Para 3.8.23 — MSO

3.8.23 Deposit of funds by Government and autonomous bodies such as the DRDAs, Zila Parishads (ZPs), etc. responsible for implementing schemes in the State Public Account in the form of revenue deposits and civil deposits is against the ethos of sound financial management and contrary to the objectives of setting up DRDAs and ZPs, which are supposed to maintain their accounts with banks. Instances of State Finance Departments specifically directing these implementing agencies to deposit their funds in the Public Account should be commented upon after scrutiny of the Secretariat files. DRDAs, District Collectors or autonomous agencies also retain large unspent balances of funds year after year. An analysis of the annual availability of funds for implementation of the project/scheme taken up for review should include details of deployment of unutilized funds, indicating separately the opening balance, receipts during the year, utilization and closing balance, in order to establish the temporary or permanent transfer of funds to Personal Ledger Accounts or deposits and their subsequent utilization. If the funds are deposited in bank accounts, the basis of selection of the bank

(s) as well as the accounting and utilization of the interest earned from such deposits should also be examined. Accountants General should trace the flow of funds from the Central Government to the State Government and to various executing agencies to establish their end use and diversion or misappropriation at each level. Instances of funds being merely retained in Personal Ledger Accounts, civil deposits, banks etc. should be specifically highlighted.