ACCOUNTING PROCEDURES MEETING WITH ALL SENIOR ACCOUNTS/JUNIOR ACCOUNTS AND ACCOUNTS OFFICERS MEETING ON AT AM

Accounting system is a series of tasks in an organisation by which transactions are processed as a means of maintaining financial records.

NEED FOR MUNICIPAL ACCOUNTS Essential for Good Governance Necessary for collection of all taxes and Non-Taxes Provide a true status of financial position Utilization of funds in confirmation with financial standards. Adherence to budget provision Essential for preparation of Budget estimates and Administration Report

R OLES & R ESPONSIBILITY OF A CCOUNTANTS Accountant is the head of accounts section. Plays a key role in maintenance of the accounts Administrative Responsibilities Financial Responsibilities

R OLES & R ESPONSIBILITY OF A CCOUNTANTS (C ONTD.) Administrative Responsibilities: - He/She is responsible for preparation of monthly and annual accounts. - He/She is responsible for preparation of budget estimate and RBE. - Preparation and consolidation of replies to objections raised in the audit. Financial Responsibilities: - He/She is responsible for proper maintenance of cash book, cheque book, and treasury / bank pass book and custody.

R OLES & R ESPONSIBILITY OF A CCOUNTANTS (C ONTD.) He/she is responsible to ensure that all payments from municipal funds are made as per principles of Municipal Accounts Code, the rules & instructions by the Government To close the cash book every month by 10th of succeeding month. To reconcile each cash book with chitta, bank remittances and subsidiary registers including e-seva remittances. To reconcile the cash books with treasury / bank pass book every month.

R OLES & R ESPONSIBILITY OF A CCOUNTANTS (C ONTD.) To maintain Posting Register. To keep all paid vouchers in safe-custody and produce the same before audit. To ensure maintenance all subsidiary registers. To maintain prescribed for accounts section. To scrutinize and pass all bills including work bills. To ensure recovery of Income tax from the bills paid to the contractors and its prompt remittance to income tax department

R OLES & R ESPONSIBILITY OF A CCOUNTANTS (C ONTD.) To ensure relevant recoveries are made from employees, contractors, suppliers etc. and ensure their prompt remittance to the respective heads/departments without any delay. To ensure prompt adjustment of assigned revenues, non-plan grants, plan grants etc. to the municipal funds. To ensure prompt payment of loan annuities.

R OLES & R ESPONSIBILITY OF A CCOUNTANTS (C ONTD.) To ensure adjustment /recovery of all kinds of advances pending over three months. He is responsible for all the investments made by municipality and ensure prompt realization / renewal of interest / investment To ensure prompt maintenance of Budget allocation register to avoid excess expenditure on budget head. Responsible for placing the financial position of the municipality before the Council every month. Responsible to attend the council meetings and preparation of agenda of accounts section

R ECIEPTS After verification by Tax clerk he permits the BCs to deposit money in Mpl. Treasury. Shorff receives money and acknowledges and enter in chitta. All monies received from BCs,other staff,Public are entered in chitta by Shorff. Daily collection including cheques should be sent to bank through challan on next working day. Entries to be made in DEABAS on daily basis

E XPENDITURE - A CCOUNT Voucher Every person having a claim against Mpl.fund shall present a bill It shall be signed and dated, and stamped All payments shall be made only after bills are passed by the Commissioner Bill after passed for payment is called a “Voucher” Vouchers are entered in cash book on debt side Serial No. to be given

E XPENDITURE All payments to be made in form of cheque When inevitable cash payment may be made for meager amounts. Mostly to be avoided Cash payments to be made by shorff To be vigilant while incurring expenditure Head wise posting to be made in DEABAS on daily basis without fail.

E XPENDITURE (C ONTD.) CC charges to be paid promptly Recoveries from bills VAT IT Besides recovery and remittance, online entries to be made on quarterly basis Seniorage EPF ESI All Delayed payments attracts interest and freezing of accounts.

C HECK LIST T.N.NO Name of the work Estimate Cost General Funds/Scheme Funds Council Resolution No Technical Sanction No T.A.C.R.NO Work Order Date Name of the Contractor Agreement No M.A.E M.B.NO 1% E.M.D D.D.NO._____________Dt.__________Rs.____________ 1.5% E.M.D D.D.NO._____________Dt.__________Rs.____________

E XPENDITURE Thumb Rules All expenditure should be sanctioned by council No payments without Administrative sanctions work bills below Rs 1.00 lakhs is through tenders only. Work bills above Rs 1.00 lakhs is through e- procurement Materials should be entered in stock registers Item wise watch registers to be maintained All entries to be made in DEABAS MAARC will monitor entries in DEABAS

P REPARATION OF A CCOUNTS Classification of all amounts received and spent head wise. If made in DEABAS, system will generate Closing of Chitta with daily and monthly abstracts Monthly abstracts in all cash books. 001,002,003 and all bank accounts Reconciliation with Treasury, Bank pass book most important.

B UDGET It is a statement of receipts and expenditure for a financial year. Revised estimate of current year and BE of the following year are generally prepared Budget contains probable receipts and expenditure during following year. Accountant in consultation with all section head should prepare draft budget Budget to be placed before council 31 st December. Budget to be earmarked as per Government instructions from time to time

A CCOUNTING M AL - PRACTICES Mis appropriations Mis Utilisation Excess Utilization Irregular payments Short remittances Irregular purchase Pending Advances Procedural lapses Diversion of funds Non Production of records Non Payment of dues to Government

A NNUAL A CCOUNTS - A UDIT P ENDING : Warangal : Warangal, Palvancha,& Jangoan : Pending from 53 Ulbs Audit Objections -109 Years Nos of Objections pending -Highest in Khammam Nos - In 30 ULBs on line data entry is not made for 2015

R EFORMS IN A CCOUNTING DEABAS introduced in 40 ULBs RCA firms being identified for for 27 newly constituted ULBs All older Ulbs to prepare Annual Accounts in DEABAS for by themselves using CGG tool. MAARC cell to assist. Deputation of Accounting personnel. Usage of Online CGG’s Accrual Based Accounting Software MAARC cell available in C&DMA office for any time assistance. Help desk also being placed in C&DMA office

E XPECTED O UT COMES To establish standard accounting practices in all ULBs Converting to DEABAS by all the ULBs All older ULBs to sustain themselves with DEABAS Minimize Accounting Mal practices Curtail Misappropriations Achieve 100% performance grants under 14 th Finance Commission grants To make Telangana a Model State