AP GO Ms No.254: DDO Payments Must Be Completed Within 15 Days
AP GO Ms No.254: DDO Payments Must Be Completed Within 15 Days
The Government of Andhra Pradesh issued G.O.Ms.No.254, Finance (TFR.II) Department, dated 17 March 2004, introducing an important amendment concerning amounts drawn by Drawing and Disbursing Officers (DDOs).
The Government Order directs DDOs to complete payments within 15 days from the date of drawal. If the drawn amount cannot be paid within that period, it must be remitted back to the Treasury under the relevant head of account.
This order was issued to prevent public money from remaining undisbursed in DDO bank accounts for long periods and to promote transparency, accountability and proper financial management.
G.O.Ms.No.254 – Important Details
- Government: Government of Andhra Pradesh
- Department: Finance (TFR.II) Department
- GO Number: G.O.Ms.No.254
- Date of Issue: 17 March 2004
- Subject: Employee payments through banks – amendment
- Main time limit: 15 days from the date of drawal
- Action after 15 days: Remit the undisbursed amount to the Treasury
- Relevant account: The head of account from which the amount was drawn
Background of the Government Order
The Government had earlier issued G.O.Ms.No.90, Finance (TFR) Department, dated 31 January 2002, relating to the payment of salaries and other employee payments through banks.
The banking scheme was intended to provide employees with greater transparency, flexibility and access to modern banking facilities. DDOs were instructed to open a zero-balance current account in a government bank to facilitate the crediting of salaries and non-government deductions.
Later, G.O.Ms.No.508, Finance (TFR) Department, dated 10 April 2002, provided instructions regarding employees who had not yet opted to open individual bank accounts under the scheme. Their salaries and other payments could be credited to the DDO’s current account and paid after encashment of the DDO cheque.
However, the Government observed that certain amounts were remaining undisbursed in DDO accounts for long periods.
Why Was G.O.Ms.No.254 Issued?
Money drawn from the Treasury is intended for a specific approved purpose. It should not remain unnecessarily in a DDO bank account after drawal.
Prolonged retention of undisbursed amounts may result in:
- Public funds being unnecessarily locked in bank accounts
- Difficulty in reconciliation of government accounts
- Weak financial control
- Delays in payments to eligible persons
- Increased risk of misuse or misappropriation
- Audit objections and administrative complications
To address these concerns, the Government introduced a definite time limit for making payments or returning the amount to the Treasury.
What Is the Main Rule Under G.O.Ms.No.254?
The amendment added the following requirement to paragraph 3 of G.O.Ms.No.90:
“The DDOs shall make all the payments for which the amounts are drawn within 15 days from the date of drawal or remit the same to the treasury to the head of account under which the amounts are drawn.”
Therefore, every DDO must follow one of these two courses of action:
- Make the intended payment within 15 days from the date of drawal; or
- Remit the unpaid amount to the Treasury under the same relevant head of account.
The 15-day period is counted from the date on which the amount was drawn, not from a later date selected for convenience.
Responsibilities of Drawing and Disbursing Officers
DDOs play an important role in maintaining government financial discipline. After drawing an amount, the DDO should monitor its payment status until the transaction is completed.
A practical office-level procedure may include:
- Recording the date and amount of every drawal
- Mentioning the relevant head of account
- Identifying the employees or beneficiaries concerned
- Completing the payment within the prescribed period
- Recording unpaid or failed transactions
- Remitting undisbursed amounts to the Treasury
- Preserving payment and remittance records for audit
- Reconciling the bank account and office cash records regularly
This checklist is provided as an administrative aid. Offices must also follow the latest Treasury, Finance Department and departmental instructions applicable to them.
Importance for Educational Offices and Schools
Copies of G.O.Ms.No.254 were marked to several authorities, including:
- District Collectors
- Heads of Departments
- District Treasury Officers
- Chief Executive Officers of Zilla Parishads
- District Educational Officers
- Municipal authorities
- Universities and other government institutions
Therefore, this order is particularly useful for educational administrators, school DDOs, headmasters, departmental officers and staff dealing with government bills and employee payments.
A school or educational office drawing funds should ensure that the amount is used only for the approved purpose and within the permitted period. Any undisbursed balance should be handled according to Treasury rules instead of being retained without proper authority.
Benefits of the 15-Day Payment Rule
The instructions in G.O.Ms.No.254 strengthen government financial administration in several ways.
Timely payments
Employees and other eligible beneficiaries receive payments without unnecessary delay.
Better transparency
The movement of government funds can be clearly traced from drawal to final payment or remittance.
Prevention of misuse
Amounts cannot be retained indefinitely in DDO accounts, reducing the possibility of misuse or misappropriation.
Accurate government accounts
Timely remittance of unpaid balances helps the Treasury maintain accurate accounts under the correct head of account.
Improved audit compliance
Proper records of drawal, payment and remittance can help offices respond effectively to audit verification.
Frequently Asked Questions
What is G.O.Ms.No.254?
It is a Government Order issued by the Andhra Pradesh Finance (TFR.II) Department on 17 March 2004. It amended the earlier instructions concerning employee payments through banks.
What is the prescribed payment time limit?
The DDO must make the payment within 15 days from the date of drawal.
What should be done if a payment cannot be made within 15 days?
The undisbursed amount must be remitted to the Treasury under the head of account from which it was originally drawn.
Can a DDO keep the unpaid amount in the bank account?
The order does not permit the amount to remain undisbursed for an indefinite period. Payment must be made within 15 days, or the amount must be remitted to the Treasury.
Why should the amount be remitted under the same head of account?
Remitting it under the relevant head of account ensures correct accounting and restoration of the amount to the government account from which it was drawn.
Does the order apply to educational offices?
The order was circulated to District Educational Officers, Chief Executive Officers of Zilla Parishads and other government authorities. Educational offices and school DDOs should follow the financial instructions applicable to their establishment.
Who issued the order?
The order was issued in the name of the Governor of Andhra Pradesh and signed by V.S. Sampath, Principal Secretary to Government.
Should Telangana offices still verify the latest instructions?
Yes. Since this Government Order was issued in 2004, before the bifurcation of Andhra Pradesh, offices in Telangana and Andhra Pradesh should verify its present applicability along with subsequent Finance Department and Treasury instructions.
Conclusion
G.O.Ms.No.254 establishes a clear financial accountability rule: amounts drawn by DDOs must be paid within 15 days from the date of drawal. If payment is not completed, the undisbursed amount must be returned to the Treasury under the appropriate head of account.
The order promotes timely payments, transparent accounting and responsible handling of public funds. DDOs should maintain proper records, monitor every drawal and comply with the latest Treasury and departmental instructions.
Primary Source: Government of Andhra Pradesh, Finance (TFR.II) Department, G.O.Ms.No.254, dated 17 March 2004.
Disclaimer: This article is an informational summary of the attached Government Order. Employees and DDOs should consult the original order and the latest official Treasury or Finance Department instructions before taking administrative or financial action.
