Accounting in DOP B1

System of Accounts of DOP Accounts of DOP form part of general accounts of the Government of India; Accounts of DOP form part of general accounts of the Government of India; Accounts of DOP are built on the same general plan of accounts of the Government of India; Accounts of DOP are built on the same general plan of accounts of the Government of India; DOP Receipts & Expenditure are recorded under various Major Heads- suitably divided & sub divided as per nature of transactions. DOP Receipts & Expenditure are recorded under various Major Heads- suitably divided & sub divided as per nature of transactions B2

Part I Part II Part III Consolidated fundContingency fundPublic A/Cs Consolidated fund Contingency fund Public A/Cs RevenueCapital Debt Remitt. Revenue Capital Debt Debt Dep. Remitt. [Pub. Debt/Loans & Adv.] Receipts Expenditure Charged PlanNon Plan Plan Non Plan Voted New Activity/ Existing Scheme Establishment General outlines of Accounts B3

Accounting Classification Six Tier accounting classification is adopted – Major Head – 4 digits ( function) – Sub-Major Head – 2 digits ( sub – function) – Minor Head – 3 digits ( Program) – Sub – Head – 2 digits ( Scheme) – Detailed Head – 2 digits ( Sub- Scheme) – Object head – 2 digits ( object head is primary unit of appropriation ) B4

Major Head – 3201 – Postal Services Sub Major Head – 02 – Operation Minor Head– 003 – Training Sub Head – 01 – Operational Training Detailed/Object heads (01) Salaries (02) Wages (03) Overtime Allowances (04) Pensionery Charges (06) Medical Treatment (11) Travelling Expenses (13) Office Expenses (14) Rent, Rates & Taxes (21) Supplies & Materials (26) Adv. Sales & Publicity. (28) Payments for prof. Service (50) Other Charges (64) Write off / losses EXAMPLE B5

Main head and Demand units Expenditure met from Revenue (Major Head 3201 – postal service) 01- General operations 02- Operations 03 – Agency services 04- Accounts & Audit 05 – Engineering 06- Amenities to Staff 07- Pension 08- Stationary & Printing 60 – Other expenses Expenditure not met from Revenue ( Major Head Capital outlay on Postal services) 003 – Training 101- Postal Network 104 – Mechanization & Modernization of Postal Services 202- Administrative Office 203 – Staff Quarters 204 – RMS Van 205 – Civil Engineering 800 – Other Expenditure Major Head – 1201 – Postal Receipts B6

Non Plan Expenditure DescriptionItems includedDescriptionItems included SalariesPay, allowances, honoraria, leave encashment Rent, Rates & TaxesRent for hired accommodation, municipal charges, municipal taxes WagesOf laborersSupply & materialMaterials, supplies, stores, equipment Over Time AllowanceAdvertising & publicityCommission to agents for sale, printing of publicity material, expend on fairs, exhibitions Medical treatmentReimbursement of medical expenses Professional servicesCharges on legal services, consultancy, remuneration to examiner’s, payments for service rendered Domestic travel expenses Travel/ conveyance expenses, TA/DA on travel Office ExpensesAll contingent charge for the office operation B7

Non Plan Expenditure ( ceiling Heads) Ceiling Heads WagesOver Time Allowance Medical TreatmentAdvertising, Sales and Publicity Domestic Travel AllowanceOffice expenses B8

Basic guidelines for incurring expenditure 1.The expenditure should always be proportionate to the total allotment. 2.By the end of December, 67% of the allotment should be spent. 3.Divisions are not allowed to spend more than 33% during the last quarter unless they receive any fresh allotment in the final grant B9

Basic guidelines for incurring expenditure 1.When excess funds are available, all the funds should be surrendered to RO before 10 th of March. The surrendered funds can be utilised by the needy divisions/regions. 2.Rush of expenditure during the final stage of financial year should be avoided. 3.Whenever expenditure exceeds the allotment, the divisional head should proper action to get additional funds from RO. 4.In case of emergency, the DO has to address RO/Budget and get the clearance for spending any expenditure above the allotment. 5.Otherwise, the divisional head will be held responsible for such excess expenditure B10

Appropriation of Accounts 1.The powers to appropriate funds within the object head rest with Chief PMG. 2.The appropriation at Circle level is done at the time of preparation of AFG statements. 3.Hence, the Divisional Heads should be more careful at the time of preparation of AFG and they have to surrender the unwanted funds. Such funds can be properly appropriated and allotted to divisions/regions by the Chief PMG. 4.Even after appropriation, if excess funds are available, that will be surrendered directly to Directorate by the Circle Budget. 5.Chief PMG is not competent to appropriate funds under OTA, Railway Haulage Charges, Pensionery funds, funds under printing heads B11

Thanks B12