government of india india meteorlogical department ministry of earth sciences reference guide on

GOVERNMENT OF INDIA INDIA METEORLOGICAL DEPARTMENT

MINISTRY OF EARTH SCIENCES

REFERENCE GUIDE ON

ADMINISTRATION, FINANCE & PROCUREMENT

Office of the Director General of MeteorologyMausam Bhawan,

Lodhi Road, New Delhi

SEPTEMBER 2011

Reference Guide on Administration, Finance & Procurement

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Edited by

Sh. Ram Prasad Lal

Compiled by

Shri Ramesh ChandShri V. K. Soni

Disclaimer: This is the compilation of presentations made during the training programme. However the relevant government rules may be kept in view. In case, if any instruction documented here is in conflict with GOI orders, the GOI orders will prevail. However this material can be used as a guiding material and cannot be quoted as reference document.


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FOREWORD

I am happy to note that the Budget & Planning Section of India Meteorological Department HQ is bringing out a Reference Guide on Administration, Finance & Procurement. This is first time that such a document has been prepared in India Meteorological Department.

2. Being a Scientific Department large number of Workshops, Symposia & Conferences were organized during past, covering diverse themes as sustainable development, Aviation Meteorology, Weather Forecasting, Tropical Storm and local service storm forecasting, Radar meteorology, risk management in Agriculture and Positional Astronomy etc. But few in house training were conducted during past on administration, procurement & stores. This was the weak area where continuous training is required in the department.

3. Needless to say that the driving force has been a constant endeavour to improve the services. The process has started by imparting various training to the Project Directors. Sensing the need of training in the field of administration, procurement & stores an orientation training programme for 3 days was conducted for Project Directors and officials dealing with Plan Projects during 02 May, 2011 to 04 May, 2011. On the basis of this training Budget & Planning Section at India Meteorological Department HQ, New Delhi took initiative to prepare a reference guide for guidance as per existing rules and regulation.

4. I congratulate the Budget & Planning Section for taking this initiative in preparing this document. I am sure that this reference guide will be useful for day to day administration, Procurement, Expenditure management, Policy decisions in the light of corresponding circumstances helping us to adjust the roadmap of future as per needs.

AVM (Dr.) Ajit TyagiDirector General of Meteorology


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PREFACE

It has been observed that Project Directors are facing problem in project formulation, procurement, expenditure management due to reason for not following the procedures properly regarding Administration, Finance & Procurement as per Government of India Guidelines issued under various rules & regulation. The reason behind this is the lack of training of IMD officers in related field. Therefore a one week orientation training programme for Project Directors and officials dealing with plan projects at RMCs was conduct from 02 May 2011 to 4 May 2011.

The manual on Administration, Finance and procurement have been prepared in conformity with the applicable directives contained in the new Government Financial Rules, 2005, Delegation of Financial Power Rules at present etc. Concerted efforts have been made to covers all major aspects of Budget and Planning, Procurement, finance and account management, project management, works, store management etc so that to introduce quality, competitions and execution in public administration. This is a compilation of presentation during the training programme.

This document has seven chapters.

1. Budget & Planning2. Procurement3. Finance & Account Management4. Project Management5. Works6. Store Management7. Miscellaneous issues

All chapters have been covered by concerned officers of this department. Chapter 2 deals with all aspects of procurement. Chapter 3 deals with finance and account management under which processing of bills by DDO and functioning of Cash and accounts sections in IMD have been broadly presented. Chapter 4 deals with project management guidelines for formulation appraisal and approval of Govt. Plan funded project schemes. Chapter 5 deals with guidelines for submission of works related proposal to DGM office by the field offices. Chapter 6 deals with store management and disposal. Chapter 7 deals on the medical rules and regulations as on date.

All IMD OFFICES are advised to follow the relevant government rules issued by government of India/ Ministry etc. In case of any reference material in the document is in conflict with Govt. of India orders, the government of India orders will prevail.


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CONTENTS

Chapter 1Budget & Planning Page No.

1. Budget & Accounting Procedure 1 - 82. Guidelines for Formulation, Appraisal and Approval of Government Plan

Funded Projects/Schemes 9 - 133. Delegation of Financial Power 14 - 21

Chapter 2 Procurement

4. Financial Aspects of Procurement 22 - 275. Procurement of Goods and Services 28 - 316. Presentation on RFP and Tender Document 32 - 367. Duties & Responsibilities of project directors in procurement 37 - 388. Check List For Submission of Procurement Bills 39 - 42

Chapter 3Finance and Account Management

9. Processing of bills by DDO 43 - 4510.Presentation on Functioning of Cash & A\C Section in IMD 46 - 54

Chapter 4Project Management

11.Role of Project Director, Leadership & Motivation in Project Management 55 - 60

Chapter 5Works

12.Submission of works related proposals 61 - 62

Chapter 6Store Management

13. Store management and disposal

Chapter 7Medical

14.Medical Facilities 70 - 72


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CHAPTER 1

BUDGET & PLANNING

A government budget is defined as a legal document that is passed by the legislature, and approved by the chief executive-or President. The two basic elements of any budget are the revenues and expenses. Unlike a pure economic budget,Government Budget is designed for optimal allocation of scarce resources taking into account larger sociopolitical considerations.

The main objective of Government financial management is to determine how well the financial and resource management responsibilities have been discharged. This is based amongst others, on a comparison of accomplishments against the fiscalpolicies and the time bound Government programmes. These fiscal policies and programmes determine the Budget of the Government, through which the amounts of revenue to be raised and the allocation of sums for the respective Governmentprogrammes and purposes are set. Budgeting therefore, involves determining for a future time period on what is to be done and achieved, the manner in which it is to be done and the resources required for the same. It requires the broad objectives of the Government to be broken down into detailed work plans for each programme and sub-programme, activity and projects for each unit of the Government organization.

Budget preparation in India is an iterative process between the Ministry of Finance/Planning Commission and the spending Ministries. It is a combination of top down approach with the Ministry of Finance and the Planning Commission issuingguidelines or communicating instructions to spending Ministries, and a bottom-up approach, wherein the spending Ministries present requests for budget allocation. Some of the salient features of Union Budget are as follows-

1. Budget is prepared on Cash Basis: Whatever is expected to be actually received or paid under proper sanction during a financial year (including arrears of the past years) should be budgeted in that year.

2. Rule of Lapse: All appropriations granted by the Parliament expire at the end of financial year and no deduction of unspent budget can be appropriated for meeting the demands in the next financial year. Thus, all unutilized funds within the year ‘lapse’ at the end of the financial year.

3. Realistic Estimation: It is essential that the provisions in the budget should be restricted to the amount required for actual expenditure. The Finance Ministry isinterested in seeing that the Departments do not obtain more/less money than what they really need. If a Department is allotted funds which it does not need, it will deprive some other Department from getting the required resources.

4. Budget to be on Gross/Net Basis: Budget is prepared both on the gross basis and net basis. The gross figures of receipts and expenditure of the Government are reflected separately for voting by Parliament and the Departments/Ministries are normally not permitted to utilize the receipts or deduct expenditure in their budget proposals. Net basis of budgeting is done in case of some Grants e.g. Defence


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Ordnance Factories, and Department of Posts wherein the departmental receipts are allowed to be utilized and outlays on gross as well as net basis are reflected.

5. Form of Estimates to Correspond to Accounts: It is essential that the form in the budget estimates correspond to that of Government accounts as it is from theseaccounts, that the performance of the Government is judged and the estimation forsubsequent year made. If these are prepared in different forms, financial control will also become difficult.

6. Estimates to be on Departmental Basis: Each Department prepares estimates for receipts and expenditure separately. Generally one Demand or Grant is allocated in respect of each Ministry/Department. In case of certain large Departments/Ministriesmore than one Demands for Grants is allocated in terms of General Financial Rules.

The Budget is presented to the Parliament in such form as the Finance Ministry may decide after considering the suggestions, if any, made by the Estimates Committee. Broadly the Budget documents depict information relating to receipts andexpenditure for three years i.e.-

i. Through Budget Estimates (BE) of receipts and expenditure in respect of Budget year(current financial year);

ii. For the year preceding the Budget year (current year) through Revised Estimates(RE); andiii. Actuals of the second year proceeding the Budget year.Budget thus sets forth the receipts and the expenditure of the Government for three

consecutive years.

BUDGET MANUAL OF THE GOVERNMENT OF INDIA

Budget Division of Department of Economic Affairs, Ministry of Finance, brought out a Budget Manual in September 2010. The Budget related instructions and guidelines were till now available in the form of executive instructions and guidelines etc. including the annual Budget Circulars. These, however, did not cover many facets of the Budget making process. There was, therefore, a felt need for a comprehensive Manual to bring together the entire Budget related features and activities

The Budget Manual is a comprehensive document which captures the content of the Union Budget as well as the procedures and activities connected with the preparation of the Annual Budget. The processes and guidelines have been simplified and put in a logical sequence for easy comprehension. The Annexes have been added wherever required for providing a more holistic perspective on related matters. This Manual unravels the detailed processes involved in the entire gamut of Budget preparation. It isalso expected to bring about greater transparency on the subject.

This Manual provides deeper understanding to the officials of Ministries/Departments of their roles and responsibilities with respect to preparation of documents and statements included in the Budget. It is expected to serve as a guidebook for uniform administration of the Budgeting procedures and practices in the Government of India including the line Ministries and Departments.


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PLANNING PROCESS:

Planning Commission plays an important role in the budgetary process and the public finances of the country. The Planning Commission, besides formulating and monitoring development Plans, advises the Union Government regarding the desirable transfer of resources to the States, essential for development outlays. PlanningCommission not only prepares the Plans but through the years over its annual scrutiny, at the time of considering the annual Plan, of overall position of resources and their application, it has played an important role every year in formulation of the Budgets of the Centre and the States.

The Planning Commission holds extensive discussions with the Central Government and the States, which submit in advance their own estimates of resources and expenditure for the Plan period. Planning Commission prepares the Five Year Plans taking into account the resources that would be available and the needs for development. (The Five Year Plans are approved by the National Development Council). The discussions in the Planning Commission with the Government takes place at two levels, viz. (i) officials interest and (ii) between Ministers and Planning Commission.

Thereafter, the Planning Commission finalizes the draft Five Year Plan for the country, which is placed before the National Development Council. After approval by the Council, the Plan is placed before the Parliament. Within the framework of the Five Year Plan, each year’s Plan (Annual Plan) is separately considered and finalized through procedures as mentioned at (i) and (ii) above. The size of the Annual Plans of the Centre and the States are finalized on the basis of these discussions. The Centre’s contribution in the shape of loan and grant for a State’s Annual Plan is also determined.The Annual Plans of the Centre and the State are recast within the ceilings fixed in these discussions and the necessary budget provisions made as per the Annual Plan thus finalized.

The Planning Commission prescribe each year the form and the manner in which proposals are required to be submitted to them for determining the Plan allocations for the ensuing year. The Financial Adviser in each Ministry / Department of the CentralGovernment will accordingly call for requisite data from the estimating authorities, public sector and other enterprises under the control of the Ministry / Department, etc. The approved Plan allocations will be communicated by the Planning Commission to theCentral Ministries / Departments, indicating the total Plan outlay approved for each scheme / organization and the extent to which it is to be met from extrabudgetaryresources and from provisions in the Demands for Grants.

Based upon the Gross Budgetary Support (GBS) package for the Plan schemes conveyed to the Planning Commission by the Ministry of Finance for that particular year, decisions on the allocation to various Ministries and Departments is conveyed to the concerned Ministries/Departments and the Ministry of Finance, Budget Division for inclusion in the Budget for the ensuing financial year.


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STRUCTURE OF GOVERNMENT ACCOUNTS

In accordance with Constitutional requirements Government accounts are maintained in the following three categories:

Part I Consolidated FundPart II Contingency FundPart III Public Account

CONSOLIDATED FUND OF INDIA (Part-I):

Under Article 266(1) of the Constitution of India, all revenues received by the Government of India, all loans raised by the Government by issue of treasury bills, loans or Ways and Means advances and all moneys received by the Government inrepayment of loans shall form one consolidated fund to be titled the " Consolidated Fund of India". Divisions Under Consolidated Fund of India-

Revenue Account, Capital Account and Debt,Loans & Advances: Expenditure and Receipts Therein:

The Consolidated Fund of India has the following two divisionsRevenue AccountCapital Account

Revenue Account- Expenditure/Receipts: The Revenue Account deals with theproceeds of taxation and other receipts classed as Revenue and expenditure met there from.

Capital Account-Expenditure/Receipts: The Capital Account deals with expenditureincurred with the purpose of either increasing the concrete assets of durable nature or of reducing recurring liabilities. It is logical otherwise to meet Capital expenditure from borrowed funds, the liabilities in respect of which are spread over a number of years, as the benefits arising from Capital expenditure flow over a period of years. CapitalAccount also includes various types of Capital Receipts. The Capital Account comprises of the following sections:

a. The section ‘Receipt heads (Capital Account)’ deals with receipts of a Capitalnature which cannot be applied as a set off to Capital Expenditure;

b. The section ‘Expenditure heads (Capital Account)’ deals with expenditure incurredwith the object either of increasing concrete assets of a material and permanent character or of reducing recurring liabilities. It also includes receipts of a Capital nature intended to be applied as set off to Capital expenditure; and

c. The sections ‘Public Debt’ and ‘Loans and Advances’, comprise of loans raised and their re-payments such as internal debt, external debt and their recoveries.

For Budgeting purposes, the distinction between Revenue expenditure and Capital expenditure is of crucial importance, for which uniform principles are followed both at the Centre and in the States. The Capital account also includes loans raised by Government and their repayments and loans and advances paid by the Government and their recoveries.


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ACCOUNTING SYSTEM:

The Government Accounts have necessarily to comply with the budgetary structure of the country. Since budgets in India are on an annual basis, governmental transactions are also finalised in the accounts on an annual basis. However, theGovernment Accounts of each financial year are kept open for a certain period in the following year for adjusting transactions which took place in the previous financial year.

The government accounts in India are kept on a cash basis. Therefore, only actual receipts and payments during the financial year are taken into account with no outstanding liabilities or accrued income included. All cash appropriations lapse at theclose of the financial year.

SIX TIER ACCOUNTING CLASSIFICATION AND WHAT EACH TIER SIGNIFIES:

The Budget of Government is linked to the accounts and Government transactions accounted for under the Consolidated Fund, Contingency Fund and the Public Account of India.

CLASSIFICATION SYSTEM:

Each Division in the Consolidated Fund and the Public Accounts is divided into sectors, which may in some cases be further divided into sub-sectors and then into the six tiers of accounting classification. The number of classification in the Detailed Demands for Grants are not allowed to go beyond the standard six tiers indicated as under-

1. Major Head- 4 digits (Function);2. Sub-Major Head- 2 digits (Sub-Function);3. Minor Head- 3 digits (Programme);4. Sub-Head- 2 digits (Scheme);5. Detailed Head- 2 digits (Sub-Scheme); and6. Object Head- 2 digits (Object Head or Primary Units of Appropriation)

LIST OF MAJOR AND MINOR HEADS OF ACCOUNTS:

Based on the classification into Revenue and Capital divisions, the transactions are grouped into sectors which are further sub-divided into sub-sectors and Major Heads of account. The major heads normally indicate within each sector/sub-sector thebroad functions of a particular department of Government.

