District Treasury: The Lifeline of District Administration

Analytical Note
On
District Treasury: The Lifeline of District Administration
By Saumitra Mohan

District Treasury: An Introduction

The administrative control of treasuries in the state and Pay and Accounts Offices, Kolkata is with the Finance Department of the state government which is duly assisted by the Director of Treasuries and Accounts, West Bengal. The Collectors in respect of the treasuries and the Director of Treasuries and Accounts, West Bengal in respect of Kolkata Pay and Accounts Offices are the immediate controlling officers. The Treasury Officer and the Pay and Accounts Officer, Kolkata are responsible for compilation and rendition of initial monthly accounts to the Principal Accountant General, (A & E), West Bengal. These treasuries play a pivotal role in financial administration of Govt of West Bengal administered by the Finance Department under the direct supervision of the Directorate of Treasuries and Accounts, West Bengal. These treasuries are banking treasuries (i.e. their payments and receipts are mediated through authorized banks) rendering the accounts of both the treasuries to the Principal Accountant General (A&E), West Bengal, Kolkata.

Jalpaiguri Treasury: In Retrospect

In undivided Bengal, Jalpaiguri was the divisional headquarters of the then Rajshahi division. Since then, Jalpaiguri has been playing a very important role in the administration of Bengal. The District Treasury here is an inalienable part thereof and has been witness to myriad memorable incidents and events. Jalpaiguri Treasury was bifurcated into two treasuries namely Treasury I and Treasury II with effect from 2nd May, 1990 for administrative convenience. The financial transaction of Jalpaiguri Treasuries I and II has increased manifold since then. They mainly deals with the public in making various payments and also pensions to the pensioners of various categories. Both the treasuries have to send a fortnightly reports detailing treasury accounts to the Accountant General based in Kolkata by the 15th and 5th of every month.

Treasury in Operation:

Guided by the Accounts Code published by the Government of India, there are certain registers, which are being maintained as per the statutory requirements. They include:
1. Receipt and Payments’ Register;
2. Cashbooks;
3. Cheque Register;
4. Subsidiary Register;
5. Register for Group Insurance;
6. Pensioner’s Serial Register;
7. Bank-wise PPO Register;
8. Register for Personnel Ledger Account;
9. Register for Local Fund Account;
10. Stamps Indent Register;
11. Stamps Stock Register; and
12. Stamps Issue Register.

As statutory registers are being maintained and soft copies are not being accepted by the Accountant General’s Office, there is a parallel system to maintain these records. This results in duplication of effort as well as unnecessary wastage of time, money and energy.
While Treasury-I deals mainly with the accounts, Treasury-II deals with pensions after the above-mentioned bifurcation in 1990. Treasury I and II both are headed by a Treasury Officer who represents the District Magistrate who is said not only to be the custodian of the district treasury but also its supreme controller. After the computerization of the district treasury in this district during 1998-99, a specialized software called Computerized Treasury Management System (CTMS) developed by the CMC Limited has effectively facilitated and simplified the sundry operations and activities undertaken by the two treasuries here. Even though computerization should have resulted in elimination of the manual filing system, but for various reasons, they still maintain records manually in the conventional way. Notwithstanding this, computerization has definitely resulted not only in simplifying and improving the work output, it has also resulted in expediting the work as well as in saving a lot of time. The specialized software used here is so designed that it hardly leaves any scope for manipulation or error. The software has provided the treasuries with almost a foolproof system against any the usual human error or manipulation. The entire database and records pertaining to the two treasuries have been adequately entered into and can be easily accessed by the officers concerned as the treasury computers are connected through local area network. The system also allows for accessing and following up on the status of any bill or account by the authorities who can, because of LAN, with their unique login identity and passwords can enter the system and do the needful at their wish.
A specific code number is allotted to each TO/ATO. Previously, if a DDO used to be transferred, then DDO code had to be changed accordingly. Now this problem has been taken care of by the new software in operation. There is a process history, which is used by the TO/ATO/Dealing Assistant to see the work done at a later date for audit and scrutiny. Any officer passing or signing the bill, is not supposed to sign the cheque. This is meant as a check to avoid any foul play. The present practice is that Treasury Officer signs the bill and the ATO signs the cheque. Since the cheque is printed by the computerized cheque section following the passage of bill, there is integration of manual and computerized processes of bill passing. The Cheque Section maintains the record of number of cheques printed, number of cheques delivered, number of cheques undelivered and stock of cheques.

