Administrative Expenses Manual

ACCOUNTS MANUAL
OF
THE PRADHAN MANTRI
GRAM SADAK YOJANA
ADMINISTRATIVE EXPENSES FUND

(May 2005)
National Rural Roads Development Agency

Ministry of Rural Development
Government of India
Manual of PMGSY Accounting System
Administrative Expenses Fund
CONTENTS
Chapter Particulars Subjects covered Page
No. No.
Glossary of Abbreviations
1 Introduction Background 1
Hierarchy for the execution of PMGSY 1
Flow of Funds 2
Accounting System for the Administrative Expenses Fund 4
Major Similarities Between the Government 5
and the PMGSY accounting system
2 Opening Balance Sheet Opening Balance Sheet 6

and Double Entry System Double Entry System of Accounting 7
Depreciation 7
3 Definitions Defines all the technical, finance and accounting terms 8
4 Outline of the Accounting Classification of PMGSY Funds 10

System of the Chart of Accounts 10
Administrative Expenses
Fund
5. Relations with Post Check in the Accounts Offices 16

Accounts Officer Divisional Accountant 16
Inspection by the Audit Officer/Auditor/Accounts Officers/ 18
Internal Auditors
Communication of Sanctions to Accounts Officer 18
6 Sanctions Introductory 19
Re-appropriation of Funds 19
Watching the actual 19
7 Cash and Stores Introductory 20

Modes of Obtaining Cash 20
Accounting Procedure for cancellation of a cheque 21
Receipt of Money 23
Payments 23
Bills 24
i
No. No.
Voucher 24
Remittance to accredited bank 25
Cash Book 25
Imprest 26
Cheque Books and Receipt Books 27
Custody of Cash 27
Stores 27
8 Transfer Entries General 28
9 Administrative Expenses General 30

Accounts Accounts Procedure for Expenses 30
Accounts Procedure for Assets 30
Income 30
Ledger of Debit Balances 31
Ledger of Credit Balances 31
Suspense Accounts 31
Liabilities Awaiting Incorporation 31
Expenditure on Inauguration Ceremonies 31
Depreciation 31
10 Miscellaneous Advances Introductory 32
11 Deposits Repayable Introductory 33

Security Deposits 33
Lapsed Deposits 33
12 Accounts of Divisional Introductory 34

Officers of PIUs Scrutiny of Accounts 34
Bank Authorization Statement by PIU 35
Compilation of Monthly Accounts 35
Monthly Account of Receipts and Payments 35
Registers & Schedules 36
Monthly Income and Expenditure Account 36
Monthly Balance Sheet 36
Submission of Accounts to Account Officer 37
Authentication of Accounts 37
Annual Accounts 37
Review of Unsettled Accounts 38
ii
No. No.
13 Accounts of State Rural Introduction 39
Roads Development Single Bank Account 39
Agency Accounting Procedure 40
Monthly Account of Receipts and Payments 41
Income and Expenditure Account 41
Balance Sheet 41
State Income and Expenditure Account and 42
the Balance Sheet
Annual Account 42
14 Audit Statutory Audit 44

Comptroller and Auditor General of India 45
Internal Audit 45
Audit Committee 48
15 Miscellaneous Cheque Books 49

Receipt Books 49
Transfer of Charge 50
Reconstitution of Executive Charges 51
Preservation of Records 51
16 Reports General 52
GLOSSARY OF ABBREVIATIONS
ADB Asian Development Bank
BATE Book Bank Authorisation Transfer Entry Book
DPR Detailed Project Report
IRC Indian Road Congress
MAS Account Material at Site Account
MoRD Ministry of Rural Development
NRRDA National Rural Roads Development Agency
OMMS On line Management and Monitoring System
PIU Programme Implementation Unit
PMGSY Pradhan Mantri Gram Sadak Yojana
PWD Public Works Department
SRRDA State Rural Roads Development Agency
iii
Forms of Accounts
S. No. Name of Record PMGSY Form No. Relevant Progra- Page

-mme Fund Form No.
2 3 4 5
MONTHLY ACCOUNT, INCOME AND EXPENDITURE
ACCOUNT & BALANCE SHEET
1. Monthly Account of Receipts and Payments (SRRDA.) PMGSY/F-1-ADM No Change 53
2 Monthly Account of Receipts and Payments (PIU.) PMGSY/F-1A-ADM No Change 55
3 Master Sheet of Accounts of All the PIUs PMGSY/F-1AA-ADM No Change 57
4 Master Sheet of Consolidated Balance Sheet of SRRDA and PIUs PMGSY/F-1AAA-ADM No Change 58
5 Annual Account of Receipts and Payments (SRRDA) PMGSY/F-1A (Annual) No Change 59
-ADM
6 Annual Account of Receipts and Payments (PIU) PMGSY/F-1B (Annual) No Change 61
-ADM
7 Consolidated Income and Expenditure Account (State) PMGSY/F-1(I&E-1) New 63
8. Income and Expenditure Account (SRRDA) PMGSY/F-1(I&E-2) New 64
9 Income and Expenditure Account (PIU) PMGSY/F-1(I&E-3) New 65
10 Consolidated Balance Sheet (State) PMGSY/F-2-ADM New 66
11 Monthly/Annual Balance Sheet (SRRDA) PMGSY/F-2A-ADM New 67
12 Monthly/Annual Balance Sheet (PIU) PMGSY/F-2B-ADM PMGSY/F-2B 68
INITIAL ACCOUNT RECORDS
13 Cash Book of SRRDA PMGSY/IA/F-3 No Change 69
14 Cash Book of PIU PMGSY/IA/F-3A No Change 70
15 Imprest Cash Book PMGSY/IA/F-4 No Change 71
16 Money Receipt Book PMGSY/IA/F-5 No Change 71
17 Payment Voucher PMGSY/IA/F-6 No Change 72
18 Transfer Entry Book PMGSY/IA/F-7 No Change 73
19 Bank Authorisation Transfer Entry Book PMGSY/IA/F-7A No Change 73
20 General Ledger (Debit balances) PMGSY/IA/F-8 No Change 74
21 General Ledger (Credit balances) PMGSY/IA/F-9 No Change 74
22 Register of Funds Transferred by SRRDA to PIU PMGSY/IA/F-10-ADM No Change 75
23 Abstract PIU-wise Register of Administrative Expenses Funds PMGSY/IA/F-10A-ADM No Change 75
Transferred by SRRDA
24 Register of PIU-Wise Bank Authorisations PMGSY/IA/F-10B-ADM No Change 76
25 Abstract of PIU-wise Outstanding Bank Authorisations PMGSY/IA/F-10C-ADM No Change 76
26 PIU-wise Register of Cheques Issued PMGSY/IA/F-10D No Change 77
27 Register of Remittances into the Bank PMGSY/IA/F-10E No Change 77
28 Transfer Entry Order PMGSY/IA/F-17 No Change 78
SUBSIDIARY REGISTERS etc.
29 Register of Deposits Repayable PMGSY/SR/F-22 No Change 78
iv
S. No. Name of Record PMGSY Form No. Relevant Progra- Page
-mme Fund Form No.
30 Register of Miscellaneous Advance PMGSY/SR/F-23 No Change 79
31 Register of S.T.D./Trunk Call Charges As per 79
Government Order
32 Register of Travelling Expenses As per 79
Government Order
33 Register of Consumable Store As per 79
Government Order
34 Register of Government Sanctions Releasing Administrative PMGSY/SR/F-28 No Change 80
Expenses Fund
35 Register of Cheques/ Receipt Books PMGSY/SR/F-32 No Change 80
36 Register of Miscellaneous Recoveries PMGSY/SR/F-32A No Change 81
37 Register of Unpaid Bills PMGSY/SS/F-45 No change 82
38 Register of Durable Assets PMGSY/SS/F-46 No change 82
39 Application–Cum-Bill for Refund of Lapsed Deposit PMGSY/SS/F-51 No change 83
SUPPORTING SCHEDULES WITH MONTHLY ACCOUNT/
BALANCE SHEET
40 Bank Authorisation Utilization and Reconciliation Statement PMGSY/SCH/F-52-ADM No change 84
41 Bank Remittance Reconciliation Statement PMGSY/SCH/F-52 No change 85
REM-ADM
42 Schedule of Administrative Expenses Fund PMGSY/SCH/F-52A Revised 86
ADM
43 Schedule of Surplus Funds/Misc. Income PMGSY/SCH/F-52B No change 86
ADM
44 Schedule of Deposits Repayable PMGSY/SCH/F-52C No change 87
ADM
45 Schedule of Current Liabilities PMGSY/SCH/F-52D No change 87
ADM
46 Schedule of Current Assets PMGSY/SCH/ New 87
F-53E-ADM
47 Schedule of Durable Assets PMGSY/SCH/ New 88
F-53F-ADM
48 List of Schedules to be Annexed with Balance Sheet of PIU PMGSY/SCH/F-56 No Change 88
49 Schedule of Cash Balance PMGSY/SCH/F-57 No Change 88
50 Register Of Divisional Accountant’s Audit Objections PMGSY/GEN/F-59 No Change 89
51 Divisional Officer’s Report Of Scrutiny Of Accounts PMGSY/GEN/F-60 No Change 89
52 Register of Destruction of Records PMGSY/GEN/F-63 No Change 89
53 Requisition for Bank Authorisations for Central Administrative PMGSY/GEN/F-64A New 90
Expenses Funds - ADM
54 Requisition for Bank Authorisations for State Administrative PMGSY/GEN/F-64B New 90
Expenses Funds - ADM
55 Bank Authorisation Authority PMGSY/GEN/F-65 New 91
v
PMGSY Administrative Expenses Fund National Rural Roads Development Agency
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND
1.1.1 The Government of India launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) as a 100 percent
centrally sponsored scheme in December, 2000. PMGSY’s funds come from the 50 percent of the cess on high
speed diesel.
1.1.2 PMGSY aims to provide good all-weather road connectivity to the unconnected habitations in rural areas by
an all-weather road with necessary culverts and cross-drainage structures, operable throughout the year. An
unconnected habitation means its location is at a distance of at least 500 metres or more (1.5 km of path distance
in case of hills) from an all-weather road or a connected habitation. A habitation is not a revenue village or a
panchayat. It means cluster of population, living in an area, the location of which does not change over time.
Desam, Dhanis, Tolas, Majras, Hamlets etc. are commonly used terminology to describe the habitations. The
population of all habitations within a radius of 500 metres (1.5 km. of path distance in case of Hills) may be clubbed
together for the purpose of determining the population size.
1.1.3 Each road work under the PMGSY forms part of the Core Network — the minimal network of roads to
provide basic access to essential social economic services to all eligible habitations through at least single all-
weather road connectivity. PMGSY covers only the Rural Roads i.e., roads that were formerly classified as ‘Other
District Roads’ (ODR) and ‘Village Roads’ (VR). An all-weather road is one which is negotiable during all weathers.
This implies that the road-bed is drained effectively by adequate cross-drainage structures such as culverts, minor
bridges and causeways.
1.1.4 The roads constructed under this programme are expected to be of very high standard, requiring no major
repairs for at least five years after completion of construction. Contractor will furnish to the authorities a bank
guarantee for the prescribed per cent of the value of the work and valid for the 5 years from the date of completion
of the road construction. The rural roads constructed under the PMGSY must meet the technical specifications of
the Indian Roads Congress (IRC) as given in the Rural Roads Manual (IRC: SP20:2002), as up-dated from time to
time. (For Hill Roads, for matters not covered by the Rural Roads Manual, provisions of Hills Roads Manual
(IRC:SP:48) may apply.)
1.2 HIERARCHY FOR THE EXECUTION OF PMGSY

Ministry of Rural Development, Government of India
1.2.1 Ministry of Rural Development (MoRD), Government of India is the controlling authority for the PMGSY. It
provides the funds, issues guidelines, and works in close collaboration with the States for implementing the
Programme.
1.2.2 MoRD has set up the National Rural Roads Development Agency (NRRDA) to provide to the PMGSY
programme operational and management support, inter-alia, on the following:
(i) Designs & Specifications, Book of Specifications for Rural Roads and the cost norms.
(ii) Principal Technical Agencies and State Technical Agencies
(iii) District Rural Roads Plans and Core Network.
(iv) Scrutiny of Project Proposals
(v) National Quality Monitors
(vi) Monitoring of progress of the PMGSY
1
PMGSY Administrative Expenses Fund
(vii) On-Line Management & Monitoring System

(viii) Training, Workshops, Research, Pilot Projects and Literature.
(ix) Human Resource Development
Nodal Department
1.2.3 Every State Government / UT Administration has nominated a Department as the Nodal Department
responsible for implementing the PMGSY in the State. It communicates for the State Government with MoRD.
Executing Agency
1.2.4 The Nodal Department acts in the State through one Executing Agency (EA). (Large States may have more
than one). The Executing Agency may be the Public Works Department / Rural Engineering Service / Organisation
/ Rural Works Department / Zilla Parishad / Panchayati Raj Engineering Department etc. who have been in existence
for a large number of years and have the necessary experience, expertise and manpower for constructing the
rural roads.
Programme Implementation Unit (PIU)
1.2.5 The Executing Agency has a Programme Implementation Unit (PIU) at the District level, with an officer of the
rank of Executive Engineer as its head. The PIU implements the programme; the Executing Agency co-ordinates
and supervises all the work of the PIUs in the State.
Autonomous Agency (State Rural Roads Development Agency)
1.2.6 Effective from 1st April, 2003, the Nodal Department will have a State Rural Roads Development Agency
(SRRDA). This is a State-level Autonomous Agency (Society etc), with a distinct legal status, under State
Government’s control for receiving the funds from MoRD. The SRRDA is to be headed by the Minister or the Chief
Secretary and the Secretary in charge of the Nodal Department and a senior officer will be the Chief Executive. It
will vet all the proposals for rural roads before they are put up before the State-level Standing Committee and are
sent to the NRRDA for MoRD’s clearance.
Annual Proposals
1.2.7 Each State Government has set up a State-level Standing Committee to vet the core networks and clear the
project proposals. The Committee also monitors the programme, and oversees the timely and proper execution of
road works.
1.2.8 The project proposals are based on the District-wise amounts allocated by the Nodal Department. The
District PIU prepares the annual proposal from the comprehensive New Connectivity Priority List (CNCP List) in
case eligible unconnected inhabitations shall remain or from the Comprehensive Up-gradation Priority List (CUPL)
in case only un-gradation of existing roads is to be done. These annual proposals are approved by the District
Panchayat, consolidated at the State level by the SRRDA and cleared by the State Level Standing Committee.
Detailed Project Reports (DPRs) are then prepared and scrutinized by the State Technical Agencies. The final
annual proposal is then sent to the MoRD / NRRDA.
1.2.9 NRRDA scrutinises the proposal, which are then considered by an Empowered Committee of the MoRD and
accorded clearance. MoRD informs the State Governments about the clearance of the proposals. This clearance
does not imply administrative approval or technical sanction of the proposals. The well established procedures of
the Executing Agency in this regard are to be followed.
1.3 FLOW OF FUNDS

1.3.1 The SRRDA shall receive the funds for the PMGSY from the MoRD for its share of the Administrative
Expenses Fund. It will also received funds from the State Government towards State’s share. The SRRDA will be
responsible for rendering its accounts to the State Nodal Department and the MoRD.
1.3.2 The SRRDA shall select a branch of any Public Sector Bank or Institution based Bank, having a branch at
State Headquarters and internet connectivity for operating the PMGSY’s On-line Management & Monitoring System
(OMMS). Once selected, the account shall not be changed to any other Branch or Bank without the concurrence of
the NRRDA. There shall be a written undertaking from the Bank that it will follow the Guidelines of Government of
India for payments from the PMGSY Funds. The concerned branch will maintain internet connectivity and enter the
2
data into the relevant module of the OMMS. The SRRDA will communicate to the NRRDA and MoRD the
details of the Bank branch and the Account numbers. There will be separate account number for the Administrative
Expenses Fund.
1.3.3 The Bank shall provide the following facilities to the PIUs through its branches at the Headquarters of the
PIUs:
(i) To accept the self cheques drawn by the PIUs.
(ii) To accept the deposits of moneys by the PIU in the bank account of the SRRDA maintained at the State Level.
(iii) To clear the cheques, issued by the PIUs or the SRRDA, at par, the same day in the designated account.
(iv) To furnish to the PIU the bank statement at the close of each month showing the opening balance of the bank
authorization account, details of the PIU’s cheques encashed during the month, and the balance of the bank
authorization account at the closing day of the month. The statement shall also be furnished to the SRRDA.
(v) For interest paid to the SRRDA, the bank statement shall show both the gross amount of the interest and the
tax deducted at source.
1.3.4 The SRRDA will declare the Executive Engineer of the PIUs/Heads of the PIUs (who are the drawing and
disbursing officers of the PIU) as its ex-officio members or officers so as to enable them to draw on the funds. They
shall be declared authorized signatories.
1.3.5 There shall be no separate bank account of the PIUs in any bank or Post Office.
1.3.6 The SRRDA shall designate a senior officer as its Financial Controller to oversee the implementation of the
accounting system. He would be a Senior Accounts Officer with adequate experience in works accounting.
1.3.7 The SRRDA will nominate one of its senior officers, normally of the rank of a Chief Engineer, as the Empowered
Officer. It shall be open only to the Empowered Officer to inform the Bank of the names of Authorised Signatories,
for issuing cheques on the SRRDA’s bank account.
1.3.8 The Empowered Officer will furnish the list of Authorised Signatories along with their attested signatures to
the Bank, apart from himself maintaining a record of it. This list will be verified quarterly and up-dated list supplied
to the bank each quarter. As soon as there is a change in the name of the Authorised Signatory, the Bank will
be informed immediately, with instructions on the disposal of cheques issued.
1.3.9 The Bank will issue Cheque Books to each of the Authorised Signatories on the basis of written requisition
from the Empowered Officer. Cheque Book numbers shall be intimated to the Financial Controller.
1.3.10 The Authorised Signatories will make payments, as per the established Public Works procedure, by Account
Payee cheque. They will immediately enter the cheque and payee details in the Payment Module of the OMMS.
1.3.11 On presentation of the cheque issued form the Administrative Expenses Fund, the Bank would satisfy itself
that the payment details have been entered in the Payment Module, and that the cheque meets with all other
requirements, among others, like signatures agreeing with specimen signatures, and the cheque amount being
within the balance of bank authorization available. The bank will then make payments and confirmation entries in
the OMMS Accounting Module. The Bank will not allow the funds to be used by any persons other than the Authorised
Signatories.
It will not be open to the SRRDA to invest these funds in any other bank branch, whether for short term, medium
term, including fixed deposits.
1.3.12 The Bank will render monthly account, in respect of PMGSY Funds, to the SRRDA, and NRRDA by processing
the data on the Receipts and Payment Module of the OMMS. It will also inform the concerned PIU of its cheques
encashed and its deposits credited to the account of SRRDA.
1.3.13 A tripartite Memorandum of Understanding will be entered into between the Bank, SRRDA and the MoRD
wherein the parties would agree to abide by the provisions of the Guidelines. In particular, the Bank will agree to
abide by the instructions issued, from time to time, by MoRD/NRRDA regarding the operation of the Account. The
Bank will not make any advance, overdraft or loans to any State Government or its agency or unit or corporation or
any one else on the security of the investments or funds of PMGSY under any circumstances.
3
1.3.14 Money accruing as interest will be added to the same account. The expenditure out of this interest amount
will be guided by the instructions / guidelines to be issued by MoRD / NRRDA from time to time. The Bank shall
intimate to the SRRDA the interest amount credited to its account from time to time. The MoRD/NRRDA may, from
to time, issue such directives to the Bank/SRRDA as necessary for the smooth flow of funds and effectiveness of
the Programme, and the Bank shall take note of the advice and comply with such directives.
1.4 ADMINISTRATIVE EXPENSES

1.4.1 All the staff costs are to be borne by the State Government. PMGSY does not provide for any staff costs.
However; the administrative and travel expenses of PIUs and SRRDA will be met out of PMGSY funds to the
following extent, with the State Government bearing any additional costs:
Item Percentage of the approved cost

estimate of rural roads
(a) Administrative Expenses for PIUs 1.00%
(b) Travel Expenses of PIUs 0.50%
(c) Administrative and & Travel expenses (SRRDA) 0.25% ( Rs. 25 lakh maximum)
(d) Independent Quality Monitoring 2nd tier 0.50%
1.4.2 Administrative expenses shall, in addition to usual office expenses, include all expenses related to operating
and maintaining the On Line Management and Monitoring System (OMMS), computers including internet charges
and data entry costs. Cost of outsourcing of execution and management related functions may also be paid out of
administrative expenses within the limits prescribed. However, expenditure on purchase of vehicles, payment of
salaries & wages and purchase or construction of buildings is not permissible.
1.4.3 State Government funds for administrative expenses and SRRDA’s income used for administrative purposes
may also be kept in the Administrative Expenses Fund account along with the funds from MoRD. No other funds
shall be credited to the account nor shall the account be used other than for defraying admissible expenses.
1.4.4 No Agency charges will be admissible for road works taken up under this Programme. In case Executing
Agencies levy charges in any form, such as Centage charges etc., it would have to be borne by the State Government.
1.5 ACCOUNTING SYSTEM FOR THE ADMINISTRATIVE EXPENSES FUND

1.5.1 The accounting system for the PMGSY Administrative Expenses Fund is primarily based on the accounting
system of the PMGSY Programme Fund. However, some differences between the two systems do exist. These
are:
(i) The conceptual difference: The Programme Fund creates capital assets, namely, new roads, up-graded roads
etc. Administrative Expenses Fund meets day-to-day expenses, like travel expenses, office expenses etc.,
more in the nature of overheads, and not even indirect expenses related to works. The Administrative Expenses
are not debited to works, or each road. One reason, among others, for this is that the State Government meets
the expenditure on salaries etc. of the engineers and other staff; and part of the office expenses. Central
Governments will bear some expenses on travel and administration to the extent mentioned in paragraph
1.4.1. The balance of advantage has been to keep these expenses as revenue expenses and not add them on
to the works.
(ii) Programme Fund is meant for creation of assets. Therefore, Income and Expenditure Account will not be
prepared. The entire amount is a grant for capital expenditure on creation of assets; and expenditure cannot
be debited to Income and Expenditure account which is meant for revenue or consumption or routine or
overhead expenses. Its Balance Sheet shows the details of assets created.
(iii) Administrative Expenses Fund is meant for office expenses, therefore, an Income and Expenditure Account
has to be maintained. Expenditure does not create any tangible asset, except some laboratory equipment or
office assets like furniture, computers etc. Its Balance Sheet shows the unused amount of the grants and the
expenditure on assets etc.
4
(iv) Other differences of detail flow from the above three items.
(v) Programme Fund has another set of important accounts of the public works, namely:
Works Register to show progress of works on each package and on each road.
(a) Contractor’s Ledger
(b) Deposits of contractors
(c) Advances to Contractors
(d) Register of Security Deposits etc. etc.
(vi) In the Administrative Expenses Fund, the accounting restricts itself to General Ledgers with separate folios for
each kind of expenditure.
(vii) PIU’s follow the rules and procedures of the Public Works Department for the Programme Fund. They follow
the general financial rules of the State for Administrative Expenses.
1.6 MAJOR FEATURES OF THE PMGSY ACCOUNTING SYSTEM FOR ADMINISTRATIVE
EXPENSES FUND
The features of the PMGSY accounting system for the Administrative Expense Fund differ from the Government
system as follows:
(i) The district treasury pays the office expenses etc. and their record kept in a separate Cash Book. In the
PMGSY system, the PIU keeps accounts in a separate Cash Book, along with ledger, and prepares the
monthly account (of Receipts and Payments) and the Balance Sheet. In Government, there is no monthly
account for the office expenses.
(iii) Major, Minor and Detailed head of accounts applicable to Government accounts are not applicable to PMGSY.
The PMGSY accounting system has its own “Chart of Accounts”, one for Programme Fund and another for
Administrative Expenses Fund, modeled on the List of Major and Minor Heads of Accounts of the Union and
State Governments.
(iv) The public works divisions do not prepare monthly Balance Sheet for administrative expenses. The PMGSY
accounting system for administrative Expenses has the following set of accounts prepared each month:
(a) Monthly account to show the Receipts and Payments;
(b) Monthly Income and Expenditure Account to show the details of receipts and expenditure.
(c) Monthly Balance Sheet to show the unused balances, and receivable and payables.
1.7 Major Similarities Between the Government and the PMGSY Accounting System
Major similarities between the Government system and the PMGSY accounting system are:
(a) Almost all the existing forms for various registers of expenses are common to the two systems. However, the
ledgers are new because Government offices do not keep them; the Accountant General does.
(b) The PIUs do not have a separate bank account. They operate on the bank account of the SRRDA. This is
common in the public works that operate on the State Government’s bank account.
(c) All the existing orders of the public works department, or equivalent, on the powers of the officers and other
procedural and legal requirements apply.
(d) The Comptroller and Auditor General of India will continue to audit the accounts of the SRRDAs and the PIUs.
However, each SRRDA will also appoint a Chartered Accountant for statutory audit of SRRDA and PIUs’
accounts.
5
CHAPTER 2
OPENING BALANCE SHEET AND DOUBLE ENTRY SYSTEM
2.1 OPENING BALANCE SHEET

2.1.1 PMGSY Administrative Expenses Fund started from March, 2004. MoRD remitted the funds for it to the
SRRDA which, in turn, distributed these to the PIUs.
The accounting system for the Administrative Fund comes into force from the 1st October, 2004, or such date as the
NRRDA agrees for a State. Therefore, each PIU will take stock of its assets, liabilities, income and expenses for the
period up to the 30th September, 2004; and prepare a Balance Sheet as on that date in the following format:
Balance Sheet of the PIU

