1. Accounting & Financing in po
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2. Accounting network of Post Offices
Postal Account office
Responsible for incorporating account of all HOs in circle
Head Post Office
Supplies cash, stamp, IPOs, certificates, passbooks, recpt bks
Consolidation of account of subordinate offices
Sub Post Office
SO is placed in account with HO
Branch Post Office
Having limited powers of Saving Bank and Booking of postal articles
Can be directly under Sub Office which is called its Account Office
Submits its Daily A/C to Head Post Office
Submits Daily Account to its account office i.e. SO
Sub account branch of account office monitors its functioning
Consolidate the transactions of BO also into its accounts
Submits returns and accounts to concerned PAO
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3. ACCOUNTING NETWORK
PAO HO SO BO
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4. Receipt and opening of BO Bag at AO
Mail PA receives bags from various sources
Hands over BO bag to treasurer
Treasurer examines the condition, opens it in the presence of Sub Account PA
Gives acquittance for cash bag in BO daily account
Returns all documents to Sub account PA
Rule No 68 & 69 of PO Manual Volume VI Part-III
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5. Receipt and opening of BO Bag at AO
Sub Account PA to:
- Examine if all the documents are correctly
received
- Distributes the contents to respective branches.
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Rule No 68 & 69 of PO Manual Volume VI Part-III

6. Distribution of contents
Description of articles
Unpaid station article, if any
Paid station articles
Other unregd.articles
Regd.and VP articles
Handed over to-
SPM
Delivery PA
Sorting PA
Registration PA
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Rule No 68 & 69 of PO Manual Volume VI Part-III

7. Distribution of contents
Parcel and VP parcel
MO s booked(for re-booking)
MO s paid vouchers
Parcel PA
MO issue PA
MO Paid PA
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Rule No 68 & 69 of PO Manual Volume VI Part-III

8. Distribution of contents
SBPA
SPM
Retained by SAC PA
SB/RD/TD vouchers and documents
Acquittance rolls
BO daily account
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Rule No 68 & 69 of PO Manual Volume VI Part-III

9. Exercise 1
Exercise 2
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10. Checking of BO Daily A/C
Should ensure that—
Cash from BO acknowledged by treasurer
Cash remitted to BO taken into account
Date stamp impression
Opening balance is correct
The account tallies with documents such as MO issue, MO paid, SB deposit etc.
Details of closing balance agrees with account
Cash and stamps retained within the limits
Signature of BPM
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Rule No 68 of PO Manual Volume VI Part-III

11. Rule No 73 & 74 of PO Manual Volume VI Part-III
BO SUMMARY
A consolidation of BO daily account at AO
Maintained by AO, having BOs
One line for each BO
Transactions posted
- Opening balance
- Receipts
- Total of Receipts
- Payments
- Total of payments
- Closing balance
- Transit
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Rule No 73 & 74 of PO Manual Volume VI Part-III

12. Index to Branch Office receipt
Maintained by Account Office.
Whenever Branch Office receipt is used by Branch Office it is noted against the name of Branch Office under corresponding date
It is maintained in prescribed format month wise.
Account Office to watch continuity of receipts used by Branch Office.
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Rule No 71 of PO Manual Volume VI Part-III

13. Index to Branch Office receipt
Particulars of receipt books supplied to Branch Office should be noted against the name of Branch Office under corresponding date
Similarly, Index to Branch Office receipt is to be maintained for other type of receipt books used by Branch Post Master. Viz.SB26, TRC, RPLI, SB28 etc.
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Rule No 71 of PO Manual Volume VI Part-III

14. Purpose of preparing BO Slip
To acknowledge the closing balance of BO for previous day w.r.t BO summary
To invoice accountable articles/Money orders/documents to BO’s
To Advice remittance, if any;
- Cash
- Stamps
To Instruct BPM about irregularities if any
Rule No 27 & 63of PO Manual Volume VI Part-III
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PPT

15. Preparation Of BO Slip…
Prepared by SA PA at AO
Prepared in duplicate by carbonic process
Particulars of other accountable articles, MOs, MO receipt after booking, RLs, RPs, SB documents etc. are invoiced
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Rule No 27 & 63of PO Manual Volume VI Part-III

16. Preparation Of BO Slip…
Sub accounts PA to enter weight of cash bag
& invoice the same in BO slip
Treasurer to initial remittance entries
SA PA to sign and date stamp
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17. 1.6

