CHAPTER: 9 Procedure of Departments whose Initial Accounts are compiled, in whole or in part, departmentally instead of at the Treasury

January 20, 2025

CHAPTER 9

Procedure of Departments whose Initial Accounts are compiled, in whole or in part, departmentally instead of at the Treasury

A. GENERAL

138. Receipts credited in lump and Payments made by cheques. We have now arrived at the point where a treasury has compiled the month’s transac- tions and has despatched the month’s accounts to the Account Officer. These treasury accounts are copies of the initial accounts, and on them are based the subsequent compilation in the Account office. It is obvious, however, that, unless these accounts contained sufficient details of the classification of the items by which the transactions enter into the general account, the compila- tion of these in the Account office will not be possible. Such information can be furnished by the treasury in respect of those transactions only for which details are given in the chalans which accompany the money for payment into the treasury or in the bill on which money is drawn from the treasury. But, as has been stated in paragraph 78, the receipts of some departments are paid into the treasury in lump and the payments for them are made by cheques, and the treasury is therefore not aware of the details of these transactions.

139. In respect of receipts of most of the civil departments, and of receipts under the Debt Deposit and Remittance heads, as well as all corres- ponding payments the detailed information is available at the treasury. Similar- ly, in respect of rents on account of Public Works Department buildings re- ceived by deduction from bills cashed at treasuries and payments made on bills drawn by officers of the Public Works and Forest Departments, the de- tailed information is made available to the treasury. In the accounts furnished by the treasury, these transactions are therefore entered in broadly classified detail, supported by vouchers which furnish such further information as is necessary for the compilation. But in respect of receipts and payments of the Defence, Railway and Posts and Telegraphs Departments, and of transactions other than those detailed above of the Public Works and Forest Departments as also of certain other departments, details are not made available to the treasury, and those transactions therefore appear in the treasury account in lump only, by departments, without any detail. In the case of these depart- ments the maintenance of separate initial and subsidiary accounts is therefore required. These initial and subsidiary accounts are prepared by the depart- ment concerned, and copies of them are rendered to the respective Account Officers in the same way as is done by the treasury. The present chapter describes the relations of these departments with the treasury and also the arrangements in each for the preparation of the initial accounts.

B. PUBLIC WORKS DEPARTMENT

(a) Constitution of the Department

140. Organisation. For purposes of Public Works Administration each State is generally divided into circles which are in charge of Superintending Engineers. Each circle is divided into divisions which are again sub-dividedinto sub-divisions. The divisions are in charge of Executive Engineers, and the sub-divisions are in charge of Assistant Executive Engineers or Upper sub- ordinates who are called Sub-divisional Officers. The Executive Engineers and Sub-divisional Officers are also called Divisional and District Engineers in some States.

The department as a whole is again generally divided into two branches,- Building and Roads and Irrigation, each branch in a State being generally in charge of a Chief Engineer who controls the Superintending Engineers.

(b) Relation with the Treasury

141. Payments. Disbursing officers of the Public Works Department ob- tain from the treasury in two ways the cash which they require for disburse- ment, either directly by bills drawn on the treasury or by means of cheques.

142. For the payment of pay and allowances of Government servants, bills are drawn on treasuries. In some States the funds to meet contingent charges are also obtained in the same manner. Such payments are brought to account in the treasury accounts in the same manner as similar payments for other civil departments, and do not enter the Public Works accounts which the Divisional Officers submit to the Account Officer.

143. All other disbursements are made by Divisional Officers by cheques drawn on treasuries with which they are placed in account by the Account Officer. A Divisional Officer may also empower his Sub-divisional Officers to draw cheques against his own account with a treasury. He keeps a Pass Book in which each cheque paid by the treasury is recorded by the Treasury Officer. The Pass Book is sent periodically to the treasury for completion. At the end of each month, the Treasury Officer furnishes a certificate to the Divi- sional Officer showing the total amount of cheques paid during the month against his account. The Divisional Officer checks the certificate and the Pass Book with his accounts, makes out of a list of cheques drawn but not cashed at the treasury and then submits the certificate with a list of uncashed cheques to the Account Officer in support of his accounts. The paid cheques are also sent to the Account Officer, twice a month, by the Treasury Officer, in support of the lump debits in the Lists of Payments.

