Accounting Rules

1. Accounting Rules Autonomous District Councils

2. Autonomous District Councils • The District Councils are Autonomous bodies constituted under the Sixth Schedule to the Constitution of India with the objectives of framing laws to safeguard the rights and interest of the indigenous Tribal people within their jurisdiction.

3. Sixth Schedule to the Constitution of India [Articles 244(2) and 275(1)] • 20. Tribal areas.—(1) The areas specified in Parts I, II, IIA and III of the table below shall respectively be the tribal areas within the State of Assam, the State of Meghalaya, the State of Tripura and the State of Mizoram. • (2) Any reference in Part I, Part II or Part III of the table below to any district shall be construed as a reference to the territories comprised within the autonomous district of that name existing immediately before the day appointed under clause (b) of section 2 of the North-Eastern Areas (Reorganisation) Act, 1971

4. Sixth Schedule to the Constitution of India • (3) The reference in Part IIA in the table below to the "Tripura Tribal Areas District" shall be construed as a reference to the territory comprising the tribal areas specified in the First Schedule to the Tripura Tribal Areas Autonomous District Council Act, 1979. TABLE Part I 1. The North Cachar Hills District. 2. The Karbi Anglong District. 3. The Bodoland Territorial Areas District. Part II 1. Khasi Hills District. 2. Jaintia Hills District. 3. The Garo Hills District. Part IIA Tripura Tribal Areas District Part III 1. The Chakma District. 2. The Mara District. 3. The Lai District.

5. District and Regional Funds • There shall be constituted for each autonomous district, • a District Fund and for each autonomous region, • a Regional Fund • to which shall be credited all moneys received respectively by the District Council for that district and the Regional Council for that region in the course of the administration of such district or region, as the case may be, in accordance with the provisions of this Constitution.

6. District and Regional Funds • The Governor may make rules for the management of the District Fund, or, as the case may be, the Regional Fund and for the procedure to be followed in respect of • payment of money into the said Fund, • the withdrawal of moneys therefrom, • the custody of moneys therein and • any other matter connected with or ancillary to the matters aforesaid.

7. District and Regional Funds • The accounts of the District Council or, as the case may be, the Regional Council shall be kept in such form as the Comptroller and Auditor General of India may, with the approval of the President, prescribe.

8. District and Regional Funds • The Comptroller and Auditor-General shall cause the accounts of the District and Regional Councils • to be audited in such manner as he may think fit, and • the reports of the Comptroller and Auditor-General relating to such accounts shall be submitted to the Governor who shall cause them to be laid before the Council.

9. grants from the Govt • Though the District Councils has the power to collect their own revenue, • they depend largely on sanction of grants from the Govt. every year for development works • as released by the Ministry of a Tribal Affairs to the State under the Proviso to the Article 275(1) of the Constitution of India.

10. Grants from the Govt • This fund is channellised through the District Council Affairs Department to the Autonomous District Councils. • The District Council Affairs Department does not receive this fund directly from the Central Government.

11. grants from the Govt • This fund is amalgamated with and received through the State Plan allocation under grant-in-aids to the Autonomous District Councils, for implementation of their own Development Schemes.

12. MEGHALAYA STATE DEVELOPMENT REPORT • With the Government implementing schemes through Block Development officers, the Council has very little role in development to avoid duplication, wastage and mis-utilisation funds.

13. SECOND ADMINISTRATIVE REFORMS COMMISSIONFifteenth REPORT- APRIL 2009 • Recommendations (para 5.15.4.7 ): • a) The fact of Autonomous District Councils should be accepted and the State should undertake comprehensive activity mapping with regard to all the matters mentioned in para 3 of the Sixth Schedule. • This process should cover all aspects of the subjects viz planning, budgeting and provisioning of finances. • This will necessitate full transfer of local functionaries of the field offices/departments and bodies relating to these activities at the district level to the control of the Councils. • The State Government should set-up a task force to complete this work in a time bound manner.

14. SECOND ADMINISTRATIVE REFORMS COMMISSION • b) Allocation of funds to the District Councils should be based on normative and transparent considerations. These allocations should be budgeted in detail and released in agreed instalments during the financial year. • c) The Union Government would also need to take similar action with regard to Centrally Sponsored Schemes being implemented in these areas. • d) Appropriate measures may be taken for capacity building in Autonomous Councils so that they are able to utilise the funds in a better way.

15. SECOND ADMINISTRATIVE REFORMS COMMISSION • e) Government of Meghalaya may take steps for extension of the experiment of elected village committees in the Garo Hills for implementing the National Employment Guarantee Act and for implementation of other rural development programmes as well. • f) In the long run, directly elected village level representative bodies will need to be constituted and adequately empowered in autonomous Hill Councils areas of Meghalaya.

16. Present scenario • One Party has claimed majority, having 18 out of the 30 seats in the Autonomous Council (GARO) and has demanded the right to thereby form the Executive Council. • However, present alliance in power in Shillong, has put the council in suspended animation alleging huge financial discrepancies and irregularities in appointments by the Council.

