Q: What are the principles of receipt of money in GFR?

Ans: GFR 4 to 8

Principles of Receipt of money:

The following are the principles laid down in GFR for receipt of money:

1. No Delay:
All monetary transactions should be brought to account without delay.
2. Dues etc. to be credited to public account:
Dues of the government or deposit money should be credited to the public account by depositing in
the bank/treasury.
3. Non-Government Dues:
Non-government dues should be kept separate from the government account deposited in state or
National Bank spent according to the rules. Moreover, all these accounts are subject to audit checks.
4. Revenues and other receipts:
For revenues and other receipts, it should be seen that they are correctly assessed, quickly realized
and immediately deposited into government treasury.
5. Withdrawal of money?
Money cannot be removed or withdrawn from the public account for investment or deposit
elsewhere without the consent of Finance Department.

Conditions for expenditures:

GFR-9 pertains to the conditions of expenditure:
No expenditure can be incurred unless sanction of the competent authority and budgetary provision is
made available.

Standards of financial propriety:

GFR-10 explains the standards of financial prosperity, which are as follows:
1. Vigilance:
Every public servant has to exercise the same vigilance as a man of ordinary prudence would
exercise in respect of his own money.
2. Expenditure according to the demand:
The expenditure should not be prima-facie more than the occasion demands.
3. Expenditure not for personal/any person’s benefit:
The public money should not be utilized for the benefit of a particular person or community.
4. No sanction for personal gain:
No authority should exercise its powers of sanctioning expenditure to pass an order which will
be directly or indirectly related to its own advantage.
5. Not a source of profit:
Allowance should be so regulated that it is not a source of profit to the recipient.
Control of Expenditure:
GFR-11 and 12 pertains to the control of expenditure. According to these rules, the heads of the
departments, controlling officers and DDO should take the following steps for the purpose of control of
expenditure:
1. Enforcement of Financial Order:
They should enforce financial order and strict economy at every step.
2. Observance of rules:
They must ensure that all the financial rules are observed in proper manner.
3. Expenditure in public interest:
 They must see that the expenditures are incurred in public interest and upon the object covered by
budgetary provisions.
4. Expenditure according to the grant:
They must observe that the total expenditure should not exceed the grant.
5. Keep checks on commitments and liabilities of the Financial Year:
All the concerned should see that what has been spent from the grant and what commitments have
been made and not paid for and what liabilities are likely to be incurred during the remaining period
of financial year.
Internal check against irregularities, waste and fraud:
GFR-13 pertains to the internal checks against irregularities, waste and fraud.
According to this rule, the controlling officer must keep check on the following points:
1. Prevention and detections of errors/irregularities:
He must keep check to prevent and detect errors and irregularities in the financial matters of the
subordinate offices.
2. Guard against loss of public money & stores:
He must act to guard against loss of public money and stores.
3. Inspection of accounts:
Prescribed checks are effectively applied. For this purpose, head of the Department will get
inspected the accounts of his own office and subordinate offices at least once in financial year by a
senior officer who is not concerned with account matters. His responsibilities will be to see that:
i. Application of Rules:
He should see that rules of cash handling are properly understood and applied.
ii. Observance of regularity and propriety in transactions:
He should see that effective system exist to observe regularity and propriety in the various
transactions including receipt and issue of stores.
iii. Maintenance of Account Books:
He should see that satisfactory arrangements exist for maintaining proper Account Books and
subsidiary records.
4. Inspection Report:
After inspection, the inspection report will be endorsed to audit.
The Head of the Department will communicate the report to audit, duly commented upon.
Delays in Payment:
GFR-14 is about the delays in payment, which says that:
“Delay in the payment of money indisputably due by government is contrary to all rules and budgetary
principles and should be avoided.”
1. Maintenance of Accounts (GFR 15 to 17):
GFR 15 to 17 pertains to the maintenance of accounts. These rules say that:
i. Personal Responsibility:
It is the personal responsibility of the concerned officer to ensure complete, accurate preparation of
accounts and returns and their dispatch within the prescribed date.
ii. Certified facts:
The officer, who signs or countersigns a certificate it personally responsible for the facts certified.
