SUBSIDIARY RULES PART II GENERAL ORGANISATION AND WORKING OF THE TREASURIES

January 20, 2025

38. Subject to any general or special orders of the Government the responsibilities of the several officers for the proper management and working of the treasuries will be as laid down in the following rules of this part.

SECTION I 
District Treasuries 

RESPONSIBILITIES OF THE DIRECTOR 

DIRECTOR: Duties and Power
(Rules: 39,40,42&63)
 
39. (a) The Director as the Head of the Department of Treasuries is responsible to the Government for the proper functioning of the Treasuries in the State. He shall inspect each district treasury at least once in a year(=12 Months), examine whether the rules relating to the custody of treasure are closely followed, whether the registers are in good order and kept up-to-date and generally whether the treasury is working satisfactorily and shall take such effective steps as are necessary to remedy the defects, if any, noticed by him. In the course of the inspection, he shall specifically examine and satisfy himself—

(i) that the actual stock of cash, opium, ganja, stamps and securities is kept under joint lock and key and corresponds with the book balance;

(ii) that the Treasurer does not hold a sum larger than is necessary for the convenient transaction of the Government business and this sum together with the value of stamps, opium, ganja and other valuable articles held under the orders of the Government in his sole custody, is not larger than the security given by him;
and
(iii) that the stock of draft, cheque, bill and similar forms are carefully kept under lock and key by the Treasury Officer and periodically tallied with the balance of such forms on the stock books.

NOTE 1.—

The word “Stamps” used in the above rule includes Match Excise Banderols.

NOTE 2.—

Officers inspecting stamps, opium, etc., should record certificates of verification in their own hand.

NOTE 3.—

Appendix 5 contains the detailed rules prescribed by the Government for the inspection of District Treasuries. The Director should see during his inspection of the treasury that the stock of stamps especially those of denominations for which there is no demand or only occasional demand, is not excessive. He should pass orders at the time of inspection regarding the disposal of any surplus stock of stamps.

(b)(1) Each district treasury will be inspected periodically by an Officer of the Indian Audit Department. 

(2) A brief report of such inspection will be drawn up and sent to the Director with a copy to the Treasury Officer. The report will be in two parts, the first part dealing with the observance of the rules regarding the custody of treasure, coinage, currency, remittance and public debt work as well as the maintenance of the Currency Chest Accounts and the second part dealing with other points. The Accountant General will also send a copy of the first part of the report to the Currency Officer, Reserve Bank of India, Madras. 

(3) The Treasury Officer shall send his replies on each part of the report in duplicate to the Director who shall pass such orders as he considers necessary and send a copy of his orders together with one copy of the reply received from the Treasury Officer to the Accountant General who will finally dispose of the report. The Treasury Officer shall also send a copy of his replies on the first part of the report of inspection to the Currency Officer, Madras. The Currency Officer will forward his copy of the report and of the Treasury Officer’s reply thereon  to the Accountant General indicating whether, so far as matters dealt with by the  Reserve Bank are concerned, the action taken is adequate or whether any further action is required. The Accountant General may again refer to the Director any matter brought to notice in the report in respect of which he considers that the action taken by the Treasury and the Director is inadequate. Points which cannot even then be settled and all important irregularities will be reported to the Government by the Accountant General.

(4) The Accountant General will include a summary of the general results of the inspections in his annual review of the working of treasuries submitted to the Government.
*NOTE—The Joint Director/Regional Deputy Directors as the case may be, are empowered to conduct the inspection of District Treasuries on behalf of the Director, once in every year and notes on such inspection shall be forwarded to Accountant General (A&E) through the Director of Treasuries. The Inspection reports in respect of District Treasuries and Sub Treasuries conducted by Accountant General’s Inspection Wing will be forwarded to the Director, who will retransmit reports to Joint Director/Regional Deputy Directors as the case may be for review and finalisation.
Treasury Irregularity
(Rules: 40,48)
 
40. When an irregularity committed by any Treasury is brought to the notice of the Director by the Accountant General, the Director shall make an investigation and pass such orders as he considers necessary except in cases where the Accountant General has finally disposed of the matter by awarding a “Treasury Irregularity” to the concerned Treasury Officer a copy of the orders passed by the Director should be sent to the Accountant General. 
NOTE.—
A list of cases in which the Accountant General usually awards “Treasury Irregularity” is given in Appendix 26. Part A of the Appendix contains a list of serious irregularities which require disciplinary action and Part B contains a list of ordinary irregularities which have the cumulative effect of judging the quality of work of the Officer-in-charge of the Treasury at the time of committing the irregularity.

41 When an Officer takes charge of the post of Director otherwise than temporarily, he shall obtain from the outgoing Director, a note prepared by the latter indicating his general impressions on the working of the Treasuries in the State with special reference to any important item of work to be attended to immediately as it comes to his knowledge.

