CASH OFFICE.pptx

procedure

1. HEAVY VEHICLES FACTORY, AVADI CASH OFFICE

2. Balancing of Cash:  — Balancing of Cash Receiving Register: +After receipt of total cash during the day the ‘Cash Receiving Official’ shall ( i ) aggregate the amount after the last entry in the ‘Public Fund Account’, (ii) write down the total amount in words and figure under the summation and ensure that it is okay and the figure agrees with the computer generated supplementary figure.   ROLES AND RESPONSIBILITIES OF CASH OFFICE

3. —  Balancing of Cash Payment Register: +Paying Cash shall accomplish the following formalities: a)Make date-wise entry of all payment Vouchers in “PFA” in serial order. b)Make sure that total amount of such payments of the day agrees with the total amount shown in the parallel computer generated supplementary. c)Write down the total amount of cash paid during the day both in words and figures in ‘PFA’ and authenticate the same by full signature. ROLES AND RESPONSIBILITIES OF CASH OFFICE

4. Writing and Checking of Cash Balance Book: —After Balancing of ( i ) PFA by the respective Cash Officials, Cash In-Charge shall prepare and sign the Cash Balance Book and shall submit the same to the Cash Officer, who, upon satisfaction about its accuracy and genuineness shall authenticate the same by his / her countersignature thereon. ROLES AND RESPONSIBILITIES OF CASH OFFICE

5. Checking / Closing of Cash and Writing of Cash Position Memo: —At the end of day’s Cash transaction Cash In-charge shall Count, Sort and Balance the remaining cash (after receipt & payment) and shall prepare and sign the Cash Position Memo. However, Cash Officer shall check and confirm that the figures mentioned in the Cash Position Memo agree with the total figures of ( i ) PFA ii) Daily Affairs (cash in hand figure) and, upon satisfaction, shall authenticate the Cash Position Memo by his full signature / countersignature. ROLES AND RESPONSIBILITIES OF CASH OFFICE

6. Safe Custody of Cash (after transaction) Over Night: —Cash balance of the counter at the end of a day together with Cash in Safe (if any) shall be preserved in the ‘Fire Proof Iron Safe’ of (Chest) Vault for Safe-Triple-Custody until next reopening of the Vault. But before storing cash in the Iron Safe, the Custodian shall additionally ensure that entire cash i.e. Closing Balance of the day as per Cash Position Book (Balance Cash of Cash Counter and remaining Cash Iron Safe) are accurate and correct.   ROLES AND RESPONSIBILITIES OF CASH OFFICE

7. Vault Register:                  —Cash In-Charge shall Maintain Vault Register for keeping record of Cash Movement to and from the Iron Safe. Denominations of Cash-in Hand mentioned in the Cash Balance Book must match with the denominations recorded in the Vault Register at the end of day’s transaction. ROLES AND RESPONSIBILITIES OF CASH OFFICE

8. Cash-in-safe, Cash-on-Counter and Cash-in- Tansit  Limit: —FY must handle cash within Cash-in-Safe, Cash-on-Counter and Cash-in-Transit Limit duly approved by Head Office. Excess cash over the approved limit shall not be held in the FY at any time either on Counter or in Iron Safe. However, the Cash In-charge, under due record &  acknowledgment in the relevant register, shall immediately move the Excess Cash of the counter, to the Strong Room during transaction hours.   ROLES AND RESPONSIBILITIES OF CASH OFFICE

9. Cash Enclosure: —Access of unauthorized person(s), including officials of other departments, to the Cash Enclosure of the FY, is strictly prohibited. Only the officials working in the Cash Department shall have access to the Cash enclosure   ROLES AND RESPONSIBILITIES OF CASH OFFICE

10. Safety / Security of Strong Room During  Transaction Hours: —Strong Room / Vault must be kept Closed / Locked during transactions hours under Joint Control of two key holders and both the Joint Controllers must be present whenever the strong room is re-opened during the Day / Office Hours. Cash In-charge must keep his / her hand balance (exceeding counter limit) in a steel box under lock & key in the strong room. ROLES AND RESPONSIBILITIES OF CASH OFFICE

11. Maintaining Vault Limit: —FY has to ensure the vault/cash in safe limit as set by the Head Office time to time. Cash in excess of vault has to be deposited immediately with cash feeding branch.   Security Measure of Cash-in-Transit: —FY shall ensure adequate and effective security measures while carrying cash to and from link branches of the Bank. ROLES AND RESPONSIBILITIES OF CASH OFFICE

