Cashier and cashbook

Cashier

&

Cashbook

 Maintenance of Cash Book

•  1. All monetary transactions should be entered in the cash book as soon as they occur 
•  2. Cheque/ Draft should be considered as cash. The same should be entered in the cash book immediately after receipt of the same. Date of encashment of said cheque/ draft should be noted in the cash book.
• 3. Cash book should be closed and balanced each day. In no case any officer should continue transaction of his office without closing, balancing the cash book after the day's transaction. DDO should write himself the amount of closing balance in figure and word in the cash book in each day.
•  4. DDO should verify all entries in the cash book with original documents viz. receipt book counterfoil, bill register, cheque register, vouchers, payment receipts etc. and also totaling of cash book. DDO will initial against each entry of cash book on being satisfied about its correctness.
• 5. Balance of cash book should be analyzed daily at the bottom of the cash book or in a separate register from which DDO can understand easily how long the money is lying un- disbursed or the money is not credited to Government account.
•  6. Erasing or overwriting of an entry once made in the cash book is strictly prohibited. If any mistake is detected, it should be corrected by drawing the pen through the incorrect entry and inserting the correct one in red ink between the lines. DDO should initial each and every correction with his dated initial.
• 7. At the end of the month of Head of Ofice should verify the cash balance in the cash book and record a certificate to that effect in respect of physical verification of cash with his dated signature.
•  8. Machine page number of cash book should be used. Before using the cash book DDO should satisfy about page number of cash book and issue certificate to the effect in the cash book in the front page.
•  9. The blank receipt books shall be kept in the safe custody of the official authorized to sign the receipt. Receipt should be signed by Head of Office or any other Officer subordinate to him may be authorized to sign unless otherwise prescribed in departmental regulation framed in terms of SR 41. 
• 10. Any temporary advance when made out of Departmental Cash should be recorded in the cash book. There are columns in the cash book for the purpose of recording advances and their adjustments. In offices where there are number of cases of advances, it is better to open an advance register. 
• 11. In an office where an account of banking nature (PL account) is in operation, separate double column Cash Book may be maintained for the purpose. Total of the transactions of each day may be recorded at the bottom of main cash book. PL account should be closed on the last working day of the financial year, if not otherwise stated by special Govt. order.
• 12. For each office there shall be only one cash book. 
• 13. The Govt. Officer who handles government money should not, except with the special sanction of Head of Office, be allowed to handle also in his official capacity money which does not belong to Govemment. When Govt. and Non-Govt. money will be handled, the same should be kept in separate box and the transaction of the Non-Govt. money should be accounted in a separate set of books and kept entirely out of Govt. account.
• 14. When numbers of deposit are more than ten or total amount exceeds Rs. 1000 in a month, Treasury verification of the same is must.
•  15. Government Cheque is valid for three months after the month of issue.
• 16. No money shall be drawn from Govt. account unless it requires for immediate disbursement.
• 17. The money received by Government shall be deposited into the Bank or Treasury within the next working day at the latest unless otherwise specified by the Government in terms of TR 7. No Officer is authorized to make expenditure out of departmental receipt except with the special sanction of the Govt. as defined in TR 7.
•  18. Undisbursed amount of cash should be deposited to the Govt. account within three months from the date of encashment (GO No. 2388-F dated 09.03.1990). 
• 19. As soon as any defalcation, misappropriation of loss or shortage of stores, Govermment property or money is detected, the Head of Office/ DDO shall forthwith Report to higher authority. Report to Finance Department, Report to AG, West Bengal (in cash amount involved more than Rs. 200). Lodge FIR with the police.
• Reference: GO No. 12155-F dated 04.12.1990, Rule 39-42 of WBFR Vol-I, Appendix 2 of WBFR Vol -11, GO No. 2455(52)-F dated 08.05. 1975.
•  (1) Every voucher shall bear a pay order signed or initialled and dated by the Drawing and Disbursing officer, specifying the amount payable both in words and figures. All pay orders shall be signed by hand in ink orball-point pen.
• (2) Cashier and others authorised to make disbursements on passed bills, shall make no payment without a proper pay order of the responsible Drawing and Disbursing Officer recorded clearly in ink or by ball-point pen on the bill.
• All paid bills shall be stamped "paid" or so cancelled that they cannot be used a second time. The Stamps affixed to vouchers shall also be cancelled so that they may not be used again.