Passage of bills:

All bills submitted by employees or different individuals or institutions working for various government departments after adequate authentication by the concerned Drawing and Disbursing Officers come to the treasuries where they are properly entered into the computer which automatically generates unique token number against each bill submitted. The token numbers become the key information for the concerned departments for following up on the bills. The bills after detailed scrutiny by the dealing clerks and officers including the Accountant and the Treasury Officer are passed and the payment is finally made through cheques encashable at the authorized banks operating Govt accounts. If the bills are objected by the scrutinizing officers, then through reference section they are collected back by the DDOs or their representative staff and they are resubmitted after the objected error is rectified. If the bills meet all the requirements, then the cheques are printed and delivered to the DDOs or their representative staff on production of the printed tokens. These cheques are of two types i.e. account payee cheques and open or bearer cheques as per the need. The cheques are finally encashable at the authorized bank. The bank later sends back to the Treasury the encashed or paid cheques. The Treasury itself keeps the counterfoil of the cheques printed in the Compilation Section. And all such details go to the Compilation Section. If the need be, there could also be revalidation, correction or cancellation of the cheques printed. However, there is a problem when the cheques have been delivered physically but have not been delivered on machine but since it is a rare occurrence, it is not as much of a problem.
All the payments are made only when there is authorized allotment mentioning the related head of expenditure though there are certain payments, which could be made in anticipation of allotment including establishment charges and employee salaries as per the govt. directive. Any receipt of money by the treasury is through the Treasury Challans submitted at the authorized bank, which is the State Bank of India for this district.
The work relating to employee pensions is so massive that it necessitated the above-mentioned division of the district treasury. The pension matters are dealt with by the Treasury II. There are usually two types of pensions namely those belonging to the State Government and those belonging to the Central Government. The latter come directly to the Treasury, the former come through the State Accountant General to the Treasury Officer in the form of a Pension Payment Order or PPO as it is popularly called. PPO received by the Treasury Officer should be examined very carefully whether the same is genuine or fake. Photo, specimen signature, personal mark and other such details need to be carefully verified along with the PPO. After processing and going through the routine precautionary measures, passed pension goes to the bank account of the pensioner for payment. The pensioner has to, at least once in a year, get his continued existence certified by a gazetted officer or renowned public servant.

Strong Room:

There is a well-secured, well-constructed Strong Room in the Treasury, which is under the overall supervision and control of Treasury I. The District Magistrate, because of his being the custodian of the district treasury, is also the custodian of the Strong Room. It contains all the valuables subsuming revenue stamps, non-judicial and notarial stamp, ballot papers, ballot boxes, question papers, other very important documents and artifacts as well as any such item or effect which need to be properly and safely kept. The issuance of stamps of different denominations and value are strictly monitored and account of the same is closely watched and maintained.

Local Fund & Personnel Ledger:

Then there are Local Fund and Personnel Ledger Accounts. While the former has the development-oriented and other funds relating to such local bodies of the district, which do not have treasuries in their respective subdivisions, the latter relates to the funds set aside for the expenses of the District Magistrate, Sub-Divisional Officer (Sadar) and Land Acquisition Collector. One unique feature of the Local Fund is that unlike the usual budgetary allotments, which have to be remitted back in case of not utilization, the funds in Local Fund do not face that fate as being development-oriented funds, they remain there for requisite utilization.

Travelling and Daily Allowances:

Travelling allowance is the allowance given to a govt. employee to cover the expenses, which one incurs on travelling in connection with his job or as per his entitlements for such travels. It includes allowances granted for the maintenance of conveyance, horse and tents. It is only compensatory in nature and cannot be misused as a source of profit. If a govt. employee is found claiming for than his/her actual expenses over such travel, one may be duly penalized as per the Govt. rules framed for the purpose.
Daily allowance is a uniform allowance for each day of absence from headquarters only at a place beyond a radius of eight kilometres, which is intended to cover the ordinary daily charges incurred by a govt. employee in consequence of such absence while on tour.

Observations and Reflections:

