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Appropriation Accounts

Appropriation Accounts. Session Overview.

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Appropriation Accounts

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  1. RTI Allahabad Appropriation Accounts

  2. RTI Allahabad Session Overview Under the Constitution of India read with Section 11 of the CAGs (DPC) Act, 1971, the CAG is required to prepare, for the Central Government, for each State Government and for the Government of each of the Union Territories with separate Legislative Assemblies, Accounts, that is accounts of the expenditure (both voted and charged) of the Government for each financial year.

  3. RTI Allahabad Session Overview These accounts include in the case of accounts compiled by the Comptroller and Auditor General of India, Appropriation Accounts

  4. RTI Allahabad Session Overview Appropriation Accounts indicate the appropriations sanctioned for each grant by concerned legislature (Parliament/State Legislature) and actual expenditure booked against that appropriation along with reasons for any excess and savings, if any.

  5. RTI Allahabad Session Overview Appropriation Accounts indicate the appropriations sanctioned for each grant by concerned legislature (Parliament/State Legislature) and actual expenditure booked against that appropriation along with reasons for any excess and savings, if any.

  6. RTI Allahabad Session Overview Appropriations are sanctioned by the legislature for gross amounts (i.e. excluding deductions and recoveries) and consequently gross expenditure against each grant is indicated in the Appropriation Accounts. Finance Accounts, on the other hand, show net expenditure under different heads after taking into account deductions and recoveries.

  7. RTI Allahabad Session Overview During this session we will discuss: Objective and concepts underlying Appropriation Accounts; Form and Content of Appropriation Accounts; Reconciliation of figures appearing in the Finance Accounts with those appearing in the Appropriation Accounts.

  8. RTI Allahabad Learning objectives By the end of the session, the learner will be able to define the objective and concept of Appropriation Accounts of the Government. The learner will also be able to state scope, form and arrangement of material in Appropriation Accounts and reconcile the expenditure indicated in the Appropriation Accounts with the expenditure indicated in the Finance Accounts.

  9. RTI Allahabad Objective and Concept Constitution of India has well defined provisions relating to financial matters of the Union Government and of State Governments. Article 266 (1) defines the ‘Consolidated Fund of India or of the State concerned’ and what can be credited to the fund.

  10. RTI Allahabad Objective and Concept Article 266 (3) provides that ‘no moneys out of the Consolidated Fund of India or the Consolidated Fund of a States shall be appropriated except in accordance with law and for the purpose and in the manner provided in this Constitution’.

  11. RTI Allahabad Objective and Concept The procedure for appropriation of moneys out of the Consolidated Fund of India for meeting out expenditure of the Government of India is laid down in Articles 112, 113, 114, 115 and 116 of the Constitution. Similarly, procedure for appropriation of moneys out of the Consolidated Fund of a State for meeting the expenditure of that State is prescribed in Articles 202, 203, 204, 205 and 206 of the Constitution of India.

  12. RTI Allahabad Objective and Concept Under Article 112 (1), the President is required to lay before Parliament each year an ‘Annual Financial Statement’ containing the estimated receipts and expenditure of the Government of India for that year. Under Article 112 (2) the ‘Annual Financial Statement’ shall show the sums required to meet expenditure described by the Constitution as charged on the Consolidated Fund of India and other expenditure and distinguish expenditure on revenue account from other expenditure.

  13. RTI Allahabad Objective and Concept Under Article 113(2) so much of the estimates of expenditure, included in the ‘Annual Financial Statement’ to meet expenditure other than charged expenditure shall be submitted in the form of demand for grants to the House of People for approval. Under Article 114(1) after the demands for grants have been approved, a bill shall be introduced to provide for appropriation out of the Consolidated Fund of India moneys required to meet the charged expenditure and grants approved in the Demand for Grants.

  14. RTI Allahabad Objective and Concept Article 114(3) forbids that no money shall be drawn from the Consolidated Fund of India except after appropriations made by law (read with the approval of Parliament) in accordance with the provisions of Article 114.

  15. RTI Allahabad Objective and Concept From these Constitutional provisions it is clear that the Government can draw money from the Consolidated Fund of India only after appropriations have been approved by Parliament as per procedure prescribed in the Constitution. Drawal of any money out of Consolidated Fund of India without the approval of Parliament is, thus, a violation of the Constitution.

