Audit Manual

Ch.IV - Page 1 of 46

CONTENTS UPDATED MANUAL Paragraph Chapter I – Organisation Organisation

101 to 105

Chapter II – Departmental Regulations Powers and responsibilities of Principal Director of Audit Transfer of Charge Powers of Director / Deputy Director Fixing Headquarters and posting of IA & AS Officers Operation of posts of Audit Officer in lieu of IA&AS posts Entrusting the charge of Deputy Director to Audit Officer Appointment of Group ‘B’ Officers Distribution of work Handing over notes of officers and staff Tour Programme Returns and sanctions regarding transactions relating to property System of Payments to Group ‘A’ Officers Appointment of Non-gazetted staff Oath of Allegiance Conditions of service Award Scheme Promotion of an Asstt. Audit Officer as Audit Officer Transfers from one office to another Deputation Permission to join officially sponsored Organisations Permission to join Educational Institutions Representations Maintenance of Secrecy in official matters Conviction of Government Servants in a Court of Law Government Servants arrested on criminal charge Confidential Reports Gradation List Casual Leave Authority to sanction Casual Leave Station Leave

201 & 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231

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Compensatory Leave Special Casual Leave Restricted Holidays Passes / PTOs Custody of Passes and PTOs Verification of Passes and PTOs Passes and PTOs to IA&AS Officers Non-Railway Deputationists Passes on Sports Account Non-entitlement of concessions to Railway Audit Staff Availing of Passes / PTOs from outside Officers / Railways Declaration of family members / dependent relatives Counting of past service rendered in the civil offices for determining the class of accommodation Period of availability of Pass/PTO to those who are about to retire Medical attendance Residential Accommodation Travelling Allowance Children’s Educational Allowance, Reimbursement of Tuition Fee and payment of Hostel subsidy Advances Staff Associations Inspection of Principal Director of Audit’s office by the Principal Director of Inspection Annexure I (Para 204) – Powers of Director / Deputy Director incharge of Administration Annexure II (Para 209(b)) – Duties of Secretary to Principal Director of Audit Annexure III (Para 210) – (i) (ii)

232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252

Format I – Handing over report of Branch Officer Format II – Handing over report of SO / AAuO.

Chapter III – General Office Procedure Hours of work and holidays Closure of Government Offices in the event of death of high dignitaries Attendance Late Attendance Absence from Office Inward Dak Registration of Inward letters

301 (a) 301 (b) 302 303 304 305 306

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Disposal of letters Typing Work Stenographers Submission of files to Pr.D.A. / Directors / Dy. Directors Signing of letters Despatch of letters Stamp account Weekly Arrear Report of Letters Supply of copies of orders and circulars to various sections Maintenance of files Custody of confidential and secret files Maintenance of records Weeding and destruction of records Maintenance of registers – general instructions applicable to all registers Sectional register Calendar of returns Pending cases register Register of outward correspondence Register of reminders Register of Audit Notes and Special Letters Codes, Manuals and other publications Supply of Codes / Manuals at concessional rates to examination candidates Correction slips Office library Gazettes Furniture Dead stock register Telephones Newspapers and Periodicals Upkeep of Typewriters Office Orders and Office Order Registers Departmental Security Instructions Security arrangements of the office Closing of the Audit Recreation Club Issue of keys of tables, cupboards etc. and custody of duplicate keys Annexure IV (Para 306) – Central ‘A’ Dak Register, ‘B’ Dak Register of routine section & ‘A’ / ‘B’ Dak Annexure V (Para 314) – ‘A’ / ‘B’ Dak Arrear List Annexure VI (Para 316) – Model List of Major and Minor Heads by which

307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 (a) 327 (b) 328 329 330 331 332 333 334 335 336 337 338 339 340

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files should be classified Annexure VII (Para 319) – Statement showing the period of preservation of the various kinds of records maintained in this office which do not appear in Appendix II o the Railway Audit Manual Annexure VIII (Para 323) – Register of Pending Cases Annexure IX (Para 326) – Register of Special Letters / Part. I Audit Notes Annexure X (Para 328) – List of Code Books / Manuals etc. assigned to various headquarters sections for upkeep Annexure XI (Para 328) - Scrutiny and distribution of P.O.O.s by Headquarters sections Annexure XII (Para 331) – Scale of Furniture Chapter IV – Administration Administration Staff Proposals Creation of Posts Sanctions Register of Sanctions Sanctioned Strength Recruitment of Auditors, Clerk/Typists and Stenographers Recruitment of Group ‘D’ Relaxation of Age Limit Extension of time limit for joining duty for new recruits Appointments on Compassionate Grounds Recruitment against Sports Quota Offer of appointment and appointment orders Verification of Identity Communal Roster Training of Auditors Departmental Examination for Auditors Section Officer’s Service Section Officer’s Grade Examination (SOGE) Selection and training of candidates for SOGE Statement of Candidates for SOGE Withdrawal from the examination Conduct of the examination Grant of Leave to SOGE Candidates for preparation Pass and Travelling Allowance to SOGE Candidates Seniority in Section Officer’s cadre Revenue Audit Examination for SOs / AAuOs

401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427

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Conditions of eligibility to sit for the examination 428 Maximum number of chances 429 Incentive to Candidates passing the examination 430 Travelling allowance to the candidates for training 431 Training of candidates 432 Syllabus for examination 433 Statement of candidates permitted to appear in the examination 434 Departmental examination for promotion as Stenographer 435 Limited departmental competitive examination for matriculate Group ‘D’ 436 staff for promotion as Clerk/Typists Promotion of Auditors as Senior Auditors 437 Promotion of Clerk/Typists as Auditors 438 Promotion of Group ‘D’ employees 439 Officiating promotions in short term vacancies 440 Seniority 441 Confirmation 442 Transfers 443 Applications for employment elsewhere 444 Compulsory retirement 445 Pension 446 Family pension 447 Nomination 448 Settlement bills 449 Budget and Revised Estimates 450 Estimates for Deposits and Loans, Pensionary charges 451 Register of Expenditure 452 Register of contingent expenditure 453 Control statements 454 Register of liabilities 455 Appropriation Accounts 456 Appropriation Accounts of Pensionary Charges 457 Preparation and registration of bills 458 Abstract of attendance 459 Salary bills of Gazetted and Non-gazetted Officers 460 Signing of Pay Bills 461 Increment Register 462 Drawal of HRA & CCA 463 Income Tax 464 Recovery of rent for Railway Quarters 465

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Recovery Register Supplementary Bills Arrear Bill Last Pay Certificate Disbursement of Pay and Allowances Leave Maintenance and verification of Service Registers and Leave Accounts Office Order Books Travelling Allowance Advance of Travelling Allowance on Tour / Transfer Medical Attendance Rules Educational Assistance Reimbursement of Tuition Fees Hostel Subsidy Festival Advance Cycle Advance Table Fan Advance Passes/PTOs Grant-in-aid to Recreation Club Audit Bulletin Monthly Review Report on the activities of Administration Section Annexure XIII (Para 486) – Monthly Review of Activities of Administration Section

466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486

Chapter V – General Audit Procedure General Programme of Audit Periodicity of Audit Selection of Documents for Audit Procedure for Selection of Vouchers, Pay Bills etc. Requisition for vouchers Collection of documents Completion of Audit Audit enfacement Selection-cum-Audit Completion Register Progress Report Combined Monthly Arrear Report Quarterly Arrear Report Original Audit

501 502 503 504 505 506 507 508 509 510 511 512 513 514

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Current Review Post Review Raising and pursuance of objections Recovery register Review of working of Accounts Department Review of Register of Losses Office Manuals and Procedure Office Orders and corrections thereto Annexure I (Para 510) – Selection-cum-Audit Completion Register Annexure II (Para 511) – Progress Report Register Annexure III (Para 512) – Monthly Report on the state of work Annexure IV (Para 517) – Format for issue of Special Letter – Category ‘A’ Annexure V (Para 519) – Register of Review of Accounts Office Work

515 516 517 518 519 520 521

Chapter VI – Expenditure Audit General 601 Audit of Sanctions 602 Review of Permanent Sanctions 603 Audit of Estimates 604 Audit of Completion Reports 605 Tenders and Contracts 606 Record of Tenders and Contracts reviewed 607 Review of Implementation of Contracts 608 Audit of Contractors’ Bills 609 Measurement Books 610 Contractors’ Ledgers 611 Works Registers and Revenue Allocation Registers 612 Scrutiny of Financial Reviews 613 Review of Productivity of out-lay 614 Review of Major Works 615 Accounts of Sidings 616 Joint Station Accounts 617 Review of Registers of items under objection 618 Law Charges and Arbitration Fees 619 Audit of Journal Vouchers 620 Payment of Municipal Taxes 621 Recovery of water charges from Gazetted Officers occupying Railway 622 Quarters Review of Court Cases and Arbitration Awards 623 Land Register 624

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Rent on Railway Buildings Register of Buildings Annual Rent Return Account of the Residential Buildings Audit of Property Accounts Review of Suspense Registers Financial Assistance to Railwaymen’s Consumer Cooperative Societies Payment of subsidy to staff canteen Grants-in-aid Expenditure from Hospitality Fund Pay Orders / other vouchers not falling under any other category Bills Recoverable Audit of Stores Bills for non-stock items Audit Catering Accounts Audit of Fuel Accounts Audit of Coal Issue Notes Audit of Priced Ledgers Suppliers’ Bills Coal Handling Contracts Coal Handling Bills and Ash Pit Clearing Bills Sale of Coal Review of the Suspense Registers (Fuel) Electricity used as Locomotive power Annexure I (Para 607) – Register of Review of Contracts relating to Works and Purchase of Stores etc. Annexure II (Para 614) – Register of Productivity Test

625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 64 645 646

Chapter VII – Establishment and P.F. Audit General Audit of Sanctions Audit of Pay Bills Fixation of Pay on first appointment and re-fixation of Pay Officiating appointment Leave Salary Subsistence Allowance Dearness Allowance and other Allowances Payment of out-turn allowance to Signallers / Teleprinter Operator Provident Fund recoveries House Rent, Water and Conservancy Charges Electricity Charges

701 702 703 704 705 706 707 708 709 710 711 712

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Diet Charges Other Recoveries Recovery of Advances Scale Check Allocation Unpaid Wages Labour Pay Sheets Travelling Allowance Bills Points to be seen during the audit of Travelling Allowance Bills Pay Orders for Payment of unpaid wages Journal Vouchers Payments under Workmen’s Compensation Act Advance of Pay, Travelling Allowance, Leave Salary etc. Festival Advance Medical Attendance Bills of Gazetted Officers School Fee Bills Reimbursement of Tuition Fees Staff Benefit Fund Audit of Provident Fund Accounts Temporary Withdrawals from Provident Fund Final Withdrawals from Provident Fund Reconciliation of Provident Fund Ledger Accounts with General Books Interest Credits and Bonus Contributions Verification of Pensionable Service Audit of Pensions Family Pension Commutation of Pension Ex-gratia Pension Check of paid vouchers of pension Check of paid vouchers / gratuity Audit of vouchers relating to Family Planning Audit of Contingent Expenditure Fees and Honoraria Review of Scale Check Register / Cadre Register Leave Account Register of Irregularities, Losses and Overpayments waived – maintained in the Accounts Office Disallowance Lists Miscellaneous Advances including House Building and Motor Car

713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750

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Advances and Deposits Miscellaneous Cost of Order Police Register of Foreign Service Contributions History of Services of Officers of the Railway Department Audit of transactions relating to Deposit Linked Insurance Scheme Audit of Railway Employees Group Insurance Scheme Audit of Productivity Linked Bonus Bills Audit of charges debitable to 345-A & 345-B – Indian Railway Miscellaneous Railway Expenditure Chapter VIII – Books and Budget Including Appropriation Audit General Computerised Accounting System Sanctions Check of Journal Vouchers including scrutiny of Adjustment Memo Tracing the postings from Journal Vouchers into Journals Check of monthly accounts with schedules and Journals (Capital and Revenue) Pay Orders for payment of unpaid wages Budget Registers and Reappropriation Statements Check of vouchers in connection with inter-dominion transactions with Pakistan Government Review of Suspense Register Inter-dominion agreements, contracts having financial implications Register of (i) Irregularities (ii) Serious Irregularities (iii) Losses and (iv) Registers of overpayments foregone Review of Register of Major and Minor Deviations Reconciliation of unpaid wages with General Books General Cash Book Cashier’s Cash Book Divisional Cashier’s (including cashiers) cash book Review of Miscellaneous Advances and Deposit Miscellaneous Registers Review of Demands Payable Register Adjustment with other Government Departments Transfers within the Railways and Transfers with other Railways Branch Line Contracts Debt Head Report Capital and Revenue Accounts Finance Accounts Statement showing Transfers Without Financial Adjustments

751 752 753 754 755 756 757

801 802 803 804 805 806 807 808 809 810 811 812 813 814 815 816 817 818 819 820 821 822 823 824 825 826

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Statement showing calculations of Dividend Payabale to General Revenues Statement of Deferred Dividend Contingency Fund – Exhibition of transactions in the combined Finance and Revenue Accounts New Services not contemplated in the Budget Appropriation Audit Annual Budget – Revised and Budget Estimates Appropriation Accounts Check of Appropriation Accounts Check of Civil Grants: Loans and advances by Central Government Explanations in the Accounts Framing of Audit Comments on Individual Grants / Anneuxres etc. Annexure ‘A’ – Statement of Unsanctioned Expenditure Annexure ‘B’ – Statement of undercharges detected by Accounts and Audit and recovered Annexure ‘C’ – Statement showing remissions and abandonment of claims to Revenue Annexure ‘D’ – Review of Expenditure on Important Open Line Works and New Constructions Annexure ‘G’ – Block Account, Capital Statement (comprising loan account) Balance Sheet and Profit and Loss Account Annexure ‘H’ – Statement of Losses etc. Annexure ‘I’ – Statement of Irregular Re-appropriation Annexure ‘J’ – Statement of Misclassifications and other Mistakes Annual Statement of ‘Voted’ and ‘Charged’ Expenditure Statement Showing changes in Form and Classification of Accounts Statement of Stores and Stock Adjustment Account Statement Showing Percentage of working expenses to earnings Statement of credits to capital for retired assets (i) Profit and Loss Account of Catering Department; and (ii) Profit and Loss Account of Grainshops Statement of Suspense Balances Statement of ex-gratia payments to be shown as foot-notes to the Appropriation Accounts Statement of Defects in Budgeting Note on Control over Expenditure Audit Certificate

827 828 829 830 831 832 833 834 835 836 837 838 839 840 841 842 843 844 845 846 847 848 849 850 851 852 853 854 855

Chapter IX – Workshop Audit General Audit of Sanctions

901 902

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Audit of Estimates Audit of Completion Reports Stores Bills and Contractors Bills Audit of Incentive Bonus and Piece Work Bills Essentially Indirect Workers Bonus Bills for Maistries Bonus Bills for Chargemen Booking of overtime incentive and non-incentive sections of the workshop Muster Rolls, Labour Pay Sheets and time sheets Works Registers and Revenue Allocation Registers Miscellaneous Advances and Deposit miscellaneous register Workshop Manufacture Suspense Account Labour Sub-Ledger Stores Sub-Ledgers Workshop General Register On Cost Calculation of On Cost Proforma On Cost Distribution of On Cost Charges Out-turn Statements Workshop Account Current Reconciliation of Monthly Account of Stores with sub-ledgers Transfer Statements or Memo Advice Notes of Returned Stores Accounts, Numericals or otherwise of Stores received into Workshop and charged off to work orders but not actually used thereon Accounts of Materials Spare from Work Orders Accounts, Custody and Disposal of Scrap Material Recovery of non-ferrous turnings / borings from shop floor Records of Rolling Stock Review of Major Works undertaken in Workshops Record of Plant and Equipment Work Orders Proforma Capital and Revenue Accounts of Saloons reserved for the exclusive use of other departments Recover of Interest Charges on the capital cost of Postal Vans Review of Statistics of Periodical Overhaul and Cost of Unit Repairs Overhauling Saw Mill Account

903 904 905 906 907 908 909 910 911 912 913 914 915 916 917 918 919 920 921 922 923 924 925 926 927 928 929 930 931 932 933 934 935 936 937 938

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Foundry Account Job Costing Cost Accounts and Job Cost Sheets Review of Contracts Review of Implementation of Contracts Sales Abstract Auction Sale Account Sales of materials other than Auction Sales Accounts, Custody and Disposal of Scrap Annexure to Para 927 Tightening of Accountal procedure in Workshops

939 940 941 942 943 944 945 946 947

Chapter X – Stores Audit General 1001 Review of Contracts 1002 Purchase Orders 1003 Review of Implementation of Contracts 1004 Risk Purchases 1005 Audit of Stores Bills 1006 Port charges and Custom duties 1007 Receipt Returns, Delivery Notes and Priced Ledgers / Transaction 1008 Registers Monthly Stores Account Current 1009 Price Lists 1010 Price List rates for new stores 1011 Price List for scrap 1012 Purchase Accounts Registers 1013 Miscellaneous Advances – Capital and Revenue 1014 Security Deposit 1015 Stock Verification Reports 1016 Stores-in-Transit Register 1017 Stock Adjustment Account Register 1018 Stores Adjustment Sheet 1019 Yearly Statement of Stores Transactions 1020 Surplus Stores 1021 Scrutiny of sanctions to ‘Quantity’ and ‘Purchase’ through Programme 1022 Indents placed on the D.G.S.&D. Audit of Accounts for Imprest Stores 1023 Imprest Accounts other than Engineering Stores 1024 Accounts, Custody and Disposal of Scrap 1025 Review of cases of losses, embezzlement etc. 1026

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Survey Committee Reports 1027 Inspection of the work of receiving and dispatching sections of the Stores 1028 Depots Revision of audit procedure consequent on computerization of stores 1029 Annexure I (Para 1003) - Register of Review of Purchase Orders Annexure II (Para 1004 – Sub-Para 5) Register of Review of Implementation of Contracts Chapter XI – Traffic Audit General Sanctions Station and Out-Agency accounts Coaching Accounts Concession Vouchers Tracing of errors noticed in the check of passenger classification in ‘incorrect statements’ and review of incorrect statements Audit of collected tickets and Ticket Collector’s Reports Return of Tourist Agents Excess Fare Returns Luggage, Horse, Carriage and Dog Returns Demurrage and wharfage of parcels and left luggage Check of coaching traffic – Non-Government Railways Special Trains, Tourist Cars, etc. Parcel Traffic (‘Paid’) Audit of Parcel Way Bills Register of unaccounted for parcel way bills Audit of Parcel Way Bills – Foreign Traffic (Government Railways) Comparison of forwarded abstracts received from foreign railways with the received abstracts and preparation of lists of unaccounted for parcel way bills Foreign Traffic (Non-Government Railways) Comparison of outward and inward traffic returns and review of lists of unaccounted for parcel way bills (Non-Government Railways) Tracing of undercharges noticed on parcel way bills into Register of Exempted Debits / Error Sheets Verification of parcel way bill books in use in stations Telegraph Traffic Receipts Concurrent check of Police Warrants and Credit Notes (Parcels and Goods) Review of Registers of Credit Notes kept pending Audit of Coaching Balance Sheets Goods of Accounts

1101 1102 1103 1104 1105 1106 1107 1108 1109 1110 1111 1112 1113 1114 1115 1116 1117 1118

1119 1120 1121 1122 1123 1124 1125 1126 1127

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Audit of Invoices Check of Invoices marked for weighment enroute (Local Traffic) Audit of Invoices (Foreign Traffic) Check of Invoices marked for weighment enroute (Foreign Traffic) Tracing of undercharges noticed on invoices into incorrect statements and review of incorrect statements Check of Invoices – Non-Government Railways Comparison of outward and inward traffic returns and review of unaccounted for invoices (Non-Government Railways) Railway Material Traffic Comparison of Outward and Inward Returns (RMC) Review of Registers pertaining to Railway Material Traffic maintained by Accounts Office Check of Wagon Registration Fees Wharfage and Demurrage returns Review of Debits Withdrawn Review of exempted debits register Audit of Goods Balance Sheet Refund lists and Overcharge Sheets (Coaching and Goods) Miscellaneous Audit of cases relating to remission and refund of wharfage and demurrage charges Compensation for goods lost, damaged etc. Rate circulars and Tariff charges Handling and transshipment bills Check of crane charges Review of Reports of Station Inspections by Travelling Inspectors of Accounts and Accounts Officers Journal Vouchers including adjustment memo Pay orders and other vouchers not falling under any other category Rebate of freight Review of Suspense Accounts Audit of Postal Bills Cashier’s Station Cash Book Write off Registers Statement of siding charges Register of serious irregularities, losses and overpayments waived Register of Objectionable Items and Provisional Payments Review of tenders and contracts Traffic Book and Accounts Office Balance Sheet

1128 1129 1130 1131 1132 1133 1134 1135 1136 1137 1138 1139 1140 1141 1142 1143 1144 1145 1146 1147 1148 1149 1150 1151 1152 1153 1154 1155 1156 1157 1158 1159 1160 1161 1162

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Terminal and other taxes Audit of Tolls Capital and Revenue Accounts Working of the Accounts Department Proforma Accounts of work done on behalf of other Government Departments Apportionment of earnings between main and worked lines Pooling Traffic Arrangements Wagon Pool Accounts (i) Pakistan Railways (ii) Indian Railways Collection and delivery service-procedure for payment to contractors Audit of Cess on Coal Miscellaneous Statements (Goods and Coaching) Net Balance Statement – Non-Government Railways Review of concession register maintained in the Accounts Office Check of Miscellaneous Cash Receipts Chapter XII – Special Audit Group Duties of the Section Special Audit Group Investigations based on published Railway Statistics The following reports are to be reviewed by the SAG Section as and when received and the results bringing out important points, if any, put up to Principal Director of Audit Review of Work Study Reports Railway Budget Scrutiny of important special adjustments initiated towards the close of the financial year, which require special examination in SAG Section Review of Periodical Confidential DOs (PCDOs) Appendix to Para 1203 – List of Statistical Subjects Chapter XIII – Co-ordination Section Duties of the Section Efficiency of Internal Check Statistics of Volume of Work done in Audit Offices Procedure Office Order Register Programme of Audit Preparation of Charge Reports of Principal Director / Director / Deputy Director Tour Notes of Principal Director of Audit / Director / Deputy Director Recoveries at the instance of Audit Comptroller and Auditor General of India’s References (CAG References)

1163 1164 1165 1166 1167 1168 1169 1170 1171 1172 1173 1174 1175 1176

1201 1202 1203 1204

1205 1206 1207 1208

1301 1302 1303 1304 1305 1306 1307 1308 1309

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Custody, distribution and destruction of copies of Secret Memorandum of Instructions regarding Extent of Audit Quarterly Progress Reports on losses sent by General Manager to Railway Board Circulation of important results of audit and maintenance of Register of Important Results of Audit Arrear Report Annexure I (Para 1302) – Report on the Efficiency of Internal Check Annexure II (Para 1303) – Statistics of volume of work done in Railway Audit Offices – Divisions/Sections

1310 1311 1312 1313

Chapter XIV – Internal Audit General

1401 to 1405 Chapter XV – Reports Section

General Draft Paras Corrections to Railway Audit Report Pursuance of Paras included in the Audit Report Circulation of Railway Audit Reports Memoranda for Public Accounts Committee (Action Taken Note)

1501 1502 1503 1504 1505 1506

Chapter XVI – Inspections Objects of Inspection Distribution of Inspection work Frequency of Inspection Programme of Inspections Procedure for taking up Inspections Intensified Inspections Branch Officers’ supervision of inspections Inspection of Sub-Offices Points to be seen during inspections Maintenance of detailed records of documents audited during inspection Issue of Inspection Reports Register of Progress of Inspections Review of Major Works Check of royalty paid by Book Stall Contractors Verification of cash in hand with the Chief Cashier, Divisional Cashier and Cashiers during surprise visits Traffic Audit Inspection Inspection by Accounts Office

1601 1602 1603 1604 1605 1606 1607 1608 1609 1610 1611 1612 1613 1614 1615 1616 1617

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Annexure I (Para 1604) – Statement showing the additions to/ deletions from the list of main/sub-offices compared with the list of offices to be inspected in the previous year Annexure II (Para 1604) – Revision of duration of standard time allowed for various inspections and composition of the party Annexure III (Para 1606) – List of important offices for whose inspections assistance is provided by intensified Inspection Cell Annexure IV (Para 1609) – Items common to all Heads of Department Offices Annexure V (Para 1611) – Format of the forwarding letter for issue of Part. I and Part. II Inspection Reports Annexure VI (Para 1613) – List of items to be checked during the review / inspection of major works (completed works and works in progress) Annexure VII (i) (Para 1616) – List of Items to be checked – General, Passenger Traffic, Parcels Traffic, Goods Traffic Annexure VII (ii) (Para 1616) – List of Items to be checked (in addition to items in Annexure VII (i) – Passenger Traffic Annexure VII (iii) (Para 1616) – List of Items to be checked (in addition to items in Annexure VII (i) – Parcels Traffic Annexure VII (iv) (Para 1616) – List of Items to be checked (in addition to items in Annexure VII (i) – Goods Traffic Annexure VIII (Para 1611 and 1616) I Top Sheet for Traffic Audit Inspection Party Annexure VIII (Para 1611 and 1616) II Top Sheet for Local Inspection Party Openline and Workshop station Inspections Annexure VIII (Para 1611 and 1616) III Top Sheet for Construction Audit Inspection Party Annexure VIII (Para 1611 and 1616) VI Top Sheet for Cash Office Inspection Party Chapter XVII – Electronic Data Processing Audit (EDPA) Section Introduction 1701 Objectives 1702 Functions and duties of EDP Audit Section 1703 Documentation 1704 Audit Review of Planning and Acquisition of EDP Facilities and use of 1705 (i) Resources Audit of Acquisition of EDP Facilities 1705 (ii) Installation of Equipment and Adequacy of Testing 1706 Post Implementation Review 1707 The use of Computering Resources 1708 Audit review of EDP Installation controls 1709 Audit Review of Systems Under Development 1710

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Audit Review of Production Systems Audit Trail and its Objectives Audit of Database Systems Review of Microcomputers / Office Automation EDP Audit Techniques Test Deck Method Work Papers of EDP Audit

1711 1712 1713 1714 1715 1716 1717

Chapter XVIII – Costing Cell Section Formation of Costing Cell Review of workstudy Reports

1801 1802

96

PREFACE This Manual is issued for the guidance of the staff in accordance with Paragraph 87 of the Railway Audit Manual, and its contents must be considered as subject and subsidiary to the rules in Manual of Standing Orders (Admn.)., Manual of Standing Orders (Technical), and the Railway Audit Manual.

The Manual should not be quoted as an

authority in any correspondence outside the Office.

2.

Suggestions for improvement of the Manual are invited.

Secunderabad. Dated: 1st November, 1972

(K.S.RANGAMURTI) Chief Auditor.

PREFACE TO THE THIRD EDITION The first diglot edition of the Office Manual has been prepared to facilitate the progressive use of Hindi in office work. While updating this edition, opportunity has been taken to revise and enlarge the existing Office Manual to incorporate the changes and developments that have occurred since the second edition in 1988. The Manual has been issued for the guidance of the staff in accordance with the instructions contained in Para 79 of the Railway Audit Manual – IVth Edition. The instructions for audit contained herein are supplementary to those in the Manual of Standing Orders (Audit), Railway Audit Manual, Secret Memorandum of Instructions and other codes and regulations. This manual should not be quoted as an authority in any correspondence outside the office. The omissions or inaccuracies noticed in this Manual may be brought to the notice with a view to taking corrective action. Suggestions for improvement of the Manual are welcome.

Secunderabad. February, 2001

SHANTANU BASU Principal Director of Audit

PREFACE TO THE SECOND EDITION This Manual is issued for the guidance of the staff in accordance with paragraph 79 of the Railway Audit Manual and is in revision of the first edition issued in November 1972. In this revised edition, the manual has been enlarged and rewritten taking into account the provisions of the latest editions of various Railway and Civil codes and Manuals and further modifications made in recent years. In the first edition, extent of check, in force, was mentioned in respect of various items and the Manual was, therefore, treated as secret. Opportunity has now been taken to omit references to extent of check against various items in the revised manual so as to avoid a secret grading which is not appropriate for an Office Manual.

2.

Suggestions for improvement of the Manual are welcome.

Secunderabad. Dated:1st July, 1988

(SARASWATHI R.RAO) Director of Audit

PREFACE TO THE THIRD EDITION The issue of this third edition of Office Manual has been necessitated due to changes and developments that have taken place after bringing out the second edition in 1988 and pending translation and printing in diglot edition. The Manual has been issued for the guidance of the staff in accordance with the instructions contained in Para 79 of the Railway Audit Manual – IVth Edition. The instructions for audit contained herein are supplementary to those in the Manual of Standing Orders (Audit), Railway Audit Manual, Secret Memorandum of Instructions and other codes and regulations. This manual should not be quoted as an authority in any correspondence outside the office. The omissions or inaccuracies noticed in this Manual may be brought to the notice with a view to taking corrective action. Suggestions for improvement of the Manual are welcome.

Secunderabad. February, 2001

SHANTANU BASU Principal Director of Audit

Ch.I - Page 1 of 5

CHAPTER - I ORGANISATION 101. The Comptroller and Auditor General of India(C&AG) is the Head of the Indian Audit and Accounts Department and is the supreme audit authority in India. He is assisted by the Deputy Comptroller and Auditor General of India for audit and administrative purposes. For coordination of audit related work, there is a Principal Director (Railways) at HQrs. In the field, there are eleven Principal Directors of Audit who are assisted by Directors and Deputy Directors. 102. The Office of the Principal Director of Audit, South Central Railway, was constituted with effect from 2nd October, 1966 to coincide with the formation of the new zone comprising Secunderabad and Solapur Divisions of the erstwhile Central Railway and Vijayawada and Hubli Divisions of the then Southern Railway. With effect from 2nd October, 1977, the Solapur Division was transferred to Central Railway and Guntakal Division of Southern Railway was transferred to South Central Railway. Further, with effect from 1st April 2003, Hubli Division and Workshop & Stores / Hubli were transferred to South Western Railway with the formation of two Divisions viz., Guntur and Nanded on South Central Railway. 103. The Principal Director of Audit, South Central Railway is responsible for auditing all accounts relating to the South Central Railway. He/She is also responsible for auditing the accounts relating to the Indian Railway Institute of Signal Engineering and Telecommunications, Secunderabad and Railway Recruitment Board, Secunderabad, which are independent units functioning directly under the control of the Railway Board. The operation, management and accounting of the South Central Railway is organised on Divisional and Unit basis. Consequently, the Office of the Principal Director of Audit and its subordinate offices are correspondingly organised in a similar way for effective functioning. 104. The Principal Director of Audit is assisted by two Directors/Deputy Directors and Secretary to Principal Director of Audit. The various sections and Branch Offices constituting the Office of the Principal Director of Audit, its organisational set up and the functional distribution of charges are indicated in the chart at Page 2. The Principal Director of Audit holds direct charge of Reports, Secretariat, Special Audit Groups and EDP and Information Technology Audit Sections and supervises and controls the whole office including Divisional and Branch Audit Offices at Headquarters and outstations.

1

Ch.I - Page 2 of 5

PRINCIPAL DIRECTOR OF AUDIT

DIRECTOR

Sr.Audit Officers/ Audit Officers

DEPUTY DIRECTOR

Sr.Audit Officers/ Audit Officers

Secretary to Principal Director of Audit-cumCoordination

Sr.Audit Officers/ Audit Officers

Establishment Headquarters

Reports

Administration & Bills

Expenditure Headquarters

Special Audit Groups (ECPA) including Internal Audit and Intensified Inspections

Traffic Audit

Inspection Headquarters

EDP & IT Audit

Divisions at Secunderabad, Hyderabad, Hubli, Vijayawada & Guntakal

Books & Budget Headquarters

Stores Headquarters

Contract Audit

Workshops/Lallaguda, Hubli, Guntupalli and Tirupati

Construction units at Secunderabad, Vijayawada and Rajahmundry

RE/BZA (Residuary items)

The Principal Director of Audit is in direct charge of Reports, Secretariat, Coordination, Special Audit Groups and EDP & Information Technology Audit Sections and in overall supervision and control of the whole office including Divisional and Branch Audit Offices at Headquarters and outstations.

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105. The details of work entrusted to the sections are as follows:

I.

Headquarters Sections

Administration: Deals with personnel and managerial issues of the entire office including Branch Offices at out-stations. Reports: Processes/finalises Draft Paras/Reviews for Audit Report and attends to further queries and Action Taken Notes thereon. Coordination: Coordinates the audit work among the various auditing units and deals with related technical matters. Special Audit Group: Conducts special reviews and investigations under the orders of the Principal Director of Audit. Books and Budget Headquarters Audit: Checks General Books and other connected documents, audits consolidated Appropriation Accounts, Debt Head Report, Finance Accounts, Capital and Revenue Accounts. Establishment Headquarters Audit: Audits transactions relating to Gazetted and NonGazetted establishments of the Headquarters of the Railway, Indian Railway Institute of Signal Engineering and Telecommunications and the Railway Recruitment Board. Also audits Provident Fund Accounts maintained by the F.A.&C.A.O's office. Expenditure Headquarters Audit: Audits accounts maintained by the Central Expenditure Section of the F.A.&C.A.O's office, accounts of catering, reviews tenders and contracts above the prescribed value finalised at Headquarters level excluding stores and commercial contracts and coordinates work relating to expenditure audit. Stores Headquarters Audit: Audits the accounts maintained by the Stores Section of the F.A.&C.A.O's office, including implementation of Stores Contracts/Purchase Orders. Contract Audit: Reviews stores contracts(purchase orders) entered into by the Controller of Strores. Traffic Audit Inspection: Conducts local inspection of station accounts, issues the Inspection Reports thereof and pursues them to finality. Traffic Audit: Deals with audit of goods and coaching accounts both local and foreign and miscellaneous earnings which are dealt with in the Traffic Accounts Branch of the F.A.&.C.A.O's Office and reviews compensation claim cases. Reviews cases of remission of wharfage and demurrage charges foregone by the Chief Commercial Manager and other higher authorities. Construction Headquarters Audit: Audits accounts maintained by the F.A.&.C.A.O. (Construction), coordinates the work of various construction audit offices and undertakes local inspections of the offices of the Heads of Department and sub-ordinate offices (Construction) including Survey Organisation. Workshop Headquarters Audit: Coordinates the work of Workshop Audit Sections.

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Inspection Headquarters: Undertakes local inspections of offices of the Heads of Department (except construction offices), Indian Railway Institute of Signal Engineering and Telecommunications, Secunderabad, Railway Claims Tribunal, Secunderabad, Railway Recruitment Board, Secunderabad and Railway Hospital, etc. Intensified Inspection: Deals with the inspection of offices of special importance at Headquarters as also at outstations, as approved by the Principal Director of Audit. Secretariat: The section is responsible for collection of data from the various sections connected with the correspondence personally handled by the Principal Director of Audit. Whenever ordered, this section examines arrear reports submitted by various branches and monitors clearance of major items of arrears, cases of complaints regarding delayed payment of settlement dues, arrears, pay fixation, increment etc. as and when brought to the notice of the Principal Director of Audit. It also reports progress thereof to the Principal Director of Audit periodically, attending to official visitors and listening to their complaints, grievances and keeping a watch on such cases through a diary. The section will also be responsible for compilation and sending of all reports to C&AG's office relating to complaints as prescribed by C&AG's office. Generally the section will act as liaison between Principal Director of Audit and Units. EDP & Information Technology Audit Group: Responsible for the preparation and updation of managerial information systems on computer and finalisation of computer training programme and other training programme. Costing Cell responsible for critical review of Reports of the Costing Cell, Efficiency cell and workstudy cell and other areas of work entrusted by Principal Director of Audit. Internal Audit responsible for ensuring correct adoptation of system framed for the purpose of Audit under SMI, RAM, etc. (by the Units). Also responsible for Audit of charges relating to staff of SEC Railway and EC Railway Audit Offices and P&T Audit Office.

II. Divisional Audit Offices at Secunderabad, Hyderabad, Vijayawada, Hubli and Guntakal Audit the accounts maintained by the Divisional Accounts Officers in respect of Establishment, Expenditure, Books and Budget and undertake local inspections of their respective Divisional and their subordinate offices. They also review cases of remission of wharfage and demurrage charges foregone by the respective Divisional Commercial Managers.

III. Construction Audit Offices at Secunderabad, Vijayawada and Rajahmundry Audit of accounts of construction projects undertaken by the Construction Branch of the Railway maintained by the various Accounts Offices (Construction), both central audit and local inspections.

IV. Workshop and Stores Audit Lallaguda: Audits the accounts pertaining to the Loco Carriage and Wagon Workshop/Lallaguda, Engineering Workshops/Lallaguda, Signal and Telecommunication Workshop/Mettuguda, Stores Accounts pertaining to Mechanical and Electrical Stores 4

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Depot/Lallaguda, General and Signal Stores Depot/Mettuguda, Permanent Way Stores Depot/Mettuguda and Scrap Depot at Lallaguda. Also conducts Inspections of Shops and Stores Depots. Hubli: Audits the accounts of Loco-Carriage and Wagon Workshop/Hubli, General and Mechanical Stores Depot/Hubli and conducts inspections of Shops and Stores Depots. Wagon Repair Shop, Guntupalli: Audits the accounts of Wagon Repair Shop and conducts allied inspections of Workshop and Stores. Carriage Repair Shop, Tirupati: Audits the accounts of Carriage Repair Shop and conducts inspections of Workshop and Stores.

*********

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CHAPTER - II DEPARTMENTAL REGULATIONS 201. Powers and responsibilities of Principal Director of Audit: The functions of the Principal Director of Audit are detailed in paras 7 to 10 of the Railway Audit Manual. In the discharge of his/her duties, the Principal Director of audit is assisted by two Group Officers (Directors/Deputy Directors), Senior Audit Officers and Audit Officers. 202. The powers of the Principal Director of Audit relating to technical matters are derived from the Manual of Standing Orders (Audit) - (Paras 1.1.19 and 1.1.20), and those relating to the scope and extent of audit are detailed in the Secret Memorandum of Instructions and the orders issued by the Comptroller and Auditor General of India from time to time. Principal Director of Audit may relax the prescribed extent of audit as laid down in para 3 Chapter I of the Secret Memorandum of Instructions (Railways)for the reasons specified therein. The Principal Director of Audit has been declared as the "Head of the Department" for purposes of exercising powers under Fundamental Rules, Supplementary Rules and General Financial Rules. The financial and administrative powers of the Principal Director of Audit are given in Comptroller and Auditor General's Manual of Standing Orders (Administrative) Volume II. 203. Transfer of charge: When the Principal Director of Audit is to hand over his/her charge, the Co-ordination Section should collect the material from the various sections/divisions and prepare the draft memorandum of transfer of charge for his/her approval, bearing in mind the instructions contained in para 21 of Railway Audit Manual. (Paras 1.19 to 1.19.4 - Manual of Standing Orders (Administrative - Vol. I)) 204. Powers of Director/Deputy Director: The Principal Director of Audit has declared the Group Officer in charge of Administration to be the Head of the Office. He will exercise the specific powers which have been laid down in General Financial Rules and other orders as applicable to Heads of Offices, given in Annexure-I. The distribution of work between the two Group Officers is indicated in the organizational chart in Para 104. 205. Fixing Headquarters and posting of IA & AS Officers: Fixing the Headquarters and posting of I.A & A.S Officers are made by the Comptroller and Auditor General of India. (Authority: Paras 1.14.2 and 3.26 of Manual of Standing Orders (Admn.) Vol.I) Operation of In Lieu Post 206. Operation of posts of Audit Officer in lieu of I.A & A.S posts: Vacancy of not less than 46 days of an I.A & A.S post may be filled in by creating a temporary post of Audit Officer "in lieu" of the I.A. & A.S post with the sanction of the Comptroller and Auditor General. In unforeseen circumstances, Principal Director of Audit may, in anticipation of the approval of Comptroller & Auditor General, fill the vacant post of an Assistant Director by operating an "in lieu" post. However, entrusting the duties of a Deputy Director on adhoc basis to an Audit Officer, is to be done only with the prior approval of the Comptroller and Auditor General of India. 6

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(Authority: Paras 3.29.3.1 and 4.6.1 of Manual of Standing Orders (Admn.) Vol.I) 207. Entrusting the charge of Deputy Director to Audit Officer: The Audit Officer appointed to perform the current duties of Deputy Director can exercise administrative and financial powers vested in the Deputy Director but can not exercise statutory powers whether derived direct from an Act of Parliament or rules, regulations and bye-laws made under the authority of the Constitution (Fundamental Rules, Classification, Control and Appeal Rules, Civil Service Regulations, Delegation of Financial Powers Rules etc.) (Ministry of Home Affairs O.M.No. F7/14/61-Ests.(A) dated 24.1.1963). 208. Appointment of Group 'B' Officers: Principal Director of Audit is the appointing authority for Group 'B' Officers and is empowered to fix their Headquarters. 209. Distribution of work: (a) The distribution of work among the Gazetted officers is decided by the Principal Director of Audit subject to the general directives on the subject issued by the Comptroller and Auditor General from time to time. A return showing the distribution of charges among the Principal Director of Audit, Group Officers, Senior Audit Officers and Audit Officers as on 1st of October is to be sent to the Comptroller and Auditor General on 31st October every year. (b) The duties of the Secretary to Principal Director of Audit are given in Annexure-II. D. Handing Over Notes 210. Handing over notes of officers and staff: When any officer is relieved of his charge, a detailed handing over note in the proforma prescribed (Annexure III) should be prepared for the information of his successor. Confidential files and other records and articles in his personal custody should be separately listed in the handing over note. The handing over note should be put up to the immediate superior. Auditors/Senior Auditors should also prepare a detailed handing over note indicating the state of work in respect of his/her folio and submit to the immediate superior. Tour Programme 211. Tour Programme: The Senior Audit Officers and Audit Officers should draw up their monthly Tour Programme and submit them to the Principal Director of Audit through the Group Officer concerned before the 25th of the previous month, for approval. Prior approval should be obtained, for any change in the approved tour programme. Property Return 212. Returns and sanctions regarding transactions relating to property: Annual returns due from Gazetted Officers under Rule 18 of the Central Civil Services (Conduct) Rules 1964 regarding movable and immovable property should be sent to the Principal Director of Audit in the first week of January. The returns relating to Officers of the I.A & A.S should be sent to the Assistant Comptroller and Auditor General (Personnel).

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The sanction of competent authority as laid down in Rule 18 of the Central Civil Services (Conduct) Rules 1964 should be obtained for transactions in movable or immovable property, subject to the monetary values contained therein. Payment to Group ‘A’ Officers 213. System of payments to Group 'A' Officers: The pay and allowances of Group 'A' Officers of this office are drawn by this office in the same manner as for staff and Group 'B' officers and sent to Pay and Accounts Office (Audit). Payment of pay and allowances (including Travelling Allowance, Medical reimbursement etc.) is arranged by Pay and Accounts Officer (Audit), Accountant General (A&E), Andhra Pradesh, Hyderabad. While the Pay and Accounts Officer (Audit) is responsible for maintaining General Provident Fund accounts and detailed accounts of loans and advances drawn by the Group 'A' officers, the Service Registers and leave accounts are maintained by this office. On transfer of an officer, this office will issue Last Pay Certificate to the drawing and disbursing officer of the new office and also send Service Registers duly completed. Pension papers of the retiring Group 'A' Officers working in this office shall be prepared by this office and sent to the Pay and Accounts Office (Audit) for verification and issuing pension payment order/gratuity payment order. The pay book supplied to Group 'A' Officers will be completed by the drawing officer every month and returned to the officer(CAG's letter No. 363-TAI/197-82 dated 23.3.1983). 214. Appointment of Non-Gazetted staff: The Principal Director of Audit is the appointing authority for Section Officers and Director/Deputy Director incharge of Administration for all other Group 'C' staff. The senior Audit Officer/Audit Officer in charge of Administration is the appointing authority for Group 'D' staff. Oath of Allegiance 215. Oath of Allegiance: At the time of initial appointment to Government service, every individual is required to take the oath of allegiance to the Republic of India as prescribed in Para 6.2.13 - Manual of Standing Orders (A) Volume I. A record should be maintained of such oath taken by all Government servants of this office. 216. Conditions of Service: The Officers and staff of the Railway Audit Departments are governed by the conditions of service prescribed in Fundamental Rules and Supplementary Rules except for Travelling Allowance for which they are governed by the Railway Travelling Allowance Rules. For purposes of scales of pay and leave, they are governed by the Central Civil Services (R.P) Rules, 1996 and Central Civil Services (Leave Rules) 1972 respectively. All the officers and staff of South Central Railway Audit Office are governed by the Central Civil Services (Pension Rules) 1972 and Family Pension Rules, 1964. Award Scheme 217. Award Scheme: "Award Scheme" intended to stimulate original thinking among the members of staff has been introduced by the Government of India with a view to improving

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the efficiency and productivity in the field offices. This scheme has been communicated by the C&AG for implementation in IA & AD offices in December 1999. Under this scheme, the suggestions made by staff and officers have two components viz. (i) award for suggestions from employees and the public and (ii) high performance award for Central Government operational staff. The scheme covers all categories of staff technical/non-technical below the rank of Joint Secretary to the Government of India (i.e. equivalent of HOD rank in IA & AD). Awards will be given for specified categories i.e. financial savings through reduction of man power, efficiency in providing the services through reduction of time taken, procedural improvements, reduced travel, lesser paper work etc. Awards will be by way of cash awards as mentioned below: i)

The amount of award would be 10 percent of the saved amount and upto an amount of Rs.1 lakh per suggestion after financial savings are realized with the implementation of the suggestions. In case the Departmental Evaluation Committee determines the suggestion prima-facie as productive of savings, an immediate award for the suggestion can be given upto Rs.10,000 and subsequent award upto Rs.1 lakh (i.e. advance award and final award together) can be considered after the savings are actually realized.

ii)

In case of other suggestions accepted, an amount upto Rs.10,000/- per suggestion would be given.

iii)

In case of outstanding performance, an amount of Rs. 10,000/- per employee would be given.

All suggestions would be scrutinized by the Departmental Evaluation Committee headed by the Principal Director of Audit and two Directors/Deputy Directors (one of whom may be the officer concerned with the subject matter of the suggestion under consideration). Only viable suggestions should be forwarded to the Principal Director of Audit so as to reach by end of April each year. Suggestions found worthwhile by the Departmental Evaluation Committee would be forwarded to the Department of Administrative Reforms and Public Grievances through C&AG's office. (Authority: CAG’s Lr.No.662-Audit/O&M/248-99 dated 27.12.1999) 218. Promotion of an Assistant Audit Officer as Audit Officer: On promotion of an Assistant Audit Officer as Audit Officer or an Audit Officer as Senior Audit Officer a notification of the promotion should be forwarded for publication in the Gazette of India. (Para 30 of Railway Audit Manual). Transfers & Deputation 219. Transfers from one office to another: Section Officers including Section Officers' Grade Examination passed Auditors/Senior Auditors are not ordinarily transferred to any other Audit and Civil Accounts Offices. However, the Comptroller and Auditor General may transfer such persons to any other office within I.A & A.D or to any office under the Central 9

Ch.II - Page 5 of 32

Government on such terms and conditions as may be determined by him in each case. Mutual transfers of other staff from one office to another of the I.A.& A.D are permitted in deserving cases. Seniority appropriate to the lesser of the two lengths of service as Auditor/Senior Auditor/Clerk-Typist/Group-D (as the case may be) should be given to both the employees in the new offices to which they are transferred. (C&AG's letter No. 2200-NGE.III/41-6511 dated 13.9.1965). The scheme of Unilateral transfer in all cases within IA & AD and from Ministries/Departments to IA & AD has been dispensed with. (C&AG's letter No. 1005-N(App)/24-97 dated 27.08.1997). 220. Deputation: Deputations, including those on foreign service terms, of officers and staff are governed by the general conditions prescribed by the Government of India from time to time, (Appendix 5 to FR/SR). The following is the rate of Deputation (Duty) allowance. i)

5% of basic pay subject to maximum of Rs. 500/- for transfer within the station; and

ii)

10% of basic pay subject to maximum of Rs. 1000/- in other cases. The Deputation (Duty) Allowance shall be further restricted as under:(i) Pay plus Deputation (Duty) Allowance shall not exceed the maximum of the scale of pay of ex-cadre post; and (ii) Pay plus Deputation (Duty) Allowance shall at no time exceed Rs.22,400/- p.m. The restriction under FR 35 mentioned in OM dated 09.12.1986 will now be

as under:(a) (b)

For employees in receipt of basic pay upto Rs.8,000/- p.m. For employees in receipt of basic pay above Rs.8,000/- p.m.

15% of the basic pay subject to a maximum of Rs.1,000/- p.m. 12½ of the basic pay subject to a maximum of Rs.1,000/- p.m.

While the initial selection for deputations of Senior Audit Officers, Audit Officers, Assistant Audit Officers and Section Officers will be done by the Comptroller & Auditor General, the formal sanctions to the transfer on foreign service as well as to extension of tenure on foreign service to Central/State Governments etc. will be issued by the Principal Director of Audit. In respect of members of staff deputed on foreign service terms, contributions towards pension and leave salary are to be recovered. (Authority: Deptt of Personnel & Trg OM No.6/30/86-Estt(Pay-II) dated 09.12.1986 and OM No.2/8/97-Estt(Pay-II) dated 11.03.1998)

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221. Permission to join officially sponsored Organisation: Permission to join officially sponsored organisations such as Home Guards, St. John Ambulance Brigade etc. is granted to members of staff subject to the condition that it does not interfere with the efficient discharge of their official duties. 222. Permission to join Educational Institutions: Permission to join Educational Institutions outside office hours is granted to staff by the Principal Director of Audit in deserving cases subject to the condition that it does not interfere with the efficient discharge of their official duties and may be withdrawn at any time without assigning any reason whatsoever. Such permission does not in itself exempt the employee from transfer to another station during the course of the academic year. Representations 223. Representations: The representations from Government servants on service matters may be broadly classified as follows:(1)

Representations/complaints regarding non-payment of salary/allowances or other dues;

(2)

Representations on other service matters;

(3)

Representations against the orders of the immediate superior authority; and

(4)

Appeals and petitions under statutory rules and orders (e.g. Classification, Control and Appeal Rules and the petition Instructions).

In regard to representations of the type at Sl.Nos. 1&2 above, if the government servant has not received a reply thereto within a month of its submission, he could address or ask for an interview with the next higher officer for redressal of his grievances. Representations of the type at Sl.No.3 above would be made generally only in cases where there is no provision under the statutory rules or orders for making appeals or petitions. In regard to representations of the type at Sl.No.4 above, although the relevant rules or orders do not prescribe a time limit for disposing of appeals and petitions by the competent authority, all such appeals and petitions are disposed off within reasonable time. In case it is anticipated that it cannot be disposed off within a month, an acknowledgement or an interim reply should be sent to the government servant within a month. As such, submission of representations directly to higher authorities bypassing the prescribed channel of communication would be viewed seriously and appropriate disciplinary action taken against those who violate the instructions under rule 3(1) (iii) of the CCS(Conduct) Rules 1964. The representations should be couched in polite and courteous language. (Authority: Deptt of Personnel & Trg OM No.11013/7/99-Esstt(A) dated 01.11.1999)

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224. Maintenance of Secrecy in official matters: A government servant may not communicate directly or indirectly to other Government servants or to non-officials or to the Press any documents or information which may have come into his possession in the course of his public duties. Retention of such documents or information by a Government servant in his personal custody for use in the furtherance of his personal interest e.g. in making representations to the authorities concerned, is not only objectionable but also an offence under Section 5 of the Official Secrets Act, 1923. A person contravening the provisions of this Act renders himself liable to prosecution and/or departmental action under Discipline and Appeal Rules. No information or document or copy thereof, in contravention of the above instructions or infringing the provisions of the Official Secrets Act, should be furnished to outsiders even with the permission of a Gazetted Officer. Conviction 225. Conviction of Government Servants in a Court of Law: A government servant convicted in a Criminal Court should inform his official superior of the fact of his conviction and the circumstances connected therewith as soon as it is possible for him to do so. Failure to do so will be regarded as suppression of material information and will render the employee liable to disciplinary action on this ground alone, apart from the penalty called for on the basis of the offence on which his conviction was based. (Authority: Government of India, Ministry of Home Affairs O.M. No.25/70/49Ests. Dt.26.12.1949). As soon as a Government servant is convicted in a criminal charge, he may, in appropriate cases, be placed under suspension, if not already suspended. Dismissal, removal or compulsory retirement in cases of conviction is not automatic; each case should be examined on its merits and orders passed imposing the appropriate penalty only where a Government servant has been convicted in a court of law of an offence which is such as to render his further retention in public service prima-facie undesirable. (Authority: Government of India, Ministry of Home Affairs O.M. No.F.43/57/64-AVD(III) dt.29.11.1966 and O.M. No.371/3/74-AVD(III) dt.19.9.1975) 226. Government servants arrested on criminal charge: A government servant who is arrested for any reason should intimate the fact of his arrest and the circumstances connected therewith to his official superiors promptly even though he might have subsequently been released on bail. On receipt of the information from the person concerned or from any other source, the departmental authorities should decide whether the facts and circumstances leading to the arrest of the person call for his suspension. Failure on the part of any Government servant to so inform his official superiors will be regarded as suppression of material information and will render him liable for disciplinary action on this ground alone, apart from the action that may be called for on the outcome of the criminal case against him. (Government of India, Ministry of Home Affair's O.M.No. 30/59/54-Ests.(a) dated 25.2.1955 received under D.R.A's endorsement No. E.8-29/55 dated 26.3.1955. Confidential Reports

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227. Confidential Reports: Confidential Reports of all members of staff, excluding Group 'D', based on their performance and conduct during the period of report are written up annually in April or as otherwise required by the supervisory officials. However, no report is to be written wherever the Reporting Officer has supervised the work of the official for a period less than three months only during the reporting year. In such cases the Reporting Officer should, at the top of the report, mention the period of gap indicating the reasons for which a report for that period has not been written. Gradation List 228. Gradation List: a)

A gradation list of Officers and staff as on 1st March of every year should be prepared for the general information of the office. The list should be forwarded in triplicate to the Comptroller and Auditor General before 15th June of every year.

b)

The pay scales (Central Civil Services (Revised Pay) Rules 1997) attached to the Group 'A', 'B' 'C' and 'D' posts of this office are as under: GROUP

DESIGNATION

SCALE

Group ‘A’

Principal Director of Audit

18400-500-22400

Director

14300-400-18300 (SG.of Jr.Admn. Grade) 12000-375-16500 (Junior Admn. Grade)

Deputy Director

10000-325-15200 (Sr. Time Scale) 8000-275-13500 (Junior Time Scale)

Senior Audit Officer

8000-275-13500

Audit Officer

7500-250-12500

Sr. Data Processor

7500-250-12500

Asst. Audit Officer

6500-200-10500

Private Secretary to Pr.D.A

6500-200-10500

Section Officer

5500-175-9000

Supervisor

5500-175-9000

Welfare Assistant

5500-175-9000

Senior Auditor

5000-150-8000

Auditor

4000-100-6000

Junior Translator(Hindi)

4500-125-7000

Stenographer - Grade I

5500-175-9000

Group 'B'

Gr'B' Non-Gaz. Group 'C'

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Group - 'D'

Stenographer - Grade II

5000-150-8000

Stenographer - Grade III

4000-100-6000

Console Operator

4500-125-7000

Data Entry Operator

4000-100-6000

Clerk/Typist

3050-75-3950-80-4590

Hindi Typist

3050-75-3950-80-4590

Staff Car Driver

3050-75-3950-80-4590

Record Keeper(Selection Gr.)

3050-75-3950-80-4590

Record Keeper(Fun. Sele. Gr.)

3050-75-3950-80-4590

Record Keeper(Ordinary Gr)

2750-70-3800-75-4400

Junior Gestetnor Operator

2610-60-3150-65-3540

Daftry/Senior Peon

2610-60-3150-65-3540

Sepoy/Mali/Watchman

2550-55-2660-60-3200

Safaiwala

2550-55-2660-60-3200

LEAVE 229. Casual Leave: Every Government servant is entitled to a maximum of 8 days casual leave in a calendar year. Casual leave is treated as duty for all purposes. Casual leave should not be availed of without the prior sanction of the competent authority, except under unavoidable circumstances such as sudden illness. Not more than 5 days casual leave may be granted at a time except under exceptional circumstances and with the prior approval of the Director / Deputy Director. Casual leave can be combined with holidays compensatory leave and Restricted Holidays. However, when the total period of absence exceeds 8 days at a time, the prior sanction of the Deputy Director is necessary. Casual leave cannot be combined with regular leave. (Government of India, Ministry of Personnel, PG & Pensions, Department of Personnel and Training O.M.No. 28016/3/98-Estt(A) dated 15th June 1998). A casual leave account register in the prescribed form given below should be maintained by each section. One page should only be used for whole year for all the employees in one section, appropriate indication being given in the relevant column against the date on which the Casual leave or Restricted Holiday is availed of by an individual and the entry should be attested by the Sanctioning Authority promptly by means of dated initials.(CAG's letter No. 3687-N.3/88/85 dated 18.10.1985).

Proforma CL and RH account for the year ______________ Section/Division ____________________

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S.No

Name

CL taken on (dates) 1234568

RH taken on (dates) Remarks 1 2

230. Authority to sanction Casual Leave: a) Applications for Casual Leave and Restricted Holidays of the Branch Officers are to be submitted to Principal Director of Audit for sanction. (Authority: Circular No.Au/COR/I/Vol.VI dated 8/9.1.2001) b) Director/Deputy Director has been delegated with full powers to sanction Casual Leave to Senior Audit Officers/Audit Officers. a)

The extent of powers delegated to other authority is as under: Competent authority

(i)

(ii)

Asst. Audit Officers and Section Officers (Period of casual leave) Upto 5 days at a time. Group 'C' staff other than Stenos and Section Officers (period of Casual leave) Upto 3 days at a time Upto 5 days at a time

Branch Officer

Assistant Audit Officer/ Section Officer

Branch Officer

(iii)

Stenographers upto 5 days

By Controlling Officer

(iv)

Group 'D' staff: (period of casual leave) a. Upto 3 days at a time.

a. Section Officer/Asst. Audit Officer in charge of Administration in Headquarters and Divisions/Units.

b. Upto 5 days at a time

b. Branch Officer in charge of Administration in Headquarters/Divisions /Units.

Note:-

Sanction of Deputy Director/Director will be necessary in cases where the total period of absence at a time including Casual leave and connected holidays exceeds 8 days. (Authority: P.O.O. No. 141 dated 08.11.2000)

231. Station Leave: Permission to leave Headquarters during holidays or casual leave should be specifically applied for, furnishing leave address, and obtained from the authority competent to sanction casual leave. During regular leave also, address should be left with the office, but no formal permission to leave Headquarters is necessary. A monthly reconciliation of the attendance register with the leave advices and Casual Leave account should be carried out in the first week of the following month.

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232. Compensatory Leave: Whenever staff are required to work on Sundays or other public holidays at Headquarters or at out-stations during inspection, such staff may be granted compensatory leave, by the authority competent to grant casual leave. When such attendance is required for half-a-day, only half-a-day's compensatory leave is admissible. The compensatory leave granted to staff should be recorded in the Casual leave Register. (Para 86 of Railway Audit Manual) The accumulation of compensatory leave will not be subject to any limit, but such leave should normally be availed of within a month of its becoming due. A compensatory leave granted in lieu of duty performed can be prefixed or suffixed to regular leave or casual leave. (Ministry of Finance letter No. F.9(17)E.II(B)/65 dated 27.11.1965). 233. Special Casual Leave: Central Government employees are eligible for Special Casual Leave in respect of the following:(1) (2) (3) (4) (5) (6) (7) (8)

Sports events. Cultural activities. Mountaineering/Trekking expeditions Family Planning Re-employed ex-servicemen Union/Association activities Natural calamities and bundhs etc. During elections and other purposes.

The maximum number of days in a calendar year admissible and the conditions under which special casual leave is to be sanctioned are given in Chapter 4 of “Swamy’s Complete Manual on Establishment & Administration”. The grant of special casual leave will be subject to the general principles laid down in the FRs/SRs Part III. The power of granting special casual leave will be exercised by the head of the department. Special casual leave can be combined either with regular leave or casual leave, but not with both types of leave. 234. Restricted Holidays: Every Government servant is entitled to avail himself of two Restricted Holidays from out of the list of Restricted Holidays for the year. The Restricted Holiday should be got sanctioned by the sanctioning authority, in advance, before availing it. The authority competent to sanction leave can also grant permission to avail of Restricted Holiday. Restricted Holiday can be combined with other holidays, Casual leave and regular leave, prefixed for suffixed. 235. Passes/P.T.Os: The staff are eligible for passes/PTOs as applicable to Railway employees of the corresponding status. The issue of Passes/PTOs is also subject to the instructions issued by the General Manager, South Central Railway. Applications for passes/PTOs should be submitted in the prescribed form, normally 3 days in advance, except in emergent cases.

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The authority empowered to issue the Passes/PTOs to the officers/staff is as under: Officers authorised

Units

Type of Passes/PTOs

Audit Officer/Sr. Audit All the sections at Secunderabad Officer (Administration)

Privilege and duty passes of Group 'A' Officers, school passes, passes on transfer account, complimentary passes, passes on sports account etc. to all officers and staff.

Asst. Audit Officer (Administration)

ADMN, COR, EDP REPORTS, ,SAG, BILLS & IA

Privilege passes/PTOs and duty cheque passes both Foreign and Home lines to Group 'B' ,'C' and 'D' officials.

Asst. Audit Officer to be nominated by Audit Officer/Sr.Audit Officer(THQ)

TAI,THQ,FTA,LTA & Privilege passes/PTOs SHQ and duty cheque passes both Foreign and Home lines to Group 'B' ,'C' and 'D' officials.

Asst. Audit Officer to be nominated by Audit Officer/Sr.Audit Officer (W&S) Lallaguda.

W&S/LGD

Privilege passes/PTOs and duty cheque passes both Foreign and Home lines to Group 'B' ,'C' and 'D' officials.

Asst. Audit Officer to be nominated by Divisional Audit Officer/Secunderabad.

SC DIVN.

Privilege passes/PTOs and duty cheque passes both Foreign and Home lines to Group 'B' ,'C' and 'D' officials.

Asst. Audit Officer to be nominated by Divisional Audit Officer/Hyderabad.

HYB DIVN

Privilege passes/PTOs and duty cheque passes both Foreign and Home lines to Group 'B' ,'C' and 'D' officials.

Asstt. Audit Officer to be nominated by Audit Officer/Sr.Audit Officer (Construction)

CONSTRUCTION

Privilege passes/PTOs and duty cheque passes both Foreign and Home lines to Group 'B' ,'C' and 'D' officials.

Asst. Audit Officer to be nominated by Audit Officer/Sr.Audit

EHQ, XHQ, IHQ, BHQ and CA

Privilege passes/PTOs and duty cheque passes both Foreign and

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Ch.II - Page 13 of 32

Officer (XHQ & BHQ) NOTE :

Home lines to Group 'B' ,'C' and 'D' officials.

(1)

Duty cheque passes will be issued on the authority of written requisition signed by the Branch Officer.

(2)

Passes/PTOs for the nominated Asst. Audit Officer will be issued by any Gazetted Officer other than himself.

(3)

The Asst. Audit Officer authorised to sign the passes shall sign on behalf of the Principal Director of Audit (i.e. for Principal Director of Audit).

Branch Officers outstations

at Divisions/Construction/ Workshop and Stores

i)Privilege passes/ PTOs to the nominated Assistant Audit Officer, ii) Renewal of card passes. iii) School passes, transfer passes, passes on sports account and complimentary passes. iv) Duty cheque passes to Group 'B', 'C' and 'D' officials both Foreign and Local lines (Headquarters permi-ssion may be obtained before issuing the duty cheque passes on Foreign line).

Asst. Audit Officers Divisions/Construction/ at out-stations. Workshop and Stores

Privilege passes/PTOs to Group'B', 'C' and 'D' officials.

NOTE: In places where a Branch Officer is not Headquartered, the nominated Assistant Audit Officer may sign the duty cheque passes (Local and foreign) to Group 'C' and 'D' officials on the basis of approved inspection programme subject to ratification by Branch Officer subsequently. (Authority: POO Nos. 94 dated 30.9.1986 and 102 dated 4.6.1987). Before issue of passes/PTOs, the Auditor/Senior Auditor dealing with the issue of Passes/PTOs should scrutinize the application with reference to the rules contained in the Pass Manual and the declarations of family members obtained from the employees. The pass account should be posted simultaneously, and the entries attested by the Pass Issuing Officer. All applications for cancellation of passes and credit to pass account should be submitted to the Branch Officer concerned for orders and those received from the Branch Officers to the Deputy Director/Director in charge of (Administration). After the expiry of the admissibility period of passes, the employees should return the passes to the pass issuing authority and also a declaration in the prescribed form regarding utilisation or otherwise of 18

Ch.II - Page 14 of 32

Passes. The Auditor/Senior Auditor will watch their receipt and take action to call for them, if not received in time. All the Passes and P.T.Os issued during the last quarter should be counter checked by a Sr. Audit Officer and a report will be furnished to Headquarters for correct accountal / issue of Railway Passes. The officer nominated for the check of Railway Passes / PTOs issued during the preceding quarter will be held responsible for any irregularity noticed subsequently in the entitlement of Railway Passes / PTOs to any applicant. Any interpretation of the rules on the entitlement of Railway Passes may be referred to Headquarters so that a decision may be taken in consultation with the Ministry if required. No officer / staff may obtain any Railway Passes / PTOs from officers / branches of Zonal Railway Administration. In addition to the checks, it may also be ensured that used / expires Passes are being returned by the employees in time and pasted to block foils as per rules. (Headquarters lr.No. 508/Railway/Passes-PTOs/17-11/2005 dated 18.08.2005. read with Lr.No. 2507/Railway/Passes-PTOs/17-11/2005 dated 14.11.2006) Metal Passes: The Audit Officers are eligible for Metal Passes as applicable to Railway Officers of the corresponding status. The applications for issue of Metal Passes to the Audit Officers should be forwarded to the General Manager's office after obtaining the specific sanction of the Head of the Office {Deputy Director (Administration)}. (Authority - C&AG's D.O.Letter No. 121-RA.IV/17-21/89 dated 19th July 1993). 236. Custody of Passes and PTOs.: The Stock Register, Pass/PTO books in use, unused blank Pass/PTO books and blank card passes etc. should be kept in the custody of the Audit Officer/Sr.Audit Officer (Administration) and the Branch Officer concerned. Duty Card Passes in use will be in the custody of the Pass Issuing Authority who will maintain the Register of Movement of Card Passes. A Register of Residential Card Passes should also be maintained recording the issue of such passes to staff whose acknowledgement should be obtained. The Stock Registers should be preserved permanently. VERIFICATION 237. Verification of Passes and PTOs: On receipt of Pass and PTO books from the Railway Administration, the continuity of the number of the foils should be checked and a certificate to this effect recorded on inner page of the outer cover of the books and also in the Stock Register. Pass and PTO books required by Divisions/Unit offices will be supplied by Audit Officer/Sr.Audit Officer (Administration). The verification of all blank foils of books in stock or in use should be done half-yearly i.e. in January and July each year and a certificate to this effect recorded in the Stock Register as also on the outer cover of the books. Similar verification should also be carried out whenever there is a change in the incumbents responsible for the custody of these books and a certificate to this effect recorded in the Stock Register by the Officers handing over and taking over respectively. 238. Passes and Privilege Ticket Orders to Officers/staff including I.A.&.A.S. Officers: Officers, including I.A.&.A.S. officers and other members of staff, working in Railway Audit Department are entitled to Passes and PTOs at the scales prescribed from time to time for the

19

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Railway employees of corresponding status. Privilege Passes and PTOs may be issued to I.A.&.A.S. officers proceeding on leave for more than four months provided they have completed not less than one year service and the Comptroller and Auditor General of India certifies that the Officer is likely to return to the Railway Branch on the expiry of leave. For periods of leave not exceeding four months including leave preparatory to retirement, there is no objection to the issue of the Passes before or during the leave period, to be availed of during the leave period. However, this privilege cannot be granted either before or during the leave after it becomes known that on expiry of the leave, the officer is being posted out of the Railways. (Railway Board’s letter No.E(G)58P55-20/1, dated 14th April, 1960 and Comptroller and Auditor General of India’s endorsement No.512-RAI/T-17-2/63 dated 16th February, 1963 and Comptroller and Auditor General of India’s letter No.431-87RAIV/T/17-11/84 dated 24.8.1984). 239. Non-Railway Deputationists: Non-Railway Officers and staff on deputation to the Railway Audit Offices are eligible for Passes and PTOs as admissible to serving Railway employees from time to time provided the period of deputation is expected to last for one year or more. (Railway Board’s letter No.E(G) 59PS.5-15/1 dated 18th May, 1960 and Comptroller and Auditor General of India’s letter No.781-RAII/T-7-23/58 dated 3rd June, 1960). Officers and staff of the Railway Audit Department on deputation to NonRailway Offices are eligible for privilege passes and PTOs as admissible in their parent office for a maximum period of four years. However, in the case of deputation to Public Sector Undertakings, the eligibility is as under:i)

Posts which are declared to be top posts carrying the pay scale of Rs.18400-22400 and above

- 2 years

ii)

Other posts

- 3 years

(Railway Board’s letter No.E(W)75PS-5/15 dated 18.3.1976). 240. Passes on Sports Account: Passes on sports account are admissible to the staff of Railway Audit Department for participating in sports organised by the Central Sports Committee of the Indian Audit and Accounts Department. (Railway Board’s letter No.E(Trg.)63-PS5-20 dated 16.1.1963). 241. The Railway Audit staff are not entitled to the following concessions which are admissible to Railway servants only. i)

Passes on first appointment.

ii)

Special passes to office bearers of Staff Association.

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(Railway Board’s letter No.E(G)58PS-5-20/1 dated 6.6.1961) 242. Availing of Passes/PTOs from outside Offices/Railways: Whenever an employee obtains a Pass/PTO for him or his family from another office/Railway, in case of extreme emergency, he should furnish the Pass Issuing Authority of his office the details of Pass/PTO so availed by him soon after his return to Headquarters and ensure its proper debit. Passes on School account and Post retirement complimentary passes should not be taken or issued from any office/Railway other than the office from which these facilities are being availed of. (Chief Personnel Officer/Secunderabad’s Sl.Circular NO.64/83 dated 8/11.11.1983.) 243. Declaration of family members/dependent relatives: A declaration of family members and dependent relatives of officers/staff for the purpose of privilege passes/PTOs should be obtained in the prescribed form and kept on proper record. New declarations should be obtained with effect from 1.1.1988 for the next five years. The declaration is to be submitted even for self also. Declaration from new entrants should be obtained soon after their appointment. Bonafide certificates from the Recognised Educational Institutions should be submitted at the beginning of every academic year viz. June/July in respect of student sons/daughters/dependent brothers of age 21 years and above, if they are to be included in the Privilege Pass/PTO. As and when an employee is transferred, the declaration form should be sent to the office of transfer along with pass account of that year. The pass account register should be maintained duly indicating the details of family members, dependent relatives, age etc. based on the declarations furnished. (Chief

Personnel

Officer/Secunderabad’s

Sl.Circular

No.13/83

dated

29.1.1983). 244. Counting of past service rendered in the Civil Offices for determining the class of accommodation: The concession of eligibility for first class Pass/PTO on crossing the pay of Rs.5000/- allowed to the Railway Audit staff who have been appointed prior to 1.8.1969 is not admissible to those appointed in Civil offices prior to 1.8.1969 and subsequently appointed to Railway Audit Department on transfer basis. In those cases the pay limit of Rs.5375/- will apply. (Comptroller and Auditor General of India’s letter No.991RA.III/RA.II/T/17.12/77 dated 17.9.1982, Railway Board’s letter No.E(W)87/06/781/3 dated 27.3.1987 and Railway Board’s letter No.E(W)97/PS5/-1/62 dt.1.2.1999 and E(W) 97-PS-51/30 dt.14.1.2000). PERIOD OF AVAILABILITY 245. Period of availability of Pass/PTO to those who are about to retire: Privilege Passes/PTOs to those who are about to retire may be issued for the normal period of availability admissible under the rules even if it is beyond the date of superannuation of the employee subject to the condition that the total number of passes issued to an employee in service as well as after retirement should not exceed the total number to which the employee was entitled for, while in service. (Railway Board’s letter No.E(W)78-PS-5-2/3 dated 28.4.1980).

21

Ch.II - Page 17 of 32

MEDICAL ATTENDANCE 246. Medical Attendance: (i)

The officers and staff are governed by the Central Services (Medical Attendance) Rules, 1944 as amended from time to time. They are entitled to reimbursement of medical expenses incurred in connection with the treatment of themselves and members of their family as defined in the said rules.

(ii)

However, Officers and staff working at Headquarters (Secunderabad) are governed by the Central Government Health Scheme. C.G.H.S. Dispensaries are functioning at different places within the Municipal limits of Secunderabad and Hyderabad. All those employees who are residing within the localities covered under C.G.H.S. dispensaries prescribed, are governed by the C.G.H.S. A compulsory monthly contribution on a graded scale shall be levied on all entitled classes of Government servants.

(Director General of Health Services circular No.35-1/76-CGHS dated 25.2.1976). (iii)

As per the compilation of CGHS (Orders and instructions), a Government servant cannot opt out of the CGHS if he/she is eligible to be covered under the scheme.

(Director General of Health Services letter No.12011-1/83-CGHS dated 28.1.1983). (iv)

The Railway Audit staff are not eligible for Medical Attendance in Railway Hospitals except to the extent provided in Railway Board’s circular letter No.E/46-ME-39/3 dated 24.6.1946(Para-18 – Railway Audit Manaul). However, Comptroller and Auditor General of India has clarified that even though the normal entitlement of an employee in Railway Audit is the Central Services(MA) Rules or the CGHS (where in operation), the employee can exercise an option to avail of the Railway Medical facilities for himself and dependents in terms of Para-18 of Railway Audit Manual. An employee will be governed either by Railway medical facilities or the Civil Medical facilities but not both simultaneously. The option once exercised is final except where there is a change of residence or station on account of transfer.

(Comptroller and Auditor General of India’s letter No.3309-NGE.I/112-78 dated 24.9.1980). 247. Residential Accommodation: (i)

Although bungalows and quarters cannot be built specifically for the Railway Audit Department, the Railway Board have decided that the Railways should take into consideration these staff also for building quarters except at places where the Central Public Works Department takes the responsibility for providing houses for the Audit Department and the existing Railway quarters may be allotted to the Railway Audit staff as available and circumstances may permit.

(Railway Board’s letter No.53/W/190/28 dated 5.2.1955 and 59/WII/RR/45 dated 28.11.1960).

22

Ch.II - Page 18 of 32

(ii)

The allotment of Railway quarters to the Officers and staff of Railway Audit Department and recovery of rent, water charges, electric current etc. is on the basis of the same criterion as applied to the Railway staff. (Railway Board’s letter No.F(X)1-59-RNS/2 dated 9.7.1959).

(iii)

The staff of the Railway Audit Department occupying Railway accommodation may be permitted to retain the Railway accommodation for two months on normal rent after their transfer to out stations.

(Railway Board’s letter No.E(G)81 RN 2-65, dated 6.11.1981 and No.E(G)/83-RN-2-6 dated 17.12.1983) Pages 180 and 263 of the file No.AuA/IX/9/0/Vol.I. (iv)

The Railway Audit staff doing Railway Audit work and in occupation of Railway quarters at the time of their retirement/death are allowed to retain the Railway accommodation as under: (i)

Retirement:- For a period of four months from the date of retirement on payment of normal rent and the next four months on educational or sickness account on payment of double the assessed rent or double the normal rent or ten percent of the emoluments whichever be the highest.

(ii)

Death:- The family of a Railway Audit staff who dies while in service may be permitted to retain the Railway quarter for a period of 24 months on payment of normal rent from the date immediately after the date of death of an employee. (Railway Board’s Lr.No.E(G)98 QR 1-11 dated 22.1.99).

Retention of Railway quarters for the prescribed periods as indicated above may be allowed by the General Manager of the Railway Administration concerned on receipt of proper requests therefor. (Railway Board’s letter No.E(G)83-RN-2-6 dated 31.12.1986 received under Comptroller and Auditor General of India’s endorsement No.18-RAII/14-1/78 dated January 1987, Page 64 of file No.Au/A/IX/9/0/Vol.II). TRAVELLING ALLOWANCES 248. Travelling Allowance: Officers and staff of the Railway Audit Department are governed by the Railway Travelling Allowance Rules. This also applies to an Accountant General holding additional charge of the post of Principal Director of Audit for his tours as Principal Director of Audit. Non-Railway deputationists to Railway Audit Offices are governed by the Railway Travelling Allowance Rules during their term of deputation. Deputation allowance is also reckoned as ‘pay’ for determining the grade of employee. Officers and staff of the Railway Audit Department proceeding on or returning from deputation are governed by the Travelling Allowance Rules of the borrowing department.

23

Ch.II - Page 19 of 32

249. Children’s Educational Allowance, Reimbursement of Tuition Fee and payment of Hostel subsidy: All members of staff, irrespective of pay limit are eligible for Children’s Educational Allowance, reimbursement of Tuition Fee and Payment of Hostel subsidy in accordance with the Government of India’s orders contained in Ministry of Personnel, Department of Personnel and Training O.M. No.1801/1/87-Esstt. (Allowances) dated 31.12.1987 as amended from time to time. (Please see paras 479, 480 and 481 of this Manual). ADVANCES 250. Advances: The following are the advances permissible to the Railway Audit Staff: a) Interest bearing Advances for : i) ii) iii) iv) v)

Purchase, extension or construction of a house/flat, including acquisition of land therefor. Purchase of Motor Cars, Scooters etc. Purchase of Personal Computers. Purchase of other conveyances. Purchase of Fans.

b) Interest free advances: i) ii) iii) iv) v)

Advance of leave salary. Festival Advance. Advance to Government servants affected by floods cyclones etc. Advance of pay on transfer. Advance of Travelling Allowance on tour/transfer.

251. Staff Associations: Recognition to the staff associations is granted by the Comptroller and Auditor General of India. The following is the recognised staff association in this office: South Central Railway Audit Officers’ Association. Representations from staff associations addressed to higher authorities may not be forwarded if: i)

they contain disrespectful or improper language.

ii)

the representation is on matters of local interest on which Principal Director of Audit can take a decision.

iii)

the representation merely repeats old demands/grievances rejected or not accepted or on which definite policy decision exists. Contents of telegraphic representations should be approved by the Head of the

Office. Apart from routine notifications relating to (a) holding of meetings (b) elections and results thereof

24

Ch.II - Page 20 of 32

(c) statement of accounts of association, and (d) reminders to members about their dues, the display of notices by the recognised association in the office premises requires prior permission. Such notices shall be displayed on the notice board specified for the purpose. INSPECTION OF OFFICE 252. Inspection of Principal Director of Audit’s office by the Principal Director of Inspection: Principal Director of Inspection attached to the Comptroller and Auditor General of India’s office inspects this office periodically (generally once in two years). The inspection will generally consist in examining office administration and other procedural aspects. (Para No.1.17 – MSO(A) Vol.I). Replies to Draft Observation Slips should be approved by the Principal Director of Audit, if not issued over his signature except in the case of Branch offices where the replies should be signed by the Head of that office.

25

Ch.II - Page 21 of 32

Annexure I (Para 204) The administrative and financial powers of the Comptroller and Auditor General and the Heads of Departments, contained in various publications of the Central Government, are shown in Sections A to I of the Manual of Standing Orders (Admn.) Vol.II. The administrative and financial powers specifically delegated to the Head of the Office are given below. The Deputy Director of Audit (Administration) has been declared to be the Head of office vide P.O.O. No.2, dated 4.10.1966 (See item No.8 of Section “A” to Manual of Standing Orders (Admn.) Vol.II. S.No

Nature of Powers

Extent of Powers

Authority

1.

To act as Appointing and Disciplinary authority for Group “C” (upto Sr.Auditor)

Full

Section ‘E’ of MSO(A) Vol.II (Page 78)

2.

Terminating the services of a temporary Government servant.

Full

Item No.1 of Section G of MSO(A)-Vol.II

3.

Requiring a non-gazetted Government servant to furnish a statement of movable or immovable property held or acquired by him/her or on his/her behalf or by any member of his/her family including the details of the means by which or the source from which such property was acquired.

Full

Item No.21 of Section F of MSO(A) Vol.II.

4.

To sign the communal roster where Principal Director of Audit himself/herself is the appointing authority.

Full

Principal Director of Audit’s orders dated 29.6.1975 (Page 137 of File No.Au/Admn/IX/ 23/Vol.I)

5.

Grant of increments to NonGazetted staff (other than Section Officers).

Full

Fundamental Rules 24 and 25

6.

Grant of leave of all kinds other than special disability and study leave to Group ‘B’ Officers, ‘C’ and ‘D’ staff.

Full

Para 36 of Railway Audit Manual. (Branch Officers can sanction EL upto 30 days to Section Officers and other Group

26

Ch.II - Page 22 of 32

‘C’ staff). 7.

Advances/part final withdrawals, under Rule 12/15 of GPF(CS) Rules to Group ‘B’, ‘C’ and ‘D’ staff.

Full

Item No.1 & 2 of 5th Schedule toGPF(CS) Rules 1960 and Notification No.13(2)/8—Pen. dated 20.5.83 of Govt. of India, Ministry of Home Affairs, Department of Personnel and Administrative Reforms, New Delhi.

8.

Advance in lieu of leave salary to Group ‘B’, ‘C’ and ‘D’ staff.

Full

Rule 259 of G.F.Rs.

9.

Controlling Officer under S.R.191 for purpose of Travelling Allowance to Group ‘B’, ‘C’ and ‘D’ staff.

Full

Item 30- section ‘C’ of MSO(A) Vol.II.

10.

Countersigning of medical claims of Gazetted staff.

Full

P.O.O.No.62 dated 6.6.1980.

11.

Power to sanction advances of (a)Travelling Allowances on tour and (b)advances of Pay and Travelling Allowance on transfer to permanent and temporary Government servants.

Full

GFRs 231 & 222.

12.

Grant of advances for the purchase of bicycle.

Full

G.F.R.191(2)

13.

Grant of Festival Advance to non- Full gazetted staff drawing basic pay of not exceeding Rs.8300/- per month.

G.F.R. 236

14.

Grant of Fan Advance to Group ‘D’

Full

G.F.R. 221 A

15.

Repair and Purchase of spare parts for office machines.

Rs.2000 p.a.

Item No.18 subsection-Section ‘A’(xiv) of MSO(A) Vol.II.

16.

Convenyance Hire or other conveyance charges to gazetted Government servants.

Upto Rs.50/in any

No.850-NGE.I/ 122-67 dated 14.5.69, F1(4)-

27

Ch.II - Page 23 of 32

one month

EII(A)/76 dated 11.6.76 (Page 157) (Page 58 of File No.Au/A/IX/ 23/Vol.I).

Rs.2000 p.a.

Item No.18(IX) of Section A of MSO(A) Vol.II and CAG’s letter No.3838NGE.I/84-78 dated 20.12.79 (Page 219 of Au/A/IX/23/ Vol.I)

17.

Local printing and binding in emergent cases

18.

Local purchase of Heads of offices in JA petty stationery stores Grade Rs.4000 p.a. Heads of Offices in time scale Rs.1500 p.a.

19.

Contingent expenditure on items other than those in respect of which specific limits/scales have been prescribed by Government.

Heads of offices in time scale of IA&AS upto Rs.2000 p.a. (Recurring) upto Rs.5000 p.a. (nonrecurring). Other Heads of Offices upto Rs.200 p.a. (Recurring) upto Rs.1000 in each case (non-recurring).

Item 21(B) of Schedule V of Delegation of Financial Powers Rules. Item No.14 Section ‘A’ of MSO(A) Vol.II C&AG’s letter No.3229NGE.I/81-79 dated 30.10.79 (Page 210 of File No.Au/ Admn/IX/ 23/Vol.I)

28

Ch.II - Page 24 of 32

Auditorial:

To waive raising formal objections

Subject to conditions given in Para 7.1.14 Manual of Standing Orders (Audit) (i) Upto Rs.15/- in the case of irregular expenditure.

Para 7.1.14 of Manual of Standing Orders (Audit)

(ii) Upto Rs.25 in the case of expenditure which though otherwise justifiable in itself. (a) is objectionable on the ground that it is not covered by requisite sanction, but where there is no reason to believe that such sanction would not be forthcoming if sought for. (b) Where full proof of the regularity of the expenditure is not forthcoming although there is no reason to doubt that the disbursement has been actually made. (iii) Upto Rs.5/- in the case of under charge in items of earnings. (iv) Upto Rs.250/- in the case of mistake in the apportionment of earnings between Government Railways (See Note under Para 183 of Railway Audit Manual). (v) Upto Rs.5/- in the case of under charge or over charge in Government Traffic.

29

Ch.II - Page 25 of 32

Annexure II (Para 209(b)) The Secretary to the Principal Director of Audit is entrusted with the following items of duty: (1)

Assisting the Principal Director of Audit, in connection with the correspondence which is personally handled by the Principal Director of Audit by collection of relevant data from various sections whenever ordered by the Principal Director of Audit.

(2)

Assisting the Principal Director of Audit in the examination of arrear reports submitted by various branches and watch on clearance of major items of arrears.

(3)

Investigation and working out details of important new proposals initiated by or referred to the Principal Director of Audit and collection of information from various sections required by the Comptroller and Auditor General of India etc. at short notice.

(4)

Maintaining duplicate copies of all important sanctions received from Comptroller and Auditor General of India required for the personal information of the Principal Director of Audit.

(5)

To bring to Principal Director of Audit’s special notice of control returns not being submitted to him/her by various sections and reasons therefor and suggesting remedial action and also pursuing them till they are finally put up.

(6)

Detailed investigation of cases relating to any section as and when marked by the Principal Director of Audit.

(7)

Examination of cases of complaints regarding delayed payment of settlement dues, arrears, pay fixation, increment etc. as and when brought to the notice of the Principal Director of Audit and reporting progress thereof to the Principal Director of Audit periodically.

(8)

Attending to official visitors and listening to their complaints/grievances sympathetically and keeping a note of this, also to put them on record and send them to the Deputy Director/Director concerned. He will keep a watch on such cases through a diary. He will also bring to the notice of the Principal Director of Audit such cases of complaints as remain undisposed off for a period of over one month.

(9)

He will also be responsible to compile and send all returns to the Comptroller and Auditor General of India’s office which relate to the complaints which have been so far prescribed or may be prescribed in future.

(10)

Review of working of particular section(s) of the office as and when marked by the Principal Director of Audit.

(11)

He will also conduct surprise checks of sections getting reports on bottlenecks in their working and suggesting remedial action.

(12)

He will generally act as multipurpose officer on behalf of the Principal Director of Audit as befits a Secretary. (Authority: P.O.O. No.104 dated 8/1987)

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Ch.II - Page 26 of 32

Annexure III (Para 210) FORMAT - I HANDING OVER REPORT OF BRANCH OFFICER (To be prepared in quadruplicate in respect of each section separately) ***** Handing over Report of Shri/Smt./Ms.______________________, Sr.Audit Officer/Audit Officer, _______________ Section, Dated ________________ 1. (a) Name of the Branch Officer :

(b) Event for handing over:_________________

Handing over: ______________________ Taking over: ________________________ 2. Name of the Group: _____________________________ 3. Name of the Controlling/Coordinating Section: __________________________________ 4. Brief Narration of the work attended by the section: ____________________________________ _____________________________________ ______________________________________ 5. Position of staff: Section Officer/ Asstt. Audit Officer i) ii) iii) iv)

Auditor/ Sr.Auditor

Clerk/Typist

Sanctioned strength Men in position Shortages, if any Action taken to fill up the shortages

31

Ch.II - Page 27 of 32

6. Comparative position of arrears (in terms of mandays): Particulars

At the time of taking over charge on ___________

At the time of handing over charge now

Increase(+) Decrease (-)

Internal

Internal

Internal

External

External

Reasons for increase with action taken and or suggestions for over-taking the arrears.

External

a) At Branch Officer’s Level: i) Reviews ii) Any other item Total (a) ______________________ ________________________ In the Section (Items as per monthly/ quarterly Arrear Report to be specified) Total (b) ________________________ Grand Total (a) + (b) ___________________________ Note: Detailed position of outstandings under Suspense Heads/Broadsheets/Difference between ledger and Broadsheets may be appended. 7. Internal Test Audit/Principal Director of Inspection Reports Pending: a)

Year

b)

Internal Test Audit Reports.

c)

Principal Director of Inspection Reports.

Total No. of paras

No.of paras pending disposal

Suggestions for Expeditious disposal of o/s paras

32

Ch.II - Page 28 of 32

8. Important letters/periodical adjustments/ cases pending disposal (together with action/suggestion if any) Year upto which due

Year upto which sent/done

Reasons for arrears and action taken so far

9. (a) Position of consignment of old Record section: (b) Position of physical verification of dead stock (Specific mention may be made of excesses/shortages noticed and action taken therefor). 10. Books/Pamphlets/Files etc. handed over: Note: Specific mention may be made of MSO(Audit), MSO(A) and Memorandum of Secret Instructions etc. 11. Valuables: (Cash, Service postage stamps, if in charge). 12. Furniture: (including keys and locks etc.) 13. Nominations in custody handed over. 14. Confidential papers/cases (including confidential note on appraisal of work and dependability of staff) handed over.

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15. Special Remarks: a) A summing up of the state of work in section, non-closing of Calendar of Returns, areas of weakness and other issues which need personal attention, sanctions of long period of currency cases of investigation by SAG, Field parties etc. Handed over/date

Taken over/date

Relieved Branch Officer

Relieving Branch Officer

Remarks of Group Officer: Remarks of Principal Director of Audit

34

Ch.II - Page 30 of 32

F O R M A T - II Handing Over Report of Section Officer/Asstt. Audit Officer (To be prepared in triplicate) Handing over Report of Shri/Smt./Ms._________________, Section Officer/Asstt. Audit Officer,_______ Section, Dated __________ 1. (a) Name of the Section Officer/Asstt. Audit Officer: (b) Event for handing over:_________________ Handing over: ______________________ Taking over: ________________________ 2. Name of the Group: _____________________________ 3. Name of the Controlling/Coordinating Section: __________________________________ 4. Brief Narration of the work allotted to the section: ____________________________________ 5. Position of staff: Auditor/ Sr.Auditor

Clerk/Typist

i) Sanctioned strength ii) Men in position iii) Shortages, if any iv) Action taken to fill up the shortages 6. Comparative position of arrears (in terms of mandays): Particulars

At the time of taking over charge on ___________

At the time of handing over charge now

Increase(+) Decrease (-)

Reasons for increase with action taken and or suggestions for over-taking the arrears.

Internal External Internal External Internal External a) At Branch Officer’s level: i) Reviews ____________________ ii) Any other item ____________________ Total (a) ______________________ In the Section: (Items as per monthly/quarterly Arrear Reportto be specified) ___________________________ Total (b) ________________________ Grand Total (a) + (b) ___________________________

35

Ch.II - Page 31 of 32

Note: Detailed position of outstanding under Suspense Heads/Broadsheets/Difference between ledger and Broadsheets, Sealing down of differences, non-receipt of utilization certificate etc. may be appended. 7. Internal Test Audit/Principal Director of Inspection Reports Pending: Year a)

Internal Test Audit Report

b)

Principal Director of Inspection Reports

Total No. of paras

No.of paras pending disposal

Suggestions for Expeditious disposal of outstanding paras

Year upto which sent/done

Reasons for arrears and action taken so far

8. Important letters/periodical adjustments/ cases pending disposal (together with action/suggestion if any) Year upto which due 9. (a) Position of consignments of old records (b) Position of physical verification of dead stock (Specific mention may be made of excesses/shortages noticed and action taken therefor). 10. Books/Pamphlets/Files etc. handed over(a list may be appended): Note: Specific mention may be made of MSO(Audit), MSO(A) and Memorandum of Secret Instructions etc. 11. Valuables:______________________

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12. Keys/locks/furniture etc. (transfer of charge certificate in terms of Para 6.3.4 of Manual of General department and office procedure) 13. Confidential papers/cases (including a confidential note to the successor regarding quality of auditors under his charge). 14. Calendar of Returns, Attendance Register, Monthly and quarterly Arrear Reports, Register of good and bad work, Register of Valuables, duty lists etc. 15. Machines, cycles, typewriters, calculators, duplicating machines etc. if in charge. 16. Any other item requiring special mention. 17. (Heavy pendency in particular areas, action taken for missing books/ files/keys/machines etc. sanctions of long period of currency, cases of investigation by SAG and/or field parties etc.) Encl: As mentioned above. Handed over/date

Taken over/date

Relieved S.O./A.Au.O.

Relieving S.O./A.Au.O.

Submitted to Branch Officer Remarks of Branch Officer Remarks of Group Officer:

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Ch.III - Page 1 of 40

CHAPTER - III GENERAL OFFICE PROCEDURE 301. (a) Hours of work and holidays: Hours of work and holidays observed by the Railway audit office will conform to those obtaining in the corresponding local Railway offices. The working hours followed are from 9.15 A.M. to 5.45 P.M. with half an hour interval for lunch from 1.15 to 1.45 P.M. Divisional Audit Offices at outstations will submit an approved list of Holidays and Restricted Holidays for the year pertaining to their divisions immediately on its receipt from the Divisional Railway Manager concerned. (C.S. No. 3 of August 2002 – Authority: POO No. 149 of 04.04.2002) “The workshop Audit Offices at Lallaguda, Guntupalli and Tirupathi will observe Office timings coterminous with those of their respective Railway Accounts Offices. In so far as holidays are concerned the Workshop Audit Offices will follow the list of holidays as observed by their respective Accounts Offices.” (Paras 82 and 83 of Railway Audit Manual) (b) Closure of Government Offices in the event of death of high dignitaries: The intimation of the death of the President or Prime Minister through All India Radio and Door Darshan should be treated as authentic and offices closed accordingly. If intimation of the death is received after office hours, offices will be closed on the following day, if it is a working day. If intimation is received during office hours late in the afternoon, offices will be closed for the rest of the day; but if it is not possible to close the offices for more than 3 hours on the day, offices will be closed on the following day also on the instructions of the Home Ministry. (MHA O.M. No.3/2/97-Public dated 21.11.1997) Attendance Attendance Register

Late Attendance

Absence from Office

302. Attendance Register: Members of staff should be punctual in their attendance. On arrival, they should initial against their names in the Attendance Register. The Section Officers/Asstt. Audit Officers should close the Attendance Registers promptly at 9.25 A.M. and submit them to Branch Officers concerned after marking a circle in red ink against the names of those who had not come to office by that time. In the absence of Branch Officer, they should submit the Attendance Register to the nominated link officer. Members of staff attending office late should initial in the Attendance Register in the presence of Branch Officer indicating the time of arrival. In outstations where no Branch Officer is headquartered or when the Branch Officer is absent, the compliance of these instructions should be ensured by Section Officers/Asstt. Audit Officers concerned. The Branch Officers

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shall ensure that the Attendance Registers reach them from the respective sections in time for the check as prescribed. The Branch Officers and supervisory staff should also ensure that the prescribed half-an-hour lunch break is scrupulously observed by one and all. Surprise check of one or two sections daily may be conducted by the Deputy Director/Director to ensure that the procedure of closing the Attendance Registers is being followed strictly. (P.O.O. No.54 dated 22.10.1974) Group ‘D’ staff should attend office by 8.45 A.M. daily for opening the office, dusting furniture, arranging drinking water etc. before the office starts functioning at 9.15 A.M. Similarly, at the close of the office hours, Group ‘D’ staff should ensure that all the lights and fans are put off, doors and windows are securely closed before they leave the office. The key, duly sealed in a box, is to be deposited in the Administration section (for sections located in Secunderabad area). 303. Late Attendance: Half a day’s casual leave will be debited for each late attendance. Late Attendance not exceeding one hour due to unavoidable reasons may be condoned by the Section Officers/Asstt. Audit Officers in respect of staff working under them and by Branch Officers in respect of Section Officers/Asstt. Audit Officers working under them, upto two occasions in a month. A monthly review of late attendance should be done for its regularisation. Disciplinary action may be taken in cases of habitual late attendance. If an official, who has no casual leave to his credit, comes late without sufficient justification and the Administrative authority concerned is not prepared to condone the late coming but does not at the same time propose to take disciplinary action, he may inform the official concerned in writing that he will be treated as on unauthorised absence for the day on which he has come late and leave it to the official himself either to face the consequences of such unauthorised absence or to apply for Earned Leave or any other kind of leave due and admissible for the entire day. The same may be sanctioned by the competent authority. (GI, DP&AR O.M. No.28034/3/82-Estt.(A) dated 5.3.82) The case of a Government servant who leaves office early without permission before the time for closing of office should also be treated like late attendance and half-aday’s casual leave should be debited to the Casual Leave account for each such early departure from office. (G.I., D.P.&A.R., O.M. NO.28034/10/75-Estt(A) dated 27.08.1975) 304. Absence from Office: Absence by members of staff from office without proper permission or getting leave sanctioned will tantamount to unauthorised absence entailing disciplinary action. DAK INWARD REGISTRATION CIRCULATION

DISPOSAL

DISPATCH

ARREAR

REPORT

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305. Inward Dak: Excepting secret, confidential and demi-official letters, all letters, on receipt, are date stamped in the Routine section. The letters received from the Comptroller and Auditor General of India, Railway Board, Government of India, State Government and Sanctions of the General Manager and general telegrams are sorted out in one pad (‘A’ Dak) and the others kept in another pad (‘B’ Dak). The dak pads are circulated to the Principal Director of Audit and Director/Deputy Director and other specified Officers. Secret, confidential and demi-official letters will be opened by the officers concerned. However, in the absence of Principal Director of Audit, such letters addressed to the Principal Director of Audit will be opened by the Director/ Deputy Director. These letters are entered in the diary maintained by Private Secretary to Principal Director of Audit/Stenographers and where necessary sent to the Asstt. Audit Officers/Section Officer of the section concerned and their acknowledgement is obtained in the diary maintained by the Private Secretary/Stenographers. Asstt. Audit Officer/Section Officer concerned should then get them entered in a diary of confidential and secret letters to be maintained by each section. Such letters duly entered in the confidential diary should be put up to the Branch Officer for his information on the same day. Progress of disposal and the position of outstanding of such letters should be put up to the Branch Officer every Monday as in the case of ‘A’ dak letters. While submitting the confidential inward diary periodically to the Principal Director of Audit, Private Secretary should obtain the remarks of the Branch Officer concerned in respect of outstanding letters. Letters on which Principal Director of Audit has raised queries should also be dealt with in the above manner. (P.O.O. No.56 dated 21.6.1976) Orders passed/queries made by the Principal Director of Audit/ Director/Deputy Director in the inward letters are to be noted in a separate register by the Private Secretary/Stenographers to watch the action taken by the sections concerned. 306. Registration of Inward letters: After circulation among the Officers, the dak pads are returned to Routine section. The Routine Section, after verifying the correctness of the number of letters received back with those shown in the circulation slip, will register all letters in the ‘A’ dak pad, individually in a Central Register in the form given in Annexure IV to this Chapter. The total number of ‘B’ dak letters received every day and their distribution among the various sections will be recorded in another register (‘B’ dak Register) in the form given in Annexure IV to this Chapter. Every section including those in the Branch Offices should maintain separate ‘A’ and ‘B’ dak registers in the form given in Annexure IV to this chapter. Letters pertaining to respective sections will be sent to them under dak slips. The Clerk/Typist attached to the sections should submit the letters to the Branch Officers after verifying the letters with the Dak slip. Letters received directly in the sections from other sections or offices should also be submitted to the Branch Officers along with the Head Office Dak. After perusal by the Branch Officers, the letters should be registered in ‘A’ and ‘B’ dak registers by the Clerk/Typist/Record Keeper. The out-turn fixed in respect of diarising of letters (including registered letters) is 310 letters per day per Clerk. (Comptroller and Auditor General of India’s letter No.100-O&M/39-86 dated 30.1.1987)

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Ch.III - Page 4 of 40

307. Disposal of letters: On receipt of the Inward Register with letters, the Asstt. Audit Officer/Section Officer will go through the letters and mark them to the Auditor/Sr.Auditor concerned for disposal. The Auditor/Sr.Auditor will acknowledge the letters received by him in the Inward Register. Asstt. Audit Officer/Section Officer should ensure that the staff receive the letters promptly without allowing the letters to accumulate. Reference to the file in which the letter is filed should be given against each entry in the Inward Register (‘A’ and ‘B’ Daks) with the dated initials of the Auditor/Sr.Auditor concerned. The Auditor/Sr.Auditor entrusted with the disposal of letters will attach the letter to the file concerned and submit the disposal in a note on a separate sheet. Office notes should contain full references to previous notes, letters/orders. On the letter under disposal, the page number of the letter to which it is a reply and also the page numbers of the letters referred to in it should be indicated. In the case of letters received from higher authorities, copies of letters (enclosed), which are not available should be obtained either locally or from the offices from where the letters under disposal were received and linked up. When cases are put up for disposal, all the relevant files should be page numbered and referenced. References to correspondence in such files may be made in the margin of the note. While putting up drafts for approval, the following points should be observed: i)

The case or file number should invariably be given at the top.

ii)

The subject (which should ordinarily be the case title) should be given as the heading in the draft.

iii)

If there has been previous correspondence on the subject the draft should, if necessary, commence with a reference thereto.

iv)

Nothing should be written in the margin and sufficient space should be left between the lines to admit corrections being made in the draft. Both sides of the paper should be used and the paragraphs numbered. Only recognised abbreviations should be used.

v)

Enclosures accompanying the letter should be indicated in a notation on the left hand side below the body of the letters whenever there are too many enclosures.

vi)

Drafts should be written on separate sheets and not in continuation of notes.

vii)

The person comparing the fair copies should initial in the manuscript copy with the remarks ‘Fair copy compared’. Fair copies of all correspondence addressed to the Comptroller and Auditor General should be compared and initialed by the Asstt. Audit Officer/Section Officer. When copies of letters are sent along with these, they should be certified as true copies by the Asstt. Audit Officer/Section Officer under his/her signature.

TYPING WORK 308. Typing Work: When papers are sent for typing, the number of copies required should be indicated. The typing section should type out promptly and neatly so that the fair copy can be issued the same day. Abbreviations should be avoided in the fair copy. The typist should type his initials at the left hand side below the letters or statements. Items of work which are

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Ch.III - Page 5 of 40

marked to typing section as ‘Urgent’ ‘Express’ ‘Immediate’ ‘Out-today’ etc. should be typed immediately on receipt. Draft telex messages sent to typing section should be dealt with at once. All work should as far as possible, be dealt with on the day of receipt and the files returned to the section concerned for comparison and issue of the fair copy of the letter on the same day. Each typist should type 860 lines (7500) words per day. (CAG’s letter No.100-O&M/39-86 dated 30.1.1987) Each typist should maintain a diary to record the number of lines typed every day. He/she should submit the diary to the Asstt. Audit Officer/Section Officer in charge on every Monday and to the Branch Officer on the first Monday of every month. A Clerk/Typist is attached to every Divisional Audit Office/Branch Office. At Headquarters, the typing work is distributed among the Clerk/Typists by the Audit Officer/Sr.Audit Officer(Administration) from time to time according to the availability of men and the work load. STENOGRAPHERS 309. Stenographers: In addition to attending to officers to whom they are attached, Private Secretary to Principal Director of Audit/Stenographers deal with confidential files and documents with Principal Director of Audit/Director/Deputy Director etc. and maintain inward diaries of confidential and demi-official letters received by these officers and mark their disposal. Confidential and demi-official letters, including all enclosures thereto, are typed by the Stenographers concerned. The typing work of important letters addressed to D.A.I. and other letters marked by Principal Director of Audit/Director/Deputy Director and Branch Officers, shall also be typed by the Private Secretary to Principal Director of Audit/Stenographers concerned. They may also be given other typing work as and when necessary. Stenographers shall remain in office till the officers to whom they are attached leave the office. FILE SUBMISSION 310. Submission of files to Principal Director of Audit/Directors/ Deputy Directors: The sections which originate the files should keep track of these files through their “File Movement Registers and the Despatch Register”. In case the files or the registers are of Confidential/important nature, the sections may send them through the transit register which may be got acknowledged by the personal staff. The return of the files by personal staff should also be done with equal care and by obtaining the acknowledgement of the concerned members. (Authority: AU/BHQ/II/1/186 dt.13.2.1992). The Private Secretary to Principal Director of Audit will ensure that the files disposed of by the Principal Director of Audit are sent to the Director/Deputy Director and the Stenos to the Director/Deputy Director will ensure that the files received from the

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Ch.III - Page 6 of 40

Principal Director of Audit and also those disposed of by the Director/Deputy Director are sent to Branch Officer concerned. The Branch Officer concerned will initial the documents received back from Principal Director of Audit/Director/Deputy Director in token of his having seen it and the same should be sent back to the Asstt. Audit Officer/Section Officer and not directly to the dealing Auditor/Sr.Auditor. In case the files etc. on return have not been seen by the Asstt. Audit Officer/Section Officer, the Auditor/Sr.Auditor concerned should bring the same to the notice of the Section Officer/Asstt. Audit Officer/Branch Officer promptly. Files, Notes etc. received from out-station offices for submission to either Principal Director of Audit/Director/Deputy Director should be handed over by the receipt clerk to the respective stenos. The Private Secretary/Stenographer should submit the papers to the Principal Director of Audit/Director/Deputy Director for approval and later on arrange to send the same to the despatch clerk for their return duly obtaining the acknowledgement of the despatch clerk. (P.O.O. No.58 dated 4.9.1976). COMMUNICATION 311. Signing of Letters: Communications of the following nature should not be issued except with the previous approval of the Principal Director of Audit. (i)

Letters implying dissatisfaction or censure;

(ii)

Letters to Government (State or Union); (a) having a bearing on important questions of audit and accounting, (b) challenging decisions or orders, (c) questioning the validity of any sanctions otherwise than for merely technical defects, and (d) containing proposals for writing off or waiving off recovery of over payments;

(iii)

Letters to the Comptroller and Auditor General of India other than on routine matters;

(iv)

Letters to General Manager of the Railway or outside officers except on purely routine matters;

(v)

Letters to the Financial Adviser and Chief Accounts Officer of the Railway or any other office.

Such communications will ordinarily be signed by the Principal Director of Audit himself. In his absence from Headquarters, the letters referred to at items (i), (ii) and (v) of the preceding paragraph may be signed by the Director/Deputy Director but they should bear sufficient indication that they are being issued under direction of the Principal Director of Audit. In regard, however, to letters to authorities referred to at item (iv) above, an Audit Officer/Sr.Audit Officer may sign communications “for Principal Director of Audit”, which ordinarily means that the Principal Director of Audit himself has passed the draft or has issued unmistakably explicit orders on the subject of the letters.

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As regards item (iii), the letters shall be sent over the signature of the Principal Director of Audit except in special circumstances in which the Principal Director of Audit is not available for signing the letters. In such cases letters should be signed by Director/Deputy Director as “for Principal Director of Audit” clearly indicating the fact of the Principal Director of Audit being on tour or absent otherwise and also stating that the case will be shown to him on his return to Headquarters. (CAG’s letter No.1969-GE.II/87.86 Audit/O&M/213-98 dated 2.2.1999)

dated

21.7.1986

and

No.30-

All letters/returns and statements forwarded by the Divisional or Branch Offices to the Headquarters Office will be signed by the Divisional Audit Officer/Branch Officer concerned. However, routine returns may be signed by the Asstt. Audit Officers. When the Divisional Audit Officer is out of Headquarters on tour or on leave, the letters, returns etc. may be issued under the signature of the Asstt. Audit Officer/Section Officer if the drafts were approved by the Branch Officer. All Part I Audit Notes/Inspection Reports and Special Letters should be issued with the prior approval of the Principal Director of Audit and a copy sent to ‘COR’ section. Special Letters should be closed only with the prior approval of the Principal Director of Audit. Asstt. Audit Officers/Section Officers are authorised to file ‘nil’ reports and interim replies under their own signature. (Para 2.17.4. - Manual of Standing Orders(Admn.) Vol.I) 312. Despatch of letters: After signature by the Officer concerned, the letters to be despatched will be sent by the sections concerned to the Routine section. On receipt, these should be examined by the Routine section to see if they are complete with all the necessary enclosures. These will then be registered in the Despatch Register. The despatch serial number should be suffixed to the letter number and the date of despatch recorded on the office and fair copies. The office copy bearing the despatch stamp and the dated initials of the despatch clerk will be sent back to the section immediately thereafter. The letters intended for the same office should be despatched in one cover. Care should be taken in addressing the letter and noting the references outside the covers. In the case of letters not typed on printed office letter heads, the office stamp should be affixed. The letters despatched will be numbered serially from April to March. The citation of the subject in the Despatch Register must be brief but fully informative. A separate Despatch Register should be maintained for demi-official letters. Secret and Confidential letters despatched will also be registered in a separate register kept for the purpose. These letters will be placed in a cover, sealed with the personal seal of the officer concerned, marked ‘confidential’ or ‘Secret’ and handed over by the Stenographer to the Despatch Clerk. The Despatch Clerk should place the sealed cover in another cover which should be sealed with office seal. The outer cover should not be marked ‘Secret’ or ‘Confidential’. The office copies of the letters despatched bearing despatch stamp

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and the dated initials of the Stenographer will be returned to the section concerned. The following points should be borne in mind by the Despatch Clerk. 1) D.O. letters to local officers should be delivered to the Stenographers attached to the officers. 2) Bulky Parcels and insured articles should be sent invariably in cloth lined cover. (CAG’s letter No.2432-NGE.III/9-67 dated 20.11.1967) 3) Service Registers when sent by post should always be insured. Letters despatched to other Railway Offices or other sections situated at Secunderabad need not be routed through the ‘Routine’ section. These should be directly sent to the offices concerned and acknowledgements obtained in the Section’s delivery book. Papers to be despatched to the Divisional/Branch Offices will be listed by the ‘Routine’ section in a transit memo, prepared in triplicate. Two copies of the memo will be sent to the Divisional Branch Offices with the papers and one of these will be received in due course with the acknowledgement. The receipt of these should be watched by the Routine section clerk and the receipted copies will be attached to the original memo. The original and acknowledged copies of the transit memo should be preserved carefully. Letters to be sent to the Railway Offices outside the Headquarters and to the Divisional/Branch Offices will be sent through the Railway Free Service as far as possible. The same procedure as mentioned above will be followed in the Divisional/Branch Audit Offices in forwarding correspondence/files etc. to the Head office or other Divisions/Branches. The out-turn in respect of despatch of letters fixed by the Comptroller and Auditor General of India is 310 letters per day per clerk. (CAG’s letter No.100-O&M/39-86 dated 30.1.1987) STAMP ACCOUNT 313. Stamp Account: Wherever possible, letters will be sent by Railway Dak. In other cases, service postage stamps may be used. Particulars of letters sent by post and value of postage stamps used should be noted in the Register of Stamp Account. The stamp account should be checked daily by the despatch clerk and the stamps on hand verified by the Asstt. Audit Officer in charge on the last working day of the month. The register should be put up to the Branch Officer on the first day of every month. In the case of letters sent by registered post, the postal receipt should be pasted in the Register of Stamp Account. Whenever the stamp imprest is to be recouped, a cheque should be obtained from the Financial Adviser and Chief Accounts Officer through a pay order in favour of the Post Master and sent to the Post Office along with the indent for stamps in form T.R.35

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indicating the denominations. Service stamps required by the Divisional and Branch Offices may be obtained from Headquarters office. The value of the stamps on receipt will be entered in the stamp account. MAINTENANCE OF FILE / RECORD REGISTER OF FILES

CUSTODY

WEEDING AND DESTRUCTION

314. Weekly Arrear Report of letters: One week for ‘A’ Dak and 15 days for ‘B’ dak are allowed for clearance of letters. An arrear report in the form given in Annexure V to this Chapter should be submitted to the Branch Officer every Monday. Confidential Inward Diary and D.O. Diary maintained by the Stenographers, should be closed every Friday taking into account the communications received upto the previous Friday and put up to the Principal Director of Audit/Director/Deputy Director on the following Monday, after ascertaining the disposal of confidential/D.O. letters. 315. Supply of copies of orders and circulars to various sections: Copies of orders and circulars of the Ministries of Government of India, Railway Board, Comptroller and Auditor General of India, General Manager etc. on subjects pertaining to more than one section will be initially received by the Headquarters Sections concerned. Copies of these orders will be furnished by these sections to the other sections. Letters dealing with special investigations will, however, be initially received by the SAG section as the Principal Director of Audit may direct, and further action will be coordinated by the section. 316. Maintenance of Files: Each section should maintain a manuscript Register of Files containing columns to indicate 1. 2. 3. 4. 5.

Date of opening Number of the file Subject Date of closure Due date of destruction

The register of files should be kept as a permanent record. No new file should be opened without the approval of the Branch Officer. The files should be opened in such a way that orders and important decisions on a subject are filed separately from routine correspondence on the subject. Correspondence dealing with clarifications or amendments should, however, be dealt with in the order file itself. Only one copy of the letter should be kept in the files, spare copies being preserved separately. The subject matter dealt with generally by each section should be divided into a limited number of major heads on the pattern indicated in Annexure VI to this Chapter. The major head should be indicated by Roman numbers. Under each major head, there will be a number of minor heads which will be generally numbered in Arabic numericals. The files relating to orders should bear the letter ‘O’ after the number indicating minor head. For each minor head, a separate file is opened noting the number in the Register of Files, under the respective major heads. The first and second segments of the file number should indicate the auditing unit

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such as AuX/HQ for Expenditure Headquarters Section, AuE/SC for Establishment section of Secunderabad Division. AuC/SC for Construction Audit Section, Secunderabad, AuW/LGD for Workshop Audit Section, Lallaguda, etc. In all important files, notes and correspondence should be filed separately. No noting should be made on the PUC. In such files, in addition to numbering the pages, the correspondence (viz. receipts and issues) should also be serially numbered, this number being quoted on the note side, before the number and date of the letter while putting up disposal. The file should not be allowed to become too bulky, and a second volume of the file should be opened when a file contains about 200 folios. When a second volume of a file is opened, the first and second volumes should be distinctly marked as Volume I and Volume II. In respect of all orders files, an index sheet should be prepared in the following proforma: S.No.

Page No.

Lr.No. & Date

Gist of the orders

When a file is closed, clear remarks should be made on the cover of the file to indicate the number of years for which the file should be preserved, in accordance with the period of preservation indicated in Appendix I to Railway Audit Manual and further orders issued on the subject. Necessary entry in the relevant column of the Register of Files should also be made. The Register of Files should be submitted to the Branch Officer every month indicating the numbers of files opened and closed during the previous month. 317. Custody of Confidential and Secret Files: Confidential and Secret correspondence, documents etc. should be placed in files marked as such, and kept in the personal custody of Section Officer/Asstt. Audit Officer. These files should be given separate numbers in the Register of Files and a list thereof maintained separately by Section Officer/Asstt. Audit Officer of the section. When the Section Officer/Asstt. Audit Officer is transferred from a Section, these files and the list should be handed over to the successor and the fact mentioned in the handing over note. Confidential and secret papers relating to Administration Section, should be kept in a separate locker. 318. Maintenance of Records: Files should be neatly arranged in almirahs or racks according to major and minor heads and current files being segregated from others not frequently required. Section Officers/Asstt. Audit Officers should keep a close supervision over the work of Auditors/Sr.Auditors and general up-keep of records. 319. Weeding and destruction of records: A review of the records for the purpose of destruction should be conducted by all sections quarterly in March, June, September and December. The old records which are due for destruction should be entered in a register and submitted every quarter as mentioned above to Deputy Director/Director for approval. After approval, all confidential papers should be destroyed under the supervision of the Branch Officer and the rest sold as waste paper to the highest bidder duly obtaining the required quotations from the local waste paper merchants. The records need not be sent to Administration section.

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A list of items not included in Appendix I to Railway Audit Manual for which period of preservation has been fixed by the Principal Director of Audit is given in Annexure VII to this Chapter. Orders of the Principal Director of Audit should be obtained for destruction of such records as are not included either in Appendix I to Railway Audit Manual or in Annexure VII. The period of preservation of a closed file or register should be reckoned from the end of the financial year in which the file or register is closed. For example, if a file is closed in August 2007, and it is required to be preserved for three years, the period of 3 years should be reckoned from 1st April, 2008. (P.O.O. No.90 dated 2.7.1986) REGISTERS GENERAL INSTRUCTIONS SECTIONAL REGISTER CALENDAR OF RETURNS PENDING CASES REGISTER REGISTER OF OUTWARD CORRESPONDENCE DEAD STOCK REGISTER OO REGISTER REGISTER OF LIST OF TABLES / KEYS 320. Maintenance of Registers – General Instructions applicable to all Registers: All registers should be maintained in the prescribed form, code words assigned to the registers such as C.R. for Calendar of Returns, S.R. for Sectional Register etc. should be indicated above the title of the register. Name of the Section, year, due dates of submission to Branch Officer/Deputy Director/Director and period of preservation also should be indicated on the cover of the registers as in the specimen below: C.R. OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT SOUTH CENTRAL RAILWAY SECUNDERABAD Administration Section Calendar of Returns 2007-2008 To: B.O. every week To: Deputy Director/Director once in a month To be preserved for 2 years (upto 31.03.2010) Reference to the authority such as para number of Railway Audit Manual, P.O.O. etc. requiring the maintenance of the register should be quoted on the first page of the register. The registers should be page numbered and the first and third pages set apart for index and record of submission. Whenever new registers are opened, the Section Officer/Asstt. Audit Officer should record a certificate on the first page of the Register to the effect that all items have been correctly carried forward from the old register.

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321. Sectional Register: Each Section should maintain a Sectional Register indicating the following: (i) (ii) (iii) (iv) (v) (vi)

Sanctioned strength; Nominal Roll in the prescribed proforma including Residential address; Duties of the section as a whole; Duties of each individual member; Summary of important orders affecting the work of the section; Residential address of the officials

Duty list of Auditors/Sr.Auditors and Section Officers/Asstt. Audit Officers should be got approved by the Deputy Director/Director. Subsequent changes, if any, should have the prior approval of Deputy Director/Director. Signatures of the staff posted to the section should be obtained in the register in token of having noted the duty list. As and when required, additional items of work may be allotted to staff by Branch Officers by written orders which should be filed separately and preserved permanently like Sectional Register. The Sectional Register should be maintained properly and in such a way that fixing of staff responsibility in cases of failure will be rendered easy. It should be preserved permanently. As and when changes occur in the section due to transfer etc. an entry may be made in the register and the register submitted to the Branch Officer by 15th of each month. (Para 110 of Railway Audit Manual) 322. Calendar of Returns: Each Section of the office should maintain a Calendar of Returns for each financial year showing the due and actual dates of despatch of returns or submission of reports and registers to the Branch Officer, Principal Director of Audit, Comptroller and Auditor General of India etc. The returns/reports etc. should be classified as weekly, fortnightly, monthly, quarterly, half-yearly, yearly and occasional, and entered in separate sections of the Register. Under each section, the returns should be entered in chronological order. Particulars such as due date, to whom due, authority for the submission of the return should be indicated in the register. Wherever the date on which a return should reach Comptroller and Auditor General of India/Principal Director of Audit is specified, this should be indicated in the Calendar of Returns. Sections which receive returns from other sections/offices, should maintain an Inward Calendar of Returns to watch the receipt of returns. This may be maintained in the Calendar of Returns of the Section by allotting separate pages. Section Officers/Asstt. Audit Officers should personally make entries of dates in the Calendar of Returns. Branch Officers should test check the dates at the time of every submission of the Calendar of Returns in such a manner that all items are covered in a year. Branch Officer should indicate the items test checked in a separate folio of the register. Sections at Headquarters should put up their Calendar of Returns to Deputy Director/Director once a month. Units located at outstations may put up the Calendar of Returns to Deputy Director/Director/Principal Director of Audit during their local visits.