As on the 30th September, 2004
Sl. Liabilities Amount Amount Sl. Assets Amount

No. (Inner (Outer No.
Column) Column)
1 Central Administrative Expense 1. Cash in hand
Fund received from the SRRDA (Sch-L1) 2. Bank Authorisation
Balance (Sch-A1)
Deduct Expenses: (Detail each 3. Imprest with staff
kind of expenses: 4. Miscellaneous Advances
Travelling exp. (Sch A2)
Data entry 5. Assets from the Central
Misc. Administrative Expenses
Internet charges approved by the
Computer Maintenance MORD (Schedule A3)
Stationery.
Fax, postage, courier etc.
Telephone Bills
Balance Available
2 State Administrative Expense 6. Assets from the State
Fund received from the SRRDA Administrative Expenses Fund
(Sch-L2) approved by the State
Deduct Expenditure (Detail each Government (Schedule A4)
kind of expenses:
Balance Available
3 Other Income (Sch. L3)
(For example, interest.)
4 Deposits Repayable (Sch. L4)
Total Total
2.1.2 The opening Balance Sheet, duly signed by the Divisional Officer and the Divisional Accountant, should be
sent to the SRRDA. The preparation of the above Balance Sheet does not require re-writing the accounts of the
PIU. Instead, the balances for each item already exist in the records and accounts books kept in the division should
be indicated.
6
2.1.3 SRRDA will prepare a similar Balance Sheet in the following format:
Balance Sheet of the SRRDA
As on the 30th September, 2004
Sl. Liabilities Amount Amount Sl. Assets Amount
No. (Inner (Outer No. Rs.
Column) Column)
Rs. Rs.
1 Central Administrative Expense 1 Cash in hand
Fund received from the 2 Bank Balance (including investments)
MoRD (Sch-L1) 3 Imprest with staff
Deduct SRRDA’s admissible expenses 4 Central Administrative
(Sch-L2) Expense Funds
Transferred to PIUs (Sch-A1)
Balance 5 State Administrative Expense Funds
transferred to PIUs (Sch A2)
6 Misc. Advances (Sch.A3)
2 State Administrative Expense Fund 7 Assets from the Central
received from the State Government Administrative Expenses
(Sch-L3) (Schedule A4)
Deduct Expenditure
3 SRRDA’s admissible expenses (Sch-L4) 8 Assets from the State
Balance Administrative Expenses approved
by the State Government (Schedule A5)
4 Other Income (Sch. L5) (For example,
interest.)
5 Deposits Repayable (Sch. L 6)
6 Bank Authorisations to PIUs outstanding
(Sch L7)
Total Total
2.1.4. The SRRDA will check the Balance Sheets of each PIUs to ensure its internal accuracy and that its figures
agree with the amount SRRDA transferred to the PIU. Thereafter, it will consolidate all the Balance Sheets.
2.1.5 To incorporate the opening Balance Sheet in the accounts, each PIU and the SRRDA will pass the necessary
transfer entries, as explained later.
2.1.6 The system of accounting for the Administrative Expenses requires each PIU and the SRRDA to prepare
each month:
(a) Monthly Account of Receipts and Payments;
(b) Income and Expenditure Account; and
(c) Balance Sheet.
2.1.7 Each PIU and the SRRDA will also prepare annual accounts consisting of account of Receipts and Payments,
Income and Expenditure, and the Balance Sheet.
2.2 DOUBLE ENTRY SYSTEM OF ACCOUNTING
SRRDA and the PIU will keep their accounts on the double entry system. This is also the system followed for the
Programme Fund. It will help to remember the following three principles of the double entry system:
i) Debit what comes in; Credit what goes out;
ii) Debit the receiver and Credit the giver.
iii) Debit the expenses and assets; Credit the income and liabilities.
2.3 DEPRECIATION
Since all the assets, albeit few, come from the grants from the MoRD or the State Government, the accounting
system does not provide for any depreciation for these assets. As and when the asset is written off, the corresponding
amount from the Administrative Expenses Fund will be reduced. Neither the Central Government nor the State
Government provide funds for the depreciation.
7
CHAPTER 3
DEFINITIONS
3.1 Unless there be something repugnant in the subject or context, the terms defined in this Chapter are used in
this Manual in the sense herein explained:-
(1) Accounts Officer - by whatever name designated, means head of the accounting division in the State Rural
Roads Development Agency (or equivalent) of the State Government or Union Territory Administrations
(2) Audit Officer - means any officer subordinate to or under the superintendence of the Comptroller and
Auditor General of India, who exercises audit functions.
(3) Auditor – means the chartered accountant appointed for audit of the SRRDA’s accounts or any of its PIUs.
(3A) Asset – asset mean goods, machinery, furniture with a long life, as distinct from consumables like stationery
etc.
(4) Bank means any office or branch of the Bank with which the State Rural Roads Development Agency has
entered into banking arrangements for the PMGSY.
(5) Book Transfer - This term is applied to the process whereby financial transactions which do not involve the
giving or receiving of cash, or of stock materials, brought to account. They usually represent liabilities and assets of
the PMGSY brought to account either by way of settlement or otherwise, but they may “also represent corrections
and amendments made in Cash, Stock, or Book Transfer transactions previously taken to account.
(6) Central Administrative Expenses Fund - means the funds provided by the Government of India, Ministry
of Rural Development for meeting specified administrative expenses of PMGSY.
(7) State Administrative Expenses Fund - means the funds provided by the State Government for meeting
specified administrative expenses of PMGSY.
(8) Chart of Accounts - see paragraph 4.2.
(9) Competent Authority - The term “Competent Authority” means the State Government or any other authority
to whom it may delegate the relevant power.
(10) Direction Office - This term indicates the office of an administrative officer who has one or more Divisional
Officers working under his orders and is not himself entrusted with the execution of works or with the receipt and
disbursement of PMGSY funds, e.g. Director General of Works/Chief Engineer or a Superintending Engineer, or a
Superintendent of Works; but if such an officer is also entrusted at any time with the receipt and disbursement of
PMGSY programme funds, he is treated as a Divisional Officer for the purposes of this Manual.
(11) Direction Officer - The head of a Direction Office is known by this designation.
Explanations: A person holding the rank of a Superintending or even a Chief Engineer is not a Direction Officer,
unless the direction of the business of one or more divisions is entrusted to him. Thus, a Superintending Engineer
employed on special duty is not a Direction Officer.
(12) Division and Divisional Office - These terms are used to denote respectively the executive charge held by
a Divisional Officer [Clause (13) below] and the head office of such a charge.
(13) Divisional Officer - This term is applied to an Executive Officer of the Public Works Department (or Rural
Engineering Department, or equivalent) and executing PMGSY works who is not subordinate to another Executive
or Disbursing Officer of the Department, even though the executive charge held by him may not be recognised as
a “Division” by the Government concerned. Thus, the officer in charge of an independent sub-division is also
treated as a Divisional Officer for the purpose of this Manual. See also clause (12).
8
(14) Executing Agency -The term means the department responsible for executing the PMGSY works through
its subordinate offices. Each State nominates one (or more) Executing Agency. An executing agency may be Public
Works Department / Rural Engineering Service / Organisation / Rural Works Department / Zilla Parishad / Panchayati
Raj Engineering Department etc. who have been in existence for a large number of years and have the necessary
experience, expertise and manpower for public works. It reports to the Nodal Department.
(15) Government - means the Central (Union) Government, the State Government or a Union Territory
Administration as the context may determine.
(16) Grant - Any grant received from the Government.
(17) Liabilities - when used in respect of administrative expenses account, this term includes all anticipated
charges which are adjustable as final charges, but have not been paid, regardless of whether or not they have
fallen due for payment, or having fallen due, or have not been placed to the credit of the persons concerned in an
account head. (For example, telephone bills received but not paid by the 31st March)
(18) Major Head - See Chart of Accounts
(19) Minor Head - See Chart of Accounts
(20) National Rural Roads Development Agency (NRRDA) - is the agency of the Ministry of Rural Development,
Government of India for vetting the proposals for rural roads, for issuing guidelines on technical, administrative,
finance and accounting matters for the efficient and economical implementation of PMGSY.
(21) Nodal Department - is the department to whom the State Government entrusts the overall responsibility for
implementation of the PMGSY in the State. It communicates with the Ministry of Rural Development on all matters
connected with the PMGSY.
(22) Office Expenses - The term means the recurring expenses for running a PIU or SRRDA of the nature
approved by the MoRD/State Government for the expenses they provide funds for.
(23) Programme Implementation Unit (PIU) - implements the programme generally in a district. However, at
the discretion of the State Government/Union Territory Administration with legislature it may operate in part of the
district or in more than one district. An officer of the rank of Executive Engineer heads it. It is same as a public works
division with similar duties and functions. PIU and Division are terms used interchangeably in this Manual.
(24) Sectional Officer - Sectional Officer is a non-gazetted official namely Junior Engineer/Sub-Engineer for
Civil Works who is placed in responsible executive charge of works or stores under the orders of the Officer-in-
charge of a recognised sub-division and the accounts of whose transactions are, therefore, ultimately incorporated
in those of the Sub-Division.
(25) Special Office - The Office of a Special Officer, vide clause (26).
(26) Special Officer (or Specialist Officer) - This term is applied in this Manual, to such officials of the Department
as are neither Divisional Officers nor officials subordinate to a Divisional Officer, and have no Divisional Officers
working under their control.
(27) Sub-divisional Officer - This designation is applied primarily to an official, whether a Gazetted Officer or
not, who holds the charge of a recognised sub-division subordinate to a Divisional Officer, when the immediate
executive charge of any works or stores has not been constituted into a regular sub-divisional charge, but is held by
the Divisional Officer himself, the latter is also treated as the sub-divisional officer in respect of such charge. When
a Divisional Officer holds the immediate charge of a recognised sub-division in addition to his own duties as the
executive head of the division, he is treated as the Sub-divisional Officer in respect of the charge of the Sub-
Division. Sub-divisions do not make any payments on behalf of the PMGSY works.
(28) Work - The term “work” when by itself, is used in a comprehensive sense and applies not only to works of
construction or repair, but also to other individual objects of expenditure connected with the supply, repair and
carriage of tools and plant, the supply or manufacture of other stores, or the operation of a workshop.
9
CHAPTER 4
OUTLINE OF THE ACCOUNTING SYSTEM OF THE ADMINISTRATIVE EXPENSES FUND
4.1 Classification of PMGSY Funds

4.1.1 (a) The PMGSY executes rural road works. The general principles followed in the classification of PMGSY
works are as follows:
I. Programme Fund. (a) MoRD provides the Programme Fund to SRRDA for the construction of roads, up-
gradation of roads, plantations, sign boards, and such other activities that MoRD or NRRDA may specify.
II. Administrative Expenses Fund. (a) MoRD provides the Administrative Expenses Funds to SRRDA for
various administrative expenses such as travel expenses, purchase of computers, telephone, internet charges,
stationery etc. The State Government may also provide administrative expenses fund for specific purposes.
(b) SRRDA keeps the funds in a separate bank account, called Administrative Expenses Fund. It authorizes the
PIUs to spend from it for various administrative expenses.
III. Maintenance Fund
(a) State Government primarily provides to SRRDA funds for the maintenance of rural roads.
(b) SRRDA keeps the funds in a separate bank account called Maintenance Fund. It authorizes the PIUs to spend
from it for the maintenance of rural roads.
(c) SRRDA and the PIUs keep separate and complete accounts of the receipts and expenditure from the Programme
Fund, Administrative Expenses Fund and Maintenance Fund.
4.1.2 The Administrative Expenses Fund transactions may be grouped under the heads indicated below:-
I. Income and Expenses (for interest and miscellaneous income; office and travel expenses).
II. Assets (for durable assets like laboratory equipment, receivables, advances).
III. Current Liabilities (for deposits repayable).
IV. Funds and Surpluses (for Central Administrative Expenses Fund, State Administrative Expenses Fund and
Surpluses).
4.2 CHART OF ACCOUNTS

The following chart of accounts of PMGSY Administrative Expenses Fund follows the pattern of the List of Major
and Minor Heads of Accounts for Government transactions. Transactions under its various Major Heads are divided
into Minor Heads. This chart governs all the classification of Receipts and Payments.
10
CHART OF ACCOUNTS FOR PMGSY ADMINISTRATIVE EXPENSES FUNDS
S. No. Head of Account Credit / Major Account Entry To be

Debit Head Head done by
Balance Number Code
1 2 3 4 5 6
51 Administrative Expenses Fund 51
51.01 Central Administrative Expenses Fund Credit 51.01 SRRDA
51.02 Central Administrative Expenses Funds transferred Debit 51.02 SRRDA
by SRRDA to PIU
51.03 Central Administrative Expenses Funds received by Credit 51.03 PIU
PIU from SRRDA
51.04 State Administrative Expenses Fund Credit 51.04 SRRDA
51.05 State Administrative Expenses Funds transferred Debit 51.05 SRRDA
by SRRDA to PIUs
51.06 State Administrative Expenses Fund received by Credit 51.06 PIU
PIU from SRRDA
51.07 Bank Authorization Account (Books of SRRDA) Credit 51.07 SRRDA
51.08 Bank Authorization Account (Books of PIU) Debit 51.08 PIU
51.09 Surpluses and Reserves Credit 51.09 SRRDA/PIU
52 Cash and Bank Balance 52
52.01 Cash in Chest Debit 52.01 SRRDA/PIU
52.02 Imprest with staff Debit 52.02 SRRDA/PIU
52.03 Bank Balance Debit 52.03 SRRDA
52.04 Fixed Deposits with the Bank Debit 52.04 SRRDA
53 Income Tax (Receivable) 53
53.01 Tax Deducted at source by others Debit 53.01 SRRDA
54 A. Administrative Expenses from Central Administrative 54
Expenses Fund
54.01 Travel Expenses Debit 54.01 SRRDA/PIU
54.02 Data Entry Costs Debit 54.02 SRRDA/PIU
54.03 Internet Charges Debit 54.03 SRRDA/PIU
54.04 Maintenance of Computer Debit 54.04 SRRDA/PIU
54.05 Stationery Debit 54.05 SRRDA/PIU
54.06 Fax, postage. Courier Debit 54.06 SRRDA/PIU
54.07 Telephone Debit 54.07 SRRDA/PIU
54.08 Outsourcing of execution and management functions Debit 54.08 SRRDA/PIU
54.09 Miscellaneous Office Expenses Debit 54.09 SRRDA/PIU
54.10 to Spare numbers available for future use Debit
54.19
55 SRRDA’ own expenses met from State Administrative 55
Expenses Fund
A. Establishment Expenses
55.01 Salary and Allowance Debit 55.01 SRRDA
55.02 Wages Debit 55.02 SRRDA
55.03 Overtime Allowances Debit 55.03 SRRDA
55.04 Medical Claims Debit 55.04 SRRDA
55.05 Leave Encashment Debit 55.05 SRRDA
11

Balance Number Code
1 2 3 4 5 6
55.06 to Available for future use
55.10
B. Office Expenses SRRDA
55.11 Office Rent, Taxes and Duties Debit 55.11 SRRDA
55.12 Travel Expenses Debit 55.12 SRRDA
55.13 Hiring of Vehicles Debit 55.13 SRRDA
55.14 Printing and Stationary Debit 55.14 SRRDA
55.15 Meetings Expenses Debit 55.15 SRRDA
55.16 Professional Services to the office Debit 55.16 SRRDA
55.17 Telephone- Office Debit 55.17 SRRDA
55.18 Telephone- Residential & Mobile Debit 55.18 SRRDA
55.19 Vehicle Maintenance Debit 55.19 SRRDA
55.20 Electricity Expenses Debit 55.20 SRRDA
55.21 Postage Expenses Debit 55.21 SRRDA
55.22 Repairs and Maintenance of Office Equipment Debit 55.22 SRRDA
55.23 Insurance Charges Debit 55.23 SRRDA
55.24 Miscellaneous Office Expenses Debit 55.24 SRRDA
55.40
C. Research, Training, and Human Resource
Development — Expenses met from State
55.41 Training 55.41 SRRDA
55.42 Workshops and Conferences 55.42 SRRDA
55.43 Professsional Services 55.43 SRRDA
55.44 Other Expenses 55.44 SRRDA
55.50
D. Publications, Advertisement and Publicity SRRDA
55.51 Publications 55.51 SRRDA
55.52 Advertisement and Publicity 55.52 SRRDA
55.53 Books Periodicals .and Audio Visual Mat. 55.53 SRRDA
55.54 to Spare numbers available for future use in different groups
55.60
56 A. World Bank
56.01 General Expenses Debit 56.01 SRRDA/PIU
56.02 Laboratory Equipment Debit 56.02 SRRDA/PIU
56.03 Computers and Peripherals Debit 56.03 SRRDA/PIU
56.04 Expenditure on Other Assets Debit 56.04 SRRDA/PIU
12

Balance Number Code
1 2 3 4 5 6
56.05 Technical Examiners Debit 56.05 SRRDA/PIU
56.06 Technical Assistance Debit 56.06 SRRDA/PIU
56.07 to Spare Numbers available for future use
55.60
B. Asian Development Bank
56.31 Project Implementation Consultants Debit 56.31 SRRDA/PIU
56.32 Others Debit 56.32 SRRDA/PIU
56.33 Spare Numbers available for future use
to 57
58 Capital Expenditure from Central Administrative 58
Expenses Fund
58.01 Laboratory Equipment Debit 58.01 SRRDA/PIU
58.02 Computers and Pheripherals Equipment Debit 58.02 SRRDA/PIU
59 Capital Expenditure from State Administrative 59

Expenses Fund
59.01 Purchase/renovation of Office Area Debit 59.01 SRRDA/PIU
59.02 Furniture and Furnishing of the office Debit 59.02 SRRDA/PIU
59.03 Vehicles Debit 59.03 SRRDA/PIU
59.04 Equipments & Machinery Debit 59.04 SRRDA/PIU
59.05 Computers & peripherals Debit 59.05 SRRDA/PIU
59.06 to Spare Numbers for Future Use

59.10
60 Incidental Receipts 60
60.01 Interest received from Bank Credit 60.01 SRRDA/PIU
60.02 Miscellaneous Receipts Credit 60.02 SRRDA/PIU
61 Debtors Debit 61
61.01 Miscellaneous Advances Debit 61.01 SRRDA/PIU
62 Creditors 62
62.01 Unpaid bills Credit 62.01 SRRDA/PIU
62.02 Deposits from suppliers Credit 62.02 SRRDA/PIU
62.03 Statutory Deductions of Income-tax Credit 62.03 SRRDA/PIU
62.04 Statutory Deductions of Value-Added Credit 62.04 SRRDA/PIU
Tax/Commercial tax etc.
62.05 Other Deductions Credit 62.05 SRRDA/PIU
63 Transitional Heads 63
63.01 Balance Sheet Account Debit/ Credit 63.01 SRRDA/PIU
63.02 Income and Expenditure Account Debit/ Credit 63.02 SRRDA/PIU
13
EXPLANATORY NOTES ON CHART OF ACCOUNTS FOR

PMGSY - ADMINISTRATIVE EXPENSES FUNDS
ACCOUNT EXPLANATORY NOTES
CODE
1 2
51.01 This account gets credit for the fund SRRDA receives from MoRD. The admissible expenditure gets debited
to this account by transfer from the Income and Expenditure Account.
51.02 This account gets debit for the Central funds SRRDA transfers to the PIU. It will get credit for the amount,
if any, received back from PIU.
51.03 This account gets credit for Central Administrative Expenses Fund a PIU gets from SRRDA. The admissible
expenditure gets debited to this account by transfer from the Income and Expenditure Account. Amounts
PIU returns to SRRDA get credited to this account.
51.04 This account gets credit for funds SRRDA receives from the State Government. The admissible expenditure
gets debited to this account by transfer from the Income and Expenditure Account.
51.05 This account gets debit for the State funds SRRDA transfers to the PIU. It will get credit for the amount, if
any, received back from PIU.
51.06 This account gets credit for the State Administrative Expenses fund PIU receives from SRRDA. The
admissible expenditure gets debited to this account by transfer from the Income and Expenditure Account.
Amounts returned by PIU to SRRDA shall also be credited to this account.
51.07 This head covers the amounts that SRRDA transfers to PIU through Bank Authorisation. SRRDA shall
credit this account code in its Bank Authorisation Transfer Entry Book.On receipt of statement for the
cheques issued by the PIU, SRRDA shall account for the amount of cheques drawn by the PIU on the
payment side of its Cash Book in bank column by showing this account head in the classification column.
51.08 This account head gets credit for the Bank Authorisation PIU receives from SRRDA, on receipt side of
PIU’s Cash Book in Bank Authorisation column.PIU accounts for all payments made by it by cheque on the
payment side of its Cash Book in the “Bank Authorisation” column.PIU shall not maintain any ledger account
of Bank Authorisation; its Cash Book with column “Bank Authorisation” on the receipt as well the payment
side serves the purpose of ledger.
51.09 Surpluses and Reserves represent the interest earned, and other miscellaneous income, transferred to
this head through the Income and Expenditure Account.
52.01 Cash in Chest is self -explanatory. Cash balance appearing in Cash Book at the close of month shall be
shown against this Account Code in the Monthly Account.
52.02 Imprest issued to staff for petty expenses / purchases etc. shall be debited to this account code. On receipt
of account from the imprest holder this account code shall be adjusted by debit to final head of account
code relating to expenses. This Account code is to be finally closed with NIL balance at the end of the year.
52.03 SRRDA will keep all the funds received — whether from MORD or the State Government — in one account
named PMGSY Adminstrative Expenses Fund in accordance with the PMGSY guidelines.
52.04 The tripartite agreement with the Bank provides for automatic investment of surplus funds with the bank in
its fixed deposits. This head is for this purpose.
53.01 Tax deducted at source by the bank from the amount of interest on deposits etc. shall be debited to this
Head of Account.
54.01 to 54.09 These account codes are self – explanatory.
54.10 to 54.19 These account codes are self – explanatory. NRRDA will assign the actual description for these codes.
55.51 to 55.53 These account codes are self – explanatory
14

56.33 to 57 These account codes are self – explanatory. NRRDA will assign the actual description for these codes.
60.01 and 60.02 These account codes are self – explanatory
61.01 The account code is self-explanatory.
63.01 This account code shall be operated to account for the assets and liabilities of the administrative expenses
before the new accounting system comes into force. The following adjustment shall be done to account for
the assets and liabilities:
Debit: Balance Sheet Account
Credit: Liabilities Debit
Debit : Assets
Credit: Balance Sheet Account. Further, at the start of each financial year, the accounts will be opened
from the last year’s Balance Sheet in similarly.
63.02 Income and Expenditure Account will be credited or debited by transfer of all Income and Expenditure
during the year. Its balance will be carried over to the Central or State administrative Expenses Fund, as
the case may be.
Notes:-
1. Account Code Number 51.01 and 51.02 for the receipt / transfer of funds shall be operated by the SRRDA
only.
2. Account Head Code 51.03 for the receipt of funds shall be operated by the PIU’s only.
3. At the close of each financial year:-
i) Administrative Expenses under the heads 54.01 to 54.09 shall be transferred to the account head 63.02
Income and Expenditure Account. Their total will be transferred to Account Code Number 51.01 or 51.03.
ii) Incidental receipts shall be transferred to the account head 63.02 - Income and Expenditure Account.
Their total will be then transferred to the Surplus and Reserves, Account Code No. 51.09.
iii) Balance Sheet as on 31st March shall show only the unspent amount of the fund on liability side and
Cash / Bank Balance and assets on Assets side.
4. Subsidiary registers for administrative / incidental receipts shall be maintained as laid down by the State
Government.
5. Unspent balance amount of the fund as on 31st March shall be carried forward to the next year’s account.
15
CHAPTER 5
RELATIONS WITH ACCOUNTS OFFICER
5.1 GENERAL
5.1.1 The Divisional Officer, as the primary Disbursing Officer of the Division, is responsible not only for the
financial regularity of the transactions of the whole division but also for the maintenance of accounts of the transactions
correctly and in accordance with the rules in force.
He is further required to submit his accounts to the Accounts Officer for control and check and preparing the
consolidated accounts of the PMGSY for the State.
NOTE: The accounts returns which have ordinarily to be submitted to SRRDA are enumerated in Chapter 12, but
the Accounts Officer is authorised to call for such additional accounts, registers, documents and subsidiary papers
having relation thereto, as he may require for the elucidation thereof.
5.1.2 The Divisional Officer is responsible to see that the accounts of his division are not allowed to fall into
arrears; but if arrears or confusion arise which, in his opinion, cannot be cleared without the assistance of the
Accounts Officer, he should at once apply for such assistance.
5.1.3 The Divisional Officers will be placed in direct account with the accredited bank of the SRRDA on which they
will draw either self-cheques or cheques in favour of payees for payment of all bills passed by them after exercising
the requisite checks prescribed by the Executing Agency for the divisions. The SRRDA will issue, in advance, the
quarterly bank authorisation authority to each Divisional Office after considering its estimated requirements for the
quarter.
NOTE: The Divisional Accountants will continue to be responsible for exercising preliminary checks on the initial
accounts, bills, vouchers etc. in the capacity as internal checkers. They will also be responsible for compiling the
divisional accounts of PMGSY as hitherto.
Post Check in the Accounts Office
5.1.4 On receipt of the monthly account, Income and Expenditure Account and the monthly Balance Sheet,
supported by schedules, from the Divisional Officers, the SRRDA will check them, and incorporate in its books the
details of cheques issued by the PIUs. It will check the amount of the Administrative Expenses Fund shown in the
monthly accounts with the amounts shown in its own books. SRRDA will take action to get the mistakes corrected,
whether in its own books or those of the PIU. Payments shown in the monthly ‘Bank Authorisation, Utilisation and
Reconciliation Statement received from the Divisional Office will be checked with the payment scrolls received
directly from the bank. One copy of the scroll will be returned to the bank from which it was received with a
certificate of confirmation of the figures shown therein. Discrepancies, if any, should be got reconciled with the
banks and the Divisional Officers. The Divisional Officer will also, on receipt of his copy of the scroll, reconcile it with
his record.
5.2 DIVISIONAL ACCOUNTANT

