Overview - Financial Rules and Regulations
The ordinance consolidates and amends the law/rule relating to the benevolent fund and group insurance of the persons in the service of the Republic and certain autonomous bodies. The two funds and a board known as the “Board of Trustees of the Government and Autonomous Bodies Employees Benevolent and Insurance Fund” has been established by the Government under the provisions of this ordinance for carrying out it’s purpose.
A Government servant has to pay a certain amount of money as premium/contribution into these two funds. Benefits in certain cases are given to an employee or his family from the benevolent fund. Special grants are also paid to the employees from this fund e.g. for marriage of a daughter, scholarship for study and extreme financial distress.
In case of death while in service, the family of a Government servant gets one lump sum from the group insurance fund.
A Government servant after two years of service and until the attainment of 52 years of age must contribute to the General Provident Fund (GPF). However, contribution to the GPF is optional up to two years of service and after 52 years of age until the date of retirement.
Employees whilst in service abroad or on deputation, have to continue contributions in the same manner as being in regular service in the parent organisation.
The relevant audit office maintains the account of each contributor separately, and the compound rate of interest is calculated on the yearly balance of the deposit of each individual.
A refundable advance can be paid in certain instalments, up to a certain limit of his deposit on approval from the relevant authority on grounds such as house building and repair, purchase of land, performing Hajj in the case of a Muslim employee, marriage and other religious functions.
A Government servant can withdraw all of his deposits in the GPF along with the interest at the time of retiring from service or if the incumbent resigns or leaves the service on medical grounds.
When an employee retires after serving in the Government for a certain period of years, he receives a monthly emolument for his maintenance or that of his family, during the remaining period of his life. A Government servant or his family are entitled to various types of pension depending on the circumstances ie. Compensation Pension, Invalid Pension, Superannuation Pension, Retiring Pension and Family Pension.
At least ten years of service is required before allowing a pension to a Government servant and the amount of pension varies depending on the pensionable service length. When a pensioner is accused of gross misconduct, the Government will have the right to withdraw his pension or keep it in abeyance either in part or in full until the appeal, if any, by the incumbent is considered.
A Government officer has to submit his application for pension in a prescribed form to the approving authority along with all related papers/documents as required by the rules. In the case of non-Gazetted staff, the head of the office will examine the Service Book, and ensure that the entire period of service is duly verified before sanctioning the pension. An amount equivalent to one years’ basic salary is allowed to an employee, as a lump sum grant provided that one year of earned leave is due to his credit after allowing the desired LPR.
According to this rule a Government employee will get a charge allowance when he is authorised in addition to his own charge, to hold an additional charge of an office equivalent to his office or a higher office. A person holding a lower post and transferring to a higher post on a temporary basis is on current charge. The holding of current/additional charge is discouraged by the Government.
A person has to handover charge of the present post/office when he is authorised to take up current charge of a higher office. The current charge of an incumbent is not a promotion/or a new appointment as such and one cannot claim pay-scale and other privileges/benefits allowable for being in the post but one can claim the charge allowance.
The charge allowance rules are applicable for posts in both revenue and development budgets.
During every Eid Festival, Muslim employees are allowed to draw an allowance amounting to one month’s basic salary, that is equivalent to the salary drawn in the previous month.
The members of the other religions employed in the service also receive a festival allowance amounting to two months basic salary in one instalment during their main religious festival. A Gazetted officer will not receive a festival allowance if he draws a recreational allowance in a particular fiscal year.
Employees on LPR are also entitled to receive this allowance, but not those who are in full retirement.
Employees who are in work-charged establishments and drawing pay on a regular scale will also get a festival allowance under this rule.
The procedures for deposit and withdrawal of money to and from the Government Exchequer are controlled by these rules. They have three parts:
Part 1 contains the “The Treasury Rules” commonly known as ‘TR’. The TRs are the principal rules guiding the procedure for deposit and withdrawal
Part 2 contains “The Subsidiary Rules” whose acronym is ‘SR’. The SRs are the rules which describe the detailed procedures for the TRs.
Part 3 contains related executive instructions, executive orders, appendices and forms.
The Treasury Rules are approved by the President due to their importance in the application of the financial management system. The Ministry of Finance issues the Subsidiary Rules.
The Executive Engineers of the Road Divisions in the RHD having drawing and disbursing powers often come across and deal with these rules whilst discharging their duties in respect of financial matters.
The procedures for spending money from the Public Fund are governed by the General Financial Rules. Unless any specific procedures are mentioned in CPWA & CPWD codes, the procedures as laid down in the GFR are applicable for the Roads & Highways Department.
The four volumes of the Accounts Code are as follows:
Volume 1 – Contains details of the functions of the Comptroller and Auditor General of Bangladesh in relation to Government Accounts, and the main directions issued by him for general principles and methods of accounting.
Volume II – Contains the directions issued by the Comptroller and Auditor General relating to initial accounts kept by the Treasuries (Thana) and District Accounts Officers. It also describes the form in which accounts are to be rendered by them to the Audit and Accounts Officer.
Volume III – This volume contains Comptroller and Auditor General’s directions regarding the initial and subsidiary accounts kept by the Public Works and RHD Officers, and accounts submitted by these officers to the Audit & Accounts offices.
Volume IV – Contains instructions to the form in which accounts have to be kept in the Accounts office, under the control of the Comptroller and Auditor-General and the procedure to be adopted in keeping them. The instructions relating to the preparation of certain pro-forma accounts of the RHD have been included in this volume.
The principles and basic features of auditing the Government offices by the representative of the Comptroller and Auditor General are contained in this Code.
The manual contains the detailed procedures and instructions for auditing Government offices and departments by the representative of the Comptroller & Auditor General.
The rules contained in the Central Public Works Accounts Code describe primarily the financial methods and procedures to be observed by Public Works Offices in dealing with transactions specifically relating to Public Works, and in keeping and rendering accounts of such transactions supplementary to the rules that are contained in the CPWD code, the General Financial Rules and the Treasury Rules of the Government.
The officers of the RHD, particularly the divisional officers (EE), are required to follow the rules under this code while incurring expenditure of public funds and making accounts for the same under different heads of accounts.
This code is supplemented by a book of forms which is used for maintaining accounts in the divisional offices.
The Central Public Works Department Code contains rules and procedures to be followed when giving technical and financial sanctions and approvals.
This Code is intended to define the scope and functions, in respect of financial matters, of a Public Works Department (PWD) in particular. The previous Public Works Department was named the Communications and Buildings (C&B) department, which was divided into two separate departments, namely PWD and RHD and hence the CPWD Code is also applicable to RHD
The code is divided into six sections:
Section I - Introduction
Section II - Establishment and Miscellaneous
Section III - Duties of Officers of Public Works Department
Section IV - Works
Section V - Building
Section VI - Stores
Together with other accounting procedures, practices and methods to be applied, this code contains rules and general procedures for project works i.e.
1. administrative approval
2. technical sanction
3. expenditure sanction
4. appropriation of funds
6. deposit works
It also describes the duties and responsibilities of officers whilst dealing with financial and accounting matters relating to the establishment, for example payroll.
The current levels of financial authorities of RHD officers are detailed in Table 7.1 overleaf. The levels of authority are subject to review as the need arises, and the Table is only intended for guidance.