SYSTEM OF ACCOUNTING OF EXPENDITURE IN
DEFENCEDefence Accounts Department( DAD) is responsible for audit,
payment and accounting of all Receipts and charges pertaining to Defence
Services and Defence Organizations.
Compilation Work in DAD offices
The accounting information in DAD are classified into various
accounting heads as given in the List of Major and Minor Head of Account (LMMH)
published by Controller General of Accounts.
The last element of accounting classification in DAD is in the
form of code heads. The code-heads are unique identification for accounting
transaction which are given by DAD.
The accounting code-heads operated by DAD in respect of Defence
Organisations are contained in Classification Hand Book- Defence Services
Receipts and Charges (CHB) and code heads other than Defence budget relating to
DAD, CGO, BRO, CSD, MOD(Sectt) and Public Account and Contingency Fund of India
are contained in Pamphlet of Revenue, Debt and Remittance Heads (RD & R
Pamphlet).
Compilation Work in
DAD offices
Compared to six tier classification followed in Civil
departments, where the object head is the sixth tier of classification, DAD
follows 5 tier classification with last tier classification- detailed head-
treated as object head.
Sectors
- Major Heads (Sub-Major Head in case of Capital Outlay)
- Minor Heads
- Sub-Heads
- Detailed Heads
The codification pattern for detailed code heads under each
Minor Head of CHB and R D & R Pamphlet. consists of 7 digits. The first two
digits denote category prefix, the next three digits denote the main part of the
code head and the last two digit denote suffix to the main code head. There are
about 1800 code heads in use in CHB and 900 code heads in R D & R
Pamphlet.
Punching Medium and its
elements
The basic document that goes into the compilation of accounts
is called the Punching Medium(PM). It is the most elementary document prepared
in the DAD offices that goes into the preparation of the accounts for the
Defence Services. It contains information relating to Month, CDA(code) booking
the transaction, classification code head, class of voucher, serial number of
the voucher, whether a Receipt or a charge and the amount.
The various class of vouchers and the respective code numbers
assigned to them are as under:
- Class 1- Cash vouchers
- Class 2- Transfer entries
- Class 3- Civil inter-departmental schedules
- Class 4- Abstract of receipts and charges
- Class 5- Cash accounts
- Class 6- Railway bills
- Class 8- Defence inter-departmental schedules
- Class 9- MES bills paid by main office
Distributed Data Processing
Centres
The present Financial information System revolves around
Distributed Data Processing (DDP) centers located all over the country,
co-located with Controller offices and in the CGDA EDP Centre. The PM are
forwarded by CsDA offices to DDP Centres for data entry and processing and
onward transmission to CGDA, EDP Centre for final compilation. The following
compilation reports are generated for distribution to various authorities at
MOD, Service Head Quarters and CGDA.
- All India Printed compilation
- Consolidated RDR
- Analysis
- Command–wise Report
- Directorate-wise Report
- Charged Expenditure Report
- Fictitious Head Report
- Category 13 and 16 Report
Adjustment of 0/020/80 (MROs)
Cash tendered by an officer of the Defence Services to
banks/treasury shall be accompanied by a Military Receivable Order (MRO) in
triplicate. The original copy will be delivered to the tenderer and the
duplicate sent to CDA concerned by the bank/treasury through the Focal Point
Branch. The triplicate will also be returned to the depositor.
While the Original copies of MROs sent by the depositor will be
received in Audit Section, the Duplicate copies of MROs(DMROs) along with Credit
Scrolls/ Schedule of Receipts will be received in Accounts Section. Since DMROs
are received faster from banks , its adjustment preceeds adjustment of OMROs.
The adjustments by Accounts Section and Audit section are carried out as
under:
Accounts Section- Adjustment of DMROs |
Remittance into Banks & Treasuries |
Reserve Bank Deposits-Defence |
0/020/80 (-) Ch |
0/021/00 (+) Ch |
Audit Section-Adjustment of OMROs |
Service Head |
Remittance into Banks & Treasuries |
(+) Rt |
0/020/80 (+) Ch |
While a closing balance of (+) Charge to 0/020/80 represents
adjustment of OMROs for which adjustment of DMROs are yet to be carried out by
Accounts Section, whereas closing balance of (-) Charge to 0/020/80 represents
adjustment of DMROs by Accounts Section for which adjustment of OMROs are yet to
be carried out by Audit Section.
