PAM VOL-I Chapters I & 2.pdf

AAO LDCE 2023 Exams

1. PAM Vol.-I
(2
nd
Edition 2022)
Chapter-I & II
for
AAO LDCE-2023
20-01-2023
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2. POSTAL ACCOUNTS MANUAL(PAM) (VOL.-I)
CH.-I Definition and
General Systems of
Accounts.
CH.-II Organization and
Control .
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3. CHAPTER-I
DEFINITIONS ANG GENERAL SYSTEMS OF ACCOUNTS

DEFINITIONS :

1.01(a):‘AccountingAuthority’ meanstheDirectorofAccounts
(Postal)/GeneralManager(Postal,AccountsandFinance)who
exercisesaccountingfunctions.

1.01(b):‘AccountsOfficer’meansanyofficersubordinateto,orunder
thesuperintendenceofChiefAccountingAuthorityortheAccounting
Authoritywhoexercisesaccountingfunctions.

1.01(c):‘AuditOfficer’meansanyofficersubordinateto,orunderthe
superintendenceoftheControllerandAuditorGeneralwhoexercises
auditfunctions.

1.01(e):‘BranchAuditOffice’ meanstheO/otheDirectorof
Audit/AuditOficerInchargeinindependentchargeoftheP&TAudit
Office.

1.01(f):‘BranchPostalAccountsOffice’meanstheO/ooftheDA(P)or
GM(PA&F)inchargeofthePostalAccountsOfficeoftheCircle.

1.01(h):‘ChiefAccountingAuthority’ means‘Secretaryofthe
DepartmentofPostswithoverallcontroloftheaccountingfunctionsof
theDepartment.
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4. CHAPTER-I
DEFINITIONS ANG GENERAL SYSTEMS OF ACCOUNTS
InitialAccounts:-
1.02: TheChiefAccountingAuthorityisresponsiblethatsuitableaccountsare
maintainedbytheofficerssubordinatetohimintheprescribedformsofinitial
orotheraccountsorofbills.
1.03:TheAccountsofthePostalWingisdoneonthebasisofCommercialAccounting.

ACapitalAccountforAssets.

