Regional Training Institute, Ranchi Structured Training Courseware on Treasury Inspection

1. Regional Training Institute, RanchiStructured Training Courseware on Treasury Inspection Session – 1Overview of Functioning of Treasury

2. Learning Objectives • At the end of the session, participants will be able to explain the • Importance of Treasury • Its organisational setup • Its main functions

3. Treasuries – An Introduction • Cash transactions of Government carried out through Treasuries • Collection, Disbursement and Accountal of Resources • District • One District Treasury • Sub-Treasuries, under District Treasury

4. Types of Treasuries/ Sub-Treasuries • Banking Treasury • Cash receipt/ payment handled by bank branch, attached to treasury • Non-Banking Treasury • Handles both cash receipt/ payment, as well as accounting • Segregation of duties between cash handling and accounting

5. Rendering of Accounts • Treasury renders account of receipts and payments to AG • Non-compiled Accounts • Booked under 8658-Suspense, 111- DAA • DAA cleared by AG Office Compilation • Net Accounting, except • Book Transfers for specified heads by Treasury • Gross Accounting for such heads

6. Rendering of Accounts (Contd.) • Two accounts per month • 1st List • 2nd List • Sub-treasury accounts included in District Treasury Accounts • Computerised systems in Treasuries

7. Cheque-Drawing Officers • Forest, PWD etc. • Attached to Treasury • Reconciliation with Treasury • Issue cheques, collect receipts • Letter of Credit System • Monthly Accounts directly to AG

8. Drawing & Disbursing Officer (DDO) • Lowest Government unit for receipts/ payments • For payments • Submits bills to treasury • For receipts • Submits challans to treasury, with cash • DDO creation by Finance Department/ AG • Control on specimen signatures

9. Importance of Treasury • Vital role in implementation of government policies and programmes • Backbone of State Government’s financial administration • Codes, manuals and procedures • Deviation from rules • Adverse impact on financial accountability • No authority to keep payment claim / deposit pending • Honour or object without delay

10. Organisational Setup

11. Collector’s Role • Overall in-charge of Treasury and revenue administration • Personal responsibility for • proper accountal of receipts and payments, • maintenance of records, • submission of returns • Appointment of Treasury Officer does not absolve Collector of responsibility

12. Collector’s Role (Contd.) • Periodical Examination • Every 3 months for cash and deposits • Every 6 months for opium • Every year for stamps, securities, drafts and cheques • During Examination • Actual stock corresponds to book balance, and is under lock and key • Deposit registers maintained properly • While taking/ handing over charge • Stock verification, intimation to Chief Secretary

13. Treasury Officer and Staff • Appointed by Finance Department • Reports to Collector • Responsible for proper discharge of duties by himself and subordinate staff • Under Treasury Officer • Treasurer • Cash handling at Non-Banking Treasury • Accountant • Recording of cash transactions

14. Accountant’s Role (Contd.) • Responsibility for • Compilation of accounts and returns • Ensuring compliance with all rules and orders • Highlight irregularities • Inspect accounts records of sub-treasuries

15. Handling of Govt. Funds • All money received as • Government revenues (Consolidated Fund) • Deposit into Government Custody (Public Account) • Should be immediately deposited in the Treasury • Cannot be used to meet departmental expenses

16. Withdrawal from Government’s Account • Withdrawals only under authority of • Treasury Officer (TO), or • Authorised officials of AG • Treasury Officer may permit withdrawals for • Payments due from Govt. to DDO • Funds to DDO to pay claims of • Govt. Servants • Private Parties • Direct payment to private parties

17. Withdrawals (Contd.) • Investment of Public Account funds by authorised officials • TO should decline demands for • Unauthorised payments • Payments not as per rules • TO responsible to AG for • Acceptance of validity of claims paid • Evidence of receipt by payee

18. Withdrawals (Contd.) • Payments only within district where claim arises, except pension • Urgent payments ordered by Collector to be reported to Finance Dept and AG • DDO’s Signature to be verified • Recoveries ordered by AG should be made by TO without delay

19. Bills Presented by DDOs • In printed form • Duly signed, and corrections attested • Full accounting classification • Should only cover 1 Major Head • Sanction order enclosed

20. Daily Accounts and Returns (Banking Treasury) • From Bank • Daily account of receipts and payments (daily scroll) with challans and vouchers • Passbook/ Register of receipts and payments • Forwarded daily to TO • TO will verify total daily receipts and payments, and sign

21. Daily Accounts (Contd.) • TO Registers • Register of receipt challans issued • Register of orders for payment • Entries in bank scroll to be reconciled with TO registers, and discharge date entered

22. Daily Posting • Individual receipts and payments to • Cash Book, or • Subsidiary Registers • Net Daily Receipts / Payments • To Register for Reserve Bank Deposits