State to implement DAC

A one day workshop on ‘Rationalisation and Streamlining of Heads of Accounts in the Demands For Grants’ for all government departments was held at the Treasuries & Accounts Directorate Conference Hall, Kohima September 9.

According to a DIPR report, the workshop was jointly organized by the Budget & Monitoring Cell and Treasuries & Accounts, Finance Department, Government of Nagaland and MS Wipro Ltd. Consultants.

In his opening remarks, additional chief secretary & finance commissioner, Toshi Aier said there has been a need to review the present age-old classification of government transactions, which was the basic tool for capturing the budgeting and accounting data.

He said the workshop was a culmination of the intensive exercise taken up by the department in partnership with the team from MS Wipro, the selected Project Management Consultant, which was assisting the state in designing and implementation of the Detailed Accounting Codes  (DAC) in Nagaland.

Finance commissioner said streamlining of the accounting codification was an important exercise as a precursor to the treasuries and budgeting computerization initiative of the state.

Aier said state government was proposing to place two Demands for Grants in the next Financial Year, which would include the existing conventional system and another one in the new codified system.

He said, when the new system was successfully implemented, it would bring about systematic and accurate financial management.

However, he said entire exercise and success of the system would depend on collective efforts of all departments.

MS Wipr Ltd. senior consultant Ranajoy Ghosh pointed out some defects in the present Account codification structure of Nagaland and highlighted the proposed codification structure.

Finance department secretary (budget & monitoring cell) Y. Kikheto Sema, in his concluding remarks, said new codification of demand for grant was mandatory as per direction of the centre for more transparency, clarity and accountability.

He said a lot of misclassification happened in the present system, which could be avoided through the new system.

Sema requested the accounts officers of the different departments to learn and know the system and guide their respective department’s heads of departments and administrative heads of departments. The workshop concluded with clarification of doubts by the organizers.