Himachal Pradesh Panchayati Raj (Finance, Budget, Accounts, Audit, Works, Taxation And Allowances) Rules, 2002

No. PCH-HA(1)3/98.- Whereas the draft of the Himachal Pradesh Panchayati Raj (Finance, Budget, Accounts, Audit, Works, Taxation and Allowances) Rules, 2001 was published in the Rajpatra, Himachal Pradesh (Extra ordinary) for inviting objections and suggestions from the general public dated the 12th December, 2001 vide this Department notification of even number, dated 12th December, 2001 as required under the provisions of section 186 of the Himachal Pradesh Panchayati Raj Act, 1994 (Act No. 4 of 1994) ;

And whereas, the objections/suggestions received during the stipulated period have been duly considered by the State Government; Now, therefore, in exercise of the powers conferred under section 186 of the Himachal Pradesh Panchayati Raj Act, 1994(Act No. 4 of 1994), the Governor of Himachal Pradesh, is pleased to make the following rules for carrying out the purposes of the aforesaid Act, namely :-

CHAPTER 1 PRELIMINARY

Rule - 1. Short title and commencement.

(1)     These rules may be called the Himachal Pradesh Panchayati Raj (Finance, Budget, Accounts, Audit, Works, Taxation and Allowances) Rules, 2002.

(2)     They shall come into force from the date of publication in the Rajpatra, Himachal Pradesh.

Rule - 2. Definitions.

(1)     In these rules, unless the context otherwise requires,-

(i)       "Act" means the Himachal Pradesh Panchayati Raj Act, 1994(Act No. 4 of 1994) ;

(ii)      "Accountant" means Accountant of Panchayati Raj/Rural Development Department or appointed by the Panchayat under section 135 or deputed by State Government under section 136, as the case may be ;

(iii)     "administrative approval" means the formal acceptance by the Department of Panchayati Raj, Himachal Pradesh of a proposal to incur expenditure on works initiated by or connected with the requirements of department ;

(iv)    "appropriation" means the assignment to meet specified expenditure of funds at the disposal of the assigning authority;

(v)      "assessee" means the person who is liable to pay any tax, cess or fees levied by the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be;

(vi)    "Assessing Authority" means the Secretary of the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be;

(vii)   "Assistant Engineer" means the Assistant Engineers of the Panchayati Raj/Rural Development Department or appointed by the Panchayat under section 135 or deputed by the State Government under section 136, as the case may be;

(viii)  "Auditor(s)" means the Auditors, District Audit Officers and Deputy Controller of the Panchayati Raj Department and shall also include any other private agencies/persons authorised by the Director, under section 118 of the Act;

(ix)    "book transfer" denotes the process whereby financial transactions, which do not involve the giving or receiving of cash or of stock materials, are brought to account. Such transactions usually represent liabilities and assets brought to account either by way of settlement or otherwise but they may also represent corrections and amendments made in cash, stock or book transfer, transactions previously taken to account;

(x)      "cash" includes legal tender, coin, currency and bank notes, cheques payable on demand, Government drafts and demand drafts and also revenue stamps but does not include Government securities, deposit/ receipt of banks, debentures and bonds accepted as security deposit ;

(xi)    "competent authority" means an authority, as specified in Appendix A or B or C, as the case may be, to these rules, with whose sanction/approval a particular function is to be performed under these rules;

(xii)   "contract" means any kind of undertaking written or verbal, express or implied, by a person, not being a Government servant, or by a syndicate or firm for the construction, maintenance or repair of one or more works for the supply of materials, or for the performance of any service in connection with the execution of works or the supply of materials;

(xiii)  "contractor" means a person, syndicate or firm borne on the approved list of contractors of the State Government ;

(xiv)  "day" means a calendar day beginning and ending at midnight;

(xv)   "District Panchayat Officer" means an Officer, by whatever name called, appointed by the Government to perform the functions of the District Panchayat Officer ;

(xvi)  "dues" means any amount recoverable under the Act including penalty and fines except in criminal cases;

(xvii) "Executive Engineer" means the Executive Engineer of the Panchayati Raj/Rural Development Department or appointed by the Panchayat under section 135 or deputed by the State Government under section 136, as the case may be;

(xviii)   "Form" means a form appended to these rules ;

(xix)  "funding agency" means the State Government or the Central Government or any other authority/organisation/ institutions from whom the funds are allocated to the Panchayat;

(xx)   "house" means any shop, outhouse, hut, shed, stable, whether used for the purpose of human habitation or otherwise and whether of stone, concrete, bricks masonry, wood, mud, thatch, Metal or any other material whatever and includes a wall;

(xxi)  "Junior Engineer" means Junior Engineer of the Panchayati Raj/Rural Development Department or appointed by the Panchayats under section 135 or deputed by the State Government under section 136, as the case may be;

(xxii) "minor work" means a work, the estimated cost of which does not exceed fifty thousand rupees ;

(xxiii)   "major work" means a work, the estimated cost of which does exceed more than fifty thousand rupees ;

(xxiv)   "non recurring expenditure" means expenditure sanctioned as a lump sum charge whether the money is paid as a lump sum or by instalments;

(xxv)"original works" include all new constructions whether of entirely new works or additions and alterations to existing works, all repairs to newly started or previously abandoned works which are necessary to bring them into use;

(xxvi)   "Panchayat Inspector" means the Panchayat Inspector of Panchayati Raj Department and shall also include Panchayat Sub-Inspector ;

(xxvii)  "Panchayat Sahayak" means an official appointed by the Panchayat under section 135 or deputed by the State Government under section 136, as the case may be ;

(xxviii) "person" includes any company or association or body of individuals whether incorporated or not ;

(xxix)   "property" means land, movable and immovable property belonging to, vested in or under the management of a Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be ;

(xxx)"quotations" means an offer by a contractor for undertaking any minor work ;

(xxxi)   "re-appropriation" means the transfer of fund from one unit of appropriation to another unit ;

(xxxii)  "Registrar and Sub-Registrar" means the officer appointed under the Indian Registration Act, 1908 ;

(xxxiii) "section" means the section of the Act ;

(xxxiv) "Superintendent" means Superintendent of the Panchayati Raj/Rural Development Department or appointed by the Panchayat under section 135 or deputed by the State Government under section 136, as the case may be ;

(xxxv)  "Takniki Sahayak" means the technical person(s) appointed by the Panchayat(s) under section 135;

(xxxvi) "technical authority" means and includes the Takniki Sahayak, Junior Engineer, Assistant Engineer and Executive Engineer of the Panchayati Raj/Rural Development Department or appointed by the Panchayat under section 135 or deputed by the State Government under section 136, by whatever designation, as the case may be;

(xxxvii)               "technical sanction" means the sanction of a competent authority as specified in Appendix D to a properly detailed estimate of the cost of work;

(xxxviii)              "tender" means an offer by a contractor for undertaking any major work or part of a major work ;

(xxxix) "treasury" means a treasury or sub-treasury of the Government of Himachal Pradesh ;

(xl)    "year" means the financial year beginning on the 1st of April and ending on the 31st of March following.

(2)     The words and expressions used but not defined in these rules shall have the same meanings as assigned to them in the Act.

CHAPTER 2 PANCHAYAT FUND

Rule - 3. Panchayat Fund.

Every Panchayat shall establish a fund to be called the Panchayat fund under section 99 of the Act which may be classified as Gram Panchayat Fund, Panchayat Samiti Fund and Zila Parishad Fund. All sums received by the Gram Panchayat, Panchayat Samiti and Zila Parishad shall be credited to the Gram Panchayat Fund, Panchayat Samiti fund and Zila Parishad fund, respectively and shall form part of the concerned Panchayat fund. Income shall be entered under the allotted budget code as shown in the following table:-

Explanations.-

1.        Budget code shall have five digits.

2.        First digit shall indicate receipt/income or expenditure of the Panchayat, as the case may be, and 1 shall stand for receipt/income and 2 for expenditure.

3.        Second digit shall indicate Zila Parishad or Panchayat Samiti or Gram Panchayat, as the case may be and 1 shall stand for Zila Parishad 2 for Panchayat Samiti and 3 for Gram Panchayat respectively.

4.        Third digit shall indicate whether the funds will go into AccountA or Account-B, 1 shall stand for Account-A and 2 for Account-B.

5.        Next two digits shall indicate income head.

6.        Two more digits may be added for sub-heads if specified by the State Government from time to time.

Rule - 4. Opening of Accounts.

(1)     The income mentioned in code No.- 01 to --50 in rule 3 shall be deemed as sources of own income of the Gram Panchayat, Panchayat Samiti, Zila Parishad, as the case may be and separate account shall be opened for such income. This account will be known as Panchayat fund Account-A. Similarly, the income mentioned in code No. --- 51 to ---99 in rule 3 shall be deemed as Grants-in-Aid, funds allocated for special purposes and loans. Separate Account shall be opened for this income and will be known as Panchayat fund Account-B:

Provided that the interest earned on funds deposited in Account-B shall be transferred to Account-A in the month of January and July every year.

(2)     All money received by the Gram Panchayat, Panchayat Samiti, Zila Parishad, as the case may be, shall go to either of the two accounts as referred to in sub- rule (1) depending upon the nature of funds. These accounts shall be opened in nearby post-office, co-operative bank or any of the scheduled banks.

PART 1 GRAM PANCHAYAT FUND, ITS OPERATION, APPLICATIONS AND INVESTMENT

Rule - 5. Receipt of funds.

(1)     When money is received by a Gram Panchayat, the Secretary of the Gram Panchayat, shall issue a receipt duly signed to the person/funding agency paying the money in an indelible ink, on Form-3 appended to the Himachal Pradesh Panchayati Raj(General) Rules, 1997(hereinafter referred to the "General Rules") and a counterfoil thereof shall be retained in the office.

(2)     When money is received by money order, entry of the amount so received shall forthwith be made in the cash book by the Secretary and receipt shall be issued separately in Form 3 of the General Rules.

(3)     When money is received by cheque or demand draft, the same shall be acknowledged and receipt of the amount shall be issued in Form-3 of the General Rules, with the remarks the issue of this receipt is subject to the realisation of the amount in cash, at the bottom of the receipt and shall be brought to the account in cash book after the realisation of the amount.

(4)     The receipt books shall be got printed by the District Panchayat Officer concerned, who shall issue the receipt books to the Gram Panchayats on actual cost as per their yearly demand. Before issuing the receipt books to Gram Panchayats, the District Panchayat Officer shall record accounts certificate on the page of receipt book under his signature and seal.

(5)     The blank receipt books shall be kept under lock and key under the personal custody of the Secretary. The number of forms of receipt books shall be counted and the result of the count indicated on the receipt book under the signatures of the Pradhan, before it is brought to use. The account of the receipt books and issue of the same shall be maintained separately in the stock Register of receipt books in Form-2 of the General Rules:

Provided that the District Panchayat Officer concerned shall maintain the accounts of receipt books printed and distributed to the Gram Panchayats.

Rule - 6. Maintenance of accounts.

(1)     It shall be the responsibility of the Secretary of the Gram Panchayat to ensure that all persons who receive or pay money on behalf of the Gram Panchayat, to maintain and render proper accounts therefor in such manner that information in regard to all receipts and expenditure could be deducted therefrom as required by the State Government from time to time. All accounts shall be kept so clean, the details so fully recorded and the initial record of payments made so clear, explicit and selfcontained as may produce a convincing and satisfactory evidence of the facts if required in a Court of Law.

(2)     The Secretary of the Gram Panchayat shall render to the Gram Panchayat and also to the State Government, accurately and promptly such accounts and returns exhibiting the position of those transactions as may be required of him from time to time.

(3)     All moneys received and spent on behalf of the Gram Panchayat shall be credited into and withdrawn from the Gram Panchayat Fund.

(4)     No erasure shall be made in any account book, register, Form, voucher and, if any correction has to be made, it shall be made neatly in red ink, by crossing a horizontal line over the incorrect entry and attested by the Secretary and countersigned by the Pradhan of the Gram Panchayat.

Rule - 7. Maintenance of Cash Book.

(1)     The Secretary of the Gram Panchayat shall maintain a Cash Book in From-14 of the General Rules. Entries in the cash book shall be made simultaneously with each item of income and expenditure on the date of transaction. For each item of expenditure, a receipt which will be called voucher, shall be obtained setting forth full and clear particulars, duly attested by the Pradhan and maintained on the appropriate file. Over-writing and erasures shall be strictly prohibited. The vouchers shall be numbered and serial numbers of voucher shall be changed after close of the financial year and new serial number of voucher for the current financial year shall be given. The Secretary shall maintain the cash book and each transaction of income and expenditure shall be got verified by the Pradhan. Every voucher should bear resolution number and date vide which the expenditure was authorized by the Gram Panchayat.

