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Document No: FX/FE

January 01, 2009

FINANCE SECTION

PROCESS MANUAL

Office of Sr. DIVISIONAL FINANCE MANAGER


WEST CENTRAL RAILWAY, BHOPAL

Telefax: : 0755-2457138
Railway Phone : 5064
E-mail : sofx@rediffmail.com

Compiled By CO-ordinated by Reviewed By Approved by

(JITENDRA SAXENA) (D.N.DWIVEDI) (B.K.SEN) (HIRA BALLABH)


SSO/FX SSO/ISO DFM SR.DFM
SR.DFM’S Office, West Central Railway, Bhopal Process Manual

CONTENTS

Chapter Review No/Date No. of


Title
No. 00 01 02 Pages
1 Abbreviations 01/01/09 02

2 Canons of Financial Property 01/01/09 01

3 Introduction 01/01/09 01

4 Source and References 01/01/09 01

5 Scope of Work 01/01/09 01

6 Section Procedure 01/01/09 24

7 Activity/Responsibility Chart 01/01/09 01

8 Monthly Reporting Sheet 01/01/09 01

9 Responsibility Code Allocation Sheet 01/01/09 01

10 Organization Chart 01/01/09 01

11 Measurable Parameter 01/01/09 01

12 List Of Record 01/01/09 01

13 Section Flow Chart 01/01/09 03

14 Changes to Manual 01/01/09 01


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

ABBREVIATIONS
S.No. Term Expansion
1. AA Accounts Assistant
2. AAC Average Annual Consumption
3. AGM Additional General Manager
4. CRRM Credit for Released Material
5. D&G Charges Direct and General Charges
6. DA Dearness Allowance
7. DFM Divisional Finance Manager
8. DPWP/DWP Divisional Preliminary Works Program
9. DRM Divisional Railway Manager
10. FA&CAO Finance Advisor and Chief Accounts Officer
11. FSC Charges Foreign Service Contribution Charges
12. GB Green Book
13. GM General Manager
14. GMT Gross Metric Tonne
15. HQ Headquarter
16. IRPWM Indian Railway P.way Manual
17. IRS Indian Railway Specification
18. LAR Last Accepted Rate
19. M&P Machinery And Plant
20. NIT Notification for Invitation of Tender
21. NS Item Non Scheduled Item
22. OOT Out Of Turn
23. PAC Propriety Article Certificate
24. PB Pink Book
25. PH Plan Head

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

26. PWP Preliminary Works Program


27. RSP Rolling Stock Program
28. SOPGEN Schedule of Power (General)
29. SOR Schedule Of Rate
30. SR.DEN (CO.) Senior Divisional Engineer( Co Ordination)
31. SR.DFM Senior Divisional Finance Manager
32. SSO Senior Section Officer
33. TC Tender Committee
34. TCP Tender Committee Proceedings

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SR.DFM'S OFFICE , WEST CENTRAL RAILWAY BHOPAL Process Manual

MONTHLY REPORT (Finance & FE Section)


SEC: FX
Month:

Monthly Processed Status


S. No. Activity Target Period of Clearing Remarks, if any
Processed Processed
Total Recd
In Time not in time

1 FX PROPOSAL
2 FE PROPOSAL
3 TENDER FILES
4 INDENT

SSO - FINANCE/FE SR.DFM


(Name & Seal) (Name & Seal)

FX SECTION CHAPTER 10 REV 00 01.01.09 PAGE 1 OF 1 APPROVED BY____________


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

MEASURABLE PARAMETERS

TARGETS fixed for various activities FX & FE section.

SR.NO ACTIVITY TARGET PERIOD FOR


CLEARANCE
1 Scrutiny of all nature Fx and FE 7 Working Days for FX
proposals/Indents for (Stock and Non proposals/indent
Stock items) 10 working Days for FE
proposals
2 Brief Notes and Comparative 4 Working Days
Statement
3 Vetting of Contract Agreement 3 Working Days

IMPORTANT NOTE: It is to be ensured by the concerned section in charge


that the updating of system is take place within barest minimum time and any
revision, on account of new rule/instruction from Rly Bd/ HQ’s warrants
revision of process manual, is taken place within one week of receipt of letter.
However, to ensue the task “On EVERY 1ST DAY OF THE MONTH THE
SECTIN INCHARGE WILL REVIEW THE SYSTEM AND ENSURE THAT ALL
UPDATION /REVISION DURING THE MONTH ARE TAKEN PLACE.”

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SR.DFM's Office West Central Railway Bhopal LIST OF RECORDS Process Manual

FORMAT
Sr. RECORD RETENTIO
No.
RECORD NAME RECORD No. No. ,
COSTODIAN N PERIOD
If any.
1 TENDER BRIEF NOTE REGISTER WCR/Acs/BPL/FIN/BRIEF NOTE REGISTER NA SO 5 YEAR
2 REQUISTION VETTING REGISTER WCR/Acs/BPL/FIN/REQUISTION VETTING REGISTER NA AA 3 YEAR

3 CONTRACT VETTING REGISTER WCR/Acs/BPL/FIN/CONTRACT VETTING REGISTER NA AA 3 YEAR

4 DWP PROPOSAL & ESTIMATE VETTING WCR/Acs/BPL/FIN/DWP PROPOSAL & ESTT NA AA 3 YEAR
REGISTER VETTING REGISTER
5 WORKS PROPOSAL VETTING REGISTER WCR/Acs/BPL/FIN/WORKS PROPOSAL VETTING NA AA 3 YEAR
REGISTER
6 W.P.ESTIMATE VETTING REGISTER WCR/Acs/BPL/FIN/W.P.ESTIMATE VETTING NA AA 3 YEAR
REGISTER
7 REVENUE ESTIMATE VETTING WCR/Acs/BPL/FIN/REVENUE ESTIMATE VETTING NA AA 3 YEAR
REGISTER REGISTER
8 SAVING REGISTER WCR/Acs/BPL/FIN/SAVING REGISTER NA AA 3 YEAR
9 CEILING LIMIT REGISTER WCR/Acs/BPL/FIN/CEILING LIMIT REGISTER NA AA 3 YEAR
10 POLICY FILE ON FE MATTER WCR/Acs/BPL/FIN/POLICY/FE NA AA 10 YEAR
11 POLICY FILE ON MISC.MATTER WCR/Acs/BPL/FIN/POLICY/MISC. NA AA 10 YEAR
12 POLICY FILE ON SOPGEN WCR/Acs/BPL/FIN/POLICY/SOPGEN NA AA 10 YEAR
13 POLICY FILE ON WORKS PROGRAMME WCR/Acs/BPL/FIN/POLICY/W.P. NA AA 10 YEAR
14 POLICY FILE ON FURNITURE WCR/Acs/BPL/FIN/POLICY/FURNITURE NA AA 10 YEAR
15 POLICY FILE ON MEDICAL MATTERS WCR/Acs/BPL/FIN/POLICY/MEDICAL MATTER NA AA 10 YEAR
16 POLICY FILE ON S&T & IT WCR/Acs/BPL/FIN/POLICY/S7T IT NA AA 10 YEAR
17 POLICY FILE ON ESTIMATE WCR/Acs/BPL/FIN/POLICY/ESTIMATE NA AA 10 YEAR
18 POLICY FILE ON VEHICLES WCR/Acs/BPL/FIN/POLICY/VEHICLES NA AA 10 YEAR
19 POLICY FILE ON MISC.MATTER WCR/Acs/BPL/FIN/POLICY/ NA AA 10 YEAR
20 POLICY FILE ON NOMINATION OF T.C. WCR/Acs/BPL/FIN/POLICY/TENDER COMMITTEE NA AA 10 YEAR
21 POLICY FILE ON COMMERCIAL MATTER WCR/Acs/BPL/FIN/POLICY/COMMERCIAL MATTERS NA AA 10 YEAR
22 POLICY FILE ON DELEGATION OF WCR/Acs/BPL/FIN/POLICY/D.O.P. NA AA 10 YEAR
POWER
23 POLICY FILE ON CONTRACT & TENDER WCR/Acs/BPL/FIN/POLICY/CONTRACT & TENDER NA AA 10 YEAR

24 POLICY FILE ON AMC WCR/Acs/BPL/FIN/POLICY/AMC NA AA 10 YEAR


25 POLICY FILE ON ELECTRICAL MATTER WCR/Acs/BPL/FIN/POLICY/ELECTRICAL NA AA 10 YEAR

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SR.DFM's Office West Central Railway Bhopal LIST OF RECORDS Process Manual
Sr. FORMAT No. RECORD RETENTION
RECORD NAME RECORD No.
No. , If any. COSTODIAN PERIOD

26 POLICY FILE ON MECHANICAL MATTER WCR/Acs/BPL/FIN/POLICY/MECHANICAL NA AA 10 YEAR


27 POLICY FILE ON TAXES, LABOUR RATE WCR/Acs/BPL/FIN/POLICY/TAXES,LABOUR NA AA 10 YEAR
28 PROPOSAL RECEIPT & DESPATCH (AU 6) WCR/Acs/BPL/FIN/PROPOSAL REC/DES/B-1 NA AA 3 YEAR
REGISTER FOR CLERK B-1
29 PROPOSAL RECEIPT & DESPATCH (AU 6) WCR/Acs/BPL/FIN/PROPOSAL REC/DES/B-2 NA AA 3 YEAR
REGISTER FOR CLERK B-2
30 PROPOSAL RECEIPT & DESPATCH (AU 6) WCR/Acs/BPL/FIN/PROPOSAL REC/DES/B-3 NA AA 3 YEAR
REGISTER FOR CLERK B-3
31 PROPOSAL RECEIPT & DESPATCH (AU 6) WCR/Acs/BPL/FIN/PROPOSAL REC/DES/B-4 NA AA 3 YEAR
REGISTER FOR CLERK B-4
32 PROPOSAL RECEIPT & DESPATCH (AU 6) WCR/Acs/BPL/FIN/PROPOSAL REC/DES/B-5 NA AA 3 YEAR
REGISTER FOR CLERK B-5
33 CORRESPONDENCE FILE OF ENGG WCR/Acs/BPL/FIN/CORRES/DEN/S NA AA 3 YEAR
(SOUTH SECTION),BPL
34 CORRESPONDENCE FILE OF ELECTRICAL (TRS) , WCR/Acs/BPL/FIN/CORRES/TRS NA AA 3 YEAR
ITARSI
35 CORRESPONDENCE FILE OF MECHENICAL WCR/Acs/BPL/FIN/CORRES/SR.DME/BPL NA AA 3 YEAR
BRANCH, BHOPAL.
36 CORRESPONDENCE FILE OF XEN (BRIDGE), WCR/Acs/BPL/FIN/CORRES/BRIDGE NA AA 3 YEAR
BHOPAL
37 CORRESPONDENCE FILE OF ENGG WCR/Acs/BPL/FIN/CORRES/SR.DEN(N) NA AA 3 YEAR
(NORTH SECTION),BHOPAL
38 CORRESPONDENCE FILE OF Sr. DEN WCR/Acs/BPL/FIN/CORRES/SR.DEN(CO) NA AA 3 YEAR
(Co), BHOPAL.
39 CORRESPONDENCE FILE OF ENGG WCR/Acs/BPL/FIN/CORRES/DEN (C ) NA AA 3 YEAR
(CENTRAL SECTION), BPL.
40 CORRESPONDENCE FILE OF COMMERCIAL WCR/Acs/BPL/FIN/CORRES/COMMERCIAL NA AA 3 YEAR
DEPARTMENT.
41 CORRESPONDENCE FILE OF PERSONNEL & MISC WCR/Acs/BPL/FIN/CORRES/PERSONNEL & MISC. NA AA 3 YEAR
DEPARTMENTS.
42 CORRESPONDENCE FILE OF FINANCE WCR/Acs/BPL/FIN/CORRES/FE NA AA 3 YEAR
ESTABLISHMENT MATTERS.
43 CORRESPONDENCE FILE OF MEDICAL WCR/Acs/BPL/FIN/CORRES/MEDICAL NA AA 3 YEAR
DEPARTMENT.
44 CORRESPONDENCE FILE OF RRB, BHOPAL. WCR/Acs/BPL/FIN/CORRES/RRB NA AA 3 YEAR

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SR.DFM's Office West Central Railway Bhopal LIST OF RECORDS Process Manual
Sr. FORMAT No. RECORD RETENTION
RECORD NAME RECORD No.
No. , If any. COSTODIAN PERIOD

45 CORRESPONDENCE FILE OF WCR/Acs/BPL/FIN/CORRES/ELEC(G) NA AA 3 YEAR


ELECT(General), DEPARTMENT.
46 CORRESPONDENCE FILE OF WCR/Acs/BPL/FIN/CORRES/OPTG NA AA 3 YEAR
OPERATING DEPARTMENT.
47 CORRESPONDENCE FILE OF SAFETY WCR/Acs/BPL/FIN/CORRES/SAFETY NA AA 3 YEAR
DEPARTMENT.
48 CORRESPONDENCE FILE OF WCR/Acs/BPL/FIN/CORRES/TRP NA AA 3 YEAR
ELECTRICAL (TRO), BPL DEPTT.
49 CORRESPONDENCE FILE OF WCR/Acs/BPL/FIN/CORRES/SR.DME(D)/ET NA AA 3 YEAR
MECHENICAL (DIESEL), ITARSI.
50 CORRESPONDENCE FILE OF S&T WCR/Acs/BPL/FIN/CORRES/S&T NA AA 3 YEAR
DEPARTMENT.
51 CORRESPONDENCE FILE OF XEN(MD), WCR/Acs/BPL/FIN/CORRES/XEN(MD) NA AA 3 YEAR
BHOPAL.
52 CORRESPONDENCE FILE OF RPF WCR/Acs/BPL/FIN/CORRES/RPF NA AA 3 YEAR
DEPARTMENT.
53 CORRESPONDENCE FILE OF TRACK WCR/Acs/BPL/FIN/CORRES/T.M. NA AA 3 YEAR
MACHINE DEPARTMENT.
54 CORRESPONDENCE FILE OF TRD WCR/Acs/BPL/FIN/CORRES/TRD NA AA 3 YEAR
DEPARTMENT.
55 CORRESPONDENCE FILE OF STORES WCR/Acs/BPL/FIN/CORRES/STORES NA AA 3 YEAR
DEPARTMENT.
56 CORRESPONDENCE FILE OF WCR/Acs/BPL/FIN/CORRES/XBR PROP NA AA 3 YEAR
XBR(PROPOSAL)
57 FILE CONTAINING T.C. / B.N. OF VETTED WCR/Acs/BPL/FIN/AGREEMENT NA AA 3 YEAR
AGREEMENT
58 TEN DAYS POSITION FILE WCR/Acs/BPL/FIN/10 DAYS POSITION NA AA 3 YEAR

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

Finance Proposal : Process Flow Chart

Receipt of Proposal

Inward number
allotted

Putting up office notes/ letters Return for


for concurrence by A.A. clarifications

Verification by Verification by
respective SSO respective SSO

Perusal by SR.DFM/DFM
Approval of
SR.DF/DFM

For Sr.DFM’s
Dispatch to Respective approval
Unit

Dispatch to respective
st
1 copy – O/c copy Unit.
2nd copy- Executive
3rd copy-XII section

END

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

Finance Section : Brief Note Process Flow Chart

Receipt of Brief Note


form Executive for
Vetting

Inward No.
allotted on the date
of Receipt

Check of Brief Note


with Tender file by
respective SSO

Giving his remarks


on Brief Note for
the perusal of T.C.

Return to Executive
for onward
submission to T.C.

END

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Sr.DFM's OFFICE, West Central Railway, Bhopal Process Manual

Proposal Cases/ Variation proposal: Flow Chart


Receipt of FX , FE Proposal /
Variation Proposal

Entry in the
Proposal register

Scrutinity of Proposals

Vetting/ Concurring or Seeking


Clarification

Put up to DFM/SR.DFM
for Persual/ Approval

Return to Deptt.

END

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CHANGES TO PROCESS MANUAL

Amend New
Date Section Particulars of Amendment
ment Rev No.
No.

01 11-11-09 Chapter 12 List of Record 01

FX SECTION CHAPTER 15 Rev:01 11.11.09 Approved by ________________


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

FX SECTION CHAPTER 15 Rev:01 11.11.09 Approved by ________________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual

Standards of financial propriety


These rules also known as Canon of Financial Propriety are the guiding principals to
be followed while incurring any expenditure from the Public Fund. Therefore, due regard
must be paid to these golden principals as given below:
(1) The expenditure should not prima facie be more than the occasion demands, and
that every Government servant should exercise the same vigilance in respect of
expenditure incurred from public moneys as a person of ordinary prudence would
exercise in respect of the expenditure of his own money.
(2) No authority should exercise its powers of sanctioning expenditure to pass an order,
which will be directly or indirectly to its own advantage.
(3) Public money should not be utilized for the benefit of a particular person or section
of the community unless—
(I) The amount of expenditure involved is insignificant; or
(II) A claim for the amount could be enforced in a court of law; or
(III) The expenditure is in pursuance of a recognized policy or custom.
(4 ) The amount of allowances, such as traveling allowances, granted to meet
expenditure of a particular type, should be so regulated that the allowances are not
on the whole sources of profit to the recipient.
( 116 FI )

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

INTRODUCTION:

Finance Section is one of the most important branches of the Accounts


Department. The Finance Branch advises the Administration on all matters
wherein Railway finances are involved whether for projects or for day-to-day
expenditure. This branch scrutinizes all proposals for expenditure from the
point of view of financial prudence. Finance Branch does not merely comment
on the proposals but goes into all aspects of the proposal including advice for
alternative means of performance in an economical and efficient results.
Finance Branch’s advice is of vital importance as it represents the view of
the case from the financial angle. A review of the proposed scheme of the
Executive brings to light important points, which sometimes changes the
scheme entirely to a new course.
The check exercised by Finance ensures that no unnecessary/avoidable
expenditure is incurred and the projects undertaken by the executives are
financially viable and will achieve the benefits envisaged in the scheme. In the
process of scrutiny of a proposal finance section may go into the questions like
what, why, how, where, when, whom, available alternatives, history,
justifiability and so on.

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Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

Sources and References:


All the Railway Codes and Manuals have Presidential sanction,
therefore; any violation of these provisions would be treated as an
irregularity. The circulars issued by Railway Board are extension of codal
provisions and they bear the same sanctity. In addition to the above
documents, there are Manuals, which are issued on particular subject by
Zonal Headquarters with the approval of FA&CAO. Some of the specific
instructions contained in these manuals may vary from Zone to Zone.
The difference between Codes and Manuals is that the codes give
rulings and authority, i.e. what to do and what no to do, whereas the
Manuals provide the procedure of doing things.
In this Process of framing document on Finance Section, efforts have been
made to incorporate vital aspects of Codes and Manuals and at the same
time standards and targets have also been incorporated.
The working of Finance section is guided by the following documents:
• Indian Railway Accounts Code, Part I
• Indian Railway Finance Code , Part I , II
• Indian Railway Establishment Code, Part I & II,
• Railway Board’s circulars,
• Instruction/guide lines issued from time to time by Railway Board.
• Instruction issued by HQ and compendiums issued bydifferent zones.
The above codes and circulars are also available in the Indian Railway website.
In this document instead of reproducing details from Codes and Manuals the
relevant Para has been quoted in abbreviated form. For example 335 F1 means
paragraph 35 of Chapter III of the Indian Railway Finance Code Volume I.

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

SCOPE OF WORK:

i) SCRUTINY OF PROPOSALS /INDENTS (STOCK AND NON-


STOCK ITEMS): -
a.) On receipt of the proposal/ indent whether such proposal,
indent have been received/ dealt with earlier (for
duplication purpose)is to be checked
b.) If not, it is to be treated as a fresh proposal by allotting a
Inward No. for the same.
c). Putting of notes / letters of concurrence/ vetting and
returning of proposals to the officer concerned.
d). Ensure proper receipt and dispatch of all proposals/
indents/ tender schedules after entering all particulars in
the PC.
ii) VETIING OF CONTRACT AGREEMENT: -
On receipt of the Contract Agreement from various
departments the vetting of the agreement is done.
iii) CHECKING OF BRIEF NOTE AND COMPERATIVE STATEMENT:
-
A. Checking of brief notes and comparative statement received
from executives and sending back to concerned office.
iv) DEALING WITH FINANCE ESTABLISHMENT CASES
Establishment cases pertain to staff matters having
financial implications. There are separate set of rules against
which these proposals are scrutinized.

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

SECTIONAL PROCEDURE
POINTS TO BE CHECKED IN FINANCE SECTION
Though specific points need to be scrutinized for different type of proposals
yet the canons of financial propriety is to be always be kept in mind. As a basic
principle, if a proposal is received for a new work which has not been done so far or
work is proposed to execute differently, finance scrutiny should be very deep.
Following is the list of important points to be seen by Finance section while
scrutinizing different type of proposals and estimates.
1. ESTIMATES

i. Abstract Estimate

 Detailed justification is provided by the branch officer.

 Indication of completion period and currency of the work is given.

 The cost of work with reference to competency of sanction i.e., GM/DRM,


exists.

 Detailed allocation has been recorded.

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


department.

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

 Arithmetical accuracy.

 For Out Of Turn works, reasons for urgency have to be placed on file.
(Ref: PARA 1104 E )
ii. Detailed Estimate

Following points needs consideration while checking detailed estimates.

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

 Detailed estimate has been proposed in the prescribed format (Top sheet,
detailed sheet with Works, Stores and Freight portions).

 Check of rates, whether they have been taken properly, the basis of rates have
been given.

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

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

 Certification of quantities is based on realistic field requirement of the work as


per Plan and Drawings.

 Rates taken are based on last, lowest, latest accepted rate for the similar
works. This is also to be ensured that rates taken are not restricted for LAR
purpose by the TC on previous occasion.

 Sub-estimate of the other concerned department are also available in details


in the prescribed format (works, stores, CRRM)

 The competent authority has signed the estimate sheet and top sheet.

 Allocation wise clear break-up has been shown.

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

 Check of ‘scope of works’ with respect to Abstract estimate and Reference of


approval by the competent authority has been linked.

 Clear fund certificate towards availability of funds during the year is obtained.

 The estimate is arithmetically accurate.

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

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

 All the provisions in the estimate are as per Rly. Board’s circulars issued from
time to time.

In addition, the divisional finance should make its own rate master that
should be jointly vetted by accounts and executive.
( R E F : P A R A 703-E)
iii. Track Estimates

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

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

 Wear and tear of rails, sleeper in terms of IRPWM.

 Quantity assessment of Ballast in terms of IRPWM (route, cushion and


movement of Rolling Stock).

 Whether secondary or primary renewal?

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

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

 Check of estimate against inclusion of M&P items, fancy items, small


machines etc. Similarly the revenue work should not be charged to track
provisions.

 D&G and other miscellaneous provisions are reasonably worked out.

 Realistic assessment of TRD and S&T sub estimates.

 Rates for same type of estimates to be seen.

 Compliance of FA&CAO’s observations on these matters from time to time


should be ensured.

 It should be seen that track work of the KMs sanctioned are not operated in
different KMs and there is no duplicity in execution in the same place.
( Ref : SOP 1.01)
2. M&P AND RSP PROPOSALS

 Scrutiny of justification.

 Whether as a result of mechanization any reduction in Manpower is possible


or not?

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

 Allocation of the expenditure has been clearly shown.

 Whether the M&Ps proposed on replacement a/c, if so complete details of


Condemnation of previous one enclosed.

 Check of replacement vs. reconditioning analysis (Para 240 F I)

 The rates have been taken as per prevailing market rates.

 Whether the Procurement or Replacement is likely to effect expenditure on


items i.e., Manpower and maintenance.

 Introduction a machine for the first time should be scrutinized thoroughly.


The source should be sound having proved utility.
3. QUOTATION PROPOSALS

Quotations are exceptions to the tendering rule therefore need to be resorted


sparingly. Following points need consideration while examining quotations:

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

 Reasons for dispensing with calling of tender.

 Justification for calling of Quotation.

 Whether the quotation has been invited as per Rly. Board’s circulars.

 Reference to the enquiry letter.

 Approval of the competent authority for inviting quotations.

 Number of offers received (minimum three offers) .

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

 Whether the proposal is for fancy and furnishing items.

 Reference to the comparative sheet.

 Net cost of the work.

 Certificate of suitableness, reasonableness, technical suitability and rate


reasonability is submitted for the valid lowest offer.

 Repair is not for condemned items.

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

 Availability of funds.

 Adherence to annual ceiling limit of sanctioning authority in the financial


year. Ref: SOP1.16 and Remarks contained therein.

( Ref: Item No. 2.7.4.1 of B.S.Sudhir Chandra Committee along with Para 1211 E )
4. REPAIR PROPOSALS

Following details are required for consideration of repair proposal:

 Date/cost of procurement, installation/commissioning.

 That the repair proposal is not for items which has been condemned.

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

 The life of asset and work done by the asset.

 Whether the machine is covered under warranty; period of warranty.

 Instances of earlier repairs, amount spent on its repair/maintenance till date,


last similar repair, agency and mode of tender. Comparison between cost of
machine and repair cost.

 Date of breakdown of the machines and how the work is managed after the
breakdown.

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

 Justification for the work and mode of tendering system i.e. open, limited or
single; is given. Possibility to get most competitive rates/conditions must be
explored.

 Administrative approval of the competent Authority exists.

 Cost benefit analysis indicating repairs cost and enhanced life of the machine.
It should be worth spending on repairs so that life & performance of the asset
increases considerably.

 Division accountant vetting in case of divisional proposals.

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

 Warranty for satisfactory working after its repair.

 Competency of sanction and arithmetic accuracy.

 Availability of fund.

- (Ref: SOP 6.32 for general repairs)

5. HIRING OF VEHICLE PROPOSALS

• Administrative approval of DRM/ADRM/competent authority is available.

• Financial justification for hiring of vehicles exists.

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

• Condemnation certificate is available if the hiring of vehicle is proposed on


that ground.

• How the work is presently being managed.

• How the work is presently being managed.

• How the cost of hiring has been worked out. Whether the budgetary
quotation/LAR has been obtained.

( Ref : SOP 6.12, SOP 6.13)

(a) Bd’s Letter NO. E(G)2007/A14/6 dated 08-08-07.

(b) Bd’s Letter NO. CE-II/Genl/I dated 27-05-2002.

6. AMC PROPOSALS
• When were the machine /equipment procured and original cost of
machine/equipment?

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• Whether the machine is under warranty period, if so the details thereof.


• Administrative approval is obtained from competent authority.
• Whether AMC is comprehensive or Non- comprehensive.
• Why it can not be maintained departmentally.
( Ref: SOP 6.01)
7 . C A SH IMPREST PROPOSALS

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

 Proper justification is given. Imprest is an amount where pre-check is not


carried out. Therefore, the provision should be barest minimum.

 Whether the proposed imprest is bare minimum to meet emergent


requirements of the office. The monthly/seasonal fluctuation in need of
imprest is observed.

 Whether the provisions of Para 1050 to 1055 Finance code volume I are
complied with.

 Actual amount of payment made during the past six months, if enhancement
of cash imprest proposed.

 Proposals on the plea of delays in recoupment should not be entertained; action


should be taken to expedite recoupments.

 Competency of sanction for the imprest.

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

 Cash imprest for safety/disaster management should be dealt as per Railway


Board’s guidelines.- (Ref: Para 1050-1055 F1, SOP 6.42)
8. MISC. PROPOSALS

Proposal other than Supplementary Work Order’s, Estimates, M&P Proposals,


Indents, M.S., Finance Establishments, Quotations and brief Notes.

 The proposal of Misc. nature other than quoted above received in Accounts
office are examined as per circulars issued by Rly. Board, HQ and with
specific reference to schedule of Powers.

 Scrutiny of financial justification is carried out with reference to provisions in


Finance code connected rules, orders and instructions.

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 Rates reasonability, quantity justification and funds availability should be


seen simultaneously.
9. BRIEF NOTES SCRUTINY

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

 Tender Number.

 Name of work.

 Reference to sanctioned Estimate with copy on record.

 Copy of the NIT along with newspapers cutting in which advertisement


appeared showing date of publication etc.

 Original copy of M.R to purchase Tender documents.

 Number of tender forms sold /received.

 Validity date of offers.

 Tender time table.

 Number of NS items included and whether the rate analysis is vetted duly
approved by SR.DEN/CO.

 Approval of NS item by competent authority.

 Requisite amount of Earnest Money.

 Whether E.M. is in valid and acceptable form

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

 Description of eligibility criteria & reference of the case file.

 Description of Bank solvency & reference thereof.

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

 Administrative remarks on special conditions submitted by the Party &


evaluation of special conditions.

 Last accepted rate of the similar work in the same or contiguous area.

 Last , lowest, latest LAR is given.

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

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 Comparative position with the last lowest, latest accepted rate and the average
accepted rate.

 Any error in the tender document and Comparative statement.

 Percentage variation between sanctioned Estimate and lowest offer received


and reason thereof.

 Basis of rates for items in Tender Schedule.

 Deviation statement between sanctioned estimate and the tender schedule in


terms of No. of items, quantity and rates.

 Special Conditions with financial implications in the Tender Documents to be


checked and indicated for TC.

 Reasons for variation between NIT Cost and the lowest offer received.

 Any other reasons.

 Briefing note should be prepared in duplicate, checked and signed in the


Executive office. In the accounts office, the facts & figures are checked and
verified as also signed by the competent authority. One copy of the Briefing
note duly verified & signed should be returned to the concerned department
and the accounts office retains second copy.

 Legal vetting of Joint Venture documents or any deed etc. having legal
implication.

(Ref: Para 1254 E, 613 F1)


10. Vetting of Contract Agreements: -
After the acceptance of the tender, the contract agreement is received for vetting. The
following checks are required: -
 Only the Accounts copy of the contract agreement is to be vetted.
 The budget allocation on the cover page is as per the sanctioned detailed
estimate.
 If it is a sanctioned work of the Law book/ Pink book, the concerned Law
book/ Pink book item no. is mentioned on the cover page.
 The rates in the agreement are as accepted by the tender committee and
specific recommendations are incorporated in the agreement.
 The Works Accountant has verified the agreement and put the sign on it.
 The competent authority along with the contractor has signed the contract
agreement.

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If all above requirements are met, the cover page of the agreement is to be
vetted. - (Ref: PARA 1259 E)

11. PROPOSALS FOR VARIATION IN CONTRACT VALUE


Any variation in excess of 25% of the total value and individual item and overall
value in a contract, will require finance concurrence. The variation proposal is
treated in the same way as a fresh proposal and all the checks to be exercised on
a fresh proposal are to be conducted on a variation proposal also. In addition to
this, the following checks are also exercised.
i) The variation case should be furnished in the requisite format. i.e., duly showing
the original scheduled quantity, rate, amount, the revised quantity, amount and
the savings/ excess, both in aabsolute and percentages.
ii) The variation statement should bear the signature of concerned Executive as
well as the Contractor
iii) The Contractor furnishes “No Claim Certificate” regarding savings and non-
operation of items.
iv) The original case file along with sanctioned estimate, the Tender Proceedings and
Agreement copy are submitted along with the proposal for variation.
v) All the items where the variation is above 4-5 % should be explained in detail.
vi) All excess items above 25% over the scheduled quantity should be worked out on
the basis of current rate/ LAR.
vii) If specific rates are mentioned in the TCP, for excess quantity, it should be
ensured that only these rates are adopted for excess quantity.
viii) Any specific comments by the tender committee should also be born in mind
while processing the variation proposal.
ix) Approval of competent authority exists for the same.
If all the above requirements are met, an office note / Concurrence / vetting letter
is prepared and put up for approval and signature.
- (Ref: PARA 1268E)
12. VETTING OF INDENTS/ REQUISITIONS.
The following checks are required for vetting the indents.
i) It should be ascertained whether requisition has also been processed for the
same item in the recent past.
ii) If it is a new proposal, the same is given a In ward no. by feeding all the required
information on the computer.
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iii) The requisition should be accompanied with a top sheet and all the requisite
details should be duly filled in.
iv) If the requisition is for items, which is being regularly procured every year, the
consumption of last three years should be furnished in the top sheet.
v) If the requisition is being processed for a new item for the first time, detailed
justification, as to the background for procuring the item is required, alternately
the requisition should be accompanied with the copy of competent authority’s
sanction with the finance concurrence in terms of various schedule of powers
delegated by GM.
vi) If any item is being procured in large quantity for the first time, the procurement
should be supported by the policy decision /sanction/already certified by an
agency appointed by Railway Board and tested on trial basis.
vii) If a pink requisition is being processed, the requisition should be accompanied
with the original sanctioned detailed estimate, wherein there is a provision for the
same.
viii) If any of the above details is not fulfilled, the indent will be returned with specific
remarks duly taking the approval of SR.DFM on a office note/ returning letter.
If all the above requirements are met, the requisition is vetted by putting the
effacement on the original requisition along with a covering letter.
Simultaneously an enfacement is also to be made on the original estimate as a
token of the item being vetted. The same details is also entered in the vetting
register and put up for SO and SR.DFM’s signature.
( REF: SOP 6.23, SOP 2 )
13. LAND LICENSING
While checking the proposals for land licensing the following points should be
considered:
• Licensing of Railway land is permitted only for purposes directly connected
with the Railway working and with the personal approval of the GM and
personal concurrence of FA&CAO.
• The proposal should bring out clearly the details of the land to be
leased/licensed. The diagram/plan, period of lease to be indicated.
• Particulars of the party to whom the land is to be leased.
• A certificate that the land proposed to be licensed/leased is vacant and not
required for use of Railways in the future.

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• Certified Documents relating to latest market value of land from Revenue


authorities.
• The recovery of leased rent/license fee should be worked out based on the
above documents. The license fee will be fixed as a percentage of the market
value of the land being licensed.
• Railway Boards policy letter, governing the mode of license fee/lease payable
by the party, should be linked.
- (Ref: Chapter 10 of ENGG CODE.)
- Rly Bd’s Letter No. 2005/LML/18/8 Dtd. 10/01/05
- Rly Bd’s Letter No. 2005/LML/18/8 Dtd. 08/06/05
- Rly Bd’s Letter No. 2001/LML/24/20 Dtd .16/08/05
14. Opening of Tenders
Tenders should be opened, at the specified time, date and place by the officer nominated for
the purpose. All advertised (Open) stores tenders must be opened in the presence of a
representative of the Accounts Department. Whether 'limited' stores tenders should be
opened in the presence of a representative of the Accounts Department and if so beyond
what minimum tender value, may be decided by the Railway Administration in consultation
with the Financial Adviser and Chief Accounts Officer.
The key points to be observed while opening tenders are mentioned below for guidance:-
(i) Tender should be opened by nominated executive at the prescribed time, date
and place in the presence of accounts representative.
(ii) Initial (with date) the cover containing the tender .All the tenders should be
counted and marked 1/n.2/n….. N/n (n=total numbers of tender forms
received against NIT). Immediately after opening the tender, each page of
tender form should be machine numbered and date stamped.
(iii) Initial (with date) front cover page of the tender and every page of the tender
on which the rates or special tender conditions are quoted. All the tender
documents should be machined numbered, credentials submitted should be
numbered and mentioned in the tender register.
(iv) The names of the tenderers and the rates quoted by each tenderer should be
read out, wherever practicable, to the tenderes or the representative who may
be present at the time of opening of the tenders.
(v) Initial (with date) all corrections in the schedule of quantities, schedule of
materials to be issued and specification and other essential parts of the
contract document.
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(vi) The rate quoted in figures and words should be circled in such a manner as to
not leave any space after starting or ending digit.
(vii) Mark and initial all over writings in red ink. The corrections, overwriting and
omissions should be serially numbered and the total number of such
corrections etc. should be clearly mentioned at the end of each page of the
schedule attached to the tender and attested with date.
(viii) Clearly indicate on each page of the schedule attached to the tender, any
ambiguities in rates quoted by the tenderer in words of figures.
(ix) Specifically record whether samples submitted or not along with the tender.
(x) All the informations of each tenderer, viz. rate, special conditions, credentials,
validity of offer, EM details etc. should be recorded in the tender NIT wise.
(xi) While opening the tenders, no opportunity should be given to any tenderer to
repudiate, amend or explain the rate and or any condition quoted in the
tender.
(xii) Delayed tenders i.e. “tenders” received before the time of opening but after the
due date and time of receipt of tenders should also be opened and dealt with
in the same manner as tenders received before due date and time.
(xiii) ‘Late’ tenders, i.e., tenders received after the specified time of opening should
be opened by the concerned Branch Officer in the same manner as tenders
received before due date and time and marked as such in red ink prominently
on the envelop as well as on the tender papers.
(Ref: Para 607- 610 FI)
(xiv) A suitable remark in regard to both the ‘delayed’ and ‘late’ tenders should be
made both in the Tender Register as well as the Comparative statement.
(xv) If the rates are not quoted in words, it should be recorded on the same page.
(xvi) Regarding Earnest Money, it should be seen whether requisite EM is
submitted in the prescribed form or not. Otherwise suitable remarks may be
offered in the tender document.
(xvii) On front page of tender form an endorsement that “Tender forms contains
pages from 001 to ….” Should be made and initialed by executive and
accounts representative.
(xviii) Tenderer’s authorized representative’s initials should invariably, be obtained
in tender register.
Authority: FA&CAO/JBP Letter no.HQ/AC/FX/Inst dated 21-01-2009

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15. VETTING OF DETAILED ESTIMATE


I. On sanction of work (PB or GB or LAW Book or GM-OOT or Divisional Sanction etc.)
the detailed estimate for work should be prepared keeping in view the scope of work
and cost as envisaged in the abstract estimate and submitted to the competent
authority for the administrative approval.
II. Subsequently, detailed estimate should be submitted to the associate finance for
vetting. At the time of associate finance vetting, copies of original proposal of that work
(PWP, LAW proposal etc.) should be annexed for better appreciation. After finance
vetting, technical sanction of competent authority should be obtained.
III. The detailed estimate of a work should comprise of:
(a) Narrative Report
Sanction reference of work (no. & year of PB/GB/BM-OOT/LAW. Divisional Sanction
etc.)
 Abstract sanctioned cost.
 Objective and brief justification of work.
 Location of work execution (Deviations, if any, w.r.t. sanctioned work should be brought
out along with reasons) and inspection report, if required.
 Scheme of execution of work and proposed period of completion.
 Head of the allocation and fund availability position in current financial year.
 Position of excess over estimates under the heads ‘escalation’ and ‘other than escalation’
w.r.t. abstract estimate and declaration about presence of any material modification.
 Detailed estimate no. and any other relevant information.
(b)Outer sheet:
• The outer sheet of detailed estimate containing abstract of the cost of work.
• Summary sheets of sub –estimates of various departments.
(c) Statements showing details of estimated cost:
 Sub- detailed estimates of all departments involved.
 Detailed estimate should segregate the provisions in terms of cash and stores.
 Executive should ensure that quantities are based upon realistic work requirement in
line with approved plans and drawings (which should be attached). Methodology and
basis for composition of quantities of major items should be mentioned in the case file.
 Detailed estimates should be prepared by considering the current rates. Rates
references should be detailed out and attached in the case file.

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 Over head charges like D&G, contingencies etc. should be included on need basis. If
these charges are included at maximum levels, this should be justified in terms of
actual requirements, References of extent RLY Bd’s guidelines should be mentioned.
 Labor charge should not normally be included in the detailed estimates because now
days most of the works are executed on contractual basis and rates are usually from
contractual works itself.
 Fancy items like TV, VCR, Camera, laptop and Projector etc. should not be provided in
the detailed estimates unless these are explicitly provided for in the abstract estimates.
 CRRM should be taken into account as per existing condition of asset, if applicable .It
should be taken at current rates only.
 Any element of foreign exchange involvement should be brought out.
 In respect of detailed estimates prepared base on Survey Reports, it should be ensured
that the provisions made in the detailed estimates are in conformity with the facilities
proposed in Survey Report; Survey Report should be attached in these cases.
In case of deposit works, the codal provisions as applicable on case-to-case
basis e.g. levy of departmental charges, prior acceptance is taken for bearing the
departmental charges, prior deposition of amount by the agency for whom the work is to be
executed, etc. should be examined.

(d) Variation Statement


During execution of the work there may be variation in original contract value due to
various reasons. Mainly the variation in a works contract may occur due to the reasons
detailed below:-
(i) Variation of the conditions of contract.
(ii) Variation of the rates of items.
(iii) Variation of the quantities of any items.
(iv) Variations of the items.
While scrutinization the variation proposal the following checks are to be exercised:-
• Relative reasons and their genuineness.
• Impact on inter-se- position is to be seen.
• No undue benefits to contractor or any loss to railway should be ensured.
• If price variation clause is applied in case of works costing more than Rs.50 lakh
and the same is being followed while working out the final varied cost due to
escalation.
• Consent of the contractor has been obtained for the said variation.
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• Necessary certificate has been given by executive.


• Reasons for variation in individual items are not contradictory. For example if
dismantled quantity has gone down , the quantity of removal of dismantled
muck does not go up.
• Variations are not being proposed for profit making items without adequate
justification even if it is not leading to a vitiation in the contract.
• Often variation in some items is restricted by the tender committee due to various
reasons it is to be ensured that such restrictions have been observed.
• As a consequence of proposed variation, the estimate is not being exceeded so as
to necessitate higher authority’s sanction and if so the sanction is obtained.
• Excess variation is not caused due to work being proposed at some other site.
• The reasons furnished do not give an impression that the work has already been
completed.
• As a consequence of proposed variation, the competency of sanction is not getting
changed and while concurring such variations, the appropriate authority under
whose sanction the revised value will lie has been pointed out.
• The limit for varying quantities for minor value NS items shall be 100% (as
against 25% prescribed for other items.) A minor value item for this purpose is
defined as an item whose original agreement value is less than 1% of the total
original agreement value.
• No such quantity variation limit shall apply for foundation items.
• For tenders accepted by General Manager, variations up to 125% of the original
agreement value (even if the revised agreement value is beyond GM’s competence
to accept tenders) may be accepted by General Manager.
• For tenders accepted by Board Members and Railway Ministers, variations up to
110% of the original agreement value may be accepted by GM.
• The aspect of vitiation of tender with respect to variation in quantities should be
checked and avoided. In case of vitiation of the tender, sanction of the competent
authority as per single tender should be obtained.
• An additional provision of Type- I quarter should not be a reason of variation as
the same are not to be constructed any more due to implementation of
recommendations of 6th Pay Commission.
CHAPTER - I
WORKS MATTERS

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EXTENT OF POWERS DELEGATED TO


HEAD QUARTER DIVISIONAL OFFICERS
OFFICERS
Item no. Nature of PHOD/CHOD/SAG Other DRM/ADRM OTHER
Ref. to Powers officers OFFICERS
Rule
Bd’s letter 1.25(b) Up to 25% provided SG/JA Grade/ Up to 25% SG/JA
No. Variation in the value of contract Sr. Scale provided the Grade/ Sr.
94/CE/- quantities is still within his Up to 25% value of Scale
I/CT/4 for the powers of provided the contract is Up to 25%
Dated contracts acceptance. value of still within his provided the
22.10.01 accepted contract is powers of value of
by GM and still within his acceptance. contract is
below. powers of still within
acceptance. his powers of
acceptance
NOTE:
1. For variation in quantities accounts concurrence will be required if variation is in
excess/ savings of 25 % of the total value and individual item in a contract.
2. Chief Engineer (PHOD/CHOD) will have power to approve these changes in contract
approved by the GM/AGM and Railway Board upto a maximum of 25 % of contract
value or Rs. 25 lakhs which ever is less for each individual contract.
3. Total implication of variation in quantities and variation of items in a contract will be
limited to 25 % of total value of original contract. In case it is exceeding personal
approval of GM or higher authority which approves the original estimate and in
whose competence the enhanced value lies will have to be obtained.
4. For controlling the payment in case agreemental value goes beyond (+) 25%, a
regulatory mechanism as part of the contract shall be built in as part of contract
itself. For the first 15 % increase in value beyond 25 % of agreemental value, the
rates will have a reduction of 2 % in the incremental value of the agreement and for
the next 10 % increase in the value, rates will have an additional reduction of 2% in
the further incremental value of the agreement. The variation clause to this effect
will be included in all works contract.
5. In terms of Codal para 628-F1 & 1265 –E the original accepting authority should
approve the variation provided the total value of the contract is still within his power
of acceptance. If the total value goes beyond the competence of the original
acceptance authority, the sanction of the higher accepting authority to be taken.
6. In case variation takes place due to variation in quantity, contract has to be treated
like a single tender.
-( Ref: SOP 1.25 b )

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FINANCE ESTABLISHMENT

ii.TEMPORARY AND PERMANENT POSTS

Following points are to be checked:

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

• Status of sanctioned cadre and Men on roll.

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

• Reference to the guidelines and instructions of the higher authorities.

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

• Position of divisional surplus bank.

• Yard sticks and benchmarks, if any.

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

• Nature of post, temporary, permanent.

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

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

i. Details of the previous payments.

ii. Demand / application of the Party concerned.

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

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

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

• Position of matching surrender if any.

• If proposal is for half-yearly review of running crew, reference to the actual hours of
the crew should be made available on file. Also the results of the review are seen.

• Check of Proposal for arithmetical accuracy.

• Competency of sanction of the post.


iii. WORKCHARGED POSTS (Gazetted and Non Gazetted)

The proposal should contain the following details:

 Whether creation or extension?


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

 Cost of the staff chargeable/ allocation/is it within D & G charges provided in


estimate.

 Justification in terms of worth of charge, balance of work, physical and financial


progress of work. In case individual works are taken to which the post will be
charged, outlay of the proposed work in that financial year.

 Fund availability duly certified by works accounts including details of estimate.

 Details of specific provision against estimates to which the post will be charged.

 Department, Designation and grade of the post, number of posts.

 Period for which the posts are required.

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

 The above should be administratively approved /certified by the authority competent


to do so.

The operation of posts should e minimum possible irrespective of availability of provisions .


The current level of work load should also be checked. Normally, operation of group ‘D’
should be avoided.
Procedure for Test-Check:
The Test check should, apart from verification and thorough examination of facts and
figures embodied in various documents brought under test check, be directed to an
intelligent scrutiny to find out whether the clerk(s) understand their duties and rules
governing them and do the work allotted to them diligently and whether there is any
tendency to do the work casually. Test check should particularly be conducted at least once
in a month by SO and all officers. The test checks should not be of routine nature rather
they should focus on system improvement, procedural lacuna and lapses. The underlying
idea should be efficient disposal without any violation of rules and procedures. The checks
should also reflect the updated skills of the officer.
- [PARA 803 A1]
Recording of results of Test- Check; _
The result of test check should be recorded systematically in a manuscript register in the
form given below:-

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SR NO. Item of Extent of Test Particulars of Name of the SO/SSO Result of Whether the
work test check prescribed vouchers elected (A) who had test Test check discrepancy in
checked for test check checked the item col.6 has been
pointed out by
the supervisory
staff

1 2 3 4 5 6 7

The test check register should be opened separately by each official, the test check is
required to be made in accordance with these orders. The entries made in the register should
contain adequate particulars so as to facilitate the identification of the entry/voucher
subjected to test check and entry/voucher should be endorsed “Test checked” under the
dated initial of the official conducting the test check.
The exact nature of the discrepancy noticed should be briefly indicated in the appropriate
column of the test check register. If the discrepancy calls for a lengthy note, the same
should be given as a separate note for further disposal being done on the connected file(s)
and a cross reference to this note should be recorded in the relevant column of the Test
Check Register.
The observations as a result of the test check should be clearly indicative of the appraisal
by the checking authority of the quality of performance of the clerks whose work came up
for test check.
Test- Check of registers:
Another important item of test check is the inspection of different registers by the Gazetted
Officers. The intervals at which different registers maintained in Accounts Offices should be
put up for inspection by Officers.
Periodicity of submission of Test- Check Register to Officers:
Every test checks register should be provided with an inspection sheet below the front page
indicating the month of test check, date on which put up and the date reviewed by the
Officer concerned. The test check registers of Section Officers and Senior Section Officers
should be put up to the Branch Officer on the 10th of each month indicating the test check
done on the work of clerk in the preceding month for review and orders, where necessary,
by the Branch Officers.

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Check list for variation statement


Items Yes/No/
NA
1. Whether the following information are recorded on the summery sheet of
variation?
A. Approved cost of the work.
B. Sanctioned estimated cost.
C Physical progress of the work
D. Extended completion period.
E. Original cost of the C.A.
F. Revised cost of the C.A.
G. Value & percentage of variation with CA value /Approved cost / Estimated
cost.
2. Whether the prior administrative approval is obtained from competent /tender
accepting
authority for proposed variation ?
3. Whether the item wise reason for the variation has been recorded against
each item of the Schedule?
4. Whether there is any variation in those items which are restricted by
TC/Accepting authority?
If yes, (1) Whether the administrative approval of next higher authority is
obtained?
(2) Whether detail reason is recorded for the same?
5. Whether it is certified that items where the variation is on minus side will not
be executed in near future & at higher rate ?
6. Whether the NCC obtained from the contractor in case of saving beyond 25
%?
7. Whether the provision of 2% deduction is made in case of variation for more then
25% to 40% and further 2 % for 40% to 50%?
8. In case, New NS item are included in variation, following are required to be
clarified.
1. Whether the provision is made in the sanctioned estimate?
2. Whether the LAR/Rate analysis is submitted with supported documents
and signed by DA?

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

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


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

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

_______________________________________________________________________________________

FX SEC: Chapter 6 REV:00 15.05.08 Page 21 of 24 Approved By__________


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

Check list for requisitions


01. Authority under which procurement is asked SOPGEN item……………….. (Sanction of
competent authority should be furnished, in case of other than SOGEN)
02. Whether the following informations have been furnished on the covering letter?
A. Detail justification including quantity justification.
B. Quantity procured previously (full particulars)
C. Quantity purchased locally
D. Major Group
E. Stock in hand
F. Stock In transit
G. AAC as per proposed stock master of WCR
H. Year wise consumption of last three years
I. Average life (In case of replacement )
03 Whether, the certification regarding SAFTY or NON SAFTY item is endorsed?
04. Whether, the certification regarding REPLACMENT /ADDITIONAL accounts endorsed?
05. Whether the copy of LPO/B.Q. is attached in support of rates obtained ?
06. Whether the copy of instruction(s), guideline(s) of the Rly Bd,s , HQ or RDSO is
attached ? If referred.
07. Whether the urgency certificate is submitted? If required.
08. Whether the PAC is submitted duly signed by competent authority? If required.
09. Whether the technical clearance is obtained from competent authority? If required
10.
1 Whether it is certified that item being procured is not under RESTICTED category?
2 In case of RESTICTED item, whether prior approval of competent authority is
obtained and submitted ?
11. Whether the correct allocation is recorded on indent?
12. Whether the funds availability is certified during the current Year?
13. Whether the indent is signed by competent authority? (SOPGEN ref )
14. Whether the bill paying/passing authority is indicated on indent?
It is certified that all above item have been personally checked by the undersigned.

(Signature of Preparing authority)

_______________________________________________________________________________________

FX SEC: Chapter 6 REV:00 15.05.08 Page 22 of 24 Approved By__________


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

CHECK LIST FOR TENDER SCHEDULE


Whether approval of competent authority has been obtained for inviting tenders
in terms of item no.1.17, 1.18 & 1.19 of SOPGEN – 2004.
Whether estimate is sanctioned & whether provision exists for carrying out
proposed work. (Reference to the estimate and specific item under which the
provision exists for carrying out the proposed work to be given).
Whether a comparative statement for items in Tender Schedule vis-à-vis item in
sanctioned estimate has been prepared and proper justification for the
variation\change in item, if any, have been recorded.
Whether clear site is available for work and whether approach to site is
available.
Whether GAD is approved and whether structural drawings are ready.
Whether “Special conditions” proposed to be incorporated in the tenders
especially conditions involving financial implications have been critically
examined.
Whether the proposed completion period of the work has been assessed on a
realistic basis.
Whether all requisite items have been included in tender schedule as per
drawings and site conditions.
Whether items included in tender schedule are as per latest instructions and
specifications.
Whether quantities of items are realistic.
Whether rates adopted are realistic estimated rates. (Basis of rates adopted such
as reference to Contract agreements and calculations should be kept in record
and put up to tender schedule accepting authority).
Whether rate analysis for NS items are realistic and as per prevailing market
rates.
Whether tender documents contain proper Technical specifications.
Whether tender schedule has been technically examined in drawing office.
Whether Tender schedule has been checked by SO(A/cs).
(Signature of preparing Authority)

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

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

Check list for quotation work

Items Yes/No/NA
1. Whether it is certified that work is urgent in nature?
2. Whether the justification including quantity is endorsed on the proposal?
3. Whether the reason for not calling tender is endorsed?
4. Whether the administrative approval is obtained from the competent authority?
5. Whether the expenditure of work is within the power & ceiling limit of the
Sanctioning authority as per SOPGEN item No…………?
6. Whether the quotations are invited for those items only, which can not be
executed through any existing contract including Zonal contract ?
7. Whether the quotation have been called from at least three contractors working in
that area ? (Precautions must be taken to see that firms are genuine, not factitious.)
8. Whether the reasonability of rates is certified in compression to last accepted
rates? (LAR, if available, should be furnished other wise, rate analysis should be
given. If necessary, budgetary quotation from dealers/firms should be obtained.)
9. Whether it is confirmed that no fancy items are being provided in this work?
10.Whether it is certified that the work has not been split up for the purpose of
bringing it within the ambit of dispensation ?
11. Whether the correct allocation of expenditure is endorsed?
12. Whether the availability of funds has been certified by the OS/SSO budget?
13. Whether the following documents are attached?
1. Copy of approval
2. Comparative statement along with quotations.
3. History sheet of the item (In case of repairing works )
4. Copy of LAR in reference.
5. Other relating, if required.
It is certified that all above item have been personally checked by the undersigned

(Signature of preparing authority)

_______________________________________________________________________________________

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Sr.DFM Office,West Central Railway Bhopal Process Manual

ACTIVITY/ RESPONSIBILITY MAPPING CHART FINANCE & FE SECTION

S. No. SCOPE OF WORK Dept. Supervisor AA


Code Code
SCRUTINY OF PROPOSALS /INDENTS(STOCK AND NON STOCK ITMES):-
On receipt of the proposal/ indent whether such proposal, indent DEN( C ),
have been received/ dealt with earlier (for duplication purpose) to be SR.DEN(N),SR.DEN(CO).S A1 B1
checked R.DCM
If not, it is to be treated as a fresh proposal by allotting a CFN or DEN(S),SR.DEE(TRS),ET,
A2 B2
Inward No.for the same. SR.DME/BPL,XEN(BR)
Putting of notes / letters of concurrence/ vetting and returning of RRB,SR.DPO,RAJ
1 proposals to the officer concerned. BHASHA,MEDICAL A2 B3

Receipt and dispatch of all proposals/ indents/ tender schedule after SR.DEE(TRO),SR.DOM
entering all particulars in the PC SR.DSO,SR.DEE(G), A1 B4
SR.DME(D)ET
XEN(MD),DY.CE(T/M),
SR.DSTE,DMM,DSC/RPF A2 B5
. SR.DEE(TRD)

VETIING OF CONTRACT AGREEMENT :-


On receipt of the Contract Agreemet from various department the XEN(MD),DY.CE(T/M),
2 vetting of the agreement is done . SR.DSTE,DMM,DSC/RPF
. SR.DEE(TRD). A2 B3
SR.DEE(TRO),SR.DOM
SR.DSO,SR.DEE(G),
SR.DME(D)ET
CHECKING OF BRIEF NOTE AND COMPERATIVE STATEMENT :-
3
Checking of brief notes and comparative statement received from As specified above
executives and sending back to concerned office. A1,A2

4 DEALING WITH FINANCE ESTABLISHMENT CASES:- ALL DEPTT. A1

FX Section: CHAPTER 7 Page 1 of 1 Rev 00 01.01.09 Approved By__________


Sr.DFM's Office,West Central Railway,Bhopal Process Manual

FINANCE & F.E. SECTION ( CODE ALLOCATION SHEET )

S.No. Name Designation Alloted Code


1 D.N.BAHETI S.S.O A1

2 JITENDRA SAXENA S.S.O A2

3 AJAY VARSHNEY A.A. B1

4 K.S.RAGHUWANSHI A.A. B2

5 C.L.KURIL A.A. B3

6 C.B.PAWAR A.A. B4
7 HARI OM RAJORIA A.A. B5

Approved By
(Name & Seal)

FX SECTION CHAPTER 8 REV: 00 15.05.08 PAGE 1 OF 1 APPROVED BY__________


Sr.DFM's Office,West Central Railway,Bhopal Process Manual

FX SECTION CHAPTER 8 REV: 00 15.05.08 PAGE 1 OF 1 APPROVED BY__________


Sr.DFM's Office , West Central Railway,Bhopal Process Manual

ORGANISATIONAL CHART

SR.DFM

DFM

SSO (FX) SSO (FX)


A1 A2

A.A. AA AA AA
(B1) (B2) (B3) (B4)

FX SECTION CHAPTER 9: REV:00 01.01.09 PAGE 1 OF 1 APPROVED BY__________


Document No: BOOKS
January 01, 2009

BOOKS SECTION

PROCESS MANUAL

Office of Sr. DIVISIONAL FINANCE MANAGER


WEST CENTRAL RAILWAY, BHOPAL

Telefax: : 0755-2457138
Railway Phone : 5052
E-mail : sobooks@rediffmail.com

Compiled By CO-Ordinated by Reviewed by Reviewed by Approved by

(Anil Shrivastva) (D.N.DWIVEDI) (RAJIV SHRIVASTVA) (R.M.DESHMUKH) (HIRA BALLABH)


SSO/BOOKS SSO/ISO ADFM ADFM SR.DFM
CONTENTS

Rev. No/Date No. Of


Section/ Ref Title
00 01 02 Pages

1 Abbreviations 01

2 Introduction 01

3 Source of references 01

4 Scope of work 01

5 Sectional Procedure 20

6 AFRES user Documents 15

7 Activity Chart 02

8 Staff Allocation Sheet 01

9 Flow chart 04

10 Monthly Report 01

11 Measurable Parameter 01

12 List of Records 01

13 Calendar Of Returns 01

14 Section Process Flow chart 01

15 Organization Chart 01

16 Changes to manual 01
Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

ABBREVIATIONS (BOOKS SECTION)


S.
No. Term Expansion
1. AA Account Assistant
2. ADFM Astt. Divisional Finance Manager
3. AFRES Advance Finance Railway Earning & Expenditure System
4. AG Suspense Accountant General’s Suspense
5. BG Bank Guarantee
6. CO6 Cash Order 6
7. D.C. Divisional Cashier
8. DEP.’E’ Deposit Establishment
9. DFM Divisional Finance Manager
10. ECS Electronic Clearing System
11. EDP Electronic Data Processing
12. EFT Electronic Fund Transfer
13. EMD Earnest Money Deposit.
14. FA & CAO Financial Adviser & Chief Accounts Officer
15. FDR Fixed Deposit Receipts
16. M.R. Money Receipt
17. MCO Movement Control Officer
18. MICR Magnetic Identifier and Card Reader
19. PAO Pay & Accounts Officer
20. PMR. Pay Master Register
21. R.M.S Railway Mail Service
22. Sr.D.E.E (G) Sr. Divisional Electrical Engineer (General)
23. SR.DFM Senior Divisional Finance Manager
24. SSO Senior Section Officer
25. TD Transfer Divisional

____________________________________________________________________________

BOOKS Section: chapter 1 Page 1 of 1 Rev:00 01.01.09 Approved By ___________


SR.DFM'S OFFICE W.C.RAILWAY BHOPAL Process Manual

MONTHLY REPORT
Month:

Monthly Processed Status


Target Period of
S. No. Activity Processed Remarks, if any
Clearing Total Processe
not in
Recd d In Time
time
Monthly Exchequer
1 Report

Report of Surprise
Check of Pay Office
2

Approximate Account
Current
3

Actual Account
4 Current

Debt Head Report


5

SR.SO(BOOKS) ADFM
(Name & Seal) (Name & Seal)

BOOKS SECTION CHAPTER 10 PAGE 1 OF 1 01.01.09 APPROVED BY___________


Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

MEASURABLE PARAMETER:

Measurable Parameter No of Days Allowed for


SR.NO. disposal
1 Pay orders related to unpaid wages Three working days after
receipt of the pay order.
2 Pay orders related to EMD Three working days after
receipt of the pay order.
3 Schedule of ‘M’ Remittance Three working days after
receipt of Transaction
Transaction
4 TD meeting As per schedule given by
F.A.&C.A.O.

