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THE ORISSA AIDED EDUCATIONAL INSTITUTIONS' ACCOUNTING PROCEDURE RULES, 1985

THE ORISSA AIDED EDUCATIONAL INSTITUTIONS' ACCOUNTING PROCEDURE RULES, 1985

THE ORISSA AIDED EDUCATIONAL INSTITUTIONS' ACCOUNTING PROCEDURE RULES, 1985

[1]THE ORISSA AIDED EDUCATIONAL INSTITUTIONS' ACCOUNTING PROCEDURE RULES, 1985

Rule - 1. Short title and commencement.

(1)     These rules may be called the Orissa Aided Educational Institutions' Accounting Procedure Rules, 1985.

(2)     They shall come into force[2] on such date as the Government may, by order, appoint in that behalf and the Government may appoint different dates in respect of different categories of aided educational institutions.

(3)     These rules shall not apply to Primary Schools, schools established and maintained by Municipalities and Notified Area Councils and educational institutions of their choice established and administered by minorities having the right to establish and administer educational institutions under Clause (1) of Art. 30 of the Constitution of India.

Rule - 2. Definitions.

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

(a)      "Act" means the Orissa Education Act, 1969 (Orissa Act 15 of 1969);

(b)      "Auditor" means an Auditor appointed under the Orissa Local Fund Audit Act, 1948 (Orissa Act 5 of 1948);

(c)      "Bank" means any office of branch of the Banking Department of the Reserve Bank of India, any branch of the State Bank of India acting as the agent of the Reserve Bank of India Act, 1934 (2 of 1934) and any branch of a subsidiary bank as defined in Section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959) which is authorised to transact Government business as agent of the State Bank of India or any other agency appointed by the Reserve Bank of India;

(d)      "Bank Treasury" means a treasury, the cash business of which is conducted by the Bank;

(e)      "District Inspector" means the District Inspector of Schools in charge of an educational district;

(f)       "Examiner of Local Accounts" means the Examiner of Local Accounts as defined in the Orissa Local Fund Audit Act, 1948;

(g)      "Financial Year" means the year commencing on the first day of April;

(h)     "Government" means the State Government of Orissa;

(i)       "Inspector" means the inspector of Schools in charge of an educational circle;

(j)       "Institution" means an educational institution as defined in Clause (e) of Section 3 of the Act;

(k)      "Local Fund" means the local fund as defined in the Orissa Local Fund Audit Act, 1948;

(l)       "Non-Bank Treasury" means treasury other than a Bank Treasury;

(m)    "Non-recurring expenditure" means expenditure sanctioned as lump-sum charge, whether the money be paid as lump sum or by instalments;

(n)     "Recurring expenditure" means all expenditure which is not non-recurring;

(o)      "Treasury" means any treasury of the State and includes a Special Treasury and a Sub-Treasury;

(p)      "Treasury Rules" means the Treasury Rules of the Government embodied in the Orissa Treasury Code;

(2)     All other words and expressions used but not defined in these rules shall have the same meaning as are respectively assigned to them in the Act.

Rule - 3. Maintenance of Accounts.

The following registers of accounts shall be maintained by every aided educational institutions, namely:

(i)       Bill Register;

(ii)      Cash Books for transactions other than students funds in the form prescribed as O.T.C. 4 in the Orissa Treasury Code, Volume II, wherein the balance in Bank and at hand shall be separately shown;

(iii)     Cash Book for Students Fund to be maintained separately for each item of collection such as library, game, examination, magazine, etc. in the form prescribed as O.T.C. 4 in the Orissa Treasury Code, Volume II, such Cash Book shall reflect the deposits in the withdrawals from the Bank;

(iv)    Book of Drawal in the form prescribed as O.T.C. 86 in the Orissa Treasury Code, Volume II;

(v)      Register of Cash Orders, Bank Drafts and Cheques received and adjusted in the form prescribed as O.T.C. 81 in the Orissa Treasury Code, Volume II;

(vi)    Acquittance Roll for disbursement of salaries to staff;

(vii)   Resister for disbursement of scholarships;

(viii)  Contingency Register (Contingencies, building repairs and other miscellaneous expenditures);

(ix)    Register of grants-in-aid in the form prescribed as O.G.F.R. 33 in the Orissa General Financial Rules, Volume II;

(x)      Advance Register;

(xi)    Permanent Advance Register;

(xii)   Admission Register;

(xiii)  Service Register of employees;

(xiv)  Ledger account of Students Funds;

(xv)   Daily Collection Register for Colleges;

(xvi)  Demand and Collection Register for Colleges/High Schools;

(xvii) Register showing disbursement of funds to poor students;

(xviii)   Hostel fees collection Register;.

(xix)  Caution money Register;

(xx)   Stock Register (Separate pages to be opened for different items)

(a)      Stationery Articles;

(b)      Library Stock

(c)      Dead Stock

(d)      Games Articles

(e)      Science apparatus chemicals

(f)       Prize articles

(g)      Examination materials

(h)     Postage stamp account

(i)       Fee receipt books

(j)       Library catalogue

Rule - 4. Permanent advance.