(2)     At the end of each month, the Pradhan shall verify the cash balance as per Cash Book and shall record a certificate on the cash book as under:-

"Certified that the cash balance with the Secretary was found to be Rs_____(Rupees______________) which tallied with the balance shown in the Cash Book."

(3)     At the close of financial year the Secretary shall give the details of cash balance including Bank balance in respect of funds available with the Panchayat.

Rule - 8. Application of Gram Panchayat Fund out of Account-A.

Subject to the budget provisions, the expenditure incurred by a Gram Panchayat out of Account-A for performance of duties and functions assigned under the provisions of the Act and the rules made thereunder, shall be valid charge on the Gram Panchayat Fund. For the purpose of this rule expenditure on the items, shall be deemed to be legitimate charge on the Gram Panchayat Fund, as mentioned below:-

(a)      performance of functions specified in Schedule-I of the Act;

(b)      performance of functions entrusted by the State Government under sub-section (2) of section 11 ;

(c)      expenditure incurred on the committed liabilities on salary, wages, travelling and daily allowances to the office bearers, officers and servants of the Gram Panchayat ;

(d)      office expenses on stationery, furniture, water/electricity, telephone bills of Gram Panchayat, postage and office equipment;

(e)      expenditure for providing refreshment to the members of Gram Panchayat and Gram Sabha attending the meeting of Gram Panchayat and Gram Sabha shall be as specified by the State Government from time to time;

(f)       making contribution for organizing training camp for office bearers of Gram Panchayat;

(g)      repayment of loans;

(h)     legal charges/audit fee;

(i)       expenditure on publicity of Gram Panchayat activities subject to the maximum of Rs. 2000/- per annum; and

(j)       expenditure on purchase of vehicles with prior approval of the State Government.

Rule - 9. Application of Gram Panchayat Fund out of Account-B.

The expenditure incurred by a Gram Panchayat out of the Account-B shall be utilized only for the purpose for which the funds are allocated and expenditure out of these funds shall be incurred in accordance with the requirements and guidelines of the funding agency which has granted the funds.

Rule - 10. Withdrawal and Deposit in Accounts.

(1)     Every withdrawal from the Gram Panchayat account shall be promptly entered in the cash book on receipt side and the deposit on the disbursement side. The pass book(s) of the said accounts shall be maintained and it shall be sent with every remittance or withdrawal to the banker for making relevant entries in the pass books. The pass book shall always be kept in the custody of Secretary.

(2)     Subject to the provisions of sub-section (4) of section 99 of the Act, the Secretary or the Panchayat Sahayak shall be the cashier of the Gram Panchayat, who shall be competent to withdraw or deposit the money/ payments from or in the accounts of the Gram Panchayat:

Provided that the payments to be made to the supplier for purchase of material shall be made by crossed cheques only.

(3)     A sum not exceeding one thousand rupees may be kept as imprest by the Secretary for urgent expenditure to be incurred by the Gram Panchayat.

Rule - 11. Surplus fund and investment thereof.

The Panchayat may invest surplus amount in the scheduled banks or co-operative banks or post office or Government securities, as the case may be, in such manner that maximum returns are ensured and also funds are available when payments are to be released:

Provided that no investment shall be made unless it is passed by a resolution of the Gram Panchayat.

Explanation.- "surplus fund" shall mean an amount of the Gram Panchayat fund, the payments of which is not required to be made within a period of six months.

Rule - 12. Register of Investments.

(1)     Details with regard to all investments made by the Gram Panchayat shall be entered, from time to time, in a register of investments to be maintained on Form-1 in which every entry made shall be initialled by the Secretary of the Gram Panchayat who shall also verify the investment and record a certificate to that effect in the register.

(2)     The account of investments made from the Provident Fund balances shall be kept separate from the account of investments made out of the surplus balances of the Gram Panchayat Fund and account in relation to the said investment shall be maintained on Form-2.

PART 2 FUNDS OF ZILA PARISHAD AND PANCHAYAT SAMITI, ITS OPERATION, APPLICATION AND INVESTMENT

Rule - 13. Receipt of Funds.

(1)     When money is received by the Secretary of the Panchayat Samiti or of the Zila Parishads, as the case may be, its receipt shall be issued with an indelible ink in Form-3. The receipt shall be given by the Secretary duly signed to the person/funding agency paying the money and its counter foil retained in the office.

(2)     When money is received by the money order, entry of the amount so received shall forthwith be made in the cash book and receipt shall be issued separately in Form-3.

(3)     When money is received by cheque or demand draft, the same shall be acknowledged and the receipt of the amount shall be issued in Form-3 with the remarks "the issue of this receipt is subject to the realisation of the amount in cash" at the bottom of the receipt and shall be brought to account in the cash book after the realisation of the amount.

(4)     The receipt book shall be got printed by the District Panchayat Officer, who shall issue the same to the Panchayat Samiti or Zila Parishad, as the case may be, on actual cost as per their yearly demand and shall record a count certificate on the title page of receipt book under his signature and seal.

(5)     The blank receipt book shall be kept under lock and key under the personal custody of the Secretary of the Panchayat Samiti or of the Zila Parishad, as the case may be. The number of forms of receipt book shall be counted and the result of the count indicated on the receipt book under the signature of the Chairman of the Panchayat Samiti or of Zila Parishad, as the case may be, before it is brought to use. The account of the receipt books and issue of the same shall be maintained separately in the stock Register of receipt books in Form-4:

Provided that the District Panchayat Officer shall maintain the account of the receipt books printed and distributed to the respective Panchayat Samitis and the Zila Parishad.

Rule - 14. Maintenance of Accounts.

(1)     It shall be the responsibility of the Secretary of Panchayat Samiti or of Zila Parishad, as the case may be, to ensure that all persons who receive or pay money on behalf of the Panchayat Samiti or Zila Parishad, as the case may be, to maintain and render proper accounts therefor in such manner that information in regard to all receipts and expenditure could be deduced therefrom as required by the State Government from time to time. All accounts shall be kept so clean, the details so fully recorded and the initial record of payments made so clear, explicit and selfcontained as may produce a convincing and satisfactory evidence of the facts if required in a Court of Law.

(2)     The Secretary of Panchayat Samiti or of Zila Parishad, as the case may be, shall render to the Panchayat Samiti or Zila Parishad, as the case may be, and also to the State Government, accurately and promptly such accounts and returns exhibiting the position of those transactions as may be required of him from time to time.

(3)     All moneys received and spent on behalf of the Panchayat Samiti or Zila Parishad, as the case may be, shall be credited into and withdrawn from the Panchayat Samiti Fund or Zila Parishad Fund, as the case may be.

(4)     No erasure shall be made in any account book, register, Form, voucher and, if any correction has to be made, it shall be made neatly in red ink, by crossing a horizontal line over the incorrect entry and attested by the Secretary of the Panchayat Samiti or of Zila Parishad, as the case may be.

Rule - 15. Maintenance of Cash Book.

(1)     All moneys received or spent by or on behalf of Panchayat Samiti or Zila Parishad, as the case may be, shall immediately be brought to account in the cash book maintained on Form-5 and attested by the Secretary of Panchayat Samiti or of Zila Parishad, as the case may be, sufficient details shall be given in the column "particulars" to admit the main points of each transaction being readily ascertained without reference to the detailed voucher or challan.

(2)     At the close of the day while signing the Cash Book, the Secretary of Panchayat Samiti or Zila Parishad, as the case may be, shall ensure that the receipts collected during the day are credited into the treasury or bank on the same day or on the morning of the following working day with a challan in Form-6 or the pay-in-slip of the bank, as the case may be. When the money is paid into the bank or treasury, the Secretary of Panchayat Samiti or of Zila Parishad, as the case may be, making such payment shall compare the Treasury Officers receipt on the challan and entry of the bank pass book with the entry made in the cash book before attesting it.

(3)     The amount remitted into the bank or treasury, in cash, shall be entered on the payment side of the cash book in the cash column and on the receipt side in the Treasury column.

(4)     When the money is received in the Panchayat fund by book transfer credit, its receipt shall be entered in the cash book by indicating "By transfer credit" in particular columns and showing the amount under "treasury" column of the cash book. All the dues of the Panchayat Samiti or Zila Parishad, as the case may be, tendered by third party will be dealt with similarly, in the treasury directly.

(5)     When a cheque is drawn by the Secretary of Panchayat Samiti or Zila Parishad, as the case may be, in favour of self in order to replenish the cash chest or for payment to third party directly, its amount shall, at once, be entered as receipt or payment, as the case may be, irrespective of the date of its encashment.

(6)     The cash book shall on each day be closed, balanced, checked and signed by the Secretary of Panchayat Samiti or Secretary of Zila Parishad, as the case may be, in token of check.

(7)     If the cheque is cancelled before the cash transactions of the day on which it was issued, has been totalled, the entry in the cash book shall be struck out in red ink under the initials of the Secretary of Panchayat Samiti or of Zila Parishad, as the case may be, with a note that the cheque has been cancelled.

(8)     If the cash book has been totalled and the correction is required to be made at any time within the same financial year in which the cheque was issued, it shall be posted on the payment side of the cash book in the treasury column as a minus entry under the head of expenditure to which it was originally charged.

(9)     If the correction is required to be made in the year subsequent to that in which the cheque was issued, the amount of the cancelled cheque shall be credited in the cash book in the treasury column as Refund of Expenditure of previous year.

(10)   At the end of each month, the Secretary of Panchayat Samiti or Zila Parishad, as the case may be, shall(a) verify the cash balance in the chest with the cash balance in cash column on receipt side of the cash book and give a certificate as under :-

(a)      "Certified that cash balance in the chest has been checked and was found to be Rs.______(in figures)__________(in words) which tallied with the balance shown in the cash column of the cash book".

(b)      compare every item of receipt and expenditure as shown in the Treasury/ Bank Pass Book with the relevant entries of the corresponding month in the cash book. The difference, if any, shall be explained and accounted for in a foot note in the cash book "in the manner indicated below:-

Balance as per treasury column of the Cash Book Rs._____(in figures)_________(in words).

(i)       add amount of cheques(detailed below) issued but not encashed,-

(1)     Rs.________

(2)     Rs.________

(ii)      minus the amounts of cheques detailed below given to treasury/ bank for collection, credit of which is still awaited,-

(1)          Rs.________

(2)          Rs._________

(iii)     balance as per Pass Book Rs._____(in figures)_________(in words).

(11)   Surprise checks shall also be made by the Secretary of Panchayat Samiti or Zila Parishad, as the case may be, once or twice a month in order to ensure that cash in hand tallies with the cash book. As and when a check is made, a certificate of count shall be recorded in the cash book.

(12)   If on comparison of the cash book with Treasury/ Bank Pass Book, any cheque appears to be unduly long outstanding, enquiries shall be made regarding it and if it cannot be traced it shall be stopped by order of Secretary of the Panchayat Samiti or Zila Parishad, as the case may be.

Rule - 16. Withdrawal from Panchayat Fund.

Withdrawal from the fund of the Panchayat Samiti or Zila Parishad, as the case may be, shall be made only by means of cheques signed jointly by the Secretary and Chairman of Panchayat Samiti or Zila Parishad, as the case may be, only when it is required for immediate disbursement on an item of expenditure.

Rule - 17. Payments from Panchayat Fund.

(1)     All payments up to Rs. 1,000/- may be made in cash.

(2)     Payment over Rs. 1,000/- shall be made by means of cheques and reference to cheque number and date shall be quoted on the bill concerned so as to avoid its double payment. All the cheques payable to third parties will be made over to them for obtaining payment from the treasury/bank:

Provided that the payment of pay and allowances to the servants/staff and honorarium and allowance to the office bearers of Panchayat Samiti or Zila Parishad, as the case may be, may be made in cash, irrespective of the amount.

(3)     Whenever money is required to replenish the cash chest it shall be drawn from the account of the Panchayat fund by means of a cheque in favour of self.

Rule - 18. Custody of Cash.

(1)     All cash in the chest of the Panchayat Samiti or Zila Parishad, as the case may be, shall be kept in a strong iron chest under double lock system. All the keys of the same lock shall not be kept in one persons custody. Key of one of the locks shall be kept by the Secretary of Panchayat Samiti or the Zila Parishad, as the case may be, and another by the Accountant or Superintendent, as the case may be. The chest shall be opened only in the presence of both the custodians of the keys. Duplicate set of the keys shall be deposited with the treasury and their inspection shall be done periodically as required under the Treasury Rules.

(2)     The Panchayat Samiti or Zila Parishad, as the case may be, may allow the accumulation of cash in the departmental cash chest up to a maximum limit of Rs. 2,500 for Panchayat Samiti and Rs. 5,000 in case of Zila Parishad at one time. But this limit shall however be subject to increase or decrease with the prior approval of the State Government, in accordance with the circumstances prevailing in various Panchayat Samitis or Zila Parishads.

