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OFFICE MANUAL OF THE PRINCIPAL DIRECTOR OF AUDIT
GOVERNMENT OF INDIA OFFICE MANUAL OF THE PRINCIPAL DIRECTOR OF AUDIT CENTRAL RAILWAY MUMBAI C.S.T. (For Official use in the I.A. & A.D. only) PREFACE 1. This Office Manual is in revision/supersession of the existing Office Manual published in December, 1977. The revision has been necessitated by changes in the organisational set up, audit procedures as a result of computerisation of accountal of Railway transactions and issue of a large number of office orders on local procedure laying down instructions for audit and improved working of the office since the publication of the earlier Manual. 2. This Manual is meant for guidance of the staff in accordance with paragraph 79 of the Railway Audit Manual (Fourth Edition). Its contents must be considered as subject and subsidiary to the rules in Manual of Standing Orders (Administration and Audit) and Railway Audit Manual issued by the Comptroller and Auditor General of India. The Manual should not be quoted as authority in any correspondence outside the office. 3. Any error or omission found in this Manual should be reported promptly to the COR Section of this office. Suggestions for the improvement of the Manual is welcome. Mumbai CST April, . Mala Sinha Principal Director of Audit LIST OF ABBREVIATIONS USED IN THIS MANUAL CAG The Comptroller and Auditor General of India ADAI(R) The Additional Deputy Comptroller and Auditor General of India PDA The Principal .Director of Audit DD The Deputy Director ADA The Assistant Director of Audit AuO The Audit Officer DAuO Divisional Audit Officer BO Branch Officer GO Gazetted Officer AAuO The Asst.Audit Officer SO(A) The Section Officer(Audit) Sr.Ar. The Senior Auditor FA&CAO The Financial Advisor and Chief Accounts Officer Admn. Administration Section COR Coordination Section ECPA Efficiency-cum-Performance Audit Section SOGE Section Officers Grade Examination MSO(I) The Comptroller and Auditor General of India's Manual of standing orders(Administration)Vol.I MSO(II) MSO(Tech)I - Do- Vol.II The Comptroller and Auditor General of India's Manual of standing orders(Technical) Vol.I MSO(Tech)II The Comptroller and Auditor General of India's Manual of standing order(Technical) Vol.II MOI The Memorandum of Instructions regarding the extent of Audit(Railway Audit) issued by the ADAI (Rlys) (Second Edition) -1983. GFR General Financial Rules RAM Railway Audit Manual(Fourth Edition) December;81 RI Indian Railway code for Establishment section R.II Vol.I. (Revised Edition) Indian Railway code for Establishment section Vol.II. (Revised Edition) FI Indian Railway Financial Code Vol.I FII Indian Railway Financial Code Vol.II AI Indian Railway Code for the Accounts Department Vol.I(Revised) AII Indian Railway code for the Accounts Department Vol.II E Indian Railway Code for the Engineering Department(Revised) SI,SII Indian Railway code for the Stores Department (Revised) (Vol.I & Vol.II) W Indian Railway Code for the Mechanical Department(Revised) EDPM Electronic Data Processing Manager CONTENTS CHAPTER 1 CONSTITUTION OF THE OFFICE Pr.Director of Audit as Head of the Department Organisation Paragraph 1 2 Composition of Gazetted Staff 3 Gazetted Establishment Non-Gazetted Establishment 4 5 CHAPTER 2 DEPARTMENTAL REGULATIONS Powers and Responsibilities of Pr.Director of Audit Transfer of Charge Powers of Deputy Directors/Audit Officers(Admn) Fixing Head Quarters and posting of Gazetted Officers 6 7 8 9 Operation of Posts of Audit Officers in lieu of IA&AS posts 10 Appointment of Asstt.Directors of Audit/ Audit Officers 11 Appointment of an Audit Officer to hold charge as Dy.Director Distribution of work among Gazetted Officers Handing over notes of other Gazetted Officers and staff Tour Programme 12 13 14 15 Returns and sanctions regarding Property Payment of Pay and Allowances to Gazetted Officers Appointment of Non-Gazetted staff Oath of Allegiance 16 17 18 19 Conditions of service Promotion of Asst.Audit Officer as Audit Officer Transfers from one office to another 20 21 22 Deputation 23 Confidential Reports 24 Permission to join officially sponsored organisation Permission to join Educational Institution Representations to Higher Authorities 25 26 27 Leave to IA & AS Officers Maintenance of secrecy in official matters Treatment of confidential papers Treatment of secret papers 28 29 30 31 Treatment of Top-secret papers Movement of classified documents within the office 32 33 Movement of papers between two Departments Custody of classified papers in an Officer's Room 34 35 Handing over of classified documents on vacation of the post Supervision of Security Measures Gradation list 36 37 38 CHAPTER III GENERAL OFFICE PROCEDURE Office Hours and attendance Attendance Late Attendance 39 40 41 Absence from office Cleanliness of office Holidays Casual leave 42 43 44 45 Compensatory leave Special Casual Leave Restricted Holidays Passes & Privilege Ticket orders to Railway Audit Staff 46 47 48 49 Passes and Privilege Ticket orders to Non-railway deputationists 50 Travelling Allowance 51 Medical Attendance Staff Associations Inspection by the Director of Inspection Personal copies of codes/Manuals to Gazetted officers/Section Officers 52 53 54 55 Staff Welfare Inward dak Registration of Inward letters Disposal of letters 56 57 58 59 Drafting of letters 60 Submission of fair copies to Pr.Director of Audit/Dy.Directors/Audit Officers 61 Duties of PS/PA/Stenographers 62 Submission of files to Pr.Director of Audit/ Dy.Directors 63 Signing of letters Despatch of letters Service Postage stamps Office Imprest 64 65 66 67 Contingent Expenditure Maintenance of files Maintenance of records Weeding and Destruction of records 68 Office Manual 69 70 