1 AKNOWLEDGEMENT 6th heaven, wants to express their gratitude toward all the employees of AG office who gave their precious time and co-operate us in making our project on the functioning of financial department. We also want to pay our thanks to our honorable faculty Mr. Amit Shekher Tirky who gave us this opportunity. Only because of this we come to know how financial department of any organisation actually works. 6 th heaven
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The Finance Department is responsible for the financial functions
and activities of the organization and for the administration of the
organization‟s financial policy.
As we have to make project of function of finance department of
any organisation and AG off is the department of government that
watch the financial function of every government department. So
we have decided to go for AG office.
Accountant General, Jharkhand functions under theComptroller & Auditor General of India (C&AG) who is the Headof the Indian Audit & Accounts Department. The Comptroller &Auditor General of India is a Constitutional Authority appointed bythe warrant of the President of India. By virtue of the provisions ofGovernment of India (Audit & Accounts) Order, 1936 as adoptedby the Government of India (Provisional Constitution) Order, 1947
and Article 149 of the Constitution of India, the C&AG had thepower to frame rules and give directions in all matters pertainingto the audit of accounts for which he was responsible. Thefunctions of the Comptroller & Auditor General of India arederived mainly from the provisions of Article-149 to 151 of theConstitution of India.
The C&AG's (Duties, Powers and Conditions of Service) Act,
1971 under the Articles 148(3) and 149 of the Constitution waspassed by Parliament in 1971.
The C&AG's DPC Act, 1971 deal with the responsibilities ofthe C&AG in relation to Compilation of Accounts of the Union, theStates and Union territories with Legislatures.
Under the provisions, the C&AG compiles the Accounts of theStates, keeps such accounts in relation to compiling of theAccounts of the States as may be necessary and preparesAppropriation Accounts & Finance Accounts every year.
The Appropriation & Finance Accounts are signed by the C&AGof India and presented to the Governor of the State for being laidon the table of the State Legislature.
The C&AG‟s (DPC) Act, 1971 defines the duties of the C&AG inrelation to the audit of the accounts and the transactions relatingto the Consolidated Fund, Contingency Fund and the PublicAccounts of the Union, the States and Union Territories. C&AG isalso responsible for the audit of Local Bodies (i.e. Panchayati RajInstitutions and Urban Local Bodies) under the provisions of someof the State Acts and provides technical and administrativeguidance for Accounting & Audit functions in all States.
Ours is one of the oldest offices in the country. On the formation
of a new „Province of Bihar and Orissa‟ with its capital at Patna, in April 1912, following the reversal of “Partition of Bengal”, theHeadquarters of the Government was temporarily set up atRanchi, for want of accommodation in Patna. The office of theAccountant General, Bihar and Orissa started functioning from20th May 1912 at Ranchi , when Mr. W. Alder, ICS assumedcharge as Accountant General, Bihar and Orissa. Surplus stafffrom the erstwhile office of “Accountant General, East Bengal &
Assam, Dacca ”, optees from Shillong office (Capital of Assam)
and Calcutta office (Capital of Bengal) were brought to Ranchi inApril-May 1912, and they constituted the initial staff for the newlyformed office. The office was accommodated in the tiledhutments in Doranda, then a Military cantonment. The officecontinued to remain in these hutments till 1966, when theconstruction of a new multi-storied building, adjacent to these
hutments was completed. However some sections continued tofunction from these hutments as late as 1999-2000.
1.2 Consequent to the creation of a separate “ Province of Orissa” in April, 1936, the Orissa office was separated and eventuallyshifted to Bhubaneshwar in April, 1956.
1.3 In order to ensure expeditious settlement of personal claims ofState Government officers, the Bihar office was bifurcated in
February 1973, into two distinct offices viz.: -
(i) Accountant General-I, Bihar with Headquarters at Ranchi and
(ii) Accountant General-II, Bihar with Headquarters at Patna .
The existing office of Deputy Accountant General (Project) inPatna was also placed under the Accountant General (II), Bihar,Patna.
1.4 With the restructuring of the Indian Audit & AccountsDepartment, the functions relating to “Audit” were separated from
those of Accounts & Entitlements and four separate offices,started functioning from March, 1984, viz.: -
1.5 The post of Accountant General (A&E) I, Bihar, Ranchi wasupgraded to the level of “Principal Accountant General” in July,1985. The office of the Accountant General (A&E)I, Bihar, Ranchiwas subsequently re-named as the “Office of the PrincipalAccountant General(A&E)I, Bihar, Ranchi in March, 1990.
