Railway Hand Book on Internal Checks

HAND BOOK ON INTERNAL CHECKS 2015 RAILWAY ACCOUNTS

Canons of Financial Propriety These rules also known as Canon of Financial Propriety are the guiding principles to be followed while incurring any expenditure from the Public Fund. Therefore, due regard must be paid to these golden principles as given below: (1)

(2) (3)

The expenditure should not prima facie be more than the occasion demands, and that every Government servant should exercise the same vigilance in respect of expenditure incurred from public moneys as a person of ordinary prudence would exercise in respect of the expenditure of his own money. No authority should exercise its powers of sanctioning expenditure to pass an order, which will be directly or indirectly to its own advantage. Public money should not be utilized for the benefit of a particular person or section of the community unless—

(I) The amount of expenditure involved is insignificant; or

(II) A claim for the amount could be enforced in a court of law; or

(III) The expenditure is in pursuance of a recognized policy or custom. (4 )

The amount of allowances, such as traveling allowances, granted to meet expenditure of a particular type, should be so regulated that the allowances are not on the whole sources of profit to the recipient.

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INDEX S. NO. Chapters

Page No.

1.

Financial Scrutiny of proposals;

2.

General Bills

33

4.

Budget

82

3.

5.

A.

Works &

B. Establishment

Contractor’s Bills Inspection

6.

Stock Verification

8.

Bills Recoverable

10.

Checklist for Workshops Accounts

7.

9.

11.

1

59

101

181

Establishment Matters

209

Books Section

265

Traffic Suspense

254 289 293

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Chapter 1

SCRUTINY IN FINANCE SECTION A - Works Though specific points need to be scrutinized for different type of proposals yet the canons of financial propriety is to be always be kept in mind. As a basic principle, if a proposal is received for a new work which has not been done so far or work is proposed to be executed through different method, financial scrutiny should be very deep. Following is the list of important points to be seen by Finance Section while scrutinizing different type of proposals and estimates. 1.

estimates

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Abstract Estimate

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Detailed justification is provided by the branch officer.

Indication of completion period and currency of the work is given. The cost of work with reference to competency of sanction i.e., GM/DRM, exists. Detailed allocation has been recorded.

Basis of rates and correctness of related quantities is given by the department.

Calculation of ROR for remunerative works is calculated (Para 202 of FI) Arithmetical accuracy.

For Out Of Turn works, reasons for urgency have to be placed on file. (Para 1104 E )

ii.

Detailed Estimate

Following points needs consideration while checking detailed estimates:1

Hand Book on Internal Checks (Railway Accounts)

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Whether the estimates are based on LAW Book, Pink Book, SRSF (Green Book) with detailed justification. The estimate vetted should be endorsed in the Pink Book against that item by the Finance Section.

Detailed estimate has been proposed in the prescribed format (Top sheet, detailed sheet with Works, Stores and Freight portions) Check of rates; whether they have been taken properly, the basis of rates has been given. Plan(s)/Drawing(s) is/are approved.

Certification of quantities is based on realistic field requirement of the work as per Plan and Drawings.

Rates taken are based on last, lowest, latest accepted rate for the similar works. This is also to be ensured that rates taken are not restricted for LAR purpose by the TC on previous occasion. Sub-estimate of the other concerned department are also available in details in the prescribed format (works, stores, CRRM) The competent authority has signed the estimate sheet and top sheet. Allocation wise clear break-up has been shown.

Necessary auxiliary provisions made are as per prescribed rate and are on absolutely realistic basis (contingency, D&G etc.)

Check of ‘scope of works’ with respect to Abstract estimate and Reference of approval by the competent authority has been linked. Clear fund certificate towards availability of funds during the year is obtained.

Scrutiny in Finance Section

The estimate is arithmetically accurate.

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In addition, the divisional finance should make its own rate master that should be jointly vetted by accounts and executive.

Deviation statement with clear demarcation for cost escalation and quantity variation is recorded so as to ensure appropriate competency of sanction.

M&P items should not be clubbed in the works estimates.

All the provisions in the estimate are as per Rly. Board’s circulars issued from time to time. (Para 703-E)

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Track Estimates

While checking the proposal of Track estimates, following points are to be kept under consideration:-

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Annual GMT and total GMT carried over that line since last renewal in terms of IRPWM. Wear and tear of rails, sleeper in terms of IRPWM.

Quantity assessment of Ballast in terms of IRPWM (route, cushion and movement of Rolling Stock) Whether secondary or primary renewal?

Avoidance of separate rail renewal and sleeper renewal for the same section.

Check of estimate against inclusion of M&P items, fancy items, small machines etc. Similarly the revenue work should not be charged to track provisions. D&G and other miscellaneous provisions are reasonably worked out.

Realistic assessment of TRD and S&T sub estimates. 3


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Rates for same type of estimates to be seen.

Compliance of FA&CAO’s observations on these matters from time to time should be ensured. It should be seen that track work of the KMs sanctioned are not operated in different KMs and there is no duplicity in execution in the same place. ( SOPWCR 1.01)

1.

M&P AND RSP PROPOSALS

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Scrutiny of justification.

Whether as a result of mechanization any reduction in Manpower is possible or not?

If the M&Ps are being procured on the basis of Guidelines of Rly. Board or Inspections, the copies of such Guidelines and Inspections should be enclosed. It should be seen that RDSO guidelines are issued with the approval of Railway Board. Allocation of the expenditure has been clearly shown.

Whether the M&Ps proposed on replacement a/c, if so complete details of Condemnation of previous one enclosed.

Check of replacement vs. reconditioning analysis (Para 240 F I) The rates have been taken as per prevailing market rates.

Whether the Procurement or Replacement is likely to effect expenditure on items i.e., Manpower and maintenance.

Introduction of a machine for the first time should be scrutinized thoroughly. The source should be sound having proven utility.


2.

QUOTATION PROPOSALS

Quotations are exceptions to the tendering rule, therefore, need to be resorted sparingly. Following points need consideration while examining quotations:-

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Reasons for dispensing with calling of tender. Justification for calling of Quotation.

Whether the quotation has been invited as per Rly. Board’s circulars. Reference to the enquiry letter.

Approval of the competent authority for inviting quotations. Number of offers received (minimum three offers)

Whether the quotations have been opened properly and on due date.

Whether the proposal is for fancy and furnishing items. Reference to the comparative sheet. Net cost of the work.

Certificate of suitableness, reasonableness, technical suitability and rate reasonability is submitted for the valid lowest offer. Repair is not for condemned items.

Competency of the sanction in terms of item No 14(a) of SOPWCR Part ‘E’. Availability of funds.

Adherence to annual ceiling limit of sanctioning authority in the financial year. Ref: SOPWCR1.15 and Remarks contained therein.

(Item No. 2.7.4.1 of B.S.Sudhir Chandra Committee along with Para 1211E and Item 1.15 of SOPWCR)

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3.

REPAIR PROPOSALS

Following details are required for consideration of repair proposal:-

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Date/cost of commissioning.

procurement,

installation/

Repair proposal is not for items which have been condemned.

The nature of the work done by machine and prescribed life of the machine. The prescribed life of asset and work done by the asset.

Whether the machine is covered under warranty if so, period of warranty. Instances of earlier repairs, amount spent on its repair/maintenance till date, last similar repair, agency and mode of tender. Comparison between cost of machine and repair cost. Date of breakdown of the machines and how the work is managed after the breakdown.

Justification for the work and mode of tendering system i.e. open, limited or single; is given. Possibility to get most competitive rates/conditions must be explored. Administrative approval of the competent Authority exists. Cost benefit analysis indicating repair cost and enhanced life of the machine. It should be worth spending on repairs so that life & performance of the asset increases commensurately.

Division accountant vetting in case of divisional proposals.

Reasonability of rates to be certified and should match with the last accepted rates or actual expenditure.


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Warranty for satisfactory working after its repair. Competency of sanction and arithmetic accuracy. Availability of fund.

- (SOPWCR 6.35 for general repairs)

4.

HIRING OF VEHICLE PROPOSALS

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Administrative approval of DRM/ADRM/competent authority is available. Financial justification for hiring of vehicles exists.

Whether spare vehicles are available with the department from where the requirement can be met.

Condemnation certificate is available if the hiring of vehicle is proposed on that ground. How the work is presently being managed.

How the cost of hiring has been worked out. Whether the budgetary quotation/LAR has been obtained. (SOPWCR 6.14, SOPWCR 6.15)

(a) Bd’s Letter NO. E(G)2007/A14/6 dated 0808-07. (b) Bd’s Letter NO. CE-II/Genl/I dated 27-052002.

(c) Bd’s letter No.F(X)II-2010/PW/2 dated 1110-2010 5.

AMC PROPOSALS

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When were the machine /equipment procured and original cost of machine/equipment? Whether the machine is under warranty period, if so the details thereof. Administrative approval is obtained from competent authority. Whether AMC comprehensive.

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Why it cannot be maintained departmentally.

(SOPWCR 6.01)

6.

CASH IMPREST PROPOSALS

Following points are to be checked while scrutinizing the proposal for cash imprest or extension or enhancement.

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Proper justification is given. Imprest is an amount where pre-check is not carried out. Therefore, the provision should be barest minimum.

Whether the proposed imprest is bare minimum to meet emergent requirements of the office. The monthly/seasonal fluctuation in need of imprest is observed. Whether the provisions of Para 1050 to 1055 Finance code volume I are complied with.

Actual amount of payment made during the past six months, if enhancement of cash imprest proposed. Proposals on the plea of delays in recoupment should not be entertained; action should be taken to expedite recoupment. Competency of sanction for the imprest.

In case of new cash imprest, the proposal should be initially for a temporary period subject to review after a period of six months or so.

Cash imprest for safety/disaster management should be dealt as per Railway Board’s guidelines.(Para 1050-1055 F1, SOPWCR 6.43)

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MISC. PROPOSALS

Proposal other than Supplementary Work Order’s, Estimates, M&P Proposals, Indents, M.S., Finance Establishments, Quotations and brief Notes:-

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The proposal of Misc. nature other than quoted above received in Accounts office are examined as per


circulars issued by Rly. Board, HQ and with specific reference to schedule of Powers.

Scrutiny of financial justification is carried out with reference to provisions in Finance code connected rules, orders and instructions.

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BRIEF NOTES SCRUTINY

Following factors have been kept under consideration while undertaking brief note scrutiny:-

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Rates reasonability, quantity justification and funds availability should be seen simultaneously.

Tender Number. Name of work.

Reference to sanctioned Estimate with copy on record. Copy of the NIT along with uploading of NIT on official website and newspapers cuttings in which advertisement appeared showing date of publication etc. Original copy of M.R to purchase Tender documents. Number of tender forms sold /received. Validity date of offers. Tender time table.

Number of NS items included and whether the rate analysis is vetted duly approved by SR.DEN/CO. Approval of NS item by competent authority. Requisite amount of Earnest Money.

Whether E.M. is in valid and acceptable form

No over writings and corrections and whether these are correctly examined and signed if found.

Description of eligibility criteria & reference of the case file. 9


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Description of Bank solvency & reference thereof.

Details of the T&P and Machinery and Human Resources submitted by the Party.

Administrative remarks on special conditions submitted by the Party & evaluation of special conditions. Last accepted rate of the similar work in the same or contiguous area. Last, lowest, latest LAR is given.

Any special reason or unusual factor with respect to acceptance of last rates.

Comparative position with the last lowest, latest accepted rate and the average accepted rate. Any error in the tender document and Comparative statement. Percentage variation between sanctioned Estimate and lowest offer received and reason thereof. Basis of rates for items in Tender Schedule.

Deviation statement between sanctioned estimate and the tender schedule in terms of No. of items, quantity and rates.

Special Conditions with financial implications in the Tender Documents to be checked and indicated for TC. Reasons for variation between NIT Cost and the lowest offer received. Legal vetting of Joint Venture documents or any deed etc. having legal implication. Any other reason.

Briefing note should be prepared in duplicate, checked and signed in the Executive office. In the accounts office, the facts & figures are checked and verified as also signed by the competent authority.


One copy of the Briefing note duly verified & signed should be returned to the concerned department and the accounts office retains second copy. (Para 1254 E, 613 F1)

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Vetting of Contract Agreements: -

After the acceptance of the tender, the contract agreement is received for vetting. The following checks are required: Only the copy for Accounts of the contract agreement is to be vetted.

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If all above requirements are met, the cover page of the agreement is to be vetted.

10.

PROPOSALS FOR VARIATION IN CONTRACT VALUE

Any variation in excess of 25% of the total value and individual item and overall value in a contract, will require finance concurrence. The variation proposal is treated in the same way as a fresh proposal and all the checks to be exercised on a fresh proposal are to be conducted on a variation proposal also. In addition to this, the following checks are also exercised:-

The budget allocation on the cover page is as per the sanctioned detailed estimate.

If it is a sanctioned work of the Law book/ Pink book, the concerned Law book/ Pink book item no. is mentioned on the cover page. The rates in the agreement are as accepted by the tender committee and specific recommendations are incorporated in the agreement. The Works Accountant has verified the agreement and put the sign on it. The competent authority along with the contractor has signed the contract agreement.

- (Para 1259 E)

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i) The variation case should be furnished in the requisite format. i.e., duly showing the original scheduled quantity, rate, amount, the revised quantity, amount and the savings/ excess, both in absolute and percentage terms. ii) The variation statement should bear the signature of concerned Executive as well as the Contractor.

iii) The Contractor furnishes “No Claim Certificate” regarding savings and non-operation of items.

iv) The original case file along with sanctioned estimate, the Tender Proceedings and Agreement copy are submitted along with the proposal for variation.

v) All the items where the variation is above 4-5 % should be explained in detail.

vi) All excess items above 25% over the scheduled quantity should be worked out on the basis of current rate/ LAR. vii) If specific rates are mentioned in the TCP, for excess quantity, it should be ensured that only these rates are adopted for excess quantity. viii) Any specific comments by the tender committee should also be borne in mind while processing the variation proposal. ix) Approval of competent authority exists for the same.

If all the above requirements are met, an office note / Concurrence / vetting letter is prepared and put up for approval and signature of the Competent Authority. - (Para 1268E)

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VETTING OF INDENTS/ REQUISITIONS.

The following checks are required for vetting the indents.

i) It should be ascertained whether requisition has also been processed for the same item in the recent past. 12


ii) If it is a new proposal, the same is given In-ward no. by feeding all the required information on the computer.

iii) The requisition should be accompanied with a top sheet and all the requisite details should be duly filled in. iv) If the requisition is for items, which is being regularly procured every year, the consumption of last three years should be furnished in the top sheet.

v) If the requisition is being processed for a new item for the first time, detailed justification, as to the background for procuring the item is required, alternately the requisition should be accompanied with the copy of competent authority’s sanction with the finance concurrence in terms of various schedule of powers delegated by GM.

vi) If any item is being procured in large quantity for the first time, the procurement should be supported by the policy decision /sanction/already certified by an agency appointed by Railway Board and tested on trial basis. vii) If a pink requisition is being processed, the requisition should be accompanied with the original sanctioned detailed estimate, wherein there is a provision for the same. viii) If any of the above details is not fulfilled, the indent will be returned with specific remarks duly taking the approval of SR.DFM on a office note/ returning letter.

If all the above requirements are met, the requisition is vetted by putting the enfacement on the original requisition along with a covering letter. Simultaneously an enfacement is also to be made on the original estimate as a token of the item being vetted. The same detail is also entered in the vetting register and put up for SO and SR.DFM’s signature. ( SOPWCR 6.27, SOPWCR 2 ) 13


12.

LAND LICENSING

While checking the proposals for land licensing, the following points should be considered:-

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Licensing of Railway land is permitted only for purposes directly connected with the Railway working and with the personal approval of the GM and personal concurrence of FA&CAO.

The proposal should bring out clearly the details of the land to be leased/ licensed. The diagram/plan, period of lease to be indicated. Particulars of the party to whom the land is to be leased.

A certificate that the land proposed to be licensed/ leased is vacant and not required for use of Railways in the future. Certified Documents relating to latest market value of land from Revenue authorities.

The recovery of leased rent/license fee should be worked out based on the above documents. The license fee will be fixed as a percentage of the market value of the land being licensed.

Railway Boards policy letter, governing the mode of license fee/lease payable by the party, should be linked. (Chapter 10 of ENGG CODE.)

- Rly Bd’s Letter No. 2005/LML/18/8 Dtd. 10/01/05

- Rly Bd’s Letter No. 2005/LML/18/8 Dtd. 08/06/05

- Rly Bd’s Letter No. 2001/LML/24/20 Dtd .16/08/05 13.

Opening of Tenders

Tenders should be opened, at the specified time, date and place by the officer nominated for the purpose. All advertised (Open) stores tenders must be opened in the presence of a representative of the Accounts Department. Whether

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‘limited’ stores tenders should be opened in the presence of a representative of the Accounts Department and if so beyond what minimum tender value, may be decided by the Railway Administration in consultation with the Financial Adviser and Chief Accounts Officer. The key points to be observed while opening tenders are mentioned below for guidance:(i)

Tender should be opened by nominated executive at the prescribed time, date and place in the presence of accounts representative.

(ii)

Initial (with date) the cover containing the tender. All the tenders should be counted and marked 1/n.2/n….. N/n (n=total numbers of tender forms received against NIT) Immediately after opening the tender, each page of tender form should be machine numbered and date stamped.

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(iv)

(v)

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(vii) Mark and initial all over writings in red ink. The corrections, overwriting and omissions should be serially numbered and the total number of such

Initial (with date) front cover page of the tender and every page of the tender on which the rates or special tender conditions are quoted. All the tender documents should be machined numbered, credentials submitted should be numbered and mentioned in the tender register. The names of the tenderers and the rates quoted by each tenderer should be read out, wherever practicable, to the tenderes or the representative who may be present at the time of opening of the tenders.

Initial (with date) all corrections in the schedule of quantities, schedule of materials to be issued and specification and other essential parts of the contract document.

The rate quoted in figures and words should be circled in such a manner as to not leave any space after starting or ending digit.

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corrections etc. should be clearly mentioned at the end of each page of the schedule attached to the tender and attested with date.

(viii) Clearly indicate on each page of the schedule attached to the tender, any ambiguities in rates quoted by the tenderer in words of figures. (ix) (x) (xi)

Specifically record whether samples submitted or not along with the tender.

All the information of each tenderer, viz. rate, special conditions, credentials, validity of offer, EM details etc. should be recorded in the tender NIT wise.

While opening the tenders, no opportunity should be given to any tenderer to repudiate, amend or explain the rate and/ or any condition quoted in the tender.

(xii) Delayed tenders i.e. “tenders” received before the time of opening but after the due date and time of receipt of tenders should also be opened and dealt with in the same manner as tenders received before due date and time.

(xiii) ‘Late’ tenders, i.e., tenders received after the specified time of opening should be opened by the concerned Branch Officer in the same manner as tenders received before due date and time and marked as such in red ink prominently on the envelop as well as on the tender papers. (Para 607- 610 FI)

(xiv) A suitable remark in regard to both the ‘delayed’ and ‘late’ tenders should be made both in the Tender Register as well as the Comparative statement. (xv) If the rates are not quoted in words, it should be recorded on the same page.

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(xvi) Regarding Earnest Money, it should be seen whether requisite EM is submitted in the prescribed form or not. Otherwise suitable remarks may be offered in the tender document.


(xvii) On front page of tender form an endorsement that “Tender forms contains pages from 001 to ….” Should be made and initialed by executive and accounts representative.

(xviii) Tenderer’s authorized representative’s initials should invariably, be obtained in tender register. 14.

Authority: FA&CAO/JBP Letter no. HQ/AC/FX/Inst dated 21-01-2009

VETTING OF DETAILED ESTIMATE

I. On sanction of work (PB or GB or LAW Book or GM-

OOT or Divisional Sanction etc.) the detailed estimate for work should be prepared keeping in view the scope of work and cost as envisaged in the abstract estimate and submitted to the competent authority for the administrative approval.

II. Subsequently, detailed estimate should be submitted

to the associate finance for vetting. At the time of associate finance vetting, copies of original proposal of that work (PWP, LAW proposal etc.) should be annexed for better appreciation. After finance vetting, technical sanction of competent authority should be obtained.

III. The detailed estimate of a work should comprise of:

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Narrative Report

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Abstract sanctioned cost.

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Sanction reference of work (no. & year of PB/ GB/BM-OOT/LAW. Divisional Sanction etc.) Objective and brief justification of work.

Location of work execution (Deviations, if any, w.r.t. sanctioned work should be brought out along with reasons) and inspection report, if required.

Scheme of execution of work and proposed period of completion. 17


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Head of the allocation and fund availability position in current financial year. Position of excess over estimates under the heads ‘escalation’ and ‘other than escalation’ w.r.t. abstract estimate and declaration about presence of any material modification. Detailed estimate no. and any other relevant information. Outer sheet: The outer sheet of detailed estimate containing abstract of the cost of work. Summary sheets of sub –estimates of various departments. Statements showing details of estimated cost: Sub- detailed estimates of all departments involved. Detailed estimate should segregate the provisions in terms of cash and stores. Executive should ensure that quantities are based upon realistic work requirement in line with approved plans and drawings (which should be attached) Methodology and basis for composition of quantities of major items should be mentioned in the case file. Detailed estimates should be prepared by considering the current rates. Rates references should be detailed out and attached in the case file. Over head charges like D&G, contingencies etc. should be included on need basis. If these charges are included at maximum levels, this should be justified in terms of actual requirements, References of extent RLY Bd’s guidelines should be mentioned.


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Labour charge should not normally be included in the detailed estimates because now days most of the works are executed on contractual basis and rates are usually from contractual works itself. Fancy items like TV, VCR, Camera, laptop and Projector etc. should not be provided in the detailed estimates unless these are explicitly provided for in the abstract estimates.

CRRM should be taken into account as per existing condition of asset, if applicable .It should be taken at current rates only. Any element of foreign exchange involvement should be brought out.

In respect of detailed estimates prepared base on Survey Reports, it should be ensured that the provisions made in the detailed estimates are in conformity with the facilities proposed in Survey Report; Survey Report should be attached in these cases.

Deposit Work

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In case of deposit works, the codal provisions as applicable on case-to-case basis e.g. levy of departmental charges, prior acceptance is taken for bearing the departmental charges, prior deposition of amount by the agency for whom the work is to be executed, etc. should be examined.

Variation Statement

During execution of the work there may be variation in original contract value due to various reasons. Mainly the variation in a works contract may occur due to the reasons detailed below:19


(i) Variation of the conditions of contract. (ii) Variation of the rates of items.

(iii) Variation of the quantities of any items. (iv) Variations of the items.

While scrutinizing the variation proposal the following checks are to be exercised:

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Relative reasons and their genuineness.

Impact on inter-se-position is to be seen.

No undue benefits to contractor or any loss to railway should be ensured.

If price variation clause is applied in case of works costing more than Rs.50 lakh and the same is being followed while working out the final varied cost due to escalation. Consent of the contractor has been obtained for the said variation. Necessary certificate has been given by executive.

Reasons for variation in individual items are not contradictory. For example if dismantled quantity has gone down, the quantity of removal of dismantled muck does not go up.

Variations are not being proposed for profit making items without adequate justification even if it is not leading to variation in the contract.

Often variation in some items is restricted by the tender committee due to various reasons it is to be ensured that such restrictions have been observed. As a consequence of proposed variation, the estimate is not being exceeded so as to necessitate higher authority’s sanction and if so the sanction is obtained. Excess variation is not caused due to work being proposed at some other site.


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The reasons furnished do not give an impression that the work has already been completed.

As a consequence of proposed variation, the competency of sanction is not getting changed and while concurring such variations, the appropriate authority under whose sanction the revised value will lie has been pointed out.

The limit for varying quantities for minor value NS items shall be 100% (as against 25% prescribed for other items.) A minor value item for this purpose is defined as an item whose original agreement value is less than 1% of the total original agreement value. No such quantity variation limit shall apply for foundation items. For tenders accepted by General Manager, variations up to 125% of the original agreement value (even if the revised agreement value is beyond GM’s competence to accept tenders) may be accepted by General Manager.

For tenders accepted by Board Members and Railway Ministers, variations up to 110% of the original agreement value may be accepted by GM.

The aspect of vitiation of tender with respect to variation in quantities should be checked and avoided. In case of vitiation of the tender, sanction of the competent authority as per single tender should be obtained.

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(Bd’s letter No.2007/CE.I/CT/18/Pt.XII dtd.31-12-2010)

An additional provision of Type- I quarter should not be a reason of variation as the same are not to be constructed any more due to implementation of recommendations of 6th Pay Commission. 21


WORKS MATTERS DELEGATION OF POWERS FOR SANCTIONED OF VARIATION AS ABOVE EXTENT OF POWERS DELEGATED TO HEAD QUARTER OFFICERS

DIVISIONAL OFFICERS

Item no. Ref. to Rule

Nature of Powers

PHOD/CHOD/ SAG

Other officers

DRM/ ADRM

OTHER OFFICERS

Bd’s letter No. 94/ CE/-I/ CT/4 Dated 22.10.01

1.25(b) Variation in quantities for the contracts accepted by GM and below.

Up to 25% provided the value of contract is still within his powers of acceptance.

SG/JA Grade/ Sr. Scale Up to 25% provided the value of contract is still within his powers of acceptance.

Up to 25% provided the value of contract is still within his powers of acceptance.

SG/JA Grade/ Sr. Scale Up to 25% provided the value of contract is still within his powers of acceptance

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22

For variation in quantities accounts concurrence will be required if variation is in excess/ savings of 25 % of the total value and individual item in a contract.

Chief Engineer (PHOD/CHOD) will have power to approve these changes in contract approved by the GM/AGM and Railway Board upto a maximum of 25 % of contract value or Rs. 25 lakhs which ever is less for each individual contract.

Total implication of variation in quantities and variation of items in a contract will be limited to 25 % of total value of original contract. In case it is exceeding personal approval of GM or higher authority which approves the original estimate and in whose competence the enhanced value lies will have to be obtained. For controlling the payment in case agreemental value goes beyond (+) 25%, a regulatory mechanism as part of the contract shall be built in as part of contract itself. For the first 15 % increase in value beyond 25 % of agreemental value, the rates will have a reduction of 2 % in the incremental value of the agreement and for the next 10 % increase in the value, rates will have an additional reduction of 2% in the further incremental value of the agreement. The variation clause to


5.

6.

this effect will be included in all works contract.

In terms of Codal para 628-F1 & 1265 –E the original accepting authority should approve the variation provided the total value of the contract is still within his power of acceptance. If the total value goes beyond the competence of the original acceptance authority, the sanction of the higher accepting authority to be taken. In case variation takes place due to variation in quantity, contract has to be treated like a single tender.

-( SOPWCR 1.22 b )

23


B - Establishment TEMPORARY AND PERMANENT POSTS Following points are to be checked: •

Whether the proposal is for extension or creation of post.

•

Status of sanctioned cadre and Men on roll.

•

Detailed justification for the proposal with reference to workload and establishment already available.

•

Reference to the guidelines and instructions of the higher authorities.

•

Is there no possibility of avoidance of the post concerned?

•

Position of divisional surplus bank.

•

Yard sticks and benchmarks, if any.

•

Whether the posts are for maintenance of existing assets or new, if so details thereof.

•

Nature of post, temporary, permanent.

•

If the proposal is for extension of currency clear reference to the previous noting with detail justification.

•

If the post is chargeable to Private Parties details of the same on the items as under:

i.

Details of the previous payments.

iv.

Number of Leave Reserve /Rest giver required as per yardstick.

ii.

iii.

•

Demand / application of the Party concerned.

Percentage of Leave Reserve./Rest Giver. as per current cadre.

If the post is proposed under DRM’s power, position of surplus bank of the Division. A certificate of availability of the value under the surplus.

•

Position of matching surrender if any.

• 24

If proposal is for half-yearly review of running crew, reference to the actual hours of the crew should be made available on


• •

file. Also the results of the review are seen.

Check of Proposal for arithmetical accuracy. Competency of sanction of the post.

ii. WORKCHARGED POSTS (Gazetted and Non Gazetted) The proposal should contain the following details:    

     

Whether creation or extension?

If the post is work charged reference to the sanctioned estimate for clear provision available.

Cost of the staff chargeable/ allocation/is it within D & G charges provided in estimate. Justification in terms of worth of charge, balance of work, physical and financial progress of work. In case individual works are taken to which the post will be charged, outlay of the proposed work in that financial year. Fund availability duly certified by works accounts including details of estimate. Details of specific provision against estimates to which the post will be charged.

Department, Designation and grade of the post, number of posts. Period for which the posts are required.

Continuity of the post i.e. Date of creation, Date of operation, validity.

The above should be administratively approved /certified by the authority competent to do so.

The operation of posts should e minimum possible irrespective of availability of provisions. The current level of work load should also be checked. Normally, operation of group ‘D’ should be avoided. Procedure for Test-Check:

The Test check should, apart from verification and thorough examination of facts and figures embodied in various documents brought under test check, be directed to an intelligent scrutiny to find 25


out whether the clerk(s) understand their duties and rules governing them and do the work allotted to them diligently and whether there is any tendency to do the work casually. Test check should particularly be conducted at least once in a month by SO and all officers. The test checks should not be of routine nature rather they should focus on system improvement, procedural lacuna and lapses. The underlying idea should be efficient disposal without any violation of rules and procedures. The checks should also reflect the updated skills of the officer. -[PARA 803 A1]

Recording of results of Test- Check; _

The result of test check should be recorded systematically in a manuscript register in the form given below:- SR NO.

1

Item of work test checked 2

Extent of Test check prescribed 3

Particulars of vouchers elected for test check 4

Name of the SO/SSO (A) who had test checked the item 5

Result of Test check

6

Whether the discrepancy in col.6 has been pointed out by the supervisory staff 7

The test check register should be opened separately by each official; the test check is required to be made in accordance with these orders. The entries made in the register should contain adequate particulars so as to facilitate the identification of the entry/voucher subjected to test check and entry/voucher should be endorsed “Test checked” under the dated initial of the official conducting the test check. The exact nature of the discrepancy noticed should be briefly indicated in the appropriate column of the test check register. If the discrepancy calls for a lengthy note, the same should be given as a separate note for further disposal being done on the connected file(s) and a cross reference to this note should be recorded in the relevant column of the Test Check Register. The observations as a result of the test check should be clearly indicative of the appraisal by the checking authority of the quality of performance of the clerks whose work came up for test check. 26


Test- Check of registers: Another important item of test check is the inspection of different registers by the Gazetted Officers. The intervals at which different registers maintained in Accounts Offices should be put up for inspection by Officers. Periodicity of submission of Test- Check Register to Officers:

Every test checks register should be provided with an inspection sheet below the front page indicating the month of test check, date on which put up and the date reviewed by the Officer concerned. The test check registers of Section Officers and Senior Section Officers should be put up to the Branch Officer on the 10th of each month indicating the test check done on the work of clerk in the preceding month for review and orders, where necessary, by the Branch Officers. Check list for variation statement Items

1.

2. 3.

4.

Whether the following information are recorded on the summery sheet of variation?

Yes/ No/NA

A. B. C. D. E. F. G.

Approved cost of the work. Sanctioned estimated cost. Physical progress of the work Extended completion period. Original cost of the C.A. Revised cost of the C.A. Value & percentage of variation with CA value /Approved cost / Estimated cost. Whether the prior administrative approval is obtained from competent/tender accepting authority for proposed variation? Whether the item wise reason for the variation has been recorded against each item of the Schedule? Whether there is any variation in those items which are restricted by TC/Accepting authority ?If yes, (1) (2)

Whether the administrative approval of next higher authority is obtained? Whether detail reason is recorded for the same?

27

Hand Book on Internal Checks (Railway Accounts) 5. 6.

7.

8.

9. 10.

11. 12. 13.

Whether it is certified that items where the variation is on minus side will not be executed in near future & at higher rate ? Whether the NCC obtained from the contractor in case of saving beyond 25 %? Whether the provision of 2% deduction is made in case of variation for more then 25% to 40% and further 2 % for 40% to 50%? In case, New NS item are included in variation, following are required to be clarified. 1.

Whether the provision is made in the sanctioned estimate?

3.

Whether approval of com. Authority is obtained to operate the same?

2.

4.

Whether the LAR/Rate analysis is submitted with supported documents and signed by DA?

Whether it is certified that no undue benefit has been passed to the contractor by operating new item? In case, the tender has been split up and awarded to more than one tenderer, whether it is certified that over all variation will not exceed by 25%? Whether the reason for delay in execution of the work is recorded and approved by C.A.? Whether the variation is signed by controlling authority, contractor and SSO/WA? Whether the BG/performance guarantee in lieu of SD is current and valid with validity date? Whether it is certified that Inter-se-position is not changed? If changed, vitiated amount will be recovered from the contractor.

It is certified that all above item have been personally checked by the undersigned (Signature of Controlling Officer)

28


Check list for requisitions 01. 02.

Authority under which procurement is asked SOPWCRGEN item……………….. (Sanction of competent authority should be furnished, in case of other than SOGEN) Whether the following informations have been furnished on the covering letter? A.

B. Quantity procured particulars) C.

04. 05.

06. 07.

08. 09.

Quantity purchased locally

(full

AAC as per proposed stock master of WCR

H.

03.

previously

G.

quantity

Major Group

E.

including

D.

Detail justification justification.

F. I.

Stock in hand

Stock In transit

Year wise consumption of last three years Average life (In case of replacement )

Whether, the certification regarding SAFTY or NON SAFTY item is endorsed?

Whether, the certification regarding REPLACMENT / ADDITIONAL accounts endorsed? Whether the copy of LPO/B.Q. is attached in support of rates obtained ?

Whether the copy of instruction(s), guideline(s) of the Rly Bd,s , HQ or RDSO is attached ? If referred.

Whether the urgency certificate is submitted? If required. Whether the PAC is submitted duly signed by competent authority? If required. Whether the technical clearance is obtained from competent authority? If required

29

Hand Book on Internal Checks (Railway Accounts) 10.

1.

11.

Whether the correct allocation is recorded on indent?

13.

Whether the indent is signed by competent authority? (SOPWCRGEN ref )

12. 14.

2.

Whether it is certified that item being procured is not under RESTICTED category?

In case of RESTICTED item, whether prior approval of competent authority is obtained and submitted ?

Whether the funds availability is certified during the current Year?

Whether the bill paying/passing authority is indicated on indent?

It is certified that all above item have been personally checked by the undersigned. (Signature of preparing authority)

CHECK LIST FOR TENDER SCHEDULE 01. 02. 03. 04. 05.

06.

30

Whether approval of competent authority has been obtained for inviting tenders in terms of item no.1.17, 1.18 & 1.19 of SOPWCRGEN – 2004.

Whether estimate is sanctioned & whether provision exists for carrying out proposed work. (Reference to the estimate and specific item under which the provision exists for carrying out the proposed work to be given) Whether a comparative statement for items in Tender Schedule vis-à-vis item in sanctioned estimate has been prepared and proper justification for the variation\ change in item, if any, have been recorded. Whether clear site is available for work and whether approach to site is available.

Whether GAD is approved and whether structural drawings are ready. Whether “Special conditions” proposed to be incorporated in the tenders especially conditions involving financial implications have been critically examined.

Scrutiny in Finance Section 07.

Whether the proposed completion period of the work has been assessed on a realistic basis.

09.

Whether items included in tender schedule are as per latest instructions and specifications.

08. 10. 11. 12. 13. 14. 15.

Whether all requisite items have been included in tender schedule as per drawings and site conditions. Whether quantities of items are realistic.

Whether rates adopted are realistic estimated rates. (Basis of rates adopted such as reference to Contract agreements and calculations should be kept in record and put up to tender schedule accepting authority) Whether rate analysis for NS items are realistic and as per prevailing market rates.

Whether tender documents contain proper Technical specifications.

Whether tender schedule has been technically examined in drawing office. Whether Tender schedule has been checked by SO(A/cs)

(Signature of preparing Authority)

NOTE: - The check list should be prepared in every case before calling of tender and placed in respective file.

Items

1.

Whether it is certified that work is urgent in nature?

3.

Whether the reason for not calling tender is endorsed?

2.

4.

5.

Whether the justification including quantity is endorsed on the proposal?

Yes/ No/ NA

Whether the administrative approval is obtained from the competent authority? Whether the expenditure of work is within the power & ceiling limit of the Sanctioning authority as per SOPWCRGEN item No…………?

31

Hand Book on Internal Checks (Railway Accounts) 6. 7. 8.

9.

10. 11. 12. 13.

Whether the quotations are invited for those items only, which can not be executed through any existing contract including Zonal contract ?

Whether the quotation have been called from at least three contractors working in that area ? (Precautions must be taken to see that firms are genuine, not factitious.) Whether the reasonability of rates is certified in compression to last accepted rates? (LAR, if available, should be furnished other wise, rate analysis should be given. If necessary, budgetary quotation from dealers/firms should be obtained.) Whether it is confirmed that no fancy items are being provided in this work?

Whether it is certified that the work has not been split up for the purpose of bringing it within the ambit of dispensation ?

Whether the correct allocation of expenditure is endorsed? Whether the availability of funds has been certified by the OS/SSO budget? Whether the following documents are attached? 1. Copy of approval 2.

Comparative quotations.

4.

Copy of LAR in reference.

3. 5.

statement

along

with

History sheet of the item (In case of repairing works ) Other relating, if required.

Check list for quotation work

It is certified that all above item have been personally checked by the undersigned (Signature of preparing authority)

32

Chapter 2

GENERAL BILLS 1)

General checks for Passing of bills in XI Section: Following major checks are prescribed during scrutiny and passing of various bills received from Stores department .( These checks are illustrative but not exhaustive):a)

It should be ensured that all bills must be in ORGINAL format and duly signed by the competent authority.

b) The bills are approved by competent authority.

c) All the bills should be properly allocated & duly budgeted.

d) Wherever the duplicated claims are received, it should be seen that the concerned officer has certified that no payment has been made earlier and there are sufficient, genuine and valid reasons for the claim being in the duplicate. The concerned officer should also submit non-payment certificate along with the claim. e) Competent authority has sanctioned expenditure.

f) The expenditure sanctioned for a limited period is not admitted beyond the period without further sanction. g) Proper vouchers support the bills.

h) The payment is recorded on the work order/ supply order Misc. sanction so as to render second claim on same account impossible. i) The charge are correctly classified and the prescribed deductions (S.D. / I.T. / S.T. / ED. Cess / S.C / other recoveries from contractor) have been made.

j) The signature of officer drawing the bill agrees with his specimen signature in addition to the general steps mentioned above, following steps needs to be taken care of while passing the bills falling under specific 33


categories as given in the following paragraphs:

2)

Local Purchase Bills.

(A)

Petty Bills: -

b)

General steps for passing of bills in XI Section. a) c)

d)

e)

a)

c)

(B)

The controlling Officer should accept the Bills.

All the bills should be duly allocated and budgeted.

The concerned officer should certify all duplicate claims that the payment was not made earlier along with Non Payment Certificate.

Besides the above following procedure has to be followed for passing the bills under various categories.

Advertisement BILLS.

b)

All bills received should be in ORIGINAL duly signed by competent authority.

d)

Copy of Advertisement Order issued by PRO for placing the order is enclosed along with the bill PRO is signing the bills for acceptance.

The paper cutting of advertisement tender is enclosed along with the bill

Current DAVP rates as applicable to Govt. depts. are levied.

(C)

News Paper Bills

It is seen that number of news Papers /magazines are within the limit under SOPWCRWCRGEN.Bills prepared as per prevailing rates. The period of bill is verified with previous bills for ascertaining the rightness of claim.

(D)

Washing Bills.

It is to be seen that as per the contract agreement the rates as applicable are being charged. Bills received are as per the standards forms laid down for running bills. Necessary Bank Guarantee /Security Deposit as per terms of agreement 34

General Bills

(E)

are being submitted. Necessary I. Tax/S.C./EC. Wherever applicable are being deducted from bill. Before passing final bill it is to be seen that the total contract value does not exceed 25 % or Less than 25 % of value of contract else Finance concurrence has to be obtained for variation in quantity and value. Water Bills:

a) All water bills are accepted by SR.DEN/ADEN as the case may be.

b) The bills are received and passed within due date to avoid DELAY PAYMENT CHARGES. c) The bills are verified with respect to rates as prevailing rates.

d) The period of bills is verified with the previous bills for ascertaining the nature of claims.

e) Whenever S.D. has been submitted for new connection the same is recorded and FX concurrence is obtained. (F)

ELECTRICITY BILLS

While dealing with the claims, it should be ensured that:

a) The bills are accepted by the concerned officer of Electrical Department i.e. SR.DEE (TRD)/SR.DEE (G) as the case may be.

b) The bills are received well before the due date of payment. If it is not so it should be brought in to the notice of SR.DEE (G)/SR.DEE (TRD) c) No loss is incurred to the railways on account of bills being passed after due dates, thereby attracting delay payment charges.

d) The opportunity of availing discount is cashed in, whenever it is available, by passing the bills before stipulated date. e) The bills properly pertain to the current month by comparing the same with the previous months. 35


e)

Whenever security deposit is given, it should be with due reason and finance concurrence.

(G)

REPAIR BILLS.


a) All the bills above RS.10000/ should carry the finance concurrence.

b) At least three quotations have been invited in each case where the amount exceeds Rs. 2500/- . c) The bills carry a certificate that the work has been carried out satisfactorily.

d) For every repairs bill exceeding Rs.2500/- has the finance concurrence. Para 6.40 of SOPWCRWCRGEN, regarding the limit of RS.2 lakh per annum per department, is adhered to.

e)

Medical Bills where purchase is done by the CMS.

While dealing with the claims, it should be scrutinised that:

a) The bills are received through CMS BPL dully accepted by him. b) The items contained in the hospital bills & rates quoted for each test and operations should be from the pre-approved list of railways.

c) The bills should be duly accepted for hospitalization and for drugs medicines and it should be accompanied by covering letter from CMS that the employee has been referred for the mentioned diseases and tests. d) In case of advance payment, finance concurrence has been obtained and AGM sanction and Railway Board sanction has been obtained in each case.

e) The bills received are only from approved list of hospitals and validity period of the firms is not expired.

36

Local Purchase Medical Bills- These bills pertaining to purchase by DMM

General Bills

While dealing with the claims, it should be scrutinised that:

a)

For all the bills valuing up to CMS BPL places Rs. 10000/- the order.

b) The sanction of The CMD is obtained for the purchase of medicines over and above Rs.10000/-

c) The finance vetting from FA&CAO’s office is obtained, wherever an item of the bill exceeds Rs.50000/- or the overall amount of the bill exceeds Rs.3 Lakhs. d) All medical bills are duly accepted by the concerned medical superintendent in respect of the medicines received and it is to be ensured that these are in order.

e) The purchases are not split up to avoid finance concurrence or to bring it to lower competency of sanction. 2)

PAY ORDERS


i. All the pay orders are passed for different payments the same procedure is followed. If the pay order is pertaining to RTO / TAXES, Finance concurrence has to be obtained. ii. If the pay order is pertained to payment towards toll tax finance concurrence has been obtained in each case.

If the pay order is for RRB examination, the sanction of CHAIRMAN RRB and Finance concurrence is obtained in each case. 50 % of total expenditure is first to be charged to RRB head, and debit of such expenditure on quarterly basis is to be raised to South Central Railway by preparing ATD.

37


3)

STORE BILLS

RULES AND PROCEDURES adopted for passing of stores bills.

The procurement of material on WCR is handled by Controller of Stores through his subordinate and unit offices. In WCR, COS Office deals with all material procurement at HQ level, while in units (Division, Workshops, Loco Sheds) concerned unit Stores Officers handle procurement of material for their respective units.

The office of the FA&CAO/WST functions as the associate finance for Controller of Stores and is responsible for liquidating all liabilities entered into by COS on behalf of WCR. All the bills raised by Suppliers for delivery of material are dealt by FA&CAO/WST office and other unit Account Offices for arranging payment to suppliers.

Following offices deal with payment of Suppliers bills on WCR –

-

FA&CAO/WST – All Stock and Non Stock Procurement by COS Office.

-

Workshop Accounts Offices – All Non Stock Procurement and Emergency Stock procurement by their Depot Stores Officers for Workshop.

-

I.

II.

38

Divisional Accounts Offices – All Non Stock Procurement and Emergency Stock procurement by their Depot Stores Officers for Division.

There are following types of store bills–

Stock item Bills – The bills pertaining to procurement of stock items i.e. items kept in the custody of the stores department which are frequently and regularly required and whose unit cost justifies incurring inventory carrying cost associated with these items. Non Stock Item Bills – Items which are not stocked by the Stores Depots but are required by consumers are procured as Non Stock procurement to be delivered directly on shop

General Bills

I.

floor. Bills pertaining to non stock procurements are passed by concerned associate finance offices. Stock Bills -

a. Proforma Invoice – These bills are of 100% Advance Payment received from Stores Branch with the instructions that cheque may be handed over to the representative of Stores Branch. Cheques are handed over to the Suppliers by the representative of Stores Branch after due inspection of material.

b. Advance Bills – These bills are of 100%, 98% & 95% advance payments as laid down in the Purchase Order. c.

Bills against Receipt Order – These Bills are of 100%, 2% & 5% as per purchase Order. The payments are arranged against receipt of material as per specification by the Depot Officers. Bills are passed after comparing the accounts copy of receipt order with suppliers copy and ensuring corresponding credit in purchase suspense.

d. Bills against Railway Boards Orders – These bills are based on the terms and conditions prescribed by the Railway Boards. Bills are generally for procurement of centralized procurement. e.