42. The Director of Treasuries shall verify the cash balance (including the imprest balance and other anamath balances) in each District Treasury at least once in three months, without giving prior intimation about it to any member of the staff of the treasury. The fact of verification should be recorded in the relevant registers kept in the Treasury. A certificate of verification specifying the amount, should also be sent to the Accountant General and to Government in the Finance Department.
The verification shall be done by the Director of Treasuries in person. If he is unavoidably prevented from conducting the verification himself, he shall depute an officer in the Directorate, not below the rank of a District Treasury Officer** to verify the cash balance on his behalf.
NOTE.—
The Joint Director/Regional Deputy Directors as the case may be are also empowered to conduct surprise cash balance/imprest balance verification on behalf of the Director in respect of District Treasuries under their control once in three months in the case of Banking Treasuries and every month in the case of Non-Banking Treasuries. Also a certificate of verification specifying the amount may be forwarded to Accountant General (A&E) with copy to Directorate.

RESPONSIBILITIES OF THE TREASURY OFFICER 

District Treasury Officer: Duties and responsibilities
Rules: 44-48,50,61(i),64,74,4(2),(3)
 
Sub Treasury Officer : Duties and responsibilities
Rules: 44-48,50,52,57,58-61
 
44.The Treasury Officer is personally responsible for the due accounting of all moneys received into and paid out of Government account, for the thorough observance of all rules prescribed for his guidance in every branch of his duties, for strict attention to all details of the daily routine of the treasury work, for the correctness of the prescribed accounts and returns and punctuality of their submission for the implicit obedience to the instructions issued by the Accountant General, the Currency Officer, the Director or any other competent authority, for the security of the cash balance, stamps, opium and other Government property and for the conduct of the subordinate treasury officials. For the custody of cash balance, stamps, opium, ganja and other valuables, the Treasury Officer is jointly responsible with the Treasurer. The fact that a subordinate has been required under these rules or under special orders of the Government to attend to certain items of Treasury work shall in no way relieve the Treasury Officer of his responsibilities.
The Treasury Officer is responsible for keeping the accounts of the Treasury strictly in accordance with the directions contained in the Kerala Account Code, for the accuracy of all initial records and vouchers and for regularity of all transactions taking place at the treasury.

NOTE.—An officer holding independent charge of a district treasury in the course of a prescribed training (vide Appendix 4) will be personally responsible for discharging the duties and responsibilities of the Treasury Officer. However, it shall in no way, relieve the regular Treasury Officer of his responsibilities and he should closely watch the work of the Officer on training and give him proper guidance in all items of work.

  1. 45. The District Treasury Officershall send immediatepreliminary report to the Accountant General, the Director of Treasuries and the Government, of any defalcation or loss of money, stamps or opium and other property discovered in the treasury or any sub treasury even when such loss has been made good by the person responsible for it. Such preliminary report shall be supplemented as soon as possible afterwards by a detailed report, after personal investigation into the case. In dealing with cases of defalcations or losses as aforesaid and in reporting such cases to the Accountant General and other authorities, the District Treasury Officer shall be guided by such general orders or instructions as may be issued in this behalf by the Government. Petty cases, that is, cases involving losses not exceeding ` 300 each need not be reported to Accountant General unless there are, in any case important features which merit detailed investigation and consideration.

46 (1) The Treasury Officer shall satisfy himself by periodical examinations at convenient intervals that the actual stock of cash (coins and notes), stamps, opium, ganja and other valuables (including cash chests and sealed boxes and packets deposited for safe custody under Rule 157) which are put under double locks, the actual stock of the forms of drafts, cheque, pass books, cash orders, etc., and the documents pertaining to the securities of the treasury staff which are kept in his personal custody and the actual stock of saleable forms and other valuables held in the treasury under the orders of the government either under double locks or under single locks in the sole charge of the Chief Treasurer, correspond with the book balances. Such verification should invariably be done whenever there is a change of charge and also periodically as under:

Cash (coins and notes)     ➤ : Once in every month
Stamps, opium, ganja other valuables ➤:  Once in every six months and
Cash (coins and notes) Once in every month
Stamps, opium, ganja other valuables Once in every six months

(2) The Treasury Officer shall examine the deposit registers himself at least once a quarter and ensure that they are kept in accordance with the rules prescribed for the purpose in the Kerala Account Code or elsewhere and furnish the certificate prescribed in Article 124 of the Kerala Account Code, Volume II.

