APPENDIX VII

(See note below paragraph 53)

Rules regarding payment of contingent bills by cheque

1. Drawals by cheque will be made only in respect of expenditure coming in budget under "Contingencies" while drawals of pay of officer, pay of establishment and allowances and honoraria will continue to be made as usual through bill forms prescribed in Financial Hand book Volume V, Part I.

NOTE—Drawals of Service Postage Stamps will be made in accordance with Para 166 (II).

2. The Officer specifically authorised by Government to issue cheques (hereinafter called the "Drawing Officer") will make necessary drawal by cheques for purposes mentioned in Para 1. For this purpose, the Drawing Officer will be placed in account with the branch of State Bank of India conducting Government business as mentioned by Government.

NOTE—Money drawn on cheques will not be mixed up with the money drawn on bills vide paragraph 136 of Financial Handbook, Volume VI.

3. Cheques will be drawn on the State Bank for making payments to suppliers and for recoupment of Imprest and such expenditure which has to be disbursed in cash. Petty sums under Rupees ten will not be drawn by cheques and will be paid in cash.

4. The cheque drawals of the department will be accounted by the Treasury under the detailed head under "870—Cheques and Bills— Departmental cheques."

5. The Drawing Officer will carefully follow the rules as to cheques given in Section V of Chapter III of this Handbook:

(a) The Bills will be thoroughlysc rutinised and pre-checked by the Accounts Officer before payment and drawal of the cheques.

(b) This will in no way diminish the responsibility of the drawing and disbursing officers in respect of correct drawal and payment of the bills enjoined under rules.

6. The drawing officer will maintain a "Register of Cheques Drawn," in lieu of the register of contingent bills drawn, for recording particulars of the voucher and the cheque and will sign against each entry in the register. The form prescribed for the register is attached (Form I).

7. To keep independent control on the total amount drawn by cheques in a month the drawing officer will note on the reverse of the counterfoil of each next cheque signed by him the total of drawals including the amount of previous cheque, the amount of the next cheque and will carry forward the final total on the reverse of the counterfoil of the following cheque form in the book. Cheques issued to parties will be crossed or marked "A/C Payee only."

8. If the currency of a cheque should expire owing to its not being presented to the State Bank for payment within three months after the month of issue (vide amended paragraph-62) it may be received back by the drawer who should then destroy it and draw a new Cheque in lieu of it. The fact of the destruction and the number and date of the new Cheque should be recorded on the counterfoil of the old Cheque, and the number and date of the old Cheque that is destroyed should be entered on the counterfoil of the new one. The fact of the new Cheque having been issued should be entered on the date of issue in red ink in the "Register of- Cheques Drawn" but not in column for amount, a not being made at the same time against the original entry in the register.

NOTE:–For procedure relating to lost Cheques see Para 65, of the Hand Book.

(C. S. No-105 dated 10-12-97)

[File No. 15(3)/90 Vitta (Lekha) Anubhag-1]

9. When it is necessary to cancel a cheque, the cancellation should be recorded and initialled by the drawing officer on the counterfoil, and the cheque if in the drawer’s possession, should be destroyed. If the cheque is not in his possession, he should promptly request the State Bank to stop payment of the cheque and on ascertaining that payment has been stopped he should write back the entry in his "Register of Cheques Drawn" by exhibiting the amount of the cheque as a minus figure in the amount column. A counter-reference should be given in the register, against the original to the second entry of the cheque. A cheque remaining unpaid from any cause for twelve months from the date of its issue should be cancelled and its amount written back in a similar manner.

10. The amount of each cheque drawn, whether it is despatched directly to a party or the same is encashed or bank draft is obtained against the same, will be entered in the drawing officer’s Cash Book on the receipt side, making corresponding entry of the disposal of the cash. Bank Draft or cheque as the case may be, on the payment side. The fact of a cancellation of a cheque will be noted in red ink against the original entries in the Cash Book.

The Cash Book should be maintained in Form VII.

(Correction Slip no. 18, dated November 21, 1981)

[Vitta (Lekha) Anubhag-1, File no. 15(6)-1976]

11. A register of cheques hould be maintained by the Drawing Officer. The prescribed form is attached (Form II). (The same form may be used for maintaining account of Receipt Books. Separate pages for receipt books and cheque books may be allotted in the same register).

12. The Treasury Officer will furnish the Drawing Officer quarterly with a statement of cheque books supplied. The drawing officer, on receipt of the statement will compare it with the register of Cheque Books.

