Financial Management in Government The Duties Responsibilities of

Financial Management in Government - The Duties & Responsibilities of the Drawing & Disbursing Officers. By Sib Sankar Banik, W. B. A&A. S Internal Audit Officer Finance (Internal Audit) Department

Introduction: “Drawing and Disbursing Officer” means an officer of an establishment who is authorised by the Government to draw money from the Government Account and disburse the same for the purpose for which it was sanctioned [T. R. 4. 027 of W. B. T. R. 2005]. The Drawing & Disbursing Officer (DDO) is the main pillar of the financial management in the State Government Office. Financial discipline of the State Government mainly depends on the proper functioning of the DDO. So, the role of the DDO is very important in the State Government Office. His duties and responsibilities are very crucial [T. R. 4. 121, 4. 123 & 4. 124]. No Bill, for payment by or on behalf of the Government, can be drawn from the Treasury without the signature of the DDO.

Appointment & Posting of DDO: A) For the newly established Office or for the sanction of new DDO: Concerned Administrative Department with the concurrence of Finance Department shall issue Government Order for declaration of a new DDO for a new office. Three sets of Specimen signature of the DDO along with the Govt. Order should be forwarded to the Accountant General (A&E), West Bengal. The Accountant General (A&E), West Bengal shall authorise such Officer to draw fund from the concerned Treasury [T. R. 4. 018 & 4. 019].

Cont… B) For changing of a Drawing & Disbursing Officer on permanent basis: Concerned Administrative Department with the concurrence of Finance Department shall issue Government Order for changing of the existing DDO on permanent basis from one Group-“A” officer to other Group. A officer, for example, from Head of office to other officer under his control like Accounts Officer or from Deputy Secretary to Assistant Secretary i. e. when the designation of Drawing & Disbursing Officer is changed permanently [T. R. 4. 028 (2)].

Cont… C) For temporary transfer of the charge of DDO: Concerned Head of the Department shall issue Government Order for changing of a DDO as a stop-gap measure when the regular DDO goes on leave or is transferred and the new incumbent has not joined and the post is lying vacant i. e. the designation of the DDO is changed temporarily such as from Assistant Secretary to Deputy Secretary [T. R. 4. 028 (3)].

Cont… D) For temporary taking over the Charge of DDO: When Head of Office himself is not the DDO and the regular DDO goes on leave or is transferred and the new incumbent has not joined then the Head of Office shall issue an order directing another Group-”A” officer under his control to take the charge of the Drawing & Disbursing Officer as a temporary measure in such cases the designation of the Drawing & Disbursing Officer shall not be Changed [T. R. 4. 028 (4)].

Cont… E) For delegation of DDO power: When Head of office himself is a DDO and due to his busy schedule in other work he authorise, under rule T. R. 4. 028 (1) of WBTR 2005, any other Group-“A” officer under his control to sign the Bills for him as a temporary or permanent measure, in such cases the authorized Group -“A” Officer shall sign for and on behalf of Head of office. For example: N. D. C. , For Collector [T. R. 4. 028 (1)].

Functions, Duties and Responsibilities of the DDO: 1) Regarding preparation of Budget: The DDO shall prepare the Budget for the next Financial Year within September in each year. Statement of expected expenditure under each detail heads of account along with a summary sheet showing the Actual Expenditure of the previous year, Budget Provisions of the current year, Revised Budget of the current year and Budget Estimate for the next F. Y. should be prepared and sent to the concerned fund sanctioning authority. In case of any major increase he should justify his proposal. At the end of the Financial Year the DDO should also submit the Net Grant Statement to the fund sanctioning authority.

Cont… 2) Regarding Allotment: Fund under certain Heads of Account are allotted in favour of the Head of Office or the DDO for each financial year. The allotment of fund should not be considered as sanction of the expenditure. Normally allotments under Non-Plan [NP] & state Plan [SP] heads are released in three instalments - 25% for the 1 st. Quarter on 31 st March, then 50% for 2 nd. & 3 rd. Quarters on 30 th June and the balance 25% for the last quarter on 31 st December in each year.