RITES Inspection Fee Bills – These bills are directly received from the respective zones of RITES (i.e. Northern, Eastern, Western & Southern) After linking the bills with the respective Purchase Order it is being passed.

STAGES OF PASSING OF BILLS : i.

As and when bills are received from firms/COS Office/RITES, same are registered in computer and separate registration no. for each category of bills is provided by the system. After registration of bills they are handed over to the recovery section for verification of bills from recovery register and 39


ii. iii. iv. v. vi.

vii.

then it is handed over to section officer, who allots the registered bills to the concerned bill passing clerk through Material Management Information System (MMIS) Bill clerk, after receiving the bills, connects the bills with concern Purchase Orders in order to carry out necessary internal check as per Purchase Order.

If bill is found in order, necessary check for admitting the amount payable to the suppliers is exercised on MMIS and after that concerned bill clerk passes and forward the same to his section in charge for further scrutiny and authorization.

On receipt of checked bills from bill clerk concerned SO exercise relevant checks on MMIS and forward the same to Accounts Officer, if found in order, for authorization. After being authorized by the Accounts Officer, CO7 (Cash Order) is generated by bill clerk and signed by Section Officer & Accounts Officers.

Approved and Signed CO7 are dispatched for preparation of cheques.

Cheques are prepared by Accounts Office and dispatched to the concerned suppliers through Pay Office. The cheques are dispatched to Supplier through register post.

CODAL PROVISION –

Following paras of different codes deal with Bills and, are being followed while passing the Stores Bills on WCR.

Stores Code – Para 739 and 2825

Accounts Code – Para 1101 to 1107

Engineering Code – Para 1335, 1338 & 1341 to 1345

The extracts of above paras of relevant codes are reproduced below.

INDIAN RAILWAYS CODE FOR STORES DEPTT VOL-I

PARA-739 . Procedure for payment of supplier’s bills in respect of direct delivery orders.—

40

General Bills

(a)

In cases where the payment is made by the Indenter’s Accounts Officer.—The supplying firms will submit one copy of the bill marked ‘Original’ and the railway receipt for the consignment directly to the consignee. Another copy of the bill marked “Duplicate, not for payment” shall be submitted to the Controlling Officer of the consignee. The Controlling Officer will maintain a consignee wise register of such bills and watch the return of the original copy of the bill from the consignee. The consignee after verifying the stores received by him with the relevant Acceptance of Tender/Supply Order/Purchases Order of which a copy would have been furnished to him will endorse a certificate for the quality and quantity received by him and forward the original bill to the Controlling Officer mentioning therein that the receipt has been entered in his numerical ledger and the entry initialed. Any discrepancy in quality or quantity of the stores received by him or the quantity rejected by him, shall be advised to the firm direct, endorsing a copy of his advice to the Controlling Officer and the Purchase Officer. The Controlling Officer on receipt of the original copy of the bill, will countersign and forward the same to the Accounts Officer for payment. Any entry to this effect should be made in the register mentioned above. The firm’s bills should be paid promptly and as far as possible within two months from the date of despatch of the stores and in case the consignment is lost in transit, the consignee should inform the consignor that a claim within the prescribed period should be preferred. In case of unusual delay, the suppliers should be advised to bring the matter to the notice of the Divisional Superintendent or the Administrative Officer of the Department concerned, for which purpose the authority to be addressed should be clearly indicated in the Acceptance of Tender/Supply Order/ Purchase Order. 41


(b)

(c)

In cases where the. payment is made by the Stores Accounts Officer.—The procedure prescribed above should be applied, mutatis mutandis, except that the Controlling Officer will forward the original copy of the bill, duly accepted, to the Stores Accounts Officer instead of to the Indenter’s Accounts Officer. Where 90 per cent payments are made to firms against proof of despatch after inspection, the original Railway Receipt should be sent to the Accounts Officer responsible for payment along with 90 per cent bill advising the particulars of despatch to the consignees.

The Accounts Officer after passing the 90 per cent bill should pass on the original Railway Receipt to the Consignee for taking delivery of the consignments. It should, however, be ensured that there is no delay in the Accounts Office in transmitting the original R/R to the consignee. The; procedure for the payment of the 10 per cent bill will be as described above.

Note.—In the case of direct delivery stores chargeable to Works, Receipt Notes should be prepared by the Consignee in triplicate in form S. 739. One copy of the Receipt Note should be sent to the concerned Accounts Officer and another to the Executive Officer maintaining the Works Registers in terms of paragraph 1440 (A)-E and 1440 (B) E.

INDIAN RAILWAYS CODE FOR STORES DEPTT VOL-II

Para 2825 S Prompt Payment of Bills.—No bill should ordinarily take more than four days to be disposed of in the Accounts Office unless there are defects in it which render in admissible in audit or call for further reference. CHAPTER XI

INDIAN RAILWAYS CODE FOR ACCOUNTS DEPTT

Chapter XI of the code deals with Bills and is reproduced below

42

Para 1101 A1. Introductory. – The document through which a claim is preferred is referred to as a ‘Bill’ in this Code. Bills

General Bills

which are payable by the Railway are referred to as ‘Bills Payable’ and those which are recoverable from other parties as ‘Bills Recoverable’.

Para 1102 A1. Bills Payable. – There are bills which are to be settled by actual payment of cash and bills which do not involve any payment or receipt of cash but are only to be adjusted in the accounts.

Para 1103 A1. All bills which are to be settled by payment in cash are to be registered on receipt in the Accounts Office and subjected to the required checks. Thereafter abstracts of the bills are to be prepared based on which cheques are drawn and payment arranged through the Pay Department. This process is further explained in the following paragraphs. Para 1104 A1. Registration of Bills to be settled by Cash Payment. – All bills which are to be settled by cash payment should be entered in a register of Bills (A. 1104) and should be numbered in consecutive order and the date of receipt should be entered upon them. The number thus allotted to each bill will be referred to as the Accounts Bill Number or briefly as “AB No. or CO-6 No.”. The bills should then be sent to the section concerned for check. After a bill has been checked, the amount for which it has been passed in internal check will be entered in the appropriate column of the Register (A. 1104) provided for the purpose. The register will be so maintained that the particulars of all bills received during each month are shown distinctly. Para 1105 A1. Bills received from other Railways and other Ministries of the Central Government or the State Governments which are not payable in cash but are adjusted in accounts (see Chapter IV) should not be entered in the Register of Bills (A. 1104) but should be recorded separately.

Para 1106 A1. Accounts Enfacement on Bills (for Bills to be settled in cash) – All bills entered in the Register of Bills (A. 1104) should be passed after internal check. On the completion of the internal check (or before detailed check 43


in the case of bills dealt with under the post-check system vide rules in para 813 & 814) every bill should be enfaced showing the amount for which the claim has been admitted by the Accounts Officer, the total amount deducted and the net amount payable The accounts office enfacement on bills should be in Form A. 1106.The head of account to which the total amount of the claim admitted is chargeable and the head of account to which deductions are creditable should be shown on or near the enfacement.

Note. - (1)

In the case of bills on which payments have to be made through another Accounts Officer (Cf. Paragraph 1132) the words “Not to be included in A. 1107” should be distinctly written above the Enfacement.

(2)

Para 1107 A1. Abstracts of Bills Passed. – The bills passed by the Accounts Officer for payment in cash or by cheque should be posted into the Abstract of Bills Passed (A. 1107) The object of this abstract is (i) to reduce to the extent possible the number of cheques to be drawn each day and (ii) to present the various bills passed by an Accounts Officer in a condensed form to the Officer who has to sign the cheques. The entries in the Abstracts of Bills Passed (A. 1107) should be sufficiently full and clear to obviate a reference to the vouchers.

44

The Accounts Office enfacement (Form A. 1106) should be signed by the concerned Accounts Officer. When, however, there is only one Accounts Officer attached to an office (e.g., Divisional Accounts Office or Workshop Accounts Office) and the Officer is away from the station on tour or is on leave or absent from office for unavoidable reasons, the enfacement may be signed by the Section Officer (Accounts) attached to the Section of that office.

The Abstract of Bills Passed will thus give the particulars of each bill, the amounts passed, the amount recoverable and the net amount to be paid. It should show the name of the Bank on which the cheque is to be drawn, details of the payee and the allocation of the charges.

General Bills

The Abstract should be checked with the connected bills and signed by the Accounts Officer. As a safeguard against the inclusion of a bill in more than one Abstract, the enfacement on a bill included in an Abstract should be crossed off by the Accounts Officer signing the Abstract. The Abstract of Bills Passed (A. 1107) should be forwarded to the section preparing cheques. The numbers of the Abstract of Bills Passed (A.1107) should be quoted in all records in which the Abstracts are referred to. The Abstract of each week, fortnight or month should, after their return from the Cashier be bound together and carefully preserved so as to form a record of bills passed for payment. This record should be treated as a subsidiary book to the Daily Abstract of Cash Transactions (A. 304)

Note : The Abstract may be signed by Section Officer (Accounts) in the circumstances in which they are permitted to sign bills, vide para 1106 but all such Abstracts must be countersigned by the Accounts Officer on his return to duty. ENGINEERING CODE

PARA 1335 E Subject to provisions of paragraph 1312 and 1327 to 1332 ante, the bills of contractors for work done or supplies made should be prepared in any one of the following forms according to that circumstances mentioned below against each :(i)

Petty Contract bill, Form E. 1336.

(iv)

Hand Receipt, Form E. 1339.

(ii)

(iii)

Running or On Account bill, Form E. 1337. Final Bill, Form E. 1338. and

The final bill Form (E. 1338) should specifically provide that the contractor concerned accepts the amount billed for as a final payment in settlement of all his claims in respect of the particular work. Bill for work done should necessarily be prepared in any one of the above forms. Bills of supplies submitted on supplier’s own forms may, however, be 45


accepted when prepared in English or Hindi, any further particulars required by the departmental form being added by the disbursing officer. All bills passed against a work order should be noted on the work order. PARA 1338 E The final Bill from (From E 1338) should be used for making final payments, i. e. on closing running accounts for works. Normally only one final bill should be prepared against an agreement or work order. But in cases where groups of annual repair works are included in one agreement or work order, there is no objection to more than one final bill being prepared on the completion of each group or certain groups.

Para 1342 E Other Miscellaneous Payment.--Other payments which an Executive Engineer has to arrange are with regard to pay, allowances and other miscellaneous personal claims of the constructions staff such as advances of pay, travelling allowances, withdrawals from P.F. etc. Such claims should be dealt with in accordance with the rules and orders in the relevant sections of the Indian Railway Codes.

Para 2817 S which will be printed in English, Hindi and the vernacular of the district in which used. Vendors of stores should be encouraged to use these forms which may be supplied free of charge. In the case of final payment on a running contract for the supply of stores, the same form, but printed on yellow coloured paper, will be used, and disbursement made as on final contract certificates. The procedure laid down in paragraph 739 of the Indian Railway Code for the Stores Department should be followed in passing claims for stores supplied.

46

Para 1344 E Pay Order.--This Form (E. 1344) is to be used only in the case of such miscellaneous payments as refund of earnest money, payment of court attachments., & Pay orders will be bound in books and will be machine-numbered. These books will be issued on requisition only to those officers who have been authorised by the General Manager to use them.

General Bills

Para 1345 E General Rules.-Should any of the prescribed forms not be used, care should be taken to see that no particulars, certificate or signature required by the prescribed forms are omitted. The general rules laid down in the following paragraphs should be observed in connection with the claims referred to herein as “bills”.

DO s and DONT s

All suppliers are required to follow the following while submitting their bills for payments. It will facilitate prompt disposal of the bills at Railways end.

A. DO s.

i.

Bills should be in original form and marked as ORIGINAL.

iii.

Corresponding address of firm should clearly be given on bill.

ii.

iv. v.

vi.

vii.

viii.

ix.

xi.

x.

xii.

xiii.

Duplicate copy marked with “not for payment” should also be submitted. Purchase order no and date must be given. Reference of Modification advice (if any)

Description of material should clearly be indicated.

Bank account number and branch name may be given where payment is to be made.

Details of Railway receipt, receipted delivery challan, inspection certificate , CST/VAT number ,Receipt Order/ note and date should be given. All columns of bill should be correctly filled.

Unit rate, quantity, taxes, freight /any other charges (if any) and total claimed value should correctly be filled according to Purchase Order. Claimed amount should be certified in words.

Bill must be signed by authorized person of the firm. Bills should be Pre-receipted with revenue stamp.

47


xiv.

xv.

B. DON’T s

1.

3.

2.

4.

5.

DISCLAIMER:

Any dispute should be settled with COS before submission of bills.

Original Railway receipt, receipted challan duly signed/attested by Gazetted Railway Officer/pink copy of receipt note, Payment copy of inspection certificate, excisable goods invoice(original buyers copy), CST/VAT certificate , guarantee/ warrantee, MODVAT certificate ,indemnity bond,certificate of goods correctly dispatched should be enclosed with the bills. No correction/overwriting are to be done. (must be attested if inescapable)

Photo copy of any documents ( which are required to be submitted in original) may not be submitted .

Do not leave any columns of bills to blank.(xxx marked if no information) Do not submit the bills without requisite documents.

Do not Submit the bills if any dispute with COS/Depot officer is unsettled.

The above information is provided as a guiding factor to suppliers. All statutory requirements are to be complied with even if not included above. The above information does not in any way supersede any Codal provisions of Indian Railways and any extent instruction of Railway Board issued from time to time.


a) The bills are in the proper format i.e. S2817.

b) The bill is signed by the Vendor/contractor, bill passing officer and works accountant.

c) The items of bill, mentioned below, are in complete conformity with the same given in the concerned 48

General Bills

purchase order, Stores code provisions and important letters issued by higher authorities and the following should also be verified:-

i) Unit Rate.

ii) Total amount due.

iii) Terms of payment. i.e. when 90%, 95%, 98%, 100% or10%, 5% and 2% payment is due. iv) Receipted delivery challan.

v) Receipt Note and Acceptance. vi) Inspection certificate. vii) Excise duty invoice. viii) CST/VAT Invoice.

ix) Guarantee & warranty certificate. x) Transport documents.

xi) Necessary Bank Guarantee /security deposit as per the terms of P.O. are being submitted. d) The bill is arithmetically accurate.

e) Funds are available for the purchase and it is certified and allocated to the proper head. f) The recovery of liquidated damages for late delivery of material is done from the supplier’s bill.

g) Wherever the S.D. is due and the bill passing officer has failed to recover the same, the liability of the same should be ascertained and be recovered from the supplier’s bills. h) The net payment payable is certified on the bill. i) Enfacement stamping is done on the P.O.

j) The vital particulars of the bill are recorded on the P.O.

The bills are put up to SO for internal check and subsequently the enfacement on the bill is crossed by the section officer. Section officer ensures that CO7 number is recorded on the 49


bill. Thereafter the bill is forwarded to DFM for approval and subsequently to Books section for preparation of cheques. In the event of a bill requiring any supporting documents or lacking in any respect, it is returned to the concerned executive for fulfilling the requirements.

4)

Procedure through AFRES:

Having passed through the above filters, the bills are then passed for payment through AFRES, where the bill registration, bill passing, and CO7 postings are done and C07 prints are generated. The concerned AA puts the same to SO (XI) for cross checking and verification of accuracy and supervisory checks. The scrutiny is done cent percent basis by SO. Afterwards it is presented to the DFM for approval. In cases, where bill amount is less than Rs.25000/and the Amount of CO7 being less than Rs. 1 Lakh, it is signed by SO himself. Once a bill is approved by the DFM, and being dispatched by the AFRES module, it is sent to books section along with the supporting vouchers for preparation of the cheques. Practically, this is the end of bill passing cycle. The hard copies of the CO6 entries and CO7 for a month are generated and preserved for AUDIT & RECORD purposes. The transactions relating to Store bill are saved in the system and the hard copies are taken out and preserved for future use as and when it is required in response to any query or future verification. Wherever it is necessary, ATD’s/ATC’s are raised, during the course of preparing CO7. If debit is to be raised, ATD is prepared and ATC is prepared when credit to be adjusted and submitted to book section for onward adjustments. Meanwhile, JOURNAL VOUCHERS are also prepared to account the adjustment of ATD/ATC, Transfer Vouchers (in respect of Demand No.16 received from Executive offices , HQ and other Accounting Units) and rectification of errors. The same is prepared in duplicate and submitted to books section for onward adjustments. With this ends the whole cycle of receiving of bills, Passing of bills and accounting in the books of accounts.

50

General Bills

5)

ACTUAL MONTHLY ACCOUNT CURRENT

After closing of monthly account when the Cash Book print and JV print is printed by EDP center such account current is prepared. After receiving final JV print from EDP center the process of Source wise and Plan head wise summarization. of the expenditure. Is done in the section and the same is handed over to Books section for preparing and submission to HQ of Schedules and Account Current for the month.

6)

7)

Monthly statement of Plan head wise expenditure

After closing of monthly account and printing of JV one statement showing the Plan Head wise Budget grant and the expenditure to end of the month is handed over to EFFY section for the preparation of MPR. MONTHLY BILLS POSITION

The details of Bills received. Passed and returned is provided to EFFY section with the bifurcation showing no. of bills passed through EFT/ECS and through Cheques.

8)

BI MONTHLY STATEMENT.

The details of Security Deposit deducted through bills, year wise break up is prepared and handed over to EFFY; section for onward transmission the details to HQ.

9)

HALF YEARLY STATEMENT

The Half yearly suspense review for Security Deposit by showing year wise items over one year old, less than one year old, amount more than 25,000/- and less than 25.000/separately.

10)

ANNUAL STATEMENTS:-

i)

The Annual suspense review for Security; Deposit by showing year wise items over one year old, less than one year old, amount more than 25,000/- and less than 25.000/- separately.

ii)

Statement of dividend payable to General Revenue. The 51


iii) iv)

v)

vi) vii)

viii)

11)

52

figures for such statement is extracted from Actual account current of March Annexure-D Statement of expenditure of important open line works and new construction. Figures are called from Divisional Accountant for any open line new construction work in the current financial year.

Annexure G (Block Account- TVRA) Figures are taken from the actual account current of March. of the current year and closing balance of previous year for the asset which are in existence since beginning of the division. By these figures the block account is compiled source wise.. Annexure –E Expenditure relating to strategic lines.

DRF account. After receiving the Daybook summary from EDP Center plan head wise statement for DRF is prepared and submitted to HQ. Statement no.38. Figures for this statement is taken from R.A.R. to end of March every year P.U. 28 under demand no. 3 to 13.

Appropriation account (credit to capital of retired assets) Figures for this statement from actual account current of March. Posting and reconciliation of Works Expenditure:

Procedure: This Assistant gets the cash print/listing from Assistant 4 duly posted with particulars of expenditure. From this information postings are made in the Day Book which contains the Work Folio No.(name of the work) and amount. Each entry in the listings is summarized in the Day Book Department-wise and total struck. These totals are taken to the Abstract Book, which contain different Folios for different work. These registers are maintained as per the working arrangements of the Works Accounts Branch since this Assistant who has to ensure the corresponding entry for the same amount in the Works Registers does the reconciliation of the Day Book postings with the Works Accounts Branch.

General Bills

While reconciling, suitable remarks should be made in the Day Book against each entry whether reconciled or not and signed. If not reconciled, the reasons for non-appearance of the entry in the Works Register or vis-à-vis need to be investigated. The reasons for non-reconciliation could be mistake in Work Folio No., mistake in Amount posted, wrong allocation, posting in the following month, etc. It should be ensured that a Transfer Voucher for book adjustment rectifies either by JV or the mistake.

12)

In terms of Para 803-AI, the work of a clerk is required to be Test checked by the subordinate supervisory staff and the Gazetted Officer in charge of the section and the result of the test check should be systematically recorded and submitted for review at prescribed intervals. Test check should be carried out according to the scale laid down in the Annexure - I and the results of the test check should be recorded in a separate register to be maintained for special purpose in accordance with the instructions given in Accounts Code.

12.1) NECESSITY FOR TEST CHECK:

TEST CHECK:

Test check is correct index of judging efficiency of the work of the clerks. This also serves the purpose constituting the effective medium of correcting defective work and educating the clerks about Rules and Regulations to be followed in internal check. It is, therefore essential that the orders governing the Test check of the clerk should be scrupulously implemented and the Test check carried out every month and without fail by the supervisory staff and Gazetted Officers.

12.2) TEST CHECK SUPPLEMENTAL TO DETAILED CHECK:

It should be remembered that the test checks do in no way supersede the detailed checks which have 53


been separately prescribed in the Codes, Manuals and /or other administrative instructions and should be taken as supplemental thereto.

12.3) POLICY TO BE ADOPTED FOR TEST CHECK:

The general policy to be followed in regarding to test check is as follows: -

•

•

•

•

•

12.4) EXTENT OF TEST CHECK TO BE CONDUCTED:

54

That test check by Gazetted Officers to be really effective & should take note of the nature of work and the circumstances under which it is done;

More routine check of certain number of items without selective examination should be avoided; The sectional official should have a firm grip over the important aspects of work in his branch office by undertaking a test check of these items from day to day rather than confining himself to a routine check of a few items; and

The test check should cover the work of as many clerks as possible. Keeping in view the above policy, test check should be conducted according to the scale laid down in Annexure - I.

The extent of test check to be done by the Gazetted Officers should include all aspects of the work, which do not in the ordinary course pass through their hands in day to day working. It is incumbent on the Section Officers in charge of the various Sections to test check without omission all the various phases of work listed in Annexure - I relating to their charge every month or at the specified intervals. In covering these items of work from month to month, care should

General Bills

be taken to select the work done by different clerks doing the same phase of work, so that the work of the various clerks placed under their supervisory control is brought under the purview of their test check in rotation.

12.5) SELECTION OF CLERK(S) FOR TEST CHECKING THE WORK:

Test check being intended to ensure professional efficiency and improving the effectiveness of the internal check, should be adequate and is to be carried out in a systematic and intelligent manner. Clerks whose work has to be test checked should be selected on the basis of random sampling and this selection should not be reduced to a pre-determined routine matter. Selection of particular clerks, whose work is to be brought under test check by the, Senior Section Officer during a month should be made confidentially by the Branch Officers (where two officers exist by the Senior Officer) All phases of work done by the clerk(s) so selected should be subjected to test check to the extent shown in Annexure - I . The selection of individual clerk for this purpose should be so made that all the different phases of work in the Section would come under test check in their turn during the course of each half-year. The selection of individual clerks from month to month should be so made that work of all the clerks in the section should come under test check of either Branch Officer, or Senior Section Officer

12.6) Procedure for Test-Check:

The Test check should, apart from verification and thorough examination of facts and figures embodied in various documents brought under test check, be directed to an intelligent scrutiny to find out whether the clerk(s) understand their duties and rules governing them and do the work allotted to 55


them diligently and whether there is any tendency to do the work casually. Test check should particularly be conducted at least once in a month by SO and all officers. The test checks should not be of routine nature rather they should focus on system improvement, procedural lacuna and lapses. The underlying idea should be efficient disposal without any violation of rules and procedures. The checks should also reflect the updated skills of the officer.

- [PARA 803 A1]

12.7) Recording of results of Test- Check; _

SR NO.

Item of work test checked

1

2




Result of Test check 6


The test check register should be opened separately by each official, the test check is required to be made in accordance with these orders. The entries made in the register should contain adequate particulars so as to facilitate the identification of the entry/voucher subjected to test check and entry/voucher should be endorsed “Test checked” under the dated initial of the official conducting the test check.

The result of test check should be recorded systematically in a manuscript register in the form given below:-

The exact nature of the discrepancy noticed should be briefly indicated in the appropriate column of the test check register. If the discrepancy calls for a lengthy note, the same should be given as a separate note for further disposal being done on the connected file(s) and a cross reference to this note should be recorded in the relevant column of the Test Check Register. 56

The observations as a result of the test check should be clearly

General Bills

indicative of the appraisal by the checking authority of the quality of performance of the clerks whose work came up for test check.

12.8) Test- Check of registers:

Another important item of test check is the inspection of different registers by the Gazetted Officers. The intervals at which different registers maintained in Accounts Offices should be put up for inspection by Officers.

12.9) Periodicity of submission of Test- Check register to Officers:

13)

Every test checks register should be provided with an inspection sheet below the front page indicating the month of test check, date on which put up and the date reviewed by the Officer concerned. The test check registers of Section Officers and Senior Section Officers should be put up to the Branch Officer on the 10th of each month indicating the test check done on the work of clerk in the preceding month for review and orders, where necessary, by the Branch Officers. Important tips for AFRES USERS:





Each and every user in the section including .S.O. is allotted separate ID name and password. Supervisor o the section will ensure the periodical change of password exists for each and every user of the section. The entry of such effect is to be kept in the manuscript register opened for the purpose. The period for changing in password will be at the interval of at least one month.

After customization of AFRES programe, SO (In charge of the section) will run Audit trail of their section. This is to be run at the interval of 15 days and obtain signature of concerned officer. SO will be given feasibility with their user ID and password for accessing and running Audit trail. It is also to be ensured by supervisor of the section 57


58

that the ID and password is not to be shared by more than one staff of the section.

If there is any modification in any rules/programme due to Railway Bd’s policy/circular /orders or due to any reasons the modification in the AFRES program is done the proper testing of such changes is to be carried out and results of such effect to be recorded before final implementation. The detail procedure is annexed as AFRES USER MANUAL separately.

Chapter 3

CONTRACTORS BILLS 1.0)

Contractors Bills

On account and final bills are received from executives in prescribed format i.e. 1337E, 1338E of Engg. Code. CO6 is taken from AFRES and internal checks are carried out As per Para 1354 E &1355(ii) of Engg. Code. If the bill is found correct in all respects CO7 prepared and is passed for payment through AFRES module.

1.1)

Internal checking of Contractor bills

Standards of financial propriety are followed in terms of Para 116F during any internal check of bill. On receipt of bills, CO6 is taken as per Para 1106-A1. Internal checks are carried out on all bills. “Scrutiny of Expenditure” is carried out as per Para 815 A-1, 816A-1 & 1355-E on all bills. If found correct in all respect, Co-7 are prepared and passed after ensuring the availability of funds. Apart from the above the following are also to be ensured ( The list is elaborate not exhaustie):•

•

•

•

•

The bill is original and in the prescribed FORM NO.1337-E & 1338-E and it is prepared according to the instructions given therein. The expenditure relating to the work is covered by a sanctioned estimate. The expenditure is covered by budget allotment.

Reference to the Agreement/Work Order No. & Date has been quoted therein. Where a formal Contract Agreement has not been entered into but work has been carried out on the strength of acceptance letter the sanction of competent authority has been received along with the bill for arranging provisional payment pending sanction of Contract Agreement. 59


•

•

•

•

•

• •

•

•

•

•

• 60

If work has been carried out beyond completion date it should be seen whether sanction to the extension has been received along with the certified copy of sanction accorded by the competent authority. Sanction exists for provisional payment in excess of agreed quantities pending issue of a supplementary work order and if properly sanctioned. The rates/units/quantities have been checked and verified with reference to the contract agreement/ work order. The rates to be paid for the bill are strictly as those detailed in the schedules attached to the Agreement and that rates higher than those included on the work order are not paid without the specific sanction of the competent authority. With regard to SOR ITEMS - Whether the bill has been preferred correctly as per the percentage above SOR as per contract agreement/work order based on accepted tender conditions. The bill is arithmetically correct cent percent. Divisional Accountant checks the recovery statements and there was no delay in taking measurements and in preparing bills after measurements. All the requisite certificates & the signature of the authorized executives have been recorded on the bill. The requisite certificates regarding verification of Measurement Book have been recorded over the signature of the Divisional Accountant. The quantities exceeded are according to the Plan & Estimate and excess are within the permissible limits. The quantities for 'ON ACCOUNT' have never exceeded the estimated quantities on actual work done at the time of payments. Gazetted Officer has attested all the corrections in the bill.

Contractors Bills

•

•

•

•

•

The Security Deposit has been correctly recovered from the 'ON ACCOUNT BILLS' vide (1244-E)

If the currency of Guarantee Bond has expired, whether the executive has asked for withholding the amount of bill in deposits towards Security Deposits. The contractor has signed CERTIFICATE’ in the final bill.

the

‘NO

CLAIM

If final bill is signed 'UNDER PROTEST' by the contractor, the requirements of PARA-1485-E are fulfilled.

If final bill is signed 'UNDER PROTEST', claims of the contractor have been ascertained and have been dealt with keeping in view the remarks offered by the responsible Executive regarding acceptance or rejection of the claims.

NOTE: Such Final Bills signed ‘under protest’ should not be admitted in internal check unless the requirements of Para-1485-E are fulfilled.

•

•

•

•

A certificate of check of measurements & the results of other examinations regarding satisfactory completion of work has been recorded by ADEN on the final bill. Any outstanding recoveries against the contractors, which necessitate with holding of payment against his bill has been affected with reference to the Executive’s letter for withholding the amount.

The Executive has requested for with holding of amount from the final bill, & the same has been affected by way of crediting to Deposit expenditure. The executive’s reference and all other details have been recorded in the said register/account meant for the purpose. The 'On Account (Running) & Final Bills are checked & compared with the contractor's ledger (From E-1483) 61


•

2.0

Cash Imprest: General /Fuel (Relative Para for check of cash Imprest A/C 1601- A-1, 1050 to 1055-F1

Income Tax, surcharge, education Cess & other statutory levies are deducted as per prescribed rate.

2.1) Objectives:

•

To ensure that the procured items are for the purpose for which imprest has been sanctioned.

•

•

•

•

2.2)

Internal Check: -

Appropriate Amount is debited to correct head of allocation to ensure that expenditure accounts reflect true and fair picture under each proper head, subhead. To ensure that regular purchases are not being made from imprest. To see that tender item has not been purchased.

That the expenditure is within the prescribed limit.

On receipt of bills, CO6 is taken as per Para 1106-A1 i.e. “Registration of Bills”. Internal checks are carried out in terms of Para 1601- A-1,1050 to 1055-F1.If found correct in all respect, Bills are passed and Co-7 are prepared after ensuring the availability of funds. Cash Imprest Bills are passed once in a month. If recoupment needed more than once in a month on unavoidable circumstances then approval of Branch Officer/ADRM approval is required. Apart from the above the following internal checks are also to be exercised while scrutinizing imprest Bills: -

•

•

•

•

62

Correctness of entries in the Imprest account is checked with reference to supporting vouchers. Arithmetical accuracy .

Imprest has not been utilized to liquidate such claims, which should ordinarily be pre-checked.

Supporting vouchers are genuine and full legal Acquaintance for the payment made.

Contractors Bills

•

•

•

•

•

•

•

2.3)

Procedure for passing:

3.0

Standards of financial propriety are followed in terms of Para 116F before commencing any internal check of bill. All Imprest bills are received from the concerned executives in form 1404 E. CO6 is taken and internal check is carried out. If found correct in all respects as per codal provisions, CO7 is prepared and passed for payment through AFRES module.

3.1)

Procedure for passing:

Standards of financial propriety are followed in terms of Para 116F before commencing any internal check of bills. Pay orders are received from concerned executives in prescribed format i.e. G 1688A/G396 B. CO6 is taken and internal check carried out. If bills confirm to the codal provisions and found correct in all respects, CO7 prepared and passed for payment through AFRES module.

Ensure that no tender item has been purchased.

Assure that the cash Imprest bill is submitted in the standard proforma.

Ensuring that the signing authority have endorsed the bills. Assure that the imprest holder has countersigned all vouchers.

Assure that no purchases/expenses other than those arising out of emergent situations or unforeseen circumstances are being made out of imprest i.e. regular purchases are not being made.

Assure that the imprest holder mentions details of previous recoupment and current purchases/ expenses do not exceed the prescribed imprest limits. Assure that the expenditure has been allocated to the correct head of account (Allocated abstract)

Pay Order

63


3.2)

Internal check on Pay Orders:

3.2.1) Retention Money:

3.3)

On receipt of bills, CO6 is taken & internal checks are carried out on all bills. The pay orders are passed according to the Para 821 AI. In addition to above, the G.C.C. conditions are also ensured to be adhered to. If credit is available in suspense ledger, and found correct in all respects the Co-7s are prepared and passed for payment. Any deposit remaining unclaimed beyond time limit as prescribed in Para 321 A I to be credited to detailed head “MISC. Receipts” after approval of F.A.&.C.A.O.

Procedure for passing will be same for all the heads .

Arbitration Fees /Award/ Court Fees/:

3.3.1) Internal Check:

•

•

•

•

In addition to above, Railway Board’s guidelines and relevant SOPWCRGEN Para are to be referred for competent authority’s sanction/ CLA’s opinion. Copy of court order to be examined and If found correct in all respects, the Co-7s are prepared and passed for payment

4.0)

64

Whether the amount proposed to be paid is as per Arbitration Award only.

Whether any claims other than accepted in Arbitration have been considered in proposal.

Whether Contractor has accepted the Arbitration Award.

Whether the Payment of award has been vetted by Legal branch and accepted by the competent authority.

Telephone Bills. a)

The telephone bills are verified with reference to the telephone No.

Contractors Bills

b)

The opening calls are verified with previous reading.

d)

The bills should be duly countersigned by ADSTE (T)

5.0)

MISC.ADVANCE (EXPENDITUREP-223 & 610–A1 (Para No.223 Chapter VI of Accounts Code Part I)

c)

If the calls exceed the limit as specified by GMs circular for residential phones, the same should be certified for excess calls whether it is official or private calls. If excess calls are on Private Account, the same is to be recovered by debiting the amount to MAE and credit is watched through ESTT. (GAZ)/ESTT.(NON GAZ.) For recovery through pay sheets.

When the bills are sent to accounts office for verification and are within due date and the same are passed within the stipulated period to avoid DELAY PAYMENT CHARGES.

5.1) Procedure:

5.2)

Standards of financial propriety are followed in terms of Para 116F before commencing any internal check of bills. Pay orders are received from concerned executives in prescribed format i.e. G 1686/A/G, 396 B. CO6 taken and internal check carried out keeping in view the Para 223 A-I. If found correct and as per codal provision then CO-7 is prepared and passed for payment, through AFRES module. Internal Check:

If the expenditure incurred cannot be booked to Final Head at the time of incurring the expenditure or if the allocation of expenditure is not known at the time of incurring the expenditure or the expenditure cannot be booked to any other head, the same is also booked to MISCELLANEOUS ADVANCE. Generally, the following items are booked to this Suspense Account in this office:

(a) Expenditure incurred for Minister’s visit, for the deposits made for Water, Telephone, Electricity and Gas connections etc. (b) ATD/TCs received from other units for those items 65


for which details of allocation are not known.

(c) Miscellaneous Advance is debited.

(d) When pay orders for RRB exams, are passed.

(e) Expenditure Sections (X-I,X-II) passes some Expenditure bills for which allocation is not known.

(f) Misc. items (expenditure of which can not be booked to any other head) (g) Debit postings of Suspense Register have to be done by taking details from other sections viz Books. 5.3) Clearance:

•

•

•

•

66

After getting details of expenditure from executives JV have to be prepared by minus Debiting Misc. Advance and Debiting to final proper head.

Deposits paid for water, telephone connections are cleared by booking the expenditure to Final Head, after receiving the vouchers. Wherever details of expenditure/transaction are not available and possibility of booking the expenditure to Final head is remote, in such cases, write off option may be exercised, after taking sanction of competent Authority. Credit side postings of this Suspense Register is to be done from the JV entries prepared by the suspense section or JVs of the respective section who has debited the amount to this suspense head. the same is posted on debit side in the MAX ledger, and the balance amount, which has been deposited by executive to station earning through MR is posted on credit side in the MAX ledger. The same is reflected in the book through MCR/ divisional sheet received by book section from HQ. Having done so, the register is totaled monthly and reconciled with that of General books available in the books section.

Contractors Bills

6.0) Procedure for paper securities.

6.1)

The procedure according to which security deposits are to be dealt has been laid down in chapter xviii Accounts code Vol.1. Para 1817 of AI elaborates the procedure to maintain the register for recording the receipt and return of all security deposit received. All paper securities are released/ returned only after receiving the letter from executive duly recording the reasons for the same. The entry is made in the register A1817 and signed by the dealing clerk / SO/ ADFM. Internal check of Paper Securities in Accounts Office. •

It may be ensured that the securities are valid including the maintenance period of respective work ,if any.

•

( It is important to ensure that copy of paper security is sent to bank along with confirmation letter , so as to ensure the genuineness of the signatories etc.)

In case of B.G. it is in prescribed format (as per appendix X of A1) and bonafide is to be verified. it is correctly drawn up, stamped and vetted by law officer.

•

To obtain written confirmation from the issuing bank to verify the genuineness of paper security .

•

It is valid in respect of the amount and the period for which it has been drawn.

•

•

•

It is to be seen that the executive has certified that the checks mentioned in above Para have been carried out. In case of Bank Guarantee submitted by the contractor, it is to be ensured that it is correctly drawn up and is adequately stamped as advised by the Law Officer. It is genuine and accepted by the Law Officer.

In case of securities in the shape of Bank Guarantee, the date of expiry should be watched and timely action taken for its renewal/encashment as the case may . 67


•

•

•

•

•

If the Associate Accounts Officer considers that the action taken by the executive for renewal/extension is not likely to materialize before the actual date of expiry , the Accounts Officer shall advise the bank concerned to deposit the amount due under the Guarantee . he may depute a staff to the bank concerned to encash the BG. The amount and period shown therein is in accordance with the terms and conditions of the contract. The depositors’ title thereto is clear.

The endorsement has been made in proper form.

No payments on any running bills is to be made to the contractor without carrying out the above checks on paper securities.

•

•

•

6.2)

Return of appropriation of Paper Securities :

•

•

68

To enter the details like date of expiry, description of the contract and contractor’s name of such securities in manuscript register in form A. 1817.

Each entry in the register of paper securities or return of any security should be attested by an Accounts officer. Separate page should be opened for each type of security.

The register should be put up to the Branch Officer every month. Before releasing any paper security, the departmental officer should furnish necessary certificate that there is no dues left with the contractor.

On receipt of intimation from the departmental officer that the securities deposited in a particular case are to be returned. may be sent back and the date of return entered at the same time in the register of Securities (A1817), before returning the securities they should be endorsed back to the parties concerned.

Contractors Bills

•

•

6.3)

Safety measures to be adopted to avoid likely frauds

•

•

Before returning the security deposits the Accounts officer should in all cases satisfy himself, from the facts available, that the purposes for which a security was deposited has been satisfactorily served and there are no claims of the railway against the party whose security deposits are being returned. BG obtained towards Security Deposit for due fulfillment of the work should be released only after the expiry of the maintenance period if any and after passing the final bill based on “ no claim certificate” furnished by executive.

The genuineness of the paper security should be strictly checked. If any doubt arise about the genuineness of the security, bank authorities may be contacted personally with the original paper security, since it is very difficult to differentiate between a good quality coloured Xerox and original one and originality can not be ensured by sending the Xerox copy of paper security while asking for confirmation from bank.

It is generally seen that paper securities received with tenders are annexed in tender file and allowed to move along with the movement of tender file. Such frequent movement of original paper securities along with tender file should be avoided because there are chances of replacement of original security with duplicate one during transit.

Original paper securities are to be kept in proper safe custody (even in executive offices before sending to accounts office) and efforts should be made that such securities are in reach of only authenticated staff/ officers. 69


6.4)

Procedure for Bank Guarantee.

All Bank Guarantee is dealt under Para 1815 of AI. Railway Board vide their letter no.2005/AC/II/25/19 dated 0809-2005 have also issued guidelines for streamlining the procedure regarding Guarantee bonds submitted by contractors. Steps to be taken by Executives and Accounts Dep’t to deal with G.B.s are laid down in detail in this letter. Three months advance letter is being issued to executive with a copy to concerned bank for all those cases going to be expired so that it can further be extended or released as per requirement of work before its expiry date. If nothing is heard from the executive within time, which is one month before the expiry of validity date, then it got encased and deposited in the Railway Accounts duly intimating to concern executive.

6.5)

6.6)

70

Procedure for FDRS/TDRS/STDRS etc.

All above paper securities are dealt in accordance with the PARA 1813 of AI. In this Para it has been mentioned, that once received , the documents should be first scrutinized to see they are genuine, that the depositors title thereto is clear and the endorsement have been made in proper form. For this a register in form A 1817 is maintained. To follow these instructions all the executives have been asked by this office that all the FDRS will only be entertained if the concerned issuing bank verifies the same. The register is now also attested by concerned ADFM. The dealing clerk as well as concerned section officer signed in the FDRs by putting the serial no. of Register on FDR/Paper securities. Procedure for DDs/BCs/Pos

In this connection, all the above paper securities encased before their expiry are kept in RM Deposit Suspense. The amount will be released only after receiving the letter from the executive duly recording the reason for releasing the same. This amount is released through Pay Orders.

Contractors Bills

7.0)

Maintenance of Various Registers:-

7.1)

Maintenance of Retention money register: Para 1244 E

Retention money is deducted from contractors’ bills against security deposits. It has Credit balance and suspense ledgers are maintained against each contractor. These ledgers are posted with the help of cash print, JV and reconciled with G.B. figures every month. Retention money is released to the contractors as and when P.Os are received from executives by adopting procedures as that of passing R.M. In terms of Para 321A, a list of more than 3 years old items, every six month is prepared and amount can be transferred to Railway earning, with the approval of FA & CAO.

7.2)

Deposit Work Register: Para 1852 E

Credit is received as and when other parties deposit amount to railways to get their work done. The head is debited as and when the bills are passed. Departmental charges are debited annually on receipt of T.V. from concerned executives. The same is reconciled with G.B. every month. A register is maintained as per form E-1852.

7.3)

Objectionable Item Register:

Objectionable items Register is maintained in form A 854. Posting to be carried out in terms of A 856 and A 857. Half yearly and yearly statement of unsanctioned expenditure which is submitted to H.Q.is based on this.

7.4)

7.5)

Saving Register:

Saving register is maintained in form A 855.During internal check of bills if any amount found in excess of actual amount due then the excess amount will be noted down in the register. Commercial Tax Register.

Commercial Tax Register is available in AFRES Module as well. Whenever any tax deducted from contractor the credit 71


7.6)

7.7)

is available in the register. Monthly/ Quarterly amount is paid to Coml. Tax Officer Circle-1 Bhopal along with the list of contractors. Forms 32 are being issued to contractors on annual basis. Deposit ‘L’ Register.

Through Division Sheet amount deposited by outside contractors for temporary electrical connection is posted in Deposit ‘L’ Register. A list is sent to Electrical Deptt. for confirmation that the amount deposited by the party is to be refunded or otherwise. If not to be refunded, then the same will be transferred to final head of allocation i.e. 00862632. TEST CHECK REGISTER.

7.7.1) INTRODUCTION :

In terms of Para 803-AI, the work of a clerk is required to be Test checked by the subordinate supervisory staff and the Gazetted Officer in charge of the section and the result of the test check should be systematically recorded and submitted for review at prescribed intervals. Test check should be carried out according to the scale laid down in the Annexure - I and the results of the test check should be recorded in a separate register to be maintained for special purpose in accordance with the instructions given in Accounts Code.

7.7.2) NECESSITY FOR TEST CHECK:

72

Test check is correct index of judging efficiency of the work of the clerks. This also serves the purpose constituting the effective medium of correcting defective work and educating the clerks about Rules and Regulations to be followed in internal check. It is, therefore essential that the orders governing the Test check of the clerk should be scrupulously implemented and the Test check carried out every month and without fail by the supervisory staff and Gazetted Officers.

Contractors Bills

7.7.3) TEST CHECK SUPPLEMENTAL TO DETAILED CHECK: It should be remembered that the test checks do in no way supersede the detailed checks which have been separately prescribed in the Codes, Manuals and /or other administrative instructions and should be taken as supplemental thereto. 7.7.4) POLICY TO BE ADOPTED FOR TEST CHECK:

The general policy to be followed in regarding to test check is as follows: -

•

•

•

•

•

7.7.5) EXTENT OF TEST CHECK TO BE CONDUCTED:

The extent of test check to be done by the Gazetted Officers should include all aspects of the work, which do not in the ordinary course pass through their hands in day to day working. It is incumbent on the Section Officers in charge of the various Sections to test check without omission all the various phases of work listed in Annexure - I relating to their charge every month or at the specified intervals. In covering these items of work from month to month, care should be taken to select the work done by different clerks doing the

That test check by Gazetted Officers to be really effective & should take note of the nature of work and the circumstances under which it is done; More routine check of certain number of items without selective examination should be avoided;

The sectional official should have a firm grip over the important aspects of work in his branch office by undertaking a test check of these items from day to day rather than confining himself to a routine check of a few items; and

The test check should cover the work of as many clerks as possible.

Keeping in view the above policy, test check should be conducted according to the scale laid down in Annexure - I.

73


same phase of work, so that the work of the various clerks placed under their supervisory control is brought under the purview of their test check in rotation.

7.7.6) SELECTION OF CLERK(S) FOR TEST CHECKING THE WORK:

Test check being intended to ensure professional efficiency and improving the effectiveness of the internal check, should be adequate and is to be carried out in a systematic and intelligent manner. Clerks whose work has to be test checked should be selected on the basis of random sampling and this selection should not be reduced to a pre-determined routine matter. Selection of particular clerks, whose work is to be brought under test check by the, Senior Section Officer during a month should be made confidentially by the Branch Officers (where two officers exist by the Senior Officer) All phases of work done by the clerk(s) so selected should be subjected to test check to the extent shown in Annexure - I. The selection of individual clerk for this purpose should be so made that all the different phases of work in the Section would come under test check in their turn during the course of each halfyear. The selection of individual clerks from month to month should be so made that work of all the clerks in the section should come under test check of either Branch Officer, or Senior Section Officer

7.7.7) PROCEDURE FOR TEST-CHECK:

The Test check should, apart from verification and thorough examination of facts and figures embodied in various documents brought under test check, be directed to an intelligent scrutiny to find out whether the clerk(s) understand their duties and rules governing them and do the work allotted to them diligently and whether there is any tendency to do the work casually. 74

Contractors Bills

7.7.8) RECORDING OF RESULTS OF TEST CHECK:

The result of test check should be recorded systematically in a manuscript register in the form given below.