The facts that a certificate is printed is no justification for his signing it of the case.
iii. Demand for information by Audit:
Every departmental and controlling officer is duty bound to furnish complete possible information to
the Accountant General, whenever he asks for it for the preparation of any report by the AG.
2. Contracts (GFR 18 to 19):
In these rules, principles for entering into contract agreements are given.
General Principles:
The following general principles have been laid down for entering into contract agreements involving
expenditure from public funds.
i. Precise and definite terms:
The terms for the contract should be precise and definite and there should be no ambiguity.
ii. Legal/financial advice:
Legal and financial advice should be taken in the drafting as well as before entering into the
contract.
iii. Standard forms of contracts:
Standard forms of contracts should be adopted, wherever possible, the terms to be subject to
adequate prior scrutiny.
iv. Previous approval:
The terms once agreed upon should not be materially varied without the previous approval of the
competent authority.
v. Uncertain or indefinite liability:
There should be no contract involving uncertain or indefinite liability or any condition of unusual
character.
vi. Inviting open tenders:
For contracts, there should be inviting open tenders and accepting the lowest tender.
In case the lowest tender is not accepted the reasons should be recorded for it.
vii. Financial status of contractors:
The financial status of the individuals and firms must be taken into consideration.
viii. Written agreement as to price:
Where a formal contract is not made then there should be at least a written agreement as to price.
ix. Safeguarding government property:
Provision must be made in contracts for safeguarding government property entrusted to a contractor.
x. Power of revocation or cancellation:
There should be a provision for cancellation of contract on the expiry of 06 months’ notice, if
contract is likely to run for more than 05 years.
3. Defalcations, losses etc. (GFR 20 to 23):
GFR 20 to 23 are regarding defalcations and losses etc.
(Defalcation: the sum of money that is misappropriated).
According to these rules, the following steps should be taken in case of defalcation and losses etc.
i. Report of losses:
A report of losses of public money or stores should be submitted to superiors and also the
Accountant General immediately and without any delay.
ii. Post investigation report:
 After carrying out complete investigation, a detailed report indicating the nature and extend of loss,
error or neglect of rules be submitted.
iii. Report by the Departmental Officer:
The Departmental Officer will himself submit a detailed report to government incorporating
circumstances which led to the loss and the steps taken to prevent its recurrence and disciplinary
action against the defaulter.
Exceptions:
If losses not exceeding Rs. 200 each, need not to be reported to AG unless there are important features
which merit detailed investigation and consideration.
Accidents:
Any serious loss of immovable property due to any natural cause should immediately be reported to the
head of the department.
After complete enquiry, the concerned officer will submit its report to the head of the department and the
AG.
Responsibility for losses etc.:
Every government officer will be held responsible for any loss sustained by government through fraud or
negligence on his part or any other officer to the extent it may be proved that he contributed through his
own negligence.
4. Write off losses etc. (GFR – 24):
Powers etc. are indicated in Chapter – 4.
5. Departmental Regulations (GFR – 25):
All departmental regulations in so far as they embody orders or instructions of a financial character or have
important financial bearing should be made by or with the approval of the Ministry of Finance.
6. Revenue and Receipts (GFR 26 – 38):
GFR 26 to 38 are about the Revenue and Receipts. In these general rules and special rules for particular
classes of receipts rents of government buildings, lands etc. are described.
General Rules:
The followings are the general rules for revenue and receipts:
1. Assessment, correction etc. of govt. dues:
It is the duty of the Controlling Officer to see that all sums due to government are regularly and
promptly assessed, realized and duly credited in the Public Account.
2. Obtaining monthly accounts and returns:
The Controlling Officers should obtain monthly accounts and returns from their subordinate offices in
suitable form claiming credit for so much paid into the treasury or otherwise accounted for and compare
them with the statements of treasury credits furnished by the AG to see that the amounts reported as
collected have been duly credited in the Public Account.
3. In case of wrong credits:
If wrong credits come to the notice of the Controlling Officer, he should inform AG for correction.
If any credits are claimed but not found in accounts, them enquiries should be made first of the
responsible departmental officer, concerned.
4. Detailed Rules and procedures:
Detailed rules and procedure for assessment, collection, remission etc. of revenue should be laid down
in the departmental regulations of the revenue and collecting departments concerned.
