The Treasury Rules & The Subsidiary Orders. Section I SHORT TITLE AND COMMENCEMENT. Section II DEFINITION

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1 The Treasury Rules & The Subsidiary Orders Section I SHORT TITLE AND COMMENCEMENT T.R. 1 These rules may be called the Treasury Rules (Assam) and they shall come into force on the 1 st April, Section II DEFINITION T.R. 2 In these rules, unless the context otherwise requires, the following expression have the meaning hereby assigned to them that is to say. a) Province and Government mean respectively the Province and the Government of Assam. Governor means Governor of the Province of Assam. b) Public Accounts means the Public Account of the Province of Assam, i.e. to say, the consolidated fund into which moneys received on account of the revenues of the Province as defined in Sec 136 of the Government of India Act, 1935, are paid or credited and from which all disbursement of, or on behalf of, the Province are met. Note:- Without prejudice to anything contained in Section 136 of the Government of India Act, Revenues of the Province would include all moneys received by Government officers on behalf of the Government as such ; not only the proceeds of the taxation and the yield of ordinary revenues but also capital receipts, such as the proceeds of sales of land; the proceeds of borrowing operations ; unfunded that; and unless the contrary intention appears, such receipts of a banking or deposit nature as by virtue of 1

2 any statutory provision of any general or special executive order of the Government have to be held in the custody of the Government. NOTES T.R. 2. (b) The note under this rule was substituted vide correction slip No. 46 [ Dy. Fin (A) 407 of 1941] and the original note read as follows : Note Revenues of the province means and includes all moneys received by a Government Servant of behalf of Government; not only the proceeds of Taxation and the yield of ordinary revenue but also Capital receipts such as sales of land; the proceeds of borrowing operation ; unfunded debts; and such receipts of a banking and deposit nature as, by virtue of any statutory provision, or of any general or special executive order of Government have to be held in the custody of Government. c) Treasury means any treasury of the province and includes a sub treasury. d) The Bank means the Reserve Bank of India, or any branch or agency of the Reserve Bank of India and includes any branch of the Imperial Bank of India acting as the agent of the Reserve Bank of India in accordance with the provisions of the Reserve Bank of India Act,1934 (Act II of 1934). e) Collector means the chief officer in charge of the Revenue Administration of a district. f) Accountant General means the Head of Office of audit and accounts sub ordinate to the Auditor General of India, who keeps the accounts of the province and exercises audit functions in relation to those accounts on behalf of the Auditor General of India. Note: - In Assam the designation is Comptroller. 2

3 g) Indian Audit Department mean the offices and establishment, being in India and subordinate to the auditor General of India, that are employed upon the keeping and audit of the accounts of the federation and the provinces, or upon one or other of these duties. h) Finance Minister means that one of the Governor s ministers to whom the business of finance is allocated by the Governor by whatsoever designation such persons may be called. i) The Act means the Government of India Act, SECTION III LOCATION OF MONEYS STANDING IN THE PUBLIC ACCOUNT OF THE PROVINCE T.R. 3 Save as provided in sub rule (2) of Rules 7 moneys standing in the public accounts must either be held in the treasury or in the Bank, moneys deposit in the Bank hall be considered as one general fund held in the books of the Bank on behalf of the province. The deposit of the such moneys in the Bank shall be governed by the Terms of the agreement met between the Governor and the Bank under Section 21 of the Reserve Bank of India Act, 1934 ( Act II of 1934). S.O (a) Detailed rules for dealing with treasury, both specie and currency notes, are laid down in Appendix IV. (b) A remittance of treasury, as soon as it is dispatched from or paid out of a treasury, should be charged off in the cash book. Similarly, immediately on the arrival of a remittance, credit for the whole invoiced amount should be given in the cash book. 3

4 SECTION IV GENERAL SYSTEM OF CONTROL OVER TREASURY T.R. 4- (1). Unless the government, after consultation with the comptroller, otherwise directs in any special case there shall be a treasury in every district. If money standing in the public accounts are, in any district not deposited in the Bank, the treasury of that district shall be divided into two departments; a department of accounts under the charge of an accountant and a cash department under the charge of a Treasurer. (2) The Treasury shall be under the charge of the collector, who may entrust the immediate executive control to a treasury officer sub ordinate to him but may not divest himself of administrative control. The collector, shall be responsible for the proper observance of the procedure prescribed by or under this rules and for the punctual submission of all returns required from the Treasury by the Government, the Comptroller and the Reserve Bank of India. Subject to the provisions of this rule, the respective responsibilities of the collector and the Treasury Officer for business of the treasury shall be such as may be defined in accordance with such rules as the Finance Minister may approve after consultation with the Comptroller. NOTES Control meaning of: - The word Control is synonymous with superintendence, management or authority to direct, restrict or regulate. S.O. 2-- The respective responsibilities of the Collector and the Treasury officer in respect of the Treasury business are detailed below: RESPONSIBILITIES OF THE DEPUTY COMMISSIONER 4

