📘
Manual of Standing Orders (Accounts & Entitlements)
432 rules • Comptroller and Auditor General of India • 2002
Manual issued by CAG for Accountant Generals (A&E) covering compilation of accounts, check against provision of funds, classification of transactions, loan accounts, and pension entitlements.
General
10 -
12 -
Para 1.3The CAG can delegate any of their powers under the CAG Act, 1971 or any other law to officers within the department through general or special orders. Howe...Para 1.4The CAG is responsible for monitoring whether States are complying with financial or quasi-financial directions issued by the President. This means that wh...Para 1.5Accountant Generals and their staff carry out the duties assigned by the CAG under the Constitution and parliamentary laws. They must follow both general a...Para 2.1From 1st March 1984, the offices of State Accountants General were split into two separate entities: the AG (Accounts & Entitlement) handling all accountin...Para 2.2The AG (A&E) offices are responsible for eight core functions: compiling monthly expenditure and receipt accounts from treasury vouchers, preparing Appropr...Para 2.3The AG (A&E) and AG (Audit) offices are expected to cooperate closely, especially in central audit work, keeping in mind their common objective of improvin...Para 2.4When a State Government consults either AG office locally, whichever AG receives the reference takes the initiative. While each AG can advise on matters wi...Para 3.10Appropriation check is normally exercised only up to the sub-head level of a Grant or Appropriation, not at more granular levels, unless the Government spe...Para 3.1Articles 112 to 116 and 202 to 206 of the Indian Constitution contain the key financial provisions that define how Parliament and State Legislatures contro...Para 3.11The Accountant General may be required by the Executive Government to ensure that when multiple officers draw from the same lumpsum allotment under a singl...Para 3.12Appropriation check has two stages: first, sanction check (verifying that allotment and re-appropriation orders are valid, issued by competent authority, a...Para 3.14A register in Form 1 must be maintained to track progressive monthly expenditure against each Grant or Appropriation and each unit of appropriation. Each G...Para 3.15The AG office must proactively monitor expenditure and issue early warnings to disbursing officers (and controlling authorities if needed) when spending ap...Para 3.16Appropriation check work should be centralized in the Appropriation Accounts Section rather than being scattered across multiple departmental compilation s...Para 3.2Every expenditure from the Consolidated Fund after April 1 of a financial year must be authorized by an Appropriation Act. Any spending during the year tha...Para 3.3The A&E office's primary job in fund checking is to verify two things: that money was spent for the purpose the Grant was intended to fund, and that total ...Para 3.4Each Grant in the Appropriation Act is a single total sum appropriated for specified purposes. The detailed estimates presented to the Legislature break th...Para 3.5The AG must verify that every expenditure falls within the scope of a Grant or Appropriation in the Appropriation Act Schedule and does not exceed the auth...Para 3.6A Grant or Appropriation covers all charges (including liabilities from previous years) that are to be paid or adjusted during the financial year. It is va...Para 3.7The government department that spends money (the Executive) is ultimately responsible for making sure spending stays within the approved budget (Grant or A...Para 3.8The Accountant General has two specific watching duties: first, ensuring that total spending under any Grant does not exceed the amount approved by the Leg...Para 3.9Sub-heads under a Grant can be further divided into smaller units. The government or authorized subordinate authorities can move funds between these sub-he...Para 4.10Capital expenditure can be financed from three sources: revenue, borrowings (either specific-purpose or general-purpose loans, funded or unfunded), and oth...Para 4.1Government accounts follow a detailed classification system that categorizes every financial transaction (both receipts and payments) in a uniform way. Thi...Para 4.11While the government decides how to finance capital expenditure, the Accountant General has a duty to flag cases where the financing decision appears finan...Para 4.12Even though it may seem financially prudent to fund capital expenditure from revenue rather than borrowings, this only works if the government's revenue is...Para 4.13The Accountant General's duties regarding the classification of expenditure between capital and revenue can be summarized as follows: the AG must ensure th...Para 4.14When the government decides to write down (reduce) the book value of capital assets, the Accountant General must verify that this write-down has been appro...Para 4.15.3This paragraph explains the detailed accounting method for Reserve Funds. Grants from outside agencies or other governments are first credited to the relev...Para 4.15.1Reserve Funds are created by setting aside money from the Consolidated Fund for specific future purposes. While making grants non-lapsing by parking them i...Para 4.15.4The accounting principles and procedures described for Reserve Funds in the preceding paragraphs do not apply to two special categories: Famine Relief Fund...Para 4.2Under the CAG's DPC Act 1971, the Comptroller and Auditor General is responsible for compiling each state's accounts from initial records sent by treasurie...Para 4.3Under Article 150 of the Constitution, the President prescribes the forms of Union and State government accounts on the CAG's advice. The word 'forms' is i...Para 4.4The Accountant General must verify that expenditure is correctly classified as either 'charged' on the Consolidated Fund (expenditure that does not need le...Para 4.5When the Accountant General encounters doubtful items whose classification is unclear, they should normally consider the Central or State Government's view...Para 4.6The AG should generally accept the Executive's decision on whether expenditure is met from current revenue or borrowed funds, as long as it aligns with the...Para 4.7Capital expenditure is broadly defined as spending that creates or increases concrete, material, and permanent assets. Not all large expenditures qualify —...Para 4.8Once expenditure on a project is classified as capital, specific accounting principles apply. Capital bears all first-construction costs and maintenance du...Para 4.9The concept of capital expenditure in government accounts is borrowed from commercial accounting practice. The core idea is that capital expenditure should...Para 5.1The Accountant General (Accounts & Entitlements) is responsible to the Comptroller and Auditor General for the accuracy of all transactions recorded in the...Para 5.10When vouchers (payment proof documents) are received in the compilation sections, they must be checked against a detailed checklist: correct form, proper r...Para 5.11When original vouchers are lost and replaced by Certificates of Payment, these certificates must be scrutinized as carefully as original vouchers. Certific...Para 5.12All vouchers from the schedule of payments are posted into a 'Compilation Sheet,' where the total under each detailed head is calculated. This total must m...Para 5.13The month's total payments are posted as a minus (negative) entry in the Departmental Classified Abstract under the suspense head 'Departmental Adjusting A...Para 5.14When a receipt or payment belonging to one department's abstract appears in another department's treasury schedule, the accountant handling the schedule cl...Para 5.15.2Sections receiving suspense slips maintain an 'Inward Suspense Slip Register' (Form 5) to track all slips received. The receiving section must ensure all s...Para 5.15.1Every suspense slip issued must be recorded in an 'Outward Suspense Slip Register' (Form 4), which serves as a transit register to track slips sent to othe...Para 5.16When receipts or expenditure items from another government's treasury accounts are received through the Account Current Section for adjustment, they are ha...Para 5.17The completed Departmental Classified Abstracts capture all monthly transactions for each department, organized horizontally by source (Treasuries, Suspens...Para 5.18.2The AAO/Section Officer and Branch Officer must check the classification of individual entries in the Compilation Book/Classified Abstract above certain mo...Para 5.18.1The accountant handling a department's accounts is primarily responsible for the correctness of the Departmental Classified Abstracts. They must verify tha...Para 5.19The completed Classified Abstracts are submitted to the AAO/Section Officer along with the Departmental Adjusting Account broadsheet, the register of suspe...Para 5.2The AG's office is organized into specialized sections