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The Calendar of Returns in respect of one or two units at Headquarters selected by the Principal Director of Audit monthly should be test checked by the Internal Audit Section and results of test check submitted to Principal Director of Audit for perusal. (P.O.O. No.97 dated 16.2.1987) Particulars of delayed/pending returns should be indicated in a separate section of the register in the following proforma and the reasons for delay explained, while putting up the register to the Branch Officer. Part ‘A’ Delayed Returns Name of the Due S.No. Category of return & section and to date whom due Page Number

Reasons for delay

Part ‘B’ Pending Returns Name of section Due S.No. Category of and to whom due date return and Page Number

Date of actual submission/ despatch

Reasons for delay and action taken to speed up matters.

(Para 97 of Railway Audit Manual) 323. Pending Cases Register: Cases on which action is required to be taken at a later date as well as other cases which, owing to any reason, could not be disposed off finally should be noted in the pending cases Register. Only one entry should be made on a folio of the register so that sufficient space may be available for recording the progress of the case from time to time. The register should contain brief history of the case, reasons for keeping it pending, the date when further action is required to be taken and the position of the case from time to time. When a case is finally disposed off, this fact should be indicated in the register and attested by the Section Officer/Asstt. Audit Officer. The fly-leaf for submission of the register to the Branch Officer should indicate the opening balance, additions, and deletions during the month, and the closing balance, with the serial numbers of the outstanding cases. The register should be submitted to the Section Officer/Asstt. Audit Officer every week and to the Branch Officer on or before the 5th of every month. The proforma of the register is given in Annexure VIII to this Chapter. 324. Register of Outward Correspondence: All letters for which replies are due should be entered in the Register of Outward Correspondence. The register should be put up to the Branch Officer on the last working day of the month indicating the Opening Balance, number of letters issued during the month, number closed during the month and the balance. For the letters not replied to, upto first two, monthly reminders shall be issued by the Asstt. Audit Officer and the first three reminders shall be issued at Branch Officer’s level as D.O. reminders at intervals of 15 days. Important cases where no replies are forthcoming inspite of the D.O. reminders should be put up to Director/Deputy Director/Principal Director of Audit, to be taken up at higher level.

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325. Register of Reminders: A reminder register indicating the action taken on all the reminders received should be maintained in the following proforma and submitted to Branch Officer on every Monday. S.No.

Reminder No. From and date whom received

Subject

Connected Action file No. taken

(Para 102 of Railway Audit Manual) 326. Register of Audit Notes and Special Letters: Each auditing section should maintain two registers to deal with: (i) (ii)

Draft Audit Notes and Part II Audit Notes Part I Audit Notes and Special Letters

The registers should be maintained in the form given in Annexure IX to this Chapter. These registers should be submitted to the Branch Officer on or before 5th of every month. CODES / MANUALS SUPPLY

CORECTION SLIPS / POOS

GAZETTE

327. (a). Codes, Manuals and other publications: Copies of the various codes issued by the Railway Board are supplied free for official use by the Manager of Publications, New Delhi. Subject to the limitations in the Schedule of Powers and other rules or orders of competent authority, Principal Director of Audit is empowered to purchase from the allotments for contingencies books and periodicals required for the Head Office and Branch Offices. All Codes, Manuals etc. received in the office are distributed to various sections. (b). Supply of Codes/Manuals at concessional rates to Examination candidates: Staff who are preparing for the Departmental Examinations are eligible to obtain the books of general use in the office at concessional rates only once. (Para 2.12 of Manual of Standing Orders(Admn.) Vol.I) 328. Correction Slips: (a) For the efficient functioning of audit, it is essential that all Codes and Manuals and other books of reference are kept corrected upto-date. For this purpose, the Headquarters sections have been made responsible for the maintenance of master copies of Code Books, Manuals etc. as indicated in Annexure X to this Chapter. Correction slips will be initially marked in the dak to the Headquarters section concerned which will supply copies to other sections. The Branch Officers should also personally ensure that the above instructions are invariably complied with by the sections in their charge and furnish a certificate to that effect to ‘COR’ section quarterly (on 15th of April, July, October and January). The

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Headquarters Sections concerned should also furnish the List of Correction Slips (both advance and printed) received during each quarter to all Divisions/Sections on the same dates as specified above under advice to ‘COR’ Section. The distribution of the correction slips as and when received and the quarterly list of correction slips may be confined to only such publications which are commonly required for reference by the auditing units. In order to update the Manual, the nominated sections should review the existing provisions with reference to further instructions issued through circulars on the subject, changes in accounting procedure and suggest issue of Correction Slips wherever necessitated through COR Section. For this purpose, the earmarked sections should send quarterly a report to COR Section indicating the paras requiring correction and the correction slips proposed. The report should reach COR Section by 15th of April, July, October and January every year. (P.O.O. No.118 dated 22.2.1991) The sections indicated in Annexure XI to this Chapter should initiate action for the issue of correction slips through ‘COR’ section to the Office Manual as and when necessary. (P.O.O.No.45 dated 8.12.1972) (b) P.O.Os. issued by Financial Adviser and Chief Accounts Officer: The scrutiny and distribution of P.O.Os. issued by the Financial Adviser and Chief Accounts Officer to all sections/divisions devolve upon the Headquarters Auditing sections concerned. OFFICE LIBRARY 329. Office Library: Each Divisional Audit Office, Branch Office and Sections at Headquarters will have an office library. Principal Director of Audit and Directors/Deputy Directors have separate libraries. The library of the Administration Section and Principal Director of Audit’s and Director’s/Deputy Director’s libraries will be maintained by a clerk nominated for the purpose. Libraries in the Divisional/Branch Offices will be maintained by the Clerk/Typist attached to those offices. The clerk entrusted with the maintenance of the library should maintain a register indicating particulars of books or publications in the library with details such as year of publication, date of receipt etc. A separate register should be maintained for noting down issue of books to the staff and their return. The office library will contain all the codes, manuals etc. The libraries of the Principal Director of Audit/Director/Deputy Director will consist of only such of the Railway and Civil Codes and Manuals which are required for dayto-day reference. The books in stock on 31st March every year in the office library and the Principal Director of Audit and Director/Deputy Director libraries should be verified by a Section Officer to be nominated by the Deputy Director/Director in charge of Administration. The result of such verification should be submitted to Director/Deputy Director (Administration). Certificates of verification of books in the libraries in Branch/Divisional Offices should also be submitted to the Director/Deputy Director (Administration). When codes, manuals etc. are found missing during such verification, immediate action should be taken to fix the responsibility for the loss, and orders of the Principal Director of Audit obtained for recovery/write off. (Paras 2.15.1 to 2.15.2 of Manual of Standing Orders(Admn.) Vol.I)

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330. Gazettes: Routine section will keep the gazettes filed carefully, section-wise in serial order, after they are seen by the Gazetted Officers. Other sections to whom the Railway Gazettes are supplied should file them carefully, section-wise in serial order, after taking necessary action on matters with which each section is concerned. OFFICE MAINTENANCE FURNITURE TELEPHONE UPKEEP OF TYPEWRITERS

NEWSPAPERS & PERIODICALS SECURITY CLOSING OF RARC

331. Furniture: Furniture required for general use in the office such as almirah, racks etc. may be provided according to the requirements of each office. Supply of furniture for the use of the individual staff or officers is governed by the scales laid down by the Comptroller and Auditor General of India as indicated in Annexure XII to this Chapter. Furniture required for the office may be purchased locally, subject to availability of funds. In regard to purchase of steel almirahs, safes, chairs, tables etc. rate contracts entered into by the D.G.S.&.D. with the manufacturers of repute should be taken advantage of. 332. Dead Stock Register: Section Officers/Asstt. Audit Officers are responsible for the maintenance of the furniture available in their sections. The list of dead stock items handed over by Administration Section may be displayed and kept in each section for easy verification. If, at any time, any of the dead stock items in one section is transferred to another section, it should be shown as “issue” in the remarks column of the list and intimated to Administration section for necessary adjustments in the Master Dead Stock Register as well as in the Guard File maintained in Administration Section. Similarly, the receiving section should make necessary entry in the list as “receipt”. The furniture available in each section should be entered in the respective Sectional Registers. An annual certificate of verification of dead stock items available in each section, should be sent to Administration section by the end of December, every year through the respective Branch Officers, after recording necessary certificate of test check. (Para 108 of Railway Audit Manual) 333. Telephones: Calls on the P&T Telephone should be kept to the minimum, and the Railway Telephone should be used wherever available. Private calls should not be made on the P&T Telephones except when urgently required. Trunk calls on private account from the office telephone should be made only in exceptional cases with the prior permission of the Audit Officer/Sr.Audit Officer (Administration)/Branch Officer. A record of such private calls should be made in the ‘Register of Trunk Calls and Phonograms’ maintained in the Administration Section. Charges for the private trunk-calls should be deposited by the staff concerned as soon as the Telephone bill is received. Sr.Audit Officers/Audit Officers, Asstt. Audit Officer (Administration) and Private Secretary to Principal Director of Audit and Personal Assistants to Director/Deputy Director will be responsible to see that no unauthorised use of the P&T Telephone is made.

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The Administration Section will send once in a year i.e. as on 1st January, a report to the Comptroller and Auditor General of India regarding distribution of Gazetted posts and telephone list of Group ‘A’ Officers in the prescribed proforma. (CAG’s letter No.4633-GE.I/79-86 dated 9.9.1986) Similarly, every half-year on 15th January and 15th July, information regarding telephone numbers of officers upto the level of Section Officers in the prescribed proforma should also be furnished to Comptroller and Auditor General of India. (CAG’s letter No.661-RAI/17-50/83 dated 27.12.1983) The Stenographers should keep the telephone directories corrected upto-date. 334.(a). Newspapers and Periodicals: Newspapers and periodicals shall be received by the Library Clerk who after noting their receipt in the register maintained for the purpose, shall stamp them and hand over to the Private Secretary to Principal Director of Audit. After the periodicals have been seen by the Principal Director of Audit and Director/Deputy Director, they will be sent to Secretariat for scrutiny and cutting out important and interesting matters for an examination. Thereafter, the papers will be sent to Administration Section for disposal. (P.O.O. No.71 dated 13.11.1984) (b) Newspapers clippings appearing in the local newspapers (English and vernacular) relating to coverage of Audit Reports or which may be of importance from an Audit point of view, should be sent in the prescribed format as and when they appear, by Secretariat section to the Comptroller and Auditor General of India. (CAG’s D.O. Letter No.F.66/O&M/87 dated 7/8.7.1987) 335. Upkeep of Typewriters: Typewriters should be allotted to the Typists/Stenographers by name who will be personally responsible for proper handling including periodical cleaning and maintenance of machines. The machines should always be kept covered and locked when not in use. A Typewriter card giving complete history of each typewriter should be maintained upto-date by the person to whom the machine is allotted. The Administration Section will maintain a register containing full particulars of all machines including those in the Branch Offices. In this register, particulars of machines together with charges incurred from time to time on account of repairs and spare parts should be recorded. These entries should be attested by the Audit Officer/Sr.Audit Officer (Administration) at the time of passing the bills for payment. Section Officers/Asstt. Audit Officers should ensure that instructions regarding up-keep and maintenance of typewriters and writing up of typewriter cards are followed in the respective sections. 336. Office Orders and Office Order Register: (i) Staff Office Order: Appointments, transfers, promotions, leave and other personnel matters of members of staff are notified through Staff Office Orders. These S.O.Os. should be entered in the S.O.O. Register maintained in the Administration Section and should be serially numbered. A separate register should be maintained for Office Orders issued in connection with appointments, transfers etc. of Gazetted Officers.

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(ii) Procedure Office Order: Orders dealing with changes in procedure, interpretation and modification of rules etc. received from the Comptroller and Auditor General or approved by the Principal Director of Audit for implementation, are notified through P.O.Os. These P.O.Os. affecting audit procedure and P.O.Os. on other matters will be entered in the P.O.O. Register maintained in Co-ordination Section and serially numbered. P.O.Os. emanating from other sections should also be routed through Coordination Section which will arrange to obtain the approval of the Principal Director of Audit and assign the serial number with reference to the P.O.O. Register. If a P.O.O. warrants a correction to the Office Manual, the ‘COR’ section should simultaneously draft the correction slip and obtain the approval of the Principal Director of Audit. The correction slips should be serially entered in the Register of Correction Slips maintained. Orders or decisions of a transitory nature like posting of Group ‘D’ to sections, temporary re-distribution of work among Clerk/Typists etc. need not be notified through S.O.Os. or P.O.Os. and should be issued through Office Orders or Circulars, as the case may be. 337. Departmental Security Instructions: Detailed instructions contained in Ministry of Home Affairs, Office Memorandum No.21/1/56 Poll.1 of 6.5.1957 should be borne in mind by the members of staff who are required to deal with classified documents. (File Au/A/Con/30). 338. Security arrangements of the Office: The following procedure relating to security arrangements of the office has been laid down so as to conform to the directives issued by the Ministry of Home Affairs (Government of India) and the Comptroller and Auditor General of India. The Clerk nominated for the supervision of the closing of the main office building should ensure that the office is locked every day at 17.45 hours. The keys should be put in a small box and pasted with a slip with the dated signature of the Clerk and the sealed box left with the Chowkidar. Every day one hour before opening the office the Clerk nominated for the purpose, should verify the condition of the sealed box containing the keys as also the locks of the doors of the office and thereafter arrange to open the office. The Clerk should enter the time of opening and closing of the office in a register maintained for the purpose. The procedure outlined above should be followed by the sections situated in the Rail Nilayam, Traffic Accounts Building, Divisional Audit Office, Construction Audit Office and Workshop and Stores Audit Office. After the offices are closed for the day, the Clerk concerned should arrange to hand over the sealed box containing the keys of the respective office to the Chowkidar of the Main Office building and sign in the register. Similarly, the Clerk concerned should verify the condition of the sealed box and sign in the register in token of it, before opening the sealed box in the morning brought from the main office. Whenever the office is required to be opened during Holidays or after it is sealed for the day, prior permission of Deputy Driector/Director should be obtained and

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Audit Officer/Sr.Audit Officer (Administration) informed accordingly who will issue permits. The permits issued must be handed over to the Chowkidar on duty invariably by the staff authorised to open the office. The Chowkidar should hand over the permits to the Clerk of the Routine section who should submit them to the Audit Officer/Sr.Audit Officer (Administration) on the following day. The staff who are permitted to open the office should also follow the procedure for opening and closing of office mentioned above. (Au/A/Confdl./30 dated 10.5.1983) 339. Closing of the Audit Recreation Club: The Audit Recreation Club should cease its activities for the day by 20-00 hours sharp. The club room should be locked and the key placed in a box, sealed and signed by the last member present in the club. The sealed box should be handed over to the Chowkidar of the office and in token of it, the member should sign in the register kept for the purpose indicating the time of closure. Similarly, when the club is to be opened, the member should obtain the sealed box containing the key of the club after signing in the register maintained for the purpose. (CAG’s letter No.1229-NGE.I/119-68 dated 15.5.1968) 340. Issue of keys of tables, cupboards etc. and custody of duplicate keys: A register will be maintained by the Asstt. Audit Officer (Administration) in which complete particulars of all tables, cupboard, etc. with locking arrangements, such as description, maker’s name, painted number, name of the official to whom the furniture is issued and key number will be recorded. The signature of the official to whom the original key is issued will be obtained in this register at the time of initial allotment and whenever there is a change in the person using the furniture. Duplicate keys of tables, cupboards etc. in use by Audit Officers/Sr.Audit Officers will be kept in the custody of the Deputy Director/Director. Duplicate keys of tables/cupboards etc. used by staff will be kept in the custody of the Branch Officers concerned. The Deputy Director/Director and the Branch Officers will arrange to maintain registers for recording the particulars of the duplicate keys in their custody. Acknowledgement of the Chowkidar/Group ‘D’ concerned will be obtained by the Senior Auditor in charge of care-taking (Administration) in the register maintained by him, for the keys of garages, lavatories etc. In the event of loss of a key, the official concerned should intimate the same to the Audit Officer/Sr.Audit Officer (Administration) and to the Officer with whom the duplicate keys are kept. The duplicate keys will be issued after obtaining the signature of the official in the register maintained. When replacements for lost keys are obtained, the cost of the same will be recovered from the official responsible for the loss of the original key.

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Annexure IV (Para 306) CENTRAL ‘A’ DAK REGISTER Date of receipt and Sl.No.

Letter No. and Date

From whom received

Subject in brief

Section to which given

20.4.2000 74

371-Rly/SE/12-122/98 dated 17.4.2000

C&AG

ATN on Audit Para No.3.4.2/199798-Non-recovery of maintenance charges due to non-execution of agreement with the siding owers

24.4.2000 75

RS/S/98/7906 dated 11.4.2000

Railway Board

Supply of Corrosion Resistent Steel Sheets and Plates

Reports

Stores Headquarters

Annexure IV (Para 306) ‘B’ DAK REGISTER OF ROUTINE SECTION Date: 18.4.2000 No. of ‘B’ Dak letters received

51

Distribution of ‘B’ Dak letters ----------------------------------------------------------------------------------------------------------------------------COR CON/SC THQ HYB. SC. GM’s EHQ FA&CAO SHQ TA BHQ DIVN DIVN Office -

3

09

2

4

5

-

1

-

7

27

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Annexure IV (Para 306) A/B DAK Date of receipt (1)

Sl. No. (2)

Lr.No. and date (3)

From whom received (4)

Subject (5)

Initials of Auditor (6)

Ref. To File No. (7)

Initials of Auditor (8) Annexure V (Para 314)

‘A’ & ‘B’ DAK ARREAR LIST OF SECTION OF OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT, SOUTH CENTRAL RAILWAY Letters received during the week/fortnight:

‘A’ Dak from To Receipt Nos. ------------------------------------------------------------‘B’ Dak from To Receipt Nos.

but not disposed of by

Total Nos. ‘A’ Dak / ‘B’ Dak: (A) Letters outstanding for previous period : (B) Letters received during the period : Total : (C) Ldtters disposed of finally : Balance(Details at D & E)

Category Receipt No. & Date D(ii) & E(ii)

Lr.No. & Date

‘A’ Dak / ‘B’ Dak

(D) Letters kept pending i) for less than a month ii) for over a month of receipt(Details below) (E) Letters on which action is outstanding i) over one week/15 days but less than 15 days/month of receipt. ii) Over 15 days/month of receipt (details below) From whom Subject Explanation for delay received

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Annexure VI (Para 316) Model List of Major and Minor Heads by which files should be classified Letter ‘O’ added to file Nos. represents files containing orders: Major Head

Minor Head

Administration: I. Recruitment and Training

1. Recruitment (AuA/I/1/0) 2. Training (AuA/I/2/0)

II. Departmental Examinations

1. SOG Examinations (AuA/II/1/0) 2. Departmental confirmatory examination (AuA/II/2/0) 3. Revenue Audit Examination (AuA/II/3/0)

III. Deputations

1. Gazetted (AuA/III/1/0) 2. Non-Gazetted (AuA/III/2/0) 3. Non-Gazetted Auditors (AuA/III/3/0) 4. Non-Gazetted Stenos, LDCs (AuA/III/4/0)

‘COR’ Section:

I. Returns to CAG(R)

1. Audit of Railway Board’s sanctions (Au/COR/II/1/0) 2. Arrear Report (Au/COR/II/2/0)

Establishment Audit: I. Pay

1. Pay including special pay, personal pay etc. (AuE/HQ/I/1/0) 2. Fixation of Pay (AuE/HQ/I/2/0)

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II. Allowance

1. Dearness allowance (AuE/HQ/II/1/0) 2. CA & HRA (AuE/HQ/II/2/0) 3. Travelling Allowance (AuE/HQ/II/3/0)

Expenditure Audit: I. Tenders and Contracts

1. Tenders and Contracts (AuX/HQ/I/1/0)

II. Results of Test Audit

1. Draft Audit Notes (AuX/HQ/II/1/70-71) 2. Part I Audit Notes (AuX/HQ/II/2/70-71) 3. Special letters (AuX/HQ/II/3/70-71)

Books and Budget Section: I. Appropriation Accounts, Finance Accounts and Capital and Revenue Accounts

1. 2. 3.

Appropriation Accounts – Grant No.1 (Separate file for each grant) Au/B/HQ/I/1 (AuB/HQ/I/1/0) Capital and Revenue Accounts (AuB/HQ/I/2/0) Finance Accounts (AuB/HQ/I/3/0)

II. Returns

1. Returns to COR (AuB/HQ/II/1) 2. Administration (AuB/HQ/II/2)

III. P.O.Os.

1. P.O.Os. issued by the Principal Director of Audit (AuB/HQ/III/1) 2. Local office orders issued by the Sections (AuB/HQ/III/2) 3. P.O.Os. issued by Accounts Office (AuB/HQ/III/3)

Stores Audit Section: I. Purchase Policy and Accountal

1. Direct Purchases (AuS/HQ/I/1/0) 2. Purchase through DGS&D (AuS/HQ/I/2/0)

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3. Purchase through Controller of Printing and stationery (AuS/HQ/I/3/0) II. Reviews

1. Efficiency of internal check & review of Accounts Office work (AuS/HQ/II/2/2) 2. Tenders and Contracts (AuS/HQ/II/2/2)

Workshop Audit: I. Acts & Regulations affecting Service conditions

1. W.C. Act (AuW/HQ/I/1/0) 2. H.E. Regulations (AuW/HQ/I/2/0)

II. Casual Labour

1. Casual Labour (AuW/HQ/II/1/0)

III. Incentive Scheme

1. Incentive Scheme(AuW/HQ/III/1/0)

IV. Inspections

1. Programme of Inspections (AuW/HQ/IV/1) 2. Inspection Reports (AuW/HQ/IV/2/1/1970-71) (For Inspection of each office separate case file should be opened)

Traffic Audit: I. Frauds, Losses & Embezzlements

1. Frauds, Losses and Embezzlements (Au/TA/II/1) 2. Loss of cash at SC Goods Shed (Au/TA/I/2)

II. Correction slips to Codes and Tariffs

1. C.S. to Coaching Tariff (Au/TA/II/1) 2. C.S. to Goods Tariff (Au/TA/II/2) 3. C.S. to Red Tariff (Au/TA/II/3) 4. C.S. to Accounts Code Vol.II (Au/TA/II/4)

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III. Rates & Circulars

1. Rates and Circulars – LRA (Au/TA/III/1) 2. Rates and Circulars – FRC (Au/TA/III/2)

Inspection Section (Headquarters): I. Inspections

1. Programme of Inspection (Au/IHQ/I/1/0) 2. Advices to Offices regarding commencement of Inspections (Au/IHQ/3) 3. Inspection Reports (for each office) separate file such as Au/IHQ/I/4/1/70-71

II. Periodical Returns

1. Returns to ‘COR’ (Au/IHQ/II/1) 2. Returns to Administration and other sections (Au/IHQ/II/2)

N.B. The list is only illustrative and not exhaustive. *********

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Annexure VII (Para 319) Statement showing the period of preservation of the various kinds of records maintained in the Principal Director of Audit’s Office, South Central Railway, which do not appear in Appendix I to the Railway Audit Manual. Sl.No.

Description of records

Period of preservation in complete account years

I. REGISTERS: 1. Register of Railway Board’s sanctions 2. Register of General Manager’s sanctions 3. Register of Head of Department’s sanctions 4. Register of reminders 5. Register of recoveries at the instance of Audit 6. Register of review of contracts 7. Register of common defects noticed in Administrative Offices 8. Register of review of Accounts Office work 9. Register of original audit by Gazetted Officers/Section Officers 10. Register of cases for possible inclusion in Audit Report 11. Register of draft paras 12. Register of Railway Board’s Dak Summary 13. Register of progress of inspections 14. Register of important cases 15. Register of review of productivity of outlay 16. Register of points to be seen at inspections 17. Register of sanctioned strength (Administration Section) 18. Audit expenditure register (Administration) 19. Cash receipt and remittances register 20. Register of Liabilities

20 years 20 years 20 years 02 years 03 years 05 years 02 years 03 years 03 years 02 years 10 years 3 years for COR & 2 years for others 06 years 05 years Permanent Permanent Permanent 05 years 05 years 05 years

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Sl.No.

Description of records

21. Register of Typewriters 22. Hindi Roster 23. Register of S.O.Os. 24. Stationery account Register

Period of preservation in complete account years Permanent Permanent 03 years 02 years

II. FILES ETC.: 1. Requisitions for vouchers 06 years 2. Dak Slips 02 years 3. Inspection Programme File 03 years 4. Man-Hours Statistics (Except Orders) 02 years 5. Setting up of Benevolent Fund Administration Section - Permanent, Others - 5 years 6. Review of Court Cases 03 years 7. Monthly Statistics of repairs to Locomotives, Carriages and Wagons etc. (Published by the Railway Board) 05 years 8. Annual Statistics of Locomotives, Carriage and Wagons etc. (Published by the Railway Board) 05 years 9. Review of published statistics of Railways - File 05 years 10. File regarding Power cost statements 03 years 11. File regarding wagon-building programme (sanctions of the Railway Board) 20 years 12. File regarding arbitration awards 10 years 13. File regarding division of rolling stock between India and Pakistan Permanent 14. File regarding the introduction of uniform cost accounting in Railway Workshops (Sarkar’s report) Permanent 15. Rolling stock statements of Ex.B.L. Railway Permanent 16. Incentive Schemes papers etc. 10 years 17. Material for all India Civil List 01 year

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Sl.No.

Description of records

18. Annual Returns regarding deputationists 19. South Central Railway Fortnightly Gazettes 20. Papers relating to Gazetted Officer’s meeting 21. Petty works programme 22. Quarterly/Half yearly progress reports of Major works received from the Administration and similar statements 23. Returns to COR and other Headquarters Sections 24. ‘A’ dak and ‘B’ dak Arrears lists 25. Correspondence with other Audit Offices 26. Statistics of volume of work done 27. Papers relating to certification of eligibility of leave to Gazetted Officers of the Accounts Department and check of their service statements 28. Copies of quarterly printed list of Gazetted establishment received from the Railway Administration 29. Report on the check of L.P.R. cases 30. Paper relating to review of Foreign Service Contribution 31. Monthly Lists of Tenders 32. A.Ts. received from COS 33. Copies of Auction Sale orders 34. Copies of Tenders placed by the Railway Board 35. Survey Board Reports 36. Head of Department’s sanctions 37. SOG Exam File 38. Answer Books of departmental examination (confirmatory)

Sl.No.

Description of records

Period of preservation in complete account years 3 years after the deputationists return to parent office. 02 years COR-5 years, Others-2 years 10 years 02 years COR-3 years, Others-2 years 02 years 03 years after case is closed 03 years 02 years 05 years 03 years 02 years 02 years 02 years 02 years 03 years 03 years 05 years 05 years 1 year after the declaration of results if no petition is pending Period of preservation in complete account years

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39. Arrear Claims

3 years or 1 year after completion of Audit whichever is latter 1 year after final recovery 1 year after final recovery 05 years

40. Festival Advance 41. Advance of pay on transfer 42. General Inward & Outward Index registers

(Authority: HQrs., Office’s Circular No.05-O&M/1993 No.673-O&M/62-90 dated 15.10.1993) Note:1. Subsidiary selection registers are being maintained by sections in some cases viz. for JVs, stores bills etc. The period of preservation of these should be the same as for selection Registers. Similarly, papers on which selection is taken separately in some cases should be preserved for the same period. 2. S.No.23 of the list: ‘A’ and ‘B’ Dak returns sent to ‘COR’ section for consolidation etc. may be preserved in that section for 3 months only.

*****

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Annexure VIII (Para 323) REGISTER OF PENDING CASES To Asstt. Audit Officer/Section Officer : Every Monday th Branch Officer : 5 of every month To be preserved for two years Record of Submission

Month of Submission

(1)

Mar’2000

Date

(2)

1.4.2000

Opening Balance

No. issued during the Month

Total

(3)

(4)

(5)

10

2

12

No. closed during the month (6)

2

Closing Balance Initials of (Sl.Nos. of cases) ---------------------------------------Ar./ SO/ B.O. Sr.Ar AAuO (7) (8) (9) (10)

10 (1 to 5, 7 to 9, 11 to 12)

Contd…….

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Annexure VIII (Para 323) Contd….

PARTICULARS OF CASES

Sl.No. (1)

Case No. and File No. (2)

1.

Au/EHQ/42/98-99

Subject and action required

Action taken

(3)

(4)

Certain overpayments of C.A. resulting from a wrong interpretation of rule were noticed, requiring adjustments for earlier periods. F.A. &.C.A.O. has promised to review all cases and start recovery within three months vide his letter dated 20.12.1999. The Accounts Office file should be reviewed in the first week of August to see if the action as proposed was taken.

Dec’1999. The file has been reviewed. It is observed that the review in respect of all the departments except two departments has been carried out. This has been taken up with FA&CAO vide letter No.Au/EHQ/42/ 98-99 dated 24.12.1999.

Id/- 15.8.1999

Id/- 25.12.1999

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Annexure IX (Para 326) OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT SOUTH CENTRAL RAILWAY SECUNDERABAD. …… _____________Section. Register of Special letters/Part I Audit Notes (2000-01) (To be preserved for 5 years) INDEX 1. Record of submission. 2. Issue of Special letters 3. Issue of Part I Audit Notes In the record of submission, particulars such as opening balance, (No. & Items) issued during the month, closed during the month and outstandings at the end of the month should be given. Special letter (Not more than 2 letters should be noted on each page) Sl. No.

1.

Lr.No. & Dt. To whom and subject issued

2.

3.

No.of Paras involved & brief particulars of the Objection (use catchwords) 4.

Money value involved 5.

Ref. to inward diary, if any 6.

Date of Reminder/ Rejoinder 7.

No. & Dt. of final Remarks reply 8.

9. Contd…..

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Annexure IX (Para 326) Contd…

Part I Audit Notes (Not more than 2 cases should be noted on each page) Sl. No.

1.

Lr.No. & Dt. To whom and subject issued

2.

3.

No.of Paras involved & brief particulars of the Objection (use catchwords) 4.

Money value involved 5.

Ref. to inward diary, if any 6.

Date of Reminder/ Rejoinder 7.

No. & Dt. of final Remarks reply 8.

9.

Contd……

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Annexure IX (Para 326) Contd…. ROUGH AUDIT NOTES Sl. No. (1)

Audit Note No.& Date (2)

Particulars

No. of Paras (4)

(3)

Money value if known (5)

Action taken (6)

Part II AUDIT NOTES Sl. No. (1)

Ref. to RAN No. & Date (2)

Pt.II Audit Note No. & date (3)

Particulars

No. of Paras

(4)

(5)

Money value if known (6)

Action taken

(7)

Note: The Register of Progress of Inspections and the disposal of Inspection Reports should be maintained as indicated in Chapter XVI (Inspections) of the Office Manual ……..

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Annexure X (Para 328) LIST OF CODE BOOKS/MANUALS ETC. ASSIGNED TO VARIOUS HEADQUARTERS SECTIONS FOR UPKEEP …….. Sl. No. I.

Headquarters Section Administration

II.

Coordination

III.

Special Audit Group

IV.

Books and Budget

Particulars of Code Books/Manuals etc. assigned 1) CAG’s Manual of Standing Orders(Admn.) 2) FRs., SRs and CSRs 3) GPF Rules 4) Medical Attendance Rules 5) GFRs 6) Delegation of Financial Powers 7) CCS (Conduct) Rules 8) CCS (Control, Classification and Appeal Rules) 1) Secret Memorandum (Railways & Civil) 2) Railway Audit Manual 3) Manual of Standing Orders (Audit) 4) Office Manual 5) Introduction to Indian Government Accounts and Audit 6) Audit Reports (State and Central) 7) PAC’s Reports and connected publications 8) CAG’s quarterly Audit Bulletins 1) Railway Board’s Manual of Statistical Instructions Vol.I and II 2) General Manager’s Annual Reports 3) Report of the Railway Board on Indian Railways 4) History of Indian Railways 5) Domestic Statistics 6) Constitution of India 1) Railway Accounts Code - Part I 2) All volumes of Civil Account Codes 3) CAG’s list of Major and Minor heads of Accounts 4) Compilation of Treasury Rules 5) Pay and Accounts Office Manual and Forms 6) Railway Budget Papers including Pink Books, Demand for Grants, Explanatory Memorandum on Railway Budget, Printed Appropriation Accounts and connected publications 72

Ch.III - Page 36 of 40

Annexure X (Para 328) Contd…. V.

Establishment Headquarters

VI.

Expenditure Headquarters

VII.

Traffic Audit

VIII. Workshop

1) Railway Establishment Code Vol.I and II 2) Railway Board’s Establishment Manual 3) Schedule of Powers (Establishment matters and Accounts Department) 4) FA&CAO’s Manual (Establishment and P.F. Sections) 5) Pension Manual 6) Workmen Compensation Act 7) Minimum Wages Act 8) Hours of Employment Regulations 9) Payment of Wages Act 1) Railway Engineering Code 2) Schedule of Rates 3) Hand Book of specifications 4) Schedule of Powers (Works, Catering, Miscellaneous and Public relations matters) 5) Railway Board’s Way and Works Manual 6) Central Public Works Department Accounts Code 7) Open Line Works Programme 8) Railway and Finance and Administration Code (F & G) 1) Railway Traffic (Commercial) Code 2) Railway Accounts Code Part II Traffic Accounts 3) Rate Tables, Tariffs, Supplements and other publications issued by I.R.C.A. and Railway Administration 4) I.R.C.A. Conference Rules 5) Schedule of powers (Traffic matters) 6) Publication on simplification of traffic accounts 1) Railway Mechanical Code 2) Railway Board’s Rolling Stock Programme 3) FA&CAO’s Manual (Workshop Accounts) 4) Factories Act

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IX.

Inspection Headquarters

1) Pass Manual, FA&CAO’s Manual (Inspection Section)

X.

Stores Headquarters

1) Railway Stores Code 2) Schedule of Powers (Stores Matters) 3) FA&CAO’s Manual (Verification Section)

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Annexure XI (Para 328)

Chapter I

Organisation

Admn. Section

Chapter II

Departmental Regulations

Admn. Section

Chapter III

General Office Procedure

Admn. Section

Chapter IV

Administration

Admn. Section

Chapter V

General Audit Procedure

COR Section

Chapter VI

Expenditure Audit

XHQ Section

Chapter VII

Establishment and P.F. Audit

EHQ Section

Chapter VIII Books and Budget including Appripriation Audit

BHQ Section

Chapter IX

Workshop Audit

Workshop Audit Lallaguda

Chapter X

Stores Audit

SHQ Section

Chapter XI

Traffic Audit (Coaching and Goods)

TA (Coaching) Section

Chapter XII

Special Audit Group

SAG Section

Chapter XIII Internal Audit

Internal Audit Section

Chapter XIV Co-ordination Section

COR Section

Chapter XV

Reports Section

Reports Section

Chapter XVI Inspections

IHQ Section

Chapter XVII Electronic Data Processing Audit (EDPA) Section

EDP Section

Chapter XVIII Costing Cell

Costing Cell Section

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Annexure XII (Para 331) Scale of Furniture The following are the scales of furniture laid down for the offices of the Indian Audit and Accounts Department. For Principal Director of Audit: Cotton Durry Woolen Carpet Table Officer’s Side Table Armed Chairs Chair Armless Easy Chair Door Mat Side Rack Hat Stand Book Case(Revolving or glazed) Foot Rest

.. .. .. .. .. .. .. .. .. .. .. ..

1 1 1 1 6 1 1 1 1 1 1 1

.. .. .. .. .. .. .. .. .. .. ..

1 1 1 1 3 1 1 1 1 1 1

.. .. .. .. .. .. ..

1 1 1 2 1 1 1

For Deputy Director/Director: Woolen Carpet Table Officer’s Side Table Side Rack Armed Chairs Cotton Durry Door Mat Hat Stand Chair Armless Book Case(Revolving or glazed) Foot Rest

(12’x9’)

For Sr.Audit Officer/Audit Officer: Officer’s Table Side Table Side Rack Armed Chairs Chair Armless Cotton Durry Book Case

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Asstt. Audit Officer/Section Officer (Audit): Table (Supdt.) Side Rack Armed Chairs Armless Chair

.. .. .. ..

1 2 2 1

For Auditors / Stenographers / LDCs / Daftries: Clerk’s Table Clerk’s Chair Side Rack

.. .. ..

1 1 1 (for Auditor & Stenographer only)

.. ..

1 1

For Typists: Table Typist Chair Clerk For Group ‘D’ Staff: One Stool each (Authority: Comptroller and Auditor General of India’s Lr.No. 80NGE.I/26 dated 15.01.1965) *****

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Ch.IV - Page 1 of 46

CHAPTER - IV ADMINISTRATION 401. This section deals with the personnel and administrative matters relating to the office which are generally indicated below: (a) Administration: (i)

Appointment, transfers, promotions, deputations, grant of leave and grant of advances etc. of staff upto Audit Officers/Sr.Audit Officers’ grade.

(ii)

Recruitment of Group ‘D’ and casual labour.

(iii)

Office accommodation.

(iv)

Section Officers’ Grade Examination and other departmental examinations.

(v)

Maintenance of Service Registers and Leave accounts.

(vi)

Preparation of Pension Papers.

(vii)

Maintenance of casual leave account of (a) staff of Administration Section and (b) all Group ‘D’ staff at Secunderabad.

(viii)

Issue of Privilege Passes/PTOs, Duty cheque passes and maintenance of accounts thereof of all the Group ‘A’ & ‘B’ officers, Group ‘C’ and ‘D’ officials of Administration, Co-ordination, EDP, Reports, SAG and Inspection Headquarters Sections. Issue of complimentary passes, school passes, card passes, transfer passes, sports account passes etc. of all the officers and staff at Headquarters.

(ix)

Procurement and upkeep of furniture and office machinery.

(x)

Indenting and supply of Stationery and liveries.

(xi)

Receipt and Despatch.

(xii)

General Maintenance and Upkeep of Office Library.

(b) Budget and Control over Expenditure: (i)

Preparation of temporary staff proposals, and Budget proposals.

(ii)

Registers of expenditure and their reconciliation.

(iii)

Submission of Control Statements and other returns to Comptroller and Auditor General of India.

(iv)

Appropriation Accounts relating to the accounts of this office.

(c) Welfare and Caretaking: Welfare Assistant: To assist the Welfare Officer, a post of Welfare Assistant is operated in the Administration Section. He is entrusted with the following duties. (a) Staff matters: (i)

Assisting the Welfare Officer in looking into the difficulties or grievances of members of the staff and arranging for personal hearing, wherever possible.

78

Ch.IV - Page 2 of 46

(ii)

Providing assistance to members of the staff who become suddenly ill or those who are chronically ill. To assist staff members in securing accommodation facilities in Hospital and to help, in case of need, families of persons on protracted tour.

(iii)

Helping, where essential, the members of the staff in securing admission of their children in schools, colleges and other educational institutions.

(iv)

Assisting staff members in connection with staff welfare, such as Benevolent Fund etc. as may be entrusted from time to time. Liaison with staff Benevolent Fund Committee in providing financial help.

(v)

Initiating action for providing immediate monetary relief to the members of the bereaved family in case of death while in service.

(vi)

Ensuring that payment of settlement dues of retiring officials etc. is effected promptly by the day following the date of retirement by contacting the Accounts Officers concerned and the pension payment orders are also issued expeditiously by the Accounts Officers.

(vii)

Attending to the complaints regarding the delays in the payment of dues to the members of staff and ensure that such payments are effected promptly.

(viii)

Assistance to staff members in arranging for procurement of life-saving drugs.

(ix)

Helping the staff to obtain blood from blood banks in urgent need, promoting donation of blood.

(x)

To attend to representation of Group ‘D’ personnel.

(b) House Keeping: (i)

Cleanliness of office premises and bath-rooms including adequate water supply as also drinking water supply.

(ii)

Neatness of work place and proper maintenance of furniture.

(iii)

Removal/weeding and destruction of unwanted records and elimination of congestion in sections.

(iv)

Adequacy of light and ventilation in the offices.

(v)

Arranging parking lots for cycle and scooters and ensuring their safety and protection against sun and rain, to the extent possible.

(vi)

To assist Administration in local purchases by obtaining quotations/tenders and scrutinizing the same.

(vii)

Supervision and maintenance of the garden.

(c) Care-Taking: i.

To ensure proper opening and closing of the office buildings.

79

Ch.IV - Page 3 of 46

ii.

Marking attendance of the Group ‘D’ staff, their deployment, control and making arrangements during the periods of their leave.

iii.

To attend to the representations of Group ‘D’ personnel regarding the supply of uniforms and other aspects.

iv.

Supervision of the work of maintenance of gardens by the Malis.

v.

Maintenance of the duty rosters of Chowkidars and making arrangements for the work when any of them is suddenly absent.

vi.

Tight control over the day-to-day security arrangements, especially checking the functioning of the Chowkidars outside office hours.

vii.

To look after the cleanliness of the office as a whole.

viii.

Inspection of sections from time to time and suggesting ways for improving the facilities in the sections in regard to furniture, adequacy of space, provision of lighting etc.

ix.

To be in constant touch with the Signal and Telecommunications Department regarding failure of telephones and the Electrical Department for failure of electricity and replacement of defective fans and bulbs.

x.

Maintenance and verification of dead stock items.

xi.

Any other duty in connection with the upkeep of the office as entrusted to him from time to time.

(d) Cultural and Recreational Activities: (i)

To act as liaison in conducting Inter-Audit/Central Government Employees Welfare Coordination Committee Tournaments in various games arranged by the IA&AD/CGEWCC.

(ii)

To encourage players to participate in games.

(iii)

Liaison with the Recreation Club.

(iv)

To help in issuing notices regarding grant of permission to staff for leaving office early to attend sports events and for closing of office as a mark of respect to deceased employees, arranging for condolence meetings and despatch of condolence resolutions to the families of the deceased.

(v)

Any other work that may be entrusted by the Principal Director of Audit.

402. Communal Roster: A communal roster indicating the number of reservations to be made for Scheduled Caste and Scheduled Tribe candidates in respect of recruitment and confirmations should be maintained in accordance with the orders issued by the Government of India from time to time. Reference should be made to the “Brochure on Reservations for Scheduled Castes and Scheduled Tribes in services” issued by the Ministry of Home Affairs.

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After the introduction of Post based reservation rosters w.e.f. 2.7.1997, the size of the roster shall be kept equal to the sanctioned strength in a cadre. Dereservation is necessary only when a point in the roster proposed to be filled up is earmarked for reserved category for which no eligible candidate from that community is available for promotion. Even if, there is shortfall in the representation of reserved category candidates in a particular cadre, in case the point which is proposed to be filled up falls on an unreserved point, the question of dereservation would not arise. (C&AG’s letters No.1082-NGE(App)/3/97 dt10.9.97, 1285-NGE(App)/3-98 dt.4.12.98 and 276-NGE(App)/3-2000 dt.25.2.2000 – Page Nos.16,86 and 95 of AuA/VI/10/PBR/Vol.I). 403. Training of Auditors: New recruits will be posted initially to regular sections so that they may gain rudimentary knowledge about the office work. They will be given training for a period of three months. The training classes will be conducted in the forenoons and the trainees will be sent to their respective sections in the afternoons for practical training. The trainees will maintain diaries to record briefly what they learnt during their training period. These diaries will be submitted daily to the Asstt. Audit Officer(Training) who will submit them to the Deputy Director/Director every Monday. The lectures will cover all items of work done in the various sections of the office. As part of the practical training the trainees will be taken to Railway Stations, Engineering Offices, Workshops, Stores Depots and different sections of the Accounts Office to explain to them in detail how the initial records are maintained. Tests will be conducted periodically on each subject and results thereof put up to the Principal Director of Audit. The Asstt. Audit Officer(Training) should indicate in his weekly diary the progress of training with reference to: I. II. III. IV.

Syllabus covered, Tests held, Items covered in practical training, and General remarks on the receptivity of the trainees.

Cases of trainees showing want of interest or progress in work should be put up confidentially to Deputy Director/Director/ Principal Director of Audit. Training should be imparted to new recruits and promotees before they complete one year’s service in Auditor’s cadre and before they become eligible to appear in the Departmental Examination for Auditors. (Comptroller and Auditor General’s letter No.1933-NGE.II/100-67 dated 24.9.1968). The Clerk/Typists promoted to Auditors’ cadre should also be given suitable training for a period of six weeks in not more than two batches in a year.

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(Comptroller and Auditor General’s letter No.54-NGE.II/100-67 dated 8.1.1968) 404. Departmental Examination for Auditors: All direct recruits as well as Clerks/Typists promoted as Auditors should pass the Departmental Examination which is a pre-requisite for confirmation and promotion as Senior Auditor. The Examination will be held twice a YEAR IN February and August each year. Proposals should be put up to Principal Director of Audit in January and July for nominating the Officers for setting all the 3 question papers. The dates of the examination will be determined by the Principal Director of Audit. The Syllabus for the examination is given below: Paper Paper I - Railway Audit Paper II - General Rules and Procedure Paper III - Revenue Audit (Railways)

Duration 2½ Hours 2½ Hours 3 Hours

Maximum Marks 100 100 100

Note: Candidates will be declared to have passed if they obtain 40% of marks in each of the papers. A candidate who fails to pass the examination but obtains in any paper atleast 50% of marks will be exempted from appearing again in that subject. (Comptroller and Auditor General’s letter No.301-Exam./22-84 dated 3.4.1984 and 3-Exam/160-86 dated 2.1.1987) The honoraria admissible to the examiners are as under: 1. For setting the 3 hours paper question papers Less than 3 hours paper 2. For Valuation 3 hours paper 2 ½ hours paper 2 hours or less

Rs.160/Rs.130/Rs.3.30 per paper Rs.2.80 per paper Rs.2.20 per paper

If the amount of honorarium computed on the above basis is less than Rs.10/-, an amount of Rs.10/- will be granted as Honorarium. (Authority: 263-NI/48-84 dated 13.2.89 - C.S. No.123 dt.13.12.89 to Para 313.A to MSO(A) Vol.I Second Edition) Auditors who have rendered atleast one year’s service as on 1st February and 1 August are eligible to appear in the Examination. Auditors transferred from other offices who have already passed the examination in their offices need not sit for the examination again. The Principal Director of Audit may at his discretion condone deficiencies in the prescribed service upto a limit not exceeding 60 days as on 1st day of the month in which the examination is held. st

(CAG’s Lr.No.527-Exams/20-84/IV dt.20.8.91) The Auditors and promotee Clerk/Typists are allowed six chances in six consecutive examinations to pass the examination. Absence in any examination for whatever reasons will also be taken as chance availed. Failure to pass the Departmental Examination within the stipulated time/number of chances will entail discharge from service in the case of

82

Ch.IV - Page 6 of 46

direct recruits and reversion to Clerk/Typists in the case of promotees. The reverted Clerk/Typist will have three more chances to clear this examination within two years of the reversion. Note: Two additional chances for appearing at the Departmental Examination can be considered on merit alone for those who have exhausted all the six chances but could not avail of one or two chances due to genuine reasons like national calamity, compelling family circumstances, illness of self and family and any other such circumstances considered by the Head of the Department to be genuine. (Para 9.4 to 9.4.2 of Manual of Standing Orders(Admn) Vol.I) The promotee Clerk/Typist who was reverted to the post of Clerk/Typist for having not passed the Departmental Examination within the stipulated number of chances will be considered for re-promotion, with others, only after completion of 5 (five) years from the date of reversion. While issuing the orders of promotion, this condition shall invariably be incorporated in the promotion order itself. (C&AG’s letter No.654-NGE/App/53-90 dated 17.6.98 Page No.16 of AuA/Confdl/O/15 Vol.I) (Para 57 of Railway Audit Manual and Paras 287 and 288 - Manual of Standing Orders(Admn) Vol.I and M.I.R. 4.3.1., 4.3.2. and 4.3.3.) 405. Section Officers’ Grade Examination: Section Officers’ Grade Examination is held once a year, on the dates fixed by the Comptroller and Auditor General. Persons who have put in a minimum of three years service in one or more of the following capacities will be eligible to sit for the examination. i)

As Clerk/Typist, Auditor, in an Audit Office.

ii)

As a Stenographer in an Audit Office.

The Head of Offices may recommend to the Comptroller and Auditor General for consideration suitable and deserving cases for condonation of deficiency, not exceeding 2 months in each case in the minimum qualifying service of three years required for eligibility to appear in the examination. The maximum number of chances for Part I of the Section Officer’s Grade Examination will ordinarily be 6. Indefinite number of chances in Part I shall, however, be allowed to those candidates who secure 30% marks in aggregate in any one of the last two chances availed of by them. There will be no limit to the number of chances for Part II of the Examination. 406. Selection and training of candidates for Section Officer’s Grade Examination: After the results of the Section Officer’s Grade Examination are announced, names of intending candidates for the next examination should be obtained in the prescribed proforma.

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A Preliminary test will be conducted for those who are appearing for the first time to select the candidates who will be allowed to sit for the examination. The test will consist of two papers each of three hours duration - one on “General English/General Hindi and Constitution of India” and the other on “Omnibus Paper (without books)” covering the subjects on Establishment and Expenditure, prescribed for Part I of Section Officer’s Grade Examination. Candidates qualified in the Preliminary Test but not sitting for the examination should again have to pass the Preliminary test if he is to appear for the examination in the subsequent year. Lectures will be given to the Section Officer’s Grade Examination candidates for Part I and II Examinations by Asstt. Audit Officers and Audit Officers/Sr.Audit Officers nominated by the Principal Director of Audit. The maximum number of lectures to be given is 10 in the case of ‘Précis and Draft’ and 12 in the case of other subjects. The lectures should be of not less than 75 minutes duration and should be given within the office hours. Honorarium at the rates prescribed by the Comptroller and Auditor General will be paid to the lecturers. 407. Statement of candidates for Section Officer’s Grade Examination: A list of candidates eligible for Section Officer’s Grade Examination Part I and II, approved by the Principal Director of Audit, will be sent in the form prescribed in Para 9.2.3 of the Manual of Standing Orders(Admn.) Vol.I so as to reach Comptroller and Auditor General’s Office by 15th August each year. An indication whether a particular candidate belongs to Scheduled Caste or Scheduled Tribe should be given. The following information should also be indicated invariably in the list of candidates. In the case of a candidate who has secured the concession of another chance in Part I of the Section Officer’s Grade Examination, by virtue of his having secured 30% of marks in the aggregate in any one of the last two chances, actually availed of by him, the month and year of that examination, the index number then allotted and the marks obtained should be indicated against his name in the ‘Remarks’ column of the statement. The list compiled by the Administration Section should be checked in detail by a Section Officer/Asstt. Audit Officer and an Audit Officer/Sr.Audit Officer other than those who are responsible for the compilation. As soon as an advice is received from the Comptroller and Auditor General about the programme of the examination and the index numbers allotted to the candidates, the candidates should be notified and a copy of the instructions also supplied to them. Candidates who secure exemption marks in two subjects in Part I will be allowed to take the third subject along with Part II Examination. Candidates who have passed Group I of the final examination of I.C.W.A., will be exempted from Accountancy paper in Part II. Note: For the subject ‘Open-line Revenue’, I.R.C.A. Coaching and Goods Tariff and General Classification of goods in force on 1st April preceding the examination will be the test books. (Comptroller and Auditor General’s letter No.389-Exam/151-67 dated 25.7.1968).

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408. Withdrawal from the examination: Candidates who wish to withdraw from the examination, whether Part I or Part II, should apply for permission to do so before the lists of eligible candidates are sent to Comptroller and Auditor General i.e. 15th August. Applications received afterwards will not be considered unless there are very compelling reasons in support of the request. Permission to withdraw one’s name should be applied for in any case before the commencement of the examination. 409. Conduct of the Examination: The examination will be conducted by the I.A.&.A.S. Officers nominated by Comptroller and Auditor General. A list showing the particulars of candidates who have been allowed by the Principal Director of Audit to withdraw from the examination should be forwarded to Comptroller and Auditor General after the examination is over. 410. Grant of leave to Section Officer’s Grade Examination candidates for preparation: Leave may be granted to Section Officer’s Grade Examination candidates for preparation subject to administrative convenience and with due regard to the principles enunciated in S.R.232. 411. Pass and Travelling Allowance to Section Officer’s Grade Examination Candidates: The Section Officer’s Grade Examination is treated as an obligatory examination for the purpose of Travelling Allowance. Journeys performed in connection with the examination are treated as journeys on tour. No daily allowance will, however, be paid for the days of halt at the place of examination. Travelling Allowance for the journeys may be given only for the first two attempts of a particular examination. (Comptroller and Auditor General’s letter No.Admn/15-44/56/10638 dated 18.11.1960) 412. Revenue Audit Examination for Section Officers/Asstt. Audit Officers: A Departmental examination called “Revenue Audit Examination for Section Officers” of the Railway Audit Department has been introduced from the year 1974. The examination will consist of 2 papers each of 3 hours duration and carrying 150 marks each. (Paper I deals with Income Tax and Paper II deals with Revenue Receipts of the Department). The minimum marks required for a pass in the examination will be 40% in each paper but candidates who obtain 60% or more marks in any paper will be exempted from appearing in that paper in the subsequent examination. The examination will be held once a year on the dates to be determined by the Comptroller and Auditor General. (Comptroller and Auditor General’s letter Nos.902-Exam/102-72 dated 31.10.1973, 266-Exam/102-72 dated 3.6.1974 and 170-Exam/8-1985 dated 18.3.1987) 413. Conditions of eligibility to sit for the Exam: The completion of the prescribed course of training will be an essential condition for eligibility for appearing in the examination. Section Officer’s Grade Examination passed Auditors who have not been promoted and those officiating as Section Officers in purely temporary leave vacancies will not be allowed to sit for this examination. (Comptroller and Auditor General’s letter Nos.266-Exam/102-72 dated 3.6.1974 and 372-Exam/102-72 (III) dated 10.7.1974)

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414. Maximum Number of Chances: The maximum number of chances allowed for passing this examination will be 6 (six) without any age restriction. Permission accorded to appear in any particular examination shall count as one chance irrespective of the fact whether the candidate actually sits for the examination or not, unless he is specifically allowed by the Head of Office to withdraw his candidature. Such withdrawal shall not be allowed unless the circumstances of the case fully justify the concession. Permission to withdraw one’s candidature should be applied for as early as possible and in any case before the commencement of the examination. (Comptroller and Auditor General’s letter No.1115-Exam/183-80 dated 14.10.1980 and Para 9.3.3. of Manual of Standing Orders(Admn.) Vol.I) 415. Incentive to candidates passing the Examination: Such of those Section Officers/Asstt. Audit Officers who pass the Revenue Audit Examination will be allowed one advance increment in the Section Officer/Asstt. Audit Officer’s scale (as the case may be) in which the pay is drawn at the time of writing the examination taking effect from the day following the last day of the examination. The next increment will accrue on the normal date of increment of each official. In the case of Asstt. Audit Officers passing this examination, the advance increment has to be sanctioned by the Comptroller and Auditor General. (C&AG’s letter No.920-Exam/102.72 dated 31.10.73 and No.4093-GE.II/21786 Vol.II dated 4.12.87) All the departmental officials, on passing intermediate and final examination of I.C.W.A. are eligible for lump sum incentive of Rs.4,000/- and Rs.8,000/- respectively. (Department of Personnel and Training O.M. No.1/2/89-Estt.(Pay-I) dt.9.4.99 received under CAG’s No.184-Audit(Rules)/86-90/IV-99(41) dt.13.5.99) 416. Travelling Allowance to the candidates for training: The candidates who have to proceed for the training to a center at a place other than their Headquarters will be entitled to Travelling Allowance as on tour and the period of training will be treated as duty. (Comptroller and Auditor General’s letter No.484-Rev-Rec(iv)/29-71 dated 27.6.1974) 417. Training of candidates: The Section Officers/Asstt. Audit Officers who desire to appear in the examination would be given intensified training. The training will be in the form of concentrated full time course spread over a period of 10 working days consisting of 25 lectures. Training will be arranged by the Accountant General (Audit-I), Andhra Pradesh, Hyderabad. 418. Syllabus for examination: Syllabus for examination is given in Manual of Standing Orders (Admn.) Vol.I. The candidates will have to equip themselves with the copies of codes etc. prescribed in the syllabus both for training as well as for reference in the examination. 419. Statement of candidates permitted to appear in the Examination: Particulars of candidates permitted to appear in the examination should be intimated to Comptroller and Auditor General in Form No.9 given in Manual of Standing Orders(Admn.) Vol.I. (Para 9.3.2. of Manual of Standing Orders(Admn.) Vol.I).

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Immediately after the close of the examination, a certificate to the effect that all the candidates who were allowed to appear in the examination had completed the prescribed course of training should be furnished to Comptroller and Auditor General. 420. Departmental Examination for promotion as Stenographer: A Limited Departmental Competitive Examination for Clerk/Typists for promotion as Stenographers will be held once a year in the month of August. Any permanent or temporary regularly appointed Clerk/Typist who has completed 2 years continuous service as Clerk/Typist in the I.A.&.A.D. and who has passed the Matriculation examination will be eligible to appear in the examination. The crucial date to determine the eligibility will be the first day of the month in which the examination is held. There is no limit on the number of chances which may be availed of by a candidate. The examination consist of 2 parts viz. Part ‘A’ - written test and Part ‘B’ - Shorthand test. The subject of the examination, time allowed, the maximum marks for each subject and the standard and the syllabus will be as follows: Part ‘A’ - Written Test: Subject Time allowed Maximum marks Paper I General English 1 hour 75 Paper II Essay 1 hour 50 Paper III General Knowledge 1 hour 75 (Minimum qualifying marks will be 40% in each of the papers). Part ‘B’ : Shorthand test in English/Hindi 10 Minutes (80 words per minute) passage (Minimum qualifying marks will be 55%).

200 marks

(Comptroller and Auditor General’s letter Nos.186-190/N.2/40.84 dated 6.3.1984, 1259-Exam/21-84 dated September 1984 and Para 9.5 to 9.5.4 of Manual of Standing Orders(Admn.) Vol.I). 421. Limited Departmental Competitive Examination for Matriculate Group ‘D’ staff for promotion as Clerk/Typists: (i) Group ‘D’ staff who are Matriculates and who have put in 3 years continuous service on the first day of the month in which the examination is held are eligible to appear for this examination. The examination will be held once in a year in September and will consist of 3 written papers on: 1. 2. 3.

Subject English/Hindi Arithmetic and Tabulation General Knowledge and Office Procedure

Duration 2 hours 2 hours 1 hour

Maximum marks 100 100 100

(ii) The pass marks required is 40% in each of the 3 papers. The number of chances shall be limitless. The candidates who pass the written papers of the examination become eligible for promotion as Clerks/Typists. Candidates securing 45% marks in any paper(s) would be exempted from appearing in that paper(s) in subsequent examinations.

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(Comptroller and Auditor General’s letters No.341-Exam/161-83 dated 30.4.1984, No.691-Exam/161-83 dated 5.7.1984, 833-Exam/161-83 dated 23.7.1986, No.242Exam/161-83 Vol.II dated 23.4.1987 and Para No.9.6 of Manual of Standing Orders (Admn.) Vol.I) (iii) Failure to qualify in the type test by Clerk/Typist - adverse effects: Promotee Group ‘D’ should not be reverted for failure to qualify in the requisite type test. However, such of the candidates who do not qualify in the prescribed type test would not earn any increments nor become eligible for confirmation and promotion. They are also not eligible to appear at any departmental examination on passing of which promotion is given, i.e. Section Officers’ Grade Examination etc. They are however, eligible for exemption from passing the type test on their reaching the age of 45 years. On passing the type test, their increments held over will be released but arrears prior to passing are not payable. If any period of probation is prescribed in the post of Clerk/Typist, such period of probation cannot be deemed to have been successfully concluded, till the type test is passed. In cases where exemption from type test is granted either on reaching the age of 45 years or on medical certificates, the above mentioned disabilities due to non-passing of type test will cease to be operative on such exemptions. (Comptroller and Auditor General’s letter No.301-N.2/46.87 dated 1.4.1987) 422. Confirmation: A revised procedure for confirmation, retention of lien etc. has been introduced with effect from 1.4.88 and accordingly confirmation will be made only once in the service of the official, in the entry grade without linking the confirmation with availability of permanent vacancy in that grade after successful completion of probation of 2 years and passing the departmental examination in case of Auditors. Confirmation in the grade to which initially recruited will be placed before DPC and a specific order of confirmation will be issued when the case is cleared from all angles. As no officer otherwise eligible will have to wait for confirmation pending availability of permanent vacancy, the need for following the procedure for declaring a person quasi-permanent ceases to exist. The benefits of having a lien in a grade will be enjoyed by all officers who are confirmed in the grade of entry or who have been promoted to a higher post declared as having completed the probation where prescribed or those who have been promoted on regular basis to a higher post where no probation is prescribed under Rules, as the case may be. The present distinction between permanent and temporary employees for grant of pension and pensionary benefits will cease to exist.

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The need for reservation at the time of confirmation in posts and services filled by direct recruitment will cease to exist, as everyone who is eligible for confirmation will be confirmed. (Authority: C&AG’s No.2536-NGE.III/43-88 dt.20.7.88 NGE Group Circular No.N/56/1988) 423. Applications for employment elsewhere: Applications for posts under Central or State Government and Statutory Corporations should be sent to the Administration Section for transmission to the prospective employer. No application should be sent direct. Applications other than those in response to advertisements in newspapers or circulars from Comptroller and Auditor General’s office will not be forwarded. Applications from purely temporary employees may be forwarded unless there are compelling grounds of public interest for withholding them. In the case of permanent employees, however, only four opportunities in a year may be given to apply in response to advertisements, unless in the interest of public service, they have to be withheld. A written undertaking accepting the conditions stipulated in the Government of India, Ministry of Home Affairs O.M.No.70/62/62-Ests.(A) dated 22.1.1966 should be obtained before forwarding applications from permanent Government servants for posts in Public Sector Undertakings/Autonomous Semi-Government Organisations. The foreign employer should also be informed of this. Quasi-permanent employees appointed to such posts should be treated as on foreign service for a period of two years and given the same treatment as permanent employees. Before forwarding the applications of temporary employees for posts in public sector undertakings/organisations, a written undertaking to the effect that in the event of selection to the posts applied for they will resign from Government service, should be obtained from them. {(1) Ministry of Home Affairs, O.M. No.70/62/62-Ests.(A) of 22.1.66; (2) Department of Personnel and Training O.M. No.28016/5/85-Estt(C) dt.31.1.86, and No.4(12)85-P&PW dated 31.3.87 as amended from time to time} 424. Compulsory retirement: Extension of service and Refused Leave: The provisions of FR.56 regarding the age of superannuation are applicable to staff of this office. In terms of FR(56)(J) appropriate authority, if it is of the opinion that it is in the public interest to do so, have the absolute right to retire any government servant by giving him notice of not less than three months in writing or three months’ pay and allowances in lieu of such notice. The power to relax three months notice period vests in the President. (Comptroller and Auditor General’s letter No.1603-NGE.I/313-65 dated 29.7.1967) (i)

If he is in Group ‘A’ or Group ‘B’ service or post in a substantive or temporary capacity and had entered Government service before attaining the age of thirty five years, after he has attained the age of fifty years.

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(ii)

In any other case, after he has attained the age of fifty five years.

This proviso will not apply to Group ‘D’ Government servants, who entered Government Service on or before 23rd July, 1966. For the purpose of application of Fundamental Rule 56(J) it is necessary to determine if retention of Government servants beyond the age of 55 years will be in public interest. For this purpose, the following procedure has been laid down. (Ministry of Home Affairs O.M. No.33/15/66-Estts (A) dated 10.11.1966) 1. Case of a government servant should be reviewed six months before he attains the age of 55 years and decision taken thereon by the appropriate authority. 2. Once a decision is taken by the appropriate authority to retain a government servant beyond the age of fifty five years in public interest, the employees concerned will continue in service automatically till he attains the age of compulsory retirement. If, however the appropriate authority subsequently considers that further retention of the government servant will not be in public interest, that authority may take necessary action to serve three months notice in terms of clause (J) of Fundamental Rule 56. No proposal for extension of service/re-employment beyond the age of superannuation will, ordinarily, be considered. Detailed instructions regarding grant of extension of service (reemployment) contained in Ministry of Home Affairs O.M.No.26/11/68 Ests.(B) dated 17th June, 1969 should be borne in mind in recommending extension of service to staff. All proposals for extension of service should be submitted to the Comptroller and Auditor General. (CAG’s letter No.75-NGEI/150-67(I) dated 10.1.1968) 425. Pension: The payment of superannuation pension should in all cases commence on the first of the month in which they are due. The Head of Office responsible for preparing the pension papers will initiate the pension case 2 years before the date of retirement of the Government servant. Deficiencies, imperfections and omissions in the Service Book should be removed and the service book completed in good time, at any rate, not later than 8 months in advance of the date of retirement of the Government servant. The actual work of preparation of pension papers should be taken up 8 months before the date of retirement. It shall be the responsibility of the officer maintaining the Service Registers to make annual verification and also to complete and certify the service book in respect of previous service on the 25th year of service or 5 years before the retirement and communicate to the Government servant the period of qualifying service so determined in consultation with the Principal Director of Audit, Eastern Railway. (Ministry of Finance O.M.No.F.11(3)-EV(A)/76 dated 28.2.1976) The progress of pension cases should be watched by means of the following monthly, quarterly and half-yearly statements. 1. Statement No1: This is a monthly statement and should cover cases of all government servants due to retire within the succeeding 8 months. It will indicate the progress of the

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cases with reference to various stages and this should be submitted to Principal Director of Audit by 5th of each month. 2. Statement No.2: This statement covers the cases of those who became due for retirement in the preceding month and this should be submitted to Principal Director of Audit by 3rd of each month. 3. Statement No.3: This is a quarterly statement and is meant to cover provisional pension and/or provisional Death-cum-retirement-gratuity cases which are to be made final after the expiry of the period of 6 months. This should be submitted to Principal Director of Audit by 10th of April, July, October and January for the quarters ending 31st March, 30th June, 30th September and 31st December respectively. 4. Statement No.4: This is a quarterly statement and should indicate the details of the presumptions made in favour of the retired Government servants because of incomplete/improper maintenance of Service Registers. This should be submitted to Principal Director of Audit by 15th of April, July, October and January for the quarters ending 31st March, 30th June, 30th September and 31st December respectively. In addition to the above, a six monthly report (Statement No.5) showing the particulars of Government servants in whose cases pension was not determined within 6 months of the retirement should be submitted to Principal Director of Audit by 15th July and January for the half-year ending 30th June and 31st December. (CAG’s letter No.414-NGE.I/107-1976 dated 24.2.77) The Head of Office shall undertake the work of preparation of pension papers in Form No.7, 2 years before the date of retirement and obtain particulars in Form No.5 from the Government servant 8 months before the retirement. The Head of Office shall complete Part I of Form No.7 not later than 6 months prior to the date of retirement of the Government servant. Thereafter, the following documents shall be sent to Principal Director of Audit, Eastern Railway with the pension case of every non-gazetted and Group ‘B’ officer for verification. 1. 2. 3. 4. 5. 6. 7.

Details of service and the order of the pension sanctioning authority. Medical certificate for invalidation (if the claim is for invalid pension) Service Book. Statement of average emoluments, reckoning for pension. Form No.5 Form No.7 Statement showing calculation of pension, DCRG and Family pension.

In respect of Group ‘A’ officers, the pension papers should be processed as indicated above and sent to Pay and Accounts Officer, Office of the Accountant General, Andhra Pradesh, Hyderabad, for verification and arranging payment. In dealing with pension cases, the procedure laid down in Chapter.VIII of CCS (Pension) Rules, 1972 may be kept in view.

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426. Family Pension: Family pension is also verified and sanctioned along with the superannuation pension and Death-cum-retirement gratuity and communicated to the Accounts Officer. 427. Nomination: Every employee shall execute nominations for Family Pension and Deathcum-retirement gratuity. The nominations for Death-cum-retirement gratuity should be executed on completion of five years of qualifying service. These nominations are scrutinised and put up to the Deputy Director (Head of the Office) for counter-signature. Thereafter, necessary entries regarding the date of nomination for family pension/death-cumretirement gratuity are made in the Service Register of the individual and lodged in the confidential file kept in the custody of the Audit Officer/Sr. Audit Officer(Administration). A remark that the nomination is kept in the confidential file with the Audit Officer/Sr. Audit Officer is also to be made in the Service Register. Acknowledgement shall also be given to the individual concerned. In the case of employees who have elected to be governed by the Family Pension Scheme, 1964, it is necessary to obtain particulars of composition of the family and separate nominations for Family Pension are not necessary. These particulars must be kept in the Service Register of the employee. 428. Settlement bills: When an employee retires from Government service, resigns or is relieved on transfer to some other department or is retrenched or dismissed from service, the pay and allowances due to him for the part of the wage period ending with the date on which such event occurs should be drawn in a separate pay bill, marked prominently “settlement pay-bill”. Before drawing such a bill, it should be ensured that there are no dues outstanding against the employee. 429. Budget and Revised Estimates: The instructions contained in Paras 72 to 78 – Railway Audit Manual and Chapter IX of Comptroller and Auditor General’s Manual of Standing Orders may be seen. The Budget Estimates and Revised Estimates in respect of Group ‘A’, ‘B’, ‘C’ and ‘D’ posts and office expenses shall be prepared in the following forms:1. Group ‘B’/Non-Gazetted Establishment

-

Forms ‘A’ to ‘D’

2. Group ‘A’ Officers

-

Forms ‘E’ to ‘H’

While formulating the monetary estimates, the following instructions may be kept in view, besides those issued from time to time. The provision for men-in-position should be accurately estimated. Provision for those posts out of the vacant ones which can be filled-in during the remaining part of the year should only be proposed. Provision for additional posts should not be made in the estimates. provision for additional posts under the head-“Travel Expenses” should be made.

No

The requirement under the head “Salaries” should be computed with reference to actuals for the first 6 months and under other heads on the basis of actuals for the 5 months.

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Provision for the purchase of items like Accounting Machines, Staff Car, Water Coolers, Grants-in-aid etc. should be separately indicated. Provision for Cash Awards to employees under the Hindi Teaching Scheme may be provided under the sub-head “Other Charges” and shown distinctly. Provision for special construction works and ancillary requirements should be made under the sub-head “minor works”. Explanations for variations should invariably be furnished in the estimates. The estimate of funds required under the head “salaries” in the Budget will be framed on the basis of trends over the preceding 3 years taking into account other relevant factors like changes in rates of pay, allowances, number of posts and their filling and economy instructions issued from time to time. With effect from 1987-88 provision for “Festival Advances” should be made under salaries. The provision will be on a net basis i.e. net of recoveries under the head “salaries”. (CAG’s letter No.2013-BRS/42-2000(Email) dt.10.9.2000 Circular No.6BRS/2000) 430. Estimates for Deposits and Loans, Pensionary charges: See Paras 76 and 77 of Railway Audit Manual. 431. Register of Expenditure: All Pay, Travelling Allowance and other bills relating to claims of staff for each month classified under the detailed heads of account should be posted in this register. The bills should be serially numbered and entered in the register before the fair copy of the bills are put up for signature of the Branch Officer. (General Financial Rules-66) 433. Register of Contingent Expenditure: This register is intended to watch the adjustments of debits pertaining to contingent expenditure such as telephone charges, electricity charges, cost of stationery forms, books, periodicals, liveries and charges for repair of furniture and office equipment. Before putting up these bills to the Branch Officer for signature, the expenditure relating to this should be posted in the register. Total expenditure booked on contingencies for a month should be posted in the expenditure register under the detailed head “02-614-18-PDA/SCR/SC-A4(4)-Office expenses” monthly. Every month, the particulars of expenditure booked in the accounts of a month should be ascertained from the Financial Adviser and Chief Accounts Officer and the same reconciled with the expenditure booked in the Register of Expenditure. 434. Control Statements: The Comptroller and Auditor General controls the expenditure under the major head “216-Audit” incurred in the several Audit and Accounts Offices. Principal Directors of Audit are responsible to keep the expenditure within the limits of appropriation. For the purpose of exercising proper control over expenditure, a monthly review of expenditure as specified in Paras 367 to 369 of the Manual of Standing Orders should be prepared commencing from the month of September, and sent to the Comptroller and Auditor General. The monthly review of expenditure in respect of Group ‘A’ officers and Group ‘B’/non-gazetted establishment should be prepared separately. The monthly

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reviews of expenditure are required to reach the Comptroller and Auditor General’s office by the middle of the month succeeding that to which they relate. Only the amount of bills which have been actually passed for payment in a particular month should be shown in column 3 of the monthly review of expenditure. As the accounts of a particular month are not generally closed before the due date for the submission of the control statement, statement of expenditure booked as also the expenditure proposed for inclusion by Accounts Office in the accounts of that month has to be ascertained. This expenditure, and not the expenditure as noted in the Expenditure Register, should be included in Column 3 of the control statement. The purpose is to review the expenditure upto-date and adopt special measures to limit the expenditure on items which tend to exceed the estimate, or approach Comptroller and Auditor General for a supplementary provision. The control statement upto January due by 15th February, should be specially scrutinised to surrender any unwanted provision. (Paras 11.12 to 11.15 of Manual of Standing Orders (Admn.) Vol.I 3rd Edition). 435. Register of Liabilities: A Liability Register should be maintained with a view to keeping a systematic watch on the liabilities to be met. The register should be maintained in the form given below: Sl. Particulars Approximate Date of receipt Reference to voucher No. of indent cost and reference to debit or bill for supplies issue vouchers --------------------------No. Date Amount 1. 2. 3. 4. 5. 6. 7.

When accepted 8.

Reference to the entry in Contingency Register 9.

Remarks 10.

The register should be reviewed every month and suitable action taken to see that supplies are made without undue delay and that bills are received and accepted in respect of supplies made. The register should be put up to the Audit Officer/Sr.Audit Officer(Admn.) every month. 436. Appropriation Accounts: After the close of the accounts for the year, the Appropriation Accounts of the expenditure pertaining to this office booked to the Civil Head ‘216-Audit’ will be prepared. In preparing the Appropriation Accounts, instructions issued by the Principal Director of Audit, Central Revenues should be followed. The accounts will be compiled in the proforma prescribed in Para 4 of the Comptroller and Auditor General’s Manual of Standing Orders (Technical) Vol.II. The

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explanations for variations should be drawn up carefully. The explanations for variation should conform to the explanations given in the various control statements, especially the last control statement. After approval by the Principal Director of Audit, the accounts will be forwarded to the Principal Director of Audit, Central Revenues, by the date advised by him. Copies of the Appropriation Accounts will be endorsed to the Comptroller and Auditor General and General Manager(Budget), South Central Railway. The audit certificate in the form prescribed will be signed by the Principal Director of Audit after obtaining the necessary certificate of Audit from the Principal Director of Audit, Central Revenues, in respect of expenditure relating to Group ‘A’ officers and from the Principal Director of Audit, Eastern Railway, in respect of Group ‘B’/Nongazetted establishment and forwarded to the Principal Director of Audit, Central Revenues. (Para 80 of Railway Audit Manual) 437. Appropriation Accounts of Pensionary Charges: The Appropriation Accounts in respect of pensionary charges will be compiled and sent to the Financial Adviser and Chief Accounts Officer, of this Railway. 438. Drawal of H.R.A. and C.C.A.: HRA and CCA will be paid in the various pay ranges at the rates fixed by the Government of India from time to time. H.R.A. at the prescribed rates may be paid to all employees (other than those provided with Government accommodation) without requiring them to produce rent receipts. However, they should furnish a certificate to the effect that they are incurring some expenditure on rent/contributing towards rent. H.R.A. at these rates will also be paid to Government employees living in their own houses subject to their furnishing a certificate that they are paying/contributing towards house or property tax or maintenance of the house. 439. Leave: Leave should be applied for by the staff in the prescribed form. Leave applications will be considered only if they have been recommended by the Asstt. Audit Officer/Section Officer and Branch Officers. The Principal Director of Audit has delegated his powers to sanction all kinds of leave (except Special Casual Leave, Special Disability Leave and Study Leave) to the authorities mentioned in Column - 3 as indicated below, under the authority vested in him by CAG vide letter No.2991-GE.II/109-84 dated 04.01.1985. Category of Period of Leave Employee (1) (2) Asst. Audit 1) All kinds of leave Officers with pay and allowances upto 30 days without a substitute. 2) All kinds of leave with pay & allowances beyond 30 days.

Competent Authority (3) Group Officer concerned

Group Officer incharge of

Remarks (4) Leave to Officers working directly with Pr.DA should be sanctioned only with the approval of Pr.DA.

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All Group ‘C’ staff

All Group ‘D’

3) EOL with or without M.C. and all other kinds of leave.

Administration

1) Regular leave (EL only) upto 30 days without posting a substitute 2) HPL & Commuted leave upto 30 days

Branch Officer

3) EOL with or without M.C. and all other kinds of leave All kinds of leave

Audit Officer/Sr. Audit Officer (Admn) Group Officer incharge of Administration Audit Officer/Sr. Audit Officer (Admn)

(Authority: P.O.O. No.120, dated 10.7.1991) Note: 1. The Branch Officers should sanction the leave based on the leave at credit advised by the Administration section, in a copy of the abstract of attendance returned to them. 2. The Director/Deputy Director will sanction subject to eligibility, Earned Leave upto the limits mentioned above in respect of Asstt. Audit Officers under their Group charge. All kinds of leave applications of Branch Officers are to be submitted to Pr. Director of Audit for sanction (Authority: Circular No. Au/COR/I/Vol.VI dated 8/9.1.2001) 440. Travelling Allowance: Audit staff are governed by the Travelling Allowance rules contained in the Indian Railway Establishment Code Vol.II. The provisions in Supplementary Rules will, however, apply to the Railway Audit staff in respect of journeys on deputation to and from non-railway offices. The staff are required to present their travelling allowance claim in Railway Travelling Allowance Journal Form, in duplicate, to the Bills section. Separate travelling allowance journal should be prepared for every month, even though the same tour may be continued extending over different calendar months. The travelling allowance journal should be scrutinised and submitted to the Controlling Officer, i.e. Audit Officer/Sr.Audit Officer in charge of Bills in the case of nongazetted staff, and Deputy Director/Director in the case of gazetted officers for countersignature, after entering full details in the Register of Travelling Allowance Claims, to be maintained separately for gazetted officers and non-gazetted officers. Particulars regarding the claims viz. date of commencement and completion of journey, number of days, rate of travelling allowance, gross claim, advance of travelling allowance, net claim, date of passing the advance, and the month in which the travelling

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allowance claims have been included will be noted therein. The register should be put up to the Audit Officer/Sr.Audit Officer (Bills) along with the claims of non-gazetted officers which he countersigns. Those of the gazetted officers should be put up to Deputy Director/Director through Audit Officer/Sr.Audit Officer (Bills). The travelling allowance claims of Group ‘B’ Officers and non-gazetted officers are paid through pay sheets. The amount of the claim in each journal will be entered under the column ‘Travelling Allowance’ in the monthly pay sheets. The original travelling allowance journal should be attached to the pay bill and the duplicate travelling allowance journals filed separately in Bills Section. Travelling allowance journals received in the Bills Section upto 10th of a month will be included in the pay sheet of that month. 441. Advance of Travelling Allowance on tour/transfer: Applications for advance of Travelling Allowance on tour should be submitted in the prescribed form. Advance of Travelling Allowance on tour is normally admissible upto 75% of the anticipated claims. A temporary employee should furnish surety bond from a permanent employee, alongwith his application for advance. The advance of Travelling Allowance will be adjusted in the Travelling Allowance Bills to be submitted immediately on the completion of the tour or on 31st March whichever is earlier. The advances granted in the month of March should be adjusted before 30th April. Advance of Travelling Allowance should be noted in the Register of Travelling Allowance claims passed and attested by Audit Officer/Sr.Audit Officer (Bills). 442. Educational Assistance: A Government servant is eligible to draw Children’s Educational Allowance when he is compelled to send his child to a school away from the station at which he is posted and/or residing, owing to the absence of a school of the requisite standard at that station. The rates of allowance effective from 1.8.97 are as under: Primary, Secondary and Higher Rs.100/- p.m. per child. Secondary classes (Department of Personnel & Training’s O.M. No.21017/1/97/Estt(Allow) dated 12.6.98) The allowance shall be admissible to a Government servant throughout the year, not withstanding that no tuition fees is paid during the vacation. Children’s Educational Assistance shall be admissible in respect of children between the age limit of 5 years and 20 years. Assistance is admissible in respect of not more than 3 children born upto 31.12.1987 and shall be restricted to 2 children born thereafter. (Department of Personnel & Training’s O.M. No.21011/2/86/Estt(Allow) dated 3.8.90) The Government servant while applying for this allowance initially, should furnish a certificate as per Rules and thereafter in the months of March and July every year. 443. Reimbursement of Tuition Fees: A Government servant shall be eligible to the reimbursement of tuition fees payable and actually paid in respect of his/her child provided

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that no children’s educational allowance is admissible to him/her. The tuition fees may be reimbursed subject to the following limits w.e.f. 01.08.97. 1. 2. 3. 4.

Class X and below Classes XI & XII Physically handicapped and Mentally retarded Science Fee, if charged separately, in respect of children studying in Class IX to XII and offering Science subjects

Rs.40/- p.m. per child Rs.50/- p.m. per child Rs.100/- p.m. per child Rs.10/- p.m. per child

A Government servant shall not be eligible to draw reimbursement of tuition fees for a child for more than two academic years in the same class and in respect of not more than 3 children at any time born upto 31.12.1987 and shall be restricted to 2 children born thereafter. A certificate shall be furnished as per rules at the time of preferring his initial claim and thereafter in the months of March and July every year. The concession will also apply to all Central Government employees without any pay limits with effect from 01.12.1987. (Department of Personnel and Training O.M. No.21017/1/97-Estt(Allow) dt.12.6.98 read with O.M. Nos.21011/21/88-Estt(Allow) dt.17.10.88, O.M. No.12011/4/88Estt(AC) dt.31.5.89, No.120K/2/83/Estt(AC) dt.27.12.89, No.12011/2/88/Estt(AC) dt.3.8.90 and O.M.No.12013/1/90-Estt(AC) dt.8.5.92) 444. Festival Advance: Festival Advance is granted to the non-gazetted employees whose basic pay does not exceed Rs.8,300/- p.m. for the festivals nominated by the Principal Director of Audit. This advance is admissible for any one festival during the calendar year and is recoverable in ten equal instalments. No Festival Advance for the next year will be granted until the advance granted in the previous year is recovered fully. MONTHLY REVIEW REPORT 445. Monthly Review Report on the activities of Administration Section: The Administration Section should submit a monthly review report on the activities of that section in the proforma given in Annexure XIII to this chapter. This monthly report should indicate the position obtaining on the last working day of that month and should be put up by 15th of the following month to Principal Director of Audit through Deputy Director/Director. (P.O.O. No.85 dated 11.10.1985)

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Annexure XIII (Para 486) CHECK LIST MONTHLY REVIEW OF ACTIVITIES OF ADMINISTRATION SECTION (Position at the end of the month, to be submitted on the 15th of the following month). POSITION AS ON: I. Vacancies: (i)

Senior Audit Officers

:

(ii)

Audit Officers

:

(iii)

Assistant Audit Officers

:

(iv)

Section Officers

:

(v)

Senior Auditors

:

(vi)

Auditors

:

(vii)

Stenographers

:

(viii)

Clerk/Typists

:

(ix)

Record Keepers

:

(x)

Daftries

:

(xi)

Peons/Sepoys

:

(xii)

Safaiwalas

:

II. Promotions Due: (i)

Sr.Audit Officers

:

(ii)

Audit Officers

:

(iii)

Assistant Audit Officers

:

(iv)

Section Officers

:

(v)

Senior Auditors

:

(vi)

Auditors

:

(vii)

Clerk/Typists

:

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(viii)

Record Keepers

:

(ix)

Daftries

:

III. Confirmations Due: (i)

Sr.Audit Officers

:

(ii)

Audit Officers

:

(iii)

Assistant Audit Officers

:

(iv)

Section Officers

:

(v)

Senior Auditors

:

(vi)

Auditors

:

(vii)

Stenographers

:

(viii)

Clerk/Typists

:

(ix)

Record Keepers

:

(x)

Daftries

:

(xi)

Peons/Sepoys

:

(xii)

Chowkidars

:

(xiii)

Safaiwalas

:

IV. Deputationists (Due to return within six months): V.(a) Examinations: 1.

Revenue Audit Examination for Section Officers/Asstt. Audit Officers :

2.

Section Officer Grade Examination

:

Departmental Examination for Auditors

:

Type Test

:

3. 4.

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5.

Limited Departmental Examination for Matriculate Group ‘D’ : (b) Examinations to be arranged : (c) Internal Tests held for SOGE candidates

:

VI. Preparation of Panels Due: (i)

Senior Audit Officers

:

(ii)

Audit Officers

:

(iii)

Assistant Audit Officers

:

(iv)

Section Officers

:

(v)

Senior Auditors

:

(vi)

Auditors

:

(vii)

Clerk/Typists

:

(viii)

Daftries

:

(ix)

Record Keepers

:

VII. Budget: (a)

Current year

(b)

Revised Estimates(Next Year):

(c)

Control Statements

(d)

Reconciliation of monthly expenditure

(e)

:

:

:

Grants-in-aid (Recreation Club)

:

VIII. (a) Number of Fresh Appointments: (i)

Auditors

:

(ii)

Stenographers

:

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(iii)

Clerk/Typists

:

(iv)

Group ‘D’

:

(b) Number to be Trained: (c) Opening History Cards: Audit Officers

:

(d) Gradation List: (e) Opening of Service Book of New Appointees: IX. Rosters: (a)

Are Rosters upto date and

:

authenticate? (b)

Indicate details of dereser-

:

vation proposals pending with C&AG X. Claims: (A) Sanctions: List cases if any of increments not sanctioned in respect of Audit Officers, Asstt. Audit Officers, Section Officers, Sr.Auditors, Stenos, Clerk/Typists, Record Keepers, Daftries and Group ‘D’. (B) Drawals: Certified that there are no outstanding personnel claims except for the following: (i)

More than six months old

:

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(ii)

More than three months old :

(iii)

Between One and three months:

(iv)

Less than One month

XI.

Quarterly Review of Officers who

:

attain age of 50 to 55 years/ or put in 30 years of service XII.

Verification of Service/Leave Accounts

(a) Pensionable staff(including recovery of foreign service contributions to whom due and when last done (b) Settlement of cases of Officers and staff to be undertaken 6 months prior to retirement (c) Pension, D.C.R.G., G.P.F., Encashment of leave to retired personnel due during the month XIII.

Complaints from Staff and Representations from Staff Council

:

Opening balance : Fresh receipts

:

Disposals

:

Closing balance

:

XIV. Hindi Returns: (a) Quarterly Return

:

(b) Half Yearly Return

:

(c) Hindi Meetings

:

(d) Report to Hindi Rashtra Bhasha Committee XV.

:

Outstanding References: (a) Ministry

:

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(b) Comptroller and Auditor General : (c) Other Offices

:

XVI. Submission of Calendar of Returns: (a) Due and actual date of submission: (b) Delayed Returns XVII. Record Management: Maintenance and Destruction of Records due and actually done.

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402. Staff Proposals: The staff proposals should be sent to the Comptroller and Auditor General of India by 25th July every year. To ensure the submission of the proposals by the due date, various sections and Branch Offices should forward their proposals to the Administration section, by 25th June or by any other date prescribed by the Administration Section together with the detailed statistical data, in triplicate. The justification for the existing strength of additional staff required should be supported by data on the basis of monthly average of work done in May, July, January, February and March (excluding March final and supplementary accounts) of the preceding financial year. The following general instructions should be strictly adhered to in formulating the proposals: 1.

The prescribed standard time for each item of work has to be adopted.

2.

Items for which no standards are fixed by the Comptroller and Auditor General of India should be exhibited in a separate statement adopting adhoc standards.

3.

The standard per auditor should be taken as 160 hours per month.

4.

The man-hour statistics compiled by the Section Officer/Asstt. Audit Officer of the section concerned should be got checked independently by another Section Officer/Asstt. Audit Officer nominated for the purpose and reviewed by the Branch Officer (Administration). The man-hour statistics for the whole office should be test checked by Asstt. Audit Officer (Internal Audit). A certificate to the effect that the statistical data prepared by the respective sections has been duly re-checked independently by a Section Officer/Asstt. Audit Officer should be given in the letter forwarding the staff proposals to Comptroller and Auditor General of India.

On receipt of the proposals supported by man-hours statistics from the sections and Branch offices, the Administration Section should submit a note to the Principal Director of Audit indicating the particulars of posts proposed for creation and continuance. Where the increase or decrease in work load as compared with the previous year is not more than 5%, detailed staff proposals need not be forwarded to Comptroller and Auditor General of India. However, a certificate indicating that there is no reduction of staff based on work load and as such the existing strength may be allowed to continue may be sent to Comptroller and Auditor General of India. In case the increase in work load in a particular group or groups justifies more staff (and the work load has increased by more than 5% as compared with the previous year) proposals may be sent for sanction of additional staff for this particular group or groups. In all such cases, reasons for variation by more than 5% as compared with the work load during the previous 2 years may be given. Only the posts approved by the Principal Director of Audit for creation and continuance should be included in the staff proposals to be submitted to the Comptroller and Auditor General of India. The proposals should be submitted in four parts. Part I :

Proposals based on the prescribed standard rates of work, taking the group/section as a whole.

Part II :

Proposals pertaining to various sections in respect of which work standards/norms have not been prescribed.

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Part III :

Proposals for posts required for casual/seasonal items of work as well as those pertaining to the continuance of the existing posts which have been sanctioned on adhoc basis.

Part IV :

Proposals for additional posts to cater to anticipated increase in work on the basis of average increase in work during the preceding 3 years. The following statements should also be furnished with the staff proposals:

i)

A summary of the proposals in the form enclosed to Comptroller and Auditor General of India’s office circular letter No.1766-BRS/185-78 dated 24th June, 1978.

ii)

A statement showing the group/section-wise distribution of the regular sanctioned strength (both permanent and temporary) other than casual posts as on 1st March.

iii)

A statement of regular temporary posts for which provision is proposed to be made in Revised Estimates and Budget Estimates in the form enclosed to Comptroller and Auditor General of India’s circular letter No.1393-BRS/87-65 dated 29th June, 1965.

iv)

A statement indicating clearly the additional posts proposed on work standards/norms for the different groups/sections.

v)

Full details of the existing permanent posts held in abeyance together with the justification for their countinued retention or otherwise.

vi)

Full details of supernumerary/shadow/deputation/special deputation reserve posts and the necessity for their retention.

vii)

Staff position statements in Forms 14 and 15 of the Comptroller and Auditor General of India’s Manual of Standing Orders (Administrative) Volume.I showing the total staff provided in the current year’s budget, additional posts proposed for creation during the year and the total requirements for the succeeding year.

viii)

A brief note indicating the availability of qualified persons and how the additional posts proposed for inclusion in the budget/revised estimates are proposed to be filled up during the year.

As the posts of Section Officers are based on the number of posts of Auditors, man-hour statistics for posts of Section Officers need not be submitted. The Administration Section while consolidating the man-hour statistics, will work out the total number of posts of Section Officers for the entire office. In doing so, the yardstick laid down in Comptroller and Auditor General’s letter No.2484-RAI/8-3/64 dated 26th August, 1964 has to be applied. However, if additional posts of Section Officers/Asstt. Audit Officers are required based on separate norms for inspection, Review of contracts and other items of original work to be done by Section Officer/Asstt. Audit Officer, justification supported by detailed statistics should be furnished by the concerned section to the Administration for consolidation. 403. Creation of Posts: All proposals for additional establishment should be scrutinised personally by the Head of the Office. Except in most exceptional and urgent cases, no proposals for additional staff or expenditure will be forwarded to the Comptroller and Auditor General during the first six months of the financial year, unless it has been specifically provided for in the Budget Estimates or the extra cost can be definitely met from

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savings within the budget provision of the office. In that case, it should be clearly stated that the cost involved will be met from savings in the budget. After the first six months of the financial year, proposals may be made if the expenditure is unavoidable. In making these proposals, it must be clearly explained why the provision could not be made in the Budget Estimate and why the expenditure cannot be postponed. 404. Sanctions: All sanctions relating to gazetted posts are accorded by the Comptroller and Auditor General. The Principal Director of Audit is empowered to accord sanction for the creation of posts in Group ‘C’ grade which have already been approved unconditionally by the Comptroller and Auditor General for creation during the next year and have been included in the Budget. As provision for such posts will be made only for four months, the delegated powers are to be exercised within these financial limits. (Comptroller and Auditor General’s letters No.1267-BRS/60-69 dated 12.5.1970 and No.1269-BRS/60-69 dated 13.5.1970). Sanction for the creation of new temporary posts of Group ‘D’ is also accorded by the Principal Director of Audit. The annual review for conversion of temporary posts into permanent posts may be conducted in the first week of July each year. (Comptroller and Auditor General’s letter No.1224-N.III/64-82/IV dated 28.4.1983). Sanction for the conversion of temporary posts of Group ‘C’ and ‘D’ into permanent ones, is accorded by the Principal Director of Audit, subject to the following conditions: 1.

The posts are required for the work of a permanent nature and have been in existence for a period of not less than three years.

2.

90% of these temporary posts under each category upto Section Officer’s level may be converted into permanent posts.

3.

In case the calculation of posts at 90% result in fraction of post, the formula to be applied is that one half of more than half should be taken as one and less than half should be ignored.

Where the total number of posts which otherwise qualify for conversion into permanent posts exceed 90%, then the posts upto 90% may be converted into permanent posts by the Principal Director of Audit and proposals for the posts exceeding 90% may be sent to the BRS Section of Comptroller and Auditor General’s office for seeking approval to the conversion of temporary posts into permanent ones. The Principal Director of Audit is empowered to sanction continuance of temporary posts upto that of Section Officers and the creation of such posts on a temporary basis for seasonal work and for temporary work of an emergency nature subject to the following conditions. A.

Conditions for the continuance of the posts:

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1.

That all the circumstances justifying the original sanction by the Comptroller and Auditor General continue to exist.

2.

That funds have either been provided in the budget/revised estimates or can be found by valid reappropriation from within the sanctioned budget allotment; and

3.

That a report will be submitted to the Comptroller and Auditor General of having extended the posts, with brief reasons for such extension.

B.

Conditions for the creation of Temporary Posts for seasonal/emergent work of a temporary nature:

1.

That all the instructions issued by competent authorities regulating staff composition and standards of work are strictly observed.

2.

That funds to meet the cost of the temporary posts can be found by valid appropriation or reappropriation from within the sanctioned budget allotment and that no expenditure is involved in future years.

Note: In respect of seasonal temporary posts that may be created by the Principal Director of Audit, there should be specific budget provision while for temporary posts required for emergent work it would be sufficient if funds can be found by valid appropriation or reappropriation. A half-yearly report showing the sanctions issued in exercise of these powers should be submitted to the Comptroller and Auditor General in September and March every year (Nil report need not be furnished). C. Creation/Continuance of posts required for clearance of arrears: Sanction of the Comptroller and Auditor General should be obtained for the continuance or creation of posts required for clearance of arrears. (Comptroller and Auditor General’s letter No.2781-NGE.II/59-61 dated 21.9.1961 and Ministry of Finance’s (Government of India) letter No.F.20(7)-EG.I/61 dated 5.9.1961). 405. Register of Sanctions: All sanctions for permanent and temporary posts should be recorded in a register, exhibiting therein permanent and temporary posts separately. The register should contain detailed information about the posts, date of sanction, purpose for which sanctioned etc. The entries in the register should be attested by the Audit Officer/Sr. Audit Officer (Administration). 406. Sanctioned strength: A statement showing the sanctioned strength and staff in position as on first of every month and another showing the additional regular temporary posts sanctioned by the Principal Director of Audit under his powers as on the last day of the preceding month should be sent to the Comptroller and Auditor General so as to reach him on 10th of every month. 407. Recruitment of Auditors, Clerk/Typists and Stenographers: The recruitment of staff in the above cadres in this office is done through Staff Selection Commission, Chennai and Bangalore(in respect of vacancies falling in Karnataka region). The requisitions for the vacancies proposed to be filled in may be sent to Staff Selection Commission,

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Chennai/Bangalore, as the case may be, according to the periodicity prescribed. The requisition should clearly indicate the requirements both under General and Reserved categories. A note may be kept in the Calendar of Returns maintained in the Administration Section to ensure the timely despatch of the requisition to the Staff Selection Commission. The list of persons recommended for appointment along with the dossiers of each person in original and copies of various certificates submitted by the candidates to the Staff Selection Commission is furnished by the Staff Selection Commission in response to the requisitions placed. On receipt of the dossiers from the Staff Selection Commission, action should be taken to check the original certificates of the candidates regarding their age, educational qualifications, claim regarding membership of SC/ST or an Ex-servicemen, Physically handicapped person etc. and to issue offers of appointment. If some of the candidates do not respond to the offers of appointment sent to them, the vacancies thus remained unfilled may be included in the next requisition to be sent to the Staff Selection Commission. An intimation may also be sent to the Staff Selection Commission about the persons who did not respond to the offers made, returning the dossiers of such candidates to the Commission. The candidates should be medically examined before they are appointed. 408. Recruitment of Group ‘D’: For filling up of vacancies in Group ‘D’ cadre, requisition should be sent to the local Employment Exchange, in the prescribed format, keeping in view the extant instructions. Minimum educational qualification for recruitment to Group ‘D’ posts(Peons) is a pass in the 8th Standard or equivalent examination. The possession of the minimum educational qualification of 5th standard is desirable for recruitment of Sweepers, Farashas, Chowkidars etc. Applications sponsored by the Employment Exchanges and those who are already working as contingency paid labour in the office, provided they are registered with the Employment Exchange and possess the requisite qualifications for recruitment to the Group ‘D’ cadre should only be considered for appointment. (Authority: (1) Comptroller and Auditor General’s letter No.3193-NGE.III/5283 dated 16.1.1984 (Page 44 of Au/A/VI/2/Vol.III/Orders., (2) Comptroller and Auditor General’s letter No.4561-NGE.III/34-86/Vol.I-KW.3 dated 30.12.1987 (Page 104 of Au/A/Confdl/16/Orders)). 409. Relaxation of age limit: The upper age limit for recruitment is 27 years for Group ‘C’ and 25 years for Group ‘D’ staff. The upper age limit may be relaxed upto 3 years in the case of OBC candidates and five years in the case of Scheduled Caste/Scheduled Tribe candidates. (Page 247 of Au/A/16/O/Vol.II, Page 60 of Au/A/16/O/Vol.III, Page 121 of Establishment and Administration Manual, 2000 Edition) The upper age limit in respect of persons who are within the prescribed age limit and placed in the panel may be relaxed upto one year by the appointing authority for their appointment (Para 6.2.5 and 8.2, – Manual of Standing Orders (A) Vol.I). Relaxation of age limit requiring Comptroller and Auditor General’s approval should be referred to him.

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410. Extension of time limit for joining duty for new recruits: Principal Director of Audit is empowered to grant extension of time to the extent indicated below:(i)

Without any limit where the delay is due to non-completion of medical formalities in respect of the candidate himself. In such cases, the panel seniority will remain intact;

(ii)

In all other cases, extension upto a maximum period of two months beyond the last date indicated in the offer of appointment can be granted. Seniority will be fixed with reference to the date of appointment of the candidate. (Para 6.2.10 of Manual of Standing Orders(Admn) Vol.I)

411. Appointments on Compassionate Grounds: Appointments in Group ‘C’ & ‘D’ Cadres of dependents of Government servants who die in harness (while in service including death by suicide) or who retire on medical grounds, will be considered by the Heads of Departments based on the following criteria:a)

When a Government servant, appointed on regular basis, dies in harness or retires on medical grounds, leaving his family in penury and without any means of livelihood and in the event of there being no other earning member in the family.

b) The appointment on compassionate grounds of a spouse/son/daughter/brother or sister (in the case of unmarried Government servant) of a Government servant will be considered even when there is an earning member in the family of the deceased Government servant, if the Principal Director of Audit is satisfied that the grant of concession is justified having regard to the number of dependents, assets and liabilities left by the Government servant, income of the earning member etc. The concession of compassionate appointment in the case of Government servant retired on medical grounds will not, however, be allowed in cases where the Government servant has retired after attaining the age of 55 years for Group ‘C’ staff and 57 years for Group ‘D’ staff. The appointment of spouse/son/daughter etc. of the deceased Government servant could be considered by relaxing the upper age limit wherever found to be necessary. The lower age limit shall, however, in no case be relaxed below 18 years of age. In the matter of exemption from the requirement of passing the typing test, those appointed on compassionate grounds to the post of Clerk/Typist will be governed by the general orders issued in this behalf. In the case of appointment of widows of deceased Government servants as peons, they will be exempted from the requirement of the educational qualifications provided the duties of the post can be satisfactorily performed by her without possessing such educational qualifications. She will be allowed to continue in service even after remarriage. Compassionate appointments will be made upto a maximum of 5% of vacancies falling under direct recruitment quota in Group ‘C’ & ‘D’ cadres and will be adjusted in the recruitment roster against the appropriate category. A person appointed on compassionate grounds should give an undertaking in writing that he/she will maintain properly the other family members who were dependent on

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the Government servant in question and in case it is proved subsequently that the family members are being neglected or are not being maintained properly by him/her, the appointment may be terminated forthwith. Cases of missing Government servants are also covered under the scheme for compassionate appointment subject to the following conditions:A request for compassionate appointment can be considered only after a lapse of atleast 2 years from the date from which the Government Servant has been missing, provided that (i) (ii) (iii)

FIR to this effect has been lodged with the Police, the missing person is not traceable, and the competent authority feels that the case is genuine.

(Authority: Dept. of Personnel & Training O.M. No.14014/6/94 – Estt(D) dt.9.10.1998 received under CAG’s Lr.No. 678/N(APP)/18-99/Vol.V dt.14.6.1999). 412. Recruitment against Sports Quota: Appointments of meritorious sportsmen can be made by the Principal Director of Audit to any post in Group ‘C’ or Group ‘D’ as per the extant orders of Comptroller and Auditor General of India. Recruitment against vacancies reserved for sports quota should be made only after calling for applications from eligible candidates inserting advertisements in the leading Newspapers and Employment News. Clerk/Typists appointed against sports quota would not earn any increment nor become eligible for confirmation and promotion, until he qualifies in the requisite type test. Failure to qualify in the prescribed test will result in adverse consequences as laid down in CAG’s Lr.No.301-N.2/46-87 dated 1.4.1987. 413. Offer of appointment and appointment orders: Before appointment, the candidates are required to submit the following documents with the letter of acceptance of offer of appointment. 1.

Certificate of character in the prescribed form from the Head of the Educational Institution last attended or from a Gazetted Officer duly attested by a District Magistrate, Sub-divisional Magistrate or Stipendiary First Class Magistrate. This certificate should have reference to the 2 years immediately preceding.

2.

Attestation form, in the prescribed form duly completed.

3.

SC/ST and OBC certificate from a Magistrate/Tahsildar/Sub-Divisional Officer (In cases of SC/ST and OBC candidates only).

4.

Declaration indicating whether he/she has more than one wife/husband living.

5.

No objection certificate from his/her employer and release order from his/her employer accepting his/her resignation from that service (In cases of employed persons only).

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6.

Displaced person certificate from a Gazetted Officer of the Central Government etc. (In cases of displaced persons).

414. Verification of Identity: The identity of the candidate is verified at the time of appointment by comparison of the photograph affixed on the attestation form and the signature in the joining report with that on the original application and other records received from Staff Selection Commission. 437. Promotion of Auditors as Senior Auditors: Auditors in the Grade of Rs.4000-1006000 who have completed 3 years of regular service in the grade as on 1st October and have passed the Departmental Examination for Auditors will be eligible for promotion as Sr.Auditors. (Comptroller and Auditor General’s letter No.718-N.2/41-84 dated 23.7.1984) 438. Promotion of Clerk/Typists as Auditors: The posts in the Auditors’ cadre shall be filled as follows: a) 40% of posts by promotion of Clerks with 5 years regular service in the grade on seniority basis subject to rejection of unfit; and b) 10% of posts by promotion from the following: (ii)

Clerks on passing Part I of S.O.G.E.

(iii)

Graduate clerks with 3 years regular service in the grade on passing the Departmental Examination for Auditors; and

(iv)

Graduate Group ‘D’ officials with 3 years regular service in the grade on passing the Departmental Examination for Auditors.

(Authority: Amendment of Recruitment Rules received vide C&AG’s letter No.72-NGE(App)/40-99 dt.31.5.2000 - Page 78 of AuA/16/O/Vol.III) Seniority of Clerk/Typist transferred from other offices at their own request will be the gradation list seniority for the purpose of promotion as Auditor. The promoted Clerk/Typist will have to pass the Departmental Examination for Auditors within two years of his promotion but if an examination is to be held within 90 days of the promotion, he may not take it, but may instead take the six consecutive examinations held immediately thereafter. If he does not pass the examination within the number of chances allowed, he will be reverted and the seniority again for promotion is regulated from the date of reversion.

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Clerk/Typists who came out successful in the Section Officer’s Grade Part I Examination may be appointed as Auditors against the direct recruitment vacancies immediately available thereafter. For this purpose, the requirements of age and minimum educational qualifications prescribed for appointment of Auditors may be deemed to have been relaxed in their favour. On their appointment as Auditors, such Clerk/Typists will be exempted from passing the Departmental Examination and their pay will be fixed under the normal rules of pay fixation. (Comptroller and Auditor General’s letter No.2165-NGE.III/54-68 dated 30.9.1969 - Page No.115 of file No.AuA/Con/15). 439. Promotion of Group ‘D’ employees: (i) Promotions of Peons to the cadre of Daftry are made on the basis of seniority-cum-fitness only. Peons with a minimum of 3 years of regular service in the grade will be eligible for consideration for promotion as Daftry/Jamadar. (Comptroller and Auditor General’s letter No.1019-NGE.II/90-67 dated 17.7.1967 of AuA/Con/15, No.1452-N.2/39-85 dated 18.12.1985 of AuA/V/46/Orders and No.197-N.2/49-87 dated 27.2.1987) (ii) Any Group ‘D’ employee with minimum educational qualification of 8th Standard and 7 years of service as regular Group ‘D’ will be eligible for appointment as Record Keeper (Group ‘C’). The appointment will be on seniority-cum-fitness basis. (Comptroller and Auditor General’s letter No.3945-N.2/74-83 dated 16.12.1983 and 105-N.III/1-82 dated 4.2.1988) 25% of the regular posts of the Record Keepers will be in functional Selection Grade (Rs.3050-75-3950-80-4590) and Record Keepers with a minimum of 3 years of regular service will be eligible for promotion to this grade on seniority-cum-fitness basis. (C&AG’s letter No.105-N-2/1-88 dated 4.2.1988 and No.261-N.2/83-90 dated 27.7.1991 - Pages 24 and 35 of AuA/V/66/O/Vol.I) (iii) 10% of the vacancies in the cadre of Clerk/Typists occurring in a recruitment year shall be filled according to the 20-point roster by the Matriculate Group ‘D’ employees who have completed 3 years of service as Group ‘D’ and passed the Limited Departmental Competitive Examination. (Comptroller and Auditor General’s letter No.E.2-OSD(P)/73 dated 18.12.1973 - AuA/V/46/Orders) Matriculate Group ‘D’ employees who have completed 3 years regular service on the 1st day of the month in which the examination is held are eligible for promotion against 5% vacancies in the cadre of Clerk/Typists on seniority basis. The promotee Matriculate Group ‘D’ will have to pass the requisite type test. The conditions prescribed in Para 435 (Official Manual) will apply mutatis mutandis in case the candidates who fail to pass the type test. {(1) Comptroller and Auditor General’s letter No.290-N.2/46-87 dated 27.3.1987 - Page 290 of AuA/V/46/Ord. Vol.I); (2) CAG’s letter No.242-Exam/161-83/Vol.II dt.23.4.87; (3) CAG’s letter No.301-N.2/46-87 dt.1.4.87 (Page.294)}

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(iv) Clerk/Typists including those promoted from Group ‘D’ cadre are not allowed increment unless they pass the requisite type test in English. (Please see Para 436(iii) - Office Manual) 440. Officiating promotions in short term vacancies: Short term vacancies arising may be filled in the normal manner in cases where the duration of the vacancy exceeds 30 days. This limit will apply irrespective of whether it is a single vacancy or part of a chain of vacancies. Officiating promotions in vacancies of 30 days duration or less may be made only in very exceptional circumstances with the prior personal approval of the Head of Department. (Ministry of Finance O.M.No.F.10(22)-E(Coord)/74 dated 18.6.1975 Page 144 of AuA/VI/2 Vol.II/Orders) 441. Seniority: (1) The inter-se seniority of direct recruits will be regulated in accordance with the position assigned to them by Staff Selection Commission. If a new recruit does not join within the prescribed period, the seniority of such candidates will be reckoned on joining duty as mentioned in Para 410(Office Manual). (2) The seniority of Auditors who are reverted as Clerk/Typists on account of their failure to pass the Departmental Examination and who are subsequently promoted as Auditors will be fixed with reference to the date of their re-promotion to the Auditors’ cadre. No weightage for past service in the Auditors’ cadre will be given to such Auditors for the purpose of seniority. (3) The seniority of the persons promoted from the Clerk/Typists cadre to the Auditors’ cadre should be determined with reference to the date of promotion. However, in cases of advance promotions, the seniority will be determined as if they had been promoted against the appropriate points in the register. (Comptroller and Auditor General’s letter No.D.O.F.3-OSD(P)73 dated 5.3.72 and No.776.F.3.OSD(P)/73 dated 23.4.73 (48) of AuA/V/46/Order) (4) When promoted Clerk/Typists who fail to pass Departmental Examination are reverted, their total service as Auditor and Clerk/Typist will be counted for seniority of Clerk/Typists. (Comptroller and Auditor General’s letter No.1867-NGE.III/32-68 dated 5.9.1968) (5) In the case of mutual transfers, both the staff transferred will be assigned seniority for the lower of the two lengths of service. In the case of unilateral transfer, the staff concerned will rank as juniormost on the date of joining the new office. 443. Transfers: The staff are liable for transfer to any of the units including the Branch offices. No member of the staff, including the Audit Officer/Sr. Audit Officer should normally be kept in the same group beyond five years. Retention in a particular group

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beyond five years will be allowed only in exceptional circumstances and with the specific orders of the Head of Department. (Comptroller and Auditor General’s letter No.215-PC(COORD)/3-87 dated 17.11.1987 – Page 211 of AuA/V/55/Vol.II). By the due date prescribed, the sections should furnish an annual return to Administration section indicating the section and the periods during which the staff have worked during the year under report. A register called “Staff Movement Register” showing all the particulars regarding movement of staff should be maintained in the Administration Section. 438. Preparation and registration of Bills: All bills received in the office from the staff or from outsiders should be entered in chronological order in the Register of Bills to be maintained separately for different categories of bills such as Travelling Allowance Bills, bills for Medical Reimbursement, Reimbursement of Tuition Fees. At the time of passing the bills each entry in the register of bills should be attested by the Branch Officer. Remarks regarding passing of the bills or otherwise should also be given in the remarks column of this Register. A progress report showing the details of the bills outstanding for more than a week should be put up to the Branch Officer on every Monday. 459. Abstract of Attendance: The Branch/Divisional Audit Officers are required to send to the Administration section by the 16th of each month abstract of attendance of all the Asstt. Audit Officers and non-gazetted staff in that Branch/Division for the period from the 15th of previous month to the 14th of the current month. The abstract of attendance forms the basis for the preparation of pay bills. 460. (a) Salary bills of Gazetted and Non-gazetted officers: The preparation of all the pay bills of officers and staff (Group “B”, “C” & “D”) of this office has been taken over on the computer by the EDP Centre of South Central Railway with effect from 01.04.1988, using the same programme followed by the Railway Administration. Bills are being prepared for Gazetted and Non-gazetted officers for cash and cheque system separately. Bills in respect of all the units are passed and payment arranged by the Financial Adviser and Chief Accounts Officer, South Central Railway. The procedure to be followed is detailed in P.O.O. No.113 dated 19.12.1988. (b) System of Payment to Group “A” Officers: The pay and allowances of Group “A” Officers of this office are drawn by this office in the same manner as for staff and Group “B” Officers and sent to the Pay and Accounts Officer(Audit), Office of the Accountant GeneralII, Andhra Pradesh, Hyderabad. 461. Signing of Pay Bills: Pay Bills after check by the Section Officer/Asstt. Audit Officer should be submitted to the Audit Officer/Sr.Audit Officer(Bills) nominated for the purpose with the accompaniments for approval and signature. The specimen signature of the officer authorised to sign bills will be sent to the Financial Adviser and Chief Accounts Officer. Whenever there is a change in nomination, the specimen signature of the officer should be sent to the Financial Adviser and Chief Accounts Officer cancelling the authority delegated to the outgoing officer. (Para 90 of Railway Audit Manual)

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462. Increment Register: All increments accrue as a matter of course in terms of Fundamental Rules 26 unless withheld as a disciplinary measure. The Register of Increments will be maintained in Form-SY.299. In the first week of every month, cases of all staff whose normal increments fall in that month should be reviewed taking into account all factors which may have the effect of postponing the increment, and the actual date of next increment and the rate of pay after such date worked out and noted in the respective columns against the names of the staff concerned. The Increment Register should be put up through the Audit Officer/Sr.Audit Officer (Bills) to the Deputy Director/Director incharge of Administration by the 10th of every month. Newly recruited clerk/typists (on sports quota and compassionate grounds) including those promoted from Group ‘D’ cadre will not be granted increment unless they pass the prescribed type test. (Para 290 of Manual of Standing Orders(Admn.) Vol.I and Para 99 of Railway Audit Manual). 464. Income Tax: The amount of income tax to be deducted monthly from each member of the staff whose income is taxable should be calculated twice in a year i.e. first in August (approximately) and finally in February. In the Pay bill of February, the final adjustment of the income tax recovery will be made taking into account the total amount recovered till then on approximate basis. Particulars such as amount of Life Insurance premia, amount of Postal Cumulative Time Deposit etc. should be called for from the staff for making the final assessment. At the close of the financial year, a statement of income tax deducted at source for the financial year should be made out in triplicate from the office copies of the pay bill register. Two copies of the statements should be submitted to the Financial Adviser and Chief Accounts Officer. (Ministry of Home Affairs O.M. No.24/10/64-AB dated 26.3.65) 465. Recovery of rent for Railway Quarters: Rent, electricity charges, and water charges are required to be recovered from the staff who are in occupation of Railway quarters at the same rate as are applicable to the railway staff. A rent roll in the form prescribed should accompany the Pay Bill. 466. Recovery Register: Separate Recovery Registers should be maintained for each category of recovery. Only one register should be maintained for the whole office in respect of each category of recovery. The following are the recoveries for which the registers are maintained. 1. 2. 3. 4. 5. 6. 7.

Advance of pay on transfer. General Provident Fund Advance. Advance for conveyances. Festival Advance. Fan Advance. House Building Advance. Loans due to Co-operative Credit Society.

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Entries in respect of items (1) to (6) are made from office orders/sanctions and entries in respect of item (7) are made from the debit schedule received from the Cooperative Credit Society. Actual recoveries effected through the pay bills should also be noted in the register monthly under the various headings and attested by the Section Officer/Asstt. Audit Officer. 467. Supplementary Bills: The pay and allowances of any member of the staff (when not drawn through the main pay bill) will be drawn through a supplementary bill. This will be prepared in the same manner as that of the main pay bills. 468. Arrear Bill: Arrears of pay, allowances or leave salary etc. if more than three months old, will be drawn through a separate pay bill giving indication to the main pay bill in which it was not drawn. A note of the arrear bill should be made in the office copy of the bills for the period to which the arrears pertain duly attested by the Section Officer/Asstt. Audit Officer(Bills) to obviate the arrears being claimed for the second time. The certificates mentioned in Para 276 of the Treasury Rules Vol.I should be recorded on the arrear bill. 469. Last Pay Certificate: Last Pay Certificate is required to be prepared only when the staff are transferred out of this office i.e. to the jurisdiction of another Accounts Office. 470. Disbursement of Pay and Allowances: Necessary endorsement should be made on the pay bill indicating the office where the payment is to be made on the pay day. The Audit Officer/Sr.Audit Officer(Administration)/Branch Officer should nominate a Senior Auditor for witnessing payment on the pay day. For payments on other than pay day, the procedure laid down by the Financial Adviser and Chief Accounts Officer from time to time should be followed. In terms of Para 70 of Railway Audit Manual, audit of expenditure relating to this office is done by the Principal Director of Audit, Eastern Railway. Copies of all sanctions and office orders should invariably be endorsed to the Audit Officer. Comptroller and Auditor General has fixed 25th of every month as the due date for receipt of paid vouchers for the previous month by the Audit Officers (CAG’s letter No.1149-TAI/239-66 dated 20.4.1967). Financial Adviser and Chief Accounts Officer, South Central Railway has been requested to adhere to the date fixed by the Comptroller and Auditor General strictly vide this office letter No.AuA/XI/1/O dated 4.5.1970. 472. Maintenance and verification of Service Registers and Leave Accounts: The maintenance of service registers and leave accounts of the Group ‘A’ and Group ‘B’ officers and non-gazetted staff of this office is the responsibility of Administration Section. The posting of all office orders concerning the official events of an employee in his service register should be done as and when they occur. Section Officers/Asstt. Audit Officers are authorised to attest entries in the service book of non-gazetted staff other than those on the first page of the service book and annual verification of service. These powers will not, however, be exercised by them in respect of entries in their own service register. The Audit Officer/Sr.Audit Officer (Admn.) who is delegated with powers to attest entries on the first page of the service register, should verify 10% of the other entries in the service books and initial them in token of their having done so. The Audit Officer/Sr.Audit Officer (Admn.) is delegated with powers to attest the entries in the Service Register and the leave account of all the gazetted officers and these entries should be verified to the extent of 10% by the Deputy Director/Director (Admn.) every year.

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(Ministry of Finance letter No.3(3)-E-G.I/67 dated 20.4.1967 received under CAG’s letter No.1384-Tech.Admn.I/698.66 dated 3rd May, 1967 and CAG’s letter No.2888Tech.Admn.I/51-60 Volume III dated 23rd August, 1968). The service of each pensionable employee must be verified from the pay bills every year and a certificate regarding such verification recorded in the service register soon after the close of the financial year. A report to the Comptroller and Auditor General that such certificates have been recorded should be sent by 10th July. Service registers of staff who may be permanently transferred from other Audit Offices should be reviewed on receipt to see that the certificate of verification of pensionable service till the end of the month preceding their transfer has been recorded and attested. (Soon after an Officer is confirmed in a Gazetted post, action should be taken to arrange for the non-gazetted portion, of his service being verified by the Principal Director of Audit, Eastern Railway). All service books and leave accounts of staff should be thoroughly checked by Internal Audit Section and that of the staff of the Internal Audit section should be checked by a Section Officer/Asstt. Audit Officer nominated by the Deputy Director/Director, once a year. The service books should be verified and attested by the staff concerned once every year and an annual certificate to this effect submitted to the Comptroller and Auditor General by 30th September every year. A programme should be drawn up for the verification of the service registers of the staff, in batches early in August. (CAG’s letter No.2515-NGE.I/68-67 dated 20.11.1967 and SR.197 to 203) 473. Office Order Books: Separate Office Order Books should be maintained for Gazetted Officers and Non-Gazetted Officers in which the Office Orders are pasted in chronological order. 476. Medical Attendance Rules: Compilation of Central Service (Medical Attendance) Rules, 1944 and orders issued by the Government of India from time to time should be referred to in dealing with the claims for reimbursement of medical expenses. Audit Officer/Sr.Audit Officer (Bills) is delegated with powers to countersign the Medical reimbursement claims of Non-gazetted staff subject to the following conditions. (i)

That the bills for more than Rs.200/- requires the counter signature of Deputy Director/Director in charge of Administration.

(ii)

Cases of the Government servants whose progressive total of bills exceeds Rs.1,000/per annum should be brought to the notice of Deputy Director/Director in charge of Administration..

