Para 8.3 — This paragraph explains how outward claims receive

8.3 PROCEDURE FOR ADJUSTMENT OF OUTWARD CLAIMS RECEIVED FROM OTHER PAOs THROUGH CASH SETTLEMENT

8.3.1 Such transactions may represent either recoveries or receipts initially accounted for by the Pay and Accounts Officer of the other Department or Government or payments made by other Government/Department, which are finally adjustable in the books of the PAO which receives the claim. In the former case, the other Pay and Accounts Officer will settle receipts/ recovery through C category cheque or any other instrument authorised by CGA, along with supporting schedules etc. (Form CAM 54). On receipt of the C category cheque, the Pay and Accounts Officer will send it to the bank for credit to Government account along with a challan showing the classification of the receipt or recovery and credit the final head of account at the time of compiling the account on receipt of the bank scrolls.

8.3.2 In the latter case i.e. when another Department or Government has made payment, an account with supporting vouchers will be sent by the other party along with a claim for reimbursement. On receipt of the claim, the Pay and Accounts Officer will examine it to see whether prima facie, it pertains to the Department under their payment control and if necessary, consult the Departmental officer. If it pertains to their Department, the Pay and Accounts Officer will have a bill prepared for the amounts duly classified under final head, pass and send the bill to the cheque section, just as in the case of a bill presented at the bill counter of the PAO. The cheque section will issue the cheque and send the paid voucher to the accounting section along with other vouchers paid during the day. The debit will be classified under the final heads at the time of compiling vouchers received from the Cheque Section as in the case of other payments. The cheque will be dispatched to the PAOs of the Government or Department concerned along with a forwarding letter in Form CAM-56, giving reference to the number and date of the letter through which the claim was received.

8.3.3 Specimen entries of the accounting adjustments to be made in the books of the PAO on account of Inter-Departmental and Inter-Governmental transactions are given below-

(a) Recovery (say of ₹ 500) made from pay bill towards Provident Fund subscription adjustable in the books of another PAO:

First Stage: When the recovery is effected it will be classified under "8658-Suspense AccountsPAO Suspense-Transactions" adjustable by PAO 'X' - ₹ 500/-Credit-Original.

Second Stage: When the cheque is issued in favour of the other PAO, schedule of Debit or Credit received in Form CAM -54 will serve the purpose of bill. The accounting entry will be as follows-

"8658- Suspense Account -PAO Suspense-Transactions" adjustable by PAO 'X'-₹ 500/-minus credit, and credit shall be afforded to "8670-Cheques and Bills-PAO Cheques" ₹500/-. The credit under PAO cheques will be cleared on receipt of the bank scroll, indicating payment of the cheque.

Payment made by the PAO on behalf of another Government/Department: In such cases, payment will be initially debited to "8658-Suspense Accounts-PAO Suspense” head and the account of the payment will be sent to the other PAO concerned for reimbursement. On getting cheque from the other PAO, it will be sent to bank for credit to Government account. When the bank scroll is received with this credit, the item will be classified as minus debit under the suspense head referred to above.

(c) Recovery made by other Pay and Accounts Officer which is adjustable in the books of the PAO:

When the cheque is received in the PAO from the other PAO along with supporting schedule, it will be sent to bank for clearing, along with the challan indicating final classification of the receipt. On receipt of the bank scroll, the credit will be taken to the final head of account.

(d) Payment or services rendered by another Government / Department adjustable in the books of Pay and Accounts Officer:

i. On the basis of preliminary checks, if the PAO prima facie finds the accounts received (from the other PAO) adjustable in his books, he should reimburse the full amount claimed by the PAO within a period of 7 days of the receipt of the account. He should not wait for the detailed audit of vouchers. Wherever the PAO finds it necessary to consult the Departmental Officer, the payment so made will be classified under the Minor Head Expenditure Awaiting Transfer (EAT) to other heads below the concerned functional head of the Department. Otherwise, he/she will adjust the payment to the final head of account and intimate the Departmental Officer. ii. In the cases where Departmental Officers are to be consulted, the PAO will communicate the details of the debit claims received by him for acceptance by the departmental officer. When the acceptance is received, the PAO will clear the booking under EAT by contra debit to the final head of account. iii. On receipt of the remarks of the Department, if it is found that the transactions are not adjustable in the books of the PAO, he will raise claim for the payment already made to the originating PAO, in the accounts for the month in hand. All the supporting vouchers etc. received from the other PAO should also be returned. iv. The PAO must keep a close watch over clearance of the transactions recorded under the suspense head. The reasons for delays over a month will be thoroughly investigated and appropriate action taken.

8.3.4 A Register of Inward Claims in Form CAM-55 will be maintained to watch the settlement of accounts and claims from other accounts offices, with separate folios used for claims received from different Governments/Departments. As regards the form of register and procedure relating to Outward claims, para 8.2.1 may be referred. For watching the clearance and settlement of Inward and Outward Claims, PAO Suspense Broadsheet has to be maintained in Form CAM- 64.

8.3.5 The PAOs may directly raise the Outward claims that require to be settled with State AG. But the outward claims of State AG which as a special arrangement are required to be settled with PAOs, may be routed through the concerned Principal Accounts Office, except those relating to expenditure on National Highways.

8.3.6 Outward claims of GPF pertaining to State Government or UT employees on deputation with Central Government will be settled directly with the AG/authority nominated by the State/UT Government for the maintenance of GPF accounts of its employees by the PAO. Wherever a State or UT Government has taken over the work relating to maintenance of GPF accounts from the Indian Audit & Accounts Department, it will be done without routing through the AG office.

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

• 1Covers adjustment of claims from other PAOs through cash settlement
• 2Two types: (a) receipts/recoveries via C-category cheque, (b) payments via demand draft
• 3Receiving PAO must verify and book under the final accounting head
• 4Response within prescribed timeline is mandatory; rejection requires justification
• 5Supporting vouchers must accompany all claims

Practical Example

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

Frequently Asked Questions

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