1. This Chapter lays down the significant accounting policies with respect to the expenditures to be incurred under this project. The policies stated below would be adopted by all the Departments and their respective spending units which would receive funds under this project. By adopting these policies, there will be uniformity in accounting and ease in consolidation and reporting.
As a general principle, funds to the accounting centres under the project would be through the BDS system prevalent in the State. However to some accounting centres (ATMAs, VANAMATI under Agriculture Department; PCU –MACP, PIU - AGRI. MKTG, MSWC and the beneficiary account at the level of DDRCS and NIPHT under Cooperation & Marketing Department) grants will not be through BDS but through a cheque payment system.
Hence though complete accounts for the project would be on cash basis, a single entry system would be followed for accounting purposes, for part of the project which follows BDS system and a double entry system would be followed for the non-BDS part. Tally software (9.3) will be used for maintaining accounts for the non-BDS part. However for Beneficiary Contribution accounts at the DDRCS level, single entry system would be followed.
2. The WB generally reimburses all paid expenditures except advances.
Thus all sorts of advances given to employees would be accounted as advances only and booked as expenditure only on receipt of bills/ vouchers.
However there would be two exceptions to this i) in case mobilization advance is given to the contractor if backed by a Bank Guarantee or Fixed Deposit Receipt, this advance could be considered as eligible for claim by the WB ii) In case of Community Procurement at the FCSC / Rural Haat level, advance given by the DDRCS to the beneficiary organisation would be considered as expenditure.
3. Under the mainstream government accounting system, release of funds by Commissioner