71 5 Office Libraries Furniture 72 73 Dead stock register Supply of Liveries to Group D staff Supply of stationery and forms Miscellaneous cash register 74 75 76 77 Telephones Office-orders and office-order Register Custody of Duplicate keys Address of office staff 78 79 80 81 Smoking Gossiping and Loitering Taking Papers home by staff Admission to Outsiders 82 83 84 85 Purchase of Newspapers and periodicals 86 CHAPTER IV ADMINISTRATION INCLUDING HINDI CELL General Duties of the Section Preparation of Pay bills Abstract of attendance Signing of pay bills 87 88 89 90 Income Tax Departmental confirmatory Examination for Auditors Section Officers' Grade examination Eligibility of candidates for SOGE Training of candidates for SOGE 91 92 93 94 Statement of candidates for the 80 GE examination Withdrawal from SOGE Grant of leave to SOGE 95 96 97 Passes and Travelling Allowances to SOGE candidates 98 Syllabus for SOGE 99 Departmental Revenue Audit examination for Section Officers/Asst.AuOs. 100 (Para 104,105 & 106 deleted) Forwarding of applications for Employment outside the IA&AD Forwarding Applications to the UPSC to appear at the competitive examination Officiating promotions in short term vacancies Principal Director of Audit, Central Railway 6 101 102 103 Mutual and Unilateral Transfers Confirmations 104 105 Transfers Continuance of staff in the same seat or section 106 107 Compulsory Retirement 108 Voluntary retirement Pension Pension papers of Non-gazetted officers Pension papers of gazetted officers 109 110 111 112 Family Pension Settlement of bills Maintenance of Service Registers and leave accounts and verification of service 113 114 115 Budget and Revised Estimates Budget and Revised estimates-procedure for preparation Revised and budget estimates-pensionary charges etc. Register of expenditure 116 117 118 119 Register of contingent expenditure Control statements Register of liabilities Appropriation accounts 120 121 122 123 Appropriation accounts of pensionary charges Recovery of rent for railway quarters Recovery Registers Arrear bills 124 125 126 127 Last pay certificate 129 Disbursement of pay & allowances 130 Endorsement of sanctions to Pr.Director of Audit,Eastern Railway,Calcutta131 Leave Prefixing and suffixing of holidays to Leave Leave on Medical Certificate Commuted Leave Leave not due 132 133 134 135 Extra-ordinary leave to Temporary Government servants Maternity leave Calculation of leave-salary Leave salary advance 136 137 138 139 Cash equivalent of leave salary in case of death in service/retirement 140 Advance of TA on tour and transfer 141 Travelling allowance- check of claims 142 Office Manual 7 Children's Educational Allowance/Reimbursement of tuition fees etc Preferring of claims for children's 143 144 educational allowance,re-imbursement of tuition fees/hostel subsidy Over-time Festival advance 145 146 Cycle advance 147 Issue of passes and privilege ticket orders and maintenance of accounts 148 Custody of passes and PTOs 149 Grant-in-aid to Recreation Club 150 Preparation of staff proposals Increments Recruitment of Gr.C staff Recruitment against sports quota 151 152 153 154 Recruitment of Gr.D staff Relaxation of age limit Extension of time limit for joining duty for new recruits Verification of identity 155 156 157 158 Communal Roster Appointment of compassionate ground Appointment of welfare assistant Employment of members of family of government servant in 159 160 161 foreign organizations Promotion to Audit Officers cadre Promotion to the Cadre of Section Officer Promotion to the Cadre of Supervisor 162 163 164 165 Promotion of Auditors as Sr.Auditors Promotion of Clerks as Auditors Promotion of Gr. D staff as Record Keeper Promotion to the Post of Personal Assistant / Sr.PA 166 167 168 169 Promotion to Selection Grade Limited Departmental Competitive Examination Matriculate Gr.D staff for promotion as C/T Departmental Examination for promotion as Steno 170 Training of staff Para 58 of RAM Incentive for acquiring higher qualification Constitution of Official Language Implementation Committee 173 174 175 Principal Director of Audit, Central Railway 8 171 172 CHAPTER V GENERAL AUDIT PROCEDURE General Programme of Audit Periodicity of Audit 176 177 178 Selection of Documents for audit Requisitioning and Returning of vouchers Audit Enfacement Completion of Audit Original Audit by Gazetted officers and AAuO/Section Officers 179 180 181 182 183 Current Review Post Review Maintenance and submission of Registers 184 185 186 Monthly Arrear Report Quarterly Arrear Report 187 188 Raising and pursuance of objections Drafting of objections 189 190 Changes in form and classification Difference of opinion between Audit and Accounts or Executive Audit of Appropriation Accounts Audit Certificate on March accounts 191 192 193 194 Audit of sanctions Sanctions accorded by authorities subordinate to the G.M. Allocation and tracing of bills Pay orders and other vouchers not falling under any other items 195 196 197 198 Check of journal vouchers including scrutiny of adjustment mema Provisional payments 199 200 Registers of Miscellaneous advances etc Registers of irregularities, losses etc 201 202 Register of sanctions having limited currency Review of working of the Accounts Deptt. Reconciliation between Register of bills received and abstract of bills passed Office manuals and procedure office orders of the accounts office 203 204 205 206 Review of audit notes and inspection reports Dead stock register, clothing account, stamp and stationary accounts of accounts offices 207 Passes and PTOs issued by Accounts Offices Rough Audit Notes Local Inspections 209 210 211 Office Manual 9 208 Draft part_I Inspection report or special letter Central Audit 212 213 CHAPTER VI CO-ORDINATION Duties of the