Budget Rules 2003

February 17,

[SBNP] DISTRICT GOVERNMENT AND TEHSIL MUNICIPAL ADMINISTRATION (BUDGET) RULES, 2002 In exercise of the powers conferred under Section 191(1), of the [SBNP] Local Government Ordinance, 2001 (Ordinance No ( ) of 2001), the Governor of [SBNP] is pleased to make the following RulesPART I PRELIMINARY Short title, applicability and commencement.(1) These Rules may be called the [SBNP] District Government and Tehsil Municipal Administration (Budget) Rules, 2002. (2) These shall apply to all local Administrations and Union Councils. (3) They shall come into force at once. Definitions.(1) In these Rules, unless there is anything repugnant in the subject or context(i) (ii) (iii) Accounts Officer means the head of the local government Accounts Office; actuals means the actual figures of receipts or expenditure relating to a financial year; administrative approval means the concurrence and formal acceptance of the Budget and Development Committee to the incurring of the expenditure proposed in the project proposal and amounts to an order to execute the proposal subject to the approval by the Council; Annual Budget Statement" means the statement of estimated receipts into, the estimated expenditure from, the local government fund required to be laid before the Council before the commencement of that year; Annual Development Programme means the document submitted alongwith the Annual Budget Statement, which includes the details of development projects included in the budget; appropriation means an allocation of funds to an office on the basis of the Schedule of Authorized Expenditure; governments except Union

(iv)

(v)

(vi)

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February 17,

(vii)

Budget means a statement of the estimated receipts and expenditure of the local government for a financial year;

(viii) Budget Calendar means the calendar given in the Second Schedule; (ix) (x) Budget Document means the documents specified in Part X of Volume I of the Rules; Budget Estimate for a financial year, means in relation to expenditure, the expenditure proposed for that year, and in relation to receipts, the receipts expected to be realized during that year; Budget Year or Financial Year means the period from July 1st to June 30, both days inclusive; Capital expenditure means the expenditure met from capital receipts;

(xi) (xii)

(xiii) Capital receipts means receipts from sources other than revenue and includes(a) the disposal of capital assets; (b) (c) (d) the sale of investments; loans; and advances and deposits.

(xiv) CCB means a Citizen Community Board as defined in the Ordinance; (xv) "CCB official" means such official of the District Government or Tehsil Municipal Administration as the case may be, to which the project proposals are submitted by the CCBs. For the District Government it means the EDO Community Development while for the Tehsil and Town Municipal Administration it means the Tehsil or Town Officer (Planning) as the case may be;

(xvi) Charged expenditure means such items of expenditure as are specified in the Ordinance, which are not subject to vote of the Council; (xvii) "Charter" means the constitution of a CCB, to be subscribed and signed by the founder members, as herein provided. It includes the purposes, aims, and the mode of functioning of a CCB;

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February 17,

(xviii) Collecting Officer means the officer who is responsible for estimation and realization of receipts from the area within his jurisdiction designated by the Head of Offices for the offices under his administrative control; (xix) Current Budget means the sum of approved estimates of the current expenditure for a financial year; (xx) Current expenditure means development expenditure; expenditure that is not

(xxi) Demand for Grant means the proposal made to the Council on the recommendation of the Nazim for withdrawal of a certain sum out of the local government fund; (xxii) Development expenditure means any expenditure on development projects as defined in Rule 30 or any expenditure on new construction, whether of entirely new works or additions and alterations to existing works. It also includes all repairs to newly purchased or previously abandoned buildings or works required for bringing them into use and means expenditure on operations undertaken to maintain in proper condition buildings and works in ordinary use; (xxiii) Development Budget means the sum of approved estimates of development expenditure for a financial year; (xxiv) Drawing and Disbursing Officer means the officer who prepares estimates of expenditure and actually incurs expenditure in respect of the offices of which he is the Drawing and Disbursing Officer as appointed by the respective Head of Offices under his administrative control; (xxv) Form means a form prescribed under these Rules; (xxvi) "Founder Member" constitute the signatories to the Charter of a CCB which has been submitted for registration; (xxvii) Function means an element used in the Chart of Accounts issued by the Auditor General of Pakistan, which provides information on particular economic activities; Grant means the amount granted by the Council, in respect of a Demand for Grant as specified in the Schedule of Authorized Expenditure;

(xxviii)

(xxix) "Member of CCB" means a person whose name has been included in the Register of Members;

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February 17,

(xxx) Object means a Chart of Accounts element used to classify the nature of expenditure e.g. salaries, travel, transport etc; (xxxi) Ordinance means the [SBNP] Local Government Ordinance, 2001 (Ordinance No( ) of 2001); (xxxii) (xxxiii) Part means a part of these Rules; "Project Proposal" means the project proposal, which is submitted by a CCB to the concerned CCB official for approval by the Council; Re-appropriation means the transfer of savings in the appropriations of one or more units of appropriations to meet excess expenditure anticipated under another such unit; receipt means the cash collected by a local government; "Register of CCBs" means the register to be kept at the offices of, and maintained by, the Registration Authority wherein the names, addresses, and specified particulars of the registered CCBs and their Executive members shall be recorded; "Register of members" means the register to be kept at the designated office of a CCB, wherein the names, addresses and other specified information relating to all its members are recorded; "Registration Authority" means the District Officer (Registration), who is declared as such by a District Government; "Responsible person" means(a) (b) the chairman of a CCB; the secretary of a CCB; and

(xxxiv)

(xxxv) (xxxvi)

(xxxvii)

(xxxviii)

(xxxix)

(c) any other member of a CCB who is, in writing, declared as such by any of the persons mentioned in a or b above. (xl) Revenue receipts means the receipts from tax and non-tax revenues. The non-tax receipts include interest, dividends, fines etc realized by a local government. Revised estimates means the estimate of the probable receipts or expenditure, for a financial year, framed, in the

(xli)

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February 17,

course of that year, with reference to the transactions already recorded; (xlii) "Schedule" means a schedule to these Rules; (xliii) Schedule of Authorized Expenditure means the schedule prepared, after the approval by the Council of the Annual Budget Statement or Supplementary Budget in respect of a financial year and authenticated by the Nazim; (xliv) "Section" means a section of the Ordinance; and (xlv) Supplementary Budget Statement means the statement to be laid before the Council showing the amount of the additional expenditure estimated to be required during a financial year, over and above the expenditure already authorized, for that year; (xlvi) Supplementary Grant for a financial year means an amount provided in addition to the original Grant or appropriation approved by the Council; (xlvii) Surrender means an amount included in the budget that is given back, as it shall not be spent in the financial year by the office; (xlviii) Technical Sanction is the sanction to a properly detailed estimate of cost of a work of construction or repair; and

(xlix) Voted expenditure means expenditure that is submitted to the vote of the Council. (2) Terms and expressions used but not defined in these Rules shall have the same meaning as defined in the Ordinance.

Budget Rules 2003

February 17,

PART II FUNCTIONS OF THE OFFICERS RELATING TO BUDGET Functions of Finance and Budget Officer.(1) The Finance and Budget Officer shall be responsible for the coordination of the budgetary process and for the consolidation and preparation of the budget documents of the local government. (2) The Finance and Budget Officer in the case of a District Government shall be the Executive District Officer (Finance and Planning). (3) The Finance and Budget Officer in the case of a Tehsil Municipal Administration shall be the Tehsil Officer (Finance). (4) The Finance and Budget Officer shall perform the following functions-

(i) issue the budget call letter after approval of the Nazim, which shall include(a) date-wise budget calendar; (b) instructions for preparing the budget; (c) forms to be used in the preparation of the budget; and (d) budget guidelines. (ii) (iii) (iv) (v) (vi) provide figures of available resources for formulation of budget; examination and scrutiny of the budget proposals; examination and scrutiny of a new expenditure; compilation and consolidation of the Budget; communication of Grants to Drawing and Disbursing Officers;

(vii) monitoring of the budget and ensuring that funds are spent as approved by the Council; (viii) examination and scrutiny of proposals for Re-appropriation and Supplementary Grants; (ix) provide financial information to the Council relating to local government; (x) (xi) submit reports on budgetary performance; monitor the receipts and expenditure of the local government; and
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(xii) provide such other supervision and administration as may be required from time to time in connection with or ancillary to any of the foregoing aspects of the budgetary process. Head of Offices.(1) theIn relation to the District Government, the Head of Offices means (i) District Coordination Officer for his office and the office of the Zila Nazim only; (ii) (iii) Naib Zila Nazim for the Zila Council Secretariat; and Executive District Officers (EDOs).

(2) In relation to Tehsil Municipal Administration, the Head of Offices means(i) Tehsil Municipal Officer (TMO) for his office and the office of the Tehsil Nazim; (ii) (iii) (3) Naib Tehsil Nazim for the Tehsil Council Secretariat; and Tehsil Officers.

The Head of Offices is responsible for(i) all matters relating to the budget for the offices under his administrative control; (ii) ensuring strict financial control;

(iii) ensuring observance of all relevant financial rules and regulations both by his own office and by sub-ordinate disbursing offices; (iv) ensuring that the total expenditure is kept within the limits of authorized appropriation; (v) ensuring that the funds allotted are spent on the activities for which the money was provided; (vi) explaining any instance of excess or financial irregularity that may be brought to notice as a result of audit scrutiny or otherwise; (vii) ensuring that adequate provisions exist for systematic internal checks to prevent and detect errors and irregularities in the financial proceedings of his subordinate offices;

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February 17,

(viii) ensuring that the internal controls are effectively applied; (ix) guarding against waste and loss of public money;

(x) ensuring that satisfactory arrangements exist for systematic and proper maintenance of office accounts and other ancillary record; (xi) ensuring that the auditors are afforded all reasonable facilities in the discharge of their functions and furnished with the fullest possible information for which they may ask; (xii) ensuring that no such information or any books or other documents to which the Auditor General of Pakistan has a statutory right of access may be withheld; and (xiii) coordination with the Finance and Budget Officer. 5. Collecting Officer (CO).(1) (i) (ii) of receipts; and (iii) The functions of the Collecting Officer arepreparing the estimates of receipts under his jurisdiction; all matters relating to estimation, realization, and deposits coordination with the concerned higher level officials.

(2) The Collecting Officer shall be designated as such by the respective Head of Offices for the offices under his administrative control. 6. Drawing and Disbursing Officer (DDO).(1) The functions of the Drawing and Disbursing Officer are(i) preparation of the estimates of expenditure for the offices under his jurisdiction; (ii) incurring of expenditure as per rules; with the concerned higher level

(iii) coordination officials; and (iv)

monitoring his budget.

(2) The Drawing and Disbursing Officer shall be designated as such by the respective Head of Offices under his administrative control.

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February 17,

7. Planning Officer (PO).(1) Planning Officer means in relation to(i) District Government, the Executive District Officer (Finance and Planning); and (ii) (2) Tehsil Municipal Administration, the Tehsil Officer (Planning).

The functions of the Planning Officer are(i) overall government; (ii) (iii) planning of development works of the local

monitoring of development projects; and consolidation of Annual Development Programme.

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February 17,

PART III BUDGET CLASSIFICATION AND CALL LETTER 8. Budget.The budget is a statement of receipts and expenditure during a financial year of a local government and thus reflects the local government policies, priorities, financial strategy and operational plans in financial terms. The Nazim shall ensure that the needs of the disadvantaged groups are reflected in the priorities and gender issues are adequately addressed. 9. Budget Classification.(1) The Budget shall be prepared in accordance with Chart of Classification of accounts issued by the Auditor General of Pakistan. (2) The expenditure shall be classified into Development or Current expenditure. (3) The Development budget shall be divided into two parts, namely(i) (ii) Citizen Community Board Development budget; and local government development (Non-CCB) budget.

(4) The receipts shall be classified as follows(i) (ii) (iii) major head; minor head; and detailed receipt head.

(5) Expenditure shall be classified as follows(i) (ii) function classification; and object classification.

(6) Functional classification shall be as follows(i) (ii) (iii) major function; minor function; and detailed function.

(7) Object classification shall be as follows-

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February 17,

(i)

major object; (ii) minor object; and (iii) detailed object.