The Principal of a College, the Headmaster or Headmistress of a High School and the Headmaster or Headmistress of Middle School may be allowed a permanent advance of one thousand rupees, three hundred rupees and one hundred rupees, respectively, for meeting any emergent contingent expenditure, which shall be recouped as often as necessary in accordance with the provisions of Rule 82 of the Orissa General Financial Rules, Volume 1. Individual transactions relating to permanent advance shall be recorded in permanent advance register and shall not pass through the Cash Book and subsidiary registers. The transactions of payment and recoupment shall be watched through the office contingent register as well as through the permanent advance register. After payment is made for the purpose for Which the money was advanced, the expenditure so made shall be recouped by way-of deducting the expenditure from the contingent allotment.

82. Permanent advances may be granted to offices, who may have to make payment before they can place themselves in funds by drawing on the treasury. They are subject to the following rules:

(i)       The amount of the advance will be fixed by Government except in cases falling under Clause (ii).

(ii)      Heads of departments may, unless Government otherwise directs sanction the grant of permanent advances for offices subordinate to them up to the amount advised as appropriate by the Accountant General subject to a limit of Rs. 500/- for each office. Permanent advances exceeding Rs. 500/- for any office subordinate to a Head of Department and all permanent advances for offices of Heads of Departments must require the sanction of the State Government.

(iii)     Applications for the grant or revision of a permanent advance must be submitted to the sanctioning authority through the Accountant-General who will advise as to the appropriate amount of the advance. In case falling under Clause (ii) above if there is any difference of opinion between the Accountant General and the sanctioning authority on this point the matter should be referred for the orders of Government.

NOTE-The applications for permanent advance should be accompanied by a statement showing month by month for the preceding twelve months the amounts of contingent bills cashed with classified details of items of expenditure.

(iv)    As these advances involve the permanent retention of money outside the treasury, they must not be larger than is absolutely essential.

(v)      These advances should not be multiplied unnecessarily. An officer's advance should meet the needs of every branch of his office. If he has subordinates who require petty sums, he should spare a small portion of his own advance for their use rather than apply for separate advances for them, taking acknowledgements from them in the same way as he himself furnished acknowledgments to the Accountant-General and retaining them in his office.

(vi)    The advance is intended to provide, on the responsibility of the officer entrusted with it, for emergent petty advances of all kinds, though it is seldom that they will be needed for other than contingent charges; thus if a fourth grade Government servant is required to travel by rail, his fare must sometimes necessary be advanced from this amount.

(vii)   The holder of a permanent advance is responsible for the safe custody of the money placed in his hands and he must at all times be ready to account for the total amount of the money.

(viii)  In the case of transfer of charges and yearly on the 15th April, each officer holding a permanent advance must send an acknowledgement to the Accountant-General of the amount due from and accountable for by himself as on the 31st March preceding.

NOTE-Advances made out of the permanent advance to the fourth grade and other non-gazetted Government servants for journeys on tour, need not appear in the Government accounts. Travelling allowances bills may be made out for the full claims admissible as soon as the journeys are completed and advances made out of the permanent advance may be recovered out of the amounts drawn from the treasury on such travelling allowance bills.

Rule - 5. Cash transactions.

The Head of every aided institution shall deposit daily in bank as approved by the Director in case of college by the Inspector in case of High Schools, and by the District Inspector in case of Middle Schools, all sums received, and shall draw cheques on such Bank as and when necessary for payment. If any money is received on a day when the Bank is closed it shall be deposited on the next day on which Bank is open:

Provided, however, that, if there is no suitable Bank in the town or village near to the place where the aided institution is located, the Head of the institution may deposit the sums within three days of its receipt.

Rule - 6. Provision as to receipt of money.

The Secretary of the institution shall issue receipts for all sums received on behalf of the institution except fees, the receipts for which shall be issued by the Head Clerk or by the Clerk-in-charge being specially authorised, Carbon copies of all receipts issued to students for fees, etc. shall be kept for record. These receipts, shall be machine numbered and shall be kept in bound books of suitable size, of which a stock account shall be maintained.

Rule - 7. Application of Government Rules etc.

In all matters of which no express provisions have been made in these rules, regulations, codes, forms, registers, and returns and the like prescribed by the Government for their offices and which are in force for the time being, shall in so far as they are not inconsistent with these rules and the Act, apply to the aided educational institutions in the matter of accounting procedure.

Rule - 8. Language to be used.

All accounts and registers shall be maintained in English or Oriya. All account books and registers shall be substantially bound and paged with a certificate on the first page before being brought into use, and no account shall be maintained in loose sheets or in loosely bound volumes.

Rule - 9. Rules to be observed by the Head of the Institution.

(1)     The Head of the Institution shall maintain a Cash Book in the form prescribed as O.T.C. 4 in the Orissa Treasury Code, Volume II for recording in separate columns, all money received by him or her on behalf of the Institution other than subsidiary funds and their subsequent remittance to the Treasury or Bank as well as money withdrawn from the Bank by cheques and their disbursement.

(2)     All the monetary transactions shall be entered in such Cash Book as soon as they occur and attested by the Head of the Institution in token of check.