Sl.No


Extent of Test check prescribed

Particulars of vouchers selected for test check

1

2

3

4

Name of the SO / SSO(A) who had test checked the item 5


6


The test check register should be opened separately by each official, the test check is required to be made in accordance with these orders. The entries made in the register should contain adequate particulars so as to facilitate the identification of the entry/voucher subjected to test check and entry/voucher should be endorsed “Test checked” under the dated initial of the official conducting the test check. The exact nature of the discrepancy noticed should be briefly indicated in the appropriate column of the test check register. If the discrepancy calls for a lengthy note, the same should be given as a separate note for further disposal being done on the connected file(s) and a cross reference to this note should be recorded in the relevant column of the Test Check Register. The observations as a result of the test check should be clearly indicative of the appraisal by the checking authority of the quality of performance of the clerks whose work came up for test check.

7.7.9) TEST CHECK OF REGISTERS:

Another important item of test check is the inspection of different registers by the Gazetted Officers. The intervals at which different registers maintained in Accounts Offices should be put up for inspection by Officers has been prescribed in Appendix VIII of the Railway Code for the 75


Accounts Departments-Part-I. In addition to these Registers, the Registers as detailed in Annexure to this chapter should also be put up at the prescribed intervals for perusal of the Officers concerned. Details of these registers may be noted in the REGISTER OF REGISTERS.

7.7.10) PERIODICITY OF SUBMISSION OF TEST CHECK REGISTERS

TO OFFICERS:

Every test checks register should be provided with an inspection sheet below the front page indicating the month of test check, date on which put up and the date reviewed by the Officer concerned. The test check registers of clerks and Section Officers should be put up to the ADFM/ SR.DFM on the 10th of each month indicating the test check done on the work of clerk in the preceding month for review and orders, where necessary, by the Branch Officers. ANNEXURE –I

Sl.No

Description of the Work

Extent of check by Gazetted Officer.

Extent of check by SO(A)/SSO (A)

1

Contractor’s Bills

1 running bill and one final bill every month

2 running bills and final bills every month

3

Imprest Account

1 bill every alternate month

2 bills every month

2 4 5 6 7 8 9

76

Misc.Bills

Agreement and work orders Posting of Suspense Register Journal Vouchers

Completion Report

Contractors Ledgers Objectionable Items Register

1 bill every month

3 bills every month

1 item every month

2 items every month

1 JV every month

2 JVs every month

General Review every month 1 completion report every alternate month

To be checked in respect of bills test checked vide item 1 above General review every alternate month

3 entries in every register and general review One completion report every month

To be checked in respect of bills test checked vide item 1 above

General review and check of 2 entries every month

Contractors Bills

8.0)

Completion Report:

All completion reports drawn by executives are received in the form 1706 E and the same are verified as per Para 1712 E. It is made sure that procedure/rules as per Para 1708 E to 1711 are followed. CR’s of unfinished works are drawn as per Para 1713 and completion estimates verified as per Para 1714E, If found correct in all respects, it is verified and returned to executives for obtaining sanction of competent authority.

8.1)

ACCOUNTS VERIFICATION OF COMPLETION REPORT :

In the Accounts Office, the Completion Reports should be scrutinized after test checking the correctness of postings. It should be seen that: I.

II.

IV.

III. V.

VI.

VII.

VIII.

They have been prepared in the prescribed form and the entries therein correspond with the particulars of the sanction and booked outlay. There is no delay in the preparation of the Completion Report, after completion of the work.

Brief explanation has been forthcoming wherever necessary for excesses or savings vide Para 1706E. All final bills relating to a work have been correctly posted in the accounts of the work.

The satisfactory explanations have been furnished for excesses and savings, both in quantity and amount.

The materials charged to the work, but not utilized have been returned to the Stores/transferred elsewhere and the value credited to the work.

The credit for the released materials provided for in the estimate has been adjusted against the work concerned. The requisite certificate has been recorded to the effect that necessary addenda and corrigenda to the list of buildings have been issued, if the completion 77


report relates to construction of quarters/service buildings.

IX.

A certificate to the effect that necessary entries have been made in the siding register/register of deposit works is recorded in all Completion Reports relating to assisted sidings/deposit works.

9.0)

Issue and Disposal of:

9.1)

TDS/ INCOME TAX RETURNS:

Preparation of TDS Certificates and Filing Annual Return of Tax collected: After closure of the cash transactions of the financial year the data bank available in the Section Files of Codes 300 & 301 are compiled with the help of DBA and the certificates are prepared and printed. Before printing the certificates the total amount of TDS is reconciled with the ledger figures. A summary of tax collection is also printed for the purpose filing the return of Tax collected.

9.2) ATD/ATC

Adjustment of ATD/ATCs:

The expenditure pertaining to this Division incurred by other units are transferred through ATD/ATCs. The debits include those of the bills passed for stores, transfer of materials, workshop debits of POHs, Stock Adjustment Accounts, debits on Work Orders placed, transfer of deposit credits/debits, Stores Monthly Summaries, etc.

9.2.1) Procedure

78

The ATD/ATCs are received from Books Section after registering in the Inward Register. The same is acknowledged by the Assistant and entered in his own ATD register allotting a serial number starting one for the current financial year. The register should contain ATD No., Month of receipt, and Nature of debit, Amount, Unit transferring the debit, acknowledgement and a remark column. The ATDs, once registered, are sent to the Budget Supervisor by obtaining

Contractors Bills

acknowledgement against each entry. These ATDs are either accepted by the Executives or returned unaccepted. If accepted, the funds availability is certified with initials of the budget supervisor or his representative with classification of the expenditure. The classification has to be checked with reference to the nature of debit and Finance Code Volume II. If agreed with the classification a JV is prepared by debiting Demand and minus debiting the unit transferring the debit. The details of ATD/ATC should be given in the narration as far as possible. After the JV is prepared, necessary entry is made in the ATD Inward Register against that ATD and put up for signature of SO/ADFM. After JV is signed, the same is handed over to Books Section for recording the adjustment against each ATDs delivered by them the JV is handed over to Budget Section by the Books Section. If the ATD is returned unaccepted, it should be seen whether the reasons offered by the Budget Supervisor or Executives concerned are correct and sufficient. E.g. Reasons like “Not pertaining to BPL Division” should not be accepted but sent back to Budget Section (WAB), if necessary, through a formal letter to get the reasons recorded as to why and how the ATD is not pertaining to this Division. Otherwise, the chances of refusing the ATDs returned to the parent unit are greater. Of the expenditure of any unit should, as far as possible, be reflected in the same quarter of the year so that disputes may be reduced to a minimum in the TD meetings. The last date for handing over the JV to Budget Section is normally 21st of the following month or a date advised by them as per target dates set by FA&CAO for submission of Account Current. Later, the ATD/ATCs are arranged in the order of their entries in the JVs and JVs in the order of their serial number/monthwise and bunched together and preserved for record. The JVs are normally kept within the section’s records till closure of the next financial year and after that sent to record section.

Note: The raising of debits and credits pertaining to Intra and Inter railway are now being carried out through E-Recon. Login 79


10)

I.D and password are given to each accounting unit and different sections of the accounting unit so that the debits/ credits pertaining to an accounting unit on Intra Railway transaction is directly raised on E-Recon by respective units and in case of Inter Railway transactions the same is raised by unit through its HQ which subsequently raise it to the HQ of concern zonal HQ. Preparation of JV’s and generation of reports like Inward/Outward transactions can be generated on E-Recon. The programme for raising, accepting such debits/credits is given every month on E-Recon. Disposal of Railway Board/Audit and Accounts Report.

11)

Audit References: The queries received from Audit are replied, if necessary, by obtaining remarks from concerned executives or replies are framed from the records of the section. Each reference of audit is to be dealt with according to its significance.

•

•

•

80

Important tips for AFRES USERS:-

Each and every user in the section including S.O. is allotted separate ID name and password. Supervisor of the section will ensure that periodical changes of password takes place for each and every user of X-II section. The entry of such effect is to be kept in the manuscript register opened for the purpose. The period for changing in password will be at the interval of at least a fortnight.

After customization of AFRES programme, SO (In charge of the section) will run Audit Trail of their section. This is to be run at the interval of 15 days and he will obtain signature of concerned officer. SO will be given feasibility with their user ID and password for accessing and running Audit trail. It is also to be ensured by supervisor of the section that the ID and password is not to be shared by more than one staff of the section.

Contractors Bills

•

If there is any modification in any rules/programme due to Railway Bd’s policy/circular /orders or due to any reasons the modification in the AFRES programme is done & the proper testing of such changes is to be carried out and results of such effect should be recorded before final implementation of application. The detail procedure is annexed as AFRES USER MANUAL separately.

81

Chapter 4

BUDGET

1.0)

1.1)

The main functions of budget section includes (A) framing of budget estimate, august review, revised estimate budget estimate, modification to final estimate (B) ensure that the actual expenditure within the budget grant (C) rectification of wrong booking (D) funds certification. Presentation of Budget

The estimated receipts and expenditure received from different zonal Railway and other units are consolidated and finalized at Railway Board level and presented before both houses of Parliament by Union Minister of Railways. Estimate of Receipts:

They are divided into two parts; Revenue receipts and Capital Receipts. The budget for receipts is compiled and consolidated by traffic Accounts branch. Railway earnings are divided into following heads:

1.

Passenger Earnings

4.

Sundry Earnings

2.

3.

1.2) 82

Goods Earnings

Other Coaching Goods

Receipts are compiled based on the monthly balance sheets of station Masters and goods supervisors. In the sundry earnings part of the earnings are accounted for and reflected through Monthly Account Current and submitted to traffic accounts branch by Accounting Units. These earnings relate to sale of grass, licence fee, way leave charges etc. BUDGETING EXERCISE

The steps involved in presentation of Railway Budget are as followed:

Budget

(i)

Preparation of budget

(iv)

Review of budget as executed.

1.3)

(ii)

(iii)

Voting of budget

Execution of budget.

Voting and review of budget are parliamentary functions whereas preparation and executions are primarily the functions of executives at divisional and higher levels. THE PREPARATION OF BUDGET:

The Revised Estimates of the current year and Budget Estimates for the ensuing year are prepared simultaneously and the preparation takes place at grass root level i.e. at divisional level. The entire responsibility for framing the estimates depends upon the spending/earning units. Though the actual work of compilation and scrutiny rests with the FA&CAO. After proper scrutiny the budget estimates are submitted to the Railway Board by the Zonal Railways. The estimates so submitted are subject to the critical examination by the Railway Board and after taking all relevant factors into account the Board frames estimates of income and expenditure for the Railways as a whole. The revised estimate for current year is fixed under each demand for each Railway after taking into account the actual of previous year, the expenditure during first seven months of current year and any special feature that may be known.

So far as expenditure on Capital Work is concerned the Railway Administration compiles a list of works in progress and new works to be taken up in the following year. The Board discusses proposals for New Works and a list of approved work is prepared. The proposed expenditure in the following year on such New Works and on Works in Progress forms the work Programme or the budget estimate of the Rly for expenditure to be incurred on new or ongoing works. Separate provisions are made for different types of Capital works, which is in the form of funds like Capital Fund, DRF, 83


1.4)

DF, OLWR, Capital fund. The level of funds may slightly vary from budget to budget. VOTING OF THE BUDGET:

1.5)

Before presentation of budget in the parliament the recommendation of the President is obtained under Article 113(3) of the constitution. The budget papers are circulated to the MPs and the budget is debated in the parliament.

Speech of Minister of Railways introducing the budget

3.

BUDGET DOCUMENTS PRESENTED TO THE PARLIAMENT 1.

Key to budget documents

4.

Memorandum explaining proposals for adjustment of fare and freight rates.

2.

5.

6.

7.

8.

Budget for the Railways revenue and expenditure

Explanatory memorandum on the Railway Budget. Demands for grants (Part-I & Part-II)

Works machinery and rolling stock Programme (Part-I & Part-II) Indian Railways year book

Indian Railways annual reports and accounts.

In accordance with the Article 114 of the constitution, after the demands for grants have been voted by the Lok-Sabha, a bill is introduced to provide for the appropriation out of the consolidated fund of India of all money required to meet the grants made by the Lok-Sabha as also expenditure if any, charged on the consolidated fund of India. The grant as voted by the Parliament and appropriation for charged expenditure as sanctioned by the President are distributed by the Railway Board among the Zonal Railways and other spending authorities. The order by which allotments are made is called budget orders. The capital budget is presented in the form of Rolling Stock and Final works Programme.

84

Budget

1.6)

THE STAGES TO REVIEW OF BUDGET

(i)

(iii)

(ii)

August review – Mid term review – Sent to Board in August Revised estimates – Sent to Board in December First modification – Sent to Board on 1st of Feb

0.7)

(iv)

I.

Budgetary Reviews:

As a means of controlling the expenditure, a monthly review comparing actual expenditure with the proportionate budget allotment is made and an appreciation report bringing out the special features in respect of each month’s account is also submitted to the Railway Board. This monthly review is done right up to the Divisional level and it helps in controlling the expenditure effectively. This also helps in managing the finances in a better manner by the respective departments by postponement, modifications in the physical activities being contemplated or appropriation of funds.

II.

Final modification sent to Board on 1st of March

CONTROL MECHANISM

EXCHEQUER CONTROL

Exchequer control is a mechanism for concurrent regulation of cash outgo vis-à-vis allotments. The books of Railway expenditure falls into 2 categories viz cash and adjustments. The former covers all transactions completed through cash payments or issue of Cheque and broadly comprises disbursements to staff and contractors, settlement of bills/ claims for supplies and services etc. Adjustments represent inter or intra accounting unit booking transactions, which entail no cash outgo.

The object of exchequer control is to establish a system for correct estimation of cash outgo and to monitor way and means allotted. 85


APPROXIMATE ACCOUNTS CURRENT:

This is an exercise to ascertain the cash out go for the purpose of arranging Ways and Means. At this stage cash outgo as well as adjustments for the coming month are ascertained and submitted to Railway Board through Zonal HQ.

(A)

It is thus an important tool of budgetary control. In the exercise of exchequer control, the total allotments for the year are divided between cash and adjustments. Board has laid down broad guidelines for making a realistic estimate of cash and adjustment portion of expenditure falling within the sanctioned budget. Thereafter, the cash outgo is further distributed amongst the 4 quarters of the year. Railway Board issues quarterly cash allotments. The actual cash disbursement during the quarter is reported while asking for the cash allotment for the next quarter. The report is scrutinized in the Board’s office to see the progress of cash expenditure vis-à-vis the authorization for the quarter. Revenue Expenditures:

This is expenditure on day-to-day maintenance of the system. Any expenditure that does not improve or appropriate the value of the assets and the impact of expenditure does not last beyond one-year falls in this category. Budget for Revenue Expenditure is prepared and booked under Demands for Grants, which are further, subdivided into subhead, minor and detailed heads. The classification is based on function of expenditure and objective of expenditure.

Demand NO

Name of Demand

1

Railway Board

3

General Supdt. & Services on Railways

2 4 5

86

Miscellaneous Expenditure (General)

Repairs & Maintenance of Way & Works Repairs & Maintenance of Motive Power

Name of abstract

A B C

Budget 6

7

Repairs & Maintenance of Carriages & Wagons

Repairs & Maintenance of Plant & Equipment

D

9

Operating Expenses-Traffic

G

8

Operating Expenses-Rolling Stock & Equipment

10

Operating Expenses- Fuel

11

Staff Welfare & Amenities.

14

Appropriation to Funds

12

Misc. Working Expenses

13

PF, Pension & other Retirement Benefits.

15

Dividend to General Revenue repayment of loan taken from general revenues and amortization of over capitalization.

16

E F

H I J

K, N L

M

Asset acquisition – construction and replacement

1.12) Primary Units (Objects) of Expenditure

1.

Salaries and Wages

4.

House Rent Allowance

2. 3.

5.

6.

7. 8.

09. 10.

11.

12. 13. 14.

Dearness pay and Dearness Allowances Productivity Linked Bonus

Compensatory (City) Allowance. Transport allowance

Air Travel Expense sanctioned in lieu of privilege passes. Office Expenses.

Wages of Casual labour.

Kilometer allowance. Overtime allowance.

Night duty allowance Other allowances.

Fees and honoraria.

87


15.

Transfer allowance.

18.

Advertising Expenses.

16.

17.

19.

20.

21.

22.

23.

24.

25.

26.

27.

29.

28.

30.

31.

88

32. 33.

34.

Traveling expenses.

Rental for P & T Telephone and call charges including Trunk Calls. Utilities-Water, Electricity, etc.

Rental for office equipment (other than Data Processing) Printing and Stationery including Publications. Cost of materials from stock.

Cost of materials - Direct purchase. Fuel for other than traction.

Contractual payments - (This primary unit may be used for works and handling contracts and contracts for Engineering supplies of materials etc. while all other direct purchase of other stores will be booked under Primary unit 28)

Transfer of debits/credits from other units- (This primary unit may be used for classifying Transfer debits/credits other than for Stores debits/credits received from Stores Accounts in which case Primary Unit 27 may be used) Adjustment of ‘Wages’ on POH and other repairs from WMS Account to Revenue Heads.

Adjustment of ‘materials’ on POH and other repairs from WMS to Revenue Heads. Excise duty paid/payable for purchase of materials.

Customs duty paid/payable for purchase of materials. Sales Tax paid/payable for purchase of materials. Air Travel (Domestic) Air Travel (Foreign)

Cost of computer hardware/system, Software/

Budget

application software including expenditure on excise /customs and sales tax; IT related consultancy contracts, cost of up gradation i.e. one-time expenditure not being of recurring nature.

35.

Cost of computer consumables (ribbons, cartridges etc.), discs, tapes, floppies, computer stationary etc., rental of computers and AMC i.e. all expenditure of recurring nature.

36.

Other Expenses.

39.

Air Travel (Domestic)

37.

38.

Customs duty paid/payable for purchase of materials. Sales Tax paid/payable for purchase of materials.

40.

Air Travel (Foreign)

51.

Cost of computer consumables (ribbons, cartridges etc.), discs, tapes, floppies, computer stationary etc., rental of computers and AMC i.e. all expenditure of recurring nature.

99.

Other Expenses.

The revised and budget estimates for expenditure on construction, acquisition, and replacement of new assets (briefly known as the Works Budget), are prepared in the form of the Works, Machinery and Rolling Stock Programme. Detailed instructions for the preparation and submission of the Rolling Stock Programme and the Machinery and Plant Programme are contained in the Indian Railway Code for the Mechanical Department (Workshops) The Works Programme is required to be prepared in accordance with

50.

Cost of computer hardware/system, Software/application software including expenditure on excise /customs and sales tax; IT related consultancy contracts, cost of upgradation i.e. one-time expenditure not being of recurring nature.

1.13) CAPITAL EXPENDITURE

1.13. A)

Works Machinery and Rolling Stock Budget –

89


the instructions embodied in the Indian Railway Code for the Engineering Department. There is one single Demand for Grant for Works Budget viz. Demand No, 16 for capital budget i.e. Construction and Replacement. Whether the expenditure is met out of loan obtained from the general exchequer or internal resources of Railways viz., ‘Revenue’, the, ‘Depreciation Fund’, the ‘Development Fund’ and ‘Accident Compensation, Safety and Passenger Amenities Fund’; Works Demand provides for booking of expenditure by various Plan heads . For the purpose of link with the accounts of Central Government, the Plan heads form a Minor Heads of Railway Works Expenditure, under the Major Heads 546 and 547. Minor heads of classification also refer to Plan head code. The list of Plan Heads is as follows:-

Code number Description of Plan Head

11.

Purchase of new Lines.

15.

Doubling.

14.

16.

Restoration of dismantled lines.

Gauge conversion.

Traffic facilities-Yard remodeling and others

21. Rolling Stock.

29.

30.

34.

Taking over of line wires from P & T Department.

35.

36.

41.

90

Road safety (ROB/RUB)

Track renewals.

33.

Road safety (L/Xing)

31.

32.

12.

13.

New Lines (construction)

42.

Bridge work.

Signaling and Tele-communication works. Electrification projects. Other Electrical works. Machinery and Plant.

Workshops including production Units.

Budget

51.

Staff Quarters.

52. Amenities for staff. 53

(i)

(ii)

61.

62

Passenger amenities.

Other Railway Users amenities.

Investment in Government Commercial undertakingsRoad services.

64

Investment in Government Commercial undertakingsPublic undertakings. Other specified works.

71

Stores suspense.

81

Metropolitan Transport Projects

72

73

Manufacturing suspense. Miscellaneous Advances.

The source of financing is indicated by the following alphabets while booking of works expenditure under the Revised Classification:

P-

Capital OLWR

Expenditure under (OLWR) is financed from railway revenues, i.e., it is treated as a part of the miscellaneous revenue expenditure of capital nature. Expenditure budgeted under ‘’Capital” involves increase in the Capital-at-charge of the Railways .Since dividend is to be paid to General Exchequer of Govt for the capital portion of the Capital Structure , therefore, dividend is paid for increament in this portion subject to the relief’s/ exemptions granted by the Convention Committee. ‘Works Expenditure’ of the Railways is thus financed from Revenue, Railway Funds (DRF, DF and ACSPF) a Capital provided by the General Revenues. In the event of the Railway’s revenue surplus not being adequate to fully meet the requirements of Development Fund expenditure, the budgetary support from the General Revenues would also

T- ACF

Q- DRF

S-

DF

R-

91


include temporary loans to finance expenditure from the Development Fund.

Primary Units (objects) of expenditure for Works (1) Pay and allowances Establishment

of

Departmental

01

(3) Payment to Contractors and others for Engineering works or supply and erection contracts etc.

03

(2)

Payment to Casual labour

(4)

Direct supply of material

04

Credits for released material

07

(5) (6)

(7)

Stores supplied from stock Freight on stores

(8) Others (9) (10)

Transfer of debits/credits affecting capital works expenditure/suspense accounts Productivity Linked Bonus

(11) Excise duty paid/payable for purchase of materials (12)

Custom Duty

(15)

Travelling Expenses.

(13) (14)

(16)

(17)

(50)

92

Sales Tax

Interim Relief.

Air Travel (Domestic) Air travel (Foreign

Cost of computer hardware/system, Software/ application software including expenditure on excise /customs and sales tax; IT related consultancy contracts, cost of upgradation i.e. one-time expenditure not being of recurring nature.

02

05

06

08

09

10

11

12

13

14

15

16

17

50

Budget

(51) Cost of computer consumables (ribbons, cartridges etc.), discs, tapes, floppies, computer stationary etc., rental of computers and AMC i.e. all expenditure of recurring nature.

51

After receiving allotment from Rly board HQ distribute to unit. The distribution of division-wise, demand-wise, subhead-wise budgetary allotment received from FA& CAO is to be informed to OS Budget. -365 F1 1.15) Proportionate Budget allotment

The sanctioned allotment for the year is distributed over twelve months. This is called Proportionate allotment or Budget Proportionate. While framing this, the following factors are taken into consideration. (i)

Throw forward liability from the previous year

(iii)

Expenditure practically fixed and evenly distributed throughout the year.

(ii)

Expenditure which is not likely to be incurred evenly during the year

(iv) Keeping some reserve for meeting fresh or unanticipated expenditure (v)

Trend of expenditure booked during previous years.

The demand-wise, department-wise, subhead-wise, PU-wise proportionate budget allotment is fed into the computer for monitoring the expenditure. This MIS to put up to SR DFM and DRM every month .

3.0)

Monthly Financial Review

Being a Budget Control Officer Budgetary and expenditure control is exercised by SR DFM by reviewing the financial position every month. Here, department-wise, demandwise, PU- wise expenditure to end of the previous month is compared with Budget grant and Budget proportion and major 93


4.0)

variations between BP and expenditure are analyzed and put up to DRM. Budget supervisor is also being intimated so that necessary action can be taken. A comparative statement of controllable heads of account like OT, TA and NDA is prepared by comparing actual of current year, actual of previous year and budget proportion. As regards works expenditure, planhead wise expenditure is compared with budget grant.

4.1)

Review of Expenditure –

This is mid-term exercise to review the trend of expenditure as compared to budget grant. Railway Administrations should review their expenditure in August to see whether any modifications are necessary in the allotments placed at their disposal. The review in respect of each grant is submitted, to the Railway Board in form No F-383 so as to reach them not later than 1st September each year. –383 F1

This is prepared by executives comparing actual expenditure of previous first four months and full year and first three months (April to June) plus approximate of 4th month (July) and anticipated booking in the remaining months with BG. This is submitted to Accounts for vetting. Vetting is done by verifying the correctness of figures and comparing the anticipated expenditure with previous year’s expenditure and trend of expenditure in the current financial year. If any variations are there, it is seen that justified reasons are given therein. The following checks are carried out in August Review:

(i)

August Review Estimated (ARE)

(ii)

94

(iii)

The reason for variation in the Primary Units & minor heads is clear & cogent along with details leading to such variations.

ARE for demand no 16 is submitted in the prescribed format.

The forecast of works of expenditure on works should be made with due regards to progress of expenditure

Budget

& commitments that are likely to materialize. Wherever the provision appear to be excess of the actual requirement, should be surrendered at the ARE stage itself.

(iv)

ARE for earning will be finalized under liaison with CCM/HQ, he may coordinate in this regard and the estimate of traffic plans for passengers & goods may be generated in CRIS software. The estimate of actual originating & apportioned earnings for the proceeding year vis-à-vis monthly details of current year may be furnished. The reviews of civil grant visà-vis the budget allocation need to be carried out & estimated requirements under “F” Loans & Advances’ only may be furnished.

(v)

(vi)

(vi)

(vii) To keep uniformity among the data of all Indian railways, credits should be booked /projected only under the primary unit “other expenses”. This instruction should be strictly adhered to in all budgetary stages.

The August Review, Revised and Budget Estimates etc. in respect of earnings, the Railway through the windows based program namely ‘Budget Compilation System’ developed by CRIS furnishes Revenue and works expenditure.

The August Review Estimates of Grant No 1 and 2 may be prepared indicating details of approximate expenditure to end the concerned month incurred under each primary unit. We should make every effort to formulate their estimates for demands in such a manner that various other post-budgetary increases such as hike in the price of HSD oil and unforeseen expenditure on account of natural calamities etc. are met within the existing allotments.

95


4.2)

Target date for submission of August Review:-

The target date for submission of August Review, is fixed as 1st week of August every year. However it is to be ensured that the August Review should be submitted as per the date fixed by headquarter.

5.0)

Revised Estimate –Budget Estimate (RE-BE)

This is 2nd stage of review done after the closure of Sep A/C. In this stage Revised Estimates for coming the year and Budget Estimates for next year are fixed for each demand. The estimates of expenditure in respect of each demand should be prepared in duplicate, the, figures being given in thousands of rupees. In preparing these estimates, it should be ensured that the figures of actual expenditure for the preceding year shown in the estimate agree with those reported to the Railway Board. The figures of actual expenditure for the current year should represent the latest data.

5.1)

Explanation of Variations –

A brief narrative explanation should be given of the causes (with amounts involved in each case) of substantial differences between the figures adopted for the revised estimate of the current year and (I) the actual of the previous year, and (ii) budget allotment for the current year. Similar explanation should also be given for differences between the figures of the budget estimate of the ensuing year and the revised estimate of the current year. Large variations, which compensate each other, should also be indicated.

96

The revised estimate for the current year and the budgetestimate for the next year should be fixed after taking into account the expenditure of the previous year and comparing the expenditure during the first seven months of the year with the corresponding period of the previous year. A full explanation of special features and any exceptional and abnormal adjustments (with amounts involved) included in each period of the previous and current year as also in the next

Budget

year, should be given in the explanatory note accompanying the estimates. The financial effect of variations on account of specific reasons should be clearly brought out under each Demand. When the expenditure anticipated in the last five months of the year is disproportionate as compared with (I) the first seven months of the year or (ii) the corresponding period of the previous year, reasons for the disproportionate expenditure should be given in the revised estimate. Special and non-recurring items of expenditure in a year should show a corresponding saving in the following year. Likewise, when transfers are made from one demand to another due to changes in classification, the saving shown under one demand should agree with the excess shown under the other demand. The estimates of the cost of establishment should be based on past experience of their actual cost, with due allowance for any changes either in the number or rates of pay of each individual establishment in the year in which, or for which the estimate is being made. In the explanatory note accompanying the estimate, information should be given as to what part of the proposed expenditure represents expenditure on the permanent staff already sanctioned, how much of the proposed increase in the next year is due to ordinary increments, how much is new expenditure and how much for temporary establishment. Reasons should be given for additional staff when provision is made in the estimates for such increase in expenditure. ‘Staff Statements’ under each Demand should accompany the estimates of ordinary working expenses. Explanations for substantial variations in the numbers should be furnished as between current year’s budget and, revised estimates and budget estimates for the following year. This is prepared by executives comparing the actual of first six months (April to September) plus approximate of 7th month (October) and anticipated booking in the remaining months with BG and corresponding expenditure of previous year. Special features, if any noticed, should also be considered at this stage. Vetting is done as mentioned above.

- 324 to 331 F1 97


5.2)

SCRUTINY OF REVISED ESTIMATE & BUDGET ESTIMATE

At the time of checking of Revised & budget estimate we check the followings-

(ii)

(iii)

5.3)

Target date fixed for submission of RE BE:-

The target date for submission of RE, BE, is fixed as 1st week of November every year. However it is to be ensured that the RE BE should be submitted as per the date fixed by headquarter.

(i)

(iv)

6.0)

A detailed analysis on the current trend of the expenditure and forth coming future expenditure may be carried out before projecting RE so as to avoid excess/ saving. Credits & recoveries should be estimated with utmost care. Detail reasons for variation in respect of each minor head, taking all primary units together and by primary units, for the demand as a whole may be furnished.

It may be ensured that REs are accompanied with required annexure.

Debit/ Credit projections under various suspense heads of Demand no. 12/K may also be furnished with due care.

Final Modification

Final Modification Statement submitted to HQ should be furnished, for each grant separately, and it should reach them not later than 21st February finally to Railway Board, with statements showing additional allotments required (both voted and charged) or surrenders to be made, during the current financial year under each head of appropriation, as prescribed in the budget orders, and requiring the sanction of the President. The variations between the final modified allotments required and the revised estimates as fixed by the Board should in all cases be supported by adequate explanations of the reasons for the demand or surrender. 98

-385 F1

Budget

6.1)

7.0)

This is done after the closure of December accounts when the actual expenditure of 9 months and approximate for 10th month are available. Through this additional funds are asked / surrendered as per the requirement. Vetting is done as mentioned above. Target date fixed for submission of Final Modification:-

The target date for submission of Final Modification is fixed as 1st week of January every year. However it is to be ensured that the August Review should be submitted as per the date fixed by headquarter. Appropriation Accounts

Apart from its significance as an instrument of Parliamentary financial control, the Railway Budget is an important management tool. Broadly the financial forecast in the Budget is related to the performance targets set for Railway Administrations, and it is the responsibility of the Railway Managements to ensure the achievement of these associated targets. -304 F1

Parliamentary Financial Control is secured not only by the fact that all ‘voted’ expenditure must receive Parliament’s prior approval, but also by the system of reporting back to it, through the Public Accounts Committee, the actual expenditure incurred against the Grants voted by Parliament and Appropriations sanctioned by the President. -401 F1

The statements, which are prepared by Railways and presented to C & AG’s Audit Wing for presentation to the Public Accounts Committee, comparing the amount of actual expenditure with the amount of Grants voted by Parliament and, Appropriations sanctioned by the President, are called the “Appropriation Accounts”. The aim is to ensure that the expenditure is done for the purpose it was actually sanctioned by the Parliament. -402 F1 99


8.0)

The Compilation procedure of Appropriate Accounts:

The Appropriation Account for Revenue Demand 3 to 13 is prepared Department wise, Demand wise, Subhead wise, PU wise by Executive department and sent to accounts office. The compilation is done demand wise, subhead wise and suitable explanation for variations are furnished in consultation with Executive department. The compiled statement is sent to F.A. &. C.A.O’s office. For more detail please see chapter IV of Finance code vol. 1.

100

Chapter 5

INSPECTION SECTION 1.

NECESSITY FOR INSPECTIONS:

i)

Though in certain cases original records are submitted, a large number of accounts and supporting documents submitted for internal check are not original records, as such the internal check conducted in the Accounts Office is largely dependent for its efficiency on the degree of care exercised by departmental authorities over the accuracy of the original records.

ii)

iii)

iv)

2.

It is, therefore, necessary to review the original records as submitted to Accounts and also to test the degree of care exercised by the executive officers over the accuracy of such records and to see that they are maintained properly in the prescribed forms. Opportunity is also taken at this time to test check such Accounts, Vouchers, etc. which are not coming under the purview of internal check or cannot be checked adequately except at a local inspection. Inspection of executive offices at Head Quarters and Divisions shall ensure the accuracy and authenticity of the transactions rendered by the executives. RESPONSIBILITIES OF ACCOUNT’S OFFICERS: Divisional Accounts Offices are responsible for:-

The

i) Inspection of all offices under their Accounts control. ii) Inspection of jurisdiction.

iii)

Railway

Schools

within

their

Inspection of all catering units falling within their jurisdiction.

iv) Check of Book Stall, Platform Stalls at stations.

v) Check of OT/NDA claims at Stations and other offices. Accounts team is mandated to ask for any record from 101


any office under their accounting control. They have also the mandate to seize the record with prescribed procedure it embezzlement or a serious lapse is suspected in the accounts.

3.

PERIODICITY OF INSPECTION

i)

Schedule of Inspection: It is prepared on the basis of sensitivity analysis. The sensitive areas are more frequently inspected as compared to the less sensitive ones. Sensitivity of an office is decided based on the level of financial transactions taken up. The money value item dealt with the possibility of pilferage and leakages and so on also decide the frequency of inspection. Special emphasis should be given to post check items like Imprest. Divisional offices are inspected once in every two years, but the initial accounts of Engineering expenditure, Open line shall be inspected once a year. The first inspection of a construction division shall as far as possible be made within three months of its formation. The Headquarters Administrative Offices will be inspected once in two years. - [ 1706 A1]

ii)

iii) iv)

While inspecting Divisional office, one suboffice in the case of engineering expenditure and at least two subordinate offices not in charge of a Gazetted officer shall also be inspected simultaneously. As far as possible all the subdivisional offices in a division shall be inspected within the course of two years.

The offices, where there are not many transactions by way of miscellaneous cash, issue of passes, PTOs etc. may be inspected once in 3 years to have.

a) A general review of the procedure relating to initial accounts of receipts and expenditure of cash and stores with a view to making helpful suggestions towards elimination of useless returns, redundancy of any kind and wasteful methods. 102

Inspection Section

b) To assist the departmental officers in the matters affecting accounts, budget or the financial regularity of transactions.

4.

1. 2. 3.

4. 5.

6.

7.

The inspecting staff shall initial with date on all registers, documents etc. (Except service cards) examined by them as a token of their check.

DRAWING UP OF ANNUAL INSPECTION PROGRAMME FOR ENSURING YEAR: The Annual Inspection Programme has to be drawn up in terms of Para 1712 A1 for obtaining FA&CAO’s approval before the starting of the financial year. This Annual Inspection Programme has to be drawn up in consultation with associated Audit office with regard to provisions of Para 1706 and 1709 A1. The following details should be mentioned on the programme. Name of Executive offices/Sub-Ordinate offices. Periodicity of Inspection.

Date when the unit was last inspected by Audit/Accounts office, When inspections is proposed to be done during the financial year.

No. of Days and man days programmed for each inspection with the total No. of days and man days required during the entire year for inspection purpose.

All units due for inspections may be segregated between the categories as “ Major unit/Minor unit.” And a separate inspection scheduled for each category may be submitted. Detailed analysis may be done to furnish the following information:-

(i) Joining time required for the inspection during the financial year.

(ii) The remaining No. of days available for inspection. (iii) No. of holidays/Sundays and CL/RH etc.

103


8.

The copy of holiday’s list for the year of Bhopal division is also to be furnished with the programme.

Current position of compliance of approved annual inspection programme for the current year is also to be furnished in terms of nos. of inspection due/ carried out and inspection reports (Part I & II) issued. In case of arrears in this connection, reasons for the same and steps taken to clear the arrears is also to be furnished.

Ref:-

A certificate starting that all the units, the inspection of which is due during the ensuring year are included in the programme without any omissions is also to be furnished. FA&CAO/I.Au/JBP letter no. HQ/ACS/GA/INSP/001/200910 Dated 04-03-2009

NOTE:- The complete list of various offices on Bhopal division is annexed as Annexure ‘A’.

5.

Based on above guidelines and keeping in view the inspection Schedule of Audit department inspection programme of Accounts office has been finalized and shown as Annexure –‘B’. FURTHER DISPOSAL OF INSPECTION REPORTS.

Based on the findings observed during inspections, Reports are prepared and submitted to ADFM for approval. After getting the approval of ADFM, the inspection reports are issued to the officer unit in-charge of unit inspected. On receipt, of the replies the remarks are verified for their genuineness and appropriateness and the matter is closed if found acceptable. However, in case the remarks are found inappropriate and unsatisfactory, the concerned unit incharge is written back for corrective actions. On receipt of further reply, the report is closed with the approval of Accounts Officer. The Inspection report is issued within 20 working days time from the date of inspection.

104

During the course of inspection, efforts are made to review old outstanding Inspection reports of Accounts or Audit department, if any, and the concerned Executive is impressed

Inspection Section

6.

upon for submission of remarks /corrective action at the earliest.

On receipt, the remarks are verified & forwarded to Audit if found suitable, otherwise written back to the concerned branch officer for submission of details of corrective actions and subsequent appropriate remarks. In addition, reminders at regular intervals are issued to concerned branch officers for submission of remarks in the matter of outstanding current and old audit references. Tripartite meetings are arranged to finalize Audit reports/Special letters. At the same time, various periodical returns are submitted to the HQ with the vetting being done by Audit department, if necessary. To verify all settlement cases to record recoveries outstanding and detected during Inspection. Check Lists for Inspection:

Inspection of various Executive officers is an important aspect of work for Accounts Department; Emphasis is laid to make it purposeful and effective to assist various Executive authorities by pointing out important areas of deficiencies, where improvement can be achieved. Keeping these objectives in mind, a Checklist to carry out the inspection in a way prescribed in the Railway manuals is prepared. The checklist should cover all the important areas where the probabilities of omission and commission are higher. This normally covers the aspects, given below. However, the list given is not exhaustive, and an item can be included based on its importance in the relative context. •

•

•

•

The Receipt and issue are matching and confirms to the real state of affairs. The liabilities and Assets are matching.

The Book Balance and Journal Balance correspond to each other.

The allowance claims and privileges are entertained within the prescribed limit. 105


•

These checks are given below illustrative and not exhaustive.

7.

The work is executed as per authorization.

LIST OF ITEMS COMMON TO ALL OFFICES NONPERSONNEL

1) Imprest cash including Spl. Imprest Account. 2) Postal stamps account.

3) Franking Machine Account.

4) Misc. cash receipts and remittances. 5) Pay orders.

6) Money value books and machine numbered books.

7) Register of Agreements, and review of Tenders and contracts. 8) Review of Agreements.

9) Stationery books and forms.

10) Consumable Stores Account. 11) Clothing Account.

12) Dead Stock and Tools and Plants.

13) R.M.C/Credit Notes issued for carriage of Rly. Materials. 14) History Book of vehicles, typewriters etc.

15) Review of Inspection Notes of PHODs/ HODs.

16) Review of Outstanding Audit and Accounts Inspection Reports. 17) Review of Bills Register.

18) Review of Telephone bills. 19) Review of Log Book.

20) Review of Monthly Progress report/PCDO to Rly. Bd. etc. 21) Review of Stores ledger.

22) Review of Progress of expenditure. 23) Writeoff and sanctions. 106

Inspection Section

24) Register of Library Books, Receipts, Accountal and issues. 25) Review of Implementation of Rly. Bd’s orders.

