Govt okays accrual-based double entry accounting system in J&K municipal bodies
Jammu: The Jammu and Kashmir administration on Wednesday accorded sanction to adoption of the J&K Municipal Accounting and Budgeting Rules, 2020 to facilitate implementation of Accrual Based Double Entry Accounting System (ABDEAS) in Urban Local Bodies (ULBs).
The approval was given by the Administrative Council (AC) which met under the chairmanship of Lt Governor G C Murmu here, an official spokesman said.
He said the adoption of the manual by the municipal bodies would guide them in proper implementation of provisions of municipal laws, specifically related to accounts and audit.
It would also bring more transparency in maintaining accounts, enforcing discipline with defined timelines for completion of accounts, audit, filing of response to audit paras, along with preparation of budget and its execution, he said.
The new rules would also strengthen internal controls through segregation of duties, specific controls in handling and accounting of cash, security, stores and general maintenance by delineating roles and responsibilities for various accounting models.
Moreover, the spokesman said the manual would introduce a uniform chart of accounts for all municipal bodies and will provide guidelines for preparation of opening balance sheets and valuation of municipal properties.
It would also help in publishing the annual reports within completion of the financial year, he said adding the procedures enshrined in the manual would ensure incorporation of formats of database on finance prescribed by Comptroller and Auditor General for effective monitoring of ULBs.
This would also ensure provisioning against receivables based on the principles laid down by National Municipal Accounts Manual, the spokesman said.