(iii)

Reports of Internal Audit and replies thereto should be submitted to Deputy Director/Director in charge of Administration, for information. (CAG’s letter No.57-NGE.I/78-80 dated 15.1.1982)

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All bills for charges on account of medical attendance and treatment should be countersigned by the Controlling Officers who are authorised to countersign travelling allowance bills of the government servant concerned. A Register of Medical Claims should be maintained in the Bills Section allotting separate pages for the various employees. The register should be submitted to the Audit Officer/Sr.Audit Officer(Bills)/ Deputy Director/Director fortnightly showing the position of the claims received but not passed within a week, giving also brief reasons for the delay in disposal of the claims.479. Hostel Subsidy: A Government servant shall be eligible to the grant of a subsidy at the rate of Rs.300/- per month per child if he is obliged to keep his children in the Hostel of a residential school away from the station at which he is posted and/or residing, because of his transfer. This shall be payable upto Higher Secondary and Senior Secondary stage and shall not be admissible in respect of a child for whom Children’s Education Allowance is drawn by a Government servant. A certificate as per rules should be furnished at the time of preferring his initial claim and thereafter in the months of March and July every year. (Department of Personnel and Training O.M. No.21017/1/97-Estt(Allow) dt.12.6.98 read with O.M. Nos.21011/21/88-Estt(Allow) dt.17.10.88, O.M. No.12011/4/88Estt(Allow) dt.31.5.89, No.12011/2/83/Estt(Allow) dt.27.12.89, No.12011/2/88/Estt(Allow) dt.3.8.90 and O.M.No.12013/1/90-Estt(Allow) dt.8.5.92) 481. Cycle Advance: Cycle advance is granted to the non-gazetted employees whose pay does not exceed Rs.5,000/- p.m. The exact date of receipt of the advance by the employee should be intimated to the Administration Section immediately after the drawal. The advance is recoverable in not exceeding 30 instalments. A second advance for the purchase of a bicycle will not be granted to an employee until the completion of three years since the drawal of the previous advance. 482. Table Fan Advance: Group ‘D’ staff who apply for fan advance should submit the electricity bill (receipts) and also produce a certificate in the following form: “I certify that: i. ii. iii. iv.

The portion which I occupy is electrified. A plug point exists for the use of a table fan. I do not have a fan in my house, and Sri/Smt._____________________ in whose name the electricity bill has been made out is my house owner/father/wife.”

The amount of advance which may be granted should not exceed Rs.1,000/- or the anticipated price of the Table Fan, whichever is less. A second advance for the purchase of a fan is not granted within ten years of the first one. To ensure this, a record of the grant of the advance should be made in the service register of the employee. (Para 221 A to D of G.F.Rs.)

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483. Passes/PTOs: Privilege Passes/PTOs required by the Officers and staff of Administration section and those working in the sections located in the Main Office annexe building will be issued by the Asstt. Audit Officer (Administration Section). Other kinds of passes required by officers and staff working in Divisions and sections located at Headquarters, Secunderabad, will be issued by the Audit Officer (Administration) (See Para 235). 484. Grant-in-aid to Recreation Club: Grant-in-aid for provision of amenities or recreational or welfare facilities to the staff of the Central Government Departments will be regulated in the manner indicated in Ministry of Home Affairs Office Memorandum No.2/167/59-Welfare dated 10th March, 1961, as amended in Office Memorandums No.24/2/62-Welfare dated 12.10.1962 and Memorandum No.2/8/67 - Welfare dated 11.5.1967 and Ministry of Finance (Expenditure) O.M. No.F(14)(2)-E-II(A)/89 dt.19.9.89. Proposals for annual grant-in-aid should be formulated in accordance with the orders issued by the Comptroller and Auditor General of India from time to time. The Recreational Clubs should submit their accounts to the Principal Director of Audit immediately after the close of the financial year in the form given in the Annexure to Comptroller and Auditor General’s letter No.890-NGE/III/114-63 dated 23.4.1963 (duly audited by their Internal Auditor). The accounts should be accompanied by all vouchers. Such of the items of expenditure which are not supported by vouchers should be certified by the President/Secretary/Treasurer of the club to the effect that the expenditure was actually incurred and it was not possible to get a receipt. The accounts of the clubs should then be examined by an auditor nominated by the Principal Director of Audit and signed by the auditor concerned in the prescribed proforma. Grant-in-aid for the first quarter of the year will be released in the beginning of each financial year. The balance will be released only after the submission of the accounts for the previous year. An illustrative list of items on which expenditure can be incurred out of the grant-in-aid is given in Ministry of Home Affairs O.M. No.2/14-61-Welfare dated 7.12.1961. The grants are intended only for provision of amenities or of recreational or welfare facilities and would not cover within their scope any compassionate objects such as death benefits. No expenditure should be incurred out of grant-in-aid for organization of excursion trips. Principal Director of Audit is empowered to sanction recurring grants-in-aid for provision of amenities to the recreation clubs on the terms and conditions stipulated in the Ministry of Home Affairs O.M. No.2/167/59-Welfare dated 10.3.1961 subject to budget provision having been made. Copies of the sanctions issued by the Principal Director of Audit should be endorsed to the Comptroller and Auditor General. The expenditure on grants-in-aid is chargeable to the head “216-Audit-grants-in-aid”. (Rule 153 - G.F.Rs. as amended from time to time).

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485. Audit Bulletin: The Audit Bulletin is issued by the Comptroller and Auditor General quarterly. The material for incorporation in the Audit Bulletin is collected from sections/divisions and a report furnished to Comptroller and Auditor General on the 10th of the month following each quarter. The number of copies required should be intimated by the 15th of April every year.

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CHAPTER - IV ADMINISTRATION Para 401. This section deals with the personnel and administrative matters relating to the office which are generally indicated below: (a) Administration: (i)

Appointment, transfers, promotions, deputations, grant of leave and grant of advances etc. of staff upto Audit Officers/Sr.Audit Officers’ grade.

(ii)

Recruitment of Group ‘D’ and casual labour.

(iii)

Office accommodation.

(iv)

Section Officers’ Grade Examination and other departmental examinations.

(v)

Maintenance of Service Registers and Leave accounts.

(vi)

Preparation of Pension Papers.

(vii)

Maintenance of casual leave account of (a) staff of Administration Section and (b) all Group ‘D’ staff at Secunderabad.

(viii)

Issue of Privilege Passes/PTOs, Duty cheque passes and maintenance of accounts thereof of all the Group ‘A’ & ‘B’ officers, Group ‘C’ and ‘D’ officials of Administration, Co-ordination, EDP, Reports, SAG and Inspection Headquarters Sections. Issue of complimentary passes, school passes, card passes, transfer passes, sports account passes etc. of all the officers and staff at Headquarters.

(ix)

Procurement and upkeep of furniture and office machinery.

(x)

Indenting and supply of Stationery and liveries.

(xi)

Receipt and Despatch.

(xii)

General Maintenance and Upkeep of Office Library.

(b) Bills: (i)

Settlement of personal claims of the members of staff, including officers.

(ii)

Passing of miscellaneous bills.

(iii)

Maintenance of Recovery Registers.

(c) Budget and Control over Expenditure: (i)

Preparation of temporary staff proposals, and Budget proposals.

(ii)

Registers of expenditure and their reconciliation.

(iii)

Submission of Control Statements and other returns to Comptroller and Auditor General of India.

(iv)

Appropriation Accounts relating to the accounts of this office.

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(d) Welfare and Caretaking: Welfare Assistant: To assist the Welfare Officer, a post of Welfare Assistant is operated in the Administration Section. He is entrusted with the following duties. (a) Staff matters: (i)

Assisting the Welfare Officer in looking into the difficulties or grievances of members of the staff and arranging for personal hearing, wherever possible.

(ii)

Providing assistance to members of the staff who become suddenly ill or those who are chronically ill. To assist staff members in securing accommodation facilities in Hospital and to help, in case of need, families of persons on protracted tour.

(iii)

Helping, where essential, the members of the staff in securing admission of their children in schools, colleges and other educational institutions.

(iv)

Assisting staff members in connection with staff welfare, such as Benevolent Fund etc. as may be entrusted from time to time. Liaison with staff Benevolent Fund Committee in providing financial help.

(v)

Initiating action for providing immediate monetary relief to the members of the bereaved family in case of death while in service.

(vi)

Ensuring that payment of settlement dues of retiring officials etc. is effected promptly by the day following the date of retirement by contacting the Accounts Officers concerned and the pension payment orders are also issued expeditiously by the Accounts Officers.

(vii)

Attending to the complaints regarding the delays in the payment of dues to the members of staff and ensure that such payments are effected promptly.

(viii)

Assistance to staff members in arranging for procurement of life-saving drugs.

(ix)

Helping the staff to obtain blood from blood banks in urgent need, promoting donation of blood.

(x)

To attend to representation of Group ‘D’ personnel.

(b) House Keeping: (i)

Cleanliness of office premises and bath-rooms including adequate water supply as also drinking water supply. (ii) Neatness of work place and proper maintenance of furniture. (iii) Removal/weeding and destruction of unwanted records and elimination of congestion in sections. (iv) Adequacy of light and ventilation in the offices. (v) Arranging parking lots for cycle and scooters and ensuring their safety and protection against sun and rain, to the extent possible. (vi) To assist Administration in local purchases by obtaining quotations/tenders and scrutinizing the same. (vii) Supervision and maintenance of the garden. (c) Care-Taking: i.

To ensure proper opening and closing of the office buildings.

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ii.

Marking attendance of the Group ‘D’ staff, their deployment, control and making arrangements during the periods of their leave.

iii.

To attend to the representations of Group ‘D’ personnel regarding the supply of uniforms and other aspects.

iv.

Supervision of the work of maintenance of gardens by the Malis.

v.

Maintenance of the duty rosters of Chowkidars and making arrangements for the work when any of them is suddenly absent.

vi.

Tight control over the day-to-day security arrangements, especially checking the functioning of the Chowkidars outside office hours.

vii.

To look after the cleanliness of the office as a whole.

viii.

Inspection of sections from time to time and suggesting ways for improving the facilities in the sections in regard to furniture, adequacy of space, provision of lighting etc.

ix.

To be in constant touch with the Signal and Telecommunications Department regarding failure of telephones and the Electrical Department for failure of electricity and replacement of defective fans and bulbs.

x.

Maintenance and verification of dead stock items.

xi.

Any other duty in connection with the upkeep of the office as entrusted to him from time to time.

(d) Cultural and Recreational Activities: (i)

To act as liaison in conducting Inter-Audit/Central Government Employees Welfare Coordination Committee Tournaments in various games arranged by the IA&AD/CGEWCC.

(ii)

To encourage players to participate in games.

(iii)

Liaison with the Recreation Club.

(iv)

To help in issuing notices regarding grant of permission to staff for leaving office early to attend sports events and for closing of office as a mark of respect to deceased employees, arranging for condolence meetings and despatch of condolence resolutions to the families of the deceased.

(v)

Any other work that may be entrusted by the Principal Director of Audit.

Para 402 Staff Proposals: The staff proposals should be sent to the Comptroller and Auditor General of India by 25th July every year. To ensure the submission of the proposals by the due date, various sections and Branch Offices should forward their proposals to the Administration section, by 25th June or by any other date prescribed by the Administration Section together with the detailed statistical data, in triplicate. The justification for the existing strength of additional staff required should be supported by data on the basis of monthly average of work done in May, July, January, February and March (excluding March final and supplementary accounts) of the preceding financial year.

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The following general instructions should be strictly adhered to in formulating the proposals: 1.

The prescribed standard time for each item of work has to be adopted.

2.

Items for which no standards are fixed by the Comptroller and Auditor General of India should be exhibited in a separate statement adopting adhoc standards.

3.

The standard per auditor should be taken as 160 hours per month.

4.

The man-hour statistics compiled by the Section Officer/Asstt. Audit Officer of the section concerned should be got checked independently by another Section Officer/Asstt. Audit Officer nominated for the purpose and reviewed by the Branch Officer (Administration). The man-hour statistics for the whole office should be test checked by Asstt. Audit Officer (Internal Audit). A certificate to the effect that the statistical data prepared by the respective sections has been duly re-checked independently by a Section Officer/Asstt. Audit Officer should be given in the letter forwarding the staff proposals to Comptroller and Auditor General of India.

On receipt of the proposals supported by man-hours statistics from the sections and Branch offices, the Administration Section should submit a note to the Principal Director of Audit indicating the particulars of posts proposed for creation and continuance. Where the increase or decrease in work load as compared with the previous year is not more than 5%, detailed staff proposals need not be forwarded to Comptroller and Auditor General of India. However, a certificate indicating that there is no reduction of staff based on work load and as such the existing strength may be allowed to continue may be sent to Comptroller and Auditor General of India. In case the increase in work load in a particular group or groups justifies more staff (and the work load has increased by more than 5% as compared with the previous year) proposals may be sent for sanction of additional staff for this particular group or groups. In all such cases, reasons for variation by more than 5% as compared with the work load during the previous 2 years may be given. Only the posts approved by the Principal Director of Audit for creation and continuance should be included in the staff proposals to be submitted to the Comptroller and Auditor General of India. The proposals should be submitted in four parts. Part I :

Proposals based on the prescribed standard rates of work, taking the group/section as a whole.

Part II :

Proposals pertaining to various sections in respect of which work standards/norms have not been prescribed.

Part III :

Proposals for posts required for casual/seasonal items of work as well as those pertaining to the continuance of the existing posts which have been sanctioned on adhoc basis.

Part IV :

Proposals for additional posts to cater to anticipated increase in work on the basis of average increase in work during the preceding 3 years. The following statements should also be furnished with the staff proposals:

i)

A summary of the proposals in the form enclosed to Comptroller and Auditor General of India’s office circular letter No.1766-BRS/185-78 dated 24th June, 1978.

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ii)

A statement showing the group/section-wise distribution of the regular sanctioned strength (both permanent and temporary) other than casual posts as on 1st March.

iii)

A statement of regular temporary posts for which provision is proposed to be made in Revised Estimates and Budget Estimates in the form enclosed to Comptroller and Auditor General of India’s circular letter No.1393-BRS/87-65 dated 29th June, 1965.

iv)

A statement indicating clearly the additional posts proposed on work standards/norms for the different groups/sections.

v)

Full details of the existing permanent posts held in abeyance together with the justification for their countinued retention or otherwise.

vi)

Full details of supernumerary/shadow/deputation/special deputation reserve posts and the necessity for their retention.

vii)

Staff position statements in Forms 14 and 15 of the Comptroller and Auditor General of India’s Manual of Standing Orders (Administrative) Volume.I showing the total staff provided in the current year’s budget, additional posts proposed for creation during the year and the total requirements for the succeeding year.

viii)

A brief note indicating the availability of qualified persons and how the additional posts proposed for inclusion in the budget/revised estimates are proposed to be filled up during the year.

As the posts of Section Officers are based on the number of posts of Auditors, man-hour statistics for posts of Section Officers need not be submitted. The Administration Section while consolidating the man-hour statistics, will work out the total number of posts of Section Officers for the entire office. In doing so, the yardstick laid down in Comptroller and Auditor General’s letter No.2484-RAI/8-3/64 dated 26th August, 1964 has to be applied. However, if additional posts of Section Officers/Asstt. Audit Officers are required based on separate norms for inspection, Review of contracts and other items of original work to be done by Section Officer/Asstt. Audit Officer, justification supported by detailed statistics should be furnished by the concerned section to the Administration for consolidation. Para 403 Creation of Posts: All proposals for additional establishment should be scrutinised personally by the Head of the Office. Except in most exceptional and urgent cases, no proposals for additional staff or expenditure will be forwarded to the Comptroller and Auditor General during the first six months of the financial year, unless it has been specifically provided for in the Budget Estimates or the extra cost can be definitely met from savings within the budget provision of the office. In that case, it should be clearly stated that the cost involved will be met from savings in the budget. After the first six months of the financial year, proposals may be made if the expenditure is unavoidable. In making these proposals, it must be clearly explained why the provision could not be made in the Budget Estimate and why the expenditure cannot be postponed. Para 404 Sanctions: All sanctions relating to gazetted posts are accorded by the Comptroller and Auditor General. The Principal Director of Audit is empowered to accord sanction for the creation of posts in Group ‘C’ grade which have already been approved unconditionally by the Comptroller and Auditor General for creation during the next year and have been included in the Budget. As provision for such posts will be made only for four months, the delegated powers are to be exercised within these financial limits.

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(Comptroller and Auditor General’s letters No.1267-BRS/60-69 dated 12.5.1970 and No.1269-BRS/60-69 dated 13.5.1970). Sanction for the creation of new temporary posts of Group ‘D’ is also accorded by the Principal Director of Audit. The annual review for conversion of temporary posts into permanent posts may be conducted in the first week of July each year. (Comptroller and Auditor General’s letter No.1224-N.III/64-82/IV dated 28.4.1983). Sanction for the conversion of temporary posts of Group ‘C’ and ‘D’ into permanent ones, is accorded by the Principal Director of Audit, subject to the following conditions: 1.

The posts are required for the work of a permanent nature and have been in existence for a period of not less than three years.

2.

90% of these temporary posts under each category upto Section Officer’s level may be converted into permanent posts.

3.

In case the calculation of posts at 90% result in fraction of post, the formula to be applied is that one half of more than half should be taken as one and less than half should be ignored.

Where the total number of posts which otherwise qualify for conversion into permanent posts exceed 90%, then the posts upto 90% may be converted into permanent posts by the Principal Director of Audit and proposals for the posts exceeding 90% may be sent to the BRS Section of Comptroller and Auditor General’s office for seeking approval to the conversion of temporary posts into permanent ones. The Principal Director of Audit is empowered to sanction continuance of temporary posts upto that of Section Officers and the creation of such posts on a temporary basis for seasonal work and for temporary work of an emergency nature subject to the following conditions. A. 1.

Conditions for the continuance of the posts: That all the circumstances justifying the original sanction by the Comptroller and Auditor General continue to exist. 2. That funds have either been provided in the budget/revised estimates or can be found by valid reappropriation from within the sanctioned budget allotment; and 3. That a report will be submitted to the Comptroller and Auditor General of having extended the posts, with brief reasons for such extension. B. Conditions for the creation of Temporary Posts for seasonal/emergent work of a temporary nature: 1. That all the instructions issued by competent authorities regulating staff composition and standards of work are strictly observed. 2. That funds to meet the cost of the temporary posts can be found by valid appropriation or reappropriation from within the sanctioned budget allotment and that no expenditure is involved in future years. Note: In respect of seasonal temporary posts that may be created by the Principal Director of Audit, there should be specific budget provision while for temporary posts required

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for emergent work it would be sufficient if funds can be found by valid appropriation or reappropriation. A half-yearly report showing the sanctions issued in exercise of these powers should be submitted to the Comptroller and Auditor General in September and March every year (Nil report need not be furnished). C. Creation/Continuance of posts required for clearance of arrears: Sanction of the Comptroller and Auditor General should be obtained for the continuance or creation of posts required for clearance of arrears. (Comptroller and Auditor General’s letter No.2781-NGE.II/59-61 dated 21.9.1961 and Ministry of Finance’s (Government of India) letter No.F.20(7)-EG.I/61 dated 5.9.1961). Para 405 Register of Sanctions: All sanctions for permanent and temporary posts should be recorded in a register, exhibiting therein permanent and temporary posts separately. The register should contain detailed information about the posts, date of sanction, purpose for which sanctioned etc. The entries in the register should be attested by the Audit Officer/Sr. Audit Officer (Administration). Para 406 Sanctioned strength: A statement showing the sanctioned strength and staff in position as on first of every month and another showing the additional regular temporary posts sanctioned by the Principal Director of Audit under his powers as on the last day of the preceding month should be sent to the Comptroller and Auditor General so as to reach him on 10th of every month. Para 407 Recruitment of Auditors, Clerk/Typists and Stenographers: The recruitment of staff in the above cadres in this office is done through Staff Selection Commission, Chennai and Bangalore(in respect of vacancies falling in Karnataka region). The requisitions for the vacancies proposed to be filled in may be sent to Staff Selection Commission, Chennai/Bangalore, as the case may be, according to the periodicity prescribed. The requisition should clearly indicate the requirements both under General and Reserved categories. A note may be kept in the Calendar of Returns maintained in the Administration Section to ensure the timely despatch of the requisition to the Staff Selection Commission. The list of persons recommended for appointment along with the dossiers of each person in original and copies of various certificates submitted by the candidates to the Staff Selection Commission is furnished by the Staff Selection Commission in response to the requisitions placed. On receipt of the dossiers from the Staff Selection Commission, action should be taken to check the original certificates of the candidates regarding their age, educational qualifications, claim regarding membership of SC/ST or an Ex-servicemen, Physically handicapped person etc. and to issue offers of appointment. If some of the candidates do not respond to the offers of appointment sent to them, the vacancies thus remained unfilled may be included in the next requisition to be sent to the Staff Selection Commission. An intimation may also be sent to the Staff Selection Commission about the persons who did not respond to the offers made, returning the dossiers of such candidates to the Commission. The candidates should be medically examined before they are appointed.

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Para 408 Recruitment of Group ‘D’: For filling up of vacancies in Group ‘D’ cadre, requisition should be sent to the local Employment Exchange, in the prescribed format, keeping in view the extant instructions. Minimum educational qualification for recruitment to Group ‘D’ posts(Peons) is a pass in the 8th Standard or equivalent examination. The possession of the minimum educational qualification of 5th standard is desirable for recruitment of Sweepers, Farashas, Chowkidars etc. Applications sponsored by the Employment Exchanges and those who are already working as contingency paid labour in the office, provided they are registered with the Employment Exchange and possess the requisite qualifications for recruitment to the Group ‘D’ cadre should only be considered for appointment. (Authority: (1) Comptroller and Auditor General’s letter No.3193-NGE.III/5283 dated 16.1.1984 (Page 44 of Au/A/VI/2/Vol.III/Orders., (2) Comptroller and Auditor General’s letter No.4561-NGE.III/34-86/Vol.I-KW.3 dated 30.12.1987 (Page 104 of Au/A/Confdl/16/Orders)). Para 409 Relaxation of age limit: The upper age limit for recruitment is 27 years for Group ‘C’ and 25 years for Group ‘D’ staff. The upper age limit may be relaxed upto 3 years in the case of OBC candidates and five years in the case of Scheduled Caste/Scheduled Tribe candidates. (Page 247 of Au/A/16/O/Vol.II, Page 60 of Au/A/16/O/Vol.III, Page 121 of Establishment and Administration Manual, 2000 Edition) The upper age limit in respect of persons who are within the prescribed age limit and placed in the panel may be relaxed upto one year by the appointing authority for their appointment (Para 6.2.5 and 8.2, – Manual of Standing Orders (A) Vol.I). Relaxation of age limit requiring Comptroller and Auditor General’s approval should be referred to him. Para 410 Extension of time limit for joining duty for new recruits: Principal Director of Audit is empowered to grant extension of time to the extent indicated below:(i)

Without any limit where the delay is due to non-completion of medical formalities in respect of the candidate himself. In such cases, the panel seniority will remain intact;

(ii)

In all other cases, extension upto a maximum period of two months beyond the last date indicated in the offer of appointment can be granted. Seniority will be fixed with reference to the date of appointment of the candidate. (Para 6.2.10 of Manual of Standing Orders(Admn) Vol.I)

Para 411. Appointments on Compassionate Grounds: Appointments in Group ‘C’ & ‘D’ Cadres of dependents of Government servants who die in harness (while in service including death by suicide) or who retire on medical grounds, will be considered by the Heads of Departments based on the following criteria:a)

When a Government servant, appointed on regular basis, dies in harness or retires on medical grounds, leaving his family in penury and without any means of livelihood and in the event of there being no other earning member in the family.

b) The appointment on compassionate grounds of a spouse/son/daughter/brother or sister (in the case of unmarried Government servant) of a Government servant will be

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considered even when there is an earning member in the family of the deceased Government servant, if the Principal Director of Audit is satisfied that the grant of concession is justified having regard to the number of dependents, assets and liabilities left by the Government servant, income of the earning member etc. The concession of compassionate appointment in the case of Government servant retired on medical grounds will not, however, be allowed in cases where the Government servant has retired after attaining the age of 55 years for Group ‘C’ staff and 57 years for Group ‘D’ staff. The appointment of spouse/son/daughter etc. of the deceased Government servant could be considered by relaxing the upper age limit wherever found to be necessary. The lower age limit shall, however, in no case be relaxed below 18 years of age. In the matter of exemption from the requirement of passing the typing test, those appointed on compassionate grounds to the post of Clerk/Typist will be governed by the general orders issued in this behalf. In the case of appointment of widows of deceased Government servants as peons, they will be exempted from the requirement of the educational qualifications provided the duties of the post can be satisfactorily performed by her without possessing such educational qualifications. She will be allowed to continue in service even after remarriage. Compassionate appointments will be made upto a maximum of 5% of vacancies falling under direct recruitment quota in Group ‘C’ & ‘D’ cadres and will be adjusted in the recruitment roster against the appropriate category. A person appointed on compassionate grounds should give an undertaking in writing that he/she will maintain properly the other family members who were dependent on the Government servant in question and in case it is proved subsequently that the family members are being neglected or are not being maintained properly by him/her, the appointment may be terminated forthwith. Cases of missing Government servants are also covered under the scheme for compassionate appointment subject to the following conditions:A request for compassionate appointment can be considered only after a lapse of atleast 2 years from the date from which the Government Servant has been missing, provided that (i)

FIR to this effect has been lodged with the Police,

(ii)

the missing person is not traceable, and

(iii)

the competent authority feels that the case is genuine.

(Authority: Dept. of Personnel & Training O.M. No.14014/6/94 – Estt(D) dt.9.10.1998 received under CAG’s Lr.No. 678/N(APP)/18-99/Vol.V dt.14.6.1999). Para 412 Recruitment against Sports Quota: Appointments of meritorious sportsmen can be made by the Principal Director of Audit to any post in Group ‘C’ or Group ‘D’ as per the extant orders of Comptroller and Auditor General of India.

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Recruitment against vacancies reserved for sports quota should be made only after calling for applications from eligible candidates inserting advertisements in the leading Newspapers and Employment News. Clerk/Typists appointed against sports quota would not earn any increment nor become eligible for confirmation and promotion, until he qualifies in the requisite type test. Failure to qualify in the prescribed test will result in adverse consequences as laid down in CAG’s Lr.No.301-N.2/46-87 dated 1.4.1987. Para 413 Offer of appointment and appointment orders: Before appointment, the candidates are required to submit the following documents with the letter of acceptance of offer of appointment. 1.

Certificate of character in the prescribed form from the Head of the Educational Institution last attended or from a Gazetted Officer duly attested by a District Magistrate, Sub-divisional Magistrate or Stipendiary First Class Magistrate. This certificate should have reference to the 2 years immediately preceding.

2.

Attestation form, in the prescribed form duly completed.

3.

SC/ST and OBC certificate from a Magistrate/Tahsildar/Sub-Divisional Officer (In cases of SC/ST and OBC candidates only).

4.

Declaration indicating whether he/she has more than one wife/husband living.

5.

No objection certificate from his/her employer and release order from his/her employer accepting his/her resignation from that service (In cases of employed persons only).

6.

Displaced person certificate from a Gazetted Officer of the Central Government etc. (In cases of displaced persons).

Para 414 Verification of Identity: The identity of the candidate is verified at the time of appointment by comparison of the photograph affixed on the attestation form and the signature in the joining report with that on the original application and other records received from Staff Selection Commission. Para 415 Communal Roster: A communal roster indicating the number of reservations to be made for Scheduled Caste and Scheduled Tribe candidates in respect of recruitment and confirmations should be maintained in accordance with the orders issued by the Government of India from time to time. Reference should be made to the “Brochure on Reservations for Scheduled Castes and Scheduled Tribes in services” issued by the Ministry of Home Affairs. After the introduction of Post based reservation rosters w.e.f. 2.7.1997, the size of the roster shall be kept equal to the sanctioned strength in a cadre. Dereservation is necessary only when a point in the roster proposed to be filled up is earmarked for reserved category for which no eligible candidate from that community is available for promotion. Even if, there is shortfall in the representation of reserved category candidates in a particular cadre, in case the point which is proposed to be filled up falls on an unreserved point, the question of dereservation would not arise. (C&AG’s letters No.1082-NGE(App)/3/97 dt10.9.97, 1285-NGE(App)/3-98 dt.4.12.98 and 276-NGE(App)/3-2000 dt.25.2.2000 – Page Nos.16,86 and 95 of AuA/VI/10/PBR/Vol.I).

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Para 416 Training of Auditors: New recruits will be posted initially to regular sections so that they may gain rudimentary knowledge about the office work. They will be given training for a period of three months. The training classes will be conducted in the forenoons and the trainees will be sent to their respective sections in the afternoons for practical training. The trainees will maintain diaries to record briefly what they learnt during their training period. These diaries will be submitted daily to the Asstt. Audit Officer(Training) who will submit them to the Deputy Director/Director every Monday. The lectures will cover all items of work done in the various sections of the office. As part of the practical training the trainees will be taken to Railway Stations, Engineering Offices, Workshops, Stores Depots and different sections of the Accounts Office to explain to them in detail how the initial records are maintained. Tests will be conducted periodically on each subject and results thereof put up to the Principal Director of Audit. The Asstt. Audit Officer(Training) should indicate in his weekly diary the progress of training with reference to: I. Syllabus covered, II. Tests held, III. Items covered in practical training, and IV. General remarks on the receptivity of the trainees. Cases of trainees showing want of interest or progress in work should be put up confidentially to Deputy Director/Director/ Principal Director of Audit. Training should be imparted to new recruits and promotees before they complete one year’s service in Auditor’s cadre and before they become eligible to appear in the Departmental Examination for Auditors. (Comptroller and Auditor General’s letter No.1933-NGE.II/100-67 dated 24.9.1968). The Clerk/Typists promoted to Auditors’ cadre should also be given suitable training for a period of six weeks in not more than two batches in a year. (Comptroller and Auditor General’s letter No.54-NGE.II/100-67 dated 8.1.1968) Para 417 Departmental Examination for Auditors: All direct recruits as well as Clerks/Typists promoted as Auditors should pass the Departmental Examination which is a pre-requisite for confirmation and promotion as Senior Auditor. The Examination will be held twice a YEAR IN February and August each year. Proposals should be put up to Principal Director of Audit in January and July for nominating the Officers for setting all the 3 question papers. The dates of the examination will be determined by the Principal Director of Audit. The Syllabus for the examination is given below: Paper Paper I - Railway Audit

Duration 2½ Hours

Maximum Marks 100

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Paper II - General Rules and Procedure

2½ Hours

100

Paper III - Revenue Audit (Railways)

3 Hours

100

Note: Candidates will be declared to have passed if they obtain 40% of marks in each of the papers. A candidate who fails to pass the examination but obtains in any paper atleast 50% of marks will be exempted from appearing again in that subject. (Comptroller and Auditor General’s letter No.301-Exam./22-84 dated 3.4.1984 and 3-Exam/160-86 dated 2.1.1987) The honoraria admissible to the examiners are as under: 1. For setting the 3 hours paper question papers Less than 3 hours paper

Rs.160/-

2. For Valuation

3 hours paper

Rs.3.30 per paper

2 ½ hours paper

Rs.2.80 per paper

2 hours or less

Rs.2.20 per paper

Rs.130/-

If the amount of honorarium computed on the above basis is less than Rs.10/-, an amount of Rs.10/- will be granted as Honorarium. (Authority: 263-NI/48-84 dated 13.2.89 - C.S. No.123 dt.13.12.89 to Para 313.A to MSO(A) Vol.I Second Edition) Auditors who have rendered atleast one year’s service as on 1st February and 1 August are eligible to appear in the Examination. Auditors transferred from other offices who have already passed the examination in their offices need not sit for the examination again. The Principal Director of Audit may at his discretion condone deficiencies in the prescribed service upto a limit not exceeding 60 days as on 1st day of the month in which the examination is held. st

(CAG’s Lr.No.527-Exams/20-84/IV dt.20.8.91) The Auditors and promotee Clerk/Typists are allowed six chances in six consecutive examinations to pass the examination. Absence in any examination for whatever reasons will also be taken as chance availed. Failure to pass the Departmental Examination within the stipulated time/number of chances will entail discharge from service in the case of direct recruits and reversion to Clerk/Typists in the case of promotees. The reverted Clerk/Typist will have three more chances to clear this examination within two years of the reversion. Note: Two additional chances for appearing at the Departmental Examination can be considered on merit alone for those who have exhausted all the six chances but could not avail of one or two chances due to genuine reasons like national calamity, compelling family circumstances, illness of self and family and any other such circumstances considered by the Head of the Department to be genuine. (Para 9.4 to 9.4.2 of Manual of Standing Orders(Admn) Vol.I)

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The promotee Clerk/Typist who was reverted to the post of Clerk/Typist for having not passed the Departmental Examination within the stipulated number of chances will be considered for re-promotion, with others, only after completion of 5 (five) years from the date of reversion. While issuing the orders of promotion, this condition shall invariably be incorporated in the promotion order itself. (C&AG’s letter No.654-NGE/App/53-90 dated 17.6.98 Page No.16 of AuA/Confdl/O/15 Vol.I) (Para 57 of Railway Audit Manual and Paras 287 and 288 - Manual of Standing Orders(Admn) Vol.I and M.I.R. 4.3.1., 4.3.2. and 4.3.3.) Para 418 Section Officer’s Service: Appointments to the cadre of Section Officers are made mainly by promotion of Sr. Auditors of the Railway Audit Offices who have passed the Section Officer’s Grade Examination. Para 419. Section Officers’ Grade Examination: Section Officers’ Grade Examination is held once a year, on the dates fixed by the Comptroller and Auditor General. Persons who have put in a minimum of three years service in one or more of the following capacities will be eligible to sit for the examination. i)

As Clerk/Typist, Auditor, in an Audit Office.

ii)

As a Stenographer in an Audit Office.

The Head of Offices may recommend to the Comptroller and Auditor General for consideration suitable and deserving cases for condonation of deficiency, not exceeding 2 months in each case in the minimum qualifying service of three years required for eligibility to appear in the examination. The maximum number of chances for Part I of the Section Officer’s Grade Examination will ordinarily be 6. Indefinite number of chances in Part I shall, however, be allowed to those candidates who secure 30% marks in aggregate in any one of the last two chances availed of by them. There will be no limit to the number of chances for Part II of the Examination. Para 420. Selection and training of candidates for Section Officer’s Grade Examination: After the results of the Section Officer’s Grade Examination are announced, names of intending candidates for the next examination should be obtained in the prescribed proforma. A Preliminary test will be conducted for those who are appearing for the first time to select the candidates who will be allowed to sit for the examination. The test will consist of two papers each of three hours duration - one on “General English/General Hindi and Constitution of India” and the other on “Omnibus Paper (without books)” covering the subjects on Establishment and Expenditure, prescribed for Part I of Section Officer’s Grade Examination. Candidates qualified in the Preliminary Test but not sitting for the examination should again have to pass the Preliminary test if he is to appear for the examination in the subsequent year.

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Lectures will be given to the Section Officer’s Grade Examination candidates for Part I and II Examinations by Asstt. Audit Officers and Audit Officers/Sr.Audit Officers nominated by the Principal Director of Audit. The maximum number of lectures to be given is 10 in the case of ‘Précis and Draft’ and 12 in the case of other subjects. The lectures should be of not less than 75 minutes duration and should be given within the office hours. Honorarium at the rates prescribed by the Comptroller and Auditor General will be paid to the lecturers. Para 421 Statement of candidates for Section Officer’s Grade Examination: A list of candidates eligible for Section Officer’s Grade Examination Part I and II, approved by the Principal Director of Audit, will be sent in the form prescribed in Para 9.2.3 of the Manual of Standing Orders(Admn.) Vol.I so as to reach Comptroller and Auditor General’s Office by 15th August each year. An indication whether a particular candidate belongs to Scheduled Caste or Scheduled Tribe should be given. The following information should also be indicated invariably in the list of candidates. In the case of a candidate who has secured the concession of another chance in Part I of the Section Officer’s Grade Examination, by virtue of his having secured 30% of marks in the aggregate in any one of the last two chances, actually availed of by him, the month and year of that examination, the index number then allotted and the marks obtained should be indicated against his name in the ‘Remarks’ column of the statement. The list compiled by the Administration Section should be checked in detail by a Section Officer/Asstt. Audit Officer and an Audit Officer/Sr.Audit Officer other than those who are responsible for the compilation. As soon as an advice is received from the Comptroller and Auditor General about the programme of the examination and the index numbers allotted to the candidates, the candidates should be notified and a copy of the instructions also supplied to them. Candidates who secure exemption marks in two subjects in Part I will be allowed to take the third subject along with Part II Examination. Candidates who have passed Group I of the final examination of I.C.W.A. will be exempted from Accountancy paper in Part II. Note: For the subject ‘Open-line Revenue’, I.R.C.A. Coaching and Goods Tariff and General Classification of goods in force on 1st April preceding the examination will be the test books. (Comptroller and Auditor General’s letter No.389-Exam/151-67 dated 25.7.1968). Para 422 Withdrawal from the examination: Candidates who wish to withdraw from the examination, whether Part I or Part II, should apply for permission to do so before the lists of eligible candidates are sent to Comptroller and Auditor General i.e. 15th August. Applications received afterwards will not be considered unless there are very compelling reasons in support of the request. Permission to withdraw one’s name should be applied for in any case before the commencement of the examination. Para 423 Conduct of the Examination: The examination will be conducted by the I.A.&.A.S. Officers nominated by Comptroller and Auditor General. A list showing the particulars of candidates who have been allowed by the Principal Director of Audit to withdraw from the examination should be forwarded to Comptroller and Auditor General after the examination is over.

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Para 424 Grant of leave to Section Officer’s Grade Examination candidates for preparation: Leave may be granted to Section Officer’s Grade Examination candidates for preparation subject to administrative convenience and with due regard to the principles enunciated in S.R.232. Para 425 Pass and Travelling Allowance to Section Officer’s Grade Examination Candidates: The Section Officer’s Grade Examination is treated as an obligatory examination for the purpose of Travelling Allowance. Journeys performed in connection with the examination are treated as journeys on tour. No daily allowance will, however, be paid for the days of halt at the place of examination. Travelling Allowance for the journeys may be given only for the first two attempts of a particular examination. (Comptroller and Auditor General’s letter No.Admn/15-44/56/10638 dated 18.11.1960) Para 426 Seniority in Section Officer’s Cadre: The promotion of Section Officer’s Grade Examination passed Auditors is based on the recommendations of the Departmental Promotion Committee constituted for the purpose, taking into account the extant orders on communal roster. Para 427. Revenue Audit Examination for Section Officers/Asstt. Audit Officers: A Departmental examination called “Revenue Audit Examination for Section Officers” of the Railway Audit Department has been introduced from the year 1974. The examination will consist of 2 papers each of 3 hours duration and carrying 150 marks each. (Paper I deals with Income Tax and Paper II deals with Revenue Receipts of the Department). The minimum marks required for a pass in the examination will be 40% in each paper but candidates who obtain 60% or more marks in any paper will be exempted from appearing in that paper in the subsequent examination. The examination will be held once a year on the dates to be determined by the Comptroller and Auditor General. (Comptroller and Auditor General’s letter Nos.902-Exam/102-72 dated 31.10.1973, 266-Exam/102-72 dated 3.6.1974 and 170-Exam/8-1985 dated 18.3.1987) Para 428 Conditions of eligibility to sit for the Exam: The completion of the prescribed course of training will be an essential condition for eligibility for appearing in the examination. Section Officer’s Grade Examination passed Auditors who have not been promoted and those officiating as Section Officers in purely temporary leave vacancies will not be allowed to sit for this examination. (Comptroller and Auditor General’s letter Nos.266-Exam/102-72 dated 3.6.1974 and 372-Exam/102-72 (III) dated 10.7.1974) Para 429. Maximum Number of Chances: The maximum number of chances allowed for passing this examination will be 6 (six) without any age restriction. Permission accorded to appear in any particular examination shall count as one chance irrespective of the fact whether the candidate actually sits for the examination or not, unless he is specifically allowed by the Head of Office to withdraw his candidature. Such withdrawal shall not be allowed unless the circumstances of the case fully justify the concession. Permission to withdraw one’s candidature should be applied for as early as possible and in any case before the commencement of the examination.

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(Comptroller and Auditor General’s letter No.1115-Exam/183-80 dated 14.10.1980 and Para 9.3.3. of Manual of Standing Orders(Admn.) Vol.I) Para 430 Incentive to candidates passing the Examination: Such of those Section Officers/Asstt. Audit Officers who pass the Revenue Audit Examination will be allowed one advance increment in the Section Officer/Asstt. Audit Officer’s scale (as the case may be) in which the pay is drawn at the time of writing the examination taking effect from the day following the last day of the examination. The next increment will accrue on the normal date of increment of each official. In the case of Asstt. Audit Officers passing this examination, the advance increment has to be sanctioned by the Comptroller and Auditor General. (C&AG’s letter No.920-Exam/102.72 dated 31.10.73 and No.4093-GE.II/21786 Vol.II dated 4.12.87) All the departmental officials, on passing intermediate and final examination of I.C.W.A. are eligible for lump sum incentive of Rs.4,000/- and Rs.8,000/- respectively. (Department of Personnel and Training O.M. No.1/2/89-Estt.(Pay-I) dt.9.4.99 received under CAG’s No.184-Audit(Rules)/86-90/IV-99(41) dt.13.5.99) Para 431 Travelling Allowance to the candidates for training: The candidates who have to proceed for the training to a center at a place other than their Headquarters will be entitled to Travelling Allowance as on tour and the period of training will be treated as duty. (Comptroller and Auditor General’s letter No.484-Rev-Rec(iv)/29-71 dated 27.6.1974) Para 432 Training of candidates: The Section Officers/Asstt. Audit Officers who desire to appear in the examination would be given intensified training. The training will be in the form of concentrated full time course spread over a period of 10 working days consisting of 25 lectures. Training will be arranged by the Accountant General (Audit-I), Andhra Pradesh, Hyderabad. Para 433 Syllabus for examination: Syllabus for examination is given in Manual of Standing Orders (Admn.) Vol.I. The candidates will have to equip themselves with the copies of codes etc. prescribed in the syllabus both for training as well as for reference in the examination. Para 434 Statement of candidates permitted to appear in the Examination: Particulars of candidates permitted to appear in the examination should be intimated to Comptroller and Auditor General in Form No.9 given in Manual of Standing Orders(Admn.) Vol.I. (Para 9.3.2. of Manual of Standing Orders(Admn.) Vol.I). Immediately after the close of the examination, a certificate to the effect that all the candidates who were allowed to appear in the examination had completed the prescribed course of training should be furnished to Comptroller and Auditor General Para 435 Departmental Examination for promotion as Stenographer: A Limited Departmental Competitive Examination for Clerk/Typists for promotion as Stenographers will be held once a year in the month of August. Any permanent or temporary regularly appointed Clerk/Typist who has completed 2 years continuous service as Clerk/Typist in the

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I.A.&.A.D. and who has passed the Matriculation examination will be eligible to appear in the examination. The crucial date to determine the eligibility will be the first day of the month in which the examination is held. There is no limit on the number of chances which may be availed of by a candidate. The examination consist of 2 parts viz. Part ‘A’ - written test and Part ‘B’ - Shorthand test. The subject of the examination, time allowed, the maximum marks for each subject and the standard and the syllabus will be as follows: Part ‘A’ - Written Test: Subject

Time allowed

Maximum marks

Paper I

General English

1 hour

75

Paper II

Essay

1 hour

50

Paper III

General Knowledge

1 hour

75

(Minimum qualifying marks will be 40% in each of the papers). Part ‘B’ : Shorthand test in English/Hindi

10 Minutes passage

200 marks

(80 words per minute) (Minimum qualifying marks will be 55%). (Comptroller and Auditor General’s letter Nos.186-190/N.2/40.84 dated 6.3.1984, 1259-Exam/21-84 dated September 1984 and Para 9.5 to 9.5.4 of Manual of Standing Orders(Admn.) Vol.I). Para 436 Limited Departmental Competitive Examination for Matriculate Group ‘D’ staff for promotion as Clerk/Typists: (i) Group ‘D’ staff who are Matriculates and who have put in 3 years continuous service on the first day of the month in which the examination is held are eligible to appear for this examination. The examination will be held once in a year in September and will consist of 3 written papers on: Subject

Duration

Maximum marks

1.

English/Hindi

2 hours

100

2.

Arithmetic and Tabulation

2 hours

100

3.

General Knowledge and Office Procedure

1 hour

100

(ii) The pass marks required is 40% in each of the 3 papers. The number of chances shall be limitless. The candidates who pass the written papers of the examination become eligible for promotion as Clerks/Typists. Candidates securing 45% marks in any paper(s) would be exempted from appearing in that paper(s) in subsequent examinations. (Comptroller and Auditor General’s letters No.341-Exam/161-83 dated 30.4.1984, No.691-Exam/161-83 dated 5.7.1984, 833-Exam/161-83 dated 23.7.1986, No.242Exam/161-83 Vol.II dated 23.4.1987 and Para No.9.6 of Manual of Standing Orders (Admn.) Vol.I)

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(iii) Failure to qualify in the type test by Clerk/Typist - adverse effects: Promotee Group ‘D’ should not be reverted for failure to qualify in the requisite type test. However, such of the candidates who do not qualify in the prescribed type test would not earn any increments nor become eligible for confirmation and promotion. They are also not eligible to appear at any departmental examination on passing of which promotion is given, i.e. Section Officers’ Grade Examination etc. They are however, eligible for exemption from passing the type test on their reaching the age of 45 years. On passing the type test, their increments held over will be released but arrears prior to passing are not payable. If any period of probation is prescribed in the post of Clerk/Typist, such period of probation cannot be deemed to have been successfully concluded, till the type test is passed. In cases where exemption from type test is granted either on reaching the age of 45 years or on medical certificates, the above mentioned disabilities due to non-passing of type test will cease to be operative on such exemptions. (Comptroller and Auditor General’s letter No.301-N.2/46.87 dated 1.4.1987) Para 437 Promotion of Auditors as Senior Auditors: Auditors in the Grade of Rs.4000100-6000 who have completed 3 years of regular service in the grade as on 1st October and have passed the Departmental Examination for Auditors will be eligible for promotion as Sr.Auditors. (Comptroller and Auditor General’s letter No.718-N.2/41-84 dated 23.7.1984) Para 438 Promotion of Clerk/Typists as Auditors: The posts in the Auditors’ cadre shall be filled as follows: a) 40% of posts by promotion of Clerks with 5 years regular service in the grade on seniority basis subject to rejection of unfit; and b) 10% of posts by promotion from the following: (i)

Clerks on passing Part I of S.O.G.E.

(ii)

Graduate clerks with 3 years regular service in the grade on passing the Departmental Examination for Auditors; and

(iii)

Graduate Group ‘D’ officials with 3 years regular service in the grade on passing the Departmental Examination for Auditors.

(Authority: Amendment of Recruitment Rules received vide C&AG’s letter No.72-NGE(App)/40-99 dt.31.5.2000 - Page 78 of AuA/16/O/Vol.III) Seniority of Clerk/Typist transferred from other offices at their own request will be the gradation list seniority for the purpose of promotion as Auditor. The promoted Clerk/Typist will have to pass the Departmental Examination for Auditors within two years of his promotion but if an examination is to be held within 90 days of the promotion, he may not take it, but may instead take the six consecutive examinations held immediately thereafter. If he does not pass the examination within the

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number of chances allowed, he will be reverted and the seniority again for promotion is regulated from the date of reversion. Clerk/Typists who came out successful in the Section Officer’s Grade Part I Examination may be appointed as Auditors against the direct recruitment vacancies immediately available thereafter. For this purpose, the requirements of age and minimum educational qualifications prescribed for appointment of Auditors may be deemed to have been relaxed in their favour. On their appointment as Auditors, such Clerk/Typists will be exempted from passing the Departmental Examination and their pay will be fixed under the normal rules of pay fixation. (Comptroller and Auditor General’s letter No.2165-NGE.III/54-68 dated 30.9.1969 - Page No.115 of file No.AuA/Con/15). Para 439 Promotion of Group ‘D’ employees: (i) Promotions of Peons to the cadre of Daftry are made on the basis of seniority-cum-fitness only. Peons with a minimum of 3 years of regular service in the grade will be eligible for consideration for promotion as Daftry/Jamadar. (Comptroller and Auditor General’s letter No.1019-NGE.II/90-67 dated 17.7.1967 of AuA/Con/15, No.1452-N.2/39-85 dated 18.12.1985 of AuA/V/46/Orders and No.197-N.2/49-87 dated 27.2.1987) (ii) Any Group ‘D’ employee with minimum educational qualification of 8th Standard and 7 years of service as regular Group ‘D’ will be eligible for appointment as Record Keeper (Group ‘C’). The appointment will be on seniority-cum-fitness basis. (Comptroller and Auditor General’s letter No.3945-N.2/74-83 dated 16.12.1983 and 105-N.III/1-82 dated 4.2.1988) 25% of the regular posts of the Record Keepers will be in functional Selection Grade (Rs.3050-75-3950-80-4590) and Record Keepers with a minimum of 3 years of regular service will be eligible for promotion to this grade on seniority-cum-fitness basis. (C&AG’s letter No.105-N-2/1-88 dated 4.2.1988 and No.261-N.2/83-90 dated 27.7.1991 - Pages 24 and 35 of AuA/V/66/O/Vol.I) (iii) 10% of the vacancies in the cadre of Clerk/Typists occurring in a recruitment year shall be filled according to the 20-point roster by the Matriculate Group ‘D’ employees who have completed 3 years of service as Group ‘D’ and passed the Limited Departmental Competitive Examination. (Comptroller and Auditor General’s letter No.E.2-OSD(P)/73 dated 18.12.1973 - AuA/V/46/Orders) Matriculate Group ‘D’ employees who have completed 3 years regular service on the 1st day of the month in which the examination is held are eligible for promotion against 5% vacancies in the cadre of Clerk/Typists on seniority basis. The promotee Matriculate Group ‘D’ will have to pass the requisite type test. The conditions prescribed in Para 435 (Official Manual) will apply mutatis mutandis in case the candidates who fail to pass the type test.

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{(1) Comptroller and Auditor General’s letter No.290-N.2/46-87 dated 27.3.1987 - Page 290 of AuA/V/46/Ord. Vol.I); (2) CAG’s letter No.242-Exam/161-83/Vol.II dt.23.4.87; (3) CAG’s letter No.301-N.2/46-87 dt.1.4.87 (Page.294)} (iv) Clerk/Typists including those promoted from Group ‘D’ cadre are not allowed increment unless they pass the requisite type test in English. (Please see Para 436(iii) - Office Manual) Para 440 Officiating promotions in short term vacancies: Short term vacancies arising may be filled in the normal manner in cases where the duration of the vacancy exceeds 30 days. This limit will apply irrespective of whether it is a single vacancy or part of a chain of vacancies. Officiating promotions in vacancies of 30 days duration or less may be made only in very exceptional circumstances with the prior personal approval of the Head of Department. (Ministry of Finance O.M.No.F.10(22)-E(Coord)/74 dated 18.6.1975 Page 144 of AuA/VI/2 Vol.II/Orders) Para 441 Seniority: (1) The inter-se seniority of direct recruits will be regulated in accordance with the position assigned to them by Staff Selection Commission. If a new recruit does not join within the prescribed period, the seniority of such candidates will be reckoned on joining duty as mentioned in Para 410(Office Manual). (2) The seniority of Auditors who are reverted as Clerk/Typists on account of their failure to pass the Departmental Examination and who are subsequently promoted as Auditors will be fixed with reference to the date of their re-promotion to the Auditors’ cadre. No weightage for past service in the Auditors’ cadre will be given to such Auditors for the purpose of seniority. (3) The seniority of the persons promoted from the Clerk/Typists cadre to the Auditors’ cadre should be determined with reference to the date of promotion. However, in cases of advance promotions, the seniority will be determined as if they had been promoted against the appropriate points in the register. (Comptroller and Auditor General’s letter No.D.O.F.3-OSD(P)73 dated 5.3.72 and No.776.F.3.OSD(P)/73 dated 23.4.73 (48) of AuA/V/46/Order) (4) When promoted Clerk/Typists who fail to pass Departmental Examination are reverted, their total service as Auditor and Clerk/Typist will be counted for seniority of Clerk/Typists. (Comptroller and Auditor General’s letter No.1867-NGE.III/32-68 dated 5.9.1968) (5) In the case of mutual transfers, both the staff transferred will be assigned seniority for the lower of the two lengths of service. Para 442 Confirmation: A revised procedure for confirmation, retention of lien etc. has been introduced with effect from 1.4.88 and accordingly confirmation will be made only once in the service of the official, in the entry grade without linking the confirmation with

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availability of permanent vacancy in that grade after successful completion of probation of 2 years and passing the departmental examination in case of Auditors. Confirmation in the grade to which initially recruited will be placed before DPC and a specific order of confirmation will be issued when the case is cleared from all angles. As no officer otherwise eligible will have to wait for confirmation pending availability of permanent vacancy, the need for following the procedure for declaring a person quasi-permanent ceases to exist. The benefits of having a lien in a grade will be enjoyed by all officers who are confirmed in the grade of entry or who have been promoted to a higher post declared as having completed the probation where prescribed or those who have been promoted on regular basis to a higher post where no probation is prescribed under Rules, as the case may be. The present distinction between permanent and temporary employees for grant of pension and pensionary benefits will cease to exist. The need for reservation at the time of confirmation in posts and services filled by direct recruitment will cease to exist, as everyone who is eligible for confirmation will be confirmed. (Authority: C&AG’s No.2536-NGE.III/43-88 dt.20.7.88 NGE Group Circular No.N/56/1988) Para 443 Transfers: The staff are liable for transfer to any of the units including the Branch offices. No member of the staff, including the Audit Officer/Sr. Audit Officer should normally be kept in the same group beyond five years. Retention in a particular group beyond five years will be allowed only in exceptional circumstances and with the specific orders of the Head of Department. (Comptroller and Auditor General’s letter No.215-PC(COORD)/3-87 dated 17.11.1987 – Page 211 of AuA/V/55/Vol.II). By the due date prescribed, the sections should furnish an annual return to Administration section indicating the section and the periods during which the staff have worked during the year under report. A register called “Staff Movement Register” showing all the particulars regarding movement of staff should be maintained in the Administration Section. Para 444 Applications for employment elsewhere: Applications for posts under Central or State Government and Statutory Corporations should be sent to the Administration Section for transmission to the prospective employer. No application should be sent direct. Applications other than those in response to advertisements in newspapers or circulars from Comptroller and Auditor General’s office will not be forwarded. Applications from purely temporary employees may be forwarded unless there are compelling grounds of public interest for withholding them. In the case of permanent

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employees, however, only four opportunities in a year may be given to apply in response to advertisements, unless in the interest of public service, they have to be withheld. A written undertaking accepting the conditions stipulated in the Government of India, Ministry of Home Affairs O.M.No.70/62/62-Ests.(A) dated 22.1.1966 should be obtained before forwarding applications from permanent Government servants for posts in Public Sector Undertakings/Autonomous Semi-Government Organisations. The foreign employer should also be informed of this. Quasi-permanent employees appointed to such posts should be treated as on foreign service for a period of two years and given the same treatment as permanent employees. Before forwarding the applications of temporary employees for posts in public sector undertakings/organisations, a written undertaking to the effect that in the event of selection to the posts applied for they will resign from Government service, should be obtained from them. {(1) Ministry of Home Affairs, O.M. No.70/62/62-Ests.(A) of 22.1.66; (2) Department of Personnel and Training O.M. No.28016/5/85-Estt(C) dt.31.1.86, and No.4(12)85-P&PW dated 31.3.87 as amended from time to time} Para 445 Compulsory retirement: Extension of service and Refused Leave: The provisions of FR.56 regarding the age of superannuation are applicable to staff of this office. In terms of FR(56)(J) appropriate authority, if it is of the opinion that it is in the public interest to do so, have the absolute right to retire any government servant by giving him notice of not less than three months in writing or three months’ pay and allowances in lieu of such notice. The power to relax three months notice period vests in the President. (Comptroller and Auditor General’s letter No.1603-NGE.I/313-65 dated 29.7.1967) (i)

If he is in Group ‘A’ or Group ‘B’ service or post in a substantive or temporary capacity and had entered Government service before attaining the age of thirty five years, after he has attained the age of fifty years.

(ii)

In any other case, after he has attained the age of fifty five years.

This proviso will not apply to Group ‘D’ Government servants, who entered Government Service on or before 23rd July, 1966. For the purpose of application of Fundamental Rule 56(J) it is necessary to determine if retention of Government servants beyond the age of 55 years will be in public interest. For this purpose, the following procedure has been laid down. (Ministry of Home Affairs O.M. No.33/15/66-Estts (A) dated 10.11.1966) 1. Case of a government servant should be reviewed six months before he attains the age of 55 years and decision taken thereon by the appropriate authority. 2. Once a decision is taken by the appropriate authority to retain a government servant beyond the age of fifty five years in public interest, the employees concerned will continue in service automatically till he attains the age of compulsory retirement. If,

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however the appropriate authority subsequently considers that further retention of the government servant will not be in public interest, that authority may take necessary action to serve three months notice in terms of clause (J) of Fundamental Rule 56. No proposal for extension of service/re-employment beyond the age of superannuation will, ordinarily, be considered. Detailed instructions regarding grant of extension of service (reemployment) contained in Ministry of Home Affairs O.M.No.26/11/68 Ests.(B) dated 17th June, 1969 should be borne in mind in recommending extension of service to staff. All proposals for extension of service should be submitted to the Comptroller and Auditor General. (CAG’s letter No.75-NGEI/150-67(I) dated 10.1.1968) Para 446 Pension: The payment of superannuation pension should in all cases commence on the first of the month in which they are due. The Head of Office responsible for preparing the pension papers will initiate the pension case 2 years before the date of retirement of the Government servant. Deficiencies, imperfections and omissions in the Service Book should be removed and the service book completed in good time, at any rate, not later than 8 months in advance of the date of retirement of the Government servant. The actual work of preparation of pension papers should be taken up 8 months before the date of retirement. It shall be the responsibility of the officer maintaining the Service Registers to make annual verification and also to complete and certify the service book in respect of previous service on the 25th year of service or 5 years before the retirement and communicate to the Government servant the period of qualifying service so determined in consultation with the Principal Director of Audit, Eastern Railway. (Ministry of Finance O.M.No.F.11(3)-EV(A)/76 dated 28.2.1976) The progress of pension cases should be watched by means of the following monthly, quarterly and half-yearly statements. 1. Statement No1: This is a monthly statement and should cover cases of all government servants due to retire within the succeeding 8 months. It will indicate the progress of the cases with reference to various stages and this should be submitted to Principal Director of Audit by 5th of each month. 2. Statement No.2: This statement covers the cases of those who became due for retirement in the preceding month and this should be submitted to Principal Director of Audit by 3rd of each month. 3. Statement No.3: This is a quarterly statement and is meant to cover provisional pension and/or provisional Death-cum-retirement-gratuity cases which are to be made final after the expiry of the period of 6 months. This should be submitted to Principal Director of Audit by 10th of April, July, October and January for the quarters ending 31st March, 30th June, 30th September and 31st December respectively. 4. Statement No.4: This is a quarterly statement and should indicate the details of the presumptions made in favour of the retired Government servants because of incomplete/improper maintenance of Service Registers. This should be submitted to Principal Director of Audit by 15th of April, July, October and January for the quarters ending 31st March, 30th June, 30th September and 31st December respectively. In addition to the above, a six monthly report (Statement No.5) showing the particulars of Government servants in whose cases pension was not determined within 6

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months of the retirement should be submitted to Principal Director of Audit by 15th July and January for the half-year ending 30th June and 31st December. (CAG’s letter No.414-NGE.I/107-1976 dated 24.2.77) The Head of Office shall undertake the work of preparation of pension papers in Form No.7, 2 years before the date of retirement and obtain particulars in Form No.5 from the Government servant 8 months before the retirement. The Head of Office shall complete Part I of Form No.7 not later than 6 months prior to the date of retirement of the Government servant. Thereafter, the following documents shall be sent to Principal Director of Audit, Eastern Railway with the pension case of every non-gazetted and Group ‘B’ officer for verification. 1.

Details of service and the order of the pension sanctioning authority.

2.

Medical certificate for invalidation (if the claim is for invalid pension)

3.

Service Book.

4.

Statement of average emoluments, reckoning for pension.

5.

Form No.5

6.

Form No.7

7.

Statement showing calculation of pension, DCRG and Family pension.

In respect of Group ‘A’ officers, the pension papers should be processed as indicated above and sent to Pay and Accounts Officer, Office of the Accountant General, Andhra Pradesh, Hyderabad, for verification and arranging payment. In dealing with pension cases, the procedure laid down in Chapter.VIII of CCS (Pension) Rules, 1972 may be kept in view. Para 447 Family Pension: Family pension is also verified and sanctioned along with the superannuation pension and Death-cum-retirement gratuity and communicated to the Accounts Officer. Para 448 Nomination: Every employee shall execute nominations for Family Pension and Death-cum-retirement gratuity. The nominations for Death-cum-retirement gratuity should be executed on completion of five years of qualifying service. These nominations are scrutinised and put up to the Deputy Director (Head of the Office) for counter-signature. Thereafter, necessary entries regarding the date of nomination for family pension/death-cumretirement gratuity are made in the Service Register of the individual and lodged in the confidential file kept in the custody of the Audit Officer/Sr. Audit Officer(Administration). A remark that the nomination is kept in the confidential file with the Audit Officer/Sr. Audit Officer is also to be made in the Service Register. Acknowledgement shall also be given to the individual concerned. In the case of employees who have elected to be governed by the Family Pension Scheme, 1964, it is necessary to obtain particulars of composition of the family and separate nominations for Family Pension are not necessary. These particulars must be kept in the Service Register of the employee. Para 449. Settlement bills: When an employee retires from Government service, resigns or is relieved on transfer to some other department or is retrenched or dismissed from service,

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the pay and allowances due to him for the part of the wage period ending with the date on which such event occurs should be drawn in a separate pay bill, marked prominently “settlement pay-bill”. Before drawing such a bill, it should be ensured that there are no dues outstanding against the employee. Para 450 Budget and Revised Estimates: The instructions contained in Paras 72 to 78 – Railway Audit Manual and Chapter IX of Comptroller and Auditor General’s Manual of Standing Orders may be seen. The Budget Estimates and Revised Estimates in respect of Group ‘A’, ‘B’, ‘C’ and ‘D’ posts and office expenses shall be prepared in the following forms:1. Group ‘B’/Non-Gazetted Establishment

-

Forms ‘A’ to ‘D’

2. Group ‘A’ Officers

-

Forms ‘E’ to ‘H’

While formulating the monetary estimates, the following instructions may be kept in view, besides those issued from time to time. The provision for men-in-position should be accurately estimated. Provision for those posts out of the vacant ones which can be filled-in during the remaining part of the year should only be proposed. Provision for additional posts should not be made in the estimates. provision for additional posts under the head-“Travel Expenses” should be made.

No

The requirement under the head “Salaries” should be computed with reference to actuals for the first 6 months and under other heads on the basis of actuals for the 5 months. Provision for the purchase of items like Accounting Machines, Staff Car, Water Coolers, Grants-in-aid etc. should be separately indicated. Provision for Cash Awards to employees under the Hindi Teaching Scheme may be provided under the sub-head “Other Charges” and shown distinctly. Provision for special construction works and ancillary requirements should be made under the sub-head “minor works”. Explanations for variations should invariably be furnished in the estimates. The estimate of funds required under the head “salaries” in the Budget will be framed on the basis of trends over the preceding 3 years taking into account other relevant factors like changes in rates of pay, allowances, number of posts and their filling and economy instructions issued from time to time. With effect from 1987-88 provision for “Festival Advances” should be made under salaries. The provision will be on a net basis i.e. net of recoveries under the head “salaries”. (CAG’s letter No.2013-BRS/42-2000(Email) dt.10.9.2000 Circular No.6BRS/2000) Para 451 Estimates for Deposits and Loans, Pensionary charges: See Paras 76 and 77 of Railway Audit Manual.

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REGISTERS REGISTER OF CONTINGENT EXPENDITURE

REGISTER OF EXPENDITURE

REGISTER OF LIABILITIES Para 452. Register of Expenditure: All Pay, Travelling Allowance and other bills relating to claims of staff for each month classified under the detailed heads of account should be posted in this register. The bills should be serially numbered and entered in the register before the fair copy of the bills are put up for signature of the Branch Officer. (General Financial Rules-66) Para 453 Register of Contingent Expenditure: This register is intended to watch the adjustments of debits pertaining to contingent expenditure such as telephone charges, electricity charges, cost of stationery forms, books, periodicals, liveries and charges for repair of furniture and office equipment. Before putting up these bills to the Branch Officer for signature, the expenditure relating to this should be posted in the register. Total expenditure booked on contingencies for a month should be posted in the expenditure register under the detailed head “02-614-18-PDA/SCR/SC-A4(4)-Office expenses” monthly. Every month, the particulars of expenditure booked in the accounts of a month should be ascertained from the Financial Adviser and Chief Accounts Officer and the same reconciled with the expenditure booked in the Register of Expenditure. Para 454 Control Statements: The Comptroller and Auditor General controls the expenditure under the major head “216-Audit” incurred in the several Audit and Accounts Offices. Principal Directors of Audit are responsible to keep the expenditure within the limits of appropriation. For the purpose of exercising proper control over expenditure, a monthly review of expenditure as specified in Paras 367 to 369 of the Manual of Standing Orders should be prepared commencing from the month of September, and sent to the Comptroller and Auditor General. The monthly review of expenditure in respect of Group ‘A’ officers and Group ‘B’/non-gazetted establishment should be prepared separately. The monthly reviews of expenditure are required to reach the Comptroller and Auditor General’s office by the middle of the month succeeding that to which they relate. Only the amount of bills which have been actually passed for payment in a particular month should be shown in column 3 of the monthly review of expenditure. As the accounts of a particular month are not generally closed before the due date for the submission of the control statement, statement of expenditure booked as also the expenditure proposed for inclusion by Accounts Office in the accounts of that month has to be ascertained. This expenditure, and not the expenditure as noted in the Expenditure Register, should be included in Column 3 of the control statement. The purpose is to review the expenditure upto-date and adopt special measures to limit the expenditure on items which tend to exceed the estimate, or approach Comptroller and Auditor General for a supplementary provision. The control statement upto January due by 15th February, should be specially scrutinised to surrender any unwanted provision. (Paras 11.12 to 11.15 of Manual of Standing Orders (Admn.) Vol.I 3rd Edition).

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Para 455 Register of Liabilities: A Liability Register should be maintained with a view to keeping a systematic watch on the liabilities to be met. The register should be maintained in the form given below: Sl.

Particulars

Approximate

No. of indent

cost

for supplies

Date of receipt and reference to

2.

3.

4.

5.

When

Reference to the entry in

accepted

Contingency Register

8.

debit or bill

issue vouchers --------------------------No. Date

1.

Reference to voucher

9.

Amount

6.

7.

Remarks

10.

The register should be reviewed every month and suitable action taken to see that supplies are made without undue delay and that bills are received and accepted in respect of supplies made. The register should be put up to the Audit Officer/Sr.Audit Officer(Admn.) every month. Para 456 Appropriation Accounts: After the close of the accounts for the year, the Appropriation Accounts of the expenditure pertaining to this office booked to the Civil Head ‘216-Audit’ will be prepared. In preparing the Appropriation Accounts, instructions issued by the Principal Director of Audit, Central Revenues should be followed. The accounts will be compiled in the proforma prescribed in Para 4 of the Comptroller and Auditor General’s Manual of Standing Orders (Technical) Vol.II. The explanations for variations should be drawn up carefully. The explanations for variation should conform to the explanations given in the various control statements, especially the last control statement. After approval by the Principal Director of Audit, the accounts will be forwarded to the Principal Director of Audit, Central Revenues, by the date advised by him. Copies of the Appropriation Accounts will be endorsed to the Comptroller and Auditor General and General Manager(Budget), South Central Railway. The audit certificate in the form prescribed will be signed by the Principal Director of Audit after obtaining the necessary certificate of Audit from the Principal Director of Audit, Central Revenues, in respect of expenditure relating to Group ‘A’ officers

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and from the Principal Director of Audit, Eastern Railway, in respect of Group ‘B’/Nongazetted establishment and forwarded to the Principal Director of Audit, Central Revenues. (Para 80 of Railway Audit Manual) Para 457 Appropriation Accounts of Pensionary Charges: The Appropriation Accounts in respect of pensionary charges will be compiled and sent to the Financial Adviser and Chief Accounts Officer, of this Railway. Para 458 Preparation and registration of Bills: All bills received in the office from the staff or from outsiders should be entered in chronological order in the Register of Bills to be maintained separately for different categories of bills such as Travelling Allowance Bills, bills for Medical Reimbursement, Reimbursement of Tuition Fees. At the time of passing the bills each entry in the register of bills should be attested by the Branch Officer. Remarks regarding passing of the bills or otherwise should also be given in the remarks column of this Register. A progress report showing the details of the bills outstanding for more than a week should be put up to the Branch Officer on every Monday. Para 459 Abstract of Attendance: The Branch/Divisional Audit Officers are required to send to the Administration section by the 16th of each month abstract of attendance of all the Asstt. Audit Officers and non-gazetted staff in that Branch/Division for the period from the 15th of previous month to the 14th of the current month. The abstract of attendance forms the basis for the preparation of pay bills. Para 460 (a) Salary bills of Gazetted and Non-gazetted officers: The preparation of all the pay bills of officers and staff (Group “B”, “C” & “D”) of this office has been taken over on the computer by the EDP Centre of South Central Railway with effect from 01.04.1988, using the same programme followed by the Railway Administration. Bills are being prepared for Gazetted and Non-gazetted officers separately. Bills in respect of all the units are passed and payment arranged by the Financial Adviser and Chief Accounts Officer, South Central Railway. The procedure to be followed is detailed in P.O.O. No.113 dated 19.12.1988. (b) System of Payment to Group “A” Officers: The pay and allowances of Group “A” Officers of this office are drawn by this office in the same manner as for staff and Group “B” Officers and sent to the Pay and Accounts Officer(Audit), Office of the Accountant GeneralII, Andhra Pradesh, Hyderabad. Para 461 Signing of Pay Bills: Pay Bills after check by the Section Officer/Asstt. Audit Officer should be submitted to the Audit Officer/Sr.Audit Officer(Bills) nominated for the purpose with the accompaniments for approval and signature. The specimen signature of the officer authorised to sign bills will be sent to the Financial Adviser and Chief Accounts Officer. Whenever there is a change in nomination, the specimen signature of the officer should be sent to the Financial Adviser and Chief Accounts Officer cancelling the authority delegated to the outgoing officer. (Para 94 of Railway Audit Manual) Para 462 Increment Register: All increments accrue as a matter of course in terms of Fundamental Rules 26 unless withheld as a disciplinary measure. The Register of Increments will be maintained in Form-SY.299. In the first week of every month, cases of all staff whose normal increments fall in that month should be reviewed taking into account all factors which may have the effect of postponing the

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increment, and the actual date of next increment and the rate of pay after such date worked out and noted in the respective columns against the names of the staff concerned. The Increment Register should be put up through the Audit Officer/Sr.Audit Officer (Bills) to the Deputy Director/Director incharge of Administration by the 10th of every month. Newly recruited clerk/typists (on sports quota and compassionate grounds) including those promoted from Group ‘D’ cadre will not be granted increment unless they pass the prescribed type test. (Para 290 of Manual of Standing Orders(Admn.) Vol.I and Para 103 of Railway Audit Manual). Para 463 Drawal of H.R.A. and C.C.A.: HRA and CCA will be paid in the various pay ranges at the rates fixed by the Government of India from time to time. H.R.A. at the prescribed rates may be paid to all employees (other than those provided with Government accommodation) without requiring them to produce rent receipts. However, they should furnish a certificate to the effect that they are incurring some expenditure on rent/contributing towards rent. H.R.A. at these rates will also be paid to Government employees living in their own houses subject to their furnishing a certificate that they are paying/contributing towards house or property tax or maintenance of the house. Para 464 Income Tax: The amount of income tax to be deducted monthly from each member of the staff whose income is taxable should be calculated twice in a year i.e. first in August (approximately) and finally in February. In the Pay bill of February, the final adjustment of the income tax recovery will be made taking into account the total amount recovered till then on approximate basis. Particulars such as amount of Life Insurance premia, amount of Postal Cumulative Time Deposit etc. should be called for from the staff for making the final assessment. At the close of the financial year, a statement of income tax deducted at source for the financial year should be made out in triplicate from the office copies of the pay bill register. Two copies of the statements should be submitted to the Financial Adviser and Chief Accounts Officer. (Ministry of Home Affairs O.M. No.24/10/64-AB dated 26.3.65) Para 465 Recovery of rent for Railway Quarters: Rent, electricity charges, and water charges are required to be recovered from the staff who are in occupation of Railway quarters at the same rate as are applicable to the railway staff. A rent roll in the form prescribed should accompany the Pay Bill. Para 466 Recovery Register: Separate Recovery Registers should be maintained for each category of recovery. Only one register should be maintained for the whole office in respect of each category of recovery. The following are the recoveries for which the registers are maintained. 1. Advance of pay on transfer. 2. General Provident Fund Advance. 3. Advance for conveyances. 4. Festival Advance.

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5. Fan Advance. 6. House Building Advance. 7. Loans due to Co-operative Credit Society. Entries in respect of items (1) to (6) are made from office orders/sanctions and entries in respect of item (7) are made from the debit schedule received from the Cooperative Credit Society. Actual recoveries effected through the pay bills should also be noted in the register monthly under the various headings and attested by the Section Officer/Asstt. Audit Officer. Para 467 Supplementary Bills: The pay and allowances of any member of the staff (when not drawn through the main pay bill) will be drawn through a supplementary bill. This will be prepared in the same manner as that of the main pay bills. Para 468 Arrear Bill: Arrears of pay, allowances or leave salary etc. if more than three months old, will be drawn through a separate pay bill giving indication to the main pay bill in which it was not drawn. A note of the arrear bill should be made in the office copy of the bills for the period to which the arrears pertain duly attested by the Section Officer/Asstt. Audit Officer(Bills) to obviate the arrears being claimed for the second time. The certificates mentioned in Para 276 of the Treasury Rules Vol.I should be recorded on the arrear bill. Para 469 Last Pay Certificate: Last Pay Certificate is required to be prepared only when the staff are transferred out of this office i.e., to the jurisdiction of another Accounts Office. Para 470 Disbursement of Pay and Allowances: For payments on other than pay day, the procedure laid down by the Financial Adviser and Chief Accounts Officer from time to time should be followed. In terms of Para 72 of Railway Audit Manual, audit of expenditure relating to this office is done by the Principal Director of Audit, Eastern Railway. Copies of all sanctions and office orders should invariably be endorsed to the Audit Officer. Comptroller and Auditor General has fixed 25th of every month as the due date for receipt of paid vouchers for the previous month by the Audit Officers (CAG’s letter No.1149-TAI/23966 dated 20.4.1967). Financial Adviser and Chief Accounts Officer, South Central Railway has been requested to adhere to the date fixed by the Comptroller and Auditor General strictly vide this office letter No.AuA/XI/1/O dated 4.5.1970. Para 471 Leave: Leave should be applied for by the staff in the prescribed form. Leave applications will be considered only if they have been recommended by the Asstt. Audit Officer/Section Officer and Branch Officers. The Principal Director of Audit has delegated his powers to sanction all kinds of leave (except Special Casual Leave, Special Disability Leave and Study Leave) to the authorities mentioned in Column - 3 as indicated below, under the authority vested in him by CAG vide letter No.2991-GE.II/109-84 dated 04.01.1985. Category of Employee (1)

Period of Leave

(2)

Competent Authority (3)

Remarks

(4)

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Asst. Audit Officers

1) All kinds of leave with pay and allowances upto 30 days without a substitute. 2) All kinds of leave with pay & allowances beyond

Group Officer concerned

Leave to Officers working directly with Pr.DA should be sanctioned only with the approval of Pr.DA.

Para 472 Maintenance and verification of Service Registers and Leave Accounts: The maintenance of service registers and leave accounts of the Group ‘A’ and Group ‘B’ officers and non-gazetted staff of this office is the responsibility of Administration Section. The posting of all office orders concerning the official events of an employee in his service register should be done as and when they occur. Section Officers/Asstt. Audit Officers are authorised to attest entries in the service book of non-gazetted staff other than those on the first page of the service book and annual verification of service. These powers will not, however, be exercised by them in respect of entries in their own service register. The Audit Officer/Sr.Audit Officer (Admn.) who is delegated with powers to attest entries on the first page of the service register, should verify 10% of the other entries in the service books and initial them in token of their having done so. The Audit Officer/Sr.Audit Officer (Admn.) is delegated with powers to attest the entries in the Service Register and the leave account of all the gazetted officers and these entries should be verified to the extent of 10% by the Deputy Director/Director (Admn.) every year. (Ministry of Finance letter No.3(3)-E-G.I/67 dated 20.4.1967 received under CAG’s letter No.1384-Tech.Admn.I/698.66 dated 3rd May, 1967 and CAG’s letter No.2888Tech.Admn.I/51-60 Volume III dated 23rd August, 1968). The service of each pensionable employee must be verified from the pay bills every year and a certificate regarding such verification recorded in the service register soon after the close of the financial year. A report to the Comptroller and Auditor General that such certificates have been recorded should be sent by 10th July. Service registers of staff who may be permanently transferred from other Audit Offices should be reviewed on receipt to see that the certificate of verification of pensionable service till the end of the month preceding their transfer has been recorded and attested. (Soon after an Officer is confirmed in a Gazetted post, action should be taken to arrange for the non-gazetted portion, of his service being verified by the Principal Director of Audit, Eastern Railway). All service books and leave accounts of staff should be thoroughly checked by Internal Audit Section and that of the staff of the Internal Audit section should be checked by a Section Officer/Asstt. Audit Officer nominated by the Deputy Director/Director, once a year. The service books should be verified and attested by the staff concerned once every year and an annual certificate to this effect submitted to the Comptroller and Auditor

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General by 30th September every year. A programme should be drawn up for the verification of the service registers of the staff, in batches early in August. (CAG’s letter No.2515-NGE.I/68-67 dated 20.11.1967 and SR.197 to 203) Para 473 Office Order Books: Separate Office Order Books should be maintained for Gazetted Officers and Non-Gazetted Officers in which the Office Orders are pasted in chronological order. Para 474 Travelling Allowance: Audit staff are governed by the Travelling Allowance rules contained in the Indian Railway Establishment Code Vol.II. The provisions in Supplementary Rules will, however, apply to the Railway Audit staff in respect of journeys on deputation to and from non-railway offices. The staff are required to present their travelling allowance claim in Railway Travelling Allowance Journal Form, in duplicate, to the Bills section. Separate travelling allowance journal should be prepared for every month, even though the same tour may be continued extending over different calendar months. The travelling allowance journal should be scrutinised and submitted to the Controlling Officer, i.e. Audit Officer/Sr.Audit Officer in charge of Bills in the case of nongazetted staff, and Deputy Director/Director in the case of gazetted officers for countersignature, after entering full details in the Register of Travelling Allowance Claims, to be maintained separately for gazetted officers and non-gazetted officers. Particulars regarding the claims viz. date of commencement and completion of journey, number of days, rate of travelling allowance, gross claim, advance of travelling allowance, net claim, date of passing the advance, and the month in which the travelling allowance claims have been included will be noted therein. The register should be put up to the Audit Officer/Sr.Audit Officer (Bills) along with the claims of non-gazetted officers which he countersigns. Those of the gazetted officers should be put up to Deputy Director/Director through Audit Officer/Sr.Audit Officer (Bills). The travelling allowance claims of Group ‘B’ Officers and non-gazetted officers are paid through pay sheets. The amount of the claim in each journal will be entered under the column ‘Travelling Allowance’ in the monthly pay sheets. The original travelling allowance journal should be attached to the pay bill and the duplicate travelling allowance journals filed separately in Bills Section. Travelling allowance journals received in the Bills Section upto 10th of a month will be included in the pay sheet of that month. Para 475 Advance of Travelling Allowance on tour/transfer: Applications for advance of Travelling Allowance on tour should be submitted in the prescribed form. Advance of Travelling Allowance on tour is normally admissible upto 75% of the anticipated claims. A temporary employee should furnish surety bond from a permanent employee, alongwith his application for advance. The advance of Travelling Allowance will be adjusted in the Travelling Allowance Bills to be submitted immediately on the completion of the tour or on 31st March whichever is earlier. The advances granted in the month of March should be adjusted before 30th April. Advance of Travelling Allowance should be noted in the Register of Travelling Allowance claims passed and attested by Audit Officer/Sr.Audit Officer (Bills).

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Para 476 Medical Attendance Rules: Compilation of Central Service (Medical Attendance) Rules, 1944 and orders issued by the Government of India from time to time should be referred to in dealing with the claims for reimbursement of medical expenses. Audit Officers / Sr. Audit Officer (Bills) is delegated with powers to countersign the Medical reimbursement claims of Non-gazetted staff subject to the following conditions. (i)

That the bills for more than Rs. 200/- requires the counter signature of Deputy Director / Director in charge of Administration.

(ii)

Cases of the Government servants whose progressive total of bills exceeds Rs. 1,000/- per annum should be brought to the notice of Deputy Director / Director in charge of Administration.

(iii)

Reports of Internal Audit and replies thereto should be submitted to Deputy Director / Director in charge of Administration, for information. (CAG’s letter No. 57-NGE.I/78-80 dated 15.01.1982)

All bills for charges on account of medical attendance and treatment should be countersigned by the Controlling Officers who are authorized to countersign traveling allowance bills of the government servant concerned. A Register of Medical Claims should be maintained in the Bills Section allotting separate pages for the various employees. The register should be submitted to the Audit Officers / Sr. Audit Officers (Bills) / Deputy Director / Director fortnightly showing the position of the claims received but not passed within a week. Giving also brief reasons for the delay in disposal of the claims. Para 477. Educational Assistance: A Government servant is eligible to draw Children’s Educational Allowance when he is compelled to send his child to a school away from the station at which he is posted and/or residing, owing to the absence of a school of the requisite standard at that station. The rates of allowance effective from 1.8.97 are as under: Primary, Secondary Secondary classes

and

Higher Rs.100/- p.m. per child.

(Department of Personnel & Training’s O.M. No.21017/1/97/Estt(Allow) dated 12.6.98) The allowance shall be admissible to a Government servant throughout the year, not withstanding that no tuition fees is paid during the vacation. Children’s Educational Assistance shall be admissible in respect of children between the age limit of 5 years and 20 years. Assistance is admissible in respect of not more than 3 children born upto 31.12.1987 and shall be restricted to 2 children born thereafter. (Department of Personnel & Training’s O.M. No.21011/2/86/Estt(Allow) dated 3.8.90) The Government servant while applying for this allowance initially, should furnish a certificate as per Rules and thereafter in the months of March and July every year.

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Para 478 Reimbursement of Tuition Fees: A Government servant shall be eligible to the reimbursement of tuition fees payable and actually paid in respect of his/her child provided that no children’s educational allowance is admissible to him/her. The tuition fees may be reimbursed subject to the following limits w.e.f. 01.08.97. 1.

Class X and below

Rs.40/- p.m. per child

2.

Classes XI & XII

Rs.50/- p.m. per child

3.

Physically handicapped and Mentally retarded

Rs.100/- p.m. per child

4.

Science Fee, if charged separately, in respect of children studying in Class IX to XII and offering Science subjects

Rs.10/- p.m. per child

A Government servant shall not be eligible to draw reimbursement of tuition fees for a child for more than two academic years in the same class and in respect of not more than 3 children at any time born upto 31.12.1987 and shall be restricted to 2 children born thereafter. A certificate shall be furnished as per rules at the time of preferring his initial claim and thereafter in the months of March and July every year. The concession will also apply to all Central Government employees without any pay limits with effect from 01.12.1987. (Department of Personnel and Training O.M. No.21017/1/97-Estt(Allow) dt.12.6.98 read with O.M. Nos.21011/21/88-Estt(Allow) dt.17.10.88, O.M. No.12011/4/88Estt(AC) dt.31.5.89, No.120K/2/83/Estt(AC) dt.27.12.89, No.12011/2/88/Estt(AC) dt.3.8.90 and O.M.No.12013/1/90-Estt(AC) dt.8.5.92) Para 479 Hostel Subsidy: A Government servant shall be eligible to the grant of a subsidy at the rate of Rs. 300/- per month per child if he is obliged to keep his children in the Hostel of a residential school away from the station at which he is posted and/or residing, because of his transfer. This shall be payable upto Higher Secondary and Senior Secondary stage and shall not be admissible in respect of a child for whom Children’s Education Allowance is drawn by a Government servant. A certificate as per rules should be furnished at the time of preferring his initial claim and thereafter in the months of March and July every year. (Department of Personnel and Training O.M. No. 21017/1/97-Estt(Allow) dt. 12.06.98 read with O.M. No.s 21011/21/88-Estt(Allow) dt. 17.10.88 O.M.No. 12011/4/88Estt(Allow) dt. 31.05.89, No. 12011/2/83/Estt(Allow) dt. 27.12.89, No. 12011/2/88/Estt(Allow) dt. 03.08.90 and O.M.No. 12013/1/90-Estt(Allow) dt. 08.05.92)

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Para 480 Festival Advance: Festival Advance is granted to the non-gazetted employees whose basic pay does not exceed Rs.8,300/- p.m. for the festivals nominated by the Principal Director of Audit. This advance is admissible for any one festival during the calendar year and is recoverable in ten equal instalments. No Festival Advance for the next year will be granted until the advance granted in the previous year is recovered fully. Para 481 Cycle Advance: Cycle advance is granted to the non-gazetted employees whose pay does not exceed Rs.5,000/- p.m. The exact date of receipt of the advance by the employee should be intimated to the Administration Section immediately after the drawal. The advance is recoverable in not exceeding 30 instalments. A second advance for the purchase of a bicycle will not be granted to an employee until the completion of three years since the drawal of the previous advance. Para 482 Table Fan Advance: Group ‘D’ staff who apply for fan advance should submit the electricity bill (receipts) and also produce a certificate in the following form: “I certify that: i.

The portion which I occupy is electrified.

ii.

A plug point exists for the use of a table fan.

iii.

I do not have a fan in my house, and

iv.

Sri/Smt._____________________ in whose name the electricity bill has been made out is my house owner/father/wife.”

The amount of advance which may be granted should not exceed Rs.1,000/- or the anticipated price of the Table Fan, whichever is less. A second advance for the purchase of a fan is not granted within ten years of the first one. To ensure this, a record of the grant of the advance should be made in the service register of the employee. Para 483 Passes/PTOs: Privilege Passes/PTOs required by the Officers and staff of Administration section and those working in the sections located in the Main Office annexe building will be issued by the Asstt. Audit Officer (Administration Section). Other kinds of passes required by officers and staff working in Divisions and sections located at Headquarters, Secunderabad, will be issued by the Audit Officer (Administration) (See Para 235). Para 484 Grant-in-aid to Recreation Club: Grant-in-aid for provision of amenities or recreational or welfare facilities to the staff of the Central Government Departments will be regulated in the manner indicated in Ministry of Home Affairs Office Memorandum No.2/167/59-Welfare dated 10th March, 1961, as amended in Office Memorandums No.24/2/62-Welfare dated 12.10.1962 and Memorandum No.2/8/67 - Welfare dated 11.5.1967 and Ministry of Finance (Expenditure) O.M. No.F(14)(2)-E-II(A)/89 dt.19.9.89. Proposals for annual grant-in-aid should be formulated in accordance with the orders issued by the Comptroller and Auditor General of India from time to time. The Recreational Clubs should submit their accounts to the Principal Director of Audit immediately after the close of the financial year in the form given in the Annexure

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to Comptroller and Auditor General’s letter No.890-NGE/III/114-63 dated 23.4.1963 (duly audited by their Internal Auditor). The accounts should be accompanied by all vouchers. Such of the items of expenditure which are not supported by vouchers should be certified by the President/Secretary/Treasurer of the club to the effect that the expenditure was actually incurred and it was not possible to get a receipt. The accounts of the clubs should then be examined by an auditor nominated by the Principal Director of Audit and signed by the auditor concerned in the prescribed proforma. Grant-in-aid for the first quarter of the year will be released in the beginning of each financial year. The balance will be released only after the submission of the accounts for the previous year. An illustrative list of items on which expenditure can be incurred out of the grant-in-aid is given in Ministry of Home Affairs O.M. No.2/14-61-Welfare dated 7.12.1961. The grants are intended only for provision of amenities or of recreational or welfare facilities and would not cover within their scope any compassionate objects such as death benefits. No expenditure should be incurred out of grant-in-aid for organization of excursion trips. Principal Director of Audit is empowered to sanction recurring grants-in-aid for provision of amenities to the recreation clubs on the terms and conditions stipulated in the Ministry of Home Affairs O.M. No.2/167/59-Welfare dated 10.3.1961 subject to budget provision having been made. Copies of the sanctions issued by the Principal Director of Audit should be endorsed to the Comptroller and Auditor General. The expenditure on grants-in-aid is chargeable to the head “216-Audit-grants-in-aid”. (Rule 153 - G.F.Rs. as amended from time to time). Para 485 Audit Bulletin: The Audit Bulletin is issued by the Comptroller and Auditor General quarterly. The material for incorporation in the Audit Bulletin is collected from sections/divisions and a report furnished to Comptroller and Auditor General on the 10th of the month following each quarter. The number of copies required should be intimated by the 15th of April every year. Para 486 Monthly Review Report on the activities of Administration Section: The Administration Section should submit a monthly review report on the activities of that section in the proforma given in Annexure XIII to this chapter. This monthly report should indicate the position obtaining on the last working day of that month and should be put up by 15th of the following month to Principal Director of Audit through Deputy Director/Director. (P.O.O. No.85 dated 11.10.1985) (Para 221 A to D of G.F.Rs.)

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CHAPTER - V GENERAL AUDIT PROCEDURE 501. General: The general principles and rules of audit applicable to different classes of transactions laid down in the Manual of Standing Orders(Audit) and detailed instructions relating to audit procedure contained in the Railway Audit Manual should be followed. 502. Programme of Audit: The programme and extent of audit are contained in the Secret Memorandum of Instructions and Appendix to the Chapter to Railway Audit Norms regarding extent of Audit(Railway Audit). The Secret Memorandum of Instructions which is issued only to Section Officers/Asstt. Audit Officers and Branch Officers should be kept upto-date, based on the orders affecting the programme and extent of audit issued by the Comptroller and Auditor General of India(Railways) from time to time even if no formal correction slips are issued. Principal Director of Audit is authorised to temporarily reduce the quantum of audit where such reduction is considered necessary and to utilise the staff thus released on special inspections, investigations or reviews. In addition to maintaining a record of such relaxations as prescribed in Para 3 of the Secret Memorandum of Instructions, the Principal Director of Audit is required to send a half yearly report for half year ending September/March to the Comptroller and Auditor General of India by 15th October/15th April, giving the following information. a) b) c) d) e) f)

Items for which relaxations have been ordered and the original and the reduced percentages of audit. The periods for which the temporary relaxation were made. Reasons indicating the justification for the relaxation. The staff rendered surplus due to the relaxations in terms of man-hours. The manner in which the staff so released were utilised. Brief particulars of the results achieved by the deployment of the staff.

503. Periodicity of Audit: Ordinarily monthly audit of vouchers/documents relating to a month is done in the third following month, e.g., the audit of vouchers/documents for January is done in April. The following are the exceptions: (Chapter X of Railway Audit Manual and Chapter III of Secret Memorandum of Instructions). 1.

Sanctions received in a month are audited during the following month.

2.

Completion reports sanctioned in a month are audited during the following month.

3.

All items of Traffic Audit are done in the fourth following month excepting warrants and credit notes and collected tickets which are checked concurrently. Cases of special trains and field reports of Travelling Inspectors of Station Accounts are also audited during the following months.

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4.

Audit of quarterly/half-yearly items relating to a particular quarter/half year should be completed before the end of the following quarter/half year. Audit of yearly items should be taken up as soon as the relevant records/vouchers are available and should be completed before the audit certificate on March Accounts is given.

However, the quarterly audit of Stores and Works contracts relating to a quarter should be reviewed during the 2nd following quarter leaving the quarter immediately following the one in which the agreements have been entered into/purchase orders issued e.g. documents relating to the quarter ending 31st December should be reviewed during the quarter ending 30th June (P.O.O. No.100 dated 11.3.1987). The audit of quarterly, half yearly and annual items other than those which have been divided into monthly units for being checked throughout the year should be distributed evenly during the whole period. Month of account for audit of annual items may be got selected by the sections concerned. Annual items which are not dependent on the closing of the accounts of the year should be taken up for audit sufficiently early. 504. Selection of documents for audit: Selection of paid vouchers should be made with reference to the Abstract of Bills passed (Co.7). The month of account is taken as the month in which Co.7 is prepared irrespective of the period to which the payment may relate. The Co.7 number and the amount of the vouchers should be first listed separately for each item of audit in the selection-cum-audit completion register, as prescribed in the Annexure I., indicating the total number of vouchers in each category, the extent of audit and the number of vouchers to be selected and the register put up to the Asstt. Audit Officer/Branch Officer for selection. While giving requisitions for vouchers, the particulars of Co.7 Nos. and date should invariably be given so as to facilitate Accounts to make available the paid vouchers without any difficulty. A few pages should be allotted for each item of audit in this register and the selections for the same item from month to month should be obtained consecutively. In respect of items of audit for which a unit or units are selected, a complete list of the units may be entered at one place and the selections obtained against the units from month to month. The selection of Units / documents for test Audit should be done by Branch Officer of the section except in cases where it may not be possible for him / her to do so. In such cases initial selection made by Asst. Audit Officer / Section Officer should be submitted to Branch Officer. The system of selection of vouchers for audit should involve minimum labour. The selection for audit of vouchers which involves much labour and time, like work orders, journal vouchers, sub-vouchers of Journal Vouchers etc. should be made directly from the registers/lists available with the Executive or Accounts Offices, without giving any indication in these records of the items selected. In cases where the number of vouchers are too many involving much clerical labour to note the particulars of vouchers in the selection-cum-audit completion register for the purpose of obtaining selection, it will be sufficient to mention only the total number of vouchers belonging to that category. In such cases, the connected Accounts Office register/document should be submitted to the Asstt. Audit Officer/Branch Officer for selecting the required number of vouchers. However, details of the vouchers selected should be noted in the register.

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Selection of vouchers by the Asstt. Audit Officers/Branch Officers should be completed well in time before the close of the month preceding the month of audit so that the selected vouchers and documents can be collected in time. 505. Procedure for selection of Vouchers, Pay Bills etc.: In terms of Para 145 of the Railway Audit Manual, the selection of vouchers should be done in such a way that all the departments come under audit during the year according to the programme of audit. If the number of vouchers to be audited works out to less than one at the prescribed percentage, a minimum of one voucher should be selected. This principle should be applied in the case of selection for current review and post review also. The Section Officer/Asstt. Audit Officer should test check the correctness of the listing of vouchers by Auditors/Senior Auditors once in a quarter and indicate the results thereof in the Selection Register. It should be clearly recorded in the Selection Register in respect of each item that "Listing of vouchers has been test checked". 506. Requisition for Vouchers: Requisitions calling for the vouchers and documents selected for audit should be sent to the Accounts Office without delay over the signature of the Section Officer/Asstt. Audit Officer. The requisitions should be prepared in duplicate by the Auditor/Senior Auditor concerned, numbered serially and one copy thereof sent to the Accounts Office. The office copies of the requisitions should be preserved for six years. Requisition for departmental files should be sent over the signature of the Branch Officers, endorsing a copy to the Accounts Officer. Whenever lists of outstanding vouchers are sent to the Accounts Office, reference to the requisition should be given invariably. Even in cases where files are called for directly from Executive Offices (e.g., contract agreements, P.Os. regarding stores, compensation claims cases etc.) the Accounts Office concerned should also be kept informed by endorsing copies of requisitions and reminders. 507. Collection of documents: Auditors/Senior Auditors and Section Officers/Asstt. Audit Officers should keep a close watch on the receipt of vouchers contacting the supervisory staff of the Accounts/Executive Office, if necessary. If the vouchers due for audit in a month are not received by 20th of the month, a D.O. letter should be sent to the Accounts Officer over the signature of the Branch Officer. Vouchers and documents requisitioned but not made available for audit should be shown under "arrears due to non-receipt of vouchers from Accounts Office" in the monthly Arrear Report. All sections/divisions should send along with the Quarterly Arrear Report a list of vouchers not made available to Audit for more than 3 months, in quadruplicate. The Coordination section will compile a consolidated list of vouchers not made available to Audit for issue of a D.O. letter from Principal Director of Audit to the Financial Adviser and Chief Accounts Officer, South Central Railway, Secunderabad, if considered necessary. 508. Completion of Audit: At the close of the month, the Auditor/Senior Auditor should put his dated initials as proof of his having completed the audit, in the column provided in the Selection-cum-audit completion register against the documents audited. A certificate of completion of audit and review should be given in the Selection Register in the following form:

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"Certified that (i)

selection of vouchers due for audit for the month has been completed, and

(ii)

all vouchers, documents selected for audit and review have been audited and reviewed and those required to be submitted to Section Officer/Asstt. Audit Officer/Branch Officer for review have been submitted, except those which have been shown as outstanding in the selection-cum-audit completion register.

Section Officer/Asstt. Audit Officer" All items for which general review has been prescribed excepting those to be originally audited by the Section Officer/Asstt. Audit Officer/Branch Officer, may be entrusted to the Auditor/Senior Auditor and concurrently reviewed by the Section Officer/Asstt. Audit Officer. On completion of quarterly/half yearly/yearly items of audit, a specific report should be put up to the Branch Officer indicating the results of audit for Post Review by him. 509. Audit enfacement: Documents and vouchers audited should be enfaced "Audited" over the dated initials of the person who originally audited them. The Section Officers/Asstt. Audit Officers/Branch Officers should ensure by test check that this is being done. The Provident Fund Ledger cards need not be enfaced with the stamp "Audited" but a record of the Provident Fund cards audited should be maintained in the Selection Register. In the case of 'tracing' of items from deduction lists into Provident Fund Ledgers, 'Audit of Journal Vouchers', and 'Temporary and Final Withdrawals', audit enfacement should, however, be made. 'Works Registers', 'Revenue Allocation Registers', 'Passes and P.T.Os. Registers', 'Miscellaneous Advance and Deposit Registers' etc. which are reviewed partly or wholly, should be stamped 'Audited' when their review is completed. 510. Selection-cum-Audit Completion Register: Each Auditor/Senior Auditor/Section Officer/Asst. Audit Officer should maintain a Selection-cum-Audit Completion Register to record the particulars of vouchers/documents to be selected for audit as mentioned in Para 504 and also to record completion of audit of selected vouchers in the prescribed proforma given in Annexure I to this chapter. The details of vouchers selected for audit should be noted in the register with full particulars. For example, in the case of salary bills and other similar vouchers where the mode of selection of vouchers is based on units, the particulars of vouchers audited in the unit selected should be noted with full particulars such as Au6 and Co7 Nos. In the case of Accounts of Subscribers to Provident Fund, the particulars of selected accounts need only be shown in the register. If and when only a part of a voucher as in the case of Non-Gazetted Officers' pay sheets is selected, in addition to number and date of the voucher, serial numbers/names of the employees selected should also be indicated in the Selection-cum-Audit Completion Register. For parcel way bills and invoices, the name of the station and the printed number of the way bill/invoice audited and for warrants and credit notes, the names of the

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stations and total number of vouchers together with the bill number and date should be mentioned in the register. 511. Progress Report: Each auditing section should maintain a Progress Report Register in the form given in Annexure-II to this chapter. The register should contain all items of audit as per the programme of audit and those added from time to time. Separate sections should be set apart for monthly, quarterly, half yearly and annual items. In respect of monthly items, pages should be provided for 12 months to record details under Columns 4, 5 and 6. Under Columns 4 and 6, the total number of vouchers/documents involved need only be indicated, giving precise reasons for arrears and probable date of clearance in the 'remarks' column. If arrears relate to more than one month, month-wise details thereof should be indicated. If the month's work is completely done, the word "full" may be written in column (5). Under monthly items of audit, the following items should also be entered. Current Review : By Section Officer/Asstt. Audit Officer Current Review : By Branch Officer. Original Audit : By Section Officer/Asstt. Audit Officer Original Audit : By Branch Officer Post Review : By Section Officer/Asstt. Audit Officer Post Review : By Branch Officer. The register should be closed every month summarising the arrears as under : Month Items ---------- ------------------------------I. Arrears due to arrears in Accounts Office:

1/2007 2/2007

28-M -

30-M 40-M -

II. Arrears due to nonavailability of vouchers

-

-

-

-

III. Arrears in Audit

-

-

-

-

----------------------------------------------------Total ----------------------------------------------------Auditors, Senior Auditors, Section Officers, Asstt. Audit Officers and Branch Officers should initial at the end of each section viz., monthly, quarterly, half-yearly and yearly. 512. Combined Monthly Arrear Report(CMAR): The combined monthly arrear report should be submitted to the Branch Officer along with the Progress Report Register. The salient features of the Combined Monthly Arrear Report are as under: All the requisite returns/reports are incorporated in one form running to 18 pages and having VII sections. Twelve such forms shall be stitched together in a book form and supplied to each section. The specimen forms of the CMAR are given in Annexure-III to this chapter. Sections will make the entries in the Register each month by reference to the Control Registers maintained by them and submit it to Principal Director of Audit through Coordination Section on or before the 6th of the following month. (Authority : Au/COR/XVII-2/Vol.X, dated 2/92.) 128

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On receipt of CMAR from all sections, Coordination section shall submit them to the Principal Director of Audit with a covering note indicating therein the following information/analysis in 5 Paras by the 16th of every month in respect of the arrear report relating to previous month: I. (a) (b) (c)

Total No.of CMARs due : Total No. of CMARs received: Sections//Units from which the CMAR is due:

II. Particulars of arrears in audit work(in mandays) At the end of ------------------------------------------Previous month Current month (a) Arrears due to arrears in Accounts Office (b) Arrears due to non-availability of vouchers (c) Arrears due to arrears in audit N.B.: Section-wise details are to be given in an annexure attached to the note. III. Instances of arrears of more than 10 days each : Unit

Arrears in Accounts Office

Arrears due to non-availability of vouchers

Arrears inAudit

IV. Delay in issue of inspection reports and arrears thereof. Each item of delay is to be listed out. Unit

Office inspected

No.of reports in arrears

Arrears in mandays

V. Position of outstanding references from Comptroller and Auditor General of India(Railways) year-wise break-up to be given. Unit

Opening Balance

Addition

Clearance

Closing Balance

The following course of action is required on the part of units/sections while submitting the CMAR. Section I (a): Under this section the clearance, if any, in respect of returns/registers etc. which were shown as outstanding in the last monthly report, along with reasons for items still outstanding should be furnished.

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(b): Returns/registers etc. not submitted/despatched on due dates together with the actual date of submission/despatch and the reasons for delay in submission/despatch should be indicated. The return viz., list of delayed and pending returns/registers introduced vide P.O.O. No.80 dated 2.9.1985 need not be submitted. (c ) Occasional Returns: Information required by specified dates to be submitted to PDA/HQ, which are due and not submitted/submitted late. Section II Inward References: For this purpose, 'B' dak letters received upto 3rd Monday and 'A' dak letters and CAG references received upto 4th Monday of the month but not disposed off till the date of submission of CMAR should be taken into account. 'A' and 'B' dak arrear report and outstanding CAG references report need not be sent. Section III (a) Pending case: Details of cases pending for over 6 months and the year-wise break-up thereof should be furnished duly indicating the steps taken to clear them. Section III (b) Reference Outward (ROC): Under this section outward references outstanding for 6 months and more with the year-wise break up should be given. This information should be furnished with reference to the position obtaining on the last working day of the month to which the report relates. Section IV Arrears in Audit Work: While furnishing the arrears against Section IV(A)(i) and (B)(i) instances of arrears of more than 2 man days each should invariably be indicated. Since details relating to completion of OA and PR are indicated in Section IV(B)(ii) of the CMAR, no separate return on the subject need be submitted to Coordination Section along with the monthly arrear report. Section V (a): Progress of Inspection and (b) Issue of Inspection Reports: While furnishing the information against various columns, arrears in the issue of inspection reports need to be quantified. In regard to column (1) under V (a), inspections which have been postponed with the prior approval of Principal Director of Audit need not be exhibited in the CMAR. However, arrears, if any, in this regard as on 31st March of a year, should be shown in the CMAR for March and subsequent months till the same are cleared. Computation of internal arrears in terms of mandays in respect of inspection reports not issued within one month should be done with reference to the actual work load. The period of one month for issue of Inspection Report from the date of completion of audit is to be computed as under : 5 working days for the receipt of the draft report from the Audit party. 5 working days for the section to submit the report. 4 working days for the Audit Officer/Senior Audit Officer to pass the report. 10 working days for typing and issue of the report. The arrears on this account may be shown as internal arrears under Section V (b) of the CMAR. (c ) Details of offices against which ‘NIL’ Reports are proposed and approved.

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(CAG's letter No.799-TAI/83-83 dated 18.7.1983, No.343-TAI/83-83 dated 16.3.1985 and No.1108-Audit.II/83-83 dated 17.7.1986). Section VI (I to vi) Outstanding Part. I AIRs / Test Audit Notes and Special Letters: Under this sub-section, Inspection Reports Part I, Test Audit Notes Part I and Special Letters outstanding on the last day of the month together with year-wise break-up money value, case number and the level at which latest reminder issued should be furnished. Section VII (1) & (2) Under this section, outstanding inspection reports - Part II and test audit notes - Part II on the last day of the month need be furnished, together with the year-wise break-up, money value etc. Summary of arrears section-wise (Section IV A(i), A(ii), IV (B), V (a), V (b) under internal and external categories should be given. The CMAR has to be submitted by Reports section as well after filling up the relevant sections therein. (P.O.O. No.91 dated 7.7.1986). 513. Quarterly Arrear Report: Arrear Report in computerised format for Quarters ending 30th June, 30th September, 31st December and 31st March are due for submission to C&AG by 20th of July, October, January and April respectively. The Report in the under-mentioned formats should reach COR by 6th of each Quarter for consolidation and onward transmission to Headquarters positively within the due date. MIS AUD - I (Annual Statement to be sent in October every year). MIS AUD - 2R, MIS AUD - 3, MIS AUD - 4, MIS AUD - 5C, MIS AUD - 7C, MIS AUD - 11, MIS AUD - 12, MIS AUD - 13, MIS AUD - 14 & MIS AUD - 15. Authority :

1) C&AG's Lr.No.1314-Audit-II/105-90 dt.11.10.91. 2) C&AG's Lr.No.430-Audit-II/105-90 dt. 5/93. 3) C&AG's Lr.No.159-RAI/17-7/92 dt.15.9.93.

514. Original Audit: Section Officers/Asstt. Audit Officers/Branch Officers incharge of auditing sections are required to do original audit work amounting to not less than 2 days' work in a month as part of their duties, the percentage of check being that prescribed in the Secret Memorandum of Instructions. Detailed records of vouchers/documents reviewed and the man-hours thereof should be recorded in the Original Audit Register. (Paras 140 and 141 of Railway Audit Manual and Para 6 of Secret Memorandum of Instructions). For this purpose, separate lists of 12 units of Original Audit work are to be framed by the following sections for obtaining the approval of Principal Director of Audit in January every year. i.

Traffic Audit Coaching (TAC)

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ii. iii. iv. v. vi. vii. viii.

Traffic Audit Goods (TAG) Construction Audit Books and Budget Audit(Headquarters) Workshop and Stores Audit Establishment Audit(Headquarters) Expenditure Audit(Headquarters) Stores Audit(Headquarters)

Selection of OA and PR units has been centralized and Headquarters section have been entrusted with taking selection each month and to advise the Units concerned. Accordingly all the units for OA and PR of each month will be selected by Sr.Au.O. / Au.O. of EHQ, XHQ, W&S/LGD and CON/SC for advising their corresponding Auditing Units. On completion of OA & PR the results thereof are to be advised by these units to their corresponding Headquarters section who would consolidated and submit to PDA by 10th of the following month through COR section. While forwarding the list of OA & PR each year to COR section, for getting approval of PDA, these Headquarters section should ensure that all items of Audit, laid down in SM I, OM and RAM and other local orders have been covered and those which exclusively pertain to Divisions / Units. Annual and other periodical item grouped separately and their Post review arranged for as and when the audit of each is completed. (Para 50 SMI) Coordination section should review the lists of original audit and revise the same from time to time as required in Para 141 of Railway Audit Manual and Para 6 of Memorandum of Instructions in the light of local conditions and the relative importance of the various items of work allotted to the section. 515. Current Review: Audit work done by Auditors and Senior Auditors/Section Officers/Asstt. Audit Officers should be current reviewed by Section Officer/Asstt. Audit Officer and Branch Officer respectively. As soon as audit is competed by the Auditors, the Section Officer/Asstt. Audit Officer should obtain selections for Current Review from the Branch Officer. The Current Review Registers should be treated as 'Secret' and kept in the custody of the Section Officer/Asstt. Audit Officer/Branch Officer. The register should be maintained in the proforma given in Para 162 of Railway Audit Manual. Separate pages/sections should be allotted in this register, for different items of work entries for the same item being made continuously from month to month. Besides the columns given in the proforma, an additional column should be opened after column 2 to indicate page number of Selection-cum-Audit completion register to facilitate cross reference. As and when original audit is completed by the Section Officer/Asstt. Audit Officer, the vouchers/documents and the register containing the original audit remarks should be submitted to the Branch Officer for current review. Items selected for current review, particulars of vouchers current reviewed and current review remarks of the Branch Officer will be noted in the Current Review Register of the Branch Officer. (Para 151 of Railway Audit Manual). 516. Post Review: Every section should have a separate list of periodical items due and the current review, post review should be arranged as and when audit of these items is completed. A specific report regarding results of quarterly, half-yearly and annual items should be submitted to the Branch Officer for Post Review by him. These items are not to be included in the list of items for monthly Post Review. Selection of unit for post review by 132

Ch.V - Page 10 of 39

Section Officer/Asstt. Audit Officer and by Branch Officer will be made by the Branch Officer of the concerned Headquarters section. Selection for original audit, post review by Branch Officers is done by the Branch Officers themselves. In the event of Post Review of any one of the sub-units of a unit becoming infructuous owing to no vouchers having been audited in the month to which the Post Review relates, no alternative selection should be made for the sub-unit. Instead, the vouchers audited in the earlier months preceding the one to which Post Review related may be taken up duly recording the facts in the Post Review Register. In case, no vouchers are available for Post Review in the preceding months also, the Post Review should be taken up and completed in the subsequent months when the vouchers of that category come up for audit. The non-completion of a sub-unit in the original month of selection will not be considered as arrears in the Post Review in that month. (Para 154 of Railway Audit Manual). One half of the Post Review done by the Branch Officer should be devoted to a recheck of the current review done by the Section Officer/Asstt. Audit Officer. In terms of Para 154 of Railway Audit Manual, the entire Audit work done in a section should be Post Reviewed by Section Officer/Asstt. Audit Officer of the section concerned. The register should be put up to the Principal Director of Audit/Director/Deputy Director only when important defects are noticed. In addition to the normal Post Review, special Post Review is to be done occasionally in terms of Para 162 of Railway Audit Manual. The section selected and the Section Officer/Asstt. Audit Officer nominated for such Post Review by Principal Director of Audit will be intimated by COR Section in the first week of the month in which the Post Review is to be done. The results of Post Review carried out in terms of Para 162 of Railway Audit Manual will be submitted to Principal Director of Audit (through Branch Officer concerned) in the Post Review Register maintained in the respective sections soon after completion of the Post Review in all cases. The existing procedure of selection of Post Review units and vouchers therefrom by Branch Officers of the respective sections will be applicable in toto to Post Review arranged by Principal Director of Audit. The Post Review Register should be maintained in the proforma given in Para 162 of Railway Audit Manual. The original Audit/Current Review/Post Review Registers of Branch Officers and Original Audit/Current Review Registers of Section Officers/Asstt. Audit Officers should be submitted to Principal Director of Audit/Director/ Deputy Director only when important defects are noticed. The upto-date position of arrears in Original Audit/Current Review/Post Review and clearance thereof should invariably be indicated in the record of submission of the registers monthly. However, these registers should be put up to Principal Director of Audit half-yearly by 10th of April and October each year bringing out the extent of arrears, if any. In so far as Sr.Audit Officers/Audit Officers/Asstt. Audit Officers at outstations are concerned, they will submit these registers to Deputy Director/Director/Principal Director of Audit during their local visits, in addition to their submission to Principal Director of Audit half yearly.

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517. Raising and pursuance of objections: 1(a): The instructions contained in Chapter XXII of the Railway Audit Manual and Chapter I of Section VII of the Manual of Standing Orders (Audit) should be followed. 1(b): Objection having a high money value as well as cases involving serious procedural irregularities having considerable financial impact and D.P. potential are to be taken up through Special Letters categorised as 'A'. While submitting the proposals to Deputy Director/Director for issue of Special Letters, Branch Officers must specifically indicate the grounds on which a particular objection has been recommended for issue as a Special Letter falling under Category 'A'. It should be ensured that objections proposed to be included in Special Letters Category 'A' are thoroughly examined and supporting documents are kept in the file to facilitate expeditious issue of the same. All Special Letters Category ‘A’ (Potential Draft Para cases) should be routed through Sr. Audit Officer/Reports who submits the same after examination to PDA through Group Officer. The covering letter for issue of Special Letter Category 'A' should be in the format(Annexure-IV). With regard to Category 'A' Special Letters proposed by outstation Divisions/Units the recommending Division/Unit should indicate the No. to be assigned to the proposed Special Letter so that, after approval, copies to be issued to the FA&CAO/HOD and respective DRMS can be straightaway issued by the PA’s to Group Officers. The Division's/Unit's file with office copy of the Special Letter and copy intended for Accounts Officer of the Division/Unit will thereafter be duly returned to the Division/Unit concerned. The Divisional Audit Officer/Unit Audit Officer will then sign the copy meant for his counter-part in Accounts and issue the same forthwith. These Special Letters relating to Divisions/Units should continue to be included in the objection register of the Division/Unit Accounts Office. As regards consolidation of objections/irregularities of similar nature, the following procedure is to be followed. In order to avoid duplication of the Special Letter on the same subject, copies of all the Special Letters (Category 'A') are to be sent to Headquarters section with a view to projecting the entire position obtaining on the Railway and also on account of fixation of monetary limit for processing into D.P. In the case of any individual irregularity, if the Division/Unit had raised any objection based on the extant orders and rules and the matter could not be settled locally, such cases may be referred to the Headquarters Section concerned which, after examination of the position on the Divisions/Units, may take up the issue at Headquarters level for following a uniform procedure on the entire Railway. Copies of Special Letters Category 'A' should be endorsed to COR Section by all sections to enable them to monitor the progress of such Special Letters COR Section will maintain a record and submit the Register by 10th of every month to Principal Director of Audit, through Director/Deputy Director. Copies of the Special Letters Category 'A' should also be endorsed to Sr.Audit Officer/Audit Officer(Reports), PAs to Director/Deputy Director, besides COR Section and to Headquarters Section concerned when required. Replies received to the Special Letters should be examined and the cases processed for DPs. Cases where no reply/remarks are received within the stipulated period should also be processed for DPs. In all such cases, draft DPs may be submitted to Reports Section through the Group Officer. Objections of lesser importance but worth issuing as Special Letter 'B' may be issued by the Branch Officers in the form of D.O. letters after getting the same approved by 134

Ch.V - Page 12 of 39

Principal Director of Audit. The Special Letters Category 'B', Part I Inspection Reports and Part I Audit Notes should be pursued strictly on the lines envisaged in Para 517.5 of the Office Manual. All outstanding objections over 6 months old have to be specifically brought to the notice of HOD/Divisional Railway Managers with copies to the FA&CAO/Sr.DAO concerned by the Director/Deputy Director in proforma in existence, through D.O. letter for approval and issue by 10th July and 10th January every year in respect of the position outstanding on 30th June and 31st December. Similarly, all objections outstanding over 1 year as on 31st March, should be listed in Proforma already prescribed and the same sent to COR Section by 10th April for issue of a D.O. letter from Principal Director of Audit to General Manager. COR Section will consolidate the outstanding objections and propose D.O.letters by 20th April. While submitting the D.O. letters for approval of Group Officer as well as in the reports to be sent to COR, the action taken in compliance with General Manager's instructions for clearance of outstanding Audit Objections contained in D.O. Lr.No.A/EF/AOO/Vol.IV, dated 25/30.9.91 circulated under COR Section's Lr.No.Au/COR/DP/III/6/Vol.X dated 28.1.92 should also be indicated. In the case of reviews (Local and Central) the existing procedure of issuing them straightaway as DPs to Zonal Railway Administration and Railway Board with the approval of Principal Director of Audit will continue. Authority :

1) Au/COR/I/Vol.III/435, dt.9.2.89. 2) -do/72 dt.9.5.91 3) -dodt.13.8.91 4) -do- /Vol.IV dt.5.2.92 5) -dodt.13.4.92 6) -dodt.12.3.93 7) P.O.O.No.115 dt.1.8.1990. 8) Au/Reports/11-10/2006-07 dated 18.10.2006

2. The objections noticed by the Auditor/Senior Auditor in the course of audit should be put up to the Section Officer/Asstt. Audit Officer in the form of an audit note along with the relevant documents. After scrutinising the points with reference to the documents, the irregularities noticed which are of minor nature requiring some clarification such as calling for certificates, receipt schedules and other wanting documents may be included in a Draft Audit Note and issued by the Section Officer/Asstt. Audit Officer vide Para 466 of Railway Audit Manual. Part-II Audit Notes/Inspection Reports are issued over the signature of S.O./A.Au.O after obtaining the approval of B.O. Part-I Audit Notes/Inspection Reports/Special Letters may be put up to the Pr.D.A. for approval. Only very important objections which are likely to yield material for Railway Audit Report should be generally taken up through special letters. In case the irregularities pointed out through Rough Audit Notes are not set right/replies not received within a month, the matter should be pursued vigorously at appropriate higher level with the Accounts Office. 3. Items of objections in Part II Audit Notes and Inspection Reports wherein adequate action has been taken by the Accounts Office may be removed from the register of outstanding objections by the Section Officer/Asstt. Audit Officer. All Part II Audit Notes should be reviewed half-yearly with reference to the Accounts Office files and the cases where adequate action has not been taken pursued with the Accounts Officer. Cases of undue delay in disposal of important objections should be brought to the notice of the Principal 135

Ch.V - Page 13 of 39

Director of Audit. As in the case of all periodical items, review notes covering the halfyearly review of Part II objections may be submitted to the Branch Officer for his scrutiny in terms of the provisions contained in Para 471 of Railway Audit Manual. 4. All the proposals for closure of Special Letters category 'A' & 'B' which are subsequently issued as Draft Paras or where recoveries pointed out therein have been effected/agreed to be effected and complete final action has been taken by the Railway Administration should be put up for approval of Principal Director of Audit in the relevant file with a record note explaining the reasons why they are being considered for final settlement. All Part I Inspection Reports and Audit Notes where the Railway Administration has taken appropriate action may be closed by the Branch Officers themselves as per the procedure in vogue. (P.O.O. No.136 dated 22.6.1998). 5. To ensure prompt finalisation of the objections, all special letters should be issued only as D.O. letters. In respect of Potential Draft Paragraph cases, special letters and other important objections, D.O. reminders should be issued monthly, the first 3 at Branch Officer's level, next two at Director/Deputy Director's level and thereafter at Principal Director of Audit's level. Once the correspondence has been taken up at a higher level, it should not be brought back to lower level (Para 1 of the Minutes of the Meeting held between Principal Director of Audit and Branch Officers on 29.1.1987 and 30.1.1987). 518. Recovery Register: Auditing sections should maintain a register to note down particulars of recoveries effected or agreed to be effected by the Railway Administration at the instance of audit. The register should be maintained in the following format:

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1. Name of the Unit 2. Amount pointed out by Audit for recovery a. As a result of audit of transactions checked by Accounts b. Other than those mentioned in Column 2 3. Amount actually recovered or agreed to be recovered a. As a result of audit of transactions checked by Accounts Col. 2 i. Amount actually recovered ii. Not yet recovered b. Other than those mentioned in Col. 4 & Col. 5 i. Amount actually recovered ii. Not yet recovered c. Amount recovered as a result of further review by Accounts i. Amount actually recovered ii. Not yet recovered 4. Total a. Amount actually recovered (Col. 4 + 6 + 8) b. Not yet recovered (Col. 5 + 7 + 9) 5. Amount converted into crore (Annexure enclosed) Whenever advice of closure of an audit note is issued to the Accounts Office, the total amount of recovery noted in the register should also be mentioned. At the end of the financial year, the total amount recovered or agreed to be recovered should be got accepted by the Accounts Department and a statement of recoveries effect may be furnished to COR section before 1st week of June in the format given in Annexure VI, duly vetted by Accounts. While forwarding the statement of recoveries, sections/units offices may also furnish a brief narration in an annexure of each of the more important nature of the cases (say of more than Rs. 25,000/- each) indicating the nature of irregularity, dates of the original objection and acceptance and the period to which the recovery relates, duly vetted by the Accounts counterpart. The statement should be signed by the Audit Officer/Sr.Audit Officer and the Accounts Officer before forwarding the same to COR section. Important and interesting results of audit should be put up along with the file to the Principal Director of Audit through the 'Coordination' section in the form of a Para for the Register of Audit Activities' for approval. 519. Review of working of the Accounts Department: The review of Accounts Office work will be carried out personally by the Section Officer/Asstt. Audit Officer incharge of the section along with audit of March Accounts with reference to the instructions contained in Para 135 of Railway Audit Manual, Para 56 of Secret Memorandum of Instructions regarding Extent of Audit (Railway Audit). The points noticed should be recorded in the register prescribed for this purpose vide Annexure V and submitted to the Branch Officer by 30th September every year. The points considered important and to be taken up through Special Letter/Part.I Audit Note should be incorporated in a note to be submitted to Deputy Director/Director/Principal Director of Audit for approval and taken up with the respective

137

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Accounts counter parts. After issue of the objections, reference to Audit Note No./Special Letter and date should be indicated against various items in the Register. The Branch Officers should then send to COR Section, a report by 15th October every year in the proforma prescribed in Para 56 of Secret Memorandum of Instructions bringing out whether there have been any major system failures in internal check of any other items which are considered important to be reported to Financial Adviser and Chief Accounts Officer at Principal Director of Audit's level. The Branch Officer should also furnish a certificate indicating that the review done for the year covers all the items prescribed as per Railway Audit Manual, Secret Memorandum of Instructions and provisions of Para 519(3) O.M. & any other instructions issued by this office from time to time. Important items from the registers should also be considered for inclusion in the efficiency of internal check vide Para 1303 of O.M. At the commencement of every year, a list of all items to be seen in the course of the annual review of Accounts Office work should be compiled by the section concerned and noted in the Register of Review of Accounts Office work. The Branch Officer should ensure that this list not only covers all items which should be reviewed in the course of this work but also that all the sub-sections of the Accounts Office concerned are brought within its scope. The list of items should be compiled with reference to the Accounts Office Manual wherever necessary and P.O.Os. issued by the Financial Adviser and Chief Accounts Officer. The review should also cover an examination of the following items in addition to the items given in the Annexure to Chapter V of the Memorandum of Instructions. i.

