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Rajasthan Panchayati Raj Rules 1996 (Chapter 11 Budget, Accounts and Audit)

Rajasthan Panchayati Raj Rules 1996 (Chapter 11 Budget, Accounts and Audit)

Rajasthan Panchayati Raj Rules 1996

 Rajasthan Panchayati Raj Rules 1996

Budget, Accounts, and Audit

193. Budget. The budget is a statement of the estimate of the receipts and expenditures of a Panchayati Raj institution for any year.

(1) Budget estimates must be prepared by the Secretary for Panchayat, Vikas Adhikari for Panchayat Samiti, and Chief Executive Officer for Zila Parishad and presented in the general meeting of the Panchayati Raj Institution concerned by February 15th.In the case of a panchayat, the budget shall also be placed before the gram sabha as provided in Sub-Section 4 of Section 3 of the Act.

(2) The budget shall contain a probable estimate of receipts and expenditures during each financial year and shall provide provisions as mentioned in Section 74 of the Act. It should be as close and accurate as possible.

(3) The sums to be provided in the estimates of receipt and expenditure under a particular head of account must be such as can be reasonably expected to be received or expended during the year and must include the receipt or payments of arrears during that year.

(4) The budget shall be prepared in prescribed Form No. XXVII for the panchayat and Form No. XXVIII for the panchayat samiti or zila parishad.

195. Budget Contents (1) The budget, among other things, should contain adequate and suitable provisions for:

(a) The opening balance in its funds and the estimated income of the Panchayati Raj Institution for the budget year

(b) Estimated income shall be separately indicated for:

(i) own income from

(a) Tax Revenue

(b) Non-Tax Revenues like fees, penalties, fairs, income from the sale of land, temporary use of land, kine houses, grazing grounds, water reservoirs, agricultural farms, orchards, bone contracts, rental income from shops and buildings, etc.

(ii) Grant-in-aid from the state government under different heads like share against land revenue, maintenance grant, development grant, establishment grant, incentive grant, matching share, education, rural sanitation, housing, improved chulha, water supply and cleaning, and general purpose grant;

(iii) Receipts from the Central Government through the District Rural Development Agency for Rural Development Works and Employment Generation

(c) expenditure proposed on establishment and discharge of their duties under the Act and Rules. Estimates should be

(i) for existing expenditures and for

(ii) new expenditures, separately indicating special reasons for new items.

(d) Due discharge of all liabilities concerning loans and for all other commitments like refunds, etc.

(e) A working balance of at least 20% of the year’s estimated receipts of own income.

(2) The budget shall also contain:

(i) Actuals from the previous year versus original estimates for that year;

(ii) Revised estimates for the current year as compared with the original estimates for that year; and

(iii) Budget estimates for the ensuing year as compared with the original or revised estimates for the current year.

196. Budget Calendar: The following program shall be adhered to strictly in the preparation and scrutiny of the budget estimates:

(a) The last date for finalizing the budget and passing it by the respective Panchayati Raj Institution. 15th February

(b) The last date for submission to the next higher authority as provided in Subsection (4) of Section 74 of the Act, which is February 28,

(c) The last date for returning the budget estimates to the sanctioning authority. 20th March.

197. Sanction of budget. (1) The sanctioning authority, except for points as mentioned in Sub-Section (4) of Section 74 of the Act, shall also scrutinize the following:

(i) The provisions contained in Rules 194 and 195 have been followed in the preparation of the budget;

(ii) The estimate of receipts and expenditures is correct and provides for the collection of loans outstanding or falling due during the budget year.

(iii) the income from the sale of Abadi is not used to pay establishment charges.

(iv) The recommendations of the Panchayat and Development Department issued from time to time have been duly considered in framing the budget.

(v) Provision has been made for obligatory charges like sanitation, electricity, water, rural roads, maintenance and repairs of school buildings, and development activities, etc., in panchayat budgets, as well as for pay and allowances, contingencies for development works, and repayment of loans, if any, in panchayat samiti and Zila Parishad budgets.