•  The vouchers and acquaintances, which are not required to be submitted to the Accountant-General (Accounts and Entitlement) West Bengal, shall be filed and retained carefully in the office concerned as important documents till they are destroyed under the orders of competent authority.
•  All sub-vouchers shall be cancelled in such a manner that such sub-vouchers shall not subsequently be used for presenting fraudulent claims or other fraudulent purpose.
•  The provisions of T.R.4.123 with regard to cancellation and destruction of sub vouchers relating to contingent expenditure shall apply generally to sub-vouchers in respect of other classes of payments unless they are governed by special departmental regulations or orders of the Government to the contrary.
• Maintenance of Cash Book and Collectorate Nazir's Cash Book
• (SR 30, 31 TR-Vol-1 and No. 12155F dt. 11.12.90: Moneys tenderęd as dues of or for deposit of the Govt. shall not unnecessarily pass through-the hands of an ofticer. Direct payment to Treasury Bank should be made. DD0 will mintain a Cash Book in TR Form No. 4, Nazir in Form No. 4A. Police office 1n TR form 4B. For other officesash Book, in the form aS may. be prescribed will be maintained. The Cash Book should be bound in convenient volumeS and pages maçhine numbered. Betore use, the Head of Office or any OIicer nominated by nim shnould cOunt the number of pages and record a certificatę of count on, the first page. Al monetary transactions should be entered inçash Book, as sOon as, they Occur and attested by DDO. Cashie/staff who handle Cash should not handle accounts. Police escort should be taken while carrying Cash. Under SR 66, the fund where necessary may be kept at a Treasury for a brief period. Double lock system should operate for department chest-one key to be kept by Cashier, the other by DDO.  No money, should be kept in a Bank A/c without Govt approval (TR 8 & 9) The cash should be closed and balanced each day and completely, checked with reference to challan, receipts vouchers etc. DDO should verify totalling of the Cash Book or have this done by a responsible Subordinate other, that the writer of the çash Book and initial it as correcct. Erasure or overwriting in the Cash Book is strictly forbidden. If a mistake is deleted, it should be corrected by drawing the pen throgh the incorrect entry and inserting, the correct one in red ink between the lines. Every correctioon should be initialed with date. Govt, and non-Govt money should not be handled without approval of Head of Office. When this is done as per Govt. order, such money should be kept in a separate chest. At the end of each month, Head of Office shall verify the cash balance and record a certificate in the Cash Book. DDO should verity at the end of each month receipts and payments recorded in cash Book, with treasury receipts and payment schedules. Cashier will furnish Security Deposit as per Rule 25 of WBFR-I as amended under No. 9886F dt. 10.10.90.
• There should be only one Cash Book for each office. Where subsidiary cashbooks are maintained the main cash book will show the transactions of the subsidiary cash book either in a memorandum column on the body of the Cash Book.
• A cheque, draft or pay order received in payment of dues of Govt. or for other reasons shall forthwith be recorded in the Cash Book and then credited to Govt. A/c through TR-7. No officer is aųthorised to make expenditure out of departmental receipt except, as provided in TR-7(2). A list. of undisbursed balance of Cash Book should be analysed daily to ascertain how long the money lying undisbursed or not credited to Govt.A/C. If any amount remains undisbursed for over three months, the same should be refunded by short drawal or by diręct deposit. Such amount may be drawn a new under SR 216 when occasion arises for payment. (SR 572) (2) & (3).
• For encashment of A/c Payee cheques/draft, no Bank account is required to be opened. Such cheques etc are received by Bank attached to Treasury after endorsement as per SR 44 is made. No revenue stamp is necessary for payment up to Rs. 500.00( SR 100 ) as amended by No. 1648(15) FT. dt. 20.6.94.
• Collectorate Nazir's Cash Book: 
• Chapter VII of Practice & Procedure Manual regulate receipt, payment and refund of nazir's Account and Register and Return Manual stipulate the registers to be maintained. The general Rules regarding maintenance of Cash as discussed in the foregoing paragraphs equally apply to Nazir's cash as per circular.
• Precaution to be adopted by the DDOs in drawing the funds are indicated:
• (a) Bill should be presented though Bill Transit Register in TR Form No. 5A (SR 31).
• (b) Police escort should be taken for carrying cash ( SR 31 ) 
• (C)The fund where necessary may be kept at a Treasury in sealed bag for a brief period. It.may. also be kept. In lron Chest embedded on the floor or wall of the Treasury Building within the Views of the Sentry ( SR 6 )
• (d) Cash at the, departmental chest should be kept in double lock. Iron safe to, be opened or Closed each time turning both the keys one of which should be kept with the cashier and the other with the o/c of cash. ( SR 63).
