MPDD making of manual budget and finance and expenditure in the departements of education.pptx

details of budget finance and dealing accounts in education departement.

1. General Characteristics of Financial Rules, Financial Management BY Ashiq Hussain Aulakh M.A Sociology, MBA(Finance), L.L.B, M.Phil. Management sciences(Gold Medalist) Secretary(Retd) Ex.Member Inquiries S & GAD Advocate High court : (Consultant Service Matters) Cell: 0333-4506602

2. FINANCIAL MANAGEMENT Financial management refers to the process of planning, organizing, directing, and controlling financial resources to achieve specific goals and objectives . It involves : Financial planning: Setting financial goals and objectives . Budgeting: Allocating resources to achieve those goals . Financial analysis: Evaluating financial data to make informed decisions . Risk management: Identifying and mitigating potential financial risks . Investment and funding: Managing investments and securing funding sources . Financial reporting: Providing financial information to stakeholders . Cash flow management: Managing inflows and outflows of cash.

3. CONT… Effective financial management helps individuals, businesses, and organizations :- Make informed financial decisions- Optimize financial performance- Achieve financial stability and security- Reach long-term goals .It's like navigating a ship through waters, ensuring it reaches its destination safely and efficiently, while avoiding financial storms and making adjustments along the way!

4. CONT… PUBLIC FINANCE Public finance is the study of the role of the government in the economy. It is the branch of economics which assesses the government revenue and government expenditure of the public authorities and the adjustment of one or the other to achieve desirable effects and avoid undesirable ones. Resource generation, resource allocation and expenditure management (resource utilization) are the essential components of a public financial management system Public expenditure. The following subdivisions form the subject matter of public finance: Public revenue Public debt Financial administration Federal finance Improves the efficiency of financial operations. Enables better strategic planning. Enables effective cash flow. divisions form the subject matter of public finance. Manages regulatory, budget, and grant compliance requirements to optimize taxpayer funds….

5. Public Financial Management

6. Why Financial Management

7. GENERAL PRINICPLES AND RULES Maintenance of Accounts---Cash B ook Every officer on behalf of the government should maintain a cash book in PFR Form 1 or TR Form 3. All monetary transactions should be entered in the cash book as soon as they occur, and attested by the head of the office The cash book should be closed and balanced on each day and the head of the office will cheque the totaling of the cash book At the end of the month, the head of the office should verify the cash balanced in cash book and certify its correctness with dated signature Pen through the incorrect entry and inserting the correct one in red ink between the line Officer should initial with date every such correction

8. Payments General principles and restrictions relating to expenditure No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage. Government revenues should not be utilized for the benefit of a particular person or section of the community. That money actually paid is under no circumstances kept out of account a day longer than is absolutely necessary even if it has been paid without proper sanction. That no money is withdrawn from the treasury unless it is required for immediate disbursement or has already, been paid out of the permanent advance and that it is not permissible to draw advances from the treasury for the execution of works the completion of which is likely to take a considerable time .

9. Drawl of Money from the Treasury Bills Cheques All payments, which Government servants authorized by draw cheques have to make, should as far possible be made by cheques. A separate cheque book should be used for each head treasury or sub-treasury. Each cheque book must be kept under lock and key in the personal custody of the drawing officer, who, when relieved, should take a receipt for the correct number of cheques made over to the relieving Government servant. The loss of a cheque book or blank cheque forms should be notified promptly to the Treasury Officer with whom the disbursing officer concerned has a drawing account. As a rule no cheque should be drawn until, it is intended to be paid away, and cheques drawn in favour of contractors and others should be made over to them by the disburser direct.

10. Cheques It is a serious irregularity to draw cheques and deposit them in the cash chest at the close of the year for the purpose of showing the full amount of grant as utilized Whenever a cheque is drawn, and entered in the cash book, but not paid out on the day on which it is drawn, a note must be made in the cash book against that entry explaining why it has not been possible to deliver the cheque to the payee. Cheques remain current for three months only after the month of issue . When it is necessary to cancel a cheque, the cancellation should be recorded on the counterfoil, and the cheque, if in the drawer's possession, should be destroyed .

