GOVERNMENT OF THE KHYBER PAKHTUNKHWA
LOCAL GOVERNMENT, ELECTIONS ANDRURAL DEVELOPMENT
DEPARTMENT
NOTIFICATION
Peshawar,
dated the January 13, 2016
No. SO(Dir)Distt
(Budget)Rules/LGE&RDD/2016. In exercise of the powers conferred by section
112 (1) of the Khyber Pakhtunkhwa Local Government Act, 2013 (Khyber
Pakhtunkhwa Act No. XXVIII of 2013) the Government of Khyber Pakhtunkhwa is
pleased to make the following Rules, namely;
“THE
DISTRICT OR CITY DISTRICT GOVERNMENT (BUDGET) RULES, 2016”
PART
I
PREAMBLE
1) Short
title, applicability and commencement-
1)
These Rules may be called the District
or City District Government (Budget) Rules, 2016.
2)
These
shall apply to:
a)
city
district government for district Peshawar, and
b)
district
governments for all districts other than Peshawar in the province.
3)
They
shall come into force at once.
2) Definitions-
1)
In
these Rules, unless there is anything repugnant in the subject or context-
a) “Actuals”
mean
the actual figures of receipts realized and or expenditure incurred, as
the case may be, in a financial year as recorded by the District Accounts
Officer or provided in the printed Appropriation Accounts or in the Monthly
Civil Accounts;
b)
“Administrative approval” means
the concurrence and formal acceptance by the competent authority of a
proposal to incur expenditure subject to availability of funds for the said
proposal in a financial year;
c)
“Annual Budget Statement" means
a statement of estimated receipts and expenditure of the District or
City district government caused to be laid before the district council in
respect of every financial year, showing separately;
i.
the sums required to meet expenditure
described by the Act as expenditure charged upon the District Fund; and
ii.
the sums required to meet other
expenditure proposed to be made from the District Fund; and
iii.
distinguishes
expenditure on revenue account from other expenditure;
d)
“Annual Development Programme” means
the Annual Development Plan submitted along with the Annual Budget
Statement, which includes the details of capital and revenue expenditure
proposed for the various developmental schemes in the budget for a financial
year;
e)
“Appropriation” means
an allocation of funds to an office on the basis of the Authenticated
Schedule of Authorized Expenditure;
f)
“Budget” means
a statement of the estimated receipts and expenditure of the District or
City District Government for a financial year;
g)
“Budget Calendar” means the calendar given in the
Second Schedule;
h)
“Budget Documents” mean the
documents specified in Part X of these Rules;
i)
“Budget Estimate” for
a financial year, means in relation to expenditure, the expenditure
proposed for that year, and in relation to receipts, the receipts expected to
be realized during that year;
j)
“Budget Year” or “Financial Year” means
the year commencing on the 1st
day
of July of a Calendar Year and ending on 30th
June of the following calendar year for which the Annual Budget Statement is
proposed;
k)
“Capital expenditure” means
the expenditure incurred with the objective of either increasing
concrete assets of a material and permanent character, or reducing recurring
liabilities, and of the receipts of capital nature intended to be applied as
set-off to capital expenditure;
l)
“Capital receipts” mean
receipts from sources other than the general revenues and include-
i.
recoveries
of investment (either from charging or sale proceeds);
ii.
recoveries
of loans and advances; and
iii.
public
debt
m)
“Charged expenditure” means
such items of expenditure as are enumerated in the Act , and are not
subject to vote of the District Council;
n)
“Collecting Officer” means
the officer who is responsible for estimation and realization of
receipts from the area within his jurisdiction designated by the Head of
Offices for the offices under his administrative control;
o)
“Competent Authority” means
any authority to which the relevant powers under any set of rules may be
delegated by the Government;
p)
“Current Budget” means
the sum of approved estimates of the current expenditure for a financial
year in the Annual Budget Statement;
q)
“Current expenditure” means
expenditure met from the approved estimates of the current budget in the
Annual Budget Statement;
r)
“Demand for Grant” means
a proposal made to the District Council, on the recommendations of the
Nazim District Government, for withdrawal of a certain sum out of the District
Fund for expenditure which is granted, or deemed to have been granted;
s)
“Development expenditure” means
the expenditure incurred with the objective of:-
i.
creating
material assets;
ii.
keeping intact or enlarge and improve
the physical resources of the district;
iii.
improving
the knowledge, skill and productivity of the people; and
iv.
encouraging
efficiency in the use of available resources.
t)
“Development Budget” means
the sum of approved estimates of development expenditure for a financial
year in the Annual Budget Statement;
u)
“District Accounts Officer” means
the head of the District Accounts Office in a district entrusted with
the maintenance of accounts for the District or City district government as per
section 36 (2a) of the Act;
v)
“Drawing and Disbursing Officer” means
the officer designated by the Head of the Office to prepare estimates of
expenditure and actually incur expenditure in respect of the office to which he
is the Drawing and Disbursing Officer;
w)
“Form” means a form prescribed under these
Rules;
x)
“Function” means
the accounting classification used in the Chart of Accounts issued by
the Auditor General of Pakistan, which provides information on particular
economic activities;
y)
“Grant” means
the amount granted or deemed to have been granted by the District
Council, in respect of a Demand for Grant as specified in the Schedule of
Authorized Expenditure;
z)
“Outcome” means
the result or impact on a target population of a particular service or
output being delivered;
aa)
“Output” means a delivered service or product;
bb) “Object”
means
the accounting classification used in the Chart of Accounts issued by
the Auditor General of Pakistan, which classifies the nature of expenditure
e.g. salaries, travel, transport etc.;
cc)
“ Act” means the Khyber Pakhtunkhwa Local
Government Act, 2013;
dd) “Part” means a part of
these Rules;
ee)
“Re-appropriation” means
the internal transfer of savings from one object to other object(s) in
the appropriations of the same unit to meet anticipated excess expenditure in
other object(s);
ff)
“Receipt” means the actual cash collected by the
district government;
gg)
"Registration Authority" means
the District Officer (Registration), who is declared as such by a
District Government;
hh)
“Revenue receipts” mean
the receipts accruing from tax and non-tax revenues;
ii)
“Revised estimates” mean
the estimate of the probable receipts or expenditure, for a financial
year, framed in the course of that year, with reference to the transactions
already recorded;
jj)
"Schedule" means a schedule
to these Rules;
kk)
“Schedule of Authorized
Expenditure” means the schedule prepared, after the
approval of the Annual Budget Statement by the District Council or
Supplementary Budget in respect of a financial year and authenticated by the
Nazim;
ll)
"Section" means
a section of the Khyber Pakhtunkhwa Local Government Act, 2013;
mm)
“Supplementary Budget Statement” means
the statement to be laid before the District Council showing the amount
of the additional expenditure estimated to be required during a financial year,
over and above the expenditure already authorized, for that year;
nn)
“Supplementary Grant” for
a financial year means an amount provided in addition to the original
Grant or appropriation approved by the District Council;
oo)
“Surrender” means
an amount included in the budget that is given back, as it shall not be
spent in the financial year by the office;
pp)
“Technical Sanction” is
the sanction to a properly detailed estimate of cost of a work of
construction or repair; and
qq)
“Voted expenditure” means
expenditure that is submitted to the vote of the District Council.
2)
Terms and expressions used but not
defined in these Rules shall have the same meaning as defined in the Act.
3)
In case of any ambiguity or
inconsistency arising in the interpretation or construction of the provisions
of these Rules, the Government shall resolve such ambiguity or inconsistency.
PART II
FUNCTIONS OF THE
OFFICERS RELATING TO BUDGET
3) Principal Accounting
Officer-
1)
The Deputy Commissioner shall be the
Principal Accounting Officer of the District Government.
2) The
Principal Accounting Officer shall have the following functions with respect to
budgeting of the District Government-
a)
overall oversight and guidance on budget
formulation, consolidation, scrutiny or review and its submission to the
District Council
b)
ensure that the budget for the estimated
expenditure of the District Government does not exceed its estimated receipts
c)
assess the estimated receipts of the
District Government in a timely manner as per the share communicated by
Provincial Finance Commission and the own source revenues of the District
Government
d)
instil institutional mechanism for
compliance to Budget Call Circular and guidelines by District Offices including
his own office
e)
observance of all relevant financial
rules and regulations both by his own office and by subordinate disbursing
officers;
f)
mobilization
of resources and revenue as per the projected targets
g)
must see that the total expenditure is
kept within the limits of the authorized appropriation;
h)
must see that the funds allotted to
spending units are expended in the public interest and upon objects for which
the money was provided;
i)
must be in a position to assume before
District Government and Districts Accounts Committee, if necessary, complete
responsibility for departmental expenditure and to explain or justify any
instance of excess or financial irregularity that may be brought to notice as a
result of audit scrutiny or otherwise;
j)
finance is an essential element in
policy questions and the Principal Accounting Officer shall ensure that
financial considerations are taken into account at all stages in framing and
implementing decisions;
k)
that
the flow of expenditure does not give rise to demand for additional funds;
l)
shall ensure that all district offices
regularly undertake monthly reconciliation of expenditure with the District
Accounts Officer and that it receives consolidated statement of monthly
expenditure duly reconciled; and
m)
provide strategic guidance and oversight
on generation and publication of monthly budget execution reports by the
District Officer Finance and Planning.
4) Head
of Offices-
1)
In
relation to the District Government, the Head of Offices means the-
a)
The Deputy Commissioner for operational
components and business of Coordination, Finance and Budget, Human Resource
Management, Planning and Development and Revenue Administration as per the
Second Schedule of the Act; and
b)
The District Officers for each of the
district offices enlisted in the Second Schedule of the Act.