(3)     The Panchayat Samiti or Zila Parishad, as the case may be, shall not be permitted to retain any additional money by way of permanent advance.

Rule - 19. Fetching of Cash.

Employment of Class-IV servants to fetch or carry money shall be discouraged. The money shall be drawn or remitted or deposited, from/in the treasury or bank or post office, only through an employee of some length of service, and of proved trust-worthiness.

Rule - 20. Accountant.

The handling of cash and maintenance of accounts of Panchayat Samiti or Zila Parishad, as the case may be, shall be transacted by the officials who are specifically authorized for this work by the Secretary concerned. If the State Government issues an order in this regard it will have over-riding effect on any orders issued by the Secretary of the Panchayat Samiti or Zila Parishad, as the case may be.

Rule - 21. Application of Panchayat Samiti Fund out of Account-A.

Subject to the budget provisions, the expenditure incurred by Panchayat Samiti out of Account-A, for performance of duties and functions assigned under the following items shall be deemed to be legitimate charge on the Panchayat Samiti Fund, namely:-

(a)      performance of functions under section 81;

(b)      performance of functions entrusted by the State Government under sections 82 and 83;

(c)      expenditure incurred on the committed liabilities on salary, wages, travelling and daily allowances to the office bearers, officers and servants of the Panchayat Samiti ;

(d)      office expenses on stationery, furniture, water/electricity, telephone bills of Panchayat Samiti, postage and office equipments;

(e)      expenditure for providing refreshment to the members of Panchayat Samiti attending the meeting of the Panchayat Samiti at such rates as may be specified by the State Government from time to time;

(f)       making contributions for organizing training camps for office bearers of Panchayat Samiti;

(g)      repayment of loans;

(h)     legal charges/audit fees;

(i)       expenditure on publicity of Panchayat Samiti activities subject to the maximum of Rs. 4000/- per annum; and

(j)       expenditure on purchase of vehicles with prior approval of the State Government.

Rule - 22. Application of Panchayat Samiti Fund out of Account-B.

The funds of the Panchayat Samiti out of Account-B shall be utilized only for the purpose for which the funds are allocated and expenditure out of them shall be incurred in accordance with the requirements and guidelines of the funding agency which has granted the funds.

Rule - 23. Application of Zila Parishad Fund out of Account-A.

Subject to the budget provisions, the expenditure incurred by Zila Parishad out of Account-A, for the performance of duties and functions assigned under the following items shall be deemed to be legitimate charge on the Zila Parishad fund namely:-

(a)      performance of functions as specified under section 92;

(b)      performance of functions entrusted by the State Government under sections 93 and 94;

(c)      expenditure incurred on the committed liabilities on salary, wages, travelling and daily allowances to the office bearers, officers and servants of the Zila Parishad;

(d)      office expenses on stationery, furniture, water/electricity, telephone bills of the Zila Parishad, postage and office equipment;

(e)      expenditure for providing refreshment to the members of Zila Parishad attending the meeting of Zila Parishad at such rates as may be specified by the Government from time to time;

(f)       making contribution for organizing training camp for office bearers of Zila Parishad;

(g)      repayment of loans;

(h)     legal charges/audit fees;

(i)       expenditure on publicity of Zila Parishad activities subject to the maximum of Rs. 6000/- per annum; and

(j)       expenditure on purchase of vehicles with the prior approval of the State Government.

Rule - 24. Application of Zila Parishad Fund out of Account-B.

The funds of the Zila Parishad out of Account-B shall be utilized only for the purpose for which the funds are allocated and expenditure out of them shall be incurred in accordance with the requirement and guidelines of the funding agency which has granted the funds.

Rule - 25. Imprest.

The Secretary of the Panchayat Samiti or Zila Parishad, as the case may be, shall maintain an imprest of Rs. 1000/- in addition to permissible cash limit under sub-rule (2) of rule 18.

Rule - 26. Surplus funds with Panchayat Samiti or Zila Parishad and investment thereof.

The Panchayat Samiti or Zila Parishad, as the case may be, may invest surplus amount in Scheduled Banks or co-operative banks or post office or Government securities, as the case may be, in such a manner that maximum returns are ensured and also funds are available when payments are to be released:

Provided that no investment shall be made, unless it is passed by a resolution of the Panchayat Samiti or the Zila Parishad, as the case may be.

Explanation.- "surplus fund" shall mean an amount of the Panchayat Samiti fund or Zila Parishad fund, as the case may be, the payments of which is not required to be made within a period of six months.

Rule - 27. Register of Investments.

(1)     Details with regard to all investments made by the Panchayat Samiti or the Zila Parishad, as the case may be, shall be entered, from time to time, in a register of investments to be maintained in Form-1 in which every entry made shall be initialled by the Secretary, who shall also verify the investment and record a certificate to that effect in the register.

(2)     The account of investments made from the Provident Fund balances shall be kept separate from the account of investments made out of the surplus balances of the Panchayat Samiti Fund or the Zila Parishad Fund, as the case may be, and account in relation to the said investment shall be maintained in Form-2.

PART 3 BORROWING OF MONEY BY PANCHAYATS

Rule - 28. Raising of loans.

Panchayats may raise loans from Government, Financial Institutions or any other local bodies in accordance with the provisions of section 110, subject to the following conditions, namely:-

(i)       permission of the State Government shall be obtained if property belonging to State Government is to be mortgaged;

(ii)      loans may also be obtained for developmental activities like creation of irrigation facilities, watershed development, roads/paths etc. If the Panchayat feels that creation of these assets would increase the income of the families and Panchayat would be able to repay the loan in future;

(iii)     expenditure of the loan/amount shall be regulated in accordance with these rules;

(iv)    loans shall be raised from such Financial Institutions which offer best terms with lowest interest rates;

(v)      the Secretary of the Panchayat raising loans shall sign the terms and condition of the agreement with the agency granting the loan on behalf of the Panchayat, who shall also maintain the accounts pertaining to raising of loan(s), their utilisation and repayment thereof; and

(vi)    the Panchayat shall ensure that the amount of loan shall be utilised for the purpose for which it is raised.

CHAPTER 3 RECORDS TO BE MAINTAINED BY PANCHAYATS

Rule - 29. Accounts Ledger.

(1)     The amounts credited into and withdrawn from the fund of the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, shall be properly accounted for in the accounts ledger in Form-7.

(2)     The Accounts ledger shall be maintained in two parts, namely:-

(i)       Part-I shall contain the accounts of the Panchayat Fund, income head-wise, as per Account-A; and

(ii)      Part-II shall contain the accounts of the Panchayat Fund, income head-wise, as per Account-B, as per sub-rule (2) of rule 4 of these rules.

(3)     As soon as an amount is received and accounted for in the cash book, an entry to this effect shall also be made in the relevant abstract in the Ledger. All payments soon after they are made and entered in the cash book shall be entered in the abstract and also under the particular scheme in this ledger. At the close of the month, the last balances standing in each abstract shall be written on a separate sheet and totalled up, and the figures thus arrived at, tallied with the closing balance of the cash book.

(4)     For the purpose of classifying the income and expenditure, a classified abstract shall be maintained in Form-8 in two volumes or parts, one for income and the other for expenditure. A separate folio will be opened for each head of account under which income or expenditure, has been budgeted for, and the items pertaining to these heads shall be taken from the general ledger as they occur and entered in the appropriate columns of the abstract. At the end of the each month, the monthly and progressive totals shall be entered under each head of the abstract.

Rule - 30. Register of temporary advances.

Whenever any advance is required to be given to any office bearer or officer/official of the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, for carrying out the purposes of the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, a record of such advances shall be kept in the register of temporary advances in Form-9.

Rule - 31. Registers, records, Accounting system and forms to be maintained by the Panchayats.

The Secretary or Panchayat Sahayak of the Gram Panchayat or Secretary of Panchayat Samiti or Zila Parishad, as the case may be, shall maintain all the records, registers, forms and accounts as per formats and codes prescribed by the Comptroller and Auditor General of India and notified by the State Government from time to time.

CHAPTER 4 COLLECTION OF TAXES, FEES, CESS AND FINES

Rule - 32. Procedure of levy of taxes by Panchayats.

(1)     When a Panchayat proposes to levy a tax, under section 104, it shall prepare a proposal to this effect by passing a resolution in its meeting.

(2)     When a resolution under sub-rule(1) has been passed, the Panchayat through its Secretary shall publish a notice, defining the class of persons or description of property proposed to be taxed, the amount of rate of such tax to be levied and the manner of assessment of tax and collection thereof for inviting objection(s)/suggestion(s) from the persons likely to be affected thereby. The copies of the said notice shall be exhibited on the notice board of the Panchayat concerned and also by pasting it at some conspicuous places in the area of the Panchayat.

(3)     Any person likely to be affected by the notice published under sub-rule (2) may within a period of thirty days from the date of publication of the notice, send his objection(s)/suggestion(s) in writing to the Secretary and the Panchayat concerned at its special meeting shall consider the objection(s)/ suggestion(s), if any, received.

(4)     If no objection(s)/suggestion(s) are received with in the said period of thirty days, or after considering the objection(s)/suggestion(s), the Panchayat through its Secretary shall submit the proposal to the State Government and the said Government may enhance or reduce the rate or disallow the levy of the tax. In case, the Government decides to allow the Panchayat to levy the tax, the same may be notified and published in the Rajpatra of Himachal Pradesh, specifying therein the date, not less than thirty days from the date of publication, on which such tax shall come into force.

(5)     A notification for the levy of tax under sub-rule(4) shall be a conclusive evidence that the tax has been imposed by the Panchayat in accordance with law.

(6)     In case where the State Government have fixed maximum rates of tax, fee and cess to be imposed by the Gram Panchayat, the Gram Panchayat, may impose such tax, fee and cess and may enhance the rates thereof, from time to time not exceeding the maximum limit fixed by the State Government by passing resolution to this effect.

Rule - 33. Assessment and collection of revenue.

The Secretary of the Gram Panchayat or the Panchayat Samiti or the Zila Parishad, as the case may be, shall see that all revenue or other debts due to the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, which have to be brought to account, are correctly, promptly and regularly assessed, realised and credited/debited to the accounts of the fund of the Panchayat concerned and he shall accordingly arrange to obtain from his subordinates or from all the sources, where revenue arises, quarterly accounts and returns claiming credit for so much amount as has been paid into the bank, treasury or otherwise accounted for and cause them to be noted in the miscellaneous Demand Register in Form-10.

Rule - 34. Checks to leakage of revenue.

(1)     It shall be the duty of Secretary of the Gram Panchayat or the Panchayat Samiti or the Zila Parishad, as the case may be, to ensure that the revenue collected is correctly and promptly brought to account and there is no leakage and he shall also see that adequate measures are taken to achieve this end and also shall arrange for inspections of the accounts of the receipts carried out.

(2)     No amount due to the Gram Panchayat or the Panchayat Samiti or the Zila Parishad, as the case may be, shall be left outstanding without sufficient reasons and where such dues are irrecoverable, the order of the competent authority for its adjustment, remission, reduction of demand or write-off shall be sought without any delay.

Rule - 35. Credit to follow actual realisation.

No sum shall be credited as revenue, unless it has actually been realised. The credit shall follow and not precede the actual realisation.

Rule - 36. Refund of revenue.

(1)     Refund of money collected or credited into the Fund by mistake shall be made only on the demand of the person entitled to receive the money after producing proper authorisation of the competent authority and on no account will be drawn on the receipt of Secretary of the Gram Panchayat or the Panchayat Samiti or the Zila Parishad, as the case may be, and kept in the departmental chest.

(2)     Before admitting any demand for refund of such money, the original credit in the cash book and the relevant treasury challan shall be traced or receipt duly linked and an entry shall distinctly be made in these documents of the sum ordered to be refunded so as to guard against double or erroneous entertainment of a second claim. When tax or fee is to be refunded, a cross reference against the concerned entry shall also be given in the miscellaneous Demand Register.

 

CHAPTER 5 BUDGET

Rule - 37. Preparation of Budget Estimates of Gram Panchayat.

Every Gram Panchayat shall prepare budget estimates of its receipt and expenditure on Form-11 for the year commencing on 1st day of April next following. The budget estimates shall be prepared by the Secretary by 15th October and he shall submit it to the Gram Panchayat for scrutiny and the same shall be placed before the Gram Sabha for its approval before 28th February. The budget shall be passed by the Gram Sabha by a majority vote.

Rule - 38. Preparation of Budget Estimates of Panchayat Samiti and Zila Parishad.

