PIS Financial bye Laws

In exercise of the powers vested in it, vide Rule 15 of the ‘Rules of the Punjab State Institute of Sports, the Executive Committee make the following bye-laws for the regulation of the business of the Institute in the matters of approval of budgets, sanction to expenditure and maintenance of accounts of Institute.


1.  These by-laws shall be called “The Punjab State Institute of Sports Financial Bye-Laws 2015. These bye laws lay down the procedure for:-
i.    Custody, deposit and withdrawal of funds, etc;
ii.    The preparation and approval of the budget estimates;
iii.    The sanctioning of expenditure and appropriation of funds;
iv.    Keeping the account of the Institute and audit thereof;
v.    Making and execution of contracts; and
vi.    The investment of funds including sale or alteration such investment.
These bye-laws shall come into force from the date of approval of these rules.
2.    1. Definition:-
Unless there be anything repugnant in the subject or context, the terms defined in the rules of the Punjab State Institute of Sports are used in these by laws in the sense therein explained.
2.   2. Following terms have been used, unless there in anything repugnant in the subject or context, in the sense here explained.
1)    Fund: means funds of the institute
2)    Bank: means bank, with which the Institute may be in accounts;
3)    Cash:  includes legal tender coins, currency and bank notes, cheques payable on demand, bank drafts and paisa revenue stamps;
4)    Competent authority in relation to the exercise of any power means the General Council or the Executive Committee or any other authority of the Institute action within the powers conferred on them in the rules of the Institute.
NOTE: – The executive committee may delegate such of its powers for the conduct of the business of the Institute as it may deem fit, to the Chairman, to any Committee or the Director General/ Director or any other officers of the Institute.

5)    Controlling Officer means the Director General of the Institute.
6)    Disbursing Officer means the Director Administration.
7)    Director means, the Directors of the Institute.
8)    Year means the period commencing on the first day of April and terminating on the thirty first day of March of the following calendar year.
3.    1.1.Fund:-
All receipt of the Institute shall be paid into and all payments on account of the Institute shall be paid out of the fund of the Institute.
3.1.2.    The fund of the Institute shall comprise the following:-
a)    grants made by the Government of Punjab, the Government of India, or any State Government;
b)    donations and contributions from other sources;
c)    fees and charges levied by the Institute for services rendered by it;
d)    income from other sources;
e)    Income from Investment.
Grants received for Capital expenditure would constitute the Capital Fund of the Institute to which balance of annual income and expenditure accounts would be adjusted.
3.2.1. Bank Accounts: – The funds of the Institute shall be kept with the Bank
3.2.2. Remittance into the bank account(s) will be evidenced by pay-in-slip of bank concerned, showing acknowledgement of receipts of money by the bank concerned.
3.2.3 (a) No money shall be withdrawn from the bank account unless required from immediate disbursement, except by means of cheque or order signed by the Director or by an Officer/Officers nominated in this behalf. The cash balance shall be kept to minimum, Blank cheque books shall be obtained from banks and kept under lock and key.
 (b) Cheque will be signed by Disbursing Officer along-with another officer i.e. by two officers.
 (c) Cheque drawn shall be specially crossed ‘Account Payee’ and ‘Government A/C’ respectively.

