Financial Regulations Volume I PDF 1986 (Army & Air Force)

FINANCIAL REGULATIONS VOLUME I 1986 (ARMY AND AIR FORCE)  (i) PREFACE 1. The last edition of "Financial Regulations”, Volume 1, for Army and Air Force was issued in 1952. This has been revis...

FINANCIAL REGULATIONS VOLUME I 1986 (ARMY AND AIR FORCE)  (i) PREFACE 1. The last edition of "Financial Regulations”, Volume 1, for Army and Air Force was issued in 1952. This has been revised and up-dated. All Changes' upto 31st December 1985 have been incorporated in the revised edition. The regulations contained herein supersede the regulations contained in the 1952 edition. 2. A table of concordance has been added at the end which will help in tracing in 1986 edition corresponding rules in the superseded edition. The table also gives references on which the revised regulations are based. 3. Any errors or omissions may be reported to Regulations Directorate, AG's Branch, GHQ, Rawalpindi. Rawalpindi ed IjIal Haider Zaidi 20 April 1986 Secretary to the Government of Pakistan Ministry of Defence  (iii) TABLE OF CONTENTS Serials Pages 1. Preface i 2. Record of Amendments ii 3. Table of Contents iii- ix 4. List of Annexes x 5. List of Abbreviations xi- xv CHAPTER 1 - GENERAL PROVISIONS Rules Pages 6. Short Title and Commencement 1 1 7. Definitions 2 1- 2 8. Powers of the President 3 2- 3 9. Validity of joint service instructions, 4 3 Army instructions and Air Force instructions 10. Sanctioning of defence expenditure 5 3 11. Financial canons to be observed 6 3- 4 12. Exercise of financial powers 7 4 13. Objects on which expenditure may be sanctioned 8 4- 5 14. Financial powers of Services Chiefs 9 5- 6 15. Expenditure Equalisation Deposit Accounts 10 6- 7 16. Additional powers of the Chief of Army Staff and 11 7- 8 the Chief of Air Staff 17. Financial powers of other authorities 12 8- 11 18. Additional powers of RV&FC Officers 13 11  (iv) Serials Rules Pages 19. Financial powers of heads of Pakistan 14 11 Ifissions Abroad 20. Powers of officers of the MGO services 15 11- 13 21. Powers in respect of MES expenditure 16 13 22. Pensions 17 13 23. Powers are personal 18 13 24. Sanction in instalments 19 13 25. Authorisation of other officer to for an officer 20 13- 14 possessing financial powers 26. Financial advisers 21 14 - 17 27. Controllers of army and air force accounts 22 17 as financial advisers 28. Communication of sanction to controller 23 17 of accounts 29. Lapsing of sanction 24 17 30. Sanctioning of expenditure not covered by rule 25 17 31. Claims of petty nature 26 17- 18 32. Issue of store in exceptional cases 27 18 33. Petty items of recurring expenditure 28 18 34. Expenditure that may not be sanctioned 20 18- 19 35. Abandonment of revenue and expenditure 30 19 36. Expenditure against allotment 31 19- 21 37. Estimate of operational expenditure 32, 21 38. Financial powers under civil service regulations 33 21- 22 39. Whole time of a government servant 34 22  (v) Serials Rules Pages 40. Fees and honoraria 35 22- 24 41. Cheques 36 25- 28 CHAPTER 2 - LOSSES, WASTAGES AND DAMAGES TO PUBLIC PROPERTY - PROCEDURE AND POWERS TO WRITE OFF 42. General rules for observance 37 29 43. Losses of store 38 29- 40 44. Public money 39 40 45. Loss of public money 40 40- 42 46. Exceptions 41 42- 45 CHAPTER 3 - PURCHASE OF STORES, TRAINING AIDS AND TRAINING PUBLICATIONS 47. General rules 42 46 48. Financial powers 43 46- 51 49. Despatch of stores 44 51 50. Disposal of surplus, obsolete and waste stores 45 51- 53 5l. Procurement of centrally purchased stores 46 53- 54 CHAPTER 4 - BUDGET ESTIMATES AND ASSIGNMENTS 52. Budget estimates 47 55- 60 53. Assignments 48 60- 62 CHAPTER 5 - CLAIMS AND RECOVERIES 54. General rules 49 63- 64 55 Adjustment 50 64 56. Recovery of amount due 51 64-65  (vi) Serials Rules Pages 57. Civil courts - attachment orders 52 65 58. Limitation of claims 53 65- 66 59. Claims governed by civil service regulations 54 66- 67 60. Pension claims 55 67 61. Time barred claims 56 67- 68 CHAPTER 6 - VOCABULARY AND PAYMENT ISSUE RATES 62. Vocabulary rates 57 69 63 Payment issue rates 58 69- 71 64. Claims against carrying agencies 59 71 CHAPTER 7 - PAY AND ALLOWANCES AND LAST PAY CERTIFICATE 65. Pay and allowances 60 72- 74 66. Last pay certificate 61 74- 77 CHAPTER 8 - AUDIT AND OBJECTIONS 67. General rules 62 78 68. Erroneous Payments 63 78 69. Remission of dis- allowances 64 78- 80 70. Audit and retrenchments by audit officers 65 80 71. MAG not be over ruled etc 66 80 72. Powers of audit officer 67 80- 82 73. Objection statements 68 82 74. Appeals 69 82 75. Retrenchment from contractor's bills and appeals 70 82  (vii) Serials Rules Pages CHAPTER 9 - STANDING SECURITY DEPOSITS 76. How calculated 71 83- 84 77. Forms of standing security deposits 72 84- 87 78. Refund 73 87- 88 79. Vacation of appointment 74 88 80. Lapsed deposits 75 88- 89 81. Bank securities 76 89 82. Contract securities 77 89- 92 83. Custody of securities and payment of interest thereon 78 92- 93 84. General promissory notes - return and sale of 79 93 85. Provincial and municipal debentures and port trust bonds 80 93 86. Bank deposit receipts 81 93- 94 87. Saving bank deposits 82 94 88. Fidelity bonds 83 94- 95 89. Security deposits- government servants 84 95- 97 CHAPTER 10 - CONTRACTS 90. General rules 85 98 91. Supplies and services 86 98- 99 92. Commercial or non- government concerns 87 99 93. Arranging of contracts 88 99- 100 94. Sanctions and modifications of contracts 89 100- 101 95. Articles of ASC supply for operations not termed 90 101 mobilization  (viii) Serials Rules Pages 96. Legal representative of a deceased contractor 91 101- 102 97. Estimating requirements 92 102 98. Irregular concessions to contractors 93 102 99. Advertisements 94 102- 103 100. Tenders 95 103 101. Opening of tenders 96 103- 104 102. Errors in tenders 97 104 103. Non- receipt of tenders 98 104 104. Standing security deposit 99 104 105. Contract deeds 100 105 106. Power of attorney 101 105 107. Duration of contracts 102 105 108. Transfer of contracts 103 106 109. Supplies 104 106 110. Advances 105 106 111. Compensation for breach of contract 106 106- 107 112. Interpretation of Contracts 107 107 113. Recoveries from securities in default 108 107 114. Payment of bills 109 107- 108 CHAPTER 11 - REMITTANCES AND FAMILY ALLOTMENTS 115. Family allotments 110 109 116. Family remittances 111 109- 111  (ix) Serials Rules Pages 117. Remittance of credit balances 112 111 CHAPTER 12 - MISCELLANEOUS PROVISIONS 118. Accounts 113 112 119. Statistics of expenditure 114 112 120. Cash and store transactions 115 112 121. Responsibility for expenditure 116 112 122. Fractions in amounts 117 112 123. No demand certificate 118 112- 113 124. Submission of claims 119 113 125. Arrears 120 113 126. Contributions 121 113 127. Broken periods 122 113 128. Line funds 123 113- 114 129. Rates - army remount stores 124 114 130. Rationing of animals transferred from 125 114- 115 army remount depot. 131. Financial irregularities 126 115 132. Control and inspection of accounts 127 115 133. Income tax 128 115 134. Leave and pension contributions 129 115 135. Haircutting and washing services 130 115  (x) LIST OF ANNEXES Serials Annex Title Pages 1. A Categories of cases requiring prior reference to the governments. 116 2. B Accounts areas 117- 119 3. C Form of registers to be maintained by controlling authority for watching expenditure against allotment. 120- 124 4. D Instruction for the guidance of officers who are required to make purchases of stores under the provisions of rules for the supply of articles required for the public service. 125- 132 5. E Procedure for purchase of stores by the Directorate General of Defence Purchase and Directorate of Procurements. 133- 161 6. F Forms for the execution of different security bonds. 162- 168 7. G Indemnity bond to be executed by heirs of deceased contractors for payment of their security deposits. 169 8. H Contracts by whom sanctioned. 170- 175 9. J Provision of haircutting and washing services to troops. 176- 178  (xi) LIST OF ABBREVIATIONS Abbreviations In Full ADEME Assistant Director, Electrical and Mechanical Engineers ADMF Assistant Director Military Far AFA Assistant Financial Adviser AG Adjutant General AHQ Air Headquarter ADS&T Assistant Director Supply and Transport AR (I) Army Regulations (Instructions) AR (R) Army Regulations (Rules) Bde Brigade BPS Basic Pay Scale CAO Chief Administrative Officer CAAF Controller of Accounts Air Force CAS Chief of the Air Staff CASC Commander Army Service Corps CE Chief Engineer CEME Commander, Electrical and Mechanical Engineers CFA Competent Financial Authority CFM Controller, Flour Mills CITD Controller of Inspection and Technical Development CMA (DP) Controller of Military Account (Defence Purchase)  (xii) Abbreviations In Full CMES Commander Military Engineer Services CO Commanding Officer COD Central. Ordnance Depot COAS Chief of Army Staff COFA Controller of Ordnance Factory Accounts COO Chief Ordnance Officer CSR Civil Services Regulations CVSD Central Vehicle Supply Depot DADMF Deputy Assistant Director Military Farm DADOS Deputy Assistant Director Ordnance Services DRV&F Director Remounts Veterinary and Farms DADIIN&F Deputy Assistant Director Remount, Veterinary and Farms DADS&T Deputy Assistant Director Supply and Transport DCE Deputy Chief Engineer DDMF Deputy Director Military Farm DDMI Deputy Director of Military Intelligence DFA Deputy Financial Adviser DGDP Director General Defence Purchase DGMS Director General Medical Services DGS&D Director General Supply and Development DITD Director Inspection and Technical Development DMUE Director of Military Training and Education DML&C Director of Military Lands and Cantonments  (xiii) Abbreviations In Full DOF Director of Ordnance Factory DSD Director of Staff Duties DOS Director of Ordnance Services Dy Deputy E-in-C Engineer-in-Chief EME Electrical and Mechanical Engineer FA Financial Adviser FCNA Forces Command Northern Areas FOR Free on Rail GE Garrison Engineer GHQ General Headquarters GS General Staff GOC General Officer Commanding HQ Headquarters ISPR Inter Services Proof Ranges WO Junior Commissioned Officer LAO Local Audit Officer Log Logistics LPC Last Pay Certificate MA Dept Military Account Department MAG Military Accountant General ME Maintenance Engineer MEO Military Estates Officer  (xiv) Abbreviations In Full MGD Military Grain Depot MGO Master General of the Ordnance MES Military Engineer Services MT Mechanical Transport MRO Money Receipt Order MS Military Secretary MVH Military Veterinary Hospital NCO Non Commissioned Officer OC Officer Commanding OO Ordnance Officer OR Other Ranks PAF Pakistan Air Force PMAD Pakistan Military Account Department PMA Pakistan Military Academy pro Provost PSO Principal Staff Officer PTF Pakistan Territorial Force QMG Quarter Master General Regs Regulations Supt Superintendent S&T Supply and Transport TA Travelling Allowance  (xv) Abbreviations In Full TO&E Table of Organization and Equipment UA Unit Accountant UK United Kingdom VCOAS Vice Chief of Army Staff  1 In exercise of the powers conferred by section 176A of the Pakistan Army Act, 1952 (XXXIX of 1952), and section 203 of the Pakistan Air Force Act, 1953 (V1 of 1953), the Fed-6ii--(government is pleased to make the following regulations, namely:- FINANCIAL REGULATIONS, VOLUME 1, 1986 CHAPTER 1 - GENERAL PROVISIONS 1. Short title and commencement a. These regulations shall be called the Financial Regulations, Volume 1, 1986. b. They shall come into force at once. 2. Definitions. In these regulations, unless there is anything repugnant in the subject or context:- a. "Accounts area" means the geographical limits of an area wherein military units, formations or establishments are located and whose accounts are dealt with by one and the same Controller of Accounts. b. "Audit Officer" includes an accounts and internal audit officer in whose audit control a public servant is serving or, for the purpose of verification of his service has served. c. "Brigade or Logistics Area Commander" includes Divisional Commander in case of units and stations directly under Division Headquarters. d. "Compensatory allowance" means an allowance granted to meet personal expenditure necessitated by the special circumstances wherein duty is performed. e. "Competent financial authority" means the authority within whose power the amount for issue falls. f. "Controller of Accounts" includes the Controller of Military Accounts, the Controller of Military Accounts (Pensions) and the Controller of Accounts, Air Force. g. "Emoluments" means pay and includes allowances, staff consolidated pay and all other items of personal remuneration drawn by an indivi dual other than compensatory allowance. h. 11Fee'5 means a recurring or non-recurring payments to a Government servant from a source other than general revenues. i. "Fresh expenditure" means any expenditure not provided for in the  2 budget which requires sanction of higher authorities. j. "Honorarium" means a recurring or non-recurring payment made to a Government servant from general revenues as remuneration for special work of occasional nature. k. "Local fund" means revenues administered by bodies controlled by the Government with regard to proceedings generally or specific matters, manner of sanctioning of their budgets, creating or filling up of particular posts, enactment of leave, pension or similar rules and includes revenues of a body notified as such by the Government. 1. "Local stores" ' includes articles of local produce or manufacture other than imported stores. m. "Ministerial appointment" means an appointment held by a person in an office or establishment whose duties are not of an administrative or executive nature. n. "Office contingencies" includes charges which are incidental to the management of an office. o. "Public fund" means the fund financed entirely from public money whose unexpended balance is refundable to the Government in the event of its not being spent on the object of its grant and includes:- (1) Un-issued pay and allowances. (2) Office allowance fund. (3) The estates of deceased men and deserters. p. "Public claims" means any public debt or disallowance and includes any over-issue made through an error of fact, a deficiency, or irregular expenditure of public money or stores of which after due investigation no explanation satisfactory to the Government is given by the person who is responsible for the same. q. "Soldier" includes a Junior Commissioned Officer, a warrant officer, a non-commissioned officer and a sepoy other than an enrolled non-combatant. 3. Powers of the President a. In accordance with Article 243 of the Constitution of the Islamic Republic of Pakistan, the President, in respect of the Armed Forces, shall:- (1) Raise and maintain the armed forces and the reserves thereof.  3 (2) Grant Commission in such Forces. (3) Appoint Chairman Joint Chiefs of Staff Committee, the Chief of the Army Staff, the Chief of the Naval Staff and the Chief of the Air Staff and determine their salaries and allowances. b. Delegation-Of by the President. The President may delegate powers to sanction expenditure from Federal revenues upon subjects in relation to Defence Services subject to such condition, as he may think fit, either to any officer subordinate to him or to a Provincial or L4)cal Government acting as his agent. Any sanction given under this rule shall remain valid for the specified period for which it is given. Orders of delegation passed under this rule may contain a provision for re-delegation by the authority to which the powers are delegated. 4. Validity of Joint Service Instructions, Army Instructions and Air Force Instructions. These instructions shall be assumed to have received the concurrence of the Ministry of Finance unless Audit Officers are informed otherwise by the Ministry of Finance (Finance Division Military). 5. Sanctioning of Defence Expenditure. Defence expenditure may be sanctioned by the Ministry of Defence and by the authorities subordinate to it on the following conditions, namely:- a.. It shall pertain to defence. b. The exercise of delegated power shall be subject to the observance of any general or special directions which the authority delegating power may issue at any time, whether generally or in reference to a particular case. 6. Financial C4nons to be observed. In incurring or sanctioning expenditure following canons shall be observed by officers exercising financial powers. Audit officers shall also be responsible for watching that the canons are observed: - a. Every officer should exercise the same vigilance in respect of expenditure incurred from Government revenue as a person of ordinary prudence would exercise in respect of the expenditure of his own money. b. No authority shall exercise its power of sanctioning expenditure to pass an order which will, directly or indirectly, be to its own advantage. c. The amount of allowances, such as travelling allowance, granted to meet expenditure of a particular type, shall be so regulated that it does not, on the whole, become a source of profit to the recipient. d. Government revenues shall not be utilised for the benefit of a particular person or a section of the community unless: -  4 (1) The amount of expenditure involved is insignificant. (2) A claim for the amount could be enforced in court of law. (3) The expenditure is in pursuance of a recognised policy or custom. 7. Exercise of Financial Powers. The financial powers, conferred on authorities subordinate to the Federal Government, shall be exercised subject to the condition that funds can be made available from the sanctioned budget provision, either from the provision made for the purpose, or from the provision made for unforeseen expenditure or by re-appropriation. 8. Objects on which expenditure may be sanctioned. The following expenditure may be sanctioned under rules 12 and 15 of these regulations for following objects, namely:- a. Monthly contingent expenditure on account of any workshop, stores- depot, hospital, military farm or remount depot. b. Temporary establishments or labour in excess of fixed scales. c. ufacture or issue of special tools and equipment or other articles for experimental purposes or for expediting production. d. Rewards for information leading to the conviction of incendiaries or for the recovery of stray cattle. e. Rewards for specially prompt and meritorious action in connection with the extinguishing of fires and the saving of life and property from damages arising therefrom. f. Rewards for information leading to the conviction of personnel accused of bribery and corruption. g. Rewards for information leading to the prevention of thefts from supply or ordnance depots, etc. h. Expenditure on tests, trials and experiments within the annual approp- riations, placed at the disposal of the DOS and the DITI), Command ISPR or within the monetary limit fixed for these purposes, without reference to the financial limits prescribed in ride 12 provided that the prior concurrence of the financial Adviser is obtained. Notes:- 1. Rewards under sub-rule e and f above, not exceeding.500.00 in any individual case, will be sanctioned by the CFA concerned. Cases involving payment of rewards exceeding Rs.500.00 but not exceeding Rs.1,000.00 will be sanctioned by the Service Chiefs and those involving payment of rewards exceeding Rs.1,000.00 will be submitted for orders of Government.  5 2. Government servants shall also be eligible for the above rewards in respect of acts other than those performed in their official capacity. 9. Finance Powers of Service Chiefs a. Within the rupee and foreign exchange allocations made to the Service Headquarters, the Chief of Staff of the Service will hav ' e full authority to sanction expenditure except in the following cases upto the limits prescribed:- (1) In the exceptional event of lump sum provisions made for certain categories of expenditure which could not be finally cleared at the time of budget discussions visualised in ride 43, these categories of expenditure will be cleared as soon as possible after the budget allocations are made. (2) Categories of cases mentioned in Annexe A to this volume. In the case of these categories, reference will have to be made to the Government. Re-delegation of powers by Service Chief may be done, with the approval of the Ministry of Defence. b. Creation of posts under the powers of Service Chief may be made even if it affects posts included in TO&E issued under Government sanction. Such sanctions will remain valid for one financial year or till the date of issue of amendment of TO&E by the Government, whichever is earlier. However, in case the amendment in the TO&E is not issued by the Government during the financial year of the sanction issued under the authority vested in the Service Chief, there will he no bar to the issue of such further sanctions under the powers of the Chief for each subsequent financial year as may be expedient. c. The Service Chief shall have the authority to make re-appropriation within the budget grant of his Service in consultation with the Financial Adviser of the Service except in the following cases which will require the approval of the Government:- (1) Re-appropriation from capital. heads to Revenue heads and vice versa. (2) Re-appropriation from other heads to Pay and Allowances. Such re- appropriation will be referred to the Ministry of Defence and the Military Finance so that eventually these are incorporated duly in the allocation letters which are issued by the Ministry of Defence. No re -appropriation will be admissible between Residential Capital works and non-residential Capital Works which are budgeted under two separate demands.  6 d. Incurring of any expenditure on introductory action upto Rs 5,00,000/- per item for purchase of stores and equipment for tests and evaluation purposes from within the existing overall budget allocations subject to total expenditure in any one year not exceeding Rs.20,00,000/-. Incurring of any expenditure of R.2,00,000/- on contingency items, temporary establishment, employment of labour, rewards, etc. Incurring of any ordinary expenditure at his discretion upto Rs.10,00,000/- annually subject to the following conditions, namely:- (1) That the expenditure relates to a single payment and does not cover any recurring charge. (2) That no payment is made to a Government servant of any remuneration or allowance to which he is not entitled under the ordinary rules. (3) That the expenditure does not involve an express contravention of any existing rule or regulation and that no grant is made for Services or individual projects in which the Government of Pakistan have previously definitely refused to incur expenditure. g. The Services Chief concerned shall be responsible for ensuring that expenditure is incurred in accordance with canons of financial propriety and relevant rules.  7 11. Additional Powers of the Chief of the Army Staff and the Chief of the Air Staff. The Chief of the Army Staff or the Chief of the Air Staff may carry out work, on payment (eg, aerial photography for survey and other purposes, survey of air routes, carriage of mails) for Federal Government departments and Provincial  8 Governments, subject to the following conditions, namely:- a. The charges to be recovered from Federal Government departments and Provincial Government on account of such work shall normally be confined to the travelling and out-of-pocket expenses of personnel and the cost of material used, eg, photographic gear, fuel expended, and no charge shall be made on account of overhead charges for maintenance of aircraft and personnel, but in the case of Provincial Governments an additional charge to cover the cost of overhauling in gle-engined and twin-engined aircraft, as the case may be, shall be made. This will be notified from time to time in Air Force Instructions. b. Ikterial will be charged for in accordance with the rules in the Memorandum of Instructions to the Price Lists of Air Force Equipment. c. When the work carried out is in the nature of an experiment of a department of the Federal Government or a Provincial Government the result of which will also benefit the PAF, half the charges prescribed for the Federal Government department or provincial Government shall be recovered. 12. Financial Powers of Other Authorities. The following officers are empowered to sanction expenditure on any of the objects enumerated in rule 8 upto the limits shown against each: - a. AG, QMG, MGO, IGT&E and PS0s concerned Rs. 50,000.00 in AHQ. b. Corps Commander. Rs. 40,000.00 c. Divisional Commander, Force Commander, Rs. 25,000.00 Northern Area or Independent Brigade Commander. d. Logistic Area Commander or Brigade Rs. 15,000.00 Commander. e. Surgeon General, DS&T, DOS, DEME, Rs. 5,000.00 DITD & DRV&F. f. Commandants appointment holders (Col & Rs. 5,000.00 above) of following establishment (1) Command and Staff College. (2) Training Institutions or Establishments. (3) Ordnance Depots.  9 (4) Central and Combined Workshops. (5) Military Hospitals. (6) Military Farms and Remount Depots. (7) Chief Inspectors of Inspectorates. (8) District Remount Officers. (9) DADOS at PMA and OTS. g. Commanding Officers appointment holders Rs. 3,000.00 (Lt. Col.). (1) Training Institutions or Establishments. (2) Supply Depots. (3) Ordnance Depots. (4) Central, Combined, Medium/Area and Station Workshops. (5) Military Hospitals. (6) Medical Stores Depots. (7) Military Farms and Remount Depots. (8) Chief Inspectors of Inspectorates. (9) ADST, Logistic Area and C0s, S&T Bns. (10) ADOS Corps /Division /Force Commander, Northern Area/Logistic Area. (11) CEME, CO EME Bn and ADEME Logistic Area, (12) District Remount Officers. h. Officers Commanding appointment holders Rs. 1,500.00 (Major and below) (1) Training Institutions/Estabbshments. (2) Supply Depots. (3) Ordnance Depots.  10 (4) Station/MES Equipment Workshops, Independent Workshop Companies. (5) Military Hospitals. (6) Medical Stores Depots. (7) Military Farms and Remount Depots. (8) Chief Inspectors of Inspectorates. (9) District Remount Officers. j. Officers Commanding, Units /Formations other Rs. 500.00 than those mentioned at sub-rule f, g and h above. k. Chief Administrative Officer, GHQ:- (1) Contingent Expenditure of non- Upto Rs. 5,000.00 recurring nature. (2) Contingent Expenditure of Upto Rs. 500.00 recurring nature. l. PAF Officers:-- (1) Base Commanders (Air Cdre) Rs.10,000.00 (2) Base Commanders (Group Capt) Rs. 5,000.00 (3) OC Maintenance Unit (a) Group Capt Rs. 5,000.00 (b) Wing Commander Rs. 3,000.00 (c) Sqn Ldr & below Rs. 1,500.00 (4) OC units other than mentioned at sub Rs. 500.00 para (3) above. Notes:- 1. Divisional, Indep Bde Commanders, Commander AACornd and Commander FCNA are empowered to write off, under their financial powers, expenditure in excess of the amount of office allowance authorised under Pay and Allowances Regs, when such excess is caused by the enhanced rate of stationery charged by the Government Stationery Offices.  2. District Remount Officer, Horse/Mule Breeding Area may, 11 within the limits of his financial powers, transport his office records by other than the cheapest method when this is necessary in the interests of the Service. 3. Officers Commanding remount depots may sanction the entertainment of casual workmen and farm labourers on lowest daily rates of pay to the extent necessary to carry out duly authorised workmen in the depots under their charge. 4. An OC supply depot may incur contingent expenditure of an authorised character upto Rs.1,500.00 a month. ADST may sanction monthly contingent bills upto Its.3,000/ provided that no single item exceeds Rs.1,200.00. Expenditure in excess of these amount required the sanction of the authority within above powers of sanction the amount at issue lies. 5. In respect of the Embarkation HQs the Embarkation Commandant, Karachi, may incur contingent expenditure of an authorised character upto the monthly limit of Rs.15,000.00. Expenditure in excess of this amount shall require the sanction of the QMG. 13. Additional Powers of RV&FC Officers. Certain special powers exercisable by officers of the Farms Wing in respect of local purchase of stores, are laid down in the Financial Regulations, Volume II. 14. Financial Powers of Heads of Pakistan Mission Abroad a. Heads of Pakistan Missions in foreign countries will exercise, in con-sultation with their Financial Advisers (if there is any), expenditure the same powers as are laid down in paragraphs 6 to 8 of appendix 3-A of the General Financial Rules, Volume II, in respect of contingencies and miscellaneous expenditures relating to the offices, etc, of the Military Attaches /Advisers and Defence Stores Procurement Organization attached to them, provided that there are no specific orders to the contrary and provided further that the expenditure can be met from within the sanctioned budget allotment under the relevant head of the Defence Services Estimates of the year in which the expenditure is proposed to be incurred. b. Any modification in the financial powers laid down in General Financial Rules, referred to in sub-rule a above, if and when notified by the Government, shall, subject to other condition specified in the above sub-rule, apply. 15. Powers of Officers of the MGO Sertdces. On the condition that the financial officer certifies that budget provisions exists to cover the expenditure involved;  12 Chief Inspector of Armaments, Chief Inspector of Vehicles and Engineering Equipment, Chief Inspector of Electronics and Instruments, Chief Inspector of Stores and Clothing, may sanction the employment of the following:- - a. Temporary Clerical Personnel, etc. Temporary clerical personnel public servants in Basic Pay Scales 1 and 2, employed in shops and sheds, workmen, including skilled, serni-skilled and unskilled personnel, supervisors, examiners, planners, etc, in the lowest scale, to the extent necessary to carry out duly authorised manufacture or inspection work at the minimum of the Basic Pay Scales for the respective categories. b. Temporary Supervising Establishment. Temporary supervisors, examiners and other supervisory staff, eg, estimators, planners and rate fixers who are not covered by sub-rule a above when necessary in the interest of efficiency or economy, for periods not exceeding six months in the case of ordnance and one year in the case of inspection establishments. At the minimum of the prescribed scales of pay. The Director of Inspection and Technical Development may, when necessary, sanction the employment of such men in the senior grade and telephone operators, gate keepers, draughtsmen, tracers, photographers, laboratory assistants and other similar technical personnel as required by the exigencies of the service in ordnance and inspection establish ment (including laboratories), respectively for periods not exceeding one year in each case. At the minimum of the prescribed scales of pay. All temporary supervising establishments serving on the 30th June of any year will be regarded as technically discharged on that date. Their re-engagement as necessary, having regard to the programme of manufacture and inspection for the ensuing financial year, shall be arranged for in accordance with these rules. c. Commandants, Central Ordnance Depots, Chief Ordnance Officers, Officers Commanding Ordnance Installations, Officers Commanding Electrical and Mechanical Engineering Workshops may sanction the employment of temporary establishment as under:- (1) Workmen, ie, skilled, semi skilled and unskilled labour properly so called and gate keepers, firemen, leader firemen and telephone operators, etc, to the extent necessary to carry out duly authorised manufacture, repair orders or other work in connection with the storage, loading and unloading of stores, etc, at the minimum of the prescribed scales of pay. The DOS and DEME may, when necessary, sanction the employment of highly skilled mistries and other supervisory staff--At the minimum of the prescribed scales of pay. (2) Men for work of a clerical nature, when necessary in the interest of efficiency or economy. upto a period of one year in each case - At the minimum of the prescribed scales of pay of lower  13 division clerks. All such personnel who may be serving on the 30th June of any year will be regarded as technically discharged on that date. Their re-engagement, as necessary, should be arranged for in accordance with these rules. (3) Public servants in Basic Pay Scale 1 and 2, when necessary in the interest of efficiency or economy, upto a period of one year. At the minimum of the prescribed scales of pay. For the purpose of determining what authority shall be competent to sanction the employment of temporary establishments under the provisions of this rule, no account shall be taken of the period during which the temporary establishment technically discharged on 30th June has already been employed, in case where it is desired to re-employ such establishment for a further period. 16. Powers in respect of MES Expenditure. The financial powers exercisable in respect of MES expenditure are laid down in MES Regulations. 17. Pensions. The powers exercisable in respect of the grant of pensions are laid down in Pension Regulations and in separate orders issued in respect of Air Force. 18. Powers are Personal. The powers authorized by these regulations are personal and cannot be delegated to any subordinate officer, but see rule 20. 19. Sanction in Instalments. The limit which has been set in each case extends to each separate sanction. The criterion in any case is the total cost of measure and no measure, which requires the sanction of superior authority,.shall be sanctioned by a subordinate authority in instalments. 20. Authorization of other officer to for an Officer possessing financial powers a. In every case the officer possessing financial powers shall be personally and unreservedly responsible for any orders purporting to be issued in accordance with the degree of relaxation permitted by this rule whether the communication conveying the orders is signed by himself or by an officer subordinate to him. b. On the strict understanding that the sole responsibility rests on him, an officer possessing financial powers may authorise a subordinate officer to sign communications and documents of a financial character on his behalf, provided that the name of the officer, who is authorised to sign, is communicated to the Audit Officer concerned. In such cases it shall not be necessary for the officer possessing financial powers himself to sanction each item personally. This applies also in the case of special powers exercisable by competent authorities. c. Provided that the above conditions are observed, claims for minor allowances, which should ordinarily be countersigned by a formation  14 commander may be countersigned "for him" by an officer authorised to sign for him. d. When an officer possessing financial powers is absent on leave or duty financial responsibility will rest on the officer performing his duties, who will, for the time being exercise the full powers of the absentee. 21. Financial Advisers a. In each Service Headquarters, there will be a Financial Advisers (FA) of appropriate status appointed by the Ministry of Finance whose tenure shall be three years. The Service chief shall be consulted invariably in the matter of appointment of persons as Service Financial Advisers. In selecting personnel for the post of Financial Advisers due care will be taken to appoint people familiar with the organisation where they are being seconded. b. The FinanicaI Adviser will be attached to the service chief but his administrative control will vest in the Ministry of Finance. In respect of professional standards and procedures he will facilitate functioning of the Service and make full utilisation of the budget provisions, with due regard, for efficiency as well as economy. c. The Financial Advisers to the Services shall:-- (1) Advise the Service Chief on all financial matters. (2) Examine and tender advice on the budget estimates and reviews prepared by the Director of Budget before their submission to the Service Chief. (3) Assist in the scrutiny of all new measures. (4) Assist in processing all cases with Government which require Government approval vide annex B to this volume. d. Th e financial advice will be restricted to the financial propriety of the proposals. For reasons to be recorded, the Service Chief may over rule the Financial Adviser in cases which fall within the authority delegated to Service Chief. Differences of opinion on whether a case falls within the authority delegated to Service Chief shall be referred to the Ministry of Defence. e. Consistent with the principles underlying the system, the following procedure shall be adopted in obtaining financial advice and associating Finance Officers in cases which fall within the delegated authority of the Service Chief:- (1) Committees. Full use of the Finance Officers should be made  15 by nominating them as members of policy and priority Committees, at the discretion of the Service Chief. (2) Establishments. Finance Officers will be associated in the review or reorganisation of military units and formations involving changes in manpower or equipment. (3) Indents. All indents, not exceeding Rs.25 million in value, may be finalised by Service Headquarters in accordance with the prescribed procedure but those exceeding Rs. 25 million may continue to be referred for financial advice. (4) Works. Finance Officers wil] be associated with works proposals at the stage of scrutiny of projects and contract agreements as provided for in the relevant orders. (5) Capital Works Programme (a) The Capital Works Programme of a Service for next financial year shall be drawn up in consultation with the Service Financial Adviser by the 31st May of the outgoing financial year on the basis of the Budget Estimate for the ensuing year. The new works may be arranged in the order of priority ie priority, I, II and 111. Within one week of receipt of the sanction allocation for the new financial year, adjustments may be made in it on the basis of the actual budget allocation for this purpose and it shall then be submitted for the approval of the Secretary General Defence. Ministry of Defence will finalise it in consultation with the ASMF within one week of receipt of the programme. (b) The Services may issue or take up for issue, administrative sanctions for works included in the last years' approved Capital portion there of in the normal way. Such works should be duly accounted for in the overall approved ceiling of the new works for the current financial year. (c) Foreign Training Programme. The foreign training pro- gramme of officers and personnel shall be prepared by the Services and got cleared from the Financial Adviser of the Service w61 in advance of the next financial year ie by the 31st May. Immediately, on receipt of the sanctioned allocation for the new financial year, the programme shall be tailored according to the allocation for this purpose and submitted for Government approval. Individual case sanctions included in the programme so approved may be issued by the Service Headquarters. Any change in the approved programme would require Government approval.  16 (d) FA's Advice Certificate. FA should tender advice on works programme, training programme and other new measures for their inclusion in the next years' budget without insisting on the funds availability certificate. (e) Endorsement of Sanctions. To avoid audit objections at a later stage sanctions issued by Service Headquarters, required to be issued with the concurrence of the Service FA and on which such concurrence has been obtained, shall be endorsed by the Finance Officers, to the Controllers of Accounts, within 24 hours of their receipt. Sanctions which are issued by the Service authorities in exercise of powers delegated to them under the Regulations or Government orders, need not be endorsed by the Service FA. Even in the case in which the advice of the Service FA has been over-ruled in accordance with these orders the sanction letter will be duly endorsed by the AFA, as stated above. (f) References to FA's. It will be made in the following manner, namely:- (i) All observations or queries raised by Finance Division on a proposal should be, made once and not in piecemeal. Thereafter the case should be deemed to be completed. (ii) The observations made by Finance Division be sent to the Service Headquarters. (iii) Not more than three references should be made to the Service FA's Office. The cases should be submitted complete in all respects at the normal AFA or DFA level first, the second reference should be made at DFA or FA level and the final, if still necessary, at FA level. The advice rendered at this stage should be taken to be the final advice of the FA. If the Service Chief considers at this stage that the advice should be over ruled for good and sufficient reason, action should be taken in this behalf as provided in sub rule d above. (iv) Visit to Service Units or Formation. Finance Officers will be encouraged to visit field units to familiarise themselves with the working of the Armed Forces. (v) Meetings with FA Service. To clear backlog of out- standing cases, if any, periodical meetings may be  17 held between the Director Budget accompanied by the Director concerned with the subject and the FA. The minutes of the meeting should be forwarded to PSO concerned at the Service Headquarters and the ASMF inter alia. Later on, such meetings may be held with the Deputy Financial Advisers also where feasible. 22. Controller of Army and Air Force Accounts as Financial Adviser. Controllers of Army and Air Force Accounts are invested with the duty of affording financial advice to commanders and their staff. Fullest use shall be made of the assistance of the Controllers in investigating all branches of expenditure with a view to restricting expenditure as far as possible, consistent with efficiency. 23. Communication of Sanction to Controller of Accounts. All sanctions by WA shall be communicated to the controller of Accounts concerned. 24. Lapsing of Sanction. A sanction for any fresh expenditure, not acted on for a year, shall lapse unless it is specifically renewed, except in the case of:- a. An allowance sanctioned for an appointment or a class of officers, not drawn by a particular incumbent of the appointment or by a particular set of officers. b. Additions made gradually from year to year to a permanent establishment under a general scheme. c. An approved MES work. Fresh sanction is necessary if work is not commenced within five years of the date of sanction. 25. Sanctioning of Expenditure Not Covered by Rule. A formation Commander, Commander Arty, the Chief of the Air Staff and OC No 1 Group may sanction, upto the limit of powers conferred on him by rule 12, non-recurring expenditure not falling within categories enumerated in rule 8 and not provided for in these regulations, or not precisely or adequately covered by existing regulations, subject to the condition that the expenditure must be a reasonable charge against Defence Services funds which, in his opinion, is likely to receive the sanction of the Government, if referred to them. 26. Claims of Petty Nature. Competent authorities, as defined in Passage Regulations, 1980, may sanction, in consultation with their Financial Advisers, travelling daims including use of warrants and conveyance of stores and credit notes for amounts not exceeding one thousand rupees in any case, which in their opinion would ordinarily be sanctioned by the Government, except in the following cases:- a. Over-issue of travelling allowance and erroneous issue of warrants and credit notes due to culpable negligence which fall to be dealt with under the rules in Chapter 2.  18 b. Travel by a class higher than that allowed by the rules. c. Conveyance of baggage in excess of tonnage authorised (as distinct from conveyance of the authorised quantity of a passenger train instead of by a goods train). d. Grant of daily allowance in excess of daily rates authorised. Note: The monetary limits prescribed in this rule should not be taken as applying to the total amount of TA Claims in question, but to such portion of the claims as would otherwise have been submitted to the Government for sanction had delegation of powers not been made. 27. Issue of Store in Exceptional Cases. A Formation Commander and the Chief of the Air Staff, may, upto Rs. 500.00 sanction the issue of stores or regularise previous issues of stores in cases where issues are either not provided for at aft in the regulations or where, in the opinion of the sanctioning authority, insufficient provision is made in existing scales or rules, having regard to the special circumstances, attaching to each. The exercise of the powers is subject only to the conditions laid down in rule 25 and to the further conditions that:- a. The case is one that is unlikely to recur frequently. b. That the Financial Adviser concerned records his concurrence in the action proposed. Note:- Under this rule, issues made in error and over-issue from whatever cause, may also be regularized by the above authorities subject to the financial limits mentioned. 28. Petty Items of Recurring Expenditure. A Formation Commander and the Chief of the Air Staff may, in accordance with the general provisions of these rules, sanction petty items of recurring expenditure upto an aggregate annual limit of Rs. 2,000.00 and in any individual case upto a limit of Rs. 200.00 per annum subject to the further condition that expenditure is sanctioned on subjects covered by these rules (see rule 29). 29. Expenditure that may not be sanctioned a. No sanction may be given by an officer possessing financial powers which will involve expenditure from the budget grant of any future year, except as separately provided for in the Regulations for the MES and in respect of temporary establishments or labour in excess of fixed scales, workmen and temporary establishments or labour referred to in rule 11. b. Nothing in these rules shall be held to authorise as officer possessing financial powers to sanction the employment of temporary establishments.  19 or labour in excess of fixed scale:- (1) To sanction a temporary increase to the clerical establishment of his own office or that of any member of his staff. Such temporary increases shall require the sanction of the next higher competent financial authority. (2) To sanction temporary establishment, required for more than six months (except as provided for in the Regulations for the MES and in ride 15). This requires the sanction of the next higher CFA but the employment of temporary establishment for a period of more than two years of the creation of a temporary post, on more than the Basic Pay Scales 1 and % requires the sane government. Note:- The provision of sub-rule (2), clause b ibid shall not be applicable to the sanctions issued under Rule 9 b.”. c. Further, nothing in these rules shall be held to a~t~o?n-e an officer to:- - (1) Sanction expenditure in excess of fixed annual allotments. (2) Sanction expenditure which is liable to establish a new ride or practice involving further expenditure in the future, eg, admit unauthorised persons to treatment in a military hospital, transfar an office from the plains to hills. (3) Sanction a pension in excess of the amount admissible under rule. (4) Sanction an advance or loan not authorised by rules. (5) Authorise the payment to Government servants of any remunera- tion or allowance to which they are not entitled under ordinary rules. (6) Sanction the provision of new kinds and patterns of furniture. 30. Abandonment of Revenue and Expenditure. No order involving abandonment of revenue for which credit has been taken in the budget shall be issued and no expenditure which has not been provided for in the budget or, if provided in the budget has not been duly sanctioned, shall be authorised without the concurrence of the Financial Adviser concerned. 31. Expenditure Against Allotment a. The authorities to whom allotments are made shall watch progress of expenditure and ensure that it does not exceed allotment. To achieve this object the primary controlling authorities shall maintain a complete record of disbursement & and commitments against allotments in the form prescribed in Annex C. MAG shall render monthly statements in respect of static units only. showing the amount compiled in accounts against allotments. When actual disclose any tendency to excessive  20 expenditure primary controlling authorities win take steps to regulate expenditure so as to keep it within the grant. Where it may not be possible to restrict expenditure within allotment a report asking for supplementary allotment will be submitted, with full reasons, to the next higher authority. The latter authority will sanction the additional grant asked for from the reserve held by him or from surrenders reported to him. Where no reserve or no surrenders received he will refer the case to the central controlling authority who will take all further action for making additional allotment and procurement of funds in consultation with his Financial Adviser. On the other hand, if savings are anticipated the primary controlling authority will report the fact to the next higher authority, giving reasons for surrender and stating the amount surrendered. The surround of excess allotments at the earliest possible date is ttant ste it will enable the excess to be diverted to meet shortages in the grants under other heads. b. Appropriate entries will be made in the budget allotments register (Annex C). c. The intermediate controlling authority shall keep a constant watch on the progress of expenditure as shown in the monthly statement received from the Accounts Office and shall:- (1) Draw the attention of the primary controlling authority concerned to any indication derived from his scrutiny or from his knowledge of future, developments, of either a danger of overspending a particular allotment or excessive allotment under any head. (2) Review the position of his allotments every month with the object of deciding whether any sums can be surrendered from his reserves, and notify all surrenders to central controlling authorities. d. If on the other hand his reserve under any particular control heads is exhausted and he has not been able to meet demands for supplement ary allotments under that head to the extent accepted by him he may either re-appropriate funds from his reserve under another control head or failing that, submit an application giving full particulars and reasons for the necessary supplementary allotment. All surrenders and supplementary allotments, whether resulting from re-appropriation or otherwise, will be duly entered in his budget allotments register. Re-appropriations will be reported monthly to the Service Headquarters controlling authority conceived. The central controlling authority shall review the position every month on the basis of actual expenditure reported by MAG, intermediate controlling authority and such other factors as might be known to them. Where additional allotment is asked for they will do so either from the reserve held by them or from  21 the surrenders reported to them. If these sources are exhausted additional allotments will be made by Service Headquarters after obtaining proper sanction. 32. Estimates of Operational Expenditure, a. When operation or important special services involving the expenditure or large sums take place, the Ministry of Defence shall at once report the fact to the Additional Secretary, Military Finance (ASMF), together with an assessment of the probable duration of the operations; and shall supply that authority as promptly as possible, with a scheme giving in detail the composition and strength of the force; the conditions of service and concessions applicable to troops 1~ non-combatants (enrolled and civilians) to be employed and such other particulars as may be necessary. b. Copies of this scheme as soon as it has received the sanction of Government shall be furnished by the Ministry of Defence to the ASMF for communication to all controllers of accounts and it will form the recognised basis of estimate and audit by the Ministry of Finance and its officers. All subsequent changes which may materially affect expenditure shall promptly be communicated to the ASMF and the controllers and others concerned. The ASMF shall provide ways and means and shall see that the sanctioned appropriations are not exceeded. It is to be clearly understood, in questions of this nature, that the primary responsibility for expenditure on field operations and similar services rests with military and air force authorities. It is for them to see that in the at most economy is observed in expenditure in the field, as the case may be, at the base and in the supplies necessary for the requirements of the forces concerned. Subject to the above considerations, the general rules in these regulations as to the exercise of financial powers during peace shall apply equally during war or when special operations are undertaken. 33. Financial Powers Under Civil Service Regulations. The officers mentioned below shall exercise the powers or part of the powers of a Local Government under the Civil Service Regulations to the extent specified in the table below:-- TABLE Officers Powers a. Formation Commande Full powers of a Local Government except under chapter XXXVIII of the Civil Service b. Director of Personnel, Regulations in respect of individuals under their Air Force. orders (excluding the personnel of the MES and those employed at Service Headquarters, who' are not appointed directly by the Government  22 provided that wherein the CSR powers are conferred on Provincial Government only, such powers shall be exercised only by the Federal Government. c. E-in-C. Full powers of a Local Government except those under Chapter XXXVIII and Article 361A of the CSR which shall be exercised by the President only, in respect of individuals under his orders (excluding regular General Headquarters Staff) who are not appointed directly by the Government, provided that wherein the CSR, powers are conferred on Provincial Government only, such powers shall be exercised by the Federal Government. As no subordinate authorities under the administrative control of E-in-C have so far been recognised as heads of departments under the CSR, powers under Articles 89, 147, 177, 178 (b), 253, 254, 321, 514 (a), 520 (iii) and 763, Wid, shall not be re-delegated. d. CAO. Powers under Chapters V and VI and Articles 459 of the CSR in respect of subordinates placed in basic pay scales 1 to 16, who are employed in GHQ and Air HQ. e. MAG. Powers under Article 459 of the CSR, in respect of subordinates placed in basic pay scales 1 to 16 and who are employed in establishment under his control. 34. Whole Time of a Government Servant. Unless, in any case, it is otherwise distinctly provided, the whole time of a Government servant is at the disposal of the Government which pays him, and he may be employed in any manner required by competent authority without having a claim for additional remuneration, whether the services required of him are such as would ordinarily be remunerated from general revenues or from a local fund. 35. Fees and Honoraria a. A Government servant may be permitted by the general or special order of a competent authority, if it is satisfied that this can be done without detriment to his official duties or responsibilities, to perform a specified service or series of services for a private person or body or for a public body administering a local fund eind to receive as remuneration therefore, if the service is material a non-recurring or a recur ring fee. No Government servant shall undertake such work without first obtaining the sanction of the competent authority who will,  23 unless the Government servant is on leave, certify that the work can be undertaken without detriment to his official duties and responsibilities. b. A Government servant, may be granted an honorarium from general revenues as remuneration for work performed which is exceptional in character and either so laborious or of such special merit as to justify a special reward. This test of exceptional merit shall always strictly be applied. Except when special reasons, which should be recorded in writing, exist for a departure from this provision, an honorarium shall not be granted unless the work has been undertaken with the previous consent of the sanctioning authority and its amount has been settled in advance. c. For both fees and honoraria, the sanctioning authorities shall record in writing that due regard has been paid to the general principle enunciated in rule 38 and will also record the reasons which in his opinion, justify the grant of the extra remuneration. The amount of an honorarium or fee shall be fixed with due regard to the value of the service in return for which it is given. d. Any Government servant shall be eligible to receive without special permission:- (1) The premium awarded for an essay or plan in public competition. (2) Any reward offered for the arrest of a criminal, or for information or special service in connection