(vi) Variations between the figures of the budget year and those of the previous year have been adequately explained.

(2) The sanctioning authority shall sanction the budget with or without modifications, as it thinks fit, after satisfying the points mentioned in Sub-Rule 1.

(3) The sanctioned budget shall be returned to the respective Panchayati Raj Institution on or before March 20th.

198. Establishment estimate. – Panchayat Samiti and Zila Parishad shall separately prepare an estimate of establishment expenditure indicating:

(i) authorized strength cader-wise, pay scale, rate of pay, dearness allowance, and increments that will become due during the fiscal year’s currency.

(ii) probable savings due to vacancies.

199. Re-appropriation from one budget head to another. The amount provided under any head in the budget passed for a financial year may be transferred wholly or partly to any other head subject to the following conditions:

(i) That due provision is ensured for services or liabilities which a Panchayati Raj Institution must execute, maintain, or pay for by the Act or rule made thereunder,

(ii) That panchayat has obtained the approval of the gram sabha for transferring the unutilized budget of previously sanctioned works for new works instead of unspent balances during the year.

(iii) That grant-in-aid from the state government or central government is spent for the purposes for which it has been sanctioned.

(iv) That amount from one major head is not transferred to other major heads.

200. Non-budgeted expenditure is to be incurred with permission. (1) No Panchayati Raj Institution shall incur any item of expenditure not included in the sanctioned budget or more than the budget allotment without the prior permission of the sanctioning authority. A supplemental or revised budget may be prepared for such expenditure.

(2) Care shall be taken to see that budget limits are not exceeded.

201. Quarterly Review. – Every year, the Panchayati Raj Institution shall prepare a quarterly statement of budget provision and cumulative expenditure on each head and place it in the meeting to be held in April, July, October, and January, along with physical targets and achievements, as well as reasons for the slow pace of expenditure, if any.


202. Assessment and collection of revenue.  (1) It shall be the duty of the Head of Office of a Panchayati Raj Institution to ensure proper maintenance of accounts of revenue as well as expenditure.

(2) The head of the office shall also be responsible for the timely receipt and collection of revenues; he shall ensure that dues are correctly and regularly assessed, collected, and promptly credited to the fund. He will accordingly arrange to obtain from all the sources where revenue arises, returns regarding the progress of realization, and cause them to be noted in the demand and collection register in Form No. VI.

203. Revenue leakage checks. – To ensure that all revenue collected is correctly accounted for and there is no leakage, the head of the office will ensure that adequate checks are carried out and may, for this purpose, arrange for test inspections of account receipts.

204. Revenue arrears: No amount due to the Panchayati Raj Institution shall be left outstanding without sufficient reasons, and where such dues appear to be irrecoverable, the orders of the competent authority for their adjustment, remission, reduction of demand, or write-off must be sought without any avoidable delay.

205. Credit after actual realization: No amount may be credited as revenue until it has been actually realized.

206. Make a P.D. deposit at a bank or post office. (1) All amounts received in the panchayat office shall be deposited in the post office or bank.

(2) All amounts received by the Panchayat Samiti or Zila Parishad shall be deposited in the P.D. Account of the Government Sub-Treasury or Treasury.

(3) All grants from the state government shall be transferred to the P.D. account of the concerned Zila Parishad every quarter.

(4) The Chief Executive Officer shall ensure that the share of the respective Panchayats or Panchayat Samitis is transferred to their accounts promptly.


207. Drawal of money: money will not be drawn from the fund unless it is required for immediate disbursement on an item of expenditure under any rule or on a specific order of the competent authority.

208. Standard of financial propriety: The head of the office of any Panchayati Raj Institution should be guided by established standards of financial propriety and must exercise the same vigilance as a person of ordinary prudence would exercise in respect of the expenditure of his own money.