Allexpensestobechargedandallrevenues,eventootherDepartments,tobecredited.
1.04:Revenuerealizationsandworkingexpensesotherthaninterestchargesofthe
Departmentarebookedunderthemajorheads1201-PostalReceiptsand3201-
PostalServicesrespectively.Incaseexpensesareformorethanonebranch,thenthis
shouldbeapportionedonsomebasis.
1.05:hefinancesoftheDepartmentformpartofthegeneralfinancesoftheCentral
Government.TheDepartmenthastomeetalltheliabilitiesfromitsown
revenues.ThesurplusordeficitintheworkingoftheDepartmentis
appropriatedtoandfromthePostalCapitalReserveFund.TheProfitandLoss
AccountoftheDepartmentisarealaccountinsidetheGovernmentaccounts
andincludestheinterbranchadjustments.
1.06:TheProfitandLossAccountispreparedannuallyfromthenetProfitandLoss
accountintheLedgerafterthefinalclosureoftheAccounts.Itshowsthefinal
resultsoftheworkingoftheDepartmentduringtheyear.
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5. CHAPTER-I
DEFINITIONS ANG GENERAL SYSTEMS OF ACCOUNTS
InitialAccounts:-
1.07:EachHeadPostOfficeformsaprimaryAccountingUnitsforsubmitting
anaccountofallreceiptsanddisbursementsincludingofallit’sreceiptsand
disbursementsofofficessubordinatetoit.
TheprimaryaccountsmaintainedbytheHeadPostOfficesare:-
(a)TheTreasure’sCashBook
(b)TheHeadOfficeSummary
(c)TheHeadOfficeCashBook
1.08:Accountarefrozenbythe5
th
ofthefollowingmonthandGLwisefigure
senttoPAO
1.09EachHeadRecordOfficewhichformsanaccountingunitintheRailwayMail
ServiceisresponsibleforrenderingtotheCircleAccountsOfficeconcerned,a
monthlye-accountsreturn.
.
.
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6. CHAPTER-I
DEFINITIONS ANG GENERAL SYSTEMS OF ACCOUNTS
CompilationofaccountsinCirclePostalAccountsOffice:-
1.10:AccountsofHPOs,DDO-wiseare pushedtoPFMSonT+3 basis(transaction
date+3days).Atthecloseofaperiod,monthlyCGAreportisgeneratedand
thedatainthemonthlyCGAreportiscrosschecked&comparedwiththedata
sopushedtoPFMS.Anydifferencebetweenthefiguresisanalyzedand
variationifanyshallbemadeGLwiseastransferentriesinPFMS.Attheend
ofthemonth,PAOshallconsolidatetheaccountsinPFMSafterincorporating
necessaryTransferEntrieswhichflowstoe-Lekha.
CompilationofaccountsinDirectorate:
1.11:ThePostalAccountsWingofHQofficeshallsubmitthemonthlyaccountsinPFMSwith
digitallysignedcertificateandalsosubmittheaccountsine-LekhaforDOPasawhole.
1.12:ThePostalAccountsWingofHQofficealsocompilestheannualaccountsofthe
DepartmentofPostsforincorporationintotheCombinedFinanceandRevenueAccounts ofthe
CentralGovernment.ItisalsorequiredtoprepareAnnualAppropriationAccountsrelatingtothe
Department.
Note:EachCirclepreparesCircleAbstractandDte.preparesGeneralAbstract(after
consolidationofallCircleAbstract)andsubmitstoCGAOffice.
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7. CHAPTER-I
DEFINITIONSANGGENERALSYSTEMSOFACCOUNTS
1.13:TheMinistryofFinancehastopreparetheAnnualFinanceAccounts
ofCentralGovernment.TheseAccountsrepresenttheaccountsofthe
receiptandpaymentsoftheGovernmentfortheyear,togetherwiththe
financialresultsdisclosedbytheRevenue&Capitalaccounts,the
accountsofthepublicdebt&theliabilitiesandassetsofthe
Governmentconcernedasworkedoutfromthebalancesrecordedinthe
accounts.ThedutyofpreparingtheFinanceAccountsrelatingtothe
UniondevolvesontheMinistryofFinanceandallmaterialsinrespectof
thePostalDepartmentmustbefurnishedtotheMinistryofFinancein
suchformasisprescribedbytheMinistryforincorporationintothe
FinanceAccountsandtheresponsibilityforthefactsandfigures
containedinthematerialsofurnisheddevolvesontheSecretary,
DepartmentofPosts,whohasbeendeclaredastheChiefAccounting
AuthorityforthePostalWingoftheDepartment.
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8. CHAPTER-I
DEFINITIONS ANG GENERAL SYSTEMS OF ACCOUNTS

1.14.ThemaindutiesofanAccountingAuthorityare:-

(a)Tocompilee-accounts ofallthereceiptsand
disbursementsofhisCircleAccount.

collectaccountsofallreceiptsanddisbursementsofhis
CircleofAccount,

(b)TotransfertootherAccountsCircles ,theitems
pertainingtothemthroughsystemandadjustinhis
accounts,theitemstransferredtohimbytheother
AccountsOffices,and

(c)Togenerateamonthlydetailede-account foritsCircle
andforwardthesametothePAWingoftheheadquarter
office.
Thedutiesofpreparingamonthlydetailedaccount(under
majorheads)oftheDepartmentandsubmittinganextract
thereoftotheMinistryofFinanceandtheCGA,devolvestothe
DirectorGeneral.
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9. CHAPTER-I
DEFINITIONS ANG GENERAL SYSTEMS OF ACCOUNTS

1.16:TheGeneralManager(F)/Directors/DDA(P)aresubordinatetotheHoCandtheDGin
allmattersaffectingaccounts.Theyshouldnotbeallowedtoopenmanuscriptheads.

1.17:TheCirclePAOsubordinatetoDGisresponsibleformaintainingandclearingo/s
balancesrelatingtoreceivables,payables,DDR(Debt,Deposit&Remittance)headsandall
PublicHoA.