In the four digit codes allotted to the major heads, the first digit indicates whether the major head is a Receipt head/ Revenue expenditure head/ Capital expenditure head or a Loan head. The last three digits are the same for corresponding major heads in Revenue receipts section/Revenue expenditure section/Capital receipts/expenditure section and Loans and Advances section. The Receipt Major


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heads are assigned the block 0020 to 1999, Expenditure Major Heads on Revenueaccounts from 2011 to 3999, Expenditure Major heads on Capital accounts from 4001 to 5999 while all Capital receipts are classified under Major head 4000. Major heads under Public debt is from 6001 to 6004 and those under loans and advances/inter-statesettlement and Contingency Fund from 6001 to 8000 and the Major heads under Public Account from 8001 to 8999. In the loan section Major heads have been opened with reference to functions and purposes instead of the beneficiaries.

The Sub Major heads are opened under a Major Head to record those transactions which are of a distinct nature and of sufficient importance to be recorded exclusively, but at the same time allied to the function of the Major Head.

The Major and Sub-Major heads are subdivided into Minor heads. The minor heads correspond to programmes or broad groups of programmes. It is output oriented rather than organization or input oriented. The classification upto the Minor Head level are prescribed by the Controller General of Accounts in consultation with the C&AG and is common to the Central and State Governments.The complete list of Major and Minor Heads of Account along with the Correction Slips therein are available at the website of the Controller General of Accounts (CGA) at cga.nic.in.

Sub Head/Detailed Head/Object Head

Sub Head represents schemes, the detailed head represents Sub-Schemeswhile the Object Head represents the objects/items (e.g. Pay, DA, HRA, Rewards, Gratuity, etc.) on which the expenditure is incurred. Each of these levels has been allotted a two digit code. Wherever it is not feasible to break up the objects of expenditure into such details, the codes provided for aggregates of certain items may be used instead for computer processing.

For example, where it is not possible to indicate Pay, DA, HRA, CCA etc. separately, the code for salaries may be used for representing the aggregate of these items. The Object Heads have been prescribed under Government of India’s Ordersbelow Rule 8 of Delegation of Financial Power Rules. The power to amend or modify these object heads and to open new Object Heads rest with Department of Expenditure of Ministry of Finance on the advice of the Comptroller and Auditor General of India.The Budget Heads exhibited in estimates of receipts and expenditure framed by the Government or in any appropriation order should conform to the prescribed rules of classification in accordance with Rule 74 of the General Financial Rules.

IMPORTANCE OF OBSERVING CORRECTNESS IN CLASSIFICATION CO-RELATING TRANSACTIONS AS CLASSIFIED IN THE BUDGET/ACCOUNTS WITH THE FUNCTIONS: Keeping in view the form of accounts prescribed under the Constitutional provisions under the advice of C&AG, the Detailed Demands for Grants presented by the Ministries to Parliament, should also adopt the same six tier numericcodification pattern.


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FLOW OF GOVERNMENT ACCOUNTS

The Civil Account Manual contains detailed instructions and procedures relating to payments made by PAOs, CDDOs of Civil Ministries/ Departments of Central Government and accounting, compilation, consolidation of annual account etc. These instructions cover most of the facets thereof and include standard forms of various accounts registers/ records/returns to be maintained and/or submitted by such offices.


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PREPARATION OF ANNUAL ACCOUNTS

STATEMENT OF BUDGET ESTIMATES (FINAL):

After the pre-Budget meetings are over, and the approved ceilings for expenditure, as finalised in these meetings, are communicated including ceilings for Plan and Non-Plan expenditure (The Revenue and Capital expenditure break up is finalized within the concerned Ministries/Departments by the Financial Advisers) the Financial Advisers are required to prepare the Statement of Budget Estimates (Final)

NOTES ON DEMANDS: The Notes on Demands for Grants appear in Expenditure Budget Volume-2. These are intended to depict a brief summation of the budget allocations as appearing in the Expenditure Budget Volume-2. Hence, these arerequired to be brief, to the point and should be linked to the item for which the Budget allocations have been reflected. Further and more elaborate detailing on schemes can be made in the Expenditure Budget Volume-1.


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GUIDELINES FOR FORMULATION, APPRAISAL AND APPROVAL OF PLAN SCHEMES FORMULATION

Presentation by Ram Prasad Lal Director ( Budget & Planning)

GFR Rule 78 describes the procedure for Plan or Non plan Expenditure : Plan expenditure representing expenditure on Plan outlays approved for each scheme or organisation by the Planning Commission and indicating the extent to which such outlays are met out of budgetary provisions shall be shown distinctly from the other (Non-Plan) expenditure in the accounts as well as in the Budget documents.

In pursuance of the need felt by the Government to reform investment approval and implementation procedures, the Government had set up a Committee in September, 2001 to examine the existing procedures and suggest measures to simplify and expedite the process. The Committee divided its task in two parts, Part-I concentrating on issues that arise from the conceptualization of the project to the stage of investment approval, and Part-II covering all implementation and operational issues starting from the stage of investment approval till the commissioning of the project.

Rigorous project formulation and appraisal have a major bearing on the relevance and impact of projects as well as on their timely implementation. The Committee has identified indifferent quality of project formulation and appraisal as major factors which contribute to bottlenecks at the implementation stage and consequential time and cost over-runs. Failure to identify constraints in the availability of land, inadequate environmental impact analysis and lack of consultation with stakeholders at the time of project formulation can retard the implementation and impact of the project at a later stage. Additional time and effort spent at the project formulation and appraisal stage would be time well-spent and result in qualitative improvement in terms of ultimate project impact.

After having considered the matter carefully, the following guidelines are laid down for formulation and appraisal of Government funded plan schemes/projects, covering all sectors and Departments.

Guidelines for Formulation, Appraisal and Approval of Government Plan Funded Projects/Schemes

Government have prescribed, from time to time, procedures/mechanisms fortaking up public investment/expenditure programmes that are viable from the socioeconomic point of view, avoid thin spreading of resources and/or multiplicity ofimplementation structures and channels and facilitate simple, speedy, efficient andstreamlined decision making. With the commencement of the XII Plan period, Guidelines on the subject will be issued afresh, so as to rationalize the Scheme of delegation further, align it more closely with the rapidly changing economic environment, empower Ministries/Departments further for undertaking investment


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programmes and make the entire procedure more responsive and resilient in ensuring timely and well-informed decision making.

FEASIBILITY REPORT (FR) The FR should focus on analysis of the existing situation, nature and magnitude

of the problems to be addressed, need and justification for the project in the context of national priorities, alternative strategies, initial environmental and social impact analysis, preliminary site investigations, stake holder commitment and risk factors.

The FR should establish whether the project is conceptually sound and feasible and enable a decision to be taken regarding inclusion in the Plan and preparation of a DPR.

The FR should present a rough estimate of the project cost. Consultation with stakeholders should be held to ensure involvement of stakeholders in the project concept and design.

IN- PRINCIPLE APPROVAL OF PLANNING COMMISSION

The Administrative Ministry should send the FR to the Planning Commission for ‘in-principle’ approval, to enable the project/scheme to be included in the Plan of the Ministry/Department.

The Administrative Ministry should prepare the DPR for the project/scheme after obtaining ‘in-principle’ approval of the Planning Commission.

The various stakeholders in the project should continue to be associated while preparing the DPR.

The services of Experts/professional bodies may be hired for preparation of the DPR, if considered necessary.

PREPARATION OF DPR & EVALUATION

The DPR must address all issues related to the justification, financing and implementation of the project/scheme.

The Terms of Reference (TOR) for preparation of the DPR should cover all aspects of the generic DPR structure.

Evaluation arrangements for the project, whether concurrent, midterm and/or post-project, should be spelt out in the DPR.

It may be noted that continuation of projects/schemes from one Plan period to another will not be permissible without an independent, in depth evaluation.

GENERIC STRUCTURE OF THE DPR

Context/background Problems to be addressed Project Objectives Target beneficiaries Project strategy


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Legal Framework Environmental impact assessment On-going initiatives Technology issues Management arrangements

1. Means of Finance and Project Budget: This section should focus on means of finance, evaluation of options, project budget, cost estimates and phasing of expenditure.

2. Time frame: This section should indicate the proposed ‘Zero’ date for commencement and also provide a PERT/CPM chart, wherever relevant.

3. Risk analysis 4. Evaluation: This section should focus on lessons learnt from evaluation of similar

projects implemented in the past. 5. Success criteria: Success criteria for each Deliverable / Output of the project

should also be specified in measurable terms to assess achievement against proximate goals.

6. Financial and economic analysis 7. Sustainability: Issues relating to sustainability, including stakeholder commitment,

operation and maintenance of assets after project completion, and other related issues should be addressed in this section.

CONTINUATION OF ON-GOING SCHEMES FROM XI TO XII PLAN

At the beginning of each Five Year Plan detailed guidelines are issued by Ministry of Finance after the advise and consultation with Planning Commission of India. The guidelines for 12th Five Year Plan are yet to be notified. Based on instructions of 11th

Five Year Plan following procedures are likely to be followed during 12th Five Year Plan.

For continuation of the Schemes in the XII Plan, the Schemes are subjected to evaluation through an independent, impartial and reputed agency and the evaluation reports put through a rigorous scrutiny with regard to performance in the XI Plan and recommendations with regard to the following:

Whether the Scheme needs to be continued in XI Plan or dissolved forthwith; In case it is to be continued, then:

o Need for improvements;o Phasing of Expenditure in the XI Plan for each component of the Scheme;o Setting of physical and financial milestones/targets for the XII Plan for

each component.o The administrative Ministry can approve the continuance of the scheme

for the XII Plan period, if and only if:o (a) No major change in the content or parameters of the scheme is

proposed; any change in basic parameters, ( e.g., change in objectives, quantum, pattern and extent of subsidy, user fee, delivery mechanism, population coverage / beneficiary definition, eligibility conditions /criteria).


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o (b) The projected requirement of funds for implementing the Scheme over the Plan period is within the outlay approved by Planning Commission;

CONDITION FOR EXERCISING DELEGATION OF FINANCIAL POWERS

The delegation of financial powers contained in this OM will be exercised only where necessary/requisite funds are available in the Annual Plan and the Five Year Plan outlay as per the Phasing of the Project/Scheme. The powers will continue to be governed by procedural and other instructions issued by Government from time to time, e.g., General Economy Instructions.

INSTITUTIONAL STRUCTURE FOR APPRAISAL OF PLAN SCHEMES

Standing Finance Committee (SFC) (25.0 to < 100 .00 Cr)

ChairpersonSecretary of the Administrative Ministry/DepartmentMember Financial Advisor of the Administrative Ministry/Department Joint Secretary in Charge of the Subject Division Representative of the Planning Commission, Department of Expenditure and

any otherMinistry/Department that the Secretary/Financial Advisor may suggest can also be invited, asper requirement.

INSTITUTIONAL STRUCTURE FOR APPRAISAL OF PLAN SCHEMES / PROJECTS

Expenditure Finance Committee (EFC) (100.00 to < 300.00 Cr)

For proposals costing less than Rs 300 Crore

Secretary of the Administrative Ministry/Department ChairmanSecretary (Planning Commission) or his representative MemberSecretary (Department of Expenditure) or his representative MemberFinancial Advisor of the administrative Ministry/Department Member - Secretary

For proposals costing Rs 300 Crore and above

Secretary (Department of Expenditure) ChairmanSecretary (Planning Commission) or his representative MemberSecretary of the Administrative Ministry MemberFinancial Advisor of the administrative Ministry/Department Member - Secretary


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APPROVAL LIMITS FOR ORIGINAL COST ESTIMATES


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Delegation of Financial Power to Director General of Meteorology

Presentation by Ramesh Chand Director(Budget)

Delegation of Financial Power to DG, IMD

In exercise of the powers vested in Secretary, MoES under Delegation of Financial Power Rules and in terms of Rule 13(2) of DFPR, Secretary, MoES in partial modification to the earlier OM NO.GW-50000/SFS dated 28th Nov.,2008 on the subject, hereby enhances the financial power to the Director General of Meteorology, IMD to Rs.5 crores for all the items (24 items) of expenditure mentioned therein except for following, where approval of Ministry would be necessary:

Any case of resultant single tender (i.e. single tender or effective single tender after Technical Evaluation) or

Any order not placed on OEM or Any order to foreign principals where their Indian Agents are not

registered/enlisted with DGS & D or Holding any international Conferences/Workshops/Meetings/Seminars etc or Entering into any international agreement or contract for technical collaboration &

consultancy services or Entering into any national agreement or contract for technical collaboration &

consultancy services whose total value exceeds Rs.2.00 crores or Write-of-looses or Re-appropriation of funds from one budget head to another.

The delegated powers shall be subject to the following Concurrence of Finance Officer (FO) shall be obtained in all the cases covered

under delegated powers of DGM. The Director General of Meteorology shall be responsible for ensuring that the

delegated powers are subject to the observance of the procedure and restriction laid down in the General Financial Rules, Delegation of Financial powers Rules and other orders issued by the Ministry of Finance , Central vigilance commission or other ministries from time to time.

All orders with regard to ban on creation of posts, ban on filling of vacancies etc. issued by the Government will be applicable. Clearance from concerned ministries, like Ministry of Works and Housing, Department of Economics Affairs etc. will have to be obtained as hitherto.

*For cases covered under delegated powers of DGM, if Fo does not agree with theproposal or if FO is on long leave/tour then such cases may be sent to Controller of Accounts, MoES for consideration/concurrence whose office is stationed in IMD complex.


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*Since the powers of JS&FA shall be exercised by the Finance Officer, therefore, instead of the diary number of JS&FA, the sanction orders would carry the diary number of the F.O.

Item Covered Under OM NO.GW-50000/SFS dated 28th Nov.,2008 Bicycle Electric Gas & Water Charges Fixture & Furniture (Purchase & Repair) Freight & Demurrage Hire of office Furniture fan etc Land (Acquired from/ through state Govt.) Legal Charges Motor Vehicles-Maintenance upkeep & repair. Municipal Rate & Taxes

Power to sanction works including Petty Works & Repair Postal & Telegraph Charges Printing & Binding Publication Rent – ordinary office accommodation*

o Where the accommodation is entirely utilized for the officeo Where the accommodation is used partly as office and partly as residenceo For residential and other purposes

Repairs and removal of machinery (Where the expenditure is not of a capital nature)*

Staff paid from contingencies i) Purchase of stationary stores* ii) Local purchase of petty stationary stores iii) Local purchase of rubber stamps and office seals Stores* Stores required for the works Other stores i.e. stores required for the working of an establishment, instruments,

equipments and apparatus Supply of uniforms, badges and other articles of clothing etc. and washing

allowance Telephone charges Computers (including personal computers)* Hire and maintenance of computers of all kinds* Power to incur miscellaneous expenditure Sanction of schemes* Administrative approval and expenditure sanction to Capital works and Major

Works*


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Note: GFR rules in respect of Works & DFPR rules in respect of Printing.

Power to sanction works. However (GFR Rule 125,126,127,128 &129) Says126(1) - A Ministry or Department at its discretion may directly execute repair works estimated to cost up to ` 10 lacs after following due procedures.126(2) A Ministry or department , may its discretion assign repair works estimated to cost above ` 10 lacs & below 30 lacs to any public works organization.126(3) All original works costing up to ten lakhs may be assigned by the Ministry or Department concerned to a Public works Organizations as defined in Rule 126 (2).126(4) All original works estimated to cost above Rupees ten lakhs and repair works estimated to cost above Rupees thirty lakhs may be got executed through a Public Works Organisations as defined in Rule 126(2) after consultation with te Ministry of Urban Development.

