Welcome to the Session

on

Core Financial Rules:

GFR,TR,SR

Presented by:
Md. Abdul Baten Fakir
Deputy Secretary & DPD(F&A)
DMRTDP(Line-6)
Session Overview

 How money comes in and goes out (Budget) ,

 Authority of the Financial Managers (Delegation of Financial
Power or authority) ,
 Recording of transactions of receipts and payments (Accounts)
 Cash Flow Management ( Treasury Management)
 Accountability to Stakeholders (Audit)
GFR- Introduction

 Executive orders of the Hon’ble President

 Describes financial powers of different authorities subordinate
to the Government
 Specified functions assigned by the President
 Conditions & Principles of Payment of money into or the
issue of money from the consolidated fund
 Consists of 15 chapters covering 303 rules, appendix and 25
forms
Rule Making Authority

 Parliament may by Law regulate the appointment and

conditions of service of the persons in the service of the
republic.

 President may make rules to regulate the appointment and

conditions of service of such persons until provision in
that behalf is made by or under any law (Art-133 of the
Bangladesh Constitution)
Recommendation for Fin. measures

 The Custody of the public moneys, their payment into and the
issue from the Consolidated Fund etc, shall be regulated by
Act of Parliament or by Rules by the President (Art-81 of the
Bangladesh constitution).

 All revenues received by the Government, all loans raised by

the Government and all moneys received by it in repayment of
any loan, shall form part of one fund to be known as the
Consolidated Fund. (Art-84)

 No money bill or any bill which involves expenditure from

public moneys, shall be introduced into parliament except on
the recommendation of the president (Art-82)
General Financial Rules-Overview

 Financial Management (Receipt, Payment and Accounting)

 Power of Sanction
 Budget, Grants and appropriation
 Establishment (DOB, S/Book, S/Statement)
 Supply and Services
 Grants-in-aid, Works & Stores
 Debt & Miscellaneous obligations of Govt.
 Loans and Advances
 Delegation of financial powers
 Public Procurement rules
 Government Accounts
Chapter -1 :Definitions

Appropriation- means the assignment to meet specified

expenditure of funds at the disposal of the assigning authority.
Non-recurring expenditure- means expenditure sanctioned
as a lump sum charge, whether the money be paid as a lump
sum or by instalments.
Principal Accounting Officer - means the Secretary or the
Secretary-in-charge of a Ministry or Division.
Public Accounts - means the Consolidated Fund and the
Public Accounts of the Republic as defined in Article 84 and 86
of the Constitution.
Re-appropriation - means the transfer of funds from one
unit of appropriation to another such unit.
Recurring Expenditure - means all expenditure, which is
not non-recurring.
Chapter-2 GENERAL SYSTEM OF FINANCIAL MANAGEMENT
AND CONTROL

Rule 4: Transactions must be brought to account without

delay.
Rule 5: Government payment and receipt must be in
accordance with the Treasury Rules.
Rule 7 : Moneys may not be removed from the Public
Accounts for investment or deposit elsewhere without the
consent of the Finance Division.
Rule 9: As a general rule no authority may incur any
expenditure or enter into any liability involving expenditure
from public funds until the expenditure has been sanctioned
by general or special orders of the Government or by an
authority to which power has been duly delegated in this
behalf and the expenditure has been provided for in the
authorised grants and appropriations for the year.
Standards of Financial
Propriety (Rule-10)
I. 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.

II. The expenditure should not be prima facie more than the
occasion
demands.

III. No authority should exercise its powers of sanctioning

expenditure
to pass an order which will be directly, or indirectly to its own
advantage.

IV. Public moneys should not be utilised for the benefit of a

particular
person or section of the community
Chapter 3: REVENUE AND RECEIPTS

Rule 28: It is the duty of the departmental

controlling officers to see that all sums due to
Government are regularly and promptly assessed,
realised and duly credited in the Public Accounts.

