Rule 10 of the General Financial Rules 2017 Controlling Officers Duty of Reconciliation
Original Rule Text
Visual Summary
Controlling Officer’s Duty
Responsible for verifying that all collected money is properly credited.
Monthly Reconciliation
Compares reports from subordinate officers with statements from the Accounts Officer.
Two Data Sources
Uses monthly returns from collecting officers and credit extracts from the Accounts Officer.
Executive Summary
Rule 10 establishes a crucial monthly check-and-balance system. It makes the ‘Controlling Officer’ responsible for ensuring that all money collected by their team (subordinate officers) has actually been deposited into the government’s account. To do this, they must compare two sets of documents: the monthly reports from their team stating what was collected, and a separate statement from the ‘Accounts Officer’ showing what was actually credited. This process prevents discrepancies and ensures all government revenue is properly accounted for.
In-Depth Analysis of the Rule
Introduction
Rule 10 of the General Financial Rules, 2017, outlines a fundamental procedure for financial accountability within the government. It creates a system of reconciliation to verify that money reported as collected is the same as the money actually credited to the government’s treasury or bank. This rule places the responsibility for this verification squarely on the shoulders of the Controlling Officer.
Breakdown of the Rule
The rule can be broken down into two main parts:
- The Controlling Officer’s Responsibility: The core duty of the Controlling Officer is to perform a comparison. They must get monthly accounts and returns from their subordinate officers. These reports detail the money collected and paid into the treasury or bank. The Controlling Officer must then compare these reports against a separate statement provided by the Accounts Officer, which shows the actual amounts credited to the government’s account. The goal is to spot any differences and ensure every rupee is accounted for.
- The Accounts Officer’s Role: To facilitate this check, the Accounts Officer has a supporting role. They are required to send a monthly extract (a summary) from their official accounts to the Controlling Officer. This extract specifically shows all the amounts that have been formally credited during that month. This independent statement serves as the verification document against which the subordinate officers’ claims are checked.
Practical Example
Imagine a Regional Transport Office (RTO) where several officers collect fees for vehicle registration. These officers are the ‘subordinate officers’. At the end of the month, they prepare a report for their manager, the ‘Controlling Officer’, stating they collected a total of ₹50 lakhs and deposited it into the designated government bank account.
Meanwhile, the Pay and Accounts Office (the ‘Accounts Officer’) for that department independently prepares a statement from the bank records showing that ₹50 lakhs from that RTO was indeed credited to the government’s account. The Accounts Officer sends this statement to the RTO’s Controlling Officer.
The Controlling Officer then compares the report from their team (claiming ₹50 lakhs deposited) with the statement from the Accounts Officer (confirming ₹50 lakhs credited). If they match, the process is complete. If the Accounts Officer’s statement only showed ₹48 lakhs, the Controlling Officer would immediately investigate the ₹2 lakh discrepancy.
Conclusion
Rule 10 is a simple but powerful tool for financial discipline. By mandating a two-source verification process, it reduces the risk of errors, fraud, and mismanagement of public funds. It ensures that there is a clear and accountable trail for all government receipts, from the point of collection to their final credit in the government’s account.
Related Provisions
This rule is part of a broader system of financial management. Understanding the following related rules provides a more complete picture of the process:
- Rule 9: Department’s duty to ensure proper crediting of receipts – This rule sets the overall responsibility for the department to ensure all money is correctly and promptly assessed, collected, and credited. Rule 10 is the specific mechanism for how a Controlling Officer carries out this duty.
- Rule 7: Moneys received on behalf of Government to be brought into Government Account – This is the foundational rule stating that all money received must be brought into the Government Account without delay. Rule 10 provides a way to verify compliance with this mandate.
- Rule 11: Departmental regulations for receipts – This rule discusses the detailed procedures and maintenance of receipt books. The returns mentioned in Rule 10 would be based on the records maintained under the procedures of Rule 11.
Learning Aids
Mnemonics
- COMPARE: Controlling Officer Must Pair Accounts Received Everywhere. This helps remember the core action of comparing the two sets of reports.
- Two Reports: Remember the process involves two key documents: the subordinates’ **Returns** and the Accounts Officer’s **Report**. The Controlling Officer’s job is to make sure the two reports tell the same story.
Mindmap
Multiple Choice Questions (MCQs)
1. [Easy] Who is primarily responsible for comparing the monthly accounts from subordinate officers with the statements from the Accounts Officer?
- A) The Accounts Officer
- B) The Controlling Officer
- C) The subordinate officers themselves
- D) The Treasury Officer
Show Answer
Correct Answer: B) The Controlling Officer. The rule explicitly states this is the duty of the Controlling Officer.
2. [Medium] What is the main purpose of the reconciliation process described in Rule 10?
- A) To calculate the total revenue collected for the annual budget.
- B) To identify which subordinate officers are most efficient at collections.
- C) To ensure that the amounts reported as collected have been duly credited.
- D) To authorize the Accounts Officer to audit the subordinate offices.
Show Answer
Correct Answer: C) To ensure that the amounts reported as collected have been duly credited. The rule’s text directly states this objective.
3. [Hard] What specific document does the Accounts Officer provide to the Controlling Officer to facilitate the comparison?
- A) A complete audit report of all transactions.
- B) The original deposit slips from the treasury or bank.
- C) A list of all officers who failed to deposit their collections.
- D) An extract from his accounts showing the amounts brought to credit.
Show Answer
Correct Answer: D) An extract from his accounts showing the amounts brought to credit. This is the precise terminology used in the rule, distinguishing it from other plausible but incorrect options.
Frequently Asked Questions
How often does this reconciliation happen?
The rule specifies that the Controlling Officer obtains ‘monthly accounts and returns’ and the Accounts Officer sends an extract ‘in each month’. Therefore, this reconciliation process is a monthly activity.
What happens if the amounts do not match?
While Rule 10 does not specify the follow-up action, the purpose of this reconciliation is to identify discrepancies. Once a mismatch is found, the Controlling Officer would be responsible for investigating the cause, which could range from a simple clerical error to a serious issue like misappropriation of funds.
Does the Controlling Officer need to check every single transaction?
The rule requires the Controlling Officer to ‘compare’ the monthly accounts and returns with the statements of credits. This implies a comparison of the total amounts reported versus the total amounts credited. It is a high-level check to ensure the overall figures match, rather than a detailed audit of individual transactions.
Key Takeaways
- The Controlling Officer must perform a monthly check of all money collected by their team.
- This check involves comparing two documents: the team’s collection report and the official credit statement from the Accounts Officer.
- The main goal is to verify that all money reported as collected has actually been deposited into the government’s account.
- This process creates a system of accountability and helps prevent financial errors or misuse of funds.