1. The document outlines the accounting system and procedures for India Post, including roles and responsibilities, cash accounting processes, and specific instructions on handling items like fraud cases, financial assistance, and premium product revenues. 2. It describes the flow of accounting from branch post offices to head post offices and accounting offices, and the preparation and consolidation of various summaries. 3. Issues noted include long outstanding debit and credit suspense items related to fraud cases, lack of certificates for commission schedules, and misclassifications in revenue and expenditure. Actions required by various parties are highlighted.

1. ZONAL TRAINING CENTRE ,PAO, NAGPUR POSTAL ACCOUNTING

2. VISION STATEMENT OF DEPARTMENT OF POST “ India Post is a socially committed, technology driven, professionally managed & forward looking Organisation.” Mission guidelines of Department of Post are : • Total dedication to understanding and fulfilling customer needs. • Total devotion to providing efficient and reliable service which the customers consider to be value for money. • Total commitment to providing challenging and rewarding career for every employees; • Total recognition of the responsibilities as a part of the social, industrial and commercial life of the country; • Total enthusiasm to be forward looking and innovative in all areas. { Source Out-come Budget DOP – 2006-07

3. ORGANISATION AND CONTROL 1.The Secretary, Department of Posts, Ministry of Communication, is the Chief Accounting Authority. He is responsible for Compilation and Consolidation of monthly and annual accounts of the Department. 2. Member (finance) will advise the Chief Accounting Authority in the Accounts and finance matters of the Department of Posts. 3. Deputy Director General –PA &F is the professional functionary of the Postal Service Board in the Postal Accounts matters. 4. Deputy Director/Director/General Manager of the Circle Postal Accounts office will assist and advise the Chief PMG/Postmasters General in all matters connected with Accounts and Finance.

4. ACCOUNTING SYSTEM OF POST OFFICES There are 3 types of Post Offices. 1. Head Post Office 2. Sub Post Offices 3. Branch Post Offices Head Post Office is the central office of accounts for itself and a number of sub and branch post offices attached to it. The monetary transactions of suband branch offices under the accounts jurisdiction of a head office are incorporated in the accounts of Head Office. .

5. 1) Branch Post Office - Accounts Office to B.O is - B.O bag is also sent by accounts office Placed in account with B.O -HO or SO Called- Accounts Office - It must contain BO slip - Documents & Cash sent to BO is incorporated in BO slip. BO submits monetary transactions To Accounts office by means of BO daily Account through BO bag. BO account maintained by BO is The record of monetary transactions At BO under various account items. In accounts offices, BO daily accounts are Consolidated in BO summary

6. 2) Sub Post Offices 1. It is subordinate to and in account with HO 2. SO sends SO daily a/cs to HO through Account bag 3. HO sends SO slips to SO through account bag. SO HO Receives – SO slips 1. SO daily A/c s Maintains – SO A/c SO summary It includes transactions 2. HO summary for HOs transactions Of BO also in a/w SO 3. BO summary of BOs directly in a/c with HO So daily accounts are prepared w / r to SO account & sent to HO daily by SO Consolidation of all 3 through Accounts bag. summaries In HO cash book.

7. B.O. to Account Office & Vice versa Branch Post Office Sub Post Office Head Post Office Account Office It may be placed in Account with SO or HO Submits monetary transactions Receive BO daily A/c to Account by means of BO daily Account through BO bag. Maintaining BO Account B.O. summary Submits Account bag to BO Containing Documents & Cash sent to BO duly Incorporated in BO slip.

8. S.O. to HO & Vice versa Sub Post Offices Head Post Office 1)Subordinate to & in account Receives SO daily A/c from SO With HO Maintain: 2)Maintains – SO Account i) SO summary for SOs (Includes transactions of BO also) ii) BO summary for BOs Prepares SO daily Account w/r to iii) HO summary for HOs transaction S.O Account. iv) Consolidation of all 3 above 3) Submits monetary transactions summaries in HO Cash book. to HO through Account bag. Submits: i) Documents / Cash to SOs through Account bag containing SO slips.