5 Preparing of Cheques Within same day or as per


Exchequer position.
6 Refund of EMD/SD received in shape Three working days after
receipt of letter from
of FDR/TDR/NSC etc. executive for releasing
the same.

IMPORTANT NOTE: It is to be ensured by the concerned section in


charge that the updating of system is take place within barest minimum
time and any revision, on account of new rule/instruction from Rly Bd/
HQ’s warrants revision of process manual, is taken place within one
week of receipt of letter. However, to ensue the task “On EVERY 1ST DAY
OF THE MONTH THE SECTIN INCHARGE WILL REVIEW THE SYSTEM AND
ENSURE THAT ALL UPDATION /REVISION DURING THE MONTH ARE
TAKEN PLACE.”

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BOOKS Section: chapter 11 Page 1 of 1 Rev:00 01.01.09 Approved By ___________


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

LIST OF RECORDS
Section: ____________________
BOOKS SECTION
S. Record NO.
Record Name Format No., if any Records Custodian
No.
AC/BPL/BOOKS/DHR/01 Form A – 749
1 Debt Head report S.S.O,A.A.
AC/BPL/BOOKS /UNPAID/02 Form A – 1959
2 Unpaid wages list S.S.O,A.A
AC/BPL/BOOKS /REMT/03 Form A – 422
3 Schedule of Remittance S.S.O,A.A
transactions
AC/BPL/BOOKS /MR/04 Form A 1605
4 Miscellaneous receipt transmit S.S.O,A.A
note
AC/BPL/BOOKS /REV/05 Form A – 310
5 Revenue Ledger A.A.

AC/BPL/BOOKS/CO7/06 Form A – 1107


6 Abstract of bills (CO 7) A.A.

AC/BPL/BOOKS /JOURNAL/07 Form A - 308


7 Journal slip A.A.
AC/BPL/BOOKS/TC/08 Form A - 406
8 Transfer certificate A.A.
AC/BPL/BOOKS /PO/09
9 Pay Order S.S.O A.A.
AC/BPL/BOOKS /PAID CHQ/10
10 Paid Cheques A.A.
AC/BPL/EXCH/11
11 Ex-chequer Register S.S.O
AC/BPL/CHQUE/12
12 Cheque stock Register A.A.
AC/BPL/BOOKS/CANCLD/13
13 Cancelled cheque Register A.A.
AC/BPL/BOOKS /INLIEU/14
14 In-lieu cheque Register A.A.
AC/BPL/BOOKS/AFRES/CO7/15
15 AFRES CO7 Register A.A.
AC/BPL/BOOKS/CHQ ISSUE/16
16 Cheque issuing Register A.A.
AC/BPL/BOOKS/STOPPAMNT/17
17 Advice for stop payment of A.A.
cheque.

NOTE: Before destruction of above records (in case of retention period is over), SR.DFM ‘S prior approval will be required. Further, a
circular may be issued to all concern asking them to withdraw any record from destruction if required by them for any purpose.
BOOKS SECTION CHAPTER 12 11.11.09 PAGE 1 OF 1 REV: 01 Page NO.
SR.DFM’s Office, West Central Railway, Bhopal Process Manual

Retention Period

2 years

3 years
2 years

3 1/2 years

10 years

10 years

5 years
2 years
3 years
10 years
5 years
10 years
5 years
5 years
5 years

5 years
5 years

BOOKS SECTION CHAPTER 12 11.11.09 PAGE 1 OF 1 REV: 01 Page NO.


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

CALENDAR OF RETURNS

SR NO. Name of Returns Period Due date of To be submitted


submission
1 Monthly Exchequer Monthly 7th of Following FA&CAO
Report month
2 Report of Surprise Check Monthly 7th of Following FA&CAO & Chief
of Pay Office month Cashier JBP
3 Approximate Account Monthly 4th of following DY. FA&CAO
Current month (Books)
4 Actual Account Current Monthly 26th of following DY. FA&CAO
month (Books)
5 Debt Head Report Annual As targeted by; DY. FA&CAO
HQ (Books)

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BOOKS. Section Chapter 13 Rev 00 Page 1 of 1 01.01.09 Approved By______________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Books Section Process Flow Chart


Cash book
Cheques TD

CO7, Summary recd ATD/ATC recd


from cash office from other units Printing of Cash
Book by EDP
Center
Scrutiny & tallying Entering and
the amounts. numbering in Register
Checking of listing
with Ex-chequer
Segregation of CO7 for
MICR & non-MICR Distribution to
cheques concern Section
Rectification
of errors

Preparation of
cheques Recd. JV from
Section.
Resubmission of
listing to EDP

Checking of cheques Finalisation of


by S.O and signing by transaction
Officer.
Finalisation of
End cash book

Sent to PAY
DATA prepared in CD/Pen Drive and
Office along with
forwarded to Central Bank Of India for End
CO7 and Voucher crediting the amount in the account of
( In case of items respective employee/contractor/ supplier (in
other than case of payment made through ECS /EFT.)
ECS/EFT) ( In case of items other than ECS/EFT)

Paid Bills sent back by Pay office ( after


delivery of cheques to concern party )to
Records section .Record section activity
defined in Admn section procedure
manual.

End
Books SECTION:chapter 14 REV:00 PAGE 1 OF 1 01.01.09 Approved By ____________
Sr.DFM's Office,West Central Railawy,Bhopal Process Manual

ORGANIZATIONAL CHART

ADFM

SSO (BOOKS)
A1

AA AA AA AA AA
(B1) (B2) (B3) (B4) (B5)

BOOK Section Chapter :15 Rev:00 page 1 of 1 01.01.09 Approved By________


SR.DFM'S OFFICE , West Central Railway Bhopal PROCESS MANUAL

ACCOUNT CURRENT PROCESS FLOW CHART

Cash Book

Cash Book
+
DP JV

Cash Book
+
DP JV
+
REV.JV
+
CAP.JV

Monthly
Journal/Monthly
Account Current

BOOKS SECTION CHAPTER 16 PAGE 5 OF 5 01.01.09 APPROVED BY_________


Sr. DFM OFFICE, West Central Railway, Bhopal Process Manual
CHANGES TO PROCESS MANUAL

Amendment New
Date Section Particulars of Amendment
No. Rev No.

________________________________________________________________________

BOOKS SECTION CHAPTER 17 PAGE 1 OF 1 01.01.09 APPROVED BY________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

INTRODUCTION
The basic framework of Divisional Accounting, is based on general
accounting principals and it incorporates both cash and accrual based accounting to
ensure that true and fair picture of accounts is reflected. There are adequate number
of checks and balances between executive accounts departments and between various
sections of Accounts office. The elaborative system of allocations and reconciliation
ensures that each and every transaction is correctly accounted for and deviations are
reflected.

The books section of the Divisional Unit is entrusted with the task of
accounting all the disbursements and sundry receipts of the unit and to transfer to
other accounting units, the items pertaining to them that had originated in the unit.
The bills passed for payment along with relevant vouchers, CO-7s and allocations
sheets are received from various sections of the unit. Based on the cheques abstracts
of bills passed along with the bills and vouchers are prepared and sent to cash office
for arranging payment.
The CO-7 along with the allocation sheet forms the Cash Input Data,
which is punched in the EDP center to generate cashbook at the end of the month and
also a summarized form allocation wise at the end of the month.
Payment contains the cash expenditure on all the allocations including
Suspense head, Revenue and Capital Demands and details of transactions under
Demands Payable. The bookings under various heads are available date wise. It also
gives the summery of total cheques issued everyday during the month.
Non-cash transactions are recorded on the basis of journal slip. The
treasury wise statement of cheques prepared every day is posted in cheques and bills
register giving details of cheques and amount. The debit scrolls along with the
paid cheques received from HQrs are also posted in cheques & Bills register.

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BOOKS Section: chapter 2 Page 1 of 1 Rev:00 01.01.09 Approved By ___________


Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

Sources and References:


All the Codes and Manuals issued by Railway Board have Presidential
sanction therefore; any violation of these provisions would be treated as an
irregularity. The circulars issued by Railway Board are extension of codal provisions
therefore, they bear the same sanctity. In addition to the above documents, there are
Manuals, which have been issued on particular subject by Zonal Headquarters with
the approval of FA&CAO. Therefore, some of the specific instructions contained in
these manuals may vary from Zone to Zone.
The difference between Codes and Manuals is that the codes give rulings and
authority i.e. what to do and what no to do, whereas the Manuals provide the
procedure of doing things.
The working of Budget section is guided by the following documents:
• Indian Railway Accounts Code, part I, II,
• Indian Railway Finance Code, part I & part II,
• Railway Board’s circulars,
• Instruction/guide lines issued from time to time by Railway
Board,
• Instruction issued by HQ.
In this Process of framing document on budget, efforts have been made to
incorporate vital aspects of Codes and Manuals and at the same time standards and
targets have also been incorporated for effective disposal of files.
Instead of reproducing details from codes and manuals attempt
has been made to refer the relevant Para. For example Para 701 FI means paragraph
1 of Chapter VII of the Indian Railway Finance Volume-I. This is the first ISO
obtained for any accounting unit of Railway which incorporates the post
computerization state of affairs.

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BOOKS Section: chapter 3 Page 1 of 1 Rev:00 01.01.09 Approved By ___________


Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

SCOPE OF WORK IN BOOK SECTION


1. Preparation /printing and issuance of cheques after receipt of
vouchers/CO7s received from various sections duly signed.
2. Issuance of in lieu cheques.
3. Remittance Transactions:
a. Reserve Bank Suspense
b. Remittance into Bank
c. Cheques and Bills Reconciliation
d. PAO Suspense
e. AG Suspense
f. Remittance Account with Defense & Postal
g. Reserve Bank Deposit
h. Reconciliation of transfer transactions.
i. Reconciliation of Paymaster’s Cash Book.
j. Preparation of Debt-Head Report.
k. Preparation of cash outgo monthly statement.
l. Preparation of Approximate and actual Account Current (monthly)
m. Deposit unpaid wages – passing of Pay-orders and maintenance of
Register.
n. Recoupment of Cash Imprest (C4s) of cashiers.
o. EMD - Passing of pay orders and maintenance of register.
p. Report of Surprise Checks of cash with cashiers.
q. Accountal of misc.cash receipts.
r. Imprest – Passing of First/Enhanced Imprest and maintenance of
Register.
s. Maintenance of Capital and Revenue Ledger.

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BOOKS Section: chapter 4 Page 1 of 1 Rev:00 01.01.09 Approved By ___________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual
SECTIONAL PROCEDURE

1) Procedure followed before preparation of cheques / In lieu cheques.


The passed CO-7 printouts along with relevant vouchers are received
from various Sections for arranging of payment. On receipt, they are entered
into a register meant for the purpose. The CO-7s are scrutinized and based on
the section code a summery is generated. Subsequent to the summery
generation, cheques are printed. The Cheques duly stamped and signed by a
competent authority, are then sent to pay office. Before dispatching to the pay
office, the cheques particulars are recorded in a register maintained for the
purpose. The pay & cash office provides the acknowledgement of the cheques
mentioned in the register to the books section. A soft copy is sent to the
concerned bank for facilitation of payment where ECS & EFT is chosen as
mode of payment. The sponsored bank credits the paid amount in the bank
accounts of employees in their respective Banks.
2) Preparation of In-lieu Cheques:
In lieu cheques are prepared and re-issued to the parties where cheques are
either lost or received back in the books section for effecting corrections of any
nature like error in account holders name, wrong treasury or invalid cheques.
However, where a cheques is lost or burnt or can’t be produced physically to
the section, an indemnity bond is required to be executed by the party. After
getting the confirmation from the concerned bank about the cheque being yet
realized, the in lieu cheque is issued. In all other cases, where the issued
cheques are available and can be presented to the books section, the in lieu
cheques are issued with no requirement of execution of indemnity bond. The
In-lieu Register is recorded wherever an in-lieu of cheque is issued.
(2.A) Preparation of Cheque indents:
The indents for the following year for MICR & non-MICR Cheques are
submitted to FA & CAO (Books) every year. Quantity is arrived, taking the
actual consumption of cheques during the past few years.
(2.B) Issue of advice to Banks for Cheques books brought in use
The advice regarding the cheque book currently is in use is required to be sent
to Banks immediately after using the new cheque book.

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Sr.DFM’s Office, West Central Railway, Bhopal Process Manual
(2.C) Sending of Specimen signatures
Specimen signatures of accounts officers who are authorized to draw
payment are required to be sent to the RBI, SBI and other treasuries
concerned as and when the officials are transferred from and to the office.
Each authorized officer is allotted signature code by HQ. As and when officer
is transferred to other unit, this code is cancelled.
(2.D)Maintenance of Ex-chequer
The exchequer (cash authorization by RBI through Rly Board/HQ) is allotted
for every quarter by the HQ (FA & CAO/BOOKS) and it is intimated to all the
concerned units. Total expenditure incurred to the date should be compared
with Allotment of funds on daily basis to avoid a situation wherein the
expenditure starts exceeding the prescribed limit of funds. SR.DFM is
intimated timely regarding status of Ex-chequer. Besides, Cashbook figures
are reconciled with the figures appearing in the Ex-chequer register. A day-to-
day exchequer position is maintained in the register.
3) Remittance transaction
The transactions between the railways on the one hand and departments of
central and state government on the other hand are known as remittance
transactions. The following heads of accounts are operated to record the
remittance transaction:
a. Reserve Bank Suspense
b. Remittance into bank
c. Cheques and bills
d. PAO suspense
e. AG suspense
f. Remittance accounts with Defence and postal
g. Reserve Bank Deposit
3.A Reserve Bank Suspense:
The transactions that originate in the books of defence, Postal department,
and ministry of external affaires or in DGS&D and get adjusted in the books
of railways are settled through reserve bank of India. The suspense head RBS
is operated to record the inward transactions intimated by the departments
mentioned above. All items under the RBS should be cleared by the closing of
March accounts, however in case of any uncleared balance in the head at the
_________________________________________________________________________

Books Section: chapter 5 REV:00 Page 2 OF 20 01.01.09 Approved By______________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual
end of year; the debit balance is transferred to miscellaneous advance revenue
while credit balance is to be transferred to deposit miscellaneous account.

3.B Remittance into Bank and reconciliation


This account is a suspence head under major head “L Suspence &
Miscellaneous” and intended to record the remittances made into banks and
to watch their realization.
The amount deposited into banks, as adviced by chief cashier/ paymaster, are
debited to “Remittance into Bank” through general cashbook and credited to
“Revenue/Service head”. Station earnings are remitted into banks in two
ways. In the first instance, some stations may directly remit the cash into
bank while in other stations may forward the cash to cash office through
traffic cash safe and the chief cashier/pay master deposit cash in the bank.
While depositing the cash in bank, “treasury remittance notes” are prepared
to obtain acknowledgment from the banks. Some times instruments like
cheques and DD are received in accounts office for realization. They are sent
to cash office/pay office mentioning the head of allocation to which amount
should be credited. In reciprocation, Cash office/pay office sends one copy of
Bank acknowledgement to account office of challans, remittance on
daily/weekly/fortnightly basis as possible. On receiving the cashbook, entries
made in the book are checked in respect of the concerned challan numbers
and amount. Thereafter, a cash JV is prepared by debiting to remittance into
bank “00867009” and crediting to revenue or service head. After finalization of
cashbook, a JV and an ATD is prepared by minus debiting to “00867011” and
debiting to HQ. In the books of HQ, which receives the ATS from divisions,
workshop units, construction units, and the statement of remittances into
bank, allocation head “00867009” is charged through a JV .On receipt of
clearance memos from RBI and the focal point branches in respect of cash
and cheques, DD deposited into bank, books section prepares a JV debiting
remittance into bank “00867011” and crediting to reserve bank deposit. The
balance under the head “remittance into bank” “00867009” represents the
cash or cheque deposited into bank but not acknowledged by them. Balances
in the allocation “00867011” represent the cash or cheque deposited in bank
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and acknowledged by them. The item mentioned in allocation “00867009” and
allocations “00867011” are matched and in case of any unmatched item and
remained uncleared; writing to RBI for clearance of the same.

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Reconciliation of Remittance into Bank (Flow Chart of Debit Portion)

Station Earnings
Section of HQ A/Cs Dept. Deposited in Any Body depositing cash
Depositing DD/Cheques Cash office to pay office through MR
to Pay Office by MRT through CR
Notes

Cash/Pay
office
Units other than
HQ depositing The cash office deposits all the
DD/Cheques to receipts into the bank through
pay office challans (two foils)
Through MRT

Challans (2
Foils)

Goes to
the Bank The copy Sent to HQ
Concerned A/Cs office through
MCR or Cash Extract
for HQ portion except
in cases of deposits
which are received
T.C. is from units sent to the
raised to concerned unit.
HQ Office

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From the above, it is observed that there are four sources of receipts against
remittance into bank (RIB). For all the receipts made during the month, RIB is
debited and corresponding credit is given to final heads by concerned units /
section. For TC, RIB is debited and minus debit to unit concerned is given.
All the MRT and MR are fed in the HQ A/C office (ACCESS), wherein the
summery of MCR is generated. Also, all the summary for the day of cash
extract is fed in excel sheet to arrive at cash as per cash extract for month.
Challans for various sources are fed in the AFRES and the same are
reconciled with MCR and Cash extract / TC figures to ensure that there are
no missing challans. Any discrepancies noticed are brought to the notice of
cash office and is rectified.
The total figure in the cash extract, MCR and TC should reconcile with the
Debit booked under RIB during the month.
Credit portion consists of the following parts:
i. Remittances through challans
ii. Remittances through e-payment,
iii. Remittances through RTGS
iv. Challans consists of remittances made by cash office to the bank.
v. E-payment consists of crediting the amount under electronic system carried
out by SBI, Jabalpur and SBBJ, Kota.
vi. RTGS system also includes electronic remittances carried out by Union
Bank of India, Rewa.
Entire statement of remittances made are consolidated by the SBI, Focal Point
Branch and sent to FA & CAO‘s office daily.
Day wise receipts of bundles from focal point branch are feeded in the AFRES
separately for challans, e-payment Jabalpur, e-payment Kota and RTGS – UBI
Rewa.
Below is a flow chart, which explains the flow of whole remittance system:

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Challans from
Various Banks E-payment RTGS from
from SBI, Union
Jabalpur & Bank of
SBBJ, KOTA India, Rewa

SBI, Jabalpur
(Focal Point)

Daily Bundle

Monthly
DMS
FA & CAO’s Reserve Bank
Office of India
RBI MEMO

Day wise credits accorded by the focal point as per daily bundle are entered
manually into a register. This daily data is reconciled manually with the
monthly statement sent to FA & CAO’s office by the focal point. This monthly
statement is called Detailed Monthly Summary (DMS).
The focal point branch also sends the day wise receipt to Reserve Bank of
India for crediting into the Railway Account. RBI to FA & CAO advises the
amount so credited day wise by RBI into the Railway Account through a
statement called RBI memo.
Reconciliation between RBI memo and DMS
While preparing the RJV every month from RBI memo, it is ensured that the
amount so credited by RBI reconciles with the DMS sent by focal point
branch.
After all the challans, e-payment data and RTGS Data are fed in the AFRES, is
ensured that the AFRES data reconciles with the DMS sent by the focal point.

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The reconciliation between RBI memo with DMS AND DMS with AFRES data
are done in an excel sheet. Differences, if any between the AFRES and DMS
are brought to the notice of SBI, Focal Point, who rectifies the data through a
separate bank authority called GAD. After rectification through GAD, RBI
does the necessary rectification in the RBI Memo in the forthcoming month.
Once all the debit and credit challans are fed, matching of individual challans
is done in the AFRES. The factors taken into consideration during the
reconciliation are:
a. Station Code
b. Bank Code
c. Challan Number
d. Amount
List of unmatched debit and credit challans extracted out of reconciliation are
matched manually.
AUTHORITY; FA& CAO/JBP LETTER NO : WCR/ACS-HQ/EFFY/LTR-
CIR./08-09 DATE 18.02.2009
3.C CHEQUES & BILLS RECONCILIATION.
A statement of cheques issued is prepared with the help of source data
available in the section. The paid cheques data is available at two levels; at
the Divisional level and the HQ level. The FA & CAO /BOOKS provides the
data in the soft and hard copy through ATC to concerned Division. This data
is matched with the paid cheques data available in the division. A statement
of mis-match items is generated to find out the reasons only for those
cheques, which do not tally. After finding out the reasons the issued/paid
data is modified suitably and matched again to see there is no item mis-
matching. While finding out the causes for mis-match extra debits are either
transferred to respective units or RBI is advised to withdraw debits from the
debit scroll accordingly.
The basic documents from which reconciliation is done are:-
a) Cash Book (CHEQUES & BILLS FIGURE)
b) Computerized cheques summary prepared by Cheques Section
c) JV figures
The reconciliation is on the basis of cheques issued statement prepared by
converting the source data of cheques section. The database of cheques
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section is based on cheques numbers fed before printing. Therefore, the
figures appearing under head “00867002” of cheques and bills represents
cheques issued figure and should be equal to total of that. The figures
appearing under head “00867003” cheques and bills represents cheques
cancelled or paid cheques figure. The differences of the allocation head
“00867002” & “00867003” represent the balance figure in the head “cheques
& Bills”.
3.D PAO SUSPENSE:
PAO SUSPENSE head is operated to settle the transaction with central
government departments.
3.E AG SUSPENSE:
AG SUSPENSE is operated to settle the transactions with the state
government departments.
3.F Remittance accounts with postal and defence:
This head of account is operated to record the transactions originated in the
books of railways and finally adjustable in the books of defence and postal
department. Advance schedules are sent to the account officer of these
departments showing the number, particulars and amount of each voucher in
respect of which debit is to be transferred to RBI. On receipt of the memo of
clearance necessary adjustments are made in the final head of accounts.
3.G Reserve Bank Deposit:
This head is operated upon to record transactions in connection with
remittance made into bank/ cheques encashed and transaction settled with
non railway government department. The adjustments are made through RBI.
The payment to a retired railway employee is arranged by nationalized bank
on the basis of pension payment authority issued by the railway. The debit in
the respect of pension payment is raised by the bank through RBI which is
entered into the debit side of abstract “L” and credit side to reserve bank
deposit. Before the closing of accounts each month the balance under these
heads is reconciled with general books and schedule is prepared showing the
transaction with RBI. The balance under this head is closed to government at
the end of year.
4) Transfer Transactions:

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The transactions which are settled by way of book adjustment between two
separate accounting units within the same railway or between two different
railways are known as Transfer Transactions and needs to be kept distinct
from normal transfers.
The following heads of accounts are operated to record and adjust transfer
transactions.
a. Transfers, Railway Revenues}
b. Transfers, Railway Capital} for transactions involving revenue transactions
in the Capital accounts books and vice
versa
c. Transfer “A” Divn. } to transfer the transactions originated in one
Accounting unit to the other accounting
unit to which It pertains.
d. Transfer “B” Divn } ---------SAME------
e. Transfer “C” Divn } ---------SAME------
& so on
f. Transfers Railways } to adjust the transactions between zonal
railways and Production units
“A” Rly } ---------SAME------
“B” Rly } ---------SAME------
“C” Rly } ---------SAME------
& so on
Transactions arising in the accounts of one accounting unit which are
adjustable in the accounts of another unit within same railway or between
two railways should be transferred to the letter by either operating the head
“Transfer Divisional” or “Transfer Railway” depending on the case may be.
A transfer certificate is prepared and issued in form “A 406” in triplicate if a
foreign railway is involved or in duplicate if the same Railway is involved.
Transfer certificate against a particular accounting unit should be serially
numbered. Every accounting unit should ensure that there should be no
breaks in serial numbers and if any break is noticed, the concerned should
call for missing transfer certificate immediately. Two separate registers are
maintained for recording outward transactions and inward transactions.
Before the closing of cash book for the month various section prepares TC and
handed over to books section for entering in register and dispatch to
responding unit. In case of inward transactions, Books section enters the
same in inward register and gives it to the concerned section for acceptance.
In order to ensure that the adjustments are carried out concurrently both by

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the originating and responding unit, it is necessary to carry out the
adjustment without delay. Any delay in the adjustment will not only adversely
affect the budgetary control but will also lead to distortion of accounts. In
order to ensure that no transaction remain unadjusted for long, the
accounting units meetings to reconcile transfer transaction are held at the
end of accounting quarters of June/ September and at the end of three bi
monthly endings November, January, and march. The above reconciliation
meetings are held at zonal railway HQ and also zonal railway should conduct
a separate a transfer divisional meeting for the same. During the meeting the
representative of zonal railway meets together and reconciles the figures. The
balances under transfer transactions or transfer divisional or brought to nil at
every quarter / bi-monthly ended month. Disputed items if any finally
adjusted in March account. The purpose of closing the balances to “NIL” is to
ensure that the transaction pertaining to a financial year is adjusted in the
very same year. This also ensures that all expenditure is booked to final head
of account so that accounts of railway reflect true state of affairs.

5) Reconciliation of Pay Master’s Cash Book


Reconciliation of pay master’s cash book is done to ensure that the cheques
favoring chief cashier for disbursing of the bills to the parties included in the
Abstracts of bills (A.1107) popularly known as CO-7 BILLS, have correctly
been accounted in the chief cashier’s cashbook. This reconciliation is done on
monthly basis and purpose of this reconciliation is to ensure that the amount
of bills passed in a month does not exceed the exchequers provided for.
6) DEBT HEAD REPORT: form ‘A’ 749
A Report on the balances under the “Debt Heads” and “Remittance Heads” is
prepared after the closing of March accounts by various units at Divisional,
Workshop and Construction level in the form ‘A’ 749.The reports are then sent
to the FA & CAO for compilation from where it is submitted to Railway Board.
This report is called the Debt Head Report. The report contains the
outstanding balances with explanations for important variations from the
previous year’s balances and comments on the efficiency of the balances at
the end of the year under review.
Following ‘Debt’ and ‘Remittance Heads’ are reviewed in the ‘Debt Head
Report’:
i) ‘F’ Loan and Advances
ii) ‘I’ Small savings.
iii) ‘J’ Reserve Funds.
iv) ‘K’ Deposits and Advances.

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v) ‘M’ Remittances.
Adjustment Accounts with Postal Department.
Adjustment Accounts with Defense Department.
vi) PAO Suspense and AG Suspense.
In addition, the following information is also furnished in respect of Deposit
Miscellaneous:
(a) Opening balance as on Ist April, receipts and disbursements during the year
and closing balances on 31st March under each classified heads of Indian
Railway Deposits,
(b) Receipts and Disbursements during the year under ‘Cash’.
The report is based on an analysis of various balances enumerated above.
The report, besides reviewing outstanding balances, furnishes explanations
for major variations form the previous year’s balances and comments on the
efficiency of the balances at the end of the year under review. Certificates are
furnished by the concerned in regard that the balance shown in the report
agrees with the General books and are supported by details. A copy of the
same is given to Audit for scrutiny and acceptance of the report.

7) Preparation of exchequer outgo monthly statement:


For the purpose of maintaining a concurrent record of Cash outgo the net
amount of bills passed for payment as entered in the Abstract of Bills should
be posted regularly in a manuscript register classified by Sub-head of
Demand and Suspense head (eg. PF, Unpaid, Dep. Misc., F-Loans & Adv.
Etc.). The register should be totaled monthly Demand wise and Suspense
head wise and sent to FA&CAO.
( Ref: PARA 1137 A1)
8) Preparation of Approximate and Actual Account Current (monthly):
An Account current is simply a statement showing the receipt and
disbursement of an accounting circle, duly classified under the prescribed
heads of account. (Ref: PARA 324 A1)
Approximate Account Current is a statement of Approximate Receipt and
disbursement and is submitted by 5th of the following month that to which
figure relate. In this Account Current cash figure of adjustments are taken.

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Approximate Account Current is prepared and sent to Railway Board through
FA&CAO and onward figures are communicated to Finance Ministry to decide
Ways & Means of Govt. for the month.
9) DEPOSIT UNPAID:
When the Pay office returns bills to the Accounts office there may be some
unpaid items in them. The amounts so unpaid will be remitted by the pay
office in to the Bank accompanied by a statement in Form A –1959 that is
known as the unpaid list. All items of unpaid wages shall, as a rule, be
credited to “Deposit Unpaid Wages” (Para 316-A- I). Items of other than wages
are credited to respective deposits such as Dep “E” etc.
10) PASSING PAY ORDERS RELATING TO UNPAID WAGES AND MAINTENANCE
OF UNPAID WAGES REGISTER.
Unpaid wages list is prepared in three foils, one is retained by the cashier who
prepares it as his office copy, the other is sent to the Books section in the
Accounts office and the third copy is sent to bill preparing unit. These
statements are filed & numbered consecutively to facilitate detection of any
missing sheets at any time. When a claim is subsequently received for any
sum remaining unpaid through a pay order or C 4 the same is verified with
the unpaid wages register so maintained and the fact of the subsequent
payment is noted against the entry of the relevant item. The pay order for
payment from Unpaid wages should be prepared after it has been ascertained
from the Pay department that the amount has not already been disbursed by
cashier out of his Imprest or floating cash i.e. C 4.
11) RECONCILIATION OF UNPAID WAGES:
The reconciliation of unpaid wages is done separately for debit and credit
portion. The credits are reconciled with the amounts remitted by the cashiers
to Railway credit reflected in the Cash slip, with the totals of the unpaid
statements received individually from cashiers. The debits are reconciled with
the totals of CO7 passed and amount accounted under Deposit Unpaid Wages
in the general books.
12) Recoupment of cash Imprest (C4s) of cashiers:
After remitting unpaid salary/wages amount in to Bank /Treasury by the
cashier but before sending of salary/wages bills to Accounts office. If any

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employee approaches to cashier with proper witness etc. the cashier out of
cash available with him can make payment to the concerned employee by
preparing C-4 voucher. After making payment by the cashier it is sent to
Accounts office for recoupment of payment made by cashier out of cash
available with him. Accounts office by giving a remark against the unpaid list
item of employee concern.
13) EMD- passing of pay orders and maintenance of register:
Earnest Money Deposit (EMD) submitted by the contractors at the time of
tendering in the form of paper security or deposited/remitted at station
should be maintained in manuscript register. It shoud be released /refunded
on issue of Letter of Acceptance etc. since as per latest Railway Board
guidelines EMD should not be converted into part security deposit.
14) SURPRISE CHECK OF THE CASHIERS (PARA 1989 A1)
a. Check physical cash and note down the denomination.
b. Check revenue stamps on hand and note down the value.
c. Check C4s i.e. cashiers’ Imprest pending with accounts.
d. Check whether there is any P-28 and note down the value. Ensure that P-
28s are those, which are not already included in the C4s.
e. Value of extracts viz. On behalf payments should be examined and value
noted down.
f. Dues from cashiers, if any may be noted down.
g. Short passed/ Excess passed may also be noted.
h. Item no.1 above may include soiled notes, keep separate denominations for
soiled notes while recording item no: 1.
i. Check stamps on pay sheets and note down the value.
j. Now, total cash available with the cashier should be equal to sum of serial
nos. 1 to 9.
k. Check the private cash declared by the cashiers with the Register
maintained for the purpose.
l. Check the safe seal Register.
m. Checking of the undelivered cheques with the cashier.
n. The checking of checks or miscellaneous receipts deposited by the various
parties remitted properly.

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After exercising the above checks cashier’s account (P6) is prepared.
i. Extract from Cashier’s Cashbook subsequent to last P4 (Bill returning advice)
accepted by DC/Pay and his liability is adjusted. Extract PMR No and
amount in column no. 2 and 3 (column no. 1 is for date).
ii. Examine the vouchers and identify the unpaid amounts in Col.4.
iii. Ensure no voucher is older than one month from the date of PMR.
iv. Identify vouchers of different accounting units and show distinctly.
v. Having examined the above, record pending liability month wise and
accounting unit wise accordingly.
vii. If any pending paid vouchers are on hand for which P4 has been prepared
but not given to DC/Pay, work out his liability minus receipt vouchers is
equal to current liability.
viii. Compare the amount under column no.4 with Sr.No.10 and certify.
In addition to above, the following points may also be checked.
A. Cashiers’ Ledger should be checked to tally the liability of the cashier on
that day.
B. C4 Recoupment Register should be checked to ensure the number of C4s
given for recoupment by the cashier.
C. Vouchers handed over by the cashiers to stations for payment should be
checked with handing over summary and handing over form (HO) duly
signed and acknowledged by SM to whom it is handed over.
D. Cheques District should not have cheques on hand for more than five
working days.
E. Returned Cheques Register should have entries of returned cheques. The
returned cheques should be entered in outside ledger. Accounts will get
NIL credit.
F. Cheques district should not have liability for more than one month.
15) Accountal of Misc. Cash Receipts.
Every Pay office prepares a summery of all miscellaneous cash receipts and
sends it to the HQ along with all relevant challans. HQ Booking section on
receipt of the summary sorts them out according to accounting unit-wise and
sends the vouchers to concerned accounting units to whom it pertains along
with an ATC giving credit to concerned accounting unit and debiting HQrs.
The ATC is accompanied with all the relevant vouchers and date-wise totals of
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the amount received. This section on receipt of the vouchers feed the details
of the vouchers there in date-wise, allocating the different heads of account to
which it pertains to. Then a JV is prepared to account for such miscellaneous
receipts by crediting respective heads of account like EMD, Abstract Z etc.
and giving (-) credit to TDHQ.
16) Imprest – Passing of First/Enhanced Imprest: Para 1050 - FI
An Imprest is a standing advance of a fixed sum of money placed at the
disposal of a branch officer to meet the petty office expenses and emergent
unforeseen expenditure. Pay orders relating to such Imprest are received in
accounts office for payment. The following points are kept in mind before
passing such pay orders.
a) That the Pay orders are accompanied with the copy of sanction of the
competent authority duly attested by him.
b) It has the concurrence of the Associate finance branch.
Having been verified the above stated points the pay order is passed by
debiting the head ‘00867201’ i.e. “Permanent Cash Imprest” and crediting
head ‘00867002’ i.e. “Cheques & Bills”. If one time imprest is to be converted
into regular imprest or if the amounts of the imprest is to enhance the same
procedure is followed.

17) Maintenance of Capital and Revenue Ledger: F 310 A1

The Ledgers both Capital and Revenue (Capital Ledger for capital transactions
and Revenue Ledger for transactions revenue in nature) are posted monthly
after closing of the journal. The ledger reflects various heads of accounts
recording all receipts and charges of the accounting circle and also show the
progressive balances under those heads at the end of each accounting period.
These figures are the general books figures and are reconciled with the
individual balances reflected under each head of account.
18) Check List for Inspection of Cash and Accounts of a Cashier:-
When the Accounts staff with the gazetted officer visit Cash office for
inspection they should ensure the followings:
(a) Cash Balance of the Cashier has been done by actual count.

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(b) The bills in hand have been checked with reference to the summary of
bills.
(c) Any bill has been retained beyond the prescribed period.
(d) The payment has been property witnessed as observed in the body of the
bills.
(e) A summary of unpaid bills has been prepared.
(f) The cash Balance has tallied with the amount of unpaid bills in hand.
(g) While determining correct book balance and the balance of Cash-in-Hand on
the date of verification the following factors, have been considered or not :
I. Challan-In-Transit: (The amounts of challan issued by D.C. but received
/taken into the Cash Book by Cashier)- Verification should be done taking
into account the last complete challan only.
II. List-In Transit: (Credit taken by the cashier on submission of paid
vouchers to the D.C. but not scrutinised and returned to Accounts office
by D.C..List in transit should be reconciled with D.C.’s Balance by the
inspecting official.
III. Dues retained by D.C. : ( Full amount corresponding to the bills debited
to the cashier both in D.C.’s balance sheet and in Cashier’s Cash Book not
made over to the cashier) such dues are to be treated as Assets in
Cashier’s Account.
IV. Payment made through Debit Forms: It is to be ascertained whether
Debits forms have been issued properly and on getting the bills back after
payments, the Debits Forms have been cancelled .Whether Debits Forms
are issued serially / sequencially, whether the officials receiving payments
through Debit Forms have signed the Debit Forms under proper seal and
signature, Debit Forms payment should be shown in the Assets side of the
Cashier’ s Balance Sheet.
V. Cash on account of M.O.Returned: Money order register to be checked
and amount returned included in the liability of the cashier.
VI. Amount shown as unpaid in the list of paid vouchers : Has Cashier
deposited unpaid amount to D.C. through M.R. or not ?.
VII. Amount given by D.C. in advance of corresponding Bills:- Do the
accounts of cashier include this amount in his liability ? The amount is a

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liability of the cashier because the foil has not been received through
D.C.’s challan.

19) Procedure for Test-Check:


The Test check should, apart from verification and thorough examination
of facts and figures embodied in various documents brought under test
check, be directed to an intelligent scrutiny to find out whether the clerk(s)
understand their duties and rules governing them and do the work allotted
to them diligently and whether there is any tendency to do the work
casually. Test check should particularly be conducted at least once in a
month by SO and all officers. The test checks should not be of routine
nature rather they should focus on system improvement, procedural
lacuna and lapses. The underlying idea should be efficient disposal without
any violation of rules and procedures. The checks should also reflect the
updated skills of the officer.
- [PARA 803 A1]
19.1) Recording of results of Test- Check; _
The result of test check should be recorded systematically in a manuscript
register in the form given below:-

SR Item of Extent of Test Particulars of Name of the SO/SSO Result of Whether the
NO. work test check prescribed vouchers elected (A) who had test Test discrepancy in
checked for test check checked the item check col.6 has been
pointed out by
the supervisory
staff
1 2 3 4 5 6 7

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

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should be endorsed “Test checked” under the dated initial of the official
conducting the test check.
The exact nature of the discrepancy noticed should be briefly indicated in the
appropriate column of the test check register. If the discrepancy calls for a
lengthy note, the same should be given as a separate note for further disposal
being done on the connected file(s) and a cross reference to this note should be
recorded in the relevant column of the Test Check Register.
The observations as a result of the test check should be clearly indicative of
the appraisal by the checking authority of the quality of performance of the
clerks whose work came up for test check.
19.2)Test- Check of registers:
Another important item of test check is the inspection of different registers by
the Gazetted Officers. The intervals at which different registers maintained in
Accounts Offices should be put up for inspection by Officers.
19.3)Periodicity of submission of Test- Check oregister to Officers:
Every test checks register should be provided with an inspection sheet below
the front page indicating the month of test check, date on which put up and
the date reviewed by the Officer concerned. The test check registers of Section
Officers and Senior Section Officers should be put up to the Branch Officer on
the 10th of each month indicating the test check done on the work of clerk in
the preceding month for review and orders, where necessary, by the Branch
Officers.
Important tips for AFRES Users:-
• Each and every user in the section including S.S.O. is allotted separate ID
name and password. Supervisor of the section will ensure periodical
changes of password for each and every user of Books section. The entry of
such effect is to be kept in the manuscript register opened for the purpose.
The period for changing in password will be at the interval of at least 15
days .

• After customization of AFRES programe, SSO (In charge of the section) will
run Audit trail of their section. This is to be run at the interval of 15 days

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Books Section: chapter 5 REV:00 Page 19 OF 20 01.01.09 Approved


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Sr.DFM’s Office, West Central Railway, Bhopal Process Manual
and obtain signature of concerned officer. SSO will be given rights for
accessing and running Audit trail.

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


password is not to be shared with any other person.

• If there is any modification in any rules/programme due to Railway Bd’s


policy/circular /orders or due to any other reasons the modification in the
AFRES programe be done after proper testing of such changes is carried
out and results of such effect should be recorded before final
implementation of application.
Note: The detailed procedure of working on AFRES is annexed as AFRES
USER MANUAL.

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Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

1. Introduction
The Advanced Finance and Railway Earning & Expenditure
System or AFRES for short, is an integrated programme that
captures the working of the accounts office at the zone level and
at the divisional level. The system handles payments made by the
Railways and accountal of railway earnings apart from regular
finance and accounts. A number of associated activities are also
covered. AFRES is organized into interconnected but independent
modules, each module handling a category of activities. The
Books module is one of the various modules of the AFRES.
Transaction Transfer Cheques Issued
This form is used to transfer the cheque drawn data from temporary
table to the cheque bill table. Here while the transfer the validations
for bank code, date, amount will be reflected during processing
transfers.

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Form Layout:

The type of inputs the system accepts and other details are described
below.

Prompt Description
Accounting Year Enter the Accounting Year & Month.
Month
Accounting Unit Enter the Accounting Unit. Accounting Unit
cannot be blank, must be a valid.
Cheque Details:
Bank Code Bank Code is displayed
Band name Bank name is displayed
Cheque No. Cheque Number is displayed
Cheque Date Cheque Date is displayed
Party Name Party Name is displayed
Cheque Amount Cheque Amount is displayed
Cheque Sl. Cheque Sl. Is displayed
Cheque Bills – TC/JV - TC Entry
This option is used for entering Transfer Certificates.
Form Layout:

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Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Type of data the system accepts and other details are described
below.
Prompt Description
Division/Railway Select from the radio group
Inward/Outward Select from the list Inward/Outward.
Debit/Credit Select from the list Debit/Credit.
Division Enter the Division or Railway Code. Division
cannot be blank, must be valid.
TC Number Enter the TC Number for Inward TC or view
Outward TC. Leave blank to generate new Outward
TC. Cannot be blank for Inward.
TC Date Enter the TC Date.
Accounting Year & Month Enter the Accounting Year & Month.
TC Amount Enter the TC Amount
TC Type Enter TC Type. TC Type cannot be blank, must be
a valid. Description is displayed.
Section Enter Section. Section cannot be blank, must be a
valid.
Particulars Enter the Particulars
Ref. Number Enter the Reference Number.
X-Code Enter the Valid X-Code
Allocation Enter the Valid Allocation
Allocated Amount Enter the Valid Allocated Amount.
SPU Enter the SPU. SPU cannot be blank, must be a
valid.
Sub-SPU Enter the Sub-SPU
Deposit Key Enter the Deposit Key
Guage Enter the Guage.
Work Code Enter the Work Code
Total Total is displayed

TC/JV - Cash Outward Transaction


Function: This option is used to generate TCs for Cash Outward
Transactions
Form Layout :

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Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Type of data the system accepts and other details are described
below.
Prompt Description
Division/Railway Select from the radio group
From Date Enter the From Date. Date cannot be
blank. Date Cannot be greater than
current date.
To Date Enter the To Date. Cash Transaction
for the Division/Railway during the
period will displayed in Cash
Transactions block
Voucher No. Voucher Number is displayed.
Voucher Date Voucher date is displayed
CO7 Number CO7 Number is displayed
CO7 Date CO7 Date is displayed
Book No. Book Number is displayed
Dr/Cr Credit/Debit is displayed
Allocation Allocation is displayed
Amount Amount is displayed
TC Number TC Number will be generated for
selected transaction.
Seq. Num Sequential Number is displayed.
Sel Select to generate TC

TC/JV - TC Acceptance
Function :This option is used to enter TC Acceptance details.
Form Layout:

Type of data the system accepts and other details are described
below.
Prompt Description

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BOOKS Section: 6 Page 4 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Division/Railway Select from the radio group


Inward/Outward Select from the list Inward/Outward.
Debit/Credit Select from the list Debit/Credit.
Division Enter the Division or Railway Code
TC Number Enter the TC Number
TC Date TC Date is Displayed
Accounting Year Mnth Accounting Year & Month is Displayed
TC Type TC Type & Description are displayed.
TC Amount TC Amount is Displayed
TC Accepted Amount Enter Accepted TC Amount.
TC Unaccepted Amount TC Unaccepted Amount is displayed
Particulars Particulars is Displayed
Budget Head Balance amt Budget Head/Bal. Amount is displayed.
Ref. Number Reference Number is Displayed
X-Code Displayed
Allocation Displayed
Original Amount Original TC Allocation Amount is Displayed
Allocated Amount Enter the Accepted TC Allocation Amount.
SPU Displayed
Sub-SPU Displayed
Deposit Key Displayed
Guage Displayed
Work Code Displayed
Total Total is displayed
TC/JV - JV Entry
Function: This option is used for entering JVs.The total debit
amount should be equal to the total credit amount.

From Layout:
Type of data the system accepts and other details are
described below.
Prompt Description
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BOOKS Section: 6 Page 5 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Voucher Type Select from the list Capital or Revenue


JV Number Enter JV No. to view or Leave blank for new JV
AU Enter the AU.
JV Date Enter JV Date
Accounting Year & Enter Accounting Year & Month
Month
JV Type Enter JV Type
Section Enter Section
Narration Enter Narration
X-Code Enter the X-Code

Allocation Enter the Allocation. Must be valid


SPU Enter the SPU
SSPU Enter the Sub SPU
Debit/Credit Select Debit/Credit from list
JV Amount Enter the JV Amount
Deposit Key Enter Deposit Key
Guage Enter Guage
Voted/Charged Select from list
Work Code Enter Work Code
Ex-Voucher No Enter Ex-Voucher no
Cost Centre Enter Cost Centre
Total Debit/-Credit Total is displayed
Total Debit/-Credit Total is displayed
TC/JV - JV Generation
Function: This option is used for generating JV from Accepted
Transfer Certificates.
Allocation Details for the JV are taken from the Accepted
Allocation details for the TCs.
Form Layout:

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BOOKS Section: 6 Page 6 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Type of data the system accepts and other details are described
below.
Prompt Description
Division/Railway Select from the radio group
Debit/Credit Select from the list Debit/Credit.
Railway Code Enter the Division or Railway Code.
TC Number Enter the TC Number. Details are retrieved.
TC Date TC Date is Displayed
TC Amount TC Amount is Displayed
Accepted Amt TC Accepted Amount is Displayed
In / Out Inward/Outward is displayed
Accounting Year Mnth Enter the Accounting Year & Month.
TC Type TC Type is displayed.
Section Section & Description are displayed.
Ref. Number Reference Number is displayed.
X-Code X-Code is Displayed
Allocation Allocation is Displayed
Allocated Amount Accepted Amount is Displayed.
SPU SPU is Displayed
Sub-SPU Sub-SPU is Displayed
Deposit Key Deposit Key is Displayed
Guage Guage is Displayed
Work Code Enter the Work Code
Budget Attrib Voted/Charged is Displayed
TC/JV - JV Confirmation
Function: This option is used for confirming JVs entered by
other sections.

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BOOKS Section: 6 Page 7 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Form Layout:

Type of data the system accepts and other details are


described below.

Prompt Description
Section Enter the Section. Section cannot be blank
Accounting Year Enter the Accounting Year & Month.
Narration Narration is displayed
AU AU is displayed
JV Type JV Type is displayed
Vch Type Voucher Type is displayed
JV No. JV Number is displayed
JV Date JV Date is displayed
Book No. On Selection Book Number is generated.
Book Date By Default System Date is displayed, Can be edited.

Cheques - Cheque Generation :


Function: This form is used for Generating Cheques for CO7s
already confirmed. Once the Save button is pressed,
Cheques will be generated, Book Number & Date will be
displayed for each CO7. Also the Cheque stationary
numbers and Block serial numbers will be validated and If
Cheque stationary range is not available, the user will be
prompted for input. Finally, the details of the Cheques
generated will be displayed. The following rough serial no
for the day will be displayed.

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BOOKS Section: 6 Page 8 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Form Layout:

Type of data the system accepts and other details are described
below.

Prompt Description
Cheque Date Cheque Date to be entered
Prepare The Prepare radio group can be used to prepare cheques
or rough statement based on the option selected.
Priority By The cheques can be prioritized based on Section or
Value.
In case of Section, CO7 which are posted for the given
Bill section only will be displayed
Section Enter the section if the Priority is by Section.
Value Enter Value if Priority is by Value
CO7 Number Co7 Number is Displayed
CO7 Date Co7 Date is Displayed
CO7 Amount Co7 Amount is Displayed
Book Number Book Number is Displayed
Book Date Book Date is Displayed
Select Click to select Co7.
View Balance Click on this button to view Cash Authorization balance
details
CO7 Number Co7 Number is Displayed
CO6 No Co6 Number is Displayed
Net Amount Net Amount is Displayed
Party Name Party Name is Displayed
Paymode Paymode is Displayed
Bank Code Bank Code is displayed
Club Click to generate consolidated cheques for similar parties

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BOOKS Section: 6 Page 9 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Form Layout:

Type of data the system accepts and other details are described
below.
CO7 Number Co7 Number is Displayed
CO7 Date Co7 Date is Displayed
CO7 Amount Co7 Amount is Displayed
Book Number Book Number is Displayed
Book Date Book Date is Displayed
Bank Code Bank Code is Displayed
Cheque No Cheque Number is Displayed
Cheque Date Cheque Date is Displayed
Party Name Party Name is Displayed
Cheque Cheque Amount is Displayed
Amount
Block Sl No Block Serial No is Displayed
Batch No Current Batch No is Displayed
Confirm Click to Confirm the batch
Cancel Click to cancel the whole process and regenerate the
cheques
Cancellation/Re issue Cheque:
Function: This option is used for canceling a cheque or
reissuing a cancelled cheque. At the time of reissue, though
you can split the cheque into multiple cheques, amount of
cheques issued should be equal to the original cheque
amount. Using this option, you will be able to Cancel/Re
issue Cheque by entering the Cheque number. If the
Cheque is to be re issued, Cheque has to be cancelled first.

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BOOKS Section: 6 Page 10 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Form Layout:

Type of data the system accepts and other details are described
below.

Prompt Description
Cheque Enter Cheque Number to be cancelled or reissued
Number
Cheque Date Cheque Date is Displayed
Cheque Cheque Amount is Displayed
Amount
Bank Code Bank Code & Name are Displayed

Party Name Party Name is Displayed


Cancel/Reiss Select Cancel to cancel a cheque or Reissue to
ue reissue a cheque already cancelled
Bank Code Enter Bank Code

Bank Name Bank Name is displayed

Party Code Enter Party Code or select from List of Values

Party Name Enter Party Name or if Party Code is entered, Name is retrieved

Cheque Enter Cheque Amount. Sum of Cheque Amount of Reissue


Details must be equal to cancelled Cheque amount
Amount

Cheque Serial Numbers:

Function: This option is used for maintain the history of Cheque


Serial Numbers. The range of Cheque serial numbers should
be entered here. Any number of ranges can be entered.
During Cheque preparation, if the current range of cheque
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Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

serial numbers is exhausted, the next range will be


automatically initialized from the values entered using this
option. On selecting the cheque type (RBI or Non-RBI) from
the list, the details will be displayed in the detail block. New
range can also be entered.
Form Layout:

Type of data the system accepts and other details are described
below.
Prompt Description
Cheque Type Select the cheque type from the list.

From Number Enter starting number of the range of cheque numbers.

To Number Enter the end number of the range

Initialization Date Enter the Initialization Date.

Utilized Displays whether the range is exhausted or not.

Block Serial Numbers:


Function: This option is used for maintain the history of the
range of Block Serial Numbers. The range of Block serial
numbers should be entered here. Any number of ranges can
be entered. During Cheque preparation, when block serial
number for a particular bank is exhausted, a new range for
that bank will be taken from the range of block serial
number currently in use. When such numbers assigned for
a bank reaches the end number of the current block, the
next available block serial number range will be initialized as
the current block.

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BOOKS Section: 6 Page 12 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Form Layout:

Type of data the system accepts and other details are described
below.
Prompt Description
From Number Enter starting number of the range of block numbers.

To Number Enter the end number of the range

Last Number Enter the last number which has been assigned to a bank.

Initialization Date Enter the Initialization Date.

Current Block Displays whether a range is currently in use.

Utilized Displays whether the range is exhausted or not.

Bank wise Block Serial Numbers:


Function: This option is used to enter or view the Block Serial
Numbers for each Bank. During Cheque preparation, when
block serial number for a particular bank is exhausted, a
new range equal to the Block size for that bank will be
initialized from the last number of the block serial number
range entered using the Block Serial Numbers option.
Form Layout:

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BOOKS Section: 6 Page 13 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Type of data the system accepts and other details are described
below.
Prompt Description
Bank Code Enter the Bank Code or select from the LOV.
Start Number Enter starting number of the range of block
numbers.
End Number Enter the end number of the range

Block Size Enter the Block size

Current SL No Displays the last block number assigned to a


cheque of the bank
Block Initialization Date Enter the Initialization Date.

