Duties and Responsibilities of DDOs - HIPA

Duties and Responsibilities of
DDOs
Lalit Kumar
Asst. Prof. (FFM)
HIPA

At the end of the session, the trainees
will be able to
• Understand the role of DDO in Government’
financial system
• List out the duties of DDOs
• Indentify the responsibilities of DDOs
• Describe the skills required to fulfill the duties
and responsibilities

Financial Management in Govt Organizations
Financial Management involves raising of funds and their use in an Economical,
Efficient, and Effective manner to achieve organizational objectives and targets.
Cost Control
Pricing of products and
Services
Inventory Management
Valuation of Assets and
Liabilities
Financial Policies
including Dep. Policy
Budgeting
Accounting and
Auditing
Contract Management :
Purchases, Vendor
selection, Monitoring
and implementation
Management of
Surplus funds or
Writing off losses

Where the DDO stands in State
Financial System?
• In Haryana, the Finance Department deals in
allocating annual Budget to various departments,
managing their releases, monitoring expenditure,
re-appropriation of funds, interaction with
Treasuries and Accounts and Accountant General,
issuing Loans & Advances to employees of the
State, Issuing instructions related to Pension, DA,
Foreign tours, study abroad and on other
Economy control measures, giving sanctions to
new posts, vehicles to all the Departments.

Where the DDO stands in State
Financial System?
• Accounts are an integral part of financial
management of activities. On the basis of
accounts, the Government determines the
shape of its monetary and fiscal policies. The
accounts of Government are kept in three
parts: -
• Consolidated Funds of India
• Contingency Funds of India
• Public Account

Where the DDO stands in State
Financial System?
• Consolidated Fund of India : All revenues received by the
Government by way of taxes like Income Tax, Central Excise,
Customs and other receipts flowing to the Government in
connection with the conduct of Government business i.e.
Non-Tax Revenues are credited into the Consolidated Fund
constituted under Article 266 (1) of the Constitution of
India. Similarly, all loans raised by the Government by issue
of Public notifications, treasury bills (internal debt) and
loans obtained from foreign governments and international
institutions (external debt) are credited into this fund. All
expenditure of the government is incurred from this fund
and no amount can be withdrawn from the Fund without
authorization from the Parliament.

Where the DDO stands in State
Financial System?
• Contingency Fund of India : The Contingency Fund of
India records the transactions connected with
Contingency Fund set by the Government of India
under Article 267 of the Constitution of India. The
corpus of this fund is Rs. 50 crores. Advances from the
fund are made for the purposes of meeting unforeseen
expenditure which are resumed to the Fund to the full
extent as soon as Parliament authorizes additional
expenditure. Thus, this fund acts more or less like an
imprest account of Government of India and is held on
behalf of President by the Secretary to the
Government of India, Ministry of Finance, Department
of Economic Affairs.

Where the DDO stands in State
Financial System?
• Public Account: In the Public Account
constituted under Article 266 (2) of the
Constitution, the transactions relate to debt
other than those included in the Consolidated
Fund of India. The Debt, Deposits and
Advances in respect of which Government
incurs a liability to repay the money received
or has a claim to recover the amounts paid.

STATE FINANCIAL STRUCTURE
CONSOLIDATED FUND OF THE STATE PUBLIC ACCOUNT
OF STATE CONTINGENCY FUND OF THE STATE
Exercising Authorities
Governor
Chief Minister
Council of Ministers
Administrative Department
Head of Department
Executive Officers:- Controlling Officer Head of
Office Drawing & Disbursing Officer (DDO)
9

STATE FINANCIAL STRUCTURE
CONSOLIDATED FUND OF THE STATE PUBLIC ACCOUNT
OF STATE CONTINGENCY FUND OF THE STATE
Compilation of Accounts
Reserve Bank of India
Accountant General, Hr.
District Treasury
Sub Treasury
D.D.O.
10

Duties & Responsibilities of Drawing
& Disbursing Officers (DDOs)
• Estimation/Collection of Revenue Receipts
• Estimation and incurring of expenditure
• Withdrawal of money and maintenance of Accounts
• Maintenance of Cash Book
• G.P.F. deposits and withdrawals
• Reconciliation
Receipts
of figures of Expenditure and
• Deduction and deposits of Income Tax
• Detection and follow-up Embezzlement/Frauds cases
• Economy in Expenditure
• Financial irregularities
• Cannons of Financial Propriety

