Sikkim Gram Panchayat (Financial) Rules, 2003

RURAL DEVELOPMENT DEPARTMENT

GOVERNMENT OF SIKKIM

GANGTOK, SIKKIM.

NOTIFICATION

No. 35(159)93-94/RDD/P-III/ 33. Dated: 10.07.2003.

In exercise of the powers conferred by Section 130 of the Sikkim Panchayat Act, 1993 (Act No.6 of 1993), the State Government hereby makes the following rules, namely: -

1.Short title and commencement.

(1) These rules may be called the Sikkim Gram Panchayat (Financial) Rules, 2003.

(2) They shall come into force at once.

2.Definition.

(1) In these rules, unless the context otherwise requires:-

(a) “Act” means the Sikkim Panchayat Act, 1993.

“Secretary” means the Secretary to the Govt. of Sikkim in the Rural

Development Department or any other Officer designated as such by the State Government.

(2) Words defined in the Sikkim Panchayat Act, 1993 but not defined in these rules shall have the same meaning as respectively assigned to them in the Sikkim Panchayat Act, 1993.

3.Establishment of Gram Panchayat Fund.

(1) The Gram Panchayat Fund established under sub-section (1) of section 39 of the Act shall be held in the Saving Bank Account with the State Bank of Sikkim or any other Nationalized Bank having its branch at the respective District Headquarter and also at Gangtok.

(2) All monies received by the Gram Panchayat from various sources as indicated at clause (a) to (g) of sub-section (1) of section 39 of the Act shall be deposited by the Sachiva in the Gram Panchayat Fund Account on the same day and entry made in the Cash Book as required under rule 4 of these rules.

Provided that where it is not possible to deposit the cash or cheque in the Gram Panchayat Fund account, the Sachiva shall keep the same under his safe custody and deposit the sums on the next working day in the Bank where such account is maintained.

Provided further that no sums in cash or cheque shall be kept without depositing the same in the account for more than three days without obtaining the approval of the Secretary, Rural Development Department.

(3) The Account shall be maintained in the name and style of “Gram Panchayat Fund” duly

prefixing the name of the Gram Panchayat and subject to the general control of the Sachiva

and jointly operated by the Sabhapati and the Sachiva.

(4) The Gram Panchayat may after passing a resolution and after taking into account the

liquidity position invests part or whole of the Gram Panchayat Fund in Government approved

securities and investments. Provided that the approval of the Secretary, Rural Development Department shall be obtained before such investment is made.

4.Maintenance of Cash Book.

(1) It shall be the responsibility of the Sachiva to ensure maintenance of Cash Book in the Form as specified in Schedule-A and its safe custody.

(2) All transactions shall be entered in the Cash Book as soon as they occur and in order of their occurrence. The pages of each book shall be numbered and the number of pages shall be certified by the Sachiva.

(3) All receipts and payments shall be duly supported by vouchers which shall be numbered and their number shall be recorded in the Cash Book. All receipts and payments vouchers shall be kept separately in order of its number.

(4) The Cash Book shall be closed.

(5) Erasure or over-writing of any entry in the Cash Book shall not be allowed. All incorrect entries shall be cancelled by drawing the pen across the incorrect entry and inserting the correct entry with the initials of the concerned official.

5.Reconciliation of balance.

(1) The Sachiva shall prepare the Bank Reconciliation Statement in the form given in Schedule-D on a monthly basis.

(2) In the event of non-reconciliation of the balance, the Sachiva shall bring this fact to the notice of the Sabhapati and the Secretary, Rural Development Department.

6.Procedure for drawal of money from the account.

(1) No money shall be drawn from the Bank unless it is required for immediate disbursement.

(2) All expenses and payment for which the fund is proposed to be withdrawn should be duly approved and sanctioned by the Secretary, Rural Development Department or by any Officer to whom such power has been delegated.

(3) All drawals shall be made through cheque only and after making the necessary entries in the Cash Book and recording the details of payment on the counterfoil of the cheque.

(4) A sum not exceeding Rs.500.00 (Rupees Five Hundred)only shall be kept as Imprest Fund with the Sachiva of the Gram Panchayat duly authorized by the Sabhapati.The total expenditure out of the Imprest Fund shall be accounted for on the last working day of the month and sum equal of the expenditure shall be transferred to the Imprest Fund so as to make the closing balance equal to the opening balance of the month. However, the total expenditure on such petty accounts shall not exceed Rs.2000.00 annually. An Imprest register shall be maintained for such Imprest Fund.