Every Panchayat Samiti and Zila Parishad shall prepare annually a budget estimates of its receipts and expenditure on Form-12 for the year commencing on 1st day of April next following. The budget estimates shall be prepared by the Secretary of the Panchayat Samiti or the Zila Parishad, as the case may be, by 31st December and he shall submit it to the Finance, Audit and Planning Committee of the Panchayat Samiti or the Zila Parishad, as the case may be, for its close scrutiny or any modification as it may consider fit, whereafter the said committee shall submit the same to the Panchayat Samiti or the Zila Parishad, as the case may be, for approval on or before the 15th February. The budget shall be passed by the Panchayat Samiti or the Zila Parishad, as the case may be, by a majority vote, before the commencement of the next financial year.

Rule - 39. Process for Budget preparation by Panchayats.

While preparing the budget of the Gram Panchayat or the Panchayat Samiti or the Zila Parishad, as the case may be, the Secretary concerned shall take into account the following principles:-

(i)       in the process for budget preparation, the first step shall be the estimation of income of the Panchayat. For this, the income from own sources, by way of grants-in-aid, rural development programmes of State or Central Government or other authorities or institutions, as the case may be, of preceding year may be taken as the basis and in case the income is likely to increase or decrease due to known reasons, the same may be taken into account;

(ii)      the amount of loan, if any, expected to be received from the Government or any other financial institution and the recovery of loans already advanced by the Panchayat and interest thereon which is expected to be realised during the year shall be provided for in the budget estimates;

(iii)     the first part of the budget relating to Account-A, i.e. own income of the Panchayat shall be prepared by first providing for the expenditure on salaries and thereafter in order of priorities listed under rule 43 of these rules;

(iv)    the second part pertaining to Account-B relating to grants, which are for specific purposes, shall be in accordance with the purpose of the grant and the guidelines issued by the funding agency;

(v)      the Gram Panchayat shall prepare budget in accordance with five years micro-plan. The Panchayat Samiti and Zila Parishad shall also take into account long term plan while preparing their budget estimates; and

(vi)    the Secretary of the Panchayat concerned may take the help of other staff available with the Panchayat. In case expert staff is not available with the Panchayat, it may, subject to the availability of funds, hire an expert or expert agency for preparation of budget estimates.

Rule - 40. Guidelines for approval of budget.

While approving the budget estimates, the Panchayat shall follow the following guidelines :-

(i)       Panchayat shall not approve deficit budget;

(ii)      Only such works shall be included in the budget estimates for which the Panchayat has financial competence;

(iii)     Panchayat may take up new schemes or may execute old schemes but these schemes shall pertain only to such functions which are assigned to it under the Act or for such functions as are delegated to it from time to time;

(iv)    The part of the budget relating to grants, which are for specific purposes, shall be regulated in accordance with the purpose and the guidelines issued by the funding agency; and

(v)      The budget estimate from out of its own income, the Panchayat shall first provide for activities listed under rule 43 of these rules, in the order of priority as may be determined by the concerned Panchayat.

Rule - 41. Supply of copies of approved budget.

(1)     As soon as the budget estimates of the Panchayat are approved, copy thereof shall be pasted on its notice board.

(2)     The copies of the approved budget of the Panchayat shall be supplied,-

(i)       in case of Gram Panchayat, to the Block Development Officer concerned;

(ii)      in case of Panchayat Samiti, to the Deputy Commissioner through the District Panchayat Officer; and

(iii)     in the case of Zila Parishad to the Deputy Commissioner and the Director.

Rule - 42. Re-appropriation of funds.

Expenditure shall be made strictly in accordance with the provisions in the approved budget. However, changes or re-appropriation may be made in the budget from one Head to another, if it is felt necessary in public interest, or the receipts are less than the expected expenditure, or the receipts are more than the budget or expected expenditure:

Provided that the funds sanctioned by the funding agency for special schemes/works by way of grants or loans shall not be re-appropriated in any circumstances for any other scheme without the approval of the authority from which such funds are sanctioned.

Rule - 43. Budget head for expenditure.

All the provisions for the various expenditure must be made under the approved budget heads and budget codes, which are as under:-

Explanations.-

1.        Budget code for expenditure shall have five digits.

2.        First digit shall indicate receipt/income or expenditure of the Panchayat, as the case may be, and 1 shall stand for receipt/ income and 2 for expenditure.

3.        Second digit shall indicate Zila Parishad or Panchayat Samiti or Gram Panchayat, as the case may be, and 1 shall stand for Zila Parishad, 2 for Panchayat Samiti and 3 for Gram Panchayat respectively.

4.        Third digit shall indicate whether the funds are to be spent from Account-A or Account-B, 1 shall stand for Account-A and 2 for Account-B.

5.        Next two digits shall indicate expenditure head.

6.        Two more digits may be added for sub-heads, if specified by the State Government from time to time.

CHAPTER 6 EXPENDITURE

Rule - 44. Payment.

The Pradhan of the Gram Panchayat or Chairman of the Panchayat Samiti or Chairman of the Zila Parishad, as the case may be, and the Secretary of the Panchayat concerned, while incurring or authorising expenditure out of the Panchayat Fund shall observe the following canons of financial propriety, namely :-

(i)       the strict economy shall be observed at every stage;

(ii)      the same vigilance in respect of the expenditure incurred out of the Panchayat Fund shall be exercised as a person of ordinary prudence would exercise in respect of expenditure of his own money;

(iii)     the expenditure shall not prima facie be more than the occasion demands;

(iv)    no power shall be exercised in sanctioning expenditure or passing an order which will directly or indirectly be to their own advantage;

(v)      the money out of the Panchayat Fund shall not be utilized for the benefit of a particular person or section of the community, unless,-

(a)      the amount of expenditure involved is insignificant; or

(b)      a claim for the amount could be enforced in the court of law; or

(c)      the expenditure is in pursuance of a recognised policy or practice; and

(vi)    the amount of allowances granted to meet expenditure of a particular type shall be so regulated that the allowances are not on the whole a source of profit to the recipients. Money indisputably payable shall not, as far as possible, be left unpaid.

Rule - 45. Liability not to be incurred without budget provisions.

No expenditure from the Panchayat fund shall be incurred, save as may otherwise be provided in these rules, unless.

(i)       the necessary budget provisions to cover the charges exist ; and

(ii)      there exists a special or general sanction of the competent authority for the same:

Provided that mere existence of budget provision shall not constitute an authority in itself to incur the expenditure.

Rule - 46. Control over expenditure.

(1)     The Pradhan of the Gram Panchayat or the Chairman of the Panchayat Samiti or the Chairman of the Zila Parishad, as the case may be, and the Secretary of the Panchayat concerned shall take care not only to see that the total expenditure is kept within the limits of authorised appropriation but also that the funds allotted are spent in the interest and service of the Panchayat concerned and upon the objectives for which provisions have been made in its budget. In order to exercise proper control over expenditure, the Secretary concerned shall keep himself closely acquainted with the progress of expenditure, commitments made, and liability incurred but not paid.

(2)     It shall not be sufficient that the accounts of Panchayat shall be correct to the satisfaction of the Pradhan of Gram Panchayat or the Chairman of Panchayat Samiti or the Chairman of Zila Parishad, as the case may be, and the Secretary of the Panchayat concerned, and they shall have to satisfy not only themselves but also the audit,-

(i)       that a claim which has been accepted is valid;

(ii)      that a voucher is a complete proof of payment which it supports; and

(iii)     that the account is correct in all respects, and could safely be produced as a satisfactory and convincing evidence of facts, if required, in a court of law.

Rule - 47. Voucher.

(1)     Every payment, including repayment of money previously lodged in the Panchayat Fund for whatever purpose, shall be supported by a voucher setting forth full and clear particulars and proper classification in the accounts.

(2)     All claims for payments, as far as possible shall be presented on bills and where the claimant fails to do so, a separate bill in a proper form will be prepared by the office of the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, incurring the expenditure and the claimants bill shall be attached to it as a sub-voucher.

Rule - 48. Presentation of claims.

All claims for payment shall be presented at the office of the Panchayat, where these shall first be entered in the bill register to be maintained in Form 13. The claims shall then be checked and examined in regard to their admissibility with reference to the sanction, agreement, arithmetical accuracy etc. and passed for payment.

Rule - 49. Pay order.

(1)     Subject to provisions of these rules, no payment shall be made by a Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, or any voucher either in cash or by means of cheque unless it bears a pay order signed or initialled jointly, specifying therein the amount payable both in figures and words, by the Pradhan of Gram Panchayat or the Chairman of Panchayat Samiti or the Chairman of Zila Parishad, as the case may be, and the Secretary of the Panchayat concerned.

(2)     In the case of the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, if the payment is required to be made in cash, the payment order shall be recorded as under:-

"Pay by cash out of chest Rs._____ (Rupees_________)" and for payment by Cheque the pay order shall run as under:-

"Pay by cheque Rs.______(Rupees____________ only)".

Rule - 50. Acknowledgement of payment. ?

(1)     Separate acknowledgement, stamped where necessary, shall be taken, from the person receiving payment, at the time of making payment and shall be attached to the voucher concerned, except in the case of disbursement of pay of servants/staff of the Panchayat and allowances/honorarium to the office bearers where payees receipts can be taken on the bill itself or on the acquaintance roll. Where the payment is made to an illiterate person, the acknowledgment must be got attested by one or more witnesses.

(2)     In case of articles received by value payable post, the VPP cover together with the invoice or bill showing the details of items paid for may be regarded as voucher. The Secretary of the Panchayat concerned shall make a note on the cover to the effect that the payment was made through the post office and shall also cover charges for the postal commission.

(3)     All paid vouchers shall be, stamped "paid", signed and dated by the Secretary, so as to avoid their being used for a second time.

Rule - 51. Classification of bills and vouchers.

The Secretary of the Panchayat concerned shall see that proper classification has been recorded on the bills and vouchers before making "pay order" thereon. A reference of the bill for which payment is made by means of cheques shall also be given on the back of the counterfoil of the cheque to facilitate reference to the original voucher on which the charge has arisen.

Rule - 52. Establishment bills.

(1)     Pay bills shall be prepared Forms as prescribed in case of Government servants and will be supported by all or any of the following certificates/statements, namely:-

(a)      periodical increment certificate in Form-14;

(b)      last pay certificate in Form-15;

(c)      provident fund statement in Form-16; and

(d)      absentee statement and certificate to the effect that no leave has been granted to any employee of the establishment in Form-17.

(2)     Increment certificate and last pay certificate shall be attached to the first bill in which the periodical increments and the pay of persons either transferred or lent to the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, are drawn.

(3)     Except in the case of employees who have been dismissed or transferred or have resigned or died, the pay of any employee of the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, shall not be drawn before the first working day of the month following that in respect of which the pay has been earned:

Provided that if the first three days of the following month are holidays the pay may be disbursed on the last working day of the month concerned with the prior approval of competent authority.

(4)     The last payment of the employees pay and allowances in the event of his transfer or quitting the service of the Panchayat either on resigning or for any other cause, shall not be made until it has been ascertained that there are no amounts or demands outstanding against him. A certificate to this effect signed by the Secretary of the Panchayat concerned shall be attached to the bill in which such claims are drawn.

Rule - 53. Arrears to be drawn on a separate bill.

Arrears of pay bill shall not be drawn in the monthly pay bill but the same shall drawn on a separate bill in which reference shall be made to the previous bill(s) in which the charge was omitted or withheld or in which it was refunded by deduction or to any special order granting a new allowance consequent to which the claim has arisen. Such claims to pay and allowances above Rs.500/- which are more than 3 years old shall be got pre-audited from the audit agency in the office of the Director after sanction to the claim has been accorded by the competent authority. Arrears claim upto Rs.500/- and within 3 years time limit may be made without pre-audit.

Rule - 54. Fixed travelling and conveyance allowance.

Fixed travelling allowance and conveyance allowance shall be drawn in the pay bill and not on the travelling allowance bill of official/officer concerned. To every bill for the conveyance allowance a certificate shall be attached that the conveyance was actually maintained in good order and used by the official concerned in the performance of functions and duties of the Panchayat during the month under reference.

Rule - 55. Deduction from pay.

The Secretary of the Panchayat concerned shall be responsible for making proper deductions from pay bills on account of provident fund, insurance, income tax, house rent and recoveries of advances such as loans, overpayments etc. accounted for in accordance with these rules.

Rule - 56. Acknowledgement of pay.

The Secretary of the Panchayat concerned shall be personally responsible for the amount drawn on the bill signed by him till the amount is paid and legally valid receipt of the payee is obtained.

Rule - 57. Last pay certificate.

In the event of transfer of any of the servants of the Gram Panchayat and Panchayat Samiti, the Secretary of the Panchayat Samiti concerned and in the event of transfer of any of the servants of the Zila Parishad, the Secretary of the Zila Parishad shall issue a last pay certificate on Form-15.

