Guidelines for Managing Drawal and Disbursement by DDOs: Ensuring Security and Compliance

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 debitableto 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, recovery @ 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