Para 2.19 — CAM
Original Rule Text
2.19 CLOSING OF THE DAY'S /MONTH’S TRANSACTIONS
2.19.1 The Pay and Accounts Officer, at the end of the day should take up the register of cheques and verify that the number of the cheques is serially entered in the register. Before signing the cheque for its issue, Pay and Accounts Officer should ensure that process for issue of cheque has been completed in PFMS. This would help in reconciliation of register of cheques delivered and e-payment advice (CAM 11) with PFMS Report available under CAM reportsCheque Issue register (PC-03). He should also initial in the register to ascertain the number of cheques that have been actually used during the day. He should ensure that entries in the register are tallied with PFMS cheque issue report on daily basis. The entries in the register of cheques should be added up at the end of each day.
2.19.2 Daily voucher number should be affixed on the paid vouchers in the case of ink signed bills processed in PFMS.
2.19.3 On receipt of payment scrolls from the Bank regarding the cheques encashed, the corresponding cheque numbers should be entered in PFMS. It should also be ticked off in the Register of Cheques. A list of outstanding cheques should also be prepared in the PAO every month from the un-ticked entries in the register of cheques. The total amount of such outstanding cheques at the end of the month should be reconciled with the balance outstanding as per respective outstanding cheque report (BR-01) in PFMS. Also, it should be reconciled with balance in the accounts under the Major Head 8670-Cheques & Bills-Minor Head “PAO Cheques".
2.19.4 If any cheque appears to be outstanding for an unduly long period, necessary enquiries should be made regarding its non-encashment. If the same cannot be traced, the payment should be stopped and the charge representing it cancelled and revise suitably the entries in the
accounts against it.
2.19.5 The particulars of the cheques outstanding/remaining un-encashed for more than three months as per the PFMS report should be pursued at once for tracing it. The cheques pending shall be referred to the concerned authority/ person etc. for finding outwhether the cheque has been got encashed and if so, they shall be asked to furnish the date of encashment along with other requisite particulars.
2.19.6. In cases, where the party / person concerned intimates non-receipt / loss of cheque the PAO shall issue duplicate cheque after following the procedure laid down in para 5.4.
2.19.7. In case efforts of the PAO to trace the cheque after one year has failed, it shall be reported to Pr.CCA/CCA /CA with full facts and the amount shall be written back in the accounts.
What This Means
At the end of each day, the PAO must verify that cheques are serially numbered in the register, that all PFMS processes for cheque issuance are complete, and initial the register to confirm the last serial number. At month-end, additional closing procedures apply: reconciling the total cheques/e-payment advices issued with bank records, verifying that all transactions are properly recorded in the compilation book, and ensuring that the monthly accounts are ready for submission. The daily and monthly closing procedures are fundamental controls that prevent fraud and ensure accounting accuracy.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1PAO must verify serial numbering of cheques in the register at end of each day
- 2PFMS completion of cheque issuance process must be confirmed before signing
- 3PAO initials the register to certify the last cheque number issued each day
- 4Monthly closing includes reconciliation of cheques/e-payments with bank records
- 5Monthly accounts must be compiled and readied for submission to the Principal Accounts Office
Practical Example
At 5 PM, the PAO reviews the day's register of cheques delivered: 12 cheques were issued, numbered serially from 456789 to 456800. The PAO verifies each entry in PFMS, confirms no number was skipped or duplicated, and initials after the last entry. At month-end, the PAO reconciles the total of all cheques and e-payment advices issued during March with the bank statement, identifies any outstanding cheques, and prepares the monthly account for submission by the 10th of April.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does the PAO need to check serial numbers daily?▼
What happens during the monthly closing?▼
What role does PFMS play in the closing process?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.