1.6 On 15th of November 2000 the State of Bihar was bifurcated
into Bihar and Jharkhand with Ranchi as the capital of the latter.As a result the offices were renamed as Offices of PrincipalAccountant General (A&E) I, Bihar & Jharkhand, Ranchi,Accountant General (A&E) II, Bihar & Jharkhand, Patna,Accountant General (Audit) I, Bihar & Jharkhand, Patna andAccountant General (Audit) II, Bihar & Jharkhand, Ranchi.
1.7 On 1st April 2003 the name of the office was changed yetagain and it became the office of the Accountant General (A&E),Jharkhand, Ranchi.
Situation Post-Bifurcation of the State of Bihar
As per Bihar State Reorganisation Act, 2000, on 15.11.2000 a
new state of Jharkhand came into existence with Ranchi ascapital.
This bifurcation resulted in the bifurcation of A.G. Offices also,located in erstwhile Bihar. With effect from 15.11.2000 the officesof the Principal Accountant General/Accountant General, Biharwere renamed as Principal Accountant General/Accountants
General, Bihar & Jharkhand which were further renamed asAccountant General, Jharkhand and Accountant General, Biharrespectively wef, 1.4.03.
In the Accountant General‟s office the Account work wasbifurcated. Firstly the accounts of combined Bihar were closed by14.11.2000 and from 15.11.2000 accounts were compiled forJharkhand and Bihar separately. From December onwards, theaccounts of Jharkhand were transferred on VLC dispensing withthe parallel manual compilation. From April 2001 accounts, Biharaccounts were put on VLC dispensing with manual compilation.
On transfer of pension authorization work of Non Gazetted
staff of Jharkhand State from Patna to Ranchi in Feb‟03, thisoffice started dealing with the pension authorization of suchpensions w.e.f, 03.02.2003. G.E and Gazetted pension work ofthe dignitaries/ officers/employees of Jharkhand State wereshifted from Patna to Ranchi in two batches, 15th September,2006 and 15th December, 2006.
AG (Audit) II, Bihar and Jharkhand was renamed asAccountant General (Audit), Jharkhand, Ranchi with effect from
22 July 2002 on re-allocation of work between the Accountants
General (Audit) stationed at Patna & Ranchi. The staff was
reallocated between both the audit offices with effect from 17 July
A branch of economics concerned with resource allocation as well
as resource management, acquisition and investment. Simplyfinance deals with matters related to money and the markets.
Finance is the science of funds management. The general areas offinance are business finance, personal finance, and public finance.Finance includes saving money and often includes lending money.The field of finance deals with the concepts of time, money and riskand how they are interrelated.
Functions (Accounts)
The functions of the Accountant General (A&E) Jharkhand,
Ranchi are: -
1. Preparation of Monthly Civil Accounts, Annual AppropriationAccounts and Finance Accounts of Jharkhand State andassistance to the State Government in preparation of itsAnnual Budget Estimates.
2. Maintenance of detailed Accounts of loans sanctioned by theCentral Government to Jharkhand, loans sanctioned by theState Government to Corporations and companies and long-
term loans and advances granted by the State Governmentto its gazetted employees.
3. The cadre control of the Divisional Accountants in the Statesof Bihar & Jharkhand. Consequent upon re-organisation theerstwhile State of Bihar into Bihar & Jharkhand the Cadre ofDivisional Accountants cadre is required to be bifurcated
between Jharkhand and Bihar State w.e.f 01.05.2007 as perthe cadre separation policy communicated by Headquarters.
4. Office Residuary works of the Central Government.5. Coordination of work amongst the Accountants General of
Jharkhand.6. Maintenance of Estate and control of CGHS (Captive to the
Department at Ranchi.)7. In pursuance of Headquarters office direction the Gazetted
Entitlement work and Gazetted Pension work of the Officersof Government of Jharkhand State have been started w.e.f.15.12.2006. At the same time the work of maintainingaccounts of Long Term Advances (LTA) of all Gazetted
Officers of Government of Bihar State have been transferredto the O/o the Accountant General (A&E), Bihar, Patna on11.12.2006.
8. On transfer of pension authorization work of Non Gazettedstaff of Jharkhand State from Patna to Ranchi in Feb‟03, thisoffice started dealing with the pension authorization of suchpensions w.e.f, 03.02.2003
Functions (Audit)
The functions of the Accountant General (Audit) Jharkhand,Ranchi are: -
1. Preparation of Audit Reports (Revenue Receipts, Civil &Commercial) of Comptroller & Auditor General of India forGovernment of Jharkhand.
2. Contribution of material for inclusion in the Audit Reportsrelating to the Union Government on Direct & Indirect Taxes.
Table 1 presents the summary of the State Government‟s fiscaltransactions during the current year (2008-09) vis-à-vis theprevious year while provides details of receipts anddisbursements as well as the overall fiscal position during thecurrent year.