Rule 234 of The General Financial Rules 2017 Register of Grants

Original Rule Text

Rule 234 Register of Grants. A Register of Grants shall be maintained by the sanctioning authority in the format given in Form GFR – 21. (i) Columns (i) to (v) of the Register in format at Form GFR – 21 should be filled in simultaneously with the issue of the order sanctioning each Grant. These columns should be attested by any Gazetted Officer nominated for the purpose by the sanctioning authority. The serial number should be recorded on the body of the sanction at the time the item is entered in the Register as under: “Noted at Serial No …………………… in the Register of Grants”. (ii) Such a record will guard against the possibility of double payment. Columns (vi) and (vii) should be filled in and attested by the Gazetted Officer concerned as soon as the bill is ready. The bill should then be submitted to the Gazetted Officer nominated to act as Drawing and Disbursing Officer with the register for signing the bill and to the sanctioning authority for giving dated initials in column (viii) of Register. It should also be the duty of the sanctioning authority to verify that the conditions, if any, attached to the Grant have been duly accepted by the Grantee without any reservation and that no other bill for the same purpose has already been paid before. No bill should be signed unless it has been noted in the Register of Grants against the relevant sanction. This will also facilitate watching of payments in installments, if any, in the case of lump sum sanctions. (iii) Information at column (xiii) of the Form GFR-21 above should be used also for regulating the subsequent Grants.

Visual Summary

Purpose

Mandates maintaining a Register of Grants (Form GFR-21).

Key Action

Sanctioning authority fills and attests GFR-21 columns (i)-(v).

Benefit

Prevents double payments and aids grant monitoring.

Executive Summary

Rule 234 of the General Financial Rules, 2017 mandates that sanctioning authorities maintain a Register of Grants (Form GFR-21). This register ensures proper recording of grant sanctions, prevents double payments, and facilitates the monitoring of grant utilization and adherence to conditions. Specific columns must be filled and attested at different stages of the grant process, ensuring transparency and accountability in financial management.

In-Depth Analysis of the Rule

Introduction: Rule 234 of the General Financial Rules, 2017, is a cornerstone for ensuring meticulous financial record-keeping within government operations, specifically concerning grants. It outlines the critical requirement for maintaining a Register of Grants (Form GFR-21) by all sanctioning authorities.

Breakdown of the Rule:

Mandatory Register: A Register of Grants, in the format of Form GFR-21, must be maintained by the sanctioning authority.
Initial Recording (Sub-rule i): Columns (i) to (v) of Form GFR-21 are to be filled simultaneously with the issuance of a grant sanction order. These entries require attestation by a Gazetted Officer nominated for this purpose. A unique serial number from the register must be recorded on the sanction document.
Preventing Double Payment (Sub-rule ii): The primary benefit of this meticulous record-keeping is to guard against the possibility of making double payments for the same grant.
Payment Processing and Verification (Sub-rule ii): When a bill is prepared for payment, columns (vi) and (vii) of the register must be filled and attested by the concerned Gazetted Officer. The bill, along with the register, is then submitted to the Drawing and Disbursing Officer for signature and to the sanctioning authority for dated initials in column (viii). The sanctioning authority is also responsible for verifying that all grant conditions have been accepted without reservation and that no prior payment for the same purpose has been made. No bill should be signed without proper notation in the Register of Grants.
Monitoring Installments (Sub-rule ii): The register is instrumental in facilitating the monitoring of payments, especially for grants disbursed in installments.
Regulating Subsequent Grants (Sub-rule iii): Information contained in column (xiii) of Form GFR-21 is specifically designated for use in regulating and informing decisions regarding subsequent grants.

Practical Example: Imagine a government department sanctions a grant to a non-profit organization for a community development project. According to Rule 234, the sanctioning authority immediately fills out columns (i) to (v) of Form GFR-21, detailing the grant, its purpose, and conditions. A nominated Gazetted Officer attests these entries, and the unique serial number is noted on the sanction letter. Later, when the first installment payment is due, the bill is prepared. Before it’s signed, columns (vi) and (vii) of GFR-21 are updated and attested. The sanctioning authority then reviews the register to confirm that all conditions are met, the grantee has accepted them, and no previous payment for this specific installment has been made. This systematic process ensures that funds are disbursed correctly and transparently, preventing errors and misuse.