POINTS REQUIRED TO BE SEEN ON EACH OF THE ABOVE QUOTED ITEMS ARE GIVEN BELOW: 1)

IMPREST CASH:

i) The cash balance on hand to be verified by actual count and tallied with the book balance, Certificate to this effect should be recorded in the Imprest register under the initial of the inspecting official.

ii) Proper arrangements exist for the safe custody of the cash. iii) Prescribed Imprest register is maintained in the prescribed form, and the amounts spent are recorded correctly. (G.SIF/E.1411) iv) Recoupment is made periodically.

v) The Imprest Account is balanced and closed daily.

vi) Amount spent from Imprest are correctly payable and authorised by the Gazetted Officer.

vii) The sanctioned amount is not in excess of requirement, and a justification exists. In case Recoupment is made occasionally, reduction of Imprest is to be suggested. viii) Special Imprest sanctioned for a specific purposes are closed immediately duly surrendering the balance amount after the special event is over. ix) Amount spent from special Imprest are spent only for the specific purpose for which it was sanctioned.

x) Separate Imprest Account is maintained and not mixed with general Imprest, if the Imprest is sanctioned for special purpose. 107


2)

POSTAL STAMPS ACCOUNT:

i) Service stamps on hand to be verified by actual count and tally the same with the balance as per Register of Stamp Account. ii) It should be seen that ordinary postal stamps are not used and only service stamps are used.

iii) Recoupments of service stamps are properly accounted in the postal stamps account.

iv) Full particulars are given in the postal account register for the usage of service stamps. v) The postal stamp account is balanced daily/ periodically, and initial of the in charge/supervisor is obtained in the Resister of Stamps Account.

vi) If the postal stamps are used for Registered articles etc., necessary acknowledgements obtained from the postal authorities are pasted in the Postal Stamps Register. vii) Test check of the entries in the register is made to ensure that the stamps have been used for office use only. 3)

FRANKING MACHINE ACCOUNT:

i) Proper sealing of Franking Machine is to be checked.

ii) Opening and closing Nos. are entered in the stamps register. iii) Proper account for usage of stamps from the Franking Machine is recorded in the stamps register. iv) When stamps are recouped from Postal Department, necessary entries are made in the register (opening and closing numbers)

v) Rebate @ 3% for the usage of Franking Machine is claimed from the Postal Department periodically, and the amount realised is accounted for in the Railway’s account. 108

Inspection Section

4)

MISCELLANEOUS CASH RECEIPT AND REMITTANCES:

i) The office is authorised to receive the cash, and proper receipt is issued for all receipts of cash.

ii) The receipt books have been kept under lock and key in the personnel custody of the official responsible. iii) The amount received is remitted to the cash office or to the nearest station without any avoidable delay and the amount is remitted correctly.

iv) Proper Acknowledgment is obtained and pasted to the counter foil.

v) Proper account is maintained for the receipt and deposit of cash.

vi) Necessary returns are submitted to the Accounts Office monthly. vii) Correct allocation is furnished on all the vouchers. 5)

PAY ORDERS:

i) The Pay Orders issued by the office are checked to see that the drawl of amount is justified and sanction of the competent authority is obtained.

ii) Pay order book is properly maintained and necessary certificate is recorded to the effect that all the folios are checked and found correct. iii) All the pay orders are stamped with seal of the office. iv) Pay order books are kept under lock and key.

v) Separate register is maintained for issue of pay orders. vi) After the amount is drawn, necessary vouchers are sent to the Accounts Office in time.

vii) Amount drawn through pay order is spent immediately and only for the purpose for which it is drawn. 109


6)

MONEY VALUE BOOKS AND MACHINE NUMBERED BOOKS:

i) Proper Accountal and receipt of the books is to be checked with the memos issued by the Press/Forms Depot. ii) Proper arrangements exist for safe custody of the books.

iii) The numbers of unused books agree with the entries in the stock register. iv) All issues are properly acknowledged.

v) Obsolete or excess to requirements are not stocked.

vi) Prompt action is taken in the event of loss/theft of money value books/or folios, viz. Gazetted notification, report to the Police, etc. to avoid fraudulent usage of the Money Value Books. 6)

REGISTER OF AGREEMENTS:

i) A Register is maintained in the prescribed form.

ii) All agreements entered into with the contractors are entered in the register.

iii) Complete details viz. name of the work, Agt. No., and date, letter of acceptance of the agreement, total value of the Agt./contract, Date of commencement, due dt. for completion, particulars of EMD/SD, extension granted if any, special remarks if any etc., are furnished. iv) The register is periodically reviewed and initialed in the inspection sheet. 7)

TENDERS AND CONTRACT:

i) Tenders have been called for with the sanction of the competent authority.

ii) Accounts concurrence is obtained before calling for Tenders (in the case of Single, Limited and Special. Limited Tenders and all other cases where necessary) iii) Tenders have been called for, only after preparation of 110

Inspection Section

Estimate, sanction of Indents (For supply), drawings and plans etc.,

iv) A register is maintained showing all particulars of tenders received. v) In case of sale of Tender Forms, proper account is maintained for receipt, accountal and remittance of cash. vi) Tenders have been called for well in advance of the date of commencement of work.

vii) All relevant rules and procedures have been followed for calling, opening, and finalisation of tenders.

viii) Terms and conditions stipulated in the Agreement/ Contract are as per extant orders. ix) TCP has been formed as per the provisions of S.O.P. / Rly. Bd. Instructions.

x) There is no deviation from the standard conditions, special conditions, if any, and have the prior approval of the competent authority.

xi) The lowest tenders only have been accepted.

xii) Negotiations if conducted are as per latest instructions on this subject i.e. only with the lowest Tenderer etc., 9)

REVIEW OF AGREEMENTS:

i) Agreements Register should be checked to ensure that all details are furnished, ii) Some of the agreements should be checked with reference to a) Progress of the work,

b) Supply of Steel, Cement is as per the Agmt. / Schedules.

c) Test check the measurements recorded and bills claimed.

d) There is no delay in progress of the work/ supply. 111


e) Proper action has been taken against the Agency in case of delay.

f) Final Bills are prepared without delay on completion of the work and final Measurements are taken. If there is undue delay in preferring final bills, the reasons for the delay should be analysed.

g) All records connected with execution of the work are maintained correctly. h) The claims preferred are only to the extent the works are executed/supplies made.

i) Variations to the execution of work or supply of items are regularised with the sanctions of the competent authority as per rules. j) CR is drawn at the earliest, booking the necessary expenditure towards material & establishment. 10)

STATIONERY BOOKS AND FORMS:

i) Necessary Registers are maintained properly for receipts and issues. ii) There are no abnormal issues.

iii) Issue of “Xerox” paper etc. proper account is maintained separately.

iv) Stationery purchased locally in case of urgent need is done after obtaining proper sanction and as per provisions of SOPWCR. v) Computer Stationery is purchased only after necessary sanction is obtained from the competent authority, and the purchase is made as per the provisions of SOPWCR (Part ‘C’) and extant rules on this subject. 112

Inspection Section

11)

CONSUMABLE STORES ACCOUNT:

i) Register is maintained to record the receipt of consumable stores. ii) ‘Empties’ are checked with Issue Notes. iii) Issues are as per the prescribed scales. iv) A responsible periodically. 12)

official

has

attested

balances

CLOTHING ACCOUNT:

i) Requisitions are prepared in accordance with dress regulations. ii) Proper records are maintained for all receipts and issues and issues are made with clear signature/ acknowledgment. iii) The receipts are checked with Issue Notes.

iv) Winter uniforms are issued as per the eligibility criteria, and as per periodicity. 13)

DEAD STOCK - TOOLS AND PLANT:

i) The Dead Stock Register is maintained in prescribed form showing the purchase reference, P.O. No. etc.,

ii) The receipts, Issues and balances are correctly posted. iii) Receipts should be checked with the firms Invoice, Issue Notes etc.

iv) The Day Book of Receipts should be checked to see that all Tools and Plants received have been accounted for in the Tools and Plant Register. v) Proper arrangements exist for accountal and safe custody of the Dead Stock items kept in stock.

vi) All items available/received are properly and correctly taken in the Dead Stock Account.

vii) Proper nomenclature, price list No, measurements etc. are indicated against each item. 113


viii) Separate Folios are kept distinctly for items like, PCs, VCR, TVs, Cameras, and Audio Visual equipments, Fridge etc. ix) Departmental Stock verification has been done periodically and certificate recorded against each item.

x) Un-serviceable Tools and Plant are condemned under proper authority and sent to stores Depot. Expeditiously.

xi) Suitable reference furnished in the Dead Stock Register for the Articles sent to scrap Depot, Transfer to other units etc. 14)

RAILWAY MATERIAL CONSIGNMENT NOTE (RMC NOTES) AND CREDIT NOTES:

i) RMC Notes are issued only for the transport of Railway Materials and the materials are for a bonafide Rly. Purpose. ii) Credit Notes are issued only when freight charges are required to be borne by the Railway as per the purchase order.

iii) Where credit notes are issued towards wharf age or demurrage charges, it should be seen the circumstances under which the charges incurred and sanction of the competent authority is obtained for issue of credit notes.

iv) If the charges are incurred due to delay in unloading, want of staff, negligence of staff etc., the matter should be reported to the concerned responsible official for action against the staff. 15)

HISTORY BOOKS OF VEHICLES, COMPUTERS/ TYPE WRITERS ETC :

i) Complete History of the Vehicle, viz. firm name, cost of the vehicle/item, date of purchase, models etc. are furnished in the Register. 114

Inspection Section

ii) A detail of spare parts supplied, free guarantee period etc. is indicated. iii) Expenditure incurred for repairs, overhauls and spare parts are posted correctly in the register and the monetary limit prescribed for various factors are not increased.

iv) In the case of new machines, free servicing if any agreed to by the suppliers is availed of. v) Released unserviceable spare parts after repair are accounted and sent to the scrap depot under DS8. 16)

REVIEW OF INSPECTION NOTES OF GM/PHOD/RLY. BD. OFFICIALS:

i) Necessary register is maintained to watch the finalisation of the observations made in the Inspection Notes. ii) Observation/Objections pointed out have been properly attended to. iii) All the Inspection Notes have been pursued properly. 17)

REVIEW OF OUTSTANDING AUDIT AND ACCOUNTS INSPECTION REPORTS:

i) Outstanding Audit and Accounts inspection Reports are properly attended to and the mistakes/ irregularities have been rectified.

ii) In the case of Pt. II Accounts Reports, the finality of the action rests with the Executive Units where the inspection was carried out. Action taken on the Part. II reports should be reviewed during inspection.

iii) In the case of Stock Verification reports and TIAs reports, it is to be seen and reported that any DAR case is pending against any employee or against the unit due to Stock Verification Reports or TIAs reports. iv) It is to be enquired and reported that, is there any 115


18)

vigilance enquiries dealing with financial matters are pending.

REVIEW OF BILLS REGISTER:

i) A register to record the bills received in the office is maintained and postings made correctly. ii) Postings are made as and when they are received.

iii) Bills have been passed expeditiously and the outstanding on hand is not heavy. iv) Paid bills for the month selected should be traced in the bills register, and checked.

v) The register is put up to the controlling officer periodically for review. 19)

REVIEW OF TELEHPONE BILLS:

i) A separate Register is maintained to indicate the receipt of Telephone bills with separate folios for office and residential phones. ii) All the Bills passed are properly entered, there is no unusual/abnormal charges passed for payment. In such case, the reasons for such payment should be reviewed.

iii) In the case of residential DOT phones, the excess amount than permissible has been recovered. iv) Charges for Private Calls (Trunk Calls) etc. have been recovered from the officer concerned. 20)

REVIEW OF LOG BOOK:

i) A general review of the Log Book pertaining to all department vehicles with reference to the movement of the 4 wheelers and 2 wheelers (RPF) and entries made therein.

ii) Whether, the journeys performed are systematically and correctly recorded with time, date, and kms. 116

Inspection Section

Travelled, and signature of the officer travelled.

iii) In case of private trip, it has to be checked whether necessary charges have been billed and collected.

iv) Consumption of petrol to commensurate with the kms. Recorded in the Log Book. v) Petrol and other consumable oil drawn are recorded in the LOG Book systematically. 21)

REVIEW OF MONTHLY PROGRESS REPORT MPR/PCDO:

i) It has to be seen whether, the activities/ progress indicated in the report are correct.

ii) Arrears if any reflected in the report are factually correct.

iii) Reasons for not achieving the target are factual and correct.

iv) In case of MPR on execution of works, test check of some of the items, indicated in the report should be reviewed with the connected records. 22)

REVIEW OF STORES LEDGER:

i) Separate ledgers are maintained for Cl. I, Cl. II consumable stores, empties etc.,

ii) Postings are up to date and test checked with connected records like DMTR etc. to ensure the correctness of the postings. iii) Proper records are maintained for receipt and issues. iv) Balances are arrived correctly.

v) Stocks are not held unnecessarily.

vi) In case of overstock items, proper action is taken for disposal. 23)

REVIEW OF PROGRESS OF EXPENDITURE:

i) Proper records are maintained for the incurrence of expenditure. 117


ii) Expenditure incurred is sanctioned and same is as per the provisions made in the Budget.

iii) Debit/Credit relating to the year is booked in the same year’s account. iv) Adequate action is taken to obtain all Dr./Cr. and to account for in the same year. v) All adjustments, AMs, Transfers are accounted without delay.

vi) All expenditure are properly allocated and brought into the Account. 1)

WRITEOFF/SANCTIONS:

i) Proper records are maintained for all sanctions and writeoff.

ii) Writeoff sanctions have been obtained as per the provisions of SOPWCR, Codal provisions etc.

iii) Finance concurrence has been obtained, wherever necessary.

iv) Staff responsibility has been fixed, for the writeoff proposals involving loss for which Rly. Employees are responsible. v) Preventive measures are taken to avoid recurrence of loss/theft etc., for which writeoff proposal is obtained. 25)

LIBRARY BOOKS:

i) A register is maintained for receipt and issues.

ii) Proper accountal of the books is checked with reference to receipt vouchers. iii) Books issued to the officials are returned within the prescribed time. iv) Books purchased for the library are as per the requirement, and guide lines issued by Railway Board. 118

Inspection Section

v) Books, which are not required for day to day functioning, are not purchased.

vi) Books purchased for library are as per the monetary limits prescribed and had the sanction.

vii) In case of books lost/not returned, proper action is taken to recover the cost etc. 1)

REVIEW OF IMPLEMENTATION OF RAILWAY BOARD ORDERS, INSTRUCTIONS ETC:

During inspections, the inspecting officials should test check and see whether the important Railway Board Orders, circulars etc. are properly and correctly implemented, the instructions if any have been correctly understood and there is no deviation.

8. 1)

LIST OF PERSONNNEL ITEMS COMMON TO ALL OFFICES AND POINTS REQUIRED TO BE SEEN ON EACH: ATTENDANCE REGISTER:

i)

Prescribed Register is maintained, with names and designations recorded correctly.

ii) Staff have signed in the attendance Register at the prescribed time and counter signed by the Controlling Officer. iii) Staff attending late has signed only in the late attendance and not in the regular attendance Register. iv) All the absenteeism’s are properly regularised.

v) Late attendance is properly reviewed and suitable action taken for condonation/debiting casual leave.

vi) No staff remains unauthorised absence for long period and if any such cases, proper action is initiated against the employee.

vii) Attendance Register is test checked with leave account, C.L. card etc. to verify the correctness of postings of leave/leave availed. 119


viii) Test checked with salary bills to ensure that wages are drawn only for the duty period, and absence during assumed attendance are regularised properly. 2)

SCALE CHECK:

i) Proper Register/Record is maintained to indicate the sanctioned posts, category wise.

ii) Checked with Attendance, Pay Bills etc. to see that the posts operated are as per the sanction strength

iii) Book of sanction reference is indicated against each Department against the posts sanctioned.

iv) No posts are operated in excess to the sanctioned strength or without sanction v) In case of excess operation, action has been taken to regularise the posts. 3)

LIMITED CURRENCY REGISTER:

i) Proper Register is maintained and complete details viz. category, period of sanction etc. is recorded.

ii) The date/dates from which the posts are being operated to be indicated clearly. iii) No posts are operated beyond the period of currency unless it is extended by the competent authority. 4)

SERVICE REGISTERS:

i) Service Registers have been opened for all the employees without delay and necessary Medical Certificate attached. ii) All required details have been filled correctly.

iii) Necessary Thumb impressions have been obtained and certified by FPE/Responsible official. iv) Service records are kept in safe custody.

v) The Date of Birth recorded in the S.R. agrees with Medical Certificate, School Certificate etc. 120

Inspection Section

vi) All necessary entries viz., increment, transfer, promotion, fixation of pay, option forms for PF, CGIS, sanction reference of HBA, Scooter Advance etc. are recorded correctly and attested by Gazetted Official.

vii) Qualifying service is recorded every year and period not qualified for pensionable service is recorded correctly.

viii) In case of employees, for whom DAR action have been initiated, suitable entries in the S.R. duly indicating the punishment penalty, suspension etc. entered clearly and duly quoting the orders of the competent authority. ix) That the Service Records are periodically reviewed, by the controlling officials. x) In respect of SC, ST and BC candidates’ authenticated documentary proof should be available in the SR/ Personal File of the employees concerned.

5)

CASUAL LEAVE AND SPECIAL CASUAL LEAVE :

i) C.L. cards are maintained properly and C.L./R.H. are sanctioned by the authorized official.

ii) Sanctioned C.L. or R.H. is correctly recorded in the attendance Register.

iii) C.L. /R.H. are availed within the prescribed limit. This should be test checked with Attendance/Muster.

iv) Separate Register is maintained for the purpose of availing special Casual Leave duly indicating individual employee name wise. v) Proper sanction exists for availing special casual leave.

vi) For Grant of Special Casual leave on Sports Account, the prescribed limit, for representing Zonal, National, International events are correctly followed and necessary sanction exist for availing the spl. C.L. 121


6)

COMPENSATORY LEAVE ACCOUNT:

i) A Register is maintained to watch that the compensatory leave is sanctioned for having worked on holiday and the staff has been booked by the office. ii) The compensatory leave is availed within a reasonable period. iii) Supervisory staffs are not sanctioned compensatory rest.

iv) In the case of staff governed by ‘Factories Act’ and the HOER the rest given is in accordance with the provisions of the said statutes. 7)

LEAVE ACCOUNT:

i) Leave account is maintained correctly for all the staff on Rolls, and governed by the leave rules the employee is governed. ii) Advance crediting of LAP/LHAP are made correctly taking into account the Dt. of joining, period of leave without pay etc.

iii) Every leave posting in leave account (Debit) is supported by leave application, and sanctioned by the competent authority.

iv) In the case of commuted leave employee’s specific request is forthcoming and the period of absence is covered by Medical Certificate.

v) Proportionate reduction in the LAP @ rate of 1/10 for the period of LWP (if any) is done before affording advance credit every half year. vi) In the case of ‘LND’, extraordinary leave etc, the leave period is covered as per the extant rules.

vii) In the case of ‘LHAP’ Leave salary is drawn correctly.

viii) LWP period are recorded correctly in the S.R. and no wages are drawn. 122

Inspection Section

ix) No leave is sanctioned/availed without sufficient leave balance.

x) Postings of leave account are test checked with reference to Muster/Attendance register etc. and Leave balance is brought forward correctly on every page of the leave account without any over or under casting of leave.

xi) Leave accounts are properly attested by the responsible official periodically. xii) Paternity leave is availed by the male employee within the prescribed time.

xiii) Maternity leave is availed for the first two living children and necessary entries about availing the leave mentioned in the leave record. 8)

EXTRACT OF MUSTER /ABSENTEE LIST:

i) Extract of muster sent to the personnel department are test checked with attendance register/muster roll and to ensure that the extractions are correctly done.

ii) Leave particulars shown in the Absentee list agree with the Attendance Register. 9)

TRAVELING ALLOWANCE:

ALLOWANCE

AND

CONVEYANCE

i) The T.A. Bills are correctly prepared, signed by the controlling officials.

ii) The movement shown in the Journal agrees with Attendance/Muster Rolls. iii) The amount of T.A. claimed are as per the eligibility criteria based on their Pay and Class of City. iv) The movement shown in the Journal are test checked with Train Time Table to ensure that the claims are correct. v) Conveyance allowance claimed by the employee is 123


10)

admissible as per rules and rate per km. claimed are as per prescribed rates.

NATIONAL HOLIDAY ALLOWANCE:

i) The allowance is claimed only for those nongazetted official, who are essentially required to work on National Holidays and the booking of staff on National Holidays had the sanction of the competent authority i.e. DRM/ADRM etc.

ii) The staff in whose favour the allowance is drawn has actually worked on that day as per the attendance register.

iii) The rates of allowance claimed are in accordance with the rates furnished by the Railway Board from time to time. 11)

OVER TIME ALLOWANCE:

i) Necessary Registers are maintained to record the overtime worked and entries attested by the Gazetted Official.

ii) Necessity for working overtime should be closely scrutinized. iii) The rate of allowance is correct.

iv) The actual O.T. worked and allowance claimed is in accordance with the sanction.

v) The entries in the Register and O.T. slips have not been altered without proper attestation.

vi) The total O.T. allowance claimed agrees with the O.T. Register. vii) Classification of staff is done, as per HOER and that the calculation of O.T. is correct. 12)

RENT ROLLS:

i) Rent Rolls are prepared correctly including all the employee’s who are in Rly. Quarters. 124

Inspection Section

ii) Rent, water, conservancy charges shown in the statement are correctly recoverable from the staff. iii) Electrical energy charges are recovered correctly from all the staff in occupation of Rly. Quarters. 13)

BUILDING REGISTER:

i) Necessary Building Registers are required to be maintained by the Engg. Subordinates and a copy of the same is available in the Personnel Branch for forcing correct recoveries. ii) Complete details viz., Plinth area, type of the building, electrical installations etc. are indicated both for service and residential buildings.

iii) The Register is updated every time when buildings are constructed/dismantled.

iv) The Register is periodically reviewed to ensure that all the Buildings in that particular jurisdiction are brought into the Register. 14)

LOANS AND ADVANCES (RECOVERY REGISTER):

i) Details of various advances sanctioned to the employees are recorded correctly and the recoveries made are posted correctly individual employee wise. ii) Conditions stipulated for grant of various advances are satisfied.

iii) Balances of advances are struck correctly every month and it is ensured that the advances are recovered within the permissible installments. iv) In the case of interest bearing advances, the recovery of interest is certified well in advance and recovery towards interest commenced immediately on completion of principal amount.

v) In the case of staff transferred from other units, the recovery of loan amount are correctly brought into the Register and checked with the LPC. Similarly 125


in the case of transfer of employee’s to other units, the LPC reflect the correct amount of loan due for recovery.

vi) The Register is reviewed by the responsible official periodically. 15)

FESTIVAL ADVANCE:

i) Festival Advance is sanctioned to the eligible employees based on their basic pay.

ii) Recovery Register is maintained allotting separate folios for each festival. iii) Recoveries are commenced in time and completed within 10 instalments. iv) In the case of transfer, the amount due for recovery is correctly indicated in the LPC.

v) In the case of staff transferred from other units, the amounts due as indicated in the LPC are recovered correctly and recoveries posted accordingly. NOTE: Since, the expenditure on Festival advance is charged to the salary head and no suspense Account is maintained, a complete check of recovery is to be ensured during inspection. 16)

DIET CHARGES:

i) Diet charges statements are correctly received and details are posted in the recovery Register.

ii) Recoveries towards Diet Charges are made as per the diet charges statement. iii) The diet charges billed by the Medical Department are test checked to see that they are correct as per the prescribed rates.

iv) Outstanding as per the register should be reviewed and advised for proper action for recovery. 126

Inspection Section

17)

RECOVERY OF RENT:

i) Rent and conservancy charges are recovered from all those employee’s who are in occupation of Rly. Quarters. ii) Rent has been recovered according to plinth area and type of the quarter.

iii) Water charges are recovered from all the quarters occupied by Gazetted Officers, according to the type of the Rly. Quarters, at the prescribed rates.

iv) It has to be checked that Rent is recovered from the employees, who have been allotted quarter and not occupied/delay in occupation beyond 7 days etc.

v) Damaged rent/special licence fee for unauthorised occupation are correctly recovered as per extant rules till the quarter is vacated/evicted. 18)

REIMBURSEMENT OF TUITION FEES AND CHILDREN ALLOWANCE SCHEME:

i) Necessary Register is maintained to record the receipt of claims, claims admitted and rejected. ii) The claims admitted are correct and supported by authenticated documents. 19)

PASSES/PTOS:

i) Stock of passes, PTO books and Blank card passes is not in excess to the requirement. ii) Pass/PTO books available in stock are correctly entered in the Stock Register. iii) Continuity of the Books (Pass and PTO) are checked and certified.

iv) Passes and PTOs are issued as per the Rules and as per the eligibility of each employee. v) Necessary Register’s are maintained calendar year wise and all issue of Pass and PTO’s are correctly entered against each employee’s account. 127


vi) Passes are issued on correct route, inclusion of dependent in the pass, validity period etc. are test checked from the counter foils. vii) Family declarations are obtained from all the employee’s at regular intervals.

viii) Separate Accounts are maintained for issue of pass on School Account, complimentary passes on retirement Account. etc. ix) Used passes are obtained from the employees and pasted to the counterfoils.

x) The issue of Emergent Duty Passes are as per the rules and not issued for more than 7 days.

xi) All the pass books & PTOs are kept under safe custody. xii) Residential card passes are issued as per rules and separate ledger is maintained for this purpose. It should be ensured that RCP’s are not issued for employees those who are availing Transport allowance. Necessary declaration is obtained for issue of residential card pass. 20)

RECOVERY OF ELECTRICAL ENERGY CHARGES

i) Advice from the SR.DEE is being received for the entire employee’s who are in occupation of Rly. Quarters for recovery of Electrical Energy Charges.

ii) Recoveries are made correctly.

iii) Under charges/over charges if any, are adjusted/and recoveries made correctly. iv) There are no Railway quarters without recovery of Electrical charges. 21)

RECOVERY OF ADVANCE OF PAY ON TRANSFER:

i) Separate Register is maintained for watching the recovery of Advance of Pay. 128

Inspection Section

ii) Proper sanction is obtained for sanctioning of Advance of Pay.

iii) In case the employee has drawn advance of pay before effecting transfer, the same should be recorded in the LPC. iv) There is no delay in recovery, and recoveries are completed within a period of 3 months. 22)

NIGHT DUTY ALLOWANCE:

i) Proper record is maintained for the night duty performed, and all the entries are attested by responsible official.

ii) Employees for whom the allowance is claimed are eligible to draw the same. iii) The weighted hour of night duty has been correctly calculated.

iv) The rates of night duty allowance per weighted hour of night duty are correct with reference to the basic pay of the employee. v) Proper sanction is obtained.

vi) Certificate furnished are correct. 23)

COURT ATTACHMENT REGISTER:

i) Register for court attachment is maintained properly.

ii) Full particulars regarding employee’s name, designation, station, staff no., total amount to be attached and no. of instalments etc., are recorded in the register and attested by the bill drawing officer. iii) Particulars of the court order are clearly written in the register.

iv) The amount referred to in the attachment order is recovered and noted in the register.

v) Necessary details of payment of the court attachment to the concerned court i.e. Cheque No. etc. are posted in the register. 129


24)

GRANT OF TRANSFER ALLOWANCE:

i) Transfer and package allowance is granted as per Rly. Bd.’s instruction and the revised orders based on VI PC. Recommendations are correctly followed.

ii) It has to be ensured that Transfer grant is allowed based on actual transfers caused out/with reference to O.O., LPC, Joining report etc.

iii) In case of employees staying in Rly. Quarters, the transfer and packing allowance is drawn after vacation of the Rly. Quarters. iv) The composite Transfer Grant in the case of staff transferred within the Hqrs. /Divl. Area allowed if the official is actually vacated the residence. This has to be checked with the authenticated documents. 25)

PAYMENTS UNDER WORKMEN’S COMPENSATION ACT:

i) Whether a register is maintained to show the details of injury contracted while on duty and the payments made under W.C. Act.

ii) The amount of compensation paid has been worked out in accordance with provisions of the act and all conditions of payment are fulfilled. iii) The amounts of 1/2 monthly payments are adjusted in the leave salary. iv) In case of Hospital leave sanctioned, it is as per the rules and competent authority’s sanction obtained. v) It has to be ensured that the workman is a regular Railway employee and not a casual labour, etc.

vi) Where the Railway has paid the compensation for contractor’s labour by virtue of the provisions in the Act, it has to be recovered from the contractor without delay. 130

Inspection Section

26)

STATION PAY ORDERS:

i) Issue of SPO’s are justified.

ii) The amount withdrawn from station earnings are permissible items as per the extant rules. iii) Accounts copy of the Pay Order is received correctly in the Accounts Office.

iv) The SPO’s received in the accounts office are properly checked before adjusting the transaction in the respective accounts. v) The station withdrawals are duly supported by sanction of the competent authority not less than a Sr. Scale Officer, SM/ASM’s signature, recipient signature etc.,

vi) The amount withdrawn is kept in the suspense account till the transaction is completed, and necessary vouchers are received. vii) In the case of amount withdrawn towards funeral advance etc., the amount is adjusted in the settlement dues of the deceased employee.

viii) The Head of Account shown in the Pay Order is correct and expenditure adjusted to the correct Head of Account. 27)

REGISTER OF WITHHELD AMOUNT:

i) A register is maintained with complete details, viz. PPO reference, date of retirement, reasons for the amount withheld etc., ii) Periodical review is undertaken and prompt action taken for release of the withheld amounts.

iii) All dues/recoveries are adjusted before the withheld amount is released for payment. iv) Test check of few cases released from withheld amount to ensure that amount is released for payment correctly. 131


28)

MUSTER ROLLS AND LABOUR PAY SHEETS:

i) Muster Rolls are maintained properly and handled only by the authorised officials viz. SE (P.Way), SE (Works) etc.

ii) It is maintained properly rendering it difficult to tamper with or make unauthorised additions or alterations in the entries once made.

iii) To ensure that the Muster sheets are original and bear the initials of the officer on the right hand corner and the same is written daily noting the number of employees present, absent, leave etc, and closed by the incharge official with initials.

iv) The name, designation and rate of Pay of the employees are written correctly.

v) Labour pay sheets are made in accordance to the muster and number of days worked by the employee. vi) The rate of pay agrees with the service records and is as per the rules. vii) Necessary sanctions exists and the nature of work for which the labourer is engaged correctly written in the muster.

viii) Absence during assumed attendance has been correctly adjusted.

ix) The muster roll and paysheet agree with each other in every respect and correct allocation is given. 29)

PAY BILLS:

i) Pay and allowances were drawn correctly. ii) All recoveries are made correctly.

iii) No. of days wages drawn were as per the attendance and absence during assumed period of attendance has been regularised correctly. iv) Special Pay, Personnel Pay, leave salary etc., if any are drawn correctly and as per rules. 132

Inspection Section

v) Rent recovery, Elec. Energy recoveries for the staff occupying quarters are done correctly. vi) Increments are drawn correctly.

vii) CGIS and other statutory recoveries are made correctly.

viii) All accompaniments to the pay sheets are attached and are correct. ix) The posts for which salaries drawn are as per the scale check and necessary scale check statement attached to the pay sheet.

x) In case of work charged posts necessary currency exists for the posts operated.

xi) In case of Fixation of Pay/revision of pay due to promotion, revision of the Grade etc. are done correctly and certified by Accounts Office and suitable entries made in the service register. xii) Recoveries towards Festival advance is made correctly and immediately after receipt of the advance. This has to be checked duly connecting the memorandum of sanction.

xiii) T.A. claims are allowed based on certified copy of the T.A. summary by Accounts Office and are claimed correctly. xiv) In case of supplementary Pay Bill proper care is taken to ensure that necessary certificates are furnished, and suitable entries are made in the relevant records to avoid double payment.

xv) Allocation for the wages and recoveries are furnished correctly.

xvi) In case of Running Staff the wages and allowances, (Mileage Allowance) OT etc., are properly and correctly drawn. xvii) Memorandum of difference is checked carefully for the differences mentioned there in for every item. 133


30)

REVIEW OF LAST PAY CERTIFICATES:

It should be seen that:

31)

RAILWAY QUARTER ALLOTMENT REGISTER:


i) The last pay drawn by the employee has been correctly mentioned in the LPCs. ii) Outward LPCs should be test checked with recovery registers to ensure that the outstanding balances if any are correctly mentioned. iii) In case the employee is in occupation of Railway Quarter, LPC should clearly indicate the period up to which permission obtained penal rent if any to be recovered etc. iv) In the case of Inward LPCs, it should be seen that the amount due for recovery towards loans and advances, advance of pay if any are correctly recovered. Inward LPCs should be test checked with pay sheet and recovery registers. i) Allotments of Railway Quarters are made to the eligible employees as per the priority register. ii) There is no delay in allotment or occupation after allotment.

iii) If there is delay in occupation of Railway Quarter after allotment i.e. beyond the permissible time, bill drawing unit has been advised for recovery of rent besides stoppage of HRA. iv) There is no quarter lying unoccupied for a long time.

v) There are no instances of unauthorised occupation, subletting, retention beyond permissible period etc. If so, suitable action has been taken as per extent rules. 134

Items that are peculiar to various executive office and the points to be looked into during local inspections are given below:

Inspection Section

(III)

ENGINEERING OFFICES (HEAD QUARTERS, DIVISIONS AND FIELD UNITS):

1) Tenders.

2) Agreements and Work Orders.

3) Measurement Books and Register of M.B. 4) Standard Measurements. 5) Contractor Bills.

6) Contractor ledger.

7) Muster Sheets/Labour pay sheet. 8) Stock verification.

9) Dead Stock/Tools and Plants Register. 10) Materialsat Site Account.

11) Check of RE 9B/Challan Books.

12) Issue of Steel, Cement, to contractors. 13) Ballast ledger/Engine hire charges. 14) Ballast Challans.

15) Building Registers.

16) Register of level crossings. 17) Register of sidings.

18) Review of Money Value Books. 19) Leasing and Licensing. 20) Completion Reports.

21) Monthly Progress Report. 22) List of failed contractors. 23) Risk and Cost Tenders.

24) Variation in Agreements. 25) Imprest Account.

26) Machinery and Plant. 27) Quarters Registers.

135


1.

TENDERS:

i) The object and purpose for calling Tenders has to be checked. Necessary estimate and plan is prepared and sanctioned by the competent authority for the work for which tender is to be called for. Tender Register is maintained with all relevant details. Tender notice has been issued with complete details and sufficient time as required has been given. EMD at prescribed rate has been correctly mentioned. The name of the tenderers to whom the Tender Forms are issued and the Money receipt details are indicated in the Register. Cash collected for the sale of Tender forms has been accounted correctly.

ii) Tender schedules before floating for Tenders has been verified by finance (wherever necessary)

iii) Tenders have been called for in advance of the date of commencement of work, and due publicity has been given. iv) The rules in regard to calling for limited, and open tenders have been observed.

v) Tender opening register is maintained and that this duly prepared checked and initialled by the executive and Accounts Officers. It should be ensured that only firms/Agencies to whom tender forms sold have tendered. vi) Late and delayed tenders are dealt as per instruction’s issued by Railway Board / GM 2.

AGREEMENT AND WORK ORDER:

i) Details of Agreement or work order are entered on a separate page in the register and particulars of bills passed entered correctly against each agreement.

ii) Particularly the Engineers and extension, variations in rates/qty. have reviewed the register if any are correctly indicated. 136

Inspection Section

iii) The rates and the quantities, Agreement value etc. entered in the register are tallied with the original Agreement. iv) Excess if any have been duly authorised by the competent authority. v) Finance vetting has been obtained before issue of work orders, if the value exceeding the prescribed limits. vi) There is no deliberate splitting of WOs to avoid finance vetting. vii) Date of completion is correctly mentioned. viii) The work has been completed with in the due date/ extended date or reasons for delay in execution properly recorded. ix) W.Os are duly crossed after final payment. 3.

MEASUREMENT BOOKS:

i) The Register of M.Bs maintained in the AEN’s office have complete details viz., Dt. of opening, to whom issued, when issued, dt. of return etc.

ii) M. Bs no longer required are returned to AEN’s office promptly. iii) Proper arrangements exist for preservation of M.Bs i.e. for 10 years after completion of the work.

iv) Date of Measurement recorded in the M.B. by the officials concerned is to be test checked with relevant record viz., diary, TA Journal etc. v) Recording of Measurements are done as per rules. In case of subordinates the measurements are test checked by officers as per the prescribed percentage.

vi) The measurements recorded in the ‘On Account’ and ‘Final bills’ should agree with the measurements recorded in the M.Bs maintained in AEN/Office. For this purpose inspecting official should carry certain paid vouchers of contractor bills. 137


4.

STANDARD MEASUREMENTS:

Test check that the service/residential buildings for which paintings/colour washing is done as per entries in the standard measurement books really exists as per the entries in the Register of Buildings.

5.

CONTRACTORS BILLS:

i) The inspecting official should carry paid vouchers (contractors bills) and verified with the MBs available with AEN/Office, to ensure that the work done for which payment made agree with the initial records. ii) Material statements accompanying final bills should be checked with reference to materials issued to contractors according to issue Note/Challans and the balance quantity returned and accounted for correctly. Empty cement bags returned are accounted properly.

iii) In term of cl.37 (1) of General Conditions of Contract, all test checks conducted as required by Railway should be wholly at the expense of the contractor. Hence, it should be ensured recovery of charges are effected from the contractors for testing quality of steel, cement, bricks etc. unless the same is agreed to be borne by Railway. iv) Contractors have accepted the final measurements.

v) Bills for earthwork are as per the entries in the level book, earth work statement and measurement books etc.,

vi) In case of delay/extension etc. necessary penalty to be recovered as per the subsidiary Agreement are done correctly.

vii) The contractor is not issued materials more than the requirement. Physical progress of the work has to be compared with the issues during inspection. 138

Inspection Section

6.

CONTRACTORS LEDGER:

i) Contractor ledger is maintained properly in the Accounts Office and all entries are made.

ii) Separate page is maintained for each Agreement and the ledger is maintained like a personal ledger of contractors. iii) The bills passed should be test checked with the entries in the contractors ledger. iv) For the stores issued out side the scope of the contract, the amount is debited in the ledger. v) Periodical review and reconciliation of the contractor ledger with work register is being done. 7.

MUSTER SHEETS/LABOUR PAYSHEETS:

i) Muster/Attendance of Group ‘D’ staff is recorded efficiently in the Forenoon and Afternoon.

ii) Muster sheets are serially numbered and counter signed by the authorised official.

iii) The detail of work for which the labour is engaged is recorded correctly.

iv) Labour pay sheet prepared based on muster is correct and the No. of days wages drawn, after considering the Absent days etc. v) The attendance is test checked at least once in a month by Executive Official. 8.

STOCK VERIFICATION:

i) Stock sheets received from the Accounts Department have been attended to promptly and remarks sent. ii) Excess/Shortfall has been adjusted correctly in the ledger as per the S.V. Sheets, and remarks sent to Accounts. 139


9.

DEAD STOCK/TOOLS AND PLANT:

i) Separate ledger is maintained for the Dead Stock items and Tools and Plant. ii) Each entry in the Dead Stock Register is supported by date of receipt, from whom received, value etc.

iii) Each Dead Stock item has been supported by proper identification number for verification and check iv) Dead stock viz. brief cases etc. supplied to the officials are having proper acknowledgement. v) T & P issued to the workers are properly recorded and accounted with employee’s name and designation.

vi) Proper action is taken for recovery of the cost of the tool in the case of non-return of tools after the work is over, or in the event of transfer/retirement of the employee.

vii) It has to be ensured all the PCs, Computer Accessories etc. are also entered in the dead stock register and shown to the ASV during verification.

viii) The inspecting official has to ensure that all the new items viz., PCs, XEROX Machines, TVs and all other Electronic items, procured in the office for use are correctly entered in the Dead Stock Register.

ix) Jeep/Lorry/Vehicle should also find a place in the T & P ledger, and the periodical replacement of tyres etc. should be recorded in the Register.

x) The usage of XEROX paper, computer floppy etc. have also to be test checked by the inspecting official and has to be ensured that proper register is maintained and entries are made as and when used.

10.

‘MATERIALS ATSITE ACCOUNT’ :-

i) As per the provisions in the Engineering Code, Engineering subordinate has to prepare ‘MAS’ return for all special work etc. costing Rs.3 lakhs and above. 140

Inspection Section

The return has to be prepared work wise indicating the Materials received, issued and Qty. balance.

ii) ‘MAS’ Returns should be sent to District/Divisional Unit for further necessary action, and carrying out necessary adjustments as and when materials are consumed for the work. iii) The inspecting official has to ensure whether the ‘MAS’ Return are prepared efficiently and necessary adjustments are carried out. The preparation of ‘MAS’ return will reveal the value of Materials held by the Engg. Subordinate at any particular period of time. 11.

RE 9B/CHALLAN BOOKS:

i) RE 9B/Challan Books for issue of stores to other Unit/ Contractor etc. are maintained correctly. ii) The Qty issued has to be test checked with the ledger.

iii) Proper acknowledgements are obtained for all issues.

iv) Necessary adjustments have been carried out for issue of stores to other units. v) In case of issue of stores to NonRailway bodies, the cost of the stores is raised correctly. Necessary departmental charges and other incidental expenses are included in the claim. 12.

REVIEW OF STEEL AND CEMENT LEDGERS:

i) As per extant instructions of Rly. Bd. the contract agency has to use his own steel and cement. However, if the issues are for petty Zonal Works or issues made to departmental labour, it has to be seen that the issues are as per the actual requirement and the work for which it is issued had the sanction of AEN/other responsible official. ii) The return of empty cement bags by the Contract Agency has been accounted properly, is to be returned as per tender conditions. 141


iii) Proper arrangements exist in the SE/Works for storage of cement/steel etc. and this aspect has also to be checked by the inspecting official. 13.

BALLAST LEDGER AND ENGINE HIRE CHARGES BILLS:

i) The supply of ballast by the contractors has to be measured and recorded in a register. This has to be personally maintained by SE/P.Way indicating the location, quantity etc. This ledger has to be test checked with the Agreement, supplies made and Measurement Books etc. ii) The purchases are not made unnecessarily.

iii) Engine hire charges if any advised promptly, to Divisions/Headquarters for adjustment. 14.

BALLAST CHALLANS:

i) The accepted copies of the challans have been properly kept. ii) The contractor’s loading and unloading bills have been prepared correctly. iii) B.T. Trains are not detained on contractor’s account more than the prescribed time and in the event if detention is necessary wharf age/demurrage charges are collected from the agency.

iv) The entries in the B.T. Challans agreed with the Guard’s Journal concerned. 15.

BUILDINGS REGISTER:

i) Buildings Register maintained in the SE/Works/ Office has to be verified to ensure that all the buildings in his jurisdiction are entered with complete details. All the new buildings and quarters are entered and number allotted. ii) Dismantling of the building is recorded and entries made correctly with authority. 142

Inspection Section

iii) Additions/Alterations are done correctly. 16.

REGISTER OF LEVEL CROSSINGS:

i) Records are maintained to indicate the level crossings for which maintenance charges are recoverable from outsiders.

ii) Details for manned/unmanned L.Cs, Engg. and Operating L.Cs etc. are indicated correctly.

iii) The number of staff engaged for maintenance of the L.Cs is mentioned. 17.

SIDINGS:

i) The No. of sidings in the jurisdiction of SE/P.Way and connected records has to be checked.

ii) Whether the sidings are periodically inspected by the SE (P.Ways) and the details intimated to Accounts Office for raising the ‘Debit’ against the siding owners. (inspection charges)

iii) The inspecting official has to check whether any extra expenditure incurred during maintenance of siding and if so the cost of the same advised to Accounts Office for preferring the claim from the siding authorities. iv) The inspecting official has to check whether Railway Staff working in the siding has availed the rent free accommodation provided by the siding owner. In such case, it has to be ensured that they are not drawing HRA from Railways. 18.

MISC. CASH REMITTANCE BOOKS:

i) Misc. Cash Remittance Books has to be checked with reference to the Amount realised towards sale of Grass, Wooden sleepers if any, and other items for which cash is received. 143


ii) The remittance particulars have to be compared with the acknowledgements received and ensure no delay in remittance.

iii) The correct realisation of the Amount has also to be verified. 19.

LEASING AND LICENSING:

i) Proper Agreement is executed and all Agreements for leasing and licensing of Engg. Plots, are available. ii) License fee has been paid periodically and action has been taken in the case of delay in realisation of dues by levying penalty. iii) Licensing of land under “Grow More Food” Scheme, has been provided only to the deserving Rly. Staff and not to outsiders. No fresh cases of licensing under “GMF” scheme is given. iv) Licence fee is realised correctly. v) Necessary Registers are maintained separately for acquisition and relinquishment and it contain up to date information. vi) Where land has been relinquished necessary credits have been received. vii) It has to be ensured that revision of licence fee has been made whenever the Board revises the same. 20. COMPLETION REPORTS: i) It should be seen whether for all completed works, the accounts have been finalised and C.Rs drawn. ii) The pending cases have to be reviewed for the delay. 21.

MONTHLY PROGRESS REPORTS:

Monthly Progress Reports indicating the progress of various phases of works executed/in progress etc. has to be checked. If there is any abnormal delay, or works not taken up after awarding the contract, such cases have to be reviewed and deficiencies if any brought out in the inspection reports.

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22.

LIST OF FAILED CONTRACTORS:

23.

A register indicating the list of failed contractors has to be maintained at Divisional and Head Quarter’s level. This Register has to be reviewed by the inspecting officials .Whether the Register is updated periodically is also to be seen.


VARIATION IN CONTRACT:

i) Variations in quantities of any item/items exceeds 25% of the total value of the Tender accepted cost are correctly dealt with as per extant rules. & Approval of completed authority for the same is available.

ii) It has also to be seen that in all cases of variation in quantities exceeds 25% prior Finance Concurrence is obtained as per extent rules. 24.

IMPREST ACCOUNT:

i) Cash Imprest for general purpose and special purposes like petrol Imprest for welding works etc. has to be checked by the inspecting official. The actual cash balance is verified and tallied with Imprest Account and vouchers on hand verified and certified.

ii) The Amount spent from Imprest has to be reviewed to see that they are spent for the correct purpose for which Imprest is sanctioned. 25.

MACHINERY AND PLANT:

Machineries, like welding machines, generators etc. available in the field units are correctly accounted and proper history book is maintained for each item and no machinery is lying idle or out of commissioning.

26.

QUARTERS REGISTERS:

One of the important activity of SE/Works is the maintenance of staff quarters in his jurisdiction. While reviewing the Staff 145


9.

Quarters Register, it should be seen that: Proper Register is maintained for each type, no quarters is lying vacant for longer period, there is no un due delay in allotment of staff quarters etc. Railway quarter sublet if any or unauthorized occupation of Railway Quarters noticed if any during inspection, the matter should be brought to the notice of Personnel Department, and to Head Quarters for prompt action.

SPECIAL ITEMS FOR MECHANICAL AND OPERATING DEPARTMENT:

1) Review of Target of Out Turn and Actual. 2) Review of M & P items and its utilisation 3) Review of Work Orders

4) Review of cost of POH of coaches, wagons etc.

5) Review of Time taken to repair of Rolling stock from placement to release 6) Deposit Works Hiring/Leasing of Locos etc. 7) Running allowance/O.T. of running staff

8) Review of Man power utilisation in Work shops and C & W units 9) Periodical Medical Examinations 10) Imprest stores

11) Review of Stores drawn for repair/POH activity 12) Trip ration of HSD Oil to Drivers

13) Duty movement of Drivers/Guards at crew control office 14) Vision Test Registers

15) Check of accounts of Printing and Sale of Railway Time Tables 1.

REVIEW OF TARGET OF OUT TURN:

i) Railway Board has fixed the Target of out turn of 146

Inspection Section

POH of coaches/wagons for each workshop. The infrastructure facilities provided in the workshops are according to the targeted activities. The inspecting officials has to check the out turn of Monthly/Annual with reference to the Targets fixed and if there is any shortfall in the out turn the same has to be analysed.

ii) Incurrence of expenditure in the workshop should corelate with the outturn. This aspect has to be verified by the inspecting official.

2. REVIEW OF M & P ITEMS AND ITS UTILISATION: i) The Register of Machinery and Plant available in the workshop has to be reviewed. ii) It should be seen that no machines are lying idle or excess to requirement. iii) Under utilisation of Plants and Machines if any have to be identified and advised for better utilisation or transfer to other needy units. iv) It should be seen that no Machines are kept out of commissioning within the warranty period. If so, action has been taken to replace/rectify the same within the warranty period. v) The condemnation of Rolling Stock if any, has been done correctly as per Railway Board instructions. 3.

WORK ORDERS:

i) It should be seen that work orders are issued correctly and continuity number is maintained.

ii) There should not be abnormal delay in completing the job.

iii) In case of completed work orders the charges have been brought to account correctly.

iv) The list of work orders issued during the month has been sent to accounts promptly and in which no work orders should be out of series, and the allocation furnished is correct as per Accounting classification. 147


4.

REVIEW OF COST OF POH OF COACHES/WAGONS:

The cost of POH of coaches/wagons etc. so arrived periodically by the CME on various workshops in the Zonal Railway should be checked to see that there may not be abnormal variation in costs between workshop to workshop for the same activity. The reason for variation if any has to be analysed.

5.

TIME TAKEN FOR MAINTENANCE OF COACHES/WAGONS:

i) In the case of Primary Maintenance, Secondary Maintenance and other repairs, it should be seen that there should not be undue delay for repair and release of the Rolling Stock as it would affect the wagon Turn round.

ii) The Register of placement and release of wagon/ coaches in the C & W/Depot and Wagon Workshops should be reviewed. The reasons for delay if any should be reviewed and reasons such as want of spare parts etc. should be brought to the higher authorities through inspection reports, for remedial action. 6.

HIRING/LEASING OF LOCOS AND WAGONS:

During the inspection of Diesel Sheds/Work Shops, it should be seen whether any of the locos/wagons leased to outside bodies like NTPC, APSEB etc.

i) In such cases, necessary cost has been correctly estimated and claimed/

ii) In case of Repair and POH activities done for the Locos/Wagons of NonRailway bodies, it should been seen whether the cost of repair has been correctly estimated and the party deposited the cost in advance.

iii) The Agreement executed in this connection has to be reviewed to ensure all charges and other conditions are correctly incorporated and it is being followed. 7.

