Railway Hand Book on Internal Checks

7/23/2019 Railway Hand Book on Internal Checks

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HAND BOOK

ONINTERNAL CHECKS

2015

RAILWAY ACCOUNTS



ix

Canons of Financial Propriety

These rules also known as Canon of Financial Propriety are the

guiding principles to be followed while incurring any expenditurefrom the Public Fund. Therefore, due regard must be paid to these

golden principles as given below:

(1) The expenditure should not prima facie be more than the

occasion demands, and that every Government servant should

exercise the same vigilance in respect of expenditure incurredfrom public moneys as a person of ordinary prudence would

exercise in respect of the expenditure of his own money.

(2) No authority should exercise its powers of sanctioning

expenditure to pass an order, which will be directly or

indirectly to its own advantage.

(3) Public money should not be utilized for the beneit of a

particular person or section of the community unless—

(I) The amount of expenditure involved is insigniicant;

or

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

law; or

(III) The expenditure is in pursuance of a recognized

policy or custom.(4 ) The amount of allowances, such as traveling allowances,

granted to meet expenditure of a particular type, should be

so regulated that the allowances are not on the whole sources

of proit to the recipient.



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INDEX

S. NO. Chapters Page No.

1. Financial Scrutiny of proposals;

A. Works &

B. Establishment

1

2. General Bills 33

3. Contractor’s Bills 59

4. Budget 82

5. Inspection 101

6. Stock Veriication 181

7. Establishment Matters 209

8. Bills Recoverable 254

9. Books Section 265

10. Checklist for Workshops Accounts 289

11. Trafic Suspense 293



Chapter 1

SCRUTINY IN FINANCE SECTION A - Works

Though speciic points need to be scrutinized for different

type of proposals yet the canons of inancial propriety is to be always

be kept in mind. As a basic principle, if a proposal is received for a

new work which has not been done so far or work is proposed to be

executed through different method, inancial scrutiny should be verydeep. Following is the list of important points to be seen by Finance

Section while scrutinizing different type of proposals and estimates.

1.

i. Abstract Estimate

Detailed justiication is provided by the branch

oficer.

Indication of completion period and currency

of the work is given.

The cost of work with reference to competency

of sanction i.e., GM/DRM, exists.

Detailed allocation has been recorded.

Basis of rates and correctness of relatedquantities is given by the department.

Calculation of ROR for remunerative works is

calculated (Para 202 of FI)

Arithmetical accuracy.

For Out Of Turn works, reasons for urgency

have to be placed on ile.(Para 1104 E )

ii. Detailed Estimate

Following points needs consideration while checking

detailed estimates:-

1



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Hand Book on Internal Checks (Railway Accounts)

Whether the estimates are based on LAW

Book, Pink Book, SRSF (Green Book) with

detailed justiication. The estimate vetted

should be endorsed in the Pink Book againstthat item by the Finance Section.

Detailed estimate has been proposed in the

prescribed format (Top sheet, detailed sheet

with Works, Stores and Freight portions)

Check of rates; whether they have been taken

properly, the basis of rates has been given.

Plan(s)/Drawing(s) is/are approved.

Certiication of quantities is based on realistic

ield requirement of the work as per Plan and

Drawings.

Rates taken are based on last, lowest, latest

accepted rate for the similar works. This

is also to be ensured that rates taken arenot restricted for LAR purpose by the TC on

previous occasion.

Sub-estimate of the other concerned

department are also available in details in the

prescribed format (works, stores, CRRM)

The competent authority has signed the

estimate sheet and top sheet.

Allocation wise clear break-up has been

shown.

Necessary auxiliary provisions made are as

per prescribed rate and are on absolutely

realistic basis (contingency, D&G etc.)

Check of ‘scope of works’ with respect toAbstract estimate and Reference of approval

by the competent authority has been linked.

Clear fund certiicate towards availability of

funds during the year is obtained.



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Scrutiny in Finance Section

The estimate is arithmetically accurate.

Deviation statement with clear demarcation

for cost escalation and quantity variation

is recorded so as to ensure appropriatecompetency of sanction.

M&P items should not be clubbed in the works

estimates.

All the provisions in the estimate are as per

Rly. Board’s circulars issued from time to time.

In addition, the divisional inance should make its own ratemaster that should be jointly vetted by accounts and executive.

(P 703-E)

iii. Track Estimates

While checking the proposal of Track estimates,

following points are to be kept under consideration:-

Annual GMT and total GMT carried over thatline since last renewal in terms of IRPWM.

Wear and tear of rails, sleeper in terms of

IRPWM.

Quantity assessment of Ballast in terms of

IRPWM (route, cushion and movement of

Rolling Stock)

Whether secondary or primary renewal?

Avoidance of separate rail renewal and sleeper

renewal for the same section.

Check of estimate against inclusion of M&P

items, fancy items, small machines etc.

Similarly the revenue work should not be

charged to track provisions. D&G and other miscellaneous provisions are

reasonably worked out.

Realistic assessment of TRD and S&T sub

estimates.



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Rates for same type of estimates to be seen.

Compliance of FA&CAO’s observations on

these matters from time to time should be

ensured.

It should be seen that track work of the KMs

sanctioned are not operated in different KMs

and there is no duplicity in execution in the

same place.

( SOPWCR 1.01)

1. M&P AND RSP PROPOSALS

Scrutiny of justiication.

Whether as a result of mechanization any reduction in

Manpower is possible or not?

If the M&Ps are being procured on the basis of

Guidelines of Rly. Board or Inspections, the copies of

such Guidelines and Inspections should be enclosed.It should be seen that RDSO guidelines are issued with

the approval of Railway Board.

Allocation of the expenditure has been clearly shown.

Whether the M&Ps proposed on replacement a/c, if

so complete details of Condemnation of previous one

enclosed.

Check of replacement vs. reconditioning analysis

(Para 240 F I)

The rates have been taken as per prevailing market

rates.

Whether the Procurement or Replacement is likely

to effect expenditure on items i.e., Manpower and

maintenance.

Introduction of a machine for the irst time should be

scrutinized thoroughly. The source should be sound

having proven utility.



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2. QUOTATION PROPOSALS

Quotations are exceptions to the tendering rule, therefore,

need to be resorted sparingly. Following points need

consideration while examining quotations:-

Reasons for dispensing with calling of tender.

Justiication for calling of Quotation.

Whether the quotation has been invited as per Rly.

Board’s circulars.

Reference to the enquiry letter.

Approval of the competent authority for inviting

quotations.

Number of offers received (minimum three offers)

Whether the quotations have been opened properly

and on due date.

Whether the proposal is for fancy and furnishing

items.

Reference to the comparative sheet.

Net cost of the work.

Certiicate of suitableness, reasonableness, technical

suitability and rate reasonability is submitted for the

valid lowest offer.

Repair is not for condemned items.

Competency of the sanction in terms of item No 14(a)

of SOPWCR Part ‘E’.

Availability of funds.

Adherence to annual ceiling limit of sanctioning

authority in the inancial year. Ref: SOPWCR1.15 and

Remarks contained therein. (Item No. 2.7.4.1 of B.S.Sudhir Chandra

Committee along with Para 1211E and Item

1.15 of SOPWCR)



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3. REPAIR PROPOSALS

Following details are required for consideration of repair

proposal:-

Date/cost of procurement, installation/

commissioning.

Repair proposal is not for items which have been

condemned.

The nature of the work done by machine and

prescribed life of the machine.

The prescribed life of asset and work done by theasset.

Whether the machine is covered under warranty if so,

period of warranty.

Instances of earlier repairs, amount spent on its

repair/maintenance till date, last similar repair,

agency and mode of tender. Comparison between cost

of machine and repair cost.

Date of breakdown of the machines and how the work

is managed after the breakdown.

Justiication for the work and mode of tendering

system i.e. open, limited or single; is given. Possibility

to get most competitive rates/conditions must be

explored. Administrative approval of the competent Authority

exists.

Cost beneit analysis indicating repair cost and

enhanced life of the machine. It should be worth

spending on repairs so that life & performance of the

asset increases commensurately.

Division accountant vetting in case of divisional

proposals.

Reasonability of rates to be certiied and should match

with the last accepted rates or actual expenditure.



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Warranty for satisfactory working after its repair.

Competency of sanction and arithmetic accuracy.

Availability of fund.

- (SOPWCR 6.35 for general repairs)

4. HIRING OF VEHICLE PROPOSALS

• Administrative approval of DRM/ADRM/competent

authority is available.

• Financial justiication for hiring of vehicles exists.

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

• Condemnation certiicate is available if the hiring of

vehicle is proposed on that ground.

• How the work is presently being managed.

• How the cost of hiring has been worked out. Whether

the budgetary quotation/LAR has been obtained. (SOPWCR 6.14, SOPWCR 6.15)

(a) Bd’s Letter NO. E(G)2007/A14/6 dated 08-

08-07.

(b) Bd’s Letter NO. CE-II/Genl/I dated 27-05-

2002.

(c) Bd’s letter No.F(X)II-2010/PW/2 dated 11-10-2010

5. AMC PROPOSALS

• When were the machine /equipment procured and

original cost of machine/equipment?

• Whether the machine is under warranty period, if so

the details thereof.

• Administrative approval is obtained from competent

authority.

• Whether AMC is comprehensive or Non-

comprehensive.



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• Why it cannot be maintained departmentally.

(SOPWCR 6.01)

6. CASH IMPREST PROPOSALS Following points are to be checked while scrutinizing the

proposal for cash imprest or extension or enhancement.

Proper justiication is given. Imprest is an amount

where pre-check is not carried out. Therefore, the

provision should be barest minimum.

Whether the proposed imprest is bare minimum

to meet emergent requirements of the ofice. The

monthly/seasonal luctuation in need of imprest is

observed.

Whether the provisions of Para 1050 to 1055 Finance

code volume I are complied with.

Actual amount of payment made during the past six

months, if enhancement of cash imprest proposed.

Proposals on the plea of delays in recoupment should

not be entertained; action should be taken to expedite

recoupment.

Competency of sanction for the imprest.

In case of new cash imprest, the proposal should be

initially for a temporary period subject to reviewafter a period of six months or so.

Cash imprest for safety/disaster management should

be dealt as per Railway Board’s guidelines.-

(Para 1050-1055 F1, SOPWCR 6.43)

7. MISC. PROPOSALS

Proposal other than Supplementary Work Order’s, Estimates,M&P Proposals, Indents, M.S., Finance Establishments,

Quotations and brief Notes:-

The proposal of Misc. nature other than quoted above

received in Accounts ofice are examined as per



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circulars issued by Rly. Board, HQ and with speciic

reference to schedule of Powers.

Scrutiny of inancial justiication is carried out with

reference to provisions in Finance code connectedrules, orders and instructions.

Rates reasonability, quantity justiication and funds

availability should be seen simultaneously.

8. BRIEF NOTES SCRUTINY

Following factors have been kept under consideration while

undertaking brief note scrutiny:-

Tender Number.

Name of work.

Reference to sanctioned Estimate with copy on

record.

Copy of the NIT along with uploading of NIT on

oficial website and newspapers cuttings in which

advertisement appeared showing date of publication

etc.

Original copy of M.R to purchase Tender documents.

Number of tender forms sold /received.

Validity date of offers.

Tender time table.

Number of NS items included and whether the rate

analysis is vetted duly approved by SR.DEN/CO.

Approval of NS item by competent authority.

Requisite amount of Earnest Money.

Whether E.M. is in valid and acceptable form

No over writings and corrections and whether these

are correctly examined and signed if found.

Description of eligibility criteria & reference of the

case ile.



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Description of Bank solvency & reference thereof.

Details of the T&P and Machinery and Human

Resources submitted by the Party.

Administrative remarks on special conditions

submitted by the Party & evaluation of special

conditions.

Last accepted rate of the similar work in the same or

contiguous area.

Last, lowest, latest LAR is given.

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

Comparative position with the last lowest, latest

accepted rate and the average accepted rate.

Any error in the tender document and Comparative

statement.

Percentage variation between sanctioned Estimateand lowest offer received and reason thereof.

Basis of rates for items in Tender Schedule.

Deviation statement between sanctioned estimate

and the tender schedule in terms of No. of items,

quantity and rates.

Special Conditions with inancial implications in the

Tender Documents to be checked and indicated for

TC.

Reasons for variation between NIT Cost and the

lowest offer received.

Legal vetting of Joint Venture documents or any deed

etc. having legal implication.

Any other reason.

Brieing note should be prepared in duplicate,

checked and signed in the Executive ofice. In the

accounts ofice, the facts & igures are checked and

veriied as also signed by the competent authority.



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One copy of the Brieing note duly veriied & signed

should be returned to the concerned department and

the accounts ofice retains second copy.

(Para 1254 E, 613 F1)

9. Vetting of Contract Agreements: -

After the acceptance of the tender, the contract agreement is

received for vetting. The following checks are required: -

Only the copy for Accounts of the contract agreement

is to be vetted.

The budget allocation on the cover page is as per the

sanctioned detailed estimate.

If it is a sanctioned work of the Law book/ Pink

book, the concerned Law book/ Pink book item no. is

mentioned on the cover page.

The rates in the agreement are as accepted by the

tender committee and speciic recommendations areincorporated in the agreement.

The Works Accountant has veriied the agreement

and put the sign on it.

The competent authority along with the contractor

has signed the contract agreement.

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

- (Para 1259 E)

10. PROPOSALS FOR VARIATION IN CONTRACT VALUE

Any variation in excess of 25% of the total value and individual

item and overall value in a contract, will require inance

concurrence. The variation proposal is treated in the sameway as a fresh proposal and all the checks to be exercised on

a fresh proposal are to be conducted on a variation proposal

also. In addition to this, the following checks are also

exercised:-



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i) The variation case should be furnished in the requisite

format. i.e., duly showing the original scheduled

quantity, rate, amount, the revised quantity, amount

and the savings/ excess, both in absolute andpercentage terms.

ii) The variation statement should bear the signature of

concerned Executive as well as the Contractor.

iii) The Contractor furnishes “No Claim Certiicate”

regarding savings and non-operation of items.

iv) The original case ile along with sanctioned estimate,

the Tender Proceedings and Agreement copy are

submitted along with the proposal for variation.

v) All the items where the variation is above 4-5 %

should be explained in detail.

vi) All excess items above 25% over the scheduled

quantity should be worked out on the basis of current

rate/ LAR.

vii) If speciic rates are mentioned in the TCP, for excess

quantity, it should be ensured that only these rates

are adopted for excess quantity.

viii) Any speciic comments by the tender committee

should also be borne in mind while processing the

variation proposal.

ix) Approval of competent authority exists for the same.

If all the above requirements are met, an ofice note /

Concurrence / vetting letter is prepared and put up for

approval and signature of the Competent Authority.

- (Para 1268E)

11. VETTING OF INDENTS/ REQUISITIONS. The following checks are required for vetting the indents.

i) It should be ascertained whether requisition has also

been processed for the same item in the recent past.



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ii) If it is a new proposal, the same is given In-ward no. by

feeding all the required information on the computer.

iii) The requisition should be accompanied with a top

sheet and all the requisite details should be duly illedin.

iv) If the requisition is for items, which is being regularly

procured every year, the consumption of last three

years should be furnished in the top sheet.

v) If the requisition is being processed for a new item

for the irst time, detailed justiication, as to the

background for procuring the item is required,

alternately the requisition should be accompanied

with the copy of competent authority’s sanction with

the inance concurrence in terms of various schedule

of powers delegated by GM.

vi) If any item is being procured in large quantity for the

irst time, the procurement should be supported bythe policy decision /sanction/already certiied by an

agency appointed by Railway Board and tested on

trial basis.

vii) If a pink requisition is being processed, the requisition

should be accompanied with the original sanctioned

detailed estimate, wherein there is a provision for the

same. viii) If any of the above details is not fulilled, the indent

will be returned with speciic remarks duly taking

the approval of SR.DFM on a ofice note/ returning

letter.

If all the above requirements are met, the requisition is vetted by

putting the enfacement on the original requisition along with a

covering letter. Simultaneously an enfacement is also to be made on

the original estimate as a token of the item being vetted. The same

detail is also entered in the vetting register and put up for SO and

SR.DFM’s signature.

( SOPWCR 6.27, SOPWCR 2 )



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12. LAND LICENSING

While checking the proposals for land licensing, the following

points should be considered:-

• Licensing of Railway land is permitted only for

purposes directly connected with the Railway

working and with the personal approval of the GM

and personal concurrence of FA&CAO.

• The proposal should bring out clearly the details of

the land to be leased/ licensed. The diagram/plan,

period of lease to be indicated.

• Particulars of the party to whom the land is to be

leased.

• A certiicate that the land proposed to be licensed/

leased is vacant and not required for use of Railways

in the future.

• Certiied Documents relating to latest market value of

land from Revenue authorities.

• The recovery of leased rent/license fee should be

worked out based on the above documents. The

license fee will be ixed as a percentage of the market

value of the land being licensed.

• Railway Boards policy letter, governing the mode

of license fee/lease payable by the party, should belinked.

(Chapter 10 of ENGG CODE.)

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

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

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

13. Opening of Tenders

Tenders should be opened, at the speciied time, date and

place by the oficer nominated for the purpose. All advertised

(Open) stores tenders must be opened in the presence of

a representative of the Accounts Department. Whether



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‘limited’ stores tenders should be opened in the presence of a

representative of the Accounts Department and if so beyond

what minimum tender value, may be decided by the Railway

Administration in consultation with the Financial Adviserand Chief Accounts Oficer. The key points to be observed

while opening tenders are mentioned below for guidance:-

(i) Tender should be opened by nominated executive at

the prescribed time, date and place in the presence of

accounts representative.

(ii) Initial (with date) the cover containing the tender. All

the tenders should be counted and marked 1/n.2/n…..

N/n (n=total numbers of tender forms received against

NIT) Immediately after opening the tender, each page

of tender form should be machine numbered and date

stamped.

(iii) Initial (with date) front cover page of the tender

and every page of the tender on which the rates

or special tender conditions are quoted. All the

tender documents should be machined numbered,

credentials submitted should be numbered and

mentioned in the tender register.

(iv) The names of the tenderers and the rates quoted

by each tenderer should be read out, wherever

practicable, to the tenderes or the representative whomay be present at the time of opening of the tenders.

(v) Initial (with date) all corrections in the schedule of

quantities, schedule of materials to be issued and

speciication and other essential parts of the contract

document.

(vi) The rate quoted in igures and words should be

circled in such a manner as to not leave any spaceafter starting or ending digit.

(vii) Mark and initial all over writings in red ink. The

corrections, overwriting and omissions should be

serially numbered and the total number of such



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corrections etc. should be clearly mentioned at the

end of each page of the schedule attached to the

tender and attested with date.

(viii) Clearly indicate on each page of the schedule attachedto the tender, any ambiguities in rates quoted by the

tenderer in words of igures.

(ix) Speciically record whether samples submitted or not

along with the tender.

(x) All the information of each tenderer, viz. rate, special

conditions, credentials, validity of offer, EM details

etc. should be recorded in the tender NIT wise.

(xi) While opening the tenders, no opportunity should be

given to any tenderer to repudiate, amend or explain

the rate and/ or any condition quoted in the tender.

(xii) Delayed tenders i.e. “tenders” received before the time

of opening but after the due date and time of receipt

of tenders should also be opened and dealt with in thesame manner as tenders received before due date and

time.

(xiii) ‘Late’ tenders, i.e., tenders received after the speciied

time of opening should be opened by the concerned

Branch Oficer in the same manner as tenders

received before due date and time and marked as

such in red ink prominently on the envelop as well ason the tender papers.

(Para 607- 610 FI)

(xiv) A suitable remark in regard to both the ‘delayed’

and ‘late’ tenders should be made both in the Tender

Register as well as the Comparative statement.

(xv) If the rates are not quoted in words, it should berecorded on the same page.

(xvi) Regarding Earnest Money, it should be seen whether

requisite EM is submitted in the prescribed form or

not. Otherwise suitable remarks may be offered in

the tender document.



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(xvii) On front page of tender form an endorsement that

“Tender forms contains pages from 001 to ….” Should

be made and initialed by executive and accounts

representative. (xviii) Tenderer’s authorized representative’s initials should

invariably, be obtained in tender register.

Authority: FA&CAO/JBP Letter no. HQ/AC/FX/Inst

dated 21-01-2009

14. VETTING OF DETAILED ESTIMATE

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

OOT or Divisional Sanction etc.) the detailed estimate

for work should be prepared keeping in view the

scope of work and cost as envisaged in the abstract

estimate and submitted to the competent authority

for the administrative approval.

II. Subsequently, detailed estimate should be submitted

to the associate inance for vetting. At the time of

associate inance vetting, copies of original proposal

of that work (PWP, LAW proposal etc.) should be

annexed for better appreciation. After inance vetting,

technical sanction of competent authority should be

obtained.

III. The detailed estimate of a work should comprise of: (a) Narrative Report

Sanction reference of work (no. & year of PB/

GB/BM-OOT/LAW. Divisional Sanction etc.)

Abstract sanctioned cost.

Objective and brief justiication of work.

Location of work execution (Deviations, if any,w.r.t. sanctioned work should be brought out

along with reasons) and inspection report, if

required.

Scheme of execution of work and proposed

period of completion.



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Head of the allocation and fund availability

position in current inancial year.

Position of excess over estimates under the

heads ‘escalation’ and ‘other than escalation’w.r.t. abstract estimate and declaration about

presence of any material modiication.

Detailed estimate no. and any other relevant

information.

(b) Outer sheet:

• The outer sheet of detailed estimate

containing abstract of the cost of work.

• Summary sheets of sub –estimates of various

departments.

(c) Statements showing details of estimated

cost:

Sub- detailed estimates of all departments

involved. Detailed estimate should segregate the

provisions in terms of cash and stores.

Executive should ensure that quantities are

based upon realistic work requirement in line

with approved plans and drawings (which

should be attached) Methodology and basis

for composition of quantities of major itemsshould be mentioned in the case ile.

Detailed estimates should be prepared by

considering the current rates. Rates references

should be detailed out and attached in the

case ile.

Over head charges like D&G, contingencies

etc. should be included on need basis. If these

charges are included at maximum levels,

this should be justiied in terms of actual

requirements, References of extent RLY Bd’s

guidelines should be mentioned.



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Labour charge should not normally be

included in the detailed estimates because

now days most of the works are executed on

contractual basis and rates are usually fromcontractual works itself.

Fancy items like TV, VCR, Camera, laptop and

Projector etc. should not be provided in the

detailed estimates unless these are explicitly

provided for in the abstract estimates.

CRRM should be taken into account as per

existing condition of asset, if applicable .It

should be taken at current rates only.

Any element of foreign exchange involvement

should be brought out.

In respect of detailed estimates prepared base

on Survey Reports, it should be ensured that

the provisions made in the detailed estimatesare in conformity with the facilities proposed

in Survey Report; Survey Report should be

attached in these cases.

Deposit Work

In case of deposit works, the codal provisions

as applicable on case-to-case basis e.g. levy

of departmental charges, prior acceptance istaken for bearing the departmental charges,

prior deposition of amount by the agency for

whom the work is to be executed, etc. should

be examined.

(d) Variation Statement

During execution of the work there may be variationin original contract value due to various reasons.

Mainly the variation in a works contract may occur

due to the reasons detailed below:-



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(i) Variation of the conditions of contract.

(ii) Variation of the rates of items.

(iii) Variation of the quantities of any items.

(iv) Variations of the items.

While scrutinizing the variation proposal the following checks are to

be exercised:-

• Relative reasons and their genuineness.

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

• No undue beneits to contractor or any loss to railway

should be ensured.

• If price variation clause is applied in case of works

costing more than Rs.50 lakh and the same is being

followed while working out the inal varied cost due

to escalation.

• Consent of the contractor has been obtained for the

said variation.

• Necessary certiicate has been given by executive.

• Reasons for variation in individual items are not

contradictory. For example if dismantled quantity

has gone down, the quantity of removal of dismantled

muck does not go up.

•

Variations are not being proposed for proit makingitems without adequate justiication even if it is not

leading to variation in the contract.

• Often variation in some items is restricted by the

tender committee due to various reasons it is to be

ensured that such restrictions have been observed.

• As a consequence of proposed variation, the estimate

is not being exceeded so as to necessitate higherauthority’s sanction and if so the sanction is obtained.

• Excess variation is not caused due to work being

proposed at some other site.



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• The reasons furnished do not give an impression that

the work has already been completed.

• As a consequence of proposed variation, the

competency of sanction is not getting changed andwhile concurring such variations, the appropriate

authority under whose sanction the revised value

will lie has been pointed out.

• The limit for varying quantities for minor value NS

items shall be 100% (as against 25% prescribed for

other items.) A minor value item for this purpose is

deined as an item whose original agreement value is

less than 1% of the total original agreement value.

• No such quantity variation limit shall apply for

foundation items.

• For tenders accepted by General Manager, variations

up to 125% of the original agreement value (even

if the revised agreement value is beyond GM’scompetence to accept tenders) may be accepted by

General Manager.

• For tenders accepted by Board Members and Railway

Ministers, variations up to 110% of the original

agreement value may be accepted by GM.

• The aspect of vitiation of tender with respect to

variation in quantities should be checked andavoided. In case of vitiation of the tender, sanction of

the competent authority as per single tender should

be obtained.

(Bd’s letter No.2007/CE.I/CT/18/Pt.XII

dtd.31-12-2010)

•

An additional provision of Type- I quarter shouldnot be a reason of variation as the same are not to

be constructed any more due to implementation of

recommendations of 6th Pay Commission.



22


WORKS MATTERS DELEGATION OF POWERS FOR SANCTIONED

OF VARIATION AS ABOVE

EXTENT OF POWERS DELEGATED TO

HEAD QUARTER OFFICERS DIVISIONAL OFFICERS

Item no.

Ref. to Rule

Nature of

Powers

PHOD/CHOD/

SAG

Other

ofcers

DRM/

ADRM

OTHER

OFFICERS

Bd’s letter

No. 94/

CE/-I/

CT/4 Dated

22.10.01

1.25(b)

Variation in

quantities

for the

contracts

accepted

by GM and

below.

Up to 25%

provided

the value of

contract is

still within

his powers of

acceptance.

SG/JA Grade/

Sr. Scale

Up to 25%

provided

the value of

contract is

still within

his powers of

acceptance.

Up to 25%

provided

the value

of contract

is still

within his

powers of

acceptance.

SG/JA Grade/

Sr. Scale

Up to 25%

provided

the value of

contract is

still within

his powers of

acceptance

NOTE:

1. For variation in quantities accounts concurrence will be

required if variation is in excess/ savings of 25 % of the total

value and individual item in a contract.2. Chief Engineer (PHOD/CHOD) will have power to approve

these changes in contract approved by the GM/AGM and

Railway Board upto a maximum of 25 % of contract value or

Rs. 25 lakhs which ever is less for each individual contract.

3. Total implication of variation in quantities and variation of

items in a contract will be limited to 25 % of total value of

original contract. In case it is exceeding personal approval ofGM or higher authority which approves the original estimate

and in whose competence the enhanced value lies will have to

be obtained.

4. For controlling the payment in case agreemental value goes

beyond (+) 25%, a regulatory mechanism as part of the

contract shall be built in as part of contract itself. For the irst

15 % increase in value beyond 25 % of agreemental value, the

rates will have a reduction of 2 % in the incremental value of

the agreement and for the next 10 % increase in the value,

rates will have an additional reduction of 2% in the further

incremental value of the agreement. The variation clause to



23


this effect will be included in all works contract.

5. In terms of Codal para 628-F1 & 1265 –E the original

accepting authority should approve the variation provided

the total value of the contract is still within his power ofacceptance. If the total value goes beyond the competence of

the original acceptance authority, the sanction of the higher

accepting authority to be taken.

6. In case variation takes place due to variation in quantity,

contract has to be treated like a single tender.

-( SOPWCR 1.22 b )



24


B - Establishment

TEMPORARY AND PERMANENT POSTS

Following points are to be checked:

• Whether the proposal is for extension or creation of post.

• Status of sanctioned cadre and Men on roll.

• Detailed justiication for the proposal with reference to

workload and establishment already available.

• Reference to the guidelines and instructions of the higher

authorities.

• Is there no possibility of avoidance of the post concerned?

• Position of divisional surplus bank.

• Yard sticks and benchmarks, if any.

• Whether the posts are for maintenance of existing assets or

new, if so details thereof.

• Nature of post, temporary, permanent.

• If the proposal is for extension of currency clear reference to

the previous noting with detail justiication.

• If the post is chargeable to Private Parties details of the same

on the items as under:

i. Details of the previous payments.

ii. Demand / application of the Party concerned.

iii. Percentage of Leave Reserve./Rest Giver. as per

current cadre.

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

yardstick.

• If the post is proposed under DRM’s power, position of surplus

bank of the Division. A certiicate of availability of the valueunder the surplus.

• Position of matching surrender if any.

• If proposal is for half-yearly review of running crew, reference

to the actual hours of the crew should be made available on



25


ile. Also the results of the review are seen.

• Check of Proposal for arithmetical accuracy.

• Competency of sanction of the post.

ii. WORKCHARGED POSTS (Gazetted and Non Gazetted)

The proposal should contain the following details:

Whether creation or extension?

If the post is work charged reference to the sanctioned

estimate for clear provision available.

Cost of the staff chargeable/ allocation/is it within D & Gcharges provided in estimate.

Justiication in terms of worth of charge, balance of work,

physical and inancial progress of work. In case individual

works are taken to which the post will be charged, outlay of

the proposed work in that inancial year.

Fund availability duly certiied by works accounts including

details of estimate.

Details of speciic provision against estimates to which the

post will be charged.

Department, Designation and grade of the post, number of

posts.

Period for which the posts are required.

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

validity.

The above should be administratively approved /certiied by

the authority competent to do so.

The operation of posts should e minimum possible irrespective of

availability of provisions. The current level of work load should also

be checked. Normally, operation of group ‘D’ should be avoided.Procedure for Test-Check:

The Test check should, apart from veriication and thorough

examination of facts and igures embodied in various documents

brought under test check, be directed to an intelligent scrutiny to ind



26


out whether the clerk(s) understand their duties and rules governing

them and do the work allotted to them diligently and whether there is

any tendency to do the work casually. Test check should particularly

be conducted at least once in a month by SO and all oficers. The testchecks should not be of routine nature rather they should focus on

system improvement, procedural lacuna and lapses. The underlying

idea should be eficient disposal without any violation of rules and

procedures. The checks should also relect the updated skills of the

oficer. -[PARA 803 A1]

Recording of results of Test- Check; _

The result of test check should be recorded systematically in a

manuscript register in the form given below:-

SR

NO.

Item of

work test

checked

Extent of

Test check

prescribed

Particulars

of vouch-

ers elected

for test

check

Name of the

SO/SSO (A)

who had test

checked the

item

Result of

Test check

Whether the dis-

crepancy in col.6

has been pointed

out by the super-

visory staff

1 2 3 4 5 6 7

The test check register should be opened separately by each oficial;

the test check is required to be made in accordance with these orders.

The entries made in the register should contain adequate particulars

so as to facilitate the identiication of the entry/voucher subjected

to test check and entry/voucher should be endorsed “Test checked”

under the dated initial of the oficial conducting the test check. The

exact nature of the discrepancy noticed should be briely indicated in

the appropriate column of the test check register. If the discrepancy

calls for a lengthy note, the same should be given as a separate note

for further disposal being done on the connected ile(s) and a cross

reference to this note should be recorded in the relevant column of

the Test Check Register. The observations as a result of the test check

should be clearly indicative of the appraisal by the checking authority

of the quality of performance of the clerks whose work came up for

test check.



27


Test- Check of registers:

Another important item of test check is the inspection of different

registers by the Gazetted Oficers. The intervals at which different

registers maintained in Accounts Ofices should be put up forinspection by Oficers.

Perodct of sbmsso of Test- Cec Regster to Ofcers:

Every test checks register should be provided with an inspection

sheet below the front page indicating the month of test check, date on

which put up and the date reviewed by the Oficer concerned. The test

check registers of Section Oficers and Senior Section Oficers should

be put up to the Branch Oficer on the 10th of each month indicating

the test check done on the work of clerk in the preceding month for

review and orders, where necessary, by the Branch Oficers.

Check list for variation statement

Items Yes/ No/NA

1. Whether the following information are recorded

on the summery sheet of variation?

A. Approved cost of the work.

B. Sanctioned estimated cost.

C. Physical progress of the work

D. Extended completion period.

E. Original cost of the C.A.

F. Revised cost of the C.A.

G. Value & percentage of variation with CAvalue /Approved cost / Estimated cost.

2. Whether the prior administrative approval is

obtained from competent/tender accepting

authority for proposed variation?

3. Whether the item wise reason for the variation has

been recorded against each item of the Schedule?

4. Whether there is any variation in those items

which are restricted by TC/Accepting authority ?Ifyes,

(1) Whether the administrative approval of

next higher authority is obtained?

(2) Whether detail reason is recorded for the

same?



28


5. Whether it is certiied that items where the

variation is on minus side will not be executed in

near future & at higher rate ?

6. Whether the NCC obtained from the contractor incase of saving beyond 25 %?

7. Whether the provision of 2% deduction is made in

case of variation for more then 25% to 40% and

further 2 % for 40% to 50%?

8. In case, New NS item are included in variation,

following are required to be clariied.

1. Whether the provision is made in the

sanctioned estimate? 2. Whether the LAR/Rate analysis is

submitted with supported documents

and signed by DA?

3. Whether approval of com. Authority is

obtained to operate the same?

4. Whether it is certiied that no undue

beneit has been passed to the contractor

by operating new item?

9. In case, the tender has been split up and awarded

to more than one tenderer, whether it is certiied

that over all variation will not exceed by 25%?

10. Whether the reason for delay in execution of the

work is recorded and approved by C.A.?

11. Whether the variation is signed by controlling

authority, contractor and SSO/WA?

12. Whether the BG/performance guarantee in lieu of

SD is current and valid with validity date?

13. Whether it is certiied that Inter-se-position is

not changed? If changed, vitiated amount will be

recovered from the contractor.

It is certiied that all above item have been personally checked by the

undersigned

(Sgatre of Cotrollg Ofcer)



29


Check list for requisitions

01. Authority under which procurement is asked

SOPWCRGEN item……………….. (Sanction of competent

authority should be furnished, in case of other thanSOGEN)

02. Whether the following informations have been

furnished on the covering letter?

A. Detail justi ication including quantity

justiication.

B. Quantity procured previously (full

particulars) C. Quantity purchased locally

D. Major Group

E. Stock in hand

F. Stock In transit

G. AAC as per proposed stock master of WCR

H. Year wise consumption of last three years

I. Average life (In case of replacement )

03. Whether, the certiication regarding SAFTY or NON

SAFTY item is endorsed?

04. Whether, the certiication regarding REPLACMENT /

ADDITIONAL accounts endorsed?

05. Whether the copy of LPO/B.Q. is attached in support of

rates obtained ?

06. Whether the copy of instruction(s), guideline(s) of the

Rly Bd,s , HQ or RDSO is attached ? If referred.

07. Whether the urgency certiicate is submitted? If

required.

08. Whether the PAC is submitted duly signed by

competent authority? If required.

09. Whether the technical clearance is obtained from

competent authority? If required



30


10.

1. Whether it is certiied that item being

procured is not under RESTICTED category?

2. In case of RESTICTED item, whether priorapproval of competent authority is obtained

and submitted ?

11. Whether the correct allocation is recorded on indent?

12. Whether the funds availability is certiied during the

current Year?

13. Whether the indent is signed by competent authority?

(SOPWCRGEN ref )14. Whether the bill paying/passing authority is indicated

on indent?


undersigned.

(Signature of preparing authority)

CHECK LIST FOR TENDER SCHEDULE

01. Whether approval of competent authority has been

obtained for inviting tenders in terms of item no.1.17,

1.18 & 1.19 of SOPWCRGEN – 2004.

02. Whether estimate is sanctioned & whether provision

exists for carrying out proposed work. (Reference to the

estimate and speciic item under which the provisionexists for carrying out the proposed work to be given)

03. Whether a comparative statement for items in Tender

Schedule vis-à-vis item in sanctioned estimate has been

prepared and proper justiication for the variation\

change in item, if any, have been recorded.

04. Whether clear site is available for work and whether ap-

proach to site is available.

05. Whether GAD is approved and whether structural draw-

ings are ready.

06. Whether “Special conditions” proposed to be incorporat -

ed in the tenders especially conditions involving inan-

cial implications have been critically examined.



31


07. Whether the proposed completion period of the work

has been assessed on a realistic basis.

08. Whether all requisite items have been included in tender

schedule as per drawings and site conditions.09. Whether items included in tender schedule are as per lat-

est instructions and speciications.

10. Whether quantities of items are realistic.

11. Whether rates adopted are realistic estimated rates. (Ba-

sis of rates adopted such as reference to Contract agree-

ments and calculations should be kept in record and put

up to tender schedule accepting authority)12. Whether rate analysis for NS items are realistic and as

per prevailing market rates.

13. Whether tender documents contain proper Technical

speciications.

14. Whether tender schedule has been technically examined

in drawing ofice.

15. Whether Tender schedule has been checked by SO(A/cs)

(Signature of preparing Authority)

NOTE: - The check list should be prepared in every case before calling

of tender and placed in respective ile.

Items Yes/No/ NA

1. Whether it is certiied that work is urgent in nature?

2. Whether the justiication including quantity is

endorsed on the proposal?

3. Whether the reason for not calling tender is

endorsed?

4. Whether the administrative approval is obtainedfrom the competent authority?

5. Whether the expenditure of work is within the

power & ceiling limit of the Sanctioning authority as

per SOPWCRGEN item No…………?



32


6. Whether the quotations are invited for those

items only, which can not be executed through any

existing contract including Zonal contract ?

7. Whether the quotation have been called from atleast three contractors working in that area ?

(Precautions must be taken to see that irms are

genuine, not factitious.)

8. Whether the reasonability of rates is certiied

in compression to last accepted rates? (LAR, if

available, should be furnished other wise, rate

analysis should be given. If necessary, budgetary

quotation from dealers/irms should be obtained.)

9. Whether it is conirmed that no fancy items are

being provided in this work?

10. Whether it is certiied that the work has not been

split up for the purpose of bringing it within the

ambit of dispensation ?

11. Whether the correct allocation of expenditure is

endorsed?12. Whether the availability of funds has been certiied

by the OS/SSO budget?

13. Whether the following documents are attached?

1. Copy of approval

2. Comparative statement along with

quotations.

3. History sheet of the item (In case ofrepairing works )

4. Copy of LAR in reference.

5. Other relating, if required.

Check list for quotation work


undersigned

(Signature of preparing authority)



Chapter 2

GENERAL BILLS

1) General checks for Passing of bills in XI Section: Following

major checks are prescribed during scrutiny and passing

of various bills received from Stores department .( These

checks are illustrative but not exhaustive):-

a) It should be ensured that all bills must be in ORGINAL

format and duly signed by the competent authority.

b) The bills are approved by competent authority.

c) All the bills should be properly allocated & duly

budgeted.

d) Wherever the duplicated claims are received, it

should be seen that the concerned oficer has certiied

that no payment has been made earlier and there are

suficient, genuine and valid reasons for the claimbeing in the duplicate. The concerned oficer should

also submit non-payment certiicate along with the

claim.

e) Competent authority has sanctioned expenditure.

f) The expenditure sanctioned for a limited period is not

admitted beyond the period without further sanction.

g) Proper vouchers support the bills.

h) The payment is recorded on the work order/ supply

order Misc. sanction so as to render second claim on

same account impossible.

i) The charge are correctly classiied and the prescribed

deductions (S.D. / I.T. / S.T. / ED. Cess / S.C / other

recoveries from contractor) have been made.

j) The signature of oficer drawing the bill agrees with

his specimen signature in addition to the general steps

mentioned above, following steps needs to be taken

care of while passing the bills falling under speciic

33



34


categories as given in the following paragraphs:

2) Local Purchase Bills.

(A) Petty Bills: - General steps for passing of bills in XI Section.

a) All bills received should be in ORIGINAL duly signed

by competent authority.

b) The controlling Oficer should accept the Bills.

c) All the bills should be duly allocated and budgeted.

d) The concerned oficer should certify all duplicateclaims that the payment was not made earlier along

with Non Payment Certiicate.

e) Besides the above following procedure has to be

followed for passing the bills under various categories.

(B) Advertisement BILLS.

a) Copy of Advertisement Order issued by PRO forplacing the order is enclosed along with the bill

b) PRO is signing the bills for acceptance.

c) The paper cutting of advertisement tender is enclosed

along with the bill

d) Current DAVP rates as applicable to Govt. depts. are

levied.

(C) News Paper Bills

It is seen that number of news Papers /magazines are within

the limit under SOPWCRWCRGEN.Bills prepared as per

prevailing rates. The period of bill is veriied with previous

bills for ascertaining the rightness of claim.

(D) Washing Bills.

It is to be seen that as per the contract agreement the rates

as applicable are being charged. Bills received are as per

the standards forms laid down for running bills. Necessary

Bank Guarantee /Security Deposit as per terms of agreement



35

General Bills

are being submitted. Necessary I. Tax/S.C./EC. Wherever

applicable are being deducted from bill. Before passing inal

bill it is to be seen that the total contract value does not exceed

25 % or Less than 25 % of value of contract else Financeconcurrence has to be obtained for variation in quantity and

value.

(E) Water Bills:

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

case may be.

b) The bills are received and passed within due date toavoid DELAY PAYMENT CHARGES.

c) The bills are veriied with respect to rates as

prevailing rates.

d) The period of bills is veriied with the previous bills

for ascertaining the nature of claims.

e) Whenever S.D. has been submitted for new connectionthe same is recorded and FX concurrence is obtained.

(F) ELECTRICITY BILLS

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

a) The bills are accepted by the concerned oficer of

Electrical Department i.e. SR.DEE (TRD)/SR.DEE (G)

as the case may be.

b) The bills are received well before the due date of

payment. If it is not so it should be brought in to the

notice of SR.DEE (G)/SR.DEE (TRD)

c) No loss is incurred to the railways on account of bills

being passed after due dates, thereby attracting delay

payment charges.

d) The opportunity of availing discount is cashed in,

whenever it is available, by passing the bills before

stipulated date.

e) The bills properly pertain to the current month by

comparing the same with the previous months.



36


e) Whenever security deposit is given, it should be with

due reason and inance concurrence.

(G) REPAIR BILLS. While dealing with the claims, it should be ensured that:

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

concurrence.

b) At least three quotations have been invited in each

case where the amount exceeds Rs. 2500/- .

c) The bills carry a certiicate that the work has been

carried out satisfactorily.

d) For every repairs bill exceeding Rs.2500/- has the

inance concurrence. Para 6.40 of SOPWCRWCRGEN,

regarding the limit of RS.2 lakh per annum per

department, is adhered to.

e) Medical Bills where purchase is done by the CMS.

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

a) The bills are received through CMS BPL dully accepted

by him.

b) The items contained in the hospital bills & rates

quoted for each test and operations should be from

the pre-approved list of railways.

c) The bills should be duly accepted for hospitalizationand for drugs medicines and it should be accompanied

by covering letter from CMS that the employee has

been referred for the mentioned diseases and tests.

d) In case of advance payment, inance concurrence has

been obtained and AGM sanction and Railway Board

sanction has been obtained in each case.

e) The bills received are only from approved list of

hospitals and validity period of the irms is not

expired.

Local Purchase Medical Bills- These bills pertaining to

purchase by DMM



37

General Bills

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

a) For all the bills valuing up to CMS BPL places Rs.

10000/- the order.

b) The sanction of The CMD is obtained for the purchase

of medicines over and above Rs.10000/-

c) The inance vetting from FA&CAO’s ofice is obtained,

wherever an item of the bill exceeds Rs.50000/- or

the overall amount of the bill exceeds Rs.3 Lakhs.

d) All medical bills are duly accepted by the concerned

medical superintendent in respect of the medicinesreceived and it is to be ensured that these are in

order.

e) The purchases are not split up to avoid inance

concurrence or to bring it to lower competency of

sanction.

2) PAY ORDERS While dealing with the claims, it should be ensured that:

i. All the pay orders are passed for different payments

the same procedure is followed. If the pay order is

pertaining to RTO / TAXES, Finance concurrence has

to be obtained.

ii. If the pay order is pertained to payment towards toll

tax inance concurrence has been obtained in each

case.

If the pay order is for RRB examination, the sanction of

CHAIRMAN RRB and Finance concurrence is obtained

in each case. 50 % of total expenditure is irst to be

charged to RRB head, and debit of such expenditure

on quarterly basis is to be raised to South CentralRailway by preparing ATD.



38


3) STORE BILLS

RULES AND PROCEDURES adopted for passing of stores

bills.

The procurement of material on WCR is handled by Controller

of Stores through his subordinate and unit ofices. In WCR,

COS Ofice deals with all material procurement at HQ level,

while in units (Division, Workshops, Loco Sheds) concerned

unit Stores Oficers handle procurement of material for their

respective units.

The ofice of the FA&CAO/WST functions as the associate

inance for Controller of Stores and is responsible for

liquidating all liabilities entered into by COS on behalf of WCR.

All the bills raised by Suppliers for delivery of material are

dealt by FA&CAO/WST ofice and other unit Account Ofices

for arranging payment to suppliers.

Following ofices deal with payment of Suppliers bills on

WCR –- FA&CAO/WST – All Stock and Non Stock Procurement

by COS Ofice.

- Divisional Accounts Ofices – All Non Stock

Procurement and Emergency Stock procurement by

their Depot Stores Oficers for Division.

- Workshop Accounts Ofices – All Non Stock

Procurement and Emergency Stock procurement by

their Depot Stores Oficers for Workshop.

There are following types of store bills–

I. Stock item Bills – The bills pertaining to procurement

of stock items i.e. items kept in the custody of the stores

department which are frequently and regularly required and

whose unit cost justiies incurring inventory carrying costassociated with these items.

II. Non Stock Item Bills – Items which are not stocked by the

Stores Depots but are required by consumers are procured

as Non Stock procurement to be delivered directly on shop



39

General Bills

loor. Bills pertaining to non stock procurements are passed

by concerned associate inance ofices.

I. Stock Bills -

a. Proforma Invoice – These bills are of 100% Advance

Payment received from Stores Branch with the

instructions that cheque may be handed over to the

representative of Stores Branch. Cheques are handed

over to the Suppliers by the representative of Stores

Branch after due inspection of material.

b. Advance Bills – These bills are of 100%, 98% &

95% advance payments as laid down in the Purchase

Order.

c. Bills against Receipt Order – These Bills are of

100%, 2% & 5% as per purchase Order. The payments

are arranged against receipt of material as per

speciication by the Depot Oficers. Bills are passed

after comparing the accounts copy of receipt orderwith suppliers copy and ensuring corresponding

credit in purchase suspense.

d. Bills against Railway Boards Orders – These bills

are based on the terms and conditions prescribed

by the Railway Boards. Bills are generally for

procurement of centralized procurement.

e. RITES Inspection Fee Bills – These bills are directlyreceived from the respective zones of RITES (i.e.

Northern, Eastern, Western & Southern) After linking

the bills with the respective Purchase Order it is being

passed.