5. No outstanding government dues:
No amount due to government should be left outstanding without sufficient reasons and where dues
appear to be irrevocable, the orders of the competent authority must be sought.
6. No sums to be credited to a suspense head:
No sums should be credited to revenue with debit to suspense head.
7. Ministry of Finance/FD should be kept fully informed:
 Heads of the departments should keep the Finance Ministry fully informed of the progress of collection
of revenue under their control and of all important variations in such collections as compared with the
budget estimates.
8. Special Rules for particular classes of receipts rents of govt. buildings, land etc.
Such rules and procedures are contained in the departmental regulations of the departments.
Where the maintenance of any rentable building is entrusted to a civil department other than Public
Works then the head of the department will be responsible for the due recovery of the rent.
9. Fines:
Court has the authority and power to fine and see that the money realized reaches the treasury and that
adequate precautions are taken.
7. Write-off losses (GFR 47 – 48):
GFR 47-48 pertains to write-off losses.
Definition of write-off:
Reduction in the book value of an asset.
The act of cancelling from an account a bad debt or a worthless asset.
Cancel a debt.
Writing-off of lost stores or public money:
The competent authority may sanction writing-off the irrevocable value of stores or public money lost by
fraud or negligence of individuals or other causes, provided that:
i. Non-disclosure of defect of system:
The loss does not disclose a defect of system the amendment of which requires the orders of the higher
authority.
ii. Serious negligence:
The loss may not took place due to serious negligence of any government officer/s which may call for
disciplinary action requiring the orders of the higher authority.
Informing Accountant General for Scrutiny:
All the sanctions to write-off should be communicated to AG for scrutiny purposes.
Exception:
The above discussed orders/rules do not apply in the case of loss of cash in treasuries.
Such cases should be reported to Finance for obtaining approval for writing-off.
8. Remission of disallowances by Audit and writing-off of the overpayments made to government servants
(GFR 49 – 50):
The competent authority may waive or write-off the recovery of an amount disallowed by an audit officer
otherwise found to have been overpaid, provided that:
i. Reasonable belief:
The amount disallowed has been drawn by the government servant under a reasonable belief that he
was entitled to it.
ii. Recovery physically impossible:
The recovery would be physically impossible or is likely to cause undue hardship to the government
servant.
iii. Delay in notifying promotion etc.:
The overdrawl has not been occasioned by delay in notifying a promotion or reversion.
9. Communication of sanctions (GFR 51 – 59):
GFR 51 to 59 pertains to the communication of sanctions.
In these rules, the procedure for communication of sanctions has been set out. The procedure is as follows:
i. AG and DAO:
All the sanctions will be communicated to the Accountant General or District Accounts officers as the
case may be.
ii. Sanctions beyond the powers of administrative departments:
 All the sanctions, which are beyond the powers of the administrative department, should be sent
through the Finance Department.
iii. AG/DAO to be obedient to the sanction:
AG/DAO will not refuse obedience to a sanction sent to him directly but will report to finance
Department that such an order has been issued and be communicated to them in due course.
iv. Indication of source of appropriation/re-appropriation or supplementary grant:
All the sanctions should invariably indicate the source of appropriation/re-appropriation, supplementary
grant or in anticipation of budget.
v. Brief summary of special pay, compensatory allowance:
There should be a brief summary of reasons in the sanction of special pay and compensatory allowance.
vi. Effective from the date of order:
Sanctions are effective from the date of orders.
Retrospective effect should not be given but when special circumstances so require, approval of
Finance Department should be obtained.
vii. Lapses with the end of F/Y:
A sanction which is not acted upon within the financial year will lapse with the end of year.
Chapter - 5
Budget, grants and appropriations (GFR 62 to 107):
Preparation and submission of detailed estimates:
Budget (GFR 62 to 66):
Annual Budget Statement:
A statement of the estimates annual revenue receipts and expenditure of the Federal Government, together with
all other receipts and disbursements of the federal government, arising inside and outside Pakistan is prepared
by the Finance Division and presented to the legislature under Article “80” of the Constitution. This statement
is called as the “Annual Budget Statement”.
Budget:
The annual budget statement along with the book of demands for grants and appropriation is known as
“Budget”.
Non-Votable charges:
These are also called charged expenditures. No voting takes place for the amount involved in these
expenditures for their withdrawal from the consolidated fund.