  16. RTI Allahabad Objective and Concept Parliament needs an assurance or a report that its mandate exercised through the Appropriation Act has been followed and that there has been no infringement of the Parliamentary control over drawals from the Consolidated Fund of India.

  17. RTI Allahabad Objective and Concept Appropriation Accounts is a mechanism through which appropriations approved by Parliament and expenditure incurred by the Government out of the Consolidated Fund of India is submitted to the Parliament indicating therein any expenditure in excess of appropriation, expenditure on schemes without parliamentary approval, major savings in appropriations indicating unnecessary appropriations submitted to Parliament, etc.

  18. RTI Allahabad Objective and Concept Where the Comptroller and Auditor General of India maintain the accounts, he is also responsible for preparation and submission of the Appropriation Accounts (as per Section 11 of the CAG’s (DPC) Act, 1971.

  19. RTI Allahabad Objective and Concept (a) that the moneys shown in the accounts as having been disbursed were legally available for, and applicable to, the service or purpose to which they have been applied or charged; (b) that the expenditure conforms to the authority which governs it; and (c) that every appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority.

  20. RTI Allahabad Objective and Concept The Finance Accounts which present the general accounts of the Government are intended to supplement the accounts separately presented in the form of Appropriation Accounts for each grant and charged appropriation included in the Appropriation Acts passed by the Legislature.

  21. RTI Allahabad Form and Content The Appropriation Accounts are prepared according to the nomenclature indicated in the Demands for Grants, as approved by legislature, showing the:

  22. RTI Allahabad Form and Content Original Appropriations approved by legislature, supplementary appropriations, surrenders and re-appropriations distinctly; Actual expenditure against the sum total of above; Excess (+) or saving (-) under each head.

  23. RTI Allahabad Form and Content Since Appropriation Act and Demands for Grants are also prepared according to the constitutional provisions, the Appropriation Accounts have to show separately charged and other expenditure and revenue and capital expenditure.

  24. RTI Allahabad Form and Content The Appropriation Accounts are in three parts: Part-I- Summary of Appropriation Accounts and audit certificate of the Comptroller and Auditor General of India; Part-II-Detailed Appropriation Accounts;

  25. RTI Allahabad Form and Content Part-III-Appendices, containing two appendices on expenditure met out of Advances from Contingency Fund and Grant-wise details of Estimates and Actuals adjusted in the accounts in Reduction of Expenditure.

  26. RTI Allahabad Part-I-Summary of Appropriation Accounts A summary of Appropriation Accounts showing the total amount of funds (original and supplementary) provided by the Legislature under each voted grant and charged appropriation separately for revenue and capital, actual expenditure incurred against each grant. The summary is followed by the grand total of the amount of Grant/ Appropriation (under Revenue and under Capital) and against Voted Grant and Charged Appropriation.

  27. RTI Allahabad Part-I-Summary of Appropriation Accounts The summary is concluded with a reconciliation statement of expenditure indicated in the Appropriation Accounts with the expenditure indicated in the Finance Accounts.

  28. RTI Allahabad Part-I-Summary of Appropriation Accounts The summary concludes with the certificate of the Comptroller and Auditor General of India. The format of certificate (as per appropriation Accounts of Government of Uttar Pradesh for the year 2013-14) is as under:

  29. RTI Allahabad Part-II-Detailed Appropriation Accounts The Appropriation Accounts are prepared strictly according to the nomenclature used in the Demands for Grants as approved by the Legislature. Grants/appropriations and actual expenditure are included in these Accounts upto sub-head level. The Accounts contain following four columns:

  30. RTI Allahabad Column 1- deals with the Original (indicated by letter ‘O’), Supplementary (letter ‘S’), Demand for Grants as Voted and Charged on the Consolidated Fund. The provision and actual expenditure on Plan and Non-Plan are totaled up under each sub-head and reflected as a single figure. Re-appropriation of funds from one head to another head within Revenue Section or within the Capital Section is indicated by letter ‘R’ or ‘-R’. The ‘O’, ‘S’ and ‘R’ are indicated separately in Column–I.