(8) The budget of the Council and its secretariat shall be reflected separately in the Budget. A separate Drawing and Disbursing Officer shall be designated for the Council budget. 10. (1) (2) Public Account.Every local government shall maintain a Public Account. The estimates relating to Public Account shall be prepared by the Finance and Budget Officer on receipt of the figures from the concerned offices. (3) The withdrawals from the Public Account shall be for the purpose for which funds were deposited. 11. Budget call letter.-

The budget call letter shall be finalized after consultation with the relevant stakeholders. Explanation: The expression stakeholders include Councils, elected representatives, general public, women's organization, private sector, Citizen Community Boards, District Mushavirat Committee, NonGovernmental Organizations, Community Based Organizations, and other organizations. The priorities identified by a Council shall be forwarded to the Nazims as under(i) (ii) (iii) (iv) (3) the respective Council of the concerned local government may provide their requirements to the Nazim; the Tehsil Councils and Union Councils may provide their requirements relating to district functions to the Zila Nazim; the Zila Council and Union Councils may provide their requirements to Tehsil Nazim relating to Tehsil functions; and the Zila Council and Tehsil Councils may provide requirements to Union Nazim relating to Union functions. their

The Finance and Budget Officer shall consolidate the information received from the stakeholders including the priorities identified by the Councils and the local government offices in the draft budget call letter and submit it to the Nazim for approval.

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(4)

After approval by the Nazim, the Finance and Budget Officer shall issue to each Head of Offices the budget call letter, including the budget calendar. The Budget and Finance Officer shall issue the classification of projects and other guidelines to the CCBs on approval of the budget call letter by the Nazim. Each Head of Offices shall prepare its budget in accordance with the budget call letter approved by the Nazim. The timeframe provided in the budget calendar shall be followed by each office of the local government. Filled forms shall be submitted by the Drawing and Disbursing Officers, Collecting Officers and Heads of Offices in accordance with the timeframe specified in the budget calendar to the Finance and Budget Officer.

(5)

(6) (7) (8)

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PART IV ESTIMATES OF RECEIPTS 12. Finance and Budget Officer to supply receipt Forms to Collecting Officers.The Finance and Budget Officer shall, each year alongwith the budget call letter, supply to the Collecting Officers Forms BDR-1 to 4 relating to receipts as provided in the First Schedule, in which the estimates of receipts for the coming financial year shall be prepared. 13. Instructions to Collecting Officers.The Collecting Officers shall while preparing their estimates of receipts be guided by the following(i) estimates of receipts are prepared diligently and accurately;

(ii) in relation to revised estimates, shall take into consideration the actual receipts during the first eight months of the financial year and also consider the figures of the previous financial year; (iii) all material reasons, facts and circumstances relied upon in adopting the figures for the Revised Estimates for the current financial year shall be recorded clearly; (iv) the reasons for adopting the figures for the budget estimates of the coming financial year are clearly explained; and (v) the receipts shall cover all sources including fiscal transfers from provincial government. 14. (1) Revenue Base Review.In order to ascertain and realize the revenue potential of a local government, each Collecting Officer shall conduct a review of the revenue sources and the required information shall be prepared in Form BDR-3.

(2)

The objections and suggestions from the public and vetting by the Government shall be obtained after the taxation proposals have been discussed by the Council while considering the Draft Budget presented by the Nazim in April each year. The timeframe to be followed for finalizing the taxation proposals is specified in the budget calendar provided in the Second Schedule.

(3)

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15.

Collecting Officer to Forward Receipt Forms to Head of Offices.After duly completing the receipt forms, the Collecting Officer shall sign the same and retain one copy for record in his office, and forward the rest to the Head of Offices. The explanatory notes to the receipt forms shall be provided in Form BDR-5.

16. (1)

Head of Offices to scrutinize and consolidate estimates.On receiving the estimates of receipts from the Collecting Officer, each Head of Offices concerned shall finalize and consolidate the figures furnished by his Collecting Officers. Each Head of Offices shall prepare a note explaining any differences between(i) (ii) the revised estimates proposed for the current financial year, and the budget estimates for the current financial year; and the budget estimates proposed for the next financial year, and the revised estimates proposed for the current financial year.

(2)

(3) 17.

A copy of the duly completed forms and the explanatory note prepared in Form BDR-5 shall be forwarded to the Finance and Budget Officer. Administrative Estimates.responsibility for accuracy of Figures and

The Heads of Offices and the Collecting Officers shall be responsible for the correctness of all figures supplied to the Finance and Budget Officer. 18. Consolidation of receipts by the Finance and Budget Officer.Upon receipt by the Finance and Budget Officer of the estimates of receipts from the Heads of Offices, the Finance and Budget Officer shall consolidate such estimates. The estimates of receipts shall be incorporated in the budget documents and submitted to the Budget and Development Committee for finalization prior to submission to the Council.

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PART V ESTIMATES OF CURRENT EXPENDITURE 19. (1) Preparation of Estimates of Current expenditure.The estimates of Current Expenditure shall be prepared by Drawing and Disbursing Officers (DDOs) in accordance with the budget guidelines according to which directions may be provided by the respective Head of Offices. The estimates of expenditure shall be provided on the Forms BDC-1 to 7 relating to Current expenditure. Instructions for expenditure.preparation of estimates of Current

(2) 20.

The following guidelines shall be followed for purposes of determining the Estimates of Expenditure(i) (ii) provision for each expenditure shall be included under the appropriate function and object head; provision for any foreseeable expenditure shall be included while ensuring that each provision is restricted to the absolute minimum necessary sum; each Drawing and Disbursing Officer shall develop the most realistic and sound estimates; (iv) the estimates for each financial year shall provide only for such expenditure as are to be actually paid during the next financial year; (v) provision should not be made in the estimates for posts which it has been decided to leave unfilled; (vi) a performance incentive bonus for employees shall be included in the Budget; and (vii) the budget shall include provision for honoraria and allowances for Nazims, Naib Nazims and Councilors. 21. Submission of Estimates of expenditure Disbursing Officer to Head of Offices.by Drawing and

(iii)

After completing the forms the Drawing and Disbursing Officer (DDO) shall retain one copy for record in his office and forward the original together with an explanatory note on BDC-8 showing the reasons for his proposal to the Head of Offices.

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22. (1)

Heads of Offices to consolidate expenditure estimates.-

Each Head of Office shall develop a plan according to the priorities laid out in the budget call letter for the respective offices under his administrative control. The plan referred to in sub-rule (1) shall include all technical requirements taking into account the weaknesses of the past gaps and the proposals with detailed workings including the following on Forms BSF 1 to BSF 3(i) areas where the community can and is likely to participate and the proposed classification of projects for CCBs; (ii) the state of facilities and services already available;

(2)

(iii) problems and issues relating to the implementation of the current years budget; (iv) activities proposed for the next years Current budget;

(v) new activities proposed for the next year including staffing requirements and establishment; (vi) status of on going development projects; and

(vii) proposed sectors and projects for the next years development budget based on the technical assessment by the concerned offices. (3) Upon receipt of expenditure estimates, the Head of Offices shall review and finalize the estimates of expenditure and then send the same to Finance and Budget Officer. 23. (1) (2) Consolidation of expenditure estimates.The Finance and Budget Officer shall consolidate the estimates received from each Head of Offices. The estimates shall be submitted to the Council as part of the budget documents after finalization by the Budget and Development Committee. The current expenditure shall include the new expenditure. Other Statements.The details of budget shall include(i) Statement of investment if any as per Form BDO-1;

(3) 24.

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(ii) and

Statement of General Provident Fund as per Form BDO-2;

(iii) Statement of outstanding liabilities and loans, if any, on Form BDO-5. 25. Calculations of Establishment Charges.(1) officials. Form BDO-3 shall be used for calculating the salaries of the

(2) Form BDO-4 shall be used for calculating the allowances of the officials. (3) Forms BDO-3 and BDO-4 shall be for the internal use of the offices and shall not be submitted with any of the budget documents. 26. Conditional Grants.All conditional grants shall be budgeted and utilized in accordance with the conditions of the grant.

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PART VI STATEMENT OF NEW EXPENDITURE (CURRENT BUDGET) 27. (1) New expenditure.Expenditure on new activities shall include the recurring costs of the development projects to be completed in the next financial year and expenditure relating to new current activities. The expenditure is mainly on personnel and purchase of durable goods. The new expenditure shall be provided with the budget documents as a Statement of New Expenditure (SNE). New Current expenditure Proposals.Each Drawing and Disbursing Officer shall for the next financial year send to the Head of Offices, all proposals involving new current expenditure along with their estimates in Forms BDC-1 to 7. An explanatory note justifying the new proposals shall be provided in Form BDC-8. The details of the recurring expenditure of the development projects to be completed during the budget year, shall also be communicated by the Drawing and Disbursing Officer (DDOs) to the concerned Head of Offices. Instructions regarding new expenditure.The respective Drawing and Disbursing Officer (DDO), while preparing any proposal for new current expenditure shall ensure thatall proposals specify the; number of required personnel; rates of remuneration; and duration of employment of any proposed officials. (ii) (iii) (2) all relevant revenue implications have been described, quantified and included in the estimates of receipts; and detail of expenditure as Purchase of Durable Goods have been specified.

(2) 28. (1)

(2) (3)

29. (1) (i) (a) (b) (c)

Drawing and Disbursing Officers shall forward the estimates of new expenditure separately to the Head of Offices alongwith the current budget.

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(3)

In submitting proposals for new expenditure administrative difficulties and delays in sanctioning processes should always be borne in mind and not more should be recommended for provision in the budget than is likely to be incurred during the course of the financial year.

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PART VII DEVELOPMENT PROJECT PROCESSING 30. Development Projects.Development projects are those which are undertaken through development budget and required to be prepared on the Form BDD-4. 31. Processing of development projects.The development projects shall be processed as follows(i) (ii) identification of development project; preparation of project outline by concerned Office;

(iii) approval of development project outline by the Budget and Development Committee; (iv) preparation of detailed development project proposal;

(v) preparation of technical sanction for development projects involving works; (vi) (vii) approval by Budget and Development Committee; issuance of Administrative Approval and Technical Sanction;

(viii) inclusion in Annual Development Programme; (ix) 32. approval by Council.

Responsibilities of the Nazim relating to Development Planning.Nazim shall(i) (ii) (iii) (iv) (v) provide the vision and set the development priorities; interact with the stakeholders to assess their needs; encourage the CCBs to participate in the development activities and ensure that the CCB projects are given priority; oversee the preparation of development project proposals; as Chairman of the Budget and Development Committee, ensure that all development project proposals approved by the Budget and Development Committee are feasible, sustainable and in line with the priorities set by the Council; and

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(vi) 33. (1)

Review progress of development projects and ensure timely completion of development projects.

Identification of Development projects.The identification of development projects shall be through a bottom up planning system. (2) The detailed procedures relating to identification, approval and implementation of CCBs projects are provided in Part III of Volume II of these Rules. (3) The project proposals received during the year from various stakeholders shall be scrutinized by the concerned Head of Offices. (4) The Heads of offices shall submit the outline of new development project proposals to the Budget and Development Committee through the Planning Officer for approval and further processing. The new development projects shall be based on the detailed plans prepared by the respective Head of Offices as specified in Rule 22.

34. (1)

Approval of Non-CCB development projects by the Budget and Development Committee.The Budget and Development Committee shall review the outline of the new development project proposal received from the concerned office and give approval for the preparation of detailed development project proposals which have been cleared by the Budget and Development Committee. The concerned office after receiving the approval by the Budget and Development Committee shall initiate the process of preparing the detailed development project proposal on Form BDD-4. The detailed development project proposal on completion by Head of Offices shall be submitted to the Planning Officer. The Planning Officer shall frame a working paper on the basis of the information examining the financial, economic and environmental viability of each development project. The working paper along with a copy of the detailed proposal shall be circulated among members of the Budget and Development Committee. The Budget and Development Committee (BDC) shall review the development project proposal and its decisions shall be recorded for each development project proposal.

(2)

(3) (4)

(5) (6)

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(7)

A copy of the development project proposal approved by the Budget and Development Committee (BDC) shall be submitted to the Council for information. Administrative Approval for development projects other than CCBs .-

35.