5 (1) The Deputy Commissioner is personally responsible to Government for the due accounting of all moneys received and disbursed and for the safe custody of cash, notes, stamps, securities and other Government properties. (2) He is bound to satisfy himself by periodicals examinations at least once in every month for deposit and once in each month for cash, stamps, securities, bill and money order forms- (i) that the actual stock of cash, stamp and securities is kept under joint lock and key, and corresponds with the book balance, that the treasurer does not hold a sum larger than his necessary for the convenient transaction of Government business and that this sum together with the values of stamps, opium, etc, in his sole custody, is not larger than the security given by him; (ii) that the stock of bills and similar forms which are intended for use in monetary transaction are carefully kept under lock and key by the treasury officer and periodically tallied with the nominal balance of such form from the stock books, and ; (iii) that the sub treasury balance are verified once a month by a Gazetted Government servant, if possible by a covenanted Government servant, besides verifying the balances himself during his tour. (3) He should satisfy himself that the deposit register are kept up according to rules and that all necessary entries are met and initialed without fail at the time of the transaction ; also that no moneys are placed into deposits or allowed to remain in deposit unnecessarily. (4) He should, when assuming or making over charge of a district, see that the stock of cash, stamps, etc, is thoroughly verified and that the certificate of taking over charge in which the state of the cash, stamps and opium balances 5

6 should be shown, is invariable dispatched to the comptroller on the same day that the transfer takes place. (5) He should send, under his signature or with his approval, all replies to important communication from the Comptroller. Although he may manage his Treasury by a deputy, he must not treat his treasury as a separate and independent office. He should not address the Treasury Officer officially, or forward the Treasury Officer s explanation instead of his own, in reply to question or enquiries touching his treasury work. NOTES Communicate Meaning of: - the ordinary meaning of the word Communicate is to impart, confer or transmit information. It is the communication of the order which is essential and note its actual receipt by the officer concerned and such communication is necessary because till the order is issued and actually send out to the person concerned authority making such order would be in a position to charge its mind and modify it if it though fit. But one such an order is sent out, goes out of the control of such authority, and therefore, there would be no chance whatsoever of its changing its mind or modifying it. The word communicate cannot be interpreted to mean that the order would become effective only on its receipt by the concerned servant unless the provision in question expressly so provides. Actually knowledge by him of an order where it is one of dismissal, may, perhaps, become necessary because of certain consequences. But such consequences could not occur in the case of an officer who has proceeded on leave and against whom an order of suspension is passed because in this case there is no question of his doing any act or passing any order and such act or order being challenged as invalid. (6) Unless unable to perform the duty from physical inability or from absence on tour, he is required to sign the periodical accounts. He is also required to see 6

7 that implicit obedience is given to the instruction issued from the audit office and to send immediately notice to the Comptroller of any embezzlement in an office or treasury. This notice must be supplemented as soon as possible, afterwards, by a detailed report after personal enquiry into the case. (7) He should remember that. When an irregularity of any kind is brought to his notice by the Comptroller, nothing but a report on his own knowledge after personal investigation can be considered satisfactory. It is not enough for him to pass on the explanation of a subordinate. (8) He should see in consultation with the executive engineer that the strong room is safe, also that the chests are substantial, hinges, hasps, etc, in good order and immovable, the lock sufficient, and the duplicate key in the safe custody. In hill district and frontier tracts in which the public works are in charge of the district officer or the political officer acting as Public Works Disburser, the latter inspect the strong room provided a qualified engineer inspects them once in every five years. (9) He should cause the chest containing opium, kept at Sadar and Sub divisional Treasuries, to be frequently examined, and if necessary moved, in those treasuries in which white ants have gained a lodgment. RESPONSIBILITY OF THE TREASURY OFFICER (10) Appointment of very Junior Officer to the charge of Treasuries is objectionable, but if in a temporary emergency such an appointment is made, the departure from the strict rules should be reported to the Comptroller, and the reasons for it should be explained to that officer. The report should be sent in the form of a statement containing the following particulars. : (i) (ii) (iii) (iv) Date of taking over charge. Name and Designation of the officer Date of appointment in the service Reasons which lead to the position of a junior officer 7

8 NOTES Appointment and transfer - The Supreme Court merely held that in certain circumstance different words may not necessarily produce a sense in the meaning and every observation has to be read with reference to the context. In the instant case, however, the plain end unambiguous language of Art 217(1) proviso (c) and Art. 222 cannot be stretched to indicate that appointment and transfer are synonymous terms when the constitutional provisions make it very clear that the power of transfer and the power of appointment are two different kinds of power to be exercised in different ways. (11) As the Deputy Commissioner s delegate and representatives, the treasury officer is responsible to the Deputy Commissioner primarily for the right discharge of his duties. Just as Government hold the Deputy Commissioner responsible in the first instance and expects from him such general supervision, as is incumbent upon an officer entrusted with collection of the revenues and payments of Governments dues, so will the Deputy Commissioner look to the Treasury Officer for observance of all prescribed treasury rules and strict attention to all details of the daily routine of the treasury work. The Treasury Officer is responsible to the Deputy Commissioner for the working of the treasury and for the conduct of the sub ordinate treasury officials, and he must have carefully prepared rules for the guidance in every branch of his duties; these rules applies also to the officer in charge of a sub divisional treasury. (12) The Treasury Officer if held personally responsible for all sums of money disbursed by him in a public capacity without authority. For the custody of the cash balance he is jointly responsible with the treasurer. (13) The Audit Officer will supply all treasury officers within his audit area with a copy of the specimen signatures of all gazetted others serving under him who are authorized to sign payment orders on bills and vouchers or to issue letter of authority for payments to be made at treasuries. Before a treasury officer 8