with the administration in of justice. (3) Any reward payable in accordance with the provisions of any Act or Regulation or Rules framed thereunder. (4) Any reward sanctioned for services in connection with the administration of the customs and excise laws. (5) Any fees payable to a Government servant for duties which he is required to perform in his official capacity under any special or local law or by order of Government. e. A Government servant whose duties involve the carrying out of scientific or technical research shall not apply for or obtain, or cause or permit any other person to apply for or obtain, a patent for an invention made by such Government servant save with the permission of the Government and then only on such conditions as he may impose. f. Unless the Government by special order otherwise directs, one-third of any fee including a fee received by a Government servant for giving expert evidence before a court of law, in excess of Rs. 50.00 or, if  24 a recurring fee of Rs.50.00 in one financial year, paid to a Government servant for work undertaken by him for a private or public body or for a private person shall be credited to general revenues. In other words, if any fee exceeds Rs. 50.00 non-recurring, or Rs. 50.00 in a financial year recurring, one-third of the total amount payable will be credited to general revenues, provided that the amount retained by the Government servant concerned will not, merely owing to the operation of this rule, be reduced below Rs. 50.00 if non-recurring, or Rs. 50.00 a year, if recurring. In applying this rule non-recurring fees shall be dealt with separately from recurring fees. Note 1. This rule does not apply to fees received by Government servants from a regimental fund or from a university or other examining body in return for their services as examiners., to fees of any kind received by medical and veterinary officers in military employ or to payments for services of a social nature rendered to a club or similar organization of the Government servant's fellow employees as distinct from services rendered on a commercial basis to a private individual or corporation. 2. The authority competent to sanction the acceptance by a govern ment servant of any fee whether recurring or non-recurring shall report the matter to the Audit Officer concerned and realize the Government share, if any. g. Subject to the provisions of sub rule f above, when a fee is paid for work done by a Government servant during such time as would otherwise be spent in the performance of official duties, the fee shall be credited to general revenues provided that a competent authority, for special reasons which shall be recorded, may direct that whole or any part of it may be paid to the Government servant. h. The MGO shall be the competent authority for the purpose of this rule, in respect of all civil and military personnel employed in Inspectorates of Armaments, Vehicles and Engineering Equipment, Electronics and Instruments, and Stores and Clothing, EME Workshops and Installations and Ordnance Depots. The MAG is the competent authority in respect of personnel employed in Military Accounts Department. These officers are authorised to sanction an honorarium up to a maximum of Rs. 500.00 in each case in respect of personnel under their orders who are not appointed directly by the Government of Pakistan and who are not employed in the MGO Branch at General Headquarters. The Chief of the Army Staff shall be the competent authority in respect of all civilians except those employed in Military Accounts Department, and army personnel employed in formations up to a maximum of Rs. 1,0001- each case. All other cases shall be referred for the orders of the Government.  25 36. Cheques. The following general rules, affecting cheques, are prescribed, namely:-- a. Cheques are payable at any time within three months after the month of issue and to ensure payment after that period, a fresh cheque should be obtained by surrender of the un-cashed cheque. b. Cheques drawn in favour of a Government servant must be made payable "to order" only. Those drawn in payment of personal dues shall, as a general rule, be crossed but an uncrossed cheque may be issued on written request at the risk of the payee. In the case of personal claims of civilian gazetted servants the payment shall be made by crossed cheque. Those drawn in favour of persons not in Government employ may be made payable to "bearer" when the issue in these terms is requested. No advice of the issue of a cheque is necessary. The amount of all military cheques should be expressed in figures and words (in words for the amount of rupees only). c. (1) Cheques drawn in favour of Government officers and departments in settlement of Government dues should always be crossed 'A/C payee only not negotiable'. (2) Unless it is inconvenient to the payee, all cheques should be crossed, crossing being done by adding the words "A/C payee only" instead of the general crossing "& W.' All cheques in favour of Government officers will if sent by post, be registered. In the case of cheques in favour of private individuals, they in should be delivered either in person or through a Government officer; when it is necessary to sent such cheques by post, they will be sent by registered post acknowledgement due, and a declaration should be obtained from the payee in writing that he accepts the risks involved. d. In the case of units /formations, cheques for amounts due will be crossed and marked "A/C payee only" and together with PAF (CMA) 223 sent direct to the Bank or Treasury by the controller of accounts for credit to unit's or formation's current accounts. At the same time, a detailed statement will be sent to the unit or the formation concerned. For this purpose all units and the formations in question should open a current account with the State Bank of Pakistan or National Bank of Pakistan where such bank exists, otherwise in a local treasury. e. The supply of cheque books, for the purpose of operating bank account will be made by the Bank itself but in respect of personal deposit account with civil treasuries, cheque books should be obtained from civil Accountant General. f. In no case should payment be demanded from bankers, and expenses 26  incurred for the purpose of drawing cash until and intimation of the receipt of the cheque and credit of its value to the account concerned, is received from the Bank or Treasury except when there is sufficient credit in the particular fund account. The intimation slip issued by the Military Accounts Department is no authority for either drawing cash or posting and completing ledger accounts in advance. g. When claims are submitted to Controllers of Accounts for cheques to be issued which have merely to be passed on to the creditors, the memorandum forwarding the claim should dearly indicate "Forward cheques direct to......... The Controller of Accounts will then forward the cheque direct to the firm or person whose bill is to be settled and intimate to the unit or formation that this has been done. h. In the case of units and formations which are located in a station where there is no local branches of the State Bank of Pakistan or the National Bank of Pakistan or a civil Treasury, the above rule would not apply and cheques should, therefore, be sent to them direct. j. With the exception of local payments for less than Rs. 10.00 and out station payments less than RS. 100/- in value in each case, which should be made in cash, all payments must be made by cheque. k. All bills for petty works or supplies on Government Military Farms up to a limit of Rs.25.00 may be paid in cash and not by cheques at such farms as may be approved by the Director, Remount, Veterinary and Farms. Note: 1. In the case of military farms, payment in excess of Rs. 75.00 may be made in cash instead of by cheque for the purchase of fodder, dairy produce or stores, cattle, etc, from the local petty dealers or from villages situated at considerable distances from headquarters and when it is not possible to issue a cheque for such purchases, the assistant Director or Deputy Director concerned being the deciding authority as to whether payment should be made by cheque or cash. 2. In the case of the Remounts Wing of Remount, Veterinary and Farms Corps local payments for the purchase of animals may be made in cash at the option of the purchasing officer. l. Cheque books must be kept under lock and key in the personal custody of the drawing officer who, when relieved, will take a receipt for the number of blank cheques made over to the relieving officer, whose specimen signatures should be forwarded to the bank/treasury officer concerned by the relieved officer.  