Contd … The DDO shall maintain an Allotment Register wherein the allotment received, Bill-wise expenditure, progressive total and balance under each detail head (upto 19/17 digit) should be reflected for proper monitoring of the fund. Except under some exceptional case, no Bill can be drawn from the Treasury without allotment of fund. The DDO shall furnish month-wise B-Statement for the expenditure to the fund sanctioning authority after verification of such drawal from the concerned Treasury. He shall obtain statement of bills drawn from the treasury in each month for verification against fraudulent drawal of bills.

Cont… 3) The head of account is very important for proper classification and booking of the expenditure. DDO should ensure that all bills and challans exhibit proper head of accounts upto detail classification along with Demand No. and Department Code as per budget provision of that year. Special emphasis should be given on Plan Status. No bill shall be accepted at treasury if such bill exhibits a head of account & Deptt. Code that is not commensurate with the valid head of account as per that year budget. Regarding placement of fund to a new head of account or placement of fund to a head of account where there were no budget provision at that year, that should separately and specifically be informed to the Directorate of Treasury, A. G. (A&E), W. B. , and Finance (Budget) Deptt.

(4 A) General 4) Regarding Drawal of Bill: Following points should be taken into consideration prior to drawal of the Bill by the DDO: ◦ Admissibility, entitlement, eligibility of the claim. ◦ Authority and authenticity of the Claim/Sanction. ◦ Arithmetical accuracy of the Bill. ◦ Proper Head of Accounts (Upto 19 / 17 Digits) / Plan Status (A. P. /11 th. Plan) ◦ Separate Bill for Separate head of Account ◦ Precaution against double drawal of the Bill. ◦ Entry in the allotment Register. ◦ Entry in the Bill Register and Bill Transit Register ◦ Timely preparation of the Bill for Recoupment of Permanent Advance.

Cont… ◦ Timely preparation of the Bill for Adjustment of advance. ◦ No Bill can be drawn without allotment. Some relaxation is allowed for some urgent nature of bills for the 1 st. & 2 nd. quarters of the F. Y. ◦ No advance (for Contingency Bill) can be drawn without the prior approval of the Fin. (Gr. -T) Deptt. ◦ Deduction of Tax at source as per relevant Rules. ◦ Maintenance of GPF Ledger of Group-D Staff. ◦ Maintenance of other Registers such as Advance, Recovery of Advance, Sanction of claims etc. ◦ Timely submission of Bill at Treasury. ◦ Monitoring of the Bills at Treasury. ◦ Collection of Cheque from Treasury.

(4 B) For Establishment Bill & Personal Claim Bill: Sanctioned Strength, Appointment Order (M. C. & P. V. R. ), Transfer Order, LPC, Pay Fixation, Working/Absentee Statement, Increment Order, Leave Order, declaration regarding HRA, Non-Drawal Certificate, Sanctioned Strength (Post Sanctioned under Plan Head 11 th Plan), Recoveries, Tax Calculation as per relevant Government Orders. For T. A. Bill: Sanction of the Tour (Sanction for tour to other State- Chief Secretary/ Other Country. Central Govt. ), Tour Diary, entitlement as per T. A. Rules. GPF and other personal Claim: Sanction Order, Record for recoveries. Grant-in- Aid: Sanction Order, Utilisation Certificate of previous Grant.

(4 C) For Contingency Bill: The expenditure has either been incurred within the delegated financial power of the competent Sanctioning Authority in terms of D. F. P. Rules, 1977 or as per Sanction Order issued with the concurrence of the Fin. Deptt. Purchase Policy: Observation of Tender Quotation formalities (Cash Purchase upto Rs. 500, Rs. 50120000 -Quotation, above Rs. 20000 -Tender) Economic Circulars and other relevant Govt. Rules and Orders have to be observed prior to placing of the Order for Purchase. Stock Certificate and Certificate regarding quantity & quality of the Goods purchased or Certificate regarding service rendered has to be furnished.