After the Budget and Development Committee has approved the development project proposal, the District Coordination Officer (DCO) and Tehsil Municipal Officer (TMO) shall convey the Administrative Approval on behalf of the respective Budget and Development Committee. (2) Only the development projects approved by the Budget and Development Committee shall be considered for inclusion in the Annual Development Programme. Revision in Development project Proposals other than CCBs.The upward revision of cost, or a major change in the objective or scope of a development project shall require the approval of the Council. The revision within the cost approved by the Council shall be approved by the Budget and Development Committee. The Budget and Development Committee shall ensure that the objectives and scope are not altered. Completion of on-going Development project other than CCBs.An on-going development project approved by the Council shall be funded and completed as approved. 38. (1) Development projects involving works other than CCBs.The development project proposal relating to works submitted to the Budget and Development Committee for Administrative Approval shall be accompanied by a preliminary report, a rough cost estimate, preliminary plans, information to the site and other details as may be necessary to fully elucidate the proposals. The estimates and preliminary plans should be obtained from the concerned office dealing with works. For every work proposed to be carried out, except petty works and repairs a properly detailed estimate must be prepared for the sanction of the competent authority. This sanction is known as the "Technical Sanction" to the estimate. Such sanction shall only be accorded by the officials in accordance with the powers delegated to them. In cases in which it becomes apparent during the execution of the work the amount administratively approved or the amount of technical

36. (1)

(2)

37.

(2)

(3)

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sanction shall be exceeded, the approval and approval of the Council shall be obtained.

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PART VIII DEVELOPMENT BUDGET AND ANNUAL DEVELOPMENT PROGRAMME 39. (1) Annual Development Programme.The Annual Development Programme shall be a compilation of the development projects including CCB projects, approved by the Council as part of the budget. The Annual Development Programme shall be submitted as part of the budget documents. Classification of Annual Development Programme.(1) (2) The Annual Development Programme shall classify projects by sector, function and geographic location. The Annual Development Programme shall indicate new development projects and ongoing development projects separately. Development projects on which no expenditure has been incurred previously shall be termed New development projects. Development projects on which expenditure has been incurred in previous years shall be termed On-going.

(2) 40.

41. (1)

Source of funding for Annual Development Programme.Main sources of funding the new development projects shall be(i) total receipts of the local government less current expenditure, on-going expenditure of development projects and other liabilities; and (ii) financial assistance received by way of development grants from the Government.

(2)

Twenty five percent of the development budget shall be earmarked for execution through Citizen Community Boards (CCBs). The Citizen Community Board (CCB) projects shall be processed, included in the development budget and approved by the Council in accordance with Volume I and II of the Rules. Phasing of Annual Development Programme.As far as possible development projects shall be completed within the financial year. In exceptional circumstances a project may be phased over two financial years in accordance with the Rules given in Part XVII.

42. (1) (2)

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(3)

Multi-year planning shall reflect and cater for the operation and maintenance costs of completed development projects and shall ensure that such costs are considered by the Budget and Development Committee when approving development projects. Prioritizing Development Projects for Inclusion in the Annual Development Programme.For the Non-CCB (local government initiated) development projects each Head of Offices shall select development projects for inclusion in the Annual Development Programme from the development projects processed by the Budget and Development Committee pertaining to his offices and forward their details to the Planning Officer in Forms BDD-1 to 3. The development projects recommended by the Head of Offices shall be in line with the budget guidelines included in the Call letter and the detailed operational plans of the respective Offices under the administrative control of the Head of Offices. The procedure for ranking of the CCB projects is explained in Part III of Volume II of the Rules. Approval of Annual Development Programme by Budget and Development Committee.The Planning Officer shall frame a working paper on the basis of the information provided by each Head of offices. The working paper shall then be circulated among members of the Budget and Development Committee. The Budget and Development Committee shall approve the development projects to be included in the Annual Development Programme while remaining within the fiscal space available and keeping in view the detailed plans submitted by the Head of Offices. The Budget and Development Committee shall give priority to CCB projects over Non-CCB development projects. The decisions of the Budget and Development Committee shall be recorded for each development project proposal. After approval by the Budget and Development Committee, the Annual Development Programme shall be incorporated into the budget documents by the Finance and Budget Officer. The draft shall also include the Citizen Community Board projects. After approval of the budget by the Council, the approved Annual Development Programme shall be circulated to the concerned Offices by the Development and Planning Officer. The Council shall approve each development project separately.
25

43. (1)

(2) 44. (1) (2) (3)

(4) (5) (6)

(7)

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45. (1)

Monitoring Progress of Development project Execution.-

Expenditure can be incurred only on development projects for which Administrative Approval and Technical sanction (for works) has been accorded and the development project has been included in the budget and has been approved by the Council. For development projects under execution, the executing agency shall send monthly progress reports in the prescribed Form BM-5 and BM-7 to the Planning Officer and Finance and Budget Officer, and the Monitoring Committee in the first week following each month. Complaints and suggestions of the public, Monitoring Committee and officials regarding development projects shall be submitted through the Planning Officer to the Budget and Development Committee for necessary action. 46. Development project Completion.On development project completion, a project handing over report shall be submitted by the concerned Head of Offices to the Planning Officer and a copy provided to the Budget and Development Committee, Finance and Budget Officer and a copy shall be provided to the Council. 47. Post Completion.Post completion evaluation of each development projects shall be undertaken jointly by the Planning Officer in collaboration with concerned Head of Offices and a report submitted to the Council.

(2)

(3)

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February 17,

PART IX INTEGRATION OF DEVELOPMENT AND CURRENT BUDGET 48. Budget and Development Committee (BDC).-

The Budget and Development Committee shall be responsible for the preparation and consolidation of the both the Current and Development Budget of the local government. The functions of the Budget and Development Committee in relation to the Development Budget shall be as follows(i) (ii) (iii) (iv) (v) (vi) (1) approval of all development projects submitted to them by the Planning Officer; approval of development projects for inclusion in the Annual Development Programme; monitoring progress of development projects; ensure the transfer of development projects on completion from the Development to Current budget; review post completion evaluation reports; and issue directives wherever needed for removal of hurdles in the execution of development projects.

The functions of the Budget and Development Committee in relation to the Current Budget shall be(i) review and approval of the Current expenditure; (ii) review and approval of the Statement of New Expenditure (SNE) for the inclusion in the Current budget; (iii) monitoring the Current Budget during the financial year;

(iv) issue directives for removal of hurdles in the execution of the Current budget; (v) ensure that the recurring cost of completed development projects are included in the Current budget; and (vi) ensure that funds are available for recurring costs on completion of development projects. (4) The Finance and Budget Office shall serve as the Secretariat of the Budget and Development Committee.

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(5)

The composition of the District Budget and Development Committee shall be as followsZila Nazim District Coordination Officer Executive District Officers Executive District Officer (F&P) Secretary Chairman Member Members Member /

(6)

The composition of the Tehsil Budget and Development Committee shall be as followsTehsil Nazim Tehsil Municipal Officer Tehsil Officers Tehsil Officer (Finance) Chairman Member Members Member/Secretary

(7)

The District Coordination Officer (DCO) and Tehsil Municipal Officer (TMO) shall act as the Chairman of the respective Budget and Development Committee in the absence of the Chairman. The decisions in such cases shall require the approval of the Nazim. Meetings of the Budget and Development Committee.The Budget and Development Committee shall hold monthly meetings for reviewing and monitoring the budget of the current financial year. The Budget and Development Committee shall hold such meetings as may be required for the finalization of the budget for the next financial year. Transfer of Recurring Liabilities of Development Projects to Current Budget.The Heads of Offices, Development and Planning Officer and Budget and Development Committee shall ensure that(i) details of the recurring expenditure of each development project expected to be completed in the next financial year is communicated to the Finance and Budget Officer; and the recurring liability is included in the current budget and Statement of New Expenditure for the next financial year.

49. (1) (2)

50.

(ii) 51.

Directions Concerning Fiscal Space.28

Budget Rules 2003

February 17,

(1)

Fiscal Space for a financial year refers to the resources available during a financial year to a local government for implementation of its new development projects after having deducted all liabilities. In order to increase the fiscal space the local government shall(i) (ii) (iii) (iv) (v) (vi) identify new sources of revenue; detect and stop leakages of revenues from sources under their administrative control or supervision; review and, if required, adjust user charges, fee and rates etc; review establishment costs; restructure activities to maximize efficiency and effectiveness; procure timely information from the Government regarding the expected amount of local government share so that expenditure may be adjusted accordingly; and encourage local contributions in development efforts by effective utilization of funds through the Citizen Community Boards.

(2)

(vii) (3) (4)

The development program shall be formulated within the fiscal space. All estimates of the receipts as well as expenditure shall be rounded to the nearest hundred i.e. figures below 50 shall be disregarded and all figures of 50 or above shall be entered as hundred. Unspent balance from the 25% funds reserved in the current budget for Citizen Community Boards (CCBs) shall be added to the fresh allocation for Citizen Community Boards (CCBs) in the next year.

(5)

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February 17,

PART X BUDGET PRESENTATION TO THE COUNCIL 52. (1) Budget Documents.The Finance and Budget Officer shall for the Council prepare the budget documents specified below(i) (ii) (iii) (iv) (v) (vi) (vii) Budget speech of the Nazim; Annual Budget Statement; Budget Salient Features; Estimates of Receipts; Demands for Grants (Current expenditure); Demands for Grants (Development expenditure); Statement of New Expenditure;

(viii) Annual Development Programme; and (ix) (2) 53. Supplementary Budget for current year if required.

The formats of the budget documents are provided in the First Schedule, while a brief description follows. Budget Speech.The Budget Speech of the Nazim shall include the main features of the budget.

54. (1)

Annual Budget Statement.The Annual Budget Statement shall include details of receipts and expenditure. The following shall be included in the Annual Budget Statement (ABS)(i) (ii) (iii) (iv) (v) Financial Abstract; Details of Receipts; Details of expenditure; Details of Current expenditure by detailed function and major objects; Details of Public Account Receipts and Disbursement; and

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February 17,

(vi) (2) 55.

Function wise Development expenditure.

The Annual Budget Statement shall be submitted on Form ABS. Budget Salient Features (BSF).(1) The Budget Salient Features shall provide a brief description of the main features of each office and also include performance targets, service delivery facilities, policies and plans of the various offices. (2) The salient features of each office shall be provided in Form BSF-1. (3) Form BSF2. The performance targets shall be provided in

(4) The status of service delivery facilities shall be provided in Form BSF-3. 56. (1) (2) 57. Estimates of Receipts.The estimates of receipts shall be prepared and consolidated pursuant to Part IV. The estimates of receipts and other details shall be provided on Forms BDR 1 to 5. Demands for Grants (Current expenditure).(1) The demand for grants for current expenditure shall include estimates of total current expenditure and shall be prepared pursuant to Part V of Volume I. (2) The Demand for Grants (Current expenditure) and other details shall be provided in Forms BDC 1 to 8. (3) Other forms may be developed by a local government for providing additional budgetary information. 58. Demands for Grants (Development expenditure).(1) The demand for grants and appropriation for development shall include the estimate of ongoing and new development projects including Citizen Community Board (CCB) projects. It shall be prepared pursuant to Part VII, VIII and IX of Volume I. (2) The Demand for Grants (Development expenditure) and other details shall be provided in Forms BDD 1 to 3. 59. Statement of New Expenditure.31

Budget Rules 2003

February 17,

(1)

The estimates of new expenditure relating to current budget shall be provided separately as well, and prepared pursuant to Part V and VI of Volume I. The Schedules and explanatory notes relating to the Statement of New Expenditure shall be provided in Forms BDC 1 to 8. The Annual Development Programme.-

(2) 60. (1)

The Annual Development Programme shall be formulated as prescribed in Part VII, VIII and IX of Volume I and include details of each development project. It shall be an explanatory document to the Demand for Grants (Development). The Annual development Program shall be provided in Form BDD-3. 61. Supplementary Budget.(1) A Supplementary Budget based on the Statement of Excess and Surrenders and Revised Estimates shall also be submitted along with the other budget documents if required. (2) The supplementary budget shall be presented in the same form and manner as that of the annual budget. 62. (1) Draft and Final Budget.The Finance and Budget Officer after consolidating the budget estimates shall prepare a Draft Budget based on the preliminary estimates provided by the Government. The Draft Budget shall be discussed and finalized by the Budget and Development Committee. The budget based on the preliminary estimates as approved by the Nazim shall be presented to the Council for discussion as a Draft Budget. The recommendations of the Council on the Draft Budget shall be incorporated when the budget is being prepared and finalized on the basis of the final estimates provided by the Government. The budget based on the final estimates provided by the Government shall be presented by the Nazim to the Council for approval. Presentation to the Council.The budget documents shall be laid before the Council for approval. The Council may refer the budget documents to the Budget Committee constituted by the Council. The Committee shall perform the following functions32

(2)

(2) (3) (4)

(5) 63. (1) (2)

Budget Rules 2003

February 17,

(i) (ii) (iii) (iv)

scrutiny of receipts; scrutiny of expenditure; examination of new proposals for taxation; and make recommendations to the council.

(3) No Demand for Grant shall be made to the Council except on the recommendation of the Nazim. (4) The closing balance of the local government shall not fall below 5% of the total receipts (excluding those account) anticipated for the year. For the purpose of investments if any made out of the local government deemed to be a part of the closing balance. be allowed to of the public this Rule the fund shall be

(5) No lumpsum provisions shall be made in the budget the details of which cannot be explained. (6) A budget shall not be approved by the Council if the receipts do not match the proposed expenditure. 64. Schedule of Authorized Expenditure and Authentication by Nazim.Following approval by the Council of the Annual Budget Statement in respect of the next financial year, the Finance and Budget Officer shall(i) (ii) (iii) (iv) (v) prepare a Schedule of Authorized Expenditure; procure the authentication of the Nazim for the Schedule mentioned in Sub-Rule (i) above; Schedule of Authorized Expenditure shall be prepared in the same form as the Annual Budget Statement; the Schedule authenticated by the Nazim shall be laid before the Council, but shall not be open to discussion or vote thereon; and The Schedule of Authorized Expenditure shall lapse at the end of the financial year.

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February 17,

PART XI COMMUNICATION AND DISTRIBUTION OF GRANTS 65. Communication of Schedule of Authorized Expenditure.(1) A copy of the authenticated Schedule of Authorized Expenditure shall be forwarded to the Accounts Officer by the Finance and Budget Officer. (2) The Finance and Budget Officer shall intimate to each Head of Offices the details of the sums authorized in the Schedule of Authorized Expenditure for that financial year. 66. Communication of Grants to Drawing and Disbursing Officers (DDOs).On receipt of information from the Finance and Budget Officer regarding the Grants, placed at their disposal, the Heads of Offices shall further distribute the Grants to the Drawing and Disbursing Officers subordinate to him. The communication shall be completed by the 2nd week of July. 67. (1) (2) 68. Communication of Receipt targets to Collecting Officers.The targets for receipts approved by the Council shall be forwarded by the Finance and Budget Officer to the Head of Offices. The Head of Offices shall forward the receipt targets to the Collecting Officers subordinate to him. Communication to Government and other local governments in the District.A copy of the budget documents shall be supplied to the Government, Provincial Finance Commission and Local Government Commission. A copy shall be provided to other local governments in the District if requested by them.

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February 17,

PART XII EXPENDITURE MANAGEMENT 69. (1) Expenditure Management.Each local government shall(i) (ii) (iii) (iv) (2) ensure that it develops effective means to implement the budget as passed by the council; ensure that authorized budget allocations are expended in conformity with the Schedule of Authorized Expenditure; if necessary, modify the budget to a changing environment, in accordance with the provisions of these Rules; and efficiently and effectively manage the resources made available to the local government.

Two elements are necessary before public money can be spent(i) (ii) there must be an appropriation of funds for the purpose; and there must be sanction of an authority competent to sanction expenditure.

(3) Delay in payment of money indisputably due by a local government shall be avoided. The payment of all actual obligations shall be ascertained, provided for in the budget estimates, liquidated and recorded at the earliest possible date. (4) No contracts may be entered into by any authority, which has not been empowered to do so by the local government. 70. (1) (2) Responsibility of relevant local government Functionaries.The Heads of Offices shall be responsible for controlling and managing expenditure from the Grants placed at their disposal. Each Drawing and Disbursing Officer (DDO) shall be responsible for the expenditure actually incurred against the funds allotted to him. The expenditure shall be sanctioned in accordance with the delegation of Financial Power Rules. In case of any reduction in budget necessitated by lower than expected receipts the Nazim shall convene a meeting of the Budget and Development Committee and decide the requisite reduction in respect of any one or more heads of expenditure, keeping in view the priorities set by the Council. Such revisions shall require approval of the Council.

(3)

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February 17,

In case receipts exceed the estimations or additional grants or funding is received then a supplementary budget shall be presented to the Council prior to utilization of the additional funds. (4) In order to keep total expenditure within the Grant, every Head of Offices shall be informed monthly by each Drawing and Disbursing Officer of(i) (ii) (iii) (5) actual spending from the Grant or Grants placed at the disposal of any such subordinate Drawing and Disbursing Officer; the extent of commitments that have been made but not paid for against such Grant or Grants; and the extent of expenditure that is likely to be incurred during the remaining period of the financial year.

Each Head of Offices shall review the expenditure position and take such measures as may be required to check the trend of any excessive expenditure. Recording of disbursements by Drawing and Disbursing Officers (DDOs).Every Drawing and Disbursing Officer (DDO) shall maintain an appropriation register which shall include the commitments against the appropriations and a register of actual disbursements. The DDO shall also monitor the appropriations relating to establishment. When a bill is prepared for payment, the Drawing and Disbursing Officer (DDO) shall indicate complete accounts classification in respect of the proposed expenditure and the balance available in the detailed object head. The Drawing and Disbursing Officer (DDO) may maintain other registers as may be required to manage, control and monitor the budget. In the event that a Drawing and Disbursing Officer (DDO) receives confirmation from Head of Offices or any other source that a particular item of expenditure has been incorrectly classified, he shall immediately correct the accounts and send the same information to the Accounts Officer. A Drawing and Disbursing Officer shall not on his own authority authorize any payment in excess of the funds placed at his disposal. Reconciliation of expenditure - District Government and Tehsil Municipal Administration.-

71. (1)

(2)

(3) (4)

(5) 72.

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February 17,

(1) During the first week of each month, the respective Accounts Officer shall provide for the previous month, a schedule showing the numbers, dates and amounts of vouchers paid during that month, and supply copy of each such schedule to the concerned Drawing and Disbursing Officer (DDO). (2) Upon receipt of the schedule from the Accounts Officer, the Drawing and Disbursing Officer (DDO) shall(i) (ii) (3) compare such schedule with the statement prepared by him; and reconcile expenditure with Accounts Officer by 10th of the month for the previous month.

The respective Head of Offices, Drawing and Disbursing Officer (DDO) and the Accounts Officer shall be jointly responsible for reconciling any differences and for correcting misclassifications or any other errors. In case the reconciled statement is not provided by the Head of Offices by the 20th of the month to the Finance and Budget Officer, following the month to which the Accounts relate, no bills may be passed by the Accounts Officer for the defaulting DDOs. Monthly expenditure Statement.The Drawing and Disbursing Officer (DDO) shall provide a reconciled statement of expenditure not later than the 13th day of the month following the month to which the accounts relate, to the relevant Head of Offices in Form BM-1. If any Head of Offices has one or more subordinate Drawing and Disbursing Officers (DDOs), such Head of Offices shall consolidate the statements he receives from any such Drawing and Disbursing Officers (DDOs). The Head of Offices shall forward the consolidated statement of expenditure to the Finance and Budget Officer, so as to reach him by the 16th day of the month following that to which the accounts relate.

(4)

73. (1)

(2)

74.

Monthly Reports of expenditure.(1) Each local government shall submit a monthly report to the respective Council relating to the expenditure incurred during the month by the local government.

(2)

The monthly financial reports shall include the following BM Forms-

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Budget Rules 2003

February 17,

BM-1 - Monthly Statement of Current expenditure; BM-2 - Monthly Reconciliation of Current expenditure; (iii) (iv) BM-3 - Monthly Statement of Receipts; BM-4 - Monthly Reconciliation of Receipts;

BM-5 - Monthly Progress Report Development Programme - government Projects & Citizen Community Boards (CCBs); BM-6 - Monthly Reconciliation of Development expenditure; (vii) BM-7 - Monthly Report- Operationalization of Projects;

(viii) BM-8 - Service Delivery Targets; (ix) (x) (xi) (xii) BM-9 - Service Delivery Facilities Status; BM-10 - Establishment Status by Designation; BM-11 - Monthly Statement of Re-appropriations of Funds; BM-12 - Statement of Supplementary Grants; and

(xiii) BM-13 - Statement of Excesses and Surrenders. 75. (1) Steps Required in Case of likelihood of Excess expenditure.In the event that a Grant is likely to be exceeded, the Head of Offices shall take immediate steps to prevent the excess expenditure by(i) (ii) ensuring strict control over the affected Grant; or transferring funds under his powers of Re-appropriation; and

(iii) submitting as soon as the necessity becomes definite, an application for Supplementary Grant. (2) If funds cannot be provided through re-appropriations then a Supplementary Grant shall be need to be prepared and got approved from the Council before the additional expenditure is incurred. The procedure for re-appropriations and Supplementary Grants are provided in Part XIV of Volume I. Statement of Excesses and Surrenders.-

76. (1)

The Statement of Excesses and Surrenders shall be prepared in Form BM-13 by the Head of Offices after 8 months of the financial year.

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February 17,

(2)

For purposes of completing Form BM-13, the Heads of Offices shall obtain the required information from the concerned Drawing and Disbursing Officers (DDOs). Annually, one Statement of Excesses and Surrenders shall be prepared and submitted by the Heads of Offices to the Finance and Budget Officer. The Statement of Excesses and Surrenders shall be completed on the basis of actual expenditure incurred during the first eight months of the financial year and keeping in view the expected expenditure in the remaining four months of the financial year. The Excesses and Surrenders shall form the basis for (i) (ii) preparing the revised estimates; and formulating the demands for additional funds if required.

(3) (4)

(5)

(6)

The revised estimates shall also be used to form the basis of the following year budget estimates and for determining the estimated closing balance of the local government fund. The Heads of Offices shall submit together with the Statement of Excesses and Surrenders a note explaining the reasons for the excesses and surrenders. The Finance and Budget Officer shall consolidate the Statements of Excesses and Surrenders for approval by the Budget and Development Committee (BDC). 77. Revised Estimates and Supplementary Grant.(1) In addition to any revisions during the year every local government shall after 8 months of the financial year prepare revised estimates based on the Statement of Excesses and Surrenders to be finalized by the Budget and Development Committee in March. (2) If additional funds, which cannot be met through re-appropriation are identified for the remaining four months a Supplementary Grant shall be submitted to the Council for approval alongwith the Draft Budget for the next financial year in April. 78. Distribution and Communication of Supplementary Grant.-

(7)

(8)

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February 17,

(1)

Subsequent to approval by the Council and intimation by the Finance and Budget Officer of the Supplementary Grant, the Heads of Offices concerned shall distribute the Supplementary Grant and communicate the break-up of the Grant to Drawing and Disbursing Officers and the Accounts Officer concerned. (2) The Collecting Officer shall also be communicated the revised targets for receipt as approved by the Council.

79. (1)

Principal Accounting Officer (PAO).The Principal Accounting Officer for local governments shall be(i) District Coordination Officer (DCO) for District/City District Government; and (ii) Tehsil Municipal Officer (TMO) for Tehsil Municipal Administration.

(2) 80.

The Principal Accounting Officer shall be responsible for resolving the Audit paras. Accounts Committee of the Council.(1) The Accounts Committee of the Council shall monitor the budget during the financial year. (2) The Accounts Committee shall review the monthly financial reports including the accounts report submitted by the Accounts Officer. (3) The Accounts Committee shall especially focus on the reconciliation of expenditure. (4) The Head of Offices shall be responsible to the Accounts Committee of the Council for issues relating to expenditure.

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February 17,

PART XIII RECEIPT MANAGEMENT 81. (1) Receipt Management.The primary obligation of the Collecting Officers shall be to ensure that all revenue due is claimed, realized and credited immediately into the local government fund under the proper receipt head. The Head of the Offices shall supervise and take corrective measures in respect of the activities of the Collecting Officers. Monthly Statement of Receipts.The Collecting Officers shall furnish monthly reconciled statements of actual collections under the heads for which they are responsible to the Head of Offices in Forms BM-3 and BM-4 by 13th day of the month following the month to which the statement relates. The Head of Offices shall consolidate the figures received from different Collecting Officers and shall forward the same to the Finance and Budget Officer by the 16th day of the month following the month to which the statement relates. Reconciliation of Receipts - District Government and Tehsil Municipal Administration.The Collecting Officers shall reconcile his figures with the record maintained by the Accounts Officer by the 10th day of the month following the month to which the statement relate. In order to enable the Head of Offices concerned to verify whether the amounts shown as realized in the statements have actually been realized and credited to the proper head of account, the Accounts Officer concerned shall provide the Head of Offices with statements confirming the actual amounts credited under the relevant receipt heads. Prompt Deposit of Receipts.The receipts for a month shall be the figures of the receipts credited during that particular month. In the event that any money is realized in one month but not credited until the subsequent month except that relating to the last working day of a calendar month, the facts and circumstances shall be clearly stated in the monthly report in which the receipts were realized.

(2) 82. (1)

(2)

83. (1)

(2)

84. (1) (2)

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(3) 85. (1)

The sanction of the competent authority is necessary for the remission of, and abandonment of claims to revenue. Rectification of Errors in recording of receipts.In the event that any error in recording of receipts is discovered the return shall be corrected and an intimation shall immediately be sent to the concerned Accounts Officer for rectification. In the event of any error detected in the office of the Accounts Officer, such office shall forward the details to the Collecting Officers. Monthly Report of Receipts.(1) Each local government shall submit a monthly report to the respective Council relating to the receipts received during the month.

(2) 86.

(2)

The monthly financial report relating to receipts shall include the following Forms(i) (ii) 87. (1) (2) BM-3 - Monthly Statement of Receipts; and BM-4 - Monthly Reconciliation of Receipts.

Accounts Committee to Monitor Receipts.The Principal Accounting Officer (PAO) shall be responsible for resolving Audit paras relating to receipts. The Accounts Committee of the Council shall monitor the receipts during the financial year.

(3) (4)

The Accounts Committee shall especially focus on the reconciliation of receipts and realization of monthly targets. The Head of Offices shall be responsible to the Accounts Committee of the Council for issues relating to receipts.

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PART XIV RE-APPROPRIATIONS AND SUPPLEMENTARY GRANTS 88. Expenditure not provided for in the Schedule of Authorized Expenditure.In the event that unavoidable and unforeseen circumstances arise during the course of any particular financial year that requires incurring excess expenditure or expenditure not contemplated in the Schedule of Authorized Expenditure, such expenditure shall be made available through, re-appropriation or supplementary grants or both. 89. (1) Re-appropriations.Re-appropriation means the transfer of savings in a unit of appropriation to meet excess expenditure anticipated under another unit of appropriation. The officials shall re-appropriate in accordance with the re-appropriation powers delegated by the respective Council to them. Procedure for Re-appropriation.If any officer is competent to sanction a re-appropriation, such officer may do so pursuant to the powers delegated to him by the Council. A copy of the order sanctioning any re-appropriation shall be communicated to the Head of Offices, Finance and Budget Officer and the Accounts Officer. A request for re-appropriation shall be prepared by the concerned Drawing and Disbursing Officer. If it involves different Drawing and Disbursing Officers then the Head of offices shall process the reappropriation. If the re-appropriation involves two different grants then the Finance and Budget Officer shall be responsible for processing the reappropriation. In the event that the re-appropriation is beyond the limit set by the Council, it shall require the approval of the Council. In such cases the request for re-appropriation of funds shall be prepared by the Head of Offices and forwarded to the following officers in succession(i) (ii) (iii) The Finance and Budget Officer; Budget and Development Committee; and Council for approval.

(2) 90. (1)

(2)

(3)

(4)

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91. (1)

Supplementary Grants.In case that a Head of Offices considers that the need for additional funds has arisen for which no re-appropriation is available. He shall submit a proposal for Supplementary Grant to the Budget and Development Committee (BDC) through the Finance and Budget Officer (FBO). The proposal shall be accompanied by an explanatory note justifying the Supplementary Grant. The Supplementary Budget Statement.Requests for Supplementary Grant during the financial year shall be consolidated by the Finance and Budget Officer (FBO) in the form of a Supplementary Budget Statement. The same details as in the annual budget shall be provided to the Council. The form and manner in which the Supplementary Budget Statement is presented to the Council shall be the same as that of the Annual Budget Statement.

(2) 92. (1)

(2)

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PART XV LINKAGE WITH THE GOVERNMENT AND FISCAL TRANSFERS 93. Local government Fund.The resources made available to the local government through fiscal transfers from the Provincial Government shall comprise share of receipts of the concerned local government and shall constitute a part of the local government Fund. 94. Distribution of Funds to local government by Government.The share of each local government shall be in accordance with the Award notified by the Governor. 95. Communication of Preliminary Figures of local government share.The Finance Department shall communicate the preliminary estimates of the respective local government share by the first week of March each year. 96. Communication of Final Figures of local government share.The Provincial Finance Department shall communicate the final estimates of local government share in June each year. 97. Monthly transfer of local government share.The Finance Department shall disburse the local government share directly to the local government on monthly basis. 98. (1) Submission of Reports.The District Accounts Officer (DAO) shall send monthly accounts to the Government of all the local governments in the district. The Accounts Officer of Tehsil Municipal Administration shall submit reconciled accounts to the District Accounts Officer well in time to meet the above deadline. The local governments shall provide regular and special reports on any aspect of the local government finances, as and when such reports may be required by the Government.

(2)

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PART XVI PERFORMANCE TARGETS 99. (1) Performance Targets.In order to improve efficiency and effectiveness of service delivery, the local government shall provide performance targets along with the financial figures in the budget. The performance targets may be provided for inputs, outputs or outcome. Performance targets shall be(i) (ii) (iii) (3) clear, precise and unambiguous; relevant; and verifiable.

(2)

The Budget and Development Committee (BDC) shall finalize with each Head of Offices their intended performance targets for the next financial year. Such mutually agreed performance targets shall be prepared on Forms BSF-2 and BSF-3. The status of Performance Targets achieved shall be provided regularly during the year through Forms BM-8 and BM-9.

(4)

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February 17,

PART XVII MULTI-YEAR PLANNING 100. Multi-year Planning.(1) (2) Where the implementation period of a development project exceeds one financial year multi-year planning shall be necessary. The multi-year planning shall take also into consideration the Citizen Community Board (CCB) projects.

(3) To determine the fiscal space in a multi-year environment requires analyzing(i) (ii) future revenue prospects; and future expenditure.

101. Projection of Estimates of Receipts.(1) The revenue projections for the next three financial years shall be computed by analyzing the growth trend of the revenue items during previous financial years. The projections for revenues for future years may be further adjusted. Such adjustment may be effected by taking into account the change in local economic conditions and likely policy initiatives. The multi-year projection for receipts shall be prepared on Form BMP-2.

(2)

(3)

102. Projection of Estimates of expenditure.(1) The Estimates of expenditure shall be projected for the future years by taking into account the following factors(i) (ii) (iii) effect of inflation; annual increase in the pay of the establishment; expansion programs of the current services; (iv) impact of currently undertaken development projects upon recurrent expenditure; (v) (vi) (2) anticipated savings on account of improved efficiency; and relevant policy decisions.

The multi-year projection for expenditure shall be provided in Form BMP3 and BMP-4.
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103. Presentation of Multi-Year Projections.Fiscal space based on the multi-year projections for the period covered by the Annual Development Programme shall be presented in Form BMP-1.

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PART XVIII MISCELLANEOUS 104. Interpretation of Rules.In case of any ambiguity or inconsistency arising in the interpretation or construction of the provisions of these Rules, the Government shall resolve such ambiguity or inconsistency.

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VOLUME II CITIZEN COMMUNITY BOARDS (CCBs)

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PART I REGISTRATION OF CITIZEN COMMUNITY BOARDS 105. Application for availability of name for a CCB.(1) Persons desirous of being registered as a CCB under these Rules shall make an application on a plain paper duly signed by atleast two founder members alongwith photocopy of their National Identity Cards to the concerned Registration Authority requesting information as to whether the proposed name is available for registration. (2) Each CCB registered under these Rules shall include the name of the Union at the end, within whose territorial jurisdiction its office is situated. The name of a CCB shall be on the following format[Name ] (CCB) [Name of the Union Council in which the office is to be registered]. (3) A CCB shall not be registered by a name identical to or so nearly resembling that of a registered CCB or other entity that it may deceive a man of ordinary prudence. (4) A confirmation of availability of name by the Registration Authority shall be provided on CCB Form 1. (5) If for any reason the Registration Authority does not respond within fifteen days of the receipt of application, approval to use the name proposed by such CCB shall be deemed to have been given. (6) The name of the proposed CCB shall be reserved for a period of one month by the Registration Authority after which the CCB shall have to apply again for ensuring the availability of the name. 106. Change of Name of a registered CCB.(1) A registered CCB intending to change its name, shall follow the same procedure as that for a new CCB as provided in Rule 105. (2) Notwithstanding anything to the contrary, if the Registration Authority is of the opinion that the name, of a registered CCB is deceptive, inappropriate or may exploit or offend religious susceptibilities of the people, the Registration Authority shall require such CCB to change its name. 107. Application for Registration as CCB.(1) A group of persons not less than twenty five (25) non-elected persons may, by subscribing to the Charter register themselves as a CCB.

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(2) CCB shall be registered at the office stated in the Charter of the CCB. Such office shall be within the limits of the District. (3) There shall be no limit on the number of CCBs, which can be registered in a local area. (4) A request for registration as a CCB shall be accompanied by(i) an application on a plain paper duly signed by its Chairman and Secretary; (ii) three (3) copies of the Charter which shall be duly subscribed and witnessed; (iii) a copy of the confirmation received from the Registration Authority that the proposed name for the CCB is available or evidence that a copy of the application was deposited at least fifteen days prior to the date of application for registration; and (iv) a list of atleast twenty five founder members in the form hereto annexed as CCB Form 2. (5) The Registration Authority on being satisfied, after such enquiry and after obtaining such further information, as it may consider necessary, shall issue a certificate of registration within fifteen days in the CCB Form 3. (6) If the Registration Authority does not object to the registration as a CCB within thirty days of the date on which the application for registration is made the registration shall be issued to the CCB. (7) The registration shall be valid within the District under the jurisdiction of the Registration Authority and shall not require renewal. (8) The Registration Authority by an order recording reasons may refuse registration if it is satisfied that the objectives, functions or activities proposed to be carried out are opposed to public policy or contrary to the law or the Rules. (9) Before making an order under sub-rule (8) above, the Registration Authority shall give notice within 15 days to the chairman and or secretary of the proposed CCB to show cause, on or before a date specified therein but not less than fifteen days, as to why the application for registration shall not be rejected. (10) Any person aggrieved by an order of the Registration Authority under sub-rule (9) above, may appeal in writing to the concerned Zila Nazim within thirty (30) days of the date of such order. The Zila Nazim shall communicate his decision in writing to the CCB within fifteen days.

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(11) Any person after the rejection of the appeal by the Zila Nazim or on not receiving a reply within thirty days from the Zila Nazim as provided in sub-Rule (10) may appeal to the concerned Zila Council within thirty (30) days of the date of such rejection by the Zila Nazim or within thirty days of the expiry of the fifteen days period. Such appeal shall be taken up by the Zila Council in the next meeting. 108. Documents to be filed with the Registration Authority.(1) Once in every year, on or before the 31st of August, each CCB shall file with the Registration Authority, the following documents(i) (ii) (iii) List of its members with National Identity Card numbers; particulars of its Chairman, members of the Executive Committee, and the Secretary; copies of the audited annual accounts of the previous year. However, these shall be submitted by 31st December following the close of the financial year in June; and list of development projects undertaken.

(iv) (2)

If, and when, deemed appropriate, the Registration Authority may request copies of such documents as it may require.

109. Mode of Submission of Documents.(1) Every application, form or document submitted by a CCB shall, in addition to complying with any other requirement of the Ordinance or these Rules, be(i) (ii) (iii) (iv) signed and certified by a responsible person of the CCB; accompanied by documents referred to in the application; accompanied by one spare copy, duly signed, dated and verified; and accompanied by the original receipt of the treasury or bank or post office as evidence of payment of the prescribed fee where applicable.

(2)

Any application, document, statement, return, or report shall be delivered, either in person or through an agent, against receipt, to such addressee or sent to such addressee by registered post. (3) Any person may inspect the record of a CCB available with the Registration Authority or with any other office of the local government upon a written request indicating the reason for inspection.

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110. Changes in Charter.(1) A CCB desirous of changing its Charter may do so provided, that it has by written notice intimated the changes to the Registration Authority. (2) Such change in the Charter shall become effective upon confirmation by the Registration Authority in writing. (3) In case the Registration Authority does not confirm the changes within thirty days of the date on which such intimation was received by the Registration Authority, such change shall be deemed effective to the extent that it does not contravene the provisions of the Ordinance or these Rules, upon conclusion of such period. 111. Payment of Fees.(1) There shall be paid in respect of the matters mentioned in the Second Schedule, the fees therein specified, by the Registration Authority concerned. (2) The Registration Authority concerned may amend the Second Schedule with the approval of the Zila Council.

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PART II DISSOLUTION OF CCB 112. Dissolution of the CCB.(1) A CCB may be dissolved or deregistered by the Registration Authority after approval of the Zila Council if(i) in the opinion of the Registration Authority based on the report of the inquiry official, the CCB is unable to carry out its functions in accordance with the Ordinance or Rules framed thereunder; or (ii) a CCB, by a resolution passed by not less than seventy five (75) per cent of its members, resolves to be dissolved or deregistered. (2) The CCB official through the Zila Nazim put up the case of dissolution to the Council. (3) The Zila Council shall allow dissolution after examination of the Charter, accounts including liabilities and other documents of the CCB. (4) An application for dissolution submitted by a CCB to the Registration Authority under sub-Rule (1)(ii) shall be deemed to have been accepted by the concerned Zila Council after a period of 60 days unless reasons for the delay are intimated to the CCB in writing by the Registration Authority. (5) Upon dissolution the Registration Authority shall appoint an administrator to deal with the matters relating to the dissolution of a CCB. The assets of the CCB however shall continue to be used for community welfare.

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PART III DEVELOPMENT PROJECT PREPARATION, APPROVAL AND IMPLEMENTATION 113. Development project Identification by CCBs.(1) The CCB project shall be identified within the overall policy guidelines and framework of the local government concerned to which the CCB project shall be submitted for funding. CCB funds are earmarked in the development budget at all levels of local governments and a CCB may submit project proposals to any level of local government. A CCB shall identify Project Proposals in accordance with the classification of Projects issued by the local government concerned and submit to the concerned CCB official in accordance with the time frame provided in the Third schedule or as notified by a local government. CCB projects shall be initiated at the grass roots level in every local area, and the residents thereof shall primarily be involved in determining the development needs for such local area. Project concepts shall be discussed with the concerned sectoral Office of the local government to which the project relates. The concerned CCB official shall arrange the meetings for the CCBs with the sectoral offices. A CCB shall identify projects subject to the following(i) classification of schemes issued by the concerned local government ; (ii) needs of the community; (iii) (iv) capacity to implement the project; cost-benefit analysis;

(2)

(3)

(4)

(5)

(6)

(v) duration of the project; (vi) (vii) financial implications; compatibility with availability of the resources; and

(viii) sustainability.

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114. Preparation of Project Proposals by CCBs.(1) The concerned local government sectoral office to which the project relates shall prepare the cost estimates, determining the viability and in other issues relating to the project. (2) The CCB shall prepare project proposal in CCB Form- 4 and submit the project proposal to the concerned CCB official according to the time frame in the Third Schedule or as notified by it each year. (3) A CCB may in addition to 20% share mentioned in Rule 15(ii) make contribution towards the cost of a project "in kind". The "in kind" contribution shall be considered as additional contribution and included in the ranking and evaluation of the proposal. (4) Where two or more local governments of the same levels are involved in a project, the concurrence of the concerned Nazims shall be included in the proposal. (5) A CCB shall only submit projects to a local government, which relate to the functions of that local government as defined in the Ordinance. 115. Processing of CCB Project by local government.(1) The CCB official shall confirm the following before submitting the project proposal to the concerned Development and Planning Officer. (i) (ii) (iii) the CCB concerned is duly registered under the Ordinance and these Rules; the project proposal is in conformity with the classification issued by the concerned local government; CCB draft in the amount equal to the twenty (20) per centum share in a project is attached, which shall be returned to CCB after the decision of the council concerned. The draft shall be in the name of the CCB; and the project proposal submitted is in conformity with CCB Form-4.

(iv)

116. Ranking of CCB Project Proposals by Development and Planning Officer.(1) The concerned Development and Planning Officer shall draw up a first statement specifying the Projects proposed by the CCB by classification including the total amount of a contribution for a particular classification of the project based on the policy frame work. For details see Volume II Schedule V.

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(2)

A second statement shall determine contribution amounts for a particular classification for the project as a ratio of the total contributions for all projects of CCBs for that year and the statement shall be used to determine amount of allocations for a classification of projects from the budgets reserved for the purpose. For details see Volume II Schedule V. A third statement shall be drawn up which shall identify the number of projects included in a particular classification beginning with the projects containing the highest contribution by the CCB in a classification, until all the projects in this classification are selected or the funds allocated for that particular classification in the amount determined in sub Rule(2) above are exhausted. For details see Volume II Schedule V. The in kind contribution shall be considered as additional contribution of the CCB while making the ranking in the third statement. The determination of the market value of the in-kind contribution shall be made by the concerned local government sectoral office to which the project relates. The Development and Planning Officer shall submit the CCB Projects to the Budget and Development Committee of the concerned local government through the Finance and Budget Officer for inclusion in the Annual Development Programme.

(3)

(4)

(5)

117. Project Proposal Review by the Budget and Development Committee.(1) The concerned Budget and Development Committee shall conduct complete review and analysis of the project proposals submitted by the CCBs and may recommend changes to be made in the project proposal. The changes in sub-Rule (1) shall be intimated by the CCB official to the CCB within the time frame notified by the concerned local government. The Budget and Development Committee shall not reject any CCB proposal. CCB may incorporate the changes as given under sub-rule (2) above, in the project proposal and submit the same to the concerned Development Committee, through the concerned CCB official within the time frame notified by the concerned local government. The CCB shall provide the reasons if the changes recommended by the local government are not incorporated in the project proposal. If the intimation as per sub-rule (2) above, is not given to CCB within the time frame notified by the concerned local government, it shall be presumed that the project proposal has been duly processed by the concerned Budget and Development Committee as submitted.
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(2) (3) (4)

(5) (6)

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118. Approval of Project Proposals by the Council.(1) The concerned Council shall approve such CCB Project Proposals as it deems necessary keeping in view the comments of the Budget and Development Committee. The projects approved by the Council shall be communicated to the CCBs concerned, through the concerned CCB official after approval of the budget.

(2)

119. CCB Bank Accounts etc.(1) After approval of a project by the Council a CCB shall(i) open an account for that project with a bank or post office within the limits of the local area in which the CCB has its office; and (ii) deposit its share of the cost of the Project approved by the Council. (2) A CCB shall open separate accounts for each Project.

(3) The accounts opened and maintained by a CCB shall be operated jointly by the chairman and secretary of the CCB. (4) A CCB shall not incur debt.

120. Project Implementation by CCB.(1) CCB, upon receipt of approved project budget estimates, shall submit the following documents to the concerned CCB official dealing with CCBs. (i) certificate of a bank or post office showing evidence of deposit of twenty percent (20%) share of the CCB; (ii) copy of duly executed agreement with the local government concerned as per CCB Form -5; and (iii) request for first installment as per CCB Form -6.

(2) CCB shall implement duly approved projects as specified in the project agreement by itself. (3) CCB shall implement the project within the allocated funds and within the allowed time frame.
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(4) Upon submission of the documents to be filed under sub-rule (1) above, the CCB official shall, in accordance with the disbursement schedule in the agreement referred to in sub-rule (1) (ii) above, transfer the first installment into the account specified by the CCB under sub-rule (1) (i) above. (5) Subsequent transfer of installments by the local government concerned shall be made in accordance with the schedule agreed to between the CCB and the local government concerned. (6) The release of subsequent installment shall be subject to the approval of the concerned local government. (7) The installment shall be released to the CCB as per the agreed schedule within 30 days from the receipt of request made by the CCB. (8) In case of delay in the release of installment within 30 days the CCB may approach the Council for release of the installment, which shall take up the matter in its next meeting. (9) The release of installments to CCBs shall have priority over other expenditures of the local government. (10) The respective accounts official shall not make any payment against the budget if(i) (ii) the 25% of the development budget has not been reserved for CCBs; and the unspent balance from the previous reserved CCB amount has not been added to the CCB allocation in the current year budget.

(11) The respective accounts officer shall ensure that the reserved amount for CCB is safeguarded during the budget year and is spent solely for that purpose. 121. Project Monitoring and Evaluation.(1) CCBs projects shall be subject to monitoring and evaluation by the respective Monitoring Committee constituted under the Ordinance or by any other agency/official(s) notified by the concerned local government. The Monitoring Committee shall prepare monitoring and evaluation report of the CCB Projects and shall submit the same to the Council and the Nazim concerned. The Monitoring Committee shall neither interfere in the day to day affairs of the CCB nor shall it stop the work of the CCB.

(2)

(3)

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(4)

The CCBs shall provide access to all its record to the Monitoring Committee or any other agency, official(s) notified by the local government. Monitoring of CCBs by a local government shall be non-intrusive.

(5)

122. Budget Re-appropriation.(1) (2) (3) (4) CCB shall remain within the approved budget allocation. The re-appropriation upto a maximum of 20% of the approved budget in any head may be done by the CCB. The re-appropriation beyond 20% in a head, prior approval of the CCB official shall be required. The request for re-appropriation shall be submitted on CCB Form 7.

123. Excesses and Surrenders in the Budget.(1) The authority to accept or reject any additional expenditure over and above the approved budget shall vest with the Council. The Council shall consider the recommendations of the concerned sectoral office of the local government in this respect and the availability of budgetary provisions. (2) Excess requirements of funds shall be granted by the respective local council with such conditions as it may deem fit. (3) conditionsSurrenders shall be allowed upon the following

(i) the CCB shall have completed the project as per the approved budget proposal and the agreement with the local government concerned; and (ii) the funds surrendered by the CCB under sub-rule (i) above shall be deemed as the share or part of the share of such CCB for the purposes of future project proposals submitted by such CCB.

(4)

Request for excesses and surrenders shall be made in CCB Form-8.

124. Audit and Accounts.(1) The Secretary of the CCB under the general supervision and control of the Executive Committee shall maintain proper records of all transactions, assets and liabilities of the CCB. (2) The CCB shall follow the procurement rules and regulations approved by its General Body. Such Rules shall be based on sound procurement practices.
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(3) The local government may require the CCB to furnish such financial information as it may deem necessary or maintain accounts in the prescribed manner. (4) The accounts of the CCB shall be audited as prescribed by the Auditor General of Pakistan. (5) auditor. The CCB shall provide access to all its record to the

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PART IV

SCHEDULES VOLUME II

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FIRST SCHEDULE [See Rule 107] CHARTER OF [NAME] (CCB) [NAME OF UNION] We, the several persons who have subscribed to this Charter are desirous of being registered as a Citizen Community Board under the [SBNP] Local Government Ordinance, 2001 (Ordinance No. [ ] of 2001), and to this end, adopt, enact and covenant to be bound by this Charter, as follows1. Definitions.In these Articles, unless the context or the subject matter otherwise requires(1) (2) (3) (4) (5) (6) (7) "Articles" means the articles of this Charter. "CCB" means this [CCB]. "Chairman" means the chairman of the CCB. "Executive Committee" means the executive committee of the CCB as formed under this charter. "Project Coordinator" means a member of the CCB appointed under Article 14 of this Charter. "Secretary" means the secretary of the CCB. Words imparting masculine gender shall include the feminine gender.

2. Name.The name of the CCB shall be "[NAME] Citizen Community Board [NAME OF UNION]", hereinafter referred to as the CCB. 3. Address.The registered address of the CCB shall be at [ADDRESS OF CCB]. 4. Field, Sector Or Sub-Sector Of Operation.[] [] [] [] Agriculture Community Development Education Health

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[] [] [] []

Information Technology Literacy Works and Services Other sector (please specify)

Sub-sectors: [ ] (please specify) 5. Objectives of the CCB.The CCB has been established to undertake any or all of the following(i) improvement of existing service delivery facilities; (ii) (iii) (iv) (v) (vi) (vii) development and management of a new public facility; welfare of the handicapped, destitute, widows and families in extreme poverty; establishment cooperatives; of farming, marketing and consumers

identification of development and municipal needs; mobilization of resources through community mobilization; formation of stakeholder associations for community involvement in the improvement and maintenance of facilities; and

(viii) reinforcing the capacity of Monitoring Committees at the behest of the concerned Council. 6. Members and Classification.(1) The CCB may have the following categories of members(i) (ii) registered members. (2) Each member shall have one vote, and may vote at any general body meeting personally or through a proxy. A proxy must be a member of the CCB. The General Body may establish additional classes of members upon such terms and conditions as it may deem fit. "Founder members": These constitute the members who are signatories to the Charter; and "Members": These constitute individual

(3)

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(4) (5)

Application for resignation as a member shall be presented in writing to the Secretary on a plain paper. All types of CCB members shall be volunteers. In case a member accepts any paid assignment on behalf of the CCB, the concerned member shall have to resign from the membership of the CCB. A period of six months must elapse upon the last payment received from the CCB before that member can become a member of the CCB again.

7. Functions of the General Body.(1) The number of members of the General Body shall not be less than twenty five (25). (2) The functions of the General Body shall be(i) to elect an Executive Committee (including the Chairman, Secretary and other office bearers) with such powers and responsibilities, and on such terms and conditions as the General Body may determine to carry out the affairs of the CCB; (ii) to approve the plans and activities of the Executive Committee; (iii) to governments; approve the proposals submitted to local

(iv) to ensure the implementation of it plans and activities through the Executive Committee; (v) to approve the Rules and Regulations for the Executive Committee and the members of the CCB; (vi) to review and approve the reports and statements submitted to it by the Executive Committee; (vii) (viii) (ix) to approve amendments in the Charter of the CCB; to approve the annual accounts of the CCB; to set membership classes and fees; and

(x) to discuss any other matter relating to the CCB. 8. General Body Meetings.(1) The first General Body meeting after the registration of the CCB shall be held within thirty (30) days of the date of registration of the CCB.

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(2) three months.

A General Body meeting shall be held atleast every

(3) The Executive Committee may convene a General Body meeting when required. (4) A General Body meeting shall be convened on the requisition, in writing, of a simple majority of the CCBs members. (5) At least fifteen days notice (exclusive of the day on which the notice is served, but inclusive of the day for which notice is given), specifying the place and the day and the time of meeting, and the agenda, shall be given for all General Body meetings to all members, but the accidental omission to give notice to, or the non receipt of notice by, any member, shall not invalidate the proceedings at any General Body meeting. (6) No business shall be transacted at any General Body meeting unless a quorum of members is present at the time when the meeting proceeds to business. A simple majority of the total members of the CCB shall constitute a quorum. In the absence of a quorum, the meeting shall be adjourned to the same time and venue seven (7) days later. Except as otherwise provided by law, these Rules or this Charter, the act of a majority of the members present at any meeting shall be the act of the CCB in the General Body meeting provided that in case of a tie, the Chairman of the CCB (i.e. Executive Committee) shall have a second and casting vote.

(7)

9. Executive Committee.(1) (2) The Executive Committee shall have, and exercise, all powers vested in it by law and this Charter. Subject to law and this Charter, the management of the affairs of the CCB and property both movable and immovable of the CCB shall vest in the Executive Committee. A CCB shall sue and be sued in the name of its Executive Committee. A judgement against the CCB shall only be enforced against the property of the CCB. The number of the members of the Executive Committee of the CCB, except in case of a casual vacancy occurring as per sub-Rule 10, shall not be less than seven (7). The maximum limit on its membership may be fixed from time to time by the General Body; provided, however, that the total number of members of the Executive Committee shall not exceed fifteen (11).

(3)

(4)

(5)

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(6)

The Executive Committee shall consist of the following(i) (ii) (iii) a Chairman; a Secretary; and and office bearers as decided by the General Body.

(7) (8)

The members of the Executive Committee shall be elected from amongst the members of the CCB by the General Body. Members of the Executive Committee shall hold office for a term of two years, and shall be eligible for the next following term. However, after completing two consecutive terms, the Chairman and Secretary shall vacate the office of the Executive Committee for at least one term before becoming eligible for re-election. The General Body may, by a resolution passed by a simple majority, fill any casual vacancy arising in the Executive Committee howsoever caused. However, the term of the person so chosen shall be for the remaining life of the Executive Committee. In case of casual vacancy in the Executive Committee, the Executive Committee shall act as if no vacancy had occurred and no act or proceedings of the Executive Committee shall be deemed to be invalid merely by reason of such vacancy, or a delay in the appointment of a new member; provided, however, that the total number of members of the Executive Committee shall not be less than seven (5). The General Body may, by a resolution passed by a simple majority of its total members, remove any member of the Executive Committee from the office of the Executive Committee. 10. Functions of the Executive Committee.The functions of the Executive Committee shall be(i) to develop plans and activities for approval by the General Body; (ii) to prepare periodic reports and statements for the General Body; (iii) (iv) to identify and develop project proposals for funding from the local governments and other agencies; manage the day to day affairs of the CCB as per the resolutions passed by the General Body;

(9)

(10)

(11)

(v) to appoint Project Coordinators with such powers and responsibilities and on such terms and conditions, as it may determine;

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(vi) (vii) 11. (1)

constitute and appoint sub-committees for such purposes as it deems necessary; and any other function assigned to it by the General Body.

Working of the Executive Committee.-

The Chairman shall preside over all the meetings of the Executive Committee. If the Chairman is absent the members of the Executive Committee present may elect any other member to act as Chairman for that meeting. The Secretary shall, subject to the general control and supervision of the Executive Committee, perform such functions as may be assigned to him by the Executive Committee, from time to time. The Secretary shall, record or cause to be recorded in the books, all proceedings of the meetings of the Executive Committee and the General Body. The Secretary shall give all notices in accordance with law and this Charter, and shall be the custodian of the financial and accounting records of the CCB. Subject to law and this Charter, the Executive Committee may meet for the disposal of business, adjourn and otherwise regulate its meetings, as it deems fit and lay down such proceedings as it considers necessary for its efficient working. The Executive Committee shall meet whenever convened by the Chairman or, by a simple majority of the members of the Executive Committee. A simple majority of the total members of the Executive Committee shall constitute a quorum for the transaction of any business of the Executive Committee. In the absence of a quorum, a meeting may be adjourned till such time as the quorum is complete; provided always that a meeting of the Executive Committee must take place atleast once every month. Except as otherwise provided by law or this Charter, the act of a majority of the members of the Executive Committee present at any meeting (at which a quorum is present) shall be the act of the Executive Committee. In the case of a tie, the Chairman shall have a second and casting vote. Any member of the CCB shall have the right to attend the meetings of the Executive Committee but not vote unless the member is a member of the Executive Committee.

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

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12. (1)

First Executive Committee.The particulars of the first members of the Executive Committee are the followingSr. # Name and ID Parentag Card e Number Residenti al Address Present Occupation & Business Address Membership of other Voluntary Organizations

(2) (3) 13. (1)

The Chairman of the CCB is [NAME]. The Secretary of the CCB is [NAME]. Sub-Committees.The Executive Committee may constitute and appoint sub-committees for such purposes as it deems necessary and on such terms and conditions as it may, from time to time, determine. The sub-committees so constituted shall meet as often as may be necessary and shall exercise all powers and functions as may be assigned to them by the Executive Committee. The term of the members of sub-committees shall be such as may be decided by the Executive Committee. CCB Project Management.The Executive Committee shall appoint for each project a Project Coordinator, who shall be a member of the CCB. The Executive Committee shall have the powers to remove a Project Coordinator. The duties of the Project Coordinator shall include but not be limited to(i) (ii) (iii) supervising and administering the Project assigned to him by the Executive Committee; preparing progress reports for submission to the Executive Committee, as and when required; disbursing funds for the Project assigned to him according to the approved budget of the project;
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(2)

(3) 14. (1)

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(iv) (v) 15.

constituting such working groups of members as may be necessary to assist him in his duties and functions; and performing any other duty, which the Executive Committee may, from time to time, assign.

Notice.Wherever notice of a meeting is required to be given by law or hereunder due notice shall be deemed to have been served when the Secretary sends a written communication by mail, telegram, facsimile or by hand under a receipt, addressed to the members of the Executive Committee or the members, as the case may be, at the address in the Register.

16. (1)

Amendments in the Charter.Subject to the law, the Rules and this Charter, this Charter may be amended or repealed and new Articles may be adopted at the General Body meeting by a resolution passed by at least three fourths majority of the total members of the CCB personally present and voting. The amendments approved in a General Body shall not be effective unless approved by the Registration Authority. Internal Procedures.(1) The CCB may make such internal procedures to provide for matters not specifically or sufficiently set out herein, provided, however, that such procedure shall not, directly or indirectly, contravene the provisions of the Ordinance, the Rules or this Charter. (2) The CCB shall be at liberty to prescribe such fees or other charges, as it may deem fit, for the purposes of its membership and the conduct of its members and matters ancillary or conducive to the attainment of the objectives of the CCB.

(2) 17.

18.

Miscellaneous [To be filled in the discretion of the CCB].-

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WE, THE UNDERSIGNED, hereby verify and attest our submission to this Charter. Sr . # Nationality with any former nationality (if any) Occupation And Business Address Membership of other Voluntary Organizations

Name

Father' s name

Residential address

Signature

Dated the ________ day of ___________ 20___. Witnesses to the above signatures1. Name Father's Name Occupation Address : : : : __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________

National I.D. No. : 2. Name Father's Name Occupation Address : : : :

National I.D. No. :

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SECOND SCHEDULE [See Rule 111] SCHEDULE OF FEES 1. Registration Fee 2. 3. Copying Fee page Rs. 50/Rs. 2/- per Rs. 50/-

Changes in Charter

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THIRD SCHEDULE [See Rule 113] CCB - Project submission and approval time frame Module Activity Target date

CCBs identify and develop projects through out the period January to November every year Guidelines/ Classification identifying the priority sectors for CCBs to be issued by each local government to the CCBs Project Proposals submitted to the CCB official. Copy provided to the Budget and Development Committee. Review of CCBs Project proposals by the Budget and Development Committee Changes in the CCB Project Proposals recommended by the Budget and Development Committee and provided to the CCBs by the concerned CCB official Re submission of Project proposals by CCBs to Budget and Development Committee through the CCB official. Approval of the Annual respective Council. Budget by the

January to November October 15th

2.

3.

December 15th

4 5.

March 1st March 15th

April

7. 8

End of June 1st week of July

Intimation of approval/non-approval of the project proposals to CCBs by the concerned CCB official. Implementation of approved project by the CCBs as per project agreement.

As in agreement and approved project document

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FOURTH SCHEDULE

CCB FORMS

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CCB Form - 1 [See Rule 105] [NAME OF REGISTRATION AUTHORITY] CONFIRMATION OF NAME This is to confirm that the name proposed by you for the Citizen Community Board, namely: __________________________; is available. ________________________________ Date of issue: ________ (Sign & Stamp Authority) of Registration

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CCB Form - 2 [See Rule 107] [NAME OF CCB] REGISTER OF MEMBERS Part-A: List of Executive Committee Educatio Name of n/ Member Residen Professio & tial nal Parenta Address Qualificat ge ion Present Occupati on and Business address Date of Appoint ment to Executiv e Committ ee

Seri al No.