NOTE.—
For this purpose the Assistant Treasury Officer of each District Treasury (and one of the Assistant Treasury Officers, if there are more than one Assistant Treasury Officer in any District Treasury) should be in charge of the maintenance of the Deposit Registers and the District Treasury Officer should conduct the Quarterly Examination. The Assistant Treasury Officer shall verify and attest every entry including the totals of daily transactions in the Deposit Accounts. He shall be responsible to the District Treasury Officer for the correctness of the postings and totals and also for the preparation and timely dispatch of monthly extracts and other periodical returns pertaining to Deposit due to the Accountant General. He shall also be responsible to the District Treasury Officer for rendering weekly or other periodical statements due to the courts for filling up the pass books and for the reconciliation of the Administrator’s figures with the treasury figures.
47. The Treasury Officer shall verify the District Treasury balance (which term includes besides the Treasury balance the balance in the Currency Chest of the Reserve Bank of India, if any, held in the treasury, the balance in the small coin depot, if any, attached to the Treasury and the balance of any imprest amount held by the Treasury Officer) in person on the first of each month and sign the account to be rendered to the Accountant General and the Government in the Finance Department.
When, however, he is absent on tour on the first of the month, or when he is unable to perform the duties from physical inability, the duties may be entrusted to the officer discharging his duties in the district treasury in his absence. The reason for his inability to sign the accounts must be distinctly noted in the returns and accounts. In such cases, the Treasury Officer should verify the balance and satisfy himself as to the correctness of the monthly accounts immediately on his return to office and record that fact in the office copies of the accounts and returns. In no case should a Treasury Officer allow more than two consecutive months to pass without his verifying the monthly closing balance and signing the accounts.
48. When a Treasury irregularity is brought to the notice of the Treasury Officer by the Accountant General, the Treasury Officer shall make a personal investigation and his report shall be based on his own knowledge and the results of the investigation.

49 The special precautions to be observed by the Treasury Officer in matters relating to receipt, custody and payment of Government money are specified in other relevant parts of these rules.

50. The Treasury Officer shall see—
(a) that a notice is posted up conspicuouslyവ്യക്തമായി in the Office of the hour at which the treasury closes for the receipt and payment of money, which shall be at least an hour before the end of the day’s work in order to allow time for closing and reconciling ശരിയാക്കുക the accounts; and
(b) that notices which he is required to exhibit under standing orders or instructions received from time to time such as those regarding the encashment of notes and the supply of small coins are exhibited conspicuously in places which the public enter freely.

RESPONSIBILITIES OF THE CHIEF TREASURER 

Chief Treasurer : Duties and responsibilities
Rules: 51,69,85
 
51. The Chief Treasurer is responsible for the handling of the money at the treasury. The Treasurers or Nottams working in the district treasury are responsible for the handling of the money entrusted to them by the Chief Treasurer.
VERIFICATION OF TREASURY BALANCE WHEN THERE IS A
 CHANGE OF TREASURY OFFICER OR CHIEF TREASURER 
 
52. (a) Whenever the Treasury Officer hands over charge otherwise than temporarily, the relieving government servant shall, before taking charge, verify the cash balance in the district treasury in the manner prescribed in Rule 144 of part IV of these rules and report the result of his verification to the Accountant General with a certificate in Form T.R.1. 
He shall also obtain from the outgoing Treasury Officer a note prepared by him regarding the state of affairs in the district treasury. Whenever the Chief Treasurer hands over charge, otherwise than temporarily, the cash balance shall be similarly verified and the result of the verification recorded in the Treasurer’s Balance Sheet.
(b) A government servant who holds charge of a district treasury during a short temporary absence of the Treasury Officer, e.g., on casual leave, shall be held responsible for the correctness of the balances in any double-lock receptacle which is opened whilst he is in charge, until it is duly verified and taken over by the permanent Treasury Officer. He should, therefore, verify the contents of any double-lock receptacle which is opened whilst he is in charge. The permanent Treasury Officer should verify, on his return, the contents of all double-lock receptacles which have been opened during his absence.
  (c) If, on any occasion, the Treasury Officer or the Chief Treasurer is so ill that he is unable to go in person to the treasury to hand over charge of the treasury keys to the government servant duly authorised to take charge of the duties of his post from him, the relieving government servant shall go to the government servant who is to be relieved and take over the keys in person. The relieving government servant shall then verify the balance under double-locks in the presence of the other double lock officer and record a certificate of verification and the fact of the illness of the relieved government servant in the registers concerned.

RESPONSIBILITIES OF THE SECTION HEADS
IN THE ACCOUNTS DEPARTMENT

Section Head : Duties and responsibilities
Rules: 53,54
 
53. Each Section Head is responsible under the order of the Treasury Officer for keeping complete records of cash and book transactions of district and subordinate treasuries and for the compilation of the prescribed accounts and returns strictly in accordance with the directions and orders in force. He is also required to see that the rules and orders in force are observed in respect of all transactions of the treasury and to bring all cases of irregularity to the notice of the Treasury Officer.

54. Each Section Head may be required to inspect under the orders of the Treasury Officer, the account records of sub treasuries and to check a percentage of the initial accounts.