3.3.1 Custody of Cash:-
Cash withdrawn from the bank account and receipts realized in cash would be kept in a strong chest having two locks. The keys of one Lock will remain with the disbursing officer and the key of second lock with the Cashier.
3.4.1 Record of transactions of Receipts & Payments:-
All receipts and payments shall be entered in the cash book which shall be maintained in Double Entry System. Each payment shall be supported by a voucher setting forth full details of the claim, complete address of the payee and his acknowledgement.
3.4.2. Cash Book, Receipt book and cheque books before being brought into use, will have their page counted and a certificate to that effect would be endorsed by the Disbursing Officer.
3.4.3 Every voucher must bear a pay order signed, by hand and in ink, and dated by the Disbursing Officer.
3.4.4 Petty payments of sums not exceeding Rs. 2000/- in cash shall be made from the imprest. The amount of imprest will be fixed according to needs under the orders of the Controlling Officer which shall not be more than Rs. 20,000 in any case the imprest will be fully recouped on or before the 31st March each year. Account of petty payments made during a month shall be included in the accounts of that month.
3.4.5. Entries in the cash book should be legible and indicate nature of each receipt and payment transaction as well as its classification. Overwriting of an entry once made in the Cash Book is strictly prohibited. If a mistake is discovered, it should be corrected by drawing the pen through the incorrect entry and inserting the correct one in red ink between the lines.
3.5.1. Verification:-
At the close of the day, the cash book should be checked by the Drawing & Dusburse Officer CP to see that:-
i)    all receipts collected on the previous working day have been deposited into the bank account acknowledgement of the bank exists;
ii)    no payment has been made which was not duly authorized by the Competent Authority and no receipt has been kept out of account.
iii)    each payment is supported by a voucher and acknowledgement of the payee;
iv)    all vouchers have been stamped ‘PAID’.
3.5.2. At the close of the each month, the cash balance in hand shall be verified simultaneously with the imprest cash balances and a certificate of court recorded in Cash Book by the DDO after the entries of the month.
3.5.3. The balance of postage stamps and postal stationery with the Despatch clerk would be verified by the Drawing & Disbursing officer at the close of the month.
4.1.1 Budget:-
Annual detailed budget estimates of the Institute for Receipts and Expenditure shall be prepared each year in the month of February for the next first year for the approval of the Executive committee. The item wise provisions made would be explained in a memorandum accompanying the estimates. The Budget estimates would then be considered and approved by the Executive committee before submission to the General Council which shall accord approval on or before 31st March each year to enable the Institute to incur expenditure in the next financial year as per provision made in the budget.

4.1.2. The annual budget estimate shall be supported by the following statements:-
1.    Estimate of Capital expenditure.
2.    Estimate of Provisions made for Recurring Expenditure.
Ordinarily, provisions should be made only for those items on which expenditure is likely to be incurred during the year. Revised Budget Estimates shall be prepared in October each year on the basis of Excesses & Surrenders Statement prepared by Account/Budget Sanction.                 
4.2.1 Re-appropriation:-
The Director General would be competent to re-appropriate funds from one head to another head of account (Minor Head) as per justified requirements.
4.3.1. Progress of Expenditure:-
Progress of expenditure as compared to budget provisions would be reported to the Executive Committee on quarterly basis.
4.4.1. Communication of sanction to expenditure:-
All letters or orders sanctioning expenditure must issue under the signatures of the Competent Authority which is authorized to sanction that expenditure. When such orders are issued in pursuance of a decision of the Executive Committee or the General Council, reference to the said decision be incorporated in the orders.
4.5.1. Sanction to Expenditure:-
The powers of Officers of the Institute for according sanctions to incur expenditure have been detailed in the Schedule of Delegation. There are thus three basic elements necessary before money can be spent on any subject or work:-
i.    There must be an act of sanction of an authority competent to sanction;
ii.   There must be an act of appropriation of funds for the purpose.
iii.  Observance of financial rules.
4.5.2 Liabilities incurred during the year should be adjusted in the accounts of that year.
Petty Purchases
4.6.1 Employees deputed to make petty purchases from the local market would be given advance not exceeding Rs.5,000/- at a time who would before asking for the advance from the Accounts Section, ensure that he has obtained the necessary sanction of the Competent Authoriy. As soon as purchases have been made and supplied received at the Institute, accounts of the advance would be submitted by the Officer concerned along with copy of the sanctions of competent authority and cash memos, obtained from the suppliers. The advance cannot be retained by an employee for a period of more than one month. The account received shall be checked in the Accounts Section and adjusted in accounts. The amount remaining unspent with the officer would be returned to the Accounts Section simultaneously with the submission of the account. All advance shall be closed on or before 31st March each year.
4.7. Miscellaneous Payments
4.7.1 Payment of Honorarium, etc. to Guest/ Visiting Faculty
Payment of honorarium to guest/ visiting faculty is to be made at the rates of honorarium approved by the Executive Committee. Any other facility extended to them by the Executive Committee of the Institute is to be regulated according to its decisions. Lodging arrangements would be made for guests and visitors coming from outstations in the following establishments in the order shown:-
 (a)    Institute rooms
(b)    State Government guest houses
 (c)    The Union Territory guest house.
(d)    Guest houses run by Public Sector Tourism undertakings.
(e)    Hotels
4.7.2. P.O.L & Repair to Vehicles:-
Petrol, Oil, and Lubricants purchase for staff car would be entered in the log book by the Driver giving particulars of the cash memo, given by the suppliers. Before such payments are adjusted, the entries in the Log Book would be endorsed and a check certificate recorded in the log book against the entry concerned by a responsible employee duly authorized by the Drawing & Disbursing Officer. Repairs to staff car or other vehicles of the institute would be entrusted to repair shops as far as is possible, after inviting competitive rates as per purchase rules. Particulars of repairs carried out from time to time would be entered in the repair register and attested by the Vehicle Incharge.
5.1.    Accounts & Audit:-
5.1.1. Maintenance of Accounts:
Accounts of the Institute would be kept according to the accepted principles of accounting in the Double Entry System.
5.1.2. Following books of accounts and records would be maintained:-
Books of accounts:-
i.    Cash Book).
ii.    Imprest Cash Book
iii.   Journal
iv.   Ledger
Books of Record:-
i.     Receipt Book
ii.    Cheque Book
iii.   Register of Cheque and Receipt Book
iv.   Salary Register
v.    Register of Recoveries made from employees
vi.   Property Register
vii.  Employee’s Security Deposit Register
viii. Despatch-cum-Stamp Register
ix.  Vehicle Log Book
x.   Vehicle Repair Register
xi.  Stock Register of Consumable Stores
xii.  Register of Advance
xiii. Stock Register of Stationery Articles
xiv. Stock Register of non-consumable store.  

