17 ddo power by ch. m. ikram

DRAWING & DISBURSING OFFICERs
FUNCTIONs, ROLE & RESPONSIBILITIEs
IN THE PUBLIC SECTOR
FINANCIAL MANAGEMENT
BY
Ch. Muhammad ikram
Ex- Additional Chief instructor (Finance)
Management & Professional Development Department
Ikram.0094069@mail.com 3

SEQUENCE OF PRESENTATION
1
INTRODUCTION
2
WHAT IS MEANT BY DRAWING & DISBURSING OFFICER
3
FINANCIAL TRANSACTIONS & THE D.D.O.
4
D.D.Os ROLE IN FINANCIAL MATTERS.
5
D.D.Os ROLE IN PROCUREMENT MATTERS.
6
D.D.Os ROLE IN STOCK & STORE.
7
D.D.Os ROLE IN BUDGET MATTERS.

SEQUENCE OF PRESENTATION
8
D.D.Os ROLE IN AUDIT MATTERS
9
D.D.Os ROLE IN INTERNAL CONTROL.
10
D.D.Os ROLE IN INTERNAL AUDIT.
11
BOOKs TO BE STUDIED BY THE D.D.Os

INTRODUCTION
The Drawing & Disbursing Officer
(DDO) is an Officer who Plays a Pivotal Role in the
existing Public Sector Financial Management.

INTRODUCTION
Normally the Head of the Office is the
Drawing & Disbursing officer irrespective of
the Post and Scale of Pay.

WHAT DOES THE FINANCIAL RULES
PROVIDES FOR THE D.D.O
The Head of Office or any Other Gazetted Officer
Designated as DDO by a Deptt of the Govt. , a Head of
Department or an Administrator [vide rule 2 (xii) of GFRs]
Functions as the DDO for Drawing Bills and Making
Payments on behalf of the Govt and is D.D.O.
8

DRAWING & DISBURSING OFFICER
Disbursing Officer in respect of a Major, Minor
or a Detailed Object under a Function, Relating to
Expenditure, is the Officer Designated as Such by the
Administrative Department with the Prior Approval of the
Finance Department, …………………………….

……………………………. and Mentioned in Column (3) of
Part II of Appendix ‘D’ of the Budget Manual against
such Major, Minor or Detailed Object, as the case may
be, who actually incurs Expenditure under such Major,
Minor, or Detailed Object, in respect of the Office, or
offices, of which he is the Disbursing Officer.

4
The Term Head of Office Implies Executive
Responsibility in the Field of Collection of
Revenues & Rendition of Services or
Construction of Projects.
5
The Head of Office is Declared as such
under Rule 3 of GFR Vol. I and has the Power
of D.D.O under rule 141 of the Treasury Rules. 11

The Head of Office, however, may
Delegate this Task to a Subordinate Officer of his
Office who would Perform the Duties as (DDO) in
Addition to his Normal Duties.

THE DDOs & THE BASIC FUNCTIONS
The Officer who Prepares Estimates of
income / Expenditure and Actually incurs Expenditure in
respect of the Office of which he is the Drawing and
Disbursing Officer as appointed by the respective Head of
Office under his Administrative Control.

THE DDOs & THE BASIC FUNCTIONS
The Head of the Office or any Other Officer
Authorized by the Head of Office under whose Signatures
the Salaries/wages of the Employees, Contingent and Other
Claims of Operating Expenditures are Submitted for Drawal
of Payments from the Public Account and Disburse to the
Employees/Vendors / Contractors is the DDO of that Office.

ROLE & RESPONSIBILITIES OF DDO’s
To Ensure that all Financial Rules are
Observed before Submission of Claims and only that
amount is Drawn which is required for immediate
Disbursement or has already been Paid from the
Permanent Advance.

To See that the Expenditure is within
Sanctioned Budget. If the Expenditure is likely to
Exceed he Should take Prompt Steps to Obtain
Additional Appropriation (Re-Appropriation of
Funds or Supplementary Grant)

To Ensure that Principles of
Financial Propriety are Observed in Letter and
Spirit.

To Carry out Reconciliation with the
Office of the Accountant General Punjab or the
conceerned District Accounts Office well in time and
Promptly identify and Settle Discrepancies.

