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One Liner Information Def Accounts Code: 30) AO, DAD, MOD (Civil) New Delhi,
01 (Ch-01 to 04) 5. The transfer of funds from one primary unit
1. “The assignment, to meet specified of appropriation to another such unit is
expenditure, of funds included in a primary defined as- Re-appropriation
unit of appropriation.” - Appropriation 6. Full Forms:
2. The Secretary of the Ministry/Department is a) EFT – Electronic Fund Transfer
ex-officio “Chief Accounting Authority” of b) NEFT - National Electronic Fund Transfer
the Ministry/Department after separation of c) RTGS - Real Time Gross Settlement
Accounts and Audit (Departmentalisation of d) SBI-CMP - State Bank of India-Cash
Accounts). In case of MoD, Def Sec is the Management Product
Chief Accounting Authority. 7. Articles related to the Funds:
3. ‘Controller General of Accounts’ is an a) Consolidated Fund of India – Article 266
authority posted in the Ministry of Finance (1) of Indian Constitution
(Department of Expenditure) b) Public Account of India – Article 266 (2)
4. Names of “Defence Accounting Circle” in of Indian Constitution
DAD: c) Contingency Fund of India – Article 267
1) CGDA Delhi Cantt, (1) of Indian Constitution
2) PCDA (NC) Jammu, 8. A treasury the cash business of which is
3) PCDA (SC) Pune, conducted by the Bank is called- Bank
4) PCDA (WC) Chandigarh, Treasury
5) PCDA (SWC) Jaipur, Note: All others are Non-Bank Treasuries.
6) PCDA (CC) Lucknow, 9. Ministry of Defence (Fin) is responsible to
7) PCDA Bangaluru, ensure that suitable accounts are maintained
8) PCDA (Pensions) Prayagraj, by the Defence Services.
9) PCDA (Officers) Pune, 10. In case of forms of initial or other accounts
10) Principle Controller of Accounts ( Fys ) are deviated from in their Accounting Circle,
Kolkata, PCsDA/CsDA seeks the intervention of MoD
11) PCDA (AF) Dehradun, (Fin) through CGDA.
12) PCDA (AF) New Delhi, 11. The forms in which accounts are kept in the
13) PCDA (Navy) Mumbai, offices of the DAD are prescribed by - CGDA
14) PCDA New Delhi, with the approval of Def Secretary and
15) PCDA (R&D) New Delhi, FADS
16) PCDA (BR) Delhi Cantt, 12. If any change affects the form of the Finance
17) CDA Patna, and Revenue Accounts, it will not be made
18) CDA Guwahati, without the previous sanction of the CGA
19) CDA Chennai, and CAG.
20) CDA Jabalpur, 13. In case of need, an Accounts Office of the
21) CDA Secunderabad, DAD may make slight amendments in the
22) CDA (Army) Meerut, forms for maintaining accounts by referring
23) CDA (Funds) Meerut, to the CGDA.
24) CDA (CSD) Mumbai, 14. All returns, accounts and statements
25) CDA (PD) Meerut, required by the Controller General of
26) CDA (R&D) Bangalore, Accounts and Comptroller and Auditor
27) CDA (R&D) Hyderabad, General should be prepared in the forms
28) CDA (IDS) New Delhi, prescribed by them.
29) ZO (DPD) Chennai,
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15. The Departmentalisation of Accounts was b) He arranges all payments of Defence
made effective in Ministry of Defence on 1st Services through PCsDA/CsDA and
October, 1976. Drawing and Disbursing Officers of the
16. On behalf of Defence Secretary as the Chief Defence Services.
Accounting Authority of MoD, CGDA is c) He prepares annual Statement of
responsible to arrange payments and Central Transactions (SCT) of Defence
internal audit of Defence Services? Services Receipts and Charges and
17. The Defence Services paid from Defence submits it to the CGA, MoF.
Services Estimates: d) He prepares certain subsidiary
1) Army statements of the Appropriation
2) Navy Accounts of Defence Services and
3) Air Force submits them to the FADS.
