The ongoing technological changes in the Department of Posts will also reflect in the Postal Accounts as all the B.O/S.O/H.Os in the country are going to be computerized and net connected by the year 2012. All the transactions will become online. In this backdrop the financial and accounting aspects will also undergo a sweeping change.
The Department of Posts is going for introduction of Accrual accounting system to meet the future requirements from the Regulatory Authorities in Insurance and Finance Sectors. Suitable software will be developed by the service provider for each system and a Core System Integrator will integrate all the operations in the Department.
The present Cash based Accounting system will continue and the accounts will be submitted to the Finance Ministry as usual in the existing form in addition to the preparation of Accounts in the Accrual method for the specific use of the Department. Both streams will be delivered on line. Intensive training to the PAO staff will be provided by Institute of Chartered Accountants.
With the introduction of technology, online transactions and Accrual method, there is a need for identifying the Accounting Unit and Department is examining the proposal of identifying the Division as the Accounting unit instead of H.O.In such a case, Placement of some PAO personal at the Divisional level is required. But it was learnt that so far no decision taken with regard to the structure of the Accounting Unit.
Postal Accounts Wing has arranged a presentation on Introduction of Accrual based accountancy and re-organization of Postal Accounts to the Staff Side in the Committee hall, Dak Bhawan, New Delhi on 01-02-2011 to familiarize the Staff Side with the concept of Accrual Accounting.
