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Accounting in DOP

4.2.2 B

2

System of Accounts of DOP

• Accounts of DOP form part of general accounts of the Government of India;

• Accounts of DOP are built on the same general plan of accounts of the Government of India;

• DOP Receipts & Expenditure are recorded under various Major Heads-suitably divided & sub divided as per nature of transactions.4.2.2 B

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Part I Part II Part III

Consolidated fund Contingency fund Public A/Cs

Revenue Capital Debt Debt Dep. Remitt.

[Pub. Debt/Loans & Adv.]

Receipts Expenditure

Charged

Plan Non Plan

Voted

New Activity/ Existing

Scheme Establishment

General outlines of Accounts

4.2.2 B

4

Accounting Classification

• Six Tier accounting classification is adopted– Major Head – 4 digits ( function)– Sub-Major Head – 2 digits ( sub – function)– Minor Head – 3 digits ( Program)– Sub – Head – 2 digits ( Scheme) – Detailed Head – 2 digits ( Sub- Scheme)– Object head – 2 digits ( object head is primary

unit of appropriation )

4.2.2 B

5

Major Head – 3201 – Postal ServicesSub Major Head – 02 – Operation

Minor Head– 003 – TrainingSub Head – 01 – Operational Training

Detailed/Object heads(01) Salaries(02) Wages (03) Overtime Allowances(04) Pensionery Charges(06) Medical Treatment(11) Travelling Expenses(13) Office Expenses(14) Rent, Rates & Taxes(21) Supplies & Materials(26) Adv. Sales & Publicity.(28) Payments for prof. Service(50) Other Charges(64) Write off / losses

EXAMPLE

4.2.2 B

6

Main head and Demand units

Expenditure met from Revenue (Major Head 3201 – postal service)01- General operations02- Operations03 – Agency services04- Accounts & Audit05 – Engineering 06- Amenities to Staff07- Pension08- Stationary & Printing60 – Other expenses

Expenditure not met from Revenue ( Major Head 5201- Capital outlay on Postal services) 003 – Training101- Postal Network104 – Mechanization & Modernization of Postal Services202- Administrative Office203 – Staff Quarters204 – RMS Van205 – Civil Engineering800 – Other Expenditure

Major Head – 1201 – Postal Receipts

4.2.2 B

7

Non Plan Expenditure

Description Items included Description Items includedSalaries Pay , allowances,

honoraria, leave encashment

Rent, Rates & Taxes Rent for hired accommodation, municipal charges, municipal taxes

Wages Of laborers Supply & material Materials, supplies, stores , equipment

Over Time Allowance Advertising & publicity Commission to agents for sale, printing of publicity material, expend on fairs , exhibitions

Medical treatment Reimbursement of medical expenses

Professional services Charges on legal services, consultancy, remuneration to examiner’s, payments for service rendered

Domestic travel expenses

Travel/ conveyance expenses, TA/DA on travel

Office Expenses All contingent charge for the office operation

4.2.2 B

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Non Plan Expenditure ( ceiling Heads)

Ceiling HeadsWages Over Time Allowance

Medical Treatment Advertising, Sales and Publicity

Domestic Travel Allowance Office expenses

4.2.2 B

9

Basic guidelines for incurring expenditure

1. The expenditure should always be proportionate to the total allotment.

2. By the end of December, 67% of the allotment should be spent.

3. Divisions are not allowed to spend more than 33% during the last quarter unless they receive any fresh allotment in the final grant.

4.2.2 B

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Basic guidelines for incurring expenditure

1. When excess funds are available, all the funds should be surrendered to RO before 10th of March. The surrendered funds can be utilised by the needy divisions/regions.

2. Rush of expenditure during the final stage of financial year should be avoided.

3. Whenever expenditure exceeds the allotment, the divisional head should proper action to get additional funds from RO.

4. In case of emergency, the DO has to address RO/Budget and get the clearance for spending any expenditure above the allotment.

5. Otherwise, the divisional head will be held responsible for such excess expenditure.

4.2.2 B

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Appropriation of Accounts

1. The powers to appropriate funds within the object head rest with Chief PMG.

2. The appropriation at Circle level is done at the time of preparation of AFG statements.

3. Hence, the Divisional Heads should be more careful at the time of preparation of AFG and they have to surrender the unwanted funds. Such funds can be properly appropriated and allotted to divisions/regions by the Chief PMG.

4. Even after appropriation, if excess funds are available, that will be surrendered directly to Directorate by the Circle Budget.

5. Chief PMG is not competent to appropriate funds under OTA, Railway Haulage Charges, Pensionery funds, funds under printing heads.

4.2.2 B

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• Thanks

4.2.2 B