Record of Transaction-Maintenance of:-
5.2.1. Cash: Cash transactions, as they occur, would be entered in the cash Book or the Petty Cash book, as the case may be. Non-cash transactions and adjustments would be entered in the              journal on the basis of journal vouchers. These transactions would be posted to ledger accounts daily and a trial balance would be extracted the close of each month.
5.2.2. Purchases: As soon as any purchase is made, entries would be made in the Asset register, Stock Register of consumable stores, Stock Register of non consumable store and the register of stationery articles, as the case may be.
5.3. Annual Accounts:-
The annual amounts of the financial year would comprise the following statements
1.    Receipts and payments
2.    Income and Expenditure Account.
3.    Balance Sheet
They would be authenticated by the Disbursing Officer.
5.4. The annual accounts of the Institute and the annual report of the activities of the Institute shall be presented to the Executive Committee in the month of May each year and after its approval these would be presented to the General Council for consideration in the month of July each year.
6.1.1.Audit: The accounts of the institute shall be audited annually by the auditors of Local Audit Department. All books of account, connected vouchers and other papers would be made available to the auditors.
6.1.2. The results of audit shall be communicated to the Executive Committee through the Director of the Institute. Director General shall consider the report and send his observation indicating action taken and / or proposed to the be taken to the Executive Committee.
7.1.1. All contracts and agreements for and on behalf of the Institute shall be signed by the Director General/Director (Administration) of the Institute as per delegation of powers in this regard.
8.1.1. Funds of the Institute may, with the approval of the Director General/Director (Administration) be placed in long term deposits with the Scheduled Bank/Banks.
8.1.2. A proper record of all such investments shall be maintained by the Institute.
9.1.1. Stores of the Institute shall comprise all articles and the material purchased or otherwise acquired for the use of the Institute and shall include:-
(a)    Furniture, fixture, equipments, library books, vehicles and cycles, etc; and
(b)    Consumable and non consumable stores and stationery articles and forms used in the officer.
9.2.1. Purchase:-
Purchase of stores is to be made in the/most economical manner to meet definite and immediate requirement of the institute as per the purchase policy of the Institute.
9.2.2. Purchase of stores are to be regulated according to the availability of funds as per approved budget and with the sanction of the Competent Authority by observing financial rules.
Receipt of Store:-
9.3.1. All material received should be examined, counted, measured, or weighed, as the case may be, when delivery is taken by the official incharge, he should also see that the quantities are correct and their quality good and confirms to the specifications given in  the purchase order. The Officer should record a certificate to that effect in the invoice received from the supplier. He would also certify that he has actually received the material and quality and quantity found in order and recorded them in the appropriate stores register.
9.3.2. At the time of making payments, it should be seen that the rates paid are not in excess of those entered in the contract or agreement made for the supply of stores and that suitable notes of payment are recorded against the purchase order to prevent double payment.
9.4.1. Issue of  Stores:-
When consumable stores, stationery and forms, etc. are issued from stores, it should be seen by the official in charge of the said stores that a requisition in proper form, duly signed by an officer in charge, is received and that stores are issued according to the scale fixed by the Director. A written acknowledgement should be obtained from the person to whom stores are ordered by the store incharge to be delievered. Entries of issues are to be made in the relevant stores register of such store to be supported by requisitions referred to above.
9.4.2. Though items of furniture and equipment, etc. would be issued to various sections according to written requisitions received from them, these items will not be struck off from the record, and only a note of such issues would be kept in the remarks column in order to show their distribution.