4) Ordnance Factories * e) He also renders annually an Audit
5) Defence Research & Development Certificate on the accounts of the
Note: 1- * under transition due to Defence Services; to the FADS.
corporatization of OFB f) He prepares the portion of the
Note: 2- Classification Code Heads related to Combined Finance and Revenue
Defence Services Estimate are given in the Accounts pertaining to Defence Services
Classification Hand Book of Defence Services and submits it to the CGA and DGADS for
Receipts and Charges. incorporation in the combined Finance
18. The Civil organisations under Ministry of and Revenue accounts of the Central and
Defence, which are paid from the civil grant State Government in India
of MoD: g) He prepares the Appropriation Accounts
1) Armed Forces Tribunal of the Civil Estimates of the MoD and
2) Coast Guard Organisation sends it to the FADS and the Defence
3) Department of Defence Secretary for onward transmission to
4) Department of Defence Production the CGA and DGADS.
5) Department of Defence Research and h) Under delegated power, he may open
Development the sub detailed heads and object heads
6) Department of Ex-Servicemen Welfare below the Minor Heads to meet local
(DESW) and special requirements with the
7) Department of Military Affairs concurrence of Ministry of Defence
8) Defence Accounts Department (Finance) in consultation with DGADS.
9) Defence Estates Organisation Note: The prior approval of Comptroller and
10) Jammu and Kashmir Light Infantry Auditor General will be obtained (through
11) Canteen Stores Department CGA/DGADS) in cases where an amendment
Note: Classification Code Heads related to Civil affects Major or Minor Head in Pamphlet of RD
Grant of Ministry of Defence are given in the &R Heads and Classification Hand Book of
Pamphlet of Revenue, Debt and Remittance Defence Services - Receipts and Charges.
Heads. 20. The duties of PCsDA/CsDA as an Accounting
19. The duties and powers of CGDA in respect of Officer:
accounting in MoD: 1) To collect accounts of all receipts and
a) He consolidates the accounts of the disbursements in the accounts area;
Ministry of Defence in the manner 2) To ensure accurate and timely payments
prescribed by CGA. in conformity with prescribed rules and
regulations;
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3) Timely realization of receipts and credit Central Treasuries, RBI/SBI and the agent
in Government Account; Banks of RBI
4) To transfer to other Accounts Circle the 26. General banking business done by the
items originating in their area pertaining Reserve Bank of India for Central and State
to them and adjusting in his accounts the Governments are:-
items transferred to him by other a) Receipt of money
Accounts Officers. b) Payment of money
5) To keep a watch over the progress of c) Collection of money
expenditure for the area under the d) Remittance of money
locally controlled heads against 27. As per the provisions of the agreement of
sanctioned allotments and to bring to Central/State Governments with the RBI and
the notice of the allottees and the Reserve Bank of India Act, 1934:
immediate higher authorities, cases in 1) The Central Government may
which the progress of expenditure is operate on every office and branch
abnormally heavy or unusually low; of the Reserve Bank of India and on
6) To implement financial information every branch of the State Bank of
systems as prescribed by the CGDA and India throughout India.
to provide necessary material in respect 2) The State Governments may operate
of reports of Annual Finance Accounts; on every office and branch of the
7) To formulate the budgetary Reserve Bank of India and on every
requirements of the DAD and render branch of the State Bank of India
estimates to the CGDA. within the area of their respective
21. A PCDA/CDA will address CGDA in respect of states.
all matters affecting the classification of 28. With respect to settlement of transactions,
Receipts and Charges. following arrangements are in place:
22. A PCDA/CDA should not address FADS or a) The settlement of a transaction
Services HQ direct in any case except routine pertaining to Loans/Grants from Defence
matters. to a State will be carried out by CAS, RBI,
23. The receipts which are credited into Nagpur through ‘Settlement Account’.
Consolidated Fund of India: b) The settlement of a transaction, other
1) Revenues received by the Central than Loans/Grants, between Defence
Government and a State will be carried out on cash
2) Revenues received by the Union basis by issue of Cheque/Demand Draft.
Territories (without Legislative c) The settlement of a transaction between
Assemblies) Defence and Railways, Department of
3) Loans raised by the Central Government Posts and Department of Supply will be
by the issue of Treasury Bills, carried out by CAS, RBI, Nagpur through
4) Loans or ways and means advances ‘Settlement Account’.
5) Moneys received by the Government in d) The settlement of a transaction between
repayment of loans Defence and other Ministries of the
24. The Contingency Fund of India is at the Central Government and Union
disposal of the President of India. Territories (where departmentalisation
25. The cash balances of the Consolidated Fund of accounts is effective) will be carried
of India, the Contingency Fund of India and out on cash basis by issue of
the Public Account of India kept are kept In Cheque/Demand Draft.