209. Liability is not to be incurred without budget provision. No authority will incur expenditures or enter into any liability unless there is a budget provision for it and the expenditure has been sanctioned by the competent authority.

210. Expenditure control. – The head of the office must ensure that not only the total expenditure is kept within the limits of the authorized appropriation, but that the funds allotted are spent in the interest and service of the Panchayati Raj Institution concerned and on the objects for which provision has been made. To exercise proper control, he should keep himself closely acquainted with the progress of expenditures, commitments, and liabilities incurred but not paid.

211. Drawal of funds. (1) Money shall be drawn only through checks. Payments to third parties over Rs. 1,000/- must also be made via account payee checks. Payment can be obtained directly from the bank, Treasury, or Sub-Treasury. A reference to the check number and date will invariably be given on the concerned bill so that no double payment of the same bill may be made.

(2) The head of the office is personally liable for drawing only the amount specified in the bills authorized in the meeting by competent sanction. There shall be no excessive withdrawal of funds:

Provided that when cheques require joint signatures and it is not possible to obtain the signature of the Sarpanch, Pradhan, or Pramukh for more than ten days but payments are to be made urgently, Vikas Adhikari may sign cheques in place of the Sarpanch, the Chief Executive Officer in place of the Pradhan, and the Collector in place of the Pramukh, but reasons therefor shall be recorded in writing as regards the urgency of such payments.

(3) Imprest money as a permanent advance for unforeseen contingent expenditures shall also be authorized by the respective Panchayati Raj Institution under Sub-Section (3) of Section 64, but it should normally be as under:

(a) Panchayat. [Rs. 10000/-]

(b) Panchayat Samiti/Zila Parishad………………………………………………..

[The aforementioned amount shall, in addition to the provisions mentioned in the General Finance and Accounts Rules related to unforeseen contingent expenditure, also be spent on such items related to construction works for which payment cannot be made by account payee cheque. In all such cases, the reasons for not making the payment by account payee cheque shall be recorded in the relevant record of the Panchayati Raj Institution concerned. After having recorded the reasons above, the installment amount may be withdrawn through bearer chequing.

On the first of April each year, the person in possession of a permanent advance must acknowledge receipt of such an advance.

(4) The head of the office shall physically verify at the end of the month that any money over the aforesaid limits is deposited back into the P.D. account or bank.

[(5)] The head of the office, sarpanch, secretary, or cashier of the Panchayati Raj Institution shall be personally liable if the cash balance in the Panchayati Raj Institution concerned exceeds the limit prescribed above at the end of the month. In such cases, they will be jointly liable to pay interest at the rate of 18% per annum on the excess amount. The amount of the interest so due shall be recovered equally from the Head of the Office/Sarpanch and the Secretary/Cashier.

212. GPF/State Insurance/LIC deductions, etc.—(1) The duty of making proper deductions from pay bills on account of Provident Fund, State Insurance, Income Tax, Life Insurance, and House Rent deductions, etc., shall devolve on the drawer of the bill.

(2) No Vikas Adhikari shall draw cash against GRE, state insurance, life insurance, and income tax deductions from the salaries of employees. He shall get such checks prepared along with salary bills in the name of the Director of State Insurance, G.P.E., Income Tax Officer, and L.I.C. branch simultaneously and dispatch them during the first week of the month. Vikas Adhikari will be held personally liable for any violations of this procedure.

In the case of a panchayat, all money shall be drawn with the joint signature of the Sarpanch and Secretary as per provisions of Sub-Section (5) of Section 64 of the Act; in the event of the Secretary’s absence, illness, or leave, the Vikas Adhikari of the Panchayat Samiti in whose jurisdiction such a panchayat falls, will sign the check or that panchayat along with the Sarpanch to facilitate immediate and urgent payments.