9.5.1. Custody and Accounts of Stores:-
The officer in charge of the stores of any kind should take special care for their safe custody, for keeping them in good and efficient condition and for protecting them from loss, damage, or deterioration. For securing this object, it is important that all quantities received in/or issued from stores are entered in the store accounts directly in accordance with these bye-laws and in the order of occurrence on the dates, the transactions take place so that it should be possible at any time to check the actual balance with the book balance.  
9.5.2. The inventory of stores of any category should show quantities as well as values.
9.5.3. When the officer in charge of stores is shifted or transferred, it should be ensured that stores in his charge are made over correctly to his successor and a proper receipt is taken from him.
For this purpose, a joint transfer report accompanied by the relieving employee’s receipt for the stores is submitted to the officer responsible for the work of the said Storekeeper. If the relieving employee fails to bring to notice within a week any deficiency or defect in stores taken over from his predecessor, he will be held responsible for the same both as to quantity and quality.
9.5.4. The Officer in charge should ensure that storekeeper attends to his duties properly, that stores are kept in such a manner that chances of wastage and pilferage are obviated as far as possible and that proper record are maintained of the movement of stores.
9.6.1. Physical Verification:
Physical verification of stores should be conducted at least once a year by a person in a responsible position in the Institute not connected with the store officer/store keeper. If necessary, such a physical verification can be entrusted by the Director to an officer/official who has the technical competence to do the job.
9.7.1. Sale and Disposal etc.
The competent authority of the Institute may sanction the sale or disposal of stores, which are reported to be surplus, absolute or unserviceable.
9.7.2. Depreciation shall be written off reducing value of various types of equipment, furniture, vehicles, buildings etc. at the rates as allowed in the Income Tax Act/Rules.
The depreciation so written off would be treated as expenditure of the year.
9.7.3. Each order declaring stores unserviceable or surplus should record the reasons for declaring them surplus or for condemning them and would indicate the mode of their disposal, e.g. whether by sale public auction or otherwise.
Losses, etc.:
10.1.1. Every employee of the Institute should realise fully and clearly that he will be held personally responsible for any loss sustained by the Institute through fraud or negligence on his part and that he will also be held personally responsible for any loss arising from fraud or negligence on the part of any other employee of the Institute to the extent to which it may be shown that he contributed to the loss by his own action or negligence.
10.1.2. All losses, however, shall be reported to the Executive Committee which may delegate powers to write off losses to its officers in cases where the following conditions are satisfied:-
i.    The loss does not disclose a defect of system, the amendment of which would require a reference to the Executive Committee.
ii.    It is not due to negligence on the part of any employee which might possibly call for disciplinary action requiring a reference to the Executive Committee for its consideration.
Legal Proceeding:
11.  The Director is authorised to take necessary steps to the institute and defend legal proceedings on behalf of the Institute and sign Powers of attorney and submit statements to Court of Law. He would report all such cases to the Executive Committee for its consideration.
Residual Provisions:-
12. Matters for, which no provision has been made in these bye-laws, would be regulated by the rules contained in the Financial Rules of the Punjab Government.

NOTE:    Department of Finance vide its memo no. ___          dated nil, as conveyed by the office of Principal Secretary, Sports & Youth Services, Punjab, vide memo no._______ dated 21.07.2016, has vetted the Financial Bye-Laws, which were sent to the Finance Department for vetting.