This means that they have to be paid in any case, whether the budget is passed or not passed. These include the
followings:
i. Salaries of the judges of Supreme Court.
ii. Election Commission.
iii. Chairman and Deputy Chairman Senate.
iv. Speaker & Deputy Speaker National Assembly.
v. Auditor General etc. (salaries of servants, loans, grant-in-aids etc.)
Votable Expenditure:
The votable part is actual budget. The expenditures in the budget are in the forms of demand for grants. Budget
also presents ways and means for how the government would be recovering the expenditures. Generally, the
demands for grants of each and every ministry is made separately in the budget documents and each demand
for grant has the provisions under its different heads.
Authority of Finance Division/Department:
The form of budget and demands for grants is laid down by the Finance Department. No alteration should be
made without the approval of Finance Department.
Responsibility of AG:
It is the responsibility of Accountant General to assist in the preparation, checking and consolidation of budget
estimates and demands for grants in consultation with the Auditor General.
For Financial Year:
All estimates of revenue and expenditure included in the budget are for the financial year.
General Procedure for estimating (GFR – 67 to 68):
The departmental estimates of revenue and expenditure are prepared in two parts which are as follows:
1. Part – I (Standing Charges):
Standing charges are those charges which vary from year to year and are not in the discretion to any
D.D.O.
Standing charges are permanent establishments, fixed allowances and contingencies etc.
2. Part – II (Fresh Charges):
Fresh charges are those charges which may include new objects of expenditure such as temporary
additions to existing establishments or to services and facilities which are either continue on year to
year basis or have been sanctioned with the clearance of Finance Department and have not been
provided in the current year’s budget.
Both the above estimates should be submitted by the concerned in the form of self-contained
memoranda explaining the variations between:
i. Current year’s sanctioned grant and the revised estimates as admitted.
 ii. The admitted budget estimates for the current year and those for the next year.

10. Alteration of Establishments (GFR 108 to 113):

Creation of new posts:
The proposal for creating permanent and temporary posts should contain the following information:
i. The present cost of establishment.
ii. Details of pay and allowances and number of posts.
iii. The funds, whether in the budget grant or through re-appropriation or supplementary grants.
Variation in sanctioned pay of a post:
The head of an office has not the authority to re-adjust the pay of Government servants. Moreover, he may
not distribute the pay of an absentee outside the rules.
In the case of non-gazetted establishments, are divided into separate units or cadres carrying different scales
of pay, there is no objection to excess appointments being made in a lower unit or cadre against an equal or
greater number of vacancies left unfilled in the higher.
11. Transfer of office (GFR 114 to 115):
GFR 114 and 115 are about the transfer of office/charge.
12. Report of transfer of charge:
The transfer of charge should be reported to AG/DAO, Head of the department and controlling officer on
the same day.
13. In case of involvement of cash/stores:
If the charge involves responsibility of cash, stores etc. then the following instructions should be followed:
i. Handing/taking of cashbook:
The cashbook should be closed on the day of transfer. The cash in hand or impress balance or unused
charges should be counted and a note to that effect should be recorded and be signed by the relieved
and the relieving officer.
ii. Inspection/examination of accounts/stores:
The relieving officer should examine and inspect the accounts and stores and bring to notice anything
irregular or objectionable.
iii. In case of sudden casualty:
In case of any sudden casualty, the next senior officer will take the charge.
When the person who takes the charge is not gazetted officer, he must at once report the circumstances
to his nearest departmental superior and obtain orders as to the cash in hand if any.
14. Date of Birth (GFR 116 to 117):
GFR 116 to 117 pertains to date of birth.
Declaration of date of birth:
 Every person newly appointed to a service or a post under government should at the time of appointment,
declare the date of his birth by the Christian era with as far as possible confirmatory documentary evidence
i.e. matric certificate, municipal birth certificate etc.
Recording of date of birth:
The date of birth should be recorded in the Service Book, Service Roll and History of service etc.
If actual date of birth is not known:
If the actual date of birth is not known then the following procedure should be opted:
i. Only year and month are known:
In case only year and month are known then the date of birth should be recorded as; “16th of the
month”.
ii. Only year of birth is known:
If only year of birth is known then the date of birth should be recorded as; “1st July of the year.”
iii. Only approximate age is known:
If both year and month are not known and only approximate age is known then the date of birth should
be recorded as;
“It should be assumed to be the corresponding date after deducting the number of years representing his
age from his date of appointment”. (Date of appointment, less No. of years.)
