2. Balancing of Cash:
—Balancing of Cash Receiving Register:
+After receipt of total cash during the day the ‘Cash
Receiving Official’ shall (i) aggregate the amount after
the last entry in the ‘Public Fund Account’, (ii) write
down the total amount in words and figure under the
summation and ensure that it is okay and the figure
agrees with the computer generated supplementary
figure.
3. — Balancing of Cash Payment Register:
+Paying Cash shall accomplish the following
formalities:
a)Make date-wise entry of all payment Vouchers in
“PFA” in serial order.
b)Make sure that total amount of such payments of
the day agrees with the total amount shown in the
parallel computer generated supplementary.
c)Write down the total amount of cash paid during the
day both in words and figures in ‘PFA’ and
authenticate the same by full signature.
4. Writing and Checking of Cash Balance Book:
—After Balancing of (i) PFA by the respective Cash
Officials, Cash In-Charge shall prepare and sign the
Cash Balance Book and shall submit the same to the
Cash Officer, who, upon satisfaction about its accuracy
and genuineness shall authenticate the same by his /
her countersignature thereon.
5. Checking / Closing of Cash and Writing of Cash
Position Memo:
—At the end of day’s Cash transaction Cash In-charge
shall Count, Sort and Balance the remaining cash
(after receipt & payment) and shall prepare and sign
the Cash Position Memo. However, Cash Officer shall
check and confirm that the figures mentioned in the
Cash Position Memo agree with the total figures of (i)
PFA ii) Daily Affairs (cash in hand figure) and, upon
satisfaction, shall authenticate the Cash Position
Memo by his full signature / countersignature.
6. Safe Custody of Cash (after transaction) Over
Night:
—Cash balance of the counter at the end of a day
together with Cash in Safe (if any) shall be preserved
in the ‘Fire Proof Iron Safe’ of (Chest) Vault for Safe-
Triple-Custody until next reopening of the Vault. But
before storing cash in the Iron Safe, the Custodian
shall additionally ensure that entire cash i.e. Closing
Balance of the day as per Cash Position Book (Balance
Cash of Cash Counter and remaining Cash Iron Safe)
are accurate and correct.
7. Vault Register:
—Cash In-Charge shall Maintain Vault Register for
keeping record of Cash Movement to and from the
Iron Safe. Denominations of Cash-in Hand mentioned
in the Cash Balance Book must match with the
denominations recorded in the Vault Register at the
end of day’s transaction.
8. Cash-in-safe, Cash-on-Counter and Cash-in-
Tansit Limit:
—FY must handle cash within Cash-in-Safe, Cash-on-
Counter and Cash-in-Transit Limit duly approved by
Head Office. Excess cash over the approved limit shall
not be held in the FY at any time either on Counter or
in Iron Safe. However, the Cash In-charge, under due
record & acknowledgment in the relevant register,
shall immediately move the Excess Cash of the
counter, to the Strong Room during transaction hours.
9. Cash Enclosure:
—Access of unauthorized person(s), including officials
of other departments, to the Cash Enclosure of the FY,
is strictly prohibited. Only the officials working in the
Cash Department shall have access to the Cash
enclosure
10. Safety / Security of Strong Room
During Transaction Hours:
—Strong Room / Vault must be kept Closed / Locked
during transactions hours under Joint Control of two
key holders and both the Joint Controllers must be
present whenever the strong room is re-opened during
the Day / Office Hours. Cash In-charge must keep his /
her hand balance (exceeding counter limit) in a steel
box under lock & key in the strong room.
11. Maintaining Vault Limit:
—FY has to ensure the vault/cash in safe limit as set by
the Head Office time to time. Cash in excess of vault
has to be deposited immediately with cash feeding
branch.
Security Measure of Cash-in-Transit:
—FY shall ensure adequate and effective security
measures while carrying cash to and from link
branches of the Bank.
12. Surprise Verification of Cash:
—Head of Office shall make surprise verification by physical
counting of entire Cash-in-Safe at least once a month and shall
confirm its accuracy with the remarks “Entire Cash Checked and
Found Correct” on the particular page of Cash Position Book
under his / her signature.
