Session – 1 Overview of Functioning of Treasury Regional Training Institute, Ranchi Structured Training Courseware on Treasury Inspection

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/2 January 2005 Learning Objectives  At the end of the session, participants will be able to explain the –Importance of Treasury –Its organisational setup –Its main functions

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/3 January 2005 Treasuries – An Introduction  Cash transactions of Government carried out through Treasuries –Collection, Disbursement and Accountal of Resources  District –One District Treasury –Sub-Treasuries, under District Treasury

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/4 January 2005 Types of Treasuries/ Sub-Treasuries  Banking Treasury –Cash receipt/ payment handled by bank branch, attached to treasury  Non-Banking Treasury –Handles both cash receipt/ payment, as well as accounting –Segregation of duties between cash handling and accounting

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/5 January 2005 Rendering of Accounts  Treasury renders account of receipts and payments to AG –Non-compiled Accounts –Booked under 8658-Suspense, 111- DAA  DAA cleared by AG Office Compilation –Net Accounting, except  Book Transfers for specified heads by Treasury  Gross Accounting for such heads

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/6 January 2005 Rendering of Accounts (Contd.)  Two accounts per month –1 st List –2 nd List  Sub-treasury accounts included in District Treasury Accounts  Computerised systems in Treasuries

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/7 January 2005 Cheque-Drawing Officers  Forest, PWD etc.  Attached to Treasury –Reconciliation with Treasury  Issue cheques, collect receipts  Letter of Credit System  Monthly Accounts directly to AG

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/8 January 2005 Drawing & Disbursing Officer (DDO)  Lowest Government unit for receipts/ payments  For payments –Submits bills to treasury  For receipts –Submits challans to treasury, with cash  DDO creation by Finance Department/ AG  Control on specimen signatures

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/9 January 2005 Importance of Treasury  Vital role in implementation of government policies and programmes –Backbone of State Government’s financial administration  Codes, manuals and procedures  Deviation from rules –Adverse impact on financial accountability  No authority to keep payment claim / deposit pending –Honour or object without delay

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/10 January 2005 Organisational Setup Collector Treasury Officer Assistant Treasury Officer Treasurer (Non-Banking Treasury) Accountant Supervisor

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/11 January 2005 Collector’s Role  Overall in-charge of Treasury and revenue administration  Personal responsibility for –proper accountal of receipts and payments, –maintenance of records, –submission of returns  Appointment of Treasury Officer does not absolve Collector of responsibility

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/12 January 2005 Collector’s Role (Contd.)  Periodical Examination –Every 3 months for cash and deposits –Every 6 months for opium –Every year for stamps, securities, drafts and cheques  During Examination –Actual stock corresponds to book balance, and is under lock and key –Deposit registers maintained properly  While taking/ handing over charge –Stock verification, intimation to Chief Secretary

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/13 January 2005 Treasury Officer and Staff  Appointed by Finance Department –Reports to Collector –Responsible for proper discharge of duties by himself and subordinate staff  Under Treasury Officer –Treasurer  Cash handling at Non-Banking Treasury –Accountant  Recording of cash transactions

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/14 January 2005 Accountant’s Role (Contd.)  Responsibility for –Compilation of accounts and returns –Ensuring compliance with all rules and orders –Highlight irregularities –Inspect accounts records of sub-treasuries

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/15 January 2005 Handling of Govt. Funds  All money received as –Government revenues (Consolidated Fund) –Deposit into Government Custody (Public Account)  Should be immediately deposited in the Treasury  Cannot be used to meet departmental expenses

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/16 January 2005 Withdrawal from Government’s Account  Withdrawals only under authority of –Treasury Officer (TO), or –Authorised officials of AG  Treasury Officer may permit withdrawals for –Payments due from Govt. to DDO –Funds to DDO to pay claims of  Govt. Servants  Private Parties –Direct payment to private parties

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/17 January 2005 Withdrawals (Contd.) –Investment of Public Account funds by authorised officials  TO should decline demands for –Unauthorised payments –Payments not as per rules  TO responsible to AG for –Acceptance of validity of claims paid –Evidence of receipt by payee

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/18 January 2005 Withdrawals (Contd.)  Payments only within district where claim arises, except pension  Urgent payments ordered by Collector to be reported to Finance Dept and AG  DDO’s Signature to be verified  Recoveries ordered by AG should be made by TO without delay

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/19 January 2005 Bills Presented by DDOs  In printed form  Duly signed, and corrections attested  Full accounting classification  Should only cover 1 Major Head  Sanction order enclosed

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/20 January 2005 Daily Accounts and Returns (Banking Treasury)  From Bank –Daily account of receipts and payments (daily scroll) with challans and vouchers –Passbook/ Register of receipts and payments  Forwarded daily to TO  TO will verify total daily receipts and payments, and sign

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/21 January 2005 Daily Accounts (Contd.)  TO Registers –Register of receipt challans issued –Register of orders for payment  Entries in bank scroll to be reconciled with TO registers, and discharge date entered

RTI Ranchi – Structured Courseware on Treasury Inspection – Slide 1/22 January 2005 Daily Posting  Individual receipts and payments to –Cash Book, or –Subsidiary Registers  Net Daily Receipts / Payments –To Register for Reserve Bank Deposits