5.2.1 To assist Divisional Officers in the discharge of their responsibilities referred to in paragraph 5.1.1, each PIU
will have a Divisional Accountant. The term Divisional Accountant will include Senior Accounts Officer, Accounts
Officer, Accounts Manager, Divisional Accounts Officer Grade II, Divisional Accounts Officer Grade I, Senior Divisional
Accounts Officer and Assistant Account Officer.
5.2.2 (a) The functions of the Divisional Accountants are three fold:-
(i) As accountant, i.e., as the compiler of the accounts of the division in accordance with the prescribed rules and
from the data furnished to him;
16
(ii) as internal checker charged with the responsibility of applying certain preliminary checks to the initial accounts,
vouchers, etc.; and
(iii) as financial assistant, i.e., as the general assistant and adviser to the Divisional Officer in all matters relating
to the accounts and budget estimates or to the operation of financial rules generally.
(b) In the discharge of these duties, he is expected to keep himself fully conversant with all sanctions and orders
passing through the office and with other proceedings of the Divisional Officer and his subordinates which
may affect the estimate or accounts of actual or anticipated receipts and charges. He should advise the
Divisional Officer on the financial effect of all proposals for expenditure and keep a watch, as far as possible,
over all the liabilities against the grants and authorizations of the divisional office as they are incurred.
(c) The Divisional Officer should see that he is given the fullest opportunity of becoming conversant with these
sanctions, orders and proceedings. To enable him to discharge his duties efficiently, the Divisional Accountant
is treated as the senior member of the office establishment of the division though his position is analogous to
that of a Sub-Divisional Officer.
5.2.3 The Divisional Accountant is expected to see that the rules and orders in force are observed in respect of all
the transactions of the division which come within his sphere of duties. If he considers that any transaction or order
affecting receipts and expenditure is such as would be challenged by the Accounts Officer if the internal check
entrusted to the Accountant were applied by the former, it is his duty to bring this fact to the notice of the Divisional
Officer with a statement of his reasons, and to obtain the orders of that Officer. It will then be his duty to comply with
the orders of the Divisional Officer, but if he has been overruled and is not satisfied with the decision, he should at
the same time make a brief note of the case in the Register of Divisional Accountant’s Objections, PMGSY/GEN/F-
59 and lay the Register before the Divisional Officer, so that the latter may have an opportunity either of accepting
the Divisional Accountant’s advice on reconsideration and ordering action accordingly, or of recording for the
information of the Accounts Officer, his reasons for disregarding that advice. An objection entered in this register
should not be considered as finally disposed of until it has been reviewed by the Accounts Officer, for whose
inspection the register should be available at all times.
NOTE: If no inspection (by Accounts Officer) takes place in a year and entries have been made in the Register
during the period since the last inspection, the Register or, if the entries are few, an extract therefrom should be
submitted to the Accounts Officer in the month of April for review.
5.2.4 (i) The Divisional Accountant is responsible for the safe custody of documents during the period when they
remain in the Accounts Branch until submission to the Divisional Officer.
(ii) He is responsible for the arrangements for checking the bills for payment, i.e., for seeing that satisfactory and
efficient arrangements are made for checking.
(iii) He should conduct personally a test check of the computed and checked tenders for supply of office material
to satisfy himself reasonably that the checking work has been properly done; and
(iv) He should see that the comparative statement correctly incorporates the totals as checked on the individual
tenders.
5.2.5 (a) The Divisional Accountant should bring to the Divisional Officer’s notice all instances in which subordinate
officers exceed the financial limitations on their powers placed by the Divisional Officer or higher authority.
(b) He may further be required by the Divisional Officer to undertake on his behalf, such other scrutiny of the
accounts of the receipts and disbursements of subordinate officers falling within the Divisional Officer’s own
powers of sanction, as the latter may consider necessary.
(c) The Divisional Accountant should not, as a rule, be required to receive, or pay out, cash but in cases where the
monetary transactions at the headquarters of the Divisional 0ffice are not large, either in number or in amount,
the Divisional Officer may, on his own responsibility and with the previous consent of the Executing Agency,
entrust the receipt and disbursement of cash to the Divisional Accountant. The Divisional Accountant should
not, however, be normally authorised to issue final receipts in Form PMGSY/IA/F-5 over his own signature.
17
5.2.6 The Divisional Accountant is further required to inspect periodically under the orders of the Divisional Officer,
the accounts records of Sub-Divisional Officers and to check a percentage of the initial accounts. The defects
noticed should be reported to the Divisional Officer for orders, but the Divisional Accountant will be responsible, as
far as possible, for explaining personally the defects of procedure and for imparting necessary instructions thereon
to the Sub-Divisional Officers and their staff.
The result of these inspections should be placed on record for the inspection of the Accounts Officer, but serious
financial irregularities should be reported at once for the information of that officer, even though set right under the
orders of competent authority. All defalcations or losses of public money, stores or other property should be reported
immediately to the Accounts Officer and other authorities concerned in accordance with such rules or procedure as
may have been prescribed.
5.2.7 The Divisional Officer has a right to seek the advice of the Accounts Officer in all matters connected with the
accounts of his PIU or the application of financial rules and orders concerning which there may be any doubt. It will
usually be desirable, however, that he shall first obtain the advice of the Divisional Accountant who is specially
trained for this duty, and this should be done in writing in all cases of importance.
5.3 INSPECTION BY THE AUDIT OFFICER/AUDITOR/ACCOUNTS OFFICERS/INTERNAL

AUDITORS
The Audit Officer/Auditor/Accounts Officers/Internal Auditors arrange for the periodical audit and local inspection of
the accounts of divisional and sub-divisional offices, and the Divisional Officer is responsible that the initial accounts
and other connected records are made available for audit and inspection. Inspecting Officers are required, if possible,
to discuss the drafts of their reports with the heads of the office inspected, before submitting them to the respective
heads of their offices. And for this purpose, it is desirable that the head of the office inspected should be present at
the inspection unless his presence is urgently required elsewhere.
5.4 COMMUNICATION OF SANCTIONS TO ACCOUNTS OFFICER

5.4.1 As a general rule every sanctioning authority, namely, NRRDA for the Ministry of Rural Development and its
own sanctions will keep a separate file, marked “Audit”. Similarly SRRDA will keep a file marked “Audit” for sanctions
from MoRD, NRRDA, Nodal Department and the Executing Agency, and its own sanctions. This will help audit to
relate the expenditure with the sanctions of the competent authorities. The Audit Officer/Auditor/Accounts Officers/
Internal Auditors will have an easy availability of these orders and sanctions to facilitate their work. Some typical
examples of these are:
Sanctions to PMGSY works with their sanctioned estimates, All Central and State Government Order and Guidelines
on the PMGSY, Financial Sanctions to contract agreements
5.4.2 Similarly, PIU should maintain in a separate file in which copies of all the sanctions of MoRD, SRRDA and
Executing Agency shall be kept.
18
CHAPTER 6
SANCTIONS
6.1 INTRODUCTORY
6.1 (a) Expenditure from the Administrative Expenses fund can only be incurred:
(i) if sanction, either special or general, of competent authority has been obtained authorising the expenditure;
(ii) if funds to cover the charges during the year have been provided by competent authority; and
NOTE: When, an intimation is received from the Executing Agency that divisional officer is incurring an unauthorised
liability on a work, the Accounts Officer will bring the facts instantly to the notice of the Nodal Department through
the head of SRRDA so that the requisite steps may be taken to stop the work. SRRDA also has the authority to stop
the release of funds for that work.
(iii) if the expenditure conforms to the relevant provisions of the financial rules, regulations and orders issued by
competent authority.
(b) A Divisional Officer is not authorized to make payments, from the PMGSY Administrative Expenses fund,
chargeable to the accounts of other divisional officers, departments of Government, or of non-Government works,
and repayments of others’ deposits. It needs specific authority from the NRRDA to make payments on behalf of the
SRRDA, as the SRRDA itself is competent to make payments.
6.2 RE-APPROPRIATION OF FUNDS

(a) Re-appropriation of funds from one head of expenditure (for example, stationery) to another object head of
expenditure (for example, telephone expenses) is not permissible, if the SRRDA’s allotment specifies each
kind of expenditure. SRRDA should take note that the liability of the MoRD, Government of India, for
Administrative Expenses is restricted to the amount it sanctions. Similarly, the liability of the State Government
is limited to the amount sanctioned and received by SRRDA. SRRDA will be responsible for any irregularity in
this regards. Divisional officers will be held responsible for incurring liabilities without receiving bank
authorizations to cover the expenditure. No payment will be made on the promise that the State Government
or MoRD has agreed to provide funds. Availability of funds is crucial to the credibility of the financial system.
The SRRDA must receive the funds before it can authorise any payments.
(b) PMGSY release the administrative expenses fund with reference to the approved estimates of rural roads.
Therefore, their use is related to the period of the completion of road works. Any savings will be regulated by
the MoRD/NRRDA orders.
6.3 WATCHING OF ACTUALS

6.3.1 It is an important function of the Divisional Officer to keep a watch over the expenditure to keep it within the
sanctioned budget. He should accordingly keep himself informed of such circumstances as may affect the smooth
running of the office in order to take early steps for remedial action.
6.3.2 It will be found convenient, in practice, to adopt the plan indicated below:
(a) The progress of expenditure on office expenses and travel expenses should be watched individually month by
month, through the ledger and the Income and Expenditure Account.
(b) In this review of expenditure un-discharged liabilities play an important part and their effect on individual and
lump sum sanctions should, therefore, be watched.
19
CHAPTER 7
CASH AND STORES
7.1 INTRODUCTORY
7.1.1 The term “cash” as used in this chapter, includes legal tender coin, notes, deposit-at-call receipts and drafts
payable on demand. A small supply of one rupee revenue stamps may be kept as part of the cash balance.
Note 1: (1) Government securities, (2) deposit receipts of banks (3) debentures and (4) bonds, accepted as security
deposit as per terms and conditions of bidding documents or contracts are not to be treated as cash.
Note 2: Divisional Officer may realise in cash (namely in legal tender coins or notes) or by drafts (and not cheques)
drawn on any local branch of a scheduled bank, dues or other money receivable on PMGSY Administrative Expenses
Fund account unless specially authorised to receive higher amounts in cash. Divisional Officer may normally receive
cash up to an amount not exceeding Rs.1,000 (one thousand) in each case. The acceptance of counterfeit coins or
notes shall be regarded as a loss of cash.
Note 3: Bank drafts tendered in payment of PMGSY revenues, dues, etc.-(1) (a) Bank drafts drawn on local branch
of a scheduled bank may be accepted by Divisional Officer in payment of PMGSY dues subject to the provisions of
special instructions, if any, issued by SRRDA in consultation with the State Government and the NRRDA/Ministry
of Rural Development. The bank draft should be crossed by the drawer before tendering. However, until they are
cleared, the PMGSY cannot admit that payment has been received; consequently, the receipt of the draft alone
may be acknowledged when it is tendered. A formal payment receipt shall be given to the tenderer (or sent to his
address wherever such an arrangement is envisaged) after the draft has been cleared. The preliminary
acknowledgement of the receipt of the of the draft, will be given in the form indicated below by the Divisional Officer:
“Received draft number............................ for Rs............................. drawn on............................ on account of
............................ ”.
Note 4: All bank drafts will be drawn in favour of the SRRDA and deposited by the PIU in SRRDA’s account.
7.1.2 The Divisional Officer is the primary Disbursing Officer of the division, and all realisations and payments on
PMGSY Administrative Expenses Fund account made by his subordinates are made on his behalf and on his
responsibility.
7.1.3 Every Officer is personally responsible for the money which passes through his hands and for the prompt
record of Receipts and Payments in the prescribed accounts as well as for the correctness of the account in every
respect. The private cash or accounts of members of the PIU or the State funds should not be mixed up with the
PMGSY cash or accounts.
7.1.4 (a) If the Divisional Officer receives information from the Accounts Officer that moneys have been incorrectly
withdrawn and that a certain sum should be recovered in respect of any bill passed by him, he shall effect the
recovery without delay and without regard to any correspondence undertaken or contemplated with reference to
the retrenchment order; and he shall, without delay, repay the sum in such manner as the Accounts Officer may
direct.
(b) A Divisional Officer supplied with funds for expenditure shall be responsible for such funds until an account of
them has been rendered to the satisfaction of the Accounts Officer concerned. He shall also be responsible for
seeing that payments are made to persons entitled to receive them.
7.2 MODES OF OBTAINING CASH

7.2.1 (a) The Divisional Officer will be placed in direct account with the accredited Bank of the SRRDA on which he
will draw cheques for payment of all bills passed by him after exercising the requisite prescribed checks.
20
Note: The Empowered Officer of the SRRDA would allow drawing of self-cheques for some expenditure. Payment
to Government organizations and authorities providing public services like telephone, internet etc. should be paid
by cheque, barring exceptional circumstances. SRRDA may also lay down guidelines. He may lay down suitable
limits on quarterly payments. Standing instructions will be issued to the Bank Branches by the Empowered Officer
in this regard.
(b) No Expenditure can be incurred out of the PMGSY Administrative Expenses Fund in anticipation of subsequent
approval by the competent authority.
7.2.2 The Divisional Officer is permitted to make payments from the PMGSY Administrative Expenses Fund only
of bills of Administrative Expenses, as specified in the Chart of Accounts, including travel expenses, duly approved
by the competent authority.
7.2.3 The appropriation of receipts to expenditure in the PMGSY accounts is strictly prohibited.
7.2.4 No officer is authorised to draw cheques on any bank other than the accredited bank with which he is placed
in funds. The transactions involving payments to be made by Divisional Officer outside the Divisional headquarters
should be settled by Bank Drafts.
7.2.5 The employment of Group ‘D’/IVth officials to fetch or carry money should be discouraged. When it is absolutely
necessary to employ a Group ‘D’ employee for this purpose, a man of some length of service and proved
trustworthiness should only be selected and in all cases, when the amount to be handled is large one or more
guards should be sent to accompany the messenger.
7.2.6 Petty office expenses should be paid in cash. For these it is permissible to draw money from the accredited
bank by cheque to replenish the cash chest. The Divisional Officer must, however, draw cheques for the minimum
of cash actually required to meet current requirement. SRRDA will set this limit.
7.2.7 In drawing cheques, the Drawing and Disbursing Officer should be guided by the following rule:
(1) Cheques on the accredited bank shall be drawn on forms contained in cheque books supplied by the accredited
bank to the authorized signatory of the PIU.
(2) Cheques will be crossed accounts payee only, unless the Divisional Officer orders in writing to be otherwise.
All cheques above the amount specified in the Income-tax Act will be issued account payee only. (Note: This
does not apply to self-cheques drawn to keep cash in the chest for petty payments.)
(3) Post-dated or pre-dated cheques will not be issued.
(4) The Divisional Officer should ensure that sufficient bank authorization exists to cover the amount of the cheque
issued. It is an offence to issue a cheque without ensuring adequate bank balance.
(5) A cheque once crossed will not be un-crossed in any circumstances. The proper course will be to cancel it and
issue another cheque.
7.2.8 Period of validity of a cheque. The period of currency of cheques will be determined according to regulations
the accredited bank follows. This is six months at present.
7.2.9 Revalidation of the time-barred cheque by the Cheque drawing Divisional Officer is not permissible irrespective
of the date of its drawal. A fresh cheque should be issued in all such cases.
Procedure for Cancellation of a Cheque.
7.2.10 (i) When it is necessary to cancel a cheque, in cases where the cheque is not issued, its cancellation should
be recorded with dated signature on the counterfoil and the cheque should be destroyed;
(ii) where it is issued and withdrawn, after similar note on its counterfoil, it should be defaced; and forwarded to
the Accounts Officer by the PIU and the entries in the accounts should be suitably reversed;
(iii) if the cheque is not in the drawer’s possession, after satisfying himself with reference to his records (namely,
payment and bank scrolls and register of cheques delivered) that it is not paid, he should promptly send an
intimation by registered post (acknowledgement due) to the branch bank on which it is drawn to stop payment
of the cheque. He should also inform the Accounts Officer. If the currency of the cheque has not expired at the
21
time of sending the intimation, the bank shall acknowledge in writing that it has kept a note of the ‘stop
payment’ order.
(iv) A cheque remaining unpaid for any cause, six months after the month of its issue and not surrendered for
issue of a fresh cheque should be cancelled in the manner indicated in clause (iii) with the difference that no
acknowledgement of the stop payment order may be insisted from the bank. Its amount should also be written
back in the accounts.
(v) A time-barred cheque returned to the drawing officer for renewal should not be destroyed. A reverse entry in
the accounts should be suitably passed, crediting the amount to the head to which it was debited when the
cheque was issued. The cheque drawing officer should cancel the cheque under his signature. The cancelled
cheque should be treated as a voucher/sub-voucher for issuing a fresh cheque in lieu thereof and the fact of
issuing fresh cheque should be mentioned on it.
7.2.11 (i) If a request is received by the cheque drawing officer for issue of a fresh cheque in lieu of a cheque which
is alleged to have been lost, within a period of one year from the date of issue of original cheque, he should send an
intimation by registered post (acknowledgement due) to the bank drawn upon regarding the alleged loss of the
cheque and advise it to stop payment if the cheque is presented for payment thereafter. If the currency of the
cheque has not expired at the time of sending such an intimation, the bank shall acknowledge in writing in the form
given below:
“We acknowledge receipt of your Letter No.............. dated ...............and advice having noted to stop payment
of cheque No. ..................dated ................. for Rs. ................ Rupees ................... favouring……………. (the
name of the payee). In this connection, it is certified, that cheque No........... dated ........... for Rs.................
reported by the drawing officer to have been drawn by him on this bank in favour of ............. will not be paid if
presented thereafter.”
(ii) In case, however, the currency of the cheque alleged to have been lost has expired when the intimation
regarding the loss of the cheque is sent to the bank, no acknowledgement of the “stop payment order” may be
insisted upon from the bank; the postal acknowledgement may be treated as sufficient for the record of the
cheque drawing officer. On receipt of acknowledgement from the bank the cheque drawing officer will send a
copy thereof to the Accounts Officer for issue of a non-payment certificate. On receiving a copy of this
acknowledgement from the said cheque drawing officer, the Accounts Officer concerned will, after verification
of his relevant records i.e. register of cheque paid, etc. and after keeping a suitable note against the relevant-
entry in that register, issue a non-payment certificate to the Divisional Officer in the following form:
“Certified that cheque No. ...................... dated ................. for Rs......................... reported by .................
(the drawing officer) to have been drawn by him on..................... branch of ........................ bank in
favour of .................... has been /not been paid”.
Accounts officer will also obtain a similar certificate from the bank.
The Divisional Officer will note particulars of the non-payment certificate received by him against the relevant
entry in the office copy of the schedule of cheques issued attached to the monthly Balance Sheet that the
original cheque has not been paid and it has been ‘stopped’ from payment. A similar note will also be made by
him on the counterfoil of that cheque and office copy of the relevant paid voucher before issuing a fresh
cheque in lieu thereof, and in the manual system of accounting, against the original entry in the Cash Book.
(iii) The Party requesting for the issuance of a fresh cheque in lieu of the lost one should execute an indemnity
bond in the form prescribed by the State Government. However, in the case of a Government Department,
Public Undertaking wholly owned by the State Government of the PIU, or the Central Government, or the
bank, the execution of such an indemnity bond is not necessary but a fresh cheque should in these cases be
issued only on receipt of a certificate that the cheque alleged to have been lost was not received by them or
having’ received the same, it was lost and further that it will be returned to the cheque drawing officer if found
afterwards.
(iv) On completion of the requirements in clauses (i) to (iii), the cheque drawing officer may issue a fresh cheque
in lieu of the lost one by passing the necessary entries, namely reversing the entry for the issue of the original
cheques and a fresh entry for the issue of the new cheque.
22
(v) If it is found afterwards that the original cheque had been paid, the cheque drawing officer will take up the
matter with the paying branch telegraphically and stop payment of the renewed cheque if not already paid. He
will also reverse the entries made in the relevant record (including counterfoils) on this account on receipt of
confirmation of this fact from the paying branch. In case the renewed cheque is reported to have been paid by
then, he will place the paid amount under the head of account “Miscellaneous Advances” till the matter is
investigated and the amount is recovered or written off.
7.3 RECEIPT OF MONEY

I. Accounting Procedure
7.3.1 When money is received by PIU or SRRDA on behalf of PMGSY, it should at once be brought to account in
the Cash Book and a receipt in Form PMGSY/IA/F-5 should invariably be granted to the payer unless the use of
Cash Memo has been prescribed by SRRDA. If, however, the amount be realized by recovery from a payment
made on a bill or other voucher setting forth full particulars of the deduction, a receipt should be granted only if
specially desired by the payee, but the fact of the recovery having been made by deduction from the payment
voucher should be clearly recorded on the receipt.
NOTE 1: Final acquaintance for drafts on local banks accepted under proper authority should not be given to the
payer until they have been cleared.
NOTE 2: Before an officer signs a receipt in Form PMGSY/IA/F-5 for cash actually received by him, he should see
that the receipt of the money has been duly recorded in his Cash Book, and in token of this check the entry in the
Cash Book should be initialled and dated at the same time.
7.3.2 Drafts of private individuals if accepted by PIU in payment of PMGSY dues on Administrative Expenses
Account should be treated as cash, vide paragraph 7.1.1 and entered in the Cash Book in the ordinary way just like
other cash transactions. When these are sent to the bank for credit to the account of SRRDA, they should be shown
in the cash column of the payment side of the Cash Book as “Remittances to SRRDA with the classification as
51.03 Central Administrative Expenses Fund entered in the Cash Book.
NOTE: When drafts accepted from private individuals are dis-honoured on presentation to the banks, the original
entries on both the sides of the Cash Books should be reversed.
7.3.3 Receipts in Form PMGSY/IA/F-5 can be issued only by Divisional Officers,
NOTE: A divisional officer should not issue any duplicates or copies of receipts granted for money received on the
allegation that the originals have been lost. If any necessity arises for such a document, a certificate may be given
that on a specified day a certain sum on a certain account was received from a certain person. This prohibition
extends only to the issue of duplicates on the allegation that the originals have been lost and does not-apply to
cases authorised by special orders of the Government in which duplicates have to be prepared and tendered with
originals.
7.3.4 If an officer of the PIU, who is not in charge of a Cash Book, receives money on behalf of PMGSY at
exceptional times, he should not mix it up with the imprest or any other cash in his charge, but pay or remit it, at the
earliest opportunity, to his Divisional Officer. The full particulars of receipt including the date of its realisation should
be forwarded immediately to enable him to make the necessary entries in the Cash Book. The record of the
transaction will be in the correspondence and not in the imprest account of receiving officer.
II. DISPOSAL OF RECEIPTS