SL Type Enter the serial type. M for RBI, Chennai and O


for other banks
Description Displays the serial type description

Cheque Query:
Function: This option is used to view the Cheque, CO7 and
CO6 details for a Cheque. Details for a Co6 Number or Co7
Number can also be viewed. Enter a Cheque Number or Co6
No or Co7 No to view the details.
Form Layout:

Type of data the system accepts and other details are


described below.
Prompt Description
Cheque Number Enter Cheque Number. Details will be displayed.
Co6 Number Enter Co6 Number. Details will be displayed for the Co6

Co7 Number Enter Co7 Number.


Batch Batch Number is Displayed
Cheque Number Cheque Number is Displayed
Date Cheque Date is Displayed
Bank Code Bank Code is Displayed

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BOOKS Section: 6 Page 14 of 16 Rev:00 01.01.09 Approved By ___________


Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Bank Name Bank Name is Displayed


Party Name Party Name is Displayed
Amount Cheque Amount is Displayed
CO7 Number Co7 Number is Displayed
Date Co7 Date is Displayed
CO7 Amount Co7 Amount is Displayed
Book Number Book Number is Displayed
Book Date Book Date is Displayed
CO6 No Co6 Number is Displayed
CO6 Date Co6 Date is Displayed
CO6 Amount Net Amount is Displayed
Total Total Amount is Displayed. This will be equal to the
Cheque Amount
Reports: Following reports are generated through AFRES:

Report Name
Cheques & Bills
Cheques & Bills Summary Au-wise
Cheques & Bills Summary – Bank
wise
Statement of Cheque drawn and FMIS
amounts
Bank lists - No transaction for more
than 6 months
Statement of Scrolls - AU wise, Bank
wise
Statement of Scrolls -Bank wise,
Month wise
Statement of Scrolls -Statement of
Unmatched Scrolls
Statement of Cheque drawn
Statement of Cheques encashed -
Encashed for the month
Statement of Cheques encashed -AU
wise, Bank wise, Month wise
Statement of Cheques encashed -Bank
wise, Month wise
Statement of Cheques encashed -
Month wise, Bank wise
Statement of Scrolls encashed
Cheques Outstanding - Less than one
year
Cheques Outstanding – More than one
year
Suspense – Dealing Main branch
statement
Suspense - Focal point bank
statement
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Sr.DFM’S Office , West Central Railway, Bhopal Process Manual

Suspense - Pink book statement


Suspense – Suspense Register
Scroll and detail amount
Scroll Statement
Cheque duplicate statement
&Wrong Debit Statement
Cheques
Cheque Drawn Statement
Cheque Counterfoils
Cheque Printing
Abstract of Bills
Rough Statement
Enclosure to Telephone Cheques
Bank Advice for Cheque Block
Number Initialization
Batch wise Cheque Details
Day wise Cheque Summary

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BOOKS Section: 6 Page 16 of 16 Rev:00 01.01.09 Approved By ___________


Sr,DFM's Office, West Central Railway, Bhopal. Process Manual

BOOKS SECTION RESPONSIBILITY/ACTIVITY CHART


ACTIVITY DETAILS
SR SUPERVISO
AA.CODE
NO. R CODE

1 Receiving of CO7 various section for issuing cheque A1 B1


Checking of CO7 before generating cheque Summery.as
2 (i)No of voucher mentioned in CO7 are enclosed or not.
(ii) voucher signed by ADFM & Sr DFM or not. A1 B1
(iii) CO7 confirmed by concern section or not.
(iv) Name mentioned in voucher or appeared in CO7 is correct.
(v) Treasury properly mentioned in CO7 or not.
After checking CO7 generated cheque abstract,check counter foil and statement of cheque B1
3 A1
drawn
4 On generating check counter foil printing of cheques serial and tresury wise A1 B1
After Printing cheque put for checking to SSO (books) Put for signnature to ADFM/SR.DFM B1
5 A1

6 Issuing inliue cheque.and their adjustment. A1 B1


Preparation ECS Fllopy & Printing EFT data and send to Central Bank of India Jail Road B1
7 A1
Bhopal for payment.
8 Maintaining and watch on Exchequer A1 B1
9 Implementation of afres books module as cheques and bills. A1 B1
Entry of counter foil of cheque issued with cheque No and amount treasury wise . B2
10 A1
11 Entry of paid cheques received from HQr through ATC with scrolls statement. A1 B2
12 Monthly Reconciliation of cheque & Bills with General Book figure. A1 B2
Correspondence of old item of cheque & bills from various treasuries and HQr and chasing B2
13 A1
their position of clearance.
14 Preparation of JV regarding cheques & bills ATC and other matter. A1 B2
15 Implement of afres book module as cash & pay and cheques & bills and other A1 B2
On reciving print out of monthly cash book Transfer divison /Transfer Railway checking
16 amount booked against accounting unit ATD/ATC or TC physically handed over by A1 B3
concerned section or not as cash transaction.
After checking cash ATD/ATC of various unit or foreign railway are entered in TC register
17 A1 B3
and sent to concerned unit.
Receiving revenue /capital ATD/ATC without cash with JV from various sections after
18 checking enter in TC/TD register, send to concerned accounting unit. A1 B3

Preparation of monthly JV batch for O/W & I/W TC/TD and other adjustment,handed over
19 A1 B3
to Mr Dinesh Ghole for finalisation monthly journal .
On reciving I/W ATD/ATC from HQr and other accounting units after checking as amount
20 ,vouchers etc entered in TC register delivered to concerned section for acceptance or JV.And A1 B3
chasing for JV same amount .
After finalisation of journal and preparing A/C current preparation of Monthly List of
21 A1 B3
accounting unit wise .
Attending quarterly and Bi-monthly TC/TD meeting and reconciliation of figure from verious
22 A1 B3

BOOKS SECTION CHAPTAER 7 PAGE 1 OF 3 01.01.09 APPROVED BY______


Sr,DFM's Office, West Central Railway, Bhopal. Process Manual

BOOKS SECTION RESPONSIBILITY/ACTIVITY CHART


SR ACTIVITY DETAILS SUPERVISOR
AA.CODE
NO. CODE

23 Passing of new imprest and posting ,reconcelation of cash imprest. A1 B3

Passing of payment authority recived from other acounting unit and raising debit to
24 A1 B3
concerned units.

25 Passing of pay order of BEM and posting ,reconciliation with General Book. A1 B3

26 Finalisation of DP JV. A1 B4

27 At the time of finalisation J.V checking of correctnees of head of the allocation,spending unit. A1 B4

Finalisation of DP JV.Preparation of A/C Current and their schedule ,submitting to HQr


28 A1 B4
book section on or before 28th of every month
Worked out variation between actual A/C and approximate A/C current and put up to Sr
29 A1 B4
DFM.

30 Posting, maintaining and reconciliation of General Book . A1 B4

Checking of various section heads figure as mentioned in General Book at time reconciliation
31 A1 B4
with General Book.

32 Maintaining old SEM paper security item and their disposal. A1 B4

33 Preparation of Debit Head Report and other relativ return and their timely submission. A1 B4

34 Distribution of JV print to conceren section A1 B4

On reciving misc. cash book from DCP BHOPAL and SCI ET.cheking of amount
voucher/chalan mentioned in cash book or properly after checking summrised of various
35 A1 B5
head of A/C allocation wise and perpration of misc cash recived and ensuring of amount
booked in proper allocation.

36 Maintaning and finalisation monthly cash book . A1 B5

Preparation and submission of monthly approximate account current of HQr book section on
37 A1 B5
or before 6th every month.

38 Preparation and raising ATD of remittance into bank to HQr every month. A1 B5

39 Distibution of cash book print to conserned section . A1 B5

40 Preparation monthly exchequer report and submission to HQr. A1 B5

41 Preparation of monthly surprise check report and submission to HQr. A1 B5

Checque and DD recived from outsider in f/o of Sr.DFM WCR.BPL send to realisaion to DCP
42 A1 B5
BPL and after realisaion their accoutal.

43 Maintaning of division sheet along with adjustment of its ATC to various proper heads . A1 B5

BOOKS SECTION CHAPTAER 7 PAGE 2 OF 3 01.01.09 APPROVED BY______


Sr,DFM's Office, West Central Railway, Bhopal. Process Manual

BOOKS SECTION CHAPTAER 7 PAGE 3 OF 3 01.01.09 APPROVED BY______


Sr.DFM's Office , West Central Railway, Bhopal Process Manual

BOOKS SECTION CODE ALLOCATION SHEET

S.No. Name Designation Alloted Code

1 AKHILESH JAIN S.S.O A1

2 S.K.NEMA A.A. B1

3 M.K.JAIN A.A. B2

4 B.N.YADAV A.A. B3

5 P.V.RAGHWAN A.A. B4

6 SURESH PYARELAL A.A. B5

Approved By
(Name & Seal)

BOOKS SECTION CHAPTER 8: REV:00 PAGE:1 OF 1 0.01.09 APPROVED BY__________


Sr.DFM's Office , West Central Railway, Bhopal Process Manual

BOOKS SECTION CHAPTER 8: REV:00 PAGE:1 OF 1 0.01.09 APPROVED BY__________


Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

Books Section Process Flow Chart


CHEQUES & BILLS

Credit
(While issuing cheques)

CO 7 JV
(To pass the bills) (Co7 is left out of cash book)

Cashbook
Cheque Summary
(Basis for preparing cheques)

RJV Summary Issued Cheque statement


(Compilation of cheque summaries
prepared in a month)

Hard copy Soft copy


LEDGER

Reconciled

______________________________________________________________________________________

Books Section Chapter 9 REV:00 PAGE 1 OF 4 01.01.09 Approved By _________


Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

Books Section Process Flow Chart


CHEQUES & BILLS

(-)Credit i.e. Debit


(When the cheques are paid or cancelled)

Cancelled
Cheques paid cheques

Paid cheque Paid


statement cheques

Soft copy Soft copy Hard copy


issued

ATC
Matching at
EDP
Pairing

JV
Mismatch statement
Rectification of
errors if any through
ATC with HQrs.
Rectification of errors LEDGER

Final Reconciliation Total Reconciliation.

Books Section Chapter 9 REV:00 PAGE 2 OF 4 01.01.09 Approved By ____________________


Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

Books Section Process Flow Chart


UNPAID WAGES

Unpaid wages lists prepared by cashiers

Executive Office Divisional Accounts office Bank Challans

Pay Order Unpaid Register HQrs Bks Sec.

CR Cash Slip
Internal Check DR

DR CR JV
CO 7 LEDGER
r .

Books Section Chapter 9 REV:00 PAGE 3 OF 4 01.01.09 Approved By ____________________


Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

Books Section Process Flow Chart


‘M’. REMITTANCE

Summary of Electricity Bills from Sr.DEE

DR
Accepted copies of electricity bills from
consuming units

JV

DR Schedule of Transactions

Suspense Register Acceptance from concerned Dept.

ATC from HQrs.


CR
LEDGER (Dr.)

JV Adjustment

LEDGER (Cr.)

Books Section Chapter 9 REV:00 PAGE 4 OF 4 01.01.09 Approved By ____________________


Document No: BUD

BUDGET SECTION

PROCESS MANUAL

Sr. DIVISIONAL FINANCE Manager’s OFFICE


WEST CENTRAL RAILWAY, BHOPAL

Telefax :0755-2457138
Railway Phone :5064
Email : sobudbpl@rediffmail.com
Compiled By Co-Ordinated By Approved By

( D.N. Baheti ) ( D.N. Dwivedi ) ( Hira Ballabh )


SSO/BUD SSO/ISO Sr.DFM
SR.DFM’s Office, West Central Railway, Bhopal Process Manual

CONTENTS

Rev. No/Date No. of


Section/ Ref Title
00 01 02 Pages

1 Abbreviations 01

2 Introduction 07

3 Sources of references 01

4 Scope of work 01

5 Sectional Procedure 15

6 Activity Chart 01

7 Staff Allocation Sheet 01


8 Organization Chart 01
9 Calendar of Returns 01
10 Monthly Report 01

11 Measurable Parameter 01
12 List of Records 01
13 Flow chart 02
14 Statement of A.R.,REBE,MPFR 03
15 Changes to process manual 01
SR.DFM’S Office, West Central Railway, Bhopal Process Manual

ABBREVIATIONS

S.No. Term Expansion


1. AA Accounts Assistant
2. B.E. Budget Estimate
3. B.G. Budget Grant
4. B.P. Budget Proportion
5. DFM Divisional Finance Manager
6. F.A. &. C.A.O. Finance Advisor and Chief Account Officer
7. N.D.A. Night Duty Allowance
8. OT Over Time
9. P.U. Primary Unit
10. R.A.R. Revenue Allocation Register
11. RE Revised Estimate
12. SR.DFM Senior Divisional Finance Manager
13. SSO Senior Section Officer
14. T.A. Traveling Allowance

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SECTION BUDGET
MONTHLY REPORT
Month:

Monthly Processed Status


Target Period
S. No. Activity Remarks, if any
of Clearing Processed Processed
Total Recd
In Time not in time

Vetting of August
1 Review,R.E.B.E.,Final Modification (of
Revenue Demands)

2 Preparation of Budget Proportion

3 Monthly Financial Reviews

Compilation and submission of


4
Appropriation Accounts

Maintenance of Computer AMC


5
Register

SSO - BUDGET SR.DFM


(Name & Seal) (Name & Seal)

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MEASURABLE PARAMETER:

1. Vetting of Budget Documents 3 working days for each Department.


2. Financial Reviews 7 working days after the receiving of RAR.
3. General: All other target dates and due dates regarding the submission of the
returns pertaining to this section are so fixed by Railway Board or as given in
the calendar of returns.

IMPORTANT NOTE: It is to be ensured by the concerned section in charge that the


updating of system is take place within barest minimum time and any revision, on
account of new rule/instruction from Rly Bd/ HQ’s warrants revision of process
manual, is taken place within one week of receipt of letter. However, to ensue the task
“On EVERY 1ST DAY OF THE MONTH THE SECTIN INCHARGE WILL REVIEW THE
SYSTEM AND ENSURE THAT ALL UPDATION /REVISION DURING THE MONTH ARE
TAKEN PLACE.”

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LIST OF RECORDS
Section: ____________________
BUDGET SECTION
Record NO. Format No., if
S. No. Record Name Records Custodian Retention Period
any
REVENUE ALLOCATION REGISTER AC/BPL/BUD/RAR/01
1
A-312 SO (BUDGET) 3 Years

2 APPROPRIATION ACCOUNT AC/BPL/BUD/APP./02


F-403 SO (BUDGET) 5 Years

3
EXPENDITURE (FINANCIAL YEAR) AC/BPL/BUD/EXP/03 SO (BUDGET) 3 Years

4 BUDGET PROPORTION
(FINANCIALYEAR) AC/BPL/BUD/BP/04 SO (BUDGET) 3 Years

NOTE: Before destruction of above records (in case of retention period is over), SR.DFM ‘S prior approval will be
required. Further, a circular may be issued to all concern asking them to withdraw any record from destruction if
required by them for any purpose.

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FLOW CHART OF APPROPRIATION ACCOUNT

DEPARTMENT WISE,DEMAND WISE


APPROPRIATION ACCOUNT
PREPARED BY EXECUTIVE
DEPARTMENTS

ACCOUNTS OFFICE RECEIVES


AND VERIFIES WITH REFERENCE
TO RAR AND FINAL GRANT
RECEIVED FORM 40

COMPILING DEMAND
WISE SUBHEAD WISE
NO
APPROPRIATION
ERRORS ACCOUNT

YES

SUBMITTED TO
SENT BACK TO EXECUTIVE FA&CAO/WCR
DEPARTMENT FOR
RECTIFICATION

END

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Flow chart of Budget Review (Budget Section)


DEPARTMENT WISE,DEMAND
WISE BUDGET REVIEWS
PREPARED BY EXECUTIVE
DEPARTMENTS

ACCOUNTS OFFICE RECEIVES


AND VERIFIES WITH REFERENCE
TO FIGURES AVAILABLE AND
TREND OF EXPENDITURE

VETTING IS
NO DONE.RETURN TO
ERRORS
EXECUTIVE
DEPARTMENT FOR
ONWARD
TRANSMISSION TO
YES RESPECTIVE HQRS.

SENT BACK TO EXECUTIVE


DEPARTMENT FOR
RECTIFICATION

END

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CHANGES TO PROCESS MANUAL

Amendment New
Date Section Particulars of Amendment
No. Rev No.

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1.0) INTRODUCTION:
Budgeting is an exercise of planning in advance. It is a tool of
scientific management of the resources of an organization in the perspective of time.
To be more precise budget is a statement of estimated annual receipts and
expenditure of an organization.
Budget of Government
In the Govt of India, Budget has constitutional sanction under
Article 112(1). The constitution defines budget as ‘Annual Financial Statements”
which is an estimated receipts and expenditures of government of India for the
coming financial year and it is to be laid before both houses of parliament. The
annual budget contains following elements:
(a) A review of the preceding year, including the actual receipts and expenditure in
that year;
(b) An estimate of the receipts and expenditure of the coming year; and
(c) Proposals, if any, for meeting the requirements of the coming year.
Since separation convention in 1924, Railway budget is prepared
separately and placed before both houses of Parliament in advance of general budget
and appropriation Act that enables withdrawal of money from consolidated fund of
India, is also passed separately for Railways. The Railway budget is prepared on the
same line as general budget and the figures of Railway budget are subsequently
merged with general budget while submitting the same to Parliament. Being a Govt
body every penny earned by Railways goes to the Consolidated Fund of India and
similarly expenditure is also finally booked to it. ( PARA 301 F1)
2.0) BUDGETING IN RAILWAYS.
Railway budget is part of the General Budget of Govt. of India.
But, it is presented to the Parliament well before the general Budget. This separation
of Railway budget started in 1924 based on the recommendations of AcWorth
committee. The objective of this separation was to bring in stability for General
Revenues and strengthening of Railway finances since Railway was a major part of
the General Budget at that time.
The Railway Budget is presented in the forms of Demands for
Grants. The proposed expenditure included in the budget may be either Voted or

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Charged. The former class includes items for which provision of funds is subject to
the vote of parliament while the funds for the latter is form small part of budget, are
sanctioned by the President and are not subject to vote of the Parliament. The most
important aspect of Railway Accounting system is the existence of Cash as well as
Accrual based accounting because of the commercial nature of the organization.
3.0) STRUCTURE OF BUDGET
The framing of the Railway Budget for Revenue as well as
Expenditure has to be prepared with a careful forecast of the level of traffic expected
to be handled during the budget year.
On the side of the Railway budget, earning are categorized in
three abstracts i.e.
Abstract – X - Coaching earning
Y - Goods earnings
Z - Sundry other earnings

The budgeting exercises on the earning side are primarily carried


out at Zonal level, as the accountal and apportionment are done not below zonal
level.
On the expenditure side, we have Capital Expenditure and
Revenue Expenditure. The Revenue budget falls into 5 broad categories of the
Demands for Grant.
(i) Administration including staff welfare
(ii) Repairs and maintenance of track, rolling stock and plant and equipment.
(iii) Operating expenses
(iv) Expenditure on fuel
(v) Expenditure on works charged to revenue.
On the Capital side of the Railway budget, expenditure on assets
acquisition, modification and replacement is required to be presented under demand
number 16. As stated earlier the expenditure budget is presented in the form of
Demand for Grants which are as followed:

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Abstract 'A'- DEMAND NO. 3


Abstract 'B'- DEMAND NO. 4
Abstract 'C'- DEMAND NO. 5
Abstract 'D'- DEMAND NO. 6
Abstract 'E'- DEMAND NO. 7
Abstract F'- DEMAND NO. 8
Abstract 'G'- DEMAND NO. 9
Abstract 'H'- DEMAND NO. 10
Abstract 'J'- DEMAND NO. 11
Abstract 'K'- DEMAND NO. 12
Abstract 'L'- DEMAND NO. 13
Abstract 'M'- DEMAND NO. 14
Abstract 'N'- DEMAND NO. 12

CLASSIFICATION OF REVENUE EXPENDITURE

EXPLANATORY MEMORANDUM
General - All Abstracts

The revenue working expenses of the Railways are classified under 13 sub-
major heads with a separate Abstract for each Sub-major Head, viz.-

Sr. No. Abstract Particulars


(1) Abstract 'A'- General Superintendence and Services.
(2) Abstract 'B'- Repairs and Maintenance of Permanent Way and
Works.
(3) Abstract 'C'- Repairs and Maintenance of Motive Power.
(4) Abstract 'D'- Repairs and Maintenance of Carriages and Wagons.
(5) Abstract 'E'- Repairs and Maintenance of Plant and Equipment.
(6) Abstract F'- Operating Expenses-Rolling Stock and Equipment.
(7) Abstract 'G'- Operating Expenses-Traffic
(8) Abstract 'H'- Operating Expenses-Fuel.
(9) Abstract 'J'- Staff Welfare and Amenities.
(10) Abstract 'K'- Miscellaneous Working Expenses.
(11) Abstract 'L'- Provident Fund, Pension and other retirement benefits.
(12) Abstract 'M'- Appropriation to Funds
(13) Abstract 'N'- Suspense.

The Sub-major heads are divided into minor, sub, and detailed heads. The
introduction or abolition or change of nomenclature of any minor or sub head, the
transfer of a sub-head or detailed head from one minor head or sub head to another,
and any rearrangement of abstracts are not within the competence of a Railway
Administration. But the Financial Adviser and Chief Accounts Officer of a Railway
may with the approval of the General Manager introduce a new detailed head within
a sub-head except when the necessity arises of a new class of expenditure, in which
case the orders of the Railway Board should be obtained as to the sub-head under

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which the detailed head should appear. When, however, a new detailed head is
opened by Railway Administration, the Railway Board should be informed.
The structure of the accounts classification is such that it corresponds to and
is in line with the revised classification of the Demands for Grants. While the alpha
(i.e. the letter of the Abstract) corresponds to the Demand head, the minor, sub-head
and detailed heads of accounts, represent classification of the activity from a broad
grouping into its details. The classification lends itself to computerisation and its
utility from the point of view of analysis of costs will be greater when the compilation
is taken on the computer in due course of time. On computerisation of the
accounting system, the alpha of the abstract classification will be substituted by a
Numerical Code as follows:-

A-03, B-04, C-05, D-06, E-07. F-08, G-09, H-10, J-11, K-12, L-13, M-14 & N-
12

Which will be the same as for Demands for Grants. In this connection, a
summary of the Revised demand Structure-Demand for Grants for Expenditure on
Railways is given below:-

CLASSIFICATION OF REVENUE EXPENDITURE


____________________________________________________________________________
Sr. Group No. Demand
No. Name of demand
I. Policy Formulation and 1. Railway Board
Services Common to all
Railways 2. Miscellaneous Expenditure (General)
II. General Superintendence 3. General Superintendence and Services on Railways.
and Services on Railways
4. Repairs and Maintenance of Permanent Way and
III. Repairs and Maintenance Works.
5. Repairs and Maintenance of Motive Power.
6 Repairs and Maintenance of Carriages and Wagons.
7 Repairs and Maintenance of plant and Equipment
8. Operating Expenses-Rolling Stock and Equipment.
IV. Operation 9. Operating Expenses-Traffic.
10. Operating Expenses-Fuel.
11. Staff Welfare and Amenities.
V. Staff Welfare, Retirement 12. Miscellaneous Working Expenses.
Benefits and
Miscellaneous 13. Provident Fund, Pension and other Retirement
Benefits.
14. Appropriation to Funds.
VI. Railway Funds and 15. Dividend to General Revenues, Repayment of loans
payment to General taken from General Revenues and Amortization of
Revenues. over Capitalisation.

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While the classification upto the detailed head represents only the activity, the
structure of the classification also incorporates a two digit code to represent the
primary unit, i. e. the object of the expenditure/indicating on "what" the expenditure
is incurred viz., salary, allowances, wages, materials, consumable stores etc. The
indication of a classification of expenditure will, therefore, be complete only if the
Abstract, the minor, sub or detailed heads of activity as well as the code of the object
of expenditure are given, in that order for instance.

EXAMPLES:

(i) The wages of the permanent gangs engaged in manual maintenance of a


section of BG. track (with sanctioned speed of 100 km.p.h. -- i.e. a
group 'D' track) will be indicated as B. 241-01.

(ii) Ballasting of the same track will be indicated by B. 243-28.

(iii) The wages of Steam Loco crew will be indicated as F. 112-01.

(iv) The kilometrage allowance of Diesel Loco crew will be indicated as F.


212-10.

(v) The dearness allowance of train passing and Control office staff such as
Station Masters, Assistant Station Masters etc. will be indicated as G.
250-02 and so on,

It will be noted that last two digits show the "object" of expenditure.

Primary Units
In the structuring of Demands for Grants, following basic consideration are kept in
mind.
i) Demand should represent a homogeneous activity broadly
controlled by single departmental authority.
ii) Demand should equally correlate costs to results duly bringing
out the variable and fixed items of cost.
iii) The Demand should be equally balanced from the point of view
of total expenditure.
For proper accountal of Expenditure these demands have been further sub-divided
into various primary units for earning budget which is as under:-

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Primary (Objects) of Expenditure


Units
01. Salaries and Wages

02. Dearness pay and Dearness Allowances

03. Productivity Linked Bonus

04. House Rent Allowance

05. Compensatory (City) Allowance.

06 Interim Relief.

07. Transport allowance

09. Wages of Casual labour.

10. Kilometer allowance.

11. Overtime allowance.

12. Night duty allowance

13. Other allowances.

14. Fees and honoraria.

15. Transfer allowance.


16. Traveling expenses.

17 Air Travel Expense sanctioned in lieu of privilege passes.

18. Office Expenses.

19. Rental for P & T Telephone and call charges including Trunk Calls.

21. Advertising Expenses.

22. Utilities-Water, Electricity, etc.

23. Rental for office equipment (other than Data Processing).

24. Printing and Stationery including Publications.

27. Cost of materials from stock.

28. Cost of materials - Direct purchase.


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31. Fuel for other than traction.

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

33. Transfer of debits/credits from other units- (This primary unit may be
used for classifying Transfer debits/credits other than for Stores
debits/credits received from Stores Accounts in which case Primary Unit
27 may be used).

34. Adjustment of 'Wages' on POH and other repairs from WMS Account to
Revenue Heads.

35. Adjustment of 'materials' on POH and other repairs from WMS to Revenue
Heads.

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

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

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

39. Air Travel (Domestic)

40. Air Travel (Foreign)

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


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

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


floppies, computer stationary etc., rental of computers and AMC i.e. all
expenditure of recurring nature.

99. Other Expenses.

The primary units (object of expenditure) are an important and integral part of
the classification of expenditures as they serve to analyses the expenditure by the
element of cost viz., wages/stores/other expenditure etc.

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Sources and References:


All the Codes and Manuals issued by Railway Board have
Presidential sanction, therefore; any violation of these provisions would be
treated as irregularity. The circulars issued by Railway Board are extension
of codal provisions & they bear the same sanctity. In addition to the above
documents, there are Manuals, which have been issued on particular
subject by Zonal Headquarters with the approval of FA&CAO. Therefore,
Some of the specific instructions contained in these manuals may vary from
Zone to Zone.
The difference between Codes and Manuals is that the codes
give rulings and authority i.e. what to do and what no to do, whereas the
Manuals provide the procedure of doing things.
The working of Budget section is guided by the following documents:
• Indian Railway Accounts Code, part I
• Indian Railway Finance Code, part I & part II
• Railway Board’s circulars,
• Instruction/guide lines issued from time to time by Railway Board,
• Instruction issued by HQ.
In this Process of framing document on budget , efforts have
been made to incorporate vital aspects of Codes and Manuals and at the
same time standards and targets have also been incorporated for effective
disposal of files.
In this documents instead of reproducing details from codes and
manuals the relevant Para has been quoted in abbreviated form . For example
701 FI means paragraph 1 of Chapter VII of the Indian Railway Finance
Volume-I.

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SCOPE OF WORK

Budget Section has to deal with following functions: -

1. Budgeting
Compilation of BE/RE.
August Review/ R.E.B.E., Final Modification (of Revenue Demands).
2. PREPARATION OF:
I. Budget Proportion.
II. Distribution of Budget allotment.
III. Monthly Financial Reviews.
IV. Distribution of Budget allotment.

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SECTIONAL PROCEDURE
The main functions of budget section includes (A) framing of budget
estimate, august review, revised estimate budget estimate, modification to final
estimate (B) ensure that the actual expenditure within the budget grant (C)
rectification of wrong booking (D) funds certification.
1.0) Presentation of Budget
The estimated receipts and expenditure received from different zonal
Railway and other units are consolidated and finalized at Railway Board level and
presented before both houses of Parliament by Union Minister of Railways.
1.1) Estimate of Receipts:
They are divided into two parts; Revenue receipts and Capital Receipts.
The budget for receipts is compiled and consolidated by traffic Accounts branch.
Railway earnings are divided into following heads:
1. Passenger Earnings
2. Goods Earnings
3. Other Coaching Goods
4. Sundry Earnings
Receipts are compiled based on the monthly balance sheets of station Masters and
goods supervisors. In the sundry earnings part of the earnings are accounted for
and reflected through Monthly Account Current and submitted to traffic accounts
branch by Accounting Units. These earnings relate to sale of grass, licence fee, way
leave charges etc.
1.2) BUDGETING EXERCISE
The steps involved in presentation of Railway Budget are as followed:
(i) Preparation of budget
(ii) Voting of budget
(iii) Execution of budget.
(iv) Review of budget as executed.
Voting and review of budget are parliamentary functions whereas preparation and
executions are primarily the functions of executives at divisional and higher levels.
1.3) THE PREPARATION OF BUDGET:
The Revised Estimates of the current year and Budget Estimates for the
ensuing year are prepared simultaneously and the preparation takes place at grass
root level i.e. at divisional level. The entire responsibility for framing the estimates
depends upon the spending/earning units. Though the actual work of compilation
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and scrutiny rests with the FA&CAO. After proper scrutiny the budget estimates are
submitted to the Railway Board by the Zonal Railways. The estimates so submitted
are subject to the critical examination by the Railway Board and after taking all
relevant factors into account the Board frames estimates of income and expenditure
for the Railways as a whole. The revised estimate for current year is fixed under each
demand for each Railway after taking into account the actual of previous year, the
expenditure during first seven months of current year and any special feature that
may be known.
So far as expenditure on Capital Work is concerned the Railway
Administration compiles a list of works in progress and new works to be taken up in
the following year. The Board discusses proposals for New Works and a list of
approved work is prepared. The proposed expenditure in the following year on such
New Works and on Works in Progress forms the work Programme or the budget
estimate of the Rly for expenditure to be incurred on new or ongoing works. Separate
provisions are made for different types of Capital works, which is in the form of
funds like Capital Fund, DRF, DF, OLWR, Capital fund. The level of funds may
slightly vary from budget to budget.
1.4) VOTING OF THE BUDGET:
Before presentation of budget in the parliament the recommendation of the
President is obtained under Article 113(3) of the constitution. The budget papers are
circulated to the MPs and the budget is debated in the parliament.
1.5) BUDGET DOCUMENTS PRESENTED TO THE PARLIAMENT
1. Speech of Minister of Railways introducing the budget
1. Key to budget documents
2. Budget for the Railways revenue and expenditure
3. Explanatory memorandum on the Railway Budget.
4. Memorandum explaining proposals for adjustment of fare and freight
rates.
5. Demands for grants (Part-I & Part-II)
6. Works machinery and rolling stock Programme (Part-I & Part-II)
7. Indian Railways year book
8. Indian Railways annual reports and accounts.
In accordance with the Article 114 of the constitution, after the
demands for grants have been voted by the Lok-Sabha, a bill is introduced to
provide for the appropriation out of the consolidated fund of India of all money
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required to meet the grants made by the Lok-Sabha as also expenditure if


any, charged on the consolidated fund of India. The grant as voted by the
Parliament and appropriation for charged expenditure as sanctioned by the
President are distributed by the Railway Board among the Zonal Railways and
other spending authorities. The order by which allotments are made is called
budget orders. The capital budget is presented in the form of Rolling Stock
and Final works Programme.
1.6) THE STAGES TO REVIEW OF BUDGET
(i) August review – Mid term review – Sent to Board in August
(ii) Revised estimates – Sent to Board in December
(iii) First modification – Sent to Board on 1st of Feb
(iv) Final modification sent to Board on 1st of March
1.7) CONTROL MECHANISM
I. Budgetary Reviews:
As a means of controlling the expenditure, a monthly review
comparing actual expenditure with the proportionate budget allotment is
made and an appreciation report bringing out the special features in respect
of each month’s account is also submitted to the Railway Board. This
monthly review is done right up to the Divisional level and it helps in
controlling the expenditure effectively. This also helps in managing the
finances in a better manner by the respective departments by postponement,
modifications in the physical activities being contemplated or appropriation of
funds.
II. EXCHEQUER CONTROL
Exchequer control is a mechanism for concurrent regulation of
cash outgo vis-à-vis allotments. The books of Railway expenditure falls into 2
categories viz cash and adjustments. The former covers all transactions
completed through cash payments or issue of Cheque and broadly comprises
disbursements to staff and contractors, settlement of bills/claims for supplies
and services etc. Adjustments represent inter or intra accounting unit booking
transactions, which entail no cash outgo.
The object of exchequer control is to establish a system for correct estimation
of cash outgo and to monitor way and means allotted.

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APPROXIMATE ACCOUNTS CURRENT:


This is an exercise to ascertain the cash out go for the purpose
of arranging Ways and Means. At this stage cash outgo as well as adjustments
for the coming month are ascertained and submitted to Railway Board
through Zonal HQ.
It is thus an important tool of budgetary control. In the exercise
of exchequer control, the total allotments for the year are divided between
cash and adjustments. Board has laid down broad guidelines for making a
realistic estimate of cash and adjustment portion of expenditure falling within
the sanctioned budget. Thereafter, the cash outgo is further distributed
amongst the 4 quarters of the year. Railway Board issues quarterly cash
allotments. The actual cash disbursement during the quarter is reported
while asking for the cash allotment for the next quarter. The report is
scrutinized in the Board’s office to see the progress of cash expenditure vis-à-
vis the authorization for the quarter.
(A) Revenue Expenditures:
This is expenditure on day-to-day maintenance of the system.
Any expenditure that does not improve or appropriate the value of the assets
and the impact of expenditure does not last beyond one-year falls in this
category. Budget for Revenue Expenditure is prepared and booked under
Demands for Grants, which are further, subdivided into subhead, minor and
detailed heads. The classification is based on function of expenditure and
objective of expenditure.
Demand Name of Demand Name of
NO abstract
1 Railway Board
2 Miscellaneous Expenditure (General)
3 General Supdt. & Services on Railways A
4 Repairs & Maintenance of Way & Works B
5 Repairs & Maintenance of Motive Power C
6 Repairs & Maintenance of Carriages & Wagons D
7 Repairs & Maintenance of Plant & Equipment E
8 Operating Expenses-Rolling Stock & Equipment F
9 Operating Expenses-Traffic G

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10 Operating Expenses- Fuel H


11 Staff Welfare & Amenities. I
12 Misc. Working Expenses J
13 PF, Pension & other Retirement Benefits. K, N
14 Appropriation to Funds L
15 Dividend to General Revenue repayment of loan taken from M
general revenues and amortization of over capitalization.
16 Asset acquisition – construction and replacement

1.12) Primary Units (Objects) of Expenditure


1. Salaries and Wages
2. Dearness pay and Dearness Allowances
3. Productivity Linked Bonus
4. House Rent Allowance
5. Compensatory (City) Allowance.
6. Transport allowance
7. Air Travel Expense sanctioned in lieu of privilege passes.
8. Office Expenses.
09. Wages of Casual labour.
10. Kilometer allowance.
11. Overtime allowance.
12. Night duty allowance
13. Other allowances.
14. Fees and honoraria.
15. Transfer allowance.
16. Traveling expenses.
17. Rental for P & T Telephone and call charges including Trunk Calls.
18. Advertising Expenses.
19. Utilities-Water, Electricity, etc.
20. Rental for office equipment (other than Data Processing).
21. Printing and Stationery including Publications.
22. Cost of materials from stock.
23. Cost of materials - Direct purchase.
24. Fuel for other than traction.

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25. Contractual payments - (This primary unit may be used for works and
handling contracts and contracts for Engineering supplies of materials
etc. while all other direct purchase of other stores will be booked under
Primary unit 28).
26. Transfer of debits/credits from other units- (This primary unit may be
used for classifying Transfer debits/credits other than for Stores
debits/credits received from Stores Accounts in which case Primary
Unit 27 may be used).
27. Adjustment of 'Wages' on POH and other repairs from WMS Account to
Revenue Heads.
28. Adjustment of 'materials' on POH and other repairs from WMS to
Revenue Heads.
29. Excise duty paid/payable for purchase of materials.
30. Customs duty paid/payable for purchase of materials.
31. Sales Tax paid/payable for purchase of materials.
32. Air Travel (Domestic)
33. Air Travel (Foreign)
34. Cost of computer hardware/system, Software/application software
including expenditure on excise /customs and sales tax; IT related
consultancy contracts, cost of up gradation i.e. one-time expenditure
not being of recurring nature.
35. Cost of computer consumables (ribbons, cartridges etc.), discs, tapes,
floppies, computer stationary etc., rental of computers and AMC i.e. all
expenditure of recurring nature.
36. Other Expenses.
37. Customs duty paid/payable for purchase of materials.
38. Sales Tax paid/payable for purchase of materials.
39 Air Travel (Domestic)
40 Air Travel (Foreign)
50. Cost of computer hardware/system, Software/application software
including expenditure on excise /customs and sales tax; IT related
consultancy contracts, cost of upgradation i.e. one-time expenditure
not being of recurring nature.
51 Cost of computer consumables (ribbons, cartridges etc.), discs, tapes,
floppies, computer stationary etc., rental of computers and AMC i.e. all
expenditure of recurring nature.
99. Other Expenses.

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1.13) CAPITAL EXPENDITURE


1.13. A) Works Machinery and Rolling Stock Budget –
The revised and budget estimates for expenditure on
construction, acquisition, and replacement of new assets (briefly known as the
Works Budget), are prepared in the form of the Works, Machinery and Rolling
Stock Programme. Detailed instructions for the preparation and submission of
the Rolling Stock Programme and the Machinery and Plant Programme are
contained in the Indian Railway Code for the Mechanical Department
(Workshops). The Works Programme is required to be prepared in accordance
with the instructions embodied in the Indian Railway Code for the
Engineering Department. There is one single Demand for Grant for Works
Budget viz. Demand No, 16 for capital budget i.e. Construction and
Replacement. Whether the expenditure is met out of loan obtained from the
general exchequer or internal resources of Railways viz., ‘Revenue', the,
‘Depreciation Fund', the 'Development Fund' and 'Accident Compensation,
Safety and Passenger Amenities Fund'; Works Demand provides for booking
of expenditure by various Plan heads . For the purpose of link with the
accounts of Central Government, the Plan heads form a Minor Heads of
Railway Works Expenditure, under the Major Heads 546 and 547. Minor
heads of classification also refer to Plan head code. The list of Plan Heads is
as follows:-
Code number Description of Plan Head
11 New Lines (construction).
12 Purchase of new Lines.
13 Restoration of dismantled lines.
14 Gauge conversion.
15 Doubling.
16 Traffic facilities-Yard remodeling and others
21 Rolling Stock.
29 Road safety (L/Xing)
30 Road safety (ROB/RUB)
31 Track renewals.
32 Bridge work.
33 Signaling and Tele-communication works.
34 Taking over of line wires from P & T Department.
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35 Electrification projects.
36 Other Electrical works.
41 Machinery and Plant.
42 Workshops including production Units.
51 Staff Quarters.
52 Amenities for staff.
53 (i) Passenger amenities.
(ii) Other Railway Users amenities.
61 Investment in Government Commercial undertakings-Road
services.
62 Investment in Government Commercial undertakings-Public
undertakings.
64 Other specified works.
71 Stores suspense.
72 Manufacturing suspense.
73 Miscellaneous Advances.
81 Metropolitan Transport Projects
The source of financing is indicated by the following alphabets
while booking of works expenditure under the Revised Classification:
P- Capital Q- DRF S- DF R- OLWR
T- ACF
Expenditure under (OLWR) is financed from railway revenues,
i.e., it is treated as a part of the miscellaneous revenue expenditure of capital
nature. Expenditure budgeted under ''Capital" involves increase in the
Capital-at-charge of the Railways .Since dividend is to be paid to General
Exchequer of Govt for the capital portion of the Capital Structure , therefore,
dividend is paid for increament in this portion subject to the relief’s/
exemptions granted by the Convention Committee. 'Works Expenditure' of the
Railways is thus financed from Revenue, Railway Funds (DRF, DF and ACSPF)
a Capital provided by the General Revenues. In the event of the Railway's
revenue surplus not being adequate to fully meet the requirements of
Development Fund expenditure, the budgetary support from the General
Revenues would also include temporary loans to finance expenditure from the
Development Fund.

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Primary Units (objects) of expenditure for Works

(1) Pay and allowances of Departmental Establishment 01

(2) Payment to Casual labour 02

(3) Payment to Contractors and others for Engineering works or supply and 03

erection contracts etc.

(4) Direct supply of material 04

(5) Stores supplied from stock 05

(6) Freight on stores 06

(7) Credits for released material 07

(8) Others 08

(9) Transfer of debits/credits affecting capital works expenditure/suspense 09

accounts

(10) Productivity Linked Bonus 10

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

(12) Custom Duty 12

(13) Sales Tax 13

(14) Interim Relief. 14

(15) Travelling Expenses. 15

(16) Air Travel (Domestic). 16

(17) Air travel (Foreign 17

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


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

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


floppies, computer stationary etc., rental of computers and AMC i.e. all 51
expenditure of recurring nature.

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After receiving allotment from Rly board HQ distribute to unit. The distribution of
division-wise, demand-wise, subhead-wise budgetary allotment received from FA&
CAO is to be informed to OS Budget. -365 F1
1.15) Proportionate Budget allotment
The sanctioned allotment for the year is distributed over twelve months. This
is called Proportionate allotment or Budget Proportionate. While framing this,
the following factors are taken into consideration.
(i) Throw forward liability from the previous year
(ii) Expenditure which is not likely to be incurred evenly during the
year
(iii) Expenditure practically fixed and evenly distributed throughout
the year.
(iv) Keeping some reserve for meeting fresh or unanticipated
expenditure
(v) Trend of expenditure booked during previous years.
The demand-wise, department-wise, subhead-wise, PU-wise
proportionate budget allotment is fed into the computer for monitoring
the expenditure. This MIS to put up to SR DFM and DRM every month .
3.0) Monthly Financial Review
Being a Budget Control Officer Budgetary and expenditure
control is exercised by SR DFM by reviewing the financial position every
month. Here, department-wise, demand-wise, PU- wise expenditure to end of
the previous month is compared with Budget grant and Budget proportion
and major variations between BP and expenditure are analyzed and put up to
DRM. Budget supervisor is also being intimated so that necessary action can
be taken. A comparative statement of controllable heads of account like OT,
TA and NDA is prepared by comparing actual of current year, actual of
previous year and budget proportion. As regards works expenditure, plan-
head wise expenditure is compared with budget grant.
4.0) August Review Estimated (ARE)
4.1) Review of Expenditure –
This is mid-term exercise to review the trend of expenditure as
compared to budget grant. Railway Administrations should review their
expenditure in August to see whether any modifications are necessary in the
allotments placed at their disposal. The review in respect of each grant is
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submitted, to the Railway Board in form No F-383 so as to reach them not


later than 1st September each year. –383 F1
This is prepared by executives comparing actual expenditure of
previous first four months and full year and first three months (April to June)
plus approximate of 4th month (July) and anticipated booking in the
remaining months with BG. This is submitted to Accounts for vetting. Vetting
is done by verifying the correctness of figures and comparing the anticipated
expenditure with previous year’s expenditure and trend of expenditure in the
current financial year. If any variations are there, it is seen that justified
reasons are given therein. The following checks are carried out in August
Review:
(i) The reason for variation in the Primary Units & minor heads is clear &
cogent along with details leading to such variations.
(ii) ARE for demand no 16 is submitted in the prescribed format.
(iii) The forecast of works of expenditure on works should be made with
due regards to progress of expenditure & commitments that are likely
to materialize. Wherever the provision appear to be excess of the actual
requirement, should be surrendered at the ARE stage itself.
(iv) ARE for earning will be finalized under liaison with CCM/HQ, he may
coordinate in this regard and the estimate of traffic plans for
passengers & goods may be generated in CRIS software. The estimate
of actual originating & apportioned earnings for the proceeding year
vis-à-vis monthly details of current year may be furnished. The reviews
of civil grant vis-à-vis the budget allocation need to be carried out &
estimated requirements under “F” Loans & Advances’ only may be
furnished.
(v) The August Review, Revised and Budget Estimates etc. in respect of
earnings, the Railway through the windows based program namely
‘Budget Compilation System’ developed by CRIS furnishes Revenue and
works expenditure.
(vi) The August Review Estimates of Grant No 1 and 2 may be prepared
indicating details of approximate expenditure to end the concerned
month incurred under each primary unit.
(vi)We should make every effort to formulate their estimates for demands
in such a manner that various other post-budgetary increases such as
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hike in the price of HSD oil and unforeseen expenditure on account of


natural calamities etc. are met within the existing allotments.
(vii)To keep uniformity among the data of all Indian railways, credits
should be booked /projected only under the primary unit “other
expenses”. This instruction should be strictly adhered to in all
budgetary stages.
4.2) Target date for submission of August Review:-
The target date for submission of August Review, is fixed as 1st week of
August every year. However it is to be ensured that the August Review
should be submitted as per the date fixed by headquarter.
5.0) Revised Estimate –Budget Estimate (RE-BE)
This is 2nd stage of review done after the closure of Sep A/C. In
this stage Revised Estimates for coming the year and Budget Estimates for
next year are fixed for each demand. The estimates of expenditure in respect
of each demand should be prepared in duplicate, the, figures being given in
thousands of rupees. In preparing these estimates, it should be ensured that
the figures of actual expenditure for the preceding year shown in the estimate
agree with those reported to the Railway Board. The figures of actual
expenditure for the current year should represent the latest data.
5.1) Explanation of Variations –
A brief narrative explanation should be given of the causes (with
amounts involved in each case) of substantial differences between the figures
adopted for the revised estimate of the current year and (I) the actual of the
previous year, and (ii) budget allotment for the current year. Similar
explanation should also be given for differences between the figures of the
budget estimate of the ensuing year and the revised estimate of the current
year. Large variations, which compensate each other, should also be
indicated.
The revised estimate for the current year and the budget-
estimate for the next year should be fixed after taking into account the
expenditure of the previous year and comparing the expenditure during the
first seven months of the year with the corresponding period of the previous
year. A full explanation of special features and any exceptional and abnormal
adjustments (with amounts involved) included in each period of the previous
and current year as also in the next year, should be given in the explanatory
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note accompanying the estimates. The financial effect of variations on


account of specific reasons should be clearly brought out under each
Demand. When the expenditure anticipated in the last five months of the year
is disproportionate as compared with (I) the first seven months of the year or
(ii) the corresponding period of the previous year, reasons for the
disproportionate expenditure should be given in the revised estimate. Special
and non-recurring items of expenditure in a year should show a
corresponding saving in the following year. Likewise, when transfers are
made from one demand to another due to changes in classification, the saving
shown under one demand should agree with the excess shown under the
other demand. The estimates of the cost of establishment should be based on
past experience of their actual cost, with due allowance for any changes either
in the number or rates of pay of each individual establishment in the year in
which, or for which the estimate is being made. In the explanatory note
accompanying the estimate, information should be given as to what part of
the proposed expenditure represents expenditure on the permanent staff
already sanctioned, how much of the proposed increase in the next year is
due to ordinary increments, how much is new expenditure and how much for
temporary establishment. Reasons should be given for additional staff when
provision is made in the estimates for such increase in expenditure. ‘Staff
Statements’ under each Demand should accompany the estimates of ordinary
working expenses. Explanations for substantial variations in the numbers
should be furnished as between current year's budget and, revised estimates
and budget estimates for the following year. This is prepared by executives
comparing the actual of first six months (April to September) plus
approximate of 7th month (October) and anticipated booking in the remaining
months with BG and corresponding expenditure of previous year. Special
features, if any noticed, should also be considered at this stage. Vetting is
done as mentioned above.
- 324 to 331 F1
5.2) SCRUTINY OF REVISED ESTIMATE & BUDGET ESTIMATE
At the time of checking of Revised & budget estimate we check
the followings-
(i) A detailed analysis on the current trend of the expenditure and forth
coming future expenditure may be carried out before projecting RE so
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as to avoid excess/ saving. Credits & recoveries should be estimated


with utmost care.
(ii) Detail reasons for variation in respect of each minor head, taking all
primary units together and by primary units, for the demand as a
whole may be furnished.
(iii) It may be ensured that REs are accompanied with required annexure.
(iv) Debit/ Credit projections under various suspense heads of Demand no.
12/K may also be furnished with due care.
5.3) Target date fixed for submission of RE BE:-
The target date for submission of RE, BE, is fixed as 1st week of November
every year. However it is to be ensured that the RE BE should be
submitted as per the date fixed by headquarter.
6.0) Final Modification
Final Modification Statement submitted to HQ should be
furnished, for each grant separately, and it should reach them not later than
21st February finally to Railway Board, with statements showing additional
allotments required (both voted and charged) or surrenders to be made,
during the current financial year under each head of appropriation, as
prescribed in the budget orders, and requiring the sanction of the President.
The variations between the final modified allotments required and the revised
estimates as fixed by the Board should in all cases be supported by adequate
explanations of the reasons for the demand or surrender.
-385 F1
This is done after the closure of December accounts when the actual
expenditure of 9 months and approximate for 10th month are available.
Through this additional funds are asked / surrendered as per the
requirement. Vetting is done as mentioned above.
6.1) Target date fixed for submission of Final Modification:-
The target date for submission of Final Modification is fixed as 1st week of
January every year. However it is to be ensured that the August Review should be
submitted as per the date fixed by headquarter.
7.0) Appropriation Accounts
Apart from its significance as an instrument of Parliamentary financial control,
the Railway Budget is an important management tool. Broadly the financial
forecast in the Budget is related to the performance targets set for Railway
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Administrations, and it is the responsibility of the Railway Managements to


ensure the achievement of these associated targets.
-304 F1
Parliamentary Financial Control is secured not only by the fact that all 'voted'
expenditure must receive Parliament's prior approval, but also by the system of
reporting back to it, through the Public Accounts Committee, the actual
expenditure incurred against the Grants voted by Parliament and Appropriations
sanctioned by the President.
-401 F1
The statements, which are prepared by Railways and presented to C & AG’s Audit
Wing for presentation to the Public Accounts Committee, comparing the amount
of actual expenditure with the amount of Grants voted by Parliament and,
Appropriations sanctioned by the President, are called the “Appropriation
Accounts”. The aim is to ensure that the expenditure is done for the purpose it
was actually sanctioned by the Parliament.
-402 F1
8.0) The Compilation procedure of Appropriate Accounts:
The Appropriation Account for Revenue Demand 3 to 13 is prepared Department
wise, Demand wise, Subhead wise, PU wise by Executive department and sent to
accounts office. The compilation is done demand wise, subhead wise and suitable
explanation for variations are furnished in consultation with Executive
department. The compiled statement is sent to F.A. &. C.A.O’s office. For more
detail please see chapter IV of Finance code vol. 1.

*********

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ACTIVITY/ RESPONSIBILITY MAPPING CHART( BUDGET SECTION)

S. No. Supervisor AA
SCOPE OF WORK Dept.
Code Code

1 VETTING OF:
(i)_August Review,R.E.B.E.,Final Modification (of Revenue
ALL DEPTT. A1 B1
Demands)

PREPARATION OF:
2 ALL DEPTT. A1 B1
(i) Budget Proportion
ALL DEPTT. A1 B1
(ii) Monthly Financial Reviews
COMPILIATION AND SUBMISSION OF:-
3 (i) Appropriation Accounts ALL DEPTT. A1 B1

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Sr.DFM's OFFICE, West Central Railway, Bhopal Process Manual

BUDGET SECTION CODE ALLOCATION STAFF SHEET

S.No. Name Designation Alloted Code


1 D.N.BAHETI S.S.O A1

2 C.L.KURIL A.A. B1

BUDGET SECTION Chapter 07 REV:00 PAGE 1 OF 1 01.01.09 Approved by________________


Sr.DFM's OFFICE, West Central Railway, Bhopal Process Manual

BUDGET SECTION Chapter 07 REV:00 PAGE 2 OF 1 01.01.09 Approved by________________


Sr.DFM's Office, West Central Railway, Bhopal Process Manual

BUDGET SECTOIN ORGANIZATIONAL CHART

SR.DFM

SSO (Budget)
(A1)

AA
(B1)

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Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

CALENDAR OF RETURNS
SR NO. Name of Returns Period Due date of To be submitted
submission
1 Monthly position of Post Monthly Last Date Of FA&CAO
Created & Surrendered & Every Month
Vacancy Bank
2 Aug Review Yearly * 2nd Week of FA&CAO
August every
year
3 REBE Yearly * 2nd Week of FA&CAO
November every
year
4 F.M. Yearly * 2nd Week of FA&CAO
January every
year
5 Monthly Review Monthly 15th of Every FA&CAO
Month
6 Appropriation Account Yearly In the month of FA&CAO
June as per
schedule given
by HQ every
year.
* These dates are tentative, However the final date is fixed by HQ every as per directives
of Railway Board.

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SR,DFM'S OFFICE WEST CENTRAL RAILWAY BHOPAL PROCESS MANUAL

STATEMENT OF AUGUST REVIEW FOR THE YEAR


FIG IN 000'S OF RS.
Demand NO. Summary
Primary Unit 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16/17 18/24 27 28 31 32 33 34 35 36 37 39 50 51 99 Total
Actual Expenditure
Budget Grant
Exp. upto June

Exp. Upto july

Appx. Exp. Of previous 8 months

August Review

Difference (A.R.-ACT. EXP.)

Difference (A.R.-Bud.Estimate.)

BUDGET SECTION CHAPTER 14 PAGE 1 OF 3 01.01.09 APPROVED BY_________


SR.DFM'S OFFICE WEST CENTRAL RAILWAY BHOPAL Process Manual

WEST CENTRAL RAILWAY BHOPAL DIVISION


MONTHLY FINNANCAL REVIEW FOR THE MONTH OF
DEPTT. CIVIL ENGG FIG IN THOUSANDS
MH 1 2 3 4 5 7 9 10 11 12 13 14 15 16/17 18/24 27 28 31 32 33 34 35 36 37 39 50 51 99 Total
3A
MH-500 BG
EXP.
REMARK

BUDGET SECTION CHAPTER 14 PAGE 3 OF 3 01.01.09 APPROVED BY________


SR.DFM'S OFFICE,WEST CENTRAL RAILWAY BHOPAL PROCESS MANUAL

STATEMENT OF REVISED ESTIMATE AND BUDGET ESTIMATE FOR THE YEAR


FIG IN 000'S OF RS.
Demand NO. Summary
Primary Unit 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16/17 18/24 27 28 31 32 33 34 35 36 37 39 50 51 99 Total
Actual Expenditure(last year)
Budget Grant
Exp. upto SEP.
Last 6 month exp.

Revised Estimate

Budget Estimate

Variation( R.E.-ACT.EXP.)