section Important results of audit Arrear report 214 215 216 Post review by Section Officers/Asst.AuOs Progress of Inspections Quarterly statement showing clearance of outstanding objections Revision of codes and manuals 217 218 219 220 Review of the working of the Railway Protection Force Statistics of volume of work done in Audit offices Report on the efficiency of internal check Implementation of important orders by the administration 221 222 223 224 Draft para for the Railway Audit Report on outstanding objections and Inspection reports Job analysis of Railway accounts offices Frauds and losses-Delayed report to Audit 225 226 227 Frequency and duration on local audit Annual programme of inspections Intensified inspections Custody and distribution of copies of 228 229 230 Memorandum of instructions regarding audit Procedure office orders issued by the Pr. Director of Audit Classification of procedure office orders Procedure office orders issued by the FA&CAO 231 232 233 234 Audit of grant in aid Recoveries at the instance of audit Tour notes of Pr.Director of Audit/ Dy.Directors Submission of arrear lists of outstanding 235 236 237 letters to the Pr.Director of Audit Meetings of Audit Officers List of cases/Registers to be submitted to the ADAI(Rlys) 238 239 240 Principal Director of Audit, Central Railway 10 CHAPTER VII REPORT Duties of the section Draft audit paragraphs 241 242 Railway Audit Report Memoranda for Public Accounts Committee Review of Part I Audit Notes/Inspection Reports & Special letters 243 244 245 CHAPTER VIII EFFICIENCY CUM PERFORMANCE AUDIT Duties of the section Efficiency-cum-performance audit 246 247 Review of General Manager's Annual Report Review of other Reports Reports of Estimate Committee Reports of difference committees set up by the Central Government 248 249 250 251 Review of Railway budget Review of Progress Report on Economy Review of Appreciation and other reports sent by various departments of the Railway Admn. 252 253 Suggestions award scheme Internal inspection by the Director of Inspection Internal audit Review of Rosters maintained by Administration section 255 256 257 258 Press reports having a bearing on Railway matters or on Govt.Audit Intensified inspections of offices of Heads of Departments etc 259 260 254 CHAPTER IX BOOK AND BUDGET INCLUDING APPROPRIATION AUDIT General Duties of the section Sanctions Check of journal vouchers 261 262 263 264 Tracing of journal vouchers into journals Check of Monthly Accounts with schedules and journals, capital and revenue 265 Office Manual 11 266 Pay orders for payment of unpaid wages Budget grant register and re-appropriation statements 267 268 Check of interdominion transactions Registers of irregularities, losses.etc. Register of major and minor deviations Reconciliation of unpaid wages with general books 269 270 271 272 General cash book Cashier's cash book and pay masters cash book Verification of cash balance Review of miscellaneous advances and deposit registers284 273 274 275 276 Review of demand's payable register Adjustment with other Government Departments Transfer transactions within the same railway and between railways Recovery of guarantees from State Govt.and District boards 277 278 Debt Head Report Capital and Revenue Accounts Finance Accounts Control of Expenditure 281 282 283 284 Transfers without financial adjustment Dividend payable to General Revenues Statement of Deferred Dividend Statement of subsidy from General Revenue 285 286 287 288 Contingency Fund New Services not contemplated in the Budget Clearance of inefficient balances under Suspense Heads Review of paper securities 289 290 291 292 Check of Passes and PTOs issued by FA&CAO(Booking Section) Material for Central Govt.Finance Account Audit Certificate in respect of accounts for the year ending with the March Accounts 293 294 Exhibition in accounts of expenditure between "Consolidated Fund for India" and the `Public Account' etc. Check of Recoveries and payments relating 279 280 295 296 to railway employees Group Insurance Scheme Consent Audit and Audit of statutory and Autonomous Bodies 298 Guarantees given by Central Govt. Review of expenditure from the Secret Service Fund 299 300 Principal Director of Audit, Central Railway 12 297 Review of Civil Audit Reports Appropriation Audit 301 302 Appropriation Accounts of Civil Grants Appropriation Audit Appropriation Accounts of Railway Grants Review of Performance Budgeting 303 304 305 CHAPTER X ESTABLISHMENT AND PROVIDENT FUND AUDIT Duties of the section Audit of sanctions Audit of pay bills Changes in Audit procedure as a result of computerisation 306 307 308 309 Labour pay sheets Special pay sheets and supplementary bills Overtime and running allowance bills Income tax deductions in pay, pension etc. 310 311 312 313 Travelling allowance bills Attendance Register Educational assistance bills and tuition fee bills Medical attendance bills of gazetted officers 314 315 316 317 Subsistence allowance Dearness and other allowance Unpaid wages statements House rent,water and conservancy charges 318 319 320 321 Electricity charges Diet charges Recovery of Advance Scale check 322 323 324 325 Allocation Cadre register of gazetted officers Fixation of pay on first appointment & refixation of pay due to revision of scales of pay or other reasons. 