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RHD Operational Procedure – Management Services Wing
 
Audit and Accounts
 
OP/AA/1.1- Consolidated Monthly and Annual Accounts
 
Purpose and Scope :

This procedure covers the process for the monthly monitoring and consolidation of RHD divisional accounts and the compilation of the RHD's annual accounts. This includes transactions processed by offices other than that of the Director, Audit & Accounts. This includes accounts for both the revenue and development heads.
 
Definitions :

C & AG - The Comptroller & Auditor General is the supreme audit institution of Bangladesh. This office prescribes the form for submitting accounts. As per constitution he is empowered to conduct audit on the accounts of government/semi-government/departments/autonomous bodies/authorities etc.

CGA - The Office of the Controller General of Accounts acts as the ‘Paymaster General’ as well as the Chief Accountant of the GoB. This office reports directly to the Ministry of Finance, although postings and transfers to his office are managed by the C & AG.

DG–Works Audit Directorate - An office under the C & AG for the independent audit of departments engaged for public works construction namely RHD, PWD, PHE, WDB, PDB etc.

CAO - The Chief Accounts Officer in the MoC reports directly on accounting and financial matters to the ‘Principal Accounting Officer’, the Secretary of the Ministry. Although reporting directly to his host Ministry, the CAO belongs to the BCS Audit & Accounts cadre, under the establishment of the C & AG.

Divisional Accountant (DA) - Each operational division of RHD has a Divisional Accountant attached. The DA is responsible for assisting the Divisional Officer (i.e. Executive Engineer, EE) with financial matters and the preparation of Divisional monthly accounts. The DAs are appointed by C & AG and although he reports on a day–to–day basis to the Divisional Officer. His administrative control lies with the DG-Works Audit Directorate.
 
Responsibility :

Divisional Accountants -

a) The Divisional Accountant (DA) assists the Divisional Officer (EE) with financial matters generally, including proper classification of transactions. The DA assists with the monthly compilation and consolidation of all accounting within his Division (monthly account).

b) Although overall responsibility for the monthly account is with the Divisional Officer (EE), the EE/Divisional Accountant will assist the Director, Audit & Accounts to clarify and/or confirm any queries/observations arising from the monthly accounts.

c) The Divisional Accountant assists the Divisional Officer (EE) to ensure the divisional accounts are compiled and consolidated in line with the central reporting system, which is followed by the RHD.

Divisional Officers -

a) All Divisional Officers (e.g. EE, zone) provide a monthly-consolidated summary of receipts and expenditures from their division to the CAO of MoC (with complete vouchers) and copy (including copies of vouchers) to the Director, Audit & Accounts in Sarak Bhaban. Each return must be received at Sarak Bhaban by the 10th day of the following month.

b) The monthly account must be signed by the relevant Divisional Officer to indicate his approval and certify completeness and accuracy of the record.

Sub-Divisional Engineers - Field Divisions -

a) Although they do not maintain Cash Book (as maintain in divisional office) or are unable to raise cheques directly, occasionally SDE’s may process cash transactions via Imprest Account/temporary advance. These transactions must be reported to the Divisional Officer for incorporation in the division's monthly accounts within the stipulated time as per rule & register should be maintained in the SDE’s office.

Chief Accounts Officer -

a) The CAO should also receive the full set of RHD monthly divisional accounts. He must produce a summary consolidated statement of expenditure and income, (monthly as well as an annual) for the Ministry of Communications. This could be considered as “external” reporting in the context of RHD, whereas the corresponding procedure performed by the Director, Audit & Accounts can be considered as an “internal” reporting, to benefit RHD's management.

b) The CAO also consolidates all RHD accounts from the “Presidency” area (Dhaka City). This includes RHD (full-time) officer salaries and allowances, as well as supplies and services. These items of expenditure remain permanently outside the control of the RHD divisional structure.

Director - Audit & Accounts - will have overall responsible for monthly consolidated accounts and management report.
 
Method :

Individual monthly accounts (receipts and expenditures) are the principal accounting output from all the RHD operating divisions. Once complete returns are received from all divisions by the office of the Director of Audit & Accounts who consolidates all entires according to the central accounting classification (as well as RHD's is own classification, where applicable). The annual accounts take all the individual monthly consolidations and combine into one consolidated statement, representing all expenditure and income for the divisions for the whole 12 months. The methods and procedures for this include:

· The consolidation must have one consolidated amount for each appropriate accounts code. The Director, Audit & Accounts ensures all codes included are valid and appropriate.

· The consolidation process must ensure the completeness of the monthly return. A checklist procedure is used to check returned are received and included in the monthly consolidation.

· The consolidation should be completed using the appropriate computer systems, available in the office Director, Audit & Accounts.

· Individual returns must be scrutinised and checked before including in the consolidated statement. This process should check the arithmetical accuracy of each return and check debits and credits are balanced. In addition, it should ensure all codes used are valid and appropriate, and any obvious misclassifications are queried.

· Follow-up action should be taken by the Office of the Director, Audit & Accounts whenever accounts are not received on time (or at all), where there are obvious inconsistencies or errors, or where the overall presentation/layout of the return tailors to meet the required standard. This should involve directly contacting the office concerned and requesting additional or amended information.

· The Director, Audit & Accounts must also ensure a full copy of the consolidated monthly and annual ‘Presidency’ expenditure and income is received from the Office of the CAO. This data must added to the summary of the divisional returns to produce a complete account of all financial activity of RHD, irrespective of where the data is processed or reported.
 
References :

a) General Financial Rules

b) Central Public Works Account (CPWA) Code

c) Treasury Rules and Subsidiary Rules

d) Account Code (Volume III)

e) Classification Chart of the Government of Bangladesh (November 1997)

f) Project Monthly progress reports

g) Financial Management Reform in the RHD and the role of the FMU (Inception Report – March 2001)
 
Procedure Flowchart :

The procedure flowchart for this procedure is detailed below.
 


 


 

 

For duties associated with each grade of personnel see

 

Updated on : 1/1/2004

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