Variation ( RE-BG)

VARIATION (BG-RE)

BUDGET SECTION CHAPTER 14 PAGE 2 OF 3 01.01.09 APPROVED BY________


Document No: INSP
January 01, 2009

INSPECTION SECTION

PROCESS MANUAL

Office of Sr. DIVISIONAL FINANCE MANAGER


WEST CENTRAL RAILWAY, BHOPAL

Telefax: : 0755-2457138
Railway Phone : 5052
E-mail : soinsp@rediffmail.com

Compiled By CO-ordinated by CO-ordinated by Reviewed by Approved by

(P.N.KATARE) (D.N.DWIVEDI) (RAJIV SHRIVASTVA) ( AJAY SHARMA) (HIRA BALLABH)


SSO/INSP SSO/ISO ADFM ADFM SR.DFM
CONTENTS
Title Page No No. of
Chapters
Date REV Pages

1 ABBREVIATION 01.01.09 01

STANDARDS OF FINANCIAL 01.01.09


2 01
PROPRIETY
01.01.09
3 INTRODUCTION 01

01.01.09
4 SOURCES AND REFERENCES 01

01.01.09
5 SCOPE OF WORK 01

01.01.09
6 SECTIONAL PROCEDURE 43

01.01.09
7 ACTIVITY CHART 01

01.01.09
8 MEASURABLE PARAMETER 01

01.01.09
9 CALANDAR OF RETURNS 01

01.01.09
10 MONTHLY REPORT 01
01.01.09
11 CODE ALLOCATION SHEET 01

01.01.09
12 LIST OF RECORDS 01
01.01.09
13 ORGANIZATIONAL CHART 01

01.01.09
14 PROCESS FLOW CHART 01

01.01.09
15 CHANGES TO PROCESS MANUAL 01

01.01.09
16 ANNEXURE – “A” 01

01.01.09
ANNEXURE – “B” 03
17
SR.DFM’s Office, West Central Railway, Bhopal Process Manual

MEASURABLE PARAMETER:

Activity Period for Disposal


To complete the inspection of all units as per the approved
programme in the same financial year and issue inspection reports.
1 Annual Inspection Programme
Annual Inspection programme should be got approved before 31st
march every year.
Associate Accounts vetting and scrutinize the remarks of

2 Disposal of Draft Para Executive = 1 week. And over all period disposal of Draft
para is 8 weeks from the date of receipt from Audit.
Concerned executives should submit reply as early as possible.
Sr.DFM office to verify the same and forward to Audit quickly. If
Disposal of part I Audit notes and Inspection
3
reports and special letters required Bipartite / Tripartite meetings may be done regularly to
close the report.
To be replied by Concerned Branch Officer as early as possible.
Disposal of Part II Audit notes, RAN,
4
Inspection reports Sr.DFM office to verify the same and forward to Audit quickly
To be reviewed at the time of next inspection of same unit, verify
the action taken and close the same. The Inspection report is issued
5 Accounts Inspection reports within 20 working days time from the date of inspection.

To be submitted in the first week of every month or the date fixed


6 All periodical returns
by Head quarter.

7 Issue of Accounts Inspection Report Within 20 working days time from the date of inspection of unit.

IMPORTANT NOTE: It is to be ensured by the concerned section in charge that the updating of system is take place
within barest minimum time and any revision, on account of new rule/instruction from Rly Bd/ HQ’s warrants
revision of process manual, is taken place within one week of receipt of letter. However, to ensue the task “On
EVERY 1ST DAY OF THE MONTH THE SECTIN INCHARGE WILL REVIEW THE SYSTEM AND ENSURE THAT ALL
UPDATION /REVISION DURING THE MONTH ARE TAKEN PLACE.”

INSP SECTION CHAPTER 08 PAGE 1 OF 1 01.01.09 REV 00 APPROVED BY______


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

CALENDAR OF RETURNS
SR Name of Returns Period Due date of To be
submitted
NO. submission
to

A Monthly Returns

2 Monthly Progress Report of Monthly By 8th of FA&CAO


following month
o/s Pt.1 Audit References (I-AUDIT)
B QUARTERLY RETURNS
1 Quarterly Progress Report of Quarterly By 8th of FA&CAO
following month
o/s Pt.1 Audit References (I-AUDIT)
of Qtr.

2 Quarterly Progress Report of Quarterly By 8th of FA&CAO


following month
o/s Railway Board’s Inspection (I-AUDIT)
of Qtr
Reports
C Half Yearly Returns
1 Half-yearly arrears reports of Half For HYE Dec. by FA&CAO
th
8 JAN for HYE.
o/s Audit References, Rly Bd’s Yearly (I-AUDIT)
th
JUN by 8 of July
Inspection Reports etc.
2 Recoveries at the instance of Half For HYE Sept. by FA&CAO
th
15 OCT for HYE.
Audit Yearly (I-AUDIT)
MAR by 15th of
APRIL

D Annual Returns

1 Recoveries at the instance of Annual By 10th July of FA&CAO


Audit next following (I-AUDIT)
year

Ref: F.A. & C.A.O./W.C.R./JBP’S Letter No. HQ/ACS/GA/I.AUDIT/REPORTS/2004 Dt


20.9.2009.

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SR.DFM’s Office, West Central Railway, Bhopal Process Maunual

ABBREVIATIONS
Sr.
No. Term Expansion
1. AA Account Assistant
2. ADFM Astt. Divisional Finance Manager
3. AN Audit Note
4. CWS Carriage and Wagon Supervisor
5. DFM Divisional Finance Manager
6. DP Draft Para
7. Engg. Engineering
8. FA&CAO Financial Advisor and Chief Accounts Officer
9. GM General Manager
10. H.S.D. Oil High Speed Diesel Oil
11. HQ Head Quarter
12. L.F. Loco Forman
13. P&T Post and Telegraph
14. P.T.O. Privilege Ticket Order
15. R.M.C. Note Railway Material Consignment Note
16. R.R. Railway Receipt.
17. RAN Rough Audit Note
18. RPF Railway Protection Force
19. SR.DFM Senior Divisional Finance Manager
20. SSO Senior Section Officer

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INSP Section CHPATER 1 Page 1 of 1 Rev:00 01.01.09 Approved by _______________


SR.DFM'S Office, West Central Railway, Bhopal FORM

MONTHLY REPORT
Month:

Monthly Processed Status


Target Period of
S. No. Activity Processed Remarks, if any
Clearing Total Processe
not in
Recd d In Time
time

Process of Part I Audit Within 7 days after


1 references / Special receipt from Audit
Letters

Issue of Accounts
Within 15 days after
2 Inspection Reports
inspectin of unit
(Part I and Part II)

ISSUE OFAUDIT
INSPECTION Within 7 days after
3
REPORTS (PT. I & PT. receipt from Audit
II)

SSO - INSP ADFM


(Name & Seal) (Name & Seal)

INSP SEC Chapter :10 REV:00 1 of 1 01.01.09 Page No.____


SR.DFM'S Office, West Central Railway, Bhopal FORM

INSP SEC Chapter :10 REV:00 2 of 1 01.01.09 Page No.____


Sr.DFM'S Office , West Central Railway, Bhopal Process Manual

INSPECTION SECTION CODE ALLOCATION SHEET

S.No. Name Designation Alloted Code


1 P.N.KATARE S.S.O A1

2 MAYAPATI MISHRA A.A. B1

3 HEMANT A.A. B2

4 SHIV RAM MEENA A.A. B3

Approved By
(Name & Seal)

INSP SEC: Chapter 11 REV:00 PAGE 1 OF 1 01.01.09 Approved By____________


Sr.DFM'S Office , West Central Railway, Bhopal Process Manual

INSP SEC: Chapter 11 REV:00 PAGE 2 OF 1 01.01.09 Approved By____________


Sr.DFM'S OFFICE, West Central Railway, Bhopal Process Manual

LIST OF RECORDS
Section: ____________________
INSPECTION

S. No. Record Name Format No., if any Records Custodian Retention Period

1 Monthly progress report SO (INSP) 10 Years


2 Bi-monthly progress report SO (INSP) 10 Years
3 Quarterly progress report SO (INSP) 10 Years
4 Half-yearly arrears report A-125 SO (INSP) 10 Years
5 Regsister of recoveries at the instance of SO (INSP) 10 Years
Audit
6 GM/FA & CAO’s letters SO (INSP) 10 Years
7 Audit inspection programme SO (INSP) 10 Years
8 Notes on part I audit cases SO (INSP) 10 Years
9 Accounts inspection programme SO (INSP) 10 Years
10 Rough Audit notes SO (INSP) 10 Years
11 Audit inspection reports Part I- SO (INSP) Till finalisation
12 Audit inspection reports Part II SO (INSP) Till finalisation
13 Audit notes Part I SO (INSP)
14 Draft paras SO (INSP) Till finalisation
15 Line notes of HQrs officers SO (INSP) Till finalisation
16 Special Letters SO (INSP) Till finalisation
17 Policy file SO (INSP) Till finalisation

NOTE: Before destruction of above records (in case of retention period is over), SR.DFM ‘S prior approval will be required. Further, a circular may
be issued to all concern asking them to withdraw any record from destruction if required by them for any purpose.

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Sr.DFM's Office, West Central Railway, Bhopal Process Manual

LIST OF RECORDS

S. Record NO. Format No.,


Record Name Records Custodian Retention Period
No. if any
1 Progress Report File AC/BPL/INSP/PRGS/1 SSO (INSP) 10 Years
2 RLY BD/HQ Corrs. File AC/BPL/INSP/HQ/2 SSO (INSP) 10 Years
3 A/CS Insp. Programme File AC/BPL/INSP/PRO/3 SSO (INSP) 10 Years
4 Audit Returned File AC/BPL/INSP/AR/4 SSO (INSP) 10 Years
5 Audit Corrs. File AC/BPL/INSP/Audit/Corr/5 SSO (INSP) 10 Years
6 Gen Corrs.File AC/BPL/INSP.Corrs./6 SSO (INSP) 10 Years
7 Policy File AC/BPL/INSP/POL/7 SSO (INSP) 10 Years
8 Line Notes/IR of HQ Office AC/BPL/INSP/HQINSP/8 SSO (INSP) 10 Years
9 Insp.Programe Register AC/BPL/INSP PR/9 SSO (INSP) 10 Years
10 A/C Insp. Issue Register AC/BPL/INSP/ISSUE/10 SSO (INSP) 10 Years

NOTE: Before destruction of above records (in case of retention period is over), SR.DFM ‘S prior approval will be required. Further, a
circular may be issued to all concern asking them to withdraw any record from destruction if required by them for any purpose.

INSP SECTION CHAPTER 12 Page 1 Of 1


11-11-09
Rev: 01 Approved By______
SR.DFM'S OFFICE , WEST CENTRAL RAILWAY BHOPAL PROCESS MANUAL

ORGANIZATIONAL CHART

ADFM

SSO (INSP.)

AA AA AA
(A1) (A2) (A3)

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

INSPECTION SECTION PROCESS FLOW CHART

Draft Inspection Issue of Audit Report to


Programme Branch Officer/ Executive

F.A. &. C.A.O’s Verification of


Approval remarks received from
Executive

Forward Remarks to Audit


Inspection of Units

Closure of Report or back


Issue of Reports reference by Audit.

Verification of Remarks Reply from Executive

Closure of Report Verification in Accounts


& forward to Audit

Closure Advice to Closure of Report by Audit.


unit concerned

INSP SECTION CHAPTER 14 REV 00 PAGE 1 OF 1 01.01.09 Approved By______________


SR.DFM’S OFFICE WEST CENTRAL RLY BHOPAL Process Manual

RESPONSIBILITY AND AUTHORITY OF INSPECTION SECTION


SUPERVISOR Staff Code &
SR NO. ACTIVITY AUTHORITY
CODE Name
Inspection of various offices in BHOPAL Chapter XVII of Accounts Code
Division, Issue of reports, review of Volume I & Inspection
1 A1 B1,B2,B3
reply & closure of reports. programme approved by FA &
CAO
To deal with all audit reports Pt I, II, Finance Code Volume I, chapter
RAN and Draft Paras ,Special Letters, IX
2 issued by Divisional Audit Officer A1 B2,B3

To submit monthly, Qtrly, Half yearly As per the instructions issued


and Annual returns to HQrs, Effy by FA & CAO (I/Au), Effy
3 section in the first week of every A1 B3
month.
To Verify all settlement cases & record Audit and Accounts Insp.
4 recoveries outstanding if any brought Reports A1 B3
out in Insp. Reports
To submit position of outstanding audit As per the instructions of Sr
reports, accounts inspection reports to DFM
5 Sr. DFM as & when called A1

To attend tender opening in various As per the instructions of


6 offices Administration. A1

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

CHANGES TO PROCESS MANUAL

Amendment New
Date Section Particulars of Amendment
No. Rev No.

01 11-11-09 12 List of Records 01

INSP SECTION CHAPTER 16 REV 01 PAGE 1 OF 1 01.01.09 Approved By_______


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual

Standards of financial propriety

These rules also known as Canon Of Financial Propriety are the guiding
principals to be followed while incurring any expenditure from the Public Fund ,
therefore due regard must be paid to these golden principals as given below
(1) The expenditure should not prima facie be more than the occasion
demands, and that every Government servant should exercise the
same vigilance in respect of expenditure incurred from public moneys
as a person of ordinary prudence would exercise in respect of the
expenditure of his own money.
(2) No authority should exercise its powers of sanctioning expenditure to
pass an order, which will be directly, or indirectly to its own
advantage.
(3) Public money should not be utilized for the benefit of a particular
person or section of the community unless—
(I) The amount of expenditure involved is insignificant; or
(II) A claim for the amount could be enforced in a court of law; or
(III) The expenditure is in pursuance of a recognized policy or
custom.
(4) The amount of allowances, such as traveling allowances, granted to
meet expenditure of a particular type, should be so regulated that the
allowances are not on the whole sources of profit to the recipients
- (116 FI)

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INTRODUCTION:

Local inspection of executive offices by Accounts Inspection team at


periodical intervals, is primarily aimed at ensuring that the record and
accountal of work is maintained in the prescribed pattern similarly returns,
vouchers etc. submitted by these offices to the Accounts Office have been
correctly prepared, and that all initial records which do not come to
accounts office but that they can be produced on which such returns,
vouchers, etc., are based, have been maintained efficiently in such a
manner to produce as a reliable evidence in the Court of Law, shall an
occasion arise.
It is, therefore, essential that these initial records, which form
the basis for the claims, etc., submitted to the Accounts office, shall be
subjected to a thorough and critical examination during local inspections
and linked with the vouchers/returns etc. to prove the authenticity and
correctness of the latter. Any detailed check during these inspections of
the documents and vouchers, which come under the normal routine check
of the Accounts Office, shall, be avoided, as it will mean only an
unnecessary duplication of work. It is necessary that the examination of
the books, records, etc. shall be conducted thoroughly and very critically,
so that any defects in the procedure followed in the maintenance of the
initial records either due to ignorance or owing to wrong application of the
extant orders, or deliberately are brought to light and rectified. These
inspections are also intended to afford an opportunity to the Executive to
get their points of doubt in accounts matter and the doubts are cleared on
the spot. With this end in view, the inspecting staff shall play the role of
friendly critics and shall consequently avoid unnecessary and frivolous
objections, concentrating only on major issues and lapses.

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

Sources and References:


All the Codes and Manuals issued by Railway Board have
Presidential sanction, therefore; any violation of these provisions would be treated
as major irregularity. The circulars issued by Railway Board are extension of codal
provisions & they bear the same sanctity. In addition to the above documents,
there are Manuals, which have been issued on particular subject by Zonal
Headquarters with the approval of FA&CAO. Some of the specific instructions
contained in these manuals may vary from Zone to Zone.

The difference between Codes and Manuals is that the codes give
rulings and authority i.e. what to do and what not to do, whereas the Manuals
provide the procedure of doing things. In this Process of framing document on
inspection Section, efforts have been made to incorporate vital aspects of Codes
and at the same time standards and targets have also been incorporated.
The working of Inspection section is guided by the following documents:
• Indian Railway Accounts Code, part I
• Indian Railway Engineering Code,
• Indian Railway Stores Code, Part I and Part II
• Indian Railway Establishment Code
• Engineering Code
• Railway Board’s circulars,
• Mechanical Code
• Instruction/guide lines issued from time to time by Railway Board.
• Instruction issued by HQ.
• Inspection manuals issued by other Railways
In this document instead of reproducing details from codes and
manuals the relevant Para has been quoted in abbreviated form. For
example 1335 A1 means paragraph 35 of Chapter XIII of the Indian
Railway Code for the Accounts Department Volume-I.

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

SCOPE OF WORK :

The role of Inspection section / Bhopal is to carry out:

• Inspection of various offices of BHOPAL Division as approved by FA&CAO and


subsequently Issue of inspection reports, review of replies & closure of reports.
• To deal with all reports issued by; Divisional Audit Officer: -
(A) Part II Audit Inspection Report
(B) Part II Audit Note
(C) Special Letters, Draft Para, Part I Audit Inspection Report, Rough Audit Note
(RAN) & Part I Audit Note
• To submit monthly, Qtrly, Half yearly and Annual returns to HQrs, in the first week
of every month.
• To verify all settlement cases and record outstanding recoveries, if any
• Monthly submission of the outstanding audit reports, accounts inspection reports to
Sr. DFM
• To forward Inspection notes, Line notes of HQrs Officers and Railway Board
Inspection Reports to concerned divisional officers, and obtains remarks, verify these
and close the same if remarks are in order.
• Correspondence related with RTI, HQ, and DRM etc.
• Organize tri-partite meetings on Inspection references.

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

SECTIONAL PROCEDURE

1.0) NECESSITY FOR INSPECTIONS:


i) Though in certain cases original records are submitted, a large number of
accounts and supporting documents submitted for internal check are not
original records, as such the internal check conducted in the Accounts Office is
largely dependent for its efficiency on the degree of care exercised by
departmental authorities over the accuracy of the original records.
ii). It is, therefore, necessary to review the original records as submitted to
Accounts and also to test the degree of care exercised by the executive officers
over the accuracy of such records and to see that they are maintained properly in
the prescribed forms.
iii). Opportunity is also taken at this time to test check such Accounts, Vouchers,
etc. which are not coming under the purview of internal check or cannot be
checked adequately except at a local inspection.
iv). Inspection of executive offices at Head Quarters and Divisions shall ensure the
accuracy and authenticity of the transactions rendered by the executives.

2.0) RESPONSIBILITIES OF ACCOUNT’S OFFICERS: The Divisional Accounts


Offices are responsible for:-
i) Inspection of all offices under their Accounts control.
ii) Inspection of Railway Schools within their jurisdiction.
iii) Inspection of all catering units falling within their jurisdiction.
iv) Check of Book Stall, Platform Stalls at stations.
v) Check of OT/NDA claims at Stations and other offices. Accounts team is
mandated to ask for any record from any office under their accounting control.
They have also the mandate to seize the record with prescribed procedure it
embezzlement or a serious lapse is suspected in the accounts.

3.0) PERIODICITY OF INSPECTION


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

ii) While inspecting Divisional office, one sub-office in the case of engineering
expenditure and at least two subordinate offices not in charge of a Gazetted
officer shall also be inspected simultaneously.
iii) As far as possible all the sub-divisional offices in a division shall be inspected
within the course of two years.
iv) The offices, where there are not many transactions by way of miscellaneous cash,
issue of passes, PTOs etc. may be inspected once in 3 years to have.
a) A general review of the procedure relating to initial accounts of receipts
and expenditure of cash and stores with a view to making helpful
suggestions towards elimination of useless returns, redundancy of any

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kind and wasteful methods.


b) To assist the departmental officers in the matters affecting accounts,
budget or the financial regularity of transactions.
The inspecting staff shall initial with date on all registers, documents etc. (Except
service cards) examined by them as a token of their check.

4.0) DRAWING UP OF ANNUAL INSPECTION PROGRAMME FOR ENSURING YEAR:


The Annual Inspection Programme has to be drawn up in terms of Para 1712 A1
for obtaining FA&CAO’s approval before the starting of the financial year. This
Annual Inspection Programme has to be drawn up in consultation with
associated Audit office with regard to provisions of Para 1706 and 1709 A1. The
following details should be mentioned on the programme.
1. Name of Executive offices/Sub-Ordinate offices.
2. Periodicity of Inspection.
3. Date when the unit was last inspected by Audit/Accounts office,
4. When inspections is proposed to be done during the financial year.
5. No. of Days and man days programmed for each inspection with the total No. of
days and man days required during the entire year for inspection purpose.
6. All units due for inspections may be segregated between the categories as “ Major
unit/Minor unit.” And a separate inspection scheduled for each category may be
submitted.
7. Detailed analysis may be done to furnish the following information:-
(i) Joining time required for the inspection during the financial year.
(ii) The remaining No. of days available for inspection.
(iii) No. of holidays/Sundays and CL/RH etc.
8. The copy of holiday’s list for the year of Bhopal division is also to be furnished
with the programme.

Current position of compliance of approved annual inspection programme for the


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

A certificate starting that all the units, the inspection of which is due during the
ensuring year are included in the programme without any omissions is also to be
furnished.
Ref:- FA&CAO/I.Au/JBP letter no. HQ/ACS/GA/INSP/001/2009-10 Dated 04-03-
2009

NOTE:- The complete list of various offices on Bhopal division is annexed as Annexure ‘A’.
Based on above guidelines and keeping in view the inspection Schedule of Audit
department inspection programme of Accounts office has been finalized and
shown as Annexure –‘B’.

FURTHER DISPOSAL OF INSPECTION REPORTS.


Based on the findings observed during inspections, Reports are prepared
and submitted to ADFM for approval. After getting the approval of ADFM, the
inspection reports are issued to the officer unit in-charge of unit inspected. On
receipt, of the replies the remarks are verified for their genuineness and
appropriateness and the matter is closed if found acceptable. However, in case
the remarks are found inappropriate and unsatisfactory, the concerned unit in-
charge is written back for corrective actions. On receipt of further reply, the
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report is closed with the approval of Accounts Officer. The Inspection report is
issued within 20 working days time from the date of inspection.
During the course of inspection, efforts are made to review old outstanding
Inspection reports of Accounts or Audit department, if any, and the concerned
Executive is impressed upon for submission of remarks /corrective action at the
earliest.
On receipt, the remarks are verified & forwarded to Audit if found suitable,
otherwise written back to the concerned branch officer for submission of details
of corrective actions and subsequent appropriate remarks. In addition, reminders
at regular intervals are issued to concerned branch officers for submission of
remarks in the matter of outstanding current and old audit references. Tripartite
meetings are arranged to finalize Audit reports/Special letters. At the same time,
various periodical returns are submitted to the HQ with the vetting being done by
Audit department, if necessary.
To verify all settlement cases to record recoveries outstanding and
detected during Inspection.

5.0) Check Lists for Inspection:

Inspection of various Executive officers is an important aspect of work for


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

• The Receipt and issue are matching and confirms to the real state of affairs.
• The liabilities and Assets are matching.
• The Book Balance and Journal Balance correspond to each other.
• The allowance claims and privileges are entertained within the prescribed limit.
• The work is executed as per authorization.
These checks are given below illustrative and not exhaustive.

LIST OF ITEMS COMMON TO ALL OFFICES NON-PERSONNEL.

1.) Imprest cash including Spl. Imprest Account.


2.) Postal stamps account.
3.) Franking Machine Account.
4.) Misc. cash receipts and remittances.
5.) Pay orders.
6.) Money value books and machine numbered books.
7.) Register of Agreements, and review of Tenders and contracts.
8.) Review of Agreements.
9.) Stationery books and forms.
10.) Consumable Stores Account.
11.) Clothing Account.
12.) Dead Stock and Tools and Plants.
13.) R.M.C/Credit Notes issued for carriage of Rly. Materials.
14.) History Book of vehicles, typewriters etc.
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15.) Review of Inspection Notes of PHODs/ HODs.


16.) Review of Outstanding Audit and Accounts Inspection Reports.
17.) Review of Bills Register.
18.) Review of Telephone bills.
19.) Review of Log Book.
20.) Review of Monthly Progress report/PCDO to Rly. Bd. etc.
21.) Review of Stores ledger.
22.) Review of Progress of expenditure.
23.) Write-off and sanctions.
24.) Register of Library Books, Receipts, Accountal and issues.
25.) Review of Implementation of Rly. Bd's orders.
POINTS REQUIRED TO BE SEEN ON EACH OF THE ABOVE QUOTED
ITEMS ARE GIVEN BELOW:
1). IMPREST CASH:
i). The cash balance on hand to be verified by actual count and tallied with
the book balance, Certificate to this effect should be recorded in the
Imprest register under the initial of the inspecting official.
ii). Proper arrangements exist for the safe custody of the cash.
iii). Prescribed Imprest register is maintained in the prescribed form, and the
amounts spent are recorded correctly. (G.SIF/E.1411)
iv). Recoupment is made periodically.
v). The Imprest Account is balanced and closed daily.
vi). Amount spent from Imprest are correctly payable and authorised by the
Gazetted Officer.
vii). The sanctioned amount is not in excess of requirement, and a justification
exists. In case Recoupment is made occasionally, reduction of Imprest is
to be suggested.
viii). Special Imprest sanctioned for a specific purposes are closed immediately
duly surrendering the balance amount after the special event is over.
ix). Amount spent from special Imprest are spent only for the specific purpose
for which it was sanctioned.
x). Separate Imprest Account is maintained and not mixed with general
Imprest, if the Imprest is sanctioned for special purpose.

2). POSTAL STAMPS ACCOUNT:


i). Service stamps on hand to be verified by actual count and tally the same
with the balance as per Register of Stamp Account.
ii). It should be seen that ordinary postal stamps are not used and only
service stamps are used.
iii). Recoupments of service stamps are properly accounted in the postal
stamps account.
iv). Full particulars are given in the postal account register for the usage of
service stamps.
v). The postal stamp account is balanced daily/periodically, and initial of the
in charge/supervisor is obtained in the Resister of Stamps Account.
vi). If the postal stamps are used for Registered articles etc., necessary
acknowledgements obtained from the postal authorities are pasted in the
Postal Stamps Register.
vii). Test check of the entries in the register is made to ensure that the stamps
have been used for office use only.

3). FRANKING MACHINE ACCOUNT:


i). Proper sealing of Franking Machine is to be checked.
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ii). Opening and closing Nos. are entered in the stamps register.
iii). Proper account for usage of stamps from the Franking Machine is
recorded in the stamps register.
iv). When stamps are recouped from Postal Department, necessary entries are
made in the register (opening and closing numbers)
v). Rebate @ 3% for the usage of Franking Machine is claimed from the Postal
Department periodically, and the amount realised is accounted for in the
Railway's account.

4). MISCELLANEOUS CASH RECEIPT AND REMITTANCES:


i). The office is authorised to receive the cash, and proper receipt is issued
for all receipts of cash.
ii). The receipt books have been kept under lock and key in the personnel
custody of the official responsible.
iii). The amount received is remitted to the cash office or to the nearest station
without any avoidable delay and the amount is remitted correctly.
iv). Proper Acknowledgment is obtained and pasted to the counter foil.
v). Proper account is maintained for the receipt and deposit of cash.
vi). Necessary returns are submitted to the Accounts Office monthly.
vii). Correct allocation is furnished on all the vouchers.

5). PAY ORDERS:


i). The Pay Orders issued by the office are checked to see that the drawl of
amount is justified and sanction of the competent authority is obtained.
ii). Pay order book is properly maintained and necessary certificate is
recorded to the effect that all the folios are checked and found correct.
iii). All the pay orders are stamped with seal of the office.
iv). Pay order books are kept under lock and key.
v). Separate register is maintained for issue of pay orders.
vi). After the amount is drawn, necessary vouchers are sent to the Accounts
Office in time.
vii). Amount drawn through pay order is spent immediately and only for the
purpose for which it is drawn.

6). MONEY VALUE BOOKS AND MACHINE NUMBERED BOOKS:


i). Proper Accountal and receipt of the books is to be checked with the
memos issued by the Press/Forms Depot.
ii). Proper arrangements exist for safe custody of the books.
iii). The numbers of unused books agree with the entries in the stock register.
iv). All issues are properly acknowledged.
v). Obsolete or excess to requirements are not stocked.
vi). Prompt action is taken in the event of loss/theft of money value books/or
folios, viz. Gazetted notification, report to the Police, etc. to avoid
fraudulent usage of the Money Value Books.

6) REGISTER OF AGREEMENTS:
i). A Register is maintained in the prescribed form.
ii). All agreements entered into with the contractors are entered in the
register.
iii). Complete details viz. name of the work, Agt. No., and date, letter of
acceptance of the agreement, total value of the Agt./contract, Date of
commencement, due dt. for completion, particulars of EMD/SD, extension
granted if any, special remarks if any etc., are furnished.
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iv). The register is periodically reviewed and initialed in the inspection sheet.

7) TENDERS AND CONTRACT:


i). Tenders have been called for with the sanction of the competent authority.
ii). Accounts concurrence is obtained before calling for Tenders (in the case of
Single, Limited and Special. Limited Tenders and all other cases where
necessary).
iii). Tenders have been called for, only after preparation of Estimate, sanction
of Indents (For supply), drawings and plans etc.,
iv). A register is maintained showing all particulars of tenders received.
v). In case of sale of Tender Forms, proper account is maintained for receipt,
accountal and remittance of cash.
vi). Tenders have been called for well in advance of the date of commencement
of work.
vii). All relevant rules and procedures have been followed for calling, opening,
and finalisation of tenders.
viii). Terms and conditions stipulated in the Agreement/Contract are as per
extant orders.
ix). TCP has been formed as per the provisions of S.O.P. / Rly. Bd.
Instructions.
x). There is no deviation from the standard conditions, special conditions, if
any, and have the prior approval of the competent authority.
xi). The lowest tenders only have been accepted.
xii). Negotiations if conducted are as per latest instructions on this subject i.e.
only with the lowest Tenderer etc.,

9) REVIEW OF AGREEMENTS:
i). Agreements Register should be checked to ensure that all details are
furnished,
ii). Some of the agreements should be checked with reference to
a). Progress of the work,
b). Supply of Steel, Cement is as per the Agmt. /Schedules.
c). Test check the measurements recorded and bills claimed.
d). There is no delay in progress of the work/supply.
e). Proper action has been taken against the Agency in case of delay.
f). Final Bills are prepared without delay on completion of the work
and final Measurements are taken. If there is undue delay in
preferring final bills, the reasons for the delay should be analysed.
g). All records connected with execution of the work are maintained
correctly.
h). The claims preferred are only to the extent the works are
executed/supplies made.
i). Variations to the execution of work or supply of items are
regularised with the sanctions of the competent authority as per
rules.
j). CR is drawn at the earliest, booking the necessary expenditure
towards material & establishment.

10) STATIONERY BOOKS AND FORMS:


i). Necessary Registers are maintained properly for receipts and issues.
ii). There are no abnormal issues.
iii). Issue of "Xerox" paper etc. proper account is maintained separately.
iv). Stationery purchased locally in case of urgent need is done after obtaining
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proper sanction and as per provisions of SOP.


v). Computer Stationery is purchased only after necessary sanction is
obtained from the competent authority, and the purchase is made as per
the provisions of SOP (Part 'C’) and extant rules on this subject.

11) CONSUMABLE STORES ACCOUNT:


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

12) CLOTHING ACCOUNT:


i). Requisitions are prepared in accordance with dress regulations.
ii). Proper records are maintained for all receipts and issues and issues are
made with clear signature/acknowledgment.
iii). The receipts are checked with Issue Notes.
iv). Winter uniforms are issued as per the eligibility criteria, and as per
periodicity.

13) DEAD STOCK - TOOLS AND PLANT:


i). The Dead Stock Register is maintained in prescribed form showing the
purchase reference, P.O. No. etc.,
ii). The receipts, Issues and balances are correctly posted.
iii). Receipts should be checked with the firms Invoice, Issue Notes etc.
iv). The Day Book of Receipts should be checked to see that all Tools and
Plants received have been accounted for in the Tools and Plant Register.
v). Proper arrangements exist for accountal and safe custody of the Dead
Stock items kept in stock.
vi). All items available/received are properly and correctly taken in the Dead
Stock Account.
vii). Proper nomenclature, price list No, measurements etc. are indicated
against each item.
viii). Separate Folios are kept distinctly for items like, PCs, VCR, TVs, Cameras,
and Audio Visual equipments, Fridge etc.
ix). Departmental Stock verification has been done periodically and certificate
recorded against each item.
x). Un-serviceable Tools and Plant are condemned under proper authority
and sent to stores Depot. Expeditiously.
xi). Suitable reference furnished in the Dead Stock Register for the Articles
sent to scrap Depot, Transfer to other units etc.

14) RAILWAY MATERIAL CONSIGNMENT NOTE (RMC NOTES) AND


CREDIT NOTES:
i). RMC Notes are issued only for the transport of Railway Materials and the
materials are for a bonafide Rly. Purpose.
ii). Credit Notes are issued only when freight charges are required to be borne
by the Railway as per the purchase order.
iii). Where credit notes are issued towards wharf age or demurrage charges, it
should be seen the circumstances under which the charges incurred and
sanction of the competent authority is obtained for issue of credit notes.
iv). If the charges are incurred due to delay in unloading, want of staff,
negligence of staff etc., the matter should be reported to the concerned
responsible official for action against the staff.
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15) HISTORY BOOKS OF VEHICLES, COMPUTERS/ TYPE WRITERS ETC :


i). Complete History of the Vehicle, viz. firm name, cost of the vehicle/item,
date of purchase, models etc. are furnished in the Register.
ii). A detail of spare parts supplied, free guarantee period etc. is indicated.
iii). Expenditure incurred for repairs, overhauls and spare parts are posted
correctly in the register and the monetary limit prescribed for various
factors are not increased.
iv). In the case of new machines, free servicing if any agreed to by the suppliers
is availed of.
v). Released unserviceable spare parts after repair are accounted and sent to
the scrap depot under DS8.

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


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

17) REVIEW OF OUTSTANDING AUDIT AND ACCOUNTS INSPECTION


REPORTS:
i). Outstanding Audit and Accounts inspection Reports are properly attended
to and the mistakes/irregularities have been rectified.
ii). In the case of Pt. II Accounts Reports, the finality of the action rests with
the Executive Units where the inspection was carried out. Action taken on
the Part.II reports should be reviewed during inspection.
iii). In the case of Stock Verification reports and TIAs reports, it is to be seen
and reported that any DAR case is pending against any employee or
against the unit due to Stock Verification Reports or TIAs reports.
iv). It is to be enquired and reported that, is there any vigilance enquiries
dealing with financial matters are pending.

18) REVIEW OF BILLS REGISTER:


i). A register to record the bills received in the office is maintained and
postings made correctly.
ii). Postings are made as and when they are received.
iii). Bills have been passed expeditiously and the outstanding on hand is not
heavy.
iv). Paid bills for the month selected should be traced in the bills register, and
checked.
v). The register is put up to the controlling officer periodically for review.

19) REVIEW OF TELEHPONE BILLS:


i). A separate Register is maintained to indicate the receipt of Telephone bills
with separate folios for office and residential phones.
ii). All the Bills passed are properly entered, there is no unusual/abnormal
charges passed for payment. In such case, the reasons for such payment
should be reviewed.
iii). In the case of residential DOT phones, the excess amount than
permissible has been recovered.
iv). Charges for Private Calls (Trunk Calls) etc. have been recovered from the
officer concerned.

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20) REVIEW OF LOG BOOK:


i). A general review of the Log Book pertaining to all department vehicles with
reference to the movement of the 4 wheelers and 2 wheelers (RPF) and
entries made therein.
ii). Whether, the journeys performed are systematically and correctly recorded
with time, date, and kms. Travelled, and signature of the officer travelled.
iii). In case of private trip, it has to be checked whether necessary charges
have been billed and collected.
iv). Consumption of petrol to commensurate with the kms. Recorded in the
Log Book.
v). Petrol and other consumable oil drawn are recorded in the LOG Book
systematically.

21) REVIEW OF MONTHLY PROGRESS REPORT - MPR/PCDO:


i). It has to be seen whether, the activities/ progress indicated in the report
are correct.
ii). Arrears if any reflected in the report are factually correct.
iii). Reasons for not achieving the target are factual and correct.
iv). In case of MPR on execution of works, test check of some of the items,
indicated in the report should be reviewed with the connected records.

22) REVIEW OF STORES LEDGER:


i). Separate ledgers are maintained for Cl. I, Cl. II consumable stores, empties
etc.,
ii). Postings are up to date and test checked with connected records like
DMTR etc. to ensure the correctness of the postings.
iii). Proper records are maintained for receipt and issues.
iv). Balances are arrived correctly.
v). Stocks are not held unnecessarily.
vi). In case of overstock items, proper action is taken for disposal.

23) REVIEW OF PROGRESS OF EXPENDITURE:


i). Proper records are maintained for the incurrence of expenditure.
ii). Expenditure incurred is sanctioned and same is as per the provisions
made in the Budget.
iii). Debit/Credit relating to the year is booked in the same year's account.
iv). Adequate action is taken to obtain all Dr./Cr. and to account for in the
same year.
v). All adjustments, AMs, Transfers are accounted without delay.
vi). All expenditure are properly allocated and brought into the Account.

24) WRITE-OFF/SANCTIONS:
i). Proper records are maintained for all sanctions and write-off.
ii). Write-off sanctions have been obtained as per the provisions of SOP, Codal
provisions etc.
iii). Finance concurrence has been obtained, wherever necessary.
iv). Staff responsibility has been fixed, for the write-off proposals involving loss
for which Rly. Employees are responsible.
v). Preventive measures are taken to avoid recurrence of loss/theft etc., for
which write-off proposal is obtained.

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25) LIBRARY BOOKS:


i). A register is maintained for receipt and issues.
ii). Proper accountal of the books is checked with reference to receipt
vouchers.
iii). Books issued to the officials are returned within the prescribed time.
iv). Books purchased for the library are as per the requirement, and guide
lines issued by Railway Board.
v). Books, which are not required for day to day functioning, are not
purchased.
vi). Books purchased for library are as per the monetary limits prescribed and
had the sanction.
vii). In case of books lost/not returned, proper action is taken to recover the
cost etc.

26) REVIEW OF IMPLEMENTATION OF RAILWAY BOARD ORDERS,


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

LIST OF PERSONNNEL ITEMS COMMON TO ALL OFFICES AND POINTS


REQUIRED TO BE SEEN ON EACH:

1) ATTENDANCE REGISTER:
i) Prescribed Register is maintained, with names and designations recorded
correctly.
ii) Staff have signed in the attendance Register at the prescribed time and
counter signed by the Controlling Officer.
iii) Staff attending late has signed only in the late attendance and not in the
regular attendance Register.
iv) All the absenteeism’s are properly regularised.
v) Late attendance is properly reviewed and suitable action taken for
condonation/debiting casual leave.
vi) No staff remains unauthorised absence for long period and if any such
cases, proper action is initiated against the employee.
vii) Attendance Register is test checked with leave account, C.L. card etc. to
verify the correctness of postings of leave/leave availed.
viii) Test checked with salary bills to ensure that wages are drawn only for the
duty period, and absence during assumed attendance are regularised
properly.

2) SCALE CHECK:
i). Proper Register/Record is maintained to indicate the sanctioned posts,
category wise.
ii). Checked with Attendance, Pay Bills etc. to see that the posts operated are
as per the sanction strength
iii). Book of sanction reference is indicated against each Department against
the posts sanctioned.
iv). No posts are operated in excess to the sanctioned strength or without
sanction
v). In case of excess operation, action has been taken to regularise the posts.
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3) LIMITED CURRENCY REGISTER:


i). Proper Register is maintained and complete details viz. category, period of
sanction etc. is recorded.
ii). The date/dates from which the posts are being operated to be indicated
clearly.
iii). No posts are operated beyond the period of currency unless it is extended
by the competent authority.

4) SERVICE REGISTERS:
i). Service Registers have been opened for all the employees without delay
and necessary Medical Certificate attached.
ii). All required details have been filled correctly.
iii). Necessary Thumb impressions have been obtained and certified by
FPE/Responsible official.
iv). Service records are kept in safe custody.
v). The Date of Birth recorded in the S.R. agrees with Medical Certificate,
School Certificate etc.
vi). All necessary entries viz., increment, transfer, promotion, fixation of pay,
option forms for PF, CGIS, sanction reference of HBA, Scooter Advance
etc. are recorded correctly and attested by Gazetted Official.
vii). Qualifying service is recorded every year and period not qualified for
pensionable service is recorded correctly.
viii). In case of employees, for whom DAR action have been initiated, suitable
entries in the S.R. duly indicating the punishment penalty, suspension
etc. entered clearly and duly quoting the orders of the competent
authority.
ix). That the Service Records are periodically reviewed, by the controlling
officials.
x). In respect of SC, ST and BC candidates’ authenticated documentary proof
should be available in the SR/Personal File of the employees concerned.

5) CASUAL LEAVE AND SPECIAL CASUAL LEAVE :


i). C.L. cards are maintained properly and C.L./R.H. are sanctioned by the
authorized official.
ii). Sanctioned C.L. or R.H. is correctly recorded in the attendance Register.
iii). C.L. /R.H. are availed within the prescribed limit. This should be test
checked with Attendance/Muster.
iv). Separate Register is maintained for the purpose of availing special Casual
Leave duly indicating individual employee name wise.
v). Proper sanction exists for availing special casual leave.
vi). For Grant of Special Casual leave on Sports Account, the prescribed limit,
for representing Zonal, National, International events are correctly
followed and necessary sanction exist for availing the spl. C.L.

6) COMPENSATORY LEAVE ACCOUNT:


i). A Register is maintained to watch that the compensatory leave is
sanctioned for having worked on holiday and the staff has been booked by
the office.
ii). The compensatory leave is availed within a reasonable period.
iii). Supervisory staffs are not sanctioned compensatory rest.
iv). In the case of staff governed by ‘Factories Act’ and the HOER the rest given
is in accordance with the provisions of the said statutes.
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7) LEAVE ACCOUNT:
i). Leave account is maintained correctly for all the staff on Rolls, and
governed by the leave rules the employee is governed.
ii). Advance crediting of LAP/LHAP are made correctly taking into account the
Dt. of joining, period of leave without pay etc.
iii). Every leave posting in leave account (Debit) is supported by leave
application, and sanctioned by the competent authority.
iv). In the case of commuted leave employee's specific request is forthcoming
and the period of absence is covered by Medical Certificate.
v). Proportionate reduction in the LAP @ rate of 1/10 for the period of LWP (if
any) is done before affording advance credit every half year.
vi). In the case of ‘LND’, extraordinary leave etc, the leave period is covered as
per the extant rules.
vii). In the case of ‘LHAP’ - Leave salary is drawn correctly.
viii). LWP period are recorded correctly in the S.R. and no wages are drawn.
ix). No leave is sanctioned/availed without sufficient leave balance.
x). Postings of leave account are test checked with reference to
Muster/Attendance register etc. and Leave balance is brought forward
correctly on every page of the leave account without any over or under
casting of leave.
xi). Leave accounts are properly attested by the responsible official
periodically.
xii). Paternity leave is availed by the male employee within the prescribed time.
xiii). Maternity leave is availed for the first two living children and necessary
entries about availing the leave mentioned in the leave record.

8) EXTRACT OF MUSTER /ABSENTEE LIST:


i). Extract of muster sent to the personnel department are test checked with
attendance register/muster roll and to ensure that the extractions are
correctly done.
ii). Leave particulars shown in the Absentee list agree with the Attendance
Register.

9) TRAVELING ALLOWANCE AND CONVEYANCE ALLOWANCE:


i). The T.A. Bills are correctly prepared, signed by the controlling officials.
ii). The movement shown in the Journal agrees with Attendance/Muster Rolls.
iii). The amount of T.A. claimed are as per the eligibility criteria based on their
Pay and Class of City.
iv). The movement shown in the Journal are test checked with Train Time
Table to ensure that the claims are correct.
v). Conveyance allowance claimed by the employee is admissible as per rules
and rate per km. claimed are as per prescribed rates.

10) NATIONAL HOLIDAY ALLOWANCE:


i). The allowance is claimed only for those non-gazetted official, who are
essentially required to work on National Holidays and the booking of staff
on National Holidays had the sanction of the competent authority i.e.
DRM/ADRM etc.
ii). The staff in whose favour the allowance is drawn has actually worked on
that day as per the attendance register.
iii). The rates of allowance claimed are in accordance with the rates furnished
by the Railway Board from time to time.
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11) OVER TIME ALLOWANCE:


i). Necessary Registers are maintained to record the overtime worked and
entries attested by the Gazetted Official.
ii). Necessity for working overtime should be closely scrutinized.
iii). The rate of allowance is correct.
iv). The actual O.T. worked and allowance claimed is in accordance with the
sanction.
v). The entries in the Register and O.T. slips have not been altered without
proper attestation.
vi). The total O.T. allowance claimed agrees with the O.T. Register.
vii). Classification of staff is done, as per HOER and that the calculation of O.T.
is correct.

12) RENT ROLLS:


i). Rent Rolls are prepared correctly including all the employee's who are in
Rly. Quarters.
ii). Rent, water, conservancy charges shown in the statement are correctly
recoverable from the staff.
iii). Electrical energy charges are recovered correctly from all the staff in
occupation of Rly. Quarters.

13) BUILDING REGISTER:


i). Necessary Building Registers are required to be maintained by the Engg.
Subordinates and a copy of the same is available in the Personnel Branch
for forcing correct recoveries.
ii). Complete details viz., Plinth area, type of the building, electrical
installations etc. are indicated both for service and residential buildings.
iii). The Register is updated every time when buildings are con-
structed/dismantled.
iv). The Register is periodically reviewed to ensure that all the Buildings in
that particular jurisdiction are brought into the Register.

14) LOANS AND ADVANCES (RECOVERY REGISTER):


i). Details of various advances sanctioned to the employees are recorded
correctly and the recoveries made are posted correctly individual employee
wise.
ii). Conditions stipulated for grant of various advances are satisfied.
iii). Balances of advances are struck correctly every month and it is ensured
that the advances are recovered within the permissible installments.
iv). In the case of interest bearing advances, the recovery of interest is certified
well in advance and recovery towards interest commenced immediately on
completion of principal amount.
v). In the case of staff transferred from other units, the recovery of loan
amount are correctly brought into the Register and checked with the LPC.
Similarly in the case of transfer of employee's to other units, the LPC
reflect the correct amount of loan due for recovery.
vi). The Register is reviewed by the responsible official periodically.

15) FESTIVAL ADVANCE:


i). Festival Advance is sanctioned to the eligible employees based on their
basic pay.
ii). Recovery Register is maintained allotting separate folios for each festival.
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iii).Recoveries are commenced in time and completed within 10 instalments.


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

16) DIET CHARGES:


i). Diet charges statements are correctly received and details are posted in
the recovery Register.
ii). Recoveries towards Diet Charges are made as per the diet charges
statement.
iii). The diet charges billed by the Medical Department are test checked to see
that they are correct as per the prescribed rates.
iv). Outstanding as per the register should be reviewed and advised for proper
action for recovery.

17) RECOVERY OF RENT:


i). Rent and conservancy charges are recovered from all those employee's
who are in occupation of Rly. Quarters.
ii). Rent has been recovered according to plinth area and type of the quarter.
iii). Water charges are recovered from all the quarters occupied by Gazetted
Officers, according to the type of the Rly. Quarters, at the prescribed rates.
iv). It has to be checked that Rent is recovered from the employees, who have
been allotted quarter and not occupied/delay in occupation beyond 7 days
etc.
v). Damaged rent/special licence fee for unauthorised occupation are
correctly recovered as per extant rules till the quarter is vacated/evicted.

18) REIMBURSEMENT OF TUITION FEES AND CHILDREN ALLOWANCE


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

19) PASSES/PTOS:
i). Stock of passes, PTO books and Blank card passes is not in excess to the
requirement.
ii). Pass/PTO books available in stock are correctly entered in the Stock
Register.
iii). Continuity of the Books (Pass and PTO) are checked and certified.
iv). Passes and PTOs are issued as per the Rules and as per the eligibility of
each employee.
v). Necessary Register's are maintained calendar year wise and all issue of
Pass and PTO's are correctly entered against each employee's account.
vi). Passes are issued on correct route, inclusion of dependent in the pass,
validity period etc. are test checked from the counter foils.
vii). Family declarations are obtained from all the employee’s at regular
intervals.
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viii). Separate Accounts are maintained for issue of pass on School Account,
complimentary passes on retirement Account. etc.
ix). Used passes are obtained from the employees and pasted to the
counterfoils.
x). The issue of Emergent Duty Passes are as per the rules and not issued for
more than 7 days.
xi). All the pass books & PTOs are kept under safe custody.
xii). Residential card passes are issued as per rules and separate ledger is
maintained for this purpose. It should be ensured that RCP's are not
issued for employees those who are availing Transport allowance.
Necessary declaration is obtained for issue of residential card pass.

20) RECOVERY OF ELECTRICAL ENERGY CHARGES


i). Advice from the SR.DEE is being received for the entire employee's who
are in occupation of Rly. Quarters for recovery of Electrical Energy
Charges.
ii). Recoveries are made correctly.
iii). Under charges/over charges if any, are adjusted/and recoveries made
correctly.
iv). There are no Railway quarters without recovery of Electrical charges.

21) RECOVERY OF ADVANCE OF PAY ON TRANSFER:


i). Separate Register is maintained for watching the recovery of Advance of
Pay.
ii). Proper sanction is obtained for sanctioning of Advance of Pay.
iii). In case the employee has drawn advance of pay before effecting transfer,
the same should be recorded in the LPC.
iv). There is no delay in recovery, and recoveries are completed within a period
of 3 months.

22) NIGHT DUTY ALLOWANCE:


i). Proper record is maintained for the night duty performed, and all the
entries are attested by responsible official.
ii). Employees for whom the allowance is claimed are eligible to draw the
same.
iii). The weighted hour of night duty has been correctly calculated.
iv). The rates of night duty allowance per weighted hour of night duty are
correct with reference to the basic pay of the employee.
v). Proper sanction is obtained.
vi). Certificate furnished are correct.

23) COURT ATTACHMENT REGISTER:


i). Register for court attachment is maintained properly.
ii). Full particulars regarding employee's name, designation, station, staff no.,
total amount to be attached and no. of instalments etc., are recorded in
the register and attested by the bill drawing officer.
iii). Particulars of the court order are clearly written in the register.
iv). The amount referred to in the attachment order is recovered and noted in
the register.
v). Necessary details of payment of the court attachment to the concerned
court i.e. Cheque No. etc. are posted in the register.

24) GRANT OF TRANSFER ALLOWANCE:


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i). Transfer and package allowance is granted as per Rly. Bd.’s instruction
and the revised orders based on VI PC. Recommendations are correctly
followed.
ii). It has to be ensured that Transfer grant is allowed based on actual
transfers caused out/with reference to O.O., LPC, Joining report etc.
iii). In case of employees staying in Rly. Quarters, the transfer and packing
allowance is drawn after vacation of the Rly. Quarters.
iv). The composite Transfer Grant in the case of staff transferred within the
Hqrs. /Divl. Area allowed if the official is actually vacated the residence.
This has to be checked with the authenticated documents.

25) PAYMENTS UNDER WORKMEN'S COMPENSATION ACT:


i). Whether a register is maintained to show the details of injury contracted
while on duty and the payments made under W.C. Act.
ii). The amount of compensation paid has been worked out in accordance
with provisions of the act and all conditions of payment are fulfilled.
iii). The amounts of 1/2 monthly payments are adjusted in the leave salary.
iv). In case of Hospital leave sanctioned, it is as per the rules and competent
authority's sanction obtained.
v). It has to be ensured that the workman is a regular Railway employee and
not a casual labour, etc.
vi). Where the Railway has paid the compensation for contractor's labour by
virtue of the provisions in the Act, it has to be recovered from the
contractor without delay.
26) STATION PAY ORDERS:
i). Issue of SPO's are justified.
ii). The amount withdrawn from station earnings are permissible items as per
the extant rules.
iii). Accounts copy of the Pay Order is received correctly in the Accounts
Office.
iv). The SPO's received in the accounts office are properly checked before
adjusting the transaction in the respective accounts.
v). The station withdrawals are duly supported by sanction of the competent
authority not less than a Sr. Scale Officer, SM/ASM's signature, recipient
signature etc.,
vi). The amount withdrawn is kept in the suspense account till the
transaction is completed, and necessary vouchers are received.
vii). In the case of amount withdrawn towards funeral advance etc., the
amount is adjusted in the settlement dues of the deceased employee.
viii). The Head of Account shown in the Pay Order is correct and expenditure
adjusted to the correct Head of Account.

27) REGISTER OF WITHHELD AMOUNT:


i). A register is maintained with complete details, viz. PPO reference, date of
retirement, reasons for the amount withheld etc.,
ii). Periodical review is undertaken and prompt action taken for release of the
withheld amounts.
iii). All dues/recoveries are adjusted before the withheld amount is released
for payment.
iv). Test check of few cases released from withheld amount to ensure that
amount is released for payment correctly.

28) MUSTER ROLLS AND LABOUR PAY SHEETS:


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i). Muster Rolls are maintained properly and handled only by the authorised
officials viz. SE (P.Way), SE (Works) etc.
ii). It is maintained properly rendering it difficult to tamper with or make
unauthorised additions or alterations in the entries once made.
iii). To ensure that the Muster sheets are original and bear the initials of the
officer on the right hand corner and the same is written daily noting the
number of employees present, absent, leave etc, and closed by the
incharge official with initials.
iv). The name, designation and rate of Pay of the employees are written
correctly.
v). Labour pay sheets are made in accordance to the muster and number of
days worked by the employee.
vi). The rate of pay agrees with the service records and is as per the rules.
vii). Necessary sanctions exists and the nature of work for which the labourer
is engaged correctly written in the muster.
viii). Absence during assumed attendance has been correctly adjusted.
ix). The muster roll and paysheet agree with each other in every respect and
correct allocation is given.

29) PAY BILLS:


i). Pay and allowances were drawn correctly.
ii). All recoveries are made correctly.
iii). No. of days wages drawn were as per the attendance and absence during
assumed period of attendance has been regularised correctly.
iv). Special Pay, Personnel Pay, leave salary etc., if any are drawn correctly
and as per rules.
v). Rent recovery, Elec. Energy recoveries for the staff occupying quarters are
done correctly.
vi). Increments are drawn correctly.
vii). CGIS and other statutory recoveries are made correctly.
viii). All accompaniments to the pay sheets are attached and are correct.
ix). The posts for which salaries drawn are as per the scale check and
necessary scale check statement attached to the pay sheet.
x). In case of work charged posts necessary currency exists for the posts
operated.
xi). In case of Fixation of Pay/revision of pay due to promotion, revision of the
Grade etc. are done correctly and certified by Accounts Office and suitable
entries made in the service register.
xii). Recoveries towards Festival advance is made correctly and immediately
after receipt of the advance. This has to be checked duly connecting the
memorandum of sanction.
xiii). T.A. claims are allowed based on certified copy of the T.A. summary by
Accounts Office and are claimed correctly.
xiv). In case of supplementary Pay Bill proper care is taken to ensure that
necessary certificates are furnished, and suitable entries are made in the
relevant records to avoid double payment.
xv). Allocation for the wages and recoveries are furnished correctly.
xvi). In case of Running Staff the wages and allowances, (Mileage Allowance) OT
etc., are properly and correctly drawn.
xvii). Memorandum of difference is checked carefully for the differences
mentioned there in for every item.

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30) REVIEW OF LAST PAY CERTIFICATES:


It should be seen that:
i) The last pay drawn by the employee has been correctly mentioned in the
LPCs.
ii) Outward LPCs should be test checked with recovery registers to ensure
that the outstanding balances if any are correctly mentioned.
iii) In case the employee is in occupation of Railway Quarter, LPC should
clearly indicate the period up to which permission obtained penal rent if
any to be recovered etc.
iv) In the case of Inward LPCs, it should be seen that the amount due for
recovery towards loans and advances, advance of pay if any are correctly
recovered. Inward LPCs should be test checked with pay sheet and
recovery registers.

31) RAILWAY QUARTER ALLOTMENT REGISTER:


It should be seen that:
i) Allotments of Railway Quarters are made to the eligible employees as per
the priority register.
ii) There is no delay in allotment or occupation after allotment.
iii) If there is delay in occupation of Railway Quarter after allotment i.e.
beyond the permissible time, bill drawing unit has been advised for
recovery of rent besides stoppage of HRA.
iv) There is no quarter lying unoccupied for a long time.
v) There are no instances of un-authorised occupation, sub-letting, retention
beyond permissible period etc. If so, suitable action has been taken as per
extent rules.
Items that are peculiar to various executive office and the points to be
looked into during local inspections are given below:

(III) ENGINEERING OFFICES (HEAD QUARTERS, DIVISIONS AND FIELD UNITS):

1). Tenders.
2). Agreements and Work Orders.
3). Measurement Books and Register of M.B.
4). Standard Measurements.
5). Contractor Bills.
6). Contractor ledger.
7). Muster Sheets/Labour pay sheet.
8). Stock verification.
9). Dead Stock/Tools and Plants Register.
10). Materials-at Site Account.
11). Check of RE 9B/Challan Books.
12). Issue of Steel, Cement, to contractors.
13). Ballast ledger/Engine hire charges.
14). Ballast Challans.
15). Building Registers.
16). Register of level crossings.
17). Register of sidings.
18). Review of Money Value Books.
19). Leasing and Licensing.
20). Completion Reports.
21). Monthly Progress Report.
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22). List of failed contractors.