STAGES OF PASSING OF BILLS :

i. As and when bills are received from irms/COS Ofice/RITES,same are registered in computer and separate registration

no. for each category of bills is provided by the system. After

registration of bills they are handed over to the recovery

section for veriication of bills from recovery register and



40


then it is handed over to section oficer, who allots the

registered bills to the concerned bill passing clerk through

Material Management Information System (MMIS)

ii. Bill clerk, after receiving the bills, connects the bills withconcern Purchase Orders in order to carry out necessary

internal check as per Purchase Order.

iii. If bill is found in order, necessary check for admitting the

amount payable to the suppliers is exercised on MMIS and

after that concerned bill clerk passes and forward the same to

his section in charge for further scrutiny and authorization.

iv. On receipt of checked bills from bill clerk concerned SO

exercise relevant checks on MMIS and forward the same to

Accounts Oficer, if found in order, for authorization.

v. After being authorized by the Accounts Oficer, CO7 (Cash

Order) is generated by bill clerk and signed by Section Oficer

& Accounts Oficers.

vi. Approved and Signed CO7 are dispatched for preparation ofcheques.

vii. Cheques are prepared by Accounts Ofice and dispatched to

the concerned suppliers through Pay Ofice. The cheques are

dispatched to Supplier through register post.

CODAL PROVISION –

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

Stores Code – Para 739 and 2825

Accounts Code – Para 1101 to 1107

Engineering Code – Para 1335, 1338 & 1341 to 1345

The extracts of above paras of relevant codes are reproduced

below.INDIAN RAILWAYS CODE FOR STORES DEPTT VOL-I

PARA-739 . Procedure for payment of supplier’s bills in

respect of direct delivery orders.—



41

General Bills

(a) In cases where the payment is made by the Indenter’s

Accounts Oficer.—The supplying irms will submit one copy

of the bill marked ‘Original’ and the railway receipt for the

consignment directly to the consignee. Another copy of thebill marked “Duplicate, not for payment” shall be submitted

to the Controlling Oficer of the consignee.

The Controlling Oficer will maintain a consignee wise

register of such bills and watch the return of the original copy

of the bill from the consignee.

The consignee after verifying the stores received by him with

the relevant Acceptance of Tender/Supply Order/Purchases

Order of which a copy would have been furnished to him will

endorse a certiicate for the quality and quantity received by

him and forward the original bill to the Controlling Oficer

mentioning therein that the receipt has been entered in his

numerical ledger and the entry initialed. Any discrepancy

in quality or quantity of the stores received by him or the

quantity rejected by him, shall be advised to the irm direct,endorsing a copy of his advice to the Controlling Oficer and

the Purchase Oficer.

The Controlling Oficer on receipt of the original copy of the

bill, will countersign and forward the same to the Accounts

Oficer for payment. Any entry to this effect should be made

in the register mentioned above.

The irm’s bills should be paid promptly and as far as possible

within two months from the date of despatch of the stores

and in case the consignment is lost in transit, the consignee

should inform the consignor that a claim within the prescribed

period should be preferred.

In case of unusual delay, the suppliers should be advised to

bring the matter to the notice of the Divisional Superintendentor the Administrative Oficer of the Department concerned,

for which purpose the authority to be addressed should be

clearly indicated in the Acceptance of Tender/Supply Order/

Purchase Order.



42


(b) In cases where the. payment is made by the Stores Accounts

Oficer.—The procedure prescribed above should be applied,

mutatis mutandis, except that the Controlling Oficer will

forward the original copy of the bill, duly accepted, to theStores Accounts Oficer instead of to the Indenter’s Accounts

Oficer.

(c) Where 90 per cent payments are made to irms against

proof of despatch after inspection, the original Railway

Receipt should be sent to the Accounts Oficer responsible for

payment along with 90 per cent bill advising the particulars

of despatch to the consignees.

The Accounts Oficer after passing the 90 per cent bill should

pass on the original Railway Receipt to the Consignee for

taking delivery of the consignments. It should, however,

be ensured that there is no delay in the Accounts Ofice

in transmitting the original R/R to the consignee. The;

procedure for the payment of the 10 per cent bill will be as

described above.

Note.—In the case of direct delivery stores chargeable to Works,

Receipt Notes should be prepared by the Consignee in

triplicate in form S. 739. One copy of the Receipt Note should

be sent to the concerned Accounts Oficer and another to the

Executive Oficer maintaining the Works Registers in terms

of paragraph 1440 (A)-E and 1440 (B) E.

INDIAN RAILWAYS CODE FOR STORES DEPTT VOL-II

Para 2825 S Prompt Payment of Bills.—No bill should

ordinarily take more than four days to be disposed of in the

Accounts Ofice unless there are defects in it which render in

admissible in audit or call for further reference. CHAPTER XI

INDIAN RAILWAYS CODE FOR ACCOUNTS DEPTT

Chapter XI of the code deals with Bills and is reproduced

below

Para 1101 A1. Introductory. – The document through which

a claim is preferred is referred to as a ‘Bill’ in this Code. Bills



43

General Bills

which are payable by the Railway are referred to as ‘Bills

Payable’ and those which are recoverable from other parties

as ‘Bills Recoverable’.

Para 1102 A1. Bills Payable. – There are bills which areto be settled by actual payment of cash and bills which do

not involve any payment or receipt of cash but are only to be

adjusted in the accounts.

Para 1103 A1. All bills which are to be settled by payment

in cash are to be registered on receipt in the Accounts Ofice

and subjected to the required checks. Thereafter abstracts

of the bills are to be prepared based on which cheques are

drawn and payment arranged through the Pay Department.

This process is further explained in the following paragraphs.

Para 1104 A1. Registration of Bills to be settled by Cash

Payment. – All bills which are to be settled by cash payment

should be entered in a register of Bills (A. 1104) and should be

numbered in consecutive order and the date of receipt should

be entered upon them. The number thus allotted to each bill

will be referred to as the Accounts Bill Number or briely

as “AB No. or CO-6 No.”. The bills should then be sent to the

section concerned for check. After a bill has been checked, the

amount for which it has been passed in internal check will be

entered in the appropriate column of the Register (A. 1104)

provided for the purpose. The register will be so maintained

that the particulars of all bills received during each month

are shown distinctly.

Para 1105 A1. Bills received from other Railways and

other Ministries of the Central Government or the State

Governments which are not payable in cash but are adjusted

in accounts (see Chapter IV) should not be entered in the

Register of Bills (A. 1104) but should be recorded separately.Para 1106 A1. Accounts Enfacement on Bills (for Bills to

be settled in cash) – All bills entered in the Register of Bills

(A. 1104) should be passed after internal check. On the

completion of the internal check (or before detailed check



44


in the case of bills dealt with under the post-check system

vide rules in para 813 & 814) every bill should be enfaced

showing the amount for which the claim has been admitted

by the Accounts Oficer, the total amount deducted and thenet amount payable The accounts ofice enfacement on bills

should be in Form A. 1106.The head of account to which the

total amount of the claim admitted is chargeable and the

head of account to which deductions are creditable should be

shown on or near the enfacement.

Note. - (1) In the case of bills on which payments have to be made

through another Accounts Oficer (Cf. Paragraph1132) the words “Not to be included in A. 1107” should

be distinctly written above the Enfacement.

(2) The Accounts Ofice enfacement (Form A. 1106)

should be signed by the concerned Accounts Oficer.

When, however, there is only one Accounts Oficer

attached to an ofice (e.g., Divisional Accounts Ofice

or Workshop Accounts Ofice) and the Oficer is awayfrom the station on tour or is on leave or absent from

ofice for unavoidable reasons, the enfacement may

be signed by the Section Oficer (Accounts) attached

to the Section of that ofice.

Para 1107 A1. Abstracts of Bills Passed. – The bills passed by

the Accounts Oficer for payment in cash or by cheque should

be posted into the Abstract of Bills Passed (A. 1107) The

object of this abstract is (i) to reduce to the extent possible the

number of cheques to be drawn each day and (ii) to present

the various bills passed by an Accounts Oficer in a condensed

form to the Oficer who has to sign the cheques. The entries in

the Abstracts of Bills Passed (A. 1107) should be suficiently

full and clear to obviate a reference to the vouchers.

The Abstract of Bills Passed will thus give the particulars of

each bill, the amounts passed, the amount recoverable and

the net amount to be paid. It should show the name of the

Bank on which the cheque is to be drawn, details of the payee

and the allocation of the charges.



45

General Bills

The Abstract should be checked with the connected bills and

signed by the Accounts Oficer. As a safeguard against the

inclusion of a bill in more than one Abstract, the enfacement

on a bill included in an Abstract should be crossed off bythe Accounts Oficer signing the Abstract. The Abstract of

Bills Passed (A. 1107) should be forwarded to the section

preparing cheques.

The numbers of the Abstract of Bills Passed (A.1107) should

be quoted in all records in which the Abstracts are referred

to. The Abstract of each week, fortnight or month should,

after their return from the Cashier be bound together andcarefully preserved so as to form a record of bills passed for

payment. This record should be treated as a subsidiary book

to the Daily Abstract of Cash Transactions (A. 304)

Note : The Abstract may be signed by Section Oficer (Accounts) in

the circumstances in which they are permitted to sign bills,

vide para 1106 but all such Abstracts must be countersigned

by the Accounts Oficer on his return to duty.

ENGINEERING CODE-

PARA 1335 E Subject to provisions of paragraph 1312 and

1327 to 1332 ante, the bills of contractors for work done or

supplies made should be prepared in any one of the following

forms according to that circumstances mentioned below

against each :-(i) Petty Contract bill, Form E. 1336.

(ii) Running or On Account bill, Form E. 1337.

(iii) Final Bill, Form E. 1338. and

(iv) Hand Receipt, Form E. 1339.

The inal bill Form (E. 1338) should speciically provide that

the contractor concerned accepts the amount billed for asa inal payment in settlement of all his claims in respect of

the particular work. Bill for work done should necessarily

be prepared in any one of the above forms. Bills of supplies

submitted on supplier’s own forms may, however, be



46


accepted when prepared in English or Hindi, any further

particulars required by the departmental form being added

by the disbursing oficer. All bills passed against a work order

should be noted on the work order.PARA 1338 E The inal Bill from (From E 1338) should be

used for making inal payments, i. e. on closing running

accounts for works. Normally only one inal bill should be

prepared against an agreement or work order. But in cases

where groups of annual repair works are included in one

agreement or work order, there is no objection to more than

one inal bill being prepared on the completion of each groupor certain groups.

Para 1342 E Other Miscellaneous Payment.--Other payments

which an Executive Engineer has to arrange are with regard

to pay, allowances and other miscellaneous personal claims

of the constructions staff such as advances of pay, travelling

allowances, withdrawals from P.F. etc. Such claims should

be dealt with in accordance with the rules and orders in therelevant sections of the Indian Railway Codes.

Para 2817 S which will be printed in English, Hindi and

the vernacular of the district in which used. Vendors of

stores should be encouraged to use these forms which may

be supplied free of charge. In the case of inal payment on

a running contract for the supply of stores, the same form,

but printed on yellow coloured paper, will be used, and

disbursement made as on inal contract certiicates. The

procedure laid down in paragraph 739 of the Indian Railway

Code for the Stores Department should be followed in passing

claims for stores supplied.

Para 1344 E Pay Order.--This Form (E. 1344) is to be used

only in the case of such miscellaneous payments as refund ofearnest money, payment of court attachments., & Pay orders

will be bound in books and will be machine-numbered. These

books will be issued on requisition only to those oficers who

have been authorised by the General Manager to use them.



47

General Bills

Para 1345 E General Rules.-Should any of the prescribed

forms not be used, care should be taken to see that no

particulars, certiicate or signature required by the

prescribed forms are omitted. The general rules laid down inthe following paragraphs should be observed in connection

with the claims referred to herein as “bills”.

DO s and DONT s

All suppliers are required to follow the following while

submitting their bills for payments. It will facilitate prompt

disposal of the bills at Railways end.

A. DO s.

i. Bills should be in original form and marked as

ORIGINAL.

ii. Duplicate copy marked with “not for payment” should

also be submitted.

iii. Corresponding address of irm should clearly be given

on bill.

iv. Purchase order no and date must be given.

v. Reference of Modiication advice (if any)

vi. Description of material should clearly be indicated.

vii. Bank account number and branch name may be given

where payment is to be made.

viii. Details of Railway receipt, receipted delivery challan,

inspection certiicate , CST/VAT number ,Receipt

Order/ note and date should be given.

ix. All columns of bill should be correctly illed.

x. Unit rate, quantity, taxes, freight /any other charges

(if any) and total claimed value should correctly be

illed according to Purchase Order.xi. Claimed amount should be certiied in words.

xii. Bill must be signed by authorized person of the irm.

xiii. Bills should be Pre-receipted with revenue stamp.



48


xiv. Any dispute should be settled with COS before

submission of bills.

xv. Original Railway receipt, receipted challan duly

signed/attested by Gazetted Railway Oficer/pinkcopy of receipt note, Payment copy of inspection

certiicate, excisable goods invoice(original buyers

copy), CST/VAT certiicate , guarantee/ warrantee,

MODVAT certiicate ,indemnity bond,certiicate of

goods correctly dispatched should be enclosed with

the bills.

B. DON’T s

1. No correction/overwriting are to be done. (must be

attested if inescapable)

2. Photo copy of any documents ( which are required to

be submitted in original) may not be submitted .

3. Do not leave any columns of bills to blank.(xxx marked

if no information)

4. Do not submit the bills without requisite documents.

5. Do not Submit the bills if any dispute with COS/Depot

oficer is unsettled.

DISCLAIMER:-

The above information is provided as a guiding factor to

suppliers. All statutory requirements are to be complied witheven if not included above. The above information does not in

any way supersede any Codal provisions of Indian Railways

and any extent instruction of Railway Board issued from time

to time.

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

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

b) The bill is signed by the Vendor/contractor, bill

passing oficer and works accountant.

c) The items of bill, mentioned below, are in complete

conformity with the same given in the concerned



49

General Bills

purchase order, Stores code provisions and important

letters issued by higher authorities and the following

should also be veriied:-

i) Unit Rate.

ii) Total amount due.

iii) Terms of payment. i.e. when 90%, 95%, 98%,

100% or10%, 5% and 2% payment is due.

iv) Receipted delivery challan.

v) Receipt Note and Acceptance.

vi) Inspection certiicate.

vii) Excise duty invoice.

viii) CST/VAT Invoice.

ix) Guarantee & warranty certiicate.

x) Transport documents.

xi) Necessary Bank Guarantee /security deposit

as per the terms of P.O. are being submitted.

d) The bill is arithmetically accurate.

e) Funds are available for the purchase and it is certiied

and allocated to the proper head.

f) The recovery of liquidated damages for late delivery

of material is done from the supplier’s bill.

g) Wherever the S.D. is due and the bill passing oficer

has failed to recover the same, the liability of the

same should be ascertained and be recovered from

the supplier’s bills.

h) The net payment payable is certiied on the bill.

i) Enfacement stamping is done on the P.O.

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

The bills are put up to SO for internal check and subsequently

the enfacement on the bill is crossed by the section oficer.

Section oficer ensures that CO7 number is recorded on the



50


bill. Thereafter the bill is forwarded to DFM for approval and

subsequently to Books section for preparation of cheques.

In the event of a bill requiring any supporting documents

or lacking in any respect, it is returned to the concernedexecutive for fulilling the requirements.

4) Procedure through AFRES:

Having passed through the above ilters, the bills are

then passed for payment through AFRES, where the bill

registration, bill passing, and CO7 postings are done and C07

prints are generated. The concerned AA puts the same to

SO (XI) for cross checking and veriication of accuracy and

supervisory checks. The scrutiny is done cent percent basis

by SO. Afterwards it is presented to the DFM for approval.

In cases, where bill amount is less than Rs.25000/and the

Amount of CO7 being less than Rs. 1 Lakh, it is signed by

SO himself. Once a bill is approved by the DFM, and being

dispatched by the AFRES module, it is sent to books section

along with the supporting vouchers for preparation of thecheques. Practically, this is the end of bill passing cycle.

The hard copies of the CO6 entries and CO7 for a month are

generated and preserved for AUDIT & RECORD purposes. The

transactions relating to Store bill are saved in the system and

the hard copies are taken out and preserved for future use

as and when it is required in response to any query or future

veriication. Wherever it is necessary, ATD’s/ATC’s are raised,during the course of preparing CO7. If debit is to be raised, ATD

is prepared and ATC is prepared when credit to be adjusted

and submitted to book section for onward adjustments.

Meanwhile, JOURNAL VOUCHERS are also prepared to

account the adjustment of ATD/ATC, Transfer Vouchers (in

respect of Demand No.16 received from Executive ofices ,

HQ and other Accounting Units) and rectiication of errors.The same is prepared in duplicate and submitted to books

section for onward adjustments. With this ends the whole

cycle of receiving of bills, Passing of bills and accounting in

the books of accounts.



51

General Bills

5) ACTUAL MONTHLY ACCOUNT CURRENT

After closing of monthly account when the Cash Book print

and JV print is printed by EDP center such account current is

prepared. After receiving inal JV print from EDP center theprocess of Source wise and Plan head wise summarization.

of the expenditure. Is done in the section and the same is

handed over to Books section for preparing and submission

to HQ of Schedules and Account Current for the month.

6) Monthly statement of Plan head wise expenditure

After closing of monthly account and printing of JV onestatement showing the Plan Head wise Budget grant and

the expenditure to end of the month is handed over to EFFY

section for the preparation of MPR.

7) MONTHLY BILLS POSITION

The details of Bills received. Passed and returned is provided

to EFFY section with the bifurcation showing no. of billspassed through EFT/ECS and through Cheques.

8) BI MONTHLY STATEMENT.

The details of Security Deposit deducted through bills, year

wise break up is prepared and handed over to EFFY; section

for onward transmission the details to HQ.

9) HALF YEARLY STATEMENT

The Half yearly suspense review for Security Deposit by

showing year wise items over one year old, less than one

year old, amount more than 25,000/- and less than 25.000/-

separately.

10) ANNUAL STATEMENTS:-i) The Annual suspense review for Security; Deposit by showing

year wise items over one year old, less than one year old,

amount more than 25,000/- and less than 25.000/- separately.

ii) Statement of dividend payable to General Revenue. The



52


igures for such statement is extracted from Actual account

current of March

iii) Annexure-D Statement of expenditure of important open

line works and new construction. Figures are called fromDivisional Accountant for any open line new construction

work in the current inancial year.

iv) Annexure G (Block Account- TVRA) Figures are taken from

the actual account current of March. of the current year and

closing balance of previous year for the asset which are in

existence since beginning of the division. By these igures the

block account is compiled source wise..

v) Annexure –E Expenditure relating to strategic lines.

vi) DRF account. After receiving the Daybook summary from

EDP Center plan head wise statement for DRF is prepared and

submitted to HQ.

vii) Statement no.38. Figures for this statement is taken from

R.A.R. to end of March every year P.U. 28 under demand no. 3to 13.

viii) Appropriation account (credit to capital of retired assets)

Figures for this statement from actual account current of

March.

11) Posting and reconciliation of Works Expenditure:

Procedure: This Assistant gets the cash print/listing fromAssistant 4 duly posted with particulars of expenditure. From

this information postings are made in the Day Book which

contains the Work Folio No.(name of the work) and amount.

Each entry in the listings is summarized in the Day Book

Department-wise and total struck. These totals are taken to

the Abstract Book, which contain different Folios for different

work. These registers are maintained as per the workingarrangements of the Works Accounts Branch since this

Assistant who has to ensure the corresponding entry for the

same amount in the Works Registers does the reconciliation

of the Day Book postings with the Works Accounts Branch.



53

General Bills

While reconciling, suitable remarks should be made in the

Day Book against each entry whether reconciled or not and

signed. If not reconciled, the reasons for non-appearance

of the entry in the Works Register or vis-à-vis need to beinvestigated. The reasons for non-reconciliation could be

mistake in Work Folio No., mistake in Amount posted, wrong

allocation, posting in the following month, etc. It should be

ensured that a Transfer Voucher for book adjustment rectiies

either by JV or the mistake.

In terms of Para 803-AI, the work of a clerk is required to

be Test checked by the subordinate supervisory staff and theGazetted Oficer in charge of the section and the result of the

test check should be systematically recorded and submitted

for review at prescribed intervals. Test check should be

carried out according to the scale laid down in the Annexure

- I and the results of the test check should be recorded in

a separate register to be maintained for special purpose in

accordance with the instructions given in Accounts Code.

12) TEST CHECK:

12.1) NECESSITY FOR TEST CHECK:

Test check is correct index of judging eficiency of

the work of the clerks. This also serves the purpose

constituting the effective medium of correcting

defective work and educating the clerks about Rulesand Regulations to be followed in internal check. It

is, therefore essential that the orders governing

the Test check of the clerk should be scrupulously

implemented and the Test check carried out every

month and without fail by the supervisory staff and

Gazetted Oficers.

12.2) TEST CHECK SUPPLEMENTAL TO DETAILED

CHECK:

It should be remembered that the test checks do in

no way supersede the detailed checks which have



54


been separately prescribed in the Codes, Manuals and

/or other administrative instructions and should be

taken as supplemental thereto.

12.3) POLICY TO BE ADOPTED FOR TEST CHECK:

The general policy to be followed in regarding to test

check is as follows: -

• That test check by Gazetted Oficers to be

really effective & should take note of the

nature of work and the circumstances under

which it is done;

• More routine check of certain number of

items without selective examination should

be avoided;

• The sectional oficial should have a irm grip

over the important aspects of work in his

branch ofice by undertaking a test check

of these items from day to day rather thanconining himself to a routine check of a few

items; and

• The test check should cover the work of as

many clerks as possible.

• Keeping in view the above policy, test check

should be conducted according to the scale

laid down in Annexure - I.

12.4) EXTENT OF TEST CHECK TO BE CONDUCTED:

The extent of test check to be done by the Gazetted

Oficers should include all aspects of the work, which

do not in the ordinary course pass through their

hands in day to day working. It is incumbent on the

Section Oficers in charge of the various Sections totest check without omission all the various phases of

work listed in Annexure - I relating to their charge

every month or at the speciied intervals. In covering

these items of work from month to month, care should



55

General Bills

be taken to select the work done by different clerks

doing the same phase of work, so that the work of the

various clerks placed under their supervisory control

is brought under the purview of their test check inrotation.

12.5) SELECTION OF CLERK(S) FOR TEST CHECKING

THE WORK:

Test check being intended to ensure professional

eficiency and improving the effectiveness of the

internal check, should be adequate and is to be carried

out in a systematic and intelligent manner. Clerks

whose work has to be test checked should be selected

on the basis of random sampling and this selection

should not be reduced to a pre-determined routine

matter. Selection of particular clerks, whose work is

to be brought under test check by the, Senior Section

Oficer during a month should be made conidentially

by the Branch Oficers (where two oficers exist bythe Senior Oficer) All phases of work done by the

clerk(s) so selected should be subjected to test check

to the extent shown in Annexure - I . The selection of

individual clerk for this purpose should be so made

that all the different phases of work in the Section

would come under test check in their turn during the

course of each half-year. The selection of individualclerks from month to month should be so made that

work of all the clerks in the section should come under

test check of either Branch Oficer, or Senior Section

Oficer

12.6) Procedure for Test-Check:

The Test check should, apart from veriication andthorough examination of facts and igures embodied

in various documents brought under test check,

be directed to an intelligent scrutiny to ind out

whether the clerk(s) understand their duties and

rules governing them and do the work allotted to



56


them diligently and whether there is any tendency to

do the work casually. Test check should particularly

be conducted at least once in a month by SO and all

oficers. The test checks should not be of routine naturerather they should focus on system improvement,

procedural lacuna and lapses. The underlying idea

should be eficient disposal without any violation of

rules and procedures. The checks should also relect

the updated skills of the oficer.

- [PARA 803 A1]

12.7) Recording of results of Test- Check; _

The result of test check should be recorded

systematically in a manuscript register in the form

given below:-

SR

NO.

Item of

work test

checked

Extent of

Test check

prescribed

Particulars

of

vouchers

elected fortest check

Name of the

SO/SSO (A)

who had test

checked theitem

Result

of Test

check

Whether the

discrepancy in

col.6 has been

pointed out bythe supervisory

staff

1 2 3 4 5 6 7

The test check register should be opened separately by each

oficial, the test check is required to be made in accordance

with these orders. The entries made in the registershould contain adequate particulars so as to facilitate the

identiication of the entry/voucher subjected to test check

and entry/voucher should be endorsed “Test checked” under

the dated initial of the oficial conducting the test check.

The exact nature of the discrepancy noticed should be briely

indicated in the appropriate column of the test check register.

If the discrepancy calls for a lengthy note, the same should begiven as a separate note for further disposal being done on

the connected ile(s) and a cross reference to this note should

be recorded in the relevant column of the Test Check Register.

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



57

General Bills

indicative of the appraisal by the checking authority of the

quality of performance of the clerks whose work came up for

test check.

12.8) Test- Check of registers:

Another important item of test check is the inspection of

different registers by the Gazetted Oficers. The intervals

at which different registers maintained in Accounts Ofices

should be put up for inspection by Oficers.

12.9) Periodicity of submission of Test- Check register to

Ofcers:

Every test checks register should be provided with an

inspection sheet below the front page indicating the month of

test check, date on which put up and the date reviewed by the

Oficer concerned. The test check registers of Section Oficers

and Senior Section Oficers should be put up to the Branch

Oficer on the 10th of each month indicating the test check

done on the work of clerk in the preceding month for reviewand orders, where necessary, by the Branch Oficers.

13) Important tips for AFRES USERS:-

Each and every user in the section including .S.O. is

allotted separate ID name and password. Supervisor

o the section will ensure the periodical change

of password exists for each and every user of the

section. The entry of such effect is to be kept in themanuscript register opened for the purpose. The

period for changing in password will be at the interval

of at least one month.

After customization of AFRES programe, SO (In

charge of the section) will run Audit trail of their

section. This is to be run at the interval of 15 days

and obtain signature of concerned oficer. SO will be

given feasibility with their user ID and password for

accessing and running Audit trail.

It is also to be ensured by supervisor of the section



58


that the ID and password is not to be shared by more

than one staff of the section.

If there is any modiication in any rules/programme

due to Railway Bd’s policy/circular /orders or due toany reasons the modiication in the AFRES program

is done the proper testing of such changes is to be

carried out and results of such effect to be recorded

before inal implementation. The detail procedure is

annexed as AFRES USER MANUAL separately.



Chapter 3

CONTRACTORS BILLS

1.0) Contractors Bills

On account and inal bills are received from executives in

prescribed format i.e. 1337E, 1338E of Engg. Code. CO6 is

taken from AFRES and internal checks are carried out As

per Para 1354 E &1355(ii) of Engg. Code. If the bill is found

correct in all respects CO7 prepared and is passed for

payment through AFRES module.

1.1) Internal checking of Contractor bills

Standards of inancial propriety are followed in terms of Para

116F during any internal check of bill. On receipt of bills, CO6

is taken as per Para 1106-A1. Internal checks are carried out

on all bills. “Scrutiny of Expenditure” is carried out as per

Para 815 A-1, 816A-1 & 1355-E on all bills. If found correct inall respect, Co-7 are prepared and passed after ensuring the

availability of funds. Apart from the above the following are

also to be ensured ( The list is elaborate not exhaustie):-

• The bill is original and in the prescribed FORM

NO.1337-E & 1338-E and it is prepared according to

the instructions given therein.

• The expenditure relating to the work is covered by asanctioned estimate.

• The expenditure is covered by budget allotment.

• Reference to the Agreement/Work Order No. & Date

has been quoted therein.

• Where a formal Contract Agreement has not been

entered into but work has been carried out onthe strength of acceptance letter the sanction of

competent authority has been received along with

the bill for arranging provisional payment pending

sanction of Contract Agreement.

59



60


• If work has been carried out beyond completion date

it should be seen whether sanction to the extension

has been received along with the certiied copy of

sanction accorded by the competent authority. • Sanction exists for provisional payment in excess of

agreed quantities pending issue of a supplementary

work order and if properly sanctioned.

• The rates/units/quantities have been checked and

veriied with reference to the contract agreement/

work order.

• The rates to be paid for the bill are strictly as those

detailed in the schedules attached to the Agreement

and that rates higher than those included on the work

order are not paid without the speciic sanction of the

competent authority.

• With regard to SOR ITEMS - Whether the bill has

been preferred correctly as per the percentage above

SOR as per contract agreement/work order based on

accepted tender conditions.

• The bill is arithmetically correct cent percent.

• Divisional Accountant checks the recovery statements

and there was no delay in taking measurements and

in preparing bills after measurements.

•

All the requisite certiicates & the signature of theauthorized executives have been recorded on the bill.

• The requisite certiicates regarding veriication of

Measurement Book have been recorded over the

signature of the Divisional Accountant.

• The quantities exceeded are according to the Plan &

Estimate and excess are within the permissible limits.

• The quantities for 'ON ACCOUNT' have never exceededthe estimated quantities on actual work done at the

time of payments.

• Gazetted Oficer has attested all the corrections in

the bill.



61

Contractors Bills

• The Security Deposit has been correctly recovered

from the 'ON ACCOUNT BILLS' vide (1244-E)

• If the currency of Guarantee Bond has expired,

whether the executive has asked for withholding theamount of bill in deposits towards Security Deposits.

• The contractor has signed the ‘NO CLAIM

CERTIFICATE’ in the inal bill.

• If inal bill is signed 'UNDER PROTEST' by the

contractor, the requirements of PARA-1485-E are

fulilled.

• If inal bill is signed 'UNDER PROTEST', claims of

the contractor have been ascertained and have been

dealt with keeping in view the remarks offered by

the responsible Executive regarding acceptance or

rejection of the claims.

NOTE: Such Final Bills signed ‘under protest’ should not be admitted

in internal check unless the requirements of Para-1485-E arefulilled.

• A certiicate of check of measurements & the results

of other examinations regarding satisfactory

completion of work has been recorded by ADEN on

the inal bill.

• Any outstanding recoveries against the contractors,

which necessitate with holding of payment against

his bill has been affected with reference to the

Executive’s letter for withholding the amount.

• The Executive has requested for with holding of

amount from the inal bill, & the same has been

affected by way of crediting to Deposit expenditure.

The executive’s reference and all other details havebeen recorded in the said register/account meant for

the purpose.

• The 'On Account (Running) & Final Bills are checked &

compared with the contractor's ledger (From E-1483)



62


• Income Tax, surcharge, education Cess & other

statutory levies are deducted as per prescribed rate.

2.0 Cash Imprest: General /Fuel (Relative Para for check of cash

Imprest A/C 1601- A-1, 1050 to 1055-F1

2.1) Objectives:

• To ensure that the procured items are for the purpose

for which imprest has been sanctioned.

• Appropriate Amount is debited to correct head of

allocation to ensure that expenditure accounts relect

true and fair picture under each proper head, sub-head.

• To ensure that regular purchases are not being made

from imprest.

• To see that tender item has not been purchased.

• That the expenditure is within the prescribed limit.

2.2) Internal Check: - On receipt of bills, CO6 is taken as per Para 1106-A1 i.e.

“Registration of Bills”. Internal checks are carried out in

terms of Para 1601- A-1,1050 to 1055-F1.If found correct

in all respect, Bills are passed and Co-7 are prepared after

ensuring the availability of funds. Cash Imprest Bills are

passed once in a month. If recoupment needed more than

once in a month on unavoidable circumstances then approvalof Branch Oficer/ADRM approval is required. Apart from the

above the following internal checks are also to be exercised

while scrutinizing imprest Bills: -

• Correctness of entries in the Imprest account is

checked with reference to supporting vouchers.

• Arithmetical accuracy .

• Imprest has not been utilized to liquidate such claims,

which should ordinarily be pre-checked.

• Supporting vouchers are genuine and full legal

Acquaintance for the payment made.



63

Contractors Bills

• Ensure that no tender item has been purchased.

• Assure that the cash Imprest bill is submitted in the

standard proforma.

• Ensuring that the signing authority have endorsed

the bills.

• Assure that the imprest holder has countersigned all

vouchers.

• Assure that no purchases/expenses other than those

arising out of emergent situations or unforeseen

circumstances are being made out of imprest i.e.regular purchases are not being made.

• Assure that the imprest holder mentions details

of previous recoupment and current purchases/

expenses do not exceed the prescribed imprest limits.

• Assure that the expenditure has been allocated to the

correct head of account (Allocated abstract)

2.3) Procedure for passing:

Standards of inancial propriety are followed in terms of

Para 116F before commencing any internal check of bill. All

Imprest bills are received from the concerned executives in

form 1404 E. CO6 is taken and internal check is carried out.

If found correct in all respects as per codal provisions, CO7 is

prepared and passed for payment through AFRES module.

3.0 Pay Order

3.1) Procedure for passing:


Para 116F before commencing any internal check of bills. Pay

orders are received from concerned executives in prescribedformat i.e. G 1688A/G396 B. CO6 is taken and internal check

carried out. If bills conirm to the codal provisions and found

correct in all respects, CO7 prepared and passed for payment

through AFRES module.



64


3.2) Internal check on Pay Orders:

3.2.1) Retention Money:

On receipt of bills, CO6 is taken & internal checks are carriedout on all bills. The pay orders are passed according to

the Para 821 AI. In addition to above, the G.C.C. conditions

are also ensured to be adhered to. If credit is available in

suspense ledger, and found correct in all respects the Co-7s

are prepared and passed for payment. Any deposit remaining

unclaimed beyond time limit as prescribed in Para 321 A I to

be credited to detailed head “MISC. Receipts” after approvalof F.A.&.C.A.O.

3.3) Arbitration Fees /Award/ Court Fees/:

Procedure for passing will be same for all the heads .

3.3.1) Internal Check:

• Whether the amount proposed to be paid is as per

Arbitration Award only.

• Whether any claims other than accepted in Arbitration

have been considered in proposal.

• Whether Contractor has accepted the Arbitration

Award.

• Whether the Payment of award has been vettedby Legal branch and accepted by the competent

authority.

In addition to above, Railway Board’s guidelines and relevant

SOPWCRGEN Para are to be referred for competent authority’s

sanction/ CLA’s opinion. Copy of court order to be examined

and If found correct in all respects, the Co-7s are prepared

and passed for payment

4.0) Telephone Bills.

a) The telephone bills are veriied with reference to the

telephone No.



65

Contractors Bills

b) The opening calls are veriied with previous reading.

c) If the calls exceed the limit as speciied by GMs circular

for residential phones, the same should be certiied

for excess calls whether it is oficial or private calls. Ifexcess calls are on Private Account, the same is to be

recovered by debiting the amount to MAE and credit

is watched through ESTT. (GAZ)/ESTT.(NON GAZ.)

For recovery through pay sheets.

d) The bills should be duly countersigned by ADSTE (T)

When the bills are sent to accounts ofice for veriication

and are within due date and the same are passed within the

stipulated period to avoid DELAY PAYMENT CHARGES.

5.0) MISC.ADVANCE (EXPENDITUREP-223 & 610–A1 (Para

No.223 Chapter VI of Accounts Code Part I)

5.1) Procedure:


Para 116F before commencing any internal check of bills. Pay

orders are received from concerned executives in prescribed

format i.e. G 1686/A/G, 396 B. CO6 taken and internal check

carried out keeping in view the Para 223 A-I. If found correct

and as per codal provision then CO-7 is prepared and passed

for payment, through AFRES module.

5.2) Internal Check :

If the expenditure incurred cannot be booked to Final Head

at the time of incurring the expenditure or if the allocation

of expenditure is not known at the time of incurring the

expenditure or the expenditure cannot be booked to any

other head, the same is also booked to MISCELLANEOUS

ADVANCE. Generally, the following items are booked to this

Suspense Account in this ofice:(a) Expenditure incurred for Minister’s visit, for the

deposits made for Water, Telephone, Electricity and

Gas connections etc.

(b) ATD/TCs received from other units for those items



66


for which details of allocation are not known.

(c) Miscellaneous Advance is debited.

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

(e) Expenditure Sections (X-I,X-II) passes some

Expenditure bills for which allocation is not known.

(f) Misc. items (expenditure of which can not be booked

to any other head)

(g) Debit postings of Suspense Register have to be done

by taking details from other sections viz Books.

5.3) Clearance:

• After getting details of expenditure from executives

JV have to be prepared by minus Debiting Misc.

Advance and Debiting to inal proper head.

• Deposits paid for water, telephone connections are

cleared by booking the expenditure to Final Head,

after receiving the vouchers.

• Wherever details of expenditure/transaction are not

available and possibility of booking the expenditure

to Final head is remote, in such cases, write off option

may be exercised, after taking sanction of competent

Authority. Credit side postings of this Suspense

Register is to be done from the JV entries prepared by

the suspense section or JVs of the respective section

who has debited the amount to this suspense head.

the same is posted on debit side in the MAX ledger,

and the balance amount, which has been deposited by

executive to station earning through MR is posted on

credit side in the MAX ledger. The same is relected in

the book through MCR/ divisional sheet received by

book section from HQ.

• Having done so, the register is totaled monthly and

reconciled with that of General books available in the

books section.



67

Contractors Bills

6.0) Procedure for paper securities.

The procedure according to which security deposits are to be

dealt has been laid down in chapter xviii Accounts code Vol.1.

Para 1817 of AI elaborates the procedure to maintain theregister for recording the receipt and return of all security

deposit received. All paper securities are released/ returned

only after receiving the letter from executive duly recording

the reasons for the same. The entry is made in the register

A1817 and signed by the dealing clerk / SO/ ADFM.

6.1) Internal check of Paper Securities in Accounts Ofice.

• It may be ensured that the securities are valid

including the maintenance period of respective work

,if any.

• In case of B.G. it is in prescribed format (as per

appendix X of A1) and bonaide is to be veriied. it

is correctly drawn up, stamped and vetted by law

oficer.

( It is important to ensure that copy of paper security is sent

to bank along with conirmation letter , so as to ensure the

genuineness of the signatories etc.)

• To obtain written conirmation from the issuing bank

to verify the genuineness of paper security .

• It is to be seen that the executive has certiied that the

checks mentioned in above Para have been carriedout.

• It is valid in respect of the amount and the period for

which it has been drawn.

• In case of Bank Guarantee submitted by the contractor,

it is to be ensured that it is correctly drawn up and is

adequately stamped as advised by the Law Oficer. It

is genuine and accepted by the Law Oficer.

• In case of securities in the shape of Bank Guarantee,

the date of expiry should be watched and timely

action taken for its renewal/encashment as the case

may .



68


• If the Associate Accounts Oficer considers that the

action taken by the executive for renewal/extension

is not likely to materialize before the actual date

of expiry , the Accounts Oficer shall advise thebank concerned to deposit the amount due under

the Guarantee . he may depute a staff to the bank

concerned to encash the BG.

• The amount and period shown therein is in accordance

with the terms and conditions of the contract.

• The depositors’ title thereto is clear.

• The endorsement has been made in proper form.

• No payments on any running bills is to be made to the

contractor without carrying out the above checks on

paper securities.

• To enter the details like date of expiry, description of

the contract and contractor’s name of such securities

in manuscript register in form A. 1817.

• Each entry in the register of paper securities or return

of any security should be attested by an Accounts

oficer. Separate page should be opened for each type

of security.

• The register should be put up to the Branch Oficer

every month.

6.2) Return of appropriation of Paper Securities :

• Before releasing any paper security, the departmental

oficer should furnish necessary certiicate that there

is no dues left with the contractor.

• On receipt of intimation from the departmental oficer

that the securities deposited in a particular case are tobe returned. may be sent back and the date of return

entered at the same time in the register of Securities

(A1817), before returning the securities they should

be endorsed back to the parties concerned.



69

Contractors Bills

• Before returning the security deposits the Accounts

oficer should in all cases satisfy himself, from the

facts available, that the purposes for which a security

was deposited has been satisfactorily served andthere are no claims of the railway against the party

whose security deposits are being returned.

• BG obtained towards Security Deposit for due

fulillment of the work should be released only after

the expiry of the maintenance period if any and after

passing the inal bill based on “ no claim certiicate”

furnished by executive.

6.3) Safety measures to be adopted to avoid likely frauds

• The genuineness of the paper security should

be strictly checked. If any doubt arise about the

genuineness of the security, bank authorities may be

contacted personally with the original paper security,

since it is very dificult to differentiate between agood quality coloured Xerox and original one and

originality can not be ensured by sending the Xerox

copy of paper security while asking for conirmation

from bank.

• It is generally seen that paper securities received

with tenders are annexed in tender ile and allowed

to move along with the movement of tender ile. Suchfrequent movement of original paper securities along

with tender ile should be avoided because there

are chances of replacement of original security with

duplicate one during transit.

Original paper securities are to be kept in proper safe

custody (even in executive ofices before sending to

accounts ofice) and efforts should be made that such

securities are in reach of only authenticated staff/

oficers.



70


6.4) Procedure for Bank Guarantee.

All Bank Guarantee is dealt under Para 1815 of AI. Railway

Board vide their letter no.2005/AC/II/25/19 dated 08-

09-2005 have also issued guidelines for streamliningthe procedure regarding Guarantee bonds submitted by

contractors. Steps to be taken by Executives and Accounts

Dep’t to deal with G.B.s are laid down in detail in this letter.

Three months advance letter is being issued to executive

with a copy to concerned bank for all those cases going to

be expired so that it can further be extended or released as

per requirement of work before its expiry date. If nothing isheard from the executive within time, which is one month

before the expiry of validity date, then it got encased and

deposited in the Railway Accounts duly intimating to concern

executive.

6.5) Procedure for FDRS/TDRS/STDRS etc.

All above paper securities are dealt in accordance with thePARA 1813 of AI. In this Para it has been mentioned, that

once received , the documents should be irst scrutinized

to see they are genuine, that the depositors title thereto is

clear and the endorsement have been made in proper form.

For this a register in form A 1817 is maintained. To follow

these instructions all the executives have been asked by

this ofice that all the FDRS will only be entertained if theconcerned issuing bank veriies the same. The register is now

also attested by concerned ADFM. The dealing clerk as well as

concerned section oficer signed in the FDRs by putting the

serial no. of Register on FDR/Paper securities.

6.6) Procedure for DDs/BCs/Pos

In this connection, all the above paper securities encasedbefore their expiry are kept in RM Deposit Suspense. The

amount will be released only after receiving the letter from

the executive duly recording the reason for releasing the

same. This amount is released through Pay Orders.



71

Contractors Bills

7.0) Maintenance of Various Registers:-

7.1) Maintenance of Retention money register: Para 1244 E

Retention money is deducted from contractors’ bills againstsecurity deposits. It has Credit balance and suspense ledgers

are maintained against each contractor. These ledgers are

posted with the help of cash print, JV and reconciled with

G.B. igures every month. Retention money is released to the

contractors as and when P.Os are received from executives by

adopting procedures as that of passing R.M. In terms of Para

321A, a list of more than 3 years old items, every six month isprepared and amount can be transferred to Railway earning,

with the approval of FA & CAO.

7.2) Deposit Work Register: Para 1852 E

Credit is received as and when other parties deposit amount

to railways to get their work done. The head is debited as

and when the bills are passed. Departmental charges aredebited annually on receipt of T.V. from concerned executives.

The same is reconciled with G.B. every month. A register is

maintained as per form E-1852.

7.3) Objectionable Item Register:

Objectionable items Register is maintained in form A 854.

Posting to be carried out in terms of A 856 and A 857. Halfyearly and yearly statement of unsanctioned expenditure

which is submitted to H.Q.is based on this.

7.4) Saving Register:

Saving register is maintained in form A 855.During internal

check of bills if any amount found in excess of actual amount

due then the excess amount will be noted down in theregister.

7.5) Commercial Tax Register.

Commercial Tax Register is available in AFRES Module as

well. Whenever any tax deducted from contractor the credit



72


is available in the register. Monthly/ Quarterly amount is

paid to Coml. Tax Oficer Circle-1 Bhopal along with the list

of contractors. Forms 32 are being issued to contractors on

annual basis.

7.6) Deposit ‘L’ Register.

Through Division Sheet amount deposited by outside

contractors for temporary electrical connection is posted

in Deposit ‘L’ Register. A list is sent to Electrical Deptt. for

conirmation that the amount deposited by the party is to be

refunded or otherwise. If not to be refunded, then the samewill be transferred to inal head of allocation i.e. 00862632.

7.7) TEST CHECK REGISTER.

7.7.1) INTRODUCTION :

In terms of Para 803-AI, the work of a clerk is required to

be Test checked by the subordinate supervisory staff and the

Gazetted Oficer in charge of the section and the result of the

test check should be systematically recorded and submitted

for review at prescribed intervals. Test check should be

carried out according to the scale laid down in the Annexure

- I and the results of the test check should be recorded in

a separate register to be maintained for special purpose in

accordance with the instructions given in Accounts Code.

7.7.2) NECESSITY FOR TEST CHECK:

Test check is correct index of judging eficiency of the work

of the clerks. This also serves the purpose constituting the

effective medium of correcting defective work and educating

the clerks about Rules and Regulations to be followed in

internal check. It is, therefore essential that the orders

governing the Test check of the clerk should be scrupulously

implemented and the Test check carried out every month

and without fail by the supervisory staff and Gazetted

Oficers.



73

Contractors Bills

7.7.3) TEST CHECK SUPPLEMENTAL TO DETAILED CHECK:

It should be remembered that the test checks do in no way

supersede the detailed checks which have been separately

prescribed in the Codes, Manuals and /or other administrativeinstructions and should be taken as supplemental thereto.

7.7.4) POLICY TO BE ADOPTED FOR TEST CHECK:

The general policy to be followed in regarding to test check is

as follows: -

• That test check by Gazetted Oficers to be really

effective & should take note of the nature of work

and the circumstances under which it is done;

• More routine check of certain number of items

without selective examination should be avoided;

• The sectional oficial should have a irm grip over

the important aspects of work in his branch ofice by

undertaking a test check of these items from day today rather than conining himself to a routine check

of a few items; and

• The test check should cover the work of as many

clerks as possible.

• Keeping in view the above policy, test check should

be conducted according to the scale laid down in

Annexure - I.

7.7.5) EXTENT OF TEST CHECK TO BE CONDUCTED:

The extent of test check to be done by the Gazetted Oficers

should include all aspects of the work, which do not in the

ordinary course pass through their hands in day to day

working. It is incumbent on the Section Oficers in charge of

the various Sections to test check without omission all thevarious phases of work listed in Annexure - I relating to their

charge every month or at the speciied intervals. In covering

these items of work from month to month, care should be

taken to select the work done by different clerks doing the



74


same phase of work, so that the work of the various clerks

placed under their supervisory control is brought under the

purview of their test check in rotation.

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

WORK:

Test check being intended to ensure professional eficiency

and improving the effectiveness of the internal check, should

be adequate and is to be carried out in a systematic and

intelligent manner. Clerks whose work has to be test checked

should be selected on the basis of random sampling and thisselection should not be reduced to a pre-determined routine

matter. Selection of particular clerks, whose work is to be

brought under test check by the, Senior Section Oficer during

a month should be made conidentially by the Branch Oficers

(where two oficers exist by the Senior Oficer) All phases of

work done by the clerk(s) so selected should be subjected to

test check to the extent shown in Annexure - I. The selectionof individual clerk for this purpose should be so made that

all the different phases of work in the Section would come

under test check in their turn during the course of each half-

year. The selection of individual clerks from month to month

should be so made that work of all the clerks in the section

should come under test check of either Branch Oficer, or

Senior Section Oficer

7.7.7) PROCEDURE FOR TEST-CHECK:

The Test check should, apart from veriication and

thorough examination of facts and igures embodied in

various documents brought under test check, be directed

to an intelligent scrutiny to ind out whether the clerk(s)

understand their duties and rules governing them and dothe work allotted to them diligently and whether there is any

tendency to do the work casually.