Rule 39: AUDIT OF RECEIPTS

Accounts Officer in pursuing the investigation, he
may call on that officer for all vouchers and other
documents that may be relevant to the
investigation.
Chapter 4 POWERS OF
SANCTION
Rule 40:The executive authorities of
expenditure rests on the President.
Rule 44 : Unless otherwise provided by any
special rule or order of Government, a higher
authority may exercise the powers delegated
to an authority subordinate to it.
Rule 56 : Unless otherwise indicated
specifically in the order conveying the
sanction, a sanction issued by a competent
authority has effect from the date of orders
conveying the sanction.
Chapter 5 BUDGET, GRANTS AND
APPROPRIATIONS

Rule 59: All authorities which are competent to

sanction revision of pay or the grant of
concessions to Government servants should
bear in mind that retrospective effect should
not be given to financial sanctions, except
in exceptional circumstances, without the
special approval of Government.
Rule 58: A sanction for any fresh charge which
has not been acted on for a year must be held
to have lapsed, unless it is specifically renewed.
Chapter 6: ESTABLISHMENT

Rule 125: If a Government servant is unable to

state his exact date of birth but can state the
year, or year and month of birth, the 1st July
or the 16th of the month, respectively, may
be treated as the date of his birth.
Rule 129: The service books of non-gazetted
employees to be verified by the head of the
office who should record in it a certificate in
the following form over his signature: “ service
verified up to (date) from (the record from
which the verification is made.)
Chapter 7:EXPENDITURE ON SUPPLIES & SERVICES AND
REPAIRS & MAINTENANCE

Rule 140: Permanent Advance

Permanent advances may be granted to officers who
may have to make payments before they can place
themselves in funds by drawing bills on the Accounts
Offices.
Note: The applications for permanent advances should
be accompanied by a statement showing expenditure
on supplies & services and repairs &
maintenance month by month for the preceding
twelve months.

As these advances involve the permanent retention of

money outside the government accounts, they must
not be larger than what is absolutely essential.
Chapter 8: Stores

Rule 153: Purchase Orders should not be split

up to avoid the necessity for obtaining
the sanction of higher authority required
with reference to the total amount of the
orders.

Rule 160: Separate accounts should be kept of-

(i) “Dead Stock” such as plant machinery,
furniture, equipment, fixture; and (ii) Other
stores
Chapter 9: Public works

See Public Procurement Act 2006

Public Procurement Rules
2008
Chapter 13:Loans and Advances

Rule 237: Provision should be made in the Budget for all

loans and advances which can be foreseen in advance.
Rule 243 : A loan bears interest for the day of advance,
but not for the day of repayment. Interest for any
shorter period than complete half-year should be
calculated as
(number of days x yearly rate of interest)/365
unless any other method of calculation is prescribed in
any particular case or class of cases.
Rule 245. A competent authority may remit or write off
any loans or advances owing to their irrecoverability or
otherwise. (See para. 46).
LOANS AND ADVANCES TO
GOVERNMENT SERVANTS

Rule 250:The Finance Division, at the beginning of the

financial year, circulates allocation letters informing
administrative Ministries/Divisions their respective
budget provisions for loans and advances to
Government servants under their control.

Rule 252: Government officers belonging to cadre

services shall draw advances from the allocations of
Ministries/Divisions where they are posted.

Rule 253. Government servants on deputation may

draw advances from the Ministries/Organizations where
they are posted;
Chapter 14: Miscellaneous

Rule 266: Security Deposit: Whenever a private

person or a firm contracts with Government to supply
stores or execute a work, he or it should, unless exempted
by competent authority, be required to give security for
the due fulfillment of the contract and suitable
provisions regarding the security should be
incorporated in the agreement. No interest is
payable thereon.

Rule 281:Insurance The normal policy of Government is

not to insure its properties and no expenditure should be
incurred without the prior consent of the Finance Division
on the insurance of any Government property.
Chapter 15: GOVERNMENT
ACCOUNTS

Rule 286: The form in which and the general

principles and methods according to which the
accounts of Government should be kept have been
prescribed by the Auditor General with the approval
of the President and the main directions in respect
thereof are contained in Volume I of the Account
Code.

