Treasury Operations

Describe the procedure to the daily closing of accounts of a State Treasury?
Daily closing of Treasury will be made as under:
(a) Treasury maintains Subsidiary Registers in respect of Receipts and Payments major head-wise.
(b) Daily total of transactions of Subsidiary Register in receipts and disbursement will be incorporated in the Cash Book which will then be totaled and the Accountant will draw a Balance Sheet which includes the balances of Sub-Treasury, if any.
(c) The Treasury Officer will check the Cash Book with vouchers and posting in the Subsidiary Register including total of the Subsidiary Register entered in the Cash Book and also verify a certain number of totals. The rest of the totals will be checked by a clerk other than an Accountant.
(d) The Treasurer will also total both sides of the cash book and draws up a balance memorandum which gives details in kind of notes, coins etc. comparing the balance in his hands.
(e) If the results of the Balance Sheet agree, the Treasury Officer will sign the Cash Book and the Balance Sheet and the accounts for the day are closed.
The Treasury Officer verify the cash etc. in the hand of the Treasurer as shown in his balance and then the Strong Room should be double locked and sealed and handed over the same to the guard.

What is Monthly Account?
OR
How does Monthly Closing of Treasury Accounts?
The monthly returns are submitted by the Treasury to the Accountant General in the following manner:
(a) Transactions of the State and the Union are separated by the Treasury.
(b) Schedules of payments made by the Treasury are sent to the Accountant General in two parts as under :
(i) The first batch of payment schedules, supported by necessary voucher is sent to State A.G. on the 10th or 11th of the month.
(ii) Remaining schedules supported vouchers, the List of payments and Cash account accompanied by a certificate of agreement of account balance for the last dale of the month are sent to the State A.G. on the furs! day of succeeding month.
(i) Schedule of Receipts and Expenditure
There are separate schedules of receipts and expenditure for each department, and for each major head-wise not relating to any particular department so that the vouchers should be identified according to classification by the State Accountant General and the Schedules of Debt, Deposit and Remittance transactions.
(ii) List of Payments
List of Payments showing the total payments made during the month Major head-wise.
(iii) Cash Account
Cash Account showing the total receipts made during the month along with top schedule upto Minor Head of accounts.

Briefly discuss the classification in the Treasury Accounts.
The receipts and payments occurring at the Treasury are broadly classified in Treasury Accounts as under:
(a) Receipts and payment of the Central Govt, Union Territories or other State Govts. are classified firstly,
(b) Secondly, with reference to the department of the State Govt, or such heads of receipts and expenditure as may be required by Accountant General.
In this connection it may be mentioned that all transactions of the Central Govt. Union Territories and other State Govts. are shown in the Public Accounts under the following heads of accounts:
(a) Central Govt./Union Territory transactions including Rail, Defence etc. … Major Head: 8658—Suspense Account
(b) Transaction of other State Govt. … Major Head: 8793—Inter-state suspense account of the Govt.
Transactions of State Govt. in respect of Revenue Receipt and Expenditure of Service Departments as per Vouchers and Challans on the basis of heads of accounts incorporated therein are to be classified major head-wise in the List of Payment and Cash Accounts (upto minor head).
(a) List of Payment
All expenditure of Treasury of a month are incorporated in List of Payment against printed heads of account from Subsidiary Register.
(b) Cash Account
All receipts of Treasury of a month are incorporated in Cash Account against printed heads of account from Subsidiary Register.
A few items of transactions of a month do not fall under any printed heads, the same should be in details in Cash Account and List of Payment as the case may be. Accountant General will check the classification of accounts mentioned in bills and vouchers by Departmental officer which were sent to the Accountant General along with Cash accountant and List of Payment.

How Inspection of the Treasury is conducted by Accountant General?
Or
What are the points to be seen during Treasury inspection?
An officer of the State Accountant General inspects the Treasury periodically. There are two parts in the said inspection Reports mentioned below :
(i) Relating to currency i.e. resource and public debt matters which are administered by the Reserve Bank of India.
(ii) Other points relating to the Treasury.
The said inspection reports are sent to the Collector. The first part of the report relating currency is sent to the Currency Officer along with Collector’s replies the action taken by him on the report of State A.G. in case of non-Banking Treasury. The Currency Officer informs the Accountant General whether the action taken is adequate or any further action is required to be taken in case of the non-Banking Treasury.
If the replies of the Inspection Reports submitted by the Collector are not satisfactory, the same may be intimated to the Divisional Commissioner for taking necessary action. The important points and irregularities, if not settled by Divisional Commissioner, may be brought to the notice of the State Govt. by the Accountant General. Any point affecting the Central Govt. is highlighted to the State Govt. by the Accountant General but in special cases the Inspection Reports are sent through the Comptroller and the Auditor General.