7.3.5 Moneys realised by officers of the PIU or the SRRDA should be paid, as soon as possible, into the accredited
bank. A Divisional Officer, however, is not permitted to make use of cash receipt even temporarily for current
expenditure.
7.4 PAYMENTS
I. Manner of Payment
7.4.1 All payments which officers authorised to draw cheques have to make should he made by cheques; but see
also paragraph 7.2.6 for payment in cash.
23
7.4.2 It is also permissible to make payments to suppliers of stores by obtaining bank drafts at the latter’s request
as the accredited bank will issue the draft without any charge.
7.4.3 As a rule, no cheque should be drawn until it is intended to be paid away and cheques drawn in favour of
suppliers and others should be made over to them by the disburser direct; but the disburser may be assisted in
making disbursements by a cashier appointed for the purpose under paragraph 7.8.2. The occasional delivery of
cheques through a subordinate may be permitted at the discretion and on the responsibility of the disbursers. In
such cases the subordinate should make no entry in any accounts which he keeps, as a payment made by cheques
should appear in the cash account of the Disbursing Officer who draws the cheques and the subordinate’s record
will be in his correspondence.
NOTE: It is a serious irregularity to draw cheques and keep them in the cash chest at the close of the financial year
for the purpose of showing the full amount of grant as utilized.
II. Bills
7.4.4 General instructions regarding the form of bills and their preparation, completion and stamping are laid
down in the Treasury Rules of the State Governments. As far as possible, the particular form of bill applicable to the
case should be used. Suppliers of stores and others should be encouraged to submit their bills and claims in proper
prescribed forms. But bills not prepared on such forms should not be rejected if they set forth the necessary details
of the claims. In such cases, the additional particulars required should be added by the Disbursing Officer.
III. Vouchers
7.4.5 As a general rule, every payment including repayment of money previously lodged with the PIU or SRRDA
for whatever purpose, must be supported by a voucher setting forth full and clear particulars of the claim and all
information necessary for its proper classification and identification in the accounts. The full name of the head of
account, to which the charges admitted on a voucher are debitable or to which the deductions or other credits
shown on the voucher are credited should be clearly indicated on it in the space provided for the purpose or in some
prominent position.
NOTE: When it is not possible to support a payment by a voucher or by the payee’s receipt, a certificate of payment,
prepared in manuscript, signed by the Disbursing Officer and countersigned, if necessary, by his Superior Officer,
together with a memorandum explaining the circumstances, should always be placed on record and submitted to
the Accounts Officer, where necessary. Full particulars of the claims should invariably be set forth, and where this
necessitates the use of a regular bill form, the certificate itself may be recorded thereon.
7.4.6 Every voucher must bear a pay order signed (and not just initialled) and dated by the responsible Divisional
Officer. This order should specify the amount payable both in words and figures. All pay orders must be signed by
hand and in ink.
NOTE: Cashiers and others authorised to make disbursements on passed bills, vide paragraph 7.4.3 should make
no payment without a proper pay order of the Disbursing Officer recorded clearly on the bill or other voucher.
7.4.7 Every voucher should also bear, or have attached to it, an acknowledgement of the payment, signed by the
person by whom or in whose behalf the claim is put forward. This acknowledgement should be taken at the time of
the payment. When the payee signs in an Indian script, he should be required to note the amount acknowledged in
the script in the international numerals in his own handwriting, unless the State Government has prescribed otherwise
by rule.
NOTE 1: If a Disbursing Officer anticipates any difficulty in obtaining, from the person to whom money is due, a
receipt in the proper form, it is open to him to decline to hand over the cheque or cash, or to make a remittance to
him, as the case may be, until the acknowledgement of the payment, with all necessary particulars, has been given
by him. In all cases of payment by remittance, a note of the date and mode of remittance must be made on the bill
or voucher at the time of remittance. In cases of remittance by postal money order, made at the request of the
payee; the purpose of the remittance should be briefly stated in the acknowledgement portion thereof and the
postal charges deducted from the payment due.
NOTE 2: In the case of article received by value payable post, the value payable cover together with the invoice or
bill showing the details of the items paid for may be accepted as a voucher. The Disbursing Officer should endorse
24
a note on the cover to the effect that the payment was made through the post office; and this will also cover charges
for the money order commission.
NOTE 3: A certified copy (marked duplicate) of a receipted voucher may be retained by the Disbursing Officer,
should this be necessary to complete the record of his office, but the payee should not be required to sign such a
copy or give a duplicate acknowledgment of the payment.
NOTE 4: A specimen format of the voucher is form PMGSY/IA/F-6.
7.5 Remittances to Accredited Bank
7.5.1 The officer-in-charge of a Cash Book should record all the remittances of cash/cheques/drafts to the accredited
bank in the Cash Book and the Register of Remittances into the Bank form PMGSY/IA/F-10E. This is essential for
the preparation of the Bank Remittance Reconciliation Statement form PMGSY/SCH/F-52 REM.
7.5.2 The officer-in-charge of the Cash Book should keep the record of all the cheques issued, not only in the
Cash Book, but also in the PIU-Wise Register of Cheques Issued form PMGSY/IA/F-10D. This is essential for the
preparation of the Bank Authorisation Utilisation and Reconciliation Statement form PMGSY/SCH/F-52.
7.6 I. Cash Book
(a) Upkeep
7.6.1 An account of the cash transactions should be maintained in the Cash Book Form PMGSY/IA/F-3A by
Divisional Officers in the capacity of cheque Drawing and Disbursing Officers. Officers entrusted with imprest or
temporary advance should maintain and render accounts of their disbursements in Imprest Cash Book Form PMGSY/
IA/F-4. The SRRDA should maintain Cash Book in form PMGSY/1A/F-3.
7.6.2 The Cash Book is one of the most important account records of the PMGSY. The detailed instructions given
in the notes of Form PMGSY/IA/F-3A should be observed strictly in practice by all concerned.
(b) Balancing
7.6.3 The Cash Book must be balanced on the date prescribed for closing the cash accounts of the month, but
when the transactions are numerous, a weekly or daily balance is recommended and it is advisable that the cash
be counted whenever a balance is struck, or at convenient internals, as this affords an independent check on the
accuracy of the postings. The results of such intermediate counting should be recorded in the form of a note
(specifying the actual cash) in the body of the Cash Book (Column 10), so as not to interfere with the up-to-date
totals; the actual balance of cash in the chest should invariably be stated in the note both in words and figures.
(c) Rectification of Errors
7.6.4 An entry once made in the Cash Book should in no circumstances be erased; crossed or correction fluid
applied. If a mistake is discovered before ledger posting has been done and before the Cash Book is closed, it
should be corrected by drawing the pen through the incorrect entry and inserting the correct one in red ink between
the lines. The Disbursing Officer should initial every such correction and invariably date his initials. If ledger posting
has been done, or the accounts of the month have been closed no corrections of errors in amount, classification or
name of work, should be made in that book but a transfer entry should be prepared for the necessary correction, a
suitable remark in red ink (quoting reference to the correction, in accounts) being recorded against the original
erroneous entry in Cash Book.
Note: Where the Cash Book is kept on the computer, either offline or online, no correction will be made by deleting
any entry already made, because the Cash Book is balanced with each transaction instantly. Therefore, all corrections
will be made through transfer entry orders only.
(d) Contra Entries
7.6.5 There are certain transactions recorded in the Cash Book, which involve no operation on revenue, expenditure,
or any other prescribed heads of the accounts classification. In these cases, each entry is counter balanced either
at once or after a short interval, by a similar entry of the reverse character. It is not necessary to include transactions,
for audit purpose, in any of the schedules and registers subsidiary to the Monthly Account, but the Divisional
Accountant should see that all transactions are cancelled by each other in due course. An example of this kind of
transaction is: Cash from Bank - A cheque drawn to replenish the cash chest is debited to this head in the Cash
25
Book, and per contra the amount of the cheque is entered at once, as cash received, under the same head, a
cheque drawn in favour of self-being cash (vide paragraph 7.1.2), even though not cashed at once.
(e) Cash Verification
7.6.6 The Disbursing Officer should check all the entries in his Cash Book as soon as possible after the date of
their occurrence, and he should initial the Cash Book, dating his initials after the last entry checked. The Cash Book
should be signed by him at the end of the month and such signature should be understood fixing responsibility for
all entries of the month inclusive of the closing balance.
NOTE: The following is the memorandum of some of the more important parts of the verification by the Drawing &
Disbursing Officers:-
(1) Compare each entry of payment with the gross amount chargeable as shown in the connected voucher,
seeing, at the same time, that it bears (i) a payment order recorded by himself and (ii) the certificate of
disbursement signed by himself or an authorised subordinate, and ticking off each voucher as it is passed;
(2) See, while examining the postings of vouchers on the payment side, that all deductions shown in the vouchers
(other than deductions creditable to the head of accounts to which the payment relates) are posted as receipts
on the receipt side of the Cash Book;
(3) Compare each entry of payment into the Bank with the Bank Challan and satisfy himself that the amounts
have been actually credited into the bank;
(4) Verify the totalling of the Cash Book or have this done by some principal subordinate (other than the writer of
the Cash Book) who should initial (and date) it as correct;
(5) Verify the total of the postings in the “Bank Authorisation” column on the payment side by reference to the
memoranda recorded by himself on reverse of the counterfoils of cheques; and
(6) Where the Cash Book is kept on the computer, the above directions will apply to the monthly print out of the
Cash Book, which should be kept in a separate file.
7.6.7 The actual balance of cash in chest should be counted on the last working day of each month (i.e. immediately
after closing the cash account of the month under paragraph 7.6.3.), but where this is not possible, the cash
balance may be counted on the first working day of the following month before any disbursement is made on that
date. The details of the actual balance should be recorded on the Cash Book and a certificate of the count of cash,
specifying both in words and figures, the actual cash balance (exclusive of imprest and temporary advances), and
of reconciliation of the balance, so counted with the book balance, should be recorded below the closing entries of
the month. The certificate should be signed by the Disbursing Officer who should invariably date his signature.
NOTE: Should it not be possible for the Disbursing Officer, owing to his absence, to make the count on the dates
prescribed in this paragraph, he should do so at the earliest opportunity recording the reason for the delay on the
Cash Balance Report.
7.6.8 Whenever, on the contents of the cash chest being counted, the balance as per Cash Book is found to be
incorrect, it must unless the error can be detected and set right at once under paragraph 7.6.4. be made to agree
with the actual count balance by making the necessary receipt or payment entry. “To cash found surplus in chest”
under “Deposits Repayable” or “By cash found deficient in chest” under “Miscellaneous Advances”, as the
case may be. The administrative action to be taken on the occurrence of a deficiency must depend on the nature of
each case.
II. Imprest
7.6.9 An imprest is an advance of a fixed sum of money given to an individual to enable him to make certain
classes of disbursements which may be entrusted to his charge by the Divisional Officer in accordance with such
rules, and subject to such restrictions, as may be laid down by the administrative department of the State Government.
The amount of an imprest should be kept as low as possible and should in no case exceed one thousand rupees
without the special sanction of the SRRDA.
7.6.10 The account of imprest cash should be kept in duplicate by the imprest holder in Form PMGSY/IA/F-4.
“Imprest Cash Account, in accordance with the directions given in that form. The counterfoil should be retained by
the imprest holder and the original, supported by the necessary vouchers, should be forwarded to the officer from
26
whom the imprest is held, whenever the imprest holder finds it necessary to have the account recouped, or when it
is proposed to increase or decrease the amount of the imprest or to close the account altogether. The account
must, in any case, be rendered to the officer from whom the imprest is held in time to enable him to incorporate the
account in his Cash Book before it is closed for the month on the date fixed for the purpose.
7.6.11 The Recouping Officer should examine the imprest cash account and the supporting vouchers, initial and
date the vouchers in token of approval and by a formal pay order (vide paragraph 7.4.6) recorded on the account to
authorise the recoupment, enhancement, reduction or closing of the imprest, as the case may be. The account
should then be abstracted and incorporated in the Cash Book in the manner prescribed.
NOTE: If any item in an imprest account appears to the Recouping Officer to be open to objection, the imprest
should nevertheless be recouped in full, and the items under objection may be entered in his Cash Book as “Item
awaiting adjustment in the Imprest Account....” under “Miscellaneous Advances” to be watched under that head
until either the objection is removed or the amount is made good by the imprest holder.
7.6.12 The imprest-holder is responsible for the safe custody of imprest money and he must at all times be ready to
produce the total amount of the imprest in vouchers or in cash.
7.7 Cheque Books and Receipt Books
7.7.1 Cheque books required by Divisional Officer declared as cheque drawing officers authorised to draw on
accredited bank are obtained by them from local branch of the accredited Bank. The Divisional Officer should keep
a record of their receipt and also of Cash Memo Books received from the State Government authorities under the
arrangements made by the Executing Agency. (vide chapter 15 Miscellaneous).
7.7.2 Cheque (or Receipt) Books should on receipt be carefully examined by the Divisional Officer concerned who
should count the number of forms contained in each and record a certificate of count on the fly-leaf.
7.7.3 Cheque Books must be kept under lock and key in the personal custody of the Divisional Officer concerned.
Receipt Books should be similarly kept by the Officer authorised to sign the receipt.
7.7.4 A record of cheque books and receipt books shall be kept in separate registers in form PMGSY/SR/F-32.
7.8 Custody of Cash
7.8.1 PMGSY money in the custody of the PIU/SRRDA should be kept in strong treasure chest secured by two
locks of different patterns. All the keys of the same lock must, except where the procedure prescribed in the Note
below this paragraph is adopted be kept in the same person’s custody, and, as a general rule, the keys of one lock
should be kept apart from the keys of the other lock and in a different person’s custody when practicable. The chest
should never be opened unless both the custodians of the keys are present. When there is a guard, the daffadar or
other petty officer of the guard should usually be the custodian of one set of keys and he must always be present
when the chest is opened and until it is again locked. Whenever cashier is attached to a division the keys of one of
the locks of the treasure chest will necessarily remain in his possession.
NOTE: The duplicate keys of Divisional chest should be placed in separate sealed covers and lodged with different
officers of higher rank or with the relevant branch of the accredited bank. A duplicate key register should be maintained
and once a year, in the month of April, the keys should be sent for, examined and returned under fresh seal, note
being made in the register that they have been found correct.
7.8.2 Cashiers may be appointed whenever in the opinion of the Administrative Department of the State Government
the cash transaction of a Division are sufficiently extensive to require it.
7.8.3 One cashier may make the cash payments of two or more Divisions wherever such an arrangement is found
to be practicable.
7.8.4 The Divisional Officer should count the cash in the hands of cashier at least once a month. The result of
such counting should be recorded in the form of a note in the Cash Book showing the date of examination and the
amount (in words) found.
7.9 Stores
7.9 General instructions issued by the State Government in the General Financial Rules for the safe custody
and record of assets called dead stock in the Government, and the articles of stationery etc. called consumables
should be observed in the manner prescribed. SRRDA may issue special instructions in this regard.
27
CHAPTER 8
TRANSFER ENTRIES
8.1 GENERAL
8.1.1 Transfer entries, that is, entries intended to transfer an item of receipt or charge from one head of receipt or
expenditure to another head become necessary: -
(a) In order to correct an error of classification in the original accounts;
(b) In order to adjust, by debit or credit to the proper-head of account, an item outstanding in a deposit account or
another account;
(c) In order to bring to account certain classes of transactions which do not pass through the cash account e.g.
(i) for credit to “Unpaid Bills” on account of goods (stationery, etc.) received during the financial year but
payment had not been made by the end of the financial year. This entry takes note of the liability on this
account.
(ii) for credit to revenue receipt heads of account of revenue not recovered in cash including lapsed deposits;
(iii) for original debits or credits to relevant heads based on transactions not appearing in cash accounts.
NOTE: A list of adjustments which have to be made periodically should be maintained in order to ensure that they
are regularly made.
8.1.2 An error which affects a deposit head or amounts receivable from and payable to other parties must be
corrected by transfers, however old and small it may be.
8.1.3 There will be no minus entries for the correction of errors or transfers. The corrections will be made by debit
or credit to the correct head of account by credit or debit to the head of account in which the amount was originally
posted
8.1.4 When a correction is permissible it should be made by a formal transfer entry order.
8.1.5 For every transfer entry there must be an authority in Transfer Entry Order in form PMGSY/IA/F-17 which
sets forth all the necessary particulars.
NOTE 1: A Transfer Entry Order must be signed by Divisional Accountant and the Divisional Officer.
NOTE 2: A single transfer entry order may cover a number of adjustments and corrections, provided that all the
necessary particulars are set forth in respect of each. However, on one side of every transfer entry, there should be
only one major head but there may be a debit or credit to various other heads or vice versa. In a transfer entry all
particulars explaining both the nature of the adjustment and the grounds for the correction must be clearly stated.
8.1.6 A Transfer Entry Order may be initiated by the Sub-divisional Officer, and should be so initiated by him in all
cases falling with - in clauses (a), (b), and (c) of paragraph 8.1.1 which comes under his cognizance.
8.1.7 The Divisional Officer should see that no transfer entry is made in the accounts unless admissible under the
rules, that a transfer entry is made as soon as it becomes necessary, and that Transfer Entry Order in respect of
transactions falling under clauses (a), (b), and (c) of paragraph 8.1.1, proposed by Sub-Divisional Officers, are
countersigned by himself in token of acceptance.
NOTE: Transfer entries should receive the special attention of Divisional Officer so that habitual errors/
misclassifications in the accounts of subordinate officers may not remain unnoticed.
28
8.1.8 All Transfer Entry Orders should set forth such explanation of the correction or adjustment proposed to be
made as would establish clearly the correctness and necessity of the entry.
8.1.9 As and when approved, each transfer entry should be entered in the Transfer Entry Book, form PMGSY/IA/
F-7, each entry initialed by the Divisional Accountant. The effect thereof should be reflected in the debit and credit
ledgers.
8.1.10 All the entries made in the Transfer Entry Book should be posted to the relevant account head in the Debit
Ledgers or the Credit Ledgers, with folio numbers entered against each entry in the Transfer Entry Book and the
Ledgers to enable tracing the entries.
29
CHAPTER 9
ADMINISTRATIVE EXPENSES ACCOUNTS
9.1 GENERAL
9.1.1 Administrative Expenses Fund will not be used for any expenditure related to the construction of roads,
upgradations, plantation, sign boards, or other heads covered uner the PMGSY Programme Fund, or the Maintenance
Fund.
9.1.2 As a general rule, salaries of staff, wages of work-charged staff or daily workers will not be paid from the
Administrative Expenses Fund. However, the State Government may provide Administrative Expesnes Fund for
this purpose for expenses of the SRRDA.
9.1.3 Office building will not be purchased or constructed from the Administrative Expenses Fund unless the State
Government provides, in advance, the full amount for this purpose.
9.1.4 Stationery or other goods or material purchased for one PIU will not be transferred to another division, PIU
or non-PIU.
9.2 ACCOUNT PROCEDURE FOR EXPENSES

9.2.1 The expenditure from the Administrative Expenses fund is primarily of two kind:
i) Consumption expenditure does not create any tangible asset. It relates to expenses on travel, staff salaries of
SRRDA, office rent of SRRDA, operation of the OMMS computers and their maintenance, internet charges,
data entry costs, payments to independent quality monitors. This expenditure is taken to the Income and
Expenditure Account at the end of the year. The total of this expenditure is deducted from the grants received
from the Central or State Governments.
ii) Expenditure on assets continues to appear in the Balance Sheet until the assets are written off.
9.2.2 The consumption expenditure after being recorded in the Cash Book, shall be posted to the relevant heads
of accounts in the General Ledger of Debit Balances, form PMGSY/IA/F-8. At the end of the year. The amount will
be transferred, through a transfer entry order, to the Income and Expenditure Account, to close the balance to a nil
amount. The net effect of the transactions in the Income and Expenditure Account will be transferred to the Central
(or State) Administrative Expenses Fund, (in accordance with paragraph 12.2 of the PMGSY guidelines), which will
then appear in the Balance Sheet.
Accounts Procedure for Assets
9.2.3 The Central Administrative Expenses Fund or the State Administrative Expenses Fund may also meet the
expenditure on purchase of assets, when allowed by the MoRD or the State Government. For example, the MoRD
allows the purchase of laboratory equipment from its administrative expenses fund. This expenditure will be booked
to assets account and not carried to the Income and Expenditure Account. Assets will be shown in the Balance
Sheet, until written off.
Income
9.2.4 The sources of income of the Administrative Expenses Fund are:
a) Grants from MoRD
b) Grants from the State Government
30
c) Interest income from the deposits in the bank.

d) Miscellaneous income.
9.2.5 Interest and Miscellaneous income is to be transferred to the account head 51.09 Surpluses and Reserves.
It will be used only for such purposes as the MoRD allows. The income gets generated in performing the functions
of PMGSY and belongs for its use.
9.3 LEDGER OF DEBIT BALANCES

All the transactions appearing on the credit side of the Cash Book, or in the Debit column of the Transfer Entry Book
will be posted in the debit column of the of the relevant head of account in the General Ledger (Debit Balances)
Form PMGSY/IA/F-8. The examples of these transactions are administrative expenses, travel expenses,
Miscellaneous Advances, Imprest Account etc.
9.4 LEDGER OF CREDIT BALANCES

All the transactions appearing on the debit side of the Cash Book, or in the credit column of the Transfer Entry Book
will be posted in the credit column of the of the relevant head of account in the General Ledger (Credit Balances)
Form PMGSY/IA/F-9. The examples of these transactions are Central Administrative Fund Account, State
Administrative Fund Account, Deposits Repayable, Miscellaneous Receipts, Unpaid Bills, Assets etc.
9.5 SUSPENSE ACCOUNTS

In the PMGSY accounting system, there is no suspense head for the administrative expenses account.
9.6 LIABILITIES AWAITING INCORPORATION

At the end of the financial year, all the liabilities are incorporated in the accounts in the following cases:
(a) Unpaid balances or partly paid balances of all expenses outstanding as on the last date of the financial year.
These mostly will relate to value of goods or services received. For this purpose, a transfer entry order will be
passed debiting the relevant expenditure head of account and crediting the account head Unpaid Bills. When
the bill are paid in the next financial year, the expenditure will be debited to the head Unpaid bills. Details of
unpaid bills or liabilities will be kept in the Register for Unpaid Bills, form PMGSY/SS/F-45.
9.7 EXPENDITURE ON INAUGURATION CEREMONIES

The expenditure incurred with the sanction of competent authority on ceremonies connected with the inauguration
of important public works should be debited to the work.It shall not be debited to Administrative Expenses Fund.
9.8 DEPRECIATION
Depreciation will not be provided for the assets purchased. Notes to the accounts will clearly state it. When the life
of an asset is over, and it is declared un-serviceable by the competent authority by following the rules of the State
Government, the following transfer entry order will be passed after realising its salvage value which will taken to
Miscellaneous income:
Debit: Central/State Administrative Expenses Fund
Credit: Asset Account
31
CHAPTER 10
MISCELLANEOUS ADVANCES
10.1 INTRODUCTORY
10.1.1 Miscellaneous Advance is of temporary character. All the transactions recorded under this head ultimately
removed either by recovery in cash or by adjustment. The transactions, therefore, consist of both debits and credits.
10.1.2 Transactions recorded under the head “Miscellaneous Advances” are divided into two classes:-
(1) Recoveries against suppliers.
(2) Recoveries against staff.
NOTE: No charges should be debited to this head on the ground of absence or insufficiency of sanction.
10.1.3 The heading recoveries from the suppliers covers cases where excess payments have been made to them
and its recovery may be delayed.
10.1.4 The head “Recovery from staff” is meant for all debits which are recoverable from staff. The following are
some examples:
(i) Cash found short.
(ii) Excess payment made due to negligence of staff.
(iii) Shortages in goods received.
(iv) Losses, retrenchment, error, etc.
(v) Other items.
10.1.5 Items under the head “Miscellaneous Advances” account are to be cleared either by actual recovery, or by
transfer, under proper sanction or authority to some other head of account. Items or balances which may become
irrecoverable should not be so transferred until ordered to be written off by the competent authority.
Account of Miscellaneous Advances
10.1.6 The detailed accounts of Miscellaneous Advances should be kept in Form PMGSY/SR/F-23, Register of
Miscellaneous Advances. For each of categories, a separate set of folios should be reserved, and all the items
under each class should be detailed, so that their clearance may be watched individually. An abstract should be
prepared to show the totals of all the classes.
10.2 SCHEDULES
Outstanding balance under the head miscellaneous advances shall be shown in form PMGSY/SCH/F 53-E-ADM
and attached with the Monthly Balance Sheet.
32
CHAPTER 11
DEPOSITS REPAYABLE
11.1 INTRODUCTORY
Deposit transactions of the Administrative Expenses Fund are kept only in one account Deposit Repayable in the
General Ledger of Debit Balances.
11.2 SECURITY DEPOSITS

11.2.1 Earnest money deposit is received from the suppliers if bids are invited along with earnest money in cash.
Earnest money received in the form of bank draft shall not be en-cashed but treated as securities as this is refunded
to the bidders as soon as the contract is awarded. It will be kept in safe custody and entered in the register of
earnest money deposits opened for this purpose.
Register of Repayable Deposits and Schedule of Deposits
11.2.2 Details of deposits are kept in the Register of Deposits Repayable, form PMGSY/SR/F-22. From the register,
an annual extract known as the Schedule of Deposits, should be prepared and attached to the annual Balance
Sheet.
11.3 LAPSED DEPOSITS

All deposits outstanding for more than three years shall lapse. The amount should be transferred by a transfer entry
order to Miscellaneous Receipts. Any refund of lapsed deposit will be made in accordance with the State Government’s
orders. The Application-cum-Bill for Refund of Lapsed Deposit will be submitted in form PMGSY/SS/F-51.
33
CHAPTER 12
ACCOUNTS OF DIVISIONAL OFFICERS OF PIUS
12.1 Introductory
12.1.1 The cash accounts of the divisional office for a month are closed on the last working day of the
calendar month.
12.1.2 The Transfer Entry Book for a month should be closed as soon as possible after the expiry of the month, but
before this is done, all necessary transfer entries should be made.
NOTE: PIUs do not levy on works any centage charges. Therefore, no transfer entry is prepared for them.
12.1.3 The cash accounts of the entire division, as also all transfer entry transactions, should be scrutinised by the
Divisional Accountant before they are incorporated in concerned registers, schedules and the monthly accounts.
12.2 SCRUTINY OF ACCOUNTS

12.2.1 The Divisional Accountant should examine the accounts to see:
(i) that all the sums receivable are duly realised, and on realisation remitted to bank.
(ii) that all the bills are prepared in accordance with the rules applicable to each case and are covered by sanction
and approval. It should be seen, in particular, that on the basis of rates sanctioned by competent authorities,
and of facts, (as to quantities of supplies made, etc., or services rendered) certified by authorised officers, the
claims presented for payment are valid and in order.
NOTE: It is not necessary that the Divisional Accountant should check personally the arithmetical accuracy of all
bills and accounts, but he is responsible that cent per cent check is exercised efficiently under his supervision.
12.2.2 The Divisional Accountant should exercise a similar check from day to day in regard to the transactions
recorded direct in the Cash Book of the divisional office. The Divisional Accountant should affix his dated initials
after the last entry of the day’s transaction in the divisional Cash Book, in token of check in the manual system of
accounts keeping.
12.2.3 Every payment should be recorded, and a receipt for the same so obtained to ensure that a second claim
against the Division on the same account is impossible, and if it represents a refund of a sum previously received
by the PIU, it should also be seen that the amount paid is correctly refundable to the payee.
12.2.4 The Divisional Accountant is responsible that every order or sanction affecting expenditure to be accounted
for in the monthly accounts is noted at once in a suitable register (or other account); preferably one wherein the
expenditure incurred against it can be watched readily. General sanctions to administrative expenditure should be
noted in a special register opened for this purpose.
12.2.5 It is one of the functions of the Divisional Accountant to see that expenditure which is within the competence
of the Divisional Officer to sanction or regularise, is not incurred, as a matter of course, under the orders of Subordinate
Officers, without his knowledge. All such items of expenditure should at once be brought to the notice of the
Divisional Officer and his orders obtained and placed on record.
12.2.6 The expenditure should be checked with the sanctioned amount to ensure that the charges incurred are
within the sanctioned amount.
12.2.7 When a recovery has been ordered to be made from a supplier or other person, which cannot be watched
through any account specially prescribed for the purpose, the order should be noted at once in the Register of
34
Miscellaneous Recoveries in Form PMGSY/SR/F-32A opened specially for the purpose, so that the amounts
recovered from time to time (with particulars of the accounts concerned) may be recorded against it, and prompt
compliance with the order watched.
12.2.8 After check, every voucher should be enfaced with the word “checked” over the dated initials of the Divisional
Accountant, as well as of any clerk who may have applied a preliminary check. Vouchers should be “Cancelled” by
means of a perforating or endorsing stamp and kept carefully, to be made available for audit, whenever demanded
by the audit.
NOTE 1: Stamps affixed to vouchers should be so cancelled that they cannot be used again, and if with this object
they are punched through, care should be taken that the acknowledgement of the payee is not destroyed thereby.
12.2.9 The result of the examination of accounts received from junior/sub engineers, should be intimated to them in
all cases in which it is necessary to obtain further information, certificates etc. or to direct them to correct the
relevant records of their offices or avoid the recurrence of any irregularity. The procedure to be observed may be
prescribed by the Divisional Officer. The records connected with the results of the examination should be called for
from the officer not below the rank of the Assistant Engineer and made available to Inspecting Officers/ Audit
Officers at the time of audit for review.
12.3 Bank Authorisation Statement by PIU
12.3.1 The PIU will account for in its Cash Book the remittances made into the accredited Bank as well as cheques
drawn on it. At the end of the month, the accredited bank branch will send it a statement of remittances realised and
payments made against cheques issued by the PIU. The Bank’s statement may not inform the PIU the balance of
bank authorization; it may only list the cheques paid and remittances received.
12.3.2 On receipt of the statement from the bank, the Divisional Officer will effect a reconciliation in Bank Authorisation
Utilisation and Reconciliation Statement form PMGSY/SCH/F-52-ADM indicating the differences between the cheques
issued by the Division on the one hand and the cheques encashed and accounted for by the bank. He should also
record on the form the details of cheques issued but not encashed as well as the earlier outstanding cheques now
accounted for in the bank in its latest statement. The monthly accounts of the division will be supported by this
statement.
12.3.3 Differences which do not represent amounts of un-cashed cheques should be settled expeditiously in
consultation with the bank.
12.3.4 The PIU will also prepare a statement of remittances into the Bank account of SRRDA, and its reconciliation
with the Bank’s statement in form PMGSY/SCH/F-52 (REM)-ADM. It will be attached to the Monthly accounts sent
to SRRDA.
12.4 COMPILATION OF MONTHLY ACCOUNTS