•  (e) No money should be kept in a bank without approval of Government (TR 8 & 9).
• 6. Account matters: Head of office or DDO should not ask the cashier to performn the duties of Accountant ( SR31 of TR-1). He should arrange for proper internal check and supervision. [R 38 WBFR - Vol-1]
• 9. Why defalcation, fraud or criminal misappropriation occurs An insight into some typical cases:
• Defalcation, fraud etc mainly occur when the prescribed essential checks governing expenditure from public funds and standards of financial "propriety are not effectively applied. It is lack of financial control, which renders irregularities possible. It may also ' be due to disregard, violation or ignorance of rules.
• Officers handling cash should in particular ensure that all monetary transactions are entered in the Cash Book as soon as they occur. The Cash Book should be daily closed and balanced and completely checked wherever any transaction took place. Closing balance is to be written both in words and figures (SR 31 of Treasury Rules, Vol 1). The Head of Office should verify the cash balance at the end of each month. Erasures should be avoided. Overwriting in the Cash Book / bills should be duly attested.
• Armed Police escort should be taken when considerable amount of cash is to be carried. There should be only one Cash Book for each office. Govt. money should not be kept with non-Govt. money. No money should be kept in Bank without Govt. approval (T.R. 8 & 9 of T.R., Vol. 1).
• Where there is double-lock system-one lock should invariably be kept with DDO and the other with the clerk/cashier authorised to handle cash (SR 63 of T.R. Vol. 1). Defalcation often occurs when this is not followed. DDO should ensure that the duplicate keys are kept in custody of the Treasury, if this is not followed there is grave risk of defalcation. All bills must be submitted to the Treasury through duly authenticated bill transit register. No blank space should be left in the bills/pay orders to give scope for interpolation of figures. Monthly review of bill register is a must.

Security Bond/ security deposit

•  Subject to any special rule or order made by Government in this behalf, every erstwhile gazetted officer, cashier, store keeper and other subordinate who is entrusted with the custody of cash or stores should be required to furnish security, the amount being regulated according to Circumstances and to local conditions in each case under the sanction of competent authority, and to execute a security bond setting forth the conditions under which Government will hold the security and may ultimately refund or appropriate it.
• Note 1.- The amount of security deposit should, as a rule, be equivalent to 10 percent In excess of the maximum amount of cash or the maximum value of stores likely to be in the custody of a Government servant at anyone time. In special eases where the application of this principle may cause hardship, the competent authority may, for reasons to be recorded in writing, reduce thee amount of security as tar as he thinks necessary.
• Note 2.- In the case of Government servants of 20 years, pensionable service or upwards ,he security may be diminished by a sum calculated on their monthly pay, multiplied by 25 with the proviso that the security will, in no case, be diminished by more than one-half of the amount fixed under Note .
• Note 3. - Ordinarily clerical and other Government servants, who are required to give security to Government against loss through dishonesty, negligence or disregard of rules, should deposit the whole amount of the security on appointment or bind themselves by two sureties for the whole amount and agree to monthly deductions of 25 per cent of their pay. Where the amount of securities is Rs. 500 or less, the following alternative procedure may be adopted
• (a) The Government servant may give a fidelity bond of an Insurance Company approved by Government for the full amount of the required security guaranteeing Government against losses through dishonesty negligence or disregard of the rules on the part of the Government servant. He shall also be required to execute a security bond in the form given in Appendix I.
• (b) Deductions will then be made monthly at the rate of 10 per cent of the Government servant's pay, the fidelity bond to be cancelled only after the full amount of the security bond has been deposited in cash.
• (c) Government servants in charge of offices will be responsible for seeing that fidelity bonds, which expire before the full amount of security has been recovered by deduction from pay, are renewed in good time so as to cover the outstanding amounts.
• Note 4.- Fidelity bonds with the Indian Insurance Companies Association Pool, Bombay shall, in all cases, be accepted subject to the form of the bond being scrutinised in individual passed by the heads of departments in consultation with the law officer, where necessary.
• If in any particular case, an employee desires that a policy from some insurer (other than the Indian Insurance Companies Association Pool, Bombay) may be accepted, the case shall be referred to the Assistant Controller of Insurance, Government of India, Simla, for advice.