Cash Book is Closed and Completed
on Daily Basis and Requisite Certificates are
Recorded therein.

The DDO is also Responsible for Observing
that the Rules & Procedure Regarding Preparation
of Claims / Vouchers are Carefully Observed.

Regarding Salaries / wages, Personal
Claims e.g T.A Advance, Pension Cases etc. It is
his duty to See that:……………………………

The Number of Posts for which
Salaries are Being Drawn (working Strength)
is Not More than the Sanctioned Strength.

The Service Books of the Employees
are updated, Pay Fixation is done Accurately,
increments are Complete and Payments are made
according to Pay Fixed in the Service Books.

The Deductions and Recoveries
from the Salaries are Made Accurately from
the Manual Bills and Computerized Pay Rolls
(Non Gazetted Employees).

Pay, Travelling Allowance of the Staff,
the Acquittance Rolls or Office Copies of the
Bills are duly Signed by the Payee.

Payment of Arrears of Pay and
Allowances etc. is Recorded In the Service
Book of the Employee.

The Payments are Made to the
Person(s) Entitled to Receive them and that
Undisbursed Funds are either Repaid into the
Treasury or……………….

………………. Adjusted by Short Drawl in the
Next Bill(s) and are Not Retained for a Period
longer than is Absolutely Necessary or is
Permissible under the Rules.

As Regards Payments to
Private Parties D.D.O Should Obtain an
Acknowledgement.

The Detailed instructions Relating to:
Form, Completion, Examination and Custody
of sub-vouchers and Acquaintance Rolls.
Defacement of Sub-vouchers Should be
Closely Observed.

When a Cheque is Drawn by an Officer in Favor
of Self or in Order to Replenish the Cash Chest, amount
Should at Once be Entered as a Receipt this Entry Must not
be Delayed Until the Money has been Received after the
Encashment of the Cheque at the Treasury.

As a General Rule every Payment
Must be Supported by a Voucher Setting Forth Full
and Clear Particulars of the Claim.

Every Voucher Must be a Pay Order,
Signed or initialed and dated by the Disbursing
Officer. This Order Should Specify the amount
Payable both in words and Figures.

A Certified Copy Marked (Duplicate) of a
Receipted Voucher may be Retained by the
Disbursing Officer.

In Case of Encashment of Cheques
of heavy amount the DDO Should bring the Cash
from the Bank himself adopting all Possible
Precautionary Measures instead of Giving
Authority to any other employee.

As far as Possible Direct Payment in
the Name of Vendor / Contractor Should
be Arranged.

All Receipts, Disbursements and Charges
of Whatever Nature Connected with the Public
Service Drawn in Name of DDO Must be Shown in
the Cash Book.

Sufficient Details Should be Given in the
Column “Particular” to Admit of the Main Points of
each Transaction being Readily Ascertained without
referring to the Detailed Vouchers.

Prepare Realistic and Sound
Estimates of Expenditure in accordance with the
Budget Guidelines for the Offices under his
jurisdiction

D.D.O Should Not at his Own Authority
Authorize any Payment in Excess of the Funds
Placed at his Disposal.

Every D.D.O Shall Maintain an
Appropriation Register which Shall include the
Commitments against the Appropriation and
Register of Actual Disbursements.

The D.D.O Shall indicate Complete
Accounts Classification in respect of the Proposed
Expenditure and the Balance Appropriation
available in the Detailed Object as Per PIFRA
Classification.

In Case D.D.O is also Performing as
Collecting Officer for his Office, the Reconciliation
of Receipt Figures with the Concerned accounts on
Monthly Basis by due dates.

Receipt and Payment of Public Money
Principles Regarding Receipt of Money
i.
All the Money Received as due to the
Government or for Deposit in the Custody of the
Government Should be Brought to an Account and
Deposited in the Bank without Delay.

Receipt and Payment of Public Money
Principles Regarding Receipt of Money
i.
As a General Rule Money so Received
Should Not be Appropriated to Meet the
Departmental Expenditure Except Some
Departments which have Specially been Authorized
in this Regard to Appropriate Specific Receipts
Subject to Certain Conditions.

