1 8 Formats, Guidelines and List of Codes Presented by Local Fund Audit Organisation Government of Orissa

2 Introduction (Need for Simplified Format) Devolution of Power to PRIs consequent upon 73 rd Amendment of Constitution. Recommendations of 11 th FC for proper control and better accountability. Easy adoption at the grass root level. Uniform maintenance of accounts all over the country. Facilitation of generation of Financial Report through information and communication technology.

3 Salient Feature of the Format Assigning digital code to every Head of A/c. The first 4 digit is the Major Head representing - function. Second 3 digit is the Minor Head representing – Programme/ Unit of Exp. The third tier two digit is the object head representing – object item of expenditure. Provision of opening of Separate object head as per requirement. Opening of the Minor Head ‘800- Other Receipts’ and ‘800- Other Expenditures’ as per requirement.

4 contd Distinct two digits Sub-Head for the Central Schemes. Provision for two digits Alpha numeric Sub-Head for States Scheme. Separate Minor Head for assigned revenue under the Receipt Major Head. Keeping up accounts in two parts a) Part-I- Transaction of Panchayat Funds b) Part-II- Provident fund, Loans etc.

5 Functions and Corresponding Major Head 29 functions classified under 23 Major Heads. 3 Additional Major Heads i) ‘2049- Interest Payments’. ii) ‘2071- Pension and Other retirement Benefits’. iii) ‘2515- Panchayat Raj Programmes’. Separate Major Heads to record transactions under Loans, Pension and provident fund, Insurance and Pension fund deposit and advances and civil advances. Recording of unclassified transactions under ‘8658-Suspense Accounts’ for the time being.

6 Accounting Procedure Accounts are maintained on Cash Basis. Period of Accounts is the Financial year. Daily transactions with proper Head of Account to be recorded in Cash Book with arrival of CB. Transfer of Every Day transactions to the Register of Receipts/ Register of Payments. Monthly reconciliation of Bank and Treasury Account. Maintenance of monthly Receipt and Payment accounts up to object head level. Maintenance of Consolidated abstract Account. Maintenance of Annual Accounts of receipts and payment. Annual reconciliation of receipt and expenditure figures with department etc.

7 Contd Preparation of Budget basing on the above classification. Maintenance of Registers like – - Receivable and Payble - Movable and Immovable Property. - Inventory - Demand Collection and Balance Correction of Mistakes.

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