Reconciliation of Expenditure and Receipt dt 07.05.2018
OFFICE MEMORANDUM
Subject: Expenditure and Receipt
I am directed to refer to the subject noted above and to state that reconciliation of expenditure is not being done by concerned departments on a regular basis, despite the fact that the Finance Department has been repeatedly emphasizing it from time to time. This failure on the part of the Administrative in the government department.
2. It is the need of hour to improve the system of financial control and discipline by the Administrative Department as well as the various tiers of Local Governments. The Finance Department intends to play its due role as prescribed in the Rules of Business viz. “Supervision and Control of Provincial Finance”. It needs no emphasis to state that the monitoring of budgetary resources, both receipts and payments, by the Administrative Secretaries, is one of their prime responsibilities as Principal Accounting Officers (PAOs).
They are responsible not only for the efficient and economical conduct of their departments, but are also answerable before the Public Accounts Committee. The two main principles to be observed are economy (getting full value for money) and regular (spending money for the purposes and in the manner prescribed by law and rules).
3. Monthly reconciliation of Receipts and Expenditure is a mandatory requirement under Rules. The Treasury Officers / District Accounts Officers are required to issue schedules of receipts and payments to Drawn and Disbursing Officers/Collecting Officers under the provision of Rule 2.25 of the Punjab Budget Manual. The Finance Department has been issuing instructions from time to time to emphasize the importance of this function.
4. It is requested to issue explicit instructions to your subordinate officers (DDO/CO) to invariably carry out monthly reconciliation of payments and receipts with their respective DAOs/TOs/AG (Punjab), who have already been addressed to fulfill the requirements.
5. Likewise, Drawing and Disbursing Officers may be directed to authenticate the monthly Pay-Roll data of the employees in their respective Cost Centers by certifying to the District Accounts Officers/Accountant General Punjab, Lahore that the disbursements made through Bank Accounts against their Cost Centers relate to the employees legally entitled and within the “Schedule of Establishment/Sanction Strength” of their offices and none of them was absent or on leave during the month.
This certificate may be issued to the District Accounts Offices/Accountant General Punjab, Lahore before processing of payroll for next month.