No power under rule 13(2) DFPR shall be redelegated in respect of:

Creation of posts; Write-off of losses; Reappropriation of funds;

.

List of Major, Minor, Sub Head and Detailed Heads of Account operated by IMD

MAJOR / SUB-MAJOR HEADS 3455 Meteorology (1)

MINOR HEADS 001 Direction and Administration003 Training004 Research and Development (3)101 Satellite Services (will include space and ground

equipment exclusively provided for meteorology)102 Observatories and Weather Stations104 Instrumentation (2)200 Other Meteorological Services798 International Cooperation800 Other expenditure

Notes:(1) This major head will record expenditure on all meteorological services includingAviation, Agriculture Meteorology, Hydrometeorology, Seismological services andAgency Services.(2) This minor head will record expenditure on development, manufacture, calibrationand repairs of the various instruments.(3) These minor heads will record expenditure on Research and Training not formingpart of other minor heads.


17

MAJOR / SUB-MAJOR HEADS - 5455 Capital Outlay on Meteorology

MINOR HEADS (Programmes)001 Direction and Administration003 Training101 Satellite Services102 Observatories and Weather Stations200 Other Meteorological Services800 Other expenditure

SUB HEAD / DETAILED HEAD

Director General of Meteorology Training R & D Services Space Meteorology Observatory Services Operation & Maintenance Meteorological Services Agromet Advisory Services Aviation Meteorology Airborne Platforms & FDP World Meteorological

Organization

International Seismological Centre

Externally Aided Projects World Bank Aided Projects Departmental Canteen Seismic Hazard and Risk

Evaluation Modernization of IMD Common Wealth Games &

Dedicated Weather Channel

The object heads under Revenue -3455 Meteorology

01 Salaries02 Wages03 OTA06 Medical Treatment11 DTE12 FTE13 Office Expenses 14 Rent Rates and Taxes16 Publication17 BCTT21 Supplies & Material

24 POL26 Advertisement & Publicity27 Minor Works28 Professional Services30 Other Contractual Services31 Grant-in-Aid32 Contributions33 Subsidies34 Stipend50 Other Charges70 Deduct Recoveries

The object heads under Capital-5455 Capital Outlay on Meteorology

51 Motor Vehicle52 Machinery & Equipments53 Major Works


18

List of Existing Object Head in IMD as on 1st January 2011

S.No.

Object Heads

Code Definition Description

1 Salaries 01 Salaries, Sumptuary Allowance

Salaries – Will include pay, allowances in all forms of personnel including honoraria and leave encashment except travel expenses (other than leave travel concession). This object classification will also be utilized for recording expenditure on emoluments and allowances of Heads of States and other high dignitaries including sumptuary allowance)

2 Wages 02 Wages Wages – Will include wages of laborers and of staff at present paid out of contingencies

3 Overtime Allowance

03 Overtime Allowance

Overtime Allowance – Is the amount paid to a Non-Gazetted Government servant for performing official duties beyond office hours in addition to his working hours.

4 * Medical Treatment

06 Medical Treatment

Medical Treatment – Will include amount paid towards medical reimbursement to Government Servants/ Pensioners.

5 Domestic Travel Expenses

11 Travel expenses, conveyance Allowance

Domestic Travel Expenses – Will cover all expenses on account of travel on duty in India including conveyance and fixed travelling allowances but excluding leave travel concessions which would be part of salaries. This will also include TA/DA to non-official members on account of travel in India.


19

6 Foreign Travel Expenses

12 Travel Expenses, Deputation/Travel abroad of Scientists

Foreign Travel Expenses – Will cover all expenses on account of travel on duty outside India including deputation of Scientists abroad. This will also include the expenditure on TA/DA to non-official members going on tour abroad.

7 Office expenses

13 Office expenses Office expenses – Will include all contingent expenses for running an office such as furniture, postage, purchase and maintenance of office machines and equipment, liveries, hot and cold weather charges (excluding wages of staff paid from (contingencies), telephones, electricity and water charges, stationery, printing of forms, purchase and maintenance of staff cars and other vehicles for office use as distinct from vehicles for functional purposes like ambulance, vans, etc. This will also include POL expenses on vehicles for office use.

8. Rents, Rates, Taxes

14 Rents, Rates and Taxes

Rents, Rates and Taxes – Will include payment of rent for hired buildings, municipal rates and taxes, etc. It will also include lease charges for land

9 Other Administrative expenses

20 Hospitality/Entertainment expenses, gifts, expenses on conducted tours

Other Administrative expenses – will include expenditure on Departmental canteen hospitality/entertainment expenses, gifts and expenditure on conducted tours, expenditure on conferences/seminars/workshops etc. and expenditure on other training programmes.

10 Supplies and Materials

21 Materials and Supplies, Stores and equipment

Supplies and Materials – Will include expenditure on materials and supplies, stores and equipment etc.


20

11 Minor works 27 Minor works, Maintenance

Minor works – Will also record expenditure on repairs and maintenance of works, machinery and equipment(<50 Lacs)

12 Professional Services

28 Payments for professional and special services, fees to staff artistes

Professional Services – will include charges for legal services, consultancy fees, fees to staff artistes, remuneration to the examiners, invigilators etc. for conducting examinations, remuneration to casual artistes, by the all India Radio, Doordarshan and all other types of remunerations. It will also include payments for services rendered, supplies made by other departments such as Railways, Police etc. a distinction being made in respect of supplies made, services rendered for running of an office in which case the expenditure will be recorded under office expenses.

13 Other Contractual services

30 Service or commitment charges, notional values of gifts received

Other Contractual services – Will include expenditure on service or commitment charges and notional value of gifts received etc.

14 Advertising & Publicity

26 Advertising & Publicity

Commission to agents for sell & printing of Publicity material.Expenditure on exhibitions.

15 Motor Vehicle

51 Purchase & maintenance of Transport

Purchase & maintenance of Transport

Thus Standard 15 digit numeric code is in detailed demand of grants. These codes are allotted by comptroller-General of Accounts. All Expenditure to be booked in 15 digit numeric code only


21

Details of Revenue Receipt under 1475, Civil Deposit under the head 8443 and Deduct Recovery under the 3455. (Proper Head of Account)

S.No. Name of Items Head of A/C1 Revenue Receipt

a) Sale/Supply of Datab) Sale of equip.c) Testing & Calibrationd) Misc.

147500202000000

2 Civil DepositAmount received as deposit of Bidder, EMDAmount which is to be refunded to parties etc.

844300103000000

3 Deduct RecoveryAmount received from:-DVCIAFONGCCATC BamrauliBBMB

345500102010170

CHAPTER 2


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PROCUREMENT

Every Ministry / Department spends a sizeable amount of its budget forpurchasing various types of goods to discharge the duties and responsibilities assigned to it. It is imperative that these purchases are made following a uniform, systematic, efficient and cost effective procedure, in accordance with the relevant rules and regulations of the Government. The Ministries / Departments have been delegated powers to make their own arrangements for procurement of goods under the Delegation of Financial Power Rules, which have to be exercised in conformity with the orders and guidelines issued by competent authorities coverings financial, vigilance, security, safety, counter trade and other regulatory aspects. Without purporting to be a comprehensive compendium of all statutory provisions, rules, regulations, orders andguidelines on the subject of public procurement, the “MANUAL ON POLICIES & PROCEDURES FOR PURCHASE OF GOODS” prepared by Ministry of Finance, Department of Expenditure, Government of is intended to serve as a portal to enter this vast area and draw attention to basic norms and practices governing public procurement.

To achieve what has been stated in the above paragraphs, it is essential that the purchase officials be provided with all the required rules, regulations, instructions, directives, and guidance on best practices in the form of a Manual. This Manual is intended to serve this objective. This manual contains guidelines and directives concerning purchase of goods with public funds as well as some allied areas such as installation of equipment, operators’ training, after sales services, maintenance contract, etc. Relevant aspects of purchase management techniques have been incorporated in proper sequence under separate chapters. The text incorporated in each chapter has been highlighted with appropriate sub-heads. This arrangement will help the users to readily locate the desired subjects/sub-subjects.

GENERAL FINANCIAL RULES No expenditure can be incurred against a sanction unless funds are made

available to meet the expenditure by valid appropriation or re-appropriation. The government authorities have to comply with rules prescribed in the General

Financial Rules and the Delegation of Financial Power Rules in all financial matters.

In order to maintain proper control, the controlling officer obtains information on not only what has actually been spent from the grants but also what commitments and liabilities have been and will be incurred against them.

COMPETENT AUTHORITY ‘Administrative approval’ of a scheme, proposal or work. - is the formal acceptance

thereof by the competent authority for the purpose of incurring expenditure. ‘Competent Authority’- means, in respect of the power to be exercised under any of

these provisions, the President or such other authority to which the power is delegated by or under the General Financial Rules, 2005, Delegation of Financial


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Powers Rules, 1978 or any other general or special orders issued by the Government of India.

‘Head of Department’ - means an officer declared as such by Government. (As per list given in the Delegation of Financial Powers Rules).

ROLE OF DEPARTMENTS IN SPENDING AND CONTROL

‘Financial Adviser’- means an officer appointed by Government in a Ministry/Department to look after the matters related to financial advice, budget/ accounts, expenditure control/ audit etc. for and on behalf of Finance Ministry

The relevant administrative ministry has the main responsibility for ensuring that The expenditure is incurred for the approved purpose, it is within the sums allotted, it has been incurred under the authority competent to sanction it, and Due prudence has been shown in its incurrence.

REFERENCE TO BUDGET & PLANNING SECTIONHead of Account for expenditure should be approved before placing the order. Post facto allocation of Head of Account is against financial norms.If Head of Account needs to be changed the same should be approved by competent authority and concurred by F.O. IMD / IFD as the case may be.The status of Balance should be inquired from DDO who maintains the Appropriation Register. If the supply order is old and Head of Account no longer exist, the case should be processed through indenting unit.


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Financial Aspect of Procurement

Presentation by Sh. R. P. LAL Director (Budget & planning)

General Financial Rules (GFRs) are a compendium of general provisions to be followed by all offices of Government of India while dealing with matters of a financial nature. General Financial Rules were first issued in 1947 and were in the form of executive instructions. These were subsequently modified and issued as General Financial Rules, 1963.General Financial Rules, 2005 have evolved as a result of the wide consultations and extensive review. The rules have been simplified and put in a logical sequence for easy comprehension.

The Manuals on Policies and Procedures for Goods, Works and services have been prepared by Ministry of Finance in conformity with the applicable directives contained in the GFR 2005. Concerted effort have been made to cover all major aspects of procurement in these manuals in a user friendly manner taking into account the developments in the economy and need to introduce quality, competition and transparency in public procurement. Departments have to supplement these manuals by issuing detailed operating instructions to serve as practical instructions for their officers, evolve checklists to ensure completeness of examination of cases and customize the format to suit local/special needs.

Some other important and budget related Delegation of Financial Rules (DFPR) provisions are briefly as under-

GFR Rule 6, Effect of Sanction: It provides that no expenditure shall be incurred against a sanction unless funds are made available to meet the expenditure or liability by valid Appropriation or Reappropriation.

GFR Rule 8, Primary Units of Appropriation: This Rule lists the standardized list of the Primary Units of Appropriation or the Object Heads and the six tier classification system in the Government accounts.

GFR 2005: Rule 25. PROVISION OF FUNDS FOR SANCTION

(1) All sanctions to the expenditure shall indicate the details of the provisions in the relevant grant or appropriation wherefrom such expenditure is to be met.(2) All proposals for sanction to expenditure shall indicate whether such expenditure can be met by valid appropriation or reappropriation.(3) In cases where it becomes necessary to issue a sanction to expenditure before funds are communicated, the sanction should specify that such expenditure is subject to funds being communicated in the Budget of the year.


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PROCEDURE FOR COMMUNICATION OF SANCTIONS

GFR 2005: RULE 29. : All financial sanctions and orders issued by a competent authority shall be communicated to the Audit Officer and the Accounts Officer. (i) All financial sanctions issued by a Department of the Central Government which relate to a matter concerning the Department proper and on the basis of which payment is to be made or authorized by the Accounts Officer, should be addressed to him.(ii) All other sanctions should be accorded in the form of an Order, which need not be addressed to any authority, but a copy thereof should be endorsed to the Accounts Officer concerned.(iv) All financial sanctions and orders issued by a Department of the Central Government with the concurrence of the Internal Finance Wing or Ministry of Finance, as applicable, should be communicated to the Accounts Officer in accordance with the procedure laid down in Rule 25 of the Delegation of Financial Powers Rules, 1978, and orders issued there-under from time to time.

LAPSE OF SANCTIONS

GFR 2005: Rule 30. A sanction for any fresh charge shall, unless it is specifically renewed, lapse if no payment in whole or in part has been made during a period of twelve months from the date of issue of such sanction. Provided that -(i) When the period of currency of the sanction is prescribed in the departmental regulations or is specified in the sanction itself, it shall lapse on the expiry of such periods; or(ii) When there is a specific provision in a sanction that the expenditure would be met from the Budget provision of a specified financial year, it shall lapse at the close of that financial year; or(iii) in the case of purchase of stores, a sanction shall not lapse, if tenders have been accepted (in the case of local or direct purchase of stores) or the indent has been placed (in the case of Central Purchases) on the Central Purchase Organization within the period of one year of the date of issue of that sanction, even if the actual payment in whole or in part has not been made during the said period.

CLASSIFICATION OF TRANSACTIONS 15 DIGIT CODE

GFR Rule 72. : The six tiers of classification of transactions in Government Accounts are represented by a unique 15 digit numeric code.

Major Heads (4), Sub-major Head (2), Minor Heads (3), Sub Heads (2), Detailed Heads (2), Object Heads (2).

The Major Heads (comprising Sub-Major Heads) of account, generally correspond to functions of Government

The Minor Heads identify the programmes undertaken to achieve the objectives of the functions represented by the Major Head.

The Sub Head represents schemes,


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The Detailed Head denotes sub scheme Object Head represent the primary unit of appropriation showing the economic

nature of expenditure such as salaries and wages, office expenses, travel expenses, professional services, grants-in-aid, etc.

AUTHORITY TO OPEN A NEW HEAD OF ACCOUNT

The List of Major and Minor Heads of Accounts of Union and States is maintained by the Ministry of Finance (Department of Expenditure – Controller General of Accounts) which is authorised to open a new head of account on the advice of the Comptroller and Auditor General of India .

Ministries/ Departments may open Sub-Heads and Detailed Heads asrequired by them in consultation with the Budget Division of the Ministry of Finance. Their Principal Accounts Offices may open Sub/Detailed Heads required under the Minor Heads falling within the Public Account of India subject to the above stipulations.

The Object Heads have been prescribed under Government of India’sOrders below Rule 8 of Delegation of Financial Power Rules. The power toamend or modify these object heads and to open new Object Heads rest with Department of Expenditure of Ministry of Finance on the advice of the Comptroller and Auditor General of India.

Rule 52 of the GFR lays down provisions relating to the Responsibility for control of Expenditure,

Rule 53 of GFR, Maintenance of Liability Register for effecting proper control over expenditure: In order to maintain proper control over expenditure, a Controlling Officer should obtain from the spending authorities liability statements in Form GFR 6-A every month, starting from the month of October in each financial year.

