Accounting and Revenue Directorate

 

Finance, Accounts and Revenue is the pivotal department of Bangladesh Telecommunication Regulatory Commission (BTRC). This department prepares income & expenditure budget of the commission. The main function of Accounts section is to prepare monthly pay bills of all officers and staff of the commission and disbursement of salary in due time. Accounts section is responsible for the preparation and expenditure of travelling allowance bills, contingency bills and it bears the responsibility of deducting income tax and VAT from the bills of suppliers and contractors and deposit the same into government treasury through Challan. Accounts section prepares monthly statement of expenditure, makes reconciliation of bank statement. This section prepares annual income and expenditure statement. Preparation of Balance Sheet is the most important task of this department. The Balance Sheet reflects actual financial position of the Commission.

BTRC is responsible for collection of non-tax revenue of the government from the Telecom operators. The main sources of income are the collection of License fee, License Renewal fee, Revenue Sharing  and Spectrum Charge as well as service charge from different telecom operators. It collects revenue from PSTN, IGW, ICX, IIG, ISP & VSAT licensees. According to the provision of VAT Act Revenue section of the Commission collects VAT from all kinds of license fees, license renewal fees, revenue sharing, spectrum charges and deposit the collected VAT to Bangladesh Bank through Treasury Challan. These are the day to day job of the Revenue and Accounts section of the Commission. 

1.     Synopsis of income and expenditure accounts of the financial year 2012-2013.

In the financial year 2012-2013, the target of revenue collection of the commission was taka 5,159.32 crore. Administrative expenditure target was taka 54.21 crore while capital expenditure target was taka 50.78 crore. The total expenditure budget was taka 104.99 crore. In the fiscal year 2012-2013, actual revenue collection was taka 5,404.69 crore and administrative expenditure was taka 55.11 crore and capital expenditure was taka 48 lac. A lot of money was saved in expenditure sector due to strict compliance of the expenditure control. During the financial year 2012-2013 an excess amount of taka 245.37 crore was earned over the budget target. As a result, against the target of revenue earning of taka 5,054.32 crore, BTRC deposited taka 5,349.10 crore to the government treasury i.e. an additional amount of taka 294.78 crore was deposited in the government treasury over budget target.

2.     Revenue collection details in the year of 2012-2013:

S/N

Description

Actual Revenue (Taka in Crore)

01

License fee

109.20

02

Revenue Sharing

2,642.92

03

Spectrum Charge

2,498.19

04

License Acquisition Fee

57.22

05

Legal & Licensing Fee (ISP, V-SAT, DDCSP & Others)

2.24

 

06

Income from Administrative fine & Late fee

1.75

 

07

Other Income

93.17

 

Total Revenue

5,404.69

 

1.     A Comparative feature of revenue collection since Formation of BTRC :

S/N

Financial Year

Target amount of revenue collection (Taka in crore)

Actual Revenue collection (Taka in Crore)

01

2001-2002

4.26

3.45

02

2002-2003

89.00

120.07

03

2003-2004

91.00

147.85

04

2004-2005

270.00

357.14

05

2005-2006

449.25

735.70

06

2006-2007

512.31

565.61

07

2007-2008

1,501.92

1,677.85

08

2008-2009

2,547.68

3,195.38

09

2009-2010

2,135.35

2,370.98

10

2010-2011

2,556.74

3,047.28

11

2011-2012

6,302.57

6,957.70

12

2012-2013

5159.32

5404.69

Total

21,619.4

24,583.70

 

Revenue collection (taka in crore) by Chart: 

1.     Information System Audit:

According to the provisions of Bangladesh Telecommunication Regulatory Act 2001, Messrs M. A. Fazal & Co. a Chartered Accountant firm was appointed to carry out the information system audit of Grameen phone Limited (GP). The audit firm submitted its report to the commission as per contract. According to that audit report, the outstanding amount of GP was taka 3,034.00 crore, which is payable to the government. When GP was asked to deposit the money, instead of paying the due amount, they filed a case in court of law challenging the Audit Report with malafied intention not to pay government revenue which they concealed in their billing system and refrained from paying some fixed charges and fees. The case is still pending in the honorable court.

2.     Social Obligation Fund:

Social obligation Fund (SOF) has been formed according to the provisions of the clause 21-KA of Bangladesh Telecommunication Regulatory Act 2001 (Amended Act 2010). The fund has been raised for extending telecom facilities for the underprivileged population i.e. to the telecom facility deprived area. This would also develop the socio-economic condition, alleviate poverty and contribute in the economic progress of the country. The receivable amount of money from the following sources is deposited in this fund:-

I. Government grant,

II. Any other native, overseas or international organization’s grants,

III. Subscription from the telecom and radio stakeholders and

IV. Contribution from any other legal sources.

Money of SOF is being deposited in a scheduled bank, as determined by the commission. According to the provision of the licensing guideline, the telecom operators have to subscribe at the rate of 1% on their gross audited revenue to the SOF. This fund is to be invested with the approval of the commission in order to make telecommunication facilities available to the poor and to the people of remote areas who are deprived of Telecom facilities. An amount of taka 252.66 crore has so far been collected as on 30th June’2013 and deposited in the SOF account.

 

3.   Steps taken for the welfare of officers/staff:

(A) Contributory Provident Fund (CPF): CPF scheme has been introduced for the welfare of officers and staff of BTRC. According to CPF Rules -1979, 10% of basic of each officer/staff is deducted from monthly pay. The Commission also pays equal contribution i.e. 10% from Commission’s fund to the employee’s CPF Fund Accounts. A total amount of taka 1.60 crore has been deposited in the CPF account as on 30th June’2013.

(C) Trusty Board : According to the provisions of Benevolent Fund & Group Insurance ordinance, 1982, Group insurance & Benevolent Fund has been formed for the welfare of the officers/staff of the Commission. The Commission has formed an eleven (11) member Trusty Board with one Commissioner as the Chairperson for a two year term. The Trusty Board maintains Benevolent Fund and Group Insurance fund according to the rules and procedures of Benevolent fund & Group Insurance Ordinance-1982. The Trusty board is supposed to submit its report along with expenditure statement to the Commission within two months at the end of every financial year.

(D) Pension Allowance & Pensionary Benefit Scheme: The Commission has introduced Contributory Provident Fund for the benefit of the employees. The Commission has also formed Employees Gratuity Fund to extend retirement benefit to the employees immediately after retirement.

4.     Annual Audit: According to the provision of Article 27(2) of Bangladesh Telecommunication Regulatory Act, 2001, Annual Income and Expenditure Account of the Commission is to be audited by a registered Chartered Accountant Firm within 60 (sixty) days after the closing of each financial year and to be forwarded it to the Ministry in order to produce the audit report before the parliament within the next 60 (sixty) days. Besides, the Auditor General of Bangladesh conducts Audit of accounts of BTRC after the expiry of each financial year according to the provision of Bangladesh Constitution.