for handling accounts. The Central Treasury Section receives and distributes treasury accounts. DAE ...Para 5.20Monthly accounts must be reviewed to identify any mispostings, defects, or discrepancies, and immediate corrective action must be taken. If the same errors...Para 5.21After the monthly Departmental Classified Abstracts are completed, the next step is preparing Departmental Consolidated Abstracts. These show progressive (...Para 5.22Revenue and service head transactions from Public Works Department divisional accounts and Forest Department divisional accounts are compiled separately by...Para 5.23Debt, Deposit, and Remittance transactions from treasury cash accounts, payment lists, and departmental abstracts are collected for the entire state under ...Para 5.24The Abstract of Major Head Totals is the top-level summary prepared from both the DDR Consolidated Abstract and the Departmental Consolidated Abstracts. It...Para 5.25For each detailed ledger head under the 'Departmental Adjusting Account' suspense, the accountant maintains a Broadsheet tracking all debits and credits. O...Para 5.26.1When a government bill is paid first and approved (countersigned) later, both the initial Abstract Contingent (AC) bill and the subsequent Detailed Conting...Para 5.26.2When a Detailed Contingent (DC) bill arrives at the Accountant General's office, it must pass several checks: proper form, correct classification, counters...Para 5.27After vouchers have been posted into the Classified Abstracts and Detail Books and audited, they must be filed systematically. Separate files are maintaine...Para 5.3The Central Treasury Section in the AG's office receives monthly accounts from treasuries across the state. Its primary responsibility is to verify that th...Para 5.4When the monthly account arrives from a treasury, the AG's office must first check that it is complete — that all supporting schedules, lists, and document...Para 5.5If any vouchers that should have accompanied the List of Payments are still missing by the time the monthly account compilation is completed, a formal list...Para 5.6When vouchers or documents arrive late (after the monthly account was compiled), they must still be examined with the same rigor as if they had arrived on ...Para 5.7Treasury schedules relating to Debt, Deposit, and Remittance heads follow the same checking process as revenue schedules. The Central Treasury Section veri...Para 5.8.1The Central Treasury Section does more than just check completeness — it also examines the List of Payments and Cash Account for correctness of form, prope...Para 5.8.2When treasury receipts and payments are first brought into the AG's books, they are temporarily parked under a suspense head called 'DAA' under Major Head ...Para 5.9The accountant in the compilation section must independently verify each schedule of payments by checking vouchers against the schedule entries and indepen...Para 6.1The government lends money to public bodies, quasi-public bodies, and individuals under various laws or policy decisions. The Accountant General plays a wa...Para 6.10At the end of each half-year (or year, if interest is annual), the loan account must be formally closed and reopened. This involves drawing a line after th...Para 6.11After the loan account is made up at the end of a half-year or year, a copy of the updated account and the new statement of demand (showing principal and i...Para 6.12When a borrower makes payments into a Sinking Fund instead of directly repaying the loan, these payments are credited to a specific head called 'Sinking Fu...Para 6.14Revenue Advances are a special category of government loans, including takavi advances under the Land Improvement Acts and other advances made by Revenue O...Para 6.15The Government designates controlling officers who receive monthly transaction returns from subordinate offices and are responsible for reconciling their r...Para 6.16Interest-bearing advances to government servants — such as House Building Advances and Motor Car Advances — must be recorded in Form 8 and regulated by the...Para 6.17When a government servant dies, their family may receive an advance against the deceased's gratuity or General/Contributory Provident Fund balance to meet ...Para 6.18For short-term loans (recoverable in 60 or fewer instalments) given to non-gazetted government servants, the detailed individual accounts are maintained by...Para 6.19When a government department needs money for a lawsuit, the advance is not classified under a loan head but is debited to the functional (departmental) exp...Para 6.2When the AG maintains detailed loan accounts, he must promptly report any default in payment of principal or interest to the authority that sanctioned the ...Para 6.20Passage advances given to government servants on foreign service are tracked for recovery by the same AG who watches their leave and pension contributions....Para 6.21When a government servant is sent to a Pasteur Institute for treatment (typically for rabies), they may receive a recoverable advance to cover expenses. Th...Para 6.22When an All India Service officer on deputation to the Centre reverts to their state cadre with an outstanding vehicle advance, the balance is transferred ...Para 6.23Permanent advances (imprest money given to officers for petty day-to-day expenses) are recorded in a Register in Form 10, designed to last four years. The ...Para 6.24When a permanent advance amount is increased or reduced during the year, the change is noted in red ink in the register's current year column as soon as th...Para 6.25At the start of each new financial year (April 1), the permanent advance amounts standing as on March 31 are carried forward by entering them fresh in the ...Para 6.26When a permanent advance is sanctioned, the AG must verify three things: that the sanctioning officer has the authority to sanction it under government rul...Para 6.27When a long-term advance recovery credit cannot be traced in the treasury accounts, the AG may adjust it based on collateral evidence — such as a certifica...Para 6.3Given the massive scale of modern government lending — to state governments, statutory corporations, government companies, quasi-public bodies, and private...Para 6.4The AG maintains two types of Subsidiary Loan Registers for all government loans (except Revenue Advances): Form A for loans repaid by direct principal rep...Para 6.5Entries in the Subsidiary Loan Register — for date, voucher, principal transactions, and interest demand — must be made as soon as the transactions are rep...Para 6.6The Subsidiary Loan Register enables the AG to monitor whether interest and principal instalments are paid on time. Upon any delay, the AG must immediately...Para 6.7When loan expenditure is handled by the Public Works Department under special government orders, the amounts for each loan account appear in the monthly ac...Para 6.8When loan expenditure is conducted through PWD, the amounts recorded in the Subsidiary Loan Register are deemed to have been advanced on the last day of th...Para 6.9No payment can be credited as repayment of principal or into the sinking fund if any interest amount remains unpaid. This means interest takes priority ove...Para 7.1When money is received by the government to be held as a deposit (not as revenue), the AG must verify that it can legitimately be credited to the Public Ac...Para 7.10Local fund bodies that maintain banking accounts with the government have their transactions reported by Treasury Officers through plus and minus memoranda...Para 7.11After preparing plus and minus memoranda for local fund deposits, you must post them into Broadsheets (Form 14) — one for each minor head under 'Deposits o...Para 7.12.2When the Public Works Department carries out transactions that increase or decrease balances under 'Deposits of Local Funds,' the details of those transact...Para 7.12.1When the Public Works Department (PWD) spends money on behalf of a Local Fund or collects receipts for Local Fund works, those amounts must be included whi...Para 7.13For 'Other Deposit Accounts' — such as deposits for work done for public bodies or individuals, fees collected by government servants, or deposits of gover...Para 7.2When a deposit lapses (i.e., remains unclaimed past the prescribed period), the Treasury sends a 'Statement of Lapses' (Form T.A. 49). This statement must ...Para 7.3When someone applies for a refund of a deposit that has already lapsed, the application must be noted against the original entry in the Statement of Lapses...Para 7.4The deposit checker in the AG office must carefully verify that receipts, repayments, and balances are correctly carried forward in the plus and minus memo...Para 7.5When earnest money is deposited in Treasury of State X but the deposit is meant for a department in State Y, the credit is transferred through the outward ...Para 7.6Opening a Personal Ledger Account (PLA) or banking deposit account requires Government sanction, which