• Note 5.- When deductions are made monthly from the pay of a Government servant to cover the amount of his security, a Savings Banks Account should be opened with the Post Office in the name of the officer to whom the security is to be pledged, for the deposit of the amounts realised monthly. The realisations should always be made in cash at the time of disbursement of the pay and the amounts remitted forthwith for credit to the Post Office Savings Bank. The amounts realised by deduction and paid to the Savings Bank shall also be debited and credited in the General cash Book.
• Note 6.- Notes 3 and 4 of this rule will also apply to cases where Government may by special order, direct that fidelity bonds for securities in excess of Rs. 500 shall be taken.
• 27. Subject to any rule or order made by Government in this behalf the form of the security bond to be executed at the time of furnishing security should be determined under orders of the head of the department according to the kind of security furnished. When a Government officer is specially permitted to furnish security partly in one and partly in another of the forms of security specified in rule 25 he should execute separate bonds for the different kinds of security.
• Note.- The model form of security bond to be taken from Treasurer in district treasuries is given in Form T.R. 2 in Treasury Rules, West Bengal.
• 28. (1) Post Office Savings Bank Pass Books, deposit receipts of banks, fidelity bonds and security bonds or agreements should be kept in the safe custody of the departmental authority which takes the security but in the absence of sufficient security arrangements in the office of the departmental authority the aforesaid documents may be sent by such authority to the treasury for safe custody.
• Note 1.- All the Post Office Savings Bank Pass Books should be sent to the post office as soon as possible after the 15th June of each year, so that the necessary entries on account of interest may be made in them.
• In the case of deposit receipts of banks the depositor should receive the interest, when due, Direct from the bank on a letter from the pledgee authorising the bank to pay it to him.
• Note 2.- The security bonds of Government officers employed in treasuries should be kept in a locked box in the double lock strong room of the district treasury. The Treasury Offices will be responsible for the safe custody of the bonds and should keep the key of the box in his personal custody.
• (2) Promissory Notes, Stock certificates of the Central Government or a State Government, Municipal Debentures, Port Trust Bonds, Bonds and/or Debenture of the State Financial Corporations, National Savings certificates, Post Office Time Deposits deposited as security shall be lodged for safe custody with the Manager of the Reserve Bank of India at places where there are offices of that Bank and with the district treasury in other places in accordance with the rules in Chapter IX of the Government Securities Manual.
• 29. A security deposit taken from a Government officer should be retained for at least six months from the date when he vacates his post, put a security bond should be retained permanently or until it is certain that there is no further necessity for keeping it.
• 30. Without the special orders of the competent authority no security deposit should be repaid or retransferred to the depositor, or otherwise disposed of, except in accordance with the terms of his security bond or agreement. A departmental authority on returning any security to the depositor should invariably obtain his acknowledgement duly signed and witnessed. When an interest-bearing security is returned or retransferred, the acknowledgement should set forth ful particulars of the security.
• 31. The security deposit of a contractor, comprised wholly of earnest money retained after the acceptance of his tender or of percentage deductions from subsequent bills- for work done, or partly of the former and partly of the latter, shall not be refunded till the' final bill for the relative work has been prepared and passed.
• Government will not pay any interest on any deposit held in the form of cash.
• These securities shall be accepted at five per cent below their market price or at their face value, which- ever is less and shall be dealt with in accordance wit-h the rules in Chapter X of the Government Securities Manual.
• (1) A Pass Book for a deposit made under the Post Office Savings Bank Rules may be accepted as security provided that the depositor has signed and delivered to the Postmaster a letter in the prescribed form as required by those rules.
• (2) The Pass Book shall be sent to the Post Office as soon as possible after the 15th June of each year, so that the necessary entries on account of interest may be made in them,
• (3) The Certificates shall be formally transferred to the Governor. The departmental authority authorised to accept the security shall accept the same with the sanction of the Post Master of the Office of Registration at their surrender value at the time of tender.
• (4) Certificates which are not held in the name of the person furnishing the security shal not be accepted.
• (5) Deposit receipts of recognised banks approved by the Government for the purpose.
• (6) Fidelity Bonds of Life Insurance Corporation of India.
• (7) The deposit receipt shall be made out in the name of the pledgee or if it is made out in the name of the pledger, the bank shall certify on it that the deposit can be withdrawn only on, the demand, or with the sanction, of the pledgee. The bank shall agree that on receiving a signed treasury challan and withdrawal order from the pledgee in respect of the deposit or any Part thereof, it will at once remit the amount specified in to the nearest Treasury along with the challan and send the treasury receipt to the pledgee.
