1998 ED5TI0N

FOR OFFICIAL USE ONLY

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MANUAL OF ACCOUNTING PROCEDURE

PART I GENERAL

(Common to all the three Schemes)

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Employees' Provident Fund Organisation

(Ministry of Labour, Government of India)
Head Office:

Bhavishya Nidhi Bhawan, 14, Bhikaji Cama Place, New Delhi 110 066
*

PREFACE TO THE UPDATED EDITION

The existing Manual of Accounting procedure was last updated in the year, 1982.
Since then a large number of amendments have taken place in the accounting procedure
as well as in the Employees Provident Funds & Miscellaneous Provisions Act 1952 and
the schemes framed thereunder. Apart from this, on the introduction of the
computerisation, certain work areas of the accounts wing were computerised.

a new scheme i.e. Employees Pension Scheme, 1995

was introduced in place of Employees Family Pension Scheme, 1971. Since there was
Further, in the year, 1995

no codified Manual for Employees Pension Scheme, 1995 and no laid down procedure
for disbursement of Pension through disbursing agencies, it was thought that there is a
dire need to update the existing Manual by taking into account various aspects relating to
maintenance of accounts through computerisation and also to operate the Employees'
Pension Scheme, 1995.
Keeping above in view, a Committee of Officers Think Tank was set up by the
Head Office to go into the detailed procedure of work areas for updating the existing
Manuals and to draft fresh Manuals for Employees Pension Scheme, 1995 and also for
disbursement of Pension.
1.
The Committee after going into detailed procedure relating to the entire work area
of the Accounts Wing updated the earlier Manuals and drafted two fresh parts of the
Manual i.e. Employees Pension Scheme, 1995 and disbursement of pension through

Nationalised Banks.
2.

The updated Manual contains four parts viz:

Part -I
Part - II

Part -III

Dealing with provisions relating to the schemes in General.

(A)

Dealing with the provisions relating to Employees Provident Fund

Scheme, 1952.

(B)

Dealing with the Provisions relating to Employees Deposit Linked

Insurance Scheme, 1976.
Dealing with the provisions relating to the Employees Pension
Scheme, 1995.

Part -IV

Dealing with the provisions relating to disbursement of Pension

through Nationalised Banks.

3.
These parts of updated edition of Manual were placed before the Central Board of
Trustees, Employees Provident Fund in its 147lh meeting held on 02.12.97 and the
Board accorded approval for its adoption. Although the Manual is primarily intended to
provide guidance on accounting matters, important features of the Act and the Schemes
have also been incorporated to facilitate decisions by the Staff and Officers. Every effort
has been made to make the Manual as comprehensive and useful as possible to improve
the operational efficiency. We trust that the Manual will serve as a useful guide to those
dealihg with Accounts & other work areas relating Jo Employees' Provident Fund &
Miscellaneous Provisions Act, 1952 and the Schemes framed thereunder in Head Office
and the Regional/Sub-Regional Offices.
Employees Provident Fund, Organisation expresses sincere gratitude to
Dr. L. Mishra, Secretary (Labour), Government of India for his continuous encouragement
and advice for this task.
4.

Suggestions for improvement will be welcome.

Sd/-

Sd/-

(S.K. RAY)

(R.S. KAUSHIK)

FINANCIAL ADVISOR & CHIEF ACCOUNTS OFFICER

CENTRAL PROVIDENT FUND COMMISSIONER

Employees' Provident Fund Organisation,

Bhavishya Nidhi Bhawan,
14, Bhikaiji Cama Placs,

New Delhi - 110 066.

MANUAL OF ACCOUNTING PROCEDURE

PART- I

GENERAL

( Common to all the three Schemes )

SI. No.

Chapter No.

Tabic of contents

Administration of IIPI: & MP Act,

1952 and the Schemes

2.

General Office procedure

3.

Duties and functions

4.

Securing compliance and Audit scrutiny

5.

Levy of penal damages

6.

Funds Management (Banking

7.

Cash Branch

8.

Investment . etc.

9.

Budget

10.

Balance-Sheet-

10

11.

SPF, Pension & Group Insurance Scheme

11

12.

Management Information System

12

SI. No.

Chapter No.

Table of contents

13.

Computerised system of Accounts

13

1.4.

Audit

14

15.

Public Grievances Handling System

15

16.

Suggestion Scheme

16

17.

Forms/ Proformac.

17

CHAPTER

ADMINISTRATION OF EMPLOYEES' PROVIDENT FUNDS &

MISCELLANEOUS PROVISIONS ACT, 1952 & THE SCHEMES:

SI. No.

CONTENTS

OBJECTIVE

2.

ADMINISTRATIVE SET UP

Para

Page No.

1.1.

1/1

1.2.

1/1

3.

CENTRAL BOARD

1.2.1.

1/1

4.

REGIONAL COMMITTEE

1.2.3.