144. Receipts. Receipts realised by the officers of the department are remitted as soon as possible in lump into the treasury. With each remittance a Remittance Book accompanied by the usual chalan is sent to the treasury and the treasury acknowledgment is recorded in this book. At the end of each month, the Treasury Officer furnishes the Divisional Officer with a consolidat- ed receipt for all remittances of the entire division during that month. The Divisional Officer submits this receipt to the Account Officer along with his accounts.

145. Divisional and Sub-Divisional Offices. The Public Works accounts unit is the “division”, and it includes one or more sub-divisions. To each divisional office is attached an Accountant, who is a subordinate of the AccountOfficer but is posted to the divisional office to check and compile the divisional accounts under the supervision and responsibility of the Divisional Officer.

(i) Sub-divisional Accounts

146. Funds. A Sub-divisional Officer is placed in funds in one of three ways:-

(a) by a fixed imprest or permanent advance which he can have re-

couped on depletion;

(b) by transfer of cash from the divisional chest;

147. He generally has a cash chest in which he places any departmental revenue received by him pending its remittance to the treasury, and also if he has drawing account with the treasury, all sums drawn on cheques which he is unable to disburse at once to the payees. If he is financed by a fixed im- prest or an advance from the Divisional Officer’s chest, he keeps the balance of the imprest advance in his cash chest. Payments are made only on properly prepared bills, in cash from the chest in the case of imprests or advances, or by cheques where there is a drawing account. Cheques are drawn by the Sub-divisional Officer usually in favour of the actual payees (contractors, etc.), but sometimes in favour of himself to replenish his chest when he has small payments to make.

148. Account Record. A Sub-divisional Officer’s principal account record

are-

Cash Book;

Muster Roll;

Measurement Book;

Works Abstract;

Registers of Receipts and Issues of Stock.

149. Cash Book. The Cash Book is the most important primary account record. On it the whole accounts of the sub-division are based and all other accounts and returns are subsidiary to it. All receipts and payments are posted into it daily. The sub-divisional Officer regularly examines and initials it and is personally responsible for its correctness. It is balanced at the end of the month and signed by the Sub-divisional Officer, who at the same time personally counts and certifies the cash balance.

150. Muster Roll. The Muster Roll, as its name denotes, is a nominal roll or list of labourers employed daily on works. There is generally a separate roll for each work. Payments on muster rolls are made and witnessed by the executive officer of the highest standing available on the spot, who actually counts the labourers, has the payments made in his presenos and attests the roll.151. Measurement Book. The Measurement Book is an initial account of the greatest importance in the Public Works Department. It is the basis of all accounts of quantities (and qualities) whether of work done by daily labour or by the piece or contract or of materials received. From the Mea- surement Book, or record of quantities (and qualities) made on the spot by personal measurement by the responsible executive officer, all bills for work (buildings and roads, bridges, canals, etc.), are prepared.

152. Works Abstract. The Works Abstract records in detail the cash, stock and other charges on each work whether carried out by departmental agency or contract. In the case of major works, and in other specified cases where specially required by the competent authority, it shows also the pro- gress of the quantities of work done. For manufacture operations, a Works Abstract is required for each operation, and in addition an account is kept of the quantities and values of the products of manufacture.

153. Stores Accounts. The Sub-divisional Officers keep simple register showing the quantities of stock received and issued each day. At the end of the month accounts are prepared showing the total quantity received and issued under each sub-head of stock account during the whole month. In these accounts the receipts are also classified according to the sources from which the stores are received and the issues according to the works to which they are issued.

154. Monthly Sub-divisional Accounts. The Monthly Sub-divisional ac- counts are prepared and sent to the divisional office as follows:-

The Cash Book and initial accounts of stores for a month are closed on the 25th or an earlier date prescribed by the Account Officer. On closing the Cash Book the Sub-divisional Officer counts the cash in his chest and submits a Cash Balance Report to the divisional office. Copies of the Cash Book supported by vouchers, are sent to the divisional office twice a month or oftener as directed by the Divisional Officer, the copy relating to the last period of an account month being submitted with the Cash Balance Report. Within 3 days of the closing of the account of the month the Sub-divisional Officer also submits the Works Abstracts and the month’s accounts of stock, etc. He does not, however, consolidate the transactions into a compiled monthly account, this work being done in the divisional office for entire division.

