Simplified Accounting Structure for PRIs

HIPA-SIRD, Shimla on 2nd December 2009

Local Bodies DivisionOffice of Comptroller & Auditor General of India

What is New?

• Simple, robust, and easy for functionaries at PRI level

• Generation of Financial Reports through computers

• Enables networking of data

• 2-Part Accounts:

– Part-I: Receipts & Expenditure

– Part-II: PFs, Loans, Deposits, Advances, etc.

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3-tier classification

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• Some major GoI schemes would additionally need 2-digit sub-heads e.g.:

Exceptions

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Receipts Payments

1601- Grants in aid 2210-Health and Sanitation

101-Grants from GOI 101-Primary Health Centre

15- NRHM 15-NHRM

02- Wages (object head) 02-wages(object head)

Added Features

• Major GoI Schemes: distinct 2-digit subheads• State Schemes: 2-digit alfa-numeric subhead• Common expenditure: Standardized object heads• New object heads: can be opened by Panchayats• 23 Major Heads to cover 29 functions• 12 functions clubbed under 6 Major Heads• ‘2206 –Market and Fairs’ : to PRI market and fairs

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Additional Heads for useat Panchayat level800 Other Receipts

800 Other Expenditure

901 Share of net proceeds assigned to Panchayats

7610 Loans to Panchayat Employees

8011 Insurance and Pension Fund

8550 Civil Advances

8009 Provident Fund

8443 Civil Deposit

2049 Interest payments2071 Pension and Other Retirement Benefits

2515 Panchayati Raj Programmes

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Other Heads

• 8658 Suspense Accounts

• Major Head ‘4000- Capital Receipts

• Capital Heads relate to Revenue Heads

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Preparation of Accounts

• Budget in prescribed (new) classification.

• Accounts: on cash basis

• Refunds of revenues, re-imbursement of expenditure

– to be accounted as reduction of receipts/expenditure of the current year

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Data through IT Applications

• Progressive figures of respective Major Heads

• Total receipts

• Total revenue and capital expenditure

• Progressive figures under each part of accounts

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Addl Formats to facilitate Switch Over to Accrual System1. Monthly/Annual Receipts & Payment Accounts2. Consolidated abstract register3. Reconciliation Statement with Bank and Treasury4. Statement of Receivable and Payable5. Register of Immovable of Property6. Register of Movable property7. Inventory Register8. Register of Demand, Collection and balance

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THANK YOU

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MajorMajorHeadHead

Nomenclature Nomenclature FunctionsFunctions

24032403 Animal Husbandry, Animal Husbandry, Dairying Poultry and Fuel and Dairying Poultry and Fuel and FodderFodder

Animal Husbandry, Dairy & PoultryAnimal Husbandry, Dairy & Poultry Fuel & FodderFuel & Fodder

28512851 Village & Village & Small Scale IndustriesSmall Scale Industries

Small Scale Industries including Food Processing Small Scale Industries including Food Processing IndustriesIndustries

Khadi, Village and Cottage IndustriesKhadi, Village and Cottage Industries

22022202 EducationEducation Education including Primary & Secondary schoolsEducation including Primary & Secondary schools Adult & Non-Formal EducationAdult & Non-Formal Education

22052205 Art, Culture Art, Culture and Librariesand Libraries

LibrariesLibraries Cultural ActivitiesCultural Activities

22102210 Health Health and Family Welfareand Family Welfare

Family WelfareFamily Welfare Health including Hospitals, Primary Health Centres and Health including Hospitals, Primary Health Centres and

DispensariesDispensaries

24062406 ForestryForestry Social Forestry, Farm ForestrySocial Forestry, Farm Forestry Minor Forest ProduceMinor Forest Produce

Similar Nature Functions

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