Rule - 58. Establishment bill check register.

In order to facilitate the check of establishment bills and to ensure that no charge is paid over twice, pay check register shall be maintained on Form-18 in which the whole establishment of the Panchayat, paid from the Panchayat Fund, shall be recorded. As soon as a fresh appointment or revision of establishment is made, it shall be entered in the register together with the number and date of the sanction of the competent authority. Changes due to revision of establishment shall be initialled by the Secretary of the Panchayat concerned. The pay in this register shall be recorded for the month for which it was due and not for the one in which it was disbursed.

Rule - 59. Travelling and daily allowances bills.

(1)     Payment of travelling allowances of the office bearers of Panchayat shall be effected by means of travelling allowance bills on Form-19 and under the provisions of chapter-VII of these rules.

(2)     Payment of travelling allowance bills to the servants/staff of the Panchayats shall be effected by means of travelling allowance bills on such forms as is applicable to the servants of the State Government.

Rule - 60. Travelling allowance bill check register.

In order to avoid double payment of any claim, travelling allowances check register shall be maintained in Form-20.

Rule - 61. Other payments.

(1)     The charges on account of grants-in-aid, scholarship and stipends and other contingencies shall be paid by means of vouchers to be prepared in Forms-21, 22 and 23 respectively.

(2)     The account of postage stamps shall be kept in register in Form-24 which shall be attested by the Secretary of the Panchayat concerned or in his absence by a subordinate officer/official authorised by him in this behalf.

CHAPTER 7 HONORARIUM AND OTHER ALLOWANCES TO THE OFFICE BEARERS OF PANCHAYAT

Rule - 62. Honorarium.

(1)     There shall be paid a monthly honorarium to the office bearers of the Panchayat, except the members of the Gram Panchayat, at such rates as may be notified by the State Government from time to time:

Provided that the honorarium shall be payable to an office bearer only in respect of the office he is holding for the time being:

Provided further that no honorarium shall be paid to any office bearer for the period for which he remains under suspension and in case the suspension orders are revoked, the arrears of honorarium, for the period during which he remained under suspension, shall be paid.

(2)     Members of the Gram Panchayat shall be paid sitting fee for attending meetings of Gram Panchayat on such rates as may be notified by the State Government from time to time:

Provided that a member of Gram Panchayat shall not be paid sitting fee if he abstains from the meeting of the Gram Panchayat.

Rule - 63. Travelling and daily allowances to the office bearers of Panchayat.

There shall be paid travelling and daily allowances to the office bearers of the Panchayat, for performing journeys in connection with the affairs of the Panchayat with the approval of the Panchayat, at such rates and on such terms and conditions as may be notified by the Government:

Provided that the members of Parliament, members of State Legislative Assembly who are also members of Panchayats by virtue of the provisions of the Act shall not be entitled to draw travelling and daily allowances under these rules:

Provided further that an office bearer of the Panchayat shall be entitled to claim travelling and daily allowances from such Panchayat to which he has been directly elected and at such rates as are admissible to him in the said Panchayat.

Rule - 64. Certificate.

An office bearer of the Panchayat claiming travelling allowance shall record the following appropriate certificates on the travelling allowance bill on Form-19, namely:-

(a)      Certified that I was not provided with any free transport at the expense of the Government, Panchayat or any other local authority;

(b)      Certified that the travelling allowance claimed is in accordance with these rules and that the amount claimed therein is correct;

(c)      Certified that I have not received any amount in respect of this claim previously;

(d)      Certified that I did not travel in vehicle belonging to Panchayat;

(e)      Certified that I was not provided free travelling, boarding and lodging by the State or the Central Government, Semi Government, any other local authority or any Non-Government organisation; and

(f)       Certified that the rail or bus fare claimed by me in the bill is correct and was actually paid by me.

Rule - 65. Submission and verification of travelling and daily allowances bill.

(1)     The travelling and daily allowances bills of office bearers of the Panchayat shall be prepared on Form-19, which shall be filled in by the office bearer concerned and submitted to the Secretary of the Panchayat concerned.

(2)     The travelling and daily allowances bills in respect of the office bearers of the Gram Panchayat shall be verified and counter signed by the Pradhan of the Gram Panchayat and in respect of the office bearers of the Panchayat Samiti or Zila Parishad, as the case may be, shall be verified/counter signed by the Chairman concerned.

(3)     The expenditure on account of travelling and daily allowances bills in respect of office bearers of Panchayat shall be debitable to the respective Panchayat fund:

Provided that no claim on account of travelling and daily allowance of an office bearer of the Panchayat which is not preferred within one year of its becoming due shall be paid without pre-audit by the Audit Agency.

CHAPTER 8 STORES

Rule - 66. Stores.

(1)     The term "Stores" includes all articles and materials purchased or otherwise required for the use of or in the service of Panchayat, whether these are consumable like articles of stationery etc., or nonconsumable like instruments, furniture, etc.

(2)     The expenditure on stores shall include office expenditure and other expenditure (contingencies) and may be debited to specific works or purposes for which stores are purchased.

(3)     The stores in relation to the Panchayati Raj Public Works shall be dealt with under the provisions of Chapter-XI of these rules: Provided that if there is no specific provision with regard to the stores under Chapter-XI, the same shall be regulated under this Chapter.

Rule - 67. Purchases.

(1)     Stores shall be purchased according to the requirements and shall not ordinarily be purchased in large quantities above than the immediate requirements.

(2)     The immediate requirements of the stores shall be determined and approved by the Panchayat.

(3)     For the purpose of purchase and procurement of the stores, every Panchayat shall constitute a sub-committee in the following manner, namely:-

(a)      in the case of a Gram Panchayat, the Pradhan, the Up-Pradhan, two ward members to be nominated by the Gram Panchayat, and the Secretary of the Gram Panchayat;

(b)      in the case of a Panchayat Samiti, the Chairman, the ViceChairman, three members to be nominated by the Panchayat Samiti, and the Secretary of the Panchayat Samiti; and

(c)      in the case of a Zila Parishad, the Chairman, the ViceChairman, five members to be nominated by the Zila Parishad, and the Secretary of the Zila Parishad.

(4)     Stores shall ordinarily be purchased either from the Controller of the Printing and Stationery Department of the State Government or from persons or firms who are the approved rate contractors on the list of the Controller of Stores, Himachal Pradesh, without inviting any tender or quotation.

(5)     Stores may also be purchased and procured by the Panchayat from the open market in the following circumstances/manner, namely:-

(a)      when the value of stores to be purchased is more than fifty thousand rupees, by inviting tenders through advertisement in at least two newspapers having wide circulation in the area; or

(b)      when the value of stores is less than fifty thousand rupees but more than one thousand rupees, by inviting quotations from at least three persons/firms; or

(c)      when the value of stores is less than one thousand rupees, from the open market:

Provided that when a person or firm, as the case may be, quoting lowest rates is unable to supply the stores by the specified date and the same are urgently required and it is more convenient and without much extra expenses to purchase stores from the person or firm who has quoted next higher rates, the same may be purchased from such person or firm by assigning reasons for the same, in writing, so that the said reasons are available at the time of audit of accounts:

Provided further that the reasons under foregoing proviso shall not be necessary if the purchase of stores is of the value not exceeding one thousand rupees.

Rule - 68. Forms and registers.

The Forms and registers required under the Act and the rules made thereunder shall be got printed, purchased and procured from the Himachal Pradesh Government Press by the District Panchayat Officer and in case the said press is unable to supply the Forms and registers, the said officer may have a recourse to open market by floating tenders in case the cost of printing and supply exceeds fifty thousand rupees and in case the cost of printing and supply is less than fifty thousand rupees, by inviting quotations from at least three persons or firms.

Rule - 69. Receipt of stores.

All stores when received shall be examined, counted, measured or weighed, as the case may be, at the time of taking delivery and shall be entered in the stock register immediately. A certificate shall be given at the end of the entries for any single day by the official incharge of stores authorised by the Gram Panchayat or Secretary of the Panchayat Samiti or the Zila Parishad, as the case may be, stating that the stores have been received in proper condition and according to specifications. Surplus if any, shall be indicated as additional receipt and shortages, if any, shall be indicated in red ink.

Rule - 70. Issue of stores.

Articles of stores shall be issued against proper indents and written acknowledgments which shall be obtained from the person to whom the stores have been ordered to be issued by the Pradhan and Secretary of Gram Panchayat or Secretary of the Panchayat Samiti or the Secretary of the Zila Parishad, as the case may be. Where the indents are modified, the indenting officer/ official shall be informed of the modification.

Rule - 71. Storage.

The official entrusted with the custody of stores of any kind shall be personally responsible for their safe custody for keeping them in good condition and for protecting them from damage or deterioration. Any loss or damage shall be immediately brought to the notice of the Pradhan in the case of Gram Panchayat and to the Secretary concerned in the case of Panchayat Samiti or Zila Parishad, as the case may be.

Rule - 72. Accounts of stores.

(1)     The official incharge of store shall maintain the following registers, namely :-

(a)      stock register of non-consumable articles in Form-25;

(b)      stock register of consumable articles other than stationery and printed material in Form-26;

(c)      register of printed material in Form-27; and

(d)      stationery register in Form-28.

(2)     The official incharge of store shall prepare a half yearly and an annual return showing receipt and consumption of stores:

Provided that the Secretary of the Gram Panchayat shall maintain the relevant register on the forms specified under the General Rules.

Rule - 73. Physical verification.

(1)     A physical verification of all stores shall be made by the Pradhan in the case of a Gram Panchayat and by the Secretary concerned in the case of a Panchayat Samiti or a Zila Parishad, as the case may be, at least once in six months and invariably in April every year. The result of the verification shall be recorded in writing. During the verification in April, the condition of each article shall be indicated against it in the stock register.

(2)     Any discrepancy noticed shall be indicated in the relevant stock register, the surplus being treated as additional receipt and the shortage being indicated in red ink. The cost of shortages shall be recovered or got written off after proper investigation, under the orders of the competent authority. The articles of stores which are found to have become useless or obsolete or have been rendered surplus and cannot be put to any profitable use, shall immediately be reported to the competent authority for sanctioning disposal by auction or write off, as the case may be.

(3)     The competent authority shall ensure that in explaining discrepancies, losses are not adjusted against surplus stores.

CHAPTER 9 DEFALCATION AND LOSSES AND ABANDONMENT OF CLAIMS

Rule - 74. Responsibility for loss sustained through fraud etc.

Every officer/official of the Panchayat shall be responsible not only for any loss sustained by the Panchayat through fraud or negligence on his part but also for the loss arising out of fraud or negligence on the part of any other servant, to the extent to which it may be shown that he indirectly contributed to the loss by his own action or negligence.

Rule - 75. Report of an enquiry into losses.

(1)     Whenever any loss of money, revenue or receipts, stamps, stores, etc., held by or on behalf of the Panchayat Fund, caused by defalcation or otherwise is discovered, it shall immediately be reported in writing to the District Panchayat Officer in case of Gram Panchayat, to the Deputy Commissioner in the case of Panchayat Samiti and to the Director in case of Zila Parishad even when such loss has been made good by the officer/official responsible for it.

(2)     If the loss is detected by audit in the first instance, the auditor shall report it immediately to the Pradhan and Secretary of the Gram Panchayat or Secretary of the Panchayat Samiti or Secretary of the Zila Parishad, as the case may be, and to the District Panchayat Officer in the case of the Gram Panchayat, to the Deputy Commissioner in case of Panchayat Samiti and to the Director in case of Zila Parishad.

(3)     Any serious loss of immovable and movable property by any natural calamities like fire, flood, earthquake, etc., shall be reported by the Secretary of the Panchayat concerned to the Deputy Commissioner in the case of Gram Panchayat and to the State Government through Director in case of Panchayat Samiti and Zila Parishad.

(4)     The reports under sub-rules (1), (2) and (3) shall immediately be submitted to the authority concerned even if there is involved enquiry or investigation. In cases where enquiry or investigation is involved, a further complete report shall be submitted after the completion of the said enquiry or investigation, stating therein the causes of loss sustained by the Panchayat and the prospects of effecting recovery and punishment to be given to the defaulting officer/official, if any, and any other person who is found involved, directly or indirectly, in causing such loss to the Panchayat.

(5)     Notwithstanding anything contained in sub-rules (1) to (4), if reasonable suspicion arises that a criminal offense has been committed in the matter, the Pradhan/ Secretary of Gram Panchayat or Secretary of Panchayat Samiti or Zila Parishad, as the case may be, shall lodge a report to the nearest police station for making investigation in the case.

Rule - 76. Recovery of overpayments.

