Course Materials on

Shish Haider Chowdhury
Finance Controller (Army), Pay-1
Dhaka Cantonment, Dhaka
The GFR first introduced in British India;
After 1947 the then Pakistani Regime accepted it
and introduced two- GFR and East Pakistan
Financial Rules;
In Bangladesh work on GFR for the first time was
entrusted to RIBEC project;
Under the guidance of a group of expert, the GFR
along with some were amended;
The office orders, memorandums and circulars
were included in the GFR which was approved the
Honourable President.
Accounts officer means Controller General of
Accounts or any subordinate officer under his
Comptroller and Auditor General refers to the
Comptroller and Auditor General of Bangladesh as
mentioned in the constitution;
Competent authority means the authority
empowered by the Government;
Controlling officer means the head of the
department or any body under his subordination
empowered for revenue collection or making
DDO means the drawing and disbursing
officer empowered by the competent authority;
Budget means the annual financial statement
of the government;
Government accounts means the consolidated
fund and the public accounts of the republic as
mentioned in the article 84 and 86 of the
Principle Accounting Officer means the
Secretary to the Ministry;
Every public officer is expected to exercise the
same vigilance in respect of expenditure
incurred from public moneys as a person of
ordinary prudence would exercise in respect of
expenditure of his own money;
The expenditure should not be prima facie more
than the occasion demands;
No authority should exercise its powers of
sanctioning expenditure to pass an order which
will be directly or indirectly to his own
Public money should not be utilised for the benefit
of a particular person or a section of community,
unless--the amount of expenditure involved is insignificant; or
 a claim for the amount could be enforced in a court of
 the expenditure is in pursuance of a recognised policy or
The amount of allowances granted to meet
expenditure of a particular type should be so
regulated that allowances are not on the whole a
source of profit to the recipients.
Recoding of financial transactions in the books of
accounts immediately after their occurrence
Project/government money deposited in the
designated bank account
Project money can’t be invested elsewhere or
deposited in any other account without approval
from competent authority
Disbursement from project money only after
approved budget allocation, not in anticipation of
allocation in the future
Expenditure from project fund should be made with
such care as it would be done in case of his/her
personal fund
Expenditure should not be incurred with direct or
indirect intention of any self benefit through his/her
own authorization
Expenditure towards any allowance not to become a
source of regular income of any person
Financial and other authority can be delegated to
subordinate officers. Head of office remains
responsible for financial discipline of his/her
department or any other offices of subordinate DDOs
Disbursement from project fund for the planned
activities only
Ensure appropriate documentation before payment
regarding allocation, work order, goods receipt note as
per work order and financial authority
Each head of a department is responsible for
enforcing financial order and strict economy at
every step;
He is responsible for observance of all relevant
financial rules and regulations both by his own
office and by subordinate disbursing officers;
A controlling officer must see not only that the
total expenditure is kept within the limits but
also that the funds allotted to spending units
are expended in the public interest and upon
the expenditure does not exceed the budget
the expenditure is incurred for the purpose for
which funds have been provided;
the expenditure is incurred in public interest;
adequate control mechanism is functioning in his
department for prevention, detection of errors and
irregularities in the financial proceedings of his
subordinate offices and to guard against waste and
loss of public money; and
mechanism or checks contemplated.
responsible and accountable for financial
management of his Ministry;
ensure that the public funds appropriated to the
Ministry are used for the purpose for which they
were meant;
be responsible for the effective, efficient,
economical and transparent use of the resources;
appear before the PAC and any other Standing
Committee for examination;
review and monitor regularly the performance of
the programmes and projects;
responsible for preparation of expenditure and
other statements relating to his Ministry;
shall ensure that his Ministry maintains proper
records of transactions and adopts systems
internal controls;
shall ensure that his Ministry Government
procurement procedure-PPR for procurement
of Goods, Works and Services in a fair,
equitable, transparent, competitive and costeffective manner;
 Officers
 Establishment
Honorarium and Allowances;
Supplies & Services; and
Head of the Department is
responsible for the expenditure:
- of his own and
- of his subordinate offices
The Secretary shall be responsible for ensure that (a) funds allocated to his Ministry/Division, its
attached Departments or subordinate offices are
spent for the purpose for which they are allocated ;
(b) the funds are spent strictly in accordance with
the rules and regulations, and the expenditure is
not, prima-facie, more than the occasion demands
and that every Government servant exercises the
same vigilance in respect of expenditure incurred
from public funds as a person of ordinary
prudence would exercise in respect of expenditure
of his own money ;
(c) actual expenditure does not exceed the sanctioned
budget allocation made for the respective
items/operating units, etc. ;
(d) no expenditure is incurred in anticipation of
authorisation of an annual Budget/Supplementary
grants, without the prior concurrence of the Finance
Division ;
(e) all payments and receipts are correctly classified
under appropriate codes of the Classification Chart and
the departmental accounts are reconciled every month
with the figures communicated by the CGA and the
Chief Accounts Officer.