155. If the Sub-divisional Officer is financed by an imprest, the Divisionas Officer embodies the sub-divisional Cash Book in his own Cash Book; if, however, the Sub-divisional Officer has a drawing account on the treasury, or if cash is transferred to him from the divisional cash chest, his Cash Book is not embodied in the divisional Cash Book but the transactions are consoli- dated direct into the monthly accounts of the division.

(ii) Divisional Accounts

156. Account Records. As in the case of the Sub-divisional Officer, a Divisional Officer has a cash chest, a Cash Book, Measurement Books, and 6-2 Ccn pt. A.G./62also Muster Rolls for works which are directly under his charge, and Works Abstracts, and he uses them in the same way. The foregoing remarks under these heads apply equally to him. He has also store accounts, and in some cases manufacture and workshop accounts. He receives revenue and, in the same way as the Sub-divisional Officer does, makes payments for works, etc., on properly drawn bills, by cheques or, if the bills are for small amounts, in cash from his chest.

157. The main accounts which he keeps in addition to those kept in the sub-division are-

Contractor’s Ledger;

Transfer Entry Book.

158. Contractor’s Ledger. The Contractor’s Ledger is a running account with each contractor, showing the amounts due by him for advances made to him, and to him for work done by him, and is closed and balanced monthly.

159. Register of Works. The Register of Works contains a record of every important original work or repair showing the expenditure month by month compared with the estimate. In the case of major works, or in other cases where specially required by the competent authority, the expenditure is recorded by sub-heads of works, by which is meant items of work such as brick work, doors and windows, etc., which are specified in the sanctioned estimate. The object of such a record is to show the Divisional Officer the rates at which these different kinds of work are carried out and to enable him to obtain the necessary sanction.

160. Transfer Entry Book. The Transfer Entry Book contains a record of all transfer entries included in the accounts of the division, as for example, work done or payments made by other divisions, departments or Govern- ments, write-back of an erroneous debit or credit, etc. The book is posted as soon as the transactions become known from advices of debit, transfer entry orders, etc. In this book is also entered the credit on account of cheques drawn during the month.

161. Revenue Accounts. The main account records of revenue comprise the Registers of Revenue Realised and of Refunds of Revenue, in which all cash receipts or refunds, as the case may be, are entered under the different minor heads prescribed for the purpose.

162. Monthly Divisional Accounts. The cash and stock accounts of the divisional office for a month are closed on the last working day of the month. On closing the Cash Book, the Divisional Officer counts the cash in his chest and prepares a Cash Balance Report. The Cash Balance Reports for the entire division enable the Divisional Officer to certify the correctness of the cash balance of the division as given in his Monthly Account submitted to the Account Officer. The Transfer Entry Book is also closed as soon as possible after the expiry of the month. The cash, stock and transfer entrytransactions of the entire division are then posted in the relevant schedule dockets, registers and schedules which are abstracted in the Monthly Account submitted each month to the Account Officer between the 7th and 10th of the month following that to which it relates.

163. This account is accompanied by schedules (supported by vouchers), the more important of which are:-

(1) Stock Account prepared from the Sub-divisional Officers’ accounts of quantities of stock received and issued during the month after their valuation in the divisional office, and

(2) Schedules of Works Expenditure which are prepared from the sub-divisional Works Abstracts completed in the divisional office as regards stock and transfer entry transactions.

C. DEFENCE DEPARTMENT

(a) Relations with the Treasury

164. Cash Collections and Funds. Military receipts paid into a treasury have to be accompanied by an order for receipt signed by one of the responsible officers of the Department whose names are on an approved list. Funds are placed at the disposal of Military disbursing officers (other than Defence Ac- counts Officers) by annual assignment estimates in their favour issued to Trea- sury Officers by the Defence Accounts Officers. The probable requirements of each month are specified in these assignments, and it is an essential feature of the arrangement that the payments at any stage shall not exceed the pro- portionate provision to date made in the assignment. Drawings against the assignment are made by cheques which, as usual, are sent by the treasury to the Account Officer in support of the lump debits in the treasury List of Pay- ments. In case of emergent need, funds outside the annual assignments can also be obtained under special arrangements. Defence Accounts Officers are not placed in funds by assignments, but are authorised to draw cheques on any treasury or sub-treasury in India.