The Secretary of the Panchayat concerned shall be responsible for making prompt recovery of over-payments, if any, made out of the Panchayat fund even though made in good faith; and while making recommendation, for waiving such recovery for special reasons, full justification shall be given in support thereof, i.e., practical impossibility of recovery of such over- payments. Recovery of such over-payments may be waived only with the approval of the competent authority.

Rule - 77. Write off and disposal of stores and other losses.

(1)     The stores of the Panchayat, rendered unserviceable in normal working or use may be written off by the authorities as specified in Appendix-"A" or "B" or "C, as the case may be:

Provided that the store rendered unserviceable in normal working or use is first examined and certified to be so by a committee constituted for the purpose by the Block Development Officer in the case of the Gram Panchayat, the District Panchayat Officer in the case of the Panchayat Samiti and the in the case of the Zila Parishad. Necessary entry to this effect shall be made in the relevant stock register:

Provided further that if the stores rendered unserviceable in normal working or use can be sold, the same shall be disposed of, by way of public auction and the sale proceeds thereof shall be credited in the Panchayat Fund of the concerned Panchayat forthwith.

(2)     (a) All other losses of money, irrecoverable revenue, loans, advances or stores other than those referred to in sub-rule (1), may be written off by the Panchayat only with the prior approval of the Government;

(b) A list of all such amounts shall be prepared once in a year and submit to the Panchayat, at its following next meeting for consideration with the reasons and recommendations of the Secretary of the concerned Panchayat to write off the same;

(c) The Secretary concerned shall see before making his recommendations under clause (b) that the defaulter has no attachable property and that all means of recovery have been tried and found unsuccessful;

(3)     In cases where any loss is caused through fraud, forgery, defalcation, serious negligence of any servant warranting disciplinary action, the Panchayat shall review such a case and take appropriate disciplinary action before recommending the case to the Government for approval to write off; and

(4)     Necessary entry to this effect shall also be made in the register of write off in Form-29 as well as in the miscellaneous demand and collection register in Form-10 and on the counterfoil of the bill, where necessary.

Rule - 78. Grant of remission of revenue to lessees and contractors.

All the lessees and other persons who have entered into any contract with Panchayat shall be bound by the terms of their leases or contracts and no remission shall be granted to them except in the following cases:-

(i)       remission may be granted to lessees and contractors only in the case in which they are prevented from carrying out their part of lease or contract by reason of the occurrence of some extraordinary extrinsic cause which could not reasonably have been anticipated;

(ii)      the amount of remission granted shall not exceed the proportionate amount payable under the lease or contract for the period for which the lessee or the contractor was prevented from carrying out his part of the lease or contract on account of such extraordinary cause;

(iii)     penalties provided in the lease or contract shall be strictly enforced in accordance with the terms and conditions of the leases or contracts. Penalties for late payment of the amount due to the Panchayat under the lease or contract shall not be remitted except in the case where the payment of instalments of the amount due are, in the opinion of the Panchayat, fairly regular and the whole amount due to the Panchayat under lease or contract is paid before the end of the period to which the lease or contract relates ; and

(iv)    the remission under clauses (ii) and (iii) shall be sanctioned by the Panchayat only with the prior approval of the Director.

CHAPTER 10 AUDIT AND INSPECTION

Rule - 79. Audit of Panchayats.

(1)     The accounts of all receipts and expenditure of every Panchayat shall be audited by the Auditor(s) ordinarily before the closure of the succeeding financial year: Provided that the accounts of all receipts and expenditure of the Panchayat, for the complete financial year or years, preceding the date of audit, shall be taken up for the audit.

(2)     The Secretary of the Panchayat concerned shall be responsible for producing the relevant records to the auditor(s) for conducting the audit and shall keep all records, statements and registers of accounts ready for the purpose of audit.

(3)     Every Panchayat through its Secretary shall make suitable arrangements to enable the auditor(s) to conduct the audit properly.

(4)     The audit of the,-

(i)       Gram Panchayat shall normally be conducted by the auditor(s);

(ii)      Panchayat Samiti by the District Audit Officer; and

(iii)     Zila Parishad by the Deputy Controller (Audit) with the assistance of the District Audit Officer of the Directorate of Panchayati Raj Department.

Rule - 80. Procedure for conduct of audit.

(1)     The manner and procedure of audit shall be such as may be notified by the Director from time to time.

(2)     The auditor(s) while auditing the accounts of Panchayats shall be competent to check all receipts and expenditure and also to physically verify,-

(a)      all receipts and investments; and

(b)      records, stores, stocks and other property.

(3)     While conducting the audit, the auditor(s) shall ensure,-

(a)      that the funds have been expended only on the purpose authorised by the Act or the rules made thereunder;

(b)      that the money made available for the expenditure has been provided for in the manner specified in the Acts or rules;

(c)      that the funds earmarked for specific purpose have been utilised for such purpose alone ; and

(d)      that the sanction of the authority competent to sanction the expenditure has been obtained and any deviation shall also be brought to light.

(4)     The auditor(s), while conducting the audit of accounts of the Panchayats, shall take into account the following matters, namely:-

(a)      examination of administration reports dealing with public expenditure;

(b)      scrutiny of orders delegating financial authority;

(c)      scrutiny of rules and orders affecting expenditure and other transactions subject to audit;

(d)      scrutiny of the financial position and suggestions for generating income or reducing expenditure for maintaining equilibrium;

(e)      scrutiny of outstanding realisation and collection of information from the assessees to ensure the correctness of the arrears;

(f)       scrutiny of expenditure with a view to see that it is necessary, and to make suggestions designed to stop extravagant expenditure;

(g)      scrutiny of refunds of rates and taxes to ensure that there is no leakage of revenue;

(h)     scrutiny of travelling allowance bills in order to ensure that these are not made a source of profit;

(i)       scrutiny of bills of the office bearers who countersign their own bills with special regard to the necessity and frequency of journeys and halt to see if they show any special feature which cannot be objected to in the ordinary audit;

(j)       scrutiny of all travelling allowances bills particularly journeys by motor with a view to checking excessive demands;

(k)      scrutiny of countersignatures on bills to show if the controlling officer is not showing undue laxity;

(l)       suggestion for transfer of headquarter in order to effect economy in travelling allowance charges and to facilitate the work of office bearers concerned;

(m)    scrutiny of actual expenses on account of hire of conveyance and other charges with a view to fixing a suitable monthly allowance;

(n)     scrutiny of frequent bills for short journeys;

(o)      scrutiny of bills for pay and allowances with a view to see that the allowances or scale of pay are not excessive in comparison with that of similar posts under Government or in adjoining local bodies;

(p)      as regards supplies and services.-

(i)       the insistence of calls for tenders being made before contracts are given and on comparison of local rates with those prevailing at important trade centres before placing order; and

(ii)      comparison of rates in the neighbouring localities for the supplies obtained and contracts entered;

(q)      scrutiny of water and electric supplies and other similar works the comparison of quality of the work done with the consumption of material; and

(r)      scrutiny of water supply, electricity and other contingent charges with a view to suggesting the possibility of effecting economy.

Rule - 81. Submission of audit reports.

(1)     The auditor(s) on the completion of audit shall prepare an audit report of the accounts of the Panchayat on such proforma as may be prescribed by the Director from time to time and submit the same as soon as possible but not later than fifteen days,-

(i)       in the case of the Gram Panchayat, to its Secretary, Block Development Officer and the District Panchayat Officer concerned;

(ii)      in the case of the Panchayat Samiti, to its Secretary and the District Panchayat Officer concerned and the Director; and

(iii)     in the case of the Zila Parishad to its Secretary and the Director.

(2)     The audit shall bring out in a concise way the important irregularities detected by the auditor(s). The minor objections, if any, may be settled by the auditor(s) at the spot by discussion with the Pradhan of the Gram Panchayat or Chairman of the Panchayat Samiti or Chairman of the Zila Parishad, as the case may be, and the Secretary of the Panchayat concerned or through an objection statement which shall be handed over at the end of the audit to the Secretary of the Panchayat concerned.

Rule - 82. Re-audit.

If the Director is not satisfied with the audit of any Panchayat conducted by the auditor(s), he may order the re-audit of the Panchayat by another auditor(s) or a group of auditor(s) so authorized him in this behalf and such auditors shall follow the same procedure as is required under these rules.

Rule - 83. Compliance report.

(1)     On receipt of the audit report, the Pradhan and the Secretary of the Gram Panchayat or the Chairman and the Secretary of the Panchayat Samiti or the Chairman and Secretary of the Zila Parishad, as the case may be, shall attend to the audit report and the statement of minor objections promptly, and place the report before the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be. The compliance reply of audit report duly approved by the Panchayat concerned shall immediately be forwarded to the authorities specified in sub-rule (1) of rule 81 of these rules in an annotated form by the Secretary of the Panchayat concerned for keeping a watch on the progress of their clearance.

(2)     The Block Development Officer shall monitor the progress of the disposal of the outstanding audit paras of the Gram Panchayats falling under his jurisdiction in the monthly meetings of the staff/Panchayat Secretaries and send the report thereof alongwith his comments to the District Panchayat Officer concerned. If any Gram Panchayat fails to settle the outstanding audit paras in spite of repeated reminders within six months from the date of issue of audit report, the Block Development Officer concerned shall stop the grants of that Gram Panchayat. The District Panchayat Officer of the concerned district shall quarterly review the progress of the disposal of the outstanding audit paras of the Gram Panchayats and shall take efforts for disposal of such audit paras. In case the audit paras are not settled despite taking all measures then a list of such paras Gram Panchayat wise shall be forwarded to the Director.

(3)     The Deputy Controller (Audit) shall monitor the progress of the disposal of the outstanding audit paras of the Panchayat Samitis and Zila Parishads and report the same to the Director.

Rule - 84. Report of the fraud or embezzlement, etc.

Where fraud, theft or an embezzlement is detected or may reasonably be inferred from suspicious circumstances, or where any irregularity is noticed in the accounts, the auditor shall forthwith report confidentially the circumstances in writing to the Director through the District Panchayat Officer in the case of Gram Panchayat and directly in the case of Panchayat Samiti and Zila Parishad.

Rule - 85. Settlement of audit objections.

An audit objection shall be revoked after the requirements of the audit are fulfilled or sanction of the competent authority is accorded as desired by the Auditor(s) in audit report.

An audit objection shall be considered to have been finally settled only if so agreed by the District Audit Officer barring embezzlement or misappropriation of funds for which only the Director shall be competent in the case of the Gram Panchayat. An audit objection shall be considered to have been finally settled if so agreed by the Director in the case of the Panchayat Samiti and Zila Parishad, as the case may be.

Rule - 86. Progress report of pending objections.

A half yearly progress report on the settlement of pending objections shall be sent in duplicate by the Secretary of the Panchayat concerned, to the District Panchayat Officer and the Director so as to reach them not later than the end of the month following the half year to which it pertains. The District Panchayat Officer shall compare it with their books in order to ensure that no pending objection has been left out of the statement, and in case there be such left out audit paras, he shall cause it to be added in the list and shall forward a copy thereof to the Director with his observations.

Rule - 87. Publication of report of pending paras.

(1)     District Panchayat Officer will publish Blockwise report of pending paras of Gram Panchayat/Panchayat Samiti every year.

(2)     Audit party will carry with it block wise report of such pending paras of previous year when it goes for audit next year.

(3)     Audit party will conduct the audit of Gram Panchayat/Panchayat Samiti upto February every year and report of the pending audit objection will be got prepared by the auditors in the month of March every year. Copies of the report will be sent to Block Development Officer and Panchayat Inspector.

(4)     Audit paras which are pending for more than one year will be published Districtwise every year by the District Panchayat Officer concerned.

(5)     A copy of the Districtwise report will be sent to the Deputy Controller (Audit), who shall monitor the settlement of audit paras. Six months time will be given for compliance to the Secretary of the Panchayat concerned and in March next year a report will be published for unsettled paras by the Deputy Controller (Audit). Such report shall forthwith be brought to the notice of the Director.

(6)     The Director shall take appropriate action for the settlement of the outstanding audit paras contained in the report submitted to him under subrule (5).

Rule - 88. Utilisation certificates.

The Auditor(s), while auditing the account of Grants-in aid placed at the disposal of the Panchayat, by the State or Central Government or any other institution, as the case may be, shall ensure that utilisation certificates thereof to the effect that the grants have been utilized by the Panchayat, for the purpose for which these have been sanctioned, have been submitted to the authorities who have sanctioned the said grants.

Rule - 89. Maintenance of records of audit reports.

The Panchayat shall maintain a register in Form-30 showing the receipt and disposal of the audit/inspection reports issued by the Auditor(s) in order to watch their proper disposal. This register shall also include the status of the audit paras raised and settlement thereof.