11. Cont… If the cheque is not in his possession he should promptly request the Treasury Officer to stop payment of the cheque and on ascertaining that payment has been stopped, he should write back the entry in his cash book by exhibiting the amount of the cheque as a minus figure on the payment side in the "Bank or Treasury" column. A counter-reference should be given in the cashbook, against the original, to the second entry of the cheque. A cheque remaining unpaid from any cause for twelve months from the date of its issue should be cancelled and its amount written back in a similar manner. If a disbursing officer be informed that a cheque drawn by him has been lost, he may address the Treasury Officer drawn on forwarding for signature a certificate in the form given below. If, after search through the lists of Cheques paid, the Treasury Officer finds that the cheque has not been cashed, he will sign and return the certificate. The Disbursing Officer will enter in his account the original cheque as cancelled and may issue another.

12. Vouchers for departmental payments As a general rule every payment, including repayment of money previously lodged with Government, for whatever purpose, must be supported by a voucher setting forth full and clear particulars of the claim. Every voucher must bear a pay order, signed or initialed, and dated, by the responsible disbursing officer. This order should specify the amount payable both in words and figures. Cashiers and others authorised to make pay disbursements on passed vouchers should make no payment without a proper order of the responsible disbursing officer recorded clearly in ink on the bill or other voucher. No payment should be made on a voucher or order unless it is signed by hand and in ink.

13. Claims to arrears or increase of pay or allowances In the case of claims, which are more than one month old, the preferring officer shall state in the bill the reason for the delay. Arrear claims to travelling allowance preferred after the limits of time, 6 months, will not, except for very special reasons be entertained (A claim presented for payment 6 months or more after the date of pre-audit by the Accountant-General will again require the sanction of the Accountant-General for its payment)

14. CONTROL OVER ACCOUNTS It is not sufficient that a Government servant accounts should be correct to his own satisfaction. He has to satisfy not only himself but also the Accountant-General that a claim which has been accepted is valid, that a voucher is a complete proof of the payment which it supports, and that an amount is correct in all respects. It is further essential that the records of payments, measurement and transactions in general must be so clear, explicit and self-contained as to be producible as satisfactory and convincing evidence of facts, if required in a Court of Law.

15. Defalcations and losses Responsibility For Losses Sustained Through Fraud Or Negligence Of Individuals Every Government servant should realise fully and clearly that he will be held personally responsible for any loss sustained by Government through fraud or negligence on his part, and that he will also be held personally responsible for any loss, arising from fraud or negligence on. Report To Audit And Accounts Department And Departmental Superior Authority Losses occurring in offices, as soon as they occur or come to notice, should be at once reported, through the immediate departmental superior of the Government servant reporting the loss, to the Head of the Department concerned, with a statement of the steps taken in matter. The report on a loss occurring in the office of a Head of a Department may be submitted direct to Government. It is always open to a Head of a Department to obtain the advice or opinion of the Accountant-General/Director Audit and accounts.

16. Inter-government And Inter-departmental Transactions Inter-Government Transactions In the case of transactions between the Punjab Government and another Government (Provincial or Federal) adjustments shall always be made if required by or under the provisions of the Constitution of the Islamic Republic of Pakistan. Pay and Allowances (other than leave salary) of Government servants transferred temporarily or permanently from one Government to another. Adjustments With Outside Bodies Interdepartmental Adjustments

17. Pass Book It should be the duty of the administrator of the fund to see that the pass book is sent to the Treasury Officer at least once a month and balanced. The pass book should remain in the personal custody of the administrator and not of the official concerned either with the paying in or paying out of money of checking the account. The Treasury Officer is responsible for seeing that the entries are correctly made and at the end of each month the entries on each side of the pass book are totaled and the balance struck and agreed with the treasury account. The book should then be signed by the Treasury Officer .

18. THANKS