Recording Denomination of Note(s) / Coin(s):
—Cash at Vault (In Hand, In Iron Safe / Vault and On Counter
is to be noted down denomination-wise in Cash Position Book
and that denomination must go with the denomination to be
recorded in the Vault Register at the end of transaction of the
day. Again, cash official shall record denominations of all the
cash received and paid daily on the back of each respective credit
and debit voucher.
13. Before receiving cash from depositors in Pay-in-Slip / Credit Voucher
the concerned cash official(s) shall:
Verify / check the (a) Title of Account, (b) A/C Number, (c) Amount in
Words and Figures, (d) Date, etc. written on Pay in Slip / Credit
Vouchers with the records of computer program and shall satisfy on
their correctness and genuineness.
Carefully check and Count the Currency Notes.
Write down denomination.
Affix Cash Received stamp.
Make entry of particulars of the Cash Received
Verify entries / Particulars of Pay-in-Slip / Credit Voucher with those of
the Cash Receiving Register.
Keep Cash in the Drawer of Cash Counter under lock and Key (within
Counter limit) during transaction hours.
14. While Paying Cash against debit instruments namely Cheques, Demand Drafts
(DD), Pay Order (PO), Pay Slip (PS), SDR, FDR, etc. and also against other
debit instruments as well as Cash Debit Vouchers, the following formalities
have to observed:
Verify Genuineness & Authenticity of the instrument, make posting, passing &
cancellation of the Cheques and, thereafter, count relevant cash and note down
denominations there against on reverse/ back side of respective instruments/
vouchers.
Obtain 2nd signature of payee/ recipients on the back of the instruments,
affixing stamp and cancellation of instruments.
Enter particulars of instruments/ Cheque in Cash payment register in serial
order and write down that serial number in a red circle to be made on the face
of the instruments.
And finally after completion of all above formalities the Cash official, upon
satisfaction, shall pay/ handover cash against the instrument/ cheque to the
payee/ Recipients.
However, paying cash official(s) shall hold all paid debit instrument(s) until
cash is closed and handed over to Cash-in-charge at the close of business.
16. PREAMBLE
The cash drill procedure lays down the procedure that will
apply to the management and accounting of the public
fund and other non-government accounts maintained in
the ordnance factories and offices under DGOF where cash
handling exists.
The procedure combines features of the original cash drill
procedure of 1947 and incorporates the provisions of the
General Financial Rules 2017, The Delegation of Financial
Power Rules. The Central Treasury Rules, The Receipt and
Payment Rule, 1983 and best practices from the
organisations such as the Defence Accounts Department
17. Duties and Responsibilities: -
Sr.GM/GM/HoD would be responsible for
seeing that there is adequate control over
the cash section and will be responsible for
ensuring that there is adequate control over
the cash section and the existence and
proper functioning of an effective system of
control over the custody, receipt and
disbursement and accounting of cash.
18. The Sr.GM/GM/HoD will ensure that there is only Public
Fund Account of the factory.
The Sr.GM/GM who is the head of department and HoDs
of other establishments will authorise an officer, normally
the Joint General Manager, Deputy General Manager or the
Works Manager looking after the administrative sections of
the factory or if no such officer is available any other officer
of similar rank as Head of Office.
Will authorise a gazetted officer, not below the rank of
Assistant Works Manager, to function as Drawing and
Disbursing Manager who will be the Officer-in-charge of
cash officer and will ensure strict compliance of all the
principles contained in Rule 13 of the Receipts and
Payment, 1983
19. He will direct the submission of the monthly correctness
certificate by the Head of Office by the 15th of every month
for the previous month and take corrective action as may
be deemed necessary.
The Sr.GM/GM/HoD will depute an IOFS officer not below
the rank of Works Manager to conduct surprise checks of
the cash in hand and as shown in the cash book. The date
and time of the check will be submitted to the
Sr.GM/GM/HoD by the officer nominated for the purpose
of the check personally. The results of the check will be
entered in a register maintained in the office of the
Sr.GM/GM/HoD for the purpose.