9. FLOW CHART OF ACCOUNTING SYSTEM OF POST OFFICE ACCOUNTS B.O.SUMMARY S.O.SUMMARY H.O.SUMMARY H.O.Cash Book Cash Account (ACG -5) Receipts Payments Wanting Schedules / Vouchers / Full Details Credit Suspense Debit Suspense DAOA Credit Debit DAOA i) Recovery against Loss / Fraud / Theft / Credited to UCR. ii) Recovery against Misappropriation cases Iii) MO to PM from welfare section RO / CO i) Loss / Fraud / Theft ii) Misappropriation cases SB / TD/ RD. On issue of restoration sanction the amount to be charged to UCP. iii) Financial Asst. as immediate death relief PAIRING Excess Credit Excess Debit To be refunded to claimant or saving to Govt. (Profit) Loss to be written off

10. All realization of departmental revenue and all revenue expenditure of the Detp. And recorded in a series of Abstracts (Each bearing one or more capital index letter) as shown below under the respective Major Heads. RECEIPTS Major Head - 1201 - Postal Receipts Major Head - 7610 - Loans & Advances (Recoveries) EXPENDITURE Major Head - 3201 - Postal Services 01 - General Administration 02 - Operations 03 - Agency Services 04 - Audit and Accounts 05 - Engineering 06 - Amenities to staff 07 - Pension 08 - Stationary and printing 09 - Other Expenses. Major Head - 2071 - Telecom Pension Major Head - 7610 - Loans & Advances Major Head - 5201 - Capital Outlay

11. Function of PA Section : Cash Account is prepared by the Head Postmaster and submitted to DA(P) on 1st of each month along with supporting schedules and vouchers. The Postmaster should ensure that Cash Account figures are agreed with the schedule figures before submission of Cash Account to DA(P). On receipt of Cash Account at PAO, it has to be ensured that the Cash Account figures are agreed with schedules figures/vouchers. If it is agreed the amount is booked to proper head in classified abstract. In case of variations and non receipt of supporting schedules/vouchers the amount will remain under Debit or Credit suspense till the difference are reconciled by the Postmaster/wanting schedules/vouchers are received.

12. DAOA :- It is observed that the amount of fraud/misappropriation cases under DAOA is still lying unsettled since last 10 to 15 years in most of the PAOs. A list of outstanding items is required to be sent in each half year after closing AR suspense registers to all PMs with a copy to SSPO’s. As seen from the flow chart, the pairing work of debit i.e UCP items and credit i.e. UCR items has to be done case wise at PAO. But pairing work can not be done properly even though amount of loss is recovered and credited to UCR for want of full details and case marks of Divisional Office/Ro Office which resulted in increasing credit suspense and also non reducing the balance under DAOA. Action (SSPO’s office Fraud Branch) :- Monthly statement of outstanding Fraud / misappropriation cases is sent by all SSPO’s /SPO’s to RO/CO Office. If the list of outstanding DAOA item is verified with reference to present status of the case and outstanding amount against each case and replies given promptly to PAO showing the case mark & full details it is expected that more than 50% items can be settled easily.

13. Action (By Post Master) :- The amount of Loss/Fraud/misappropriation cases charged to UCP is required to be noted in R/R register in form ACG-60 at HPO and amount recovered against them from month to month is also required to be noted in R/R as per Rule 88 of FHB Vol.-I. Outstanding balance on 31st March should be carried forward in next year till the final settlement of the case. All Post Masters are supposed to ensure that this register is maintained properly and up to dated in each month. If register is up to date, item wise report can be prepared easily and outstanding items settled promptly.

14. 1) Financial Assistance in cases of death of Postal Employees / GDS : As per Date. letter No.2-1/01-WL/Sports dated 26-4-2002 financial assistance of Rs7000/- ( seven thousand ) is payable as immediate death relief and charged to UCP On receipt of money order from Welfare Section of RO/CO, the amount is credited to UCR. But it is observed that the number of items involving amounts of Lakhs of rupeesranging from 3 to 5 years are still lying unadjusted under DAOA as money orders are not issued by Welfare Section RO/CO till this date for want sufficient funds. Regionwise outstanding list is to be sent for follow up action ant settle the items on priority basis. Circle Office may also be requested to procure sufficient funds and arrange to issue MOs to adjust the old outstanding item on priority basis.