214. Expenditure out of the own income of the Panchayati Raj Institution (1) A Panchayati Raj Institution may incur expenditures from its own income raised through taxes, fines, fees, and other assets placed at its disposal with the approval of the general meeting or standing committee, as per the limits specified by the government from time to time.

(2) Expenditure from own income shall be incurred only after meeting liabilities for pay, allowances, and contingencies.

(3) After taking other commitments and assurances into account, all expenditures will be subject to the availability of own income funds.

(4) Income from the education cess will be spent only on educational buildings and activities; however, income from other sources may also be spent on such buildings and activities.

(5) No expenditure will be incurred outside the jurisdiction of the Panchayati Raj Institution.

(6) The Panchayati Raj institution concerned shall prepare and approve a yearly budget estimate for receipt and expenditure of own income.

(7) No expenditure will be made based on anticipated personal income.

Advances to employees. – (1) Advances to employees for conveyance purchases, advances for food grains, and festivals shall be governed by the terms and conditions in effect for state government employees at the time, except that such advances may be granted out of own income. If its own income is not sufficient for this purpose, the advances may be granted from other resources that may be available through the Panchayati Raj Institution. The interest earned is considered income for the Panchayati Raj Institution and is credited to its fund.

(2) Advances for work or other specific purposes must be repaid within three months, or they will be considered temporary embezzlement, and the unutilized cash balance must be deposited back with 18% interest.

(1) Loans granted to a Panchayati Raj Institution by the state government or any corporation of the central or state government will be the first charge on the fund, and loan installments must be paid on time, or the state government may adjust the amount due out of the grant-in-aid payable or take other appropriate steps to recover the money.

(2) A Panchayati Raj Institution may obtain loans for rural housing, the construction of shops, and other purposes and use and repay the loan installments as per the terms and conditions of the financial corporation for Panchayati Raj Institutions. Panchayati Raj Institutions may charge a one percent agency fee for services rendered for loan account maintenance.

(3) Outstanding loans will continue to be recovered by Panchayat Samitis and deposited with the state government in the relevant head of revenue.

217. Specimen Signature. – The specimen signatures of Vikas Adhikari/Pradhan and the Chief Executive Officer/Pramukh shall be sent to the District Treasury and the concerned sub-treasuries. In the case of a panchayat, a specimen of the sarpanch’s or secretary’s signature must be sent to the bank or post office where the accounts are kept.

Cheque Books. – (1) The Treasury, Sub-Treasury, Bank, or Post Office’schequebookss shall be kept in charge of the Head of Office. They shall be kept under lock and key.

(2) Alchequebooksks, when received, will be counted, and each foil of the checkbook will be distinctly marked with a rubber stamp bearing the name of the concerned Panchayati Raj Institution.

(1) The pay and allowances of the officers and staff, as well as honoraria and allowances to members, shall be a second charge on the fund’s resources.

(2) In case a Panchayati Raj Institution fails to pay salaries on due dates, the State Government may direct the Vikas Adhikari to freeze the cash balances and make payments by drawing such amounts.

220. Due date: Pay and allowance earned by the officers and employees shall become due for payment on the first working day of the following month.

221. Payment acknowledgment. – The head of the office is personally liable for any amount drawn on a bill or cheque signed by him until he has paid it and obtained a legally valid receipt from the payee.

222. Pay and advances on transfers. – Pay and advances on transfers are governed by the State Government Servant Rules as they apply from time to time.

223. Other charges (1) All incidental and miscellaneous expenses incurred for the management of the office are flexible and fluctuating in nature, and utmost care has to be taken to minimize them. The office drawing the bill shall be responsible for seeing that the items of expenditure included in the bill are of obvious necessity and that any articles purchased have been secured at fair and reasonable rates.

(2) Drawl of advances for other charges should be made on duly supported vouchers with the payee’s receipt or on firms’ or contractors’ pro forma bills, and drawl of advances should not be allowed unless required for meeting any special nature of expenditure.