55. The Section Head’s department and treasurer’s department should be in different rooms, if possible. No person unconnected with the treasury should be allowed admission on any pretence into either the room housing the department of account or the Treasurer’s room beyond the bar or counter.

Sub Treasuries 

56. Location of sub treasuries:—There shall ordinarily be a sub treasury at the headquarters of every taluk. If there is a district treasury at the taluk headquarters the Government may do away with the establishment of sub treasury at the station.

57.The sub treasury is in the general charge of a Sub Treasury Officer.
58. The duties and responsibilities laid on the Treasury Officer in Rules 44 to 50 and 52 shall apply mutatis mutandis =മ്യൂറ്റാറ്റീസ് മ്യൂറ്റാന്‍ഡിസ്   യോജിച്ച മാറ്റങ്ങളോടെ to Sub Treasury Officer also. But the reports and certificates in respect of verification of cash and other valuables etc., and the accounts are to be sent by the Sub Treasury Officers to the District Treasury Officers and not to Accountant General and the Finance Department unless specifically directed otherwise.
mutatis mutandis ആവശ്യമായ എല്ലാ മാറ്റങ്ങളും വരുത്തി’ അല്ലെങ്കിൽ ‘ആവശ്യമായ മാറ്റങ്ങളോടെ’ എന്ന് വിവർത്തനം ചെയ്യുന്നു. വ്യത്യസ്ത സാഹചര്യങ്ങൾ കണക്കിലെടുക്കുന്നതിന് ചില മാറ്റങ്ങൾ വരുത്തേണ്ടിവരുമെങ്കിലും പ്രധാന കാര്യം അതേപടി തുടരുന്നുവെന്ന് മ്യൂറ്റാറ്റീസ് മ്യൂറ്റാന്‍ഡിസ് എന്ന വാചകം സൂചിപ്പിക്കുന്നു.

59. The Sub Treasury Officer shall attend to the day to day administration of the sub treasury in accordance with the treasury rules and the instructions issued by the Government, the Accountant General, the Director and the Treasury Officer.

60. The Sub Treasury Officers shall verify the cash balance in the sub treasury at least twice a month. If he remains at headquarters for a period of seven days or more at a time, he shall prove the balance in the sub treasury once in every seven days during that period. He shall also ordinarily verify the cash balance and the stock of stamps whenever he leaves or arrives at headquarters and submit a report to the District Treasury Officer.

When there is a change of incumbent of a post which carries with it the charge of a sub treasury, the new incumbent shall verify the cash balance and the stock of stamps and submit a report to the District Treasury Officer.

Explanation.—The scope of the term ‘proving’ is explained in Note 1 under Rule 152 (iii) in Part IV.

  1. 61.The monthly closing balance of the sub treasury should be verified and the result reported to the District Treasury Officeron the last day of the month by the Sub Treasury Officer. The Sub Treasury Officer shall arrange to be at the headquarters and to be present in the office on the last day of every month.

If he is unavoidably prevented from being present in the office on the last day of the month, a special report should be submitted to the District Treasury Officer explaining the circumstances which rendered it impossible for him to verify the monthly closing balance.

In that case the verification shall be done and the result shall be reported to the District Treasury Officer by the Officer entrusted to discharge the other duties of the Sub Treasury Officer for that day. In no case should a Sub Treasury Officer allow more than two consecutive months to pass without his verifying the monthly closing balance.
(i) Non-Banking Treasuries.—The District Treasury Officer shall verify the cash balance (which term includes besides the treasury balance, the balance in the Currency Chest of the Reserve Bank of India, if any, held in the sub treasury, and the balance in the small coins depot, if any, attached to the sub treasury) in the non-banking sub treasuries in his district once in a month. Such verification shall be made by the District Treasury Officer himself, without prior notice. If owing to unavoidable circumstances, the District Treasury Officer is prevented from conducting the verification himself in any month, he may authorise his senior Assistant Treasury Officer to conduct the verification for that particular month.

But he should not allow more than two months to pass without his verifying the cash balance of a non-banking sub treasury in his jurisdiction. The fact of verification should be certified in the treasury’s daily balance sheet and also in such other register maintained to account for the cash kept in the treasury. A report of verification shall also be sent to the Director of Treasuries on the date of verification. Verification statement in respect of currency chest balance, if any, should be sent to the Currency Officer, Reserve Bank of India as stipulated in rule 153(iii) of these Rules.

(ii) Banking Treasuries.—The District Treasury Officer shall verify the cash balance (including imprest balance and other anamath balances) in the banking sub treasuries in his district once in three months.
 
Such verification shall be made without giving prior notice. If owing to unavoidable circumstances, the District Treasury Officer is prevented from conducting the verification himself in any occasion, he shall authorise his senior Assistant Treasury Officer to conduct the verification on his behalf for that particular occasion. But in such cases, the next verification of this particular sub treasury should be conducted by the District Treasury Officer himself. The fact of verification should be certified in the relevant registers kept in the Treasury and a report of verification should be sent to the Director of Treasuries on the very date of verification.