23). Risk and Cost Tenders.
24). Variation in Agreements.
25). Imprest Account.
26). Machinery and Plant.
27). Quarters Registers.

1. TENDERS:
i). The object and purpose for calling Tenders has to be checked. Necessary
estimate and plan is prepared and sanctioned by the competent authority
for the work for which tender is to be called for. Tender Register is
maintained with all relevant details. Tender notice has been issued with
complete details and sufficient time as required has been given. EMD at
prescribed rate has been correctly mentioned. The name of the tenderers
to whom the Tender Forms are issued and the Money receipt details are
indicated in the Register. Cash collected for the sale of Tender forms has
been accounted correctly.
ii). Tender schedules before floating for Tenders has been verified by finance
(wherever necessary)
iii). Tenders have been called for in advance of the date of commencement of
work, and due publicity has been given.
iv). The rules in regard to calling for limited, and open tenders have been
observed.
v). Tender opening register is maintained and that this duly prepared
checked and initialled by the executive and Accounts Officers. It should
be ensured that only firms/Agencies to whom tender forms sold have
tendered.
vi). Late and delayed tenders are dealt as per instruction’s issued by Railway
Board / GM

2. AGREEMENT AND WORK ORDER:


i). Details of Agreement or work order are entered on a separate page in the
register and particulars of bills passed entered correctly against each
agreement.
ii). Particularly the Engineers and extension, variations in rates/qty. have
reviewed the register if any are correctly indicated.
iii). The rates and the quantities, Agreement value etc. entered in the register
are tallied with the original Agreement.
iv). Excess if any have been duly authorised by the competent authority.
v). Finance vetting has been obtained before issue of work orders, if the value
exceeding the prescribed limits.
vi). There is no deliberate splitting of WOs to avoid finance vetting.
vii). Date of completion is correctly mentioned.
viii). The work has been completed with in the due date/extended date or
reasons for delay in execution properly recorded.
ix). W.Os are duly crossed after final payment.

3. MEASUREMENT BOOKS:
i). The Register of M.Bs maintained in the AEN's office have complete details
viz., Dt. of opening, to whom issued, when issued, dt. of return etc.
ii). M. Bs no longer required are returned to AEN's office promptly.
iii). Proper arrangements exist for preservation of M.Bs i.e. for 10 years after
completion of the work.
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iv). Date of Measurement recorded in the M.B. by the officials concerned is to


be test checked with relevant record viz., diary, TA Journal etc.
v). Recording of Measurements are done as per rules. In case of subordinates
the measurements are test checked by officers as per the prescribed
percentage.
vi). The measurements recorded in the ‘On Account’ and ‘Final bills’ should
agree with the measurements recorded in the M.Bs maintained in
AEN/Office. For this purpose inspecting official should carry certain paid
vouchers of contractor bills.
4. STANDARD MEASUREMENTS:
Test check that the service/residential buildings for which
paintings/colour washing is done as per entries in the standard
measurement books really exists as per the entries in the Register of
Buildings.

5. CONTRACTORS BILLS:
i). The inspecting official should carry paid vouchers (contractors bills) and
verified with the MBs available with AEN/Office, to ensure that the work
done for which payment made agree with the initial records.
ii). Material statements accompanying final bills should be checked with
reference to materials issued to contractors according to issue
Note/Challans and the balance quantity returned and accounted for
correctly. Empty cement bags returned are accounted properly.
iii). In term of cl.37 (1) of General Conditions of Contract, all test checks
conducted as required by Railway should be wholly at the expense of the
contractor. Hence, it should be ensured recovery of charges are effected
from the contractors for testing quality of steel, cement, bricks etc. unless
the same is agreed to be borne by Railway.
iv). Contractors have accepted the final measurements.
v). Bills for earthwork are as per the entries in the level book, earth work
statement and measurement books etc.,
vi). In case of delay/extension etc. necessary penalty to be recovered as per
the subsidiary Agreement are done correctly.
vii). The contractor is not issued materials more than the requirement.
Physical progress of the work has to be compared with the issues during
inspection.

6. CONTRACTORS LEDGER:
i). Contractor ledger is maintained properly in the Accounts Office and all
entries are made.
ii). Separate page is maintained for each Agreement and the ledger is
maintained like a personal ledger of contractors.
iii). The bills passed should be test checked with the entries in the contractors
ledger.
iv). For the stores issued out side the scope of the contract, the amount is
debited in the ledger.
v). Periodical review and reconciliation of the contractor ledger with work
register is being done.

7. MUSTER SHEETS/LABOUR PAYSHEETS:


i). Muster/Attendance of Group 'D' staff is recorded efficiently in the
Forenoon and Afternoon.
ii). Muster sheets are serially numbered and counter signed by the authorised
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official.
iii). The detail of work for which the labour is engaged is recorded correctly.
iv). Labour pay sheet prepared based on muster is correct and the No. of days
wages drawn, after considering the Absent days etc.
v). The attendance is test checked at least once in a month by Executive
Official.

8. STOCK VERIFICATION:
i). Stock sheets received from the Accounts Department have been attended
to promptly and remarks sent.
ii). Excess/Shortfall has been adjusted correctly in the ledger as per the S.V.
Sheets, and remarks sent to Accounts.

9. DEAD STOCK/TOOLS AND PLANT:


i). Separate ledger is maintained for the Dead Stock items and Tools and
Plant.
ii). Each entry in the Dead Stock Register is supported by date of receipt,
from whom received, value etc.
iii). Each Dead Stock item has been supported by proper identification
number for verification and check
iv). Dead stock viz. brief cases etc. supplied to the officials are having proper
acknowledgement.
v). T & P issued to the workers are properly recorded and accounted with
employee's name and designation.
vi). Proper action is taken for recovery of the cost of the tool in the case of
non-return of tools after the work is over, or in the event of
transfer/retirement of the employee.
vii). It has to be ensured all the PCs, Computer Accessories etc. are also
entered in the dead stock register and shown to the ASV during
verification.
viii). The inspecting official has to ensure that all the new items viz., PCs,
XEROX Machines, TVs and all other Electronic items, procured in the
office for use are correctly entered in the Dead Stock Register.
ix). Jeep/Lorry/Vehicle should also find a place in the T & P ledger, and the
periodical replacement of tyres etc. should be recorded in the Register.
x). The usage of XEROX paper, computer floppy etc. have also to be test
checked by the inspecting official and has to be ensured that proper
register is maintained and entries are made as and when used.

10. 'MATERIALS - AT-SITE ACCOUNT' :-


i). As per the provisions in the Engineering Code, Engineering subordinate
has to prepare 'MAS' return for all special work etc. costing Rs.3 lakhs and
above. The return has to be prepared work wise indicating the Materials
received, issued and Qty. balance.
ii). 'MAS' Returns should be sent to District/Divisional Unit for further
necessary action, and carrying out necessary adjustments as and when
materials are consumed for the work.
iii). The inspecting official has to ensure whether the 'MAS' Return are
prepared efficiently and necessary adjustments are carried out. The
preparation of 'MAS' return will reveal the value of Materials held by the
Engg. Subordinate at any particular period of time.

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11. RE 9B/CHALLAN BOOKS:


i). RE 9B/Challan Books for issue of stores to other Unit/Contractor etc. are
maintained correctly.
ii). The Qty issued has to be test checked with the ledger.
iii). Proper acknowledgements are obtained for all issues.
iv). Necessary adjustments have been carried out for issue of stores to other
units.
v). In case of issue of stores to Non-Railway bodies, the cost of the stores is
raised correctly. Necessary departmental charges and other incidental
expenses are included in the claim.

12. REVIEW OF STEEL AND CEMENT LEDGERS:


i). As per extant instructions of Rly. Bd. the contract agency has to use his
own steel and cement. However, if the issues are for petty Zonal Works or
issues made to departmental labour, it has to be seen that the issues are
as per the actual requirement and the work for which it is issued had the
sanction of AEN/other responsible official.
ii). The return of empty cement bags by the Contract Agency has been
accounted properly, is to be returned as per tender conditions.
iii). Proper arrangements exist in the SE/Works for storage of cement/steel
etc. and this aspect has also to be checked by the inspecting official.

13. BALLAST LEDGER AND ENGINE HIRE CHARGES BILLS:


i). The supply of ballast by the contractors has to be measured and recorded
in a register. This has to be personally maintained by SE/P.Way
indicating the location, quantity etc. This ledger has to be test checked
with the Agreement, supplies made and Measurement Books etc.
ii). The purchases are not made unnecessarily.
iii). Engine hire charges if any advised promptly, to Divisions/Headquarters
for adjustment.

14. BALLAST CHALLANS:


i). The accepted copies of the challans have been properly kept.
ii). The contractor's loading and un-loading bills have been prepared
correctly.
iii). B.T. Trains are not detained on contractor's account more than the
prescribed time and in the event if detention is necessary wharf
age/demurrage charges are collected from the agency.
iv). The entries in the B.T. Challans agreed with the Guard's Journal
concerned.

15. BUILDINGS REGISTER:


i). Buildings Register maintained in the SE/Works/Office has to be verified to
ensure that all the buildings in his jurisdiction are entered with complete
details. All the new buildings and quarters are entered and number
allotted.
ii). Dismantling of the building is recorded and entries made correctly with
authority.
iii). Additions/Alterations are done correctly.

16. REGISTER OF LEVEL CROSSINGS:


i). Records are maintained to indicate the level crossings for which
maintenance charges are recoverable from outsiders.
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ii). Details for manned/unmanned L.Cs, Engg. and Operating L.Cs etc. are
indicated correctly.
iii). The number of staff engaged for maintenance of the L.Cs is mentioned.

17. SIDINGS:
i). The No. of sidings in the jurisdiction of SE/P.Way and connected records
has to be checked.
ii). Whether the sidings are periodically inspected by the SE (P.Ways) and the
details intimated to Accounts Office for raising the 'Debit' against the
siding owners. (inspection charges)
iii). The inspecting official has to check whether any extra expenditure
incurred during maintenance of siding and if so the cost of the same
advised to Accounts Office for preferring the claim from the siding
authorities.
iv). The inspecting official has to check whether Railway Staff working in the
siding has availed the rent free accommodation provided by the siding
owner. In such case, it has to be ensured that they are not drawing HRA
from Railways.

18. MISC. CASH REMITTANCE BOOKS:


i). Misc. Cash Remittance Books has to be checked with reference to the
Amount realised towards sale of Grass, Wooden sleepers if any, and other
items for which cash is received.
ii). The remittance particulars have to be compared with the
acknowledgements received and ensure no delay in remittance.
iii). The correct realisation of the Amount has also to be verified.

19. LEASING AND LICENSING:


i). Proper Agreement is executed and all Agreements for leasing and licensing
of Engg. Plots, are available.
ii). License fee has been paid periodically and action has been taken in the
case of delay in realisation of dues by levying penalty.
iii). Licensing of land under "Grow More Food" Scheme, has been provided
only to the deserving Rly. Staff and not to outsiders. No fresh cases of
licensing under "GMF" scheme is given.
iv). Licence fee is realised correctly.
v). Necessary Registers are maintained separately for acquisition and
relinquishment and it contain up to date information.
vi). Where land has been relinquished necessary credits have been received.
vii). It has to be ensured that revision of licence fee has been made whenever
the Board revises the same.

20. COMPLETION REPORTS:


i). It should be seen whether for all completed works, the accounts have been
finalised and C.Rs drawn.
ii). The pending cases have to be reviewed for the delay.

21. MONTHLY PROGRESS REPORTS:


Monthly Progress Reports indicating the progress of various phases of
works executed/in progress etc. has to be checked. If there is any
abnormal delay, or works not taken up after awarding the contract, such
cases have to be reviewed and deficiencies if any brought out in the
inspection reports.
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22. LIST OF FAILED CONTRACTORS:


A register indicating the list of failed contractors has to be maintained at
Divisional and Head Quarter’s level. This Register has to be reviewed by
the inspecting officials .Whether the Register is updated periodically is
also to be seen.

23. VARIATION IN CONTRACT:


It should be seen that:
i). Variations in quantities of any item/items exceeds 25% of the total value
of the Tender accepted cost are correctly dealt with as per extant rules. &
Approval of completed authority for the same is available.
ii). It has also to be seen that in all cases of variation in quantities exceeds
25% prior Finance Concurrence is obtained as per extent rules.

24. IMPREST ACCOUNT:


i). Cash Imprest for general purpose and special purposes like petrol Imprest
for welding works etc. has to be checked by the inspecting official. The
actual cash balance is verified and tallied with Imprest Account and
vouchers on hand verified and certified.
ii). The Amount spent from Imprest has to be reviewed to see that they are
spent for the correct purpose for which Imprest is sanctioned.

25. MACHINERY AND PLANT:


Machineries, like welding machines, generators etc. available in the field
units are correctly accounted and proper history book is maintained for
each item and no machinery is lying idle or out of commissioning.

26. QUARTERS REGISTERS:


One of the important activity of SE/Works is the maintenance of staff
quarters in his jurisdiction. While reviewing the Staff Quarters Register, it
should be seen that: Proper Register is maintained for each type, no
quarters is lying vacant for longer period, there is no un due delay in
allotment of staff quarters etc. Railway quarter sub-let if any or
un-authorized occupation of Railway Quarters noticed if any during
inspection, the matter should be brought to the notice of Personnel
Department, and to Head Quarters for prompt action.

SPECIAL ITEMS FOR MECHANICAL AND OPERATING DEPARTMENT:

1). Review of Target of Out Turn and Actual.


2). Review of M & P items and its utilisation
3). Review of Work Orders
4). Review of cost of POH of coaches, wagons etc.
5). Review of Time taken to repair of Rolling stock from placement to release
6). Deposit Works - Hiring/Leasing of Locos etc.
7). Running allowance/O.T. of running staff
8). Review of Man power utilisation in Work shops and C & W units
9). Periodical Medical Examinations
10). Imprest stores
11). Review of Stores drawn for repair/POH activity
12). Trip ration of HSD Oil to Drivers
13). Duty movement of Drivers/Guards at crew control office
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14). Vision Test Registers


15). Check of accounts of Printing and Sale of Railway Time Tables

1. REVIEW OF TARGET OF OUT TURN:


i). Railway Board has fixed the Target of out turn of POH of coaches/wagons
for each workshop. The infrastructure facilities provided in the workshops
are according to the targeted activities. The inspecting officials has to
check the out turn of Monthly/Annual with reference to the Targets fixed
and if there is any shortfall in the out turn the same has to be analysed.
ii). Incurrence of expenditure in the workshop should co-relate with the
out-turn. This aspect has to be verified by the inspecting official.

2. REVIEW OF M & P ITEMS AND ITS UTILISATION:


i). The Register of Machinery and Plant available in the workshop has to be
reviewed.
ii). It should be seen that no machines are lying idle or excess to requirement.
iii). Under utilisation of Plants and Machines if any have to be identified and
advised for better utilisation or transfer to other needy units.
iv). It should be seen that no Machines are kept out of commissioning within
the warranty period. If so, action has been taken to replace/rectify the
same within the warranty period.
v). The condemnation of Rolling Stock if any, has been done correctly as per
Railway Board instructions.

3. WORK ORDERS:
i). It should be seen that work orders are issued correctly and continuity
number is maintained.
ii). There should not be abnormal delay in completing the job.
iii). In case of completed work orders the charges have been brought to
account correctly.
iv). The list of work orders issued during the month has been sent to accounts
promptly and in which no work orders should be out of series, and the
allocation furnished is correct as per Accounting classification.

4. REVIEW OF COST OF POH OF COACHES/WAGONS:


The cost of POH of coaches/wagons etc. so arrived periodically by the
CME on various workshops in the Zonal Railway should be checked to see
that there may not be abnormal variation in costs between workshop to
workshop for the same activity. The reason for variation if any has to be
analysed.

5. TIME TAKEN FOR MAINTENANCE OF COACHES/WAGONS:


i). In the case of Primary Maintenance, Secondary Maintenance and other
repairs, it should be seen that there should not be undue delay for repair
and release of the Rolling Stock as it would affect the wagon Turn round.
ii). The Register of placement and release of wagon/coaches in the C &
W/Depot and Wagon Workshops should be reviewed. The reasons for
delay if any should be reviewed and reasons such as want of spare parts
etc. should be brought to the higher authorities through inspection
reports, for remedial action.

6. HIRING/LEASING OF LOCOS AND WAGONS:

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During the inspection of Diesel Sheds/Work Shops, it should be seen


whether any of the locos/wagons leased to outside bodies like NTPC,
APSEB etc.
i). In such cases, necessary cost has been correctly estimated and claimed/
ii). In case of Repair and POH activities done for the Locos/Wagons of
Non-Railway bodies, it should been seen whether the cost of repair has
been correctly estimated and the party deposited the cost in advance.
iii). The Agreement executed in this connection has to be reviewed to ensure
all charges and other conditions are correctly incorporated and it is being
followed.

7. RUNNING ALLOWANCE/O.T. PAYMENT:


i). The inspecting official has to carry the paid 'OT' Journals of Drivers and
Guards during inspection of SS/Office, Crew Control Office etc.
ii). The overtime shown in the 'OT' Statement/Journal has to be compared
with the Signing 'OFF'/Signing 'ON' register maintained in the crew
control office and other records of SS/Office i.e. diaries etc.
iii). The cases of abnormal ‘OT’ payment have to be checked to ensure that
there is no fictitious claim and the Running staff are not intentionally
absent/leave on rotation basis to claim 'OT'.
iv). 'OT' rules are strictly observed and Minimum roster hours are observed.

8. REVIEW OF MAN POWER:


i). The availability of staff in the Work- shops, C & W Depots, SS/Office,
Diesel Sheds etc. has to be reviewed critically with reference to the activity
performed.
ii). It should be seen that there is no idle labour and there is proper Work
Justification.
iii). The prescribed yardstick for requirement of men for POH of
Wagon/Coaches etc has to be compared with reference to the ‘Out Turn’
and surplus staff if any identified.
iv). Whether the improvement in method of working due to sophisticated
machinery, closing down of Loco Sheds, Unigauge etc. has resulted in the
reduction in Manpower at C & W Depot, Work Shops, has to be seen.

9. PERIODICAL MEDICAL EXAMINATION:


i). The Register of ‘PME’ has to be reviewed and seen that all running staff
Group 'C' and Group 'D' have undergone Medical Examination as per the
periodicity and the results recorded correctly.
ii). In case of failure in Medical examination, proper action has been initiated
for alternate job without delay.

10. IMPREST STORES:


i). Imprest schedules have to be checked to ensure that the stores are
correctly recouped and the requirements are correctly assessed.
ii). If the consumption of stores is very low, and stock held is more than the
average requirement, the unit will be advised to review and reduce the
Imprest schedules for the next period.

11. REVIEW OF STORES DRAWN FOR REPAIR/POH ACTIVITY:


Materials drawn for repair and POH activity should be checked to ensure
that the stores drawn are properly utilized according to the requirement
and scrap stores are returned to the Depot immediately. Shop floor
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inventory of stores balances to be carried out in one or two shops during


inspection of Work Shops, Sheds etc.

12. TRIP RATION OF 'HSD' OIL:


The inspecting official during inspection of fuelling point/sheds should
check the issue of HSD oil to the Drivers as per the shed returns and
compare the same with issue tickets and drivers log Book to ensure that
there is no variation. The consumption of fuel should also be checked to
see that there is no abnormal variation to the "Trip Ration" fixed by the
Division for the particular section. Variation if any noticed should be
brought out in the inspection report for review of the Mechanical
Department.

13. CREW CONTROL OFFICE:


The duty movement of Drivers and Guards viz. 'signing off' and 'signing on'
should be checked and compared with link arrangements. Abnormal link
arrangements, noticed if any, should be reported in the inspection report
to avoid unnecessary payment of OT/Running allowance.

14. VISION TEST REGISTERS:


It should be seen that;
i). Vision test register is maintained with all relevant particulars.
ii). Drivers, Guards, etc. have been medically examined as per the periodicity
and the result of Medical examination indicated in the register.
iii). The register is regularly checked and reviewed by the responsible officials
of the Operating Department.
SPECIAL ITEMS FOR COMMERCIAL BRANCH:

1. LICENCE FEE FROM VENDORS, BOOK STALL KEEPERS, PLAT FORM STALL
CONTRACTORS, CYCLE/SCOOTER STANDS ETC : -

i). It should be seen that the licence fee is correctly levied and necessary
contracts have been entered into as per extant rules.
ii). The licence fee due has been correctly realised and remitted to Railways
account.
iii). If the license fee/royalty is to be recovered based on Annual sales, it
should be seen that proper machinery exists to verify the Annual Sales,
and the amount of license fee is correctly recovered.
iv). Conservancy/Cess charges to be levied for all Platform Stall Contractors.

2. HANDLING CONTRACTS:
i). It should be seen that the handling of parcels, goods etc., at important
stations based on the result of lowest tender and proper agreements have
been executed.
ii). Handling Bills sent to Accounts Office have been prepared correctly and
relevant records available with the contract agencies.

3. REFUNDS/CONCESSIONS:
It should be seen that the refunds arranged are admissible as per rules.

4. ACCOUNTS OF SALEABLE PUBLICATIONS VIZ. TARIFFS, CONCESSION


BOOKS, TIME TABLE ETC.:
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i). Proper Accounts has been maintained for each of the item received and
sold.
ii). Un-sold copies if any are promptly disposed/return to the required
stations.

5. DEMURRAGE AND WHARFAGE:


i). Demurrage and Wharf age charges waived at different levels are as per the
permissible limits.
ii). There should not be any irregular waival, which will result in loss of
revenue to the railways.
iii). Outstanding dues are realised without delay.

6. REVIEW OF SIDING AGREEMENTS:


It should be seen that:
i). Siding Agreements have been executed for all the sidings, which have been
opened for Traffic.
ii). Fixation of Trip charges and siding charges are fixed without delay with
finance approval.
iii). Sidings closed for traffic if any should be intimated to Engineering
Department advising for dismantling, and disposal of released materials.
iv). Before closed/dismantling it should be ensured that railway dues are
recovered from the siding owners.

7. REVIEW OF CLAIMS CASES:


i). The claims case admitted in the claims branch are properly investigated
before payments are arranged.
ii). Claims cases involving staff responsibility if any should be referred to the
concerned department for initiating action.
iii). There should not be undue delay, in settling the claims cases.

8. INSPECTION IN S & T BRANCH:


i) It should be seen that proper arrangements exist for disbursement of
Telephone Bills to various officers.
ii) New Connections, Provision of new 'DOT' phone, shifting of 'DOT' phones
etc. is done with the sanction of the competent authority.
iii) No delay in shifting/disconnecting 'DOT' phones from the residence of the
officer after superannuation/transfer etc.
iv) In case of Temporary connection of 'DOT' phones for the VVIP's visit
(Railway Minister) etc., the deposits paid to the Telephone Department are
adjusted immediately after the event is over.
v) Walkie-talkies are supplied only to the essential staff and every issue had
the sanction of the competent authority.
vi) Provision of STD/Internet connection to officers are made only with the
approval of Competent Authority and as per the guidelines issued by the
Board.
vii) The purchase orders for supply of cables, S & T equipments should be
reviewed with reference to the terms and conditions.
viii) For loss/theft of S & T cables/equipment it should be seen that the matter
has been reported to Security Department and adequate measures are
taken to tighten the security arrangements.
ix) Apart from the above, the following items viz., Review of stores, purchase
orders, regularization of excess calls, personnel calls made on DOT
Phones, etc. are also to be reviewed.
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x) Assets Register is kept up to date.

9. SECURITY BRANCH :
The following items should seen during inspection of Security
Branch.
i) The policy and procedure adopted for recruitment of RPF personnel.
ii) Deployment of RPF personnel to bandobust duties and recovery of charges
from the concerned Ministries/Departments. It should be seen that
charges are correctly worked out and included in the claim.
iii) Log Book of Vehicles, Uniforms Registers, imprest account, etc.
iv) Register of Theft detected and reported to the Security Department by
other Departments and action taken thereon.
v) Register of Arms and Ammunition reviewed to ensure that receipt is
correctly posted.
vi) Register of uniform should be checked. The receipt and issues are
correctly accounted for and issues are properly acknowledged.
vii) Status of the apprehended cases dealt by RPG and GRP and the position
of enquiries.

(VIII) GENERAL BRANCH:


Log Book of Office Staff Cars: -
1. i). It should be seen that the staff cars have been used for official purposes
Only and the officers signatures/initials obtained against each movement.
ii). If the cars had been used for private purposes, necessary charges as
applicable have been billed and recovered.
iii). Drawal of petrol commensurate with KMs in usage and there is no
abnormal variation in the consumption pattern.
iv) Repairs to the Staff cars have been done as per the provisions contained in
'SOP' and all major repairs had the certification from the nominated
officers of the Mechanical Department.
2. Quarter's Registers for allotment of quarters to officer should be checked
to see that there is no delay in allotment of Railway Quarters and the
Railway Quarters once allotted is occupied within 7 days. In case of delay
in occupation (after 7 days) rent at prescribed rates have been recovered
besides stoppage of HRA.
3. Retention of Railway Quarters after permissible period during deputation,
transfer etc. are dealt with correctly as per extant rules.
4. Special Imprest/Entertainment expenses: The accounts should be verified
and satisfied that every transaction is correctly accounted for and
supported by voucher. Balance amount left over if any after the occasion
has been remitted back to Railways and necessary vouchers submitted to
Accounts Office.
5. The accounts related to the allotment of Rail Kalyan, Community Hall,
allotment of Officer's Rest House on private account, etc. should also to be
checked to ensure that the amount collected are properly accounted and
remitted to Railways Account. The rules relating to the allotment are
correctly followed.

(IX) STORES BRANCH :

1. REGISTER OF PURCHASE ORDER: IT SHOULD BE SEEN THAT:


i). The Register is efficiently maintained. Continuity of P.O. Nos. is
maintained.
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ii). The P.O. is signed and issued by the authorised official.


iii). The COS is notified of the defaulting firms for action.

2. RECEIPT NOTES:
The quantity received as per firm's invoice and quantity accepted as per
Day Book of Receipts/ledger should be compared to ensure that there is
no discrepancy. The stores received are inspected before delivery as per
the inspection clause wherever applicable.

3. REGISTER OF SAMPLES:
The register should be reviewed to find out whether proper accounts are
maintained for receipts of samples, their return to the firms or taking
them to stock by credit to Stock Adjustment Account. The disposal of the
non-returnable samples should be properly exhibited in the register. All
disposals are covered by proper sanction of the competent authority.

4. REJECTIONS REGISTER:
The register should be reviewed to see that the rejected stores if any are
properly disposed off and the firm advised for replacement. All such
rejections should have proper sanctions and the Accounts Office and COS
advised for suitable action.

5. REGISTER OF DEFAULTING FIRMS:


It should be ensured from a general review of the register that the
defaulted firms have been noted and orders are not placed from firm’s
black listed for default in supply.

6. REGISTER OF REQUISITIONS:
The requisitions received for procurement of stores is vetted by Accounts
Office and requirement are assessed correctly based on the past
consumption. The long outstanding requisitions should be cancelled in
consultation with executive concerned.

7. THE PROCUREMENT ACTION INITIATED BY COS SHOULD BE


CHECKED AS UNDER:
i). Tender notices have been called for as required and relevant detailed
furnished.
ii). Sale of Tender forms, and the amount received are correctly accounted
and remitted.
iii). Tenders have been opened at the advertised time, date, in the presence of
Accounts representative and firm's representative.
iv). All procedures relating to the opening of Tenders have been correctly
followed and there is no deviation.
v). Tabulation has been done correctly duly filled in all columns.
vi). Tabulation forms verified by Accounts.
vii). Tender committee has been formed as per the provisions and all relevant
facts have been furnished to the TC members.
viii). Purchase orders are placed based on the TC recommendations duly
accepted by the competent authority.
ix). Purchase order before release has been verified by Accounts wherever
necessary.
x). Extensions to the due date of delivery/amendment to the P.O. etc. are
given only as per rules and associated finance views obtained wherever
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financial implications are involved.


xi). In case of defaulted firms risk and cost action has been initiated as per
rules.
xii). Liquidated damages for belated supply has been levied as per rules.

8. SURPLUS STORES:
It should be seen that prompt action has been initiated to form a survey
committee for disposal of surplus and non-moving stores.

9. AUCTION SALES:
Stores already declared as surplus should be disposed quickly through
auction sales. It should be ensured that accounts representative
associated in the auction sales.

10. Apart from the above, the following aspects should also been
checked by the inspection team especially in Depots,
a). Material in Depots
b). Bin-cards (Physical balance with Bin-card balance)
c). Weighment Register
d). Inward/out-ward wagon register
e). Challan Book
f). Cash remittance Notes in case of auction sales
g). Empties accounts
h). Pending stock sheets

(X) ELECTRICAL BRANCH


Agreements entered into with the State Electricity Boards for purchase of e
lectrical energy should be checked.

1. In case of supply Electrical energy for Traction purposes, the contract demand
and actual consumption should be checked. If the consumption is very
low than the contract demand or higher than the contract demand
electrical department should be advised for proper review and to revise the
contract.

2. Meter Reading;
i). It should be seen that Meter reading has been done from all the residential
quarters regularly at the prescribed intervals.
ii). The entries are not been made in pencil. In case, if the Railway Quarter is
locked, necessary entry made as "house locked" in the Register.
iii). Bills have been prepared in time and sent to the Personnel Branch and
Accounts Office for recovery without delay.
iv). Meter reading in respect of Non-Railway bodies viz. Plat Form Stall,
G.R.P., R.M.S offices etc. should be taken every month and bills raised at
the appropriate rates. Whether bills are issued every Month should also be
checked.
v). It should be ensured that the electrical energy charges for outsiders are
billed at commercial tariff rate.

3. Register of M & P Items:


i). The register is kept up-to-date.
ii). The condemned Transformers, Electrical poles etc. are disposed through
DS8.
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iii). Assets register is kept upto date.


4. The imprest stores available with AEF, and other stock holders should be
checked to ensure with supply and stock. If the issues are less than the
stock held, prompt action has been taken for revision of imprest schedule.
5. Surplus stores if any should be reviewed and advised for prompt disposal.

(XI) RAILWAY RECRUITMENT BOARD


POINTS TO BE SEEN: -
i). Postal Orders, Service Stamps etc. collected from the candidates are
properly accounted.
ii). There is no delay in en-cashment of postal orders.
iii). Remuneration paid to the examiner for setting question papers, and
valuation of answers with reference to Railway Board instructions from
time to time.
iv). Expenditure incurred in the conduct of the mass examination with
reference to the prescribed schedules and excess expenditure if any
regularised with the sanction of the competent authority.
v). Method of disposal of old answer sheets.
vi). Remuneration/over Time allowance paid to the staff in connection with
conduct of Examination and interviews.
vii). Receipt and expenditure account.
viii). Review of passes issued to candidates called for interview.
ix). Proper security arrangements exists for safety and preservation of records.
x). Rebate for the usage of franking machine is regularly claimed from the
postal department at the prescribed percentage.

(XII) OFFICE OF THE PUBLIC RELATIONS :


The following aspects should be looked into specially:
i). Advertisement, display boards, sign boards, hoardings etc. This phase of
work has been decentralised at the Divisional level. It should be seen that
proper agreements have been entered into with the advertisement
agencies, firm’s etc. The security deposit, advertisement charges are
collected properly and remitted to Railways account.
ii). It should be ensured that the payments are made only by DD/Cash. In
the event of payments are made through cheque (special case) it should be
ensured that the cheques received are realised.
iii). In the event of non-renewal of advertisement, display board etc., it should
be seen that the same are removed from the Railway premises.
iv). CCTV:
(a) Agreement has been executed properly and the charges due are
Correctly realised.
(b) Apart from the licence fee it should seen that Electrical Energy
charges, rent for the space provided etc. is realised periodically.
v). Imprest Account and special contingent fund (imprest) should be checked
and seen that the expenditure met from the same is permissible and
proper vouchers are kept.
vi). Conducted Tours/VIP's visit:
The accounts for the amount drawn for conducted tours arranged for
VIP's, Media etc. should be checked. It should be seen that proper
accounts for the amount spent are kept and the balance amount left if any
are promptly remitted to Railway Account.
vii). Register for Photographic materials:
(a) It should be seen that proper accounts are kept towards purchase
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of films and other materials used for photography.


(b) video/photo coverage for the official functions had the approval of
competent authority.

(XIII) MEDICAL BRANCH


1. PURCHASE OF MEDICAL STORES
i). ‘CMD’ at Hqrs. is authorised to procure Medical stores as per the
provisions contained in SOP. The purchase orders issued by the ‘CMD’ for
supply of drugs to the various Railway Hospitals, Health Units over the
Railway has to be checked.
ii). It should be ensured that the power for procurement and the financial
limit etc. are as per the rules.
iii). The P.Os. are issued as per the extant instructions and are signed only by
the authorised signatory.
iv). Amendment/Cancellation of P.Os. are issued only with the approval of
the authority who is competent to procure the Medicines initially.
v). The purchase orders are placed based on proper assessment of
requirement viz. indents from various units, and certified by Accounts.
vi). Proper action has been initiated in the event of failure of firm to supply the
drugs as per the conditions stipulated in the P.Os.

2. STOCK OF MEDICINES;
i). It should be seen that, the stock book of drugs is maintained up to date.
The receipt and issues agrees with the receipt and issue vouchers. Date of
expiry of Medicines are clearly indicated in the Register separately and no
drugs are kept in stock after the date of expiry.
ii). Action has been taken to dispose off the time expired medicine.

3. EXPENDITURE ON FAMILY PLANNING;


i). It should be seen that the expenses involved are correctly assessed and
debits transferred to the Ministry of Health.
ii). The special cash imprest drawn towards various family planning camps
are properly accounted for and balance amount if any remitted correctly.
iii). Target set by the Railway administration has been achieved and if not the
reasons should be analysed.

4. OCCUPANCY REGISTER;
i). The number of beds available and the occupancy position of the inpatients
of the health unit should be checked to ensure that the facilities provided
are properly utilised.
ii). Free treatment is given only to the eligible persons.
iii). In case of admission of Non-Railway patients for treatment, proper
sanction has been obtained and the prescribed charges collected in
advance.

5. DIET CHARGES:
i). In case of in-patients admitted in the Railway Hospitals who have availed
diet, (other than those who are eligible for free diet) necessary diet charges
at prescribed rates have been correctly worked out and sent to the
Personnel Department and Associated Accounts for recovery.
ii). If the diet is provided to the Non-Railway persons and the retired Railway
employees, the required charges are collected in advance and the accounts
are settled before the patient is discharged.
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6. WASHING OF LINEN:
It should be seen that proper records are maintained for the number
clothes handed over to the Dhabi’s for wash, date of issue and date of
return. Necessary agreements have been entered into and the charges
paid are correct and reasonable.

7. REGISTER OF M & P ITEMS, SURGICAL INSTRUMENTS, UNIFORMS,


LINEN ETC.:
i). It should be seen that necessary registers are maintained properly
separately for the above items.
ii). receipts and issues are posted correctly and supported by Receipt
Vouchers, acknowledgements for the issues.
iii). All the M & P items, surgical instruments available in the Railway Hospital
are in working condition and if not proper action has been taken to repair
or to dispose the same.
iv). There is no item kept as idle, without being commissioned.
v). Assets Register is kept upto date.

8. DIETICIAN ACCOUNT:
i). The imprest cash sanctioned and available with the dietician should be
checked and cash balance verified and certified.
ii). The nature of transactions met from imprest should be checked to ensure
that the items purchased, viz., vegetable, provisions etc. are at reasonable
rate and proper records (ledgers) are maintained.
iii). It should be seen that the items issued to the cook are according to the
scales and the number of meals, break-fast prepared daily are as per the
requirements certified by the Matron/Doctor as the case may be.
iv). Arrangements (Agreement) exist for supply of Bread, Milk, Meat etc.
should be verified and the requirements/indents placed are not in excess.
The charges paid are reasonable.
v). The Attendance Register and staff sanctioned for preparation and supply
of diet should be verified to ensure that there no excess staff.
vi). The stock available in the storeroom should be test checked and compared
with the ledger balance to ensure that there are no discrepancies.
vii). Tools and Plant Register should be verified and unused/empties are
properly disposed off.

9. LOG BOOK OF AMBULANCE VANS:


i). It should be seen that the movement of the vehicle is properly shown and
acknowledgements obtained.
ii). Charges wherever due are properly collected and remitted to Railways
Account.

10. INSPECTION NOTES-REVIEW:


The Inspection Notes of CMD and other Officers should be reviewed to see
that proper corrective action is taken wherever financial irregularities are
noticed.

11. CASH IMPREST:


i). The cash imprest should be verified and balance certified in the Imprest
Register.
ii). It should be seen that the amount spent from imprest are reasonable and
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correct procedures are followed.


iii). In case the medicines are purchased locally to meet urgent need, sanction
of the competent authority has been obtained for such purchases.

12. RAILWAY EMPLOYEES CONTRIBUTORY HEALTH SCHEME:


i). It should be seen that proper records are maintained and the prescribed
charges are collected correctly.
ii). The amount collected are properly remitted to Railways revenue. The
Money Receipt Book should be verified to see that the continuity of the
serial number is maintained. Acknowledgements for the amount remitted,
should be test checked with the amounts collected.
iii). The membership is renewed every year, No retired employee is allowed for
treatment unless they have become the members and charges at
prescribed rates are paid correctly every year.
iv). In case diet is provided to the retired employees under RECHS, the diet
charges are collected in advance or before the patient is being discharged.

13. REIMBURSEMENT OF MEDICAL CLAIMS:


i). All claims for re-imbursement of Medical claims processed in the CMD's/
Const's Office are properly justified and certified by the Medical Units
concerned.
ii). Relevant rules are correctly followed while processing such cases before
the same being sent to Accounts Office for payment.
14. In the case of inspection of Health Units, the inspecting official should
check whether test check at prescribed schedules on Plat Form stalls
(catering items) are done by the Health Inspector/ADMO and necessary
records maintained at their end.
15. Apart from the above checks, the following aspects should also be seen
during inspection:
i). Privilege passes, EDP, Medical Passes issued to the patients.
ii). Staff quarters.
iii). Leave records.
iv). Overtime/NDA records
v). Scooter/Cycle stand contract if any.
vi). Deputation of doctor on study leave.
vii). Honorarium/Fee if any received by doctors etc.

(XIV) INSPECTION OF EDUCATIONAL INSTITUTIONS

A) RAILWAY SCHOOLS: -
The Head Quarters as well as Divisional Accounts Office should undertake
as part of their inspection programme, the inspection of Railway Degree
College (Hqrs. only) Junior colleges and schools. The following items
should be seen especially during inspection of accounts of the Railway
Schools in addition to the items common to all the offices. Similar checks
should also be exercised in respect of Non-Railway schools if they are in
receipt of Grants-in-aid from the Railway Administration.

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1. CASH BOOK:
The maintenance of Cash Book, Receipts and Payments should be
checked. The Cash Book should be closed daily and attested by the
Principal or Head Master i.e. Head of the Institution. The Cash Book
should have been reconciled with Bank Pass Book and there should not be
any variation.

2. SPECIAL FEE AND TUITION FEE:


It should be seen that:
i). Special fee collected from the students are as per the instructions issued
by the Railway administration.
ii). In case tuition fees are collected from the students, the tuition fee
collected from the students should be remitted to Railways account. The
connected Money Receipts are to be checked, for the amount remitted.
iii). Tuition Fee and Special Fee collected should agree with the number of
students in the college/schools excluding those students who are
exempted from collecting such fees.

3. SCHOLAR SHIP:
Scholar ships received from State Governments, for SC/ST, BC students
should be verified to ensure that they are properly accounted and
distributed to all the eligible students.

4. SPECIAL FEE:
The special fee collected from the students are authorised to retain by the
college/schools and the expenditure should be spent in accordance with
the instructions issued by the DEO (District Educational Authorities) or by
the University in the case of Railway Colleges. The amounts spent for
various activities viz., Sports, Lab, Parents-Teachers Association etc.
should be checked to ensure that separate accounts are maintained, and
the expenditure agree with the vouchers for each transaction.

5. GRANTS-IN-AID:
In the case of Railway Colleges, it should be seen that the 'UGC' Grant
received has been properly utilised for the specific activity for which it was
granted. The records exclusively maintained for this purpose should be
checked.

6. MISC. CASH :
As the Railway schools and colleges are maintained by the Railway
Administration, the schools premises should not be utilised for any other
purposes unless it is authorised. Licence fee collected if any, for hiring
the premises should be remitted to Railways. Such instances if any
should be checked.

7. UTILISATION OF FUNDS:
Apart from special fee collected from the students, Educational
institutions are sanctioned funds from Railway Budget, funds from
Women's Organization etc. The inspecting official should check the
utilization of such funds, and the accounts.
8. The performance of the school/college with reference to the students
strength and pass percentage in different examinations conducted during
the academic year should be checked in order to ensure that the
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infrastructure facilities provided are properly utilised to achieve the


intended benefits.

9. REGISTER OF LIBRARY BOOKS:


It should be seen that the register is posted up-to-date and the receipts
have been correctly accounted for and proper system is adopted for issue
of Books to students. Necessary recovery has been made from the
students concerned in the event of loss of Books issued to them.

10. Tools and Plant Registers should be reviewed to ensure that all items are
accounted for and periodical stock-verification carried out.

B) INSPECTION OF TRAINING CENTERS:


As a part of the inspection programme, the Headquarters and Divisional
accounts office should include Training institutions in their annual
programmes. All the training institutions should be periodically inspected
at least once in three years (in case of small institutions). The following
items should be specially checked during inspection of accounts in
addition to the items common to all the units.

1. TRAINING PROGRAMME:
i). Training facilities and courses conducted during the year should be
reviewed to see that the training facilities provided by the Railway
Administration have been properly utilised.
ii). The number of courses conducted and the attendance of staff to
various courses should be checked. If the staff attended to each
course is less, the matter should be reported to the Head of the
Department and Personnel Branch.

2. TEACHING ALLOWANCE:
The number of instructors sanctioned and actual number of instructors
available should be checked. Teaching allowance to the instructors is
admissible only to those Training Centres as specified by Railway Board.
It should be seen that Teaching allowance is paid only to those instructors
who have been screened by the CPO and paid only to those who were on
deputation for a period not exceeding five years.

3. CATERING FACILITIES:
The facilities provided by the Railway administration to the trainees for
messing arrangements should be checked.

4. TOOLS AND PLANT:


Tools and Plant Register should be reviewed for proper accountal of all
items including items provided in the Hostel to the Trainees. Whether
periodical stock verification conducted or not should be checked.

5. LIBRARY BOOKS;
It should be seen that:
i). Whether Register is maintained for receipts of all Books with complete
details.
ii). Issues of Books to the Trainees should have proper acknowledgements.
iii). In the event of non-return of books/loss of books the cost of the books
should be recovered from the trainees concerned.
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6. The accounts of uniform, vehicles, passes should also be checked during


inspection.
The results of statutory audit are communicated through:
i) Specific reports of more important and serious irregularities discovered in
the course of Audit of Accounts, Departmental offices and Station Records.
ii) Audit Notes detailing minor irregularities discovered in the course of Audit
of Accounts office records.
iii) Inspection Reports showing the results of Audit of the initial records of
Executive offices. (Para 801-AI)
Communication received from Audit relating to the above will be in the
form of Audit Notes, Inspection Reports, Special letters and Draft paras.
Audit Notes and Inspection Reports will be in two parts.
i) Part I-Audit Notes will detail important irregularities noticed by the Audit
during the monthly test audit of the Accounts office.
ii) Part II Audit Notes will cover minor irregularities.
iii) Part I Inspection Report will show major irregularities noticed by the Audit
while inspecting the initial records of Executive offices and Part II will
show other cases.
iv) Special letters of specific Report may deal with important procedural
defects noticed during the monthly audit, which the Audit may desire it to
be brought through specific reports to be sent to the Executive Officer.
v) Any case that the Audit may consider to involve major financial
irregularities or procedural defects resulting in infructuous expenditure
may be taken up in the form of Draft Paras.
The Principal Director of Audit in Duplicate issues audit Notes, Audit
Inspection Reports and Special letters in duplicate. In the case of Inspection
Reports one copy of the same should be sent to the Executive officer whose office
was inspected for his remarks. The Accounts officer will examine the reports and
furnish remarks, which should be scrutinised carefully, and if further
clarifications are necessary, this should be called for from the Executive officer
before issue of final reply to Audit Officer. If the Audit Officer issues further
comments on remarks already furnished, this should be dealt with in the
Accounts Office independently where possible; if not, a reference should be made
to the Executive Officer to obtain the clarification sought for by the Audit Officer.

DISAGREEMENT WITH AUDIT:


If requested by the latter make a reference to the General Manager.
However, when the question is one of Accounts Procedure, the matter should be
referred to the Finance Directorate of the Railway Board. The General Manager
will be requested to obtain orders of Railway Board if the matter is beyond his
competence to decide. While making such references the Accounts Officer
should send a verbatim copy of the Audit objection and statement of his own
views. Audit Notes should be processed in the Accounts Office and reply issued.
Replies to Part I Reports, specific reports and important irregularities should be
sent to the Audit Officer as soon as possible. No formal reply to Audit Notes and
Inspection Reports Part II is required to be sent to the Audit. The disposal of
such Audit notes and Inspection Reports should be made available to the
Director of Audit whenever required.

TIMELINE FOR REPLY TO AUDIT REFERRENCE :


It is of utmost importance that all audit objections in one or the other form
mentioned in Para 2 above should be given immediate attention. Railway Board
have stressed the need for expeditious disposal of all audit objections and
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directed that there may not be any outstanding reports of over 3 years old. By
ensuring that even at the initial stages Audit objections are dealt with promptly
completely and at adequate level, the need for Audit Officer taking up the same
subject in the Principal Officer's Meeting and at Railway board's level could be
reduced. In order to ensure their quick disposal, a proper record should be
maintained in the Accounts Office. The Register, wherein should be entered all
the Audit Notes, Inspection Reports and Special letters with details of action
taken, should be periodically reviewed to see whether final reply has been issued
in individual cases. If the action is pending with the Executive Officer, the
Officer concerned should be contacted or addressed to furnish immediate reply.
If the action is pending with the Accounts Office, the reports should be put up to
the Accounts Officer with remarks for delay in the issue of reply. If no finality is
reached even after correspondence, the Accounts Officer should arrange for a
tri-partite meeting between Accounts, Audit and the Executive Officer concerned
after fixing the date in consultation with the Executive Officer concerned and
Audit Officer. The Audit Officer's acceptance of the remarks offered during the
discussion should be recorded in the minutes of the meeting and where further
clarifications are called for, these should be obtained from the Executives and
furnished to the Audit Officer.
Executive Officer should also maintain a register showing the action taken on
each audit objection. This register should be reviewed by the Executive Officer
also to ensure that effective actions have been taken for the disposal of all audit
objections. The Accounts Inspection staff should specifically examine the
effectiveness of the action taken and deficiencies noticed should be suitably
taken up.

MINIMIZING THE NUMBER OF OBJECTIONS:


The draft inspection report should be discussed with the Executive Officer
concerned before making it final. This is known as intra-conference. Such steps
should also be adopted in minimizing the number of objections and also reduced
unnecessary work. The following steps, therefore, should be taken in this
direction.
i). The Audit Officer should discuss draft Inspection Report and Executive Officer
after the inspection is completed. It is known as exit Conference.
ii). As per extent instructions, replies to the Draft Audit Reports i.e. 'DOS' should be
sent to the Audit Officer within 30 days after the inspection is completed. This
will enable the Audit to finalise the reports and to minimize the number of paras.
iii). The Executive Officers are expected to verify the facts and in case they are
correct and complete they should record their acceptance in writing. If it is
otherwise, they should amplify the position to the Audit Officer in writing so that
the Audit view may be based on complete facts.
iv). In the case of minor objections, the Executive Officer concerned should take
remedial action promptly and the fact that such an action is taken should be
noted in the minutes of the discussion so that these objections may not appear
in the reports.
v). In regard to cases where regularisation by higher sanction is necessary, these
should be obtained quickly. In the event of any delay in obtaining the sanction,
the Audit may be advised of the position so that they may consider the inclusion
of the item in the report. In any case, the requirement of higher sanction should
be discussed in the meeting and the matter should be settled.
vi). If the Audit Officer has objected to any payment of recurring nature and if the
views are acceptable to the Accounts Officer, he should place the amount under
objection, the payment being treated as provisional pending receipt of formal
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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

orders from higher authorities or settlement of the objections by the Audit.


A copy of the minutes of discussion held between Executive Officer and Accounts
Officer should be furnished to the Headquarters office for information.

DRAFT PARAS:
All the important cases coming to the notice of Audit which Audit considers to be
fit case for incorporation in the C & AG's Report for Presentation to Parliament
will be brought to the notice of Railway administration in the form of Draft Paras.
A procedure has been evolved by the Railway Board according to which before
any item is taken as Draft Para, the Principal Director of Audit would generally
address, D.O. letters to the Heads of Departments/FA & CAO forwarding a
statement pointing out the irregularities noticed and asking for verification of
facts and figures. The board for replying to these references has laid down a time
limit of four weeks. In case, where the verification of the facts and figures would
involve reference to a number of divisions and other authorities and would
require more time for verification, the PDA should be addressed to extend the
time limit suitably. FA & CAO has to co-ordinate with PHODs concerned as well
as Railway Board for speedy disposal of Draft paras.
This procedure would enable the Heads of Departments/FA & CAO to devote
adequate attention to the points raised by the Principal Director of Audit and
reduce in a way the number of formal Draft Paras to be issued. It is therefore,
important that adequate attention should be paid to such references.
Draft Paras are generally on the outcome of earlier audit notes or correspondence
from Audit. To deal with these draft paras, Railway Board have laid down
procedure. According to which Principal Director Audit will prepare draft paras
and addressed to General Manager, sending copies thereof to the Railway Board
(EDA) and the DAI (Railways). Copies of the Draft Paras will also be endorsed to
the FA & CAO and concerned PHODs. Railway Administration should give their
final reply after consultation with Board within a period of 8 weeks. The reply
should be sent to the Board within 5 weeks from the date of receipt of Audit
Paragraphs so as to allow time for further enquiry and correspondence within the
overall period of 8 weeks within which a final reply has to be sent to the Principal
Director of Audit.
Keeping the Boards directives in view, these draft paragraphs should be dealt
with promptly and comprehensively at the highest level possible. As the General
Manager is required to reply to the Draft paras, it is necessary for the PHODs
concerned to personally examine every detail concerning draft paras so that
replies may be well informed, complete and effective particularly in regard to
facts which might have influenced the authorities concerned at the decision
making stage. At the Divisional level, the Divisional Railway Manager should
nominate a JAG to co-ordinate the collection of information at the divisional
level. It will be the responsibility of the Divisional Officer primarily concerned
with the Para to verify the facts and figures furnished therein. The Senior
Divisional Finance Manager/DFM should also give highest priority in regard to
verification of factual information pertaining to Draft paragraphs.

POINTS TO BE NOTED WHILE DEALING WITH DRAFT PARA:-


While dealing with the Draft Paras, the following points should be borne in mind
and complied with by all concerned;
i). It should be ensured that all important and pertinent facts having a direct
bearing on the case, and the extenuating circumstances, if any, which if not
taken cognisance of may lead to incorrect appreciation of the case, are brought
out in the supplementary remarks to the Draft Paras.
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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

ii). While pointing out the inaccuracy of the figures, the reasons as to why the
figures are considered incorrect and what in the opinion of the Administration
should be the correct figures, should be clearly furnished. As to the facts also, a
similar procedure should be followed, furnishing the orders, instructions, etc., if
any issued on the subject.
iii). Procedural lapse pointed out should be verified and, if approved, the correct
procedure introduced. The responsibility for the lapses pointed out should be
fixed and action taken to prevent recurrence indicated. Progress made regarding
disciplinary action, if any taken should be indicated. The circumstances, in
which deviations/lapses were allowed to occur, should be specially examined.
iv). Where recoveries or over-payments are the subject matter for comment, action to
recover the amount and the recoveries made so far should be furnished.
v). It is also necessary to examine, where applicable, the financial implications, if
the Audit contention is conceded. Where more than one alternative is possible,
the relative economics should be gone into carefully.
vi). Where necessary, the points should be discussed with the Local Audit Officer,
along with the Accounts Officer.
vii). At every stage, the associated Finance/Accounts Officer should be consulted and
the Draft Paras, scrutinised conjointly, the comments, etc., duly vetted by the
Associated Accounts Officer with reference to all available records.
viii). In order to bring down the outstanding Draft Paras and furnish satisfactory
remarks to Principal Director of Audit, frequent review meetings with the
concerned HODs should be arranged.
THE FOLLOWING TIMETABLE SHOULD BE OBSERVED FOR DISPOSAL OF
AUDIT PARAS.
i). Despatch of the copies of paras by the FA & CAO to all HODs etc. 2days on
receipt in Accounts Office.
ii). Verification of facts and figures by the Executive Officer primarily concerned with
Para and submission of remarks to FA & CAO = 3 weeks.
iii). Associate Accounts vetting and scrutinize the remarks of Executive = 1 week.
iv). Scrutiny and to obtain GM's approval = 1 week.
v). Finalisation of the reply and to obtain Railway Board's approval and forwarding
to Railway Administration remarks to Principal Director of Audit = 3 weeks.
vi). Discussion with PDA including correspondence, if any should be completed
within the over all period of 8 weeks.
As the overall limit of 8 weeks cannot, at any rate, be exceeded, it is necessary
that the queries from Railway Board should be attended to on 'TOP PRIORITY'
basis.

(B) ACCOUNTS INSPECTION REPORTS: -


The action required to be taken after the inspection is over has been indicated.
After the discussion of the preliminary report with the Head of Office is
completed, the inspection report should be prepared embodying all irregularities
and objection for which no satisfactory explanations were forthcoming during the
discussion. The inspection report should be issued finally as soon as possible
after the return of the Inspection party from the inspection. It should be noted
that issue of the report in respect of Main office, which was inspected, should not
be delayed just because the inspection of subordinate is not completed.

HOW INSPECTION REPORT IS PREPARED:


The reports should be prepared in two parts i.e., Part I and Part II. These should
again be sub-divided into non-Personnel and Personnel. Particular care should
be taken about the language and tone of the report. All objections should be
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stated in simple and polite terms.


Part-I: This should contain points of major importance only which may be held
to include objections involving recurring over payments due to wrong fixation of
pay, grant of leave and T.A. under a wrong set of rules etc. and any other
irregularities which are required to be regularised under competent sanction.
The remarks for individual paras should be called for from the Head of the Office
Inspected.
Part II: All other items, which have not figured in Part I should be included in
Part II. The disposal of paras in Part II may be left to the Head of Office
inspected. He should however, give suitable remarks as to the action taken by
him against each item in the report before filing it. The Accounts Officer should
during his next inspection, review the remarks recorded on the Executive officer's
copy of the Part II of the report and satisfy that suitable action has been taken on
the points raised therein.
Part I of the Inspection Report should be prepared in Triplicate. One copy will be
retained in the Accounts Office as Office copy and Two copies sent to the
immediate superior of the Officer whose office was inspected, with a request that
one copy may be forwarded to the Head of the Office Inspected for remarks. In
the case of Divisional Office, all Part I Inspection Reports should be sent to the
divisional officers personally. The officer whose office was inspected should
return one copy with as complete replies as possible through his immediate
superior to the Inspecting Officer. Before forwarding the replies, the immediate
superior should satisfy that they are correct and complete and where necessary
should have them amended or amplified to avoid further correspondence. The
remarks so received should be scrutinised in the Accounts Office and further
action that may be necessary taken under the orders of the Accounts Officer. If
any cases of serious irregularities come to light in the disposal of Part I of the
Inspection Reports the details thereof should be entered in the "Register of
Serious Irregularities" and the progress of their disposal carefully watched.

