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GOVERNMENT OF PAKISTANFINANCE DIVISION(Budget Wing) F.No. 2(2)BR-II/2008-590                                                                  Islamabad, March 09, 2009 OFFICE MEMORANDUM Subject:    REVISED PROCEDURE FOR OPERATION OF LAPSABLE ASSIGNMENT ACCOUNTS FOR FEDERAL GOVERNMENT The undersigned is directed to refer Finance Division letter No. F. 2(2) BR-II/2008-551 dated 03rd March, 2009 on the above subject. 2.         In this regards the minutes of the meeting is enclosed for information and necessary action. Deputy Secretary (BR-II) MINUTES OF THE MEETING HELD ON 5TH MARCH, 2009 UNDER THE CHAIRMANSHIP OF THE ADVISER TO THE PRIME MINISTER ON FINANCE AND REVENUE Subject:          Revised Procedure for Operation of Lapsable Assignment Accounts of Federal Government. A meeting was held on 5th March, 2009 under the Chairmanship of Adviser to the Prime Minister on Finance and Revenue to discuss the issue relating to implementation of Lapsable Assignment Account procedure with reference to PWP-I & II. Ms. Hina Rabbani Khar, Minister of State for Finance was also present. The list of participants is attached at Annex-I. The following decisions were taken:- Stay updated for further details and clarifications regarding the above mentioned or any other notification, please do not hesitate to reach out to our Facebook Group.

GOVERNMENT OF PAKISTANFINANCE DIVISION(Expenditure Wing) F.No. 5(3)Exp.III/2009                                                                   Islamabad the, 10th April, 2010 OFFICE MEMORANDUM Subject:    MEASURES TO ENSURE FISCAL DISCIPLINE The undersigned is directed to say that with a view to improve financial discipline, and streamline the management of public accounts. it has been decided to restrict the validity of cheques upto three months or 30th June, whichever is earlier Accordingly, the cheque issued during a financial year shall be payable at any time within three months after the month of Issue. but not beyond the 30th June, If the currency of cheque expired, owing to its not being presented at the treasury or Bank within the specified period. it may be received back by the drawer who shall then destroy and issue a new cheque in lieu of it provided that the validity of the fresh cheque shall expire on the 301h June. Thus a cheque issued in one financial year shall not be valid from encashment in the next financial year Necessary amendments in the relevant Federal Treasury Rules have been effected and notified by the Finance Division vide Notification No. F 5(3)Exp.III/2009, dated 31st March. 2010, (Copy enclosed) 2          All Ministries/Divisions/Departments are requested to ensure observance of above mentioned financial discipline by strictly adhering to the following instructions.- i.          That the budgetary allocations placed at their disposal are expanded uniformly as Far as possible during the financial year. They should further ensure that all validly accrued liabilities are promptly cleared and are not postponed towards the end of financial year. ii.         All release of funds for development/non-development expenditure be completed by Ministries/Divisions, by 15th May Release of inevitable nature, if any after the said date, would only be made by the Finance Division, after ensuring that the funds are likely to be expended well before the close of the financial year. iii.        There should be no re-appropriation/supplementary grant after 15th May to ensure timely processing of claims by the Miniseries/Divisions/Departments, iv.        All Ministries/Divisions/Departments should submit and draw their claims form AG Office for all validly accrued liabilities on or before 10th June of that financial year. v.         In case of requirement of any additional information by the Accounts Officer (Accountant General’s Office/District Accounts Office/Agency Accounts Office), Accounts Office shall return the un-passed bill urgently and the concerned departments shall respond promptly and resubmit the bill/claim not later than 15th June. vi.        In order to adhere to the aforesaid schedule, all the concerned authorities shall ensure the issuance of sanctions, completion of code formalities and procurement of stores well in time. So that the claims can be presented for pre-audit to the respective Accounts Offices timely. vii.       All PLAs/Assignment Accounts holders should make necessary arrangements as detailed above to ensure encashment of their cheque well in time. All cheques drawn against PLAs/Assignment Accounts shall be cleared upto 30th June. viii       The PIFRA shall generate regular reports for information of all Principal Accounting Officers, apprising them of the latest funding position in respective heads. This would facilitate PAOs to take timely action for making good of the shortfall. 3.         All Ministries/Divisions are requested to communicate the above mentioned instructions to their attached Departments. Sub-ordinate offices, affiliated Autonomous, Semi Autonomous bodies and Corporations Section Officer (Exp III) Government of PakistanFinance Division(Expenditure Wing) Islamabad, the 31′i March, 2010 NOTIFICATION S.R.O. (1)2010.- In exercise of the powers conferred by Article 79 of the Constitution of the Islamic Republic of Pakistan, the President is pleased to direct that the following further amendments shall be made in the Treasury Rules of the Federal Government, namely:- In the aforesaid Rules,- “162. Cheques shall be payable at any time within three months after the month of issue but not beyond the 30th June. Thus a cheque bearing date any time in February is payable at any time up to 31st May. If the currency of the cheque should expire owing to its not being presented at the treasury or Bank within the period specified above, it may be received back by the drawer who should then destroy it and issue a new cheque in lieu of it provided that the validity of the fresh cheque shall expire on the 30th June, Thus a cheque issued in one financial year shall not be valid for encashment in the next financial year.”; “(2) Letter of credit issued in favour of post offices shall lapse at the close of the month for which they are issued. In all other eases, a letter of credit or assignment shall lapse at the close of the financial year in which it is issued,”; and (i) for sub rule (10) the following shall be substituted, namely:- “(10) Any amount remaining undrawn at the close of a financial year shall lapse”; and (ii) sub-rule (11) shall be omitted, [No. 5(3)Exp.III/2009] Deputy Secretary (Exp) Stay updated for further details and clarifications regarding the above mentioned or any other notification, please do not hesitate to reach out to our Facebook Group.