18. 1.6

19. Procedure for closing of cash bag
Obtains the orders of SPM/PM for remittance
on reverse of BODA
Shows the order to treasurer & obtains his
initials
Completes all the entries in the BO slip, except weight of cash bag
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20. Procedure for closing of cash…
Treasurer notes orders of PM on daily account
Take correct cash and close it in cash bag
Seals cash bag with treasury seal and hands over to SA PA for weighing.
SAC watches closing of cash bag by treasurer
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21. Procedure for closing of cash bag…
Weighs cash bag in the presence of treasurer & notes weight on label of cash bag and both copies of BO slip
Obtains initials of Treasurer on both copies of BO slip
Puts documents and cash bag (by treasurer)inside BO bag , closes it & seals it & transfer to Treasurer for safe custody
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22. Procedure for closing of cash…
Observes SA PA weighing cash bag
Initial entry of remittance & weight of cash bag in BO slip
Keep cash bag inside BO bag
Keep sealed BO bag in his custody till despatch
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23. Preparation of Sub Office Daily Account
As per list & vouchers of various branches SPM prepares SO Account
SO Daily account is prepared w.r.t SO Account by SPM
Previous day’s closing balance is taken as opening balance for the day
Receipts & Payments taken as per Sub Office Account
Rule No:29 of Postal manual Volume : VI Part -II

24. Preparation of Sub Office Daily Account
Closing balance written in words & figures
Details of closing balance, particulars of authorized balances & liabilities noted
Reason for retention of excess cash should be noted
Reason for cash below minimum & for excess stamps should be noted
Particulars of cash and stamp remittances received & made should be noted
Rule No:29 of Postal manual Volume : VI Part -II
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25. Preparation of Sub Office Daily Account
Particulars of document sent should be noted on reverse side
Requirement of Stamps, Cash noted in the remark column
Signed by joint custodian and SPM
Impressed with Name stamp & date stamp
Rule No:29 of Postal manual Volume : VI Part -II
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26. Serious irregularities in SO Daily Account
Date stamp of office impressed with wrong type fixed.
Total of closing balance not written both words and figures
Cash retained excess without liability
Reason for retaining cash excess/short
Amount due from BO differs with reference to actual figures in the BODAs
Authorized balance shown wrongly
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27. Serious irregularities in SO Daily Account…
Authorized BO aggregate balance shown wrongly.
ECB
SO ECB not prepared
BO ECB not prepared
No.assigned to ECB differs
Red ink entry particulars wanting on the day of account ending
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28. Serious irregularities in SO Daily Account…
Remittance
Particulars of remittance not furnished
Particulars of remittance furnished wrongly
Receipts of special carrier is wanting
Balance of initial credit/additional credit wanting
Particulars of cheque against which cash drawn from bank wanting
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29. Serious irregularities in SO Daily Account…
Wrong calculation of interest in NSC/KVP discharge.
Will follow vouchers
Daily account is prepared by other than SPM
Signature of SPM/Joint custodian is wanting.
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30. Exercise 3
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31. Cash Management
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32. Excess Cash Balance Memo
(E C B)
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33. MAB and CMAB
MAB:
Authorised balance of cash and postage stamps of a post office, issued by Divisional Superintendent
CMAB:
Consolidate list of MAB of SOs under a HO and BOs under a SO, issued by Divisional Superintendent
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34. Excess Cash Balance Memo
Whenever Cash balance is kept in excess of authorized minimum cash balance SPMs have to note amount of liabilities in their Daily account
Whenever Cash balance is kept in excess of authorized maximum cash balance in addition to above action SPMs to prepare ECB in PA-20 and submit to HO
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35. Excess Cash Balance Memo…
SPMs of status LSG and above need not prepare this ECB memo
This is one of the preventive measures to avoid commission of frauds in Sub Offices and BOs
ECB contains two parts
1. ECB for Sub Office
2. ECB for Branch Offices
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36. It contains following information
ECB for Sub Office
Whenever SO Cash balance is kept in excess of authorized maximum cash balance SPMs to prepare ECB
It contains following information
Authorized Cash balances
Cash balance held on that particular day
Excess cash held
Explanation for excess retention of cash
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37. Any other reason for excess retention of cash
ECB for Sub Office…
SPM to furnish details of MO, Savings Bank/ Savings Certificates, Acquittance rolls by referring basic records of office
The particulars of late collections, late receipt of remittance from other offices to be furnished
Any other reason for excess retention of cash
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38. ECB memo should be given monthly serial number and signed and stamped
ECB for Sub Office….
ECB memo should be given monthly serial number and signed and stamped
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39. SPM to furnish explanation for retention of excess cash by each BOs
ECB for Branch Offices
Whenever total of CBs of all BOs is more than authorized BO aggregate balances , ECB for Branch Offices to be prepared
SPM to furnish explanation for retention of excess cash by each BOs
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40. ECB for Sub Office… SPM to furnish SPM to sign the ECB Cash held,
amount of liability of those BOs which are responsible for excess retention of cash w.r.t BO daily account and
mention his remarks of justification or otherwise
SPM to sign the ECB
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41. Whether ECBs are properly serial numbered
Action on ECB
A watch should be kept at HO whether ECBs are being prepared by SPMs wherever justified
Whether ECBs are properly serial numbered
HPM to check SO ECB memo w.r.t basic records of HO maintained in respective branches and pass his remarks whether explanation is satisfactory or otherwise
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42. Action on ECB….
HPM to check BO ECB w.r.t BO daily accounts and satisfy himself that remarks of SPM against each BO is justified or other wise. HPM to pass his remarks and sign.
All ECBs are stitched in a bundle stamped and submitted to Divisional Office on following day.
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43. ECB is finally filed at Divisional Office.
Action on ECB….
In DO ECB is scrutinized by Divisional Supdt. Or Asst.Supdt daily and pass his remarks as to whether it should be got enquired through concerned sub divisional IPs
ECB is finally filed at Divisional Office.
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44. Other important documents and records at HO
SO Summary
Treasurer cash book
HO Summary
HO Cash book & PM’s Balance sheet
Monthly cash account
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45. SAPA prepares SO slip to dispatch to SOs
SO Summary
SO Summary is maintained by HO Sub Account PA on par with BO summary that we have discussed already in two parts viz,
Part I
Part II
SAPA prepares SO slip to dispatch to SOs
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46. Preparation of SO Slip (PA-3)
Sub Account PA in HO prepares SO slip
- Enters all documents
- Enters closing balance
- Includes all contents
Sub Account PA shows to treasurer, the orders of PM for remittance
Treasurer closes cash bag as discussed earlier
Sub Account PA closes account bag
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Rule No 18 of PO Manual Volume VI Part-III