1/1

5.

INVESTMENT COMMITTEE

1.2.4.

1/2

6.

CENTRAL OFFICE

1.2.5.

1/2

7.

REGION

1.2.7.

1/2

8.

ENFORCEMENT OF ACT

1.3.1.

1/3

9.

FUNDS MANAGEMENT & ACCOUNTS

1.4.1.

1/3

10.

EPFO CHART

1.4.3.

1/4

1
CHAPTER 1
ADMINISTRATION OF EMPLOYEES* PROVIDENT FUNDS &

PROVISIONS ACT. 1952 & THE SCHEMES:

1.1.1. The Employees' Provident Fund Organisation came into being following an
enactment of the Employees' Provident Funds & Miscellaneous Provisions Act, 1952 in the
year, 1952. The objectives of the organisation is to extend social security benefits to the
working class in the form of Provident Funds, Pension and Insurance benefits. The broad
functions of the Organisation, to fulfil these objectives, are:a)

b)
c)

Enforcement of provisions of Employees' Provident Funds & Miscellaneous

\
Provisions Act, 1952.
Recovery & management of moneys held in Trust and
providing satisfactory service to the members of the Schemes.

1.1.2. The Employees' Provident Fund Organisation is vested' with the responsibility of
implementing three Schemes framed under the Act namely Employees' Provident Funds
Scheme, Employees' Pension Scheme and Employees' Deposit linked Insurance Scheme
which came into force with effect from 1.11 .52, 1 6. 1 1 .95 & 1 .8'.76 respectively. Employees'
Family Pension Scheme, 1971 framed under the Act, is ceased to operate with effect from
16.11.1995
1.2.

1.2.1. The three Schemes are administered by the Central Board ot trustees a Tripartite
Body consisting of a Chairman, a Vice-Chairman, 5 members representing Central
Government, 15 members representing State Govemements and 10 members each
representing Employers/Employees. The Central Provident Fund Commissioner is the
Ex-officio member of the Board.
1.2.2 The Board, in accomplishing this task, is assisted by Executive Committee,
constituted by Centra! Government on 1.7.90 and four Sub-Committees, constituted at
Central level, by Chairman, Central Board of Trustees, namely :
a)

b)
c)
d)

Finance and Investment Committee;

Committee on Exempted Establishment ;
Committee on Special Reserve Fund, and
Pension Implementation Committee.

1.2.3. To oversee the functioning and to recommend improvement in the implementation,

at Regional levei, the Central Board is assisted by Regional Committees.
(1/1)

The Regional Committee is constituted by Chairman. Central Board of Trustees on

Tripartite pattern by drawing representatives from Employers/ Employees and Government
functionaries at State level.

1.2.4. The Finance and Investment Committee functions to oversee the Investment being
done by the State Bank of India, to watch the collection and timely Investment of Trust
money with a view to realising maximum return thereon and to give such directions as may
be necessary in regard to Investment/ Re-Investment of redumption proceeds. Interest, etc.
within the broad Investment pattern as approved by the Central Government and to consider
fixation of Rate of Interest for the members of the Fund.
1.2.5. The Employees' Provident Fund Organisation is having its Head Quarters at New
Delhi (Central Office ) and 17 Regional Offices. In addition, as a measure of
decentralisation and with a view to extend the service nearer to the door steps of the
subscribers, Sub-Regional offices/Sub-accounts offices have been opened, which are under
the control of the Regional office. The Organisation also operate its Service Centers for the
benefit of the subscribers wherever the concentration of the subscribers are there. The net
work of the Organisaion include Inspectorate offices all over the country.

1.2.6. CENTRAL OFFICE :

In the Central Office of the Organisation, the Central Provident Fund Commissioner
is assisted by Additonal Central Provident Fund Commissioners, Financial Adviser & Chief
Accounts Officer, Director ( National Academy on Training & Research on Social Security)
/Vigilance/MIS/EDP, Law Officer, Senior Analyst, Deputy Director (Audit) ), Regional
Provident Fund Commissioners, Assistant Provident Fund Commissioners and other officers
and staff. He is also assisted by Additional Central Provident Fund Commissioner at Zonal
level having offices at Hyderabad, Mumbai & Calcutta. The Central Office is also having
its Internal Audit machinery spread in six different Zones.

