KERALA PANCHAYAT RAJ (ACCOUNTS) RULES 2011 AND ACCOUNTING PROCEDURES State Support Cell - Saankhya

State Support Cell - Saankhya Rule 3 Double Entry Based Accrual Accounting Rule 4 Books of Accounting Cash Book – Rule 5 Bank Book – Rule 6 Journal Book – Rule 7 Ledgers – Rule 8 & 9 Supporting Vouchers – Rule 10 State Support Cell - Saankhya

CASH BOOK-RULE-5 RECEIPTS-DEBIT SIDE PAYMENTS-CREDIT SIDE DAILY CLOSING CERTIFICATION CASH BOOK BALANCE+SUBSIDIARY CASH BOOK BALANCE=CHEST BALANCE State Support Cell - Saankhya

State Support Cell - Saankhya Rule 6 Bank Book Rule 7 Journal Book All entries which do not involve cash or Bank/Treasury accounts shall be recorded in the Journal Book Rule 8 General Ledger Rule 9 Sub Ledger State Support Cell - Saankhya

Rule 10 Vouchers Every financial transaction of the Panchayat shall be entered in a Voucher Receipt-Payment-Journal-Contra prepared by or under supervision of the Accountant shall be used as the covering sheet for all supporting documents State Support Cell - Saankhya

Corrections in Accounts Rule 11 Corrections in Accounts Any correction to an entry made in the books of accounts shall be authorised by the Secretary, and effected only through another rectification entry. A Journal Voucher shall be used to effect the same. State Support Cell - Saankhya

Books of accounts to be separately maintained for Funds Rule 13 Books of accounts to be separately maintained for Funds Panchayat Fund shall be the main fund and shall consist of income from all sources Within the Panchayat Fund, if necessary, the Government may prescribe Funds for which separate books of accounts have to be maintained. The Panchayat shall prepare Financial Statements for each Fund State Support Cell - Saankhya

Source wise Accounting of Funds Rule 15 Source wise Accounting of Funds All moneys received for specific purposes shall be kept in the designated accounts in the Treasury or Bank as the case may be. Any amount received for any specific purpose shall not be utlised for any other purpose All Receipts and Payments shall be accounted source wise. State Support Cell - Saankhya

Issue of Receipts for moneys received Rule 20 Issue of Receipts for moneys received All moneys received in the Panchayat be acknowledged by a Receipt denoting the nature of the instrument No copy of a Receipt shall be issued for whatever reasons. If any necessity arises for such a document a certificate of remittance may be issued. The form of receipts to be issued by the Ex officio Secretaries/Implementing Officers shall be different from the form of receipt issued by the Secretary State Support Cell - Saankhya

Dishonour of Cheques received Rule 22 Dishonour of Cheques received The Panchayat shall cancel the office copy of the Receipt The fact shall be intimated at once to the tenderer of the cheque The Accountant shall make reverse entries State Support Cell - Saankhya

State Support Cell - Saankhya Refunds – Rule 25 To the extent possible be adjusted against future Receipts Refunds, if any, shall be made by the Secretary after due authorisation by the President. Custody of Money - Rule 26 The Cash Balance of the Panchayat shall be deposited in a strong Cash Chest The Accountant shall maintain one of the keys and the other key shall be with the Secretary or the Officer entrusted with the handling of Cash. State Support Cell - Saankhya

Provision for Expenditure – Rule 28 A provision shall be made in respect of expenditure already incurred but not paid by the Panchayat Establishment accrual Claims pertaining to procurement of goods/services Contractors bill 30 days before the finalisation of accounts State Support Cell - Saankhya

State Support Cell - Saankhya Written claim of the claimant with supporting documents Bill preparation Primary verification of records such as budget provision , AS ,FS,TS Enter in prescribed records Sent to passing officer Cancellation of bills/invoices Approval of the passing officer with proceedings Autherisation of president State Support Cell - Saankhya

State Support Cell - Saankhya Prepare proper instrument Issue the instrument Collect the dated receipt Print the facing sheet (payment voucher) Tag the documents Keep them in safe custody State Support Cell - Saankhya