OTHER EMPLOYEES OF THE SUB TREASURY 

 

62. The duties of the Treasurers, Nottams and Section Heads in the Accounts Department of the district treasuries prescribed in Rules 51 to 55 above shall apply mutatis mutandis to the Treasurers, Nottams and the Head Accountants of the sub treasury.

INSPECTION OF SUB TREASURIES 

 

63. (a) The Director shall arrange for the inspection of the sub treasuries by * an officer in the Directorate not lower in rank than that of a District Treasury Officer at least once in two years. He shall examine the sub treasuries himself as far as possible during his tours.
(b) The Director shall also arrange for a further detailed verification of the accounts and records pertaining to the Treasury Savings Bank transactions of all the sub-treasuries once in a year by an officer not lower in rank than that of a Sub Treasury Officer.
(c) The Joint Director/Regional Deputy Directors as the case may be are also empowered for the inspection of Sub Treasuries under their jurisdiction once in every two years on behalf of the Director, and dispose  the notes at their level except in major irregularities in which case the matter to be brought to the notice of the Director of Treasuries.
64. The District Treasury Officer shall conduct inspection of all the sub treasuries in the district at least once in a year, without notice. 
65. Sub treasuries will be inspected by an officer of the Indian Audit Department, if circumstances render it necessary.

NOTE.—Appendix 5 contains the detailed rules prescribed by the government for the inspection of sub treasuries. The Director or other inspecting government servant should see during his inspection of a sub treasury that the stock of stamps, especially those of denominations for which there is no demand or only occasional demand, is not excessive. He should pass orders at the time of inspection regarding the disposal of any surplus stock of stamps.

BANKS CONDUCTING TREASURY BUSINESS 

 

66. If a treasury or sub treasury is located at a place where there is a branch of the State Bank of India or its subsidiary, the government may declare that the cash business of that treasury or sub treasury will be transacted through the bank.

NOTE.—A list of treasuries and sub treasuries in the State is given in Appendix 2.

67. A branch of the State Bank which conducts treasury business should be kept open for the transaction of that business on a recognized holiday if the District Treasury Officer requests the Agent to keep it open for that purpose.

68 If the Agent / Manager of a branch of the State Bank of India or any of its subsidiaries which conducts treasury business dies or becomes incapacitated for duty and it is not possible for the bank or its subsidiary to make immediate arrangements for the transactions of business at the branch, the government official named hereafter, should, provided the concerned bank has by prior arrangement be requested that he should do so at once—

(a) visit the bank in person, take over the keys of the strong room and other receptacles of treasure, notes or books and ensure that the strong room is properly secured and direct the guard to report to him;

(b) give telegraph information as the occurrence to the Local Head Office/Head Office of the concerned bank; and

(c) arrange for the due transaction of urgent treasury business at the bank. The responsibility for performing the functions herein stipulated should, in the first instance, be primarily that of:—

(i) the Collectors at district headquarters.
(ii) the Revenue Divisional Officers at the headquarters of the Revenue Division, and
(iii) the Tahsildars of the respective taluks at other places.

The concerned government official should, on no account, take any action in regard to the bank’s private business, which together with the ordinary treasury business which is not of an urgent nature should remain in abeyance till a responsible official of the concerned bank takes charge of the branch.

When it is impossible for the concerned government official to take the action mentioned above in person, e.g. on account of absence in camp, he may delegate his functions in this connection to any other government official not below the rank of a confirmed Sub Treasury Officer, who is within easy reach of the branch of the bank. He should nominate such government official for this purpose specially on each occasion when the necessity arises.
Neither the government nor any government servant will incur any sort of responsibility either to the State Bank of India or to its subsidiaries or to any third party by reason of anything done bona fide under this rule. The Government Official concerned would however, be responsible for the safe keeping, as a bailee, of the keys of the strong room, etc., taken over by him and the accounting for the cash and other contents which he takes out from the strong room.
SECTION II 

TREASURY ACCOUNTS
TREASURER’S RECORDS 

 
69 The Treasury shall maintain a simple cash book (without subordinate registers), in which each receipt and payment shall be posted at the time and on the date on which they actually occur and in the order of occurrence. The Treasurer shall sign and immediately return to the concerned Section Head in the Department of Accounts (after the necessary entry in his accounts) all receipts for money received. He shall stamp all payment vouchers “Paid” and retain them for delivery to the Accounts Department when the books are compared.
  1. When stamps or opium have been sold, the total sales shall be entered before the cash book is closed, and a memorandum should be prepared and forwarded to the concerned Section Head in the Department of Accounts, so that the necessary entry may be made in the accounts.