Rule 287: CLASSIFICATION IN GOVERNMENT

ACCOUNTS.
Non-Dev. and Dev. budget
 Non-Development Budget-
- Revenue Expenditure
- Capital Expenditure
- Loans & Advance Expenditure
- Loan repayment

 Development Budget-

- Revenue Expenditure
- Capital Expenditure
Treasury Rules &
Subsidiary Rules
 Rules and procedures to maintain the
Govt. money, deposit into consolidated
fund or public accounts of the Republic
and also withdrawal from them

 TR describes principal 41rules in 12

sections

 SR are more detail 441rules comprise 11

chapters made under TR
Coverage of Treasury Rules

 Method of payment of money into or the

issue of money from the consolidated
fund
 Treasury Rules (1-41)
 Subsidiary Rules (SR 1-441)
 Executive orders
 Currency and Bank note
 Annexure (1-13)
 Forms of bills & Registers.
Treasury Rules & Subsidiary
Rules

1. Handling of Cash and Cash Book (SR22-

23)
2. Arrear Claims (SR-61)
3.Bill Preparation Procedure (SR-62)
4. DDO (SR-66)
5. Cross Cheque (SR-80)
6. Validity of Cheque (SR-85)
7. Personal Claims (SR-111-137)
8. Supplies & Services (SR161-193)
9. Service Stamps (SR-194)
Treasury Rules & Subsidiary
Rules
10. Pension payment (SR195-229)
11. Constructn. & works expendtre. (SR
236-250)
12. Grants-in-aid (SR 254-258)
13. Departmental Payment (SR 288-290)
14. Public Debt (SR 311-317)
15. Deposits (revenue, Civil & Criminal,
Contractor’s deposit etc.) (SR 329-363)
16. Govt. Loans & Advance (SR 364-372)
Important Treasury Rules

 Service Pension means a pension payable to or in

respect of a person in consideration of his past
employment under the Govt and includes a gratuity
so payable. Political/Literary pension means a
pension, not being a service pension granted to or in
respect of a person on political consideration or in
consideration of distinguished or meritorious services
or on compassionate grounds (TR-2(p and 2(q)

 All moneys received by or tendered to Govt servants on

account of the revenues of the Govt and all moneys received
for deposit in the custody of Govt shall without undue delay be
paid in full into the Bank and shall be included in the Govt
Account. (TR-7)
Important Treasury Rules

 Depart’al receipts can be used by court, R&H, PWD,

PHE, Forests, PT&T, Union Parishad (TR-7)

 The Secretary to the President and the Principal

Secretary to the Prime Minister may open an account
with a Bank with the permission of the President and
the Prime Minister respectively. (TR-9(2))

 So much of the grant of the three Chiefs of Staff as

may be drawn in advance under the Departmental
regulations may be kept in any Bank in their
respective official title. (TR-9(3))
Important Treasury Rules
 The Leave salary of a gazetted Govt Servant who
draws his Leave salary in Bangladesh may be paid
in any Accounts office of the country. The Leave
salary of a non-gazetted Govt servant may be paid
in that Accounts office only in which his pay could
be drawn if he were on duty (TR-20)
 Pensions payable in Bangladesh may be paid in any
Accounts office in Bangladesh (TR-21)

 First Claim of a Govt Servant other than a person

newly appointed to govt service shall not be paid
unless it is supported by LPC (TR-23)
Handling of Cash and Cash
Book
 Moneys to be tendered as dues of the
Govt or for deposit in the custody of the
Govt shall not unnecessarily pass
through the hands of a departmental
officer. Direct payment into the Bank by
the person who tenders such money
shall be insisted on, and direct payment
arranged whenever this is practicable.
(SR-22)
Handling of Cash and Cash
Book
 The flowing rules shall be observed by all Govt
officers who are required to receive and handle
cash:
a. Every officer receiving money on behalf of the
Govt should maintain a cash book in T.R Form No 3
b. All monetary transactions should be entered in the
Cash Book as soon as they occur and attested by
the head of the office in token of Check
c. The cash book should be closed and balanced each
day and completely checked
d. At the end of each month, the head of the office
should verify the cash balance in cash book and
record a signed and dated certificate to that effect
(SR- 23)
Grants-in-aid

