Page 129 - Office Practice and Accounting 10

i.e. central and operating levels. Central level offices maintain the central level
accounting and operating level maintains operating level accounting. Central
level offices do not interfere in regular accounting work of operational level
offices but require regular submission of accounting reports and statements.
xi. Use of brackets: Another unique feature of new accounting system is use of
brackets, mainly in budget sheet, bank cash book to show the amount to be
credited and to be deducted, bracket is used.

Types of Government Accounting

According to the new accounting system, the accounting system of government offices
is divided into two levels on the basis of nature of its work. They are: (i) Central level
accounting (ii) Operating level accounting.

Central Level Accounting
Central level accounting includes the accounting system of ministries, departments,
commissions and constitutional bodies. Central level offices refer to those government
offices, which receive budget from the Ministry of Finance and release them to
operating level offices. The accounting of central level offices is concerned with
recording the budget received from the Ministry of Finance and the release made
to operating level offices. When the budget is released to concerned operating level
offices, it is treated as advance and recorded in advance account. Each and every
operating level office should submit the statement of monthly expenditure to get the
budget release for second month which is received on the basis of expenditure report.
Commonly used accounting records or forms in central level accounting are journal
voucher, ledger, subsidiary books, bank statement, statement of advance given to
operating level offices, etc. A central level may not have large number of transactions
that’s why very few numbers of forms are used.

Operating Level Accounting
District office, zonal office and regional office are known as operating level office
according to new accounting system. They receive budget from concerned central level
offices and make expenditures on the basis of prescribed budget heads. Operating level
accounting refers to that accounting system which is maintained at operating level
offices. They receive imprest fund (revolving fund) and budget from central level offices
and execute them in administrative, operating and development works. The operating
level offices make expenditure from that fund and at the end of every month statement
of expenditures and other reports should be prepared and submitted to central levels.
The equal amount of monthly expenditures would be reimbursed by the central levels
in terms of budget release. Operating level offices are responsible to the concerned
central level offices from which they receive budget release. Commonly used accounting
records or forms in operating level accounting are journal voucher, bank cash book,
budget sheet, subsidiary ledger, petty cash fund, statement of expenditures etc.

Office Practice and Accounting 10 123