(b) Preparation of Initial Accounts

165. Organisation. The Army Administrative and Accounts unit is the “Command”. The accounts, internal check, and disbursements of one or more of these units are under an Accounts Officer called a “Controller of Defence Accounts” or a “Joint Controller of Defence Accounts”. The actual arrange- ment is as follows:-

Administrative Headquarters.

Accounts Headquarters

I. Southern Command, Poona

Poona

Controller of Defence Accounts, Southern Command, Poona.

II. Eastern Command, Lucknow

Lucknow

Control’er of Defence Accounts, Eastern Command Meerut. Bengal, Bihar, and Orissa area;

Controller of Defence Accounts, Patna.

III. Western Comman 1, Simla

Simla

Controller of Defence Accounts Western Command, Meerut.166. The Controllers of Defence Accounts function under the immediate contros of the Controller General of Defence Accounts and are responsible for the maintenance of the accounts for their respective areas. Each Con- troller acts as the Financial Adviser to the General Officer Commanding-in- Chief of the Command, as well as to the Area and Independent Sub-Area Com- mander unless a Joint Controller of Defence Accounts is posted for the purpose. These Controllers also assist the General Officer Commanding- in-Chief and the Area and Independent Sub-Area Commanders in the prepara- tion of all estimates, and furnish them regularly with such statistics relating to accounts as they may require for controlling expenditure against grants placed at their disposal. They are responsible for the preparation of the periodical accounts of their respective areas submitted to the Controller General of De- fence Accounts and the Comptroller and Auditor General. They are also responsible for the payment of bills and the consolidation of accounts in con- nection with the Military Engineer Services expenditure. The monthly pay accounts, etc., of the civilian establishment are prepared by the establishment of the units, etc. On receipt of claims in the office of the Controller, payments are made by the Controllers after a careful preliminary check subject to a detailed check conducted subsequently. In addition to the detailed check of accounts in his office, the Controller arranges for the periodical local audit and inspection of the cash and stores accounts maintained in units and forma- tions. The duties of a Controller combine the functions of a civil Treasury Officer and of an Accounts Officer of a State.

167. In addition to the Controllers of Defence Accounts specified in paragraph 165 above, who are mainly concerned with the stores accounts and the pay of civilians and Departmental units in their areas (excepting the Pay Accounts of Officers and other Ranks of the Army, Ordnance, and Clothing Factories, the Air Force and Naval Accounts), there are a Controller of De- fence Accounts (Air Forces), a Controller of Defence Accounts (Factories), a Controller of Defence Accounts (Navy), a Controller of Defence Accounts (Officers), a Controller of Defence Accounts (Other Ranks) and a Controller of Defence Accounts (Pensions), whose offices are located at Dehra Dun, Cal- cutta, Bombay, Poona, Mysore and Allahabad respectively. These Controllers deal with the accounts, disbursements, and internal check and compilation of accounts of their respective Services.

The Controller of Defence Accounts, Air Forces, Dehra Dun is responsible for making payments to Air Forces, the audit of all cash and store transactions and bringing to account all receipts and charges pertaining to the Air Forces. He is also responsible for the audit of Pay accounts of Air Force personnel. The accounts are maintained by service personnel on the “Individual Running Ledger Account System”.

The Controller of Defence Accounts (Factories) Calcutta is responsible for the disbursements to Factories and audit of all cash and store transactions and the preparation of the consolidated annual accounts of Ordnance, Leather and Clothing Factories in India. He is also responsible for the audit and comm- pilation of Railway charges and passages other than leave passage concessions.The Controller of Defence Accounts (Navy) Bombay is responsible for making payments to Indian Navy, audit of all cash and store transactions and for bringing to account all receipts and charges pertaining to the Indian Navy. He is also responsible for the audit of Pay accounts of Indian Naval person- nel. The accounts are maintained by service personnel on the Individual Run- ning Ledger Account System.

The Controller of Defence Accounts (Officers) Poona, is responsible for the maintenance of the pay accounts on the Individual Running Ledger Ac- count System of officers holding commission in the Indian Army and of Matron and Lady Nurses and for making payment to them as also their audit of the accounts.