 Grants-in-aid is sanctioned to educational

institutions, Local authorities,
autonomous bodies, Corporations, Co-
operative Societies (GFR-206)
 Grants-in-aid is disbursed in 4
installments
 Ministers/MPs have powers of sanctioning
discretionary fund
 Grants-in-aid sanctioned by Min/Div shall
not be paid from the treasury without the
authority of concerned CAO. (SR-254)
Cheque and its validity
 Chequed drawn in settlement of Govt dues shall
always be crossed Account payee only (SR-80)

 Every cheque in favor of a Government Officer

must be made payable to order only (SR-81)

 Cheqques shall be payable at any time within

three months after the month of issue; thus a
cheque bearing date any time in January is
payable at any time up to 30 April (SR-85)
Loans & Advance
 Loans and advance is given to:
-Govt servants (HB, MC, Computer Loan etc.)
- Autonomous bodies
- Corporations
- Local Authorities (City Corporations,
Pourosova, Union parishod) (GFR-234)
- Sanctioned loan/advance shall not be paid
without the order of CGA/CAO (SR-365)
Amount of Loans and
advance
 HB Advance (maximum 120000 taka)
 Motor Car Advance (Max-60000 taka)
 Computer Advance (Max-50000 taka)
 Motor Cycle Advance (Max-35000 taka)
 Bi-Cycle Advance
Interest Calculation

 Interest = Prin. Amount X RI X (no of ins+1)

2 X 12 X 100
 Principle amount= Max. 120000 for HB Adv.

 RI=Rate of Interest (10.5%)

 No. of installment = Max 120 for HB Adv. (GFR-

243)
Claim and Authority for
Payment
 Bill is a claim for payment against the Government.
Save as otherwise specially provided in these rules,
money may not be withdrawn from the Govt
Account except by presentation of bills.
 Unless the Finance Minister, after consultation with
the Controller General of Accounts, Otherwise
directs in any case, moneys may not be withdrawn
from the Government Account without the written
permission of the Accounts Officer authorized in
this behalf by the Controller General of Accounts.
(TR-13)

 An Accounts Officer Shall not permit withdrawal for

any purpose unless the claim is presented by such
person and in such form i.e in bill form (TR-16)
Different Types of Claims
 Personal Claims:
- Pay and allowances
- Traveling expenses
- Pension and Gratuities
 Other Claims:
- Supplies and services
- Repair and maintenance
- Grants-in-aid
- Procurement of goods, works and services
- Land acquisition
- CD VAT etc
Pay bill and its schedule

 Pay bill in T.R Form No. 13/15

 Schedule for deduction of Benevolent
Fund and Group Insurance
 Schedule for deduction of GPF
 Schedule for deduction of Loans/advance
 Schedule for deduction of House rent,
water, sewerage and municipal tax
 Schedule for deduction of Gas bill
TA bill and its attachments

 TA bill form in T.R Form No 14

 Signature and Certificate by the
officer/DDO
 Tour order by the competent authority
 Tour Diary and countersigning
 Budget provision in budget column
 Head of account (3-4331-0000-4801)
Bill for supplies and
services
 Purchase, supplies and services bill in T.R-21
 Code of the purchasing department
 Economic code and statement of supplied
goods
 Total Claim
 Signature of DDO and Countersignature
 Budget provision in budget column
 Deduction of IT, VAT etc
 Schedule for Deduction of IT,VAT etc
 Sanction order
General Rules for Bill
Preparation
 Bill form printed in bangla to be used
 All bills to be filled up by ink and signed
 If amount of bill is corrected in figure and
word, met to be attested by signature
 Classification chart (13 digit) to be recorded
 Exp. of two or more min/div/dept not to be
incorporated in one bill
 Sanction order to be mentions in the bill