2) The Head of
Offices shall be responsible for-
a)
all matters relating to the budget for
the offices under his administrative control;
b)
ensuring
strict financial control;
c)
ensuring observance of all relevant
financial rules and regulations both by his own office and by sub-ordinate
disbursing offices;
d)
review the ‘state of the sector’,
assessing overall sector needs, the extent and quality of service cover,
identify critical service delivery gaps and other contributing issues for
effective reflection in the budget proposals;
e)
consult with communities through
pre-budget and other relevant forums to verify and fine tune sectoral
requirements, and take note of any additional weaknesses or gaps identified by
communities;
f)
prepare Annual Sector Business Plan, on
prescribed format, identifying sector goal, outcomes, outputs, targets and key
performance indicators consistent with the national and provincial level
sectoral policies and strategies;
g)
prepare budget for the sector by linking
targets with the budgetary allocations against clearly defined outcomes and
outputs;
h)
regularly monitor budget execution and
measure sector performance, in particular against stipulated outcomes and
outputs;
i)
ensuring that the total expenditure is
kept within the limits of authorized appropriation;
j)
ensuring that the funds allotted are
spent on the activities for which the money was provided;
k)
explaining any instance of excess or
financial irregularity that may be brought to notice as a result of audit
scrutiny or otherwise;
l)
ensuring that adequate provisions exist
for systematic internal checks to prevent and detect errors and irregularities
in the financial proceedings of his subordinate offices;
m)
ensuring
that the internal controls are effectively applied;
n)
guarding
against waste and loss of public money;
o)
ensuring that satisfactory arrangements
exist for systematic and proper maintenance of office accounts and other
ancillary record;
p)
ensuring that the auditors are afforded
all reasonable facilities in the discharge of their functions and furnished
with the fullest possible information for which they may ask;
q)
ensuring that no such information or any
books or other documents to which the Auditor General of Pakistan has a
statutory right of access may be withheld; and
r)
coordination
with the District Officer Finance and Planning.
5) Collecting
Officer-
1)
The
functions of the Collecting Officer are-
a)
preparing
the estimates of receipts under his jurisdiction;
b) all matters
relating to realization, and deposits of receipts;
c)
ensuring all sums due to Government are
regularly and promptly assessed, realized and duly credited in the Public
Account;
d)
coordination
with the concerned higher level officials;
e)
keeping the District Officer Finance and
Planning fully informed of the progress of collection of revenue under his
control and of all important variations in such collections as compared with
the budget estimates;
f)
ensuring
observance of all relevant financial rules and regulations;
g)
guarding
against waste and loss of public money;
h)
ensuring that satisfactory arrangements
exist for systematic and proper maintenance of office accounts and other
ancillary record of receipts;
i)
coordination
with the District Officer Finance and Planning ;
j)
monitoring of the budget execution
through regular revenue reviews ensuring that revenue is realized as approved
by the District Council.
6) District Officer
Finance and Planning-
1)
In order to perform its function, the
District Officer Finance and Planning (DO F&P) will have Deputy District
Officer Finance and a Deputy District Officer Planning.
2)
The District Officer Finance and
Planning shall be responsible for the overall supervision, control and
coordination of the finance function of the district government to maintain
effective liaison and coordination around annual budget process with all key
stakeholders;
3)
District Officer Finance and Planning
shall undertake the final scrutiny, consolidation and submission of prescribed
budget documents to the District Council.
4)
In the discharge of functions entrusted
hereinafter in these rules, the District Officer Finance and Planning shall be
guided by the following principles-
a)
fiscal planning, particularly annual
budgeting, with a focus towards a medium term of 3 years, whilst at the same
time endeavouring to improve effectiveness and efficiency in budgetary
processes through greater integration of current and development budget;
b)
transparent, accountable and
participative budget preparation ensured through pre-budget consultations and
greater citizens’ participation for needs based budgeting and a robust system
of performance measurement;
c)
the budget proposals based on planned
outcomes and outputs and not solely based on inputs;
d)
greater budget transparency and public
access to budget information throughout the budget cycle;
e)
predictability on availability of funds
to the district offices for preparation of budget proposals within the overall
fiscal constraint; and
f)
abolition and creation of posts on the
establishment of district offices and examination of schedule of new expenditure
with the approval of Provincial Finance Department.
7) Deputy District
Officer Finance
1)
The Deputy District Officer Finance in
the case of a District Government shall be part of the District Officer Finance
and Planning.
2)
ways and means of the district
government and matters relating to Provincial Finance Commission;
3)
examination and advice on matters
affecting, directly or indirectly, the finances of the district government like
emoluments, grants, contributions, allowances, honoraria, defalcation,
embezzlement and losses;
4)
tax
proposals in areas within the authority of the district government;
5)
mobilization
of district resources in consultation with the Provincial Government;
6)
forecasts on resource availability for
expenditure in the medium term of 3 years for district offices;
7)
issue
the budget call circular after approval of the Nazim, which shall include-
a)
date-wise
budget calendar;
b)
instructions
and budget guidelines for preparing the current budget;
c)
forms
to be used in the preparation of the current budget; and
d)
indicative
current and development budget ceilings for 3 years.
8)
overall
quality assurance of the budget process and budget documents;
9)
holding pre budget consultations with
key stakeholders to ensure that budget is based on the evidence of people’s
needs;
10) examination and
scrutiny of the budget proposals;
11) examination and
scrutiny of new expenditure;
12) compilation and
consolidation of the budget;
13) communication of
Grants to Drawing and Disbursing Officers;
14) monitoring
of the budget execution through regular expenditure or revenue reviews, as the
case may be, ensuring that funds are spent or realized, as the case may be, as
approved by the District Council;
15) submit reports
on budgetary performance;
16) provide
financial information to the District Council relating to district government;
17) examination
and scrutiny of proposals for Re-appropriation and Supplementary Grants;
18) appropriation
and re-appropriation within Grants;
19) compilation and
release of regular budget execution reports; and
20) provide
such other supervision and administration as may be required from time to time
in connection with or ancillary to any of the foregoing aspects of the
budgetary process.
8) Deputy
District Officer Planning-
1)
The Deputy District Officer Planning, in
the case of a District Government, shall be part of the District Officer
Finance and Planning.
2) The
Deputy District Officer Planning shall be responsible for the overall
supervision, control and coordination of the planning processes of the district
government. It shall be the prime function of the Deputy District Officer
Planning to maintain effective liaison and coordination around annual budget
process with all key stakeholders; and to undertake the final scrutiny,
consolidation and submission of Annual Development Programme to the District
Council.
3)
In the discharge of functions entrusted
hereinafter in these rules, the Deputy District Officer Planning shall be
guided by the following principles-
a)
fiscal planning, particularly annual
budgeting, with a focus towards a medium term of 3 years, whilst at the same
time endeavouring to improve effectiveness and efficiency in budgetary
processes through greater integration of current and development budget;
b)
transparent, accountable and
participative budgeting ensured through pre-budget consultations and greater
citizens’ participation for needs based budgeting and robust system of
performance measurement;
c)
the budget proposals based on planned
outcomes and outputs and not solely based on inputs consistent with the
national and provincial level policy objectives;
d)
greater budget transparency and public
access to budget information throughout the budget cycle; and
e)
predictability on availability of funds
to the district offices for preparation of budget proposals within the overall
fiscal constraint.
4)
The Deputy District Officer Planning
shall perform the following functions- donor coordination
a)
preparation
of medium and long term development plans for the district;
b)
issue the Annual Development Programme
(ADP) guidelines after approval of the Nazim, which shall include-
i.
date-wise
calendar;
ii.
instructions
and guidelines for preparing the ADP;
iii.
forms
to be used in the preparation of the ADP; and
iv.
indicative
development budget ceilings for 3 years.
c)
preparation, implementation, monitoring
and evaluation of ADP in coordination with district offices;
d)
coordination with the Provincial
Government on issues in planning and development;
e)
work as secretariat for the District
Development Working Party for approval of developmental schemes;
f)
overall
quality assurance of the process of framing the ADP;
g)
collection, analysis, compilation and
publication of development and socio-economic statistics of the district;
h)
undertaking
research and surveys on strategic issues of the district;
i)
promotion
of private sector development and public private partnership;
j)
promotion of accelerated development
based on the evidence of peoples’ needs and marginalized areas with greater
gender sensitivity;
k) monitoring
of the budget execution through regular expenditure reviews ensuring that funds
are spent as approved by the District Council;
l)
submit
reports on performance against the ADP;
m)
provide financial and physical
information to the District Council relating to the ADP of the district
government;
n)
examination and scrutiny of proposals
for Re-appropriation and Supplementary Grants relating to development budget;
o)
appropriation
and re-appropriation within Development Budget Grants;
p)
compilation
and release of regular budget execution reports; and
q)
provide such other supervision and
administration as may be required from time to time in connection with or
ancillary to any of the foregoing aspects of the budgetary process.
9) Drawing and
Disbursing Officer-
1)
The Drawing and Disbursing Officer shall
be designated as such by the respective Head of Offices under his
administrative control.
2)
The
functions of the Drawing and Disbursing Officer are-
a)
ensuring that the expenditure is
incurred with due regard to high standards of financial propriety;
b)
ensuring that the funds allotted are
spent for the purpose for which they are allocated;
c)
ensuring observance of all relevant
financial rules and regulations both by his own office and by sub-ordinate
disbursing offices;
d)
ensuring
that the actual expenditure does not exceed the budget allocation;
e)
compliance to the timelines and
guidelines of budget call circular and ADP guidelines issued each year by the
District Officer Finance and Planning for preparation of budget proposals;
f)
maintenance of all relevant records both
accounting and operational up to date and in an orderly manner as prescribed by
relevant rules;
g)
preparation of the estimates of
expenditure and revenue, as the case may be, for the offices under his
jurisdiction;
h)
coordination with the concerned higher
level officials and the District Officer Finance and Planning ;
i)
regular monthly reconciliation of
expenditure and revenue with the District Accounts Officer;
j)
guarding
against waste and loss of public money;
k)
ensuring that adequate provisions exist
for systematic internal checks to prevent and detect errors and irregularities
in the financial proceedings;
l)
provide full support on development of
Annual Sector Business Plan, on prescribed format, identifying sectoral goal,
outcomes, outputs, targets and key performance indicators consistent with the
national and provincial level sectoral policies and strategies;
m) prepare
budget for the sector by linking targets with the budgetary allocations against
clearly defined outcomes and outputs; and
n)
regularly monitor budget execution and
measure sectoral performance, in particular against stipulated outcomes and
outputs.
PART III
BUDGET CLASSIFICATION
AND CALL CIRCULAR
10)
Principles of Budgeting-
1)
Budget is a statement of receipts and
expenditure during a financial year depicting the financial plan of a district
government as to how available resources are to be spent on prioritized needs
over a period of time and thus reflects the district government policies,
priorities, financial strategy and operational plans in financial terms.
