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

2. 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

3. CASH BOOK-RULE-5 RECEIPTS-DEBIT SIDE PAYMENTS-CREDIT SIDE
DAILY CLOSING
CERTIFICATION
CASH BOOK BALANCE+SUBSIDIARY CASH BOOK BALANCE=CHEST BALANCE
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4. 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
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5. 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
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6. 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.
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7. 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
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8. 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

9. 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

10. 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

11. 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

12. 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
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13. 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
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14. 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
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15. Deposit Register – Rule 33
Head wise pages
Update with every transaction
Reconcile it half-yearly
Forfeit in time
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16. Advance Register – Rule 32
Head wise pages
Update with every transaction
Reconcile it half yearly
Recover advance in time with interest
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17. 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
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18. Stale Cheque Revalidation – Rule 46
Ensure the cheque is included in BRS as “uncashed cheque”.
Receipt it under
liablity in respect of stale cheques
Contd……
State Support Cell - Saankhya

19. Stale Cheque Revalidation
Prepare a payment order with account head
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

20. Stale cheque forefeit Previous process up to receipt J V entry
Cr - 280…. Prior Period Income
Dr – liablity in respect of stale cheques
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21. 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

22. 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
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23. 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

24. 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;
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25. 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
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26. 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.
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27. 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;
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28. 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

29. Budgetary Control of Expenditure Rule 73
Responsibility –
Secretary,
Implementing Officer
Accountant
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30. 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

31. State Support Cell - Saankhya
Thank You
State Support Cell - Saankhya