Register of Audit Notes and Inspection Reports.

ii.

Register to watch the expenditure on temporary Group 'D' posts created by Divisional Railway Managers without financial concurrence under powers delegated vide item i(b) of Part 'H' of Schedule of Powers.

iii.

Railway Board's Inspection Reports.

iv.

Register of Review of Permanent Sanctions (Para 809-AI).

v.

Accounts Office Balance Sheet (Para 2923 of the Indian Railway Code for the Accounts Department).

vi.

Review of registers containing the lists of specimen signatures of the Gazetted Officers authorised to sign the bills. Balance Sheet for one month should be checked with initial records in addition to general review, to ensure that the postings are correct. It should also be seen that amounts recoverable have been billed for correctly and promptly and suitable action has been taken for the realisation of old outstandings.

vii.

Review of Bills Recoverable Register (Paras 1139 and 1140 of the Indian Railway Code for the Accounts Department).

138

Ch.V - Page 16 of 39

This register should be reviewed to ensure that bills for dues recoverable from different parties have been preferred timely and correctly and outstandings do not relate to very old periods. The postings should also be checked with initial records. viii.

Recovery of electricity charges from staff and outsiders. The working of the revised procedure for watching recovery of electrical energy charges, introduced in Railway Board's letter No.63/AC-II/Dir(Spl)/22, dated 29.1.1966, should be examined critically to see that dues are not allowed to accumulate and that the system is working efficiently.

ix.

Review of working of the revised system of accounting introduced by the Railway Board. It should be examined whether the revised system of maintaining Traffic Accounts, Rent Rolls, Rent Return Account of Residential Buildings and of watching recoveries of advances, is working efficiently and that there are no loop holes by which some major omission/lapses could occur or remain unnoticed. In respect of items for which the extent of internal check has been relaxed by the Railway Board, it should be seen that such relaxation has not affected the efficiency of internal check.

x.

Important cases should be reviewed in the course of annual review of the working of the Accounts Office. It should also be ensured that post check of paid bills (c.f. Para 818-AI) has not fallen into arrears. (ADAI(R)'s letter No.1458-RAI/8-5/67 dated 5.5.1967).

xi.

Review of the arrangements in the Accounts Office for supply of P.O.Os. Joint Accounts and Executive P.O.Os. etc. issued during the year to Audit and to ensure whether those issued during the period under review have actually been received and scrutinised in 'Audit'.

On receipt of reports from all sections, COR section will examine and submit a note to the Deputy Director/Director/Principal Director of Audit indicating the important points which may be considered for being taken up with Financial Adviser and Chief Accounts Officer. During internal audit of the Sections, the Internal Audit Party should also scrutinise the Register of Review of Accounts Office work besides other registers maintained in the sections to see whether all the items, as prescribed, had been covered and point out omissions to the notice of section. Common items of omissions noticed will also to be circulated to all units for remedial action. 520. Review of Register of Losses: Register of losses maintained in the Accounts Office should be reviewed to the extent prescribed. Copies of sanctions of the General Manager for write-off of losses irrespective of the subject to which they relate will be received by this office either from the General Manager or the Department obtaining the General Manager's sanction according to single file system.

139

Ch.V - Page 17 of 39

'Write off' sanctions received should be noted in a separate register year-wise to facilitate checking whether all write off sanctions issued in a year are included in the Appropriation Accounts. Delays in receipt of reports or 'write off' sanctions should be taken up promptly with the Administration. 521. Office Manuals and Procedure Office Orders and corrections thereto: The scrutiny of the P.O.Os. issued by the Financial Adviser and Chief Accounts Officer will devolve on the corresponding Headquarters Audit Section. P.O.Os. issued by the Unit Accounts Officers will be scrutinised by the Unit Audit Officers concerned. It should be watched that Procedure Office Orders issued by the Accounts Offices are received in the Audit Offices without omission. (Para 120 of Railway Audit Manual).

140

Ch.V - Page 18 of 39

Annexure I (Para 510) COVER: OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT SOUTH CENTRAL RAILWAY SECUNDERABAD (______________) Section Selection-cum-Audit Completion Register To be put up monthly to B.O. on 10th. Authority: Para 510 of the Office Manual To be preserved for 5 years RECORD OF SUBMISSION: Month Date of of SubmiAudit ssion (due date is 10th)

1.

2.

Selection of vouchers due for audit for the month has been completed ----------------Dated initials of Ar./Sr.Ar./ S.O./A.Au.O.

Certified that all vouchers/documents selected for audit and review have been audited and reviewed and those required to be submitted to SO/ AAuO/BO have been submitted except those which have been shown as outstanding in the register.

3.

4.

Initials of ----------------Ar/Sr.Ar/S.O. /A.Au.O./ B.O.

5.

INDEX Sl. No. Particulars of Item

Page No.

1-M 2-Q 3-HY 4-Annual

141

Ch.V - Page 19 of 39

Annexure I (Para 510) Contd. AUDIT ITEM:_________________ Extent of Audit: Authority: Month Month of of accounts Audit (1)

(2)

Date of completion of Audit (7)

Details of vrs. selected (6)

Particulars of vouchers, documents etc. Au.6 Co.7 Amount No. & No. & Date Date (3) (4) (5)

Dated initials of Auditor/Sr.Auditor (8)

Remarks (9)

142

Ch.V - Page 20 of 39

Annexure II (Para 511) COVER: OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT SOUTH CENTRAL RAILWAY SECUNDERABAD Section:_______________ Progress Report Register Authority: Para 511 of the Office Manual To be put up to B.O. monthly on 3rd. (To be preserved for 2 years) PROFORMA: Sl. No.

1.

Autho- Parti- Arrears rity culars at the of end of the audit previous items month 2. 3. 4.

Work done during the month 5.

Arrears at the end of the current month 6.

Remarks

7.

1-M 2-M Etc.

Current Review: by Section Officer/Asstt. Audit Officer Original Audit: by Section Officer/Asstt. Audit Officer Original Audit: by Branch Officer Post Review: by Section Officer/Asstt. Audit Officer Post Review: by Branch Officer Note: In respect of quarterly, half yearly and yearly items, Cols. 4, 5 and 6 should indicate position for quarterly, half-yearly and yearly as the case may be. …………

143

Ch.V - Page 21 of 39

Annexure III (Para 512) MONTHLY REPORT OF THE STATE OF WORK IN _____________________ SECTION/DIVISIONAL AUDIT OFFICE OR THE MONTH OF ________________ (a) Items of work/return etc. shown as in arrears in the last monthly report(see section II) and the extent to which they have cleared, with reasons for items still outstanding: Nature of arrears/name of return

(a)

Due date

Actual date of despatch in respect of items cleared

been

Reasons for delay in respect of items still outstanding

Returns/registers not dispatch /submitted/received or dispatch d/submitted/received late during the month:

Name of return/register

To/from whom due

Due date

Actual date of dispatch/ receipt

Reasons for delay and probable date of dispatch/action taken to expedite the receipt

© Occasional Returns due in the month of not submitted / submitted late in the month Details of outward references outstanding for 6 months and more and action taken for their clearance: Year No. of items Action taken for clearance

144

Ch.V - Page 22 of 39

-2II. Sl. No.

Inward References: Particulars

Ordinary letters (B – Dak)

CAG/Rly Bd. Lrs. (A – Dak)

DETAILS OF 6 & 7 -----------------------------------------------------------------------------Sl. Letter No. From whom Subject Reasons No. and date received for delay in disposal

01. No. of letters outstanding as per last report. 02. Total number of letters received during the month. 03. TOTAL (1 + 2) 04. No. of letters disposed of 05. Balance Outstanding 06. Number of letters outstanding for more than 1 month, 2 months, 3 months etc. 07. No.of CAG’s letters for which final replies are yet to be sent 08. Particulars of outstanding tour notes of Principal Director of Audit/ Director/Deputy Director

145

Ch.V - Page 23 of 39

-3III (a) Pending Cases: (a) Outward References: (Details of cases pending over 6 months and action taken to clear the cases are to be indicated):

IV.

Arrears In Audit Work: A) External i)

Particulars

Arrears due to arrears in Accounts Office: Total Mandays ________________________________ Month of Month of Account Audit (Year-wise breakup may be indicated)

No. of vouchers/ documents

Arrears in terms of mandays

Probable date of clearance

Reasons for non-clearance and efforts made

146

Ch.V - Page 24 of 39

-4ii) Particulars

Arrears due to non-receipt of vouchers/documents. Total Mandays ________________________ Month of Account

Month of Audit

Number of vouchers/ Documents

Arrears in terms of mandays

Probable date of clearance

Reasons for non-clearance and efforts made

(Year-wise and item-wise details may be indicated below together with man-days against each item)

147

Ch.V - Page 25 of 39

-5B) Internal: Total Man-days: ___________________________ i)

Detailed report on each item of arrears(i.e. Inspections and Central Audit in Mandays may be furnished here).

ii)

Date of selection/completion of Original Audit/Post Review by B.O./A.Au.O/S.O.

Officer doing Original Audit/Post Review

ORIGINAL AUDIT -------------------------------------------------Date of Selection Date of Completion

POST REVIEW -------------------------------------------------Date of Selection Date of Completion

Audit Officer/Sr.Audit Officer Section Officer(I)/ Asstt. Audit Officer(I) Section Officer(II)/ Asstt. Audit Officer(II) Post review in terms of Para 152 of Railway Audit Manual

148

Ch.V - Page 26 of 39

-6I.

Inspections: a) Progress of Inspection:

No. of Inspections in arrears on the last day of the previous month

1

Inspections to be conducted during the month as per approved programme ----------------------------------Number Name of Offices 2

Inspections actually completed during the month -------------------------------------Number Name of Offices

3

No.of Inspections in arrears on the last day of the month(1+2-3)

4

Reasons for the arrears

5

149

Ch.V - Page 27 of 39

-7b) Issue of Inspection Reports: Arrears in the issue of Inspection Reports on the last day of the previous month

Reports falling due to be issued during the month in respect of the offices inspected -------------------------------------Number Name of Offices

Dates of Audit conducted

Date of submission of I.R. to Group Officer/ Pr.D.A.

Date I.R. passed by G.O./ Pr.D.A.

Date of issue of I.R.

Brief reasons for the delay

150

Ch.V - Page 28 of 39

-8II.

(a) Outstanding Part.I Inspection Reports, Part.I Test Audit Notes and Special Letters (N.B.: Additional sheet may be attached if the space provided is found to be insufficient). i) Part.I Inspection Reports:

Year

Opening Balance ----------No. Paras

Issues -------------No. Paras

Details of the offices on which the Part.I Inspection Reports issued in the month to be indicated -----------------------------------------Name of Office

Closure ----------------No. Paras

Closing Balance ------------------No. Paras

Money Value (in lakhs of Rupees)

151

Ch.V - Page 29 of 39

-9Case No.

Date of latest reminder/ Interim reply received

Level at which reminder was issued

152

Ch.V - Page 30 of 39

-10ii) Part.I Audit Notes: Year

Opening Balance -------------No. Paras

Issues --------------No. Paras

Closure

Closing Balance --------------- -----------------No. Paras No. Paras

Money Value (in lakhs of Rs.)

Case No.

Date of latest reminder and level at which issued/ Interim reply received.

153

Ch.V - Page 31 of 39

-11iii) Paras of Part-I Inspection Reports/Audit Notes closed during the month: No. assigned to each Para closed during the month while issuing the original objection

Money value of each Para closed during the month

a) Part-I Inspection Reports.

b) Part-I. Audit Notes:

154

Ch.V - Page 32 of 39

-12(iv) Special Letter Category - 'A': Year

Opening Balance -------------No. Paras

Issues --------------No. Paras

Closure

Closing Balance --------------- -----------------No. Paras No. Paras

Money Value (in lakhs of Rs.)

Case No.

Status of the case

155

Ch.V - Page 33 of 39

-13(v) Special Letters Category - 'B': Year

Opening Balance -------------No. Paras

Issues --------------No. Paras

Closure

Closing Balance --------------- -----------------No. Paras No. Paras

Money Value (in lakhs of Rs.)

Case No.

Date of latest reminder and level at which issued/ Interim reply received.

156

Ch.V - Page 34 of 39

-14(vi) Paras of Special Letters closed during the month: No. assigned to each Para closed during the month while issuing the original objection

Money value of each Para closed during the month

a) Special Letters/Category 'A'

b) Special Letters/Category 'B'

157

Ch.V - Page 35 of 39

-15VIII (b) Outstanding Inspection Reports (Part-II) and Test Audit Notes(Part-II): INSPECTION REPORTS(PART-II): Period

Opening Balance -------------No. Paras

Issued --------------No. Paras

Cleared

Closing Balance --------------- -----------------No. Paras No. Paras

Money Value (in thousands of Rs.)

Action taken for the clearance.

Cleared

Money Value (in thousands of Rs.)

Action taken for the clearance

TEST AUDIT NOTES(PART-II): Period

Opening Balance -------------No. Paras

Issued --------------No. Paras

Closing Balance --------------- -----------------No. Paras No. Paras

158

Ch.V - Page 36 of 39

-16Information of arrears (in mandays) Section No.

Internal ------------------------------Arrears at the end of Previous Current M / Qr M / Qr

Increase (+) Decrease(-)

External ------------------------------Arrears at the end of Previous Current M / Qr M / Qr

Increase (+) Decrease(-)

VIA(i) VI A (ii) VI B VII (A) VII (B) I certify to the best of my knowledge and belief that the work is upto-date and test audit and other work required to be completed upto the end of the month/quarter has been completed with the exception of the arrears detailed above.

Section Officer/ Asstt. Audit Officer

Signature of Divisional Audit Officer/ Audit Officer/Sr.Audit Officer Dated:

S.O./A.Au.O.(COR)

Senior Audit Officer(COR)

Deputy Director/Director

Principal Director of Audit

159

Ch.V - Page 37 of 39

Annexure IV' to Para 517 FORMAT FOR ISSUE OF SPECIAL LETTER - CATEGORY 'A' (Not to be typed in the fair copy) Dated : D.O.No.Au/ Sub:Dear Shri Please find enclosed a special letter on the subject mentioned above. 2. The case relates to - (Brief Summary of the objection to be incorporated). 3. As the point raised in the special letter is being considered for comment in the Audit Report, I shall be grateful if you kindly arrange to have the Special Letter examined and furnish your remarks within two months from the date of issue of the special letter. If no reply is received within the above stipulated period, it will be presumed that the facts, figures and comments contained in this special letter have been accepted as correct by the Railway Administration and the case will accordingly be processed further as draft paragraph. 4. A copy of this special letter is also being forwarded to Shri__________________(Name of the F.A.&.C.A.O. to be filled in), S.C.Railway, Secunderabad and to Shri ____________(HOD/DRM/SCR) _____________ for necessary action. Yours sincerely, PRINCIPAL DIRECTOR OF AUDIT Shri___________________, General Manager, South Central Railway/SECUNDERABAD. Copy together with a copy of the Special Letter mentioned above, forwarded for information and necessary action to:1. Shri__________________(Name of F.A.&.C.A.O. to be filled in) 2. Shri__________________(Name of HOD to be filled in) 3. Shri__________________(Name of DRM to be filled in) DEPUTY DIRECTOR/DIRECTOR

160

Ch.V - Page 38 of 39

Copy to________________________(Name of concerned unit Accounts Officer to be filled in) - for information and necessary action. SR.AUDIT OFFICER/AUDIT OFFICER Copy to Sr.Au.O./COR, S.C.Railway/Secunderabad for information. Copy to Sr.Au.O./Reports, S.C.Railway/Secunderabad for information. Copy to PA to Deputy Director/Director for information. Copy to concerned HQrs. Section(whenever required). SR.AUDIT OFFICER/AUDIT OFFICER

161

Ch.V - Page 39 of 39

Annexure V (Para 519) Register of Review of Accounts Office Work. 1. Code Word

: RAW

2. Authority

: Para 131 of Railway Audit Manual

3. The register should be maintained in the proforma prescribed. 4. The register contains the review report of items already mentioned in Para 56(Chapter V) of Memorandum of Instructions regarding the Extent of Audit besides subsidiary items subsequently introduced. 5. After the results of the review are incorporated in the register, it should be sent to COR section to put up a consolidated position of defects noticed, by 10th October to Principal Director of Audit. Important items from the register should be considered for inclusion in the report on the efficiency of Internal check. 6. Each register should be used for a period of 2 years and preserved for 3 years. RAW OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT SOUTH CENTRAL RAILWAY SECUNDERABAD Section:_______________ For the year:_______________ th

To B.O.: 30 September To P.D.A.: 1st October. To be preserved for 3 years Index

Pages

Review for the year _____________ 162

Ch.V - Page 40 of 39

Review for the year _____________ Entries: S.No. 1.

Particulars

Review Remarks

(A) Items common to all branches etc. (B) Items peculiar to various sections and branches (C) Other items to be reviewed generally (D) Special items ………….

163

Ch.V - Page 41 of 39

ANNEXURE – VI Para 518 Statement showing Summary of Recoveries effected at the instance of Audit 1. Serial Number 2. Particulars of the case 3. Amount pointed out by Audit for recovery (b)

as a result of audit of transactions already checked by Accounts Office

(c)

other than those mentioned in column (a)

4. Amount actually recovered or agreed to be recovered by the Financial Adviser and Chief Accounts Officer (b)

as a result of audit of transactions already checked by Accounts Office

other than those mentioned in column (a) 5. 6. 7.

Amount recovered as a result of further review by the Administration. Reference to the Audit Note and the acceptance of the Financial Adviser and Chief Accounts Officer. Initials of the Branch Officer.

164

Ch.V - Page 42 of 39

MONTHLY REPORT OF THE STATE OF WORK IN _____________________ FOR THE MONTH OF ________________ I.

(a) Items of work/return etc. shown as in arrears in the last monthly report (see section II) and the extent to which they have been cleared, with reasons for items still outstanding:

Nature of arrears/name of return

I.

Due date

Actual date of despatch in respect of items cleared

Reasons for delay in respect of items still outstanding

(b) Returns/Registers not despatched/submitted/received or despatched/submitted/received late during the month:

Name of return/register

I.

To/from Whom due

Due date

Occasional returns due for the month: Ref. No. and Date

Due to

Actual date of despatch/

Due Date

Reasons for delay and probable date of despatch/action taken to expedite the receipt

Date of Submission

Reasons for delay

165

Ch.V - Page 43 of 39

-2Month II. Sl. No.

INWARD REFERENCES: Particulars

Ordinary letters (B - Dak)

CAG/Rly Bd. Lrs. (A - Dak)

DETAILS OF 6 & 7 -----------------------------------------------------------------------------Sl. Letter No. Received Subject Reasons No. and date From for delay disposal

01. No. of letters outstanding as per last report. 02. Total number of letters received during the month. 03. TOTAL (1 + 2) 04. No. of letters disposed off 05. Balance Outstanding 06. Number of letters outstanding for more than 1 month, 2 months, 3 months etc. 07. No.of CAG's letters for which final replies are yet to be sent 08. Particulars of outstanding tour notes of Principal Director of Audit/ Director/Deputy Director

166

Ch.V - Page 44 of 39

-3Month III. (a) PENDING CASES: (Details of cases pending over 6 months and action taken to clear the cases are to be indicated):

III (b) OUTWARD CORRESPONDENCE (Details of cases pending over 6 months and action taken to clear the cases are to be indicated):

IV.

ARREARS IN AUDIT WORK: A) External i)

Particulars

Arrears due to arrears in Accounts Office: Total Man days ________________________________

Month of Month of Account Audit (Year-wise breakup may be indicated)

No. of vouchers/ documents

Arrears in terms of man-days

Probable date of clearance

Reasons for non-clearance and efforts made

167

Ch.V - Page 45 of 39

-4Month ii) Particulars

Arrears due to non-receipt of vouchers/documents. Total Man-days ________________________

Month of Account

Month of Audit

Number of vouchers/ Documents

Arrears in terms of man-days

Probable date of clearance

Reasons for non-clearance and efforts made

(Year-wise and item-wise details may be indicated below together with man-days against each item in respect of each Section)

168

Ch.V - Page 46 of 39

-5Month B) Internal: Total Man-days: ___________________________ i)

Detailed report on each item of arrears (i.e. Inspections and Central Audit in Man-days may be furnished here).

ii) Date of selection/completion of Original Audit/Post Review by B.O./A.Au.O/S.O. Officer doing Original ORIGINAL AUDIT POST REVIEW CURRENT REVIEW Audit/Post Review ----------------------------------------------------------------------------------------------------------------------------Date of Date of Date of Date of Date of Date of Selection Completion Selection Completion Selection Completion Audit Officer/Sr.Audit Officer Section Officer(I)/ Asstt. Audit Officer(I) Section Officer(II)/ Asstt. Audit Officer(II) Post review in terms of Para 156 of Railway Audit Manual

169

Ch.V - Page 47 of 39

-6Month V.

INSPECTIONS:

a) Progress of Inspection (Executive Office & R.M.W) No. of Inspections Inspections to be conducted Inspections actually completed in arrears on the last during the month as per during the month day of the previous approved programme -------------------------------------month ----------------------------------- Number Name of Offices Number Name of Offices 1 2 3

Date of No.of Inspections Inspection in arrears on the ---------------- last day of the month(1+2-3) From To 4

5

Reasons for the arrears

6

Executive Offices

R.M.W.s

170

Ch.V - Page 48 of 39

-7Month b) Issue of Inspection Reports: (Details of Offices against which NIL Reports are proposed and approved also should be given) Arrears in the Reports falling due to be issued Dates of Date of Date I.R. Date of Brief issue of Inspection during the month in respect of Audit submipassed issue reasons Reports on the last the offices inspected conducted ssion of by G.O./ of I.R. for the day of the previous -------------------------------------I.R. to Pr.D.A. delay month Number Name of Offices From-To Group Officer/ Pr.D.A. __1__________________2_______________3___________4____________5___________6____________7__________8_______________

C. Details of offices against which NIL Reports are proposed & approved.

171

Ch.V - Page 49 of 39

-8Month VI.

Year

(a) Outstanding Part.I Inspection Reports, Part.I Test Audit Notes and Special Letters (N.B.: Additional sheet may be attached if the space provided is found to be insufficient). i) Part.I Inspection Reports: Opening Issues Closure Balance -------------- -------------------------No. Paras No. Paras No. Paras

Closing Balance ------------------No. Paras

Money Value (Rs)

Details of the offices on which the Part I IRs were issued during the month. Office/ Report No.

172

Ch.V - Page 50 of 39

-9Outstanding Part. I Inspection Reports (Complete list may be indicated) Sl. No.

Part. I IR No. and Date

Money Value

Month Date of Interim reply received

Date of Reminder

173

Ch.V - Page 51 of 39

-10ii) Part.I Audit Notes: (Year-wise details may be indicated in respect of each section separately) Year Opening Issues Closure Closing Money Details of the offices on which the Part. I ANs Balance Balance Value were issued during the month -------------- --------------- --------------- ------------------ (in Rs) Report No. Office No. Paras No. Paras No. Paras No. Paras

174

Ch.V - Page 52 of 39

-11Month (Outstanding Part. I Audit Notes – (Complete list may be indicated in respect of each section) Sl. No. Part. I AN No. and Date Money Value Date of Interim reply received

Date of Reminder

175

Ch.V - Page 53 of 39

- 12 iii) Paras of Part-I Inspection Reports/Audit Notes closed during the month: No. assigned to each Para closed during the month while issuing the original objection

Money value of each Para closed during the month (in Rs)

a) Inspection Reports

b) Audit Notes

176

Ch.V - Page 54 of 39

-13Month (iv) Special Letter Category - 'A': Year

Opening Balance -------------No. Paras

Issues --------------No. Paras

Closure

Closing Balance --------------- -----------------No. Paras No. Paras

Money Value (in lakhs of Rs.)

Case No.

Status of the case

177

Ch.V - Page 55 of 39

-14Month (v) Special Letters Category - 'B': Year

Opening Balance -------------No. Paras

Issues --------------No. Paras

Closure

Closing Balance --------------- -----------------No. Paras No. Paras

Money Value (in lakhs of Rs.)

Case No.

Date of latest reminder and level at which issued/ Interim reply received.

178

Ch.V - Page 56 of 39

-15Month (vi) Paras of Special Letters closed during the month: No. assigned to each Para closed during the month while issuing the original objection

Money value of each Para closed during the month

a) Special Letters/Category 'A'

b) Special Letters/Category 'B'

179

Ch.V - Page 57 of 39

-16Month VIII (b) Outstanding Inspection Reports (Part-II) and Test Audit Notes (Part-II): INSPECTION REPORTS (PART-II): Period

Opening Balance -------------No. Paras

Issued --------------No. Paras

Cleared

Closing Balance --------------- -----------------No. Paras No. Paras

Money Value (in Rs.)

Action taken for the clearance.

180

Ch.V - Page 58 of 39

- 17 (2) TEST AUDIT NOTES (PART-II): Period

Opening Balance -------------No. Paras

Issued --------------No. Paras

Cleared

Closing Balance --------------- -----------------No. Paras No. Paras

Money Value (in Rs.)

Action taken for the clearance

181

Ch.V - Page 59 of 39

-18Information of arrears (in man-days) Section INTERNAL No. ------------------------------Arrears at the end of Previous Current Mn / Qtr Mn / Qtr IVA(i)

Increase (+) Decrease (-)

EXTERNAL ------------------------------Arrears at the end of Previous Current Mn / Qtr Mn / Qtr

Month Increase (+) Decrease (-)

IVA(ii) IVB V (a) V (b) I certify to the best of my knowledge and belief that the work is upto-date and test audit and other work required to be completed upto the end of the month/quarter has been completed with the exception of the arrears detailed above. I certify that data base of Special Letters / Part. I IR / AN have been updated upto (month) ______________ (Year) ____________

Section Officer/ Asstt. Audit Officer

Section Officer / Asst. Audit Officer

A.Au.O.(COR)

Branch Officer Dated:

Senior Audit Officer(COR)

Group Officer

Principal Director of Audit

182

Ch.V - Page 60 of 39

Statement showing Summary of recoveries effected at the instance of Audit for the year 2006-07 Railway _____________________________ Name of the Unit

1

Amount pointed out by Audit for recovery Other As a than result of those audit of transactio mentione d in ns checked column 2 by Accounts 2 3

Amount actually recovered or agreed to be recovered As a result of audit of transactions checked by Accounts Col. 2 Not yet Amount recovered actually recovered

4

5

Total

Amount recovered Other than those as a result of further mentioned in Col. 4 review by Accounts & Col. 5 Not yet Amount Not yet Amount recovere actually recovere actually d recovered d recovered

6

7

8

9

Not yet Amount recovere actually recovered d (Col. 5 (Col. 4 + 6 + 7 + 9) + 8) 10 11

Amount converte d into crore

12

Total for all Units

183

Ch.VI - Page 1 of 30

CHAPTER - VI EXPENDITURE AUDIT 601. General: The audit of expenditure dealt with in this chapter is on works and working expenses of the Railway not covered by the Chapters on (a) (b) (c) (d)

Establishment and Provident Fund Audit, Stores Audit, Workshop Audit, and Traffic Audit

The pattern of work in the Expenditure Audit Sections in the Headquarters, Divisional and Construction Audit Offices generally follows the nature of work done in the corresponding internal checking sections of the Office of the Financial Adviser and Chief Accounts Officer and the subordinate Accounts Offices. As the internal check of the expenditure pertaining to the Heads of Departments' Offices, including Security and Public Relations, the Indian Railways Institute of Signal Engineering & Telecommunications (IRISET) Railway Claims Tribunal and Railway Recruitment Board, Secunderabad, and Centralised Training Academy for Railway Accounts / Secunderabad (C-TARA) is done in the Expenditure Section of the Office of the Financial Adviser and Chief Accounts Officer, audit of the same is done in Expenditure Headquarters Audit Section. The Works Audit comprises audit of (a) (b) (c) (d) (e)

Sanctions Contracts Execution of works Estimates Completion Reports and other miscellaneous items

Important among other items of audit are (a) (b) (c) (d) (e)

Bills for Law charges Accounts of Assisted Sidings Bills for rent on telephones and telegraph wires Payment to local bodies etc. and Fuel Accounts

602. Audit of Sanctions: Detailed instructions regarding audit of sanctions are contained in Paras 132 and 133 of Railway Audit Manual In conducting the audit of expenditure, Audit has not only to see that the expenditure is covered by sanction but also to satisfy itself that the authority according the financial sanction is competent to do so by virtue of powers vested in it by the provisions of the Constitution and of the laws, rules and orders made thereunder or by the rules of delegation of financial authority made by the competent authority. Sanctions to expenditure from the Consolidated Fund of India will be accorded by the President. The power to sanction expenditure may be exercised by the authorities subordinate to the

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President to whom such powers have been delegated by the President. Powers delegated to the General Managers of the Railways are contained in the relevant Railway Codes and Annexure II to Para 505 of Indian Railway Financial Code - Vol.I. Powers delegated by the General Manager to subordinate authorities are contained in the "Delegation of Powers" issued by the General Manager. Sanctions issued by the President, Railway Board, General Manager and authorities subordinate to General Manager come under monthly audit. Sanctions issued by the President and the Railway Board relating to more than one Railway are audited by the Office of Comptroller and Auditor General of India(Railway Wing), and copies forwarded to the Principal Director of Audit. Copies of sanctions pertaining to individual Railways are endorsed to the Principal Directors of Audit by the Railway Board. These and all sanctions issued by the General Manager, South Central Railway, are audited by the Headquarters Audit Sections. In addition, sanctions issued by the Heads of Departments, Deputy Heads of Departments and Divisional Railway Managers are also audited to the extent prescribed. Heads of Departments and Deputy Heads of Departments' sanctions should be generally audited by the Headquarters Audit Sections, which will adopt the following procedure: (a) The sanctions issued by the different authorities i.e., President, Railway Board, General Manager and the Heads of the Departments will be entered separately in a register maintained for the purpose. (b) On or before 5th of each month, Heads of Departments'/Deputy Heads of Departments' sanctions received during the previous month will be put up to the Branch Officers along with the register for selection. (c) The sanctions selected for audit and those to be audited cent per cent will be retained by the Headquarters Audit Sections for further action and other sanctions forwarded to the auditing units concerned for information and record. (d) The sanctions due for audit will be audited by the respective Headquarters Audit Sections with reference to the papers available in the Office of Financial Adviser and Chief Accounts Officer and Departmental Offices and then passed on to the auditing unit concerned for further scrutiny with reference to any papers or information which may be locally available. Any points which the auditing unit may propose to raise in connection with these sanctions, as a result of their scrutiny, should be put up to the Principal Director of Audit through the Headquarters Audit Section concerned. In cases where the financial proposals leading to the sanctions are vetted by the concerned Divisional Accounts Officer/Senior Accounts Officer, it is likely that the papers needed for the audit of sanctions will be available with the Division/Unit Accounts Office. In such cases, the sanctions may be audited by the auditing unit concerned and remarks, if any, furnished to the appropriate Headquarters Audit Section for further action, if necessary. All cases of audit comments arising as a result of such scrutiny of sanctions by unit audit offices which are forwarded to the appropriate Headquarters Audit Sections should also be endorsed simultaneously to Coordination Section. Sanctions issued by the Divisional Railway Managers should be audited by the respective Divisional Audit Offices. All sanctions due for audit should be put up to the Branch Officer after reviewing Accounts/Departmental files, for acceptance. Audit of sanctions received in a month should be completed by the end of the following month.

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Sanctions for write off of loss of stores are received(in terms of Para 1102 of Indian Railway Financial Code Vol.I) in Stores Audit Section irrespective of whether they relate to stock items or charged off stores. As copies of sanctions for write off in such cases are not received in Divisional Audit Offices etc. they are not in a position to ensure that all cases of losses written off during the year and pertaining to the divisions concerned, have been included in the Annual Statement of Losses received from the respective Divisional Accounts Offices for check. In order to facilitate the check in this respect, copies of write-off sanctions relating to other than stock items of stores, i.e., stores charged either to works or to revenue maintenance, will be endorsed by the Stores Headquarters Audit Section to the Divisional Audit Offices etc. concerned, as and when such sanctions are received and dealt with by that section. The Divisional Audit Offices will trace the posting of the sanctions in the Register of Losses maintained by the Accounts Offices before filing the same and make use of these advices at the time of check of the Annual Statement of Losses. Important irregularities noticed in the audit of Railway Board's sanctions should be intimated to Coordination Section before 5th of every month for report to the Comptroller and Auditor General of India(Railways). 603. Review of Permanent Sanctions: In accordance with the provisions of Para 808-AI, sanctions of a permanent nature and sanctions with a long period of currency are required to be reviewed by the Accounts Department periodically. The position regarding the review of sanctions contemplated in Para 808-AI will be indicated by the Accounts Office in their halfyearly Arrear Report to the Railway Board. A register is also maintained in the Accounts Office to indicate the progress of the review of permanent sanctions. This register should be reviewed in audit annually along with the relevant records at the time of Review of Accounts Office work. Sanctions issued by Divisional and Assistant Officers should be reviewed when the expenditure is audited. 604. Audit of Estimates: Audit of estimates as a separate item is not necessary. The audit of estimates should be done at the time of auditing Contractors’ Bills, Completion Reports and Review of Major Works. The scope and justification for works of magnitude should also be reviewed during the audit of sanctions and review of Annual Works Programme. Linking of estimates with contracts may be confined to works contracts only. In respect of contracts reviewed by Sr.Audit Officers/Audit Officers and Asstt. Audit Officers/Section Officers, checking of Estimates may be done by Sr. Audit Officer/Audit Officer and Asst. Audit Officer/Section Officer to the extent prescribed in Appendix to RAM. (C.&.A.G.'s letter No.3428-RAI/8-7/66 Vol.I dated 19.11.1966 and No.2334RAI/8-7/66 Vol.I dated 5.6.1968) (Para 3.3.2 of RRANs) 605. Audit of Completion Reports: Completion Reports of works costing Rs.50 lakhs and above should be audited to the extent prescribed by the Comptroller and Auditor General of India(Railways). Completion Reports of works or schemes of experimental or research nature should be checked cent per cent irrespective of the value of the works. Completion Reports of works costing below Rs.50 lakhs should be audited(to the extent prescribed) during local inspections. Relevant contracts and estimates should also be reviewed when the Completion Reports are audited.

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In addition to the checks prescribed in the Railway Audit Manual, it should also be seen during the audit of Completion Reports that:(a) in the case of construction of quarters, necessary entry is made in the Register of Buildings, (b) departmental charges have been correctly recovered whenever the works are executed for outside parties, (c) necessary entries are made in the Bills Recoverable Register in respect of interest and maintenance charges, wherever these are to be recovered, and (d) that public tariff rates have been charged for the carriage of materials booked for deposit works executed for outside parties. (Para 284 of Railway Audit Manual and Chapter XVII-E) (Para 3.3.7 Report of the Committee on Railway Audit Norms) 606. Tenders and Contracts: Works executed on the Railways through the agency of contractors generally fall under any one of the following categories: (a) Zonal works - such as ordinary repairs and maintenance and other petty works in a particular zone, (b) Special works - such as construction of bridges, quarters, formation of embankments etc, and (c) Supply of building materials, ballast etc. (Chapter XII-E, Chapter VI of Indian Railway Financial Code Vol.I and Para 267 of Railway Audit Manual). (1) Tenders: For obtaining competitive rates for the works to be executed through the agency of contractors, limited or open tenders are invited. Limited tenders are invited for works costing upto Rs.40 lakhs from amongst the contractors borne on the approved list provided that the number of contractors borne on the approved list is not less than ten. The Railway Administration may, however, continue to invite open tenders for works upto Rs.10 lakhs in the following circumstances: (i)

In the event of insufficient response to the tenders from the contractors borne on the approved list,

(ii)

When the work is of a special nature and contractors with requisite experience are not available in the approved list; and

(iii)

When ring formation is suspected.

Notice of invitation of tenders shall be in the form prescribed by the Railway Administration and shall embody the directions issued by the Railway Board from time to time. Until a formal agreement is prepared and executed, acceptance of the tenders shall

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constitute a binding contract between the Railway and the tenderers subject to the modifications as may be initially agreed to and indicated in the letter of acceptance. The tenderer shall be required to furnish, along with the tender, a security in the form of Earnest Money as mentioned in Para 1246-E. General Managers of Railways are authorised to enter into contracts for works or purchase of stores upto the limit of Rs.40 crores in each case. Delegation of General Manager's powers to subordinate authorities for inviting tenders and for executing contracts is contained in the "Schedule of Powers". (2) Pre-qualification of contracts and consultancy of contracts etc.: With a view to improving the administration of contracts and quality of the works executed through contractors, a system of pre-qualifications of tenderers specially in respect of major contracts involving construction of important bridges/structures etc. has been introduced in the Railways vide Railway Board's letter No.85/WI/CT/23/GCC dated 31.1.1986. The guidelines, norms etc. to be followed while considering the tenders are as under: (i) Pre-qualification of tenderers: In respect of (a) works of large value and magnitude or (b) works calling for special expertise, specialised equipment and machinery or (c) works of a complex nature, only reliable and resourceful contractors are to be chosen who have had a good track record in executing works of similar magnitude and complexity. Pre-qualification bids are invited in respect of each specific work to obtain sufficient reliable information for unbiased decision on the contractor's capabilities and capacity to carry out the proposed work. The need to call for pre-qualification bids in any particular case should be decided by the Head of the Department concerned,duly consulting the Associate Finance. The prequalification bid should be invited by advertisement in the most open manner possible. A non-refundable fee of Rs.2,000/- should be charged from the intending tenderers for prequalification in support of their earnestness and sincerity. The Tender Committee will scrutinise the bids received for pre-qualification and make their recommendations to the accepting authority concerned. All the Tenderers who have been pre-qualified should be invited to bid further regular contracts. (ii) Engagement of Consultancy Services: With the rising cost and limited resources, the need to go in for new ideas and obtain advantage of expertise available outside the Railways has been felt by the Railway Administration. With this in view, Railway Administration may obtain the services of consultants for (a) Specialised works and structures, involving use of computers, modern advanced theories and design and use of latest mechanised construction methods (b) Important and prestigeous buildings and structures (c) Special type of roof structures and covering (d) Design and construction of structures involving advanced and complicated technology. For the purpose of selecting the consultants, the guiding principles mentioned in Paras 5, 6 and 7 of Railway Board's letter dated 31.1.1986 mentioned ibid should be followed. General Manager is empowered to accept the consultancy contracts in the first instance upto Rs.25 lakhs in each case subject to Rs.1.5 crores per annum. The selection of consultants is to be at the level of Heads of Departments Committee.

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(iii) Approved list of Contractors: A separate list of approved contractors should be maintained by the Railway Administration for the following five slabs of estimated value of the contract according to their capacity to take up such works: 1. 2. 3. 4.

Class 'A' for works more than Rs.50 lakhs and upto Rs. 1 crore. Class 'B' for works more than Rs. 25 lakhs and upt Rs. 50 lakhs. Class 'C' for works more than Rs. 10 lakhs and upto Rs. 25 lakhs. Class 'D' for works upto Rs.10 lakhs

(Authority: Railway Board’s Lr.No. 94/CE/I/CT/4 dated 17.10.2002) The selection of approved contractors should be carried out by a Selection Committee. The criteria to be followed for considering the enrolment of contractors in various categories is given in Para 4.4 of Railway Board's letter dated 31.1.1986. No earnest money need be paid by the contractors in 'A', 'B' and 'C' Classes at the time of registration. Contractors may be given the choice of either depositing the Earnest Money with each and every tender as per tender conditions or alternatively depositing a Standing Earnest Money. (iv) Two Packet System of tendering: With a view to assessing the tenders technically, without being influenced by the bids, Two Packet System of tendering or rather the two stage procedure with the price bid invited at a later stage in exceptional cases of high value and high complexity works/plant and machinery is adopted in the Railways. In this system, the tenderers are advised to submit their quotations in two sealed envelopes with one cover containing the technical and commercial offers and the other cover containing the financial bids. The technical details and the commercial conditions are evaluated by the Tender Committee and if they are found acceptable the second packet is opened and the tenders are processed for acceptance in the normal manner. The system is to be used restrictively and only with the concurrence of Financial Adviser and Chief Accounts Officer. (v) Payment of advance to contractors: Advances to the contractors during the course of execution of the contract are granted with a view to accelerating the progress of the work. The advance should be limited to 10% of the contract value and should be given in 2 stages. The advance should be recovered through on account bills in instalments. The General Manager is empowered to sanction the advance. No advance should ordinarily be granted in the case of works costing less than Rs.50 lakhs. However, General Manager may grant, in exceptional cases, an advance upto a maximum of Rs.5 lakhs in respect of contract value of less than Rs.50 lakhs if the tenderer insists on payment of such advance as part of his offer. (3) Constitution of Tender Committee: In terms of Para 1255-E, a Tender Committee should be formed for consideration of tenders involving Rs.50,000/- and more. The Constitution of Tender Committees for dealing with the various tenders should be as indicated in Para 1255E. An Accounts Officer will invariably be associated with every Tender Committee. No officer competent to pass orders on the proceedings of the Tender Committee shall be a member of such a committee. Tender Committee proceedings should, besides other relevant information, give the following details: 1. Date and time for receipt of tender and/or opening. 2. Number of forms sold together with date of sale. 3. Number returned duly filled in and received by the stipulated date and time.

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4. Date of meeting of the Tender Committee, and 5. Date upto which quotations are open or valid. (4) Execution of Agreements: After the finalisation of tenders, the Railway Administration should take steps for the execution of agreement with the tenderer whose rate has been accepted. The agreement should be executed in the standard form prescribed. Any special conditions peculiar to the contract should be worded clearly and without ambiguity. In cases where provision has been made for making advance payments to private firms, the agreements should contain a penalty clause for recovery of the amount with interest, in case of non-fulfillment of the terms of the agreement. After the execution of the agreement, the contractor is required to furnish a Security Deposit at the rates in force from time to time. The period of currency of the zonal contracts will be from 1st July to 30th June. The tenders for Zonal Contracts are required to be invited in the month of April, opened in the month of May and finalised by 30th June so that the contract may take effect from 1st July. (5) Review of tenders and contracts: Divisional and Construction Audit Offices will audit the contracts executed by the Divisional Railway Managers and the Divisional Engineers incharge of Construction/Divisions respectively. Contracts executed by higher authorities will be audited by Expenditure Headquarters and Construction Headquarters Audit Sections, as the case may be. Review of tenders and contracts should be done quarterly i.e., agreements executed in a quarter should be reviewed in the second following quarter. The extent of audit and the levels at which audit of contracts of different monetary limits should be done are indicated in the Programme of Audit. The contracts reviewed by Section Officer/Asstt. Audit Officer should be current reviewed by the Branch Officer as per the percentages indicated in the Programme of Audit. Similarly, the contracts reviewed by the Branch Officer should be current reviewed by the Deputy Director/Director to the extent prescribed in the Programme of Audit. Selection of contracts for audit should be made with reference to the Register of Agreements maintained in the Accounts Office. In order to ensure that the list of contracts to be reviewed by the Headquarters Audit Sections is complete, the Divisional and Construction Audit Offices will send to the Expenditure Headquarters/Construction Headquarters Audit Sections, after the close of every quarter, a list of contracts appearing in the Register of Contracts, finalised at Headquarters level. In addition to the instructions contained in Para 267 et seq. of Railway Audit Manual, the following points should also be borne in mind during the review of tenders and contracts: (a) Planning for the work is invariably done with adequate care and in sufficient detail even in the initial stage and the final scope of the work is fully determined before tenders are invited. (b) The exact specifications of the materials required are indicated in the tender. (c) In case where limited tenders are invited from contractors borne on the approved list, the response is sufficient. (d) No tender without earnest money is considered.

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(e) There is no ambiguity in the description of the items and the contract terms for evaluation of work done in accordance with the accepted schedule of rates, so that there is no scope for different interpretation, regarding the applicability of various items included in the Schedule. (f) Reasons for wide variations between the rates quoted by the different contractors are investigated. When samples are sent to Chemist and Metallurgist, clear instructions are given to examine the comparative economic benefits of different samples keeping in view the purpose for which the samples are tested. (g) There is no undue delay in the technical examination of the tenders, the consideration of the tenders by the Tender Committee, in communicating the acceptance to the tenderers and in the execution of agreement. (h) If the lowest tender has not been accepted, the reasons therefor are recorded. (i) The rates given in the agreement are the same as accepted by the Tender Committee and that these have been attested by a responsible official of the Accounts Office,and (j) The work order for the execution of the work is issued only after the acceptance of the tender. As far as practicable no work orders are approved against the old zonal contract after opening of the new tenders and that all works of the old contract are completed by the end of June. Exceptional cases, which should be very few, should be dealt with by the competent authority. If and when sanction to deviation from the standard conditions of a contract is received, the competency should be examined with reference to Para 626-F et seq. and a note kept in the Register of Review of Contracts for examining the reasons therefor and the propriety of the amendment, at the time of review of the contract. (Note: While auditing contracts, relevant estimates should be checked simultaneously). (A.D.A.I.'s letter No.2301-RAI/8-7/66 dated 27.8.1966). (6) Negotiations with Tnderers: Negotiations with the tenderers are conducted in accordance with the instructions issued by the Railway Board and only in the cases of the following nature: (a) The lowest tender received is considered high. (b) When it is suspected that a 'ring' has been formed by the contractors. (c) When the lowest tender is rejected for one reason or the other viz. (i) rates quoted by the contractor are unworkable; (ii) unsatisfactory credentials, incapacity to do the work etc. The procedure indicated below is required to be followed in conducting negotiations with tenderers:

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(a) As a rule, there should be no negotiations for the revision of rates quoted by the lowest tenderer if there is keen competition amongst the contractors. (b) If the rates quoted by the lowest tenderer are found to be excessively high, negotiations for reduction in rates may be carried out. (c) Such negotiations should be carried out only after approval is given by the authority competent to accept the tender, depending on the value of the work, based on the recommendations of a duly constituted Tender Committee. (d) A final decision on the negotiated offers will be taken by the authority competent to accept the tender, depending on the value of the work, on the recommendations of the Tender Committee. (e) Negotiations should be only to bring down the rates and this should be made clear to the tenderers by obtaining an undertaking. (f) Advices should be sent by registered post to all the contractors who quoted for the work, and (g) In case negotiations cannot be carried out within the period of validity of the tenders, the period of validity is got extended before negotiations are concluded. 607. Record of Tenders and Contracts reviewed: A record of the contracts reviewed by Section Officers/Asstt. Audit Officers/Audit Officers/Senior Audit Officers should be maintained in the proforma given in Annexure I to this Chapter. The register should be put up to the Branch Officer quarterly on 10th of April, July, October and January. The register should be put up to Principal Director of Audit quarterly only when there are any important points. 608. Review of Implementation of Contracts: A review of the implementation of all contracts to the extent prescribed in Appendix to the extent prescribed in Chapters on RANs should be undertaken and the following procedure in regard to the review of implementation of contracts, method of selection, maintenance of registers etc. should be followed. I. (a) The review of implementation of contracts should cover all branches, namely, Civil Engineering, Mechanical, Electrical, Stores, Signal & Tele-communications, Operating, Commercial etc. and also Zonal Contracts. (b) Implementation of works and service contracts shall be reviewed by the Divisional Audit, Construction Audit units and Traffic Audit Sections. Implementation of stores contracts (Purchase Orders) will be done by Stores Headquarters Audit Section in respect of stock items and by Divisional Audit, Construction Audit, Workshop and Stores Audit units etc. in respect of non-stock items. (c) Implementation of contracts should be reviewed on quarterly basis as in the case of review of tenders and contracts. (d) The review of implementation of contracts should be ab-initio by the Audit Officer/Senior Audit Officer in respect of contracts valued above Rs. 50 lakhs to Rs. 5 crores and by the Section Officer/Asstt. Audit Officer in respect of selected contracts valued upto Rs. 50 lakhs.

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(e) At the discretion of the Branch Officer, the contracts reviewed by Section Officer/Asstt. Audit Officer should be current reviewed by him. II. As different percentages of audit have been prescribed for audit of contractor's bills, review of tenders and contracts and review of their implementation, the following procedure should be adopted for selection of contracts for review of implementation and their actual review. I.

WORKS CONTRACTS:(a) In the case of Works Contracts, when the final bills passed in respect of contracts valued over Rs. 1 lakh are taken up for regular monthly audit, the relevant files relating to the contracts should be looked into, wherever possible, to see how the contracts have been implemented. A list of all such contracts reviewed in the course of audit of final bills should be maintained in a register, separate pages being allotted for contracts valued between Rs. 1 lakh and Rs.5 lakhs and contracts of over Rs. 5 lakhs.

(b) At the beginning of each quarter, i.e., in the first week of January, April, July and October, lists should be prepared from the contractor's ledgers maintained in Accounts Office of all the final bills passed during the previous quarter in respect of contracts valued between Rs. 1 lakh, above Rs. 1 lakh but below Rs. 1 crore and above Rs. 1 crore. All the contracts valued over Rs. 1 lakh as recorded in the Register of review of contracts should be linked up with the closure of contractor's ledgers on passing their final bills and suitable entry to this effect should be made in that register. All contracts valued over Rs.20 lakhs and a percentage (to be selected as laid down in the Secret Memorandum of Instructions) of contracts valued between Rs. 5 lakhs to Rs. 20 lakhs and Rs. 1 lakh and Rs. 5 lakhs should be taken up for review of implementation. Necessary selection-cum-audit completion registers should be maintained for this purpose as in the case of other audit items. It should be seen as to how many of the completed contracts have already been reviewed during the course of audit of final bills and the balance, if any, should be called for and reviewed. The contracts which have already been reviewed for implementation at the time of check of final bills should also be reviewed again wherever the contingency referred to in Para (c) below arises. (c) In cases where completion of the maintenance period and of warranty/guarantee period is involved, the passing of a final bill cannot be equated to the final completion of contracts. In such cases, the review should not be held up but should be reviewed again after the expiry of the maintenance/warranty/guarantee period. There may also be cases where, due to disputes raised by contractors, work may be abandoned by them without completion and in such cases final bills as such might not have been passed. Such cases where final bills have not been passed even after one year from the date of physical completion of the work or abandonment of the work, should also be specially reviewed for implementation of contracts treating the last bill passed as final bill as per prescribed monetary limits. It should specifically be verified that claims for recovery of the extra costs incurred in completing the left over works, if any, are preferred correctly and action taken to realise the Government dues. (d) In so far as Construction Audit units are concerned, the review of implementation of contracts should be done during the local inspections of Executive Offices and/or during the review of major works if that is considered more effective and convenient.

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II. The review should cover all aspects of the contract and it should be specifically seen whether the objectives for which a contract was entered into were fully achieved. III. The register of "Review of Implementation of Contracts" should be maintained in the following proforma: 1. Serial number 2. Quarter ending 3. Contract Agreement number and date 4. Name of the contractor/firm 5. Name of work/particulars of materials supplied 6. Value of the contract 7. Date of commencement and completion of contract 8. Au6 number and date of Final Bill 9. Special features, if any and reference to objection issued 10. Remarks of the Reviewing Officer IV. At the commencement of every quarter i.e. by 10th January, April, July and October, the Register of Review of Implementation of Contracts should be submitted to the Principal Director of Audit by the sections concerned indicating, inter alia, arrears in the review, reasons therefor, action taken to clear the same etc. (P.O.O. No.93 dated 30.7.86 read with Para 32 of SMI (Page 9)) The following are some of the points to be seen during the review of implementation of contracts: (1) Wherever higher rates are agreed to for earlier completion of the work, the stipulated date of completion is adhered to; extensions to the contract period are not sanctioned as a matter of course and penalty is levied or extra expenditure recovered in such cases. (2) Unilateral extension to the contract period is not given by the Railway Administration even though the terms of contract provide for the same without specific consent/request from the contractor. Wherever new items or additional quantities are brought in, the rates are reasonable compared to the original contract rates and also that these could not have been foreseen at the time of awarding the original contract. (3) If materials or equipment are issued to the contractor, the rates for the same are correctly fixed and recovered. (4) In the case of works of an urgent nature, it should be specially seen that: (i)

there is no delay in executing formal agreements and consequent intended benefits to the contractor by way of longer completion period and consequent escalation in rates etc.

(ii)

where higher rates are accepted for earlier completion, there is no failure on the part of the Railway Administration to fulfil its part of the contractual obligations to ensure timely completion of the contract.

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(5) Increase and decrease in quantities.: It should be specially seen that increase or decrease in quantities does not have the effect of rendering the accepted tender less favourable than any of the rejected tenders. It may also happen that high rates must have been accepted for certain minor items, but the quantities of such items are increased beyond reasonable limits involving heavy payments. Even though under the Standard Conditions of Contract, the contractor is required to do increased quantities of work, such increase should be reasonable. Reasonable increase is quantity has been fixed to be 15 to 25% by the Railway Board in consultation with the Ministry of Law. Cases of upward classification of earth work resulting in substantial overpayments and on-account payments, in excess of the value of work done, also require special examination. In respect of zonal works, it should be specially seen that there is no holding back of work orders or hurried issue of too many work orders depending upon the following year's rates, during the last months of the year to favour the contractors. Cases of arbitration and Court cases arising out of disputes in the finalisation of the contracts should also be reviewed. A register of Review of Implementation of Contracts should be maintained indicating the particulars of the contracts selected and reviewed, details of the records reviewed and the results of the review. 609. Audit of Contractors Bills: Detailed instructions for the audit of Contractors' bills are contained in Paras 270-271 of Railway Audit Manual. Final and on-account bills of contractors are selected for audit. All on-account bills relating to the final bills selected for audit should also be audited along with the audit of the final bills. A record of the final bills and the on-account bills audited should be kept in the Selection-cum-Audit Register. In addition to the checks which are normally required to be exercised in the audit of contractors' bills, the following checks may also be exercised to the extent practicable on the bills for well sinking and earth work. (1) Bills fork well sinking: In addition to the check of the quantities in the bills with the entries in the Measurement Book, entries themselves should be checked with the entries in the Log Book or Field Book or otherwise known as 'Technical/Site Register' maintained for such works. It may be seen that the recording of the bed level (or the ground/water level in the case of ground wells) has been done by a responsible official and signed by the AEN incharge and the contractor in token of his acceptance. The entries in the Measurement Books could also be usefully checked with reference to the completion drawings available in the Divisional Office which would show the level reached by the cutting edge and the bed level. (2) Bills for earth work: In the case of large earth works 'Key plan' and the 'Project sheets' may be consulted in order to have a general idea of the work. Earth work will ordinarily be paid for, based on measurements by crosssection of formation taken before commencement and after completion of the work. Contractors are required to sign the cross-section measurements in token of acceptance.

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In the case of earth work based on cross-section measurements of bank or cutting, the entries in the Measurement Books would show the area of the cross-section at different suitable chainages, the length of the bank or cutting between consecutive crosssection and the quantity for each length of the bank/cutting. In addition to checking the bills with the measurement books, which has necessarily to be done, the entries in the measurement books themselves could be usefully checked i.e., the area worked out with reference to the level books. The area of the cross-sections worked out as per the entries in the level books could also be test-checked. Where the bank is made up partly from cut spoils and partly from borrow pits, the chainages of the bank to be formed under each category is pre-determined by the Engineer's representative. In such cases, it may be seen that the cut spoils have been used to the best advantage of the Railway. In the case of banks formed from cut spoils, lead is reckoned from the centre of gravity of the cutting mass to the centre of gravity of the embankment mass by using a mass diagram. In respect of banks formed from borrow pits, the lead is determined with reference to the borrow pits plans. The entries for lead shown in the Measurement Books should be checked with reference to these records. (C.A.G.'s Lr.No.B/1803-RAI/7-15/61 dated 1.6.1962) 610. Measurement Books: It should be seen that measurements are recorded in accordance with the instructions contained in Way and Works Manual and specifications for works and materials. Subordinate officials of the Engineering Department are authorised to record measurements only upto certain monetary limits. It should be seen that these limits and other restrictions regarding special items such as hidden works, measurement of ballast etc. are strictly adhered to. When standard measurements are adopted, these should have been approved and upto date. It should also be seen that necessary certificates in respect of standard measurements and approximate measurements are recorded by the officials authorised to do so. While checking contractor's final bills relating to earth work contracts during inspection of Construction Engineering Offices, an intelligent detailed scrutiny of measurement books with connected documents will reveal many mistakes. The measurement book has to be checked with the help of the following supporting documents: (1) Survey level books showing the ground levels at the time of preparation of estimates and tender schedule. (2) Ground level books showing the level at the time of handing over site to contractor. (3) Final level books. (4) Site measurement books. (5) Cross section sheets. (6) Earth work calculation register, and (7) Track map indicating gradient etc. Detailed check is conducted on the following lines: (a) cross section areas, as noted in the measurement book, are tallied with the entries in Earth Work Calculation Register;

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(b) the final levels taken for calculation in the Earth Work Calculation Register should agree with the final levels touched in the level books and should be in accordance with the proposed gradient as shown in the track drawings or other authentic records; (c) ground levels are to be checked with reference to entries in level books which should agree with the original levels recorded at the time of survey;and (d) cross sections arrived at should be as per specification i.e., slopes are provided correctly and toes of banks are correct. Wherever the levels at toes are not touched, the levels should be arrived at by interpolation of levels taken on immediate points on both sides. (Para 274 of Railway Audit Manual). 611. Contractors' Ledgers: Contractors' Ledgers should be reviewed simultaneously with the audit of contractors' bills in accordance with Paras 272 and 273 of Railway Audit Manual(Para 1483-E). 612. Works Registers and Revenue Allocation Registers: Journal Vouchers to the extent prescribed and all audited vouchers should be traced into the Works Registers or Revenue Allocation Registers. In the open line, only one set of Works Registers and Revenue Allocation Registers is maintained. In the Construction Organisation, Works Registers are maintained in the Divisional Engineers' Offices and in the Accounts Offices. In the case of Works Registers for deposit works, in addition to the points mentioned in Paras 280 and 281 of Railway Audit Manual, it should be seen that the expenditure booked is not in excess of the deposit or that action has been taken to obtain further deposits where the expenditure has exceeded the deposit already made. The annual general review of Works and Revenue Allocation Registers should be done in a phased programme. It should be seen whether the reconciliation of Works Registers and Revenue Allocation Registers with General Books is done every month in respect of the unit selected. (Paras 1471 & 1480-E and Paras 272 and 273 of Railway Audit Manual) 613. Scrutiny of Financial Reviews: Consequent on the discontinuance of preparation and submission of Half Yearly Financial Reviews of the large works by the Railway Administration to the Railway Board vide letter No.73/EB/403 dated 2.10.1973, audit should ensure during the inspection of major works and review of Works Registers that adequate control is exercised by the Railway Administration over the closure of the accounts and preparation of completion reports of works and that there are no cases of abnormal delay in closing the accounts of works after their physical completion. 614. Review of Productivity of out-lay: The Railway Administration is required to conduct productivity test in respect of Open Line works and works charged to Capital in terms of Para 248 of Financial Code Vol.I. In addition to the productivity test to be conducted, a productivity review will also be undertaken as required under Para 249 of Financial Code Vol.I.

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The review of the productivity test should be carried out as laid down in Para 292 of the Railway Audit Manual. The instructions contained in C.A.G.'s letter No.3544444/RAI/8-4/70 dated 5.9.1970 should also be borne in mind during the review of productivity of outlay. Results of the review should be reported to.D.A.I.. A register showing the works which are due to be taken up for productivity tests automatically or which are selected by the General Manager should be maintained by the auditing sections, incorporating the information collected from the Finance Branch of the F.A.&.C.A.O.'s office. The register should be kept uptodate. The proforma for the maintenance of the register is given in Annexure - II to this Chapter. The registers of the Headquarters Sections should be put up to the Principal Director of Audit yearly. (Paras 248 to 252 of Financial Code Vol.I) 615. Review of Major Works: This is dealt with in the Chapter on 'Inspections'. 616. Accounts of Sidings: Instructions contained in Para 285 of Railway Audit Manual may be seen. The following points should also be borne in mind in checking the accounts of Sidings: (i)

An upto date list of sidings is sent by the DEN to DAO in April every year.

(ii)

Rate of recovery of interest charges is revised every five years taking into account the present day cost of the assets borne by the Railway.

A list of all sidings pertaining to each division should be furnished in April every year by the Divisional Audit Offices to the Traffic Audit Section to ensure that the statement of siding charges of all sidings come under the purview of audit without omission. The review of the accounts of a few sidings may be taken up every month if the number of sidings is too many, completing the review of all the sidings in a year. Cases of large amounts outstanding for recovery from siding owners should be specially reviewed. Minutes of the DRM's Meeting with Divisional Officers which often furnish information about the outstanding dues from siding owners may be reviewed with advantage to get an over-all picture of arrears in the recovery of siding charges. In cases where cost of staff is recoverable from siding owners, it should be seen that in addition to pay and allowances, the percentage charges laid down in Para 2021 R-II are correctly recovered. 617. Joint Station Accounts: South Central Railway has no Joint Stations involving nonGovernment Railways. 618. Review of Registers of items under objection: Registers of items under objection should be reviewed quarterly. It should be seen that the objections raised by both Accounts and Audit are noted in Objectionable Items Register. The cases referred to in this Register should also be gone through to see whether sufficient action is taken by the Accounts Office and the Departments concerned to clear the objections. Special attention should be paid to

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miscellaneous items kept under objection. It should be seen that all payments made provisionally to other than Railway employees are entered in Objectionable Items Register. At the time of check of Appropriation Accounts, it should be seen that all items of expenditure held under objection are included in the Annexure - A to Appropriation Accounts "Statement of unsanctioned expenditure". (Para 283 of Railway Audit Manual and Paras 844-863 of Indian Railway Accounts Code Vol.I). 619. Law Charges and Arbitration Fees: Law Charges and arbitration fees should be audited in accordance with the instructions contained in Para 277 of Railway Audit Manual. 620. Audit of Journal Vouchers: In cases where the amount of Journal Vouchers is 'nil' on account of plus and minus adjustments, the total of the plus figures should be adopted for the purpose of applying the percentage audit on the basis of amount. The Journal Vouchers should be checked from the point of propriety, correctness etc. why the adjustment became necessary, whether it points to possible misclassification and whether it has been made to avoid lapse of funds or excess over appropriation. Besides these, the following special points also should be seen: (i)

Cases of delayed adjustments involving large amounts and pertaining to the previous years will be noted to see at the time of Appropriation Accounts regarding adequacy of provision in the Budget Grant.

(ii)

Cases of misclassifications, important mistakes in accounting and any other important points affecting the Appropriation Accounts, noticed during the check of Journal Vouchers, will be noted in a separate register to be consulted at the time of the check of Appropriation Accounts.

(iii)

During the scrutiny of March Accounts, Divisions and Sections should keep a careful watch over all major adjustments carried out by the Accounts Office. Any special or unusual adjustments involving heavy amounts carried out by the Accounts Office, which the Branch Officer may consider to be important enough to be further examined, should be reported to ‘SAG’ (also known as ECPA) Section for detailed investigation.

Journal Vouchers to the extent prescribed should be traced into the Works Registers/Revenue Allocation Registers in the manner laid down in the Secret Memorandum of Instructions. In addition to the audit of Journal Vouchers, all adjustment mema should be subjected to a detailed check to the same extent as Journal Vouchers. (C.A.G.(R)'s letter No.1261-RAI/8-7/66 Vol.I dated 24.4.1967). (Paras 278 and 387 of Railway Audit Manual). 621. Payment of Municipal Taxes: Payment of service charges to Municipalities and Local Bodies in respect of Railway properties is governed by the instructions contained in Railway Board's letter No.F(X)II-48/TX-17/24-A dated 24.7.1954. Where a consolidated tax is levied by Local Bodies, as distinct from separate taxes for each item of service, the payment of

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service charges should be regulated by the instructions contained in the Ministry of Finance letter No.4(7)-P/65 dated 29.3.1965. In terms of Article 285(1) of the Constitution, Central Government properties are exempt from all taxes imposed by the State or by any authority within a State. Under Article 285(2), however, the Government is liable to pay such local taxes as were being paid before 26th January, 1950. Detailed instructions in regard to Railways' liability to pay local taxes are contained in Railway Board's letter No.F(X)-165-TX/19/6 dated 22.5.1966. As and when the Municipal tax bills are selected for audit, the Expenditure Audit Section should verify the existence of the assets taxed with reference to the Register of Buildings etc. and also examine the sanction to payment, correctness of the amount paid etc. 622. Recovery of water charges from Gazetted Officers occupying Railway Quarters: Charges for water supplied to the Gazetted Officers occupying Railway Quarters should be adequate to meet the cost incurred by the Railway. The rates are fixed once in five years in accordance with the instructions contained in Railway Board's letter No.F(X)II-54/TX-33/2 dated 2.9.1959. The correctness of the rates fixed will be scrutinised by the Expenditure Headquarters Audit Section. However, as the details for fixing the rates are furnished by the Divisions, the correctness of these details have to be checked by the Divisional Audit Officers concerned. The recovery of water charges made from pay bills will be watched by the Establishment Audit Section. 623. Review of Court Cases and Arbitration Awards: Court cases decided against the Railways to the extent prescribed are required to be reviewed. The following points should, inter alia, be seen: (i)

That there is no abnormal delay in taking various steps in the course of a case e.g., filing the affidavit, or documents, production of evidence, dealing with reference from Railway Pleaders etc.

(ii)

That there is no failure on the part of the Railway Administration in furnishing the required information to win the case.

(iii)

That there is no absence of key witnesses or advocate, and

(iv)

That there is no delay in satisfying the court decrees and consequent extra expenditure.

Important results of review of court cases and arbitration awards should be reported to the Principal Director of Audit. 624. Land Register: The rules and procedure regarding acquisition, custody, management and disposal of land given in Chapter VIII-E to X-E and the procedure of disbursement of land charges and maintenance of Register of Land Charges in Accounts Department, given in Paragraphs 924-E to 949-E should be referred to. The Register should be generally reviewed every year to see that it is maintained and kept upto date. It should be seen that the land is acquired only for sanctioned works and bonafide Railway purpose. (Para 287 of Railway Audit Manual).

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625. Rent on Railway Buildings: In accordance with the instructions issued by the Railway Board, the assessed rent of each class of quarters both for Gazetted and Non-Gazetted staff should be fixed by the General Manager so that the total rent realised for all the quarters in that class taken together will give a return of not less than 6% of the cost of the building. For this purpose, the capital cost of the buildings will include not only that of the buildings proper, but also the cost of sanitary installations and electrical fittings. Whenever new buildings are constructed or expenditure over specified limits is incurred on existing buildings or certain buildings are condemned, amendments to the Register of Buildings will be notified by the General Manager(Works). Once in three years, the total cost of Gazetted Officers' and N.G.O's quarters will be ascertained separately for each class for working out the revised assessed rent. The correctness of the assessed rent fixed for each type of quarter will be checked by the Expenditure Audit Section at Headquarters. The information regarding the cost of the buildings furnished by the Divisions to the Chief Engineer should be verified by the Divisional Audit Officers and remarks, if any, intimated to Expenditure Headquarters Audit Section. (Para 1906-E et seq ). 626. Register of Buildings: The Register of Buildings maintained in the Accounts Office should be generally reviewed at the time of check of annual rent return of Residential Buildings to see that they are maintained properly indicating all the required particulars. It should be seen during the audit of Completion Reports that necessary additions are made in the Register of Buildings. With the introduction of simplified procedure for recovery of rent on residential buildings, the maintenance of Rent Registers has been discontinued. Instead, Rent Rolls have been introduced which give full particulars of quarters, names of employees occupying the quarters, assessed rent etc. 627. Annual Rent Return Account of the Residential Buildings: From the list of Buildings and the Financial Accounts, the Annual Rent Return Account of residential buildings will be compiled by the Accounts Office. These are required to be audited to the extent prescribed in letter NO.Au/XHQ/XIX-2 dated 4.5.1968. It should be seen that the total cost of the buildings has been correctly worked out with reference to the Register of Buildings. Total amount of rent collected should be checked with the rent rolls. Note: The compilation of Annual Rent Return Accounts of Residential Buildings constructed by the Construction projects and allotted to the construction staff has been dispensed with in terms of Railway Board's letter No.F(X)/1-68-OR11/1 dated 7.4.1968. Annual Rent Return Accounts of Residential Buildings prepared by the Divisional Accounts Officers will incorporate accounts of Residential Buildings of Open Line allotted to the construction staff, as the credits in respect of rent recoveries from staff of construction are passed on to the Open Line Divisionalo Accounts Officers for carrying out necessary adjustments. (5th Edition) (Para 259 of Railway Audit Manual and Para 1629-1630 AI). 628. Audit of Property Accounts: An adequate procedure to check the property accounts in respect of immovable property, which are maintained by the Railway Administration is necessary. Separate instructions exist for the audit of Land Registers, Register of Buildings

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and Register of Sidings. The procedure indicated below should be followed for checking other records of property accounts: (a) Register of Bridges: This may be reviewed during local inspections to see that all bridges constructed have been noted in this register bringing it upto date and new constructions are noted as soon as completion drawings are made out. (b) Register of Level Crossings: This should be reviewed during local inspections to see that it is complete and upto date. (c) List of Completion Drawings: During local inspections it may be seen that completion drawings in respect of works completed to the estimate drawing/drawings exist and a record kept thereof. There may be one completion drawing when several structures are erected in the same locality and to the same drawing. In such cases, number of assets involved may be checked with the estimates and completion reports. (C.A.G.'s letter No.1191-RAI/8-11/67 dt.1.4.1968). 629. Review of Suspense Registers: (a) Miscellaneous Advances: Advances paid to Land Acquisition Officers, 90% advance paid to contractors for supply of engineering materials, advance payments to contractors for works etc. come under Miscellaneous Advances dealt with in Expenditure Section. (b) Deposit Miscellaneous: Earnest Money and Security Deposit of Contractors and deposits made by outsiders for deposit works etc. come under this category. Separate registers are maintained in the Accounts Office for each category of Miscellaneous Advances/Deposits. The registers should be reviewed in June every year on the lines indicated in Para 610 and 614-AI and Para 371 of Railway Audit Manual. The halfyearly reviews for May and November submitted to the Railway Board may also be referred to during the review of the registers. In addition to the general review, one month's outstandings should be traced back to the month of origin. In the case of deposits for works, the Works Registers for Deposit Works should be connected. It should also be seen that the balances have been reconciled with General Books. (Paras 610, 614 AI and Para 381 of Railway Audit Manual). 630. Financial Assistance to Railwaymen's Consumer Cooperative Societies: The following forms of financial assistance are given to Railwaymen's Consumer Cooperative Societies by the Railway Administration. (1) Matching share capital contribution upto Rs.2,500/- per society in the case of societies which have started functioning on or after 1.9.1963 and also in the case of such of the dormant societies which ceased to function for want of finances and, in the opinion of the Railway Administration, could be revived by the grant of this concession. (2) Interest-bearing repayable working capital loan to such of those societies which, for want of finances, are either not functioning progressively or cannot expand their scope of activity. (3) 50% of the Administrative and Establishment charges as subsidy.

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It should be examined whether the conditions attached to the payment of contributions to share capital, loan and subsidy are fulfilled. (Railway Board's Lr.No.63(E)/Coop/40/26 dated 13.10.1964, No.64/B(Coop)/9/6 dated 24.4.1965 and No.65/E(Coop)/14/13 dated 10.1.1966). 631. Payment of subsidy to staff canteen: Payment of subsidy to staff canteens is governed by the orders contained in Railway Board's letter No.E(W)63 CNI-2 dated 9.7.1963 and No.E(W)64CNI-17 dated 23/28.12.1964, as amended from time to time. The subsidy payable by the Railway Administration would be 70%. It should be seen during the audit of sanctions/vouchers for payment of subsidy that the accounts and the certificates, as required to be submitted under the extant orders, have been submitted and the conditions for the grant of subsidy have been fulfilled. 632. Grants-in-aid: It should be seen whether the grants are spent on the specified objects and in accordance with the prescribed conditions. Instances of misuse of grants and also irregularities due to the neglect by the sanctioning authority of conditions precedent to the grant or by the grantee of the conditions, expressed or implied, should be taken up. (Para 3.5.1 to 3.5.9 of the C.A.G's Manual of Standing Orders (Audit) and Paras 1612 to 1619-AI ) 633. Expenditure from Hospitality Fund: Chief Public Relations Officers of Railways are authorised to incur expenditure to entertain Press Representatives, personnel connected with Commercial Advertisement and distinguished visitors. The conditions under which expenditure from Hospitality Fund may be incurred are laid down in Board's letter No.89/PR/4/9 dated 29.4.1989. A quarterly statement is submitted by the Chief Public Relations Officer to the General Manager indicating the number of occasions on which expenditure from the fund was incurred, expenditure met on such occasions and the number of persons on each occasion. A general review of the expenditure should be conducted yearly with reference to the register maintained in the F.A.&.C.A.O.'s office. 634. Pay Orders/other vouchers not falling under any other category: Bills relating to payment of service charges to local bodies, bills for electricity, water charges and telephone charges etc. are audited under this item. While auditing these vouchers, the instructions contained in Para 269 of Railway Audit Manual should be borne in mind. (Para 288 of Railway Audit Manual). 635. Bills Recoverable: All amounts due to the Railway are realised by the issue of bills in Form A.1138/E.1463. All bills issued are entered in the Bills Recoverable Register and numbered in consecutive order. The register will indicate particulars such as number and date of the bill, amount, date of realisation, mode of payment, reference to journal entry etc. Separate Bills Recoverable Registers are required to be maintained for recurring items such as interest and maintenance charges on sidings, rent for accommodation given to other departments, rent on land licensed to other departments or private parties, rent for way-leave facilities such as pipe lines, cables, maintenance charges for level crossings, nominal rent from canteens etc.

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These registers and the office copies of the bills should be reviewed yearly, at the time of Review of the Accounts Office work to see that the amounts due have been correctly billed for and that there is no undue delay in realisation of the dues. (Para 1139-1140-AI). 636. Audit of Stores Bills for non-stock items: Stores Bills for non-stock items of stores chargeable to revenue final heads of account and to specific works, chargeable to Capital, Depreciation Reserve Fund, Development Fund and Open Line Works(Revenue) are passed by the Divisional Accounts Officers and other Unit Accounts Officers. Consequently, the audit of the same has to be done by the corresponding Divisional/Unit Audit Officers. These bills including stationery bills of non-stock items are audited to the extent prescribed. The audited bills should be traced into the Accounts and Departmental Ledgers. As Risk Purchase Statements are not prepared by COS, the correctness of the amount to be recovered from the defaulting firms should also be checked half-yearly with reference to the Risk Purchase Register maintained in the Accounts Office. I.S.D. Bills adjusted through Journal Vouchers should also be audited to the extent prescribed for Stores Bills. (Paras 297 and 298 of Railway Audit Manual). 637. Audit of Catering Accounts: (a) Daily Accounts: Daily Accounts maintained at the Catering Units are required to be audited by the Expenditure Section of the Divisional Audit Office concerned Accounts for a ten-day period should be selected and the transactions of the unit so selected intensively reviewed especially with a view to seeing that the quantity of stores consumed is commensurate with the sales and that the wastage has been kept to the minimum. The recipes and the formula prescribed for the various items should be reviewed to see that they are commensurate with the actual needs and wastage has been kept to the minimum and that these are reviewed regularly. Whenever a catering unit is selected for audit, remittance of cash collected during the year viz., from 1st April to the date of inspection should be reviewed. Daily accounts of Dining cars should be audited during inspections. Transactions of selected trips on different occasions should be checked in detail in respect of all dining cars during the inspection. Remittance of cash for the whole year viz., from 1st April to the date of inspection should also be reviewed. (b) Monthly Accounts: Monthly accounts of catering are audited to the extent prescribed in respect of all the catering units/dining cars by the Divisional Audit Offices. During the audit of monthly returns including the monthly Profit and Loss Accounts, it should be seen that the monthly reconciliation of cash collections with the credit afforded by Traffic Accounts Branch has been carried out. A review of the vouchers relating to losses in each of the Departmental Catering Units for the month selected and an overall review for the year as a whole should be carried out to ensure that there is no undue delay in the review of these losses and regularisation thereof and the incidence of loss is not heavy.

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Audit of contracts for supply of catering stores entered into by the CCM/CCO(Catering) and the bills relating to the supply is done by the Expenditure Headquarters Audit Section to the extent prescribed under 'Stores Audit'. Audit of consolidated Profit & Loss Accounts of Catering etc. dealt with in the F.A.&.C.A.O's office will also be done by the Expenditure Headquarters Audit Section. 638. Audit of Fuel Accounts: The procedure for the supply, receipt, issue and accountal of coal and coke/diesel oil, is laid down in the Joint Operating and Accounts Procedure Office Order No.12/No.13 of 1968 issued by the COM/F.A.&.C.A.O. Detailed procedure to be followed in the Accounts Offices for accountal and internal check are contained in Paras 55 to 60 of P.O.O.No.12 and Paras 26 to 29 of P.O.O.No.13. The accounts of locomotive fuel are maintained by the DAOs and that of the fuel required for the workshops by the WAOs. The audit of such transactions will devolve upon the Divisional/Workshop Audit Offices concerned. The audit of centralised transactions detailed in Para 53 of P.O.O. No.12 and Para 24 of P.O.O. No.13 of 1968 will devolve upon the Stores Headquarters Audit Section. (Para 329 of Railway Audit Manual). The extent and periodicity of audit of fuel accounts will be the same as those applicable to similar stores items. This monthly audit is in addition to the items specifically provided for coal in the programme of audit and would be applicable to other fuel items also. Accordingly, the extent and periodicity applicable to Stores Audit as per Programme of Audit will also apply to the following items of audit of Coal/HSD Oil Accounts. (C.A.G.'s letters.No.806-RAI/8-3/68 dated 16.2.68 and No.1364-RAI/8-3/68 dated 8.4.69) Stores Audit Programme - Item No. (in the Memo of Instructions)

Name of the Item

1.

2.

1.

II

Receipt Returns

2.

III

Delivery Notes

3.

IV

Ledgers

4.

V(1)

Monthly Statements of Stores Account Current

5.

V(3)

Sales Abstracts

6.

VII

Suspense Registers.

7.

VIII

Stock sheets - Verification

8.

X

Stores-in-transit Register

9.

XI

Stock Adjustment Account Register.

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Separate selection should be taken for the audit of accounts of Coal and HSD Oil. 639. Audit of Coal Issue Notes: The issue notes are accounted for through Statement of Daily Issues, one copy of which is submitted by the sheds to the Accounts Office along with the issue notes. The issue notes should be traced into the Statement of Daily Issues which, in turn, should be traced into the Monthly Balance Sheet submitted by the sheds. The total receipts shown in the Monthly Balance Sheet should be tallied with the total debits raised by the Headquarters Fuel Accounts Section. While checking the Account Current, the allocation for issues of coal should be verified with reference to the statements showing coal issues to different services submitted by the sheds. 640. Audit of Priced Ledgers: Separate Priced Ledgers are maintained for each class of coal/oil in respect of each shed. All the Priced Ledgers should be reviewed once a year, taking a few ledgers for audit every month. In addition to the general review of the ledgers, the following points should also be seen: (1) The receipts and issues as per Monthly Balance Sheet submitted by the sheds have been correctly abstracted for each grade of coal shed-wise and posted in the Priced Ledger. (2) The value of the receipt side is posted as per debit raised by the Central Fuel Section (Headquarters). (3) Issues are valued at the rates advised by that section,and (4) Handling charges are added to pit-mouth cost and in the case of sales, supervision charges are also added. 641. Suppliers’ Bills: During the audit of these bills, the general principles laid down in Chapter-XVII of the Railway Audit Manual for check of Stores Suppliers' bills should be borne in mind. In addition to this, it should be seen that (i)

the bills are checked in the Accounts Office with the Wagon Disposal Statements for verifying the quantity and grade of coal received;

(ii)

the rates claimed in the bills agree with the rates given in the Price Control Order of the Government of India;

(iii)

the quantity of coal supplied is covered by the programme issued by the Coal Controller.

642. Coal Handling Contracts: The extent of audit of coal handling contracts will be the same as that applicable to works contracts. Contracts entered into by the COM will be audited by the Expenditure Headquarters Audit Section and those entered into by the DRMs will be audited by the Divisional Audit Offices.

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643. Coal Handling Bills and Ash Pit Clearing Bills: These should be audited as Contractors' Bills to the extent prescribed. 644. Sale of Coal: A monthly statement of sale of coal/cinder is submitted by the sheds to the Accounts Office. It should be seen that the sale of coal to Railway employees is made on cash basis. Correctness of the rate for the coal sold to employees, catering contractors, Railway and non-Railway officials etc. and the competency of the officials effecting such sale should also be checked. 645. Review of the Suspense Registers(Fuel): The following suspense registers are maintained in the Fuel Section of the Accounts Office separately for coal and diesel oil: (1) (2) (3) (4) (5) (6)

Cap. 7100 - Stores Cap. 7100 - Stores in Transit Cap.7100 - Stock Adjustment Account Cap.7100 – Sales Miscellaneous Advances(Capital) Deposit ‘S’- Sales to private party

The points to be seen during the review of the Stores Suspense Registers vide Paras 320 and 321 of Railway Audit Manual apply in the case of these registers also. The scope and extent of check laid down for the transactions of coal will apply mutatis mutandis to the transactions of diesel oil. 646. Electricity used as Locomotive power: The instructions contained in Para 330 SubPara 5 of Railway Audit Manual should be kept in view while checking the bills for the power supply.

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Annexure - I (Para 607) Register of Review of Contracts relating to Works and Purchase of Stores etc. ……. 1. (a) (i) Agreement/Purchase Order No. and date (ii) Date of opening Tender (iii)Date of TC meeting held (b) Description of Works/Service/Supply etc. (c) Name of the Contractor/Firm to whom awarded (d) Rate accepted (i) basic rate (ii) excise duty (iii) CST (iv) APGST (v) Freight (vi) Insurance and (vii) Discount clause, if any, (viii) any other item. (e) Quantity/quantum of Work/Supply involved (f) Total value (g) Type of Tender 2. (i)

Advertised Tender

(ii)

Bulletin Tender

(iii)

Global Tender

(iv)

DGS&D Rate Contract

(v)

Single Tender for propriety Articles

(vi)

Limited Tender

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(a) Whether the lowest tender was accepted. (b) If not, whether the reasons for rejection of the lowest tender were placed on record. (i)

Item technically not suitable

(ii)

Unsolicited offer

(iii)

Counter offer made by the firms

(iv)

Any other reasons

3.

Whether audit has questioned the discretion exercised by the competent authority.

4.

Whether all the points mentioned in Paragraph 259 of Railway Audit Manual have been covered.

5.

Audit Comments.

6.

Reference to Special Letter/Audit Note issued based on the observations with reference to S.Nos. 3, 4 and 5 above.

7.

Signature of the Officer who reviewed the Contract.

(P.O.O. No.88 of 12.06.1986 and P.O.O. No.143 dt. 23/29.1.2001)

…….

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Annexure - II (Para 614) OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT, SOUTH CENTRAL RAILWAY REGISTER OF PRODUCTIVITY TEST (i)

Proforma for adoption by Expenditure Headquarters Audit and Workshop & Stores Audit/Lallaguda Sections:

Sl. No.

Name of the work due to be reviewed automatically or selected by Railway Board/General Manager quoting reference to Railway Board's or General Manager's sanction

1.

2.

Date of physical completion of the work

3.

Date on which the productivity test is due to be completed

4.

Date of completion of the test and submission of the reports to the General Manager/ Railway Board 5.

Date on which audit review is completed

Reference to Audit comments, if any(give the file number)

6.

7.

Attestation by G.O.

8.

REMARKS

9

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Annexure - II (Para 614) (ii) Sl. No.

1.

Proforma for adoption by Divisional Audit Officers, Audit Officers(Workshop & Stores) and Construction Audit Branches: Name of the work due to be reviewed automatically or selected by Railway Board/General Manager quoting reference to Railway Board's or General Manager's sanction 2.

Date of physical completion of the work

3.

Reference to letter No. and date under which the date of completion has been advised to the head office

4.

Remarks

5.

``

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CHAPTER - VII ESTABLISHMENT AND P.F. AUDIT 701. General: The Establishment Section is responsible for the audit of all charges relating to Railway servants, both Gazetted and Non-gazetted. Instructions for the audit of Establishment charges are contained in Section III of Chapter 2, 3, 6 and 11 of Manual of Standing Orders(Audit) and Chapter XV of Railway Audit Manual. The relevant rules on the subject are contained in the Indian Railway Establishment Codes, Chapters XII and XV and Chapters XI and XII of the Indian Railway Code for the Administration and Finance - An Introduction, Chapters X, XII, XIII and XIV of the Indian Railway Code for the Accounts Department, Part I, the Indiann Railway Establishment Manual and Manual of Railway Pension Rules. Special rules and procedures approved by competent authorities for individual Railways should also be borne in mind. The Establishment and Provident Fund Audit Sections corresponding to the Establishment and Provident Fund Accounts Sections are as indicated below: Accounts Office & Section dealing with Establishment and P.F. Accounts --------------------------------------

Corresponding Audit Office/Section -----------------------------------------

F.A.&.C.A.O.'s Office Secunderabad

Establishment Headquarters

Divisional Accounts Offices Secunderabad, Hyderabad, Guntakal and Vijayawada - Establishment and P.F. Sections

Divisional Audit Offices, Secunderabad, Hyderabad,Guntakal, Guntur, Nanded and Vijayawada - Establishment and P.F. Audit Sections.

Workshop & Stores Accounts Offices, Lallaguda, Guntupalli and Tirupathi Establishment and P.F. Sections.

Workshop and Stores Audit Offices, Lallaguda, Guntupalli and Tirupathi

Construction Accounts Offices at Secunderabad, Vijayawada & Rajahmundry.

Construction Audit Sections at Secunderabad, Vijayawada and Rajahmundry.

Internal check of all establishment charges relating to the Indian Railways Institute of Signal Engineering and Telecommunications, Secunderabad and Railway Recruitment Board, Secunderabad, C-TARA and Railway Claims Tribunal is done in the Financial Adviser and Chief Accounts Officer's Office, Secunderabad and consequently, the responsibility for the audit of these charges on the Railway devolves on Establishment Headquarters Section. Provident Fund Accounts of the Gazetted Officers of all the Departments and of the non-gazetted employees of Security Department and the Survey and Construction

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Organisations are dealt with in the Financial Adviser and Chief Accounts Officer's office, Secunderabad. Audit of these P.F. Accounts is accordingly conducted in Establishment Headquarters Section. The Provident Fund Accounts of the staff of Construction Accounts Offices are maintained in the respective Divisional Accounts Offices. They are audited by the respective Divisional Audit Offices. The Provident Fund Accounts of the staff of the Office of the Principal Director of Audit maintained in the Office of Financial Adviser and Chief Accounts Officer are also audited in the Establishment Headquarters Section, as locally decided by the Principal Director of Audit. 702. Audit of Sanctions: The general principles of audit of sanctions and the method of audit mentioned in the Chapter on "Expenditure Audit" apply to the sanctions relating to establishment charges also. (Paras 2.2.34 to 2.2.45 - Manual of Standing Orders(Audit) and Paras 6, 7, 132, 133 and 202 of Railway Audit Manual). The sanctions dealt with in the Establishment Audit Sections generally relate to: 1. Creation, extension to currency or abolition of posts. 2. Fixation of pay. 3. Honoraria and fee 4. Rewards 5. Retention of quarters 6. Advances 7. Forfeiture of Provident Fund 8. Withholding of special contribution to Provident Fund 9. Write off of over-payments 10. Ex-gratia payment etc. 11. Special sanctions accorded by Board/General Manager/HOD relating to reimbursement of heavy amounts of medical expenses of personnel who have undergone treatment outside Railway Hospital, and 12. HOD sanctions in regard to Messing Advance to certain personnel of Security Department. The sanctions should be audited with reference to the canons of financial propriety, the Schedule of Powers and the scales of pay sanctioned by the Railway Board from time to time. The scrutiny of sanctions should cover a review of the Accounts Office files containing the proposals therefor and the financial concurrence etc. and also departmental files wherever necessary. All sanctions coming up for audit should be put up to the Branch Officer with notes containing the results of the review of the files. All the sanctions for the creation or abolition of posts and those for conversion of temporary posts into permanent posts should, after scrutiny and acceptance in audit, be traced into the Scale Check Registers/Cadre Registers maintained in the Accounts Office. It should also be seen that sanctions for creation of temporary posts and their extension are posted in the Limited Currency Registers/Scale Check Registers for temporary establishment maintained in the Accounts Office for watching the operation of the posts only for the periods sanctioned. The Railway Administration creates new posts in the non-gazetted cadre in any of the Revised Scales shown for the category in the schedules of existing and Revised Scales of Pay issued by the Railway Board, with the concurrence of the Financial Adviser and Chief

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Accounts Officer. In respect of sanctions for creation of new posts by authorities subordinate to the Railway Board, it should be ensured that such posts are included in the schedules of existing and Revised Scales of pay issued by the Railway Board. Important objections raised on Railway Board's sanctions and all major Audit objections raised during the previous quarter on any other subject not covered by the above two categories, should be included in the Quarterly Arrear Report (Proforma 'A'). 703. Audit of Pay Bills: The field is divided into prescribed number of units, separately for Gazetted Officers and Non-Gazetted Officers and the required number of units selected is audited monthly. Even if some items are only selected from a pay sheet, the correctness of totals and allocations of the entire paysheet should be checked completely. (Paras 3.2.1 to 3.2.9 of Manual of Standing Orders(Audit) and Paras 201-221 of Railway Audit Manual). Separate selections should be taken in regard to pay bills pertaining to Family Planning Unit and such pay bills audited every month and not when Medical Unit Pay Bill is selected for audit. Consequent on the judgement of the Supreme Court, the Ministry of Railways have decided that the employees of Statutory and Non-Statutory (recognised) canteens should be treated as Railway servants with effect from 1.4.1990. Therefore, the staff canteens on South Central Railway should be included in one of the prescribed units into which the whole field is divided. The contents of Railway Board's Lr.No.E(W)91/CN/Master Circular No.38 dated 29.11.1991 are to be kept in view while conducting audit. (Authority: P.O.O. No.122 dt.23.12.1991). To maintain an element of surprise, different months of account may be selected for Gazetted Officers and Non-Gazetted Officers’ pay sheets and audited in the 3rd or 4th following month. Supplementary bills relating to the unit selected should also be included in the selection. In addition to the points to be seen during the audit of vouchers, in general, vide Para 269 of Railway Audit Manual, the check of the pay bills will include the scrutiny of the following: 1. Fixation of pay on first appointment and refixation of pay. 2. Appointment. 3. Leave Salary 4. Subsistence allowance 5. Dearness, House Rent and other allowances. 6. Provident Fund recoveries. 7. Rent, water, conservancy etc. charges 8. Electrical energy charges 9. Diet charges 10. Other recoveries 11. Recovery of advances

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12. Scale or Cadre Check 13. Allocation. 14. Transport Allowance. 704. Fixation of pay on first appointment and re-fixation of Pay: All cases of fixation of pay on first appointment and refixation of pay should be audited to the extent prescribed. In regard to the general revision of scales of pay, including upgradation of certain categories of staff, orders of Principal Director of Audit should be obtained regarding the extent of check. (Para 216 of Railway Audit Manual). 705. Officiating appointment: Railway Board's letter No .E(G)64/EC2/6 dated 9th July 1964 indicates the manner in which short term vacancies may be filled. According to this letter, short term vacancies may be filled in normal manner in cases where (a)

the duration of the vacancy exceeds 30 days or

(b)

the total duration of a continuous chain of vacancies of shorter periods exceeds 60 days. (Para 212 of Railway Audit Manual)

Officiating promotions in vacancies of 30 days' duration or less may be made only in exceptional circumstances with prior personal approval of the Head of the Department. This is subject to certain exceptions contained in Railway Board's letter No. E(R)/49-RS-3 dated 1st July 1949,No. E(T)53-TRR-57 dated 6th August,1955 and No PC60/PP-1/1 dated 11th July, 1961. As regards the officiating appointments of running staff, it should be seen that they are according to the special rules applicable to them. 706. Leave Salary: Leave salary should be checked with reference to the absentee statements and last pay drawn. Correctness of Dearness and other allowances drawn during the period of leave should also be checked. 707. Subsistence allowance: Subsistence allowance drawn in the pay bills coming under audit or drawn separately, but pertaining to the unit selected for audit, should be checked. It should be seen that the subsistence allowance is drawn in accordance with Para 1342.R.II. The subsistence allowance and other allowances granted to the employees under suspension should be traced into the register maintained by the Accounts Office for subsequent adjustment when the disciplinary authority passes final orders regarding the pay and allowances to be paid to the employees for the period of suspension. 708. Dearness Allowance and other Allowances: The auditors should maintain ready reckoners showing the rates of Dearness Allowance, House Rent Allowance, City Compensatory Allowance, Night Duty Allowance, National Holiday Allowance, Running Allowance, Over-Time etc. applicable to the different pay ranges and to different areas, in the register maintained in terms of Para 111 of Railway Audit Manual for ready reference during audit. In the case of over-time allowance, running allowance, night duty allowance etc. it should be seen that particulars of over-time hours/mileage/hours of night duty and the amount of allowances are indicated in the pay bills and are correct. It should also be ensured

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that employees in respect of Night Duty Allowance etc. belong to the category entitled for such allowances. In the case of Transport Allowance, it should be ensured that it is not drawn during leave, training tour etc exceeding 30 days. (Para 213 of Railway Audit Manual). 709. Payment of out-turn allowance to Signallers/Teleprinter Operator: Payment of outturn allowance to signallers is governed by the instructions contained in Railway Board's letter No.E(P&A)II/86/AL/1 dt.15.12.1989 read with letter No.E(P&A)T-98/A14 dt.12.2.1999. Detailed check of the payment of out-turn allowance (for one month) is exercised during the inspection of the office of Divisional Railway Manager(Signal and Telecommunication). During central audit, the check in respect of this allowance may be confined to check of arithmetical accuracy of the amounts paid. 710. Provident Fund Recoveries: The correctness of the Provident Fund subscription recovered should be checked. It should be seen that recovery is made from all staff who have completed one year's service. This can be generally checked by seeing that recoveries are made from all those who have drawn the first increment in their pay scale. (further reference to Para 731) The deductions made in the selected pay sheet should be traced into the deduction lists. Tracing of Provident Fund deductions appearing in the Labour Pay sheets in deduction list and from the latter to the Provident Fund Ledgers should be done to the extent prescribed in respect of the employees included in the Labour Pay sheets checked during inspection. The Provident Fund Accounts of Gazetted Officers and employees of Headquarters including Construction Headquarters are maintained in the Financial Adviser and Chief Accounts Officer's office and the Provident Fund Accounts of the Construction Accounts staff are maintained in their respective Divisional Accounts Offices. The Divisional, Construction and Workshop Audit offices should send statements to Establishment Headquarters Section and to the concerned Divisional Audit Offices furnishing the names, Provident Fund Account numbers and the amounts of Provident Fund recovery of all the Gazetted Officers and Non-Gazetted Officers selected for audit. The Establishment Headquarters Audit Section and the Establishment section of the Divisional Audit Offices should make use of these statements for tracing the Provident Fund recoveries into the connected Provident Fund Accounts and for the audit thereof. Similarly, in respect of staff of this office, the Administration section should also furnish every month a copy of the General Provident Fund recovery statement to the Establishment Headquarters Audit section every month for tracing the Provident Fund recoveries into the connected General Provident Fund Accounts. (Au/EHQ/Secret/1/4 dated 22.10.1981). 711. House Rent, Water and Conservancy Charges: The pay bills of the unit selected for audit should be completely checked. In respect of pay bills for other months, variation statements relating to the unit selected for audit should be linked with the variation statements of the previous months, if necessary. The correctness of the water charges recovered should be checked with reference to the type of quarters and the rates fixed by the Railway Administration, from time to time.

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712. Electricity Charges: The Electricity charges are centrally fed by the Electrical Department. The correctness of these charges to be verified by the concerned divisions during their local inspections. (Authority: 713. Diet Charges: Statements of Diet Charges are received in the Accounts Office every month in respect of each paysheet unit. It should be seen that the bills are serially numbered paysheet unit-wise and the missing numbers should be called for by the Accounts Office. Recoveries actually made through the pay bills, as indicated in the copies of the diet charges statements attached to the paysheet, should be compared with the recovery statement received in advance in the Accounts Office. It should also be seen from the statements received in the Accounts Office that recoveries are promptly made and action is taken wherever necessary. The diet charges wherever directly fed by the Medical Department, the correctness of these charges are to be verified during local inspections. (Authority: 714. Other Recoveries: It should be seen that the amount of school fee, Railway Institute fee, Court attachment etc. actually recovered in the pay bill agrees with the amount shown in the deduction statements. In regard to school fee, it should also be seen that the rates are correct. 715. Recovery of Advances: It should be seen that the recoveries towards repayment of Advance of Pay, Leave Salary, Festival Advance, Conveyance Advance, House Building Advance etc. are promptly made in the pay bills as per extant orders. The entries in the recovery statements should be checked with reference to the actual recoveries made in the paysheets. In case of an incumbent’s transfer from one bill unit to another, the recovery particulars advised through the Last Pay Certificate (LPC) should be verified to ensure prompt recovery. The Register of Travelling Allowance Advances and the Register of Leave Salary Advances maintained in the Accounts Office should be reviewed every month along with the audit of pay bills. In respect of items relating to the unit, it should be seen that there is no delay in recovery of the advance or that there are no old items outstanding. 716. Scale Check: With reference to the pay sheets selected for audit, the actual number of posts operated should be traced into the Scale Check Registers. Scale check should be done for the entire paysheet and not for the selected items only. It should be ensured that cases of operation of posts in excess are placed under objection. (Para 223 of Railway Audit Manual). 717. Allocation: The correctness of allocation should be checked. The amounts allocated should be traced into the Works Registers or Revenue Allocation Registers, as the case may be, in respect of the bills audited. 718. Unpaid Wages: The unpaid amounts in the bills selected for audit should be traced into the unpaid wages statement.

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719. Labour Pay Sheets: Labour pay sheets are required to be checked during local inspections. All the points to be seen during the audit of regular pay bills of Non-Gazetted Officers should be looked into during the audit of paysheets of regular gangs also. (Para 275 of Railway Audit Manual). 720. Travelling Allowance Bills: The travelling allowance of Railway employees other than Gazetted Officers, Workshop staff and running staff is included in the regular salary bills. The travelling allowance journals of staff whose pay exceeds the prescribed limit are submitted to the Accounts Office every month by the bill passing officers, in duplicate. After internal check, one copy is returned to the bill passing office and the amounts accepted by the Accounts Office are included in the Pay Sheets. Audit of travelling allowance bills is confined to the employees selected for audit of pay bills. The connected travelling allowance journals should be obtained from the Accounts Office and audited. Travelling Allowance Journals which are not sent to the Accounts Office should be seen during inspections. Wherever travelling allowance is drawn in separate bills, selection should be taken for audit in the same manner as for pay bills. (Paras 3.2.15 of Manual of Standing Orders(Audit), Para 222 of Railway Audit Manual and Paras 1213-1214 of Accounts Code I). 721. Points to be seen during the audit of Travelling Allowance Bills: In addition to the points mentioned in Para 222 of Railway Audit Manual, the following points should also be seen during the audit of Travelling Allowance Bills: 1. The rate of pay indicated in the Travelling Allowance Journals should be checked with the rate of pay given in the pay bills. 2. Taxi hire should be checked with reference to the instructions contained in Para 726 of the Indian Railway Establishment Manual. 3. In respect of journeys by air, the sanction of the competent authority is available wherever necessary, vide Paras 1636-1639 of the Indian Railway Establishment Code, Vol.II. 4. Necessary sanction has been obtained for the journeys beyond the sphere of normal duties and for continuous halts beyond the limits fixed, and 5. Necessary certificates are recorded on the Travelling Allowance Journals. As the Travelling Allowance Journals in respect of staff whose pay does not exceed the prescribed limit per month are kept in the departmental offices, they will be checked during local inspections. Number of days and the rates of daily allowance are shown in such cases in the pay sheets. The correctness of the amount of Travelling Allowance drawn should be checked with reference to these particulars. 722. Pay Orders for Payment of unpaid wages: Pay orders for payment of unpaid wages should be audited in accordance with the instructions contained in Para 386 of Railway Audit Manual.

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723. Journal Vouchers: See Para 620 of Chapter VI of this Manual on 'Expenditure Audit' (Current Review selection of Journal Vouchers should follow the pattern of selection for audit). 724. Payments under Workmen's Compensation Act: Payments under Workmen’s Compensation Act should be audited with reference to the provisions of the Act. Railway Administration's files containing the original accident report, medical report, enquiry committee reports, etc. if any, should be referred to. It should be seen inter alia that: 1. the person concerned belongs to the category of staff eligible for compensation under the Workmen's Compensation Act, 2. the fact of the injury and the nature of the injury are properly certified and the injury has not been attributed to negligence, 3. monthly wages for assessing the compensation, the amount of half monthly payment and lumpsum compensation are correctly calculated, and 4. half monthly payments are adjusted against the final payment. It should also be ensured that in respect of Railway accidents, Railway men are paid compensation either under Workmen's Compensation Act or under the Indian Railway Act depending upon whether the Railway men were working in the train or were travelling as passengers at the time of accident. (Para 1201 RI, Chapter XXIII of Indian Railway Establishment Manual and Para 232 of Railway Audit Manual). 725. Advance of Pay, Travelling Allowance, Leave Salary etc.: It should be seen that the advances are sanctioned (in accordance with the rules contained in Chapter X of Indian Railway Administration and Finance - An Introduction) by authorities competent to do so and that the payments are correctly posted in the Registers of Advance to ensure recoveries. While tracing the postings in the 'Advances' Registers, it should be generally seen that there are no delays in the recovery of advances or that there are no old debits outstanding. In the case of Advance of Pay/Travelling Allowance on transfer, it should also be seen that these are correctly indicated in the Last Pay Certificate. In respect of Travelling Allowance Advances, it should be verified whether they have been adjusted on completion of journey or by 31st March, whichever is earlier. In respect of advances granted in March, it should be seen that they are recovered before 30th April. (Paras 1001-1015 of Administration and Finance, Paras 1217and 1218 of A-I, and Paras 3.13.14 to 3.13.16 of Manual of Standing Orders (Audit) and 220 of Railway Audit Manual). 726. Festival Advance: Festival Advance drawn in the pay sheets selected for audit should be checked. (ADAI (R)'s letter No.RAI/8-7/66/Vol.I dated 27.10.1967). It should be seen that the advance has been drawn by the employees before the date of the festival and not later than that date and that the advance is not paid to any employee whose pay is beyond the prescribed limit. Under the revised procedure for the recovery and accountal of festival advance, the Accounts Office registers will show only the total amount of advance drawn in each pay sheet for each festival. The correctness of the posting of the total amount relating to

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each pay sheet unit in the Accounts Office Register should be checked. Instructions laid down in Railway Board's letter No.61/AC.II/21/25 dated 26.11.1962 and 8.6.1965 may also be borne in mind. 727. Medical Attendance Bills of Gazetted Officers: Medical Attendance Bills of Gazetted Officers serving or retired, should be audited to the same extent as pay bills. The rules contained in Chapter 6 of the Indian Railway Establishment Code Volume-I, should be borne in mind. The following points should be specially seen: 1. The Officer has been duly authorised to undergo treatment in the Government hospitals before hand or in emergent cases, ex-post facto sanction has been given by the competent medical authority. 2. The claim has been preferred within six months from the date of completion of treatment. 3. The claim for reimbursement of charges is supported by vouchers and certificates in writing by the Authorised Medical Attendant. 4. In the case of refund of cost of medicines, the Authorised Medical Attendant has furnished a separate certificate of essentiality under the extant orders. 5. If the claim is for refund of charges for treatment at the residence of the employee, the Authorised Medical Attendant has given a certificate stating the reasons for giving treatment at the residence and the cost of such treatment as he would have been entitled free of charge to receive if he had not been treated at his residence. (Para 230 of Railway Audit Manual). 728. School Fee Bills: Educational assistance is admissible to all regular Railway employees whose pay is debitable to Railway Revenues in accordance with the instructions contained in Railway Board's letter No.E/W/84.EDI-1 dated 4.10.1985 as amended from time to time. During the audit of Educational Assistance Bills, the following points should be seen. 1. The child/children in whose favour the assistance is claimed is/are eligible for it. 2. The assistance is admissible in respect of classes/courses for which the claim has been made. 3. The pay limit of the employee for eligibility of the assistance is not exceeded. 4. The school in which the child studies is a recognised one and of requisite standard. 5. Prescribed certificates are produced by the employee,and 6. The allowance claimed is according to the rates prescribed. 729. Reimbursement of Tuition Fees: Reimbursement of Tuition Fee is admissible to Railway employees according to Railway Board's letter No.E/W/84 EDI-I dated 4.10.1985 as amended from time to time provided no Children’s Educational Allowance is admissible to such Railway servants. The reimbursement is restricted to tuition fee only and will not cover Domestic Fund charges, Library Fee, Games fee, Admission fee and extra curricular activity fee.

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Bills for reimbursement of tuition fees in respect of children of Railway employees (both Gazetted and Non-Gazetted) should be audited to the extent prescribed vide CAG's letter No.3023-RAI/8-14/64 dated 17.10.1966. Where claims for reimbursement of tuition fees are included in the salary bills/labour pay sheets, all the claims included in the bills selected for audit should be checked. (CAG's letter No.355-RAI/8-1/72 dated 31.1.1972). It should be seen during the audit of the claims for reimbursement of tuition fee that the claims are paid in respect of the classes permissible, at the rates prescribed, and are supported by the certificates prescribed. The records indicating the particulars of the children, amount of tuition fees claimed, certificates produced in respect of the claim etc. should be checked during local Inspections. 730. Staff Benefit Fund: Contributions from the Railway revenues should be checked with reference to Para 805 of R.I. (This should be done by Establishment Headquarters Audit Section). It should be seen that the expenditure has been incurred only on objects covered by the Railway Board's policy as well as local rules. Sanctions need not be audited as a separate item. (Chapter 8 of R.I. and Para 247 of Railway Audit Manual). In addition to the check of one month's accounts in a year, a general review of the accounts of the entire year may be carried out. The accounts of the grantees to whom substantial lumpsum grants were sanctioned during the year may also be checked after obtaining the orders of Principal Director of Audit. (ADAI(R)'s letter No.798-RAI/17-6/66 dated 18.3.1967). 731.Audit of Provident Fund Accounts: Audit of Provident Fund section should be conducted during the month of October / November (after PF ledgers for the previous year were closed) annually – to the extent specified in SMI (Appendix to Chapters on Railway Audit Norms). During the audit of the ledger accounts, it should be seen whether the contributions credited to the account in the previous half-year are correct, whether the closing of the account and the calculations of interest for the previous year have been correctly done according to the rate of interest applicable to the persons concerned, whether recoveries on account of advances are being regularly made in accordance with the rules. In the case of new accounts, it should be seen whether the employee is eligible to subscribe to the Fund. The deductions made from salary bills of Gazetted Officers and Non-Gazetted Officers towards Provident Fund should be traced into the deduction sheets and the latter into the ledgers maintained by the Accounts Office. Instructions contained in Para 710 of this Manual may be borne in mind. (Chapter 9 of RI, Chapter IX A.I. Section III - Chapter 11 of Manual of Standing Orders (Audit) and Para 237 et seq. Railway Audit Manual).

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732. Temporary Withdrawals from Provident Fund: All advances from Provident Fund which are recoverable are treated as temporary withdrawals. It should be seen that the advances have been sanctioned by the competent authority and that the conditions under which such advances can be sanctioned are fulfilled. In respect of temporary withdrawals for financing insurance policies (Paras 927-938-R.I.), it should be seen that the insurance policies have been assigned to the President and delivered to the Accounts Officer. The temporary advances passed in such cases should be traced into the Register of Insurance Policies maintained by the Accounts Office. It should be seen that the particulars of the receipts for the Insurance Premia are noted in the registers and where the employees have defaulted in paying the premia, action has been taken in terms of G.O.I decision under Rule 937-R.I. In cases where the policies have matured before the retirement of the employee, it should be seen that the total amount withdrawn with interest has been repaid to the fund by the employee. (Paras 922-23 of R.I., Para 3.12.6 of Manual of Standing Orders (Audit) and Para 238 of Railway Audit Manual). 733. Final Withdrawals from Provident Fund: All withdrawals from Provident Fund in full or in part which are not recoverable should be treated as final withdrawals and audited in accordance with the instructions contained in Para 233 of Railway Audit Manual. It should be seen in settlement cases that the interest upto the date of tendering payment have been correctly calculated and that all the amounts due from employees have been ascertained. In the case of deceased employees, it should be seen that the payment is made to the persons legally entitled to receive the same. (Paras 924-925-940 of R.I. and Para 239 of Railway Audit Manual). 734. Reconciliation of Provident Fund Ledger Accounts with General Books: Reconciliation of Provident Fund Ledgers with General Books should be reviewed every month. The postings from the individual ledgers into the check sheets should be traced in respect of Provident Fund accounts checked. Totals of the check sheets in respect of these and other Provident Fund accounts relating to the unit selected for the audit of pay bill should be checked completely and traced with the Departmental summary. Totals for all Departments should be traced into the Summary Ledger. The grand total should then be reconciled with the General Books. Detailed procedure for the reconciliation of Provident Fund Ledgers with General Books under the simplified procedure laid down in Railway Board's letter No.63/AC.II/Dir(Spl)21 dated 22/24.8.1964 may be borne in mind. It should also be seen that differences are analysed and rectified immediately. (Para 244 of Railway Audit Manual). 735. Interest Credits: In checking the interest credits, the instructions contained in Para 240 of Railway Audit Manual should be borne in mind. 736. Verification of pensionable service: Verification of service of pensionable employees of other than Accounts Department should be done to the extent prescribed during inspections. As Accounts Offices are not inspected, pensionable service of the Accounts Office staff should be verified every month to the extent prescribed. In respect of the Service

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Register selected, it should be seen that the instructions issued by the Railway Board vide letter No.57.ACII/21/20/Pension dated 9.5.1960 for verification of service of pensionable employees are correctly followed. The correctness of the certificate of verification for the first year of service and one intermediate year of service should be checked with reference to the paid pay bills if available, or office copies of the pay bills and office orders or other records. Last year of pensionable service should be verified with reference to the paid pay bills when the pension cases are audited. (Para 1230 of Indian Railway Administration and Finance - An Introduction). 737. Audit of Pension: Pensionary benefits granted to Railway servants in respect of their service generally fall under one or other of the following categories. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Superannuation pension. Retiring pension. Pension on absorption in or under a corporation, company or body, owned or controlled or financed by the Govt. Invalid pension. Compensation pension. Compulsory retirement pension. Compassionate allowance. Service gratuity Retirement gratuity. Death gratuity. Residuary gratuity Family pension Terminal gratuity.

Audit of pension consists in verifying that the qualifying conditions governing the grant of pension are fulfilled and that the amount of pension sanctioned and drawn is correct. The rules/instructions contained in Chapter.18-R-II, Section III Chapter 6 of Manual of Standing Orders (Audit), the Manual of Railway Pension Rules embodying the provisions of Liberalised Pension Rules 1950 and Para 249 of Railway Audit Manual should be borne in mind. All Railway employees who were pensionable on 15th November, 1957, nonpensionable Railway servants who were in service on 15th November, 1957 and who elected to come under the pension scheme and all persons entering Railway service on or after 16th November, 1957 except those who are appointed on contract or re-employed after superannuation or whose terms of appointment specifically provide to the contrary are governed by the Liberalised Pension Rules. When the whole period of employment of an employee is in one or more of the following capacities, no claim to pensionary benefits is admissible. 1. 2. 3. 4. 5.

In part-time capacity (e.g., Railway Pleader) As Casual Labour As an Apprentice In a non-pensionable post In a post paid from contingencies

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6. 7.

Under a covenant or a contract which does not specifically provide for grant of pensionary benefits. Work done on payment of a fee or honorarium.

Pension is granted to a permanent Railway servant who quits service after completion of minimum 10 years qualifying service. A permanent Railway servant who quits service before completion of 10 years is given an ordinary gratuity but no pension. A permanent Railway servant on quitting service, or his family/nominee in the event of his death while in service, is entitled to retirement or death gratuity/pension or family pension, as the case may be. During the audit of pension, it should be seen that 1.

the qualifying service is correctly arrived at with reference to Service Register entries,

2.

the service records and leave accounts are properly maintained,

3.

necessary certificate regarding service verification is recorded annually,

4.

statement showing the pay drawn during the last ten months of service is checked with Service Register and leave account to verify the correctness of the emoluments of the ten months period,

5.

the pay drawn in the last pay certificate and the outstanding dues etc. are correctly reflected,

6.

the fact of issue of payment authority for pension is noted on the Provident Fund Ledger Account, and

7.

a remark is given in the Service Register that the pension and DCRG have been passed for payment.

(i) Compensation Pension or Gratuity: If a Railway servant is selected for discharge owing to the abolition of a permanent post, he shall unless he is appointed to another post, the conditions of service of which are deemed by the authority competent to discharge him from service to be atleast equal to those of his own, have the option: 1.

of taking compensation pension to which he may be entitled for the service he had rendered, or

2.

of accepting another appointment on such pay as may be offered and continuing to count his previous service for pension.

(a)

(ii) Invalid Pension: Invalid pension may be granted to a railway servant who retires from service on account of any bodily or mental infirmity which permanently in capacities him for the service, after undergoing the prescribed procedure for medical examination

(iii) Superannuation Pension/Gratuity: A superannuation pension is granted to a Railway servant rtired on attaining the age of compulsory retirement.

205

Ch.VII - Page 14 of 19

(iv) Retiring Pension/Gratuity: A Railway servant may retire from service at any time after completing 20/30 years qualifying service, provided that he shall give in this behalf a notice in writing to the appropriate authority, atleast three months before the date on which he wishes to retire. A Railway servant who retires or is required to retire in terms of Rule 1804R.II on or after attaining the age of 55 years shall also be entitled to a retiring pension/gratuity. A Railway servant who has completed less than ten years' qualifying service is entitled to only a gratuity. Pension is granted to Railway servants who have completed ten or more years' qualifying service. The amount of compensation, invalid or superannuation gratuity/pension, will be the appropriate amount set out in the table given in Para 624 of Manual of Pension Rules 1950. (v) Retirement/Death Gratuity: A Railway servant on his retirement or his family in the event of his death while in service, may be granted a retirement/death gratuity as specified in Chapter VII of the Manual of Railway Pension Rules 1950. 738. Family Pension: Under the Family Pension Scheme for Railway employees 1964, Family Pension at the scales mentioned in Chapter VIII of Manual of Railway Pension Rules may be sanctioned to the widow/widower, unmarried son/daughter widowed divorced daughter sons/daughters suffering from disorder or disability of mind or physically crippled and dependent parents and to the minor children of a Railway servant who entered service on or after 1st January, 1964, or having entered service prior to that date has opted for family pension, if such a Railway servant i)

dies while in service on or after 1st January, 1964, after completion of not less than one year's continuous service, or

ii)

retires on or after 1st Janaury, 1964, and at the time of his/her death was in receipt of compensation, invalid, retiring or superannuation pension.

While auditing family pension cases, the instruction contained in Chapter VIII of Manual of Railway Pension Rules may be borne in mind. 739. Commutation of Pension: Only ordinary (Compensation, Invalid, Superannuation and Retiring) Pension may be commuted. Commutation of family pension is not permissible. The maximum amount of pension that can be commuted is 40% of the Pension rounded off to the Rupee(Railway Board's letter No.F(E)III/97/PN.I/22 dt.5.11.1997). It should be seen that the temporary increases allowed on the pension after commutation is based on the gross pension that is, including the value of commuted pension. The detailed instructions regarding commutation of Pension is given in Chapter XII of Railway Board Manual which may also be borne in mind during the check of these cases. 740. Ex-gratia Pension: The extent of checks prescribed against pension payments applies to ex-gratia pension granted with effect from 1.1.1967 to Railway employees who retired on Provident Fund prior to 1.4.1957, after putting in 20 years service or more. (ADAI(R)'s letter No.5016-RAI/4-1/17 dated 16.12.1967).