(3)     The Cash Book shall be closed regularly and completely checked. The Head of the Institution shall verify the totalling of the Cash Book or have this done by some responsible subordinate employee other than the writer of the Cash Book and initial it as correct.

(4)     At the end of each month, the Head of the Institution shall verify the cash balance in the Cash Book and record a signed and dated certificate to that effect.

Rule - 10. Responsibility for funds.

The Head of every institution shall be responsible for all funds of the institution which pass through his or her hands. In a college, where there is a bursar, he shall relieve the principal of the work of checking receipts and expenditure, but the Principal shall make further check from time to time as the responsibility vests in him.

Rule - 11. Checking of accounts.

All accounts in aided institution shall be audited by the Auditor who shall certify to the receipts and expenditure being correctly stated and supported by proper vouchers and shall satisfy himself that all sums which should have been paid into the Treasury have been so paid. Inspecting Officers, during their visit, shall take care to note any case of misrepresentation regarding fees or any case in which any of the conditions of the grant-in-aid have been violated and shall carefully check the utilisation of such aid on the purchase of furniture, apparatus and book etc.

Rule - 12. Disbursement of salaries.

All sums drawn on establishment bills for the payment of salaries, shall, as far as practicable, be disbursed on the same day and the payees' receipts taken on the acquittance roll. If any payment cannot be made within a month the amount may be refunded by short drawal in the next bill and the same may be drawn subsequently, if necessary.

Rule - 13. Restriction as to corrections in accounts.

All corrections and alterations in accounts shall be neatly made in red ink and attested with initial of the Head of the Institution. Similarly all alterations and corrections in a voucher shall be duly authenticated by the payee. Erasures shall, on no account, be permitted in registers, statements, vouchers or accounts of any description.

Rule - 14. Restriction on change of head of accounts.

No change shall be made in the prescribed list of major, sub or detailed budget account heads without the approval of the Government and the same head shall be used uniformly in all accounts maintained by the Institution.

Rule - 15. Credit of money to the institution fund and the manner of its remittance.

(1)     All sums received on account of the Institution funds shall be paid to the Treasury or, as the case may be, the Bank.

(2)     A Pass Book shall be maintained in the Treasury or as the case may be, the Bank to record the remittance and withdrawals to and from the Treasury, or as the case may be, the Bank. The entries made shall be initialled by the Treasury Officer or the Officer of the Bank, as the case may be, and the book returned at once to the institution.

NOTE-No entry or mark shall, under any circumstances, be made in-the pass Book by anyone connected with or working in the institution.

Rule - 16. Receipts.

All receipts from whatever sources or for whatever purpose collected shall be entered in the Account Book of the Institution which must be kept open to examination by officer entitled to visit the Institution.

Rule - 17. Balance of the credit of the Institutions.

(1)     Any balance at the credit of the Institution must be utilised for the purpose of the Institution only and no portion of it shall be spent for any other purpose without the previous sanction of the Director, Inspector or District Inspector, as the case may be.

(2)     The students' funds in the nature of deposits collected in course of the year shall be spent for the purpose for which the same are collected.

Rule - 18. Surplus funds.

The surplus funds of the Institution shall be credited to the fund of the institution in the Bank in which the Institution is placed with an account at the end of each quarter and the account must be made in the joint names of the Head of the Institution and the Secretary or the management of that Institution.

Rule - 19. Manner of payment of Grants-in-aid.

The grants-in-aid shall be payable only on submission of vouchers duly receipted. It shall be drawn on a bill in Form-I.

Rule - 20. Annual financial statement.

The management of every aided institution shall submit to the Director, not later than the 1st day of May each year a financial statement in Form-II.

Rule - 21. Security Bond.

Every Cashier, Store Keeper and other employees of an aided college and of an aided school who is entrusted with the custody of cash or stores shall be-required to furnish a security deposit of five hundred rupees and two hundred rupees, respectively and execute a security bond in Form-III setting forth the conditions under which the institution shall hold the security and may ultimately refund or appropriate it. Money shall be deposited in the Post-Office Savings Bank Account which shall be duly pledged in favour of the Head of the Institution. The pass book shall be sent to the Post Office as soon as possible after the 15th June of each year, so that the necessary entries of interest may be made therein. The Pass Book shall be kept in the safe custody of the Head of the Institution. Security deposit taken from an employee of the Institution shall be retained for six months after the date when he vacates the post.

Rule - 22. Repeal and savings.

All rules corresponding to these rules and in force immediately before the commencement of these rules are hereby repealed:

Provided that any order made, action taken or things done under the rules so repealed, shall be deemed to have been made, taken or done under these rules.

Rule - 23. Interpretation.

If any question arises relating to the interpretation of these rules it shall be referred to the Government for decision.



[1] Made in exercise of the powers conferred by Section 27, read with Sub-section (1) of Section 12 of the Orissa Education Act, 1969 vide S.R.O. No. 151/85 published in O.G.E. No. 558 dated 9.4.1985.

[2] Came into force w.e.f. 1.4.1986 in respect of all categories of aided educational institutions vide order No. 9509 EYS dated 1.3.1986 published in O.G.E. No. 586 dated 19-5.1986.