2)
The
guiding principles of budgeting for the district government shall be-
a)
Principle of Annuality -
Presentation of budget is in respect of the ensuing financial year only.
The grants authorized by the District Council are valid for one financial year
and cannot be carried forward to the next year. Consequently, the unutilized
funds lapse at the end of the financial year;
b)
Principle of Comprehensiveness -
Budget includes the estimates of all foreseeable items of receipts and
expenditure, contains full information on current programs and activities and
presents a correct picture of the financial position of the government;
c)
Principle of Specificness and
Clarity - All items of incomes and expenditure shall
be specific to programs and activities and not lump-sum provisions. This
facilitates proper scrutiny at all levels and helps all concerned parties to
monitor the budget and exercise budgetary control;
d)
Principle of Accuracy -
Gross underestimation and overestimation are serious budgetary
irregularities. Thus budgetary provisions should neither be more nor less. This
is of course subject to variations resulting from unforeseen developments or
circumstances; and
e)
Principle of Periodic Review and
Corrective Action - The Head of Offices are
expected to be watchful as regards progress on both receipts and expenditure
side. There should be continuous assessment of program and financial
performance to encourage progress toward achieving goals.
3)
The Nazim shall ensure that the needs of
the disadvantaged groups are reflected in the priorities and gender issues are
adequately addressed.
11)
Budget Classification-
1)
The budget shall be prepared in
accordance with Chart of Accounts issued by the Auditor General of Pakistan;
2) The
prime interface for budgeting and expenditure management shall be the
online-real-time Integrated Financial Management Information System of the
Provincial Government;
3)
Classification parameters for the
revenues or receipts forming part of the District Fund shall be-
a)
the Entity Element with classification
codes given in the Chart of Accounts for district government, district offices,
districts and fund and revenue collecting officer (RCO);
b)
The broader classification of revenues
and receipts forming part of the District Fund shall be-
i.
Tax
Revenue;
ii.
Non
Tax Revenue; and
iii.
Capital
Receipts.
c)
the Object Element with classification
codes given in the Chart of Accounts as per the following structure-
i.
Major
Object;
ii.
Minor
Object; and
iii.
Detailed
Object.
4)
Classification parameters for the
expenditure forming part of the District Fund shall be-
a)
the Entity Element with classification
codes given in the Chart of Accounts for district government, district offices,
districts and fund and cost centers;
b)
the Functional Element with
classification codes given in the Chart of Accounts as per the following
structure-
i.
Major
Function;
ii.
Minor
Function;
iii.
Detailed
Function;
iv.
Sub-detailed
Function.
c)
the Object Element with classification
codes given in the Chart of Accounts as per the following structure-
i.
Major
Object;
ii.
Minor
Object; and
iii.
Detailed
Object.
d)
The Fund Element with classification
codes given in the Chart of Accounts as per the following structure-
i.
Fund
i.e. District Fund or Public Account;
ii.
Source
of Fund i.e. Met from Capital or Revenue;
iii.
Sub-fund
classification-
1.
Voted
Current Expenditure;
2.
Voted
Development Expenditure;
3.
Voted
Capital Expenditure;
4.
Charged
Current Expenditure;
5.
Charged
Development Expenditure; and
6.
Charged
Capital Expenditure.
iv.
Grant
Number
e)
The Project Element for development
expenditure with unique project code assigned to each project.
5)
The budget of the District Council and
its Secretariat shall be reflected separately in the Budget. A separate Drawing
and Disbursing Officer shall be designated for the District Council budget.
12)
Public Account-
1)
Every
District Government shall maintain a Public Account.
2)
The estimates relating to Public Account
shall be prepared by the District Officer Finance and Planning on receipt of
the figures from the concerned offices.
3)
Monies collected under Public Account
shall not be available for annual appropriation.
4)
The withdrawals from the Public Account
shall be for the purpose for which funds were deposited.
5)
Repayments of expenditure from Public
Account heads must be credited to the same head regardless of when the original
expenditure was incurred.
6)
The
balances available in Public Account shall be non-lapsable.
7)
Classification parameters for the
receipts and expenditure into or out of Public Account shall be-
a)
the Object Element with classification
codes given in the Chart of Accounts as per the following structure-
i.
Major
Object;
ii.
Minor
Object; and
iii.
Detailed
Object.
b)
the
Major Accounts maintained under Public Account shall be-
i.
Trust
Accounts; and
ii.
Special
Deposit Accounts.
c)
the
broader classification of transactions under Public Account shall be-
i.
Assets;
ii.
Liabilities;
and
iii.
Equity.
13)
Budget Call Circular and ADP
Guidelines-
1)
The Budget Call Circular shall be issued
by District Officer Finance and Planning each year as per the budget calendar.
2)
The ADP guidelines shall be issued by
Deputy District Officer Planning each year as per the calendar for the
formulation of ADP.
3)
The Budget Call Circular and ADP
guidelines shall be finalized after consultation with the relevant
stakeholders.
Explanation: The expression
“stakeholders” include District Council, elected representatives, district
offices, general public, women's organization,
private
sector, Non-Governmental Organizations, Community Based Organizations, and
other organizations.
4)
The priorities identified based on the
evidence of peoples’ needs through greater stakeholder consultation shall be
consolidated in the draft Budget Call Circular and ADP guidelines by the
District Officer Finance and Planning and Deputy District Officer Planning
respectively.
5)
The District Officer Finance and
Planning shall develop fiscal forecasts for 3 years on fiscal space and
expenditure requirements based on the identified needs or priorities and firm
up the indicative budgetary ceilings for both current and development budget to
form integral part of the Budget Call Circular and ADP guidelines.
6)
The draft Budget Call Circular and ADP
guidelines shall be forwarded to the Nazim District Government for approval to
serve as a basis for the formulation of annual budget.
7)
After approval by the Nazim, the
District Officer Finance and Planning and the Deputy District Officer Planning
shall issue to each Head of Offices the Budget Call Circular and ADP
guidelines, including the budget calendar and indicative budgetary ceilings for
3 years.
8)
Each Head of Offices shall prepare its
budget in accordance with the Budget Call Circular and ADP guidelines approved
by the Nazim.
9)
Each Head of Offices shall ensure
effective engagement of its subordinate offices in the pre-budget hearings with
the District Officer Finance and Planning and the Deputy District Officer
Planning.
10) Each
Head of Offices shall prepare it budget with due compliance to the indicative
budgetary ceiling limits communicated by the District Officer Finance and
Planning and the Deputy District Officer Planning along with the Budget Call
Circular and ADP guidelines.
11) The
timeframe provided in the budget and ADP calendars shall be strictly adhered to
by each office of the District Government.
12) Filled
forms shall be submitted by the Drawing and Disbursing Officers, Collecting
Officers and Heads of Offices, including the ADP by the Deputy District Officer
Planning, in accordance with the timeframe specified in the budget calendar to
the District Officer Finance and Planning.
PART IV
ESTIMATES OF RECEIPTS
14)
Receipt Forms for Collecting
Officers-
1)
The District Officer Finance and
Planning shall, each year along with the Budget Call Circular, supply to the
Collecting Officers Forms BDR-1 to 4 relating to receipts as provided in the
First Schedule, in which the estimates of receipts for the coming financial
year along with projections for the next two years shall be prepared.
2) Projections
for the medium term shall be updated by the District Officer Finance and
Planning each year on rolling basis in consultation with relevant Collecting
Officers.
15)
Instructions for Collecting Officers-
1)
The Collecting Officers shall while
preparing their estimates of receipts shall be guided by the following-
a)
estimates
of receipts are prepared diligently and accurately;
b)
in relation to revised estimates, shall
take into consideration the actual receipts during the first eight months of
the financial year and also consider the figures of the previous financial year
duly reconciled with the District Accounts Office;
c)
all items of receipts that can be
foreseen shall be provided for in the budget estimates and the District Officer
Finance and Planning shall have the right to enhance or reduce them which it
thinks unjustifiable;
d)
the estimates of receipts should not be
merely an arithmetical average of preceding years’ figures. The average is a
guide but it should not be taken absolutely;
e)
the calculation of fixed revenue is to
be based on actual demands, including arrears, if any, and likelihood of
realization during the year;
f)
each Collecting Officer must provide
holistically the estimates of receipts with which he or she deals;
g)
lump sum provision in the budget should
not made or proposed except in most exceptional circumstance, which should be
invariably recorded;
h)
all material reasons, facts and
circumstances relied upon in adopting the figures for the Revised Estimates for
the current financial year shall be recorded clearly;
i)
the reasons for adopting the figures for
the budget estimates of the coming financial year are clearly explained; and
j)
the receipts shall cover all sources
including fiscal transfers from Provincial Government.
16)
Review of Revenue Base-
1)
In order to ascertain and realize the
revenue potential of the District Government, each Collecting Officer shall
conduct a review of the revenue sources and the required information shall be
prepared in Form BDR-3.
2)
The objections and suggestions from the
public and vetting by the Government shall be obtained after the taxation
proposals have been discussed by the Council.
3)
The timeframe to be followed for
finalizing the taxation proposals is specified in the budget calendar provided
in the Second Schedule.
17)
Submission of Receipt Forms to Head
of Offices-
1)
After duly completing the receipt forms,
the Collecting Officer shall sign the same and retain one copy for record in
his office, and forward the original to the Head of Offices. The explanatory
notes to the receipt forms shall be provided in Form BDR-5.
2) The
Collecting Officer shall in no case submit the estimates of receipts directly
to the District Officer Finance and Planning.
3)
The Head of Offices shall ensure the
receipt of complete information from all of its Collecting Officers and shall
ensure timely follow up on anything outstanding.
18)
Scrutiny and Consolidation of Estimates of Receipts-
1)
On receiving the estimates of receipts
from the Collecting Officer, each Head of Offices concerned shall finalize and
consolidate the figures furnished by his Collecting Officers.
2)
Each
Head of Offices shall prepare a note explaining any differences between-
a)
the revised estimates proposed for the
current financial year, and the budget estimates for the current financial
year;
b)
the budget estimates proposed for the
next financial year, and the revised estimates proposed for the current
financial year; and
c)
projections for the next two years in
the current financial year and those used in the preceding financial year.
3)
A copy of the duly completed forms and
the explanatory note prepared in Form BDR-5 shall be forwarded to the District
Officer Finance and Planning.