9 pays a bill on the authority of an order purporting to have been issued from the audit officer he should verify the signature on the order by the comparison with the specimen signature of the signing officer. (14) The Treasury Officer has no general authority to deal with demands presented at treasury, his authority to make payments being strictly limited by the provisions of the Treasury Rules No (15) The Treasury Officer may not undertake correspondence Government Servant making a claim to any special allowance but will request to him to address the Comptroller either direct or though his official superior. (16) The Treasury Officer should similarly attend to all objections and orders communicated to him or through by the Comptroller, by letters, audit memoranda or periodical objections, and return the objection statements and audit memoranda within a fortnight, or send letter explaining the course of delay. Notes: - The fact that some of the objection are still under reference is no reason for keeping back the statements. Such case can be extracted for subsequent explanation. (17) The Treasury Officer should see that Indian Officer signing bills or orders for payment of money write their signature legibly either in the English character or in their vernacular, in which cases the signature should be transliterated into English. (18) A Treasury Officer may not draw bills on other treasuries until his authority to do so has been notified in the gazetted by the District Officer. On taking over charge he must render to the Comptroller certificate or of the number of bills forms received and a specimen of his signature. (19) When the Comptroller disallows a payment as un authorized the treasury officer must not only recover the amount disallowed without listening to any objections or protests but also request to make further payment in future till the Comptroller authorizes the payment to be resumed. That no warning slip 9

10 has been received by the government servant retrenched, or that being received, it has been answered, are fact with which the Treasury Officer has no concern. Note 1- If a Government Servant from whom a recovery is ordered has meantime been transferred to another district, the treasury officer should, without delay pass on the order of recovery to the other treasury. Note 2- Recoveries are not ordinarily made at a rate exceeding one-third of pay, unless the officer effected has, in receiving or taking the excess, acted contrary to orders of without due justification. Note 3- A register should be maintained at the treasury for recording all retrenchments ordered by the Audit Office. It should contains columns specifying the name and office of the person from whom the recover is to be effected, the nature and amount of the over payment, and the method by which the over payment has been adjusted. Note 4- If considered desirable, the recovery of a sum retrenched from a pay bill need only be made from the next pay bill, and of a sum retrenched from a traveling allowance bills, from the next payment of traveling allowance; but retrenchment of traveling allowance must be recovered in cash or from pay bills when the officer concerned does not, within a month present a traveling allowance claim from which they can be recovered. VERIFICATION OF CASH BALANCE AND SUBMISSION OF MONTHLY ACCOUNTS T.R. 4-(3) The duty of verifying and certifying the monthly cash balance, if any, in the treasury in such manner as the Finance Minister after consultation with the Comptroller may prescribe and of submitting the monthly accounts of such balance in 10

11 such from and after such verification as the Comptroller the may require, shall be undertaken by the collector or by such other officer as the Government may specify. It must be performed by the collector in person at least once in every period of six months. NOTES Month Meaning of.- In common parlance, the term Month is hardly understood as a calendar month according to the Gregorian calendar, but it by and large means space of time from a day in one month to the corresponding day in the next. This is the meaning of the month given in the concise Oxford Dictionary, 1964 Edition. The term month has been explained also in the Bombay general Clauses Act, The term month as defined in Sec 2 (30) of the Bombay General Clauses Act, means a month reckoned according to the British Calendar. The term reckoned is equivalent of the term calculated or counted. S.O. 3- The detailed rules for the monthly verification of the treasury cash balance and the procedure for such verification are contained in Rules 15 and 16 of the Appendix IV. This responsibility of the district officer in respect of this verification is also laid down in S.O. 2. S.O. 4- The following supplementary rules may be useful. They are of general character, do not exhaust the means of detailed check which a District Officer s experience may lead him to have recourse to, the discharge of his personal responsibilities. Verification should primarily be directed towards three main points; (I) (II) That the treasury which the treasury is stated to contain is what it should contain. That the treasury contains all the treasure which it is stated to contain. 11

