(1) Every person having any claim against the Municipal Fund shall present a bill at the Municipal Office. Wherever possible, such bill shall be in the form provided for the purpose and the claimant shall date and sign the same and stamp it when necessary.
(2) Where a claimant presents a bill in the form different from the form provided for the purpose, a separate bill in the proper form shall be prepared by the Officer or staff incurring the expenditure and the claimant’s bill or invoice shall be attached thereto as a supporting document.
(3) All bills presented for a claim against the Municipality except a paid bill pertaining to permanent advance shall be received in the Departments or Sections concerned and entered in a Departmental Register of bills received in KMF NO 21.
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(4) The Departments or Sections concerned shall examine the bills and if the claims are in order and supported by sanction of the competent authority, such bills shall be sent to the Accounts Department along with duly prepared Payment Order in KMF NO 22. Necessary certificates prescribed shall be recorded on the Payment Order and the Bills by the Officer or Staff in charge of the Department or Section before sending the bills to the Accounts Department. Full details of the bills, admissibility, deductions and other details shall also be noted in the note sheet of the file.
(5) The Officer and or staff preparing and forwarding the payment order shall be personally responsible to ensure that the bill is complete and affords sufficient information as to the nature of expenditure.
(6) After causing entry of the bills in the Register of bills received maintained by the Accounts Department in KMF No 23, the Accountant shall scrutinise the bills with reference to admissibility, sanction and availability of budget provision to meet the bills in question. If the bills satisfy all the conditions, he shall submit the bills to the Municipal Commissioner or Chief Officer as the case may be, with due noting in the note sheet as well as the payment order, for approval. Where any deficiencies are noticed in the bills, he shall return such bills to the Department or Section concerned indicating the deficiencies.
(7) When the bills are approved for payment by the Municipal Commissioner or Chief Officer as the case may be, he shall make an order of approval at the foot of the payment order and also in the note sheet of the file and send the bill and payment order along with the file immediately to the Accountant for payment.
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(8) The Accountant shall prepare a journal voucher in case of accruable expenditure. He shall prepare a payment voucher for both accruable and non accruable expenditure at the time of making payment. He shall also prepare a cheque for the amount payable as per the bill and payment order and submit them to the Municipal Commissioner or Chief Officer or the officer authorised by him for signature.
(9) On receipt of the cheque duly signed, the Accountant shall issue it to the concerned party after obtaining the signature in the payment voucher or shall immediately remit it to the bank account of the concerned party.
(10) When the bills include recoveries or adjustments of claims due to the Municipality, the payment order and recordings in the note sheet of the file shall indicate the gross amount of the claim, amount recovered or adjusted and the net amount payable to the claimant. The Accountant shall pass necessary journal vouchers for recovery or adjustment made in the bills, and ensure that cheque is issued for the net amount only.
(11) After payment, both the bill and the concerned invoice shall be endorsed with the words ‘paid and cancelled’. The Accountant shall record the payment details on the face of the bill, invoice and on the note sheet of the file. He shall return the file along with an endorsement, ‘paid and cancelled’ on the bill and invoice to the concerned Department or Section. The Accountant shall retain the ‘payment order’ as support for the journal and or payment voucher.
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CHAPTER 7 GENERAL PROCEDURE FOR ACCOUNTING OF PAYMENTS