Para 6.10 — CAM
Original Rule Text
6.10 ANNUAL CLOSING OF ACCOUNT
6.10.1 Pay and Accounts Officers should calculate manually or through the electronic system as the case may be and allow interest on GPF balances in respect of each subscriber in terms of Rule 11 of GPF (CS) Rules and the corresponding provisions of CPF (India) Rules. He will verify the interest calculation done manually or by system on a sample basis to ascertain the correctness of calculations. He will also make necessary accounting adjustments to transfer the total interest amount to Fund Account in the March (Supplementary) accounts. After the accounts for March (Supplementary) are closed, the balance at the credit of each subscriber as on 31st of March, including interest for the year should be worked out in the ledger and the broadsheet. The total of closed balances shown in the broadsheets should then be reconciled with total figures under concerned head of account in the annual account. The individual closing balances in the broadsheets should also be verified with those in the ledger folio before they are carried over to the next year's ledger folio and broadsheets as opening balances. This should be done both under the manual as well as electronic system. The AAO in charge should attest the balances so carried forward.
6.10.2 The subscriber's Annual Statement of Accounts should be prepared in Form CAM 49 and issued to the subscribers latest by the 31 st of May every year. The accounts statements should be sent to the respective Heads of Offices who will be called upon to send a certificate to the effect that all the account statements sent to them have been received and delivered to the subscribers. If no discrepancies are pointed out within a period of 3 months of closing date of issue of Annual Statement, it will be presumed that the balance has been accepted by the subscriber.
6.10.3 In the case of any representation received from the subscribers (along with certificates of deductions) pointing at mistake in the annual statement of account, immediate action should be taken to rectify the same including by locating of the missing credit/debit for adjusting the subscriber's account.
6.10.4 After the issue of annual statements, an annual review of all Provident Fund accounts should also be conducted. This is mainly to check that opening of ledger accounts are not omitted in any case or to see that duplicate account is not maintained for the same subscriber. This is also done, in general, to examine that the credits are appearing in all months and reasons for non-recovery or irregular recovery of advances and subscriptions are properly recorded in the ledger folio, and the balances are correctly carried forward from year to year. A detailed re-check of the postings especially those relating to debits should be conducted. It should be done in such a manner that at least one month's credit postings and all the 12 months debit postings are checked fully. This review should be done by the PAO through the staff who are not related to the maintenance of broadsheets and may even be entrusted to the Internal Audit Unit.
What This Means
This para covers the annual closing of GPF (General Provident Fund) accounts. At the end of each financial year (March Supplementary accounts), the PAO must calculate and credit interest on each subscriber's GPF balance as per Rule 11 of GPF (CS) Rules. The PAO verifies interest calculations (manual or electronic) on a sample basis. The total interest amount is transferred to the Fund Account through an accounting adjustment. After closing March Supplementary accounts, the closing balance for each subscriber (including interest) is computed in the ledger and broadsheet. The broadsheet totals must be reconciled with the figures under the GPF head in the annual account, and individual balances must be verified between broadsheet and ledger before being carried forward as opening balances for the next year.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Interest on GPF balances must be calculated and credited in March (Supplementary) accounts
- 2PAO verifies interest calculations on a sample basis, whether done manually or electronically
- 3Total interest is transferred to Fund Account through an accounting adjustment entry
- 4Closing balances in broadsheets must be reconciled with GPF head figures in the annual account
- 5Individual closing balances must be verified between broadsheet and ledger before carry-forward to next year
Practical Example
A PAO managing 500 GPF subscriber accounts begins year-end closing in April. The system calculates interest for each subscriber based on the monthly minimum balance method at the Government-notified rate. The PAO verifies the interest calculation for 50 accounts (10% sample) by recalculating manually, finds all correct, and posts the total interest (say Rs 45 lakh) as a transfer entry debiting '2049 Interest Payments' and crediting '8009 State Provident Fund-GPF.' The broadsheet total of all 500 closing balances (Rs 12 crore) is then reconciled with the GPF head in the annual account. Each subscriber's closing balance in the broadsheet is matched with their individual ledger folio before being carried forward as the opening balance for the new year.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
When is GPF interest credited to subscriber accounts?▼
How is the interest calculation verified?▼
What reconciliations are required at year-end for GPF?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.