12 (III) That the treasury does not contain any treasure which it should not contain. It is not sufficient merely to see that the amount shown by the treasurer in his account is produced as there is thus no guarantee that he is not keeping money out of account which has been received into the treasury may still be there. (1) The processes advised in respect of direction I are the checking of the correctness of the Accountant s balance sheet and its comparison with the treasurer balance sheet. The Accountant s balance sheet shows the balance which the treasury should contain. This balance sheet is checked by the treasury officer with the cash book and subsidiary registers, etc, in detain every day and it is not expected the District Officer should repeat those checks at the time of the monthly verification. He should, however, generally satisfy himself as to its correctness before comparing it with the Treasurer s balance sheet and specially see- (i) (ii) (iii) That the several sub treasury balance include in the Accountant s balance sheet agree with sub treasury balance sheet for the last day of the month, the accounts of which have been incorporated in those of the District Treasury, as certified to by the sub divisional officers. That remittances within the district, shown as in transit, in the Accountant s balance sheet, have been duly advised by telegram, and that satisfactory explanation is forthcoming as to their non inclusion in the treasurer s cash book or the sub treasury daily sheets concern. Remittances are required to be credited in the treasurer s cash book, immediately on receipt. Having thus satisfied himself as to the general correctness of the accountant s balance sheet the District Officer should compare the balances brought out there in with that shown in the Treasurer s balance sheet for the corresponding day, discrepancies, if any, being reconciled or corrected and other suitable action taken. He should 12

13 then record the results of this comparison in the Accountant s balance sheet over his dated signature. (2) The next step is the verification of the treasury with the detailed distribution, as shown in the treasurer s balance sheet as corrected, where necessary in the manner indicated below; (i) (ii) (iii) The entire contents of each receptacle should be taken out, examined and counted as required by Rule 16 of Appendix IV and in accordance with such other orders as the Provincial Government or the Divisional Commissioner may have issued. The result should be recorded by the District Officer under his dated initials in the memorandum of contents kept in each receptacle. Each receptacle should be locked in the presence in the District Officer as soon as its contents have been verified by him and report another receptacle is opened. When the contents of all receptacle have been verified the District Officer should see that the total amounts, thus verified, agree with the corresponding entries in the Treasurer s balance sheet, and record the result of the comparison over his dated signature in the Treasurer s balance sheet. Any excess or deficiency which cannot be reconciled should be recorded to the Comptroller on the same day. Having ascertained that the Treasury contains all that it should contain, the District Officer should satisfy himself that the Treasury contains no treasure which it should not contain. For this purpose he should personally and carefully inspect every receptacle in the strong room and in the single lock room, where one exits, even if reported to be empty. A note to this effect should be recorded on the back of the Treasurer s balance sheet for the day. Should any unaccounted for treasure be detected, the District Officer should immediately institute an enquiry and report the result to the Comptroller forthwith. The 13

14 District Officer should also take step to ensure that there is no possibility of treasure being introduced into or taken out of strong room or of being moved from one receptacle to another while the verification is in progress. REPORT OF TRANSFER OF CHARGE OF A COLLECTOR T.R. 4- (4) When a new collector is appointed to a district he shall once report his appointment to the Comptroller and shall certify to the comptroller the amount of the cash balance, if any, which he has taken over. The certificates shall be submitted in such form and after such verification as the Finance Minister may, after consultation with the Comptroller prescribe. S.O. 5- The form of the charge report in use is given in T.R. Form No 1.[ Vide also S.O. 2(4)] MANAGEMENT, WORKING AND INSPECTION OF TREASURIES T.R. 4- (5) -- No portion of the responsibility for the proper management and working of treasuries shall devolve upon the officers of the Indian Audit Department. The inspection of treasuries by officers of the Indian Audit Department shall not relieve the collector of his responsibilities for management and inspections. S.O. 6- The responsibility for the proper management and working of the District Treasuries rests entirely with the local revenue officers acting under the orders of the Provincial Government and no portion of this responsibility should be imposed on the Comptroller. The inspection of Treasuries by Commissioner or other inspecting officer is not intended to relieve the District Officer of their responsibilities in the matter of management and inspections. 14

15 S.O. 7- During his annual inspection of each Sadar office the Commissioner should also enquire how far the Treasury rules are attended to examining carefully the Treasury records and should ascertain by personal inspection that the treasure, notes, stamps, opium are kept in proper custody. ADMINISTRATION, WORKING AND INSPECTION OF SUB TREASURIES T.R If the requirements of the public business make necessary the establishment of one or more sub treasuries under a District Treasury, the arrangement for the administration thereof and for the proper conduct of business there in shall be such as may be prescribed by the Finance Minister after consultation with the Comptroller. The daily accounts of receipts and payments of moneys at sub treasuries must be included in the accounts of the District treasury. S.O. 8-- The procedure in regard to the receipts, custody and payment of money at District Treasury is generally applicable to sub treasures also. Note - Each order for payment must be signed by the officer in charge of sub- treasury, and the voucher stamp Paid or paid by transfer, as the case may be, at the sub treasury. The Sadar Treasury officer must initial and date this voucher in token of their having been examined and accepted by him as correct. S.O. 9 Payment due from District Treasuries are generally made at sub treasuries by means of Reserve Banks Drafts which can be issued by all treasuries and sub treasuries having currency chest facilities. Cash orders should be issued only where remittances cannot be affected by means of Reserve Bank Drafts. Cash orders outstanding for more than three months should be held as lapsed and the payment stopped, the charge represented by them being cancelled. A statement of lapsed cash order should be submitted to the Comptroller with the monthly cash accounts for necessary adjustments, specifying (I) incase of cash orders issued for service payments the number and date of the voucher in which the charge were originally drawn, and the 15