224. Revenue Refund. – Before admitting any demand for revenue refund, the original credit must be traced in the cash book, the related receipt must be linked, and a refund entry must be made distinctly in red ink in these documents to guard against a second claim. Where tax or cash is refunded, a cross-reference shall also be given in the Demand and Collection Register.

225. Overpayments and wrong payments: (1) The head of the office is responsible for prompt recovery of any overpayment made out of the fund, even if it was made in good faith.

(2) In case such payment has been made due to some fraud, an F.I.R. shall also be lodged against such a person at the police station for wrongfully defrauding and receiving the money.

226. Payment of time-barred claims – (1) The head of the office shall pay time-barred salary, travel allowance, and medical reimbursement claims that are more than three years old after a pre-check by the junior accountant.

(2) All such claims spanning more than three years must be approved by the Chief Executive Officer after a pre-check by the Accountant or Assistant Accounts Officer of the Zila Parishad.

provided that:

(a) The propriety of the claim is established,

(b) If orders or documents on which the claim is based are available,

(c) A reference to previous bills for which a claim was not drawn is given.

(d) Reasons for the delay are explained.

(3) Contingent claims up to three years shall require the prior sanction of the Chief Executive Officer, whereas claims after three years shall require the sanction of the Director of Rural Development and Panchayati Raj.

227. Powers of Regional Officer and Head of Office under GF and AR: (1) Financial powers of the Regional Officer not specified in these rules shall be exercised as per GF and AR by the Chief Executive Officer about employees posted in the district.

(2) Powers of the Head of Office as per GF & AR and not specified in these rules shall be exercised by the Sarpanch for the Panchayat, Vikas Adhikari for Panchayat Samiti, and the Chief Executive Officer for Zila Parishad.

Maintenance of Accounts

228. Accountability for all cash transactions. — Without exception, all cash transactions to which the Panchayati Raj Institution is a party must be accounted for, and account maintenance must be transparent.

229. Cash Book.—(1) A cash book shall be maintained by each Panchayati Raj Institution in Form No. XXIV for keeping a record of the receipt and payment of money.

(2) All cash transactions must be recorded in full in the Cash Book as soon as they occur and attested in the form of a check by the head of the office.

(3) The cash book shall be closed regularly, and the head of the office shall initial each entry as a token of its correctness.

(4) At the end of each month, the head of the office should verify the cash balance in the chest with the balance as per the cash book and record a signed and dated certificate to the following effect:

Certified that the cash balance was checked and discovered to be as follows:

In the event of a difference between the actual cash and the balances per cash book, it shall be explained.

(5) A surprise check of the physical cash balance shall also be made twice a month to prevent any misuse of money.

(6) The Panchayat shall also maintain a separate cash book for funds allotted for development schemes.

230. Receipt of money. (1) When money is collected or paid into the office, a receipt shall be given to the payer in Form No. XXX.

(2) The receipt shall be signed by the secretary or cashier.

(3) The amount must be written in both figures and words.

(4) The head of the office shall satisfy himself that the amount has been correctly entered in the cash book.

(5) Blank receipt books shall be kept in safe custody, and a proper account of receipt books shall be maintained.

231. Security of Cashier. (a) The person in charge of cash shall give adequate and valid security commensurate with the amount of cash likely to be kept in his custody.

(2) Security shall be provided in the form of fidelity bonds, which must be renewed before their expiration date.

(3) Allowance at the rates prescribed by the State Government shall be payable to the cashier accordingly.

232. Double lock. (1) All cash over the fidelity bound must be kept in a strong iron chest with a double lock arrangement.

(2) All the keys to the same lock shall be kept in one person’s custody. Keys to other locks must be kept by the Head of Office. The chest shall never be opened unless both custodians of the keys are present.

233. Security of cash. A security guard may be arranged from the police station on payment to accompany the cashier when heavy cash balances are brought by him from the bank to the office or vice versa.