D.O.No.F.4(1)-BR-II/2002-1408 Ministry of Finance Government of Pakistan Pak. Sectt. Block “Q” Islamabad the 1st September, 2008 Subject:-    Working Balance Limit And Investment Of Surplus Funds Belonging To Public Sector Enterprises And Local/Autonomous Bodies Under Federal Government. Kindly refer to the Finance Division’s O.M.No.F.4(1)/2002-BR.II, dated 2nd July, 2003 on the above subject (copy enclosed). Paras-3(e)and (7) of the said O.M read as follows: 3(e)The working balance limit of each organization should be determined with the approval of the administrative ministry in consultation with Finance Division. The account of this working balance may be maintained in a current or savings bank account. (7) The Principal Accounting Officer of the ministry concerned will be responsible for the implementation of the above instructions regarding the PSEs/Local/Autonomous bodies under his control. The Chief Executive of the PSEs/Local/Autonomous Body will be required to issue a certificate on annual basis that the above instructions are being followed in respect of the working balance and surplus funds of the organization. 2.         Implementation of the above instructions not only requires determining working balance limit and investment of surplus funds but it also requires a confirmation, on a regular basis, from the CEOs of the PSEs that they are in compliance with the instructions. It has, however, been observed that the above mentioned instructions are not being fully complied with. 3.         You are requested to kindly advise the Chief Executive Officers of the PSEs/Local/Autonomous Bodies under your administrative control to follow the instructions as indicated at Para-3(e) and (7) of the above referred Finance Division’s O.M., under intimation to Finance Division at the earliest, so that a compliance report, accordingly, is submitted to the Finance Minister. 4.         This issues with the approval of Finance Secretary. With regards, Yours sincerely, Muhammad Ayub Khan Tarin Stay updated for further details and clarifications regarding the above mentioned or any other notification, please do not hesitate to reach out to our Facebook Group.

Government of Pakistan Finance Division (Budget Wing) No.F.3(4)-DS(BR-II)/2008                                                                  Islamabad, the 06th October, 2008 OFFICE MEMORANDUM Subject:                REVISED PROCEDURE FOR OPERATION OF ASSIGNMENT ACCOUNTS OF FEDERAL GOVERNMENT. The undersigned is directed to say that in view of various accounting and payment problems inherent in the present system of Personal Ledger Accounts (PLAs), Government has decided to convert PLAs/Special Drawing Accounts (SDAs) into Assignment Account w.e.f. 01-10-2008. The Revised Assignment Account Procedure will ensure smooth follow of funds to the beneficiaries, withdrawal of funds on need basis and proper booking of the expenditure. Ministries/ Divisions/Departments are requested to follow the following instructions for implementation of the Revised Assignment Account Procedure. (i)                            Revised Procedure as issued by the office of the Controller General of Accounts (CGA) vide its letter No. AC-II/1-39/08-Vol-V/632, dated 24th September, 2008 would be implemented w.e.f. 01-10-2008. (ii)                           The existing Personal Ledger Accounts (PLAs)/Special Drawing Accounts (SDAs) would be replaced with the Assignment Account to be opened by Ministries, Divisions and Departments under F.T.R.170-B with effect from 1st October, 2008. (iii)                          All future budgetary releases w.e.f. 2nd quarter, 2008 onwards would be made in the Assignment Accounts of the Ministries, Divisions and Departments instead of PLAs/SDAs/Bank Accounts. (iv)                          Unspent cash balances, out of releases from Federal Consolidated Fund, lying either in PLAs/SDAs or in Commercial Banks shall be deposited back to Government Account, as provided under the FTR 170-B(10). 30% of such balances may be deposited back in the Government Account by 31-10-2008. Additional 30% may be deposited within three months (upto January 31, 2009) and the remaining balance i.e. 40% may be deposited in the next three months (upto April 30, 2009). (v)                           Ministries, Divisions and Departments will submit the case of conversion of existing PLAs/SDA into Assignment Accounts on Form-A (copy enclosed). A copy of the previous permission for the opening of PLA/SDA shall be enclosed with Form-A. Such cases would be forwarded to the Deputy Secretary (BR-II), Finance Division (Budget Wing) who shall be authorized to endorse the sanction letters for the opening of Assignment Accounts in replacement of the existing PLAs/SDAs. (vi)                          However, future requests for opening of new Assignment Accounts shall be forwarded to the Finance Division (Budget Wing) after the approval of the Principal Accounting Officer (PAO) of the Ministries/Divisions/Departments with full justification for not using the normal mode of payments through the pre-audit system of AGPR/DAO. (vii)                        The new Assignment Accounts would be opened in consultation with the Controller General of Accounts (CGA). (Muhammad Younas) Deputy Secretary (BR-II) Stay updated for further details and clarifications regarding the above mentioned or any other notification, please do not hesitate to reach out to our Facebook Group.