16 name of the officer by whom they were drawn, and (II) in the case of cash orders issued on behalf of a Word s Estate or a Municipality the number and date of the cheques, If payment is subsequently claimed, the claimant should forward the lapsed cash order to the Treasury officer who will arrange for the payment a note being made against the original entry concerned to prevent a second payment. Exceptions- As an exception to this rule, the following classes of bills may be paid at a sub treasury without authority of the District Treasury. But the payment of these bills shall not, except under special arrangements and on particular occasions, be the District Treasury also: (1) Pay and traveling allowance bills and bills for service postage stamps of offices permanently statione4s at a subdivision except bills for advances of pay and traveling allowance of officers and men of the Railway Police, Haflong, which are only at the District Treasury at Silchar. (2) Grant in aid bills (3) Scholarship bills (4) Cheques drawn by Public Works telegraph and forest departments who have been authorized to draw on the sub treasury. (5) Cheques drawn by Local Bodies banking with the sub treasuries. (6) Government Drafts and Bank Drafts issued on a sub treasury (7) Repayments of revenue, Criminal and Civil courts deposits received at the sub division. (8) Refunds of Criminal fines and Income taxes. (9) Pension bills of pensioners, authorized to take payments at sub treasuries. (10) Remuneration bills of copyists. (11) Bills for loans under agriculture and land improvements, loans act. (12) Bills pre audited by the Comptrollers. (13) Contingent bill of the Public Works Department. 16

17 (14) Contingent bills of drawing officers stationed at sub divisional head quarters who do not draw bills against the allotment of superior officers stationed at the Head quarters of the District (vide Rules 28 of the Contingency manual, 2 nd edition) (15) Travelling allowance bills of inspecting officer without the counter signature of the Sadar Treasury Officer. (16) Grants to local bodies in or near sub divisional towns. NOTES S.O. 9- The first sentence of this rule was first substituted vide Correction slip no 50 [ Dy. Fin (A) 528 of 1941]. The original first line as such read is follows: Payments due from district treasuries are generally made at sub treasuries on cash orders issued by the District Treasury. The first substituted first line as such read as follows: Payments due from district treasuries are generally made at sub treasuries by means of Reserve Bank Drafts which can be issued by all treasuries and sub treasuries having currencies chest facilities. Cash order should be issued where no such facilities exist. The words, except bills at Silchar at the end of exception (1) were added vide correction slip No 37. In item No (2) and (3) to the exception the words passed by the inspector of schools, were omitted vide correction slip No 8. The present item No (14) was inserted vide correction slip No 8 and the subsequent items were re-numb red. 17

18 S.O From the sub treasuries a daily sheet (supported by vouchers) is received, reporting the receipts, payments and balance of the day; and the receipts and payments (after examination) are to be posted from it, on the day of the receipt, into the accounts of the district treasury in the same way as if they have taken place at it. But they do not pass into the treasurer s cash book. Note If a treasury officer owing to the volume of sub treasury transaction feels it difficult to scrutinize each and every sub treasury voucher, he may at his discretion leave over the work to the accountant. A percentage checks not less than 20 percent being effected by him. All vouchers checked by the treasury officer himself must be initialed by him as a token of the fact that he has exercised the check. S.O.11-- Annual inspections of sub treasuries by Commissioner are not required. They should inspect them from time to time, so as to secure their proper management and administration. Sub treasuries should, however, be inspected annually by District Officers. T.R. 6-- [Omitted] SECTION V PAYMENT OF REVENUES OF THE PROVINCE INTO THE PUBLIC ACCOUNT T.R. 7-(1) Save as hereinafter provided in this section all moneys received by, or tendered to, Government servants on accounts of the revenues of the Province, as defined in Section 136 of the Act, shall without undue delay be paid in full into the treasury or into the bank and shall be included in the public accounts. Moneys received as aforesaid shall not be appropriated to meet departmental expenditure nor otherwise kept apart from the public accounts. No department of the Government require that any 18

19 moneys received by it on account of the revenues of the province be kept out of the Public Account. Notes:- Peremptory receipts of courts and donation and subscriptions realized by the Civil Surgeons for Hospital purposes and subscriptions and donations received by the Civil Surgeons from Local Bodies for expenditures in connections with anti malarial operation do not form part of the revenues of the province. T.R. 7 (1) -- The note below this rule was inserted vide correction slip No 2 [Finance Department U.O. No F.(a)Dated the 2 nd October, 1939, Dy, No. (Fin)(a)- 597 of 1939] S.O The District officer may for special reasons direct the cash chest of other departments to be lodged in the treasury for safe custody. When the cash chest are so lodged the fact should be recorded for the information of the Comptroller and a register in the same form (T.R.Form No. 2) as for valuable received in the treasury for safe custody should be kept in which the receipt and return of the cash chest should be duly acknowledged. The key or keys of these chest must not be kept by the treasury. Bullion, jewellery and other valuable such as promissory notes, security deposits, duplicate keys, etc, coming into the hands of Government Servants in their official capacity, may be received in the treasury in sealed bags or covers for safe custody at the discretion of the Deputy Commissioner [ Vide rule 61 (b) of the Assam financial Rules] S.O No money should be unnecessarily allowed to pass through the hands of the Nazirs of the district and sub divisional courts. Direct payment into the treasury by the person from whom the money is receivable should be insisted on and direct payments made whenever this is possible. 19

