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PRINCIPLES OF ACCOUNTING
IN NEW ACCOUNTING MODEL
23rd December, 2015
IMPLEMENTATION OF NAM
Article 170 of the Constitution empowers the Auditor
General of Pakistan to prescribe the form and manner
for keeping the accounts of the Federation, Provinces
and District Governments. Accordingly, New
Accounting Model (NAM) has been prescribed and
implemented with the approval of the President of
Pakistan
As the accounts follow the budgetary allocations,
therefore, from the FY 2005-06 the Punjab adopted the
NAM for Budget, both for the Provincial and District
Governments
Reliability, and
Timelines
in Governments financial reports at Federal, Provincial,
District and Sub-district levels. The information generated
in computerized environment under NAM would provide
direct support to Public Financial Management,
Accountability and Legislation oversight
Commitment Accounting
Assets Register
CHART OF ACCOUNTS
The Chart of Accounts provides a framework for
organizing accounting transaction and to provide a
number of views of a particular transaction.
The various views are indicated with elements
comprising of alpha and numeric characters.
The chart of accounts applies to all accounting entities
and contains following five elements
1. Entity
2. Function
3. Object
4. Fund
5. Project
ENTITY ELEMENT
The entity means the organizational structure or
unit which create the transactions.
The organizational highest level is Government &
lowest level is Drawing & Disbursing Officer (DDO)/
Collecting Officer (CO)
Agriculture
5002
DG Agri. (Extension)
5003
DG Agri. (Field)
5004
DG Agri. (Research)
5005
P 51 CM Secretariat
5025
DG Agri. (Water
Management)
CM Secretariat
P 52 CM Inspection
Team
P 53 Colonies Deptt.
5050
CM Inspection Team
5075
Colonies Deptt.
5100
Communication &
Works
5101
Chief Architect,
Punjab
5102
Chief Engineer
Building (North)
5103
Chief Engineer
Building (South)
5104
Chief Engineer
Highways (North)
5105
Chief Engineer
Highways (South)
FUNCTION ELEMENT
The economic function, relating to the provision of
a particular service, activity or Government
program. The function code have been designed
conforming
requirements
to
IMF
public
sector
reporting
02
03
Defense Affairs
04
Economic Affairs
05
Environment Protection
06
07
Health
08
09
10
Social Protection
01
Minor Function
011
Detail Function
0112
Sub Detail Function 011204
Financial Affairs
OBJECT ELEMENT
The accounting classification, describing the item
of expenditure, receipt, asset or liability. Each
accounting classification is further sub-divided
into a hierarchy, down to the level of detailed
object head.
Advances / Others
A 06 Transfers
A 07 Interest Payment
A 08 Loans and Advances
A 09 Expenditure on Acquiring of Physical Assets
A 13
A 14
Direct Taxes
Indirect Taxes
B 03
Non Tax-Receipts
C 01 Income from Property and Enterprise
C 02 Receipts from Civil Administration and
Other Functions
C 03
Miscellaneous Receipts
Recoveries of Investment
Recoveries of Loans and Advances
Debt
Assets
F 01
F 02
Receivables
F 03
F 04
F 05
Physical Assets
Investments
Other Assets
Trust Account-T&T
G 10
Trust Account-Other
G 11
G 13
G 14
Mint Account
Equity
H 01
Equities
A Expenditure
Major Object
Minor Object
A011 -Pay
Detailed Object
FUND ELEMENT
The pool of money from which budgetary
allocation is made (e.g. Consolidated Fund), and
is further sub-divided into grants (in the case of
Consolidated Fund) or Public Account detailed
heads.
FUND ELEMENT
FUND
Fun d could be either consolidated or Public
Account (C & P)
SOURCE
This indicates the source of Fund from where the
expenditure is being met. This could be Capital or
Revenue, denoted by 1or 2
SUB-FUND
This indicates whether the expenditure is voted /
charged. This also indicates whether the
expenditure
is Current, Development or Capital in nature
FUND ELEMENT
C
Consolidated
Capital
Fund
Revenue
Public Account
C - Consolidated Fund
2
Revenue, 1-Capital
1 - Voted current expenditure
018 - Agriculture
(PROVINCIAL)
GRANT NUMBER
PROJECT ELEMENT
Project is indicated by 4 Numeric characters,
allotted to each Development Project. The project
element enables transactions to be aggregated
and reported at a project level. Each project will
have a unique project number
FUNCTIONAL ARRANGEMENT
01 GENERAL PUBLIC SERVICE
011 EXECUTIVE & LEGISLATIVE ORGANS,
FINANCAL
0112 FINANCIAL AND FISCAL AFFAIRS
011205 TAX MANAGEMENT (CUSTOMS. I
TAX. EXCISE) AND TAXATION DEPARMENT
LQ4016 Superintendence
Thank You