Rule - 90. Inspection and access to Panchayat records etc.

With a view to exercise a proper control over the Panchayats in respect of financial and other matters, the Director/Additional Director/Joint Director/Deputy Director/ Deputy Controller (Audit)/District Panchayat Officer/Block Development Officer/District Audit Officer/Inspector/Sub-Inspector of the Panchayati Raj Department may conduct inspection of the accounts books, proceedings and records, and to enter on and inspect any work/scheme in progress or completed, of any Panchayat. The Deputy Commissioner or the SubDivisional Officer (Civil) may also conduct the inspection of records, proceedings and the works/schemes of the Panchayat which are in progress or completed.

Rule - 91. Scope of inspection and access to Panchayat records etc.

(1)     The officers/officials authorised under rule 90 shall be responsible to give guidance to the persons concerned in the proper maintenance of accounts and records etc. of the Panchayat and also to help them in the clearance of audit objections raised by the auditor(s) in audit reports. Such officers/officials in the course of inspection shall be entitled to make such queries and observations and to call for such vouchers, statements, reports and other relevant records in relation thereto as may be necessary, and the Panchayat concerned through its Chairperson and Secretary shall make arrangements for the supply thereof. The scope of inspection shall inter-alia extend to see that-

(a)      all the registers prescribed for various purposes particularly for grants-in-aid and loans, if any, received from any funding agency/lending institution, and their further utilisation has been duly maintained in accordance with the rules;

(b)      all items of receipts, expenditure and any other dues, which have been brought to account are correctly and promptly assessed, realised and credited/debited to the accounts of the Panchayat concerned;

(c)      the initial accounts of demand have been properly prepared and all items of demand have been entered in the accounts and that the demand arrived at in the case of taxes and fees is correct and that adequate steps have been taken to enforce recovery ;

(d)      demand, collection and balance statements are regularly prepared and agreed with the subsidiary registers of demand and collections;

(e)      no amount due to the Panchayat is left outstanding in its books without sufficient reasons;

(f)       a proper watch is kept over the growth of revenue by obtaining supplementary lists of persons or property liable to be taxed;

(g)      the write off is supported by competent sanction and there is a record to show that the items are really irrecoverable;

(h)     the arrears have been transferred at the end of the year to the arrears and demand register;

(i)       the bills issued for collection are in prescribed form, serially numbered and the stock account of bill books, receipt books, etc., are properly maintained;

(j)       all properties usually leased or liable for lease have been leased out;

(k)      an agreement or contract wherever necessary, has been entered into setting forth the conditions of agreement or contract;

(l)       security has been taken for due fulfilment of the terms of the lease, agreement or contract;

(m)    due regard to the Government share and public contribution has been kept in formulating and executing the schemes;

(n)     the sanction (technical, administrative or financial) either special or general of the authority competent to sanction expenditure has been obtained;

(o)      the character and pattern of schemes required to be formulated by the Panchayats under the Act or rules has not been changed, without proper authority;

(p)      the works or schemes have been executed within the prescribed period and in accordance with the original plan, design and sanctioned estimates;

(q)      all claims are in accordance with the rules, guidelines and on the prescribed forms;

(r)      canons of financial proprieties and other requirements to expenditure and rules relating to the method of payments have been duly observed; and

(s)      the receipt and expenditure is correctly classified.

(2)     The officers/officials while carrying out inspection shall be competent to physically verify-

(a)      the cash;

(b)      the stores and stocks;

(c)      the proceedings and other records; and

(d)      the works in progress or completed.

Rule - 92. Inspection reports.

(1)     The officers/officials of the departments of Panchayati Raj and Rural Development conducting the inspection of the Panchayats shall issue their inspection reports to the Panchayat concerned. These reports shall be dealt with in the office of the Panchayat concerned in the same manner as the audit reports under these rules are dealt. The departmental officers shall specifically see to the disposal of the previous inspection reports as well as the audit reports at the time of inspection.

(2)     The Deputy Commissioner or the Sub Divisional Officer (Civil), as the case may be, conducting inspection of the Panchayats shall submit their inspection reports to the State Government through Director.

CHAPTER 11 PANCHAYATI RAJ PUBLIC WORKS RULES

Rule - 93. Manner of execution of works.

(1)     The Panchayat shall execute works out of the funds available in Account - A and Account-B-

(A)     through the participatory committee constituted by the Panchayat concerned which shall have the following composition, namely:-

(i)       in the case of the Gram Panchayat, it shall comprise of,-

(a)      Pradhan/Up-Pradhan of the concerned Gram Panchayat;

(b)      Gram Panchayat member of the concerned ward;

(c)      one member from the Mahila Mandal(s);

(d)      one member from Yuvak Mandal(s);

(e)      [XXXXXXXXXXXXXXXXXX]

(ii)      in the case of the Panchayat Samiti or Zila Parishad, as the case may be, it shall comprise of,-

(a)      not more than two office bearers of the Panchayat concerned one of whom shall be the member of the ward in which the work is to be executed ;

(b)      two or three Sabha members from the village(s) who are likely to be benefited from the execution of the said work;

(c)      two women members who are representatives of the Mahila Mandals in the village(s) wherein the work is proposed to be executed ;

(d)      at least one teacher from the educational institution of the area concerned, if the work is likely to be beneficial to the said educational institutions ;

(e)      one or two representatives from Non-Governmental Organisations/ Yuvak Mandals if they are functional in that area, where work is proposed to be executed :

Provided that separate participatory committee shall be formed for each work and such committee shall be responsible for maintaining complete transparency in its functioning by strictly adhering to the following norms of financial propriety:-

(i)       the participatory committee shall authorise one of its members who shall act as President and one member as Secretary-cum-Treasurer;

(ii)      the participatory committee shall sign an agreement with the Panchayat for executing work. The said agreement will be signed by the secretary on behalf of the Panchayat concerned and President of the participatory committee on behalf of the participatory committee;

(iii)     the participatory committee shall decide on its own about the mode of execution of work, its supervision, procurement of material etc., in order to ensure that work is executed properly;

(iv)    the participatory committee shall be given funds by the Panchayat to make payments. The committee shall not ordinarily keep any money with it and make payments within seven days of receiving of funds from the Panchayat.

In case the work is major, money shall be kept by the committee in a scheduled bank or post office account, to be operated by the President and Secretary-cum-Treasurer of the committee on the joint signatures;

(v)      the participatory committee shall keep full account of the expenditure incurred on the work executed by it. The guidelines of the scheme under which funds have been made available will prevail for deciding the mode of execution; and

(vi)    the participatory committee shall engage the labour on the minimum of the wages as may be notified by the State Government from time to time. The materials shall be purchased/procured under the provisions of Chapter-VIII of these rules;

(B)     through a registered body such as Mahila Mandals, Yuvak Mandals, Watershed Development Committees, etc. and they shall have to adhere to follow the same financial proprieties as in the case of works executed through the participatory committees; and

(C)     The Panchayat may get the works executed through the Contractors by inviting quotations or tenders if the cost of work is more than the value of Rs. 5.00 lacs:

Provided that for execution of work first preference shall be given to Participatory committee.

(2)     For the execution of works of Gram Panchayats in respect of Account-B, exceeding Rs.50.000/- Junior Engineer shall record entry in the Measurement Book and for the works costing less than Rs. 50,000/-, the entries thereof shall be recorded in the Measurement Book by the Takniki Sahayak. For the execution of works of Gram Panchayats in respect of Account-A, all the relevant records shall be maintained by the Gram Panchayat through its Secretary with the assistance of the Takniki Sahayak or technical authority.

(3)     For the execution of works of the Panchayat Samiti and Zila Parishad in respect of Accounts-B, the Junior Engineer shall record entries in the Measurement Book and the same shall be subject to the test check by the Assistant Engineer or Executive Engineer keeping in view their technical sanction limit as per Appendix-A. For the execution of works of Panchayat Samiti and Zila Parishad in respect of Account-A, all the relevant records shall be maintained by the Panchayat concerned through its Secretary with the assistance of the technical authority.

(4)     The works executed by the Panchayats under sub-rule(1) shall be monitored by the technical authority of the Panchayati Raj and Rural Development Departments.

(5)     Notwithstanding anything contained in sub-rule(1), the works of the Panchayats may also be executed departmentally through the Junior Engineer, Assistant Engineer and Executive Engineer of the Rural Development and Panchayati Raj Departments under these rules.

Rule - 94. Preparation of estimates.

(1)     All works costing more than Rs.50,000/- shall be taken up by the Panchayat for execution only after the administrative approval and technical sanction on the estimates prepared by the Panchayats. For standard works like school rooms, mahila mandal bhawans, village pavements., irrigation kuhls etc. standard estimate given in Civil Engineering Manual of Rural Development Department issued on 1.1.2001 shall be used:

Provided that in case there is much deviation from these standard estimates due to site conditions, the standard estimate may be modified by the competent authority who is competent to accord sanction as per Appendix"A".

(2)     No estimate for works costing less than Rs.25,000/-, prior to start of work, shall be required. However, a rough cost estimation shall be done by the technical authority competent to accord technical sanction.

(3)     All estimates for works costing more than the value of Rs.25,000/- but less than Rs.50,000/- shall be prepared by the Takniki Sahayak of the gram Panchayat and for the works costing Rs. 50,000/- or above shall be prepared by the Junior Engineer in the case of Gram Panchayat. In the case of the Panchayat Samiti and Zila Parishad, all estimates for works costing Rs.50,000/- or above shall be prepared by the Junior Engineer and a rough cost estimation shall be made by the Junior Engineer where the cost of work is below Rs.50,000/-.

(4)     The estimates to be prepared under this rule shall contain the following particulars:-

(i)       availability of land;

(ii)      lead chart showing distance from where the material is to be brought;

(iii)     the requirement of material and the cost based on the prevailing market rates;

(iv)    plan of the proposed alteration of building/structure/civil works clearly showing the existing structure in distinct colours, and proposed original construction; and

(v)      contour site plan.

(5)     While preparing the estimates of the works to be executed by the Panchayats, latest Himachal Pradesh Public Works Departments schedule shall be used.

(6)     No contractor profit or over head charges shall be included in the estimate if the work is being executed by any agency other than contractor. In case the sanctioned estimate is likely to exceed by more than 15%, the revised estimate shall be prepared and submitted immediately by the technical authority specified under Appendix-"A", to the Panchayat concerned.

Rule - 95. Administrative approval and technical sanction.

(1)     The technical authority authorised to give technical sanction under Appendix-"A" shall submit a duplicate copy of estimate to the next higher technical authority for record (not applicable for Executive Engineers). Each technical sanctioning authority shall maintain a register of sanctioned estimates in Form-31.

(2)     Technical sanction/administrative approval and Financial sanction once accorded shall be valid till the completion of work. In case the funds have been sanctioned under particular work by the State or the Central Government or any other Local Authority, as the case may be, and where authorities for giving technical sanction, administrative approval and expenditure sanctions have been specified in the guidelines issued by the Central Government or any other Local Authority, as the case may be, then such guidelines shall be applicable for the same.

Rule - 96. Awarding of works and signing of agreement etc.

(1)     When the Panchayats intends to execute any work, it shall decide the manner of execution of the same and in case it is decided by the Panchayat to execute the work at its own level through the participatory committee or through a registered body under rule 93 of these rules, as the case may be, then the Panchayat shall enter into an agreement with the participatory committee or the registered body, as the case may be, format given at Appendix-E.

(2)     Notwithstanding anything contained in sub-rule(1), when it is so required by the funding agency, the Panchayat shall enter into an agreement with the said agency.

Rule - 97. Inviting of quotations/tenders for allotment of works.

(1)     Unless the work is to be executed departmentally or through the participatory committee or registered body under rule 93 of these rules, the works shall be executed by the Panchayat by inviting tenders through advertisement in at least two leading newspapers having wide circulation in the area, when the cost of the work is of the value of more than Rs. 5.00 lacs.

(2)     The item rate tenders shall be invited for all works costing more than the value of Rs.5.00 lacs. The procedure for preparation of tender document and awarding of tender and work order shall be the same as is followed by the Public Works Department of the State Government.

Rule - 98. Authority competent to invite quotations/ tenders.

For inviting quotations/tenders for the execution of works, the following shall be the competent authorities, namely:-

(a)      in the case of works of the Panchayat costing more than the value of Rs.5.00 lacs and upto Rs. 10.00 lacs, through its Secretary by inviting tenders, who may take the assistance of the Assistant Engineer concerned for inviting and finalisation of the tender and the said Assistant Engineer shall render the assistance desired by the Secretary; and

(b)      in the case of works of the Panchayat costing more than the value of Rs. 10.00 lacs, through its Secretary by inviting tenders, who may take the assistance of the Executive Engineer concerned for inviting and finalisation of the tender and the said Executive Engineer shall render the assistance desired by the Secretary.