1.2.7. REGIONS:
The Regional Office is headed by Regional Provident Fund Commissioner (Grade I)
in charge of administration and assisted by Controller of Pension and Regional Provident
Fund Commissioners holding the portfolio of Finance & Accounts, Exemption, Recovery,
Assistant Director (EDP), Assistant Provident Fund Commissioners and other Officers and
staff. Sub-Regional Office is headed by Regional Provident Fund Commissioner/Assistant
Provident Fund Commissioner & supported by Assistant Provident Fund Commissioner and
other officers and staff. Wherever the concentration of Industries and Labour forces is
there, in lieu of Sub-Regional Offices, the Organisation has opened Sub-Accounts office to
render efficient and prompt service to the subscribers in the matter of settlement of
accounts, grant of advance, issue of Annual Statement of Accounts, etc. Inspectorates are
headed by an Enforcement Officer with necessary supporting staff & functioning under the
charge of Regional/Sub-Regional Office. The Organisaton is having its own Training
Academy namely National Academy on Training & Research on Social Security with its
apex Institute at New Delhi and Zonal Training Institutes at Chennai, Faridabad, Calcutta
and Ahemdabad. Vigilance Wing of the Organisation is headed by the Chief Vigilance
Officer in the rank of Additional Central Provident Fund Commissioner (Hqrs.) who is
assisted by Vigilance Officer (Hqrs.) and Deputy Director (Vigilance) in four zones and

Vigilance Officers.
(1/2)

1.3
1.3.1. The Employees' Provident Fund and Miscellaneous Provisions Act, 1952 applies to
the whole of India except the State of Jammu & Kashmir (In the State of Sikkim, it came
into force with effect from 1.11 .95). The Act provides for ;
a)

b)
c)

d)
e)

0
g)

application of the Act to the establishment including on voluntary basis;

framing of Schemes by the Central Government;
constitution of Central Board of Trustees, Executive Committee, State Board
and its functions;
appointment of Officers & staff for administering the Schemes;
determination of Contribution from Employees/Employers, determination of
dues from Employers, to decide the dispute on applicability of the Act,
setting up of EPF Tribunal and appointment of Presiding Officers;
recovery of moneys due from Employers through Recovery machinery
powers of Inspectors, penal provisions on Defaulters, exemption from the
operation of the Schemes;
delegation of powers and functions of the Chairman of the Board to its
Officers for efficient administration of the Scheme, etc. The procedure
relating to various functions under Enforcement Wing of the Organisation
which mainly enforces the provisions of .the Act is dealt with in the
Enforcement Manual.

1.3.2. A separate Manual for the Enforcement officers is also provided for efficient
performance of the duties assigned to the Inspectors.
1.4.
1.4.1. The Accounts Wing of the Organisation is headed by Financial Adviser and Chief
Accounts Officer in the Central office assisted by Regional Provident Fund Commissioner
(Finance & Accounts) and Regional Provident Fund Commissioner (Investment), Deputy
Director (Audit) in the Central Office and Regional Provident Fund Commissioner (Finance
and Accounts) and Assistant Provident Fund Commissioner (Accounts) and other officers &
staff in the regions.
1.4.2. The system of accounts is being gradually switched over from manual operation to
computer operation. In order to provide system support, the Central
Office/Regional/Sub-Regional offices are equipped with EDP Centres wherein various
softwares are operated and reports generated for accurate and speedy action in the Finance
and Accounts Wing.

1.4.3. The Employees' Provident Fund Organisation Chart showing the set up of the
Central/Regional offices are given in the Annexure.

(1/3)

EMPLOYEES PROVIDENT FUND ORGANISATION

Organisation Chart

j"CENTRAL BOARD OF TRUSTEES]|

3/

COMMITTEE ON
PENSION IMPLEMENTATION
FINANCE & INVESTMENT
EXEMPTED ESTABLISHMENTS

EXECUTIVE COMMITTEE

SPECIAL RESERVE FUND

.JL

CENTRAL PROVIDENT FUND COMMISSIONER

REGIONAL COMMITTEE

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CENTRAL OFFICE. NEW DELHI

FA&CAO
Addl. CPFC (P&T)
Addl. CPFC (E&l)
Addl. CPFC (EDP)
Director (NATRSS)
Director (Vig./MIS./Computer)
Vigilance Officer
RPFCs/APFCs
Hindi Officer
Admn.)
(Local
RPFC
Chief Liasion
Law Officer
Officer (SC/ST)
Chief Engineer
Deputy Director (Audit/Vig.) Sr./Jr. Analyst
Jr. Engineer
Training Officer
Superintendents/
Zonal Audit Officer
Assistants

UDC/LDC/Gr. D

[ADDL. CPFCS (ZONAL)

REGIONAL PROVIDENT FUND COMMISSIONER -I
Sub-Regional

Regional

Office
RPFC I (Admn.)
RPFC (FA)
RPFC (Exm.)
RPFC (Recov.)
RPFC (EDP)

COP
APFCs
EDP Manager
E.O./AAOs
Section Supervisors
EDP Supervisor
Hindi Officer

UDC-LDC-Gr. D

<7

Office
RPFC In-charge
APFCs
EDP Manager
Hindi Officer
S
EDP Supervisor
EO/AAOs
Section Supervisor
UDC-LDC-Gr. D
PF Inspectorates
Sub-Accts. Office
Service Centres