DDO Handbook Updated 2009

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Throughout the public sector in Pakistan, Drawing and Disbursing Officers (DDOs) play a pivotal role in the system of Public Financial Management at the operational level. Under the Treasury and Financial Rules, head of the office, irrespective of post and scale, is the DDO of his office. However, the head of the office may delegate this task to a subordinate officer of his office who works as DDO for him. The basic functions, among others, of the DDO include preparation of budget estimates of expenditure and receipt, preparation and submission of claim vouchers (bills) to the accounts office for withdrawal of cheques, disbursement of cheques/cash to staff, vendors and service providers, reconciliation of expenditure figures with the accounts office.

It is obvious from the above that DDOs have at their disposal, government funds required to be spent in accordance with the relevant financial rules. A glance at important functions of a DDO makes it clear that knowledge of government’s financial discipline is crucial for discharge of these responsibilities in a judicious manner. A DDO therefore, needs to have a clear understanding of financial rules and procedures. In addition DDOs also need to be aware of the principles involved in budget preparation and management, preparation and reconciliation of accounts and preparation of statements of excesses and surrenders. Government Officers who primarily belong to departments such as education, health, engineering, forestry, agriculture etc. may at times lack knowledge of financial rules as well as skills to work as DDOs. However, despite this, they have to perform the functions of a DDO in addition to their primary responsibilities as teacher, doctor or agriculturist. Very few amongst them receive formal training to act as DDOs.

The available books of relevant rules are rarely updated. As a result, DDOs find it very hard to understand financial rules and consequently remain inadequately acquainted with necessary financial rules and other regulations. This lack of knowledge acts as a disincentive to incur even valid expenditures with resultant inefficiencies. Moreover, post devolution changes and amendments in the financial rules especially after the enforcement of the New Accounting Model (NAM) in the District Account Offices have created an even greater need for having user friendly reference material. Under the current set-up, the complexity and scope of work of the DDOs has increased considerably. Keeping in view the above, USAID Pakistan’s Districts That Work (DTW) project ventured and developed a guidebook for DDOs.

Main Contents of DDO Handbook Updated 2009

Roles & Responsibilities of DDO

  • Who is a DDO?
  • Documentation on Assumption of Charge as DDO
  • Punjab Government’s Letter Regarding Responsibilities of DDO


  • Function of Drawing and & Disbursing Officer Relating to Budget
  • Budget Classification
  • The Budgetary Process
  • Estimates of Receipts
  • Estimates of Current Expenditure
  • Statement of New Expenditure (Current Budget)
  • Expenditure Management
  • Receipts Management
  • Recording of Disbursements by DDO
  • Reconciliation of Expenditure
  • Expenditure Statement
  • Required In case of Likelihood of Excess Expenditure of Excesses and Surrenders
  • Re-appropriation of Funds
  • Revised Estimates and Supplementary Grants

Receipt and Payment of Public Money

  • Principles Regarding Receipt of Money
  • Withdrawals of Money from the Public Account
  • Standards of Financial Propriety
  • Location of Public Money
  • General Instruction for Handling Cash
  • Grant of Receipt to the Payer and Procedure of Acceptance of Cheques
  • Procedure of Paying Public Money
  • Payment on Quitting the Service
  • Specimen Signature

Contracts Procurement and Stock Taking

  • Contracts – General Principles
  • Contracts
  • Tenders
  • Invitation of Tenders and Procurement Rules
  • Response Time
  • Disqualification of Suppliers and Contractors
  • Blacklisting of Suppliers and Contractors
  • Principle Method of Procurement
  • Submission of Bids
  • Bidding Documents
  • Bid Security
  • Extension of Time for Submission of Bids
  • Opening of Bids
  • Clarification of Bids
  • Discriminatory and Difficult Conditions
  • Rejection of Bids
  • Re-bidding
  • Announcement of Evaluation Reports
  • Procedure of Open Competitive Bidding
  • Acceptance of Bids
  • Performance Guarantee
  • Limitation on Negotiations
  • Confidentiality
  • Direct Contracting
  • Negotiated Tendering
  • On Account Payment
  • Record of Procurement Proceedings
  • Redressal of Grievances by the Procuring Agency
  • Purchase, Stock Taking and Issue of Stores
  • Receipt of Stores
  • Issue of Stores
  • Transfer of Charge of Stores
  • Accounts of Stores
  • Physical Verification

Sanctioning of Expenditure

  • Power of Sanctions
  • Communication of Sanctions
  • Indication of Source of Appropriation in Sanction Order
  • Retrospective Sanction

Permanent Advance

  • Procedure to Draw Permanent Advance
  • Enhancement of Permanent Advance
  • Classification
  • Closing of Permanent Advance


  • Maintenance of Service Book
  • Excess Appointment in Lower Unit/Cadre Against Vacancy in Higher One
  • House Building and Conveyance Advance
  • Computerization of Payrolls
  • Duties & Responsibilities of DDO Regarding Computerization of Payrolls
  • Computer Changes
  • In-active/Stoppage of Pay
  • Transfer In and Out of Payroll to Other Circle in SAP System
  • Foreign Service
  • Pension Contribution with Object Classification Code

Joining Time

  • Joining Time
  • Calculation of Joining Time
  • Pay and Allowances During Joining Time

Preparation and Submission of Claims

  • Due Date of Submission of Claims
  • Deduction and Recoveries from the Claims
  • Attachments (Court and Debt) from the Pay & Allowances
  • Deductions of Income and Sales Tax
  • Duplicate Copies of Bills
  • First Payment of Pay and Allowances
  • Refund of over Payments
  • Arrears Claims

Travelling Allowance

  • Definitions
  • Kind of Travelling Allowances and Admissibility
  • Travelling Allowance on Tour, Transfer and Retirement
  • Tables of Rates and Categories of Employees
  • Misc. TA Rules

Fixation of Pay and Pay / Service Verification

  • Pay Fixation on Initial Appointment
  • Annual Increment
  • Increment During Year of Retirement
  • Annual Increment as Personal Pay on Reaching Maximum of Pay Scale
  • Fixation and Presumptive Fixation on Promotion
  • Combination of Appointment
  • Current Charge / Pay of Higher Post
  • Pay Fixation on Imposition of Penalties
  • Pay Fixation and Pay Verification by Accounts Officers

Leave Rules and Leave Account

Procedure Regarding Operation of Vehicles

  • Log Book
  • Movement Register
  • Requisition/Duty Slip
  • Misc Rules

General Provident Fund

  • Monthly Subscription and Refund of Withdrawal
  • Interest of GPF Balances
  • Transfer of GPF Balances
  • Advances from the GPF Balances
  • Refundable Advances
  • Non-Refundable Advances
  • Final Payments on Quitting Services

Pension Rules

  • Basic Condition of Service for Grant of Pension
  • Minimum Service for Grant of Gratuity and Pension
  • Classification of Pension
  • Qualifying and Non-Qualifying Periods of Service
  • Emoluments Reckon-able for Pension
  • Pension Papers-Checklists
  • Pension Contribution and Share
  • Assistance Package for Families of Government Employees (Federal Govt.) Who Die in Service

Mode of Payment

  • Pre-audit System – as per NAM / SAP
  • Manual / Legacy System
  • Issuance of Cheques in Lieu of Lost and Time Barred Cheques etc
  • Establishment and Working of Assignment and
  • Personal Ledger Accounts (Special Drawing Accounts)
  • Accounting Policies
  • Recording of Expenditure
  • Procedure Under NAM

Bookkeeping and Reporting

  • Maintenance of Cash Book
  • Procedure of Recording Entries
  • Entries of Disbursement out of Permanent Advance
  • Corrections Entries in Cash Book
  • Closing of Cash Book and Carry Forward of Un-paid Balance
  • Requisite Certificates on Closing of Cash Book
  • Expenditure Statement
  • Reconciliation Statement
  • Nature of Variations and Settlement of Variations
  • Illustration
  • Refund of Expenditure During / After Close of the Fiscal Year
  • Important Classification Codes

Naeem Javid

Naeem Javid Muhammad Hassani is working as Deputy Conservator of Forests in Balochistan Forest & Wildlife Department (BFWD). He is the CEO of Tech Urdu (techurdu.net) Forestrypedia (forestrypedia.com), All Pak Notifications (allpaknotifications.com), Essayspedia, etc & their YouTube Channels). He is an Environmentalist, Blogger, YouTuber, Developer & Vlogger.

One thought on “DDO Handbook Updated 2009

  • A.A I Muhammad Younas Accounts officer / Asstt Manager Corporate Accounts from Wapda, checked and read the book of DDO very deeply. I have observed that this has provided the complete of assignments of Drawing and disbursing officer.


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