QUESTION: 131

Comment on the following:

i. A Gazetted officer asked for the details of
the salary credited to his saving bank account
by the DDO, but he refused to give such
detail?
ii. A pensioner submitted his claim for
pension in the month of March, by submitting
a life certificate issued by a Gazetted Officer,
but the Pension paying authority asked him to
appear in person?
QUESTION: 132

Comment on the following:

a) The Accountant General Punjab requested
the Central Account Section, Nagpur to
adjust the amount of payment by DTO
Patiala to J&K Government.
b) The Accountant General ordered DTO to
cancel the vouchers which are required to
be submitted to AG Punjab, which cannot
be cancelled without the DDO or
Controlling Officers?
QUESTION: 133

Differentiate between the following:

a. Tehsildari Letter of Credit and Cash
Order;
b. Audit Against Regularity and Audit
against Propriety;
c. Resource Operation and Ways and
Means.
QUESTION: 134

Write a Short note on Inspection and

Local Audit?
QUESTION: 135

How defalcation, losses, remission and

abandonment of claims of revenue are
reported to AG Punjab?
QUESTION: 136

Which are the rules to be observed

while taking money out of double lock at
the treasury?
QUESTION: 137

Which are the provisions to be

observed, while keeping accounts of local
funds at a Treasury
QUESTION: 138

Define Recovery, specify the

directions for regulating the exhibition of
recoveries of expenditure in Government
accounts. Also indication their
application to Public Works transactions.
QUESTION: 129

Give your answer in the following

with supporting rules:
a) Drawl of Leave Salary in advance?
b) Items which are not treated as
deposits.
QUESTION: 140

(a) State the number of copies of challans

required in the following cases:
i. GPF
ii. VAT
iii. Recovery of Loans granted to Local Bodies;
iv. Income Tax;
v. Passenger Tax.
(b) What procedure should be followed to watch
the timely submission of UC (Utilization Certificate)
ANSWER: 131

Rule 7.12 –A (vi), of the Punjab Financial Rules, volume-I clearly

states that a Salary Slips in Form 'D' showing the breakup of salary
shall be issued every month to each Government employee to
enable him to know his entitlement. Therefore the refusal to issue
detail of salary is not in order.
Rule 295(1)(iii) provides that a person who have procured a life
certificate issued by a Gazetted Government employee need not to
appear in person to get his pension. Rule 306(4) further provides
that an employee who has procured life certificate attested under
rule 295(1) need not appear before the Treasury Officer or Pension
Paying authority.
ANSWER: 132

a) The operations of each State shall, however, be confined to

the offices and branches of the Reserve Bank of India and of
the bank which have been designated as falling within the
area of that particular State. The receipt and payment of
moneys on behalf of a State outside its jurisdiction shall
ordinarily be arranged through the Accountant General of the
State in which the transactions take place. Vide Rule 9 of GAR
b) Sub-vouchers which are required to be sent to the
Accountant-General should not be cancelled either by the
drawing officer or by controlling officer as the duty of
cancelling these sub-vouchers and keeping them in proper
custody to prevent their fraudulent use devolves on the
Accountant-GeneralNote (3) rule 8.5 of PFR.
ANSWER: 133

(a) Tahsildari letters of credit and cash order are issued by the District Treasury in
respect of payments to be made at a sub-treasury, (vide rule 209). The Tahsildari letters of
credit is issued invariably in favor of the person to whom money is due or who is responsible
for its disbursement. Payments against a Tahsildari letter of credit can be made in several
installments by the Tehsildar drawing cheques in favor of the persons to whom the money is
due or who are responsible for its disbursement, while Cash Order is payable in one
installment to the individual named therein who obtains payment at the Sub-Treasury by
presenting the Cash Order itself duly receipted vide rule 209 and 210(1) PTR
(b) Audit against regularity is defined in para 16.1 of IIGA&A as consisting in
verifying that the expenditure conforms to the relevant provisions of the Constitution and of
the Laws and Rules made there under and is also in accordance with the financial rules,
regulations and orders issued by a competent authority either in pursuance of any provisions
of the Constitution or of the Laws and Rules made there under or by virtue of powers
formally delegated to it by a higher authority. Whereas audit against propriety as explained in
para 16.17 of IIGA&A, is the Audit of every matter in which in its judgment appears to involve
improper expenditure or waste of public money or stores even though the accounts
themselves may be in order and no obvious irregularity has occurred. It extends beyond the
formality of the expenditure to its wisdom, faithfulness and economy.
ANSWER: 133