RUNNING ALLOWANCE/O.T. PAYMENT:

i) The inspecting official has to carry the paid ‘OT’ 148

Inspection Section

Journals of Drivers and Guards during inspection of SS/Office, Crew Control Office etc.

ii) The overtime shown in the ‘OT’ Statement/Journal has to be compared with the Signing ‘OFF’/Signing ‘ON’ register maintained in the crew control office and other records of SS/Office i.e. diaries etc. iii) The cases of abnormal ‘OT’ payment have to be checked to ensure that there is no fictitious claim and the Running staff are not intentionally absent/leave on rotation basis to claim ‘OT’.

iv) ‘OT’ rules are strictly observed and Minimum roster hours are observed. 8.

REVIEW OF MAN POWER:

i) The availability of staff in the Work- shops, C & W Depots, SS/Office, Diesel Sheds etc. has to be reviewed critically with reference to the activity performed.

ii) It should be seen that there is no idle labour and there is proper Work Justification.

iii) The prescribed yardstick for requirement of men for POH of Wagon/Coaches etc has to be compared with reference to the ‘Out Turn’ and surplus staff if any identified.

iv) Whether the improvement in method of working due to SOPWCRhisticated machinery, closing down of Loco Sheds, Unigauge etc. has resulted in the reduction in Manpower at C & W Depot, Work Shops, has to be seen. 9.

PERIODICAL MEDICAL EXAMINATION:

i) The Register of ‘PME’ has to be reviewed and seen that all running staff Group ‘C’ and Group ‘D’ have undergone Medical Examination as per the periodicity and the results recorded correctly. 149


ii) In case of failure in Medical examination, proper action has been initiated for alternate job without delay. 10.

IMPREST STORES:

i) Imprest schedules have to be checked to ensure that the stores are correctly recouped and the requirements are correctly assessed.

ii) If the consumption of stores is very low, and stock held is more than the average requirement, the unit will be advised to review and reduce the Imprest schedules for the next period. 11.

12.

13.

150

REVIEW OF STORES DRAWN FOR REPAIR/POH ACTIVITY: Materials drawn for repair and POH activity should be checked to ensure that the stores drawn are properly utilized according to the requirement and scrap stores are returned to the Depot immediately. Shop floor inventory of stores balances to be carried out in one or two shops during inspection of Work Shops, Sheds etc.

TRIP RATION OF ‘HSD’ OIL: The inspecting official during inspection of fuelling point/ sheds should check the issue of HSD oil to the Drivers as per the shed returns and compare the same with issue tickets and drivers log Book to ensure that there is no variation. The consumption of fuel should also be checked to see that there is no abnormal variation to the “Trip Ration” fixed by the Division for the particular section. Variation if any noticed should be brought out in the inspection report for review of the Mechanical Department. CREW CONTROL OFFICE:

The duty movement of Drivers and Guards viz. ‘signing off’ and ‘signing on’ should be checked and compared with link arrangements. Abnormal link arrangements, noticed if any, should be reported in the inspection report to avoid unnecessary payment of OT/Running allowance.

Inspection Section

14.

VISION TEST REGISTERS:

It should be seen that;

i) Vision test register is maintained with all relevant particulars.

ii) Drivers, Guards, etc. have been medically examined as per the periodicity and the result of Medical examination indicated in the register.

iii) The register is regularly checked and reviewed by the responsible officials of the Operating Department. 10.

SPECIAL ITEMS FOR COMMERCIAL BRANCH:

LICENCE FEE FROM VENDORS, BOOK STALL KEEPERS, PLAT FORM STALL CONTRACTORS, CYCLE/SCOOTER STANDS ETC : i) It should be seen that the licence fee is correctly levied and necessary contracts have been entered into as per extant rules.

ii) The licence fee due has been correctly realised and remitted to Railways account.

iii) If the license fee/royalty is to be recovered based on Annual sales, it should be seen that proper machinery exists to verify the Annual Sales, and the amount of license fee is correctly recovered. iv) Conservancy/Cess charges to be levied for all Platform Stall Contractors. HANDLING CONTRACTS:

i) It should be seen that the handling of parcels, goods etc., at important stations based on the result of lowest tender and proper agreements have been executed. ii) Handling Bills sent to Accounts Office have been prepared correctly and relevant records available with the contract agencies. 151


REFUNDS/CONCESSIONS:

It should be seen that the refunds arranged are admissible as per rules.

ACCOUNTS OF SALEABLE PUBLICATIONS CONCESSION BOOKS, TIME TABLE ETC.:

VIZ.

TARIFFS,

i) Proper Accounts has been maintained for each of the item received and sold.

ii) Un-sold copies if any are promptly disposed/return to the required stations. DEMURRAGE AND WHARFAGE:

i) Demurrage and Wharf age charges waived at different levels are as per the permissible limits. ii) There should not be any irregular waival, which will result in loss of revenue to the railways. iii) Outstanding dues are realised without delay. REVIEW OF SIDING AGREEMENTS: It should be seen that:

i) Siding Agreements have been executed for all the sidings, which have been opened for Traffic. ii) Fixation of Trip charges and siding charges are fixed without delay with finance approval.

iii) Sidings closed for traffic if any should be intimated to Engineering Department advising for dismantling, and disposal of released materials. iv) Before closed/dismantling it should be ensured that railway dues are recovered from the siding owners. REVIEW OF CLAIMS CASES:

i) The claims case admitted in the claims branch are properly investigated before payments are arranged.

ii) Claims cases involving staff responsibility if any should be referred to the concerned department for initiating action. 152

Inspection Section

iii) There should not be undue delay, in settling the claims cases. INSPECTION IN S & T BRANCH:

i) It should be seen that proper arrangements exist for disbursement of Telephone Bills to various officers. ii) New Connections, Provision of new ‘DOT’ phone, shifting of ‘DOT’ phones etc. is done with the sanction of the competent authority.

iii) No delay in shifting/disconnecting ‘DOT’ phones from the residence of the officer after superannuation/ transfer etc.

iv) In case of Temporary connection of ‘DOT’ phones for the VVIP’s visit (Railway Minister) etc., the deposits paid to the Telephone Department are adjusted immediately after the event is over. v) Walkie-talkies are supplied only to the essential staff and every issue had the sanction of the competent authority.

vi) Provision of STD/Internet connection to officers are made only with the approval of Competent Authority and as per the guidelines issued by the Board. vii) The purchase orders for supply of cables, S & T equipments should be reviewed with reference to the terms and conditions.

viii) For loss/theft of S & T cables/equipment it should be seen that the matter has been reported to Security Department and adequate measures are taken to tighten the security arrangements.

ix) Apart from the above, the following items viz., Review of stores, purchase orders, regularization of excess calls, personnel calls made on DOT Phones, etc. are also to be reviewed. x) Assets Register is kept up to date.

153


SECURITY BRANCH :

The following items should seen during inspection of Security Branch.

i) The policy and procedure adopted for recruitment of RPF personnel.

ii) Deployment of RPF personnel to bandobust duties and recovery of charges from the concerned Ministries/ Departments. It should be seen that charges are correctly worked out and included in the claim. iii) Log Book of Vehicles, Uniforms Registers, imprest account, etc.

iv) Register of Theft detected and reported to the Security Department by other Departments and action taken thereon.

v) Register of Arms and Ammunition reviewed to ensure that receipt is correctly posted.

vi) Register of uniform should be checked. The receipt and issues are correctly accounted for and issues are properly acknowledged. vii) Status of the apprehended cases dealt by RPG and GRP and the position of enquiries. GENERAL BRANCH:

Log Book of Office Staff Cars: -

i) It should be seen that the staff cars have been used for official purposes Only and the officers signatures/ initials obtained against each movement. ii)

iii)

154

If the cars had been used for private purposes, necessary charges as applicable have been billed and recovered.

Drawal of petrol commensurate with KMs in usage and there is no abnormal variation in the consumption pattern.

Inspection Section

iv) Repairs to the Staff cars have been done as per the provisions contained in ‘SOPWCR’ and all major repairs had the certification from the nominated officers of the Mechanical Department. 2.

3.

4.

5.

Quarter’s Registers for allotment of quarters to officer should be checked to see that there is no delay in allotment of Railway Quarters and the Railway Quarters once allotted is occupied within 7 days. In case of delay in occupation (after 7 days) rent at prescribed rates have been recovered besides stoppage of HRA. Retention of Railway Quarters after permissible period during deputation, transfer etc. are dealt with correctly as per extant rules. Special Imprest/Entertainment expenses: The accounts should be verified and satisfied that every transaction is correctly accounted for and supported by voucher. Balance amount left over if any after the occasion has been remitted back to Railways and necessary vouchers submitted to Accounts Office.

The accounts related to the allotment of Rail Kalyan, Community Hall, allotment of Officer’s Rest House on private account, etc. should also to be checked to ensure that the amount collected are properly accounted and remitted to Railways Account. The rules relating to the allotment are correctly followed.

STORES BRANCH : 1.

REGISTER OF PURCHASE ORDER: IT SHOULD BE SEEN THAT:

i) The Register is efficiently maintained. Continuity of P.O. Nos. is maintained.

ii) The P.O. is signed and issued by the authorised official. iii) The COS is notified of the defaulting firms for action. 155


2.

RECEIPT NOTES:

The quantity received as per firm’s invoice and quantity accepted as per Day Book of Receipts/ledger should be compared to ensure that there is no discrepancy. The stores received are inspected before delivery as per the inspection clause wherever applicable.

3.

4.

5. 6.

REGISTER OF SAMPLES:

The register should be reviewed to find out whether proper accounts are maintained for receipts of samples, their return to the firms or taking them to stock by credit to Stock Adjustment Account. The disposal of the nonreturnable samples should be properly exhibited in the register. All disposals are covered by proper sanction of the competent authority. REJECTIONS REGISTER:

The register should be reviewed to see that the rejected stores if any are properly disposed off and the firm advised for replacement. All such rejections should have proper sanctions and the Accounts Office and COS advised for suitable action. REGISTER OF DEFAULTING FIRMS:

It should be ensured from a general review of the register that the defaulted firms have been noted and orders are not placed from firm’s black listed for default in supply. REGISTER OF REQUISITIONS:

The requisitions received for procurement of stores is vetted by Accounts Office and requirement are assessed correctly based on the past consumption. The long outstanding requisitions should be cancelled in consultation with executive concerned.

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7.

THE PROCUREMENT ACTION INITIATED BY COS SHOULD BE CHECKED AS UNDER:

i) Tender notices have been called for as required and relevant detailed furnished. ii) Sale of Tender forms, and the amount received are correctly accounted and remitted.

iii) Tenders have been opened at the advertised time, date, in the presence of Accounts representative and firm’s representative. iv) All procedures relating to the opening of Tenders have been correctly followed and there is no deviation. v) Tabulation has been done correctly duly filled in all columns. vi) Tabulation forms verified by Accounts.

vii) Tender committee has been formed as per the provisions and all relevant facts have been furnished to the TC members. viii) Purchase orders are placed based on the TC recommendations duly accepted by the competent authority. ix) Purchase order before release has been verified by Accounts wherever necessary.

x) Extensions to the due date of delivery/amendment to the P.O. etc. are given only as per rules and associated finance views obtained wherever financial implications are involved.

xi) In case of defaulted firms risk and cost action has been initiated as per rules.

xii) Liquidated damages for belated supply has been levied as per rules. 8.

SURPLUS STORES:

It should be seen that prompt action has been initiated to form 157


9. 10.

a survey committee for disposal of surplus and nonmoving stores. AUCTION SALES:

Stores already declared as surplus should be disposed quickly through auction sales. It should be ensured that accounts representative associated in the auction sales.

Apart from the above, the following aspects should also been checked by the inspection team especially in Depots,

a) Material in Depots

b) Bincards (Physical balance with Bincard balance)

c) Weighment Register

d) Inward/outward wagon register e) Challan Book

f) Cash remittance Notes in case of auction sales g) Empties accounts

h) Pending stock sheets ELECTRICAL BRANCH

Agreements entered into with the State Electricity Boards for purchase of e lectrical energy should be checked.

2.

1.

In case of supply Electrical energy for Traction purposes, the contract demand and actual consumption should be checked. If the consumption is very low than the contract demand or higher than the contract demand electrical department should be advised for proper review and to revise the contract. Meter Reading;

i) It should be seen that Meter reading has been done from all the residential quarters regularly at the prescribed intervals.

ii) The entries are not been made in pencil. In case, if the Railway Quarter is locked, 158

Inspection Section

necessary entry made as “house locked” in the Register.

iii) Bills have been prepared in time and sent to the Personnel Branch and Accounts Office for recovery without delay.

iv) Meter reading in respect of NonRailway bodies viz. Plat Form Stall, G.R.P., R.M.S offices etc. should be taken every month and bills raised at the appropriate rates. Whether bills are issued every Month should also be checked. v) It should be ensured that the electrical energy charges for outsiders are billed at commercial tariff rate.

3.

Register of M & P Items:

i) The register is kept uptodate.

ii) The condemned Transformers, Electrical poles etc. are disposed through DS8. iii) Assets register is kept upto date.

4. The imprest stores available with AEF, and other stock holders should be checked to ensure with supply and stock. If the issues are less than the stock held, prompt action has been taken for revision of imprest schedule.

5. Surplus stores if any should be reviewed and advised for prompt disposal. RAILWAY RECRUITMENT BOARD

POINTS TO BE SEEN: -

i) Postal Orders, Service Stamps etc. collected from the candidates are properly accounted. ii) There is no delay in encashment of postal orders.

iii) Remuneration paid to the examiner for setting 159


question papers, and valuation of answers with reference to Railway Board instructions from time to time.

iv) Expenditure incurred in the conduct of the mass examination with reference to the prescribed schedules and excess expenditure if any regularised with the sanction of the competent authority. v) Method of disposal of old answer sheets.

vi) Remuneration/over Time allowance paid to the staff in connection with conduct of Examination and interviews. vii) Receipt and expenditure account.

viii) Review of passes issued to candidates called for interview.

ix) Proper security arrangements exists for safety and preservation of records. x) Rebate for the usage of franking machine is regularly claimed from the postal department at the prescribed percentage.

OFFICE OF THE PUBLIC RELATIONS :

The following aspects should be looked into specially:

i) Advertisement, display boards, sign boards, hoardings etc. This phase of work has been decentralised at the Divisional level. It should be seen that proper agreements have been entered into with the advertisement agencies, firm’s etc. The security deposit, advertisement charges are collected properly and remitted to Railways account.

ii) It should be ensured that the payments are made only by DD/Cash. In the event of payments are made through cheque (special case) it should be ensured that the cheques received are realised. iii) In the event of nonrenewal of advertisement, display 160

Inspection Section

iv) CCTV:

board etc., it should be seen that the same are removed from the Railway premises.

(a) Agreement has been executed properly and the charges due are Correctly realised.

(b) Apart from the licence fee it should seen that Electrical Energy charges, rent for the space provided etc. is realised periodically. v) Imprest Account and special contingent fund (imprest) should be checked and seen that the expenditure met from the same is permissible and proper vouchers are kept. vi) Conducted Tours/VIP’s visit:

The accounts for the amount drawn for conducted tours arranged for VIP’s, Media etc. should be checked. It should be seen that proper accounts for the amount spent are kept and the balance amount left if any are promptly remitted to Railway Account.

vii) Register for Photographic materials:

(a) It should be seen that proper accounts are kept towards purchase of films and other materials used for photography. (b) video/photo coverage for the official functions had the approval of competent authority. MEDICAL BRANCH

1.

PURCHASE OF MEDICAL STORES

i) ‘CMD’ at Hqrs. is authorised to procure Medical stores as per the provisions contained in SOPWCR. The purchase orders issued by the ‘CMD’ for supply of drugs to the various Railway Hospitals, Health Units over the Railway has to be checked. ii) It should be ensured that the power for procurement and the financial limit etc. are as per the rules. 161


iii) The P.Os. are issued as per the extant instructions and are signed only by the authorised signatory.

iv) Amendment/Cancellation of P.Os. are issued only with the approval of the authority who is competent to procure the Medicines initially. v) The purchase orders are placed based on proper assessment of requirement viz. indents from various units, and certified by Accounts.

vi) Proper action has been initiated in the event of failure of firm to supply the drugs as per the conditions stipulated in the P.Os. 2.

STOCK OF MEDICINES;

i) It should be seen that, the stock book of drugs is maintained up to date. The receipt and issues agrees with the receipt and issue vouchers. Date of expiry of Medicines are clearly indicated in the Register separately and no drugs are kept in stock after the date of expiry. ii) Action has been taken to dispose off the time expired medicine. 3.

EXPENDITURE ON FAMILY PLANNING;

i) It should be seen that the expenses involved are correctly assessed and debits transferred to the Ministry of Health. ii) The special cash imprest drawn towards various family planning camps are properly accounted for and balance amount if any remitted correctly. iii) Target set by the Railway administration has been achieved and if not the reasons should be analysed. 4.

OCCUPANCY REGISTER;

i) The number of beds available and the occupancy position of the inpatients of the health unit should be checked to ensure that the facilities provided are properly utilised. 162

Inspection Section

ii) Free treatment is given only to the eligible persons.

iii) In case of admission of NonRailway patients for treatment, proper sanction has been obtained and the prescribed charges collected in advance. 5.

DIET CHARGES:

i) In case of inpatients admitted in the Railway Hospitals who have availed diet, (other than those who are eligible for free diet) necessary diet charges at prescribed rates have been correctly worked out and sent to the Personnel Department and Associated Accounts for recovery.

ii) If the diet is provided to the NonRailway persons and the retired Railway employees, the required charges are collected in advance and the accounts are settled before the patient is discharged. 6.

WASHING OF LINEN:

It should be seen that proper records are maintained for the number clothes handed over to the Dhabi’s for wash, date of issue and date of return. Necessary agreements have been entered into and the charges paid are correct and reasonable.

7.

REGISTER OF M & P ITEMS, SURGICAL INSTRUMENTS, UNIFORMS, LINEN ETC.:

i) It should be seen that necessary registers are maintained properly separately for the above items.

ii) receipts and issues are posted correctly and supported by Receipt Vouchers, acknowledgements for the issues. iii) All the M & P items, surgical instruments available in the Railway Hospital are in working condition and if not proper action has been taken to repair or to dispose the same.

iv) There is no item kept as idle, without being commissioned. v) Assets Register is kept upto date.

163


DIETICIAN ACCOUNT:

8.

i) The imprest cash sanctioned and available with the dietician should be checked and cash balance verified and certified.

ii) The nature of transactions met from imprest should be checked to ensure that the items purchased, viz., vegetable, provisions etc. are at reasonable rate and proper records (ledgers) are maintained. iii) It should be seen that the items issued to the cook are according to the scales and the number of meals, breakfast prepared daily are as per the requirements certified by the Matron/Doctor as the case may be.

iv) Arrangements (Agreement) exist for supply of Bread, Milk, Meat etc. should be verified and the requirements/indents placed are not in excess. The charges paid are reasonable. v) The Attendance Register and staff sanctioned for preparation and supply of diet should be verified to ensure that there no excess staff.

vi) The stock available in the storeroom should be test checked and compared with the ledger balance to ensure that there are no discrepancies.

vii) Tools and Plant Register should be verified and unused/empties are properly disposed off. LOG BOOK OF AMBULANCE VANS:

9.

i) It should be seen that the movement of the vehicle is properly shown and acknowledgements obtained. ii) Charges wherever due are properly collected and remitted to Railways Account. 10.

INSPECTION NOTESREVIEW:

164

The Inspection Notes of CMD and other Officers should be reviewed to see that proper corrective action is taken wherever financial irregularities are noticed.

Inspection Section

11.

CASH IMPREST:

i) The cash imprest should be verified and balance certified in the Imprest Register. ii) It should be seen that the amount spent from imprest are reasonable and correct procedures are followed.

iii) In case the medicines are purchased locally to meet urgent need, sanction of the competent authority has been obtained for such purchases. 12.

RAILWAY EMPLOYEES CONTRIBUTORY HEALTH SCHEME:

i) It should be seen that proper records are maintained and the prescribed charges are collected correctly.

ii) The amount collected are properly remitted to Railways revenue. The Money Receipt Book should be verified to see that the continuity of the serial number is maintained. Acknowledgements for the amount remitted, should be test checked with the amounts collected. iii) The membership is renewed every year, No retired employee is allowed for treatment unless they have become the members and charges at prescribed rates are paid correctly every year.

iv) In case diet is provided to the retired employees under RECHS, the diet charges are collected in advance or before the patient is being discharged. 13.

REIMBURSEMENT OF MEDICAL CLAIMS:

i) All claims for reimbursement of Medical claims processed in the CMD’s/ Const’s Office are properly justified and certified by the Medical Units concerned. ii) Relevant rules are correctly followed while processing such cases before the same being sent to Accounts Office for payment. 14.

In the case of inspection of Health Units, the inspecting official should check whether test check at prescribed schedules on Plat Form stalls (catering items) are done by the Health 165


15.

Inspector/ADMO and necessary records maintained at their end.

Apart from the above checks, the following aspects should also be seen during inspection:

i) Privilege passes, EDP, Medical Passes issued to the patients.

ii) Staff quarters.

iii) Leave records.

iv) Overtime/NDA records

v) Scooter/Cycle stand contract if any.

vi) Deputation of doctor on study leave.

vii) Honorarium/Fee if any received by doctors etc. 11. A)

1.

2.

166

INSPECTION OF EDUCATIONAL INSTITUTIONS RAILWAY SCHOOLS: -

The Head Quarters as well as Divisional Accounts Office should undertake as part of their inspection programme, the inspection of Railway Degree College (Hqrs. only) Junior colleges and schools. The following items should be seen especially during inspection of accounts of the Railway Schools in addition to the items common to all the offices. Similar checks should also be exercised in respect of NonRailway schools if they are in receipt of Grantsinaid from the Railway Administration. CASH BOOK:

The maintenance of Cash Book, Receipts and Payments should be checked. The Cash Book should be closed daily and attested by the Principal or Head Master i.e. Head of the Institution. The Cash Book should have been reconciled with Bank Pass Book and there should not be any variation. SPECIAL FEE AND TUITION FEE:


Inspection Section

i) Special fee collected from the students are as per the instructions issued by the Railway administration.

ii) In case tuition fees are collected from the students, the tuition fee collected from the students should be remitted to Railways account. The connected Money Receipts are to be checked, for the amount remitted. iii) Tuition Fee and Special Fee collected should agree with the number of students in the college/schools excluding those students who are exempted from collecting such fees. 3.

SCHOLAR SHIP:

Scholar ships received from State Governments, for SC/ST, BC students should be verified to ensure that they are properly accounted and distributed to all the eligible students.

4.

5.

6.

SPECIAL FEE:

The special fee collected from the students are authorised to retain by the college/schools and the expenditure should be spent in accordance with the instructions issued by the DEO (District Educational Authorities) or by the University in the case of Railway Colleges. The amounts spent for various activities viz., Sports, Lab, Parents-Teachers Association etc. should be checked to ensure that separate accounts are maintained, and the expenditure agree with the vouchers for each transaction. GRANTSINAID:

In the case of Railway Colleges, it should be seen that the ‘UGC’ Grant received has been properly utilised for the specific activity for which it was granted. The records exclusively maintained for this purpose should be checked. MISC. CASH :

As the Railway schools and colleges are maintained by the Railway Administration, the schools premises should not be utilised for any other purposes unless it is authorised. Licence 167


7. 8.

9.

10. B)

1.

fee collected if any, for hiring the premises should be remitted to Railways. Such instances if any should be checked. UTILISATION OF FUNDS:

Apart from special fee collected from the students, Educational institutions are sanctioned funds from Railway Budget, funds from Women’s Organization etc. The inspecting official should check the utilization of such funds, and the accounts.

The performance of the school/college with reference to the students strength and pass percentage in different examinations conducted during the academic year should be checked in order to ensure that the infrastructure facilities provided are properly utilised to achieve the intended benefits. REGISTER OF LIBRARY BOOKS:

It should be seen that the register is posted uptodate and the receipts have been correctly accounted for and proper system is adopted for issue of Books to students. Necessary recovery has been made from the students concerned in the event of loss of Books issued to them.

Tools and Plant Registers should be reviewed to ensure that all items are accounted for and periodical stockverification carried out. INSPECTION OF TRAINING CENTERS:

As a part of the inspection programme, the Headquarters and Divisional accounts office should include Training institutions in their annual programmes. All the training institutions should be periodically inspected at least once in three years (in case of small institutions) The following items should be specially checked during inspection of accounts in addition to the items common to all the units. TRAINING PROGRAMME:

i) Training facilities and courses conducted during the year should be reviewed to see that the training 168

Inspection Section

facilities provided by the Railway Administration have been properly utilised.

ii) The number of courses conducted and the attendance of staff to various courses should be checked. If the staff attended to each course is less, the matter should be reported to the Head of the Department and Personnel Branch. 2.

TEACHING ALLOWANCE:

The number of instructors sanctioned and actual number of instructors available should be checked. Teaching allowance to the instructors is admissible only to those Training Centres as specified by Railway Board. It should be seen that Teaching allowance is paid only to those instructors who have been screened by the CPO and paid only to those who were on deputation for a period not exceeding five years.

3.

4.

5.

CATERING FACILITIES:

The facilities provided by the Railway administration to the trainees for messing arrangements should be checked. TOOLS AND PLANT:

Tools and Plant Register should be reviewed for proper accountal of all items including items provided in the Hostel to the Trainees. Whether periodical stock verification conducted or not should be checked. LIBRARY BOOKS;


i) Whether Register is maintained for receipts of all Books with complete details.

ii) Issues of Books to the Trainees should have proper acknowledgements. iii) In the event of non-return of books/loss of books the cost of the books should be recovered from the trainees concerned. 6.

The accounts of uniform, vehicles, passes should also be checked during inspection. 169


The results of statutory audit are communicated through: i) Specific reports of more important and serious irregularities discovered in the course of Audit of Accounts, Departmental offices and Station Records. ii) Audit Notes detailing minor irregularities discovered in the course of Audit of Accounts office records.

iii) Inspection Reports showing the results of Audit of the initial records of Executive offices. (Para 801AI) Communication received from Audit relating to the above will be in the form of Audit Notes, Inspection Reports, Special letters and Draft paras. Audit Notes and Inspection Reports will be in two parts. i) Part IAudit Notes will detail important irregularities noticed by the Audit during the monthly test audit of the Accounts office. ii) Part II Audit Notes will cover minor irregularities.

iii) Part I Inspection Report will show major irregularities noticed by the Audit while inspecting the initial records of Executive offices and Part II will show other cases.

iv) Special letters of specific Report may deal with important procedural defects noticed during the monthly audit, which the Audit may desire it to be brought through specific reports to be sent to the Executive Officer. v) Any case that the Audit may consider to involve major financial irregularities or procedural defects resulting in infructuous expenditure may be taken up in the form of Draft Paras.

170

The Principal Director of Audit in Duplicate issues audit Notes, Audit Inspection Reports and Special letters in duplicate. In the case of Inspection Reports one copy of the same should be sent to the Executive officer whose office was inspected for his remarks. The Accounts officer will examine the reports

Inspection Section

12.

13.

and furnish remarks, which should be scrutinised carefully, and if further clarifications are necessary, this should be called for from the Executive officer before issue of final reply to Audit Officer. If the Audit Officer issues further comments on remarks already furnished, this should be dealt with in the Accounts Office independently where possible; if not, a reference should be made to the Executive Officer to obtain the clarification sought for by the Audit Officer. DISAGREEMENT WITH AUDIT:

If requested by the latter, make a reference to the General Manager. However, when the question is one of Accounts Procedure, the matter should be referred to the Finance Directorate of the Railway Board. The General Manager will be requested to obtain orders of Railway Board if the matter is beyond his competence to decide. While making such references the Accounts Officer should send a verbatim copy of the Audit objection and statement of his own views. Audit Notes should be processed in the Accounts Office and reply issued. Replies to Part I Reports, specific reports and important irregularities should be sent to the Audit Officer as soon as possible. No formal reply to Audit Notes and Inspection Reports Part II is required to be sent to the Audit. The disposal of such Audit notes and Inspection Reports should be made available to the Director of Audit whenever required. TIMELINE FOR REPLY TO AUDIT REFERRENCE :

It is of utmost importance that all audit objections in one or the other form mentioned in Para 2 above should be given immediate attention. Railway Board have stressed the need for expeditious disposal of all audit objections and directed that there may not be any outstanding reports of over 3 years old. By ensuring that even at the initial stages Audit objections are dealt with promptly completely and at adequate level, the need for Audit Officer taking up the same subject in 171


the Principal Officer’s Meeting and at Railway board’s level could be reduced. In order to ensure their quick disposal, a proper record should be maintained in the Accounts Office. The Register, wherein should be entered all the Audit Notes, Inspection Reports and Special letters with details of action taken, should be periodically reviewed to see whether final reply has been issued in individual cases. If the action is pending with the Executive Officer, the Officer concerned should be contacted or addressed to furnish immediate reply. If the action is pending with the Accounts Office, the reports should be put up to the Accounts Officer with remarks for delay in the issue of reply. If no finality is reached even after correspondence, the Accounts Officer should arrange for a tripartite meeting between Accounts, Audit and the Executive Officer concerned after fixing the date in consultation with the Executive Officer concerned and Audit Officer. The Audit Officer’s acceptance of the remarks offered during the discussion should be recorded in the minutes of the meeting and where further clarifications are called for, these should be obtained from the Executives and furnished to the Audit Officer.

14.

172

Executive Officer should also maintain a register showing the action taken on each audit objection. This register should be reviewed by the Executive Officer also to ensure that effective actions have been taken for the disposal of all audit objections. The Accounts Inspection staff should specifically examine the effectiveness of the action taken and deficiencies noticed should be suitably taken up. MINIMIZING THE NUMBER OF OBJECTIONS:

The draft inspection report should be discussed with the Executive Officer concerned before making it final. This is known as intra-conference. Such steps should also be adopted in minimizing the number of objections and also reduced unnecessary work. The following steps, therefore, should be taken in this direction.

Inspection Section

i) The Audit Officer should discuss draft Inspection Report and Executive Officer after the inspection is completed. It is known as exit Conference.

ii) As per extent instructions, replies to the Draft Audit Reports i.e. ‘DOS’ should be sent to the Audit Officer within 30 days after the inspection is completed. This will enable the Audit to finalise the reports and to minimize the number of paras. iii) The Executive Officers are expected to verify the facts and in case they are correct and complete they should record their acceptance in writing. If it is otherwise, they should amplify the position to the Audit Officer in writing so that the Audit view may be based on complete facts. iv) In the case of minor objections, the Executive Officer concerned should take remedial action promptly and the fact that such an action is taken should be noted in the minutes of the discussion so that these objections may not appear in the reports.

v) In regard to cases where regularisation by higher sanction is necessary, these should be obtained quickly. In the event of any delay in obtaining the sanction, the Audit may be advised of the position so that they may consider the inclusion of the item in the report. In any case, the requirement of higher sanction should be discussed in the meeting and the matter should be settled.

vi) If the Audit Officer has objected to any payment of recurring nature and if the views are acceptable to the Accounts Officer, he should place the amount under objection, the payment being treated as provisional pending receipt of formal orders from higher authorities or settlement of the objections by the Audit. 173


15.

A copy of the minutes of discussion held between Executive Officer and Accounts Officer should be furnished to the Headquarters office for information. DRAFT PARAS:

All the important cases coming to the notice of Audit which Audit considers to be fit case for incorporation in the C & AG’s Report for Presentation to Parliament will be brought to the notice of Railway administration in the form of Draft Paras.

A procedure has been evolved by the Railway Board according to which before any item is taken as Draft Para, the Principal Director of Audit would generally address, D.O. letters to the Heads of Departments/FA & CAO forwarding a statement pointing out the irregularities noticed and asking for verification of facts and figures. The board for replying to these references has laid down a time limit of four weeks. In case, where the verification of the facts and figures would involve reference to a number of divisions and other authorities and would require more time for verification, the PDA should be addressed to extend the time limit suitably. FA & CAO has to coordinate with PHODs concerned as well as Railway Board for speedy disposal of Draft paras.

This procedure would enable the Heads of Departments/FA & CAO to devote adequate attention to the points raised by the Principal Director of Audit and reduce in a way the number of formal Draft Paras to be issued. It is therefore, important that adequate attention should be paid to such references.

174

Draft Paras are generally on the outcome of earlier audit notes or correspondence from Audit. To deal with these draft paras, Railway Board have laid down procedure. According to which Principal Director Audit will prepare draft paras and addressed to General Manager, sending copies thereof to the Railway Board (EDA) and the DAI (Railways) Copies of the Draft Paras will also be endorsed to the FA & CAO and concerned PHODs. Railway Administration should give their final reply after consultation with Board within a period of 8

Inspection Section

16.

weeks. The reply should be sent to the Board within 5 weeks from the date of receipt of Audit Paragraphs so as to allow time for further enquiry and correspondence within the overall period of 8 weeks within which a final reply has to be sent to the Principal Director of Audit. Keeping the Boards directives in view, these draft paragraphs should be dealt with promptly and comprehensively at the highest level possible. As the General Manager is required to reply to the Draft paras, it is necessary for the PHODs concerned to personally examine every detail concerning draft paras so that replies may be well informed, complete and effective particularly in regard to facts which might have influenced the authorities concerned at the decision making stage. At the Divisional level, the Divisional Railway Manager should nominate a JAG to coordinate the collection of information at the divisional level. It will be the responsibility of the Divisional Officer primarily concerned with the Para to verify the facts and figures furnished therein. The Senior Divisional Finance Manager/DFM should also give highest priority in regard to verification of factual information pertaining to Draft paragraphs.

POINTS TO BE NOTED WHILE DEALING WITH DRAFT PARA:While dealing with the Draft Paras, the following points should be borne in mind and complied with by all concerned;

i) It should be ensured that all important and pertinent facts having a direct bearing on the case, and the extenuating circumstances, if any, which if not taken cognisance of may lead to incorrect appreciation of the case, are brought out in the supplementary remarks to the Draft Paras.

ii) While pointing out the inaccuracy of the figures, the reasons as to why the figures are considered incorrect and what in the opinion of the Administration should be the correct figures, should be clearly furnished. 175


As to the facts also, a similar procedure should be followed, furnishing the orders, instructions, etc., if any issued on the subject.

iii) Procedural lapse pointed out should be verified and, if approved, the correct procedure introduced. The responsibility for the lapses pointed out should be fixed and action taken to prevent recurrence indicated. Progress made regarding disciplinary action, if any taken should be indicated. The circumstances, in which deviations/lapses were allowed to occur, should be specially examined.

iv) Where recoveries or overpayments are the subject matter for comment, action to recover the amount and the recoveries made so far should be furnished. v) It is also necessary to examine, where applicable, the financial implications, if the Audit contention is conceded. Where more than one alternative is possible, the relative economics should be gone into carefully.

vi) Where necessary, the points should be discussed with the Local Audit Officer, along with the Accounts Officer. vii) At every stage, the associated Finance/Accounts Officer should be consulted and the Draft Paras, scrutinised conjointly, the comments, etc., duly vetted by the Associated Accounts Officer with reference to all available records. viii) In order to bring down the outstanding Draft Paras and furnish satisfactory remarks to Principal Director of Audit, frequent review meetings with the concerned HODs should be arranged. 17.

THE FOLLOWING TIMETABLE SHOULD BE OBSERVED FOR DISPOSAL OF AUDIT PARAS.

i) Despatch of the copies of paras by the FA & CAO to all HODs etc. 2days on receipt in Accounts Office. 176

Inspection Section

ii) Verification of facts and figures by the Executive Officer primarily concerned with Para and submission of remarks to FA & CAO = 3 weeks. iii) Associate Accounts vetting and scrutinize the remarks of Executive = 1 week. iv) Scrutiny and to obtain GM’s approval = 1 week.

v) Finalisation of the reply and to obtain Railway Board’s approval and forwarding to Railway Administration remarks to Principal Director of Audit = 3 weeks.

vi) Discussion with PDA including correspondence, if any should be completed within the over all period of 8 weeks.

18.

19.

As the overall limit of 8 weeks cannot, at any rate, be exceeded, it is necessary that the queries from Railway Board should be attended to on ‘TOP PRIORITY’ basis. ACCOUNTS INSPECTION REPORTS: -

The action required to be taken after the inspection is over has been indicated. After the discussion of the preliminary report with the Head of Office is completed, the inspection report should be prepared embodying all irregularities and objection for which no satisfactory explanations were forthcoming during the discussion. The inspection report should be issued finally as soon as possible after the return of the Inspection party from the inspection. It should be noted that issue of the report in respect of Main office, which was inspected, should not be delayed just because the inspection of subordinate is not completed. HOW INSPECTION REPORT IS PREPARED:

The reports should be prepared in two parts i.e., Part I and Part II. These should again be subdivided into nonPersonnel and Personnel. Particular care should be taken about the language and tone of the report. All objections should be stated in simple and polite terms. 177


PartI: This should contain points of major importance only which may be held to include objections involving recurring over payments due to wrong fixation of pay, grant of leave and T.A. under a wrong set of rules etc. and any other irregularities which are required to be regularised under competent sanction. The remarks for individual paras should be called for from the Head of the Office Inspected.

Part II: All other items, which have not figured in Part I should be included in Part II. The disposal of paras in Part II may be left to the Head of Office inspected. He should however, give suitable remarks as to the action taken by him against each item in the report before filing it. The Accounts Officer should during his next inspection, review the remarks recorded on the Executive officer’s copy of the Part II of the report and satisfy that suitable action has been taken on the points raised therein.

178

Part I of the Inspection Report should be prepared in Triplicate. One copy will be retained in the Accounts Office as Office copy and Two copies sent to the immediate superior of the Officer whose office was inspected, with a request that one copy may be forwarded to the Head of the Office Inspected for remarks. In the case of Divisional Office, all Part I Inspection Reports should be sent to the divisional officers personally. The officer whose office was inspected should return one copy with as complete replies as possible through his immediate superior to the Inspecting Officer. Before forwarding the replies, the immediate superior should satisfy that they are correct and complete and where necessary should have them amended or amplified to avoid further correspondence. The remarks so received should be scrutinised in the Accounts Office and further action that may be necessary taken under the orders of the Accounts Officer. If any cases of serious irregularities come to light in the disposal of Part I of the Inspection Reports the details thereof should be entered in the “Register of Serious Irregularities” and the progress of their disposal carefully watched.

Inspection Section

Part II of the Inspection Report should be made out in duplicate. One copy should be retained as office copy and other copy sent direct to the officerincharge of the office inspected with the request that the irregularities pointed therein may be regularised and the recurrence of such irregularities guarded against. Any items of objection, which has a bearing on the work of the Accounts office, should be noted down and pursued with the sections concerned.

20.

Procedure for Test-Check:

The Test check should, apart from verification and thorough examination of facts and figures embodied in various documents brought under test check, be directed to an intelligent scrutiny to find out whether the clerk(s) understand their duties and rules governing them and do the work allotted to them diligently and whether there is any tendency to do the work casually. Test check should particularly be conducted at least once in a month by SO and all officers. The test checks should not be of routine nature rather they should focus on system improvement, procedural lacuna and lapses. The underlying idea should be efficient disposal without any violation of rules and procedures. The checks should also reflect the updated skills of the officer.

- [PARA 803 A1]

21.

S NO.

1

Recording of results of Test- Check:-


Item of work test checked 2



Name of the SO/ SSO (A) who had test checked the item 5

Result of Test check 6


The test check register should be opened separately by each official; the test check is required to be made in accordance with these orders. The entries made in the register 179


should contain adequate particulars so as to facilitate the identification of the entry/voucher subjected to test check and entry/voucher should be endorsed “Test checked” under the dated initial of the official conducting the test check.

The exact nature of the discrepancy noticed should be briefly indicated in the appropriate column of the test check register. If the discrepancy calls for a lengthy note, the same should be given as a separate note for further disposal being done on the connected file(s) and a cross reference to this note should be recorded in the relevant column of the Test Check Register.

22. 23.

The observations as a result of the test check should be clearly indicative of the appraisal by the checking authority of the quality of performance of the clerks whose work came up for test check. Test- Check of registers:

Another important item of test check is the inspection of different registers by the Gazetted Officers. The intervals at which different registers maintained in Accounts Offices should be put up for inspection by Officers. Periodicity of submission of Test- Check of register to Officers:

Every test checks register should be provided with an inspection sheet below the front page indicating the month of test check, date on which put up and the date reviewed by the Officer concerned. The test check registers of Section Officers and Senior Section Officers should be put up to the Branch Officer on the 10th of each month indicating the test check done on the work of clerk in the preceding month for review and orders, where necessary, by the Branch Officers.

180

Chapter 6

STOCK VERIFICATION

The object of the stock verification by the Accounts department is to ensure that the said material accord with the description and specification and the balances appearing in the books and excess or deficiency, if any, noticed on such verification are properly investigated and accounted for. It is to ensure that book balance and ground balance tallies and they are properly maintained. During the verification of any unit and stock verifier has to ensure that •

•

•

•

•

•

• •

Every item is verified after proper counting, weighment, and measurement in presence of responsible representative, subordinate or ward keeper or stock holder himself.

No items and tally books are left without verification.

No unaccounted stocks are lying at Depot, ward and office of the subordinates. In case unaccounted stock is found, reason has been recorded by the stock holder.

Weighing machine used for weighment, is being checked before verification. Proper arrangement exists for the safe custody of materials.

Suitable measures exist against loss due to pilferage, fire and deterioration.

The godown floors are cemented and, in cases where such floorings do not exist, the stacking is not done on the ground but on platforms made of unserviceable rails and sleepers. Is the stacking of heavy materials done in racks and lines? 181


•

Are tools and petty items of consumable stores kept in lock and key.

•

A proper locking arrangement exists for the Depot.

•

•

•

•

2)

Materials of every day use such as soap, matches, towels, dusters etc. are kept under lock and key. Fire extinguishers and other fire arrangements are handy in the depots.

protection

Inflammable stores such as petrol and oil lubricants (POL)are not kept in close proximity to consumable items such as waste cotton, sleepers, wooden fittings etc. Whether material is being issued strictly on “First in First out basis” or not.

PROCEDURE FOR VERIFICATION

While verification of store following steps are to be followed:

ii.

iii.

iv.

vi.

i.

v.

182

Ensure that items for which verification is to be done, is presented in full quantity under certification by the custodian with nothing left to be produced.

Complete verification of ground balance and get it certified by witnessing official before analysis of book balances is undertaken.

Ensure that the labour staff allotted for verification is sufficient and that the scale, crane and other facilities are available for verification, wherever necessary. Check up the scale to ensure that it is in proper working condition.

Ensure that stores are kept under proper bins and racks with duly painted P.L. Nos. on them to facilitate easy identification of stores in stock.

Have a complete survey of the ward to ensure that the stores taken out of the bins/racks and disturbed stacks are put back in their proper places.

Stock Verification

vii.

Ensure that a stores representative is available to witness the stock verification.

ix.

Ensure that all the receipt and issues postings are upto date on the date of verification.

viii. x.

Obtain all bin cards/tally cards of the period to be verified from the ward on the date of verification.

Ensure that as regards the computerized items, the receipt and issue vouchers relating to the date of verification are not posted on the bin cards till the verification results are posted. It should also be seen that the bin card balance is tallying with Transaction Register (TR) of the previous month.

2.1)

BASIS OF VERIFICATION:

The verification of stores either held in a stores Depot or with executive subordinate office should invariably be conducted with reference to the annual programme approved by the FA&CAO. The verification of units not contemplated in the annual programme and also special verification of stores with the custodian at the request of the controlling officer may also be carried out with the prior approval of the FA&CAO provided sufficient man-days are available to accommodate such special checks and the regular annual programme is not affected.

3)

Duties of the Inspectors of Stores Accounts (S-3205 to 3208)

Ordinarily the duties of ISAs on verification work are of supervisory in nature over the functioning of ASV. However in special circumstances, stock verification may also be entrusted to them to bring qualitative improvements. Apart from this ISAs should undertake the following activities: i)

Collect information regarding formation of new units/ new PLs from all the departments before preparing the annual Stock Verification Programme. 183


ii)

iii)

iv)

v)

vi) Seize any document/record initial books stockholder required for further investigations.

viii)

ix)

x)

184

vii)

Prepare Programme of verification work for each financial year for stores Depots/other units well before commencement of the financial year and submit the same to FA&CAO for approval.

Ensure that realistic man days are budgeted for verification of each and every so that wastage of man-hours due to non-availability of helping staff is minimized. Distribute the Programme approved for the financial year in such a way that the Programme will be completed as per schedule.

ISA have to check related documents, records and measurement books of store at store depots, offices stations and workshops. of

Carry out periodical test check of stock verifiers as authorized by the Stores Accounts Officers to ensure quality of verification. Prepare and submit monthly progress report both in respect of verification work done (May days) and disposal of stock sheets to the Hqrs. Office by ISAs at Depots/IS divisions. Conduct surprise check /Intensive checks/special checks with special attention to unearthing serious irregularities at places where the transactions are heavy and make out reports of irregularities thereon and follow up until appropriate action is taken up by the concerned authorities.

Attend to scrutiny and disposal of Stock Sheets / Narrative Reports by close monitoring and investigate into heavy discrepancies revealed either in stock verification or as a result of review of accounts. CoCoordinating ISA of the verification unit must ensure optimal output of ISAs/ASVs working with him.

Stock Verification

xi)

xii)

xiii)

Weekly Diaries Field Book

Record Keeping should be proper , safe and secure.

Apart from the above duties the following role of ISA is also mentioned below:(I)

REVIEWS /OVERHAULING OF ACCOUNTS

The most important role of ISA which he has to play in controlling of inventory and review of overhauling of accounts. In case the stock verification programmes by ASVs exceeds 20 days the overhauling of accounts will be done by ISAs to see:-

a)

b) c)

d) e)

f) g)

h) i) j)

Check of issues as per annual consumptions in relation with demand and stocking. Reasons for over stocking if any.

