security deposit

Security Deposits and Guarantees (Rule $114$)

• Definition and Purpose: A security deposit is defined as a safety guarantee. The primary objective is to secure the government against financial loss.

• Applicability: Security deposits must be pledged by government employees who are entrusted with the care and custody of cash or stores. This includes both gazetted and non-gazetted employees.

• Scope of "Stores": As per the notes in Rule $114$, "stores" in this context does not refer to office furniture. For departments such as the Public Works Department (PWD), stores include tools, bitumens, rods, and various machines required for construction.

• Practical Example: A cashier in a District Treasury Office (DTO) who collects various taxes every day may have a huge amount of money in their custody. To safeguard the interest of the government in case that money is lost, the cashier must provide a security deposit.

• Prohibited Forms: A security deposit cannot be provided in the form of raw cash.

• Accepted Forms: Deposits must be made using specific financial certificates, such as:

  • National Saving Certificates (NSC) from a post office.

  • Fixed Deposits.

• PWD Specifics: Most special rules for PWD stores are currently redundant because materials are now typically provided by contractors rather than being maintained in government stores.

Destruction of Official and Personal Records

• Legal Framework: The guidelines for the destruction of records are prescribed in Rule $123$, Rule $47$, and Appendix $4$ (found on page $264$).

• Definition of Records: Includes government documents, official documents, and personal documents of an employee relating to their service career.

• Mandatory Approvals: Records can only be destroyed with the approval of the government, subject to the concurrence of the Accountant General's (AG) office. The AG's office ensures that all claims have been settled and all audit "paras" (paragraphs) have been dropped.

• Audit-Related Restrictions: Even if the preservation period prescribed by departmental rules has expired, documents must not be destroyed if:

  • An audit objection is outstanding.

  • Accounts have not been completely checked and accepted by the audit office.

Specific Records Exempt from Destruction

• Statute of Limitations: Records connected with expenditure that are within the statute of limitations must not be destroyed. This includes records related to court cases involving unfruitful or wasteful expenditure that have not yet been settled.

• Unfinished Projects: Records connected with project expenditure, schemes, or works must be preserved even if the project has exceeded its scheduled timeline. Records must be kept until the project is completed and handed over to the concerned department.

• Continuing Schemes: Files for continuing schemes must be maintained until the scheme is officially closed and all payments, audit objections, and accounts are settled.

• Service Matters of Permanent Character: The following must not be destroyed on any account:

  • Records connected with service claims and personal matters.

  • Orders and sanctions of a permanent character (e.g., Office Memorandums or Circulars) until they are revised or cancelled by a new operational order.

Period of Preservation for Administrative Documents

• Service Books: Service books and records should be preserved for $5$ years after the death or retirement of the employee, provided all claims, pensions, and outstanding dues are settled.

• Acquaintance Rolls: Rules suggest a preservation period of $15$ years for pay and allowance acquaintance rolls, though departments often maintain them for $30$ years or more to address long-term service claims.

• Contingent Expenditure: Registers for contingent expenditure (office supplies, supplier payments) can be destroyed after $5$ years, provided all supplier claims are settled.

• Budget Estimates: Detailed estimates of budget expenditure are reserved for $5$ years.

• TA Bills and Acquaintance Bills: Traveling Allowance (TA) bills and registers should be retained for $3$ years after the claims have been paid and settled.

• Leave Accounts: Leave accounts for non-gazetted servants are retained for $3$ years after death or retirement, assuming leave encashment is finalized.

• Pension Cases: Standard preservation is $5$ years after retirement, but records must be maintained longer if the case remains unsettled.

Revenue Receipts and Controlling Officer's Responsibility

• Rule $124$ (Chapter $4$): This rule dictates the responsibilities of departmental offices that collect daily revenue.

• Immediate Deposit: All collected dues must be deposited into government accounts immediately.

• Verification Duty: The Controlling Officer is responsible for checking the amount collected by the cashier at the end of the day before signing off or depositing the money. The responsibility does not rest solely on the cashier; it is the duty of the officer entrusted with the department's revenue collection oversight.

• Register Maintenance: Every collection must be formally recorded in a designated register.