75

Contractors Bills

7.7.8) RECORDING OF RESULTS OF TEST CHECK:

The result of test check should be recorded systematically in

a manuscript register in the form given below.

Sl.No Item of

work test

checked

Extent of

Test check

prescribed

Particulars

of vouchers

selected for

test check

Name of the

SO / SSO(A)

who had test

checked the

item

Result of

Test check

Whether the

discrepancy in

col.6 has been

pointed out by

the supervisory

staff

1 2 3 4 5 6 7



with these orders. The entries made in the register

should contain adequate particulars so as to facilitate the



the dated initial of the oficial conducting the test check. The

exact nature of the discrepancy noticed should be briely


If the discrepancy calls for a lengthy note, the same should be

given as a separate note for further disposal being done on






test check.

7.7.9) TEST CHECK OF REGISTERS:




should be put up for inspection by Oficers has been

prescribed in Appendix VIII of the Railway Code for the



76


Accounts Departments-Part-I. In addition to these Registers,

the Registers as detailed in Annexure to this chapter should

also be put up at the prescribed intervals for perusal of the

Oficers concerned. Details of these registers may be notedin the REGISTER OF REGISTERS.

7.7.10) PERIODICITY OF SUBMISSION OF TEST CHECK REGISTERS

TO OFFICERS:


inspection sheet below the front page indicating the month

of test check, date on which put up and the date reviewed bythe Oficer concerned. The test check registers of clerks and

Section Oficers should be put up to the ADFM/ SR.DFM on

the 10th of each month indicating the test check done on the

work of clerk in the preceding month for review and orders,

where necessary, by the Branch Oficers.

ANNEXURE –I

Sl.No Description of the Work Extent of check by Ga-

zetted Ofcer .

Extent of check by

SO(A)/SSO (A)

1 Contractor’s Bills 1 running bill and one

inal bill every month

2 running bills and inal bills

every month

2 Misc.Bills 1 bill every month 3 bills every month

3 Imprest Account 1 bill every alternate

month

2 bills every month

4 Agreement and work

orders

1 item every month 2 items every month

5 Posting of Suspense

Register

General Review every

month

3 entries in every register

and general review

6 Journal Vouchers 1 JV every month 2 JVs every month

7 Completion Report 1 completion report

every alternate month

One completion report

every month

8 Contractors Ledgers To be checked in respect

of bills test checked vide

item 1 above

To be checked in respect of

bills test checked vide item

1 above

9 Objectionable Items

Register

General review every

alternate month

General review and check of

2 entries every month



77

Contractors Bills

8.0) Completion Report:

All completion reports drawn by executives are received in

the form 1706 E and the same are veriied as per Para 1712

E. It is made sure that procedure/rules as per Para 1708 Eto 1711 are followed. CR’s of uninished works are drawn

as per Para 1713 and completion estimates veriied as per

Para 1714E, If found correct in all respects, it is veriied and

returned to executives for obtaining sanction of competent

authority.

8.1) ACCOUNTS VERIFICATION OF COMPLETION REPORT : In the Accounts Ofice, the Completion Reports should be

scrutinized after test checking the correctness of postings. It

should be seen that: -

I. They have been prepared in the prescribed form and

the entries therein correspond with the particulars of

the sanction and booked outlay.

II. There is no delay in the preparation of the Completion

Report, after completion of the work.

III. Brief explanation has been forthcoming wherever

necessary for excesses or savings vide Para 1706E.

IV. All inal bills relating to a work have been correctly

posted in the accounts of the work.

V. The satisfactory explanations have been furnished forexcesses and savings, both in quantity and amount.

VI. The materials charged to the work, but not utilized

have been returned to the Stores/transferred

elsewhere and the value credited to the work.

VII. The credit for the released materials provided for

in the estimate has been adjusted against the workconcerned.

VIII. The requisite certiicate has been recorded to the

effect that necessary addenda and corrigenda to the

list of buildings have been issued, if the completion



78


report relates to construction of quarters/service

buildings.

IX. A certiicate to the effect that necessary entries have

been made in the siding register/register of depositworks is recorded in all Completion Reports relating

to assisted sidings/deposit works.

9.0) Issue and Disposal of:

9.1) TDS/ INCOME TAX RETURNS:

Preparato of TDS Certcates ad Flg Aal Retr

of Tax collected: After closure of the cash transactions of

the inancial year the data bank available in the Section Files

of Codes 300 & 301 are compiled with the help of DBA and

the certiicates are prepared and printed. Before printing

the certiicates the total amount of TDS is reconciled with the

ledger igures. A summary of tax collection is also printed for

the purpose iling the return of Tax collected.

9.2) ATD/ATC

Adjustment of ATD/ATCs:

The expenditure pertaining to this Division incurred by other

units are transferred through ATD/ATCs. The debits include

those of the bills passed for stores, transfer of materials,

workshop debits of POHs, Stock Adjustment Accounts, debits

on Work Orders placed, transfer of deposit credits/debits,

Stores Monthly Summaries, etc.

9.2.1) Procedure

The ATD/ATCs are received from Books Section after

registering in the Inward Register. The same is acknowledged

by the Assistant and entered in his own ATD register allotting

a serial number starting one for the current inancial year.The register should contain ATD No., Month of receipt,

and Nature of debit, Amount, Unit transferring the debit,

acknowledgement and a remark column. The ATDs, once

registered, are sent to the Budget Supervisor by obtaining



79

Contractors Bills

acknowledgement against each entry. These ATDs are

either accepted by the Executives or returned unaccepted. If

accepted, the funds availability is certiied with initials of the

budget supervisor or his representative with classiication ofthe expenditure. The classiication has to be checked with

reference to the nature of debit and Finance Code Volume II.

If agreed with the classiication a JV is prepared by debiting

Demand and minus debiting the unit transferring the debit.

The details of ATD/ATC should be given in the narration as

far as possible. After the JV is prepared, necessary entry is

made in the ATD Inward Register against that ATD and putup for signature of SO/ADFM. After JV is signed, the same is

handed over to Books Section for recording the adjustment

against each ATDs delivered by them the JV is handed

over to Budget Section by the Books Section. If the ATD is

returned unaccepted, it should be seen whether the reasons

offered by the Budget Supervisor or Executives concerned

are correct and suficient. E.g. Reasons like “Not pertainingto BPL Division” should not be accepted but sent back to

Budget Section (WAB), if necessary, through a formal letter

to get the reasons recorded as to why and how the ATD is

not pertaining to this Division. Otherwise, the chances of

refusing the ATDs returned to the parent unit are greater.

Of the expenditure of any unit should, as far as possible, be

relected in the same quarter of the year so that disputes maybe reduced to a minimum in the TD meetings. The last date

for handing over the JV to Budget Section is normally 21st of

the following month or a date advised by them as per target

dates set by FA&CAO for submission of Account Current.

Later, the ATD/ATCs are arranged in the order of their entries

in the JVs and JVs in the order of their serial number/month-

wise and bunched together and preserved for record. The JVsare normally kept within the section’s records till closure of

the next inancial year and after that sent to record section.

Note: The raising of debits and credits pertaining to Intra and Inter

railway are now being carried out through E-Recon. Login



80


I.D and password are given to each accounting unit and

different sections of the accounting unit so that the debits/

credits pertaining to an accounting unit on Intra Railway

transaction is directly raised on E-Recon by respective unitsand in case of Inter Railway transactions the same is raised

by unit through its HQ which subsequently raise it to the HQ

of concern zonal HQ. Preparation of JV’s and generation of

reports like Inward/Outward transactions can be generated

on E-Recon. The programme for raising, accepting such

debits/credits is given every month on E-Recon.

10) Disposal of Railway Board/Audit and Accounts Report.

Audit References: The queries received from Audit are

replied, if necessary, by obtaining remarks from concerned

executives or replies are framed from the records of the

section. Each reference of audit is to be dealt with according

to its signiicance.

11) Important tips for AFRES USERS:-

• Each and every user in the section including S.O. is

allotted separate ID name and password. Supervisor

of the section will ensure that periodical changes of

password takes place for each and every user of X-II

section. The entry of such effect is to be kept in the

manuscript register opened for the purpose. Theperiod for changing in password will be at the interval

of at least a fortnight.

• After customization of AFRES programme, SO (In

charge of the section) will run Audit Trail of their

section. This is to be run at the interval of 15 days and

he will obtain signature of concerned oficer. SO will

be given feasibility with their user ID and passwordfor accessing and running Audit trail.

• It is also to be ensured by supervisor of the section

that the ID and password is not to be shared by more

than one staff of the section.



81

Contractors Bills

• If there is any modiication in any rules/programme

due to Railway Bd’s policy/circular /orders or

due to any reasons the modiication in the AFRES

programme is done & the proper testing of suchchanges is to be carried out and results of such effect

should be recorded before inal implementation

of application. The detail procedure is annexed as

AFRES USER MANUAL separately.



Chapter 4

BUDGET

The main functions of budget section includes (A) framing

of budget estimate, august review, revised estimate budget

estimate, modiication to inal estimate (B) ensure that the

actual expenditure within the budget grant (C) rectiication

of wrong booking (D) funds certiication.

1.0) Presentation of Budget The estimated receipts and expenditure received from

different zonal Railway and other units are consolidated and

inalized at Railway Board level and presented before both

houses of Parliament by Union Minister of Railways.

1.1) Estimate of Receipts:

They are divided into two parts; Revenue receipts and CapitalReceipts. The budget for receipts is compiled and consolidated

by trafic Accounts branch. Railway earnings are divided into

following heads:

1. Passenger Earnings

2. Goods Earnings

3. Other Coaching Goods 4. Sundry Earnings

Receipts are compiled based on the monthly balance sheets

of station Masters and goods supervisors. In the sundry

earnings part of the earnings are accounted for and relected

through Monthly Account Current and submitted to trafic

accounts branch by Accounting Units. These earnings relate

to sale of grass, licence fee, way leave charges etc.

1.2) BUDGETING EXERCISE

The steps involved in presentation of Railway Budget are as

followed:

82



83

Budget

(i) Preparation of budget

(ii) Voting of budget

(iii) Execution of budget.

(iv) Review of budget as executed.

Voting and review of budget are parliamentary functions

whereas preparation and executions are primarily the

functions of executives at divisional and higher levels.

1.3) THE PREPARATION OF BUDGET:

The Revised Estimates of the current year and BudgetEstimates for the ensuing year are prepared simultaneously

and the preparation takes place at grass root level i.e. at

divisional level. The entire responsibility for framing the

estimates depends upon the spending/earning units. Though

the actual work of compilation and scrutiny rests with the

FA&CAO. After proper scrutiny the budget estimates are

submitted to the Railway Board by the Zonal Railways. Theestimates so submitted are subject to the critical examination

by the Railway Board and after taking all relevant factors

into account the Board frames estimates of income and

expenditure for the Railways as a whole. The revised estimate

for current year is ixed under each demand for each Railway

after taking into account the actual of previous year, the

expenditure during irst seven months of current year andany special feature that may be known.

So far as expenditure on Capital Work is concerned the

Railway Administration compiles a list of works in progress

and new works to be taken up in the following year. The

Board discusses proposals for New Works and a list of

approved work is prepared. The proposed expenditure in the

following year on such New Works and on Works in Progressforms the work Programme or the budget estimate of the

Rly for expenditure to be incurred on new or ongoing works.

Separate provisions are made for different types of Capital

works, which is in the form of funds like Capital Fund, DRF,



84


DF, OLWR, Capital fund. The level of funds may slightly vary

from budget to budget.

1.4) VOTING OF THE BUDGET: Before presentation of budget in the parliament the

recommendation of the President is obtained under Article

113(3) of the constitution. The budget papers are circulated

to the MPs and the budget is debated in the parliament.

1.5) BUDGET DOCUMENTS PRESENTED TO THE PARLIAMENT

Speech of Minister of Railways introducing the budget 1. Key to budget documents

2. Budget for the Railways revenue and expenditure

3. Explanatory memorandum on the Railway Budget.

4. Memorandum explaining proposals for adjustment of

fare and freight rates.

5. Demands for grants (Part-I & Part-II)

6. Works machinery and rolling stock Programme

(Part-I & Part-II)

7. Indian Railways year book

8. Indian Railways annual reports and accounts.

In accordance with the Article 114 of the constitution, after

the demands for grants have been voted by the Lok-Sabha,a bill is introduced to provide for the appropriation out of

the consolidated fund of India of all money required to meet

the grants made by the Lok-Sabha as also expenditure if any,

charged on the consolidated fund of India. The grant as voted

by the Parliament and appropriation for charged expenditure

as sanctioned by the President are distributed by the Railway

Board among the Zonal Railways and other spendingauthorities. The order by which allotments are made is called

budget orders. The capital budget is presented in the form of

Rolling Stock and Final works Programme.



85

Budget

1.6) THE STAGES TO REVIEW OF BUDGET

(i) August review – Mid term review – Sent to Board in

August

(ii) Revised estimates – Sent to Board in December

(iii) First modiication – Sent to Board on 1st of Feb

(iv) Final modiication sent to Board on 1st of March

0.7) CONTROL MECHANISM

I. Budgetary Reviews:

As a means of controlling the expenditure, a monthly review

comparing actual expenditure with the proportionate budget

allotment is made and an appreciation report bringing out

the special features in respect of each month’s account is

also submitted to the Railway Board. This monthly review is

done right up to the Divisional level and it helps in controlling

the expenditure effectively. This also helps in managing the

inances in a better manner by the respective departments

by postponement, modiications in the physical activities

being contemplated or appropriation of funds.

II. EXCHEQUER CONTROL

Exchequer control is a mechanism for concurrent regulation

of cash outgo vis-à-vis allotments. The books of Railway

expenditure falls into 2 categories viz cash and adjustments.

The former covers all transactions completed through

cash payments or issue of Cheque and broadly comprises

disbursements to staff and contractors, settlement of bills/

claims for supplies and services etc. Adjustments represent

inter or intra accounting unit booking transactions, which

entail no cash outgo.

The object of exchequer control is to establish a system for

correct estimation of cash outgo and to monitor way and

means allotted.



86


APPROXIMATE ACCOUNTS CURRENT:

This is an exercise to ascertain the cash out go for the purpose

of arranging Ways and Means. At this stage cash outgo as well

as adjustments for the coming month are ascertained andsubmitted to Railway Board through Zonal HQ.

It is thus an important tool of budgetary control. In the

exercise of exchequer control, the total allotments for the

year are divided between cash and adjustments. Board has

laid down broad guidelines for making a realistic estimate

of cash and adjustment portion of expenditure falling within

the sanctioned budget. Thereafter, the cash outgo is further

distributed amongst the 4 quarters of the year. Railway

Board issues quarterly cash allotments. The actual cash

disbursement during the quarter is reported while asking

for the cash allotment for the next quarter. The report is

scrutinized in the Board’s ofice to see the progress of cash

expenditure vis-à-vis the authorization for the quarter.

(A) Revenue Expenditures:

This is expenditure on day-to-day maintenance of the system.

Any expenditure that does not improve or appropriate the

value of the assets and the impact of expenditure does not

last beyond one-year falls in this category. Budget for Revenue

Expenditure is prepared and booked under Demands for

Grants, which are further, subdivided into subhead, minorand detailed heads. The classiication is based on function of

expenditure and objective of expenditure.

Demand

NO

Name of Demand Name of

abstract

1 Railway Board

2 Miscellaneous Expenditure (General)

3 General Supdt. & Services on Railways A

4 Repairs & Maintenance of Way & Works B

5 Repairs & Maintenance of Motive Power C



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Budget

6 Repairs & Maintenance of Carriages & Wagons D

7 Repairs & Maintenance of Plant & Equipment E

8 Operating Expenses-Rolling Stock & Equip-

ment

F

9 Operating Expenses-Trafic G

10 Operating Expenses- Fuel H

11 Staff Welfare & Amenities. I

12 Misc. Working Expenses J

13 PF, Pension & other Retirement Beneits. K, N

14 Appropriation to Funds L15 Dividend to General Revenue repayment of

loan taken from general revenues and amorti-

zation of over capitalization.

M

16 Asset acquisition – construction and replace-

ment

1.12) Primary Units (Objects) of Expenditure

1. Salaries and Wages

2. Dearness pay and Dearness Allowances

3. Productivity Linked Bonus

4. House Rent Allowance

5. Compensatory (City) Allowance.

6. Transport allowance

7. Air Travel Expense sanctioned in lieu of privilege

passes.

8. Ofice Expenses.

09. Wages of Casual labour.

10. Kilometer allowance.

11. Overtime allowance. 12. Night duty allowance

13. Other allowances.

14. Fees and honoraria.



88


15. Transfer allowance.

16. Traveling expenses.

17. Rental for P & T Telephone and call charges including

Trunk Calls.

18. Advertising Expenses.

19. Utilities-Water, Electricity, etc.

20. Rental for ofice equipment (other than Data

Processing)

21. Printing and Stationery including Publications.

22. Cost of materials from stock.

23. Cost of materials - Direct purchase.

24. Fuel for other than traction.

25. Contractual payments - (This primary unit may be

used for works and handling contracts and contracts

for Engineering supplies of materials etc. while all

other direct purchase of other stores will be booked

under Primary unit 28)

26. Transfer of debits/credits from other units- (This

primary unit may be used for classifying Transfer

debits/credits other than for Stores debits/credits

received from Stores Accounts in which case Primary

Unit 27 may be used)

27. Adjustment of ‘Wages’ on POH and other repairs from

WMS Account to Revenue Heads.

28. Adjustment of ‘materials’ on POH and other repairs

from WMS to Revenue Heads.

29. Excise duty paid/payable for purchase of materials.

30. Customs duty paid/payable for purchase of materials.

31. Sales Tax paid/payable for purchase of materials.

32. Air Travel (Domestic)

33. Air Travel (Foreign)

34. Cost of computer hardware/system, Software/



89

Budget

application software including expenditure on excise

/customs and sales tax; IT related consultancy

contracts, cost of up gradation i.e. one-time

expenditure not being of recurring nature.35. Cost of computer consumables (ribbons, cartridges etc.),

dscs, tapes, loppes, compter statoar etc., retal

of computers and AMC i.e. all expenditure of recurring

nature.

36. Other Expenses.

37. Customs duty paid/payable for purchase of materials.

38. Sales Tax paid/payable for purchase of materials.

39. Air Travel (Domestic)

40. Air Travel (Foreign)

50. Cost of computer hardware/system, Software/application

software including expenditure on excise /customs and sales

tax; IT related consultancy contracts, cost of upgradation i.e.

one-time expenditure not being of recurring nature.

51. Cost of computer consumables (ribbons, cartridges etc.),

dscs, tapes, loppes, compter statoar etc., retal

of computers and AMC i.e. all expenditure of recurring

nature.

99. Other Expenses.

1.13) CAPITAL EXPENDITURE

1.13. A) Works Machinery and Rolling Stock Budget –

The revised and budget estimates for expenditure on

construction, acquisition, and replacement of new assets

(briely known as the Works Budget), are prepared in the

form of the Works, Machinery and Rolling Stock Programme.

Detailed instructions for the preparation and submissionof the Rolling Stock Programme and the Machinery and

Plant Programme are contained in the Indian Railway Code

for the Mechanical Department (Workshops) The Works

Programme is required to be prepared in accordance with



90


the instructions embodied in the Indian Railway Code for

the Engineering Department. There is one single Demand

for Grant for Works Budget viz. Demand No, 16 for capital

budget i.e. Construction and Replacement. Whether theexpenditure is met out of loan obtained from the general

exchequer or internal resources of Railways viz., ‘Revenue’,

the, ‘Depreciation Fund’, the ‘Development Fund’ and ‘Accident

Compensation, Safety and Passenger Amenities Fund’; Works

Demand provides for booking of expenditure by various Plan

heads . For the purpose of link with the accounts of Central

Government, the Plan heads form a Minor Heads of RailwayWorks Expenditure, under the Major Heads 546 and 547.

Minor heads of classiication also refer to Plan head code.

The list of Plan Heads is as follows:-

Code number Description of Plan Head

11. New Lines (construction)

12. Purchase of new Lines.

13. Restoration of dismantled lines.

14. Gauge conversion.

15. Doubling.

16. Trafic facilities-Yard remodeling and others

21. Rolling Stock.

29. Road safety (L/Xing) 30. Road safety (ROB/RUB)

31. Track renewals.

32. Bridge work.

33. Signaling and Tele-communication works.

34. Taking over of line wires from P & T Department.

35. Electriication projects.

36. Other Electrical works.

41. Machinery and Plant.

42. Workshops including production Units.



91

Budget

51. Staff Quarters.

52. Amenities for staff.

53 (i) Passenger amenities.

(ii) Other Railway Users amenities.

61. Investment in Government Commercial undertakings-

Road services.

62 Investment in Government Commercial undertakings-

Public undertakings.

64 Other speciied works.

71 Stores suspense.

72 Manufacturing suspense.

73 Miscellaneous Advances.

81 Metropolitan Transport Projects

The source of inancing is indicated by the following

alphabets while booking of works expenditure under

the Revised Classiication:

P- Capital Q- DRF S- DF R-

OLWR

T- ACF

Expenditure under (OLWR) is inanced from railway revenues,

i.e., it is treated as a part of the miscellaneous revenue

expenditure of capital nature. Expenditure budgeted under

‘’Capital” involves increase in the Capital-at-charge of the

Railways .Since dividend is to be paid to General Exchequer

of Govt for the capital portion of the Capital Structure ,

therefore, dividend is paid for increament in this portion

subject to the relief’s/ exemptions granted by the Convention

Committee. ‘Works Expenditure’ of the Railways is thus

inanced from Revenue, Railway Funds (DRF, DF and ACSPF)a Capital provided by the General Revenues. In the event of

the Railway’s revenue surplus not being adequate to fully

meet the requirements of Development Fund expenditure,

the budgetary support from the General Revenues would also



92


include temporary loans to inance expenditure from the

Development Fund.

Primary Units (objects) of expenditure for Works

(1) Pay and allowances of Departmental

Establishment

01

(2) Payment to Casual labour 02

(3) Payment to Contractors and others for

Engineering works or supply and erection

contracts etc.

03

(4) Direct supply of material 04(5) Stores supplied from stock 05

(6) Freight on stores 06

(7) Credits for released material 07

(8) Others 08

(9) Transfer of debits/credits affecting capital

works expenditure/suspense accounts

09

(10) Productivity Linked Bonus 10

(11) Excise duty paid/payable for purchase of

materials

11

(12) Custom Duty 12

(13) Sales Tax 13

(14) Interim Relief. 14(15) Travelling Expenses. 15

(16) Air Travel (Domestic) 16

(17) Air travel (Foreign 17

(50) Cost of computer hardware/system, Software/

application software including expenditure

on excise /customs and sales tax; IT related

consultancy contracts, cost of upgradation i.e.

one-time expenditure not being of recurring

nature.

50



93

Budget

(51) Cost of computer consumables (ribbons,

cartridges etc.), discs, tapes, loppies, computer

stationary etc., rental of computers and AMC i.e.

all expenditure of recurring nature.

51

After receiving allotment from Rly board HQ distribute to unit. The

distribution of division-wise, demand-wise, subhead-wise budgetary

allotment received from FA& CAO is to be informed to OS Budget.

-365 F1

1.15) Proportionate Budget allotment

The sanctioned allotment for the year is distributed over

twelve months. This is called Proportionate allotment or

Budget Proportionate. While framing this, the following

factors are taken into consideration.

(i) Throw forward liability from the previous year

(ii) Expenditure which is not likely to be incurred evenlyduring the year

(iii) Expenditure practically ixed and evenly distributed

throughout the year.

(iv) Keeping some reserve for meeting fresh or

unanticipated expenditure

(v) Trend of expenditure booked during previous years.

The demand-wise, department-wise, subhead-wise,

PU-wise proportionate budget allotment is fed into

the computer for monitoring the expenditure. This

MIS to put up to SR DFM and DRM every month .

3.0) Monthly Financial Review

Being a Budget Control Oficer Budgetary and expenditurecontrol is exercised by SR DFM by reviewing the inancial

position every month. Here, department-wise, demand-

wise, PU- wise expenditure to end of the previous month is

compared with Budget grant and Budget proportion and major



94


variations between BP and expenditure are analyzed and put

up to DRM. Budget supervisor is also being intimated so that

necessary action can be taken. A comparative statement of

controllable heads of account like OT, TA and NDA is preparedby comparing actual of current year, actual of previous year

and budget proportion. As regards works expenditure, plan-

head wise expenditure is compared with budget grant.

4.0) August Review Estimated (ARE)

4.1) Review of Expenditure –

This is mid-term exercise to review the trend of expenditure

as compared to budget grant. Railway Administrations

should review their expenditure in August to see whether any

modiications are necessary in the allotments placed at their

disposal. The review in respect of each grant is submitted, to

the Railway Board in form No F-383 so as to reach them not

later than 1st September each year. –383 F1

This is prepared by executives comparing actual expenditure

of previous irst four months and full year and irst three

months (April to June) plus approximate of 4th month (July)

and anticipated booking in the remaining months with BG.

This is submitted to Accounts for vetting. Vetting is done

by verifying the correctness of igures and comparing the

anticipated expenditure with previous year’s expenditureand trend of expenditure in the current inancial year. If

any variations are there, it is seen that justiied reasons are

given therein. The following checks are carried out in August

Review:

(i) The reason for variation in the Primary Units & minor

heads is clear & cogent along with details leading to

such variations. (ii) ARE for demand no 16 is submitted in the prescribed

format.

(iii) The forecast of works of expenditure on works should

be made with due regards to progress of expenditure



95

Budget

& commitments that are likely to materialize.

Wherever the provision appear to be excess of the

actual requirement, should be surrendered at the

ARE stage itself. (iv) ARE for earning will be inalized under liaison with

CCM/HQ, he may coordinate in this regard and the

estimate of trafic plans for passengers & goods

may be generated in CRIS software. The estimate of

actual originating & apportioned earnings for the

proceeding year vis-à-vis monthly details of current

year may be furnished. The reviews of civil grant vis-à-vis the budget allocation need to be carried out &

estimated requirements under “F” Loans & Advances’

only may be furnished.

(v) The August Review, Revised and Budget Estimates

etc. in respect of earnings, the Railway through the

windows based program namely ‘Budget Compilation

System’ developed by CRIS furnishes Revenue andworks expenditure.

(vi) The August Review Estimates of Grant No 1 and 2

may be prepared indicating details of approximate

expenditure to end the concerned month incurred

under each primary unit.

(vi) We should make every effort to formulate theirestimates for demands in such a manner that various

other post-budgetary increases such as hike in the

price of HSD oil and unforeseen expenditure on

account of natural calamities etc. are met within the

existing allotments.

(vii) To keep uniformity among the data of all Indian

railways, credits should be booked /projectedonly under the primary unit “other expenses”. This

instruction should be strictly adhered to in all

budgetary stages.



96


4.2) Target date for submission of August Review:-

The target date for submission of August Review, is ixed as

1st week of August every year. However it is to be ensured

that the August Review should be submitted as per the dateixed by headquarter.

5.0) Revised Estimate –Budget Estimate (RE-BE)

This is 2nd stage of review done after the closure of Sep A/C. In

this stage Revised Estimates for coming the year and Budget

Estimates for next year are ixed for each demand. The

estimates of expenditure in respect of each demand should beprepared in duplicate, the, igures being given in thousands

of rupees. In preparing these estimates, it should be ensured

that the igures of actual expenditure for the preceding year

shown in the estimate agree with those reported to the

Railway Board. The igures of actual expenditure for the

current year should represent the latest data.

5.1) Explanation of Variations –

A brief narrative explanation should be given of the

causes (with amounts involved in each case) of substantial

differences between the igures adopted for the revised

estimate of the current year and (I) the actual of the previous

year, and (ii) budget allotment for the current year. Similar

explanation should also be given for differences between theigures of the budget estimate of the ensuing year and the

revised estimate of the current year. Large variations, which

compensate each other, should also be indicated.

The revised estimate for the current year and the budget-

estimate for the next year should be ixed after taking into

account the expenditure of the previous year and comparing

the expenditure during the irst seven months of the yearwith the corresponding period of the previous year. A full

explanation of special features and any exceptional and

abnormal adjustments (with amounts involved) included in

each period of the previous and current year as also in the next



97

Budget

year, should be given in the explanatory note accompanying

the estimates. The inancial effect of variations on account

of speciic reasons should be clearly brought out under each

Demand. When the expenditure anticipated in the last ivemonths of the year is disproportionate as compared with (I)

the irst seven months of the year or (ii) the corresponding

period of the previous year, reasons for the disproportionate

expenditure should be given in the revised estimate. Special

and non-recurring items of expenditure in a year should

show a corresponding saving in the following year. Likewise,

when transfers are made from one demand to another due

to changes in classiication, the saving shown under one

demand should agree with the excess shown under the other

demand. The estimates of the cost of establishment should

be based on past experience of their actual cost, with due

allowance for any changes either in the number or rates of

pay of each individual establishment in the year in which,

or for which the estimate is being made. In the explanatory

note accompanying the estimate, information should begiven as to what part of the proposed expenditure represents

expenditure on the permanent staff already sanctioned,

how much of the proposed increase in the next year is due to

ordinary increments, how much is new expenditure and how

much for temporary establishment. Reasons should be given

for additional staff when provision is made in the estimates

for such increase in expenditure. ‘Staff Statements’ undereach Demand should accompany the estimates of ordinary

working expenses. Explanations for substantial variations in

the numbers should be furnished as between current year’s

budget and, revised estimates and budget estimates for the

following year. This is prepared by executives comparing

the actual of irst six months (April to September) plus

approximate of 7th month (October) and anticipated booking

in the remaining months with BG and corresponding

expenditure of previous year. Special features, if any noticed,

should also be considered at this stage. Vetting is done as

mentioned above.

- 324 to 331 F1



98


5.2) SCRUTINY OF REVISED ESTIMATE & BUDGET ESTIMATE

At the time of checking of Revised & budget estimate we

check the followings-

(i) A detailed analysis on the current trend of the

expenditure and forth coming future expenditure

may be carried out before projecting RE so as to

avoid excess/ saving. Credits & recoveries should be

estimated with utmost care.

(ii) Detail reasons for variation in respect of each minor

head, taking all primary units together and by primary

units, for the demand as a whole may be furnished.

(iii) It may be ensured that REs are accompanied with

required annexure.

(iv) Debit/ Credit projections under various suspense

heads of Demand no. 12/K may also be furnished with

due care.

5.3) Target date xed for sbmsso of RE BE:-

The target date for submission of RE, BE, is ixed as 1st week of

November every year. However it is to be ensured that the RE

BE should be submitted as per the date ixed by headquarter.

6.0) Fal Modcato

Final Modiication Statement submitted to HQ should befurnished, for each grant separately, and it should reach them

not later than 21st February inally to Railway Board, with

statements showing additional allotments required (both

voted and charged) or surrenders to be made, during the

current inancial year under each head of appropriation, as

prescribed in the budget orders, and requiring the sanction

of the President. The variations between the inal modiiedallotments required and the revised estimates as ixed

by the Board should in all cases be supported by adequate

explanations of the reasons for the demand or surrender.

-385 F1



99

Budget

This is done after the closure of December accounts when

the actual expenditure of 9 months and approximate for

10th month are available. Through this additional funds are

asked / surrendered as per the requirement. Vetting is doneas mentioned above.

6.1) Target date xed for sbmsso of Fal Modcato:-

The target date for submission of Final Modiication is ixed

as 1st week of January every year. However it is to be ensured

that the August Review should be submitted as per the date

ixed by headquarter.

7.0) Appropriation Accounts

Apart from its signiicance as an instrument of Parliamentary

inancial control, the Railway Budget is an important

management tool. Broadly the inancial forecast in the

Budget is related to the performance targets set for Railway

Administrations, and it is the responsibility of the RailwayManagements to ensure the achievement of these associated

targets.

-304 F1

Parliamentary Financial Control is secured not only by the

fact that all ‘voted’ expenditure must receive Parliament’s

prior approval, but also by the system of reporting back

to it, through the Public Accounts Committee, the actualexpenditure incurred against the Grants voted by Parliament

and Appropriations sanctioned by the President.

-401 F1

The statements, which are prepared by Railways and

presented to C & AG’s Audit Wing for presentation to the

Public Accounts Committee, comparing the amount of actualexpenditure with the amount of Grants voted by Parliament

and, Appropriations sanctioned by the President, are called

the “Appropriation Accounts”. The aim is to ensure that the

expenditure is done for the purpose it was actually sanctioned

by the Parliament. -402 F1



100


8.0) The Compilation procedure of Appropriate Accounts:

The Appropriation Account for Revenue Demand 3 to 13 is

prepared Department wise, Demand wise, Subhead wise, PU

wise by Executive department and sent to accounts ofice. Thecompilation is done demand wise, subhead wise and suitable

explanation for variations are furnished in consultation with

Executive department. The compiled statement is sent to

F.A. &. C.A.O’s ofice. For more detail please see chapter IV of

Finance code vol. 1.



Chapter 5

INSPECTION SECTION

1. NECESSITY FOR INSPECTIONS:

i) Though in certain cases original records are submitted,

a large number of accounts and supporting documents

submitted for internal check are not original records, as such

the internal check conducted in the Accounts Ofice is largely

dependent for its eficiency on the degree of care exercised

by departmental authorities over the accuracy of the original

records.

ii) It is, therefore, necessary to review the original records as

submitted to Accounts and also to test the degree of care

exercised by the executive oficers over the accuracy of such

records and to see that they are maintained properly in the

prescribed forms.

iii) Opportunity is also taken at this time to test check such

Accounts, Vouchers, etc. which are not coming under the

purview of internal check or cannot be checked adequately

except at a local inspection.

iv) Inspection of executive ofices at Head Quarters and Divisions

shall ensure the accuracy and authenticity of the transactions

rendered by the executives.2. RESPONSIBILITIES OF ACCOUNT’S OFFICERS: The

Divisional Accounts Ofices are responsible for:-

i) Inspection of all ofices under their Accounts control.

ii) Inspection of Railway Schools within their

jurisdiction.

iii) Inspection of all catering units falling within theirjurisdiction.

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

v) Check of OT/NDA claims at Stations and other ofices.

Accounts team is mandated to ask for any record from

101



102


any ofice under their accounting control. They have

also the mandate to seize the record with prescribed

procedure it embezzlement or a serious lapse is

suspected in the accounts.

3. PERIODICITY OF INSPECTION

i) Schedule of Inspection: It is prepared on the basis of

sensitivity analysis. The sensitive areas are more frequently

inspected as compared to the less sensitive ones. Sensitivity

of an ofice is decided based on the level of inancial

transactions taken up. The money value item dealt with thepossibility of pilferage and leakages and so on also decide

the frequency of inspection. Special emphasis should be

given to post check items like Imprest. Divisional ofices are

inspected once in every two years, but the initial accounts of

Engineering expenditure, Open line shall be inspected once a

year. The irst inspection of a construction division shall as

far as possible be made within three months of its formation.The Headquarters Administrative Ofices will be inspected

once in two years. - [ 1706 A1]

ii) Wle spectg Dvsoal ofce, oe sbofce

the case of engineering expenditure and at least two

sbordate ofces ot carge of a Gazetted ofcer

shall also be inspected simultaneously.iii) As far as possible all the subdivisional ofices in a division

shall be inspected within the course of two years.

iv) The ofices, where there are not many transactions by way

of miscellaneous cash, issue of passes, PTOs etc. may be

inspected once in 3 years to have.

a) A general review of the procedure relating to initialaccounts of receipts and expenditure of cash and

stores with a view to making helpful suggestions

towards elimination of useless returns, redundancy

of any kind and wasteful methods.



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Inspection Section

b) To assist the departmental oficers in the matters

affecting accounts, budget or the inancial regularity

of transactions.

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

token of their check.

4. DRAWING UP OF ANNUAL INSPECTION PROGRAMME FOR

ENSURING YEAR:

The Annual Inspection Programme has to be drawn up

in terms of Para 1712 A1 for obtaining FA&CAO’s approvalbefore the starting of the inancial year. This Annual

Inspection Programme has to be drawn up in consultation

with associated Audit ofice with regard to provisions of Para

1706 and 1709 A1. The following details should be mentioned

on the programme.

1. Name of Executive ofices/Sub-Ordinate ofices.

2. Periodicity of Inspection.

3. Date when the unit was last inspected by Audit/Accounts

ofice,

4. When inspections is proposed to be done during the inancial

year.

5. No. of Days and man days programmed for each inspection

with the total No. of days and man days required during theentire year for inspection purpose.

6. All units due for inspections may be segregated between

the categories as “ Major unit/Minor unit.” And a separate

inspection scheduled for each category may be submitted.

7. Detailed analysis may be done to furnish the following

information:- (i) Joining time required for the inspection during the

inancial year.

(ii) The remaining No. of days available for inspection.

(iii) No. of holidays/Sundays and CL/RH etc.



104


8. The copy of holiday’s list for the year of Bhopal division is also

to be furnished with the programme.

Current position of compliance of approved annual inspection

programme for the current year is also to be furnished interms of nos. of inspection due/ carried out and inspection

reports (Part I & II) issued. In case of arrears in this

connection, reasons for the same and steps taken to clear the

arrears is also to be furnished.

A certiicate starting that all the units, the inspection of

which is due during the ensuring year are included in the

programme without any omissions is also to be furnished.

Ref:- FA&CAO/I.Au/JBP letter no. HQ/ACS/GA/INSP/001/2009-

10 Dated 04-03-2009

NOTE:- The complete list of various ofices on Bhopal division is

annexed as Annexure ‘A’.

Based on above guidelines and keeping in view the inspection

Schedule of Audit department inspection programmeof Accounts ofice has been inalized and shown as

Annexure –‘B’.

5. FURTHER DISPOSAL OF INSPECTION REPORTS.

Based on the indings observed during inspections, Reports

are prepared and submitted to ADFM for approval. After

getting the approval of ADFM, the inspection reports are

issued to the oficer unit in-charge of unit inspected. On

receipt, of the replies the remarks are veriied for their

genuineness and appropriateness and the matter is closed

if found acceptable. However, in case the remarks are found

inappropriate and unsatisfactory, the concerned unit in-

charge is written back for corrective actions. On receipt

of further reply, the report is closed with the approval of

Accounts Oficer. The Inspection report is issued within 20

working days time from the date of inspection.

During the course of inspection, efforts are made to review

old outstanding Inspection reports of Accounts or Audit

department, if any, and the concerned Executive is impressed



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Inspection Section

upon for submission of remarks /corrective action at the

earliest.

On receipt, the remarks are veriied & forwarded to Audit

if found suitable, otherwise written back to the concernedbranch oficer for submission of details of corrective actions

and subsequent appropriate remarks. In addition, reminders

at regular intervals are issued to concerned branch oficers for

submission of remarks in the matter of outstanding current

and old audit references. Tripartite meetings are arranged

to inalize Audit reports/Special letters. At the same time,

various periodical returns are submitted to the HQ with thevetting being done by Audit department, if necessary.

To verify all settlement cases to record recoveries outstanding

and detected during Inspection.

6. CHECK LISTS FOR INSPECTION:

Inspection of various Executive oficers is an important

aspect of work for Accounts Department; Emphasis is laid to

make it purposeful and effective to assist various Executive

authorities by pointing out important areas of deiciencies,

where improvement can be achieved. Keeping these

objectives in mind, a Checklist to carry out the inspection in

a way prescribed in the Railway manuals is prepared. The

checklist should cover all the important areas where the

probabilities of omission and commission are higher. Thisnormally covers the aspects, given below. However, the list

given is not exhaustive, and an item can be included based on

its importance in the relative context.

• The Receipt and issue are matching and conirms to

the real state of affairs.

•

The liabilities and Assets are matching. • The Book Balance and Journal Balance correspond to

each other.

• The allowance claims and privileges are entertained

within the prescribed limit.



106


• The work is executed as per authorization.

These checks are given below illustrative and not exhaustive.

7. LIST OF ITEMS COMMON TO ALL OFFICES NONPERSONNEL1) Imprest cash including Spl. Imprest Account.

2) Postal stamps account.

3) Franking Machine Account.

4) Misc. cash receipts and remittances.

5) Pay orders.

6) Money value books and machine numbered books.

7) Register of Agreements, and review of Tenders and

contracts.

8) Review of Agreements.

9) Stationery books and forms.

10) Consumable Stores Account.

11) Clothing Account.

12) Dead Stock and Tools and Plants.

13) R.M.C/Credit Notes issued for carriage of Rly.

Materials.

14) History Book of vehicles, typewriters etc.

15) Review of Inspection Notes of PHODs/ HODs.

16) Review of Outstanding Audit and Accounts Inspection

Reports.

17) Review of Bills Register.

18) Review of Telephone bills.

19) Review of Log Book.

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

21) Review of Stores ledger.

22) Review of Progress of expenditure.

23) Writeoff and sanctions.



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Inspection Section

24) Register of Library Books, Receipts, Accountal and

issues.

25) Review of Implementation of Rly. Bd’s orders.

POINTS REQUIRED TO BE SEEN ON EACH OF THE ABOVE QUOTED

ITEMS ARE GIVEN BELOW:

1) IMPREST CASH:

i) The cash balance on hand to be veriied by actual

count and tallied with the book balance, Certiicate to

this effect should be recorded in the Imprest register

under the initial of the inspecting oficial.

ii) Proper arrangements exist for the safe custody of the

cash.

iii) Prescribed Imprest register is maintained in the

prescribed form, and the amounts spent are recorded

correctly. (G.SIF/E.1411)

iv) Recoupment is made periodically.

v) The Imprest Account is balanced and closed daily.

vi) Amount spent from Imprest are correctly payable

and authorised by the Gazetted Oficer.

vii) The sanctioned amount is not in excess of requirement,

and a justiication exists. In case Recoupment is made

occasionally, reduction of Imprest is to be suggested. viii) Special Imprest sanctioned for a speciic purposes are

closed immediately duly surrendering the balance

amount after the special event is over.

ix) Amount spent from special Imprest are spent only for

the speciic purpose for which it was sanctioned.

x) Separate Imprest Account is maintained and not mixed

with general Imprest, if the Imprest is sanctioned for

special purpose.



108


2) POSTAL STAMPS ACCOUNT:

i) Service stamps on hand to be veriied by actual count

and tally the same with the balance as per Register of

Stamp Account.

ii) It should be seen that ordinary postal stamps are not

used and only service stamps are used.

iii) Recoupments of service stamps are properly

accounted in the postal stamps account.

iv) Full particulars are given in the postal account

register for the usage of service stamps.v) The postal stamp account is balanced daily/

periodically, and initial of the in charge/supervisor is

obtained in the Resister of Stamps Account.

vi) If the postal stamps are used for Registered articles

etc., necessary acknowledgements obtained from the

postal authorities are pasted in the Postal Stamps

Register.

vii) Test check of the entries in the register is made to

ensure that the stamps have been used for ofice use

only.

3) FRANKING MACHINE ACCOUNT:

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

ii) Opening and closing Nos. are entered in the stamps

register.

iii) Proper account for usage of stamps from the Franking

Machine is recorded in the stamps register.

iv) When stamps are recouped from Postal Department,

necessary entries are made in the register (opening

and closing numbers)

v) Rebate @ 3% for the usage of Franking Machine is

claimed from the Postal Department periodically, and

the amount realised is accounted for in the Railway’s

account.



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Inspection Section

4) MISCELLANEOUS CASH RECEIPT AND REMITTANCES:

i) The ofice is authorised to receive the cash, and

proper receipt is issued for all receipts of cash.

ii) The receipt books have been kept under lock and key

in the personnel custody of the oficial responsible.

iii) The amount received is remitted to the cash ofice

or to the nearest station without any avoidable delay

and the amount is remitted correctly.

iv) Proper Acknowledgment is obtained and pasted to

the counter foil. v) Proper account is maintained for the receipt and

deposit of cash.

vi) Necessary returns are submitted to the Accounts

Ofice monthly.

vii) Correct allocation is furnished on all the vouchers.

5) PAY ORDERS:

i) The Pay Orders issued by the ofice are checked to see

that the drawl of amount is justiied and sanction of

the competent authority is obtained.

ii) Pay order book is properly maintained and necessary

certiicate is recorded to the effect that all the folios

are checked and found correct. iii) All the pay orders are stamped with seal of the ofice.

iv) Pay order books are kept under lock and key.

v) Separate register is maintained for issue of pay

orders.

vi) After the amount is drawn, necessary vouchers are

sent to the Accounts Ofice in time. vii) Amount drawn through pay order is spent immediately

and only for the purpose for which it is drawn.



110


6) MONEY VALUE BOOKS AND MACHINE NUMBERED BOOKS:

i) Proper Accountal and receipt of the books is to be

checked with the memos issued by the Press/Forms

Depot.

ii) Proper arrangements exist for safe custody of the

books.

iii) The numbers of unused books agree with the entries

in the stock register.

iv) All issues are properly acknowledged.

v) Obsolete or excess to requirements are not stocked.

vi) Prompt action is taken in the event of loss/theft of

money value books/or folios, viz. Gazetted notiication,

report to the Police, etc. to avoid fraudulent usage of

the Money Value Books.

6) REGISTER OF AGREEMENTS:

i) A Register is maintained in the prescribed form. ii) All agreements entered into with the contractors are

entered in the register.

iii) Complete details viz. name of the work, Agt. No., and

date, letter of acceptance of the agreement, total

value of the Agt./contract, Date of commencement,

due dt. for completion, particulars of EMD/SD,

extension granted if any, special remarks if any etc.,are furnished.

iv) The register is periodically reviewed and initialed in

the inspection sheet.

7) TENDERS AND CONTRACT:

i) Tenders have been called for with the sanction of the

competent authority. ii) Accounts concurrence is obtained before calling for

Tenders (in the case of Single, Limited and Special.

Limited Tenders and all other cases where necessary)

iii) Tenders have been called for, only after preparation of



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Inspection Section

Estimate, sanction of Indents (For supply), drawings

and plans etc.,

iv) A register is maintained showing all particulars of

tenders received.

v) In case of sale of Tender Forms, proper account is

maintained for receipt, accountal and remittance of

cash.

vi) Tenders have been called for well in advance of the

date of commencement of work.

vii) All relevant rules and procedures have been followedfor calling, opening, and inalisation of tenders.

viii) Terms and conditions stipulated in the Agreement/

Contract are as per extant orders.

ix) TCP has been formed as per the provisions of S.O.P. /

Rly. Bd. Instructions.

x) There is no deviation from the standard conditions,

special conditions, if any, and have the prior approval

of the competent authority.

xi) The lowest tenders only have been accepted.

xii) Negotiations if conducted are as per latest instructions

on this subject i.e. only with the lowest Tenderer etc.,

9) REVIEW OF AGREEMENTS: i) Agreements Register should be checked to ensure

that all details are furnished,

ii) Some of the agreements should be checked with

reference to

a) Progress of the work,

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

c) Test check the measurements recorded and

bills claimed.

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

supply.



112


e) Proper action has been taken against the

Agency in case of delay.

f) Final Bills are prepared without delay

on completion of the work and inalMeasurements are taken. If there is undue

delay in preferring inal bills, the reasons for

the delay should be analysed.

g) All records connected with execution of the

work are maintained correctly.

h) The claims preferred are only to the extent

the works are executed/supplies made.

i) Variations to the execution of work or supply

of items are regularised with the sanctions of

the competent authority as per rules.

j) CR is drawn at the earliest, booking the

necessary expenditure towards material &

establishment.