20. Quarterly inspection check by Sr.GM/GM/HoD should
be done to subscribe himself of proper functioning of
the Cash Drill Proceudure over and above the
Quarterly Audit Board report in the prescribed format.
Will be the permanent advance (imprest) Holder and
will submit the annual certificate regarding
Recoupment of the amount of imprest.
21. Will acquaint himself well with the executive powers
associated to the post.
Will Authorise a gazetted officer, not below the rank of
Assistant Works Manger, to function as the Drawing and
Disbursing officer who will be the officer in charge of cash
or the cash officer and will ensure strict compliance of all
the principles contained in Rule 13 of the Receipts and
Payments rules, 1983
Will publish a separate factory order / office order, on
approval of HoD indicating the name of the officer, as
DDO/Cash Officer and that he will exercise the powers
contained in the Cash Drill Procedure and compliance of
Receipts and Payments Rules, 1983.
22. Will Forward the specimen signatures of the
DDO/Cash officer to the Local Accounts Office (LAO)
/ Branch of the Bank where the Public Fund Account is
maintained.
Will ensure that the Cash Officer and the Cashier
undergo training on the principles and procedures of
accounting for cash either at departmental training
establishments such as NADP, OFIL or at any suitable
institute
23. Will conduct a check of the cash book on the last day
of every month in accordance with checkpoints: -
a) Physical cash to tally with Cash Book
b) Whether the cash book is up-to-date.
c) Whether the opening balance has been correctly
carried forward from the previous month
d) Whether receipt entries have been made for
corresponding payment entries.
e) Whether imprest payments are being recouped on
time
24. a) Whether balance sheet and bank statement are up-
to-date
b) The oldest liability as per balance sheet.
c) Will conduct a test check as to whether vouchers are
being signed by the DDO/Cash Officer.
d) Whether Govt. money has been credited through e-
MRO at the first opportunity.
25. Cashier
Will be responsible for writing the cash book in
accordance with the procedure prescribed in CDP.
Will be responsible for the safe custody of the cash
book all the vouchers and other documents connected
with its maintenance.
On being authorised to draw cash from the Public
Fund Account, he will be responsible for receiving
correct cash from the bank.
Maintain the cash book as per the CDP,
26. The Central Government Account ( Receipts and
Payments) Rules contain rules regulating the custody
of the Consolidated Fund of India and the
Contingency Fund of India, the payment of moneys
into such funds, the withdrawal of money there from,
the custody of public moneys other than those
credited to such funds received by or on behalf of the
Government of India, their payment into the Public
Account of India and the withdrawal of moneys from
such Account in and others matters connected
therewith or ancillary thereto.
27. General Financial Rules (GFRs) are a compilation of
rules and orders of Government of India to be followed
by all while dealing with matters involving public
finances. These rules and orders are treated as
executive instructions to be observed by all
Departments and Organisations under the
Government and specified Bodies except otherwise
provided for in these Rules.
28. Rule 154 of the GFRs state the process of procurement
of goods without quotation. Purchase of goods upto
the value of Rs. 25,000 (Rupees twenty five thousand)
only on each occasion may be made without inviting
quotations or bids on the basis of a certificate to be
recorded by the competent authority in the following
format. “I, am personally satisfied that these goods
purchased are of the requisite quality and specification
and have been purchased from a reliable supplier at a
reasonable price.” •
29. Rule 155 of the GFRs state the purchase of goods by Purchase
Committee. Purchase of goods costing above Rs. 25,000 (Rupees twenty
five thousand only) and upto Rs.2,50,000/- (Rupees two lakh and fifty
thousand only) on each occasion may be made on the
recommendations of a duly constituted Local Purchase Committee
consisting of three members of an appropriate level as decided by the
Head of the Department. The committee will survey the market to
ascertain the reasonableness of rate, quality and specifications and
identify the appropriate supplier. Before recommending placement of
the purchase order, the members of the committee will jointly record a
certificate as under. “Certified that we, members of the purchase
committee are jointly and individually satisfied that the goods
recommended for purchase are of the requisite specification and
quality, priced at the prevailing market rate and the supplier
recommended is reliable and competent to supply the goods in
question, and it is not debarred by Department of Commerce or
Ministry/Department concerned
