Handbook for Drawing and Disbursing Officers (DDO Code)

DDO Code Handbook—titled A Hand Book for Drawing & Disbursing Officers in the supplied copy—is a compendium of financial and service-related instructions for officers responsible for drawing and disbursing public funds. Its Foreword describes the DDO’s role in managing public money and controlling expenditure. The Preface explains that the handbook was revised to bring together amendments, circulars and instructions and to support the proper disposal of official work as well as the training of new entrants to government service.

DDO Code Handbook: Purpose and Scope

The handbook brings together instructions from the General Financial Rules, Treasury Rules, Fundamental Rules, Supplementary Rules, Pension Rules, General Provident Fund rules, financial delegation provisions, and Benevolent Fund and Group Insurance rules. It is intended as a working reference for financial administration in government offices, particularly for the handling of receipts, expenditure, bills, accounts, records, employee-related payments and audit requirements. Separately, the Establishment Division’s Year Book 2022-23 describes PPARC’s manuals and publications functions, including the compilation and revision of administrative codes and manuals. The book also explains the wider system within which a Drawing and Disbursing Officer works. Public money must be received, held, spent, recorded and reported under the authority of the applicable laws, rules, sanctions and departmental instructions. The handbook treats financial accountability and proper record-keeping as essential parts of public administration.

Organization and 12 Chapters Covered

The DDO Code Handbook is arranged in twelve chapters:

1. Chapter I – Introduction to Financial Administration: Public finance, public income and expenditure, fiscal policy, accountability, administrative and parliamentary control, accounting and audit.
2. Chapter II – Budget: Budget preparation and administration, constitutional financial procedures, grants and appropriations, distribution of funds, expenditure control, surrender of savings, re-appropriation and supplementary grants.
3. Chapter III – Audit: The functions and powers of the Auditor-General of Pakistan and the general principles and purposes of audit.
4. Chapter IV – Federal and Provincial Accounts: The separate Public Accounts of the Federal and Provincial Governments and the systems used for government receipts, payments, custody and accounting adjustments.
5. Chapter V – General Financial Rules: Receipt and withdrawal of public money, financial propriety, expenditure control, contracts, sanctions, establishment matters, service books, contingent expenditure, permanent advances, stores, works, grants-in-aid, loans and advances.
6. Chapter VI – Treasury Rules of the Federal Government: Government cash, receipts, deposits, withdrawals, bills, pay and allowances, deductions, payments, safeguards, payroll and contingent claims.
7. Chapter VII – Fundamental Rules: Conditions of service, pay fixation, increments, transfer, leave, suspension, retirement and related service matters.
8. Chapter VIII – Supplementary Rules: Allowances, joining time and travelling allowance, including journeys by rail, road, air and other modes and the scrutiny of travel claims.
9. Chapter IX – Pension Rules: Types of pension, qualifying service, pension calculations, family pension, nominations, commutation and the preparation and disposal of pension cases.
10. Chapter X – General Provident Fund (Central Services) Rules: Fund accounts, subscriptions, nominations, interest, advances and final withdrawal of accumulated balances.
11. Chapter XI – Financial Powers and Delegation to Subordinate Authorities: Sanction of expenditure and delegation or re-delegation of financial powers.
12. Chapter XII – Benevolent Fund and Group Insurance: Subscriptions, beneficiaries, nominations, claims, grants and insurance-related benefits.

Financial Accountability and Control of Public Expenditure

The General Financial Rules section emphasizes that public money may be spent only under proper authority and within the available grant or appropriation. Officers dealing with public funds are expected to apply prudence, ensure that expenditure serves an authorized public purpose, avoid unnecessary spending and keep themselves informed of actual expenditure as well as commitments and liabilities. The handbook also stresses the responsibility attached to signing or countersigning a bill, statement or certificate. An officer who certifies information is responsible for its accuracy to the extent that it is the officer’s duty to know or verify it. Internal checks, account inspections and cooperation with the audit authorities are presented as safeguards against mistakes, irregularities, waste and loss of public money or stores. For current institutional information about the Auditor-General’s oversight and public-accountability role, consult the official Auditor-General of Pakistan website.

Government Receipts, Cash Book and Treasury Operations

The handbook explains that government receipts should be brought to account without delay and credited to the appropriate government account. Money received in an official capacity for a separate authorized fund is to be accounted for separately under the rules governing that fund. The instructions also cover the issue of receipts and the documentation required when money is deposited into a treasury or bank. For offices handling government cash, the Treasury Rules section describes the maintenance of a cash book, including prompt recording of transactions, checking and closing entries, verification of the cash balance and certification of the monthly closing balance. It discusses safeguards for the custody and handling of cash and the reconciliation of cash-book entries with treasury receipts, challans and bank records.