(a) Introductory
12.4.1 Before the compilation of the monthly accounts and the accompanying schedules, General Ledger (Debits
Balances) and General Ledger (Credit Balances), (forms PMGSY / IA / F-8 and F-9 respectively), should be written
up from the original Cash Book, and the Transfer Entry Book in accordance with the instructions printed on the
standard form and of this manual. The General Ledgers will consolidate all the transactions of the division and will
thereby facilitate the location of errors and omissions made in the compilation of the Monthly Account and the
Schedules and also serve as an independent check over the accounts so compiled.
12.4.2 Monthly Account of Receipts and Payments:-
(a) This shows the Receipts and Payments during a month.
(b) Income and Expenditure Account: This shows the Income and Expenditure from the month of April of the
financial year to the end of the month for which the monthly account is prepared.
(c) Balance Sheet: Balance Sheet always relates to the liabilities and assets on a particular date. The monthly
Balance Sheet shows the PIU’s assets and liabilities as on the last date of the month. It summarises the net
worth of the Administrative Expenses Fund of the PIU.
35
(b) Registers and Schedules

12.4.3 All cash and transfer entry transactions of the month should be posted into one of the schedule and/or
registers named below, to which the transactions relates :
Serial Register Schedule

No.
I Posted from the relevant accounts in
the General Ledger of Debit Balances
1. Register of Miscellaneous Advance Schedule for Current Assets (Form PMGSY/SCH/
(Form PMGSY/SR/F-23) F-53E-ADM) (These schedules will be prepared from the
Register of Miscellaneous Advances)
2 Register of Durable Assets Schedule of Durable Assets(Form PMGSY/SCH/
(PMGSY/SS/F-46) F-53F-ADM)
3 Register of S.T.D./Trunk Call Charges
Register of Traveling ExpensesRegister
of Consumable Stores (Forms as per State
Government Orders)
II Posted from the relevant accounts in the
General Ledger of Credit Balances
1 Schedule of Administrative Expenses Fund (Central and
State received by PIU (Form PMGSY/SCH/F-52A-ADM)
2 Schedule of Surplus Funds/Misc. Income
(Form PMGSY/SCH/F-52B-ADM)
3 Register of Deposits Repayable Schedule for Deposits Repayable
(Form PMGSY/SR/F-22) (Form PMGSY/SCH/F-52C ADM)
4 Register of Un-paid Bills Schedule of Current Liabilities Form
(form PMGSY/SS/F-45) (PMGSY/SCH/F-52D ADM)
Monthly Account of Receipts and Payments

12.4.4 The Monthly Account of Receipts and Payments should be prepared in the Form PMGSY/F-1A-ADM for
presentation to the Divisional Officer and submission to the Accounts Officer. This account is an abstract of the
entire receipts and disbursements of the division and also the receipts and disbursements of the month worked out
from the Ledger of Debit Balances and the Ledger of the Credit Balances.
Monthly Income and Expenditure Account
12.4.5 Income and Expenditure Account Form PMGSY/F-1(I&E-3) shows Income and Expenditure from April of the
financial year to the end of the month for which the monthly account pertains. It has three parts:
Part I for expenditure from the Central Administrative Expenses Fund;
Part II for State Administrative Expenses Fund; and
Part III for Income and the Expenditure from the Surplus Fund.
The account is prepared for each month except the month of March which gets covered in the Annual Account of
Income and Expenditure.
Monthly Balance Sheet
12.4.6 The heads of Receipts and Payments appearing in the monthly account and not taken to the monthly Income
and Expenditure account appear in the Monthly Balance Sheet form PMGSY/F-2B-ADM. The Balance Sheet is
supported by the various schedules prescribed. It is prepared for each month except the month of March which
gets covered in the Annual Balance Sheet.
36
12.4.7 There are certain transactions recorded in the Cash Book, which involve no operation on income, expenditure,
or any other prescribed heads of the accounts classification, as every such entry is counter balanced either at once
or after an interval, by a similar entry of the reverse character. It is not necessary to include transactions, for audit
purpose, in any of the schedules and registers subsidiary to the Monthly Account, but the Divisional Accountant
should see that all transactions are cancelled by each other in due course. An example of this kind of transaction is:
Cash from Bank - A cheque drawn to replenish the cash chest is debited to this head in the Cash Book, and per
contra entry of the amount of the cheque is entered at once, as cash received, under the same head, a cheque
drawn in favour of self-being cash (vide paragraph 7.1.1), even though not cashed at once.
12.4.8 Save as provided in paragraph 12.4.7, all transactions of the division, as recorded in the initial accounts of
cash and the Transfer Entry Book, and posted in the ledgers are recorded in the Register of Cheques Issued,
Register of Remittances into the bank, Register of Miscellaneous Advances etc. barring a few transaction like
Miscellaneous Receipts for which there is no separate register for the PIU. Transactions recorded in the Cash Book
and the Transfer Entry Book are posted direct from those sources, no items being omitted.
(e) Submission to Account Officer
12.4.9 The Monthly Account and the Balance Sheet is due to reach the Accounts Officer by the 5th of the next
month. The Annual Accounts should reach the Accounts Officer by the 10th April.
The Balance Sheet should be supported by the following schedules:
1 Schedule L1 Administrative Expenses Funds PMGSY/SCH/F-52A-ADM
2 Schedule L 2– Surplus Funds and Miscellaneous Income PMGSY/SCH/F-52B-ADM
3 Schedule L3 Deposits Re-Payable PMGSY/SCH/F-52C-ADM
4 Schedule L 4 – Current Liabilities PMGSY/SCH/F-52D-ADM
5 Schedule A 1 Current Assets PMGSY/SCH/F-53E-ADM
6 Schedule A 2 Durable Assets PMGSY/SCH/F-53F-ADM
7 Bank Authorisation Utilisation and Reconciliation Statement PMGSY/SCH/F-52
8 Bank Remittances Reconciliation Statement PMGSY/SCH/F-52 (REM)-ADM
(f) Authenticating the Accounts
12.4.10 The Divisional Accountant is required to sign not only the Monthly Account, the Income and Expenditure
Account and the Balance Sheet but also all the schedules etc., accompanying them. It is not necessary that the
Divisional Officer should sign all the schedules; he must, however, sign the Monthly Account, Income and Expenditure
Account and the Balance Sheet and the List of Schedules Annexed with the Balance Sheet of the PIU, form
PMGSY/SCH/F-56, unless he is absent from headquarters, in which case he should send to the Accounts Officer,
as soon as he can examine his books and papers on return, a report in PMGSY/GEN/F-60 (with a duplicate copy of
the Monthly Account, and the Balance Sheet signed by himself), without which the Accounts Officer will not pass
the Monthly Account finally.
NOTE: It is desirable that the Divisional Officer should make arrangements for the review by himself of all vouchers
before they are submitted to the Accounts Officer, and that unless the circumstances are exceptional, he should
sign the accounts himself.
12.5 ANNUAL ACCOUNTS

12.5.1 The financial year ends on the 31st March. Transactions taking place after that date cannot be treated as
pertaining to the previous year. However, unadjusted outstandings of the year should be cleared within the accounts
of the year, and the errors in accounts coming to notice after 31st March should be set right, if possible, without
affecting the accounts and estimates of the following year. Whilst, therefore, the cash accounts positively close on
the 31st March, the Transfer Entry Book remains open for rectification of errors and other adjustments.
37
NOTE: If any adjustments in accounts have been purposely deferred till the close of the accounts of the year, it is
permissible to effect them after 31st March in the same way as adjustments in rectification of errors notified after
that date.
12.5.2 The Annual accounts will be prepared at the end of the financial in the following order:
(a) After the Monthly Account of Receipts and Payments for March has been prepared, prepare Annual Account
of Receipts and Payments in Form PMGSY/F-1B (Annual) ADM.
(b) The PIU shall pass two transfer entry orders as follows:
(1) Transferring to the Income and Expenditure Account, the balance in Misc. Receipts. The entry will be:
Debit: Misc. Receipt Account.
Credit: Income and Expenditure Account.
(2) Transferring to the Income and Expenditure Account the balance in all the minor heads of consumable
expenditure. The entry will be:
Debit: Income and Expenditure Account.
Credit: The minor head concerned.
(c) Post the above two Transfer Entry Orders into the Transfer Entry Book, and the relevant ledgers. It will result
in Nil balance in the affected ledger accounts.
(d) Prepare the Income and Expenditure Account in form PMGSY/F-1(I&E-3).
(e) The total of expenditure in Part I of the Income and Expenditure Account will be debited to the head of account
51.03 to reduce the balance available for use. Similarly, the total of expenditure in Part II will be debited to the
head of account51.06.
(f) The net effect of the debits and credits in Part III of the Income and Expenditure Account will be credited to the
minor head 51.09 if surplus, and debited if deficit.
(g) Prepare the Annual Balance Sheet in Form PMGSY-F-2B ADM.
Note: The entry of the closing cash balance should be supported by (1) the original Cash Balance Reports (Form
PMGSY/SCH/F-57), and (2) a certificate of the Divisional Officer to the effect that he has obtained on or after 31st
March, and retained in his office, an acknowledgement from the officer or subordinate concerned, in respect of
each item of imprest shown in the Cash Balance Reports of the Division for 31st March.
12.6 REVIEW OF UNSETTLED ACCOUNTS

The register and schedule relating to Miscellaneous Advances and Deposit Repayable should be reviewed monthly
so that the steps necessary to effect the expeditious clearance of outstanding balances, whether by actual recovery
or by adjustment in the accounts, may be taken regularly throughout the year. In February or early March, special
steps should be taken with a view to bring about all possible reductions in the number and amounts of outstanding
balances at the close of the year.
38
CHAPTER 13
ACCOUNTS OF STATE RURAL ROADS DEVELOPMENT AGENCY
13.1 INTRODUCTION
SRRDA will follow the double entry system of accounting and maintain separate account books for the PMGSY
Programme Fund, Administrative Expenses Fund and the Maintenance Fund. For the Administrative Expenses
Fund, it will use the chart of accounts codified in Chapter-4. Following books of accounts shall be maintained by the
SRRDA:
(i) Cash book with cash and bank columns on both the sides of the Cash Book. (form PMGSY/IA/F-3).
(ii) Bank Authorisation Transfer Entry Book for bank authorisations issued to PIUs. (form PMGSY/IA/F-7A).
(iii) Transfer Entry Book for other adjustments. (form PMGSY/IA/F-7).
(iv) General Ledger (Dedit Balances). (form PMGSY/IA/F-8).
(v) General Ledger (Credit Balances). (form PMGSY/IA/F-9).
(vi) PIU-wise Administrative Expenses Fund Register (one for the Central and another for the State Administrative
Expenses Fund) showing details of funds transferred to each PIU. (form PMGSY/IA/F-10-ADM and 10A-
ADM).
(vii) PIU-wise Bank Authorisation Register showing the authorizations outstanding against each PIU. (form PMGSY/
IA/F-10B-ADM and 10C-ADM).
(viii) Register of Remittances into the Bank by PIUs and SRRDA. (form PMGSY/IA/F-10E-ADM).
13.2 SINGLE BANK ACCOUNT

13.2.1 SRRDA has only one bank account for its Programme Fund and another bank account for both the Central
Administrative Expenses Fund and the State Administrative Expenses Fund. It opens these two accounts with one
bank. It does not transfer funds to PIUs, instead, it authorizes the PIUs to draw cheques on its funds and keep their
accounts in prescribed forms. Moreover, it sets the bank authorizations limits for withdrawal for each quarter.
13.2.2 The accredited bank automatically invests SRRDA’s surplus funds (funds above a threshold limit) in its fixed
deposits at the interest rate decided in the tripartite agreement. The bank informs the SRRDA the interest credited
to SRRDA’s account and its detailed calculations.
13.2.3 The branches of the SRRDA’s accredited bank provide the following facilities to the PIUs:
(i) To draw self cheque by the PIUs;
(ii) To accept deposit of the moneys received by PIU in bank account of SRRDA maintained at State level;
(iii) To furnish bank statement at the close of each month showing the opening balance of bank authorisation
account, details of PIU’s cheques encashed during the month and the balance of bank authorisation account
on the closing day of the month. (This statement is also furnished to the SRRDA. At some places, the bank
branches only furnish details of cheques paid and deposits received).
13.2.4 Since the PIUs operate on the single bank account of the SRRDA, they need an authority from the SRRDA
to draw on this account. SRRDA will issue, on indents from the PIUs, Bank Authorisations Authority in form PMGSY/
GEN/F-65. It will show such payees-wise details as it deems fit.
13.2.5.SRRDA and each PIU operate bank authorisation account and classify the transaction to the head of account
mentioned in the chart of accounts. In SRRDA, this account is in the Ledger of Credit balances, as this is SRRDA’s
liability to honour the cheques it authorised the PIUs to issue. The PIUs have a bank authorisation column in their
Cash Book, on both sides of the Cash Book. This is the fund available to them for expenditure.
39
13.2.6 SRRDA will also maintain the following registers in addition to the ledger accounts:
i) PIU-wise Administrative Expense Funds Register in form PMGSY/IA/F-10-ADM (one for Central funds and
another for State funds) to record the details of Administrative Funds (Central or State) transferred to or
received back from a PIU.
ii) An abstract of the outstanding Administrative Expenses Fund (both for the Central and State Funds) in only
one form PMGSY/IA/F-10A-ADM. This will be prepared each month.
iii) PIU-wise Bank Authorisations Register form PMGSY/IA/F-10B-ADM to record the release of bank authorisation
to each PIU and its utilization.
iv) An abstract of the outstanding Bank Authorisations at the close of each month in form PMGSY/IA/F-10C-
ADM.
13.2.7 The balances in these PIU-wise Registers must agree with the balances appearing in the monthly accounts
received from the PIU. Any difference should be promptly investigated and set right.
13.3 ACCOUNTING PROCEDURE

(i) SRRDA shall maintain a two column Cash Book having cash and bank columns on its both sides in form
PMGSY/1A/F-3.
(ii) The funds received from MoRD will be posted on the receipt side of the Cash Book in bank column by showing
classification Account Code No.51.01.
(iii) The funds received from the State Government will be posted on the receipt side of the Cash Book in bank
column by showing classification Account Code No.51.04.
Note: Details of the Government orders sanctioning the release of funds will be kept in the form
PMGSY/SR/F-28.
2. The register will have continuous numbers, starting with 1 each financial year.
3. All sanctions will bear the serial number shown in this register, and kept in one folder.
4. The totals will be worked out at the end of each quarter.
(iv) On receipt of requisition of funds from the PIU in the form PMGSY/GEN/F-64A–ADM or PMGSY/GEN/F-64B-
ADM, SRRDA’s empowered officer will issue it a bank authorisation in the format PMGSY/GEN/E-65 with
endorsement to the bank showing the amount, names of payees, etc. Separate authorizations will be issued
for the Central and State Funds.
(v) One signed copy of the bank authorisation will become the voucher for the entry in the “Bank Authorisation
Transfer Entry Book”(BATE Book). The entry number of the Bank Authorisation Transfer Entry Book should
also be indicated in the Bank Authorisation.
(vi) Entries in the Bank Authorisation Transfer Entry Book will be debited to the account head 51.02 Central
Administrative Funds Transferred to the PIU (or 51.05 State Administrative Funds transferred to the PIU); and
credited to the head 51.07 Bank Authorisation.
Note: Similar entry will be for State Administrative Expenses Funds authorized to PIUs.
The detailed account of each PIU will be kept in the PIU Central Funds Transferred/State Funds Transferred and
PIU-Wise Bank Authorisation Register.
(vii) Each PIU will send to SRRDA each month the following account so as to reach it, by the fifth of the next month:
(a) Monthly Account of Receipts and Payments;
(b) Monthly Income and Expenditure Account showing the Income and Expenditure from the start of the financial
year to the end of the month to which the accounts relate;
(c) Monthly Balance Sheet showing the liabilities and assets as on the last date for which the accounts pertain,
with the prescribed schedules, and the reconciliation statements for cheques issued and remittances made.
40
(viii) SRRDA has to incorporate in its books the information about the cheques issued by PIUs and their remittances
into the bank. Therefore, the monthly accounts from PIUs must reach the SRRDA by the 5th of the next month
with the following schedules, among others.
Bank Authorisation Utilisation and Reconciliation Statement PMGSY/SCH/F-52
Bank Remittances Reconciliation Statement PMGSY/SCH/F-52 (REM) -ADM
SRRDA shall pass an order on each of the above schedules accepting them, and make entry on the payment side
of the Cash Book for the cheques issued and on the receipt side for the remittances made for the total amounts. It
will also post the details of cheques in the PIU-Wise Register of Cheques Issued (form PMGSY/IA/F-10D-ADM).
Entries from the Cash Book will be credited to Bank Authorisation Account in the General Ledger of Credit Balances.
Thereafter, PIU-wise totals will be posted in the PIU-Wise Bank Authorisation Register. Similar action will be taken
for remittances by posting their details in the PIU-Wise Register of Remittances, form PMGSY/IA/F-10E-ADM.
(ix) Net credit balance in the PIU-wise Bank Authorisation Register should agree with the amount shown in the
Balance Sheet of the PIU. Any difference should be promptly investigated and set right.
(x) Moneys received by PIUs by cheques/ demand drafts/ pay orders, etc. for the Central or State Administrative
Expenses Fund shall be deposited by the PIU in the branch of accredited bank for crediting the account of
SRRDA. They will furnish the details of these deposits in the Bank Remittances Reconciliation Statement form
PMGSY/SCH/F-52 (REM) -ADM sent to SRRDA with the monthly Balance Sheet. On its receipt SRRDA shall
pass an transfer entry order crediting the account head 51.02 “Central Administrative Expenses Fund transferred
to PIU” and debiting the Bank Account. The transfer entry will then be posted in the Cash Book and the ledger.
(If the deposit relates to the State Fund, a similar entry will be made.)
Net debit balance of Central and State Administrative Expenses funds of the PIU in the accounts of SRRDA
shall be in agreement with the net credit balance in the accounts of PIU. Any difference should be promptly
investigated and set right.
(xi) In order to avoid any differences, which arise because of delays in transit, , there shall be no issue of bank
authorisation during the last five working days of the month.
(xii) Gross amount of interest received from bank shall be taken as receipt in bank column of the Cash Book,
account classification 60.01. The tax deducted at source by bank shall be shown on payment side in the bank
column “Tax Deducted at Source” Account Classification 53.01. Refund for Tax Deducted at Source shall be
claimed from Income Tax Department. In case the SRRDA comes to know of the tax amount later, it will take
to the Cash Book only when the actual amount is received. A separate Transfer Entry Order may be passed
debiting the Head 53.01 and crediting 60.01 for the amount of tax deducted.
(Note: It would be better for the SRRDA to obtain exemption from payment of Income Tax.)
13.4 MONTHLY ACCOUNT, INCOME AND EXPENDITURE ACCOUNT AND BALANCE SHEET
Monthly Account of Receipts and Payments
13.4.1 SRRDA will prepare its Monthly Account of Receipts and Payments in form PMGSY/F-1-ADM at the end of
each month. This account shows not only the Receipts and Payments, but also the cumulative total of the Receipts
and Payments.
(Note: The cumulative balances column of Cash Book also serve the purpose of trial balance.)
Income and Expenditure Account
13.4.2 SRRDA will prepare each month an Income and Expenditure Account, in form PMGSY/F-1 (I&E-2), from the
monthly account of Receipts and Payments.
Balance Sheet
13.4.3 SRRDA will prepare each month a Balance Sheet in form PMGSY/F-2A-ADM showing its liabilities and
assets as on the last date of the month. It will attach to it the following schedules:
41
Serial Particulars Form No.

No.
1 Bank Reconciliation Statement No form. SRRDA will attach to its Balance Sheet and the
State Balance Sheet a Bank Reconciliation Statement
showing the reasons for the difference between its books
and that of the bank.
2 Schedule L-1 Central Administrative
Expenses Fund PMGSY/SCH/F-52A-ADM
3 Schedule L-1 State Administrative PMGSY/SCH/F-52A-ADM
Expenses Fund
4 Schedule L-2 Surpluses and PMGSY/SCH/F-52B-ADM
Misc. Receipts
5 Abstract of PIU Wise Bank PMGSY/SCH/F-10C-ADM
Authorisations Outstanding
6 Schedule L-4 Current Liabilities PMGSY/SCH/F-52D-ADM
7 Schedule A-1 Current Assets PMGSY/SCH/F-53E-ADM
8 Schedule A-2 Durable Assets PMGSY/SCH/F-53F-ADM
13.5 STATE INCOME AND EXPENDITURE ACCOUNT AND THE BALANCE SHEET
STATE INCOME AND EXPENDITURE ACCOUNT
13.5.1 SRRDA is responsible to render not only its own accounts, but also consolidated accounts of all the PIUs
under its control. Its own accounts do not reflect the use of Administrative Expenses Fund as it transfers a good part
of the resources to the PIUs.
13.5.2 For preparing the account for the State, to depict the consolidated picture of its own accounts and the
accounts of all the PIUs, the SRRDA will proceed as follows:
(a) Step 1. The SRRDA will consolidate the Monthly Accounts received from all the PIUs, in the Master Sheet of
Accounts of All the PIUs form PMGSY/F-1AA.
(b) Step 2. The SRRDA will prepare the Master Sheet of Income and Expenditure Account by merging the
consolidated figures of the PIUs with its own figures.
(c) Step 3. From Step 2 above, the SRRDA will prepare the Consolidated Income and Expenditure Account for the
State in form PMGSY/F-1(I&E-1).
(d) Step 4 The SRRDA will prepare the six Schedules for the State mentioned in paragraph 13.4.3 above to show
the separate details for all the PIUs and the State, and the consolidated figure for the State.
(e) Step 5. The SRRDA will prepare the Master Sheet of consolidated Balance Sheet of SRRDA and PIUs in form
PMGSY/F-1AAA-ADM & State Balance Sheet in form PMGSY/F-2-ADM.
13.6 ANNUAL ACCOUNT

13.6.1 SRRDA has to prepare the annual accounts in similar way as the monthly account. The major changes are:
(a) All the expense heads, for example, expenses allowed by the State Government, are transferred to the Income
and Expenditure Account by passing a transfer entry. In this manner, the balance in the expenditure accounts
becomes nil balance and the opening balance in the next year is also nil. However, expenditure on assets, like
furniture, is not taken to Income and Expenditure account. This amount is shown as asset in the Balance
Sheet.
42
(b) SRRDA has to prepare an Annual Account of Receipts and Payments in form PMGSY / F-1A (ANNUAL)-ADM.
13.6.2 The Governing Council of SRRDA will approve the annual accounts. After its approval, a transfer entry order
will be passed to reduce the amount outstanding against the PIUs, and the amounts received by SRRDA from the
Central and State Governments. The amount equal to the expenses debited to the Income and Expenditure Accounts
of each PIU will be taken into account. For example, if the PIU-A has debited Rs. 5 lakhs to Income and Expenditure
account, then the transfer entry order will be:
Debit Central Administrative Expenses Fund received from GOI (51.01) Rs.5 lakh
Credit Central Administrative Expenses Fund Transferred to PIU (51.02) Rs.5 lakh
Similar entry will be passed for the State Fund. Thus, the figures in the books of SRRDA and the PIU will
agree.
43
CHAPTER 14
AUDIT
14.1 STATUTORY AUDIT

14.1.1 The chartered accountant appointed to audit the programme funds will also audit the administrative expenses
funds.
14.1.2 The SRRDA will inform the auditor the form in which it wants the audit report on Administrative Expenses
Fund. Though the auditor is free to comment on the accounts, the SRRDA may lay down a format of the report to
fulfill the requirement of the Ministry of Rural Development and the State Government.
14.1.3 The auditor will not take up any other work of SRRDA to ensure his independence. No auditor will continue
to be SRRDA auditor for a period exceeding three years.
14.2 OBJECTIVE
14.2.1 The objective of the statutory audit of the PMGSY Administrative Expense Fund is obtain the professional
opinion of the auditor on the annual financial accounts of SRRDA, including the PIUs who work for it.
Scope
14.2.2 The audit will be carried out in accordance with the relevant national standards of auditing, and will include
such tests and controls as the auditor considers necessary under the circumstances. In conducting the audit,
special attention should be paid to the following:
(i) That the SRRDA faithfully followed conditions laid down in the PMGSY Guidelines / Operational Manual /
Accounts Manual in spending the funds it received from MoRD for the Administrative Expenses or the State
Government.
(ii) That SRRDA used all the funds in accordance with the relevant financing agreements, with due attention to
economy and efficiency, and only for the purposes for which they were provided.
(iii) That all the expenditure have the necessary supporting documentation; and that it has been incurred in
accordance with the PMGSY Guidelines, Operational Manual and the Accounts Manual.
(iv) That proper and complete records have been kept as prescribed in the Accounts Manual, and the Operational
Manual.
(v) That the PIUs have used the funds for the PMGSY Administrative Expenses Fund and that the auditor, after
visiting the PIUs and conducting audit is satisfied on this count.
(vi) That the accounts have been prepared in accordance with consistently applied relevant principles laid down in
the Administrative Expenses Manual and give a true and fair view of the financial year of receipts, payments,
assets and liabilities.
(vii) That in respect of the activities taken up under aid from the World Bank, Asian Development Bank and others,
the schedules to the Balance Sheet depict the correct figures of expenditure on them.
14.3 AUDIT REPORT