The Controlling Officer should also maintain a Liability Register in Form GFR 6.

Rule 54 of GFR, Personal attention of the Head of Department / Controlling Officer required for estimating savings or excesses:A Head of Department or Controlling Officer should be in a position to estimate the likelihood of savings or excesses every month and to regularize them in accordance with the instructions laid down in Rule 56.

Rule 62 of GFR, Inevitable Payments:(i) Subject to the provisions of Article 114 (3) of the Constitution, money indisputably payable by Government shall not ordinarily be left unpaid.(ii) Suitable provision for anticipated liabilities should invariably be made in Demands for Grants to be placed before Parliament.


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The Secretary of a Ministry / Department who is the Chief Accounting Authority of the Ministry /Department shall(i) be responsible and accountable for financial management of his Ministry or Department.(ii) ensure that the public funds appropriated to the Ministry or Department are used for the purpose for which they were meant.(iii) be responsible for the effective, efficient, economical and transparent use of the resources of the Ministry or Department in achieving the stated project objectives of that Ministry or Department, whilst complying with performance standards. (viii) shall ensure that his Ministry or Department follows the Government procurement procedure for execution of works, as well as for procurement of services and supplies, and implements it in a fair, equitable, transparent, competitive and cost-effective manner;

As per the new charter of duties and responsibilities issued by the Secretary, Department of Expenditure, Ministry of Finance, as part of the Revised Redefined Charter for Financial Advisers, the following functions in relation to Internal Audit will be carried out by the Chief Controllers of Accounts as per the guidelines issued by the Controller General of Accounts from time to time-(i) The appraisal, monitoring and evaluation of individual schemes;(ii) Assessment of adequacy and effectiveness of internal controls in general, and soundness of financial systems and reliability of financial and accounting reports in particular;(iii) Identification and monitoring of risk factors including those contained in the Outcome Budget;(iv) Critical assessment of economy, efficiency and effectiveness of service delivery mechanism to ensure value for money; and(v) Providing an effective monitoring system to facilitate mid course corrections.

FORM GFR-6 : LIABILITY REGISTER


28

PROCUREMENT OF GOODS AND SERVICES

Presentation by Sh D.K. Nim F.O.(IMD)

Fundamental Principles of Govt. Procurement Availability of Fund for that purpose if Plan procurement Approval of Scheme/ Project to be seen before process in case of plan

procurement Specification, quality, quantity of goods Fair, Transparent and Reasonable Procedure Selected offer should meet all requirements Reasonability of Price Price Preference to SSIs Purchase Preference to CPSUs

Mode of Procurement

Without any quotation up to Rs.15000/- Through Purchase Committee of 3 members for Rs.15001/- to Rs.100,000/- Through Rate Contract of DGS&D Directly from firm at rate contract of DGS&D Advertised Tender Enquiry (ATI) for more than Rs.25 Lakhs value Limited Tender Enquiry up to Rs.25 Lakhs Single Tender Inquiry in case of No other firm/company manufactures the goods b) Emergent procurement c) Compatibility/suitability of Spare parts/machinery

Mode of Publicity of Invite

ITJ and at least One National daily along with uploading on website in case of ATI

Registered/Speed Post invitation letters to minimum 3 firms in case of LTI and uploading on website

Invitation letter to the firm asking quote in single inquiry General conditions/ Principles of Contract May withdraw, revise or modify his offer before its opening date and time All contracts shall be executed on behalf of the President Contract document should be invariably executed in case of turnkey works or

AMC, or provision of service No work of any kind should be commenced without proper execution of an

agreement Contracts should include provision for payment of all Taxes applicable


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Provision of Liquidity Damage

Provision of Warranty clause Provision of rejection of goods if not as per requirement/specifications Normally no extension to DP Essential Technical Particulars Scope of Supply including quantity required, end use Specification/ technical parameters Drawings, if any

Inspection Procedure

Requirement of training, Technical support, After-Sales service Qualification criteria of the tenders Self life of goods etc. Text of Tender Notice Description and Specification of Goods & Quantity Schedule and Terms of Delivery Cost of Tender document Place and Time of Sale of Tender document Place and Deadline for receipt of tenders Place, time and date for opening Amount and Mode of Bid Security (EMD) Place and time of Pre bid Conference, if required Opening of Tenders Should be opened at time and place given in document In the presence of authorized representatives Tender Opening officials to announce salient features of the tenders Every tender shall be numbered serially EMD and Performance Security EMD @ 2 to 5% from all bidders except those registered with NSIC, DGS&D,

concerned Ministry/ Department EMD is not essential for a contract value up to Rs.1 Lakh Form of EMD may be DD, FDR, Bank Guarantee Validity should be period of 45 days beyond tender validity May be forfeited if withdraws within the validity period May be forfeited if successful tender does not furnish Performance Security Refund after expiry of validity Or within 30 days after conclusion of contract Performance Security to be furnished within 21 days after notification of award Should be valid for 60 days beyond completion of project Forfeited in the event of breach of contract


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Refund after completion of Project within 60 days

Delivery Schedule Properly specified in unambiguous language Terms of Delivery to be mentioned viz. FOB, FOR, CIF, CIP as applicable All import contracts to be concluded on FOB/ FAS basis For any deviation (CIP, CIF etc) permission of Transport Ministry required Measures for Delayed Supply Extension of delivery with L/D Forfeiture of Performance Security Cancellation of Contract Imposition of other available sanctions

Payment Terms for Domestic Goods

FOR (Dispatch) 60% to 90% on proof of despatch FOR (Destination)/ CIP destination/ delivery at site – 100% on receipt of goods

Delivery with Installation & Commissioning

FOR (dispatch station) – 60% on proof of dispatch, 30% on receipt of goods at site by consignee and 10% on successful installation & commissioning

CIP (destination) / FOR destination – 90% on receipt of goods by consignee and 10% on successful installation & commissioning

Imported Goods Payment Where no installation & commissioning by supplier – 100% net FOB/ FAS against

shipping documents, inspection certificate (if applicable) If installation & commissioning are responsibility of Supplier – 80% to 90% net

FOB/ FAS against invoice and shipping documents Balance within 30 days of successful installation

Documents needed for Payment

Original Invoice Packing list Certificate of Country of Origin Certificate of Pre-dispatch Inspection Certificate of Insurance Bill of Loading/Airway Bill/Rail Receipt etc. Evaluation of Tenders Whether tenders meet Basic Requirements If not, declare unresponsive and to be ignored Points for which tender can be declared unresponsive The tender is unsigned The tender is not eligible


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Shorter validity Without the required authority letter from OEM Declined to give Performance Security Goods quoted are substandard Tenderer has not quoted for entire requirement Tenderer has not agreed to some essential conditions

Qualification Criteria

Responsive bids are to be examined for Qualification Criteria If not meets Qualification Criteria, not be considered further Evaluation of Price to include Taxes, duties etc. Price Reasonableness Parameters Last Purchase Price Current Market Price Price of Raw Materials required for production Receipt of Budgetary quote from different sources Award of Contract Before Expiry of Tender Validity period If validity expired, request to extend validity before awarding Ask to furnish Performance Security within 21 days Ask to accept unconditionally the contract within 15 days


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RFP AND TENDER DOCUMENT

Presentation on By S.K.Jain DDGM (P)

Instead of naming as RFP, document is to be named as document containing complete technical specifications, Terms of reference, List of deliverables.

(a)Specifications and allied technical details.

b)Terms of reference: Shall include Qualification criterion of bidder, delivery schedule of store(time may be taken from date of establishment of LC and not from the date of placement of supply order in case store is to be supplied from foreign country) and must be realistic for completion of project within delivery period itself, Warranty period after delivery, Schedule of Installation & Commissioning, AMC and spares if required. It must be clearly mentioned that AMC and spares are to be treated as main store (cost to be included in CST) or as optional items (cost to be excluded in CST).

(c) List of deliverables with complete specifications as per enclosed Performa must be submitted.

Document should not contain any commercial terms and condition. SAT and training in India if required may be included. In case FAT and foreign training is to be included, prior approval of MoES is to be taken by the division.

Document is to be submitted to the respective review committee by the consignee. Committee shall send it back to consignee with suggestions of modification, if any. Consignee shall submit it to DGM after incorporating the modifications for approval.

Following are the details of committees:For procurement value > Rs. 5.0 croresShri L.R. Meena, Sc’F (ISSD)’---- ChairmanShri K.C. Saikrishnan Sc”E’ (UI)--- Member Secretary

For procurement value >1.0 crore and upto Rs. 5.0 croresShri A.K. Sharma, Sc’F’(Sat Met)---- ChairmanShri B.M.S. Nayal, Director(CPU)-- Member Secretary

Further RFP>Rs.25.0Lakh and up to procurement value of 1.0 crore shall be submitted to DDGM(P) for vetting.

Approved document shall be submitted to CPU along with indent.

Indent duly filled is to be submitted in the enclosed Performa only and is to be signed by the Head of division. No column of indent is to be left unfilled.


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PERFORMA OF INDENT

Name of store : Quality RequiCategory of Store ( DGS&D or Other ) :If DGS&D, please provide R/C No.& Item NoDetailed Specification (Soft Copy) consisting of Complete technical specifications:Terms of reference :List of deliverables (as per enclosed format) :Copy of approval of Competent Authority :Estimated Cost : Copy of Budgetary Quotation :Annual Consumption :Stock in hand :Supply Pending :Delivery Period :Delivery Schedule if any :List of likely Suppliers :P.A.C : Availability of Funds during the current financial :Year Head of A/c Plan/ Non-Plan If plan, Name of Scheme under whichApproved (copy to be enclosed)16. Details of last supply order : a) Order No. and date : b) Qty Ordered : c) Suppliers Name d) Rate per Unit paid/ total value : e) Performance of last suppliers :17. Mode of Supply( Road/Air/Shipment :18. a) Address of Consignee : b) Address of users where store to be delivered20. Any other information :Signature of Head of DivisionFile No.Office/Division:Dated:


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FORMAT FOR LIST OF DELIVERABELS

Unit priceS.N.

(1)

Name of Item/

Store

(2)

Make & Model

(3)

Country of origin

(4)

Quantity

(5)

Base price(6)

Applicable taxes &duties

(7)

Total unit price

(8)

Total Price

(9) i:e(5x8)

TOTAL COST

In addition to above, following is also to be enclosed along with indent;Copy of administrative approval of the scheme under which procurement has been

proposed (if beyond financial power of DGM) or copy of approval of DGM(if within financial power of DGM)

Copy of budgetary quote of store (Preferable three but not less than two). Quotes should not be older than six months at the time of submission.

In case of item is to be procured on PAC basis, approval of Secretary, MoES must be enclosed.

In case of procurement of Laptops, procurement needs approval of Secretary MoES.Cost of store which is mentioned in indent must be realistic. Following factors may

be taken into account in this regard.(i)Last purchase price of same (or in its absence similar )items.(ii)Current market price of same (or in its absence similar )items. (iii)Cost analysis(Material cost, production cost, overhead and profit margins) (iv)Budgetary quotes received and enclosed.

Technical specifications with terms of reference approved by competent authority along with indent form is to be submitted to CPU for taking further action to invite tenders.

After receipt of indent form along with specifications and allied technical details , terms of reference ,list of deliverables, CPU shall takes action to invite tenders on LT/open tender basis depending upon the value of procurement. Procurement upto 25 Lakh is made on LT basis and above 25 Lakh on open tender basis. Open tenders are invited in two bid system.


35

TENDER ENQUIRY DOCUMENT

Tender document is Vital document, which contains ;Name of store to be procuredTender cost in rupees (non refundable) depending upon the value of procurement.

Tender cost is to be drawn in favor of Asst. Meteorologist(DDO), DGM’s Office, New Delhi in the form of DD only. Following are the rates at which tender cost is charged

Rs 100/- for procurement value up to Rs.10.00 LakhRs.200/- for procurement value >10.00 Lakh and up to Rs.20.00 LakhRs.500/- for procurement value >20.00 Lakh and up to Rs.1.0 croreRs.1,000/- for procurement value >1.0 crore Starting date of sale of tender document.Date, time and venue of pre bid conference if required.Last date and time of submission of tender.Date, time and venue of tender opening.Details of EMD which cab be submitted in the form of DD/FDR/Bank Guarantee in

favor of Asst. Meteorologist(DDO), DGM’s Office, New Delhi. EMD is charged at 2% of procurement value.

Normally four weeks time is kept between invitation and submission of tender where pre bid conference is not there and five to six weeks where pre bid conference is there in case of open tender.

Tender enquiry document with other commercial terms & conditions also containing specifications and allied Technical details , terms of reference and list of deliverables is sent to;

DGM (Telecom) for placing same on IMD website.Submitted to DAVP for publishing in at least one national daily in wide circulation.Submitted to Director General of commercial intelligence & Statics ,Kolkata for

publishing in Indian Trade Journal(ITJ).Copies to those foreign embassies in India and Indian embassies abroad from which

countries, bids are expected to be received.

Pre bid conference: Pre bid conference is a meeting between interested tenderers and a committee constituted by DGM comprising of officers of IMD or is some cases from outside IMD as well . The meeting is in connection with clarifications regarding technical as well as commercial aspects related to tenders. Efforts are made to clarify the issues in the conference itself. However minutes of meeting duly approved by DGM are to be placed on IMD website sufficient in advance from the date of submission of tenders.

It may pl. be noted that advertisement of NIT in national daily as well publication in ITJ is to be ensured before pre bid meeting. Date of pre bid is to be extended, in case of non publication of NIT by due date.

Two bid system is the system in which technical and financial bids are submitted simultaneously. Financial bids are sealed in separate cover with marking on the envelope. This is due to reason that financial bids of technically acceptable bidders shall only be opened.


36

Opening of tender : Tender is to be opened on schedule date and specified time as mentioned in tender enquiry document by a committee with officers of CPU and one outside CPU, duly constituted by DGM. All technical bids are to be numbered serially on the front page and signed by committee members. Tenderer himself or their authorized representative (one representative of one tenderer only) to be allowed to attend opening . List of bidders is to be filled and authority letters of all the authorized representatives must be enclosed with the list. Signature of bidders/authorized representatives must be put in the list. Entries must also be made in tender opening register with the details of tenders received till specified time as mentioned in tender enquiry document. Tenders received, if any after specified date &time must be marked as “ Late tenders” and not to be opened.

Tender opening committee shall ensure that tender has been signed, EMD for required amount and for specified period as mentioned in tender document favoring “Asst. Meteorologist(DDO)”, DGM’s office, Payable at New Delhi has been enclosed. All column of Check list have been filled and signed and tender form have been signed. Necessary stamp have also been affixed at required pages.

Tender Evaluation Committee : All responsive bids are to be submitted by CPU for tender evaluation to a committee duly constituted by DGM which shall evaluate the tender in the light of tender enquiry document and submit TEC report with a recommendation of technically acceptable bidders. Compliance statement and List of deliverables in r/o each bidder are to be enclosed with the report. All pages of the report are to be signed by all committee members.

TEC report shall be submitted to competent authority for kind consideration and approval accordingly by CPU.

Price bids of technically acceptable bidders shall only be opened by CPU after acceptance of TEC report only.