OFFICE OF THE CONTROLLER GENERAL OF ACCOUNTS CGA Complex, G-5/2, ISLAMABAD No.AC-II/1-39/08-Vol-V/632      September 24, 2008 Subject:-    REVISED PROCEDURE FOR OPERATION OF ASSIGNMENT ACCOUNTS OF FEDERAL GOVERNMENT. In order to overcome the existing Accounting problems, the procedure for operation of Assignment account has been revised in light of the provisions contained in chapter 17 of the Accounting Policies and Procedures Manual (APPM). 2.         The revised procedure has been approved by the Finance Secretary. A copy of the revised procedure is enclosed for implementation w.e.f. 1.10-2008. 3.         A notification of amendment in Federal Treasury Rules (FTR 170-B) which was necessary for implementation of the revised procedure has been issued vide Finance Division notification No. S.R.O.(1)/2008, dated 23.9.2008 (copy enclosed). 4.         Any problem encountered during the implementation process may please be communicated to this office for rectification. Director General (Accounts) REVISED PROCEDURE FOR OPERATION OF ASSIGNMENT ACCOUNTS OF FEDERAL GOVERNMENT The procedure relating to Assignment Accounts has been revised. Features of the revised procedure are as follows:- 1. General Policy: -Account name. -The bank branch from where it shall operate -Authorized cheque signatories and specimen signatures. -Budget head from which the allocation of funds will be made. . -Any other condition for operation of the account. 2. RECORDING OF EXPENDITURE: i.                           The funds authorized for utilization through Assignment Account will be noted in the Appropriation Register by the AG/DAO. No expenditure will be recorded at this stage. The expenditure will be recorded in accounts on the issuance of cheques by the authorities allowed to draw on the assignment accounts. In order to record expenditure upon issue of cheque, the concerned DDO shall ensure that a copy of schedule, in the format at Annex-A, is received in the concerned AG/DAO office on a daily basis (or as the cheques are drawn depending on the volume). This schedule will provide the expenditure coding detail for each cheque drawn. Following entry in accounts will be made by the AG/DAO on receipt of this schedule. Dr       Detailed expenditure head (detailed function-cum-object) Cr        G01191-Assignment Account Cheques. Dr        G01191-Assignment Account Cheques Cr        Bank account vi..                      The officers holding Assignment Accounts will ensure that no money is drawn from these accounts unless it is required for immediate disbursement. Moneys will not be drawn for deposit into chest or any bank account. A certificate to this effect will be recorded on the Schedule of Payment mentioned in Para 2 ( i ) above. The cheques for payments on account of purchases/supplies will be drawn in the name of contractor/supplier. 3. BUDGETING AND RECONCILIATION: 4. POST AUDIT: The drawing authorities will submit monthly account of expenditure with copies of paid vouchers to the concerned AG/DAO for post audit purpose by 15th of each month who will carry out 100% post audit. 5. EXCEPTIONS: FORM-A (Sanction for opening of Assignment Account) Ministry of———————– ———————————— No. ——————————————– Islamabad, the—————–, 200x From    :           ————————-,                         ————————-                         Islamabad. To        :           The Accountant General Pakistan Revenues, Islamabad. Subject:-                 OPENING OF LAPSABLE ASSIGNMENT ACCOUNT IN PAK RUPEE TITLED “—————————————————————————————————————————————————————————————————————————————————————————————————–”. Dear Sir, I am directed to convey the sanction of the President for opening of Lapsable Assignment Account in Local Currency for———————————————- titled “——————————————————————————————————————————————————” at National Bank of Pakistan (NBP)—————–Branch, ——————————————-. The above account will be operated jointly by Mr.——————————and Mr.———————–whose specimen signatures duly attested are attached herewith in triplicate. It is therefore, requested that necessary authority may kindly be issued to NBP for the opening of Lapsable Assignment Account at National Bank of Pakistan (NBP)———— Branch ———————-. The above account will be operated /maintained in accordance with the approved revised procedure circulated by the CGA vide No. ————————————————-dated ——————–. The funds in the assignment account will be provided through sanctioned Current/Development budget grant. Government of PakistanFinance Division(BR Wing) ——- No. ———————-                                           Islamabad, the,—————, 200x. Forwarded to Accountant General Pakistan Revenues, Islamabad for further necessary action. Name——————————- Designation————————— Tele——————- Copy forwarded for information to: A.O (T.M Section) AGPR, Islamabad. FORM-B (Authority to NBP for opening of Assignment Account)OFFICE OF THE ACCOUNTANT GENERAL PAKISTAN REVENUESG-8/4 ISLAMABAD No. ———————————                                        Dated: ——————-,200x. To Manager National Bank of Pakistan—————————–. Subject:-                OPENING OF LAPSABLE ASSIGNMENT ACCOUNT IN PAK RUPEE TITLED “————————————————————————————————————————————————————————————-“. In pursuance of——————————-Division, Islamabad letter No.