10) STATIONERY BOOKS AND FORMS:

i) Necessary Registers are maintained properly for

receipts and issues.

ii) There are no abnormal issues.

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

maintained separately.

iv) Stationery purchased locally in case of urgent need

is done after obtaining proper sanction and as per

provisions of SOPWCR.

v) Computer Stationery is purchased only after

necessary sanction is obtained from the competent

authority, and the purchase is made as per theprovisions of SOPWCR (Part ‘C’) and extant rules on

this subject.



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Inspection Section

11) CONSUMABLE STORES ACCOUNT:

i) Register is maintained to record the receipt of

consumable stores.

ii) ‘Empties’ are checked with Issue Notes.

iii) Issues are as per the prescribed scales.

iv) A responsible oficial has attested balances

periodically.

12) CLOTHING ACCOUNT:

i) Requisitions are prepared in accordance with dressregulations.

ii) Proper records are maintained for all receipts and

issues and issues are made with clear signature/

acknowledgment.

iii) The receipts are checked with Issue Notes.

iv) Winter uniforms are issued as per the eligibility

criteria, and as per periodicity.

13) DEAD STOCK - TOOLS AND PLANT:

i) The Dead Stock Register is maintained in prescribed

form showing the purchase reference, P.O. No. etc.,

ii) The receipts, Issues and balances are correctly

posted. iii) Receipts should be checked with the irms Invoice,

Issue Notes etc.

iv) The Day Book of Receipts should be checked to see

that all Tools and Plants received have been accounted

for in the Tools and Plant Register.

v) Proper arrangements exist for accountal and safe

custody of the Dead Stock items kept in stock.

vi) All items available/received are properly and

correctly taken in the Dead Stock Account.

vii) Proper nomenclature, price list No, measurements

etc. are indicated against each item.



114


viii) Separate Folios are kept distinctly for items like, PCs,

VCR, TVs, Cameras, and Audio Visual equipments,

Fridge etc.

ix) Departmental Stock veriication has been doneperiodically and certiicate recorded against each

item.

x) Un-serviceable Tools and Plant are condemned

under proper authority and sent to stores Depot.

Expeditiously.

xi) Suitable reference furnished in the Dead Stock

Register for the Articles sent to scrap Depot, Transfer

to other units etc.

14) RAILWAY MATERIAL CONSIGNMENT NOTE (RMC NOTES)

AND CREDIT NOTES:

i) RMC Notes are issued only for the transport of Railway

Materials and the materials are for a bonaide Rly.

Purpose.

ii) Credit Notes are issued only when freight charges

are required to be borne by the Railway as per the

purchase order.

iii) Where credit notes are issued towards wharf

age or demurrage charges, it should be seen the

circumstances under which the charges incurred and

sanction of the competent authority is obtained for

issue of credit notes.

iv) If the charges are incurred due to delay in unloading,

want of staff, negligence of staff etc., the matter should

be reported to the concerned responsible oficial for

action against the staff.

15) HISTORY BOOKS OF VEHICLES, COMPUTERS/ TYPEWRITERS ETC :

i) Complete History of the Vehicle, viz. irm name, cost

of the vehicle/item, date of purchase, models etc. are

furnished in the Register.



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Inspection Section

ii) A detail of spare parts supplied, free guarantee period

etc. is indicated.

iii) Expenditure incurred for repairs, overhauls and

spare parts are posted correctly in the register andthe monetary limit prescribed for various factors are

not increased.

iv) In the case of new machines, free servicing if any

agreed to by the suppliers is availed of.

v) Released unserviceable spare parts after repair are

accounted and sent to the scrap depot under DS8.

16) REVIEW OF INSPECTION NOTES OF GM/PHOD/RLY. BD.

OFFICIALS:

i) Necessary register is maintained to watch the

inalisation of the observations made in the Inspection

Notes.

ii) Observation/Objections pointed out have beenproperly attended to.

iii) All the Inspection Notes have been pursued properly.

17) REVIEW OF OUTSTANDING AUDIT AND ACCOUNTS

INSPECTION REPORTS:

i) Outstanding Audit and Accounts inspection

Reports are properly attended to and the mistakes/irregularities have been rectiied.

ii) In the case of Pt. II Accounts Reports, the inality of

the action rests with the Executive Units where the

inspection was carried out. Action taken on the Part.

II reports should be reviewed during inspection.

iii) In the case of Stock Veriication reports and TIAs

reports, it is to be seen and reported that any DAR

case is pending against any employee or against the

unit due to Stock Veriication Reports or TIAs reports.

iv) It is to be enquired and reported that, is there any



116


vigilance enquiries dealing with inancial matters are

pending.

18) REVIEW OF BILLS REGISTER: i) A register to record the bills received in the ofice is

maintained and postings made correctly.

ii) Postings are made as and when they are received.

iii) Bills have been passed expeditiously and the

outstanding on hand is not heavy.

iv) Paid bills for the month selected should be traced in

the bills register, and checked.

v) The register is put up to the controlling oficer

periodically for review.

19) REVIEW OF TELEHPONE BILLS:

i) A separate Register is maintained to indicate the

receipt of Telephone bills with separate folios forofice and residential phones.

ii) All the Bills passed are properly entered, there is no

unusual/abnormal charges passed for payment. In

such case, the reasons for such payment should be

reviewed.

iii) In the case of residential DOT phones, the excess

amount than permissible has been recovered.

iv) Charges for Private Calls (Trunk Calls) etc. have been

recovered from the oficer concerned.

20) REVIEW OF LOG BOOK:

i) A general review of the Log Book pertaining to all

department vehicles with reference to the movement

of the 4 wheelers and 2 wheelers (RPF) and entries

made therein.

ii) Whether, the journeys performed are systematically

and correctly recorded with time, date, and kms.



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Inspection Section

Travelled, and signature of the oficer travelled.

iii) In case of private trip, it has to be checked whether

necessary charges have been billed and collected.

iv) Consumption of petrol to commensurate with the

kms. Recorded in the Log Book.

v) Petrol and other consumable oil drawn are recorded

in the LOG Book systematically.

21) REVIEW OF MONTHLY PROGRESS REPORT MPR/PCDO:

i) It has to be seen whether, the activities/ progress

indicated in the report are correct.

ii) Arrears if any relected in the report are factually

correct.

iii) Reasons for not achieving the target are factual and

correct.

iv) In case of MPR on execution of works, test check of

some of the items, indicated in the report should be

reviewed with the connected records.

22) REVIEW OF STORES LEDGER:

i) Separate ledgers are maintained for Cl. I, Cl. II

consumable stores, empties etc.,

ii) Postings are up to date and test checked with

connected records like DMTR etc. to ensure thecorrectness of the postings.

iii) Proper records are maintained for receipt and issues.

iv) Balances are arrived correctly.

v) Stocks are not held unnecessarily.

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

disposal.

23) REVIEW OF PROGRESS OF EXPENDITURE:

i) Proper records are maintained for the incurrence of

expenditure.



118


ii) Expenditure incurred is sanctioned and same is as

per the provisions made in the Budget.

iii) Debit/Credit relating to the year is booked in the

same year’s account.

iv) Adequate action is taken to obtain all Dr./Cr. and to

account for in the same year.

v) All adjustments, AMs, Transfers are accounted

without delay.

vi) All expenditure are properly allocated and brought

into the Account.

1) WRITEOFF/SANCTIONS:

i) Proper records are maintained for all sanctions and

writeoff.

ii) Writeoff sanctions have been obtained as per the

provisions of SOPWCR, Codal provisions etc.

iii) Finance concurrence has been obtained, wherever

necessary.

iv) Staff responsibility has been ixed, for the writeoff

proposals involving loss for which Rly. Employees are

responsible.

v) Preventive measures are taken to avoid recurrence

of loss/theft etc., for which writeoff proposal isobtained.

25) LIBRARY BOOKS:

i) A register is maintained for receipt and issues.

ii) Proper accountal of the books is checked with

reference to receipt vouchers.

iii) Books issued to the oficials are returned within theprescribed time.

iv) Books purchased for the library are as per the

requirement, and guide lines issued by Railway

Board.



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Inspection Section

v) Books, which are not required for day to day

functioning, are not purchased.

vi) Books purchased for library are as per the monetary

limits prescribed and had the sanction.

vii) In case of books lost/not returned, proper action is

taken to recover the cost etc.

1) REVIEW OF IMPLEMENTATION OF RAILWAY BOARD

ORDERS, INSTRUCTIONS ETC:

During inspections, the inspecting oficials should test

check and see whether the important Railway Board Orders,

circulars etc. are properly and correctly implemented, the

instructions if any have been correctly understood and there

is no deviation.

8. LIST OF PERSONNNEL ITEMS COMMON TO ALL OFFICES

AND POINTS REQUIRED TO BE SEEN ON EACH:

1) ATTENDANCE REGISTER:

i) Prescribed Register is maintained, with names and

designations recorded correctly.

ii) Staff have signed in the attendance Register at the

prescribed time and counter signed by the Controlling

Oficer.

iii) Staff attending late has signed only in the lateattendance and not in the regular attendance Register.

iv) All the absenteeism’s are properly regularised.

v) Late attendance is properly reviewed and suitable

action taken for condonation/debiting casual leave.

vi) No staff remains unauthorised absence for long

period and if any such cases, proper action is initiatedagainst the employee.

vii) Attendance Register is test checked with leave

account, C.L. card etc. to verify the correctness of

postings of leave/leave availed.



120


viii) Test checked with salary bills to ensure that wages

are drawn only for the duty period, and absence

during assumed attendance are regularised properly.

2) SCALE CHECK:

i) Proper Register/Record is maintained to indicate the

sanctioned posts, category wise.

ii) Checked with Attendance, Pay Bills etc. to see that the

posts operated are as per the sanction strength

iii) Book of sanction reference is indicated against each

Department against the posts sanctioned.

iv) No posts are operated in excess to the sanctioned

strength or without sanction

v) In case of excess operation, action has been taken to

regularise the posts.

3) LIMITED CURRENCY REGISTER:

i) Proper Register is maintained and complete details

viz. category, period of sanction etc. is recorded.

ii) The date/dates from which the posts are being

operated to be indicated clearly.

iii) No posts are operated beyond the period of currency

unless it is extended by the competent authority.

4) SERVICE REGISTERS:

i) Service Registers have been opened for all the

employees without delay and necessary Medical

Certiicate attached.

ii) All required details have been illed correctly.

iii) Necessary Thumb impressions have been obtainedand certiied by FPE/Responsible oficial.

iv) Service records are kept in safe custody.

v) The Date of Birth recorded in the S.R. agrees with

Medical Certiicate, School Certiicate etc.



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Inspection Section

vi) All necessary entries viz., increment, transfer,

promotion, ixation of pay, option forms for PF, CGIS,

sanction reference of HBA, Scooter Advance etc. are

recorded correctly and attested by Gazetted Oficial. vii) Qualifying service is recorded every year and period

not qualiied for pensionable service is recorded

correctly.

viii) In case of employees, for whom DAR action have been

initiated, suitable entries in the S.R. duly indicating

the punishment penalty, suspension etc. entered

clearly and duly quoting the orders of the competent

authority.

ix) That the Service Records are periodically reviewed,

by the controlling oficials.

x) In respect of SC, ST and BC candidates’ authenticated

documentary proof should be available in the SR/

Personal File of the employees concerned.

5) CASUAL LEAVE AND SPECIAL CASUAL LEAVE :

i) C.L. cards are maintained properly and C.L./R.H. are

sanctioned by the authorized oficial.

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

attendance Register.

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

iv) Separate Register is maintained for the purpose

of availing special Casual Leave duly indicating

individual employee name wise.

v) Proper sanction exists for availing special casual

leave. vi) For Grant of Special Casual leave on Sports Account,

the prescribed limit, for representing Zonal, National,

International events are correctly followed and

necessary sanction exist for availing the spl. C.L.



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6) COMPENSATORY LEAVE ACCOUNT:

i) A Register is maintained to watch that the

compensatory leave is sanctioned for having worked

on holiday and the staff has been booked by the ofice.

ii) The compensatory leave is availed within a reasonable

period.

iii) Supervisory staffs are not sanctioned compensatory

rest.

iv) In the case of staff governed by ‘Factories Act’ and

the HOER the rest given is in accordance with theprovisions of the said statutes.

7) LEAVE ACCOUNT:

i) Leave account is maintained correctly for all the staff

on Rolls, and governed by the leave rules the employee

is governed.

ii) Advance crediting of LAP/LHAP are made correctlytaking into account the Dt. of joining, period of leave

without pay etc.

iii) Every leave posting in leave account (Debit) is

supported by leave application, and sanctioned by the

competent authority.

iv) In the case of commuted leave employee’s speciic

request is forthcoming and the period of absence is

covered by Medical Certiicate.

v) Proportionate reduction in the LAP @ rate of 1/10

for the period of LWP (if any) is done before affording

advance credit every half year.

vi) In the case of ‘LND’, extraordinary leave etc, the leave

period is covered as per the extant rules. vii) In the case of ‘LHAP’ Leave salary is drawn correctly.

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

wages are drawn.



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Inspection Section

ix) No leave is sanctioned/availed without suficient

leave balance.

x) Postings of leave account are test checked with

reference to Muster/Attendance register etc. andLeave balance is brought forward correctly on every

page of the leave account without any over or under

casting of leave.

xi) Leave accounts are properly attested by the

responsible oficial periodically.

xii) Paternity leave is availed by the male employee within

the prescribed time.

xiii) Maternity leave is availed for the irst two living

children and necessary entries about availing the

leave mentioned in the leave record.

8) EXTRACT OF MUSTER /ABSENTEE LIST:

i) Extract of muster sent to the personnel departmentare test checked with attendance register/muster roll

and to ensure that the extractions are correctly done.

ii) Leave particulars shown in the Absentee list agree

with the Attendance Register.

9) TRAVELING ALLOWANCE AND CONVEYANCE

ALLOWANCE: i) The T.A. Bills are correctly prepared, signed by the

controlling oficials.

ii) The movement shown in the Journal agrees with

Attendance/Muster Rolls.

iii) The amount of T.A. claimed are as per the eligibility

criteria based on their Pay and Class of City.

iv) The movement shown in the Journal are test checked

with Train Time Table to ensure that the claims are

correct.

v) Conveyance allowance claimed by the employee is



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admissible as per rules and rate per km. claimed are

as per prescribed rates.

10)NATIONAL HOLIDAY ALLOWANCE:

i) The allowance is claimed only for those nongazetted

oficial, who are essentially required to work on

National Holidays and the booking of staff on National

Holidays had the sanction of the competent authority

i.e. DRM/ADRM etc.

ii) The staff in whose favour the allowance is drawn has

actually worked on that day as per the attendanceregister.

iii) The rates of allowance claimed are in accordance

with the rates furnished by the Railway Board from

time to time.

11) OVER TIME ALLOWANCE:

i) Necessary Registers are maintained to record the

overtime worked and entries attested by the Gazetted

Oficial.

ii) Necessity for working overtime should be closely

scrutinized.

iii) The rate of allowance is correct.

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

v) The entries in the Register and O.T. slips have not

been altered without proper attestation.

vi) The total O.T. allowance claimed agrees with the O.T.

Register.

vii) Classiication of staff is done, as per HOER and thatthe calculation of O.T. is correct.

12) RENT ROLLS:

i) Rent Rolls are prepared correctly including all the

employee’s who are in Rly. Quarters.



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Inspection Section

ii) Rent, water, conservancy charges shown in the

statement are correctly recoverable from the staff.

iii) Electrical energy charges are recovered correctly

from all the staff in occupation of Rly. Quarters.

13) BUILDING REGISTER:

i) Necessary Building Registers are required to be

maintained by the Engg. Subordinates and a copy

of the same is available in the Personnel Branch for

forcing correct recoveries.

ii) Complete details viz., Plinth area, type of the building,

electrical installations etc. are indicated both for

service and residential buildings.

iii) The Register is updated every time when buildings

are constructed/dismantled.

iv) The Register is periodically reviewed to ensure that

all the Buildings in that particular jurisdiction arebrought into the Register.

14) LOANS AND ADVANCES (RECOVERY REGISTER):

i) Details of various advances sanctioned to the

employees are recorded correctly and the recoveries

made are posted correctly individual employee wise.

ii) Conditions stipulated for grant of various advancesare satisied.

iii) Balances of advances are struck correctly every

month and it is ensured that the advances are

recovered within the permissible installments.

iv) In the case of interest bearing advances, the recovery

of interest is certiied well in advance and recovery

towards interest commenced immediately on

completion of principal amount.

v) In the case of staff transferred from other units, the

recovery of loan amount are correctly brought into

the Register and checked with the LPC. Similarly



126


in the case of transfer of employee’s to other units,

the LPC relect the correct amount of loan due for

recovery.

vi) The Register is reviewed by the responsible oficialperiodically.

15) FESTIVAL ADVANCE:

i) Festival Advance is sanctioned to the eligible

employees based on their basic pay.

ii) Recovery Register is maintained allotting separate

folios for each festival.

iii) Recoveries are commenced in time and completed

within 10 instalments.

iv) In the case of transfer, the amount due for recovery is

correctly indicated in the LPC.

v) In the case of staff transferred from other units, the

amounts due as indicated in the LPC are recoveredcorrectly and recoveries posted accordingly.

NOTE: Since, the expenditure on Festival advance is charged to

the salary head and no suspense Account is maintained, a

complete check of recovery is to be ensured during inspection.

16) DIET CHARGES:

i) Diet charges statements are correctly received and

details are posted in the recovery Register.

ii) Recoveries towards Diet Charges are made as per the

diet charges statement.

iii) The diet charges billed by the Medical Department

are test checked to see that they are correct as per

the prescribed rates. iv) Outstanding as per the register should be reviewed

and advised for proper action for recovery.



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Inspection Section

17) RECOVERY OF RENT:

i) Rent and conservancy charges are recovered from

all those employee’s who are in occupation of Rly.

Quarters.

ii) Rent has been recovered according to plinth area and

type of the quarter.

iii) Water charges are recovered from all the quarters

occupied by Gazetted Oficers, according to the type

of the Rly. Quarters, at the prescribed rates.

iv) It has to be checked that Rent is recovered from theemployees, who have been allotted quarter and not

occupied/delay in occupation beyond 7 days etc.

v) Damaged rent/special licence fee for unauthorised

occupation are correctly recovered as per extant

rules till the quarter is vacated/evicted.

18) REIMBURSEMENT OF TUITION FEES AND CHILDREN ALLOWANCE SCHEME:

i) Necessary Register is maintained to record the

receipt of claims, claims admitted and rejected.

ii) The claims admitted are correct and supported by

authenticated documents.

19) PASSES/PTOS:

i) Stock of passes, PTO books and Blank card passes is

not in excess to the requirement.

ii) Pass/PTO books available in stock are correctly

entered in the Stock Register.

iii) Continuity of the Books (Pass and PTO) are checked

and certiied. iv) Passes and PTOs are issued as per the Rules and as

per the eligibility of each employee.

v) Necessary Register’s are maintained calendar year

wise and all issue of Pass and PTO’s are correctly

entered against each employee’s account.



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vi) Passes are issued on correct route, inclusion of

dependent in the pass, validity period etc. are test

checked from the counter foils.

vii) Family declarations are obtained from all theemployee’s at regular intervals.

viii) Separate Accounts are maintained for issue of pass on

School Account, complimentary passes on retirement

Account. etc.

ix) Used passes are obtained from the employees and

pasted to the counterfoils.

x) The issue of Emergent Duty Passes are as per the

rules and not issued for more than 7 days.

xi) All the pass books & PTOs are kept under safe custody.

xii) Residential card passes are issued as per rules and

separate ledger is maintained for this purpose.

It should be ensured that RCP’s are not issued

for employees those who are availing Transport

allowance. Necessary declaration is obtained for

issue of residential card pass.

20) RECOVERY OF ELECTRICAL ENERGY CHARGES

i) Advice from the SR.DEE is being received for the entire

employee’s who are in occupation of Rly. Quarters for

recovery of Electrical Energy Charges.

ii) Recoveries are made correctly.

iii) Under charges/over charges if any, are adjusted/and

recoveries made correctly.

iv) There are no Railway quarters without recovery of

Electrical charges.

21) RECOVERY OF ADVANCE OF PAY ON TRANSFER:

i) Separate Register is maintained for watching the

recovery of Advance of Pay.



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Inspection Section

ii) Proper sanction is obtained for sanctioning of

Advance of Pay.

iii) In case the employee has drawn advance of pay before

effecting transfer, the same should be recorded in theLPC.

iv) There is no delay in recovery, and recoveries are

completed within a period of 3 months.

22) NIGHT DUTY ALLOWANCE:

i) Proper record is maintained for the night duty

performed, and all the entries are attested by

responsible oficial.

ii) Employees for whom the allowance is claimed are

eligible to draw the same.

iii) The weighted hour of night duty has been correctly

calculated.

iv) The rates of night duty allowance per weighted hourof night duty are correct with reference to the basic

pay of the employee.

v) Proper sanction is obtained.

vi) Certiicate furnished are correct.

23) COURT ATTACHMENT REGISTER:

i) Register for court attachment is maintained properly.

ii) Full particulars regarding employee’s name,

designation, station, staff no., total amount to be

attached and no. of instalments etc., are recorded in

the register and attested by the bill drawing oficer.

iii) Particulars of the court order are clearly written in

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

recovered and noted in the register.

v) Necessary details of payment of the court attachment

to the concerned court i.e. Cheque No. etc. are posted

in the register.



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24) GRANT OF TRANSFER ALLOWANCE:

i) Transfer and package allowance is granted as per Rly.

Bd.’s instruction and the revised orders based on VI

PC. Recommendations are correctly followed.

ii) It has to be ensured that Transfer grant is allowed

based on actual transfers caused out/with reference

to O.O., LPC, Joining report etc.

iii) In case of employees staying in Rly. Quarters, the

transfer and packing allowance is drawn after

vacation of the Rly. Quarters.

iv) The composite Transfer Grant in the case of staff

transferred within the Hqrs. /Divl. Area allowed if

the oficial is actually vacated the residence. This has

to be checked with the authenticated documents.

25) PAYMENTS UNDER WORKMEN’S COMPENSATION ACT:

i) Whether a register is maintained to show the detailsof injury contracted while on duty and the payments

made under W.C. Act.

ii) The amount of compensation paid has been worked

out in accordance with provisions of the act and all

conditions of payment are fulilled.

iii) The amounts of 1/2 monthly payments are adjusted

in the leave salary.

iv) In case of Hospital leave sanctioned, it is as per the

rules and competent authority’s sanction obtained.

v) It has to be ensured that the workman is a regular

Railway employee and not a casual labour, etc.

vi) Where the Railway has paid the compensation for

contractor’s labour by virtue of the provisions inthe Act, it has to be recovered from the contractor

without delay.



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Inspection Section

26) STATION PAY ORDERS:

i) Issue of SPO’s are justiied.

ii) The amount withdrawn from station earnings are

permissible items as per the extant rules.

iii) Accounts copy of the Pay Order is received correctly

in the Accounts Ofice.

iv) The SPO’s received in the accounts ofice are properly

checked before adjusting the transaction in the

respective accounts.

v) The station withdrawals are duly supported bysanction of the competent authority not less than

a Sr. Scale Oficer, SM/ASM’s signature, recipient

signature etc.,

vi) The amount withdrawn is kept in the suspense

account till the transaction is completed, and

necessary vouchers are received.

vii) In the case of amount withdrawn towards funeral

advance etc., the amount is adjusted in the settlement

dues of the deceased employee.

viii) The Head of Account shown in the Pay Order is

correct and expenditure adjusted to the correct Head

of Account.

27) REGISTER OF WITHHELD AMOUNT:

i) A register is maintained with complete details, viz.

PPO reference, date of retirement, reasons for the

amount withheld etc.,

ii) Periodical review is undertaken and prompt action

taken for release of the withheld amounts.

iii) All dues/recoveries are adjusted before the withheldamount is released for payment.

iv) Test check of few cases released from withheld

amount to ensure that amount is released for payment

correctly.



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28) MUSTER ROLLS AND LABOUR PAY SHEETS:

i) Muster Rolls are maintained properly and handled

only by the authorised oficials viz. SE (P.Way), SE

(Works) etc.

ii) It is maintained properly rendering it dificult to

tamper with or make unauthorised additions or

alterations in the entries once made.

iii) To ensure that the Muster sheets are original and

bear the initials of the oficer on the right hand corner

and the same is written daily noting the number of

employees present, absent, leave etc, and closed by

the incharge oficial with initials.

iv) The name, designation and rate of Pay of the employees

are written correctly.

v) Labour pay sheets are made in accordance to the

muster and number of days worked by the employee.

vi) The rate of pay agrees with the service records and is

as per the rules.

vii) Necessary sanctions exists and the nature of work for

which the labourer is engaged correctly written in

the muster.

viii) Absence during assumed attendance has been

correctly adjusted. ix) The muster roll and paysheet agree with each other

in every respect and correct allocation is given.

29) PAY BILLS:

i) Pay and allowances were drawn correctly.

ii) All recoveries are made correctly.

iii) No. of days wages drawn were as per the attendance

and absence during assumed period of attendance

has been regularised correctly.

iv) Special Pay, Personnel Pay, leave salary etc., if any are

drawn correctly and as per rules.



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Inspection Section

v) Rent recovery, Elec. Energy recoveries for the staff

occupying quarters are done correctly.

vi) Increments are drawn correctly.

vii) CGIS and other statutory recoveries are made

correctly.

viii) All accompaniments to the pay sheets are attached

and are correct.

ix) The posts for which salaries drawn are as per the

scale check and necessary scale check statement

attached to the pay sheet. x) In case of work charged posts necessary currency

exists for the posts operated.

xi) In case of Fixation of Pay/revision of pay due to

promotion, revision of the Grade etc. are done

correctly and certiied by Accounts Ofice and suitable

entries made in the service register.

xii) Recoveries towards Festival advance is made correctly

and immediately after receipt of the advance. This

has to be checked duly connecting the memorandum

of sanction.

xiii) T.A. claims are allowed based on certiied copy of the

T.A. summary by Accounts Ofice and are claimed

correctly. xiv) In case of supplementary Pay Bill proper care is taken

to ensure that necessary certiicates are furnished,

and suitable entries are made in the relevant records

to avoid double payment.

xv) Allocation for the wages and recoveries are furnished

correctly.

xvi) In case of Running Staff the wages and allowances,

(Mileage Allowance) OT etc., are properly and

correctly drawn.

xvii) Memorandum of difference is checked carefully for

the differences mentioned there in for every item.



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30) REVIEW OF LAST PAY CERTIFICATES:

It should be seen that:

i) The last pay drawn by the employee has been correctly

mentioned in the LPCs.

ii) Outward LPCs should be test checked with recovery

registers to ensure that the outstanding balances if

any are correctly mentioned.

iii) In case the employee is in occupation of Railway

Quarter, LPC should clearly indicate the period up

to which permission obtained penal rent if any to be

recovered etc.

iv) In the case of Inward LPCs, it should be seen that the

amount due for recovery towards loans and advances,

advance of pay if any are correctly recovered. Inward

LPCs should be test checked with pay sheet and

recovery registers.

31) RAILWAY QUARTER ALLOTMENT REGISTER:


i) Allotments of Railway Quarters are made to the

eligible employees as per the priority register.

ii) There is no delay in allotment or occupation after

allotment.

iii) If there is delay in occupation of Railway Quarter

after allotment i.e. beyond the permissible time, bill

drawing unit has been advised for recovery of rent

besides stoppage of HRA.

iv) There is no quarter lying unoccupied for a long time.

v) There are no instances of unauthorised occupation,

subletting, retention beyond permissible period etc.If so, suitable action has been taken as per extent

rules.

Items that are peculiar to various executive ofice and

the points to be looked into during local inspections

are given below:



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Inspection Section

(III) ENGINEERING OFFICES (HEAD QUARTERS, DIVISIONS

AND FIELD UNITS):

1) Tenders.

2) Agreements and Work Orders.

3) Measurement Books and Register of M.B.

4) Standard Measurements.

5) Contractor Bills.

6) Contractor ledger.

7) Muster Sheets/Labour pay sheet.

8) Stock veriication.

9) Dead Stock/Tools and Plants Register.

10) Materialsat Site Account.

11) Check of RE 9B/Challan Books.

12) Issue of Steel, Cement, to contractors.

13) Ballast ledger/Engine hire charges.

14) Ballast Challans.

15) Building Registers.

16) Register of level crossings.

17) Register of sidings.

18) Review of Money Value Books.

19) Leasing and Licensing.

20) Completion Reports.

21) Monthly Progress Report.

22) List of failed contractors.

23) Risk and Cost Tenders.

24) Variation in Agreements. 25) Imprest Account.

26) Machinery and Plant.

27) Quarters Registers.



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1. TENDERS:

i) The object and purpose for calling Tenders has to be

checked. Necessary estimate and plan is prepared

and sanctioned by the competent authority for thework for which tender is to be called for. Tender

Register is maintained with all relevant details.

Tender notice has been issued with complete details

and suficient time as required has been given. EMD

at prescribed rate has been correctly mentioned. The

name of the tenderers to whom the Tender Forms are

issued and the Money receipt details are indicatedin the Register. Cash collected for the sale of Tender

forms has been accounted correctly.

ii) Tender schedules before loating for Tenders has been

veriied by inance (wherever necessary)

iii) Tenders have been called for in advance of the date of

commencement of work, and due publicity has been

given.

iv) The rules in regard to calling for limited, and open

tenders have been observed.

v) Tender opening register is maintained and that this

duly prepared checked and initialled by the executive

and Accounts Oficers. It should be ensured that

only irms/Agencies to whom tender forms sold havetendered.

vi) Late and delayed tenders are dealt as per instruction’s

issued by Railway Board / GM

2. AGREEMENT AND WORK ORDER:

i) Details of Agreement or work order are entered on a

separate page in the register and particulars of billspassed entered correctly against each agreement.

ii) Particularly the Engineers and extension, variations

in rates/qty. have reviewed the register if any are

correctly indicated.



137

Inspection Section

iii) The rates and the quantities, Agreement value etc.

entered in the register are tallied with the original

Agreement.

iv) Excess if any have been duly authorised by thecompetent authority.

v) Finance vetting has been obtained before issue of

work orders, if the value exceeding the prescribed

limits.

vi) There is no deliberate splitting of WOs to avoid

inance vetting.

vii) Date of completion is correctly mentioned.

viii) The work has been completed with in the due date/

extended date or reasons for delay in execution

properly recorded.

ix) W.Os are duly crossed after inal payment.

3. MEASUREMENT BOOKS:

i) The Register of M.Bs maintained in the AEN’s ofice

have complete details viz., Dt. of opening, to whom

issued, when issued, dt. of return etc.

ii) M. Bs no longer required are returned to AEN’s ofice

promptly.

iii) Proper arrangements exist for preservation of M.Bs

i.e. for 10 years after completion of the work.

iv) Date of Measurement recorded in the M.B. by the

oficials concerned is to be test checked with relevant

record viz., diary, TA Journal etc.

v) Recording of Measurements are done as per rules.

In case of subordinates the measurements are test

checked by oficers as per the prescribed percentage.

vi) The measurements recorded in the ‘On Account’ and

‘Final bills’ should agree with the measurements

recorded in the M.Bs maintained in AEN/Ofice. For

this purpose inspecting oficial should carry certain

paid vouchers of contractor bills.



138


4. STANDARD MEASUREMENTS:

Test check that the service/residential buildings for which

paintings/colour washing is done as per entries in the

standard measurement books really exists as per the entriesin the Register of Buildings.

5. CONTRACTORS BILLS:

i) The inspecting oficial should carry paid vouchers

(contractors bills) and veriied with the MBs available

with AEN/Ofice, to ensure that the work done for

which payment made agree with the initial records.

ii) Material statements accompanying inal bills should

be checked with reference to materials issued to

contractors according to issue Note/Challans and

the balance quantity returned and accounted for

correctly. Empty cement bags returned are accounted

properly.

iii) In term of cl.37 (1) of General Conditions of Contract,

all test checks conducted as required by Railway

should be wholly at the expense of the contractor.

Hence, it should be ensured recovery of charges are

effected from the contractors for testing quality of

steel, cement, bricks etc. unless the same is agreed to

be borne by Railway.

iv) Contractors have accepted the inal measurements.

v) Bills for earthwork are as per the entries in the level

book, earth work statement and measurement books

etc.,

vi) In case of delay/extension etc. necessary penalty to

be recovered as per the subsidiary Agreement are

done correctly.

vii) The contractor is not issued materials more than the

requirement. Physical progress of the work has to be

compared with the issues during inspection.



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Inspection Section

6. CONTRACTORS LEDGER:

i) Contractor ledger is maintained properly in the

Accounts Ofice and all entries are made.

ii) Separate page is maintained for each Agreement and

the ledger is maintained like a personal ledger of

contractors.

iii) The bills passed should be test checked with the

entries in the contractors ledger.

iv) For the stores issued out side the scope of the contract,

the amount is debited in the ledger. v) Periodical review and reconciliation of the contractor

ledger with work register is being done.

7. MUSTER SHEETS/LABOUR PAYSHEETS:

i) Muster/Attendance of Group ‘D’ staff is recorded

eficiently in the Forenoon and Afternoon.

ii) Muster sheets are serially numbered and counter

signed by the authorised oficial.

iii) The detail of work for which the labour is engaged is

recorded correctly.

iv) Labour pay sheet prepared based on muster is correct

and the No. of days wages drawn, after considering

the Absent days etc.v) The attendance is test checked at least once in a

month by Executive Oficial.

8. STOCK VERIFICATION:

i) Stock sheets received from the Accounts Department

have been attended to promptly and remarks sent.

ii) Excess/Shortfall has been adjusted correctly in theledger as per the S.V. Sheets, and remarks sent to

Accounts.



140


9. DEAD STOCK/TOOLS AND PLANT:

i) Separate ledger is maintained for the Dead Stock

items and Tools and Plant.

ii) Each entry in the Dead Stock Register is supported by

date of receipt, from whom received, value etc.

iii) Each Dead Stock item has been supported by proper

identiication number for veriication and check

iv) Dead stock viz. brief cases etc. supplied to the oficials

are having proper acknowledgement.

v) T & P issued to the workers are properly recorded andaccounted with employee’s name and designation.

vi) Proper action is taken for recovery of the cost of the

tool in the case of non-return of tools after the work

is over, or in the event of transfer/retirement of the

employee.

vii) It has to be ensured all the PCs, Computer Accessories

etc. are also entered in the dead stock register and

shown to the ASV during veriication.

viii) The inspecting oficial has to ensure that all the new

items viz., PCs, XEROX Machines, TVs and all other

Electronic items, procured in the ofice for use are

correctly entered in the Dead Stock Register.

ix) Jeep/Lorry/Vehicle should also ind a place in the T &P ledger, and the periodical replacement of tyres etc.

should be recorded in the Register.

x) The usage of XEROX paper, computer loppy etc. have

also to be test checked by the inspecting oficial and

has to be ensured that proper register is maintained

and entries are made as and when used.

10. ‘MATERIALS ATSITE ACCOUNT’ :-

i) As per the provisions in the Engineering Code,

Engineering subordinate has to prepare ‘MAS’ return

for all special work etc. costing Rs.3 lakhs and above.



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Inspection Section

The return has to be prepared work wise indicating

the Materials received, issued and Qty. balance.

ii) ‘MAS’ Returns should be sent to District/Divisional

Unit for further necessary action, and carrying outnecessary adjustments as and when materials are

consumed for the work.

iii) The inspecting oficial has to ensure whether the

‘MAS’ Return are prepared eficiently and necessary

adjustments are carried out. The preparation of

‘MAS’ return will reveal the value of Materials held

by the Engg. Subordinate at any particular period of

time.

11. RE 9B/CHALLAN BOOKS:

i) RE 9B/Challan Books for issue of stores to other Unit/

Contractor etc. are maintained correctly.

ii) The Qty issued has to be test checked with the ledger.

iii) Proper acknowledgements are obtained for all issues.

iv) Necessary adjustments have been carried out for

issue of stores to other units.

v) In case of issue of stores to NonRailway bodies, the

cost of the stores is raised correctly. Necessary

departmental charges and other incidental expenses

are included in the claim.

12. REVIEW OF STEEL AND CEMENT LEDGERS:

i) As per extant instructions of Rly. Bd. the contract

agency has to use his own steel and cement. However,

if the issues are for petty Zonal Works or issues made

to departmental labour, it has to be seen that the

issues are as per the actual requirement and the workfor which it is issued had the sanction of AEN/other

responsible oficial.

ii) The return of empty cement bags by the Contract

Agency has been accounted properly, is to be returned

as per tender conditions.



142


iii) Proper arrangements exist in the SE/Works for

storage of cement/steel etc. and this aspect has also

to be checked by the inspecting oficial.

13. BALLAST LEDGER AND ENGINE HIRE CHARGES BILLS:

i) The supply of ballast by the contractors has to be

measured and recorded in a register. This has to

be personally maintained by SE/P.Way indicating

the location, quantity etc. This ledger has to be test

checked with the Agreement, supplies made and

Measurement Books etc.

ii) The purchases are not made unnecessarily.

iii) Engine hire charges if any advised promptly, to

Divisions/Headquarters for adjustment.

14. BALLAST CHALLANS:

i) The accepted copies of the challans have been

properly kept. ii) The contractor’s loading and unloading bills have

been prepared correctly.

iii) B.T. Trains are not detained on contractor’s account

more than the prescribed time and in the event if

detention is necessary wharf age/demurrage charges

are collected from the agency.

iv) The entries in the B.T. Challans agreed with the

Guard’s Journal concerned.

15. BUILDINGS REGISTER:

i) Buildings Register maintained in the SE/Works/

Ofice has to be veriied to ensure that all the buildings

in his jurisdiction are entered with complete details.

All the new buildings and quarters are entered and

number allotted.

ii) Dismantling of the building is recorded and entries

made correctly with authority.



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Inspection Section

iii) Additions/Alterations are done correctly.

16. REGISTER OF LEVEL CROSSINGS:

i) Records are maintained to indicate the level crossingsfor which maintenance charges are recoverable from

outsiders.

ii) Details for manned/unmanned L.Cs, Engg. and

Operating L.Cs etc. are indicated correctly.

iii) The number of staff engaged for maintenance of the

L.Cs is mentioned.

17. SIDINGS:

i) The No. of sidings in the jurisdiction of SE/P.Way and

connected records has to be checked.

ii) Whether the sidings are periodically inspected by

the SE (P.Ways) and the details intimated to Accounts

Ofice for raising the ‘Debit’ against the siding owners.

(inspection charges)

iii) The inspecting oficial has to check whether any

extra expenditure incurred during maintenance

of siding and if so the cost of the same advised to

Accounts Ofice for preferring the claim from the

siding authorities.

iv) The inspecting oficial has to check whether RailwayStaff working in the siding has availed the rent free

accommodation provided by the siding owner. In such

case, it has to be ensured that they are not drawing

HRA from Railways.

18. MISC. CASH REMITTANCE BOOKS:

i) Misc. Cash Remittance Books has to be checked withreference to the Amount realised towards sale of

Grass, Wooden sleepers if any, and other items for

which cash is received.



144


ii) The remittance particulars have to be compared with

the acknowledgements received and ensure no delay

in remittance.

iii) The correct realisation of the Amount has also to beveriied.

19. LEASING AND LICENSING:

i) Proper Agreement is executed and all Agreements for

leasing and licensing of Engg. Plots, are available.

ii) License fee has been paid periodically and action has

been taken in the case of delay in realisation of duesby levying penalty.

iii) Licensing of land under “Grow More Food” Scheme,

has been provided only to the deserving Rly. Staff and

not to outsiders. No fresh cases of licensing under

“GMF” scheme is given.

iv) Licence fee is realised correctly.

v) Necessary Registers are maintained separately for

acquisition and relinquishment and it contain up to

date information.

vi) Where land has been relinquished necessary credits

have been received.

vii) It has to be ensured that revision of licence fee has

been made whenever the Board revises the same.20. COMPLETION REPORTS:

i) It should be seen whether for all completed works, the

accounts have been inalised and C.Rs drawn.

ii) The pending cases have to be reviewed for the delay.

21. MONTHLY PROGRESS REPORTS:

Monthly Progress Reports indicating the progress of various

phases of works executed/in progress etc. has to be checked.

If there is any abnormal delay, or works not taken up after

awarding the contract, such cases have to be reviewed and

deiciencies if any brought out in the inspection reports.



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22. LIST OF FAILED CONTRACTORS:

A register indicating the list of failed contractors has to be

maintained at Divisional and Head Quarter’s level. This

Register has to be reviewed by the inspecting oficials.Whether the Register is updated periodically is also to be

seen.

23. VARIATION IN CONTRACT:


i) Variations in quantities of any item/items exceeds

25% of the total value of the Tender accepted cost are

correctly dealt with as per extant rules. & Approval of

completed authority for the same is available.

ii) It has also to be seen that in all cases of variation in

quantities exceeds 25% prior Finance Concurrence is

obtained as per extent rules.

24. IMPREST ACCOUNT:

i) Cash Imprest for general purpose and special purposes

like petrol Imprest for welding works etc. has to be

checked by the inspecting oficial. The actual cash

balance is veriied and tallied with Imprest Account

and vouchers on hand veriied and certiied.

ii) The Amount spent from Imprest has to be reviewedto see that they are spent for the correct purpose for

which Imprest is sanctioned.

25. MACHINERY AND PLANT:

Machineries, like welding machines, generators etc. available

in the ield units are correctly accounted and proper history

book is maintained for each item and no machinery is lyingidle or out of commissioning.

26. QUARTERS REGISTERS:

One of the important activity of SE/Works is the maintenance

of staff quarters in his jurisdiction. While reviewing the Staff



146


Quarters Register, it should be seen that: Proper Register

is maintained for each type, no quarters is lying vacant for

longer period, there is no un due delay in allotment of staff

quarters etc. Railway quarter sublet if any or unauthorizedoccupation of Railway Quarters noticed if any during

inspection, the matter should be brought to the notice of

Personnel Department, and to Head Quarters for prompt

action.

9. SPECIAL ITEMS FOR MECHANICAL AND OPERATING

DEPARTMENT:

1) Review of Target of Out Turn and Actual.

2) Review of M & P items and its utilisation

3) Review of Work Orders

4) Review of cost of POH of coaches, wagons etc.

5) Review of Time taken to repair of Rolling stock from

placement to release 6) Deposit Works Hiring/Leasing of Locos etc.

7) Running allowance/O.T. of running staff

8) Review of Man power utilisation in Work shops and C

& W units

9) Periodical Medical Examinations

10) Imprest stores

11) Review of Stores drawn for repair/POH activity

12) Trip ration of HSD Oil to Drivers

13) Duty movement of Drivers/Guards at crew control

ofice

14) Vision Test Registers

15) Check of accounts of Printing and Sale of RailwayTime Tables

1. REVIEW OF TARGET OF OUT TURN:

i) Railway Board has ixed the Target of out turn of



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Inspection Section

POH of coaches/wagons for each workshop. The

infrastructure facilities provided in the workshops are

according to the targeted activities. The inspecting

oficials has to check the out turn of Monthly/Annualwith reference to the Targets ixed and if there is any

shortfall in the out turn the same has to be analysed.

ii) Incurrence of expenditure in the workshop should

corelate with the outturn. This aspect has to be

veriied by the inspecting oficial.

2. REVIEW OF M & P ITEMS AND ITS UTILISATION:

i) The Register of Machinery and Plant available in the

workshop has to be reviewed.

ii) It should be seen that no machines are lying idle or

excess to requirement.

iii) Under utilisation of Plants and Machines if any have

to be identiied and advised for better utilisation or

transfer to other needy units. iv) It should be seen that no Machines are kept out of

commissioning within the warranty period. If so,

action has been taken to replace/rectify the same

within the warranty period.

v) The condemnation of Rolling Stock if any, has been

done correctly as per Railway Board instructions.

3. WORK ORDERS:

i) It should be seen that work orders are issued correctly

and continuity number is maintained.

ii) There should not be abnormal delay in completing the

job.

iii) In case of completed work orders the charges have

been brought to account correctly.

iv) The list of work orders issued during the month has

been sent to accounts promptly and in which no work

orders should be out of series, and the allocation

furnished is correct as per Accounting classiication.



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4. REVIEW OF COST OF POH OF COACHES/WAGONS:

The cost of POH of coaches/wagons etc. so arrived periodically

by the CME on various workshops in the Zonal Railway should

be checked to see that there may not be abnormal variation incosts between workshop to workshop for the same activity.

The reason for variation if any has to be analysed.

5. TIME TAKEN FOR MAINTENANCE OF COACHES/WAGONS:

i) In the case of Primary Maintenance, Secondary

Maintenance and other repairs, it should be seen that

there should not be undue delay for repair and release

of the Rolling Stock as it would affect the wagon Turn

round.

ii) The Register of placement and release of wagon/

coaches in the C & W/Depot and Wagon Workshops

should be reviewed. The reasons for delay if any

should be reviewed and reasons such as want of

spare parts etc. should be brought to the higherauthorities through inspection reports, for remedial

action.

6. HIRING/LEASING OF LOCOS AND WAGONS:

During the inspection of Diesel Sheds/Work Shops, it should

be seen whether any of the locos/wagons leased to outside

bodies like NTPC, APSEB etc.

i) In such cases, necessary cost has been correctly

estimated and claimed/

ii) In case of Repair and POH activities done for the

Locos/Wagons of NonRailway bodies, it should been

seen whether the cost of repair has been correctly

estimated and the party deposited the cost in advance.

iii) The Agreement executed in this connection has to bereviewed to ensure all charges and other conditions

are correctly incorporated and it is being followed.

7. RUNNING ALLOWANCE/O.T. PAYMENT:

i) The inspecting oficial has to carry the paid ‘OT’



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Inspection Section

Journals of Drivers and Guards during inspection of

SS/Ofice, Crew Control Ofice etc.

ii) The overtime shown in the ‘OT’ Statement/Journal

has to be compared with the Signing ‘OFF’/Signing‘ON’ register maintained in the crew control ofice

and other records of SS/Ofice i.e. diaries etc.

iii) The cases of abnormal ‘OT’ payment have to be

checked to ensure that there is no ictitious claim and

the Running staff are not intentionally absent/leave

on rotation basis to claim ‘OT’.

iv) ‘OT’ rules are strictly observed and Minimum roster

hours are observed.

8. REVIEW OF MAN POWER:

i) The availability of staff in the Work- shops, C & W

Depots, SS/Ofice, Diesel Sheds etc. has to be reviewed

critically with reference to the activity performed.

ii) It should be seen that there is no idle labour and there

is proper Work Justiication.

iii) The prescribed yardstick for requirement of men for

POH of Wagon/Coaches etc has to be compared with

reference to the ‘Out Turn’ and surplus staff if any

identiied.

iv) Whether the improvement in method of workingdue to SOPWCRhisticated machinery, closing down

of Loco Sheds, Unigauge etc. has resulted in the

reduction in Manpower at C & W Depot, Work Shops,

has to be seen.

9. PERIODICAL MEDICAL EXAMINATION:

i) The Register of ‘PME’ has to be reviewed and seenthat all running staff Group ‘C’ and Group ‘D’ have

undergone Medical Examination as per the periodicity

and the results recorded correctly.



150


ii) In case of failure in Medical examination, proper

action has been initiated for alternate job without

delay.

10. IMPREST STORES:

i) Imprest schedules have to be checked to ensure

that the stores are correctly recouped and the

requirements are correctly assessed.

ii) If the consumption of stores is very low, and stock held

is more than the average requirement, the unit will be

advised to review and reduce the Imprest schedules

for the next period.