20 S.O. 14 Cash received in the agricultural firms and sale proceeds of jail manufacturers shall always be paid into the treasury when the sum of Rs. 50 has accumulated, and irrespective of the amount on the latest date in every month fixed for closing the accounts. Notes--- The latest date fixed for closing the accounts is settled by the Comptroller in consultation with the District Officer and incorporated in his Audit Manual. S.O Whenever in exceptional cases, the course prescribed in S.O.No 13 cannot be followed the nazir may receive the money, but he should at once enter it in his cash book and pay all the realization daily at the close of business, into the local treasury accompanied by a challan showing how the amount is to be credited in the treasury accounts. CASES WHERE DEPARTMENTAL RECEIPTS MAY BE APPROPRIATED FOR DEPARTMENTAL EXPENDITURE [ These exceptions are given here merely as of illustration and not to be regarded either as essential or exhaustive] T.R.7(2)- Not withstanding anything contained in sub rule (1) of this rule direct appropriation of departmental receipt for Departmental expenditure is authorized in the following cases. That is to say ; (a) (b) in the case of moneys received on account of the service of summonses, diet money, of witness and similar purposes, in Civil, Revenue and Criminal cases; in the case of fees received by the Government servants appointed notaries public. Under Act XXVI of 1881, and utilized to defray legal expenses incurred by them in the discharge of their duties as such Notaries public; 20

21 (c) (d) (e) in the case of cash receipts utilized in accordance with departmental regulations by the Public Works Department to defray expenditure on current works or utilized by the department under authorization of the Comptroller to defray pay and traveling charges. in the case of cash found on the person of prisoners at the time of their admission to jail and used for the repayment by the Jail Superintendents under departmental regulations or similar sums due to other prisoners on their release. In the case of cash received by the forest department and utilized in meeting the immediately local expenditure ; Provided that the authority hereby given to appropriate departmental receipts for departmental expenditure shall not the construed as authority to keep the departmental receipts and expenses defrayed therefrom outside the account of the payments into and the withdrawals from the public accounts. S.O. 16 The public accounts of the province should show the gross incomings and outgoings separately and not merely the difference between the two. S.O.17 Where departmental receipts are appropriated for departmental expenditure a bill for the actual disbursement made out of the departmental receipts should be prepared in the Form relevant to the particular class of transaction in every month. It should be presented to the treasury on or before the latest date fixed for closing the treasury accounts. (Note under S.O.14) For payment by transfer credit to the head or heads to which the receipts would have been credited in time, had they not been appropriated for departmental expenditure. As regards forest and Public Works Departments the procedure in this respect is laid down in the departmental rules. In the case of the prisoners cash receipts for deposit in the custody of Government, a quarterly adjustments as indicated above may be made, large accumulation being credited whenever necessary under rule 448(g) of the Assam Jail Manual, Volume 1. 21

22 NOTES Accounting.- There are two principal method of accounting for the income, profits and gains of a business; one is the cash basis and the other mercantile basis. The latter system of accountancy brings into credit what is due immediately it becomes legally due and before it is actually received; and it brings into debit expenditure the amount to which a legal liability has been incurred before it is actually disbursed. The book profits are taken for the purpose of assessment of tax, though the credit amount is not realized or the debit amount is actually disbursed. If an income accrues within a particular year, it is liable to be assessed in the succeeding year 1. There is no analogy between the balance sheet of a company and the accounts kept by the appellant in respect of her individual business activities. The agreement that the principal statutorily recognize in respect of balance sheets should be extended to private books of accounts keep according to mercantile system, cannot be accepted 2 There is a difference between the system of accounting of banking companies in India and the United States. In India at the end of the year of account, the unallocated profit or loss is carried forward to the account of the next year, and such unallocated amounts gets merged in the account of that year. In the system of accounting in the U.S.A. each years account is self contained and nothing is carried forward. If after allocating the profits to diverts hence mentioned above, any balance remains, it is credited through the Undivided profits which part of the capital funds. If in any year as a result of the allocation there is a loss the accumulated undivided profits of the previous year are drawn upon and it that fund is exhausted the Banking company grows upon the surplus. In its very nature the undivided profits or accumulation of amounts of residue in hand at the end of year of successive period of accounting and these amount are by the 22

