Types of accounts by Section Officer Sarfraz Ahmad Sirohey

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Financial Management : Types of Accounts in College and their handling Sarfraz Ahmad Sirohey

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Financial Management : Types of Accounts in College and their handling:

Financial Management : Types of Accounts in College and their handling Sarfraz Ahmad Sirohey Section Officer

Financial Management: Principles of Financial Control:

Financial Management: Principles of Financial Control Propriety The expenditure is incurred with due regard to high standards of financial propriety; Purpose The funds are spent for the purpose for which they are allocated; Rules & Regulations The funds are spent in accordance with relevant rules and regulations; Limitations The actual expenditure does not exceed the budget allocation; Prudence The expenditure is not more than the occasion demands Public Advantage No authority exercises the powers to its own advantage Allowances not to be a source of profit The amount of allowances granted to meet the expenditure of a particular type are not source of profit to the recipient; Inevitable Payments Money payable should not be left unpaid

Why should Accounting records be maintained?:

Why should Accounting records be maintained? Proper documentation is an important component of Financial Management in all the Govt departments/offices. Accounting records should be maintained adequately and properly for audit purpose. Accounting records are required to be maintained in their original form for at least 10 years

Role of College Head:

Role of College Head Expenditure Head of Office must ensure that all claims for payments are prepared properly, approved, classified, and recorded according to the rules and procedures for expenditures. Receipts All receipts are recorded and accounted for in the books of accounts properly.

Maintenance of Accounting Records:

Maintenance of Accounting Records General policies Following policies shall be applicable to all accounting records: Accounting records are not to be maintained in loose-leaf form . In the preparation and processing of transactions, and in all accounting entries, pencil is not to be used. Pages not to be removed from an accounting record. Where corrections are necessary the word or figure to be removed shall be crossed / ruled through and the correction initialed by the officer making it. The correct entry will then be inserted above the correction Erasures (including the use of correction fluids or chemicals) are not permitted in any accounting record.

Accounting Records to be kept by a College:

Accounting Records to be kept by a College Cash Book (or equivalent) Petty Cash Book (or equivalent) Contingent Payment Register Payroll/Establishment Register Receipt Register Asset Register Appropriation/Budget Control Register

Accounting Records to be kept by a College:

Accounting Records to be kept by a College Special Purpose Fund Register GPF Subscription Register of Class IV employees Stock Register Movement Register for vehicles Service Books and leave Accounts of Non – Gazetted employees Register of Losses

Cash Book:

Cash Book Certificate at the face of cash book Record each entry Initial each entry (Receipt/Payment sides) Close cash book Compare closing balances Record closing certificate First Page of Cash Book: Certified that this Cash Book contains page 1 to 500; An amount of Rs. ____/- has been sanctioned by the AG as an Imprest money for the office; The Balance brought forwarded from previous is Rs. _____

Payroll/Establishment Register:

Payroll/Establishment Register Contents of Establishment Register Salary is paid according to entitlement Deductions are made properly Recoveries are effected Record of loans and advances is prepared

Information Maintained in GP Fund record:

Information Maintained in GP Fund record A monthly deduction register of class IV employees, should be maintained in each office. Entries should be made from monthly payroll and reconciled regularly. Employee name Current position / Seniority number Current BPS GP Fund type (e.g. Federal, Provincial) Date of entry into GP Fund Monthly rate of subscription to GP Fund from salary Net accumulated GP Fund balance Interest earned Advances drawn against GP Fund (individual amounts and dates drawn, and in total).

Receipt Register:

Receipt Register Entries are examined Deposits into Bank are made in time Consolidation Reconciliation with Bank record / challan Reporting

Asset Register:

Asset Register following information shall be kept on the Fixed Assets Register for each asset. Description Classification of asset Date of purchase or date of completion Original purchase cost in Rupees Cost in foreign currency (where applicable) Asset identification number Current location Ownership of/responsibility for asset Land and Buildings Vehicles Plant and Machinery Furniture and Fittings Civil works Office/Computer Equipment

Stores and Stock Register:

Stores and Stock Register Stores are consumable items acquired not for resale. The stock accounts may vary according to the nature of stores. Stock taking report shall be shared with the Accounts Office concerned once in a year. Receipt of stores – quantity and quality Issue of store – requisition, its recording and fresh purchase Physical verification – interval and certificate Dead stock and loss of stores

Appropriation/budget head register:

Appropriation/budget head register Separate budget heads Original allocations Re-appropriations Supplementary grants Diminishing balances

Reconciliation Statements:

Reconciliation Statements Reconciliation plays very important role as out put control. Preparation of expenditure statements Overstatements Understatements Preventive/detective

Service Book:

Service Book The Opening page of Service Book should contain following information: Name Nationality & Religion Residence Father Name & Residence Date of Birth Exact height Personal Mark for identification Signature of Government Servants Signature of attesting office

Service Book Check List:

Service Book Check List Particulars of the Government Servant neither updated nor verified by the Authorized Officer. It usually happens when the second book is started, on completion of the 1 st one; The entries are pasted instead of handwritten on the Service Book; Relevant Office Orders are not attached with the service book; Errors and corrections made are not attested with signature and date; White papers are attached without binding; only the printed format of the service book can be added with the Service Books; The pages of the Service Book are pasted with gum; Dates of attestation are not added with signatures; Sequence of the events is not maintained ; The observations of the Accounts office are not responded properly at appropriate level; usually, it is written “Needful done”.

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