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Guidelines for Efficient Cash Management at Health Deptt.

Health,


GOVERNMENT OF WEST BENGAL
DEPARTMENT OF HEALTH & FAMILY WELFARE
STATE FINANCIAL MANAGEMENT GROUP (STATE FMG)
SWASTHYA BHAWAN, A-wing, 3rd Floor
GN – 29, SECTOR – V, SALT LAKE, KOLKATA – 700091

Memo No. WB/State FMG/2/ Date: 07.08.2014

ORDER

During the course of visit of different DH&FWs & BH&FWs it has been noticed that most of the samities especially BH&FWs are retaining liquid cash beyond the permissible limit of Rs. 25000/-and also making cash transactions even where it is possible to make payment through bank. In many cases advances are being drawn for programmes without making proper note-sheet and budget. The amount of unadjusted advances is on the rise and there is inordinate delay in submitting adjustment. Advance registers are also not maintained properly. It may be noted that the earlier order regarding retention of liquid cash holding upto Rs. 25000/- was issued at a time when payment to JSY beneficiaries were paid in cash. Now the mode of cash payment has been dispensed with for JSY. Therefore, the necessity of holding liquid cash has been reduced substantially at present.

In most of the offices especially at block level there are no lockers/ iron safes and security guards are also not available.

For better and efficient cash management as well as for safety and security of public money the following steps are to be followed with immediate effect:-

  • Cash Book should be maintained and closed on daily basis under signature of DDO.
  • Bank Reconciliation Statement (BRS) should be prepared on monthly basis.
  • Cash transaction should be avoided as far as practicable.
  • Any payment beyond Rs. 2500/- be paid by Account Payee cheque.
  • Advance to any individual for any programme/ activity can not be granted save in exceptional circumstances.
  • Where drawal of advance is a must it should be sanctioned on the basis of approved note sheet and budget. In budget, items of cash expenditures are to be identified and advance to be drawn only for cash components. Cash is to be withdrawn either on the date of programme, or one day ahead of the programme.
  • Advances are to be adjusted either by voucher or cash refund within 15 days from the date of completion of programme for which the advances were taken.
  • An advance register is to be maintained where details of advances drawn and adjustment thereof are to be noted chronologically under the signature of DDO. Statement of age-wise pending advances is to be prepared and adjustment of advances is to be monitored on regular basis.
  • Average daily liquid cash holding should not be more than Rs. 10000/- save in exceptional circumstances where approval from the higher authority must be taken.

Sd/- Asok Kr. Roy
Director-Finance
NHM, West Bengal

No. WB/State FMG/2 dated 07.08.2014, Source