Panchayat:Repo18/Law Manual Page0925
Rule-58
(4) Every investment held by the Panchayat shall be submitted for physical verification to the auditor at the time of audit.
49. Specific grants, funds and contributions. Where any grant, fund or contribution is received for a specific purpose, such grant, fund or contribution shall not be diverted even temporarily for any purpose other than for which it was received.
50. Special Funds. Where any fund has been set apart by the Panchayat under any directive from Government, such fund shall be treated as a Special Fund and the fund shall not be utilized for any purpose other than for which it was constituted.
51. Specific Loans. Where any loans have been availed by the Panchayat, such loan shall not be utilized for any purpose other than for which it was availed. The loans shall be obtained for the purposes and as per the conditions approved by Government.
52. Endowments. Any endowment constituted or accepted by the Panchayat shall be treated as a Special Fund and the proceedings thereof shall be utilized only for the purpose for which the endowment was constituted or accepted.
53. Sinking Fund. (1) A Sinking Fund shall be constituted, if necessary, as per the conditions prescribed by Government for the replacement of an asset or liquidation of a liability.
(2) On examination, if it is observed that the present value of Sinking Fund investment is less than the value of the fund stipulated by Government in the terms of sanction, the difference shall be made good from the Panchayat Fund.
54. Pension Contribution. The contributions towards retirement benefits of employees of the Panchayat like Pension and Gratuity, shall be made to Government every month.
55. Transfer to Capital Fund. Where the Government prescribes a percentage of amount to be transferred every year from Revenue Fund to Capital Fund, the same shall be done before the finalisation of the Annual Financial Statements.
56. Remittance of Cess. The cesses collected in respect of Government or other authorities shall be remitted to the authorities concerned within the time limit prescribed by the Government through crossed cheques or demand drafts.
CHAPTER VI
57. Reconciliation of Bank/Treasury Accounts. The closing balances of the Bank Books shall be reconciled with the closing balances of the Bank/Treasury Statement obtained at the end of each month. After completing the process of reconciliation, the Accountant shall prepare a Bank/Treasury Reconciliation Statement before the 5th of the subsequent month. The Reconciliation Statement shall be attested by the Secretary.p
58. Period end procedures. The period end procedures prescribed below shall be caused to be carried out by the Secretary.
(1) The following procedures shall be carried out daily;
(a) Closing of Cash Book and Bank Book
(b) Physical verification of Cash balance with Cash Book balance;
(c) Checking of ledger accounts with the books of original entries i.e., Cash Book, Bank Book and Journal Book;
(2) The following procedures shall be carried out at the end of every month: