TN TREASURY

CODE
Team Synapse
CANCELLED CHEQUE
A cheque that hasn't been used or paid within 3 months from the
date of issue.
After this period, it is considered invalid and is cancelled by the
person who issued it (the Drawing Officer).
The Drawing Officer makes a note that it’s cancelled and destroys
the cheque if he still has it.
If the cheque is lost or not available, the Drawing Officer informs
the Treasury Officer to stop the payment.
The Treasury Officer then sends an official certificate confirming
the cheque will not be paid.
ENDORSED BILLS
If a government servant pays a bill using a
cheque, he must write the cheque in the name of
the person who is actually supposed to receive
the money (i.e., the bill drawer), and must not
ignore any endorsement on the bill.
LOST CHEQUES
If a cheque is lost, the drawing officer must:
Inform the bank immediately to stop payment.
The bank will check if the cheque was already
paid.
If not paid, they will take steps to stop payment
and give the officer a certificate.
LOCAL FUND CHEQUES
Money from local funds (like Panchayat or
Municipality) can only be withdrawn if the
cheque is signed by an authorized officer
(e.g., Executive Officer).
Banks will not pay the cheque unless the
fund has enough balance to cover it.
TIME-EXPIRED CHEQUES
If a cheque is not used within 3 months, it
becomes invalid.
The drawing officer must destroy the old
cheque and can issue a new one if needed.
He must write the details of both cheques
(old and new) in the records (counterfoil)
for tracking.
LAST PAY CERTIFICATE (LPC)
Issued by Drawing officer, when an employee is
transferred.
It indicates the details of the pay, allowances drawn
(Prior to transfer)
It also contains Recoveries to be collected, Amount due
to be paid, IT Recovery, CTD Passbook, CL Availed (in the
new station).
Without LPC, payment cannot be made to the employee.
LIFE CERTIFICATE
it is to ensure that the pension is not paid beyond the
date of death.
RELIEF PAYMENTS IN EMERGENCIES
(NATURAL CALAMITIES)
In urgent situations like fires, floods, or cyclones, certain
government authorities are allowed to order immediate
payments for relief without following usual treasury rules.
These payments are not for pensions, but strictly for
disaster-related help.
Conditions:
A written order must be given.
The Treasury Officer must report the payment to the
Accountant-General immediately.
District Collectors can give up to ₹10 lakhs for crop
damage over 50%—but only after joint inspection.
These payments should not be used for personal
claims but only during emergencies.
Once the emergency ends, further claims will be
allowed.
STRONG ROOM
It is a high-security room used to store cash,
valuables, or sensitive documents, used in
Treasuries
Banks
Government offices
a) Certification & Structure
A room can be used as a strong room only if certified
by an Executive Engineer of the Public Works
Department.
The engineer must inspect walls to ensure they are
secure and not easily accessible from outside.
No bags or boxes should be placed too close to walls
or specific areas unless permitted.
(b) Iron Safe
Any iron safe must be built into the room structure
(masonry).
The safe’s lid should be at ground level.
All locks and bolts must be well-oiled and dust-free.
(c) Annual Inspection
Every strong room must be inspected yearly by:
An Executive Engineer, or
An Assistant Executive Engineer appointed for this
task.
The Treasury Officer must get a safety certificate
after each inspection.
(d) Police Instructions
The Superintendent of Police can order:
Positioning of sentries (Guards),
Security improvements (e.g., fastenings, lighting).
While building security is the Executive Engineer’s
duty, cash chest safety is the Treasury Officer’s
responsibility.
(e) Display of Orders
Two things must be displayed:
Latest safety certificate (from clause c),
Police order (from clause d).
(f) Doors & Windows
It must remain locked, except when moving valuables.
Windows/shutters may be opened during office hours for
air/light only if valuables are securely locked inside.
(g) Locks
Only specific high-security padlocks should be used:
Dindigul or Sparling patent locks,
Godrej padlocks (also allowed),
It should be used as per government orders.
 50

40

WAYS AND MEANS ADVANCE

30

20

10

It is a temporary loan taken by the State

Item 1 Item 2 Item 3 Item 4 Item 5

Government from the Reserve Bank of India (RBI) to

help the government manage short-term financial
difficulties when there is a shortage of funds in the
treasury.
The loan is issued based on a promissory note
signed on behalf of the Governor.
It must be repaid with interest, as agreed upon.
 50

40

PERMANENT ADVANCE
30

20

10

It is a fixed amount of money given in advance to the

Item 1 Item 2 Item 3 Item 4 Item 5

head of an office to handle small or urgent expenses

without waiting for formal approval each time.
Used for unforeseen or petty expenses.
The amount must be replenished when it runs low
or if the officer changes.
Sanctioned by the Head of the Department (for
subordinates) or by the Government (for
department heads).
PAY SLIP
A Pay Slip is a document issued by the Accountant
General or Pay and Accounts Officer that shows:
The rate of pay and allowances of an officer.
Needed when an officer is transferred or there is a
change in pay/allowances.
Helps ensure correct salary payments at the new
location.
CHALLANS
A Challan is proof of money remitted to the Government account.
It is a remittance slip submitted at the Treasury during payment.
Key Details Mentioned in a Challan:
- Nature of Payment
- Amount Paid
- Name of the Person (government servant or other)
- Head of Account to be credited
- Allocation (if the amount is to be divided between departments)
NON-PAYMENT CERTIFICATE
Issued by the Treasury Officer when a prepared bill is lost before it
reaches the treasury. This certificate confirms that no payment was
made against that bill.

NON-DRAWAL CERTIFICATE
Issued by the previous office to confirm that a claim (like arrears)
has not been drawn or paid earlier. Needed when an arrear is
claimed in a new office.
MEASUREMENT BOOK
Measurement Book is the official record of work or supplies
provided by a contractor.
All measurements of completed work must be entered here.
No blank lines or erasures are allowed.
Corrections must be signed.
Payments to contractors are made based on this book.
After payment, a diagonal red line is drawn to mark
completion.
This book is a legal document, so it must be maintained
carefully.
UNDISBURSED PAY
If an employee's salary remains unpaid on the day of payment, it
is called "Undisbursed Pay".
These unpaid amounts are recorded in a special register.
When the employee resumes duty, the pending payment is
given to them.
If the payment is not claimed within 3 months, it is sent back
to the Treasury.
Now, salaries are directly credited to employees' bank
accounts via ECS.
So, undisbursed pay registers are no longer necessary in
most cases.
 PENSION PAYMENT ORDER (PPO)
A Pension Payment Order is an official letter of authority
issued by the Accountant General.
It authorizes the payment of pension and terminal benefits to
a retired government employee.
Two parts:
Disburser’s Half – kept at the Treasury.
Pensioner’s Half – given to the retiree after verifying
identity.
PPO includes details like:
DCRG (Death-cum-Retirement Gratuity)
Commutation value
Family Pension
Enhanced Family Pension
BANKING TREASURY
Conducts transactions through Reserve Bank of India or State Bank
of India

NON-BANKING TREASURY EMERGENCY

FUND
Handles transactions internally using its own staff,
without involving banks.
FLOATING DEBT
Floating Debt refers to the temporary loans raised by
the Government to manage short-term financial
needs. It includes
Treasury Bill Loans
Short-term borrowings by selling treasury bills.
Ways and Means Advances - Temporary loans given
by the RBI (Reserve Bank of India) to the SBI (State
Bank of India) to help the Government meet
financial gaps during the year.
TNTC 70 REGISTER
It is a record book used to enter all bills submitted to the Treasury
Date of bill presentation
Token Number
Date of encashment
Prevent Fraud
Each bill must be signed by the Drawing Officer, to identify any
fraudulent claims.
Accountability
Ensures that the money drawn is actually used and accounted for.
Reconciliation
Helps in preparing expenditure statements and reconciling
departmental figures with the Treasury and Accountant General.
DOUBTFUL CLAIMS
If a claim appears doubtful, the Treasury Officer must not pass it.
He must not follow directions from the Collector in such cases.
Referral to Higher Authority:
The case should be referred to the Director of Treasuries and Accounts.
The Director may, after proper examination, authorize payment only if
satisfied with the claim's validity.
Reporting to A.G.:
If the Director authorizes the payment of a doubtful claim, the Treasury
Officer must report the matter to the Accountant General (A.G.)
immediately.
The Treasury Officer may permit withdrawal for the
following purposes:
(a) For the sums due to the Drawing Officer.
(b) To provide money to the Drawing Officer to meet future
payments of other Government servants or private parties.
(c) To enable the Drawing Officer to supply funds to another
Government servant to meet appropriate claims.
(d) To pay Banks sufficient money for which Government has
to legally pay.
(e) To pay sums on account of Grants-in-aid contributions
(f) To pay sums on account of Loans and Advances.
DRAWING OFFICER’S RESPONSIBILITIES
Authorized Withdrawals Only
Should withdraw money only for purposes authorized by the
Government, and after consulting the Accountant General.
Accountability
Responsible for the funds until proper accounts are
submitted to the Accountant General’s satisfaction.
Proper Payment
Must ensure payments are made only to the rightful
recipients.
If identity is doubtful, the matter must be decided by the
Government.
TREASURY OFFICER'S RESPONSIBILITIES
If informed by the Accountant General or Director
of Local Fund about incorrect withdrawal, the
Treasury Officer must recover the amount
immediately, without delay.
He must not enter into any correspondence or
respond to requests related to the matter.
HOW TO ACCOUNT FOR REVENUE
COLLECTED FROM ANOTHER DISTRICT
If District A collects revenue belonging to District B, the money must
be:nCredited to the Treasury account of District B, Under the correct
head of account.
Inform the concerned officer of District B about this transaction.
In financial reports - That revenue must be excluded from District A’s
demand and collection figures.
And it should be added to District B’s reports.
Add footnotes in both districts’ statements explaining: (How much was
collected/ Which district it belongs to /Why the correction was made).
DEPARTMENTAL RECEIPTS AUTHORIZED FOR DEPARTMENTAL
EXPENDITURE
Commissioner Fees (Civil Courts) Fees for copying maps, plans, geological trees,

Subsistence allowance (Jail Authorities) Money order commission and conveyance charges

Money received by Sheriff of Chennai

Court receipts

Fees for copies of maps, plans, or records

Process fees
 Wants

INVESTING MONEY
10%

Savings
10%
WITHDRAWN FROM THE
30%

30%
GOVERNMENT ACCOUNT
Invested in Government securities, 60%
or
Deposited in a fixed deposit with: TN Needs
60%
State Co-operative Bank / Central
Co-operative Bank (approved by the
Registrar of Co-operative Societies)
DOCUMENTS TO BE ATTACHED TO THE
PAY BILLS.
1.Schedules in support of deduction made.
2.Certificate for allowances claimed.
3.Enfacement slip
4.Increment certificate when increment is
sanctioned
5.L.P.C. wherever an employee joins an office on
transfer.
6.T.N.T.C. 100.
PREPARING A BILL
Use the prescribed form.
Bills should be written in English. If in Tamil, an English summary with
payee name, claim amount, and reason must be added.
Printed forms should be used as much as possible.
Corrections should be avoided, and if any, must be attested.
All entries must be signed only by the Drawing Officer, not by clerks or
assistants.
A clerk cannot sign the bill, even if he signs letters for the head of office.
The head of office may authorize a gazetted officer to sign the bill if
needed.
Every bill should include an enfacement slip, which is returned after
payment with voucher number and date noted.
Common Deductions Include:
G.P.F. (General Provident Fund) Subscription
P.L.I. (Postal Life Insurance) Premium
Amounts due to Co-operative Societies
Refund of Advances
House Rent
Income Tax
TREASURY CHECKS FOR MONTHLY
ESTABLISHMENT SALARY BILLS
Ensure claims don’t exceed sanctioned posts.
No claims made under expired sanctions.
Check that number of employees doesn’t exceed sanctioned
strength.
Confirm valid orders for any increased pay or allowances.
All claims must be backed by proper government orders.
PERSONS NOT IN GOVERNMENT SERVICE
Bills for services/supplies must be countersigned by a superior officer.
The head of office should not present the bill—instead, it should be
endorsed to the party, who will present it directly.
If the Treasury Officer has doubts, he should ask the Drawing Officer to
consult the Accountant General.
In non-banking treasuries, the Sub-Treasury Officer must:
- Verify the validity of the claim
- Ensure payment goes to the endorsed person only, not to a bank or
messenger.
- For contractor bills, the Treasury Officer must:
- Confirm receipt acknowledgment by the contractor/supplier.
- Require a separate endorsement if the cheque is made payable to a
bank.
PRIVATE BUILDING OCCUPIED BY GOVT OFFICE
Non-Availability Certificate from PWD- Private building can be occupied
only if PWD certifies in writing that no government building is available.
Proposal Submission for Rent Fixation
Proposal is sent to the Executive Engineer of PWD to fix reasonable rent.
The Assistant Engineer inspects the building, considers:
- Market value
- Installations
- Parking space
- Building capacity and cost
Then, a reasonable rent certificate is issued.
Sanctioning Authority
Head of Department can sanction rent up to ₹12,500/month.
Secretary to Government can sanction rent up to ₹15,000/month.
Alternate Rent Fixation (if needed)
If rent fixed by PWD is not accepted, Head of Department can determine rent
by comparing with other nearby govt office rents.