1.18:ReceiptsandexpenditurerelatingtoDe
ptofPostsarerecordedunderthe
followingmajorheads:

0049InterestReceipts

1201PostalReceipts

2552RevenueExp.NE

2049InterestPayments

3201PostalServices

3465GrantstoIPPB/Revenue

4552CapitalExp.NE

5201CapitalOutlayonPostalServices.

5465IPPB–Capitaloutlay
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10. CHAPTER-I
DEFINITIONSANGGENERALSYSTEMSOFACCOUNTS

1.19:The detailed classification of account heads inclusive of Debt and
Remittance heads used in the Departmental Accounts is given in the List
of Account Heads of the Postal Receipts and Disbursements, vide
Appendix 5

1.20:The transactions of the Department of Posts at offices and branches
of the Reserve Bank are distinguished from other Central transactions in
the initial accounts and are classified separately by each Circle Postal
Accounts Office. These transactions are taken against the Postal Accounts
in the books of the Reserve Bank direct.

IGA:

1.21: The instructions regulating the conditions under which a
Government or a department of a Government may make charges for
services rendered or articles supplied by it and the procedure to be
observed in recording such charges in the accounts are laid down in
Chapter 4 of the Account Code, Volume I. The above instructions are
applicable mutatis mutandis to the Department of Posts as well.
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11. CHAPTER-I
DEFINITIONSANGGENERALSYSTEMSOFACCOUNTS

1.22:UnlessadifferentprocedureisprescribedinthisManual,thegeneralrulesof
classificationlaiddowninArticles29to41oftheAccountCode,VolumeI,applymutatis
mutandistothetransactionsoftheDepartmentofPosts.

1.23:BroadlythetransactionsoftheDepartmentofPostsfallunderthreegroupssuch
as(i)RevenueReceipts(1201)(ii)WorkingExpenses(3201)(iii)CapitalOutlay(5201)

1.24:TheMajorHead1201PostalReceiptsisdividedintoSubMajorHeads
whicharetechnicallycalledAbstracts.TheMajorHead3201PostalServices
hasSubMajorHeadandanumberofminor,sub-detailedheads.Eachsub
divisionhasanumberofunitsunderitwhichcorrespondstothesecondary
unitsofappropriationviz.salaries,wages,travelexpensesetc.Eachsuch
unitisfurthersubdividedintoanumberofdetailedheads.TheCapital
Head,5201/5465-CapitalOutlayonPostalServicesisalsosimilarlydivided
intoSubMajor,Minor,andDetailedheads

1.25:SubjecttotheinstructionscontainedinArticle27oftheAccountCode,
VolumeIandtherulethereundertheDirectorGeneral(Posts)mayat
hisdiscretionopenalltheprescribeddetailedheadsandwhennecessary,
openanewone,ifaprescribedheadisnotfoundsuitable.Anychangein
thearrangementofheadsotherthandetailedheadsrequirestheapprovalof
the Ministry of Finance
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12. CHAPTER-I
DEFINITIONSANGGENERALSYSTEMSOFACCOUNTS

1.26: The role of Pr.CCA/CCA/CA as per the revised Charter of Integrated
Finance scheme issued by CGA, Ministry of Finance is in Apendix-1.
(i) Receipts, Payments and Accounts:
(ii) Financial Management Systems:
(iii) Internal Audit/Performance Audit:
(iv) FRBM (Fiscal Responsibility and Budget Management):
(v) Expenditure and Cash Management:
(vi) Non-Tax Receipt:
(vii) Monitoring of Assets and Liabilities:
(viii) Accounts and Audit:
(ix) Budget Formulation:
(x) Outcome Budget:
(xi) Performance Budget:
(xii) Reporting System -Annual Finance Report and Annual Outcome and
Systems Report:
(xiii) Interaction between Ministry of Finance and the Fas:
(xiv) Annual/ Five Year Plans:
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13. Preparation of Monthly Accounts in PAO

InPre-CSIregime,Postmaster/Sr.PostmasterusedtosendtheCash
Accounti.e.astatementofmonthlyreceiptandpaymentinrespectofthe
eachunit.