14.3.1 Besides a primary opinion on the Financial Statements, the audit report should include a separate paragraph
commenting on the accuracy and propriety of expenditures shown in the Income and Expenditure Account and the
Balance Sheet on the activities financed by the World Bank or the Asian Development Bank and others, and the
extent to which they can rely on these as a basis for reimbursement.
44
14.3.2 In case a qualified opinion or disclaimer is given by the auditor, the audit report should state in a clear and
informative manner all the reasons for such an opinion.
14.3.3.Audit report to be accompanied by:
Management Letter
In respect of activities funded by the World Bank or the ADB:
Listing of ineligible claims, if any.
Reconciliation of Statement of Expenditure claims with the actual expenditure as reported in the audited
financial statements.
Time Period for Submission
14.3.4 The audited financial statements including the audit report should be sent to the SRRDA within four months
of closing of the financial year.
Management Letter
14.3.5 In addition to the audit reports, the auditor should prepare a “management letter” in which the auditor should:
(a) Give comments and observations, if any, on the accounting records, systems and controls that were examined
during the course of the audit;
(b) Identify specific deficiencies and areas of weakness (if any) in systems and controls and make recommendations
for their improvement;
(c) Report on the degree of compliance with the financial/ internal control procedures as documented in the
financial manual of the project.
(d) Communicate matters that have come to attention during the audit which might have a significant impact of
the implementation on the society; and
(e) Bring to attention any other matter that the auditor considers pertinent.
14.3.6 The Observations in the Management Letter must be accompanied by recommendations from the auditors.
The audit report and the Management Letter should be placed before the Audit Committee for its recommendations
to the Executive Committee of the SRRDA.
Access to Records and Documents
14.3.7 SRRDA and PIUs should provide the auditor access to all legal documents, correspondence, financial manual,
transaction records and any other information associated with the Administrative Expenses Funds as deemed
necessary by the auditor.
14.4 COMPTROLLER AND AUDITOR GENERAL OF INDIA

The Comptroller and Auditor General has a constitutional right to audit the accounts of any organization if it received
grants above Rs.25 lakhs from the Government of India. Therefore, his audit teams will be auditing the transactions
and accounts of the SRRDA and the PIUs at such intervals as he decides. Audit will take into account the total grant
SRRDA receives, namely, the total of Programme Fund grants and the Administrative Expenses Fund grant.
14.5 INTERNAL AUDIT

Selecting Internal Auditors
14.5.1 SRRDA will appoint internal auditors as a management aid to ensure the true and fair record of accounts.
The auditors should have experience of public works audit. SRRDA may identify, with the help of the NRRDA,
competent organizations for this task.
Period of Internal Audit and Fees
14.5.2 The period of internal audit should be one year, running concurrently with the year during which the audit is
done, except for some overlap. The audit is to be carried out in two phases of six months each ending on 30th
September, and 31st March. The appointment letter of auditor should contain details of the date of commencement
of audit, completion of audit work in each phase, the dates by which reports are to be submitted and the phase-wise
45
fees payable. It should specify the level of the supervisory officer and the minimum period he must visit each PIU,
in each phase, and the minimum qualifications of the members of the audit team.
Objectives of Internal Audit
14.5.3 The broad objectives of Internal Audit shall be as under:-
(a) To ensure that the accounting and financial management systems remain reliable and effective in design and
to assess the extent to which they are being followed;
(b) To review the efficacy, adequacy and application of accounting, financial and operating controls and thereby
ensuring the accuracy of the books;
(c) To verify that the system of internal check is effective in design and operation in order to ensure the prevention
of and early detection of defalcations, frauds, misappropriations and misapplications;
(d) To identify areas of significant inefficiencies in existing systems and to suggest necessary remedial measures;
(e) To confirm the existence of financial propriety in all decisions and verify compliance to Government and
statutory requirements;
(f) To review the performance of various functions in the light of performance budgeting;
(g) To associate with Superintending Engineers, Executives of the SRRDA, and Vigilance etc., in their surprise
checks and inspections in one of their visits to the unit whenever asked for;
(h) To ensure that the units have obtained confirmation and prepared statements of reconciliation of balances as
on 30th June, and 31st January, under outstanding advances to contractors, and of creditors.
Note: In this context, internal auditors shall analyse outstanding advances into (1) good and fully recoverable, (2)
requiring adjustment entries to be passed, (3) doubtful of recovery, and (4) bad with supporting documents/
explanations and reasons as for each and every account. The analysis will be of the accounts as per the ledgers
and schedules to the accounts as at beginning of the year whose audit is taken up. This analysis shall be furnished
along with the Phase I audit report for the first six months.
(i) To report compliance of guidelines issued from time to time by the Ministry of Rural Development, Government
of India, National Rural Roads Development Agency, the State Rural Development Department, Executive
Agency and the State Rural Roads Development Agency.
(j) To report compliance of internal audit observations outstanding as at the end of the year.
(k) To report that tax deduction at source are being made in all cases, as applicable under the Income Tax Act,
1961, and other statues at prescribed rates and that TDS deposits are being made within the prescribed time
and also that the unit is complying with all statutory requirements under Income Tax and other laws.
(l) Routine errors of omissions or commissions noticed during the course of internal audit may be got rectified on
the spot.
Extent and Scope of Internal Audit:
14.5.4 The extent and scope of internal audit will be as follows: This is only indicative. The internal auditor is free to
extend any area and to any extent to cover within his review as required or as may be necessary to achieve the
objectives.
(a) Purchases
(i) Above Rs. 1 lakh 100 per cent;
(ii) All others: 20 per cent.
(b) Accounts
(i) 100% vouching of Cash Payment Vouchers, Bank Adjustment Vouchers and Transfer Entry Vouchers.
Cheque payments may be vouched to cover 50% of the transactions in each of the months selected.
(ii) Purchases: A list of the cases audited should be mentioned in the report while in case of “Accounts”
(vouching of cash, bank and transfer entry), the name of the months for which vouching has been reviewed
shall be mentioned in the report.
46
(c) Compliance
While conducting internal audit in a subsequent phase, the auditor will ensure that the compliance report on audit
observations pointed out in reports relating to earlier audits is made and corrective action taken on those points are
furnished in the Audit Report of the subsequent phase. In other words it may be ensured while conducting the audit
Phase – II, that compliance report on audit observations pointed out in earlier report of Phase-I is made and
corrective action taken on those points are furnished in Phase-II audit report.
REPORTS
14.5.5 Auditor should discuss results of audit with the Divisional Officer of the PIU in each phase and important
observations should be brought to his notice for taking timely corrective action. The reports should be prepared
after duly taking into account the facts brought out in the discussion. These should be couched in polite language.
Offensive or strong words, sarcastic language etc. should on no account figure in the report. No suppositions,
assumptions or allegations should be included in the report. Only facts should be mentioned and inevitable conclusions
drawn. There should be no reference to responsibility being fixed for any irregularity; the administrative authorities
have to take action for this.
14.5.6 Internal Audit Reports should be divided into three main portions namely:
PART I. Important Observations, Objections and Reservations
This part should contain all such irregularities which auditors want to bring to the notice of management, specifying
the financial implications. This part should also bring out deviations by site from policies, systems and procedures
prescribed by NRRDA, MORD and SRRDA. The observations should be arranged into self-contained audit
paragraphs with a suitable title.
PART II. COMPLIANCE AND REPORT
This part should contain actions taken for rectification of errors pointed out by previous auditor or by the current
auditors in earlier phase/phases. It should also contain the confirmations by the PIU about implementations of
policies, system etc. to avoid the recurrence of such irregularities in future.
PART III. DETAILED REPORT :
This part shall comprise of auditors’ points on confirmations on matters or areas specified in the guidelines for
audit.
The report should be supplemented, in each Phase, by a statement indicating:
1. Particulars of records along with their volume and value checked as compared to the total volume and value
of transactions.
2. A summary report indicating the important observations for each phase and for each area.
3. A statement indicating the audit personnel deployed, their designation and the period of deployment for each
phase.
The report should also contain reference to areas where no adverse observation have been noted. In respect of
other areas specific suggestion for improvement may also be highlighted for each area.
Submission of Internal Audit Report
14.5.7 The reports are to be submitted in three copies for each phase of audit to the Chief Executive Officer of the
SRRDA, with two CDs of the report. Internal auditor will send two copies to the Divisional Officer.
Replies to the Internal Audit Reports
14.5.8 Divisional Officer should base his replies to the internal audit reports, or audit memos, on his own knowledge,
as far as possible. .It is not enough to pass on the explanations of a subordinate, reports prepared in this manner
may lull suspicion for the time being, but lead to greater irregularity afterwards. He will forward one copy of the audit
report to the Superintending Engineer with his comments for onward transmission to SRRDA.
47
Processing the Internal Audit Report:

14.5.9 The Superintending Engineer will process the internal audit report. He shall pass orders in respect of matters
which he is competent to deal with finally and record his remarks with a note of the action taken on all other points
before returning the documents to the SRRDA.
NOTE: As an exception to the above rule, the Divisional Officer may send his first reply to an Inspection Report
direct to the Audit Officer/Accounts Officer with a copy of the reply to the Superintending Engineer.
14.5.10 Once a transaction has been entered in the Audit Note or otherwise challenged in one or the other documents
the responsibility for having the objection removed will devolve upon the Divisional Officer, and the Audit Officer is
required to report to the higher authorities all important items and any serious delays in the adjustment of individual
objections.
NOTE: An audit objection is usually removed by obtaining the requisite sanction, by making the necessary recovery,
by correcting or completing the relevant account or voucher by furnishing the necessary documents or information,
or by otherwise securing compliance with the provisions of a specified rule. In cases in which a protest is made
against an audit objection as being incorrect, the objection should be held to be in force unless a formal intimation
of its withdrawal is received from the Audit Officer/Accounts Officer.
14.5.11 The Audit Officer will place under objection any transaction coming to his notice which is not covered by
adequate sanction or involves an excess thereon or other deviation. In some cases, the Divisional Officer may
have/ already taken action to regularise the transactions or the excess (if any) over sanction plus any further
excess that may be anticipated, may be within his own powers of sanction without preparing a revised estimate,
and he may have accorded the necessary formal approval to it: Yet, if the necessary intimation of sanction does not
reach the Audit Officer/Accounts Officer when the divisional accounts in which the irregular transaction appear are
being audited/inspected, the Audit Office’/Accounts Officer will raise the objection, as he is not authorised to assume
that the necessary sanction has been accorded. Divisional Officers will, therefore, find it advisable to send to the
Audit Officer/Accounts Officer the earliest intimation of such of their sanctions and orders as are required to be
communicated to him (vide paragraph 5.4.1) and to give it, without waiting for the receipt of the Audit Note/Inspection
Report. The intimation should have the necessary information in regard to transactions for which, within their
knowledge, adequate authority does not exist. A single note or statement, prepared monthly and signed by the
Divisional Officer himself, will ordinarily suffice, in respect of transactions brought to account in the Monthly Account,
but, if it cannot precede or accompany the Monthly Account, it should be sent to the Audit Officer/ Accounts Officer
within a week of the despatch of the account.
NOTE 1: The object of this rule is to obviate the issue of unnecessary audit objections, but a reduction in the
number of objections can be effected only by observing the requirements of the financial and other rules bearing on
the transactions, and by taking timely action to accord or obtain, as the case may be, such sanction or order as may
be required in cases in which a deviation from rules had occurred.
NOTE 2: The Divisional Accountant is responsible (i) for bringing prominently to the notice of the Divisional Officer
at least once a month, the irregular transactions on which action has not already been taken by the latter at the
instance of Sub-Divisional Officers or on his own, and (ii) or giving effect to the provisions of this paragraph in
accordance with the procedure which the Divisional Officers may have desired to be observed in this connection.
14.6 AUDIT COMMITTEE

SRRDA will appoint an Audit Committee consisting of three members of its Executive Body. Head of the Finance
Division will assist the committee; however, he will not be its member. The Audit Committee will consider all the
audit reports, and place its recommendations before the Executive Committee.
48
CHAPTER 15
MISCELLANEOUS
15.1 CHEQUE BOOKS

The following procedure will be followed in regard to indenting, safe custody, issue and accountal of cheque books.
15.1.1 Indent - The supply of cheque books required for making payments by the Divisional Officer will be made by
the Bank, on the advice of the Accounts Officer, on the basis of indents received from the Divisional Officer.
15.1.2 Issue of Cheque Books to Divisional Officer - The Divisional Officers, (who are termed as the Drawing
and Disbursing Officers vested with cheque drawing powers) will requisition their requirement of cheque books/
forms from the Accounts Officer.
15.1.3 Stock Register of Cheque Books - A Stock Register of Cheque Books should be maintained to keep an
account of the receipts, issues and balances of cheque books (form PMGSY / SR / F-32). Each morning the cheque
cashier should take such cheque books from the Officer-in-Charge, as are likely to be used during the course of the
day and should remain responsible for their use and return of the unused cheque forms balance at the close of the
day to the Divisional Officer.
15.1.4 In cases, where the power of drawal of funds by cheque(s) is withdrawn from any cheque-drawing Divisional
Officer, all the unused form in the partly used cheque books with that officer shall be defaced by writing the word
“Cancelled” promptly across such cheque form and its counterfoil (but without the signature of the Drawing Officer)
and returned to the Accounts Officer concerned who should destroy them after keeping a note in the relevant
records. All unused cheque books with such an officer shall however be returned by him to the Accounts Officer
without any cancellation.
15.1.5 Whenever a new cheque book is brought into use, the DDO should intimate the number of the cheque book
and the Serial Number of the Cheque forms contained therein to the Bank as well as the Accounts Officer.
15.1.6 Stock taking at the change of the Officer-in-Charge - Every six month, in April and October, stock taking
of the cheque book should be done by an Officer other than the Officer-in-Charge and a certificate of physical count
recorded by him in the Stock Register. This stock taking should also be done whenever there is a change of the
Officer-in-Charge and the Relieving Officer should initial the entry in respect of each of the cheque book noted in
the form PMGSY / SR / F-32 and sign a certificate in the Stock Register in the following form :-
“Received the current cheque books as indicated by my initials in the register of account of cheque forms and
the unused cheque books from .........to......... as entered in the Stock Register.”
15.1.7 The physical verification can also be entrusted either to the Inspecting Officer of the internal inspection party
conducting the normal inspection of his office or by any Gazetted Officer of his department who visits that office on
any other official work.
15.2 RECEIPT BOOKS

15.2.1 The following procedure will be followed in regard to indenting, safe custody, issue and accountal of the
receipt books.
15.2.2 Receipts in machine numbered form PMGSY/IA/F-5 may be obtained from SRRDA. This standard from will
be used for all the moneys received on PMGSY purposes; unless the SRRDA prescribes otherwise. SRRDA will
keep complete record of the Receipt Books printed, and supplied to PIUs and for its own use.
49
15.2.3 The receipt books must be kept under lock and key in the personal custody officer authorized to sign them
by the Executing Agency for the PIUs and for its own use by the SRRDA.
15.2.4 Before a receipt book is brought into use, the number of forms contained therein shall be counted and the
result recorded in a conspicuous place in the book over the signature of the Officer in charge of the book. Counterfoils
of the used receipt books will be kept in his personal custody.
15.3 TRANSFER OF CHARGE

I. Divisional and Sub-divisional Officers
15.3.1 The Relieving Officer will take into account the expenditure in cash and on stores, as the case may be, from
and for the first day of the month during which the relief took place, and submit the next monthly account in the
same manner as if he has been in-charge during the whole month. But the Relieved Officer remains responsible for
the transactions during his incumbency.
15.3.2 In the case of transfers of divisional or sub-divisional charges, the Cash Book in the case of Divisional Office
or imprest account in respect of Divisional Office and Sub-Divisional Office should be closed on the date of transfer,
and a note recorded in it, over the signatures of both the Relieved and Relieving Officers showing the cash or
imprest balances, the number of unused cheques made over and received in transfer by them as the case may be.
A copy of this note, together with a receipt in the form appended below for the stores under the immediate charge
of the Relieved Officer, should be forwarded on the same day to the Superintending Engineer in the case of
divisional or to the Divisional Officer in the case of sub-divisional charges.
The receipts of cash and stores balances should be prepared by the Relieved Officer, but the Relieving Officer
should note any inaccuracies therein so that the Superintending Engineer or the Divisional Officer, as the case may
be, may pass such orders in respect of any deficient articles as may be necessary. A copy of the receipts may be
given to the Relieved Officer, if desired by him.
FORM A (For Divisional Charges)
Received in transfer from A.B., formerly Divisional Officer ........ Division, the stores in his personal charges as
detailed in the annexed list.
The Priced Stores Ledger is on record and have been posted up-to-date/to end of..............
Station : C.D.,
Date : Divisional Officer.......................Division.
FORM B (For Sub-Divisional charges)

Received in transfer from A.B., formerly officer-in-charge.........sub-division the stock which has been in his
personal custody as detailed in the Bin Cards, which have been posted up-to-date.
Station : C.D., Date : (Relieving) Sub-Divisional Officer.
Divisional Accountant
15.3.3 When a Divisional Accountant is about to be relieved of his duties in a divisional office, either permanently or
temporarily, he should prepare a memorandum reviewing the PMGSY accounts of the Division. The state of stock
and purchase accounts and of outstandings in the accounts of works should be reviewed in particular. All important
liabilities as also recoveries to be made from the staff or from contractors and others which should receive special
attention should be mentioned.
Any arrears or defects in the working of the divisional office or subordinate offices rendering accounts to it should
be specified with a statement of the remedies applied or contemplated. Other points requiring the special attention
of the relieving Accountant, whether in regard to the initial or compiled accounts or to Inspection Notes received
from the Accounts Officer should also be sent forth in detail.
50
The memorandum should be in a tabular form with columns for (1) remarks by the relieving Accountant (2) remarks
by the Divisional Officer and (3) Orders of the Accounts Officer. The relieving Accountant should examine it when
taking over charge and promptly forward it, with his remarks, to the Accounts Officer through the Divisional Officer,
who will record such observations, as he may consider necessary.
15.4 Reconstitution of Executive Charges
When in consequence of the reconstitution of executive charges or of any other arrangements, the accounts of two
or more Divisional Officers are to be amalgamated, or those of any office are either to be broken up into parts or
closed, the Divisional Officers concerned should apply in time to the Accounts Officer for instructions to be observed
in regard to PMGSY accounts in giving effect to the arrangements. On all occasions, the necessary transfer between
offices of unsettled accounts, of liabilities not yet brought to account, of quantity account of road metal, and of
relevant account and records (including unused forms of cheque books, receipt books and cash memo books)
should receive the special attention of all concerned.
(i) Work in progress.
(ii) Appropriation and sanctions not yet completely operated upon.
(iii) Stock and other Purchase accounts.
(iv) Deposit and cash balances.
(v) Interest-bearing securities.
NOTE: PIU division, once established, will not be closed without the approval of NRRDA which will decide how the
records will be preserved by the successor unit.
15.5 PRESERVATION OF RECORDS

15.5.1 PIUs and SRRDA will ensure preservation of records as these form vital elements of claims and their payments.
All the vouchers of the monthly account will be neatly tied up in separate folders, and kept under lock and key of the
Executive Engineer and the Divisional Accountant. Loss of any voucher will be serious dereliction of duty of both of
them. A complete list of records will be kept; and signed by the relieving and relieved officer at the time of transfers.
Special care, as prescribed for court or vigilance cases, will be taken in all cases of disputes with the contractor.
15.5.2 The destruction of account records in Public Works offices is governed by such rules as prescribed by
Government for the PWD divisions. However, no record will be destroyed before the period of limitation as applicable
to Government records is over. Records will also not be destroyed until the audit is over, or the vigilance case or the
court case to which these relate is over. In cases not covered by such rules, the specific concurrence of the
Accounts Officer is necessary before any records are ordered to be destroyed and that in each Divisional office full
details are maintained permanently in form PMGSY/GEN/F-63 of all records destroyed from time to time.
51
CHAPTER 16
REPORTS
16.1 GENERAL
SRRDA receives some amount from the World Bank or the Asian Development Bank for payment of fees to
consultants, research projects, workshops etc. The MoRD releases these funds to the SRRDA as Administrative
Expenses Fund. SRRDA has to submit quarterly reports to the MoRD on the utilization of these funds. MoRD will,
in turn, will send the reports to World Bank and the Asian Development Bank. The reports are in the following
formats:
A. STATEMENT FOR THE SOURCES AND USES OF FUNDS

Activity Particulars From the start to In the current year During the Total
the end of the to the end of the last quarter
last year quarter
Amount Received
Amount Spent
Balance
B STATEMENT OF CASH WITHDRAWAL (DISBURSEMENT) FOR INTERNATIONAL AGENCIES

TO CLAIM RE-IMBURSEMENT.
Activity Eligible Percentage Actual expenditure Admissible
during the current quarter re-imbursement
It may be noted that MoRD receives funds from the international organizations. Therefore, it knows the
funds received. Funds to the State come only as a grant from Government of India, not segregated as
World Bank or ADB grants, though the amount is known, generally.
52
FORMS OF ACCOUNTS FOR
ADMINISTRATIVE EXPENSES FUND
PMGSY/F-1-ADM
PMGSY ADMINISTRATIVE EXPENSES FUND

(Referred to in paragraph 13.4.1 of the Accounts Manual of Administrative Expenses Fund)
MONTHLY ACCOUNT OF RECEIPTS AND PAYMENTS (FOR SRRDA)
Name of SRRDA State

Month 200
Account Head of Account Ledger DEBIT BALANCES
Code Folio To end of For the To end of
Number previous month the month
month (4+5)
1 2 3 4 5 6
51.02 Central Administrative Expenses Fund transferred to PIUs
51.05 State Administrative Expenses Funds transferred by
SRRDA to PIUs
52.01 Cash in Chest
52.02 Imprest with Staff
52.03 Bank Balance
52.04 Fixed Deposits with the Bank
53.01 Tax Deducted at source by others

54.01 Travelling Expenses
54.02 Data Entry Costs
54.03 Internet Charges
54.04 Maintenance of Computers
54.07 Telephone Expenses
54.09 Micellaneous Office Expenses
54.10-54.19 Expenses approved by the State Government to be

incurred from Funds it provided
61.01 Miscellaneous Advances
And so on
TOTAL
ACCOUNTANT OFFICER-IN-CHARGE/SRRDA
NOTES TO THE MONTHLY ACCOUNT OF RECEIPTS AND PAYMENTS (FOR SRRDA)
Debit Balances
Note:
1. Cash in chest (and also Bank Balance) “to end of the month” shall be the closing balance as shown in the Cash Book. Cash in
chest (and also Bank Balance) “for the month” shall be worked by deducting the balance “ to end of the previous month” from the
balance “to end of the month” i.e. column 6 minus column 4.
2. Bank reconciliation statement along-with photocopy of bank account shall be enclosed with the monthly account.
53
PMGSY/F-1-ADM

MONTHLY ACCOUNT OF RECEIPTS AND PAYMENTS (FOR SRRDA)
Name of SRRDA State

Month 200
Account Head of Account Ledger CREDIT BALANCES

month (4+5)
1 2 3 4 5 6
51.01 Central Administrative Expenses Funds Received by SRRDA
from Government of India
51.04 State Administrative Expenses Funds received by SRRDA from
State Government
51.07 Bank Authorization Account (Books of SRRDA)
51.09 Surpluses and Reserves Account
60.01 Interest received from Bank
60.02 Miscellaneous Receipts
62.01 Unpaid Bills
62.02 Deposits from Suppliers
Total
ACCOUNTANT OFFICER-IN-CHARGE/SRRDA
Note:
In the annual account the total amount of incidental receipts shall be credited to incidental funds generated from interest etc.
54
PMGSY/F-1A-ADM

MONTHLY ACCOUNT OF RECEIPTS AND PAYMENTS (FOR PIU)
Name of PIU
Month 200
Account Head of Account Ledger Debit Balances
month (4+5)
1 2 3 4 5 6
51.08 Bank Authorization Account

52.01 Cash in Chest CBF
52.02 Imprest with Staff
54.01 Travelling Expenses

54.08 Outsourcing of execution and management functions
54.09 Miscellaneous Office Expenses
55 Administrative Expenses from the State Administrative
Expenses Fund
58 Capital Expenditure from Central Administrative Expenses Fund
58.01 Laboratory Equipment
59 Capital Expenditure from State Administrative Expenses Fund
And so on
TOTAL
ACCOUNTANT OFFICER-IN-CHARGE/ PIU
Notes:
1. Cash in chest (as also Bank Authorisation Account) “to end of the month” shall be the closing balance as shown in the Cash
Book. Cash Balance “for the month” shall be worked by deducting the balance “to end of the previous month” from the
balance “to end of the month” i.e. column 6 minus column 4.
2. Vouchers shall be retained by PIU for Audit.
55
PMGSY/F-1A-ADM

MONTHLY ACCOUNT OF RECEIPTS AND PAYMENTS (FOR PIU)
Name of Unit (PIU)

Month 200
Account Head of Account Ledger Credit Balances

month (4+5)
1 2 3 4 5 6
51.03 Central Administrative Expenses Fund received from SRRDA
51.06 State Administrative Expenses Fund received from SRRDA
51.09 Surpluses and Reserves Account
62.01 Unpaid bills
And so on
Total
ACCOUNTANT OFFICER-IN-CHARGE/PIU
Note:-
Total amount of incidental receipts shall be credited to Incidental funds generated from Interest etc. in the annual account.
56
PMGSY/F-1AA-ADM
Master Sheet of Accounts of All the PIUs
(Referred to in paragraph 13.5.2(a) of theAccounts Manual of Administrative Expenses Fund)
As at 200
For compiling and consolidating the accounts of all the PIUs
Line No. Head of Liabilities PIU A PIU B PIU C And so on Total