Submission of Rent Bill to Treasury

After sanction, the occupying department submits the rent bill to the
Treasury in contingent bill form.
Must attach:
- PWD’s Non-availability Certificate
- PWD’s Reasonable Rent Certificate
- Owner’s Consent Letter
- Sanction Order
REFUND OF LAPSED DEPOSITS
1.Criminal Court Deposits
Can be refunded without Accountant General's sanction.
Treasury Officer must verify:
The deposit was received and credited to government.
It has not been repaid.
Identity and claim title are certified by the officer signing the refund
application.
2. Time Limit for Refunds
Deposits must be claimed within 3 years of lapse (per Limitation Act, 1963).
If not, they are considered time-barred.
Time-barred claims can be paid only if:
Claimed within 6 years from date of lapse.
Have special sanction from Head of Department.
Go through pre-audit by Accountant General.
 3. Other Deposits (Revenue, Raffle, Works Deposits)
Same rules as above apply.
Time-barred claims need:
Special sanction + AG pre-audit.
Verification by Treasury Officer that the deposit was
received, credited, and not already paid.

4. Payment Process
Treasury Officer sends bills to Accountant General.
AG gives pass order.
Bills must be paid within 3 months from AG authorization.
If not, bills require re-validation by AG.
**** No claim is valid after 6 years of lapse
TOKEN ISSUED FOR A BILL IS LOST
Report Loss using Treasury Code Form No. 104D, mentioning:
Token number, date, and amount of bill.
Inform Bank (for banking treasuries) immediately to prevent
misuse.
Cost of Token (₹75) is charged to the concerned head of
account.
If token is lost after surrendering in sub-treasury:
Recover cost from the person responsible.
If not possible, refer to Director of Treasuries and Accounts
for write-off.
MEMORANDUM OF DEDUCTION
It is a notice issued by the Treasury Officer to the Drawing
Officer about:
Any deductions made from a bill submitted.
Format: Bi-lingual (English & Tamil).
Sent via: Messenger who submitted the bill.
SAFE CUSTODY IN A TREASURY
1.Sealed boxes with jewellery/valuables from court cases.
2.Sealed packets of duplicate keys and padlocks of RBI
collecting depots.
3.Duplicate keys and cages of cash chests of government
institutions and co-operative/local bodies.
4.Sealed cash chests and valuables from private banks (as per
Collector’s orders).
5.Securities submitted by government departments.
6.Forest settlement records.
7.Confiscated arms and ammunition.
What is Your Current Financial Situation?
THANK YOU
Team SYNAPSE !