(5) For grants/funds released by the State/Central Government Utilization Certificate should invariably be submitted to the Department/agency releasing the grant with a copy to

the Secretary, Rural Development Department. Failure shall result in withholding of further grants/funds.

7. Preparation and maintenance of accounts.

(1) The accounts of the Gram Panchayat shall be maintained in the manner specified in these rules and in the forms set out in the Schedules appended herewith.

(2) It shall be mandatory for each Gram Panchayat to prepare and maintain the following books of accounts and statements in the prescribed forms as specified in the schedules appended to these rules:-

(a) Cash Book.

(b) Monthly Receipt & Payment Register.

(d) Monthly Reconciliation Statement.

(e) Inventory Register for Moveable Assets.

(f) Inventory Register for Immoveable Assets.

(g) Balance Sheet.

8. Preparation of annual budget & estimates of receipts & payments.

(1) Every Gram Panchayat shall prepare a budget of its estimated receipts and expenditure for the next financial year during the month of August each year in the form specified and appended to these rules and submit it to the Secretary, Rural Development Department, for its approval.

Provided that a copy of the estimate shall be submitted to the District Planning Committee, if the Committee has been constituted for the district.

(2) The State Government shall approve the budget of the Gram Panchayat, with or without modification and such approval shall be communicated to the Gram Panchayat and the District Planning

Committee, if constituted, before the commencement of the next financial year.

(3) No expenditure shall be incurred unless the budget is approved by the State Government.

(4) No re-appropriation shall be allowed without the approval of the State Government.

9. Authorities competent to sanction & incur expenditure & extent of their powers.

(1) The power to incur expenditure out of the provision made in the

approved budget and the extent of such power shall be in accordance with the delegation of financial powers specified in Schedule I.

(2) The Gram Panchayat shall discuss and approve any expenditure during its meetings held in accordance with Section 20 and transact its business in accordance with Section 22 of the Sikkim Panachayat Act, 1993. Sanction of an expenditure, if required, shall be by a resolution passed by the majority of the members.

(3) Notwithstanding anything contained in these rules, the State Government may confer on any authority specific power to incur expenditure on specific items and upon such conferment, the said authority shall exercise such power for specific purpose only.

10.Custody, preservation of books & records & procedures for destruction.

(1) The Sachiva shall ensure the safe custody of all books of accounts and records of the Gram Panchayat and shall produce them for inspection the auditors and any other officer/agency authorized by the Secretary.

(2) No books of accounts, vouchers or record shall be destroyed without the approval of the Secretary, Rural Development Department.

11.Audit of Accounts.

The Sabhapati shall produce or cause to be produced, to the auditor, all such accounts and related records of the funds of the Gram Panchayat concerned as may be required on behalf of the State Government and/or the Auditor General of India under section 20(1) of the Auditor General of India(Duties, Powers and Conditions of Service)Act,1971.

The Audit Report shall be placed before the Zilla Panchayat and the Gram Panchayat withen 30 days, if necessary, by calling a special meeting

12.Removal of doubt.

When doubt arises as to the interpretation of any provision of these rules, the matter shall be referred to the Secretary, Rural Development Department.

R.Ongmu,

Secretary to the Government of Sikkim,

Rural Development Department.

Schedule A

(see rule 4 & rule 7(2) (a))

CASH BOOK FOR THE MONTH OF…………………………….

CASH BOOK OF……………..................................................................GRAM PANCHAYAT …………………. DISTRICT

RECEIPT					DISBURSEMENT
Date	Receipt No/Bank Receipt No.	From whom received	Amount	Head of Account as per Budget Classification and brief particulars of receipt	Date	Voucher No./ Bill No.	To whom paid	Amount		Head of account as per Budget Classification and brief particulars of payment
								Cash	Cheque

Total receipt					Total Disbursement
To Opening Balance					By Closing Balance
Grand Total					Grand Total

Cashier Sachiva

Note: (1) Cash Book to be closed monthly on the last working day of the month.

(2) Certificate to the effect that “Closing Balance of the Cash physically verified and found to tally with the Closing Balance as per Cash Book” to be recorded by the Sachiva at the close of the month.