17. Present scenario • The Council has been put to suspended animation in a six month extension from September 8th. • The enquiry conducted by the Tura Deputy Commissioner has found “gross irregularities” in allocation and allotment of crores of rupees. It is alleged that several crores of rupees have been withdrawn without any proper utilisation. . • The cabinet decision to conduct further enquiry which is however challenged by the majority party and a court case has been registered against the State government in the Guwahati High Court.

18. Powers to assess and collect land revenue and to impose taxes • The Regional Council for an autonomous region in respect of all lands within such region and • The District Council for an autonomous district in respect of all lands within the district except those which are in the areas under the authority of Regional Councils, if any, within the district, • Shall have the power-

19. Powers to assess and collect land revenue and to impose taxes • to assess and collect revenue in respect of such lands. • to levy and collect taxes on lands and buildings, and tolls on persons resident within such areas.

20. Powers to assess and collect land revenue and to impose taxes • to levy and collect all or any of the following taxes within such district, that is to say — • taxes on professions, trades and employments; • taxes on animals, vehicles and boats; • taxes on the entry of goods into a market for sale therein, and tolls on passengers and goods carried in ferries; and • taxes for the maintenance of schools, dispensaries or roads.

21. Licences or leases for the purpose of prospecting for, or extraction of, minerals • Such share of the royalties accruing each year • from licences or leases for the purpose of prospecting for, or the extraction of, minerals granted by the Government of the State • in respect of any area within an autonomous district as may be agreed upon between the Government of the State and the District Council of such district shall be made over to that District Council.

22. Constitution of District Councils • The District Councils are constituted by the members representing different District Councils constituencies, elected on the basis of universal adult franchise like members of the Legislative Assembly. • The leader of the largest party/group returned to the Council is appointed by the Governor as the Chief Executive Member (C.E.M.). • On the advice of such C.E.M., a number of members are appointed by the Governor as Executive Members. • The C.E.M. and the E.M.s constitute the Executive Committee of the Autonomous District Councils and exercise its Executive Powers.

23. Legislative, Executive and Judicial powers • Under the Sixth Schedule of the constitution the District Councils enjoy legislative, executive and judicial powers mainly over the following items: • Land other than reserve forests • Forests other than reserve forests • Use of any land or water course for agricultural purposes • Regulation in the practice of Jhum or other forms of shifting cultivation • Establishment of village or town administration including village or town police and public health and sanitation. • Appointment and succession of Chiefs and their powers • Establishment of village or town Committees or Councils and their powers • Regulation of laws or inheritance of property • Marriage • Social customs

24. Estimated receipts and expenditure pertaining to autonomous districts to be shown separately in the annual financial statement • The estimated receipts and expenditure pertaining to an autonomous district which are • to be credited to, or • is to be made from, • the Consolidated Fund of the State shall be first placed before • the District Council for discussion and • then after such discussion be shown separately in the annual financial statement of the State to be laid before the Legislature of the State.

25. Accounting of District Fund

26. District fund • The fund shall comprise • all receipts from the Government either in the form of Grant-in-aid or otherwise and • all receipts realised by the District Council under the provisions contained in the Sixth Schedule to the Constitution including the taxes levied or other revenues or receipts realised under the Laws, rules or regulations framed by the District Council under the Sixth Schedule to the constitution.

27. Period of Account • The annual accounts of the District Council shall record all transactions, which take place during a financial year commencing from 1st April to 31st March. • The accounts will be maintained in the format prescribed by the Government of India, Ministry of Finance. • For this purpose the forms of accounts prescribed by the Comptroller & Auditor General of India and approved by the President of India for other District Councils constituted under sixth schedule will be adopted as far as practicable for the District Council of the State till Comptroller & Auditor General of India prescribes such forms being approved by the President.

28. Main Division • The accounts of the Council shall be kept in the following of Accounts parts:- • (i) Part – I District fund of the Council. • (ii) Part –II Deposit Fund.

29. Part – I District fund of the Council • In Part – I of the accounts, there shall be two main divisions, namely: - • (i) Revenue consisting of sections for Receipt Heads (Revenue Account) and Expenditure Heads (Revenue Account), • (ii) Capital, Public Debt, Loans etc. consisting of section for • “Receipt Heads” (Capital Account) “Expenditure Heads” (Capital Account) and “Public Debt.” “Loans and Advances”. • The first division shall deal with the proceeds of taxation and other receipts classed as revenue and expenditure met there from. • It shall also include the grants and contributions received from the Government and also grants and contributions made by the Council.

30. Revenue Account • This division shall deal with the proceeds of taxation and other receipts classed as revenue and expenditure met there from. • It shall also include the grants and contributions received from the Government and also grants and contributions made by the Council.

