Duties and Responsibilities of Drawing and

Disbursing Officers

Presented by
S. M. Mehedi Hasan
(Senior Asst. Secretary)
(MA , DU; MPP, Australia)
Deputy Director, BPATC
 Presentation Outline
Definition

Who can be a DDO?

What Next if there is no Gazetted Officer? 
 Rules of salaries and allowances
Non-gazetted officer/staff as DDO
 Payment of T A allowances

Types of DDOs
 Payment of supply and services

Self drawing officer
 Regarding duplicate bills

Administrative DDO
 Regarding affixing revenue stamp

Special DDO
 Maintenance of registers

Specimen Signature
 Maintenance of cash book

DDO’s responsibilities
 Security of cash book

What is financial propriety
 Handling Cash book

Budgetary control
 In case of development project

Preparation of bills
 DDO ‘s relation with accounts office

Compliance of rules and regulations
 Audit

A good DDO will…

 Definition
Drawing and Disbursing Officer [DDO] –
 As defined in GFR, BSR and other relevant rules;
Empowered by the competent authority;
Authorized to draw bills to pay for services rendered or
supplies made to Government and disburses as per rule;
Permitted to draw funds directly from the local
branches of the Bank by means of cheque under the
departmentalized system of payment as per different
rules of GFRs, FRs, SRs.
 Who can be a DDO
Head of the Office or any officer who has been
declared as disbursing officer by the government
(SR-65).
Head of the Office may delegate DDO ship to
any subordinate but two pre-conditions has to be
observed:
S/he must be a gazetted officer; and
S/he holds an independent charge of a post.
 What Next if there is no
Gazetted Officer
If there is no gazetted officer in an office to be
nominated as DDO, the senior most non-gazetted staff
may be assigned with the duties of DDO;

In such a case prior approval of the head of the

department has to be obtained.
Non-gazetted officer/staff as DDO

The necessity of authorizing a non-gazetted

officer can arise on very rare occasions when
the Gazetted officer of an institution is not
available or the number limited for some
other duties.
 Non-gazetted officer/staff as
DDO (contd..)
The head of an office may authorize a non-gazetted
officer/staff to draw bills only subject to the following
conditions:

The delegation to a non-gazetted officer/staff shall be

confined only to the case of the senior non-gazetted
officer/staff of the establishment and shall be under
the prior authority of the head of the department in
each instance.
 Non-gazetted officer/staff as
DDO (contd..)
 The head of the office shall accept in writing full
responsibility for all financial transactions which
take place in his office during the period.

 The delegated power shall be confined to such

transactions only as cannot, without inconvenience
to Government business or hardship, await the return
of the head of the office.
 Types of DDOs

AdministrativeDDO
∆ Special DDO
Self Drawing officer
 Self Drawing Officer

S.R. 56. The Drawing and Disbursing Officers can draw

bills on the Accounts Offices as per rules.
Note – The Gazetted Government servants (including
non-gazetted Government servants referred to in S.R.
140) are their own drawing officers in respect of their
personal claims.
 Administrative DDO

SR-66 :
DDOs’ are empowered to draw bills from the treasury
putting signature on bills regarding salaries &
allowances of 3rd class employees, supplies & services
Property/wealth acquisition & purchase and other
supplementary bills.
 Special DDO

On death of any employee in service, if any officer is

given responsibility as DDO by the Head of the office
to withdraw personal financial claims of the deceased
employee, then s/he is called Special DDO. This DDO
puts signature on all bills and hand over money to the
heir of that died deceased employee.
 Specimen Signature
 DDO’s Specimen Signature has to be transmitted to Accounts Offices,
Banks and other pay offices/units (SR-66);

 EveryHead of Office should furnish to the CAO/Paying Branch of

Bank his specimen signatures duly attested by another officer whose
specimen signature is already available to them;

 If
Head of Office authorizes a subordinate officer to function as DDO,
he should forward the DDO’s specimen signature duly attested;

 When DDO hands over charge to another DDO he has to forward the
specimen signatures of the new incumbent duly attested by him.
 DDO’s responsibilities

Every officer incurring or authorizing expenditure from

public funds. So s/he should be guided by high
standards of financial propriety (GFR-10).
 What is Financial Propriety?