HeadPostOfficewastheprimaryaccountingunit.

Alongwithcashaccounta hostofbiils/schedules/voucherswerealso
sent.

UnclassifiedReceiptandUnclassifiedPaymentwerealsosentwhichwere
classifiedintoproperheadsofaccountsinPAsections.

IntheCashAccount,therewasaCashBalanceReport(CBR) whereinthe
stamp,cashand chequeintransitweretakenintoaccount.Thiswas
popularlyknownasPostmaster’sbalance.

Accordinglymonthlyaccountswerebookedinthe ClassifiedAbstractin
respectofeachunitandsubmittedtoBooksection

Transferentriesweregivenforanycorrection.
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14. Consolidation of Monthly Accounts in PAO

FromtheFin.Year 2011-12,CGAintroducedcomputerized
accountingsystem.

MonthlyaccountswerecompiledinthelocalSQLserverwiththe
COMPACT(PAO-200)softwaredevelopedbyNIC.

Inthesoftwaredataentrywasdoneusingsomeshortcodes for
theHeadofAccounts

Monthlydatawerecompiledlocallyusingthesoftwareanda text
filewasgenerated.

Oncetheconsolidationwasdonenochangewasallowed .

However,duringuploadingvalidationwasdoneinthesystem
andonrejection,postconsolidationtransferentrywereallowed.

Thetextfilewasuploadedinthee-lekha portalfromPAOusing
specificcredentials.
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15. Consolidation of Monthly Accounts in PAO
AfterimplementationofCSI ,thetrial
balanceweredownloaded insteadof
monthlycashaccount.
Monthlyaccountswerepreparedfromthe
trialbalanceandweresubmittedtoBook
section.
Booksectionusedtocompilethemonthly
datainrespectofalltheunitsanduploaded
itine-lekha.
Thenfrom 01/10/2019,PFMSwas
introducedandthepresentsystemstarted.
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16. Chapter-II: Postal Dte. Organisation
Directorate:
2.01:Workofsecretary(Posts)
1.
Compilation&ConsolidationofMonthly&Annualaccounts
2.
PreparationofPostalportionofCombinedFinance&revenueAccounts
3.
PreparationofAnnualAppropriationAccounts
2.02:SectionsinPostalDte:
1.Control&Examination2.Administration3.Budget
4.Book-I&II
5.PEA(PensionExamination&Accounts)&PACE(PostalAccounts&
ControlofExams)
6.TechnicalI&II 7.InternalCheck
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17. Chapter-II: PAO Organisation
2.03:23PAOs
2.04:HeadofPostalCircleAccountsOffices:Sr.DDG
(PA&F)
2.05:UnitstobemonitoredbyPAO( HO/
RMS/MMS/PSD/RO/PED/PCD/PTC/PAO/
CEPT&allNCDDOsunderit)
2.06:SectionsinPAO:
1.
General:PA/Pension/GPF/NPS/Budget/
Finance&PAMisc.
2.
Technical:MO/IPO/AC/CC/GS/Book&
Remittances
3.
Misc.:IA/Admin/Establishment/IPPB/
WUMT/Insurance/SB
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18. Chapter-II: Organization & Control
CalculationofStaffstrengths:
2.07:Sanctionstrengthgiveningradationlistofeach
office.
2.08:Staffrequirementtobecalculatedontheaverage
workof5continuousmonth.
2.09:ICshouldregularlycheckthiscorrectness.
2.10:
The Central Inspection section/Internal check
section of the Branch Postal Accounts Offices
should check the proper maintenance of these
registersduring the course of their test check of the
work of the various sections.
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19. Chapter-II: Organization & Control

2.11:
Thestaffstrengthofthenon-routineAccountingSection;
VizPostalAccounts,Pension,AccountCurrent,Genera1Provident
Fund,GeneralCoordination,Administrationsectionetc.;isnotofa
flexiblenatureandcannotrespondquicklytoChangesinthe
quantityofwork.Increasesorreductionsinstrengthshouldbe
proposedonlywhenadecidedchangeinthequantityof work
becomesmanifest.

