Accounting Policies and Records

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 centers 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.
The WB generally reimburses all paid expenditures except advances.
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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 centers 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.
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. Sanction of Advances and their reimbursement will be governed by State Service rules.
  • 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.
Under the mainstream government accounting system, release of funds by Commissioner Agriculture to the ATMAs, VANAMATI as well as funds released by the Department of Cooperation and Marketing to MSWC, PIU-AGRI. MKTG and PCU will be accounted for as expenditure by the AG(A&E). However, these releases are actually in the nature of advances out of which expenditures will be incurred by the recipients as and when required. Each of these recipient agencies will account for expenditures incurred by them and report the same in the quarterly IUFRs.
Therefore, the PCU while preparing consolidated IUFRs for submission to the Bank will deduct above-mentioned releases accounted for as expenditures in the AG (A&E’s) accounts or DDO’s monthly expenditure statements and include the expenditures reported by each of these units. This apart, expenditures incurred out of the beneficiary contribution received under the three sub-components namely Upgradation of Rural Haats, Modernisation of Wholesale Markets and Farmer Common Service Centers will also be included in the consolidated IUFRs. The IUFR formats are given in Annexure 16 to 20.
 
i) Financial Reporting Framework
 
S. NO.
Name of the Accounting Centre
Report to be submitted
Consolidation
 
Yes/No
Periodicity
To be submitted to
Department of Co-operation and Marketing
1
PCU
1) MES
2) QuarterlyIUFR 3) PFS
Yes
1) Monthly
2) Quarterly
3) Annual
1)World Bank
2) External Auditor / WB
2
PIU - AGRI. MKTG
1) MES
2) QuarterlyIUFR 3) PFS
Yes
1) Monthly
2) Quarterly
3) Annual
PCU
4
DDRCS
1) MES
2) QuarterlyIUFR 3) PFS
No
1) Monthly
2) Quarterly
3) Annual
PIU (Agri Mktg)
5
NIPHT
1) MES
2) QuarterlyIUFR 3) PFS
No
1) Monthly
2) Quarterly
3) Annual
PIU - AGRI. MKTG
6
MSWC
1) MES
2) QuarterlyIUFR
3) PFS
No
1) Monthly
2) Quarterly
3) Annual
PIU - AGRI. MKTG
Department of Agriculture
7
PIU Agriculture
1) MES
2) QuarterlyIUFR
3) PFS
Yes
1) Monthly
2) Quarterly
3) Annual
PCU
8
ATMAS (Agriculture + Animal Husbandry components)
1) MES
2) QuarterlyIUFR
3) PFS
No
1) Monthly
2) Quarterly
3) Annual
PIU Agriculture
9
VANAMATI
1) MES
2) QuarterlyIUFR
3) PFS
No
1) Monthly
2) Quarterly
3) Annual
PIU Agriculture
10
JDA Aurangabad (For HPTI)
1) MES
2) QuarterlyIUFR
3) PFS
No
1) Monthly
2) Quarterly
3) Annual
PIU-Agriculture
Department of Animal Husbandry
11
PIU, Animal Husbandry
1) MES
2) QuarterlyIUFR
3) PFS
Yes
1) Monthly
2) Quarterly
3) Annual
PCU
12
District level units, Animal Husbandry
1) MES
2) QuarterlyIUFR
3) PFS
No
1) Monthly
2) Quarterly
3) Annual
PIU-AHD Commissioner Animal Husbandry
 
Due Date of the Reports to be submitted by Accounting Centers to respective PIU’s
Name of the Report
Due Date of submission
MES
7th of the following month
IUFR
15 days after the end of Quarter
PFS
15 days after the end of year
 
Note: The format for each report has been attached in the Annexures. As per the set Govt. procedure, the Controlling Offices ( Commissioner Agri., Director of Marketing and Commissioner AHD) will quarterly reconcile the booked expenditure in their books of accounts with the expenditure booked at AG office.


Accounting Records
The accounting centers will maintain the following accounting records.
List of books of accounts to be maintained by Accounting Centers
A. Primary Books of accounts
 
Sr.No
Name of the record to be maintained
BDS Accounting centers
Non BDS Accounting Centers (Tally)
A.1
Cash Book
As per prevailing Govt. accounting system
would be automatically generated by Tally Software
A.2
Bank Book
As per prevailing Govt. accounting system
would be automatically generated by Tally Software
A.3
General ledger , BRS, Trial Balance.
N.A
would be automatically generated by Tally Software
 