BOOKS OF THE DEPARTMENT OF ACCOUNTS 

  1. The form and procedure with regard to the initial accounts kept in the treasury and the methods and principles in accordance with which the accounts are kept, are governed by the directions contained inthe Kerala Account Code, Vol. II. It is the duty of the Treasury Officer to satisfy himself that those directions are strictly observed, that the accounts are correct in all respects and that the record of receipts and payments is so clear, explicit and self-contained as to be producible if necessary as satisfactory and convincing evidence of facts.

NOTE.—

A complete record of cash transactions and book transfer relating to the district treasury, including those to sub treasuries within its jurisdiction, will be kept in the Accountant’s Day Book. Every item received or paid as well as all adjustments by transfer should be entered in the Day Book or in some register subsidiary to the Day Book in accordance with the directions contained in the Kerala Account Code, Vol. II. The daily total from cash subsidiary register should pass into the Day Book.

  1. 72. The Treasury Officer shall prohibit any erasures or over-writings in the Day Book and other registers of initial record or in any account or schedule and verify and initial every correction in them.
  2. 73. The provisions contained in rules 69 to 72 and rules 75 shall apply mutatis mutandis to the sub treasuries also. The daily account of sub treasuries are incorporated in the accounts of the district treasuries in accordance with the direction contained in the Kerala Account Code, Volume II. It is the duty of the Treasury Officer to scrutinise and examine every item of receipts and payments shown in the daily accounts and point out, and watch against all irregularities in the same way as those at the district treasury. He shall examine and regulate the procedure of sub treasuries, as far as he can from the daily examination of their accounts.

NOTE.—

If the Treasury Officer, owing to the volume of sub treasury transactions finds it difficult to scrutinise each and every sub treasury voucher, he may at his direction leave over the work to the Assistant Treasury Officer and/or the Section Heads of the Accounts Department, a percentage check not less than 20 per cent being effected by him. All vouchers checked by the Treasury Officer himself must be initialed by him as a token of the fact that he has exercised the check.

  1. The Treasury Officershall see that the cash balance of the sub treasury has beenactually counted and certified by the Sub Treasury Officer on the closing day. The cash balance of the sub treasury must be written in words as well as in figures, the words being written in such manner as to have no room for alteration or interpolation. The Treasury Officer is also required to observe special precautions to satisfy himself that Sub Treasury Officer’s signature on the daily sheet and supporting documents is genuine and that the accounts have not been tampered with in transit. Unless there is specific instruction from the Accountant General to the contrary, the accounts must invariably be sent by post.
NOTE.—
The Sub Treasury Accounts and supporting documents pertaining to a month, if dispatched on or after the first of succeeding month, shall be sent to the district treasury in sealed packets through a special messenger or otherwise so that they reach the district treasury not later than the second working day. 

CLOSING FOR THE DAY 

 

75. Subject to the directions contained in this behalf in the Kerala Account Code, Volume II, the process of closing accounts for the day shall be as follows:

(a) The daily total of each subsidiary register will be entered in the appropriate part of the Day Book, which will then be totalled and the balance memorandum at the top of the Section Head’s balance sheet will be drawn up strictly in accordance with the directions contained in the Kerala Account Code, Volume II. To the account balance thus brought out the additions and deductions indicated at foot of the Day Book form will be applied so as to bring out the cash balance at the district treasury.

(b) Meantime, the Treasurer will also sum both sides of his Day Book and draw up his balance memorandum in the form of the Treasurer’s daily balance sheet, Form T.R. 3 or T.R. 4, as the case may be.

(c) If the results shown in the two balance sheets agree, the Treasury Officer should sign the two Day Books and the two balance sheets. He should first satisfy himself of the correctness and good order of all these documents and should give special attention to the reconcilement of the account balance of the district with that actually in the headquarters treasury; the latter excludes the balance in sub treasuries or under remittance within the district which the former includes.

(d) The following is memorandum of some of the more important parts of the verification. The Treasury Officer should:—

(i) compare each entry of payment in a register with the payment order ticking off each voucher as it is passed. This will not be necessary if the Treasury Officer adopts the alternative plan having the account entry presented to him for initials at the same time that he signs the order of payment;
(ii) examine at least two of the totalling on each side, marking the totals as “Exd”;
(iii) see the totalling are correctly carried from the register to the Day Book, initialing the totals as he thus compares them;
NOTE.—This must be done, in the case of receipt registers even when the total for the day is blank; but it is not necessary to initial blank payment registers. If the number of blank receipt register is large the following plan may be adopted. Such registers as are only rarely required for entry may be bound in a single volume and kept under the Treasury Officer’s own lock. When the volume is required for entry, he should give out of register for the purpose, and he should receive it back at the time of signing the daily accounts, carefully seeing in doing so that all new entries in it are correctly carried to the Day Book and initialing them accordingly. It is obviously necessary to guard against fraud or mistake of omitting to bring all entries from these registers upon the Day Book; and this precaution is not complete if the Treasury Officer examines only those registers from which an entry is made upon the Day Book.
(iv) verify the totalling of the Day Book or get it done by some principal subordinate officer other than the Accountant who should initial it is correct;
(v) see twice every week that all vouchers are properly arranged.