• Every public officer is expected to exercise the same

vigilance in respect of expenditure incurred from
public moneys as a person of ordinary prudence would
exercise in respect of expenditure of his own money.
• The expenditure should not be more than the
demands.
• No authority should exercise its powers of sanctioning
expenditure to pass an order, which will be directly, or
indirectly to its own advantage.
What is Financial Propriety (Contd.)
• Public moneys should not be utilized for the benefit of a
particular person or section of the community unless –
 The amount of expenditure involved is insignificant,
or
 A claim for the amount could be enforced in a court
of law, or
 The expenditure is in pursuance of a recognized
policy or custom
• The amount of allowances granted to meet expenditure of
a particular type should be so regulated that the allowances
are not on the whole a source of profit to the recipients.
Budgetary control

DDO should verify some important obligatory duties in

case of payment from Govt. fund to ensure budgetary
control.
 Budget allocation in the proper head;
 Sanction from competent authority;
 Compliance of concerned rules and regulations;
 Observance of general principles of financial
propriety.
 Preparation of bill
During preparation of bill DDO should consider these
issues:
 Bill should be prepared in proper form.
 It should be signed by ink;
 Amount of bill should be written both in number and in
word;
 In case of correction it must be signed fully, initial is
not accepted.
 Preparation of bill (contd..)
 Over writing is not acceptable. If needed correction
can be done by using red ink and putting signature.

 Proper payment code should be written in the bill

form and

 Except pay bill, all other bills must be attached with

the sanction letter and relevant vouchers.
 Preparation of bill (contd..)
After preparing the bill:
 DDO must entry it into the bill register with his
sign.

 In case of receipt in cash or cheque against the bill,

entry should be given in the cash book.

 In case of pay and allowances the DDO must keep

an acquittance roll register. (applicable for non-
gazetted staff).
Compliance of rules and regulations by the DDO

All DDOs’ should be aware of:

 Financial rules;
 Service rules;
 Fundamental rules and supplementary rules
 Treasury rules and subsidiary rules;
 Accounts code;
 Government orders;
Other responsibilities of the DDO
 The duty of controlling officer and the DDO is to
ensure economy by following relevant rules and
regulation.

 DDO will be personally responsible for the security,

account and payment of government money.

 All DDO’s should ensure proper payment of pay and

allowances, payment of Traveling Allowances bills
and payment of bill for Supply and Services.
DDO should have clear idea about
classification of government account

Classification: Example
• Ministry/Division: Department
• Administrative/Operational Unit /Development
Project
• Economic code: Economic details
 Rules for Salaries and Allowances

For a newly appointed government servant, his

name should be incorporated in the acquittance roll
register. If he comes from other office the bill shall
be supported by the Last Pay Certificate (LPC).
Regarding Salaries
Responsible for the amount drawn on a bill

In a new posting, Last Pay Certificate (LPC) is a must.

On behalf of a deceased employee-succession

certificate.
For the pay due in old, post-non- drawal certificate

Arrears of pay, fixed allowances or leave salary shall be

drawn in a separate bill.

In the event of the death during service, pay and

allowances can be paid up to the date of death
 Payment of T.A bills

Before payment, DDO will ensure that:

The bill is prepared in the proper form;

Travel was commenced in shortest and cheapest

way

In case of transfer T.A family members were

showed according to relevant order.
 Payment of T.A bills (contd..)
Basic pay is shown rightly

Budget should be shown in the bill form properly by

DDO.

Signature is given properly

Proper code number is used in the bill.

Payment for Supply and Services
Before payment DDO should check that:

 Budgetary allocation is present;

 Proper sanction is present;

 Applicable rules and regulations are properly

followed.

Example: Delegation of Financial power etc.

 Items were supplied according to specification mentioned in the

tender schedule;
 Payment for Supply and Services (contd..)
Items are in good condition, entered into stock
register and certificate is given in the bill.

Bills are attached with proper voucher. Example:

tender document, comparative statement etc are
attached.

The Public Procurement Act 2006 and PPR 2008 is

followed properly.
 Regarding Duplicate Bill- SR90
 If any bill is lost after payment, no duplicate one can
be submitted against the same.

 If any bill gets lost before payment, the DDO can

issue a new bill. The word “Duplicate” will clearly
be written in ink over the face of the duplicate bill.
Regarding affixing Revenue Stamp

For any payment exceeding BDT 500/-a revenue

stamp of BDT 10 needs to be affixed on a bill.
Maintenance of registers by the DDO

DDO should maintain the following registers:

 Cash book;
 Petty-cash register;
 Advance register;
 T.A. bill register
 Supply and services register
 Receipt and disbursement register.
 Bank control register.
 Payroll register - for Officers and staff
 Maintenance of registers by the DDO (contd..)