is given only after consulting the Accountant Genera...Para 7.7Personal Deposit Accounts funded from the Consolidated Fund must generally be closed at the end of each financial year. The unspent balance is returned to ...Para 7.8For Personal Deposit accounts, the AG office's scrutiny of withdrawals is limited to checking that each withdrawal is supported by a proper paid cheque. Un...Para 7.9When Civil or other Courts open Personal Deposit Accounts with a Treasury, the courts themselves maintain the detailed deposit records and submit the State...Para 8.10The Divisional Accountant's duties extend to checking all claims in bills presented directly at Treasuries by the Divisional Officer. He must ensure servic...Para 8.11.1The Divisional Accountant is responsible for ensuring that proper arrangements exist for checking computed tenders. This means he must see that satisfactor...Para 8.11.2Beyond ensuring arrangements exist, the Divisional Accountant must personally conduct a test check of computed and checked tenders. This test check should ...Para 8.11.3The Divisional Accountant must verify that the comparative statement of tenders correctly incorporates the totals from each individual tender as they were ...Para 8.12The Divisional Accountant must ensure that all rules and orders are followed for every transaction in the division. If he believes the Accountant General w...Para 8.13When the AG office examines accounts and vouchers from Sub-Divisional Officers and finds issues, the results must be communicated back to those officers. T...Para 8.14The Divisional Accountant must periodically inspect account records at Sub-Divisional Offices and check a percentage of initial accounts, under orders of t...Para 8.15Quarterly reconciliation of works expenditure and receipts is done using the Works Accounts Summary Register maintained for each Division. This register is...Para 8.17The Works Accounts Department in the AG office should be organized into sections, each headed by a Section Officer. The primary responsibility for checking...Para 8.18Accounting work must begin immediately upon receipt of Monthly Accounts from the divisions. A comprehensive set of preliminary checks must be applied cover...Para 8.21When no minimum preservation period is prescribed for an initial or compiled account record in a Divisional or Sub-Divisional Office, the Divisional Office...Para 8.22A Works Register in Form 15 must be maintained for each divisional office. It is divided into two parts and serves as a consolidated record of important sa...Para 8.23In Part I of the Works Register (sanctions to works), only those works need to be registered where the cost is Rs 1 crore or above AND where more than one ...Para 8.24For irrigation and similar projects where a centralised accounting organisation has been established, if that organisation already maintains the same recor...Para 8.25Part I of the Works Register shows month-by-month progress of expenditure on each work against its allotment. Expenditure from the Schedule of Works Expend...Para 8.26The Works Register must be closed (totaled and balanced) at the end of each month. The register continues to be maintained for a particular work until that...Para 8.27This para provides detailed column-by-column instructions for filling Part I of the Works Register. Key points include: serial numbers are in separate seri...Para 8.28The Accountant General is responsible for putting in place suitable arrangements to ensure that all postings made in the Works Register are accurate. This ...Para 8.29A Register of Land Charges (Form 16) must be maintained to check Land Award Statements submitted by officers making awards under the Land Acquisition Act. ...Para 8.30To prove the accuracy of monthly transactions under each Suspense and balanced head and deposit balances, a Broadsheet (Form 17) must be maintained. This c...Para 8.31Broadsheets for transactions passed through Remittance heads must be maintained following the procedures described in Paragraphs 4.3.17 to 4.3.21 of Chapte...Para 8.32When one PWD/Irrigation Division provides services or supplies to another Division (whether in the same or different AG account circles), the Divisions set...Para 8.33The 'Public Works Remittances' head handles transactions between PWD officers and Treasury/Civil Department officers. It has three divisions: (1) Remittanc...Para 8.34For Division I (Remittances into Treasuries) and Division II (Public Works Cheques), the check is relatively simple: verify that the totals shown in the sc...Para 8.35When the Schedule of Monthly Settlement with Treasuries (Form CPWA 51 / PWA 26) is received, the AG office must verify that the figures in Line 4 of Part I...Para 8.36As Division I (Remittances) and Division II (Cheques) schedules are checked, Broadsheets (Form 19 for cheques, Form 20 for cash remittances) must be posted...Para 8.37Division III 'Other Remittances' is split into two sub-heads: (a) Items adjustable by Civil Officers and (b) Items adjustable by Public Works Officers. Whe...Para 8.38Accountants in the AG office are responsible for ensuring that all items communicated to Divisional Officers for response (i.e., items requiring responding...Para 8.39When Public Works Officers record transactions under the 'Other Remittances — Items adjustable by Civil Officers' head, the Accountant General must clear t...Para 8.4The Divisional Accountant must ensure every payment is recorded and receipted in such a way that no one can make a duplicate claim against the government f...Para 8.40All debits and credits under the 'Other Remittances — Items adjustable by Public Works Officers' head must be divided into three separate classes for settl...Para 8.41Class (iii) of the items adjustable by PWD Officers covers miscellaneous Public Works items that appear in the Civil Section of accounts. These include rem...Para 8.42The AG's office must watch for clearance of each debit and credit in the register by matching them against the corresponding entries in the Divisional Sche...Para 8.43The financial results of major Irrigation, Navigation, Embankment, and Drainage Works (those with capital and revenue accounts) must be compiled yearly in ...Para 8.44In Form 18, column 2 ('Names of Works') must list all works individually, with separate sub-totals for Productive and Unproductive works. Productive Works ...Para 8.45The estimated cost of construction shown in column 5 of Form 18 must be calculated using the method described in Appendix 2 of the Account Code for Account...Para 8.46After the close of each financial year, two annual statements must be prepared and sent to the relevant authorities. Statement 1 provides detailed schedule...Para 8.47An Objection Book in Form 22 must be maintained in each Works Accounts Section for every division. It records objections related to non-receipt of vouchers...Para 8.48Within each category of objection in the Objection Book, every distinct transaction that has an objection must be treated as a separate item and given its ...Para 8.49When an objection is raised during a month, the amount is entered in black ink in the appropriate column. Below it, in green ink, the progressive (cumulati...Para 8.5The Divisional Accountant must ensure that expenditure which the Divisional Officer has the authority to sanction is not being incurred routinely by subord...Para 8.50An objection must be removed from the Objection Book as soon as the required voucher or document is received. The cleared amount is entered in the 'Amount ...Para 8.51All entries in the Objection Book regarding the adjustment (clearance) of objections must be personally attested by the Section Officer. This supervisory c...Para 8.52After the Section Officer attests all clearance entries, the monthly figures for 'Amount placed under objection' and 'Amount cleared' must be totalled sepa...Para 8.53The Objection Book must be formally closed at the end of each year and outstanding objection balances carried forward to the next year's book. A member of ...Para 8.54An annual review of every Public Works Division's working must be conducted and sent to the State Government by December 15th each year. The review collect...Para 8.6The Divisional Accountant must flag any instance where subordinate officers exceed their financial authority limits. This scrutiny applies to both direct d...Para 8.7When multiple disbursing officers operate against a single financial sanction, the Divisional Accountant must ensure that clear spending limits are assigne...Para 8.8The Divisional Accountant must verify that Public Works expenditure matches the approved estimates — not just the total amount, but also the purpose for wh...Para 8.9The Divisional Accountant must ensure that the authorized total expenditure on any work is not exceeded without proper authority. Surplus recoveries (like ...Para 9.1The accounts of receipts and disbursements submitted by Divisional Forest Officers (in the prescribed forms from Account Code Volume III, Chapter