At the end of the year, amounts for which credit scrolls/MROs
or RBI advice has not been received, the unadjusted amount is transferred as (+)
Receipt to 0/020/83-‘RBI suspense unclassified’. On receipt of credit scrolls/
MROs or RBI advice, 0/020/83 and 0/020/80 are relieved by (-) Receipt and
(-)Charge respectively. With the introduction of Focal Point Branch System, a
new suspense head known as “PSB suspense” has been opened under code head
0/020/76 to identify the wanting scrolls and advices relating to Public Sector
Banks(PSB). However the procedure for its booking and clearance remains the same
as applicable to 0/020/83.
Adjustment of 0/020/81 (Cheques & Bills)
All payments on behalf of Defence Services are either made at a
treasury or the bank by means of cheque etc drawn by officers of the Defence
Accounts Department and in certain cases by officers of Defense Services. Each
dealing branch of SBI and Associate bank will furnish to the Focal point
branch(FPB) daily scrolls supported by paid cheques/MROs. The dealing branches
of RBI will act as FPB and send their main scroll direct to CDA concerned. The
Focal point Branch of SBI will prepare Main Scrolls based on the daily scrolls
received from dealing branches and send them daily to CDA duly supported by paid
cheques/MROs. However this procedure is not applicable in respect of pension
transactions, where scrolls are sent direct to PCDA, Allahabad by the SBI
branches.
The daily scrolls will be received in the Accounts Section of
the CDA’s office and after agreeing with the monthly DMS total and total
reflected by RBI,CAS Nagpur, paid cheques/MROs are handed over to staff for
linking and pairing with schedule III. The adjustment carried out by Audit
section while issuing cheque and by Accounts section while carrying out
adjustment on receipt of debit scrolls/ paid cheques are as follows.
Audit Section -while issuing cheques |
0/020/81 (Cheques & Bills) (+)Receipt |
Service Head (+) Charge |
Accounts section- while adjusting debit scrolls/paid
cheques |
0/020/81 (-) Receipt |
0/021/00 (RB deposits) (+) Receipt |
At the end of the year, amounts for which debit scrolls/paid
cheques or RBI advice has not been received, the unadjusted amount is
transferred as (+) Charge to 0/020/83-‘RBI suspense unclassified’. On receipt of
debit scrolls/ paid cheques or RBI t advice, 0/020/83 and 0/020/81 are relieved
by (-) Charge to 0/020/83 and (-) Receipt to 0/020/81 respectively. With the
introduction of Focal Point Branch System, a new suspense head known as “PSB
suspense” has been opened under code head 0/020/76 to identify the wanting
scrolls and advices relating to Public Sector Banks(PSB). However the procedure
for its booking and clearance remains the same as applicable to
0/020/83.
Focal Point Branch
Scheme (FPB)
The Focal Point Branch Scheme( FPB) introduced from 1.10.93 is
a revised system of reporting, settlement and reconciliation of transactions of
non-Civil ministries such as Defence, Railways and Posts. In the earlier
procedure, all individual bank branches were sending scrolls with paid cheques
directly to the concerned Defence Accounting Circle(DAC) leading considerable
delay in its receipt and reconciliation . The revised procedure is intended to
make reconciliation work faster and easier. Under the revised procedure, each
Defence Accounting Circle( DAC) is accredited to one bank branch functioning as
FPB for all SBI branches as well as its Associated banks, which will be
co-located with DAC. The RBI branches will be acting both as dealing as well
Focal Point Branches and forward main scrolls and DMS to DACs on the prescribed
dates. The FPB will be receiving daily scrolls from dealing branches duly
supported by Cheques/MROs. These FPBs will prepare a main scroll each day in r/o
all scrolls received from all dealing branches as well as their own scrolls. A
copy of the main scroll will be returned to FPB by DAC duly certifying its
correctness/pointing out discrepancies within 24 hrs. The FPB will be reporting
the amount included in the main scroll to the SBI/GAD link Cell, Nagpur. A Date
wise Monthly Statement (DMS) will be prepared by FPB and sent to DAC by 3rd of
the following month, which will be returned by DAC duly certifying the
correctness/pointing out discrepancies. A copy of the certified DMS will be sent
to CGDA by DAC to reach them by 8th of the following month.
SBI, GAD/ Link Cells RBI branches will intimate the DAC the
monthly settlement account figure put through by them to RBI,CAS Nagpur. RBI,
CAS Nagpur will continue to send monthly closing balance statement to the DACs
by 20th of the following month. Since the Verified Date wise Monthly statement
(VDMS) is the mutually accepted document, it forms the basic document for
reconciliation of Government transactions handled by FPBs. The FPB Scheme does
not cover pension payments made through Public Sector Banks.