(c) Resources operation as defined in para 3.27 of the IIGA&A defines

that The cash balance of a Government comprises the balance in its account
with the Reserve Bank and the balances at treasuries and sub-treasuries, the
cash business of which is not conducted by the Bank. Some treasuries collect
more receipts that they require for their payments, others less; and
arrangements have to be made so that all the treasuries have at all times
sufficient funds to meet the demands on them. The process of distribution of
funds for this purpose is referred to as Resource Operations. Whereas per
para 3.25 of IIGA&A, Ways and Means are refers to methods of maintaining
the Government’s daily cash balance at a level sufficient to meet its days-to
day requirements. All moneys received by or on behalf of Government either
as dues of Government or by way of deposits, remittance or otherwise enter
into the cash balance. . A constant watch is kept on Government’s cash
balance so that it does not fall below the prescribed minimum at any stage.
ANSWER: 134

INSPECTION AND LOCAL AUDIT

The primary objects of inspection as given in para 18.5 of IIGA&A are
(i) to see that the initial accounts from which the accounts rendered by
departmental officers are compiled, or on which they are based, are properly maintained
in the prescribed forms and that financial rules and orders are being carried out, and
(ii) to test the degree of care exercised by the departmental authorities responsible
for keeping the accounts over the accuracy of original records.
(iii) At the same time a test audit is applied to such accounts, vouchers etc., as are
not audited in the Central Audit office or as cannot be checked adequately except at a
local audit.
(iv) In inspections the purpose of this test audit is to provide the material upon which
a conclusion regarding compliance of financial rules and
Local audit para 18.6 of IIGA&A distinguish local audit from inspection is that its purpose
is to audit the initial accounts maintained in certain Government institutions and offices
on the spot. Here the duties of audit are not confined merely to seeing whether the initial
accounts are maintained in proper form or whether the financial rules are properly
observed but a test audit of accounts is conducted in sufficient detail to verify the
accuracy and completeness of accounts according to the prescribed rules for the audit of
expenditure and receipts of the Union and State Governments.
ANSWER: 125

Para (I) of Annexure 'B' to Chapter –II of the Punjab Financial Rules provides that any
loss of public money, departmental revenue or receipts stamps, opium, stores or
other property held by or on behalf of Government, caused by defalcation or
otherwise which is discovered in a Treasury or any other office or department, should
be immediately reported by the officer concerned to his immediate official superior as
well as to the Accountant-General, even when such loss has been made good by the
party responsible for it. It will usually be sufficient if the officer reporting the
defalcation or loss to higher authority sends to the Accountant-General either a copy
of his report or such relevant extracts from it as are sufficient to explain the exact
nature of the defalcation or loss and the circumstances which made it possible. Such
reports must be submitted as soon as a suspicion arises that there has been a loss.
It should not be delayed for want of inquiry. When the matter has been fully
investigated further a complete report should be submitted about the nature and
extent of the loss, showing the error or neglect of the rules by which such loss was
rendered possible, and the prospects of effecting a recovery.
ANSWER: 1236
Rule 144 of the Punjab Treasury rules defines that the following procedure should be observed while
receiving in /issuing money from the double lock at treasury
(1) In receiving coin into double locks, the Treasury Officer shall cause the contents of each bag to be
emptied into the scales, weighed and poured into another bag, which shall be tied up in his
presence with the slip in Form PTR 21 placed inside it. The bags thus tested shall then be counted
into the chest.
(2) In receiving notes into double locks, the Treasury Officer shall count the notes in each bundle and
satisfy himself that the notes are all of the alleged value, i.e., that a note of lower denomination has
not been included in bundle for a higher denomination, and sign the label in Form PTR 22 on the
top as a token of this verification. The bundles thus tested should then be counted in the chest.
In the case of fresh notes of the denominations of ten rupees and five rupees received in a
remittance from the currency office, the detailed check may be confined to one bundle in every ten
taken at random.
(3) Notes shall be given out of double locks by counting the number of bundles.
(4) Silver coin shall be given out of double locks by counting the number of bags only.
(5) Every amount passed into or passed out of double locks and currency chest shall be registered in
Form PTR 5 (Treasurer's Daily Balance Sheet) at the time by the Officer-in-charge with his own hand,
and a memorandum shall be kept in each chest showing its contents.
(6) The lines in Form PTR 5 shall be printed wide apart so as to admit of two or three entries against
each in the rare cases which the same kind of money is taken out more than once the same day.
(7) Money arriving from a distance too late in the day for examination shall be kept in sealed bags
under double locks but only until the next working day, the fact being recorded in the register of
valuable prescribed in these rules.
ANSWER: 137