 Cheque register
 Cheque book
 VAT register
 Bill register
 Income Tax (IT) register.
 Inventory register
 Revenue and Development Budget book &
 Annual Development Programme ( ADP)
Maintenance Cash Book
The DDO will ensure that all monetary transactions
in his office are entered in a cash book in the
prescribed form;
It should be bound and its pages machine-numbered.
Before bringing a cash book into use, the DDO
should count the number of pages and record a
certificate of count on the first page of the cash book;
All monetary transactions should be entered in the
cash book as soon as they occur;
 Maintenance Cash Book (Contd.)
The cash book should be closed regularly and completely
checked;
The DDO should verify the totaling of the cash book or have
this done by some responsible subordinate and initial it as
correct;
At the end of each month, the DDO should verify the cash
balance in the cash book and record a signed and dated
certificate;
In case, such verification of the balance is not possible on
the last working day due to disbursement of salary, the cash
verification may be done on the first working day of the next
month before any transaction arises on that day.
 Security of Cash
Cash Chest
 Government valuables & others in the custody of DDO should be
kept in a strong chest duly embedded in a wall, if possible;
 The type of chest may be decided depending upon the amount of
cash generally kept therein and general security conditions of the
premises;
 The cash chest will be secured with two locks of different
patterns so that each key is kept by a different person i.e. DDO
and the Cashier;
 The cash chest may be opened only where both of them keys are
present.
Handling of Cash Book
Procedures of maintaining cash book:
 Each transaction be entered in cash book when
occur;

 Entries of transaction be attested by office head.

Handling of Cash Book (contd..)
 Cash book be closed every day after detail
examination. Office head will do summation or put
signature certifying the correctness of cash book after
being examined by responsible staff other than cash
book writer.
 Officer will check receipt, cheque, voucher & challan
against each entry before signing.
 Check balance of cash book at the end of each month
& put signature with date certifying correctness.
 Handling of Cash Book (contd..)
 Office head will check challan, receipt, pass book
from bank and put signature on cash book being
ensured of money deposited into bank.

 Erasing, scratching or overwriting are completely

prohibited once entry is given in cash book. If any
wrong entry is identified, it should be cut in single
line by red ink, put correct entry and office head
will put signature with date for each of such entry.
In case of development project
In case of development project along with the
above mentioned books and registers a DDO needs
to keep the following:
 Fund releasing procedure for the development projects
 Delegation of Financial Power for the Development Projects
 Development Project Proposal (DPP) or Technical Project
Proposal (TPP).
 Copy of Development Credit Agreement/Financing Agreement
( with full knowledge about the terms and conditions of the
Agreement) with the donor.
Maintenance & Submission of Accounts
The Drawing & Disbursing Officer is
personally responsible for the correct
maintenance and timely submission of
accounts or returns in respect of public funds
or stores handled in his office.
 DDO’s relation with accounts offices

 DDO should maintain very close liaison with its

respective CAO, DAO and UAO offices;

 He should enclose all relevant papers before

submitting a bill to those offices;

 DDO should reconcile the monthly accounts with

those offices.
Audit
 DDO play the role of initial inspector of the
subordinate’s task;
 Facilitating internal auditors to proceed with the
oversight function;
 Aiding the external auditors to undertake the
oversight job;
 Responding to the queries of the auditors.
 Other duties
 Safe custody of vouchers;
 Maintenance of entity’s bank account;
 Maintenance of necessary registers and others;
 Report of any loss;
 Issue LPC to a non-gazetted staff;
 Maintenance of service book and its periodical
updates;
 Maintenance of casual leave record.
 A Good DDO Needs--

A good DDO will keep following books in hand:

 Establishment manual Vol. 1 & Vol. 2;

 Personnel manual;

 Compilation of Financial orders issued by Ministry

of Finance (MOF);

 TO & E Manual;
 A Good DDO will (contd..) --
 ERD hand book;

 The Public Procurement Act 2006, PPR 2008 and

Procurement procedure issued by Central
Procurement Technical Unit (CPTU);

 Delegation of Financial Power Booklet issued by

MoF;

 Fund release procedure booklet etc.

Thank You