All technically acceptable bidders shall be informed regarding opening of their price bids well in advance. Date, time and venue of price bid opening shall also be included in the letters issued to bidders. Price bids shall be opened by a committee. Committee shall ensure that all pages of the bids are numbered, signed and stamped by the bidders. Tenderer himself or their authorized representative (one representative of one tenderer only) to be allowed to attend opening . List of bidders is to be filled and authority letters of all the authorized representatives must be enclosed with the list. Signature of bidders/authorized representatives must be put in the list. Entries must also be made in tender opening register with the details of price bids opened.

CST: All price bids opened shall be handed over to committee duly constituted by competent authority in this regard. Committee shall prepare cost comparison chart in the light of prices quoted by the bidders. Based on the total cost lowest (L1) , nexthigher(L2) ---- etc shall be marked by committee accordingly. Report shall submitted to CPU, who in turn shall submit same to FO for further evaluation after scrutinizing same at his end.

After approval of CST, a note shall be submitted to FO/IFD, MoES for accord of E/s in r/o lowest technically acceptable bidder, depending upon value of procurement. Supply order shall be placed duly vetted by FO after accord of E/s.


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DUTIES & RESPONSIBILITIES OF PROJECT DIRECTORS IN PROCUREMENT

Presentation by H. A. K. SINGH, DIRECTOR (C.P.U.)

The Project Director is responsible for planning and execution of the project. The Project Director and his team members are required to deliver their tasks according to the project schedule. The Project Director is responsible for communication, including status reporting, risk management, escalation of issues that cannot be resolved in the team, and, in general, making sure the project is delivered in budget, on schedule, and within scope. Thus the Project Directors have a key role in smooth completion of project assigned to them, resulting in getting Expenditure Sanction from competent authority smoothly. Detailed duties and responsibility of project Directors are highlighted as mentioned below:

Broad based specifications of stores to be procured which should not be vendor specific should be framed. All efforts should be made to procure system with latest technology available globally. For this propose Project Director may issue RFI (Request For Information) to know latest availability of product globally and thus resulting in receipt of sufficient bids and making rates more competitive.

The Project Director should ensure that the name of the item to be procured should be the same as mentioned in Administrative Approval, Budgetary Quote, RFP & Indent Form etc.

Qualification criterion should be such that it can be suitable to most of bidders. Schedule of Delivery, Installation and Commissioning should be realistic so that

project could be completed as per schedule without any extension of project. In number of cases it is seen that though delivery of equipment has been made by supplier but equipment is lying uninstalled due to reason that site is not ready. It is further to be mentioned that delay in completion of project results in imposition penalty clause (which resulted in many complications and representations).

Project Directors must ensure in the light of latest budgetary quotations that cost of store mentioned in the indent form is realistic and as per approved estimate of scheme. Total outlay of scheme must be ensured after adding duty, taxes, overhead charges, etc. which should not exceed by approve outlay of scheme.

In most of the cases project directors is nominated as member secretary of TEC/ CST or an officer of same division is nominated. Project Director must see that tender has been evaluated as per terms and conditions mentioned in the document and if specification provided by the bidder in the un priced bid is as per requirement of consignee.

After accord of expenditure sanction copy of supplier order is submitted by CPU to consignee to ensure that supply order is in order in all respect. Project Director shall read all clauses of supply order and intimate to CPU regarding discrepancy if any in this regard.

Project director shall ensure that all necessary clearance from department like WPC, AAI, State Govt. etc. have been obtained if necessary before delivery of store.


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Project Director must initiate a case to competent authority for constitution of SAT committee well in advance. Project Director shall interact with committee during SAT to ensure that system meets all the parameters as mentioned in the tender enquiry and there is no deviation in this regard.

Project Director must ensure that entry of item in stock register have been made and has a mention on the reverse of the invoice that store has been received in quality and quantity as per tender document in good condition same has been entered is stock registered at page number……… Authorized signatory shall put his signature and seal below the certificate.

In case of domestic supply, copy of delivery challan along with date of receipt shall also be enclosed.

Project Director immediately after successful commissioning of system shall issue a certificate to supplier in this regard. Certificate of successful training along with the details of officer’s undergone training signed by Head of division is also to be enclosed (if applicable). Based on certificate, CPU shall initiate case for release of balance payment as per terms & conditions of supply order.


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CCHHEECCKK LLIISSTT FFOORR SSUUBBMMIISSSSIIOONN OOFF PPRROOCCUURREEMMEENNTT BBIILLLLSS

PPrreesseennttaattiioonn bbyy SShh SS.. CC.. JJaaiinn,, DDiirreeccttoorr CCPPUU

Mode of Procurement in CPU

On Limited Tender basis (Value Up to 25 Lakhs On Open tender Basis (Value More than 25 Lakh) On PAC Basis On rate contract basis through DGS&D Mode of Payments in CPU Indigenous components Through DDO & PAO (Bills in Triplicate) Foreign components Through L/C ( Four set of Documents) Through PAO to PAO (DGS&D,DAVP) Letter of Credit : It is international practice followed for payment in foreign

currency When S.O. is placed to foreign firm . L/C is opened in Bank (SBI) of the value of

foreign components in favour of supplier for a specified period depending on delivery period and the payments are made as per terms and conditions mentioned in L/C. L/C should contain same payment terms as mentioned is S.O.

CHECK LIST

1. Do not accept bill/Invoice till all the items mentioned there in have documental proof. Person dealing with procurement/payments shall be able to explain each and every item with amount mentioned in the bill to their superiors. Thus get fully convinced before accepting the bill, otherwise return immediately for desired correction.

2. Ensure funds are available3. Invoice/Bill are submitted in Triplicate4. Items in the bill are as per Supply Order (S.O.)5. Ensure actual delivery date is as per S.O. or as per amendment (if any). If not impose penalty clause (L/D) and work out L/D amount to be imposed as per clause and enclose details of calculation.6. Ensure Unit price, Quantity, Total price and Taxes mentioned in bill are as per S. O.7. Ensure no variation in the Make & Model mentioned in S. O.8. Invoice should be in good agreement in payment terms as well as in lot of store and

its value mentioned in S. O.9. Ensure delivery challans enclosed should wear signature and stamp of officer of delivered station/ site10. Delivery challan enclosed are original. If not it should be verified by the officer designated by consignee.11. Bill is of relevant part of:


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Supply of Store Installation/commission/Site Acceptance FAT Training factory site (Source Code, Installation/Maintenance). Installation site.

12. Certificate on back side of invoice has been incorporated, signed & stamped by officer of consignee for relevant part of: Receipt of Store Installation/commission/site acceptance FAT Training factory site (Source Code, Installation/Maintenance) installation site

13. Also ensure documents enclosed for particular part of payment as per S. O. for Store, Installation/ commission/SAT, FAT, Training etc. for final payment.14. Check the validity of performance security. It should be Two (2) months more than the warranty period.15. Copies of relevant note potion of approval are enclosed. 16. Sanction letter of appropriate amount generated and enclosed. It should contain details of L/D deducted, earlier payments made, head of A/c, & F.O. Diary number.17. Verified, Signed& Stamped copy of S.O. and its amendments ( if any)are enclosed.

Certificates

For storeCertified that store mentioned in the bill are as per supply order, received in good condition on ________________(Actual date of receipt) and entered in non consumable stock register page number(s) _____________

For Installation/ commissionCertified that the store supplied has been installed , Erected, commissioned at site on ______(date ) as Per S. O. All systems are working properly and are Accepted. Payments________(payment part) may be Released.

Where no Installation/commissioning Certified that store mentioned in the bill are as per S. O. received in good condition on ________(actual date of receipt) ,entered in non consumable stock register page No.(s)________ .Store received has been tested and accepted on_________(date of acceptance). Payment may be released.


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Where 100% payment after test and acceptanceCertified that store mentioned in the bill are as per S. O. received in good condition on ________(actual date of receipt) ,entered in non consumable stock register page No.(s)________ . Store received has been installed erected tested commissioned and accepted on_________(date of acceptance). Payment may be released.

For Store (L/C payment)Certified that store mentioned in the bill/ Invoice are as per S. O. received in good condition on ________(actual date of receipt) ,entered in non consumable stock register page No.(s)______. Store received has been tested and accepted on_________(date of acceptance). Payment ________(payment part) may be released as per L/C condition.

For Installation/ CommissioningCertified that the store supplied has been installed, erected tested, commissioned and accepted on_______(date of acceptance). Payment______(Payment part) may be released as per L/C.

For Training (Factory/Site)Certified that system Training on operation & maintenance provided to_____ person(s) for a period from______ to _____ at factory/Installation site.

Bill for adjustment of Advance drawn

S. No. 1 to 10 same as above Check Vat/CST is claimed on Store and Service Tax on Services Check Taxes are inclusive in prices or extra and are as per S.O. Advances

drawn. Items should be as per S.O. or as per details of Advance drawn for. Claims for contingency charges or for R&D work are supported by relevant

document having detail of amount incurred on man power etc Training , if any should be supported by documental proof i.e. certificate of

training from the firm mentioned in the S.O. or in the list for which advance is drawn and proof of currency in which training is supposed to be paid as per S.O.

Check for VAT/CST for Store and Service Tax for Services are claimed with correct rates.

Relevant certificate on back side of invoice as prescribed is incorporated, signed & stamped by officer of consignee for

Receipt of Store Installation/commission/site acceptance FAT Training factory site (Source Code, Installation/Maintenance) installation site


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Check List for payment through L/C for Bank Release Order (BRO)

Prescribed Relevant bank document duly filled and signed Invoice should be as per S.O. and certified on back side for appropriate part as

per payment term. ( in case of final payment) Insurance certificate Bill of Lading Certificate of origin Certificate of Warranty/ Packing List Bank import advice for appropriate value as per L/C payment term Sanction Letter Verified copy of S.O. Check for validity of performance guaranty. Two months more than warranty

period. Copy enclosed Proof of currency conversion rate. Copy of relevant note portion Letters to PAO for authorization Letter to Bank Manager for payment Letter of under taking for insurance in case of FOB procurements. All the enclosed documents (Photo copies) are to be Certified, signed and stamped by an officer of A M level. Bank documents are to

be signed by officer authorized by competent authorized.

Suggestion for consideration Delivery schedule should be realistic and achievable on ground reality basis

especially in turnkey projects. All approvals from competent authority relating to FAT, Foreign Training for

installation/maintenance and Source code, SAT etc. should be available with indent.

Discrepancy, if any in S.O./LC should be communicated within a week Monitoring officers at HQ as well as at site station should be identified

immediately after placing of S.O. Schedule of implementation should be prepared as per delivery period and to be

followed. Progress should be monitored and report may be sent to DGM, Secretariat and

CPU on weekly/fortnightly basis. During framing of Technical specification Quantity of store to be procured should

be in good agreement with delivery schedule. Difficulty faced in AWS, ARG and DWR may be taken in to account.

Putting the responsibility on the firm in tender for obtaining entry permit and desired license do not work as the concern Govt. Authority do not recognize the firm. Hence active participation of consignee/station in charge of proposed site is urgently required for early settlement and to adhere to the schedule of implementation.


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CHAPTER 3FINANCE AND ACCOUNT MANAGEMENT

PROCESSING OF BILLS BY DDOPresentation by Sh. N.S. DALVI, A.O. (CASH)

GENERAL PRINCIPLES RELATING TO EXPENDITURE & PAYMENT

Every officer incurring or authorizing expenditure from public funds should be guided by high standards of financial propriety.

Standards of financial propriety Every officer is expected to exercise the same vigilance in respect of expenditure

incurred from public money as a person of ordinary prudence would exercise in respect of expenditure of his own money.

The expenditure should not be prima facie more than the occasion demands No authority should exercise its powers of sanctioning expenditure to pass an

order which will be directly or indirectly to its own advantage Expenditure from public money should not be incurred for the benefit of a

particular person or a section of the people The amount of allowances granted to meet expenditure of a particular type

should be so regulated that the allowances are not on the whole a source of profit to the recipients.

Responsibility of controlling officer in respect of budget allocation

To ensure :

That the expenditure does not exceed the budget allocation. That the expenditure is incurred for the purpose for which funds have been

provided. That the expenditure is incurred in public interest. That adequate control mechanism is functioning in his department for prevention,

detection of errors and irregularities in the financial proceedings of his subordinate offices and to guard against waste and loss of public money, and

That mechanism of checks contemplated at (iv) above are effectively applied.

Bill processing followed in I.M.D.

difference in non-cheque drawing & cheque drawing ddos different kinds of bills procedure followed for bills relating to purchase


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Payments

The departmental systems of payments are scattered at various places in the rules of GFRs, FRs, SRs, government account (receipts and payments) rules, civil accounts manual etc.

GFR 2005 rule 29 : all financial sanctions and orders issued by a competent authority shall be communicated to the pay and accounts officer of imd.

CHECKLIST ISSUED VIDE ORDER No.DGMS/AO/DFPR/2010-11 DATED 6TH JULY, 2010 (Checklist while submitting the Bills)

Sanctions ordered by a Head of Department may be communicated by an authorized Gazetted Officer of his office duly signed by him for the Head of Department or conveyed in the name of the Head of the Department.

Sanction Orders issued should be as per terms & conditions mentioned in the supply order/work order as the case may be.

Approval of the Competent Authority All orders conveying sanctions of expenditure should express the amount both in

words and figures Heads of Accounts – Major Heads, Sub-Heads, Plan-Non-Plan All orders conveying sanctions should contain a brief summary of the reasons for

the expenditure. Diary No. of F.O/IFD as the case may be, is to be mentioned in the sanction order. Certificate of Stock Entry has been made in the Register. Certificate of Receipt of material in quality and quantity as per supply order

indicating the dates of receipts. Invoices/Bills/Delivery Challans in original duly certified by the Consignees &

concerned officers For Late Delivery provision of LD Clause to be followed. Performance Guarantee to be obtained wherever applicable. Old Bills – no claim certificate. Work Completion Certificate with date Certificate stating that the case does not pertain to Single Tender/Order not with

OEM etc. as specified by PAO in their checklist. Taxes & TDS as per GOI Rules in force to be deducted wherever applicable.

ADVANCE PAYMENTS

Rule 159 of GFR 2005

Advance payments to the suppliers should be avoided and ordinarily the payments should be released only after the services have been rendered or supplies have been made by the party.


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In unavoidable circumstances, the advance of 30% of the contract value to the private firms and 40% of the contract value to the State or Central Government Agency can be released.

PART PAYMENTS

Depending upon the terms & conditions of the contract, the part payment can be released to the party, only after dispatch of the material from its premises.

REMITTANCES TO FOREIGN COMPANIES

As far as Bills processing regarding FOREIGN COMPANIES is concerned, the Ministry of Finance has issued Circular No. 04/2009 dated 29th June, 2009 how remittances to foreign companies are made under section 195 of the Income Tax Act

Section 195, as regards the payer of any sum chargeable to tax, applies to any person unlike certain other sections relating to TDS and covers

Individuals Hindu Undivided Families Firms and AOPs Non Residents Foreign Companies

Persons having exempt income in India e.g. trusts and Non profit Organizations claiming exemption under sections 10 and 11 of the Income Tax Act

Any other juristic person irrespective of whether such person has an income chargeable to tax in India or not

How the remittances are made to foreign companiesMostly all remittances to foreign companies are made through l/Cs. No remittances are TO BE made unless a no objection certificate is obtained from the income tax department.

OR OTHERWISE

Before making any such remittances the remitter has to give an undertaking under section 195 of income tax act 1961.


