(3)Handling of private funds. - The following instructions for handling of private funds by Government servants should be observed very carefully:-(i)Accounts of funds belonging to private persons and local bodies should be kept entirely separate from those of Government funds. For this purpose a separate cash-book for private funds should be maintained on exactly the same lines as the main cash-book for Government moneys.(ii)All cheques received by post and all money orders should be immediately entered in the proper cash-book under the initials of the head of the office or institution.(iii)The head of the office or institution should keep the cheques in his personal custody, and should cash them as soon as disbursement has been arranged. The amounts should be disbursed the same day as the cheques are cashed. If any payee after due notification is absent on the day of disbursement, his money should be sent by money order the same day as the cheque is cashed.(iv)Bills of local firms should be paid in the presence of the head of the office or institution. As regards outside firms, money orders should be sent the same day as the cheques are cashed under the signature of the head of the office or institution.(v)The head of the office or institution should as far as possible entrust the work connected with private funds to his accounts clerk, who will have furnished a security in respect of Government funds placed in his charges.(vi)All amounts received in cash should also be entered in the proper cash-book immediately on their receipt and the amounts deposited as far as possible on the same day in the State Bank or where there is no such bank in any other bank. A receipt in Form I given at page 265 of the Financial Hand Book (Volume V) should be issued for all amounts received.(vii)Private moneys taken as deposits or securities and refundable to the private persons concerned should be deposited in the Post Office Savings Bank and the Pass-book should be hypothecated in favour of the head of the office or institution concerned.(viii)All officers concerned should supervise the accounts of private moneys as strictly as those of Government funds, as they are personally responsible for their custody and disbursement.
