Section 112 in The M.P. Municipal Accounts Rules, 1971
112.
(1)Save as provided in Rule 113 of these rules and rules made under Sections 86 and 95 of the Act, advances from the Municipal Fund shall ordinarily not be given. However, the President may sanction an advance for any of the following purposes which shall be expressly specified in the sanction :-(i)conducting of cases instituted in Court on behalf of or against a Municipal Council;(ii)Purchase of fodder;(iii)Any other purpose incidental to the duties of the Municipal Council under the Act or the rules or bye-laws made thereunder which the Collector may, for reasons to be recorded, declare to be one for which a cash advance is unavoidedly necessary.(2)No advance shall be drawn unless expenditure is likely to be incurred within one month and on no account shall any advance diverted to a purpose other than that for which it has been sanctioned except with the express permission of the competent authority.(3)All advances shall in the first instance be charged to the head "Advances" and accounted for in Form No. 73 (Advance ledger), a separate page being allotted to the account of each person who holds an advance. Entries in this ledger in respect of the advance and its adjustments whether by repayment in cash or by work bill shall be made immediately the transaction takes place under the signature of the Accounts Officer and if there is no Accounts Officer, of the Chief Municipal Officer. Adjustment of work bill shall not be made unless such bill as has been accepted and duly passed by the competent authority who will record in it an order stating the amounts to be adjusted.(4)No advance shall be made to a Councillor for the execution of a work or purchase of articles. All payments on this account shall be made either out of permanent advance or by cheques drawn in the name of actual payee.(5)Payment of a fresh advance for the purpose of repaying the one which is outstanding is strictly prohibited.(6)The accounts in the advance ledger shall be balanced quarterly and signed by the Accounts Officer and if there is no Accounts Officer by the Chief Municipal Officer, who shall at the same lime satisfy himself that steps are being taken to adjust outstanding advances. At the close of every quarter a list of outstanding advances in Form 74 shall be prepared and laid before the Finance Committee, and if there is no Finance Committee, before the Standing Committee.Permanent Advance