11. REVIEW OF STORES DRAWN FOR REPAIR/POH ACTIVITY:

Materials drawn for repair and POH activity should be

checked to ensure that the stores drawn are properly

utilized according to the requirement and scrap stores are

returned to the Depot immediately. Shop loor inventory of

stores balances to be carried out in one or two shops duringinspection of Work Shops, Sheds etc.

12. TRIP RATION OF ‘HSD’ OIL:

The inspecting oficial during inspection of fuelling point/

sheds should check the issue of HSD oil to the Drivers as per

the shed returns and compare the same with issue tickets

and drivers log Book to ensure that there is no variation. Theconsumption of fuel should also be checked to see that there

is no abnormal variation to the “Trip Ration” ixed by the

Division for the particular section. Variation if any noticed

should be brought out in the inspection report for review of

the Mechanical Department.

13. CREW CONTROL OFFICE:

The duty movement of Drivers and Guards viz. ‘signing

off’ and ‘signing on’ should be checked and compared with

link arrangements. Abnormal link arrangements, noticed

if any, should be reported in the inspection report to avoid

unnecessary payment of OT/Running allowance.



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Inspection Section

14. VISION TEST REGISTERS:

It should be seen that;

i) Vision test register is maintained with all relevant

particulars.

ii) Drivers, Guards, etc. have been medically examined

as per the periodicity and the result of Medical

examination indicated in the register.

iii) The register is regularly checked and reviewed by the

responsible oficials of the Operating Department.

10. SPECIAL ITEMS FOR COMMERCIAL BRANCH:

LICENCE FEE FROM VENDORS, BOOK STALL KEEPERS, PLAT

FORM STALL CONTRACTORS, CYCLE/SCOOTER STANDS ETC : -

i) It should be seen that the licence fee is correctly levied

and necessary contracts have been entered into as

per extant rules.

ii) The licence fee due has been correctly realised and

remitted to Railways account.

iii) If the license fee/royalty is to be recovered based on

Annual sales, it should be seen that proper machinery

exists to verify the Annual Sales, and the amount of

license fee is correctly recovered.

iv) Conservancy/Cess charges to be levied for all Platform

Stall Contractors.

HANDLING CONTRACTS:

i) It should be seen that the handling of parcels, goods

etc., at important stations based on the result of

lowest tender and proper agreements have been

executed. ii) Handling Bills sent to Accounts Ofice have been

prepared correctly and relevant records available

with the contract agencies.



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REFUNDS/CONCESSIONS:

It should be seen that the refunds arranged are admissible as

per rules.

ACCOUNTS OF SALEABLE PUBLICATIONS VIZ. TARIFFS,

CONCESSION BOOKS, TIME TABLE ETC.:

i) Proper Accounts has been maintained for each of the

item received and sold.

ii) Un-sold copies if any are promptly disposed/return

to the required stations.

DEMURRAGE AND WHARFAGE:

i) Demurrage and Wharf age charges waived at different

levels are as per the permissible limits.

ii) There should not be any irregular waival, which will

result in loss of revenue to the railways.

iii) Outstanding dues are realised without delay.

REVIEW OF SIDING AGREEMENTS:


i) Siding Agreements have been executed for all the

sidings, which have been opened for Trafic.

ii) Fixation of Trip charges and siding charges are ixed

without delay with inance approval.

iii) Sidings closed for trafic if any should be intimated

to Engineering Department advising for dismantling,

and disposal of released materials.

iv) Before closed/dismantling it should be ensured that

railway dues are recovered from the siding owners.

REVIEW OF CLAIMS CASES:

i) The claims case admitted in the claims branch areproperly investigated before payments are arranged.

ii) Claims cases involving staff responsibility if any

should be referred to the concerned department for

initiating action.



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Inspection Section

iii) There should not be undue delay, in settling the claims

cases.

INSPECTION IN S & T BRANCH:i) It should be seen that proper arrangements exist for

disbursement of Telephone Bills to various oficers.

ii) New Connections, Provision of new ‘DOT’ phone,

shifting of ‘DOT’ phones etc. is done with the sanction

of the competent authority.

iii) No delay in shifting/disconnecting ‘DOT’ phones from

the residence of the oficer after superannuation/

transfer etc.

iv) In case of Temporary connection of ‘DOT’ phones for

the VVIP’s visit (Railway Minister) etc., the deposits

paid to the Telephone Department are adjusted

immediately after the event is over.

v) Walkie-talkies are supplied only to the essential staffand every issue had the sanction of the competent

authority.

vi) Provision of STD/Internet connection to oficers are

made only with the approval of Competent Authority

and as per the guidelines issued by the Board.

vii) The purchase orders for supply of cables, S & T

equipments should be reviewed with reference to theterms and conditions.

viii) For loss/theft of S & T cables/equipment it should be

seen that the matter has been reported to Security

Department and adequate measures are taken to

tighten the security arrangements.

ix) Apart from the above, the following items viz., Reviewof stores, purchase orders, regularization of excess

calls, personnel calls made on DOT Phones, etc. are

also to be reviewed.

x) Assets Register is kept up to date.



154


SECURITY BRANCH :

The following items should seen during inspection of Security

Branch.

i) The policy and procedure adopted for recruitment of

RPF personnel.

ii) Deployment of RPF personnel to bandobust duties and

recovery of charges from the concerned Ministries/

Departments. It should be seen that charges are

correctly worked out and included in the claim.

iii) Log Book of Vehicles, Uniforms Registers, imprestaccount, etc.

iv) Register of Theft detected and reported to the

Security Department by other Departments and

action taken thereon.

v) Register of Arms and Ammunition reviewed to ensure

that receipt is correctly posted.

vi) Register of uniform should be checked. The receipt

and issues are correctly accounted for and issues are

properly acknowledged.

vii) Status of the apprehended cases dealt by RPG and

GRP and the position of enquiries.

GENERAL BRANCH:

Log Boo of Ofce Staff Cars: -

i) It should be seen that the staff cars have been used for

oficial purposes Only and the oficers signatures/

initials obtained against each movement.

ii) If the cars had been used for private purposes,

necessary charges as applicable have been billed and

recovered.

iii) Drawal of petrol commensurate with KMs in usage

and there is no abnormal variation in the consumption

pattern.



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Inspection Section

iv) Repairs to the Staff cars have been done as per the

provisions contained in ‘SOPWCR’ and all major

repairs had the certiication from the nominated

oficers of the Mechanical Department.2. Quarter’s Registers for allotment of quarters to oficer

should be checked to see that there is no delay in allotment of

Railway Quarters and the Railway Quarters once allotted is

occupied within 7 days. In case of delay in occupation (after

7 days) rent at prescribed rates have been recovered besides

stoppage of HRA.

3. Retention of Railway Quarters after permissible period

during deputation, transfer etc. are dealt with correctly as

per extant rules.

4. Special Imprest/Entertainment expenses: The accounts

should be veriied and satisied that every transaction is

correctly accounted for and supported by voucher. Balance

amount left over if any after the occasion has been remitted

back to Railways and necessary vouchers submitted to

Accounts Ofice.

5. The accounts related to the allotment of Rail Kalyan,

Community Hall, allotment of Oficer’s Rest House

on private account, etc. should also to be checked

to ensure that the amount collected are properly

accounted and remitted to Railways Account. Therules relating to the allotment are correctly followed.

STORES BRANCH :

1. REGISTER OF PURCHASE ORDER: IT SHOULD BE SEEN

THAT:

i) The Register is eficiently maintained. Continuity of

P.O. Nos. is maintained.

ii) The P.O. is signed and issued by the authorised oficial.

iii) The COS is notiied of the defaulting irms for action.



156


2. RECEIPT NOTES:

The quantity received as per irm’s invoice and quantity

accepted as per Day Book of Receipts/ledger should be

compared to ensure that there is no discrepancy. The storesreceived are inspected before delivery as per the inspection

clause wherever applicable.

3. REGISTER OF SAMPLES:

The register should be reviewed to ind out whether proper

accounts are maintained for receipts of samples, their

return to the irms or taking them to stock by credit to StockAdjustment Account. The disposal of the nonreturnable

samples should be properly exhibited in the register. All

disposals are covered by proper sanction of the competent

authority.

4. REJECTIONS REGISTER:

The register should be reviewed to see that the rejectedstores if any are properly disposed off and the irm advised

for replacement. All such rejections should have proper

sanctions and the Accounts Ofice and COS advised for

suitable action.

5. REGISTER OF DEFAULTING FIRMS:

It should be ensured from a general review of the registerthat the defaulted irms have been noted and orders are not

placed from irm’s black listed for default in supply.

6. REGISTER OF REQUISITIONS:

The requisitions received for procurement of stores is vetted

by Accounts Ofice and requirement are assessed correctly

based on the past consumption. The long outstanding

requisitions should be cancelled in consultation with

executive concerned.



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Inspection Section

7. THE PROCUREMENT ACTION INITIATED BY COS SHOULD

BE CHECKED AS UNDER:

i) Tender notices have been called for as required and

relevant detailed furnished.

ii) Sale of Tender forms, and the amount received are

correctly accounted and remitted.

iii) Tenders have been opened at the advertised time,

date, in the presence of Accounts representative and

irm’s representative.

iv) All procedures relating to the opening of Tenders havebeen correctly followed and there is no deviation.

v) Tabulation has been done correctly duly illed in all

columns.

vi) Tabulation forms veriied by Accounts.

vii) Tender committee has been formed as per the

provisions and all relevant facts have been furnished

to the TC members.

viii) Purchase orders are placed based on the TC

recommendations duly accepted by the competent

authority.

ix) Purchase order before release has been veriied by

Accounts wherever necessary.

x) Extensions to the due date of delivery/amendmentto the P.O. etc. are given only as per rules and

associated inance views obtained wherever inancial

implications are involved.

xi) In case of defaulted irms risk and cost action has

been initiated as per rules.

xii) Liquidated damages for belated supply has beenlevied as per rules.

8. SURPLUS STORES:

It should be seen that prompt action has been initiated to form



158


a survey committee for disposal of surplus and nonmoving

stores.

9. AUCTION SALES:

Stores already declared as surplus should be disposed quickly

through auction sales. It should be ensured that accounts

representative associated in the auction sales.

10. Apart from the above, the following aspects should also been

checked by the inspection team especially in Depots,

a) Material in Depots

b) Bincards (Physical balance with Bincard balance)

c) Weighment Register

d) Inward/outward wagon register

e) Challan Book

f) Cash remittance Notes in case of auction sales

g) Empties accounts h) Pending stock sheets

ELECTRICAL BRANCH

Agreements entered into with the State Electricity Boards for

purchase of e lectrical energy should be checked.

1. In case of supply Electrical energy for Traction

purposes, the contract demand and actual

consumption should be checked. If the consumption

is very low than the contract demand or higher than

the contract demand electrical department should be

advised for proper review and to revise the contract.

2. Meter Reading;

i) It should be seen that Meter reading hasbeen done from all the residential quarters

regularly at the prescribed intervals.

ii) The entries are not been made in pencil.

In case, if the Railway Quarter is locked,



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Inspection Section

necessary entry made as “house locked” in

the Register.

iii) Bills have been prepared in time and sent to

the Personnel Branch and Accounts Ofice forrecovery without delay.

iv) Meter reading in respect of NonRailway

bodies viz. Plat Form Stall, G.R.P., R.M.S

ofices etc. should be taken every month and

bills raised at the appropriate rates. Whether

bills are issued every Month should also be

checked.

v) It should be ensured that the electrical energy

charges for outsiders are billed at commercial

tariff rate.

3. Register of M & P Items:

i) The register is kept uptodate.

ii) The condemned Transformers, Electrical

poles etc. are disposed through DS8.

iii) Assets register is kept upto date.

4. The imprest stores available with AEF, and other

stock holders should be checked to ensure with supply

and stock. If the issues are less than the stock held,

prompt action has been taken for revision of imprestschedule.

5. Surplus stores if any should be reviewed and advised

for prompt disposal.

RAILWAY RECRUITMENT BOARD

POINTS TO BE SEEN: -

i) Postal Orders, Service Stamps etc. collected from thecandidates are properly accounted.

ii) There is no delay in encashment of postal orders.

iii) Remuneration paid to the examiner for setting



160


question papers, and valuation of answers with

reference to Railway Board instructions from time to

time.

iv) Expenditure incurred in the conduct of the massexamination with reference to the prescribed

schedules and excess expenditure if any regularised

with the sanction of the competent authority.

v) Method of disposal of old answer sheets.

vi) Remuneration/over Time allowance paid to the

staff in connection with conduct of Examination and

interviews.

vii) Receipt and expenditure account.

viii) Review of passes issued to candidates called for

interview.

ix) Proper security arrangements exists for safety and

preservation of records.

x) Rebate for the usage of franking machine is regularly

claimed from the postal department at the prescribed

percentage.

OFFICE OF THE PUBLIC RELATIONS :

The following aspects should be looked into specially:

i) Advertisement, display boards, sign boards,

hoardings etc. This phase of work has beendecentralised at the Divisional level. It should be seen

that proper agreements have been entered into with

the advertisement agencies, irm’s etc. The security

deposit, advertisement charges are collected properly

and remitted to Railways account.

ii) It should be ensured that the payments are made

only by DD/Cash. In the event of payments are made

through cheque (special case) it should be ensured

that the cheques received are realised.

iii) In the event of nonrenewal of advertisement, display



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Inspection Section

board etc., it should be seen that the same are

removed from the Railway premises.

iv) CCTV:

(a) Agreement has been executed properly and

the charges due are Correctly realised.

(b) Apart from the licence fee it should seen that

Electrical Energy charges, rent for the space

provided etc. is realised periodically.

v) Imprest Account and special contingent fund (imprest)

should be checked and seen that the expenditure metfrom the same is permissible and proper vouchers are

kept.

vi) Conducted Tours/VIP’s visit:

The accounts for the amount drawn for conducted

tours arranged for VIP’s, Media etc. should be checked.

It should be seen that proper accounts for the amount

spent are kept and the balance amount left if any are

promptly remitted to Railway Account.

vii) Register for Photographic materials:

(a) It should be seen that proper accounts are

kept towards purchase of ilms and other

materials used for photography.

(b) video/photo coverage for the oficial functionshad the approval of competent authority.

MEDICAL BRANCH

1. PURCHASE OF MEDICAL STORES

i) ‘CMD’ at Hqrs. is authorised to procure Medical stores

as per the provisions contained in SOPWCR. The

purchase orders issued by the ‘CMD’ for supply ofdrugs to the various Railway Hospitals, Health Units

over the Railway has to be checked.

ii) It should be ensured that the power for procurement

and the inancial limit etc. are as per the rules.



162


iii) The P.Os. are issued as per the extant instructions

and are signed only by the authorised signatory.

iv) Amendment/Cancellation of P.Os. are issued only

with the approval of the authority who is competentto procure the Medicines initially.

v) The purchase orders are placed based on proper

assessment of requirement viz. indents from various

units, and certiied by Accounts.

vi) Proper action has been initiated in the event of failure

of irm to supply the drugs as per the conditions

stipulated in the P.Os.

2. STOCK OF MEDICINES;

i) It should be seen that, the stock book of drugs is

maintained up to date. The receipt and issues agrees

with the receipt and issue vouchers. Date of expiry

of Medicines are clearly indicated in the Register

separately and no drugs are kept in stock after thedate of expiry.

ii) Action has been taken to dispose off the time expired

medicine.

3. EXPENDITURE ON FAMILY PLANNING;

i) It should be seen that the expenses involved are

correctly assessed and debits transferred to theMinistry of Health.

ii) The special cash imprest drawn towards various

family planning camps are properly accounted for

and balance amount if any remitted correctly.

iii) Target set by the Railway administration has been

achieved and if not the reasons should be analysed.

4. OCCUPANCY REGISTER;

i) The number of beds available and the occupancy

position of the inpatients of the health unit should

be checked to ensure that the facilities provided are

properly utilised.



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Inspection Section

ii) Free treatment is given only to the eligible persons.

iii) In case of admission of NonRailway patients for

treatment, proper sanction has been obtained and the

prescribed charges collected in advance.

5. DIET CHARGES:

i) In case of inpatients admitted in the Railway

Hospitals who have availed diet, (other than those

who are eligible for free diet) necessary diet charges

at prescribed rates have been correctly worked out

and sent to the Personnel Department and Associated

Accounts for recovery.

ii) If the diet is provided to the NonRailway persons and

the retired Railway employees, the required charges

are collected in advance and the accounts are settled

before the patient is discharged.

6. WASHING OF LINEN:

It should be seen that proper records are maintained for the

number clothes handed over to the Dhabi’s for wash, date of

issue and date of return. Necessary agreements have been

entered into and the charges paid are correct and reasonable.

7. REGISTER OF M & P ITEMS, SURGICAL INSTRUMENTS,

UNIFORMS, LINEN ETC.:

i) It should be seen that necessary registers aremaintained properly separately for the above items.

ii) receipts and issues are posted correctly and

supported by Receipt Vouchers, acknowledgements

for the issues.

iii) All the M & P items, surgical instruments available

in the Railway Hospital are in working condition and

if not proper action has been taken to repair or todispose the same.

iv) There is no item kept as idle, without being

commissioned.

v) Assets Register is kept upto date.



164


8. DIETICIAN ACCOUNT:

i) The imprest cash sanctioned and available with the

dietician should be checked and cash balance veriied

and certiied.

ii) The nature of transactions met from imprest should

be checked to ensure that the items purchased, viz.,

vegetable, provisions etc. are at reasonable rate and

proper records (ledgers) are maintained.

iii) It should be seen that the items issued to the cook

are according to the scales and the number of meals,

breakfast prepared daily are as per the requirements

certiied by the Matron/Doctor as the case may be.

iv) Arrangements (Agreement) exist for supply of

Bread, Milk, Meat etc. should be veriied and the

requirements/indents placed are not in excess. The

charges paid are reasonable.

v) The Attendance Register and staff sanctioned forpreparation and supply of diet should be veriied to

ensure that there no excess staff.

vi) The stock available in the storeroom should be test

checked and compared with the ledger balance to

ensure that there are no discrepancies.

vii) Tools and Plant Register should be veriied and

unused/empties are properly disposed off.

9. LOG BOOK OF AMBULANCE VANS:

i) It should be seen that the movement of the vehicle is

properly shown and acknowledgements obtained.

ii) Charges wherever due are properly collected and

remitted to Railways Account.

10. INSPECTION NOTESREVIEW:

The Inspection Notes of CMD and other Oficers should

be reviewed to see that proper corrective action is taken

wherever inancial irregularities are noticed.



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Inspection Section

11. CASH IMPREST:

i) The cash imprest should be veriied and balance

certiied in the Imprest Register.

ii) It should be seen that the amount spent from imprest

are reasonable and correct procedures are followed.

iii) In case the medicines are purchased locally to meet

urgent need, sanction of the competent authority has

been obtained for such purchases.

12. RAILWAY EMPLOYEES CONTRIBUTORY HEALTH SCHEME:

i) It should be seen that proper records are maintainedand the prescribed charges are collected correctly.

ii) The amount collected are properly remitted to

Railways revenue. The Money Receipt Book should be

veriied to see that the continuity of the serial number

is maintained. Acknowledgements for the amount

remitted, should be test checked with the amounts

collected.

iii) The membership is renewed every year, No retired

employee is allowed for treatment unless they have

become the members and charges at prescribed rates

are paid correctly every year.

iv) In case diet is provided to the retired employees under

RECHS, the diet charges are collected in advance orbefore the patient is being discharged.

13. REIMBURSEMENT OF MEDICAL CLAIMS:

i) All claims for reimbursement of Medical claims

processed in the CMD’s/ Const’s Ofice are properly

justiied and certiied by the Medical Units concerned.

ii) Relevant rules are correctly followed while processing

such cases before the same being sent to Accounts

Ofice for payment.

14. In the case of inspection of Health Units, the inspecting oficial

should check whether test check at prescribed schedules

on Plat Form stalls (catering items) are done by the Health



166


Inspector/ADMO and necessary records maintained at their

end.

15. Apart from the above checks, the following aspects should

also be seen during inspection:

i) Privilege passes, EDP, Medical Passes issued to the

patients.

ii) Staff quarters.

iii) Leave records.

iv) Overtime/NDA records

v) Scooter/Cycle stand contract if any.

vi) Deputation of doctor on study leave.

vii) Honorarium/Fee if any received by doctors etc.

11. INSPECTION OF EDUCATIONAL INSTITUTIONS

A) RAILWAY SCHOOLS: -

The Head Quarters as well as Divisional Accounts Ofice

should undertake as part of their inspection programme,

the inspection of Railway Degree College (Hqrs. only)

Junior colleges and schools. The following items should

be seen especially during inspection of accounts of the

Railway Schools in addition to the items common to all the

ofices. Similar checks should also be exercised in respect of

NonRailway schools if they are in receipt of Grantsinaid from

the Railway Administration.

1. CASH BOOK :

The maintenance of Cash Book, Receipts and Payments

should be checked. The Cash Book should be closed daily

and attested by the Principal or Head Master i.e. Head of the

Institution. The Cash Book should have been reconciled withBank Pass Book and there should not be any variation.

2. SPECIAL FEE AND TUITION FEE:




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Inspection Section

i) Special fee collected from the students are as per the

instructions issued by the Railway administration.

ii) In case tuition fees are collected from the students,

the tuition fee collected from the students should beremitted to Railways account. The connected Money

Receipts are to be checked, for the amount remitted.

iii) Tuition Fee and Special Fee collected should agree

with the number of students in the college/schools

excluding those students who are exempted from

collecting such fees.

3. SCHOLAR SHIP:

Scholar ships received from State Governments, for SC/ST, BC

students should be veriied to ensure that they are properly

accounted and distributed to all the eligible students.

4. SPECIAL FEE:

The special fee collected from the students are authorised

to retain by the college/schools and the expenditure should

be spent in accordance with the instructions issued by the

DEO (District Educational Authorities) or by the University in

the case of Railway Colleges. The amounts spent for various

activities viz., Sports, Lab, Parents-Teachers Association

etc. should be checked to ensure that separate accounts are

maintained, and the expenditure agree with the vouchers for

each transaction.

5. GRANTSINAID:

In the case of Railway Colleges, it should be seen that the ‘UGC’

Grant received has been properly utilised for the speciic

activity for which it was granted. The records exclusively

maintained for this purpose should be checked.

6. MISC. CASH :

As the Railway schools and colleges are maintained by the

Railway Administration, the schools premises should not be

utilised for any other purposes unless it is authorised. Licence



168


fee collected if any, for hiring the premises should be remitted

to Railways. Such instances if any should be checked.

7. UTILISATION OF FUNDS:

Apart from special fee collected from the students, Educational

institutions are sanctioned funds from Railway Budget, funds

from Women’s Organization etc. The inspecting oficial

should check the utilization of such funds, and the accounts.

8. The performance of the school/college with reference to

the students strength and pass percentage in different

examinations conducted during the academic year should be

checked in order to ensure that the infrastructure facilities

provided are properly utilised to achieve the intended

beneits.

9. REGISTER OF LIBRARY BOOKS:

It should be seen that the register is posted uptodate and

the receipts have been correctly accounted for and proper

system is adopted for issue of Books to students. Necessaryrecovery has been made from the students concerned in the

event of loss of Books issued to them.

10. Tools and Plant Registers should be reviewed to ensure that

all items are accounted for and periodical stockveriication

carried out.

B) INSPECTION OF TRAINING CENTERS:As a part of the inspection programme, the Headquarters and

Divisional accounts ofice should include Training institutions

in their annual programmes. All the training institutions

should be periodically inspected at least once in three years

(in case of small institutions) The following items should be

specially checked during inspection of accounts in addition to

the items common to all the units.

1. TRAINING PROGRAMME:

i) Training facilities and courses conducted during

the year should be reviewed to see that the training



169

Inspection Section

facilities provided by the Railway Administration

have been properly utilised.

ii) The number of courses conducted and the attendance

of staff to various courses should be checked. Ifthe staff attended to each course is less, the matter

should be reported to the Head of the Department

and Personnel Branch.

2. TEACHING ALLOWANCE:

The number of instructors sanctioned and actual number of

instructors available should be checked. Teaching allowance

to the instructors is admissible only to those Training

Centres as speciied by Railway Board. It should be seen that

Teaching allowance is paid only to those instructors who

have been screened by the CPO and paid only to those who

were on deputation for a period not exceeding ive years.

3. CATERING FACILITIES:

The facilities provided by the Railway administration to thetrainees for messing arrangements should be checked.

4. TOOLS AND PLANT:

Tools and Plant Register should be reviewed for proper

accountal of all items including items provided in the Hostel

to the Trainees. Whether periodical stock veriication

conducted or not should be checked.

5. LIBRARY BOOKS;


i) Whether Register is maintained for receipts of all

Books with complete details.

ii) Issues of Books to the Trainees should have proper

acknowledgements.

iii) In the event of non-return of books/loss of books

the cost of the books should be recovered from the

trainees concerned.

6. The accounts of uniform, vehicles, passes should also be

checked during inspection.



170


The results of statutory audit are communicated through:

i) Speciic reports of more important and serious

irregularities discovered in the course of Audit of

Accounts, Departmental ofices and Station Records.

ii) Audit Notes detailing minor irregularities discovered

in the course of Audit of Accounts ofice records.

iii) Inspection Reports showing the results of Audit of the

initial records of Executive ofices. (Para 801AI)

Communication received from Audit relating to the above will

be in the form of Audit Notes, Inspection Reports, Special lettersand Draft paras. Audit Notes and Inspection Reports will be in

two parts.

i) Part IAudit Notes will detail important irregularities

noticed by the Audit during the monthly test audit of

the Accounts ofice.

ii) Part II Audit Notes will cover minor irregularities.

iii) Part I Inspection Report will show major irregularities

noticed by the Audit while inspecting the initial

records of Executive ofices and Part II will show

other cases.

iv) Special letters of speciic Report may deal with

important procedural defects noticed during the

monthly audit, which the Audit may desire it to bebrought through speciic reports to be sent to the

Executive Oficer.

v) Any case that the Audit may consider to involve

major inancial irregularities or procedural defects

resulting in infructuous expenditure may be taken up

in the form of Draft Paras.

The Principal Director of Audit in Duplicate issues audit Notes,Audit Inspection Reports and Special letters in duplicate. In

the case of Inspection Reports one copy of the same should be

sent to the Executive oficer whose ofice was inspected for

his remarks. The Accounts oficer will examine the reports



171

Inspection Section

and furnish remarks, which should be scrutinised carefully,

and if further clariications are necessary, this should be

called for from the Executive oficer before issue of inal reply

to Audit Oficer. If the Audit Oficer issues further commentson remarks already furnished, this should be dealt with in

the Accounts Ofice independently where possible; if not, a

reference should be made to the Executive Oficer to obtain

the clariication sought for by the Audit Oficer.

12. DISAGREEMENT WITH AUDIT:

If requested by the latter, make a reference to the GeneralManager. However, when the question is one of Accounts

Procedure, the matter should be referred to the Finance

Directorate of the Railway Board. The General Manager will

be requested to obtain orders of Railway Board if the matter

is beyond his competence to decide. While making such

references the Accounts Oficer should send a verbatim copy

of the Audit objection and statement of his own views. AuditNotes should be processed in the Accounts Ofice and reply

issued.

Replies to Part I Reports, speciic reports and important

irregularities should be sent to the Audit Oficer as soon

as possible. No formal reply to Audit Notes and Inspection

Reports Part II is required to be sent to the Audit. The disposal

of such Audit notes and Inspection Reports should be madeavailable to the Director of Audit whenever required.

13. TIMELINE FOR REPLY TO AUDIT REFERRENCE :

It is of utmost importance that all audit objections in one or

the other form mentioned in Para 2 above should be given

immediate attention. Railway Board have stressed the need

for expeditious disposal of all audit objections and directedthat there may not be any outstanding reports of over 3 years

old. By ensuring that even at the initial stages Audit objections

are dealt with promptly completely and at adequate level,

the need for Audit Oficer taking up the same subject in



172


the Principal Oficer’s Meeting and at Railway board’s level

could be reduced. In order to ensure their quick disposal, a

proper record should be maintained in the Accounts Ofice.

The Register, wherein should be entered all the Audit Notes,Inspection Reports and Special letters with details of action

taken, should be periodically reviewed to see whether inal

reply has been issued in individual cases. If the action is

pending with the Executive Oficer, the Oficer concerned

should be contacted or addressed to furnish immediate reply.

If the action is pending with the Accounts Ofice, the reports

should be put up to the Accounts Oficer with remarks fordelay in the issue of reply. If no inality is reached even after

correspondence, the Accounts Oficer should arrange for a

tripartite meeting between Accounts, Audit and the Executive

Oficer concerned after ixing the date in consultation with

the Executive Oficer concerned and Audit Oficer. The

Audit Oficer’s acceptance of the remarks offered during the

discussion should be recorded in the minutes of the meetingand where further clariications are called for, these should

be obtained from the Executives and furnished to the Audit

Oficer.

Executive Oficer should also maintain a register showing

the action taken on each audit objection. This register should

be reviewed by the Executive Oficer also to ensure that

effective actions have been taken for the disposal of all auditobjections. The Accounts Inspection staff should speciically

examine the effectiveness of the action taken and deiciencies

noticed should be suitably taken up.

14. MINIMIZING THE NUMBER OF OBJECTIONS:

The draft inspection report should be discussed with the

Executive Oficer concerned before making it inal. This isknown as intra-conference. Such steps should also be adopted

in minimizing the number of objections and also reduced

unnecessary work. The following steps, therefore, should be

taken in this direction.



173

Inspection Section

i) The Audit Oficer should discuss draft Inspection

Report and Executive Oficer after the inspection is

completed. It is known as exit Conference.

ii) As per extent instructions, replies to the Draft AuditReports i.e. ‘DOS’ should be sent to the Audit Oficer

within 30 days after the inspection is completed.

This will enable the Audit to inalise the reports and

to minimize the number of paras.

iii) The Executive Oficers are expected to verify the facts

and in case they are correct and complete they should

record their acceptance in writing. If it is otherwise,

they should amplify the position to the Audit Oficer

in writing so that the Audit view may be based on

complete facts.

iv) In the case of minor objections, the Executive Oficer

concerned should take remedial action promptly and

the fact that such an action is taken should be noted in

the minutes of the discussion so that these objections

may not appear in the reports.

v) In regard to cases where regularisation by higher

sanction is necessary, these should be obtained

quickly. In the event of any delay in obtaining the

sanction, the Audit may be advised of the position

so that they may consider the inclusion of the itemin the report. In any case, the requirement of higher

sanction should be discussed in the meeting and the

matter should be settled.

vi) If the Audit Oficer has objected to any payment of

recurring nature and if the views are acceptable

to the Accounts Oficer, he should place the amount

under objection, the payment being treated asprovisional pending receipt of formal orders from

higher authorities or settlement of the objections by

the Audit.



174


A copy of the minutes of discussion held between Executive

Oficer and Accounts Oficer should be furnished to the

Headquarters ofice for information.

15. DRAFT PARAS:

All the important cases coming to the notice of Audit which

Audit considers to be it case for incorporation in the C & AG’s

Report for Presentation to Parliament will be brought to the

notice of Railway administration in the form of Draft Paras.

A procedure has been evolved by the Railway Board

according to which before any item is taken as Draft Para,

the Principal Director of Audit would generally address, D.O.

letters to the Heads of Departments/FA & CAO forwarding a

statement pointing out the irregularities noticed and asking

for veriication of facts and igures. The board for replying

to these references has laid down a time limit of four weeks.

In case, where the veriication of the facts and igures

would involve reference to a number of divisions and other

authorities and would require more time for veriication, the

PDA should be addressed to extend the time limit suitably.

FA & CAO has to coordinate with PHODs concerned as well as

Railway Board for speedy disposal of Draft paras.

This procedure would enable the Heads of Departments/FA &

CAO to devote adequate attention to the points raised by the

Principal Director of Audit and reduce in a way the numberof formal Draft Paras to be issued. It is therefore, important

that adequate attention should be paid to such references.

Draft Paras are generally on the outcome of earlier audit notes

or correspondence from Audit. To deal with these draft paras,

Railway Board have laid down procedure. According to

which Principal Director Audit will prepare draft paras and

addressed to General Manager, sending copies thereof tothe Railway Board (EDA) and the DAI (Railways) Copies of

the Draft Paras will also be endorsed to the FA & CAO and

concerned PHODs. Railway Administration should give their

inal reply after consultation with Board within a period of 8



175

Inspection Section

weeks. The reply should be sent to the Board within 5 weeks

from the date of receipt of Audit Paragraphs so as to allow

time for further enquiry and correspondence within the

overall period of 8 weeks within which a inal reply has to besent to the Principal Director of Audit.

Keeping the Boards directives in view, these draft paragraphs

should be dealt with promptly and comprehensively at the

highest level possible. As the General Manager is required

to reply to the Draft paras, it is necessary for the PHODs

concerned to personally examine every detail concerning

draft paras so that replies may be well informed, completeand effective particularly in regard to facts which might have

inluenced the authorities concerned at the decision making

stage. At the Divisional level, the Divisional Railway Manager

should nominate a JAG to coordinate the collection of

information at the divisional level. It will be the responsibility

of the Divisional Oficer primarily concerned with the Para

to verify the facts and igures furnished therein. The SeniorDivisional Finance Manager/DFM should also give highest

priority in regard to veriication of factual information

pertaining to Draft paragraphs.

16. POINTS TO BE NOTED WHILE DEALING WITH DRAFT

PARA:-

While dealing with the Draft Paras, the following pointsshould be borne in mind and complied with by all concerned;

i) It should be ensured that all important and pertinent

facts having a direct bearing on the case, and the

extenuating circumstances, if any, which if not taken

cognisance of may lead to incorrect appreciation

of the case, are brought out in the supplementary

remarks to the Draft Paras.

ii) While pointing out the inaccuracy of the igures, the

reasons as to why the igures are considered incorrect

and what in the opinion of the Administration should

be the correct igures, should be clearly furnished.



176


As to the facts also, a similar procedure should be

followed, furnishing the orders, instructions, etc., if

any issued on the subject.

iii) Procedural lapse pointed out should be veriied and,if approved, the correct procedure introduced. The

responsibility for the lapses pointed out should be

ixed and action taken to prevent recurrence indicated.

Progress made regarding disciplinary action, if any

taken should be indicated. The circumstances, in

which deviations/lapses were allowed to occur,

should be specially examined. iv) Where recoveries or overpayments are the subject

matter for comment, action to recover the amount

and the recoveries made so far should be furnished.

v) It is also necessary to examine, where applicable,

the inancial implications, if the Audit contention

is conceded. Where more than one alternative is

possible, the relative economics should be gone intocarefully.

vi) Where necessary, the points should be discussed

with the Local Audit Oficer, along with the Accounts

Oficer.

vii) At every stage, the associated Finance/Accounts

Oficer should be consulted and the Draft Paras,

scrutinised conjointly, the comments, etc., duly vettedby the Associated Accounts Oficer with reference to

all available records.

viii) In order to bring down the outstanding Draft Paras

and furnish satisfactory remarks to Principal

Director of Audit, frequent review meetings with the

concerned HODs should be arranged.

17. THE FOLLOWING TIMETABLE SHOULD BE OBSERVED

FOR DISPOSAL OF AUDIT PARAS.

i) Despatch of the copies of paras by the FA & CAO to all

HODs etc. 2days on receipt in Accounts Ofice.



177

Inspection Section

ii) Veriication of facts and igures by the Executive

Oficer primarily concerned with Para and submission

of remarks to FA & CAO = 3 weeks.

iii) Associate Accounts vetting and scrutinize theremarks of Executive = 1 week.

iv) Scrutiny and to obtain GM’s approval = 1 week.

v) Finalisation of the reply and to obtain Railway Board’s

approval and forwarding to Railway Administration

remarks to Principal Director of Audit = 3 weeks.

vi) Discussion with PDA including correspondence, if anyshould be completed within the over all period of 8

weeks.

As the overall limit of 8 weeks cannot, at any rate, be exceeded,

it is necessary that the queries from Railway Board should be

attended to on ‘TOP PRIORITY’ basis.

18. ACCOUNTS INSPECTION REPORTS: - The action required to be taken after the inspection is over

has been indicated. After the discussion of the preliminary

report with the Head of Ofice is completed, the inspection

report should be prepared embodying all irregularities

and objection for which no satisfactory explanations were

forthcoming during the discussion. The inspection report

should be issued inally as soon as possible after the return ofthe Inspection party from the inspection. It should be noted

that issue of the report in respect of Main ofice, which was

inspected, should not be delayed just because the inspection

of subordinate is not completed.

19. HOW INSPECTION REPORT IS PREPARED:

The reports should be prepared in two parts i.e., Part I andPart II. These should again be subdivided into nonPersonnel

and Personnel. Particular care should be taken about the

language and tone of the report. All objections should be

stated in simple and polite terms.



178


PartI: This should contain points of major importance only which

may be held to include objections involving recurring over

payments due to wrong ixation of pay, grant of leave and T.A.

under a wrong set of rules etc. and any other irregularitieswhich are required to be regularised under competent

sanction. The remarks for individual paras should be called

for from the Head of the Ofice Inspected.

Part II: All other items, which have not igured in Part I should be

included in Part II. The disposal of paras in Part II may be

left to the Head of Ofice inspected. He should however, give

suitable remarks as to the action taken by him against eachitem in the report before iling it. The Accounts Oficer should

during his next inspection, review the remarks recorded on

the Executive oficer’s copy of the Part II of the report and

satisfy that suitable action has been taken on the points

raised therein.

Part I of the Inspection Report should be prepared in Triplicate.

One copy will be retained in the Accounts Ofice as Ofice copyand Two copies sent to the immediate superior of the Oficer

whose ofice was inspected, with a request that one copy may

be forwarded to the Head of the Ofice Inspected for remarks.

In the case of Divisional Ofice, all Part I Inspection Reports

should be sent to the divisional oficers personally. The oficer

whose ofice was inspected should return one copy with as

complete replies as possible through his immediate superiorto the Inspecting Oficer. Before forwarding the replies, the

immediate superior should satisfy that they are correct and

complete and where necessary should have them amended

or ampliied to avoid further correspondence. The remarks

so received should be scrutinised in the Accounts Ofice and

further action that may be necessary taken under the orders

of the Accounts Oficer. If any cases of serious irregularitiescome to light in the disposal of Part I of the Inspection

Reports the details thereof should be entered in the “Register

of Serious Irregularities” and the progress of their disposal

carefully watched.



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Inspection Section

Part II of the Inspection Report should be made out in

duplicate. One copy should be retained as ofice copy and

other copy sent direct to the oficerincharge of the ofice

inspected with the request that the irregularities pointedtherein may be regularised and the recurrence of such

irregularities guarded against. Any items of objection, which

has a bearing on the work of the Accounts ofice, should be

noted down and pursued with the sections concerned.

20. PROCEDuRE FOR TESTChECk:

The Test check should, apart from veriication andthorough examination of facts and igures embodied in



understand their duties and rules governing them and do

the work allotted to them diligently and whether there

is any tendency to do the work casually. Test check should

particularly be conducted at least once in a month by SO andall oficers. The test checks should not be of routine nature

rather they should focus on system improvement, procedural

lacuna and lapses. The underlying idea should be eficient

disposal without any violation of rules and procedures. The

checks should also relect the updated skills of the oficer.

- [PARA 803 A1]

21. RECORDinG OF RESuLTS OF TEST ChECk:


a manuscript register in the form given below:-

S

NO.

Item of

work

test

checked

Extent of

Test check

prescribed

Particulars

of vouchers

elected for

test check

Name of the SO/

SSO (A) who had

test checked the

item

Result

of Test

check

Whether the dis-

crepancy in col.6

has been pointed

out by the super-

visory staff

1 2 3 4 5 6 7


oficial; the test check is required to be made in accordance




180





the dated initial of the oficial conducting the test check. The exact nature of the discrepancy noticed should be briely









test check.

22. TEST ChECk OF REGiSTERS:


different registers by the Gazetted Oficers. The intervalsat which different registers maintained in Accounts Ofices

should be put up for inspection by Oficers.

23. PERiODiCiTy OF SuBMiSSiOn OF TEST ChECk OF

REGISTER TO OFFICERS:



test check, date on which put up and the date reviewed by theOficer concerned. The test check registers of Section Oficers

and Senior Section Oficers should be put up to the Branch

Oficer on the 10th of each month indicating the test check

done on the work of clerk in the preceding month for review

and orders, where necessary, by the Branch Oficers.



Chapter 6

STOCK VERIFICATION

The object of the stock veriication by the Accounts

department is to ensure that the said material accord with

the description and speciication and the balances appearing

in the books and excess or deiciency, if any, noticed on such

veriication are properly investigated and accounted for. It is

to ensure that book balance and ground balance tallies and

they are properly maintained. During the veriication of anyunit and stock veriier has to ensure that

• Every item is veriied after proper counting,

weighment, and measurement in presence of

responsible representative, subordinate or ward

keeper or stock holder himself.

• No items and tally books are left without veriication.

• No unaccounted stocks are lying at Depot, ward

and ofice of the subordinates. In case unaccounted

stock is found, reason has been recorded by the stock

holder.

• Weighing machine used for weighment, is being

checked before veriication.

• Proper arrangement exists for the safe custody ofmaterials.

• Suitable measures exist against loss due to pilferage,

ire and deterioration.

• The godown loors are cemented and, in cases where

such loorings do not exist, the stacking is not done on

the ground but on platforms made of unserviceablerails and sleepers.

• Is the stacking of heavy materials done in racks and

lines?

181



182


• Are tools and petty items of consumable stores kept

in lock and key.

• Materials of every day use such as soap, matches,

towels, dusters etc. are kept under lock and key.

• A proper locking arrangement exists for the Depot.

• Fire extinguishers and other ire protection

arrangements are handy in the depots.

• Inlammable stores such as petrol and oil lubricants

(POL)are not kept in close proximity to consumable

items such as waste cotton, sleepers, wooden ittingsetc.

• Whether material is being issued strictly on “First in

First out basis” or not.

2) PROCEDURE FOR VERIFICATION

While veriication of store following steps are to be followed:

i. Ensure that items for which veriication is to be done,

is presented in full quantity under certiication by the

custodian with nothing left to be produced.

ii. Complete veriication of ground balance and get it

certiied by witnessing oficial before analysis of

book balances is undertaken.

iii. Ensure that the labour staff allotted for veriication issuficient and that the scale, crane and other facilities

are available for veriication, wherever necessary.

iv. Check up the scale to ensure that it is in proper

working condition.

v. Ensure that stores are kept under proper bins and

racks with duly painted P.L. Nos. on them to facilitate

easy identiication of stores in stock.

vi. Have a complete survey of the ward to ensure that

the stores taken out of the bins/racks and disturbed

stacks are put back in their proper places.



183

Stock Verification

vii. Ensure that a stores representative is available to

witness the stock veriication.

viii. Obtain all bin cards/tally cards of the period to be

veriied from the ward on the date of veriication.

ix. Ensure that all the receipt and issues postings are

upto date on the date of veriication.

x. Ensure that as regards the computerized items, the

receipt and issue vouchers relating to the date of

veriication are not posted on the bin cards till the

veriication results are posted. It should also be seen

that the bin card balance is tallying with Transaction

Register (TR) of the previous month.

2.1) BASIS OF VERIFICATION:

The veriication of stores either held in a stores Depot or with

executive subordinate ofice should invariably be conducted

with reference to the annual programme approved by the

FA&CAO. The veriication of units not contemplated in the

annual programme and also special veriication of stores with

the custodian at the request of the controlling oficer may

also be carried out with the prior approval of the FA&CAO

provided suficient man-days are available to accommodate

such special checks and the regular annual programme is not

affected.

3) Duties of the Inspectors of Stores Accounts (S-3205 to

3208)

Ordinarily the duties of ISAs on veriication work are of

supervisory in nature over the functioning of ASV. However

in special circumstances, stock veriication may also be

entrusted to them to bring qualitative improvements. Apart

from this ISAs should undertake the following activities:

i) Collect information regarding formation of new units/

new PLs from all the departments before preparing

the annual Stock Veriication Programme.



184


ii) Prepare Programme of veriication work for each

inancial year for stores Depots/other units well

before commencement of the inancial year and

submit the same to FA&CAO for approval. iii) Ensure that realistic man days are budgeted for

veriication of each and every so that wastage of

man-hours due to non-availability of helping staff is

minimized.

iv) Distribute the Programme approved for the inancial

year in such a way that the Programme will be

completed as per schedule.

v) ISA have to check related documents, records and

measurement books of store at store depots, ofices

stations and workshops.

vi) Seize any document/record initial books of

stockholder required for further investigations.

vii) Carry out periodical test check of stock veriiers asauthorized by the Stores Accounts Oficers to ensure

quality of veriication.

viii) Prepare and submit monthly progress report both

in respect of veriication work done (May days) and

disposal of stock sheets to the Hqrs. Ofice by ISAs at

Depots/IS divisions.

ix) Conduct surprise check /Intensive checks/special

checks with special attention to unearthing serious

irregularities at places where the transactions are

heavy and make out reports of irregularities thereon

and follow up until appropriate action is taken up by

the concerned authorities.

x) Attend to scrutiny and disposal of Stock Sheets /Narrative Reports by close monitoring and investigate

into heavy discrepancies revealed either in stock

veriication or as a result of review of accounts. Co-

Coordinating ISA of the veriication unit must ensure

optimal output of ISAs/ASVs working with him.



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Stock Verification

xi) Weekly Diaries

xii) Field Book

xiii) Record Keeping should be proper , safe and secure.

Apart from the above duties the following role of ISA is also

mentioned below:-

(I) REVIEWS /OVERHAULING OF ACCOUNTS

The most important role of ISA which he has to play in

controlling of inventory and review of overhauling of

accounts. In case the stock veriication programmes by ASVs

exceeds 20 days the overhauling of accounts will be done by

ISAs to see:-

a) Check of issues as per annual consumptions in relation

with demand and stocking.

b) Reasons for over stocking if any.

c) Reasons for an item becoming non moving.

d) A detailed check of idling assets.

e) Review of surplus stores.

f) Review of item being purchased regularly on non

stock basis.

g) Review of imprest stores to check the cases of revision

as per trend of consumption.

h) Review of local purchases.

i) Review of issues and corresponding release of items

as per sanction estimate in case of section work and

also in cases of other work chargeable to revenue.

j) Review of accounts of stores delivery vans.

In addition to it ISAs to carry out complete review on

emergency purchases, AAC, pending dues in relation to stockposition and also he has to see the issues as irst in irst out

(FIFO) system to avoid any deterioration of store. He should

also have a proper check on system of proper storing of items

of common use and ire prone.



186


(II) CAPITAL STORES

Reviving section check of store depot are to be carried out by

ISA each month to see that:-

a) There is no item left unconnected.

b) Accountal is done regularly.

c) There is no item where documents have been received

but material not received.

d) Regular clearance of stores in transit , depot transfers

of purchase.

e) Regular clearance of rejected stores within time

and recovery of advance payment and other dues as

inspection charges, storing and supervision charges

if any, if leviable.

f) Check on system of inspection to see in cases of delay

in accountal on account of late inspections.

g) All pending claim cases to ind out its proper reason. h) The system of station clearance check on demurrage

and wharfage charges with entries made in progress

register of depot.

i) The system of storing of materials and regular issues

towards after speedy accountal.

