Compilation of Government Accounts

1
Compilation of Government Accounts
2
Compilation of Government Accounts

• Accounts are Statements of facts relating to
  money or things having money value. The facts
  that are incorporated in accounting records are
  transactions.
• A mere chronological listing of monetary
  transactions in the form of cash account does not
  bring out the significance of the transactions
  and their aggregate effects.

3
Compilation of Government Accounts

• It becomes necessary that the transactions are
  classified under various heads and that the
  results of the transactions under these heads are
  arranged in such a form as to show clearly not
  merely the significance of each separate
  transactions but also the combined effect of any
  desired series of transactions.

4
Compilation of Government Accounts

• It becomes necessary that the transactions are
  classified under various heads and that the
  results of the transactions under these heads are
  arranged in such a form as to show clearly not
  merely the significance of each separate
  transactions but also the combined effect of any
  desired series of transactions.

5
Compilation of Government Accounts

• As of now the Comptroller and Auditor General is
  responsible for maintaining the accounts of the
  State Governments and of Union Territories,
  (except that of the State of Goa and the Union
  Territory of Pondichery).

6
Compilation of Government Accounts

• In this session we will discuss the various
  prescribed steps in the compilation of accounts
  in the Indian Audit and Accounts Department.

7
Learning objective

• At the end of the session, the learner will be
  able to state the sources from which accounts are
  received in Accountants General office, procedure
  for receipt of accounts from the treasuries and
  its distribution, maintenance of Detail Book,
  opening of new heads of accounts, and compilation
  of accounts also that the, learner will be able
  to state limitation of the manual system and the
  need for Voucher Level Computerization (VLC).

8
Initial Accounts

• The initial accounts of receipts and payments on
  behalf of the State Governments are maintained in
  the State Treasuries who compile and render them
  monthly to the Accountant General concerned.
• In the case of certain large departments like
  Public Works and Forest vested with cheque
  drawing powers, the account of the moneys drawn
  are maintained by the Divisions themselves, who
  render monthly accounts to the respective
  Accountant General.

9
Sources of initial accounts

• District Treasuries
• Pay and Accounts Offices of the State Government
• Public Works Divisions, Forest Divisions and
  other departmental accounts offices which are
  authorized to make payments through cheques
• Clearance memos advising Inter-Government
  Adjustments in the books of the Reserve Bank and
  the statement of monthly balances from the
  Reserve Bank
• Adjustments carried out in the office of the
  Accountants General

10
Checking of Initial Accounts and their treatment

• The Accountant in Central Treasury Section will
  check the contents of account received from the
  treasury with the printed covering list
  accompanying them and put his dated initials. If
  any documents is wanting it should be called for
  at once.
• (ii) The Accountant will check each entry in the
  Cash Account and the Lists of Payments with the
  schedules supporting it and write the word
  "Agreed" with dated initials in the beginning and
  end of the Cash Accounts, Lists of Payments and
  Schedules against each entry. In case there is a
  discrepancy it should be pointed out to the
  Treasury Officer and got reconciled without
  delay.

11
Flow diagram of Receipt of Initial Accounts
PWD Divisions
Forest Divisions
Treasuries
AGs of other States
Ministries of GOI
Compiled Accounts
Vouchers and Cash Accounts
Settlements
Adjustments generated internally and externally
AGs Office
Accounts
State Government
12
Missing Vouchers / Schedules

• Book Section should count the Vouchers/Schedules
  of one Major Head of one Treasury each month. The
  counting should be done, and details recorded in
  a register
• As and when the Treasury Accounts are received in
  Central Treasury Section (or in Book Section),
  the contents of the bundle of Vouchers/ Schedules
  relating to the Major Head already selected by
  the Branch Officer for the purpose should be
  checked carefully by the Accountant in presence
  of the representative of the Treasury. Necessary
  certificate of check exercised should be issued
  over the signatures of the Branch Officer to the
  Treasury Officer concerned immediately

13
Missing Vouchers / Schedules

• If defects, e.g., missing vouchers, wanting
  schedules in respect of deductions to be
  accounted for by Account Compiling Sections of
  this office, etc. are noticed during the
  counting, the Treasury Officer as well as
  Director of Accounts and Treasuries should be
  addressed for taking remedial measures so that
  the defects do not recur in future. In the case
  of major defects in the accounts or bulk of the
  vouchers/schedules found missing the accounts
  should not be acknowledged unless omissions are
  supplied.