(f) audit objections are promptly settled.
Any loss of government asset should
be reported without delay:
- to immediate superior officials;
- to Chief Accounts Office/
Concerned Accounts Office.
Every government officer is
responsible for loss incurred due to:
- the negligence of his own; and
- the negligence of the other officials
to which s/he contributed.
It is the duty of the controlling
officers to see that all sums due to
Government are regularly and
- Assessed
- Realized and
- Duly credited to Public Account
Obtain monthly Accounts and
Return from the subordinate offices
for the same;
No amount be left outstanding
without sufficient reasons;
Where dues appear to be
irrecoverable, orders of competent
authority must be sought out.
No Authority or Department,
without the previous consent of
Finance Division, may issue an
order (other than delegated power)
 There is any financial involvement;
 Involve any relinquishment of revenue.
To be communicated to the Chief
Accounts Officer/Accounts Office;
 Amounts should be expressed
both in figures and in words;
 Must be signed by an authorized
gazetted officer.
Should be stated distinctly whether
provision has or has not made in the
budget estimates;
 If not made, whether it is arranged
by valid re-appropriation.
From the date specified in the
sanction letter;
If not specified, from the date of
order conveying the sanction.
If not expressly directed by the Govt.
Departmental Revenue and Expenditure
estimates should be prepared in two
Part-1 relating to revenue and ordinary
expenditure (standing and fluctuating
Part-2 relating to new expenditure
On the basis of utmost foresight ;
 All foreseeable items should be provided
 Should be in proper heads;
 MOF has right to reduce the provision of
any item;
 Should be restricted to the absolute
minimum necessary.
Should be surrendered without
waiting for ending the financial
Should not be held for future
possible excess.
The Controller General of Accounts
The Controller General of Accounts and
subordinate offices such as UAO, DAO, DCA
and CAO are responsible for annual accounts.
As a collections agent of the government, the
CGA through these office is responsible for
proper accounting of collections of revenue and
ensuring that the amounts are quickly credited
to the government account.
Receipts and payments based on budget;
Pre-audit for the claims submitted;
Keeping proper records before making any
Pension and other safety net payments;
Reconciliation with executives and banks;
Preparation of periodical accounts including
annual appropriation A/C and finance A/C;
Technical advice to the executives.
The Finance Accounts reflect total annual
receipt and expenditure of the government
together with relevant financial statements.
The cash balance of the government is also
shown in this statement;
Preparation of the Annual Finance Accounts is
vested with the C&AG according to Article 4
of the Comptroller and Auditor General
(Additional Functions) Act, 1974.
The appropriation is a comparative statement
showing detailed head-wise/code-wise final
budgetary allocation and actual expenditure of
different ministries and their subordinate offices
with explanations of variances (if any);
According to Article 128 of the Constitution and
Rule 4 of the Comptroller and Auditor General
(Additional functions) Act 1974, preparation of the
Appropriation Accounts by the concerned Accounts
Offices, it is audited and certified by the C&AG
with necessary comments.
All revenues received by the Government
by way of taxes and Non-Tax Revenues are
credited into the Consolidated Fund;
 All loans raised by the Government by
issue of public notifications, treasury bills
and loans obtained from development
partners are credited into this fund;
 All expenditure of the government is
incurred from this fund and no amount can
be drawn from the fund without
Parliament’s approval.
Public Account is constituted according to the
the transactions relate to debt other than those
included in the Consolidated Fund;
The transactions under debt, deposits and advances
in this part are those in respect of which
Government incurs a liability to repay the money
The receipts under Public Account do not constitute
normal receipts of Government;
Parliamentary authorization for payments from the
Public Account is not required.
To maintain cash / bank accounts of the
To dispose of the claims against government
and maintain accounts;
To manage and ensure safe custody of various
stamps and other valuable.
Through Accounts offices e.g. CAO,
Department having cheque issuing
Department having cash drawing
Custom Treasury; and
Bangladesh missions abroad.
Thank you very much

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