Para 1.2 — This section explains how the departmentalized acc

1.2 MAIN FEATURES OF DEPARTMENTALIZED ACCOUNTING ORGANIZATION 1.2.1 Secretary of each Ministry/Department is the CAA in terms of Rule 70 of GFR, 2017. The CAAs discharge these functions through and with the assistance of the FA and Head of Accounting Organization i.e. Pr.CCAs/CCAs/CAs(independent charge) as the case may be, of the Ministry/Department concerned. The FA has the responsibility of advising the Secretary of the Department as well as representing the Ministry of Finance in the assigned line Ministry.

FA is responsible for the overall management of government transactions and their internal audits with the assistance of the Head of Accounting Organization i.e. Pr.CCA/CCA/CA(i/c) as the case may be. FA shall ensure timely completion of Finance Accounts and Appropriation Accounts by the Head of Accounting Organisation. FA is also responsible to prepare budget estimates, revised estimates etc. and their subsequent transmission to the Budget Division in the Ministry of Finance. The detailed responsibilities and functions of the FAs are outlined in the Charter for FAs issued by the Department of Expenditure, Ministry of Finance.

1.2.2 The Pr. CCA/CCA/CA, as the case may be, function as the Head of Accounting Organisation in the civil Ministries/Departments. In practice, most of the above-mentioned functions under the system of departmentalization are discharged through the Heads of the accounting organizations viz. the Pr. CCAs/CCAs/CAs(i/c) as the case may be.

1.2.3 Pr.CCA/CCA/CA on behalf of the Chief Accounting Authority is responsible for the following main functions:

(a) Arranging payments through the PAOs/ Principal Accounts Offices, and the Drawing and Disbursing Officers (DDOs) wherever authorized to make certain types of payments. Any addition to the list of CDDOs of a Ministry/Department is however required to have the specific approval of the CGA.

(b) Compilation and consolidation of accounts of the department and their submission to the CGA in prescribed form.

(c)Preparation of Annual Appropriation Accounts relating to the Detailed Demands for Grants (DDGs) of the Ministry/Department, getting them audited and submitting to the CGA, duly signed by the CAA/Secretary of the Ministry.

(d)Arranging internal inspection of payment and accounting records maintained by the various subordinate formations and PAOs of the Department, and inspection of records pertaining to government transactions maintained in the Public Sector Banks (PSBs) and other nominated banks.

1.2.4 A Principal Accounts Office (Pr.AO) functions under Head of Accounting Organization i.e. Pr.CCA/CCA/CA(i/c) as the case may be, of the Ministry/Department concerned who shall be responsible for:

of the accounts of the Ministry/Department in the manner prescribed by CGA; (b)Preparation of Annual Appropriation Accounts, Statement of Central Transactions (SCT) and other materials and statements as required for the Finance Account of the Union Government (Civil), for submission to the CGA ;

(c)Payment of loans and grants to State Governments through Reserve Bank of India (RBI), and wherever it has a drawing account, payment from it to Union Territory Governments/ Administrations;

(d)Preparation of manuals keeping in view the objective of management accounting system if any, and rendition of technical advice to PAOs. It also maintains necessary liaison with CGA's Office for overall coordination and control in accounting matters;

(e) Maintaining Appropriation Audit Registers for the Ministry/Department as a whole, in order to watch the progress of expenditure of various Grants of the Ministry/Department.

Note 1: In accordance with Rule 79 of GFR, 2017, Ministries/Departments may open Sub-Heads and Detailed Heads as required by them in consultation with the Budget Division of the Ministry of Finance. Their Principal Accounts Offices may open Sub/Detailed Heads required under the Minor Heads falling within the Public Account of India subject to the above stipulations.

1.2.5 PAOs and the departmental DDOs so authorised to draw funds, will make payments pertaining to respective Ministries/Departments by means of issue of e-payment advices or cheques drawn on the offices/branches of the accredited bank for handling the receipts and payments of the Ministry/Department. Each PAO or DDO shall draw cheques/issue e-payment advices only on the particular/authorised branch/branches of the Bank and with which it has an account.

1.2.5.1 All receipts of the Ministry/Department shall also be finally accounted for in the books of the concerned PAO.

1.2.5.2 Specific approval of the CGA is mandatory for creation or re-organisation of a new PAO.

1.2.6 The CGA/Addl.CGA/Jt. CGA(s)/Dy. CGA

(s) have also been authorised to authenticate all orders and other instruments concerning the CGA's organisation vide Ministry of Home Affairs notification No. F.23/5/78-public dated the 22nd September, 1978, as amended from time to time.

What This Means

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

• 1Secretary of each Ministry is the Chief Accounting Authority (CAA) under Rule 70 of GFR 2017
• 2Financial Adviser oversees government transactions, internal audits, and budget estimates
• 3Pr.CCA/CCA/CA functions as Head of Accounting Organisation responsible for payments, accounts compilation, and internal inspections
• 4PAOs make payments through e-payment advices or cheques on accredited bank branches only
• 5CGA's specific approval is mandatory for creating or reorganizing any new PAO

Practical Example

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Cross References

Frequently Asked Questions

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.