• (8) The depositor shall agree in writing to undertake any risks involved in the investment and make good the depreciation, if any.
• (9) The depositor shall receive the interest when due direct from the bank on a letter from the pledgee authorising the bank to pay it to him.
• (10) The responsibility of the pledgee in connection with the deposit and the interest on it will cease when he issues a final withdrawal order to the depositor and sends intimation to the bank that he has done so.
• A fidelity bond may be accepted as security from a Government servant but not from a private party. When a Government servant has furnished security in the form of a fidelity bond, the departmental authority authorised to accept security shall see that the Government servant pays premia necessary to keep it alive on the due dates and continues to do so until he vacates his office. If the Government servant fails to submit the premium receipts ill time, he shall not be allowed to perform the duties of his post and dealt with in accordance with the terms of his appointment
• 26. Security furnished in cash by a Government officer or a contractor may be converted, at thee cOst of the depositor, into any of the interest bearing forms of security mentioned in items (i) to (vi) of rule 25 provided.
• (i) that the depositor has expressly requested in writing that this be done and
• (ii) that the acceptance of the new form or forms of security is permissible; under the rules and under the terms of the agreement or bond.
• Note 1. - Cash actually received or recovered may be converted into an interest bearing form of security even when it forms part of a deposit which is being paid in instalments and has not yet been realised in full.
• Note 2. - Percentage deductions made from a contractor's bill held as security for the due fulfilment of a contract should not be converted into any other form of security unlesS there is special rule or order for such conversion.
• Note 7.- The power under rule 22B may be exercised by the Heads of Department in consultation with the Accountant-General, West Bengal.
• 22A. A register in F R. Form No. 2A (Register of Security Deposits) should be maintained in all offices and institutions to watch the receipt and disposal of security deposits including interest- bearing securities.
• Note 1.- In this register should be inserted an index in the following form
• Sufficient space will be left in this part for the addition of fresh names from year to year.
• The register and index will be in the charge of the Head of Office or Institution who will certify each year that the register is complete and that the name of every officer to give security has been entered in the register, whether he has given security or not. The certificate will form part of the index, and will be in the following form
• When filling in the certificate, the Head of Office or Institution will also initial and date the last entry in part I of the index.
• Note 2.- In all Public Works Department the receipts and disposal of interest bearing securities are entered in the Central Public Works Accounts Form No. 85.
• 22B. Every Librarian or other subordinate who is entrusted with the custody of books, journals, etc., should be required to furnish a security bond in the form as in Appendix No. 1A or 1B or 1C, as the case may be, the amount thereunder being regulated according to the circumstances in each case under the sanction of the competent authority and reduced in accordance with the provisions of Note 2 at the discretion of the competent authority.
• 23. When a Government servant who has furnished security takes leave or is deputed to other duty for not more than six months, he should ordinarily be required to stand surety for thee Government servant appointed to act for him to the extent of his own security or for the difference between the security offered by the acting incumbent and that prescribed for the appointment. If, however in special circumstances the permanent incumbent is unable to do so, the Government servant acting for him must furnish the full amount of the security or at the discretion of the head of the office, half the amount in cash and the rest in fidelity bonds. Security to the full amount should always be taken when the acting appointment is made for more than six months.
• Provided further that if a Government servant holding substantively a post in which no security is demanded is appointed for a period not exceeding three months to a post in which the security is required, the head of the office may permit him to furnish security for a reduced amount or, when the security required does not exceed Rs. 500, may, for special reasons to be recorded, exempt him from furnishing any security.
• 24. Whenever a private person or firm contracts with Government to supply stores or execute a work, he or it should, unless exempted by competent authority, be required to give security for the due fulfillment of the contract and suitable provisions regarding the security should be incorporated in the agreement.
• 25. Subject to the provisions of rule 26, the security taken from a Government servant not covered by the provisions of note 5 below rule 22 or from a contractor shall be in one of the following forms subject to the conditions noted against each or partly in one and partly in another of these forms when this is specially permitted by the departmental authority authorised to accept the security Forms.
• Conditions
• (i) Cash
• (ii) Promissory Notes, Stock certificates of the Central Government or a State Government, Municipal Debentures, Port Trust Bonds, Bonds and/or Debentures of the State Financial Corporations.
• (iii) Post Office Savings Bank Pass Books.
• (iv) National Savings Certificates, Post Office Time Deposits. .