Para 5.14 — CAM

5.14 SUBMISSION OF MATERIAL FOR STATEMENT No.5 OF FINANCE ACCOUNTS TO CGA 5.14.1 The PAOs should submit a copy of the 'Ledger' with details upto minor heads to the Principal Accounts Office and by the prescribed date, every year. The Principal Accounts Office will tally the figures in the 'Ledger', (after excluding those under P.S.B. Suspense) with that prepared by it from the SCT. After this verification, it will consolidate/total the figures for all its PAOs, and prepare a statement of " Summary of Balances". Each Principal Accounts Office will finally send one copy each of the Sector-wise 'Ledger', 'Government Account' and 'Summary of Balances' to the CGA office every year, by the prescribed date.

Certain Government decisions occasionally affect such balances representing progressive effect of bookings made in earlier years, and necessitate alteration in the figures of balances exhibited in the "Ledger of Balances", Finance Accounts, etc. In such cases, the provision of "Proforma Correction" will be used and not by passing (the old transactions of expenditure etc) through the monthly accounts/S.C.T. of the year in which the relevant Government decision is taken.

The following are some of the main types of situations in which "Proforma Corrections" are required to be made:

(i) Change of Classification: Decision may be taken by Government in consultation with the Budget Division,DEA,Ministry of Finance and CGA on the advice of the C. & A.G. for change in classification of any specific type of transaction of a head closing to "Government Account" or for transfer of balance from one to another head under Loan or Debt etc. which closes to balance. The decision would imply that the aggregate effect of transactions booked during earlier years under a relevant head will have to be transferred to a new head selected for the purpose. An example of this type is the consolidation of loans given to State Governments that involves transfer of aggregate balances from one Minor Head/Sub-Major head to another Minor Head/ Sub-Major Head. Specific example for this is the "Loans consolidated on the recommendations of the various Finance Commissions" under the Major Head "7601-Loans and Advances to State Governments."

(ii) Increase or Decrease in the Opening Balances: Based on decisions of Government, the Controller of Aid Accounts and Audit as well as Railway Board effect certain increases or decreases in the opening balances of heads of accounts exclusively operated by them. This is done without routing the adjustments through the monthly accounts or the SCT of the year for which the Finance Accounts are under preparation.

(iii) Aided Institutions and Departmental Commercial Undertakings: In case of any special orders of the Government or where a Government aided institution is taken over without any cash outgo to be run as a Departmental Undertaking, the balances pertaining to its liabilities like loans and advances and assets and investments owned by it, are taken under the relevant head of account with a contra entry against "Government Account". This will include the head under which loans were granted earlier. Similarly, where a Departmental Undertaking is converted into a Company or Corporation, the balance pertaining to progressive capital expenditure under various heads for the Undertaking, is required to be re-classified under appropriate heads, on account of the change in the status of the Undertaking.

The effects of these adjustments shall be incorporated in the material for relevant statements of Finance Accounts. It will be shown distinctly in a separate line, under the opening balance of the concerned minor head below the relevant major head, with the nomenclature "Prior Period Adjustment Account". The net effect of these adjustments on "Government Account" will also be worked out for arriving at the balance as on 31st March of the year, for the purpose of inserting against the concerned head in the material for Statement No. 5 of Finance Accounts.