(e) Before signing the Treasurer’s daily balance sheet, the Treasury Officer should roughly verify the balance in the sole charge of the Treasurer, as shown in that sheet, and satisfy himself on the following points:

(i) that no uncurrent coins are left in charge of the Treasurer;
(ii) that no more small silver and copper, bronze and nickel coin is so left than is actually required for current use;
(iii) that the whole balance in sole charge of the Treasurer never exceeds his current requirements.
(f) when a deficiency is found in the cash balance of any day it should be made good at once by the person responsible for it and the closing cash balance of the day should be the full balance including the amount lost and made good. If, however, for any exceptional reason the amount of deficiency is not immediately restored to the treasury balance, it should be charged in the accounts of the day on which the deficiency is discovered under “8550. Civil Advances— Other Advances—Other items” on a voucher signed by the Treasury Officer specifying the name of the person who should make good the amount. The amount recovered should be credited to the same head of account. “8550. Civil Advances—Other Advances—Other items”.

When any excess is found in the cash balance, it should be credited to Revenue Deposit on the day on which the excess is found, pending enquiry and disposal of the amount. If the enquiry does not establish beyond doubt that the excess is due to a particular person, it should be credited to Government under “0070 Other Administrative Services-C Other Services-Other receipts-Other items”. If the amount is proved to be payable to any particular person, the refund should be made under the orders of the Director of Treasuries

Such deficiencies or excess should be reported to the Director of Treasuries and Accountant General.

(g) The Treasury Officer should always be careful to sign the Treasurer’s balance sheet in the evening of the day itself to which it refers but the signature and comparison of the Day Book need not be made till the following morning unless the office is to be closed for two or more days. The Section Head’s balance sheet must not be signed, until it has been carefully agreed with the Treasurer’s.

NOTE.—
Ordinarily, the Treasurer’s balance sheet should be compared and agreed with that of the Assistant Treasury Officer and/or the Section Heads of the Accounts Department before closing the treasury for the day and it is only when pressure of work renders this impossible that the comparison may be postponed till the following morning. When this is necessitated, the certificate over the Treasury Officer’s signature at foot of the Section Head’s balance sheet should be altered in manuscript by cancelling the words “agreed with the Section Head’s daily balance sheet and” before the form is signed by the Treasury Officer which must be done before closing the day. An additional certificate will then be added and signed by the Treasury Officer in the following morning viz., “agreed with the Section Head’s daily balance sheet”. For the 31st March and the first few days of April it will be necessary for the Assistant Treasury Officer and/or the Section Heads of the Accounts Department to prepare a separate rough balance sheet on each of these days for comparison with that of the Treasurer as the completion of the Assistant Treasury Officer and/or the Section Heads of the Accounts Department balance sheet for the 31st march has to await the receipt of the Sub Treasury accounts.

(h) The foregoing provisions of this rule apply also to treasuries which transact their cash business through the Bank subject to the modification that the correctness of the daily accounts should be tested by a comparison of the totals of receipts and payments in the day Book with the corresponding totals in the daily accounts received from the Bank also.

NOTE.—
When with the concurrence of the Accountant General the daily account of the Bank is submitted to a treasury in the morning of the day following that to which it refers, the signature and comparison of the Day Book may be made in the evening instead of in the morning of the day on which the Bank’s accounts are received, provided the pressure of work renders it necessary to so postpone it.

CLOSING FOR THE MONTH 

 

76. (1) The monthly accounts of the District Treasury shall be kept open till the receipt of daily sheets of every Sub Treasury subordinate to it for the entire period of the month. Every effort shall be made to close the accounts of the each month at the earliest possible date and in any case not later than the 6th of the succeeding month.

(2) The monthly accounts of each non-banking Sub Treasury should be closed on the last working day of each calendar month. Those of each banking Sub Treasury shall be closed on the working day immediately following the last working day of each calendar month i.e., after accounting the transactions taking place at the bank on the last working day of the month. The transactions of every Sub Treasury for each day shall be included in the accounts of the District Treasury on the day on which the daily sheet is received except in the case of daily sheets pertaining to one calendar month received in the District Treasury on or after the first of the succeeding month in which case the transactions as per such daily sheets shall be included in the District Treasury accounts for the last working day of the calendar month to which they relate.
77. (1) In closing the accounts of the District Treasury for the month, the month’s total of the subsidiary registers will be carried into the cash account in the case of receipts and into the list of payments in the case of payments, the cash account being closed in accordance with directions contained in the Kerala Account Code Volume II. The cash must be verified by actual counting and the cash balance report made out in accordance with the procedure prescribed in Part IV.
(2) The monthly cash account shall be subjected to very careful check by the Treasury Officer when it is laid before him. He must satisfy himself that the opening and closing balances of this account are not merely deductions from accounts but are statements of facts certified to have been verified by actual enumeration of coins and notes. The Treasury Officer shall also check each entry in the cash account and list of payments with the corresponding totals in the Day Book and see that the totals of all the registers are correctly carried into the Day Book.
NOTE.—
If, at any time, the Treasury Officer be unable to compare all, at least he may compare some; notably, he should compare the entries in the plus and minus memorandum of deposits, stamps, etc., with the entries in the account, for example if the plus and minus memorandum shows a reduction in the stock of judicial stamps to the value of ` 5,000 and if the credit in account be less, the difference must be traced and satisfactorily accounted for.