WITHDRAWLS OF MONEY
FROM THE PUBLIC ACCOUNTS
No Authority Can incur Expenditure or
Enter into any Liability involving Expenditure
from the Public Account Until: ……………..

WITHDRAWLS OF MONEY
The Expenditure has been Sanctioned
by the Competent Authority.
Expenditure has been Provided for in
the Authorized Grants in the Appropriation
for the year.

WITHDRAWLS OF MONEY
No Money Can be Removed from the
Public Account for investment or Deposit
Somewhere without the Prior Approval of the
Finance Department

QUALITY OF THE DDOs
The Meticulous Study of the important
Functions to be Performed by the DDOs makes it
clear that “Perfact” knowledge of all Financial
Rules / Regulations and Procedure is
indispensible, ………………………….

QUALITY OF THE DDOs
……………Not only for the Discharge of such
Responsibilities in a judicious Manner, but also for
the Maintenance of Financial Discipline in the
Government institutions.

AUTHORITY OF THE D.D.O
1
Billions of Rupees Enter into the Govt. Kitty by Way of
Taxes & Borrowings & Billions are Spent on Public Services
& Projects.
2
The Key Player in Spending is the DDO.
3
No Money Can be Drawn from Public Exchequer,
except over his Signatures.
4
It is the DDO and only the DDO who is Authorized to
Operate the Govt. Purse.
51

FINANCIAL POWERS
OF THE

DELEGATION OF
FINANCIAL POWERS RULES
NOTIFICATION NO.SOR (LG)38-9/2017 dt.19.04.17
The following officers shall be considered
as Officer in Category-I:
1
District Education Officer (BS-19) / Principal (BS-19
& above) of high or higher Secondary School /
Comprehensive School, Model High School / Incharge of
independent offices / School institutions in BS-19 and
above.

DELEGATION OF
as Officer in Category-II
Deputy District Education Officer (BS-18) / District Education
Officer (Special Education) (BS-18) / Senior Headmaster (BS-18) of high
school / Head of Special Education Institutions (BS-18) / District
Education Officer (Literacy & Non-Formal Basic Education (BS-18) /
Officer incharge of independent offices in BS-18 and above not
mentioned as Officers in Category – 1. 54

DELEGATION OF
as Officer in Category-III
District Education Officer (Literacy &
Non- Formal Basic Education (BS – 17 ) /
Drawing & Disbursing Officer other than those
mentioned at Sr. # 1 & Sr. # II.
55

DELEGATION OF
Sr.
No.
NATURE OF POWERS TO WHOM
DELEGATED
EXTENT
2
To sanction expenditure against the
detailed objects in the budget estimates
other than Employees Related
Expenditure & the Expenditure
Specifically mentioned under the
Schedule.
Officers in
Category - III
Not
exceeding
Rs.1.500
million at a
time.
56

DELEGATION OF
Sr.
No.
DELEGATED
EXTENT
5
Powers of Administrative Approval
(for M&R of residential and non-
residential Buildings) chargeable to
current years budget.
Officers in
Category - III
Not
exceeding
Rs.0. 200
million at a
time.
57

DELEGATION OF
Sr.
No.
DELEGATED
EXTENT
6
Powers to declare vehicles /
machinery / equipment / spares /
stores / stocks etc. surplus or un-
serviceable or condemnd.
Officers in
Category - III
Up to
Rs.0.100
million at a
time.
58

DELEGATION OF
Sr.
No.
DELEGATED
EXTENT
10
Engagement of part time staff chargeable
to contingencies provided the rates are
approved by the competent authority and
not exceeding the rates of wages of the
correspondence ranked employees.
Officers in
Category - III
Full
Powers
59

RESPONSIBILITIES OF THE
HEAD OF THE OFFICES AS WELL AS OF THE DDO
(i)
Ensuring Financial Control.
(ii)
Ensuring Observance of all relevant financial Rules &
Regulation.
(iii)
Ensuring that the total Expenditure is kept within the
limits of Authorized Appropriation.
(iv)
Ensuring that the Funds allotted are Spent on the
Activities for which the money was provided.
(Rule 4(3) of DGBR-2003)
60