326 327 328 History of services of officers of the Railway Department Disallowance lists Register of foreign service contributions Recovery of Government shares of fees 329 330 331 received by Railway servants Payments under workmen's compensation act Leave accounts of gazetted officers including leave salary certificate for leave out of India 332 333 Office Manual 13 334 Leave salary certificate for leave out of India 335 Leave accounts of subordinates Audit of Provident Fund Account Half yearly, review of provident fund ledgers 336 337 Temporary withdrawals from provident fund Final withdrawals from provident fund Reconciliation of provident fund ledger accounts with general books 339 340 338 341 Special contribution to provident fund/ gratuity Interest credits and bonus contributions Verification of pensionable service 342 343 344 Audit of accounts of Railway staff benefit fund Audit of pensions including family pensions Audit of pension paid vouchers 345 346 347 Audit of vouchers relating to Family Planning Audit of transactions relating to Deposits linked insurance scheme Bills on account of payment of cash equivalent of leave salary to family of govt. servant who dies in harness and cash payment in lieu of unutilised earned leave on date of retirement Scope and extent of Audit check on the 348 349 350 transactions relating to Railway employees Group Insurance scheme Review of court cases finally settled in courts(staff matters) 352 Audit of vouchers relating to Audit offices of Western and Northern Railways Maintenance of Audit Register Scale chech 353 354 355 Arrears and Refund claims Check of increments Travelling allowance bills Contingent bills 356 357 358 359 Educational assistance bills Statement of recovery of advances Audit certificate 360 361 362 Principal Director of Audit, Central Railway 14 351 Audit of Provident Fund Accounts of Railway Audit staff 363 Audit of pensions cases of Railway audit staff Selection register Current review 364 365 366 Post review Reconciliation register Issue of objections Miscellaneous 367 368 369 370 CHAPTER XI EXPENDITURE (WORKS) AUDIT Duties of the Section Sanctions Estimates Completion Reports 371 372 373 374 Contingent vouchers Review of contracts and Tender Review of implementation of contracts Grants-in-aid and contribution to 375 376 377 schools Check of passes and PTOs issued by FA & CAO(Expr.section) Audit of contractors bills 378 Measurement books Works registers, allocation registers Review of suspense registers Review of productivity outlay Review of major works 381 382 383 384 385 Agreements and accounts of sidings Objectionable items register Land register 386 387 388 Register of buildings Law charges Review of court cases and arbitration awards 389 390 Bills for rent of telegraph wires Recovery of conservancy charges from State Government 392 Office Manual 379 380 391 15 393 Block account Subsidy to co-operative societies, 394 canteen etc. Manufacturing accounts Hospitality fund Pay orders and Misc-vouchers 395 Bills for Family Planning Canteen accounts capital and revenue accounts of residential buildings 397 398 396 399 Catering accounts Review of the working of the Accounts department 400 402 CHAPTER XII STORES AUDIT General Duties of the section Audit jurisdiction Review of stores contracts Audit of Railway Board's contracts 403 404 405 406 Review of implementation of contracts Purchase orders Risk purchase statements and claims register 407 408 Audit of stores bills Port and Custom charges for imported stores 410 411 Sales abstracts and sales registers Review of suspense register 412 413 Stock verification reports Auction sale account Yearly statement of stores transactions Stores transit register 414 415 416 417 Stock adjustment accounts Fuel accounts Imprest stores Account,custody and disposal of scrap Survey Committee Reports Losses,embezzlement etc. Inspection of the work of receipt and despatching sections of stores depots Principal Director of Audit, Central Railway 409 418 419 420 421 422 423 424 16 Changes in audit procedure as a result of computerisation in stores accounting 425 Check of journal vouchers including scrutiny of adjustments Audit of sanctions Audit of stores journal 426 427 428 Audit of price lists Audit of stores manufacturing(cloth manufacturing accounts) 429 430 CHAPTER XIII WORKSHOP AUDIT Duties of the section Special provision audit items 431 to certain workshop 432 Audit of sanctions Audit of estimates Audit of completion reports Audit of stores and contractors bills 433 434 435 436 Audit of incentive bonus bills Piece work and bonus bills Bonus bills for maistries Bonus bills for chargemen Booking of overtime 437 438 439 440 441 Muster rolls, labour paysheets and time sheets Labour pay sheets Miscellaneous advances and deposit registers 442 443 444 Workshop manufacturing suspense account Workshop general register Electrical manufacturing account Classification of labour 445 446 447 448 Classification of stores On costs Proforma on cost Distribution of on cost charges 449 450 451 452 Out-turn statements Workshop account current Reconciliation of monthly account current of stores with sub-ledgers 453 454 455 Transfer statements of mema Advice notes and returned stores 456 457 Office Manual 17 Review of major works undertaken in railway workshops 458 Work orders Recovery of interest charges Review of statistics of periodical overhaul and cost of unit repairs 459 460 overhauling Saw mill account Foundry account Job costing 461 462 463 464 Accounts custody of disposal of scrap material Recovery of non-ferrous turnings/ borings from shop floor Records of rolling stock 465 Local inspection of shops Reconciliation of capital (Manufactured,Printing & stationery) Out-turn statement of printing press, Byculla 468 469 Traction motor workshop at Nasik Road Audit of establishment and provident fund accounts of workshop staff Utility of statistics in audit 471 466 467 470 472 473 CHAPTER XIV TRAFFIC AUDIT General Audit of invoices Audit of invoices/inland way bills(CONCOR) Review of monthly incorrect statements Audit of invoices of non-government railways Comparison of outward and inward traffic returns and review of unaccounted invoices 474 475 476 477 478 479 Audit of railway