VII) must...Para 9.10An annual review of Forest Division working must be prepared for each financial year and sent to the State Government by December 31st. It covers five area...Para 9.2When checking Forest Division accounts, the AG's office must verify that all charges are correctly classified using information from vouchers, the Classifi...Para 9.3Each Divisional Forest Officer must maintain a Register of cheques drawn in chronological order and track the actual encashment dates by obtaining informat...Para 9.4Forest revenue is collected by the Divisional staff who fill in the challans (deposit slips), check the classification, and hand them to the parties for re...Para 9.5When Forest Divisions make inter-divisional adjustments (as permitted under Article 245), the AG's office must match each debit in one division against the...Para 9.6Forest transactions with other government departments must be classified under the appropriate Remittance or Settlement Account heads as prescribed in the ...Para 9.7The Abstract of Contractors' and Disbursers' Ledger (Form F.A.8) from Forest Divisions must be checked to verify that all transactions are correctly posted...Para 9.8The rules for preparing Forest Division abstracts and summaries (the compiled financial statements) are laid out in Chapter 2 of the Account Code for Accou...Para 9.9If the Conservator of Forests requests them, the AG's office must provide monthly progress reports showing revenue and expenditure in a format prescribed b...Para 10.10The checking of Reserve Bank of India remittances involves three main verifications: (1) confirming that total treasury issues are properly credited to the...Para 10.1Government financial transactions are divided into two broad categories under this chapter. First, Debt, Deposits, and Advances cover transactions where th...Para 10.11Government borrowings are governed by Articles 292 and 293 of the Constitution. The Union can borrow on the security of the Consolidated Fund of India with...Para 10.12When a government raises a loan, the Accountant General must verify that the full loan proceeds are correctly recorded in the government's accounts. This i...Para 10.13The Accountant General must check whether the government has made adequate arrangements to repay its debt (amortisation), especially when borrowed money is...Para 10.14This rule sets out the principles for evaluating whether a government's debt repayment plan is adequate. For unproductive borrowings, the repayment period ...Para 10.15For debt redemption schemes, the Accountant General must verify that all conditions are being strictly followed. This includes checking that annual debits ...Para 10.16The Accountant General must monitor all investments made from the Public Account of the State, including sinking funds and cash balance investments. The AG...Para 10.17Under Articles 292 and 293 of the Constitution, both the Union and State Governments can give guarantees on loans raised by other entities (like public sec...Para 10.18When examining sinking funds established for repaying State Government loans, the Accountant General must verify two things: first, that the credits (contr...Para 10.19Government maintains various Reserve and Reserve Funds in the deposit section of accounts, created for specific purposes and funded by contributions from t...Para 10.2When the government makes payments that are subject to recovery (such as advances or loans to employees or other entities), the Accountant General (A&E) mu...Para 10.20Suspense heads are used to temporarily record transactions that will eventually be cleared through cash payment, recovery, or book adjustment. The use of s...Para 10.21The AG must scrutinize all transactions under suspense heads to ensure two things: first, that unadjusted balances represent genuine assets or liabilities ...Para 10.22All suspense head balances must be reviewed at short, regular intervals to ensure no item remains uncleared longer than reasonably necessary. The standard ...Para 10.3A key duty of the Accountant General (A&E) is to review and verify all year-end balances under Debt, Deposit, and Remittance heads. This verification has t...Para 10.4For remittance transactions, the AG must verify that all debits and credits are properly cleared, either through cash settlement or by book adjustment unde...Para 10.5To track cash remittances between treasuries and between treasuries and currency chests, the AG office must maintain a register in the prescribed Form 26. ...Para 10.6This rule prescribes the detailed procedure for posting entries in the Remittance Check Register (Form 26). When treasury payment lists and cash accounts a...Para 10.7After posting the Remittance Check Register, the accountant must reconcile the register totals with the Detail Book Part I totals. Any differences must be ...Para 10.8The squared-up Remittance Check Register serves a dual purpose: it is both a broadsheet for tracking outstanding remittances and an account abstract for tw...Para 10.9For monitoring remittances from departmental officers (other than Public Works and Forest) who submit compiled accounts to the AG, such as commercial under...Para 11.1The Accountant General must proactively clear outstanding balances, resolve discrepancies promptly, and obtain written confirmation from debtors and credit...Para 11.10Each district's unadjusted amounts in the register (Form 10) must be verified through annual acknowledgements from the responsible officers. The AG must al...Para 11.11The Accountant General must carefully monitor the progress of settling outstanding balances in accounts maintained with governments of other countries. The...Para 11.12For government loans, the AG must verify that the ledger balance matches the outstanding principal shown in the subsidiary loan registers. The AG must also...Para 11.13For certain types of advances where the AG does not maintain detailed records (like agricultural loans to cultivators), the AG verifies balances by obtaini...Para 11.14For interest-bearing advances to government servants (such as house-building advances, motor vehicle advances, and similar loans) where the AG (A&E) mainta...Para 11.15Cash remittance balances consist of unmatched debits (remittances sent but not yet credited at the receiving end) and unmatched credits (receipts acknowled...Para 11.16Public Works Remittance balances are reconciled with the ledger using the procedure described in paragraph 8.36 of the MSO. This separate procedure exists ...Para 11.17Since RBI Remittance transactions are supposed to be cleared daily and within the same month's accounts, there should ordinarily be no outstanding balance ...Para 11.18Outstanding balances under Settlement Accounts (which record inter-government transactions between Union, States, and Union Territories) must be verified f...Para 11.19Monitoring the State's cash balance in the Reserve Bank and treasuries may be done by the Finance Department or the AG (if the State desires). The AG must ...Para 11.2All Accountant Generals must submit detailed statements to the CAG by December 15 each year showing outstanding balances under Suspense and Remittance head...Para 11.20For departmental accounts (like those of Public Works), the AG must verify each month that the opening cash balance matches the previous month's closing ba...Para 11.21At year-end, the Accountant General must verify every balance held on behalf of the Public Works Department. Deposits and Takavi (loan) advances are reconc...Para 11.3This paragraph introduces the detailed verification procedures that the Accountant General must follow for various types of balances. It covers specific ca...Para 11.4The balances of service funds must be compared and reconciled with the accounts submitted by the fund's Trustees or Manager. A common source of discrepancy...Para 11.5The Provident Fund balances recorded in the ledger must be verified against the Broadsheets. Once verified, these balances are communicated to the individu...Para 11.6For unclaimed Provident Fund deposits where the AG's office maintains detailed accounts, the individual deposit details must add up to the ledger balance. ...Para 11.7Personal deposit balances must be verified by adding up all individual balances shown in the March returns. Each administrator must certify the exact balan...Para 11.8For Deposits of Local Funds, the balances calculated in the Broadsheets each year must be communicated to the officers who administer those funds. If there...Para 11.9Suspense account balances brought forward in the Objection Books and shown in the Broadsheets must be tested for accuracy using the procedures in paragraph...Para 12.10This paragraph lists the Government Provident Funds covered under the Provident Funds Act, 1925 — including the General Provident Fund, ICS Provident Funds...Para 12.1The Accountant General is responsible for maintaining all Service and Provident Fund accounts controlled by the government. This involves verifying that on...Para 