MONTHLY ACCOUNTS AND RETURNS 

78. (1) A complete list of treasury accounts and returns to be rendered on different prescribed dates to the Accountant General, the Currency Officer and other authorities shall be kept at each treasury. The accounts and returns should be written up in accordance with the directions contained in this behalf in the Kerala Account Code, Volume II, and such orders and instructions as may be issued by the Director.

(2) With regard to the punctual submission of the accounts and return the Government shall view with displeasure any avoidable delay on the part of the Treasury Officer in the despatch of the prescribed accounts and returns with complete schedule and vouchers, particularly those required by the Government, the Accountant General, and the Currency Office concerned.

NOTE.—The returns due for despatch on a holiday may be sent one day (but not more than one day) late.
79. Vouchers pertaining to each schedule relating to the cash account or the list of payments shall be numbered consecutively in a separate monthly series and kept under lock and key in order of payment till they are despatched.
Before despatch of the lists of payments and schedules, the Treasury Officer shall by inspection satisfy himself that the required vouchers are all attached. He may find it profitable at intervals during the month to take up a schedule and see that all its vouchers are present in proper order and as no payment can be made without a voucher, there can be no excuse for the absence of any unless it be that for a specific remittance.
 

MISCELLANEOUS 

80. Fidelity Insurance guarantee shall be obtained for the following security posts in the Treasury Department for the amounts noted against
each, namely:-—
(a) Treasuries in District and Sub Treasuries Fidelity Insurance guarantee for `₹3,000
(b) Nottam and Gollahs in the District and Sub Treasuries Fidelity Insurance guarantee for `₹500

All the security posts, namely, Treasurers Gollahs and Nottams in the Department of Treasuries shall be covered by a Single Fidelity Guarantee Insurance Policy in the name of the Director of Treasuries subject to the following conditions:—

(1) The Blanket Insurance Policy need not contain the name or names of the persons covered but shall mention the designation and the number of persons in each category.

(2) Whenever there is an increase in the number of post in any of the categories covered, the Director of Treasuries shall intimate that fact to the State Insurance Department within 15 days of the date of appointment to the post. The additional premium required shall be paid within the prescribed period on receipt of intimation from the State Insurance Department.

(3) Only regular employees shall be allowed to hold these security posts.

(4) Whenever there is necessity for any substitution and officiating arrangements, necessary office orders in this regard shall be recorded by the officer making the arrangement and shall be made available for verification by the Insurance Authority, if found necessary.

(5) The Blanket Insurance Guarantee Policy shall be renewed at the appropriate time every year.

[Rules 81 to 84 omitted]

85. Responsibilities of Chief Treasurer and the Treasurer in the handling of money.— A Treasurer should not be placed in charge of the treasury keys, and should not be made to keep any accounts other than those property pertaining to his office. If the Chief Treasurer of a district treasury goes on casual leave, however, he may, at his option, hand over his treasury keys to the Treasurer or to the Senior Accountant serving under him, on the clear understanding that, in all cases, the Chief Treasurer will be personally responsible for any loss that may occur.

Each of the Treasurers or the Nottams should be required to make good any uncurrent or counterfeit coin received by him and any overpayment made by him.

86. Precautions against substitution of coins in Treasuries.—To guard against the possibility of uncurrent or counterfeit coin being substituted in a treasury for good coin presented by the public or received in a remittance, every Treasurer and other government servant who handles coin in a district treasury should be required, on arrival for the day’s work to hand over to the Chief Treasurer or a responsible subordinate chosen by the Chief Treasurer for the purpose, all coins (private cash, etc.) which he is carrying at the time and to take them back when leaving the office after the day’s work.

The procedure described above should also be followed at a sub treasury, the duties assigned to the Treasurer of a district treasury in this connection should be performed by the Sub Treasury Officer in the sub treasuries.

87. Subject to the foregoing Rules 80 to 86 the detailed instructions regarding the form of security the time limit, the custody and any verification, the release of securities, etc., are contained in the Kerala Financial Code, Volume I.
Category: KTC Volume 1KTC Volume 2Kerala Treasury Code - KTC