Reasons for an item becoming non moving. A detailed check of idling assets. Review of surplus stores.

Review of item being purchased regularly on non stock basis. Review of imprest stores to check the cases of revision as per trend of consumption. Review of local purchases.

Review of issues and corresponding release of items as per sanction estimate in case of section work and also in cases of other work chargeable to revenue. Review of accounts of stores delivery vans.

In addition to it ISAs to carry out complete review on emergency purchases, AAC, pending dues in relation to stock position and also he has to see the issues as first in first out (FIFO) system to avoid any deterioration of store. He should also have a proper check on system of proper storing of items of common use and fire prone. 185


(II)

CAPITAL STORES

Reviving section check of store depot are to be carried out by ISA each month to see that:-

a)

There is no item left unconnected.

d)

Regular clearance of stores in transit , depot transfers of purchase.

b)

c)

e)

f)

h)

g)

i)

Accountal is done regularly.

There is no item where documents have been received but material not received. Regular clearance of rejected stores within time and recovery of advance payment and other dues as inspection charges, storing and supervision charges if any, if leviable. Check on system of inspection to see in cases of delay in accountal on account of late inspections. All pending claim cases to find out its proper reason.

The system of station clearance check on demurrage and wharfage charges with entries made in progress register of depot.

The system of storing of materials and regular issues towards after speedy accountal.

(III) SV SHEETS AND NARRATIVE REPORTS

ISAs are responsible for proper dealing with SV sheets and narrative reports, continuous chasing with divisional officers /stores officers and store holders is also required to be done. more care has to be taken in dealing with SV sheets and Narrative reports which involved in:-

A.

B.

C.

186

Theft cases.

Court cases.

Claim cases.

Stock Verification

(IV)

(V)

SURPRISE CHECK It is a vital role of ISA to carry out surprise check in consultation with Accounts officer at stores depot ,stores holder on shed, workshops , stations, offices etc. For carrying out surprise check no advance information is given and before carrying out the surprise check items may be selected and detailed examination of system of accountal issues, storing, disposal, together with ground balance to check net deficiencies of the item is to be done. ISA should carry out surprise check on deliveries being witness by ASV and a report should be submitted to Accounts Officer for the work done. Lot Inspection The scrap material after declared as surplus by store depots and before auction each lot is required to be inspected by ISA as without which no material is generally allowed to be sold. ISA should carry out lot inspection in detailsand with minute observations. Mainly following points are to be examined: i) Proper sanction. ii) Proper accountal. iii) Proper description. iv) Proper location. v) Proper quantity. vi) Proper approach.

In case of lot inspection of condemned rolling stock like wagons, coaches and locos the aspect of restricted items is to be seen very carefully while assessing the approximate auctionable weight of the item. Lot inspection of scrap rails of different rail section is done by taking measurement of each rails as mentioned in sanctioned SS-11 and sectional weight of lot of rails is arrived at `with 5 % provision are allowed for wear and tear allowed in case of scrap rails other than 115lb/60 kg. and 52 kg. The delivery of rails other than stores depots are given on sectional weightment basis. 187


(VI)

188

AUCTION SALE Another important role of ISA is witnessing auction sale. Before start of auction sale ISA should check the auction catalogue very carefully. It should be ensued that all lots put up for auction sale have been inspected by respective ISA of the unit and have been declared ok for sale. If lots have been declared as withdrawn by ISA it is to be seen that all such lots have been withdrawn from auction sale. ISA should carry out a check on entry fees deposited by the bidders in the acceptable form and each bidder have been provided with a token thereof . During the course of auction sale ISA should remain more vigilant and should watch that:(a) All bidders have proper token in support of entry fees. (b) The system of auction adopted by auctioneer is as per rule. (c) The bids are being obtained lot wise and unnecessarily combined bids of two or more lots are not taken without being bid rejected earlier. (d) Immediately after the highest bid is accepted by the depot officer auctioneer should declare the name of purchaser and he should issue a slip showing lot no. ,quantity, rate ,name of the purchaser etc. if any change or addition has been done by auctioneer the matter should be brought to the notice of supervision officer. (e) During the course of auction ISA should have closed watch on ring formation among the bidders and if any such event is noticed he should bring it to the notice of depot officer and accounts officer concerned. (f) The bids are not accepted abnormally lower than last auction rates, if such occurrence is noticed the matter should be brought to the notice of accounts officer who will further check from list of reserve price supplied by depot officer after auction.

Stock Verification

After the auction sale is over ISA is required to do the following work:

a)

b)

d)

Check bid sheets, bid auction catalogue and special announcements.

Check of proper deposition of EMD with Railway Account . c)

Check of SA-6 forms.

Preparation of auction sale report showing the details of auction held.

(VII) ACCOUNTAL OF SALE ISSUE NOTES BY ISA

The main reasons for lying heavy credit balances in sale suspense due to non accountal of sale issue notes. For minimizing of such balances, ISA should have a manuscript register with them showing the details of sold lots delivered. In this register a column should be made showing the date of continuity no. of sale issue note which will help the administration in minimizing credit balances.

(VIII) SHOP FLOOR INVENTORY

In the major workshops and sheds the aspect of shop floor inventory is of very important nature. Shop floor inventory highlights the following facts a)

b)

d)

c)

e)

Over stocking of stock and non stock items on shop floor thus blocking the railway revenue on unproductive investments. Excess drawal of materials than MUF fixed up.

Trend of consumption in relation with drawal and out put. Disposal of scrap or released items. Wrong drawal of materials.

In addition ISA is supposed to carry out check on idling machines make and buy comparison in case of shop manufactured items including revision of rates , which will 189


help the administration in field of better managerial control 3.1)

on inventories.

Duties of Account Stock Verifier. Stock verifiers are required to verify the ground balance by actual counting/weight or measurement as the case may be of the following: a) Stores in the custody of stores department. b) Imprest or surplus materials in the custody of subordinates on line. c) Material-at-site of the work. d) Charged off materials in the workshops, sheds and elsewhere generally as far as they are susceptible to check. e) Timber in the Carriage Workshops. f) Consumables g) Tools and plant, dead stock in the custody of subordinates and offices of all departments of the Railway. h) Fixtures and fittings of electrical items at various service Buildings. i) Surprise and special verification of stores as per instruction of the administration. In addition to these, ASV’s are assigned the duties of witnessing the deliveries of scrap stores sold in Auction etc. The results of the stock verification are compared with the ledgers and the deficiencies, if any are brought out in the SV sheet. The major irregularities, i.e. procedural lapses, wrong classification, bad condition of storage, damages, etc. are brought out in the form of Narrative Report. One copy of SV sheet / Narrative Report is submitted by ASV to the stockholder and his controlling officer with a request to offer the remark/verification on the deficiencies. Similarly one copy is submitted to SR DFM along with the completion certificate and completion report. 190

Stock Verification

4)

ACCOUNTAL AND DISPOSAL OF SCRAP MATERIAL

4.1)

The materials of different kinds which are no longer required for the purpose for which they were procured by consuming department on Railways are called scrap items.

1.

Railway workshops.

4.

Melting scrap from various sources.

4.2)

Sources of arising of scrap 2. 3. 5.

P. Way scrap.

Condemned Rolling stock.

Misc. scraps from various stores holders.

Each item of scrap sent to the nominated stores depot will be supported with relevant DS-8 Note showing PL NO., Name of the depot , Date, description and quantity of material together with the remarks of condemnation recorded on DS-8 note and one copy is returned to sender for his records. In stores depot each DS-8 note is accounted for by giving continuity number.

ISA’s during their visit to stores depot. should check the proper accountal of DS-8 Note. The ferrous scraps received in depots are verified by ISA/ASV and therefore it has been exempted from stock verification. Hence there should not be any item left unaccounted. So far as P. Way scrap is concerned, during the course of lot inspection to be close by ISA, it should be ensured that proper DS-8 Notes exists. Disposal of Scrap

Each kind of stores duly surveyed by survey committees(other than those items exempted from survey) and sanctioned by competent authority including condemned rolling stock where BUOs have been received are put up for auction sale. After auction sale SA6 is prepared by stores depot with the help of particulars mentioned by auctioneer in Bid sheet. The purchaser will deposit Earnest Money to the auctioneer immediately after the acceptance of his Bid and turns up to auctioneer by depositing balance amount and VAT. The 191


5)

auctioneer issues D.O. and production of DO to auctioning officer a letter for delivery is issued. The delivery is given by stores holder in the presence of ASV and a representative of RPF. Sale issue notes are prepared except in case of rolling stock and heavy machineries where accountal is with depot officer concerned and thus disposal of scrap is done. CONTROL AND SUPERVISION

5.1)

The ISAs and ASVs attached to units are administratively controlled and supervised by; the concerned SR.DFM. However, they are under professional control of FA&CAO / Stores.

i)

Voucher collection.

iv)

Preparation of stock verification sheets duly comparing the inventory summary (ground balance) with the verified ledger balances.

Main steps of Verification ii)

iii)

Physical verification.

Voucher check in respect of receipts and issues and checking of balancing errors.

v)

The Stores, whether in a Stores Depot or with a department should be verified by Accounts Stock Verifiers as per the following periodicity:

5.2)

Narrative report on procedural irregularities.

Frequency of Verification

(3310-S)

SR. No. 1. 2. 3.

192

Nature of Stores Materials –at-site of works

Stores with Imprest Holders All tools and plants

Periodicity Verification

of

Once in a year Once in two years Once years

in

three

Stock Verification

4.

4.1

4.2

4.3

4.4 5. 6. 7. 8.

All materials in a depot whose accounting is brought under computerization are verified As under :

Category ‘A’ Items: All items having an annual usage value of Rs. 35.25 Lakhs

Category ‘B’ Items: All items having an annual usage value of Rs.4.8 Lakhs and above, but below Rs. 35.25 Lakhs Category ‘C’ Items: All items having an annual usage value below Rs.4.8 Lakhs

Category ‘D’ Items: All items that have had no issues for twelve months and over

once in months.

six

Once in a year

Once in two years

Once in two years

Provisions in Catering Department, subsidized hostels and hospitals

Once in months

Dead stock lien T&P items, equipments, etc. pertaining to Hospital/Running Room

Once years

in

three

Once years

in

three

The T&P items and equipments supplied to catering department, Subsidized hostels etc. Computer equipments and Hindi Books

four

Once in a year

An annual verification programme is prepared sensitivity analysis and based on the above provisions after receipt of sanctioned to this program from FA&CAO, Sr ISA (Coordination) will distribute the program stockholder wise between the ASV’s. ASV’s in turn will verify the physical balances as compared with the ledgers. The routine physical verification of the stock comprises of: (I) (II)

Imprest / surplus material in the custody of subordinate on line. Material at site of work.

193


(III) Fuel, coal, HSD oil with loco (Optg and Mech Department)

(IV)

(V)

(VI)

Engg. Plants reserve. Dead stock.

Tools and plants.

(VII) K-Oil at stations.

(VIII) Voucher check. (Receipt and issue)

In the office of SR. DFM the details of SV sheets / Narrative Reports are entered in register no 3261/S wherein full details such as year, stockholder, SV sheet number, Narrative Report number, date, deficiencies, etc. and their day-to-day progress is watched by SR ISA (co-ordination). Theremarks/replies of SV sheets / Narrative Reports received from executives will be scrutinize by ISA and will be put up to SR DFM for closure, if acceptable. Otherwise reminder / rejoinder will be issued for further clarification.

6)

Outstanding SV sheets / Narrative Reports to end of the month will be brought out in a statement department wise and year wise, which is the part of the document submitted to HQ. in the monthly progress report. Similarly the performances of the ISA’s during the month i.e. lot inspection; test check of ASV’s special checks, handing over of scrap, etc will be submitted to HQ. Monthly progress report and monthly performance report is submitted to HQ before 5th of the following month through SR DFM. ESTIMATING ANNUAL MAN DAYS REQUIREMENT

Man days should be estimated for a year taking into account frequency of verification indicated in the preceding Para and man-day/hours required per item depending upon its average balance.

194

According to the above processor annual stock verification program of the division along with the number of man days required during the year as well as the currency of the post i.e. ISA/ASV’s will be submitted with the approval of Sr.DFM.

Stock Verification

7)

MAIN REASONS FOR DIFFERENCE BETWEEN GROUND AND BOOK BALANCE

Error in posting of receipts and issue vouchers and correct quantity in the ledger.

a)

Calculation/arithmetic errors.

d)

Posting twice in the same bin card/ ledger/ tally book/account

b) c)

e) f)

g)

h) i)

j)

k)

l)

n)

m)

Cross issue/ cross postings Omission of postings

Error in counting, weighing, at the time of certification of receipts and issues Omission in presenting a lot, wrongly kept elsewhere, for verification.

Presenting an item already issued and debited but not dispatched to the party for verification Pilferage or fraud

Defective weighing machines incorrect weighment

Wrong issue of one material for another similar in appearance, which causes shortage of the item actually issued and excess of item wrongly shown as issued in the books.

Not posting an issue already made, due to said issue not being posted or being rejected by computer leading to “shortage”. Similarly, not posting a minus issue or a receipt will show an excess. Loss of materials in the ward for any reason including over lifting will show shortage.

Actually issuing quantity less than shown on an issue note will show an excess.

Items difficult to issue in precise quantities like frequent issues on weight or very large numbers or items issued in running lengths can result in excess or shortage ground balances. 195


8)

EXPLANATION OF DEFICIENCIES

SR. NO

CAUSES OF DEFICIENCY

PARTICULERS TO BE FURNISHED

1

Materials issued but not Accounted for

Party ,voucher no, date, quantity and why issue was not accounted for

2

Due to cross issues

3

Due to weather

4

Material lost in transit

5

Materials verification

6

Loss due to theft, fire etc

7

8

9

196

fluctuation

of

escaping

Material sent for metallurgical test to be done by CMT Material classified under a lower class by the stock verifier due to damage or condition of the material.

Other issues not covered by the above

Relevant entry noticed under other account having similar items, S.V. sheet folio item no brief description and size surplus quantity recorded

Date of last verification and quantity then verified, quantity of material subsequently received and issued & shrinkage allowed Why the papers were not shown to the ASV or for inclusion in the verified balance as per Para 1228-s, what action has since been taken to finalize the loss Particulars of quantity, where it was lying and how it escaped verification. How the material has since been taken to account through department verification Same as for item(4) above ------do----

Quantity verified as surplus under hand second (or scrap) with particulars of AV sheet folio item numbers Suitable remarks depending upon the nature of the case

Stock Verification 10

Causes of deficiency not known

Defect in procedure, party at fault, action taken to avoid similar discrepancy in future including recovery in part or whole of the cost of material found missing due to neglect (Para 3263-E )

Note: Corrective entries are to be made under competent sanction & got verified by ISA before stock sheet can be closed

9)

S r. No 1

2

3 4

5

6 7

EXPLANATIONS FOR EXCESS

Cause of Deficiency Material received but not taken to account Materials subjected to previous fluctuations of weather Due to cross issued Materials issued but not removed by indenter Error verification

Other causes

in

Causes of surplus not known

Particulars to be furnished Party sending the material, voucher number , date, quantity , how accountal was over looked Date and quantity in stock during the verification; quantity of material subsequently received & allowed shrinkage etc.

Relevant entry shown under other similar items Party, voucher number;date;quantity,why was the material not removed, why adjustment D/note was not prepared to write back the issues Description and quantity of the material is correctly included in the verification, reference to folio and item nos,quantity of shortages adjusted against such items. Has the error since been rectified through departmental verification ? Suitable remarks depending upon nature of case Defect in procedure, party at fault; action taken to avoid similar discrepancies in future

Note : In all the cases corrective entries should be made and got certified by ISA with suitable remarks before the stock sheet could be recommended for closed. 197


10) OBSERVATIONS TO BE MADE DURING VERIFICATION OF ENGINEERING DEPARTMENT

a)

b)

d)

c)

e)

f)

g)

STOCK

Non-accountal of materials received from contractors as well as from other sources and unauthorized transfer of materials. Failure to account for released materials fully adopting lesser weights for released materials. Unauthorized issues of material.

Issue transactions not vouched properly. Excess issues of material.

Failure to carry forward closing balances.

Non- admission of stock verification consecutively for several years on various pretexts.

11) OBSERVATIONS TO BE MADE DURING VERIFICATION OF MECH. DEPARTMENT

STOCK

i)

Non-Accountal of costly materials like paints, sheets and other parts and release.

iii)

Mixing up of new items with serviceable/released items and mixing up of serviceable released with unserviceable items to cover deficiencies in stock.

ii)

iv)

vii)

v)

vi)

viii)

ix)

198

x)

Over-drawl of issue transactions by the Shop/Shed to end of financial year. Fictitious issue/receipt transactions. Non-Accountal of Imprest stores.

Non-Accountal of records of diesel oil pump sheds and check of flow meter.

Charging- off of costly oils from ledgers without any vouchers.

Substitution of costly item of woolen blankets with cheap items. Charging Off axle oil/K. oil/cotton wastage periodically without actually issuing the said materials. Non-Accountal of huge quantity of HSD oil.

Stock Verification

12)

MONTHLY PROGRESS REPORT: a) At the end of each month, the Accounts Stock Verifier (ASV) should compile and submit the Monthly Progress Report from the weekly Diaries in the prescribed form duly filling in all the columns provided in the format. b) In carrying out their work as per programme, the accounts stock verifiers should note the frequency of verification of the various categories of stores and should undertake checks only if they are due for verification during the year. If, on visiting the stations, the checks are found not due or a store holder is not existing, etc., the accounts Officer (stores) should be advised accordingly with necessary details and other checks at the station to be taken up if due, or he should proceed to the next station of verification, where minimum loss of time is involved in such journey. c) The ASV may come across in course of their visit, existence of any new stock holder(s) at these stations. The particulars of such stock holders should be noted and advised to the Stores Accounts Officer for necessary action. d) The Stock Verifiers should normally complete the checks allotted to them within the allotted number of days provided for each checks. The number of days allowed for each check is based on the time actual taken in the previous years and also the number of items held by the stock holder as advised by the departmental officer. Wherever the ASV feels that he would not be able to complete a given check within the allotted time and he should submit necessary justification well in advance of the completion of the check, for extension of time, for verification and obtain sanction of the Accounts Officer for exceeding the number of man-days provided for the check. The extension requested for, should normally be on the following lines:199


i)

ii)

iv)

iii)

Increase in the number of items held over the last verification (the number of items actually increased should be clearly indicated). Increase in the stock held over the last verification (the quantities actually Increased should be clearly specified.

Increase in the number of works over the last verification (the increase should be clearly specified).

v)

vii)

e)

f)

Stock verification of pilferable and consumable items like Kerosene, Paints etc., should be taken first before assessment. On visiting a unit for verification, ASV’s should first assess the quantum of work involved, arrangement of materials, availability of labour, availability of weighing facilities, etc. and examine whether the check can be completed within the time allotted and submit justification for extension of man-days wherever considered necessary, on the lines suggested above, well in advance of the expiry of the time allotted for the check in question.

200

vi)

Increase in the length of the section held by the stockholder over the last

Verification. (It should be clearly indicated as to what extent there would be increase in the verification work).

Any other specific cause/causes due to which verification programme is Likely to be affected warranting extension.

When Stock Verifier attends the Hqrs. office on the last day of every month for receiving payment, he should submit the following returns to the ISA concerned without fail for review :I.

Completion documents including Stock sheets and Narrative Reports

Stock Verification

II.

Progress report for the month.

III. Field Book.

IV.

T.A. Journal.

V. Special reports 13)

TEST CHECK:

During the occasion of their test check of the stock verifier’s work ISA should examine the following aspects and comment upon the same in their report.

a)

Attendance of the S.V. and the time of arrival at venue of verification.

c)

Whether the Field Book has been maintained in the required manner.

b) d)

e)

f)

Whether the books have been closed as required herein.

Whether initials of the custodian have been obtained against the relevant item in the Field Book in respect of inventory taken up to date preceding the date of ISA’s test-check.

The stock of selected items verified by the stock verifier on the date preceding the date of test check should be re-verified in the presence of the S.V. and custodian and submit a report in case of disagreement, after updating for subsequent receipts and issues should be submitted. The ISA may also carry out surprise check of one or two key items on such an occasion and scrutinize the accounts maintained for the items so selected from the date of last stock verification to the date of commencement of the surprise verification and submit the stock sheet with special report, if any.

201


14) EXPEDITIOUS FINALISATION OF STOCK SHEET AND RECOVERY LOSSES

A JPO has been issued on WCR on the subject which covers all important aspect for disposal of stock sheets. The JPO is reproduced as under:

•

•

As per board’s order ,stock sheets should invariably be settled within a period of six months.

Delay in finalization of stock sheets results in attendant problems, viz- non availability of records, missing stock sheets, retirement of staff prima facie responsible etc.

14.1 PROCEDURE

14.1.1 Details on Stock Sheets While issuing a stock sheet for any stockholder, the stockholder’s name, designation, and date of superannuation shall be prominently mentioned on top of the stock sheet. 14.1.2 Action by Stockholder The stockholder shall scrutinize the stock sheet immediately on receipt and submit his remarks explaining the shortage/excess, etc to his controlling officer within a period of 45 days.

14.1.3 Action by Controlling Officer The controlling officer would scrutinize the remarks submitted by stockholder and forward the same to his branch officer in divisions and depot officer in sheds and workshops , as the case may be , within 20 days of receipt.

14.1.4 The branch officer/ depot officer will submit it within next 15 days to the concerned accounts officer, after due scrutiny, duly explaining the shortage/excess, etc.

202

14.1.5 However, if remarks furnished by the stockholder explaining the shortage / excess are not found satisfactory by the controlling officer, he will himself

Stock Verification

investigate the matter or through his nominated person and furnish the remarks through his branch officer or the officer in the workshop /shed / construction unit to the account officer concerned within a period of 80 days from the issue of stock sheet indicating the responsibility fixed for shortage/ excess.

14.1.6 In case the stockholder is under orders of transfer, care shall be taken to obtain his remarks for any outstanding stock sheet before relieving him from the post. Proper handing over and taking over of stores between the relieved and the relieving stockholder shall be ensured and stock sheets outstanding shall be specifically mentioned in the handing over/taking over.

14.1.7 Controlling officer shall bring the JPO to the notice of the stockholder at the time of taking over of the charges.

14.1.8 Action in the event of unsatisfactory explanation by the Stockholder In case of shortage pointed out in the stock sheet which could not be explained satisfactorily within specified time, the amount shall be recovered from the stockholder/staff held responsible by the controlling officer after giving him ‘ show cause’ notice and considering his representation. The employee shall be expected to give his reply within a period of 15 days from the issue of notice. The reply, if received in time, shall be expected to give his reply within a period of 15 days from the issue of notice. The reply , if received in time , shall be considered within a overall period of 30 days from the issue of the said ‘ show cause’ notice. If , no reply is , received from the employee within 15 days of time of ‘ show cause’ notice or the reply submitted is not satisfactory than the recovery of amount shall be initiated with the permission of respective branch 203


officer in the division and concerned JAG/SAG officer in other units, the decision to recover the amount will be communicated to the employee by the controlling officer and recovery started.

14.1.9 In Case of unexplained excess, suitable disciplinary action will be initiated.

14.1.11 While seeking supplementary clarifications, the accounts officer shall make endeavour to raise all points of doubt, on the basis of the available information, at the first instance. He shall take care to remove possibility of unnecessary correspondence.

14.1.10 Action by Accounts Officer The accounts officer shall ensure complete scrutiny of the reply so as to be able to either issue ‘ closure advice’ or seek supplementary clarifications within a period of 10 days.

14.1.12 On receipt of a reply by way of clarification on the doubts raised, account officer shall check the same for completeness, accuracy and relevance.

14.1.13 He shall seek any further clarification only once more and only to clarify any further information submitted by way of first clarification.

14.1.14 Therefore, in case the reply and clarification are acceptable as satisfactory, the accounts officer shall issue a ‘recovery advice’ (with the permission of not less than a JAG officer of Accounts department) against the defaulting Stockholder to the branch officer of the stockholder, within 15 days.

14.1.15 Recovery procedure in case of established shortage Action taken against the staff held responsible as well as amount recovered / to recover shall be indicated in the remarks column of the stock sheet.

204

14.1.16 The controlling officer shall advise the amount to be recovered to the concerned pay sheet preparing and passing units which shall ensure recovery from

Stock Verification

salary / other dues of the staff held responsible for loss. The controlling officer shall ensure that the recovery process is started immediately, in no case later than one salary cycle after the receipt of the ‘recovery advice’.

14.1.17 A copy of the deduction list after completion of recovery will also be sent by the concerned personnel officer to concerned accounts officer, who had issued the stock sheet, for his information and further necessary action. 14.1.19 In cases where the controlling officer is also the personnel officer, he shall ensure the same action and recovery in suitable installment will be made.

14.1.20 The concerned bill preparing unit shall maintain a register indicating amount due for recovery, amount recovered and balance recoverable amount.

14.1.21 In case of transfer of the staff, the amount outstanding for recovery if decided, else details of stock sheet will be incorporated in the last pay certificate, and the details of recovery made shall be advised to the parent unit by the new unit which the employee has been transferred.

14.1.22 Any recovery outstanding on account of stock sheets will be included in the list of dues outstanding affiants the employee at the time of his retirement to ensure the recovery being made from the settlement dues.

14.1.23 The account unit which has issued the stock sheet will advise the controlling officer, personnel and accounts officers concerned about the stock sheet outstanding against a stockholder/staff held responsible with the details of unexplained shortages, six (6) months in advance of the superannuation of the stockholder/ staff held responsible so as to ensure expeditious finalization of the stock sheets and recovery of the amount of unexplained shortages from the settlement dues to the employee. 205


15

14.1.24 In case of voluntary retirement /death/ medical unfitness,etc, it shall be responsibility of the controlling officer to advise the personnel and accounts officers concerned for making recovery from the settlement dues , the final settlement shall not be made without ‘ no due certificate’ from all three above.

15.1

THEFT AND CLAIMS CASES

Action expected from the Stockholder in the case of theft/misappropriation/fraud

15.1.1 Those cases in which stock sheets were issued on account of theft/misappropriation / fraud, the stockholder should immediately, after due verification, make out a written report ( FIR) giving facts of incidents , place, date , time of occurrence, quantity and value of railway property stolen /misappropriated , names and suspected persons, if known and lodge an FIR with the concerned GRP/CITY/ LOCAL police station with the help of post in charge/RPF without any delay. One copy of the written report should be given to post Incharge/ RPF having jurisdiction.

206

Post Incharge /RPF will act as bridge between Railway Authority concerned and GRP /CITY police and will assist in getting the case (FIR) registered under specific section of LAW by GRP/CITY police. A copy of the FIR and case reference will be given by the complainant to post incharge/ RPF for record and reference into the case, so that liaison may be maintained by RPF with the concerned GRP/ LOCAL POLICE. Post incharge will co-ordinate with the city police station and will assist the Railway Authority concerned in getting a

Stock Verification

15.2

copy of the FIR with case reference etc. The progress of the case will be collected by the complaint with the assistance from RPF.

15.1.2 The stockholder will submit a copy of the FIR, along with case reference etc, to his controlling officer. Post Incharge / RPF will also submit his report to his Controlling Officer and co-ordinate with the GRP Post / Local Police to obtain progress report etc. 15.1.3 Where a specific case has been lodged under IPC sections / other acts the stockholder controlling officer will ensure the attendance of departmental witness for early finalization from time to time with Post Incharge/ RPF to know about the progress of the case.

15.1.4 The controlling officer of the stockholder will liaise from time to time with SR DSC/RPF having jurisdiction for early finalization of police case in the court of law. Action expected from the Stockholder in the case of claims lodged with the Commercial Department

15.2.1 In case of stock sheets where claim has been lodged with CCM/CCO a copy of the claim case should be marked to the accounts office stock verification cell. 15.2.2 The controlling officer shall pursue the finalization of the case with claims department.

15.2.3 The claims department should finalize these cases within a maximum period of 6 months from date of lodging of claim and advise the controlling officer about finalization of claim case. 207


16)

TIME SCHEDULE FOR DISPOSAL OF STOCK SHEET

16.1

17)

16.2 The calendar based on the the above procedure as given in the annexure should be strictly followed.

17.1

(Authority DYFA&CAO/JBP Letter no, HQ/AC/SV/Policy Dtd. 18-12-2008)

MONITORING OF STOCK SHEETS

17.2

208

All officers/ staff dealing with the stock sheets shall ensure expeditious clearance of the stock sheets within a maximum period of five months and recovery of losses pointed out in the stock sheet is to be ensured.

Status of outstanding stock sheets may be made part of the PCDO to ensure a close watch on a monthly basis. Necessary records shall be maintained for proper documentation. Stock sheets over three month old should be taken up on the agenda of monthly meetings at ADRM/ Unit heads level and target should be fixed for their finalization.

Chapter 7

ESTABLISHMENT SECTION CHECKS TO BE EXERCISED IN VARIOUS ESTABLISHEMENT CLAIMS

The main internal checks summarized in the following paragraphs are illustrative only and not exhaustive.

INTERNAL CHECK OF ESTABLISHMENT CLAIMS

The check exercised by Accounts Officers on the financial transactions of the Railway on behalf of the Railway Administration is called internal check. Unless an exception is specially permitted in any particular case or transaction, whether relating to receipts or expenditure, it should be checked cent percent and no transaction should be brought into account before they have been completely checked. Internal check is carried out both under pre-check and postcheck system, depending on the transactions.

[ 801 A1]

1)

PRELIMINARY CHECK ON THE PAY BILLS

In the computerized pay roll the CO6 which is a mark or receipt of bill in Accounts office, is system generated. The deduction from pay bill like HBA, PF etc. also taken care of by the system and the recoveries are transferred to the ledger of the employees automatically. The most important authentication for passing of bill is CO7 where enfacement is signed by SO / ADFM or other Accounts officer as per delegation. Generally checks are carried out at three stages in the Accounts office i.e., AA, SO and Assistant officer. Section officer is a key stage of scrutiny and he is a supervisor who keeps the policy files with him. He is responsible for application of rules and regulations and is responsible to provide guidance to the subordinate staff. The SO is also responsible for initial test checks and MIS of the section. He is required to keep Accounts 209


officer apprised of the difficulties faced in the section and also status of the work.

Similarly, it is also necessary that the latest amendments in the rules are known to Accounts staff .In case of over payment, Accounts Officer is competent to recover the amount earliest possible even by enforcing the recovery.

The following points should be looked into while exercising preliminary check on pay bills that: -

A.

It is in the prescribed form, in original and all columns are duly completed.

C.

The bill is signed by the officer competent to sign it.

B.

D.

E.

F.

H.

G.

210

The bill is authenticated and the signature on the bill is genuine and is in ink.

It bears a certificate wherever necessary from the responsible officer that the services for which payment is claimed have actually been rendered.

If the proof of the correctness of the claim does not accompany the bill, a certificate is furnished that the claim has been checked with the relevant documents and found correct. The officer submitting the bill attests all corrections / cuttings.

All required documents are duly attached with the bill.

The certificates required under rules are recorded in pay sheets under the signature of a Gazetted Officer e.g.:i) ii)

HRA has not been drawn in respect of those who are on leave, in excess of what is admissible. Certified that the Railway servants for whom HRA has been drawn in this bill have not been provided with any Govt. accommodation.

Establishment Section

iii)

iv)

It is to be ensured that regular pay sheet is accompanied by supporting documents like Memorandum of differences, Absentee statements, Recovery statements etc.

I.

K.

L.

M.

N.

J.

Certified that all adjustments required in respect of pay, allowances, deduction etc. on account of the assumed attendance adopted for the immediately preceding wage period have been carried out in this bill based on actuals for the same period and no items have been left over unadjusted. It is to be seen that funds are made available for Special pay sheets/ Pay orders.

In case of Regular salary whether scale check has been done and scale check statement is enclosed.

It is to be seen that NDA, NHA, Overtime, Mileage etc. claimed in the pay sheet is accompanied with relevant sanctioned statement sanctioned by the competent authority.

It is to be insured that DA, HRA, Transportation allowance claimed in the pay sheet is properly worked out and it is as per the current rules.

It is to be seen that the Washing Allowances, Nursing Allowances, Overtime etc. are claimed by the eligible staff and certificate regarding the same is available on Pay sheets. It is to be ensured that the pay sheets bear necessary certificate as mentioned in Para 1205 to 1212 AI .

1.1) DOCUMENTS THAT SHOULD ACCOMPANY THE SALARY BILLS

The following documents are to be received in Accounts Office along with the salary bills: •

Memorandum of differences (MOD).

211


•

Absentee statements.

•

•

Electrical energy charges statement (once in six months), prepared after adjusting the amount recovered in the preceding Six Months against the amount liable to be recovered on actual consumption basis.

•

•

•

•

Increment statements. (Gazetted Officers)

Rent roll statements for the month of April - Rent variation statements for the subsequent months for quarters occupied by Railway servants.

Statement of PF recovery.

List of workshop debits, stores debits and station debits recoverable through the pay bills.

Deduction sheets showing recoveries made through pay bills on account of:i.

Railway institute fees and subscription.

iii.

Amount due to staff Benefit Fund towards Loans.

ii. iv. v.

Amount due to Railway Co-operative credit Banks/societies. Diet charge & recovery statements.

List of premium due on Life Insurance policies realized from the pay of the insured.

vi. Court attachments.

vii.

viii.

Income tax schedule.

Statement showing the recoveries of various advances.

ix. Allocation statements.

212

x.

xi.

Certified summary of T.A., OT, NDA, and other allowances. Sanction of competent authority where provisional payment is authorized.


xii.

In case an employee is entrusted with custody of cash or stores, a certificate should be furnished to Accounts office along with the settlement bill that they have duly returned all Govt. property in his charge, the fact should be indicated in a note attached to the pay bill. The note should clearly show the particulars of property not yet handed over to the Railway and action taken to their value and the action taken to recover the value of the same.

1.2)

METHOD OF CHECK:

The internal check of pay and allowances charged through pay bills should be conducted on the basis of the information given in the Memorandum of differences (MOD) and the list of absentees, which accompany the bills. If these two statements are not available the check is to be made on the basis of the information given in the bills itself. MOD statement should invariably accompany the pay sheet.

NOTE: (In regard to Group D staff, the submission of Memorandum of Differences may be dispensed with in consultation with the Accounts Officer and the necessary check should be applied in his local inspections.) Submission of Memorandum of Differences in the case of Officers Pay Bill is not necessary.

[1205 A1]

1.3)

EXTENT OF CHECK

A complete check should be applied on:

ii)

i)

The details in the MOD or to the corresponding entries in the Pay bill itself.

The entries under the column “Gross” pay and allowances claimed in the bills, to only those who are affected by the Memorandum of Differences, whether recorded in the Memorandum of differences or in the bills. 213


iii)

The entries in the other columns of the bills.

v)

All calculations and totals

iv)

2)

The admissibility of increments drawn with the statement of increments.

[ 1206- 1212 A1]

Detail procedure for check of various other establishment claims

(2.1) Workman Compensation Claims

Compensation to Railway servants on death or injuries attributable to and due to Railway service shall be admissible under the Workmen’s Compensation Act, 1923. In cases where the Workmen’s Compensation Act is not applicable, the compensation shall be granted under the Railway Services Extra-ordinary Pension Rules, as amended from time to time.

[W.C.ACT 1923]

(2.1.1) I.O.D.PART (A) Procedure for IOD cases/Workmen Compensation Claims:

214

According to W.C.A., 1923 the employee who is injured on duty or died while performing his duty will be entitled for compensation. In Railways certain category of employees who have lost their earning capacity partially /permanently or died while performing their duty, are covered under this Act. The employer i.e. Railway is liable to arrange payment of compensation to the employee or in case of death to the legal heir of the deceased employee. The category of employees treated as workman, is as under: i) ii)

Temp/Casual labor (who attains MRCL status)/Permanent employee (except staff attached in offices). The category of Pay clerk will fall within the definition of workman because they, in the course of their employment, have to do


out door work for disbursement of salary at different points.

iii) Bridge Inspector.

iv)

v)

A)

B)

C)

Vendor /waiter Department.

attached

in

catering

(2.1.2) Types of I.O.D. Cases:

Drivers (loco running staff), Fireman are treated as workman under section (2) (1) (n) (i) of WCA.

D.)

Types of Injured on duty cases and rates of payable amount are as follows: Temporarily partial disablement –

A half of monthly payment of the sum, equivalent to 25 % of the monthly wages of injured workman is payable, for a period of disablement or five years, which ever is shorter. Permanent partial disablement –

Under this category the payment should be made as per injury specified in part II of Schedule I in W.C.A. 1923 on the basis of certificate issued by qualified medical practitioner. Permanent total disablement –

An amount equal to 60% of monthly wages of workman injured multiplied by relevant factor of Schedule IV of WCA 1923. Or Rs.60000/-whichever is more. Death Cases-

An amount equal to 50% of the monthly wages of the deceased workman multiplied by relevant factor of Schedule IV of W.C.A.1923. OR amount of Rs.50000/whichever is more. 215


NOTE: Where the monthly wages of workman is more than Rs.2000/his monthly wages for the purpose of clause (c) and (d) shall be deemed to be Rs.2000/- only. 2.1.3) Conditions for payment under W.C.A. (1923).

Railway is liable to pay compensation to the workman or to his dependant in case of his death or total or partial disablement for period exceeding three days, but employer shall not be liable to pay any compensation in respect of injury (not resulting into death) caused by an accident, which is directly attributable to –

i)

The workman having been under the influence of drinks or drugs at the time of accident.

iii)

The willful removal or disregard by the workman of any safety guard. Or devices provided for the purpose of safety to the workman.

The employer should also be liable to pay compensation if a workman contacts any disease, which has arisen out of and in the course of employment. In the case of workman murdered by fellow workman on premises of the employer during the rest, employer is not liable for compensation to the workman. The compensation claims cases in prescribed forms should be filled up by personnel department in duplicate and is forwarded to Accounts Deptt for scrutiny and verification of the calculated amount prepared as per Schedule I of W.C.A.(1923).The case will be returned to Personal Branch dully concurred for obtaining sanction of competent authority and preparation of Pay Order in favour of Labor Commissioner. The payment of compensation under W.C.A. 1923 should be made promptly within stipulated period of one month other wise in case of any delay the family members of suffered workman can file a suit in the court of law and

ii)

216

The willful disobedience of the workman to an order expressly given or the rules expressly framed for the purpose of securing the safety of workman.


Hon’ble Court may pass orders for penalty of Interest @ 12% or 18 % per annum. The claims are received from the Welfare section of the Personnel department. The claims are verified on the basis of the following details: a)

b)

d)

c)

The various documents furnished like AC message, Eyewitness statement at the Site of accident, Accident Report, Post mortem report, Date of birth certificate etc. are studied in detail. The relevant factor as per Schedule IV of the Act is considered for calculating the compensation. A list of injuries deemed to result in permanent total disablement and permanent partial disablement is provided in Schedule I of the Act.

The last twelve months emoluments are also considered for calculating compensation amount. The maximum amount payable as amended from time to time is also to be considered while making payment as per Para 4 of Chapter 2 of the Act.

2.2) I.O.D. PART B:

2.2.1) EX Gratia Lump Sum Compensation Ministry of Personnel vide their O.M. NO.45/35/97-P & PW(C) dated 11-09-98 has introduced a new scheme of “Payment of Ex-Gratia Lump sum compensation” to the family of Central Govt. civilian employee who dies in harness, in Railway the same was circulated vide RLY BD’s letter no. E (W) 99/CP-1/1 Dated. 5-11-99.These orders shall apply to all cases of death in harness occurring on or after 01-08-1997.The conditions governing the payments of Ex- Gratia lump sum compensation and the guidelines have been indicated in the Annexure of the above O&M. The main condition to be satisfied for the payment of Ex - Gratia Lump sum compensation is that the death of the employee concerned should have occurred in the actual performance of their bonafied duties. As on date the minimum amount of Ex - Gratia lump sum compensation 217


SR No.

Condition of Accident

1

Death occurring due to accident in the course of performance of duty

3

Death occurring due to: -

2

A

to the family of deceased Railway employee who died in performing their bonafied duty under various circumstances are broadly divided into following categories: -

B

Death occurring due to accident in the course of performance of duty attributable to Acts of violence by terrorist or anti social elements etc.

(a) Enemy action in international war or boarder (b)Action against militants, terrorist, Extremists

Minimum Amt. Payable RS. 5 Lakh RS. 5 Lakh

Rs.7.50 Lacs Rs.7.50 Lacs

The proposals of Ex - Gratia lump sum compensation is prepared in duplicate with all relevant documents i.e. Copy of AC Message (XXR), SOD, and Post Mortem report, Rough Sketch of accident Site. Witness etc. as per guidelines given in GM (P) JBP Letter no. WCR/PHQ/1410/WEL/Ex Gratia Payment Dtd 22-08-2006 and submitted to Accounts for scrutiny and vetting. The claims are scrutinized as per guidelines and put up to Sr. DFM through ADFM for vetting. While scrutiny of the case the amount previously paid as Ex - Gratia interim and through W.C.A. is deducted from the amount payable through Ex- Gratia compensation scheme and net payable amount is vetted. After getting approval of SR. DFM the cases are returned to Personal Branch for preparation of claim in prescribed proforma and with joint signature of SR.DPO and SR.DFM it is put up to DRM for approval. After getting approval of DRM the cases are forwarded to HQ for obtaining concurrence of F.A. &. C.A.O and personal approval of G.M (As per instructions contained in Rly BD’s Letter no. E (W)/2006/ CP-1/37 Dtd. 01-05-2007).

NOTE: Rly BD’s vide their Letter no. E (W)/2006/CP-1/37 Dtd. 0105-2007 has fixed the maximum time limit of three months 218


period to settle down the cases so as to cause minimum hardship to the claimants.

ANNEXURE – 1 (Documents required along with IOD cases)

(1)

AC message (XXR Message) prepared in duplicate by Depot -In -charge to inform HQ the full family particulars and Service Record of the deceased employee. All above documents should be signed by Depot –In- charge and Welfare Inspector and counter signed by Gazetted Officer of concern Department and Personnel Branch. Time Limit:

For Vetting

3 days

A.A. 1 DAY

S.O. 1 DAY ADFM/SRDFM 1 DAY Joint Signature 1 Day 2.3)

Proposal cases of Medical reimbursement

When Railway employees or their family members are taking treatment outside Railway Hospital in emergency or are referred by Railway Doctor for specific treatment in Govt. and other recognized hospital or for specific test from market for which facility is not available in Railway Hospital reimbursement of medical expenses incurred in the treatment of the tests is admissible. These proposals are broadly divided in two categories: -

(I)

(II)

Referred Cases;

When a patient referred by Railway Doctors to Govt. Hospitals or recognized hospitals for treatment or specific test. Non- Referred Cases

These cases relate to a medical condition which require urgent attention and there is inadequate time to report the medical condition to a Railway 219


doctor. Instead, to save the precious life, the matter is referred to a private doctor who is nearest to the place of incident. Clearly, no referral of Rlys doctor is available to bear the expenses. All the claims are received from employees through CMS Will scrutinize the case as per checklist and guidelines circulated by HQ vide JPO No. HQ/AC/ENG/MED – REIM /459 –III Dtd 10-08-2005.

And as per the CGHS rates list the acceptable amount is calculated and recommended for vetting / concurrence as the case may be. When the CGHS rates are not available case is disposed of with the approval of CMS in consultation with associate finance. In Accounts office the case verified against the said JPO and other circulars issued by Railway Board or HQ from time to time. When Pay Order received in Accounts Office the following steps shall be taken: •

CO6 No is given to the Pay Order.

•

Funds are available for the current year.

• • •

It should be seen that required procedure is followed and all documents are available. Sanction of competent authority is enclosed.

Amount shown on Pay order is tallied with the amount concurred.

Time Limit: 10 days for vetting/concurrence 03 days for payment .

2.4)

Proposal cases

Proposals received in the section are broadly on account of implementation of ACP scheme, restructuring of cadre, Stepping up of Pay, Pay anomalies in fixation because of not being considered minimum benefit of Rs.25 w.e.f.01-01-86 and Rs. 100 w.e.f. 01-01-96 at the time of fixation on promotion. Up gradation of pay scale, wrong fixation of pay etc.

220


2.4.1) Proposal cases of Assured Carrier Progression (ACP) Scheme:

Employees particularly at lower level used to retire in the same grade in which they were appointed. Railway Board vides their Letter No. PC-V/99/1/1 Dtd 01-10-1999 allowed two promotions in their service period. This progression is given after completion of twelve year of continuous service and second progression at the end of twenty-four year service.

NOTE: These orders are effective from 01-10-99 onwards only. (Authority: Railway Board Letter No. PC-V/2004/ACP/1 Dtd 31-03-2004)

2.4.2) PROPOSAL CASES OF STEPPING UP OF PAY

The claims are verified on the basis of following details: -

b)

d)

a)

c) e) f)

Service details of both (senior and junior employee), submitted in comparatives statement are checked with the entry of the Service Record.

Name of both employees are appearing in seniority list. It is ensured from service register that senior employee has not refused promotion earlier. It is verified that both the employees has same channel of promotion and were in identical scale.

Para 1313 of Estt. Code Pt. II shall be taken into consideration while dealing with the proposal.

Latest instructions issued by Railway Board in this regard under VIth PC recommendations may also be referred to.