Account
1 51.03 Central Administrative Expenses Fund
2 51.06 State Administrative Expenses Fund received
up to 31st January, 2005
3 51.03 Deduct Central Admn FundTransferred to SRRDA
4 60.02 Misc. receipts
5 62.01 Unpaid bills
6 62.02 Deposits from Suppliers
7 Total (Lines 1 to 6)
Assets
57
8 52.01 Cash in chest
9 51.08 Bank Authorisation
10 52.02 Imprest with Staff
11 Debtors
12 61.01 Miscellaneous Advances
13 Central Administrative Expense Fund
14 54.01 Travel
15 54.05 Stationery
16 54.07 Telephone
17 54.09 Misc. office Expenses
18 58.01 Laboratory Equipment
19 Total (Lines 8 to 18)
20 Difference between totals of Assets and
Liabilities
PMGSY/F-1AAA-ADM

Master Sheet of Consolidated Balance Sheet of SRRDA and PIUs
(Referred to in paragraph 13.5.2(e) of theAccounts Manual of Administrative Expenses Fund)
As at
Liabilities Assets
Account Particulars SRRDA PIUs Consolidated Account Particulars SRRDA PIUs Consolidated
Head Head
51.01 Administrative 52.01 Cash with PIUs

Expenses Fund
Received by SRRDA
from GOI
60.01 Interest received 52.03 Bank Balance

from bank account SRRDA
Total
The following contra Items of mutual liabilities and assets between SRRDA and PIUs are not part of State Balance Sheet.
Bank Bank Authorisation

Authorisations Received
Programme Funds Programme Funds

received from SRRDA Transferred to PIUs
Total
Grand Total
ACCOUNTS OFFICER/DIVISIONAL ACCOUNTANT OFFICER-IN-CHARGE SRRDA/PIU
58
PMGSY/F-1A (ANNUAL) ADM

ANNUAL ACCOUNT OF RECEIPTS AND PAYMENTS (FOR SRRDA)
FOR THE YEAR 1ST APRIL, 200 TO 31ST MARCH, 200
Name of SRRDA
Account Head of Account Ledger Payments Debit Balances
Code Folio Opening During Closing
Number balance the balance on
on 1st April year 31st March
of the year of the year
1 2 3 4 5 6
54.01 Travelling expenses
55 Expenses approved by the State Government to be incurred
from Funds it provided
52.01 Cash in chest
52.03 Bank Balance
52.02 Imprest With Staff
And so on
Total
ACCOUNTANT OFFICER-IN-CHARGE
Notes:
1. Closing cash in chest (and also Bank Balance ) in column 6 shall be the closing balance as shown in the Cash Book. Opening
cash in chest (and also Bank Balance) in column 4 will also be as shown in the Cash Book. Column 5 for “During the Year” shall
be worked by deducting the amount in column 4 from the amount in column 6.
2. Bank reconciliation statement along-with photocopy of bank account shall be enclosed with the account
59
PMGSY/F-1A (ANNUAL)-ADM

ANNUAL ACCOUNT OF RECEIPTS AND PAYMENTS (FOR SRRDA)
Name of SRRDA
Account Head of Account Ledger Receipts CREDIT BALANCES

Code Folio Opening During Closing
Number balance the balance on
on 1st April year 31st March
of the year of the year
1 2 3 4 5 6
51.01 Administrative Expenses Funds Received by SRRDA from
Government of India
51.04 Administrative Expenses Funds received by SRRDA from State
Government
51.07 Bank Authorization Account (Books of SRRDA)
51.09 Surplus Funds and Reserves
60.01 Interest received from Bank Account
62.01 Unpaid Bills
Total
ACCOUNTANT OFFICER-IN-CHARGE
Note:
In the annual account the total amount of Miscellaneous Receipts and Interest Income shall be credited to the Surpluses and
Reserves.
60
PMGSY/F-1B (ANNUAL)-ADM

ANNUAL ACCOUNT OF RECEIPTS AND PAYMENTS (FOR PIU)
Name of PIU
Account Head of Account Ledger Receipts Credit Balances
Code Folio Opening Receipts Closing
Number balance During balance on
on 1st April the 31st March
of the year year of the year
1 2 3 4 5 6
51.03 Central Administrative Expenses Fund received from SRRDA
51.06 State Administrative Expenses Fund received by PIU from
SRRDA
51.07 Bank Authorization Account
62.01 Unpaid bills
And so on
Total
DIVISIONAL ACCOUNTANT DIVISIONAL OFFICER
Note:-
Total amount of incidental receipts shall be credited to Incidental funds generated from interest etc. in the annual account.
61
PMGSY/F-1B (ANNUAL)-ADM

ANNUAL ACCOUNT OF RECEIPTS AND PAYMENTS (FOR PIU)
Name of PIU
Year
Account Head of Account Ledger PaymentsDebit Balances
Code Folio Opening Payments Closing
Number balance During balance on
on 1st April the 31st March
of the year year of the year
1 2 3 4 5 6
54.01 Travelling expenses
52.01 Cash in chest CBF
52.02 Imprest With Staff
And so on
Total
ACCOUNTANT OFFICER-IN-CHARGE/PIU
Notes:
1. Closing cash in chest (and also Bank Balance ) in column 6 shall be the closing balance as shown in the Cash Book. Opening
cash in chest (and also Bank Balance) in column 4 will also be as shown in the Cash Book. Column 5 for “During the Year” shall
be worked by deducting the amount in column 4 from the amount in column 6.
2. Bank reconciliation statement along-with photocopy of bank account shall be enclosed with the account
3. Vouchers shall be retained by PIU for Audit.
62
PMGSY/F-1 (I&E-1)

Consolidated Income and Expenditure Account for the State of
(Referred to in paragraph 13.5.2(c) of the Accounts Manual of Administrative Expenses Fund)
From 1st April, to the end of the month of , 200
Name of SRRDA
Line Particulars SRRDA ALL PIUsAmount State(Col 4 + 6)

No. Amount
1 2 3 4 5 6 7
Part I. Central Administrative Expense Fund
Expenditure
Travel
Telephone
Etc. etc.
TOTAL Expenses taken to the Balance Sheet Sch L1
Part II. State Administrative Expenses Fund
Expenditure
Object Head of Expenditure 1 State Fund
Object Head 2
Etc. Etc.
TOTAL Expenses taken to the Balance Sheet Sch L1
ACCOUNTANT OFFICER-IN-CHARGE SRRDA
63
PMGSY/F-1(I&E-2)

Income and Expenditure Account (SRRDA) for the period from 1st April, to the end of the month of ,
200 .
Name of SRRDA
Part I. Administrative Expense Funds from Government of India, Amount
Ministry of Rural Development
Expenses
Travelling expenses
Telephone Expenses
Computer Maintenance Expenses
Etc. etc.
TOTAL Expenses taken to the Balance Sheet
Part II. State Administrative Expenses Fund ( from the State Government
Expenses
(List the expenses Account head wise)
III. Surpluses
Income
Miscellaneous Income
Interest Income
Total
(Carried to the Surpluses and Reserves in the Balance Sheet)
ACCOUNTANT OFFICER-IN-CHARGE SRRDA
64
PMGSY/F-1(I&E-3)

Income and Expenditure Account (PIU)
for the period from 1st April, 2004 to the end of the , 20
Name of PIU
Part I. Administrative Expense Funds from Government of India, Ministry Current Year
of Rural Development Amount Amount
Expenses
Travelling expenses
Telephone Expenses
Etc. Etc.
Part II. State Administrative Expenses Fund ( from the State Government
Expenses
(List the expenses Account head wise)
III. Surpluses
Miscellaneous Income
(Carried to the Surpluses in the Balance Sheet)
DIVISIONAL ACCOUNTANT DIVISIONAL OFFICER
65
PMGSY-F-2-ADM

State Balance Sheet
Consolidated Balance Sheet of the SRRDA and PIUs
As at last (date, month year)

Line No. Particulars Schedule No. Amount
CAPITAL FUND AND LIABILITIES
1 Central Administrative Expenses Fund L 1 (PM)GSY/SCH/F-52A-ADM)
2 State Administrative Expenses Fund L 1 (PMGSY/SCH/F-52A-ADM)
3 Surplus Funds (from interest and other receipts) L 2 (PMGSY/SCH/F-52B-ADM)
4 Interest Income L 2 (PMGSY/SCH/F-52B-ADM)
5 Bank Authorisation
6 Deposits Repayable L3 (PMGSY/SCH/F-52C-ADM)
7 Current Liabilities L 4 (PMGSY/SCH/F-52D-ADM)
8 Total
ASSETS
9 Cash in Chest with SRRDA
10 Cash in Chest with PIUs
11 Bank Balance
12 Imprest with Staff
13 Current Assets A1(PMGSY/SCH/F-53E-ADM)
14 Durable Assets A2(PMGSY/SCH/F-53F-ADM)
Total
Note: Add a column for the previous year in the annual Balance Sheet.
66
PMGSY/F-2A-ADM

Monthly/Annual Balance Sheet
Name of SRRDA
Balance Sheet as at
FUNDS AND LIABILITIES Schedule Current Year Previous Year

Amount Amount*
Central Administrative Expenses Fund L1(PM)GSY/SCH/

F-52A-ADM)
State Administrative Expenses Fund L1(PM)GSY/SCH/
F-52A-ADM)
Surpluses L2 (PMGSY/SCH/
F-52B-ADM)
Deposits Repayable L3(PMGSY/SCH/
F-52C-ADM)
Current Liabilities L4(PMGSY/SCH/
F-52D-ADM)
TOTAL Funds and Liabilities
ASSETS
Central Administrative Expenses Fund transferred to PIUs
State Administrative Expenses Fund transferred to PIUs
Cash in Chest
Bank Balance
Imprest with staff
Current Assets A1(PMGSY/SCH/
F-53E-ADM)
Durable Assets A2(PMGSY/SCH/
F-53F-ADM)
TOTAL

* This column is only for the Annual Balance Sheet
67
PMGSY/F-2B-ADM

Balance Sheet Monthly/Annual
(Referred to in paragraph 12.4.6 of Accounts Manual of Administrative Expenses Fund
Name of PIU
Balance Sheet as at
CAPITAL FUND AND LIABILITIES Schedule Amount

Central Administrative Expenses Fund L 1 (PM)GSY/SCH/F-52A-ADM)
State Administrative Expenses Fund L 1(PMGSY/SCH/F-52A-ADM)
Surplus Funds and Miscellaneous Income L 2(PMGSY/SCH/F-52B-ADM)
Deposits Repayable L3(PMGSY/SCH/F-52C-ADM)
Current Liabilities L 4(PMGSY/SCH/F-52D-ADM)
Total Liabilities
ASSETS
Cash in Chest with SRRDA
Cash in Chest with PIUs
Bank Balance
Imprest with Staff
Current Assets A1(PMGSY/SCH/F-53E-ADM)
Durable Assets A2(PMGSY/SCH/F-53F-ADM)
TOTAL Assets
68
PMGSY/IA/F-3

(Referred to in paragraphs 7.6.1 and 13.1of the Accounts Manual of Administrative Expenses Fund)
CASH BOOK
Name of SRRDA
Month 200
DEBIT RECEIPTS
Date Money Receipt/ Particulars of Ledger Folio Cash Bank Account Code
Voucher Number Transaction Number
Rs. Rs.
1 2 3 4 5 6 7
PAYMENTS CREDIT
Date Voucher Number Particulars of Ledger Folio Cash Cheque Bank Account Code
Transaction Number Number
Rs. Rs.
8 9 10 11 12 13 14 15
Note:
1. Cash Book pages shall be machine numbered.
2. Cash Book is the ledger account for cash and bank transactions.
3. Receipt Side of Cash Book shall be the Debits to Cash and Bank Account, whereas payment side of Cash Book shall be credits
to cash and bank account.
4. Account codes shall be recorded in column 7 and 15 of the Cash Book for each entry to facilitate ledger posting.
4. Account code wise details shall be recorded in column 7 and 15 of the Cash Book for each entry to help in ledger posting.
5. Bank Column is for SRRDA and Bank Authorisation Column for PIU.
69
PMGSY/IA/F-3A

CASH BOOK of PIU
Name of PIU
Month 200
DEBIT RECEIPTS
Date Money Receipt/ Particulars of Ledger Folio Cash Bank Account Code
Voucher Number Transaction Authorisation Number
Rs. Rs.
1 2 3 4 5 6 7
PAYMENTS CREDIT
Date Voucher Number Particulars of Ledger Folio Cash Cheque Bank Account Code
Transaction Number Authorisation Number
Rs. Rs.
8 9 10 11 12 13 14 15
Note:
1. Cash Book pages shall be machine numbered.
2. Cash Book is the ledger account for cash and bank transactions.
3. Receipt Side of Cash Book shall be the Debits to Cash and Bank Account , whereas payment side of Cash Book shall be credits
to cash and bank account.
4. Account codes shall be recorded in column 7 and 15 of the Cash Book for each entry to facilitate ledger posting.
70
PMGSY/IA/F-4

IMPREST CASH BOOK
Name of PIU/SRRDA
IMPREST CASH BOOK OF SHRI
DESIGNATION
Date Voucher Number Particulars of Transaction Amount Account Code Number

1 2 3 4 5
ABSTRACT OF CASH PAYMENTS
Voucher Account Code Account Code Account Code Account Code Account Code
Number Number Number Number Number Number
Amount Amount Amount Amount Amount
1 2 3 4 5 6
Signature of Imprest Holder
Note:
1. Imprest Cash Book pages shall be machine numbered.
2. Abstract of cash payments shall be printed on the overleaf of Imprest Cash-Book.
PMGSY/IA/F-5
MONEY RECEIPT BOOK ORIGINAL
(Referred to in paragraphs 5.2.5, 7.3.1 and 7.7.1 of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU/SRRDA
BOOK NUMBER RECEIPT NUMBER
DATE
RECEIVED WITH THANKS FROM M/s/ SHRI
A SUM OF RUPEES (IN WORDS)
ON ACCOUNT OF .
Rs. .............................
Revenue Stamp
Signature
Designation
Note:
1. Money Receipt Book shall be printed in Duplicate.
2. Book shall contain 50 Receipts.
3. Book number and Receipt number shall be machine numbered.
4. Reversible carbon paper shall be used.
71
PMGSY/IA/F-5

MONEY RECEIPT BOOK DUPLICATE
(Referred to in paragraph 7.3.3 (Note 1) of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU/SRRDA
BOOK NUMBER RECEIPT NUMBER
DATE
RECEIVED WITH THANKS FROM M/s/ SHRI
A SUM OF RUPEES (IN WORDS)
ON ACCOUNT OF .
Rs..............................
Account Code No.
Entered in Cash Book Folio
Signature
Accountant.
Signature
Designation
PMGSY/IA/F-6

PAYMENT VOUCHER
(Referred to in paragraph 7.4.7 (Note 4) of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU/ SRRDA

Voucher Number Date
Particulars of Transaction Amount
TOTAL
Rupees (In words)

Passed for payment of Rs.......................
Rupees (In words)
Date Officer-in-charge/PIU/ SRRDA
Received Rs.
Rupees (In words)
Date
Revenue Stamp
Signature of Payee.
72
PMGSY/IA /F-7

TRANSFER ENTRY BOOK
(Referred to in paragraphs 8.1.9 and 13.1 (iii) of the Accounts Manual of Administrative Expenses Fund)
Name of PIU/SRRDA
Month 200
Date T.E.No. Particulars of DEBITS CREDITS Dated
Transaction with Ledger Account Code Amount Ledger Account Code Amount Initials of
reasons for Folio Number and Folio Number and its Accountant
adjustment its description description
1 2 3 4 5 6 7 8 9 10
Note: Pages of Transfer Entry Book shall be machine numbered.
PMGSY/IA/F-7A

BANK AUTHORISATION TRANSFER ENTRY BOOK
(Referred to in paragraph 13.1 (ii) of the Accounts Manual of Administrative Expenses Fund)
Name of PIU/SRRDA
Month 200
Date Bank Particulars Ledger DEBITS CREDITS Dated
Authorisation of Folio Account Amount Ledger Account Amount Initials of
Order Number Transaction Code Folio Code Accountant
Number Number
1 2 3 4 5 6 7 8 9 10
Note:
Pages of Transfer Entry Book shall be machine numbered.
73
PMGSY/IA/F-8

GENERAL LEDGER (DEBIT BALANCES)
NAME OF PIU / SRRDA

ACCOUNT CODE NUMBER
ACCOUNT CODE DESCRIPTION /
Date Vr. / T.E. No. Particulars Cash Book/ Transactions for the Month Closing
of TE/BATE DEBIT CREDIT Debit Balance
Transaction Entry Book Balance (Last +
Folio (5-6) column 7)
1 2 3 4 5 6 7 8
Opening
Balance
Note:
1. Pages of ledger shall be machine numbered.
2. Separate page shall be allotted to each Account Code
3. Index shall be prepared in the beginning of ledger to show page numbers allotted to each Account Code.
4. Opening balance shall be the first transaction entered in the particulars column when carried over to the next sheet or page.
5. If the credit transactions exists, then the balance in column 7 will be a minus debit balance.
PMGSY/IA/F-9

GENERAL LEDGER (CREDIT BALANCES)
(Referred to in paragraph 9.4 of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU / SRRDA

ACCOUNT CODE NUMBER
Account Code Description /
Date M.R/Vr/TE Particulars Cash Book Transactions for the Month Closing
No. of /TE/BATE CREDIT DEBIT Credit Balance
Transaction Entry Book Folio Balance(6-7) (Last + column 7)
1 2 3 4 5 6 7 8
Note:
1. Pages of ledger shall be machine numbered.
2. Separate page shall be allotted to each Account Code
3. Index shall be prepared in the beginning of ledger to show page numbers allotted to each Account Code.
4. Opening balance shall be the first transaction entered in the particulars column when carried over to the next sheet or page.
5. If a debit transactions exists, then the balance in column 7 will be a minus credit balance..
74
PMGSY/IA/F-10 ADM

REGISTER OF CENTRAL/STATE FUNDS TRANSFERRED BY SRRDA TO PIU
(Referred to in paragraph 13.1. (vi) of the Accounts Manual of Administrative Expenses Fund)
Name of SRRDA
Name of PIU
Transaction amount
Date Particulars of Cash Book/ Fund Transfered FundsReceived Debit Balance(4-5) Balance after
Transaction Transfer Entry (Debit) Back(Credit) the transaction
Book Folio (last balance +6)
1 2 3 4 5 6 7
NOTE:
1. Pages of Register shall be machine numbered.
2. Register shall be maintained PIU-wise.
3. Each PIU shall be allotted page numbers and index thereof shall be prepared in the beginning of the register.
4. Surplus funds, if any, received back from PIU shall be accounted for in column 5
5. An abstract shall also be prepared showing the position of net funds transferred to each PIU during the month and to end of the
month.
6. There will be a separate register for Central and State Funds.
PMGSY/IA/F-10A-ADM

ABSTRACT PIU-WISE RESIGTER OF ADMINISTRATIVE EXPENSES FUND TRANSFERRED BY SRRDA
(Referred to in paragraph 13.1. (vi) of the Accounts Manual of Administrative Expenses Fund)
S. No. Name of PIU Ledger Folio Central/State Administrative Expensed Fund Outstanding
at the end of
APRIL May June July Aug Sept Oct and

so on
1 2 3 4 5 6 7 8 9 10
TOTAL
Note:
Columns for 12 months shall be opened in the same manner as for the months of April and May.
75
PMGSY/IA/F-10B-ADM

REGISTER OF PIU-WISE BANK AUTHORISATIONS
(Referred to in paragraph 13.1. (vii) of the Accounts Manual of Administrative Expenses Fund)
NAME OF SRRDA
Account Code No. 51.07 BANK AUTHORISATIONS TO PIU
NAME OF PIU
Date Vr. / Particulars Cash Book / Transaction Amount

T.E. No. of Transaction TE/BATE Bank Bank Credit Closing Credit
Entry Book Authorisation issued Authorisation Balance Balance (Last
Folio CREDIT used by PIU (5-6) balance +
DEBIT column 7)
1 2 3 4 5 6 7 8
Note:
1. Pages of Register shall be machine numbered.
2. Register shall be maintained PIU-wise.
3. Each PIU shall be allotted page numbers and its index prepared in the beginning of the register.
4. Authorisations cancelled, lapsed, used, shall be accounted for in column 5.
5. An abstract shall also be prepared showing the position of outstanding Bank Authorisation with each PIU.
PMGSY/IA/F-10C-ADM

ABSTRACT OF PIU-WISE OUTSTANDING BANK AUTHORISATIONS
(Referred to in paragraph 13.1. (vii) of the Accounts Manual of Administrative Expenses Fund)
S. No. Name Ledger OUTSTANDING AUTHORISATIONS AT THE END OF

of PIU Folio
APRIL May June July Aug Sept Oct and

so on
1 2 3 4 5 6 7 8 9 10
TOTAL
Note: Columns for 12 months shall be opened in the same manner as for the months of April and May.
76
PMGSY/IA/F-10D-ADM

PIU-Wise Register of Cheques Issued
(Referred to in paragraph 13.3 (viii) of the Accounts Manual of Administrative Expenses Fund)
Name of PIU
S. No. Date Voucher No. Cheque Amount Month of Remarks
Bank Statement
in which encashed
Abstract at the end of the Month:
1. Un-cashed cheques outstanding at the end of the previous month
2 Deduct the cheques encashed during the month
3 Balance (1 minus 2)
4 Add Cheques issued during the month not encashed
5 Total (3 + 4)
Details of outstaning Cheques as on

S. No. PIU Cheque No. Amount
PMGSY/IA/F-10E-ADM

Register of Remittances into the Bank
(Referred to in paragraph 13.1. (viii) of the Accounts Manual of Administrative Expenses Fund)
Name of PIU/SRRDA
S. No. Date Bank Remittances Amount Month of Bank Remarks
Reconciliation Rs. Statement in which
Statement/Pay in slip the deposit appears
1 2 3 4 5 6
Abstract at the end of the Month

Remittances not reported by the bank
Brought forward from the previous month
Accounted for by the bank
Details of the Remittances Outstanding
S. No. Date PIU Amount
77
PMGSY/IA/F-17

TRANSFER ENTRY ORDER
NAME OF PIU/SRRDA
MONTH Transfer Entry Order No.
Date Particulars of transaction DEBIT CREDIT

with reasons for adjustment Account Amount Account Amount
Code Number Code Number
1 2 3 4 5 6
PMGSY/SR/F-22

REGISTER OF DEPOSITS REPAYABLE
NAME OF PIU / SRRDA
S. Month and Name of Name of Opening APRIL................... MAY
No. year from supplier/ work Balance and
which so on
transaction
dated
Voucher/ Transfer CREDIT DEBIT Balance
Entry
Number Date
1 2 3 4 5 6 7 8 9 10 11
Note:
1. Column for 12 months shall be opened on the same pattern as for the month of April.
2. The register shall be divided in two parts.
a) Earnest Money Deposit
b) Others
3. Month and year from which transaction dated in column 2 shall be filled in for the transactions brought forward from the
previous year.
78
PMGSY/SR/F-23

REGISTER OF MISCELLANEOUS ADVANCES
NAME OF PIU / SRRDA
S. Month and Name of Particulars Opening APRIL................... MAY
No. year from supplier/ of Balance and
which contractor/ Transac- so on
transaction employee tion
dated
Voucher/ Transfer CREDIT DEBIT Balance
Entry
Number Date
1 2 3 4 5 6 7 8 9 10
Note:
2. The register shall be divided in four parts viz.
a) Against contractors / suppliers.
b) Against staff.
c) Advances on DPR
3. Month and year from which transaction dated in column 2 shall be filled in for the transactions brought forward from the previous
year.

REGISTER OF S.T.D./TRUNK CALL CHARGES
REGISTER OF TRAVELLING EXPENSES
REGISTER OF CONSUMABLE STORE
As per State Government Orders
79
PMGSY/SR/F-28

Register of Government Sanctions Releasing Administrative ExpensesFund
(Referred to in paragraph 13.3 (iii) (Note) of the Accounts Manual of Administrative Expenses Fund)
Serial Administrative Sanction Purpose and Amount Received Acknowledged Remarks
No. Expenses Details by MR No.
Fund and Date
Received From
Number Date MoRD World Asian State
Funded Bank Dev Government’s
Funded Bank Commitments
Funded
1 2 3 4 5 6 7 8 9 10
Notes:
1. This register will have continuous serial numbers, starting with Serial No. 1 each financial year.
2. All sanctions will bear the serial no. shown in this Register, and kept in one folder.
3. Work out the totals at the end of each quarter.
PMGSY/SR/F-32

REGISTER OF CHEQUE/RECEIPT BOOK
NAME OF PIU/ SRRDA
Book Number Designation of Date of first Date of last Date of Return of Dated initials of
Officer entry in Cash Book entry in Cash Book counterfoils Accountant
1 2 3 4 5 6
Note:
Separate Register shall be maintained for money receipt books and cheque books.
80
PMGSY/SR/F-32A

REGISTER OF MISCELLANEOUS RECOVERIES
Division Period
Item Number Substance of Order Dated Note of recoveries made against Dated initials Remarks
No. and date initials of each order of Divisional
of Divisional Accountant
authority Accountant
ordering
recovery Nature From Amount Due date No. of Month Amount Progressive
and whom recoverable or dues voucher Total of
particulars due of or account Recoveries
of the recovery
recovery
and of the
81
account
concerned
1 2 3 4 5 6 7 8 9 10 11 12 13
Rs. Rs.
PMGSY/SS/F-45

REGISTER OF UNPAID BILLS
(Referred to in paragraphs 9.6 and 12.4.3 of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU/SRRDA
S. Month and Name of Particulars Opening APRIL MAY
No. year from supplier of Balance and
which trans- supplies so on
action dated
Mate- Quan- Voucher/ Transfer CREDIT DEBIT Balance
rial tity Entry
Number Date
1 2 3 4 5 6 7 8 9 10 11
Rs. Rs. Rs.
Note:
2. Month and year from which transaction dated in column 2 shall be filled in for the transactions brought forward from the
previous year.
3. Balance, if any, after the payment to supplier shall be credited to Miscellaneous Receipts.
PMGSY/SS/F-46

Register of Durable Asset
Name of SRRDA/PIU
Part I Assets purchased from Central Administrative Fund
Note: Separate pages will be assigned for each class or category of asset. The following classification will be adopted:
1. Laboratory Equipment
2. Computer and related accessories
3. Communication equipment (fax, telephones, photocopiers etc.)
4. Lands and Buildings
5. Spare Nos. for future use
Classification: Code Description
Serial Particulars with serial no. Voucher No. Date Amount Rs. ID No. assigned to the Date of Disposal
No. of the asset, model etc. asset/printed on the asset
Register of Durable Asset

Name of SRRDA/PIU
Part II Assets purchased from State Administrative Fund
Note: Separate pages will be assigned for each class or category of asset. The following classification will be adopted:
3. Communication equipment (fax, telephones, photocopiers etc.)
4. Lands and Buildings
5. Spare Nos. for future use
Classification: Code ..................... Description .....................
Serial Particulars with serial no. Voucher No. Date Amount Rs. ID No. assigned to the Date of Disposal
No. of the asset, model etc. asset/printed on the asset
82
PMGSY/SS/F-51

APPLICATION-CUM-BILL FOR REFUND OF LAPSED DEPOSIT
(Referred to in paragraph 11.3 of the Accounts Manual of Administrative Expenses Fund)
To
The Divisional Officer
Sir,
The refund of lapsed deposits aggregating Rs.
(Rupees ) as mentioned in Cols. 1 to 4 below, is due to me/us and
its payment may be arranged –
Purpose for No. & date of Amount Amount Amount Particulars of Remarks
which challan or deposited & claimed lapsed to lapsed statement
deposited authority Office/Bank Govt.
with/under in which Year Item
which deposited No.
deposited
1 2 3 4 5 6(a) 6(b) 7
Note: Column 5 to 7 are for use in Departmental Offices.