Related Provisions

To fully understand the context and implications of Rule 234, it is beneficial to consider the following related provisions within the General Financial Rules, 2017:

Rule 230 of The General Financial Rules 2017 Principles and Procedure for Award of Grants-in-aid: This rule lays down the foundational principles and procedures for sanctioning grants-in-aid, which directly feed into the record-keeping requirements of Rule 234.
Rule 233 of The General Financial Rules 2017 Funding of Sponsored Projects or Schemes: This rule details how sponsored projects and schemes are funded, which often involves grants that need to be tracked in the Register of Grants.
Rule 235 of The General Financial Rules 2017 Accounts of Grantee Institutions: This rule outlines the accounting responsibilities of institutions receiving grants, complementing the government’s record-keeping under Rule 234.

Learning Aids

Mnemonics

RGCVEPS: Register Grants Carefully, Verify Every Payment Systematically.

Process Flowchart

Grant SanctionedFill GFR-21 (i-v)Officer AttestsBill PreparedFill GFR-21 (vi-vii)Officer AttestsAuthority VerifiesBill Signed/PaidMonitor Grants

Multiple Choice Questions (MCQs)

1. What is the primary purpose of maintaining a Register of Grants under Rule 234 of the General Financial Rules, 2017?

A) To track employee attendance
B) To ensure proper recording and monitoring of grant sanctions
C) To manage office stationery
D) To record daily financial transactions

Show Answer

Correct Answer: B) To ensure proper recording and monitoring of grant sanctions

2. According to Rule 234 (i) of the General Financial Rules, 2017, which columns of Form GFR-21 should be filled simultaneously with the issue of a grant sanction order?

A) Columns (vi) to (viii)
B) Columns (i) to (v)
C) Columns (ix) to (xiii)
D) Columns (x) to (xiv)

Show Answer

Correct Answer: B) Columns (i) to (v)

3. Who is responsible for attesting the initial entries in columns (i) to (v) of the Register of Grants (Form GFR-21) as per Rule 234 (i) of the General Financial Rules, 2017?

A) The Drawing and Disbursing Officer
B) Any Gazetted Officer nominated for the purpose
C) The Grantee Institution
D) The Accounts Officer

Show Answer

Correct Answer: B) Any Gazetted Officer nominated for the purpose

4. Rule 234 (ii) of the General Financial Rules, 2017 states that the Register of Grants helps guard against what possibility?

A) Under-utilization of funds
B) Delayed project completion
C) Double payment of grants
D) Incorrect budget allocation

Show Answer

Correct Answer: C) Double payment of grants

5. What information from Form GFR-21 is specifically mentioned in Rule 234 (iii) of the General Financial Rules, 2017 as being used for regulating subsequent grants?

A) Information at column (i)
B) Information at column (v)
C) Information at column (xiii)
D) Information at column (viii)

Show Answer

Correct Answer: C) Information at column (xiii)

Frequently Asked Questions

What is the main objective of Rule 234 of the General Financial Rules, 2017?

Rule 234 aims to ensure systematic recording, monitoring, and control over the sanction and disbursement of grants-in-aid by requiring sanctioning authorities to maintain a comprehensive Register of Grants (Form GFR-21).

How does the Register of Grants (Form GFR-21) prevent financial irregularities under Rule 234 of the General Financial Rules, 2017?

By mandating detailed entries at various stages of the grant process, including attestation by a Gazetted Officer and verification by the sanctioning authority, the register acts as a control mechanism to prevent double payments and ensure adherence to grant conditions.

Who is responsible for maintaining the Register of Grants as per Rule 234 of the General Financial Rules, 2017?

The sanctioning authority is responsible for maintaining the Register of Grants in the format given in Form GFR-21.

Key Takeaways

Rule 234 mandates maintaining a Register of Grants (Form GFR-21) by sanctioning authorities.
It ensures proper recording, prevents double payments, and facilitates monitoring of grant conditions.
Specific columns of GFR-21 must be filled and attested at different stages of the grant process.
Information from the register is crucial for regulating subsequent grants.

Conclusion

Rule 234 of the General Financial Rules, 2017 is fundamental for robust financial governance, ensuring transparency and accountability in the disbursement of grants. By meticulously documenting each stage of the grant process, it safeguards public funds and promotes efficient financial management within government operations.

Continue to Rule 235 →