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FUNCTIONING OF CASH & A\C SECTION IN IMD

Presentation by Asha Ram Sharma, AM-II (Budget)

The detailed instructions to be followed by DDOs including the DDOs permitted to draw funds directly from the local branches of the Bank by means of cheque under the departmentalised system of payment are scattered at various places in the Rules of GFRs, FRs, SRs, Government Account {Receipts and Payments} Rules, 1983, Civil Accounts Manual, etc., etc. Thus a manual with the title ‘Manual for Drawing and Disbursing Officers’ containing the essential and important instructions with suitable references to the relevant provisions of the above publications was initially brought out in the year 1981 which was subsequently revised in the year 1988.

The instructions detailed in Drawing and Disbursing Officers Manual describe the procedure to be followed in regard to the receipt, custody,and disbursement of money in Government Offices and maintenance of accounts connected therewith.These instructions are based on the Central Government Account (Receipts and Payments) Rules ,1983,and General Financial Rules and other relevant orders on the subject. In a nutshell this manual has been brought out with the objective of providing easy to understand guidance to the DDOs. This manual is a guide book for internal use only. Its contents do not supplement, replace or modify any codal provision.

Functions & Resposibilties of DDO

The Departments of the Central Government, Heads of Departmentsand Administrators have powers (vide Rule 114 of Delegation of Financial Powers Rules,1978) to declare as the Head of Office any Gazetted Officer subordinate to them. The Head of Office or any other Gazetted Officer designated as Disbursing Officer by a Department of the Central Government, a Head of Department or an Administrator [vide Rule 2 (xii) of GFRs] functions as the Drawing & Disbursing Officer for drawing bills and making payments on behalf of the Central Government and is responsible for all moneys received or disbursed in his office and the maintenance of accounts thereof. In accordance with Rule 35(2) of Central Government Account (Receipts and Payments) Rules the Head of Office may, however, authorise any Gazetted Officer serving under him to sign a bill or order for him, communicating the name and specimen signature of the officer to the PAO or cheque drawing DDO/Treasury Officer with whom he is in account. This does not however, confer on the Gazetted Officer so authorised any powers of the Head of Office nor does it relieve the Head of Office in any way of his responsibility for the accuracy of the bill or for the disposal of the money received in payment.

The Drawing & Disbursing Officer is personally responsible for the correct maintenance and timely rendition of accounts or returns in respect of public funds or stores handled in his office. [Rule 8 of GFRs]


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Specimen signatures of DDO signing cheques etc

Every Government Officer who is authorised to (i) sign or countersign bills (ii) draw cheques shall send specimen of his signatures to his Accounts Officer/branch bank concerned duly attested by the relieving officer or through some superior officer whose specimen signature is already available with the Accounts Officer/ Bank concerned.

Security Deposits by govt. servants handling cash/stores

The Drawing & Disbursing Officer shall see that, subject to the provision of Rule 271 and 272 of GFRs, every Government servant, whether gazzetted or non-gazzetted, who is entrusted with the custody of cash or stores, is required to furnish security, for such amount as may be prescribed and to execute a security bond setting forth the conditions under which Government will hold the security and may ultimately refund or appropriate it. [GFR270]

Instruction for handling cash by DDO

The Drawing & Disbursing Officer shall ensure that, except where otherwise specifically authorised, Government money is kept in strong treasure chests secured by two locks of different patterns, and the keys of one lock shall be kept apart from the keys of the other and in the custody of a different person wherever practicable. The chest shall not be opened unless both the custodians of the keys of the two locks are present. (It would, however be proper that the cash chests are embedded in an inner wall of the room occupied by the DDO or by the Cashier).

Specimen signatures of DDO signing cheques etc.

Every Government Officer who is authorized to (i) sign or countersign bills (ii) draw cheques shall send specimen of his signatures to his Accounts Officer/branch bank concerned duly attested by the relieving officer or through some superior officer whose specimen signature is already available with the Accounts Officer/ Bank concerned.

Security Deposits by govt. servants handling cash/stores

The Drawing & Disbursing Officer shall see that, subject to the provision of Rule 271 and 272 of GFRs, every Government servant, whether gazzetted or non-gazzetted, who is entrusted with the custody of cash or stores, is required to furnish security, for such amount as may be prescribed and to execute a security bond setting forth the conditions under which Government will hold the security and may ultimately refund or appropriate it. [GFR270]


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Maintenance Cash Book

The DDO will ensure that all monetary transactions in his office are entered in a cash book in the prescribed form. The other important instructions mentioned in the ensuing paragraphs should be observed in this regard. The cash book should be maintained in form GAR 3/TR 4. It should be bound and its pages machine-numbered. Before bringing a cash book into use, the DDO should count the number of pages and record a certificate of count on the first page of the cash book.

All monetary transactions should be entered in the cash book as soon as they occur and be attested by the DDO in token of such check.

The cash book should be closed regularly and completely checked. The DDO should verify the totaling of the cash book or have this done by some responsible subordinate other than the writer of the cash book and initial it as correct.

At the end of each month, the DDO should verify the cash balance in the cash book and record a signed and dated certificate to that effect. In case, such verification of the balance is not possible on the last working day due to disbursement of salary, the cash verification may be done on the first working day of the next month before any transaction arises on that day.

When Government moneys in the custody of a Government Officer are paid into Government account in the accredited bank, the DDO making such payments should compare the Bank's receipt on the paying in- slip/ challan with the entry in the Cash Book before attesting it, and satisfy himself that the amount has been actually credited into the bank.

An erasure or overwriting of an entry once made in the Cash Book is strictly prohibited. If a mistake is discovered , it should be corrected by drawing the pen through the incorrect entry and inserting the correct one in red ink between the lines.

The DDO should initial every such correction and date his initials invariably.

A Government Officer who handles Government money should not, except with the special sanction of the Head of the office, be allowed to handle also in his official capacity, money which does not belong to the Government. Where under any special sanction, a Government Officer deals with both Government and non-Government money in his official capacity, the Government money should be kept in a cash box separate from the non-Government money and the transactions relating to the latter should be accounted for in a separate set of books and be kept entirely out of the Government account.


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The employment of peons to fetch or carry cash should be discouraged. Where it is absolutely necessary to employ one for this purpose, a person of some length of service and proved trustworthiness

Drawal and Disbursement of Pay & Allowances

The Head of Office is personally responsible for the amount drawn on a bill, signed by him or on his behalf until he has paid it to the person(s) entitled to receive it and has obtained a legally valid acquittance.

In a case where a Government servant is physically unable to sign the acquittance,the payment should be made to the person who has been nominated by the Government servant to receive his Provident Fund dues.

If for any reason, payment cannot be made within the course of the month, the amount drawn should be refunded by short drawal in the next bill and when the occasion for making the payment arises, the amount may be drawn afresh under Rule 89 of CGA (R&P) Rules.

Pay and allowances can be drawn for the day of the Government Servant's death irrespective of time of death. `Day', for this purpose means the calendar day beginning and ending at midnight.

Dues in respect of pay and allowances of all kinds claimed on behalf of a deceased Government servant upto and including the day of death may be paid without the production of usual legal authority, if the Head of Office is satisfied about the right of claimant. If the gross amount of the claim exceeds Rs.10,000/-payment may be made by Head of Office only on the execution of an indemnity bond in form GAR 26 duly stamped for the gross amount due for payment and after obtaining.

Accounts of the undisbursed amounts

An account of undisbursed pay and allowances should be kept in a Register in Form GAR 25/TR 71. Entries of the total and particular amount of undisbursed pay and allowances may be made against each bill serially and subsequent payments thereof entered in the appropriate columns of the Register and the Cash book, each such entry being attested by a Gazetted Officer. From this Register, an abstract of amounts remaining undisbursed for three months should be prepared in order to ensure their refund either in cash or by short drawal from the next bill.

Maintenance of Bill Register

A bill register in Form GAR 9/TR 28-A should be maintained by DDOs. The register should be reviewed monthly and the result of the review recorded thereon.


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Procedure for Receipts against the amounts received & rendition of accounts

The Head of Office receiving moneys on behalf of the Government must give the payer a receipt (GAR 6/TR 5) duly signed by him or by any subordinate officer authorisied by him after satisfying himself that the amount has been properly entered in the cash book.

All moneys received by or on behalf of Government either as dues of Government or for deposit, remittance or otherwise should be immediately brought to account by the DDO in the cash book and remitted into the Bank.

Forms used for prepration of Bills

Bills should be prepared in the prescribed forms e.g.

Pay Bill GAR 13,13 A & 15 (TR 33) TA Bill GAR 14,14A,14B,14C and 16(TR 25) MEDICAL BILL GAR 23 Contingent Bills GAR 29,30,31,32(TR 30,31,32,33) Sub-Vouchers for petty contingent expenditure GAR 29,30,31,32(TR

30,31,32,33) ,GAR 28(TR 30 A)

Accounts classification on bills

Charges relating to two or more major heads should not be included in one bill. The full accounts classification must be recorded on each bill by the drawing officer. The classification should also show whether the expenditure is voted or charged and Plan or Non- plan. Its allocation between departments or between Central Government and State Governments wherever necessary should also be indicated on the bill.

Instruction’s for Preparation of bills

Corrections and alterations in the money columns and the total of a bill whether made in words or figures should be neatly made by scoring out the incorrect entry and making a fresh one. These corrections should be attested by the dated signatures of the drawing officer as many times as such corrections and alterations occur. Erasures and over-writing are prohibited.

All bills must be filled in and signed in ink, entries and signature with ball point pens are also permissible provided they are clear and legible.

The total amount of each bill should, as far as whole rupees are concerned, be written in words as well as in figures, care being taken to leave no space for


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interpolation. The total should also be expressed in red ink as being below a specified amount in whole rupees.

Procedure for Budgetary control by DDO’s

The drawing officer should ensure that no amount is drawn in excess of the budget allotment. In order to exercise an effective check in this regard, an Expenditure Control Register in Form GFR 9 should be maintained showing the appropriation by sub-heads and units of appropriation. At the time of signing each bill, it should be ensured that the amount of the bill under signature is covered by the budget allotment. A Liability Register (Form GFR 6) should also be maintained.

Bills for Contingent Charges

Where it is necessary to draw money for contingent expenses, or in any case at the end of each month, a red ink line should be drawn across the page of the register(s), the several columns added up and several totals posted in separate bills for each class of contingent expenditure . The head of the office or the officer to whom this duty has been delegated should carefully scrutinize entries in the register(s) with the sub-vouchers, initial them and sign the bill which will then be dated and numbered and presented for payment to the Pay & Account Office/Cheque Drawing DDO.

The DDOs are advised to bear in mind the following essential checks

Cash & Accounts

All monetary transactions should be entered in the cash book in the prescribed form as soon as they occur and duly attested.

The cash book should be closed regularly and completely checked, and at the end of each month the cash balance verified physically.

In respect of Government moneys paid into the bank, the relevant entry in the cash book should not be attested unless the bank's receipt on the challans is verified.

No money should be disbursed unless a legal aquittance from the person(s) entitled to receive the amount drawn on a bill is obtained.

An account of undisbursed Pay & Allowances should be kept in a register in form GAR 25 and the amounts remaining undisbursed for 3 months should be refunded.

For all moneys received, receipts in the prescribed form GAR 6 should be issued and it should be ensured that such receipts have duly been entered in the cash book.

All moneys received in cash or by cheques/Demand Drafts should be promptly paid into the bank/sent to the PAO, as the case may be.


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A proper account of expenditure and revenue receipts should be rendered to the PAO by the prescribed dates and in the prescribed forms.

Except where otherwise specifically povided, any loss or shortage of public money, stamps, stores or other properties caused by defalcation or otherwise should be immediately reported to the next higher authority as well as to thePrincipal Accounts Officer and the concerned Audit Officer.

Receipt & Payments Rules Preparation of bills

The following instructions with regard to preparation of bills shall be observed. Printed forms of bills as prescribed under these rules or other departmental

regulations should, as far as possible, be used. Bill for all debt-head items should be drawn in separate forms printed in red ink on white paper.

If, in any case, the use of a bill purely in any regional language becomes unavoidable, a brief abstract should be endorsed in English under the signature of the preferring officer stating the amount, the name of payee and the nature of the payment. .

All bills must be filled in and signed in ink; entries and signature with ball point pens are also permissible provided the same are clear and legible. The amount of each bill should, as far as whole rupees are concerned be written in words as well as in figures. The fraction of a rupee may, however, be written in figures after the words stating the number of rupees, but in the event of there being no fraction of a rupee, the word 'only' must be inserted after the number of whole rupees and care should be taken to leave no space for interpolation as in the following examples 'Rupees twenty-six only' 'Rupees twenty-five and 25 paise'.

All corrections and alterations in the total of a bill whether made in words or figures should beattested by the full signature, with date, of the person signing the receipt as many times as such corrections and alterations are made.

The full accounts classification must be recorded on each bill by the drawing officer, the classification in the Budget being taken as a guide. The classification should also show whether the expenditure is voted or charged; and as far as practicable, its allocation between departments or between Central Government and State Governments where necessary.

Charges against two or more major heads should not be included in one bill. When bills are presented on account of charges incurred under any special

orders, the order sanctioning the charge should be quoted and the sanction attached to the bill.

Dates of payment should, when possible, be noted by the payees in their acknowledgements in sub-vouchers and acquittance rolls. If, for any reason (such as illiteracy or the presentation of receipts in anticipation of payment), it is not possible for the dates of payment to be noted by the payees, the dates of actual payment should be noted by disbursing officers on the documents under their initials either separately for each payment or by groups as may be found convenient.


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When payment is desired wholly or partly by a bank draft (wherever payment by bank draft is permissible) or by cheques in favour of another payee, formal application for the draft or cheque should accompany the bill and the manner in which the payment is desired should also be indicated in the drawer's receipt on the bill.

the spaces left blank either in the money column or in the columns for particulars of the bill should invariably be covered by oblique lines.

A note to the effect that the amount of the bill is below a specified amount expressed in whole rupees, which is slightly in excess of the total amount of the bill,

Payment of contingent expenditure out of permanent advances, etc

Government officers who have to make payments for contingent expenditure before they can place themselves in funds by drawing contingent bills, may make such payments out of permanent advances or imprests which they may be permitted to hold under the orders of competent authority (issued in accordance with the provisions of rule 90 of the General Financial Rules, 1963), subject to recoupment on presentation of contingent bill. All such claims upto Rs.2,000 may be disbursed out of permanent advance or imprest.

General Limitations

All charges actually incurred must be paid and drawn at once, and under no circumstances they may be allowed to stand over to be paid from the grant of another year. The charges relating to two or more major heads may not be included in one bill.

No money shall be drawn from Government Account unless it is required for immediate disbursement. It is not permissible to draw money from Government Account in anticipation of demands or to prevent the lapse of budget grants.

Save as hereinafter provided in sub-rule (4), no pay of any kind and no additions to pay may be drawn on bills for contingent expenditure.

Contingent register

A register of contingent expenditure shall be kept in each office and the initials of the Head of the Office, or of a gazetted officer to whom this duty has been delegated by the Head of the Office, shall be entered against the date of payment of each item.

The standard form of the contingent register will be as in Form G.A.R. 27. The actual details such as the number of columns to be opened, the subheads and detailed heads and such further detailed classification as may be required for the purpose of control, may be settled by the Accounts Officer and the controlling authority to suit the conditions of each department or office.