23 prevailing accounting practice and the treasury directions regarded a part of the capital fund of the banking company 3 It is well known that the mercantile system of accounting differs substantially from the cash system of book keeping. Under the Cash system, it is only actual cash receipts and actual cash payments that is recorded as credits and debits; whereas under the mercantile system, credit entries are made in respect of amounts due immediately they become legally due and before they are actually received; similarly, the expenditure items for which legal liability has been incurred are immediately debited even before the amounts in questions are actually disbursed. Where accounts are kept on mercantile basis the profits or gains are credited though they are actually realized and the entries thus made really nothing more than an accrual or arising out of the said profits at the material time. The same is the position with regards to debits made 4 MONEYS PAYABLE INTO THE PUBLIC ACCOUNT T.R.8- Moneys received by the Government servant whether in an official or another capacity which do not relate to or form part of the revenues of the province shall not be included in the public accounts and a Government Servant is not required to pay into the public accounts any such moneys.if any question arises moneys are or are not moneys relating to or forming part of the revenues of the Province, the question shall referred to Government whose decision shall be final. S.O.18- If Government servant receives in his official capacity moneys which do not relate to or form part of the revenues of the Province and the deposit of which in the custody of Government has not been authorized by Government [ See note to T.R 2(b)]. He must open an account with a bank for their deposit. Accounts under this rule may be opened with an office of the Reserve Bank of India. With a Branch of the Imperial Bank of India, with a Post Office Savings Bank pr, subject to the approval of Government, with any other bank. The Government servant will be personality responsible that the moneys are expended in strict conformity with the rules and 23

24 regulations governing the fund of the fund is kept in afo5rm complying with the regulations of the fund. The rules governing the banking of regimental funds are given in parag5raph 846 and Appendix XXII-A of the regulation for the Army in India (1927 Edition). T.R.9-(1) A Government servant may not, except with the special permission of the Government deposit in a Bank moneys withdrawn from the Public Account under the provisions of section VII of the rules. (2) With the permission of the Government his private or Military Secretary may open an account in a bank for the deposit of funds under the personal control of the Governor. Note- The relaxation permitted in Clause (2) is not in force in Assam. T.R. 10- The procedure to be adopted by Government Servants in receiving moneys on account of the revenues of the Province, granting receipts for such moneys and paying them into the Public Accounts of the Province and by the treasury and the bank in receiving such moneys and granting receipts for them shall be such as may be prescribed by the Finance Minister after consultation with the Comptroller. The procedure so prescribes shall, among other matters, contain provisions so as to secure that (i) any person paying money into the treasury shall present with it a memorandum (chalan) in such form, as may be prescribed, which will show clearly the nature of payment and the person of Government Servant on whose account it is made and will thus contain all the information necessary for the preparation of the receipts to be given in exchange and for the proper accounts classification of the credit and its allocation between Government and departments concerned; (ii) at places where the money is to be deposited in the bank, the memorandum or chalan refer to in Clause (1) above, shall, except where otherwise provided be presented to the Treasury Officer who shall enface it with an order to the Bank to receive the money and to grant a receipt ; 24

25 (iii) if a cheque on a Bank is accepted in payment of Government dues under any rules, a receipt for the actual cheque only shall be given, but the formal receipt for payment shall not be delivered until the cheque has been accepted by the bank on which it is drawn; (iv) at place where the money is to be deposited in the Bank, the advises of receipt, which according to any provision made under this rule have to be sent to Public Officers or Departments and consolidated receipts or certificates of receipts required by any such provisions to be given to any Public Officers or department, shall be given by the treasury and not by the Bank. I DEPARTMENTAL OFFICERS S.O The procedure to be adopted by Government Servant in receiving moneys on account of the revenues of the Province and granting receipts for such moneys is detailed in Chapter III, Part I of the Assam Financial Rules. S.O. 20 Any person paying money into the treasury shall present it with a memorandum (chalan) in the prescribed form (T.R. Form No 3). Which will show clearly the nature of the payment and the person or Government Servant on whose account it is made and will thus contain all the information necessary for the preparation of the receipt to be given in exchange and for the proper accounts classification of the credit and its allocation between Governments and Department concerned. Receipts for sums less than Rs. 500 do not require the signature of Treasury Officer, but only of the accountant and the treasurer. Receipts for the price of service postage stamps realized in case of cheques should be given only in machine numbered T.R. Form No 4. S.O Printed forms of challan should be supplied by the treasury which may with advantage be bilingual. They should be presented in duplicate; the original copy will be returned to the tenderer duly signed as a receipt and the other retained in the treasury for record. When money is paid by a private person into a treasury located in the same place as the departmental Officer concerned in the payment, the challan should be 25