The Controller of Defence Accounts (O.Rs.), Mysore is responsible for arranging for the maintenance of the pay accounts on the Individual Running Ledger Account system of Junior Commissioned Officers, other Ranks, Non- combatants (enrolled), etc. The ledgers are maintained by the staff of the Defence Accounts Department at Pay Accounts Office attached to Depots/ Centres. The audit of these ledgers is also arranged locally.

The Controller of Defence Accounts (Pensions), Allahabad, is responsible for the sanctions to pensions of Army Navy and Air Force personnel govern- ed by Military rules and of Army, Navy, Air Force and factory personnel governed by Civil Service Regulations. The audit of pension payments under Military rules and Civil Service Regulations is centralised in the office of the Controller of Defence Accounts (Pensions).

The work relating to the audit and compilation of various fund accounts is done by the officer-in-charge Hollerith Section, Meerut who functions under the control of the Controller of Defence Accounts Eastern Command, Meerut.

168. The accounts of the Army Factories are prepared locally by the Accounts Officers attached to the Factories. The annual Accounts of each factory are prepared by the Accounts Officer and transmitted to the Controller of Defence Accounts, Factories Calcutta for consolidation.

The Controller of Defence Accounts, Navy Bombay, is responsible for the maintenance of cost accounts relating to the Indian Naval Dockyard, Bom- bay, and for the distribution of wages of the labour working in the Dockyard.

169. The Controller General of Defence Accounts who is immediately subordinate to the Financial Adviser, Ministry of Finance (Defence), is the head of the Defence Accounts Department. To ensure the maintenance of the work of the Defence Accounts offices at a high standard of efficiency, the Controller General of Defence Accounts or the Deputy Controller General of Defence Accounts attached to his office, acting on his behalf, periodically visit the various Defence Accounts offices.169-A. One peculiar feature of the Defence Accounts is that they are maintained mechanically and not manually as in Civil Offices. For this pur- pose the Controllers of Defence Accounts codify the classification of different vouchers in the form of numbers and record this codified classification in slips known as ‘punching media’. These punching media form the basic documents which facilitate sorting, grouping into similar heads and the final detailed com- pilation of the Defence Accounts by the machines.

D. RAILWAY DEPARTMENT

I. RAILWAYS OPEN LINES

(a) Relations with the Treasury

170. Cash Collections and Funds. Each Railway station remits its cash collections daily to the Accounts Officer of the Railway at head quarters who makes consolidated payments into the headquarters Government treasury. At the end of each month a consolidated receipt is furnished by the treasury to the Accounts Officer. A few large stations pay their collections direct into the nearest treasury. Funds are obtained on cheques.

(b) Preparation of Initial Accounts

171. General. This part deals only with the initial accounting system in the Railways.

172. Receipts. On Railways, the revenue unit is the station in charge of a Station Master, who remits his cash collections daily to the Accounts Officer and sends his monthly accounts of receipts. Vouchers relating to foreign claims of Railways which are party to the Railway Clearing Account Office are sent with supporting lists to that office for adjustment.

173. Each station maintains two main Cash Books for coaching and goods traffic respectively. There are also a number of subsidiary registers in which are recorded the details of the collections under each head of traffic. Thus, under coaching, a separate account is maintained in respect of passengers, tickets, excess fares, parcels, luggage, horses, carriages and dogs, etc.; and, under goods, on account of both inward and outward consignments. Each of these accounts is again sub-divided into two parts according as the traffic is “local”, that is, beginning and terminating on the home Railway, or “foreign” that is, beginning or terminating on another Railway.

174. At the close of the month each Station Master prepares two cash accounts called balance sheets, one for coaching and the other for goods transactions. The entries for both receipts and payments (that is, remittances to the Accounts office) are taken from the Cash Books and subsidiary registers and are supported by vouchers and schedules. The closing balances represent the cash in hand or sums recoverable for which the Station Master is held accountable.

175. Payments. The Station Master makes no payments, nor indeed do any Railway Officers on open lines except in special cases. Payments are made by the Accounts Officers, after check of the bills, through the agency ofa staff of travelling pay clerks. The spending units are the various departments of the Railway, namely Managerial, Engineering, Traffic, Locomotive, etc., or the Divisions where the Divisional system has been introduced. After the bills are checked and paid, they are entered in the primary registers and books, from which the monthly accounts of the Railway are compiled.

