Panchayat:Repo18/vol2-page0735

GOVERNMENT ORDERS 735

d. Accounting of "goods received & accepted but no bills received” as at the cut off date shall be accounted based on purchase orders. The cut-off date shall be 30 days before the date prescribed for the finalization of Annual Financial Statements under the Rules.

e. The stock lying at the period-end shall be valued at cost in accordance with the First in - First out Method.

f. Revenue in respect of disposal of stores shall be recognised on actual receipt.

g. Consumption of stores used for repairs and maintenance shall be charged to Income & Expenditure Account. If it is used in construction/creation of a fixed asset, it shall be added to the cost of the asset.

h. Inventories of consumable supplies such as stationery, fuel, etc., shall be charged to revenue at the time of purchase.

i. Statutory deductions like Income Tax, Value Added Tax, etc. made from the Supplier's bill to be recognised when the deductions are made.

Employee Related Transactions

a. Expenditures on Salaries and other allowances shall be recognised as and when they are due for payment.

b. Statutory deductions from salaries including those for Income tax, Profession tax, Subscription to Provident Fund, etc., shall be recognised as liability in the same period in which the corresponding salary is recognised as expenditure.

c. Pension contribution made by the Panchayat shall be recognised as and when it is due.

d. Liability towards leave encashment shall be recognised as and when the amount is determined.

e. Bonus, Festival allowance and medical reimbursements to the employees shall be recognised as expenditure as and when they are due for payment.

Other Revenue Expenditures

a. Other Revenue Expenditures shall be treated as expenditures as and when they become due.

b. Provisions shall be made at the year-end for all bills received up to a cutoff date. The cut-off date shall be 30 days before the date prescribed for the finalisation of Annual Financial Statements under the Rules.

C. Any expenditure for which the payment has been made in the current period but the benefit and/or service is likely to arise in a future period shall be treated as an expenditure for the period in which benefit arises and/or services are received.

d. The expenditure for the current period shall include the proportionate value of the benefits and/or services arising in the current period even if the payment therefore has been made in the previous period.

Grants, Funds and Contributions

a. General Grants and Funds, eg. General Purpose Fund, which are of revenue nature, shall be recognised as income on actual receipt.

b. Specific Grants and funds towards revenue expenditure, received prior to the incurrence of the expenditure (received in advance), shall be treated as a liability till such time that the expenditure is incurred.

c. Grants received or receivable in respect of specific revenue expenditure, eg. Maintenance Fund, shall be recognised as income in the accounting period in which the corresponding revenue expenditure is charged to the Income and Expenditure Account.

d. Grants and funds received towards capital expenditureshall be treated as a liability till such time that the fixed asset is constructed or acquired. On Construction/acquisition of a fixed asset out of the grants so received, the extent of liability corresponding to the value of the asset so constructed/acquired is to stand reduced and the amount shall be treated as a capital receipt and shall be transferred from the respective Specific Grant and fund Account to Capital Contribution.

e. In the case of Schemes where the Panchayat receives funds which is treated as a loan and shall be recovered from the beneficiaries, the amount received for the Scheme shall be shown as a liability. The amount disbursed to the beneficiaries shall be shown as a recoverable (current asset).

f. In case of Indirect grants (expenditures of the Panchayat met directly by the government) where deduction is made by the Government for service provided, loan recovery, etc., gross amount shall be accounted as grant, and the amount deducted shall be accounted as expenditure or loan repayment.

ഈ താൾ 2018 -ലെ പഞ്ചായത്ത് റെപ്പോ നിർമ്മാണം യജ്ഞത്തിന്റെ ഭാഗമായി സൃഷ്ടിച്ചതാണ്.