(3) All cheques received during the month but not remitted to Bank for credit in the Fund at the end of month should be shown under details of Closing Balance

SCHEDULE B

(see rule 7 (2) (b) )

MONTHLY RECEIPT AND PAYMENT ACCOUNTS

GRAM PANCHAYAT ……………………………………DISTRICT …………………FOR THE MONTH…………………….

RECEIPT				PAYMENT
Head of Accounts and brief particulars of receipt	Receipt up to the end of last month Rs.	Receipt during the month Rs	Receipt up to the end of this month Rs.	Head of Accounts and brief particulars of payment	Payment up to the end of last month Rs.	Payment during the month Rs.	Payment up to the end of this month Rs.
Opening Balance Cash in hand Cash at Bank Investment Revenue Account a)Tax Revenue b)Non-Tax Revenue Funds for Development Scheme/Programme Grants-in-Aid & Contribution Loans, Deposit & Advances Other Receipt				Closing Balance Cash in hand Cash at Bank Investment
Grand Total

SCHEDULE C

(see rule 7 (2) (c) )

ANNUAL RECEIPTS AND PAYMENTS ACCOUNT

GRAM PANCHAYAT …………………………………………… DISTRICT ……………………….. FOR THE MONTH OF ……………………………

RECEIPT				PAYMENT
Head of Accounts and brief particulars of receipt	Previous years receipt Rs.	Budget Estimate of receipt for the current year Rs	Current years receipt Rs.	Head of Accounts and brief particulars of payment	Previous years Expenditure Rs.	Budget Estimate of Expenditure for the current year Rs	Current year Expenditure Rs.
Opening Balance Cash in hand Cash at Bank Investment Revenue Account a) Tax Revenue b) Non-Tax Revenue Funds for Development Scheme/Programme Grants-in-Aid & Contribution Loans,Deposit & Advances Other Receipts				Closing Balance Cash in hand Cash at Bank Investment
Grand Total				Grand Total

SCHEDULE D

(see rule 5 and rule 7 (2) 9(d))

MONTHLY / QUARTERLY RECONCILIATION STATEMENT

GRAM PANCHAYAT ………………………… DISTRICT ………………….FOR THE MONTH OF ………………………….

Closing Balance as per Bank Pass Book	Amount (Rs.)
ADD Cheque received and entered in cash Book but not deposited to Bank Cheque issued but not encashed by Bank
DEDUCT Cheque /Cash deposited directly into Bank but not taken into Cash Book
CLOSING BALANCE AS DERIVED
BALANCE AS PER CASH BOOK
AMOUNT OF DIFFERENCE
DETAILS OF DIFFERENCE

DETAILS OF DIFFERENCE BETWEEN THE ACTUAL CASH BOOK BALANCE AND CASH BOOK BALANCE AS PER RECONCILIATION HAS BEEN PERSONALLY VERIFIED AND SATISFIED AND/OR FOLLOW UP ACTION HAS BEEN

INITIATED AND ALL CONCERNED AUTHORITIES INTIMATED.

CASHIER SACHIVA

SCHEDULE E

Inventory Register for Movable Assets of the ……………………………….Gram Panchayat.

Sl.

No.

Description of property

Location

Date of construction/

Purchase.

Cost of construction/

acquisition

Distinctive No.given to the asset.

Depreciation

Depreciated value(Book value after depreciation

Mode & date of disposal

Value realised

Remarks

SCHEDULE F

Inventory Register for Immovable Assets of the ……………………………….Gram Panchayat.

Sl.

No.

Discription of property

Location

Date of construction/

Purchase.

Cost of construction/

acquisition

No & date of order under which the property was purchased/

acquired/

transferred

Distinctive identification No given to the asset.

Depreciation

Depreciated value(Book a

value after depreciation)

Mode & date of disposal

Value realised

Remarks

Schedule G

Balance sheet as on……………………..of ……………………….Gram Panchayat

LIABILITIES			ASSETS
	Previous year’s account	Current year		Previous year’s account	Current year
Capital Deposit Loan & advances from Central/State Govt. Payables			Movable property Immovable property Loans & advances to staff Receivables Closing balance Cash balance Cash at Bank Investments
Grand total			Grand total

Capital would capture the difference of figure between Grand total of assets and total of liabilities.

Schedule H

(See rule 8)

Form for preparation of annual budget estimates.