2.4.3) PROPOSAL CASES OF MINIMUM BENEFIT OF PAY FIXATION AND OTHER ARRREAR CLAIMS.

Railway Board on recommendation of IV PC has issued order vide their letter No. PC-IV /86. /IMP/36 Dtd 21-06-88 for grant of minimum benefit of Rs.25 at the time of fixation of pay on promotion and it was subsequently enhance to Rs. 221


100/-after implementation of VIth pay commission vide Bd’s letter No. FE-II/99/FR/1/1 Dtd. 27-09-99. Proposals cases for other arrear claims pertaining to a period prior to 3 years of various nature such as arrears of family planning, HRA, Non payment of increment due to over sight, Transportation allowance arrears, CCA etc. are also dealt in the section. Each claim is examined for reasons of non-payment of dues to the employee. The limit up to which arrears claims can be admitted is specified in chapter 10 of IREM VOL.I amended vide advance correction slip of 1 of 2003. Time Limit- Within 20 days.

3)

RECONSTRUCTION OF SERVICE RECORD:

Service records when misplaced are to be reconstructed. The proposals for reconstruction should accompany the following documents:-

a)

b)

c)

d)

e)

Personal file of the employee maintained by the Personnel department. Document supporting date of birth. Copy of the Appointment order.

Date of promotion to be supported by order copy. Leave Account in original.

4)

The yearly increments are to be checked with the leave account, penalties if any affecting increment etc. For this purpose JA grade committee constituting three officers from Personnel, Accounts and of department concerned is required to scrutiny the records and sign the recasted Service Record.

Scrutiny in Accounts Office is done with regard to: -

a)

SPECIAL PAYSHEETS/PAY ORDERS

b)

222

Whether the competent authority has sanctioned the claim.

Whether the claim is supported by due / drawn statements, arrears statements etc. which has already


c)

e)

d)

been checked by this office at the time of concurring the proposal. Whether the competent authority has signed the pay sheet.

Whether accounts concurrence has been obtained for arrears /claims over one year old and sanction of competent authority is obtained accordingly. If required Rly.Board/Headquarter’s approval has been obtained as per nature of claims. The name of the employee, designation and amount of pay sheet/pay order tallies with the amount concurred by this office.

[1413 A1]

5)

CHECKS ON PAY BILLS

Pay Bills showing the Pay and Allowances for Group A, B, C and Group D employees are received in the Accounts Office to be checked and passed for payment. The pay bills have to be received according to a schedule prepared by SR.DPO and SR.DFM so as to enable accounts office to conduct thorough checks. Bill drawing units should be advised for prompt submission of salary bills to Accounts Office.

A list generated on computer showing the details should be maintained and filed, since CO7 preparation has also been computerized. (For details the Manual of AFRES on Establishment Section may be referred to). However, in the following cases, separate bills can be admitted irrespective of the date fixed for the submission of the Pay Bill of the unit or section to which the employee is attached. Time Limit - Within 3 Days.

6)

INTERNAL CHECK - GAZETTED OFFICERS

Apart from the above-mentioned checks, the following checks shall be exercised for internal check of pay bill of Gazetted staff. Various records maintained in the Accounts office for this purpose are as follows (as per Para 1305 A1): 223


i).

Salary Audit ledger (FORM NO. A 1305)

iv).

Leave accounts of Gazetted staff

ii).

iii).

v).

vi).

vii).

Income Tax recoveries register

Issue of Pay Slips (FORM NO. A 1311) Last Pay Certificate.

Maintenance of service cards. (PARA 1318 A1)

Cadre check and cadre register (PARA 1319 TO 1323 A1)

NOTE: - In the case of Gazetted officers, the ultimate responsibility for the internal check of their bills rest with the Gazetted section of the FA & CAO’s office and unit Accounts Officers, and they shall maintain all the records necessary for this purpose. 7)

CADRE REGISTER AND CADRE CHECK

The main object of maintaining cadre register is to ensure that the number of posts sanctioned for each grade in a department shall in no case be exceeded without the sanctions of competent authority.

a)

Separate folios/portion thereof should be set apart for each category in a department.

c)

The increase/decrease in the cadre strength should be indicated in the remarks column. The total number of sanctions received in the section should be posted correctly. At the end of every month, the entries made should be checked from the salary bills for the month. Changes made during the month, and in case two employees draw pay against one post whenever it is permissible should be recorded clearly. Similarly leave reserve posts if any should also be indicated. Departmental summary should be prepared as a

b)

224

The number of sanctioned post (both permanent and temporary) for the different categories of the employees should be entered in the top of the folio. The temporary sanction should be shown separately.


measure of test check to ensure that there is no excess or irregular operation. The discrepancies noticed, if any, should be put up to the Accounts officer and the matter should be taken up with personnel branch for immediate action. -[1320 -1323 A1]

8)

INCOME TAX

Accounts office is responsible for correct recovery of income tax and for transfer timely of the recovered amount to the IT Department. On basis of estimated income for the year, Bill drawing units should recover approximate amount every month from the salaries of the employees. For this purpose, the Bill drawing officer should send a statement to the Accounts Office every year in advance, showing the particulars of employees, alongwith the detail estimated income and savings under various permissible categories. This should be verified with reference to the pay bill of the officer concerned.As soon as the Accounts for the financial year are closed, Form No.16 prepared by Personal Branch is required to be sent to Accounts for verification. The same has to be returned after verification for disbursement to the officers for filling the Income Tax return. -[1232 – 1233 A1]

9)

RECOVERY OF WATER CHARGES

Bill drawing officers shall recover water charges at the prescribed rates from all the employees, who are in occupation of Railway Quarters. Establishment Section has to ensure while admitting the salary bills of employees that the water charges have been recovered correctly from all the employees who are in occupation of Railway Quarters. Chief Engineer will advice the rate at which the water charges are to be recovered. 225


10)

INCREMENT STATEMENT

a)

b)

11)

SUPPLEMENTARY BILL

Drawn and due statements will be prepared and sent to the Accounts Office whenever there is need for supplementary claims. Relevant office orders will be verified to ensure that the claim preferred through supplementary bill is genuine. At the time of checking the drawn and due statements, Memorandum of differences and Absentee statements of the regular bills for the months to which the supplementary claim relates should be verified to see that it has not been passed for payment provisionally. Regular bills for the months affected should also be verified. A copy of the certified Drawn and Due statement should be sent to the bill preparing unit who will forward the supplementary bill, for the amounts shown in the statement, to Accounts Office. The Bill will be passed for payment duly making a cross reference in the certified Drawn and Due statement.

In the cases of Gazetted officers, the increment statement is sent to Accounts Office by bill preparing authority for certification and inclusion in salary bills. A copy of which is enclosed with the salary bills. The increment statement provides for a column wherein, all periods which do not count for increment i.e., periods of suspension, leave without pay, leave not counted for increment during officiating tenure etc. should be indicated.

-[1405 -1413 A1]

Following checks are to be ensured before passing these bills: -

a)

b)

226

c)

Whether competent authority has signed the pay sheet. i.e. Sr.DPO & APO. Whether budgeting has been done for the claims. Whether scale check has been done.


d)

e)

f)

h)

12)

SCALE CHECK REGISTER

All sanctions in respect of non-Gazetted establishment as received should be entered in scale check register in the prescribed form no. A1407 with separate folios for each class or grade of staff and entries be attested by the S.O. of the section. The pay bill of each unit shall contain a summary of the sanctioned strength and the actual strength of the unit. The actual strength shown in summary should be checked up with the actuals charged in the bill at the time of passing it. Entries from the summary shall be posted in the scale check register for the month concerned. The total strength of each category in the division for the month will be compared with book of sanction available for each category of staff of every department. Instances of excesses over the sanctioned strength, if any should be taken up with the executive authorities concerned. Book of sanction should be reconciled with Personnel Branch every year and certified

g)

i)

Whether pay sheet is accompanied by supporting documents like Memorandum of differences, Absentee statements, Recovery statements, etc

Whether Mileage, over time, Night duty allowance, and National holiday allowance claimed in proper statements sanctioned by the competent authority support the paysheets.

Whether D.A., HRA, CCA etc. claimed in the pay sheets properly worked out as per the extant rules.

Whether miscellaneous payments like T.A., Washing Allowances, the eligible staff claims Nursing Allowances. Whether all pay sheets bear necessary certificate as mentioned in establishment code.

If any correction is seen, it is attested/signed by competent authority and relevant authority letter is produced with the pay sheet.

227


Book of sanctions should be maintained to verify the scale check.

-[1407A1]

13)

LAST PAY CERTIFICATE

When a Railway servant is transferred from one accounting unit to another a Last Pay Certificate (LPC) showing the pay and allowances drawn by him and the date up to which these have been drawn will be prepared by the bill preparing officer in a prescribed form as given in Annexure V of Accounts Code Part - I and sent to the office to which the Railway servant is transferred, duly counter signed by Accounts officer. The different deductions made against him and the sums outstanding against him with particulars thereof will also be shown in the LPC. The PF account number should invariably be indicated in the LPC. The LPC is necessary document for preparation of monthly salary for the office to which the Railway servant is transferred.

-[1212 A1]

13.1) REGISTER OF LAST PAY CERTIFICATES(INWARD AND OUTWARD)

a)

b)

228

Separate register containing the particulars of L.P.C. issued and received should be maintained in the Establishment section of accounts office. As the LPCs constitute a very vital link for the transfer of suspense balances, Provident Fund balances etc., it is necessary to maintain these registers properly and updated.

The correctness of LPC should be checked up expeditiously and the same should be forwarded to the accounts officer concerned. This register should be put up to the Accounts Officer in the first week of every month for his information.


14)

TRAVELLING ALLOWANCE

a)

b)

c)

d)

Traveling allowance is an allowance granted to meet expenditure of a particular type and should be so regulated that it is not on the whole a source of profit to the recipient, and that utmost economy should be observed in the incidence of expenditure on account of TA/DA.

Claims for Traveling Allowances for Non-Gazetted and Gazetted staffs are included in the salary bills after the T.A. statements are certified in the Internal Checking section of Accounts Office.

Traveling Allowances statements submitted to Accounts Office should be accompanied by T.A. Journals countersigned by the duly appointed controlling officer personally except in respect of the staff whose pay does not exceed Grade Pay Rs.4200/-( revised) in the VI- P.C.

The Bill drawing officer should furnish the following certificate in the Traveling Allowance Statement for employees drawing pay Rs.5000/-(pre revised) that “The claim for Travelling Allowance has been checked with the relevant rules, Travelling Allowance journals and other records and found correct.” The claims in such cases are not susceptible for any check in the Accounts Office except in regard to the rate of Travelling Allowance admissible (verified with reference to employees’ Grade pay) and the arithmetical accuracy to the claim. A test check of the original Travelling allowance journals kept in the departmental office is made during periodical inspections and any irregularities noticed in the preparation of claims for Travelling Allowance is to be taken up with the departmental officer concerned. - [1213 to1214 A1]

229


14.1) Checks on TA BILLS:

a)

b)

c)

d)

e)

230

While checking Traveling Allowance bills accompanied by journals it should be seen that the competent controlling officer has in every case countersigned journals.

The pay, pay band and grade pay shown in the TA Bills should be test checked with the pay bills, to ensure that the TA claimed is according to the grade pay and no higher rate of TA is allowed. Object of the journey performed in each case should be mentioned briefly and precisely. It should be checked to see that the journey is performed in the interest of the administration.

The timings of arrival at and departure from head quarters of trains shown in the journal should be checked with the Railway Timetable in force. If the T.A. claimed is at higher rate due to late arrival of Trains, the same has to be checked with reference to late arrival certificates issued by the Station Staff.

In the case of staffs who are regularly on tour throughout the month, as for example Traffic Inspectors, Commercial Inspectors etc, the continuity of the journeys should be checked by comparing the opening entries of the journals under check with the closing entries of the journal for the preceding month terminated by a halt at a Station away from headquarters. It should be seen that the DA/ TA is not claimed continuously for more than a month in violation of the payment of wages act. It should also be seen that no TA is claimed at the same station for more than 180 days continuously.


f)

g)

h)

i)

When a Railway servant is entitled to draw actual expenses, they should in the absence of the orders to the contrary, be set forth in detail. In the case of claims for road mileage, the rates of daily and mileage allowances should be checked with the rates laid down in appropriate rules and submission of the bus tickets should be ensured. The officer of Junior Administrative Grade should authorize journeys, beyond the home line.

It is to be ensured with due verification of the records that Travelling Allowance has not been claimed for the periods the employee was on leave of any kind.

The Travelling Allowance/ daily Allowance claims through Travelling Allowance journals are to be prepared on the basis of journeys performed by the Railway employees in their respective wage periods and not on calendar month basis. If an employee has earned Travelling allowance/ daily Allowance for a continuous period extending beyond the close of the wage period, the portion of the Travelling Allowance claims following within that wage period alone should be claimed in the Travelling Allowance journals for that wage period. The balance of Travelling Allowance claims should be claimed in the Travelling Allowance journals for the subsequent wage period to which they relate. If the journey performed by the employee terminates at HQrs the first day of the next wage period, the T.A. for that day can be included in the same T.A. journal. 231


14.2) TRAVELLING ALLOWANCE RULES

i)

Daily allowance

iv)

Conveyance Allowance

Following are the different kinds of allowances, which like T.A. are also controllable heads of accounts i.e. the expenditure can be controlled under these heads:

ii)

iii)

v)

Mileage Allowance

Consolidated Travelling Allowance Actual cost of Travelling.

14.3) Daily Allowance on Tour Under VIth Commission:

Pay

In super session of Rule 1611 IREC – Vol II (2005 Edn.) and Board’s Letter no. F(E) I/98/AL-28/9 Dated 24.4.98 the grouping of grade pay ranges and the rates of daily allowance are revised as follows w.e.f. 01-9-08 subject to the existing conditions:Grade pay

Daily Allowance (per day)

Officers drawing grade pay of Rs. 10000 and above And those in pay scales of HAG + and above

Rs.520

Officers drawing grade pay of Rs. 4200 to 4800/-

Rs.340

Officers drawing grade pay of Rs. 7600 to 8900/Officers drawing grade pay of Rs. 5400 to 6600/Officers drawing grade pay of Rs. 4200/-

Rs.460 Rs.400 Rs.210

Note: The TA/DA rates mentioned in the Para on mileage allowance for road journeys and daily allowances on tour shall be increased by 25 % whenever Dearness Allowance payable on the revised pay structure goes up by 50 %.

Daily Allowance to an employee will be admissible as under:-

(A)

232

(B)

Less than 6 hours – 30% of daily allowance.

More than 6 hours but does not exceed 12 hours –


(C)

D.)

70% of daily allowance. Full Daily allowance will be admissible for each completed day or more than 12 hours.

If a railway servant under takes more than one journey on any calendar day, he can draw Daily allowance separately for each journey beyond a radius of 8 kilometers but the total Daily Allowance for such journeys on any calendar day shall however be subject to a maximum of the full Daily Allowance admissible for each day of absence from midnight to midnight.

When a train arrives late less than 15 minutes the time of arrival of the train will be taken as time recorded in the Time Table. If the train arrives late more than 15 minutes the certificate of Station Manager will be required.

Note:I Engineering subordinates and staff of signal and TeleCommunication and Electrical Departments when travelling by Trolley within their jurisdiction will be eligible for Travelling Allowance if the actual distance travelled is more than 8 kms, from the Head Quarters. The actual distance along the permanent way from their Head quarters to their place of tour should be taken into account for this purpose and not the distance from the Railway Station to the Railway station.

14.4) CONVEYANCE ALLOWANCES:

In partial modification of rule 1607 (5) IREC-VOL II (2005 Edition) the grade pay ranges for travel by public bus/ Auto Rickshaw /Scooter /Motor Cycle /Taxi /Own car is revised as indicated below:-

(Authority: Rly Bd’s Letter NO. F (E)1/98/AL-28/15 DTD. 0112-2008 )

233

Hand Book on Internal Checks (Railway Accounts) Grade Pay (1)

Entitlement (2)

(i) Officer drawing grade pay of Rs.10000 and above and those in pay scale of HAG + and above

Actual fare by any type of public bus including air-condition bus OR At prescribed rates of AC taxi when the journey is actually performed by AC taxi OR At prescribed rates for auto rickshaws for journeys by auto rickshaws, own scooter , motor cycle . moped etc.

(ii) Officer drawing grade pay of Rs.5400, Rs. 6600 ,Rs.7600, Rs. 8700 and Rs. 8900 (iii) Officers drawing grade pay of Rs. 4600, Rs.4800 (iv) Officers drawing grade pay of Rs. 2400 and above but less than Rs, 4200

(v) Officers drawing grade pay below Rs. 2400

Same as at (i) above with the exception that journeys by AC taxi will not be permissible Same as at (ii) above

Actual fare by any type of public bus other than air conditioned bus OR At prescribed rates for auto rickshaw for journeys by auto rickshaw , own scooter / motor cycle/ moped etc.

Actual fare by ordinary public bus only OR At prescribed rates for auto rickshaw for journeys by auto rickshaw , own scooter /motor cycle/ moped etc.

Mileage Allowance for road journeys shall be regulated at the following rates in places where no specific rates have been prescribed either by the Director of the Transport of the concerned state or of the neighbouring states.

For journeys performed in own car /taxi

For journeys performed by Auto rickshaw, Own scooter etc.

234

Rs. 16 per Km. Rs. 8 per Km.


The rate of mileage allowance for journeys on bicycle and foot on tour and transfer is revised from 60 paisa to Rs. 1.20 per km. 14.5) TRANSPORTATION ALLOWANCE

Consequent upon the decision taken the Govt. on recommendations of the Sixth PC regarding Transportation Allowance vide Ministry of Finance the Railway employees shall be entitled to Transportation Allowance at the following rates:-

Employees Grade Pay of

Grade pay of Rs.5400 & above

(i) Grade pay of Rs.4200, Rs.4600 and Rs.4800 (ii) Those drawing grade pay below Rs.4200 but drawing pay in the pay band equal to Rs.7440 and above Grade pay below 4200 and pay in the pay band below Rs. 7440

Rate of Transport Allowance per month

In 13 cities* classified as A- 1/A earlier

Other Places

Rs.3200+DA thereon

Rs.1600+DA thereon

Rs.600 +DA thereon

Rs.400+DA thereon

Rs.1600 +DA thereon

Rs.800+DA thereon

*Hyderabad (UA),Delhi(UA), Banglore (UA), Greater Mumbai(UA), Chennai (UA),Kolkatta(UA), Ahemdabad(UA), Surat(UA), Nagpur (UA),Pune(UA), Jaipur(UA), Lucknow(UA) and Kanpur(UA).

(Authority:- Railway Bd’ Letter NO. PC-V/2008/A/TA/2 DTD 12-092008)

14.6) COMPOSITE TRANSFER GRANT ON TRANSFER

i)

In the case of transfer involving a change of station located at a distance of more than 20 km from each other the composite transfer grant shall be computed as below:235

Hand Book on Internal Checks (Railway Accounts) Officers in the pay scale of HAG+ and above

One months basic pay as drawn in the pay scale

All other officers

Equal to one months pay is drawn in the Prescribed pay band + the applicable grade pay

ii)

At present only one transfer grant is permitted if the transfer of husband and wife takes place within six months of each other from the same place to the same place w.e.f. the date of implementation of these orders. In cases if the transfer takes place within six months but after 60 days of the transfer of spouse 50 % of the transfer grant on transfer shall be allowed to the spouse transferred later. No transfer grant shall be admissible to the spouse transferred later in case both the transfer orders within 60 days. The existing provisions shall continue to be precluding transfer grant in case of transfer at own request or transfer other than in public interest shall continue to apply unchanged in their case.

(Authority: (Railway Board’s letter No. F (E) I /2008/AL-28/15 date 01-12-2008.) 15)

FOREIGN SERVICE CONTRIBUTION

Foreign Service means service in which a railway servant receives his substantive pay with the sanction of Government

A)

From a source other than the general revenue, or

D)

If the Foreign Service is in India, contributions must be paid on account of the cost of leave salary also.

B)

C)

E)

236

From a company working as state Railway.

While a Railway servant is in Foreign Service, contribution towards the cost of his Pension must be paid to general revenues on his behalf.

Contributions, due under clause (a) and (b) above, shall be paid by the concerned Railway servant himself, unless the foreign employer consents to pay them or otherwise. They shall not be payable during leave taken while in Foreign Service.


F)

When a Railway servant is transferred to a foreign service, contribution towards the cost of his pension or the cost of Government contribution payable to his credit in a Provident Fund, as the case may be, and the cost of leave salary are to be paid by the Foreign employer to the general revenue on his behalf and in the case of the foreign employer does not pay such contribution, the Railway servant himself shall pay the same.

Contributions on account of leave salary must be paid only in the case of transfer is in India. But in special circumstances Foreign Services out of India also the foreign employer can pay the contributions towards leave salary.

Leave salary and pension contributions should be paid separately. Contributions may be paid annually within 15 days from the end of each financial year or within 15 days of the end of Foreign Service in case of Foreign Service completes before the end of financial year. But contributions in respect of SRPF (contributory) will continue to be paid monthly. 15.1) CALCULATION OF FOREIGN SERVICE A)

The rates of pension contribution have been designed to secure to the Railway employee the pension that he would have earned by service under Govt., if he had not been transferred to Foreign Service.

- [IREM VOL II PARA 2006 & 2023]

B)

The rate of contribution for leave salary will be designed to secure the railway employee leave salary on the scale and under the conditions applicable to him. In calculating the rate of leave salary admissible the pay drawn in Foreign Service less, in the case of Railway employees paying their own contributions such part of pay as may be paid as contribution, will count as pay for the purpose of Rule 103(35) (FR 9(2)). 237


I)

Leave Salary Contribution: The rates of leave salary contribution will be @ 11% of pay of the employee drawn in Foreign service.

– [IREM VOL II PARA 2007]

II)

15.2) SIMPLIFICATION OF ADJUSTMENTS ON ACCOUNT OF ALLOCATION OF LEAVE SALARY AND PENSION BETWEEN CENTRAL AND STATE GOVERNMENTS

Pension contribution:

Contribution for pensioner benefits will be on the percentage basis of the maximum monthly pay of the post in officiating/substantive grade according to the length of service of the employee at the time of proceeding on Foreign Service. In pursuant to the recommendations of the committee appointed in connection with the above subject, it has been decided in consultation with the state Govt. to dispense with the system of allocation of leave salary and pension between Central and State Governments as specified below: (a)

Leave Salary:

The liability for leave salary will be borne in full by the Department from which the Govt. Servant proceeds on leave, whether it be parent department or borrowing department with whom he is on deputation.

(b) Pension:

The liability for pension including gratuity will be borne in full by the Central/State Govt. department to which the Govt. employee permanently belongs to at the time of retirement. No recovery of proportionate pension will be made from Central/State Govt. under whom he had served.

(Railway Board Lr. No. F (E)II/87/IN3/1 Dt. 151287) 238


15.3) PROCEDURE FOR PAYMENT OF CONTRIBUTION A copy of the orders sanctioning a railway servant’s transfer to foreign service must always be communicated to the Accounts Officer by the authority by whom the transfer is sanctioned. The railway servant himself should, without delay, communicate a copy to the Accounts Officer and take his instructions as to the officer to whom he is to account for the contribution; report to the latter officer the time and date of all transfers of charge to which he is a party when proceeding on, while in and on return from, foreign service and furnish from time to time particulars regarding his pay in foreign service, leave taken by him, his postal address and any other information which that Accounts Officer may require. - [IREM VOL II PARA 2009]

15.4) INTEREST OR OVERDUE CONTRIBUTIONS

Contribution for leave salary or pension due in respect of a railway servant on foreign service may be paid annually within 15 days from the end of each financial year or at the end of the foreign service, if the deputation on foreign service expires before the end of a financial year, and if the payment is not made within the said period, interest must be paid to Government on the unpaid contribution, unless it is specifically remitted by the President at the rate of two paise a day per Rs.100/- from the date of expiry of the period of 15 days up to the date on which the contribution is finally paid. The Railway servant or the foreign employer shall pay the interest according as the former or the latter pays the contribution. The leave salary and pension contributions should be paid separately as they are creditable to different heads of accounts.

- [IREM VOL II PARA 2012]

Note: No dues recoverable from Govt. on any account should be set apart against these contributions. 239


15.5) TRAVELLING ALLOWANCE

a)

b)

15.6) WITHHOLDING OF CONTRIBUTIONS

A railway servant in Foreign Service may not elect to withhold contributions and to forfeit the right to count as duty in railway service the time spent in foreign employer. The contribution paid on his behalf maintains his claim to pension or to pension and leave salary as the case may be, in accordance with the rules of the service of which he is a member. Neither he nor the foreign employer has any right of property in contribution paid and no claim for refund can be entertained.

The travelling allowance of a Railway servant both in respect of the journey on transfer to Foreign Service and the journey on reversion there from to railway service will be borne by the foreign employer. Promotions

Government servants deputed on Foreign Service are entitled to get pro- form a promotion while on Foreign Service and such promotion shall be regulated in the same manner in the principle of “Next below Rule”. The increased pay due to promotion should be taken into account for FSC.

15.7) PAYMENT BY FOREIGN EMPLOYER OF PENSION OR GRATUITY

A Railway servant transferred to foreign service may not, without the sanction of the President, accept a pension or gratuity from his foreign employer in respect of such service. 15.8) LEAVE DURING FOREIGN SERVICE IN INDIA

A railway servant in foreign service in India may not be granted leave otherwise than in accordance with the rules applicable to the service of which he is a member, and may not take leave or receive leave salary from Govt. unless he actually quits duty and goes on leave.

240


15.9) LEAVE DURING FOREIGN SERVICE OUT OF INDIA

A.

His employer on such conditions may grant a Railway servant in Foreign Service out of India leave as the employer may determine. In any individual case, the authority sanctioning the transfer may determine before hand, in consultation with the employer, the conditions on which the employer will grant leave. The employer will pay the leave salary in respect of leave granted by the employer and leave will not be debited against the railway servant’s leave account. In special circumstances, the authority sanctioning a transfer to foreign service out of India may make an arrangement with the foreign employer, under which leave may be granted to the Railway servant in accordance with the rules applicable to him as a railway servant, if the foreign employer pay to Central Government leave contribution at the rate prescribed under Rule 2007 (FR 116).

- [IREM VOL II PARA 2016 to17]

15.10) RECOVERY OF FOREIGN SERVICE CONTRIBUTION

Register of Railway servants in Foreign Service and whose contributions are adjustable in the books of the Railway should be maintained in Establishment Section to enable a check being exercised over the recovery of the contribution. This Register should be posted after the sanction to the transfer is scrutinized and the Accounts Officer should attest the entries. The register should be reviewed and watched for the realisation of the FSC periodically. All orders received regarding a Railway servant on foreign service and orders issued by the Accounts office for recovery of interest or if contributions in arrears and the cause of the contribution ceasing to be realised owing either to transfer, death, dismissal or any cause should be recorded in this Register. Records to be maintained in form No.A1221-Code for the Accounts department 1997 (Second Print). 241


15.11) DELAY IN RECOVERY OF FSC CHARGES

The rates per men sum at which Foreign Service contributions are payable shall be included in the terms and conditions of transfer. The foreign employer or the Railway servant should arrange to pay the contribution (FSC) within 15 days from the end of month in which the Railway servant has drawn the pay on which it is based. This clause should be incorporated in the terms of the Transfer. On relief of a Railway servant to Foreign Service, a copy of the relief office order together with the terms of the transfer should be forwarded to the Accounts Office.

In several cases, sanctions containing the terms and conditions of transfer on Foreign Service are being issued very late with the result that calculation and intimation of the rates of Foreign Service contributions are delayed and penal interest become payable. With a view to facilitating the recovery of Foreign Service contributions in time and there by avoiding payment of penal interest etc. it should be ensured that in case of transfer of Railway servant to Foreign Service all the terms and conditions of his transfer are settled well in advance in consultation with foreign employer, the Accounts Officer and Railway employee concerned before the employee is released to take up the foreign service.

242

The Accounts office should verify the correctness of the rate of Foreign Service and make necessary entry in the FSC Register. The details of Foreign Service should be entered in the service record of the Railway servant. Any alteration in rate of FSC due to change in the rate of pay in the parent Department or Foreign Service should be advised by the Executive to the Railway servant, foreign employer and to the Accounts office. Particulars of leave availed by the Railway servant while in Foreign Service shall be immediately advised to the Accounts officer. The Accounts office shall make necessary entries and adjustment of leave salary in the Books of the Railway. The Accounts office should watch the receipt of the Foreign Service contribution and on receipt of the same


shall make entries and adjust the same in the Books of the Railways. The details should be recorded in the Register kept for this purpose. Delay in receipt of FSC should be promptly brought to the notice of the Executive and Foreign employer and Railway servant. Interest on outstanding Foreign Service contributions should be claimed as per terms. A complete list of staff who were on Foreign service should be furnished to Accounts Office by personnel Department to enable the Accounts to watch and verify whether the FSC charges are realised correctly.

16)

PROCEDURE FOR TEST-CHECK:


- [Para 803 A1]

16.1) RECORDING OF RESULTS OF TEST CHECK :


SR NO.

Item of w o r k t e s t checked

Extent of Test check prescribed

Particulars of vouchers elected for test check

Name of the SO / SSO(A)who had test Checked the item


1

2

3

4

5

6


243




The observations as a result of the test check should be clearly indicative of the appraisal by the checking authority of the quality of performance of the clerks whose work came up for test check. 16.2) TEST CHECK OF REGISTERS:

Another important item of test check is the inspection of different registers by the Gazetted Officers. The intervals at which different registers maintained in Accounts Offices should be put up for inspection by Officers has been prescribed in Appendix VIII of the State Railway Code for the Accounts Departments-Part-I.

16.3) PERIODICITY OF SUBMISSION OF TEST CHECK REGISTER TO OFFICERS:

244

Every test checks register should be provided with an inspection sheet below the front page indicating the month of test check, date on which put up and the date reviewed by the Officer concerned. The test check registers of Section Officers and Senior Section Officers should be put up to the Branch Officer on the 10th of each month indicating the test check done on the work of clerk in the preceding month for review and orders, where necessary, by the Branch Officers. A brief of important test checks shall be put up to FA&CAO through MPR.


Extent of Test Checks required for different type of works.Description the Work

Extent of check by Gazetted Officer.

Extent of check by SO(A)/ SSO (A)

Foreign Service Contributions register

Monthly review

5 items to be checked completely every month, and monthly review.

Pay sheets

(i) Salary Bills of one G.O. and one nonGazetted staff per month.

Payment W.C.Act

of

under

Supplementary Bills. Scale Register

check

Internal check of TA Bills Leave application of Gazetted Officer Journal Voucher

Last Pay Certificate

Service Cards of Gazetted Officers Posting in S.A.R

1 case per month

4 cases per month

Supplementary bills of 2 non-Gazetted staff per month.

10 Non-Gazetted staff per month.

TA Bills of 2 Gazetted and TA Bills of 4 nonGazetted staff

TA Bills of 8 Gazetted and 8 non-Gazetted staff

Entries in respect of one salary bill once in 2 months. One leave application every alternative month One JV every month

One LPC every month

Few entries on 20% of cards at the end each 5 year period Two cases per month

Entries in respect of two salary bills per month

2 leave applications per month 4 JVs every month.

2 LPCs every month

2 Service Cards per month Six cases per month

17)

STAFF BENEFIT FUND (SBF):

SBF is established solely for the benefit and welfare of the non gazetted employees t o help them for certain specific purpose. This fund is primarily intended to relieve the 245


railway employees from the distress caused to them due to certain economic , educational and health problems . This fund is managed by a committee at the headquarter of the railways and consists of:-

•

•

•

•

CHAIRMAN

OFFICIAL MEMBER

SECERATERY

-Chief Personal Officer

-DY. GM & Chief Medical Officer -Welfare Officer

MEMBERS -Six members elected from recognised unions.

-Four members elected by the Central staff council or the G.M. (where Central staff council is not established)

Similarly, Regional sub- committees are formed in the division and workshop to administer the fund.

(I)

Resources:- The SBF is financed from:-

(1)

Receipts from forfeited PF bonuses of non gazetted employees .

(3)

Contribution from Railway revenue @ Rs.20 per year a per capita basis i.e. Rs. 20/- per head of non gazetted employees on strength preceding 31st March.

(2)

(4)

All other receipts which used to be credited to the fund previously.

Adhoc grant which is being given to each of the Railway by Railway Board from time to time.

The distribution of the SBF grant is as under:-

(II)

General activities:-

(a) Educational:- Assistance for the purpose of higher studies in engineering , scientific, medical, diploma and management courses , in the shape of scholarship. 246


(b) (c)

(d)

Recreation other than sports

Inter Railway cultural competition.

Relief of distress, sickness etc.:- Relief to deaf dumb and blind children of Railway employees.

(e) Miscellaneous.

(III)

Sports activities

(IV)

Scout activities

(V)

Recreation facilities to officers and supervisory staff.

(VI) Indigenous system Homeopathy .

of

medicine

including

(Authority: Rly Bd’s letter no. E(W)97/FU-1/4 Dated 13-10-99.)

18)

A consolidated list of employees/ their wards approved by sub committee is forwarded to zonal committee and after approval getting from zonal committee the same is circulated to the divisions and on the basis of approve list the depot/ personal branch will prepare special pay sheets / pay orders and send it to Accounts office for passing. Immediate after receipt of the same in the Accounts office after scrutiny the same is passed and co7 is prepared by charging the expenditure to the Headquarter and transfer the debit through transfer certificate. CHILDREN EDUCATION ASSISTANCE:-

Consequent upon the Govt. on recommendations made by VI PC and in suppression of all earlier orders on the subject of children education allowance and reimbursement of tuition fees , the following instructions are revised:I.

Children Education Allowance

(a)

Children education allowance and reimbursement of tuition fees, which where hither to payable separately will be merged and will henceforth be known as “Children Education Allowance Scheme.” 247


(b)

Under this scheme reimbursement can be availed by Govt. servant up to a maximum of two children.

(d)

(e)

The reimbursement of children education allowance shall have no nexus with the performance of the child in his class. In other words, even a child fails in a particular class the reimbursement of children education allowance shall not be stopped.

(f)

(h)

(c)

(g)

248

Reimbursement as indicated above will be applicable for expenditure on the education of school going children only i.e. for children from class nursery to twelve , including classes 11th and 12th held by Junior colleges or schools affiliated to universities or Board of education.

Reimbursement for the following items can be claimed under this scheme. :Tuition fee, Admission fee, Laboratory fee , Special charges for agriculture , Electronics , Music or any other subjects ,are charged for practical work under the programme of work experience , fee paid for the use of any aid or appliance by the child , library fees, games /sports fees, and fee for extra curricular activities . This also includes reimbursement for the purchase of one set of text books and note books, two sets of uniforms and one set of school shoes. Which can be claimed for a child, in a year.

The annual ceiling fixed for reimbursement of education allowance is Rs. 12000/- per child. Under this scheme reimbursement can be claimed once every quarter. The amount that can be claimed in a quarter could be more than three thousand and in another quarter less than three thousand subject to the annual ceiling of Rs.12000/- per child being maintained. In case both the spouses are Govt. servant , only one of them can avail reimbursement under this scheme.


(i)

II

The above limit would be automatically raised by 25 % every time the DA on the revised pay structure goes up by 50 %.

Hostel Subsidy :

Hostel subsidy will be reimbursed up to the maximum limit of Rs. 3000/ per month per child subject to a maximum of two children. However, both hostel subsidy and children education allowance can not be availed concurrently. These orders shall be effected 01-09-2008.

(Authority:- Railway Board Letter no. E(W) 2008 / ED-2/4 Dated 0110- 2008 ) 19)

PNM/PPM

19.1) Permanent Negotiation Machinery (PNM)- This machinery has been set up in the Railway with a view to maintain an effective contact with labour and also to see to resolve disputes and differences arises between the labour and the administration in day to day working . The solution to various disputes and differences is sort to be achieved by means of negotiations for which this machinery has been introduced.

(a)

The PNM works at three levels:-

At divisional level, where the PNM meet the local administration once in two month and discuss the problems of employees of the particulars establishment. Many a problems are solved at such meeting and better understanding between the workers and the administration. If some problems evades at this level, they are referred at the next higher level. In division DRM/ADRM is the chairman of the meeting. If any booklet regarding any PNM items related with establishment claims of the employees is received, immediate reply of such items is to be given 249


(b)

(c)

and the details of payment if passed by Accounts may be given like CO7 NO. amount passed etc.

At Zonal level, where the workers representatives meet the officers of the headquarters including the General Manager once in three months and all outstanding problems are discussed. The problems which can not be settled at this level are brought before the still higher level. At Railway Board level , where all problems which could not be solved satisfactory at Railway’s level , are raised in the half yearly meeting between the federation and the Railway Board.

If some differences and disagreements still remain unsettled , these are referred to an adhoc Railway Tribunal with a neutral Chairman and having representatives both of the Railway Board and the Federation.

19.2) Payment pending meeting (PPM):-

250

DPO is the chairman of PPM at division level, whereas ADEN is the chairman at sub-division level. This meeting is to be held on monthly basis. In such meeting authorized representatives of union, one ADFM from Accounts side and DPO will sit together and the problems of employees’ claims which are included in the agenda and for which one booklet is prepared and circulated well in advance to all concern is discussed and settled. The items which are included for the discussion in the PPM is discussed with the union representatives and one SR.SO/SO from Account side will participate in such meeting to settle down the items. Those items which are not settled during the sub – divisional PPM are referred to divisional PPM for discussion and for its disposal.


20)

Productivity Linked Bonus (PLB):-

AIRF AND NFIR accepts the scheme of PLB in view of their demand for payment under the payment of bonus act 1965.

PLB for each financial year covered by this scheme shall be paid by 31st October of the succeeding financial year. The grant of PLB intended to provide substantial motivation towards achieving higher productivity by way of increase the output by the employees and improve quality of service.

The productivity shall be determined solely on the basis of Revenue Traffic Tonne Kilometer achieved each year as derived from the relevant audited statement of statistics of Indian Railways. The actual performance alone shall be the basis of productivity and the productivity linked bonus.

Railway board in consultation with the federation members the days of PLB and the monthly ceiling limit decides and on the basis of such orders the personal branch prepares bonus cards for each employee and pay sheets of the bonus and the same is received in the Accounts office wherein it is passed and such bonus cards are kept for post check purpose. While post checking if any over payment is detected the personal branch is intimated for their recovery under advice to Accounts office.

21) Maintenance of Service Records and Salary Audit Registers for Gazetted officers.:

When a gazetted officer arrived on transfer from other accounting unit their service records to be received as early as possible to enable this office to maintain their Salary audit register accordingly. For the purpose immediate after receipt of audited LPC from transferred accounting unit the letter is to be written to such accounting unit and matter is to be personally chased by supervisor level. Similarly, the SRs of the officers who have been transferred to other accounting unit their SR after completing all details like leave details, increment sheet etc to be transferred at the earliest to the accounting unit where he has been transferred. 251


Time Limit: 15 days for inward and outward SRs.

In computerization environment the SAR is now computerized and passing the regular payment of officers the hard copy is being extracted.

22) AFRES (PROCEDURE TO ESTABLISHEMENT SECTION)

BE

FOLLOWED

IN

Apart from checks mentioned in previous pages the process of taking CO6 no. and making CO7 for passing the bills through AFRES, involve the following modus operandi :-

i).

ii)

iii)

v)

iv)

vi)

vii)

252

Password is allotted to each bill clerk wherein he will open AFRES with his own password.

After Selecting Internal Check menu he will open Transaction Menu, where following options are available: •

Salary Bills Register and Posting.

•

Bill Return

• • • • •

Supplementary Bills Register and posting Non- Salary Bills register and posting Co7 Posting

Co7 Confirmation /cancellation Cash Outward Transaction

As per requirements, he will select one of the options.

Reconcile the figure of Pay bill concerned and as given in menu if all figure match then ‘AU6 ‘No. is selected.

For preparation of Co7, the bill-passing menu is opened and AU6 already checked, selected for proposals of Co7. Co7 No. will be noted down, automatically selected by system, on pay sheet concerned and can be printed in “Report Menu.”

Bill clerk and SSO (ESTT.) check these bills and after the checks the same will be put up to Accounts Officer for signature.


viii) The bills should be handed over to Books Section after confirmation of Co7, for preparation of cheques / Electronic Transfer.

It may be noted that in case of any irregularity it should be traced in ‘Audit Menu”. In case of return for Executive office “Bill Return Menu” is to be operated. There are few transactions like Misc. Pay Orders, Unpaid vouchers, Court Attachment Pay Order etc., which are not generated through ‘PRIME”. In addition to above certain books adjustment are required to be carried out. Such adjustments are done by preparing ATC/ATD and RJV by selecting ‘Cash Outward Transaction” and by entering detailed head of account to be debited or credited with amount. At the end of the month AU6 Register for the month is printed selecting ‘AU6 REGISTER MENU” For audit and record purpose.

Note: The detailed procedure of working on AFRES is annexed as AFRES USER MANUAL

253

Chapter 8

BILLS RECOVERABLE 1)

BILLING:

Bills are prepared for the various facilities, provided by Railways, such as sidings, land licensing, interest and maintenance charges for various sidings. Every revision has done by the executive then these office issues normal bills till next revision. It is to be seen that the bills are prepared timely & correctly, with reference to facility, rate, area, previous out standings, period for which being billed.

Bills for cost of Commercial staff, C&W maintenance charges since been prepared by concerned executives quarterly. It is vetted by Accounts and after vetting the same is returned to them for onward transmission.

2)

254

Bills for way leave charges not issued by Accounts since the charges already vetted and demand notes are issued by ENGG. Department. License fee of Land/Plot rent:

Policy guidelines for commercial licensing of Railway land last issue vide Bd’s letter no.63W2/Livi/18/87 dated 29.08.95 in super session of the earlier policy directives, have been amended from time to time. With a view to bring all such policy instructions under one umbrella, it has been decided to issue a Master Circular combining all the instructions issued so far on the subject. Considering above aspects Railway Board vide their letter No.2005/LML/18/8 Dated 10-01-2005 has issued instruction in this regard and Railways are required to quote this letter for any further reference .However , amendment to this letter is received vide letter no. 2005/LML/18/8 dtd 0806-2005 . While dealing with the issue this letter may also be kept in mind.

Bills Recoverable

3)

For dealing with the cases of Licensing of Railway land for (RAILTEL CORP. OF INDIA LTDD.(RCIL) BD’s letter no. 02/ LML/13/12 Dtd. 10-10-06 may be kept in mind . This is also reiterated that while dealing any land licensing proposal latest instruction on the issue should be referred to. Schools & Welfare Organisations and Mandirs , Masjids and Gurudwaras:

For schools and welfare organizations, separate instructions have been issued vide letter No.92/LM (L)/21/4 of 11/05/1992. A nominal amount, to be paid each year, has been fixed for these organizations. For Mandirs, Masjids and Gurudwaras, Railway Board has issued separate instructions vide letters No.2000/LML/22/1 of 31/05/2001, wherein it has been decided to charge a nominal fee from them, with a provision of revision from time to time. These orders are specific to some cases. Railway Board’s letter No.84/W2/ LM/18/159 of 21/05/87), however, lays down comprehensive guidelines about religious structures.

4)

Way-Leave Charges:

Way leave facilities / easement rights on Railway land involve occasional or limited use of land by a party for a specified purpose like passage etc. without conferring upon the party any right of possession or occupation of the land and without in any way affecting the Railway’s title, possession, control and use of the land.

-PARA 1033 (ENGG CODE)

Guidelines regarding fixing of way-leave charges were issued vide Board’s letter No.97/LML/24/3 Of 27-11-01 , which clearly defines the modus operandi to be followed while fixing the way – leave- charges in different matter. However regarding laying of optic fiber cable (OFC) cable , Railway Board vide their letter no. 2001/LML/24/20 Dated 16-08-2005 have issued detailed guide line which may be kept in mind while dealing any such proposal. Regarding way 255


5)

6)

leave facility for under ground laying of cable tv , Bd’s letter no. 20001/LML/24/20 dtd 13-11-01 will be the guiding factor however , any correction slip etc. issued afterwards should also be considered while dealing with the issue. RENT OF BUILDINGS.

Buildings rented to private parties are treated equivalent to licensing of land. Hence they are covered under Board’s letter of 29/08/95. However, policy regarding provision of Quarters for GRP personnel has been laid down vide Board’s letter No.92/LM(B)/21/41/Policy of 12/10/93. The letter stipulates that a rate of 3% of the market value of land is to be charged, with revisions every 10 years. Assisted Siding

(i)

(ii)

The words “Interest and Maintenance” charges are used typically in the context of Assisted sidings who are required to pay an “interest & depreciation charge” on the capital cost as per book value borne by Railway in the initial construction at the prevalent rate of Dividend payable to the general revenue (7% since 1993, as per Appendix IV of the report of Railway Convention Committee).

In addition to interest, the party has to pay maintenance charges at the rate of 4/2% on the cost of portion of siding borne by Railways on the present day cost of the siding. Maintenance charges will be payable on the portion of siding outside Railway’s premises and are subject to review every five years. For example, if in 1996, a siding was provided at Rs.100/-, the maintenance charge will be Rs.4.50/-. In the year 2001, if the assessed cost of the review is Rs.150/-, the maintenance charge will be Rs.6.75/-.

7)

Private Sidings

Instructions with regard to levy of maintenance charges for the private sidings have been laid down vide Board’s

256

Bills Recoverable

letter No.58/W1/SA/13 of 23/04/1982 which were further modified vide Board’s letter No.85/W1/SP/45 of 01/12/1986 and letter No.85/W1/SP/45 of 20/04/87.

