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RHD Operational Procedure – Management Services Wing
 
Audit and Accounts
 
OP/AA/1.4 - Remittance, Deposit & Suspense Accounts
 
Purpose and Scope :

This procedure covers the regular review and reconciliation of departmental postings to suspense, deposit, remittance and miscellaneous accounts by the RHD divisions, and subsequent reporting of any irregularities to the Chief Engineer.
 
Definitions :

Suspense Account - The term ‘suspense’ has different meaning at different levels of accounting reporting in the RHD accounting system. At the top, within the broad expenditure code, these are broken down to ‘Misc. PWD Advance’, ‘Stock’ and ‘Purchase’ suspense. At the bottom, within the Works Account maintained for management reporting, this term indicates: ‘Unpaid bills of contractors’, ‘Advances to contractors against work done yet to be measured’, ‘Secured Advances’ and ‘unpaid Muster Roll Bill’, etc.

Deposit Account - The term ‘Deposit’ includes ‘Contractors Security’ in terms of retention money’, ‘Earnest money of tenders’ and any other deposit held by the divisions under rules.

Remittance Account - The term ‘Remittance’ means various control accounts, which are temporary in nature and eventually cleared to zero. The movement of transactions within the remittance heads should involve two divisions, or a division and the Chief Accounts Officer or Controller General of Accounts. Execution of work by one division on behalf of another is an example of the first category and remittance to and withdrawal of money from Bangladesh Bank/Sonali Bank by issuing cheques by the RHD officer are the examples of the second category identified above.

Miscellaneous Account - This includes ‘ Imprest Account’, ‘temporay advance’ and ‘cash balance’ of the divisions and sub-divisions.

Treasury Chalan - Is a standardised format, particularly for depositing money to the treasury.
 
Responsibility :

Director - Audit & Accounts - The Director will supervise the review of movement of transactions of each individual account under the broad headings defined above, including the monthly balances of each division, reporting any irregularities to the CE, and instructing the division to rectify any errors/irregularities detected.

Accounts officer - Audit - will maintain individual registers for each account head, each month including Contractor Security Deposit, Remittance to Treasury (Bank), and Remittance from Treasury (cheque drawn on the Bank). Registers will also be maintained for suspense transactions (top level) and suspense transactions (within the Works Account). He will report (in summary form) and keep a note of any unusual movements under each accounts head.
 
Method :

On receipt of a copy of the monthly accounts from the divisions the following activities should be undertaken.

4.1 DEPOSIT REGISTER

Receipts and disbursements under any deposit head should be recorded in the ‘deposit register’ and balances obtained and recorded in a separate column. The starting month should record the opening balance received (confirmed by the Divisional Officer with his signature confirming its correctness).

4.2 REMITTANCE TO/FROM TREASURY REGISTERS

The cash deposited by each division to the Bank (by Treasury Chalan) should be recorded in the ‘Remittance to Treasury Register’. Each division should collect a ‘Consolidated Treasury Receipt’ from the respective District Accounts Office each month and send a copy to the Director, Audit & Accounts. The amount in this receipt should match that recorded in the register from the monthly accounts. Any discrepancy should be investigated. This should be checked on a test basis by collecting corresponding information from the Controller General of Accounts office.

Remittance from the Treasury (cheque drawn from the Bank) should be recorded in the ‘Remittance from Treasury Register’, maintained for this purpose. The divisions should collect the ‘certificate of cheque settlement’ from the respective District Accounts Office each month and send copy to the Director, Audit & Accounts, along with the list of outstanding cheques. This should be recorded in the ‘Remittance from Treasury Register’, including the outstanding amount of cheques. Any discrepancy detected should be investigated. The amount of paid cheques should be checked with the figures held by the Controller General of Accounts.

4.3 OTHER REGISTERS TO MAINTAIN AND REVIEW

Every division should send a statement showing the amount of unpaid contractor bills, unpaid muster roll and their settlement on a monthly basis. A consolidated register should be maintained at the Director Audit & Accounts office to record the movement of liability against contractors’ bills and muster roll payment.

A suitable register should be prepared for ‘imprest account’ and ‘temporary advance’ to monitor adjustments from information received from divisions, on a monthly basis.
 
References :

b) General Financial Rules

c) Central Public Works accounts Code

d) Treasury Rules

e) Account Code Vol. III
 
Procedure Flowchart :

 


 


 

 

For duties associated with each grade of personnel see

 

Updated on : 1/1/2004

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