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As a general rule, the most common sub-heads and detailed heads may have separate columns with appropriations noted at the top. The less important and trival items may be lumped together in one column when each of the separate items need not be accounted for or watched separately. Any charge falling under any of the separate columns but requiring explanation may be described in the column "Description" though the amount of it is entered only in its special column; the same "Description" column will serve also for note of the month or period to which any recurring charges entered in the other columns belong.

As each payment is made, entries must be made in the contingent register, of the date of payment, the name of payee and the number of sub-voucher in the three columns to the left, and the amount in the proper column, and in the case of any charge requiring explanation, the initials of the officer incurring it shall be taken against the description.

To enable the disbursing officer to watch the progress of the expenditure under each detailed head as compared with the appropriation for it, a progressive total of all the columns must be made monthly immediately after the monthly total so as to include all payments under each head, as also charges intimated by Account Office as adjusted on account of debit received from the commencement of the year upto the end of the last expired month.

Various types of Forms used for preparation of Bills

G.A.R.3CASH BOOKOffice of________________________ Month of __________________________RECEIPTS

Various types of Forms used for preparation of Bills

G.A.R.3CASH BOOKOffice of________________________ Month of __________________________PAYMENTS

Register of cheques issued

G.A.R.4REGISTER OF CHEQUES ISSUEDOffice of________________________ Month of __________________________


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CHAPTER 4PROJECT MANAGEMENT

During the Orientation programme for Project Directors in Administration, Finance & Procurement conducted at DGM office New Delhi from 2nd to 4th May, 2011, as a part of programme a special lecture was organized on 3rd May 2011 during pre-lunch session on the Topic: “Role of Project Director, Leadership and Motivation in Project Management” by Sh. Kamlesh Vyas, a Corporate Trainer in the area of Leader Skills, Communication Skills, Professional effectiveness, Decision Making etc. He was assisted during the lecture by Sh. R. K. Mandan, Director, Super quality services. Sh. Kamlesh Vyas mostly concentrated his lecture on latest trend in project management and gave an over view of changed management concepts. Sh. Mandan covered the Role and qualities of Project Managers along with basic features of project management. Both the speakers did not provided soft copy of their presentation. However based on notes taken during the lecture and literature available on the subject present material has been prepared for the benefit of Project mangers/ project leaders of IMD.

ROLE OF PROJECT DIRECTOR, LEADERSHIP AND MOTIVATION IN PROJECT MANAGEMENT

Compilation: Sh. R. P. LAL Dir (B &P)

Project management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations), which are repetitive permanent, or semi-permanent functional activities to produce products or services. In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies.

The primary challenge of project management is to achieve all of the project goals and objectives while honoring the preconceived constraints. Typical constraints are scope, time, and budget. The secondary—and more ambitious—challenge is to optimize the allocation and integrate the inputs necessary to meet pre-defined objectives.

The Role and Responsibilities of the Project Manager

A project manager is usually responsible for the success or the failure of the project. A project manager is the person who has the overall responsibility for the successful initiation, planning, design, execution, monitoring, controlling and closure of a project. They first need to define the project and then build its work plan. If the scope


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of the project is not very clear, or the project is executing poorly, the manager is held accountable. However, this does not mean that the manager does all the work by himself (which is practically impossible). There is an entire team under the project manager, which helps to achieve all the objectives of the project. However, if something goes wrong, the project manager is ultimately accountable.

Apart from this, depending on the size and the complexity of the project, they may need to take on multiple roles. The project manager may need to assist with gathering business requirements, help to design a database management system or may prepare project documentation. They may work full time on a large project, or may work part-time on various projects of a smaller nature; or may alternatively handle various projects as well as handle other responsibilities like business analysis and business development.

At times, they may have accountability but not authority. For example, he or she may be using certain resources but might not have direct control over those resources. At such times, the manager might find certain limitations over task execution, which might not take place as they might have liked. Not having direct control over the state of finances and finance allocation might cause ambiguity.

Project managers use project management software, such as Microsoft Project, to organise their tasks and workforce. These software packages allow project managers to produce reports and charts in a few minutes, compared with the several hours it can take if they do it by hand.

Qualities of a Project Manager

1. Inspires a Shared Vision

An effective project leader is often described as having a vision of where to go and the ability to articulate it. Visionaries thrive on change and being able to draw new boundaries. Visionary leaders enable people to feel they have a real stake in the project. They empower people to experience the vision on their own.

2. Good Communicator

The ability to communicate with people at all levels is almost always named as the second most important skill by project managers and team members. Project leadership calls for clear communication about goals, responsibility, performance, expectations and feedback.There is a great deal of value placed on openness and directness. The project leader is also the team's link to the larger organisation. The leader must have the ability to effectively negotiate and use persuasion when necessary to ensure the success of the team and project. Through effective communication, project leaders support individual and team achievements by creating explicit guidelines for accomplishing results and for the career advancement of team members.


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3. Integrity

One of the most important things a project leader must remember is that his or her actions, and not words, set the modus operandi for the team. Good leadership demands commitment to, and demonstration of, ethical practices. Creating standards for ethical behaviour for oneself and living by these standards, as well as rewarding those who exemplify these practices, are responsibilities of project leaders. Leadership motivated by self-interest does not serve the well being of the team. Leadership based on integrity represents nothing less than a set of values others share, behaviour consistent with values and dedication to honesty with self and team members. In other words the leader "walks the talk" and in the process earns trust.

4. Enthusiasm

Plain and simple, we don't like leaders who are negative - they bring us down. We want leaders with enthusiasm, with a bounce in their step, with a can-do attitude. Enthusiastic leaders are committed to their goals and express this commitment through optimism. Leadership emerges as someone expresses such confident commitment to a project that others want to share his or her optimistic expectations. Enthusiasm is contagious and effective leaders know it.

5. Empathy

What is the difference between empathy and sympathy? Although the words are similar, they are, in fact, mutually exclusive. In sympathy the subject is principally absorbed in his or her own feelings as they are projected into the object and has little concern for the reality and validity of the object's special experience. Empathy, on the other hand, presupposes the existence of the object as a separate individual, entitled to his or her own feelings, ideas and emotional history .

6. Competence

Simply put, to enlist in another's cause, we must believe that that person knows what he or she is doing. Leadership competence does not however necessarily refer to the project leader's technical abilities in the core technology of the business. As project management continues to be recognised as a field in and of itself, project leaders will be chosen based on their ability to successfully lead others rather than on technical expertise, as in the past. Having a winning track record is the surest way to be considered competent. Expertise in leadership skills is another dimension in competence. The ability to challenge, inspire, enable, model and encourage must be demonstrated if leaders are to be seen as capable and competent.

7. Ability to Delegate Tasks

Trust is an essential element in the relationship of a project leader and his or her team. You demonstrate your trust in others through your actions - how much you check


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and control their work, how much you delegate and how much you allow people to participate. Individuals who are unable to trust other people often fail as leaders and forever remain little more that micro-managers, or end up doing all of the work themselves.

8. Cool Under Pressure

In a perfect world, projects would be delivered on time, under budget and with no major problems or obstacles to overcome. But we don't live in a perfect world - projects have problems. A leader with a hardy attitude will take these problems in stride. When leaders encounter a stressful event, they consider it interesting, they feel they can influence the outcome and they see it as an opportunity.

9. Team-Building Skills

A team builder can best be defined as a strong person who provides the substance that holds the team together in common purpose toward the right objective. In order for a team to progress from a group of strangers to a single cohesive unit, the leader must understand the process and dynamics required for this transformation. He or she must also know the appropriate leadership style to use during each stage of team development. The leader must also have an understanding of the different team players styles and how to capitalise on each at the proper time, for the problem at hand.

10.Problem Solving Skills

Although an effective leader is said to share problem-solving responsibilities with the team, we expect our project leaders to have excellent problem-solving skills themselves.

PROJECT-LEADERSHIP-VS-PROJECT-MANAGEMENT

Project managers (PM) are naturally considered leaders since they claim near total responsibility for their projects. Though they do not manage the resources in some occasions, still they are project leaders. One cannot take both management and leadership as the same thing. Leadership and management are not the same. An efficient leader always encourages and stimulates his team, to make the members to be more successful contributors, to visualize their unique ideas and finally to act on the call of urgency.

Managers execute the tasks with defined methods while leaders themselves work with people. Similarly, the key elements like planning, staffing, organizing, problem solving, controlling and budgeting are involved in managing. However, the essential requirements like setting direction, inspiring, motivating and aligning people are involved in leadership. Leadership and management are completely different approaches of action. Each of them represents their individual characteristics and tasks. However, to


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run projects in today’s changing and complex business environment, both management and leadership skills are important.

Leadership is necessary for a number of reasons. For example, to make change in routine business environment, to run set systems and services properly, innovate and create new products. Above all, leadership encourages others to think differently, take risks, and innovate unique things. Well, management makes sure that the methods work successfully.

Remember that to be a good project manager, one must be a good leader also. The ability to encourage others in order to make them to reach their maximum potential is very important.

Despite the project manager dedicating to the most expensive and efficient project management tool set to deliver the project timelines, budget, and objectives, great leadership skills are required to make sure that the process goes according plan.

1. How to Encourage and Inspire Team Members

A project manager often faces ups and downs during his work. Emotionally, a Project Manager is required to handle people’s emotions, to motivate people when they get disappointed, to take the teams together during the difficult times, and finally to make sure that they have concentrated on the goals of the project.

A PM has to realize key aspects about the individuals who are the members of the team like their personalities, what gets them energized, and how to encouragethem, effectively. The main strategy here is to understand the members and show the true leadership which means being dependable and motivating.

A project leader must establish an emotional connection with each member of the team personally. This causes each team member to think about the project more emotionally rather than simply as a source of paycheck. Usually, the words "Thank you", literally, will do the trick.

2. Knowing the Limits

The toughest job for a Project Manager is to say "no" to the members of the team. Some projects cannot be completed on time, or may have to slip their budget or scope. Sometimes, the PM will have no choice except to not push the team members in order to complete the project on time. No amount of pushing can save a project, sometimes.

The main problem for a Project Manager is to recognize the right time to say “enough” and no project management training can prepare you for these moments. Sometimes, treating the team members badly only for the sake of accomplishing a project will result in a disaster, and it’s hard to know when.


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3. How to Improve Team Members

A Project Manager can further display leadership skills by improving members of the project team. This will result in making the project team even more capable as a result of the project work, yielding profitable results on projects to come.

The organizations usually fail to recognize the chance to improve new skills and build skills into workers during the project. Organizations seem to always focus on completing the projects in the shortest possible timeline, thus missing out the huge opportunity of possible future benefit.

Conclusion

Since projects are also businesses, but on a smaller scale, every role necessary for a business should work properly in order to successfully complete the project. Great leadership is very essential as well as a good management for an organization. Therefore, a PM is compelled to be leader as well as a manager for the sake of their project’s well-being.


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CHAPTER 5WORKS

SUBMISSION OF WORKS RELATED PROPOSALS

PRESENTATION BY Sh L. A. SIDDIQUE Director (Works)

Guidelines for submission of works proposals

1. Justification of the proposal with its purpose and time frame requirement.2. Approval in-principle must be obtained.3. Thereafter request for budget allocation should be sent to Budget/Planning

section under intimation to works section.4. Meeting with CPWD so that the works and its site can be examined and

evaluated so that estimate can be prepared accordingly.5. Guidelines for submission of works proposals6. Vetting of estimate – A proper certificate of vetting must be endorsed on the body

of the estimate before submitting to HQ.7. All vetted estimate and priority of works of the whole region must be sent in the

beginning of the financial year i.e. April every year along with the amount expected to be utilized during the financial year. Reminder from H.Q. should not be expected of in this regard.

8. Guidelines for submission of works proposals9. No proposal / estimates except of very urgent should be submitted in between

after finalizing the whole priority list.10.All fields offices and CPWD should be instructed not to make direct

correspondences with H.Q. 11.A monthly physical and financial progress report of each work must be obtained

from the concerned Executive Engineer and regularly forwarded to H.Q. office so as to reach the same by the 1st week of the succeeding month.

Guidelines for submission of works proposals

1. All efforts should be made to utilize the released funds within the financial year. However if there is any possibility of not utilizing the complete funds, then an assessment may be made by contacting the concerned Executive Engineer and proposal of withdrawal of funds must reach H.Q. office latest by 15th Feb. every year. No proposal of withdrawal should be sent after that to avoid unnecessary inconvenience to PAO office.

2. Processing of estimate3. For each works a separate A/A and E/S is obtained and necessary fund which is

expected to be utilized during the financial year has been authorized.

Expectation of HQ

It is the responsibility of the concerned/ user office that work should be completed successfully well in time for which proper monitoring is required viz. (i)


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whether the tender has been issued (ii) whether contractor has been appointed at what time work will start and what must be the speed so that work could be completed well in time.

To achieve this result concerned office are suppose to make cordial relation with CPWD authorities on organizing frequent meeting to know the progress report and discussing any sort of problem. Visiting of the project site and appraisal of progress also add to the successful completion of the project.

If there is a shortfall of the fund then H.Q. must be informed immediately

In case of project getting delayed or not started and there by likelihood of lapse of funds, then H.Q. must be informed immediately and fund may be surrendered.


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CHAPTER 6STORE MANAGEMENT AND DISPOSAL

PPrreesseennttaattiioonn bbyy BB..MM..SS..NNAAYYAALL,, DDiirreeccttoorr ((CCPPUU))

Inventory Management

This chapter contains the basic rules applicable to all Ministries or Departments regarding inventory management. Detailed instructions and procedures relating to inventory management may be prescribed by various Ministries or Departments broadly in conformity with the basic rules contained in this chapter. Inventory management id described in General Financial Rule 2005 from Rule -186 to Rule-202.

Store management Contain basic rule applicable to all ministries and departments rule 187(1) Receipt of goods and materials

Officer-in-charge of stores should refer to the contract terms of S.O. and follow prescribed procedure for receiving the materials.

RULE 187(2)All materials shall be counted , measured or weighed and subject to visual

inspection at the time of receipt to ensure that the quantities are correct, the quality is according to required specifications and there is no damage or deficiency in the materials. Technical inspection wherever required should be carried out by the agency approved for the purpose.

RULE 187(3)Details of the materials so received should thereafter be entered in the

appropriate stock register. Officer-in-chare of stores should certify that the he has received the material and recorded it in the appropriate stock register.

RULE 188(1)

Receipt/Issue of goods and materials from internal divisions of the Department. The indenting officer requiring goods and materials from internal divisions of the same organization should project an indent in the prescribed form for the purpose. While receiving the supply the indenting officer shall examine, count, measure or weigh the materials as the case may be, to ensure that the quantities are correct, the quality is in line with the required specifications and there is no damage or deficiency in the materials. An appropriate receipt is to be given by the indenting officer to the division sending the materials.


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RULE 188(2)In case of issue of materials from the stock for departmental use officer-of-charge

of the stores shall see that an appropriate indent in the prescribed format has been projected by the indenting officer. An written acknowledgement of receipt of the material issued shall be obtained from the indenting officer or his authorized representative.

RULE 187(3)In case material issued to the contractor, the cost of which is recoverable from

the contractor, all relevant particulars, including the recovery rate and total value chargeable to the contractor should be got acknowledged from the contractor duly signed and dated.