RECEIPTS. AMOUNT.

I. Revenue:

A. Taxes.

(i) Taxes on melas, fairs & other entertainment.

(ii) Sanitary tax.

Water cess.
Fee for temporary erection.
Fee on private latrines.
Fee on grazing cattle.
Fee for registration of animals.
Market fees.
Fee on Dharamsalas, Rest-houses, Slaughter houses, etc.
Temporary tax for special works of utility.
Any other(specify).

B. Assigned Revenue.

C. Grants.

(i) Grants for general purpose.

(ii) Grants for specific purpose.

D. Other Sources.

(i) Interest.

(ii) Miscellaneous Income.

E. Funds for Development Schemes/Programmes.

II. Capital:

A. Loans.

B. Deposits.

EXPENDITURE.

A. Revenue Expenditure.

(i) Honorarium to Sabhapati, Up-Sabhapati &members.

(ii) TA to members.

Sitting fee to members.
Salaries & allowance to staff.
TA/DA to staff.

B. Office Expenses.

(i) Printing & Stationery.

(ii) Purchase of office equipment.

Telephone bills.
Electricity & water charges.
Publicity.

Schedule I

(See rule 9)

Delegation of powers.

Sl. No. Items of Expenditure Sabhapati Remarks

1. Office building:

(a) Rent Full powers Provided that the hiring of building has been approved by the Govt.

(b) Electricity & water charges - do - - do -

2. Furniture, fixture & office equipments:

(a) Purchase Upto Rs.500/- Not exceeding Rs.2,500/-p.a. subject to approval in the meeting of the Panchayat members convened under section 20.

(b) Repairs Upto Rs.250/- Subject to approval in the meeting of the Panchayat members convened under section 20.

3. Others:

(a) Purchase of books & periodicals Upto Rs.250/- - do -

(b) Purchase of crockery & cutlery - do - - do -

(d) Purchase of stationery - do - Subject to approval in the meeting of the Panchayat members convened under section 20.

(e) Advertisement & publicity - do - - do –

(f) Telephone installation & rental Actual amount Subject to approval of Secretary,RDD if it exceeds Rs.500/-

(g) Printing Upto Rs.250/- - do –

(h) Postage & telegraph - do - Subject of maximum of Rs.500/-.

4. Other contingent expenditure not Actual amount Subject to the approval of covered above. Secretary, RDD.

RURAL MANAGEMENT & DEVELOPMENT DEPARTMENT

GOVERNMENT OF SIKKIM

GANGTOK,SIKKIM

No.746/RM&DD. Dated.08.02.2005.

NOTIFICATION

In exercise of the powers conferred by section 130 of the Sikkim Panchayat Act,1993(6 of 1993),the State Government is pleased to make the following rules further to amend the Sikkim Gram Panchayat(Financial)Rules,2004,namely :-

1. Short title and commencement.

(1) These rules may be called the Sikkim Gram Panchayat (Financial) Amendment Rules,2004.

(2) They shall come into force at once.

2. Amendment of rule 6.

In the Sikkim Panchayat (Financial) Rules, 2004 (hereinafter referred to as the said rules), for sub-rule (2) of rule 6,the following shall be substituted, namely :-

“All expenses and payments from the Gram Panchayat Fund shall be in accordance with the approved budget of the Gram Panchayat and the delegation of powers under schedule - I ,appended to these rules.”

3. Amendment of rule 7.

In the said rules, in rule 7, after sub-rule (2),the following shall be inserted, namely :-

“(3) The Rural Development Assistant or any such Officer as may be appointed by the State Government for the purpose, shall assist the Sachiva in preparation and maintenance of accounts in the prescribed forms. All books of accounts, statements,

vouchers, registers, etc, relating to the operation of the Gram Panchayat Fund shall be kept in the custody of the Rural Development Assistant in the Gram Panchayat Office.”

V.B.Pathak, IAS,

Secretary to the Government of Sikkim,

Rural Management & Development Department.

Sikkim Local Fund Audit

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Sikkim Gram Panchayat (Financial) Rules, 2003

Sikkim Gram Panchayat (Financial) Rules, 2003

MONTHLY RECEIPT AND PAYMENT ACCOUNTS

Revenue Account

Other Receipt

Closing Balance

Opening Balance

Revenue Account

Other Receipts

Closing Balance

ADD

DEDUCT