14
Missing Vouchers / Schedules

• Timely submission of the aforesaid register to
  the Branch Officer should be watched through
  Calendar of Returns of Book Section

15
Distributions of vouchers and schedules

• After completing the checks as mentioned above,
  the concerned Accountant should immediately
  arrange the distribution of vouchers and
  schedules accompanying the Cash Account and the
  List of Payments to the concerned Accounting
  Section.

16
Operating of Minor Head Departmental Adjusting
Account

• The total amount of each Departmental Schedules
  made over to Compilation Sections should be
  posted against the Departmental Suspense Heads/
  Sectional Suspense Heads concerned which should
  be opened as a detailed head under the Minor
  Heads 111 "Departmental Adjusting Account"
  subordinate to the Major Head '8658-Suspense
  Accounts ' in the Detail Book.

17
Operating of Minor Head Departmental Adjusting
Account

• These debits and credits to 'Suspense' will be
  cleared by minus debits and minus credits shown
  in the same month by the Compilation Sections
  concerned under the same head in their
  Departmental Classified Abstracts. The
  Compilation Sections concerned through their
  respective Broadsheets, if any, watch the
  adjustment of the differences in these figures.

18
Examination of Cash Accounts and List of Payments

• Check the totals of the Cash Accounts and Lists
  of Payments and see that they are expressed in
  words as well as figures
• Verify the opening balance with the previous
  month's closing balance
• Check the total figures of receipts and payments
  shown in the Closing Abstracts of the Cash
  Accounts with the figures in the Cash Accounts
  and Lists of Payments

19
Examination of Cash Accounts and List of Payments

• See that closing balance as worked out in the
  Abstract of the Cash Accounts is arithmetically
  correct
• See that the amount against each head has been
  correctly shown and that no unauthorized head has
  been opened in manuscript by the Treasury
  Officer
• See that the Cash Accounts have been signed by
  the Treasury Officer.

20
Accounting in respect of impounded cheques

• Where the cheques paid have been impounded by the
  Police at the Treasuries before their submission
  to the Accounts Office they should necessarily be
  treated on the same lines as missing/wanting
  cheques, as the cheques have not been received in
  Accounts Office for scrutiny and record. The
  receipts of such cheques from the Treasury may be
  watched through the Objection Book. As a further
  safeguard the receipts of these cheques may also
  be watched through a "Register of missing/wanting
  cheques".

21
Accounting in respect of impounded vouchers

• As regards the vouchers impounded by the Police
  before their submission to the Accounts Office,
  the charge should be kept under suspense. On
  receipts of certified Photostat copies of the
  vouchers, the question of adjustment under the
  final head of account should be decided on the
  merit of each case and, if necessary, by
  obtaining the specific orders of the Government.

22
Compilation of Accounts

• After the schedules of payments and receipts are
  received from the Central Treasury Section, the
  Accountant in the DAE Section (Compilation
  Section) will check the vouchers with the
  schedule of payments and independently total the
  schedule of payments to verify whether the total
  in the schedule as noted by the Treasury Officer
  is correct and record on the Schedule of Payments
  a certificate over his dated initials checked
  and total agreed.

23
Compilation of Accounts

• If vouchers are not received from the treasuries
  before compilation is over, or if the correct
  classification of a recovery or receipt cannot be
  ascertained, the amounts should be accounted
  under OB Suspense below the minor head
  Suspense Account under the major head 8658
  Suspense Account and included in the relevant
  Objection Book after obtaining the orders of the
  Branch Officer or the Group Officer as the case
  may be.

24
Check of vouchers in support of payments

• (a) That the vouchers are in the prescribed form
  and that they are duly receipted by the payees
  and are in original,
• (b) That a brief abstract is given in the
  official language authorized for the purpose
  under the signature of the Drawing Officer on all
  vouchers prepared in any other language,
• (c) That the sub vouchers contain notes of dates
  of payments.

25
Check of vouchers in support of payments

• (d) That they are numbered with reference to the
  number in the schedule of payment, schedule
  docket or other account.
• (e) That the details work up to the totals and
  that the totals are in words as well as figures.
• (f) that they bear a pay order signed by the
  Treasury Officer in the case of vouchers paid at
  treasuries or by the responsible Disbursing
  Officer in case of other vouchers.
• (g) That they are stamped paid.

26
Check of vouchers in support of payments

• (h) That there are no erasures and that any
  alterations in the total are attested by the
  officer concerned as many times as they are made.
• (i) That unless otherwise provided in the rules
  of Government stamps are affixed to all vouchers
  whose net amount is in excess the amount,
  prescribed under the relevant acts, and that they
  are punched.