19)
Administrative Responsibility-
1)
The Heads of Offices and the Collecting
Officers shall be responsible for the correctness of all figures supplied to
the District Officer Finance and Planning.
20)
Consolidation of Receipts-
1)
Upon receipt by the District Officer
Finance and Planning of the estimates of receipts from the Heads of Offices,
the District Officer Finance and Planning shall consolidate such estimates. The
estimates of receipts shall be incorporated in the budget documents and
submitted for the approval of District Council.
PART V
ESTIMATES OF CURRENT
EXPENDITURE
21)
Preparation of Estimates of Current
Expenditure-
1)
The estimates of Current Expenditure
shall be prepared by Drawing and Disbursing Officers (DDOs) in accordance with
the budget guidelines according to which directions may be provided by the
respective Head of Offices.
2)
The estimates of expenditure shall be
provided on the Forms BDC-1 to 6 relating to Current expenditure.
22)
Instructions for Drawing and Disbursing Officers-
1)
The following guidelines shall be
followed for purposes of determining the Estimates of Current Expenditure-
a)
each Drawing and Disbursing Officer
shall develop the most realistic and sound estimates;
b)
the estimates for each financial year
shall provide only for such expenditure as are to be actually paid during the
financial year;
c)
lump sum provision in the budget should
not made or proposed except in most exceptional circumstance, which should be
invariably recorded;
d)
the estimates of expenditure should not
be merely an arithmetical average of preceding years’ figures. The average is a
guide but it should not be taken absolutely;
e)
all items of expenditure that can be
foreseen shall be provided for in the budget estimates;
f)
provision for each expenditure shall be
included under the appropriate head as per the classification structure of
Chart of Accounts;
g)
provision
should not be made in the estimates for posts decided to be left unfilled;
h)
carry out a detailed exercise in order
to assess the needs for the next financial year to avoid seeking supplementary
or additional grants at the very onset of the next financial ;
i)
the estimates for current expenditure
shall be based on the evidence of peoples’ needs and the policy objectives of
the sector with an aggregated view of the total budget of the office i.e.
current (ongoing and new) and development, if any;
j)
the measures for economy in expenditure
outlined in the instructions issued from time to time, as well as other
requirements applicable in general to the preparation of the estimates should
be strictly followed;
k)
the estimates for current expenditure
should not be prima facie more than the occasion demands.
l)
the making of revised estimates should
always precede estimates for next financial year; and
m)
compliance
to indicative budgetary ceilings shall be strictly adhered to.
23)
Submission to Head of Offices-
1)
After completing the forms the Drawing
and Disbursing Officer (DDO) shall retain one copy for record in his office and
forward the original together with an explanatory note on BDC-7 showing the
reasons for his proposal to the Head of Offices.
24)
Scrutiny and Consolidation by Head
of Offices-
1)
Each Head of Office shall develop an
Annual Business Plan according to the priorities laid out in the Budget Call
Circular and ADP guidelines for the respective offices under his administrative
control.
2) The
plan referred to in sub-rule (1) shall include all technical requirements
taking into account the weaknesses of the past gaps and the proposals with
detailed workings including the following on Forms BSF 1 to BSF 3-
a)
areas where the community can and is
likely to participate and opportunities for public private partnership;
b)
the
state of facilities and services already available;
c)
problems
and issues relating to the implementation of the current year’s budget;
d)
activities
proposed to continue for the next year’s Current budget;
e)
new activities proposed for the next
year including staffing requirements and establishment;
f)
status
of ongoing development projects, if any; and
g)
proposed sectors and projects for the
next year’s development budget based on the technical assessment by the
concerned offices.
3)
Upon receipt of expenditure estimates,
the Head of Offices shall review and finalize the estimates of expenditure and
then send the same to District Officer Finance and Planning.
4)
Each Head of Offices shall ensure that
no Drawing and Disbursing Officer under its administrative control directly
furnishes estimates for expenditure to the District Officer Finance and
Planning.
5)
The Head of Offices shall ensure that
the overall estimates are kept within the indicative budgetary ceilings and
that any request for additional bids over and above these ceilings shall be
thoroughly reviewed and full justification thereto shall be provided to the
District Officer Finance and Planning .
6)
Each Head of Offices must provide
holistically the estimates of expenditure with which it deals;
7)
The Head of Offices shall ensure the
receipt of complete information from all of its Drawing and Disbursing Officers
and shall ensure timely follow up on anything outstanding.
25)
Consolidation of Expenditure-
1)
The District Officer Finance and
Planning shall consolidate the estimates received from each Head of Offices.
2)
The estimates shall be submitted to the
District Council as part of the budget documents after finalization through
pre-budget departmental hearings.
26)
Other Statements-
1)
The
details of budget shall include-
a)
Statement
of investment if any as per Form BDO-1;
b)
Statement
of General Provident Fund as per Form BDO-2; and
c)
Statement
of outstanding liabilities, if any, on prescribed Form.
27)
Calculation of Establishment Charges-
1)
The salary budget of the offices shall
be prepared on the basis of the HR database maintained in the online-real-time
Integrated Financial Management Information System by the District Officer
Finance and Planning.
2)
The District Officer Finance and
Planning shall provide full information to each Head of Offices at the Drawing
and Disbursing Officers level in a timely manner.
3)
A schedule for meetings on finalization
of the salary budget of district offices shall be developed and circulated by
the District Officer Finance and Planning each year.
4)
The Head of Offices shall ensure
effective engagement of its subordinated offices in the meetings referred to
sub-rule (3) above.
5)
The District Officer Finance and
Planning shall ensure that the HR database is kept up to date, based on the
information collected from the Head of Offices.
6)
The
following forms shall be used for the calculation of establishment charges-
a)
Form
BDO-3 shall be used for calculating the salaries of the officials;
b)
Form
BDO-4 shall be used for calculating the allowances of the officials; and
c)
Forms BDO-3 and BDO-4 shall be for the
internal use of the offices and shall not be submitted with any of the budget documents.
28)
Conditional Grants-
1)
All conditional grants shall be budgeted
and utilized in accordance with the conditions applicable to the grant.
PART VI
STATEMENT OF NEW EXPENDITURE
(CURRENT BUDGET)
29)
New Expenditure-
1)
Expenditure on new activities shall
include the recurring costs of the development projects to be completed in the
next financial year and expenditure relating to new current activities.
2)
The Statement of New Expenditure shall
be subject to prior approval of Provincial Finance Department.
3)
Due diligence and utmost foresight shall
be ensured to keep the Statement of New Expenditure consistent with the policy
objectives and the fiscal space available to the Head of Offices.
4)
The new expenditure shall be provided
with the budget documents as a Statement of New Expenditure (SNE).
30)
New Proposals under Current Budget-
1)
Each Drawing and Disbursing Officer
shall for the next financial year send to the Head of Offices, all proposals
involving new current expenditure along with their estimates in Forms BDC-1 to
6.
2)
An
explanatory note justifying the new proposals shall be provided in Form BDC-7.
3)
The details of the recurring expenditure
of the development projects to be completed during the budget year, shall also
be communicated by the Drawing and Disbursing Officer (DDOs) to the concerned
Head of Offices.
31)
Instructions for New Expenditure-
1)
The respective Drawing and Disbursing
Officer (DDO), while preparing any proposal for new current expenditure shall
ensure that-
a)
all
proposals specify the;
i.
number
of required personnel;
ii.
rates
of remuneration; and
iii.
duration
of employment of any proposed officials.
b)
all relevant revenue implications have
been described, quantified and included in the estimates of receipts; and
c)
detail of non-salary expenditure have
been specified under relevant heads as per the classification structure of
Chart of Accounts.
2)
Drawing and Disbursing Officers shall
forward the estimates of new expenditure separately to the Head of Offices
along with the current budget.
3)
In submitting proposals for new
expenditure administrative difficulties and delays in sanctioning processes
should always be borne in mind and no such sums should be recommended for
provision in the budget than is likely to be incurred during the course of the
financial year.
PART VII
PROCESSING OF DEVELOPMENT
PROJECTS
32)
Development Projects-
1)
A development project is a scheme or
activity provided within a development expenditure grant included in the
Schedule of Authorised Expenditure and required to be prepared on the Form
BDD-4.
2)
Development
projects shall have-
a)
a
finite project life;
b)
a
nominated project manager;
c)
a
specified source of funding;
d)
an
approved project plan and budget; and
e)
specified
deliverables.
3) All
development project expenditure shall be recorded in the District Fund of the
District Government.
4)
Development expenditure out of revenue
account shall be distinguished from development expenditure out of capital
account.
5)
Each development project shall be
classified according to the elements contained in the Chart of Accounts with a
unique code assigned to each development project.
33)
Processing of Development Projects-
1)
The
development projects shall be processed as follows-
a)
identification of development proposal,
based on the evidence of peoples’ needs, especially women and marginalized
communities and consistent with the District Development Plans or any other
duly approved district-based developmental vision document;
b)
preparation
of project outline by concerned Office;
c)
approval of development project outline
by the District Development Committee;
d)
preparation
of detailed development project proposal;
e)
preparation
of technical sanction for development projects involving works;
f)
approval
by the District Development Committee;
g)
issuance
of Administrative Approval and Technical Sanction;
h)
inclusion
in Annual Development Programme and District Development Plan;
i)
approval
by the District Council.
34)
Role of the Nazim of District Government-
1)
The
Nazim of District Government shall-
a)
provide vision for district-wide
development, leadership and direction for efficient functioning of district
government;
b)
develop strategies and timeframe for
accomplishment of goals approved by district council;
c)
oversee
formulation and execution of the annual development plan;
d)
interact
with the stakeholders to assess their needs;
e)
encourage the community participation and
public private partnership in the development activities and ensure that such
projects are given priority;
f)
oversee
the preparation of development project proposals;
g)
ensure that all development project
proposals are feasible, sustainable and in line with the priorities set by the
District Council; and
h)
review progress of development projects
and ensure timely completion of development projects.
35)
Identification of Development Projects-
1) The identification of development projects
shall be through a bottom up (top down) planning approach based on robust needs
identification exercise with greater community participation, including women
and marginalized groups;
2)
The project proposals received during
the year from various stakeholders shall be scrutinized by the concerned Head
of Offices.