13. The Treasury Officer will send to the Drawing Officer a copy of payment schedule duly written up twice a month one about the 15th of the month for the transactions from the 1st to 10th of that month and again about the 4th of the next month for the transactions from 11th to the last day of the month. The drawing officer should keep payment schedule in a guard file for further reference. The Treasury Officer will also send to the drawing officer the certificate of issue of cheques in Form no. 77-A of the Financial Handbook, Volume V, Part II (Attached Form IV) every month with the Copies of payment schedule, after completing and signing the certificate prescribed at the foot of the certificate of issues.

(Correction Slip No. 83 date 19-3-88)

(Vitta (Lekha) Anubhag-1, File no. 4(2)/77 T.C.)

14. The Payment schedule and the certificate of issues when received from the Treasury will be examined by the drawing officer to cheek the identity and the amounts of the cheque entered as cashed and a certificate of agreement will be recorded in the Payment schedule over the signature of the drawing officer without, however, recording any details of the uncashed cheques or other differences therein.

15. When the drawing officer has examined the Payment schedule and recorded his certificate of agreement thereon, a separate statement will be prepared for reconciling the account of cheques issued as per "Register of Cheques Drawn" with that of cheques cashed as per the Payment schedule. This statement will also give particulars of (a) total cheques issued to the end of the month but not cashed and (b) outstanding cheques of earlier months cashed in the month. The statement will be signed by the drawing officer and a duly signed copy will be sent to the Accountant General along with the ‘Monthly Account of drawals by cheque’ to be prepared as per Para 17 below. The prescribed form of reconciliation statement is attached (Form V).

16. The passed vouchers of the month against which drawals made by cheque and corresponding payees’ receipts will be kept securely in a file for the time being. Early each month the vouchers of the previous month will be forwarded to the Accountant General attached to the relevant Detailed Countersigned Contingent Bills in Form 17 of the Financial Handbook, Volume V, Part I as required to accompany the "Monthly Account" in accordance with Para 17 below. As eparate Contingent Bill will be prepared detailing the particulars of all sub-vouchers relating to each primary unit or detailed head of allotment subordinate to the major-head and will be signed by the drawing officer.

17. After the close of the month a consolidated monthly account will be sent to the Accountant-General U.P. consisting of the following:

(i) monthly account covering memo, giving in Part I details of all chequs drawn during the month and in Part II the total amount of contingent expenditure drawn by cheques, classified under relevant detailed heads of budget allotment, with cross reference of respective Contingent Bills accompanying and duly signed by the drawing officer. The form prescribed is attached (Form VI).

(ii) copy of statement of reconciliation between "Register of Cheques Drawn" and the Payment schedule, duly signed by the drawing officer and accompanied with a copy of Treasury Officer’s certificate of total issues.

(Correction Slip No. 83 date 19-3-88)

(Vitta (Lekha) Anubhag-1, File no. 4(2)/77 T.C.)

(iii) separate detailed countersigned Contingent Bills for each subordinate classification of budget allotment giving voucher-wise details of expenditure, signed by the drawing officer cross referenced with the Part II details of the covering memo and accompanied with all pertaining vouchers and payees stamped receipts.

N.B.—The above monthly account will be sent through special messenger or despatched under registered cover so as to reach the Accountant General’s Office not later than 10th of each following month.

18. The Accountant General, U.P. on receipt of the monthly accounts of the drawing officer and the Treasury will adjust the expenditure under the major and detailed heads noted on D.C. Contingent Bills and will clear the head "Departmental Cheques" under which the cheques were originally drawn.

FORM I

.........................................(Drawing Officer)

....................................(Name of the Office)

Date of signing of cheque	Particulars of voucher	No. of voucher	Number of cheque with number of cheque book	Name of payee	Amount	Detailed head under the major head of budget to which expenditure is chargeable	Signature of drawing officer	Cash book Folio	Initial of cashier
1	2	3	4	5	6	7	8	9	10
					Rs.
			Total

(Head of account under which contingent expenditure is debitable)

PART II

Date and reference of despatch of monthly account to Accountant General’s Office.

Detailed Classification of Contingencies.

(Detailed heads of classification as per budget may be given).

Amount

Ref. of D.C. Contingent Bill Attached

No. of Vouchers

No. of Payees Receipts

NOTE—The Position shown in Part II will be prepared in manuscript at the monthly closing of the register.

Drawing Officer

(With full designation).