RULE 188(4)If the officer-in-charge of the store is unable to comply with the indent in full, he

should make supply to the available and make suitable entry to this effect in the indentor’s copy of the indent. In case alternative materials are available in lieu of indented materials, a suitable note to this effect may be made in the document.

RULE 189 Custody of goods and materials. The officer-in-charge of the store having custody of the goods and materials, especially valuable or combustible articles, shall take appropriate steps for arranging their safe custody, proper storage accommodation, including arrangements for maintaining required temperature, dust free environment etc.

Rule 190 (1) Lists and Accounts :The Officer-in-charge of stores shall maintain suitable item-wise lists and

accounts and prepare accurate returns in respect of the goods and materials in his charge making it possible at any point of time to check the actual balances with the book balances.The form of the stock accounts mentioned above shall be determined with reference to the nature of the goods and materials, the frequency of the transactions and the special requirements of the concerned Ministries /Departments.

Rule 190 (2)

Separate accounts shall be kept for(i) Fixed Assets such as plant, machinery, equipment, furniture, fixtures etc. in the Form GFR - 40.(ii) Consumables such as office stationery, chemicals, maintenance spare parts etc. in the Form GFR - 41.(iii) Library books in the Form GFR 35(iv) Assets of historical / artistic value held by museum /government departments in the Form GFR - 42.Note : These forms can be supplemented with additional details by Ministries / Departments as required.


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Rule 191 Hiring out of Fixed AssetsWhen a fixed asset is hired to local bodies, contractors or others, proper record

should be kept of the assets and the hire and other charges as determined under rules prescribed by the competent authority, should be recovered regularly. Calculation of the charges to be recovered from the local bodies, contractors and others as above should be based on the historical cost.

Rule 192 Physical verification of Fixed AssetsThe inventory for fixed assets shall ordinarily be maintained at site. Fixed assets

should be verified at least once in a year and the outcome of the verification recorded in the corresponding register. Discrepancies, if any, shall be promptly investigated and brought to account.

Verification of Consumables

1. A physical verification of all the consumable goods and materials should be undertaken at least once in a year and discrepancies, if any, should be recorded in the stock register for appropriate action by the competent authority.

Procedure for verification

2. Verification shall always be made in the presence of the officer, responsible for the custody of the inventory being verified.

3. A certificate of verification alongwith the findings shall be recorded in the stock register.

Discrepancies, including shortages, damages and unserviceable goods, if any, identified during verification, shall immediately be brought to the notice of the competent authority for taking appropriate action in accordance with provision given in Rule 33 to 38.

Rule 193 Rule 193

Buffer Stock : Depending on the frequency of requirement and quantity thereof as well as the pattern of supply of a consumable material, optimum buffer stock should be determined by the competent authority.Note : As the inventory carrying cost is an expenditure that does not add value to the material being stocked, a material remaining in stock for over a year shall generally be considered surplus, unless adequate reasons to treat it otherwise exist.

Rule 194 Physical verification of Library books :Complete physical verification of books should be done every year in case of libraries having not more than twenty thousand volumes.


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For libraries having more than twenty thousand volumes and upto fifty thousand volumes, such verification should be done at least once in three years. Sample physical verification at intervals of not more than three years should be done in case of libraries having more than fifty thousand volumes. In case such a verification reveals unusual or unreasonable shortages, complete verification shall be done.

Loss of five volumes per one thousand volumes of books issued /consulted in a year may be taken as reasonable provided such losses are not attributable to dishonesty or negligence. However, loss of a book of a value exceeding Rs. 1,000/- (Rupees One thousand only) and rare books irrespective of value shall invariably be investigated and appropriate action taken.

Rule 196

Disposal of Goods.

An item may be declared surplus or obsolete or unserviceable if the same is of no use to the Ministry or Department. The reasons for declaring the item surplus or obsolete or unserviceable should be recorded by the authority competent to purchase the item.

The competent authority may, at his discretion, constitute a committee at appropriate level to declare item(s) as surplus or obsolete or unserviceable.The book value, guiding price and reserved price, which will be required while disposing of the surplus goods, should also be worked out. In case where it is not possible to work out the book value, the original purchase price of the goods in question may be utilised. A report of stores for disposal shall be prepared in Form GFR - 17.In case an item becomes unserviceable due to negligence, fraud or mischief on the part of a Government servant, responsibility for the same should be fixed.

Rule 197. Modes of Disposal :

Surplus or obsolete or unserviceable goods of assessed residual value above Rupees Two Lakh should be disposed of by : obtaining bids through advertised tender or public auction.For surplus or obsolete or unserviceable goods with residual value less than Rupees Two Lakh, the mode of disposal will be determined by the competent authority, keeping in view the necessity to avoid accumulation of such goods and consequential blockage of space and, also, deterioration in value of goods to be disposed of.

Rule 198. Disposal through Advertised Tender

The broad steps to be adopted for this purpose are as follows :o Preparation of bidding documents.o Invitation of tender for the surplus goods to be sold.


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o Opening of bids.o Analysis and evaluation of bids received.o Selection of highest responsive bidder.o Collection of sale value from the selected bidder.o Issue of sale release order to the selected bidder.o Release of the sold surplus goods to the selected bidder.o Return of bid security to the unsuccessful bidders.

The important aspects to be kept in view while disposing the goods through advertised tender are as under :-

The basic principle for sale of such goods through advertised tender is ensuring transparency, competition, fairness and elimination of discretion. Wide publicity should be ensured of the sale plan and the goods to be sold. All the required terms and conditions of sale are to be incorporated in the bidding document comprehensively in plain and simple language. Applicability of taxes, as relevant, should be clearly stated in the document.

The bidding document should also indicate the location and present condition of the goods to be sold so that the bidders can inspect the goodsbefore bidding.

The bidders should be asked to furnish bid security along with their bids. The amount of bid security should ordinarily be ten per cent of the assessed or reserved price of the goods. The exact bid security amount should be indicated in the bidding document.

The bid of the highest acceptable responsive bidder should normally be accepted. However, if the price offered by that bidder is not acceptable, negotiation may be held only with that bidder. In case such negotiation does not provide the desired result, the reasonable or acceptable price may be counter-offered to the next highest responsive bidder(s).

In case the total quantity to be disposed of cannot be taken up by the highest acceptable bidder, the remaining quantity may be offered to the next higher bidder(s) at the price offered by the highest acceptable bidder.

Full payment, i.e. the residual amount after adjusting the bid security should be obtained from the successful bidder before releasing the goods.

In case the selected bidder does not show interest in lifting the goods, the bid security should be forfeited and other actions initiated including re-sale of the goods in question at the risk and cost of the defaulter, after obtaining legal advice.

Late bids i.e. bids received after the specified date and time of receipt should not to be considered.


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Rule 199.Disposal through Auction :

1. A Ministry or Department may undertake auction of goods to be disposed of either directly or through approved auctioneers.

2. The basic principles to be followed here are similar to those applicable for disposal through advertised tender so as to ensure transparency, competition, fairness and elimination of discretion. The auction plan including details of the goods to be auctioned and their location, applicable terms and conditions of the sale etc. should be given wide publicity in the same manner as is done in case of advertised tender.

3. While starting the auction process, the condition and location of the goods to be auctioned, applicable terms and conditions of sale etc., (as already indicated earlier while giving vide publicity for the same), should be

4. announced again for the benefit of the assembled bidders. (iv) During the auction process, acceptance or rejection of a bid should be announced immediately on the stroke of the hammer. If a bid is accepted, earnest money (not less than twenty-five per cent. of the bid value) should

5. immediately be taken on the spot from the successful bidder either in cash or in the form of Deposit-at-Call-Receipt (DACR), drawn in favour of the Ministry or Department selling the goods. The goods should be handed over to the successful bidder only after receiving the balance payment.

6. The composition of the auction team will be decided by the competent authority. The team should however include an officer of the Internal Finance Wing of the department.

Rule 200.Disposal at scrap value or by other modes : If a Ministry or Department is

unable to sell any surplus or obsolete or unserviceable item in spite of its attempts through advertised tender or auction, it may dispose off the same at its scrap value with the approval of the competent authority in consultation with Finance division. In case the Ministry or Department is unable to sell the item even at its scrap value, it may adopt any other mode of disposal including destruction of the item in an eco-friendly manner. Rule 201.A sale account should be prepared for goods disposed of in Form GFR 18 duly

signed by the officer who supervised the sale or auction.

Rule 202.Powers to write off :

All profits and losses due to revaluation,stock-taking or other causes shall be duly recorded and adjusted where necessary. Formal sanction of the competent authority shall be obtained in respect of losses, even though no formal correction or adjustment in government accounts is involved. Power to write off of losses are available under the Delegation of Financial Powers Rules, 1978.


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Losses due to depreciation :

Losses due to depreciation shallbe analyzed, and recorded under following heads, as applicable :-o normal fluctuation of market prices;o normal wear and tear;o lack of foresight in regulating purchases; ando negligence after purchase.

Losses not due to depreciation : Losses not due to depreciation shall be grouped under the following heads :-

a. losses due to theft or fraud;b. losses due to neglect;c. anticipated losses on account of obsolescence of stores or of

purchases in excess of requirements;d. losses due to damage, ande. losses due to extra ordinary situations under ‘Force Majeure’

conditions like fire, flood, enemy action, etc.;


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CHAPTER 7MEDICAL

Presentation by Mrs Santosh Arora Assistant Meteorologist Grade- I

Medical Facilities

CGHS authorized hospitals have been categorized in 3 parts with different package rates :

NABH accredited hospitals Non-NABH accredited hospitals Super-specialty hospitals CGHS Beneficiaries Rates for treatment packages for NABH & Non- NABH are more or less similar CGHS Rates are provided for semi-private ward (Pay in pay band Rs 13,951-

19,530) Rates are 10% less for General ward Rates are 15% more for Private ward Package rates for indoor treatment includes all charges*

Cost of implants, stents, grafts are reimbursable subject to CGHS ceiling In non-emergencies CGHS beneficiaries have option to go to

authorized/empanelled hospital with referral of Medical officer CGHS dispensary or specialist Govt/ State hospital

Super-specialty hospitals are prescribed for specific medical treatment (Cardio, joint replacement surgery, Nephrology, Neurosurgery, Gastroenterology, oncology)

In non-emergency prior approval of Addl. Dir(CGHS), now MO I/C is required for treatment. Rates for treatment, packages are quite high.

All DDGM, RMCs & ADGM( R ) have been delegated powers of DGM to give permission & clear medical reimbursement claims up to Rs 50,000/ & claims above this amount be sent to HQ office for DGM’s approval.

CGHS Beneficiaries (cont.) Medicines prescribed during OPD be procured from CGHS dispensary, if

purchased from local market would not be reimbursable. During emergency, expenditure incurred on medicines are reimbursable.

Treatment in non-recognized/ private hospitals including OPD treatment except in emergent conditions, where approval of HOD is required, are not permissible.

Family Members of family except parents who are dependent on Govt servant should

reside with him/her. Income limit of Rs3,500 p.m. for dependents, in case of pensioner/family basic

pension of Rs 3,500 plus DA. For daughters no age limit till she get married or start earning. Son suffering from permanent disability, widow sisters/ daughters.


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If both Husband & wife are Central Govt servant then contribution/ medical subscription be paid by one who gets higher pay. If both contribute to scheme parents of both will be entitled, if fulfils other conditions e.g. dependency (S-11011/6/77-CGHSdt 29.09.1977).

During tours or visit contact any CGHS dispensary, recognised hospital in emergency in CGHS covered cities, & for non-CGHS area AMA & recognised(CS/MA) hospitals or Govt/ State hospital.

In case of transfer to non CGHS area, family left o behind in CGHS area can not use CGHS facilities there. However if

employee transfers to CGHS area, both can avail CGHS facilities. Permission for follow up treatment may be given for 6 months from date of

discharge by HOO Permission of air travel is given by MoHFW on recommendation of treating

physician if medical treatment in that city is not available. If CGHS rates not available, reimbursement of mediclaim be made as per AIIMS

rates/actual whichever is less. If employee falls ill at a place, non CGHS city, reimbursement of treatment will be

as CS/MA rules. HOD may decide reimbursement of mediclaims for treatment in emergency at

private hospital/ private nursing home /clinic, subject to item- wise ceiling rates for CGHS beneficiaries without financial limit of total amount.

HOD may settle all such cases which do not require relaxation of rules without any monetary ceiling with concurrence of IFD,MoES, while other cases exceeding Rs 5.00Lac be sent to MoHFW.

Pensioners Pensioners can registered with any CGHS dispensary whether residing in the city

or not, on the authority of CGHS card. Life time useable card be procured by depositing 10 annual CGHS contributions paying at the time of retirement.

Pensioners living in non CGHS area may opt for indoor hospitalization treatment only (Not for OPD facilities) in nearest CGHS city, then pensioner can draw medical allowance Rs 300/ per month as well.

Employees taking pre/VRS retirement or becoming CGHS member at later stage, after age of 60 years, has to pay 10 annual CGHS contributions w.r.t. grade pay last drawn.

Medical Advance For indoor treatment in empanelled hospital /OPD treatment for T.B. &cancer Rs

10,000/ or amount recommended by treating Physician, whichever is less. For major illness like bypass surgery, kidney transplant, cancer etc, 90% of

package, on demand letter from hospital authority is necessary. For T.B. for 3 months treatment Rs 36,000/ or 80% of estimated cost of

treatment. Cheque for advance be drawn only in the name of hospital authority. Settlement

will be given by employee within one month of discharge.


72

Central Services/Medical Attendance(CS/MA) Rules ( Area/ Cities Not covered under CGHS )

Applicable for employees not staying in CGHS covered area or fall sick while on tour or visit to such cities.

Appointment of Authorized Medical Attendant: Govt/ State govt/ Central Govt Employee coordinating committee designates/appoints an Authorized Medical Attendant for small area (5Km radius), who is attached to govt hospital or Physician in any other hospital or having consulting room examines/ diagnosis as available in Govt hospital.

HOD can also appoint private registered medical practitioner. No fee should be charged from Central govt employee, if AMA/ MO receives non

practicing amount from GOI; for practice either before or during or after hospital hours.

If AMA prescribes medicines during OPD consultations (10 days only) then essential certificate be obtained for reimbursement of cost.

Central Services/Medical Attendance(CS/MA) Rules ( Area/ Cities Not covered under CGHS )

Reimbursement of fee is allowed for 4 consultation in 10 days. For prolong treatment patient be referred to OPD of Govt recognized hospital.

Cases requiring hospitalization must be referred to Govt recognized hospital. Medicines directly purchased, except in emergency on advice of Specialist will

not be reimbursed. Cost of Medicines prescribed by OPD doctor, if not available in hospital, will be

reimbursable. Obtain essential certificate. Central Services/Medical Attendance(CS/MA) Rules

( Area/ Cities Not covered under CGHS ) Pensioners are not entitled to the benefits of CS/MA Rules Treatment at AIIMS does not require prior permission. Expenses on treatment at private clinic of AMA is not reimbursable. Claims be submitted within 3 months, delay can be condoned by HOD after

seeing justification given by employee & recommendation of HOD. 2nd AMA may be consulted for diseases pertaining to children & women.

Disclaimer: This is the compilation of presentations made during the Training Program. However the relevant government rules may be kept in view. In case if any instruction documented here is in conflict with government of India orders. The government of India orders will prevail. However this material can be used as a guiding material and cannot be quoted as reference document.

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