26 initialed by the Departmental officer to whose account the money is to be credited. Otherwise the challan should be presented in triplicate, the triplicate copy being forwarded by the treasury to the Departmental Officer. Chalans may be presented in triplicate or quadruplicate, when so required by Rule in any departmental code or manual. If the chalan is presented in triplicate or quadruplicate, the original copy will be returned to the tenderer duly signed as a receipt, the duplicate retained in the treasury for record and the triplicate forwarded to the Departmental Officer concerned unless required to be otherwise dealt with under any authorized rule or procedure. In the case of payments relating to the Assam Agricultural Income Tax made at the Reserve Bank of India, Calcutta, Chalans should be presented in quadruplicate; the original copy will be returned to the tenderer duly signed as a receipt, the duplicate retained in the Bank for submission to the Accountant General, Bengal, the triplicate forwarded by the bank direct to the Treasury Officer concerned, and the quadruplicate sent to the Income Tax Officer who signed the chalan. NOTES S.O. 21 the paragraphs 2 nd and 4 th were inserted vide correction slip No 55 [ Dy. Fin (A)-541 of 1941]. S.O A Public Works Officer, who has frequently to make remittances will keep a book (Treasury Rules Form No 5) in which he will enter all his remittances to the treasury. This book should accompany the cash and the chalan to be receipted by the treasury. S.O.23 Duplicate chalans are not required when remittances are made to a treasury for obtaining Government drafts and sub treasury cash orders; or when such 26

27 remittance are accompanied by Remittance and Pass books in which the Treasury Officer is required to acknowledge the receipt of the remittance. Rules relating to issue of drafts are contained in the Chapter XVII of the Assam Financial Rules. Remittances made for obtaining Telegraphic Transfer Bank Drafts and Mail Transfers should be accompanied by the special form prescribed by the Reserve Bank of India. This form, which is without duplicates, covers the amount of the drafts as well as the exchange and other charges due there on. NOTES No. Fin (A).-49 of 1941.] S.O the second paragraph was added vide correction slip No 42 [Dy S.O A Treasury Officer will receive Forest Revenue 1) when paid in by a Forest Officer ; or 2) when the chalan is counter signed by a Forest Officer ; or 3) When the Treasury Officer is specially authorized to receive it. In such case a copy of the chalan will be forwarded by the Treasury Officer direct to the Divisional Forest Officer in order that the revenue may be brought to accounts in the books of the latter. S.O Remittances by Forest Officers may be in case or partly by cheque or wholly by a cheque drawn against the drawing accounts, the amount paid in cash and the amount remitted by cheque being shown separately in the chalan or remittance note. 27

28 S.O If a Public Works Officer sends a cheque as a remittance to the treasury, the cheque should be drawn in his own favor and endorsed by himself with the words Received Payment by Transfer Credit to the Public Work Department. S.O.27-- Remittances made to the Reserve Bank of India at Calcutta or cheques paid in as per Public Works Receipts should be entered in the remittance books, but in the place for the treasury receipts should be entered By Bank Cheques. And the book need not be sent with the remittance, provided that the cheques are always endorsed as prescribed in the presiding rules. II TREASURIES S.O The memorandum with which money is presented to be paid in will be handed first to the Accountant (Treasury Clerk) or other officer, who is in charge of the accounts of the Department concerned who, if it is in order in all respect, will sign it. Next, the person making the payment will present it with the cash to the treasurer who will count ant test the money, enter the amount in his own book, and sign the slip, which will again be taken to the Accountant for entry in his cash book and for the preparation for a formal receipt for his own or the Treasury Officer s signature. Such a receipt will be proper acquittance. It the memorandum is in duplicate the original copy may be made use of for the receipt given by the treasury. Note 1-- If a cheque on a Bank is accepted in payment of Government dues under the rules, the receipt for the actual cheque only should be given, but the formal receipt for payment should not be issued until the cheque has been cleared.- (Vide Financial Rule 57) Note 2-- All receipt chalan should, in addition to the signature prescribed by the above rules; be impressed with the treasury seal. 28

29 Note 3-- The amount of chalan should be written both in figures and words. Except in the copies other than the original and such other copies as are required t o be given to the tenderer of moneys, of chalan in which the amount may be expressed in figures only. Note 4 -- When money has been paid in to a treasury, the Treasury Officer should not sign a duplicate memorandum, or a copy thereof, on the allegation that the original has been lost (Assam Finance Rule 91). NOTES S.O correction slip No 245. The paragraphs after Note 3 under this S.O. was inserted vide Amount meaning of. - According to the shorter Oxford English Dictionary, third Edition, page 57 the word (amount) has the following meaning; Amount (amount sb.1710(f.the vb.) 1. The sum total to which anything amounts up; spec. the sum of the principal and interested fig. The full value, effect, or significance A quantity or sum viewed as a total means; According to Webster s Third New International Dictionary, page 72, amount Amounts 1 a: the total number of quantity: aggregate (the amount of the fine is doubled ); the sum, number (at the same amount to such column) (the amount of the policy is 10,000 dollars) b: the sum of individuals (the unique amount of worthless 10 U s collected during each days business R. L. Taylor) c: quantity at hand or under consideration (only a small amount of trouble involved ), a surprising amount of patience ) 2: the whole or final effect significance, or import (the amount of his remarks that we are hopelessly beaten, 3: according : a principal sum and the interest on it syn see sum 1. 29