12.11The Accountant General (Accounts & Entitlements) is responsible for maintaining Provident Fund accounts of state government employees. However, the CAG can...Para 12.12When a new subscriber applies to join a Provident Fund, the Fund Section must check their eligibility against the relevant rules. If eligible, a unique acc...Para 12.13As soon as the Accounts Officer learns — either through official reports from the executive authorities or by any other means — that a government servant f...Para 12.14A General Index Register in Form 30 must be maintained separately for each department, with an alphabetical index at the front. Each department should have...Para 12.15For gazetted officers whose service records are maintained by the AG, the Fund Section must ensure the subscriber submits a nomination in the prescribed fo...Para 12.16PF nominations must be stored under lock and key in the personal custody of the Gazetted Officer in charge of the Fund Section. An annual verification of n...Para 12.17When a subscriber submits a revised nomination, the old one must be cancelled and returned to them. If a subscriber sends a cancellation notice without a n...Para 12.18When a subscription is paid for the first time or the rate changes, the Fund Section must verify it falls within the minimum and maximum limits prescribed ...Para 12.19When a subscriber takes a temporary withdrawal (advance) from their Provident Fund, four main checks must be applied: (1) the advance must be sanctioned by...Para 12.20To track the recovery of temporary advances from Provident Funds, the AG must follow a structured procedure. When a sanction is received, full details — am...Para 12.2Various service and provident fund transactions are adjusted in the books of designated Accounts Officers. When a transaction arises in one state but is ad...Para 12.21Before allowing a subscriber to finance an insurance policy from their Provident Fund, the Accounts Officer must verify that such financing is permissible ...Para 12.22When an insurance policy is financed from a Provident Fund, the Accounts Officer must confirm with the insurance company that no prior assignment exists an...Para 12.23For gazetted government servants financing insurance policies from PF, the Accountant General must keep the Treasury Officer informed about the policy deta...Para 12.24For non-gazetted government servants and those who draw their pay from the department, the Accounts Officer's formal acceptance of the insurance policy is ...Para 12.25The Accounts Officer must track the receipt of insurance policies (where the first withdrawal was authorised on proposal acceptance) and premium receipts f...Para 12.26A Stock Register in Form 31 must be maintained to record all insurance policies accepted for PF financing — whether assigned to the President/Governor or d...Para 12.27When a subscriber quits service, dies, or otherwise becomes eligible for full withdrawal of their PF accumulation, the Accounts Officer authorises the fina...Para 12.28When a subscriber makes a partial final withdrawal (for purposes like house building or marriage expenses), the Accounts Officer must check that: the withd...Para 12.29A government servant's Provident Fund account is maintained by the Accounts Officer of the government on whose cadre they hold a permanent lien. If they on...Para 12.30When Provident Fund transactions arise in one account circle but are adjustable in another, they must be passed on to the other Accounts Officer monthly. T...Para 12.3The monthly certified lists of PF recoveries must include specific details when relevant: reasons for non-recovery of subscriptions in any case, informatio...Para 12.31When a subscriber is permanently transferred from one government to another, their entire PF balance must be transferred to the new government's Accounts O...Para 12.32Each subscriber's PF account is maintained on a loose ledger card in Form 32. The card records the subscriber's name, account number, subscription rate, ad...Para 12.33PF ledger cards are original records and must be kept in locked cabinets with duplicate keys held by the Section Officer and a nominated person. Cards of d...Para 12.34A Register of Closed Accounts must be maintained in Form 33 to keep a permanent record of all Provident Fund accounts that have been fully settled and clos...Para 12.35PF accounts are posted from five sources: (1) covering schedules with fund schedules from departmental accountants (verified against pay bill deductions), ...Para 12.36After receiving all the source documents described in Para 12.35, the Fund Section prepares a consolidated compilation of credits, organised by district an...Para 12.37Once all covering schedules for a department are received, the Record Clerk arranges them alphabetically by district and collects the corresponding ledger ...Para 12.38Two registers — Outward and Inward — are maintained for each department to track PF subscriptions of employees transferred between departments. When an ent...Para 12.39When posting provident fund entries using a machine, the Machinist must carefully match each ledger card's number and name against the fund schedule before...Para 12.4When crediting a subscription to a Settlement Account of a fund (like the Hindu Family Annuity Fund), the entry must always reference the specific certifie...Para 12.40After posting each ledger card, the Machinist must verify that the cross totaliser clears to zero, confirming the posting is correct. Once all schedules fo...Para 12.41Items from the departmental inward register should be posted to ledger cards normally but are not carried to the Master Card since they are not needed for ...Para 12.43At the end of each of the first three quarters (June, September, and December), the Machinist compiles the balances of all ledger cards in a department int...Para 12.44March postings should begin by mid-April and be completed by mid-May. Interest calculation starts slightly before March postings are finished and should be...Para 12.45When posting entries from ledger cards into the balance compilation statement, the Machinist must verify that the closing balance produced by the machine m...Para 12.46After the annual account statements have been sent to subscribers, the consolidated balances in Form 40 must be verified. This verification follows the sam...Para 12.47The instructions for provident fund compilation using back-feed machines (Paras 12.32 to 12.37, 12.39, 12.40, 12.42, and 12.44 to 12.46) also apply to fron...Para 12.48Ledger cards for each department must be organized into six specific pads: Settlement Account, Transfer, Discontinued Subscribers, Closed Accounts, Suspens...Para 12.49When schedules and vouchers are received, ledger cards must be arranged to match the order of subscribers in the fund schedules before posting. Certain ite...Para 12.50Green Tracing Slips (Form 41) are compared against cards in the Suspense, Discontinued Subscribers, Transfer, and Closed Accounts pads to find the matching...Para 12.5Certified lists showing the amounts received from each subscriber to a fund must be prepared using Form 27. These lists serve as the official record of all...Para 12.51Pink Transfer Lists (Form 43) recording transactions of subscribers temporarily transferred from other departments are sorted by the subscriber's parent de...Para 12.52While posting ledger cards on the front-feed machine, the Machinist simultaneously prepares an Audit Sheet (Form 47) on a blank paper fed alongside the car...Para 12.53When posting ledger cards for each department, the Machinist must follow a specific order: first, post cards that were present in both the current and prev...Para 12.54The accuracy of all ledger card postings must be proved every month for each district and department through the Audit Sheet. Part I of the Audit Sheet ver...Para 12.55After March accounts are posted and proved for a department, all ledger cards are collected regardless of district and arranged in serial order of account ...Para 12.56When provident fund accounts are maintained by hand (not by machine), each subscriber gets one complete folio in a ledger (Form 49). The accounts should pr...Para 12.57Each unit of account must have a separate ledger with consecutively numbered pages. The top section of each ledger folio (Form 49) contains important subsc...Para 12.58Under the hand posting method, the same rules for schedule receipt and posting apply as for machine methods. The poster must first confirm that all schedul...Para 12.59For hand-posted accounts, a Broadsheet (Form 50) is maintained for each ledger. It is posted directly from the ledger accounts (not from schedules), and it...Para 12.60After all individual district and departmental Broadsheets have been verified, their monthly credit and debit totals are entered into a consolidated Broads...Para 12.6For the Bombay Family Pension Fund specifically, subscription amounts must be shown in two separate columns in the certified list: one for the 'Widows