Alteration in date of birth:
Date of birth once recorded cannot be altered except in the case of clerical error. If there is such error then
in that case, the appointing authority for BS-17 and above and the administrative department for BPS-16
etc. after special enquiry can be altered. A servant can only apply for it within the first two years of his
service.
Instructions for employees in BPS – 1 to 4:
All the departments should inform in writing all employees in BPS-1 to BPS-4 regarding their date of birth
and superannuation. They should also be informed once in a year prior to their superannuation.
15. Service Books (GFR 120 to 121):
GFR 120 and 121 are about the service books.
Verification and certification:
At a fixed time every year, service books should be verified and should record in it a certificate after making
all relevant entries.
In case of transfer:
In case of transfer, verification up-to-date should be carried out and the service book should be forwarded to
the concerned office after transfer.
On becoming Gazette:
On becoming gazette officer, the service book should be forwarded to the Accountant General/District
Accounts Office
16. Service Rolls (GFR – 122):
Service Rolls are maintained under SR 204 and 205. They should be taken up every year for verification of
service and record of necessary certificate.
17. Arrears claims (GFR – 123 to 126):
Timeframe for a claim:
The AG or DAO cannot audit a claim if it is older than one year unless he is authorized by the competent
authority to investigate that claim.
The claims other than pension which are more than three years old are time barred and all such claims
where adequate explanation is not present, should be rejected.
Investigation in belated cases:
The authority competent to authorize the investigation of a belated claim should by told the reasons of late
submission of the claims.
Calculation of time limit:
The time limit should be calculated from the date on which the charge becomes payable.
 In case of retrospective effect:
If a sanction is accorded with retrospective effect, the charge does not become payable before it is
sanctioned.
Time limit to be calculated from the date of sanction:
The time limit should be calculated from the date of sanction and not from the date from which the sanction
was taken effect.
18. Contingencies (GFR 127 – 131):
Sanction of contingent expenditure:
Contingent expenditures can be incurred within the limits of the delegated powers prescribed in the
delegation of powers as per the availability of amount of appropriation for the purpose.
According to prescribed limit/scale:
Contingent expenditures should be made according to the limit/scale in case of presence of any special
rules.
Non expenditure without the sanction of Finance Department:
The contingent expenditure of an unusual character involving departure from any general or special rule or
order made by government should not be incurred nor should any liability be undertaken in connection,
therewith, without the previous sanction of the Finance Department.
19. Permanent Advance (GFR – 132):
Permanent Advance is a reasonable amount, which is sanctioned by the government to heeds of
department/officers to enable them to make payments of a contingent nature before they can place
themselves in funds by drawing money through presentation of bills.
Rules for permanent advance:
Permanent advances are subject to the following rules:
i. Fixation of Amount:
The amount of permanent advance will be fixed by the government or head of the department.
ii. Grant of revision of permanent Advance:
Application for the grant or revision of a permanent advance must be submitted to the sanctioning
authority through the AG, who will advise for the appropriation of the amount of advance.
iii. Amount not be larger than absolute essentials:
The permanent advances involve the permanent retention of money outside the treasury, therefore it
must not be larger than the absolute essential.
iv. Advances not to be multiplied unnecessarily:
The advances should not be multiplied unnecessarily. An officer’s advance should meet the
requirements of all the branches of his office. If there is need of petty sums in the sub ordinate
offices then the officer should spare a small portion of the advance.
v. Responsibility of holder:
The holder of permanent advance is responsible for the safe custody of the amount in hand and he
must be ready to account for the said money all the times.
vi. In case of transfer of charge:
In the case of transfer of charge and in other cases, the DDO must send an acknowledgement to
AG/DAO on 15th of July every year.
20. Stores (GFR 141 – 175):
Definition of Stores:
All articles and materials purchased or acquired for the use of government including expendable, issuable as
well as articles in the dead stock of the nature of plant, machinery, instruments, furniture, equipment and
fixture etc. are known as stores.
Expenditure on stores:
Expenditure on stores in the civil departments is incurred under contingent expenditure except the stores
relating to works etc.