12. Surprise Verification of Cash: —Head of Office shall make surprise verification by physical counting of entire Cash-in-Safe at least once a month and shall confirm its accuracy with the remarks “Entire Cash Checked and Found Correct” on the particular page of Cash Position Book under his / her signature. Recording Denomination of Note(s) / Coin(s): —Cash at Vault (In Hand, In Iron Safe / Vault and On Counter is to be noted down denomination-wise in Cash Position Book and that denomination must go with the denomination to be recorded in the Vault Register at the end of transaction of the day. Again, cash official shall record denominations of all the cash received and paid daily on the back of each respective credit and debit voucher. ROLES AND RESPONSIBILITIES OF CASH OFFICE

13. Before receiving cash from depositors in Pay-in-Slip / Credit Voucher the concerned cash official(s) shall: Verify / check the  (a)  Title of Account,  (b)  A/C Number,  (c)  Amount in Words and Figures,  (d)  Date, etc. written on Pay in Slip / Credit Vouchers with the records of computer program and shall satisfy on their correctness and genuineness. Carefully check and Count the Currency Notes. Write down denomination. Affix Cash Received stamp. Make entry of particulars of the Cash Received Verify entries / Particulars of Pay-in-Slip / Credit Voucher with those of the Cash Receiving Register. Keep Cash in the Drawer of Cash Counter under lock and Key (within Counter limit) during transaction hours. RECEIPT OF CASH

14. While Paying Cash against debit instruments namely  Cheques , Demand Drafts (DD), Pay Order (PO), Pay Slip (PS), SDR, FDR, etc. and also against other debit instruments as well as Cash Debit Vouchers, the following formalities have to observed: Verify Genuineness & Authenticity of the instrument, make posting, passing & cancellation of the Cheques and, thereafter, count relevant cash and note down denominations there against on reverse/ back side of respective instruments/ vouchers. Obtain 2nd signature of payee/ recipients on the back of the instruments, affixing stamp and cancellation of instruments. Enter particulars of instruments/ Cheque in Cash payment register in serial order and write down that serial number in a red circle to be made on the face of the instruments. And finally after completion of all above formalities the Cash official, upon satisfaction, shall pay/ handover cash against the instrument/ cheque to the payee/ Recipients. However, paying cash official(s) shall hold all paid debit instrument(s) until cash is closed and handed over to Cash-in-charge at the close of business. PAYMENT OF CASH

15. Implemented in HVF w.e.f . 01.04.2019 Revised and updated Cash Drill Procedure

16. PREAMBLE The cash drill procedure lays down the procedure that will apply to the management and accounting of the public fund and other non-government accounts maintained in the ordnance factories and offices under DGOF where cash handling exists. The procedure combines features of the original cash drill procedure of 1947 and incorporates the provisions of the General Financial Rules 2017, The Delegation of Financial Power Rules. The Central Treasury Rules, The Receipt and Payment Rule, 1983 and best practices from the organisations such as the Defence Accounts Department CASH DRILL PROCEDURE, 2019

17. Duties and Responsibilities: - Sr.GM/GM/ HoD would be responsible for seeing that there is adequate control over the cash section and will be responsible for ensuring that there is adequate control over the cash section and the existence and proper functioning of an effective system of control over the custody, receipt and disbursement and accounting of cash. CASH DRILL PROCEDURE, 2019

18. The Sr.GM/GM/ HoD will ensure that there is only Public Fund Account of the factory. The Sr.GM/GM who is the head of department and HoDs of other establishments will authorise an officer, normally the Joint General Manager, Deputy General Manager or the Works Manager looking after the administrative sections of the factory or if no such officer is available any other officer of similar rank as Head of Office. Will authorise a gazetted officer, not below the rank of Assistant Works Manager, to function as Drawing and Disbursing Manager who will be the Officer-in-charge of cash officer and will ensure strict compliance of all the principles contained in Rule 13 of the Receipts and Payment, 1983 CASH DRILL PROCEDURE, 2019

19. He will direct the submission of the monthly correctness certificate by the Head of Office by the 15 th of every month for the previous month and take corrective action as may be deemed necessary. The Sr.GM/GM/ HoD will depute an IOFS officer not below the rank of Works Manager to conduct surprise checks of the cash in hand and as shown in the cash book. The date and time of the check will be submitted to the Sr.GM/GM/ HoD by the officer nominated for the purpose of the check personally. The results of the check will be entered in a register maintained in the office of the Sr.GM/GM/ HoD for the purpose. CASH DRILL PROCEDURE, 2019

