Hand Account is such an account prepared manually. It is done in Upozilla and
District Accounts office where computerized Accounting System (iBAS) has
not been introduced. They record transaction on the basis of debit and
credit scrolls received from the bank (Bangladesh bank/Sonali bank) in
their prescribed register. They firstly account for the cash receipt and
cash payment. As per date they record the daily transaction and
consolidate it after the end of the month. In this case, the following
three things are done as per bank statement of the bank sent to the
accounts office.
According to the debit scrolls and credit scroll, they complete all the receipts and the payments in their receipts and payments register. They do it by consolidating the figure as per daily transaction according to economic codes and dates as shown in the debit and credit scrolls of the bank statement. Similarly, they record each and every transaction as per payments through authorities/cheques sent by the relevant accounts offices. This system is followed on the basis of debit and credit scrolls received from the bank. That is to say, this procedure is adopted in connection with the receipts through treasury chalan and issued cheques from the accounts offices.
In case of passing the bills, they keep compilation register where each and every transactions are recorded as per relevant offices under the Ministry. They record according to economic codes like pay, allowances, pension, supply and services, repairs and maintenances, purchases against non-current assets. After passing the bill, they consolidate the figures in the form of gross payments and net payments. Net payments are made after deductions from the gross payments. With Gross amount they prepare schedule and compile it by preparing schedules of all deductions. Of course, all the deductions are consolidated in a recovery register and after wards monthly accounts are prepared. In preparing monthly accounts the following procedure is followed.
Monthly accounts prepared by CAO :
There is no denying the fact that the the respective Ministry keeps budget under MTBF and accordingly submits bills to the respective CAO office in each month. The CAO Office passes the bill after proper verification and audit. The bill is processed in IBAS system where token number is automatically generated against respective ID of the officers and the DDOs. Afterwards, the cheque entry is completed in the system and ultimately cheque is issued. After completing the whole process in IBAS, monthly accounts is prepared and submitted to the CGA Accounts. Before doing so, reconciliation is done between the CAO Office and the Ministry and even any ambiguity is observed during the process of reconciliation, necessary correction is promulgated through adjustment of passing journal entries.
It may be pointed out here that no statement on future advanced payment is done by the CAO Office and as such the respective Ministry prepares budget and they can prepare the statement in the sense that how much needs to be paid in future 3 months. Only the statement of 3 months ahead of payment can be done by the Ministry office. It is clear that budget is estimated and substantiated by the Ministry on approval of MOF where advanced estimation is made by them not CAO Office. In case of projects of autonomous body, funds are released and accounted for in 3 installments on the basis of approval by the MOF and appraisal approval by the administrative Ministry. Also G.O of the administrative ministry may be essential in every cases of payment to be made by the CAO. But during the course of final payment, approval of the Finance ministry is inevitable.
Appropriation Accounts:
This refers to such accounts which is prepared by CAO on the basis of budget and expenditure made during one year. In every year, this sort of accounts is done by CAO with the approval of the relevant Secretary of the administrative ministry and sent to the CIVIL Audit for vetting. This is a vital document in respect of all receipts and expenditure of a ministry. Suffice it to say, The original budget is placed in the Parliament in the form of order for grants and Appropriation. The parliament sanctions the demand for Grants and Appropriation on the primary units of the Appropriations by economic code group relating to revenues and development for each ministry of division separately.
The following factors are important relevant to appropriation accounts of a financial year:
Supplementary grant: Where the original grant is not sufficient, additional budget may be provided for as Supplementary grant.
Appropriation: it is the assignment to meet the specific expenditure of funds as the disposal of the assigning authority.
Re-appropriation: it is defined as the transfer of funds from one unit of appropriation to another.
Revised estimate: it is the administrative arrangement by the Ministry of Finance in which in some specific cases, the original grant is reduced or enhanced as per request of the Line Ministry.
Appropriation account: the Appropriation account indicates the variation between actual expenditure incurred and the final grant. It also explains the reasons of variations.:
CAO’s responsibility:
It is the responsibility of the CAO Offices to :
The PAC will examine the reasons provided to evaluate:
- The daily total
- The monthly total
- The schedule which is compiled with the monthly accounts.