(III) SV SHEETS AND NARRATIVE REPORTS

ISAs are responsible for proper dealing with SV sheets and

narrative reports, continuous chasing with divisional oficers

/stores oficers and store holders is also required to be done.

more care has to be taken in dealing with SV sheets and

Narrative reports which involved in:-

A. Theft cases.

B. Court cases.

C. Claim cases.



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Stock Verification

(IV) SURPRISE CHECK

It is a vital role of ISA to carry out surprise check in consultation

with Accounts oficer at stores depot ,stores holder on shed,

workshops , stations, ofices etc. For carrying out surprisecheck no advance information is given and before carrying

out the surprise check items may be selected and detailed

examination of system of accountal issues, storing, disposal,

together with ground balance to check net deiciencies of

the item is to be done. ISA should carry out surprise check

on deliveries being witness by ASV and a report should be

submitted to Accounts Oficer for the work done.

(V) Lot Inspection

The scrap material after declared as surplus by store depots

and before auction each lot is required to be inspected by ISA

as without which no material is generally allowed to be sold.

ISA should carry out lot inspection in detailsand with minute

observations. Mainly following points are to be examined: i) Proper sanction.

ii) Proper accountal.

iii) Proper description.

iv) Proper location.

v) Proper quantity.

vi) Proper approach. In case of lot inspection of condemned rolling stock like

wagons, coaches and locos the aspect of restricted items is

to be seen very carefully while assessing the approximate

auctionable weight of the item.

Lot inspection of scrap rails of different rail section is done by

taking measurement of each rails as mentioned in sanctioned

SS-11 and sectional weight of lot of rails is arrived at `with 5% provision are allowed for wear and tear allowed in case of

scrap rails other than 115lb/60 kg. and 52 kg. The delivery

of rails other than stores depots are given on sectional

weightment basis.



188


(VI) AUCTION SALE

Another important role of ISA is witnessing auction sale.

Before start of auction sale ISA should check the auction

catalogue very carefully. It should be ensued that all lots putup for auction sale have been inspected by respective ISA

of the unit and have been declared ok for sale. If lots have

been declared as withdrawn by ISA it is to be seen that all

such lots have been withdrawn from auction sale. ISA should

carry out a check on entry fees deposited by the bidders in

the acceptable form and each bidder have been provided with

a token thereof . During the course of auction sale ISA should remain more

vigilant and should watch that:-

(a) All bidders have proper token in support of entry

fees.

(b) The system of auction adopted by auctioneer is as per

rule.

(c) The bids are being obtained lot wise and unnecessarily

combined bids of two or more lots are not taken

without being bid rejected earlier.

(d) Immediately after the highest bid is accepted by the

depot oficer auctioneer should declare the name

of purchaser and he should issue a slip showing lot

no. ,quantity, rate ,name of the purchaser etc. if any

change or addition has been done by auctioneer the

matter should be brought to the notice of supervision

oficer.

(e) During the course of auction ISA should have closed

watch on ring formation among the bidders and if any

such event is noticed he should bring it to the notice of

depot oficer and accounts oficer concerned. (f) The bids are not accepted abnormally lower than last

auction rates, if such occurrence is noticed the matter

should be brought to the notice of accounts oficer

who will further check from list of reserve price

supplied by depot oficer after auction.



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Stock Verification

After the auction sale is over ISA is required to do the following

work:

a) Check bid sheets, bid auction catalogue and special

announcements.

b) Check of proper deposition of EMD with Railway

Account .

c) Check of SA-6 forms.

d) Preparation of auction sale report showing the details

of auction held.

(VII) ACCOUNTAL OF SALE ISSUE NOTES BY ISA

The main reasons for lying heavy credit balances in sale

suspense due to non accountal of sale issue notes. For

minimizing of such balances, ISA should have a manuscript

register with them showing the details of sold lots delivered.

In this register a column should be made showing the date

of continuity no. of sale issue note which will help theadministration in minimizing credit balances.

(VIII) SHOP FLOOR INVENTORY

In the major workshops and sheds the aspect of shop loor

inventory is of very important nature. Shop loor inventory

highlights the following facts

a) Over stocking of stock and non stock items onshop loor thus blocking the railway revenue on

unproductive investments.

b) Excess drawal of materials than MUF ixed up.

c) Trend of consumption in relation with drawal and out

put.

d) Disposal of scrap or released items. e) Wrong drawal of materials.

In addition ISA is supposed to carry out check on idling

machines make and buy comparison in case of shop

manufactured items including revision of rates , which will



190


help the administration in ield of better managerial control

on inventories.

3.1) Dtes of Accot Stoc Verer. Stock veriiers are required to verify the ground balance by

actual counting/weight or measurement as the case may be

of the following:

a) Stores in the custody of stores department.

b) Imprest or surplus materials in the custody of sub-

ordinates on line.

c) Material-at-site of the work.

d) Charged off materials in the workshops, sheds and

elsewhere generally as far as they are susceptible to

check.

e) Timber in the Carriage Workshops.

f) Consumables

g) Tools and plant, dead stock in the custody ofsubordinates and ofices of all departments of the

Railway.

h) Fixtures and ittings of electrical items at various

service Buildings.

i) Surprise and special veriication of stores as per

instruction of the administration.

In addition to these, ASV’s are assigned the duties of

witnessing the deliveries of scrap stores sold in Auction etc.

The results of the stock veriication are compared with the

ledgers and the deiciencies, if any are brought out in the

SV sheet. The major irregularities, i.e. procedural lapses,

wrong classiication, bad condition of storage, damages,

etc. are brought out in the form of Narrative Report. One

copy of SV sheet / Narrative Report is submitted by ASV to

the stockholder and his controlling oficer with a request to

offer the remark/veriication on the deiciencies. Similarly

one copy is submitted to SR DFM along with the completion

certiicate and completion report.



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Stock Verification

4) ACCOUNTAL AND DISPOSAL OF SCRAP MATERIAL

The materials of different kinds which are no longer required

for the purpose for which they were procured by consuming

department on Railways are called scrap items.

4.1) Sources of arising of scrap

1. Railway workshops.

2. P. Way scrap.

3. Condemned Rolling stock.

4. Melting scrap from various sources. 5. Misc. scraps from various stores holders.

Each item of scrap sent to the nominated stores depot will be

supported with relevant DS-8 Note showing PL NO., Name of

the depot , Date, description and quantity of material together

with the remarks of condemnation recorded on DS-8 note and

one copy is returned to sender for his records. In stores depot

each DS-8 note is accounted for by giving continuity number.

ISA’s during their visit to stores depot. should check the

proper accountal of DS-8 Note. The ferrous scraps received

in depots are veriied by ISA/ASV and therefore it has been

exempted from stock veriication. Hence there should not be

any item left unaccounted. So far as P. Way scrap is concerned,

during the course of lot inspection to be close by ISA, it should

be ensured that proper DS-8 Notes exists.

4.2) Disposal of Scrap

Each kind of stores duly surveyed by survey committees(other

than those items exempted from survey) and sanctioned

by competent authority including condemned rolling stock

where BUOs have been received are put up for auction sale.

After auction sale SA6 is prepared by stores depot with the

help of particulars mentioned by auctioneer in Bid sheet.

The purchaser will deposit Earnest Money to the auctioneer

immediately after the acceptance of his Bid and turns up

to auctioneer by depositing balance amount and VAT. The



192


auctioneer issues D.O. and production of DO to auctioning

oficer a letter for delivery is issued. The delivery is given by

stores holder in the presence of ASV and a representative of

RPF. Sale issue notes are prepared except in case of rollingstock and heavy machineries where accountal is with depot

oficer concerned and thus disposal of scrap is done.

5) CONTROL AND SUPERVISION

The ISAs and ASVs attached to units are administratively

controlled and supervised by; the concerned SR.DFM.

However, they are under professional control of FA&CAO /Stores.

5.1) Ma steps of Vercato

i) Voucher collection.

ii) Physical veriication.

iii) Voucher check in respect of receipts and issues and

checking of balancing errors.

iv) Preparation of stock veriication sheets duly

comparing the inventory summary (ground balance)

with the veriied ledger balances.

v) Narrative report on procedural irregularities.

5.2) Freqec of Vercato The Stores, whether in a Stores Depot or with a department

should be veriied by Accounts Stock Veriiers as per the

following periodicity:

(3310-S)

SR.

No.

Nature of StoresPeriodicity of

Vercato1. Materials –at-site of works Once in a year

2. Stores with Imprest Holders Once in two years

3. All tools and plantsOnce in three

years



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Stock Verification

4.

All materials in a depot whose accounting is

brought under computerization are veriied

As under :

4.1

Category ‘A’ Items:

All items having an annual usage value of Rs.

35.25 Lakhs

once in six

months.

4.2

Category ‘B’ Items:

All items having an annual usage value of

Rs.4.8 Lakhs and above, but below Rs. 35.25

Lakhs

Once in a year

4.3

Category ‘C’ Items: All items having an annual usage value be-

low

Rs.4.8 Lakhs

Once in two years

4.4

Category ‘D’ Items:

All items that have had no issues for twelve

months and over

Once in two years

5.Provisions in Catering Department,subsidized hostels and hospitals

Once in fourmonths

6.The T&P items and equipments supplied to

catering department, Subsidized hostels etc.Once in a year

7.Dead stock lien T&P items, equipments, etc.

pertaining to Hospital/Running Room

Once in three

years

8. Computer equipments and Hindi BooksOnce in three

years

An annual veriication programme is prepared sensitivity

analysis and based on the above provisions after receipt

of sanctioned to this program from FA&CAO, Sr ISA

(Coordination) will distribute the program stockholder wise

between the ASV’s. ASV’s in turn will verify the physical

balances as compared with the ledgers. The routine physicalveriication of the stock comprises of:

(I) Imprest / surplus material in the custody of

subordinate on line.

(II) Material at site of work.



194


(III) Fuel, coal, HSD oil with loco (Optg and Mech

Department)

(IV) Engg. Plants reserve.

(V) Dead stock.

(VI) Tools and plants.

(VII) K-Oil at stations.

(VIII) Voucher check. (Receipt and issue)

In the ofice of SR. DFM the details of SV sheets / Narrative

Reports are entered in register no 3261/S wherein full details

such as year, stockholder, SV sheet number, Narrative Report

number, date, deiciencies, etc. and their day-to-day progress

is watched by SR ISA (co-ordination). Theremarks/replies of

SV sheets / Narrative Reports received from executives will

be scrutinize by ISA and will be put up to SR DFM for closure,

if acceptable. Otherwise reminder / rejoinder will be issued

for further clariication.

Outstanding SV sheets / Narrative Reports to end of the month

will be brought out in a statement department wise and year

wise, which is the part of the document submitted to HQ. in the

monthly progress report. Similarly the performances of the

ISA’s during the month i.e. lot inspection; test check of ASV’s

special checks, handing over of scrap, etc will be submitted

to HQ. Monthly progress report and monthly performance

report is submitted to HQ before 5th of the following month

through SR DFM.

6) ESTIMATING ANNUAL MAN DAYS REQUIREMENT

Man days should be estimated for a year taking into account

frequency of veriication indicated in the preceding Para

and man-day/hours required per item depending upon its

average balance.

According to the above processor annual stock veriication

program of the division along with the number of man days

required during the year as well as the currency of the post

i.e. ISA/ASV’s will be submitted with the approval of Sr.DFM.



195

Stock Verification

7) MAIN REASONS FOR DIFFERENCE BETWEEN GROUND

AND BOOK BALANCE

Error in posting of receipts and issue vouchers and correct

quantity in the ledger.

a) Calculation/arithmetic errors.

b) Cross issue/ cross postings

c) Omission of postings

d) Posting twice in the same bin card/ ledger/ tally

book/account

e) Error in counting, weighing, at the time of certiication

of receipts and issues

f) Omission in presenting a lot, wrongly kept elsewhere,

for veriication.

g) Presenting an item already issued and debited but not

dispatched to the party for veriication

h) Pilferage or fraud

i) Defective weighing machines incorrect weighment

j) Wrong issue of one material for another similar

in appearance, which causes shortage of the item

actually issued and excess of item wrongly shown as

issued in the books.

k) Not posting an issue already made, due to said issuenot being posted or being rejected by computer

leading to “shortage”. Similarly, not posting a minus

issue or a receipt will show an excess.

l) Loss of materials in the ward for any reason including

over lifting will show shortage.

m) Actually issuing quantity less than shown on an issue

note will show an excess.

n) Items dificult to issue in precise quantities like

frequent issues on weight or very large numbers or

items issued in running lengths can result in excess

or shortage ground balances.



196


8) EXPLANATION OF DEFICIENCIES

SR.

NO

CAUSES OF DEFICIENCY PARTICULERS TO BE FURNISHED

1 Materials issued but not

Accounted for

Party ,voucher no, date, quantity and

why issue was not accounted for

2 Due to cross issues Relevant entry noticed under other

account having similar items, S.V.

sheet folio item no brief description

and size surplus quantity recorded

3 Due to luctuation ofweather

Date of last veriication and quantitythen veriied, quantity of material

subsequently received and issued &

shrinkage allowed

4 Material lost in transit Why the papers were not shown to

the ASV or for inclusion in the veriied

balance as per Para 1228-s, what

action has since been taken to inalizethe loss

5 Materials escaping

veriication

Particulars of quantity, where it was

lying and how it escaped veriication.

How the material has since been

taken to account through department

veriication

6 Loss due to theft, ire etc Same as for item(4) above

7 Material sent for

metallurgical test to be

done by CMT

------do----

8 Material classiied under

a lower class by the stock

veriier due to damage or

condition of the material.

Quantity veriied as surplus under

hand second (or scrap) with

particulars of AV sheet folio item

numbers

9 Other issues not covered

by the above

Suitable remarks depending upon the

nature of the case



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Stock Verification

10 Causes of deiciency not

known

Defect in procedure, party at

fault, action taken to avoid similar

discrepancy in future including

recovery in part or whole of the costof material found missing due to

neglect (Para 3263-E )

Note: Corrective entries are to be made under competent sanction

& got veriied by ISA before stock sheet can be closed

9) EXPLANATIONS FOR EXCESS

S r .

No

Cause of

Decec

Particulars to be furnished

1 Material received

but not taken to

account

Party sending the material, voucher number

, date, quantity , how accountal was over

looked

2 Materials subjected

to previous

luctuations ofweather

Date and quantity in stock during the

veriication; quantity of material subsequently

received & allowed shrinkage etc.

3 Due to cross issued Relevant entry shown under other similar

items

4 Materials issued

but not removed by

indenter

Party, voucher number;date;quantity,why was

the material not removed, why adjustment

D/note was not prepared to write back the

issues

5 Error inveriication

Description and quantity of the materialis correctly included in the veriication,

reference to folio and item nos,quantity

of shortages adjusted against such items.

Has the error since been rectiied through

departmental veriication ?

6 Other causes Suitable remarks depending upon nature of

case

7 Causes of surplus

not known

Defect in procedure, party at fault; action

taken to avoid similar discrepancies in future

Note : In all the cases corrective entries should be made and got

certiied by ISA with suitable remarks before the stock sheet

could be recommended for closed.



198


10) OBSERVATIONS TO BE MADE DURING STOCK

VERIFICATION OF ENGINEERING DEPARTMENT

a) Non-accountal of materials received from contractors

as well as from other sources and unauthorizedtransfer of materials.

b) Failure to account for released materials fully

adopting lesser weights for released materials.

c) Unauthorized issues of material.

d) Issue transactions not vouched properly.

e) Excess issues of material. f) Failure to carry forward closing balances.

g) Non- admission of stock veriication consecutively for

several years on various pretexts.

11) OBSERVATIONS TO BE MADE DURING STOCK

VERIFICATION OF MECH. DEPARTMENT

i) Non-Accountal of costly materials like paints, sheetsand other parts and release.

ii) Over-drawl of issue transactions by the Shop/Shed to

end of inancial year.

iii) Mixing up of new items with serviceable/released

items and mixing up of serviceable released with

unserviceable items to cover deiciencies in stock.

iv) Fictitious issue/receipt transactions.

v) Non-Accountal of Imprest stores.

vi) Non-Accountal of records of diesel oil pump sheds

and check of low meter.

vii) Charging- off of costly oils from ledgers without any

vouchers.

viii) Substitution of costly item of woolen blankets with

cheap items.

ix) Charging Off axle oil/K. oil/cotton wastage periodically

without actually issuing the said materials.

x) Non-Accountal of huge quantity of HSD oil.



199

Stock Verification

12) MONTHLY PROGRESS REPORT:

a) At the end of each month, the Accounts Stock Veriier

(ASV) should compile and submit the Monthly

Progress Report from the weekly Diaries in theprescribed form duly illing in all the columns

provided in the format.

b) In carrying out their work as per programme, the

accounts stock veriiers should note the frequency

of veriication of the various categories of stores

and should undertake checks only if they are due for

veriication during the year. If, on visiting the stations,the checks are found not due or a store holder is not

existing, etc., the accounts Oficer (stores) should be

advised accordingly with necessary details and other

checks at the station to be taken up if due, or he should

proceed to the next station of veriication, where

minimum loss of time is involved in such journey.

c) The ASV may come across in course of their visit,existence of any new stock holder(s) at these stations.

The particulars of such stock holders should be

noted and advised to the Stores Accounts Oficer for

necessary action.

d) The Stock Veriiers should normally complete the

checks allotted to them within the allotted number

of days provided for each checks. The number of daysallowed for each check is based on the time actual

taken in the previous years and also the number

of items held by the stock holder as advised by the

departmental oficer. Wherever the ASV feels that he

would not be able to complete a given check within

the allotted time and he should submit necessary

justiication well in advance of the completion of

the check, for extension of time, for veriication and

obtain sanction of the Accounts Oficer for exceeding

the number of man-days provided for the check. The

extension requested for, should normally be on the

following lines:-



200


i) Increase in the number of items held over the

last veriication (the number of items actually

increased should be clearly indicated).

ii) Increase in the stock held over the lastveriication (the quantities actually

iii) Increased should be clearly speciied.

iv) Increase in the number of works over the last

veriication (the increase should be clearly

speciied).

v) Increase in the length of the section held bythe stockholder over the last

vi) Veriication. (It should be clearly indicated as

to what extent there would be increase in the

veriication work).

vii) Any other speciic cause/causes due to which

veriication programme is Likely to be

affected warranting extension.

e) Stock veriication of pilferable and consumable items

like Kerosene, Paints etc., should be taken irst before

assessment. On visiting a unit for veriication, ASV’s

should irst assess the quantum of work involved,

arrangement of materials, availability of labour,

availability of weighing facilities, etc. and examine

whether the check can be completed within the

time allotted and submit justiication for extension

of man-days wherever considered necessary, on the

lines suggested above, well in advance of the expiry

of the time allotted for the check in question.

f) When Stock Veriier attends the Hqrs. ofice on the

last day of every month for receiving payment, heshould submit the following returns to the ISA

concerned without fail for review :-

I. Completion documents including Stock sheets

and Narrative Reports



201

Stock Verification

II. Progress report for the month.

III. Field Book.

IV. T.A. Journal.

V. Special reports

13) TEST CHECK:

During the occasion of their test check of the stock veriier’s

work ISA should examine the following aspects and comment

upon the same in their report.

a) Attendance of the S.V. and the time of arrival atvenue of veriication.

b) Whether the books have been closed as required

herein.

c) Whether the Field Book has been maintained in the

required manner.

d) Whether initials of the custodian have been obtained

against the relevant item in the Field Book in respect

of inventory taken up to date preceding the date of

ISA’s test-check.

e) The stock of selected items veriied by the stock

veriier on the date preceding the date of test check

should be re-veriied in the presence of the S.V. and

custodian and submit a report in case of disagreement,after updating for subsequent receipts and issues

should be submitted.

f) The ISA may also carry out surprise check of one or

two key items on such an occasion and scrutinize

the accounts maintained for the items so selected

from the date of last stock veriication to the date

of commencement of the surprise veriication andsubmit the stock sheet with special report, if any.



202


14) EXPEDITIOUS FINALISATION OF STOCK SHEET AND

RECOVERY LOSSES

A JPO has been issued on WCR on the subject which covers

all important aspect for disposal of stock sheets. The JPO isreproduced as under:

• As per board’s order ,stock sheets should invariably

be settled within a period of six months.

• Delay in inalization of stock sheets results in

attendant problems, viz- non availability of records,

missing stock sheets, retirement of staff prima facie

responsible etc.

14.1 PROCEDURE

14.1.1 Details on Stock Sheets While issuing a stock

sheet for any stockholder, the stockholder’s name,

designation, and date of superannuation shall be

prominently mentioned on top of the stock sheet.

14.1.2 Action by Stockholder The stockholder shall

scrutinize the stock sheet immediately on receipt and

submit his remarks explaining the shortage/excess,

etc to his controlling oficer within a period of 45

days.

14.1.3 Acto b Cotrollg Ofcer The controlling

oficer would scrutinize the remarks submittedby stockholder and forward the same to his branch

oficer in divisions and depot oficer in sheds and

workshops , as the case may be , within 20 days of

receipt.

14.1.4 The branch oficer/ depot oficer will submit it within

next 15 days to the concerned accounts oficer, after

due scrutiny, duly explaining the shortage/excess,etc.

14.1.5 However, if remarks furnished by the stockholder

explaining the shortage / excess are not found

satisfactory by the controlling oficer, he will himself



203

Stock Verification

investigate the matter or through his nominated

person and furnish the remarks through his branch

oficer or the oficer in the workshop /shed /

construction unit to the account oficer concernedwithin a period of 80 days from the issue of stock

sheet indicating the responsibility ixed for shortage/

excess.

14.1.6 In case the stockholder is under orders of transfer,

care shall be taken to obtain his remarks for any

outstanding stock sheet before relieving him from the

post. Proper handing over and taking over of storesbetween the relieved and the relieving stockholder

shall be ensured and stock sheets outstanding shall

be speciically mentioned in the handing over/taking

over.

14.1.7 Controlling oficer shall bring the JPO to the notice

of the stockholder at the time of taking over of the

charges.

14.1.8 Action in the event of unsatisfactory explanation

by the Stockholder In case of shortage pointed

out in the stock sheet which could not be explained

satisfactorily within speciied time, the amount

shall be recovered from the stockholder/staff

held responsible by the controlling oficer after

giving him ‘ show cause’ notice and considering his

representation. The employee shall be expected to

give his reply within a period of 15 days from the

issue of notice. The reply, if received in time, shall be

expected to give his reply within a period of 15 days

from the issue of notice. The reply , if received in time ,

shall be considered within a overall period of 30 days

from the issue of the said ‘ show cause’ notice. If , no

reply is , received from the employee within 15 days

of time of ‘ show cause’ notice or the reply submitted

is not satisfactory than the recovery of amount shall

be initiated with the permission of respective branch



204


oficer in the division and concerned JAG/SAG oficer

in other units, the decision to recover the amount will

be communicated to the employee by the controlling

oficer and recovery started. 14.1.9 In Case of unexplained excess, suitable disciplinary

action will be initiated.

14.1.10 Acto b Accots Ofcer The accounts oficer shall

ensure complete scrutiny of the reply so as to be able

to either issue ‘ closure advice’ or seek supplementary

clariications within a period of 10 days.

14.1.11 While seeking supplementary clariications, the

accounts oficer shall make endeavour to raise

all points of doubt, on the basis of the available

information, at the irst instance. He shall take care to

remove possibility of unnecessary correspondence.

14.1.12 On receipt of a reply by way of clariication on the

doubts raised, account oficer shall check the same forcompleteness, accuracy and relevance.

14.1.13 He shall seek any further clariication only once more

and only to clarify any further information submitted

by way of irst clariication.

14.1.14 Therefore, in case the reply and clariication are

acceptable as satisfactory, the accounts oficer shall

issue a ‘recovery advice’ (with the permission ofnot less than a JAG oficer of Accounts department)

against the defaulting Stockholder to the branch

oficer of the stockholder, within 15 days.

14.1.15 Recovery procedure in case of established

shortage Action taken against the staff held

responsible as well as amount recovered / to recover

shall be indicated in the remarks column of the stock

sheet.

14.1.16 The controlling oficer shall advise the amount to

be recovered to the concerned pay sheet preparing

and passing units which shall ensure recovery from



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Stock Verification

salary / other dues of the staff held responsible for

loss. The controlling oficer shall ensure that the

recovery process is started immediately, in no case

later than one salary cycle after the receipt of the‘recovery advice’.

14.1.17 A copy of the deduction list after completion of

recovery will also be sent by the concerned personnel

oficer to concerned accounts oficer, who had issued

the stock sheet, for his information and further

necessary action.

14.1.19 In cases where the controlling oficer is also thepersonnel oficer, he shall ensure the same action and

recovery in suitable installment will be made.

14.1.20 The concerned bill preparing unit shall maintain a

register indicating amount due for recovery, amount

recovered and balance recoverable amount.

14.1.21 In case of transfer of the staff, the amount outstanding

for recovery if decided, else details of stock sheet

will be incorporated in the last pay certiicate, and

the details of recovery made shall be advised to the

parent unit by the new unit which the employee has

been transferred.

14.1.22 Any recovery outstanding on account of stock sheets

will be included in the list of dues outstanding afiantsthe employee at the time of his retirement to ensure

the recovery being made from the settlement dues.

14.1.23 The account unit which has issued the stock sheet will

advise the controlling oficer, personnel and accounts

oficers concerned about the stock sheet outstanding

against a stockholder/staff held responsible with the

details of unexplained shortages, six (6) months inadvance of the superannuation of the stockholder/

staff held responsible so as to ensure expeditious

inalization of the stock sheets and recovery of the

amount of unexplained shortages from the settlement

dues to the employee.



206


14.1.24 In case of voluntary retirement /death/ medical

unitness,etc, it shall be responsibility of the

controlling oficer to advise the personnel and

accounts oficers concerned for making recoveryfrom the settlement dues , the inal settlement shall

not be made without ‘ no due certiicate’ from all

three above.

15 THEFT AND CLAIMS CASES

15.1 Action expected from the Stockholder in the case of

theft/misappropriation/fraud 15.1.1 Those cases in which stock sheets were

issued on account of theft/misappropriation

/ fraud, the stockholder should immediately,

after due veriication, make out a written

report ( FIR) giving facts of incidents , place,

date , time of occurrence, quantity and value

of railway property stolen /misappropriated, names and suspected persons, if known and

lodge an FIR with the concerned GRP/CITY/

LOCAL police station with the help of post

in charge/RPF without any delay. One copy

of the written report should be given to post

Incharge/ RPF having jurisdiction.

Post Incharge /RPF will act as bridge betweenRailway Authority concerned and GRP /CITY

police and will assist in getting the case (FIR)

registered under speciic section of LAW by

GRP/CITY police. A copy of the FIR and case

reference will be given by the complainant

to post incharge/ RPF for record and

reference into the case, so that liaison may bemaintained by RPF with the concerned GRP/

LOCAL POLICE. Post incharge will co-ordinate

with the city police station and will assist the

Railway Authority concerned in getting a



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Stock Verification

copy of the FIR with case reference etc. The

progress of the case will be collected by the

complaint with the assistance from RPF.

15.1.2 The stockholder will submit a copy of theFIR, along with case reference etc, to his

controlling oficer. Post Incharge / RPF will

also submit his report to his Controlling

Oficer and co-ordinate with the GRP Post /

Local Police to obtain progress report etc.

15.1.3 Where a speciic case has been lodged under

IPC sections / other acts the stockholder

controlling oficer will ensure the attendance

of departmental witness for early inalization

from time to time with Post Incharge/ RPF to

know about the progress of the case.

15.1.4 The controlling oficer of the stockholder will

liaise from time to time with SR DSC/RPF

having jurisdiction for early inalization of

police case in the court of law.

15.2 Action expected from the Stockholder in the case of

claims lodged with the Commercial Department

15.2.1 In case of stock sheets where claim has been

lodged with CCM/CCO a copy of the claim case

should be marked to the accounts ofice stockveriication cell.

15.2.2 The controlling oficer shall pursue

the inalization of the case with claims

department.

15.2.3 The claims department should inalize these

cases within a maximum period of 6 months

from date of lodging of claim and advise the

controlling oficer about inalization of claim

case.



208


16) TIME SCHEDULE FOR DISPOSAL OF STOCK SHEET

16.1 All oficers/ staff dealing with the stock sheets

shall ensure expeditious clearance of the stock

sheets within a maximum period of ive months andrecovery of losses pointed out in the stock sheet is to

be ensured.

16.2 The calendar based on the the above procedure as

given in the annexure should be strictly followed.

17) MONITORING OF STOCK SHEETS

17.1 Status of outstanding stock sheets may be made part of

the PCDO to ensure a close watch on a monthly basis.

17.2 Necessary records shall be maintained for proper

documentation. Stock sheets over three month old

should be taken up on the agenda of monthly meetings

at ADRM/ Unit heads level and target should be ixed

for their inalization.

(Authority DYFA&CAO/JBP Letter no, HQ/AC/SV/Policy Dtd.

18-12-2008)



Chapter 7

ESTABLISHMENT SECTION

CHECKS TO BE EXERCISED IN VARIOUS ESTABLISHEMENT

CLAIMS

The main internal checks summarized in the following

paragraphs are illustrative only and not exhaustive.

INTERNAL CHECK OF ESTABLISHMENT CLAIMS

The check exercised by Accounts Oficers on the inancial

transactions of the Railway on behalf of the Railway

Administration is called internal check. Unless an exception

is specially permitted in any particular case or transaction,

whether relating to receipts or expenditure, it should be

checked cent percent and no transaction should be brought

into account before they have been completely checked.

Internal check is carried out both under pre-check and post-

check system, depending on the transactions.

[ 801 A1]

1) PRELIMINARY CHECK ON THE PAY BILLS

In the computerized pay roll the CO6 which is a mark or receipt

of bill in Accounts ofice, is system generated. The deduction

from pay bill like HBA, PF etc. also taken care of by the

system and the recoveries are transferred to the ledger of the

employees automatically. The most important authentication

for passing of bill is CO7 where enfacement is signed by SO /

ADFM or other Accounts oficer as per delegation. Generally

checks are carried out at three stages in the Accounts ofice

i.e., AA, SO and Assistant oficer. Section oficer is a key

stage of scrutiny and he is a supervisor who keeps the policy

iles with him. He is responsible for application of rules and

regulations and is responsible to provide guidance to the

subordinate staff. The SO is also responsible for initial test

checks and MIS of the section. He is required to keep Accounts

209



210


oficer apprised of the dificulties faced in the section and

also status of the work.

Similarly, it is also necessary that the latest amendments in

the rules are known to Accounts staff .In case of over payment,Accounts Oficer is competent to recover the amount earliest

possible even by enforcing the recovery.

The following points should be looked into while exercising

preliminary check on pay bills that: -

A. It is in the prescribed form, in original and all columns

are duly completed.

B. The bill is authenticated and the signature on the bill

is genuine and is in ink.

C. The bill is signed by the oficer competent to sign it.

D. It bears a certiicate wherever necessary from

the responsible oficer that the services for which

payment is claimed have actually been rendered.

E. If the proof of the correctness of the claim does not

accompany the bill, a certiicate is furnished that the

claim has been checked with the relevant documents

and found correct.

F. The oficer submitting the bill attests all corrections /

cuttings.

G. All required documents are duly attached with thebill.

H. The certiicates required under rules are recorded in

pay sheets under the signature of a Gazetted Oficer

e.g.:-

i) HRA has not been drawn in respect of

those who are on leave, in excess of what is

admissible.

ii) Certiied that the Railway servants for whom

HRA has been drawn in this bill have not been

provided with any Govt. accommodation.



211

Establishment Section

iii) Certiied that all adjustments required in

respect of pay, allowances, deduction etc. on

account of the assumed attendance adopted

for the immediately preceding wage periodhave been carried out in this bill based on

actuals for the same period and no items have

been left over unadjusted.

iv) It is to be seen that funds are made available

for Special pay sheets/ Pay orders.

I. In case of Regular salary whether scale check has

been done and scale check statement is enclosed.

J. It is to be ensured that regular pay sheet is

accompanied by supporting documents like

Memorandum of differences, Absentee statements,

Recovery statements etc.

K. It is to be seen that NDA, NHA, Overtime, Mileage etc.

claimed in the pay sheet is accompanied with relevantsanctioned statement sanctioned by the competent

authority.

L. It is to be insured that DA, HRA, Transportation

allowance claimed in the pay sheet is properly worked

out and it is as per the current rules.

M. It is to be seen that the Washing Allowances, Nursing

Allowances, Overtime etc. are claimed by the eligiblestaff and certiicate regarding the same is available

on Pay sheets.

N. It is to be ensured that the pay sheets bear necessary

certiicate as mentioned in Para 1205 to 1212 AI .

1.1) DOCUMENTS THAT SHOULD ACCOMPANY THE SALARY

BILLS

The following documents are to be received in Accounts

Ofice along with the salary bills: -

• Memorandum of differences (MOD).



212


• Absentee statements.

• Increment statements. (Gazetted Oficers)

• Rent roll statements for the month of April - Rent

variation statements for the subsequent months for

quarters occupied by Railway servants.

• Electrical energy charges statement (once in six

months), prepared after adjusting the amount

recovered in the preceding Six Months against the

amount liable to be recovered on actual consumption

basis.

• Statement of PF recovery.

• List of workshop debits, stores debits and station

debits recoverable through the pay bills.

• Deduction sheets showing recoveries made through

pay bills on account of:-

i. Railway institute fees and subscription.

ii. Amount due to Railway Co-operative credit

Banks/societies.

iii. Amount due to staff Beneit Fund towards

Loans.

iv. Diet charge & recovery statements.

v. List of premium due on Life Insurance policies

realized from the pay of the insured.

vi. Court attachments.

vii. Income tax schedule.

viii. Statement showing the recoveries of various

advances.

ix. Allocation statements.

x. Certiied summary of T.A., OT, NDA, and other

allowances.

xi. Sanction of competent authority where

provisional payment is authorized.



213


xii. In case an employee is entrusted with custody

of cash or stores, a certiicate should be

furnished to Accounts ofice along with the

settlement bill that they have duly returnedall Govt. property in his charge, the fact

should be indicated in a note attached to the

pay bill. The note should clearly show the

particulars of property not yet handed over

to the Railway and action taken to their value

and the action taken to recover the value of

the same.

1.2) METHOD OF CHECK:

The internal check of pay and allowances charged through

pay bills should be conducted on the basis of the information

given in the Memorandum of differences (MOD) and the list of

absentees, which accompany the bills. If these two statements

are not available the check is to be made on the basis of theinformation given in the bills itself. MOD statement should

invariably accompany the pay sheet.

NOTE: (In regard to Group D staff, the submission of Memorandum

of Differences may be dispensed with in consultation with

the Accounts Oficer and the necessary check should be

applied in his local inspections.) Submission of Memorandum

of Differences in the case of Oficers Pay Bill is not necessary.[1205 A1]

1.3) EXTENT OF CHECK

A complete check should be applied on:

i) The details in the MOD or to the corresponding entries

in the Pay bill itself.

ii) The entries under the column “Gross” pay and

allowances claimed in the bills, to only those who are

affected by the Memorandum of Differences, whether

recorded in the Memorandum of differences or in the

bills.



214


iii) The entries in the other columns of the bills.

iv) The admissibility of increments drawn with the

statement of increments.

v) All calculations and totals

[ 1206- 1212 A1]

2) Detail procedure for check of various other establishment

claims

(2.1) Workman Compensation Claims

Compensation to Railway servants on death or injuries

attributable to and due to Railway service shall be admissible

under the Workmen’s Compensation Act, 1923. In cases

where the Workmen’s Compensation Act is not applicable, the

compensation shall be granted under the Railway Services

Extra-ordinary Pension Rules, as amended from time to time.

[W.C.ACT 1923]

(2.1.1) I.O.D.PART (A) Procedure for IOD cases/Workmen

Compensation Claims:

According to W.C.A., 1923 the employee who is

injured on duty or died while performing his duty

will be entitled for compensation. In Railways certain

category of employees who have lost their earning

capacity partially /permanently or died whileperforming their duty, are covered under this Act. The

employer i.e. Railway is liable to arrange payment of

compensation to the employee or in case of death to

the legal heir of the deceased employee. The category

of employees treated as workman, is as under: -

i) Temp/Casual labor (who attains MRCL

status)/Permanent employee (except staffattached in ofices).

ii) The category of Pay clerk will fall within

the deinition of workman because they, in

the course of their employment, have to do



215


out door work for disbursement of salary at

different points.

iii) Bridge Inspector.

iv) Drivers (loco running staff), Fireman are

treated as workman under section (2) (1) (n)

(i) of WCA.

v) Vendor /waiter attached in catering

Department.

(2.1.2) Types of I.O.D. Cases:

Types of Injured on duty cases and rates of payable

amount are as follows:

A) Temporarily partial disablement –

A half of monthly payment of the sum, equivalent

to 25 % of the monthly wages of injured workman

is payable, for a period of disablement or ive years,

which ever is shorter.

B) Permanent partial disablement –

Under this category the payment should be made as

per injury speciied in part II of Schedule I in W.C.A.

1923 on the basis of certiicate issued by qualiied

medical practitioner.

C) Permanent total disablement –An amount equal to 60% of monthly wages of

workman injured multiplied by relevant factor of

Schedule IV of WCA 1923. Or Rs.60000/-whichever is

more.

D.) Death Cases-

An amount equal to 50% of the monthly wages of thedeceased workman multiplied by relevant factor of

Schedule IV of W.C.A.1923. OR amount of Rs.50000/-

whichever is more.



216


NOTE: Where the monthly wages of workman is more than Rs.2000/-

his monthly wages for the purpose of clause (c) and (d) shall

be deemed to be Rs.2000/- only.

2.1.3) Conditions for payment under W.C.A. (1923).

Railway is liable to pay compensation to the workman or to his

dependant in case of his death or total or partial disablement

for period exceeding three days, but employer shall not

be liable to pay any compensation in respect of injury (not

resulting into death) caused by an accident, which is directly

attributable to – i) The workman having been under the inluence of

drinks or drugs at the time of accident.

ii) The willful disobedience of the workman to an order

expressly given or the rules expressly framed for the

purpose of securing the safety of workman.

iii) The willful removal or disregard by the workman of

any safety guard. Or devices provided for the purpose

of safety to the workman.

The employer should also be liable to pay compensation if a

workman contacts any disease, which has arisen out of and in

the course of employment. In the case of workman murdered

by fellow workman on premises of the employer during the

rest, employer is not liable for compensation to the workman.The compensation claims cases in prescribed forms should

be illed up by personnel department in duplicate and is

forwarded to Accounts Deptt for scrutiny and veriication

of the calculated amount prepared as per Schedule I of

W.C.A.(1923).The case will be returned to Personal Branch

dully concurred for obtaining sanction of competent

authority and preparation of Pay Order in favour of LaborCommissioner. The payment of compensation under W.C.A.

1923 should be made promptly within stipulated period of

one month other wise in case of any delay the family members

of suffered workman can ile a suit in the court of law and



217


Hon’ble Court may pass orders for penalty of Interest @ 12%

or 18 % per annum. The claims are received from the Welfare

section of the Personnel department. The claims are veriied

on the basis of the following details: a) The various documents furnished like AC message,

Eyewitness statement at the Site of accident, Accident

Report, Post mortem report, Date of birth certiicate

etc. are studied in detail.

b) The relevant factor as per Schedule IV of the Act is

considered for calculating the compensation.

c) A list of injuries deemed to result in permanent total

disablement and permanent partial disablement is

provided in Schedule I of the Act.

d) The last twelve months emoluments are also

considered for calculating compensation amount. The

maximum amount payable as amended from time to

time is also to be considered while making paymentas per Para 4 of Chapter 2 of the Act.

2.2) I.O.D. PART B:-

2.2.1) EX Gratia Lump Sum Compensation

Ministry of Personnel vide their O.M. NO.45/35/97-P & PW(C)

dated 11-09-98 has introduced a new scheme of “Payment of

Ex-Gratia Lump sum compensation” to the family of CentralGovt. civilian employee who dies in harness, in Railway the

same was circulated vide RLY BD’s letter no. E (W) 99/CP-1/1

Dated. 5-11-99.These orders shall apply to all cases of death

in harness occurring on or after 01-08-1997.The conditions

governing the payments of Ex- Gratia lump sum compensation

and the guidelines have been indicated in the Annexure of

the above O&M. The main condition to be satisied for thepayment of Ex - Gratia Lump sum compensation is that the

death of the employee concerned should have occurred in

the actual performance of their bonaied duties. As on date

the minimum amount of Ex - Gratia lump sum compensation



218


to the family of deceased Railway employee who died in

performing their bonaied duty under various circumstances

are broadly divided into following categories: -

SR

No.

Condition of Accident Minimum Amt.

Payable

1 Death occurring due to accident in the course of

performance of duty

RS. 5 Lakh

2 Death occurring due to accident in the course of

performance of duty attributable to Acts of vio-

lence by terrorist or anti social elements etc.

RS. 5 Lakh

3 Death occurring due to: -

A (a) Enemy action in international war or boarder Rs.7.50 Lacs

B (b)Action against militants, terrorist, Extremists Rs.7.50 Lacs

The proposals of Ex - Gratia lump sum compensation is

prepared in duplicate with all relevant documents i.e. Copy of

AC Message (XXR), SOD, and Post Mortem report, Rough Sketchof accident Site. Witness etc. as per guidelines given in GM

(P) JBP Letter no. WCR/PHQ/1410/WEL/Ex Gratia Payment

Dtd 22-08-2006 and submitted to Accounts for scrutiny and

vetting. The claims are scrutinized as per guidelines and put

up to Sr. DFM through ADFM for vetting. While scrutiny of

the case the amount previously paid as Ex - Gratia interim

and through W.C.A. is deducted from the amount payablethrough Ex- Gratia compensation scheme and net payable

amount is vetted. After getting approval of SR. DFM the cases

are returned to Personal Branch for preparation of claim

in prescribed proforma and with joint signature of SR.DPO

and SR.DFM it is put up to DRM for approval. After getting

approval of DRM the cases are forwarded to HQ for obtaining

concurrence of F.A. &. C.A.O and personal approval of G.M (As

per instructions contained in Rly BD’s Letter no. E (W)/2006/

CP-1/37 Dtd. 01-05-2007).

NOTE: Rly BD’s vide their Letter no. E (W)/2006/CP-1/37 Dtd. 01-

05-2007 has ixed the maximum time limit of three months



219


period to settle down the cases so as to cause minimum

hardship to the claimants.

ANNEXURE – 1 (Documents required along with IOD cases)

(1) AC message (XXR Message) prepared in duplicate

by Depot -In -charge to inform HQ the full family

particulars and Service Record of the deceased

employee. All above documents should be signed by

Depot –In- charge and Welfare Inspector and counter

signed by Gazetted Oficer of concern Department

and Personnel Branch.

Time Limit: 3 days

For Vetting

A.A. 1 DAY

S.O. 1 DAY

ADFM/SRDFM 1 DAY

Joint Signature 1 Day

2.3) Proposal cases of Medical reimbursement

When Railway employees or their family members are

taking treatment outside Railway Hospital in emergency

or are referred by Railway Doctor for speciic treatment

in Govt. and other recognized hospital or for speciic test

from market for which facility is not available in RailwayHospital reimbursement of medical expenses incurred in

the treatment of the tests is admissible. These proposals are

broadly divided in two categories: -

(I) Referred Cases;

When a patient referred by Railway Doctors to Govt.

Hospitals or recognized hospitals for treatment or

speciic test.

(II) Non- Referred Cases

These cases relate to a medical condition which

require urgent attention and there is inadequate

time to report the medical condition to a Railway



220


doctor. Instead, to save the precious life, the matter

is referred to a private doctor who is nearest to the

place of incident. Clearly, no referral of Rlys doctor

is available to bear the expenses. All the claims arereceived from employees through CMS Will scrutinize

the case as per checklist and guidelines circulated by

HQ vide JPO No. HQ/AC/ENG/MED – REIM /459 –III

Dtd 10-08-2005.

And as per the CGHS rates list the acceptable

amount is calculated and recommended for vetting /

concurrence as the case may be. When the CGHS ratesare not available case is disposed of with the approval

of CMS in consultation with associate inance. In

Accounts ofice the case veriied against the said

JPO and other circulars issued by Railway Board or

HQ from time to time. When Pay Order received in

Accounts Ofice the following steps shall be taken:

• CO6 No is given to the Pay Order.

• It should be seen that required procedure is

followed and all documents are available.

• Funds are available for the current year.

• Sanction of competent authority is enclosed.

• Amount shown on Pay order is tallied with

the amount concurred.

Time Limit: 10 days for vetting/concurrence 03 days for

payment .

2.4) Proposal cases

Proposals received in the section are broadly on account

of implementation of ACP scheme, restructuring of cadre,

Stepping up of Pay, Pay anomalies in ixation because of not

being considered minimum beneit of Rs.25 w.e.f.01-01-86 and

Rs. 100 w.e.f. 01-01-96 at the time of ixation on promotion.

Up gradation of pay scale, wrong ixation of pay etc.



221


2.4.1) Proposal cases of Assured Carrier Progression (ACP)

Scheme: -

Employees particularly at lower level used to retire in the

same grade in which they were appointed. Railway Boardvides their Letter No. PC-V/99/1/1 Dtd 01-10-1999 allowed

two promotions in their service period. This progression is

given after completion of twelve year of continuous service

and second progression at the end of twenty-four year service.

NOTE: These orders are effective from 01-10-99 onwards only.

(Authority: Railway Board Letter No. PC-V/2004/ACP/1 Dtd

31-03-2004)

2.4.2) PROPOSAL CASES OF STEPPING UP OF PAY

The claims are veriied on the basis of following details: -

a) Service details of both (senior and junior employee),

submitted in comparatives statement are checked

with the entry of the Service Record.

b) Name of both employees are appearing in seniority

list.

c) It is ensured from service register that senior

employee has not refused promotion earlier.

d) It is veriied that both the employees has same channel

of promotion and were in identical scale.

e) Para 1313 of Estt. Code Pt. II shall be taken into

consideration while dealing with the proposal.

f) Latest instructions issued by Railway Board in this

regard under VIth PC recommendations may also be

referred to.

2.4.3) PROPOSAL CASES OF MINIMUM BENEFIT OF PAY

FIXATION AND OTHER ARRREAR CLAIMS.

Railway Board on recommendation of IV PC has issued order

vide their letter No. PC-IV /86. /IMP/36 Dtd 21-06-88 for

grant of minimum beneit of Rs.25 at the time of ixation of

pay on promotion and it was subsequently enhance to Rs.



222


100/-after implementation of VIth pay commission vide Bd’s

letter No. FE-II/99/FR/1/1 Dtd. 27-09-99. Proposals cases for

other arrear claims pertaining to a period prior to 3 years

of various nature such as arrears of family planning, HRA,Non payment of increment due to over sight, Transportation

allowance arrears, CCA etc. are also dealt in the section.

Each claim is examined for reasons of non-payment of dues

to the employee. The limit up to which arrears claims can be

admitted is speciied in chapter 10 of IREM VOL.I amended

vide advance correction slip of 1 of 2003.

Time Limit- Within 20 days.

3) RECONSTRUCTION OF SERVICE RECORD:

Service records when misplaced are to be reconstructed. The

proposals for reconstruction should accompany the following

documents:-

a) Personal ile of the employee maintained by the

Personnel department.

b) Document supporting date of birth.

c) Copy of the Appointment order.

d) Date of promotion to be supported by order copy.

e) Leave Account in original.