RESPONSIBILITIES OF THE
HEAD OF THE OFFICES AS WELL AS OF THE DDO
(v)
Guarding Against Waste and Loss of Public Money.
(vi)
Ensuring that Satisfactory Arrangement exists for
Systematic and proper Maintenance of Office Accounts
& Other Ancillary Record.
(vii)
Ensuring that Auditors are Afforded all Reasonable
Facilities to Perform their Duties.
(viii)
Ensuring that No Information / Books / Documents are
With-held from the scrutiny of Auditors. (Rule 4(3) of DGBR-2003)
61

STANDARDs
OF FINANCIAL PROPRIETY

STANDARD OF FINANCIAL PROPRIETY
GFR Vol. I Lays Down that the Officer Incurring or
Authorizing Expenditure from Public Funds Should be
Guided by High Standard of Financial Propriety.
Among the Principles on which the Emphasis is
Generally Laid are as Under: -
63

1
Every Public Servant Should Exercise
the Same Vigilance in respect of Expenditure
from Public Money, as a Person of Ordinary
Prudence Would Exercise in R/O Expenditure
from his Own Money.
64

2
The Expenditure Should not be Prima Facie
More than the Occasion Demands. (GFR-10)
No authority should Pass Any Order, which will
be Directly or Indirectly to his Own Benefits.
65

4
Public Money should not be Utilized for
the Benefit of a Particular Person or Section
of the Community Unless: ……………………
66

a
The expenditure involved is insignificant; or
b
A claim for the amount can be enforced in a
Court of Law.
c
The Expenditure is in Pursuance of
Recognized Policy or Custom. 67

The Amount of Allowances Granted
to Meet Expenditure of a Particular Type Should be
so Regulated that the Allowances are not, on the
Whole, a Source of Profit to the Recipient.
68

PROCUREMENT MATTERS
AND THE

& THE PROCUREMENT MATTERS
1
Initiate Procurement Planning on
commencement of the Financial Year.
2
Ensure Observance of Procurement Rules
and in particular the following:
70

PRINCIPLES OF PROCUREMENTS
Procuring Agencies While Engaging in
Procurements, shall ensure that the Procurements
are Conducted in a Fair and Transparent Manner,
the Object of Procurement bring Value for Money
to the Procuring Agency and Procurement Process
is Efficient and Economical.
71

Value for Money
It means best returns for each rupee spent in
terms of Quality , Timeliness , Reliability , after
sales service , Up-grade ability , Price , Source, and
the combination of Whole-life Cost and Quality to
meet the procuring agency’s requirements.
72

iii
Ensure adoption of an appropriate
Procedure & Method of Procurement & Selection of
Contractors as Provided in rule 38 of the Procurement
Rules and advertise accordingly.
Iv
Evaluation of Technical / Financial Proposals
and Process Finalization of Selection of Contractors.
73

V
Obtaining Approval of the Lowest
Evaluated Bidder.
vi
Entering into Contract with the contractor
and issuance of supply / work order.
74

Vi
Receipt of Consignment within the Stipulated
Time. Scrutiny of Consignment in terms of Quality and
Quantity.
vii
Entry into the Relevant Stock / Property registers
and release of Payment. Close of contract.
viii
Release of security after the maintenance period
if any.
75

PROCEDURES FOR SELECTION
OF CONTRACTORS
Single stage one envelope bidding
procedure shall ordinarily be the main open
competitive bidding procedure used for the
procurement of works and standard goods.
(38.1)
76

SINGLE STAGE TWO ENVELOPES
BIDDING PROCEDURE
a
Used for procurement of such goods where the bids are
to be evaluated on Technical and Financial grounds and
the procedure shall be:
i
The bid shall be a Single Package consisting of two
separate envelopes, containing separately the “Financial”
and the “Technical” proposals;
ii
The proposal shall be marked as “Financial proposal”
and “Technical Proposal” 77

SINGLE STAGE TWO ENVELOPES
BIDDING PROCEDURE
iii
In the first instance, the “Technical Proposal” shall be
opened and the envelope marked as “Financial Proposal”
shall be retained unopened in the custody of the P.A.
iv
The P.A shall evaluate the Technical Proposal without
reference to the price and shall reject any proposal which
does not conform to the specified requirements;
ikram_0094069@yahoo.com
78

