Financial Rules · Contingent Expenditure

Contingent Expenditure – AP Financial Code & Treasury Rules

Meaning and classification of contingent charges, countersignature procedure, AC and DC bills, delegation of financial powers and present-day CFMS / e-procurement practice — for Government employees, DDOs, Controlling Officers, Treasury and Accounts staff, Heads of Offices and Audit Officers.

SOURCE: AP Financial CodeSOURCE: AP Treasury CodeCURRENT OPERATIONAL PRACTICE – CFMS / e-PROCUREMENT

Before acting on any limit on this page

Monetary limits, delegated powers and procedures shown here are taken from the Andhra Pradesh Financial Code / Treasury Rules material and the Government Orders listed below, several of which are historical. Please refer to the latest Government Order / Finance Department instruction before sanctioning expenditure or passing a bill.

What is Contingent Expenditure?Departmental Examples What is NOT Contingent Five Categories Countersignature Procedure AC Bill Procedure DC Bill Procedure Countersigned vs Non-Countersigned Statutory Rules on AC / DC Bills Delegation of Financial Powers CFMS & Modern Procedures Object Heads DDO Checklist Quick Reference

What is Contingent Expenditure?

SOURCE: AP Financial Code

"Contingencies" or "Contingent Charges" signifies the incidental expenditure necessarily incurred in running an office or public establishment. Along with personnel, an office needs administrative infrastructure, equipment and consumables — accommodation / rent, furniture, stationery, post and telecommunications, internet and IT peripherals, and power charges. Expenditure incurred on procuring, maintaining and running these services is classified under Contingencies in Government accounts.

Conventional sense

Unexpected or emergency petty payments that must be cleared without delay.

Government accounting sense

Regular, operational running expenditure of Government offices. Most contingent items are recurring and payable at monthly or periodical intervals.

Common Departmental Examples

SOURCE: AP Financial Code

Department	Typical Contingent Items
Police Department	Clothing, uniform equipment, secret service charges, rewards to informers.
Judicial Department	Court fees, fees paid to law officers / public prosecutors, process service charges.
Prisons & Correctional Services	Dietary charges, court production charges, raw materials for vocational manufacturing (mats, weaving, carpentry).
Colleges & Universities	Laboratory apparatus, chemicals, library books and journals.
Animal Husbandry Department	Livestock procurement, animal feed, raw materials for serum and vaccine production.

What is NOT Contingent Expenditure

SOURCE: AP Financial Code

Purchases of heavy machinery, specialised tools, plants and vehicles by engineering departments — Public Works, Roads & Buildings, Water Resources or Panchayat Raj — are not classified under Contingencies.

Heavy equipment such as excavators, earth-movers and specialised drilling rigs costs significant public funds.
Such equipment is acquired exclusively for specific projects.
These capital outlays are debited directly to the respective project work heads / capital sub-heads, not to office contingencies.

Five Categories of Contingent Expenditure

SOURCE: AP Financial Code

Overlapping classification

These categories are not mutually exclusive. An item may be a Special Contingency requiring prior Government sanction (for example, office shifting of Rs. 50,000/-) and simultaneously a Countersigned Contingency requiring the immediate superior authority's countersignature on detailed bills.

Countersignature Before Payment – Detailed Contingent Bill

SOURCE: AP Financial Code

DDO prepares bill in prescribed form

Attaches sub-vouchers & sanction orders

Forwards to Controlling Officer

Controlling Officer verifies necessity, budget & propriety

Countersignature affixed and bill returned

DDO submits to Treasury / PAO for disbursement

Scrutiny Checklist by the Countersigning Authority

Propriety and administrative necessity
Reasonableness and competitiveness of rates
Completeness of original stamped / digital sub-vouchers
Availability of specific budget appropriation under the relevant Object Head
Strict refund of unspent balances into the Treasury

AC Bill Procedure – Countersignature After Payment

SOURCE: AP Treasury Code

Where urgent funds are required in advance of detailed disbursement, the DDO draws funds on an Abstract Contingent (AC) Bill from the Treasury.

Need for urgent funds

AC bill prepared in APTC Form 57

Presented at Treasury without itemized sub-vouchers

Funds drawn and utilised

Paid sub-vouchers assembled

DC bill rendered for adjustment

Certificate on subsequent AC bills

Every subsequent AC bill presented after the 10th of a month must carry an explicit certificate that DC bills for all previous AC advances have been submitted.

DC Bill Procedure – Adjustment of AC Advances

SOURCE: AP Financial Code

Monthly DC bill prepared in APFC Form 8

Original paid sub-vouchers & unspent cash receipts attached

Submitted to Controlling Officer by the 10th

Controlling Officer scrutinises

DC bill countersigned

Transmitted to AG (A&E) for final adjustment

Unspent balances

Unspent balances must be strictly refunded into the Treasury as part of the adjustment.

Countersigned vs Non-Countersigned Contingencies

SOURCE: AP Financial Code

Dimension	Countersigned Contingencies	Non-Countersigned Contingencies
Supervisory Control	Subject to direct supervisory control and countersignature of the designated Controlling Officer.	Incurred entirely on the authority and personal responsibility of the DDO.
Bill Submission to Treasury	Submitted as Detailed Bills (after prior countersignature) or AC Bills (with post-payment DC bills).	Detailed fully-vouched contingent bill is submitted directly to the Treasury / PAO by the DDO.
Sub-Voucher Requirements	Original sub-vouchers for amounts exceeding Rs. 1,000/- are forwarded with the DC bill to the AG through the Controlling Officer.	Sub-vouchers exceeding Rs. 1,000/- are retained or enclosed directly with the treasury bill (Arts 102 & 108).
Account Adjustment	Settled through Accountant General (A&E) via detailed adjustment against previous AC advances.	Debited directly and finally against the budget head upon treasury passing.
Statutory Time Limits	DC bills must be submitted to the Controlling Officer not later than the 10th of the succeeding month.	Bills preferred within the current financial year or within 1 year before falling under arrear rules.

Statutory Rules on AC / DC Bills

SOURCE: AP Treasury Code

Article 102, APFC Vol-I and SR 18(d) under TR 16, APTC Vol-I

AC bills are preferred in APTC Form 57 at the Treasury without itemized sub-vouchers.
A monthly Detailed Contingent (DC) bill in APFC Form 8 must be submitted by the 10th of the following month.
Every subsequent AC bill presented after the 10th of a month must contain an explicit certificate that DC bills for all previous AC advances have been submitted.
As per contemporary Finance Department circulars and AG audit mandates, no new AC bill is passed by the Treasury / CFMS portal if prior AC bills drawn beyond the permissible adjustment period (typically 30–90 days) remain unadjusted.

Adjustment period

The permissible adjustment period referred to in contemporary circulars (typically 30–90 days) should be confirmed against the latest Finance Department instruction before relying on it.

Delegation of Financial Powers to HoDs & Field Offices

HISTORICAL / TRAINING REFERENCE

Heads of Offices and Heads of Departments exercise financial powers under APFC Vol. II, Appendix 7. These powers have been revised periodically through the following orders.

G.O.(P) No. 703

HISTORICAL / TRAINING REFERENCE

General Administration (AR&T.I) · 04-12-1978

Delegation of financial powers to Heads of Departments and field offices.