Preparation and Scrutiny of Bills

The handbook treats a bill as a formal claim against government funds. It covers the preparation and presentation of claims, prescribed bill forms, signatures and countersignatures, pay orders, duplicate bills, payment methods and safeguards such as specimen signatures. It also explains checks to be applied before payment, including the authority for the claim, the identity and entitlement of the payee, the supporting documents, the correctness of calculations and the availability of funds under the proper head of account. Pay and establishment matters include monthly pay bills, deductions, first payment of pay and allowances, payment when an employee leaves service, cases involving a deceased payee and computerized payroll. The handbook also addresses audit objections, recoveries and the maintenance of records relating to retrenchments and overpayments. These procedures are intended to ensure that payments are made to the persons entitled to receive them and are supported by proper documentary evidence.

Contingent Expenditure and Supporting Records

The General Financial and Treasury Rules sections cover contingent expenditure, permanent advances or imprests, contingent registers and the preparation of contingent bills. The drawing officer is expected to ensure that the expenditure is necessary, covered by the sanctioned budget and drawn only when it is required for immediate disbursement or to recoup an authorized advance. The handbook cautions against drawing money in anticipation of demand or merely to prevent a budget grant from lapsing. It also explains the need to maintain a contingent expenditure register with details such as the payment date, payee, sub-voucher reference and amount. Bills are to be checked against the register and supporting vouchers. The text discusses cancellation of vouchers to prevent their reuse and their retention for audit. The applicable retention period and procedure should be checked against current departmental instructions before records are destroyed.

Contracts, Procurement, Stores and Works

The handbook includes general principles for contracts and financial sanctions, together with procedures relating to the purchase and acquisition of stores. Its coverage includes receipt and inspection of stores, their issue, custody and accounting, physical verification, and sale or disposal. It also addresses works, grants-in-aid, loans and advances. These sections provide a framework for maintaining traceable records and ensuring that public purchases, property and payments remain within the authority and controls applicable to the office.

Service Matters, Leave and Travelling Allowance

The Fundamental and Supplementary Rules sections cover matters that affect employees’ service records and payments, including pay fixation, increments, transfer of charge, date of birth, service books, leave applications and leave accounts. They also discuss different kinds of leave, leave salary, joining time, allowances and foreign service. The travelling allowance material addresses journeys on tour and transfer, mileage and daily allowances, travel by rail, road, sea or air, and related claims. The handbook describes the checks expected of a controlling officer before signing or countersigning a travelling allowance bill, including scrutiny of the necessity and duration of the journey, distances claimed and the admissibility and reasonableness of the expenses.

Pension, Provident Fund and Employee Benefits

The Pension Rules chapter covers pension classifications, qualifying service, emoluments used for pension, family pension, commutation, nominations and the steps involved in preparing and processing pension papers. It also discusses service verification, service books, retirement lists and measures intended to avoid delays in finalizing pension cases. The General Provident Fund chapter addresses subscriber accounts, subscriptions, nominations, interest, advances and final withdrawal. The Benevolent Fund and Group Insurance chapter discusses subscriptions or premiums, nomination of beneficiaries, applications and the payment of grants or sums assured. The rules and procedures described in these chapters should be read with the current scheme and instructions applicable to the employee concerned.

Delegation of Financial Powers

The final chapters explain the importance of obtaining expenditure sanctions from an authority that has been granted the relevant power. They cover delegation and re-delegation to subordinate authorities and the principles governing sanctions and advance payments. A DDO should therefore distinguish between the authority to draw or disburse an amount and the authority to approve the underlying expenditure; the applicable delegation and departmental orders must be checked for each transaction.

Important Scope and Use Note

The handbook is a consolidated reference, not a substitute for the laws, rules, notifications or departmental orders currently in force. The supplied copy does not state a clear publication date or reference number. In addition, some sections are expressly headed Treasury Rules of the Federal Government and General Provident Fund (Central Services) Rules, while Chapter IV discusses both Federal and Provincial Accounts. Government officers should therefore verify later amendments and apply the rules, schedules, financial powers and service instructions relevant to their own government, department and service before taking action. The original DDO Code Handbook PDF is available for consultation. Browse other materials in the Rules & Regulation resources section.