material traffic notes Wharfage and Demurrage returns Check of wagon registration fees remission and refunds of wharfage and 480 481 482 demurrage charges Demurrage charges due from big firms Handling bills (coaching & goods) 483 484 485 Principal Director of Audit, Central Railway 18 Check of crane charges Tolls and taxes 486 487 Proforma account of work done on behalf of other government department Refund lists and overcharge sheets Cashiers station cash book 488 489 490 Traffic suspense accounts Statement of siding charges Review of register of private and assisted sidings 491 492 493 Traffic book and accounts office balance sheet Audit of goods balance sheet Net balance statement 494 495 496 Review of tenders and contracts Review of missing or delayed returns Write off cases and auction sale statements Concurrent check of police warrants and 497 498 499 credit notes Review of register of credit notes kept pending Review of inspection reports of station 500 inspections by travelling ticket inspectors of accounts and traffic accounts officers Apportionment of earnings between main and worked lines Pooling traffic arrangements Collection and delivery service procedure for payment to contractors Payment of terminal charges to the Mumbai Port Trust Railways Review of exempted debits/error sheet register Review of Register of Objectionable items and Provisional Payment Miscellaneous statements (goods and coaching) Review of accounts office work Review of appraisal reports of container service Office Manual 19 501 502 503 504 505 506 507 508 509 510 511 Changes in audit procedure as a result of computerisation of accountal of traffic receipts (goods) 512 CHAPTER XV TRAFFIC AUDIT (COACHING ACCOUNTS) General Passenger classification 513 514 Audit of collected tickets and ticket collectors' report Returns of tourist agents Excess fare returns 515 516 517 Luggage,horse, carriage and dog returns 518 Demurrage and wharfage on parcels and left luggage 519 Check of coaching traffic non government railways Special trains, tourist cars etc Audit of parcel way bills 520 521 522 Telegraph traffic receipts Audit of sundry earnings Audit of coaching balance sheet Postal bills 523 524 525 526 Through and two route season tickets Check of out agency charges Concurrent check of passes issued to member of Parliament 527 528 529 Verification and certificate of pilgrim tax statements Miscellaneous cash remittance returns Changes in audit procedure as a result of computerisation of accountal of traffic receipts (coaching) Principal Director of Audit, Central Railway 530 531 532 20 CHAPTER XVI TRAFFIC AUDIT (STATION INSPECTION) Scope of audit List of stations Review of cases of compensation claims for goods lost,damaged etc. during local inspections Examination of competency of sanction for concessions granted by the Railway administration Computerised reservation system Utility of statistics in Audit 533 534 535 536 537 538 CHAPTER XVII COMPENSATION CLAIMS AUDIT Scope of audit Duties of the section 539 540 Review of claims cases Review of court cases Half yearly and yearly reviews Claims cases to be seen during 541 542 543 local inspections Pay-orders passed for payment of compensation claims 544 545 CHAPTER XVIII CONSTRUCTION AUDIT Scope of Audit Duties of the section 546 547 Periodicity of Audit Classification and re-classification of soils Audit of contractors bills 548 Check on account bills of contractors Employment of Project Casual Labour Inspection of construction offices Inspection of sub.offices 551 552 553 554 Items to be seen during inspections Review of major works Works registers 555 556 557 Office Manual 549 550 21 CHAPTER XIX METROPOLITAN TRANSPORT PROJECT AUDIT General and duties of the section 558 CHAPTER XX INSPECTIONS General and Duties of the section Objectives of Inspections Programme of inspections 559 560 561 Distribution of inspection works Periodicity of inspections Procedure for taking up the inspections Intensified inspections 562 563 564 565 Supervision of Inspections by Branch Officers Inspection of sub-offices Inspection of new offices 566 567 568 Point to be seen during inspections Check of labour paysheets Drafting of Audit Notes Disposal of audit objections 569 570 571 572 Register of progress of inspections Review of major works Review of inspection reports Shop inspections 573 574 575 576 Traffic audit inspections Time allowed for inspection of various offices Inspection of stations,serving 577 578 Marshalling yards,inter-change points, transhipments and repacking sheds Time standards for the inspections of Marshalling yards, interchange points, transshipment and repacking sheds Principal Director of Audit, Central Railway 579 580 22 CHAPTER XXI MAINTENANCE AND SUBMISSION OF VARIOUS REGISTERS General Opening of registers 581 582 Submission of registers to Dy.Directors/ Pr.Director of Audit 583 CHAPTER XXII RAILWAY ELECTRIFICATION PROJECT AUDIT General 584 CHAPTER XXIII COMPUTER AUDIT Computeristion on Central Railway Audit Jurisdiction Introduction to EDP Audit I.T. Audit Objectives 585 586 587 588 I.T. Audit I.T. Audit Cell Audit Approach to computers Computer References 589 590 591 592 In house training 593 EDP Training Courses 594 Office Manual 23 ANNEXURES Annexure No. Refe r ence to Paragraph 1. Delegation of Admn. Financial powers to the Dy Director (Admn) 9 2. Delegation of powers to Audit Officer (Admn) 8 3. Form of registr of oath/affirmation 19 4. Delegation of powers to AAuO/SO(A) vis-à-vis their duties and responsibilities 21 5. Proforma for register of “A” Dak 58 6. Proforma for register of “B” and “C” Dak 58 7. Preservation period of records not mentioned in RAM 71 8. Syllabus for Revenue Audit Examination for SOs/AAuOs 100(4) 9. Forms of claims of Children’s Educational Allowance RTF 143,144 10. Hostel subsidy –employees’ certificate 143,144 11. Hostl subsidy school certificate. 