Part II of the Inspection Report should be made out in duplicate. One copy
should be retained as office copy and other copy sent direct to the
officer-in-charge of the office inspected with the request that the irregularities
pointed therein may be regularised and the recurrence of such irregularities
guarded against. Any items of objection, which has a bearing on the work of the
Accounts office, should be noted down and pursued with the sections concerned.
Procedure for Test-Check:
The Test check should, apart from verification and thorough examination of facts
and figures embodied in various documents brought under test check, be
directed to an intelligent scrutiny to find out whether the clerk(s) understand
their duties and rules governing them and do the work allotted to them diligently
and whether there is any tendency to do the work casually. Test check should
particularly be conducted at least once in a month by SO and all officers. The test
checks should not be of routine nature rather they should focus on system
improvement, procedural lacuna and lapses. The underlying idea should be
efficient disposal without any violation of rules and procedures. The checks
should also reflect the updated skills of the officer.

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

- [PARA 803 A1]


Recording of results of Test- Check:-
The result of test check should be recorded systematically in a manuscript
register in the form given below:-
SRN Item of Extent of Test Particulars of Name of the Result of Whether the
O. work test check prescribed vouchers elected SO/SSO (A) who Test discrepancy in
checked for test check had test check col.6 has been
checked the pointed out by
item the supervisory
staff
2 3 4 5 6 7

The test check register should be opened separately by each official; the test
check is required to be made in accordance with these orders. The entries made
in the register should contain adequate particulars so as to facilitate the
identification of the entry/voucher subjected to test check and entry/voucher
should be endorsed “Test checked” under the dated initial of the official
conducting the test check.
The exact nature of the discrepancy noticed should be briefly indicated in the
appropriate column of the test check register. If the discrepancy calls for a
lengthy note, the same should be given as a separate note for further disposal
being done on the connected file(s) and a cross reference to this note should be
recorded in the relevant column of the Test Check Register.
The observations as a result of the test check should be clearly indicative of the
appraisal by the checking authority of the quality of performance of the clerks
whose work came up for test check.
Test- Check of registers:
Another important item of test check is the inspection of different registers by the
Gazetted Officers. The intervals at which different registers maintained in
Accounts Offices should be put up for inspection by Officers.
5.3)Periodicity of submission of Test- Check of register to Officers:
Every test checks register should be provided with an inspection sheet below the
front page indicating the month of test check, date on which put up and the date
reviewed by the Officer concerned. The test check registers of Section Officers and
Senior Section Officers should be put up to the Branch Officer on the 10th of each
month indicating the test check done on the work of clerk in the preceding month
for review and orders, where necessary, by the Branch Officers.
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Sr.DFM's Office , West Central Railway , Bhopal Process Manual

ACTIVITY/ RESPONSIBILITY MAPPING CHART


SR. AA NAME OF
Scope Of Work Dept. Supervisor
No. Code A.A.

Inspection of various offices of BHOPAL Division, Preparation,issue &


1 ALL DEPTT. A1 B1 M.P.MISHRA
closure of reports & review of replies.

2 To deal with all reports Issued by; Divisional Audit Officer:-

(A) Part II Audit Inspection Report ALL DEPTT. A1 B2 Hemant

(B) Part II Audit Note ALL DEPTT. A1 B3 James Tiwari


( C ) Special Letters,Draft Para,Part I Audit Inspection Report,Rough Audit
ALL DEPTT. A1 B3 James Tiwari
Note(RAN),Part I Audit Note
To submit monthly, Qtrly, Half yearly and Annual returns to HQrs & Effy
4 ALL DEPTT. A1 B3 James Tiwari
section in the first week of every month.
To Verify all settlement cases & record recoveries outstanding if any brought
ALL DEPTT.
out in Insp. Reports:-
(A) Part II Audit Inspection Report ALL DEPTT. A1 B2 Hemant

(B) Part II Audit Note ALL DEPTT. A1 B3 James Tiwari


Special Letters,Draft Para,Part I Audit Inspection Report,Rough Audit
5 ALL DEPTT. A1 B3 James Tiwari
Note(RAN),Part I Audit Note
Part I and Part II Account Inspection Report ALL DEPTT. A1 B1 M.P.MISHRA
Railwy Board Inspection Report(Part I and Part II),HQ Inspection Report
ALL DEPTT. A1 B3 James Tiwari
Part I and Part II
Hemant
To submit position of outstanding audit reports, accounts inspection reports
6 ALL DEPTT. A1 B1,B2,B3 ,James Tiwari,
to Sr. DFM as & when called
M.P.Mishra
Various
7 To attend tender opening in various offices A1
Offices
To forward Inspection notes, Line notes of HQrs Officers to concerned
8 divisional officers, RLY Bd Inspection report (Part I and Part II),obtain ALL DEPTT. A1 B3 James Tiwari
remarks, verify and close the same
9 Related with
Corrospondence related with RTI ,HQ,DRM etc. A1
Insp. Section

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INSP SEC CHPATER 07 Page 2 of 1 Rev 00 01.01.09 Approved by:________


SR.DFM'S OFFICE, WEST CENTRAL RAILWAY BHOPAL Annexure - 'A' PROCESS MANUAL

LIST SHOWING INSPECTIONS UNITS OF BHOPAL DIVISION

ANNEXURE - 'A'
(I) Engineering Department
Sr.DEN(N)/BPL ii. DEN(S)/BPL iii) DEN(C)/BPL iv) XEN(MD)/BPL
a) AEN/Guna a) AEN/HD a) AEN(M)/BPL a) AIE
b) AEN/SFY b) AEN/ET b) AEN/Bina
c) CIOW/Guna c) CIOW/ET c) IOW(M)/HBJ
d) CIOW/SFY d)CIOW/HD d) CIOW(M)/BPL
e) PWI/Guna e) CPWI/Y/ET e) CIOW/Bina
f) PWI/SFY f) CPWI/M/ET f) CPWI/N/BPL
g) CPWI/HD g) CPWI(S)/BPL
h) PWI/Bina

(II) S&T Department


i) SR.DSTE(M) BPL ii.. Sr.DSTE(M)/BPL
iii) DSTE/ASTE (M/W)
DSTE(N)/BPL iv)( ASTE/PRS/BPL ) controlling
Controlling under
under Dy.CSTE/PRS/CSTM.
Dy.CSTE(M/W)/NGP
a) ASTE/N/BPL DSTE(S)/BPL a) CTI(M/W)BPL a) CTI/PRS/BPL
b) CSI/BHS a) ASTE(S)/ET
c) CSI/Bina b) CSI/HD
d) CSI/Guna c) CSI/ET
e) CTI/Bina d) CSI/BPL
e) CTI/ET
f) CTI/HBJ
g) CTI/BPL

INSP SECTION REV:00 01.01.09 ANNEXURE - A


APPROVED BY__________
SR.DFM'S OFFICE, WEST CENTRAL RAILWAY BHOPAL Annexure - 'A' PROCESS MANUAL

III Electrical Department IV Security Department


i) Sr.DEE(G)/BPL ii) Sr.DEE(TRD)/BPL iii) Sr.DEE(TRO)/BPL DSC/BPL
a) AEE(G)/BPL a) AEE(TRD)/HD a) AEE(TRO)/BPL a) IPF/BPL
b) AEE(G)/ET b) AEE(TRD)/Bina b) LF/BPL b) SIPF/HBD
c) EF(M)/HBJ c) DEE/TRD/ET c) LF/Bina c) ASI/PF/BPL/R
d) EF(M)/BPL(PRS) d) CTFO/Bina d) LF/ET d) IPF/BIN
e) EF(M)/Bina e) TFO/BAQ e) CTFO/Tripshed/BPL e) SIPF/BHS
f) Sr.EF(M)/PY/ET f) TFO/BHS f) TFD/Tripshed/ET f) ASI/NSZ
g) HT & R/BIN g) CTFO/NSZ g) ATFO/Tripshed/Bina g) IPF/Guna
h) EF(M)/HD h) CTFO/RC/HBJ iv) Sr.DEE/TRS/ET h) IPF/Stn./ET
i) EF(M)Guna i) TFO/OBDG a) DEE/TRS/ET i) SIPF/HD
j) Sr.EI(M)/SFY j) ATFO/KNW b) AEE/TRS/ET. j) IPF/YD/ET
k) SR.EF(M)/BPL k) TFO/Khirkiya
l) EF(M)/NY/ET l) TFO/Banapura
m) EF/TL/ET
n) Sr.EF(TL)/BPL
V Mechanical Department VI Operating Department VII Sefety Department
i) Sr.DME (P, C&W)/BPL ii) Sr.DME(D)/ET i) Sr.DOM/BPL
a) AME(HQ)/BPL a) DME(D)/ET a) DOM/BPL i) DSO/BPL
b) AME(G)/ET b) AEE(D)/ET b) AOM/BPL a) TI/HD(W)
c) CWS/Bina c) Sr.AM/ET b) TI/East/HD
d) CWS/BPL d) SM/GAZ/BPL c) TI/South/BPL
e) CWS/PY/ET e) AM/Guna d) TI/N/BPL
f) CWS/SL/ET f) Control Office(CHC)/BPL e) TI/Bina
g) All SMs/ASMs/ under
g) CWS/NY/ET Sr.DOM/BPL's Control f) TI/Guna
h) ALF(D)/NSZ h) CYM/ET
i) LF/Guna i) CYM/BIN
j) CWS/Guna j) CYM/NSZ

INSP SECTION REV:00 01.01.09 ANNEXURE - A


APPROVED BY__________
SR.DFM'S OFFICE, WEST CENTRAL RAILWAY BHOPAL Annexure - 'A' PROCESS MANUAL

VIII Commercial Department IX Personnel Department X Medical Department XI Pass/PTOs accounts, Dead Stock,
Sr.DCM/BPL Sr.DPO/GA/BPL Stationery, Imprest etc. of:-
a) DCM/BPL DPO/BPL I) CMS/BPL/NSZ
b) ACM/Catg/BPL APO/BPL a) DMO/HBJ a) Sr.DFM/BPL
c) ACM/Coaching/BPL PRO b) CHI/NSZ b) DC/BPL
d) CCI/HD XII Stores Department c) CHI/BPL/Station c) Asstt.DC/ET
e) CCI/ET
f) CCI/BPL DCOS/EA to DRM/BPL II) CMS/NY/ET
g) CCI/BIN ACOS(ELS)/ET a) DMO/Station/ET
h)CCI/Guna ACOS/D)/ET b) CHI/NY/ET
i) Base Kitchen/ET
III) CMS/Bina
XIII Schools XIV Pass/PTO Accounts a) CHI/Bina
a) Railway Primary School(H)BPL b) DMO/Guna
b) Railway H.S.School (NY)/ET a) SO/GRP/ET
c) Rly. Primary School 12 block/ET b) SO/GRPBPL XV RRB/BPL
d) Railway Primary School(N) Bina c)SO/GRP/BIN XVI RCT/BPL
e) Railway Primary School(Eng) Bina

INSP SECTION REV:00 01.01.09 ANNEXURE - A


APPROVED BY__________
SR.DFM’s Office, West Central Railway, Bhopal Process Manual

Annexure -B
Annual Accounts Inspection Program for the year of 2009-2010 for the Bhopal/Division

Inspection
Sr. Name of Unit Period of Inspection done to 08-09 proposed by Man Days Days Remarks

No. Inspection Audit Accounts Audit Accounts Reguired


1 Sr.DCM/BPL 1 07-08 05-06 oct&nov.09 April 09 3*3=9 3
2 M S.Bina 1 06-07 06-07 Feb. 10 Sep. 09 3*3=9 3
3 Dy.CE.XEN.BRG/BPL 1 *** *** July. 09 Jan. 10 3*3=9 3
4 SS/ET 1 08-09 07-08 *** DEC.09 3*3=9 3
5 CMS/NSZ/BPL 1 07-08 06-07 Jan.&Feb.10 Aug.09 3*3=9 3
6 SS/ET 1 **** 06-07 Oct.&Nov09 May.09 3*3=9 3
7 SrDEN(co)BPL 1 07-08 06-07 May.09 March.10 3*3=9 3
8 SS/BPL 1 **** 06-07 *** Nov.09 3*3=9 3
9 DRM(p)BPL 1 07-08 05-06 Dec.09 June.09 3*3=9 3
10 BTC/ET 2 **** **** March.10 July.09 3*2=6 2
11 CPW/(N)/HD 2 **** 04-05 *** Feb.10 3*3=9 3
12 SSE(Tell)GUN 3 07-08 04-05 **** May.10 3*2=6 2
13 ADEN/BPL 2 06-07 05-06 May/June.09 Dec.09 3*2=6 2
14 ADEN/GUN 2 06-07 05-06 *** April.09 3*2=6 2
15 SMM(Els)ET 2 **** 04-05 *** June.09 3*2=6 2
16 DMO/HD 3 05-06 03-04 March.10 Aug.09 3*1=3 1
17 SE/Sig/Tel/SVPI 3 **** **** **** Oct.09 2*2=4 2
18 SSE(M)El/SVPI 3 **** **** **** Sep.09 2*2=4 2
19 SSE(W)NY/ET 2 04-05 **** **** Aug.09 3*2=6 2
20 AEE/G/ET 2 **** **** **** Nov.09 3*2=6 2
21 DMO&CHI/SFY 3 **** **** **** July.09 3*2=6 2
22 SSE/PWI(N)/BHS 2 **** 03-04 **** Oct.09 3*3=9 3
23 CHC(Control)BPL 2 **** **** **** May.09 3*2=6 2
24 SSE(M)EL/SYF 3 **** **** **** Feb.10 2*2=4 2
25 SSE(TRD)ET 2 06-07 03-04 **** Jan.10 3*2=6 2
26 SSE(Loco)ET 2 **** **** Jan.10 July.09 3*2=6 2
27 CYM/NSZ 2 **** **** **** Sept,09 3*2=6 2
28 SEE(TRD)NSZ 2 **** 04-05 **** Oct.09 3*2=6 2
29 Rly.School/BINA 3 **** **** **** Nov.09 2*2=4 2
30 SM/Barkheda 3 05-06 04-05 **** Dec.09 3*1=3 1
31 DMO/HBJ 3 **** **** Jan.Feb.10 July.09 3*1-3 1

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SR.DFM’s Office, West Central Railway, Bhopal Process Manual

32 SM Sukhi Sewaniya 3 **** **** **** Jan.10 3*1=3 1


33 SM/BRRG 3 **** **** **** 10-Mar 2*2=4 2
34 IOW/NSZ 2 **** **** **** Feb.10 3*2=6 2

_____________________________________________________________________________________________________________________

INSP SECTION CHAPTER 6 PAGE 1 OF 1Rev : 00 01.01.09 APPROVED BY________


Document No: SV
January 01, 2009

STOCK VERIFICATION CELL

PROCESS MANUAL

Office of Sr. DIVISIONAL FINANCE MANAGER


WEST CENTRAL RAILWAY, BHOPAL

Telefax: : 0755-2457138
Railway Phone : 5070
E-mail : isabpl@rediffmail.com

Compiled By CO-Ordinated by CO-Ordinated by Reviewed by Approved by

(A.K.AGRAWAL) (D.N.DWIVEDI) (Rajeev Shrivastva) (R.M.DESHMUKH) (HIRA BALLABH)


SR.ISA SSO/ISO ADFM-II ADFM-III SR.DFM
CONTENTS

Rev. No/Date No. of


Section/ Ref Title
00 01 02 Pages

1 Abbreviations 01

2 Introduction 02

3 Sources and References 01

4 Scope of work 01

5 Sectional Procedure 21

6 Calendar of Events 01

7 Flow chart voucher check 01

Activity and responsibility


8 01
chart

9 Code Allocation staff sheet 01

10 Organization chart 01

11 Measurable Parameter 01

12 Monthly Report 01

List of Records 01
13

Section Process flow chart 01


14

15 Changes to Manual 01
Sr.DFM’s Office West Central Railway Bhopal Process Manual

ABBREVIATIONS
SR.
No. Term Expansion
1. ASV Accounts Stock Verifier
2. CAP Capital Account
3. CC Completion Certificate
4. CR Completion Report
5. DFM Divisional Finance Manager
6. DS Dead Stock
7. HYAR Half Yearly Arrears Report
8. ISA Inspector of Stores Accounts
9. MAS Material At Site Account
10. MPR Monthly Progress Report
11. NR Narrative Report
12. REV Revenue
13. Sr. ISA Senior Inspector of Stores Account
14. SR.DFM Senior Divisional Finance Manager
15. SV CELL Stock Verification Cell
16. SV SHEET Stock Verification Sheet

S.V. Section chapter 1 Page 1 of 1 Rev:00 01.01.09 Approved by _____________


Page 1 10 Org Chart

ORGANIZATIONAL CHART

SR DFM

DFM/ADFM

SR.ISO(CO.) SR.ISA SR.ISA SR.ISA


A1 A2 A3 A4

ASV ASV ASV ASV


(B1) (B2) (B3) (B4)

SV SECTION CHAPTER 10 : REV: 00 01.01.09 PAGE 1 OF 1 APPROVED BY______________


Page 2 10 Org Chart

SV SECTION CHAPTER 10 : REV: 00 01.01.09 PAGE 1 OF 1 APPROVED BY______________


Sr.DFM’s Office West Central Railway Bhopal Process Manual

MEASURABLE PARAMETERS

SR Activity Time taken/given for Disposal


NO.
1 S V Sheet & N/Reports Issued immediately to stock holders after
stock verification and surprises check of that
unit
2 MPR 5th of the following month

3 Half Yearly Arrears reports 5th of the July & 5th of Jan. pertaining to the
Half year ending 30th June & 31st Dec

IMPORTANT NOTE: It is to be ensured by the concerned section in charge


that the updating of system is take place within barest minimum time and any
revision, on account of new rule/instruction from Rly Bd/ HQ’s warrants
revision of process manual, is taken place within one week of receipt of letter.
However, to ensue the task “On EVERY 1ST DAY OF THE MONTH THE
SECTIN INCHARGE WILL REVIEW THE SYSTEM AND ENSURE THAT ALL
UPDATION /REVISION DURING THE MONTH ARE TAKEN PLACE.”

____________________________________________________________________________

S.V. Section chapter 11 Page 1 of 1 Rev:00 01.01.09 Approved by _______________


SR.DFM'S OFFICE WEST CENTRAL RAILWAY BHOPAL PROCESS MANUAL

MONTHLY REPORT (STOCK VERIFICATION BRANCH)


Month:

Monthly Processed Status


S. No. Activity Target Period of Clearing Remarks, if any
Processed Processed
Total Recd
In Time not in time

SR.ISA(CO.)/BPL SR.DFM/BPL
(Name & Seal) (Name & Seal)

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LIST OF RECORDS
Section: ____________________
STOCK VERIFICATION CELL
Record No.
S. No. Record Name Format No., if any Records Custodian Retention Period
Program Registers AC/BPL/ISA/PROGRM/01 S 3206 Sr.ISA CO-ORD 15 year
1

2 Field Book Register AC/BPL/ISA / FILEDBOOK/02 S 3213 Sr.ISA/ ASV’s 15 Years

3 Stock verification sheet AC/BPL/ISA/ SV SHEET/03 AU68B & Sr.ISA/ ASV’s 15 Years
AC61FS1260
4 Completion Reports AC/BPL/ISA/CR/04 S 3251 ASV 15 Years

5 Compilation Certificate AC/BPL/ISA/COMP CERT/05 S 3250 ASV 15 Years

6 SV Sheet & N/R AC/BPL/ISA/SVS NR/06 S 3261 Sr.ISA/ ASV’s 15 Years

7 Weekly Dairy AC/BPL/ISA/WEEKLY/07 AC/67B ASV 15 Years

AC/BPL/ISA/LOT REG/08 Sr.ISA CO-ORD 15 Years


Lot register for lots sold
8 and delivered

AC/BPL/ISA/RECOVERY/09 Sr.ISA CO-ORD 15 Years


9 Recovery register

AC/BPL/ISA/TESTCHCK/10 Sr.ISA CO-ORD 15 Years


Register of test check and
10 work done by ASVs.

NOTE: Before destruction of above records (in case of retention period is over), SR.DFM ‘S prior approval will be required.
Further, a circular may be issued to all concern asking them to withdraw any record from destruction if required by them
for any purpose.

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Sr.DFM’S OFFICE , West Central Railway Bhopal Process Manual

SECTION PROCESS FLOW CHART

Collect information regarding Decide frequency of Stock


existing as well as new units from Verification according to Nature of
Executives i.e. name of Stock for e.g.
StockHolder, Nature of Stock, Qty. 1. Dead Stock – Once in 3 years
Nos. etc. 2. Revenue Items – Once in 2
years
3. MAS A/c – Once in a Year
4. Fueling Point – Once in 4
Distribution of Annual Stock Months
Verification Programme to the 5. Catering Unit – Once in 4
Accounts Stock Verifiers
Months
6. Staff Canteen – Once in a year

Field Stock Verification by ASV’s

Approval of Annual Stock Verification


Programme by FA & CAO (S&W)

Preparation of SV Sheets /
Narrative Reports and conveying Remarks from Executives
to the Executives of the
concerned Units

Scrutiny of Remarks by Sr.


ISA, put upto DFM for closure
or seeking clarifications

Advice to Concerned Executive


regarding closure of SV Sheet or
further clarification or advice of
recovery/fixing of responsibility as the
case may be.

Submission of MPR & HYR to


Headquarters

END

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Sr.DFM’s Office, West Central Railway ,Bhopal Process Manual
CHANGES TO PROCESS MANUAL

Amendment New
Date Section Particulars of Amendment
No. Rev No.

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Sr.DFM’s Office West Central Railway Bhopal Process Manual

INTRODUCTION:

Verification of stock is an important tool to prevent inefficient lock up and


leakage of scarce resources. The success or otherwise of the stock verification depends to a
large extent on the knowledge and consequently the efficiency of the staff involved.
In any organization, Stores represent money. Any imprudent, inefficient
act of buying and accumulating of huge stocks would result in unnecessary locking up of
CAPITAL, which otherwise could have been used for other services. Inventories of raw
materials, stores and spare parts and the value of unfinished jobs in Railway workshops
represent essential but unproductive Capital Investment. Efficient Inventory management
requires lowest stock level with highest service levels. While various phases of paper
work connected with inventory control have been mechanized; the human element
connected with physical verification of stores by stock verifiers to see whether they accord
with Books or not, can not be done away with. This phase of work is essential in achieving
the larger objectives of inventory control.
Indian Railways as the largest Govt. undertaking needs to maintain
huge inventories involving thousands of Crores as capital. Hence, a systematic
management at all levels is imperative. The basic object of material management is to keep
the investment or inventories to the barest minimum and ensure availability of material of
the right quantity and quality at the right time and at the right place. The effectiveness of
inventory control is judged with reference to the Turn-Over Ratio.
During the verification whether the departmental regulations
governing purchase, receipt and issue, custody, condemnation, sale and stocktaking are
rigidly followed, any important deficiency in the quantities of stores held or any grave
defects in the system of control will also be highlighted.
Annually, a statement of stores transactions is submitted to the Railway
Board in Form S-3001 wherein among other details of stores transactions, FA&CAO has to
give a certificate whether (i) the materials accord with the description and specification
shown in the Cards, (ii) the quantities in the Transaction Register of the accounts office
have been compared with the quantities in the Bin Cards of the Stores Department and the
latter has also been proved during stock taking of the year and (iii) if this has not been
completely done then the extent of comparison made of stock-taking and correction of
books as a result thereof.
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The Appropriation Accounts of the Railway are prepared for Presentation


to the Parliament and for scrutiny of the Public Accounts Committee. Among other
statements and annexure to the Appropriation Accounts, the following information of
stores accounts, is also sent.
i) Statement of Stores transactions (S-3001)
ii) The result of stock verification and of revaluation of stores and
iii) The agency employed for such verification and revaluation.
With a view to assisting the Head of the department in furnishing of the
above certificates/statements, the stock Verification by Accounts department is undertaken
in addition to the departmental stock verification
In pursuance of the above, the extent and scope of inspection and
verification are as varied and complex as are the wide and varied ranges of stores and
accounts provided for the peculiar needs of the Railway. Within its ambit, the duties of
verification staff comprise not only the physical verification of stores and inspection of
Accounts in all its complicated aspects, but also the intelligent and efficient scrutiny of the
different shades of stores transactions and the relevant Accounts, which are built up on the
strength of admissible vouchers. In the course of inspection and verification of stores and
taking notice of such accounts and vouchers as are relevant to the transactions, the
verification staff have to be keenly alive to the responsibility and the trust reposed in them,
as the representatives of FA&CAO, who is charged with the duties and responsibilities of
effective supervision, direction and control of Railway Finances.
The ISAs/ASVs play a major role in detecting various short comings on the
part of store holders during their periodical verifications and inspections by conducting
qualitative analysis and high-lighting them promptly to the management through
Narrative/Special Reports. This helps the top management to generate inventory
consciousness among the store holders and controlling officers. In addition to this, the
important irregularities detected during the course of special/surprise checks are
periodically brought to the notice of concerned HODs for taking remedial measures and
appropriate action at their level.
The stock verifiers are also supposed to educate the executive on proper
maintenance of accountal and proper system of book keeping.

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Sources and References:


All the Codes and Manuals issued by Railway Board have Presidential sanction
therefore; any violation of these provisions would be treated as an irregularity. The
circulars issued by Railway Board are extension of codal provisions; therefore, they bear
the same sanctity.
In addition to the above documents, there are Manuals, which have been issued on
particular subject by Zonal Headquarters with the approval of FA&CAO. Some of the
specific instructions contained in these manuals may vary from Zone to Zone. The
difference between Codes and Manuals is that the codes give rulings and authority i.e.
what to do and what no to do, whereas the Manuals provide the procedure of doing
things.
In this Process of framing document on Stock Verification Section, efforts have
been made to incorporate vital aspects of Codes and Manuals and at the same time
standards and targets have also been incorporated.
The working of Stock Verification section is guided by the following
documents:
• Indian Railway Stores Code , Part I and Part II,
• Indian Railway Accounts Code, part I
• Stock Verification manual,
• Railway Board’s circulars,
• Compendium and circulars issued by Zonal Headquarter.
• Instruction/guide lines issued from time to time by Railway
Board, and by HQ.
In this document instead of reproducing details from codes and manuals the
relevant Para has been quoted in abbreviated form. For example 3301-S means paragraph
01 of Chapter XXIII of the Indian Railway Code for the STORES Department Volume-I.

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Sr.DFM’s Office West Central Railway Bhopal Process Manual

SCOPE OF WORK

1. PREPARATION OF:-

• Annual verification Program on sensitivity analysis.


• Carry out the stock verification of allotted units.
• Carry out special checks as directed by FA & CAO.
• Witness the deliveries
• Assist the executive for clearance of stores suspense the accountal
of issue notes
2. Scrutiny of replies received against S.V.sheet and Narrative report
and closure thereof

3. MISC.WORK:

a. Allotment of duties of ASVs

b. Compilation of S.V. of units allotted to ASVs

c. MPR & HYAR

d. Periodical Test check of ASVs

e. Surprise check and Inspections of stores, Inspections of lots


proposed for auction for sale.

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Sr.DFM’s OFFICE, West Central Railway Bhopal Process Manual

SECTIONAL PROCEDURE:
1.) Objective of Stock Verification
The object of the stock verification by the Accounts department is to
ensure that the said material accord with the description and specification and the
balances appearing in the books and excess or deficiency, if any, noticed on such
verification are properly investigated and accounted for. It is to ensure that book
balance and ground balance tallies and they are properly maintained. During the
verification of any unit, and stock verifier has to ensure that
• Every item is verified after proper counting, weighment, and measurement in
presence of responsible representative, subordinate or ward keeper or stock
holder himself.
• No items and tally books are left without verification.
• No unaccounted stocks are lying at Depot, ward and office of the subordinates.
In case unaccounted stock is found, reason has been recorded by the stock
holder.
• Weighing machine used for weighment, is being checked before verification.
• Proper arrangement exists for the safe custody of materials.
• Suitable measures exist against loss due to pilferage, fire and deterioration.
• The godown floors are cemented and, in cases where such floorings do not exist,
the stacking is not done on the ground but on platforms made of unserviceable
rails and sleepers.
• Is the stacking of heavy materials done in racks and lines?
• Are tools and petty items of consumable stores kept in lock and key.
• Materials of every day use such as soap, matches, towels, dusters etc. are kept
under lock and key.
• A proper locking arrangement exists for the Depot.
• Fire extinguishers and other fire protection arrangements are handy in the
depots.
• Inflammable stores such as petrol and oil lubricants (POL)are not kept in close
proximity to consumable items such as waste cotton, sleepers, wooden fittings
etc.
• Whether material is being issued strictly on “First in First out basis” or not.
2.) PROCEDURE FOR VERIFICATION
While verification of store following steps are to be followed:

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i. Ensure that items for which verification is to be done, is presented in full quantity
under certification by the custodian with nothing left to be produced.
ii. Complete verification of ground balance and get it certified by witnessing official
before analysis of book balances is undertaken.
iii. Ensure that the labour staff allotted for verification is sufficient and that the scale,
crane and other facilities are available for verification, wherever necessary.
iv. Check up the scale to ensure that it is in proper working condition.
v. Ensure that stores are kept under proper bins and racks with duly painted P.L. Nos.
on them to facilitate easy identification of stores in stock.
vi. Have a complete survey of the ward to ensure that the stores taken out of the
bins/racks and disturbed stacks are put back in their proper places.
vii. Ensure that a stores representative is available to witness the stock verification.
viii. Obtain all bin cards/tally cards of the period to be verified from the ward on the date
of verification.
ix. Ensure that all the receipt and issues postings are upto date on the date of
verification.
x. Ensure that as regards the computerized items, the receipt and issue vouchers
relating to the date of verification are not posted on the bin cards till the verification
results are posted. It should also be seen that the bin card balance is tallying with
Transaction Register (TR) of the previous month.
2.1) BASIS OF VERIFICATION:
The verification of stores either held in a stores Depot or with executive
subordinate office should invariably be conducted with reference to the annual
programme approved by the FA&CAO. The verification of units not contemplated in
the annual programme and also special verification of stores with the custodian at
the request of the controlling officer may also be carried out with the prior
approval of the FA&CAO provided sufficient man-days are available to accommodate
such special checks and the regular annual programme is not affected.
3.) Duties of the Inspectors of Stores Accounts (S-3205 to 3208)
Ordinarily the duties of ISAs on verification work are of supervisory in nature
over the functioning of ASV. However in special circumstances, stock verification
may also be entrusted to them to bring qualitative improvements. Apart from this
ISAs should undertake the following activities:

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i) Collect information regarding formation of new units/new PLs from all


the departments before preparing the annual Stock Verification
Programme.
ii) Prepare Programme of verification work for each financial year for
stores Depots/other units well before commencement of the financial
year and submit the same to FA&CAO for approval.
iii) Ensure that realistic man days are budgeted for verification of each and
every so that wastage of man-hours due to non-availability of helping
staff is minimized.
iv) Distribute the Programme approved for the financial year in such a way
that the Programme will be completed as per schedule.
v) ISA have to check related documents, records and measurement books
of store at store depots, offices stations and workshops.
vi) Seize any document/record initial books of stockholder required for
further investigations.
vii) Carry out periodical test check of stock verifiers as authorized by the
Stores Accounts Officers to ensure quality of verification.
viii) Prepare and submit monthly progress report both in respect of
verification work done (May days) and disposal of stock sheets to the
Hqrs. Office by ISAs at Depots/IS divisions.
ix) Conduct surprise check /Intensive checks/special checks with special
attention to unearthing serious irregularities at places where the
transactions are heavy and make out reports of irregularities thereon
and follow up until appropriate action is taken up by the concerned
authorities.
x) Attend to scrutiny and disposal of Stock Sheets /Narrative Reports by
close monitoring and investigate into heavy discrepancies revealed
either in stock verification or as a result of review of accounts. Co-
Coordinating ISA of the verification unit must ensure optimal output of
ISAs/ASVs working with him.
xi) Weekly Diaries
xii) Field Book
xiii) Record Keeping should be proper , safe and secure.
Apart from the above duties the following role of ISA is also
mentioned below:-
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(I) REVIEWS /OVERHAULING OF ACCOUNTS


The most important role of ISA which he has to play in controlling
of inventory and review of overhauling of accounts. In case the stock
verification programmes by ASVs exceeds 20 days the overhauling of
accounts will be done by ISAs to see:-
a) Check of issues as per annual consumptions in relation with
demand and stocking.
b) Reasons for over stocking if any.
c) Reasons for an item becoming non moving.
d) A detailed check of idling assets.
e) Review of surplus stores.
f) Review of item being purchased regularly on non stock basis.
g) Review of imprest stores to check the cases of revision as per
trend of consumption.
h) Review of local purchases.
i) Review of issues and corresponding release of items as per
sanction estimate in case of section work and also in cases of
other work chargeable to revenue.
j) Review of accounts of stores delivery vans.
In addition to it ISAs to carry out complete review on emergency
purchases, AAC, pending dues in relation to stock position and also he
has to see the issues as first in first out (FIFO) system to avoid any
deterioration of store. He should also have a proper check on system of
proper storing of items of common use and fire prone.
(II) CAPITAL STORES
Reviving section check of store depot are to be carried out by ISA each
month to see that:-
a) There is no item left unconnected.
b) Accountal is done regularly.
c) There is no item where documents have been received but material not
received.
d) Regular clearance of stores in transit , depot transfers of purchase.
e) Regular clearance of rejected stores within time and recovery of advance
payment and other dues as inspection charges, storing and supervision
charges if any, if leviable.
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f) Check on system of inspection to see in cases of delay in accountal on


account of late inspections.
g) All pending claim cases to find out its proper reason.
h) The system of station clearance check on demurrage and wharfage
charges with entries made in progress register of depot.
i) The system of storing of materials and regular issues towards after
speedy accountal.
III SV SHEETS AND NARRATIVE REPORTS
ISAs are responsible for proper dealing with SV sheets and narrative reports,
continuous chasing with divisional officers /stores officers and store holders
is also required to be done. more care has to be taken in dealing with SV
sheets and Narrative reports which involved in:-
A. Theft cases.
B. Court cases.
C. Claim cases.
IV SURPRISE CHECK
It is a vital role of ISA to carry out surprise check in consultation with
Accounts officer at stores depot ,stores holder on shed, workshops , stations,
offices etc. For carrying out surprise check no advance information is given and
before carrying out the surprise check items may be selected and detailed
examination of system of accountal issues, storing, disposal, together with
ground balance to check net deficiencies of the item is to be done. ISA should
carry out surprise check on deliveries being witness by ASV and a report should
be submitted to Accounts Officer for the work done.
V Lot Inspection
The scrap material after declared as surplus by store depots and before
auction each lot is required to be inspected by ISA as without which no
material is generally allowed to be sold.
ISA should carry out lot inspection in detailsand with minute
observations. Mainly following points are to be examined:
i) Proper sanction.
ii) Proper accountal.
iii) Proper description.
iv) Proper location.
v) Proper quantity.
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vi) Proper approach.


In case of lot inspection of condemned rolling stock like wagons, coaches and
locos the aspect of restricted items is to be seen very carefully while assessing
the approximate auctionable weight of the item.
Lot inspection of scrap rails of different rail section is done by taking
measurement of each rails as mentioned in sanctioned SS-11 and sectional
weight of lot of rails is arrived at `with 5 % provision are allowed for wear and
tear allowed in case of scrap rails other than 115lb/60 kg. and 52 kg. The
delivery of rails other than stores depots are given on sectional weightment
basis.
VI AUCTION SALE
Another important role of ISA is witnessing auction sale. Before start of
auction sale ISA should check the auction catalogue very carefully. It should be
ensued that all lots put up for auction sale have been inspected by respective
ISA of the unit and have been declared ok for sale. If lots have been declared as
withdrawn by ISA it is to be seen that all such lots have been withdrawn from
auction sale. ISA should carry out a check on entry fees deposited by the
bidders in the acceptable form and each bidder have been provided with a token
thereof .
During the course of auction sale ISA should remain more vigilant and
should watch that:-
(a). All bidders have proper token in support of entry fees.
(b). The system of auction adopted by auctioneer is as per rule.
(c) The bids are being obtained lot wise and unnecessarily combined
bids of two or more lots are not taken without being bid rejected
earlier.
(d) Immediately after the highest bid is accepted by the depot officer
auctioneer should declare the name of purchaser and he should
issue a slip showing lot no. ,quantity, rate ,name of the purchaser
etc. if any change or addition has been done by auctioneer the
matter should be brought to the notice of supervision officer.
(e) During the course of auction ISA should have closed watch on ring
formation among the bidders and if any such event is noticed he
should bring it to the notice of depot officer and accounts officer
concerned.
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(f) The bids are not accepted abnormally lower than last auction
rates, if such occurrence is noticed the matter should be brought
to the notice of accounts officer who will further check from list of
reserve price supplied by depot officer after auction.
After the auction sale is over ISA is required to do the following
work:
a) Check bid sheets, bid auction catalogue and special
announcements.
b) Check of proper deposition of EMD with Railway Account .
c) Check of SA-6 forms.
d) Preparation of auction sale report showing the details of
auction held.
VII ACCOUNTAL OF SALE ISSUE NOTES BY ISA
The main reasons for lying heavy credit balances in sale suspense due to
non accountal of sale issue notes. For minimizing of such balances, ISA
should have a manuscript register with them showing the details of sold
lots delivered. In this register a column should be made showing the date
of continuity no. of sale issue note which will help the administration in
minimizing credit balances.
VIII SHOP FLOOR INVENTORY
In the major workshops and sheds the aspect of shop floor inventory is of
very important nature. Shop floor inventory highlights the following facts
a) Over stocking of stock and non stock items on shop floor
thus blocking the railway revenue on unproductive
investments.
b) Excess drawal of materials than MUF fixed up.
c) Trend of consumption in relation with drawal and out put.
d) Disposal of scrap or released items.
e) Wrong drawal of materials.
In addition ISA is supposed to carry out check on idling machines make
and buy comparison in case of shop manufactured items including revision of
rates , which will help the administration in field of better managerial control on
inventories.

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3.1) Duties of Account Stock Verifier.


Stock verifiers are required to verify the ground balance by actual
counting/weight or measurement as the case may be of the following:
a) Stores in the custody of stores department.
b) Imprest or surplus materials in the custody of sub-ordinates on line.
c) Material-at-site of the work.
d) Charged off materials in the workshops, sheds and elsewhere generally as
far as they are susceptible to check.
e) Timber in the Carriage Workshops.
f) Consumables
g) Tools and plant, dead stock in the custody of subordinates and offices of all
departments of the Railway.
h) Fixtures and fittings of electrical items at various service Buildings.
i) Surprise and special verification of stores as per instruction of the
administration.
In addition to these, ASV’s are assigned the duties of witnessing the
deliveries of scrap stores sold in Auction etc. The results of the stock verification are
compared with the ledgers and the deficiencies, if any are brought out in the SV
sheet. The major irregularities, i.e. procedural lapses, wrong classification, bad
condition of storage, damages, etc. are brought out in the form of Narrative Report.
One copy of SV sheet / Narrative Report is submitted by ASV to the stockholder and
his controlling officer with a request to offer the remark/verification on the
deficiencies. Similarly one copy is submitted to SR DFM along with the completion
certificate and completion report.
4.0) ACCOUNTAL AND DISPOSAL OF SCRAP MATERIAL
The materials of different kinds which are no longer required for the purpose for
which they were procured by consuming department on Railways are called scrap
items.
4.1) Sources of arising of scrap
1. Railway workshops.
2. P. Way scrap.
3. Condemned Rolling stock.
4. Melting scrap from various sources.
5. Misc. scraps from various stores holders.

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Each item of scrap sent to the nominated stores depot will be supported with
relevant DS-8 Note showing PL NO., Name of the depot , Date, description and
quantity of material together with the remarks of condemnation recorded on DS-8
note and one copy is returned to sender for his records. In stores depot each DS-8
note is accounted for by giving continuity number.
ISA’s during their visit to stores depot. should check the proper accountal of
DS-8 Note. The ferrous scraps received in depots are verified by ISA/ASV and
therefore it has been exempted from stock verification. Hence there should not be
any item left unaccounted. So far as P. Way scrap is concerned, during the course of
lot inspection to be close by ISA, it should be ensured that proper DS-8 Notes exists.
4.2) Disposal of Scrap
Each kind of stores duly surveyed by survey committees(other than those
items exempted from survey) and sanctioned by competent authority including
condemned rolling stock where BUOs have been received are put up for auction sale.
After auction sale SA6 is prepared by stores depot with the help of particulars
mentioned by auctioneer in Bid sheet. The purchaser will deposit Earnest Money to
the auctioneer immediately after the acceptance of his Bid and turns up to
auctioneer by depositing balance amount and VAT. The auctioneer issues D.O. and
production of DO to auctioning officer a letter for delivery is issued. The delivery is
given by stores holder in the presence of ASV and a representative of RPF. Sale issue
notes are prepared except in case of rolling stock and heavy machineries where
accountal is with depot officer concerned and thus disposal of scrap is done.
5) CONTROL AND SUPERVISION
The ISAs and ASVs attached to units are administratively controlled and
supervised by; the concerned SR.DFM. However, they are under professional control
of FA&CAO / Stores.
5.1) Main steps of Verification
ii) Voucher collection.
iii) Physical verification.
iv) Voucher check in respect of receipts and issues and checking of balancing
errors.
v) Preparation of stock verification sheets duly comparing the inventory
summary (ground balance) with the verified ledger balances.
vi) Narrative report on procedural irregularities.

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5.2) Frequency of Verification


The Stores, whether in a Stores Depot or with a department should be verified by
Accounts Stock Verifiers as per the following periodicity:
(3310-S)
SR. Nature of Stores Periodicity of Verification
NO.
1. Materials –at-site of works Once in a year
2. Stores with Imprest Holders Once in two years

3. All tools and plants Once in three years

4. All materials in a depot whose accounting is


brought under computerization are verified
As under :
4.1 Category ‘A’ Items:
All items having an annual usage value of Rs. 35.25 Lakhsonce in six months.
4.2 Category ‘B’ Items:
All items having an annual usage value of Rs.4.8 Once in a year
Lakhs and above, but below Rs. 35.25 Lakhs

4.3 Category ‘C’ Items:


All items having an annual usage value below Once in two years
Rs.4.8 Lakhs
4.4 Category ‘D’ Items: All items that have had no
issues for twelve months and over Once in two years

5. Provisions in Catering Department, subsidized hostels and


hospitals Once in four months
6. The T&P items and equipments supplied to Once in a year
catering department, Subsidized hostels etc.
7. Dead stock lien T&P items, equipments, etc. Once in three years
pertaining to Hospital/Running Room
8. Computer equipments and Hindi Books Once in three years
An annual verification programme is prepared sensitivity analysis and based on the
above provisions after receipt of sanctioned to this program from FA&CAO, Sr ISA
(Coordination) will distribute the program stockholder wise between the ASV’s. ASV’s

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in turn will verify the physical balances as compared with the ledgers. The routine
physical verification of the stock comprises of:
(I) Imprest / surplus material in the custody of subordinate on line.
(II) Material at site of work.
(III) Fuel, coal, HSD oil with loco (Optg and Mech Department)
(IV) Engg. Plants reserve.
(V) Dead stock.
(VI) Tools and plants.
(VII) K-Oil at stations.
(VIII) Voucher check. (Receipt and issue)
In the office of SR. DFM the details of SV sheets / Narrative Reports are entered in
register no 3261/S wherein full details such as year, stockholder, SV sheet number,
Narrative Report number, date, deficiencies, etc. and their day-to-day progress is
watched by SR ISA (co-ordination).The remarks/replies of SV sheets / Narrative
Reports received from executives will be scrutinize by ISA and will be put up to SR
DFM for closure, if acceptable. Otherwise reminder / rejoinder will be issued for
further clarification.
Outstanding SV sheets / Narrative Reports to end of the month will be
brought out in a statement department wise and year wise, which is the part of the
document submitted to HQ. in the monthly progress report. Similarly the
performances of the ISA’s during the month i.e. lot inspection; test check of ASV’s
special checks, handing over of scrap, etc will be submitted to HQ. Monthly progress
report and monthly performance report is submitted to HQ before 5th of the following
month through SR DFM.
6) ESTIMATING ANNUAL MAN DAYS REQUIREMENT
Man days should be estimated for a year taking into account frequency of
verification indicated in the preceding Para and man-day/hours required per item
depending upon its average balance.
According to the above processor annual stock verification program of the division
along with the number of man days required during the year as well as the currency of
the post i.e. ISA/ASV’s will be submitted with the approval of Sr.DFM.
7) MAIN REASONS FOR DIFFERENCE BETWEEN GROUND AND BOOK BALANCE
Error in posting of receipts and issue vouchers and correct quantity in the
ledger.
a) Calculation/arithmetic errors.
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b) Cross issue/ cross postings


c) Omission of postings
d) Posting twice in the same bin card/ ledger/ tally book/account
e) Error in counting, weighing, at the time of certification of receipts and
issues
f) Omission in presenting a lot, wrongly kept elsewhere, for verification.
g) Presenting an item already issued and debited but not dispatched to the
party for verification
h) Pilferage or fraud
i) Defective weighing machines incorrect weighment
j) Wrong issue of one material for another similar in appearance, which
causes shortage of the item actually issued and excess of item wrongly
shown as issued in the books.
k) Not posting an issue already made, due to said issue not being posted
or being rejected by computer leading to “shortage”. Similarly, not
posting a minus issue or a receipt will show an excess.
l) Loss of materials in the ward for any reason including over lifting will
show shortage.
m) Actually issuing quantity less than shown on an issue note will show
an excess.
n) Items difficult to issue in precise quantities like frequent issues on
weight or very large numbers or items issued in running lengths can
result in excess or shortage ground balances.
8) EXPLANATION OF DEFICIENCIES
SR. CAUSES OF DEFICIENCY PARTICULERS TO BE FURNISHED
NO
1 Materials issued but not Party ,voucher no, date, quantity and why
Accounted for issue was not accounted for
2 Due to cross issues Relevant entry noticed under other account
having similar items , S.V. sheet folio item
no brief description and size surplus
quantity recorded
3 Due to fluctuation of weather Date of last verification and quantity then
verified, quantity of material subsequently

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received and issued & shrinkage allowed


4 Material lost in transit Why the papers were not shown to the ASV
or for inclusion in the verified balance as
per Para 1228-s, what action has since been
taken to finalize the loss
5 Materials escaping verification Particulars of quantity, where it was lying
and how it escaped verification. How the
material has since been taken to account
through department verification
6 Loss due to theft, fire etc Same as for item(4) above
7 Material sent for metallurgical ------do----
test to be done by CMT
8 Material classified under a lower Quantity verified as surplus under hand
class by the stock verifier due to second (or scrap) with particulars of AV
damage or condition of the material. sheet folio item numbers
9 Other issues not covered by the above Suitable remarks depending upon the
nature of the case
10 Causes of deficiency not known Defect in procedure, party at fault, action
taken to avoid similar discrepancy in future
including recovery in part or whole of the
cost of material found missing due to
neglect (Para 3263-E )
Note: Corrective entries are to be made under competent sanction & got
verified by ISA before stock sheet can be closed
9) EXPLANATIONS FOR EXCESS
Cause of Deficiency Particulars to be furnished
Sr.N
o
1 Material received but Party sending the material, voucher number ,
not taken to account date, quantity , how accountal was over looked
2 Materials subjected to Date and quantity in stock during the
previous fluctuations of verification; quantity of material subsequently
weather received & allowed shrinkage etc.
3 Due to cross issued Relevant entry shown under other similar items

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4 Materials issued but not Party, voucher number;date;quantity,why was


removed by indenter the material not removed, why adjustment
D/note was not prepared to write back the
issues
5 Error in verification Description and quantity of the material is
correctly included in the verification, reference
to folio and item nos,quantity of shortages
adjusted against such items. Has the error
since been rectified through departmental
verification ?
6 Other causes Suitable remarks depending upon nature of
case
7 Causes of surplus not Defect in procedure, party at fault; action taken
known to avoid similar discrepancies in future
Note : In all the cases corrective entries should be made and got certified by ISA
with suitable remarks before the stock sheet could be recommended for
closed.
10) OBSERVATIONS TO BE MADE DURING STOCK VERIFICATION OF
ENGINEERING DEPARTMENT
a) Non-accountal of materials received from contractors as well as from other sources
and unauthorized transfer of materials.
b) Failure to account for released materials fully adopting lesser weights for released
materials.
c) Unauthorized issues of material.
d) Issue transactions not vouched properly.
e) Excess issues of material.
f) Failure to carry forward closing balances.
g) Non- admission of stock verification consecutively for several years on various
pretexts.
11) OBSERVATIONS TO BE MADE DURING STOCK VERIFICATION OF MECH.
DEPARTMENT
i) Non-Accountal of costly materials like paints, sheets and other parts and
release.
ii) Over-drawl of issue transactions by the Shop/Shed to end of financial year.

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iii) Mixing up of new items with serviceable/released items and mixing up of


serviceable released with unserviceable items to cover deficiencies in stock.
iv) Fictitious issue/receipt transactions.
v) Non-Accountal of Imprest stores.
vi) Non-Accountal of records of diesel oil pump sheds and check of flow meter.
vii) Charging- off of costly oils from ledgers without any vouchers.
viii) Substitution of costly item of woolen blankets with cheap items.
ix) Charging Off axle oil/K. oil/cotton wastage periodically without actually
issuing the said materials.
x) Non-Accountal of huge quantity of HSD oil.
12) MONTHLY PROGRESS REPORT:
a) At the end of each month, the Accounts Stock Verifier (ASV) should compile
and submit the Monthly Progress Report from the weekly Diaries in the
prescribed form duly filling in all the columns provided in the format.
b) In carrying out their work as per programme, the accounts stock verifiers should
note the frequency of verification of the various categories of stores and should
undertake checks only if they are due for verification during the year. If, on visiting
the stations, the checks are found not due or a store holder is not existing, etc., the
accounts Officer (stores) should be advised accordingly with necessary details and
other checks at the station to be taken up if due, or he should proceed to the next
station of verification, where minimum loss of time is involved in such journey.
c) The ASV may come across in course of their visit, existence of any new stock
holder(s) at these stations. The particulars of such stock holders should be noted
and advised to the Stores Accounts Officer for necessary action.
d) The Stock Verifiers should normally complete the checks allotted to them within the
allotted number of days provided for each checks. The number of days allowed for
each check is based on the time actual taken in the previous years and also the
number of items held by the stock holder as advised by the departmental officer.
Wherever the ASV feels that he would not be able to complete a given check
within the allotted time and he should submit necessary justification well in
advance of the completion of the check, for extension of time, for verification and
obtain sanction of the Accounts Officer for exceeding the number of man-days
provided for the check. The extension requested for, should normally be on the
following lines:-

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i) Increase in the number of items held over the last verification (the
number of items actually increased should be clearly indicated).
ii) Increase in the stock held over the last verification (the quantities
actually
iii) Increased should be clearly specified.
iv) Increase in the number of works over the last verification (the
increase should be clearly specified).
v) Increase in the length of the section held by the stockholder over the
last
vi) Verification. (It should be clearly indicated as to what extent there
would be increase in the verification work).
vii) Any other specific cause/causes due to which verification
programme is Likely to be affected warranting extension.
e) Stock verification of pilferable and consumable items like Kerosene, Paints etc.,
should be taken first before assessment. On visiting a unit for verification, ASV’s
should first assess the quantum of work involved, arrangement of materials,
availability of labour, availability of weighing facilities, etc. and examine whether
the check can be completed within the time allotted and submit justification
for extension of man-days wherever considered necessary, on the lines suggested
above, well in advance of the expiry of the time allotted for the check in question.
f) When Stock Verifier attends the Hqrs. office on the last day of every month for
receiving payment, he should submit the following returns to the ISA concerned
without fail for review :-
I. Completion documents including Stock sheets and Narrative Reports
II. Progress report for the month.
III. Field Book.
IV. T.A. Journal.
V. Special reports
13) TEST CHECK:
During the occasion of their test check of the stock verifier's work ISA should
examine the following aspects and comment upon the same in their report.
a) Attendance of the S.V. and the time of arrival at venue of verification.
b) Whether the books have been closed as required herein.
c) Whether the Field Book has been maintained in the required manner.