234. Presentation of claims (1) All claims for payment will be prepared in Form XXXI and presented at the office of the Panchayati Raj Institution concerned, where they will be checked and passed for payment by the head of the office.

(2) The officer making a payment order is personally responsible to see that the claim is complete and genuine in all respects and affords sufficient information as to the nature of the payment made.

235. Vouchers. – (1) For each payment of money, the officer spending money from the fund must obtain a voucher outlining the full and clear particulars of the claim as well as all information required for proper classification in accounts.

(2) Every voucher must bear or have attached to it an acknowledgment of the payment by the person by whom or on whose behalf the claim is put forward.

(3) Each voucher must bear a pay order from the head of the office specifying the amount in words and figures.

(4) All vouchers shall be serially numbered date-wise starting from April 1 and must be stamped or written in red ink “paid” on the face of the vouchers so that they may not be used a second time.

(5) The head of the office must initial the voucher when verifying payments in the cash book on the expense side.

(6) Vouchers shall be kept in safe custody for audit and shall be destroyed only after the prescribed period has elapsed.

236. Ledger.—(1) A ledger in Form No. XXXII shall be kept and maintained in each Panchayati Raj Institution for showing expenditure incurred under various heads of expenditure incurred out of the fund.

(2) In the ledger, a page or some pages shall be allotted for each head of expenditure provided for in the sanctioned budget and will be posted from the cash book regularly.

237. Register of Revenues.—(1) A register of revenue receipts in Form XXXIII shall also be kept and maintained in each Panchayati Raj Institution for recording receipts therein on account of all taxes, fees, and other income.

(2) A separate page or pages according to the requirements shall be allotted for each head of income, tax, or fee, and posting shall be made from the cash book regularly.

238. Accounts Reconciliation. – (1) It shall be the duty of the Panchayat Secretary to reconcile the deposit and withdrawals with the bank or post office passbook based on the Panchayat record every month and correct any errors.

(2) In the case of Panchayat Samiti and Zila Parishad, the cashier shall reconcile the P.D. account in Treasury or Sub-Treasury every month.


239. Stock Register.—(1) A stock register in Form XXXIV shall be kept and maintained by each Panchayati Raj Institution, in which shall be entered the receipt and issue of all stocks and other movable properties of the Panchayati Raj Institution concerned.

(2) The account of stores will be maintained for each item separately. Entries on the receipt side will be made directly from the bill of the supplier; stores shall be issued as per genuine indentations, and a proper receipt shall be obtained for the issue of stores. It may be correctly entered on the issue side of the stock register.

240. Custody of Stores. (a) The person entrusted with the custody of stores will be responsible for their safety, keeping them in good condition, and protecting them from loss, damage, or deterioration.

(2) He shall ensure proper and timely maintenance of machines, telephones, typewriters, photocopiers collars, and other office equipment to keep them in working condition at all times.

241. Consumable Store: (1) A separate register shall be maintained for consumable stores and stationery articles in Form XXXIV itself.

(2) The head of the office shall fix quarterly norms for the issue of stationery articles for each official or section. Norms shall be so fixed as to avoid misuse or excessive use.

242. Physical Verification (1) Physical verification of stores will be carried out at least once a year, and in token of having done so, he will record a certificate and make a note of any excesses or shortages actually found.

(2) Proper action shall be taken by the head of the office for the recovery of any loss of store articles by fixing responsibility after proper inquiry.

243. Disposal of unserviceable, obsolete, or surplus store articles – (1) The head of the office shall constitute a committee of three persons, including one person from the accounts section, to prepare a survey list for declaring store articles as obsolete, unserviceable, or surplus.

(2) The powers of write-off shall be as under:

(a) Sarpanch/Vikas Adhikari: Store articles up to Rs. 10,000/- in book value.

(b) Chief Executive Officer: Store articles up to a book value of Rs. 20,000.