Rule - 99. Extension of time.

In case the work of the Panchayat, entrusted, to the contractor or any other agency for its execution, and the said work is not completed within the stipulated time limit for reasons beyond the control of such contractor/other agency, the time limit provided for the execution of that work may be extended by the Panchayat concerned on an application by the said contractor/agency to the satisfaction of the Panchayat concerned within twenty days of the circumstances due to which the said work could not be completed within the time schedule and the Panchayat may extend the time limit reasonably.

Rule - 100. Electrical works.

All the electrical works of Panchayats shall be carried out with the approval of the technical authority or as per the instructions issued by the Government from time to time.

Rule - 101. Maintenance of Measurement Book.

Measurement Book for the maintenance of works shall be maintained on such form as prescribed by the Central Public Works Department. Maintaining of measurement books shall be essential for all works irrespective of the executing agency.

(1)     Measurement book shall be maintained in the following manner:-

(a)      for all works costing less than Rs. 3.00 lacs, no detailed measurement shall be necessary and only stage-wise entries shall be made in the measurement book;

(b)      for all works costing Rs. 3.00 lacs or above, the detailed measurements shall be made in the measurement book;

(c)      the Junior Engineers shall countersign measurement books of Takniki Sahayaks and Assistant Engineer shall countersign the measurement books of Junior Engineers; and

(d)      all measurement books shall be issued to the Secretary of the Panchayat for onward transmission to the Taniki Sahayak or the Junior Engineer, as the case may be, by the concerned Executive Engineers.

(2)     The technical authority, while making entries in the measurement book, shall take into account the following steps:-

(i)       all entries in the measurement book shall invariably be made in ink;

(ii)      the final measurement of work shall be taken and recorded within fifteen days of the completion of work, and in case where the provisions of clause (i) cannot be, complied with, the person responsible for recording the measurements shall record the reasons for the delay;

(iii)     when any payment is made or the work measured, each page of the book recording measurements shall be scored out by diagonal red ink lines and an endorsement shall be made in red ink on abstract of cost giving a reference to the number and date of payment voucher;

(iv)    when a measurement/check measurement book has been completely written up and payments have been made, it shall be carefully scrutinized by the Assistant Engineer;

(v)      all the measurement books belonging to the Panchayat shall be numbered serially immediately on receipt by the Secretary and a register in relation thereto shall be maintained in the office of the Panchayat by its Secretary himself or through officer/officials under him, showing the serial number of each book, the name of the Takniki Sahayak or Junior Engineer, as the case may be, to whom issued, indicating therein the date of issue and the date of its return, so that its eventual return to the Panchayat for record may be watched. Before bringing any measurement book into use, the first page shall bear dated signatures and stamp of the Secretary; and

(vi)    the measurement books used as standard books shall be numbered in an alphabetical order, so that the numbers may be readily distinguishable from those assigned to the ordinary measurement books wherein detailed measurements are recorded, whenever work is actually done.

Rule - 102. Muster roll.

(1)     In the case of work of Panchayat, to be executed departmentally by daily labour, the Secretary himself or any other officer/official under him shall maintain a muster-roll on such form as is used by the Public Works Department, Himachal Pradesh. The muster-rolls shall be printed by the District Panchayat Officer.

(2)     The Panchayat concerned shall obtain the muster-roll forms from the District Panchayat Officer concerned by placing a requisition with him in accordance with its requirement. The Secretary of the Panchayat shall issue the muster-rolls to the technical authority or the authority supervising the work.

(3)     Muster-roll of all works shall be required whether the work is being executed through participatory committees or Registered bodies, as the case may be.

(4)     The secretary of the Panchayat shall maintain muster-rolls issue register.

(5)     In the case of work carried out by daily labourers, the person incharge of the work shall maintain a muster-roll and all payments shall be made after the muster-rolls have been passed by the Secretary of the Panchayat. No acquittance rolls shall be required in respect of payments of such establishment, as acknowledgement of the payee shall be obtained on the muster-roll.

(6)     Every payment on the muster roll shall be made and witnessed by the official available, who shall certify to the payments individually or by groups, at the same time specifying both in figures and words at the foot of the muster roll. The total amount paid on each date and if any time remained un-paid, the details thereof shall be carried forward to arrears registers.

(7)     Unpaid items of muster roll shall be entered into an arrears register under verification by the Secretary at the time of closing of monthly accounts. The payment of these items shall be made by the Secretary on demand the labourers or within six months from the date of voucher concerned.

Rule - 103. Maintenance of accounts of works of Panchayats.

(1)     Accounts in respect of execution of words of Panchayats shall be maintained by its Secretary himself or through officers/officials under him. The original receipts of all material purchased, payments made or any other relevant record pertaining to the execution of works shall be maintained and shall be subject to audit.

(2)     When the works are executed by the Panchayat through participatory committee or registered body, the participatory committee or registered body, as the case may be, shall maintain the detailed accounts including original bills, vouchers, receipts of payments made and other relevant record, if any, and submit the same to the Panchayat through its Secretary at every stage.

(3)     The participatory committee or registered body, as the case may be, shall maintain muster rolls either proforma/forms devised by it or it may obtain the muster-roll forms from the Panchayat concerned.

(4)     When the works are executed by the Panchayat by inviting quotations/tenders, the accounts shall be kept and maintained in the same manner as are kept and maintained by the public Works Department.

(5)     When the works of Panchayats are executed departmentally, the accounts shall be kept and maintained by the Panchayat by its Secretary himself or through officers/officials under him.

Rule - 104. Supervision and technical guidance.

(1)     The Gram Panchayats or Panchayat Samitis or Zila Parishad, as the case may be, shall be responsible for the works to be executed by it. They shall take technical guidance and assistance under overall supervision of the following technical authority and such technical authority shall render the same to the Panchayat concerned under these rules:-

Gram Panchaya ....................................Takniki Sahayak.

Panchayat Samiti .................................... Junior Engineer.

Zila Parishad .................................... Assistant Engineer:

Provided that in cases where the technical authority under this subrule is not available, the Panchayat may take the services of technical persons for specific works, if funds are available with it under Account-A. In case, technical authority is not available for executing works out of Account-B, the Panchayat may hire technical persons for specific work if the scheme under which funds are provided, permits. The person(s) so hired, shall however work under the technical guidance of technical officers/officials of the Panchayat or of the Rural Development and Panchayati Raj Departments.

(2)     The Technical authority shall inspect and supervise the works from time to time and conduct test checks in accordance with these rules or any guidelines/instructions issued by the Director from time to time. Generally the test checks shall be conducted in the following manner:-

(i)       in case of works executed by the Gram Panchayat through the participatory committee or registered body or by inviting quotations/tenders, measurement shall be made by the Takniki Sahayak and the Junior Engineer concerned shall conduct test checks on 10% works measured by Takniki Sahayak costing up to Rs. 50,000/-. Test checks of 5% works costing Rs. 50,000/- and above but less than Rs. 3.00 lacs shall be conducted by the Assistant Engineer and in case the value of work is more than Rs. 3.00 lacs, the test checks shall be 10%. The presence of Junior Engineer shall be mandatory when slabs are to be laid;

(ii)      in case of the works executed by the Gram Panchayat at its own level, construction supervision by the Takniki Sahayak shall be mandatory. Test checks by Junior Engineer and Assistant Engineer shall be conducted in the same manner as given in sub-clause (i);

(iii)     in case of the works executed by the Panchayat Samiti or the Zila Parishad, as the case may be, at its own level through participatory committee or registered body or by inviting quotations/tender, 100% test check at every stage as specified in rule 105, by Junior Engineer and 10% by the Assistant Engineer shall be mandatory; and

(iv)    in case the works are executed departmentally, the same shall be executed in the overall supervision of the Junior Engineer or Assistant Engineer, as the case may be, who is the incharge of the said work and 25% of the works costing more than Rs. 10.00 lacs shall be subject to test check of the Executive Engineer:

Provided that the Executive Engineer may conduct test checks in respect of all the works executed in the manner by the Gram Panchayat or Panchayat Samiti or Zila Parishad, as the case may be, irrespective of the cost of the work at any time.

Rule - 105. Stage for inspection of works.

the following shall be the stages of inspection and test checks of the works:-

(i)       Building works;

(a)      foundation level;

(b)      plinth level;

(c)      roof level; and

(d)      finishing work.

(ii)      Roads, Paths and Street pavements.

(a)      trace cutting;

(b)      full cutting;

(c)      Soling;

(d)      Wearing; and

(e)      Concreting.

(iii)     Irrigation Channels, Drains, Kuhls:

(a)      trace cutting;

(b)      full Digging; and

(c)      lining.

(iv)    Bridges and Culverts:

(a)      foundation of abutment;

(b)      sub structure;

(c)      construction of super structure;

(d)      laying suspension cables; and

(e)      laying of RCC slab.

Rule - 106. Final assessment and completion report.

(1)     Before the release of final payment, the final assessment report shall be made in the following manner:-

(i)       in the case of Gram Panchayat the works costing upto the value of Rs. 50, 000/- by the Takniki Sahayak;

(ii)      in the case of works of Gram Panchayats, costing more than Rs. 50,000/- upto Rs. 3.00 lacs and works of Panchayat Samiti or Zila Parishad, as the case may be, costing upto Rs. 3.00 lacs by the Junior Engineer;

(iii)     in case of works of Panchayats costing more than Rs. 3.00 lacs upto Rs. 10.00 lacs by the Junior Engineer with the counter signatures of the Assistant Engineer; and

(iv)    in case of works costing more than Rs. 10.00 lacs by the Junior Engineer with the consultation of the Executing Engineer.

(2)     On the completion of the work the executing agency shall furnish a completion report to the Panchayat concerned and the final work shall be assessed by the technical authority as specified in sub-rule(1) and the final payment shall be released to the executing agency on the furnishing of final assessment report by the technical authority and on receiving the said assessment report the Panchayat concerned shall issue a completion certificate.

(3)     In the case of works of Panchayats to be executed under AccountA the Panchayat concerned shall keep the completion certificate in its record and in the case of works to be executed under Account-B, a copy of the completion certificate shall be furnished to the agency which has released the funds for the execution of works.

Rule - 107. Release of funds against works.

(1)     The funds shall be released by the Panchayat concerned, for the execution of works through participatory body or registered body, as the case may be, in the following manner:-

(a)      first instalment, 25% of the estimated cost of work at the beginning of the work;

(b)      second instalment, 25% of estimated cost of work after visit/inspection measurement by the technical authority subject to test check and completion of at least 30% work;

(c)      third instalment of 25% of estimated cost of work after completion of at least 50% work;

(d)      Fourth and final instalment of 25% of estimated cost of work after completion of work;

(e)      For works costing less than Rs. 50,000/- the funds may be released in two instalments, 50% of which shall be paid as the first instalment and the remaining 50% on the completion of work as the second instalment.

(2)     For works to be executed by the Panchayat departmentally, the payments for muster-rolls and materials etc. shall be made on actual bills.

(3)     For works to be executed through contract/work order, advance payment is not to be normally made and payments are to be made in accordance with the tender specifications. The Panchayat may, if it deems necessary, release funds for making running payments to the contractors through its Secretary or any other regular employee.

Rule - 108. Role of the Vigilance Committee.

Vigilance Committee shall have the powers to inspect all works being executed by the Gram Panchayat including records and accounts being maintained in respect of these works as per provisions of sub-section (4) of section 7 of the Act.

Rule - 109. Residuary powers.

The matters for which there are no provisions in the rules, the provisions made in Public Works Department Code, Himachal Pradesh shall be followed. In case of any contradiction, the same will be referred to the Director and his decision thereon shall be final.

Rule - 110. Power to remove difficulties.

If any difficulty arises in the interpretation or implementation of these rules, the matter may be referred to the State Government for clarification/guidance, who shall be competent, by order to do anything to remove such difficulty not inconsistent with the provisions of these rules and the Act.

Rule - 111. Repeal and savings.

(1)     The Himachal Pradesh Panchayati Raj Public Works, Manual, 1979 and the Himachal Pradesh Panchayati Raj (General) Financial, Budget, Accounts, Audit, Taxation, Service and Allowances Rules, 1975 are hereby repealed:

Provided that the rules, 34, 35, 125 to 136 and 151 to 185 of the Himachal Pradesh Panchayati Raj (General) Financial. Budget, Accounts, Audit, Taxation, Service and Allowances Rules, 1975 including Forms specified, if any, therein shall continue to be in force till they are substituted by corresponding rules under the Act.

(2)     Notwithstanding such repeal, anything done or any action taken under the provisions of the rules, so repealed, shall be deemed to have been validly done or taken under the corresponding provisions of these rules.