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d) Whether initials of the custodian have been obtained against the relevant item in the
Field Book in respect of inventory taken up to date preceding the date of ISA's test-
check.
e) The stock of selected items verified by the stock verifier on the date preceding the
date of test check should be re-verified in the presence of the S.V. and custodian and
submit a report in case of disagreement, after updating for subsequent receipts and
issues should be submitted.
f) The ISA may also carry out surprise check of one or two key items on such an
occasion and scrutinize the accounts maintained for the items so selected from the
date of last stock verification to the date of commencement of the surprise
verification and submit the stock sheet with special report, if any.
14 )EXPEDITIOUS FINALISATION OF STOCK SHEET AND RECOVERY LOSSES
A JPO has been issued on WCR on the subject which covers all important aspect for
disposal of stock sheets. The JPO is reproduced as under:
• As per board’s order ,stock sheets should invariably be settled within a period
of six months.
• Delay in finalization of stock sheets results in attendant problems, viz- non
availability of records, missing stock sheets, retirement of staff prima facie
responsible etc.
14.1 PROCEDURE
14.1.1 Details on Stock Sheets While issuing a stock sheet for any stockholder, the
stockholder’s name, designation, and date of superannuation shall be
prominently mentioned on top of the stock sheet.
14.1.2 Action by Stockholder The stockholder shall scrutinize the stock sheet
immediately on receipt and submit his remarks explaining the
shortage/excess, etc to his controlling officer within a period of 45 days.
14.1.3 Action by Controlling OfficerThe controlling officer would scrutinize the
remarks submitted by stockholder and forward the same to his branch
officer in divisions and depot officer in sheds and workshops , as the case
may be , within 20 days of receipt.
14.1.4 The branch officer/ depot officer will submit it within next 15 days to the
concerned accounts officer, after due scrutiny, duly explaining the
shortage/excess, etc.
14.1.5 However, if remarks furnished by the stockholder explaining the shortage /
excess are not found satisfactory by the controlling officer, he will himself
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investigate the matter or through his nominated person and furnish the
remarks through his branch officer or the officer in the workshop /shed
/construction unit to the account officer concerned within a period of 80
days from the issue of stock sheet indicating the responsibility fixed for
shortage/excess.
14.1.6 In case the stockholder is under orders of transfer, care shall be taken to
obtain his remarks for any outstanding stock sheet before relieving him from
the post. Proper handing over and taking over of stores between the relieved
and the relieving stockholder shall be ensured and stock sheets outstanding
shall be specifically mentioned in the handing over/taking over.
14.1.7 Controlling officer shall bring the JPO to the notice of the stockholder at the
time of taking over of the charges.
14.1.8 Action in the event of unsatisfactory explanation by the Stockholder In
case of shortage pointed out in the stock sheet which could not be explained
satisfactorily within specified time, the amount shall be recovered from the
stockholder/staff held responsible by the controlling officer after giving him ‘
show cause’ notice and considering his representation. The employee shall be
expected to give his reply within a period of 15 days from the issue of notice.
The reply, if received in time, shall be expected to give his reply within a
period of 15 days from the issue of notice. The reply , if received in time ,
shall be considered within a overall period of 30 days from the issue of the
said ‘ show cause’ notice. If , no reply is , received from the employee within
15 days of time of ‘ show cause’ notice or the reply submitted is not
satisfactory than the recovery of amount shall be initiated with the
permission of respective branch officer in the division and concerned
JAG/SAG officer in other units, the decision to recover the amount will be
communicated to the employee by the controlling officer and recovery started.
14.1.9 In Case of unexplained excess, suitable disciplinary action will be initiated.
14.1.10 Action by Accounts Officer The accounts officer shall ensure complete
scrutiny of the reply so as to be able to either issue ‘ closure advice’ or seek
supplementary clarifications within a period of 10 days.
14.1.11 While seeking supplementary clarifications, the accounts officer shall make
endeavour to raise all points of doubt, on the basis of the available
information, at the first instance. He shall take care to remove possibility of
unnecessary correspondence.
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14.1.12 On receipt of a reply by way of clarification on the doubts raised, account


officer shall check the same for completeness, accuracy and relevance.
14.1.13 He shall seek any further clarification only once more and only to clarify any
further information submitted by way of first clarification.
14.1.14 Therefore, in case the reply and clarification are acceptable as satisfactory,
the accounts officer shall issue a ‘recovery advice’ (with the permission of not
less than a JAG officer of Accounts department) against the defaulting
Stockholder to the branch officer of the stockholder, within 15 days.
14.1.15 Recovery procedure in case of established shortage Action taken against
the staff held responsible as well as amount recovered / to recover shall be
indicated in the remarks column of the stock sheet.
14.1.16 The controlling officer shall advise the amount to be recovered to the
concerned pay sheet preparing and passing units which shall ensure recovery
from salary / other dues of the staff held responsible for loss. The controlling
officer shall ensure that the recovery process is started immediately, in no
case later than one salary cycle after the receipt of the ‘recovery advice’.
14.1.17 A copy of the deduction list after completion of recovery will also be sent by
the concerned personnel officer to concerned accounts officer, who had issued
the stock sheet, for his information and further necessary action.
14.1.19 In cases where the controlling officer is also the personnel officer, he shall
ensure the same action and recovery in suitable installment will be made.
14.1.20 The concerned bill preparing unit shall maintain a register indicating amount
due for recovery, amount recovered and balance recoverable amount.
14.1.21 In case of transfer of the staff, the amount outstanding for recovery if decided,
else details of stock sheet will be incorporated in the last pay certificate, and
the details of recovery made shall be advised to the parent unit by the new
unit which the employee has been transferred.
14.1.22 Any recovery outstanding on account of stock sheets will be included in the list
of dues outstanding affiants the employee at the time of his retirement to
ensure the recovery being made from the settlement dues.
14.1.23 The account unit which has issued the stock sheet will advise the controlling
officer, personnel and accounts officers concerned about the stock sheet
outstanding against a stockholder/staff held responsible with the details of
unexplained shortages, six (6) months in advance of the superannuation of
the stockholder/staff held responsible so as to ensure expeditious finalization
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of the stock sheets and recovery of the amount of unexplained shortages from
the settlement dues to the employee.
14.1.24 In case of voluntary retirement /death/ medical unfitness,etc, it shall be
responsibility of the controlling officer to advise the personnel and accounts
officers concerned for making recovery from the settlement dues , the final
settlement shall not be made without ‘ no due certificate’ from all three above.
15 THEFT AND CLAIMS CASES
15.1 Action expected from the Stockholder in the case of
theft/misappropriation/fraud
15.1.1 Those cases in which stock sheets were issued on account of
theft/misappropriation / fraud, the stockholder should immediately, after due
verification, make out a written report ( FIR) giving facts of incidents , place,
date , time of occurrence, quantity and value of railway property stolen
/misappropriated , names and suspected persons, if known and lodge an FIR
with the concerned GRP/CITY/LOCAL police station with the help of post in
charge/RPF without any delay. One copy of the written report should be given
to post Incharge/ RPF having jurisdiction.
Post Incharge /RPF will act as bridge between Railway Authority
concerned and GRP /CITY police and will assist in getting the case (FIR)
registered under specific section of LAW by GRP/CITY police. A copy of the
FIR and case reference will be given by the complainant to post incharge/ RPF
for record and reference into the case, so that liaison may be maintained by
RPF with the concerned GRP/LOCAL POLICE. Post incharge will co-ordinate
with the city police station and will assist the Railway Authority concerned in
getting a copy of the FIR with case reference etc. The progress of the case will
be collected by the complaint with the assistance from RPF.
15.1.2 The stockholder will submit a copy of the FIR, along with case reference etc, to
his controlling officer. Post Incharge / RPF will also submit his report to his
Controlling Officer and co-ordinate with the GRP Post / Local Police to obtain
progress report etc.
15.1.3 Where a specific case has been lodged under IPC sections / other acts the
stockholder controlling officer will ensure the attendance of departmental
witness for early finalization from time to time with Post Incharge/ RPF to
know about the progress of the case.

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15.1.4 The controlling officer of the stockholder will liaise from time to time with SR
DSC/RPF having jurisdiction for early finalization of police case in the court of
law.
15.2 Action expected from the Stockholder in the case of claims lodged with
the Commercial Department
15.2.1 In case of stock sheets where claim has been lodged with CCM/CCO a copy of
the claim case should be marked to the accounts office stock verification cell.
15.2.2 The controlling officer shall pursue the finalization of the case with claims
department.
15.2.3 The claims department should finalize these cases within a maximum period
of 6 months from date of lodging of claim and advise the controlling officer
about finalization of claim case.
16) TIME SCHEDULE FOR DISPOSAL OF STOCK SHEET
16.1 All officers/ staff dealing with the stock sheets shall ensure expeditious
clearance of the stock sheets within a maximum period of five months and
recovery of losses pointed out in the stock sheet is to be ensured.
16.2 The calendar based on the the above procedure as given in the annexure
should be strictly followed.
17) MONITORING OF STOCK SHEETS
17.1 Status of outstanding stock sheets may be made part of the PCDO to ensure a
close watch on a monthly basis.
17.2 Necessary records shall be maintained for proper documentation. Stock
sheets over three month old should be taken up on the agenda of monthly
meetings at ADRM/ Unit heads level and target should be fixed for their
finalization.
Authority DYFA&CAO/JBP Letter no, HQ/AC/SV/Policy Dtd. 18-12-2008)

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Sr.DFM’S Office West Central Railway Bhopal Process Manual

Calendar of Events

S.NO Dates Event


1 D Date of issue of Stock Sheet
2 D+45 Preparation of reply by depot in charge / stock holder and
Days submission to his controlling officer
3 D+60 Examination of the reply by controlling officer and submission
Days to Divisional Branch officer within 10 days
4 D+80 Scrutiny of the reply by the division officer and submission of
Days same to account will be ensured within 10 days thereafter
5 D+90 Scrutiny of remarks by Accounts, issue of closure advice
days clarification within 10 days
6 D+105 Submission of supplementary clarification by the branch
days officer to accounts office within 15 days
7 D+120 Final scrutiny and closure within 15 days
days Or
Recovery decision to be taken by Branch Officer on advice of
Accounts as per Para 2.4.1. against the defaulting stockholder
8 D+150 Recovery order should be issued by the branch officer effecting
days recovery from current salary bill or at least from next salary
bill of the defaulting stockholder including disposal of ‘ show
cause’ notice

Note: Time provided for supplementary clarification would be 15 days only


for each round. The maximum of two rounds of clarifications shall be
permitted.

Authority: JPO NO.HQ/AC/SV/Policy dated 18-12-2008

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S.V. Section chapter 6 Page 1 OF 1 Rev:00 01.01.09 Approved by __________________


Sr.DFM’s OFFICE , West Central Railway Bhopal Process Manual
VOUCHER CHECK FLOW CHART
Receipts to the VOUCHER CHECK
Issues from the Unit

Supplier Issue Receipts Inward Receipts Inward


invoices Vouchers from the Transfer from the Challans,Vouchers
/challans of Stores Contractor. Transaction. DSK under and DS8’s for left
Bill Depots. DSK’s over Class-I
payment Challan/ matearials and
Vouchers. Voucher. released P.Way in
case of Con/GC units.

Issue Materials Outward Outward Issues from DS8s for Materials


Challans issued to the Transfer DS8s associate the Scrap issued to
Vouchers Contractors. transactions. materials units to materials Loan A/C.
for the sent to DSK(Con.)/ delivered under
materials Scrap GC. to Scrap temporary
issued to Depot. Purchases. issue
the work. challan.

Verification of Receipts and Issues with DMTR

Verification of Receipts and Issues transaction from DMTR to Ledger Account.

Arithmetical accuracy of Ledger Balances.

Comparison of Ground Balance with Book Balance and Certification of Ledger A/CS.
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SV Section Chapter 7 Rev: 00 01.01.09 Approved By_________


Sr.DFM's Office, West Central Railway Bhopal Process manual

ACTIVITY/ RESPONSIBILITY MAPPING CHART(STOCK VERIFICATION SECTION)


S. No. Supervisor
Activity Detail Dept. ASV Code
Code
PREPARATION OF:-

1 Annual Programmee ALL DEPTT. SR.ISA ASV

CLERANCE OF :
2
S.V.SHEET AND NARRATIVE REPORT ALL DEPTT. SR.ISA ASV

MISC.WORK:

Allotment of duties of ASVs ALL DEPTT. SR.ISA ASV

Completion of S.V. of units alloted to ASVs and submission of


ALL DEPTT. SR.ISA ASV
C.C.&C.R.
3
MPR & HYAR ALL DEPTT. SR.ISA ASV

Periodical Test check of ASVs ALL DEPTT. SR.ISA ASV

Surprsie check and Inspections , Inspections of lots proposed for


ALL DEPTT. SR.ISA
auction for sale.

S.V.Section chapter 8 page 1 of 1 Rev 00 01.01.09 Approved by: ________________


Sr.DFM's Office , West Central Railway Bhopal Process manual

STOCK VERIFICATION SECTION CODE ALLOCATION SHEET

S.No. Name Designation Alloted Code


1 B.C.PATEL SR.ISA A1

2 R.K.GUPTA SR.ISA A2

3 A.K.AGARAWAL SR.ISA A3

4 R.K.RAWAT SR.ISA A4

4 D.K.CHOUBEY ASV B1

5 S.C.VERMA ASV B2

6 DALJEET SINGH CHAWLA ASV B3


7 YADUNATH ASV B4

Approved By
(Name & Seal)

SV SECTION CHAPTER 9 REV:00 01.01.09 PAGE 1 OF 1 Approved By______________


Sr.DFM's Office , West Central Railway Bhopal Process manual

SV SECTION CHAPTER 9 REV:00 01.01.09 PAGE 1 OF 1 Approved By______________


Document No: ESTT
January 01, 2009

ESTABLISHMENT SECTION

PROCESS MANUAL

Office of Sr. DIVISIONAL FINANCE MANAGER


WEST CENTRAL RAILWAY, BHOPAL

Telefax: : 0755-2457138
Railway Phone : 5066
E-mail : soestt@rediffmail.com

Compiled By Compiled By Reviewed by Reviewed by Approved by

(S.S.TOMAR) ( V.A.KALKAR) (D.N.DWIVEDI) (RAJIV SHRIVASTVA) (HIRA BALLABH)


SSO ESTT. SSO ESTT SSO ISO ADFM SR.DFM
CONTENTS
Revision. No/Date
Chapter NO. Title
00 01
1 Abbreviations 02

2 Cannons of financial propriety 01


3 Introduction 01
4 Source and references 01
5 Scope of work 02

6 Sectional Procedure 29

7 ESTT. User Manual on AFRES 17


Activity/ Responsibility
8 03
Mapping Chart

9 Estt. section Staff Sheet 01

10 Sectional Organisation Chart 01

11 Measurable Parameter 01

12 Monthly Reporting Sheet 01


Calendar of Returns
13 01

Regular Pay sheet process flow


14 01
Chart
Special Pay sheet process flow
15 01
Chart
Proposal cases process flow
16 01
Chart

17 List of Records 01

18 Changes to Process Manual 01


Sr. DFM’s Office, West Central Railway, Bhopal Process Manual

ABBREVIATIONS

S.No. Term Expansion

1. ATC Advice on Transfer of Credit


2. AFRES Advance Finance Railway Earning & Expenditure System

3. ATD Advice on Transfer of Debits


4. AA Account Assistant
5. ADFM Astt. Divisional Finance Manager
6. CCA City Compensatory Allowance
7. CO6 Cash Order No 6
8. CO7 Cash Order No 7
9. C&W Carriage & Wagon Department
10. DA Dearness Allowance
11. DFM Divisional Finance Manager
12. FSC. Foreign Service Contribution
13. FA & CAO Financial Advisor & Chief Accounts Officer
14. GM General Manager
15. HQ Headquarter
16. HBA House Building Advance
17. IOD Injured On Duty
18. IREM Indian Railway Establishment Manual
19. JPO Joint Procedural Order
20. JV Journal Voucher
21. LPC Last Pay Certificate
22. MOD Memorandum of Differences
23. NDA Night Duty Advance
24. OT Over Time Allowance
25. P.TAX Professional Tax
26. PRIME Pay roll integrated related module

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Sr. DFM’s Office, West Central Railway, Bhopal Process Manual

27. PNM Permanent Negotiation Machinery


28. PPM Pending payment meeting
29. SAR Salary Audit Register
30. SCA Scooter Allowance
31. SOD Report Sub Ordinate office departmental enquiry report
32. SR Service Record
33. S&T Signal & Telecom Department
34. SBF Staff Benefit Fund
35. SOPEST Schedule Of Power On Establishment Matters
36. Sr. DFM Senior Divisional Finance Manager
37. SSO/SO Senior Section Officer/ Senior Section
38. TA Traveling Allowance
39. WCA Work man compensation Act
40. MIS Managerial Information System
41. MOD Memorandum of differences
42. ACP Assured career progression

__________________________________________________________________________________

ESTT Section Chapter 1 Page 2 of 2 Rev:00 01.01.09 Approved by______________


SR.DFM'S Office, West Central Railway, Bhopal Process Manual

ESTABLISHMENT SECTION ORGANISATION CHART

Sr DFM

ADFM

SO/SSO SO/SSO
(B1) (B2)

A.A. A.A. A.A. A.A. A.A. A.A. A.A. A.A. A.A. A.A.
(A1) (A2) (A3) (A4) (A5) (A6) (A7) (A8) (A9) (A10)

ESTT Section Chapter 10 Page 1 of 1 Rev 00 01.01.09 Approved by:_____________


Sr.DFM'S Office West Central Railway, Bhopal Process Manual

MONTHLY REPORT (Establishment Section)


Month:

S. Remarks,
Activity Date Of Receipt Date Of Dispatch Processed
No. Processed not in time if any
In Time

1 Passing of Regular Paysheet

Passing of Regular
2
Paysheet/Payorders

Court Cases & RTI


3
Information

4 Dealing with Proposal Cases

5 Checking Of T.A. Journals

6 Vetting of LPC

To obtain SR of Gazetted
7
Officer(Arrived on transfer)
Forwarding of SR of
8
Gaz.Officer

Deposition of FSC charges to


9
cash office

SSO - ESTT-1 SSO - ESTT-II ADFM

(Name & Seal) (Name & Seal)

Estt. Sec. Chapter 11 QF/12/1 Page 1 of 1 Rev 00 Page No.__


SR.DFM’S OFFICE, WEST CENTRAL RAILWAY, BHOPAL PROCESS MANUAL

Measurable Parameter :

Measurable Parameter No of Days Allowed for


SR.NO. disposal
1 Passing of Regular Pay sheet 03 Working days from the
date of receipt
2 Passing of Regular Pay sheet/ Pay orders 03 Working days from the
date of receipt
3 Reply of RTI Information, Court Cases One working Day
4 Dealing with Proposal Cases 07Working days from the
date of receipt of the
proposals
5 Checking Of T.A. Journals One Week from the date
of receipt of T.A. Journals
6 Vetting of LPC 4 days from the date of
receipt of LPC
7 To obtain SR of Gazetted Officer(Arrived on One Month from the date
of arrival of Officer in the
transfer) Div.
8 Forwarding of SR of Gaz. Officer Within 10days from the date
of Transfer of Officer
9 Deposition of FSC charges to cash office One week from the date of
receipt from concern
Deptt/Org./Ministry

IMPORTANT NOTE: It is to be ensured by the concerned section in charge


that the updating of system is take place within barest minimum time and
any revision, on account of new rule/instruction from Rly Bd/ HQ’s
warrants revision of process manual, is taken place within one week of
receipt of letter. However, to ensue the task “On EVERY 1ST DAY OF THE
MONTH THE SECTIN INCHARGE WILL REVIEW THE SYSTEM AND
ENSURE THAT ALL UPDATION /REVISION DURING THE MONTH ARE
TAKEN PLACE.”

__________________________________________________________________________________

ESTT Section Chapter 12 Page 1 of 1. Rev:00 01.01.09 Approved by______________


Sr. DFM’s Office, West Central Railway, Bhopal Process Manual

CALENDAR OF RETURNS

SR.NO. Name of Returns Period Due date of To be


submission submitted to
1 Monthly Cadre statement of Monthly 1st week of FA&CAO
Gaz. staff following month
2 Monthly statement of Monthly 5th of the following FA&CAO
Payment made through month
ECS/Bank
3 Quarterly return of Pay and Quarterly IInd following FA&CAO
Allowance month of Quarter
4 Book of Sanction Yearly 15th June of FA&CAO
following year
5 Annual Statement of Group Yearly 15th June of FA&CAO
Insurance Scheme following year
6 Annual Statistical Yearly 15th June of FA&CAO
Statement No.40 following year

__________________________________________________________________________________

ESTT. Section Chapter 13 Rev 00 Page 1 of 1 01.01.09 Approved By______________


Sr.DFM'S OFFICE , WEST CENTRAL RAILWAY , BHOPAL Process Manual

REGULAR PAYSHEET PROCESSING

Regular Paysheets Recd. From


Personnel,RPF,RRB,ENGG Depts.

AU6 Nos.
Alloted

Scale Check

Internal Checking of Paysheets for


Discrepancies

NO Preparation of CO7. Put


IF
up to ADFM for
ERRORS
Signature

YES

Paysheets along with


Send Back to Dept. Posting in SAR in case of
Deduction Voucher Handed
for Rectification Gazetted Officers Paysheets
Over to Pay Office Through
Books Section

After receipt of Paysheets By Books section


Cheques are prepared and Cheques alongwith CO7s
Paid Pay sheets are sent back by Pay office, after
and other vouchers handed over to Pay office staff for
payment having been made to the employee, to the
EFT/ECS payment data is forwarded to Central Bank
Records section.The activity of Record section which
Of India for onward transfer the amount to respective
issues acquittance certificate to Divisional Cashier is
bank of the employee.The process of Books section
defined in Admn section procedure manual.
defined in Books section procedure manual.

END

ESTT. SECTION CHAPTER 14 REV 00 01.01.09 Approved By__________


SR.DFM'S OFFICE, WEST CENTRAL RAILWAY, BHOPAL Process Manual
SPECIAL PAYSHEET PROCESSING CHART

Special Paysheets, Payorders, PLB


Paysheets Recd. From Dept.

AU6 Nos.
Alloted

Internal Checking of Paysheets for


Discrepancies

NO Preparation of CO7. Put


IF
up to ADFM for
ERRORS
Signature

YES

Paysheets along with


Send Back to Dept.
Deduction Voucher Handed
for Rectification
Over to Pay Office Through
Books Section

After receipt of Paysheets By Books


section Cheques are prepared and Paid Pay sheet sent back by Pay
Cheques alongwith CO7s and other office to Records section.Record
vouchers handed are over to Pay office section activity defined in Admn
staff.The process of Books section is defined section procedure manual.
in Books section procedure manual.

END
ESTT. SECTION CHPATER 15 REV 00 01.01.09 PAGE 1 OF 1
APPROVED BY__________
SR.DFM'S OFFICE, WEST CENTRAL RAILWAY, BHOPAL Process Manual

ESTT. SECTION CHPATER 15 REV 00 01.01.09 PAGE 1 OF 1


APPROVED BY__________
Sr.DFM'S OFFICE, WEST CENTRAL RAILWAYM BHOPAL Process manual

Proposal Cases/ Other Claims Processing Chart


Proposals Received For Fixation of
Pay & Other Anamolies, W C Act,
Medical and Other Claims

Entred in the
Proposal register

Scrutinity of Proposals

Vetting/ Concurring or Seeking


Clarification

Put up to ADFM for


Persual/ Approval

Return to Dept. for Preparing


Parsheets/ Payorders

The procedure after


receipt of Pay sheet/Pay
orders is defined in
Special pay sheet
processing chart.

END

ESTT.SECTION Chapter 16 Rev 00 01.01.09 page 1 of 1 Approved By__________


SR.DFM'S OFFICE, WEST CENTRAL RAILWAY PROCESS MANUAL

LIST OF RECORDS
Section: ____________________
ESTABLISHMENT
Record NO. Format No., if
S. No. Record Name Records Custodian Retention Period
any
DP Register AC/BPL/ESTT/DPR/01 A1412 AA 10 years
1

2 Policy file AC/BPL/ESTT/ POLICY/02 AC/BPL/ESTT./policy SO 5 years

Special pay sheet passing Register AC/BPL/ESTT/ SPL/03 G.30 F/L/&CW AA 10 years
3

PLB passing Register AC/BPL/ESTT/PLB/04 AA 5 years


4

JV Register AC/BPL/ESTT/ JVR/05 G.359 AA 5 years


5

CO7 passing Register AC/BPL/ESTT/ CO7/06 A.209 AA 5 years


6

7 Pay order passing Register AC/BPL/ESTT/PO/08 AC.298/G.1688 SO 5 years

AC/BPL/ESTT/ FSC/09
8 FSC posting Register A.A. 5 years

CO6 Register AC/BPL/ESTT/ CO6/10


9 A.A. 5 years

Salary Audit Register AC/BPL/ESTT/ SAR/11


10 A.A. 10 years
A.1305
Saving Register AC/BPL/ESTT/ SAVING/12
11 S.O. 5 years

Cash Award Passing Register AC/BPL/ESTT/ CASHAWARD/13


12 A.A. 5 years

Objeciton Item Register AC/BPL/ESTT/OIR/14


13 S.O. 5 years

L.P.C Register AC/BPL/ESTT/ LPC/15


14 S.O. 5 years

O.T.and other allowances statements AC/BPL/ESTT/ OT/16


15 A.A. 3 years

NOTE: Before destruction of above


records (in case of retention period is
over), SR.DFM ‘S prior approval will be
required. Further, a circular may be
issued to all concern asking them to
withdraw any record from destruction if
required by them for any purpose.

ESTT.SEC. CHAPTER 17 page 1 of 2 Rev 00 01.01.09 Approved BY_______


SR.DFM'S OFFICE, WEST CENTRAL RAILWAY PROCESS MANUAL

ESTT.SEC. CHAPTER 17 page 2 of 2 Rev 00 01.01.09 Approved BY_______


SR.DFM’S OFFICE , WEST CENTRAL RAILWAY BHOPAL PROCESS MANUAL

CHANGES TO PROCESS MANUAL

Amendment New
Date Section Particulars of Amendment
No. Rev No.

_______________________________________________________________________________________

ESTT Sec Chapter 18 Rev:00 01.01.09 Approved by _______________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual

Standards of financial propriety

These rules also known as Canon Of Financial Propriety are the guiding principals to
be followed while incurring any expenditure from the Public Fund , therefore due
regard must be paid to these golden principals as given below :
(1) The expenditure should not prima facie be more than the occasion demands, and
that every Government servant should exercise the same vigilance in respect of
expenditure incurred from public moneys as a person of ordinary prudence would
exercise in respect of the expenditure of his own money.

(2) No authority should exercise its powers of sanctioning expenditure to pass an


order which will be directly or indirectly to its own advantage.

(3) Public money should not be utilized for the benefit of a particular person or
section of the community unless—

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


(ii) A claim for the amount could be enforced in a court of law; or
(iii) The expenditure is in pursuance of a recognized policy or custom.

( 4 ) The amount of allowances, such as travelling allowances, granted to meet


expenditure of a particular type, should be so regulated that the allowances are not on
the whole sources of profit to the recipients
- ( 116 FI )

__________________________________________________________________________________________________

ESTT Section: Chapter 2 Rev 00 Page 1 of 1 01.01.09 Approved By______________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual

INTRODUCTION :

The main function of Establishment section is to carry out internal checks based on
prescribed rules and regulations. Scrutiny of claim cases, Vetting of Vouchers, concurrence of
Proposals, and passing the claims are the four major categories.There functions are performed with
respect to the establishment Code, Establishment Manuals, Master Circulars issued by Railway
Board and various acts, regulation, laws and by-laws, schedule of powers and sanctions.

It is worth mentioning that Railway is having a separate set of rules and regulations though akin to
the ones issued by Ministry of Personal, Government of India. The Canons of Financial Property and
Fundamental Rules and Subsidiary Rules from the basis of guiding principals for establishment
matters. Efforts are being made in the manual to standardize the working and provide guidelines for
working to the staff involved.

The Accounts Code also provides that the internal check of establishment claims should be
conducted with reference to the Indian Railway Codes, Other authorized rules and regulations and
the extent orders and sanctions as amended from time to time.
-1202 A1

Further in the disposal of establishment claims, quickness is as important as accuracy, as delays in


personal matters cause inconvenience to the staff concerned.
-1203 A1

________________________________________________________________________________________________

ESTT. Section Chapter 3 Rev 00 Page 1 of 1 01.01.09 Approved By______________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual
Sources and References:
All the Codes issued by Ministry of Railways have Presidential sanction,
therefore; any violation of these provisions would be treated as major
irregularity. The circulars issued by Railway Board are extension of codal
provisions & they bear the same sanctity. In addition to the above
documents, there are Manuals, prescribing the procedures to be followed in
discharging the functions. These manuals are issued by Zonal Railways with
the approval of FA&CAO. Some of the specific instructions contained in
these manuals may vary from Zone to Zone.
The difference between Codes and Manuals is that the codes give rulings
and authority i.e. what to do and what no to do, whereas the Manuals
provide for how to do a thing.
In this Process of framing document on Establishment matters, efforts have
been made to incorporate vital aspects of Codes and Manuals and at the
same time standards and targets have also been incorporated.
The working of Establishment section is guided by the following
documents:
• Indian Railway Accounts Code, part I
• Indian Railway Establishment Code, Part I & II,
• Railway Board’s circulars,
• Indian Railway Establishment Manual, Part I & II,
• Instruction/guide lines issued from time to time by Railway Board, which is
available in the form of Master circulars on Estt. Matters.
• Instruction issued by HQ.
• Schedule of Power on Establishment Matter (SOPEST) issued by G.M.
• The Master circulars issued by Railway Boards are available on the
following issues:

The above codes and circulars are also available in the Indian Railway website.

In these documents instead of reproducing details from codes and manuals the
relevant Para has been quoted in abbreviated form. For example 1335 A1
means paragraph 1335 of Chapter XIII of the Indian Railway Code for the
Accounts Department Volume-I .

_______________________________________________________________________________

Estt.Section Chapter 4 page 1 of 1 Rev 00 01.01.09 Approved by ___________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual

SCOPE OF WORK IN THE ESTT SECTION

• Checking and Passing of: -


i) Regular Pay sheets
ii) Special pay sheets
iii) Pay orders (like cash award, W.C.A. Claims, Court attachment S.B.F. etc.)
iv) Arrear claims like HRA, CCA, and NDA ,TA etc.
v) P.L.B pay sheets
vi) T.A. Bills
vii) Reimbursement of tuition fees
viii) Verification of various claims related with different allowances like TA, OT ,
Mileage, encashment of leave, children education allowance etc.
• Scrutiny and vetting/ concurrence of proposal Cases of:
i) Medical Reimbursement
ii) Workman compensation/ Ex-gratia lumpsum compensation
iii) Fixation of pay
iv) Stepping of pay
v) ACP cases
• Maintenance of:
i) Foreign Service Contribution Register (FSC)
ii) Scale Check Register
iii) Salary Audit Register (Including Index Register)
iv) Cadre Register
v) Saving Register
vi) Objection Item Register
vii) Service Records of Gazetted officer
viii) D.P. Register
ix) Limited Currency Register
x) Pay Order Passing Register
xi) Special Pay sheet passing Register
xii) P.L.B. Passing Register
xiii) Provisional Payment Register
xiv) Inward and Outward LPC Register

_________________________________________________________________________________

ESTT. Section Chapter 5 Rev 00 Page 1 of 2 01.01.09 Approved By_____________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual

xv) CO6 Register


• Preparation / Issue of:
i) JV
ii) ATD/ATC
iii) Quarterly returns of Income Tax
iv) Various periodical returns (GIS, Statement no.40, Pay and Allowances,
Salary through Bank/Cheque, Cadre statement)
v) Form 16 related with Income Tax.
• Running of Audit trail
• Reply of :
i) PNM/PPM items.
ii) Headquarters/other office correspondence including RTI reply.

_________________________________________________________________________________

ESTT. Section Chapter 5 Rev 00 Page 2 of 2 01.01.09 Approved By_____________


Sr.DFM’s Office, West Central Railway, Bhopal Process Manual
SECTIONAL PROCEDURE

CHECKS TO BE EXERCISED IN VARIOUS ESTABLISHEMENT CLAIMS


The main internal checks summarized in the following paragraphs are illustrative only
and not exhaustive.
INTERNAL CHECK OF ESTABLISHMENT CLAIMS
i). The check exercised by Accounts Officers on the financial transactions of the Railway on
behalf of the Railway Administration is called internal check. Unless an exception is
specially permitted in any particular case or transaction, whether relating to receipts or
expenditure, it should be checked cent percent and no transaction should be brought into
account before they have been completely checked. Internal check is carried out both
under pre-check and post-check system, depending on the transactions.
[ 801 A1]
1.) PRELIMINARY CHECK ON THE PAY BILLS
In the computerized pay roll the CO6 which is a mark or receipt of bill in Accounts office,
is system generated. The deduction from pay bill like HBA, PF etc. also taken care of by
the system and the recoveries are transferred to the ledger of the employees
automatically. The most important authentication for passing of bill is CO7 where
enfacement is signed by SO /ADFM or other Accounts officer as per delegation. Generally
checks are carried out at three stages in the Accounts office i.e., AA, SO and Assistant
officer. Section officer is a key stage of scrutiny and he is a supervisor who keeps the
policy files with him. He is responsible for application of rules and regulations and is
responsible to provide guidance to the subordinate staff. The SO is also responsible for
initial test checks and MIS of the section. He is required to keep Accounts officer apprised
of the difficulties faced in the section and also status of the work.
Similarly, it is also necessary that the latest amendments in the rules are
known to Accounts staff .In case of over payment, Accounts Officer is competent to
recover the amount earliest possible even by enforcing the recovery.
The following points should be looked into while exercising preliminary check on pay bills
that: -
A. It is in the prescribed form, in original and all columns are duly completed.
B. The bill is authenticated and the signature on the bill is genuine and is in ink.
C. The bill is signed by the officer competent to sign it.
D. It bears a certificate wherever necessary from the responsible officer that the
services for which payment is claimed have actually been rendered.
E. If the proof of the correctness of the claim does not accompany the bill, a certificate
is furnished that the claim has been checked with the relevant documents and
found correct.

____________________________________________________________________________________________

ESTT. Section Chapter 6 Rev 00 Page 1 of 29 01.01.09 Approved By______________


SR.DFM’S OFFICE, WEST CENTRAL RAILWAY, BHOPAL PROCESS MANUAL

F. The officer submitting the bill attests all corrections /cuttings.


G. All required documents are duly attached with the bill.
H. The certificates required under rules are recorded in pay sheets under the
signature of a Gazetted Officer e.g.:-
i) HRA has not been drawn in respect of those who are on leave, in excess of
what is admissible.
ii) Certified that the Railway servants for whom HRA has been drawn in this
bill have not been provided with any Govt. accommodation.
iii) Certified that all adjustments required in respect of pay, allowances,
deduction etc. on account of the assumed attendance adopted for the
immediately preceding wage period have been carried out in this bill based
on actuals for the same period and no items have been left over unadjusted.
iv) It is to be seen that funds are made available for Special pay sheets/ Pay
orders.
I. In case of Regular salary whether scale check has been done and scale check
statement is enclosed.
J. It is to be ensured that regular pay sheet is accompanied by supporting documents
like Memorandum of differences, Absentee statements, Recovery statements etc.
K. It is to be seen that NDA, NHA, Overtime, Mileage etc. claimed in the pay sheet is
accompanied with relevant sanctioned statement sanctioned by the competent
authority.
L. It is to be insured that DA, HRA, Transportation allowance claimed in the pay sheet
is properly worked out and it is as per the current rules.
M. It is to be seen that the Washing Allowances, Nursing Allowances, Overtime etc. are
claimed by the eligible staff and certificate regarding the same is available on Pay
sheets.
N. It is to be ensured that the pay sheets bear necessary certificate as mentioned in
Para 1205 to 1212 AI .
1.1) DOCUMENTS THAT SHOULD ACCOMPANY THE SALARY BILLS
The following documents are to be received in Accounts Office along with the salary bills: -
• Memorandum of differences (MOD).
• Absentee statements.
• Increment statements. (Gazetted Officers)
• Rent roll statements for the month of April - Rent variation statements for the
subsequent months for quarters occupied by Railway servants.
• Electrical energy charges statement (once in six months), prepared after adjusting
the amount recovered in the preceding Six Months against the amount liable to be
recovered on actual consumption basis.

ESTT SECTION CHAPTER 6 Page 2 of 29. Rev:00 01.01.09 Approved by_________________


SR.DFM’S OFFICE, WEST CENTRAL RAILWAY, BHOPAL PROCESS MANUAL

• Statement of PF recovery.
• List of workshop debits, stores debits and station debits recoverable through the
pay bills.
• Deduction sheets showing recoveries made through pay bills on account of:-
i. Railway institute fees and subscription.
ii. Amount due to Railway Co-operative credit Banks/societies.
iii. Amount due to staff Benefit Fund towards Loans.
iv. Diet charge & recovery statements.
v. List of premium due on Life Insurance policies realized from the pay of the
insured.
vi. Court attachments.
vii. Income tax schedule.
viii. Statement showing the recoveries of various advances.
ix. Allocation statements.
x. Certified summary of T.A., OT, NDA, and other allowances.
xi. Sanction of competent authority where provisional payment is authorized.
xii. In case an employee is entrusted with custody of cash or stores, a certificate
should be furnished to Accounts office along with the settlement bill that they
have duly returned all Govt. property in his charge, the fact should be
indicated in a note attached to the pay bill. The note should clearly show the
particulars of property not yet handed over to the Railway and action taken to
their value and the action taken to recover the value of the same.
1.2) METHOD OF CHECK:
The internal check of pay and allowances charged through pay bills should be
conducted on the basis of the information given in the Memorandum of differences
(MOD) and the list of absentees, which accompany the bills. If these two statements are
not available the check is to be made on the basis of the information given in the bills
itself. MOD statement should invariably accompany the pay sheet.
NOTE: (In regard to Group D staff, the submission of Memorandum of Differences
may be dispensed with in consultation with the Accounts Officer and the necessary
check should be applied in his local inspections.) Submission of Memorandum of
Differences in the case of Officers Pay Bill is not necessary.
[1205 A1]
1.3) EXTENT OF CHECK
A complete check should be applied on:
i). The details in the MOD or to the corresponding entries in the Pay bill itself.

ESTT SECTION CHAPTER 6 Page 3 of 29. Rev:00 01.01.09 Approved by_________________


SR.DFM’S OFFICE, WEST CENTRAL RAILWAY, BHOPAL PROCESS MANUAL

ii). The entries under the column “Gross” pay and allowances claimed in the bills,
to only those who are affected by the Memorandum of Differences, whether
recorded in the Memorandum of differences or in the bills.
iii). The entries in the other columns of the bills.
iv). The admissibility of increments drawn with the statement of increments.
v). All calculations and totals
[ 1206- 1212 A1]
2.0) Detail procedure for check of various other establishment claims
(2.1) Workman Compensation Claims
Compensation to Railway servants on death or injuries attributable to and
due to Railway service shall be admissible under the Workmen's Compensation Act,
1923. In cases where the Workmen's Compensation Act is not applicable, the
compensation shall be granted under the Railway Services Extra-ordinary Pension
Rules, as amended from time to time.
[W.C.ACT 1923]
(2.1.1)I.O.D.PART (A)
Procedure for IOD cases/Workmen Compensation Claims:
According to W.C.A., 1923 the employee who is injured on duty
or died while performing his duty will be entitled for compensation. In Railways certain
category of employees who have lost their earning capacity partially /permanently or
died while performing their duty, are covered under this Act. The employer i.e. Railway
is liable to arrange payment of compensation to the employee or in case of death to the
legal heir of the deceased employee. The category of employees treated as workman, is
as under: -
i) Temp/Casual labor (who attains MRCL status)/Permanent employee (except
staff attached in offices).
ii) The category of Pay clerk will fall within the definition of workman because
they, in the course of their employment, have to do out door work for
disbursement of salary at different points.
iii) Bridge Inspector.
iv) Drivers (loco running staff), Fireman are treated as workman under section (2)
(1) (n) (i) of WCA.
v) Vendor /waiter attached in catering Department.
Types of I.O.D. Cases:
Types of Injured on duty cases and rates of payable amount are as follows:
A.) Temporarily partial disablement –
A half of monthly payment of the sum, equivalent to 25 % of the monthly
wages of injured workman is payable, for a period of disablement or five
years, which ever is shorter.
ESTT SECTION CHAPTER 6 Page 4 of 29. Rev:00 01.01.09 Approved by_________________
SR.DFM’S OFFICE, WEST CENTRAL RAILWAY, BHOPAL PROCESS MANUAL

b.) Permanent partial disablement –


Under this category the payment should be made as per injury specified in
part II of Schedule I in W.C.A. 1923 on the basis of certificate issued by
qualified medical practitioner.
C.) Permanent total disablement –
An amount equal to 60% of monthly wages of workman injured multiplied
by relevant factor of Schedule IV of WCA 1923. Or Rs.60000/-whichever is
more.
D.) Death Cases-
An amount equal to 50% of the monthly wages of the deceased workman
multiplied by relevant factor of Schedule IV of W.C.A.1923. OR amount of
Rs.50000/- whichever is more.
NOTE: Where the monthly wages of workman is more than Rs.2000/- his monthly wages for
the purpose of clause (c) and (d) shall be deemed to be Rs.2000/- only.
2.1.3) Conditions for payment under W.C.A. (1923).
Railway is liable to pay compensation to the workman or to his dependant in case
of his death or total or partial disablement for period exceeding three days, but employer
shall not be liable to pay any compensation in respect of injury (not resulting into death)
caused by an accident, which is directly attributable to –
i) The workman having been under the influence of drinks or drugs at the time of
accident.
ii) The willful disobedience of the workman to an order expressly given or the rules
expressly framed for the purpose of securing the safety of workman.
iii) The willful removal or disregard by the workman of any safety guard. Or devices
provided for the purpose of safety to the workman.
The employer should also be liable to pay compensation if a workman contacts any
disease, which has arisen out of and in the course of employment. In the case of
workman murdered by fellow workman on premises of the employer during the rest,
employer is not liable for compensation to the workman. The compensation claims cases
in prescribed forms should be filled up by personnel department in duplicate and is
forwarded to Accounts Deptt for scrutiny and verification of the calculated amount
prepared as per Schedule I of W.C.A.(1923).The case will be returned to Personal
Branch dully concurred for obtaining sanction of competent authority and preparation
of Pay Order in favour of Labor Commissioner. The payment of compensation under
W.C.A. 1923 should be made promptly within stipulated period of one month other
wise in case of any delay the family members of suffered workman can file a suit in the
court of law and Hon’ble Court may pass orders for penalty of Interest @ 12% or 18 %
per annum. The claims are received from the Welfare section of the Personnel
department. The claims are verified on the basis of the following details:
ESTT SECTION CHAPTER 6 Page 5 of 29. Rev:00 01.01.09 Approved by_________________
SR.DFM’S OFFICE, WEST CENTRAL RAILWAY, BHOPAL PROCESS MANUAL

a) The various documents furnished like AC message, Eyewitness statement at the


Site of accident, Accident Report, Post mortem report, Date of birth certificate
etc. are studied in detail.
b) The relevant factor as per Schedule IV of the Act is considered for calculating
the compensation.
c) A list of injuries deemed to result in permanent total disablement and
permanent partial disablement is provided in Schedule I of the Act.
d) The last twelve months emoluments are also considered for calculating
compensation amount.
The maximum amount payable as amended from time to time is also to be
considered while making payment as per Para 4 of Chapter 2 of the Act.
2.2) I.O.D. PART B:-
2.2.1) EX Gratia Lump Sum Compensation
Ministry of Personnel vide their O.M. NO.45/35/97-P & PW(C) dated 11-09-98
has introduced a new scheme of “Payment of Ex-Gratia Lump sum compensation” to the
family of Central Govt. civilian employee who dies in harness, in Railway the same was
circulated vide RLY BD’s letter no. E (W) 99/CP-1/1 Dated. 5-11-99.These orders shall
apply to all cases of death in harness occurring on or after 01-08-1997.The conditions
governing the payments of Ex- Gratia lump sum compensation and the guidelines have
been indicated in the Annexure of the above O&M. The main condition to be satisfied for
the payment of Ex - Gratia Lump sum compensation is that the death of the employee
concerned should have occurred in the actual performance of their bonafied duties. As
on date the minimum amount of Ex - Gratia lump sum compensation to the family of
deceased Railway employee who died in performing their bonafied duty under various
circumstances are broadly divided into following categories: -
SR Condition of Accident Minimum
No. Amt.
Payable
1 Death occurring due to accident in the course of RS. 5 Lakh
performance of duty
2 Death occurring due to accident in the course of RS. 5 Lakh
performance of duty attributable to Acts of violence by
terrorist or anti social elements etc.
3 Death occurring due to: -
A (a) Enemy action in international war or boarder Rs.7.50 Lacs
B (b)Action against militants, terrorist, Extremists Rs.7.50 Lacs

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The proposals of Ex - Gratia lump sum compensation is prepared in duplicate


with all relevant documents i.e. Copy of AC Message (XXR), SOD, and Post Mortem
report, Rough Sketch of accident Site. Witness etc. as per guidelines given in GM (P)
JBP Letter no. WCR/PHQ/1410/WEL/Ex Gratia Payment Dtd 22-08-2006 and
submitted to Accounts for scrutiny and vetting. The claims are scrutinized as per
guidelines and put up to Sr. DFM through ADFM for vetting. While scrutiny of the case
the amount previously paid as Ex - Gratia interim and through W.C.A. is deducted from
the amount payable through Ex- Gratia compensation scheme and net payable amount
is vetted. After getting approval of SR. DFM the cases are returned to Personal Branch
for preparation of claim in prescribed proforma and with joint signature of SR.DPO and
SR.DFM it is put up to DRM for approval. After getting approval of DRM the cases are
forwarded to HQ for obtaining concurrence of F.A. &. C.A.O and personal approval of
G.M (As per instructions contained in Rly BD’s Letter no. E (W)/2006/CP-1/37 Dtd. 01-
05-2007).
NOTE Rly BD’s vide their Letter no. E (W)/2006/CP-1/37 Dtd. 01-05-2007 has fixed the
maximum time limit of three months period to settle down the cases so as to cause
minimum hardship to the claimants.
ANNEXURE – 1 (Documents required along with IOD cases)
(1) AC message (XXR Message) prepared in duplicate by Depot -In -charge to inform
HQ the full family particulars and Service Record of the deceased employee. All
above documents should be signed by Depot –In- charge and Welfare Inspector
and counter signed by Gazetted Officer of concern Department and Personnel
Branch.
Time Limit: 3 days
For Vetting
A.A. 1 DAY
S.O. 1 DAY
ADFM/SRDFM 1 DAY
Joint Signature 1 Day
2.3) Proposal cases of Medical reimbursement
When Railway employees or their family members are taking treatment outside Railway
Hospital in emergency or are referred by Railway Doctor for specific treatment in Govt.
and other recognized hospital or for specific test from market for which facility is not
available in Railway Hospital reimbursement of medical expenses incurred in the
treatment of the tests is admissible. These proposals are broadly divided in two
categories: -
(I) Referred Cases;
When a patient referred by Railway Doctors to Govt. Hospitals or recognized
hospitals for treatment or specific test.
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(II) Non- Referred Cases


These cases relate to a medical condition which require urgent attention and there is
inadequate time to report the medical condition to a Railway doctor. Instead, to save the
precious life, the matter is referred to a private doctor who is nearest to the place of
incident. Clearly, no referral of Rlys doctor is available to bear the expenses. All the
claims are received from employees through CMS Will scrutinize the case as per
checklist and guidelines circulated by HQ vide JPO No. HQ/AC/ENG/MED – REIM
/459 –III Dtd 10-08-2005.
And as per the CGHS rates list the acceptable amount is calculated and
recommended for vetting / concurrence as the case may be. When the CGHS rates are
not available case is disposed of with the approval of CMS in consultation with associate
finance. In Accounts office the case verified against the said JPO and other circulars
issued by Railway Board or HQ from time to time. When Pay Order received in Accounts
Office the following steps shall be taken:
• CO6 No is given to the Pay Order.
• It should be seen that required procedure is followed and all documents are
available.
• Funds are available for the current year.
• Sanction of competent authority is enclosed.
• Amount shown on Pay order is tallied with the amount concurred.
Time Limit: 10 days for vetting/concurrence 03 days for payment .
2.4) Proposal cases
Proposals received in the section are broadly on account of implementation
of ACP scheme, restructuring of cadre, Stepping up of Pay, Pay anomalies in fixation
because of not being considered minimum benefit of Rs.25 w.e.f.01-01-86 and Rs. 100
w.e.f. 01-01-96 at the time of fixation on promotion. Up gradation of pay scale, wrong
fixation of pay etc.
2.4.1) Proposal cases of Assured Carrier Progression (ACP) Scheme: -
Employees particularly at lower level used to retire in the same grade in
which they were appointed. Railway Board vides their Letter No. PC-V/99/1/1 Dtd 01-
10-1999 allowed two promotions in their service period. This progression is given after
completion of twelve year of continuous service and second progression at the end of
twenty-four year service.
NOTE: These orders are effective from 01-10-99 onwards only. (Authority: Railway
Board Letter No. PC-V/2004/ACP/1 Dtd 31-03-2004)
2.4.2) PROPOSAL CASES OF STEPPING UP OF PAY
The claims are verified on the basis of following details: -

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a) Service details of both (senior and junior employee), submitted in comparatives


statement are checked with the entry of the Service Record.
b) Name of both employees are appearing in seniority list.
c) It is ensured from service register that senior employee has not refused
promotion earlier.
d) It is verified that both the employees has same channel of promotion and were
in identical scale.
e) Para 1313 of Estt. Code Pt. II shall be taken into consideration while dealing
with the proposal.
f) Latest instructions issued by Railway Board in this regard under VIth PC
recommendations may also be referred to.
2.4.3) PROPOSAL CASES OF MINIMUM BENEFIT OF PAY FIXATION AND OTHER
ARRREAR CLAIMS.
Railway Board on recommendation of IV PC has issued order vide their letter No. PC-
IV /86. /IMP/36 Dtd 21-06-88 for grant of minimum benefit of Rs.25 at the time of
fixation of pay on promotion and it was subsequently enhance to Rs. 100/-after
implementation of VIth pay commission vide Bd’s letter No. FE-II/99/FR/1/1 Dtd. 27-
09-99. Proposals cases for other arrear claims pertaining to a period prior to 3 years of
various nature such as arrears of family planning, HRA, Non payment of increment
due to over sight, Transportation allowance arrears, CCA etc. are also dealt in the
section. Each claim is examined for reasons of non-payment of dues to the employee.
The limit up to which arrears claims can be admitted is specified in chapter 10 of
IREM VOL.I amended vide advance correction slip of 1 of 2003.
Time Limit- Within 20 days.
3.) RECONSTRUCTION OF SERVICE RECORD:
Service records when misplaced are to be reconstructed. The proposals for
reconstruction should accompany the following documents:-
a) Personal file of the employee maintained by the Personnel department.
b) Document supporting date of birth.
c) Copy of the Appointment order.
d) Date of promotion to be supported by order copy.
e) Leave Account in original.
The yearly increments are to be checked with the leave account, penalties if
any affecting increment etc. For this purpose JA grade committee constituting
three officers from Personnel, Accounts and of department concerned is required to
scrutiny the records and sign the recasted Service Record.
4.) SPECIAL PAYSHEETS/PAY ORDERS
Scrutiny in Accounts Office is done with regard to: -
a) Whether the competent authority has sanctioned the claim.
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b) Whether the claim is supported by due / drawn statements, arrears statements


etc. which has already been checked by this office at the time of concurring the
proposal.
c) Whether the competent authority has signed the pay sheet.
d) Whether accounts concurrence has been obtained for arrears /claims over one year
old and sanction of competent authority is obtained accordingly. If required
Rly.Board/Headquarter’s approval has been obtained as per nature of claims.
e) The name of the employee, designation and amount of pay sheet/pay order tallies
with the amount concurred by this office. - [1413 A1]
5.) CHECKS ON PAY BILLS
I)Pay Bills showing the Pay and Allowances for Group A, B, C and Group D employees are
received in the Accounts Office to be checked and passed for payment. The pay bills
have to be received according to a schedule prepared by SR.DPO and SR.DFM so as to
enable accounts office to conduct thorough checks. Bill drawing units should be advised
for prompt submission of salary bills to Accounts Office.
ii) A list generated on computer showing the details should be maintained and filed,
since CO7 preparation has also been computerized. (For details the Manual of AFRES
on Establishment Section may be referred to).
iii) However, in the following cases, separate bills can be admitted irrespective of the
date fixed for the submission of the Pay Bill of the unit or section to which the employee
is attached.
Time Limit - Within 3 Days.
6.) INTERNAL CHECK - GAZETTED OFFICERS
Apart from the above-mentioned checks, the following checks shall be exercised for
internal check of pay bill of Gazetted staff. Various records maintained in the Accounts
office for this purpose are as follows (as per Para 1305 A1): -
i). Salary Audit ledger (FORM NO. A 1305)
ii). Income Tax recoveries register
iii). Issue of Pay Slips (FORM NO. A 1311)
iv). Leave accounts of Gazetted staff
v). Last Pay Certificate.
vi). Maintenance of service cards. (PARA 1318 A1)
vii). Cadre check and cadre register (PARA 1319 TO 1323 A1)
NOTE: - In the case of Gazetted officers, the ultimate responsibility for the internal check of
their bills rest with the Gazetted section of the FA & CAO's office and unit Accounts
Officers, and they shall maintain all the records necessary for this purpose.

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7.) CADRE REGISTER AND CADRE CHECK


The main object of maintaining cadre register is to ensure that the number of posts
sanctioned for each grade in a department shall in no case be exceeded without the
sanctions of competent authority.
a) Separate folios/portion thereof should be set apart for each category in a
department.
b) The number of sanctioned post (both permanent and temporary) for the different
categories of the employees should be entered in the top of the folio. The
temporary sanction should be shown separately.
c) The increase/decrease in the cadre strength should be indicated in the remarks
column. The total number of sanctions received in the section should be posted
correctly. At the end of every month, the entries made should be checked from
the salary bills for the month. Changes made during the month, and in case two
employees draw pay against one post whenever it is permissible should be
recorded clearly. Similarly leave reserve posts if any should also be indicated.
Departmental summary should be prepared as a measure of test check to ensure
that there is no excess or irregular operation. The discrepancies noticed, if any,
should be put up to the Accounts officer and the matter should be taken up with
personnel branch for immediate action.
-[1320 -1323 A1]
8.) INCOME TAX
Accounts office is responsible for correct recovery of income tax and for transfer timely of
the recovered amount to the IT Department. On basis of estimated income for the year, Bill
drawing units should recover approximate amount every month from the salaries of the
employees. For this purpose, the Bill drawing officer should send a statement to the
Accounts Office every year in advance, showing the particulars of employees, alongwith the
detail estimated income and savings under various permissible categories. This should be
verified with reference to the pay bill of the officer concerned.As soon as the Accounts for
the financial year are closed, Form No.16 prepared by Personal Branch is required to be
sent to Accounts for verification. The same has to be returned after verification for
disbursement to the officers for filling the Income Tax return.
-[1232 – 1233 A1]
9.) RECOVERY OF WATER CHARGES
Bill drawing officers shall recover water charges at the prescribed rates from all the
employees, who are in occupation of Railway Quarters. Establishment Section has to
ensure while admitting the salary bills of employees that the water charges have been
recovered correctly from all the employees who are in occupation of Railway Quarters.
Chief Engineer will advice the rate at which the water charges are to be recovered.
10.) INCREMENT STATEMENT
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a) In the cases of Gazetted officers, the increment statement is sent to


Accounts Office by bill preparing authority for certification and inclusion in salary
bills. A copy of which is enclosed with the salary bills.
b) The increment statement provides for a column wherein, all periods which do not
count for increment i.e., periods of suspension, leave without pay, leave not counted for
increment during officiating tenure etc. should be indicated.
11.) SUPPLEMENTARY BILL
Drawn and due statements will be prepared and sent to the Accounts Office whenever
there is need for supplementary claims. Relevant office orders will be verified to ensure that
the claim preferred through supplementary bill is genuine. At the time of checking the
drawn and due statements, Memorandum of differences and Absentee statements of the
regular bills for the months to which the supplementary claim relates should be verified to
see that it has not been passed for payment provisionally. Regular bills for the months
affected should also be verified. A copy of the certified Drawn and Due statement should
be sent to the bill preparing unit who will forward the supplementary bill, for the amounts
shown in the statement, to Accounts Office. The Bill will be passed for payment duly
making a cross reference in the certified Drawn and Due statement.
-[1405 -1413 A1]
Following checks are to be ensured before passing these bills: -
a) Whether competent authority has signed the pay sheet. i.e. Sr.DPO & APO.
b) Whether budgeting has been done for the claims.
c) Whether scale check has been done.
d) Whether pay sheet is accompanied by supporting documents like
Memorandum of differences, Absentee statements, Recovery statements, etc
e) Whether Mileage, over time, Night duty allowance, and National holiday
allowance claimed in proper statements sanctioned by the competent
authority support the paysheets.
f) Whether D.A., HRA, CCA etc. claimed in the pay sheets properly worked out
as per the extant rules.
g) Whether miscellaneous payments like T.A., Washing Allowances, the eligible
staff claims Nursing Allowances.
h) Whether all pay sheets bear necessary certificate as mentioned in
establishment code.
i) If any correction is seen, it is attested/signed by competent authority and
relevant authority letter is produced with the pay sheet.
12.) SCALE CHECK REGISTER
All sanctions in respect of non-Gazetted establishment as received should be
entered in scale check register in the prescribed form no. A1407 with separate folios for
each class or grade of staff and entries be attested by the S.O. of the section. The pay bill
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of each unit shall contain a summary of the sanctioned strength and the actual strength of
the unit. The actual strength shown in summary should be checked up with the actuals
charged in the bill at the time of passing it. Entries from the summary shall be posted in
the scale check register for the month concerned. The total strength of each category in
the division for the month will be compared with book of sanction available for each
category of staff of every department. Instances of excesses over the sanctioned strength, if
any should be taken up with the executive authorities concerned. Book of sanction should
be reconciled with Personnel Branch every year and certified Book of sanctions should be
maintained to verify the scale check.
-[1407A1]

13.) LAST PAY CERTIFICATE


When a Railway servant is transferred from one accounting unit to another a Last
Pay Certificate (LPC) showing the pay and allowances drawn by him and the date up to
which these have been drawn will be prepared by the bill preparing officer in a prescribed
form as given in Annexure V of Accounts Code Part - I and sent to the office to which the
Railway servant is transferred, duly counter signed by Accounts officer. The different
deductions made against him and the sums outstanding against him with particulars
thereof will also be shown in the LPC. The PF account number should invariably be
indicated in the LPC. The LPC is necessary document for preparation of monthly salary for
the office to which the Railway servant is transferred.
-[1212 A1]
13.1) REGISTER OF LAST PAY CERTIFICATES(INWARD AND OUTWARD)
a) Separate register containing the particulars of L.P.C. issued and received should be
maintained in the Establishment section of accounts office. As the LPCs constitute a
very vital link for the transfer of suspense balances, Provident Fund balances etc., it is
necessary to maintain these registers properly and updated.
b) The correctness of LPC should be checked up expeditiously and the same should
be forwarded to the accounts officer concerned. This register should be put up to the
Accounts Officer in the first week of every month for his information.
14.) TRAVELLING ALLOWANCE
a) Traveling allowance is an allowance granted to meet expenditure of a particular type
and should be so regulated that it is not on the whole a source of profit to the
recipient, and that utmost economy should be observed in the incidence of
expenditure on account of TA/DA.
b) Claims for Traveling Allowances for Non-Gazetted and Gazetted staffs are included in
the salary bills after the T.A. statements are certified in the Internal Checking
section of Accounts Office.