31. Capital Account • This division shall deal with expenditure met usually from borrowed funds with the object either of increasing concrete assets of a material and permanent character or reducing recurring liabilities. It also includes receipts of a capital nature intended to be applied as a set off to capital expenditure. • The section “ Public Debt.” and “Loans and Advances” etc. of the second division shall comprise loans received and their repayments by the District Council and loans and advances made and their recoveries by the District Council. • Part 1

32. Part –II Deposit Fund • In Part – II of the accounts, the transactions relating to Deposits, including General Provident Fund and other funds and advances shall be recorded. • The transactions under “Debt, Deposit and Advances” in this part are such • in respect of which the District Council incurs a liability to repay the moneys received or • has a claim to recover the amount paid, together with the repayment of the former (Debt and Deposits) and • the recoveries of the latter (Advances).

33. Contributions /grants • Contributions /grants made by the District Committees, Village Committees etc. or vice-versa shall be • debited as expenditure or • shown as receipt, as the case may be, • under the head of account closely connected with the object for which the contributions / grants are made.

34. Refund of revenue • Refund of revenue, shall as a general rule, be taken Revenue as reduction of the revenue receipts. • The refunds of revenue may be accounted for under a separate detailed head “Deduction – Refunds”.

35. Accounting for direct recoveries • The recoveries of repayments shall be posted under receipt of service head concerned in the following manner:

36. Recoveries relating to the over payments of the current year • These recoveries whether made in cash or by deduction from payment vouchers shall be taken as a reduction of expenditure by posting these as minus expenditure under the head previously overcharged, and

37. Recoveries relating to over payments of previous year. • These shall be credited to the Departmental receipt head concerned as receipt of the Department.

38. General Principles

39. Registers and Forms • The registers and forms prescribed provide for all classes of transactions usually occurring in an Autonomous District. • If it is found that account rules and forms prescribed do not conveniently meet the special requirement of the Autonomous District they may be added to or modified by the District Council in consultation with Accountant General and with the approval of the Governor. • In respect of Forms and Registers not specifically provided, the District Council may adopt the forms and registers that are used in the State Government Offices in connection with accounts matter.

40. Audit • The Member-in-Charge of the financial affairs shall at the time of audit cause to produce all accounts, registers, documents and subsidiary papers which may be called for by audit authority for investigation.

41. Cash and Account • The Cash and Account branches of the Council Office shall be kept • distinct from each other, and • under separate officers, who, for the purpose of these rules shall be termed as the Cashier and Accountant respectively.

42. Cash and Account • In no case shall the same person compile the accounts and superintend the collection of the rates, taxes and other income of the District Council.

43. Security • The Cashier and other officer in employ of the District Council in whose custody the funds of the District Council are kept, shall furnish such security as is in practice in the State Government Offices. • The forms of security bond for employees of the District Council shall be as prescribed in G.F.Rs as adopted in the District Council.

44. Books of Accounts • All Accounts and Registers shall for the present, be and Registers maintained in English. • All books of Accounts and Registers shall be substantially bound and paged before being brought into use. • A certificate as to the number of pages of each book contain shall be given in the fly leaf by the Chief Executive Officer or any other officer authorised by him in this behalf. • No account shall be prepared on loose sheets.

45. Correction • All corrections and alternations in accounts shall be neatly made in red ink and attested by the initial of the Chief Registers Executive Officer or by any other officer authorised by him in this behalf. • Similarly all alterations or corrections in figures shall be duly authenticated by the Drawing Officer. • All corrections in the total of the bill whether made in words or figures shall be attested by the full signature of the Drawing Officer with date against each instead of by his initials. • A note to the effect that amount of the bill is below a specified amount expressed in whole rupees which is slightly in excess of the total amount of the bill, should invariably be recorded on the body of the bill in red ink. • The note should be made in the same manner as is done in case of cheques.

46. Theft • Whenever any loss of money or other property due embezzlement to embezzlement or theft or to facts indicating misconduct, of the District neglect or dishonesty on the part of any employee of the Council money District Council is discovered, the fact shall be promptly reported by the Chief Executive Officer to the Chief Executive Member of the District Council and also to the Accountant General and a copy simultaneously be sent to the Government. • If the Chief Executive Officer is satisfied that the offence has been committed, he shall immediately direct the appropriate authority to institute a departmental enquiry into the circumstances resulting in the loss of money and other property of the District Council. • Apart from the steps taken by the Chief Executive Officer indicated above, he may apply to the Inspector General of Police for a regular police investigation in respect of such offence.

47. Theft • the Government may of its own motion direct and investigate into the matter by such officer as he deems fit and take such further action as he may consider necessary. • Petty cases need not be reported to the Accountant General, unless there are in any case, important features which merit detailed investigation and consideration.

48. write off • No money or property lost shall be written off except with the sanction of the District Council up to a maximum of Rs.1000. • Any amount in excess of Rs.1000 may be written off by the District Council with the approval of the Government.

49. LOCATION AND CUSTODY OF MONEY AND PAYMENT TO THE DISTRICT COUNCIL FUND AND WITHDRAWAL

50. Responsibility • The Chief Executive Officer shall be responsible for accounts ensuring that • accounts of the District Fund are at all times maintained up to date and • in proper form and • that the relevant rules and procedures are followed in sanctioning and incurring expenditure and • the funds are applied only for legitimate and approved purposes.