According to the debit scrolls and credit scroll, they complete all the receipts and the payments in their receipts and payments register. They do it by consolidating the figure as per daily transaction according to economic codes and dates as shown in the debit and credit scrolls of the bank statement. Similarly, they record each and every transaction as per payments through authorities/cheques sent by the relevant accounts offices. This system is followed on the basis of debit and credit scrolls received from the bank. That is to say, this procedure is adopted in connection with the receipts through treasury chalan and issued cheques from the accounts offices.
In case of passing the bills, they keep compilation register where each and every transactions are recorded as per relevant offices under the Ministry. They record according to economic codes like pay, allowances, pension, supply and services, repairs and maintenances, purchases against non-current assets. After passing the bill, they consolidate the figures in the form of gross payments and net payments. Net payments are made after deductions from the gross payments. With Gross amount they prepare schedule and compile it by preparing schedules of all deductions. Of course, all the deductions are consolidated in a recovery register and after wards monthly accounts are prepared. In preparing monthly accounts the following procedure is followed.
- All the receipts and payments are compiled together for the purpose of preparing schedules
- All the deductions are consolidated together in a separate schedule.
- All adjustments are done and taken into considerations carefully for the purpose of consolidating the figure of receipts and payments.
Monthly accounts prepared by CAO :
There is no denying the fact that the the respective Ministry keeps budget under MTBF and accordingly submits bills to the respective CAO office in each month. The CAO Office passes the bill after proper verification and audit. The bill is processed in IBAS system where token number is automatically generated against respective ID of the officers and the DDOs. Afterwards, the cheque entry is completed in the system and ultimately cheque is issued. After completing the whole process in IBAS, monthly accounts is prepared and submitted to the CGA Accounts. Before doing so, reconciliation is done between the CAO Office and the Ministry and even any ambiguity is observed during the process of reconciliation, necessary correction is promulgated through adjustment of passing journal entries.
It may be pointed out here that no statement on future advanced payment is done by the CAO Office and as such the respective Ministry prepares budget and they can prepare the statement in the sense that how much needs to be paid in future 3 months. Only the statement of 3 months ahead of payment can be done by the Ministry office. It is clear that budget is estimated and substantiated by the Ministry on approval of MOF where advanced estimation is made by them not CAO Office. In case of projects of autonomous body, funds are released and accounted for in 3 installments on the basis of approval by the MOF and appraisal approval by the administrative Ministry. Also G.O of the administrative ministry may be essential in every cases of payment to be made by the CAO. But during the course of final payment, approval of the Finance ministry is inevitable.
Appropriation Accounts:
This refers to such accounts which is prepared by CAO on the basis of budget and expenditure made during one year. In every year, this sort of accounts is done by CAO with the approval of the relevant Secretary of the administrative ministry and sent to the CIVIL Audit for vetting. This is a vital document in respect of all receipts and expenditure of a ministry. Suffice it to say, The original budget is placed in the Parliament in the form of order for grants and Appropriation. The parliament sanctions the demand for Grants and Appropriation on the primary units of the Appropriations by economic code group relating to revenues and development for each ministry of division separately.
The following factors are important relevant to appropriation accounts of a financial year:
Supplementary grant: Where the original grant is not sufficient, additional budget may be provided for as Supplementary grant.
Appropriation: it is the assignment to meet the specific expenditure of funds as the disposal of the assigning authority.
Re-appropriation: it is defined as the transfer of funds from one unit of appropriation to another.
Revised estimate: it is the administrative arrangement by the Ministry of Finance in which in some specific cases, the original grant is reduced or enhanced as per request of the Line Ministry.
Appropriation account: the Appropriation account indicates the variation between actual expenditure incurred and the final grant. It also explains the reasons of variations.:
CAO’s responsibility:
It is the responsibility of the CAO Offices to :
- Obtain acceptance for the figures from the PAO
- Obtain reasons for variation of items identified.
The PAC will examine the reasons provided to evaluate:
- Whether the variation is indispensable
- Whether the variation could have been foreseen
- The CAO should ensure that re-appropriations are prepared under the guidance of GFR rule 107.
The government account is prepared through the concept of commercial accounting procedure. All the revenues and all payment are included in government finance and appropriation accounts with which the budget of the government is prepared. A budget is the statement of revenues and expenditure for the next year. The complete transaction is carried out through the Integrated Budget and Accounting System.
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