47. Treasurer’s Cash Book- Form ACG 2
Shows entry of cash, stamps and cheques
Maintained in the treasury
Treasurer should make all entries
Make entries as and when transactions occur
Number transactions serially
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48. Treasurer’s Cash Book- Form ACG 2
Entry of book transfers not to be made
Enter the name and designation of the official with the amount
Obtain acquittance both in words and figures when money is paid
All payment is to be authorized by the HPM/Supervisor
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49. Treasurer’s Cash Book- Form ACG 2
Hand over cash to official directly and not through any third person
Both the side of TCB totaled for the day and balanced
Closing balance be written in words
Book should be signed by treasurer and HPM
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50. Treasurer’s Cash Book- Form ACG 2
Closing balance should agree with the total “particulars of closing balance” of HO summary
Draw a line below the closing entries of each day
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51. HO Summary (ACG-1)
Account of cash receipts and disbursements of HO- maintained in two parts viz,
Part I
Part II
Balance of HO summary will comprise of;
i.Cash on hand
ii.Postage stamps
iii.Revenue stamps
iv.Other stamps
v.Amount of late IMT payment which is not accounted for
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52. Head Office Summary (ACG-1)
Total of i.to iv should agree with the daily balance of the TCB
Out of account cash details
IPOs of all denominations, Insured articles in the safe custody, and number of account bag or sealed cash bags received
To be signed both by Head Postmaster and Treasurer
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53. Head Office Cash Book Maintained in two parts viz,
Part I
Part II
Total of HO, SO and BO will be added together
Progressive totals struck from 1st to the end of the month
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54. HO Cash Book (Receipt) Items 1 HO As per HO summary 2
SOs as per SO summary 3
Bos as per BO summary 4
Total
HO,SO,BO 5
Previous days total 6
Progr-essive total 7
Unpaid 50 10 - 60
290
350
MO issue
8500
4250
12750
30475
43225 GT
101060
50530
151590
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55. HO Cash Book (Payment) Items 1 HO As per HO summary 2
SOs as per SO summary 3
Bos as per BO summary 4
Total
HO,SO,BO 5
Previous days total 6
Progre-ssive total 7
MO paid
15520
7760 -
23280
45670
68950 BP
250 25
275
670
945 GT
84480
43465
127945
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56. Postmaster’s Balance Sheet
At the bottom of HO cash book balance sheet will be prepared.
The object of the postmaster’s balance sheet is to work out reconciliation between the HO cash book and TCB, actual balance of SOs, BOs and transit
Balance sheet will be written by Head postmaster personally and must sign the certificate at the foot
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57. Postmaster Balance sheet1
Opening balance
28650 2
Total receipt as per col.5 of HO cash book
151590 3
Total (1 plus 2 above)
180240 4
Total payment as per HO cash book
127945 5
Closing balance (3 minus 4)
52295 6
Deduct balance in SOs and BOs
19065 7
Net Balance of Cash and stamps in HO (5 minus 6)
33230
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58. Details of CB in SOs & BOs1
CB as per SO summary
16615 2
SO transit as per so summary
2450 3
CB as per BO summary - 4
BO transit as per BO summary 5
Total
19065
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59. Submission of Cash Account to PAO
1st of each month cash account of HO for the previous month will be submitted in the prescribed form to the postal accounts office
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60. FINANCING OF POSTOFFICES
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61. Financing of PO-Principles
Cash should be available to meet demand
Not to be held in excess of demand
Easy Mode of
Clearance of cash
Getting of cash
Security arrangement
In collecting office minimum kept
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62. Financing of PO-Principles…
In other offices normally minimum plus liability to be kept