The computerization of the treasuries has definitely led to enhanced efficiency, expediting the workflow, reduction of duplication at many levels as well as facile monitoring and supervision of the entire operations of the two treasuries by the authorities. The various advantages stemming from computerization inter alia include easy record-keeping, quick and easy preparation of reports, simplification of work of the Cheque Section, fool-proof receipt and processing of bills, and easy auditing and quick attending on audit queries.
But that does not mean that everything is so hunky dory with the functioning of these treasuries. First of all, the very fact that the manual records are still being maintained results not only in unnecessary replication of work which could otherwise have saved precious manhours of the two treasuries which could in turn be productively utilized in making the treasury operations further effective and efficient.
Secondly, the systems being slow, lots of time is wasted in taking back-up of the updated treasury records. The extant systems could be replaced by newer, faster ones but again resource crunch has put paid to any such plans.
Thirdly, the bother of sending fortnightly reports to the Office of Accountant General is very much avoidable. As mentioned above, it involves loss of human energy, time and money which could be productively utilized in attending to the other pressing assignments and operations at the treasury. It would be very much in the fitness of things if all the state treasuries could be linked up through a Wide Area Network or WAN to Directorate of Treasuries and Accountant General’s Office using the very easily available technology. This single act would not only result in saving a lot of time, energy and money but would also facilitate incessant, regular online monitoring and supervision of the treasury functioning all over the State of West Bengal. For a state like ours, which is already strapped for resources, it is very much advisable to go for WAN as early as possible.
With WAN coming into existence, it would be feasible for online entry and transmission of data. Then, the state’s financial managers would not have to depend on the fortnightly reports, returns, vouchers etc sent in hard copy and, of course, then there would not be any case of delayed dispatch of reports by certain treasuries as that itself would become passé with WAN. Till WAN is thought about and operationalized, it would be advisable for the financial monitors to accept the soft copies of the records and reports.
Fourthly, there is a need for clarification of rules relating to group insurance and organization of the accounts of the same, as the entire group insurance fund has got haphazard owing to hazy comprehension about its operationalization. The State Government and the Accountant General both need to coordinate their intelligence and effort for better functioning of the group insurance funds.
Fifthly, the absence of seating arrangements or a Waiting Room for the members of public, particularly the senior citizens, not only causes unnecessary inconvenience to them but also does not reflect well on treasury functioning.
Sixthly and perhaps most importantly, there is a scarcity of staff in the treasury. As against the 62 sanctioned posts, there are only 36 staff members with the two treasuries resulting in a lot of workload and consequent work-pressure on the existing employees.
Seventhly, it has often been felt and suggested that there should a branch of the State Bank of India in the convenient proximity of the District Treasury so that treasury’s pecuniary operations could be made more efficient, speedier and safer.
Lastly, there is definitely a need for a more professional approach towards the work. The very look and get-up of the office need to be improved and in this everyone on the staff needs to chip in. A professional work atmosphere with increased commitment and dedication for the public service need to be inculcated in certain members of the staff so as to make them give back to the country the value for the money they receive as salary.

Software-related Hard Problems:

· For heads having head no. exceeding 8000, the reports are being produced in major heads only and not in minor heads e.g. 8793 (interstate suspense head), 8658 (adjustable head with GOI) etc., reports are produced in major heads only.
· At times, the treasury raises objections after checking the allotment for the year marked, expenditure, balance etc. With the currently used software, it becomes difficult to convince the DDO the basis of objection on the bill.
· The computers in the two treasuries are infected with viruses and this aspect needs to be urgently attended to and there should be installed updated virus detecting software for their automatic removal and this software needs to be periodically updated.
· Even though all the officers were imparted the necessary orientation and training in computers and the relevant software including ORACLE, there is a need for such periodical and more updated training so that the same may equip the officers to deal with any technological or software-related glitches on their own.
· There is an urgent need for further improvement in the software installed, as CTMS does not allow for easy and smart data-retrieval. With the present software, it is not possible to get the segregated, sector-wise and differentiated data as per the need. Hence, data-mining needs to be spruced up further and made more effective.
· Also, the present software does not allow for software manipulation as it was thought to be a check against any foul-play or malpractice but the same has often proved to be a great problem. If, because of some human error, a wrong command is given, the same can not be rectified and that often becomes a big headache. So, some leeway in relation to the software should be given to a responsible officer in the treasury who could be no other than Treasury Officer (also because he is the functional head of the treasury) in this case who is anyhow eventually responsible for any lapses in the functioning of the treasury.

Hardware-related Soft Problems:

· At times, printers create problems and become non-functional. These are being maintained by the Tata Infotech service engineers who are based outside Jalpaiguri and usually, it takes some time for repairing. The implication of this fact is not difficult to realize. If the printers in the cheque section do not function, then the productivity of the treasury could be zilch for the day.
· At present, there are 30 computers in the treasury. There are some problems of maintenance by staff also as these are not regularly dusted. The habit of taking tea or coffee while working on computers, can prove suicidal for systems.
· The non-availability of a scanner in the District Treasury is another handicap faced while operating the CTMS. Since the DDO’s signature cannot be scanned, as the same is not available, these are maintained manually and this practice definitely does not conform to the requirements of a computerized treasury.
· Last but not the least, there is also the apprehension of server crash if the temperature rises beyond certain limit and there is no alternative mechanism in place.


Notwithstanding all the above problems, the two treasuries have been functioning very well and are among the best in the State of West Bengal. If only the above problems could be attended in time, their productivity would only go up.