176. The executive departments responsible for the maintenance and working of open lines of a Railway are not permitted (except in certain special instances) to make their own purchases of materials required by them in their operations. All such purchases are centralised in the Stores Department under the control of a Controller of Stores by whom issues of materials are made to executive departments as required. Initial documents connected therewith are submitted to the Accounts Officer, by whom the stores accounts are compiled, the controller of Stores maintaining numerical records of stock only.

II. RAILWAYS UNDER CONSTRUCTION

177. Organisation. For administrative purposes a railway line under con- struction is divided into a number of divisions, each being in charge of an Executive Engineer who is responsible for all the expenditure incurred in his division whether by himself or by his subordinates. As in the case of the Public Works Department, each railway division is divided into a number of sub-divisions which are in charge of Assistant Engineer or Upper Subordinates.

178. The procedure followed in accounting for the receipts and payments of a Railway under construction is generally similar to that described above in the section dealing with the Public Works Department. Similar records are maintained both by the Divisional Officer and his Sub-divisional Officers, and monthly accounts in similar form are rendered to the Accounts Officer.

E, POSTS AND TELEGRAPHS DEPARTMENT

I-POSTAL SECTION

(a) Relations with the Treasury

179. Cash Collections and Funds. Unlike most other departments Post Offices do not remit all their departmental receipts direct into treasuries, but are permitted to utilise their cash receipts for departmental purposes. They remit only the surplus cash to the treasury. The surplus cash collections are sent to the treasury along with the usual chalan.

Post Offices receive funds for their cash requirements from treasuries on presentation of simple receipts. At places where treasury business is con- ducted by the Bank, payments for amounts of not less than Rs. 250 on account of Postal transactions required to be made to firms and individuals are made by means of cheques drawn on the Bank. All payments are made against the letters of credit issued by the Director of Audit and Accounts or Deputy Director of Audit and Accounts, Posts and Telegraphs, concerned. The money receipts or the paid cheques support the debits in the treasury List of Payments.

All transactions both of drawings and payments are recorded in one Treasury Pass Book maintained in each Post Office. This Pass Book is sent to the treasury with all cash transactions, as they occur, and attested by theTreasury Officer. In the case of drawings by means of cheques, the Treasury Pass Book is not sent to the treasury at the time the entry is made, but it is sent only when the next cash transaction takes place. The entry for the cheque drawn is attested by the Treasury Officer only after the cheque is cashed. At the end of each month a consolidated treasury receipt for all payments into the treasury made during the month and also a consolidated Postal receipt (in duplicate) for all drawings from the treasury during the month are prepared by the Post Master with reference to the Treasury Pass Book and sent to the Treasury Officer who, after necessary verification, returns the former to the Post Master for submission to his Audit Officer (Director of Audit and Accounts or Deputy Director of Audit and Accounts, Posts and Telegraphs concerned) and retains the latter for transmission to his own Account Officer.

(b) Preparation of Initial Accounts

180. Organisation and Account Records. The account unit is the Head

Post Office, which incorporates in its accounts the transactions of the sub and

branch post offices under it. The primary accounts maintained by a Head

Post Office are:-

(1) The Treasurer’s Cash Book;

(2) The Head Office Summary;

(3) The Head Office Cash Book.

181. Treasurer’s Cash Book. In each Head Post Office one of the clerks is appointed Treasurer who receives and pays all money. In some of the larger Post Offices the treasury work is done by contractors who are also de- signated as “Treasurers”. All valuables are kept in a safe under double locks, the keys of one lock being held by the Post Master and those of the other by the Treasurer. All transactions of receipts and payments (including stamps) are entered in the Treasury’s Cash Book as they take place. At the close of the day the Cash Book is totalled and balanced and signed by the Post Maste, who at the same time verifies the cash balance.

