SECTION XIV—DEFALCATIONS AND LOSSES

82. (1) With the exception noted below any defalcation or loss of Government money, departmental revenue or receipts, stamps, opium, stores, or other property, discovered in a Treasury or other office or department, which is under the audit of the Accountant General, should be immediately reported to the Accountant General and to the Government through the Head of the Department or the Commissioner of the division, even when such loss has been made good by the person responsible for it. It will usually be sufficient if the officer reporting the defalcation or loss to higher authority sends to the Accountant General either a copy of his report or such relevant extracts from it as are sufficient to explain the exact nature of the defalcation or loss and the circumstances which made it possible. When the matter has been fully investigated a further and complete report should be submitted of the nature and extent of the loss showing the errors or neglect of rules by which such loss was rendered possible, and the prospects of effecting a recovery. The submission of such report does not debar the local authorities from taking any further action which may be deemed necessary.

(i) Exception—Petty cases, that is, cases involving losses not exceeding Rs. 1,000 each need not be reported to the Accountant General unless there are in any case, important features which merit detailed investigation and consideration.

(ii) Exception— Petty cases of accidental loss involving sums of Rs. 1,000 or below, which do not disclose a defect of system the amendment of which requires the orders of Government or serious negligence on the part of some officer or officers which might call for disciplinary action requiring the orders of Government need not be reported to Government. For purposes of administrative control the Heads of Departments should, however, submit to the administrative department concerned an annual statement showing the particulars of the items of such losses which have not been reported individually to Government.

(iii) Responsibility for losses—Every Officer shall realise fully and clearly that he will be held personally responsible for any loss sustained by Government through fraud or negligence on his part and that he will also be held personally responsible for any loss arising from fraud or negligence on the part of any other officer to the extent to which it may be shown that he contributed to the loss by his own action or negligence.

(C. S. No. 89 Date 6-4-1989)

[Vitta (Lekha) Anubhag-1 File no. 15(2)-84]

Note—The enforcement of the responsibility for the losses sustained by the Government through fraud or negligence of individuals shall be regulated by the general principles laid down in Appendix XIX-B of this volume and instructions issued by the State Government in this regard from time to time.

(C. S. No. 89 Date 6-4-1989)

[Vitta (Lekha) Anubhag-1 File no. 15(2)-84]

(2) General instructions regarding the entrusting to officials the duty of looking after Government property at the time of opening and closing of offices are given in Appendix XIX-C.

(2) Any serious loss of immovable property such as buildings, communications or other works caused by fire, flood, cyclone, earthquake or any other natural cause occurring in a Treasury or other office or department shall be reported at once by the subordinate authority concerned to Government through the Head of the Department or the Commissioner of the Division.

NOTES (1)—(a) All losses of immovable property such as buildings etc. caused by fire, flood or any other natural cause exceeding Rs. 5,000 in value should be treated as serious.

(b) While losses not exceeding Rs. 5,000 in value should be reported to the Head of the Department or Commissioner (and to Police etc. where necessary), they need not be reported to Government or the Accountant General whether the cost of restroration is chargeable to maintenance estimates or some other heads of account.

(c) The term ‘value’ for this purpose should be interpreted as meaning the Book Value;

(2) After full enquiry as to the cause and the extent of the loss has been made, the detailed report should be sent by the subordinate authority concerned to Government through the Head of the Department or the Commissioner of the Division. A copy of the report on an abstract thereof should simultaneously be forwarded to the Accountant General.

(3) Losses or deficiencies concerning buildings (lands) stores and equipment should be written off any value or commercial account that may be maintained.

(3)"An Amount lost through misappropriation, defalcation, embezzlement etc. may be redrawn if required for disbursement of claims against Government, pending further action regarding investigation etc., and recovery, if any, of the loss, with the approval of authority (Administrative Department of Government, Head of Department and others who are delegated Powers to write off losses) competent to write off the loss in question in terms of the Provisions of financial Powers contained in the Financial Hand Book, Volume I or Government orders on the subject Approval of Finance Department will be necessary in cases not covered by the delegated financial powers referred to above. Redrawal should be made on simple receipt containing the following information".

(Correction Slip No. 45, dated 3-3-1984)

[Vitta (Lekha) Anubhag-1, File no. 3/1/(3)-66]

No....................................

Head of Account—K—Deposits and Advances—850— Civil Advances—Other Advances—Advances for redrawal of the amounts lost through misappropriations, defalcations, embezzlement and the like of salaries etc.

Received the sum of Rs. ...................... (Rupees................................................. only) being the amount sanctioned for redrawal by............................................... vide letter no. .................................... Dated...............

(Copy enclosed)

Place................................. Signature................................

Date................................. Designation.............................

Stamp of Office........................

For use in Treasury

Pay Rupees..............................

Examined.

Treasury Accountant. Treasury Officer.

For use in Accountant General’s Office

Admitted Rs. .................................

Objected to Rs. .............................

Reason for objection.....................

Auditor Superintendent. Gazetted Officer.

The drawal of the advance so sanctioned will not require any special authority from the Accountant General to the Treasury Officer. In the accounts the amount so redrawn will be classified under the head "K-Deposits and Advances 850-Civil Advances-Other Advances-Advances for redrawal of the amounts lost through misappropriations, defalcation, embezzlement and the like of salaries etc." The amount, if any, recovered subsequently shall be credited to the above head and the balance, if any under the head, if found irrecoverable, should be written off with the sanction of the competent authority and adjusted as loss under the head of account to which the expenditure of the Department concerned is ordinarily debitable.

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