(c) Director, Rural Development, up to Rs. 50,000/-

(d) Development Commissioner—Rs. 2 lakhs

(3) All such store articles shall be disposed of by destruction or auction after competent sanction, and the proceeds thereof shall be credited to the fund.

244. Disposal of unserviceable vehicles. – (1) At the Zila Parishad level, a committee shall be formed for the condemnation and auction of vehicles (Jeep, Car, Pickup, Tractor, Motor Cycle, Three Wheeler, Bull Dozers) of Panchayati Raj Institutions as follows:

(a) Chief Executive Officer and Chairman

(b) Accounts Officer/Assistant Accounts Officer of Zila Parishad—Member

(c) Police Department M.T.O., Transport Department M.V.I., District Pool mechanic at district headquarters, and State Garage technical officer at divisional headquarters.

(2) The above committee will ensure that the vehicle has covered the prescribed distance and time as under:

nature of the vehicle K.M.(Lakh) Period(Year)

1. Motor cycle/three-wheeler 1.2;

2. Light Motor Vehicles 2 8

3. Medium Motor Vehicles 3 10

4. Heavy Motor Vehicles 4-10

Tractors/Bull Dozers: 20,000 hours of operation

(3) Such vehicles that have completed the prescribed distance and life but are fit for use in the opinion of the committee shall not be condemned.

(4) Committee members shall physically inspect the vehicle before condemnation and certify that:

(a) The vehicle has traveled the prescribed distance and lived the prescribed time.

(b) The vehicle is beyond economic repairs and uneconomical to operate due to excessive consumption of gasoline or diesel.

(c) That the cost of replacing parts will be prohibitively expensive, making the continued operation of the vehicle uneconomical.

On the recommendation of the committee, the chief executive officer shall issue orders for the auction of condemned vehicles.

(5) If a vehicle has not traveled the prescribed minimum distance or has not been used in the last seven years, or has been in an accident and will not be useful after repairs, the committee shall recommend the case, certifying that:

(a) The vehicle is beyond economic repair and uneconomical to operate.

(b) The replacement of parts shall cause heavy expenditure, and further running of the vehicle shall be uneconomical.

(c) The total cost of repairs and replacement of parts shall be Rs… as certified by the surveyor of the Motor Garage Department.

The Development Commissioner will have condemnation authority over such vehicles.

(6) Condemned vehicles shall be auctioned at the district level by the committee consisting of:

(a) Additional Collector (Development)

(b) Chief Executive Officer

(c) the Zila Parishad’s Treasury Officer or Accounts Officer.

A.D.M. (Dev.) or the C.E.O., whoever is senior, will act as chairman.

Provided that vehicles purchased from the consolidated fund of the state shall be auctioned through the State Motor Garage at the concerned divisional headquarters,

(7) The sale proceeds of vehicles auctioned by the committee in sub-rule (6) shall be deposited in the fund of the Panchayati Raj Institution concerned, and sales tax shall be deposited in the government’s account.

Accounts and Returns

245. Quarterly Return of Accounts A quarterly statement of account of income and expenditure will be prepared by Panchayati Raj Institutions and sent to the next higher authority in Form No. XXXV. Quarterly accounts for the quarters ending June, September, December, and March should be dispatched at the latest by the 15th of the month following the quarter to which the accounts relate. A progressive total of all items of income and expenditure provided in the budget will be made out while preparing such a statement of account and the figures advised to the next higher authority.

(2) At the end of the fiscal year, a panchayat/panchayat samiti shall prepare an abstract of annual accounts in Form XXXVI showing its income and expenditure under each head of the budget and submit it to the state government through Zila Parishad by May of the following year.