The yearly increments are to be checked with the leave

account, penalties if any affecting increment etc. For this

purpose JA grade committee constituting three oficers from

Personnel, Accounts and of department concerned is required

to scrutiny the records and sign the recasted Service Record.

4) SPECIAL PAYSHEETS/PAY ORDERS

Scrt Accots Ofce s doe wt regard to: -

a) Whether the competent authority has sanctioned the

claim.

b) Whether the claim is supported by due / drawn

statements, arrears statements etc. which has already



223


been checked by this ofice at the time of concurring

the proposal.

c) Whether the competent authority has signed the pay

sheet.

d) Whether accounts concurrence has been obtained

for arrears /claims over one year old and sanction

of competent authority is obtained accordingly. If

required Rly.Board/Headquarter’s approval has been

obtained as per nature of claims.

e) The name of the employee, designation and amount

of pay sheet/pay order tallies with the amount

concurred by this ofice.

[1413 A1]

5) CHECKS ON PAY BILLS

Pay Bills showing the Pay and Allowances for Group A, B, C

and Group D employees are received in the Accounts Ofice

to be checked and passed for payment. The pay bills have to

be received according to a schedule prepared by SR.DPO and

SR.DFM so as to enable accounts ofice to conduct thorough

checks. Bill drawing units should be advised for prompt

submission of salary bills to Accounts Ofice.

A list generated on computer showing the details should

be maintained and iled, since CO7 preparation has alsobeen computerized. (For details the Manual of AFRES on

Establishment Section may be referred to).

However, in the following cases, separate bills can be admitted

irrespective of the date ixed for the submission of the Pay

Bill of the unit or section to which the employee is attached.

Time Limit - Within 3 Days.

6) INTERNAL CHECK - GAZETTED OFFICERS

Apart from the above-mentioned checks, the following checks

shall be exercised for internal check of pay bill of Gazetted

staff. Various records maintained in the Accounts ofice for

this purpose are as follows (as per Para 1305 A1): -



224


i). Salary Audit ledger (FORM NO. A 1305)

ii). Income Tax recoveries register

iii). Issue of Pay Slips (FORM NO. A 1311)

iv). Leave accounts of Gazetted staff

v). Last Pay Certiicate.

vi). Maintenance of service cards. (PARA 1318 A1)

vii). Cadre check and cadre register (PARA 1319 TO 1323

A1)

NOTE: - In the case of Gazetted oficers, the ultimate responsibility for

the internal check of their bills rest with the Gazetted section

of the FA & CAO’s ofice and unit Accounts Oficers, and they

shall maintain all the records necessary for this purpose.

7) CADRE REGISTER AND CADRE CHECK

The main object of maintaining cadre register is to ensure

that the number of posts sanctioned for each grade in adepartment shall in no case be exceeded without the sanctions

of competent authority.

a) Separate folios/portion thereof should be set apart

for each category in a department.

b) The number of sanctioned post (both permanent

and temporary) for the different categories of the

employees should be entered in the top of the folio.The temporary sanction should be shown separately.

c) The increase/decrease in the cadre strength should be

indicated in the remarks column. The total number

of sanctions received in the section should be posted

correctly. At the end of every month, the entries

made should be checked from the salary bills for the

month. Changes made during the month, and in case

two employees draw pay against one post whenever

it is permissible should be recorded clearly. Similarly

leave reserve posts if any should also be indicated.

Departmental summary should be prepared as a



225


measure of test check to ensure that there is no excess

or irregular operation. The discrepancies noticed, if

any, should be put up to the Accounts oficer and the

matter should be taken up with personnel branch forimmediate action.

-[1320 -1323 A1]

8) INCOME TAX

Accounts ofice is responsible for correct recovery of income

tax and for transfer timely of the recovered amount to the

IT Department. On basis of estimated income for the year,Bill drawing units should recover approximate amount

every month from the salaries of the employees. For this

purpose, the Bill drawing oficer should send a statement

to the Accounts Ofice every year in advance, showing the

particulars of employees, alongwith the detail estimated

income and savings under various permissible categories.

This should be veriied with reference to the pay bill of theoficer concerned.As soon as the Accounts for the inancial

year are closed, Form No.16 prepared by Personal Branch is

required to be sent to Accounts for veriication. The same

has to be returned after veriication for disbursement to the

oficers for illing the Income Tax return.

-[1232 – 1233 A1]

9) RECOVERY OF WATER CHARGES

Bill drawing oficers shall recover water charges at the

prescribed rates from all the employees, who are in

occupation of Railway Quarters. Establishment Section has

to ensure while admitting the salary bills of employees that

the water charges have been recovered correctly from all the

employees who are in occupation of Railway Quarters. ChiefEngineer will advice the rate at which the water charges are

to be recovered.



226


10) INCREMENT STATEMENT

a) In the cases of Gazetted oficers, the increment

statement is sent to Accounts Ofice by bill

preparing authority for certiication and inclusionin salary bills. A copy of which is enclosed with the

salary bills.

b) The increment statement provides for a column

wherein, all periods which do not count for increment

i.e., periods of suspension, leave without pay, leave

not counted for increment during oficiating tenure

etc. should be indicated.

11) SUPPLEMENTARY BILL

Drawn and due statements will be prepared and sent to the

Accounts Ofice whenever there is need for supplementary

claims. Relevant ofice orders will be veriied to ensure that

the claim preferred through supplementary bill is genuine.

At the time of checking the drawn and due statements,

Memorandum of differences and Absentee statements of the

regular bills for the months to which the supplementary claim

relates should be veriied to see that it has not been passed for

payment provisionally. Regular bills for the months affected

should also be veriied. A copy of the certiied Drawn and

Due statement should be sent to the bill preparing unit who

will forward the supplementary bill, for the amounts shownin the statement, to Accounts Ofice. The Bill will be passed

for payment duly making a cross reference in the certiied

Drawn and Due statement.

-[1405 -1413 A1]

Following checks are to be ensured before passing these

bills: - a) Whether competent authority has signed the pay

sheet. i.e. Sr.DPO & APO.

b) Whether budgeting has been done for the claims.

c) Whether scale check has been done.



227


d) Whether pay sheet is accompanied by supporting

documents like Memorandum of differences, Absentee

statements, Recovery statements, etc

e) Whether Mileage, over time, Night duty allowance,and National holiday allowance claimed in proper

statements sanctioned by the competent authority

support the paysheets.

f) Whether D.A., HRA, CCA etc. claimed in the pay sheets

properly worked out as per the extant rules.

g) Whether miscellaneous payments like T.A., Washing

Allowances, the eligible staff claims Nursing

Allowances.

h) Whether all pay sheets bear necessary certiicate as

mentioned in establishment code.

i) If any correction is seen, it is attested/signed by

competent authority and relevant authority letter is

produced with the pay sheet.

12) SCALE CHECK REGISTER

All sanctions in respect of non-Gazetted establishment as

received should be entered in scale check register in the

prescribed form no. A1407 with separate folios for each class

or grade of staff and entries be attested by the S.O. of the

section. The pay bill of each unit shall contain a summaryof the sanctioned strength and the actual strength of the

unit. The actual strength shown in summary should be

checked up with the actuals charged in the bill at the time

of passing it. Entries from the summary shall be posted in

the scale check register for the month concerned. The total

strength of each category in the division for the month will be

compared with book of sanction available for each categoryof staff of every department. Instances of excesses over

the sanctioned strength, if any should be taken up with the

executive authorities concerned. Book of sanction should be

reconciled with Personnel Branch every year and certiied



228


Book of sanctions should be maintained to verify the scale

check.

-[1407A1]

13) LAST PAY CERTIFICATE

When a Railway servant is transferred from one accounting

unit to another a Last Pay Certiicate (LPC) showing the pay

and allowances drawn by him and the date up to which these

have been drawn will be prepared by the bill preparing oficer

in a prescribed form as given in Annexure V of Accounts Code

Part - I and sent to the ofice to which the Railway servantis transferred, duly counter signed by Accounts oficer.

The different deductions made against him and the sums

outstanding against him with particulars thereof will also be

shown in the LPC. The PF account number should invariably

be indicated in the LPC. The LPC is necessary document for

preparation of monthly salary for the ofice to which the

Railway servant is transferred.

-[1212 A1]

13.1) REGISTER OF LAST PAY CERTIFICATES(INWARD

AND OUTWARD)

a) Separate register containing the particulars

of L.P.C. issued and received should be

maintained in the Establishment section ofaccounts ofice. As the LPCs constitute a very

vital link for the transfer of suspense balances,

Provident Fund balances etc., it is necessary

to maintain these registers properly and

updated.

b) The correctness of LPC should be checked

up expeditiously and the same should beforwarded to the accounts oficer concerned.

This register should be put up to the Accounts

Oficer in the irst week of every month for his

information.



229


14) TRAVELLING ALLOWANCE

a) Traveling allowance is an allowance granted to meet

expenditure of a particular type and should be so

regulated that it is not on the whole a source of proitto the recipient, and that utmost economy should be

observed in the incidence of expenditure on account

of TA/DA.

b) Claims for Traveling Allowances for Non-Gazetted

and Gazetted staffs are included in the salary bills

after the T.A. statements are certiied in the Internal

Checking section of Accounts Ofice.

c) Traveling Allowances statements submitted to

Accounts Ofice should be accompanied by T.A.

Journals countersigned by the duly appointed

controlling oficer personally except in respect of the

staff whose pay does not exceed Grade Pay Rs.4200/-(

revised) in the VI- P.C.

d) The Bill drawing oficer should furnish the following

certiicate in the Traveling Allowance Statement

for employees drawing pay Rs.5000/-(pre revised)

that “The claim for Travelling Allowance has been

checked with the relevant rules, Travelling Allowance

journals and other records and found correct.” The

claims in such cases are not susceptible for anycheck in the Accounts Ofice except in regard to the

rate of Travelling Allowance admissible (veriied

with reference to employees’ Grade pay) and the

arithmetical accuracy to the claim. A test check of

the original Travelling allowance journals kept in

the departmental ofice is made during periodical

inspections and any irregularities noticed in thepreparation of claims for Travelling Allowance is to

be taken up with the departmental oficer concerned.

- [1213 to1214 A1]



230


14.1) Checks on TA BILLS:

a) While checking Traveling Allowance bills

accompanied by journals it should be seen

that the competent controlling oficer has inevery case countersigned journals.

b) The pay, pay band and grade pay shown in

the TA Bills should be test checked with the

pay bills, to ensure that the TA claimed is

according to the grade pay and no higher rate

of TA is allowed.

c) Object of the journey performed in each

case should be mentioned briely and

precisely. It should be checked to see that the

journey is performed in the interest of the

administration.

d) The timings of arrival at and departure from

head quarters of trains shown in the journalshould be checked with the Railway Timetable

in force. If the T.A. claimed is at higher rate

due to late arrival of Trains, the same has

to be checked with reference to late arrival

certiicates issued by the Station Staff.

e) In the case of staffs who are regularly on

tour throughout the month, as for exampleTrafic Inspectors, Commercial Inspectors

etc, the continuity of the journeys should be

checked by comparing the opening entries

of the journals under check with the closing

entries of the journal for the preceding month

terminated by a halt at a Station away from

headquarters. It should be seen that the DA/TA is not claimed continuously for more than

a month in violation of the payment of wages

act. It should also be seen that no TA is claimed

at the same station for more than 180 days

continuously.



231


f) When a Railway servant is entitled to draw

actual expenses, they should in the absence

of the orders to the contrary, be set forth in

detail. In the case of claims for road mileage,the rates of daily and mileage allowances

should be checked with the rates laid down in

appropriate rules and submission of the bus

tickets should be ensured.

g) The oficer of Junior Administrative Grade

should authorize journeys, beyond the home

line.

h) It is to be ensured with due veriication of

the records that Travelling Allowance has not

been claimed for the periods the employee

was on leave of any kind.

i) The Travelling Allowance/ daily Allowance

claims through Travelling Allowance journals

are to be prepared on the basis of journeys

performed by the Railway employees in their

respective wage periods and not on calendar

month basis. If an employee has earned

Travelling allowance/ daily Allowance for

a continuous period extending beyond the

close of the wage period, the portion of the

Travelling Allowance claims following within

that wage period alone should be claimed in the

Travelling Allowance journals for that wage

period. The balance of Travelling Allowance

claims should be claimed in the Travelling

Allowance journals for the subsequent wage

period to which they relate. If the journey

performed by the employee terminates at

HQrs the irst day of the next wage period, the

T.A. for that day can be included in the same

T.A. journal.



232


14.2) TRAVELLING ALLOWANCE RULES

Following are the different kinds of allowances, which like T.A.

are also controllable heads of accounts i.e. the expenditure

can be controlled under these heads:

i) Daily allowance

ii) Mileage Allowance

iii) Consolidated Travelling Allowance

iv) Conveyance Allowance

v) Actual cost of Travelling.

14.3) Daily Allowance on Tour Under VIth Pay

Commission:

In super session of Rule 1611 IREC – Vol II (2005 Edn.) and

Board’s Letter no. F(E) I/98/AL-28/9 Dated 24.4.98 the

grouping of grade pay ranges and the rates of daily allowance

are revised as follows w.e.f. 01-9-08 subject to the existing

conditions:-Grade pay Daily Al-

lowance

(per day)

Oficers drawing grade pay of Rs. 10000 and

above And those in pay scales of HAG + and above

Rs.520

Oficers drawing grade pay of Rs. 7600 to 8900/- Rs.460



Oficers drawing grade pay of Rs. 4200/- Rs.210

Note: The TA/DA rates mentioned in the Para on mileage allowance

for road journeys and daily allowances on tour shall be

increased by 25 % whenever Dearness Allowance payable on

the revised pay structure goes up by 50 %.

Daily Allowance to an employee will be admissible as under:-

(A) Less than 6 hours – 30% of daily allowance.

(B) More than 6 hours but does not exceed 12 hours –



233


70% of daily allowance. Full Daily allowance will be

admissible for each completed day or more than 12

hours.

(C) If a railway servant under takes more than onejourney on any calendar day, he can draw Daily

allowance separately for each journey beyond a

radius of 8 kilometers but the total Daily Allowance

for such journeys on any calendar day shall however

be subject to a maximum of the full Daily Allowance

admissible for each day of absence from midnight to

midnight.

D.) When a train arrives late less than 15 minutes the time

of arrival of the train will be taken as time recorded

in the Time Table. If the train arrives late more than

15 minutes the certiicate of Station Manager will be

required.

Note:I Engineering subordinates and staff of signal and Tele-

Communication and Electrical Departments when travelling

by Trolley within their jurisdiction will be eligible for

Travelling Allowance if the actual distance travelled is more

than 8 kms, from the Head Quarters. The actual distance

along the permanent way from their Head quarters to their

place of tour should be taken into account for this purpose

and not the distance from the Railway Station to the Railway

station.

14.4) CONVEYANCE ALLOWANCES:

In partial modiication of rule 1607 (5) IREC-VOL II (2005

Edition) the grade pay ranges for travel by public bus/ Auto

Rickshaw /Scooter /Motor Cycle /Taxi /Own car is revised as

indicated below:-

( Authority: Rly Bd’s Letter NO. F (E)1/98/AL-28/15 DTD. 01-12-2008 )



234


Grade Pay

(1)

Entitlement

(2)

(i) Oficer drawing grade pay of Rs.10000

and above and those in pay scale of HAG+ and above

Actual fare by any type of public

bus including air-conditionbus OR At prescribed rates of

AC taxi when the journey is

actually performed by AC taxi

OR At prescribed rates for auto

rickshaws for journeys by auto

rickshaws, own scooter , motor

cycle . moped etc.

(ii) Oficer drawing grade pay of Rs.5400,

Rs. 6600 ,Rs.7600, Rs. 8700 and Rs. 8900

Same as at (i) above with the

exception that journeys by AC

taxi will not be permissible

(iii) Oficers drawing grade pay of Rs.

4600, Rs.4800

Same as at (ii) above

(iv) Oficers drawing grade pay of Rs.

2400 and above but less than Rs, 4200

Actual fare by any type of public

bus other than air conditioned

bus OR At prescribed rates for

auto rickshaw for journeys by

auto rickshaw , own scooter /

motor cycle/ moped etc.

(v) Oficers drawing grade pay below Rs.

2400

Actual fare by ordinary public

bus only OR At prescribed rates

for auto rickshaw for journeys

by auto rickshaw , own scooter/motor cycle/ moped etc.

Mileage Allowance for road journeys shall be regulated at the

following rates in places where no speciic rates have been

prescribed either by the Director of the Transport of the

concerned state or of the neighbouring states.

For journeys performed in own car /taxi Rs. 16 per Km.For journeys performed by Auto rickshaw,

Own scooter etc.

Rs. 8 per Km.



235


The rate of mileage allowance for journeys on bicycle and foot

on tour and transfer is revised from 60 paisa to Rs. 1.20 per

km.

14.5) TRANSPORTATION ALLOWANCE

Consequent upon the decision taken the Govt. on

recommendations of the Sixth PC regarding Transportation

Allowance vide Ministry of Finance the Railway employees

shall be entitled to Transportation Allowance at the following

rates:-

Employees Grade Pay of Rate of Trans-port Allowance

per month

In 13 cities* clas-

sed as A- 1/A

earlier

Other

Places

Grade pay of Rs.5400 & above Rs.3200+DA

thereon

Rs.1600+DA

thereon

(i) Grade pay of Rs.4200, Rs.4600

and Rs.4800

(ii) Those drawing grade pay below

Rs.4200 but drawing pay in the pay

band equal to Rs.7440 and above

Rs.1600 +DA

thereon

Rs.800+DA

thereon

Grade pay below 4200 and pay in

the pay band below Rs. 7440

Rs.600 +DA

thereon

Rs.400+DA

thereon

*Hyderabad (UA),Delhi(UA), Banglore (UA), Greater Mumbai(UA), Chennai

(UA),Kolkatta(UA), Ahemdabad(UA), Surat(UA), Nagpur (UA),Pune(UA), Jaipur(UA),

Lucknow(UA) and Kanpur(UA).

(Authority:- Railway Bd’ Letter NO. PC-V/2008/A/TA/2 DTD 12-09-

2008)

14.6) COMPOSITE TRANSFER GRANT ON TRANSFER

i) In the case of transfer involving a change of station

located at a distance of more than 20 km from each

other the composite transfer grant shall be computed

as below:-



236


Ofcers te pa

scale of HAG+ and

above

One months basic pay as drawn in the pay scale

All oter ofcers Equal to one months pay is drawn in thePrescribed pay band + the applicable grade pay

ii) At present only one transfer grant is permitted if the transfer

of husband and wife takes place within six months of each

other from the same place to the same place w.e.f. the date of

implementation of these orders. In cases if the transfer takes

place within six months but after 60 days of the transfer of

spouse 50 % of the transfer grant on transfer shall be allowed

to the spouse transferred later. No transfer grant shall be

admissible to the spouse transferred later in case both the

transfer orders within 60 days. The existing provisions shall

continue to be precluding transfer grant in case of transfer

at own request or transfer other than in public interest shall

continue to apply unchanged in their case.

(Authority: (Railway Board’s letter No. F (E) I /2008/AL-28/15 date

01-12-2008.)

15) FOREIGN SERVICE CONTRIBUTION

Foreign Service means service in which a railway servant

receives his substantive pay with the sanction of Government

A) From a source other than the general revenue, orB) From a company working as state Railway.

C) While a Railway servant is in Foreign Service,

contribution towards the cost of his Pension must be

paid to general revenues on his behalf.

D) If the Foreign Service is in India, contributions must

be paid on account of the cost of leave salary also.

E) Contributions, due under clause (a) and (b) above,

shall be paid by the concerned Railway servant

himself, unless the foreign employer consents to pay

them or otherwise. They shall not be payable during

leave taken while in Foreign Service.



237


F) Contributions on account of leave salary must be paid

only in the case of transfer is in India. But in special

circumstances Foreign Services out of India also the

foreign employer can pay the contributions towardsleave salary.

When a Railway servant is transferred to a foreign service,

contribution towards the cost of his pension or the cost of

Government contribution payable to his credit in a Provident

Fund, as the case may be, and the cost of leave salary are to

be paid by the Foreign employer to the general revenue on his

behalf and in the case of the foreign employer does not paysuch contribution, the Railway servant himself shall pay the

same.

Leave salary and pension contributions should be paid

separately. Contributions may be paid annually within 15

days from the end of each inancial year or within 15 days of

the end of Foreign Service in case of Foreign Service completes

before the end of inancial year. But contributions in respectof SRPF (contributory) will continue to be paid monthly.

15.1) CALCULATION OF FOREIGN SERVICE

A) The rates of pension contribution have been

designed to secure to the Railway employee the

pension that he would have earned by service under

Govt., if he had not been transferred to ForeignService.

- [IREM VOL II PARA 2006 & 2023]

B) The rate of contribution for leave salary will be

designed to secure the railway employee leave salary

on the scale and under the conditions applicable to

him. In calculating the rate of leave salary admissible

the pay drawn in Foreign Service less, in the case ofRailway employees paying their own contributions

such part of pay as may be paid as contribution, will

count as pay for the purpose of Rule 103(35) (FR

9(2)).



238


I) Leave Salary Contribution:

The rates of leave salary contribution will be @ 11%

of pay of the employee drawn in Foreign service.

– [IREM VOL II PARA 2007]

II) Pension contribution:

Contribution for pensioner beneits will be on the

percentage basis of the maximum monthly pay of the

post in oficiating/substantive grade according to

the length of service of the employee at the time of

proceeding on Foreign Service.15.2) SIMPLIFICATION OF ADJUSTMENTS ON ACCOUNT

OF ALLOCATION OF LEAVE SALARY AND PENSION

BETWEEN CENTRAL AND STATE GOVERNMENTS

In pursuant to the recommendations of the committee

appointed in connection with the above subject, it has

been decided in consultation with the state Govt. to

dispense with the system of allocation of leave salary

and pension between Central and State Governments

as speciied below:

(a) Leave Salary:

The liability for leave salary will be borne in

full by the Department from which the Govt.

Servant proceeds on leave, whether it beparent department or borrowing department

with whom he is on deputation.

(b) Pension:

The liability for pension including gratuity

will be borne in full by the Central/State Govt.

department to which the Govt. employee

permanently belongs to at the time of

retirement. No recovery of proportionate

pension will be made from Central/State

Govt. under whom he had served.

(Railway Board Lr. No. F (E)II/87/IN3/1 Dt. 151287)



239


15.3) PROCEDURE FOR PAYMENT OF CONTRIBUTION

A copy of the orders sanctioning a railway servant’s transfer

to foreign service must always be communicated to the

Accounts Oficer by the authority by whom the transfer issanctioned. The railway servant himself should, without

delay, communicate a copy to the Accounts Oficer and take

his instructions as to the oficer to whom he is to account

for the contribution; report to the latter oficer the time and

date of all transfers of charge to which he is a party when

proceeding on, while in and on return from, foreign service

and furnish from time to time particulars regarding his payin foreign service, leave taken by him, his postal address

and any other information which that Accounts Oficer may

require.

- [IREM VOL II PARA 2009]

15.4) INTEREST OR OVERDUE CONTRIBUTIONS

Contribution for leave salary or pension due in respect ofa railway servant on foreign service may be paid annually

within 15 days from the end of each inancial year or at

the end of the foreign service, if the deputation on foreign

service expires before the end of a inancial year, and if the

payment is not made within the said period, interest must be

paid to Government on the unpaid contribution, unless it is

speciically remitted by the President at the rate of two paisea day per Rs.100/- from the date of expiry of the period of

15 days up to the date on which the contribution is inally

paid. The Railway servant or the foreign employer shall pay

the interest according as the former or the latter pays the

contribution. The leave salary and pension contributions

should be paid separately as they are creditable to different

heads of accounts. - [IREM VOL II PARA 2012]

Note: No dues recoverable from Govt. on any account should be set

apart against these contributions.



240


15.5) TRAVELLING ALLOWANCE

a) The travelling allowance of a Railway servant both in

respect of the journey on transfer to Foreign Service

and the journey on reversion there from to railwayservice will be borne by the foreign employer.

b) Promotions

Government servants deputed on Foreign Service are

entitled to get pro- form a promotion while on Foreign

Service and such promotion shall be regulated in the

same manner in the principle of “Next below Rule”.

The increased pay due to promotion should be taken

into account for FSC.

15.6) WITHHOLDING OF CONTRIBUTIONS

A railway servant in Foreign Service may not elect to

withhold contributions and to forfeit the right to count as

duty in railway service the time spent in foreign employer.

The contribution paid on his behalf maintains his claim topension or to pension and leave salary as the case may be,

in accordance with the rules of the service of which he is a

member. Neither he nor the foreign employer has any right of

property in contribution paid and no claim for refund can be

entertained.

15.7) PAYMENT BY FOREIGN EMPLOYER OF PENSION

OR GRATUITY

A Railway servant transferred to foreign service may not,

without the sanction of the President, accept a pension or

gratuity from his foreign employer in respect of such service.

15.8) LEAVE DURING FOREIGN SERVICE IN INDIA

A railway servant in foreign service in India may not be

granted leave otherwise than in accordance with the rulesapplicable to the service of which he is a member, and may

not take leave or receive leave salary from Govt. unless he

actually quits duty and goes on leave.



241


15.9) LEAVE DURING FOREIGN SERVICE OUT OF INDIA

His employer on such conditions may grant a Railway servant

in Foreign Service out of India leave as the employer may

determine. In any individual case, the authority sanctioningthe transfer may determine before hand, in consultation

with the employer, the conditions on which the employer will

grant leave. The employer will pay the leave salary in respect

of leave granted by the employer and leave will not be debited

against the railway servant’s leave account.

A. In special circumstances, the authority sanctioning

a transfer to foreign service out of India may make

an arrangement with the foreign employer, under

which leave may be granted to the Railway servant

in accordance with the rules applicable to him as a

railway servant, if the foreign employer pay to Central

Government leave contribution at the rate prescribed

under Rule 2007 (FR 116).

- [IREM VOL II PARA 2016 to17]

15.10) RECOVERY OF FOREIGN SERVICE CONTRIBUTION

Register of Railway servants in Foreign Service and whose

contributions are adjustable in the books of the Railway

should be maintained in Establishment Section to enable a

check being exercised over the recovery of the contribution.

This Register should be posted after the sanction to thetransfer is scrutinized and the Accounts Oficer should attest

the entries. The register should be reviewed and watched for

the realisation of the FSC periodically. All orders received

regarding a Railway servant on foreign service and orders

issued by the Accounts ofice for recovery of interest or if

contributions in arrears and the cause of the contribution

ceasing to be realised owing either to transfer, death,dismissal or any cause should be recorded in this Register.

Records to be maintained in form No.A1221-Code for the

Accounts department 1997 (Second Print).



242


15.11) DELAY IN RECOVERY OF FSC CHARGES

In several cases, sanctions containing the terms and

conditions of transfer on Foreign Service are being issued

very late with the result that calculation and intimation ofthe rates of Foreign Service contributions are delayed and

penal interest become payable. With a view to facilitating

the recovery of Foreign Service contributions in time and

there by avoiding payment of penal interest etc. it should be

ensured that in case of transfer of Railway servant to Foreign

Service all the terms and conditions of his transfer are settled

well in advance in consultation with foreign employer, theAccounts Oficer and Railway employee concerned before the

employee is released to take up the foreign service.

The rates per men sum at which Foreign Service contributions

are payable shall be included in the terms and conditions of

transfer. The foreign employer or the Railway servant should

arrange to pay the contribution (FSC) within 15 days from

the end of month in which the Railway servant has drawn thepay on which it is based. This clause should be incorporated

in the terms of the Transfer. On relief of a Railway servant

to Foreign Service, a copy of the relief ofice order together

with the terms of the transfer should be forwarded to the

Accounts Ofice.

The Accounts ofice should verify the correctness of the

rate of Foreign Service and make necessary entry in the FSC

Register. The details of Foreign Service should be entered

in the service record of the Railway servant. Any alteration

in rate of FSC due to change in the rate of pay in the parent

Department or Foreign Service should be advised by the

Executive to the Railway servant, foreign employer and to the

Accounts ofice. Particulars of leave availed by the Railway

servant while in Foreign Service shall be immediately advised

to the Accounts oficer. The Accounts ofice shall make

necessary entries and adjustment of leave salary in the Books

of the Railway. The Accounts ofice should watch the receipt

of the Foreign Service contribution and on receipt of the same



243


shall make entries and adjust the same in the Books of the

Railways. The details should be recorded in the Register kept

for this purpose. Delay in receipt of FSC should be promptly

brought to the notice of the Executive and Foreign employerand Railway servant. Interest on outstanding Foreign Service

contributions should be claimed as per terms. A complete

list of staff who were on Foreign service should be furnished

to Accounts Ofice by personnel Department to enable the

Accounts to watch and verify whether the FSC charges are

realised correctly.

16) PROCEDURE FOR TEST-CHECK:







is any tendency to do the work casually. Test check shouldparticularly be conducted at least once in a month by SO and

all oficers. The test checks should not be of routine nature





- [Para 803 A1]

16.1) RECORDING OF RESULTS OF TEST CHECK :


a manuscript register in the form given below:-

SR

NO.

Item of

w o r k

t e s t

checked

Extent

of Test

check

pre-

scribed

P a r t i c u -

lars of

vouchers

e l e c t e d

for test

check

Name of the SO /

SSO(A)who had

test Checked the

item

R e s u l t

of Test

check

W h e t h e r

the dis-

c r e p a n c y

in col.6 has

been point-

ed out by

the super-

visory staff

1 2 3 4 5 6 7



244





should contain adequate particulars so as to facilitate theidentiication of the entry/voucher subjected to test check






given as a separate note for further disposal being done onthe connected ile(s) and a cross reference to this note should





test check.

16.2) TEST CHECK OF REGISTERS:




should be put up for inspection by Oficers has been prescribed

in Appendix VIII of the State Railway Code for the Accounts

Departments-Part-I.16.3) PERIODICITY OF SUBMISSION OF TEST CHECK

REGISTER TO OFFICERS:



test check, date on which put up and the date reviewed by the

Oficer concerned. The test check registers of Section Oficers

and Senior Section Oficers should be put up to the BranchOficer on the 10th of each month indicating the test check

done on the work of clerk in the preceding month for review

and orders, where necessary, by the Branch Oficers. A brief

of important test checks shall be put up to FA&CAO through

MPR.



245


Extent of Test Checks required for different type of works.-

Description of

the Work

Extent of check by

Gazetted Ofcer .

Extent of check by SO(A)/

SSO (A)

Foreign Service

C o n t r i b u t i o n s

register

Monthly review 5 items to be checked

completely every month,

and monthly review.

Payment under

W.C.Act

1 case per month 4 cases per month

Pay sheets (i) Salary Bills of one

G.O. and one non-

Gazetted staff per

month.

S u p p l e m e n t a r y

Bills.

Supplementary bills

of 2 non-Gazetted

staff per month.

10 Non-Gazetted staff per

month.

Scale check

Register

Entries in respect of

one salary bill once in

2 months.

Entries in respect of two

salary bills per month

Internal check of

TA Bills

TA Bills of 2 Gazetted

and TA Bills of 4 non-

Gazetted staff

TA Bills of 8 Gazetted and 8

non-Gazetted staff

Leave application

of Gazetted Oficer

One leave application

every alternative

month

2 leave applications per

month

Journal Voucher One JV every month 4 JVs every month.

Last Pay Certiicate One LPC every month 2 LPCs every month

Service Cards of

Gazetted Oficers

Few entries on 20%

of cards at the end

each 5 year period

2 Service Cards per month

Posting in S.A.R Two cases per month Six cases per month

17) STAFF BENEFIT FUND (SBF):

SBF is established solely for the beneit and welfare of the

non gazetted employees t o help them for certain speciic

purpose. This fund is primarily intended to relieve the



246


railway employees from the distress caused to them due to

certain economic , educational and health problems . This

fund is managed by a committee at the headquarter of the

railways and consists of:- • CHAIRMAN -Chief Personal Oficer

• OFFICIAL MEMBER -DY. GM & Chief Medical Oficer

• SECERATERY -Welfare Oficer

• MEMBERS -Six members elected from

recognised unions.

-Four members elected by theCentral staff council or the

G.M. (where Central staff

council is not established)

Similarly, Regional sub- committees are formed in the

division and workshop to administer the fund.

(I) Resources:- The SBF is inanced from:-

(1) Receipts from forfeited PF bonuses of non

gazetted employees .

(2) All other receipts which used to be credited to

the fund previously.

(3) Contribution from Railway revenue @ Rs.20

per year a per capita basis i.e. Rs. 20/- per

head of non gazetted employees on strengthpreceding 31st March.

(4) Adhoc grant which is being given to each of

the Railway by Railway Board from time to

time.

The distribution of the SBF grant is as under:-

(II) General activities:-(a) Educational:- Assistance for the purpose

of higher studies in engineering , scientiic,

medical, diploma and management courses ,

in the shape of scholarship.



247


(b) Recreation other than sports

(c) Inter Railway cultural competition.

(d) Relief of distress, sickness etc.:- Relief to

deaf dumb and blind children of Railway

employees.

(e) Miscellaneous.

(III) Sports activities

(IV) Scout activities

(V) Recreato facltes to ofcers ad spervsor

staff.

(VI) Indigenous system of medicine including

Homeopathy .

( Authority: Rly Bd’s letter no. E(W)97/FU-1/4 Dated 13-10-99.)

A consolidated list of employees/ their wards approved by

sub committee is forwarded to zonal committee and after

approval getting from zonal committee the same is circulatedto the divisions and on the basis of approve list the depot/

personal branch will prepare special pay sheets / pay orders

and send it to Accounts ofice for passing. Immediate after

receipt of the same in the Accounts ofice after scrutiny

the same is passed and co7 is prepared by charging the

expenditure to the Headquarter and transfer the debit

through transfer certiicate.

18) CHILDREN EDUCATION ASSISTANCE:-

Consequent upon the Govt. on recommendations made by VI

PC and in suppression of all earlier orders on the subject of

children education allowance and reimbursement of tuition

fees , the following instructions are revised:-

I. Children Education Allowance

(a) Children education allowance and reimbursement of

tuition fees, which where hither to payable separately

will be merged and will henceforth be known as

“Children Education Allowance Scheme.”



248


(b) Under this scheme reimbursement can be availed by

Govt. servant up to a maximum of two children.

(c) Reimbursement as indicated above will be applicable

for expenditure on the education of school goingchildren only i.e. for children from class nursery to

twelve , including classes 11th and 12th held by Junior

colleges or schools afiliated to universities or Board

of education.

(d) The reimbursement of children education allowance

shall have no nexus with the performance of the

child in his class. In other words, even a child fails

in a particular class the reimbursement of children

education allowance shall not be stopped.

(e) Reimbursement for the following items can be claimed

under this scheme. :-

Tuition fee, Admission fee, Laboratory fee , Special

charges for agriculture , Electronics , Music or anyother subjects ,are charged for practical work under

the programme of work experience , fee paid for

the use of any aid or appliance by the child , library

fees, games /sports fees, and fee for extra curricular

activities . This also includes reimbursement for the

purchase of one set of text books and note books, two

sets of uniforms and one set of school shoes. Whichcan be claimed for a child, in a year.

(f) The annual ceiling ixed for reimbursement of

education allowance is Rs. 12000/- per child.

(g) Under this scheme reimbursement can be claimed

once every quarter. The amount that can be claimed

in a quarter could be more than three thousand and

in another quarter less than three thousand subjectto the annual ceiling of Rs.12000/- per child being

maintained.

(h) In case both the spouses are Govt. servant , only one

of them can avail reimbursement under this scheme.



249


(i) The above limit would be automatically raised by 25

% every time the DA on the revised pay structure

goes up by 50 %.

II Hostel Subsidy :

Hostel subsidy will be reimbursed up to the maximum

limit of Rs. 3000/ per month per child subject to a

maximum of two children. However, both hostel

subsidy and children education allowance can not be

availed concurrently.

These orders shall be effected 01-09-2008.( Authority:- Railway Board Letter no. E(W) 2008 / ED-2/4 Dated 01-

10- 2008 )

19) PNM/PPM

19.1) Permanent Negotiation Machinery (PNM)- This

machinery has been set up in the Railway with a

view to maintain an effective contact with labourand also to see to resolve disputes and differences

arises between the labour and the administration in

day to day working . The solution to various disputes

and differences is sort to be achieved by means of

negotiations for which this machinery has been

introduced.

The PNM works at three levels:-

(a) At divisional level, where the PNM meet the local

administration once in two month and discuss

the problems of employees of the particulars

establishment. Many a problems are solved at such

meeting and better understanding between the

workers and the administration. If some problems

evades at this level, they are referred at the next

higher level. In division DRM/ADRM is the chairman of

the meeting. If any booklet regarding any PNM items

related with establishment claims of the employees is

received, immediate reply of such items is to be given



250


and the details of payment if passed by Accounts may

be given like CO7 NO. amount passed etc.

(b) At Zonal level, where the workers representatives

meet the oficers of the headquarters includingthe General Manager once in three months and all

outstanding problems are discussed. The problems

which can not be settled at this level are brought

before the still higher level.

(c) At Railway Board level , where all problems which

could not be solved satisfactory at Railway’s level

, are raised in the half yearly meeting between the

federation and the Railway Board.

If some differences and disagreements still remain

unsettled , these are referred to an adhoc Railway

Tribunal with a neutral Chairman and having

representatives both of the Railway Board and the

Federation.

19.2) Payment pending meeting (PPM):-

DPO is the chairman of PPM at division level, whereas

ADEN is the chairman at sub-division level. This

meeting is to be held on monthly basis. In such meeting

authorized representatives of union, one ADFM from

Accounts side and DPO will sit together and the

problems of employees’ claims which are included inthe agenda and for which one booklet is prepared and

circulated well in advance to all concern is discussed

and settled.

The items which are included for the discussion in

the PPM is discussed with the union representatives

and one SR.SO/SO from Account side will participate

in such meeting to settle down the items. Those itemswhich are not settled during the sub – divisional PPM

are referred to divisional PPM for discussion and for

its disposal.



251


20) Productivity Linked Bonus (PLB):-

AIRF AND NFIR accepts the scheme of PLB in view of their

demand for payment under the payment of bonus act 1965.

The productivity shall be determined solely on the basis

of Revenue Trafic Tonne Kilometer achieved each year as

derived from the relevant audited statement of statistics of

Indian Railways. The actual performance alone shall be the

basis of productivity and the productivity linked bonus.

PLB for each inancial year covered by this scheme shall be

paid by 31st October of the succeeding inancial year. The

grant of PLB intended to provide substantial motivation

towards achieving higher productivity by way of increase the

output by the employees and improve quality of service.

Railway board in consultation with the federation members

the days of PLB and the monthly ceiling limit decides and on

the basis of such orders the personal branch prepares bonus

cards for each employee and pay sheets of the bonus and thesame is received in the Accounts ofice wherein it is passed

and such bonus cards are kept for post check purpose. While

post checking if any over payment is detected the personal

branch is intimated for their recovery under advice to

Accounts ofice.

21) Maintenance of Service Records and Salary Audit

Regsters for Gazetted ofcers.:

When a gazetted oficer arrived on transfer from other

accounting unit their service records to be received as early

as possible to enable this ofice to maintain their Salary audit

register accordingly. For the purpose immediate after receipt

of audited LPC from transferred accounting unit the letter

is to be written to such accounting unit and matter is to bepersonally chased by supervisor level. Similarly, the SRs of

the oficers who have been transferred to other accounting

unit their SR after completing all details like leave details,

increment sheet etc to be transferred at the earliest to the

accounting unit where he has been transferred.



252


Time Limit: 15 days for inward and outward SRs.

In computerization environment the SAR is now computerized

and passing the regular payment of oficers the hard copy is

being extracted.

22) AFRES (PROCEDURE TO BE FOLLOWED IN

ESTABLISHEMENT SECTION)

Apart from checks mentioned in previous pages the process of

taking CO6 no. and making CO7 for passing the bills through

AFRES, involve the following modus operandi :-

i). Password is allotted to each bill clerk wherein he willopen AFRES with his own password.

ii) After Selecting Internal Check menu he will open

Transaction Menu, where following options are

available: -

• Salary Bills Register and Posting.

• Supplementary Bills Register and posting• Non- Salary Bills register and posting

• Bill Return

• Co7 Posting

• Co7 Conirmation /cancellation

• Cash Outward Transaction

iii) As per requirements, he will select one of the options. iv) Reconcile the igure of Pay bill concerned and as given

in menu if all igure match then ‘AU6 ‘No. is selected.

v) For preparation of Co7, the bill-passing menu is opened

and AU6 already checked, selected for proposals of

Co7.

vi) Co7 No. will be noted down, automatically selected by

system, on pay sheet concerned and can be printed in

“Report Menu.”

vii) Bill clerk and SSO (ESTT.) check these bills and after

the checks the same will be put up to Accounts Oficer

for signature.



253


viii) The bills should be handed over to Books Section

after conirmation of Co7, for preparation of cheques

/ Electronic Transfer.

It may be noted that in case of any irregularity it shouldbe traced in ‘Audit Menu”. In case of return for Executive

ofice “Bill Return Menu” is to be operated. There are few

transactions like Misc. Pay Orders, Unpaid vouchers, Court

Attachment Pay Order etc., which are not generated through

‘PRIME”. In addition to above certain books adjustment are

required to be carried out. Such adjustments are done by

preparing ATC/ATD and RJV by selecting ‘Cash OutwardTransaction” and by entering detailed head of account to be

debited or credited with amount. At the end of the month AU6

Register for the month is printed selecting ‘AU6 REGISTER

MENU” For audit and record purpose.

Note: The detailed procedure of working on AFRES is annexed as

AFRES USER MANUAL



Chapter 8

BILLS RECOVERABLE

1) BILLING:

Bills are prepared for the various facilities, provided by

Railways, such as sidings, land licensing, interest and

maintenance charges for various sidings. Every revision has

done by the executive then these ofice issues normal bills till

next revision. It is to be seen that the bills are prepared timely

& correctly, with reference to facility, rate, area, previous out

standings, period for which being billed.

Bills for cost of Commercial staff, C&W maintenance charges

since been prepared by concerned executives quarterly. It is

vetted by Accounts and after vetting the same is returned to

them for onward transmission. Bills for way leave charges not issued by Accounts since

the charges already vetted and demand notes are issued by

ENGG. Department.

2) License fee of Land/Plot rent:

Policy guidelines for commercial licensing of Railway land

last issue vide Bd’s letter no.63W2/Livi/18/87 dated 29.08.95in super session of the earlier policy directives, have been

amended from time to time. With a view to bring all such policy

instructions under one umbrella, it has been decided to issue

a Master Circular combining all the instructions issued so far

on the subject. Considering above aspects Railway Board vide

their letter No.2005/LML/18/8 Dated 10-01-2005 has issued

instruction in this regard and Railways are required to quotethis letter for any further reference .However , amendment to

this letter is received vide letter no. 2005/LML/18/8 dtd 08-

06-2005 . While dealing with the issue this letter may also be

kept in mind.

254



255

Bills Recoverable

For dealing with the cases of Licensing of Railway land for

(RAILTEL CORP. OF INDIA LTDD.(RCIL) BD’s letter no. 02/

LML/13/12 Dtd. 10-10-06 may be kept in mind . This is also

reiterated that while dealing any land licensing proposallatest instruction on the issue should be referred to.

3) Schools & Welfare Organisations and Mandirs , Masjids

and Gurudwaras:

For schools and welfare organizations, separate

instructions have been issued vide letter No.92/LM (L)/21/4

of 11/05/1992. A nominal amount, to be paid each year, hasbeen ixed for these organizations. For Mandirs, Masjids and

Gurudwaras, Railway Board has issued separate instructions

vide letters No.2000/LML/22/1 of 31/05/2001, wherein it

has been decided to charge a nominal fee from them, with

a provision of revision from time to time. These orders are

speciic to some cases. Railway Board’s letter No.84/W2/

LM/18/159 of 21/05/87), however, lays down comprehensiveguidelines about religious structures.

4) Way-Leave Charges:

Way leave facilities / easement rights on Railway land involve

occasional or limited use of land by a party for a speciied

purpose like passage etc. without conferring upon the party

any right of possession or occupation of the land and withoutin any way affecting the Railway’s title, possession, control

and use of the land.

-PARA 1033 (ENGG CODE)

Guidelines regarding ixing of way-leave charges were

issued vide Board’s letter No.97/LML/24/3 Of 27-11-01 ,

which clearly deines the modus operandi to be followed

while ixing the way – leave- charges in different matter.However regarding laying of optic iber cable (OFC) cable ,

Railway Board vide their letter no. 2001/LML/24/20 Dated

16-08-2005 have issued detailed guide line which may be

kept in mind while dealing any such proposal. Regarding way



256


leave facility for under ground laying of cable tv , Bd’s letter

no. 20001/LML/24/20 dtd 13-11-01 will be the guiding factor

however , any correction slip etc. issued afterwards should

also be considered while dealing with the issue.

5) RENT OF BUILDINGS.

Buildings rented to private parties are treated equivalent to

licensing of land. Hence they are covered under Board’s letter

of 29/08/95. However, policy regarding provision of Quarters

for GRP personnel has been laid down vide Board’s letter

No.92/LM(B)/21/41/Policy of 12/10/93. The letter stipulatesthat a rate of 3% of the market value of land is to be charged,

with revisions every 10 years.

6) Assisted Siding

(i) The words “Interest and Maintenance” charges

are used typically in the context of Assisted sidings

who are required to pay an “interest & depreciationcharge” on the capital cost as per book value borne

by Railway in the initial construction at the prevalent

rate of Dividend payable to the general revenue (7%

since 1993, as per Appendix IV of the report of

Railway Convention Committee).

(ii) In addition to interest, the party has to pay

maintenance charges at the rate of 4/2% on the costof portion of siding borne by Railways on the present

day cost of the siding. Maintenance charges will be

payable on the portion of siding outside Railway’s

premises and are subject to review every ive years.

For example, if in 1996, a siding was provided at

Rs.100/-, the maintenance charge will be Rs.4.50/-.

In the year 2001, if the assessed cost of the review isRs.150/-, the maintenance charge will be Rs.6.75/-.

7) Private Sidings

Instructions with regard to levy of maintenance charges

for the private sidings have been laid down vide Board’s



257

Bills Recoverable

letter No.58/W1/SA/13 of 23/04/1982 which were further

modiied vide Board’s letter No.85/W1/SP/45 of 01/12/1986

and letter No.85/W1/SP/45 of 20/04/87.

The circular of 23/04/1982 was issued with the intention oflaying down a uniform procedure in view of representations

being received from siding owners about lack of uniformity

from one Railway to another. The process of calculation

of maintenance charges is rather tedious and not easily

intelligible. The same is explained as under:

• The rst step is to arrive at charges per kilometer

which would account for the following factors: -

(a) T & P charges - Rs.200/-

(b) Replacement of small ittings - 3% per year of

cost of new

ittings

(c) Staff cost (at scale prescribed) - Pay+ allowances

as speciied inby Board vide

Board's letter

of 23/04/1982

(d) Departmental charges - 12% of (a+b+c

above)

• The staff requirement for one kilometer of sidinghas also been specied by Board.

• For every 10 sets of points & crossings, one

kilometer is to be added to siding length

reckoned for levy of maintenance charges.

