1. Drawal/Disbursement by DDOs

2. Specimen signatures & other safeguards
Head of office to furnish specimen signature duly attested by another officer to PAO & branch of the paying branch of the bank
If authorizes subordinate to function as DDO, he should furnish that officials signature duly attested to PAO/bank
When handing over charge to another DDO, specimen signature of the new DDO to be furnished to PAO/Bank duly attested

3. Instructions for handling cash
Maintenance of cash book
Check of entries of cash book & sign below
Erasures/over writings strictly prohibited
Govt. money not to be mixed with non Govt. money
Physical verification of the cash & recording of PM balance sheet certificate
Counting & verification of non Govt. money (Out of account) also

4. Security of cash Cash chest/ Burglary Alarm/ Fire proof
Treasurer appointed should furnish security
Engagement of peons to fetch & carry cash should be discouraged

5. Non Govt. money/Accounts
To be kept separately
Register to be maintained to keep account
Cash to be verified daily at the close of the day
DDO top keep watch on prompt payments/ remittance of amounts to the concerned
Ensure that acknowledgements of amounts remitted are kept on record

6. Receipt of Govt. dues & remittances
Cash/cheque receipts should be transferred to bank on the day of receipt
Receipts of cheques to be issued as prescribed
Dishonored cheques may be returned to party
Necessary write back entries to be made in accounts
Date of receipt of cheque – as prescribed

7. Salaries
Due date for payment is last working day of the month except for March for which payment is made on first of April.
If last working day of a month is Bank closing day, then day previous to the Bank closing day is due date

8. Claim for a part of month
Permitted in cases of :-
Transfer involving change of account Circle
Govt. servant quitting service during the month
Transfer from or to a post outside the country

9. Remarks for omission of claim
If pay is not drawn for any reason, suitable remarks to be given against the names. If claim is omitted due to transfer, retirement , resignation etc., remarks to be given against the names, in the first bill where such omission occurs

10. Preparation of bills To be prepared in proper form
Separate bills for :-
Establishments whose charges are debitable to different heads
Where cheque payments are made
Multi tasking group C staff
Temporary establishment
Name of incumbent to be mentioned under each category & vacant post indicated
Leave/ transfer & adhoc arrangement remarks to be made
Other instructions printed in the bill to be followed

11. Drawal of increments
Increment certificate to be attached with pay bill
Though increments are sanctioned on First , this should be drawn if the official was on duty on that day

12. Drawal of Special pay & leave salary
Two persons can not draw Special pay against one post
Washing allowance / transport allowance/Conveyance allowance to be drawn as admissible. Certificates prescribed should be furnished
Leave salary to be drawn as per entitlement for various kinds of leave

13. Income tax
Till the finance bill for the year is passed, 1/12 of the total IT received last year should be recovered per month
Provisional calculation in July-August
Final calculation to be made before Pay bill for Feb. paid in March is submitted
Any tax due for the year after taking into account recoveries made up to January bill to be recovered & final IT calculation sheet attached for each official

14. Licence fee
To be received on the basis of demand statement received from Estate officer
One copy returned after noting recoveries
In case of general pool accommodation, recovery made as per standing demand, recovery schedule to be attached

15. Other recoveries
Recoveries for long term/short term advances & interest to be made
For recoveries ordered by PAO, separate schedule to be attached giving details & head of account

16. Absentee statement
To be attached whenever officiating arrangements are made in absence of regular incumbent
When post remains substantively vacant
If officiating arrangements are made against chain of vacancies, name of regular incumbents to be mentioned

17. Drawal of arrears Transferred officials:-
For earlier period, drawn by new office
Due & drawn statements to be sent to previous office for noting of remarks in Pay bill
On receipt of statement duly certified, arrear to be drawn by DDO of present office
This does not apply to DA arrears drawal. Service book to be consulted for periods effecting drawal An intimation to be sent to previous office