27 m. The loss of a cheque book or blank cheque forms should be notified promptly to the bank/treasury officer with whom the disbursing officer concerned has a drawing account. Every officer should notify to the bank/treasury upon which he draws the number of each cheque book as he brings it into use. n. When an officer sends a cheque or Government draft to a bank/treasury not for cash payment, but to be credited in the bank/treasury accounts, he must endorse it as follow: "Place the amount to credit of Government Military receipt". o. Cheque drawn on the bank or any of its branches should be addressed to the bank itself and not to any officer thereof, eg, National Bank of Pakistan, Karachi. p. If a Disbursing Officer is informed that a cheque drawn by him has been lost he will address the bank/treasury officer drawn on and forward the following certificates for completion and return:- "Certified that cheque No______________ dated ______________________ for Rs-________ reported by the______________________to have been drawn by him on this bank/treasury in favour of _____________________has not been paid, and will not be paid if presented hereafter". Bank/Treasury,_______________________ Bank/Treasury Officer. The ________ 19". Note: If the cheque has not been cashed, the bank/treasury officer will sign and return the certificate, and the Disbursing Officer will then cancel the original cheque and a fresh cheque may be issued. q. Alterations in cheques should be attested by the full signature of the Drawing Officer and not by initials only. r. If a cheque is issued by Government in payment of any sum due by Government, and that cheque is honoured on presentation to Govern merit's bankers, payment shall be deemed to he made if:- (1) The cheque is handed over to the payee or his authorised messenger, on the date it is so handed over. (2) It is posted to the payee on the date when the cover containing it is put into the post. Note: Cheques marked as NOT payable before a certain date should NOT be charged to the account until the date on which they become payable.  28 (3) The rule applies mutatis mutandis to a cheque in payment of Government dues or in settlement of other transaction received and accepted in accordance with provision of FR Vol. II (Army and Air Force). s. Unless otherwise specially sanctioned, an officer is entitled to one cheque only in payment of his salary bill. This cheque will be free of premium and will be payable on any bank/treasury in Pakistan. No change in the bank/treasury of payment will be allowed more often than half-yearly, except in special circumstances. Payments of all sums due to them on their personal account may be made only to the officers themselves or at their written request or order to a wen known banker or agent. Exception. Cheques in payment of salary and payable on any bank/ treasury located in a PAF Station may be issued free of premium to officers of the PAR t. PAFA-35 (pay bill) need not be submitted through a banker or agent when an officer requires his pay and allowances to be remitted to them provided he informs the Controller of Accounts concerned, through such bankers or agent of his wishes in the matter and endorses the pay bill each month as follows:- "Pay to.....................”  29 CHAPTER 2 - LOSSES, WASTAGE AND DAMAGE TO PUBLIC PROPERTY - PROCEDURE AND POWERS TO WRITE OFF 37. General Rules for Observance a. All losses, whether of public money or of stores, shall be subjected to a preliminary investigation by the officer in whose charge they were, to ascertain the cause of the loss and the amount involved. For the purpose of the procedure to be followed thereafter losses are classified as under: - (1) Losses of stores. (2) Losses of public money. b. When an investigation into a case of loss due to theft, fraud or neglect discloses a defect of system and when irrecoverable debts of units are attributable to that cause, a report shall be made to the Government through the usual channels and the Controller of Accounts concerned together with a recommendation for rectifying the defect. Petty defalcations or petty thefts need not be reported. c. The monetary limits of sanction specified refer to each separate case of loss and it shall not be permissible to sub-divide a case of loss with the object of bringing the amount within the financial powers of the authority dealing with it (see also rule 19). d. In regard to courts of inquiry, see AR Instruction 334. If an Audit Officer is not satisfied with the composition of a Court of Inquiry, the matter will be brought to the notice of the formation Commander. e. The value of such losses shall be checked by the audit authorities before action is taken for their regularization. 38. Losses of Stores a. These are classified as under,: - (1) In base and station supply depots. (2) In all other cases. b. Losses of stores in. base and Station Supply Depots. (1) Procedure. When stores are lost, destroyed, found to be deficient through wastage or otherwise, or damaged by fire or otherwise, the storekeeper concerned shall personally be responsible that an immediate report is made to the officer commanding. The latter  30 shall investigate the cause of the loss, the amount involved; and the circumstances of the case. He shall also report the occurrence to the officer commanding the station. The officer commanding the station shall himself carry out an investigation or assemble a board of officers for the purpose if he considers it necessary. The results of this investigation shall be communicated to the CFA through the usual channels for further action as laid down in sub-rule (a) and (b) below:- (a) If the investigation shows that the loss is not due to theft, fraud or neglect, it shall be written off by, the CRA in consultation with his financial adviser. (b) If it is decided that the loss is due to theft, fraud or neglect, the CRA shall in consultation with his Financial Adviser, according to the circumstance of the case take action as under:- i. If the persons responsible are not Governments servants, the CFA may write off the entire loss for reasons to be recorded in writing. He may allow, but shall7Mornpel the individual or individuals concerned to make good the loss in whole or in part. If the loss is made good in part, he may sanction the write off of the balance for reasons to be Recorded in writing. He may, with the sanction of the com petent authority, institute legal proceedings against g, the persons responsible in a Court of low in accordance with the procedure laid down in respective service regulations. ii. If the persons responsible are civilian Government servants, the WA may write off the entire loss for reasons to be recorded in writing. He may allow, but shall not compel, the individual or Individuals concerned to make good the loss in whole or in part. If the loss is made good in part, he may sanction the write off the balance for reasons to be recorded in writing. He may take departmental action against the individuals responsible or in cases where such action requires the orders of a higher authority, submit the case for orders together with his recommendation. He may 'llwe sanction of the competent authority, institute legal proceedings against the persons responsible in court of law in accordance with the procedure laid down in the respective regulations. iii If the persons responsible are subject to military law,  31 the CFA may write off the entire loss for reasons to be recorded in writing. He may allow, but cannot compel, the individual or individuals concerned to make good the loss in whole or in part. If the loss is made good in part, he may sanction the write off the balance for reasons to be recorded in writing. He may initiate appropriate action to effect recovery in whole or in part from the pay of the individual or individuals responsible, as penal deductions under the Pakistan Army Act, 1952 (XXXIX of 1952), or, as the case may be stoppages under the Pakistan Air Force Act, 1953 (V1 of 1953). He may take or initiate disciplinary action against the individual or individuals responsible. Any one or more of the above courses of action may, at the discretion of the competent authority, be taken against the persons responsible. (2) Write off Power. The financial powers of officer In respect of losses referred in this rule shall be as specified below: S/No Officers Losses Not Due Losses Due to to Theft, Fraud Theft, Fraud or Neclects Neglects (a) Service Chief Rs.500,000/- Rs 100,000/- (b) QMG Above Rs. 25,000/- 5,000/- up to Rs.1,00,000/- (in consultation with FA(Army) (c) Corps Commander Rs.25,000.00 Rs. 5,000.00 (d) Divisional Commander/ Rs. 10,000.00 Rs.2,000.00 Force Commander Northern Area[ Independent Brigade Com- mander (e) Brigade/Log Area Rs. 5,000.00 Rs. 500.00 Commander (f) ADS&TICO S&T Rs.2,000.00 Rs Nil Battalion (Lt Col)  32 (g) OC Supply Rs. 2,000.00 Rs. Nil Depots/HQ supply coy (Lt Col) (h) OC Supply Rs. 250.00 Rs. Nil Depots/Petrol Depots/Petrol Contract Platoon, (Maj and below) c. Losses of Stores in All Other Cases (1) These losses shall be investigated by the commanding officer of the individual immediately in charge of the stores lost. If his investigation shows that the loss is not due to theft, fraud or neglect he shall submit the case to the competent financial authority. If his investigation show that the loss is due to theft, fraud or neglect he shall submit the case to the formation commander or the Chief of the Air Staff or to the pre- scribed authority in the case of departments see rule 40. This authority shall arrange for the assembly of a court of inquiry to investigate the reported loss unless the loss involved is Rs. 5,000/- or less in which case the holding of a court of inquiry may, at its discretion, be dispensed with. In the case of ordnance stores damaged or rendered unserviceable through supposed neglect on the part of a unit, the court shall be constituted as laid down in AR(I). The case shall then be submitted to the CFA. The CFA shall in consultation with his Financial Adviser, take action as laid down in rule 38b. (2) Powers to Write Off. The Financial powers of officers in respect of losses referred to in the preceding sub-rule shall be as specified below:- S/No Officers Losses Not Due Losses Due to to Theft, Fraud Theft, Fraud or Neclects Neglects Rs. Rs. (a) Units and Formations other than those detailed in serials (b) to (h) below