3)
All Heads of offices shall submit the
outline of new development project proposals to the District Development
Committee through the Deputy District Officer Planning for approval and further
processing. The new development projects shall be based on the detailed plans
prepared by the respective Head of Offices as specified in Rule 22.
36)
Approval by District Development Committee-
1)
The District Development Committee shall
review the outline of the new development project proposal received from the
concerned office and give approval for the preparation of detailed development
project proposals which have been cleared by the District Development
Committee.
2)
The concerned office after receiving the
approval by the District Development Committee shall initiate the process of
preparing the detailed development project proposal on Form BDD-4.
3)
The detailed development project
proposal on completion by Head of Offices shall be submitted to the Deputy
District Officer Planning.
4)
The Deputy District Officer Planning
shall frame a working paper on the basis of the information examining the
financial, economic and environmental viability of each development project.
5)
The working paper along with a copy of
the detailed proposal shall be circulated among members of the District
Development Committee by the Deputy District Officer Planning.
6)
The District Development Committee shall
review the development project proposal and its decisions shall be recorded for
each development project proposal.
7)
The District Development Committee shall
be competent to approve projects up to a cost as prescribed by the Government.
8)
The District Development Committee shall
not be competent to approve any subsidy project or project involving external
funding like foreign aid, Provincial Annual Development Programme or Federal
Public Sector Development Programme, unless provided in any other government
policy.
9)
The District Development Committee shall
ensure to approve only such project proposals having completion period of-
a)
one
year. for building and infrastructure projects;
b)
nine
months for roads projects; and
c)
six
months for any others projects
10) The
District Development Committee shall allow time extension or revision of
project only once during the currency of the project in case of exceptional or
unavoidable circumstances.
11) A
copy of the development project proposal approved by the District Development
Committee shall be submitted to the District Council for information.
37)
Approval-
1)
After the District Development Committee
has approved the development project proposal, the Deputy Commissioner shall
convey the Approval on behalf of the respective Committee.
2)
Only the development projects approved
by the District Development Committee shall be considered for inclusion in the
Annual Development Programme.
38)
Revision in Development Project Proposals-
1)
The upward revision of cost, or a major
change in the objective or scope of a development project shall require the
approval of the District Council.
2)
The revision within the cost approved by
the District Council shall be approved by the District Development Committee.
The District Development Committee shall ensure that the objectives and scope
are not altered.
39)
Completion of Ongoing Development Projects-
1)
An on-going development project approved
by the District Council shall be funded and completed as approved.
40)
Development Projects involving Works-
1)
The development project proposal
relating to works submitted to the District Development Committee for
Administrative Approval shall be accompanied by a preliminary report, a rough
cost estimate, preliminary plans, information to the site and other details as
may be necessary to fully elucidate the proposals. The estimates and
preliminary plans should be obtained from the concerned office dealing with
works.
2)
For every work proposed to be carried
out, except petty works and repairs a properly detailed estimate must be
prepared for the sanction of the competent authority. This sanction is known as
the "Technical Sanction" to the estimate. Such sanction shall only be
accorded by the officials in accordance with the powers delegated to them.
3)
Technical
sanction shall be issued within one month after approval of PC-I.
4)
Cost
the Technical sanction in no case shall exceed the administrative approval
cost.
5)
In cases in which it becomes apparent
during the execution of the work that the amount administratively approved or
the amount of technical sanction is likely to exceed beyond the limit of
approval, the approval of the District Council shall be obtained.
PART VIII
DEVELOPMENT BUDGET AND ANNUAL
DEVELOPMENT
PROGRAMME
41)
Annual Development Programme-
1)
The Annual Development Programme shall
be a compilation of the development projects including the communities and
public private partnership projects, approved by the District Council.
2)
The Annual Development Programme shall
be submitted as part of the budget documents.
3)
The
following provisions shall apply to the Annual Development Programme-
a)
in pursuance to Section 53 of the Act,
the Provincial Finance Commission shall determine the share of each district
out of the Provincial Consolidated Fund duly indicating the development grants
to be distributed;
b)
the ADP shall be formulated within the
ceilings communicated by the District Officer Finance and Planning and the
Deputy District Officer Planning with projections for two outer years based on
the District Development Plan, to be updated annually on rolling basis;
c)
strict compliance to the guidelines
provided in the ADP guidelines by the Deputy District Officer Planning shall be
ensured by the Head of Offices;
d)
the process for compilation of ADP both
at the level of District Office Finance and Planning and the Heads of Offices
in a way to ensure the linkage of District Government policies and priorities –
to be not inconsistent with provincial sector policies and priorities - with
annual budgeting through greater integration of current and development budget;
e)
no liabilities of development projects
completed from the Provincial ADP or any other federal programme shall be
charged to the District ADP;
f)
the
key priority sectors for allocation of funds under District ADP shall be;
i.
education
with a focus on girls education;
ii.
roads;
iii.
health
with a focus on maternal and child health; and
iv.
drinking
water supply and sanitation.
g)
responsibilities and funds of on-going
schemes under the Provincial ADP, falling within the mandate of the District
Government can be transferred to it with a condition that they shall be duty
bound to complete the same as per specifications and approved scope of work.
42)
Classification of Annual Development
Programme-
1)
The Annual Development Programme shall
classify projects by sector, function and geographic location.
2)
The Annual Development Programme shall
indicate new development projects and ongoing development projects separately.
43)
Source of Funding-
1)
Main
sources of funding for the new development projects shall be-
a)
total receipts of the district
government less current expenditure, on-going expenditure of development
projects and other liabilities; and
b)
financial assistance received by way of
development grants from the Government.
44)
Phasing of ADP-
1)
The development projects shall be
completed within the stipulated time period with no throw forward liabilities.
2)
In exceptional circumstances a project
may be phased over two financial years as per Rule 34 of these rules;
3)
Multi-year planning shall reflect and
cater for the operation and maintenance costs of completed development projects
and shall ensure that such costs are budgeted.
4)
Annual priorities in various sectors
shall be set up by the District Government and approved by the District
Council.
5)
The formulation of ADP must follow the
budget calendar as circulated by the District Officer Finance and Planning
along with the Budget Call Circular.
6)
All the
Provincial and Federal
Governments’ funded projects
like District
Development Initiatives, Priority Projects, Member
National Assembly or Senators’ Funds, and Prime Minister or President or Chief
Minister Directives etc. shall be duly reflected in the ADP and budgeted.
45)
Prioritizing Development Projects for inclusion in
ADP-
1)
For the District Government initiated
development projects each Head of Offices shall select development projects for
inclusion in the Annual Development Programme from the development projects
processed by the District Development Committee pertaining to his offices and
forward their details to the Deputy District Officer Planning in Forms BDD-1 to
3. The development projects recommended by the Head of Offices shall be in line
with the budget guidelines included in the Budget Call Circular, ADP Guidelines
and the detailed operational plans of the respective Offices under the
administrative control of the Head of Offices.
46)
Approval by the District Development
Committee-
1)
The Deputy District Officer Planning
shall frame a working paper on the basis of the information provided by each
Head of offices.
2)
The working paper shall then be
circulated among members of the District Development Committee.
3)
The District Development Committee shall
approve the development projects to be included in the Annual Development
Programme while remaining within the fiscal space available
and keeping in view the detailed plans submitted by the Head of Offices.
4)
The decisions of the District
Development Committee shall be recorded for each development project proposal.
5)
After approval by the District
Development Committee, the Annual Development Programme shall be incorporated
into the budget documents by the District Officer Finance and Planning.
6)
After approval of the budget by the
District Council, the approved Annual Development Programme shall be circulated
to the concerned Offices by the Deputy District Officer Planning.
47)
Monitoring of Development Projects Execution-
1)
Expenditure can be incurred only on
development projects for which Administrative Approval and Technical sanction
(for works) has been accorded and the development project has been included in
the budget and has been approved by the District Council.
2)
Key Performance Indicators and Targets
duly disaggregated gender wise shall be set as per the priorities set in the
District Development Plan and the outcomes and outputs established in the
budget by the Head of Offices.
3)
The respective executing agency shall be
responsible for the execution of the development projects as per parameters
fixed in the approved PC-I and as per provisions of the rules or instructions
relevant to the respective executing agency. Additionally, the executing agency
shall be rigorously following the PC-III format of monitoring the development
projects.
4)
Monitoring of projects shall be made by
community, elected representatives, District Deputy District Officer Planning
as internal monitoring and the PROVINCIAL Planning Department through
Divisional Directorate of Monitoring and Evaluation as external monitoring.
5)
For development projects under
execution, the executing agency shall send monthly progress reports in the
prescribed Form BM-5 and BM-7 to the Deputy District
Officer Planning and District Officer Finance and
Planning, and the Monitoring Committee by 10th
of each succeeding month. For projects in far flung areas pictorial data shall
also be provided. Such reports, where possible, shall also include gender and
marginalized groups disaggregated data to understand and track allocations and
utilization of funds for women, girls and marginalized groups.
6)
The District Development Committee shall
hold quarterly reviews and annual review to monitor the progress of the
projects. The results of such review shall be submitted to the Divisional
Commissioner for information and the Nazim District Government for submission
to the District Council.
7)
The Nazim District Government shall hold
periodic progress review of the financial as well as physical progress of the
development projects.
8)
The concerned Commissioner through its
Divisional Monitoring and Evaluation setup shall monitor at least 25 percent of
the projects in District.
9) The
Nazim District Government and Deputy Commissioner each shall visit not less
than 10 percent of the projects being funded through District ADP, while Head
of Offices shall visit at least 70 percent of the projects.
10) The
Heads of Offices shall be bound to furnish financial and physical progress of
projects regularly on monthly basis to the Deputy District Officer Planning for
periodic review of the Nazim District Government.
11) The
Deputy District Officer Planning shall visit regularly major development projects.
The inspection reports shall be discussed in the periodic review meetings. A
copy of such reports shall invariably be sent to the Provincial Planning and
Development Department along with recommended actions.
12) Third Party
Validation shall be undertaken where required.
13) PC-IV
signed by the Head of Offices shall be mandatory for all the projects whereas
PC-V shall be prepared for mega projects.
14) The
impact evaluation of important ongoing or completed development projects shall
be conducted by the Deputy Commissioner and the Provincial Planning and
Development Department.