Estimates/ Collection of Receipt
Monthly Consolidated Receipt from T.O. duly
signed by him.
Compared & reconcile Consolidated Receipt (CR)
with Remittance Book.
Submit Monthly/ quarterly returns of Receipts in
BM-25.
Report Correction classification – in Reports/
returns.
Money Collected must not be kept out of Treasury –
Such sums be deposited in Treasury without delay.
In reports/ returns such amount be shown in the
month in which actually deposited in Treasury. The
period to which it pertains does not matter.
12

EXPENDITURE
Withdrawal/ Incurring of
Expenditure/Maintenance of Accounts
CHECKS FOR WITHDRAWALS
1. Entry of all withdrawals in the prescribed
Bill Register.
2. Monthly Review of Bill register.
3. Prepare Monthly Certificate of Drawls &
Verification by the T.O.
4. Reconciliation of discrepancies pointed out
by T.O. and proper filing of Certificate.
Continued….
13

CHECKS FOR WITHDRAWALS
5. Expenditure strictly according to allotment
under each Pry. Unit.
6. Prompt attention to any warning from
higher authorities against excess/irregular
expenditure.
7. For additional appropriation make reference
to Controlling Officer/HOD.
8. Each Bill in respective prescribed Form of
Bill- Pay, TA, Medical Re-imbursement
9. Contingency bill in proper Proforma
indicating object head/ codification.
Continued….
14

Cash Book
1. Bound/ Machine numbered pages &
Certificate
2. Regular closing & correct checks of totals
3. Verification cash Balance & recording of
Certificate at the end of Month
4. Comparison of Challans & Entries in Cash
Book with regards to Payment with
Treasury
5. No erasing/ No overwriting in cash Book
6. Deposit of all receipts into Treasury on
same day
7. Safe custody of cash Book
15

Responsibilities of DDO under IT Act
Section – 200 – Fails to deduct – Penalty equal to
sum
Deducted but late deposit – 12% interest
Deducted but not deposited – deposit from pocket
+ 12% + imprisonment – Section – 276
Deduction of Income Tax from Salary
Deposit of Tax Deducted
Penalty for failure to Tax deducted
Furnishing of Certificate for Tax Deducted
Mandatory quoting of PAN & TAN
Annual Return of TDS
Other Aspects
16

Canons of Financial Propriety
1. Same vigilance should be exercised in respect
of expenditure incurred from Government
revenues, as a person of ordinary prudence
would exercise in respect of expenditure of his
own money.
2. No authority should exercise its powers of
sanctioning expenditures to pass an order, which
will be directly or indirectly to its own
advantage.
{PFR Vol. 1 Rule 2.10(a)}
17

Canons of Financial Propriety
3.Government revenues should not be utilized for
the benefit of a particular person or section
of the community unless:-
i. The amount of expenditure involved in
insignificant or
ii. A claim for the amount could be enforced in
court of law or;
iii. The expenditure is in pursuance of recognized
policy or custom.
{PFR Vol. 1 Rule 2.10(a)}
18

Canons of Financial Propriety
4.No authority should sanction any expenditure
which is likely to involve at a later date,
expenditure beyond its own powers of
sanction.
5.The amount of allowance, such as travelling
allowance, granted to meet expenditure of a
particular type should not, on the
whole, be source of profit to the recipient.
{PFR Vol. 1 Rule 2.10(a)}
19

Skills required to fulfill Duties and
Responsibilities
• Knowledge of General System of Financial
Management.
• How to formulate and implement Budget.
• How to supervise works accounts and Cash book.
• Rules regarding procurement of Goods and Services.
• Inventory Management.
• Contract Management.
• Grants-in- aid and Loans.
• Budgeting and Accounting for Externally Aided
projects. (for details)

Non-Financial Duties
• Punctuality, Discipline, Conduct
• Devotion to Duty
• Integrity
• Impartially dealing of files and cases
• Prompt disposal of files and Records
Management
• Time Management and
• Office Management

Questions?
Thanks of careful attention!