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c) Traveling Allowances statements submitted to Accounts Office should be


accompanied by T.A. Journals countersigned by the duly appointed controlling
officer personally except in respect of the staff whose pay does not exceed Grade Pay
Rs.4200/-( revised) in the VI- P.C.
d) The Bill drawing officer should furnish the following certificate in the Traveling
Allowance Statement for employees drawing pay Rs.5000/-(pre revised) that “The
claim for Travelling Allowance has been checked with the relevant rules, Travelling
Allowance journals and other records and found correct.” The claims in such cases
are not susceptible for any check in the Accounts Office except in regard to the rate
of Travelling Allowance admissible (verified with reference to employees’ Grade pay)
and the arithmetical accuracy to the claim. A test check of the original Travelling
allowance journals kept in the departmental office is made during periodical
inspections and any irregularities noticed in the preparation of claims for Travelling
Allowance is to be taken up with the departmental officer concerned. -
- [1213 to1214 A1]
14.1) Checks on TA BILLS:
a) While checking Traveling Allowance bills accompanied by journals it should be seen
that the competent controlling officer has in every case countersigned journals.
b) The pay, pay band and grade pay shown in the TA Bills should be test checked with
the pay bills, to ensure that the TA claimed is according to the grade pay and no
higher rate of TA is allowed.
c) Object of the journey performed in each case should be mentioned briefly and
precisely. It should be checked to see that the journey is performed in the interest of
the administration.
d) The timings of arrival at and departure from head quarters of trains shown in the
journal should be checked with the Railway Timetable in force. If the T.A. claimed is
at higher rate due to late arrival of Trains, the same has to be checked with reference
to late arrival certificates issued by the Station Staff.
e) In the case of staffs who are regularly on tour throughout the month, as for example
Traffic Inspectors, Commercial Inspectors etc, the continuity of the journeys should
be checked by comparing the opening entries of the journals under check with the
closing entries of the journal for the preceding month terminated by a halt at a
Station away from headquarters. It should be seen that the DA/TA is not claimed
continuously for more than a month in violation of the payment of wages act. It
should also be seen that no TA is claimed at the same station for more than 180
days continuously.
f) When a Railway servant is entitled to draw actual expenses, they should in the
absence of the orders to the contrary, be set forth in detail. In the case of claims for
road mileage, the rates of daily and mileage allowances should be checked with the
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rates laid down in appropriate rules and submission of the bus tickets should be
ensured.
g) The officer of Junior Administrative Grade should authorize journeys, beyond the
home line.
h) It is to be ensured with due verification of the records that Travelling Allowance has
not been claimed for the periods the employee was on leave of any kind.
i) The Travelling Allowance/ daily Allowance claims through Travelling Allowance
journals are to be prepared on the basis of journeys performed by the Railway
employees in their respective wage periods and not on calendar month basis. If an
employee has earned Travelling allowance/ daily Allowance for a continuous period
extending beyond the close of the wage period, the portion of the Travelling
Allowance claims following within that wage period alone should be claimed in the
Travelling Allowance journals for that wage period. The balance of Travelling
Allowance claims should be claimed in the Travelling Allowance journals for the
subsequent wage period to which they relate. If the journey performed by the
employee terminates at HQrs the first day of the next wage period, the T.A. for that
day can be included in the same T.A. journal.
14.2) TRAVELLING ALLOWANCE RULES
Following are the different kinds of allowances, which like T.A. are also controllable
heads of accounts i.e. the expenditure can be controlled under these heads:
i). Daily allowance
ii). Mileage Allowance
iii). Consolidated Travelling Allowance
iv). Conveyance Allowance
v). Actual cost of Travelling.
14.3) Daily Allowance on Tour Under VIth Pay Commission:
In super session of Rule 1611 IREC – Vol II (2005 Edn.) and Board’s Letter no. F(E)
I/98/AL-28/9 Dated 24.4.98 the grouping of grade pay ranges and the rates of daily
allowance are revised as follows w.e.f. 01-9-08 subject to the existing conditions:-
Grade pay Daily Allowance
(per day)
Officers drawing grade pay of Rs. 10000 and above And Rs.520
those in pay scales of HAG + and above
Officers drawing grade pay of Rs. 7600 to 8900/- Rs.460
Officers drawing grade pay of Rs. 5400 to 6600/- Rs.400

Officers drawing grade pay of Rs. 4200 to 4800/- Rs.340


Officers drawing grade pay of Rs. 4200/- Rs.210

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Note: The TA/DA rates mentioned in the Para on mileage allowance for road journeys and
daily allowances on tour shall be increased by 25 % whenever Dearness Allowance
payable on the revised pay structure goes up by 50 %.
Daily Allowance to an employee will be admissible as under:-
(A) Less than 6 hours – 30% of daily allowance.
(B) More than 6 hours but does not exceed 12 hours – 70% of daily allowance.
Full Daily allowance will be admissible for each completed day or more than
12 hours.
(C) If a railway servant under takes more than one journey on any calendar day,
he can draw Daily allowance separately for each journey beyond a radius of
8 kilometers but the total Daily Allowance for such journeys on any calendar
day shall however be subject to a maximum of the full Daily Allowance
admissible for each day of absence from midnight to midnight.
D.) When a train arrives late less than 15 minutes the time of arrival of the train
will be taken as time recorded in the Time Table. If the train arrives late
more than 15 minutes the certificate of Station Manager will be required.
Note: I Engineering subordinates and staff of signal and Tele-Communication and Electrical
Departments when travelling by Trolley within their jurisdiction will be eligible for
Travelling Allowance if the actual distance travelled is more than 8 kms, from the
Head Quarters. The actual distance along the permanent way from their Head
quarters to their place of tour should be taken into account for this purpose and not
the distance from the Railway Station to the Railway station.
14.4.) CONVEYANCE ALLOWANCES:
In partial modification of rule 1607 (5) IREC-VOL II (2005 Edition) the grade pay
ranges for travel by public bus/ Auto Rickshaw /Scooter /Motor Cycle /Taxi /Own
car is revised as indicated below:-
Authority: Rly Bd’s Letter NO. F (E)1/98/AL-28/15 DTD. 01-12-2008
Grade Pay Entitlement
(1) (2)
(i) Officer drawing grade pay of Rs.10000 Actual fare by any type of public bus including
and above and those in pay scale of HAG air-condition bus OR At prescribed rates of
+ and above AC taxi when the journey is actually
performed by AC taxi OR At prescribed
rates for auto rickshaws for journeys by auto
rickshaws, own scooter , motor cycle . moped
etc.
(ii) Officer drawing grade pay of Rs.5400, Same as at (i) above with the exception that
Rs. 6600 ,Rs.7600, Rs. 8700 and Rs. journeys by AC taxi will not be permissible

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8900
(iii) Officers drawing grade pay of Rs. Same as at (ii) above
4600, Rs.4800
(iv) Officers drawing grade pay of Rs. Actual fare by any type of public bus other
2400 and above but less than Rs, 4200 than air conditioned bus OR At prescribed
rates for auto rickshaw for journeys by auto
rickshaw , own scooter / motor cycle/ moped
etc.
(v) Officers drawing grade pay below Rs. Actual fare by ordinary public bus only
2400 OR At prescribed rates for auto rickshaw for
journeys by auto rickshaw , own scooter
/motor cycle/ moped etc.
Mileage Allowance for road journeys shall be regulated at the following rates in places
where no specific rates have been prescribed either by the Director of the Transport of the
concerned state or of the neighbouring states.
For journeys performed in own car /taxi Rs. 16 per Km.
For journeys performed by Auto rickshaw, Rs. 8 per Km.
Own scooter etc.
The rate of mileage allowance for journeys on bicycle and foot on tour and transfer is
revised from 60 paisa to Rs. 1.20 per km.
14.5) TRANSPORTATION ALLOWANCE
Consequent upon the decision taken the Govt. on recommendations of the Sixth PC
regarding Transportation Allowance vide Ministry of Finance the Railway employees shall
be entitled to Transportation Allowance at the following rates:-
Employees Grade Pay of Rate of Transport
Allowance
per month
In 13 cities* Other Places
classified as
A- 1/A earlier
Grade pay of Rs.5400 & above Rs.3200+DA Rs.1600+DA
thereon thereon
(i) Grade pay of Rs.4200, Rs.4600 and Rs.4800 Rs.1600 +DA Rs.800+DA
(ii) Those drawing grade pay below Rs.4200 but thereon thereon
drawing pay in the pay band equal to Rs.7440
and above
Grade pay below 4200 and pay in the pay band Rs.600 +DA Rs.400+DA
below Rs. 7440 thereon thereon

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*Hyderabad (UA),Delhi(UA), Banglore (UA), Greater Mumbai(UA), Chennai


(UA),Kolkatta(UA), Ahemdabad(UA), Surat(UA), Nagpur (UA),Pune(UA), Jaipur(UA),
Lucknow(UA) and Kanpur(UA).
AUTHORITY:- Railway Bd’ Letter NO. PC-V/2008/A/TA/2 DTD 12-09-2008
14.6) COMPOSITE TRANSFER GRANT ON TRANSFER
I)In the case of transfer involving a change of station located at a distance of more than
20 km from each other the composite transfer grant shall be computed as below:-
Officers in the pay scale of One months basic pay as drawn in the pay scale
HAG+ and above
All other officers Equal to one months pay is drawn in the
Prescribed pay band + the applicable grade pay

ii) At present only one transfer grant is permitted if the transfer of husband and
wife takes place within six months of each other from the same place to the
same place w.e.f. the date of implementation of these orders. In cases if the
transfer takes place within six months but after 60 days of the transfer of
spouse 50 % of the transfer grant on transfer shall be allowed to the spouse
transferred later. No transfer grant shall be admissible to the spouse
transferred later in case both the transfer orders within 60 days. The existing
provisions shall continue to be precluding transfer grant in case of transfer at
own request or transfer other than in public interest shall continue to apply
unchanged in their case.
AUTHORITY: (Railway Board’s letter No. F (E) I /2008/AL-28/15 date 01-12-2008.
15.0) FOREIGN SERVICE CONTRIBUTION
Foreign Service means service in which a railway servant receives his substantive pay
with the sanction of Government
A) From a source other than the general revenue, or
B) From a company working as state Railway.
C) While a Railway servant is in Foreign Service, contribution towards the cost of his
Pension must be paid to general revenues on his behalf.
D) If the Foreign Service is in India, contributions must be paid on account of the cost
of leave salary also.
E) Contributions, due under clause (a) and (b) above, shall be paid by the concerned
Railway servant himself, unless the foreign employer consents to pay them or
otherwise. They shall not be payable during leave taken while in Foreign Service.
F)Contributions on account of leave salary must be paid only in the case of transfer is
in India. But in special circumstances Foreign Services out of India also the
foreign employer can pay the contributions towards leave salary.

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When a Railway servant is transferred to a foreign service, contribution towards


the cost of his pension or the cost of Government contribution payable to his credit in a
Provident Fund, as the case may be, and the cost of leave salary are to be paid by the
Foreign employer to the general revenue on his behalf and in the case of the foreign
employer does not pay such contribution, the Railway servant himself shall pay the
same.
Leave salary and pension contributions should be paid separately. Contributions may
be paid annually within 15 days from the end of each financial year or within 15 days of
the end of Foreign Service in case of Foreign Service completes before the end of
financial year. But contributions in respect of SRPF (contributory) will continue to be
paid monthly.
15.1) CALCULATION OF FOREIGN SERVICE
A) The rates of pension contribution have been designed to secure to the
Railway employee the pension that he would have earned by service under Govt., if
he had not been transferred to Foreign Service.
- [IREM VOL II PARA 2006 & 2023]
B) The rate of contribution for leave salary will be designed to secure the railway employee
leave salary on the scale and under the conditions applicable to him. In calculating
the rate of leave salary admissible the pay drawn in Foreign Service less, in the case
of Railway employees paying their own contributions such part of pay as may be
paid as contribution, will count as pay for the purpose of Rule 103(35) (FR 9(2)).
I) Leave Salary Contribution:
The rates of leave salary contribution will be @ 11% of pay of the employee drawn
in Foreign service. – [IREM VOL II PARA 2007]
II) Pension contribution:
Contribution for pensioner benefits will be on the percentage basis of the maximum
monthly pay of the post in officiating/substantive grade according to the length of
service of the employee at the time of proceeding on Foreign Service.
15.2) SIMPLIFICATION OF ADJUSTMENTS ON ACCOUNT OF ALLOCATION OF LEAVE
SALARY AND PENSION BETWEEN CENTRAL AND STATE GOVERNMENTS
In pursuant to the recommendations of the committee appointed in connection
with the above subject, it has been decided in consultation with the state Govt. to
dispense with the system of allocation of leave salary and pension between Central and
State Governments as specified below:
(a)Leave Salary:
The liability for leave salary will be borne in full by the Department from which the Govt.
Servant proceeds on leave, whether it be parent department or borrowing department
with whom he is on deputation.

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(b)Pension:
The liability for pension including gratuity will be borne in full by the Central/State Govt.
department to which the Govt. employee permanently belongs to at the time of retirement.
No recovery of proportionate pension will be made from Central/State Govt. under whom
he had served.
- (Railway Board Lr. No. F (E)II/87/IN3/1 Dt. 15-12-87)
15.3) PROCEDURE FOR PAYMENT OF CONTRIBUTION
A copy of the orders sanctioning a railway servant's transfer to foreign service must
always be communicated to the Accounts Officer by the authority by whom the transfer
is sanctioned. The railway servant himself should, without delay, communicate a copy
to the Accounts Officer and take his instructions as to the officer to whom he is to
account for the contribution; report to the latter officer the time and date of all transfers
of charge to which he is a party when proceeding on, while in and on return from,
foreign service and furnish from time to time particulars regarding his pay in foreign
service, leave taken by him, his postal address and any other information which that
Accounts Officer may require.
- [IREM VOL II PARA 2009]
15.4) INTEREST OR OVERDUE CONTRIBUTIONS
Contribution for leave salary or pension due in respect of a railway servant on foreign
service may be paid annually within 15 days from the end of each financial year or at the
end of the foreign service, if the deputation on foreign service expires before the end of a
financial year, and if the payment is not made within the said period, interest must be
paid to Government on the unpaid contribution, unless it is specifically remitted by the
President at the rate of two paise a day per Rs.100/- from the date of expiry of the period
of 15 days up to the date on which the contribution is finally paid. The Railway servant
or the foreign employer shall pay the interest according as the former or the latter pays
the contribution. The leave salary and pension contributions should be paid separately as
they are creditable to different heads of accounts.
- [IREM VOL II PARA 2012]
Note: No dues recoverable from Govt. on any account should be set apart against these
contributions.
15.5) TRAVELLING ALLOWANCE
a)The travelling allowance of a Railway servant both in respect of the journey on transfer
to Foreign Service and the journey on reversion there from to railway service will be
borne by the foreign employer.
b) Promotions
Government servants deputed on Foreign Service are entitled to get pro- form a
promotion while on Foreign Service and such promotion shall be regulated in the

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same manner in the principle of “Next below Rule”. The increased pay due to
promotion should be taken into account for FSC.
15.6) WITHHOLDING OF CONTRIBUTIONS
A railway servant in Foreign Service may not elect to withhold contributions and to
forfeit the right to count as duty in railway service the time spent in foreign employer.
The contribution paid on his behalf maintains his claim to pension or to pension and
leave salary as the case may be, in accordance with the rules of the service of which he is
a member. Neither he nor the foreign employer has any right of property in contribution
paid and no claim for refund can be entertained.
15.7) PAYMENT BY FOREIGN EMPLOYER OF PENSION OR GRATUITY
A Railway servant transferred to foreign service may not, without the sanction of
the President, accept a pension or gratuity from his foreign employer in respect of such
service.
15.8) LEAVE DURING FOREIGN SERVICE IN INDIA
A railway servant in foreign service in India may not be granted leave otherwise
than in accordance with the rules applicable to the service of which he is a member, and
may not take leave or receive leave salary from Govt. unless he actually quits duty and
goes on leave.
15.9) LEAVE DURING FOREIGN SERVICE OUT OF INDIA
His employer on such conditions may grant a Railway servant in Foreign Service
out of India leave as the employer may determine. In any individual case, the authority
sanctioning the transfer may determine before hand, in consultation with the employer,
the conditions on which the employer will grant leave. The employer will pay the leave
salary in respect of leave granted by the employer and leave will not be debited against
the railway servant's leave account.
A. In special circumstances, the authority sanctioning a transfer to foreign service out
of India may make an arrangement with the foreign employer, under which leave may be
granted to the Railway servant in accordance with the rules applicable to him as a
railway servant, if the foreign employer pay to Central Government leave contribution at
the rate prescribed under Rule 2007 (FR 116).
- [IREM VOL II PARA 2016 to17]
15.10) RECOVERY OF FOREIGN SERVICE CONTRIBUTION
Register of Railway servants in Foreign Service and whose contributions are
adjustable in the books of the Railway should be maintained in Establishment Section
to enable a check being exercised over the recovery of the contribution. This Register
should be posted after the sanction to the transfer is scrutinized and the Accounts
Officer should attest the entries. The register should be reviewed and watched for the
realisation of the FSC periodically. All orders received regarding a Railway servant on
foreign service and orders issued by the Accounts office for recovery of interest or if
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contributions in arrears and the cause of the contribution ceasing to be realised owing
either to transfer, death, dismissal or any cause should be recorded in this Register.
Records to be maintained in form No.A1221-Code for the Accounts department 1997
(Second Print).
15.11) DELAY IN RECOVERY OF FSC CHARGES
In several cases, sanctions containing the terms and conditions of transfer on
Foreign Service are being issued very late with the result that calculation and intimation
of the rates of Foreign Service contributions are delayed and penal interest become
payable. With a view to facilitating the recovery of Foreign Service contributions in time
and there by avoiding payment of penal interest etc. it should be ensured that in case of
transfer of Railway servant to Foreign Service all the terms and conditions of his
transfer are settled well in advance in consultation with foreign employer, the Accounts
Officer and Railway employee concerned before the employee is released to take up the
foreign service.
The rates per men sum at which Foreign Service contributions are payable shall be
included in the terms and conditions of transfer. The foreign employer or the Railway
servant should arrange to pay the contribution (FSC) within 15 days from the end of
month in which the Railway servant has drawn the pay on which it is based. This
clause should be incorporated in the terms of the Transfer. On relief of a Railway
servant to Foreign Service, a copy of the relief office order together with the terms of the
transfer should be forwarded to the Accounts Office.
The Accounts office should verify the correctness of the rate of Foreign Service and
make necessary entry in the FSC Register. The details of Foreign Service should be
entered in the service record of the Railway servant. Any alteration in rate of FSC due
to change in the rate of pay in the parent Department or Foreign Service should be
advised by the Executive to the Railway servant, foreign employer and to the Accounts
office. Particulars of leave availed by the Railway servant while in Foreign Service shall
be immediately advised to the Accounts officer. The Accounts office shall make
necessary entries and adjustment of leave salary in the Books of the Railway. The
Accounts office should watch the receipt of the Foreign Service contribution and on
receipt of the same shall make entries and adjust the same in the Books of the
Railways. The details should be recorded in the Register kept for this purpose. Delay in
receipt of FSC should be promptly brought to the notice of the Executive and Foreign
employer and Railway servant. Interest on outstanding Foreign Service contributions
should be claimed as per terms. A complete list of staff who were on Foreign service
should be furnished to Accounts Office by personnel Department to enable the Accounts
to watch and verify whether the FSC charges are realised correctly.

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16.0) PROCEDURE FOR TEST-CHECK:


The Test check should, apart from verification and thorough examination
of facts and figures embodied in various documents brought under test check, be
directed to an intelligent scrutiny to find out whether the clerk(s) understand their
duties and rules governing them and do the work allotted to them diligently and
whether there is any tendency to do the work casually. Test check should particularly
be conducted at least once in a month by SO and all officers. The test checks should not
be of routine nature rather they should focus on system improvement, procedural
lacuna and lapses. The underlying idea should be efficient disposal without any
violation of rules and procedures. The checks should also reflect the updated skills of
the officer.
- [PARA 803 A1]
16.1) RECORDING OF RESULTS OF TEST CHECK; _
The result of test check should be recorded systematically in a manuscript register in
the form given below:-
SR NO. Item of work Extent of Test Particulars of Name of the SO / Result of Whether the
test checked check vouchers elected SSO(A)who had test Test check discrepancy
prescribed for test check Checked the item in col.6 has
been pointed
out by the
supervisory
staff
1 2 3 4 5 6 7

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

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be put up for inspection by Officers has been prescribed in Appendix VIII of the State
Railway Code for the Accounts Departments-Part-I.
16.3) PERIODICITY OF SUBMISSION OF TEST CHECK REGISTER TO OFFICERS:
Every test checks register should be provided with an inspection sheet below the front page
indicating the month of test check, date on which put up and the date reviewed by the
Officer concerned. The test check registers of Section Officers and Senior Section Officers
should be put up to the Branch Officer on the 10th of each month indicating the test check
done on the work of clerk in the preceding month for review and orders, where necessary,
by the Branch Officers. A brief of important test checks shall be put up to FA&CAO through
MPR.
Extent of Test Checks required for different type of works.-
Description of the Extent of check by Gazetted Extent of check by SO(A)/SSO
Work Officer. (A)

Foreign Service Monthly review 5 items to be checked completely


Contributions every month, and monthly
register review.
Payment under 1 case per month 4 cases per month
W.C.Act
Pay sheets (i) Salary Bills of one G.O. and
one non-Gazetted staff per
month.
Supplementary Bills. Supplementary bills of 2 non- 10 Non-Gazetted staff per month.
Gazetted staff per month.
Scale check Register Entries in respect of one salary Entries in respect of two salary
bill once in 2 months. bills per month
Internal check of TA TA Bills of 2 Gazetted and TA TA Bills of 8 Gazetted and 8
Bills Bills of 4 non-Gazetted staff non-Gazetted staff
Leave application of One leave application every 2 leave applications per month
Gazetted Officer alternative month
Journal Voucher One JV every month 4 JVs every month.
Last Pay Certificate One LPC every month 2 LPCs every month
Service Cards of Few entries on 20% of cards at 2 Service Cards per month
Gazetted Officers the end each 5 year period
Posting in S.A.R Two cases per month Six cases per month

17.) STAFF BENEFIT FUND (SBF): SBF is established solely for the benefit and welfare of the
non gazetted employees t o help them for certain specific purpose This fund is

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primarily intended to relieve the railway employees from the distress caused to them due to
certain economic , educational and health problems . This fund is managed by a committee
at the headquarter of the railways and consists of:-
• CHAIRMAN -Chief Personal Officer
• OFFICIAL MEMBER -DY. GM & Chief Medical Officer
• SECERATERY -Welfare Officer
• MEMBERS -Six members elected from recognised unions.
-Four members elected by the Central staff council or the
G.M. (where Central staff council is not established)
Similarly, Regional sub- committees are formed in the division and workshop to administer
the fund.
(i)Resources:- The SBF is financed from:-
(1) Receipts from forfeited PF bonuses of non gazetted employees .
(2) All other receipts which used to be credited to the fund previously.
(3) Contribution from Railway revenue @ Rs.20 per year a per capita basis i.e. Rs.
20/- per head of non gazetted employees on strength preceding 31st March.
(4) Adhoc grant which is being given to each of the Railway by Railway Board
from time to time.
The distribution of the SBF grant is as under:-
(II) General activities:-
(a) Educational:- Assistance for the purpose of higher studies in engineering ,
scientific, medical, diploma and management courses , in the shape of
scholarship.
(b) Recreation other than sports
(c) Inter Railway cultural competition.
(d) Relief of distress, sickness etc.:- Relief to deaf dumb and blind children of
Railway employees.
(e) Miscellaneous.
(III) Sports activities
(IV) Scout activities
(V) Recreation facilities to officers and supervisory staff.
(VI) Indigenous system of medicine including Homeopathy .
AUTHORITY: Rly Bd’s letter no. E(W)97/FU-1/4 Dated 13-10-99.
A consolidated list of employees/ their wards approved by sub committee is forwarded to
zonal committee and after approval getting from zonal committee the same is circulated to
the divisions and on the basis of approve list the depot/personal branch will prepare
special pay sheets / pay orders and send it to Accounts office for passing. Immediate after
receipt of the same in the Accounts office after scrutiny the same is passed and co7 is

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prepared by charging the expenditure to the Headquarter and transfer the debit through
transfer certificate.
18.) CHILDREN EDUCATION ASSISTANCE:-
Consequent upon the Govt. on recommendations made by VI PC and in
suppression of all earlier orders on the subject of children education allowance and
reimbursement of tuition fees , the following instructions are revised:-
I. Children Education Allowance
(a) Children education allowance and reimbursement of tuition fees, which where
hither to payable separately will be merged and will henceforth be known as “Children
Education Allowance Scheme.”
(b) Under this scheme reimbursement can be availed by Govt. servant up to a
maximum of two children.
(c) Reimbursement as indicated above will be applicable for expenditure on the
education of school going children only i.e. for children from class nursery to twelve ,
including classes 11th and 12th held by Junior colleges or schools affiliated to universities
or Board of education.
(d) The reimbursement of children education allowance shall have no nexus with
the performance of the child in his class. In other words, even a child fails in a particular
class the reimbursement of children education allowance shall not be stopped.
(e) Reimbursement for the following items can be claimed under this scheme. :-
Tuition fee, Admission fee, Laboratory fee , Special charges for agriculture ,
Electronics , Music or any other subjects ,are charged for practical work under the
programme of work experience , fee paid for the use of any aid or appliance by the child ,
library fees, games /sports fees, and fee for extra curricular activities . This also includes
reimbursement for the purchase of one set of text books and note books, two sets of
uniforms and one set of school shoes. Which can be claimed for a child, in a year.
(f) The annual ceiling fixed for reimbursement of education allowance is Rs.
12000/- per child.
(g) Under this scheme reimbursement can be claimed once every quarter. The
amount that can be claimed in a quarter could be more than three thousand and in
another quarter less than three thousand subject to the annual ceiling of Rs.12000/- per
child being maintained.
(h) In case both the spouses are Govt. servant , only one of them can avail
reimbursement under this scheme.
(i) The above limit would be automatically raised by 25 % every time the DA on the
revised pay structure goes up by 50 %.

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II Hostel Subsidy :
Hostel subsidy will be reimbursed up to the maximum limit of Rs. 3000/ per
month per child subject to a maximum of two children. However, both hostel subsidy and
children education allowance can not be availed concurrently.
These orders shall be effected 01-09-2008.
Authority:- Railway Board Letter no. E(W) 2008 / ED-2/4 Dated 01-10- 2008
19.) PNM/PPM
19.1)Permanent Negotiation Machinery (PNM)- This machinery has been set up in
the Railway with a view to maintain an effective contact with labour and also to see
to resolve disputes and differences arises between the labour and the administration
in day to day working . The solution to various disputes and differences is sort to be
achieved by means of negotiations for which this machinery has been introduced.
The PNM works at three levels:-
(a) At divisional level, where the PNM meet the local administration once in two
month and discuss the problems of employees of the particulars establishment.
Many a problems are solved at such meeting and better understanding between the
workers and the administration. If some problems evades at this level, they are
referred at the next higher level. In division DRM/ADRM is the chairman of the
meeting. If any booklet regarding any PNM items related with establishment claims
of the employees is received, immediate reply of such items is to be given and the
details of payment if passed by Accounts may be given like CO7 NO. amount passed
etc.
(b)At Zonal level, where the workers representatives meet the officers of the
headquarters including the General Manager once in three months and all
outstanding problems are discussed. The problems which can not be settled at this
level are brought before the still higher level.
(c) At Railway Board level , where all problems which could not be solved
satisfactory at Railway’s level , are raised in the half yearly meeting between the
federation and the Railway Board.
If some differences and disagreements still remain unsettled , these are
referred to an adhoc Railway Tribunal with a neutral Chairman and having
representatives both of the Railway Board and the Federation.
19.2) Payment pending meeting (PPM):- DPO is the chairman of PPM at division
level, whereas ADEN is the chairman at sub-division level. This meeting is to be held
on monthly basis. In such meeting authorized representatives of union, one ADFM
from Accounts side and DPO will sit together and the problems of employees’ claims
which are included in the agenda and for which one booklet is prepared and
circulated well in advance to all concern is discussed and settled.

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The items which are included for the discussion in the PPM is discussed with the
union representatives and one SR.SO/SO from Account side will participate in such
meeting to settle down the items. Those items which are not settled during the sub –
divisional PPM are referred to divisional PPM for discussion and for its disposal.
20.) Productivity Linked Bonus (PLB):- AIRF AND NFIR accepts the scheme of PLB in
view of their demand for payment under the payment of bonus act 1965.
The productivity shall be determined solely on the basis of Revenue Traffic Tonne
Kilometer achieved each year as derived from the relevant audited statement of
statistics of Indian Railways. The actual performance alone shall be the basis of
productivity and the productivity linked bonus.
PLB for each financial year covered by this scheme shall be paid by 31st October of
the succeeding financial year. The grant of PLB intended to provide substantial
motivation towards achieving higher productivity by way of increase the output by
the employees and improve quality of service.
Railway board in consultation with the federation members the days of PLB and the
monthly ceiling limit decides and on the basis of such orders the personal branch
prepares bonus cards for each employee and pay sheets of the bonus and the same
is received in the Accounts office wherein it is passed and such bonus cards are
kept for post check purpose. While post checking if any over payment is detected the
personal branch is intimated for their recovery under advice to Accounts office.
21.) Maintenance of Service Records and Salary Audit Registers for Gazetted
officers.:
When a gazetted officer arrived on transfer from other accounting unit their service
records to be received as early as possible to enable this office to maintain their
Salary audit register accordingly. For the purpose immediate after receipt of audited
LPC from transferred accounting unit the letter is to be written to such accounting
unit and matter is to be personally chased by supervisor level. Similarly, the SRs of
the officers who have been transferred to other accounting unit their SR after
completing all details like leave details, increment sheet etc to be transferred at the
earliest to the accounting unit where he has been transferred.
Time Limit: 15 days for inward and outward SRs.
In computerization environment the SAR is now computerized and passing the
regular payment of officers the hard copy is being extracted.
22.) AFRES (PROCEDURE TO BE FOLLOWED IN ESTABLISHEMENT SECTION)
Apart from checks mentioned in previous pages the process of taking CO6 no. and
making CO7 for passing the bills through AFRES, involve the following modus operandi :-
i). Password is allotted to each bill clerk wherein he will open AFRES with his own
password.

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ii) After Selecting Internal Check menu he will open Transaction Menu, where following
options are available: -
• Salary Bills Register and Posting.
• Supplementary Bills Register and posting
• Non- Salary Bills register and posting
• Bill Return
• Co7 Posting
• Co7 Confirmation /cancellation
• Cash Outward Transaction
iii) As per requirements, he will select one of the options.
iv) Reconcile the figure of Pay bill concerned and as given in menu if all figure match
then ‘AU6 ‘No. is selected.
v) For preparation of Co7, the bill-passing menu is opened and AU6 already checked,
selected for proposals of Co7.
vi) Co7 No. will be noted down, automatically selected by system, on pay sheet
concerned and can be printed in “Report Menu.”
Vii) Bill clerk and SSO (ESTT.) check these bills and after the checks the same will be
put up to Accounts Officer for signature.
viii) The bills should be handed over to Books Section after confirmation of Co7, for
preparation of cheques / Electronic Transfer.
It may be noted that in case of any irregularity it should be traced in ‘Audit Menu”.
In case of return for Executive office “Bill Return Menu” is to be operated. There are few
transactions like Misc. Pay Orders, Unpaid vouchers, Court Attachment Pay Order etc.,
which are not generated through ‘PRIME”. In addition to above certain books adjustment are
required to be carried out. Such adjustments are done by preparing ATC/ATD and RJV by
selecting ‘Cash Outward Transaction” and by entering detailed head of account to be debited
or credited with amount. At the end of the month AU6 Register for the month is printed
selecting ‘AU6 REGISTER MENU” For audit and record purpose.
Note:The detailed procedure of working on AFRES is annexed as AFRES USER MANUAL

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Sr.DFM’s Office, West Central Railway, Bhopal AFRES USER MANUAL

1.0) Introduction

The Advanced Finance and Railway Earning & Expenditure System


or AFRES for short, is an integrated system that covers the working of the
accounts office at the zone level and at the division level. System handles
accountal of payments made by the Railways and accounts of railway earnings
received by Railways apart from regular finance and accounts Menus. A
number of associated activities are also covered.
AFRES is organized into various interconnected but independent
modules, each module handling a category of activities. Internal Check is one
of the modules of AFRES using which the CO6 registers, CO7 registers,
contract bill registers, Cheque and bank statements and CO7 forms are
maintained and bills are processed. It is very important to know that
computerization has brought tremendous changes in our working apart from
ease of operative correctness of data. MIS is also available for decision-making.
Similarly, it has brought number of changes in our working pattern. Number of
checks have become redundant as system as system takes care of them and at
the same time new areas cropped up which require serious checks and …..i.e
running of trial balances.
2.0) The Menu System

2.1) Transaction
• Salary Bills
___________________________________________________________________________________

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Sr.DFM Office, West Central Railway, Bhopal AFRES USER Manual

• Salary Bill Registration


• Supplementary Bill Registration
• Other Bills Registration (Salary)
• Salary Bill Edit (Audit Correction)
• Salary Bill Passing
• Minus CO6
• Stop Payment
• CO7 Posting
• CO7 Confirmation
• CO7 Cancellation
• Provisional Bill
• Bill Regularization
• Cash Outward Transactions
• JV Entry
• Edit Cash Certificate
3.0) Objective of this document
The purpose of this user manual is to
 To explain / describe the various options available in the
module
 To provide guidance on the use of options provided in the
main menu
 To give instructions on how to enter data in the various
screens.
4.0) Logging in to AFRES
Once user clicks on the AFRES icon, user will be asked for
User Id and Password. Enter the Id and password given to user to access
AFRES. At this point, the computer checks the permission given to User Id. If
user is found to be an authorized user, user will see the Main Menu and
system will be ready for user to work on.
5.1) Menu: Bill Return
This option is used to record the return of a bill after the bill
has obtained a CO6 registration. The operator’s Id returning the bill and
reasons for return is also recorded.

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FORM LAY OUT :WINDOW FOR BILL RETURN

The details regarding kind of data accepted by the AFRES System and other
details are given below.
Prompt Description
CO6 Number Enter valid CO6 Number to get the details
CO6 Date This is the date on which the CO6 number was generated.
Bill Amount Bill Amount is displayed.
Party Name This is the name of the party who has raised the bill.
Bill Number This is the bill number.
Bill Date This is the date on which the party raised the bill.
Return Date Enter the date on which user want to return the bill.
Dealing Clerk Enter or select from list the clerk who is dealing with the bill return.
Return Reasons Reasons for returning CO6, has to be selected from the available reason
codes.
5.2) Menu: CO7 Posting
This option is used to post CO7 for a given Bill Section. This option enables user
to generate CO7 number for up to 12 CO6s. If the cash authorization is not
available for the year and & month or if the balance does not exist for the bill
section, user will not be allowed to select the CO6.Thus, the CO6 (Bill) must
have been passed using Bill Passing (Misc.),Bill Passing (Contractor),Bill Passing
(Traffic) or salary Bill passing using appropriate options in the transaction
menu.

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FORM LAY OUT WINDOW FOR CO7 POSTING:

The details regarding kind of data accepted by the AFRES


System and other details are given below:
Prompt Description
Section Enter or select the section, which contains the CO6 numbers user
want.
CO7 Number The CO7 number will be generated after CO6 numbers selected &
pressed Enter.
CO7 Date System date will appear.
CO6 Details CO6 number details for the chosen section are displayed in this
grid.
CO6 Number This is the CO6 Number of the bill.
CO6 Date This is the date on which the CO6 was generated.
Net Amount This is the net amount of the bill.
Party Name This is the name of the party who has raised the bill.
Select Click here to select the CO6 for which user want to post O7.
Balance Balance is displayed.
5.3) Menu:-CO7 Confirmation
This option is used to confirm a CO7 for a given Bill Section. In this
option user can look at those CO7 numbers of a specified bill section that are
posted but not confirmed yet. Once user confirms the CO7 numbers, data in the
Sanctions, Contracts and Cash Authorization is updated. No changes can be
made after the CO7 is confirmed. Hence this task should be performed after the

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Accounts Officer has given the approval. CO7 Posting must be complete and
cheque should not be generated for the CO6 numbers selected.
FORM LAY OUT :WINDOW FOR CO7 CONFIRMATION:

The details regarding kind of data accepted by the AFRES System and other
details are given below::-
Prompt Description
Section Enter or select the section, which contains the CO7
numbers user want to confirm.
Confirm CO7’s This grid will display the CO7 details of the specified
section.
CO7 Number CO7 Number is displayed.
CO7 Date This is the date on which the CO7 was generated.
CO7 Amount CO7 amount is displayed.
Confirm Click against the CO7 user want to confirm the CO7.
CO6 Details Like CO6
Number, Date, party name These are details of the CO6 numbers of the CO7
Passed, Deducted & Net
Amount, Pay Mode, Bank
Code
5.4) Menu: Provisional Bill Passing
This option is used to pass a bill on a provisional basis. This means
user can
pass a CO6 with objection raised and later regularize the bill (using the Bill
Regularization option).

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FORM LAY OUT : WINDOW FOR PROVISIONAL BILL PASSING:-

The details regarding kind of data accepted by the AFRES System and other details
are given below:-
Prompt Description
CO6 Number Enter valid CO6 Number to get the details, if the CO6 is already
passed or cheque has been prepassed user will not be able to re-
pass the bill.
CO6 Date, Bill Type,
id, Section,
Description, Party These are details of the chosen CO6 for preparing CO7.
Code, Bill Amount
Passed Amount Enter the amount being passed on provisional basis.
Deducted Amount This is the amount deducted from the bill.
Net Amount This is the net amount.
Pay Mode Enter or select from list the mode of payment user want to make.
Bank Code If the pay mode is cheque, enter the bank code.
Clerk Enter or select from list the Id and name of the clerk passing the
bill.
X-Code Enter or select from list the code of the expenditure head to
which the bill will be attached.
Allocation Enter the Allocation
Disallow Amount Enter what amount from the bill user do not want to pay.
Disallow Reason Enter or select from list the reason for the disallowed amount.
Objection Type Enter or select from list the type of objection user want to raise

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against the bill.


Objection Amount Enter the amount for which user have raised the objection.
5.5) Menu:-Other Bill Registration and Passing
This option is used to register adhoc bills, which do not fall into any of the
categories mentioned earlier. The internal check has to be done manually for
these bills, since no reference data is available. User may use this option to
register the bill and record the recoveries to be imposed on the bill. The status is
cleared as 'passed', so that the bill can be posted to CO7.
FORM LAYOUT WINDOW FOR OTHER BILL REGISTRATION & PASSING

The details regarding kind of data accepted by the AFRES System and other
details are given below:
Prompt Description
CO6 Number CO6 Number must be Left blank, if user are registering a bill, to edit
or view an already registered CO6, please enter to get the details, if
the cheque is already written for the CO6 No. details of the CO6 will
be displayed.
CO6 Date Enter CO6 Date.It Can not be greater than system date.
Section Enter or select from list the section to which the bill is accounted.
Party Name Enter the name of the party who has raised the bill.
Bill ID Enter Party Bill Number. If bill for the bill type is already entered,
respective CO6 Details are displayed.
Bill Date Enter the date on which the bill was raised.

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Bill Description This is the Party Name or contractor name for the bill type alongwith
the bill description and bill amount.
SPU Enter Spending unit, must be valid.
X-Code Enter or select from list the code of the expenditure head to which
the bill will be attached.
Allocation Allocation is displayed.
Bill Amount Enter the bill amount
Reason for Enter or select from list the reson for not passing a part of the
Disallowance amount.
Disallowance Enter the amount user do not want to pay.
Amount

Clerk ID Enter or select from list the ID / name of the clerk who is passing the
bill.
Pay Mode Enter Pay Mode or User can select it from the List of Values. If Pay
Mode is 'Bank', Bank Code will be enabled; otherwise Bank code will
be disabled.
Bank Code Enter Bank Code, it must be a valid and exist in party master
Recovery Code Enter or select from list the recovery code . The description is
displayed.
Recovery Enter the amount user are recovering from the bill amount.
Amount
X-Code Enter or select from list the code of the expenditure head to which
the bill will be attached.
Allocation By default, the respective Allocation for each bill type will be
displayed. User will be allowed to modify allocation & allocation
must be valid for Spending Unit. User can select it from the List of
Values provided.
Db/Cr Indicate whether the amount will be credited or debited.
Amount Enter the allocation amount
5.6) Menu: -Salary Bill Registration
This option is used to register salary bills. The pay bill will be generated
using the payroll system 'PRIME'. Using this option user can register the
already generated salary bill. A CO6 number will be generated for every Pay Bill
Id.

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FORM LAY OUT: WINDOW FOR SALARY BILL REGISTRATION:

The details regarding kind of data accepted by the AFRES System and other
details are given below:.
Prompt Description
CO6 Number CO6 Number must be Left blank, if user are entering a
new bill, Otherwise enter valid CO6 Number, to get the
details, if the cheque is already written for the CO6
No. details of the CO6 will be displayed.
CO6 Date Enter CO6 Date. Cannot be greater than system date.
Pay Bill ID Enter or select from list the Id of the pay bill.
Date, Bill Unit, AU, Pay Category, These are the details of the pay bill for the specified
Passed, Recovery, net &cash Pay Bill ID.
Amount, Employee Cheque
Amount, NRB Cheque
Amount
Clerk ID Enter or select from list the Id / name of the clerk
registering the salary bill.
Remarks Enter remarks, if any.
Earning / Recovery Details This grid displays the break-up of the earnings and
recoveries of the salary bill.
Employee Details This grid will display the employee code, designation
code of the employee, earning and recovery amount.

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5.7) Menu:- Other Bill Registration (Employee)


This option is used to register employee related bills such as cash award,
miscellaneous payment, etc. Pay bills are not registered here.
FORM LAY OUT : window for Other Bill Registration (Employee)

The details regarding kind of data accepted by the AFRES System and other
details are given below:
Prompt Description
CO6 CO6 Number must be Left blank, if user are entering a new bill,
Number Otherwise enter valid CO6 Number, to get the details, if the cheque is
already written for the CO6 No. details of the CO6 will be displayed.
CO6 Date This is the date on which the CO6 is being generated.
Section Enter or select from list the section to which the bill will be
accounted.
Employee Enter or select from list the code / name of the employee who has
Code submitted the bill.
Bill Id Enter the bill number
Bill Date Enter the date of billing
Bill Desc Enter a short description of the bill.
Bill Enter the bill amount.
Amount
X-Code Enter the code of the expenditure head to which the bill amount will
be accounted.
Clerk Id Enter the Id / name of the clerk who is registering the bill.

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SPU Enter or select from list the spending unit of the item billed for.
Pay Mode Enter Pay Mode or user can select it from the List of Values. If the Pay
Mode is 'Cash', Bank Code will be disabled.
Bank Enter or select from list the bank code on which the payment cheque
Code will be drawn.

5.8) Menu:-Stop Payment (Salary):


This option is used to stop the payment of salary to an employee. After
registering the pay bill in CO6 and Posting it to CO7, for some valid reason if it is
decided not to release the salary of an employee this option is used. When this
option is exercised, the net pay of the employee is posted to deposit and is
removed from the salary CO6.
FORM LAY OUT window for stop Payment(Salary):

The details regarding kind of data accepted by the AFRES System and other
details are given below:
Prompt Description
CO6 Number Enter valid CO6 Number.
Bill Unit, Month, Year &C07
Number These are details of the pay bill
Employee Details:
Employee Code, Pay Mode, Bank These are salary payment details of the employees
Code, Name, Net Pay, Cheque
Number
Stop Payment To select “stop payment” for an employee, click on the
check box provided against the employee detail.

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5.9) Menu:-Employee Bank Payment


This option is used to make bank payments for the employees’ salary.
FORM LAY OUT window for Employee Bank Payment:

The details regarding kind of data accepted by the AFRES System and other details are
given below:.
Prompt Description
CO6 Number Enter the CO6 number for which user want to make the
employee bank payment.
Bill Unit, AU Pay Category,
Passed, Deducted ,Net These are salary bill details
Amount &Cash Amount
Employee Chq. Amt. NRB
Chq. Amt. Clerk ID CO6 NO
Pay Mode This is the mode of payment.
Bank Code Enter the code of the bank to which user want to make the
payment.
Party Name Party Name is displayed.

Net Amount Net Amount is displayed.


Cheque Number This is the cheque number for the payment to the bank.
Select This button is by default set to club the cheque amount. If
user want to write more than one cheque for a party then
unselected the button and proceed.

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5.10) Menu :-Establishment Bill Registration


This option is used to register salary / pay bills.
FORM LAY OUT window for Establishment Bill Registration:

The details regarding kind of data accepted by the AFRES System and other
details are given below:.
Prompt Description
CO6 Number This is the CO6 number of the bill.
CO6 Date Enter the date on which user are registering
the bill
Pay Bill ID Enter the Pay Bill ID, must be valid.
Bill Unit, AU, Pay Category,
Passed, Recovery ,Net ,Cash These are salary bill details
Amount Employee Chq. Amt.,
NRB Chq. Amt, RB Amount
Clerk ID Enter Clerk ID, must be valid.
Remarks If user have any remarks to make, enter them
here.

5.11) Menu: Supplementary Bill Registration-


This option is used to register pay / salary bills of the employees.

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FORM LAY OUT window for Supplementary Bill Registration:

The details regarding kind of data accepted by the AFRES System and other
details are given below:.
Prompt Description

CO6 Number This is the CO6 number of the bill.


CO6 Date Enter the date on which user are registering the bill.
Pay Bill ID Enter the Pay Bill ID, must be valid.
Pay Bill Date This is the date of the specified pay bill Id.
Bill Unit, AU, Pay
Category, Passed,
Deducted, Net Cash These are pay bill details of the specified pay bill ID
Amount, Employee Chq.
Amt. NRB Chq. Amt.
Clerk ID
Remarks Enter the Remarks
Clerk ID Enter Clerk ID, must be valid.
Employee Code, Name ,
Earning / Deduction These are details of the employee pay bill.
Desig. Code, Amount
Allocation
5.12) Menu :Edit Earning Deduction Amounts:-
This form allows changing an employee's earning/deduction amounts as a
result of bill audit. These changes are updated back o payroll after CO7
passing.

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FORM LAY OUT window for edit earning deduction amounts:

The details regarding kind of data accepted by the AFRES System and other
details are given below:-
Prompt Description
Pay Bill ID Enter the pay Bill ID in which user want to edit
earning/deduction.
Pay Bill Date, Pay
Category,CO6 Number ,AU, These are pay bill details of the specified pay bill
Passed ,Deducted ,Net, RB ID
Chq., NRB Chq. Employee Chq,
Cash Amount
Employee Number, Name,
Designation Pay Mode, Gross
Amount, NRB, RB Recovery Net These are employee and pay details
Pay
Earning Deduction Earning Deduction is displayed
Pay Bill Amount This is the deduction amount as in the pay.
Allocation Enter Allocation
Audit Amount Enter the new deduction amount

5.13) Establishment Bill Passing:


Audited bills are passed using this screen. Accounting entries are generated
based on allocation for earning and recovery codes.

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FORM LAY OUT window for Establishment Bill Passing:

The details regarding kind of data accepted by the AFRES System and other
details are given below:
Prompt Description
CO6 Number Enter the CO6 number
CO6 Details, Pay The CO6 and Pay details will be displayed. Click Save
Details to pass the bill.
6.0) Reports:
This option enables user to generate various reports and registers. User
can generate a report, and
a. View the output on the screen
b. Print the reports using print option. The Windows print
dialog will appear on the screen. User can specify the printer
and select the page numbers to be printed.
6.1) Reports Listing:
Report Description Report Name
CO6 Register AFICR01
Bill Return Register AFICR02
Provisional Bill Register AFICR03
CO7 Register AFICR04
CO7 AFICR05

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Pending Bills Report AFICR20


List of Bills Pending AFICR54
Weekly Progress Report AFICR06
Bill Return Register AFICR02
Provisional Bill Register AFICR03
CO7 Printing AFICR05
Bill Return Advice AFICR53
Bill Enfacement AFICR101
List of CO7s (Cash Outgo) AFPFR16
Allocation Details for CO7s AFICR55
Cheques & Bills Allocation Details AFICR56
Bank Statements - Bank Summary Statement (SBI) AFICR111

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Sr.DFM'S Office, West Central Railway, Bhopal Process Manual

ACTIVITY/ RESPONSIBILITY MAPPING OF ESTABLISHMENT SECTION

Supervisor AA
S. No. Activity Detail Dept.
Code Code
Scrutiny & Passing of

Gazetted Officers SO A.A.

Commercial, Loco Running SO A.A.

SO A.A.

ENGG.(ADEN HD,ET), RPF SO A.A.


(A) Regular P/sheets ,Special paysheets and Pay orders, affixation of pay,
composite transfer grant and other arrear claims like HRA, CCA, NDA TA, S&T, C&W Dept SO A.A.
1 P.L.B paysheets etc.Pay orders as per honorable court's rulings, Work man's
OPTG Dept., Cash Award
compensation Act & so on . SO A.A.
Pay Orders
Medical, Accounts, Loco
SO A.A.
Staff (L.I. etc.)
DRM Building Staff, AMM/
ELS/ ET, RRB, ADEN/ SFY SO A.A.
and SVPI
ADEN/BPL/BINA, CLASS
SO A.A.
III ENGG. STAFF.

(B) Pay Orders of Staff Benefit Fund Pay Orders. All departments SO A.A.

SCRUTINY OF VOUCHER

(A) All TA journal vouchers received for pre check for inclusion in regular
SO A.A.
2 paysheets for those employee whose basic pay is beyond
Departments as Specified in
Point 1(A)
(B) Post- check of P.L.B. cards SO A.A.

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Sr.DFM'S Office, West Central Railway, Bhopal Process Manual

Supervisor AA
S. No. Activity Detail Dept.
Code Code
CHECKING AND VETTING OF CLAIMS

(A) All establishment proposals of gazetted and non-gazetted staff for correct
3 fixation of pay and other claims Departments as Specified in
S.O. A.A.
(B) Vetting of Last Pay certificate (LPC) of gazetted and non gazetted staff Point 1(A)
who have been transferred to other accounting unit.

(A) Obtain Service record of officers who have arrived on transfer from other
4 A.A.
accounting unit.
All departments S.O.
(B)Verification and Recording of vetted LPC's of gazetted and non gazetted
A.A.
staffs who have arrived on transfer from other accounting unit.

To Forward :

(A) Service record of gazetted officer who have been transferred to other
5 SO A.A.
accounting unit.

(B) All monthly,quarterly,half yearly ,and other MIS & information Sought
SO
through Right to information

PREPARATION OF JV

(A) Journal voucher( JV ) for rectification of Wrong allocations, if any A.A.


Departments as Specified in
6 (B) ATC/ATD and JV for adjustment of claims passed for other accounting Point 1(A)
SO A.A.
unit/Rly or credit/debit amount received from other accounting units/Rly.

(C) ATD/ATC related to cash award All departments A.A.

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Supervisor AA
S. No. Activity Detail Dept.
Code Code
MAINTENANCE

(A) Foreign service contribution register (FSC) for record of FSC charges for
SO A.A.
those employees who have gone on deputation.
All departments

7 (B) Salary Audit Register of gazetted officers. SO A.A.

Departments as Specified in
(C) D.P.register and special paysheet/pay order passing register. SO A.A.
Point 1(A)

(D) Scale check register for all class III and clas IV employees and posting and
All departments SO A.A.
review of scale check register

MISCELLENOUS WORK:-
(A) Running of Audit Trail
8 Related with Estt. Section SO
(B) Dealing with PNM/PPM Items required by division & HQ

( C ) Submission of all Returns .


9 Pay Commision Implemention and Fixation All Departments SO A.A.

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Estt. section Chapter 8 Rev : 00 page 5 Of 3 Approved By__________


Sr.DFM'S Office, West Central Railway , Bhopal Process Manual

ESTABLISHMENT SECTION STAFF SHEET

S.No. Name Designation


1 SMT. REETA MISHRA S.S.O-I

2 A.K.PANDEY S.S.O.-II

3 W.H. Mahiskar A.A.

4 R.C.YADAV A.A.

5 Chandra Shekhar Saraswat A.A.

6 Awadesh Mishra A.A.

7 Badri PRASAD KORI A.A.

8 S.N.PALSULE A.A.

9 S P Gaur A.A.

10 Mahesh Rajput A.A.

11 Balbir Singh A.A.

12 Mrs. Renu Shrivastva A.A.

Estt. Section Chapter 9 Rev:00 01.01.09 page 1 of 1 Approved By_____________


Sr.DFM'S Office, West Central Railway , Bhopal Process Manual

Estt. Section Chapter 9 Rev:00 01.01.09 page 1 of 1 Approved By_____________


Document No: PF
January 01, 2009

PROVIDENT FUND SECTION

PROCESS MANUAL

Office of Sr. DIVISIONAL FINANCE MANAGER


WEST CENTRAL RAILWAY, BHOPAL

Telefax: : 0755-2457138
Railway Phone : 5056
E-mail : soestt@rediffmail.com

Compiled By CO-ordinated by Reviewed by Reviewed by Approved by

(P.K.JAIN) (D.N.DWIVEDI) (RAJIV SHRIVASTVA) ( AJAY SHARMA) (HIRA BALLABH)


SSO/PF SSO/ISO ADFM ADFM SR.DFM
CONTENTS

Revision. No/Date No. of


Chapter NO. Title
00 01 02 Pages

1 Abbreviations 01/01/09 01

2 Introduction 01/01/09 01

3 Source of references 01/01/09 01

4 Scope of work 01/01/09 02

5 Sectional Procedure 01/01/09 10

6 NPS –An Overview 01/01/09 04

7 AFRES User Manual 01/01/09 18

Activity/ Responsibility
8 01/01/09 01
Mapping Chart

9 Measurable Parameter 01/01/09 01

10 Calendar of Returns 01/01/09 01

11 Monthly Reporting Sheet 01/01/09 01

12 Responsibility Code Staff Sheet 01/01/09 01

13 List of Records 01/01/09 01

14 Functional Chart 01/01/09 01

15 PF Section Flow Chart 01/01/09 03

16 Changes to Process Manual 01/01/09 01

PF Section: 1 Page 1 of 1. Rev:00 01.01.09 Approved by __________________


SR.DFM’s Office, West Central Railway, Bhopal Process Manual

ABBREVIATIONS
Sr
No. Term Expansion
1. AA Account Assistant
2. ADFM Assistant Divisional Finance Manager
3. AFRES Advance Finance Railway Earning and Expenditure System
4. ATC Advice of Transfer Credit
5. ATD Advice of Transfer Debit
6. CO7 Cash Order No 7
7. CO6 Cash Order No.6
8. D.L.I. Death Linked Insurance Scheme
9. F.A.&.C.A.O Financial Advisor & Chief Accounts Officer
10. GB General Books
11. IVRS Interactive Voice Response System
12. JV Journal Voucher.
13. MCR Magnetic Card Reader
14. NPS New Pension Scheme
15. NCSRPF Non Contributory State Railway Provident Fund
16. NSDL National Security Depositories Limited
17. PF Provident Fund
18. PNM Permanent Negotiation Machinery
19. PPM Pending Payment Meeting
20. QF Quality Format
21. JV Journal Voucher
22. SR.DFM Senior Divisional Finance Manager
23. SSO Senior Section Officer
24. G.B. General Books
25. M.C.R. Monthly Cash Receipt

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Sr.DFM’s Office , West Central Railway, Bhopal Process Manual

Introduction
Accounts office being custodian of Provident Fund of the Railway Employees is
responsible for proper and safe custody of it. The major function of Provident Fund (PF)
section is to ensure proper maintenance of the PF account of all the employees. In this
regard proper recovery towards PF from the monthly wage bills, special pay sheets,
arrear pay sheets proper accountal of credit balance, debiting th