182. Head Office Summary. This is a classified account of cash receipts and payments of the head office and is written up daily by the Treasurer, its daily balance agreeing with the daily balance of the Treasurer’s Cash Book. As each transaction of receipts and payment occurs it is entered, not only in the Cash Book, but also by an independent clerk, in subsidiary registers, such as Letter Postage Account, Register of Miscellaneous Receipts and Payments, Register of Cash Certificates, Money Orders and Savings Bank Journals, Re- gister of Treasury Transactions, etc. The daily totals of the subsidiary registers are taken into the Summary. In this respect the system is similar to that of a civil treasury (Chapter 8). In addition to the account items the Summary contains a memorandum of items kept out of account in the joint custody of the Post Master and the Treasurer, as for example, undisbursed pay and allow- ances, value-payable money orders remaining in hand etc. It is signed daily by both the Post Master and the Treasurer.

183. Head Office Cash Book. This is a classified record of the daily transactions, not only of the head office, but also of the sub and branch officesunder it. The entries are made daily by the Post Master from the head, sub and branch office summaries (the two latter prepared in the head office from the sub and branch office accounts), and progressive totals are struck from day to day. A daily balance sheet is also prepared to effect a reconciliation between the Head Office Cash Book and the Treasurer’s Cash Book.

184. Monthly Cash Account. On the first of each month a Cash Account is sent by each head office to the Deputy Accountant-General concerned. The entries are taken from the Head Office Cash Book and a statement is given at the foot of the account showing total drawings from and remittances to each treasury with which the head office (including its sub and branch offices) has transactions. The Cash Account is signed by the Post Master and is accom- panied by a Cash Balance Report in the prescribed form, as well as vouchers and schedules.

185. Other Returns. In addition to the monthly cash account and the cash balance report, the head office sends weekly or fortnightly, as the case may be, to the Deputy Accountant General concerned, journals of Money Order, Savings Bank and Cash Certificate transactions of its own and its sub and branch offices, supported by vouchers.

NOTE. With the integration of Postal Systems of the former Indian States and States Unions (except Kashmir State) with the Indian Posts and Telegraphs Depart- ment, Post Offices in these areas observe the procedure in paras 179-185 above with the exception of the Anchal Postal System of the Travancore-Cochin State which is managed by the State Government as agent of the Indian Posts and Tele- graphs Department. The receipts and expenditure of the Anchal Postal System are incorporated in the Budget of the Indian Posts and Telegraphs Department and any gain or loss on the working of the system will also accrue to or be met by that Department

186. Railway Mail Service. In the case of the Railway Mail Service the Account unit is the Head Record Office and the primary account maintained in that office is the Cash Book in which the transactions with the local Head Post Office are recorded. Cash Accounts are submitted twice in the month by each Head Record Clerk to the Account office, which incorporates the accounts in the Classified Abstract of the Head Post Office concerned.

II. TELEGRAPH SECTION

(a) Relations with the Treasury

187. Cash Collections and Funds. Officers in charge of Departmental Telegraph Offices (excepting certain selected ones) draw funds from, and remit their receipts to, the Local Post Offices. Disbursing officers of the selected Departmental Telegraph Offices and of the Telegraph Engineering Branch as well as General or District Manager of Telephone Districts and the Accounts officers stores and workshops, at Alipore, Jabalpore and Bombay obtain funds from treasuries by drawing money on cheques without letters of credit. The paid cheques support the debits in the treasury List of Payments. The dis- bursing officers who draw money from the treasury deposit their cash receipts also into the treasury. Cheques drawn by the disbursing officers are recorded in a Treasury Pass Book, whereas each remittance of cash receipts is entered in a Remittance Book and sent to the treasury accompanied by a chalan and is acknowledged by the treasury.For cheques drawn, the Treasury Pass Book duly completed for the month is sent to the Treasury Officer who issues a certificate of the total issues from the treasury on cheques drawn by the Telegraph Officers. For payments into the treasury, a consolidated Treasury Receipt for all remittances made during the month is prepared and sent to the Treasury Officer for signature.

(b) Preparation of Initial Accounts

188. Account Records. Separate accounts are maintained by each Telegraph Engineering Division and each officer-in-charge of a Departmental Telegraph Office. The former is responsible for all receipts realised and ex- penditure incurred in connection with the construction, maintenance and repair of telegraph lines and instruments within his jurisdiction; while the latter has to account for all receipts and disbursements of his own office.