  31. RTI Allahabad Coulumn-2 Coulumn-2-indicates the total grant or appropriation i.e. the sum total of ‘O’, ‘S’ and ‘R’.

  32. RTI Allahabad Column-3 Column-3- indicated the actual expenditure incurred during the year as obtained from the annual accounts.

  33. RTI Allahabad Coulmn-4 Coulmn-4- indicates the excess expenditure (as compared to total grant or appropriation as (+) and saving as (-) between the figures of column (2) and (3).

  34. RTI Allahabad Part-II-Detailed Appropriation Accounts (Cont..) The re-appropriation orders incorporated in column (1) are to be explained giving reasons. Similarly, reasons for excess and savings in column (4) are to be explained with reference to the total grant. The Accounts are prepared separately for Revenue and Capital Sections and exhibit charged appropriations and voted expenditure separately.

  35. Part-III-Appendices Appendix-I Appendix-II

  36. RTI Allahabad Appendix-I In this appendix, expenditure met out of advances from the Contingency Fund, under each grant, not recouped to the Fund till the close of year is included.

  37. RTI Allahabad Contingency Fund is placed at the disposal of the President/Governor to meet any unforeseen and urgent expenditure. The Fund is recouped from Consolidated Fund, as and when occasion arises. Legislative control over expenditure from the Contingency Fund is exercised appropriation to recoup the fund are presented to legislature. This appendix brings to the notice of Legislature expenditure met out of the Contingency Fund, which has not been recouped during the year and has, thus, escaped the scrutiny of Legislature.

  38. RTI Allahabad Appendix-II In this appendix grant-wise details of estimates and actual in respect of ‘Recoveries Adjusted in the Accounts in Reduction of Expenditure’ are included. Actual recoveries under Revenue and Capital are compared in this statement with the budget estimates to work out the ‘more recoveries’ or ‘less recoveries’.

  39. RTI Allahabad Responsibility for Preparation The Appropriation Accounts relating to State Governments are prepared by the respective Accountants General (A&E) except in case of the State Government of Goa and Union Territory Government of Pondicherry.

  40. RTI Allahabad Check of Accounts Checked by ITA section of A&E office; Audited by Accountant General (Audit), who also gives clearance for printing of the Accounts. It is also essential that the Accountant General (A&E) and Accountant General Audit should co-ordinate the work of preparation of the annual accounts and the Audit Report and checking of the accounts by Accountant General (Audit) in such manner that the printed copies of all the three documents are forwarded simultaneously to the Comptroller and Auditor General for countersignature/ signature.

  41. RTI Allahabad Flow of Statements/Grants from A&E to Audit (15 July-17 August) Return by Audit (24 July-21 August) Vetting of ‘Notes to Accounts’ by GA Wing (----) Attending to Audit observations (21 August-31 August) Return of vetted ‘Notes to Accounts’ by Audit (----) Draft certification by AG (Audit) (01 September-07 September) Vetting of Audit Certificate by Report State Wing- Approval of Headquarters (with modification/correction etc) (04 September-10 September) Modify accounts based on RS Wing observations and making available ‘print ready’ version (in pdf format) to Audit (10 September-15 September) Signing of Audit certificate by the CAG of India (21 September-30 September) Time schedule for preparation and submission of Accounts for the year 2014-15

  42. RTI Allahabad Certificate of the Accountant General (A&E) The Accounts of Government of……………..…..for the year…….…forwarded herewith have been prepared by me in accordance with the requirement of Article 149 of the Constitution of India read with the provisions of Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, I have obtained all the information and explanations wherever necessary. Subject to the observations in this compilation, I certify to the best of my knowledge and belief that these accounts are correct statement of the receipt and disbursements of the Government of……………………….for…….…… Accountant General (A&E)

  43. RTI Allahabad Certificate of the Accountant General (Audit) The Appropriation Accounts of…….for the year………..have been examined by me. On the basis of the information and explanations that my officers required and have obtained, and according to the best of my information as a result of test audit of the accounts, I certify, in pursuance of provisions of Article 149 and 151 of the Constitution of India and the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, that these accounts are correct subject to observations in the Report of the Comptroller and Auditor General of India on the Accounts of the Government of………(Civil) for….. Accountant General (Audit)