Bran...Para 12.61For annual closing under the hand posting method, the instructions from Para 12.44(i) apply with necessary modifications. Interest for each individual acco...Para 12.62Contributory Provident Fund (CPF) accounts are maintained in a special ledger format (Form 54) when done manually. If machine posting is used, the accounts...Para 12.63In Contributory Provident Fund accounts, government contributions adjusted at year-end must be posted in the Broadsheet on a separate line from the subscri...Para 12.64A register of missing credits and debits must be maintained in Form 55 and closed every six months. Ledger cards are reviewed twice a year (after September...Para 12.65Unposted items — transactions that could not be posted to individual subscriber accounts due to insufficient information — must be aggressively controlled ...Para 12.66Most state governments use a 'collateral evidence' method to complete subscriber accounts with missing credits. Instead of waiting indefinitely to trace mi...Para 12.67Annual account statements must be prepared in Form 59 and sent to all subscribers by August 31 each year. Statements for gazetted officers are sent directl...Para 12.68A comprehensive review of all provident fund accounts must be conducted after the annual statements are dispatched, completed in three batches over a three...Para 12.69In some states, the maintenance of individual GPF accounts for Class IV employees has been delegated to departmental authorities (Heads of Offices) rather ...Para 12.7When the Hindu Family Annuity Fund sends a certified copy of a subscriber's application, the Accountant General must verify that it contains a specific dec...Para 12.70For GPF accounts maintained by departmental authorities, interest for each year is incorporated into the AG's records based on statements furnished by the ...Para 12.71The Accountant General (Accounts & Entitlements) office is responsible for four specific checks related to provident fund accounting: (1) verifying entries...Para 12.8Certified lists for the Postal Insurance and Life Annuity Fund must be prepared in Form 28. A key distinction is made between cash subscriptions received a...Para 12.9For the Postal Insurance and Life Annuity Fund, premiums and subscriptions are paid either in cash (at Post Offices only, not at treasuries) or by deductio...Para 13.1In states where the Accountant General issues pay slips to gazetted officers, the AG (A&E) office is fully responsible for authorizing and checking their p...Para 13.2Before issuing a pay slip for a gazetted officer, three things must be verified: (1) there is a sanctioned post, (2) the officer has been duly appointed to...Para 13.24Before a gazetted officer newly appointed to government service can receive a pay slip, the Accountant General's office must verify four essential document...Para 13.3The Accountant General (A&E) is generally not required to enforce rules about which service a particular post is reserved for. However, if the AG notices t...Para 13.33When gazetted government servants incur medical expenses that are reimbursable, they draw these amounts in their salary bills under the sub-head 'Allowance...Para 13.34Leave accounts of gazetted officers are maintained by the Accounts Officer. Before any administrative authority can sanction leave, it must first obtain a ...Para 13.37If a court issues an attachment order against the pay of a Defence Service officer currently in civil employment, the Accounts Officer must promptly inform...Para 13.39The Accountant General can authorize provisional (temporary) payments of pay, allowances, and leave salary to avoid hardship to officers when final sanctio...Para 13.4As a general rule, the Accountant General arranges payment of pay, leave salary, and allowances for gazetted officers through treasuries or other disbursin...Para 13.40When deductions are made from a gazetted officer's pay, the details must be noted in the 'Notes explanatory of peculiar payments' column of the Entitlement...Para 13.43The Accountant General (A&E) maintains a leave account for every gazetted officer whose entitlements are determined by the AG. The leave account is kept in...Para 13.44When a government servant is temporarily lent to another government (on deputation), a register in Form SY-52-A must be maintained to track the recovery of...Para 13.45Last Pay Certificates (LPCs) are formal documents prepared when a gazetted officer is transferred or returns from leave, certifying the last payment made a...Para 13.46When a gazetted officer is transferred from one Accounts circle to another, the outgoing Accounts Officer must send three key documents to the new Accounts...Para 13.47The statement of service (Form-66) sent during inter-circle transfers must show the officer's pay and allowances for the last 10 or 12 complete months as r...Para 13.48When a gazetted officer goes on foreign service (deputation to a non-government body or another government), all relevant details about the foreign service...Para 13.49Gazetted officers can draw certain personal advances directly from the treasury without prior authorization from the Accountant General, provided the prope...Para 13.50This group of paras (13.50-13.57) covers how advances to gazetted officers are handled. All sanctioned advances must be formally recorded in the Entitlemen...Para 13.5The Entitlements Register (Form 60) is the central record through which all pay and allowance payments to gazetted officers are controlled. Each officer ha...Para 13.6This para serves as a cross-reference, directing the reader to paragraphs 13.7 and 13.8 for detailed instructions on the form, opening, and maintenance of ...Para 13.60.2For Armed Forces officers and State Government servants, the date of birth must be recorded in the History of Services heading. For Armed Forces officers i...Para 13.61.2If directed by the Government, additional personal information may be recorded in the History of Services, including caste, tribe, state of domicile at app...Para 13.61.1The History of Services publication must not mention hereditary titles or non-gallantry awards against officers' names. However, medals or clasps for war s...Para 13.64By September 1st each year (after examining establishment books), the AG must submit to the Government a list (Form 69) of gazetted officers due to retire ...Para 13.65These instructions list the key duties of Accountants handling gazetted officers' records. They must verify legal entitlement to pay, check first payments ...Para 13.67Separate personal files must be maintained for each gazetted officer to record all correspondence relating to them. Other correspondence that is not office...Para 13.7The Entitlements Register in Form 60 is designed for six years of records. Each folio accommodates one gazetted officer with space for twenty changes of em...Para 13.8The Entitlements Register volumes should be organized by department — one set for Medical department officers, another for Education department officers, a...Para 13.9Officer names in the Entitlements Register must be entered alphabetically, with blank sheets left after each initial letter for future entries. When old re...Para 14.1Chapter 14 deals with pension verification and payment. The term 'pension' here includes gratuity unless explicitly distinguished. The AG's role is to veri...Para 14.13When pensions are shared between State and Central Governments, specific procedures ensure correct settlement. Pension Payment Orders must specify whether ...Para 14.14Any question affecting a government servant's pension or pensionable service should be resolved as soon as it arises, provided the relevant circumstances a...Para 14.15All Pension Payment Orders (PPOs) issued must be recorded in a register (Form 73), with each entry attested by an Accounts Officer. Separate registers are ...Para 14.17The AG may maintain a Treasury-wise Pension Payment Register (Annexure A) to track pension payments at each treasury, which is also used for preparing PPO ...Para 14.18The pension registers (Paras 14.15-14.17) must have ample space in the Remarks column for recording events like cancellation, cause of cancellation, date o...Para 14.19When processing applications for payment of pension arrears, the A&E office must obtain a certificate from the Treasury Officer stating the date and month ...Para 14.20This para is a cross-reference directing readers to Chapter 15 for detailed provisions relating to pension payment after pre-check in the office of the Acc...Para 14.21Gratuity payments are managed through Form 75, which serves as both a register and an audit record. When the AG receives a gratuity sanction order, the fir...Para 14.23Many Central and State Governments allow Heads of Offices to pay anticipatory pension (for up to 6 months, extendable by the AG) and anticipatory DCRG to r...Para 14.24The procedures for commutation of pension (converting part of the monthly pension into a lump sum) and the AG's responsibilities in connection with