Deductions to be maid as per rules
Subsidiary Rules

 Forms and preparation of bills (SR 114)

 TA advance (SR 145)
 Permanent advance (SR 165)
 Responsibility of DDO (SR 172)
 Responsibility of controlling officer (SR
173)
 Pension payment Order (SR 196)
TR Forms

 TR Form No- 3: Cash book

 TR From No- 4: Bill register
 TR From No- 6: Chalan form
 TR From No- 13: Pay bill form- Gazetted officer
 TR From No- 14: TA bill form- Gazetted officer
 TR From No- 15: Pay bill form- Establishment
 TR From No- 19: TA bill form- Non-Gazetted
Staff
 TR From No- 21: Purchase, Supplies and
Services bills
Maintenance of Cash Book (SR23)

 Every officer receiving money on behalf of Government

should maintain a cash book in TR Form No -3
 All money transactions should be entered in the cash
book as soon as they occur, and attested by the head
of the office in token of check
 The cash book should be closed and balanced each
day completely checked
 At the end of each month, the head of the office should
verify the cash balance in cash book and record a
signed and dated certificate to that effect.
 Reconcile with bank
 Erasure or overwriting is strictly prohibited
GENERAL INSTRUCTIONS REGARDING PREPARATION OF BILL

45

• The spaces left blank either in the money column or in the

column for particulars of the bill should invariably be covered
by oblique lines.
• A note to the effect that the amount of the bill is below a
specified amount expressed in whole Taka should invariably
be recorded on the body of the bill in red ink. The amount so
specified should be a sum slightly in excess of the total
amount of the bill.
(S.R. 62)
TIMELY SETTLEMENT OF CLAIMS
46

 Bill should be prepared in correct form.

 Must fulfill all the pre-condition for preparing bill.
 Must be free from all sorts of errors or omissions.
 Must be submitted within due time.
 Must have sufficient budget allocation.
 Authority of sanctioning expenditure is appropriate.
 Accounts classification is correct etc.
TR Forms

 TR Form No- 3: Cash book

 TR From No- 4: Bill register
 TR From No- 5: Receipt form-General
 TR From No- 5A: Receipt form (PW/R&H/PHED) C. Book
 TR From No- 5A: Receipt form (PW/R&H/PHED)NC.Book
 TR From No- 6: Chalan form
 TR From No- 13: Pay bill form- Gazetted officer
 TR From No- 14: TA bill form- Gazetted officer
 TR From No- 15: Pay bill form- Establishment
 TR From No- 19: TA bill form- Non-Gazetted Staff
 TR From No- 21: Purchase, Supplies and Services bills
Maintenance of Cash Book
(SR23)
 Every officer receiving money on behalf of
Government should maintain a cash book in TR
Form No -3
 All money transactions should be entered in the
cash book as soon as they occur, and attested by
the head of the office in token of check
 The cash book should be closed and balanced
each day completely checked
 At the end of each month, the head of the office
should verify the cash balance in cash book and
record a signed and dated certificate to that effect.
 Reconcile with bank
 Erasure or overwriting is strictly prohibited
Some important SR
 Duplicates and copies of Bills,etc.  SR 68
 Custody of the cheque book  SR 77
 Cheque payable period  SR85
 Cancel a cheque  SR86
 Deductions from Bills  SR115
 House Rent Deductions  SR116
 Issuing of Last pay certificate  SR123
 Payment on quitting the service  SR124
 Place of payment-payable at the  SR127
accounts office  SR128
 Place of payment-payable at the  SR153
headquarters/place of new post
 SR172
 Absentee Statement
 SR 173
 Responsibility of Drawing Officer
 Responsibility of Controlling Officer
Questions &
Answers
Thank you All