———————————————-, dated —————– bearing Finance Division Budget Wing endorsement No.——————————— , dated—————–, you are hereby authorized to open a lapsable Assignment Account with the above title in the National Bank of Pakistan, —————————Branch at———————. by Mr. —————————————————–and Mr.——————————– areenclosed. Encl: As above (——————– ) Assistant Accountant General/Accounts Officer Tele: ———— Copy to: OFFICE OF THEACCOUNTANT GENERAL PAKISTAN REVENUEG-8/4, ISLAMABAD. No. Conditions for Opening of Lapsable Assignment Account, in Pak Rupees, for Titled “————————————————————————–“. 1.         The revised procedure of assignment account circulated vide No.—————————————————————-dated——————will be followed. 2.         The account will be operated jointly by following two officers: 3.         The above account shall be lapsable at the end of each financial year. 4.         Regular accounts of the expenditure out of this Assignment Account will be auditable by the Auditor General of Pakistan. 5.         The above terms are subject to modification from time to time for better financial discipline. Name———————————– Assistant Accountant General/Accounts Officer Tele: ————————– FORM-C (Sanction for Placement of Funds in Assignment Account) No.—————————- Government of Pakistan Ministry of————– Islamabad the —————200x. The Accountant General Pakistan Revenues, ———————— Subject:-              SANCTION FOR PLACEMENT OF AMOUNT AS CEILING IN THE ASSIGNMENT ACCOUNT RELATING TO ———————– —————————————————————————————————————————————————————————————————————— Dear Sir, I am directed to convey the sanction of the President of Islamic Republic of Pakistan to the placement of an amount of Rs. ———— (Rupees —————————————only) in the assignment account titled ————————————————————————————————————————- as ceiling for the quarter/month —————– of the current financial year 200x-200x. 2.                            It is requested that the Manager National Bank of Pakistan ——————————————-Branch ————————- may be advised to arrange payment against above mentioned ceiling of Rs.———————.on the receipt of cheque and prescribed schedule of payment duly signed by the authorized signatories of the account. 3.                            The above assignment of funds has been made against budgetary allocation in Grant No.——————————————————————————–Cost centre

No.F.1(1)-Reg.6/2008 GOVERNMENT OF PAKISTANFINANCE DIVISION(Regulations Wing) Islamabad, the 24th June, 2008 NOTIFICATION                                S.R.O. No.           (1) /2008. In exercise of the powers conferred by sub-section (1) of section 25 of the Civil Servant Act, 1973 (LXXI of 1973), read with Notification No SRO 120(I)/98, dated the 27th February, 1998, the Prime Minister is pleased to direct that in Civil Service Regulations the following further amendments shall be made and shall be deemed to have been so made on the 31st March, 2008, namely:- In the aforesaid Regulations, in Article 474 B, for clause (a), the following new clauses shall be substituted, namely:- “(a)      After a service of five years or more but less than ten years, a gratuity not exceeding one month’s emoluments for each completed year of service. If a civil servant dies in service, the rate shall be one and a half month’s emoluments for each completed year of service. If the emoluments of a civil servant have been reduced during the last twelve months or thirty six months of his service, as the case may be, otherwise than as a penalty, average emoluments may, at the discretion of the authority which has the power to sanction gratuity, be substituted for emoluments. (aa)    If the civil servants are unable to work and retire on account of invalidation due to illness, accident, earthquake or terrorism will get complete pension benefits, and the condition of ten years service shall not apply to such cases.” Deputy Secretary (Reg.III) Stay updated for further details and clarifications regarding the above mentioned or any other notification, please do not hesitate to reach out to our Facebook Group.