FORM II

Stock-cum-Issues Register for Receipt Books and Cheque Books

Date of receipt	Book nos. (Book-wise)	Sl. no. opening and closing (Book-wise)	Intitials of drawing officer	Date of issue	To whom issued	Signature in token of receipt of book	Remarks of used book no. taken with dated initial of drawing officer
1	2	3	4	5	6	7	8

NOTE—If ten books are received together, all the ten will be entered serially in Column 3 separately in separate lines.

FORM III

(See Chapter XXIX, Para 648)

Pass-Book or list of Cheques cashed against the account of ....................................... (Drawing Officer) ....................................................................................... (Officer).

Month and date of payment	Particulars of cheques cashed	Amount of cheque	*Initials of T.O.	Month and Date of payment	Particulars of cheques cashed	Amount of cheque	Initial of T.O.
Month and date of payment	No. Date	Amount of cheque	*Initials of T.O.	Month and Date of payment	No. Date	Amount of cheque	Initial of T.O.
1	2	3	4	5	6	7	8
		Rs.				Rs.

*Each entry should be initialled after comparison with register of cheques paid (Form no. 74).

FORM IV (i) and (ii)

(i)

FORM 77-A

(See Chapter XXIX, Para 650, Financial Handbook, Volume V, Part II)

Treasury Officer’s Certificate of Issues

I hereby certify that the total issues made from this Treasury on cheques drawn against accounts of Sri ........................(Drawing Officer)...................................(Office), during...............19 .

Certified further that the amount for which the certificate of issues is furnished agrees with the amount debited in the Treasury accounts (Form 74) against II—cheques except a small difference of Rs. .................................... which is explained below :

(a) Rs. ..................... differences shown in the previous month since adjusted in the Treasury account in this month.

(b) Rs. ..................... under reconciliation and will be adjusted in next months accounts.

Station.....................................

Date.............................................

Treasury Officer.

(ii)

Drawing Officer’s Certificate of Agreement on Pass Book

Certified that Pass Book entries of the month of............ 19......... aggregating to Rs. ............ have been agreed with the cheques subject to differences as per the reconciliation statement.

________________________

Drawing Officer.

Date ............................... (Full designation).

FORM V

Statement of reconciliation of pass book with the register of cheque drawn

1. Difference as per line 5 of previous months reconciliation statement.		_____________
2. Total amount of cheques issued during the mouth as per Register of cheques drawn :
(a) Amount of fresh cheques issued during the month (excluding cheques issued in lieu of old cheques).		_____________
(b) Deduct amount written back on account of old cheques cancelled but not renewed.		_____________
(c) Net total		_____________
(a)—(b)		_____________
3. Total (1)+(2) (c)		_____________
4. Deduct total amount of cheques encashed during the month as per T.O.’s certificate attached.		_____________
5. Difference showing the total amount of cheques issued but not cashed (as per details given below).		_____________
(a) Details of total cheques issued but not cashed to the end of the month.		_____________
Particulars of uncashed cheques
No.	Date	Amount
___________________________________________________		_____________
___________________________________________________		_____________
Total (a)		_____________
(b) Details of total outstanding cheques of earlier months encashed during the month.
No.	Date	Amount
__________________________________________________		_____________
__________________________________________________		_____________
Total (b)		_____________

FORM VI

PART I

Coverning Memo of Monthly Account to Accountant General for the month of.................... 19............... of the............ Drawing Officer

(Office)

Number of cheque with cheque book number	Name of payee	Amount	Detailed head under the major head of budget to which expenditure is chargeable	Remarks
1	2	3	4	5
		Rs.
	Total

PART II

(Head of account under which contingent expenditure of the department is debitable ).

Detailed classification of contingencies.

Amount

Ref. of D.C. Contingent Bill attached.

No. of vouchers.

No. of payee Receipts.

Dated

Forwarded to the Accountant-General, U.P. (...............Section) Allahabad.

__________________

Drawing Officer.

(with full designation)

FORM VII

CASH BOOKS

(See RULE 10)

Cash Book of..... for the month of..... 19.

RECEIPT SIDE					PAYMENT SIDE						Classification of charges
Date of Receipt	Number of Voucher or Receipt	From whom received etc.	Amount (Cash)	Classification of receipts	Date of payment	Number of voucher	To whom paid etc.	Payments
								Cash	Bank or Treasury	Amount
									Number of cheque with no. of cheque book
1	2	3	4	5	6	7	8	9	10	11	12
			Rs. p.					Rs p		Rs p

(Correction Slip no. 19, dated 21-11-1981)

[Vitta (Lekha) Vibhag I, File no. 15 (6) - 76 J].