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Book, Budget Sheet, etc. and preparation of the monthly report to submit to the central
level office. After the budget release is obtained from the central level office as advance,
through the Office of the Treasury and Comptroller, it is recorded under the operating
level accounting by incurring the expenditures under different heads of expenses.
In this way, an operating level office serves the functions like receiving budget as advance
under different heads, making expenditures as per the prescribed rules and creating
records of budget received and spent, forwarding monthly reports of expenditure to
clear the advance remaining in their names, getting accounting audited internally and
preparing budget estimate for the next year, etc. There are a number of forms and records,
which are to be maintained by an operating level office.
a. Goshwara Voucher, AGF No. 10
b. Bank Cash Book, AGF No. 5
c. Budget Sheet, AGF No. 8
d. Monthly Report of Revenue, AGF No. 9
e. Statement of Expenditure, AGF No. 13
f. Monthly Report of Unclear Advance, AGF No. 14
g. Bank Reconciliation statement, AGF No. 15

7. Differences between Central & Operating Level Accounting

S.N. Central Level Accounting Operating Level Accounting
1. Central level accounting is prepared by central Operating level accounting is prepared by the
level offices like ministries, departments operating level offices like regional, district
and constitutional bodies, which have the level and other local offices, which get budget
subordinating offices working under them. releases from the respective central level
offices.
2. It acts as a link and intermediary between the It has link only with its Central level offices
operating level offices and Ministry of Finance. and has no any concern with the Ministry of
Finance.
3. It records the budget releases in the advance It records the budget releases received from its
account of each of its operating level offices. central level offices and its expenditures as the
instruction of the central level office according
to the financial rules.
4. Central level accounting is the record of central Operating level accounting is just the
level office for its own operation and also, the accounting of the operating level offices and
accounts of the operating level offices. not of any other offices.
5. Central level accounting gets the accounts and Operating level accounting gets the accounts
financial statements internally and externally and statements internally audited and they are
audited by the Office of the Auditor General. submitted to the central level office.
6. Central level accounting uses small number of Operating level accounting uses comparatively
forms for accounting and reporting. a large number of forms for accounting and
reporting.
7. Central level accounting helps the Ministry of It does not directly help in the preparation of
Finance, Office of the Comptroller General to central accounts but it helps in the preparation
prepare central accounts. of central level accounting.

190 Aakar’s Office Practice and Accountancy - 10 Government Accounting System 191