1. Day 2 – Session: 1 Session Title : Preparation of Finance Accounts and Appropriation Accounts – Preliminary Work. Difference between Finance Accounts and Appropriation Accounts. Structure of Finance Accounts.

2. Session Overview  In this session, we will discuss the preliminary work to be done for the preparation of Finance Accounts and Appropriation Accounts. Also the difference between both these Accounts will be enlightened. Finally, the structure of Finance Accounts will be talked about.

3. Learning Objective  By the end of the session, we will be enlightened with the preparatory work to be completed before the work of preparation of the Finance Accounts and Appropriation Accounts is taken up. We will be able to enumerate the main difference between these Annual Accounts. We will also be able to explain the structure of Finance Accounts.

4. Preparation of Appropriation Accounts & Finance Accounts – Preliminary work.

5. (i) Scrutiny of Re-appropriation/ Surrender orders. (ii) Skeleton Appropriation Accounts. (iii) Explanations for variations. (iv) Appropriation Accounts in the final form. (v) Advances from the Contingency Fund. (vi) Note on payment of Subsidy. (vii) New Service. Preliminary work. (MSO (A&E) – Vol. II

6. Difference between Finance Accounts & Appropriation Accounts.. Finance AccountsAppropriation Accounts Prepared Headwise (Major & Minor) across the Demands/Grants Prepared Demand wise/Grant wise (Up to sub-head level) Net figures of Expenditure are depicted. (Gross minus Recoveries) Gross figures of expenditure are taken. Recoveries are prepared in Appendix II of the Appropriation Accounts No comparison with Budget EstimatesPrepared after comparison with Budget Estimates

7. Structure of Finance Accounts Part-I Summarised Statements (St. Nos. 1 to 8) Part-II Detailed Accounts and other Statements (St. Nos. 9 to 19) and 8 appendices.

8. Part - I Summarised Statements (St. Nos. 1 to 8) (i) transactions of the year relating to the Consolidated Fund, Contingency Fund and Public Account. (ii) capital outlay. (iii) financial results of irrigation schemes. (iv) debt position of Government including expenditure incurred on the service of debt. (v) loans and advances by Government including recoveries in arrears. (vi) guarantees given by Government. (vii) cash balances and investments of cash balances. (viii) the balances outstanding in Government accounts at the end of the year grouped under Consolidated Fund, Contingency Fund and Public Account.

9. Part-II Detailed Accounts and other Statements (St. Nos. 9 to 19) (ix) The statements of Revenue and Expenditure under different heads expressed as a percentage of total Revenue/Expenditure. (x) Statement showing the distribution between the Charged and Voted expenditure. (xi) Detailed accounts of revenue by minor heads of accounts (xii) Detailed accounts of expenditure by minor heads. (xiii) Particulars of capital expenditure during and to end of the year.

10. Statements (St. Nos. 9 to 19) (contd..)  (xiv) Particulars of investments of the Government in the shares of Statutory Corporations, Government Companies, other Joint Stock Companies, Cooperative banks and Societies, etc. to the end of the year.  (xv) Statement showing capital and other expenditure (outside the Revenue Accounts) to the end of the year and the principal sources from which the funds were provided for the expenditure.

11. Statements (St. Nos. 9 to 19) (contd..) (xvi) Statement of receipts, disbursements and balances under heads of account relating to debt (including loans and advances) deposits, remittances and Contingency Fund, and Public Account. (xvii) Detailed statement of debt and other interest bearing obligations of Government. (xviii) Detailed statement of loans and advances made by Government. (xix) Particulars of earmarked balances relating to Reserve Funds, etc.

12. Eight Appendices I. Statement showing investments of Government and the Dividend/Interest received there from during the last 3 years. II. Statement showing items where acceptances of balances are awaited. III. Statement of commitments-list of incomplete capital works. IV. Details of assets created out of Grants-in-aid given to Local Bodies by the State Government. V. Expenditure on Salaries organized by minor heads, during the year. VI. Expenditure of Subsidies disbursed during the year. VII. Maturity profile of Internal debt of the State Government and loans and advances from Central Government. VIII. Changes in the Financial Assets of the Government.