2.12:AfterdepartmentalizationofAccountssome
sectionsofthebranchPostalAccountsoffices,suchas:
Administration,Welfare,CentralandEstablishmentare
detailedasadministrativeandothersectionsare
declaredasoperative.
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20. Chapter-II: Organization & Control
2.13:ControloverSWR: EachsectionofPAO
shouldmaintainacalendarofReturnsinForm
Sy.264showingthedueandactualdatesof:

Thedispatchofreturnsdue

ThesubmissiontotheBranchofficersofallA/c,
objection,Statement,Registers.

Thereceiptofthereturnsdue

Anyspecialitems
Eachofthefirstthreementionedaboveshouldbefurtherdividedintothefollowing
subdivisionsaccordingtotheirperiodicityofsubmissionlikeBi-weekly;Weekly;Fort-
Nightly;Monthly;Bi-monthly;Quarterly;Halfyearly;andYearly.AAOisresponsible
forthiswork
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21. Chapter-II: Organization & Control
2.14:Theworkdistributionanditscompletionbedistributedand
monitoredbyAAO/BOandHeadofPostalAccountsofficeinsucha
waythatdays/monthworkiscompletedbytheendofday/month
concerned.ItwouldbepossiblefortransactionauditwithT+3day
basisandsuchchecksandbalancesworkshouldneverbekeptpending
forfallingintoarrears.2.15:
Inordertoensuretheaccuracyofthearrearsexhibitedinthe
MonthlyStateofWorkReportsenttotheHeadquarterOffice,each
sectionofthePostalAccountsOfficeshouldinvariablymaintaina
manuscriptregistershowingthedetailsofworkinarrears.
2.16
AmonthlyreportonthestateofworkintheHeadquartersoffice
shouldbepreparedbytheTechnicalSectionbythe5thofthemonth
followingthattowhichthereportrelates.Forthispurpose,theAAOof
eachsectionwillgetthestateofworkreportforhissectionpreparedin
theprescribedPerformaand,afterapprovaloftheBranchofficerin-
chargeshouldsendittotheTechnicalSection.ReportonSWRsent
toPAWing.
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22. Chapter-II: Organization & Control
Scales of Pay:
2.17: The different pay scales of different
levels are mentioned here.
2.18:
The cashiers in Postal Accounts Offices are entitled to
the rates of Cash Handling Allowance with effect from
1.7.2017 on fulfilment of such terms and conditions laid
down in G.I., Dept. of Per.&Trg.O.M.No.4/6/2017-Estt (Pay.
I) dated 18th January, 2019
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23. Chapter-II: Organization & Control
Procedure for sending records to old Record Room
2.19:Files,Registers,voucherbundlesetc.shallbeproperly
boundimmediatelyafterclosure.Theoutercovershallhave
conspicuouslyrecordedontheminbiglettersonprintedslipsin
FormSy.322C underthedatedsignatureoftheAccounts
Officer,theproposedyearofdestructionofthatrecord.They
shallbekeptseriallyarrangedinthesectionsconcernedfornot
morethan3calendaryearsandtransferredtotheDepartmental
RecordRoomthereafter.Files,vouchers,registersetc.tobe
transferredtotheDepartmentalRecordRoomwillbe
accompaniedbyalist
2.20
ThedepartmentalRecordRoomshouldrefusetoaccept
anyrecordwhichisnotcompleteintheaboverespect.
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24. Chapter-II: Organization & Control
Procedure regarding preservation and destruction of records
2.21
Thedetailedprocedureforpreservationofrecords
receivedfromvariousbranchesandtheirsubsequentdestruction
byDepartmentalRecordRoom/oldRecordRoomhasbeenlaid
downalongwiththelistofitems&theirprescribedperiodof
preservationvideAppendix-3ofthisvolume.
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25. Chapter-II: Organization & Control
Establishment Norms
2.22
The standard norms for calculation of staff
justified will is issued as separately, which may
constantly change in view of degree of computerisation
from time to time.
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26. Presented by:
Subhajit Sen Gupta
9038110001
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