Signing of Cheques by two delegated Officers – AG 15.07.2013

Signing of Cheques by two delegated Officers – AG 15.07.2013

n a directive dated July 15, 2013, the Accountant General has established a policy requiring dual signing for cheques issued in District Accounts Offices. This policy ensures stringent financial oversight and accountability across all financial transactions within the organization.

Key Points of the Policy

1. Dual Signatory Requirement: Cheques exceeding the threshold of Rs. 500,000 in District Accounts Offices must be signed by two designated officers:
   • District Accounts Officer-I (DAO-I)
   • District Accounts Officer-II (DAO-II)
   If DAO-II is unavailable, an Assistant Accounts Officer (BPS-17) responsible for payments may co-sign the cheques.
2. Office of the Accountant General Protocol:
   • Cheques issued from the Office of the Accountant General are signed by:
     • Accounts Officer (Cheque Section)
     • Accounts Officer (Reconciliation Section)
   In the absence of the Accounts Officer from the Reconciliation Section, the Assistant Accounts Officer (Budget) serves as a co-signatory.
3. Cheques Below Rs. 500,000:
   • Cheques generated by the system and falling below the Rs. 500,000 threshold are signed by DAO-I in District Offices and by the AAG/AO (Cheque Section) in the Main Office, following established practices.
4. Manual Cheques for SDAs/PLAs:
   • Manual cheques issued for Special Drawing Accounts (SDAs) and Project Ledger Accounts (PLAs) continue to require a signatory and co-signatory as per existing procedures, irrespective of the cheque amount.

Implementation and Compliance

The implementation of dual signing for cheques aims to:

• Enhance Security: By requiring two signatures, the policy mitigates risks associated with unauthorized transactions and fraud.
• Ensure Accountability: Designated officers are responsible for verifying the accuracy and legitimacy of each cheque before signing, ensuring adherence to financial regulations and internal controls.
• Maintain Operational Efficiency: Despite the rigorous signing requirements, the policy supports smooth operations by clearly defining roles and responsibilities in cheque issuance.

Continuous Monitoring and Adaptation

The Accountant General’s office maintains:

• Monitoring Mechanisms: Regular audits and checks ensure compliance with the dual signing policy, identifying any deviations and facilitating corrective actions promptly.
• Adaptation to Changing Needs: The policy remains flexible to accommodate changes in financial practices and technology advancements while prioritizing the integrity and security of financial transactions.

Conclusion

The dual signing policy for cheques in District Accounts Offices, as mandated by the Accountant General, underscores a commitment to robust financial governance and transparency. By requiring two authorized officers to sign cheques, the organization strengthens its control framework, reduces financial risks, and upholds standards of accountability. This proactive approach not only safeguards the organization’s financial assets but also enhances stakeholder confidence in its financial operations.

For further details on the dual signing policy and its implications, stakeholders are encouraged to refer to official communications from the Accountant General’s office.