Authorities competent to purchase stores:
 The authority which is competent to incur contingent expenditure may sanction the purchase of stores.
Purchases of stores are subject to the restrictions such as availability of necessary appropriation etc.
Rules/instructions for the purchase of stores:
Rules and instructions governing the purchase of stores are as follows:
i. Most Economical Manner:
Purchases must be made in the most economical manner.
ii. Avoid piecemeal purchases:
Piecemeal purchases should be avoided. Stores should not be purchased in small quantities and
periodical indents should be prepared and as many articles as possible be obtained by means of
such indents.
iii. Purchase orders should not be splitted:
The purchase orders should not be splitted in order to avoid the sanction of the higher
authorities.
iv. No purchase in advance:
No purchase should be made in advance but it should be made in accordance with the actual
requirement.
v. As per the scale:
The purchases must not exceed the scale fixed by the competent authority.
vi. Lowest rate be accepted:
While purchase of stores, the lowest rates be accepted if otherwise then reasons should be
recorded.
vii. No advance payment:
No advance payment should be made without the approval of Finance Department.
viii. Financial propriety:
Financial prosperity be observed while purchases of stores.
21. Receipt of Stores (GFR – 148):
While receiving the materials, those should be examined, counted, measured or weighted properly in order
to see that the quantity is correct and the quality is good. After that a certificate should be recorded to that
effect. Those should also be recorded in the appropriate stock register.
22. Issue of Stores (GFR – 149):
When materials are issued from the stock register for departments use etc., the concerned incharge will see
that the indent on the prescribed form has been made and is made by the authorized person.
After that he will examine and make necessary alteration if needed then will sign it along with date in the
description and quantity of material and will issue the required materials to the requestee.
After issuance of material, acknowledgement should be obtained from the person to whom they are issued.
Definitions:
Appropriation:
“The Assignment to meet specified expenditure of funds at the disposal of the assigning authority.
Money set aside for a specific purpose (By legislature).
Federal consolidated fund & Public Account:
“All revenues received by the Federal government, all loans raised by that government and all moneys received
by it in repayment of any loan, shall form part of the consolidated fund, which is known as the “Federal
Consolidated Fund”.
All other moneys:
a. Received by or on behalf of the Federal government or,
b. Received by or deposited with the Supreme Court or any other court established under the authority of
the authority of federation, shall be credited tot eh Public Account of the federation.
Non-recurring expenditure:
The expenditure sanctioned as a lump sum charge, whether the money be paid as lump-sum or by installments.
Recurring expenditure:
All expenditure which is not non-recurring.
Primary unit of appropriation:
A lump-sum of money placed by the President at the disposal of a subordinate authority by the method
prescribed in rule 5 to 7 of the financial powers.
Public Works:
Civil works and irrigation, navigation, embankment and drainage works.
Public Works Department:
The department of the federal government in administrative charge of public works.
Subordinate Authority:
A department of the federal government or any authority subordinate to or acting as agent to the President.
23. Custody and Accounts of Stores (GFR – 151-157):
Responsibility of the Custodian of Stores:
The head of the department or any other officer/official who is the custodian of stores should take special
care for the safe custody of stores. For this purpose, he should do the followings:
i. Suitable Accommodation:
Suitable accommodation should be provided for valuable and consumable stores and keep them in good
condition and protect them for long from damage and deterioration.
ii. Suitable Accounts:
The head of the office or the custodian of stores should maintain suitable accounts for and inventories
and prepare correct returns in respect of the stores in his charge for preventing losses through theft,
accident, fraud etc. and to make it possible at any time to check the actual balance with the book
balances and the payment to suppliers etc.
Classification of Stores/Accounts:
There should be separate accounts i.e:
i. Dead Stock:
The dead stock include plant, machinery, furniture and fixture etc.
Inventory of Dead stock:
An inventory of the dead stock should be maintained showing the number received, the number
disposed of and the balance in hand for each kind of article.