18. Drawal of arrears Time barred claims:-
Claims less than 2 years old can be preferred by DDO
Claims of more than 2 years to be only preferred after obtaining sanction of HOD
More than six years old cases can be preferred by DDO for pre check by PAO if records are available & there are valid reasons for delay
In other cases, Ministry’s sanction is necessary
Date of preferring claim is date of submission to PAO
If sanction issued from a retrospective date, period of 2/6 years counted from date of sanction

19. DISBURSEMENT

20. Responsibility
Head of the office is personally responsible for amount drawn until they are paid to the persons concerned under proper quittance
Officers not empowered to draw bills but entrusted with disbursements only are called Disbursing officers
Cheques should be encashed by the officers from the bank through authorized staff

21. Acquittance
Legal quittance to be obtained for monthly payments of allowances in the office copy of the bills including TA & other payments
Full sign. Of the payee with date to be obtained for each payment
Over revenue stamps for payments exceeding 5000/-
Payment through messenger is permissible if GS sends his formal acquittance & authority letter in favour of the messenger
If GS is unable to sign due to illness etc. , amount may be paid to family member nominated to receive the GPF amount

22. Register of undisbursed pay & allowances
Amounts drawn but remained undisbursed should be entered in this register at the close of the month
It should be tallied with the Bills & A rolls
Register to be reviewed by the DDOs
UD amounts normally kept for one month & in exceptional cases for three months
Thereafter to be refunded by short-drawal in the next bill
Such refunded amounts can be drawn again as arrear payemnts

23. Other dues
Recoveries of Cooperative societies & others should be made as per the demand statements
No recoveries permissible in case of dues to private parties/institutions
All outside deductions to be recorded in the separate register maintained for the purpose
Amounts remitted timely & acknowledgements kept on record

24. Disbursement of dues of deceased/missing officials
Dues of deceased persons to be paid to claimants as Life time arrears after obtaining the claim in the prescribed form
Payment of dues of missing persons permitted to be drawn after lodging FIR & obtaining Indemnity bond

25. Cheque books
Cheques to be obtained from PAO for three months requirements
Cheque books received should be carefully examined, leaves in each book counted physically & certificate recorded on the flyleaf
Accounting of cheques issued should be tallied daily with the account book
Loss of cheque book to be promptly intimated to bank/PAO
Cheques to be written in indelible ink. Corrections & alterations to be attested by DDO under full sign.

26. Period & validity of cheque
Valid for three months after the month of issue. e.g. Cheques issued in July can be encashed up to 31st October

27. Issue of fresh cheque for time barred
Time barred cheque received from the party to be cancelled by DDO
Cancelled cheque treated as voucher for issuing new cheque in lieu thereof
Amount of time barred cheque to be classified as minus credit
Fact of issuing & no. of new cheque to be noted on the counter foil of old cheque & in the relevant documents viz. schedule & register of cheques drawn

28. Cancellation of cheques
Before issue:-
Cheque to be cancelled & note recorded in the counter foil & documents
If cancellation becomes necessary when the cheque is withdrawn after issue, the cheque to be taken back & defaced. Note to be made on the counter foil & documents.
Minus entry in the register & schedule of cheques drawn be made

29. Cancellation of cheques
After issue:-
If not in DDO’s possession, it should be confirmed from the register & Bank debit scrolls that it has not been encashed & then intimation be sent to Bank to stop payment
If the currency of cheque has not expired , Bank’s acknowledgement to stop payment should be obtained

30. Lost cheques
If request for issue of fresh one is received within one year of date of cheque, send intimation to Bank by registered post to stop payment
If currency of cheque is not expired , Bank to send acknowledgement of intimation
Fresh cheque be obtained after obtaining indemnity bond from the party in form GAR-12
From Govt. departments, only a certificate need to be obtained. Bond is not required

31. Reconciliation of receipts & remittances
DDO will account for transactions as per Bank’s scrolls
Form of reconciliation
1. OB of unreconcilled amount …………………………..
2. Amount drawn/remitted during the month……………..
3. Total of 1& 2 …………………………
4. Amount acknowledged by Bank through scrolls…………….
5. Difference of 3 & 4 …………………………

32. THANK YOU