143,144 12. Proforma for showing expdenditure on overtimre allowance 145(4) 13. Proforma for overtime register 145(4) 14. Certificate by drawing and disbursing officer on overtime bills 145(4) 15. Monthly progress Report 187,216 16. Quarterly arrear report 216 17. Certificate for work Q.E.report 188 18. Register of important results of Audit 215 19. Statistics of volume of work done in Railway Audit Offices 222 20. Material for draft para-report on outstanding objection and inspection reports 225 21. Report regarding recoveries at the instance of audit 236 22. Register of potential draft-audit paragraph cases 242(12) 23. Register of draft audit paragraphs 245 24. Items for special investigation and review of published statistics by ECPA & other units 246 25. Illustrative list of subjects to be reviewed during intensified inspection 260(3) 26. Register of review of contract 376(8) 27. Register of review of implementation of contracts 377(8) 28. Register of review of productivity tests done by railway administration 384 29. List of storesdepots on the Central Railway 404 30. Items to be seen during local inspections of shops 468 31. Items to be seen during local inspection of stations 534(8) 32. Register for review of court cases finally settled in various courts 542 33. Annual inspection programme 561 34. Item to be seen during local inspection of various offices 564(4) 35. Monthly inspection programme 565 36. Proforma for register of progress of inspections 573 36A.Progress of Inspections 218 37. Items to be seen during review of major works 574 38. Time allowed for inspection to various offices 578 39. Proforma for calendar of returns 581 40. Proforma for register of progress Report 581 41. Proforma for sectional register 581 42. Proforma for selection register 581 43. Proforma for current review register 581 44. Proforma for register of special letters/Part I Audit Notes/ Inspection reports 581 45. Proforma for register of Part II Audit Notes/Inspection Reports 581 46. Proforma for register of sanctions received from the Railway Board 581 47. Proforma for register of sanctions received from the General Manager 581 48. Proforma for register of sanctions received from the Heads of Departments 581 49. Proforma for register of outward correspondence and issue of reminders 581 50. Proforma for register of pending cases 581 51. Proforma for register of recoveries at the instance of audit 581 52. Proforma for register of petty objections 581 53. Proforma for register of important orders and decisions 581 54. Proforma for register of review of accounts office work 581 55. Proforma for register of original audit and post review by Gazetted/Section Officers 581 56. Statement of periodicity of submission of registers 583 ******** Office Manual 25 CHAPTER I CONSTITUTION OF THE OFFICE 1. The Comptroller and Auditor General of India (CAG) is the head of the Indian Audit and Accounts Department (IA&AD). Principal Director of Audit, Central Railway, is responsible to the CAG of India in respect of Administrative matters and audit through the Deputy Comptroller and Auditor General of India (DAI)/Additional Deputy Comptroller and Auditor General of India (ADAI) (Railways). 2. Organisation: The Central Railway is organised into divisions and units for management purpose. The organisational set up of the Office of Pr.Director of Audit follows a similar pattern with auditing units being located alongside accounting units of Railway Administration. The establishment of the Office of the Principal Director of Audit is divided into Sections and Divisional/Branch offices as shown below. 1) Headquarters office, Mumbai consisting of the following sections, viz. a) b) c) d) e) Administration Section (including routine and records training and Hindi cell) Co-ordination section Report section Books and budget audit section Efficiency cum Performance audit section including Special Investigation and Review Cell f) Establishment, provident fund and pension audit section g) Expenditure audit section h) Stores audit section including review of contracts i) Traffic audit section (goods,.local and foreign) j) Traffic audit inspection section k) Traffic audit section (coaching) l) Workshop and stores audit section,Parel m) Workshop and stores audit section,Matunga n) Survey and construction audit section o) Compensation claims audit section p) Intensified inspections cell q) Computer audit cell r) Costing cell (Para 3.7.3 of report of the committee on Railway Audit Norms) 2) Divisional Audit Office, Mumbai 3) (a) Divisional Audit Office, Bhusawal (b) Construction Audit, Bhusawal (c) POH, Bhusawal POO no.1063 dated 6.6.79 and POO no.1098 dated 30.11.84) 4) (a) (b) Divisional Audit Office, Nagpur Construction Audit Section, Nagpur 5) (a) (b) Workshop and Stores Audit Section, Jhansi Construction Audit Section, Jhansi 6) i) Construction Audit Section, Jabalpur 7) Divisional Audit Office, Solapur (w.e.f.1.11.77) 8) Construction Audit Section, Pune 9) (a) Railway Electrification Audit Bhopal (POO No.1114 dated 7.5.87 and C.S.86) 3. Composition of Gazetted staff: Group "A" (IAAS) Officers 1. Pr.Director of Audit is an officer of the Indian Audit and Accounts Service of the rank of Pr. Director of Accounts. The post of Pr.Director of Audit is a permanent post (vide Ministry of Finance letter no. F14(3)/EGI/60 dated 28.4.1960, received under Comptroller and Auditor General of India's letter no.2291-EGI-50-60 dated 4.5.1960) 2. Deputy Directors: Pr.Director of Audit is assisted by one Deputy Director who also belongs to the IA&AS. This post is permanent. (CAG.’s ltr.No.919-GE.i/85-03 dtd.22.2.2005) 3. The post of Assistant Director of