20. Quarterly inspection check by Sr.GM/GM/ HoD should be done to subscribe himself of proper functioning of the Cash Drill Proceudure over and above the Quarterly Audit Board report in the prescribed format. Will be the permanent advance ( imprest ) Holder and will submit the annual certificate regarding Recoupment of the amount of imprest . CASH DRILL PROCEDURE, 2019

21. Will acquaint himself well with the executive powers associated to the post. Will Authorise a gazetted officer, not below the rank of Assistant Works Manger, to function as the Drawing and Disbursing officer who will be the officer in charge of cash or the cash officer and will ensure strict compliance of all the principles contained in Rule 13 of the Receipts and Payments rules, 1983 Will publish a separate factory order / office order, on approval of HoD indicating the name of the officer, as DDO/Cash Officer and that he will exercise the powers contained in the Cash Drill Procedure and compliance of Receipts and Payments Rules, 1983. The Head of Office (HOO)

22. Will Forward the specimen signatures of the DDO/Cash officer to the Local Accounts Office (LAO) / Branch of the Bank where the Public Fund Account is maintained. Will ensure that the Cash Officer and the Cashier undergo training on the principles and procedures of accounting for cash either at departmental training establishments such as NADP, OFIL or at any suitable institute CDP, 2019

23. Will conduct a check of the cash book on the last day of every month in accordance with checkpoints: - Physical cash to tally with Cash Book Whether the cash book is up-to-date. Whether the opening balance has been correctly carried forward from the previous month Whether receipt entries have been made for corresponding payment entries. Whether imprest payments are being recouped on time CDP, 2019

24. Whether balance sheet and bank statement are up-to-date The oldest liability as per balance sheet. Will conduct a test check as to whether vouchers are being signed by the DDO/Cash Officer. Whether Govt. money has been credited through e-MRO at the first opportunity. CDP, 2019

25. Cashier Will be responsible for writing the cash book in accordance with the procedure prescribed in CDP. Will be responsible for the safe custody of the cash book all the vouchers and other documents connected with its maintenance. On being authorised to draw cash from the Public Fund Account, he will be responsible for receiving correct cash from the bank. Maintain the cash book as per the CDP, CDP, 2019

26. The Central Government Account ( Receipts and Payments) Rules contain rules regulating the custody of the Consolidated Fund of India and the Contingency Fund of India, the payment of moneys into such funds, the withdrawal of money there from, the custody of public moneys other than those credited to such funds received by or on behalf of the Government of India, their payment into the Public Account of India and the withdrawal of moneys from such Account in and others matters connected therewith or ancillary thereto. RECEIPTS AND PAYMENT RULES

27. General Financial Rules (GFRs) are a compilation of rules and orders of Government of India to be followed by all while dealing with matters involving public finances. These rules and orders are treated as executive instructions to be observed by all Departments and Organisations under the Government and specified Bodies except otherwise provided for in these Rules. GENERAL FINANCIAL RULES, 2017

28. Rule 154 of the GFRs state the process of procurement of goods without quotation. Purchase of goods upto the value of Rs. 25,000 (Rupees twenty five thousand) only on each occasion may be made without inviting quotations or bids on the basis of a certificate to be recorded by the competent authority in the following format. “I, am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.” • GENERAL FINANCIAL RULES, 2017

29. Rule 155 of the GFRs state the purchase of goods by Purchase Committee. Purchase of goods costing above Rs. 25,000 (Rupees twenty five thousand only) and upto Rs.2,50,000/- (Rupees two lakh and fifty thousand only) on each occasion may be made on the recommendations of a duly constituted Local Purchase Committee consisting of three members of an appropriate level as decided by the Head of the Department. The committee will survey the market to ascertain the reasonableness of rate, quality and specifications and identify the appropriate supplier. Before recommending placement of the purchase order, the members of the committee will jointly record a certificate as under. “Certified that we, members of the purchase committee are jointly and individually satisfied that the goods recommended for purchase are of the requisite specification and quality, priced at the prevailing market rate and the supplier recommended is reliable and competent to supply the goods in question, and it is not debarred by Department of Commerce or Ministry/Department concerned GENERAL FINANCIAL RULES, 2017