206

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Adhoc increase in pension is not payable to retired employees in receipt of exgratia pension. Payment of ex-gratia pension is arrange by the Railways themselves and not through Accountants General. 741. Check of paid vouchers of pension: Paid vouchers of Pension should be checked quarterly. Selection should taken with reference to the vouchers adjusted during the month selected. The selected vouchers should be traced into the Pension Payment Register maintained centrally at Headquarters (FA&CAO's) Office. For this purpose, the Divisional Audit Officers/Audit Officers should send in the first week of July, October, January and April every year only the items of Pension Pay Orders connected with the pension cases audited quarterly. The amount of Pension paid through the vouchers should be checked with the Pension passed i.e., as indicated in the Check Register-Correctness of the adhoc increase allowed should also be checked. (Authority: Au/EHQ's Lr.No.Au/EHQ/1-4/Vol.III/187 dt.22.8.1991). 742. Check of paid vouchers/gratuity: All paid vouchers relating to the cases selected for check of Death-cum-retirement gratuity should be called for and checked, when the DCRG cases are checked. As this amounts to more than the prescribed percentage of the total number of vouchers, a separate selection and check of paid vouchers is not necessary. Separate selection should be taken in respect of vouchers of family pension. The declaration regarding remarriage furnished by the pensioner every half year should also be scrutinised in respect of the vouchers selected for audit. 743. Audit of Vouchers relating to Family Planning: Expenditure on Family Planning Scheme incurred by the Railways is reimbursed by the Ministry of Health and Family Planning, through the Director of Audit, Central Revenues. The Principal Directors of Audit are required to furnish an yearly certificate to the Director of Audir, Central Revenues, to the effect that the expenditure incurred on the Railway has been audited. To enable the Principal Director of Audit to furnish the required certificate, it has been decided by the Comptroller and Auditor General vide his letter No.2178-RAI/5-9/64 dated 31.7.1964 that the vouchers relating to expenditure on Family Planning should be test checked after taking separate selections to the extent prescribed in regard to the various classes of vouchers. It should also be ensured that the charges billed for include additional charges in terms of Para 2021.R.II. 744. Audit of Contingent Expenditure: Contingent vouchers of Accounts Department should be audited monthly to the extent prescribed. Contingent bills passed by the Expenditure Accounts sections should be checked by Expenditure Audit section and those passed by Establishment and Provident Fund Sections by the Establishment Audit section. Contingent Vouchers of other than Accounts Department should be checked during Local Inspection to the extent prescribed. (Chapter X of Indian Railway Financial Code Vol.I, Rule 89, GFR-Section III, Chapter 4 of Manual of Standing Orders(Technical) and Para 227 of Railway Audit Manual and Appendix to the Chapters on RANs may be seen). 745. Fees and Honoraria: During the audit of fees and honoraria it should be seen that the undertaking of work entitling the Railway servant for receipt/drawal of fees/honoraia has been sanctioned by the Competent Authority in terms of Para 2035 R.II. It should be seen that honoraria are paid at the rate prescribed by the Railway Board.

207

Ch.VII - Page 16 of 19

The register maintained in the Accounts Office to record the particulars of the employees authorised to accept fees should be reviewed. It should be seen that the Railway's share has been correctly assessed and recovered before making payment to the employee. When sanctions are accorded by the competent authorities for the acceptance of fees by employees and these are scrutinised in audit, it should be seen that the particulars are duly recorded in this register. The register should be reviewed to see that the fees have been actually credited in full that Government's share has been worked out correctly before making the payment to the employee. (Para 1334 of R.II and Paras 2213, 2216 of R.II and Para 213 of Railway Audit Manual). 746. Review of Scale Check Register/Cadre Register: The annual review of Scale Check Registers, will be done to ensure that the entries made in regard to the sanctioned posts are correct with reference to the previous Scale Check Register and the sanctions accorded during the year. It should be seen that sanctions to temporary establishment are recorded separately in the Scale Check Register. In respect of sanctions for temporary posts, it should also be seen that the posts are not operated beyond the date of currency, and wherever the posts are operated beyond the date of currency, the same have been noted in the Provisional Payments Register. (Para 223 of Railway Audit Manual). 747. Leave Account: Lists of all Gazetted Officers of all Departments and non-Gazetted Officers of Accounts Department should be maintained upto date and selected for audit. The selected leave accounts should be checked completely from the commencement of service or from the last entry checked in audit. Personal files containing the leave applications may also be referred to verify the correctness of the entries in the leave account. (Para 3.3.8 of Manual of Standing Orders(Audit) and Para 228 of Railway Audit Manual). 748. Register of Irregularities, Losses and Overpayments waived - maintained in the Accounts Office: The registers maintained in Establishment and Provident Fund sections should be reviewed. In the case of write off, it should be seen that each case has been sanctioned by the competent authority. The connected files should be examined to see whether adequate action has been taken to obviate the recurrence of the irregularities. Undue delay in finalisation of important cases should be taken up with the Administration. (Paras 861 of A-I and Paras 492 and 477 of Railway Audit Manual). 749. Disallowance Lists: The disallowance lists and objections should be reviewed to see that proper action is taken to clear outstanding items. Cases where the objections have been dropped without adequate grounds should be taken up. It should be seen whether the objections raised reveal any special features or irregular procedure requiring further investigation in audit, whether there has been generally any inordinate delay in the disposal of the objection and whether the objections have been regularised satisfactorily.

208

Ch.VII - Page 17 of 19

(Paras 846 to 851 of A-I, Chapter XI of Indian Railway Administration and Finance - An Introduction and Para 224 of Railway Audit Manual). 750. Miscellaneous Advances including House Building and Motor Car Advances and Deposits Miscellaneous: The registers maintained in the Establishment and Provident Fund Sections should be reviewed annually in accordance with the instructions contained in Paras 610 and 614 of A.I. (Paras 223 and 225 & Chapter VI-A-I, and Paras 381 and 382 of Railway Audit Manual). 751. Cost of Order Police: The Railway Administration is required to satisfy itself of the correctness of the debits raised by the State Governments with reference to the statements sent by the latter in support of the debit schedules. The adjustments effected by the Financial Adviser and Chief Accounts Officer should be scrutinized to see if the debits are in accordance with the arrangements in force for charging to the Railway 50% of the cost of order police and in accordance with the strength of Police staff fixed by competent authority. (Paras 856 to 866 of Indian Railway Financial Code-Vol.I). 752. Register of Foreign Service Contributions: The recoveries of foreign service contributions should be checked with reference to the rules and instructions contained in Paras 2006-2012 and 2021-R.II, Para 1221-A.I & Para 219 of Railway Audit Manual. The entries in the register should be checked with reference to (i) (ii) (iii)

the previous year's register, the register of last pay certificates in regard to staff transferred out of the Railway, and sanctions for transfer whenever such sanctions come under audit.

753. History of Services of Officers of the Railway Department: Selection should be made separately for Accounts and other than Accounts Department. The correctness of the entries made in the statement should be checked with reference to the original records of service maintained in the Accounts Office. (Para 231 of Railway Audit Manual). 754. Audit of transactions relating to Deposit Linked Insurance Scheme: These payments should be checked to the same extent and in the same manner as for final withdrawals from Provident Fund. It should be seen that the average balance for the last 3 years before death has been correctly worked out. (Para 241 of Railway Audit Manual). 755. Audit of Railway Employees Group Insurance Scheme: The scope of check is mentioned below. (a)

Office copies of the Schedule (as per Annexure 'A' of the accounting procedures prescribed under Para 3 of Railway Board's letter No.79 ACII/1/4 dated 18.11.1981) attached to the Bill for the month of January each year should be checked with reference to the pay bills during inspection of executive offices.

209

Ch.VII - Page 18 of 19

(b)

The nominations made by Railway servants under the scheme may be verified while checking the service books during the inspection of the executive/personnel offices. In the case of staff of the Accounts Office for which there is no local inspection, the check at (a) above should be carried out in Central Audit as an annual item. The check at (b) above should be done every month along with check of Service Registers of Accounts Office staff.

(c)

Payments from Insurance Fund and Savings Fund as recorded in the Register as per Annexure (B) Pt.II and III to the accounting procedure ibid should be checked to the extent prescribed, with reference to the table of benefits admissible, as issued by the Railway Board, and nominations made by the Railway servants, as posted in their service records, and

(d)

Based on the advance schedules showing total recoveries and payments during a month furnished by the various Divisions/Workshops/other units, the Financial Adviser and Chief Accounts Officer (Central Book Section) arranges payment of the net amount to the Pay and Accounts Officer, Ministry of Finance (Department of Expenditure). The advance schedules as consolidated in the Financial Adviser and Chief Accounts Officer's Office should be checked once a year to see that the total amounts of recoveries and payments which determine the net amount payable to the Ministry of Finance agree with the corresponding amount in General Books. This check will be exercised by Books and Budget Headquarters Audit section. (Para 242 of Railway Audit Manual). (CAG's letter No.70 RAI/77 dated 1.3.1984).

756. Audit of Productivity Linked Bonus Bills: The Productivity Linked Bonus Bill is to be audited as prescribed vide Comptroller and Auditor General's Secret letter No.898-RAII/425/79 dated 28.9.1981. Selection should be made so as to cover the bills relating to more than one Department of the Railway Administration. The scope of check should cover in particular the eligibility of individual employees for bonus and method of computation adopted for determining their wages per day. (Para 243 of Railway Audit Manual). 757. Audit of charges debitable to 345-A and 345-B - Indian Railway Miscellaneous Railway Expenditure: These charges relate to Indian Railways Institute of Signal Engineering and Telecommunications, Secunderabad, Railway Recruitment Board, Secunderabad, RCT, C-TARA, Surveys etc. These are to be test-checked to the extent prescribed for different categories of vouchers and accounts etc. (Para 294 of Railway Audit Manual).

*********

210

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CHAPTER - VIII BOOKS AND BUDGET INCLUDING APPROPRIATION AUDIT 801. General: Self-contained accounting units have been set up in the six Divisions of this Railway for the maintenance of accounts. Similarly, self-contained accounting units have been attached to the Workshop Offices located at Lallaguda, Guntupalli and Tirupati and Construction offices at Secunderabad, Vijayawada, Rajahmundry and Nanded. The accounting of the Headquarters offices and consolidation of the accounts of the entire Railway is done by the Books Section (Headquarters) of the Office of the Financial Adviser & Chief Accounts Officer. Consequently, the Books and Budget (Headquarters) Audit Section is responsible for the audit of the General Books and Accounts of the South Central Railway including the audit of Capital and Revenue Accounts, Finance Accounts, Debt Head Report, Appropriation Accounts and other connected statements. The work done in the Divisions, Construction Sections and Workshop Sections of the Accounts Office is audited by the corresponding audit units of this office. The duties of the Accounts Officer in regard to the compilation of Railway Accounts are contained in Chapters II to VII of Accounts Code Vol.I. 802. Computerised Accounting System: With effect from 1.4.1979, revised accounting classification, (both for Revenue and Capital transactions) and restructuring of the demands were introduced in the Indian Railways, with a view to computerising the financial accounting system of the Railways. The computer based financial accounting system caters for the timely preparation of the General Books, Account Current, Subsidiary Registers as well as important management information reports. On this railway, the following phases of accounting work have been computerised. 1. 2. 3. 4. 5. 6. 7.

Daily Cash Book and Monthly Revenue Journal Book. Revenue Journal and Ledger. Capital Journal and Ledger. Allocation Registers and statement of works expenditure. Tabulation of service/suspense transactions. Control over expenditure. Account Current.

All transactions in the computer based documents are coded. The common (or fixed) data to be coded in each voucher (CO7/JV/MCR/TCs) in the first 20 columns are: 1. 2. 3. 4. 5. 6.

Card code (CC) Col.1 Accounting Unit (AU) 2-3 Voucher Reference(Co7) 4-9 Books serial number 10-13 Date of accountal 14-19 Debit/Credit Indication 20

Variable data to be coded are:

212

Ch.VIII - Page 2 of 54

1. 2. 3. 4. 5. 6. 7. 8. 9.

Consignee code Work/PO/SO number Executive Voucher No(AM) Spending Department Code Guage Code Voted/Charged Code Demands Payable Code Allocation & Primary Unit Code Amount

25-29 30-35 36-42 43-44 48 49 50 51-58 59-70

The method of coding the fixed data in respect of certain columns in the voucher is described below: COLUMN: 1) Voucher type/Card Code (CC):- For each type of voucher/document i.e. CO7/RJV/CJV, Summary of Misc. Cash Receipts and Traffic Cash summaries, a single digit card code is allotted as follows: “1” for CO7, “2” for MCR, “3” for RJV, “4” for Capital JV and “5” for Traffic Cash summaries. 2) Accounting Unit (AU):- Each Accounting unit on the Railway has been allotted a 2 digit code vide Annexure – 1. 3. Voucher reference (CO7/RJV/CJV/MCR/TCs):- In this column 6 digits are entered, which comprise of a 2-digit section code (in the high order) and a 4-digit serial number of the voucher allotted by the section preparing the voucher (in the low order). A list of sections preparing the CO7s and JVs and the 2-digit codes allotted to each is given in Annexure-II. The 4-digit serial number for each type of voucher ranges from 0001 to 9998. For example, if a section in an accounting unit prepares 153 CO7s and 98 RJVs in the commencing month, those CO7s and RJVs are serially numbered from 0001 to 0153 and 0001 to 0098 respectively. If another section in the same accounting unit prepares concurrently 91 CO7s and 55 RJVs in the commencing month, those CO7s and RJVs are serially numbered from 0001 to 0091 and 0001 to 0055 respectively. The 6-digit voucher number is entered in the boxes marked “Voucher” by the respective sections preparing the voucher. 4. Books section serial number (BKS SRL):- This represents monthly serial number allotted by the Books Section of an accounting unit in respect of all the RJVs and CO7s received from the various sections of the same accounting unit. 5. Date of accountal (Books date):- This is the date of accountal in the Books Section and the boxes on the individual vouchers are filled in by the Books Section with a 6-digit date code. For example, in the case of CO7s, MCRs and TCs, if the date of accountal of the voucher is 3rd March, 1986, the box is filled in with “030386” (if the accounting month is March 1986). In the case of both types of JVs (Capital and Revenue), the date of preparation has no particular significance and, therefore, as a rule, the date will be that of the last date of the month. For example, a JV of May 1986 will bear the date of “310586” (i.e. the last date of the month). 6. Debit/Credit Indication (Dr/Cr):- This is a single digit code pre-printed on the voucher. 213

Ch.VIII - Page 3 of 54

“1” for Dr. and “2” for Cr. 7. Consignee Code:- This is a 5-digit code used on the stores indents etc. to identify the official drawing the stores. 8. Spending department code (SPD):- This is a 2-digit code indicating the department incurring the expenditure. The code list of the spending departments is given in Annexure – III. 9. Allocation (and PU) Code:- This indicates the allocation of the transactions and is a 8 character code comprising a 2-digit “demand code” followed by 4 character “detailed head code” and suffixed by a 2-digit “primary unit code”. Since the detailed head for revenue transactions as provided in the books of classification is of 3-digits, the 3-digit account code is entered in continuation of 2-digit code for abstracts/demands leaving the unit position blank. (b) Service and Suspense Heads:- This is a 8-digit code. Full list of the service heads is given in Annexure – IV. The instructions for conducting the audit of General Books and Accounts are contained in Chapter XIX of Railway Audit Manual.

214

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ANNEXURE – I CODE LIST OF ACCOUNTING UNITS Account Unit Code

Description FA & CAO/SC

…..

01

Sr.DFM/SC

…..

05

Sr.DFM/HYB

…..

06

Sr.DFM/BZA

…..

07

Sr.DFM/GTL

…..

09

Sr.DFM/GNT

…..

10

Sr.DFM/NED

…..

11

WAO/LGD

…..

15

WAO/RYP

…..

17

SAO/CRS/TPTY

…..

18

SAO/CN/SC

…..

21

SAO/CN/BZA

…..

22

SAO/CN/RJY

…..

24

SAO/CN/TPTY

…..

26

Dy.CAO/CN/NED

…..

27

…………..

215

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ANNEXURE – II CODE LIST OF SECTIONS PREPARING CO7s AND JVs

CODE

SECTIONS

(XX) Books

…

01

Establishment (Gaz.)

…

02

Establishment (Non-Gaz.)

....

03

Expenditure Accounts

…

04

Expenditure Catering A/cs

…

05

Stores Bills

…

06

Fuel Bills

…

07

Provident Fund

…

08

Pension

…

09

Settlement

…

10

Coaching

…

11

Goods

…

12

Claims

…

13

Traffic Books

…

14

Traffic Sundries

…

15

Outstandings

…

16

Suspense

…

17

Labour & Stores

…

18

S&T A/cs. MFT

…

19

Stores (Books)

…

20

Stores (A/c Current)

…

21

Stores (Purchases)

…

22

Commercial (Claims)

…

23

Traffic Accounts

…………..

216

Ch.VIII - Page 6 of 54

ANNEXURE – III CODE LIST OF SPENDING DEPARTMENTS

CODE

DESCRIPTION General Management

…

01

Accounts

…

02

Personnel

....

03

Stores

…

04

Engineering (Open Line)

…

05

Mechanical

…

06

Electrical

…

07

S&T

…

08

Operating

…

09

Comml. & Catering

…

10

Claims

…

11

Security

…

12

Medical

…

13

Construction Accounts

…

14

Construction Engineering

…

15

Construction S&T

…

16

Construction Electrical

…

17

Construction Mechanical

…

18

Railway Electrification

…

20

ZTC/MLY

…

21

DSTE/CN/MW/SC

…

22

IRISET

…

30

Railway Recruitment Board

…

31

Audit

…

32

DCOS/LGD

…

41

DCOS/MFT

…

42

DCOS/GSD/UBL

…

43

DCOS/MSD/UBL

…

44

DCOS/S&F/SC

…

45

ACOS/RYP

…

46 217

Ch.VIII - Page 7 of 54

ACOS/GY

…

47

ACOS/CTJ

…

48

ACOS/Stores/BZA

…

49

ACOS/DSL/KZJ

…

50

Press Supdt./Printing Press/SC …

51

Electrical/TRS

…

52

Electrical/TPD

…

53

Mech./DSL/HYB

…

54

Mech./DSL/SC

…

55

DSTE/MW/SC

…

56

DME/DSL/KZJ

…

57

ACOS/ELS/BZA

…

58

CHS/LGD

…

59

RCT/SC

…

60

CCM/PRS

…

65

ACOS/DST/BZA

…

67

ELS/LGD

…

68

CEE/CN/DHE

…

69

Catering

…

70

M.W (Special Works)

…

71

C&W/BZA

…

72

Diesel Stores Depot/UBL

…

73

Diesel Loco Shed/UBL

…

74

ELS/KZJ

…

75

STTC/MLY

…

76

C-TARA

…

77

218

Ch.VIII - Page 8 of 54

ANNEXURE – IV CODING LIST OF SUSPENSE AND SERVICE HEADS PART – I – CONSOLIDATED FUND SUSPENSE Sl. No.

01 02 03 04

NAME OF THE HEAD 1002-Indian Railways Commercial Lines Revenue Receipts Traffic Accounts Foreign Railways Traffic Account (Cash in Transit) Credit only Demands Recoverable

00100201 00100202 00100203 00100204

05 06 07 08 09 10 11 12 13

TRAFFIC SUSPENSE Stores Fuel Expenditure Coaching Goods Traffic Books Compensation Claims Sundries WOC

00100206 00100207 00100208 00100211 00100212 00100213 00100214 00100215 00100225

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

1001-Indian Railways Commercial Lines – Miscellaneous Receipts Interest on PF Bonus not due to members Leave Salary Contribution Forfeited Bonus Interest on erroneous PF Recovery Amount of Bonus forfeited from Bonus optees Gain on conversion due to decimal coinage Amount recovered on account of liquidated damages Rounding off paise on account of bulk orders Petty unclaimed balances Penalty recovered from Contractors Interest on capital during Construction Dividend from Consumer Co-Operative Societies Miscellaneous Government share of surplus profits from subsidized companies Sale of Land – Subsidised Companies Subsidies from General Revenues towards Dividend reliefs and other concessions RRB (Cost of forms & exam fees) RCT (Miscellaneous expenditure) Surcharge collected on Passenger Tickets towards SRSF National Aids Control Compensation (Family Welfare Programme) 6425 – LOANS AND ADVANCES

CODE

00100101 00100102 00100103 00100104 00100105 00100106 00100107 00100108 00100109 00100110 00100111 00100112 00100113 00100114 00100115 00100116 00100117 00100118 00100120 00221002 00221101

219

Ch.VIII - Page 9 of 54

35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

Loans to Railway Men’s Consumer Co-Operative Societies 7610 – Loans to Government Servants House Building Advance (Rlys) House Building Advance (Audit) Motor Car Advance (Rlys) Motor Car Advance (Audit) Scooter / Motor Cycle Advance (Rlys) Scooter / Motor Cycle Advance (Audit) Advance for purchase of other conveyances (Rlys) Advance for purchase pf other conveyances (Audit) Personal Computer (Rlys) Personal Computer (Audit) Drought Advance (Rlys) Drought Advance (Audit) Flood Advance (Rlys) Flood Advance (Audit) Earthquake Advance (Rlys) Earthquake Advance (Audit) Fan Advance (Rlys) Fan Advance (Audit) Foodgrain Advance (Rlys) Foodgrain Advance (Audit) Cyclone Advance (Rlys) Cyclone Advance (Audit) Other Misc. Advances (Rlys) Other Misc. Advances (Audit) 7615 – Miscellaneous Loans & Advances: Miscellaneous Loans

00642501 00761001 00761051 00761002 00761052 00761003 00761053 00761004 00761054 00761005 00761055 00761006 00761056 00761007 00761057 00761008 00761058 00761009 00761059 00761010 00761051 00761011 00761061 00761012 00761062 00761501

Part – III – PUBLIC ACCOUNT – SMALL SAVINGS

61 62 63 64 65 66 67 68 69 70 71 72

73 74 75 76

8005 – STATE PROVIDENT FUNDS General Provident Fund General Provident Fund (DA) Non-Contributory SRPF Non-Contributory (DA) Transferred ex. N.S.P.F. Non-Contributory N.S.P.F. GFP – ADA Arrears CSRPF – ADA Arrears ACSRP – ADA Arrears GPF-HRA & CCA Arrears CSRPF – HRA & CCA Arrears NCSRPF-HRA & CCA Arrears RESERVE FUNDS 8115 – Depreciation / Renewal Reserve Funds (Rlys.) Transfers to and from Revenue Account (DRF) Transfers from surplus (CR. To Fund) (DRF) Interest on fund Balances (Cr. To Fund) (DRF) 8116 – OLWR Transfers to and from Revenue Accounts (OLWR)

00800501 00800502 00800503 00800504 00800505 00800506 00800508 00800511 00800512 00800513 00800514 00800515

00811501 00811502 00811503 00811601 220

Ch.VIII - Page 10 of 54

77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116

Transfers from Surplus (OLWR) Interest on Fund Balance (OLWR) 8117 – DF Transfers to & from Revenue Accounts (DF) Transfers from Surplus (DF) Interest on Fund Balance (DF) 8118 – Capital Fund Transfers to & from Revenue Accounts (CF) Transfers from Surplus (CF) Interest on Fund Balance (CF) 8119 – SAFETY FUND Transfers to & from Revenue Accounts (SF) Transfers from Surplus (SF) Interest on Fund Balance (SF) 8121 – Railway Pension Fund Transfers to and from Revenue (Pension Fund) Transfers from CSRPF (Cr. To Fund) (Pension Fund) Interest on Fund Balances (Cr. To Fund) (Pension Fund) I.R.I.S.E.T. (Pension Fund) Audit (Pension Fund) 8132 – SBF Railways – Staff Benefits (Rlys) Investment Account (Rlys) Investment Account (IRISET) Transfer from unpaid wages to SBF 8230 – SRSF Transfers to & from Revenue Accounts (SRSF) Transfers from Surplus (SRSF) Interest on Fund Balance (SRSF) Employee Contribution – TIER – 1 Government Contribution – TIER – 1 Interest on TIER – 1 1. DEPOSITS AND ADVANCES Deposits of Govt. Companies / IRFC 8445 – Indian Railways Deposits : Not Bearing Interest Deposit Books (Misc.) Deposit Books (Establishment) Deposit Books (Expenditure) Deposit Books(Catering) Deposit Books(Stores) Deposit Books(Coal) Deposit Books(PF) Deposit Pension Deposit Coaching Deposit Goods Deposit Claims Deposit T. Book Deposit made for Temporary Electric connections etc. provided by Railways (Deposits) Deposit made by outsiders for the treatment etc. provided in the Railway Hospitals (Deposit Medical)

00811602 00811603 00811701 00811702 00811703 00811801 00811802 00811803 00811901 00811902 00811903 00812101 00812102 00812103 00812104 00812105 00813201 00813202 00813203 00823001 00823002 00823003 00834201 00834202 00834203 00834201 00844501 00844502 00844504 00844505 00844506 00844507 00844508 00844509 00844511 00844512 00844513 00844514 00844515 00844516

221

Ch.VIII - Page 11 of 54

117 118

119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146

147 148 149 150 151 152 153 154 155 156 157

Security Deposits / Retention Money received from Contractors (Deposit SD & BM) Deposit received from Vendors Tea stall, Book Stalls, Cycle Stand Contractors, Deposit for lease of Land etc. (Deposit Sundries) Court Attachment of Railway Employees Pay and Allowances – Deposit Court Deposit Books (Unpaid Wages) Deposit (Earnest Money) Deposit S.B.F. Deposit Private Companies Deposit A.D.A. Deposit Books of Branch Line Companies Deposit Stores (EMDESD) Deposit Stores (Sales Tax) Deposit Stores (Misc.) Deposit Survey Deposit Inspection Fee Miscellaneous P.F. Deposits Unclaimed P.F. Deposits Trust Interest Accounts Other Deposits Deposit Works Deposits IRFC Prime Minister Relief Fund SRSF Employees Contribution Government Contribution Interest on TIER SEIGNIORAGE CHARGES Advances of Pay on Transfer Catering Advance Messing Advance Other Departmental Advances L – SUSPENSE & MISCELLANEOUS B – SUSPENSE 8660 – Suspense Accounts (Railway) Transactions on behalf of RBI/Nagpur – Cost of Railway freight for remittance of Treasure Transactions on behalf of RBI/Nagpur (Additional DA Deposit (Old)) Transactions on behalf of RBI/Nagpur (Additional DA Deposit (New)) Adjustment with Pakistan Adjustment with Bangladesh Railway Insurance Scheme Court Deposits PSB Clearance from Suspense (Cheq. & Bills) PSB RIB Clearance PSB Cheques & Bills Group Insurance A

00844517 00844518

00844519 00844521 00844522 00844523 00844524 00844525 00844526 00844531 00844532 00844533 00844534 00844535 00844550 00844551 00844552 00844553 00844554 00844555 00844556 00844557 00844558 00844559 00844560 00844561 00855201 00855202 00855203 00855204

00866001 00866002 00866003 00866004 00866005 00223501 00866007 00866008 00866009 00866010 00801101 222

Ch.VIII - Page 12 of 54

158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207

Group Insurance B Group Insurance C Group Insurance D Group A Savings Group B Savings Group C Savings Group D Savings UT.G.I./A UT.G.I./B UT.G.I./C UT.G.I./D Group A Group B Group C Group D Additional DA Deposit (Old) Additional DA Deposit (New) Additional Wages Deposit (Old) Additional Wages Deposit (New) PAO Suspense PAO/NDLS Int, on ADA (Old) PAO/NDLS Int, on ADA (New) KRCL PSB-RIB Loss or Gain due to rounding off Cheques and Bills (Cheques encashed) Cheques and Bills Reasuries RIB Clearance Remittance into Banks Reserve Bank Suspense AG/NDLS AG/Andhra Pradesh AG/Assam AG/Bihar AG/Maharashtra / Mumbai AG/Central Revenue AG/Goa AG/Gujarat AG/Haryana AG/Karnataka AG/Madhya Pradesh AG/Maharashtra / Nagpur AG/Orissa AG/Punjab AG/Rajasthan AG/Tamil Nadu AG/Uttar Pradesh AG/West Bengal AG/Kerala AG/Jammu & Kashmir

00801102 00801103 00801104 00801105 00801106 00801107 00801108 00801111 00801112 00801113 00801114 00801121 00801122 00801123 00801124 00866011 00866012 00866013 00866014 00866015 00866016 00866017 00866018 00866019 00866006 00867087 00867089 00867785 00867786 00867788 00866020 00866021 00866022 00866023 00866024 00866025 00866026 00866027 00866028 00866029 00866030 00866031 00866032 00866033 00866034 00866035 00866036 00866037 00866038 00866039 223

Ch.VIII - Page 13 of 54

208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258

AG/Nagaland Ag/Himachal Pradesh / Simla AG/Manipur / Imphal AG/Tripura / Agartala AG/Goods AG/Coaching Dy.A.A./P&T / Bangalore Dy.A.A./P&T / Bhopal Dy.A.A./P&T / Mumbai Dy.A.A./P&T / Calcutta Dy.A.A./P&T / Cuttack Dy.A.A./P&T / Delhi Dy.A.A./P&T / Hyderabad Dy.A.A./P&T / Jaipur Dy.A.A./P&T / Kapurthala Dy.A.A./P&T / Madras Dy.A.A./P&T / Nagpur Dy.A.A./P&T / Trivandrum D.A.G./P&T / Goods D.A.G./P&T / Patna D.A.G./P&T / Calcutta Director, P&T Accounts PAO Suspense Coaching PAO Suspense Goods PAO Suspense Others C.D.A. / Bangalore C.D.A.(N) / Mumbai C.D.A.(F) / Calcutta C.D.A.(AF) / Dehra Dun C.D.A.(DRS) / Madras C.D.A.(CS) / Meerut C.D.A. / Patna C.D.A.(O) / Poona C.D.A.(SC) / Poona C.D.A.(WC) / Meerut C.D.A.(ORS) / North Meerut C.D.A.(AF) / Kirkee AG Suspense Coaching Ag Suspense Goods AG Suspense Others P.A.O. / NDLS P.A.O. / Ministry of EA Public Sector Banks (Pension Reimbursement) P.A.O. / Pension P.A.O. / Loksabha P.A.O. / Rajyasabha P.A.O. / N.S.Dam P.A.O. / Pochanpad P.A.O. / Secunderabad P.A.O./Supplies / Bombay P.A.O. / Hyderabad

00866040 00866041 00866042 00866043 00866044 00866045 00866046 00866047 00866048 00866049 00866050 00866051 00866052 00866053 00866054 00866055 00866056 00866057 00866058 00866059 00866060 00866061 00866062 00866063 00866064 00866065 00866066 00866067 00866068 00866069 00866070 00866071 00866072 00866073 00866074 00866075 00866076 00866077 00866078 00866079 00866080 00866081 00866082 00866083 00866084 00866085 00866086 00866087 00866088 00866090 00866091 224

Ch.VIII - Page 14 of 54

259 260 261 262 263 264 265

266 267 268 269 270 271 272

273 274 275 276

277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301

P.A.O. / Visakhapatnam P.A.O. / Kaukantla P.A.O. / Goods P.A.O. / Coaching P.A.O./Supplies / NDLS P.A.O. / Madras P.A.O. / Calcutta C- Other Accounts 8675 – Deposits with Reserve Bank (Rlys) Transactions with Reserve Bank including State Banks Transactions with States Transactions with P&T Transactions with Defence & Naval Transactions with PAOs Additional D.A. Additional Wages 8679 – Accounting with Governments of Foreign Countries Pakistan (Rlys) Pakistan (Civil) Burma (Rlys) Bangladesh (Rlys) M - Remittances T-8782 – Cash Remittances and Adjustment between Officers rendering Accounts to same A.G. / Accounts Officers – Transfers within the same Railways T.Divisional FA & CAO (Central Books) T.Divisional Sr.DAO/SC T.Divisional Sr.DAO/HYB T.Divisional Sr.DAO/BZA T.Divisional Sr.DAO/UBL T.Divisional Sr.DAO/GTL T.Divisional WAO/LGD T.Divisional WAO/UBL T.Divisional WAO/RYP T.Divisional SAO/CRS/TPTY T.Divisional Const./SC T.Divisional Const./BZA T.Divisional Const./RJY T.DivisionalConst./TPTY T.Divisional FA&CAO/RE/BZA T.Divisional RE/PU Transfer Railways Revenue (in JVs only) Transfer Railways Capital (in JVs only) T.Divisional FA&CAO – House Rent T.Divisional FA&CAO – Lawn Charges T.Divisional FA&CAO – Diet Charges T.Divisional FA&CAO (Stores) T.Divisional Sr.DAO/SC – Elec. Energy T.Divisional Sr.DAO/HYB – Elec. Energy T.Divisional Traffic Accounts

00866092 00866093 00866094 00866095 00866096 00866097 00866098

00867501 00867502 00867503 00867504 00867505 00867506 00867507

00867901 00867902 00867903 00867904

00878201 00878205 00878206 00878207 00878208 00878209 00878215 00878216 00878217 00878218 00878221 00878222 00878224 00878226 Non-extant Non-extant 00878243 00878244 00878251 00878252 00878253 00878254 00878255 00878256 00878257 225

Ch.VIII - Page 15 of 54

302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331

332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347

(b) Inter – Governmental Adjusting Accounts: 8788 – Adjusting Accounts with P&T Dy.A.A./P&T / Bangalore Dy.A.A./P&T / Bhopal Dy.A.A./P&T / Mumbai Dy.A.A./P&T / Calcutta Dy.A.A./P&T / Cuttack Dy.A.A./P&T / Delhi Dy.A.A./P&T / Hyderabad Dy.A.A./P&T / Jaipur Dy.A.A./P&T / Kapurthala Dy.A.A./P&T / Madras Dy.A.A./P&T / Nagpur Dy.A.A./P&T / Trivandrum D.A.G./P&T / Goods D.A.G. / P&T / Patna D.A.G./P&T / Calcutta Director, P&T Accounts – Lucknow 8789 – Adjusting Accounts with Defence C.D.A. / Bangalore C.D.A.(N) / Mumbai C.D.A.(F) / Calcutta C.D.A.(AF) / Dehra Dun C.D.A.(DRS) / Madras C.D.A.(CC) / Meerut C.D.A.(CC) / Patna C.D.A.(O) / Poona C.D.A.(SC) / Poona C.D.A.(WC) / Meerut C.D.A.(ORS) / North Meerut C.D.A.(AF) / Kirkee C.D.A.(A/c with Defence CDA) / Guwahati C.D.A. / SC (a) Exchange Accounts 8797 – Accounts between Railways Central Railway Eastern Railway Northern Railway North Eastern Railway North Eastern Frontier Railway Southern Railway South Eastern Railway Western Railway South Central Railway CLW DLW ICF Wheel and Axle Plant M.T.P. Bombay M.T.P. Calcutta M.T.P. Delhi

00878846 00878847 00878848 00878849 00878850 00878850 00878850 00878850 00878850 00878850 00878850 00878850 00878850 00878850 00878850 00878 00866065 00878966 00878967 00878968 00878969 00878970 00878971 00878972 00878973 00878974 00878975 00878976 00878977 00878978 00878 00879701 00879702 00879703 00879704 00879705 00879706 00879707 00879708 00879709 00879711 00879712 00879713 00879714 00879721 00879722 00879723 226

Ch.VIII - Page 16 of 54

348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369

M.T.P. Madras Integral Coach Factory, Kapurthala COF Operating Information Systems – Railway East Central Railway East Coast Railway North Central Railway North Western Railway South East Central Railway South Western Railway West Central Railway Railway Board FA&CAO/RE / Allahabad RDSO / Lucknow Dy.CAO/COMN / NDLS COFMOW / NDLS DCM / Patiala Interest on House Building Advance Interest on Motor Car Advance Interest on Scooter / Motor Cycle Advance Interest on Cycle Advance Interest on Fan Advance Interest on Foodgrain Advance & Flood Advance

00879724 00879725 00879726 00879730 00879731 00879732 00879733 00879734 00879735 00879736 00879751 00879752 00879753 00879754 00879766 00879767 00004901 00004902 00004903 00004904 00004905

370 371 372 373 374 375 376 377

Interest on PC Advance Dividend Payable to General Revenues Railway Board Income Tax Expenditure Railway Board Establishment Railway Surcharge on IT Employees Railway Surcharge on Contractors Education Cess on IT (Expenditure) Education Cess on IT (Establishment) Employees 8671 – Departmental Balances (Rlys) Cheques and Credit Notes-cum-Cheques deposited with the banks and awaiting clearance Cheques and Credit Notes-cum-Cheques on hand Cash on hand with Cashier Miscellaneous Items Cash in Transit (only debits) Credit or Recovery Payment to Worked Lines Subsidy and rebate Advance cheques 8672 – Permanent Cash Imprest Imprest

00004908 00005002 00002101 00002102 00002103 00002104 00002105 00002106

378 379 380 381 382 383 384 385 386 387

Not interest bearing Advances

00000001 00000002 00000004 00000007 00100203 00000559 00000701 00000702 00867102 00867202

227

Ch.VIII - Page 17 of 54

ANNEXURE - IV CODING LIST OF SUSPENSE AND SERVICE HEADS Code

Part I - Consolidated Fund

xx

xxxxxx

1002 - Indian Railways Commercial lines Revenue Receipts SUSPENSE: Traffic Account Foreign Railways Traffic A/c (Cash in Transit) Credit only Demands Recoverable

… … … …

00014601 00014602 00014603 00014604

… … … … … … … … …

00014606 00014607 00014608 00014611 00014612 00014613 00014614 00014615 00014625

Traffic Suspense Stores Fuel Expenditure Coaching Goods Traffic Books Compensation Claims Sundries WOC

1001 - Indian Railways Commercial Lines - Miscellaneous Receipts: Interest on P.F. Bonus not due to members: … Leave Salary contribution … Forfeited Bonus … Interest on erroneous P.F. Recovery … Amount of Bonus forfeited from pension Optees … Gain on conversion due to decimal coinage … Amount recovered on account of liquidated damages Rounding off paise on account of bulk orders … Petty unclaimed balances … Penalty recovered from contractors … Interest on capital during construction … Dividend from Consumer Cooperative Societies … Miscellaneous … Govt. share of surplus profits from subsidised companies… Sale of Land - Subsidised Companies … Subsidies from General Revenues towards Dividend Reliefs and other concessions … RRB(Cost of Forms & Exam. Fees) … RCT(Misc. expenditure) … Surcharge collected on Passenger tickets towards ACF Compensation(Family Welfare Programme) …

00014501 00014502 00014503 00014504 00014505 00014506 00014507 00014508 00014509 00014510 00014511 00014512 00014513 00014514 00014515 00014516 00014517 00014518 00014521 00021101

6425 - LOANS AND ADVANCES: 228

Ch.VIII - Page 18 of 54

Loans to Railway Men's Consumer Co-operative Societies

00069801

7610 - Loans to Government servants: House Building Advance (Rlys.) House Building Advance(Audit) Motor Car Advance(Rlys.) Motor Car Advance(Audit) Scooter/Motor Cycle Advances(Rlys.) Scooter/Motor Cycle Advances(Audit) Advance for purchase of other conveyances(Rlys.) Advance for purchase of other conveyances(Audit) Personal Computer(Rlys.) Personal Computer(Audit) Drought Advance(Rlys.) Drought Advance(Audit) Flood Advance(Rlys.) Flood Advance(Audit) Earthquake Advance(Rlys.) Earthquake Advance(Audit) Fan Advance(Rlys.) Fan Advance(Audit) Foodgrain Advance(Rlys.) Foodgrain Advance(Audit) Cyclone Advance(Rlys.) Cyclone Advance(Audit) Other Misc. Advances(Rlys.) Other Misc. Advances(Audit)

… … … … … … … … … … … … … … … … … … … … … … … …

00076601 00076651 00076602 00076652 00076603 00076653 00076604 00076654 00076655 00076656 00076606 00076656 00076607 00076657 00076608 00076658 00076609 00076659 00076610 00076660 00076611 00076661 00076612 00076662

…

00076701

7615 - Miscellaneous Loans & Advances: Miscellaneous Loans

Part - III - PUBLIC ACCOUNT - SMALL SAVINGS - PROVIDENT 8005 - STATE PROVIDENT FUNDS: General Provident Fund ------do----(DA) Contributory SRPF ------do----(DA) Non-contributory SRPF ------do----(DA) Transferred Rly. Personnel PF(Cont.) do------ (Non Cont.) Contributory ex. N.S.P.F. Non-contributory -doCPF - ADA Arrears CSRPF - ADA Arrears ACSRPF - ADA Arrears CPF - HRA & CCA Arrears

… … … … … … … … … … … … … …

00080501 00080502 00080503 00080504 00080505 00080506 00080507 00080508 00080511 00080512 00080513 00080514 00080515 00080516 229

Ch.VIII - Page 19 of 54

CSRPF - HRA & CCA Arrears ACSRPF - HRA & CCA Arrears

… …

00080517 00080518

… … …

00081501 00081502 00081503

RESERVE FUNDS: 8115 - Depreciation/Renewal Reserve Funds (Rlys.) Transfers to and from Revenue Account(DRF) Transfers from Surplus(Cr. To Fund) (DRF) Interest on Fund Balances(Cr. To Fund) (DRF) 8121 - Railway Pension Fund: Transfers to and from Revenue(Pension Fund) … Transfers from CSRPF(CR. To Fund) (Pension Fund)… Interest on Fund Balances(Cr. To Fund) (Pension Fund)…

00082101 00082102 00082103

I.R.I.S.E.T.(Pension Fund) Audit(Pension Fund)

… …

00082104 00082105

… …

00083201 00083202

…

00084201

8121 - SBF Railways - Staff Benefits(Rlys.) Investment Account (Rlys.) Investment Account(IRISET) 1. DEPOSITS AND ADVANCES: Deposits of Govt. companies/IRFC

8445 - Indian Railways Deposits: Not Bearing Interest Deposit Books(Misc.) Deposit Books (Establishment) Deposit Books (Expenditure) Deposit Books (Catering) Deposit Books (Stores) Deposit Books (Coal) Deposit Books (PF) Deposit Pension Deposit Coaching Deposit Goods Deposit Claims Deposit T.Book

… … … … … … … … … … … …

00084501 00084502 00084504 00084505 00084506 00084507 00084508 00084509 00084511 00084512 00084513 00084514

Deposits made for Temporary Electric connections etc. provided by Railways(Deposit) …

00084515

Deposits made by outsiders for the treatment etc. provided in the Rly. Hospitals(Deposit Medical)

…

00084516

Security Deposit/Retention money received from contractors (Deposit SD & BM)

…

00084517

230

Ch.VIII - Page 20 of 54

Deposits received from Vendors Tea Stall, Book Stalls, Cycle Stand contractors, deposit for lease of land etc.(Deposit Sundries)

…

00084518

Court Attachments of Railway Employees Pay and Allowances(Deposit Court)

…

00084519

Deposit Books (Unpaid wages) Deposit (Earnest Money) Deposit S.B.F. Deposit Private Companies Deposit A.D.A.) Deposit Books of Branch Line Companies Miscellaneous P.F. Deposits Unclaimed P.F. Deposits Trust Interest Account Other Deposits Deposits Works Deposits IRSC

… … … … … … … … … … … …

00084521 00084522 00084523 00084524 00084525 00084526 00084550 00084551 00084552 00084553 00084554 00084555

… … … …

00085201 00085202 00085203 00085204

Transactions on behalf of RBI/Nagpur Cost of Railway freight for remittance of treasure …

00085801

Transactions on behalf of RBI/Nagpur(Additional DA Deposit(Old))

…

00085802

Transactions on behalf of RBI/Nagpur(Additional DA Deposit(New))

…

00085803

Railway Insurance Scheme Court Deposits Group Insurance A Group Insurance B Group Insurance C Group Insurance D

… … … … … …

00085804 00085805 00085806 00085807 00085808 00085809

C - ADVANCES: 852 - Railway Advances: Departmental Advances: Advances of Pay on transfer Catering Advance Messing Advance Other Departmental Advances L - SUSPENSE & MISCELLANEOUS: B - SUSPENSE: 8660 - Suspense Accounts (Railway):

231

Ch.VIII - Page 21 of 54

Additional DA Deposit (old) Additional DA Deposit (New) Addl. Wages Deposit (Old) Addl. Wages Deposit (New) PAO Suspense PAO NDLS Int. on ADA(old) PAO NDLS Int. on ADA(New) Loss or gain due to rounding off Cheques and Bills Remittance into Banks

… … … … … … … … … …

00085811 00085812 00085813 00085814 00085815 00085816 00085817 00085818 00085889 00085888

AC/NDLS AC/Andhra Pradesh AC/Assam AC/Bihar AC/Maharashtra/Bombay AC/Central Revenues AC/Goa AC/Gujarat AC/Haryana AC/Karnataka AC/Madhya Pradesh AC/Maharashtra/Nagpur AC/Orissa AC/Punjab AC/Rajasthan AC/Tamil Nadu AC/Uttar Pradesh AC/West Bengal AC/Kerala AC/Jammu & Kashmir AC/Nagaland AC/Himachal Pradesh/Simla AC/Manipur/Imphal AC/Tripura/Agartala AC/Goods AC/Coaching

… … … … … … … … … … … … … … … … … … … … … … … … … …

00085820 00085821 00085822 00085823 00085824 00085825 00085826 00085827 00085828 00085829 00085830 00085831 00085832 00085833 00085834 00085835 00085836 00085837 00085838 00085839 00085840 00085841 00085842 00085843 00085844 00085845

Dy.A.A./P&T/Bangalore Dy.A.A./P&T/Bhopal Dy.A.A./P&T/ Bombay Dy.A.A./P&T/ Calcutta Dy.A.A./P&T/ Cuttack Dy.A.A./P&T/ Delhi Dy.A.A./P&T/ Hyderabad Dy.A.A./P&T/ Jaipur Dy.A.A./P&T/ Kapurthala Dy.A.A./P&T/ Madras Dy.A.A./P&T/ Nagpur Dy.A.A./P&T/ Trivandrum

… … … … … … … … … … … …

00085846 00085847 00085848 00085849 00085850 00085851 00085852 00085853 00085854 00085855 00085856 00085857

Reserve Bank Suspense:

232

Ch.VIII - Page 22 of 54

D.A.G./P&T/Goods D.A.G./P&T/Patna D.A.G./P&T/Calcutta

… … …

00085858 00085859 00085860

Director Accounts, P&T Lucknow

…

00085861

C.D.A./Bangalore C.D.A.(N)/Bombay C.D.A.(F)/Calcutta C.D.A.(AF)/Dehra Dun C.D.A.(CRS)/Madras C.D.A.(CS)/Meerut C.D.A./Patna C.D.A./(O)/Poona C.D.A.(SC)/Poona C.D.A.(WC)Meerut C.D.A./ORS/North/Meerut C.D.A./AF/Kirkee P.A.O./NDLS P.A.O./Ministry of EA Public Sector Banks(Pension Reimbursement P.A.O./Pension P.A.O./Loksabha P.A.O./Rajyasabha P.A.O./N.S.Dam P.A.O./Pochampad P.A.O./Supplies/Bombay P.A.O./Hyderabad P.A.O./Visakhapatnam P.A.O./Kaukuntla P.A.O./Goods P.A.O./Coaching P.A.O./Supplies/NDLS P.A.O./Madras P.A.O./Calcutta

… … … … … … … … … … … … … … … … … … … … … … … … … … … … …

00085865 00085866 00085867 00085868 00085869 00085870 00085871 00085872 00085873 00085874 00085875 00085876 00085880 00085881 00085882 00085883 00085884 00085885 00085886 00085887 00085890 00085891 00085892 00085893 00085894 00085895 00085896 00085897 00085898

Transaction with Reserve Bank including State Banks Transactions with States … Transactions with P&T … Transactions with Defence & Naval … Transactions with PAOs … Addl. D.A. … Addl. Wages …

00087501 00087502 00087503 00087504 00087505 00087506 00087507

C - Other Accounts: 8675 - Deposits with Reserve Bank(Rlys.):

8679 - Accounting with Governments of Foreign Countries:

233

Ch.VIII - Page 23 of 54

Pakistan(Rlys.) Pakistan(Civil) Burma(Rlys.) Bangladesh(Rlys.)

… … … …

00087901 00087902 00087903 00087904

M - Remittances: T - 8782 - Cash Remittances & Adjustments Between Officers rendering Accounts to same A.G./Accounts Offices - Transfer within the same Railways: T.Divisional FA&CAO(Central Books T.Divl.Sr.DAO/SC T.Divl.Sr.DAO/RYP T.Divl.Sr.DAO/BZA T.Divl.Sr.DAO/UBL T.Divl.Sr.DAO/GTL T.Divl.WAO/LGD T.Divl.WAO/UBL T.Divl.WAO/RYP T.Divl.SAO/CRS/TPTY T.Divl.Constn/SC T.Divl.Constn/BZA T.Divl.Constn/UBL T.Divl.Constn/RJY T.Divl.FA&CAO/RE/BZA T.Divl.RE/PU Transfer Railways Revenue(In JVs on W) Transfer Railways Capital(In JVs on W) T.Divl. FA&CAO House Rent T.Divl. FA&CAO Lawn Charges T.Divl. FA&CAO Diet Charges T.Divl. FA&CAO (Stores) T.Divl. Sr.DAO/SC Elec. Energy T.Divl. Sr.DAO/HYB Elec. Energy

… … … … … … … … … … … … … … … … … … … … … … … …

00088201 00088205 00088206 00088207 00088208 00088209 00088215 00088216 00088217 00088218 00088221 00088222 00088223 00088224 00088231 00088232 00088243 00088244 00088251 00088252 00088253 00088254 00088255 00088256

… … … … … … … … … … … … … …

00088746 00088747 00088748 00088749 00088750 00088751 00088752 00088753 00088754 00088755 00088756 00088757 00088758 00088759

(b) Inter-Governmental Adjusting Accounts: 8788 - Adjusting Accounts with P&T: Dy.AA/P&T/Bangalore Dy.AA/P&T/Bhopal Dy.AA/P&T/Bombay Dy.AA/P&T/Calcutta Dy.AA/P&T/Cuttack Dy.AA/P&T/Delhi Dy.AA/P&T/Hyderabad Dy.AA/P&T/Jaipur Dy.AA/P&T/Kapurthala Dy.AA/P&T/Madras Dy.AA/P&T/Nagpur Dy.AA/P&T/Trivandrum Dy.AA/P&T/Goods DAG/P&T/Patna

234

Ch.VIII - Page 24 of 54

DAG/P&T/Calcutta Director(Accounts)(P&T) Lucknow

… …

00088760 00088761

… … … … … … … … … … … …

00088965 00088966 00088967 00088968 00088969 00088970 00088971 00088972 00088973 00088974 00088975 00088976

… … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … …

00089020 00089021 00089022 00089023 00089024 00089025 00089026 00089027 00089028 00089029 00089030 00089031 00089032 00089033 00089034 00089035 00089036 00089037 00089038 00089039 00089040 00089041 00089042 00089043 00089044 00089045 00089080 00089081 00089082 00089083 00089084 00089085

8789 - Adjusting Accounts with Defence: CDA/Bangalore CDA(N)/Bombay CDA(F)/Calcutta CDA(AF)/Dehra Dun CDA(ORS)/Madras CDA(CC)/Meerut CDA(CC)/Patna CDA(C)/Poona CDA(SC)/Poona CDA(WC)/Meerut CDA(CRS)North/Meerut CDA(AF)/Kirkes 8790 - Adjusting Accounts with States: AG/NDLS AG/Andhra Pradesh AG/Assam AG/Bihar AG/Maharashtra/Bombay AG/Central Revenues AG/Goa AG/Gujarat AG/Haryana AG/Karnataka AG/Madhya Pradesh AG/Maharashtra/Nagpur AG/Orissa AG/Punjab AG/Rajasthan AG/Tamil Nadu AG/Uttar Pradesh AG/West Bengal AG/Kerala AG/Jammu & Kashmir AG/Nagaland AG/Himachal Pradesh/Simla AG/Manipur(Imphal) AG/Tripura(Agartala) AG/Goods AG/Coaching PAO/NDLS PAO/Ministry of EA Public Sector Banks(Pension reimbursement) PAO/Pension PAO/Loksabha PAO/Rajyasabha

235

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PAO/Supplies/N.S.Project PAO/Pochampad PAO/Bombay PAO/Hyderabad PAO/Visakhapatnam PAO/Kaukuntla PAO/Goods PAO/Coaching PAO/NDLS PAO/Madras PAO/Calcutta

… … … … … … … … … … …

00089086 00089087 00089090 00089091 00089092 00089093 00089094 00089095 00089096 00089097 00089098

… … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … …

00089701 00089702 00089703 00089704 00089705 00089706 00089707 00089708 00089709 00089711 00089712 00089713 00089714 00089721 00089722 00089723 00089724 00089751 00089752 00089753 00089754 00089755 00089756 00089757 00089758 00089759 00089760 00089761 00089762 00089763 00089764 00089765

(c) Exchange Accounts: 8797 - Accounts between Railways: Central Railway Eastern Railway Northern Railway North Eastern Railway North Eastern Frontier Railway Southern Railway South Eastern Railway Western Railway South Central Railway C.L.W. C.L.W. I.C.F. Wheel & Axle Plant M.T.P. Bombay M.T.P. Calcutta M.T.P. Delhi M.T.P. Madras Railway Board FA&CAO/RE/Allahabad RDSO/Lucknow Dy.CAO/COMN/New Delhi Interest on JBA Interest on FCA(Motor Car Advance) Interest on Scooter Advance Interest on Cycle Advance Interest on Fan Advance Interest on Grain Advance Interest on Flood Advance Rly. Board Income Tax Expenditure Rly. Board Establishment Rly. Surcharge on IT employees Rly. Surcharge on Contractors 8671 - Departmental Balances(Rly.):

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Cheques and Credit Notes-cum-cheques deposited with the banks and awaiting clearance …

00000001

Cheques & Credit Notes-cum-cheques on hand

…

00000002

Cash on hand with Chief Cashier

…

00000004

Miscellaneous Items

…

00000007

Cash in transit(only debits)

…

00014603

Advance cheques

…

00087102

…

00087202

8672 - Permanent Cash Imprest: Imprest

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803. Sanctions: All sanctions having financial effect relating to the Railway, accorded by the President or Railway Board and those accorded by the General Manager and subordinate officers should be audited by this section with reference to the Schedule of Powers and the canons of financial propriety. The general principles of audit of sanctions and the method of audit as prescribed in the Chapter on "Expenditure Audit" apply to sanctions relating to Books and Budget also. The sanctions dealt with in the Books and Budget Section, generally relate to distribution of funds as approved and advised by the Railway Board, to the various units and reappropriations made. While auditing sanctions relating to distribution of funds to various departments, it should inter alia be seen that the total amount distributed does not exceed the amount sanctioned by the Railway Board for the Railway as a whole. In auditing sanctions relating to reappropriations, the instructions contained in Paras 375 to 381 FI as well as those communicated through the Railway Board's budget orders on reappropriations should be borne in mind. 804. Check of Journal Vouchers including scrutiny of Adjustment Mema: The selection of Journal Vouchers for audit should initially be obtained as per the percentages fixed. In respect of the selected Journal Vouchers, the sub-vouchers should be listed out according to the monetary ranges prescribed and selection of sub-vouchers obtained to the same extent as per Journal Vouchers (Circular No.Au/COR/Secret/VI dt.9.2.76). i.

If the number of vouchers is large a maximum of 10 numbers bearing more money value may be selected and listed alongside the main Journal Voucher.

ii.

Journal Vouchers for the month of March will be checked 100%.

Detailed instructions laid down in Para 387 of Railway Audit Manual may be seen. Besides, whenever amounts are adjusted between Capital and Revenue by operating the heads "Transfers Revenue" and "Transfers Capital", the Capital Journal Vouchers should be linked with the corresponding Revenue Journal Vouchers and vice versa. In auditing the Journal Vouchers relating to Transfer Transactions, Remittance Transactions normally dealt with by the Books Section, it should also be seen that: (i)

The debits raised against Government Departments have been accepted by the Departments concerned; and

(ii)

In the case of Transfer Transactions with other Railways, necessary transfer certificates are accompanying the Journal Vouchers and that the supporting vouchers have been duly accepted and allocated to the correct Heads of Account.

805. Tracing the postings from Journal Vouchers into Journals: The particulars of Journal Vouchers selected for audit in a month should be advised by Headquarters Auditing Sections including Traffic Audit Section to the Books and Budget Headquarters Audit Section. The Capital and Revenue Journal Vouchers prepared should be got selected to the extent prescribed and traced into the Capital and Revenue Journals by the Books and Budget Headquarters Audit Section. If the number of Journal Vouchers selected for audit does not come up to the number of Journal Vouchers selected for tracing into Journal, a subsidiary selection should be obtained by Books and Budget Headquarters Audit Section to make up the deficiency and get these Journal Vouchers also audited by the sections concerned. Similarly, the Books and Budget Audit Sections attached to the Divisions, Workshops etc. should trace the Journal Vouchers selected into Works/Revenue Allocation Registers and the Journals maintained by the respective Accounting Units. 238

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806. Check of monthly accounts with schedules and Journals (Capital and Revenue): The Capital and Revenue Account Current should be checked monthly to the extent prescribed. Account Current for the month of March should be checked completely. During the check of monthly accounts, the totals in the Journals of the amounts debited and credited to each detailed head should be checked and traced into the summary at the end. The total debits and credits to the main Heads of Accounts booked in the Capital and Revenue Journals should be traced into the debit and credit columns of the Ledgers. The opening balance of the month in the Ledger should be verified with the closing balance of the previous month. The correctness of the closing balance should then be checked. It should be seen that the Heads of Account shown in the Ledgers, Journals and Account Current are correct and upto date. It should also be seen that the Account Current are supported by proper schedules that accompany them and that the totals of the entries in the schedules agree with the figures under the respective Heads shown in the Account Current. After the check of the Account Current compiled by the Divisional Accounts Officers, Accounts Officers (Construction) and Workshop and Stores, the corresponding Audit Offices should send an advice of audit to the Branch Officer, Books and Budget Headquarters Audit Section, by the 25th of each month to enable the latter to verify the consolidated Account Current for the entire Railway compiled by the Financial Adviser and Chief Accounts Officer. As regards the consolidated Account Current sent to the Railway Board monthly, a register (vide Para 339 A-I) is maintained separately for Capital and Revenue Account Current by the Headquarters Books Section of the Accounts Office for consolidating the details received from the several units. The postings in the register should be first checked with reference to the Account Current received from the various units. The correctness of the totals should then be checked. Thereafter, the consolidated Ledgers and Account Current should be checked with reference to this register. The fair copies of the consolidated Account Current relating to the entire Railway for the month of March are sent to this office by the Financial Adviser and Chief Accounts Officer, Secunderabad, before despatch to the Railway Board for recording the certificate “compared with the office copy and found to be a true copy”, prescribed in Para 388 of Railway Audit Manual, along with the office copies. After comparison of the Account Current, the certificate should be recorded therein and returned to the Accounts Office, retaining one copy each of the Account Current for record in this office. The check of the Account Current should be taken up separately and completed by the due date. (Para 372 of Railway Audit Manual and Paras 323 to 331 AI) 807. Pay orders for payment of unpaid wages: Pay orders for payment of unpaid wages should be audited in accordance with the instructions contained in Para 376(3) to (5) of Railway Audit Manual. 808 Budget Registers and Reappropriation Statements: The financial reviews prepared by the Accounts Officer every month and submitted to the Executives and the latter’s remarks to the reviews should be scrutinised, in terms of Paras 399 and 400 of Railway Audit Manual and Paras 375 to 381 of Finance Code Vol.I. 809. Check of vouchers in connection with inter-dominion transactions with Pakistan Government: With a view to seeing that irregularities noticed in audit on the check of vouchers relating to inter-dominion transactions with Pakistan Government are rectified and necessary adjustments are carried out promptly, the vouchers sent by this Railway to the Railway Board in support of monthly advice of debits/credits to be raised against Pakistan Government as well as the vouchers received from the Railway Board in respect of debits/credits raised by them should be checked by the Books and Budget Audit Section and 239

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all other auditing sections concurrently before the vouchers leave the Accounts Office. For this purpose, the Financial Adviser and Chief Accounts Officer has been advised to make available to audit the vouchers and other relevant documents for check. The auditing sections should check and return the vouchers within two days of their receipt in this office. The supporting vouchers accompanying the inward and outward accounts should be checked to the extent prescribed. Books and Budget Audit Section (Headquarters) is responsible for the check of consolidated advice of outward transactions sent to the Railway Board. In order to enable the Books and Budget Audit Section (Headquarters) to ensure that the detailed accounts and vouchers consolidated have been duly checked, an advice of audit should be sent by the respective auditing sections to the Books and Budget Headquarters Audit Section each month as soon as the accounts and vouchers relating to the inter-dominion transactions are checked. A Nil report should be sent if there are no transactions during the month. The inward schedules of debits/credits received from the Railway Board and sent by the Accounts Office should be checked by the Auditing Sections concerned and the results intimated to Books and Budget Section (Headquarters). The latter should verify that items intimated to the Railway Board after acceptance have been pre-checked in Audit. 810. Review of Suspense Register: The suspense register “Accounts with Pakistan Government Railways” should be reviewed quarterly to see that it has been correctly posted and the outstandings are cleared expeditiously. (D.A./S.C.Rly.’s letter No.Au/BHQ/4/Inter-Dominion to F.A.&C.A.O./SC). 811. Inter-dominion agreements, contracts, having financial implications: As and when cases of agreements and contracts having financial implications reached at inter-dominion level are noticed, they should be reported to the Comptroller and Auditor General(Rlys). The progress made in the implementation of the terms and conditions of such agreements should be continuously watched and progress reports indicating the position as at the end of June and December should be furnished so as to reach the Comptroller and Auditor General(Rlys) by 30th June and 31st December every year. If there is no material a ‘Nil” report should be sent. (DRA’s letter No.A.8/10/53 dated 8.6.1955) 812. Registers of (i) Irregularities (ii) Serious Irregularities (iii) Losses and (iv) Registers of overpayments foregone: These registers maintained in the Accounts Offices should be reviewed by the Books and Budget Audit Section at Headquarters and in Branch Offices. While reviewing the registers, the relevant files of Accounts office should also be reviewed to see whether: (i) (ii) (iii)

the case could be considered for a comment in the Audit Report; action taken by Administration is adequate, and safeguards exist to avoid recurrence of such irregularities.

The results of the review should be recorded in the Selection Register and submitted to the Branch Officer. (Paras 861, 847-AI and Paras 477 and 492 of Railway Audit Manual) 813. Review of Register of Major and Minor Deviations: The Register maintained in the Accounts Office should be reviewed and a report sent to Books and Budget Headquarters 240

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Audit Section by Books and Budget Audit Sections in Divisions/Construction Audit Units etc. indicating major and minor deviations noticed by Accounts Office as well as in Audit. "Nil" return need not be sent. 814. Reconciliation of unpaid wages with General Books: While conducting the review in audit, the instructions contained in Paras 316-319 and 614 (i) A-I should be borne in mind. 815. General Cash Book: See Para 367 of Railway Audit Manual. 816. Cashier's Cash Book: The general instructions of Audit are contained in Para 368 of Railway Audit Manual. The following points should also be seen. (a)

The opening balance agrees with the closing balance of the previous day.

(b)

The total traffic collection tally with the total of the summary of traffic check sheets (Para 1943 AI).

(c)

The miscellaneous collections tally with the daily total of the miscellaneous cash receipt books.

(d)

The remittances into treasuries agree with the amounts in the counter foils of remittance notes and they are supported by the Treasury receipts (Para 1944 A-I).

(e)

The closing balance is correct and agrees with the closing cash balance shown in the General cash book maintained by the Books Section.

(f)

The cash book has been checked daily by the Accounts Officer, and

(g)

The cash balance with the Chief Cashier has been verified by an Accounts Officer as contemplated in Para 1919 AI. (Paras No 1907-1993 A.I.)

817. Divisional Cashier's(including cashiers) cash book.: It should be seen that: (i)

the opening balance of each day is correct with reference to the closing balance of the previous day;

(ii)

all the cheques issued in favour of the Divisional Cashier for disbursement of the bills included in the Abstract of Bills(Co7) passed during the month have been correctly taken to account in the cash book;

(iii)

the receipts of the payees are forthcoming in all cases where payments have been made;

(iv)

treasury receipts are forthcoming for amounts returned as unpaid;

(v)

no bills are retained by the Divisional Cashier beyond the period permitted under Para 1988 AI;

(vi)

the arithmetical totals are correct;and

(vii)

the acquittance certificate has been recorded by the Accounts Officer on the cash book (Para 1963 AI). (Paras 1962 and 1963 A.I.)

818. Review of Miscellaneous Advances and Deposit Miscellaneous Registers: In reviewing the registers, it should be seen whether the instructions contained in Para 322 AI are being observed. The outstandings at the end of the month of accounts selected for audit 241

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should be traced back to the month of origin in addition to a general review. The instructions contained in Para 610 and 614 (3) A.I. and Paras 381 and 382 of Railway Audit Manual should be borne in mind. (Paras 320 and 321 A.I.). 819. Review of Demands Payable Register: It should be seen whether the balances as per the register are reconciled monthly with those appearing in the General Books (Para 322 A.I.). While reviewing the register, the instructions contained in Para 611 A.I. should be borne in mind (Para 220 A.I.). 820. Adjustment with other Government Departments: With the departmentalisation of Government Accounts, the transactions arising between the Ministry of Railways and the other Ministries of the Central Government and the State Government are settled by the issue of cheques or Government drafts except in the case of transactions mentioned in Para 402 A.I. It should be seen that the entire balance under "Reserve Bank Suspense" is cleared by the end of each financial year and that there is no undue delay in the clearance of items relating to "Accounts with States". It should be further seen that when sufficient details are not available for adjusting to the appropriate service head, the items included in the accounts and vouchers are adjusted by operating "Miscellaneous Advances" (Para 223 (a) A.I.) by per contra adjustment to “Reserve Bank Deposits(Railways)” and not the suspense head "Reserve Bank Suspense". The instructions regarding reconciliation of balances under the suspense heads of accounts and the suspense head "Reserve Bank Deposits" contained in Paras 432, 444 and 445 A.I. may also be borne in mind. (Para 371 of Railway Audit Manual and Paras 402 and 436 A.I.). 821. Transfers within the Railways and Transfers with other Railways: See Para 404 to 407 A.I. and Para 373 of Railway Audit Manual. 822. Branch Line Contracts: There are no branch line contracts on the South Central Railway. (Para 378 of Railway Audit Manual ) 823. Debt Head Report: The Debt Head Report will be compiled by the Accounts Officers attached to Divisions, Constructions, Workshops etc. in respect of Debt Heads operated by them and sent to the Headquarters Books Section of the F.A.&.C.A.O.'s Office, simultaneously endorsing a copy thereof to the Audit Officers concerned for verification. The respective audit section will verify the reports with reference to the previous year's audited statements and ledgers maintained in the Accounts Offices and forward Audit remarks to A/cs. In auditing the Debt Head Report, it should be seen whether the general instructions issued by the Railway Board in their letters mentioned below for the compilation of the reports have been complied with: (1) (2)

61-ACI/8/60-61 dated 17.8.1961. 62-ACI/8/1/61-62 dated 17.5.1962.

A copy of the audited Debt Head Report together with comments which could not be settled at the unit level will be forwarded by the auditing sections to Books and Budget Headquarters Audit Section.

242

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Based on the Debt Head Reports received from the various Accounts Officers, the Headquarters Books Section of Financial Adviser and Chief Accounts Officer's Office will prepare a consolidated Debt Head Report for the entire railway and forward the same to the Railway Board and the Books and Budget Headquarters Audit Section. The latter will check the report bearing in mind the observations made by other auditing sections. The Books and Budget Headquarters Audit Section will return the audited copy of the Debt Head Report to the Financial Adviser and Chief Accounts Officer incorporating the audit certificate prescribed in Para 8(g) of the Railway Audit Manual. A copy of the audited Debt Head Report should be sent to the Comptroller and Auditor General(Railways) by the due date. After finalisation of the Debt Head Report, a statement showing the details of misclassifications noticed should be drawn up in the following form by the Audit Offices concerned and sent to the Books and Budget Headquarters Section, duly accepted by their Accounts counterparts.

Sl. No.

Brief particulars of misclassification

Head of Account (credited/ debited)

1.

2.

3.

Correct Head of Account which should have been credited or debited 4.

Amount

Remarks

5.

6.

Based on the reports received from the Unit Audit Officers and those irregularities noticed while verifying the consolidated Debt Head Reports, the Books and Budget Headquarters Audit Section will compile a statement of misclassification and forward it to the Financial Adviser and Chief Accounts Officer for his acceptance. When there are misclassifications, the Audit Certificate on the Debt Head Report should be qualified. It should be noted that unlike 'Annexure-J' Statement of misclassifications and other mistakes, appended to the Appropriation Accounts, the Statement of Misclassifications affecting the Debt Heads has to be prepared by Audit and the remarks of Financial Adviser and Chief Accounts Officer thereon obtained, as it is part of audit observations on the Debt Head Report (Comptroller and Auditor General's U.O.I. No.720RAII/I/6/56 dated 25th May 1960). An advance copy of the statement showing the misclassifications prepared by Audit and forwarded to the Financial Adviser and Chief Accounts Officer for acceptance should be sent along with the audited copy of the Debt Head Report to the Comptroller and Auditor General(Railways). On receipt of final reply to the Audit observations from the Financial Adviser and Chief Accounts Officer, the Comptroller and Auditor General (Railways) should also be intimated. (Paras 748-752 A.I. and Para 383 of Railway Audit Manual). 824. Capital and Revenue Accounts: The Auditing Sections will verify the information furnished by the Accounts Officers at Headquarters and Divisions for compilation of Capital and Revenue Accounts and intimate results thereof to Books and Budget Headquarters Audit Section. The Financial Adviser and Chief Accounts Officer will compile the Capital and 243

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Revenue Accounts of the Railway and forward them to the Railway Board furnishing simultaneously copies thereof to the Books and Budget Headquarters Audit Section for verification. In scrutinising the Capital and Revenue Accounts, the instructions contained in Para 374 of Railway Audit Manual should be borne in mind. The Capital and Revenue Accounts will be checked in detail as indicated in the following paragraphs. Irregularities noticed should be pointed out to the Financial Adviser and Chief Accounts Officer for rectification. Statement No.I: Statement of Capital Outlay authorised: This will be checked with the final copy of the previous year's account, the ledger and the audited copies of the statement of Transfers Without Financial Adjustment sent to the Comptroller and Auditor General (Railways) separately. Statement No.II: Stock and Share Capital created showing the proportion received. Statement No.III: Capital raised by loans, debentures and debentures stock. Statement No.IV: Receipts and Expenditure on Capital Account. Statement No.VII: Capital Powers and other assets available to meet the other expenditure. These statements relate to worked lines. As there are no worked lines on the South Central Railway, these statements are not prepared. Statement No.V: Details of Capital Expenditure for the year. In this statement, the expenditure during the year will be shown by main Heads of Accounts (final Heads of Accounts) under the major head “546-Cap. Outlay on Indian Railways (Commercial)” in respect of Open Line and in respect of each of the new constructions separately. The statements received from the various auditing units showing the actual expenditure for the year by detailed Heads of Accounts under the said major head will be consulted to verify the correctness of the figures shown in the consolidated statement as well as in Schedule 'C' appended to the Finance Accounts. It should be ensured that the totals under each of the minor Heads of Account under the said Major Head in respect of open line and each of the new constructions agree with the figures shown in the ledger and relevant schedules sent with the Capital Account Current for March. Statement No.VI: Statement showing estimates of further expenditure on Capital Account. The details in respect of open line and each of the new constructions will be indicated separately in this statement also. The figures shown under the Column "Total expenditure from commencement of operation to the end of the year" should be verified with reference to the figures shown in the previous year's final copy of the Accounts, the expenditure during the year shown in Statement V of the current year and the amounts of transfers effected without financial adjustment affecting the Heads of Account as shown in the audited copies of the statement sent to the Comptroller and Auditor General (Railways). The figures shown against each minor Head of Account in respect of Open Line and each of the new constructions should also be verified with those indicated in the ledger/relevant schedules accompanying the Capital Account Current for March. Statement No.VIII: Capital Account: The details shown in this statement will be checked with those shown in the final copy of the previous year's accounts and Statement No.VI of the current year.

244

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Statement No.IX: Revenue Account: The details of earnings given in the statement will be verified with the details shown in the schedule of earnings enclosed to the Account Current (REV) for March. As regards working expenses, the statements received by the auditing sections from the respective Accounts Officers will be checked with the Revenue Allocation Sheets of their units and results advised to Books and Budget Headquarters Audit Section, which will verify the details with reference to the statements received from other Auditing sections. Statement No.X: Distribution of the actual earnings and proportionate shares of working expenses of the various lines comprising the Railway Systems: The particulars of actual earnings and proportionate shares of working expenses of the various lines of the South Central Railway system will be verified with those shown in Statement No.IX. Statement No.XI: Summary of Working Expenses: This will be checked with reference to the audited statements received from the various units. Statement No.XII: Detailed accounts of Revenue working expenses: The details received from the various units duly audited will be traced into gauge-wise consolidated allocation sheets in respect of each of the Revenue Abstracts prepared by Headquarters Books Section of the Accounts Office. The correctness of the totals shown in the consolidated sheets will also be checked. The details shown in the above statement will be verified with the checked details in the consolidated allocation sheets. It should be ensured that the particulars given in the statements agree with those shown in Statement No.XI. In the case of all abstracts, it should be ensured that the various sub-detailed Heads of Account are current and all Heads of Account are exhibited irrespective of whether expenditure is booked against any head or not. For this purpose, the audited copy of the statement showing the changes in the form and classification sent to the Comptroller and Auditor General (Railways) should be referred to. Statement No.XIII: Detailed Accounts of Revenue Earnings: The information furnished by the Traffic Accounts Branch for incorporation in this statement will be verified by the Traffic Audit Section with reference to the records maintained in the Traffic Accounts Branch (Sundry) and an audited copy thereof furnished to the Books and Budget Headquarters Audit Section. Based on the advice received from the Traffic Audit Section, the Books and Budget Headquarters Audit Section will check the correctness of the details given in this statement. Statement No.XIV: Statement of outstanding earnings: The details furnished for this statement by the Traffic Accounts Branch will be verified by the Traffic Audit Section with reference to the station balance sheets as regards station outstandings and with the Accounts Office Balance Sheets and Register of Bills Recoverable in regard to other outstandings and results advised to Books and Budget Headquarters Audit Section, which will check the statement with reference to the report of Traffic Audit Section. Statement No.XV: Net Revenue Account: The figures of Dividend Payable to General Revenues for the year shown in this statement should be verified with reference to the audited final copy of the statement showing the detailed calculations of Dividend Payable to General Revenues forwarded to the Comptroller and Auditor General (Railways). Statement No.XVI: Account of Total Net Receipts: This will be checked with the final copy of the previous year’s account, the Revenue Ledger and statement No.IX of the current year. 245

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Statement No.XVII: Dividend Account: This will be checked with the previous year’s final copy of the accounts and statement No.XVI of the current year. Statement No.XVII-A: Statement showing capital at charge and calculation of Dividend payable to General Revenues. Statement No.XVII-B: Statement showing details of subsidy under specific heads received from General Revenues. These should be checked with the audited copies of the statements sent to the Comptroller and Auditor General (Railways) separately. Statement No.XVIII: Depreciation Reserve Fund Account: The opening balance in the fund shown in the statement should be checked with the closing balance indicated in the accepted copy of the previous year’s accounts and the statement showing transfers effected without financial adjustment during the year. The amount of replacement and renewals expenditure and credits for released materials will be checked with the schedules of the working expenses accompanying the Account Current for March of the year. The amount of appropriation to Depreciation Reserve Fund and closing balance will be verified with the consolidated Revenue Ledger. The figure of interest charges should be the same amount as shown in the transfer certificate sent to the Railway Board. Statement No.XVIII-A: Railway Pension Fund: The process of check of this statement is similar to the one adopted for Statement No.XVIII mentioned above. While checking the correctness of the amount of appropriation to Pension Fund, the appropriation to the fund in respect of Railway Audit staff should be checked with reference to the amount shown in the schedule of expenditure under “345-Indian Railways Policy Formulation, Direction, Research and other miscellaneous organisation” accompanying the Account Current for March. The method of calculation of interest on the balance in the funds is also the same as for Depreciation Reserve Fund. Statement No.XVIII-B: Accident Compensation Safety and Passenger Amenities Fund. Statement No.XIX: Expenditure under 345 – Indian Railways Policy Formulation, Direction, Research and other miscellaneous organisation: It should be seen that the minor heads as well as main heads under each minor head have been exhibited in the order laid down in the list of Major and Minor Heads of Account in Appendix IV-A.I., as amended from time to time. The details of outlay shown against the various minor heads should be verified with reference to the reports received from the various auditing units, schedule accompanying the Account Current for March and the audited copy of the statement for the previous year. The correctness of the figures of outlay to the end of the year should be checked taking also into account the amounts transferred without financial adjustments, if any, during the year. Details furnished in the statement showing the detailed account of expenditure on closed surveys should be verified with the audited copy of the previous year’s accounts as well as additions/deletions, if any, during the year, as intimated by the corresponding audit sections. Statement No.XX: Expenditure charged to Development Fund. Statement No.XXI: Expenditure charged to Open Line Works Revenue: (i)

The details of outlay to end of the year should be checked with reference to the audited statement of the previous year. 246

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(ii)

The audited copy of the statement of transfers without financial adjustments, and

(iii)

The Statements indicating the details of expenditure during the year (charged to Development Fund – Open Line Works Revenue) received from the various auditing Units. The following points should be borne in mind in checking the statements:

(a)

The nomenclature of the main and sub-heads shown in these statements is that prescribed in Appendix IV to the Indian Railway Code for the Accounts Department – Part.I.

(b)

The figures of outlay for the year under each of the minor heads under Development Fund and Open Line Works Revenue agree with the net figures appearing against the concerned items in the relevant schedules sent with the Revenue Account Current for March of the year. It should be ensured that differences, if any, due to rectification through Capital and Revenue Accounts in terms of para 922 – Finance Code, are explained suitably through foot notes in the statements.

(c)

It should be seen that even though the figures ‘Credits’ in respect of Development Fund (I and II) are shown separately in the Schedule to the Account Current, they are not shown as a separate item in the Statement No.XX (such credits should be merged with the expenditure relating to the main and sub-heads under the said minor heads).

(d)

At times, certain items of expenditure booked under Development Fund and Open Line Works Revenue do not fall under any of the minor sub-heads under the various minor heads of account. In such cases, the amount should be included under such sub-heads in which they could be merged based on the description of the items given by the units and a suitable foot note given in the schedule concerned.

After finalisation of the points raised by audit, the Financial Adviser and Chief Accounts Officer will arrange to get the Accounts printed and furnish printed copies of the Capital and Revenue Accounts to Audit. Advance copies of the Capital and Revenue Accounts together with the audit certificates prescribed in Para 388 of Railway Audit Manual should invariably be sent to the Comptroller and Auditor General (Railways) as soon as their audit is completed. When the printed copy of the account is received, it should also be sent to the Comptroller and Auditor General (Railways). (Chapter VII A.I.) (Comptroller and Auditor General (Railways) letter No.2621-RAII/4-11/61 dated 19.7.1961). 824. Finance Accounts: The instructions issued through Comptroller and Auditor General’s letter dated 19.7.1961 mentioned in preceding Para are also applicable in the case of Finance Accounts. (Paras 728-747 A.I. and Para 380 of Railway Audit Manual) 825. Statement showing Transfers Without Financial Adjustments: The Unit Accounts Officers will compile this statement and send to the Financial Adviser and Chief Accounts 247

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Officer, furnishing copies thereof simultaneously to the respective Audit Officers for verification. The Audit Officers after verification of the statement will advise the results to the Books and Budget Headquarters Audit Section, which will audit the statement compiled by the Financial Adviser and Chief Accounts Officer for the entire Railway based on the advices received from the Unit Audit Officers. Copies of the audited statement will be furnished to the Comptroller and Auditor General (Railways). In checking this statement, it should be seen that in respect of inter-Railway adjustments, the acceptance of the Foreign Railways to the inclusion of the amounts ‘per contra’ in the statements relating to them has been obtained and kept on record. Generally, copies of the statements relating to other Railways will also be received in the Accounts Office if any items having ‘per contra’ adjustments with the South Central Railway are included therein. Such statements should also be consulted to see that inter-Railway adjustments shown in the statements pertaining to South Central Railway have been correctly reflected by other Railways. Item of adjustments affected within the Railway (Intra Railway) should be verified with reference to audited details received from the various units and the authority for such adjustments. It should also be seen that in respect of adjustments relating to ‘Loans and advances by the Central Government’ and ‘Indian Railway Deposits’ details of the amounts pertaining to each of the minor heads/classified heads thereunder are furnished separately and not in one lump. While forwarding audited copies of the statements, copies of correspondence between the Railway Board and the Railway Administration in support of adjustments referred to in the statements should be sent. Copies of general orders issued by the Railway Board applicable to all Railways and forwarded through the Comptroller and Auditor General (Railways) need not however be sent. (CAG(R)’s letter No.2719-RAII(L)1-7/62 dated 29.8.1962). 826. Statement showing calculations of Dividend Payable to General Revenues: The figures shown against the items “Total Capital-at-Charge” and “Capital outlay incurred on new lines to end of previous year” under “Deduct entry” will be checked with those appearing in the audited copy of the statement for the previous year. The outlay on “New Lines” which have been opened for traffic should not be taken into account till the end of the fifth year of their opening for traffic. The amount of Transfers Without Financial Adjustments during the year should be verified with reference to the audited statement sent to the Comptroller and Auditor General (Railways). The figures of over-capitalisation should be verified with those advised by the Railway Board in their letter No.F(X)/III-61 Cg.I dated 30.10.1963 and accepted by the Comptroller and Auditor General (Railways). The correctness of ‘net capital at charge to end of previous year’ should then be verified. The figures of capital out-lay incurred from 1.4.1980 to end of previous year should be verified with the audited statement for the previous year. The figures of capital outlay during the year including new constructions and the capital outlay on New Lines (appearing under ‘deduct entry’) should be verified with reference to the schedules appended to the Capital Account Current for March of the year. Thereafter, the correctness of the figures of the net capital outlay incurred during the year (and half thereof) will be verified. The correctness of the dividend payable on the capital at charge to end of 1979-80 for which a lower rate is applicable and on the Capital Outlay for subsequent periods should be checked. It should be seen that the rate of interest advised by the Railway Board for calculation of dividend payable on the element of over-capitalisation has been correctly adopted.

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The correctness of the amount of deferred dividend repayable in respect of any New Line which has completed the moratorium period should then be verified with reference to the Statement of Deferred Dividend, described in the following paragraph. The total amount of dividend for the year proposed to be paid will then be verified. 827. Statement of Deferred Dividend: This will be prepared according to the instructions contained in Railway Board’s letter No.57-AC/I/7 dated 8.5.1957, an extract of which is given below: “In terms of Para 19 of the Report of the Railway Convention Committee 1954, dividend on capital at charge on new line should be computed at a lesser rate viz., the average borrowing rate charged to the Commercial Departments. The dividend so calculated for the period of construction of the lines and upto the end of the fifth year of their opening for traffic, is to be deferred during that period. From the sixth year onwards, current dividend will be paid. In addition, deferred dividend is to be paid if the net income of these lines leaves a surplus after payment of current dividend.” A statement showing the Capital outlay in respect of each new line and deferred dividend etc. should be submitted as an enclosure to the statement. 828. Contingency Fund – Exhibition of transactions in the combined Finance and Revenue Accounts: The Headquarters Books Section of the Financial Adviser and Chief Accounts Officer’s Office will compile the statement in the form prescribed and forward it to the Railway Board furnishing copies thereof to Audit for verification. The Books and Budget Headquarters Audit Section will verify the statement with reference to the audited copy of the statement for the previous year, the sanctions received from the Railway Board showing the amounts allotted from the Contingency Fund of India during the year, Account Current for March and the registers maintained in Accounts Office. It should be seen that suitable foot note in regard to the advance taken from the Contingency Fund of India and recouped to the Fund during the same year is given in the Fund Account in terms of Railway Board’s letter No.72-AC/1/7/4 dated __June, 1973. The results of verification will be intimated to the Financial Adviser and Chief Accounts Officer. A copy of the audited statement will be sent to the Comptroller and Auditor General (Railways). (Railway Board’s letters No.55 ACI/7/5 dated 17.3.1956, No.55 ACI/7/5 dated 27.5.1956, No.61 ACI/7/4 dated 16.8.1961 and Comptroller and Auditor General’s letter No.RAII/T4-2/55 dated Nil). 829. New Services not contemplated in the Budget: In order that cases of ‘New Service/New Instrument of Service’ could be avoided as far as possible, the Comptroller and Auditor General has decided that where an Accountant General feels a doubt about a particular expenditure sanction whether the expenditure attracts the provisions of ‘New Service/New Instrument of Service’, he should immediately (prior to authorisation of payment) take up the matter demi-officially with the Secretary/Joint Secretary of the Administrative Ministry concerned with a copy to the Joint Secretary to the Ministry of Finance (Budget) for reconsideration. Copy of the reference made by the Accountant General should also be endorsed to the Comptroller and Auditor General along with a brief history of the case. The underlying intention is that if the Administrative Ministry/Ministry of Finance does not agree with the views of the Accountant General, the matter can be discussed by them with the Comptroller and Auditor General’s office to resolve the difference of opinion quickly without unduly delaying the expenditure. If it is finally held that the case attracts the provisions of “New Service/New Instrument of Service”, action 249

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could be initiated by the Department for obtaining supplementary grant or an advance from the Contingency Fund of India. This procedure is applicable only to cases of expenditure sanctioned by the Central Government. (CAG’s letter No.1912-REP/274-65 dated 24.9.1968; received under A.D.A.I.(R)’s letter No.4626-RR/6-1/68 dated 28.10.1968). On the Railway side 'authorisations' to executive officers to incur expenditure on works are issued by competent authorities and copies of such 'authorisations' are endorsed to the respective Principal Directors of Audit. On receipt of such 'authorisations', the concerned auditing sections may, in addition to the works contained in the Works, Machinery and Rolling Stock Programme of the Railway for the year, review such works as desired in Comptroller and Auditor General’s letter mentioned above to see if expenditure thereon does not attract the provision of ‘New Service/New Instrument of Service’ and take up the matter with the Railway Administration, if necessary, with the least possible delay. (CAG(R)’s letter No.704-RR/6-1/68 dated ‘nil’). A report on New Services not contemplated in the Budget including expenditure on individual surveys which exceeded Rs.1 lakh should be sent to the Comptroller and Auditor General in October every year. (CAG’s letter No.3570-RR/8-1/66 dated 25.11.1966). (Para 265 of Railway Audit Manual). APPROPRIATION AUDIT 830. Annual Budget – Revised and Budget Estimates: The Heads of Departments and Divisional Railway Managers of the Railway are responsible for framing at various stages the budget estimates correctly. For this purpose, each Head of Department as well as the Divisional Railway Manager nominates a Budget Officer. The nominated Budget Officer in the Division will furnish the budget estimates duly scrutinised by the Accounts Officer concerned to the Head of Department concerned. The Heads of Departments concerned will furnish the budget estimates to the Financial Adviser and Chief Accounts Officer for scrutiny. Thereafter, the Central Budget Section functioning under the supervision of the Financial Adviser and Chief Accounts Officer will consolidate the estimates and send them to the Railway Board. On receipt of approval to the estimates from the Railway Board, the Heads of Departments will be advised about the grants pertaining to their departments. On the basis of budget orders issued by the Railway Board, the Heads of Departments will, in turn, furnish to Financial Adviser and Chief Accounts Officer the statements showing the proposed distribution of grant between Headquarters and Divisions. To exercise effective control over expenditure, the budget grant placed at the disposal of the department shall be distributed over the entire year. Financial reviews shall be prepared every month by the Accounts Officer concerned and sent to the Budget Officer who will furnish self-contained remarks to the Accounts Officer for variations, demand-wise by detailed head of demand/department. The consolidated position for the department as a whole of all the divisions will be discussed in Heads of Departments meeting for which necessary notes will be prepared by the Central Budget Section. The position of requirement of funds under the various grants will be examined by the Railway Administration at various stages viz., at the time of preparation of August Review, Revised Estimates and Final modifications.

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(F.A.&.C.A.O.’s circular letter No.SC/CB/1966/1 dated 1.10.1966 circulated under Books and Budget (Headquarters) letter No.Au/BHQ/4-Vol.II/16 dated 4/71 and Chapter – III of Finance Code). 831. Appropriation Accounts: The form in which the Appropriation Accounts of the Railways are prepared, the various statements and appendices to be enclosed to the Appropriation Accounts and the instructions for their preparation are contained in Chapter IV of the Finance Code. In addition, further detailed instructions for preparation of all grants and compilation of various annexures to the Appropriation Accounts embodying the latest orders of the Railway Board are issued by the Financial Adviser and Chief Accounts Officer from time to time for the guidance of all concerned. Copies of these instructions together with audit instructions, wherever necessary, are sent to all auditing sections by the Books and Budget Headquarters Audit Section. The audit of Appropriation Accounts has to be conducted keeping in view the method of budgeting, the procedure of allotment of funds, the reviews undertaken to watch the progress of expenditure against the allotments and steps taken to avoid excess over allotments or to surrender excessive funds or to obtain additional funds required. The instructions contained in Chapter III to V of Finance Code, Chapter XX and Appendix 5 to Railway Audit Manual and the subsidiary instructions issued by the Railway Administration and Books and Budget Headquarters Audit Section from time to time should be borne in mind in auditing the Appropriation Accounts. The Appropriation Accounts, the statements and appendices to be enclosed thereto, are prepared by the various accounting units. These are consolidated for purposes of presenting the same for the Railway as a whole by the Central Budget Section functioning under the supervision of Financial Adviser and Chief Accounts Officer. The audit of the Appropriation Accounts, statements etc. relating to an individual unit, prepared by the Accounts Officer responsible for the maintenance of the accounts of that unit devolves on the corresponding Audit Office/Section. The audit of the consolidated Appropriation Accounts and the statements etc. accompanying the same is conducted by the Books and Budget Headquarters Audit Section with reference to the audited copies of the Appropriation Accounts and statements etc. pertaining to the units received from the different Audit Offices/Sections. For the purpose of submission of the Appropriation Accounts of the Railways in India and the Audit Report thereon to the Lok Sabha/Rajya Sabha promptly by the date fixed for the purpose, a detailed time table for submission of the various accounts, annexures and statements of the individual Railway Administrations to the Railway Board and to the Comptroller and Auditor General by the Principal Directors of Audit will be drawn up each year by the Railway Board in consultation with the Comptroller and Auditor General of India. Copies of the same will be sent to the Railway Administration. Based on this, the Financial Adviser and Chief Accounts Officer will draw up a similar programme laying down the dates on which the statements should be furnished to the Headquarters’ office, duly scrutinised by Accounts and Audit. The accounts and statements received from the various Accounts Officers should be audited by the auditing sections concerned on top priority basis and the Books and Budget Headquarters Audit Section advised sufficiently in advance to enable that section to check the consolidated Appropriation Accounts and Annexures and intimate results thereof to the Comptroller and Auditor General of India by the due dates fixed by the latter. To eliminate all avoidable delays, it is imperative that objections noticed as a result of check of Appropriation Accounts should be settled expeditiously, inter-alia, by holding discussions with the Accounts and Executive Officers at the appropriate level and not

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left to be resolved by resorting to routine correspondence. The following Appropriation Accounts and Annexures including Grand Summary are sent to Audit for check. Detailed Appropriation Accounts: Grant No.1

Railway Board

Grant No.2

Miscellaneous Expenditure (General)

Grant No.3

General Superintendence and Services

Grant No.4

Repairs and Maintenance of Permanent Way Works.

Grant No.5

Repairs and Maintenance of Motive Power.

Grant No.6

Repairs and Maintenance of Carriages and Wagons.

Grant No.7

Repairs and Maintenance of Plant and Equipment.

Grant No.8

Operating Expenses Rolling Stock and Equipment.

Grant No.9

Operating Expenses – Traffic.

Grant No.10 Operating Expenses – Fuel. Grant No.11 Staff Welfare and Amenities. Grant No.12 Miscellaneous Working Expenses Grant No.13 Provident Fund, Pension and other Retirement benefits. Grant No.14 Appropriation to Fund. Grant No.15 Dividend to General Revenues – Repayment of loans taken from General Revenues and Amortisation of over-capitalisation. (To be compiled in Railway Board’s office). Grant No.16 Assets, Acquisition, Construction and Replacement. Civil Grants: (i) (ii) (iii)

Loans and Advances. Interest on Debt and other obligations. Prepartition payments.

Part Review: Subsidiary statements and Accounts including Grand Summary. (Please see paras 433, 436, 437, 438, 439, 440, 449, 457 and 464 – Finance Code). 832. Check of Appropriation Accounts: The Appropriation Accounts of all Grants except Grant No.14 should be checked to see that:

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(a)

the original grant amount as shown in Appropriation Accounts agrees with the amount allotted to the unit by the competent authority,

(b)

the supplementary grant amount should agree with the amount as shown in the distribution statement of supplementary grant sanctioned by competent authority,

(c)

the residuary modification as shown in Column I should agree with difference between original grant + supplementary grant sanctioned by competent authority,

(d)

the final grant amount as shown in the Appropriation Account should agree with the final grant allotted to the unit by the competent authority,

(e)

the actual expenditure should be verified with the actual amount of expenditure for the year as shown in the March accounts (to the end of the month), and

(f)

the variation shown in Column IV should agree with the difference between actual expenditure and final grant. Excess should be shown as ‘+’ and savings as ‘-‘.

In Headquarters Books Section, the Appropriation Accounts should be verified to see that the original grant amount as shown in the Appropriation Accounts agrees with the budget grant, as advised by Railway Board in the Books of Demand for Grants. In the case of Civil Grants, the figures will be verified from the budget orders received from the Railway Board. The supplementary grant amount should be verified with the Book of Supplementary Grants received from Railway Board. The final grant amount should agree with the Railway Board’s orders advising the final allotment to the Railway. The actual expenditure should be verified with reference to the amount shown in the relevant schedules to the final Account Current sent to the Railway Board in March. 833. Check of Civil Grants: Loans and Advances by Central Government: These Appropriation Accounts should be checked on the same lines as that prescribed for Railway Grants i.e. the original grant and final grants are to be verified from Railway Board’s letters and the actuals are to be verified from the Account Current. In the case of Civil Grant – Interest on debt and other obligations – the figures of actual expenditure will also be compared with the figures advised to the Railway Board. 834. Explanations in the Accounts: It should be seen that the explanations for variations between the budget grant and actual expenditure are lucid, self explanatory – illuminating and in unambiguous terms. The following points should also be borne in mind. In all cases, definite reasons for the excess or savings should be given bringing out clearly why the particular event leading to the variation could not be foreseen at the time of the preparation of the Budget and the Revised Estimates and what circumstances arose subsequently leading to the variation. In the case of an excess, it should be mentioned why the incurrence of the liability could not be postponed and if, for any reason to be specified, it could not be postponed, the explanation should bring out why necessary provision could not be made in the Final Estimates. The explanations also should elucidate: (a)

In the case of surrenders/lapses on account of non-receipt of bills or debits for stores (i)

the sources of supply, and

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(ii) (b)

whether the suppliers were consulted in the matter and, if so, at what stages, and

In case of increases/excesses on account of receipts of more debits or payments for stores; (i)

When those debits etc. were received and at what stages of estimates the suppliers were consulted.

(ii)

Variations arising out of changes in procedure, allocation, further consideration of schemes, plans etc. during the course of the year should be reflected in the explanations relating to all the concerned sub-heads of the grant or grants.

(iii)

In the case of variations arising out of defects in estimating, it should be clearly brought out at what stage the liability of the expenditure arose, how the error or omission or commission occurred, why it could not be set right before the close of the year, whether the question of individual responsibility has been considered and if so with what result and what steps have been taken to avoid a recurrence of such error.

(iv)

In the case of variations caused by misclassifications and other mistakes in accounting, the explanations should bring out when the errors occurred and why they could not be detected in the course of review of expenditure during the year and set right before the final closing of the year’s accounts.

(v)

Whenever reference to some letters of the Railway Board is quoted in support of the explanations, copy of the same should invariably be appended.

In the case of points referred to in items (ii), (iii) and (iv) above, it should be ensured that the fact that the items will be included in the relevant annexure/statements is mentioned in the explanations themselves. In so far as the Appropriation Accounts of the Divisions/Units are concerned, the explanations will continue to be furnished by sub-heads of grants. Further, limits below which explanations are not required to be furnished, as laid down in the Indian Railway Financial Code is applicable for the sub-heads of the grant as a whole and not intended to be applied to each individual Department/ Unit/Division. The explanations furnished in the audited copies of the accounts received from various units will be consolidated in the Headquarters Books and Budget Audit Section to verify the explanations furnished in the consolidated accounts received from the Financial Adviser and Chief Accounts Officer. 835. Framing of Audit Comments on Individual Grants/Annexures etc.: In addition to the instructions contained in Paras 415 to 417 of Railway Audit Manual, the following instructions should be borne in mind while framing comments, if any, considered necessary in important cases. (i)

All the Audit comments should be based on facts and not on inferences or assumptions.

(ii)

The facts on which the comment is based should be checked thoroughly and completely before the actual comment is framed. 254

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(iii)

Enquiries made by Audit as a prelude to the framing of the comment should be thorough and pursued to finality.

(iv)

In commenting on the irregularity, every endeavour should be made invariably to give a clear and correct account of it in plain language. Wherever figures are available, these should be indicated after ensuring the correctness of the same.

(v)

To make the comment a fair and unbiased record of facts, all such details as are essential should be incorporated in the comment.

(vi)

On receipt of the Administration’s remarks on a comment, a complete re-examination of the case should be made in an impartial manner before arriving at a final view in the matter. The comment may then be modified, if necessary, in consultation with the Railway Administration or dropped if the re-examination shows that the comment is not correct or otherwise unsuitable.

(vii)

If the facts have been verified by the Railway Administration but the conclusion drawn by audit not agreed to by them and still considered justifiable by Audit, a note should be sent along with the comment explaining clearly the views of the Railway Administration and the circumstances under which the retention of the comment is justified.

(viii)

Comments on small and unimportant variations of defects should be avoided. The magnitude of the grant concerned should also be taken into account for this purpose.

(ix)

Each comment should be typed on a separate sheet of paper and categorised on the lines adopted in the Railway Audit Report, 1952 - Part II and Railway Audit Report 1953.

(x)

Reference to the corresponding explanation number in the Appropriation Accounts should be quoted in the margin of the comments and the remarks "accepted" by the Administration or "Advance" should be quoted within brackets and the bottom of the comment.

(xi)

Comments on the various grants/annexures etc. should be sent to the Railway Administration for verification of Audit conclusions and not for acceptance of the same.

(xii)

In no case should the comments be reproduced in the body of the letters sent to the Comptroller and Auditor General of India (Railway Wing).

(xiii)

Whenever Railway Board's letters to the Railway Administration or the Railway Administration's letters to the Railway Board are referred to in the comment, copies thereof together with the copies of relevant letters to which these may be replies, should also be sent. ANNEXURES

836. Annexure 'A' - Statement of Unsanctioned Expenditure: This annexure should be compiled in the form Annexure A(I). This should be supported by two statements viz.,

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(i)

Annexure A(I), in Form F 445 - Annexure XVI which will indicate the details of individual items of objection amounting to Rupees One lakh each or more and the total amount in respect of objections amounting to not more than a lakh each under the three categories separately, and;

(ii)

Annexure A(II) in Form F 447 Annexure XVI showing the estimates provisionally accepted by Accounts or Audit.

A certificate in the following form, duly signed by the General Manager, will be appended to Annexure 'A': "Certified to the best of my knowledge and belief that all expenditure included in the Appropriation Accounts of South Central Railway for the year _________ has been sanctioned by competent authority with the exception of the items detailed in the Statement of Unsanctioned Expenditure (Annexure A) to the Appropriation Accounts.

GENERAL MANAGER” The various Divisions/Auditing Sections will scrutinise the Annexures relating to their Units with reference to the Register of Objectionable items of expenditure maintained by the Accounts Office and forward an audited copy to the Headquarters Expenditure Audit Section, which will consolidate the details for purposes of checking the consolidated Annexure. The method of exhibiting the figures in the revised form of Annexure 'A' has been indicated in the specimen form enclosed with the Railway Board's letter No.62Appn./62-61-62 dated 18th December, 1962. It should be noted that while the minus expenditure resulting from certain credit adjustments should be taken as plus for purpose of exhibition in Annexure 'A', the amounts of expenditure will, however, be shown in Annexure A(I) as minus figures only. (Para 2 of the Railway Board's letter No.62-Appn./62-61-62 dated 18th December 1962 received under Comptroller and Auditor General of India (Railway Wing)'s endorsement No.4380-RRI-26/62 Vol.II dated Nil). It should also be noted that while the figures in Annexure 'A' are to be shown in thousands of rupees, the figures in Annexure A(I) should be in units of rupees. The various Divisions/Units should, however, indicate the figure in Annexure 'A' also in units of rupees. In the statistics of expenditure under objection to be appended to the Annexure 'A', the figures shown against "Total amount placed under objection during the year under review and still under objection" should agree with the sum total of the figures shown in the columns "Expenditure during the year" appearing under the three sections "Items dating from earlier than previous year", "Items dating from the previous year", and "Items relating to the current year" of the Annexure. The figure of total amount of expenditure audited during the year under review to be shown in the statistics should be the total of the expenditure shown in the accounts of the grants. It should be noted that in the case of an item, which was shown in the statement of the previous year and which is occurring in the statement of the current year also, the figures of actual expenditures "relating to the previous year" and those "relating to the period upto earlier than previous year" and the "month in which unsanctioned expenditure 256

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was first incurred" shown in the statement of the current year agree with the details shown in the previous year's statement. If there is any discrepancy on account of some wrong figures having been adopted in the previous year's statements, the fact that discrepancy has been set right in the subsequent year's statement should be specifically mentioned in the form of footnotes. While forwarding the Annexure 'A' to the Comptroller and Auditor General of India (Railways), the following details are required to be sent in a separate statement. (i)

Full particulars of items amounting to more than a lakh each, which are more than 3 years old bringing out clearly the reasons for which the expenditure could not be regularised, should be given. In respect of items which pend regularisation for want of Revised Estimates, completion report, or competent sanction etc. the reasons necessitating the delay in the preparation of the Estimates/Completion Reports, so as to bring out whether the delay in the regularisation is due to delay on the part of Railway Administration or the Railway Board and the reasons for the revision of the Estimates, Completion Reports etc. as well as the authority by whom the final charges (including the nature of such charges) are under verification and from what date may be given.

(ii)

In respect of items relating to earlier than previous year, included in Annexure A(II), the nature of the dispute and the reasons for the allocation not having been finalised for such a long time may be given.

837. Annexure 'B' - Statement of undercharges detected by Accounts and Audit and recovered: This should be compiled in Form F 433(7) Annexure XVII. This will be compiled from the audited details forwarded by the Traffic Audit Section. It should be seen that the total undercharges outstanding at the end of the year tally with the figure arrived at by adding the total amount of undercharges discovered by Accounts or Audit during the year excluding those withdrawn, and the total undercharges outstanding at the end of the previous year and deducting therefrom the sum total of the amounts of undercharges recovered and written off during the year. 838. Annexure 'C' - Statement showing remissions and abandonment of claims to Revenue: This will be compiled in Form F 433(8) Annexure XVIII. This will be compiled from the details relating to the various accounting units forwarded by the local Audit Offices duly audited. The Traffic Audit Section will be requested to furnish the amounts of wharfage and demurrage accrued during the year, if the information is not furnished in the details given by them for the compilation of the above statement. The following points should be borne in mind by the Traffic Audit Section while scrutinising the details relating to their units: (i)

Amounts of inter-railway claims which are written off, being time barred under conference regulations, need not be included in this Annexure.

(ii)

The amounts due from but foregone in the case of types of ticketless travellers indicated in Railway Board's No.28-Appn./44-45 dated 19th May 1949 should be included in this Annexure.

(iii)

The figures of refunds of earnings such as wharfage and demurrage (other than overcharges) should be included in the Annexure.

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(iv)

As soon as the Annexure is available it should be scrutinised to see whether there is any tendency on the part of the Railway Administration to waive recovery of wharfage and demurrage charges without due care or proper justification resulting in heavy remissions of such charges particularly in respect of big firms. If there are any such cases, suitable comments or draft paras should be prepared and intimated to the Comptroller and Auditor General of India(Railway Wing) for mention in the Railway Audit Report.

The following points should be borne in mind while scrutinising the consolidated Annexure: (i)

The figure of 'total earnings' shown in the Annexure tallies with the figure of 'Gross earnings' for the year shown in the statement showing the Gross receipts for March accompanying the Revenue Account Current for March.

(ii)

The figure shown in the column 'Total outstanding wharfage and demurrage' agrees with the one arrived at by adding the figures of demurrage and wharfage accrued during the year with the outstanding at the end of the previous year and deducting therefrom the sum total of the amounts of wharfage and demurrage recovered, waived and refunded during the year.

(iii)

In the case of individual items of remissions and abandonment of claims to revenue amounting to Rs.25,000/- each or more included in the Annexure, complete details bringing out their salient features and containing, inter-alia, the following points, should be given in a self-contained note on each case: (a)

An explanation of the transaction etc.

(b)

A description of the nature and magnitude of the irregularity, loss etc.

(c)

Any extenuating circumstances that may exist.

(d)

Any defects in system which led to the irregularity.

(e)

The remedial or preventive measures adopted.

(f)

The adequacy of those measures.

(g)

Brief particulars of disciplinary action taken or reasons due to which disciplinary action could not be taken, though the circumstances warranted such action; and

(h)

Dates to be given, where necessary. If individual responsibility cannot be fixed in the cases of losses of financial irregularities, the reasons for the same.

(Railway Board's letter No.14.App./52-53 dated 27th May, 1954 forwarded under Director of Railway Audit's endorsement No.RI-69/52 dated 9th June, 1954). (iv)

In the case of remissions of wharfage and demurrage amounting to Rs.25,000 each or more but less than Rs.1,00,000, only the particulars of invoices, stations between which booked and the amount involved will be indicated in the statement appended to the Annexure. As regards cases amounting to Rs.1,00,000 each or more, complete particulars of each of the cases should be given in a brief note to be appended to the report. 258

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While forwarding the final copy of the Annexure to the Comptroller and Auditor General of India(Railway Wing), reference to the previous correspondence in the case of any of the items included in the Annexure, which have already been reported to the Comptroller and Auditor General of India(Railway Wing) separately, should be mentioned in the covering letter. For this purpose, the various Branches/Sections/Divisions should furnish the information to the Headquarters Books and Budget Section while forwarding the audited copies of the details relating to their Units. 839. Annexure 'D': Review of Expenditure on Important Open Line Works and New Constructions: This will be compiled in three parts in the proforma F 433(9) Annexure XIX. The consolidated Annexure will be checked with the audited copies of the Statements received from the various units. The following points should be borne in mind in checking the Annexures: (i)

Part I of the Annexure should include works costing Rs.50 lakhs and over, not only started during the course of the year, but also thrown forward from the earlier years, if budget provision therefor, was not made at any stage during the year.

(ii)

In Part I, brief reasons for undertaking the work without provision should be explained in the remarks column against each work.

(iii)

In Part I the Annexure is split into two parts as below: (Authority: AUB/HC/II/1/186 dt.13.02.92) (a)

Works costing Rs.50 lakhs and over undertaken without budget provision.

(b)

Works costing Rs.50 lakhs and over of previous years on which expenditure was booked during the year without budget provision.

(iv)

Works involving expenditure upto Rupees ten thousand during the year to which the accounts relate need not, however, be included in this Annexure.

(v)

In the remarks column of the Part II of the Annexure, the reasons for not undertaking the work during the year may be given against each work.

(vi)

In Part III of the Annexure, the criterion for inclusion of the work is the physical completion of the work and not the preparation and sanction of its completion report.

(vii)

In the remarks column of the Part III of the Annexure, brief reasons for the variation in the final cost over the original estimate in respect of each of the works should be given.

(Authority: (i) Railway Board's letter No.61-ACI/17/6 Pt. Dated 6th January,1962 received under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.83.RRI-23/61 dated 6.1.1962. (ii) Railway Board's letter No.61-ACI/17/5 Pt.dated 27th March, 1962 received under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.380R.R.I./52/61(W.Rly.) dated 10th April, 1962. (iii) Railway Board's letter No.64-App./47/63-64 dated 27.2.1965).

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840. Annexure 'G' - Block Account, Capital Statement (comprising loan account) Balance Sheet and Profit and Loss Account:(a) Profit and Loss Account: The Profit and Loss Account of the Railway will be compiled in the form prescribed in Para 431 F.1 Annex IV by the Financial Adviser and Chief Accounts Officer's office. The figures for the previous year to be shown in the statement will be taken from the final copy of the Account for the previous year. In respect of the figures relating to the current year, the documents with which they will be verified are indicated below: Sl. Item Particulars of documents etc. No. Debit Side: 1. Working Expenses Sum total of the net expenditure under the revenue grants No. 4 to 11-A (both inclusive but excluding suspense) taken from the Schedule of Revenue Expenditure accompanying the Revenue Account Current for March or alternatively the sum total of balances as on 31st March shown in the Consolidated Revenue Ledger under 'Working Expenses', 'Appropriation to Depreciation Reserve Fund' and 'Appropriation to Pension Fund'.

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2.

3. 4. 5.

6.

Payment Lines

to

Worked Schedule of Transactions under Indian Railways Commercial lines - Payment to worked lines accompanying the Revenue Account Current for March or Consolidated Revenue Ledger for March. Land and Subsidy Schedule accompanying the Revenue Account Current for March. Surveys Schedule of transactions under other miscellaneous Statutory Audit including expenditure accompanying the Revenue Account Pensionary charges of Current for March. Railway Audit Staff Miscellaneous Establishments

7.

Miscellaneous charges

8.

Open Line Revenue

9.

10.

11.

works Schedule of expenditure accompanying the Account Current for March or the Consolidated Revenue Ledger for March. Dividend payable to Statement of Dividend payable to General Revenues General Revenues enclosed to the Account Current, which is audited and sent to the Comptroller and Auditor General of India(Railway Wing) separately. Government Inspections The figures to be shown 'Proforma' in the Profit and Loss Accounts of individual Railways will be advised by the Financial Adviser and Chief Accounts Officer, Northern Railway to the other Railways. The correctness of the figures so advised will be verified by the Principal Director of Audit/Northern Railway and advised to the Principal Directors of Audit of other Railways. (A) Cost of Railway, The figures to be shown 'Proforma' in the Profit and Railway Board, Loss Accounts of individual Railways will be advised to all the Railways by the Railway Board. An audited Miscellaneous copy of the Railway Board's letter conveying the Establishments, under them, Office above information will be forwarded by the of the Principal Comptroller and Auditor General of India(Railway Directors of Wing) to all Principal Directors of Audit. Railway Audit etc. (B) Payment in lieu of Tax on Railway Passenger fares.

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Credit Side: 1.

Gross earnings

2.

Miscellaneous receipts

Consolidated Revenue Ledger or statement showing the gross receipts for March accompanying the Revenue Account Current. Consolidated 'Revenue Ledger' or Schedule showing the details of transactions under the head 'Railway Miscellaneous Receipts for March' accompanying the Account Current for March.

In the case of Dividend payable to General Revenues, the Railway Board will advise the figures of the 'Capital - at Charge' and 'Dividend' in respect of each Railway that have been adopted in the books of the Railway Board, after the close of the accounts for the year. In case there is any difference between the figures of 'Dividend' advised by the Administration and that adopted by the Railway Board, only the figure advised by the Railway Board should be exhibited in the Profit and Loss Account. In the case of cost of Railway Board, Government Inspection etc. if audited copy of the Railway letter advising the figure is not forthcoming from the Comptroller and Auditor General of India(Railway Wing) at the time of finalisation of the statement, it would be sufficient if the Comptroller and Auditor General of India is apprised of the fact while forwarding the final statement incorporating the figure advised by the Railway Board. (b) Block Account:: The Block Account will be compiled in Form F 429. The figures to be shown in column 2 thereof will be the same as those shown in column 11 of the statement relating to the previous year. The figures to be shown in column 3 will be those appearing in the schedules accompanying the Capital Account Current for Open Line and Construction for the month of March. As regards columns 4 to 9, the same should be arrived at from the details furnished by the local Audit Offices in regard to the various accounting units. The figures of transfers without financial adjustments effected during the year to be shown in column 10 will be taken from the statements of transfers without financial adjustments appended to the Account Current for March, with reference to the audited details received from the several Branches/Divisions/Units, as described elsewhere in another connection. Particulars of misclassifications, if any, affecting the Block Account will be furnished in the foot-notes to the Block Account. (c) Capital Statement: The Capital statement will be prepared in two parts in the forms laid down in Para F 431. The figures of 'non-specific debt' as on 31st March of the year appearing on the liabilities side of Part I of the statement will be arrived at as follows: To the figure to end of the previous year will be added the net outlay during the year under the major head 'Construction of Indian Railways - Commercial' (Open Line and New Construction) as appearing in the relevant Schedules of the Capital Account Current for March in respect of Open Line and New Constructions and the amount of transfers without financial adjustments affecting the corresponding heads of account effected in the Capital books of the Railway. The figure of Capital expenditure after purchase appearing on the assets side of the Part I of the statement will be worked out as follows:

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To the figure of Capital expenditure after purchase as on 31st March of the previous year will be added the Capital Outlay during the year under the final heads (both Open Line and New Construction) as shown in the Schedules accompanying the Capital Account Current for March in respect of Open Line and New Construction and the transfers without financial adjustments affecting the corresponding final heads of account effected during the year. From the total thus arrived at, the figure of 'Receipts on Capital Account' for the year will be deducted. The figures as on 31st March of the year in respect of "Stores" "Balances in Manufacture Accounts" and "Miscellaneous Advances" will be taken from the figures appearing in the month of March in the consolidated Capital ledger. The figures as on 31st March of the year in respect of Assets financed from Depreciation Reserve Fund, Development Fund and Open Line works Revenue will be arrived at as follows: To the figure as on 31st March of the previous year will be added the figure appearing in the relevant column viz., Depreciation Reserve Fund, Development Fund, Open Line Works Revenue, against the corresponding head of account in the Block Account and transfers without financial adjustment, if any, affecting that head of account. The total of the figures on 31st March of the year against Assets financed from Depreciation Reserve Fund, Development Fund, and Open Line Works Revenue thus arrived at will be carried over to the liabilities side against the appropriate item. It should be ensured that the grand total of Part II of the statement agrees with the total figure appearing in column of the Block Account against the item 'Total'. (d) Balance Sheet: The Balance Sheet will be compiled in Form F 431(A) Annex III. The figures shown in the statement will be verified with those appearing in the consolidated ledgers, capital and revenue or the final Account Current for the year. It should be ensured that the balances shown in the Balance Sheet agree with those shown in the Debt Head Report for the year, which is certified by this office separately. After finalisation of the Block Account, Capital statements and Balance Sheet, fair copies of the same duly signed by the General Manager will be forwarded by the Financial Adviser and Chief Accounts Officer for recording the audit certificate on the Balance Sheet under the signature of the Principal Director of Audit. After recording the Audit Certificate, copies of the documents will be forwarded to the Railway Board/Comptroller and Auditor General of India(Railway Wing) by the Administration/this office in the usual manner. 841. Annexure H - Statement of Losses etc.: The statement will be compiled in the Form F 433(12) Annex.XXII. The consolidated statement will be checked with the audited details furnished by the various Sections/Divisions/Branches in respect of the corresponding Accounting Unit(s),which will be consolidated by the Headquarters Books and Budget Audit Section for the purpose. In scrutinising the statement, the following points may be taken into account: (i)

Cases of infructuous expenditure should be included in the Annexure.

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(Authority Para 3(a) of Railway Board's letter No.62-App/61-62/62 dated 26th June 1962 received under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.527-RRI-23/62 dated Nil) (ii)

In the case of individual items of losses/infructuous expenditure amounting to Rs.50,000 each or more, complete details bringing out their salient features and the following points should be furnished in respect of each such case: (a)

an explanation of the transaction etc.

(b)

a description of the nature and magnitude of the irregularity/loss etc.

(c)

any extenuating circumstances that may exist;

(d)

any defect in system which led to the irrregularity;

(e)

the remedial or preventive measures adopted;

(f)

the adequacy of those measures;

(g)

brief particulars of disciplinary action taken or reasons for which disciplinary action could not be taken, though the circumstances warranted such action;

(h)

dates to be given where necessary; and

(i)

if individual responsibility cannot be fixed in the case of losses of financial irregularities, the reasons for the same.

(Authority: Railway Board's letter No.14-App/52-53 dated 27th May 1954 forwarding under Director of Audit's endorsement No.RI-69/52 dated 9th June 1954). (iii)

Items of losses etc. written off in a year should be included in the Annexure of that year irrespective of whether or not it has been charged off in the accounts of that year. Cases of losses which have been written off in a year but which have not been charged off in the accounts of that year, for other than genuine reasons should be treated as an error in accounting and included in the Annexure 'J' to the Appropriation Accounts of the same year.

(Authority: Railway Board's letter No. 14-App/55-56 dated 29th December, 1956 addressed to the General Manager and Chief Engineer/Ganga Bridge Project, forwarded under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.RRI-26-56 (Misc.) dated 24th January 1957.) (iv)

The items of losses on account of floods, fire, accidents etc. shown in the above Annexure should be reconciled with those shown in the General Manager's Annual (Narrative) Report for that year so as to ensure that all items of losses required to be included in the statement are correctly exhibited therein.

(Comptroller and Auditor General of India(Railway Wing)'s letter No.337RRI-75/61 dated 26th March, 1962). (v)

While in Annual Report(Narrative) only estimated amounts are shown, the amount of expenditure actually booked in the accounts of the year in the case of losses on account of accidents, breaches etc. are shown in the above annexure.

(vi)

In the case of losses amounting to Rs.25,000/- each or more, due to floods, fire accidents etc. though no details as referred to in item (ii) above are necessary, yet each case has to be mentioned separately in the Annexure. 264

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(Railway Board's letter No.14-App./57-58 dated 28th October, 1958 forwarded under Comptroller and Auditor General of India(Railway's endorsement No.595-RRI-75/58 dated 7th November 1958). (vii)

In the above Annexure, in the details under Grant No.9, Payments of Compensation Claims arising out of major accidents as defined in Railway Accidents (Compensation) Rules, 1950, should also be exhibited as under: "Compensation claims paid in respect of ____________ accident."

(Railway Board's letter No.14-App./55-56/Pt.dated 1st July 1957 received under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.RRI26/56(A) dated 18th July 1957). While forwarding the final copy of the Annexure to the Comptroller and Auditor General of India(Railway Wing), references to the previous correspondence, in the case of any of the items included in the Annexure, which have already been reported to the Comptroller and Auditor General of India(Railway Wing) separately, should be mentioned in the covering letter. For this purpose, the various auditing units should furnish the information to the Books and Budget Headquarters Audit Section while forwarding the audited copies of the details relating to their Unit. 842. Annexure 'I' - Statement of Irregular Re-appropriation: This will be compiled in Form F 433(13). The following re-appropriations are not within the competence of the Railway Administration. (a) Civil Grants: Re-appropriation of funds from one primary unit of appropriation to another in the case of the grant relating to 'Interest on debt and other obligations etc.' (b) Railway Grants: (i)

Re-appropriation of funds from one sub-head to another in Grant No.2 Railways Miscellaneous Expenditure.

(ii)

No re-appropriation is permissible between the 'Voted' and 'Charged' allotments or between the allotments made under one grant and another.

(iii)

Re-appropriation of funds from and to the provision for "Payments to other Railways" and "Suspense" in Grant No.9 and 12.

(iv)

Re-appropriation from and to provision for "Suspense" and "subsidy on grainshops" in Grant No.12.

(v)

Re-appropriation to and from lumpsum provision for works costing not more than Rs.50,000 each.

(vi)

Re-appropriation to and from the provision for track renewals.

(vii)

Re-appropriation to and from the heads "Labour Welfare Works" and "Other Works" in Grant No.16 Open Line Works Revenue.