189. The primary account record in the case of Telegraph Engineering Divisions, Telephone Districts and Departmental Telegraph Offices is the Cash Book which contains a complete record of the cash transactions as they take place. At the close of the month, a classified account called the “Account Current” in the case of the Telegraph Engineering Divisions or the “Primary Abstract of the Cash Book” in the case of the Departmental Telegraph is pre- pared and sent to the Deputy Accountant General, Posts and Telegraphs con- cerned, for audit and further compilations.

190. Stores Transactions. Main depots at Calcutta, Jabalpur, Bombay, Madras, New Delhi and Circle Offices as well as a Branch Stores Depot at Bangalore and a Divisional Depot at Srinagar maintain a very large stock of materials and instructions for the use of the department. Detailed ledgers for these stores are maintained by the Regional Accounts Office under the Chief Accounts Officer, Stores and workshops to which the depots render daily accounts of receipts and issues. Monthly adjustments are made in the Accounts Office debiting the proper account heads with the net value of store or freight charges incurred.

191. Works Accounts. In respect of construction the responsibilities of Divisional Engineers of Telegraphs are analogous with those of Divisional Officers of the Public Works Department. There is therefore, a similar pro- cedure in respect of Registers of Works, Muster Rolls, and Contractors Ledgers.

F. FOREST DEPARTMENT

(a) Relations with the Treasury

192. Cash Collections and Funds. The Forest Department does not use a pass book for treasury receipts or payments. Receipts are sent to the treasury with a chalan in duplicate; one copy is retained with the treasury while the other is returned as an acknowledgement. Funds are supplied to officers in the Forest Department by means of cheques drawn on civil treasuries with which the drawing officers may be placed in account by the Accountant Gene- ral. A consolidated receipt for the month’s remittances is furnished by the treasury to the Divisional Forest Officer. The debits in the List of Payments are as usual supported by the paid cheques.(b) Preparation of Initial Accounts

193. Organisation. As in the Public Works Department, the Forest ad- ministrative and accounts unit is the “division”, which includes one or more sub-divisions. The division is under the charge of a Divisional Officer, on whom rests the responsibility for the effective internal check and control of the accounts of the entire division, in respect of both revenue and expenditure.

194. The Conservator, who is in charge of a “circle” comprising a number of divisions, is responsible for exercising a strict control over the whole outlay for Conservancy and Works and for examining the charges on account of travelling allowance and contingencies.

195. Account Records. Like the Divisional Officer in the Public Works Department, each (Divisional and Sub-divisional) Forest Officer has a cash chest in which he keeps revenue not remitted to the treasury and money drawn from the treasury not paid away. The cash is counted by the Forest Officer himself on the last day of the month and a report is sent to the Account Officer.

196. The main divisional account record is the Cash Book, in which are recorded the daily transactions as they take place as well as the monthly total of the sub-divisional Cash Books received towards the end of the month.

In addition to his Cash Book the Divisional Officer maintains a Register of Cheques Drawn a Register of Works an Account of Stores and a Contrac- tor’s and Disbursers’ Ledger or running account with each departmental con- tractor and disburser.

197. Besides a copy of the monthly Register of Cheques Drawn the Divi- sional Officer renders to the Account Officer the following monthly accounts and such other accounts of revenue due and outstanding and of timber and other transactions as the Accountant-General may from time to time require-

(i) Cash Account;

(ii) Classified Abstract of Revenue and Expenditure;

(iii) Schedule of Remittances to the Treasury;

(iv) Schedule of transactions with other Governments;

(v) Abstract of Contractors’ and Disburser’s Ledger.

198. The Cash Account is a general account of the receipts and disburse- ment of the whole of the division and is compiled from the divisional Cash Book. In the Classified Abstract of Revenue and Expenditure all items of revenue and expenditure for the month are classified and arranged in accord- ance with the prescribed accounts classification, the entries being made in such detail as may be required by the Account Officer. The Schedule of Remit- tances is supported by the treasury receipts, and shows each item of remittance separately.

G. OTHER DEPARTMENTS

199. General Arrangements. There are certain other departments whose initial accounts are not fully compiled at the treasury, e.g., the Customs Depart- ment, the Mint etc. The relations of these departments with the treasury and the arrangements in each for the preparation of the initial accounts are describ- ed in the relevant local manuals.