48)
Development Projects Completion-
1)
On development project completion, a project
handing over or taking over report shall be submitted by the concerned Head of
Offices to the Deputy District Officer Planning and a copy provided to the
District Development Committee, District Officer Finance and Planning and a
copy shall be provided to the District Council.
49)
Post Completion-
1)
Post completion evaluation of each
development project shall be undertaken jointly by the Deputy District Officer
Planning in collaboration with concerned Head of Offices and a report submitted
to the District Council.
50)
Flow-on Effect to Current Budget-
1)
The Heads of Offices, Deputy District
Officer Planning and District Development Committee shall ensure that-
a)
details of the recurring expenditure of
each development project expected to be completed in the next financial year is
communicated to the District Officer Finance and Planning; and
b)
the recurring liability is included in
the current budget and Statement of New Expenditure for the next financial
year.
PART IX
INTEGRATED MULTIYEAR PLANNING AND
BUDGETING
51)
Multi-Year Planning-
1)
Each District Government shall develop a
medium term District Development Plan. The Nazim District Government shall
provide vision to the District Government outlined in the District Development
Plan.
2)
The Annual Development Programme
formulated each year shall be in line with the policy objectives of entailed in
the District Development Plan and National or Provincial Sectoral policies and
priorities, as the case may be.
3)
The Multi-Year Planning shall be based
on a robust fiscal framework for determination of fiscal space requiring the
most realistic-
a)
future
revenue prospects; and
b)
future
expenditure.
4)
The medium term shall be for a period of
three years, including ensuing financial year and two outer years. The
projections for the outer years shall be updated each year on a rolling basis
to accommodate any changes.
52)
Fiscal Framework-
1)
The resources made available to the
District Government through fiscal transfers from the Provincial Government
shall comprise share of receipts of the concerned local government and shall
constitute part of the District Fund.
2)
The
share of each District Government shall be in accordance with the PFC Award.
3)
The Provincial Finance Department shall
communicate the preliminary estimates of the respective District Government
share as per the stipulated timeframe in the Provincial Budget Call Circular.
4)
The Provincial Finance Department shall
communicate the final estimates of District Government share in June each year.
5)
The
projections on account of revenue and receipts shall be-
a)
computed by analysing the growth trend
of the revenue items during previous financial years;
b)
adjusted by taking into account the
change in local economic conditions and likely policy initiatives; and
6)
The
projections on account of expenditure shall be computed with regard to-
a)
the
effect of inflation;
b)
annual
increase in the pay of the establishment;
c)
expansion
programs of the current services;
d)
impact of currently undertaken
development projects upon recurrent expenditure;
e)
anticipated savings on account of
improved efficiency; and
f)
relevant
policy decisions.
7)
In
order to enhance the fiscal space, the District Government shall-
a)
identify
new sources of revenue;
b) detect
and stop leakages of revenues from sources under their administrative control
or supervision;
c)
review
and, if required, adjust user charges, fee and rates etc.;
d)
review
establishment costs;
e)
restructure
activities to maximize efficiency and effectiveness; and
f)
encourage local contributions in
development efforts by effective utilization of funds through the community
participation and public private partnership.
8)
Form
BMP-2 shall be used for the projections of revenue and receipts.
9)
Forms
BMP-3 and BMP-4 shall be used for the projections of expenditure.
53)
Performance Framework-
1)
Each Head of Offices shall develop key
performance indicators to measure progress against the attainment of policy
objectives. These indicators shall be-
a)
specific;
b)
measurable;
c)
achievable;
d)
relevant;
e)
time
bound; and
f)
framed against key processes and outputs
depicting both the qualitative and quantitative aspects of performance.
2)
The District Development Committee shall
finalize with each Head of Offices their intended performance targets against
each of the key performance indicator for the medium term. Such mutually agreed
performance targets shall be prepared on Forms BSF-2 and BSF-3.
3)
The
performance targets shall be-
a)
clear,
precise and unambiguous;
b)
relevant;
and
c)
verifiable.
4)
The status of Performance Targets
achieved shall be provided regularly during the year through Forms BM-8 and
BM-9.
54)
Institutional Framework for Integration-
1)
In order to ensure greater integration,
coordination and harmony throughout the process of budget formulation, each
Head of Offices under his chair shall constitute an internal core group having
representation from;
a)
budget
wing;
b)
planning
wing;
c)
Drawing
and Disbursing Officers;
d)
Management
Information System wing; and
e)
Monitoring
and Evaluation wing.
2)
The
internal core group of each district office shall have the following functions-
a)
serve as a platform for greater
coordination between the various functional units of the department;
b) ensure
prompt and timely actions in the process of preparing budget in the light of
Budget Call Circular and ADP Guidelines;
c)
provide
overall supervision and guidance throughout the budget cycle;
d)
approve the annual business plan and
input for the formulation of District Development Plan;
e)
internal approval of its Goal(s),
Outcomes, Outputs, Key Performance Indicators and Targets for submission to the
District Development Committee;
f)
continuous
monitoring of budget execution
g)
liaison and closer coordination with
District Officer Finance and Planning and Deputy District Officer Planning on
all issues relating to the budget and planning functions; and
h)
ensure an effective system of Monitoring
& Evaluation with timely reporting of performance information targets on
monthly basis.
3)
The District Officer Finance and
Planning shall ensure appropriate institutional mechanisms for integration of
current and development budget at the district level.
PART X
BUDGET PRESENTATION TO
THE DISTRICT COUNCIL
55)
Budget Documents- (last year budget numbers)
1)
The District Officer Finance and
Planning shall for the District Council prepare the budget documents specified
below-
a)
Budget
speech of the Nazim;
b)
Annual
Budget Statement;
c)
Budget
Salient Features;
d)
Estimates
of Receipts;
e)
Demands
for Grants (Current expenditure);
f)
Demands
for Grants (Development expenditure);
g)
Statement
of New Expenditure;
h)
Annual
Development Programme;
i)
Citizens’ Budget; and
j)
Supplementary
Budget for current year if required.
2)
The formats of the budget documents are
provided in the First Schedule, while a brief description follows.
56)
Budget Speech-
1)
The Budget Speech of the Nazim District
Government shall include the main features of the budget.
57)
Annual Budget Statement-
1)
The Annual Budget Statement shall
include details of receipts and expenditure. The following shall be included in
the Annual Budget Statement (ABS)-
a)
Financial
Abstract;
b)
Details
of Receipts;
c)
Details
of expenditure;
d)
Details
of Current expenditure by detailed function and major objects;
e)
Details
of Public Account Receipts and Disbursement; and
f)
Function
wise Development expenditure.
2)
The
Annual Budget Statement shall be submitted on Form ABS.
58)
Budget Salient Features-
1)
The Budget Salient Features shall
provide a brief description of the main features of each office and also
include performance targets, service delivery facilities, policies and plans of
the various offices.
2)
The
salient features of each office shall be provided in Form BSF-1.
3)
The
performance targets shall be provided in Form BSF–2.
4)
The
status of service delivery facilities shall be provided in Form BSF-3.
59)
Estimates of Receipts-
1)
The
estimates of receipts shall be prepared and consolidated pursuant to Part IV.
2)
The
estimates of receipts and other details shall be provided on Forms BDR 1 to 5.
60)
Demands for Grants (Current Expenditure)-
1)
The Demands for Grants for current
expenditure shall include estimates of total current expenditure and shall be
prepared pursuant to Part V.
2)
The “Demand for Grants (Current
expenditure)”and other details shall be provided in Forms BDC 1 to 7.
3)
Other forms may be developed by the
District Government for providing additional budgetary information.
61)
Demands for Grants (Development
Expenditure)-
1)
The Demands for Grants and appropriation
for development shall include the estimate of ongoing and new development
projects. It shall be prepared pursuant to Part VII, VIII and IX.
2)
The Demand for Grants (Development
expenditure)” and other details shall be provided in Forms BDD 1 to 3.
62)
Statement of New Expenditure-
1)
The estimates of new expenditure
relating to current budget shall be provided separately as well, and prepared
pursuant to Part V and VI.
2)
The Schedules and explanatory notes
relating to the “Statement of New Expenditure” shall be provided in Forms BDC 1
to 7.
63)
The Annual Development Programme-
1)
The Annual Development Programme shall
be formulated as prescribed in Part VII, VIII and IX and include details of
each development project. It shall be an explanatory document to the Demands
for Grants (Development).
2)
The
Annual development Program shall be provided in Form BDD-3.
64)
The Citizens’ Budget-
1)
Citizens’ Budget in local languages
shall be developed by the District Officer Finance and Planning for greater
budget transparency and shall make it public through a mix of communication
media.
2)
The Citizens’ Budget shall be a
non-technical compilation of the budget for a layman and shall be developed on
the forms to be devised by the District Government.
3)
Guidelines and instructions of the
Provincial Finance Department regarding implementation roadmap of improved
budget transparency measures shall be adhere to by the District Government.
65)
Supplementary Budget-
1)
A Supplementary Budget based on the
Statement of Excess and Surrenders and Revised Estimates shall also be
submitted along with the other budget documents if required.
2)
The supplementary budget shall be
presented in the same form and manner as that of the annual budget.
66)
Presentation to the District Council-
1)
The
budget documents shall be laid before the District Council for approval.
2)
The District Council may refer the
budget documents to the Finance Committee constituted by the District Council.
The Committee shall perform the following functions-
a)
scrutiny
of receipts;
b)
scrutiny
of expenditure;
c)
examination
of new proposals for taxation; and
d)
make
recommendations to the District Council.
3)
No Demand for Grant shall be made to the
District Council except on the recommendation of the Nazim.
4) The
closing balance of the District Government shall not be allowed to fall below
5% of the total receipts (excluding those of the public account) anticipated
for the year. For the purpose of this Rule the investments if any made out of
the District Fund shall be deemed to be a part of the closing balance.
5)
No lump sum provisions shall be made in
the budget the details of which cannot be explained.
6)
A budget shall not be approved by the
District Council if the receipts do not match the proposed expenditure.
67)
Authenticated Schedule of Authorized Expenditure-
1)
Following approval by the District
Council of the Annual Budget Statement in respect of the next financial year,
the District Officer Finance and Planning shall-
a)
prepare
a Schedule of Authorized Expenditure;
b)
procure the authentication of the Nazim
for the Schedule mentioned in Sub-Rule (a) above;
c)
Schedule of Authorized Expenditure shall
be prepared in the same form as the Annual Budget Statement;
d)
the Schedule authenticated by the Nazim
shall be laid before the District Council, but shall not be open to discussion
or vote thereon; and
e)
The Schedule of Authorized Expenditure
shall lapse at the end of the financial year.
