Para 12.68 — A comprehensive review of all provident fund accou
Original Rule Text
12.68 A review of the Provident Fund Accounts should be conducted after the despatch of the annual account in three batches so as to complete it in a cycle of three years. The scope of the review should be as follows:-
(i) to see that there are no cases of omission to open ledger accounts or cases where double accounts have been opened for the same subscriber; for this purpose, a census of the ledger cards (where Fund Accounts are maintained by machine posting) should be taken and agreed with the number of subscribers to the fund, including subscribers who have discontinued their subscriptions;
(ii) to check in detail one month's credits in the ledger accounts of each department with reference to the schedules, the selection of the month for each department being made by the officer in charge of Internal Audit Section;
(iii) to examine generally the credits for the remaining 11 months appearing in the ledger accounts and to see that the reasons for non-recovery or irregular
recovery (short or excess) of advances and subscriptions are properly recorded therein;
(iv) To check the debit postings of the whole year with reference to vouchers;
While exercising this check it should inter alia be seen whether debits on account of withdrawals for financing life insurance policies have been regularly received in the relevant ledger accounts from year to year.
(v) to see that the balances are correctly carried forward. In conducting the review it should be seen that:-
(a) the instruction in paragraph 12.32 are observed.
(b) the accounts of subscribers who have ceased to be in service have been promptly closed and refunds authorised.
(c) there has been no omission to issue supplementary refund orders in case where credits have been undisbursed.
(d) there has been no omission to transfer the balances of the subscribers who have quitted service to "Unclaimed Deposits" in March Final Accounts under the rules of the Fund.
# G.P.F. ACCOUNTS OF CLASS IV EMPLOYEES
What This Means
A comprehensive review of all provident fund accounts must be conducted after the annual statements are dispatched, completed in three batches over a three-year cycle. The review checks for missing or duplicate accounts through a census, verifies one month's credits in detail against schedules, examines the remaining 11 months' credits generally, checks all debit postings against vouchers for the whole year, and verifies balances are correctly carried forward. It also ensures that accounts of separated employees are promptly closed, supplementary refund orders are issued where needed, and unclaimed balances are transferred as required.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Review is conducted in 3 batches over a 3-year cycle after annual statement dispatch
- 2Census of ledger cards is conducted to detect missing or duplicate accounts
- 3One month's credits are checked in detail (month selected by Internal Audit officer)
- 4All 12 months' debits are checked against vouchers
- 5Balances carried forward are verified for accuracy
- 6Accounts of separated employees must be promptly closed with final payments or transfers
- 7Insurance policy withdrawal debits are checked for regularity year-over-year
Practical Example
In the second year of the cycle, the Internal Audit Section reviews the Public Works Department's GPF. The officer selects July for detailed credit verification — every July subscription entry is checked against the original schedule. For the remaining 11 months, a general review flags 12 cases of irregular subscriptions. All 456 withdrawal vouchers for the year are checked against debit postings. The census reveals one duplicate account (two cards for the same subscriber) which is merged. Three employees who retired in November still have open accounts — final payment orders are immediately initiated.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the review spread over a three-year cycle instead of done annually?▼
Why is only one month's credits checked in detail while all debits are checked?▼
What happens to unclaimed balances of separated employees?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.