MAINTENANCE OF
PROPERTY REGISTER /
STOCK REGISTER

& THE ENTRIES IN THE PROPERTY / STOCK REGISTERS
(i)
Checking of Quality & Quantity before Proper
Receipt of Consignment as Per Work / Supply order.
(ii)
Acceptance or Rejection of Consignment in the
light of quality already described in the Work Order.
(iii)
Entries in the Relevant PROPERTY REGISTER /
STOCK REGISTER if the Consignment is in Order.
80

& THE ENTRIES IN THE PROPERTY / STOCK REGISTERS
(iv)
Physical Verification of Stock & Stores as per
Property Rules.
(v)
Issuance of Stock & Stores as per orders for
Utilization in Public Interest.
Auction of un-serviceable articles of stores as
per rules / Government instructions.
81

MAINTENANCE OF REGISTERS
Sr.
No.
Name of the Register Name Code
of the Forms
(1)
Register of Immovable Property. P-I
(2)
Register of Nazul Property. P-II
(3)
Rent Demand & Collection Register. P-III
(4)
Arrears Demand & Collection Register. P-IV
(5)
Register of Public Roads & Streets. P-V
(6)
Register of Encroachment. P-VI

Sr.
No.
of the Forms
(7)
Register of Un-authorized occupants of Land
or Buildings.
P-VII
(8)
Building Maintenance Register. P-VIII
(9)
Roads and Street maintenance Register. P-IX
(10)
Agriculture Land Register. P-X
(11)
Register of Road Side Trees. P-XI
(12)
Register of trees. P-XII

Sr.
No.
of the Forms
(13)
Register of fruit bearing trees.
P-XIII
(14)
Register of movable property.
P-XIV
(15)
Register of furniture.
P-XV
(16)
Register of vehicles.
P-XVI
(17)
Sale of goods Register.
P-XVII
(18)
Distraint Register. (qurk)
P-XVIII

Sr.
No.
of the
Forms
(19)
Register, of light points and lamp post. P-XVIII
(20)
Register, of water stand post. P-XVIII
(21)
Stock Register for expendable stores. P-XVIII
(22)
Library Register containing the detail of
books.
P-XVIII
(23)
Library books issue Register. P-XVIII
(24)
Newspaper Register. P-XVIII

Sr.
No.
Name of the Register
Name Code
of the
Forms
(25)
Postage stamp Register. P-XXV
(26)
Purchase of goods Register. P-XXVI
(27)
Register of all kinds of Machinery. P-XXVII
(28)
Register of Animal. P-XXVIII
(29)
Register of parks and play grounds. P-XXIX
(30)
Register of Community Centre / Public
Places.
P-XXX

REGISTER OF IMMOVABLE PROPERTY
Sr.
No. Description
and
situation of
Property
Area Date & Mode
of acquisition
Price
Paid
Additions
Made
Purpose
for
which
used
Present
valuation
Initials of
Manager
or
Officer
incharge
1
2
3
4
5
6

REGISTER OF MOVABLE PROPERTY
Sr.
No. Description
of Property
Number Date of
Purchase
Price Manner of
use
Disposal Date of
Disposal
Price
fetched
if sold
Remarks

STOCK REGISTER
FOR EXPENDABLE STORES
(Stationery Papers)
Date Stock Price Voucher
No.
Date To whom
issued
Purpo
se for
which
issued
Initials
of the
official
receivi
ng the
stock
Date Balance Initials
of the
official
issuing
the
stock
01.07.18
13
Rims
Rs.7800/-
@Rs.600/-
per Rim
Balance
B/F
29.07.18
55
Rims
Rs.33000/-
@Rs.600/-
per Rim
519/
7/18
Total
68
Rims
Rs.40800/-
@Rs.600/-
per Rim
--
13.08.18 (7) Rims issued to
S.O (G )
Official
Use
Sd/- 13.08.18 61
Rims
Issued
under the
orders of
A.S (Admn)
Sd/- Store
Keeper.