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29. The accounts of all receipts and payments by readjustment within time limit
the Officers of the Defence Services are prescribed by the CGA.
submitted to the PCDA/CDA concerned 4) Suitable action is taken against all
30. The transactions between two Defence concerned for not detecting the
Accounting Circles (between PCsDA/CsDA) error during monthly review and
are settled through Defence Exchange within the supplementary accounts.
Accounts. 40. With respect to the Structure of the
31. The All-India Consolidated Compilations for Government Accounts, the Six tier
Defence Services Receipts and Charges are classification (consisting of total 15 numeric
prepared by the CGDA. digits) followed for civil grant of MoD and
32. The PCDA (BR) intimates the expenditure other ministries is as below-
figures pertaining to Border Roads 1) Major Head- 4 digits (Function)
Organisation to Ministry of Road Transport 2) Sub-Major Head- 2 digits (Sub-function)
& Highways. 3) Minor Head- 3 digits (Programme)
33. PCDA New Delhi is responsible to receive 4) Sub-Head- 2 digits (Scheme)
and adjust all Embassies transactions 5) Detailed Head- 2 digits (Sub-Scheme)
pertaining to the MoD and advised by Pr. 6) Object Head- 2 digits (primary unit of
CCA (MEA). appropriation)
34. Controller General of Accounts, MoF, 41. In respect of Defence Services Estimate, the
maintains the Central Journal and Ledger. structure of accounts followed is five tier as
35. Accounts kept open after 31st March are given below-
known as March Supplementary and March 1) Major Head- 4 digits (Function)
Supplementary Corrections. 2) Sub-Major Head- 2 digits (Sub-function)
36. The accounts of the financial year in the 3) Minor Head- 3 digits (Programme)
books of the PCsDA/CsDA will be finally 4) Sub-Head- 2 digits (Scheme)
closed in March Supplementary Corrections. 5) Detailed Head- 2 digits (primary unit of
37. The dates of closing of accounts in the books appropriation)
of PCsDA /CsDA are intimated by the CGDA 42. The first digit of the Major Head represents
each year. the following:
38. An actual transaction taking place after 31st a) ‘0’ or ‘1’ – Revenue Receipt
March is not treated as pertaining to the b) ‘2’ or ‘3’ – Revenue Expenditure
previous financial year even though the c) ‘4’ or ‘5’ – Capital Expenditure
accounts for that year are open. d) ‘6’ or ‘7’ – Loan Head
39. After closing of accounts of March e) ‘8’ - Contingency Fund and Public
Supplementary Corrections, a Account
rectification/readjustment, if necessary, may 43. Under the scheme of codification, the
be carried out with following conditions: assigned block of Major Heads and
1) It may be carried out only with the concerned field are as below-
prior approval of CGA, Ministry of a) 0001 to 1999 - Receipt (Revenue
Finance in exceptional cases. Account)
2) The rectification / readjustment b) 2001 to 3999 - Expenditure (Revenue
necessitated is not less than one Account)
Crore of amount in a single c) 4000 - Capital Receipt
transaction. d) 4001 to 5999 - Expenditure (Capital
3) Journal Entry is initiated for Account)
rectification of a misclassification /
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e) 6001 to 7999 - 'Public Debt' Loans and
Advances, Inter-state Settlement and 48. Powers of signing of Punching Medium.
Transfer to Contingency Fund (a) Normal Transfer Adjustments
(i) AAO - upto Rs. 25,00,000
f) 8000 - Contingency Fund of India
(ii) AO/SAO - upto Rs. 1 Crore
g) 8001 to 8999 – Public Account of India
(iii) ACDA/DCDA - upto Rs. 5 Crore
44. 4076 is the only Major Head for ‘Capital
(iv) Jt CDA/Addl CDA - upto Rs. 10 Crore
Outlay (expenditure) on Defence Services’
(v) CDA/PCDA - exceeding Rs 10 Crore
which is used for all Defence Services
(b) Rectification of incorrect adjustments
including Army, Navy, Air Force, R & D and
(i) AO/SAO - upto Rs 25 Lakhs
Inspection Organisation.