7.1) Payment of Inspection Charges:

In the event of the portion of siding inside party’spremises being maintained by the party itself,

inspection charges are leviable. These charges are in

the nature of a ixed minimum amount for the irst

ten kilometers of siding lengths, and then an amount



258


for every km. beyond 10kms. These charges are also

subject to ive-yearly revisions. These instructions

are contained in Board’s letter No.83/W1/SP/12/PT

of 22/03/1993.7.2) Cost of Staff:

As the name suggests, these charges are levied on

actual basis for the staff deployed to sidings. The

elements, which are charged, are as under:

ACRONYM STANDS FOR REMARKS

WAGES Basic Pay Charged as per the grade of the

employee.

DA+Arrs DA + Arrears (if

any) on DA.

Charged as per the rate of DA ixed

by the Central Government from

time to time.

HRA House Rent

Allowance

Charged as per the Grade of the

place where the staff is deployed.

CCA City Compensatory

Allowance

Charged as per the Grade of the

place where the staff is deployed.NHP National Holiday

Pay

Charged for those employees who

work on National Holidays.

TA T r a v e l i n g

Allowance

Charged as per the prevalent TA

rules and the actual movement of

the employee.

NDA Night Duty

Allowance

Charged for those employees who

are performing night duty.

OT Over Time Charged on the actual over time

worked by the employee.

Trans Allow Tr a n s p o r t a t i o n

Allowance

Charged as per the conveyance

allowance ixed by the VIth Pay

Commission.

Incidental Exp Incidental Charges Charged @10% of (Pay +

Allowances) as per Railway

Board’s letter No. F(E)II-83/Misc/1 of 27/06/1984.

Leave Salary Leave Salary Charged @ 15% of (Pay +

Allowances) as per Railway

Board’s letter No. F(E)II-83/

Misc/1 of 27/06/1984.



259

Bills Recoverable

ACRONYM STANDS FOR REMARKS

Contribution

to SRPF &

GRATU

Contribution to PF

& Gratuity

Charged @ 1/8 of (Pay+DA) as per

Railway Board’s letter No.F(E)II-

83/Misc/1 of 27/06/1984.Deduction to-

wards House

Rent, Electric-

ity and Water

Charges, Meter

Rent.

Deduction towards

House Rent,

Electricity and

Water Charges,

Meter Rent.

This amount is being deducted

from the bills raised on the party

if the party has provided these

facilities to the Railway Staff.

However, vide letter No.85/W1/SP/45 of 01/12/1986, RailwayBoard has speciied that the cost of staff, except commercial,

staff at sidings dealing with POL and other hazardous

commodities, and those exceptional cases enlisted in Board’s

letter No.77/M (N)/951/36 of 13/04/1981, required by the

railways for the operation of the siding should be borne by

the Railways. This has been reiterated by Railway Board’s

letter No.99/TC(FM)/26/1 of 29/09/2000.

7.2.1) Procedure for Billing:

The pay bill for siding staff is irst passed in the

normal course. The same is then submitted to

Personnel Branch for adding the extra components

like Incidental expenses, Leave Salary, Contribution

to SRPF etc. After addition of these elements, the bill

is sent to Accounts ofice for raising the bill on theparty.

7.2.2) Disputes arising in Staff Bills:

Some of the common disputes arising between

Railways and parties on staff bills are as under: -

i) Staff is billed for as per ‘ Sanctioned

Strength’ whereas salaries are drawnas per ‘ Men on Roll’.

ii) Sidings provide accommodation in

some cases to Railway Staff. The staff

posted gets transferred but fails to



260


vacate the quarters. The new staff

coming in his palace is entitled for and

claims HRA, which is paid by Railways,

and the party is also billed for the same. The siding however is not due to pay to

the extent it has provided quarters and

hence disputes take place.

iii) Payment of overtime is another core

issue. Since rakes arrive at odd hours,

Railway staff is due to claim overtime

beyond normal duty hours even if theyhave not had to work during their normal

hours of duty. In some cases the OT

charged is more than the wages drawn.

8) Wagon Repair/Loco Hire Charges:

This constitutes a very minor element of XBR. The bills for

these charges are raised as and when they are received fromthe concerned executive. No major problems are faced in

their recovery.

9) Maintenance Charges of ROBs, FOBs and Level Crossings:

No speciic orders from the Board were traceable regarding

maintenance charges of ROBs and FOBs. However, as per the

standard format of agreement signed with the GovernmentAuthorities. It is to be levied upon with the provision of

revision as and when considered necessary by the Railways.

Regarding Level Crossings, Para 1851 of the Engineering

Code states that in cases where extra establishment is

engaged in connection with the maintenance and operation

of any deposit work (e.g. a gateman engaged for operating

the gate of a level crossing constructed at the cost of anotherGovernment Department/Private Party), the actual pay

and allowances of such establishment, together with such

additional charges as are prescribed in Para 575 of Indian

Railway Establishment Code, should be recovered. Besides,



261

Bills Recoverable

as per the standard format of agreement with the sidings,

maintenance and cost of establishment for the level crossings

within the siding limits are to be borne by the applicant.

10) DESPATCH:

It is to be conirmed that the bills prepared are dispatched to

the concerned party in time.

11) PREPARATION OF JV:

JV’s to be prepared after raising of bills and receipt of

payments thereon. For adjustment of bills with Governmentbodies JV’s are required to be prepared after receipt of

acceptance of bills.

12) MAINTENANCE OF SUSPENSE REGISTER:

The Suspense Head DR/BR is to be debited for the amount of

bills raised to various parties for different facilities provided,

and Credited for the amount realized.

13) WATCHING / CHASING RECOVERIES:

The bills so raised are required to be reviewed for receipt of

Payment. If there is any delay/dispute by the party concerned

the same is required to be resolved through telephonically/

correspondence and if necessary by deputing the staff of XBR

section for settling the dispute.

14) PREPARATION OF ACKNOWLEDGEMENT:

After ensuring the amount billed has been realized i.e. DD/

Cheque etc. received from the party concern same is forwarded

to Divisional Cashier Bhopal for encashment. Copy of the

same endorsed to party concern as an acknowledgement.

15) ENTRIES IN CONCERNED REGISTERS:

Entries for raising of bills and amounts realized are to be made

in registers maintained for the purpose, i.e. Siding Register,

Repairs & Maintenance register etc. Party wise accounts are



262


required to be maintained to provide information regarding

amount billed, realized, outstanding if any etc. at a glance, at

any point of time.

16) RECONCILATION WITH BOOKS SECTION:

The amount booked to the suspense heads is to be reconciled

with the book section EVERY MONTH.

17) PREPARATION OF STATEMENTS:

Preparation of Fort Nightly. Monthly, quarterly, and half-yearly

statements of suspense heads i.e. Demands Recoverable andBills Recoverable (not treating as Suspense heads) , sending

the same to concern executive , as well as to FA&CAO, as per

the schedule time.

18) Procedure for Test-Check:


thorough examination of facts and igures embodied invarious documents brought under test check, be directed





particularly be conducted at least once in a month by SO and

all oficers. The test checks should not be of routine naturerather they should focus on system improvement, procedural




- [Para 803 A1]




given below:-



263

Bills Recoverable

S R N

O .

Item of

work

test

checked

Extent of

Test check

prescribed

Particulars

of vouch-

ers elected

for testcheck

Name of the

SO/SSO (A)

who had test

checked theitem

R e s u l t o f T

e s t c h e c k

Whether the

d i s c r e p a n c y

in col.6 has

been pointedout by the

s u p e r v i s o r y

staff

1 2 3 4 5 6 7














The observations as a result of the test check should

be clearly indicative of the appraisal by the checking

authority of the quality of performance of the clerks

whose work came up for test check.

18.2) Test- Check of registers:

Another important item of test check is the inspection

of different registers by the Gazetted Oficers. The

intervals at which different registers maintained in

Accounts Ofices should be put up for inspection by

Oficers.



264


18.3) Periodicity of submission of Test- Check oregister

to Ofcers:

Every test checks register should be provided with

an inspection sheet below the front page indicatingthe month of test check, date on which put up and

the date reviewed by the Oficer concerned. The test

check registers of Section Oficers and Senior Section

Oficers should be put up to the Branch Oficer on the

10th of each month indicating the test check done on

the work of clerk in the preceding month for review




Chapter 9

BOOK SECTION

1) Procedure followed before preparation of cheques / In

lieu cheques.

The passed CO-7 printouts along with relevant vouchers are

received from various Sections for arranging of payment.

On receipt, they are entered into a register meant for the

purpose. The CO-7s are scrutinized and based on the sectioncode a summery is generated. Subsequent to the summery

generation, cheques are printed. The Cheques duly stamped

and signed by a competent authority, are then sent to pay

ofice. Before dispatching to the pay ofice, the cheques

particulars are recorded in a register maintained for the

purpose. The pay & cash ofice provides the acknowledgement

of the cheques mentioned in the register to the books section.A soft copy is sent to the concerned bank for facilitation of

payment where ECS & EFT is chosen as mode of payment. The

sponsored bank credits the paid amount in the bank accounts

of employees in their respective Banks.

NOTE : Now in most of the accounting unit this process is carried

out on AFRES and printing of cheques is computerized. The

concern sections after signing of CO-7 by the oficer, dispatchit on AFRES by conirming the CO7 so that the data of CO7

on AFRES is passed on to Books section and physically send

the C07 and voucher to Books sections. While preparing the

summary Books section arrange the physically received

CO7 ensures the completeness of CO7 and vouchers for its

payment and selects the C07 number in AFRES to include

in cheque summary. When the requisite CO7s are selectedcomputerized cheque summary is generated. After generating

cheque summary cheque printing is also carried out on AFRES

by using continuous cheque stationery for various treasuries

operated in the accounting unit.

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266


2) Preparation of In-lieu Cheques:

In lieu cheques are prepared and re-issued to the parties

where cheques are either lost or received back in the books

section for effecting corrections of any nature like error inaccount holders name, wrong treasury or invalid cheques.

However, where a cheques is lost or burnt or can’t be produced

physically to the section, an indemnity bond is required to be

executed by the party. After getting the conirmation from

the concerned bank about the cheque being yet realized, the

in lieu cheque is issued. In all other cases, where the issued

cheques are available and can be presented to the bookssection, the in lieu cheques are issued with no requirement of

execution of indemnity bond. The In-lieu Register is recorded

wherever an in-lieu of cheque is issued.

NOTE : Issue of In-lieu cheques is also carried out on AFRES by

generating the summary of such cancelled cheque and its in-

lieu cheque.

(2.A) Preparation of Cheque indents:

The indents for the following year for MICR & non-

MICR Cheques are submitted to FA & CAO (Books)

every year. Quantity is arrived, taking the actual

consumption of cheques during the past few years.

(2.B) Issue of advice to Banks for Cheques books

brought in use The advice regarding the cheque book currently is in

use is required to be sent to Banks immediately after

using the new cheque book.

(2.C) Sending of Specimen signatures

Specimen signatures of accounts oficers who are

authorized to draw payment are required to be sentto the RBI, SBI and other treasuries concerned as and

when the oficials are transferred from and to the

ofice. Each authorized oficer is allotted signature

code by HQ. As and when oficer is transferred to

other unit, this code is cancelled.



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Books Section

(2.D) Maintenance of Ex-chequer

The exchequer (cash authorization by RBI through

Rly Board/HQ) is allotted for every quarter by the

HQ (FA & CAO/BOOKS) and it is intimated to allthe concerned units. Total expenditure incurred

to the date should be compared with Allotment of

funds on daily basis to avoid a situation wherein the

expenditure starts exceeding the prescribed limit of

funds. SR.DFM is intimated timely regarding status of

Ex-chequer. Besides, Cashbook igures are reconciled

with the igures appearing in the Ex-chequer register.A day-to-day exchequer position is maintained in the

register.

3) Remittance transaction

The transactions between the railways on the one hand and

departments of central and state government on the other

hand are known as remittance transactions. The followingheads of accounts are operated to record the remittance

transaction:

a. Reserve Bank Suspense

b. Remittance into bank

c. Cheques and bills

d. PAO suspense e. AG suspense

f. Remittance accounts with Defence and postal

g. Reserve Bank Deposit

3.A Reserve Bank Suspense:

The transactions that originate in the books of defence,Postal department, and ministry of external affaires or in

DGS&D and get adjusted in the books of railways are settled

through reserve bank of India. The suspense head RBS is

operated to record the inward transactions intimated by



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the departments mentioned above. All items under the RBS

should be cleared by the closing of March accounts, however

in case of any uncleared balance in the head at the end of year;

the debit balance is transferred to miscellaneous advancerevenue while credit balance is to be transferred to deposit

miscellaneous account.

3.B Remittance into Bank and reconciliation

This account is a suspence head under major head “L Suspence

& Miscellaneous” and intended to record the remittances

made into banks and to watch their realization.The amount deposited into banks, as adviced by chief cashier/

paymaster, are debited to “Remittance into Bank” through

general cashbook and credited to “Revenue/Service head”.

Station earnings are remitted into banks in two ways. In the

irst instance, some stations may directly remit the cash into

bank while in other stations may forward the cash to cash

ofice through trafic cash safe and the chief cashier/paymaster deposit cash in the bank. While depositing the cash

in bank, “treasury remittance notes” are prepared to obtain

acknowledgment from the banks. Sometimes instruments

like cheques and DD are received in accounts ofice for

realization. They are sent to cash ofice/pay ofice mentioning

the head of allocation to which amount should be credited. In

reciprocation, Cash ofice/pay ofice sends one copy of Bankacknowledgement to account ofice of challans, remittance on

daily/weekly/fortnightly basis as possible. On receiving the

cashbook, entries made in the book are checked in respect

of the concerned challan numbers and amount. Thereafter,

a cash JV is prepared by debiting to remittance into bank

“00867009” and crediting to revenue or service head. After

inalization of cashbook, a JV and an ATD is prepared by minusdebiting to “00867011” and debiting to HQ. In the books of

HQ, which receives the ATS from divisions, workshop units,

construction units, and the statement of remittances into

bank, allocation head “00867009” is charged through a JV



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Books Section

.On receipt of clearance memos from RBI and the focal point

branches in respect of cash and cheques, DD deposited into

bank, books section prepares a JV debiting remittance into

bank “00867011” and crediting to reserve bank deposit. Thebalance under the head “remittance into bank” “00867009”

represents the cash or cheque deposited into bank but

not acknowledged by them. Balances in the allocation

“00867011” represent the cash or cheque deposited in bank

and acknowledged by them. The item mentioned in allocation

“00867009” and allocations “00867011” are matched and in

case of any unmatched item and remained uncleared; writingto RBI for clearance of the same.



270


From the above, it is observed that there are four sources

of receipts against remittance into bank (RIB). For all

the receipts made during the month, RIB is debited and

corresponding credit is given to inal heads by concernedunits / section. For TC, RIB is debited and minus debit to unit

concerned is given.

All the MRT and MR are fed in the HQ A/C ofice (ACCESS),

wherein the summery of MCR is generated. Also, all the

summary for the day of cash extract is fed in excel sheet to

arrive at cash as per cash extract for month.

Challans for various sources are fed in the AFRES and the

same are reconciled with MCR and Cash extract / TC igures to

ensure that there are no missing challans. Any discrepancies

noticed are brought to the notice of cash ofice and is rectiied.

The total igure in the cash extract, MCR and TC should

reconcile with the Debit booked under RIB during the month.

Credit portion consists of the following parts:

i. Remittances through challans

ii. Remittances through e-payment,

iii. Remittances through RTGS

iv. Challans consists of remittances made by cash

ofce to the bank.

v. E-payment consists of crediting the amount

under electronic system carried out by SBI,

Jabalpur and SBBJ, Kota.

vi. RTGS system also includes electronic

remittances carried out by Union Bank of India,

Rewa.

Entire statement of remittances made are consolidated bythe SBI, Focal Point Branch and sent to FA & CAO‘s ofice daily.

Day wise receipts of bundles from focal point branch

are feeded in the AFRES separately for challans, e-



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Books Section

payment Jabalpur, e-payment Kota and RTGS – UBI

Rewa.

Below is a low chart, which explains the low of whole

remittance system:

Day wise credits accorded by the focal point as per daily

bundle are entered manually into a register. This daily data

is reconciled manually with the monthly statement sent to FA

& CAO’s ofice by the focal point. This monthly statement is

called Detailed Monthly Summary (DMS).

The focal point branch also sends the day wise receipt to

Reserve Bank of India for crediting into the Railway Account.

RBI to FA & CAO advises the amount so credited day wise byRBI into the Railway Account through a statement called RBI

memo.



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Reconciliation between RBI memo and DMS

While preparing the RJV every month from RBI memo, it is

ensured that the amount so credited by RBI reconciles with

the DMS sent by focal point branch.

After all the challans, e-payment data and RTGS Data are fed

in the AFRES, is ensured that the AFRES data reconciles with

the DMS sent by the focal point.

The reconciliation between RBI memo with DMS AND DMS

with AFRES data are done in an excel sheet. Differences, if

any between the AFRES and DMS are brought to the notice

of SBI, Focal Point, who rectiies the data through a separate

bank authority called GAD. After rectiication through GAD,

RBI does the necessary rectiication in the RBI Memo in the

forthcoming month. Once all the debit and credit challans are

fed, matching of individual challans is done in the AFRES. The

factors taken into consideration during the reconciliation

are:

a. Station Code

b. Bank Code

c. Challan Number

d. Amount

List of unmatched debit and credit challans extracted out of

reconciliation are matched manually. ( Authority; FA& CAO/JBP LETTER NO : WCR/ACS-HQ/EFFY/

LTR-CIR./08-09 DATE 18.02.2009)

3.C CHEQUES & BILLS RECONCILIATION.

A statement of cheques issued is prepared with the help of

source data available in the section. The paid cheques data

is available at two levels; at the Divisional level and the HQlevel. The FA & CAO /BOOKS provides the data in the soft and

hard copy through ATC to concerned Division. This data is

matched with the paid cheques data available in the division.

A statement of mis-match items is generated to ind out the



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Books Section

reasons only for those cheques, which do not tally. After

inding out the reasons the issued/paid data is modiied

suitably and matched again to see there is no item mis-

matching. While inding out the causes for mis-match extradebits are either transferred to respective units or RBI is

advised to withdraw debits from the debit scroll accordingly.

The basic documents from which reconciliation is done

are:-

a) Cash Book (CHEQUES & BILLS FIGURE)

b) Computerized cheques summary prepared by

Cheques Section

c) JV gures

The reconciliation is on the basis of cheques issued statement

prepared by converting the source data of cheques section.

The database of cheques section is based on cheques numbers

fed before printing. Therefore, the igures appearing under

head “00867002” of cheques and bills represents chequesissued igure and should be equal to total of that. The

igures appearing under head “00867003” cheques and bills

represents cheques cancelled or paid cheques igure. The

differences of the allocation head “00867002” & “00867003”

represent the balance igure in the head “cheques & Bills”.

3.D PAO SUSPENSE: PAO SUSPENSE head is operated to settle the transaction

with central government departments.

3.E AG SUSPENSE:

AG SUSPENSE is operated to settle the transactions with the

state government departments.

3.F REMITTANCE ACCOUNTS WITH POSTAL AND DEFENCE:

This head of account is operated to record the transactions

originated in the books of railways and inally adjustable

in the books of defence and postal department. Advance



274


schedules are sent to the account oficer of these departments

showing the number, particulars and amount of each voucher

in respect of which debit is to be transferred to RBI. On receipt

of the memo of clearance necessary adjustments are made inthe inal head of accounts.

3.G Reserve Bank Deposit:

This head is operated upon to record transactions in

connection with remittance made into bank/ cheques

encashed and transaction settled with non railway

government department. The adjustments are made throughRBI. The payment to a retired railway employee is arranged by

nationalized bank on the basis of pension payment authority

issued by the railway. The debit in the respect of pension

payment is raised by the bank through RBI which is entered

into the debit side of abstract “L” and credit side to reserve

bank deposit. Before the closing of accounts each month the

balance under these heads is reconciled with general booksand schedule is prepared showing the transaction with RBI.

The balance under this head is closed to government at the

end of year.

4) Transfer Transactions:

The transactions which are settled by way of book adjustment

between two separate accounting units within the samerailway or between two different railways are known as

Transfer Transactions and needs to be kept distinct from

normal transfers.

The following heads of accounts are operated to re-

cord and adjust transfer transactions.

a. Transfers, Railway Revenues} b. Transfers, Railway Capital} for transactions involving

revenue transactions in the Capital accounts books

and vice versa



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Books Section

c. Transfer “A” Divn. to transfer the transactions

originated in one Accounting unit to the other

accounting unit to which It pertains.

d. Transfer “B” Divn to transfer the transactionsoriginated in one Accounting unit to the other


e. Transfer “C” Divn to transfer the transactions

originated in one Accounting unit to the other


f. Transfers Railways to adjust the transactions

between zonal railways and Production units

“A” Rly Transfers Railways to adjust the

transactions between zonal railways

and Production units

“B” Rly Transfers Railways to adjust the



“C” Rly Transfers Railways to adjust the



Transactions arising in the accounts of one accounting unit

which are adjustable in the accounts of another unit within

same railway or between two railways should be transferred to

the letter by either operating the head “Transfer Divisional”

or “Transfer Railway” depending on the case may be. A

transfer certiicate is prepared and issued in form “ A 406”

in triplicate if a foreign railway is involved or in duplicate if

the same Railway is involved. Transfer certiicate against a

particular accounting unit should be serially numbered. Every

accounting unit should ensure that there should be no breaks

in serial numbers and if any break is noticed, the concerned

should call for missing transfer certiicate immediately. Two

separate registers are maintained for recording outward

transactions and inward transactions. Before the closing of

cash book for the month various section prepares TC and



276


handed over to books section for entering in register and

dispatch to responding unit. In case of inward transactions,

Books section enters the same in inward register and gives

it to the concerned section for acceptance. In order to ensurethat the adjustments are carried out concurrently both by the

originating and responding unit, it is necessary to carry out

the adjustment without delay. Any delay in the adjustment

will not only adversely affect the budgetary control but will

also lead to distortion of accounts. In order to ensure that

no transaction remain unadjusted for long, the accounting

units meetings to reconcile transfer transaction are held atthe end of accounting quarters of June/ September and at

the end of three bi monthly endings November, January, and

march. The above reconciliation meetings are held at zonal

railway HQ and also zonal railway should conduct a separate

a transfer divisional meeting for the same. During the

meeting the representative of zonal railway meets together

and reconciles the igures. The balances under transfertransactions or transfer divisional or brought to nil at every

quarter / bi-monthly ended month. Disputed items if any

inally adjusted in March account. The purpose of closing the

balances to “NIL” is to ensure that the transaction pertaining

to a inancial year is adjusted in the very same year. This also

ensures that all expenditure is booked to inal head of account

so that accounts of railway relect true state of affairs.

5) Reconciliation of Pay Master’s Cash Book

Reconciliation of pay master’s cash book is done to ensure

that the cheques favoring chief cashier for disbursing of the

bills to the parties included in the Abstracts of bills (A.1107)

popularly known as CO-7 BILLS, have correctly been

accounted in the chief cashier’s cashbook. This reconciliationis done on monthly basis and purpose of this reconciliation is

to ensure that the amount of bills passed in a month does not

exceed the exchequers provided for.



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Books Section

6) DEBT HEAD REPORT: form ‘A’ 749

A Report on the balances under the “Debt Heads” and

“Remittance Heads” is prepared after the closing of March

accounts by various units at Divisional, Workshop andConstruction level in the form ‘A’ 749.The reports are

then sent to the FA & CAO for compilation from where it is

submitted to Railway Board. This report is called the Debt

Head Report. The report contains the outstanding balances

with explanations for important variations from the previous

year’s balances and comments on the eficiency of the

balances at the end of the year under review.

Following ‘Debt’ and ‘Remittance Heads’ are reviewed in the

‘Debt Head Report’:

i) ‘F’ Loan and Advances

ii) ‘I’ Small savings.

iii) ‘J’ Reserve Funds.

iv) ‘K’ Deposits and Advances.

v) ‘M’ Remittances.

Adjustment Accounts with Postal Department.

Adjustment Accounts with Defense Department.

vi) PAO Suspense and AG Suspense.

In addition, the following information is also furnished

in respect of Deposit Miscellaneous:

(a) Opening balance as on Ist April, receipts and

disbursements during the year and closing balances

on 31st March under each classiied heads of Indian

Railway Deposits,

(b) Receipts and Disbursements during the year under

‘Cash’. The report is based on an analysis of various balances

enumerated above. The report, besides reviewing

outstanding balances, furnishes explanations for major

variations form the previous year’s balances and comments



278


on the eficiency of the balances at the end of the year under

review. Certiicates are furnished by the concerned in regard

that the balance shown in the report agrees with the General

books and are supported by details. A copy of the same isgiven to Audit for scrutiny and acceptance of the report.

7) Preparation of exchequer outgo monthly statement:

For the purpose of maintaining a concurrent record of Cash

outgo the net amount of bills passed for payment as entered

in the Abstract of Bills should be posted regularly in a

manuscript register classiied by Sub-head of Demand andSuspense head (eg. PF, Unpaid, Dep. Misc., F-Loans & Adv.

Etc.). The register should be totaled monthly Demand wise

and Suspense head wise and sent to FA&CAO.

( Para 1137 A1)

8) Preparation of Approximate and Actual Account Current

(monthly): An Account current is simply a statement showing the receipt

and disbursement of an accounting circle, duly classiied

under the prescribed heads of account.

(Para 324 A1)

Approximate Account Current is a statement of Approximate

Receipt and disbursement and is submitted by 5th

of thefollowing month that to which igure relate. In this Account

Current cash igure of adjustments are taken. Approximate

Account Current is prepared and sent to Railway Board

through FA&CAO and onward igures are communicated to

Finance Ministry to decide Ways & Means of Govt. for the

month.

9) DEPOSIT UNPAID:

When the Pay ofice returns bills to the Accounts ofice there

may be some unpaid items in them. The amounts so unpaid

will be remitted by the pay ofice in to the Bank accompanied

by a statement in Form A –1959 that is known as the unpaid



279

Books Section

list. All items of unpaid wages shall, as a rule, be credited to

“Deposit Unpaid Wages” (Para 316-A- I). Items of other than

wages are credited to respective deposits such as Dep “E” etc.

10) PASSING PAY ORDERS RELATING TO UNPAID WAGES AND

MAINTENANCE OF UNPAID WAGES REGISTER.

Unpaid wages list is prepared in three foils, one is retained

by the cashier who prepares it as his ofice copy, the other

is sent to the Books section in the Accounts ofice and the

third copy is sent to bill preparing unit. These statements

are iled & numbered consecutively to facilitate detection ofany missing sheets at any time. When a claim is subsequently

received for any sum remaining unpaid through a pay order

or C 4 the same is veriied with the unpaid wages register so

maintained and the fact of the subsequent payment is noted

against the entry of the relevant item. The pay order for

payment from Unpaid wages should be prepared after it has

been ascertained from the Pay department that the amounthas not already been disbursed by cashier out of his Imprest

or loating cash i.e. C 4.

11) RECONCILIATION OF UNPAID WAGES:

The reconciliation of unpaid wages is done separately for

debit and credit portion. The credits are reconciled with the

amounts remitted by the cashiers to Railway credit relectedin the Cash slip, with the totals of the unpaid statements

received individually from cashiers. The debits are reconciled

with the totals of CO7 passed and amount accounted under

Deposit Unpaid Wages in the general books.

12) Recoupment of cash Imprest (C4s) of cashiers:

After remitting unpaid salary/wages amount in to Bank /Treasury by the cashier but before sending of salary/wages

bills to Accounts ofice. If any employee approaches to cashier

with proper witness etc. the cashier out of cash available

with him can make payment to the concerned employee by

preparing C-4 voucher. After making payment by the cashier



280


it is sent to Accounts ofice for recoupment of payment made

by cashier out of cash available with him. Accounts ofice

by giving a remark against the unpaid list item of employee

concern.

13) EMD- passing of pay orders and maintenance of register:

Earnest Money Deposit (EMD) submitted by the contractors

at the time of tendering in the form of paper security or

deposited/remitted at station should be maintained in

manuscript register. It shoud be released /refunded on issue

of Letter of Acceptance etc. since as per latest Railway Boardguidelines EMD should not be converted into part security

deposit.

14) SURPRISE CHECK OF THE CASHIERS (PARA 1989 A1)

a. Check physical cash and note down the

denomination.

b. Check revenue stamps on hand and note downthe value.

c. Check C4s i.e. cashiers’ Imprest pending with

accounts.

d. Check whether there is any P-28 and note down

the value. Ensure that P-28s are those, which

are not already included in the C4s.

e. Value of extracts viz. On behalf payments

should be examined and value noted down.

f. Dues from cashiers, if any may be noted down.

g. Short passed/ Excess passed may also be

noted.

h. Item no.1 above may include soiled notes, keep

separate denominations for soiled notes while

recording item no: 1.

i. Check stamps on pay sheets and note down the

value.



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Books Section

j. Now, total cash available with the cashier

should be equal to sum of serial nos. 1 to 9.

k. Check the private cash declared by the cashiers

with the Register maintained for the purpose.

l. Check the safe seal Register.

m. Checking of the undelivered cheques with the

cashier.

n. The checking of checks or miscellaneous

receipts deposited by the various parties

remitted properly.After exercising the above checks cashier’s account (P6) is

prepared.

Extract from Cashier’s Cashbook subsequent to last P4 (Bill

returning advice) accepted by DC/Pay and his liability is

adjusted. Extract PMR No and amount in column no. 2 and 3

(column no. 1 is for date).

Examine the vouchers and identify the unpaid amounts in

Col.4.

Ensure no voucher is older than one month from the date of

PMR.

Identify vouchers of different accounting units and show

distinctly.

v. Having examined the above, record pending liabilitymonth wise and accounting unit wise accordingly.

vii. If any pending paid vouchers are on hand for

which P4 has been prepared but not given

to DC/Pay, work out his liability minus receipt

vouchers is equal to current liability.

viii. Compare the amount under column no.4 withSr.No.10 and certify.



282


In addition to above, the following points may also be

checked.

A. Cashiers’ Ledger should be checked to tally the

liability of the cashier on that day.

B. C4 Recoupment Register should be checked to

ensure the number of C4s given for recoupment

by the cashier.

C. Vouchers handed over by the cashiers to

stations for payment should be checked with

handing over summary and handing over form

(HO) duly signed and acknowledged by SM to

whom it is handed over.

D. Cheques District should not have cheques on

hand for more than ve working days.

E. Returned Cheques Register should have entries

of returned cheques. The returned cheques

should be entered in outside ledger. Accountswill get NIL credit.

F. Cheques district should not have liability for

more than one month.

15) Accountal of Misc. Cash Receipts.

Every Pay ofice prepares a summery of all miscellaneous

cash receipts and sends it to the HQ along with all relevantchallans. HQ Booking section on receipt of the summary sorts

them out according to accounting unit-wise and sends the

vouchers to concerned accounting units to whom it pertains

along with an ATC giving credit to concerned accounting

unit and debiting HQrs. The ATC is accompanied with all

the relevant vouchers and date-wise totals of the amount

received. This section on receipt of the vouchers feed thedetails of the vouchers there in date-wise, allocating the

different heads of account to which it pertains to. Then a JV

is prepared to account for such miscellaneous receipts by

crediting respective heads of account like EMD, Abstract Z

etc. and giving (-) credit to TDHQ.



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Books Section

16) Imprest – Passing of First/Enhanced Imprest: Para 1050

- FI

An Imprest is a standing advance of a ixed sum of money

placed at the disposal of a branch oficer to meet the pettyofice expenses and emergent unforeseen expenditure. Pay

orders relating to such Imprest are received in accounts

ofice for payment. The following points are kept in mind

before passing such pay orders.

a) That the Pay orders are accompanied with the

copy of sanction of the competent authority

duly attested by him.

b) It has the concurrence of the Associate nance

branch.

Having been veriied the above stated points the

pay order is passed by debiting the head ‘00867201’

i.e. “Permanent Cash Imprest” and crediting head

‘00867002’ i.e. “Cheques & Bills”. If one time imprest isto be converted into regular imprest or if the amounts

of the imprest is to enhance the same procedure is

followed.

17) Maintenance of Capital and Revenue Ledger: F 310 A1

The Ledgers both Capital and Revenue (Capital Ledger for

capital transactions and Revenue Ledger for transactionsrevenue in nature) are posted monthly after closing of

the journal. The ledger relects various heads of accounts

recording all receipts and charges of the accounting circle

and also show the progressive balances under those heads at

the end of each accounting period.

These igures are the general books igures and are reconciled

with the individual balances relected under each head ofaccount.



284


18) Check List for Inspection of Cash and Accounts of a

Cashier:-

When the Accounts staff with the gazetted oficer visit Cash

ofice for inspection they should ensure the followings:

(a) Cash Balance of the Cashier has been done by

actual count.

(b) The bills in hand have been checked with

reference to the summary of bills.

(c) Any bill has been retained beyond the prescribed

period. (d) The payment has been property witnessed as

observed in the body of the bills.

(e) A summary of unpaid bills has been prepared.

(f) The cash Balance has tallied with the amount

of unpaid bills in hand.

(g) While determining correct book balance andthe balance of Cash-in-Hand on the date of

verication the following factors, have been

considered or not :

I. Challan-In-Transit: (The amounts of

challan issued by D.C. but received /

taken into the Cash Book by Cashier)-

Verication should be done taking intoaccount the last complete challan only.

II. List-In Transit: (Credit taken by the

cashier on submission of paid vouchers

to the D.C. but not scrutinised and

returned to Accounts ofce by D.C..

List in transit should be reconciled with

D.C.’s Balance by the inspecting ofcial.

III. Dues retained by D.C. : ( Full amount

corresponding to the bills debited to the

cashier both in D.C.’s balance sheet and

in Cashier’s Cash Book not made over to



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Books Section

the cashier) such dues are to be treated

as Assets in Cashier’s Account.

IV. Payment made through Debit Forms:

It is to be ascertained whether Debitsforms have been issued properly and on

getting the bills back after payments,

the Debits Forms have been cancelled

.Whether Debits Forms are issued

serially / sequencially, whether the

ofcials receiving payments through

Debit Forms have signed the Debit Formsunder proper seal and signature, Debit

Forms payment should be shown in the

Assets side of the Cashier’ s Balance

Sheet.

V. Cash on account of M.O.Returned:

Money order register to be checked and

amount returned included in the liabilityof the cashier.

VI. Amount shown as unpaid in the list of

paid vouchers : Has Cashier deposited

unpaid amount to D.C. through M.R. or

not ?.

VII. Amount given by D.C. in advance ofcorresponding Bills:- Do the accounts

of cashier include this amount in his

liability ? The amount is a liability of the

cashier because the foil has not been

received through D.C.’s challan.

19) Procedure for Test-Check:







286





particularly be conducted at least once in a month by SO andall oficers. The test checks should not be of routine nature





[Para 803 A1]




given below:-

SR

NO.

Item of

work

test

checked

Extent

of Test

check

pre-

scribed

Par-

ticulars of

vouchers

elected

for test

check

Name

of the

SO/SSO

(A) who

had test

checked

the item

Result

of

Test

check

Whether the

discrepancy in

col.6 has been

pointed out by

the supervi-

sory staff

1 2 3 4 5 6 7


oficial, the test check is required to be made in accordancewith these orders. The entries made in the register













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Books Section




test check. 19.2) Test- Check of registers:

Another important item of test check is the inspection

of different registers by the Gazetted Oficers. The

intervals at which different registers maintained in

Accounts Ofices should be put up for inspection by

Oficers.

19.3) Periodicity of submission of Test- Check oregister

to Ofcers:

Every test checks register should be provided with

an inspection sheet below the front page indicating

the month of test check, date on which put up and

the date reviewed by the Oficer concerned. The test

check registers of Section Oficers and Senior SectionOficers should be put up to the Branch Oficer on the

10th of each month indicating the test check done on

the work of clerk in the preceding month for review


Important tips for AFRES Users:-

•

Each and every user in the section includingS.S.O. is allotted separate ID name and

password. Supervisor of the section will ensure

periodical changes of password for each and

every user of Books section. The entry of such

effect is to be kept in the manuscript register

opened for the purpose. The period for changing

in password will be at the interval of at least 15days .

• After customization of AFRES programe, SSO

(In charge of the section) will run Audit trail of

their section. This is to be run at the interval



288


of 15 days and obtain signature of concerned

ofcer. SSO will be given rights for accessing

and running Audit trail.

• It is also to be ensured by supervisor of the

section that the ID and password is not to be

shared with any other person.

• If there is any modication in any rules/

programme due to Railway Bd’s policy/circular

/orders or due to any other reasons the

modication in the AFRES programe be doneafter proper testing of such changes is carried

out and results of such effect should be recorded

before nal implementation of application.

Note: The detailed procedure of working on AFRES is annexed as

AFRES USER MANUAL.



Chapter 10

CHECK LIST FOR WORKSHOPS

1. Workshop Manufacturing Suspense (WMS)

• Whether WGR is being reviewed monthly.

• Work orders with no booking for more than three

months are reported to CWM.

• Monthly review of deposit works on hand/bookings

and custody of deposits.

• Cases of bookings on closed work orders.

• Para 1224 W on Review of WMS to be followed.

• Analysis of unit cost of repairs should be carried out.

Review of Balance under “Workshop Manufacture Suspense

Account”. The balance under the ‘Workshop Manufacture Suspense

Account’ should be reviewed monthly to see:-

(1) that all the items are current and have been

undertaken after the issue of a proper work order,

under the sanction of a competent authority;

(2) that the details consist of nothing else except

labour, material and work on cost charges expended

on uninished jobs or completed jobs awaitingadjustment;

(3) that there are no credit items in the detail of balance

and if there are any such items, they are noted for

immediate adjustment;

(4) that in the case of jobs undertaken for outsiders, a

suficient deposit has been made, where such a deposit

is required by rules, and on the irst appearance

of a work it is seen that an estimate is on record,

containing the extra percentage charges required

under the rules, and accepted by the party ordering

the work; and

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290


(5) that there are no ineficient balances and the

periodical adjustments in respect of “overcharges

and undercharges” under the oncost, manufacture

and repair work orders are carried out regularly aslaid down in Chapter X and the outstandings are not

allowed to accumulate.

The results of the review should be put up to the Financial

Advser ad Cef Accots Ofcer at least oce a ear.

• The Suspense Heads are certain intermediary/

adjusting heads of accounts operated in GovernmentAccounts to relect transactions of receipts and

payments which cannot be booked to Final Head

of accounts due to lack of information as totheir

nature or for other reasons. These heads of accounts

are inally cleared, when the amount under them is

booked to their respective inal heads of accounts,

by ‘Minus Debit’ or ‘Minus Credit’ suspense heads. Ifthese amounts remain un-cleared,the balance under

the ‘Suspense Heads’ would go on accumulating and

would not relect Receipts and Expenditure of Indian

Railways (IR) accurately. The balances under each of

the Suspense Head should be reconcilied and cleared

at the end of the inancial year.

2. STORES

• AAC to be arrived at with due diligence.

• ABC analysis of stores should be carried out.

• Issue note (SHOP/Stores)/Copy Pairing is upto date

with NIL differences.

•

Whether Register of Provisional Adjustmentsmaintained.

• Oldest items awaiting adjustment.

• Store Suspense should be as minimum as possible.



291

Check List for Workshops

• Analysis of non-moveable and less movable items is

being done periodically.

• M&P procurement is done with due diligence.

3. GATE ATTENDANCE

• OPENING/CLOSING Procedure of Gates Whether any

Loopholes ?

• Clocks are in order or not ?

• Whether GA Cards Punched Four Times.

• Number of people treated absent after Window GateTime is Over (30 minutes/3 minutes).

• Absentee Register maintained or not

• Additions/Deletions of attested or not

• Number of Duty Certiicates issued/Shops having

highest Duty Certiicates & their out turn.

4. INCENTIVE

• Excess Time Cards (Plus Cards) issued and whether

any shop showing regular or excessive issue of plus

cards.

• Whether all completed job cards arrive within 48 hrs.

of completion of job.• Whether any shop regularly showing proit >50% and

has allowed time reviewed.

• Whether allowed time has been revised due to

improvement in technology through new machines.

• Idle Time Bookings – How much on account of tools/

want of work ? Whether deductions done from

supervisors salaries ? (2% limit)

• Systems of preventive machine maintenance is in

place.

• Whether Master Planning Card made available to

WAO & all allowed time Checked in Rotation.



292


5. OTHER ITEMS

• Non Stock items Review/Conversion to Stock

• Shop loor Veriications/Custody to Stock.

• Fluctuations in Unit Cost to be watched.

• Leakages of scrap to be eliminated through

qualiication from point of generation of Scrap.

• Sensitivity Analysis is to be done for inspection of

Workshop.

• Lateral transfer of store may be indicator of poor

planning.

• Review of staff should be done from time to time

taking into account the work load and off loaded

work.

• Asset Register should be updated from time to time.

• Special studies should be carried out on different

topics every month.



Chapter 11

CHECK LIST FOR WORKSHOPS

The Suspense Heads are certain intermediary/adjusting

heads of accounts operated in Government Accounts to

relect transactions which cannot be booked to Final Head

of accounts due to lack of details at that point of time. These

heads of accounts are cleared, when the inal head is known,

by ‘Minus Debit’ or ‘Minus Credit’ to the suspense heads.

1. Suspense Accounts Operated by Railways

IR operates the following main Suspense Heads:

Under Revenue

Receipts:

. Trafc Accot, ad . De-mands Recoverable.

Under Revenue

Expenditure:

i. Demands Payable, and ii. Miscella-neous Advance- Revenue

Under Capital Expenditure:

i. Purchase Suspense

ii. Stores Suspense

iii. Workshops Manufacture

Suspense iv. Miscellaneous Advances-

Capital

For Adjustment of Remittance Transactions:

i. Reserve Bank Suspense, ii.Remittances into Bank

iii. Cheques and Bills etc

For settlement of inter governmental transactions:

i. PAO Suspense

2. Revenue Receipts

For recording the revenue receipts, two suspense heads

namely Trafic Account and Demands Recoverable are

operated. If these amounts remain un-cleared, the balance

under the ‘Suspense Heads’ would go on accumulating and

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294


would not relect the Receipts accurately. Large outstanding

amounts under different suspense heads in trafic accounts

relect unrealized earnings, therefore, blockage of the capital.

3. Trafc Accot

Trafic Account is a Suspense account operated for the

purpose of recording the revenue earnings on accrual basis

in a month’s account to which they pertain and also for

watching the progress of their realization. The outstanding

balance represents unrealized earnings therefore exhibited

on the Asset Side in the Balance Sheet.

4. Freight Outstanding

“Freight” is the charges levied for the carriage of goods

including transshipment charges. Freight Outstanding will

arise when the way-bills / invoices have been accounted for

in the books of Railways (Station Balance Sheet), but freight

charges have not been realized. Generally around 50 percent of unrealized earnings of railways are on account of Freight

Outstanding. Therefore, fortnightly review is necessary.

5. Admitted Debits

Every debit raised by the Trafic Accounts ofice on the

station on account of error in charging fare or freight, short

remittance of cash etc. accepted by the station is known asAdmitted Debits.

6. Objective Debit

Every debit raised by the Trafic Accounts ofice on the

station on account of error in charging fare or freight, short

remittance of cash etc. but not accepted by the station and

kept pending for want of clearance through withdrawal is

known as ‘Objected Debit’.

7. Wharfage and Demurrage

Indian Railways Commercial Manual deines “Wharfage” as

the charge levied on goods for not removing them from the



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Trafic Suspense

railway after the expiry of the free time for such removal.

“Demurrage” means the charge levied for the detention of any

rolling stock after the expiry of free time, if any, allowed for

such detention.Monthly reviews should be carried out to clear the

outstanding.

8. Demands Recoverable

Demands Recoverable is a suspense head operated to bring

into the books of Accounts on accrual basis all the dues to

the Railways within the same inancial year which were notrealized during the year. The closing balance under this head

represent unrealized amount in the form of outstanding

Demands Recoverable which will be exhibited on Assets side

of the Balance Sheet of Indian Railways.

There should be proper mechanism to watch whether bills

are properly raised and realized during the year of incurrence

of expenditure.

Review of Bills Recoverable register should be conducted

monthly .

9. Remittance Transactions

Transactions between the Ministry of Railways and Other

Ministries or States for which the accounts are not maintainedby themselves are ‘Remittance Transactions’. Two suspense

heads (i) Remittance into Bank and (ii) Cheques and Bills are

maintained.

10. Remittances into Bank

This is a Suspense Head operated to record the remittance of

earnings into the Banks. This Suspense head is debited withamount of all Remittance Notes by crediting the Appropriate

Revenue Service head. Each Bank with which the railway has

transactions sends daily statement showing the amounts

deposited by the various departmental oficers on behalf of

Railways. The Credit Scrolls should be checked immediately



296


on receipt of the counterfoils of cheques and Cash Remittance

Notes. At the end of the month the total amount of the

remittance acknowledged by the Bank will be debited to the

Head ‘Reserve Bank Deposits (Railways)’ by contra creditto ‘Remittance into Bank’. The balance under this suspense

head, therefore, represents the amount deposited into bank

but not acknowledged by them. The balance under this head

i.e. Remittances into Bank should always be a Debit Balance.

Para 444 of Indian Railways Code for Accounts Department

Volume I envisages that reconciliation is to be done every

month by FA&CAO.

The Audit had revealed that the negative balances under this

head were mainly due to unidentiied and unlinked credits,

non reconciliation of balances and receipt of credit towards

freight charges through e-payments before accrual of debit .

11. Inter - Governmental Transactions

For the settlement of inter-departmental and inter

governmental transactions arising in the books of Railway

Accounts Ofices, PAO suspense head is operated. Outstanding

Debit balance under this Suspense Head would mean that

payments made on behalf of other Accounts Ofices are yet to

be recovered. Outstanding Credit balance under this Suspense

Head would mean that payments have been received by the

PAO on behalf of other PAOs which are yet to be paid. The

balance under this head is exhibited on the Liabilities side ofthe Balance Sheet.

12. General Observations

The increase in suspense balances was found mainly due to

the following reasons:

• Importance of clearance of suspense balances

was not fully realized by the Executive/AccountsDepartments.

• Expenditure was allocated indiscriminately to

suspense heads without making efforts to allocate

the same to the inal heads of account.



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Trafic Suspense

• The year wise break up of balances under various

suspense heads were not maintained as envisaged in

the Code.

• No proper action was taken to adjust them as early aspossible either by debit to the relevant inal head or

by transfer to other accounting units to which they

pertained.

• Incomplete or incorrect postings in the suspense

register without suficient particulars/details etc.

resulted in dificulties in linking the items at the time

of clearance.

• Continued and effective review was not done to clear

the items resulting in items becoming old and dificult

to clear.

12. Points to be noted :-

1. The suspense balances under ‘Trafic Account’ on

account of freight outstanding, admitted debits,

objected debits, wharfage/demurrage and demand

recoverable need to be kept at minimal as it has an

impact on earnings of the Railways.

2. Monitoring mechanism for clearance of old suspense

balances needs to be strengthened at Zonal Railway

level. Corrective steps need to be taken for clearanceof very old items.

3. Correct posting with suficient details should be made

in the Suspense Registers. Item should be placed

under “Suspense” or written off with the Sanction of

the competent authority, if necessary.

“The important and signiicant areas of internal checks have been covered in thisHand Book. However, for detailed procedure, railway codes and process manualnotiied from time to time by Railway may be referred while examining theproposals.”

Railway Hand Book on Internal Checks

Documents

Transcript of Railway Hand Book on Internal Checks