2)
In case of removal or dismissal of the
District Council, the budget shall be approved by the Government.
68)
Communication and Distribution of Grants-
1)
The District Officer Finance and
Planning shall intimate the details of the sums authorized in the Schedule of
Authorized Expenditure for that financial year to;
a)
Head
of Offices;
b)
Drawing
and Disbursing Officers; and
c)
District
Accounts Officer.
2)
A copy of the budget documents shall be
supplied to the Government, Provincial Finance Commission and Local Government
Commission. A copy shall be provided to other local governments in the District
if requested by them.
3)
The Citizens’ Budget shall be made
public widely through the official web portals of district offices and other
media (print and electronic).
4)
The revenue targets approved by the
District Council shall be forwarded by the District Officer Finance and
Planning to;
a)
Head
of Offices; and
b)
Collecting
Officers.
5)
The District Officer Finance and
Planning shall instantly upload details of the sums authorized in the Schedule
of Authorized Expenditure for that financial year at the level of Drawing and
Disbursing Officers in the online-real-time Integrated Financial Management
Information System.
6) The
District Officer Finance and Planning shall upon receipt of funds from the
Government in Account – IV, release within three days the funds so received,
through the online-real-time Integrated Financial Management Information System
for utilization by the respective Heads of Offices and the Drawing and
Disbursing Officers after completion of all formalities as required under the
relevant rules.
PART XI
REVENUE AND RECEIPTS MANAGEMENT
69)
Revenue and Receipts Management-
1)
The primary obligation of the Collecting
Officers shall be to ensure that all revenue due is claimed, realized and
credited immediately into the District Fund under the proper receipt head.
2)
Guiding
principles while receiving money on behalf of the government shall be-
a)
public money shall in so far as possible
be deposited directly in the bank through prescribed Challan forms on the same
day but not later than the close of following day;
b)
all public money received must be duly
receipted on sequentially numbered printed receipts Form T.R. 5. As per the
Treasury Rules these receipt books must be kept under lock and key in the
personal custody of the officer authorized to sign the receipt on behalf of the
District Government. Similarly, before a receipt book is brought into use, the
number of forms contained therein shall be counted and the result recorded in a
conspicuous place in the book over the signature of an officer in charge of the
book. Counterfoils of used receipt books shall be kept in his personal custody;
c)
money
received shall not be rotated through a number of hands unnecessarily;
d)
monthly reconciliation with the Treasury
or DAO, as the case may be, shall be carried out by the district offices;
e)
public money and private money shall be
kept separately. A Government Officer who handles Government money should not,
except with the special sanction of the Head of offices, be allowed to handle
also in his official capacity money which does not belong to the District
Government;
f)
for opening of bank accounts for public
money prior sanction of the District Officer Finance and Planning is mandatory.
Separate bank accounts can be opened for private money without the prior
approval of District Officer Finance and Planning;
g)
In order to ensure proper accounting and
reporting of government revenues or receipts, money tendered must be recorded under
proper head of accounts as per the Chart of Accounts. All Challan forms as per
the practice in vogue first need to be verified by the Treasury Office or DAO,
as a pre-requisite;
h)
DDO Codes on Challan Forms shall
invariably be used to ensure the proper reporting of revenues or receipts at
the district office level;
i)
The district offices need to thoroughly
check the Monthly Revenue Confirmation Statement as generated by the District
Accounts Offices and ensure the earliest resolution of discrepancies.
3)
The Head of the Offices shall supervise
and take corrective measures in respect of the activities of the Collecting
Officers.
4)
The District Officer Finance and
Planning shall ensure that all public money is duly recorded in the
online-real-time Integrated Financial Management Information System.
70)
Monthly Statement of Receipts-
1)
The Collecting Officers shall reconcile
his figures with the record maintained by the District Accounts Officer by the
10th day of the month following the month to which the statement relates.
2)
The Collecting Officers shall furnish
monthly reconciled statements of actual collections under the heads for which
they are responsible to the Head of Offices in Forms BM-3 and BM-4 by 15th day
of the month following the month to which the statement relates.
3)
The Head of Offices shall consolidate
the figures received from different Collecting Officers and cross check with
statements confirming the actual amounts credited under the relevant receipt
heads.as received from the District Accounts Office.
4)
In the event that any error in recording
of receipts is discovered the return shall be corrected and intimation shall
immediately be sent to the District Accounts Officer for rectification.
5)
In the event of any error detected in
the office of the District Accounts Officer, it shall forward the details to
the Head of Offices and relevant Collecting Officer.
71)
Prompt Deposit of Receipts-
1)
The receipts for a month shall be the
figures of the receipts actually realized and credited during that particular
month.
2)
In the event that any money is realized
in one month but not credited until the subsequent month except that relating
to the last working day of a calendar month, the facts and circumstances shall
be clearly stated in the monthly report in which the receipts were realized.
3)
The sanction of the competent authority
is necessary for the remission of, and abandonment of claims to revenue.
72)
Monthly Report of Receipts-
1)
The District Government shall submit a
monthly report to the District Council relating to the receipts received during
the month.
2)
The
monthly financial report relating to receipts shall include the following
Forms-
a)
BM-3
- Monthly Statement of Receipts; and
b)
BM-4
- Monthly Reconciliation of Receipts.
73)
Role of Districts Accounts Committee-
1)
The Principal Accounting Officer (PAO)
shall be responsible for resolving Audit paras relating to receipts.
2)
The District Accounts Committee of the
District Council shall monitor the receipts during the financial year.
3)
The District Accounts Committee shall
especially focus on the reconciliation of receipts and realization of monthly
targets.
4)
The Head of Offices shall be responsible
to the District Accounts Committee of the District Council for issues relating
to receipts.
PART XII
EXPENDITURE MANAGEMENT
74)
Standards of Financial Propriety-
1)
Every officer incurring or authorizing
expenditure from district fund shall be guided by high standards of financial
propriety. Among the principles on which generally greater emphasis is laid are
the following-
a)
Every public officer is expected to
exercise the same vigilance in respect of expenditure incurred from public
moneys as a person of ordinary prudence would exercise in respect of
expenditure of his own money;
b)
The
expenditure should not be prima facie more than the occasion demands;
c)
No authority should exercise its powers
of sanctioning expenditure to pass an order which will be directly or
indirectly to its own advantage;
d)
Public moneys should not be utilized for
the benefit of a particular person or section of the community unless the
amount of expenditure involved is insignificant or-
i.
a
claim for the amount could be enforced in a court of law; or
ii.
the
expenditure is in pursuance of a recognized policy or custom.
e)
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 recipients.
75)
Key Controls for Expenditure
Management-
1)
As a general rule no authority may incur
any expenditure or enter into any liability involving expenditure from District
Fund until the expenditure has been sanctioned by general or special orders of
the Nazim District Government and the expenditure has been provided for in the
authorized grants and appropriations for the year.
2)
Each Head of Offices is responsible for
enforcing financial order and strict economy at every step. He is responsible
for observance of all relevant financial rules and regulations both by his own
office and by subordinate disbursing officers.
3) The total
expenditure shall be kept within the limits of the authorized appropriations.
4)
It shall be ensured that the funds
allotted to spending units are expended in the public interest and upon objects
for which the money was provided.
5)
Proper control for reporting not only of
what has actually been spent from an appropriation but also what commitments
and liabilities have been and will be incurred against it.
6)
Systematic internal checks calculated to
prevent and detect errors and irregularities in the financial proceedings and
to guard against waste and loss of public money and stores.
7)
Delay in the payment of money
indisputably due from Government is contrary to all rules and budgetary
principles and should be avoided.
8)
The following provisions shall be
complied with respect to the procurement of stores and stock-
a)
purchases must be made in the most
economical manner in accordance with the definite requirements of the public
service.
b)
purchase Orders should not be split up
to avoid the necessity for obtaining the sanction of higher authority required
with reference to the total amount of the orders.
c)
all materials received should be
examined, counted, measured or weighed as the case may be, when delivery is
taken, and they should be taken in charge by a responsible Government officer
who should see that the quantities are correct and their quality good, and
record a certificate to that effect, and entered into stock register
d)
when materials are issued from stock for
departmental use, manufacture, sale, etc., the officer in charge of the stores
should see that an indent in the prescribed form has been made by a properly
authorized person, examine it carefully with reference to the orders or
instructions for the issue of stores and sign it; if he is unable to comply
with the requisition in full, he should make suitable alterations under his
dated initials in the description and quantity of material.
e)
safe custody, for keeping stores in good
and efficient condition and for protecting them from damage or deterioration.
f)
an inventory of the dead stock should be
maintained in all District Offices in a form prescribed by competent authority,
showing the number received, the number disposed of (by transfer, sale loss
etc.) , and the balance in hand for each kind of article.
g)
physical
verification of stores shall not be entrusted to a person-
i.
who is the custodian, the ledger keeper,
or the accountant of stores to be verified, or who is a nominee of, or is
employed under the custodian, the ledger keeper or the accountant ;or has a
conflict of interest with the job; or
ii.
who is not conversant with the
classification, nomenclature and technique of the particular classes of stores
to be verified.
h) a
prior sanction of competent authority should be obtained to the writing off of
all losses, deficiencies or depreciation in the value of stores.
9)
The
following provisions shall be complied with respect to the contract management-
a)
the terms of a contract must be precise
and definite and there must be no room for ambiguity or misconstruction
therein;
b)
as far as possible, legal and financial
advice should be taken in the drafting of contracts and before they are finally
entered into;
c)
standard forms of contracts should be
adopted wherever possible, the terms to be subject to adequate prior scrutiny;
d)
the terms of a contract once entered
into should not be materially varied without the previous consent of the
authority competent to enter into the contract. No payments to contractors by
way of compensation or otherwise outside the strict terms of the contract or in
excess of the contract rates may be authorized without the previous approval of
the competent authority;
e)
no contract involving an uncertain or
indefinite liability or any condition of an unusual character should be entered
into without the prior consent of the competent authority;
f)
whenever practicable and advantageous,
contracts should be placed only after tenders have been openly invited and, in
cases where the lowest tender is not accepted, reasons should be recorded;
g)
in selecting the tender to be accepted,
the financial status of the individuals and firms tendering must be taken into
consideration in addition to all other relevant factors; and
h)
provision must be made in contracts for
safeguarding Government property entrusted to a contractor.