Liabilities exceed maximum balance, cash equal to actual liability to be kept
Liabilities includes MIS interest, matured NSC/KVP can also be foreseen
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63. Fixing of authorized balances
On the basis of cash handled by an office
Cash receipts
Cash payments
This can be arrived at by collecting four quarterly months statistics as discussed in next slides
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64. Collection of statistics
Suppose you are visiting a SO today ( ), then the statistics for the following months are collected
August 2012
November 2012
February 2013
May 2013
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65. Collection of statistics -Receipt side
Total of all columns in SO account except the following
Opening Balance column
Cash received from cash office
Book adjustment items
Cheque transaction
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66. Collection of statistics –Payment side
Total of all columns in SO account except the following
Cash remitted to cash office
Book adjustment items
Payment by cheques
Closing balance column
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67. Fixing of authorized balances…General Rule
Three type of offices will be there
Collecting office
Paying office
Office where receipt & payment equal
Minimum normally average requirement + 25%
Maximum normally 1.5 times of minimum
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68. Fixing of authorized balances…other points
Time required to replenish or clear cash
Safety arrangements for cash
Line limits for remittance
Whether the office is
Collecting office
Paying office
Both equal
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69. Fixing of authorized balance (collecting office)
Minimum cash
50% of daily average payment (Bank transaction)
Daily average payment + 25%
Maximum
Min + {(difference betn receipts & payments) x No.of days required for remittance to remove surplus cash}
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70. Fixing of authorized balance.(Paying office)
Minimum
(Daily average payment x No.of days for rem) + 25%
Maximum
Min + {(Daily payment-Daily receipts) x No. of days for remittance}
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71. Fixing of authorized balances
Receipts & Payments are equal
Minimum
Daily average pmt + {(difference between receipts & pmts) x No.of days for remittance}
Maximum
Min + {(difference between receipts & pmts) x No.of days for remittance}
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72. Fixing of authorized Stamp balances
SO/BO
Daily average sale of PS x 15
Head Office
Daily average sale x (30 + transit from CSD to HO)
Daily average = (HO Sale + Supply to SOs +Supply to BOs)
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73. Exercise- 4
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74. Line – limits Loose cash upto Rs.2 lakhs by any departmental employee.
In case of deptl. MMS with and MTS, the limit is Rs. 2 lakhs in cash bag enclosed in account bag.
In case of hired MMS(exclusive MMS), the limit is Rs. 1 lakh in cash bag enclosed in account bag. ( this limit is applicable to RMS section also.)
In case of weighment system, road transport, in account bag, the limit is Rs.40,000/
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75. Line-limits
For loose conveyance of above Rs.2 lakhs, remittance should be only accompanied by police guard or private guard.
These limits are applicable to branch offices, irrespective of foot, cycle or mechanised routes.
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76. Suggestions to reduce cash handling
Deposits by cheque or DD
Payment by cheque
Automatic transfer to POSB account
Reinvestments
Payments credited to POSB account
TRC by cheque
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77. Security vigilance on cash by IP
MAB
-Memo of Authorized Balance
CMAB
-Consolidated Memo of Authorized Balances MR
-Monthly Report
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78. Security vigilance on cash by IP…
ECB Memo
-Excess Cash Balance Memo
BO Abstract and MO payment
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79. Thank You
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