Audit is a permanent post and is operated whenever an officer is posted against this post. 4. Gazetted Establishment:- The sanctioned strength of Gazetted staff as on 1st March is given in the gradation list prepared every year. As per the recommendations of the VIth pay commission, the revised pay of Gazetted staff (Group A & B) (Table I) are as under: TABLE I DESIGNATION OLD PAY SCALES REVISED PAY SCALES (as per VIth pay commission)2006 Pr. Director of Audit 18400-500-22400 PB-4/37400-67000 GP 10000 Director 12000-375-16500 PB-3/15600-39100 GP 7600 Deputy Director 10000-325-15200 PB-3/15600-39100 GP 6600 Sr.Audit Officer 8000-275-13500 PB-3/15600-39100 GP 5400 Audit Officer/Sr.Data Processor 7500-250-12000 PB-2/9300-34800 GP 5400 Assistant Audit Officer 7450-225-11500 PB-2/9300-34800 GP 4800 5. Non-Gazetted Establishment: The sanctioned strength of Permanent and Temporary non-gazetted establishment as on 1st March is given in the gradation list. Table II shows the scales of pay of non-gazetted staff (Group C & D). TABLE II Designation Old pay scales Revised pay scales (as per VIth commission)2006 Peon 2550-55-2660-60-3200 4440-7440 GP 1800 Sr.Peon/Daftary 2610-2910-65-3300-70-4000 4440-7440 GP 1800 Jr.Gestetner operator 2610-2910-65-3300-70-4000 4440-7440 GP 1800 Record keeper 2750-70-3800-75-4400 PB 1/5200-20200 GP 1800 SG Record keeper 3050-75-3950-80-4590 PB 1/5200-20200 GP 1900 Staff car driver 3050-75-3950-80-4590 PB 1/5200-20200 GP 1900 Office Manual 27 pay Clerk Typist 3050-75-3950-80-4590 PB 1/5200-20200 GP 1900 Data entry operator 4000-100-6000 PB 1/5200-20200 GP 2400 Stenographer Gr.III 4000-100-6000 PB 1/5200-20200 GP 2400 Stenographer Gr.II 5000-150-8000 PB 2/9300-34800 GP 4200 Stenographer Gr.I 5500-175-9000 PB 2/9300-34800 GP 4200 Auditor 4500-125-7000 PB 1/5200-20200 GP 2800 Sr. Auditor 5500-175-9000 PB 2/9300-34800 GP 4200 Sr. Console Operator 5500-175-9000 PB 2/9300-34800 GP 4200 Section Officer/ 6500-200-10500 PB 2/9300-34800 GP 4800 Welfare Supervisor Note: The rules relating to promotion to selection grades are contained in GOI MOF OM No.F(21) E111A/74 dated 10.1.77 received with CAG's orders nos.1963-NGEW/55-77 dated 19.9.79 and 1067-NGE IV/54/77 dated 20.9.79 as amended from time to time. Principal Director of Audit, Central Railway 28 CHAPTER II DEPARTMENTAL REGULATIONS 6. Powers and Responsibilities of Pr.Director of Audit: Powers of Pr.Director of Audit relating to technical matters are derived from Manual of Standing Orders (Audit) Vol.I. The scope and extent of audit are detailed in the Memorandum of Secret Instructions regarding extent of audit(Railways) and orders issued by CAG from time to time. Pr.Director of Audit may also relax the prescribed extent of audit as laid down in para 3 of Secret Memorandum. Pr.Director of audit has been declared as `Head of Department' for purposes of exercising powers under Fundamental Rules and Supplementary Rules and General Financial Rules. The financial and administrative powers of the Pr.Director of Audit are given in CAG's Manual of Standing Orders (Administration) volume II. Functions of Pr. Director of Audit are described in paras 7 to 12 of RAM. The Pr.DA is assisted by Director/ Deputy Directors and Sr/ Audit Officers. 7. Transfer of charge: (Paras 43 to 45 of MSO vol.1) When Pr.DA is relieved either permanently or temporarily of his/her charge, Administration Section should collect material from various Sections/ Divisions and prepare a Memorandum of Transfer of Charge keeping in view instructions given in para 21 of RAM. 8. Powers of (Administration): Director/Deputy Director/SrAudit Officer/Audit Officer Pr.DA has declared Director/Director/Dy Director (Administration) to be the Head of Office who will exercise specific powers laid down in General Financial Rules and other orders subject to such conditions and limitations as are prescribed in those orders or by other competent authority. Directions in the relevant rules should be rigidly complied with and certificates if any, prescribed therein furnished. Powers delegated to Director/ Deputy Director (Administration) are given in Annexure I to this Manual. Powers delegated to SrAudit Officer/Audit Officer (Administration) are given in Annexure II to this Manual. 9. Fixing Headquarters and posting of Gazetted Officers: Fixing of Headquarters and posting of gazetted officers(other than IA&AS) are made by Pr.Director of Audit subject to any general or special instructions issued by CAG(c/f para 24 of RAM). Whenever a gazetted officer is posted to an Audit Office outside Headquarters, a report should be sent to CAG (CAG's letter no.2344-RAI/17-9/67 dated 5-7-1967). 10. Operation of Posts of Sr/ Audit Officer in lieu of IA&AS posts:- Pr.DA should not operate temporary posts of Sr./ Audit Officers in lieu of vacant IA&AS posts without prior approval of CAG except in unforeseen circumstances and if it is administratively unavoidable. No such post should, however, be operated if the vacancy is expected to be for less than 46 days (c/f para 162 MSO(1)C.S.43) 11. Appointment of Assistant Directors of Audit/Audit Officers: Pr.DA is the appointing authority for Assistant Directors of Audit and Sr/ Audit Officers. 12. Appointment of a Sr.Audit Officer to hold charge of Deputy Director: Sr./ Audit Officer appointed to perform current duties of Director/Dy Director can exercise administrative and financial powers vested in Deputy Director but cannot exercise statutory powers whether derived direct from an Act of Parliament or rules, regulations and byelaws made under the authority of the Constitution (Fundamental Rules,Classification, Control and Appeal Rules, Civil Service Regulations, Delegations of Financial Power Rules etc).