commuta...Para 14.25Separate registers in Form 73 must be maintained for three categories of territorial and political pensions: (1) pensions to families or servants of former...Para 14.26Before issuing Pension Payment Orders for territorial and political pensions, the AG must collect identifying information about the pensioner: parentage, r...Para 14.27When a group of territorial and political pensioners is managed by a single Political Officer, the Accountant General can approve a special streamlined pro...Para 14.28If the Accountant General decides that treasury-wise pension payment registers should be maintained for territorial and political pensions, these registers...Para 14.29This para lists the key duties that accountants must perform when handling pension payments. They must verify voucher forms and stamps, check income tax de...Para 14.30When a pension sanctioned by one State Government is actually paid in another state, the paying state's Accountant General debits the cost through the Inte...Para 14.6Pension payments must be made exactly as stated in the sanction order — to the specific persons named and in the exact terms specified. The Accountant Gene...Para 14.7To prevent delays in issuing Pension Payment Orders caused by outstanding government dues at retirement, most State Governments allow the last pay to be re...Para 14.8The Last Pay Certificate is not required before paying anticipatory pension, anticipatory gratuity (including death/retirement gratuity), or commuted pensi...Para 15.1When the Comptroller and Auditor General of India consents, the Accountant General (A&E) can perform the functions of a treasury at the state capital for d...Para 15.10When a pension bill is to be paid by cheque, the passed bill goes to the cheque writer who prepares a cheque for the net amount using the special pre-check...Para 15.11Bills to be paid in cash (limited to cases where basic pension does not exceed Rs. 300) follow a specific process. The passed bill is given to the payer, w...Para 15.12The AG's office maintains a fixed imprest (a standing cash balance) for making pension cash payments for both Central and State claims. If the imprest runs...Para 15.13The fixed imprest used for pension cash payments is recorded in the government accounts. For State pension payments made from this imprest, periodic adjust...Para 15.14The fixed imprest is treated as a Central permanent advance in the accounts. On the last day of every month, a Gazetted Officer in charge must physically c...Para 15.15At the end of each working day, the Branch Officer must draw a cheque in his own favour to replenish the imprest, so that the cashier always closes the day...Para 15.16The Branch Officer must verify the Register of Cheques Drawn against the physical cheque book daily. He checks that cheque numbers are consecutive, confirm...Para 15.17At the end of each day, the Register of Cheques Delivered and Cash Payment Register (Forms 84 and 85) must be totalled. A final total in both words and fig...Para 15.18The bank sends all paid (encashed) pre-check cheques back to the AG's office daily, along with separate schedules for Central and State payments. Each sche...Para 15.19After pension bills are paid and recorded in the Payment Register, a separate person (not the payer) enters these paid vouchers in the Register of Final Po...Para 15.2The Pre-check Pension Payment Department handles receiving and paying pension claims for pensioners drawing pensions in Calcutta (other than those paid thr...Para 15.20Paid cheques returned by the bank must be compared with entries in the Register of Cheques Delivered (Form 84) and ticked off. A monthly list of outstandin...Para 15.21The AG maintains a register (Form 88) that records daily cheque issuances and encashments, and tracks the outstanding balance of unpaid cheques at month-en...Para 15.3The AG's office maintains a Register of Pension in Form 102 for pensions paid after pre-check. This register serves the same purpose as the PPO file mainta...Para 15.4All pension payment authorisations from the AG's office counter are received in the Pension Pre-check Section, recorded in the relevant register, and the p...Para 15.5Every pension bill is received at a token counter where the presenter gets a brass token with a unique number. This number is noted on the bill, and bills ...Para 15.6.2The Bill Transit Register must be periodically examined by the Branch Officer in charge of the Pre-check Section. When checking pension bills, the accounta...Para 15.8When passed bills arrive at the Payment Section, they are sorted into 'Cash Payment' and 'Payment by Cheque' categories. For cheque payments, the token num...Para 15.9Token receipt and issuance is tracked in a Register of Token (Form 80). The cashier must verify the token stock daily, accounting for unredeemed tokens. Ev...Para 16.1Grants-in-aid can only be given to persons or bodies that are independent of the Government — one government department cannot give a grant to another depa...Para 16.10For Central Government grants to State Governments, utilisation certificates (UCs) follow specific rules: Central Ministries do not need to furnish UCs, St...Para 16.11The AG must maintain a Grant-in-Aid Register (Form 89) for each department. Every grant sanction must be entered immediately upon receipt and attested by s...Para 16.12Grant-in-aid vouchers (payment documents) must be posted in the Grant-in-Aid Register (Form 89) against the relevant sanction entry. When conditions are at...Para 16.14The Grant-in-Aid Register must be reviewed and submitted to the Branch Officer every quarter. Reminders are issued whenever utilisation certificates or ins...Para 16.6When assets are acquired using Government grants (wholly or substantially), the grantee cannot dispose of or repurpose those assets without prior Governmen...Para 17.1The Government of India provides yearly financial assistance to States and Union Territories as grants and/or loans for central and centrally sponsored dev...Para 17.2Each year, the Government of India pays advances to State Governments for implementing plan schemes. To finalise the actual Central assistance (i.e., settl...Para 17.3The AG (A&E) must provide a statement of plan expenditure figures for each year, reconciled with the State Government's own figures, to the AG (Audit) for ...Para 17.4Reconciliation of plan expenditure figures should begin as soon as the Finance Accounts and Appropriation Accounts for the year are finalised. The AG (A&E)...Para 17.6When furnishing audited plan expenditure certificates, the AG can exclude amounts held under objection (where DC bills or utilisation certificates are miss...Para 18.1The Indian Audit and Accounts Department has an internal audit and inspection framework to ensure accountability for both expenditure accuracy and work qua...Para 18.2It is critical to verify that all accounting processes are being correctly followed across the AG (A&E) office. This work should be assigned to an independ...Para 18.3The Internal Audit Section within the Accountant General's office is not meant to do original accounting work. Instead, it supplements the work of the Prin...Para 18.4The Internal Audit Section should be a small, experienced team that test-checks the work of other sections, detects defects, and suggests improvements. It ...Para 18.5This para provides the complete list of items that the Internal Test Audit Section must handle, along with how frequently each check should be performed. I...Para 19.10Central audit of vouchers is conducted by visiting Central Audit Parties from the Accountant General (Audit) office, and this audit takes place within the ...Para 19.1The audit of interest payments on Government borrowings is split between two bodies: the Accountant General (Audit) handles one part, and the Public Debt O...Para 19.2After the AG (A&E) office compiles the interest payment accounts, the vouchers are kept ready for the AG (Audit) to audit. Once audited, the accountant tot...Para 19.3Vouchers and their covering lists must be sent for further audit to the Public Debt Office of the RBI that has jurisdiction over the relevant treasury. The...Para 19.5When checking refund of revenue charges, the main thing to verify is that each refund is supported by a proper receipted voucher containing a certificate t...Para 19.6The procedure for drawing discount on stamps varies by state. In some states, the discount is recorded in a schedule against each sale item and signed by t...Para 19.7When scrutinizing Plus and Minus Memoranda of postal stamps received from treasuries, four key checks must be performed: verify the opening balance matches...Para 19.8All arrear claims that require the Accountant General's authorization under the state's financial rules must be processed through the A&E Office. This mean...Para 19.9In states where the Accountant General (A&E) handles the entitlement function for Gazetted Officers of the State Government, the pre-check of pay fixation ...