B. Secondary Books of Accounts
 
Sr.No
Name of the record to be maintained
BDS Accounting centers
Non BDS Accounting Centers (Tally)
B.1
Register of Cheques and Bank drafts received
As per prevailing Govt. accounting system
should be maintained as given in Annexure 1
B.2
Cheque issued / bank draft issued register
As per prevailing Govt. accounting system
should be maintained as given in Annexure 2
B.3
Bill Register- Pending and paid
As per prevailing Govt. accounting system
should be maintained as given in Annexure 3
B.4
Stock register
As per prevailing Govt. accounting system
should be maintained as given in Annexure 4
B.5
Advances Register
As per prevailing Govt. accounting system
Advance subsidiary ledger will be generated by Tally
B.6
Grants Sanction and expenditure register
As per prevailing Govt. accounting system
should be maintained as given in Annexure 6
B.7
Fixed asset register
As per prevailing Govt. accounting system
should be maintained as given in Annexure 7.
B.8
List of ICB/ NCB / Local contracts
Should be maintained as given in Annexure 8
Should be maintained as given in Annexure 8
B.9
Beneficiary Contribution Register
Should be maintained at DDR level as given in Annexure 9
N.A
B.10
Register of payments to contractors
Should be maintained at DDR level as given in Annexure 10
Subsidiary ledgers of contractors will be maintained in Tally, if required by any of the non-BDS units
B.11
Register for Grants release for beneficiary organisations FCSC/RH
Should be maintained at DDR level as given in Annexure 11
 
C. List of Periodic Financial Reports to be submitted by accounting centres
Sr. No
BDS Accounting Centre
Non BDS Accounting Centre (Tally)
Periodic reports to be submitted
Frequency of submission
Periodic reports to be submitted
Frequency of submission
C.1
MES
Monthly
as per prevailing Govt. procedure
Interim Unaudited Financial Reports (IUFRs) Annexure 16 to 19
a) Quarterly sources and uses of funds (Trial Balance type format) (as per Annexure 12 )
b) Statement of expenditure (as per Annexure 13)
c) Summary of category wise expenditure ( as per Annexure 14)
d) Summary of claim (to be done only by PCU as per Annexure 15)
Quarterly
C.2
Statement of ineligible advances
Quarterly
-
-
C.3
Annual Budget
Yearly
 as per prevailing Govt. procedure
Annual Budget
Yearly
as per prevailing Govt. procedure
C.3
Utilization Certificate and work completion certificate (as per prescribed format).
Quarterly
Utilization Certificate and work completion certificate (as per Annexure 20 & 21 )
Quarterly
( along with IUFRs )
The format of these above mentioned registers and that of the periodic reports to be submitted by the accounting centers is given in the Annexures attached with the manual. Books and forms of accounts shall be maintained as given in the laid down format. If some more registers and forms are required, they may be adopted by the office of the PCU with the approval of the Project Director, MACP. These registers and periodical reports would ensure accountability in the project.
           
PRESERVATION & DESTRUCTION OF RECORDS
The following record should on no account be destroyed:
  1. Record connected with expenditure of MACP work not completed although beyond the period of limit.
  2. Records pertaining to cases in which litigation is in progress.
  3. Records connected with claims to service, personnel matters affecting persons in the service.
  4. Orders and sanctions of permanent character until revised.
  5. The following records may / should be preserved not less than the period specified against them.
The following table shows the duration of preservation of records and the officer responsible to maintain the same.
 
S. No.
Document Details
Duration of Preservation
In charge Officer
Remarks
1
Cash book
Permanent
Accounts Officer / Accountant @ Accounting Centre
--
2
Pay slip & Receipt
10 Years
Accounts Officer / Accountant @ Accounting Centre
--
3
Service Book
Permanent
Nodal Officer, PIUs / Administrative Officer, PIUs
Death or Retirement whichever is earlier
4
Leave Account
Permanent
Nodal Officer, PIUs / Administrative Officer, PIUs
Death or Retirement whichever is earlier
5
TA and Receipt
5 Years
Accounts Officer / Accountant @ Accounting Centre
--
6
Postage Stamp related Account
5 Years
Nodal Officer, PIUs / Administrative Officer, PIUs
--
7
Dead Stock Register
Permanent
Accounts Officer / Accountant @ Accounting Centre
In case of finishing of first register, inspect the objects and enter useful objects in a new register with full details.
8
Stationery Register
5 Years
Administrative Officer / Accounts Officer / Accountant @ Accounting Centre
--
9
Vouchers
Permanent
Accounts Officer / Accountant @ Accounting Centre
--
10
Charge Transfer related documents
5 Years
Nodal Officer, PIUs / Administrative Officer, PIUs
--
11
CL Register and Note sheet
2 Years
Nodal Officer, PIUs / Administrative Officer, PIUs
--
12
PF Register
Permanent
Nodal Officer, PIUs / Administrative Officer, PIUs
--
13
Salary Increment Register
5 Years
Nodal Officer, PIUs / Administrative Officer, PIUs
--
14
Advance Approval Related Documents
5 Years
Nodal Officer, PIUs / Administrative Officer, PIUs
--
15
Government Orders
Permanent
Nodal Officer, PIUs / Administrative Officer, PIUs
--
16
Comparative Chart of Quotations
Permanent
Accounts Officer / Head of Office @ Accounting Centre
--
17
Log book
Permanent
Administrative Officer / Accounts Officer / Head of Office @ Accounting Centre
--
18
Register of Deposits and Advances
Permanent
Accounts Officer / Head of Office @ Accounting Centre
--
19
Guard File of Orders related to Project
Permanent
PD / Head of PIU / Head of Office @ Accounting Centre
--
 
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