Para 7.10 — MSO (A&E)
Original Rule Text
7.10 The receipts and payments at treasuries on account of Local Fund having banking accounts with Government are reported by Treasury Officers in plus and minus memoranda (see Article 120 of the Account Code, Volume II). The entries in these memoranda should be checked by the Accountant, special attention being paid to balances as a precaution against any fund overdrawing its account; see paragraph 7.1. Overdrawals should always be brought to the notice of Government.
What This Means
Local fund bodies that maintain banking accounts with the government have their transactions reported by Treasury Officers through plus and minus memoranda. The AG's accountant must check these memoranda carefully, paying special attention to balances to ensure no fund overdraws its account. If an overdrawal is detected — where a local body has spent more than its available balance — it must always be brought to the government's notice for corrective action.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Local fund transactions are reported via plus and minus memoranda from Treasury Officers
- 2The AG's accountant checks these memoranda for accuracy
- 3Special attention is given to balances to prevent overdrawals
- 4Any overdrawal by a local fund must be reported to the government
- 5This monitoring prevents local bodies from spending beyond their means
Practical Example
The District Education Fund has a balance of Rs. 8 lakh with the government treasury. The Treasury Officer's plus and minus memorandum for March shows receipts of Rs. 3 lakh and payments of Rs. 14 lakh, leaving a negative balance of Rs. 3 lakh. The AG's accountant flags this overdrawal immediately and brings it to the government's attention. The Education Department is directed to either deposit funds to cover the deficit or explain the unauthorized overdrawal.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are plus and minus memoranda?▼
Why is overdrawal by a local fund a serious issue?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.