National I.D. Card No.

Membership of other voluntary organization

Part-B: List of Founder members Name of Member & Parentag e Resident ial Address National I.D. Card No. Membership of other voluntary organization

Serial No.

Present Occupation and Business address

Part-C: List of members Name of Member & Parentag e Resident ial Address National I.D. Card No. Present Occupation and Business address Membership of Date of other Subscripti voluntary on organization

Serial No.

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CCB Form - 3 [See Rule 107] [NAME OF REGISTRATION AUTHORITY] CERTIFICATE OF REGISTRATION Registration No. ______ This is to certify that [NAME OF CCB ] with its official address at [ADDRESS ] has been registered as a CCB under the [SBNP] Local Government Ordinance (Ordinance No. [ ] of 2001), 2001 and the [SBNP] Local Government Citizen Community Boards Rules, 2002. This certificate is valid only for [NAME OF DISTRICT] District. _________________ Date of issue:_______ Authority] [Signature and Stamp of Registration

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CCB FORM 4 [See Rule 114 and 115] PROJECT PROPOSAL I. 1. 2. 3. 4. 5. II. Profile of CCB.Name of CCB -----------------------------

Address with telephone No. of CCB ----------------------------Registration No. Date of Registration District of Registration -------------------------------------------------------------------------------------

Implementation Arrangement for the Project.Ownership of project 1. 2. Management of Project (Government or CCB) (Government or CCB or Joint)

Capacity to implement the current proposal(i) (ii) (iii) (iv) Professionals support staff previous experience other

III.

Proposed Project Profile.1. 2. 3. 4. Name of Project --------Commencement Date of Project -----------------------------------Completion Date of Project -----------------------------------Location/Geographic Area Covered by the Project -------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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5.

Main Sector/Sub-sector ------------------------------------------------------

-----------------------------------------------------------------------------------------6. Main Objectives (What does the project aim to achieve?) ---------

-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------IV. Project Activities.(Inputs/Outputs/ Work Plan) Sr. No Activity Start Date End Date Targets Units

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February 17,

Provide Details/Explanation of Work Plan on Separate sheet V. Community Participation Component in the Project.a) How was the community identification/preparation of project proposal? involved in need

b) How do you propose to involve the community in project implementation?

c) this project?

How will the community be involved after completion of

VI.

Project Management by CCB.How will you manage and monitor Inputs, Outputs, workplan, and Impact of the Project. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------147

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February 17,

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Explain the record keeping and reporting system. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------VII. Financial Summary of Project.Rupees Cash a. Anticipated sources of funding.CCBs own resources ------------------------------------------Proposed grant from local government ------------------------------------------Total b. Total Cost of Project.-----------------------------------------Kind Total

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Development Costs/One Time Cost ------------------------------------------Yearly recurrent cost after completion of project ------------------------------------------Salary ---------Non-salary ------------------------------------------c. Sources of funding of recurring cost.CCBs own resources ------------------------------------------Proposed grant from local government ------------------------------------------Project Revenues (Expected) ------------------------------------------Total VIII. -----------------------------------------Proposed Costs / Budget of the Project.---------------------------------

ALL YEARS Sr. # 1 Budget Head/ Description DEVELOPMENT COSTS/ ONE TIME COSTS CCBs Own Contributi on Local Govt. Grant Other Contributio n Total

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2 2.1

RECURRENTCOSTS Salaries

2.2

Non Salary

TOTAL NOTE: SHOW ON A SEPARATE PAGE FOR EACH YEAR. SHOW DETAILS OF CALCULATIONS IX. Estimated Revenues of the Project.ALL YEARS Sr. No. Revenue Head/Description
150

Total

Budget Rules 2003

February 17,

1 2

TOTAL Note: Show the Detailed Calculations for Each Year Separately X Proposed Project Installment Schedule.SR NO. DATE AMOUNT

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Note Request For Installment Must Be Sent Atleast One Month In Advance And Must Be Accompanied With The Latest Progress Report.

XI

Proposed Progress Reporting Schedule.SR. NO. DETAILS OF REPORT DATE OF SUBMISSION

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February 17,

XII

Project Coordinator.Name of Project Coordinator Contact Address

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February 17,

XIII

ADMINISTRATIVE STEPS (FOR OFFICIAL USE).ACTIVITY Project proposal received by the CCB official. Project proposal submitted to the Budget and Development Committee. Comments received from Budget and Development Committee on the project proposal. Comments sent to the CCB. Project proposal resubmitted by the CCB to the CCB official. Project proposal resubmitted to the Budget and Development Committee. CCB informed of Council decision (after approval of Budget). Revised proposal submitted by CCB if changes requested by Council. Project started. Date and amount of installments paid. Progress reports submitted. Project completed. DATE

SR. # 1 2 3 4 5 6 7 8 9 10 11 12

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February 17,

CCB Form 5 [See Rule 120] Agreement This Agreement is made this [ ] day of [ ] at [ ] BY AND BETWEEN [NAME OF LOCAL GOVERNMENT] (hereinafter referred to as the local government) AND [NAME OF CCB] (hereinafter referred to as the CCB) WHEREAS, the CCB proposed, and the local government approved, the [NAME OF PROJECT] (hereinafter referred to as the Project). NOW, THEREFORE, the parties have mutually agreed to the following terms and conditions to carry out the Project in accordance with the provisions of the [SBNP] Local Government Ordinance, 2001 (Ordinance No [ ] of 2001)1. General.(i) The project duly approved by the local government shall constitute an integral part of this agreement. (ii) The local government has sanctioned Rs. [ ] (hereinafter referred to as the Grant) for the purposes of execution and implementation of the Project. (iii) The CCB hereby agrees and undertakes to execute and implement the Project as duly approved. (iv) The Project shall be completed within a period of [ ], commencing from [ ]. (v) The CCB shall submit to the local government, progress report(s) setting out the financial and physical status of the Project as per schedule given in the project proposal. 2 Liabilities.(i) Local government shall not be liable to any claim, debt, damage or demand arising out of execution or implementation of the Project. (ii) Local government shall not be liable for any compensation relating to death, disability or other hazards or personal injuries
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February 17,

caused to members of the CCB or its sub-contractors or volunteers of the CCB or any other person or property as a result of the activities carried out in connection with the Project. (iii) Nothing contained in this Agreement shall be deemed a waiver, express or implied, or immunity from suit or legal process of any privilege, exemption or other immunity enjoyed by the local government. (iv) In the event the Project is not carried out in accordance with this Agreement or the provisions of the Ordinance, the local government may, in addition to any other remedy available under law, cancel this Agreement and terminate disbursement of the outstanding portion of the Grant. In such eventuality, the property or assets of the in respect of the Project shall pass to the local government, as provided in the Ordinance. 3 Confidentiality.Contents of this Agreement are not confidential. Either party may provide any person interested in knowing the status or affairs relating to the implementation of the Project such information. 4 Sustainability.The CCB shall initiate necessary steps for active and efficient community participation in Project design, execution, operation and monitoring. IN WITNESS WHEREOF THE undersigned being duly authorized have signed this Agreement on the date first written above. For and on behalf of the Local government Witnesses 1. 2. [] [] For and on behalf of the CCB

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February 17,

CCB FORM 6 [See Rule 120] Request for Transfer of Installment The CCB official Local government __________ Subject: REQUEST FOR TRANSFER OF INSTALLMENT

It is requested that the [Number of installment] installment of Rs. [Amount] for the CCB may kindly be released as per installment schedule contained in the duly approved Project document. The latest progress report upto [date] of the Project is enclosed herewith for your kind perusal. With regards, Yours faithfully,

Secretary Citizen Community Board Address __________________

___________________________

Countersigned________________ Chairman Citizen Community Board

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February 17,

CCB FORM-7 [See Rule 122] Budget Re-appropriation CCB Project Profile Name of the CCB Reg. No. and Date Name of the Project Date of Commencement Date of Completion __________________________ __________________________ __________________________ __________________________ __________________________

BUDGET REAPPROPRIATION REQUESTED FROM Sr. # Accoun t Code/ Descrip tion Origin al Amount Expendit Budge to be reure to t appropri date Amou ated nt Rs. Accoun ts Code / Descrip tion TO Origin al Budge t Amou nt Rs. Revise d Amoun t Reasons for Reappropriatio n

Secretary Citizen Community Board Address __________________

___________________________

Countersigned________________ Chairman Citizen Community Board

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Date

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February 17,

CCB FORM - 8 [See Rule 123] Excesses and Surrenders (Fiscal Year_______________) CCB Project Profile Name of the CCB Reg. No. and Date Name of the Project Date of Commencement Date of Completion Excess and Surrenders Accounts Code Description of Approved Accounts Code Budget Actual Expenditur e Excesses/Surren ders __________________________ __________________________ __________________________ __________________________ __________________________

Total Secretary Citizen Community Board Address __________________ ___________________________ Countersigned________________ Chairman Citizen Community Board

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February 17,

FIFTH SCHEDULE [See Rule 116] RANKING OF CCB PROJECTS 1. The local government shall classify the schemes according to the priorities specified in the budget Call letter. The classification shall be developed on the following patternClassification of the sectoral priorities and funding allocation by the Council Priority 1 2 3 Sector Education Health Health Sub-Sector Girls schools Child & Women Basic & Rural Health Type of Schemes Up-gradation

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February 17,

Ranking and Selection of Schemes The proposals received by the cut-off date shall be ranked as followsThe CCB Official of the respective level of local government shall draw up a statement specifying the schemes by classification including the total amount of contributions for a particular classification of schemes. STATEMENT 1 CCBs CONTRIBUTIONS FOR GIRLS SCHOOLS CLASSIFICATION CCB PROJECT CCB SHARE % OF TOTAL CCB PROJECT (RANKING BASIS) CCBs SHARE RS

CCB 1 PROJECT

60

10000

CCB 2 PROJECT

55

30000

CCB 3 PROJECT

20

15000

CCB 4 PROJECT

20

10000

TOTAL FOR CLASSIFICATION GIRLS SCHOOLS

65000

A second statement shall determine contribution amounts for a particular classification of schemes as a ratio of the total contributions for all schemes registered with a particular local government for that year and the statement shall be used to determine amounts of allocations for a classification of schemes from the budget reserved for the purpose.

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STATEMENT 2 CCBs CONTRIBUTION BY CLASSIFICATION CLASSIFICATION OF SCHEME GIRLS SCHOOL CHILD & WOMEN BASIC & RURAL HEALTH CCBs SHARE IN CLASSIFICATIO N 65000 35000 20000 % Total Contribution by CCBs (RATIO)

54 29 17

TOTAL FOR CLASSIFICATION

120000

100

BUDGETARY ALLOCATION BY CLASSIFICATION OF SCHEMES TOTAL BUDGET FOR THE YEAR RS. 1 Million CLASSIFICATION OF SCHEME CCBs SHARE IN Total Allocation for the year CLASSIFICATION (RATIO)

GIRLS SCHOOL CHILD & WOMEN BASIC & RURAL HEALTH TOTAL FOR CLASSIFICATION

54 29 17 100

540,000 290,000 170,000 1,000,000

A third statement shall be drawn up, which shall identify the number of schemes registered in a particular classification, beginning with the scheme containing the highest contribution by the Citizen Community Board in a classification until all the schemes in the classification are selected or the funds allocated for that particular classification in the amount determined in the second statement are exhausted.

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February 17,

STATEMENT 3 FUNDS ALLOCATION BY CCBs PROPOSALS FOR GIRLS SCHOOL CLASSIFICATION TOTAL FUNDS FOR SUB-SECTOR RS. 540000 CCB PROJECT CCB SHARE % TOTAL OF TOTAL PROJECT CCB PROJECT RS (RANKING BASIS) LOCAL GOVT. CUMULATIVE CONTRIBUTION LOCAL GOVT. FUNDS REQUESTED REQUESTED RS.

CCB 1 PROJECT

60

500000

200000

200000

CCB 2 PROJECT

50

300000

150000

350000

CCB 3 PROJECT

20

200000

160000

510000

CCB 4 PROJECT

20

100000

80000

590000

The funding is available for the first three Projects.

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