(viii)

Re-appropriation (a)

to and from "Track Renewals"

(b)

to and from provision for Development Fund expenditure, and

(c)

to and from the provision under detailed heads "Passenger and other Railway Users Amenities" and "Labour Welfare" under Development Fund in Grant 265

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No.16 - Open Line Works - Capital, Depreciation Reserve Fund and Development Fund. Further, in case provision in respect of any of the sub-heads of grants are specified by the Railway Board, while advising the final allotment in respect of each of the grants, re-appropriation to and from the provision for those sub-heads are also not within the powers of the Railway Administration. 843. Annexure 'J' - Statement of Misclassifications and other Mistakes: This will be compiled in the Form F 433(14) Annexure XXIV. The details for inclusion in this Annexure will be gathered from the audited statements relating to the several accounting units received from the local Audit Offices and from the explanation furnished in the final copies of Appropriation Accounts of the several grants. When the Appropriation Accounts of the Grants are accepted in audit pending the finalisation of this Annexure 'J', a watch should be kept over the despatch of suitable amendments to the Appropriation Accounts of the affected grants, after the finalisation of Annexure 'J', so as to give a cross reference to the items in Annexure 'J', wherever necessary. It should be seen that the particulars given for the items included in this Annexure are complete, illuminating and informative. The actual nature of the errors and the reasons for which the same could not be rectified before the close of the year should be brought out. This Annexure will be accompanied by a statement comparing the number of items included in the Annexure 'J' relating to the year with those for the previous year and furnishing the reasons for the variation. 844. Annual Statement of 'Voted' and 'Charged' Expenditure: This statement should be compiled in the following form prescribed in Railway Board's letter No.57-AC-I/17/10 dated 20th August, 1957. (Units of Rupees) Major Figures as Figures as per Appropriation Head appearing in Grants Accounts the Account ------------------------------------------Current Gross Credits or Expenditure recoveries 1. 2. 3. 4. 5.

The figures to be filled in the columns 4 and 5 are from the consolidated statements showing the actuals by sub-heads of grants prepared from the details of actuals forwarded by the Divisions/Units. This will be accompanied by a statement showing the credits or recoveries excluded from the scope of the demand for grants. The details for the purpose will be furnished by the several Accounts Officers to the Financial Adviser and Chief Accounts Officer which would be verified by the local Audit Officers and forwarded to Books and Budget Headquarters Section. The following details should be given as foot-notes in the statement of 'Voted' and 'Charged' Expenditure. (i)

Details of expenditure under the major head 'Other Miscellaneous Expenditure'. 266

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(ii)

Details of expenditure by minor heads of account under 'Capital Outlay on Indian Railways - Commercial Lines'.

(iii)

Details of expenditure relating to motor car advances, advances for the purchase of other conveyances etc. under the major head "P-Loans and Advances by the Central Government - Advances to Central Government servants" relating to Railway Recruitment Board, Secunderabad and the Principal Director of Audit. The following points should be borne which mind in scrutinising the

statement. (1)

The figures relating to 'Charged' expenditure in respect of each of the Major Heads of Account are shown separately.

(2)

While working out the gross figures of suspense under Grant No.9 for exhibition in the above statement, the 'net' figure relating to the suspense head "Demands Payable" will be included under the column "Gross", as the credits relating to the Suspense Head "Demand Payable" are not treated as falling outside the scope of the demand.

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845. Statement showing changes in Form and Classification of Accounts: This will be compiled in the following form: Sl.No.

Reference to authority

Particulars

The details will be verified with reference to: (a)

the Railway Board's letters available in the section files issuing correction slips to Finance Code and Accounts Code.

(b)

Particulars noted in the Register maintained for noting such changes in the Section; and

(c)

the audited material from the various Accounting units received from the local Audit Officers.

The changes introduced by the Railway Administration themselves for purpose of achieving uniformity in all the units of the Railway i.e. changes of local interest only, will be listed out separately and incorporated as a separate section in the above memorandum. After finalisation of the above memorandum, copies will be made out and circulated to all Sections/Units. It should be ensured that whenever such changes in classification are given as reasons for variation, there are per contra explanations under both the affected grants/subheads. While forwarding the final copy to the Comptroller and Auditor General of India(Railway Wing), another statement showing the reference to the Railway Board's letters quoted as authority for the changes incorporated in the final copy and the references to the Comptroller and Auditor General of India's letters communicating the advice of audit in respect of those letters in juxtaposition should be sent. (Comptroller and Auditor General of India(Railway Wing)'s letter No.2132RRI/21/65 dated 16th July 1965). 846. Statements of Stores and Stock Adjustment Account: These will be compiled in the Forms F 433(5) Annexure XI. The statements will be got checked by the Stores Headquarters Audit Section. The instructions contained in Para F 437 to F 439 are to be followed in compilation of the statements. The following points should also be borne in mind while scrutinising the statements:(i)

This will include transactions of the Grainshops, if any.

(ii)

The value of stores issued on sale account should be included in column 15 of the proforma. 268

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(iii)

The value of 'scrap' and 'surplus' stores shown in statement agrees with the corresponding figures shown in the statement of stores transactions compiled in Form S.3001.

(iv)

The percentage of net surplus or deficiency in the Stock Adjustment Account should be worked out with reference to the figure of 'Issued' during the year, as shown in column 14 of Stores Accounts exclusive of issues of stock of grains (Railway Board's letters No. 45-AC.I/136 dated 6th September 1945 and No.30-App/47-48 dated 14.8.1950).

(Note: The column 14 referred to above refers to the column 14 of the then existing proforma before amendment by the Railway Board's letter of 25th April, 1963 referred to earlier). (v)

As losses occurring in Grainshops as a result of Stock Verification and revaluation of Stores are adjusted to the final head direct, such transactions should not pass through Stock Adjustment Account - (Railway Board's letter No.30-App./1945-46 dated 10th March 1947).

(vi)

The figures in the stores account appended to the Appropriation Accounts should agree with the figures in the annual statement of stores transactions.

847. Statement showing Percentage of working expenses to earnings: This will be compiled in accordance with the instructions contained in Para F 434. This statement will be scrutinised by the Books and Budget Headquarters Audit Section. Usually, it is necessary to verify this statement with reference to material furnished by Books Section of Financial Adviser and Chief Accounts Officer's Office for the General Manager's Narrative Report as the appropriation of all the grants would not have been finalised by the time this return is sent. 848. Statement of credits to capital for retired assets: This will be compiled in the following form in terms of the instructions contained in Para F 436. While the figures will be furnished in thousands of rupees in the consolidated statement submitted to the Railway Board, the Divisions/Units will, however, indicate the figures in Rupees and Paise in the statement relating to their units. The consolidated statement will be checked with reference to the audited details received from the various Auditing Sections/Divisions in respect of their portion. 849. (i) Profit and Loss Account of Catering Department; and (ii) Profit and Loss Account of Grainshops: These will be compiled by the Expenditure Section of the Accounts Office and forwarded by that section direct to the Railway Board. These will be scrutinised by the Expenditure Headquarters Audit Section and the final copies thereof will be forwarded direct to the Comptroller and Auditor General of India(Railway Wing) by that Section. 850. Statement of Suspense Balances: This will be compiled in Form 433(5) D. The consolidated statement will be checked by the Books and Budget Headquarters Audit Section with reference to the audited copies of the Statements relating to the various units received from the respective Audit Officers. The following points should be borne in mind while scrutinising the statements: (i)

In the consolidated statement, the figures need be exhibited in thousands of rupees only instead of in units of rupees. This change has been effected commencing from the Appropriation Accounts for 1961-62. 269

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(Para 3(c) of Railway Board's letter No.62-App/62-61-62 dated 26th received under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.527-RRI23/62 dated Nil.). The various units should, however, furnish the figures in units of rupees. (ii)

The net balances under the suspense heads (i.e. the net effect of the credits and debits in respect of each of the Suspense Heads) shown as outstanding on the 31st March of the year should agree with the figures appearing in the General Books of the respective Units.

(iii)

The details of debits and credits relating to the period "earlier than the previous year" are furnished along with the statement.

(iv)

The clearances effected during the current year, are only those effected upto the close of the accounts of July of the current financial year. At the time of certifying the statement, it should be seen that the reconciliation of the balances under the several suspense heads, as appearing in the subsidiary registers with the General Books, has been completed upto the close of July Account.

851. Statement of ex-gratia payments to be shown as foot-notes to the Appropriation Accounts: In this statement only the items of ex-gratia payments exceeding Rs.50,000/- will be included. The consolidated statement will be checked with reference to the audited copies of the statements relating to the various units received from the respective Audit Officers. The details shown in the statement will be verified with reference to the manuscript register maintained by the Sections of the Accounts Office, for this purpose. (Reference: Railway Board's letter No.58-ACI/17/15 dated 16.10.1958 received under Comptroller and Auditor General of India(Railway Wing) endorsement No.571-RRI-53/57 dated 29th October,1958 and Para F 426).

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852. Statement of Defects in Budgeting: This will be compiled in two parts, I and II. The form in which these statements are compiled is furnished below. Sl. No.

Grant/Grants affected

Brief particulars

Amount involved

The amount will be shown in thousands of rupees in the statements. The items for inclusion in these statements will be gathered from the explanations furnished in the final copies of the Appropriation Accounts of the several grants as well as the audited statements received from the local Audit Offices/Sections. When Appropriation Accounts are accepted in Audit, pending the finalisation of this Statement of Defects in Budgeting, a watch should be kept over the despatch of amendments to the Appropriation Accounts of affected grants after statement of Defects in Budgeting is drawn up so as to give a (or cross) reference to this statement in the explanations for variations under the grants. These statements will be accompanied by another proforma comparing the number of items included in these statements relating to the year with those of the previous year, along with reasons for variations. 853. Note on Control over Expenditure: As soon as the Appropriation Accounts of the various grants are finalised, a note in the Control Over Expenditure should be compiled from the material furnished by the various local Audit Officers and forwarded to the Financial Adviser and Chief Accounts Officer for remarks of the Railway Administration. Simultaneously, a copy of the note should be forwarded to the Comptroller and Auditor General of India(Railway Wing). In selecting material for inclusion in the above note, the following instructions should be borne in mind. (1) The report should be submitted to the Comptroller and Auditor General of India in time, so that it may be included in Chapter I of the Railway Audit Report, if considered necessary. In case any delay in the submission of the Report is anticipated, advance copies of the reports may be sent to the Comptroller and Auditor General of India and further comments on the items, if any, may be communicated as soon as they are available. (2) Instances of excesses over voted grants and charged appropriations, instances of inadequate or injudicious surrenders obtaining on individual Railways need not be commented upon in the above report unless they bring out any special feature of budgetary or accounting importance (e.g., cases mentioned in Para 14, 15 and 16 of the Railway Audit Report, 1960) as the Railway Audit Report comments only on the grant as a whole, taking into account the position on all Railways. (3) Cases of Defective Budgeting, misclassifications and comments, which have already been forwarded to the Comptroller and Auditor General of India, along with the Appropriation Accounts of the grants concerned, need not be reproduced in the note on Control Over Expenditure, as the cases already reported are considered by the Comptroller and Auditor General’s Office separately. In short, these notes may be confined to important cases of defective control over expenditure, cases of non-observance of or deviations from 271

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the existing rules or orders, non-preparation or defective preparation of financial review, defective maintenance of accounts registers by the Railway Administration etc. (4) The statements comparing the items of misclassification and defective budgeting with those of the previous year may also be excluded from those notes and sent to the Office of the Comptroller and Auditor General of India separately along with the final copies of Annexure ‘J’ and statement of Defect in Budgeting so that they may be considered before finalising consolidated Annexure ‘J’ and Annexure ‘B’ to Railway Board’s review by the Comptroller and Auditor General’s Office. On receipt of the remarks of the Administration, further observations of this Office on those remarks should be forwarded to the Comptroller and Auditor General of India(Railway Wing) along with a copy of the remarks of the Railway Administration. 854. Audit Certificate: After the finalisation and issue of the final copies of all the accounts of Grants, Annexures and Statements, the Audit Certificate in the Form laid down in Para 8 of the Railway Audit Manual (IVth Edition) will be forwarded to the Comptroller and Auditor General of India(Railway Wing), duly signed by the Principal Director of Audit. ***********

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CHAPTER - IX WORKSHOP AUDIT 901. The Workshop Audit Section at Lallaguda is responsible for the audit of the accounts of Mechanical, Electrical Engineering and Signal and Telecommunications Workshops. The Workshop Audit Section, Lallaguda, also functions as the Workshop Headquarters Audit Section for coordinating workshop audit work, audit of sanctions etc. The Workshop Audit Section, Hubli, is responsible for the audit of the accounts of Mechanical Workshop including electrical portion. Wagon Repair Workshop Audit Section, Guntupalli and Carriage Repair Shop Audit Section, Tirupati, are responsible for the audit of the accounts of Wagon Repair Workshop, Guntupalli and Carriage Repair Shop, Tirupati. The Dy. CAG has nominated this office as ‘Centre of Specialisation’ relating to Workshop activities and the W&S Audit Office/LGD is nominated for the purpose to work as a Special Cell with Sr. Audit Officer / WRS / GTPL as co-ordinating officer. (POO No. 157 of 19.04.2006) 1. To identify specific issues relating to Workshop activities after studying trends. 2. To study the functioning of the Railway in these sectors and identify high-risk areas. 3. To collect and set up Database pertaining to these areas for use by all other offices. 4. Circulation of interesting points noticed to all Railway Audit Offices, who will be using this office as referral point on the issues relating to Workshop activities. The Workshop Audit Sections are also responsible for the following:

¾ The audit of the expenditure incurred by the Mechanical Department for the procurement of rolling stock, machinery and plant and on the maintenance and repair work thereof. ¾ The audit of establishment charges and provident fund accounts of the staff of the Accounts, Mechanical, Electrical and Stores Departments, which are dealt with in the establishment branch of the Workshop Accounts Office. Notes: 1.

Provident Fund Accounts of Gazetted Officers and Cadre Registers are maintained in the Financial Adviser and Chief Accounts Officer’s office.

2.

The Annual Rent Return account of Residential buildings is prepared by the respective Divisional Accounts Officers. Workshop Accounts Officers furnish particulars of recovery of rent to the Divisional Accounts Officers in respect of quarters of the divisions occupied by the staff under their accounts control.

¾ Local inspection of Workshops ¾ Audit of Dead Stock Account, Passes and P.T.Os, Imprest Cash Account, Stamp and Stationery Account of Workshop Accounts Office.

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Audit of items of work falling under Central Audit programme relating to the workshops such as audit of establishment charges, Provident Fund Accounts, audit of General and Subsidiary Books maintained by the Workshop Accounts Officers is conducted in accordance with the instructions applicable to Central Audit. (Paras 3.16.1 to 3.16.4 – Manual of Standing Orders(Audit) and Chapter XVIII - Railway Audit Manual) 902. Audit of Sanctions:: Sanctions dealt within the workshop Audit Section will generally relate to additions and alterations to rolling stock holdings, condemnation of rolling stock, sale/hire of rolling stock etc. The instructions relating to audit of sanctions contained in Chapters on “Establishment Audit” and “Expenditure Audit” will apply mutatis mutandis to the sanctions received in this section. During the audit of sanctions for premature condemnation of carriages and wagons, it should be seen that a statement showing the comparative study of the cost of replacement of the assets and reconditioning the same in terms of paras 240 and 241 of Finance Code Vol. I is invariably submitted with a view to finding out whether the asset is beyond economic repair or can be used after reconditioning or that the services done by the assets are no longer necessary. In respect of sanctions for the sale of goods and coaching stock, it should be seen that the entries in respect of condemnation and replacement in the statements prepared by the Mechanical Department have been checked and certified by the Accounts Officer on the basis of history cards and other relevant records. The sale register maintained by the Workshop Accounts Officer should also be referred to. (Paras 7, 128, 129 and 242 - Railway Audit Manual) 903. Audit of Estimates: The estimates should be scrutnised in accordance with the provisions of paras 1433-W to 1440-W to the extent prescribed in Secret Memorandum of Instructions. It should be seen that provision has been made for the requisite on-cost as laid down in Para 1425-W. In the case of works for other Railways and Government Departments, formal acceptance of the estimate and estimated cost by the Officers ordering the work should be obtained before the work is put in hand (Para 1418-W). (Para 322, 323 - Railway Audit Manual) 904. Audit of Completion Reports: Completion reports should be audited to the extent prescribed in the programme of audit. The correctness of apportionment of charges between Capital, Depreciation Reserve Fund, Revenue etc., the adjustment of freight and other charges, the credits for released materials and the credits for surplus stores on hand should be specially verified. While auditing the completion reports for vehicles constructed for other Government Departments, it should be seen that the capital cost is correctly entered in the register maintained for the purpose of calculating the half yearly interest recoverable from the department concerned. (Para 324 - Railway Audit Manual and Paras 1468-1474-W) 905. Stores Bills and Contractors Bills: Stores bills dealt within the Workshop Accounts Office will generally relate to supplies made directly to the Workshop. The scope of audit of these will be the same as indicated in the chapter on Stores Audit. In regard to the stores bills received in support of the debits raised by other accounting units, it should be seen that the

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debits raised against the Workshops are correct. During the audit of bills for timber purchases, the points mentioned in Para 341 - Railway Audit Manual should be borne in mind. 906. Audit of Incentive Bonus and Piece Work Bills Direct Workers: The programme currently run on the computer for the printing of incentive bonus bills, provides for showing the number of cards, time taken, time saved, total time lost, bonus loss for each ticket number. As the job cards and squad cards continue to be the basic documents even after computerisation, an intermediate printout showing the details of job cards relating to a particular ticket number, time allowed, time taken, time saved, total time allowed, total time taken and total time saved should be obtained and the job cards traced into the statement as far as direct workers are concerned. Thus, this statement should be comprehensive and should contain the details of quantity to pay, set up time, proceeding time and allowed time and audit scrutiny may be restricted merely to the agreement of entries in the statement with the information on the job card, the extent of arithmetical check on the accuracy of calculations being reduced to 50 per cent of the transactions selected for audit. The entries in the job cards relating to the “Allowed Time” (viz., set up time allowed, operation time etc.) should be checked with reference to the scroll sheet maintained in the Production Department. It should be ensured that the scroll sheet itself is not computer printed and if so the particulars should be checked with other relevant records e.g., rate fixers records etc. (Paras 327 & 328 – Railway Audit Manual) and (P.O.O. No.46 dated 30.12.1972). 907. Essentially Indirect Workers (a) As regards indirect workers and supervisors, the section-wise performance statement shows the total time allowed, total time taken, details of jobs and workers in the section. To verify the details of time saved in each section, intermediate print out showing the ticket-wise details of time saved in each section in respect of the unit selected should be obtained and checked with the job card statement and from these the percentage of Bonus payable to Indirect Workers verified. The checking of arithmetical calculations in respect of standard hours and average percentage earned by direct workers may be limited to 50 per cent of the cases selected for audit. As per check of deductions made in the bonus payable to indirect workers on the basis of idle time booked against direct workers under their control even now, the check has to be made with reference to idle time cards. During this check the computer generated idle time statement should also be checked with reference to idle time cards. (b) The audit of incentive bills both for direct and indirect workers should be supplemented by a periodical review of the action taken on error statement s produced on the computer as indicated below:

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™ The reconciliation statement printed in respect of direct workers should be checked once a quarter to see that errors have been correctly rectified particularly in respect of losses.

™ The action taken on the statement of cards printed in the processing of essential indirect workers incentive bills which show cases of essential indirect workers not prima facie employed in the incentive sections should be reviewed every month. ™ Similarly, the statement “GA Hours reconciliation—Details for un-reconciled ticket numbers” should be reviewed and the correctness of action taken thereon should be test checked in audit. (c) The statement of abnormal profits and losses which shows all cases of profits exceeding 50 per cent and all cases of losses should be reviewed for the year to see that remedial action is taken to revise the “allowed time”. (P.O.O. No.46 dated 30.12.1972). 908. Bonus Bills for Maistries: Maistries are eligible for 100 per cent piecework profit on the basis of average percentage of net profit earned by the direct workers supervised by them. The list of maistries attached to each section of a shop and entitled to piecework profit is supplied by the Works Manager to the Accounts Office. This list should be referred to while checking the bills. Other checks laid down in regard to essential indirect workers will apply for the audit of bills of maistries. 909. Bonus Bills for Chargemen: Chargemen are eligible for 80 per cent of the average percentage of net profit earned by the direct workers supervised by them. The list of chargemen entitled to piecework profit is also supplied by the Works Manager to the Accounts Office. The check prescribed for the indirect workers will apply in the case of bonus bills of chargemen also. While checking the bills of Maistries and Chargemen, the following points should also be borne in mind:

¥ That proper adjustment has been made for the idle time of direct workers for lack of work or tools as per the scale laid down. ¥ That proper adjustment has been made in the bills of chargemen for bad castings due to defective supervision as per statement compiled by each section of the shop. ¥ That total attendance agrees with the gate attendance card. ¥ Correctness of hourly rate should also be checked. The following reviews should be conducted annually: ² Cases of abnormal profits above 50 per cent or losses furnished by the Accounts Office to the Works Manager to see that proper investigation is made. ² Cases of rejections in the castings of the foundries.

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² Review of Managerial statements and other statements on the working of the scheme and narrative reports. ² Assessment of the increase in production as a result of incentive scheme and comparison of costs. A test check of the allowed time and revisions made therein and reasons therefor should be carried out in the Works Manager’s office during inspections. A study of allowed time for the same operation in the different Workshops of the Railway may also be undertaken to the extent comparison can be made. During shop inspections, the arrangements in force for punching of cards, custody of cards, segregation of out-turn of incentive workers from that of others, reasons for idle time etc., may be examined. 910. Booking of overtime incentive and non-incentive sections of the workshop: Railway Board has banned the booking of over time in incentive sections of Workshops. They have also instructed the Railway Administration that booking of over time in non-incentive sections should be rigidly controlled and sanctioned under the personal instructions of the Works Manager concerned. It should be seen during the audit of Labour Pay Sheets and bills for over time allowance that no over time is booked in incentive sections, and in other sections, over time is rigidly controlled. 911. Muster Rolls, Labour Pay Sheets and time sheets: In Workshops, where time clocks are in use, gate attendance cards take the place of muster roll. From the gate attendance cards, labour pay sheets showing the name, ticket number and other particulars of each workman and deductions to be made are compiled in respect of the number of hours worked, gross and net wages and over time earned during the month. The total hours shown in the gate attendance card in respect of each workman should agree with those shown in the time sheets which contain the particulars of work orders in which the workman was actually engaged. It should also be seen that all periods of leave with pay and paid holidays are correctly accounted for in the Time Sheets. Investigation into the differences in the amount of wages for each workman as drawn and as distributed among the work orders is not necessary. If the differences continue to be abnormal in any particular shop, it should be seen that complete investigation into the difference is undertaken by the Accounts Officer. Gate Attendance Card should be examined with reference to gate passes, absentee statements, overtime requisitions, on line sheets etc. Particulars of leave recorded in the gate attendance card should be verified with reference to the leave statement submitted to the Accounts Office. Points to be seen during the audit of Labour Pay Sheets as given in the chapter on Establishment Audit equally apply to the audit of Labour Pay Sheets of Workshops also. (Para 326 - Railway Audit Manual) 912. Works Registers and Revenue Allocation Registers: The postings in the Works Registers and Revenue Allocation Registers are made from the out turn statement. While reviewing these registers, the instructions contained in Paras 272 and 273 of Railway Audit Manual should be borne in mind. All aspects should be covered in the yearly review. Purely

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arithmetical checks may be dispensed with except where the Registers are maintained in an unsatisfactory manner. Random test check of arithmetical accuracy should, however, be undertaken. 913. Miscellaneous Advances and Deposit Miscellaneous Registers: The instructions contained in paras 371 and 372 of the Railway Audit Manual should be applied while reviewing these registers. Instructions for maintenance of these suspense registers, their reconciliation with General Books and review of suspense balances are contained in Paras 316 to 322-A, 610-A, 614-A, 615-A and 619-A. 914. Workshop Manufacture Suspense Account : All the transactions relating to the manufacture/repair works undertaken in the Railway Workshops are accounted for initially through the Workshop Manufacture Suspense Account. The debit to the Workshop Manufacture Suspense Account will comprise the wages paid to the Workshop labour, cost of stores utilised on works and freight charges etc. The credit will represent the estimated cost of the out turn of the Workshop during the month. The balance under the Workshop Manufacture Suspense Account will represent the total amount expended on completed jobs for which debits have been raised but are awaiting acceptance and also the amount expanded on works in progress. The balance under Workshop Manufacture Suspense Account as appearing in the General Books is reconciled with the balance in Workshop General Register. The balances under the Workshop Manufacture Suspense Account should be reviewed to see -

E that all the items are correct and have been undertaken after the issue of proper work orders; E that the balance consists of nothing except labour, material and works-on-cost charges expended on unfinished jobs or completed jobs awaiting adjustments; E that there are no credit items; E that in the case of jobs undertaken for outsiders, estimates are prepared taking into account the percentage charges required under rules and deposits have been obtained wherever due; E that adjustments of over-charges and under-charges under on-cost and manufacture are made periodically; The review of the balances under Workshop Manufacture Suspense Account should be linked with the review of the Workshop General Register. (Para 345 - Railway Audit Manual and Chapter XII-W) (P.O.O. No.57 of 31.1.1972). 915. Labour Sub-Ledger: The audit should be conducted with reference to Tally Sheets, Time Sheets and job cards selected. The labour sub-ledger printed by the computer is a summary statement giving for each work order, series of work orders and shop, the costing hours, incentive amount costing amount and overheads. As the check of these statements with Time/Tally sheets will only ensure the correct calculation of time spent under different

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work orders and will not ensure the correct value (in terms of money value) of the time spent, an intermediate print-out, giving the worker-wise (Ticket-wise) details leading to the total labour charges on a particular work order should be obtained from the Administration. The purpose of this, therefore, is to facilitate the linking of the relevant entries with reference to time sheets and checking that the time spent has been correctly evaluated on the ruling average rate, and in addition that the overheads have been correctly levied. However, as the Time/Tally sheets do not give the proceeding time, the check will not be complete and so in the case of incentive sections, the entries in the intermediate printouts should be linked with the Job cards also. The totals for a work order shown in the printout should be traced into the labour tabulations. As the intermediate printout is required to be obtained, selection of the month of audit should be advanced. The statement of details of labour charges gives details of work order in respect of labour charges which are prima facie misclassified in regard to the work order. This statement should be scrutinised in audit every month with a view to examining the reasons for misclassification and the action taken to rectify it. (Chapter V – W and P.O.O. No.46 dated 30.12.1972) 916. Stores Sub-ledgers: The check of the stores vouchers is confined to the month selected for the check of labour sub-ledger. The machine summaries of debits and credits showing the stores charges voucher-wise and shop-wise in respect of each work order are received monthly and this takes the place of stores sub-ledger. The vouchers selected should be traced into the machine summaries. The arithmetical check of valuation of stores vouchers need be made only in 50 per cent of the cases while checking the stores sub-ledger. (Chapter VI-W) 917. Workshop General Register: The extent of check is General Review annually. The Workshop General Register is printed monthly by the comptuer. As this does not show the month of origin of booking but indicates the charges on labour, stores and on cost, work order wise for the month only as against one consolidated document showing the progressive totals from month to month, no general review in regard to the trend of booking of expenditure against the particular work order is possible. As such, the postings in the out-turn statements and Workshop General Register should be mutually agreed and the general review should be done along with review of Workshop Manufacture Suspense Balances. Further, the review of outstanding should be supplemented by a review of the statement called “Monthly Review of Workshop General Register file” and statement called “Review of Credit and Irregular Workshop Manufacture Suspense Balances”. Para 345 - Railway Audit Manual and paras 1201, 1218 to 1220-W and (P.O.O. No.46 dated 30.12.1972 918. On Cost: Items of expenditure incurred in common with more than one shop or all the shops of the Workshop are charged to general on cost. Items of expenditure incurred in any one particular shop are charged to shop on-cost. Shop and General on-cost expenditure is collected under sufficient number of standing work orders separately for labour and materials. A share of these charges is added to the prime cost at a predetermined percentage on direct labour. For this purpose, shop and

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general on-cost budgets are prepared before the start of the financial year, on the basis of the figures of on-cost expenditure actually booked during the 12 months from January to December. The percentages are then worked out in relation to the total direct labour, separately for labour on-cost and stores on-cost. Para 336 - Railway Audit Manual and Chapter VII-W 919. Calculation of On-Cost: It should be seen that only such items of expenditure that cannot be directly charged to any specific job are allocated to on-cost. The actual expenditure on the basis of which the percentages are worked out may be checked with reference to the initial documents like labour pay sheets of indirect labour. The percentage of shop on-cost charges for each shop month by month may also be reviewed and any abnormal fluctuations investigated. While checking the figures of the shop and general on cost charges, the following points should also be looked into top see that:

º the percentages are reviewed regularly and reasons for substantial increase or decrease investigated; º all items of expenditure as detailed in the Mechanical Code have been taken into account;

º the wages of store khalasis engaged in handling, stacking, loading and unloading are allocated to general charges and º credits for packing cases returned to stores are taken under general charges. 920. Proforma On-cost: Percentage charges on account of proforma on-cost are leviable on capital works and on works executed for other Railways, other Government Department, railway employees and private bodies as laid down in Para 1425-W. 921. Distribution of On-cost Charges: After all the sub-ledgers are posted in the Workshop General Register, the works on-cost charges (both labour and material) in respect of each of the work orders will be calculated on the direct labour charges, booked against each work order, at the percentage rates for labour and material in force for each shop and posted in the appropriate column of the register. The total works oncost charged to various work orders at the percentage will be booked as credits under the on-cost work order. The difference between the debits and credits under the on-cost work orders is adjusted against the final heads of account for “over and under charges – on-cost”. The calculation made for the month in arriving at the amount of on-cost to be added to the expenditure on each work order should be checked. The postings in the register maintained by the Accounts Office to collect the actual on-cost charges and the adjustment of the “over and under charges – on-cost” to Abstracts “C” and “D” should also be checked annually. 922. Out-turn Statements: The out-turn statement is prepared in the manner indicated in Para 1211-W. The total debits for the month in respect of each work order under labour, stores and on-cost charges and the grand total are struck in the Workshop General Register and the out-turn statement in Form W-1204 prepared in two parts, Part I comprising items referred to in Para 1207-W and Part II those covered by Para 1210-W except deposit works. Expenditure on deposit works is included in Part I. The Workshop out-turn statement is

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verified with the figures in the General Books. The postings in the out-turn statement of the charges for the month against each work order should be compared with those in the check sheets. In the audit of the out-turn statement, it should be seen that the adjustment of outlay is effected promptly by transfer of the amounts to divisions, other departments and other Railways concerned or by adjustment of the amounts to the relative final heads of accounts as the case may be. The unadjusted items of expenditure should be scrutinised to see that there

L are no minus balances and no outlay on jobs prior to issue of work orders; L are no completed jobs outstanding for more than three months and L outlay on works for which no estimates have been sanctioned is held under objection. The accuracy of the compilation of the Workshop General Register should be checked during the check of this item. Para 346 - Railway Audit Manual 923. Workshop Account Current : An Account Current of all the transactions pertaining to Workshop Manufacture Suspense Account for each Workshop is prepared in Form 1215-W. This account will show the total debits and credits to the Workshop Manufacture Suspense Account under the heads provided in Form W-1215 and the opening and closing balances. Instructions for the posting of the debit and credit sides of the Workshop Account Current are given in Para 1216-W. Journal entries of all Capital and Revenue transactions affecting Workshop Manufacture Suspense Account are prepared monthly from the Account Current for incorporation in the General Books of the Railway in accordance with the instruction contained in Para 1217-W. Workshop Account Current should be audited on the lines indicated in Para 347 of RAM. Besides, the review of the balances under Workshop Manufacture Suspense Account should be linked with the review of the Workshop General Register. While checking the Account Current, in addition to the checks prescribed above, the labour schedule should be subjected to detailed check with reference to labour sub-ledgers for indirect work orders. Para 347 – Railway Audit Manual, Para 1215-W 924. Reconciliation of Monthly Account of Stores with sub-ledgers: The instructions in regard to the reconciliation of the total amount of debits in the stores sub-ledger with the figures shown in the departmental summaries should be strictly observed. It should also be ensured that the pairing of Issued Notes with the priced copies is done. When the stores copy of the voucher is not received with the departmental summaries, the pairing of the Foreman’s copy with the entry in the departmental summary should be done. The total debit and credit to Workshop Manufacture Suspense Account indicated in the Stores Account Current should be reconciled with the total of the respective sub-ledgers. Detailed instructions for the reconciliation are contained in Para 605, 606 and 619.W. It

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should be seen whether the reconciliation is being done properly and differences, if any, adjusted. It should also be checked whether the pairing of issue notes received from the shops with those received with the daily summaries from the Stores Accounts Office is being done. Para 330 and 331 - Railway Audit Manual 925. Transfer Statements or Mema: Transfer statement mema are prepared when cost of stores initially debited to a work order is transferred to the debit of another work order. Such adjustments are summarised in a separate Stores sub-ledger vide Para 623-W. Transfer Statements should be scrutinised during the audit of out-turn statement and Account Current. The following points should be seen during the scrutiny of transfer statements:

R the explanation furnished for the transfer is reasonable; R sanction of the competent authority has been obtained for the work to which the cost of stores is debited; R transfer statement has been signed by a Gazetted Officer; R the stores can really be used on the work to which its cost is transferred; R allocation is correct and R debit and credit are correctly posted under the relevant work orders. Transfer statements of labour charges should also be similarly scrutinised. Para 349 - Railway Audit Manual and Paras 623, 624-W 926. Advice Notes of Returned Stores: It should be seen that the total value of the returned stores as summarised in the credit Stores sub-ledgers agrees with the Monthly Abstract of Receipts received from the Stores Accounts Office. Para 331 - Railway Audit Manual and Para 619-W 927. Accounts, Numericals or otherwise of Stores received into Workshop and charged off to work orders but not actually used thereon : It will suffice if a yearly review is undertaken of the procedure followed in the Workshops for the accounting of charged off and surplus stores lying unutilised in the different shops. It should be seen that stores charged off to work orders do not remain unused for a long time. The reasons for delay in utilisation or in returning the surplus stores should be investigated. Instructions issued by the Railway Board to the Railway Administrations regarding tightening of Accountal Procedure in Workshops vide Railway Board’s letter No.67/M(W)/964/71 dated 3.9.1968 (see Annexure to this chapter) may also be referred to. Para 434 - Railway Audit Manual 928. Accounts of Materials Spare from Work Orders : It should be seen that proper accounts are maintained of materials and old parts and fittings removed from condemned rolling stock and machinery broken up or sold in auction. Old parts and fittings released

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from rolling stock and machinery repaired or reconditioned should also be properly accounted for. Para 434 - Railway Audit Manual 929. Accounts, Custody and Disposal of Scrap Material Instructions contained in Para 316 of the Railway Audit Manual should be followed while auditing these accounts. When scrap is disposed off by sale by the Stores Department directly from the Workshops, the method of accounting and the arrangements for the removal of scrap by the purchasers may be specially examined. 930. Recovery of non-ferrous turnings/borings from shop floor In order to ensure that the railways do not suffer avoidable losses on account of short collection of borings and turnings, detailed instructions have been issued by the Railway Board to the Railways for tightening the arrangements for the collection of non-ferrous turnings and borings, vide their letter No.69/M(W)/964/103 dated 31.1.1970. The Railway Board have also laid down that the Headquarters Office of each railway should obtain from all workshops a quarterly statement showing the percentage of recovery of non-ferrous borings/turnings. In cases where the recovery is low, the matter is required to be promptly investigated by the Railway Administration. It should be seen that the detailed instructions laid down by the Railway Board are followed for the recovery and disposal of non-ferrous turnings and borings. The items referred to in Paras 928 to 931 will be scrutinised yearly during the inspection of shops. 931. Records of Rolling Stock: The Rolling Stock Registers are maintained in the Chief Mechanical Engineer’s Office. This will give the full history of each item of Rolling Stock viz., locos, carriages and wagons. These records are audited in the light of instructions contained in Para 351 of Railway Audit Manual. It should be seen that the records of Rolling Stock furnish all the details required for the preparation of the various statements mentioned in Chapter XV-W. The records should be checked to see that they are up-to-date and show all additions and condemnations and the results of the latest census of the stock. It should also be seen that all sanctions of the Railway Board and the General Manager for condemnations, additions and replacement of Rolling Stock are duly posted in the records of Rolling Stock. Additions and deletions of Goods stock may also be checked with the entries in the “Monthly Statement of Additions and Alterations of Goods Stock” submitted to the Railway Board. 932. Review of Major Works undertaken in Workshops: Review of major works costing Rs. 1 crore should also be undertaken by the Workshop Audit Section. With the expansion of the capacity in the Railway Workshops, the manufacture of wagons, coaches, components for locomotives, cranes and permanent-way materials has also been entrusted to some of the Workshops, in addition to the normal repairs and overhauling work. Such schemes costing over Rs.1 crore each should be reviewed on the lines of review of Major works. Schemes for expansion of workshops for increasing repair and manufacturing capacity should also be reviewed with reference to the anticipated increase in the out-turn and the out-turn actually achieved.. When new machinery is installed on a large scale, it may be

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examined whether the anticipated efficiency has been achieved and the surplus staff reduced from the shop strength. 933. Record of Plant and Equipment: The instructions contained in Para 350 of the Railway Audit Manual should be borne in mind. 934. Work Orders: The instructions contained in Paras 334 and 335 of the Railway Audit Manual should be borne in mind. 935. Proforma Capital and Revenue Accounts of Saloons reserved for the exclusive use of other departments: Instructions contained in Para 355 of Railway Audit Manual should be borne in mind while reviewing these accounts. 936. Recovery of Interest Charges on the capital cost of Postal Vans: Rules contained in Paras 1447-W to 1466-W govern the incidence of the cost of postal vehicles or parts of vehicles provided by the railway to the Postal Department. The Postal Department has to pay interest on the capital cost of the complete vehicles or parts of vehicles, so long as they remain in the exclusive use of the Postal Department and have not been formally surrendered. The capital cost of postal vans for the purpose of recovery of interest will be the all in-cost as detailed in Para 1424-W. The Capital cost of the postal portion of the non-postal vehicles will be worked out in proportion to the floor area of the postal portion. The all-incost of special fittings provided for the exclusive use of the Postal Department will be added to this. It should be seen that the Register of Bills and other records maintained in the Accounts Office contain the upto-date list of all postal vehicles with their capital cost. In case of doubt, the Register of Rolling Stock maintained by the Chief Mechanical Engineer should be referred to check to correctness of the list of postal vehicles appearing in the Workshop Accounts Officer’s records. It should be seen that the bills are correctly issued half-yearly on the basis of capital cost noted in the records. (Correctness of the capital cost is verified during the check of completion report). 937. Review of Statistics of Periodical Overhaul and Cost of Unit Repairs Overhauling: The unit cost statements are compiled by the Workshop Accounts Officer with reference to the expenditure booked against the standing work orders for repairs of various categories of rolling stock and the monthly out-turn statement of locos, carriages and wagons (periodical overhaul and other repairs) prepared by the Chief Workshop Manager. These should be reviewed on the lines indicated in Para 354 of Railway Audit Manual. 938. Saw Mill Account: Separate work orders are issued for booking the cost of each kind of timber. Charges which cannot be directly attributed to any particular kind of timber will be collected under a general work order. The general operating cost thus collected is distributed on the basis of the cubical contents of out-turn of each kind of timber cut in each month. The out-turn statements are prepared separately for each kind of timber and submitted to the Accounts Officer every month. The cubical contents of off-cuts and saw dust will be ascertained either by weighing the same and by converting the weight into cubical contents or by any other means. In any case, a definite ratio between the cubical contents and any other measurements adopted of the off-cuts and saw dust should be fixed. The cubical contents of off-cuts and saw dust will be ascertained separately and furnished to the Accounts Officer

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along with the out-turn statement, so that the same can be valued and credited to the standing Work Order. The debit side of the manufacturing account comprises:

H cost of uncut wood at the end of previous month: H cost of uncut wood drawn during the month; and H cutting charges transferred from the operating account. It is credited with the cost of scantling realised at rates fixed periodically by the Workshop Accounts Office and of off-cuttings, saw dust and uncut wood at close of the month. In checking the Saw Mill Account, it should be seen that:

 the quantity of timber received agrees with the total quantity shown in the issue notes,  quantities of saw/timber issued to the depots agrees with the Advice Note for which credit is received from the Stores Accounts Office,  the percentage of wastage is within the limit prescribed for each type of timber,  the cubical contents of saw dust and off-cuttings have been correctly assessed, and  the under/over charges are worked out every month and adjusted to final head of accounts once every half year. It should also be generally examined whether the machining wastage (1127W) is correctly added to the finished sizes required. Chapter XI-W and Paras 338 and 341 of Railway Audit Manual 939. Foundry Account: The cost of manufacture of spare parts and rolling stock components can be ascertained accurately only if the costing of individual parts is commenced from the stage of rough castings and carried through to that of finished products. For this purpose, detailed foundry accounts are maintained to ascertain the Cost of rough castings. The procedure followed in the foundry is briefly indicated below: Standing Work Order for metal and melting: Suspense Work Orders are operated for recording the expenditure on metal and melting. These charges will include cost of

I metal; I fuel including freight; I limestone and other flux; I repairing cupolas;

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I blast and repairs to blast plant; I repairs to ladle and cupola equipment; I labour for charging the cupolas and for carriage of raw material, and I pouring metal into moulds; Separate standing work orders are operated in the Iron foundry and Brass foundry for booking the above expenditure. The following charges are allocated to Foundry Shop on-cost Work Orders.

U Cost of repairing moulding boxes and tools. U Cost of drying cores and moulds. U Fuel for and repairs to core oven and appliances. U Cost of procuring and mixing moulding sands and binders. U Miscellaneous stores used generally in the Foundry Shop, and U Cost of defective products when it is not charged to individual jobs. For certain class of castings that are extremely liable to defects, defective castings are allocated to the job instead of to on-cost. Credits for non-ferrous borings arising out of machine operations of foundry items are afforded to the brass foundry and not to the machine shop on-cost. Individual work orders are issued for all manufacturing work undertaken in the foundry. The labour charges for moulding and core making are charged to the individual job orders. The total charges recorded under standing work orders for the different metals are distributed over the various jobs undertaken on individual job orders in direct proportion to the weight of the metal booked against each job during the month. A monthly statement of out-turn showing the input and output is posted daily from the daily log and advices of returned stores and submitted to the Accounts Office. The out-turn statement is checked in the Accounts Office with reference to the issue vouchers accounted for therein and completed in respect of total cost of the melt for the month, which will be the total debit for the month. This amount is distributed among the work orders for which castings have been made during the month in proportion to actual out-turn. The foundry accounts should be checked on the lines indicated in Para 342 of the Railway Audit Manual. Chapter X of W and Para 342 of Railway Audit Manual 940. Job Costing : The object of job costing is to compare the cost of articles manufactured in the Workshops

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’ and finding out reasons for variation in cost and ’ with those manufactured on other Railways or with the market price of similar articles. Job costing will also be held in

] Checking employees to see that they yield full service. ] Ensuring that waste is prevented or minimised. ] Utilising the manufacturing cost figures ascertained as a guide for future transactions and for the correct allocation of the expenditure incurred. The essential features of the job costing system is estimating in advance of the time that should be spent and the materials that should be used and the systematic comparison of the results of actual performance with such estimates. The institution of any detailed system of costing is thus contingent upon the initial fixation by suitably trained technical staff of standards of time and of materials for the items of work to be undertaken and for the prompt comparison of the standards thus set with the actual results obtained. In the case of items manufactured in Railway Workshops, the maxima and minima stocks are fixed taking into consideration the length of time required by the Workshops to deal with the requisitions placed by the Stores depots. Upon the depot’s stock of an item dropping to the level of the minimum a requisition in Form S.1437 is prepared in triplicate, (vide Para 1437-S) one copy of which is sent to the Workshop Production Department. No articles may be manufactured in Railway Workshops for stock purposes without a requisition for such articles being placed by the Stores Department and approved by the Chief Workshop Manager. The manufacturing activity is suitably divided into different kinds of job orders, e.g. “Manufacture of loco duplicate”, “Manufacture of carriage and Wagon duplicate”, Manufacture of Miscellaneous Fittings” etc. and each kind of job orders is represented by a control work order. Separate sub-work orders, under each of the control work orders, are issued by the Production Control (in the form of Route Cards) for each individual work to be done and no expenditure should be incurred by the shop until a sub-work order for the work concerned has been received. The series of the control work orders are revised after every half year and all cases of sub-work orders not completed for more than three months after the old series have been revised, will be listed by the Job Costing Section and reported to the Chief Workshop Manager for taking special steps for their completion. Whenever it is decided to take up manufacture of an article, a Process Sheet is prepared by the planner. This is the basic record of manufacture of any article. The Process Sheet will indicate details of the operations required to manufacture the article in their sequence. Against each operation, the operation number, the shop number and the section in which the operation is to be done and the code of the machine will be indicated. After check by the processing section, the Process Sheet is forwarded to the Rate Fixing Section. The rate-fixers fill-in the necessary information regarding preparatory allowance and allowed time.

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The Adrema section embosses the adrema plates from the Process Sheet for subsequent printing of factory forms. The Process Sheet is then filed in the Planning Office. Whenever any change in the process of manufacture is decided, it is noted on the relevant Process Sheet indicating the authority and the reasons for the change. The Production Office of the Workshop and the Accounts Office will use the following forms for the implementation of the costing system: Route Card: This is the authority for the Workshop to undertake any work of manufacture. The Route Card is issued for each economic batch and carry all relevant particulars. When the article is finally finished and sent to the Stores, the Route Card will be sent to the costing section through the Progress Office. Job Cards/Squad Cards: These are the production documents embodying the particulars of different categories of labour booked to the particular work order. On completion of each operation, these are sent to the costing section (through the incentive bonus section). Proceeding Time Statements: This is used when a job taken up during the month is carried forward to the next month. This should be prepared for both jobs in progress as well as jobs that are suspended. Cost Sheet: The cost sheet covers the whole field of record of productive activity. The entire process of a production order in the way of consumption of material and the charging of labour and on-cost is reflected in the cost sheet. The cost of each job is ascertained through the cost sheet which will be opened by the Production Control at the time of issuing production documents like route cards, material requisition etc. The monthly expenditure on labour/materials and on-cost and also the credit received from the Stores Department for the scrap and manufactured articles returned to Stores Department are posted for each month by each shop. As soon as the sub-work order is completed and the completed route cards are received in the costing section, the total expenditure incurred from the commencement of the job to the completion will be totaled up and the unit cost of manufacture worked out. The unit rate should be approved by the Workshop Accounts Officer and posted in the relevant cost cards. Cost of manufacture in respect of each of the workshop manufactured stock item should be worked out in the first instance and the rates thus determined, should be notified in replacement of the existing rates. After this, job costing of each workshop manufactured stock item should, as a rule, be done only once a year, subject to the exceptions specified below:

 Cost of manufacture should be worked out on each and every occasion in respect of such of the workshop manufactured items as are extremely liable to defects.  Cost of manufacture should be worked out every time the method of manufacture is changed. Material Requisition: This is used for drawing material from the Stores and after acknowledgement by the shop foreman is sent to the Stores. After posting the numerical ledger, this is sent to the Accounts Office.

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Debit Transfer Sheets: In case any material drawn for a particular work order is transferred to another work order, a debit transfer sheet is prepared and sent to the Accounts Office for carrying out necessary adjustments. Waster Sheet: This is used for accounting the rejected items due to defect in the raw materials etc. Returned Stores Note: This is used for returning the manufactured materials to Stores. Cost Card (W-9440): This is used for recording the unit cost arrived at on repeated manufacture of the same material. The estimated cost with details of labour and material are also indicated on this card. The cost sheets and the connected documents should be scrutinized to see that:

y Labour charges have been booked by the shops required to perform operations as mentioned in the route cards. y Material charges, wherever necessary, have been booked by the shop processing the first operation. Adjustment for the off-cuts or scrap, wherever utilized, has been made where required. y Labour and material charges have not been booked by shops not mentioned in the route cards. y The quantity passed by the Inspector in the final operation has been acknowledged by the Stores Depot by suitable endorsement on the route card and that necessary credit for the manufactured articles supplied to the Stores Department has been afforded by the Stores Accounts Office.

y There are no discrepancies between the number of articles actually completed and sent to stores and that for which charges have been booked on the sub-work order and that the weight of raw material obtained for the sub-work order is not out of proportion to the weight of the articles sent to Stores. y Abnormal wastages are valued and credit afforded to the work order by debiting the on-cost. y Abnormal rejections of more than 5 per cent to the total number ordered is investigated and remedial measures taken.

y A cost variation register is maintained for recording marked variations and a statement of marked variation is sent to the Chief Workshop Manager. Chapter IX-W and Para 337 of Railway Audit Manual 941. Cost Accounts and Job Cost Sheets: The scope of check is a General Review to see that the correct principles are followed and that the calculations of on-cost is made correctly. A detailed check of the correctness of the cost to the prescribed extent of the cost sheets should be done. The existing instructions should be strictly followed. The prescribed checks provide for the reconciliation of the total debits booked against all the sub-work orders (under a main work order) in the cost sheets during the month with those booked at one place, under the main or control work order in the Workshop General Register – (Financial Accounts). The cost analysis for the Batch Order completed should be reviewed in respect of prescribed percentage of the completed batches every month and the review should be supplemented by

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a review of the material analysis statement and shop-wise/series-wise totals for W.M.S. cards. The comparative statement of “Utilisation of Man-Hours” for the month prepared manually should be scrutinized. Para 337 - Railway Audit Manual and P.O.O. No.46 dated 30.12.1972 942. Review of Contracts: The instructions contained in Paras 606 and 607 of this Manual should be borne in mind during the review of contracts. 943. Review of Implementation of Contracts: The instructions given in Para 608 of this Manual should be followed during the review of implementation of contracts. 944. Sales Abstracts and Sales Register: Railways usually sell unserviceable and obsolete stores and scrap accumulated in Railways which are surplus to their requirement. Occasionally other items of surplus stores are sold if no alternative use could be found for them on Railways. Sales usually are effected in the following ways. 1.

Auction sales: This is the usual method of sale of scrap, empties etc.,

2.

Tender sales,

3.

Direct sales to private parties, such as industrial undertakings, by direct negotiations,

4.

Direct sale of petty stores such as cinder, scrap, sleepers, etc. to ex-Railway employees etc.,

5.

Sales to other Government Railways, and

6.

Sales to other Government Departments.

It should be ensured that no stores which are not obsolete, surplus or scrap are sold to outsiders. "Sales" (Suspense) Registers are maintained in Stores Headquarters Accounts Branch centrally for various categories of sales. The entries are posted from issue notes received along with "Statement 17-Sales" prepared on computer for each depot. Selection for audit should be obtained from the Sales Registers/Sales Statements. During the check of "Sales Abstract", the following points should be seen: 1)

The purchase money is paid in advance if the sale is made to outsiders and where no advance money is paid, the bills are preferred against the parties without delay.

2)

For sales other than auction sales, percentage charges have been correctly levied vide Para 2328 and 2329-S.

3)

Sales have been made under sanction of competent authority (Vide Paras 2304-S to 2312-S).

4)

The sale issue notes have been signed by Accounts Stock Verifier witnessing the sale.

5)

Where direct sales are made to employees etc. procedure laid down in Paras 2308 to 2311-S should be borne in mind, and

6)

Posting is correctly done in Sales Registers.

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The procedure with regard to sales, whether of surplus or other classes of stock should be reviewed periodically. Auctioneer's contract, if any, should be reviewed while reviewing auction sales. All important cases of sales by direct sales, auction sales etc. should be reviewed, the related papers in Controller of Stores' Office gone into and any defects in procedure brought to notice. During local visit to the Depots, the detailed arrangements for tender or auction sales and the method of stacking materials into lots for sale should be reviewed. It should be seen whether materials are removed within the stipulated time and whether penalties and ground rent are enforced wherever necessary. (Para 310 of Railway Audit Manual). 945. Auction Sale Account: Generally obsolete and unserviceable stores and scrap only are sold. Occasionally, however, excess stock of ordinary stores are also sold. The sale should be by public auction/tenders/direct sale. No materials which are not overstocks, surplus, obsolete or scrap may be sold by auction or tender. Before any item of stores can be sold by auction, such action should be recommended by a Survey Committee and sanction of the competent authority obtained for the sale. The auction is conducted under the supervision of the Depot Stores Officer and in the presence of an Accounts representative who should see that the conditions of sale are being observed. The Depot Officer, the Accounts representative and the auctioner's representative should sign the bid statements, sale issue notes and the completion report of auction sale. In addition, the Accounts representative independently submits a statement called "The Register of Auction Sale Material" indicating particulars of the materials sold, bid amount, amount deposited, issue note particulars etc. At the end of each auction, the auctioners will prepare an auction sale account and send it in duplicate through the Depot Officer to the Controller of Stores, who will countersign one copy and send it to the Accounts Officer. The auction sale accounts should be received in Accounts Office within a month from the end of the auction. The auction sale accounts should be generally scrutinised with reference to the completion report submitted by the Depot Officer and the Account Stock Verifier, the bid statement and the Register of Auction Sale Material submitted by the Accounts representative. It should be examined to see that: 1)

the amount realised has been correctly computed according to the bids noted in the completion report/bid statement and that it agrees with the total remittance made,

2)

the amount of auctioner's commission, where deducted is correct,

3)

ground rent has been added to the bid amount when the materials are not removed within the stipulated time,

4)

the arithmetical calculations are correct, and

5)

the account has been countersigned by the Gazetted Officer of the Stores Department.

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Detailed check of the sale issue notes to the extent prescribed in respect of each auction sale should be carried out. The postings of the issue notes in the Sales Register and corresponding credits should also be verified. Auction sale account is also reviewed during local inspections as indicated in Para 438 of Railway Audit Manual. A complete review of all auction sales may be conducted half yearly in Stores Headquarters Audit Section, duly keeping a brief record of auctions reviewed. (Para 2733-S and Para 318 of Railway Audit Manual). 946. Sales of materials other than Auction Sales: All sale sanctions issued by General Manager/Controller of Stores should be received in Stores Headquarters Audit Section. These may be audited as General Manager/Controller of Stores's sanctions to the prescribed percentage. Points, if any, to be investigated at Depot Level may be intimated to Stores Unit Audit Officers concerned. (Authority: Para 2332-S) 947. Accounts, Custody and Disposal of Scrap: A large quantity of materials of different categories which are no longer useful for the purpose for which they were originally procured accumulates on the Railways. These are generally classified as scrap and consist of turnings, borings, cut ends of metals, sweepings or released materials. Sometimes second hand or even new materials are reclassified as scrap when they have become unsuitable for use on the Railways. This may be due to the stores having become obsolete on account of change in the designs or due to modernisation of equipment. Second hand and new materials are classified as scrap on the recommendations of the Survey Committees, duly accepted by the competent authority. Disposal of scrap should be as recommended by the Survey Committees. Cases of reclassification of large quantities and costly items of second hand and new material into scrap should be specially reviewed with reference to the period and the circumstances of their procurement. Detailed schedules of scrap are maintained by the Railway Administration under "Group-98" of the classification of stores. It should be seen that the scrap is accounted for under relevant category and disposed off from time to time without allowing accumulation of huge quantities which may require elaborate and costly stocking arrangements. If scrap is to be disposed off by public auction, arrangements are made for its collection at convenient points for the purpose of such sale. In regard to permanent way scrap, it should be specially seen that they are collected at such points that may require the least expenditure on haulage and handling. (Chapter XXIV-S and Para 316 of Railway Audit Manual) (Paras 944 to 947 included under this Chapter as per CS No. 13 of 27.11.2005)

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Annexure (Para 927) GOVERNMENT OF INDIA Ministry of Railways (Railway Board) New Delhi No.67/M(W)/964/71

Dated 3.9.1968. 12 Bhadra, 1890.

The General Managers All India Railways Sub: Tightening of Accountal procedure in Workshops ……. Enclosed is an extract from the minutes of the meeting of District Controllers of Stores (Vig.) of Zonal Railways held in the Board’s Office on 29.2.1968 and 1.3.1968. 2. The Board have already emphasized from time to time the necessity for proper accountal of non-ferrous materials. It is presumed that Foundry Accounts for non-ferrous materials have already been implemented according to the Mechanical Code. This may please be confirmed. In this connection, you may also please refer to the Board’s letter of even number dated 29.3.1968 dealing with Foundry Accounts. 3. In addition to the Foundry, it is equally important that proper accountal procedure should be in force in all sections/shops where machining, fitting, etc., of non-ferrous components is undertaken or where these are stored. In this connection, you are requested to refer to Para 3320 of the Stores Code. Wherever machining of non-ferrous components is undertaken, the accounting procedure should cater for reconciliation of the weight of rough/machined components and the arising of borings. 4. You are requested to confirm that proper accountal procedures of non-ferrous materials have already been brought into force in the Foundry and other sections/shops where non-ferrous components are machined/stored. Sd/(R.K.RAY) Jr.Director, Mech.Engg.(W)Rly.Bd. DA: As above. Extract of the Minutes of the meeting of the District Controllers of Stores (Vigilance) of all Zonal Railways held in the Board’s office on 29.2.1968 and 1.3.1968.

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Para 12-3. Tightening of Accountal Procedure in Workshops: “ It was pointed out by the District Controller of Stores (Vigilance) of all Railways that accountal of materials in the Workshops particularly of material lying in the shop floor was slack and this contributed in a large measure to thefts and pilferages of materials from Workshops which remain unreported or undetected. Even though Para 3300-S provides for proper accountal of even ‘charged off’ stores in the Workshops, in actual practice, it is observed that such accounts are either not maintained at all or maintained in a half-hearted manner which does not help in proper fixing up of the responsibility. The Workshops no doubt have their own difficulties in enforcing the very rigid system of accounting which may ultimately hamper the manufacture or repair work, but it was felt that proper accountal of at least non-ferrous materials in raw or manufactured condition – both new and released – should be done properly in a ledger (by weight and Nos.) so that at least the pilferage and misappropriation of this costly material can be controlled.”

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CHAPTER - X STORES AUDIT 1001: In Stores Audit, it is required to be seen that departmental regulations governing purchase, receipt, custody, issue, condemnation, sale, stock taking of stores etc. laid down by the Railway Board, are observed correctly. While conducting the audit of Stores Accounts, the instructions contained in Chapter 4 of Section II and Chapter 7, Section III of Manual of Standing Orders(Audit) and Chapter III to XI of Stores Code are generally to be borne in mind. The Stores Audit Branch Offices at Lallaguda, Guntupalli and Tirupati conduct audit of the accounts maintained by their respective Stores Accounts Offices, in accordance with the extent and periodicity prescribed under Stores Audit in the "Secret Memorandum of Instructions - Railway Audit". The Stores Headquarters Section is responsible for audit of the accounts maintained by Financial Adviser and Chief Accounts Officer (Stores) including audit of Stores Bills. The Contract Audit Section is responsible for the audit of all contracts/purchase orders, issued by the Office of the Controller of Stores / SCR / SC, concluded on this Railway. 1002. Review of Contracts: In order to obtain the best value for the money spent, the tender system is considered in all cases as one of the most effective methods of securing competitive rates. Contracts are entered into by the Railway Administration after finalisation of tenders. Following are amongst the different methods of obtaining tenders: i)

By advertisement(i.e. open tenders),

ii)

By direct invitation to a limited number of firms (i.e. limited/bulletin tenders), and

iii)

By invitation to one firm only(i.e. single tender). While reviewing the contracts, it should be seen that:

1.

wide publicity was given to an advertised tender,

2.

reasonable time was allowed for submission of tender,

3.

a tender Committee was properly constituted, associated with finance and the tender was duly examined by the committee,

4.

necessary earnest money/security deposit was obtained,

5.

technical advice wherever necessary was obtained and the financial implications of alternate specifications of delivery period have been examined,

6.

reasons for accepting a rate higher than the lowest have been recorded and are genuine,

7.

acceptance of a tender has been duly communicated to the party within the validity period of offers,

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8.

acceptance of the tender and execution of necessary agreement have been done, by competent authority,

9.

no contract has been entered into with parties who have been blacklisted, and

10.

the quantity ordered is as per genuine requirements with regard to estimate/indents based on past consumption and stock position.

A record of contracts reviewed should be kept in a register similar to that prescribed for works contracts (Expenditure Audit), and the register submitted to Principal Director of Audit quarterly irrespective of results. (Chapter III to VIII of Stores Code, Chapter VI of Finance Code, Para 299 of Railway Audit Manual and Para 606 of Expenditure Audit) 1003. Purchase Orders: A Purchase Order is an order placed by the Controller of Stores on the successful tenderer to supply the required materials to the indentor at specified rates and conditions already accepted. Details of quantity, consignee, date by which delivery must be completed etc. are given in this order. The extent of check is as prescribed in the programme of Audit, in S.M.I.(Railway Audit). The Register of Review of Purchase Orders should be maintained in the proforma given in Annexure XI. The following points are to be seen during the check of Purchase Orders: i)

Continuity in number of the purchase orders is observed.

ii)

Purchase of stores which are beyond the powers of purchase by the Controller of Stores have been included in the purchase list sanctioned by General Manager.

iii)

Purchase orders do not contain any item of stores which should be purchased through the Director General of Supplies and Disposals(DGS&D).

iv)

There is no unreasonable variation in rate adopted from time to time for the purchase of the same kind of material.

v)

The rates and other particulars are in accordance with the agreement in case where a contract for supply of material is in force.

vi)

Local purchase or purchase through single or limited tender has been resorted to in emergencies only and the conditions attaching to such purchases have been fulfilled.

vii)

No splitting up of purchases has been made to avoid the sanction of higher authorities or specified conditions.

viii)

The financial limit prescribed has not been exceeded.

ix)

Necessary earnest money and security deposit, wherever due, have been recovered.

x)

The purchase orders have been placed within the period of validity of the offer and finance concurrence has been obtained, wherever necessary.

xi)

There are no erasures, overwritings or unattested alterations in the purchase order.

xii)

The purchase order has been signed by a Gazetted Officer of the Stores Department.

The instructions regarding purchase policy contained in Chapter III of Indian Railway Code for the Stores Department should also be borne in mind with a view to ensuring that the purchase orders do not infringe the purchase policy.

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(Authority: Para 299 to 307 of Railway Audit Manual). 1004. Review of Implementation of Contracts: A review of implementation of all purchase orders/stores contracts as per the prescribed percentage is to be conducted on completion of delivery of stores. The object of such a review is mainly to know whether the conditions of contract have been honoured by the party without any dispute, delay or defective supplies, entailing extra cost or expenditure to the Railway Administration. A review of implementation of purchase orders relating to stock items shall be conducted by Stores Headquarters section. For this purpose, the list of completed purchase orders according to the prescribed monetary value fixed for review is to be obtained from the Depot Officers concerned (viz., Stores Depots at Mettuguda, Lallaguda, Guntupalli and Tirupathi) by the respective Audit Officers/Sr.Audit Officers(Workshop and Stores) quarterly and forwarded to the Audit Officer/Sr.Audit Officers(Stores Headquarters). The Audit Officer/Sr.Audit Officers(Workshop and Stores) concerned should make permanent standing arrangements with the Depot Officers concerned to obtain the list regularly during the first week of January, April, July and October in respect of purchase orders completed during the previous quarter ending December, March, June and September. These lists should then be forwarded to Audit Officers/Sr.Audit Officers(Stores Headquarters) to reach him before 15th of January, April, July and October. From this list, contracts required for review as per the prescribed percentage should be selected and such contracts reviewed by calling for the files of Financial Adviser and Chief Accounts Officer(Stores)/Controller of Stores. As regards non-stock items, the Divisional Audit Officer/Audit Officer concerned should ascertain from their Accounts counterparts quarterly i.e. in January, April, July and October, the particulars of purchase orders completed during the previous quarter and make necessary selection for review according to the prescribed percentage. For this purpose, Divisional Audit Officer/Audit Officer concerned may make permanent standing arrangements with their Accounts counterparts for supply of lists of completed purchase orders to audit regularly. The review should cover all aspects of the contract and it should be specifically seen whether the objectives for which a contract was entered into were fully achieved. In this connection, the following aspects may also be seen. i)

The material has been supplied as per specifications, duly inspected by the authorised inspecting authority in the agreement. Relaxation in specifications, if any, allowed, has been made after necessary technical concurrence and suitable reduction in rate.

ii)

The stores have been delivered within the stipulated period and extension, if any, granted, has been allowed only after taking into consideration the question of recovery of liquidated damage. Wherever higher rates were accepted on timepreference basis, it should be seen that no extension has been granted without finance concurrence.

iii)

Variations in rates or quantity subsequent to the execution of the contract have been sanctioned by the competent authority.

iv)

Claims for damage, shortage etc. have been preferred in time and pursued properly.

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v)

Extra haulage of material has not occurred due to incorrect information regarding consignee, specifications etc.

vi)

Any Government assistance given to the contractor by way of procurement licence for raw materials etc. has not rendered undue advantage to the supplier.

vii)

Final decision of arbitration cases, if any, should be watched.

The register of "Review of implementation of Contracts" should be maintained in the proforma given in Annexure - II. At the commencement of every quarter i.e. by 10th January, April, July and October, the register of review of implementation of contracts should be submitted to the Principal Director of Audit by the sections concerned indicating, inter alia, arrears in the review, reasons therefor, action taken to clear the same etc. Necessary entries should be made in the Calendar of Returns to watch the implementation of the procedure and time schedule prescribed. (P.O.O.No.93 dated 30.7.1986). The review of implementation of Purchase Orders/Stores Contracts should also include the agreements entered into by the D.G.S.&.D., Railway Board and Central Organisation for Modernisation of Workshops(COFMOW) on behalf of the South Central Railway Administration. 1005. Risk Purchases: In the event of failure on the part of firms to supply the materials asked for in the purchase order within the stipulated periods, fresh purchases through fresh purchase orders are made by the Controller of Stores at the risk and cost of the defaulting firms. In the Accounts Office, the bills relating to risk purchase orders are passed like other bills. As regards booking of expenditure, the cost at the original contract rate is debited to the final head of account and the extra expenditure representing the difference between the revised and the original cost to Miscellaneous Advance(Revenue) as recoverable from the defaulting firms. For watching recovery of these amounts, a manuscript register called "Risk Purchase Register" is maintained in the Accounts Office. These registers should be reviewed half-yearly to ensure that there are no cases outstanding for a long time without recovery. The correctness of the amounts to be recovered from the defaulting firms should be checked in detail with reference to the purchase orders to the extent prescribed of the cases entered in the register. It should also be seen that there is no delay in preferring the claims and that action taken for recovery of the extra expenditure from the defaulting firms is proper and adequate. 1006. Audit of Stores Bills: Purchase of stores for the Railway is arranged by Controller of Stores, either directly or through D.G.S.&.D. Bills for stores purchases for stock by the Controller of Stores are passed by the Financial Adviser and Chief Accounts Officer. The audit of these bills will be conducted by Stores Headquarters Audit Section. Bills for nonstock items chargeable to works pertaining to Revenue, Capital, Development Fund, Depreciation Reserve Fund and Open Line Works(Revenue) are passed by the unit Accounts Offices concerned. Audit of these bills is, therefore, done by the respective unit Audit Offices.

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Selection of Stores Bills in respect of purchases for which payments are made by the Financial Adviser and Chief Accounts Officer is obtained from CO7 Registers. While checking the bills, the following points are to be looked into. 1.

the rate, quantity, terms of delivery and due date of supply agree with the purchase orders and the accepted tenders.

2.

the arithmetical calculations are correct.

3.

the receipt of stores has been duly acknowledged.

4.

due precautions have been taken to guard against passing of a second claim for the same supply.

5.

the items of stores required to be purchased through the agency of the Ministry of Works, Housing and Supply in accordance with Para 801-S and the latest instructions of the Railway Board are not purchased direct, without the sanction of competent authority.

6.

the question of extra expenditure/liquidated damages has been settled in cases of short delivery or delayed delivery. This aspect should be specifically examined in cases where higher rates were accepted for earlier delivery i.e. on time preference clause.

7.

the postings in Purchase Accounts Register have been correctly made.

8.

in case where the suppliers allow a discount in their bills for payment within a specified date/period, it should be seen that the Railway Administration has availed of this concession.

Bills for purchases arranged by D.G.S.&.D. are passed by Pay and Accounts Office and audited by the Principal Director of Audit(C&SM). Selection of these bills for audit is obtained either from the register maintained in the Accounts Office of bills received from the supply department or the statement of bills received from the Pay and Accounts Office. While checking the bills, the following points are to be seen: i)

Debits correctly pertain to the Railway.

ii)

The duplicate copies of bills are supported by the appropriate copy of the Inspection Note containing the Receipt certificate recorded by the consignee.

iii)

In the case of stores for stock, relevant credit items are available in the Purchase Account except for advance payments vide Para 2815-S, and

iv)

The calculation of departmental charges claimed by the Pay and Accounts Office in the bill is correct.

The ISD Bills are sent by the Financial Adviser and Chief Accounts Officer(S) to unit Accounts Officers concerned for adjustment through ATD. These bills are to be listed out from the journal entries every month and audited by the unit Audit Officers, in the same manner as done by Stores Headquarters Audit Section.

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The tracing of audited stores and ISD bills should be done every month in the Monthly Transaction Register, Depot numerical cards (Bin cards) and Purchase Statement made out on the computer, copies of which will be available in the Depot Accounts Offices. For this purpose, the Stores Headquarters Audit Section will send the particulars of bills audited to the units concerned for necessary tracing. During the check of bills, instructions contained in Paras 298 to 307 of Railway Audit Manual, Section III - Chapter 7 of Manual of Standing Orders(Audit) and rules contained in Chapters III to XI of Stores Code are also to be borne in mind. 1007. Port charges and Custom duties: For imported consignments, these charges are paid by the clearing Railways viz., Central, Southern and Eastern. The audit check to be conducted on this Railway is to see that vouchers in support of the debit towards port charges and customs duty pertain to this Railway and that they are correctly allocated. This check will be conducted at the time of check of Journal Vouchers. (Para 313 of Railway Audit Manual). 1008. Receipt Returns, Delivery Notes and Priced Ledgers/Transaction Registers: The detailed instructions regarding revision of Audit procedure consequent on computerisation of sores given in Para 1033 of this manual may also be borne in mind. (Paras 311 to 315 and 317 of Railway Audit Manual). 1009. Monthly Stores Account Current: A Monthly Stores Account Current is prepared by the Stores Accounts Officer(Depot Accounts) and submitted to the Financial Adviser and Chief Accounts Officer every month. The Account Current will show the opening balance, debits/credits during the month and the closing balance of all categories of stores. The statements showing the particulars of the items shown in debit and credit side of this account prepared in Form S.2938 should also be sent to the Financial Adviser and Chief Accounts Officer as an accompaniment to the Monthly Account Current. The Account Current submitted by the various unit Accounts Offices will be consolidated and necessary Journal Vouchers prepared to incorporate these transactions in the General Books. These are checked at Headquarters Audit at the time of check of journal entries. The particulars of the items shown in debit/credit side of the Account Current by the Depot Accounts are compiled from the Machine Summaries viz., debit/credit summaries and other relevant statements prepared as a result of computerisation. Due to elimination of Priced Ledgers on account of computerisation, the reconciliation with Class Ledgers will be done with reference to Class Ledger Summaries prepared on the computer, every month relating to all classes of Stores (groups of stores). (Para 319 of Railway Audit Manual). 1010. Price Lists: The price lists are not intended for pricing of issues but for supplying consuming departments with a list of stores in stock showing their correct description and identifying numbers together with their approximate price. Pricing of issues is done in accordance with Para 2515S.

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The Price Lists should be kept uptodate by the prompt issue of serially numbered correction slips. (Para 208-S and 209-S and Para 323 of Railway Audit Manual). 1011. Price List rates for new stores: Price list rates for new stores purchased, or workshop manufactured, are fixed in accordance with Para 210-S and Para 1535-S respectively. 1012. Price list for scrap: The price lists should include the rates for scrap also. These rates are revised as frequently as necessary by the Controller of Stores, in consultation with the Financial Adviser and Chief Accounts Officer. In audit, the relevant price lists should be reviewed along with the Priced Ledgers. It should be seen that the lists are periodically revised and kept uptodate. 1013. Purchase Accounts Registers: In order to record each purchase transaction as it takes place, Purchase Accounts Registers are maintained in Stores Accounts Office centrally in form S.2809. Separate pages should be allotted for each supplier/firm/contractor, showing the progress of supplies and payments therefor. Receipt notes are received from Depot as an acknowledgement of stores received. These are shown as debit to Capital-Stores Suspense/work, as the case may be, and credit to Purchases - Capital. Receipt notes, after being checked in Accounts Office as per Para 2807-S, are posted on the credit side of Purchase Accounts Register, indicating the particulars of Receipt Note, Inspection Note, Railway Receipt, quantity, rate and value thereof as per Purchase Order. When the bill for the supply of stores is received, the credit thereof available in the Purchase Accounts Register is checked and endorsed on the bill. In case of advance payments to the suppliers before the actual receipt of stores, the amount of such payment is posted as debit in the Purchase Accounts Register. These advance payments are made under special conditions of contract. Correctness of advance payments should be checked vide Para 2815-S also. In other cases it should be seen that no bill is passed for payment by debit to ‘Purchases’ without a corresponding credit in the Purchase Accounts Register. The following points should be seen in the review of Purchase Accounts Register. 1)

The postings in the registers are promptly done and no arrears are accumulated.

2)

Debit balances for 95% and 98% advance payments should be analysed, items which are outstanding for over one year should be examined and the matter taken up specially with the Accounts Office.

3)

In respect of advance payments whether there are cases of undue delay in inspection and accountal of materials by Stores Depots.

4)

The balances under Purchase Accounts should be reconciled with General Books.

5)

While reviewing the Purchase Accounts Register, it should be seen that any differences between the Receipt Order amount and bill amount are promptly adjusted.

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6)

As all freight element in respect of Stores for stock should be debited to Revenue heads, it should be seen that freight element is not booked to Purchase Account. Delay in adjusting the amounts should be taken up.

7)

It should be seen that 5% and 2% bills are properly linked with 95% and 98% bills originally passed in Purchase Accounts Register, and

8)

It should be seen that Purchase Accounts Registers are reviewed periodically as provided in Para 2816.S. (Para 310 of Railway Audit Manual).

1014. Miscellaneous Advances - Capital and Revenue: In terms of Para 2739-S, a register is maintained to post the issue notes chargeable to ‘Miscellaneous Advances - Capital’ and their clearance watched. ‘Miscellaneous advances - Revenue’ is also operated in Stores Accounts to book amounts of excess expenditure on 'Risk Purchases' in terms of Para 2823-S. It should be seen that proper action is being taken to expedite clearance of outstanding items and that no item which could prima facie be debited to final head is debited to ‘Miscellaneous Advances - Capital/Revenue’. Para 381 of Railway Audit Manual may also be seen in this regard. In all these registers, it should be seen that a systematic reconciliation with General Books is carried out. 1015. Security Deposit: A security accompanied by a bond, where necessary, shall, except under general or special orders from the Railway Board, be taken for the due fulfillment of a contract. The security should be furnished in cash, or in any other form, as prescribed in Para 449-S. The Security Deposit Register should be reviewed on the lines indicated in Para 614-AI and Para 371 of Railway Audit Manual. (Paras 448-S, 610-AI Chapter XVIII-AI and 381 of Railway Audit Manual). 1016. Funds Register: The funds register is maintained to record the progress of liabilities incurred against the budget grant under the appropriate heads. The amount of all contracts entered into by the Railway Administration and indents placed on the DGS&D are noted in this register. In addition, total amount of cash purchases made is also entered monthly in the register. The register should be reviewed to see that it is maintained efficiently for the purpose of watching incurrence of liabilities against budget grants. (Para 506-S and Para 307 of Railway Audit Manual). 1017. Stock Verification Reports: A review of stock verification reports closed during the previous half-year should be conducted to the extent prescribed. The selection should be obtained with reference to the Register of Stock Sheets maintained by the Inspector of Stores Accounts in terms of Para 3261-S.

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Stores in the custody of the Depot and other Departmental Officers and subordinates are verified periodically by the Accounts Department to ensure that the materials in stock accord with the description and specification shown in the depot ledgers, the actual balances of such stocks agree with the balances appearing in the books and that excesses or deficiencies noticed during such verification are properly investigated and accounted for. The materials in a Depot, materials at the site of works and stores with imprest holders and tools and plants are to be verified to the extent prescribed. Details of verification are recorded by the Stock Verifier, in a field book. After the actual stock of an item of stores has been ascertained by verification and accepted by the Ward Keeper, the result of verification is posted in the depot ledgers. From the data recorded in the field book, stock verification sheets are prepared in triplicate. The duplicate and triplicate copies of the stock verification sheets are handed over to the subordinate incharge for giving explanation for discrepancies noticed. On receipt of the stock sheets with the explanation of the subordinate incharge through the Controlling Officer, the explanations are scrutinised by the Inspector of Stores Accounts. If the explanations are unsatisfactory, Account Notes are issued by the Stores Accounts Officer to the Divisional Officer concerned. The replies to the Accounts Notes are finally dealt with by the Stock Verification Section in the Stores Accounts Branch. The Audit scrutiny of stock sheets will cover results of verification of all kinds of stock including charged-off stores and permanent way materials in the custody of Engineers. It should be seen that stock verification of Stores with depots and subordinates are conducted periodically as prescribed and stock sheets issued in accordance with Para 3258-S. It is important that stock sheets are dealt with promptly, as delays in finalisation of discrepancies may render the investigation into frauds and other irregularities difficult, due to lapse of time. It should, therefore, be seen, in addition to the points mentioned in Para 317 of Railway Audit Manual that the number of stock verification sheets outstanding finalisation and the monetary value of the discrepancies is not unduly large. During inspection of the depots, it should be seen whether the accuracy of weigh bridges and other weighing machines is periodically tested by the Executive and whether a record is maintained of such tests. (Chapter XXXII-S and Para 327 of Railway Audit Manual). 1018. Stores-in-Transit Register: The Stores-in-Transit Register is maintained for (i) Depot Transfers and (ii) Stores-in-Transit - "Purchases". a) Depot Transfers: When stores issued during a month from a depot are not received in the receiving depot in the same month, such items appearing in the monthly issue summaries of issuing depot are accepted and posted in Depot Transfer Registers. When such materials are

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received later on, the entries in the depot transfer accounts are cleared by debit to stores, such items being brought to account in Transactions Register. Reference to the receipt note will be given against the relevant entry in the register. It should be seen during the review of the register that action has been taken to clear items outstanding for long by preferring claims on the Traffic Department or otherwise. (Para 2746-S) b) Stores-in-transit "Purchases": All stores taken over by the Railway, but not received in the stocking depot are accounted for through Stores in Transit - “Purchases”. All items of credit to ‘Purchases’ which are not posted in the priced ledger will find a place in the Stores-inTransit-"Purchases" Register. The credits to Purchases Account are posted from the receipt notes prepared by the Stores Depot. In cases where inspection and receipt work is centralised, such receipts are granted by the receiving or inspecting officer. The posting of such receipts will appear in the Transaction Register (Priced Ledger) only when the material is received by the depot and accounted for in the Numerical Ledgers. The entry will, therefore, remain in the Stores-inTransit Register until the materials are received in the depot. Outstandings will indicate delay/loss in transit. The Stores in Transit - "Purchases" Register should be reviewed to see that adequate action is taken to clear outstanding items. It should be seen that the Stores-inTransit Register is reconciled with General Books as indicated in Para 2751-S. (Para 2748-S) (Para 320 of Railway Audit Manual). 1019. Stock Adjustment Account Register: Stock Adjustment Account is a subsidiary head of account under the Minor Head 7100-Stores(Suspense) intended for booking debits and credits relating to transactions of the under-mentioned nature, which has to be maintained in the following III parts:I. Results of Stock Verification: P.7181 - Differences between the ledger balances and the ground balances discovered by the Stock Verifier. P.7182 - Differences between the ledger balances and ground balances discovered during Departmental Verification. II. P.7183 - Differences arising out of revaluation of stores due to market fluctuation of purchased stores. P.7184 - Differences arising out of revaluation of stock due to market fluctuation of shop manufactured stores. III. Miscellaneous Items: P.7185 - Differences in book value and value realised in sales. P.7186 - Losses on classification of new stores as second hand/scrap

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P.7187 - Other losses, i.e. breakage, leakage or losses in transfer P.7188 - Rounding off P.7191 - Miscellaneous items. P.7192 - Value brought on books through depot stock sheets pending receipt of voucher. The postings in the account will be made from the various journal slips prepared for the different transactions, surpluses and deficiencies being shown separately. A summary of all the parts is made at the end of every month. The debits and credits to Stock Adjustment Account will be by contra adjustment to stores except in the case of adjustments against the Revenue Abstracts in clearance of half yearly balances. A general review of the Stock Adjustment Account Register should be done. The transactions of the stock adjustment account will come under scrutiny during the audit of stock sheets and Journal Vouchers. During the general review of the register, it should be seen that items are not brought under Stock Adjustment Account without proper investigation. Large items should be carefully scrutinised. Items outstanding in March Accounts should be scrutinised to see whether there are adequate reasons for keeping them under Stock Adjustment Account (Paras 2743 to 2745-S). In terms of Para 2742-S, all items should be cleared finally in six months. Action taken by the Administration in terms of Para 2745-S should be reviewed. (Para 321 of Railway Audit Manual). 1020. Stores Adjustment Sheet: The Stores Adjustment Sheets should be checked with reference to the Transactions Register. The original postings should be verified wherever necessary and the justification of the adjustment scrutinised. It should be seen that important shortages brought to notice during stock verification are fully investigated before the difference in value due to reclassification of stores into Class II or scrap are adjusted. It should be seen that Survey Committee has recommended such reclassification or scrapping and the recommendation has been accepted by competent authority. Papers dealing with the procurement of such materials and circumstances leading to the materials being rendered obsolete or unserviceable should be specially scrutinised, wherever the amount adjusted is heavy. (Paras 2543 and 2548-S & Para 322 of Railway Audit Manual). 1021. Yearly Statement of Stores Transactions: A statement of actual balances of stores on hand at the end of each financial year is prepared by the Railway Administration in Form S3001 and submitted to the Railway Board by the 1st November of the following year. The statement is prepared by the Controller of Stores with the assistance of the Accounts Office. Detailed instructions for preparation of the statement are contained in Chapter XXX of the Stores Code. The statement should be accompanied by three annexures viz., Annexure A, B & C. Annexure A is in the form of a questionnaire which should be answered duly certified by the Financial Adviser and Chief Accounts Officer. Annexure B is a review of balances under material-at-site account for the year. The analysis of Stores balances under this head should be by the following sub-heads.

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1) Completed Works 3) Works not yet started

2) Works in Progress 4) Works not to be done

Annexure C is a statement of balances of 'charged off' imprests comprising the balance at the end of the year with each category of imprest holder. The yearly statement of stores transactions should be checked on the lines indicated in Para 324 of Railway Audit Manual. The balances under material-at-site account should be checked with the Material-at-site balances of various works as appearing in the Works Registers to the end of the year. 1022. Surplus Stores: During the review of Transaction Registers, it is to be ensured that the stores-in-stock has a regular demand and that the balances compare favourably with the rate of consumption. In addition, a review of the list of surplus stores/overstocks submitted by the Depot Officers to the Controller of Stores should be conducted during the local inspection of Stores Depots. All items of surplus stores should be scrutinised to see whether action as prescribed in Chapter XXII of the Stores Code was taken before such stores were declared as surplus. It should be seen whether lists of surplus stores/overstocks are regularly forwarded to other Railways. Action taken to reduce the surplus stores/overstocks by sale to other Railways or otherwise should be examined. A review of the lists of surplus stores received from other Railways may also be made to see whether surplus stores from the other Railways are obtained in preference to purchase of similar stores. Stores Headquarters Section should undertake an yearly review of the progress reports of the disposal of surplus stores/overstocks submitted by the Controller of Stores to the Railway Board. Instructions contained in Paras 324 (4) of Railway Audit Manual and 33 of the Secret Memorandum of Instructions may also be borne in mind. (Chapter XXII-S) 1023. Scrutiny of sanctions to "Quantity" and "Purchase" through Programme Indents placed on the D.G.S&D: In addition to the scrutiny of indents relating to the contracts reviewed, as laid down against item 10 of Para 1002 of this manual, the programme indents for the latest half-year submitted by the Depots for a few classes of stores should be reviewed during the local inspection of stores depots, to see whether the indents have been correctly prepared from the initial records. A review of the indents should also be carried out by a simultaneous review of the stock position in the Stores Depots and the consolidation of the indents in the Office of the Controller of Stores. For this purpose, the Contract Audit Section should select prescribed percentage of the “bulk indents” and after check with reference to the depot indents intimate the particulars of the depot indents to the Stores Audit Sections concerned for scrutiny with reference to the depot records. The particulars of the indents advised by the Contract Audit Section should be noted in the Selection Register and audit completed by the Stores Audit Sections in the same way as other periodical items. (Addl. Deputy Comptroller and Auditor General (Railways)'s letter No.831RAI/8-9/64, dated 21.3.1967).

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1024. Audit of Accounts for Imprest Stores, Engineering Imprest Stores: Permanent Way Inspectors have certain permanent way materials in their custody for the purpose of meeting urgent requirements of maintenance. The cost of such imprest stores is borne on “Capital Suspense”. Priced Ledgers for these stores are maintained by the Stores Accounts Officer. Monthly returns of imprest stores indicating receipts, issues, balances and the quantity recouped by the Stores Depot are received in the Accounts Office through the Permanent Way Stores Depot. In the Accounts Office the quantity issued by the Permanent Way Inspector is posted in the Priced Ledger for the Permanent Way Inspector as issues. The quantity issued by the depot is posted as issue in the main Priced Ledger, under receipt in the Priced Ledger for the Permanent Way Inspector. The value of stores issued by Permanent Way Inspectors are included in the "Stores Summary Issues" against Divisional Engineers concerned. It should be seen in audit that the imprest with every subordinate is fixed as laid down in Para 1409-E and the returns are promptly received, the issues priced, posted in the Priced Ledgers and included in the summaries correctly. The opening balance should be checked with the closing balance of the previous month. NOTE: The permanent way returns are being received by the Divisional Accounts Officers, through the Divisional Engineers and the Audit thereof is done by the Divisional Audit Officers. (Para 290 of Railway Audit Manual & Chapter XIV.E.) 1025. Imprest accounts of other than Engineering Stores: Recoupment schedule of imprest stores (charged off stores) held by Train Examiners, Loco Foremen etc. are received in the Stores Depot which issues the imprest stores. No Issue Notes are prepared in respect of the recoupments of the imprest stores and the recoupment schedule itself serves the purpose of the issue note. The quantity issued by the depot, as indicated in the recoupment schedule, is priced and posted in the Transaction Register and one copy of the recoupment schedule is sent along with the Stores Summary issued to the Departmental Officer. The recoupment schedule should be checked to see that the object of the imprest system viz., control of expenditure on materials used each month in the running repairs of the rolling stock is achieved by ensuring that the stores issued are within the authorised list and quantities. The correctness of the price list number and nomenclature indicated on the recoupment schedule, the pricing of the issues, the postings in the Priced Ledgers and the correctness of the summary should also be checked. The opening balance should be checked with the closing balance of the previous month. It should also be ensured that the recoupment schedules are submitted regularly by all the subordinates and the value of stores issued accounted for promptly. The accounts submitted by imprest holders should be checked, separate selection being obtained for Engineering and other than Engineering. (Chapter XVIII-S) 1026. Review of cases of losses, embezzlement etc.: In terms of Para 9 of Railway Audit Manual, all serious irregularities should be reported to Comptroller and Auditor General of India(Rlys) by Principal Director of Audit as soon as they come to notice. As all cases of losses and embezzlements of cash/stores exceeding Rs.50,000/- in each case are to be reported. Stores Headquarters Audit Section should keep a separate record of these cases and

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forward a copy of the preliminary report (sent by the Railway Administration to Railway Board) to Comptroller and Auditor General of India (Rlys) together with comments, if any, as soon as the report is received of the case. The cases should be individually examined/pursued to see that adequate action is taken by the Railway Administration to investigate and regularise the losses. Copies of the enquiry reports may be called for and reviewed in each case and adequacy of the action taken thereon examined. Final reports may be submitted in each case to Comptroller and Auditor General of India (Rlys). As per Para 1102-F, all cases of losses above Rs.25,000/- are being reported to Railway Board. Stores Headquarters Audit Section should review these cases and satisfy that adequate action is taken thereon by the Railway Administration. Separate lists of these cases may be kept in Stores Headquarters Audit Section. 1027. Survey Committee Reports: Copies of the Survey Committees’ reports are endorsed to Audit(Stores Headquarters) in terms of Para 2228-S. The orders of the Controller of Stores/General Manager on the Survey Committee's recommendations should be treated as Head of Department/General Manager's sanction and audited to the extent prescribed. Copies of Survey Committee's reports should be forwarded to Audit Officer/Sr.Audit Officer ,Workshop and Stores, Lallaguda, Hubli, Guntupalli and Tirupathy regularly. 1028. Inspection of the work of receiving and despatching sections of the Stores Depots: The inspection of the work of the receiving and despatching sections of the Stores Depots should be carried out according to the approved programme. (Para 447 of Railway Audit Manual) 1029. Revision of audit procedure consequent on computerisation of stores: (1). Consequent on computerisation of Stores Accounting, Priced Ledgers are now maintained on the computer. However, in respect of permanent way items, certain Priced Ledgers are continued to be maintained in Stores Accounts Offices e.g., Permanent Way ledger section MFT etc. (2). Railway Stores which were earlier classified under 46 classes, have now been reclassified into 75 major groups and further sub-divided into various sub-groups under each group. Out of the 75 groups, 39 groups are common to all the Railways and the balance of 36 groups are pertaining to South Central Railway. (3). Each Price List number has been codified into an eight digit code of which the first two digits indicate the main group, next two indicate the sub-group, next three digits indicate the Serial Number of the item in the group and the last one a check digit. Further, the following items have also been codified into different numbers. 1. Depots and the wards. 2. Heads of allocation 3. Unit of accountal 4. Consignee code 5. Consignees of Stores etc. (4). As all accountal entries in statements/vouchers will be made only in coded numbers, the Railway Administration has published a "Standard Code Book for

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Computerisation" to facilitate easy reference in accounting and checking which may be referred to while checking returns and vouchers selected for audit. (5). The vouchers are received in the computer room periodically from the Depot Accounts Offices. After a preliminary check of code numbers and other details they are bundled in batches of 50 vouchers, by accounting offices before despatch to EDP for being punched into cards. The data punched on cards are taken into magnetic tapes, after verification on verifying machines as to the correctness of punching. The Stores Accounts staff prepare a control card for each bundle after indicating card code and "Hash Totals" of the quantity for all the vouchers in the bundle. The total under the quantity columns of each batch of vouchers in respective units of accountal is called "Hash Total". The quantity "Hash Total" so developed is to be verified with the total made in computer, to ensure that the vouchers are not omitted in accountal. After the cards are punched and verified, the computer develops the following statements which are described in detail in P.O.O.No.4 of 1970 issued by the Financial Adviser and Chief Accounts Officer, South Central Railway, Secunderabad. a) Prelisting of vouchers: This is the first print-out taken which shows a list of all vouchers (receipt notes, and issue notes, adjustment vouchers) together with quantities and values. The hash totals arrived on computer are checked with those arrived at manually. This is verified by the Accounts staff with the vouchers to see that P.L.Nos. quantities etc. are correctly given in cases where error indications are given by computer. This statement itself indicates the error in hash totals, if any. This statement also helps in ensuring validity check of the vouchers. b) Incorrect statement: This is the list of all vouchers which are rejected by the machine for various reasons, such as P.L.No. not tallied, incorrect unit, balances not available(for issues), no pre-determined rates for workshop manufactured items etc. This will be checked by the staff of Stores Accounts Office and corrections made after reference to vouchers, last month transaction statement, as the case may be. This statement is actually printed after having a match-run with the opening balance tape. c) Invalid items statement: Even after rectifying the above said incorrect entries and putting them in machine, the machine lists out all items rejected by it for reasons such as no balance for issue unmatched, no same unit, no Pre-Determined.rate. Efforts are made to rectify these discrepancies also, but if it is not possible to do so in the same month's account, they are put into next month's accounts after effecting necessary corrections in the depot cards. d) Transactions Registers: This is a monthly record of all issues/receipts under each P.L. in that month only those items in which there are any transactions will be recorded. But in the months of September and March, a complete record of all items including those having no transactions is taken out showing the opening balance, closing balance, rate etc. (6). In addition, various other statements such as debit summaries, credit summaries, sales statements, stock adjustment account P. I, II, III taken out, are given in the above mentioned P.O.O. which enables the Accounts Office to raise debits, adjust credits, prepare Stock Adjustment Account, Account Current etc. (7). However, certain managerial statements (or exception statements) required to be prepared are not yet being printed out and the work is in process on this Railway. Phase II

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of the computerisation and further elimination of the numerical ledger are also still to be implemented finally on this Railway. (8). The instructions detailed below regarding the method of audit of various statements prepared on the computer may be followed. I.

Arithmetical checks will continue to be carried manually out by audit staff and the totals developed on computer should be compared and verified completely.

II.

Any irregularities noticed should be traced to the various stages of the statements and the reasons should be ascertained. If any lacuna is noticed in programming etc. this should be taken up with the E.D.P.M. and his remarks obtained.

III.

To check the completeness of accountal according to the extent of audit prescribed, it may be ensured that all vouchers emanating from the depots are accounted in the computer. Audit staff should obtain all the forwarding mema of all wards for the selected date under which the vouchers are received from the depot to Depot Accounts Office. From these, audit should trace all vouchers entered in the control card and sent by Depot Accounts Office to E.D.P.M. The Depot Accounts Office is keeping a register giving the Lot Number(i.e. each batch of about 50 vouchers) and number of vouchers sent etc. These are sent to E.D.P.M. and his acknowledgement obtained. This ensures that all vouchers are sent to E.D.P.M. including those originating in the Accounts Office. Further, these vouchers are listed in the prelist(edit list) to ensure that all vouchers are taken into consideration for accountal. As this prelisting is not sent to Depot Accounts Unit, the correctness of the vouchers of selected date can be ensured only by tracing into the transaction register and invalid statements. As all the vouchers of the date are traced into transaction register, it can be easily verified that all the vouchers are accounted except those appearing in the invalid statement. It should be ensured that the total number of vouchers in the transaction register plus those in the invalid statement are the same as the number of vouchers for the day as given in the lot register. Each of the vouchers should be further traced into the debit/credit statements etc. prepared on computer to ensure that these are included in the debits/credits raised against the departments for the month.

The hash totals (for quantities) prepared by the Accounts Office on the control card should be checked and correctness verified. As the invalid statement prepared contains all the outstanding vouchers not accounted for, it should be reviewed by audit and old items left unadjusted should be taken up with the Accounts Office. Further, omission/delay to take action on rejected vouchers or abnormal delays in adjusting them should also be taken up. At the end of March accounts, normally there should not be any voucher left unadjusted. To ensure the completeness of the accountal of vouchers, the manual lot totals should be reconciled with the totals developed on the computer. In addition, the continuity of vouchers should be checked with reference to the continuity register manually maintained and continuity statements prepared on the computer. Receipt Return: According to Stores Audit Item No.SA-II, the following items come under this category: a) Returned Stores b) Workshop manufactured items(out-turn)

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c) Imported Stores d) Inter Depot Transfers e) Other receipts a) Returned Stores: All depots are covered in a year according to the extent of check prescribed. Computer takes out monthly depot-wise statement of returned stores(0 '8' statement) showing the voucher-wise details and consignee-wise totals for all returned stores. This also shows group-wise totals of the returned stores. Selection to the extent required can be obtained from these statements and the selected vouchers audited as prescribed in Para 301 and 331 of Railway Audit Manual. These vouchers should also be traced into transactions register and it should be ensured that the rate at which credit is afforded is reasonable, by reviewing the original vouchers. As the voucher is manually priced, it should be specifically seen that the calculated value has been correctly worked out as shown in the statement. b) Workshop out-turn: Statement No.19 taken out in computer shows the list of all workshop manufactured items of receipts. Selected vouchers from this also should be traced into the transactions registers. As the vouchers are priced at pre-determined rates fixed half yearly, it should be seen that revision of prices is done periodically and that the differences between the actual rate and the fixed rate are adjusted periodically to "over/undercharges". c) Imported Stores: The selected vouchers should be checked as per Para 303 of Railway Audit Manual. The vouchers must be traced into transaction register and also the purchase statement (No.12). The correctness of the valuation should be checked with reference to purchase order to ensure that correct percentage charges for customs, freight and port charges are included. d) Depot Transfers: Statements are prepared (No.10 and 11) showing depot transfer receipts/issues. The method of pricing in either case should be checked and also the vouchers traced into Transaction Register. If receipts and issues are not paired off during the month, it should be seen that difference is reflected in Stores-in-Transit Register (Depot Transfer). e) Other Receipts: In addition to the above items which cover majority of receipts in a depot, occasionally there arise certain other categories of vouchers such as temporary receipt notes, fabrication receipt notes and non-stock receipt notes which are also to be covered in audit. Transaction of different dates should be selected for each type of voucher both under 'receipts' and 'issues' category. All vouchers audited should also be traced in the Transaction Register. Delivery Notes: Item SA-III of Stores Audit Programme. This consists of four items as follows and extent of check is as prescribed but different dates being taken for each type of vouchers. All vouchers should be traced into Transaction Register. a) Issue Notes to Revenue and Capital: Vouchers relating to the selected dates should be traced into Debit/Credit summaries. The allocation code of the consignee should be checked in addition to the rate adopted. (Para 315 of Railway Audit Manual) b) Issues to Sales: Statement No.17 shows the voucher-wise details of sales. Vouchers to the extent prescribed may be taken for check from this statement. In respect of sales to outsiders,

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when advance money is not paid, it should be seen that debits are raised without delay after adding percentage charges prescribed in the code. (Para 316 of Railway Audit Manual) c) Items to Workshops: The selected vouchers should be traced into Debit Summaries for allocation check to see that these are debited to the relevant work order correctly. (Para 340 of Railway Audit Manual) d) Issues to inter-depot transfers: The check prescribed for "Depot Transfer Receipts" should be done in this case also. e) Other delivery notes: The transactions of miscellaneous issue vouchers such as fabrication issue notes, loan issue notes, issue notes for return of materials taken on loan etc. may be checked to the extent prescribed. Priced Ledger: Manual posting and maintenance of Priced Ledgers has been dispensed with completely in the Depot Stores Accounts Office and this phase has been completed in respect of all the Depots of this Railway by March 1971. At present numerical ledgers are being maintained by the depots, but these are also in due course being eliminated. In place of these two sets, a single master file has been built up in the computer room on magnetic tape which contains the master code information such as depot, ward, unit, P.L.No. rate etc. This is being continuously up-dated by posting of receipts and issues and striking average rates for adopting this rate for further issues etc. After all the vouchers are put in the computer, excluding those few items included in the "invalid statements", a monthly Transaction Register is taken out which is already described in Para 5(d) above. For opening the record on tape, the items were transferred to computer from manually posted ledgers during various periods from April 1969 to March 1971. All the balances in the P.Ls were reviewed with a view to rectifing irregular balances, if any, before transfer to computer for preparing opening balance statements. The correctness of the carry forward of the opening balance on the cut off date (viz., the date on which the balances in the P.L. on manual system were taken over on computer) should be test-checked and the extent of check may be prescribed by the Principal Director of Audit. Audit of Priced Ledger: The monthly Priced Ledger prepared by the Computer (known as Transaction Statements) contain only items in which there are transactions during the month. Hence, review of Priced Ledgers is done with reference to the periodical statements of the list of balances which contain all the items moved and unmoved. The opening balance should be checked to the prescribed extent every month. The review should be supplemented by a review of the various managerial statements prepared by the computer. Para 317 of Railway Audit Manual prescribes the checks to be conducted in respect of Priced Ledger. 1) To ensure daily and prompt posting of vouchers and work out closing balances daily. This check is to see that vouchers are posted daily in Priced Ledgers. This is not possible of being seen on machine statements because no daily print outs are obtained. By checking the Transaction Register, it can be generally ensured that a month's vouchers are brought into account in the same month and that there are no undue delays in accountal. If delays are found, the reasons should be investigated and the matter taken up with the Railway Administration.

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2) To see that there are no irregular balances in the ledger. Under the system of accountal on computer, no irregular balances will generally arise - such as quantity without value, minus quantity or minus value. Irregular balances due to value without quantity and quantity disproportionate to value may very rarely arise due to rounding off of issue rates which may be seen at the time of review of Transaction Register and taken up with the Administration, if they are heavy and not regularised in the subsequent months. 3) Difference between ledger rate and P.L. rate: During the review of Transaction Register, the last rate shown against each selected item should be compared with the P.L. rate and substantial differences, if any, should be investigated and brought to the notice of the Railway Administration. 4) Book losses, depreciation, etc. of substantial amounts regularly written off:This can be seen during the check of stock adjustment account. 5) Reconciliation between ledger balances and General Books:After elimination of numerical ledgers and maintenance of unified lists on computer, the question of reconciliation with numerical ledgers does not arise. This case is still in the processing stage. Until such time this is completed, it may be ensured that the monthly reconciliation with the general books is continued to be done. It may also be seen that reconciliation procedure provides for: i)

monthly reconciliation of class summaries with departmental summaries,

ii)

reconciliation of debits, credits and balances in the class ledgers(Depot or consolidated, as the case may be) with those appearing in the General Books, and

iii)

reconciliation of the balances in the Priced Ledger with those in the General Books.

The adequacy of the action taken by the Accounts Office or discrepancies in the different sets of figures may also be reviewed. The other checks prescribed in this Para may continue to be done under the computerised accounting. As all the Priced Ledgers are to be reviewed, the units of work may be arranged to be distributed evenly throughout the year. If any ledger like Permanent Way ledgers are still maintained manually, these may be kept in separate units to facilitate audit of manual ledger separately. These manual registers may be continued to be audited as prescribed in the Railway Audit Manual. In respect of ledgers on computerised accounts, they may be reviewed with reference to half yearly listing of the immediate preceding half year and entries in the subsequent Transaction Register in respect of groups/items.

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ANNEXURE – I (Para 1003) The Register of Review of Purchase Orders should be maintained in the following proforma: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Serial Number Purchase Order No. & Date Demand Number & Date # Estimate Sheet Number & Date # Type of Tender Date of Advertisement of Tender # Corrigendum issued if any # If issued, expenses incurred therefore # Last date for submission of Tender Date of Opening the Tender Validity period of Offer # Date of Tender Committee Proceedings Date of Acceptance # Accepting authority # Name of the Supplier Description of Stores a) Quantity b) Consignee 18. Rate accepted: (a) Basic Rate (b) Excise Duty (c) Central / State Sales Tax (d) Freight (e) Insurance (f) Discount, if any (g) Any other item 19. Total Value 20. (a) Whether lowest tender was accepted (b) If not, whether the reasons for rejection of the lowest tender were placed on record, such as (i) Item technically not suitable, (ii) unsolicited offer, (iii) Counter offer made by the firm, and (iv) Any other reasons recorded 21. Whether audit has questioned the discretion exercised by the Competent Authority 22. Whether all the points indicated in Para 267 of Railway Audit Manual have been covered 23. Audit comments 24. Reference to Special Letter / Audit Note issued based on the observations with reference to Sl.Nos. 20 to 22 above 25. Signature of the Officer who has reviewed the Purchase Order. (Note: Items marked (#) are incorporated in the list as per the recommendations of the Railway Audit Norms Committee vide Annexure XVI, Para 5.5.3 at P. 36 & 96)

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ANNEXURE – II (Para 1004 – Sub-Para 5) The Register of ‘Review of implementation of Contracts’ should be maintained in the following proforma. i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. xii. xiii. xiv.

Serial Number Quarter Ending Contract Agreement, Purchase Order Number and Date Name of the contractor / firm Name of work / particulars of material supplied Value of the contract Date of commencement Due date of completion Extension, if any Revised date of completion Actual date of completion AU 6 No., CO 7 No. and date of final Bill Whether the PO is a Z category PO i.e., PO issued against time preference clause In case of Risk Purchase PO, whether penalty has been recovered from the defaulting firm xv. Recovery of Liquidated Damages charges due has been effected or not xvi. Special Features, if any xvii. Reference to objection issued xviii. Remarks of the Reviewing Officer xix. Signature (Note: Items are incorporated in the list as per the recommendations of the Railway Audit Norms Committee vide Annexure XVII, Para 5.5.3 at P. 36 & 97)

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CHAPTER - XI TRAFFIC AUDIT 1101: The Traffic Audit Branch is responsible for the audit of transactions relating to local and foreign traffic which are dealt with in the Traffic Accounts Branch of the Financial Adviser and Chief Accounts Officer's Office and also for conducting station inspections. The Traffic Audit Branch is under the audit control of 3 Audit Officers viz. Audit Officer(Traffic Headquarters), Audit Officer(Traffic Audit Inspection-I) and Audit Officer(Traffic Audit Inspection-II). The Central Audit section and the Inspection section are linked so that there will not be any delay in taking up issues noticed during central audit/inspections and in pursuing the objections. ‘Central Audit Section of THQ is re-organised as THQ-Coaching & THQ Goods. The staff of the Inspection section will be under the control of the Audit Officers/Sr.Audit Officers in charge of the inspections. Central Audit Section (Local) audits sundry earnings and reviews Compensation Claims cases settled by the Railway. The Central Audit Sections, besides conducting the audit of transactions according to the programme of audit, are also responsible for the scrutiny of sanctions, commercial circulars/notifications, Through Rate Circulars (TRCs), Local Rate Advices (LRAs) etc. These should be promptly taken up for scrutiny and filed only after examining all the implications of each circular etc. and, wherever necessary, initiating action for review after obtaining the orders of the Principal Director of Audit. While endorsing copies of these circulars to the inspection section, the specific aspects requiring attention and examination should be brought to their notice. Copies of all orders/notifications etc. should be endorsed to all the Divisional Audit Officers also for their information and guidance and also copies of the printed circulars should be arranged to be supplied to the Divisional Audit Officers through their respective Divisional Commercial Managers. The Divisional Audit Officers carry out the review of cases relating to remission of wharfage and demurrage charges. The inspection section conducts the local inspection of the accounts of the Stations, Out-Agencies, City/Town Booking Agencies, Travel Agents and sidings. The working of the Inspection section is dealt with in Chapter XIV (Inspections). The points to be seen specially during local inspections in respect of certain items are indicated in this chapter. The essential duty of audit in the matter of audit of earnings is to see that: 1.

the person to whom service is rendered pays the proper charges,

2.

the Railway servants receiving the charges account for them correctly,

3.

the rates and fares fixed from time to time by the Railway Administration are within the maxima and minima prescribed by the competent authorities; and

4.

if more than one Railway renders the service, the earnings are properly distributed between the Railways in accordance with the rules and orders relating to such apportionment.

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The check of earnings should be carried out with reference to: (1)

the orders, rules and regulations issued by the President or the Railway Board;

(2)

the Indian Railways Act,1890 and rules etc. made thereunder;

(3)

the Conference Association;and

(4)

the tariffs, rate circulars etc. issued by the Indian Railway Conference Association or by the Railway Administration.

Regulations

framed

by

the

Indian

Railway

Conference

The tariffs should be kept corrected up-to-date. It should be ensured that all correction slips and rate circulars have been received. In respect of irregularities already noticed in internal check by the Accounts Office in the documents coming up for audit, it should be seen whether suitable action has been taken to rectify them. The audit of the accounts of a month is done in the fourth following month with certain exceptions like journal vouchers, certain foreign traffic items, warrants and credit notes etc. The month in which audit is conducted in such cases is indicated in the relevant paragraphs. 1102. Sanctions: Sanctions issued by the President and the Railway Board relating to more than one Railway are audited by the D.A.I.(Railways) and copies forwarded to the Principal Directors of Audit. Rules and modifications issued by the I.R.C.A. and correction slips to tariffs and publications issued by the Association are also audited by the D.A.I.(Railways). Other financial sanctions pertaining to this Railway accorded by the Government of India, Railway Board or the General Manager, sanctions pertaining to local traffic and sanctions issued by the Railway Administration relating to inter-changed traffic between two Railways will be audited by the Central Audit Section. (See Para 7 of Railway Audit Manual). Concessions granted under delegated powers: The General Managers have been delegated with powers to grant concessions in individual cases as also for waiver of detention charges of special coaches etc. This item is covered by "General Manager's sanctions" which are audited cent percent. Justification for the sanction should be examined with reference to Administration's files. In order to assess the total financial effect of such concessions, a separate Register should be maintained to record all General Manager's sanctions relating to Railway receipts, results of audit and the financial implications. An Annual Report indicating the total financial effect of such concessions for the financial year should be sent to Coordination section by the 30th April, for considering possible comment in the Audit Report. Detailed instructions for the audit of sanctions contained in Para 602 of Chapter VI of this manual should be followed. (See Paras 6, 132 and 133 of Railway Audit Manual).

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1103. Station and Out-Agency accounts: The extent of check of station accounts to be done is laid down in Para 9 of the Secret Memorandum of Instructions. Stations, Out-Agencies and City-Town Booking Offices are classified as very big, major or minor based on the earnings. As a very big/major station may become a major/minor station or vice-versa due to decrease/increase in traffic, an annual review is made by the Accounts Office and corrections to the list of stations are carried out. This list should be referred to in March every year and list of stations maintained for selection kept up-to-date. All the stations on the Railway are divided into number of units according to the prescribed percentages and out of this, one unit from each category is selected for audit. In addition, one or two stations are selected and audited to maintain an element of surprise. The selected stations are noted by the Auditors/Sr.Auditors of the Traffic Audit Branch who will call for the relevant documents relating to the accounts of the stations selected for audit and complete the audit. (See Paras 165 and 175 of Railway Audit Manual). 1104. Coaching Accounts: Passenger Traffic: In respect of stations selected for audit, the local and foreign passenger classifications for the month of audit and that for the previous month should be obtained. Concession vouchers, collected tickets and non-issued tickets should also be obtained. In the case of classification relating to Blank Paper Tickets, the Accounts as well as collected foils of the Blank Paper Tickets should be obtained. The passenger classification should be checked in accordance with the instructions contained in Para 2109 A-II et seq. The correctness of the fare charged should also be verified in audit. In the case of tickets charged at reduced rates, the correctness thereof should be verified with reference to the supporting documents viz., P.T.Os., concession order etc. accompanying the passenger classification, though the collected P.T.Os. and concession orders need not be checked. It should be seen that the tickets accounted for in the passenger classification relate to the series supplied to the station. The collected tickets may be examined to see, among other points, whether the blank paper tickets have been correctly accounted for by the issuing stations and the highest number of collected tickets is not higher than the closing number for the month as indicated in the passenger classification. The audit of non-issued tickets should be conducted in accordance with Paras 2108-A.II. The passenger classification of the selected stations relating to military warrants should also be checked both for local and foreign traffic, though the warrants themselves need not be checked in audit. The entries in the classification should also be compared with those in the collected soldier tickets and it should be seen that the ticket numbers accounted for in the classification are in serial order and the commencing number tallies with the closing number in the previous month's classification. The totals of the classification should be checked and traced into the General Summary and the latter into the Balance Sheet.

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The audit of passenger classification includes the scrutiny of season tickets and concession vouchers. Season tickets are accounted for and dealt with like other printed tickets or blank tickets. The audit of season tickets should be done in the same manner as audit of printed tickets or blank paper tickets. 1105. Concession Vouchers: Concession vouchers should be scrutinised in accordance with the instructions contained in Para 2114-A.II. 1106. Tracing of errors noticed in the check of passenger classification in "incorrect statements" and review of incorrect statements: While checking the passenger classification (printed series) the errors noticed should be traced into the incorrect statement to verify the action taken by Accounts Office. In addition, the incorrect statements as a whole of the stations selected for audit should be reviewed and the adequacy of the action taken by the Accounts Office ensured. (CAG's letter No.1941-160-RAI/8-6/71 dated 10.6.1971) Undercharges already noticed by Accounts Office and marked on the passenger classification (other than printed series) of the stations selected for audit should be traced in the Register of Exempted Debits/Error Sheets, as the case may be, to ensure that necessary action has actually been taken by the Accounts Office. 1107. Audit of collected tickets and Ticket Collector's Reports: In addition to check of the highest number of collected tickets between pairs of stations with the passenger classifications of stations selected for audit, a concurrent check of collected tickets and Ticket Collector's report of station selected out of the stations taken up for audit should also be done. While checking the collected tickets at Headquarters (and during local inspections), it should be seen that: (1)

tickets are invariably nipped,

(2)

the tickets collected are in all respects genuine and are otherwise in order,

(3)

the dates impressed on the tickets are clear and that there is no unauthorised defacing of the tickets in any manner whatsoever. In addition, the checks prescribed in Para 2105-AII should also be carried out, and

(4)

at bigger stations especially at Headquarters of the Railway the percentage of tickets missing from collection is kept to the minimum, say 7 or 8%.

At the time of review of the working of the Accounts Office, the various registers maintained in the Accounts Office in connection with the internal check of collected tickets should be reviewed to ensure that the checks prescribed are correctly exercised by them. A review of the Ticket Collectors’ reports of selected stations for a month should be conducted with a view to seeing in particular that the percentage of missing tickets is kept at a minimum, say 7 or 8%. 1108. Return of Tourist Agents: The selected returns should be audited monthly in the same manner as passenger classification verifying inter-alia the correctness of the rates charged,

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the refunds allowed on unused tickets and the commission claimed. In case a percentage of the fare is retained in arranging refund on a ticket, the percentage so retained is shared in accordance with the agreement. It should also be verified that the net amount due to the Railway has been correctly worked out and received by the Railway Administration. The following points should be seen: 1.

The security deposits paid by the tourist agents are adequate with reference to sales returns.

2.

There is no delay in submission of returns and remittances by the tourist agents. The travel agents are required to render their accounts bi-monthly and they should remit the sale proceeds and submit their sales statements within five working days after the expiry of each fortnight.

(Railway Board's letter No.TC/II/2025/65 dated 19.7.1967 and 22.4.1970) 3.

There are no outstandings of sale proceeds of Railway tickets lying against the tourists for unduly long period.

4.

The stock registers are maintained by the Accounts Office and kept up-to-date and that large stock of tickets is not lying with the tourist agents for unduly long periods, and

5.

In respect of transactions of foreign railways, the continuity of all the tickets issued should be checked with reference to the supply statements. (Paras 2141-2142 A-II).

1109. Excess Fare Returns: The excess fare returns of the stations selected for audit should be checked in accordance with the provisions of Paras 2150-2158 A.II. The series of tickets used should be compared with the excess fare ticket books issued to the stations, as appearing in the registers maintained in the Accounts Office. The collected excess fare tickets should be compared with the Accounts Office copies to ensure that there is no manipulation of figures of charges collected. For this purpose, the excess fare tickets issued to other railways and collected at the destinations are required to be returned by the Accounts Office of the destination railway to the Accounts Office of the forwarding railway. It should be seen that double sided carbon sheets have been used in the preparation of the excess fare tickets. The total of the excess fare returns should be checked and traced into the balance sheet of the station. 1110.Luggage, Horse, Carriage and Dog Returns: The rules relating to the booking of luggage, horse, carriages etc. are published in the I.R.C.A. coaching tariff. The returns should be audited with reference to the provisions of Paras 2202-2207 A II and the total of the returns should be checked and traced into the balance sheet of the station. 1111. Demurrage and wharfage of parcels and left luggage: The audit of the returns submitted by the stations should be conducted in accordance with the provisions of Paras 2208-2212 A.II and the amount accounted for in the returns checked with the amount taken to debit in the balance sheet of the stations.

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1112. Check of coaching traffic - Non-Government Railways: The check of coaching traffic booked from this Railway to non-Government Railways and vice versa, one unit (both outward and inward traffic) is done every month to the prescribed extent. The checks prescribed for audit of passenger classification (Government Railways), parcels etc. should be applied in the cases of traffic relating to non-Government Railways also. In addition, the correctness of apportionment of earnings between the Government and nonGovernment Railways made through Division Sheets should be checked in audit. 1113. Special Trains, Tourist Cars etc.: All cases relating to running of special trains, tourist cars etc. the charges for which are collected and accounted for in the passenger classification of the stations selected for monthly audit, should be checked. In addition, cases noted in the register of special trains etc. maintained in the Financial Adviser and Chief Accounts Officer(T)'s office, are selected for check to the prescribed extent every month. Settlements in respect of payments towards Special trains is being done at stations itself since February 2005. Hence this item of Audit is now transferred to Local Audit Inspections Sections. The following points should be seen. 1.

That necessary deposit has been collected.

2.

Charges for special trains, tourist cars etc. should be checked in accordance with the rules given in the Coaching Tariff and with the help of the tour programme issued by the Chief Operating Manager and the composition statement.

3.

That the charges as shown in the special ticket and collected by the station, from where special train starts are accounted for in the passenger classification and balance sheet of the station to ensure correct accountal of the charges, and

4.

That the refund has been correctly made.

1114. (a) Parcel Traffic ('Paid'): The accountal of paid' parcels traffic is on 'forwarded basis'. According to this procedure, the forwarding stations prepare paid parcel way bills in four foils viz., record, receipt, guard and Accounts Office. The transactions thereof are accounted for in a separate cash book in two foils, the second being written by carbon process. The original is retained by the station for record, and the carbon copy of the paid parcels cash book supported by the connected Accounts foils of the paid parcel way bills is submitted to the Accounts Office at the end of the month with the following certificates by the Station Master/Chief Parcel Clerk: a.

that the total amounts (paid) for the month as shown in the cash book have been taken to debit in the balance sheet under the head “outward paid parcels (local)/(foreign)” and

b.

that the parcel way bills issued during the month fall within the machine numbers specified in the certificate.

In order to guard against the possibility of frauds such as use of privately printed Parcel Way bill forms or collection of higher freight than that shown in the Accounts

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Office foils of Parcel Way bills and accounted for in the parcel paid cash book, the following checks are exercised by Accounts Office. A register is maintained in the Accounts Office to record the supply of machine numbers of paid parcel way bill books to each station, as advised by the supplying office and ensure that the parcel way bill books are brought into use in consecutive order by the stations and that all the foils are accounted for. In addition, a master list of all parcel way bill books (local and foreign) supplied to all stations on the Railway is prepared by the Accounts Office and supplied to the Travelling Inspector of Accounts. During their inspection, the Travelling Inspectors of Accounts make use of this list to check the machine numbers of Parcel Way Bills for local traffic entered in the delivery books of the stations. The Travelling Inspectors of Accounts also verify that the books issued to the stations are correctly taken into account. The guard foils of the Parcel Way Bills received from destination stations are checked to the prescribed extent by the Accounts Office with the cash book copy forwarded by the Booking station. Out-Agencies/City Booking Agencies and worked line stations, however, submit abstracts for Inward Paid Parcels traffic for both local and foreign traffic supported by Guard's foils of the Parcel Way Bills. The Out-Agency/City Booking Agency Bills and share of the worked lines are checked with reference to these abstracts. The Out-Agency/City Booking Agency Bills and share of worked lines for traffic originating from the OutAgency/City Booking Agency or worked line stations are, however, worked out on the basis of the information available in the Paid Parcel Cash Book. 1115. Audit of Parcel Way Bills: While auditing the parcel traffic, the following points should be seen: Local Traffic: (A) Forwarded 'Paid': i)

The copy of the parcels cash book received in Accounts Office from the station is in the prescribed form and is a carbon copy.

ii)

All the accounts foils of the 'paid' Parcel Way Bills mentioned in the copy of the cash book have actually been received.

iii)

The Parcel Way Bills accounted for are in consecutive order and are in continuation of the closing No. of the Parcel Way Bills issued in previous month.

iv)

The cancelled way bills are entered in the cash book and all the three foils other than the record foil are received along with the cash book.

v)

Necessary certificate has been furnished in the summary page of the cash book that the amount shown in the cash book has been taken to the debit side in the balance sheet for the month under the relevant head and no parcel way bills other than those included in the cash book have been issued during the month at the station for this traffic.

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vi)

A 'nil' return is received where there is no transaction of outward paid traffic during a month and the last number of the parcel way bill issued previously is not included in the cash book.

vii)

The entries in the master list of paid parcel way bill books supplied to stations, maintained by the Accounts Office, should be referred to in respect of stations selected for audit to see whether the number of parcel way bills received and checked tally with those shown in the master list of parcel way bill books as supplied to the stations concerned, and

viii)

The selected parcel way bills should be audited in accordance with the provisions of Para 2215-A II and traced into the cash book of the station. The total of the cash book for the month should be checked and compared with the amount shown in the balance sheet of the station for the month against the item "parcels traffic outward paid(local/foreign)".