(5)Maintenance of Cash Book: DDO shall maintain the Cash Book properly and upto date. All receipts and all payments, by way of Cash or Cheque, must be entered into Cash Book daily. Payment shall be made after proper identification of the Claimant. Proper Stamped Receipt should be obtained from the Claimant. Maintenance of Double-lock cash chest and keeping one key with the casher and other key with DDO.

Cont… Physical Verification of Cash Balance with the Cash Book regularly. Analysis of cash balance. Refund of undisturbed cash under proper head of account. Collection of Monthly Statement of Bills drawn from Treasury and verification with the Cash Book. Verification of Receipts / Deposits at Treasury. Verification of the Cash Book with signature of the DDO and the Head of Office as token of verification.

(6)Other Points: Sanction Order for Civil /Electrical Works– Technical Sanction – Administrative Approval – Financial Sanction (Exe. Engineer) - (Admn. Deptt) - (Fin. Deptt) - Issue of LOC (CPWD Code) Recoveries of overpayment from Salary / Gratuity: Recoveries of overpayment should be made by way of deduction and transfer credit to proper head of account (through Challan or Schedule) from the Gross payment. Overpayment amount can also be refunded by depositing money in T. R From No-7 in Treasury link Bank. The head of account in both the cases should be the head of account from where the payment was actually made (detail head: 70 -Deduct Refund) if relates to same financial year.

Cont… GISS 87: Accounting Year November. Insurance Fund from appointment and saving fund from Nov. For payment: separate Bill for Insurance and separate Bill for Saving. Those who converted from 83 Scheme to 87 Scheme- One Bill for the entire amount of saving Fund (83&87) with interest (8011 -00 -107 -005). GPF subscription: Accounting Year March to February (Pay Month) (for increase or decrease of Subscription: March Pay Bill. ) Arrear Claim: Upto 3 Yrs- Head of Office, 3 -6 Yrs - Head of Deptt. , above 6 Yrs-Administrative Department.

Cont… For Loss of Receipt: No duplicate Receipt, Certificate of Receipt from the concerned Treasury on payment of Rs. 10 under head ‘ 0070’ [T. R. 3. 10]. Refund of Revenue: Order of the Admn. Deptt. / Finance Department [T. R. 4. 199 (2)] or general authorisation from the concerned Deptt. Bill should be presented through regular DDO Loss of Token: FIR, Deposit head’ 0070’, Apply to Treasury. Rs 10 under Payment to NGO: Through regular Govt. DDO.

Cont… Account Payee Cheque: For Non-Govt. Person above Rs. 2500 / Govt Employee above Rs. 20000. Loss of Cheque: FIR, Stop Payment - Bank, Apply to Treasury for re-issue of Cheque. Validity of Cheque: 3 months after the month of issue (including LF/PF Cheques). Deliver the Cheque as early as possible. After June of next F. Y. no revalidation of Cheque. Prefer new Bill with original Cheque Cancellation Memo. Inclusion of Departmental Code, Demand No in each Allotment Order, Bill and separate issue Register for Financial Sanctions issued from F. Y. 2005 -06.

Cont… Bill Register / Allotment: March Pay Bill. Drawal of Contingent (unforeseen) Exp. From the Head’ 8000’-to be Adj. By AG. Deposit Account: Fund not required for immediate payment. Maintenance of Schemewise Register. By Transfer Bill with Challan for credit to proper head. Security Deposit / Ernest Money: Deposit & Refund thereof.

Conclusion The DDO shall guide and advice the Head of Office regarding all financial matter. He shall maintain and preserve the Cash Book, all Registers, Records, Bills and Vouchers properly for audit purpose and arrange to give satisfactory reply to the audit queries.

Thank You…