Para 7.6 — MSO (A&E)
Original Rule Text
7.6 Ordinarily the opening of a banking deposit account or of a Personal Ledger Account is sanctioned by Government after consultation with the Accountant General. It is generally recognised that Government should not agree to the opening of such an account unless it is satisfied that the initial accounts of moneys in the Personal Ledger Account are properly maintained and are subject to audit.
What This Means
Opening a Personal Ledger Account (PLA) or banking deposit account requires Government sanction, which is given only after consulting the Accountant General. The Government should not approve such an account unless it is satisfied that the initial accounts of the money will be properly maintained and subject to audit. This ensures financial accountability over all personal deposit accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Opening a PLA requires Government sanction after AG consultation
- 2Government must be satisfied that accounts will be properly maintained
- 3The account must be subject to audit
- 4This acts as a gatekeeper to prevent unaccountable deposit accounts
Practical Example
A State Pollution Control Board requests the Government to open a Personal Ledger Account for managing environmental clearance fees. Before sanctioning it, the Finance Department consults the AG, who reviews the Board's accounting setup and confirms that they have adequate systems for maintaining records and that the account will be auditable. Only then does the Government approve the PLA.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a Personal Ledger Account (PLA)?▼
Why is AG consultation required?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.