27
Check of vouchers in support of payments

• (j) That if a treasury vouchers be paid by
  transfer, it is stamped as having been paid, and
  that the head to which the amount is credited is
  noted on it and that the credit is traced in the
  cash account when possible.
• That the classification noted on the vouchers is
  correct.
• If any objection is taken to a voucher or to any
  item in a schedule or other account, a note of
  the objection should be recorded thereon in red
  ink in the sufficient fullness to make it readily
  understood.

28
Suspense Slips/Registers

• When an item of receipt or expenditure which is
  properly adjustable in the Abstract of one
  department appears in the treasury schedule
  pertaining to other department or head of
  account, the Accountant dealing with the schedule
  should classify the amount under the detailed
  suspense head opened in the accounts for the
  provisional adjustment of the treasury
  transaction of the department which must finally
  receive the credit or debit.

29
Outward Suspense Register

• The amount and other particulars of each suspense
  slip should be entered by the Accountant in a
  Register called the Outward Suspense slip
  Register. This register should also be used as a
  transit register for the transfer of the suspense
  slips to the various sections.

30
Inward Suspense Register

• A register of Suspense Slips received known as
  Inward Suspense Slips Register should be
  maintained in the prescribed form by the
  Sections, which receive the suspense slips.

31
Broadsheet of debits and credits

• The departmental Accountant will maintain a
  Broadsheet of debits and credits in the
  prescribed form. The original entries in the
  Broadsheet should be posted monthly from the
  schedule of receipts and the second schedule of
  payments of each treasury, and from the suspense
  slips representing items transferred from other
  sections. The adjusting entries, which will be
  minus credits or minus debits, should be posted
  from the Departmental Abstract.

32
Departmental Classified Abstracts

• From the compilation sheets the totals against
  each detailed head are posted against the
  respective treasuries in the Departmental
  classified Abstract of Payments. Similarly the
  receipts or expenditure items received through
  settlement account, are also dealt within the
  manner indicated above. The Departmental
  Classified Abstracts thus bring together the
  monthly receipts and payments pertaining to each
  department for the whole account circle
  classified under the relevant major, minor and
  detailed heads of account.

33
Responsibility of Accountant for correctness of CA

• (i) Each entry in the compilation
  sheet/classified abstract of payment is supported
  by the necessary vouchers, schedules, suspense
  slips and transfer entry.
• (ii) Each entry in the Receipt Abstract is
  supported by credits in the receipts schedule and
  deduction sheets
• (iii) Every wanting document has been called for
  and the fact has been noted in the relevant
  schedule as also the register maintained for the
  purpose

34
Responsibility of Accountant for correctness of CA

• (iv) Schedules, vouchers etc. which ought to have
  been made over to other sections have been made
  over to them and acknowledgements obtained and
• (v) Vouchers relating to Gazetted Officers
  together with the supporting schedules are made
  over to the respective Gazetted Entitlement
  sections by the prescribed date.

35
Check/Review of Classified Abstracts

• The classified Abstracts are put up to the AAO/SO
  for examination with the following
• Broadsheet of Departmental Adjusting Account
  Suspense
• Register of suspense slips received and
• Register of suspense slips issued.

36
Check of Classification

• The check of classification of the charges is of
  the utmost importance and therefore very careful
  attention should be given to this work. Section
  Officer/ Assistant Accounts Officer incharge of
  the section will be held personally responsible
  for any serious errors that come to light in this
  regard.

37
Review of Monthly Accounts

• Monthly accounts are to be reviewed to find out
  any
• Misposting
• Defects or
• Discrepancies.
• and immediate steps taken to set right the
  defects etc. and to avoid recurrence thereof.

38
Consolidated Abstracts

• Next process is the preparation of Departmental
  Consolidated Abstracts, which are intended to
  show the Progressive figures, month by month
  under the major, minor and detailed heads of
  receipts and service payments appearing in the
  Departmental Classified Abstracts. The monthly
  totals under the various heads of account as per
  Departmental Classified Abstracts are posted in
  the relevant columns of the Consolidated Abstract
  and progressive total struck.

39
Abstract of Major Head Totals

• From the Consolidated Abstract of Debt,
• Deposit and Remittance Heads and the Departmental
  Consolidated Abstracts, the Abstract of Major
  Head Totals is prepared showing
• (i) the receipts and disbursements by major heads
  during and,
• (ii) to the end of the month.