The guard foils of the selected destination stations viz., Very Big, Major and Minor, should be compared with the cash book entries of all the stations selected for normal monthly audit. In the case of traffic pertaining to motor cars, carriages etc. the 'paid' traffic will be checked on the inward basis according to Para 2215-AII et.seq., and traced into received abstracts and summaries. 1116. Register of unaccounted for parcel way bills: The register maintained in the Accounts Office should be reviewed to see that there are no old items and prompt and adequate steps are taken by the Accounts Office to clear the items. (Para 2225 A II) 1117. Audit of Parcel Way Bills - Foreign Traffic - (Government Railways): (a) Forwarded outward paid: The checks detailed for the local outward paid parcel way bills in Para 1115(A) will apply mutatis mutandis to foreign outward paid parcel way bills also. It should also be seen that: i)

The code initials of the railway in which the destination station is situated are indicated on the way bills to facilitate postings being made easily in the foreign paid parcels cash book, and

ii)

The new cash book provides separate columns to indicate the freight on paid parcels booked to each terminating Government Railway and non-Government Railway.

Comparison of guard foils of selected destination stations with the entries in the cash book of all the stations selected for normal monthly audit should be made. In case no guard foils in respect of the stations selected for audit have been received in the Accounts Office, selected guard foils actually received in the Accounts Office should be compared with the corresponding cash book. 1118. Comparison of forwarded abstracts received from foreign railways with the received abstracts and preparation of lists of unaccounted for parcel way bills: The forwarded abstracts received from all the Railways(Government) are compared with the

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received abstracts of the stations included in the unit selected and unaccounted for items traced into the list prepared by the Accounts Office. Omissions, if any, should be pointed out for rectification. This comparison is done in the fifth following month. 1119. Foreign Traffic (Non-Government Railways): Traffic booked from this Railway to non-Government Railways and vice-versa is checked to the extent prescribed. The following procedure should be followed in respect of check of parcel way bills booked from this Railway to non-Government Railways and vice-versa. i.

Traffic booked from this Railway to non-Government Railway (forwarded traffic): The parcel way bills accounted for in the division sheets received from the selected non-Government Railway should be checked and traced into the division sheets, and

ii.

Traffic booked from non-Government Railway to this Railway (received traffic): In respect of the selected non-Government Railway, the parcel way bills accounted for in the division sheets prepared by this Railway and sent to the non-Government Railway should be checked and traced into the division sheets. As the parcel way bills are sent to the non-Government Railways along with the division sheets in the month of accountal itself, the way bills in respect of the non-Government Railway selected should be checked concurrently.

1120. Comparison of outward and inward traffic returns and review of lists of unaccounted for parcel way bills (Non-Government Railways): The outward abstracts in respect of the stations selected for audit during the month should be compared with the Inward Division Sheets received from the non-Government Railways and the items missing should be traced into the list of unaccounted for way bills. Audit is done in the fifth following month. 1121. Tracing of undercharges noticed on parcel way bills into Register of Exempted Debits/Error Sheets: Undercharges already noticed by Accounts Office and marked in the parcel way bills (local and foreign) selected for audit should be traced into the Register of Exempted Debits/Error Sheets, as the case may be, to ensure that necessary action has actually been taken. 1122. Verification of parcel way bill books in use in stations: During local inspection of the station accounts, the Audit Inspection Party should verify the machine numbers of books supplied to the station with those actually in use. 1123. Telegraph Traffic Receipts: The returns submitted by the stations will be checked with the message drafts and the correctness of the charges collected on the latter verified as indicated in Paras 2244 to 2251 A II. The total of the return will be traced into the balance sheet. Statements of apportionment of earnings from inter-changed telegrams should be checked as indicated in the note under Para 171 of Railway Audit Manual. 1124. Concurrent check of Police Warrants and Credit Notes (Parcels and Goods): The warrants and credit notes in respect of the stations selected for audit should be checked concurrently and undercharges, if any, noticed should be pointed out for inclusion in the bills. As per orders of Principal Director of Audit, it has been decided to select in advance two days

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(one day in each fortnight) for auditing in Traffic Accounts Office. The checked warrants and credit notes should be traced into the bills, the total amount billed for verified and traced into the Bills Register. While auditing these vouchers, the instructions contained in Paras 2728-2730, 2904 and 2905 A.II may be borne in mind. The commission charges on warrants and credit notes should be checked with reference to the provisions of Para 2911 AII et seq. The genuineness of the warrants should be checked with reference to statements received in the Accounts Office from the issuing Officers. 1125. Review of Registers of Credit Notes kept pending: The register of Credit Notes kept pending, maintained in the Accounts Office, should be reviewed to see that prompt action is taken to include the pending credit notes in the subsequent bills. (Para 2910 AII) 1126. Audit of Coaching Balance Sheets: The audit of coaching balance sheets should be conducted with reference to the instructions in Chapter XXVII-A II. 1127. Goods Accounts: With a view to reducing the work load at the stations and in the Accounts Office and ensuring the accountal of goods traffic of a month in the same month's accounts, simplified procedure of accountal of goods traffic has been introduced in respect of local traffic and traffic interchanged with other Indian Government Railways. Under this procedure, the accountal of goods traffic both “paid” and “To-pay” is done on forwarded basis. The station prepares the invoices in four foils for local traffic and five foils for foreign traffic. One of the foils is termed 'Account foil'. Each station arranges the invoices into four distinct bundles, one for each of the following types of invoices: i.

1. Local to-pay 2. Local paid 3. Foreign to-pay 4. Foreign paid

A covering memo is prepared and placed on each bundle. These bundles are collected by the couriers deputed for the purpose to the stations at the prescribed intervals and delivered in the Accounts Office. The invoices are checked in the Accounts Office with reference to the covering mema to see that all invoices issued during the period have been correctly received and in respect of cancelled invoices, all foils except the 'Record foils' have been received. This is done by examining the continuity of the printed Railway receipt numbers on the invoices. In the case of paid invoices, in addition to check of continuity of printed numbers, the numbers are verified by Accounts Office with reference to the particulars of paid invoice books supplied to the stations. The cancelled invoices are detached from the bundles and kept separately. ii. The invoices are checked in Accounts Office to the extent prescribed in regard to the correctness of route, rate and classification and codes. The freight is checked manually only in the case of live stock, traffic in wagon loads, minimum charges, wagon kilometre rates etc. and traffic to non-Government Railways. iii. The bundle of Accounts foils of the invoices are thereafter handed over to the Statistical Branch with the covering memo where the calculation of the freight charges is checked by the machines. A card is punched for each invoice and machine outward abstracts are prepared detailing the invoices booked to each station from all the stations on the home

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railway and foreign railways separately in three copies for local traffic and four copies for foreign traffic. Simultaneously, a statement showing the under and over charges found as a result of check of invoices is prepared by the machines and undercharges over Rs.50/- are advised to to the destination stations immediately, for collection before delivery. From the cards punched for the invoices, a paid statement in respect of traffic booked from each station to various stations is also prepared by the machines separately for local/foreign traffic. The statement is utilised to verify the correctness of the debit taken against ‘outward paid traffic (local)’ in the balance sheet of the station. Copies of the machine outward abstracts are sent to the destination stations, in duplicate. In the case of foreign traffic, two copies are sent to the Divisional Offices and one copy to the receiving Railway Accounts Office. These are converted by the destination stations as their inward abstracts after linking the entries appearing in the delivery books with the machine prepared abstracts. The undercharges or overcharges discovered as a result of check of invoices at the destinations are noted in both the copies of the abstracts. In the case of undercharges due to error in description and weight, a copy of the relevant invoice with particulars of undercharges is sent to the Accounts Office with the machine abstracts. The total of the 'To-pay' items in the abstracts is cast and this forms the basis of the debit to be taken against the item 'Goods Inward To-pay(local)' in the debit side of the balance sheet. In the case of foreign traffic, a summary is prepared by the destination station bringing forward the corrected totals of 'To-pay' items in the machine abstracts received from all the Railways and this forms the basis of the debit to be taken by the station against the item 'Goods Inward To-pay(foreign)' in the balance sheet. iv. Copies of the converted abstracts (local and foreign) are submitted along with the balance sheet of the station for the month. The converted abstracts received from the stations are checked in the Accounts Office, with reference to the copies of the machine outward abstracts available with them and the correctness of the debit taken in the balance sheet against 'Inward to pay traffic (local/foreign)' is verified. v. The monthly incorrect statements which are received from the machine section form the basis for raising debits against the station. In the case of foreign traffic, the monthly incorrect statements for undercharges debitable against the destination stations as also for overcharges on 'To pay' invoices are sent by the forwarding Railway Accounts Office to the receiving Railway Accounts Office duly supported by the original invoices. Receiving Railway Accounts Office checks all items of overcharges before sending the advice to the Commercial Departments for arranging voluntary refunds. As regards undercharges, the verification in the first instance is done by the receiving Railway Accounts Office with reference to the Machine Prepared Abstracts received back from the stations recording therein undercharges as per Inward Delivery Book. For items where undercharges have not been accounted for by the stations, necessary debits are raised after recheck of charges. 1128. Audit of Invoices: The audit of invoices is done on forwarded basis i.e., the accounts foils submitted by forwarding stations to the Accounts Office are checked in respect of stations selected for audit to the extent prescribed. The selection of invoices for audit is made from the paid statement of the selected stations which show details of invoices in respect of both 'paid' and 'to-pay' traffic. In regard to the selected invoices (foreign) which have been included in the Statement of Incorrect Invoices and sent by the Accounts Office to the Accounts Offices of the receiving Railways, a list should be prepared and sent to the Principal Director of Audit of the receiving Railway concerned, for audit. Other selected invoices “Paid” and “to pay” relating to both local and foreign traffic available in the Accounts Office should be audited in all respects including class, rate, freight etc. as

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indicated in Para 2305-2306 AII. exercised.

In addition, the following further checks should be

a.

All the paid invoices selected for audit should be traced into the 'paid' statement and 'to-pay' invoices should be traced into outward abstracts.

b.

The continuity of paid invoices should be verified with reference to the 'Register of Paid Invoice Books' supplied to stations, maintained in Accounts Office and the number of 'to-pay' invoices should be checked with the commencing and closing numbers given in the covering mema received from the stations. In addition to these checks, the continuity of invoices should also be checked by comparing the first entry in the current month's paid statement (viz., month of accounts selected for audit) with the last entry in the previous month's paid statement, both for 'paid' and 'to-pay' invoices. The continuity of the invoices within the paid statement should also be checked.

c.

In respect of cancelled invoices, it should be seen that all foils except the record foils have been received from the stations, and

d.

The disposal of discrepancies, if any, recorded in the converted abstracts by the receiving stations, such as in the case of undercharges due to error in weight and description, should be checked to see whether adequate action has been taken by the Accounts Office.

1129. Check of Invoices marked for weighment enroute: The check of invoices marked for weighment enroute should be done both with reference to the Accounts foils of the invoices and the converted abstracts of the station selected for audit. The following procedure should be followed in audit. Local Traffic: a.

If the invoice selected for check had been endorsed for weighment enroute, the actual chargeable weight should be ascertained from the monthly statements of weighments/daily advices received from weigh-bridge stations(vide rule 1424 (b) and 1425 of Indian Railway Commercial Manual) and compared with that taken into account by the destination station in its converted abstract for the purpose of recovery of freight and discrepancies, if any, taken up, and

b.

While tracing the audited invoices into the machine prepared abstracts, it should be seen that invoices marked for weighment enroute have been properly identified by an asterisk in the machine prepared abstracts or alternatively have been included in the Register 'Statement of Invoices marked for weighment enroute'.

1130. Audit of Invoices (Foreign Traffic): The procedure outlined in Para 1129 of this Manual should be followed in respect of goods traffic relating to foreign traffic. As stated in Para 1128(iii)-Ofice Manual, the Accounts Office of the forwarding railway will send one copy of the Machine Prepared Outward Abstract to the Accounts Office of the receiving railway and two copies of the abstracts to the destination stations concerned through the Divisional Headquarters of the receiving Railways. The stations will compare these abstracts with delivery books, then convert them into Inward

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Abstracts and take debit in their Balance Sheets for the total amount in the abstracts. It should be seen that the inward abstracts sent by the stations along with their Balance Sheets, correspond to those received in the Accounts Office from foreign railways. 1131. Check of invoices marked for weighment enroute: (a) The procedure for the check of invoices(local) marked for weighment enroute detailed in Para 1130 O.M. will apply mutatis mutandis for foreign traffic also. (b) Since this office will not be able to check the invoice selected for audit with reference to the weigh-bridge advices and converted abstracts, full particulars of foreign invoices marked for weighment enroute selected for monthly audit indicating station from, station to, invoice number, railway receipt number, wagon number and owning railway, charged weight, rate charged, weighbridge where required to be weighed etc. should be furnished to the Principal Director of Audit of the receiving Railway. The Audit Officer of the receiving Railway will ascertain the actual chargeable weight in respect of these invoices from the extracts of weighbridge returns furnished by the Railways on which weighbridge stations are situated to the destination Railways and from the weighbridge advices received by the Traffic Accounts Office of the destination station direct from weighbridge stations in terms of rule 1425 of Commercial Manual. The weight so ascertained will be compared with the weight taken into account by the station in its converted abstract. (CAG(R)'s letter No.2486-RAI/T/17-12/65 dated 12.7.1967, 1942-RAI/T/17107/67 dated 12.5.1970 and 1941-160-RAI/8-6/71 dated 10.6.1971). Note: Detailed instructions regarding internal check of invoices marked for weighment enroute contained in F.A.&C.A.O's S.O.O. No.A/GL/2 of 1967 dated 10.10.1967 may be seen. 1132. Tracing of undercharges noticed on invoices into incorrect statements and review of incorrect statements: Undercharges noticed as a result of check of invoices should be traced into the 'incorrect statements'. In addition to such tracing, the incorrect statements of the stations selected for audit should be reviewed to see that necessary error sheets are issued. (CAG's letter No.1941-160-RAI/8-6/71 dated 10.6.1971). 1133. Check of Invoices - Non-Government Railways: The following procedure should be followed in regard to the check of invoices booked from this Railway to non-Government Railways and vice versa. (i) Traffic booked from this Railway to non-Government Railway: The invoices accounted for in the division sheets received from the selected non-Government Railway should be checked to the extent prescribed and traced into the division sheets. (ii) Traffic booked from non-Government Railway to this Railway: In regard to the selected non-Government Railway, the invoices included in the division sheets prepared by this Railway and sent to the non-Government Railway should be checked to the extent prescribed and traced into the division sheets. As the invoices from the Non-Government Railway are sent along with the division sheets in the month of accountal itself, the invoices included in the division sheets should be checked to the extent prescribed concurrently.

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1134. Comparison of outward and inward traffic returns and review of unaccounted for invoices (Non-Government Railways): The Inward Division Sheets of the Non-Government Railway selected for audit of invoices should be compared with the forwarded abstracts of the stations of this Railway selected for audit. This should be done in the fifth following month. 1135. Railway Material Traffic: Railway Material Traffic does not come under the purview of simplification of Traffic Accounts procedure. The check of Railway Material Traffic notes and the bills should be done concurrently in respect of the stations selected for audit. The RMC notes should be compared with the entries in the forwarded abstracts to see that all RMC notes have been received. The RMC notes should be examined with reference to the list of officers authorised to issue RMC notes furnished by CCM to the Financial Adviser and Chief Accounts Officer to see that the consignments have been booked by a Railway consignor to a Railway consignee and the nature of the material booked is prima facie Railway material. If the consignee or consignor is not a Railway official, it should be verified whether charges have been calculated at public tariff rate. The correctness of the freight should be checked with reference to kilometrage, weight and rates prescribed for the R.M. Traffic and the amount traced into the carriage bills. 1136. Comparison of Outward and Inward Returns(RMC): Comparison of outward and inward returns should be done in the fourth following month. The inward abstracts and invoices relating to local traffic received from the stations should be compared first to ensure that all the invoices are received. The inward abstracts should then be compared with the forwarded abstracts to see that R.M.C. note has been received in respect of each invoice booked on R.M.C. In the case of foreign traffic, the comparison of forwarded abstracts should be done with inward division sheets. 1137. Review of Registers pertaining to Railway Material Traffic maintained by Accounts Office: It should be seen that the total of R.M.Traffic as per forwarded abstracts is tallied with the bills preferred and necessary certificate of reconciliation is recorded in the Bills Register maintained by the Accounts Office. It should also be seen that acknowledgements of receipt of bills for the total freight charges billed for as per Bills Register in respect of the selected month have been received from the Financial Adviser and Chief Accounts Officer (Expenditure) and Divisional Accounts Officers. A general review of the following registers maintained in the Accounts Office pertaining to R.M.Traffic should be conducted to see that there are no old items and prompt and adequate action is taken by the Accounts Office. 1.

Register of missing or excess RMC notes.

2.

Register of missing invoices.

3.

Register of unaccounted for invoices relating to Railway Material Traffic.

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1138. Check of Wagon Registration Fees: The statement of wagon registration fees collected, refunded/forfeited in respect of stations selected for audit should be checked with reference to the debits and credits appearing in the balance sheets of those stations. In respect of the amounts refunded, it should be seen that the amount had been originally deposited and that the receipt given to the party is collected and sent in support of the credit taken. 1139. Wharfage and demurrage returns: The wharfage and demurrage returns of the stations selected for audit should be checked on the lines indicated in Para 2343-A.II and the total of the returns checked and traced into the balance sheets. 1140. Review of Debits Withdrawn: A review of the debits withdrawn should be conducted to see that: 1)

the grounds of withdrawal in each case are valid and orders of competent authority have been obtained for the withdrawal,

2)

the debits have not been raised without making necessary enquiries where so required under the procedure laid down,

3)

the registers are maintained properly in the prescribed form and are reviewed periodically by the Gazetted Officers, and

4)

the debits withdrawn on account of error sheets wrongly issued due to the mistakes of the Accounts Office are not excessively heavy.

The position of outstandings should also be examined to see that they are not old and heavy and adequate action is taken to clear the same. (Authority: Para 3214-A-II). 1141. Review of exempted debits register: The register maintained in the Accounts Office should be reviewed to see that there is no tendency on the part of the station staff to take undue advantage of the codal provision. It should also be seen that the register is reviewed monthly by the Accounts Officer. (Para 3203-A-II). 1142. Audit of Goods Balance Sheet: The accounts of a station selected for audit should be checked completely with reference to its balance sheet both in respect of received and forwarded traffic. a) Paid outward - Local and Foreign: The correctness of the debits should be checked with reference to the machine abstracts (also called "paid statements") compiled by the Accounts Office. b) To-pay inward - Local and Foreign: The correctness of the debits taken in the balance sheet of the stations selected for monthly audit should be checked with reference to the machine abstracts converted by the stations into their inward abstracts and submitted to the Accounts Office along with the station balance sheets. c) Other items accounted for in the balance sheet should be checked with reference to the connected returns.

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(Authority: Chapter XXVII - A-II) 1143. Refund lists and Overcharge Sheets (Coaching and Goods): On receipt of the balance sheets of the stations selected for audit, the connected refund lists including voluntary refunds and overcharge sheets should be obtained and checked. Special attention should be paid to the refunds made in respect of traffic originating from out-agencies. It should be seen that whenever a refund is allowed, reduction is also made in the commission etc. paid to the out-agency. Besides, it should be seen that a large number of overcharges or undercharges have not resulted in respect of traffic originating from a particular out-agency. (Paras 2403 to 2411 A.II and Para 179 of Railway Audit Manual). 1144. Miscellaneous: (1). Remission and refund of wharfage and demurrage charges: The audit of remission of wharfage and demurrage charges by C.C.M. is done by Traffic Audit Section. The audit of remission orders issued by the Divisional Railway Managers is done by the respective Divisional Audit Offices. The following procedure is prescribed in regard to selection, requisition, audit, etc. of cases of remissions and refunds of wharfage and demurrage charges. (2). Since selection of cases is to be done by Principal Director of Audit at his/her discretion, the registers of remissions and refunds of wharfage and demurrage charges maintained in the Office of the Financial Adviser and Chief Accounts Officer(Traffic), Secunderabad, are submitted to the Principal Director of Audit by Traffic Audit(Local) Section for his personal selection. (P.O.O. No.3 dated 17.05.1973). (3). As cases of remissions of wharfage and demurrage are available with the Divisional Commercial Managers, Senior Audit Officer/Audit Officer(Traffic Headquarters) will place requisitions for audit of remission cases selected for audit on Senior Accounts Officer(Traffic) and endorse copies thereof to Divisional Audit Officers and also to Divisional Commercial Managers to make available the required cases to the Divisional Audit Officer concerned for conducting audit. To facilitate timely completion of the work by divisions, viz. in the fourth following month, requisitions will be sent by 15th of the third following month. Further correspondence for obtaining the cases for audit etc. will be conducted by the Divisional Audit Officers concerned with the Senior Accounts Officer(Traffic)Secunderabad/Divisional Commercial Managers of the divisions. (4). On receipt of the files, the same will be audited by the divisions as per extant orders and current review conducted to the extent prescribed and outstanding cases, if any, will be reported to Senior Audit Officer/Audit Officer(Traffic Headquarters) by 25th of every month to enable him to exhibit the same against Senior Accounts Officer(Traffic) in the statement of non-availability of vouchers and in the return to Coordination Section. (5). After completion of audit, results will be submitted to Principal Director of Audit, endorsing a copy of the objection to Senior Audit Officer/Audit Officer(Traffic Headquarters). Even if there is no objection/audit note on the subject, the Divisional Audit Officers should send a 'nil' return to Senior Audit Officer/Audit Officer(Traffic Headquarters) for the purpose of exhibition of objections issued against Senior Accounts Officer (Traffic) in the statistics of objections. The issue of audit notes to Senior Accounts Officer (Traffic), Secunderabad and their finalisation will be done by the respective Divisional Audit Officer.

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This item should be included under monthly item in the Progress Report as well as in their programme of audit of 'Expenditure Section' and Original Audit and Post Review of this item should be arranged by the Section Officer/Asstt. Audit Officer/Divisional Audit Officer. (6). In addition, the Divisional Audit Officers should also carry out an overall review of the list of remissions. The special investigation of frequent remissions of big amounts in favour of certain parties may be conducted by reviewing individual remission cases settled at Divisional Commercial Managers level in the previous quarter, party-wise, cause-wise and station-wise. If large scale remissions are noticed in favour of certain parties, the matter is to be taken up with the Railway Administration. For this purpose, results of the special investigation should be submitted to Principal Director of Audit/Senior Audit Officer/Audit Officer(Traffic Headquarters) for taking up the matter with the Railway Administration. (Authority: P.O.O. No.3(Secret) dated 17.5.1973). (See Para 176 of Railway Audit Manual and 211 A II). 1145. Audit of cases relating to remission and refund of wharfage and demurrage charges: While auditing the cases, it should be seen that the sanctions to the waiver of wharfage/demurrage charges have been accorded by competent authorities, financial concurrence has been obtained wherever necessary and the reasons for waiver are recorded. In the case of refund of wharfage and demurrage charges, it should be seen that: i)

the amount of wharfage/demurrage charges has been accounted for by the station in the connected return,

ii)

the arithmetical calculations of the amount refunded are correct,

iii)

the claim has been preferred in time, and

iv)

the refund is made under the sanction of the competent authority with the concurrence of Accounts Department wherever necessary.

The circumstances under which wharfage and demurrage charges are usually waived by the Railway Administration are indicated below: 1. Delays in delivery occasioned by damaged condition of goods or disputes relating to weight and charges or other causes beyond the consignee's control. 2. Improbability of the realisation of the full dues by auctioning the consignments due to their low value. 3.

To avoid litigation or compensation.

4. If the charges are payable by other departments of the Railway or Government Departments. 5.

When the delay in booking arises out of priority restriction.

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6. Dispute between consignors and consignees, fall in market price, complaints regarding non-receipt of advice of arrival of goods etc. (Railway Board's letter No.3214-TT of 7.6.1945). The Railway Administration has laid down the following broad principles for the guidance of Divisional Railway Managers in dealing with applications for waiver of heavy amounts of wharfage and demurrage charges. i) In all cases of strikes, lock-outs, lay offs, etc. where it is known from the beginning that considerable amounts of demurrage and wharfage charges beyond the powers delegated to the Divisional Railway Managers for sanction of waiver are involved, the Divisional Railway Managers should keep the Chief Commercial Manager personally apprised of the position and also the decision taken by the Divisional Railway Managers in the matter of waiver of demurrage and wharfage charges so that a review could be made at Chief Commercial Manager's level, if necessary. ii) Cases beyond the powers of the Divisional Railway Managers should be forwarded to the Chief Commercial Manager with full details of the case and the recommendation of the Divisional Railway Managers for waiver of the amounts involved mentioning at the same time the total amount involved including those under the powers of the Divisional Officers. iii) In the case of strikes, lock-outs, lay offs etc. in the factories or industrial sidings, the Division should impose an immediate restriction on booking to such factories or sidings so that heavy inflow of traffic which cannot be worked into the siding may be avoided. iv) A suitable clause should be provided in the agreement to levy demurrage charges on wagons detained in the yard awaiting placement in the sidings, in the event of a situation arising out of strikes, lock-outs, lay-offs etc. (Chief Commercial Manager's Circular No.C.200/GI/P of 19.12.1966). 1146. Compensation for goods lost, damaged etc.: (1). The selection of compensation claims cases is made from the monthly statement of pay orders issued by the Chief Commercial Manager(Claims) a copy of which is received through the Financial Adviser and Chief Accounts Officer(Traffic). Selection of cases is made by the Principal Director of Audit. Out of the cases selected, all cases (other than court cases) with value of Rs. 40,000/and above will be reviewed, cent percent by Sr. Audit Officers / Audit Officers; Rs. 39,999/and below upto and inclusion of Rs. 10,000/-, 50% by Section Officer / Asst. Audit Officer; below Rs. 10,000/- above Rs. 5,000/- - 25% by Sr. Auditor / Auditor and below Rs. 5,000/- 10% by Auditor. (2). The cases should be reviewed on the lines indicated in Para 2414 AII and the amount paid verified with reference to the paid voucher. (3). Court cases relating to compensation claims decided against the Railways should be reviewed to the extent prescribed.

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(4). The number of cases to be reviewed as per the prescribed percentage are counted against the total number of cases fixed for audit by the Principal Director of Audit. (5). All selected court cases will be reviewed by Section Officer/Asstt. Audit Officer/Branch Officer according to the monetary limit prescribed. (6). The extent of review of the cases by Branch Officer and Asstt. Audit Officer/Section Officer mentioned above is in addition to the usual quantum of original audit, post review and current review required to be done by them. (7).

The following points should, inter alia, be seen: i.

Delays in conduct of litigation.

ii.

Delays in taking other steps in the course of a case e.g., filing affidavit or documents, production of evidence, dealing with references from railway pleaders etc.

iii.

Inability to prove good cases.

iv.

Insufficient or incorrect advice given by lawyers including the written statement not being drawn up properly covering all points.

v.

Slackness of work in Claims Branch.

vi.

Non-availability or non-production of relevant records.

vii.

Faults of the Railway Staff

viii.

Absence of key witness

ix.

Non-appearance of the advocate

x.

Adjournment not being granted by the court, and

xi.

Delay in satisfying the court decrees resulting in execution and consequent extra expenditure.

(8). A record of all court cases reviewed by the Section Officer/Asstt. Audit Officer and Branch Officer should be maintained in the Selection Register in the following proforma; 1. S.No. in the Register. 2. C.C.M's file No., Invoice No., R.R.No. and date, station from and to, nature of consignments. 3. Brief cause of the claim/suit 4. Whether decreed or compromised out of court. 5. Amount of compensation and month of payment. 6. Legal expenses 7. Special features noticed e.g., remarks regarding: i. ii. iii.

Whether suit could have been avoided Failure of advocate. Faults of the Railway staff

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iv. v. vi. vii. viii. ix.

Absence of key witness in court Delays in satisfying court decrees resulting in extra expenditure. Non-availability or non-production of relevant records etc. Whether appeal has been preferred or not etc. Reference to Audit Note/Special letter etc., and Dated initials of the individual conducting the original audit.

Important results of the review should be submitted to Principal Director of Audit. (9). In addition to the monthly audit of claims cases, as prescribed above, the following further review should be undertaken: i.

A review of the reports of the Claims Prevention Branch sent to the Railway Board.

ii.

A review of the 'cause-wise' and 'commodity-wise' statements of the number of claims and amounts paid, submitted by the Railway Administration to the Railway Board and the cause-wise, commodity-wise and originating Railway-wise statements received from other Railways(Paying Railways) (ADAI(R)'s letter No.53 RAI-472/T/17-55/71 dated 11.1.1972), and

iii.

A review of the heavy incidence of claims relating to parcels or goods booked at particular forwarding stations. For the purpose of this review, a note should be kept each month of the incidence of claims forwarding station-wise. At the time of the review, if the incidence of claim in regard to goods or parcels booked at a particular station is seen to have been heavy, all the claims cases selected should be reviewed in detail afresh, whether or not some or all of them have already come under audit.

(10). Claims cases upto Rs.200/- each are settled by Station Masters, Commercial Inspectors, Goods Inspectors etc. of certain selected stations. During the local inspection of these stations by the Traffic Audit Inspection party, it should be seen that adequate action is taken by Station Masters to investigate and settle the claims and that endorsements of claims paid are made in the delivery books. (11). The scope of local audit also includes check of claims originating at the stations locally inspected. For this purpose, the inspection party should send a list of claims cases noted by them to the Traffic Audit Section on completion of inspection of the station. Traffic Audit Section should scrutinise these cases in detail. (CAG's letter No.2301/RAI-8-7/66 dated 27.8.1966 and No.3430-RAI/8-7/66 KWII dated 19.11.1966). (Para 177 of Railway Audit Manual). 1147. Rate circulars and Tariff charges: All cases of station-to-station rates introduced by the Railway Administration and the fixation and revision of rates of siding charges should be checked. Other rates introduced through rate circulars should be checked monthly to the extent prescribed. It should be seen from the rate notified in Local Rate Advices (LRAs) and Through Rate Circulars (TRCs) that the maximum and minimum rates for goods and

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coaching traffic laid down by the Government are not infringed. It should also be seen that prior Accounts concurrence is obtained before the rates are introduced and there is adequate justification for introduction of these rates. All amendments to Tariffs and all Rate Circulars issued by the Railway Administration should be audited by Traffic Audit Section. For this purpose, a separate 'Selection Register' should be maintained, separate folios being allotted for recording stationto-station rates, container rates, freight forwarder rates, siding charges, wharfage charges etc. All relevant particulars such as date of introduction, period of currency and due date of revision should be entered in the register. The files of Railway Administration should be called for and reviewed before the sanctions are admitted in Audit. The following points may be seen in particular: i.

Whether the basic data relating to loadability of wagons, floor area, densities etc. on which station-to-station rates are fixed, are acceptable.

ii.

The correct market value of the commodity is taken into account while giving concessional rates of freight.

iii.

In cases of upward revision of freight rates, there has been no avoidable delay in issue of notification, and

iv.

Concessional rates are kept under review constantly for timely revision or withdrawal.

In cases of special station-to-station and other reduced rates, specifically intended to attract more traffic, it should be seen whether the anticipated increase in traffic has actually materialised. The items should be concurrently reviewed by Section Officer/Asstt. Audit Officer/Branch Officer and results put up to Principal Director of Audit. Reference to Audit Note/Special letter issued should be given in the Register. The cases should be reviewed again when reviews, if any, prescribed by the Railway Board, are conducted by the Railway Administration and also at the time of revision of extension of the rates. This should be entered in the Selection Register/Progress Report maintained by Traffic Audit Section. Notifications by the Railway Administration of rates/tariff charges introduced by the Railway Board. It should be ensured that the rates are notified by the Railway Administration correctly and without delay. For this purpose, a Register should be maintained to record the rates/amendments to tariffs introduced by the Railway Board and to watch the issue of notifications by the Railway Administration. The receipt of advice of audit from the D.A.I.(R) should be watched. (Para 180 of Railway Audit Manual).

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1148. Handling and transhipment bills: Handling and transhipment bills, if any, in respect of the stations selected for audit should be completely audited. Handling bill is prepared separately for Coaching and Goods Traffic. The correctness of the weight handled by the contractor in regard to local and foreign traffic, as indicated in the handling bills, is verified by the Local and Foreign Traffic Audit Sections. The instructions contained in Paras 3002 to 3004 and 3006 A.II should be borne in mind while auditing these bills. In the case of forwarded 'paid' traffic, the weight handled should be compared with the weight recorded in the Paid Parcels Cash Book. As abstracts and summaries are not received from the receiving station for the paid parcels traffic, the weight handled by the contractor doing the handling work at the station will not be available in the Accounts Office for check of weight shown by the Contractors in their handling bills for inward paid parcels traffic received at the station. In these cases, the Accounts Office arranges payment provisionally to the extent of 90% on the basis of the weights certified by the Commercial authorities. The balance amount of 10% is paid only after the weight lifted is checked by the Travelling Inspectors of Accounts with reference to the entries in the delivery book for inward paid parcel. In respect of bills for the balance 10% passed in the month under audit of stations selected, it should also be seen that the weight shown by the contractors in the bills is certified by the Travelling Inspectors of Accounts. The Traffic Inspection Section should ensure the correctness of the Travelling Inspector of Account's certificate by verification of the particulars of handling bills (to be obtained from Accounts Office) locally during inspection. As regards handling bills relating to goods traffic, the weight shown in the handling bills should be checked with reference to machine prepared paid statements for forwarded traffic and converted machine abstracts for received traffic. The rates at which the claim is preferred should be checked with reference to the agreement. Opportunity may be taken to review the rates paid to the Station Master and outsiders from time to time to find out whether the rates allowed for the same kind of work at the same station or at stations in the same vicinity do not vary from each other to a considerable extent. The connected pay orders for payment of the handling and transhipment bills should also be called for. It should be seen that the amount of the pay order agrees with the amount finally passed by Accounts Office. The usual checks prescribed for the pay orders viz. that there is a proper acquittance for the amount paid, receipts for all gross amounts exceeding Rs.500/- are stamped etc. should be exercised in respect of these pay orders by Local Traffic Audit Section. In respect of transhipment points, handling bills should be reviewed by sending local audit party to such points, besides the check exercised in central audit. Some stations having transhipment points should be selected for local audit every year. Such transhipment stations need not always be supervised by a Branch Officer. Transhipment sheds located away from the stations should be included in the list of stations for the purpose of selection for audit and inspection. 1149. Check of crane charges: A list of cranes stabled at stations on this Railway is prepared and the return of crane hire and haulage charges relating to selected cranes is checked in audit monthly. The following checks should be exercised.

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i)

The return has been prepared in the prescribed form and all the required details are correctly furnished.

ii)

The use of the crane on each of the days or the movement of the crane if it was working at any other station is given for all the dates of the month. If particulars of working of the crane on any day are not furnished in the return, the reason therefor should be ascertained.

iii)

In respect of such days on which the crane has been shown as working at some station other than the stabling station, a return of crane hire and haulage charges has been received from the station at which the crane was used and necessary remarks in this regard have been passed in the return received from the crane stabling station against the relevant dates.

iv)

The 'Accounts foils' of the money receipts for crane hire and haulage charges are consecutive in number and if any money receipt is missing, the same should be called for. It should also be seen that the receipts for all the amounts accounted for in the return have been correctly received.

v)

The charges collected at the stabling stations have been correctly accounted for in the balance sheet of the station where the crane is stabled, and

vi)

The amount of crane hire and haulage charges accounted for by the outstations where cranes are used agree with the particulars given in the summary of crane charges submitted by the stabling stations concerned with a view to ensuring that all the amounts collected at other stations have been correctly accounted for by those stations. (Para 2344 A II).

1150. Review of Reports of Station Inspections by Travelling Inspectors of Accounts and Accounts Officers: All the reports of Travelling Inspectors of Accounts and Accounts Officers closed in a month as per their list of advices of closure of such reports should be reviewed in the following month to examine whether there is any important lacuna in the system and whether the system is working with reasonable efficiency. It should also be seen that necessary action is taken on all the points noticed by the Inspecting Officers and Travelling Inspectors of Accounts. The results of the review should be submitted to the Branch Officer. Details of the cases reviewed should be kept in the Selection Register. Stations having large number of irregularities should be preferred for local inspection and, if considered necessary, should be taken up for local audit in addition to the quantum prescribed. For this purpose, irregularities reported by the Travelling Inspectors of Accounts and Accounts Officers, which require examination locally should be entered in a register maintained for the purpose and the register sent to Traffic Audit Inspection Section quarterly for further action. 1151. Journal Vouchers including adjustment mema: The selected Journal Vouchers should be checked with reference to the supporting documents and traced to the extent prescribed. The instructions contained in Para 377 of Railway Audit Manual and Para 620 of Chapter VI (Expenditure Audit) should be borne in mind while auditing the Journal Vouchers relating to Traffic Accounts also. Audit is done in the third following month.

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1152. Pay orders and other vouchers not falling under any other category: Bills relating to refund of deposits for reserved carriages, refund of security deposits etc. fall under this category. The instructions contained in Para 280 of Railway Audit Manual should be borne in mind while auditing these vouchers. (Para 288 of Railway Audit Manual) 1153. Rebate of freight: The rebate statements should be checked to see that: 1.

the claim has been preferred within six months of the original booking,

2.

the statements have been certified by the Commercial Inspector and countersigned by the Deputy Commercial Manager,

3.

the original invoice has been accounted for,

4.

the rebooked weight is not more than the weight originally booked, and

5.

the rate ‘charged’ and the rate ‘should be’ are correct.

1154. Review of Suspense Accounts: The suspense accounts mentioned below maintained in the Traffic Accounts Branch are grouped into units and the selected units are audited monthly. 1. 2. 3. 4. 5. 6.

Traffic Accounts Other Railways Deposit Miscellaneous including Deposit Private Companies Miscellaneous Advances - Revenue Demands Payable Deposits and Advances

Suspense Registers - M - Remittances - Accounts with States, Accounts with Reserve Bank and Transfers Divisional are maintained centrally by the Books Section of Financial Adviser and Chief Accounts Officer's Office and reviewed by Books and Budget Headquarters Audit Section. It should be seen whether the balances under the suspense heads are reconciled with General Books every month. The instructions contained in Chapter VI of the Indian Railway Code for the Accounts Department Part-I and Para 371 of Railway Audit Manual should be borne in mind while reviewing the suspense registers maintained in the Traffic Accounts Branch. While reviewing the Deposit Miscellaneous Register, it should particularly be seen that the amounts of the pay orders authenticated by the Accounts Office do not at any time exceed the deposits received from the South Central Railway Employees Co-operative Society, Secunderabad. Along with the review of Deposit Miscellaneous Register, the proforma account of deposits received and pay orders authenticated should be checked. It should be seen that the mema of paid pay orders are received in the Accounts Office regularly, duly accepted by the Society and that necessary adjustment of the amounts covered by the paid pay orders is made to the deposit head without delay. (See Para 381 of Railway Audit Manual).

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1155.Audit of Postal Bills: The following bills are preferred against the Postal Department for the carriage of mail bags. 1. Regular accommodation bills preferred half-yearly for: 1.

Haulage charges of postal and non-postal vehicles or compartments, and

2.

Regular conveyance of mail bags under weighment system (carried by Railway and mail peons).

2. Bills preferred quarterly for: i.

Extra accommodation provided to the Postal Department in Railway compartments requisitioned, and

ii.

Occasional despatches by weighment system.

The selected bill of each category should be checked every half-year. It should be seen that the provisions of Chapter XVI of the Indian Railway Code for the Traffic Department(Commercial) Revised Edition 1993 have been observed and that the bills have been preferred according to the current rates. The accommodation charged for in the bills rendered should be checked with the accommodation actually provided as per statement furnished by the Station Master/Divisional Railway Managers. Any abnormal delay in the recovery of charges should be commented upon. 1156. Cashier's Station Cash Book: All the cash remittance notes received from the stations are compared with the cash check sheets to verify the accuracy of the amounts acknowledged, to the extent prescribed. Total of the individual sheets is proved and checked with the summary sheet which is then checked with the cash book. The vouchers mentioned in the cash remittance notes should be scrutinised generally to see that they are in order and have been tendered by parties duly authorised to do so and for the purposes permitted under the rules. It should be examined whether there has been any delay on the part of the stations in remitting the cash collections, whether the cash remitted by the stations has been duly acknowledged by the cashier and currently accounted for in the traffic check sheets. The action taken regarding shortages in the station remittances, if any, should also be seen. Payments into the bank should be verified with the receipts. 1157. Write off Registers: All write off cases selected should be reviewed monthly. In reviewing these cases, it should be seen that: i.

the sanctions accorded are within the powers of the sanctioning authority and the reasons for write off are adequate,

ii.

the write off is not due to any error or defect in the system or procedure, and

iii.

necessary adjustments consequent on the amounts written off have been properly carried out.

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Auction sale statements, if any, in respect of the write off cases selected for audit should also be called for and reviewed. Instructions for the conduct of auction sale are contained in Para 2235 of the Indian Railway (Commercial) Manual. It should be seen in checking auction sale statements that: i.

there is no unreasonable delay in the disposal of the consignments, and

ii.

the freight and wharfage charges outstanding at the rebooking station also have been taken into account in arriving at the amount written off.

1158. Statement of siding charges: A list of all sidings on this Railway together with rates of siding charges fixed and the dates from which these are effective is maintained in the section. The required number of sidings, the accounts of which are to be audited, is selected every month from this list. This list should be kept up-to-date with reference to the rate circulars. In March every year, the Divisional Audit Officers should furnish a list of sidings pertaining to their division to Traffic Audit Section for comparison with the list maintained by that section. The following points should be seen in the audit of sidings statements: i. An agreement exists for each siding. ii. The charges have been calculated correctly according to the agreement and the rules in force. iii. In the case of detention to wagons beyond the free time, charges have been levied. iv. As and when a siding is used under the proper sanction by a department, firm or merchant other than the one for whom it was originally constructed, remuneration charges are recovered at the agreed rates and paid to the owner of the sidings, after deducting the commission. (Note: If any bill for payment of remuneration charges is selected for audit (miscellaneous pay orders), it should be ensured that the amount is paid to the parties concerned after deducting necessary commission charges). v. The checked statement should be traced into the Register of Siding Charges maintained in the Accounts Office and the amount shown in the siding statement has been correctly taken to debit in the Balance Sheet. Whenever siding charges are paid by credit notes, the bills should be checked with reference to the Register of Siding Charges. vi. The siding charges are revised correctly once in three years as per Railway Board's orders contained in their letter No.4694-TC.VII of 10.10.1958 and action for the revision is initiated to fix the siding charges atleast six months before the revision becomes due. (Chapter XVIII of Indian Railway Code for the Traffic Department (Commercial) 1993 Revised Edition and Paras 2346 - 2348 A.II) 1159. Register of serious irregularities, losses and overpayments waived: The registers maintained in the Accounts Office should be reviewed to see whether action taken by the

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Administration is adequate and whether safe-guards exist to obviate the recurrence of the irregularity. The results of the review should be recorded in the Selection Register and the Register submitted to the Branch Officer. (Paras 9, 475 to 478 of Railway Audit Manual). 1160. Register of Objectionable Items and Provisional Payments: The general instructions contained in Para 283 of Railway Audit Manual should be followed in reviewing the registers maintained in the Traffic Accounts Branch. The results of the review should be recorded in the Selection Register and the register submitted to the Branch Officer. 1161. Review of tenders and contracts: The contracts entered into by the Chief Commercial Manager relating to handling of goods, out-agencies etc. are reviewed by the Traffic Audit Section. (The catering/vending contracts executed by the Dy. Commercial Manager/Chief Commercial Manager are reviewed by the respective Expenditure (Division)/ Expenditure Headquarters Sections respectively). Awards given by Railway Rates Tribunal should be reviewed. A separate register should be maintained for this purpose. The position may also be reviewed during inspection of Chief Commercial Manager's office. This may be entered as a half-yearly item in the Selection Register/Progress Report maintained by Traffic Audit Section(and in the list of items to be seen during inspections maintained by Inspection Headquarters Section). Instructions contained in Paras 606 and 607 of Chapter VI - Expenditure Audit may be seen. Note: Orders regarding review of implementation of contracts do not apply to handling contracts as it is seen at the time of monthly audit of handling bills of stations selected for audit that the rates paid are in accordance with the agreement. (C.A.'s(now No.Au/TL/344/Vol.I).

PDA)

orders

dated

21.9.1961

at

Page

81

of

File

1162. Traffic Book and Accounts Office Balance Sheet: Traffic book selected is checked to see that the postings are correct and complete. It should be verified that the balances under the heads 'Traffic Accounts', 'Foreign Railways' and 'Deposit Private Companies' have been reconciled with the balances appearing in the General Books. Any old outstanding noticed under the heads 'Foreign Railways' and 'Deposit Private Companies' should be pointed out. In the analysis of Traffic Book Balances in Part'B', it should be seen that resulting balances tally with the unpaid balances of Account Current. The Accounts Office Balance Sheet should be reviewed to see that the outstanding items are current and efficient and that adjustments relate to bonafide traffic accounts transactions. Outstandings remaining uncleared for over six months should be taken up. It should also be seen that i.

a reconciliation has been made between the total amount of the vouchers received by the stations concerned and the total amounts of the vouchers received as a whole from stations,

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ii.

the debits of 'Traffic Account' are correctly posted from the Bills Register, and

iii.

cash and transfer clearances are correctly posted from cash abstract book and Journal Entry Registers. (Para 178 of Railway Audit Manual and Chapters XXIX and XXXII AII).

1163. Terminal and other taxes: The terminal and other taxes levied on rail borne traffic fall into two categories: a)

Taxes levied by the local bodies and States immediately before the commencement of the Constitution of India in respect of which net proceeds are not required to be certified by the Comptroller and Auditor General of India; and

b)

Taxes levied and collected by the Government of India but assigned to the States under the provisions of Article 269(1) of the Constitution of India, the 'net proceeds' of which are to be ascertained and certified by the Comptroller and Auditor General of India.

In regard to the taxes covered by item (a) above, the general principles enunciated in Para 178(a) of the Railway Audit Manual are applicable. The amount of tax paid to each local body etc. should be checked with reference to the monthly summary (referred to in Para 2607 of the Indian Railway Code for the Accounts Department Part -III) so as to cover all the local bodies etc. The statement of tax payable for the month should be generally reviewed with reference to the statements printed by the computer or compiled manually. In the course of audit of selected station accounts, it should be seen that the amounts of tax collected are correctly taken into account in the statement printed by the computer or compiled manually. No terminal tax is levied on goods traffic at any of the stations on this Railway(CCS's letter No.C.443/1 dated 7.8.1967). As regards taxes falling under category (b) mentioned above, the following procedure should be followed: i) Printed Card Tickets: While checking the passenger classification for printed tickets, all entries ('station to') having pilgrim tax (whether falling within the entries selected for audit or not) should be traced into the Pilgrim Tax Statement printed by the computer. If it is ensured that all returns have been taken into account for compilation, no check of the correctness of the statement printed by the computer itself is required. If any return is not included in the compilation due to delayed receipt, it will be necessary to ensure that such returns are accounted for manually, in the same month or next month(s). The tracing of Pilgrim Tax should be done in respect of all passenger classification of printed tickets which are accounted for manually by the Accounts Office due to delay in receipt. ii) Check and accountal of Blank Paper Tickets: It should be seen that the Blank Paper Tickets issued by the stations falling within the unit selected to terminal tax stations are accounted for in the Terminal Tax Statements of the month in which the tickets are issued. If omission is noticed in respect of any station, the passenger classification for the entire year in respect of that station should be checked to see that the omission is not repeated in other months too.

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The Railway Administrations are required to furnish the Tax Statement for certification by the end of the second following month to which the statement pertains. Any delay in this regard should be taken up with the Financial Adviser and Chief Accounts Officer personally. The statements should be certified within a period of thirty days of their receipt in this office. Difficulties in obtaining the documents etc. should be brought to the notice of the Branch Officer. An annual certificate is required to be submitted by each forwarding Railway along with the monthly certificate for March to the receiving Railway on which the notified station is situated to enable the latter to submit a consolidated certificate to the Ministry of Railways. This annual certificate should be checked with reference to the monthly certificates. The annual certificate should be given only after ensuring that no station returns for any month of the year covered by the certificate are omitted by the Railway Administration and that all collections made during the year to which the certificate pertains are taken into account for the purpose of certification. It should also be seen that Financial Adviser and Chief Accounts Officer records a certificate in the annual accounts that all the station returns are accounted for in the year's Terminal Tax Account to which the return relates. Terminal tax proceeds are finally required to be certified by Comptroller and Auditor General of India as a constitutional responsibility. The monthly statements are, therefore, required to be signed by the Financial Adviser and Chief Accounts Officer and Principal Director of Audit personally in order to give these statements proper authenticity. Copies of monthly statements need not, however, be sent to the Comptroller and Auditor General of India(Railways). The Railway in which the notified area is situated has been made responsible by the Railway Board for paying the correct amount to the State concerned. It should be ensured that the amount of Terminal Tax certified by the Comptroller and Auditor General of India has been fully assigned to the States concerned. For this purpose, a register is to be kept in which the net proceeds payable as per the certificate issued by Comptroller and Auditor General of India should be entered showing also under appropriate columns the details of the actual adjustments of the amounts. It should be got confirmed from the Accountant General of the State concerned that the assignments made by paying Railways to the State are duly credited to the revenues of the State. This fact should also be recorded in the register maintained. Within three months of the issue of certificate by Comptroller and Auditor General of India, copy of which is also sent to the Principal Director of Audit concerned, a report should be sent to Comptroller and Auditor General of India certifying that the amount actually assigned to the State by Railways was in accordance with Comptroller and Auditor General of India's certificate and that the adjustments of the transactions was also duly verified. Provisional payments made from time to time pending the issue of final certification by Comptroller and Auditor General of India should be duly analysed according to the year of collection and payments relating to each year are entered promptly in the register. On this Railway, there are at present no notified stations where a terminal tax is leviable which require certification. However, the statements of terminal tax collected in respect of stations situated on other Railways are received and certified on the lines indicated above. (Para 178 of Railway Audit Manual and Paras 2138, 2601 to 2608 - AII).

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(CAG's letter Nos. 3114-RAI/7-3/64 dated 16.10.1964, 6237-RAI/T/17-74/69 dated 22.12.1969, 3614-26 RAI/T/17-6/70 dated 10.9.1970, 4372-RAI/T/17/74/69 dated 7.11.1970, 1558-RAI/T/17-80/65 dated 'nil' forwarding Railway Board's letter No.F(X)I66/IX-19/3 dated 12.4.1971 and 1941-160-RAI/8-6/71 dated 10.6.1971 and Para 178 of Railway Audit Manual and Paras 2138, 2601 to 2608 - AII). 1164. Audit of Tolls: No toll charges are collected on this Railway at present. 1165. Capital and Revenue Accounts: The statements of earnings under Abstracts X, Y and Z included in the Capital and Revenue Accounts should be checked with reference to the Traffic Receipt Book maintained in Traffic Book Section of the Accounts Office. 1166. Working of the Accounts Department: Instructions contained in Para 135 of Railway Audit Manual and Para 519 of Office Manual may please be borne in mind. 1167. Proforma Accounts of work done on behalf of other Government Departments: A proforma account showing commission charges earned and expenditure incurred is prepared by the Accounts Office when tax is collected on behalf of other Government Departments and outside bodies. It should be seen whether the Administration has reviewed the adequacy of the commission charges for rendering the service. The results of such examination by the Administration should be reviewed to see that all incidental expenses have been taken into account and that the Railway does not suffer any loss in rendering the service. 1168. Apportionment of earnings between main and worked lines: There are no worked lines on the South Central Railway. (Dy.CAO's letter No.A/GF/Gen/069/SCZ dated 10.8.1967). 1169. Pooling Traffic Arrangements: Such arrangements wherever existing are to be scrutinised with a view to seeing that the interests of Government as a whole are not appreciably affected and that the distribution of earnings between the parties concerned is done on a fair and equitable basis. For this purpose, the files of the Railway Administration should also be reviewed to see whether over a period of years the arrangements have been operated unfavourably to any party, justifying a revision of the terms originally agreed upon(CAG's letter No.706-RAII/T/17-45/62 dated 21.3.1964). NOTE: At present there are no pooling traffic arrangements involving South Central Railway. 1170. Wagon Pool Accounts (i) Pakistan Railways (ii) Indian Railways: Audit of these items is conducted by the Principal Director of Audit, Northern Railway(Dy.CA/N.Railway's letter No.NFTA/8-9/61/II/13 dated 7.4.1962 to Dy.CA/SC and Dy.CA/SC letter No.TAL/344 dated 25.7.1963 to C&AG(R). 1171. Collection and delivery service-procedure for payment to contractors: Bills preferred by street collection/delivery contractors should be checked in audit as and when a station where the system is in force, is selected for monthly audit. In the course of audit, bills should be checked to see that: 1.

weight particulars in the contractor's bills tally with those in parcel way bills, invoices or abstracts etc,

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2.

the rates charged are in accordance with those provided in the agreement, and

3.

the arithmetical calculations are correct. (CAG(R)'s letter No.3406-RAI/T/17-51/66 dated 19.8.1968).

1172. Audit of Cess on Coal: (1). It should be seen in the audit of invoices for money coal traffic and of bills for 'weight only' coal traffic that 'LDCC' charges have been correctly levied. The LDCC is not being levied for weight only coal. Hence one coal siding is selected every month. (2). The computerised LDCC statements which contain the code numbers of forwarding stations and the receiving railways are to be called for monthly from the Accounts Office. The number of forwarding stations (at present 8 stations on South Central Railway) mentioned in the statements, both for money coal and weight only coal, should be counted and selection obtained of the total number of stations. The weight shown in the statement is to be checked with reference to the Invoices/Forwarding Notes of the selected station received in the Accounts Office. (3). The total amount paid as per statement should be checked by multiplying the total weight shown therein with the rates of LDCC. (4).

It should also be seen that commission charges are realised correctly.

(5). In respect of 'To-pay' Traffic booked to foreign railways, the results of the check conducted by the Audit Offices of the forwarding railways should be intimated to the Audit Offices of the Railway receiving the coal. Discrepancies etc. noticed by Audit Offices of the forwarding railways should be taken up with the Accounts counterparts and the final results advised to the Audit Offices of the receiving railways to enable them to ensure that the correct amount is paid by the receiving Railway Accounts Office(CAG's letter No.1706RAI/T/17-14/66 dated 12.5.1969). Note: In the case of Local Traffic, this item is done annually. 1173. Miscellaneous Statements (Goods and Coaching): Miscellaneous statements (local and foreign) should be checked to the extent prescribed against "f" under General Programme of Audit (Foreign Traffic). It should be seen in audit that the statements have been correctly prepared from the relevant returns and dealt with in the Accounts Office promptly and correctly according to the extant rules and orders. 1. 2. 3. 4. 5. 6.

Statements of over-charges (voluntary refund statement) Coaching and Goods. Statement of special credits (twice accounted for invoices/parcel way bills). Paid-on charges statement -Coaching and Goods. Advice of weighment of consignments. Check of commission charges on credit notes. Register of invoices relating to consignments of Fodder Traffic carried in famine conditions.

The items mentioned at serial numbers 1 to 6 should be done in respect of stations selected for audit.

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Commission paid to Tourist Agents: This should be checked in respect of the Tourist agents selected for audit. i. Objection statement of Military Department and other than Military Department. ii. Military rejection statements received from the Military Department together with the credit afforded by the Controller of Defence Accounts. iii. Loco Coal bills including transfer advices. Audit of all the selected items mentioned in S.Nos. (i) to (iii) should be completed during the course of the year. a) Cartage bills – parcels. b) Out-agency bills – parcel traffic. c) Cartage adn out-agency bills (Goods). The bills preferred by the out-agents should be checked with the outward and inward returns submitted for local and foreign traffic. (See also Paras 2501 to 2506 A-II) 1174. Net Balance Statement - Non-Government Railway: In addition to the accuracy of the arithmetical calculation, it should be seen with reference to the division sheets or grand summaries that the share due to each Railway has been correctly taken and that the net debits and credits have been correctly arrived at. 1175. Review of concession register maintained in the Accounts Office: The Accounts Office receives from the Divisional Commercial Managers specimen signatures of the Heads of Educational Institutions and specimen of their seal together with the number of concession order books supplied to institutions. These particulars are recorded in the register maintained division-wise by the Coaching Local Section of the Accounts Office(Accounts Office P.O.O. G/2 of 1961-62). The registers should be reviewed to see that the instructions in the P.O.O. are complied with and the discrepancies noticed should be taken up with the Accounts Office. The working of the machinery in the Railway Administration to prevent misuse of concessions in passenger fare etc. by unauthorised persons should be reviewed half-yearly by Traffic Audit Section and during inspections by Divisional Audit (Inspection) and Traffic Audit (Inspection) Sections. This should be entered as a half-yearly item in the Selection Register/Progress Report maintained by Traffic Audit Section and as one of the points to be looked into by Divisional Audit Inspection and Traffic Audit Inspection Sections during their inspections. 1176. Check of Miscellaneous Cash Receipts: A register is maintained in the Accounts Office for watching the prompt receipt of returns of miscellaneous cash in the prescribed form from all departmental officials who are authorised to collect and remit cash. It should be seen that: 1. the commencing number of Miscellaneous Receipt Transmit Note in the return of a month received from the Department is in continuation of the closing number of the

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previous month and is accounted for in consecutive order. If there are any missing numbers, the matter should be taken up with the Accounts Office, 2. the amount shown in the third foil of the Miscellaneous Receipt Transmit Note agrees with the figure shown in the return, and 3. the amount shown in the third foil of the Miscellaneous Receipt Note received from the department should be checked with the amount indicated in the corresponding second foil received from the station along with the Miscellaneous Cash Remittance Return as well as in the Miscellaneous Cash Remittance Return itself to ensure that the amount shown in the second and third foil of each Miscellaneous Receipt Transmit Note agrees and that the amounts remitted to stations by the departments have been correctly accounted for by the stations in their balance sheets. The correct classification of the receipts should also be checked. The register mentioned above should also be reviewed yearly to see that it is complete in all respects, that the check over the receipt of returns is properly carried out and adequate action is taken by the Accounts Office in case of delay in receipt of returns.

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CHAPTER - XII SPECIAL AUDIT GROUP 1201. Duties of the Section: The duties of the Special Audit Group Section(also known as ECPA) are indicated in paras 2.2.42 to 2.2.46 of the Manual of Standing Orders(Audit) and Chapter XXIV of Railway Audit Manual. The Special Audit Group will, among other things, undertakes special investigations/reviews. Lists of topics suggested for investigation are given in the Annexure to Section II Chapter 2 of Manual of Standing Orders(Audit) and Chapter XXIV of the Railway Audit Manual. Special reviews are to be carried out as suggested by the DAI/Principal Director of Audit , from time to time. One or more topics will be selected by the Principal Director of Audit every month for investigation. The investigation should generally be conducted by the SAG Section itself without entrusting it to other auditing units/sections. In exceptional cases, however, data available at the unit level may be called for. This section should also co-ordinate investigation of topics specially selected by the Principal Director of Audit to be done by the various auditing units. 1202. Special Audit Group: Even though for the purpose of certifying the accounts, routine checks have to be carried out to satisfy that the accounts are correct and give a fair view of financial results for the year, the emphasis of Government Audit has undergone considerable changes. The regularity of expenditure with which Audit was mainly concerned has gradually yielded place to a wider concept, viz. whether the expenditure has been incurred with “wisdom, faithfulness and economy’. With this end in view, efficiency audit of projects under execution, such as construction of new lines, doubling of lines, remodelling of yards, remodelling of workshops, augmenting repair facilities, transhipment sheds, improved signalling arrangements etc. which are in an advanced stage, and efficiency-cum-performance audit of similar schemes when completed and put into use are taken up by the SAG Section. For this purpose, the section should maintain lists of major works, coming under the various Five Year Plans, drawn up with reference to Works Programme, Financial Reviews, General Manager’s Annual Report etc. and obtain selections at the appropriate time. The efficiency of construction may be reviewed with reference to the expedition with which the surveys and the finalisation of tenders were conducted, the actual commencement of work and periodical progress compared to the original schedules etc. while the types of works found necessary and soils met with during actual execution would be an index of the accuracy of the technical appreciation in the estimates, the pattern of rates obtained in the tenders and any special aspects of construction or terrain might help in reviewing the dependability of financial forecasts, vis-à-vis the actuals. The correlation of the actual expenditure with the physical progress from time to time would also indicate the financial efficiency of execution of the works. The review would thus be to assess the actual performance both technical and financial, in relation to the original planning and anticipations. Apart from examining the points detailed in Para 2.2.42 of Manual of Standing Orders(Audit), the following aspects may also be given due consideration to see that the schemes were undertaken after a careful analysis of the economics thereof.

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1)

Whether fair and wide publicity was given to the tenders to make them competitive and whether the sanctity of open tenders was duly maintained? Whether the rejection, if any, of lower tenders was done on adequate grounds and whether in cases of allowing price preference on account of earlier deliveries, the stipulated delivery period was strictly observed. It should also be generally seen that the scope for receiving competitive rates is sufficient or it requires improvement.

2)

Whether in the case of works undertaken on urgency certificates, there was any delay in preparing technical estimates, the works were completed expeditiously and they were put to the expected use immediately after completion.

3)

Where works had been left incomplete or their progress slowed down, it should be seen whether the circumstances responsible therefor could not be foreseen well in time to avoid infructuous expenditure and blocking up of funds. If any work has been treated as abandoned, it should be seen whether its cost is promptly written down from Capital to Depreciation Reserve Fund with a view to reducing the dividend liability.

4)

Whether there are apparent facts indicative of the likelihood of enormous idle capacity on completion of certain schemes or whether the traffic offerings are expected to be very inadequate, resulting in the additional capacity created remaining unused. If so, whether the administration have taken steps to arrest the magnitude of infructuous expenditure to find alternative means to make best use of the assets. It should be specially seen whether the works though almost completed have not been thrown open for traffic to avoid any criticism about lack of earnings and/or are allowed to drag on with comparatively poor progress in some physical aspects just to explain away the delay in opening of the lines.

5)

Whether in the case of practically completed works, the number of staff employed has been brought down and expenditure on other ancilliary items proportionately reduced.

6)

In the case of new lines or doublings, whether the lines have been thrown open for speeds mentioned in the Project Estimates or not, if not, the reasons for speed restrictions and its financial effect on working should be examined.

7)

Whether any major changes in specifications laid down in estimates or tenders have taken place and if so, its financial effect should be examined (ADAI(Railway)’s letter No.1047-RAI/8-5/65, dated 11.4.1966).

Railways enjoy more or less monopoly in the matter of transport of passengers and goods. Profitability under the circumstances does not necessarily indicate efficiency of operation. Performance of Special Audit Group, therefore, requires more emphasis and the following points require special attention: Adequate utilisation of capital assets: Apart from utilisation of existing assets, it has to be seen in the case of new constructions that the assets created are usefully and gainfully employed so as to yield the anticipated results. This will require study of the Project Reports, time schedule of construction, anticipated financial results, use of capital assets created and financial results actually obtained. It should also be seen that the factors on which justification for the creation of the assets was based, have been properly gauged and that there

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has been no subsequent developments which have changed the flow of traffic resulting in under-utilisation of the facility. The review should bring out fully the background, objectives, initial estimates of investments, financial justification and how these were defective (if so) and, how far these have been realised in actual execution and subsequent traffic arisings or materialisation of workshop loads etc. (Paras 2.2.42 to 2.2.45 of Manual of Standing Orders(Audit)) 1203. Investigations based on published Railway Statistics: A list of statistical subjects likely to provide useful study for the purpose of making suggestions for economy in expenditure or augmentation of revenue has been compiled and appended to this chapter. Principal Director of Audit will select one or two topics occasionally for investigation to be done by the SAG Section or by the various auditing sections concerned according to the nature of the topics selected. In the latter case, the SAG Section will co-ordinate the investigation. The published statistics will also be circulated among the Branch Officers to enable them to initiate investigations and for suggesting fruitful topics for investigation. 1204. The following reports are to be reviewed by the SAG Section as and when received and the results bringing out important points, if any, put up to Principal Director of Audit: (i)

General Manager’s Annual Report

(ii)

Railway Board’s Annual Statistical Statements

(iii)

Civil Audit Reports

(iv)

Digest of important and interesting cases appearing in Audit Bulletins.

(v)

Reports of Estimates Committee.

(vi)

Reports of different committees constituted by Central Government having financial bearing such as Railway Reforms Committee etc.

(vii)

Quarterly Progress Reports of the Railway Administration on Economy – Fuel, Staff etc.

(viii)

Reports on the working of the Railway Protection Force.

(ix)

Domestic Statistical Reports, selected statistical results and minutes of statistical meetings.

1205. Railway Budget: A broad review of the Indian Railways Budget with special reference to the South Central Railways estimate should be carried out by the SAG Section in May/June each year and results submitted to the Principal Director of Audit. The review should inter-alia bring out the impact of the Five Year Plan etc. on the Railway's Finances, the new schemes proposed and the audit arrangements which would eventually become necessary in connection with these schemes and projects. 1206. Scrutiny of important special adjustments initiated towards the close of the financial year, which require special examination in SAG Section: During the scrutiny of March Accounts, Divisions and Sections should keep a careful watch over all major

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adjustments carried out by the Accounts Office. Any special adjustments involving heavy amounts carried out in March Accounts which the Branch Officer considers as requiring special investigation should be intimated to SAG Section, for investigation of adjustment in detail. (CAG letter No.419-Admn/42-59 dated 10.2.1960 received under ADAI (Railways) No.475-RAI/A17/I/59 dated 18.2.1960). 1207. Comptroller and Auditor General of India's References(C&AG References): The information furnished to SAG by Sections/Divisions with reference to Comptroller and Auditor General of India's references should invariably be got vetted by the Accounts counterparts. In case the information has been furnished by the Accounts Office itself, the correctness thereof should be verified by the Sections/Divisions concerned before it is passed on to SAG. 1208. Review of Periodical Confidential D.O.s(PCDOs.): The periodical confidential D.O.s from the General Manager to Chairman, Railway Board, Heads of Department to the Directors concerned in Railway Board office and Divisional Officers to the Heads of Department should be reviewed by the Asstt. Audit Officers of SAG Section (also known as ECPA) so that important and interesting cases can be developed and taken up with the Railway Administration with the approval of Principal Director of Audit. PCDOs sent during the previous quarter may be covered in each review. The results of the review done in a month should be put up to the Principal Director of Audit by 10th of the following month, through the Branch Officers concerned. (P.O.O. No.79 of June 1985).

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APPENDIX (Para 1203) LIST OF STATISTICAL SUBJECTS I. Operating Statistics. (1) (2) (3) (4) (5) (6)

Fuel Consumption. Engine Usage. Engine failures. Lubrication Oil Consumption. Repairs and maintenance cost of rolling stock per engine kilometre/coaching vehicle/wagon on line. Rolling stock under repairs or awaiting repairs. (a) (b) (c)

(7) (8) (9) (10)

Average kilometrage run by engine undergoing POH, since last POH. Engine held up in sheds for want of repair material from the Mechanical Department. Cost of Special Repairs/POH per standard Unit of repair in workshops. Detention to wagons: (a) (b) (c) (d) (e) (f)

(11) (12) (13) (14)

Locos Coaches Wagons

In yards At terminal stations In transit In workshops At transhipment points At sick lines

Utilisation of Wagons. Number of wagons dealt with per shunting hour. Average time taken in sending out a wagon from station after being released or re-loaded - quick turn-round of wagons. Review of the effect of introduction of diesel traction/electrification with special reference to effective utilisation of Diesel/Electrical locos and disposal of old steam locos.

II. Maintenance. Cost of maintenance per unit of track, building, bridges etc. on different Railways or on the same Railway over some years. III. Claims. Examination of statistics of compensation claims vis-à-vis the cost of Commercial staff, RPF staff and the efficiency of the arrangements for handling traffic. IV. Traffic.

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Tonne Kms. Per engine hour (to serve as an index of efficiency) for different Railways and for the same Railway over some years. V. Financial Results. 1.

Financial Results including operating ratios of the different Railways or of the same Railway for the past few years.

2.

Economics of some selected sections of the Railways (e.g.) branch lines, worked lines, suburban system etc. to examine the cost of operation vis-à-vis the earnings.

3.

Money value of the traffic, season and standing concessions vis-à-vis the cost of operation for examining the propriety of the concessions.

***********

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CHAPTER - XIII CO-ORDINATION SECTION 1301. Duties of the Section: Co-ordination Section is responsible for co-ordinating the work among the various sections and divisions of the office. The main functions of the section are detailed below: (1) Consolidation of material received from Branch Offices/Sections in connection with various returns due to be sent to the DAI excepting those relating to Office Administration, Finance Accounts, Capital and Revenue Accounts, Appropriation Accounts etc. (2) To deal with references received from the DAI connected with the programme of audit and extent of check and other important policy matters requiring collection of information from various Auditing Sections. (3) To examine important objections reported by branch offices/sections and pursue them centrally with the F.A.&.C.A.O. after ascertaining the position in that regard from all other units concerned. (4) To deal with all matters concerning periodical meetings of the Principal Director of Audit with the Branch Officers and to collect material from all sections/divisions for inclusion in the agenda for the meeting of the General Manager with the Heads of Departments. (5) To scrutinise and submit to the Principal Director of Audit, Paras for Register of Audit Activities received from the Branch Offices/Sections and to circulate to DAI and other Zonal Railway Audit Offices the items selected by the Principal Director of Audit and similarly to circulate to the Branch Offices/Sections the extracts of important results of audit received from other Zonal Railway Audit Offices. (6) To maintain the Registers of (i) Special Letters (ii) Audit Activities (Important Results of Audit) etc. (7) To deal with the Tour Notes of DAI/Principal Director of Audit/Director/Deputy Director. (8) To deal with the Charge Reports of Principal Director of Audit/Director/Deputy Director. (9) Maintenance of P.O.O. Register and distribution of P.O.Os. to all Sections/Divisions. (10)

Hindi Cell

(11) Building up of data bank of Audit Objections under Special Letters / Inspection Reports / Audit Notes in consultation with EDP. 1302. Efficiency of Internal Check: A report showing the position of arrears in Accounts Office and lapses/defects in internal check should be prepared by all the Branch Offices/Auditing Sections after the close of March Accounts every year and forwarded to the respective Accounts Officers for their remarks/acceptance. The report should be prepared in

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four parts in the form given in Annexure-I to this Chapter and the same should be sent to Coordination Section duly accepted by the Accounts Office by 15th November. While preparing the report, it should be ascertained by a complete review of all the registers maintained for the purpose in the Accounts Office that adequate machinery exists in internal check to watch recovery of all charges for services rendered to staff e.g., Diet charges, Electrical Energy charges, Rent for Quarters, Rent on Electrical Installations and Sanitary Fittings, Conservancy charges and Miscellaneous charges. Lapses on the part of the Accounts Office to take appropriate action for recovery of these charges should be brought out in the report. The Coordination Section will consolidate the reports and pursue the matter further with the Financial Adviser and Chief Accounts Officer, wherever necessary, duly obtaining the orders of the Principal Director of Audit. Important arrears in Internal Check should be taken up by the sections concerned with the Accounts Office. Such of the items in which there is no improvement in arrears even after bringing it to the notice of the Accounts Office should be included in Part I of the Report on Efficiency of Internal Check. As regards cases relating to defects in Internal Check to be included in Parts II to IV of the report, serious lapses such as those which would facilitate fraud, leakage of revenue etc. should be taken up with the Accounts Office promptly as and when such cases are noticed. The more important lapses in Internal Check meriting inclusion in the Audit Report may be processed as Draft Paras. 1303. Statistics of Volume of Work done in Audit Offices: For the purpose of collection of suitable statistics to serve as a fair index of the volume of work done in Railway Audit Offices, information in the prescribed form (vide Annexure-II to this Chapter) is submitted by the Branches/Sections to reach Coordination Section before 1st August each year. The consolidated information should be sent to the DAI so as to reach his office before 10th August each year. 1304. Procedure Office Order Register: Orders dealing with changes in procedure, interpretation and modification of Rules etc. received from the Comptroller and Auditor General of India or approved by the Principal Director of Audit for implementation, are notified through Procedure Office Orders. All P.O.Os. will be entered in the P.O.O. Register maintained in the Coordination Section and numbered serially. P.O.Os. emanating from other sections should also be routed through the Coordination Section, which will arrange to obtain the approval of the Principal Director of Audit and assign the serial number with reference to the P.O.O. Register. A copy of the P.O.O. will be pasted in the P.O.O. Register. Copies of P.O.Os. will be distributed by the Coordination Section to all Officers, Sections/Divisions for information and necessary action. 1305. Programme of Audit: The Correction Slips to the Secret Memorandum of Instructions regarding the Extent of Audit(Railway Audit) received from the DAI will be circulated by the Coordination Section to all units along with supplementary instructions, wherever necessary, duly approved by the Principal Director of Audit. 1306. Preparation of Charge Reports of Principal Director/Director/ Deputy Director: After collecting material from the Divisions/Sections, the Charge Reports of Principal Director/Director/Deputy Director will be prepared by the Coordination Section.

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1307. Tour Notes of Principal Director of Audit/Director/Deputy Director: Tour Notes of Principal Director of Audit/Director/Deputy Director will be made over to the Coordination Section for taking out copies and despatching to Divisions/Sections concerned for necessary action. The Divisions/Sections will send their reports to Coordination Section in respect of the items referred to them as expeditiously as possible. The Coordination Section will put up the replies to the Principal Director of Audit/Director/Deputy Director for orders. 1308. Recoveries at the instance of Audit: After close of the financial year, a statement showing the recoveries and savings effected at the instance of audit should be prepared by all sections/divisions and furnished to the Coordination Section on the date prescribed, duly vetted by their Accounts counterparts. The Coordination Section will consolidate and furnish a report to the Comptroller and Auditor General of India(Railways) after getting the position verified by the Financial Adviser and Chief Accounts Officer. 1309. Custody, distribution and destruction of copies of Secret Memorandum of Instructions regarding Extent of Audit: All Branch Officers/Assistant Audit Officers/Section Officers are supplied with a copy each of the Secret Memorandum of Instructions regarding Extent of Audit. This book should not be treated as a personal copy and should be handed over to the successor through the charge report whenever the person to whom it is supplied proceeds on leave or is transferred to another section. A stock register should be maintained both for Railway and Civil Books of Secret Memorandum of Instructions by the Coordination Section to record the receipt and issue of books. A half-yearly stock verification of the books should be carried out in the month of January and July each year showing the position by end of December and June and for this purpose all Branch Officers/Assistant Audit Officers/Section Officers to whom the books have been issued should furnish a certificate in the proforma given below regarding physical existence of the books, to Coordination Section by first week of January and July every year. Each section should make an entry in the Calendar of Returns under half-yearly items and should collect the certificates from all the Branch Officers/Assistant Audit Officers/Section Officers attached to the section and forward them to the Coordination Section under a covering letter on the due dates. After the receipt of these certificates, the stock register along with the certificates should be put up to the Principal Director of Audit. Certificate regarding physical existence of Secret Memorandum of Instructions regarding Extent of Audit (Railways) for half-year ending June/December. -----------------------------------------------------------------------------------------"It is certified that the Secret Memorandum of Instructions regarding Extent of Audit bearing No.____________ together with correction slips is under my custody". Branch Officer/Asstt. Audit Officer/Section Officer Copies of old editions may be destroyed on expiry of the preservation period mentioned against item No.75 of Appendix II to the Railway Audit Manual. 1310. Quarterly Progress Reports on losses sent by General Manager to Railway Board: The Coordination Section should initially receive audit copies of Quarterly Progress Reports on cases of losses forwarded by the General Manager to Railway Board. The Coordination

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Section will take necessary action to refer the individual cases of losses to the Divisions/Sections concerned for comparing details of such losses with individual reports of losses received from the Railway Administration (in cases where individual reports were not received, the same should be called for from Railway Administration) and examining the Administration's files regarding action taken/to be taken. The results should be advised to Coordination Section. Cases specially marked by Deputy Director/Director/Principal Director of Audit (indicated while circulating the quarterly return) should be reviewed by the unit concerned and results submitted within 15 days to Coordination Section. The reports from the unit offices should be examined by Coordination Section and consolidated report submitted to the Comptroller and Auditor General of India, where necessary. (P.O.O.No.82 dated 8th October, 1985). 1311. Circulation of important results of audit and maintenance of Register of Important Results of Audit: In order that only important and useful Paras are submitted for Principal Director of Audit's approval for inclusion in the Register, the following guiding principles are laid down: 1. The subject matter is of interest to other Railways. 2. The subject matter may not be of interest to other Railways but is of interest to other auditing units. 3. The irregularity is of an isolated nature but the amount recovered or saving made at the instance of audit is very substantial. 4. In respect of cases which do not fall in any of the above three categories but are intended to bring to the Principal Director of Audit's notice the good work done by the staff, the case file may be submitted for perusal of the Deputy Director/Director/Principal Director of Audit. If considered necessary, a brief Para may be prepared and circulated to the staff in the particular unit only after its approval by the Principal Director of Audit. The paras proposed by the auditing sections and divisions for inclusion in the Register of Audit Activities (vide Para 474 of Railway Audit Manual) should first be sent to Coordination Section along with the relevant papers. In proposing the paras, reference to the section and file number should invariably be given in brackets under each para with suitable heading indicating the subject matter of the Para. Coordination Section, after examining the para, will submit it to the Principal Director of Audit for approval, indicating whether the Para is considered fit for circulation among the Principal Directors of Audit of other Zonal Railways and the DAI. Thereafter, the approved Para will be noted in the register maintained centrally and the papers returned to the sections concerned. A register should be maintained in which all the paras indicating the results of important objections raised in audit duly approved by the Principal Director of Audit should be pasted. A note should be kept in the register of the paras circulated to other Zonal Railways and the DAI. The register should be put up to the DAI for perusal during his visit. Extracts of important results of audit received from other Principal Directors of Audit should be circulated to all sections/divisions. Likewise, copies of all important results of audit achieved by a Branch Office/Section during a quarter should be circulated to other Branch Offices and Sections of the office.

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1312. Arrear Report: The Monthly Arrear Reports (in the prescribed form) of the Divisions and Sections should be reviewed by the Coordination Section before submission to the Principal Director of Audit. The Quarterly Arrear Reports in the prescribed form received from the Divisions/Sections should be scrutinised and consolidated by the Coordination Section. The Quarterly Arrear Report in the computerised format should be forwarded so as to reach C&AG's office by 20th of April, July, October and January. (Authority: (1) C&AG's Lr.No.1314-Audit-II/105/90 (2) C&AG's Lr.No.159-RAI/17-7/92 dt. 15.9.1993).

dt.11.10.1991,

1313. Position of outstanding Audit Objections: A statement showing number of Audit Objections issued and settled during the Financial Year should be sent by all the sections duly vetted by the respective Accounts Officers to Co-Ordination Section by 15th May in the format prescribed (Annexure – III). A consolidated statement will thereafter be prepared by COR section and after acceptance by the FA & CAO be sent to Headquarters so as to reach by 31st July of every year. (Authority: Headquarter’s Lr.No. 184/Rly./2-4/Recoveries/2004 dated 26.02.2004)

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Annexure - I (Para 1302) REPORT ON THE EFFICIENCY OF INTERNAL CHECK Proforma for Part - I Divn./ Sr. Nature of Extent of Sec. No. Arrears Arrears

(1)

(2)

(3)

(4)

Accounts Office Remarks (5)

Remarks(Comparing the position with arrears in previous Year). (6)

Proforma for Parts II and III Divn./ Sec. (1)

Sr.No. (2)

Nature of The defect (3)

Accounts Office remarks (4)

Remarks (5)

Proforma for Part IV Divn./ Sec. (1)

Sr.No. (2)

Particulars (3)

Accounts Office remarks (4)

Remarks (5)

…….

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Annexure II(Para 1303) Statistics of volume of work done in Railway Audit Offices - Divisions/Sections SECTION - I : + 1. Number of Offices, Departments etc. whose accounts are audited. 2. Number of constructions. 1. Number of Inspections : (a) Total No. (b) No. inspected i) Executive Offices ii) Stations. iii) Stores Depots iv) Workshops v) Others SECTION - II: 1. No. of letters i) Receipts. ii) Issues 2. No. of Estimates checked in a year as per Railway Audit Programme. 3. Number of completion reports. 4. (i) No. of Pay bills of Gazetted Officers (ii) No. of T.A. Bills of Gazetted Officers. 5. (i) No. of Pay bills of Non-Gazetted Officers. (ii) No. of T.A. Bills of Non-Gazetted Officers. 6. 7. 8. 9.

Leave applications of Gazetted Officers' Accounts Office only. No. of contractors bills checked in a year. No. of Labour Paysheets. No. of applications for pension, special contribution and gratuity checked in a year.

10. Provident Fund Account : (i) No. of accounts checked in a year. (ii) No. of Payments both permanent and temporary. 11. No. of Journal Vouchers and Adjustment mema. 12. No. of other bills. 13. No. of Reviews: i) Suspense Register ii) Allocation and Works Registers. iii) Exchange and Remittance Accounts iv) Others.

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14. No. of compiled accounts checked. 15. No. of station accounts (i) Local :- (a) Coaching; (b) Goods; (c) T.T.E. Returns (ii) Foreign:- (a) Coaching; (b) Goods; (c) T.T.E. Returns (iii) Refund Lists and Over-charge Sheets (iv) Compensation Claims 16. I. No. of Stores Vouchers including bills (i) Receipts; (ii) Issues; (iii) Priced Ledgers II. (i) Manufacture Accounts; (ii) Suspense Accounts 17. Workshop Accounts (i) Work Orders (ii) Labour Pay Sheets (iii) Stores Bills (iv) Time Sheets (v) Bonus and Piece Work Bills (vi) Job Costing Sheets + This should not include the number of stations whose accounts are audited. NOTE: The statistics above should provide information in two main columns as shown below: (1)

(2)

Previous Year -------------------------------------Figures as Figures after reported closing of the previously accounts including sub-col.(a)

Current Year ----------------------------------------Latest figures upto_______

(C.A.G.'s No.1113-BRS/43-62/VI dated 13th June,1963). …….

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CHAPTER - XIV INTERNAL AUDIT 1401. The Internal Audit Section will conduct a test check of the work of other sections of the office with a view to seeing whether – (a) (b) (c) (d)

the procedural rules and regulations are followed; the various registers prescribed are maintained; the returns are submitted on the due dates; and the sections function as efficient units of the office.

Internal Audit Section / Costing Cell is entrusted with Audit of charges relating to other Railway Audit Offices and inspection of P & T Audit Office. (Authority: P.O.O. No. 161 of 12.03.2007) 1402. For purpose of selection of the office/section for internal audit, the whole field will be divided into 12 units and one unit selected by the Principal Director of Audit every month. The Internal Audit of all the sections of the office will be completed in a cycle of two year as per orders of Principal Director of Audit. The Internal Audit will inter-alia consist in seeing: (i)

whether the prescribed programme of audit is being followed by the sections and that the processes of audit employed in the section ensure a complete scrutiny of the records under audit;

(ii)

the position of arrears and whether the periodical arrear reports submitted by the section concerned truly represent the actual position of arrears in that section;

(iii)

delays in the disposal of correspondence and whether these have been brought to the notice of the Branch Officer/ Principal Director of Audit, wherever necessary, through the Weekly Arrear Reports or otherwise;

(iv)

the Calendar of Returns – whether returns shown as having been sent on the dates mentioned therein were actually sent on those dates;

(v)

whether queries made by Principal Director of Audit Director/Branch Officer are being attended to expeditiously;

(vi)

the number of Draft (Preliminary) Observation Slips, Audit Notes, Inspection Reports and Special Letters issued by the section in the previous quarter and also scrutiny of some Part.II Audit Notes/Inspection Reports to see that objections meriting inclusion in Part I Audit Notes/Inspection Reports are not included in Part II Audit Notes/Inspection Reports;

(vii)

whether the files and other records of the section are maintained in a neat and systematic manner;

(viii)

whether the prescribed programme of audit itself is adequate or whether any modification or addition is necessary to enable the Principal Director of Audit to record his/her annual certificate on the accounts of the Railway;

(ix)

whether the Selection Registers and Registers of Original Audit, Current Review, Post Review etc. are maintained indicating details of the vouchers/documents

/Director/Deputy

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audited/reviewed, date of completion of audit/review and dated initials of the staff concerned; (x)

whether the Sectional Library has been maintained up-to-date by posting correction slips and orders etc. received from time to time; and

(xi)

the Register of Review of Accounts Office work – whether all the items as prescribed have been covered. Omissions should be brought to the notice of the section concerned (C.S.No.6 to Para 519 – O.M.).

1403. The Section Officer/Assistant Audit Officer/Branch Officer of Internal Audit Section should discuss the points noticed during Internal Audit with the Section Officer/Assistant Audit Officer/Branch Officer of the section inspected after obtaining the latter’s preliminary remarks. The remarks to the draft (preliminary) Internal Audit Report, after having been seen and approved by the Director/Deputy Director (in respect of sections under their direct supervisory charge), should be sent to the ‘Internal Audit’ Section within 10 days of receipt of the report. The ‘Internal Audit’ Section should then submit the report to the Principal Director of Audit for approval and the final report as approved by the Principal Director of Audit, should be issued within 15 days of the receipt of the section’s remarks to the draft report. If the remarks to the draft report are not received within 10 days as stipulated above, ‘Internal Audit’ section will proceed to issue the final report without the section’s remarks. After approval by the Principal Director of Audit, the final Internal Audit Report showing preliminary remarks of the section concerned and further remarks of ‘Internal Audit’ section against each para will be issued to the Director/ Deputy Director (in respect of the sections under their direct supervisory charge) for their perusal and onward transmission to the section concerned. Replies to the final Internal Audit Report should be sent to ‘Internal Audit’ section after getting the approval of Director/Deputy Director. 1404. Common defects noticed in a group of sections should be circulated periodically so that such defects may be guarded against in future. It is the duty of the ‘Internal Audit’ section to see that the defects noticed are remedied by the sections and that there is no recurrence of such defects. 1405. The following items may be scrutinised while doing Internal Audit of Administration Section. 1.

Check of Service Registers and Leave Accounts of employees who are due to retire within the next two years.

2.

Registers of Medical Bills/Travelling Allowance Bills/Children’s Education Allowance, Reimbursement of Tuition Fees and other claims of employees to see that they are not unduly delayed.

3.

Stamp Account.

4.

Imprest Cash Account.

5.

Settlement of dues of retired/resigned/dismissed employees.

6.

Register of advances granted to employees to see that recoveries are made correctly and in time.

7.

Scrutiny of monthly review report on the activities of Administration.

(Paras 3.24.1 to 3.24.5 – Manual of Standing Orders (Audit) and Paras 514517 of Railway Audit Manual)

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CHAPTER - XV REPORTS SECTION 1501. The Reports Section deals with the work relating to Draft Paras for inclusion in the Report of the Comptroller and Auditor General of India - Union Government (Railways). The main functions of the section are detailed below: 1502. Draft Paras: The procedure for processing of Draft Paras, the correspondence thereon with the Railway Administration and DAI is as under: In accordance with the instructions issued by the then ADAI in March, 1987, Principal Director of Audit will issue Draft Paras to the Railway Administration. The Draft Paras, duly supported by key documents, will be sent under D.O. letters confidentially to the General Manager (in duplicate), Financial Adviser and Chief Accounts Officer, Officer on Special Duty (Accounts), Railway Board and DAI. (i)

The selection of material and its processing before issuing a Draft Para must receive utmost importance and should have the prior approval of the Principal Director of Audit. The Draft Para should be processed only after a thorough investigation of the case and collection of complete factual material on the subject. As soon as an irregularity having sufficient potential for comment in the Audit Report comes to notice, it should be ensured that complete information on the subject is collected expeditiously at the initial stage itself and the case taken up at Principal Director of Audit's level with the General Manager, Financial Adviser and Chief Accounts Officer and the Head(s) of Department concerned.

(ii)

The qualitative aspect should be given more importance so that relatively less important matters of routine and repetitive nature are not issued as Draft Paras as about 80% of the material selected ordinarily finds a place in the Audit Report.

(iii)

Sections initiating the Draft Para should send to the Reports Section all key documents which should be neatly typed together with their file and other relevant papers along with the Draft Para. The Reports Section will examine the Draft Para and put up the same for Principal Director of Audit's approval. Whenever reference to other sections for collection of similar information is considered necessary, Reports Section will collect such information expeditiously and incorporate it in the proposed Draft Para.

(iv)

The last date for issue of Draft Paras is fixed by DAI each year. Normally, Draft Paras issued upto 30th September of a year will be processed for inclusion in the report on hand. It should be ensured that there is an even flow of issue of Draft Paras during the whole year. As Audit Reports are treated as confidential documents till they are presented to the Parliament, Draft Paras and correspondence thereon should also be treated as confidential.

(v)

The Railway Administration is required to furnish their replies to the Draft Paras within the prescribed time limit of 6 (six) weeks (when the Audit Objection and remedial action / corrective measures are within the control of individual Zonal

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Railway) and within 8 (eight) weeks (in case of Draft Paras involving more than one Zonal Railway). The Railway Administration's replies are required to be issued over the personal signature of the General Manager or shown as issued with his personal approval. (Railway Board's Lr.No.83-BC-Genl/20 dt.20.8.83). (Authority: Railway Board’s Lr.No. 2003/AC-II/17/3 dated 27.08.2003) (vi)

Final replies to Draft Paras should be scrutinised immediately on receipt and comments furnished to the DAI with utmost expedition, say within three or four days of receipt of replies. The replies of the Railway Administration to the Draft Para and comments of the Principal Director of Audit thereon, should be furnished to the DAI in a tabular form showing in juxtaposition the sentence of the Draft Para, Railway Administration's remarks and Principal Director of Audit's comments. The Para will be finally edited by the DAI. Paras approved for inclusion in the Audit Report will be issued by the DAI to the Railway Board. Reports and enquiries, if any, for further information at this stage should be dealt with on highest priority. Such information should, as far as possible, be supplied duly vetted by the Administration.

(vii)

DAI prepares Draft Paras on cases of irregularities noticed during the scrutiny of Railway Board's sanctions pertaining to more than one Railway or during the review of Railway Board's files connected with tenders, contracts etc.

(viii)

Occasionally, Principal Directors of Audit are required by DAI to study certain aspects of Railway working and submit a report to him. In such cases, the required information is sent to the DAI after getting it vetted by the Financial Adviser and Chief Accounts Officer. The consolidated Draft Para will, wherever necessary, be prepared by the DAI and sent to the Railway Board; copies being endorsed to the Principal Directors of Audit concerned. Further action to deal with the Draft Para will be initiated according to directives contained in letters received from the Comptroller and Auditor General of India's office.

(ix)

Draft Paras may not be treated as closed until a formal intimation is issued by the Principal Director of Audit to the Railway Administration. The Reports Section should maintain the following registers: (1) Register of Draft Paras for Railway Audit Report. (2) Register of Potential cases of Draft Paras for Railway Audit Report. (3) Register of Pending Action Taken Notes (ATNs) in respect of Paras printed in the Railway Audit Report. These registers should be submitted to the Principal Director of Audit once in

a month. (Chapter XXIII - Railway Audit Manual) 1503. Corrections to Railway Audit Report: On receipt of the published Audit Report, 'Reports' Section should check all the facts and figures given in the Audit Report in respect of cases pertaining to this Railway and bring to the notice of the DAI without any delay, any

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important corrections, that are considered necessary by the Principal Director of Audit. (Para 493 Railway Audit Manual) 1504. Pursuance of Paras included in the Audit Report: Further developments in regard to the Paras (including those cases which were centrally processed by the Comptroller and Auditor General(Railway)'s office with reference to information available in Railway Board's office files or furnished by this office) should be intimated to the DAI, duly accepted by the Administration wherever necessary through periodical reports. (Para 492 Railway Audit Manual) 1505. Circulation of Railway Audit Reports: The Reports Section will forward copies of Railway Audit Reports to the Railway Administration and also distribute copies to the Director/Deputy Director and Branch Officers of the office for information. 1506. Memoranda for Public Accounts Committee (Action Taken Note): Information furnished by the Railway Administration for preparation of notes/memoranda for the Public Accounts Committee should be verified quickly on receipt. The result of verification should also be advised to the DAI promptly; in any case not later than a week of its receipt. (Para 494 Railway Audit Manual)

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CHAPTER - XVI INSPECTIONS 1601. Objects of Inspection: The primary objects of inspection are (i)

to see that the initial accounts from which the accounts rendered by departmental officers are compiled or on which they are based, are properly maintained in the prescribed format and that financial rules and orders are being adhered to, and

(ii)

to test the degree of care exercised over the accuracy of original records by the Department authorities responsible for maintaining Accounts. At the same time, a test-audit may be applied to such accounts, vouchers, etc. as are not audited in the Central Audit or as cannot be checked adequately except at a local audit.

(Section VI of Manual of Standing Orders(Audit) and Chapter XXI of Railway Audit Manual). 1602. Distribution of Inspection work: The distribution of inspection work among the various divisions and sections is done on the general principle of "Internal check arrangements". 1.

2.

3 a) b)

c)

d)

All open line offices, Heads of Departments, Chief Engineer(Survey), Chief Cashier, Indian Railways Institute of Signal Engineering and Telecommunications, Railway Claims Tribunal and Railway Recruitment Board, Secunderabad. All Divisional Offices

Chief Engineer (Construction) Chief Signal & Telecommunication Engineer (Construction); and Chief Electrical Engineer (Construction) Offices of Divisional Engineers (Construction Units)

Internal check done by FA&CAO 'Establishment' and 'Expenditure'

Inspection done by Inspection Headquarters Section (IHQ)

Internal check done by Divisional Accounts Officer

Inspection done by respective Divisional Audit Officer.

Internal check done by FA&CAO (Construction Headquarters)

Inspection done by concerned Branch Officer (Construction)

Internal check done by Senior Accounts Officer (Construction)

Inspection done by respective Audit Officer (Construction)

Inspection Headquarters (IHQ): All the inspections of Headquarters Offices will be conducted by IHQ section through three inspection parties and each party will consist of one Asst. Audit Officer / Section Officer and one Sr. Auditor / Auditor. Inspection of one such

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party will be under the supervision of Sr. Audit Officer / Audit Officer (IHQ) who will be incharge of coordinating the work of IHQ section such as finalisation of Inspection Programme, maintenance of records, submission of returns, pursuance and settlement of Audit objections etc. Inspection conducted by the other two parties will be supervised by Sr. Audit Officer / Audit Officer (E & BHQ) and Sr. Audit Officer / Audit Officer (XHQ). In addition a Sr. Audit Officer / Audit Officer with the assistance of one Asst. Audit Officer / Section Officer will take up special cases to be processed as Draft Paragraphs. (P.O.O. No. 160 of 19.01.2007) 1603. Frequency of Inspection: Principal Directors of Audit have been empowered to fix the frequency and duration of local inspections considering the needs of each case. The DAI had laid down that the emphasis should be on more intensive audit of offices visited than to do local inspections on extensive scale i.e. unimportant offices which have no power of making major decisions having financial implications may be inspected at comparatively longer intervals but offices incurring considerable expenditure as well as major decision making offices should be audited more intensively during local inspections. Accordingly, periodicity of inspection of various offices had been fixed and given in Secret P.O.O. No.7 dated 25.3.1976 as amended from time to time and as per P.O.O. No. 148 dated 15.02.2002. 1604. Programme of Inspections: (1). Each inspection section should maintain a Master Register indicating therein the list of all executive/sub-offices to be inspected under its jurisdiction. Subsequent additions/deletions of main/sub-offices should be incorporated therein suitably from time to time and the register should be brought upto-date in January each year. For this purpose, sections will obtain from the concerned Accounts Office an authentic list of offices including sub-offices in the units under their audit purview. (2). COR Section will also maintain a Master Register indicating therein the list of all main/sub-offices to be inspected, as advised by the Inspection Sections. The additions/deletions intimated by the sections will be incorporated in the Master Register of COR Section against the unit concerned. (3). The annual inspection programme in the proforma as given in Annexure I consisting of two parts - Part I showing a statement of additions/deletions of main/sub-offices and Part II showing annual inspection programme for the year - should reach COR Section by 15th December every year for obtaining Principal Director of Audit's approval. For this purpose, the package designed by EDP, viz., APMS, is to be utilized by each section for AIP and MIP also. (4). Programme of inspection for the ensuing year should be prepared with reference to this Master Register and after consulting the previous year's inspection programme and Accounts Programme. The provisions of Para 425 of Railway Audit Manual should be borne in mind while drawing up the inspection programme. As far as practicable, a minimum period of 6 months should elapse between the inspections by Accounts and Audit whenever the same office is due for inspection both by Accounts and Audit during the same year. The man-days allotted for each inspection should be those approved by the Principal Director of Audit. (5). As the inspections are to be carried out in the month as per the annual programme already approved by the Principal Director of Audit, the details regarding date of commencement of the inspection, composition of the party etc. may therefore be decided by the Branch Officers and submitted Group Officer each month. However, the tour programme

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of the Branch Officer drafted to the inspections involving tour to outstations should continue to be submitted in advance to the Principal Director of Audit through the Group Officer for approval. (A)

All deviations / additions / deletions etc. dealing with Annual Inspection Programme are to be invariably routed through the COR section including the monthly tour programmes for submission to PDA. (Au/COR/I/Vol. VI dated 30.04.2004). All the Inspections as approved by the Principal Director of Audit, to be done in an year are completed without fail by 31st March of the relevant year.

(B)

A Compliance Report in respect of completion of offices programmed in each quarter vis-à-vis the offices approved under AIP should be sent to COR section for consolidation of data to be sent to Headquarters, by 1st week of following month of the quarter. (Authority: Auditing/COR/X/1-A/Vol.II/179 dt.18.9.92) (Au/COR/Audit Plan/2003-04 and Au/COR/I/Vol. VI dated 30.04.2004)

(6). The time allowed for various inspections and composition of the inspection party are indicated in Revised periodicity of Inspections in terms of P.O.O. No. 148 dated 15.02.2002 and Anneuxre-II. This is not an exhaustive list of all offices, but shows the various categories of offices which generally exist in a unit. If the Branch Officer feels that any other office is required to be added, he should send a detailed note indicating the number of days justified for inspection of main/sub-offices for Principal Director of Audit's approval. The inspection programme should be drawn up on this basis. The time allowed is only a guide-line. Where the work load justifies, the time can be increased normally with the prior approval of Principal Director of Audit and in emergent cases with his ex-post facto approval. Where the time allowed is too much, compared with the actual work load, the Branch Officer is expected to cut down the time allowed suitably and inform the Principal Director of Audit. (7). In order to keep an element of surprise, surprise verification of cash with cashiers may be done in any month of the year and need not be postponed till the year ending. Besides, cash and accounts of one cashier at Headquarters and one cashier at outstation (i.e. while travelling on duty) should be verified to the extent prescribed. 1605. Procedure for taking up Inspections: Probable date of commencement of inspection will be intimated to the Head of the Office to be inspected and the Accounts Officer concerned atleast a week in advance. No such intimation is required in regard to surprise inspections. The month of accounts to be test-checked during the inspections will be selected by the Branch Officer and all the paid vouchers/bills required for inspection should be obtained from the Accounts Office. The items to be seen during inspection will be recorded in a register and items for original audit by the Branch Officer/Asstt. Audit Officer/Section Officer will be marked by the Branch Officer in-charge. Asstt. Audit Officer/Section Officer in-charge will then allot the remaining items among the Senior Auditors/Auditors comprising the inspection party. At the conclusion of the inspection, the person concerned should initial in ink against the items audited by each of them in the register. Vouchers/documents, if any, not made available for audit during inspections shall be clearly brought to the notice of the Railway Administration by including the same in the Inspection Report.

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1606. Intensified Inspections: Assistance from I.I.Cell will be provided for manning the inspections of offices identified as important. Such offices are listed in the Annexure No.___. This cell will function under the control of the Deputy Director holding supervisory charge of COR Section. The programme of inspection for a month may be sent sufficiently in advance, but not later than 15th of the previous month, indicating the names of the identified offices for which assistance is required, No.of days of inspection of party, the proposed dates of inspection and the period of supervision required to be done by the Branch Officer. The inspection programmes received from the Units will be examined by COR Section and assistance from I.I. Cell will be provided to the maximum extent possible with the approval of Deputy Director/Director holding supervisory charge of COR Section. The Branch Officer/I.I. nominated to supervise an inspection will manage the entire inspection of that office and to this extent, the regular Branch Officer would get relief. The services of the Asstt. Audit Officer(I.I.) deputed for assisting the regular inspection party of the concerned unit should be utilised only for doing non-personnel portion of the inspection. The Branch Officer/(I.I.), who has been nominated for supervision of the inspections, should finalise the Inspection Report in all respects after discussion with the Executive concerned within the allotted time. If discussion could not be held for any reason, the report should be finalised and the fact of not holding the discussion should also be mentioned suitably in the Report. The draft Inspection Report should be categorised into Special Letters/Part I/Part II. Those fit for Part I/Special Letter should be arranged to be suitably drafted and handed over by the nominated Branch Officers(I.I.) to the Branch Officer of the unit concerned for submission to Deputy Director/Director/Principal Director of Audit and further necessary action. The Branch Officers supervising the inspection should clearly indicate the items to be done by the Asstt. Audit Officer(I.I.) vis-à-vis the regular Section Officer/Asstt. Audit Officer. Cases, if any, noticed during the inspections which requires further investigation at Headquarters will also be examined by Intensified Inspection Section on return to Headquarters. Branch Officers/Asstt. Audit Officers(I.I.) will also attend to any special work, investigations etc. that may be entrusted by Deputy Director/Director/Principal Director of Audit. After completion of each inspection, a note bringing out important and interesting points brought out by the Branch Officer/Asstt. Audit Officer(I.I.) during local inspection should be submitted to Principal Director of Audit. The Branch Officers/Asstt. Audit Officers(I.I.) deputed for inspections should send to COR Section by 15th of the following month, a copy of monthly report submitted to Deputy Director/Director/Principal Director of Audit indicating important points noticed and taken up by them during their inspections. If the objections taken up are not considered as important, a 'NIL' report should be sent to COR Section. (Authority:- P.O.O. No.121 dt.28.8.1991, P.O.O. No.125 dt.11.2.1993).

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1607. Branch Officers' supervision of inspections: The quantum of Branch Officers' supervision of inspections will be as approved by Principal Director of Audit. (Para 429 of Railway Audit Manual) 1608. Frequency of Inspection of Sub-Offices: All sub-offices of Engineering, Electrical and Mechanical Departments and Signal and Telecommunication as mentioned in Part. I statement will be done bi-annually and the inspections have to be completed with the existing staff strength. The composition of party for the above sub-offices excluding AENs, AMEs and AEEs will be SO/AAuO and Ar./Sr.Ar. (Authority: Au/COR/I/Vol. VI dated 30.04.2004) One sub-office under each of the sub-divisional offices like Assistant Engineer's office should be inspected along with the Divisional Office. Where there are no sub-divisional offices(e.g.) Divisional Railway Manager(Operating), Divisional Railway Manager(Commercial) two subordinate offices should be inspected along with the inspection of the main office. When, however, the inspection of the main office reveals irregularities in the accounts of these sub-offices, the inspecting officer may consider taking up some more sub-offices for inspection, with the approval of the Principal Director of Audit. NOTE: Health units/Railway Hospitals under Asstt. Medical Officers may be treated as suboffices for the purpose of determining the periodicity of their inspection. 1609. Points to be seen during inspections: Paras 431 to 439 of the Railway Audit Manual contain the important points to be seen during the inspection of various offices. Detailed lists of items to be seen during the inspection of various offices are given in Annexure IV to this chapter. Any other points coming to notice during inspection should also be examined in detail. Besides this, any special points selected by the Principal Director of Audit, Director/Deputy Director or other Branch Officers should also be noted in the Register of points to be seen during inspections and such points should be looked into and action taken thereon. 1610. Maintenance of detailed records of documents audited during inspection: In order to enable fixation of responsibility at a subsequent date for any failure of checks during inspections, a detailed record of documents checked during inspection should be maintained (see Para 1605). Every member of the Inspection Party (including the Branch Officer) should record the details of the documents audited pertaining to each item of work done by him in a separate list. These details should be complete as far as possible. Details to be recorded in respect of some of the items are given below: Item of work i) Service Registers ii) Leave accounts of sub-ordinates iii) Pay Bills iv) Advance of Pay

Particulars to be recorded Name and designation of the employee and the period of service checked. -doName, designation, month & amount -do-

369

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v) Original fixation / re-fixation of Number, date and amount Pay of NGOs other than Accounts Department vi) Rent Register / Rent Rolls Name, designation, station, under whom employed and amount vii) Contractor's Bills Number and date(Au6 and Co7), contract/work order No. and date, Name of work, Name of contractor and amount viii) Forms and Miscellaneous Bills Number and date, amount, name of firm and particulars ix) TA Bills x) Mileage Bills xi) Pay Orders Number, date and amount xii) Adjustment vouchers xiii) Tenders and Agreements: Particulars of work or supply, amount of accepted (a) Accepted tenders tender, and name of supplier (b) Summaries of tenders

Particulars of work or supply, name of accepted tenderer, and amount of accepted tender.

xiv) Payment under WC Act xi) Detailed records of items checked during inspection of Station accounts should be maintained in the proforma attached to the list of items to be seen during the Traffic Inspections. The lists should be signed in full by the persons concerned, i.e. Branch Officer/Asstt. Audit Officer/Section Officer/Senior Auditor/Auditor and filed. The lists should be preserved for a period of 15 years. (Para 429 of Railway Audit Manual). 1611. Issue of Inspection Reports: During the course of inspection, as and when irregularities are noticed, they should be communicated to the office inspected through draft (preliminary) observation slips for necessary action/remarks. These slips should be written up in triplicate, serially numbered for each office inspected and signed by the Branch Officer/Asstt. Audit Officer/Section Officer conducting the inspection. Two copies thereof should be handed over to the office inspected under proper acknowledgement on the triplicate copy. On the basis of draft (preliminary) observation slips issued and remarks thereon offered by the office inspected, the inspection report should be written up. Draft Inspection Report will be discussed by the Section Officer/Asstt. Audit Officer/Branch Officer with the Departmental Officer, as the case may be. Objections which are finally settled on which no further action is required, will be dropped and the remaining objections taken up through Special Letters, Part I and Part II Inspection Reports in accordance with the instructions contained in Para 456 of Railway Audit Manual. In vie of introduction of Ranking system by Headquarters office, it has been decided by Principal Director of Audit that special letters arising out of Inspections are to be first included in the Part. I AIR and

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issued. By adopting the procedure special letters also earn points under the Ranking systems. Subsequently these paras may be converted as special letters and issued accordingly by closing the para in Part. I AIR. The Branch Officer should exercise great care in the classification of the Paras for the purpose of Part I and Part II Inspection Reports. Irregularities which were pointed out during the previous inspection, but which have not been rectified and are noticed during the subsequent inspections also should be highlighted in the current reports. When the Audit party inspects an office/station, it should take along all previous outstanding Inspection Reports and Special Letters relating to that office/station and review the position. Wherever action is found to have been taken, the Paras may be closed even if formal replies might not have been sent. Objections on which adequate action has not been taken and which are still considered relevant and important should be updated and a fresh Para may be included in the latest Inspection Report. The review of old outstanding objections should be included in one of the important items to be done during inspection of all Offices/Stations. Outstanding amounts yet to be recovered should be got entered in the Objectionable Items Register while agreeing to close the objections. During the subsequent inspection/review of Accounts Office work, it should be checked whether all the recoveries agreed to be made are effected. While drafting the Inspection Reports, the following preamble should be incorporated in terms of Para 6.1.20 - Part I of Manual of Standing Orders (Audit). a)

Introductory.

b)

Outstanding objections from previous reports in brief, and

c)

Schedule of persistent Irregularities.

Part I Inspection Reports/Special Letters shall be issued only with prior approval of Principal Director of Audit. While approving Part I Inspection Reports for issue, important Paras (which have scope for being developed into draft paras), specially identified by the COR Section and approved by the Principal Director of Audit, shall be advised to Branch Officers. Closure of all such Pt.I paras should be considered only after obtaining the approval of Principal Director of Audit. All other paras where the Administration has taken appropriate action can be closed by the Branch Officers themselves. Special Letters should be closed only with the prior approval of Principal Director of Audit. Copies of the Special Letters Category 'A' are to be endorsed to Branch Officer(Reports), P.A. to Deputy Director/Director besides COR Section and to concerned Headquarters Section, when required. COR Section will maintain a record of such Special Letters and submit the Register by 10th of every month to Principal Director of Audit through Deputy Director/Director. Final draft inspection report should be submitted to Principal Director of Audit within 7 days of completion of the inspection. (Authority: 1) Au/COR/I/Vol.III/33, dt.13.4.1988, 2) Au/COR/I/Vol.IV/13 dt.13.4.1992 as corrected; 3) )Au/COR/I/Vol. VI dated 09.12.2004) A ‘Top Sheet’ as indicated in Annexure VIII, IX, X & XI as applicable is to be submitted by Branch Officer to the G.O. concerned and after completion of inspection duly explaining the reasons for issue of ‘NIL’ reports, if any. (Para 9.3 Report of the Committee on RANs)

371

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The Inspection Reports (Part I/Part II), Special Letters etc. should be issued under a covering letter (format given in the Annexure V) to the Executive Officer concerned with copy to the Accounts Officer and authorities concerned within a maximum period of one month from the date of completion of inspection. Any delay in the issue of inspection reports should be reflected in the monthly arrear report explaining the reasons therefor. For each office inspected, the duplicate copies containing the remarks of the office inspected and triplicate copies of draft (preliminary) observation slips should be filed in separate bundles. 1612. Register of Progress of Inspections: The Register of Progress of Inspections should be maintained as prescribed in Para 426 of Railway Audit Manual and submitted to Branch Officer and Deputy Director/Director monthly. (P.O.O. No.99 dated 11.2.1987). 1613. Review of Major Works: The works under Review of Major works have been categorized into (1) Those costing over Rs. 5 crores and (2) works costing between Rs. 1 crore and Rs. 5 crores - works under first category (above Rs. 5 crores) have to be taken up when expenditure is 25% of the total cost review to be followed by subsequent 3 reviews when expenditure on that week exceeds 50%, 75% and 100% of the sanctioned cost. Works under category (2) are to be reviewed in two stages after actual expenditure exceeds 50% and 100% of sanctioned cost. Composition of party and duration of inspection is as under. Category 1 2

Party 2 A.Au.O.s/S.O. / 1 Sr.Ar./Ar. 1 A.Au.O. / 1 Sr.Ar.

No. of days 5 days

B.O.s Supervision 5 days

5 days

3 days

(Authority:Para 4.2.2 of Report of the Committee on Railway Audit Norms) In addition, one or two COMPLETED WORKS selected by Principal Director of Audit should also be reviewed every year. These reviews are treated as inspections and should be included in the inspection programme. (CAG's Lr.No.46-RAI/17-9/92 dt.11.1.1993). (b) A major work may be deemed to be completed only when the work is completed in all respects and all adjustments including payment of contractors' bills, adjustment of stores debits etc. relating to the work are made and completion report thereof drawn up. Till then it should be treated as work in progress. In cases where the review could not be completed in all respects due to nonpassing of contractors' bills etc.) all such pending items may be noted and reviewed at the time of next inspection of the major work. List of items to be checked during the review of major works is given in Annexure VI to this Chapter.

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1614. Check of royalty paid by Book Stall Contractors: Book stall contractors pay royalty to the Railway on the basis of the sales duly certified by their Auditors. During the inspection of the Chief Commercial Manager's office, the royalty paid by the book stall contractors should be examined to ensure that it is in accordance with the agreement entered into by the Railway with the contractors and on the basis of the sales figures certified by the Firm's Auditors. 1615. Verification of cash in hand with the Chief Cashier, Divisional Cashier and Cashiers during surprise visits: In accordance with the instructions contained in Para 61 of Secret Memorandum of Instructions regarding Extent of Audit, the cash in hand with the Chief Cashier, Divisional Cashier/Cashier may, during surprise visits, be reconciled with the cash book at the discretion of the Principal Director of Audit preferably once a year. The procedure detailed below should be followed for the verification of cash. The physical verification of cash with the Chief Cashier, Secunderabad and Regional Cashiers need not be conducted. It should, however, be ensured during the periodical inspections of the Chief Cashier's office/Regional Cashier's offices that the internal check authorities have carried out a verification periodically as prescribed and that the results of such checks have been indicated on record. The imprest cash with the Chief Cashier/Regional Cashiers may be verified during the periodical inspections. The surprise verification of cash with the Divisional Cashiers and Cashiers at outstations should be carried out to the extent prescribed.(Secret P.O.O.No.10 of 6.11.1985). Whenever verification of cash is done, the cash should be counted by the Railway official who is incharge of the cash and not by the Audit staff. The result of the verification should, however, be recorded in the Cash Book by the Branch Officer/Asstt. Audit Officer/Section Officer supervising the verification and the same should be got attested by the departmental official concerned. (Para 369 of Railway Audit Manual). 1616. Traffic Audit Inspection: For the purpose of Audit and Inspection, the stations are classified as Very Big, Big, Major and Minor on the basis of the earnings of the stations as well as other important factors like volume and complexity of traffic. Big stations are divided into different units like passenger, parcels(inward/outward), goods(inward/outward) and each unit is treated as Very Big, Major or Minor station and selected for inspection according to the extent prescribed. The programme of the Traffic Audit Section should be kept confidential. Before recommending names of stations for Principal Director of Audit's approval, the special features of the station such as the existence of sidings, seasonal traffic, booking of special commodities, earnings and any special facilities afforded should be taken into account. The position of missing returns may be ascertained. The latest Travelling Inspector of Accounts' reports should also be referred to. These points should be brought out in the note submitted to Principal Director of Audit for making selection of stations. As far as possible, stations having some special features such as sidings, heavy pilgrim traffic, heavy parcels or goods loading should be selected for check.

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The checks conducted during station inspection generally follow the pattern of checks conducted by the Travelling Inspector of Accounts. The general and other items to be seen during the inspection of stations are given in Annexure VII(i) to VII(iv) to this chapter. The list of items is not, however, to be taken as exhaustive. In addition to the points already being looked into during Station Inspection, the audit party should watch closely the general working of the station and if any possible leakage of revenue is suspected due to almost regular misdeclaration of consignments or ticketless travel, a surprise check of the station by the Railway Administration may be suggested. The system of allotment of wagons could also be reviewed to see that covered wagons are not demanded for non-perishable materials, which sometimes lead to Railway's providing open wagons for perishables, accepting liability for damages enroute. The handling contracts and their execution and recovery of siding charges should be intelligently checked during local inspection. The refund of fares and freight and payment of compensation claims should be scrutinised with reference to the documents of both outward and inward stations. The scope of local audit should also include the check of claims originating at the station locally inspected. For this purpose, station inspection parties may send a list of claims cases noted by them to the Traffic Audit Section, who should scrutinise these cases in detail with reference to the local information furnished by the Traffic Audit Inspection Section. In respect of transhipment points, handling bills may be reviewed by sending local audit party at the said point, besides the checks exercised in Central Audit. Some stations which are transhipment stations should be selected for local audit every year. Such audit parties need not always be supervised by Branch Officer. As regards review of handling bills relating to transhipment sheds located away from the stations, they should be included in the list of stations for the purpose of selection for audit and inspection. While check of accuracy of accounts has to be done, importance should be given to other spheres of transportation activity of Railways, such as wagon placement timings and recovery of haulage charges, routing of traffic, claim position vis-à-vis prescribed packing and handling procedures etc. Remarks of the Station Master should be obtained on the spot against each draft (preliminary) observation slip. b) There shall be a Headquarters cell in the Traffic Audit Inspection Section which will attend to all items of Headquarters work pertaining to the Inspection section, such as comparison and issue of approved Inspection Reports, all correspondence relating to the Inspection section, maintenance and submission of Registers and Returns etc. This cell will put up papers to the Branch Officer(Traffic Audit Inspection) whenever they are available in Headquarters and at other times to the Branch Officer(Traffic Headquarters). The Headquarters Inspection Cell shall ensure that Inspection Reports, Special Letters, outward reference letters etc. are typed and issued within the prescribed period after they are finalised by the inspecting Branch Officers. Typed Part I Inspection Reports/Special Letters etc. shall be signed by the Branch Officer(Traffic Audit Inspection) whenever they are available in Headquarters and by the Branch Officer(Traffic Audit Headquarters) on other

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occasions. Part II Inspection Reports will be signed by the Asstt. Audit Officer of Headquarters Inspection Cell. On completion of each inspection, the supervising Branch Officer should put up to the Principal Director of Audit a note of important objections noticed in respect of which it is desirable to undertake a comprehensive review. Such reviews, if approved by the Principal Director of Audit, will be under-taken by the Branch Officer(Traffic Audit Headquarters). A "Top Sheet" vide Annexure VIII should invariably be submitted by the Branch Officer to the Group Officer concerned, after completion of the inspection duly explaining the reasons for issue of "NIL" inspection reports, if any (Reference to Para 9.3 of Report of Committee on RANs) 1617. Inspection by Accounts Office: The Inspection Section should see that appropriate instructions have been laid down for the conduct of inspections by the Accounts Office, duly providing an element of surprise in cases where necessary. It is also to be ensured that the Accounts Inspection staff carry out the prescribed programme. Filed Inspection Reports of the Accounts Department should be reviewed to the extent prescribed.

375

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Annexure – I (Para 1604) STATEMENT SHOWING THE ADDITONS TO/DELETIONS FROM THE LIST OF MAIN/SUB-OFFICES COMPARED WITH THE LIST OF OFFICES TO BE INSPECTED IN THE PREVIOUS YEAR Name of Main/Sub-Office

Date of Opening

Date of closure

Remarks

Part II - Proforma for Annual Inspection programme of__________________________ for the year _________________________ S.No. Name of the Office

Periodicity of audit inspection

(e.g.) Dec 2000/Jan 2001 1. C.P.O. Annual

When last inspected by Audit/ Accounts

Duration of inspection

Composition of Inspection party

Whether coming under scheme Of I.I.

9/99 NA &10/99

25 days

2 SOs/AAuOs Yes & 1 Ar.

Extent of G.O.’ supervision as per Annexure --------------Main SubOffice Office 13 days (50%)

SubOffices to be inspected

-

Feb/Mar 2001 2. Passes issued by " 11/99 NA 4 days 1 S.O. & No Nil FA&CAO, 2 Ars. Imprest etc. NOTE: 1) The inspections of all offices to be done in each month should be grouped and indicated as per example given above. Percentage of Gazetted supervision adopted should be indicated in brakets. Secret inspection like Surprise Check of Cash Office, Cashier's account etc. should not be exhibited in the copy furnished to the Accounts Office.

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ANNEXURE - II (Para 1604) REVISION OF DURATION OF STANDARD TIME ALLOWED FOR VARIOUS INSPECTIONS AND COMPOSITION OF THE PARTY C.S. No. 2 of 04/2002 ****** S.No. 1.

Name of the Inspection Headquarters

Duration Number of days

General Manager's Office including CPRO, Vigilance and Statistics - Personnel Non-Personnel

4 18

2.

CME's Office - Personnel Non-Personnel (including sub-office)

4 42

3.

Chief Engineer(Open Line) - Personnel Non-Personnel (including sub-offices)

4 50

4.

Chief Operations Manager including Power Branch Personnel Non-Personnel

4 50

5.

Controller of Stores - Personnel Non-Personnel

4 44

6.

CSTE - Personnel Non-Personnel

4 29

7.

CCM -Personnel Non-Personnel (including sub-offices)

4 36

8.

CEE - Personnel Non-Personnel (including sub-office)

4 32

9.

CMD - Personnel Non-Personnel

8

10.

Chief Cashier including DPM Headquarters Office Personnel and Non-Personnel

10

11.

CSC - Personnel and Non-Personnel

8

12.