76)
Role of Principal Accounting Officer-
1)
The Deputy Commissioner shall be the
Principal Accounting Officer of the District Government.
2)
The Principal Accounting Officer shall
have the following functions with respect to expenditure management of the
District Government-
a.
enforcing
financial order and strict economy at every step;
b.
observance of all relevant financial
rules and regulations both by his own office and by subordinate disbursing
officers;
c.
must see that the total expenditure is
kept within the limits of the authorized appropriation;
d.
must see that the funds allotted to
spending units are expended in the public interest and upon objects for which
the money was provided;
e.
must be in a position to assume before
District Government and Districts Accounts Committee, if necessary, complete
responsibility for departmental expenditure and to explain or justify any
instance of excess or financial irregularity that may be brought to notice as a
result of audit scrutiny or otherwise;
f. must
satisfy himself not only that adequate provisions exist within the district
offices for systematic internal check calculated to prevent and detect errors
and irregularities in the financial proceedings of its subordinate officers;
g.
to
guard against waste and loss of public money and stores;
h.
to
ensure that the prescribed checks are effectively applied;
i.
finance is an essential element in
policy questions and the Principal Accounting Officer shall ensure that
financial considerations are taken into account at all stages in framing and
implementing decisions;
j.
the two main principles for expenditure
management shall be to ensure economy (greater value for money) and regularity
(spending money for the purposed and in the manner prescribed by law and
rules);
k.
that
the flow of expenditure does not give rise to demand for additional funds;
l.
shall ensure that all district offices
regularly undertake monthly reconciliation of expenditure with the District
Accounts Officer and that it receives consolidated statement of monthly
expenditure duly reconciled;
m.
provide strategic guidance and oversight
on generation and publication of monthly budget execution reports by the
District Officer Finance and Planning; and
n.
instil institutional framework for
conducting expenditure review meetings at regular time period.
77)
Role of Head of Offices and DDOs-
1)
Shall be responsible for controlling and
managing expenditure from the Grants placed at their disposal.
2)
Scrutinize and consolidate the
anticipated savings in and excesses over grants and appropriations on a monthly
basis.
3)
Responsible for the monthly
reconciliation of expenditure with the District Accounts Officer.
4)
Ensure effective liaison and coordination
with the District Officer Finance and Planning and Deputy District Officer
Planning.
5)
Adherence to the key controls stipulated
in Rule 73 of these rules and other rules, regulations, policies and procedures
of the Government.
78)
Role of Districts Accounts
Committee-
1)
The District Accounts Committee of the
District Council shall monitor the budget during the financial year.
2)
The District Accounts Committee shall
review the monthly financial reports including the accounts report submitted by
the District Accounts Officer.
3)
The District Accounts Committee shall
especially focus on the reconciliation of expenditure.
4)
The Principal Accounting Officer and
Head of Offices shall be responsible to the District Accounts Committee of the
District Council for issues relating to expenditure.
79)
Steps for likely Excess Expenditure-
1)
In the event that a Grant is likely to
be exceeded, the Head of Offices shall take immediate steps to prevent the
excess expenditure by-
a)
ensuring
strict control over the affected Grant; or
b)
transferring
funds under his powers of Re-appropriation; and
c)
submitting as soon as the necessity
becomes definite, an application for Supplementary Grant.
2)
If funds cannot be provided through
re-appropriations than a Supplementary Grant shall be prepared and got approved
from the District Council before the additional expenditure is incurred. The
procedure for Re-appropriations and Supplementary Grants are provided in Part
XIII.
80)
Reconciliation of Expenditure-
1)
During the first week of each month, the
District Accounts Officer shall provide for the previous month, a schedule
showing the numbers, dates and amounts of vouchers paid during that month, and
supply copy of each such schedule to the concerned Drawing and Disbursing
Officer (DDO) and respective Head of Offices.
2)
Upon receipt of the schedule from the
District Accounts Officer, the Drawing and Disbursing Officer (DDO) shall-
a)
compare
such schedule with the statement prepared by him; and
b)
reconcile expenditure with District
Accounts Officer by 10th
of the month for the previous month or as prescribed.
3)
The respective Head of Offices, Drawing
and Disbursing Officer (DDO) and the District Accounts Officer shall be jointly
responsible for reconciling any differences and for correcting
misclassifications or any other errors.
4)
In case the reconciled statement is not
provided by the Head of Offices by the 20th
of the month to the District Officer Finance and Planning, following the month
to which the Accounts relate, no bills may be passed by the Accounts Officer
for the defaulting DDOs.
5)
The Drawing and Disbursing Officer (DDO)
shall provide a reconciled statement of expenditure not later than the 13th
day of the month following the month to which the accounts relate, to the
relevant Head of Offices in Form BM-1.
6)
If any Head of Offices has one or more
subordinate Drawing and Disbursing Officers (DDOs), such Head of Offices shall
consolidate the statements he receives from any such Drawing and Disbursing
Officers (DDOs).
7)
The Head of Offices shall forward the
consolidated statement of expenditure to the District Officer Finance and
Planning, so as to reach him by the 16th
day of the month following that to which the accounts relate.
81)
Monthly Reports of Expenditure-
1)
Each District Government shall submit a
monthly report to the District Council relating to the expenditure incurred
during the month.
2) The monthly
financial reports shall include the following BM Forms-
a)
BM-1
- Monthly Statement of Current expenditure;
b)
BM-2
- Monthly Reconciliation of Current expenditure;
c)
BM-3
- Monthly Statement of Receipts;
d)
BM-4
- Monthly Reconciliation of Receipts;
e)
(BM-5 - Monthly Progress Report
Development Programme - government Projects & Community Projects/Public
Private Partnership;
f)
BM-6
- Monthly Reconciliation of Development expenditure;
g)
BM-7
- Monthly Report- Operationalization of Projects;
h)
BM-8
- Service Delivery Targets;
i)
BM-9
- Service Delivery Facilities Status;
j)
BM-10
- Establishment Status by Designation;
k)
BM-11
- Monthly Statement of Re-appropriations of Funds;
l)
BM-12
- Statement of Supplementary Grants; and
m)
BM-13
- Statement of Excesses and Surrenders.
82)
Statement of Excesses and
Surrenders-
1)
The Statement of Excesses and Surrenders
shall be prepared in Form BM-13 by the Head of Offices after 8 months of the
financial year.
2)
For purposes of completing Form BM-13,
the Heads of Offices shall obtain the required information from the concerned
Drawing and Disbursing Officers (DDOs).
3)
Annually, one Statement of Excesses and
Surrenders shall be prepared and submitted by the Heads of Offices to the
District Officer Finance and Planning.
4)
The Statement of Excesses and Surrenders
shall be completed on the basis of actual expenditure incurred during the first
eight months of the financial year and keeping in view the expected expenditure
in the remaining four months of the financial year.
5)
The
Excesses and Surrenders shall form the basis for -
a)
preparing
the revised estimates; and
b)
formulating
the demands for additional funds if required.
6)
The revised estimates shall also be used
to form the basis of the following year budget estimates and for determining
the estimated closing balance of the District Fund.
7)
The Heads of Offices shall submit
together with the Statement of Excesses and Surrenders a note explaining the
reasons for the excesses and surrenders.
8)
The District Officer Finance and
Planning shall consolidate the Statements of Excesses and Surrenders for
approval by the District Council.
83)
Revised Estimates and Supplementary
Grants-
1)
In addition to any revisions during the
year the District Government shall after 8 months of the financial year prepare
revised estimates based on the Statement of Excesses and Surrenders.
2)
If additional funds, which cannot be met
through re-appropriation are identified for the remaining four months a
Supplementary Grant shall be submitted to the District Council for approval.
3) Subsequent
to approval by the District Council and intimation by the District Officer
Finance and Planning of the Supplementary Grant, the Heads of Offices concerned
shall distribute the Supplementary Grant and communicate the break-up of the
Grant to Drawing and Disbursing Officers and the District Accounts Officer concerned.
4)
The Collecting Officer shall also be
communicated the revised targets for receipt as approved by the District
Council.
PART XIII
REAPPROPRIATIONS AND
SUPPLEMENTARY GRANTS
84)
General Provision-
1)
In the event that unavoidable and
unforeseen circumstances arise during the course of any particular financial
year that requires incurring excess expenditure or expenditure not contemplated
in the Schedule of Authorized Expenditure, such expenditure shall be made
available through, re-appropriation or supplementary grants or both.
85)
Re-appropriations-
1)
Means the internal transfer of savings
from one object to other object(s) in the appropriations of the same unit to
meet anticipated excess expenditure in other object(s).
2)
The officials shall re-appropriate in
accordance with the re-appropriation powers delegated by the competent
authority to them.
3)
If any officer is competent to sanction
a re-appropriation, such officer may do so pursuant to the powers delegated to
him. A copy of the order sanctioning any re-appropriation shall be communicated
to the Head of Offices, District Officer Finance and Planning and the Districts
Accounts Officer.
4)
A request for re-appropriation shall be
prepared by the concerned Drawing and Disbursing Officer. If it involves
different Drawing and Disbursing Officers then the Head of offices shall
process the re-appropriation.
86)
Supplementary Grants-
1)
In case that a Head of Offices considers
that the need for additional funds has arisen for which no re-appropriation is
available. He shall submit a proposal for Supplementary Grant to the District
Council through the District Officer Finance and Planning.
2)
The proposal shall be accompanied by an
explanatory note justifying the Supplementary Grant.
3)
Requests for Supplementary Grant during
the financial year shall be consolidated by the District Officer Finance and
Planning in the form of a Supplementary Budget Statement. The same details
shall be included as in the annual budget and shall be furnished to the
District Council.
4) However,
the proposal for supplementary grant should be within budgetary cover or
available resource in respective District A/C-IV. Creation of supplementary
without budgetary cover or available resource will be treated as misconduct on
part of Principle Accounting Officer.
SECRETARY
GOVERNMENT OF KHYBER PAKHTUNKHWA
LOCAL GOVERNMENT ELECTIONS &
RURAL
DEVELOPMENT DEPARTMENT