15. 2) A.A.Commission schedules & vouchers : As per Directorate letter No.14.2/2004/PA(Tech.II)/764-811 dated 14/9/2007, it has been decided by the competent authority that as per SB DG of Directorate vide letter NO. 107-16/97-SBdated 13/3/2000, the necessary check has been entrusted already to the SBCO only, hence there is no relevancy to forward the paid vouchers of commission to PAO. Only a certificate on this account by the concerned DPS may be required. The concerned DPS will certify that the vouchers have been received in SBCO, necessary checks have been carried out and kept in the safe custody. HPOs will keep the vouchers in PO itself till the preservation period is over. It is observed that the required certificate is wanting in respect all the Head Post Offices from Oct.2007 onwards. All PMs will follow the revised procedure and furnish required certificate duly signed by the DPS on priority basis

16. Misclassificaction :- While compiling the Cash Accounts, instances have come to notice that there are lot of misclassifications in Revenue as well as expenditure segment. Sometimes, due to error in Cash Balance Report or due to non submission of Schedules relating to stamps received from C.S.D, huge amount goes into minus, which does not reflect true picture of revenue segment. Such type of cases are required to be attended promptly and irregularities be avoided.

17. ACCOUNTING PROCEDURE FOR PREMIUM PRODUCT SERVICES The revenue realized through various premium products will be booked under the heads of accounts as stated below :- Sl.No. Comp.Code Name of the Product Head of Account 1 51 SPEED POST 1201-00-101-03-01-01 2 52 BUSINESS POST 1201-00-101-03-02-01 3 128 GREETING POST 1201-00-101-03-03-01 4 129 EXPRESS PARCEL POST 1201-00-101-03-04-01 5 152 RETAIL POST 1201-00-101-03-06-01 6 175 DIRECT POST 1201-00-101-03-07-01 7 138 E-POST 1201-00-101-06-01-01 8 72 SALE OF P1 PASSPORTAPPL. FORMS 1201-00-106-01-00-01 9 131 MEDIA POST 1201-00-800-01-01-01 10 191 LOGISTICS POST 1201-00-800-01-07 11 E-PAYMENT 1201-00-800-02-25 12 PASSPORT APPLICATIONFORMS 1201-00-800-02-300 13 149 COMMISSION ON OIC 1201-200-02-07-01 14 747 OIC PREMIUM 8446-101-73 15 80 CABLE TV FEE 1201-200-02-07-01

18. 1) Not mandatory to quote Head of account by HO. 2) Postmaster should furnish premium product wise figure in the receipt side of Cash Account & also submit schedule thereof. 3) Under no account the revenue realized for the premium products should be brought under “UCR or Postage realized in cash” 4) Required registers and annexure –I and annexure – II should be prepared properly by each SO and HO. 5) The amount shown in annexure –II should agree with the figures shown in Cash Account. PAYMENTS The expenditure for the premium product services will be booked as under. Name of the Product Account Head Logistics Post 3201-02-103-07 Incentive for OIC 3201-02-101-01-01 Incentive for promotion of mutual fund Incentive paid for mutual fund business All other premium product services 3201-02-101-04 Rebate to Speed Post customers Deduct revenue on speed post services

19. BUSINESS DEVELOPMENT (I) As per Date. Letter No.22-14/Accounting Procedure/2004-05 Dtd 11-8- 04, operational procedure for accounting of Receipts under Various premium services has been circulated which stipulates that:- The instructions dated 17th February,1999 stipulates that :- a) The details of receipts received in cash for premium services and ordinary services should be furnished separately through the monthly cash account as against the existing practice of furnishing one composite entry as postage Realized in cash (PRC). b) The details of revenue realized through sale of postal / service stamps and franking of stamps on various premium services, the details of refund of charges and also the rebate of commission allowed for various premium services should be assessed separately and furnished in a schedule namely the

20. SCHEDULE OF REVENUE RECEIPTS OF VARIOUS PREMIUM SERVICES (in the proforma given in Annexure II there to) and sent to the Postal Accounts Office along with the monthly Cash Account. The basis for preparation of the above said Schedule shall be the ‘ REGISTER OF PREMIUM PRODUCTS RECEIPTS ’, which shall be maintained in the Performa given in Annexure I to the above said letter, in all the post offices / other offices dealing with premium product Services.