(2) The abstract of annual accounts will be accompanied by a statement of grants-in-aid from the state government in Form XXXVII under various heads of accounts, expenditures incurred, supported by utilization certificates, and signed by the head of the office clearly mentioning that the grant has been spent entirely or in part for the objects and purposes for which it was given, the accounts of which have been properly maintained, and the connected vouchers affixed. The Chief Executive Officer will closely scrutinize these statements and send them to the State Government along with his comments, a copy of which will also be given to the Panchayat Samiti or Panchayat concerned.

(3) Each Panchayat Samiti will also enclose a statement of loans and amounts outstanding in Form No. XXXVIII along with its annual accounts.

(4) Along with the annual accounts, a list of works undertaken under the various schemes with the progress of expenditure as provided in Form XXXIX will also be attached.

(5) The annual accounts will also be accompanied by a statement of assets and liabilities of the Panchayat/Panchayat Samiti in Form No. XI.

247. Accounts and Returns of Zila Parishads (1) Every Zila parishad shall also prepare a quarterly statement of income and expenditure as stated in Rule 245 and send it to the state government.

(2) Similarly, every Zila Parishad shall prepare annual accounts of income and expenditure as stated in Rule 246 and send them to the state government by May 15.


248. Audit of Accounts (1) The audit of the accounts of Panchayati Raj Institutions shall be governed by the provisions of the Rajasthan Local Fund Audit Act, 1954, and the Rajasthan Local Fund Audit Rules, 1955, made under the said Act.

(2) A test audit of the accounts may also be carried out on behalf of the Controller and Auditor General of India.

249. Audit Arrangements. – The Panchayati Raj Institution concerned shall make suitable arrangements to enable the auditor to hold his office to conduct the audit and shall keep all records, statements, and so on, ready for the purpose of audit and produce these in the manner required by the audit.

250. Financial Statement Preparation. – The Panchayati Raj Institution shall prepare the financial statements prescribed by the Local Fund Audit Rules, 1955, as well as the actual accounts for the period for which the audit has become due, and produce these when required by the audit.

251. Audit Report: The Audit Report of the Director, Local Fund Audit, shall be sent to the Panchayati Raj Institution concerned. A copy of the audit report to the panchayats shall also be sent to the panchayat samiti concerned. Likewise, a copy of the audit report of Panchayat Samitis shall also be sent to the concerned Zila Parishad, which will see that the irregularities pointed out by the audit are promptly attended to and rectified.

252. Compliance of Audit Reports (1) Compliance with the audit reports sent by the Director of Local Fund Audit shall be made by the procedure laid down in Rule 28 of the Rajasthan Local Fund Audit Rules, 1955.

(2) The Chief Executive Officer and Chief Accounts Officer of Zila Parishad shall review the progress of compliance with audit reports every quarter in the presence of the Deputy Director of Local Fund Audit posted at regional headquarters and take all steps to get them compliant on a campaign basis.

(3) The Chief Executive Office shall specifically review the paragraphs indicating embezzlement, loss of revenue, overpayments, wrong payments, etc., and initiate departmental action or criminal proceedings against defaulters.

(4) All efforts shall be made by the Chief Executive Officer and Vikas Adhikarifor for the recovery of losses in revenue pointed out in audit reports.

Write off 253. ( 1) All losses of money, irrecoverable revenues, loans, and advances will be written off by Panchayati Raj Institutions only with the prior approval of the State Government.

(2) In cases where any loss is caused through fraud, forgery, defalcation, or serious negligence of any servant, warranting disciplinary action, or through a flaw in rules and procedures requiring rectification or amendment, the Panchayat Samiti/Zila Parishad will first review such a case and take appropriate disciplinary action before recommending the case to the state government for approval of “Writ off.”

(3) A copy of all sanctions to “write off” losses will also be communicated to the Director, Local Fund Audit.

254. Forms. In the absence of forms, the corresponding forms of the state government may be used in the office of the Panchayati raj institution.

255. The state government’s power to issue instructions: “The state government may issue such instructions as may be necessary from time to time for the proper observance of these rules.”

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