Deposit Register – Rule 33 Head wise pages Update with every transaction Reconcile it half-yearly Forfeit in time State Support Cell - Saankhya

Advance Register – Rule 32 Head wise pages Update with every transaction Reconcile it half yearly Recover advance in time with interest State Support Cell - Saankhya

Stop Payment Order to bank Non Payment Certificate from bank Lost Cheque – Rule 45 Stop Payment Order to bank Non Payment Certificate from bank Fresh Cheque State Support Cell - Saankhya

Stale Cheque Revalidation – Rule 46 Ensure the cheque is included in BRS as “uncashed cheque”. Receipt it under 350800101 - liablity in respect of stale cheques Contd…… State Support Cell - Saankhya

Stale Cheque Revalidation Prepare a payment order with account head 350800101 - liablity in respect of stale cheques. Issue a fresh / revalidated cheque. If fresh cheque, cancel the old cheque and keep it in file with new receipt. State Support Cell - Saankhya

Stale cheque forefeit Previous process up to receipt J V entry Cr - 280…. Prior Period Income Dr – 350800101 - liablity in respect of stale cheques State Support Cell - Saankhya

ROP - in the following year Collect it in the name of Secretary. Receipt it as cash under Prior Period Income – unutilised grant. Pay it as cash under Prior Period Expense - remit it to treasury in the consolidated fund+ROP State Support Cell - Saankhya

Reconciliation of Bank / Treasury Accounts – Rule 57 . Before 5th of the following month The Reconciliation Statement shall be attested by the Secretary. Period end Procedures – Rule 58 Daily Closing of Cash Book and Bank Book Physical verification of Cash Balance with Cash Book balance State Support Cell - Saankhya

State Support Cell - Saankhya Monthly Recording of expenditures incurred against permanent advance/imprest; Compilation of details of stock utilized during the month Closing of ledger accounts; Payment of Government dues; Reconciliation of Accounting records with the records relating to revenue and expenditure State Support Cell - Saankhya

State Support Cell - Saankhya Half Yearly Reconciliation of deposits, advances, receivables and incomes with Subsidiary Records and Registers; Transfer of specific grants received to grant income as well as contribution, based on its use during the period; Accrual of interest on borrowings; Recording of provision for bills remaining unpaid; Accrual of interest on advances and investment; Reconciliation of Capital Work in Progress account with Records and Registers; State Support Cell - Saankhya

Financial Statements, Annual Reports and Audit Yearly YEAR END PROCESS.ppt Financial Statements, Annual Reports and Audit Monthly statements of Receipts and Payments – Rule 60 Shall place before the Standing Committee for Finance before 10th of every month State Support Cell - Saankhya

Annual Financial Statements – Rule 62 Balance Sheet Income and Expenditure Statement Receipt and Payment Statement Cash flow Statement Notes on Accounts shall be submitted to the Auditor, on or before 15th May of the succeeding year. State Support Cell - Saankhya

Preparation of Budget – Rule 71 Estimate of revenue income; (b) Estimate of revenue expenditure; (c) Estimate of capital Receipts; (d) Estimate of capital expenditure; (e) Estimate of loans repayment; (f) Estimate of loan and advances; (g) Estimate of deposits and recoveries; (h) Estimate of investments; State Support Cell - Saankhya

Supplemental or revised budget – Rule 72 If expenditure, not provided for in the budget or in excess of the provision in the budget is to be incurred, a supplemental or a revised budget shall be passed by the Panchayat before incurring such expenditure In case of any expenditure, not provided in the budget was incurred in terms of the provisions of Section 214(6) of the Act, a supplemental or revised budget shall be presented and approved in the next immediate meeting of the Panchayat. State Support Cell - Saankhya

Budgetary Control of Expenditure Rule 73 Responsibility – Secretary, Implementing Officer Accountant State Support Cell - Saankhya

Cash and Accounts functions to be kept distinct – Rule 77 The Cash and Accounts functions of the Panchayat shall be kept distinct from each other under distinct officials who shall be termed ‘Cashier’ and ‘Accountant’ respectively State Support Cell - Saankhya

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