20 -
Para 20.10.1To avoid wasting time on minor objections, the Accounts Officer has delegated powers to forego recovery or write off small amounts within limits set by Sta...Para 20.1All objections related to accounting matters — such as missing sub-vouchers, missing contractor bills, or errors in treasury or divisional accounts — must ...Para 20.11When an objection raised during entitlement functions cannot be resolved between the AG and the executive authorities or administrative departments, the ca...Para 20.12If an Accounts Officer notices that a government servant has been underpaid or over-deducted, the officer must proactively bring this to the attention of t...Para 20.13Individual cases of serious financial irregularity need not be reported to the CAG unless the AG considers CAG intervention desirable. However, all serious...Para 20.14When the AG has been authorizing erroneous payments for a considerable time — whether due to a wrong interpretation of financial rules or simple oversight ...Para 20.15Cases of defalcation, loss, misappropriation, or embezzlement are handled by the AG (Audit). However, when such cases are finalized and a competent authori...Para 20.16Whenever the AG discovers a loss case where the Reserve Bank of India could potentially be held liable — either for its own operations on government accoun...Para 20.17If the State Government wishes, the AG should submit an annual review of treasury working in a format agreed upon mutually. The AG (A&E) prepares this revi...Para 20.18This para establishes that Part II of Chapter 20 deals with the detailed procedure for communicating accounting-nature objections to executive and controll...Para 20.19Objections and observations of accounting nature must be communicated as early as possible, but they must first be registered in the prescribed records (Ob...Para 20.2All objections and observations communicated by the AG's office must be written in courteous, impersonal language and must be clear and easy to understand....Para 20.20Trivial objections or those already waived by Accounts Officers should not be entered in the Objection Book. However, a separate office record of waived ob...Para 20.21Each Accountant General has the discretion to decide how to maintain the record of objections, as long as it follows any specific instructions in the Manua...Para 20.22Objections from each official year should be kept separate for easy review and tracking of clearance progress, even if clearance happens in a later year. O...Para 20.25Every individual objection must be tracked through prescribed records until it is either cleared or withdrawn. The Accountant General holds the Branch Offi...Para 20.27When an objection that was previously raised is later withdrawn — either because the AG reconsidered it or new information came to light — the disbursing o...Para 20.28When objections need to be collectively presented — whether to controlling authorities or the Legislature — they may need to be expressed in money values. ...Para 20.3Objections and observations about accounts or transactions must be communicated to disbursing and controlling authorities as quickly as possible. The Treas...Para 20.30Certain categories of objections do not require money values in the records. These include simple directions for future guidance, stamp deficiencies on oth...Para 20.31In most cases, objections should be communicated directly to the responsible officer through special printed objection memoranda or half-margin forms. The ...Para 20.32Two Objection Statements should be prepared each month: one for the first schedule of payments (which should reach the Treasury Officer before month-end to...Para 20.33Each Objection Statement must be signed by a Gazetted Officer or Section Officer before dispatch. The accountant must neatly post all items from the Statem...Para 20.34The return of Objection Statements by the Treasury Officer must be carefully monitored. Treasury Officers must return them within the prescribed time and c...Para 20.35.1When the Objection Statement is returned from the treasury, the Accountant must deal with it promptly. If money needs to be recovered from a Gazetted Offic...Para 20.35.2When a government servant who owes money moves to a different Accountant General's jurisdiction, the recovery request must be communicated through the Last...Para 20.36When the A&E office finds that pay or allowances were drawn incorrectly, the Accountant General orders recovery by sending a retrenchment slip (Form 94) to...Para 20.37The Objection Book is the permanent record maintained for each Treasury or Department Account. It records all objections raised during examination of payme...Para 20.38For objections that do not require the Treasury Officer to take action (such as overcharges in fund subscriptions or income tax), no amounts are entered in...Para 20.40The Suspense Account in the Objection Book has two columns — credits and debits — and entries can only be made with special sanction from the Gazetted Offi...Para 20.41.1The 'Items adjusted but awaiting clearance' section of the Objection Book tracks three types of items: those awaiting a detailed bill, those missing sub-vo...Para 20.41.2Cash remittances should not be recorded in the Objection Book even if their complete voucher is missing, because a separate register exists for tracking th...Para 20.42The 'Service Payments for Recovery' column in the Objection Book captures all sums booked to service heads where recovery orders have been issued. Even tho...Para 20.43As objectionable items are resolved — whether suspense items are cleared through credit or debit, uncleared items are finalized, or service payment recover...Para 20.44Every adjustment entry in the Objection Book must include a note in the 'How adjusted' column explaining the method used. The Section Officer must personal...Para 20.45In the Objection Book, each fragment of a partially resolved objection is recorded in the 'Mode of adjustment' money columns, and every entry in the Adjust...Para 20.46When an item initially marked as 'awaiting clearance' is later found to involve a real objection (for example, partial recovery is ordered), only the porti...Para 20.47If investigating an 'Awaiting Clearance' item reveals it actually belongs to the 'Suspense' category (for example, a deposit repayment voucher arrives but ...Para 20.48After dispatching Objection Statements on the second Schedule of Payments and Cash Account, the money columns of the Objection Book are totalled, the previ...Para 20.49A Broadsheet in Form 99 is maintained to track debits, credits, and balances under 'Objection Book Suspense Account' and 'Treasury Suspense'. Monthly posti...Para 20.50An Abstract of Objections in Form 100 must accompany each Objection Book. The previous year's balance is posted first as the preliminary balance and later ...Para 20.51The Branch Officer must carefully monitor all outstanding objections. Any item that remains unsettled for six months must be entered in a special register ...Para 20.52At the end of each financial year (after March closing), a comprehensive list of all outstanding objections must be prepared for each district, department,...Para 20.53The procedures described in Chapter 20 for maintaining Objection Books and Adjustment Registers apply equally to objections raised on items appearing in In...Para 20.54.2Under the alternative system, the Objection Statement is prepared in Form 101, which adds adjustment columns (normally found in the Objection Book) to the ...Para 20.54.5Under the alternative system, every adjustment must be simultaneously recorded in both the Adjustment Register and the Objection Statement. If the Objectio...Para 20.54.6The Abstract of Objections (Form 100) is still maintained under the alternative combined system. Both the Abstract and the Adjustment Register are closed o...Para 20.54.3Under the alternative combined system, the Objection Statement must include all objections that would normally go into the Objection Book. This means even ...Para 20.54.1Some A&E offices use an alternative system where instead of maintaining a separate Objection Book, they use the original Objection Statements themselves (f...Para 20.54.4The combined Objection Statement/Book system (alternative plan) does not apply to objections raised by certain specialized branches — specifically Gazetted...Para 20.6The primary responsibility for resolving objections lies with the disbursing officers, heads of offices, and controlling authorities — not with the AG's of...Para 20.7If the Government requests it, the AG must prepare summaries of outstanding objections in agreed formats and submit them on specified dates. These may incl...