(ii) ACDA/DCDA - upto Rs. 1 Crore
45. Some important Minor Heads and the
(iii) Jt CDA/Addl CDA - upto Rs 5 Crore
related Programmes are as below-
(iv) CDA/PCDA - exceeding 5 Crore
1) 001—Direction and Administration
49. Capital Expenditure:
2) 004—Research and Development
1) Expenditure incurred for acquiring
3) 050 —Lands and Buildings
tangible assets of a permanent nature
4) 051 —Construction
2) Creation of assets for use in the
5) 052 - Machinery and Equipment
organisation and not for sale
6) 202 —Construction
3) Expenditure incurred for enhancing the
7) 790-Loans to PSUs
utility of existing assets.
8) 799-Suspense
50. Subsequent, charges on maintenance,
9) 800-Other Expenditure
repair, upkeep and working expenses, which
46. The Controller General of Defence Accounts,
Additional Controller General of Defence are required to maintain the assets in a
Accounts and Pr. Controller/Controller of running order as also all other expenses
Defence Accounts may write off the items incurred for the day to day running of the
outstanding for over 5 years and not organisation, including establishment and
exceeding Rs. 1000/-. administrative expenses, shall be classified
as Revenue expenditure.
47. Transfer entries: The entries intended to
51. Expenditure on a temporary asset is
transfer an item from one head of account
considered as expenditure of a revenue
to another are necessary in order:
nature.
1) to correct an error of classification in
52. The capital assets produced should belong
the original accounts or
to the authority incurring the capital
2) to revise classification provisionally
expenditure
made as a matter of convenience in
53. Capital cost of works which are non-
the first instance;
productive in nature is met from ordinary
3) to adjust, by debit or credit to its
revenues.
proper head an item outstanding
54. Expenditure on account of repairs of
under debt heads;
damage caused by extraordinary calamities
4) to adjust inter-departmental and
such as flood, fire, earthquake, enemy
other transactions which do not
action, will be charged to:
involve the receipt or payment of
1) Capital account or
cash;
2) To Revenue account or
Note: In a transfer entry all particulars explaining
3) Divided between them in such a way
both the nature of the adjustment and, if it is a
as may be determined by
correcting transfer, the grounds of the
Government according to the
correction must be clearly stated.
circumstances of each case.
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55. The pay and allowances of Government 61. The Travelling Allowance of a Government
servants shall be classified in accounts as servant transferred from one department to
part of the scheme activity or organisations another is debited to the department to
(Sub-Head) under a programme (Minor which he is transferred.
Head) below a function (Major/Sub-Major 62. The Travelling Allowance of a Government
Head) to which the service of the servant proceeding to join an appointment
Government servants closely relate. in any department, should in the absence of
56. The transit pay and allowances of a special orders to the contrary, whether in
Government servant proceeding to join an respect of a particular case or class of cases,
office on first appointment or on transfer be charged to the department to which he is
either permanently or as a temporary proceeding
measure or on reversion from one 63. The advance of TA/DA paid in respect of DAD
department to another should, in the personnel while proceeding on or reverting
absence of special orders to the contrary, be from deputation to other Ministries of the
debited to the office to which he is Central Government will be finally adjusted
proceeding. to the respective heads by the Department
57. The transit Pay and Allowances both ways, which makes the payments. The recoveries
of Officers of the Defence Services lent to thereof or further balance payments are
Civil Department (including Post and effected/made by the department which
Railways) or, vice versa, are debitable to the effects recoveries/makes payments when
borrowing Department. final bill is submitted. No credits/debits will
58. The transit pay and allowances both in be passed on to other departments through
respect of the forward and the return Settlement Accounts.
journeys of Government servants 64. The Travelling Allowance of a Government
transferred to or from Missions and Offices servant both when proceeding on transfer
abroad will be borne by the Ministry which to Foreign Service and when reverting to
plans the transfer of the official. duty shall be borne by the Foreign employer.
59. Transit Pay and Allowances in respect of 65. If a Government servant works for more
DAD personnel while proceeding on and than one Government, his Travelling
reverting from deputation to other Allowance may be distributed between the
Ministries of Central Government, the different Governments as mutually agreed
advance of pay paid will be finally adjusted upon.
to the respective heads by the department
which makes the payment. The recoveries
thereof will be finally adjusted to the
respective heads by the office which effects
recoveries and there will be no passing of
debits/credits to other departments,
through settlement Accounts.
60. Travelling Allowances of Government
Servants shall be debited in Accounts as part
of the scheme, activity or organisation under
a programme or function of Government in
connection with which the expenditure on
travel on duty of the Government servants is
solely connected.