Instructions for maintenance of inventory:
a. Pricing of inventory:
The inventory should be priced whenever the items have to be ____ maintained for a government
commercial undertaking or the value of the items is necessary in order to enable govt. to calculate
the charge to be levied upon private persons or bodies. As regards other items, a numerical
inventory would be enough except for articles costing above Rs. 25/-
b. Inventories: at the site of dead stock:
The inventories should be maintained at the site of the dead stock.
c. Checking and certification:
The competent authority should check the inventory once a year and should record a certificate in
this regard.
d. Verification:
Articles should be verified once a year and its result should be recorded in the inventory.
Moreover, if there is any discrepancy then it should be brought to the account immediately and
should be investigated.
e. In case of lent:
If articles such as tools, plants etc. are lent to local bodies, contractors etc., then those should be
recovered under rules as prescribed by the competent authority.
f. Govt. Libraries/Museums:
Government libraries and museums should maintain up to date catalogues as well as prescribed
stock accounts and inventories.
 ii. Other Stores:
a. Reliable list, inventory/account:
A reliable list, inventory or account of all stores should be maintained to enable a ready
verification of stores and check of accounts at any times and transactions should also be recorded
at once when occur.
b. Maintenance of pricelists:
Price lists of both values and quantities should be maintained. Everything should be recorded
properly such as when stores are converted to money etc.
c. Numerical inventories:
Numerical inventories are sufficient for articles costing up to Rs._________.

24. Sale/Disposal and write off of stores (GFR – 166-168):

Previous Sanction:
The previous sanction of the competent authority should be obtained to the writing off of all losses,
deficiencies or depreciation in the value of stores.
Disposal by sale:
The obsolete, surplus or unserviceable stores may be disposed of by sale or otherwise by the orders of the
competent authority.
Write off:
The stores which are lost or damaged should be write____________ of the competent authority
Recording of reasons:
While declaring stores as unserviceable should record the full reasons for condemning them and how the
condemned stores are to be disposed of i.e. by sale, public auction or otherwise.
In case of selling to public etc.:
When the sock materials are sold to public etc. at their full value, a suitable percentage as determined by
competent authority should be added to the book value to cover charges on account of supervision, storage
and contingencies. This addition may be waived by the officer empowered to sanction the scale in the case
of surplus stock, which in his opinion would otherwise be unsaleable.
25. Custody and Accounts of stores (GFR 151 – 157):
A physical verification should be made once a year by the competent authority by a person not being in the
followings:
1. Custodian of stores.
2. Accountant.
3. Conversant with the techniques or nomenclature of stores.
4. A low paid government servant.
Presence of custodian:
The physical verification should be done in the presence of the custodian of the stores.
26. Physical verification of stores (GFR 158 – 162):
A physical verification should be made once a year by the competent authority by a person not being in the
following:
i. Custodian of stores.
ii. Accountant.
iii. Conversant with the techniques or nomenclature of stores.
iv. A low paid government servant.
Presence of custodian:
The physical verification should be done in the presence of the custodian of the stores.
Certification of verification:
After verification, a ____________________ should be furnished, which should indicate the following:
i. Discrepancies.
ii. Shortages.
 iii. Damages.
iv. Unserviceable items.
The above should immediately be brought into the notice of the competent authority to write off the loss.
27. Grants-in-Aid (GFR 206 – 209):
Grant-in-aid can be defined as:
“a sum of money granted by a government to a lower level of government or to ta dependency for a
programme etc.
OR
“A sum of money granted by a government for a specific project.”
Making of Grant-in-Aid:
Every grant will be made for specified object and the following conditions should be observed for the
purpose:
Conditions:
i. Mentioning of time limit:
The time limit in which the grant will be spent should clearly be mentioned. If there is no mention of
time limit then the reasonable time will be considered.
ii. Amount spendable in the year:
Only that part of grant should be paid which is likely to be spent during that year.
iii. Grants in installments:
The grants may be made in installments and according to the need of work.
iv. No withdrawal in advance:
v. The money may not be drawn in advance.
vi. No rush of payment in June:
There should be no occasion of rush of payments in the month of June.
vii. Surrender of unspent balance:
Any portion of the amount not required or unspent balance within the financial year should be
surrendered to government.
viii. Audited statement of previous grant:
In order to justify that the previous grant was spent on the specified purpose, the audited statement
of accounts should be obtained every year.
ix. Responsibility of prescribed conditions:
The officer, who signs or countersigns the bill, will be responsible for the fulfillment of the
prescribed conditions.