The circular of 23/04/1982 was issued with the intention of laying down a uniform procedure in view of representations being received from siding owners about lack of uniformity from one Railway to another. The process of calculation of maintenance charges is rather tedious and not easily intelligible. The same is explained as under:

•

The first step is to arrive at charges per kilometer which would account for the following factors: -

(a)

T & P charges -

Rs.200/-

(c)

Staff cost (at scale prescribed) -

Pay+ allowances as specified in by Board vide Board's letter of 23/04/1982

(b)

Replacement of small fittings -

(d)

•

The staff requirement for one kilometer of siding has also been specified by Board.

•

For every 10 sets of points & crossings, one kilometer is to be added to siding length reckoned for levy of maintenance charges.

7.1)

Payment of Inspection Charges:

Departmental charges

3% per year of cost of new fittings

12% of (a+b+c above)

In the event of the portion of siding inside party’s premises being maintained by the party itself, inspection charges are leviable. These charges are in the nature of a fixed minimum amount for the first ten kilometers of siding lengths, and then an amount 257


7.2)

ACRONYM WAGES

DA+Arrs HRA

CCA

NHP

TA

NDA

OT

Trans Allow

for every km. beyond 10kms. These charges are also subject to five-yearly revisions. These instructions are contained in Board’s letter No.83/W1/SP/12/PT of 22/03/1993. Cost of Staff:

As the name suggests, these charges are levied on actual basis for the staff deployed to sidings. The elements, which are charged, are as under: STANDS FOR Basic Pay

DA + Arrears (if any) on DA.

House Rent Allowance City Compensatory Allowance National Holiday Pay T r a v e l i n g Allowance

Night Allowance Over Time

Duty

Tra n s p o r t a t i o n Allowance

Incidental Exp

Incidental Charges

Leave Salary

Leave Salary

258

REMARKS Charged as per the grade of the employee. Charged as per the rate of DA fixed by the Central Government from time to time. Charged as per the Grade of the place where the staff is deployed. Charged as per the Grade of the place where the staff is deployed. Charged for those employees who work on National Holidays. Charged as per the prevalent TA rules and the actual movement of the employee. Charged for those employees who are performing night duty. Charged on the actual over time worked by the employee. Charged as per the conveyance allowance fixed by the VIth Pay Commission. Charged @10% of (Pay + Allowances) as per Railway Board’s letter No. F(E)II-83/ Misc/1 of 27/06/1984. Charged @ 15% of (Pay + Allowances) as per Railway Board’s letter No. F(E)II-83/ Misc/1 of 27/06/1984.

Bills Recoverable

ACRONYM Contribution to SRPF & GRATU Deduction towards House Rent, Electricity and Water Charges, Meter Rent.

Deduction towards House Rent, Electricity and Water Charges, Meter Rent.

REMARKS Charged @ 1/8 of (Pay+DA) as per Railway Board’s letter No.F(E)II83/Misc/1 of 27/06/1984. This amount is being deducted from the bills raised on the party if the party has provided these facilities to the Railway Staff.

However, vide letter No.85/W1/SP/45 of 01/12/1986, Railway Board has specified that the cost of staff, except commercial, staff at sidings dealing with POL and other hazardous commodities, and those exceptional cases enlisted in Board’s letter No.77/M (N)/951/36 of 13/04/1981, required by the railways for the operation of the siding should be borne by the Railways. This has been reiterated by Railway Board’s letter No.99/TC(FM)/26/1 of 29/09/2000. 7.2.1) Procedure for Billing:

STANDS FOR Contribution to PF & Gratuity

The pay bill for siding staff is first passed in the normal course. The same is then submitted to Personnel Branch for adding the extra components like Incidental expenses, Leave Salary, Contribution to SRPF etc. After addition of these elements, the bill is sent to Accounts office for raising the bill on the party.

7.2.2) Disputes arising in Staff Bills:

Some of the common disputes arising between Railways and parties on staff bills are as under: -

i) Staff is billed for as per ‘Sanctioned Strength’ whereas salaries are drawn as per ‘Men on Roll’. ii) Sidings provide accommodation in some cases to Railway Staff. The staff posted gets transferred but fails to 259


vacate the quarters. The new staff coming in his palace is entitled for and claims HRA, which is paid by Railways, and the party is also billed for the same. The siding however is not due to pay to the extent it has provided quarters and hence disputes take place. iii) Payment of overtime is another core issue. Since rakes arrive at odd hours, Railway staff is due to claim overtime beyond normal duty hours even if they have not had to work during their normal hours of duty. In some cases the OT charged is more than the wages drawn. 8)

Wagon Repair/Loco Hire Charges:

This constitutes a very minor element of XBR. The bills for these charges are raised as and when they are received from the concerned executive. No major problems are faced in their recovery.

9)

260

Maintenance Charges of ROBs, FOBs and Level Crossings: No specific orders from the Board were traceable regarding maintenance charges of ROBs and FOBs. However, as per the standard format of agreement signed with the Government Authorities. It is to be levied upon with the provision of revision as and when considered necessary by the Railways. Regarding Level Crossings, Para 1851 of the Engineering Code states that in cases where extra establishment is engaged in connection with the maintenance and operation of any deposit work (e.g. a gateman engaged for operating the gate of a level crossing constructed at the cost of another Government Department/Private Party), the actual pay and allowances of such establishment, together with such additional charges as are prescribed in Para 575 of Indian Railway Establishment Code, should be recovered. Besides,

Bills Recoverable

10) 11)

as per the standard format of agreement with the sidings, maintenance and cost of establishment for the level crossings within the siding limits are to be borne by the applicant. DESPATCH:

It is to be confirmed that the bills prepared are dispatched to the concerned party in time. PREPARATION OF JV:

JV’s to be prepared after raising of bills and receipt of payments thereon. For adjustment of bills with Government bodies JV’s are required to be prepared after receipt of acceptance of bills.

12)

MAINTENANCE OF SUSPENSE REGISTER:

The Suspense Head DR/BR is to be debited for the amount of bills raised to various parties for different facilities provided, and Credited for the amount realized.

13)

14)

15)

WATCHING / CHASING RECOVERIES:

The bills so raised are required to be reviewed for receipt of Payment. If there is any delay/dispute by the party concerned the same is required to be resolved through telephonically/ correspondence and if necessary by deputing the staff of XBR section for settling the dispute. PREPARATION OF ACKNOWLEDGEMENT:

After ensuring the amount billed has been realized i.e. DD/ Cheque etc. received from the party concern same is forwarded to Divisional Cashier Bhopal for encashment. Copy of the same endorsed to party concern as an acknowledgement. ENTRIES IN CONCERNED REGISTERS:

Entries for raising of bills and amounts realized are to be made in registers maintained for the purpose, i.e. Siding Register, Repairs & Maintenance register etc. Party wise accounts are 261


16) 17)

18)

required to be maintained to provide information regarding amount billed, realized, outstanding if any etc. at a glance, at any point of time. RECONCILATION WITH BOOKS SECTION:

The amount booked to the suspense heads is to be reconciled with the book section EVERY MONTH. PREPARATION OF STATEMENTS:

Preparation of Fort Nightly. Monthly, quarterly, and half-yearly statements of suspense heads i.e. Demands Recoverable and Bills Recoverable (not treating as Suspense heads) , sending the same to concern executive , as well as to FA&CAO, as per the schedule time. Procedure for Test-Check:


- [Para 803 A1]


262


Bills Recoverable Name of the SO/SSO (A) who had test checked the item

1

2

4

5

3

Whether the discrepancy in col.6 has been pointed out by the supervisory staff


Particulars of vouchers elected for test check

SR NO.

Item of Extent of work Test check test prescribed checked

6

7



The observations as a result of the test check should be clearly indicative of the appraisal by the checking authority of the quality of performance of the clerks whose work came up for test check.

18.2) Test- Check of registers:

Another important item of test check is the inspection of different registers by the Gazetted Officers. The intervals at which different registers maintained in Accounts Offices should be put up for inspection by Officers. 263


18.3) Periodicity of submission of Test- Check oregister to Officers:

264


Chapter 9

BOOK SECTION 1)

Procedure followed before preparation of cheques / In lieu cheques.

The passed CO-7 printouts along with relevant vouchers are received from various Sections for arranging of payment. On receipt, they are entered into a register meant for the purpose. The CO-7s are scrutinized and based on the section code a summery is generated. Subsequent to the summery generation, cheques are printed. The Cheques duly stamped and signed by a competent authority, are then sent to pay office. Before dispatching to the pay office, the cheques particulars are recorded in a register maintained for the purpose. The pay & cash office provides the acknowledgement of the cheques mentioned in the register to the books section. A soft copy is sent to the concerned bank for facilitation of payment where ECS & EFT is chosen as mode of payment. The sponsored bank credits the paid amount in the bank accounts of employees in their respective Banks.

NOTE : Now in most of the accounting unit this process is carried out on AFRES and printing of cheques is computerized. The concern sections after signing of CO-7 by the officer, dispatch it on AFRES by confirming the CO7 so that the data of CO7 on AFRES is passed on to Books section and physically send the C07 and voucher to Books sections. While preparing the summary Books section arrange the physically received CO7 ensures the completeness of CO7 and vouchers for its payment and selects the C07 number in AFRES to include in cheque summary. When the requisite CO7s are selected computerized cheque summary is generated. After generating cheque summary cheque printing is also carried out on AFRES by using continuous cheque stationery for various treasuries operated in the accounting unit. 265


2)

Preparation of In-lieu Cheques:

In lieu cheques are prepared and re-issued to the parties where cheques are either lost or received back in the books section for effecting corrections of any nature like error in account holders name, wrong treasury or invalid cheques. However, where a cheques is lost or burnt or can’t be produced physically to the section, an indemnity bond is required to be executed by the party. After getting the confirmation from the concerned bank about the cheque being yet realized, the in lieu cheque is issued. In all other cases, where the issued cheques are available and can be presented to the books section, the in lieu cheques are issued with no requirement of execution of indemnity bond. The In-lieu Register is recorded wherever an in-lieu of cheque is issued.

NOTE : Issue of In-lieu cheques is also carried out on AFRES by generating the summary of such cancelled cheque and its inlieu cheque.

(2.A) Preparation of Cheque indents:

(2.B) Issue of advice to Banks for Cheques books brought in use

(2.C) Sending of Specimen signatures

266

The indents for the following year for MICR & nonMICR Cheques are submitted to FA & CAO (Books) every year. Quantity is arrived, taking the actual consumption of cheques during the past few years. The advice regarding the cheque book currently is in use is required to be sent to Banks immediately after using the new cheque book. Specimen signatures of accounts officers who are authorized to draw payment are required to be sent to the RBI, SBI and other treasuries concerned as and when the officials are transferred from and to the office. Each authorized officer is allotted signature code by HQ. As and when officer is transferred to other unit, this code is cancelled.

Books Section

(2.D) Maintenance of Ex-chequer

3)

Remittance transaction

The transactions between the railways on the one hand and departments of central and state government on the other hand are known as remittance transactions. The following heads of accounts are operated to record the remittance transaction:

The exchequer (cash authorization by RBI through Rly Board/HQ) is allotted for every quarter by the HQ (FA & CAO/BOOKS) and it is intimated to all the concerned units. Total expenditure incurred to the date should be compared with Allotment of funds on daily basis to avoid a situation wherein the expenditure starts exceeding the prescribed limit of funds. SR.DFM is intimated timely regarding status of Ex-chequer. Besides, Cashbook figures are reconciled with the figures appearing in the Ex-chequer register. A day-to-day exchequer position is maintained in the register.

a. Reserve Bank Suspense b. Remittance into bank c. Cheques and bills d. PAO suspense e. AG suspense

f. Remittance accounts with Defence and postal g. Reserve Bank Deposit 3.A

Reserve Bank Suspense:

The transactions that originate in the books of defence, Postal department, and ministry of external affaires or in DGS&D and get adjusted in the books of railways are settled through reserve bank of India. The suspense head RBS is operated to record the inward transactions intimated by 267


3.B

the departments mentioned above. All items under the RBS should be cleared by the closing of March accounts, however in case of any uncleared balance in the head at the end of year; the debit balance is transferred to miscellaneous advance revenue while credit balance is to be transferred to deposit miscellaneous account. Remittance into Bank and reconciliation

This account is a suspence head under major head “L Suspence & Miscellaneous” and intended to record the remittances made into banks and to watch their realization.

268

The amount deposited into banks, as adviced by chief cashier/ paymaster, are debited to “Remittance into Bank” through general cashbook and credited to “Revenue/Service head”. Station earnings are remitted into banks in two ways. In the first instance, some stations may directly remit the cash into bank while in other stations may forward the cash to cash office through traffic cash safe and the chief cashier/pay master deposit cash in the bank. While depositing the cash in bank, “treasury remittance notes” are prepared to obtain acknowledgment from the banks. Sometimes instruments like cheques and DD are received in accounts office for realization. They are sent to cash office/pay office mentioning the head of allocation to which amount should be credited. In reciprocation, Cash office/pay office sends one copy of Bank acknowledgement to account office of challans, remittance on daily/weekly/fortnightly basis as possible. On receiving the cashbook, entries made in the book are checked in respect of the concerned challan numbers and amount. Thereafter, a cash JV is prepared by debiting to remittance into bank “00867009” and crediting to revenue or service head. After finalization of cashbook, a JV and an ATD is prepared by minus debiting to “00867011” and debiting to HQ. In the books of HQ, which receives the ATS from divisions, workshop units, construction units, and the statement of remittances into bank, allocation head “00867009” is charged through a JV

Books Section

.On receipt of clearance memos from RBI and the focal point branches in respect of cash and cheques, DD deposited into bank, books section prepares a JV debiting remittance into bank “00867011” and crediting to reserve bank deposit. The balance under the head “remittance into bank” “00867009” represents the cash or cheque deposited into bank but not acknowledged by them. Balances in the allocation “00867011” represent the cash or cheque deposited in bank and acknowledged by them. The item mentioned in allocation “00867009” and allocations “00867011” are matched and in case of any unmatched item and remained uncleared; writing to RBI for clearance of the same.

269


From the above, it is observed that there are four sources of receipts against remittance into bank (RIB). For all the receipts made during the month, RIB is debited and corresponding credit is given to final heads by concerned units / section. For TC, RIB is debited and minus debit to unit concerned is given.

All the MRT and MR are fed in the HQ A/C office (ACCESS), wherein the summery of MCR is generated. Also, all the summary for the day of cash extract is fed in excel sheet to arrive at cash as per cash extract for month.

Challans for various sources are fed in the AFRES and the same are reconciled with MCR and Cash extract / TC figures to ensure that there are no missing challans. Any discrepancies noticed are brought to the notice of cash office and is rectified.

The total figure in the cash extract, MCR and TC should reconcile with the Debit booked under RIB during the month.

Credit portion consists of the following parts:

i. Remittances through challans ii. Remittances through e-payment, iii. Remittances through RTGS iv. Challans consists of remittances made by cash office to the bank. v. E-payment consists of crediting the amount under electronic system carried out by SBI, Jabalpur and SBBJ, Kota. vi. RTGS system also includes electronic remittances carried out by Union Bank of India, Rewa.

Entire statement of remittances made are consolidated by the SBI, Focal Point Branch and sent to FA & CAO‘s office daily.

Day wise receipts of bundles from focal point branch are feeded in the AFRES separately for challans, e270

Books Section

payment Jabalpur, e-payment Kota and RTGS – UBI Rewa.

Below is a flow chart, which explains the flow of whole remittance system:

Day wise credits accorded by the focal point as per daily bundle are entered manually into a register. This daily data is reconciled manually with the monthly statement sent to FA & CAO’s office by the focal point. This monthly statement is called Detailed Monthly Summary (DMS). The focal point branch also sends the day wise receipt to Reserve Bank of India for crediting into the Railway Account. RBI to FA & CAO advises the amount so credited day wise by RBI into the Railway Account through a statement called RBI memo. 271


Reconciliation between RBI memo and DMS

After all the challans, e-payment data and RTGS Data are fed in the AFRES, is ensured that the AFRES data reconciles with the DMS sent by the focal point.

While preparing the RJV every month from RBI memo, it is ensured that the amount so credited by RBI reconciles with the DMS sent by focal point branch.

The reconciliation between RBI memo with DMS AND DMS with AFRES data are done in an excel sheet. Differences, if any between the AFRES and DMS are brought to the notice of SBI, Focal Point, who rectifies the data through a separate bank authority called GAD. After rectification through GAD, RBI does the necessary rectification in the RBI Memo in the forthcoming month. Once all the debit and credit challans are fed, matching of individual challans is done in the AFRES. The factors taken into consideration during the reconciliation are:

a. Station Code b. Bank Code

c. Challan Number d. Amount

List of unmatched debit and credit challans extracted out of reconciliation are matched manually.

3.C

CHEQUES & BILLS RECONCILIATION.

A statement of cheques issued is prepared with the help of source data available in the section. The paid cheques data is available at two levels; at the Divisional level and the HQ level. The FA & CAO /BOOKS provides the data in the soft and hard copy through ATC to concerned Division. This data is matched with the paid cheques data available in the division. A statement of mis-match items is generated to find out the

(Authority; FA& CAO/JBP LETTER NO : WCR/ACS-HQ/EFFY/ LTR-CIR./08-09 DATE 18.02.2009)

272

Books Section

reasons only for those cheques, which do not tally. After finding out the reasons the issued/paid data is modified suitably and matched again to see there is no item mismatching. While finding out the causes for mis-match extra debits are either transferred to respective units or RBI is advised to withdraw debits from the debit scroll accordingly. The basic documents from which reconciliation is done are:-

a) Cash Book (CHEQUES & BILLS FIGURE) b) Computerized cheques summary prepared by Cheques Section c) JV figures

3.D 3.E 3.F

The reconciliation is on the basis of cheques issued statement prepared by converting the source data of cheques section. The database of cheques section is based on cheques numbers fed before printing. Therefore, the figures appearing under head “00867002” of cheques and bills represents cheques issued figure and should be equal to total of that. The figures appearing under head “00867003” cheques and bills represents cheques cancelled or paid cheques figure. The differences of the allocation head “00867002” & “00867003” represent the balance figure in the head “cheques & Bills”. PAO SUSPENSE:

PAO SUSPENSE head is operated to settle the transaction with central government departments. AG SUSPENSE:

AG SUSPENSE is operated to settle the transactions with the state government departments. Remittance accounts with postal and defence:

This head of account is operated to record the transactions originated in the books of railways and finally adjustable in the books of defence and postal department. Advance 273


3.G

schedules are sent to the account officer of these departments showing the number, particulars and amount of each voucher in respect of which debit is to be transferred to RBI. On receipt of the memo of clearance necessary adjustments are made in the final head of accounts. Reserve Bank Deposit:

This head is operated upon to record transactions in connection with remittance made into bank/ cheques encashed and transaction settled with non railway government department. The adjustments are made through RBI. The payment to a retired railway employee is arranged by nationalized bank on the basis of pension payment authority issued by the railway. The debit in the respect of pension payment is raised by the bank through RBI which is entered into the debit side of abstract “L” and credit side to reserve bank deposit. Before the closing of accounts each month the balance under these heads is reconciled with general books and schedule is prepared showing the transaction with RBI. The balance under this head is closed to government at the end of year.

4)

Transfer Transactions:

The transactions which are settled by way of book adjustment between two separate accounting units within the same railway or between two different railways are known as Transfer Transactions and needs to be kept distinct from normal transfers.

The following heads of accounts are operated to record and adjust transfer transactions. a. b.

274

Transfers, Railway Revenues}

Transfers, Railway Capital} for transactions involving revenue transactions in the Capital accounts books and vice versa

Books Section

c. d. e.

f.

Transfer “A” Divn. to transfer the transactions originated in one Accounting unit to the other accounting unit to which It pertains.

Transfer “B” Divn to transfer the transactions originated in one Accounting unit to the other accounting unit to which It pertains.

Transfer “C” Divn to transfer the transactions originated in one Accounting unit to the other accounting unit to which It pertains. Transfers Railways to adjust the transactions between zonal railways and Production units “A” Rly

“B” Rly

“C” Rly

Transfers Railways to adjust the transactions between zonal railways and Production units



Transactions arising in the accounts of one accounting unit which are adjustable in the accounts of another unit within same railway or between two railways should be transferred to the letter by either operating the head “Transfer Divisional” or “Transfer Railway” depending on the case may be. A transfer certificate is prepared and issued in form “A 406” in triplicate if a foreign railway is involved or in duplicate if the same Railway is involved. Transfer certificate against a particular accounting unit should be serially numbered. Every accounting unit should ensure that there should be no breaks in serial numbers and if any break is noticed, the concerned should call for missing transfer certificate immediately. Two separate registers are maintained for recording outward transactions and inward transactions. Before the closing of cash book for the month various section prepares TC and 275


5)

handed over to books section for entering in register and dispatch to responding unit. In case of inward transactions, Books section enters the same in inward register and gives it to the concerned section for acceptance. In order to ensure that the adjustments are carried out concurrently both by the originating and responding unit, it is necessary to carry out the adjustment without delay. Any delay in the adjustment will not only adversely affect the budgetary control but will also lead to distortion of accounts. In order to ensure that no transaction remain unadjusted for long, the accounting units meetings to reconcile transfer transaction are held at the end of accounting quarters of June/ September and at the end of three bi monthly endings November, January, and march. The above reconciliation meetings are held at zonal railway HQ and also zonal railway should conduct a separate a transfer divisional meeting for the same. During the meeting the representative of zonal railway meets together and reconciles the figures. The balances under transfer transactions or transfer divisional or brought to nil at every quarter / bi-monthly ended month. Disputed items if any finally adjusted in March account. The purpose of closing the balances to “NIL” is to ensure that the transaction pertaining to a financial year is adjusted in the very same year. This also ensures that all expenditure is booked to final head of account so that accounts of railway reflect true state of affairs. Reconciliation of Pay Master’s Cash Book

Reconciliation of pay master’s cash book is done to ensure that the cheques favoring chief cashier for disbursing of the bills to the parties included in the Abstracts of bills (A.1107) popularly known as CO-7 BILLS, have correctly been accounted in the chief cashier’s cashbook. This reconciliation is done on monthly basis and purpose of this reconciliation is to ensure that the amount of bills passed in a month does not exceed the exchequers provided for. 276

Books Section

6)

DEBT HEAD REPORT: form ‘A’ 749

A Report on the balances under the “Debt Heads” and “Remittance Heads” is prepared after the closing of March accounts by various units at Divisional, Workshop and Construction level in the form ‘A’ 749.The reports are then sent to the FA & CAO for compilation from where it is submitted to Railway Board. This report is called the Debt Head Report. The report contains the outstanding balances with explanations for important variations from the previous year’s balances and comments on the efficiency of the balances at the end of the year under review.

Following ‘Debt’ and ‘Remittance Heads’ are reviewed in the ‘Debt Head Report’:

i) ‘F’ Loan and Advances ii) ‘I’ Small savings.

iii) ‘J’ Reserve Funds. iv) ‘K’ Deposits and Advances. v) ‘M’ Remittances.

Adjustment Accounts with Postal Department.

Adjustment Accounts with Defense Department.

vi) PAO Suspense and AG Suspense.

In addition, the following information is also furnished in respect of Deposit Miscellaneous:

(a)

(b)

Opening balance as on Ist April, receipts and disbursements during the year and closing balances on 31st March under each classified heads of Indian Railway Deposits,

Receipts and Disbursements during the year under ‘Cash’.

The report is based on an analysis of various balances enumerated above. The report, besides reviewing outstanding balances, furnishes explanations for major variations form the previous year’s balances and comments 277


7)

on the efficiency of the balances at the end of the year under review. Certificates are furnished by the concerned in regard that the balance shown in the report agrees with the General books and are supported by details. A copy of the same is given to Audit for scrutiny and acceptance of the report. Preparation of exchequer outgo monthly statement:

For the purpose of maintaining a concurrent record of Cash outgo the net amount of bills passed for payment as entered in the Abstract of Bills should be posted regularly in a manuscript register classified by Sub-head of Demand and Suspense head (eg. PF, Unpaid, Dep. Misc., F-Loans & Adv. Etc.). The register should be totaled monthly Demand wise and Suspense head wise and sent to FA&CAO.

( Para 1137 A1)

8)

Preparation of Approximate and Actual Account Current (monthly):

An Account current is simply a statement showing the receipt and disbursement of an accounting circle, duly classified under the prescribed heads of account.

(Para 324 A1)

9) 278

Approximate Account Current is a statement of Approximate Receipt and disbursement and is submitted by 5th of the following month that to which figure relate. In this Account Current cash figure of adjustments are taken. Approximate Account Current is prepared and sent to Railway Board through FA&CAO and onward figures are communicated to Finance Ministry to decide Ways & Means of Govt. for the month. DEPOSIT UNPAID:

When the Pay office returns bills to the Accounts office there may be some unpaid items in them. The amounts so unpaid will be remitted by the pay office in to the Bank accompanied by a statement in Form A –1959 that is known as the unpaid

Books Section

10)

11)

12)

list. All items of unpaid wages shall, as a rule, be credited to “Deposit Unpaid Wages” (Para 316-A- I). Items of other than wages are credited to respective deposits such as Dep “E” etc.

PASSING PAY ORDERS RELATING TO UNPAID WAGES AND MAINTENANCE OF UNPAID WAGES REGISTER. Unpaid wages list is prepared in three foils, one is retained by the cashier who prepares it as his office copy, the other is sent to the Books section in the Accounts office and the third copy is sent to bill preparing unit. These statements are filed & numbered consecutively to facilitate detection of any missing sheets at any time. When a claim is subsequently received for any sum remaining unpaid through a pay order or C 4 the same is verified with the unpaid wages register so maintained and the fact of the subsequent payment is noted against the entry of the relevant item. The pay order for payment from Unpaid wages should be prepared after it has been ascertained from the Pay department that the amount has not already been disbursed by cashier out of his Imprest or floating cash i.e. C 4. RECONCILIATION OF UNPAID WAGES:

The reconciliation of unpaid wages is done separately for debit and credit portion. The credits are reconciled with the amounts remitted by the cashiers to Railway credit reflected in the Cash slip, with the totals of the unpaid statements received individually from cashiers. The debits are reconciled with the totals of CO7 passed and amount accounted under Deposit Unpaid Wages in the general books. Recoupment of cash Imprest (C4s) of cashiers:

After remitting unpaid salary/wages amount in to Bank / Treasury by the cashier but before sending of salary/wages bills to Accounts office. If any employee approaches to cashier with proper witness etc. the cashier out of cash available with him can make payment to the concerned employee by preparing C-4 voucher. After making payment by the cashier 279


13)

it is sent to Accounts office for recoupment of payment made by cashier out of cash available with him. Accounts office by giving a remark against the unpaid list item of employee concern. EMD- passing of pay orders and maintenance of register:

Earnest Money Deposit (EMD) submitted by the contractors at the time of tendering in the form of paper security or deposited/remitted at station should be maintained in manuscript register. It shoud be released /refunded on issue of Letter of Acceptance etc. since as per latest Railway Board guidelines EMD should not be converted into part security deposit.

14) SURPRISE CHECK OF THE CASHIERS (PARA 1989 A1)

a. Check physical cash and note down the denomination. b. Check revenue stamps on hand and note down the value. c. Check C4s i.e. cashiers’ Imprest pending with accounts. d. Check whether there is any P-28 and note down the value. Ensure that P-28s are those, which are not already included in the C4s. e. Value of extracts viz. On behalf payments should be examined and value noted down. f. Dues from cashiers, if any may be noted down. g. Short passed/ Excess passed may also be noted. h. Item no.1 above may include soiled notes, keep separate denominations for soiled notes while recording item no: 1. i. Check stamps on pay sheets and note down the value. 280

Books Section

j. Now, total cash available with the cashier should be equal to sum of serial nos. 1 to 9. k. Check the private cash declared by the cashiers with the Register maintained for the purpose. l. Check the safe seal Register. m. Checking of the undelivered cheques with the cashier. n. The checking of checks or miscellaneous receipts deposited by the various parties remitted properly.

After exercising the above checks cashier’s account (P6) is prepared.

Examine the vouchers and identify the unpaid amounts in Col.4.

Extract from Cashier’s Cashbook subsequent to last P4 (Bill returning advice) accepted by DC/Pay and his liability is adjusted. Extract PMR No and amount in column no. 2 and 3 (column no. 1 is for date). Ensure no voucher is older than one month from the date of PMR.

Identify vouchers of different accounting units and show distinctly.

v. Having examined the above, record pending liability month wise and accounting unit wise accordingly.

vii. If any pending paid vouchers are on hand for which P4 has been prepared but not given to DC/Pay, work out his liability minus receipt vouchers is equal to current liability. viii. Compare the amount under column no.4 with Sr.No.10 and certify.

281


In addition to above, the following points may also be checked.

A. Cashiers’ Ledger should be checked to tally the liability of the cashier on that day. B. C4 Recoupment Register should be checked to ensure the number of C4s given for recoupment by the cashier. C. Vouchers handed over by the cashiers to stations for payment should be checked with handing over summary and handing over form (HO) duly signed and acknowledged by SM to whom it is handed over. D. Cheques District should not have cheques on hand for more than five working days. E. Returned Cheques Register should have entries of returned cheques. The returned cheques should be entered in outside ledger. Accounts will get NIL credit. F. Cheques district should not have liability for more than one month. 15)

Accountal of Misc. Cash Receipts.

Every Pay office prepares a summery of all miscellaneous cash receipts and sends it to the HQ along with all relevant challans. HQ Booking section on receipt of the summary sorts them out according to accounting unit-wise and sends the vouchers to concerned accounting units to whom it pertains along with an ATC giving credit to concerned accounting unit and debiting HQrs. The ATC is accompanied with all the relevant vouchers and date-wise totals of the amount received. This section on receipt of the vouchers feed the details of the vouchers there in date-wise, allocating the different heads of account to which it pertains to. Then a JV is prepared to account for such miscellaneous receipts by crediting respective heads of account like EMD, Abstract Z etc. and giving (-) credit to TDHQ.

282

Books Section

16)

Imprest – Passing of First/Enhanced Imprest: Para 1050 - FI

An Imprest is a standing advance of a fixed sum of money placed at the disposal of a branch officer to meet the petty office expenses and emergent unforeseen expenditure. Pay orders relating to such Imprest are received in accounts office for payment. The following points are kept in mind before passing such pay orders.

a) That the Pay orders are accompanied with the copy of sanction of the competent authority duly attested by him. b) It has the concurrence of the Associate finance branch.

Having been verified the above stated points the pay order is passed by debiting the head ‘00867201’ i.e. “Permanent Cash Imprest” and crediting head ‘00867002’ i.e. “Cheques & Bills”. If one time imprest is to be converted into regular imprest or if the amounts of the imprest is to enhance the same procedure is followed.

17)

Maintenance of Capital and Revenue Ledger: F 310 A1

The Ledgers both Capital and Revenue (Capital Ledger for capital transactions and Revenue Ledger for transactions revenue in nature) are posted monthly after closing of the journal. The ledger reflects various heads of accounts recording all receipts and charges of the accounting circle and also show the progressive balances under those heads at the end of each accounting period.

These figures are the general books figures and are reconciled with the individual balances reflected under each head of account.

283


18) Check List for Inspection of Cash and Accounts of a Cashier:

When the Accounts staff with the gazetted officer visit Cash office for inspection they should ensure the followings:

(a) Cash Balance of the Cashier has been done by actual count.

(b) The bills in hand have been checked with reference to the summary of bills. (c) Any bill has been retained beyond the prescribed period. (d) The payment has been property witnessed as observed in the body of the bills. (e) A summary of unpaid bills has been prepared. (f) The cash Balance has tallied with the amount of unpaid bills in hand. (g) While determining correct book balance and the balance of Cash-in-Hand on the date of verification the following factors, have been considered or not : I. Challan-In-Transit: (The amounts of challan issued by D.C. but received / taken into the Cash Book by Cashier)Verification should be done taking into account the last complete challan only. II. List-In Transit: (Credit taken by the cashier on submission of paid vouchers to the D.C. but not scrutinised and returned to Accounts office by D.C.. List in transit should be reconciled with D.C.’s Balance by the inspecting official. III. Dues retained by D.C. : ( Full amount corresponding to the bills debited to the cashier both in D.C.’s balance sheet and in Cashier’s Cash Book not made over to 284

Books Section

the cashier) such dues are to be treated as Assets in Cashier’s Account. IV. Payment made through Debit Forms: It is to be ascertained whether Debits forms have been issued properly and on getting the bills back after payments, the Debits Forms have been cancelled .Whether Debits Forms are issued serially / sequencially, whether the officials receiving payments through Debit Forms have signed the Debit Forms under proper seal and signature, Debit Forms payment should be shown in the Assets side of the Cashier’ s Balance Sheet. V. Cash on account of M.O.Returned: Money order register to be checked and amount returned included in the liability of the cashier. VI. Amount shown as unpaid in the list of paid vouchers : Has Cashier deposited unpaid amount to D.C. through M.R. or not ?. VII. Amount given by D.C. in advance of corresponding Bills:- Do the accounts of cashier include this amount in his liability ? The amount is a liability of the cashier because the foil has not been received through D.C.’s challan. 19)

Procedure for Test-Check:

The Test check should, apart from verification and thorough examination of facts and figures embodied in various documents brought under test check, be directed to an intelligent scrutiny to find out whether the clerk(s) 285


understand their duties and rules governing them and do the work allotted to them diligently and whether there is any tendency to do the work casually. Test check should particularly be conducted at least once in a month by SO and all officers. The test checks should not be of routine nature rather they should focus on system improvement, procedural lacuna and lapses. The underlying idea should be efficient disposal without any violation of rules and procedures. The checks should also reflect the updated skills of the officer.

[Para 803 A1]


SR NO.


1

2

286

The result of test check should be recorded systematically in a manuscript register in the form given below:- Extent of Test check prescribed 3




6




Books Section

The observations as a result of the test check should be clearly indicative of the appraisal by the checking authority of the quality of performance of the clerks whose work came up for test check. 19.2) Test- Check of registers:

Another important item of test check is the inspection of different registers by the Gazetted Officers. The intervals at which different registers maintained in Accounts Offices should be put up for inspection by Officers.

19.3) Periodicity of submission of Test- Check oregister to Officers:

Important tips for AFRES Users:-

•

Each and every user in the section including S.S.O. is allotted separate ID name and password. Supervisor of the section will ensure periodical changes of password for each and every user of Books section. The entry of such effect is to be kept in the manuscript register opened for the purpose. The period for changing in password will be at the interval of at least 15 days .

•

After customization of AFRES programe, SSO (In charge of the section) will run Audit trail of their section. This is to be run at the interval


287


of 15 days and obtain signature of concerned officer. SSO will be given rights for accessing and running Audit trail.

•

It is also to be ensured by supervisor of the section that the ID and password is not to be shared with any other person.

•

If there is any modification in any rules/ programme due to Railway Bd’s policy/circular /orders or due to any other reasons the modification in the AFRES programe be done after proper testing of such changes is carried out and results of such effect should be recorded before final implementation of application.

Note: The detailed procedure of working on AFRES is annexed as AFRES USER MANUAL.

288

Chapter 10

CHECK LIST FOR WORKSHOPS 1.

Workshop Manufacturing Suspense (WMS)

• •

Whether WGR is being reviewed monthly. Work orders with no booking for more than three months are reported to CWM. • Monthly review of deposit works on hand/bookings and custody of deposits. • Cases of bookings on closed work orders. • Para 1224 W on Review of WMS to be followed. • Analysis of unit cost of repairs should be carried out. Review of Balance under “Workshop Manufacture Suspense Account”. The balance under the ‘Workshop Manufacture Suspense Account’ should be reviewed monthly to see:-

(1)

(2)

(3)

(4)

that all the items are current and have been undertaken after the issue of a proper work order, under the sanction of a competent authority; that the details consist of nothing else except labour, material and work on cost charges expended on unfinished jobs or completed jobs awaiting adjustment; that there are no credit items in the detail of balance and if there are any such items, they are noted for immediate adjustment;

that in the case of jobs undertaken for outsiders, a sufficient deposit has been made, where such a deposit is required by rules, and on the first appearance of a work it is seen that an estimate is on record, containing the extra percentage charges required under the rules, and accepted by the party ordering the work; and 289


(5)

that there are no inefficient balances and the periodical adjustments in respect of “overcharges and undercharges” under the oncost, manufacture and repair work orders are carried out regularly as laid down in Chapter X and the outstandings are not allowed to accumulate.

The results of the review should be put up to the Financial Adviser and Chief Accounts Officer at least once a year.

•

2.

at the end of the financial year.

STORES • AAC to be arrived at with due diligence. •

•

•

•

•

290

The Suspense Heads are certain intermediary/ adjusting heads of accounts operated in Government Accounts to reflect transactions of receipts and payments which cannot be booked to Final Head of accounts due to lack of information as totheir nature or for other reasons. These heads of accounts are finally cleared, when the amount under them is booked to their respective final heads of accounts, by ‘Minus Debit’ or ‘Minus Credit’ suspense heads. If these amounts remain un-cleared,the balance under the ‘Suspense Heads’ would go on accumulating and would not reflect Receipts and Expenditure of Indian Railways (IR) accurately. The balances under each of the Suspense Head should be reconcilied and cleared

ABC analysis of stores should be carried out.

Issue note (SHOP/Stores)/Copy Pairing is upto date with NIL differences. Whether Register maintained.

of

Provisional

Oldest items awaiting adjustment.

Adjustments

Store Suspense should be as minimum as possible.

Check List for Workshops

•

Analysis of non-moveable and less movable items is being done periodically.

•

3.

GATE ATTENDANCE

•

•

•

•

M&P procurement is done with due diligence.

OPENING/CLOSING Procedure of Gates Whether any Loopholes ? Clocks are in order or not ?

Whether GA Cards Punched Four Times.

•

•

•

4.

INCENTIVE

•

•

•

•

•

•

•

Number of people treated absent after Window Gate Time is Over (30 minutes/3 minutes). Absentee Register maintained or not

Additions/Deletions of attested or not

Number of Duty Certificates issued/Shops having highest Duty Certificates & their out turn. Excess Time Cards (Plus Cards) issued and whether any shop showing regular or excessive issue of plus cards. Whether all completed job cards arrive within 48 hrs. of completion of job.

Whether any shop regularly showing profit >50% and has allowed time reviewed.

Whether allowed time has been revised due to improvement in technology through new machines.

Idle Time Bookings – How much on account of tools/ want of work ? Whether deductions done from supervisors salaries ? (2% limit)

Systems of preventive machine maintenance is in place. Whether Master Planning Card made available to WAO & all allowed time Checked in Rotation. 291


5.

OTHER ITEMS

•

•

•

•

•

•

•

•

•

292

Non Stock items Review/Conversion to Stock Shop floor Verifications/Custody to Stock. Fluctuations in Unit Cost to be watched.

Leakages of scrap to be eliminated through qualification from point of generation of Scrap. Sensitivity Analysis is to be done for inspection of Workshop.

Lateral transfer of store may be indicator of poor planning.

Review of staff should be done from time to time taking into account the work load and off loaded work. Asset Register should be updated from time to time.

Special studies should be carried out on different topics every month.

Chapter 11

CHECK LIST FOR WORKSHOPS

1.

The Suspense Heads are certain intermediary/adjusting heads of accounts operated in Government Accounts to reflect transactions which cannot be booked to Final Head of accounts due to lack of details at that point of time. These heads of accounts are cleared, when the final head is known, by ‘Minus Debit’ or ‘Minus Credit’ to the suspense heads.

IR operates the following main Suspense Heads:

Suspense Accounts Operated by Railways

Under Revenue Receipts:

Under Revenue Expenditure: Under Capital Expenditure:

i. Traffic Account, and ii. Demands Recoverable. i. Demands Payable, and ii. Miscellaneous Advance- Revenue i. Purchase Suspense ii. Stores Suspense

iii. Workshops Manufacture Suspense iv. Miscellaneous AdvancesCapital

For Adjustment of Remittance Transactions:

i. Reserve Bank Suspense, ii. Remittances into Bank iii. Cheques and Bills etc

For settlement of inter governmental transactions: i. PAO Suspense

2.

Revenue Receipts

For recording the revenue receipts, two suspense heads namely Traffic Account and Demands Recoverable are operated. If these amounts remain un-cleared, the balance under the ‘Suspense Heads’ would go on accumulating and 293


3.

4.

5. 6.

7.

294

would not reflect the Receipts accurately. Large outstanding amounts under different suspense heads in traffic accounts reflect unrealized earnings, therefore, blockage of the capital. Traffic Account

Traffic Account is a Suspense account operated for the purpose of recording the revenue earnings on accrual basis in a month’s account to which they pertain and also for watching the progress of their realization. The outstanding balance represents unrealized earnings therefore exhibited on the Asset Side in the Balance Sheet. Freight Outstanding

“Freight” is the charges levied for the carriage of goods including transshipment charges. Freight Outstanding will arise when the way-bills / invoices have been accounted for in the books of Railways (Station Balance Sheet), but freight charges have not been realized. Generally around 50 percent of unrealized earnings of railways are on account of Freight Outstanding. Therefore, fortnightly review is necessary. Admitted Debits

Every debit raised by the Traffic Accounts office on the station on account of error in charging fare or freight, short remittance of cash etc. accepted by the station is known as Admitted Debits. Objective Debit

Every debit raised by the Traffic Accounts office on the station on account of error in charging fare or freight, short remittance of cash etc. but not accepted by the station and kept pending for want of clearance through withdrawal is known as ‘Objected Debit’. Wharfage and Demurrage

Indian Railways Commercial Manual defines “Wharfage” as the charge levied on goods for not removing them from the

Traffic Suspense

8.

9.

10.

railway after the expiry of the free time for such removal. “Demurrage” means the charge levied for the detention of any rolling stock after the expiry of free time, if any, allowed for such detention. Monthly reviews should be carried out to clear the outstanding. Demands Recoverable

Demands Recoverable is a suspense head operated to bring into the books of Accounts on accrual basis all the dues to the Railways within the same financial year which were not realized during the year. The closing balance under this head represent unrealized amount in the form of outstanding Demands Recoverable which will be exhibited on Assets side of the Balance Sheet of Indian Railways.

There should be proper mechanism to watch whether bills are properly raised and realized during the year of incurrence of expenditure.

Review of Bills Recoverable register should be conducted monthly . Remittance Transactions

Transactions between the Ministry of Railways and Other Ministries or States for which the accounts are not maintained by themselves are ‘Remittance Transactions’. Two suspense heads (i) Remittance into Bank and (ii) Cheques and Bills are maintained. Remittances into Bank

This is a Suspense Head operated to record the remittance of earnings into the Banks. This Suspense head is debited with amount of all Remittance Notes by crediting the Appropriate Revenue Service head. Each Bank with which the railway has transactions sends daily statement showing the amounts deposited by the various departmental officers on behalf of Railways. The Credit Scrolls should be checked immediately 295


on receipt of the counterfoils of cheques and Cash Remittance Notes. At the end of the month the total amount of the remittance acknowledged by the Bank will be debited to the Head ‘Reserve Bank Deposits (Railways)’ by contra credit to ‘Remittance into Bank’. The balance under this suspense head, therefore, represents the amount deposited into bank but not acknowledged by them. The balance under this head i.e. Remittances into Bank should always be a Debit Balance. Para 444 of Indian Railways Code for Accounts Department Volume I envisages that reconciliation is to be done every month by FA&CAO.

11.

12.

The Audit had revealed that the negative balances under this head were mainly due to unidentified and unlinked credits, non reconciliation of balances and receipt of credit towards freight charges through e-payments before accrual of debit . Inter - Governmental Transactions

For the settlement of inter-departmental and inter governmental transactions arising in the books of Railway Accounts Offices, PAO suspense head is operated. Outstanding Debit balance under this Suspense Head would mean that payments made on behalf of other Accounts Offices are yet to be recovered. Outstanding Credit balance under this Suspense Head would mean that payments have been received by the PAO on behalf of other PAOs which are yet to be paid. The balance under this head is exhibited on the Liabilities side of the Balance Sheet. General Observations

The increase in suspense balances was found mainly due to the following reasons:

•

•

296

Importance of clearance of suspense balances was not fully realized by the Executive/Accounts Departments.

Expenditure was allocated indiscriminately to suspense heads without making efforts to allocate the same to the final heads of account.

Traffic Suspense

•

•

•

•

The year wise break up of balances under various suspense heads were not maintained as envisaged in the Code.

No proper action was taken to adjust them as early as possible either by debit to the relevant final head or by transfer to other accounting units to which they pertained.

Incomplete or incorrect postings in the suspense register without sufficient particulars/details etc. resulted in difficulties in linking the items at the time of clearance. Continued and effective review was not done to clear the items resulting in items becoming old and difficult to clear.

12. Points to be noted :

1.

2.

3.

The suspense balances under ‘Traffic Account’ on account of freight outstanding, admitted debits, objected debits, wharfage/demurrage and demand recoverable need to be kept at minimal as it has an impact on earnings of the Railways.

Monitoring mechanism for clearance of old suspense balances needs to be strengthened at Zonal Railway level. Corrective steps need to be taken for clearance of very old items.

Correct posting with sufficient details should be made in the Suspense Registers. Item should be placed under “Suspense” or written off with the Sanction of the competent authority, if necessary.

“The important and significant areas of internal checks have been covered in this Hand Book. However, for detailed procedure, railway codes and process manual notified from time to time by Railway may be referred while examining the proposals.”

297

Railway Hand Book on Internal Checks

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