Establishment of Reconciliation Cell dt 26.05.2007
OFFICE MEMORANDUM
Subject: Reconciliation Cell
Kindly refer to the subject noted above.
• As you may recall the subject issue was initially also discussed in a recent meeting held with you in the Finance Department under the chairmanship of the Secretary Finance.
3. As you are aware, the following functions mandatorily devolve upon the Accountants Department in the District Accounts Offices/Treasuries offices:
i) Discharging of paid vouchers.
ii) Post-Audit of pensions paid at the National Bank of Pakistan branches.
iii) Issuance of schedules of payments and receipts to DDOs.
iv) Monthly Reconciliation of Accounts.
4. It has, however, been observed that these functions are not being performed satisfactorily, but are generally overlooked on the ground of shortage of staff. These lapses have led to poor financial controls, causing increased incidence of fraudulent payments and embezzlements. Now that the staff has been reasonably replenished, and sufficient resources have been placed at your disposal, coupled with improved service conditions, there is absolutely no justification to disregard the conduct of these mandatory treasury functions under reference.
5. In order to discharge these functions in a regular and systematic manner, it has been decided to establish a dedicated section in the Accountants Department in each district accounts office/treasury office to be designated as the “Reconciliation Cell.” This cell will be headed by an Assistant Treasury Officer to be drawn against the newly created post of an ATO in each district.
The cell may comprise of 1-2 Assistant Accountants, and 3-4 Sub-Accountants, depending upon the volume of work, amongst whom the work may be suitably distributed according to the local requirements. The cell shall be exclusively responsible for carrying out functions under reference, including the liquidation of any arrears in these areas. The normal duration of staff posted in the cell will be one year, and their services would be rotated, subject to dedication and good performance.
6. The ATO heading the cell shall be personally responsible for the satisfactory performance of these functions by the staff placed under him. The work and output of this cell shall be evaluated by the DAO/TO on a monthly basis, where are a monthly certification would be sent by each DAO/TO, duly signed by the ATO in-charge of the compilation cell, and countersigned by the DAO concerned, separately showing the status of each function during the month. Any failing or lapse in this regard shall invoke disciplinary proceedings against the negligent officers/staff, besides it would be reflected in the ACRs of the respective functionary.
7. The reconciliation cell may be established immediately, and the name of the in-charge of the cell, and the complementary staff may be intimated to this department.