21. (II) Schedule of Revenue Receipts of various Premium Services in form of Annexure II (Copy enclosed) has to be sent alongwith monthly Cash Account to Postal Account in every month. (III) As per para 6.2 of Dte. Letter No. 22.14/Accounting Procedure /2004-058 Dtd. 19-5-2005, separate Schedule should be prepared for each premium product in respect of cash collections in support of the amount exhibited in the Cash Account.Some important para’s of Dte.’s instructions dated 19-05-2005 ibid are reproduced below for information and strict compliance thereof by Field Units

22. Para 3.5.0 Register of Premium Product Receipts Para 3.5.1 The Register of premium product receipts should be maintained by each Booking Office (Head Post Office, Sub Post Offices, RMS Offices, Business Post Centre, Express Parcel Post Centers etc.) dealing with Speed Post , Business Post Express Parcel Post, Bill Mail Service etc. separately for each product. The various columns in the Register should be filled daily with the aid of information furnished by counter assistants / assistants dealing with receipts of payments/ shift reports.

23. Para 3.5.2 In order to classify the postage realized in cash for each of the product separately , it is necessary that break up figure for the daily totals of shift reports in respect of Speed post ,Express Parcel Post, Business Post etc. should be shown separately in the hand to hand book between the counter clerk and the Treasurer and on that basis the product vise receipt should be separately shown on the Treasurers cash book, H.O. Summary, H.O. Cash Book and finally in the monthly Cash Accounts submitted to the Postal Accounts Office. Similarly this receipts should be shown separately by the Sub Postmasters in their S.O. Accounts and S.O. daily Accounts submitted to the Head Post Office for posting in the S.O. summary.

24. Para 5.1 Submission of Schedules of Revenue receipts of various Premium Services. The schedules of revenue receipts should be submitted monthly to Circle Postal Accounts Offices. The following guidelines should be adhered to. Para 6.1 APM Accounts will ensure that Postage realized in Cash against each individual product is furnished separately in the H.O. Cash Book and the Monthly Cash Book. This should tally with the amounts shown against each product in’ Cash column ‘ of the schedule of Revenue Receipts of various premium services in the Cash Book and Monthly Cash Account .

25. Para 6.3 In no case, The amount collected in cash an account of premium products should be included in UCR Schedules. BNPL Booking and Accounting As per guidelines under Chapter-IV of DG’s Instructions dated 11.8.2004 (ibid), the actual revenue realized (after deducting the rebate allowed ) from BNPL Booking should be furnished in the BPR as well as Monthly Cash Account. The collection on BNPL pertaining to Speed Post, Business Post, Express Parcel Post should be shown separately against each column in Annexure – II and also in supporting schedules. But his is not strictly followed.

26. AGENCY FUNCTIONS COMMISSION REVENUE SB Accounts : Yearly Rate Rs.123.33 per live account NSC / KVP Certificates Rs. 34.80 per issue / discharge IVP Certificates Rs. 9.24 per discharge PLI 7 % of premium collected RPLI 10 % of Premium Collected Railway / Telecom Pension Rs.80 Per disbursement * EPF Pension Rs. 53.60 Per payment IMTS Revenue Rs.260 per transaction Revenue Stamps 10 % of amount sold Passport Forms No. of application forms sent x Rs. 100 WFA (Widow Financial Assistance) (related to Gujarat Circle only ) 5 % of amount disbursed

27. Railway / Telecom Pension Rs.80 Per disbursement * As per DG Post Letter No. -2-26/2000/CTG (P) dated 13/04/2009 the rates are increased as follows for Railway and Telecom Pension. Year Rate 2005-06 Rs.68/- Per disbursement 2006-07 Rs.72/- Per disbursement 2007-08 Rs.77/- Per disbursement 2008-09 Rs.80/- Per disbursement

28. SCHEDULE OF REVENUE RECEIPTS OF VARIOUS PREMIUM SERVICES (TO BE ACCOMPANIED WITH MONTHLY CASH ACCOUNTS ) Revenue realised through Deduct refund for No Name of Service Cash Rs Franking Machines Rs Postage Stamps Rs Service Stamps Rs. BNPL before rebate Total Rs Less rebate allowed Rs Loss of Articles Rs. Delay in delivery Rs. Penaulty levied Net Amount (8-9-10- 11 + 12 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) 1 Speed Post 2 SPMO Charge 3 SP Passport application 4 Business Post 5 Express Post 6 Greeting Post 7 Media Post 8 Retail Post 9 E Post 10 E bill Post 11 Bill Mail Service