IRISET -Personnel and Non-Personnel

15

13.

CPO - Personnel and Non-Personnel

25

14.

Passes issued by FA&CAO, Imprest, dead stock etc. of FA&CAO's office

5

15.

Zonal Training Centre

8

16.

Railway Claims Tribunal - Personnel and Non-Personnel

8

17.

M.D.(RH)/LGD - Personnel and Non-Personnel

8

377

Ch.XVI - Page 14 of 51

18.

Staff Canteens of Accounts, FA&CAO and IRISET Personnel and Non-Personnel

24

19.

Commissioner of Railway Safety - Pass Account and Passes issued to be checked

2

20.

Railway Recruitment Board Personnel and Non-Personnel

8

21.

R.P.F. Training School, Maula Ali Personnel and Non-Personnel

8

22.

Railway Degree College - Personnel and Non-Personnel including subsidized Hostel at Bhoiguda, Secunderabad as sub-office.

11

DIVISIONS: 1. SR. DEN - Personnel Non-Personnel AEN SE(P.Way) or SE(Wks) 2.

4 8 3 2

DEN - Personnel Non-Personnel

4 8

AEN SE(P.Way) or SE(Wks)

3 2

DME(Power) - Personnel Non-Personnel

4 8

Check of mileage bills(loco staff)

16

DME(Carriage & Wagon) Personnel Non-Personnel

4 8

DOM(Operating) including DSO Personnel Non-Personnel

4 8

Area Manager Y.M.

3 2

Check of mileage bills of running staff

16

Sub-offices - SS, SM

2

6.

DEE - Personnel Non-Personnel Electrical foreman, Train lighting inspector

4 6 2

7.

DSTE - Personnel Non-Personnel Signal Inspector

4 6 2

3.

4.

5.

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Ch.XVI - Page 15 of 51

8.

DCM - Personnel Non-Personnel

4 6

9.

Divisional Security Commissioner Inspector, Sub-Inspector

7 2

10.

Sr.MS/DMO ADMO Sanitary Inspector

5 2 1

11.

DPO(Proper)

7

12.

Catering Units

4

13.

Junior colleges

3

14.

Upper Primary schools

2

15.

Primary School

1

16.

Check of passes issued by SR.DAO Imprest account etc. including DPM

4

WORKSHOP AND STORES INSPECTIONS 1.

Shop Inspections

3

2.

Dy.DME (Shop)'s office

9

3.

SEE(Workshop)

7

4.

Dy.CSTE(Shops)

9

5.

Press Superintendent - Personnel & Non-Personnel

12

6.

Bridge Engineering Workshop

7

7.

DCOS(Personnel)

8

8.

DCOS(Non-Personnel)

8

9.

Departmental Canteen

5

10.

Passes issued by SAO/W&S check of imprest etc.

4

11.

Stores depots

3

12.

P.Way/Diesel Depots

5

CONSTRUCTION UNITS 1.

CE(Personnel and Non-Personnel)

12

2.

Dy.CE/DEN(Construction)

5

AEN(Construction) SE(Wks)

2 2

Dy.CE/DEN(Survey) SE(Wks)

5 2

3.

379

Ch.XVI - Page 16 of 51

3A.

CSTE/C/SC

4.

Sr.DSTE/DSTE(Construction) ASTE(Construction) SE(Construction) Dy.CEE/Wks/SC

5 2 2

5.

DEE(Construction) AEE(Construction) EF(Construction) Dy.CSE/DEE/GC/SC Dy.CPO/Wks/SC Dy.COM/GC/SC Dy.COS/C/SC

5 2 2

6.

Passes issued by SAO(Construction) Check of imprest, dead stock etc.

4

COMPOSITION OF INSPECTION PARTY a) Inspection of Executive Offices and Offices of Heads of Departments i)

Personnel matters

One Asstt. Audit Officer and One Auditor

ii)

Non-Personnel matters

One Asstt. Audit Officer with one/ two Auditors

b) Minor Executive Offices

One Asstt. Audit Officer and one/ two Auditors

c) Important offices falling under the scheme of intensified inspections

Two Asstt. Audit Officers and one Auditor

d) Station Inspections i)

Very Big stations

Two AAuOs and one Auditor

ii)

Big Stations

1 A.Au.O. / 1 Ar.

iii)

Major stations

One AAuO and one/two Auditors

iv)

Minor station

One AAuO with one/two Auditors

e) Workshop(Individual shops in a Workshop)

May be conducted by 2 Auditors and supervised by AAuO.

f) Stores Depot: i) Receiving and despatching section

One AAuO and two Auditors

ii) Depots manned by ACOs/DSK g) Surprise verification of cash i) Verification of cash with Travelling Cashier

One AAuO and one Auditor

380

Ch.XVI - Page 17 of 51

ii) Verification of cash with Divl. Cashiers/cashiers at Headquarters.

Audit Officer, AAuO and one Auditor

Note: 1) The offices manned by Assistant Officers functioning as Executives with Powers similar to Executive Officers/Divisional Officers with separate Budget allotment are to be treated as important offices for the purpose of inspection. 2) The inspections in respect of sub-offices viz., SE(P.Way), SE(Wks), VRR, CTXR and minor executive offices such as Hospitals under AMOs, Railway Schools, depots manned by ACOs/DSKs, receiving and despatching section and individual shops in a Workshop may be conducted by Section Officer/Asstt. Audit Officer and supervision by Branch Officer is not necessary.

381

Ch.XVI - Page 18 of 51

Annexure III (Enclosure to Para 1606)

LIST OF IMPORTANT OFFICES FOR WHOSE INSPECTIONS ASSISTANCE IS PROVIDED BY INTENSIFIED INSPECTION CELL

Section

Railway Office

1. IHQ

CPO CSTE & CSTE/MW COPS,CSS,CFTS,CPTS CCM,CCO,CM & SS CEE,CESE COS CE(OL),CTE,CGE,CBS,CSE CME,CWE,CRSE

25 24 25 24 16 33 33 25

2. DIVISIONS SC:HYB:UBL GTL & BZA

SR.DENs, DENs SR.DME, DME SR.DOSs & DOSs

12 each

"

DRMs, SrDEEs,DEEs (Proper), SrDCMs,DCMs, SrDSTE, DSTEs

9 each

"

CAOR/SC including CE-I & II

24 each

"

DENs,DEEs,DY.CEE(HQ)/ SC, SrDEN, Dy.CSTE

5 each

"

CWM/LGD Dy.COS/M&E/LGD CWM/S&T/MFT CWM/UBL

9 12

" "

3. CON UNITS SC,BZA, RJY

5. W&S Units

No.of days Periodicity Annual " " " " " " "

382

Ch.XVI - Page 19 of 51

Annexure IV(Para 1609) Part I(A) - Items common to all Heads of Department Offices: I)

Sanctioned strength and distribution of staff of various categories according to percentage laid down by the Board (All Heads of Departments)

II)

Special Works, Trials and experiments carried out under the orders of the Railway Board or other authorities(All Heads of Departments).

Part I (B) - Special points to be seen during the inspection of Heads of Department Offices. (A) Office of the General Manager. 1) 2) 3) 4) 5) 6)

Log book of office staff cars and petrol account. Review of sanctions of grants to outsiders. Issue of Passes to quasi-railway departments and other than Railway employees. Review of sanctions issued by General Manager and Sanctions Register. Allotment of Officer's Bungalows. Review of the fixation of out-turn for payment of special pay to operators of various machines. 7) Travelling Allowance Bills of members of Advisery committees on Railways. 8) Progress Report of Work Study cell. (B) Office of the Chief Public Relations Officer. 1) Advertisement Bills payable by Railways 2) Charges for public advertisements exhibited at stations, Yards, Trains and Time Tables etc. due to Railway. 3) Examination of the revision of rates charged to public. 4) Tenders and Contracts. 5) Charges incurred in connection with the publication of weekly news items. 6) Hospitality Fund expenses and furnishing statements of expenditure to the General Manager. 7) Review of the Administrative Reports. 8) Expenditure on brochures "South Central Railway News Bulletin" and staff letter etc. (C) Office of the Chief Engineer. 1) 2) 3) 4) 5) 6)

Special works, trials and experiments carried out under the orders of the Railway Board etc. Work Orders. Payment to Municipalities. Procurement of sleepers and accounts of sleepers Tenders and contracts Standard Schedule of Rates(SSRs)

(D) Office of the Chief Commercial Manager. 1)

2) 3)

Review of statistics compensation claims including the cause-wise and commoditywise statements of claims received from the Railways arranging payment of the claims and reports furnished to Railway Board. Refund of over charges. Concession to public

383

Ch.XVI - Page 20 of 51

4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18)

Remission of wharfage and demurrage Licencing of land, cycle stand etc. Licensing of stalls Accountal of salable tariffs Test weighment of newspapers parcels Handling contracts Street delivery contract and out-agency contracts Siding charges Debit Register and Excess Fare Ticket Register. Review of Headquarters Travelling Ticket Inspection Section. Review of the earnings of the Ticket checking examination. Payment of conveyance allowance to honorary magistrates and their accountal Review of the working of Marketing and Sales Organisation. Review of Station to Station rates for attracting goods traffic. Awards given by the Railway Rates Tribunal.

(E) Office of the COM: 1) 2) 3) 4) 5) 6) 7) 8)

Hire and haulage charges account with IRCA Saloons of high officials Postal Vans Special Trains Utilisation of Special Type of Wagons Railway Accidents - Reports and payment of compensation Agreements entered into with the contractors for printing Time Tables and Maps. Fixation of commission for sale of time-table by book stall keepers.

(F) Office of the Chief Electrical Engineer 1) Special works, trials and experiments carried out under the orders of the Railway Board etc. 2) Work Orders. 3) Review of agreements regarding purchase of Electricity from outside sources. 4) Fixation of rates for the supply of Electric emergy to Railway Employees and outsiders. 5) Tenders and Contracts. (G) Office of the Chief Medical Director 1. Purchase of medical stores 2. Stock ledgers of the Medical Depot attached to the CMD's office. 3. Charges paid to private/Government sanatoria for the treatment of Railway servants for T.B. 4. Expenditure on Family Planning 5. Acceptance of gifts by Railway hospitals and accountal thereof. (H) Office of the Controller of Stores. 1. Examination of Indents for Stores 2. Scrutiny of sanction to quantity and purchase through programme indents placed on the DGS&D. 3. Disposal of overstock and surplus stock 4. Operation of items covered by ISD for schedule demands

384

Ch.XVI - Page 21 of 51

5. Landing Bills 6. Receipt custody and disposal of samples 7. Review of reasonableness of indents and end use of stores specially items costing Rs. 50,000/- and above. (I)

Office of the Chief Mechanical Engineer.

1) Special works, trials and experiments carried out under the orders of the Railway Board or other authorities. 2) Work Orders. 3) Reports relating to incentive scheme and working of the same. 4) Rolling stock account and proposals for additions and renewals; Delay in installation and commissioning of Machinery and Plant. 5) Postal Vans 6) Utilisation of special type of wagons, and maintenance thereof 7) Introduction of dieselisation and working of the Diesel Engines (J) C.S.T.E. 1) Special works, trials and experiments carried out under the orders of the Railway Board etc. 2) Work Orders. 3) Reports relating to incentive scheme and working of the same. 4) Working of the Microwave Communication System. 5) Bills for hire of P & T Wire NOTE: (Other items included under the various Divisional Offices should also be looked into during the inspection of the HOD offices concerned). Part I - (C): (A) Divisional Railway Managers (Operating and Mechanical). 1) 2) 3) 4) 5) 6)

Mileage bills of Loco staff Mileage bills of Traffic staff Payments of out-turn allowance to Signallers and Teleprint Operators. Payment of Cash Awards, if any. Agreement with contractors for coal handling work and miscellaneous work Recovery of charges for engine hire, wagon repairs, supply of water or any other service tendered to other Government Departments, local bodies and other departments of Railway 7) Coal Survey Sheets 8) Working of Imprest system in Loco and C&W sheds. 9) Register of relieving staff. 10) Accounts of Transportation Workshops, if any. 11) Saloons -allotment and movement of 12) Postal Vans and Postal Bills 13) Account of first-aid equipment 14) Mileage run by locos between successive POHs 15) Incidence of hot axles 16) Fuel consumption Statements 17) Hire of locomotives

385

Ch.XVI - Page 22 of 51

18) Idle Machines 19) Sale of Cinder to employees and correctness of fixation of rate thereof. 20) Guards and Drivers links 21) Scrutiny of Trip rations for coal and oil issued to drivers. Loco Sheds and C & W Depots: 1) Verification of Coal handling bills with shed documents(Loco shed) 2) Shed returns(T.323) comprising: i) ii) iii) iv) i) ii) 3) 4) 5) 6) 7)

Exchange book(G.210 F) Stock Register (G.291.B). Coal Checker's Register Coal Charging Register Coal issued to each Driver or Engine(T.41) Daily issue of coal - summary of Daily issues(T.402)

Weigh bridge inspection Time Board (Loco Shed and C&W Depots) Stores Accounts ( -do- ) Numerical ledgers ( -do- ) Consumption of coal with reference to the scale fixed (Loco shed)

(B) Branch Stores Offices and Stores Depots under Stores Department or Engineering Department: 1) 2) 3) 4) 5) 6) 7) 8) 9)

Local Purchase orders with day books and bills passed Penalties waived or imposed DS8 Register. Auction Sale Account Crane Charges Clearance of material sale Delivery Notes and recovery of ground rent, if any. Inspection of issue wards. Recoupment of Stores Scrutiny of sanction to quantity and 'purchase' through programme indents placed on the DGS & D. 10) Fixation of maximum and minimum 11) Disposal of surplus and overstock of materials 12) Newly purchased material classified as surplus 13) Survey Committee Reports 14) Sale of Stores and scrap to Railway employees and outsiders 15) Material issued on loan 16) Accountal of empties 17) Delay in release of loaded wagons and demurrage, if any, incurred 18) Accuracy of weighing machines and weigh bridges. 19) Register of samples and accountal of patterns 20) System of stock verification to see that verification is not confined to those items the stocks of which are low. 21) Accounts, custody and disposal of scrap 22) Arrangements for safe custody of valuable and easily removable articles 23) Accountal of rejected stores 24) Entrusting printing work to outside presses(DCOS(G))

386

Ch.XVI - Page 23 of 51

25) Timber shed 26) Purchase of Stationery(S&F Depot) 27) Printing of Books and Forms(S&F Depot) 28) Tracing of postings of receipts and issues of Stores on depot stock and custody account into numerical ledgers (Engg. & S&T Depots) 29) Custody Stores Account(Engg. & S&T Depots) 30) Unloading Register. -do31) Day Book of receipt 32) System of verification of received stores with specification and quantity actually received 33) Register of purchase orders 34) Review of reasonableness of indents and end use of stores specially items costing Rs. 50,000/- and above. 35) Receipt Notes 36) Arrangement for Inspection and valuation of returned stores (in returned stores ward if maintained separately). 37) Procedure for verification of quantity and quality of stores issued from stock 38) Register of requisitions 39) Issue Notes 40) R.R.Register 41) Lorry Log Books 42) Claims Register 43) Gate Passes 44) Challans 45) Railway Materials Consignment Notes and Credit Notes 46) Numerical Stock Cards(when maintained with Depot Store Keeper) 47) Review of Register for stock items covered by indemnity (C) Engineering Offices(Civil, Electrical, S&T and Construction) 1) Engagement of Special labour 2) Sale of Grass 3) Review of Works register 4) Audit of completion reports of works costing less than Rs. One lakh 5) Rate slips and rates register 6) Register of measurement books 7) Work Orders 8) Measurement Books 9) Contractors Bills 10) Adjustment Voucher 11) Siding Register 12) Material-at-site Account 13) Ballast Register 14) Ballast Train Journals 15) Sale of Coal Ashes 16) Sale of wooden sleepers 17) Register of trees 18) Contractors Ledgers 19) Land Registers and Register of cases of encroachment on Railway Land 20) Register of Bridges, Register of level crossings 21) List of completion drawings 22) Register of buildings leased to outsiders

387

Ch.XVI - Page 24 of 51

23) Field Time Books 24) Work Charged establishment 25) Comparison of Railway rates with Civil rates 26) Register of classification of soil and cases of re-classification of soil 27) Following items in AEN's Office. i) ii) iii) iv)

Record of AEN in regard to witnessing of payment to staff Register of Engineering Vehicles Credit Notes Thumb Impression Register

28) Motor trolly log book, petrol and consumable stores, use of concrete mixers, pumpsets, road rollers etc. 29) Inventory of materials laid in the track 30) Need, utilisation and replacement of battery cells 31) P & T Telephone Bills 32) Trunk Call Bills 33) Review of Register of Service Buildings 34) Register of residential buildings 35) Register of land leased to outsiders(DEN's office only) 36) AEN's Workshop 37) Tally Cards and field time books 38) Reconciliation of field time books with job cards 39) Job Cards 40) Accounts of materials issued to contractors 41) Review of register of rest houses 42) Engine hire bills 43) Manufacture Accounts 44) Check of movement shown in T.A. Journals with dates of records of measurement 45) Review of deposit works 46) Electricity Purchase Bills(Electrical Department) 47) Supply of Electricity to outsiders(Electrical Department) 48) Accounts of fans and other loose electric fittings(Electrical Department) 49) Engineering Plant reserve - Hire to other Government Departments and outsiders 50) Hire of Railway property 51) Meter reading statement and Electricity Bills(Electrical Department) 52) Power Houses working of - Power Cost Statements(Electrical Department) 53) Coal Account and Stores Account of Power Houses 54) Review of reasonableness of indents and end use of stores specially items costing Rs.50,000 and above. NOTE: Civil Engineering Workshop at LGD - Test audit of Accounts of the Workshops should cover all items as per Workshop audit programme including inspection of sub-shops. (D) Divisional Commercial Manager’s Office. 1) 2) 3) 4) 5) 6) 7)

Busy season staff Agreement regarding goods handling work etc. Lease of plots of land Recoveries from sweetmeat contractors Recoveries of excess fare Refunds and remission of wharfage and demurrage Recoveries of fees etc. from Vendors

388

Ch.XVI - Page 25 of 51

8) Indemnity Bonds 9) Review of Divisional Railway Manager's report regarding Ticketless travel 10) Review of recoveries from station staff on account of accounts and its debits 11) Account of badges issued to station hamals 12) Roster of duties of ticket checking staff 13) Register of relieving staff 14) Issue of concession certificates 15) Agreements for cycle stands 16) Compensation claims statistics and working of the claim prevention organisation 17) Refund Orders 18) Clearance of station outstandings 19) Arrangements for sale of tickets at train halts 20) Accountal of saleable publications, viz. Tariffs, Time Tables, Concession Order Book, Railway Service Commission Forms etc. 21) Departmental Catering (E) Medical Department: 1) 2) 3) 4) 5)

Indoor Patients Register Diet charge recovery statement X-ray charges recovery statements Register of Medicines, Instruments etc. Register for supply of contraceptives to Railway employees and recovery of cost thereof wherever necessary 6) Breakage and loss statement 7) Distribution of conservancy staff 8) Medicines from staff benefit fund 9) Register of Outdoor patients 10) Linen Account 11) Fees to non-subsidised surgeons and other Government Medical Officers or private practitioners for services to passengers and other persons injured in accidents 12) Financial expenses 13) Expenditure on diet 14) Accounts of provisions and vegetables issued to cooks 15) Accounts of milk, stock ledger of medicines, indents, issue notes and stock verification. 16) Local purchases 17) Accounts of first aid boxes 18) Log books of ambulance cars 19) Accident relief medical equipment vans 20) Sales including sale of rubbish (F) ACME/DCME's Office including Office of Chemist Metallurgist and Laboratory Accounts. 1) 2) 3) 4) 5) 6) 7)

Sanctioned strength of Workshop staff and its distribution among the various sub shops. Trade Tests and promotion of workmen from one category to another Special Works-trials and experiments Accountal of furniture, loose fittings released from rolling stock Indenting of Stores for special works, programmed work and repairs Overtime to workmen Control over shop outturn

389

Ch.XVI - Page 26 of 51

8) Sale of firewood and scrap timber to Railway Employees and outsiders 9) Accountal of scrap released 10) Work orders issued by CME, CE(OL), ACME, Asstt. Bridge Engineer, Review of expenditure, allocation. 11) Incentive Scheme - Working of 12) Machinery and Plant - Installation of 13) Machinery, Tools and Plant Register (G) Catering Units: 1) Review of profit and loss account 2) Profit and Loss on items prepared as per formulae 3) Vendor's Accounts 4) Purchase, out of catering earnings 5) Debits against staff and vendors 6) Loss of cooked food 7) Cash remittance 8) Sales Cash Book 9) Provision Indents and Bills 10) Stall Keeper's Ledgers 11) Collection and remittance of sales tax 12) Daily transactions account 13) Stores Ledger work 14) System of verification of stock of provisions 15) Coupon system 16) Credit Sales (H) Chief Cashier's Office: 1) Receipt and remittance of a day 2) Cash with cashier for a day 3) Indemnity Bonds (I) 1) 2) 3) 4) 5)

Printing Press: Muster Roll Time Office Work Orders Stores Account Work done for outsiders

(J) R.P.F. Training School: 1) Armoury Account 2) Clothing Account 3) Messing Arrangement (K) Staff Training School: 1) Messing Arrangements 2) Pay and Allowances of Trainees 3) Expenditure on equipment, libraries etc.

390

Ch.XVI - Page 27 of 51

(L) Schools: 1) 2) 3) 4) 5) 6)

Recovery of school fees from staff and outsiders Clothing Account and uniform supplied to children Expenditure on stationery and books Annual Receipt and expenditure Accounts Realisation of grant-in-aid from State Governments Library Books

(M) Subsidised Hostels: 1) Eligibility of residents for admission 2) Recovery of messing charges 3) Review of working of hostel (N) Office of the Assistant Security Commandant (or) Commissioner NSR: 1) Verification of Reward Imprest 2) Register of Punishments 3) Register of thefts detected by or reported to the Protection Force and Final action taken thereon 4) Monthly report of losses due to thefts 5) Register of Missing fittings reported to the Protection Force 6) Log Books of motor van etc. and petrol account 7) Allotment of motor cycles to Inspectors of Security Force Scheme to be reviewed. 8) Fire Service Organisation - Maintenance of 9) Supply of Kit and clothing 10) Clothing and equipment stock book 11) Individual uniform register 12) Movement Orders Register 13) Index of Travelling Allowance Claims 14) Quarters Allotment Register 15) Arms and Ammunition issue and Return Register 16) Crime Register 17) Damage and deficiency message report 18) Case Property Register 19) Register of shortages and damages from seal - intact wagons(Inward and Outward). (O) Items Special to Civil Engineering Workshop - Lallaguda 1) Review of Works Register 2) Audit of Completion Reports - Rs. 1 lakh and less 3) Contractor's Bills 4) Firm's Bills 5) Adjustment Vouchers 6) Material-at-site account 7) Work Orders 8) Time Office 9) Issue and Receipt Notes 10) Tally Cards 11) Gate Passes(Stores and Labour) 12) Measurement Books

391

Ch.XVI - Page 28 of 51

13) Workshop Account Current 14) Special Labour and Work charged establishment 15) Proforma on cost budget 16) Shop and General on cost percentages Part II-A - Items common to all offices: 1) Payment under Wormen's Compensation Act(Common to Divisional Offices) 2) Sanctioned strength 3) Leave accounts including the staff due to retire, prior to the end of the year in which next inspection is due 3a) Comparison of leave accounts with attance register/muster rolls. 4) Rent recovery 5) Casual leave 6) Attendance Registers 7) Muster Rolls, if specially maintained 8) Service Registers 9) Advance of T.A. and recovery thereof especially those granted from imprest 10) Salary bills of subordinates staff 11) Fixation of pay 12) Rent recovery and Title to rent free quarters or allowance in lieu thereof 13) T.A. Journals of staff which are not sent to Accounts Office. 14) Increments 15) Hot weather establishment 16) Payment of local and special allowances such as Bad climate allowance etc. 17) Pay orders 18) Imprest cash 19) Miscellaneous Cash Register, receipts and remittances 20) Postage account 21) Recovery of water and conservancy charges 22) Passes and P.T.Os. 23) Dead stock and tools and plant registers 24) Stationery 25) Clothing Account 26) Recovery of diet charges 27) Miscellaneous Bills including expenditure on entertainment 28) Tenders and agreements and Register of agreement 29) Approved list of contractors and whether they are only such as have produced I.T.C. certificate. 30) Recoveries from other Departments and outsiders for recurring and non-recurring services rendered. 31) Log Books 32) Review of inspection Reports - Part II 33) Register of losses, statement of losses and cases of claims against Traffic Department. 34) Review of reconciliation of issue notes received from parties acknowledging receipt of stores and corresponding copies of Inspection Notes received from Accounts Office with the Block Copy. 35) Register of numbered books(Cash value books) 36) Register of staff liabilities 37) Security Deposit from staff entrusted with the custody of cash and stores 38) Control of expenditure, maintenance of liability register.

392

Ch.XVI - Page 29 of 51

39) Maintenance of collective record of special casual leave. 40) Payment of tax, if any, for motor vehicles 41) Compensation for loss of articles booked under F.S.W.Bills. 42) Verification of Pensionable Service especially those due to retire before next inspection. 43) Withdrawal from Station earnings 44) Law charges and court cases 45) Review of handing over reports of stock holders and Stock Verification Sheets 46) Cases for local investigation 47) Recovery of test charges on samples called for in connection with tenders/stores obtained for stock and trial purposes 48) Reimbursement of tuition fees 49) Overtime Bills 50) School Fee Bills 51) Night Duty Allowance 52) Railway Material Consignment Notes and freight bills. 53) Register of repairs to typewriters and office bicycles 54) Review of handing over reports and inspection reports of General Manager, Heads of Departments, Divisional Railway Managers and other officers 55) Economy achieved by surrender of posts as per Railway Board's directive. 56) Surrender of posts due to dieselisation, computerisation 57) Periodical confidential D.Os.(PCDOs). 58) Material for General Manager's Annual Report 59) Working of the simplified procedure for recovery of rent, festival advance, electrical energy etc. 60) Review of Inspection Reports of Accounts Office 61) Office copies of schedules relating to Group Insurance Scheme(Annexure 'A' and 'E' for the month of January or December are to be checked with pay bills). 62) The nominations made under Group Insurance Scheme should be checked while checking the Service Registers. 63) Payments from insurance fund and savings fund Annexure 'B' should be checked to the prescribed extent with reference to the table of benefits and the nominations as recorded in the Service Registers. 64) Review of reasonableness of indents and end use of stores specially items costing Rs.50,000 and above. Part II(B) - Items common to Shops: S.No.

1. 2. 3. 4. 5. 6. 7. 8.

Particulars

Initials of ----------------------------------Auditor S.O./ B.O. /Sr.Ar. A.Au.O.

Gate passes Time Sheets Attendance Registers and Overtime Registers The system of preparing M/Rolls for labourers for whom no time sheets are prepared Duty Certificate of labourers temporarily engaged out of shops The System of allocating labour to a particular work order The system of accountal of stores Stores charged off to works

393

Ch.XVI - Page 30 of 51

9. Accounts of Stores spared from works 10. Accountal of dead stock 11. Accounts of consumable stores 12. Scrap accounts and the arrangements for the weighment of scrap returned to stores 13. Work Order Register 14. Clothing accounts including water proof equipment and cumblies 15. Tools and plants register 16. Accounts of Railway tools lent to private parties 17. Check of sanctioned strength with the actual strength 18. Arrangement for shift duty for labour staff 19. Miscellaneous cash accountal thereof -Imprest Cash 20. Pay Orders 21. Card Passes, Residential Card Passes 22. Passes and Privilege Ticket Orders(P.T.Os.). 23. D.S.8 and returned stores 24. Coal, Coke and Oil Accounts 25. Accountal of material issued on loan 26. Check of ticket Board 27. Actual count of labour with T/sheets and to see whether men are actually present 28. Machinery and Plant lying surplus 29. Motor Lorry accounts, if any 30. Tally cards maxima and minima 31. Service Cards including comparison of rate of Pay with Muster Roll 32. Leave Accounts 33. Review of incentive scheme 34. Installation and utilisation of surplus machines 35. The reconciliation of the time sheet with M/Rolls should be test checked and large differences taken up 36. System of payment of wages etc. to labourers including the witnessing of payments during the period of inspections. 37. System of distribution of on-cost 38. System of sending out material from shops 39. System of shop delivery notes etc. for articles manufactured for other shops and inter shops transfer notes of stores 40. Measurement Books 41. Cupola books or other initial records of manufacture 42. Does the cost of manufacture of similar articles at different times vary considerably? If so, are the factors contributory to the variation, suitably investigated and defects rectified (Para 354 - Railway Audit Manual) 43. Recovery of non-ferrous turnings/borings from shop floorAccounts of boring as also arrangements for collection and their disposal

394

Ch.XVI - Page 31 of 51

Annexure V (Para 1611) (Format of the forwarding letter for issue of Part I and Part II Inspection Reports and Test Audit Notes) (Para 9.2.1 Report of the Committee on Railway Audit Norms) …… OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT SOUTH CENTRAL RAILWAY SECUNDERABAD No.

Date:

To (Executive Office) --------------------------------------------------------------Sub: Inspection Report -Part I …… I forward herewith the Inspection Report Part I/II______ on the check of the accounts of _________________ office done during ____________, for information and early reply.

Audit Officer Copy together with a copy of the Inspection Report forwarded to (Accounts Officer) for information and early reply. Copy to (other authorities concerned) Audit Officer NOTE 1.

The Inspection Report sent to Accounts Officer should also be signed in full by the Branch Officer issuing the report, the other copies may be marked as “Sd/-”

2.

In case of open line all the reports will be addressed to the DRM who is the administrative Co-Ordinator, and has primary responsibility for the efficient functioning of the Division with copies to the supervision in functional hierarchy, incharge of the unit audited and Accounts at the appropriate level. In case of functions like CN, Workshops, Stores the IRs can be addressed to the appropriate level, i.e., CE, CWM, COS respectively. (Para 9.2.1 RANs)

395

Ch.XVI - Page 32 of 51

Annexure VI(Para 1613) List of items to be checked during the review/inspection of major works(completed works and works in progress). ……. Works Portion: 1) 2) 3) 4) 5) 6) 7) 8) 9)

Estimate Review of Works Register Agreements Contractors Bills Contractors Ledgers Work Order Measurement Books Tracing of bills, vouchers into Works Registers Financial Reviews for the work(Quarterly or Half Yearly)Progress Reports showing financial and physical progress.

Establishment Portion: 1) 2) 3) 4) 5) 6) 7) 8)

Extra Labour Register Labour Paysheets Station Pay Orders T.A. Journals Field Time Books Muster Rolls Attendance Register of DSK/SE(Wks)/SE(P.Way)/BRI etc. Temporary Establishment - Currency and extension

Stores Portion: 1) 2) 3) 4) 5) 6) 7) 8) 9)

Indents Stores Bills DSK's Numerical Ledgers including receipts and issues Tracing of paid stores bills into DSK's Numerical Ledgers Credit Notes Wharfage and demurrage cases Material-at-site account and return Shortages and Losses Account of Released Materials

Miscellaneous Portion: 1) 2) 3) 4)

Dead Stock Tools and Plant Numbered Books Register of numbered books, Card Passes and other Passes and Privilege Ticket Orders

396

Ch.XVI - Page 33 of 51

Annexure VII(i) - (Para 1616) List of items to be checked GENERAL 1.

Scrutiny of withdrawals from Station Earnings

2.

Review of Travelling Inspector of Accounts (TIA) Reports.

3.

Examine whether Tariffs and other Books of references are maintained upto date.

4.

Preparation of station vouchers in double-sided carbon. This should be ensured.

5.

Scrutiny of arrangements for i) Custody of cash ii) Remittance of cash to see that adequate sefeguards are taken to carry the cash to the Treasury/Bank, if the cash is not sent to Chief Cashier through travelling safes and that there is no avoidable delay in transmission of cash to the Treasury/Bank/Chief Cashier.

6.

Transit Mema of Vouchers and Returns: It should be seen that vouchers and returns are sent on due dates.

7.

Advertisement Register: The advertisements actually displayed should be linked with the register to ensure that they are exhibited under proper authority and that no advertisement is exhibited beyond the authorised period.

8.

Stamp Account: The balance on hand should be checked with reference to the account maintained.

9.

Review of Inspection Register maintained at the station. It should be reviewed that irregularities pointed out have been set right. A review of the Inspection Notes of Officers, Commercial Inspector's Reports, Traffic Inspector's Reports must also be undertaken.

10.

Review of Agreements of Outagency/Town Booking Office/Siding if any. Agreement should be reviewed generally.

11.

Working of street delivery arrangement, if any.

12.

Accountal of Tools and Plant, Stationery, Kerosene Oil etc. The Registers should be reviewed to see whether stock verification has been done as required.

13.

Muster Rolls and Attendance Register: These should be generally reviewed.

14.

Check of Passes and PTOs issued by Station Master: The Passes and PTOs should be generally reviewed with reference to Pass Rules.

15.

Free Service Way Bills: To be seen that nothing other than required are despatched free.

16.

In addition, the items given in Annexures VII(ii) to VII(iv) in respect of passenger/parcel/goods traffic are to be checked.

The

397

Ch.XVI - Page 34 of 51

Passenger Traffic (List of Items Checked) Particulars of vouchers checked 1. Verification of Cash (Cash as per Cash Book, cash actually on hand and full particulars of each and vouchers on hand viz. Name of Voucher No. and date amount issued by whom. 2. Inventory of luggage(Station from No. of packages, description etc.)

As per sheets attached

3. Counting of tickets on hand(name of a station to, class, commencing and closing nos. of tickets checked - in form TASF/Station Accounts). 4. Check of Ticket Book(No. and date of indent) 5. Check of passenger tickets shown on luggage tickets(No. and date of luggage tickets, station to and No. and date and class of passenger tickets). 6. Check of tickets sold including check of DTCB and summary and check of totals of DTCB with C.R. Notes(dates checked) 7. Check of Blank Paper Tickets, Excess Fare Tickets, Telegraph Receipts and other Misc. Tickets. (Commencing and closing Nos. of Tickets checked and date). 8. Register of Blank Card Tickets(Date checked) 9. Season ticket traffic (dates checked) 10. Verification of Indemnity Bonds - Application forms, Time Tables, Guides and Tariff for sale (Bond forms Nos. on hand verified and No. of other money value books with their particulars). 11. Tracking of Money Receipts in DTCB(No. and date of money receipt) 12. Check of register of numbered books, (Indent No. and date, particulars of books verified with commencing and closing numbers). 13. T.C.Returns(Dates checked). 14. Check of luggage & H.C.D. Tickets in luggage or Parcel Cash Book (Luggage/Ticket No. and date from, No. to No.) 15. Check of cash book(Luggage dates checked). 16. Check of D.B. and C.R. Notes (Dates checked). 17. Check of accuracy of wharfage collected in respect of luggage(Names of months, broken period checked during the month of inspection and reference to items in D.B. and page No. of D.B.)

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18. Test check of some items of work done by TIAs(particulars of items checked) 19. Check of items of loading book, unloading book and wagon exchange book(dates checked). 20. Test weighment of luggage outward and inward.

399

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Parcels Traffic (List of Items Checked) Particulars of items checked 1. Verification of cash(cash as per cash book, cash actually on hand and full particulars, viz. name of vouchers No. date, amount issued by whom) 2. Inventory of parcels on hand (station from, W.B. No. and No. of packages, description and marks)

As per sheet attached

3. Verification of indemnity bonds, (Bond and form Nos. on hand verified and No. of other money value books with their particulars) 4. Tracing of Money Receipts in parcels cash book(no. and date of money receipt) 5. Check of register of numbered books (Indent No. and date and particulars of books verified with commencing and closing Nos.) 6. Check of paid outward Way Bills in parcels cash book (Way bill No. and date (From No. to no.). 7. Check of Way Bills with reference to particulars on the forwarding note (No. and dt. of Way Bill and station to). 8. Check of Delivery Book with Cash Book (Date checked). 9. Check of collected receipts with D.B. and C.B. 10. Check of Cash Book(Date checked) 11. Check of D.Book(Date checked) 12. Check of C.B.and C.R. Notes (Date checked) 13. Check of items in Loading Book and Unloading book(Dates checked). 14. Check of accuracy of wharfage and demurrage collected(Names of Months & broken period checked during the month of inspection and reference to items in L.B. and Page of D.B.) 15. Test weighment of Parcels 16. Check of outstanding items(full particulars of freight outstanding admitted and non-admitted debits) 17. Check of Free Service Books (No. and date of bill and particulars of consignee). 18. Gate pass book (No. and date of statements and amount remitted) 19. Auction sale statement (No. and date of statements and amount remitted)

400

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20. Compensation claims settled by Station Masters(RR No. and date, particulars of items and amount of compensation paid) 21. Test check of some items of work done by TIAs(Particulars of items checked) 22. Wagon Registration Fee statement (Period checked) 23. Handling bills

401

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Goods Traffic (List of Items Checked) Particulars of items checked 1. Verification of cash(cash as per cash book, cash actually on hand and full particulars of vouchers on hand, viz., name of vouchers No. date, amount issued by whom) 2. Inventory of Goods on hand (station from, No. of packages, description and marks and invoice No.)

As per sheet attached

3. Verification of indemnity bonds, (Bond or form Nos. on hand verified and No. of other money value books with their particulars) 4. Tracing of Money Receipts in Goods cash book(no. and date of money receipt) 5. Check of Register of numbered books (Indent No. and date and particulars of books verified with commencing and closing Nos.) 6. Check of paid outward invoices in Goods C.B.(Invoice No. and date ________ From No._____to_____) 7. Check of invoices with reference to particulars on the forwarding consignments notes (No. and dt. of invoices and station to). 8. Check of Delivery Book with Cash Book (Dates checked). 9. Check of collected receipts with D.B. and C.B.(Goods) date checked. 10. Check of Cash Book(Goods) Date checked) 11. Check of C.B.and C.R. Notes (Date checked) 12. Check of accuracy of wharfage and demurrage collected(Name of Month, broken period checked during the month of inspection and reference to items in the D.B. and page No. of D.B.) 13. Test weighment of Goods 14. Check of items in loading book, unloading book and wagon exchange book(dates checked) 15. Check of outstanding items(full particulars of freight outstanding admitted and non-admitted debits) 16. Check of Free Service Books (No. and date of bill and particulars of consignee. 17. Crane and Hire statements (period checked) 18. Wagon Registration Fee Statement (Period checked) 19. Gate pass book (No. and date of Gate passes checked)

402

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20. Siding statement (Name of sidings and period checked) 21. Auction sale statements (No. and date of statement and amount remitted) 22. Compensation claims settled(RR No. and date, particulars of items and amount of compensation paid) 23. Test check of some items of work done by TIAs(Particulars of items checked) 24. Handling bills

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Annexure VII(ii)(Para 1616) List of Items to be checked (in addition to items in Annexure VII(i)) PASSENGER TRAFFIC 1. Count of Cash: Cash on hand (including imprest cash and Advance Booking Reservation(ABR) cash) to be counted and agree with the sale of tickets(including Platform, Reservation, Retiring Room tickets etc.) upto the time of inspection as per Daily Trains Cash Book(DTCB) and verification of vouchers, P.T.Os. Jail requisition military vouchers forms. Cash with Station Master/Asstt. Station Master should also be checked. 2. Verification of lowest numbers in the tube and paper ticket books with the closing numbers in the D.T.C.B. 3. Marking of last tickets issued from paper ticket, luggage books, receipt books etc. 4. Inventory of luggage and left luggage on hand as for Parcels. 5. Check of ticket requisition(indent book) to see that tickets supplied have been correctly entered in the ticket stock register and that tickets are not issued (taken in the tube for issue) out of consecutive order. Arrangements for safe custody of tickets and their periodical verification by Railway Administration should be scrutinised. 6. Check of entries in the tickets stock book with those in the D.T.C.B. and also to see that all stock of tickets supplied has been entered in the summary of D.T.C.B.(i.e. Passenger classification) irrespective of the fact whether there is sale of tickets or not. Regarding tickets issued out of series noticed by Audit, the "left out" series of tickets should be physically verified and a certificate recorded. Also to see that there is no surplus stock of tickets. While checking the recalled indents under which the surplus/obsolete tickets are returned to Traffic Accounts Office, the accountal of the last ticket sold which should be mentioned in the relevant column of the 'form' should be test checked. 7. Check of tickets sold during the broken period of the inspection. In addition, check of totals of 3 dates(to be conducted) in the three periods of different months. Advance Booking refunds should be checked with reference to the sale of tickets in the DTCB. Reservation charts and the correctness of cancellation charges to see whether it has been included as a voucher. 8. Check of credit voucher books for non-issued tickets(local and foreign). Credits for refunds in the DTCB should be checked with the non-issued statement. To see this acknowledgement for non-issued tickets sent has been received from Accounts Office promptly. Refunds allowed on partially used tickets should be specially looked into. Refunds of fares on the same day of purchase should be viewed with suspicion and investigated thoroughly to see whether the tickets are issued and cancelled during the same shift without actual exchange of cash. 9. Check of D.T.C.B. and summary with reference to respective books, checking of totals for the broken period of the inspection and verifying the accountal of money receipts issued to T.T.Es. 10. Printed card tickets on hand i.e. in Tubes and in Stock are to be counted in detail for about 5 destinations of all Classes/Categories.

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11. Check of fares over ticket tubes and to see that correct fares in force are also exhibited near the booking office for the information of the public. Check of fares on Halt Tickets may also be made. 12. To see that manuscript alterations on printed ticket are made wherever fares are changed before the tickets are kept in the tube and issued to the public. 13. Dating press: To see, if it is in order and gives clear impression of dates and that it has been tested regularly by the Inspector. 14. Check of luggage, H.C.Dogs, Cloak room, Motor tickets into cash book and cash book into DTCB 10 percent check of passenger tickets shown in luggage tickets with DTCB. 15. Check and accountal of: 1) Blank Paper Tickets 2) Soldier ticket books 3) Return journey vouchers 4) Excess fare ticket books 5) Telegraph receipts(should be checked with reference to draft messages) 6) Badges and Vendors' tickets. 16. Check and accountal of season ticket traffic 17. Check of time tables, guides and tariffs, RSC Application forms to see that the account of these publications received and sold is correct. 18. Scrutiny of sundry receipts: See that moneys due from stall, fruit stall platform vendors, Licensed Porters, Car/Auto Cycle Rickshaw/Cycle stand, license fee due from cloak room contractors etc. are collected and remitted on due dates as per advices received from time to time. 19. Halt Agent: The tickets sold to the Halt Agent and the commission deducted should be verified. The balance of cash to be traced in the Cash Book. The stock of Halt tickets, the issues to the Contractors and the balance stock to be verified with the Ticket Stock Book. A test check of halt tickets for a few destination stations should be made. 20. Check of Ticket Collectors/TTE's Cash Book: To see that all the Excess Fare Ticket amounts collected by the TCs are checked and accounted for in the Cash Book and the acknowledgement of the Cash handed over to the Booking Office to be verified. Also see that there is no delay in the accountal of cash collected by TCs. When the TTEs Headquarters are fixed at the station, their EFTs are also to be checked for accuracy and accountal. 21. Check of Summary Cash Book.: To see that all cash transactions are brought to the Summary Cash Book and tallied with Cash Remittance(C.R.) Notes. 22. Check of totals of DTCB/Summary Cash Book with C.R. Notes for the broken period and for one month of the closed period. 23. See that acknowledgements from the Cashier are received and pasted to the counter foils. 24. See that advices of internal checks are received and the error sheets issued have been taken to account. 25. Check of closed months Balance Sheet with reference to initial records at the station.

405

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26. Check of register of machine numbered books(money value books) with reference to indents complied with. See that tickets are signed for, date of completed books recorded against the current entries in the stock book and that the books on hand are correct. 27. Check of collected tickets and T.C. returns to see that number of missing tickets, particularly for short distance stations is not heavy; there is no reuse of tickets and that time-expired tickets are not found in collection. 28. Scrutiny of handing over Mema by TTEs. 29. Arrangements for prevention of ticketless travel:See that proper arrangements exist for the collection of tickets from the passengers and that suitable record of surprise checks conducted is kept at the station. 30. Test check some items of work done by the Inspector of Station Accounts, by taking his latest report received in the Accounts Office. 31. Comparison of concession orders issued by authorised colleges/schools(Para 1177 OM).

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Annexure - VII(iii)(Para 1616) List of items to be checked(In addition to items in Annexure VII(i)) PARCELS TRAFFIC 1. Count of Cash of Parcels, luggage etc. on hand at the time of inspection. 2. Closing of all books in use by the date of inspection and tallying the Cash on hand with books. 3. Marking of outstanding items in the Delivery Book. 4. Taking inventory of all parcels on hand and connecting them with the outstandings in the Delivery Book and reporting cases of Parcels lying on hand unconnected and unclaimed. 5. Examine: 1. Register of misdeclaration of parcels. 2. Register of reweighments 3. Register of unclaimed and excess articles lying at the station. 6. Check of "Paid" outward way bills in detail in Parcels Cash Book and DTCBs for the period from the last Balance Sheet submitted by the station upto the time of inspection. In addition, test check some items for the last closed period. 7. A few "Paid" way bills should be checked to see that they have been correctly prepared, risk notes held and weights as per forwarding notes have been correctly entered on the Parcel Way Bills. 8. Special credits such as "Paid-on" overcharge sheets and credit advices etc. should be verified. 9. Check Delivery Book with Cash Book all items during the period of inspection. In addition check Delivery Book with Cash Book for not less than 4 days during the period for which Balance Sheets have been submitted by the station. 10. Check some collected receipts with Delivery Book and Cash Book in order to verify the amount, dates of delivery and remittances. 11. Test Balance Sheet: Prepare Error-sheet account from the last Balance Sheet submitted by the station upto the time of inspection. 12. Examine the Cash Book generally for erasures, alterations etc. Totals to be checked at random for 3 days. 13. Cash Remittance Notes: i)

Check remittances from the last Balance Sheet submitted by the station upto the time of inspection.

ii)

Check remittances for any one previous complete month other than the "closed month" with reference to Balance Sheet.

iii)

See that acknowledgements from the Cashier have been received and pasted to counter foils

iv)

Delay in remittance of cash should be verified with reference to remittance into Bank/Guard's signature book.

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14. Cash Book: Compare totals of Parcels Cash Book with DTCB for the period from the last Balance Sheet submitted by the station. 15. General Money Receipts: The amounts for which receipts have been issued should be compared with the amounts accounted for in the Cash Book to ensure proper accountal of the amounts for which the receipts have been issued for the selected periods. 16. Advices of Accounts - see if these are promptly received from the Accounts Office and that error sheets issued are taken to account by the station. 17. Check of closed month's Balance Sheet with reference to initial records at the station. 18. Loading Books: Check not less than 20 items with Way Bills to see that packages have been promptly and correctly despatched. 19. Unloading Book: Check not less than 20 items with the Delivery Book to see that dates of unloading have been correctly shown in the Delivery Book. 20. Wharfage: Check accuracy and accountal of wharfage collected from the last Balance Sheet submitted by the station upto the time of inspection and also for any 3 previous months with Cash Book/Wharfage Return. 21. Test weighment of 5 outward and 5 inward parcels on hand; excess weight noticed, if any, should be got recorded in the Delivery Book. In the case of regular underweighments by particular stations, the action taken should be reviewed. 22. Check of outstanding items: (a) Admitted Debits outstandings (b) Not Admitted Debits outstanding (c) Any other outstandings See that outstandings are genuine and prompt action has been taken for their clearance. Report cases outstanding over six months for necessary action by the Administration. 23. Scrutiny of claims settled by Station Masters with reference to initial records of the station and also see whether Railway Receipts are stamped and endorsed with reference to Pay Orders issued and connected entries in the Delivery Book are referenced off. Regarding claims settled at Headquarters it should be seen that suitable entries are made in the Delivery Book to avoid duplicate claims. 24. Scrutiny of Damage and Deficiency Report, Partial Delivery Certificate, Shortage Certificates: To see that there is no delay in assessing the damages of consignments so that excess payment of compensation due to further deterioration is avoided. 25. Auction Sale Account. 26. Handling Bills: The weight lifted for which payment has been made should be completely checked with reference to initial records. The payments made should be checked with reference to the terms of agreement. 27. Review of engagement of Parcel Porters with reference to yardstick prescribed: The justification for the strength of Parcel Porters engaged should be examined. 28. Test check of machine numbers of "Paid" Parcels Way Books received from other stations and accounted for in the local Delivery Books with the list of books supplied to those stations. 29. Check of machine numbered books in use and in stock with reference to Parcels Traffic.

408

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30. Routing of Parcels by a dearer route: When alternate routes are available, whether freight charges are being collected by the carried route. 31. Check of Parcel Van Traffic: (1) Placement and release of parcel vans and proper utilisation of Parcel Vans. (2) Whether any seasonal traffic is lost due to non-availability of parcel van or nonsupply of wagons. 32. Check of Perishable Traffic, if any and Perishable Deposits Register. 33. See that weighing machines give correct weights and that scales are tested by the inspecting officials periodically. 34. Check of Gate Pass Books and Gate Pass Register: To see that the packages delivered are correctly removed on the date of delivery. The date of removal as shown on the gate pass should be verified with the date of removal as shown in the Delivery Book. 35. In the case of out-agencies and City/Town Booking Offices -Parcels received at serving station should be checked with reference to entries in the Handing Over and Taking Over Registers to see that wharfage charges have been recovered in the case of delayed removal from outagencies or City/Town Booking Offices are not detailed at the serving station. A test check of loading and unloading book for atleast 20 entries be made.

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Annexure VII(iv) (Para 1616) List of items to be checked(in addition to items in Annexure VII(i)) GOODS TRAFFIC 1. Counting of Cash on hand at the time of opening of the inspection. The cash on hand should be checked with reference to deliveries effected as per delivery books, outward goods booked as per the paid Invoice Books and Cash Books for other miscellaneous earnings. 2. An inventory of all goods on hand should be prepared including wagons awaiting to be loaded/unloaded. The consignments should be linked with Delivery Books, Gate Pass, Unloading Tally Books and Vehicle Registers. The outward consignments should be tallied with forwarding notes/invoices. The outstanding items should be marked in the delivery book. Report cases of goods lying on hand unconnected and unclaimed. 3. Comparison of "Outward-paid" amounts from record portions of invoices into cash books, for the period from the last Balance Sheet submitted by the station upto the time of inspection and any selected four days in the previous periods. 4. Check of totals of goods cash books for period as mentioned above. 5. Check of Railway Receipts for 4 dates into Delivery Book/Cash Book. 6. Check of D.B. totals for periods as mentioned in item 3 above. 7. Check of Wagon Demand Registration Fee, Receipts and Refunds and Review of Priority Register. The correctness towards Wagon Demand Registration fees for the period mentioned in item 3 above should be traced in Cash Book. The amounts refunded during the said period should be checked with reference to the Cash Book and with reference to the allotment of and loading of wagons as noted in the priority register and outward invoivces. The allotment of wagons should be checked with reference to the allotment orders received from the commercial authorities. To see that the time of placement of empty wagons for loading and the time of release have been entered in the priority register. 8. (a) Wharfage/Demurrage: Check accuracy and accountal of Wharfage/Demurrage collected for the period from the last Balance Sheet submitted by the station upto the time of inspection and also for any two previous months with Cash Book/WharfageDemurrage Return. (b) Crane/Haulage charges: The charges accounted for should be checked and traced in the Cash Book for the period mentioned above. 9. Scrutiny of siding agreement: Whether the agreement is properly executed; whether any deviations from the original agreement are covered by executing rider agreements. (a) Scrutiny of siding register with reference to which exchange book showing movements of wagons from and into sidings; whether the physical delivery of wagons and book delivery (i.e. collection of freight charges etc.) are effected simultaneously; if not reasons for delay in effecting book delivery should be scrutinised; whether siding statements are prepared for all sidings correctly; the siding charges collected should be verified for accuracy and traced into the Cash Book for the period mentioned above. 10. Auction sale statements: The amounts realised in auction sales should be traced into the Cash Book.

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11. Register of lease of plots: To see whether demarcation of plots has been properly made and the amounts towards license fees are promptly collected and accounted for. Arrears in payment of license fees etc. and other irregularities noticed should be reported to the Divisional Audit Officers concerned for taking up the matter with the Divisional Authorities. 12. Cash Remittance Notes: i)

Check remittances from the last Balance Sheet submitted by the station upto the time of inspection.

ii)

Check remittances for any one previous complete month other than the "closed month" with reference to Balance Sheet.

iii)

See that acknowledgements from the Cashier have been received and pasted to counter foils.

iv)

Delay in remittance of cash should be verified with reference to remittance into Bank/Guard's signature book.

13. Check of outstandings of closed months and comments on items outstanding over six months. 14. Prepare test Balance Sheet for goods inward transactions and error sheets from the last Balance Sheet submitted by the station upto the time of inspection. 15. Scrutiny of money receipts with reference to amounts accounted for in Cash Book for the selected periods. 16. See that advices of account are regularly reported and that error sheets issued have been taken to account by the station. 17. Check of closed month's Balance Sheet with reference to the initial records at the station. 18. Check of old outstandings, "to-pay freight", debits admitted and not admitted with a view to see they are genuine and that action has been taken to clear them. 19. Invoice books and consignments notes: To see that actual weights as shown on consignments notes are reflected on invoices; To examine atleast some percentage to see that invoices are correctly prepared, promptly issued (i.e. before despatch of the consignments), references, risk notes held etc. are given. To see also that there is no violation of restrictions imposed from time to time. 20. Check of loading books and guard's signature books for transhipped packages with record invoices. 21. Check of loading book with wagon exchange book and guard's signature book for consignments/wagons despatched. 22. Check of unloading and wagon exchange books with delivery books to see that dates of unloading are correctly recorded in the Delivery Book. 23. Check of Gate Pass Book and gate pass register: To see that packages delivered are correctly removed on the date of delivery. The date of removal as shown on the gate pass should be verified with the date of removal as shown in the Delivery Book. 24. Scrutiny of following registers: a) Index Register b) Register of weekly inventory c) Register of sender's weight accepted

411

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d) e) f) g) h) i)

Register of weighments Register of excess and unclaimed goods Register of sweepings Register of misdeclared consignment Register of short supply of wagons against standard rake indent. Register of credit notes/cheques/demand drafts accepted.

25. Scrutiny of quick-turn-round register with a view to see that wagons are not detained in Goods Shed and in the yard unnecessarily. It should also be seen that the wagons are not unduly detained at the station yard from the time of arrival to the time of despatch with reference to vehicle registers. 26. Scrutiny of weighing machines and weighbridges to see that they give correct weights and that scales are tested by the inspectors periodically. To see whether the weighbridges are fully utilised. 27. Check of machine numbered books(money value books) with a view to see that they are entered in the register as per indents complied with, they are signed for when issued, dates of completed books are marked and that the books to be on hand are correct. Also test check machine numbers of paid invoice books received from other stations and accounted for in the local Delivery Books with the list of books supplied to those stations. 28. Scrutiny of claims settled by Station Masters to be reviewed with the initial records there and to see whether railway receipts are stamped and endorsed with reference to pay orders issued and connected entries in the Delivery Book are referenced off as to payments made for shortage, damage or loss of entire consignments. Regarding claims settled at Headquarters it should be seen that suitable entries are made in the delivery book to avoid duplicate claims. 29. Handling Bills: The weight lifted for which payment has been made should be completely checked with reference to initial records. The payments made should be checked with reference to the terms of agreement. 30. Review of engagement of Goods Porters with reference to yardstick prescribed: The justification for the strength of Goods Porters engaged should be examined. 31. Sheets and ropes register. 32. Scrutiny of traffic on live stock, over dimensional consignments etc. 33. Scrutiny of Railway Material Consignments Traffic. 34. See that machine-prepared abstracts have been taken into account promptly and correctly. 35. Freight Forwarding Scheme. 36. Working of Container System. 37. Recovery of Quick Transit Service charges and refunds, if any, to be verified. 38. Routing of Traffic with reference to Rationalisation orders. 39. Damages and Deficiencies: To see whether the packing conditions are fulfilled. Scrutiny of Damage and Deficiency Reports, Partial Delivery Certificate, Shortage Certificates. To see that there is no delay in assessing the damages of consignments so that the excess payment of compensation due to further deterioration is avoided. 40. Trend of Traffic: To see whether the traffic offered is related to the raw material carried to the station.

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Annexure - VIII - (Para 1611 and 1616) Annexure XXVI (Reference Para No. 9.3) Top Sheet for Traffic Audit Inspection Party SECTION – A (To be filled by S.O. / A.AU.O.) 1.

a) b) c)

Name of Station inspected and name of SM/SS etc. Category of Station Account of Traffic checked

d) (i)

Nature of Main Traffic dealt with

d) (ii) e)

Main item

_________________ Minor Major Big Very Big Goods Coaching 1. Station 1. Parcel & 2. Sidings Luggage 3. Concor 2. Passenger Depot 3. Computerised PRS Outward Inward

1. Cement

Both 2. Oil

3 Fertilizers etc

Earning for Three years 1. In Rupees 2. In Months & Year of last inspection by Audit 3. Composition of Audit Inspection Party with Names 4. Dates of present Inspection from _________ to ________ 5. Contributed by Ar. / Sr.Ar.

S.O. / A.Au.O.I

S.O. / A.Au.O. II

B.O.

i) No. of rough objection notes issued ii) Date of discussion of objection notes with GO/Supervisory staff iii) Memos settled during discussion iv) No. of paras issued through Pt. III/R v) No. of paras proposed issued through Pt.i/IR/Spl.Letter 6. Cases of embezzlement, fraud, Yes included in Para ___ No case noticed misappropriation etc, if any detected of Part. II/I-IR/Spl.Letter by Audit (whatever applicable be ticked) Irregularity pointed out in 7. Certificates (Applicable be ticket) Para ___ of Pt. II/Ii) Realisation, withdrawal, custody, IR/Spl.Letter remittance of cash to cash office, Bank & accounting thereof checked ii) The prescribed checks as per were exercised properly 8. Station O/s as on _________ (last day of previous month) a) Freight __________ Rs. __________________ (Period from __________________) b) Admitted debit _________ Rs. _____________ (Period from __________________) c) Disputed debit _________Rs. ______________ (Period from __________________) d) Demurrage __________ Rs. ________________ (Period from _________________) e) Wharfage ____________ Rs. _______________ (Period from _________________) 9. List of work allocated to Members of Inspection Party is attached

413

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10. a) Date of submission of IR by Sections to BO b) Date of Submission of IR to GO Reasons for delay in submission of IR to BO / GO 11. Suggestions of Inspecting Officer Certified that I have exercised the audit checks prescribed in the relevant sections and paras of Railway Audit Manual while auditing item of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked. Sr. Audit Officer / Audit Officer Deputy Director

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Section B 1.

Date of receipt of Report in Co-Ord (HQ) / Report Section.

2.

Date of submission by the Section to the BO.

3.

Date of submission to Director / Deputy Director.

The draft audit Inspection Report with the half margin inspection memos, replies and connected records are submitted for approval after scrutiny. Sr. Audit Officer / Audit Officer Deputy Director / Director Section – C (To be filled by Co-Ord (HQ) after approval of Inspection Report) 1. Date of approval by Principal Directory of Audit. 2. Date of dispatch to Auditee unit. 3. Action taken on points / cases sent by Headquarters for investigation during Inspection. 4. Paras marked as PDP _______ Section D (To be filled by the Co-Ord (HQ) after approval of the report by Principal Director of Audit) Sl. No.

Subject

Contributed by (Name and Designation)

Financial effect

1. 2. 3. 4.

Sr. Audit Officer / Audit Officer

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Annexure XXVII (Reference Para No. 9.3) Top Sheet for Local Inspection Party (Open-Line) and Workshop and Stores Inspection 1. 2. 3.

Section – A Name of Office Month and Year of last Inspection Composition of Audit Inspection party with names

4. 5. 6. 7. 8. 9.

Dates of present inspection Dates of Branch Officer’s supervision Nos. of Preliminary Objections (POs) issued Date of discussion with executives Nos. of POs settled during discussion Nos. of paras proposed through:

Ar. / Sr.Ar.

SO / AAuO

Branch Officer

a) Special Letters b) Part. I Inspection Reports c) Part. II Inspection Reports 10. 11. 12.

Date of submission of draft inspection report to Group Officer Reasons for delay in submission of draft inspection report to Group Officer Duty list (attached) indicating allocation of items of work amongst the members of inspection party

Certified that I have exercised the audit checks prescribed in the relevant sections and paras of Railway Audit Manual while auditing the items of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked. Ar. / Sr.Ar. S.O. / A.Au.O. Sr. Audit Officer / Audit Officer Section ‘B’ 1. Date of receipt of Report by Director / Deputy Director. 2. Date of submission to Principal Director of Audit The draft Audit Inspection Report with the half margin inspection memos, replies and connected records are submitted for approval after scrutiny. Deputy Director / Director Principal Director of Audit

416

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1. 2. 3. 4.

Section ‘C’ (To be filled after approval of Inspection Report) Date of approval by Principal Director of Audit Date of receipt by the Branch Officer Date of dispatch to Auditee Unit Paras marked as PDP ______________ Special Letter _______ Section ‘D’

(To be filled by Branch Officer after approval of the report by Principal Director of Audit) Contributions Sl. Name and No. Designation

Part. I / Special Letter Number of Financial Paras effect

Part. II Number of Financial Paras effect

1. 2. 3. 4. 5. 6. 7. 8.

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Annexure XXVIII (Reference Para No. 9.3) Top Sheet for Construction Audit Inspection Party Railway Audit Office _______________ Name of the Unit / Organisation inspected ___________ Section ‘A’ (To be filled by the Local Audit Party) 1. Period of Inspection : From _______________ To ______________ (i)

Actual number of party days excluding holidays ___________

(ii)

Last Inspected Spell ________________

(iii)

Period of accounts covered during last inspection ____________

(iv)

Period of accounts covered during the current inspection _______

(v)

Whether extension was applied for

(vi)

If yes, the number of party days for which

Yes / No

a. Extension sought ______ b. Extension granted ______ Name of Party Members (i) Name of Inspection Officer

1. Sri ____________, Sr.A.O. /A.O.

(ii) Asstt. Audit officer / Section Officer

2. Sri ____________, AAO/SO 3. Sri ____________, AAO/SO

(iii) Sr. Auditor / Auditor

1. Sri ____________, Sr.Ar. / Ar. 2. Sri ____________, Sr.Ar. / Ar.

2. Whether the Report was discussed with the Head of the auditee unit (i)

If yes, the date of discussion

(ii)

If no, the reasons may be given

Yes / No

3. Audit certificates regarding work done as per duty list by the respective party members are enclosed. 4. Date on which sent for typing 5. Date of return from typing 6. Date of submission to Director / Dy. Director Sr. Audit Officer / Audit Officer

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Section ‘B’ 1. Date of receipt of Report by Director / Dy. Director. 2. Date of submission to Principal Director of Audit The draft audit Inspection Report with the half margin inspection memos, replies and connected records are submitted for approval after scrutiny. Dy. Director / Director Principal Director of Audit Section ‘C’ (To be filled after approval of Inspection Report) 1. Date of approval by Principal Director of Audit 2. Date of receipt by the Branch Officer 3. Date of desptach to Auditee unit 4. Paras marked as PDP ________ Special Letter __________ Section ‘D’ (To be filled by Branch Officer after approval of the report by Principal Director of Audit) Contributions Sl. No.

Name and Designation

Part. I / Special Letter Number of Financial Paras effect

Part. II Number of Financial Paras effect

1. 2. 3. 4. 5. 6. 7. 8.

Sr. A.O. / A.O.

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Certificate – I (For Sr. Audit Officer / Audit Officer) 1. Scrutiny of works contracts costing above Rs. 1 crore completed since last Audit (Quantum of check 100%) (a) Number of contracts completed since last Audit ________ (b) Number of contracts checked by Sr.Au.O. / Au.O. _______ (c) Number of contracts completed but not checked _______ with reasons. (d) Results included in Inspection Report / Special Letters with money value. Inspection Report Part. I

Part. II

Special Letters

Para No. Money Value

Para No. Money Value

Money Value

2. Scrutiny of ongoing works contracts costing over Rs. 1 crore. (a) Number of contracts in progress at the time of last inspection _______. (b) New contracts awarded since the last Inspection _______. (c) Total contracts in progress ________. (d) Number of contracts scrutinized during inspection _______. (e) Number of contracts not examined with reasons. (f) Audit result included in the Inspection Report / Special Letters with money value Inspection Report Part. I

Part. II

Special Letters

Para No. Money Value

Para No. Money Value

Money Value

3. Scrutiny of final bills in respect of works costing over Rs. 1 crore (Agreement value) for selected month. (a) Total No. of final bills required to be audited for selected month. (b) Total No. of final bills checked during inspection ___________. (c) Total No. of final bills not checked with reasons ____________. (d) Audit result included in Draft Inspection Report, Special letters with Money Value. Inspection Report Part. I

Part. II

Special Letters

Para No. Money Value

Para No. Money Value

Money Value

4. Check of payments made to Revenue authorities of State Governments for acquisition of land or other assets and their accountal (Quantum of check; 100 per cent). Total No. of cases and payments released _________________. Total No. of cases reviewed with monetary value _____________________. Audit results included in Draft Inspection Reports, Special letters with para No. and amount.

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Inspection Report Part. I

Part. II

Special Letters

Para No. Money Value

Para No. Money Value

Money Value

5. Other important items of work. Brief description of item Para No. of I/R

Money Value

Remarks, if any

Note: 1. After covering the cases due for current audit, the project review and contract audit can include cases not audited during immediately preceding spell of audit. 2. The checks which are not applicable to the unit inspected may be indicated as N.A. Certified that I have exercised the audit checks prescribed in the relevant sections and pars of Railway Audit Manual while auditing items of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked. Sr. Audit Officer / Audit Officer Certificate – II (For Asst. Audit Officer / Section Officer) 1.

Scrutiny of works contracts costing upto Rs. 1 crore completed since last Audit (Quantum of check prescribed; As per SMI). a. Number of contracts completed since last Audit _________ b. Number of contracts checked by Sr. Au.O. / Au.O. _____________ c. Number of contracts completed but not checked ________ with reasons thereof. d. Results included in Inspection Report / Special letters with money value. Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value 2. Scrutiny of ongoing works contracts costing upto Rs. 1 crore a. Number of contracts in progress at the time of last inspection __________ b. New contracts awarded since the last Inspection ___________ c. Total contracts in progress _________ d. Number of contracts scrutinized during inspection __________ e. Number of contracts not examined with reasons. f. Audit result included in the Inspection Report / Special letters with money value. Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value

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3.

Scrutiny of final bills in respect of works costing upto Rs. One crore (Agreement value) for selected month. a. Total No. of final bills passed during the period covered under inspection ___________ b. Total No. of final bills checked during inspection ____________. c. Total No. of final bills not checked with reasons ___________. d. Audit result included in Draft Inspection Report, Special letters with Money Value. Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value 4. Review of court cases / Arbitration cases (above Rs. 25,000/-) decided against Railways : Quantum of Check – 100% Total No. of cases: Total No. of cases reviewed with monetary value ___________ No. of cases not examined with reasons Audit result included in Draft Inspection Report, Special letters with Money Value Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value 5. Other important items of work Brief description of item Para No. of I/R Money Value Remarks, if any Note: 1. After covering the cases due for current audit, the project review and contract audit can include cases not audited during immediately preceding spell of audit. 2. The checks which are not applicable to the unit inspected may be indicated as N.A. Certified that I have exercised the audit checks prescribed in the relevant sections and pars of Railway Audit Manual while auditing items of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked. Asst. Audit Officer / Section Officer

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Certificate – III (For Sr. Auditor / Auditor – I) 1. Scrutiny of work orders for selected month a. Total work orders in progress _____________ b. Number of work orders scrutinized during inspection _______ c. Number of work orders not examined, with reasons. d. Audit result included in the Inspection Report / Special letters with money value. Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value 2. Scrutiny of on account bills. (Quantum of check prescribed; selected month). a. Total N. of on account bills passed during the selected month ________ b. Total No. of on account bills checked __________ c. Total No. of on account bills not checked, with reasons. d. Audit result included in Draft Inspection Report, Special letters with Money Value Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value 3. Check of imprest account (fuel imprest and general imprest) (Quantum of check; 100 percent for selected month). Total No. of imprests __________ Total No. of imprests reviewed with monetary value ___________ Total No. of imprests not reviewed with monetary value, with reasons ______ Audit results included in Draft Inspection Reports, Special letters with para No. and amount. Para No. of I/R Money Value Remarks, if any 4. Other important items of work Brief description of item Audit results included in Draft Inspection Reports, Special letters with para No. and amount. Para No. of I/R Money Value Remarks, if any Note: 1. After covering the cases due for current audit, the project review and contract audit can include cases not audited during immediately preceding spell of audit. 2. The checks which are not applicable to the unit inspected may be indicated as N.A. Certified that I have exercised the audit checks prescribed in the relevant sections and pars of Railway Audit Manual while auditing items of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked. Sr. Auditor / Auditor-I

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Certificate – IV I.

(For Sr. Auditor / Auditor – II) Complete check of Service Books and Leave Accounts of all officials retiring before next audit a. Quantum of checks 100 per cent b. Total No. of employees retiring during next year c. Total No. of SB and L/A checked d. Total No. of SB and L/A not checked with reasons e. Irregularities noticed in SB and L/A (No. of cases) Part. I Part. II Para No. Monetary Value Para No. Monetary Value 2. Productivity Linked Bonus 5% (a) Quantum of checks (b) Total No. of employees (c) Total No. of cases checked (d) Total No. of cases not checked with reasons (e) Excess payments detected Part. I Part. II Para No. Monetary Value Para No. Monetary Value 3. Recovery of Rent, Electricity charges, etc. from officials having Railway accommodation (a) Quantum of checks 5% (b) Total No. of employees having Railway accommodation (c) Total No. of cases checked (d) Total No. of cases not checked with reasons (e) Excess payments detected Part. I Part. II Para No. Monetary Value Para No. Monetary Value 4. Other important items of work such as fixation / re-fixation of pay and TA bills etc. Brief description of item Irregularities noticed Part. I Part. II Para No. Monetary Value Para No. Monetary Value

Note: 1. After covering the cases due for current audit, other cases not audited during previous year may be checked. 2. The checks, which are not applicable to the unit inspected, may be indicated as N.A. Certified that I have exercised the audit checks prescribed in the relevant sections and pars of Railway Audit Manual while auditing items of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked. Sr. Auditor / Auditor-II

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Annexure XXIX (Reference Para No. 9.3) Top Sheet for Cash office Inspection Party Railway Audit Office _____________ Section ‘A’ (To be filled by the Local Audit Party) I. Period of Inspection: From _____________ To ___________ (i)

Actual number of party days excluding holidays _________

(ii)

Last Inspected Spell ___________

(iii)

Period of accounts covered during last inspection _____________

(iv)

Period of account6s covered during the current inspection __________

(v)

Whether extension was applied for

(vi)

If yes, the number of party days for which

Yes / No

a. Extension sought _________ b. Extension granted ___________ Name of Party Members (i) Name of Inspecting Officer

1. Sri _____________, Sr.A.O. / A.O.

(ii) Asst. Audit Officer / Section Officer

1. Sri _____________, A.A.O. / S.O. 2. Sri _____________, A.A.O. / S.O.

(iii) Sr. Auditor / Auditor

1. Sri _____________, Sr.Ar. / Ar. 2. Sri _____________, Sr.Ar. / Ar.

2. Whether the Report was discussed with the head of the auditee unit (i)

If yes, the date of discussion

(ii)

If no, the reasons may be given

Yes / No

3. Audit certificates regarding work done as per duty list by the respective party members are enclosed 4. Date on which sent for typing. 5. Date of return from typing. 6. Date of submission to Director / Dy. Director.

Sr. Audit Officer / Audit Officer

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Section ‘B’ 1. Date of receipt of Report by Director / Dy. Director. 2. Date of submission to Principal Director of Audit. The Draft Audit Inspection Report with the half margin inspection memos, replies and connected records are submitted for approval after scrutiny. Dy. Director / Director Principal Director of Audit Section ‘C’ (To be filled after approval of Inspection Report) 1. 2. 3. 4.

Date of approval by Principal Director of Audit. Date of receipt by the Branch Officer. Date of dispatch to Auditee unit. Paras marked as PDP ________________ Special Letter _____________________

Section ‘D’ (To be filled by Branch Officer after approval of the report by Principal Director of Audit) Contributions Sl. Name and Part. I / Special Letter Part. II No. Designation Number of Financial Number of Financial Paras effect Paras effect 1. 2. 3. 4. 5. 6. 7. 8. Sr. A.O. / A.O.

Certificate – I (For Sr. Audit Officer / Audit Officer) 1. Review of working of cash and pay department. 2. Results of Audit included in Draft Inspection Report / Special letters with money value. Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value

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2. Audit Scrutiny of records of Indemnity Bonds. (a) Quantum of check: 100 percent in selected month (c) Number of Indemnity Bonds executed since last audit ____________ and during _________________ month. (d) Indemnity Bonds examined. (e) Indemnity Bonds not examined with reasons. (f) Results of Audit included in Draft Inspection Report / Special letters with money value Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value 3. Scrutiny of cases of loss / manipulation of cash (100 percent) a. Total No. of cases of loss / manipulation of cash since last audit. b. Total No. of cases checked. c. Total No. of cases not checked with reasons. d. Results of Audit included in Draft Inspection Report, Special letters with money value. Inspection Report Part. I Part. II Special Letters Para No. Money Value Para No. Money Value Money Value Other important items. Brief description of item Results of Audit included in Draft Inspection Report, Special letters with money value. Inspection Report Part. I Part. II Para No. Money Value Para No. Money Value

Special Letters Money Value

Note: 1. After covering the cases due for current audit, cases not audited during immediately preceding spell of audit, be examined. 2. The checks which are not applicable to the unit inspected may be indicated as N.A. Certified that I have exercised the audit checks prescribed in the relevant sections and pars of Railway Audit Manual while auditing items of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked.

Sr. Audit Officer / Audit Officer

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Certificate – II (For Asst. Audit Officer / Section Officer) 1. Cash book and challans maintained by Chief Cashier, DCP and Pay Clerks. a. Quantum of check (100 percent for ____________ month). b. Number of cash books and challans. c. Number of cash book and challans checked. d. Number of cash books and challans not checked with reasons. e. Results included in the Draft Inspection Report / Special letters with money value. Inspection Report Part. I

Part. II

Special Letters

Para No. Money Value

Para No. Money Value

Money Value

2. Verification of cash. a. Quantum of check: 100 per cent b. Number of Cashiers / Pay Clerks. c. Number of Cashiers / Pay Clerks whose cash was verified. d. Number of Cashiers / Pay Clerks whose cash was not verified with reasons. e. Audit result included in the Draft Inspection Report / Special letters with money value. Inspection Report Part. I

Part. II

Special Letters

Para No. Money Value

Para No. Money Value

Money Value

3. Review of cases of cheques dishonoured by banks. a. Quantum of check. b. Total No. of cheques dishonoured since last audit. c. Total No. of cases scrutinized. d. Total No. of cases not scrutinized with reasons. e. Audit result included in Draft Inspection Report, Special letters with Money Value. Inspection Report Part. I

Part. II

Special Letters

Para No. Money Value

Para No. Money Value

Money Value

Note: 1. After covering the cases due for current audit, cases not audited during immediately preceding spell of audit, be scrutinised. 3. The checks which are not applicable to the unit inspected may be indicated as N.A.

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Certified that I have exercised the audit checks prescribed in the relevant sections and pars of Railway Audit Manual while auditing items of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked. Asst. Audit Officer / Section Officer Certificate – III (For Sr. Auditor / Auditor) 1.

Complete check of Service Books and Leave Accounts of all officials retiring before next audit a. Quantum of checks

100 per cent

b. Total No of SB and L/A checked c. Total No. of SB and L/A not checked with reasons. Irregularities noticed in SB and L/A (No. of cases) Part. I

Part. II

Special Letters

Para No. Money Value

Para No. Money Value

Money Value

2. Productivity Linked Bonus

5%

(a) Quantum of checks (b) Total No. of employees (c) Total No. of cases checked (d) Total No. of cases not checked with reasons (e)

Excess payments detected Part. I

Part. II

Para No. Monetary Value

Para No. Monetary Value

3. Recovery of Rent, Electricity charges, etc. from officials having Railway accommodation (a) Quantum of checks

5%

(b) Total No. of employees having Railway accommodation (c) Total No. of cases checked (d) Total No. of cases not checked with reasons (e)

Excess payments detected Part. I

Part. II

Para No. Monetary Value

Para No. Monetary Value

Other important items of work Brief description of item Irregularities noticed Part. I

Part. II

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Para No. Monetary Value

Para No. Monetary Value

Note: The checks, which are not applicable to the unit inspected, may be indicated as N.A. Certified that I have exercised the audit checks prescribed in the relevant sections and pars of Railway Audit Manual while auditing items of activities entrusted to me and that no item of check prescribed or to be carried out under special orders issued from time to time has been overlooked. Sr. Auditor / Auditor

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CHAPTER - XVII ELECTRONIC DATA PROCESSING AUDIT(EDPA) SECTION 1701. Introduction: EDP audit is part of comprehensive audit of an organisation. EDP audit principles are the same as those which govern all other spheres of audit. The difference is only in application of these principles. While computerisation is often viewed in terms of changes in way things are done, an automated system does not necessarily require any new ideas. An automated system simply applies the processing abilities of a computer to the task. By using the computer, the limitations of human processing abilities are eliminated with proper system and design, the tasks can be performed in much the same manner but more efficiently by using the computer as a processing tool. Computers do not alter the basic concepts or objectives of the system control. However, the techniques and points of control must be adopted to the changing conditions and responsibilities of an EDP environment. 1702. Objectives: EDP Audit includes all activities undertaken to evaluate EDP system at any stage of its life cycle; from acquisition or development through operation and maintenance and ultimately replacement. The basic and broad objectives of EDP Audit are to see: 1. System Effectiveness: Does the system fulfil the aims for which it was acquired or developed? Does it provide the information needed by users in a convenient format and timely fashion? 2. System Economy and Efficiency: Is the use of system resources(hardware, software, people, money) optimised? 3. Data Integrity : Are the internal controls adequate to ensure that errors are not introduced when entering, communicating, processing, storing or reporting data? 4. System Security: Are the internal controls adequate to ensure that data can not be altered maliciously or assessed by unauthorised personnel? Are the system resources adequately protected against theft, waste, fraud and natural disasters? 5. System regularity: Are system activities (e.g. acquisition, development, operation, maintenance), compliance with applicable laws, regulations, policies, directives and guidelines? 1703. Functions and duties of EDP Audit Section : 1. To impart basic training in computer culture to staff and officers by holding seminars at various offices located at outstation and Hyderabad/Secunderabad. 2. To formulate effective audit procedures relating to computerised accounting systems/records. 3. To conduct inspections/audit of the computer system/records covering the following main headings. i)

Planning and acquisition of EDP facilities.

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ii) iii) iv) v) vi)

Review of installation controls Review of systems under development. Review of production systems Review of data systems Review of micro computer systems/office automation.

The extent and scope of EDP audit under the above headings (i) to (vi) depends upon the state of development of auditee computer organisation and the technical expertise of the audit personnel. 1704. Documentation: The importance of good standards of documentation insisted upon in audit holds good for EDP audit too. Maintenance of: -

an installation file containing details of hardware, software, staffing, basic procedures and controls,

-

an application file giving an outline of the system, its important control features, description of data stored in data files etc.; and

-

an audit file containing computer listing of programmes, input, output, data description and the objectives of the programme, can prove to be great help in the course of EDP audit form verification and

review. 1705(i). Audit Review of Planning and Acquisition of EDP Facilities and use of Resources : -

The purpose of audit of "EDP facilities planning" is to identify the impact of technological and environmental changes and to ensure that the most appropriate EDP services are provided. The questions asked are

-

Is there a strategic plan for provision of EDP services and does the plan take into account organisational, environmental and technological changes likely to occur in a three to five years time frame?

-

In auditing EDP facilities planning, we have to see whether services are provided in accordance with a published EDP policy. The purpose of audit in this case is to ascertain whether there is

-

lack of central coordination of EDP

-

a high degree of EDP centralisation in a decentralised organisation

-

uncontrolled proliferation of computers

-

lack of user awareness of service availability

-

any complaint from users regarding service offered

(ii) Audit of Acquisition of EDP Facilities: The overall objectives in an audit review of acquisition of EDP facilities is to see the adequacy of administrative procedures and controls used by a department when considering and deciding upon the acquisition of computer facilities.

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Acquisition of computer facilities may include; -

Acquisition of hardware introduction of a completely new installation enhancement of central processor enhancement of peripherals addition/replacement of a specific equipment, introduction of several small processors Acquisition of software general software associated with changes in hardware(a new operating system) specific purpose software, and 'off the shelf' application software

The first step in audit should be to identify the organisation's computer policy. The degree of complexity of hardware and software installed and cost and time scale for the installation will determine the precise procedure to be followed in each installation. The auditor should direct his attention to the following areas: 1. 2. 3. 4. 5.

Justification of hardware and software Feasibility study/project report containing proposals, costs and benefits Equipment selection Installation of equipment and adequacy of testing Post implementation review of costs and benefits The points to be looked into in each of these areas are given below:

1. Justification: Responsibility for examining and establishing the need for computer facilities lies with the Department (accountability for investment). -

Instead of saying "we have a computer, what can be put on it?", the decision to acquire the EDP facility should be because "we see inefficiency; can the computer save us time or money?"

-

Absence of a thorough study of the perceived shortfall in computing facilities or staff is indicative of a foreseen conclusion that there was no alternative to acquiring more computer facilities.

-

Failure to upgrade the equipment at the right time may involve risk of dependence on manufacturers for spare parts.

-

Delays in processing, one of the reasons for acquiring a new facility, may be caused by overloading of the existing computer, computer malfunctioning, inefficient programme design, staff shortages, poor staff performances in particular areas.

-

A discussion with computer staff may reveal unexpected results which point to a solution other than upgrading computer facilities.

2. Feasibility Studies: The feasibility study report should cover the following points: -

Clear statement of objectives

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-

Existing arrangements Alternative solutions Proposed solution

3. Equipment Selection: The following points should be borne in mind: -

specification of requirements for acquisition, enhancement or replacement of computing facilities are stated concisely and precisely as they form the potential;

-

both technical and commercial aspects of the proposal are evaluated according to standard contracting procedures;

-

procurement action is taken after ensuring that the suppliers’ offers meet the requirements of the specifications through; •

bench marking tests with sample representative job mix for measuring throughput of the system;

•

technology options available at the time of procurement;

•

obtaining first-hand experience of other users having similar systems installed in their organisations;

•

future development plans of the potential suppliers in terms of expandability, upgradability, communicability, trade in options;

•

financial appraisals are on the same lines as those of any other form of capital purchase and should take into account;

•

the extent of built-in obsolescence and useful life of the asset, and

•

incidental costs which could eventually be of sufficient magnitude, besides hardware and software costs.

1706. Installation of equipment and Adequacy of Testing: The following points should be borne in mind while monitoring: -

plan/schedule for installation and for monitoring progress(whether they are available);

-

schedule for conversion of software(extent of efforts required) and how it will affect the commissioning of the installation;

-

payments to suppliers are authorised after testing and user acceptance of the system;

-

maintenance and support services documentation, option for upgrading.

include

basic

training,

production

1707. Post Implementation Review: The detailed process of evaluating proposals specifying the requirements, organisation and installation should be followed by a post implementation

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review by the department to satisfy itself that the cost and benefits expected have materialised. The purpose of the audit review in this case is to see whether -

the estimated savings projected in the feasibility study compare favourably with the actual results;

-

there is evidence of major cost variations from budget estimates due to • • • •

inadequate planning unusual growth changing technology unforeseen conversion problems

1708. The use of Computering Resources: The purpose of audit review in this case is to appraise and report upon waste, extravagance, inefficient Administration or poor value for money. While the responsibility for effective and efficient use of all resources rests with the auditee organisation, it is the auditor's job to satisfy himself that the procedures laid down are adequate to make proper use of hardware, software staff and data; maximising the benefits and minimising the costs; and satisfying users by providing effective and efficient applications. Failure to complete the projects in estimated time scale, poor turn around of jobs, inadequately defined standards, insufficient monitoring, too optimistic forecast, too little users' participation and excess costs of new system development are some of the areas requiring auditor's attention. The following aspects should be reviewed in consultation with the computer management: -

often smaller applications are computerised without a cost justification exercise mainly because there is surplus computing power;

-

increasing the productivity of the existing computer facilities by making better use of staff resources through well-defined functional distribution should be considered as an alternative to increased staffing level;

-

computing resource of an organisation is not just hardware installed but the total contribution of software, hardware and staff. The performance can, therefore, be increased more effectively by improving contribution from these factors rather than acquiring more equipment.

1709. Audit review of EDP Installation controls: 1. Audit of EDP installation controls is closely bound to the audit of computer applications. However, in a large installation, it is usually advantageous to break up the audit into a number of smaller projects each dealing with some elements or with certain functions within the computer department. That is to say, the audit project could be broken up into functional units such as a review of data control facilities, organisational controls, environment controls. 2. The object of review of installation controls is to see that the regulations providing for the duties and responsibilities of various computer staff and other control staff and standards in regard to operation functions, access to computer and computer files, terminal activity

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etc. are such as to ensure efficient day-to-day running of the computer installation. The areas to be covered by audit are: -

Functions and responsibilities of those involved in installation management and computer processing.

-

Procedures for data preparation, data control and operating functions; access to the computer and its software and their custody.

-

Terminal controls in interactive systems.

-

Physical security and risk management which ensure environmental controls.

3. The following points should be covered while reviewing the installation controls. -

Obtain a list of hardware including computer, ancillary and terminal equipment in use indicating model, performance details and check the existence of this equipment.

-

Obtain an organisational chart which is uptodate and see how the computer fits into the overall organisation.

-

Obtain an uptodate staff organisation chart of the computer department showing the relative responsibilities and authorities and note any changes on review.

-

Obtain job specification(role definition) for senior computer staff and supervisors of the ancillary section and note any changes.

-

Obtain the details of standards and norms fixed for each of the functions like data control, data preparation, system operation and verify their implementation:

-

•

computer utilisation per shift in terms of Central Processing Unit(CPU) time and peripheral use;

•

key depressions per shift per data entry operator and error allowance;

•

document standards and controls-batching, balancing and sequencing;

•

run to run controls maintained by system operators;

•

whether manuals are maintained and kept uptodate specifying the control procedures and whether they are enforced in practice-through a 'test check'.

Obtain and verify existence of the following terminal; controls to protect data and system integrity; • • •

-

physical access controls to terminal rooms; software controls through password protection and user directories; logging of terminal activities by all users.

Obtain details of security measures, both physical and system, for check and review of the following; •

adequacy of protection of hardware and software against risk of fire(fire prevention steps and fire fighting arrangements);

•

maintenance of hardware and system software;

•

air conditioning and protection against possible radiations, vibrations;

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•

possible industrial action, malicious action by programmers, operators, inputoutput staff(discontent among computer operating staff);

•

security, awareness and training provided to all employees;

•

emergency shut-down procedures in case of power failures;

•

safe custody of software and data files and tape library;

•

adequacy of back-up files(off-site storage included);

•

operator access to programme files and data;

•

procedures for reconstructing files in the event of loss or disk errors/tape errors(contingency plans);

•

computer equipment back-up through the use of compatible equipment at other dispersed sites;

•

computer room should be off limits to all except systems operators, hardware engineers; and

•

insurance of the installation to cover possible risk.

1710. Audit Review of Systems Under Development: 1. The overall objective of audit is to ascertain whether adequate controls are incorporated during the system development phase and to ensure that these controls form part of the operational systems when implemented and that any amendment to the system does not invalidate the controls. The auditor, as a user of the system, should, therefore, involve himself during the system design so that he can evaluate the need for controls and auditability requirements while the system is being developed. This will avert the need for 'retrofit' controls at a later date. 2. While reviewing systems under development, the auditor should examine the following points either through questionnaires or by interviewing the system development groups. -

Whether a published standard methodology is being used for designing and developing systems.

-

Whether there is a common understanding by all parties-users, systems analysts, management and auditors - of the basic structure of both manual and computer processing activities, as well as of the concepts and needs for control and of the applicable control techniques. This understanding must be reached first at a nontechnical user level.

-

Who authorises EDP applications development - user or steering committee or management?

-

Whether the system development work was proceeded by a feasibility study to determine the most appropriate solutions to standard problem?

-

Whether there is adequate cross referencing between the following stages; • •

content and format of preliminary studies, feasibility studies,

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• •

system specifications, programme coding

-

Whether project management techniques are applied in system development work-that is to say, are there project decision milestones, time and cost estimates so that progress could be monitored against estimates?

-

Whether programming standards using modular, structured methodology are being adhered to in coding?

-

Whether existing in-house or external available application packages were considered before deciding upon new in-house application development?

1711. Audit Review of Production Systems: 1. "EDP application" refer to production system which are processed on an EDP facility, such as a pay roll system or an inventory control system. When the auditor proceeds to perform the audit of applications systems, the process consists of: -

Obtaining, understanding documentary evidence);

and

reviewing

documentation

(physical

and

-

Interviewing the EDP personnel and surveying the users of the applications on production stream for testimonial evidence;

-

Completing questionnaires for testimonial evidence; and

-

Reporting on the basis of physical, testimonial and documentary evidence collected in the course of EDP audit.

2. Documentation of applications is a by-product of the system development function. The accepted standards require that documentation should consist of system description, System flow chart, Process description, process flow chart, data dictionary, input forms/files, output reports/files, computer operator run manual, user manual, data entry instructions, report distribution. The auditee documentation should be reviewed to see whether it conforms to these accepted standards. 3. The following EDP personnel may be interviewed by EDP manager, system analysts, systems development group, supervisors. The purpose of the interview is to obtain the following information. -

whether there is any wastage/redundancy in relation to the work load;

-

case of maintenance/operation of the application systems;

-

processing problems such as returns due to inefficient system design/programme coding weakness;

-

cost effectiveness of ongoing applications systems.

4. In the audit of applications systems, the most important method of assessing the usefulness of applications is to survey the various users and obtain their views through interviews and questionnaires. The following points may be included:

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-

Are the users sufficiently aware of what the systems will do for them?

-

Are users sufficiently involved in system review, manual forms design, clerical procedures, input/output controls, testing etc.?

-

Are users aware of responsibilities to make data available, to ensure that all data are adequately processed, to arrange back-up facilities and recovery procedure and to initiate action to incorporate changes in regulations?

-

What percentage of time the user makes use of computer output?

-

To what extent the user considers the application important and relevant?

-

Whether the computer output for the most part has to be reconciled with other documents before it is relied upon?

-

Is the computer output accurate, timely and easy to use?

5. The audit of an application system which is operational involves verification of input/output controls, processing controls and audit trail. Testimonial evidence may be obtained through the following questionnaire in the course of audit to come to a reasonable conclusion regarding existence of controls and their adequacy. -

Whether the data processed are genuine, complete, accurate and not provisional?

-

Whether expected output is produced and distributed on time?

-

Whether application programmes process the data as intended and accurately (refer EDP audit techniques)?

-

Whether a complete audit trail is available for tracing back a transaction from the final result to the initial input?

-

Whether the data and changes to it are authorised by appropriate authority both in the user and computer departments?

-

Whether schedules for receipt of input data are maintained and what is the extent of compliance?

-

Whether there is a preliminary check on input data to ensure completeness?

-

Whether the application system provides for the following programmed controls; i.

check for missing/duplicate transactions; e.g.

ii.

check for continuity of goods invoice numbers issued by a station for missing numbers

iii.

more than one subscription for the same month for one Provident Fund account number

iv.

controls on rejected items and keeping them under computer suspense;

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v.

the monthly treasury transactions are rejected if they do not have valid heads of account as given in the budget master. The rejected items are kept under suspense and control totals along with valid transactions tallied with the cash account and list of payments.

vi.

Rejection of issue notes in a stores accounting system due to want of balance.

vii.

Input validation for data purification(alpha-numeric checks to conform to data types), personal identity number should be numeric, station name field is aplabetic.

viii.

Station name field is alphabetic(depends on system requirements), Limit/range checks; e.g.

ix.

Overflow checks; e.g.

x.

Some fields should not be blanks or zeros(mandatory fields), e.g.

xi.

In a leave accounting system, the leave type code cannot be left blank since the entire transaction will be invalid without this.

xii.

A treasury transaction should indicate in the relevant fields whether it is voted/charged, plan/non-plan and not be left blank.

xiii.

Check digits; e.g.

xiv.

In a payroll system, the account number, which is a control field to identify an employee, has a built-in check digit. The programme works out the check digit on the basis of the account number input and verifies the correctness of the check digit given.

xv.

Compatibility checks; e.g. if the transaction type is for official receipts in a financial accounting system, the account cannot be a negative value.

xvi.

Totals for a batch/lot; e.g. the batch total for a major head under a treasury is worked out on the computer and tallied with the total given in the schedule of payments/receipts for that batch (to ensure complete accounting of transactions in a batch).

xvii.

Record totals summaries for reconciliation; e.g. in a freight accounting system, when a goods basic tape is created it gives the total number of records, which should tally with the total number of invoices input.

xviii. Whether output reports are test-checked before being distributed to the user department and the output is produced in accordance with a prescribed schedule. 1712. Audit Trail and its Objectives:

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1. The audit trail objective is to obtain sufficient evidential matter regarding the reliability and integrity of the application system. To achieve this, the audit trail should control enough information to allow management, the auditor, and the user; -

to recreate processing action; to verify summary totals; and to trace the source of error and abuse.

2. The audit trail should include the following information: -

System information including start up time, stop time, restarts, recovery etc.

-

Transaction information including input items which change the database, control totals and rejected items(relevant to database application).

-

Communication information including terminal log on/off, password use, security violation, netword changes and transmission statistics(relevant to transaction processing (TP) applications).

3. In a computer system, the audit trail may not always be apparent as in a manual system since data are often retained in magnetic media and output is limited to a small number of total items processed with reports produced only on exception basis. The general procedure is to first investigate control totals and run to run totals within the whole system and then to check and substantiate the audit trail by limited checking through records and files or by taking intermediate printouts of audit interest. If the design of the computer system does not provide for adequate audit trail, this should be brought out in audit review, highlighting control weaknesses or lack of controls in the system. Apart from this, there is a possibility of frauds, which might go undetected due to control weaknesses. 1713. Audit of Database Systems: 1. The advent of database management system(DBMS) with the new generation of computers has brought about a shift from conventional batch processing to on-line interactive processing. DBMS requirements are developed in the light of a set of basic objectives; viz. data independence, relatability, non-redundancy, integrity, security, performance and compatibility with the existing concepts. 2. While reviewing the DBMS, in addition to general guidelines given for the audit of application systems, the auditor should see that; -

The DBMS in use meets the requirements in the light of the basic objectives stated above;

-

Procedures exist for •

Access controls (user's "right to know" and need to know basis with field level access control definitions).

•

Maintenance of back-up

•

Journalising all transactions for reconstruction in case of a crash

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•

Roll back and recovery, and

•

Ensuring data integrity by protecting the stored data from being contaminated through exclusive and shared control and by imposing restrictions on the values that can be assigned to data items. When an application programme terminates part way through an update procedure, it should be possible to reverse the effect of changes to the database;

-

The data dictionary is complete and update and could be relied upon as a comprehensive documentation; and

-

There is a data administrator who is assigned the responsibility for describing the data, defining the data relationship and mappings, establishing data security rules, specifying performance measurement procedures and evaluating the system on the basis of the results.

1714. Review of Microcomputers/Office Automation: 1. In the past any cost justification of computer facilities was relatively straight forward because savings in staff could very easily be identified and these savings usually outweighed the cost of computerised applications. This approach is no longer practical as the advent of microcomputers and the introduction of information technology have shifted the emphasis from cost justification to improvement in the quality of service and better management control of the resources available. This aspect should be borne in mind by the auditor while reviewing microcomputer based system. 2. The purpose of audit is to see: -

whether there is a comprehensive EDP Policy for the organisation;

-

that there is no unplanned proliferation of computers due to lack of coordination of EDP facilities; and

-

that only persons with extensive specialised training are employed to use microcomputers, to ensure quality and standards of data processing(when tools are introduced and used without detailed understanding, the potential for misapplication always exists)

3. The software industry is full of "user-friendly" packages for microcomputer systems, but in many cases these programmes have limited capabilities and are more suitable for the novice operator. Users quite often do not consider what their requirements are and this can have far reaching consequences with regard to acceptance of the system. 4. Audit implications of office automation steam from weakening overall controls in the office automation environment. Major control implications of office automation are listed below: -

loss of audit trail due to reduction/elimination of paper work;

-

rejection of source documents/authorisation and authentication of input;

-

information access by more people and hence possible abuse;

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-

creation of sub-standard systems, and

-

inadequate back-up and recovery facilities.

These control implications apply equally to any microcomputer based system in operation. Therefore, audit should verify that at least the controls, procedures and security aspects that are currently available in the manual system are taken care of, if not improved upon, while designing an automated system. In addition, audit should verify that network security, proper communication provision and user interface exist where automated systems are installed and in use. 5. In general, information should be automated only when there are clear benefits to be gained from doing so. For example, automation makes sense if the volume of information is large, requiring analysis in several different ways and/or used by various users in different ways. 1715. EDP Audit Techniques: 1. EDP audit techniques refer to the use of computers, including software, as a tool to independently test computer data of audit interest. 2. Some well-established techniques are; -

collecting and processing a set of test data that reflects all the variants of data and errors which can arise in an application system at different times;

-

using integrated test facilities, built into the system by the auditee to help the auditor in his requirements, as one of the users of the system;

-

simulating the auditee's application programmes using audit software to verify the results of processings;

-

reviewing programme listing periodically to see that there are no unauthorised alterations to the programmes;

-

using either commercial software or inhouse developed programmes to interrogate and retrieve data applying selection criteria and to perform calculations; and

-

extracting samples of data from the auditee data base/files, using sampling techniques, for post analysis and review. The nature of data and type of analysis required determine what technique is to be employed. The auditor should give the sample size and design.

3. Computer audit techniques are employed for: -

verification of ledger balances and control totals independently;

-

recalculation of critical computerised calculations to check mathematical correctness;

-

range checks to verify the working of computer-based controls and testing for exception conditions;

-

testing the validity of data which have gone into the master file;

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Ch.XVII - Page 14 of 17

-

detection of data abuse/frauds; and

-

substantive testing with large volumes of data which is difficult, if not impossible, in a manual audit process.

4. The particular computer audit technique employed depends on the type of application system under review, the extent of testing required and the availability of resources in terms of computer facilities and the level of EDP skills among the audit staff (audit skills are assumed here). Where data volume is small and adequate printed information is available to carry out a meaningful clerical audit, there is no need to employ computer techniques, which are costly and time consuming. To elaborate further, the auditor should break up his project of application system audit into three stages. In the first stage, he will carry out the examination of audit trails, intermediate printouts as required, system logs, operational controls. As a result of audit in the first stage, if the auditor feels that the adequacy of controls requires further verification, in the second stage he can carry out compliance testing by using the test check method and integrated test facilities with resident audit programmes. If the compliance testing exposes some control weaknesses, substantive testing may be resorted to in the third and final stage using retrieval software and simulation techniques with audit software. 5. Some EDP audit techniques are briefly described; 1716. Test Deck Method: 1. In this method, the auditor prepares both real and fictitious data to test the accuracy of the programmes. In designing the test data, care should be taken to include all variants to test all possible conditions. Using this techniques audit can check whether; -

the system and programmes operate as specified in the documentation;

-

only valid data is accepted and processed correctly;

-

erroneous data is rejected as anticipated; and

-

exception conditions are tested by the application programmes to avoid absurd results.

2. Integrated Test Facilities: This technique requires involvement of auditors at the system development stage. Separate programmes are written exclusively for audit use and are operated by auditors at periodic intervals. These programmes reside in the software as an integral part of the application system. For example, all the transactions which affect the master file could be written into another file for post audit and review. Similarly, audit modules could be built into the system to check exception conditions, like stocks below minimum levels, issues without balances and purchases of items when no issues have been recorded, in the case of an inventory control system. 3. Simulation Using Audit Programmes: While, in the test deck method, the auditee's programmes are tested with the auditor's data, in the simulation method, the auditor uses his own software to test the auditee's data and then compare the results of this independent processing with those of the auditee. This is a very time consuming and expensive method. Moreover, this calls for special programming skills on the part of the auditor. Employment of this technique is generally discouraged. It is certainly not suited to our environment since we do not have the required time or resources. The time

429

Ch.XVII - Page 15 of 17

required for developing simulated systems could be profitably employed in developing new systems of audit interest. 4. Programme Review and Comparison: This technique requires programming skills on the part of the auditor to periodically go through the programme listing and compare such listings for each application system. It is a time consuming method. There are utilities available today for comparison of files on the computer itself. However, the examination of programme listings can only be done manually. This technique is not recommended for our environment since we do not have the time or resources to do this job. Moreover, the object module could be manipulated by a skilled programmer without touching the source programme files; in such situation, the examination/comparison of programme files does not serve the purpose. 5. Retrieval/Interrogation Programmes: Retrieval software should be comprehensive and include the following functional routines/facilities to: -

retrieve record by record from a file;

-

total value fields for reconciling computer figures with booked figures;

-

perform calculations on numeric data to check the resident modules' mathematical correctness;

-

sort and merge data in any desired sequence;

-

select data from an indexed file on any desired criteria; and

-

print reports for post-audit analysis and review

There are a number of commercial packages like FILETAB, EASYSTRIEVE, IDEA available off the shelf. There are versions for use both on conventional files and data base systems. The auditor can also develop inhouse retrieval programmes. Such projects are not only expensive but also call for high levels of programming skills and knowledge of a variety of computer languages. Also auditee data files would require conversion to an acceptable format before retrieval software can be used. Even for using commercially developed packages, the auditor is required to possess: -

knowledge of the computer system with the auditee;

-

programming skills to contract queries X-retrieve data;

-

knowledge of the operational aspect of the package; and

-

the layout of data files subject to examination. (Availability of computer resources and time is assumed).

Today many DBMSs have built-in query and report writer facilities. Unstructured queries on the data files are also possible in some advanced systems. These utilities could be profitably employed for audit purposes. The auditor will be able to obtain the relevant information from the auditee's computer centre. The distinct advantages of retrieval packages over other methods are 100 per cent review of data and accuracy of processing and effective use of the auditor's time in analysing results of interrogation. Use of retrieval software will, however, always remain a

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problem area primarily because of the multitude of hardware and software systems in use in various departments, necessitating expertise in several programming languages. 1717. Work Papers of EDP Audit: The preceding processes are only tools in the hands of the artisan, namely the EDP auditor. The shape of the final product depends on his level of skills. The work papers at the end of an EDP audit exercise constitute the evidential matter on which conclusions will be based. Stated broadly, the contents should address the following issues: -

Does the auditee have an EDP Policy or clearly defined objectives for acquiring EDP facilities?

-

How much has been invested in commissioning the facilities and the details of inventory, both hardware and software?

-

Are the installed EDP facilities adequate to meet the objectives?

-

How are the resources utilised?

-

What are the applications processed on the EDP facilities and their utility and impact on management/users?

-

Is there a relationship between the management objectives and the products churned out by the computer centre?

-

What is the extent of controls with reference to installation, applications and processing to ensure safety of assets, data integrity and reliability of the end products?

-

Is there a review of EDP functioning by management and, if so what is the periodicity?

-

Where does the EDP set-up fit in, considering the overall auditee organisational set up and what is the position of the EDP incharge?

431

Ch.XVII - Page 1 of 17

CHAPTER - XVIII COSTING CELL SECTION 1801. Costing Cell has been constituted w.e.f. July 2003 to review the reports of the costing cells of S.C. Railway. (Para 3.7.3 of report of committee on Railway Audit Norms) Costing Cell is entrusted with the following items of work. 1)

Review of report of work study cell: Work study reports which recommend maximum number of posts to be surrendered may be selected after two years of its completion. The review should be conducted annually. (Para No. 5.2 of minutes of the Workshop on costing in Indian Railways held in the O/O PDA/CR on 25th and 26th April 2005)

2)

Review of introduction / change in frequency / extension of passenger trains – 6 months after introduction. 2 to 5 existing trains at random duly selected by PDA are to be reviewed for their profitability.

3)

Section has to review areas, which are not covered by Railway costing cells such as expenditure incurred on operation and maintenance of track, track machines, rolling stock, etc. (Para 3.7.1 of RANC)

1802. Review of Work Study Reports: A Work Study Organisation is functioning on each Zonal Railway for undertaking a detailed study of specific projects on the Railway with a view to streamlining and standardising the working procedures, cutting down unproductive work and achieving economy in expenditure and better utilisation of resources. The work study may be of projects initiated by the Railway Board, those suggested by Railway and approved by the Railway Board or those referred by Heads of Departments. After the work study of a selected project is completed, a Report is compiled bringing out the findings and recommendations of the Work Study Group. The Work Study Reports should be reviewed in audit as and when received. For this purpose, a register should be maintained for recording the particulars of : (i)

Projects selected by the Railway Board/General Manager/Head of Department for work study.

(ii)

Period during which the work study in respect of item (i) above was completed and the date of issue of the work study report.

(iii)

Month in which the Work Study Report was reviewed in Audit.

(iv)

The remarks/comments as a result of the review.

While noting the particulars in the Register, the continuity in the numbering of the Work Study Reports should be watched.

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Ch.XVII - Page 2 of 17

This register should be submitted to the Principal Director of Audit for information every month during the first week. Besides, whenever a Work Study Report is received by the Section, within a month, they should submit a note to the Principal Director of Audit inter-alia bringing out the interesting points/aspects which could usefully be brought to the notice of the field units for further probe/action/guidance. (Authority: P.O.O. No.49 dated 16.8.1973 and P.O.O.No.78 dated 1.6.1985).

417

MONTHLY REPORT OF THE STATE OF WORK IN _____________________ SECTION/DIVISIONAL AUDIT OFFICE _____________ FOR THE MONTH OF ________________ I.

(a) Items of work/return etc. shown as in arrears in the last monthly report (see section II) and the extent to which they have been cleared, with reasons for items still outstanding:

Nature of arrears/name of return

I.

Due date

Actual date of despatch in respect of items cleared

Reasons for delay in respect of items still outstanding

(b) Returns/registers not despatched/submitted/received or despatched/submitted/received late during the month:

Name of return/register

To/from Whom due

Due date

Actual date of despatch/ receipt

Reasons for delay and probable date of despatch/action taken to expedite the receipt

I. © Outward submission of occasional returns due for the month: Details of outward references outstanding for 6 months and more and action taken for their clearance: Year

No. of items

Action taken for clearance

-2Month II. Sl. No.

INWARD REFERENCES: Particulars

Ordinary letters (B - Dak)

01. No. of letters outstanding as per last report. 02. Total number of letters received during the month. 03. TOTAL (1 + 2) 04. No. of letters disposed off 05. Balance Outstanding 06. Number of letters outstanding for more than 1 month, 2 months, 3 months etc. 07. No.of CAG's letters for which final replies are yet to be sent 08. Particulars of outstanding tour notes of Principal Director of Audit/ Director/Deputy Director

CAG/Rly Bd. Lrs. (A - Dak)

DETAILS OF 6 & 7 -----------------------------------------------------------------------------Sl. Letter No. From whom Subject Reasons No. and date received for delay in disposal

-3Month III. (a) PENDING CASES: (Details of cases pending over 6 months and action taken to clear the cases are to be indicated):

III (b)-ROC (Details of cases pending over 6 months and action taken to clear the cases are to be indicated):

IV.

ARREARS IN AUDIT WORK: A) External i)

Particulars

Arrears due to arrears in Accounts Office: Total Man days ________________________________ Month of Month of Account Audit (Year-wise breakup may be indicated)

No. of vouchers/ documents

Arrears in terms of man-days

Probable date of clearance

Reasons for non-clearance and efforts made

-4-

Month ii) Particulars

Arrears due to non-receipt of vouchers/documents. Total Man-days ________________________ Month of Account

Month of Audit

Number of vouchers/ Documents

Arrears in terms of man-days

Probable date of clearance

Reasons for non-clearance and efforts made

(Year-wise and item-wise details may be indicated below together with man-days against each item)

-5Month B) Internal: Total Man-days: ___________________________ i)

Detailed report on each item of arrears (i.e. Inspections and Central Audit in Man-days may be furnished here).

ii)

Date of selection/completion of Original Audit/Post Review by B.O./A.Au.O/S.O.

Officer doing Original Audit/Post Review

Audit Officer/Sr.Audit Officer Section Officer(I)/ Asstt. Audit Officer(I) Section Officer(II)/ Asstt. Audit Officer(II) Post review in terms of Para 156 of Railway Audit Manual

ORIGINAL AUDIT POST REVIEW CURRENT REVIEW ----------------------------------------------------------------------------------------------------------------------------Date of Date of Date of Date of Date of Date of Selection Completion Selection Completion Selection Completion

-6Month V.

INSPECTIONS: a) Progress of Inspection (Executive Office & R.M.W)

No. of Inspections Reasons Inspection last day of the previous month

1 Executive

R.M.W

Inspections to be conducted Inspections actually completed during the month during the month as per approved programme ------------------------------------------------------------------------ Number Name of Offices Number Name of Offices 2 3

Date of

No.of Inspections in arrears on the

Reasons for the

Inspection

last day of the month(1+2-3)

arrears

From-To 4

5

6

-7Month b) Issue of Inspection Reports: Arrears in the issue of Inspection Reports on the last day of the previous month

Reports falling due to be issued during the month in respect of the offices inspected -------------------------------------Number Name of Offices

Dates of Date ofDate I.R. Date ofBrief Audit submipassed issue reasons conducted ssion of by G.O./ of I.R. for the I.R. to Pr.D.A. delay From-To Group Officer/ Pr.D.A. __1__________________2_______________3___________4____________5___________6____________7__________8_______________

C. Details of offices against which NIL Reports are proposed & approved.

-8Month VI.

(a) Outstanding Part.I Inspection Reports, Part.I Test Audit Notes and Special Letters (N.B.: Additional sheet may be attached if the space provided is found to be insufficient). i) Part.I Inspection Reports:

Year

Opening Balance ----------No. Paras

Issues -------------No. Paras

Closure ---------------No. Paras

Closing Balance ------------------No. Paras

Money Value (Rs)

Details of the offices on which the Part I IRs were issued during the month. Office/ Report No.

-9Case No.& Date

Date of latest reminder/ Interim reply received

Month Level at which reminder was issued

-10ii) Part.I Audit Notes: Year

Opening Balance -------------No. Paras

Issues

Closure

Closing Balance --------------- --------------- -----------------No. Paras No. Paras No. Paras

Money Value (in Rs)

Case No.

Date of latest reminder and level at which issued/ Interim reply received.

-11Month iii) Paras of Part-I Inspection Reports/Audit Notes issued during the month: No. assigned to each Para closed during the month while issuing the original objection

a) Part-I Inspection/ Reports/AN.

b) Part-II. Inspection Reports/ Audit Notes:

Money value of each Para closed during the month (in Rs)

-12Month (iv) Special Letter Category - 'A': Year

Opening Balance -------------No. Paras

Issues

Closure

Closing Balance --------------- --------------- -----------------No. Paras No. Paras No. Paras

Money Value (in lakhs of Rs.)

Case No.

Status of the case

-13Month (v) Special Letters Category - 'B': Year

Opening Balance -------------No. Paras

Issues

Closure

Closing Balance --------------- --------------- -----------------No. Paras No. Paras No. Paras

Money Value (in lakhs of Rs.)

Case No.

Date of latest reminder and level at which issued/ Interim reply received.

-14Month (vi) Paras of Special Letters closed during the month: No. assigned to each Para closed during the month while issuing the original objection

a) Special Letters/Category 'A'

b) Special Letters/Category 'B'

Money value of each Para closed during the month

-15Month VIII (b) Outstanding Inspection Reports (Part-II) and Test Audit Notes (Part-II): INSPECTION REPORTS (PART-II): Period

Opening Balance -------------No. Paras

Issued

Cleared

Closing Balance --------------- --------------- -----------------No. Paras No. Paras No. Paras

Money Value (in thousands of Rs.)

Action taken for the clearance.

Cleared

Money Value (in thousands of Rs.)

Action taken for the clearance

TEST AUDIT NOTES (PART-II): Period

Opening Balance -------------No. Paras

Issued

Closing Balance --------------- --------------- -----------------No. Paras No. Paras No. Paras

-16Information of arrears (in man-days) Section INTERNAL No. ------------------------------Arrears at the end of Previous Current Mn / Qtr Mn / Qtr IVA(i)

Increase (+) Decrease (-)

EXTERNAL ------------------------------Arrears at the end of Previous Current Mn / Qtr Mn / Qtr

Month Increase (+) Decrease (-)

IVA(ii) IVB V (a) V (b) I certify to the best of my knowledge and belief that the work is upto-date and test audit and other work required to be completed upto the end of the month/quarter has been completed with the exception of the arrears detailed above.

Section Officer/ Asstt. Audit Officer

Signature of Divisional Audit Officer/ Audit Officer/Sr.Audit Officer Dated:

A.Au.O.(COR)

Senior Audit Officer(COR)

Deputy Director/Director

Principal Director of Audit

CERTIFICATE ON THE CHECK OF PASSES

I certify that I have verified / checked Passes and PTOs issued by the Administration section during the Quarter Ending 30.06.2007. Remarks in the check of Passes are given in the ‘Note’ enclosed. I certify that the continuity of number of unused folios of Passes and PTO Books has been verified by me.

Encl: One ‘Note. SR. AUDIT OFFICER (COR)

OFFICE NOTE Sub: Check of Passes and PTOs issued from 01.04.2007 to 30.06.2007 by the Administration Section. *

*

*

The following observations are made on the check of Passes. 1. As per the provisions of OM (483 Para read with P.O.O. 94) Passes on Home line and PTOs to Group ‘C’ and ‘D’ are to be signed and issued by the Section Officer (Admn.) and all other Passes / PTOs are to be issued by Audit Officer (Admn.). However, Second class Passes on other than home line are also being issued by the Section Officer (Admn.).

This may please be stopped forth with until revised

procedure / decision taken for the purpose. 2. Complimentary Passes:

Declarations from Retired employees for inclusion of

Unmarried daughters, Widow mother in Passes are not available in the file given for verification, in respect of the following. a. Sri N.V.N. Charyulu, Retd. Au.O. b. Sri K.V. Thammi Naidu, Retd. A.Au.O. 3. The declaration given by Sri S.V. Sarma, Retd. Au.O. including his Brother aged 63 years on Dependant is not valid under Pass Rules. 4. As per extant provision, declarations have to be obtained from Staff / Retired Officials once in 5 years who include dependents in their Passes. These have to be verified and filed for reference.

The file given for verification does not contain

declaration from all staff members of in the main office and Annex Building. This may be looked into and action taken for obtaining the declaration afresh from all the above staff members. 5. Return of Passes: As per the Pass Rules, staff have to return the Passes unused / used with one month from the date of expiry of the availability period duly filling the columns and certificate on the reverse of the Pass.

The staff members who have

been listed in the Annexure have members who have been listed in the Annexure, have not returned the Passes within the mandatory time.

Action may be taken as

prescribed in the Pass Rules.

SR. AUDIT OFFICER (COR)

NON RETURN OF PASSES AFTER UTILISATION Ist CLASS ‘A’ No. 196390 of 23.04.2007

Available Upto 30.04.2007 (C )

No. 196393 of 27.04.2007 No. 196400 of 08.05.2007 No. 196417 of 06.06.2007

30.04.2007 (P) 22.05.2007 (On-Duty) 05.09.2007 (P)

No. 196423 of 18.06.2007

02.07.2007 (On-Duty)

No. 196302 of 22.01.2007

21.04.2007 Ist CLASS 30.04.2007 (C ) 30.04.2007 (P) 27.03.2007 (D) 05.04.2007 (D) 30.04.2007 (C )

No. 660644 of 09.03.2007 No. 660645 of 12.03.2007 No. 660646 of 12.03.2007 No. 660653 of 15.03.2007 No. 660658 of 26.03.2007

Name (S/Sri/Smt.) M. Mukteswara Rao, Sr.Au.O. (R ) V. Nageswara Rao, Sr.Au.O. V.S.V. Prakash, Au.O. K. Mani, Dy.Dir. (Kannur to Secunderabad for self) R. Chandra Sekhar (issued from SC to Chandigarh B/J, NGP, NDLS) Sri Ramesh

Sheela Seshadri, Sr.Ar. (R ) V. Nagesh Kumar, HAW P. Ravi Kumar, S.O. Ch.T.V.S. Prasada Rao, A.Au.O. P. Suguna Sekhara Rao, S/o Sri P. Atchyuta Rao No. 660659 of 26.03.2007 30.04.2007 (C ) C. Vittal Rao No. 660667 of 04.04.2007 09.04.2007 (D) T. Sudhakar Rao, Sr.Ar. No. 660677 of 11.04.2007 10.07.2007 (P) K.S. Bhoopathi, Sr.Ar. No. 660690 of 25.04.2007 11.05.2007 (D) D.V.V.R. Bhattar Ist CLASS ‘A’ PASSES (NON-RETURN) No. 196307 of 29.01.2007 31.03.2007 Alex Chariyan No. 196310 of 01.02.2007 30.04.2007 K. Srinivasan No. 196315 of 02.02.2007 01.05.2007 Mani. K Dy.Dir. No. 196321 of 06.02.2007 31.03.2007 S.R. Reddy No. 196328 & 329 of 31.03.2007 K.C. Jhansi 09.02.2007 No. 196335 of 18.02.2007 30.04.2007 V. Gopala Rao No. 196336 of 19.02.2007 31.03.2007 C.R. Sarma No. 196348 of 07.03.2007 30.04.2007 R. chandra Sekhar No. 196350 of 12.03.2007 11.07.2007 Annaji Rao, SN No. 196353 of 14.03.2007 26.03.2007 (O/D) P.Linga Brahmachary No. 196356 of 14.03.2007 30.04.2007 K.V. Thimmaji Rao No. 196358 of 15.03.2007 SC to CEN (O/D) V. Nageswara Rao 05.04.2007 No. 196365 of 16.03.2007 30.04.2007 B. Ratna Kumari No. 196368 & 369 of 30.04.2007 (C ) N.V.J. Das 23.03.2007 No. 196374 of 26.03.2007 30.04.2007 (C ) N.V.N. Charyulu No. 196375 of 28.03.2007 27.06.2007 K.C. Thomas No. 196383 of 10.04.2007 30.04.2007 N.V.N. Charyulu II CLASS No. 315102 of 25.01.2007 V. Vijay, Sr.Ar. 30.04.2007 No. 315103 of 29.01.2007 A.V. Kannan, W/M 30.04.2007 No. 315122 of 23.02.2007 Pushpanjali Gupta, JHT 22.05.2007 No. 315128 of 27.02.2007 Pushpanjali Gupta, JHT 31.03.2007 No. 315144 of 12.04.2007 Zahyda Khatoon, Sr.Ar. 30.04.2007

Organisational set up of the O/o PRINCIPAL DIRECTOR OF AUDIT

PRINCIPAL DIRECTOR OF AUDITT

DIRECTOR

Sr.Audit Officers/ Audit Officers

DEPUTY DIRECTOR

Sr.Audit Officers/ Audit Officers

1. Secretary to Principal p Director of Audit-cumCoordination

Sr.Audit Officers/ Audit Officers

1. Establishment Headquarters

2. Reports

1. Administration & Bills

2. Expenditure Headquarters

3. Special Audit Groups(also known as ECPA Sections) including Internal Audit and Intensified Inspections

2. Traffic Audit

3. Inspection Headquarters

4. EDP & IT Audit

3. Divisions at Secunderabad, Hyderabad, Hubli, Vijayawada & Guntakal

4. Books & Budget Headquarters

5. Stores Headquarters

6. Contract Audit

7. Workshops/Lallaguda, Hubli, Guntapalli and Tirupathi

8. Construction units at Secunderabad, Vijayawada and Rajahmundry

9 RE/BZA 9. (Residuary items)