Preparation and Disbursement of Pay and Allowances

• Rule $141$ (Chapter $5$): Pertains to the preparation of pay bills.

• Role of the Treasury: Treasuries now typically prepare the bills. Treasury officers send payment schedules to departments (e.g., SAD) for verification around the end of the month (e.g., the $28^{th}$ or $29^{th}$).

• Verification Points: Departments must check for errors in basic pay, due increments, and additional pay.

• Timelines: Treasury usually prepares salaries on the $23^{rd}$ of the month. Verified schedules must be signed by the Head of Office before being presented to the treasury for final payment.

• Holiday Disbursement: If the first four days of a month are public holidays, the government may order pay and allowances to be disbursed on the last open working day before the holidays (common during the Christmas period).

• Retirement Pre-Audit: The last pay bill of a gazetted officer must be audited by the Accountant General (pre-audit) to verify there are no outstanding dues before payment. For non-gazetted officers, the head of the office performs this verification.

• No Demand Certificate: Every retiring employee must obtain a "No Demand Certificate" to confirm they have no outstanding government dues.

Procedures Following the Death of a Payee

• Rule $142$: Payment of pay, allowances, or pension is made up to and including the day of the individual's death. The specific hour of death does not affect the claim for that final day.

• Documentation for Claims: Family members seeking dues must provide a death certificate.

• Nomination Rules:

  • Every employee should nominate family members in their service records.

  • Under pension rules, the spouse is generally the first nominee (Rule $48$).

  • A nomination remains valid until it is revised by the employee.

• Absence of Nomination: If no nomination or marriage certificate exists, the department requires a court order to determine the rightful claimant. A simple affidavit is not considered sufficient.

• Disputes Among Claimants: In cases where multiple parties (e.g., first wife, second wife, mother, or sister) claim benefits, the department should collect all applications. The decision then rests with the Law Department, the Pension Cell, or the Finance Department. Some departments hold compromise meetings to distribute benefits (GPF, DCRG, leave encashment) among claimants.

• Outstanding Dues: All government dues must be recovered from the deceased's final claims before payment to the family.

• Indemnity Bond: An indemnity bond can be executed to pay a claimant if the officer is satisfied, though this is discouraged because it requires paying double the amount.

Transfer of Office and Handing Over Procedures

• Rule $149$ (Page $61$): Governs the process when a gazetted officer is transferred from one office or district to another.

• Handing and Taking Over: The outgoing officer is the "relieved" officer and the incoming one is the "relieving" officer.

• Verification Steps for Relieving Officers:

  • Checking and counting the cash book.

  • Verifying bank passbooks and statements to ensure they tally with the cash book entries.

  • Counting the cash in hand, including "imprest" or permanent advances.

  • Counting remaining leaves in checkbooks (e.g., verifying if a book has all $50$ counterfoils).

• Reporting Discrepancies: If the cash or bank records do not tally, the relieving officer must still take charge but must formally notify superior authorities of the discrepancy in the charge report.

• Charge Report: This report must be sent to the Treasury Officer and the Accountant General's office so they can record the change in official responsibility.

Questions & Discussion

• Question (Audience): How many years do scheme files stay in the department?

• Answer: Scheme files must be kept until the project is completed, the scheme is implemented, and it has been handed over. If there are audit objections, the files cannot be destroyed until those specific objections are settled by the AG. Continuing schemes are preserved indefinitely until they are closed.

• Question (Audience): Is the No Demand Certificate an assurance by the department?

• Answer: Yes, it is an assurance that there are no outstanding dues. It is mandatory for both gazetted and non-gazetted officials.

• Question (Audience): What happens if a second wife claims the pension?

• Answer: According to pension rules, the first wife is the primary nominee. An exclusion of the first wife requires a relaxation of Rule $48$. Departments often face conflicting claims from mothers or sisters. In these cases, the department should allow the government (Finance Pension Cell or Law Department) or the courts to decide on the distribution of benefits.

• Question (Audience): Do NPS (New Pension Scheme) participants make nominations?

• Answer: Yes, NPS participants also indicate nominees and shares of the amount accumulated in the fund. If a shift in family status occurs (e.g., marriage), the employee must revise their nomination, as the original nomination remains valid until updated.