40
Accounts and Book Section

• For the consolidation of accounts, the Detail
  Book, relating to Debt, Deposit and Remittance
  heads, abstracts of major heads are posted from
  the accounts and abstracts, etc., noted below -
• (1) Monthly Cash Accounts and the Lists of
  Payments received from District Treasuries.
• (2) Departmental Classified and Consolidated
  Abstracts of Receipts and Payments received from
  various Compilation Sections and Consolidated
  Abstracts of Debt, Deposit and Remittance
  Transactions prepared in the Book Section.

41
Accounts and Book Section

• (3) Settlement Account Classified received from
  the Account Current Sections.
• (4) Public Works Classified abstracts prepared
  from the Public Works Divisional Accounts by the
  Works Sections.
• Classified Abstract of Forest transactions from
  the Forest Compilation sections.
• (6) Combined Transfer Ledger and Abstract
  relating to Debt, Deposit and Remittance heads
  prepared in the Book Section.

42
Detail Book

• Particulars relating to Debt, Deposit and
  Remittance transactions appearing in the Treasury
  Cash Accounts and List of Payments and in the
  Departmental and other abstracts shall be
  collected for the whole circle of account under
  each head of account from month to month in a
  Detail Book

43
Preparation of Proof Sheets

• Before posting the Detail Book, the Accountant
  should first prepare a proof sheet by Major Heads
  of Accounts from Cash Account and the List of
  Payments of each Treasury. After posting all the
  Treasury Accounts in the Detail Books, the
  figures should be totaled and agreed with the
  proof sheet referred to above and with
  Disburser's Account.

44
Opening of New Heads

• Whenever any Department/Office of the State
  Government approaches Accountants General office
  for opening of a New Sub-head/Detailed Head of
  Account the dealing section should advise to
  refer the matter to the Finance Department.

45
Opening of New Heads

• If and when the Finance Department seeks
  advice/opinion about the opening of new
  sub-heads/detailed heads of account the case
  should be scrutinized carefully and advice
  tendered after consulting Book, Budget and TM
  Sections and with the approval of the Accountant
  General.

46
Monthly Accounts of the State Governments

• Each State Accountant General should, as soon as
  the accounts of a month are closed, submit to the
  State Government a monthly account of its
  transactions. The figures for this account should
  be taken from the Consolidated Abstracts.

47
Annual Closing of Accounts

• Besides the regular monthly accounts, the Annual
  Accounts have to be furnished to the State
  Government with the Accounts for March and March
  Supplementary.

48
March Final and Supplementary Accounts

• After 31st March of each year and after the
  accounts for the month of March are closed,
  adjustments are required to be carries out in the
  accounts. These adjustments may be on account of
  adjustment of accounts received from other
  account circles after March, missing vouchers
  received after March from Treasuries, corrections
  and adjustments necessitated to correct
  mispostings, and adjustments carried out in
  accounts like adjustment of accrued interest on
  the accounts in the Public Account (like General
  Provident Fund, etc.).

49
March Final and Supplementary Accounts

• These adjustments are carried out through
  accounts created for purpose called March (Final)
  and March (Supplementary).

50
Reconciliation of Departmental figures of
receipt/expenditure with A.G

• (i) responsibility lies jointly with the Heads of
  departments and Accountant General.
• (ii) enables and efficient watch over the
  progress of expenditure of grants
  appropriation.
• (iii) enable rectification of misclassification
  occurred during compilation of government
  accounts.

51

• Compilation of Accounts under
• Voucher Level Computerisation (VLC) Environment

52
Infrastructure

• Hardware
• Server
• Nodes
• Networking
• Software
• Operating System-Unix
• RDBMS- Oracle
• Developer 2000

53
Compilation of Accounts- Book SectionList of
Payment
54
Compilation of Accounts- Book SectionCash Account
55
Compilation of Accounts- DC SectionsSchedule of
Payment
56
Compilation of Accounts- DC SectionsVoucher
Format I
57
Compilation of Accounts- DC SectionsVoucher
Format II
58
Compilation of Accounts- DC SectionsVoucher
Format III
59
Compilation of Accounts- DC SectionsVoucher
Format IV
60
SOP- Voucher Check Process
61
SOR Challan Entry
62
Challan Entry
63
Outgoing Suspense Slip
64
Incoming Suspense Slip
65
Accounting Transfer Entry
66
Non-Accounting Transfer Entry
67
Compilation Process
68
Process for Generation of Finance Accounts
69
Some of the reports Generated Through
VLCCompilation Book

• Input Screen

70
Compilation Book- Details
71
Classified Abstract Check List
72
Classified Abstract Check List -Details
73
Consolidated Abstract
74
Consolidated Abstract
75
Monthly Civil Account
76
Monthly Civil Account
77

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