As per provisions contained in rule 63 of Treasury

Accounting Rules, The transactions relating to local funds
including Municipal and Cantonment Board Funds, should
be recorded in the forms to be used for personal deposits
(form IST-19 and IST-21) but should be kept separately and
should pass into the treasury accounts as deposits of Local
Funds and not Personal Deposits.
ANSWER: 138

The term 'recovery' is used to denote repayment of or payment by another department of the same
Government or by another Government or by a non-Government party (including public sector
undertakings, autonomous bodies and private persons and bodies to a Government Department) which
initially incurred the charge and classified it in the accounts as final expenditure by debit to revenue or
capital heads of accounts.:
The different types of recoveries are classified as under: -
1. Recoveries of expenditure for services or supplies made to non-Government parties or other
Governments (including local funds and Governments outside India) shall, in all cases be classified as
receipts of the Government rendering such services or supplies.
2. Recoveries between different departments of the same Government, the recoveries shall be
classified as deduction from the gross expenditure except that such recoveries as are made by a
commercial department e.g. Railways, Department of Posts and Department of Telecommunications or a
departmental commercial undertaking (e.g. A.I.R.) should be treated as receipts of that department
3. The technical estimates of a work take cognizance of all anticipated receipts from sale proceeds
of materials, plant, etc. received from the old structure, while the receipts under "stock and suspense"
are by their very nature inseparable from the expenditure recorded under the main head.
4. Receipts and recoveries on capital Accounts insofar as they represent recoveries of expenditure
previously debited to a Capital Major head shall be taken in reduction of expenditure under the major
head concerned except where under the rules of allocation applicable to a particular department such
receipts have to be taken to revenue
Vide rule 52 to 56 of the Government Accounting Rule, 1995.
ANSWER: 1239

a) Advance Leave Salary may be drawn by a Government employee up to one month as per provisions of rule
8.122(7) of Punjab Civil Service Rules, Volume-I on the following conditions:
i. Leave should not be less than one month.
ii. Amount of advance shall be equal to net amount after deducting all the deductions and recoveries.
iii. Entire advance shall be adjusted in full in the leave salary bills.
iv. Advance may be sanctioned by the Head of Office or any other officer to him such powers have been
delegated.
v. Advance shall be sanctioned in whole rupee.
b) The following receipts as per provisions of rule 373 of Punjab Treasury Rules, shall not be treated as deposits:
(1) The amount of pay, pension or other allowances on the ground of the absence of the payee or for any other reason;
Provided that when a pension is granted to several persons jointly, it may not be drawn on the appearance of one
claimant only, and payment of his computed share made and the balance may be placed in deposit.
(2) The amount of fines on the ground that appeal is pending, such funds shall be credited at once to Government and
refunded, if necessary on order of the appellate court.. Provided that the amount of compensation fines due to an
injured party, and not to the Government, maybe kept in deposit,
(3) The amount of refunds whether of stamps or of other receipts pending demand by the payee.
(4) The amount of sale proceeds of unclaimed property.
(5) The amount of proceeds of sales of old stores or other Government property, which are to be credited to
government at once.
(6) The amount of license fees recovered in advance from excise contractors, which shall be taken direct to the head
"Excise".
(7) The amount of receipts in connection with the Trifunctional pillars;
(8) The amount of land revenue and cases, collected in one tehsil on account of another tehsil or district; and
(9) The amount of receipts for which full particulars are not shown, which are to be credited as "unclassified items" of
the Department concerned.
ANSWER: 140

(a) As per provision of Rule 108 and 120 of Punjab Treasury Rules, Volume-I the number of
challans required as under:
i. GPF - Triplicate
ii. VAT – Quae4ruplicate
iii. Recovery of Loans granted to Local Bodies; Triplicate
iv. Income Tax; Quae4ruplicate
v. Passenger Tax - Triplicate
(b) With a view to keeping a watch on the timely submission of utilisation certificates,
the procedure to be observed have been issued by the Government vide Punjab Government
letter No. 9/95/86-2FCR/20551, dated 27th October, 1986, as under: -
The target dates fixed for submission of audited statement of accounts by the grantee
institutions, etc., should not be later than fifteen months from the date of sanction of the
grant. The sanctioning authority should make it incumbent upon the grantee institutions to
submit the statements within the stipulated period by including a clause to this effect in the
sanctioning letter. The utilisation certificate should be submitted by the sanctioning authority
to the Audit not later than eighteen months from the date of sanction of the grant.
The sanctioning authority or an authority authorized to countersign the bill for grant-
in-aid should maintain a register of grants for indicating particulars.
THANKS