POSTAGE STAMP REGISTER
Date Denomination
of Stamps
No. Value Date Manner
of Use
Initials of
the
Official
Date Balance Remarks

REGISTER OF VEHICLES
Repairs Movement
Description
of the
Vehicle
Date of
Purchase
Price Use to
which it
is put.
Official
responsible
for Custody
Date Charges Date Distance
Covered

PREPARATION OF BUDGET
AND THE

& THE PREPARATION OF BUDGET ESTIMATES
(i)
Observance of Budget Guidelines Provided in B.C.L.
(ii)
The Budget Current Expenditure Should be Prepared on
BDC-1 to 7. (Explanatory Note)
(iii)
Provision for Expenditure under appropriate Function /
Object as per PIFRA chart of classification.
(iv)
Foreseeable Expenditure be included & Restricted to
Absolute Minimum.
93

(v)
Develop the Most Realistic & Sound Estimates.
(vi)
Provide only for such Expenditure as are to be
Actually Paid During N.F.Y.
(vii)
No Budget Provision for Posts for Which Decided to
Kept Un-Filled. (Rule 19 & 20 of DGBR-2003)
94

Rule
7
(b)
Preparation of estimates of expenditure and their
timely submission to the Chief Executive Officer;
Rule
7
(b)
incurrence of expenditure strictly against the
allocation under-the relevant object code and in
accordance with the rules;

Rule
7
(b)
Maintaining Budget Control Register,
Evaluating the Expenditure under each Object
and Preparing Proposal for Re-Appropriation or
Supplementary Grant and Revised Estimates.

Rule
7
(d) Preparation-of Excess and Surrender Statements;
Rule
7
(e)
Preparation of Monthly and Annual Statement of
Expenditure and Get them Reconciled with the
Accountant General, Punjab and District Accounts
Officer; and

Rule
7
(f)
Preparation of Statement of Liabilities, if any,
at the Beginning of each Financial year and
including the Same, by Carrying them Forward, in
the Liability Statement of the Next Financial year.

CONTROL OVER EXPENDITURE
AND THE

CONTROL OVER EXPENDITURE BY DDO
(i)
The DDO Shall be Responsible for the
Expenditure Actually Incurred Against the Funds
Allotted to him. Rule 65(2)
(ii)
The DDO may Maintain Registers as may be
required to Manage, Control & Monitor the
Budget. Rule 66(3)
100

(iii)
The DDO Shall not Authorize any
Payment in Excess of Funds Placed at his Disposal.
Rule 66(5)
(iv)
The DDO shall Provide Reconciled
Monthly Expenditure Statement to his Head of
Office. Rule 66(i)
101

STEPS REQUIRED IN CASE OF
LIKELIHOOD OF EXCESS EXPENDITURE
(I)
Ensure Strict Control Over the Affected Grant.
(ii)
Transfer Funds through Re-Appropriation if Saving
under any other Head is Available and the Competent
Authority Accord Approval.
(iii)
Efforts in view of Exigencies for Supplementary
Grant. 102

AS AN AUDITEE

ROLE OF THE DDO AS AUDITEE
(iii)
Should list the records needed by the auditors for
conducting audit.
(iv)
Review of last audit reports and need for settling
outstanding observation.
(v)
Give instructions to subordinate staff W / R to
arrangement of record for Audit and watch that they
comply with it.
104

INTERNAL CONTROL & THE DDO
(i)
Clear plan of organizational functions and
authority / responsibility.
(ii)
Segregation of duties for units / individuals.
(iii)
Procedures for authorization, operation &
recording.
(iv)
Personnel and staffing (Education, Training,
Experience).
(v)
Continuous supervision by responsible officers.
105

AS AN INTERNAL AUDITOR

AS INTERNAL AUDITOR
Internal Audit shall be an independent, objective
assurance and consulting activity, designed to add value
and improve the operations of the department, and shall
help the department to accomplish the objectives by
bringing a systematic and disciplined approach to evaluate
and improve the effectiveness of risk management,
control, and governance processes.
107

1
Esta Code
2
DDO Hand Book
3
PPRA /Procurement Rules -- 2014.
4
Budget Manual.
5
Financial Rules Volume I & II.
6
Delegation of Financial Powers Rules - 2016
7
Accounts Code Volume I, II, III & IV.
8
Audit Manual.
9
Service Rules.
10
Pension Rules.
11
G.P. Fund Rules.
12
Day to day Instructions issued by the Govt. on above subjects.
108

17 ddo power by ch. m. ikram

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