*Received payment
Date Signature of claimant(s)
I have satisfied myself about the identity of the claimant(s) and his/their title to the amount claimed vide details given in
Columns 5 to 7 above. It is requested that the payment may be made by cheque in favour of self/ [Claimant/
(s)] or by bank draft in favour of [Claimant(s)] at (Station).
No. Signature
(Divisional Officer)
Date
83
PMGSY/SCH/F-52-ADM

Bank Authorisation Utilisation and Reconciliation Statement
(Referred to in paragraph 12.3.2 and 13.3 (viii) of the Accounts Manual of Administrative Expenses Fund)
PIU will fill in Parts II and III of this statement and send it with the Monthly Account to SRRDA
Name of PIU .................... Month ............................
Part I For office use in State Rural Roads Development Agency

(This becomes the voucher for entry on the payment side in the bank column of the SRRDA’s Cash Book. The classification of the
transaction will be Bank Authorisation Account Head 51.07)
Voucher No. Month Date Amount
Debit Bank Authorisation Account
Classification 51.07
Credit Bank Account in the Cash Book
Classification 52.03
Signature of Accountant Signature of Financial Controller
Part II (To be prepared by the PIU)
Line Month and Year Account of Bank Authorisations Received

No. and Utilised
Amount Amount
Inner Column Outer Column
1 Opening Balance of Bank Authorisation as per Cash Book

2 Bank Authorisatons received in the month
3 Bank Authorisations cancelled in the month
4 Total (1+2-3)
5 Deduct Cheques Issued during the month, as per
statement attached.
6 Closing Balance of Bank Authorisations as per Cash Book
(It should equal (Line No. 4 minus Line 5)
Signature of Accountant Signature of In-charge PIU
Part III
Bank Reconciliation Statement for un-cashed cheques
1. Opening balance of Uncahsed Cheques

2. Cheques issued during the month
3. Total
4. Deduct cheques encashed during the month as per bank statement
5. Closing balance of uncashed cheques with details of Cheque No., date and amount
Notes:1. Attach a statement of uncashed cheques
2. The statement should reach SRRDA latest by the 5th of the next month.
Signature of Accountant Signature of Officer-In-Charge of PIU/SRRDA
84
PMGSY/SCH/F-52(REM)-ADM

Bank Remittances Reconciliation Statement
PIU will fill in Part II of this statement and send it with the monthly account to SRRDA
Name of PIU Month
Part I For office use in State Rural Roads Development Agency

(This becomes the voucher for entry on the receipt side in the bank column of the SRRDA’s Cash Book.
The classification of the transaction will be Central Administrative Expenses Fund Minor Head 51.02 or
State Administrative Expenses Fund Minor Head 51.05)
Voucher no. Date Amount
Debit Bank Account in the Cash Book 52.03
Credit Central Administrative Expenses Fund Transferred to PIU 51.02
Credit State Administrative Expenses Fund Transferred to PIU 51.05
Signature of Accountant Signature of Financial Controller

Part II (To be prepared by the PIU)
Line No. Month and Year Account of Bank Authorisations

Received and Utilised
Amount Amount
Inner Column Outer Column
1 Outstanding Remittances into the accredited Bank of SRRDA

2 Add Remittances made during the month as per details below:
Serial No. Date Particulars/Purpose
Total
3 Total Remittances (1+2)
4 Deduct remittances accounted for by the bank
(copy of statement enclosed)
5 Remittances Outstanding ( 3 -4)
Serial No. Date Particulars/Purpose
Signature of Divisional Accountant Signature of In-charge PIU
85
PMGSY/SCH/F-52A-ADM

SCHEDULES FORMING PART OF BALANCE SHEET AS AT (last date and month) year
(Referred to in paragraphs 12.4.9 and 13.4.3 of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU/SRRDA
SCHEDULE L1-ADMINISTRATIVE EXPENSES FUNDS
Current Year Previous Year*
PART I: Central Administrative Expenses Fund
Opening Balance
Received during the year so far
Total
Deduct as per Income and Expenditure Account
BALANCE of which:
a. Assets per contra
b. forms part of Bank balance , deposits and current assets
PART II State Administrative Expenses Funds
Opening Balance
Received during the year so far
Total
Deduct as per Income and Expenditure Account
BALANCE of which:
a. Assets per contra
b. forms part of Bank balance, deposits and current assets
Divisional Accountant Divisional Officer
PMGSY/SCH/F-52B-ADM
SCHEDULES FORMING PART OF BALANCE SHEET AS AT
(Referred to in paragraphs 12.4.9 & 13.4.3 of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU/SRRDA
SCHEDULE L2– SURPLUS FUNDS AND MISCELLANEOUS INCOME: Current Year Previous Year*
Opening Balance (A)
Add transfer of surplus from Income and Expenditure Account (B)
(Deduct): Transferred to the SRRDA during the year (C)
TOTAL D=A+B-C
*To be used only in the Annual Balance Sheet
Divisional Accountant / Accountant Divisional Officer / Officer-In-charge SRRDA
86
PMGSY/SCH/F-52C-ADM

(Referred to in paragraphs 12.4.9 & 13.4.3 of the Accounts Manual of Administrative Expenses Fund )
NAME OF PIU/SRRDA
SCHEDULE L3. DEPOSITS RE-PAYABLE : Current Month/Year Previous Year*
Balance as per the Balance Sheet of the previous month/year.

Add: Received during the month/year
Less: Refunded during the month/year
Closing Balance
Details of deposits outstanding for over three years.
*To be used only in the Annual Balance Sheet
Divisional Accountant / Accountant Divisional Officer / Officer-in-charge SRRDA
PMGSY/SCH/F-52D-ADM

(Referred to in paragraphs 12.4.9 & 13.4.3 of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU/SRRDA
SCHEDULE L4 CURRENT LIABILITIES Current Month/Year Previous Year*
Unpaid Bills outstanding

Bills outstanding for more than six-months
Number of Parties: Amount
*To be used only in the annual balance sheet
PMGSY/SCH/F-53E-ADM

(Referred to in paragraphs 12.4.9 and 13.4.3 of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU/SRRDA
SCHEDULE No. A 1 – CURRENT ASSETS Current Month/Year
Particulars Amount
A. Misc Advances
(i) Considered safe (outstanding for not more than 6 months)

(ii) Considered un-safe
87
PMGSY/SCH/F-53F-ADM

(To be attached to the Annual Balance Sheet)
(Referred to in paragraphs 12.4.9 & 13.4.3 of the Accounts Manual of Administrative Expenses Fund)3
Schedule No. A 2 Schedule of Durable Assets
Part I. Assets from the Central Opening Addition Total Disposal Balance
Adminsitrative Expenses Fund Balance during the year during the year
Total
Part II. Assets from the State Adminsitrative Expenses Fund
1. Category wise
2.
PMGSY/SCH/F-56

LIST OF SCHEDULES TO BE ANNEXED WITH BALANCE SHEET (PIU)
Schedule Form Name of Schedule
PMGSY/SCH/F-52-ADM Bank Authorisation Utilisation and Reconciliation Statement
PMGSY/SCH/F-52 REM-ADM Bank Remittance Reconciliation Statement
PMGSY/SCH/F-52A-ADM Schedule of Administrative Expenses Fund
PMGSY/SCH/F-52B-ADM Schedule of SURPLUS Funds/Misc. Income
PMGSY/SCH/F-52C-ADM Schedule of Deposits Repayable
PMGSY/SCH/F-52D-ADM Schedule of Current Liabilities
PMGSY/SCH/F-53E-ADM Schedule of Current Assets
PMGSY/SCH/F-53F-ADM Schedule of Durable Assets
DIVISIONAL ACCOUNTANT
PMGSY/SCH/F-57

SCHEDULE FOR CASH BALANCE
(Referred to in paragraph 12.5.2 (g) Note of the Accounts Manual of Administrative Expenses Fund)
NAME OF PIU
MONTH 200
Sl. No. PARTICULARS AMOUNT

1. Cash in Chest
2. Imprest with staff
TOTAL
Divisional Accountant Divisional Officer
88
PMGSY/GEN/F-59

REGISTER OF DIVISIONAL ACCOUNTANT’S OBJECTIONS
Item Brief particulars of the Name of Amount Divisional Remarks of
No. transaction or order placed Objection (Rule placed under Officer’s replies the Accounts
under objection by the or Order to objection with reason for Officer
Divisional Accountant be quoted) not admitting
the objection
PMGSY/GEN/F-60

DIVISIONAL OFFICER’S REPORT OF SCRUTINY OF ACCOUNTS
1. After due examination of the office copies of the Monthly Account, and the Balance Sheet with supporting documents, for the
month of 20 , which were dispatched under the signature of the Divisional Accountant during my absence from
headquarters, I respect responsibility for the same.
2. I have initialed the office copies of the Monthly Account, and the Balance Sheet, and the List of Schedules and a duplicate copy
of the Monthly Account and the Balance Sheet signed by me is attached to this report.
3. I have issued instructions for the adjustment, in the next month’s accounts, for the errors and omissions detailed below, which
my scrutiny of the accounts has disclosed:
Divisional Officer
PMGSY/GEN/F-63
PMGSY PROGRAMME FUND

REGISTER OF DESTRUCTION OF RECORDS
Item Description of records destroyed Sanction to destruction Date of Dated Remarks

No. Nature of Volume Period to Reference to Dated Destruction signature
document or size which the the rule or initials of the of the
record correspondence Divisional officers
relates Officer witnessing
destruction
1 2 3 4 5 6 7 8 9
89
PMGSY/GEN/F-64A - ADM

REQUISITION FOR BANK AUTHORISATIONS FOR CENTRAL ADMINISTRATIVE EXPENSES FUNDS
(Referred to in paragraph 13.3 (iv) 1 of the Accounts Manual of Administrative Expenses Fund)
Name of PIU
No. Date:
To
Empowered Officer
SRRDA (PMGSY)
Kindly issue Bank Authorisation amounting to Rs.

(Rupees ) for the quarter ending . Details are as under:
S. No. Purpose Amount To Date Bank Bank Authorisation Remarks

Expenditure authorisation Required
available
1. 2. 3.
TOTAL
OFFICER-IN-CHARGE /PIU
PMGSY/GEN/F-64B- ADM

REQUISITION FOR BANK AUTHORISATIONS FOR STATE ADMINISTRATIVE EXPENSES FUNDS
(Referred to in paragraph 13.3 (iv) of the Accounts Manual of Administrative Expenses Fund)
Name of PIU
No. Date:
To
Empowered Officer
SRRDA (PMGSY)
Kindly issue Bank Authorisation amounting to Rs.

(Rupees ) for the quarter ending . Details are as under:
S. No. Purpose Amount To Date Bank Bank Authorisation Remarks

Expenditure authorisation Required
available
1. 2. 3.
TOTAL
OFFICER-IN-CHARGE /PIU
90
PMGSY/GEN/F-65

BANK AUTHORISATION AUTHORITY
(Referred to in paragraph 13.3 (iv) of the Accounts Manual of Administrative Expenses Fund)
Name of PIU
Bank Authorisation amounting to Rs.
(Rupees )
for the quarter ending is issued as under:
S.No. Name of Payees Purpose Amount Remarks
TOTAL
Empowered Officer
SRRDA
No. Date:
Copy forwarded to:
1. The Officer In-Charge, PIU
2. The Chief Manager (Bank)
3. Accounts Section of SRRDA for adjustment in the accounts.
Empowered Officer
SRRDA
91
ALPHABETICAL INDEX OF ADMINISTRATIVE EXPENSES FUND
Accounting System / Procedure for Administrative Expenses Fund 4 & 30

Annual Proposals 2
ACCOUNTS OF DIVISIONAL OFFICERS OF PIUs 34
ACCOUNTS OF STATE RURAL ROADS DEVELOPMENT AGENCY 39
ACCOUNTS OF STATE RURAL ROADS DEVELOPMENT AGENCY - Accounting Procedure 39 & 40
ACCOUNTS OF STATE RURAL ROADS DEVELOPMENT AGENCY - Annual Accounts 42
ACCOUNTS OF STATE RURAL ROADS DEVELOPMENT AGENCY - Bank Reconciliation 41
ACCOUNTS OF STATE RURAL ROADS DEVELOPMENT AGENCY - Monthly Account and 41
Balance Sheet
ACCOUNTS OF STATE RURAL ROADS DEVELOPMENT AGENCY - Single Bank Account 39
ACCOUNTS OF STATE RURAL ROADS DEVELOPMENT AGENCY - State Balance Sheet 42
Accounts Officer 8
ACCOUNTS OFFICER - RELATIONS WITH 16
Actuals - Watching of Expenditure 19
Administrative Expenses Fund 4 & 10
Assets 8
Assets Accounting Procedure 30
Annual Proposals 2
AUDIT 44
Audit - Results of Report 44
Audit - Statutory 44
Audit by Comptroller and Auditor General of India 45
Audit - Internal 45
Audit Committee 48
Audit Officer 8
Auditor 8
Balance Sheet - Opening 6
Bank 8
Bills and Vouchers 24
Book Transfer 8
Cash 20
Cash Book 25
Cash Book - Balancing 25
Cash Book – Cash Verification 26
Cash Book - Rectification of Errors 25
Cash Book - Upkeep 25
Cash Modes of Obtaining 20
Cash, Custody of 27
Central Administrative Expenses Fund 8
Chart of Accounts 8 & 10
Cheque - Procedure for cancellation 21
92
Cheque Books 27 & 49

Competent Authority 8
Costs: State’s Share of Costs 4
Deposits - Lapsed 33
DEPOSITS REPAYABLE 33
Depreciation 7 & 31
Direction Office 8
Direction Officer 8
Division and Divisional Office 8
Divisional Accountant 16
Divisional Officer 8
Double Entry System of Accounting 7
Earnest Money 33
Executing Agency 9
Flow of Funds 2
Funds - PMGSY Funds - Classification 10
Government 9
Grant 9
Hierarchy for the execution of PMGSY 1
Imprest 26
Inauguration Ceremonies 31
INCOME 30
Inspection by the Audit Officer/Auditor/Accounts Officers/Internal Auditors 18
Ledger of Debit Balances 31
Ledger of Credit Balances 31
Liabilities 9
Liabilities Awaiting Incorporation 31
Major Features of the PMGSY Accounting System for Administrative Expenses Fund 5
Major similarities between the Government and the PMGSY Accounting System 5
Major Head 9
Ministry of Rural Development, Government of India 1
Minor Head 9
Miscellaneous Advances 32
National Rural Roads Development Agency (NRRDA) 1&9
Nodal Department 2&9
Office Expenses 9
On Line Accounting System 10
Payments - Manner of Payment 23
PIU Accounts - Annual 37
PIU Accounts - Authenticating the Accounts 37
PIU Accounts - Bank Authorisation Statement 35
PIU Accounts - Compilation of Accounts 35
PIU Accounts - Monthly Account 35
PIU Accounts - Monthly Balance Sheet 36
93
PIU Accounts - Registers and Schedules 36

PIU Accounts - Review of Unsettled Accounts 38
PIU Accounts - Submission to Account Officer 37
Post Check of accounts in the Accounts Office 16
Programme Implementation Unit (PIU) 2&9
Re-appropriation of Funds 19
Receipt Books 27 & 49
Receipt of Money 23
Receipt of Money - Account Procedure 23
Receipt of Money Disposal of Receipts 23
Receipts & Payments Account (PIU) 35 & 36
Receipts & Payments Accounts (SRRDA) 41
Reconstitution of Executive Charges 51
Records - Preservation of 51
Remittances to Accredited Bank 25
REPORTS to Government of India, World Bank and Asian Development Bank 52
Sanctions 19
Sanctions - Communication to Accounts Officer 18
Sectional Officer 9
Security Deposits 33
Special Office 9
Specialist Officer see Special Officer 9
State Rural Roads Development Agency 2
State-level Standing Committee 2
STORES 27
Sub-divisional Officer 9
TRANSFER ENTRIES 28
Transfer of Charge - Divisional Accountants 50
Transfer of Charge - Divisional and Sub-divisional Officers 50
Work 9
94
ALPHABETICAL INDEX OF FORMS
Name of Record PMGSY Form No. Relevant Page No.

Programme Fund
Form
Abstract of PIU-wise Outstanding Bank Authorisations PMGSY/IA/F-10C-ADM No Change 76
Annual Account of Receipts and Payments (PIU) PMGSY/F-1B (Annual) ADM No Change 61
Annual Account of Receipts and Payments (SRRDA) PMGSY/F-1A-ADM No Change 60

(Annual)- ADM
Balance Sheet Monthly/Annual (PIU) PMGSY/F-2B-ADM PMGSY/F-2B) 68
Balance Sheet Monthly/Annual (SRRDA) PMGSY/F-2A-ADM New 67
Balance Sheet Monthly/Consolidated (State) PMGSY/F-2-ADM New 66
Bank Authorisation Authority PMGSY/GEN/F-65 New 91
Bank Authorisation Utilisation and Reconciliation Statement PMGSY/SCH/F-52-ADM No change 84
Bank Remittance Reconciliation Statement PMGSY/SCH/F-52 (REM) No change 85

-ADM
Bill for Refund of Lapsed Deposit PMGSY/SS/F-51 No change 83
Cash Book of PIU PMGSY/IA/F-3A No Change 70
Cash Book of SRRDA PMGSY/IA/F-3 No Change 69
Divisional Officer’s Report Of Scrutiny Of Accounts PMGSY/GEN/F-60 89
GENERAL
General Ledger (Credit balances) PMGSY/IA/F-9 No Change 74
General Ledger (Debit balances) PMGSY/IA/F-8 No Change 74
Imprest Cash Book PMGSY/IA/F-4 No Change 71
Income and Expenditure Account (PIU) PMGSY/F-1(I&E-3) New 65
Income and Expenditure Account (SRRDA) PMGSY/F-1(I&E-2) New 64
Consolidated Income and Expenditure Account (State) PMGSY/F-1(I&E-1) New 63
List of Schedules to be Annexed with Balance Sheet of PIU PMGSY/SCH/F-56 No Change 88
Master Sheet of Accounts of All the PIUs PMGSY/F-1AA-ADM No Change 57
Master Sheet of Consolidated Balance Sheet of SRRDA PMGSY/F-1AAA-ADM No Change 58

and PIUs
Money Receipt Book PMGSY/IA/F-5 No Change 71
Monthly Account of Receipts and Payments (PIU.) PMGSY/F-1A-ADM No Change 55
Monthly Account of Receipts and Payments (SRRDA.) PMGSY/F-1-ADM No Change 53
Payment Voucher PMGSY/IA/F-6 No Change 72
95
PIU-wise Register of Cheques Issues PMGSY/IA/F-10D-ADM No Change 77
Register of Cheque/ Receipt Book PMGSY/SR/F-32 No Change 80
Register of Consumable Store As per Government Order 79
Register of Deposits Repayable PMGSY/SR/F-22 No Change 78
Register of Destruction of Records PMGSY/Gen/F-63 Form 97 89
Register of Divisional Accountant’s Audit Objections PMGSY/GEN/F-59 No Change 89
Register of Durable Assets PMGSY/SS/F-46 No change 82
Register of Funds Transferred by SRRDA to PIU PMGSY/IA/F-10-ADM No Change 75
Register of Government Sanctions Releasing PMGSY/SR/F-28 No Change 80

Register of Miscellaneous Advance PMGSY/SR/F-23 No Change 79
Register of Miscellaneous Recoveries PMGSY/SR/F-32A No Change 81
Register of PIU-wise Bank Authorisations Abstract PMGSY/IA/F-10A-ADM No Change 75
Register of PIU-Wise Bank Authorisations PMGSY/IA/F-10B-ADM No Change 76
Register of Remittances into the Bank PMGSY/IA/F-10E-ADM No Change 77
Register of S.T.D./Trunk Call Charges As per State 79

Government Order
Register of Travelling Expenses As per State 79

Government Order
Register of Unpaid Bills PMGSY/SS/F-45 No change 82
Requisition for Bank Authorisations for Central PMGSY/GEN/F-64A-ADM New 90

Administrative Expenses Funds
Requisition for Bank Authorisations for State PMGSY/GEN/F-64B-ADM New 90

Administrative Expenses Funds
Schedule of Administrative Expenses Fund PMGSY/SCH/F-52A-ADM Revised 86
Schedule of Cash Balance PMGSY/SCH/F-57 No Change 88
Schedule of Current Assets PMGSY/SCH/F-53E-ADM New 87
Schedule of Current Liabilities PMGSY/SCH/F-52D-ADM No change 87
Schedule of Deposits Repayable PMGSY/SCH/F-52C-ADM No change 87
Schedule of Durable Assets PMGSY/SCH/F-53F-ADM New 88
Schedule of Surplus Funds/Misc. Income PMGSY/SCH/F-52B-ADM No change 86
Transfer Entry Book PMGSY/IA/F-7 No Change 73
Transfer Entry Book for Bank Authorisation PMGSY/IA/F-7A No Change 73
Transfer Entry Order PMGSY/IA/F-17 No Change 78
96

Administrative Expenses Manual

Uploaded by

Copyright:

Available Formats

Administrative Expenses Manual

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Administrative Expenses Manual

Uploaded by

Copyright:

Available Formats

ACCOUNTS MANUAL

ADMINISTRATIVE EXPENSES FUND

National Rural Roads Development Agency

2 Opening Balance Sheet Opening Balance Sheet 6

3 Definitions Defines all the technical, finance and accounting terms 8

4 Outline of the Accounting Classification of PMGSY Funds 10

5. Relations with Post Check in the Accounts Offices 16

7 Cash and Stores Introductory 20

8 Transfer Entries General 28

9 Administrative Expenses General 30

10 Miscellaneous Advances Introductory 32

11 Deposits Repayable Introductory 33

12 Accounts of Divisional Introductory 34

14 Audit Statutory Audit 44

15 Miscellaneous Cheque Books 49

S. No. Name of Record PMGSY Form No. Relevant Progra- Page

1.2 HIERARCHY FOR THE EXECUTION OF PMGSY

(vii) On-Line Management & Monitoring System

1.3 FLOW OF FUNDS

1.4 ADMINISTRATIVE EXPENSES

Item Percentage of the approved cost

1.5 ACCOUNTING SYSTEM FOR THE ADMINISTRATIVE EXPENSES FUND

2.1 OPENING BALANCE SHEET

Balance Sheet of the PIU

Sl. Liabilities Amount Amount Sl. Assets Amount

4 Deposits Repayable (Sch. L4)

4.1 Classification of PMGSY Funds

4.2 CHART OF ACCOUNTS

CHART OF ACCOUNTS FOR PMGSY ADMINISTRATIVE EXPENSES FUNDS

S. No. Head of Account Credit / Major Account Entry To be

S. No. Head of Account Credit / Major Account Entry To be

S. No. Head of Account Credit / Major Account Entry To be

58.01 Laboratory Equipment Debit 58.01 SRRDA/PIU

58.02 Computers and Pheripherals Equipment Debit 58.02 SRRDA/PIU

59 Capital Expenditure from State Administrative 59

59.01 Purchase/renovation of Office Area Debit 59.01 SRRDA/PIU

59.02 Furniture and Furnishing of the office Debit 59.02 SRRDA/PIU

59.03 Vehicles Debit 59.03 SRRDA/PIU

59.04 Equipments & Machinery Debit 59.04 SRRDA/PIU

59.05 Computers & peripherals Debit 59.05 SRRDA/PIU

59.06 to Spare Numbers for Future Use

EXPLANATORY NOTES ON CHART OF ACCOUNTS FOR

56.01 to 56.06 These account codes are self – explanatory

5.2 DIVISIONAL ACCOUNTANT

5.3 INSPECTION BY THE AUDIT OFFICER/AUDITOR/ACCOUNTS OFFICERS/INTERNAL

5.4 COMMUNICATION OF SANCTIONS TO ACCOUNTS OFFICER

6.2 RE-APPROPRIATION OF FUNDS

6.3 WATCHING OF ACTUALS

7.2 MODES OF OBTAINING CASH

7.3 RECEIPT OF MONEY

II. DISPOSAL OF RECEIPTS

9.2 ACCOUNT PROCEDURE FOR EXPENSES

c) Interest income from the deposits in the bank.

9.3 LEDGER OF DEBIT BALANCES

9.4 LEDGER OF CREDIT BALANCES

9.5 SUSPENSE ACCOUNTS

9.6 LIABILITIES AWAITING INCORPORATION

9.7 EXPENDITURE ON INAUGURATION CEREMONIES

11.2 SECURITY DEPOSITS