  44. CAG’s Certificate This compilation containing the Appropriation Accounts of the Government of Uttar Pradesh for the year ending 31st March 2014 presents the accounts of the sums expended in the year compared with the sums specified in the schedules appended to the Appropriation Acts passed under Articles 204 and 205 of the Constitution of India. The Finance Accounts of the Government for the year showing the financial position along with the accounts of the receipts and disbursements of the Government for the year are presented in a separate compilation. The Appropriation Accounts have been prepared under my supervision in accordance with the requirements of the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971 and have been compiled from the vouchers, challans and initial and subsidiary accounts rendered by the treasuries, offices, and departments responsible for the keeping of such accounts functioning under the control of the Government of Uttar Pradesh and the statements received from the Reserve Bank of India. Appropriation Accounts RTI Allahabad 44

  45. CAG’s Certificate The treasuries, offices and/or departments functioning under the control of the Government of Uttar Pradesh are primarily responsible for preparation and correctness of the initial and subsidiary accounts as well as ensuring the regularity of transactions in accordance with the applicable laws, standards, rules and regulations relating to such accounts and transactions. I am responsible for preparation and submission of Annual Accounts to the State Legislature. My responsibility for the preparation of accounts is discharged through the office of the Accountant General (A&E). The audit of these accounts is independently conducted through the office of the Principal Accountant General (General & Social Sector Audit) in accordance with the requirements of Articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971, for expressing an opinion on these Accounts based on the results of such audit. These offices are independent organizations with distinct cadres, separate reporting lines and management structure. Appropriation Accounts 45

  46. CAG’s Certificate The audit was conducted in accordance with the Auditing Standards generally accepted in India. These Standards require that we plan and perform the audit to obtain reasonable assurance that the accounts are free from material misstatement. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. On the basis of the information and explanations that my officers required and have obtained, and according to the best of my information as a result of test audit of the accounts and on consideration of explanations given, I certify that, to the best of my knowledge and belief, the Appropriation Accounts read with observations in this compilation give a true and fair view of the accounts of the sums expended in the year ended 31st March 2014 compared with the sums specified in the schedules appended to the Appropriation Act passed by the State Legislature under Articles 204 and 205 of the Constitution of India. Points of interest arising from study of these accounts as well as test audit conducted during the year or earlier years are contained in my Reports on the Government of Uttar Pradesh being presented separately for the year ended 31st March 2013. Appropriation Accounts 46

  47. RTI Allahabad Correction of Errors Utmost care to be taken to avoid errors; Any error noticed in the printed copies should be neatly corrected in manuscript in the copies sent to the CAG. Where the number of errors is large, the errata should be printed after an intimation of the documents having been signed by the CAG is received. This will enable the AG (A&E) to incorporate in the errata any errors, which may be pointed out by the CAG.

  48. RTI Allahabad Correction of Errors No correction slip should be issued after the Accounts and Reports have been forwarded to Government. If a serious error or misprint comes to notice after the documents have been forwarded to Government, it should be immediately brought to the notice of the CAG. If it is decided to issue a correction, the correction slip will be issued in the name of the AG who is responsible for the preparation of the Accounts, but it should not bear any date. The Accountant General should ensure that any such correction slip issued is pasted in the copies signed by the CAG which are to be laid on the table of the legislature. No correction slips can be issued after the documents are laid before the legislature; if any errors are noticed they should be reported to the Comptroller and Auditor General with an explanation for the delay in noticing them.

  49. RTI Allahabad Confidential Accounts Since Appropriation Accounts and Finance Accounts are to be presented to the State Legislature along with the Audit Report, they cannot become ‘Public’ until they have been laid on the table of the House. It is, therefore, necessary to guard against the disclosure to the public and press till their presentation to the Legislature. The Accounts and all correspondence relating to them should therefore be classified as confidential till that time.

  50. RTI Allahabad General Checks It is to be ensured that figures of 'Provision/ Expenditure/ Excess/Saving' as given under 'Summary of Appropriation Accounts' tally with those given under individual "Grant/ Appropriation-wise Accounts". The classification should follow the budget and no unauthorized head should be opened. The amounts surrendered as shown in the "Summarized Appropriation Accounts" should agree with those worked out in the "Detailed Appropriation Accounts".

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