(Ministry of Home Affairs O.M.No.F7/14/61-Estt(A) dated 24th January 1963) 2. A Sr/ Audit Officer entrusted with charge of the post of Director/Dy Director with prior approval of CAG, will be entitled to a Special Pay of Rs.300/ p.m. Such ad-hoc arrangement can be made initially for a period of 6 months which can be extended upto a period of one year, depending on performance of the officer during the previous 6 months and on specific recommendation of Pr. Director of Audit. (CAG's letter no.4936-GE1/183-82 of 1.9.1982) 13. Distribution of work among Gazetted Officers: The distribution of work among Gazetted Officers is decided by Pr.D.A . Instructions contained in paras 136 et seq of RAM should be borne in mind. A return showing the distribution of charge among the officers as on 1st October is required to be sent to CAG by 31st October each year. 14. Handing over notes of other Gazetted Officers and staff: When an officer is relieved of his/her charge, a detailed handing over note indicating state of work in the sections under him/her and important cases should be prepared for information of his/her successor. Confidential files should be separately listed in the handing over notes. The handing over notes should be put up to immediate superior. This procedure should also be followed by AAuOs/SOs and other staff at the time of relief. 15. Tour Programme: Officers should draw up their monthly tour programmes and send them to co-ordination section before 25th of the previous month. Co-ordination section should obtain approval of Dy.DA/Pr.DA and communicate approval to the Officers concerned. 16. Returns and sanctions regarding property-movable and immovable: Annual returns due from Officers under Central Civil Services(Conduct Rules) 1964 regarding movable and immovable property should be sent to Pr.DA in the first week of January. The return relating to Officers of IA&AS should be sent to Assistant Comptroller and Auditor General (Personnel). The sanction of competent authority as laid down in CCS (Conduct) rules 1964 should be obtained for purchase of movable or immovable property subject to monetary values contained therein. 17. Payment to Gazetted Officers of Indian Audit and Accounts Service are made by PAO/Audit AG(A&E)'s office Maharashtra, Mumbai on the basis of pay bills submitted by this office. 2. Pay bills of Gr.B Gazetted Officers of this office should be forwarded to Financial Adviser and Chief Accounts Officer (Establishment Gazetted Section) Central Railway, Mumbai CST for arranging disbursement. 3. After payment, the bills are forwarded by FA&CAO, Central Railway to Pr.DA, Eastern Railway, who is the Audit Officer of this office.(c/f para 70 of RAM). FA&CAO also furnishes a statement of Expenditure and a Certificate by 5th of the second following month to Pr.DA, Eastern Railway with a copy to this office as laid down in para 1230 AI. 4. General Provident Fund Accounts of staff of this office are maintained by FA&CAO Central Railway who also watches recovery of GPF and other advances of these officers. 5. Travelling allowance claims of Gazetted Officers should be preferred by first week of every month. Claims for medical reimbursement bills and bills for honoraria should be dealt with in the same manner as for non-gazetted staff. Bills for all types of claims of gazetted officers should be authorised by Director/Deputy Director (Administration). 6. Leave accounts and service records of gazetted officers and non-gazetted staff should be maintained by this office. The service of officers and staff should be verified with reference to office copies of salary bills and recorded in the service books under the signature of Director/Dy Director. Principal Director of Audit, Central Railway 30 7. Copies of all notifications/orders regarding appointments, transfer, leave, promotion of gazetted and non-gazetted staff should also be endorsed to FA&CAO(Gaz)/PF Central Railway and Pr.DA .Eastern Railway, Calcutta. 8. Pension and leave salary contributions in respect of gazetted officers on foreign service are to be remitted by the foreign employers to Chief Cashier,Central Railway,Mumbai CST under intimation to this office. 18. Appointment of non-gazetted staff: Pr.Director of Audit is the appointing authority for AAuOs/SOs and supervisors and the Director/Deputy Director (Admn) for all other(Gr.C and D) staff. 19. Oath of Allegiance: All entrants to Government service should take an oath of allegiance to the Republic of India. Taking of the oath should be made one of the terms of their appointment. The form of oath is as follows: " I ............................ do swear that I will be faithful and bear true allegiance to India and to the Constitution of India as by law established and that I will loyally carry out the duties of my office. So help me God!. Conscientious Objector to oath taking may make a Solemn affirmation to the same effect. (see para 285 of MSO(A) Vol.I) A record should be maintained of all government servants who have taken oath in the form prescribed vide Annexure 3 to this Manual. Authorised version of the above oath/affirmation in various regional languages may be administered to staff who are not conversant with English and copies of these may be obtained from the office of the Press Information Bureau. (Ministry of Home Affairs OM No.31/1/35-Esstt (A) dated 26.4.1959 received under CAG's endorsement no.2637-NGE.II/274-59 dated 5.4.59). The oath or affirmation should be taken/made before the Director/Deputy Director (Admn)/Branch Officer in the Head Office and outstations as the case may be. 20. Conditions of service: Staff of Railway Audit Department are governed by conditions of service prescribed in the following rules as amended from time to time: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Fundamental and supplementary rules (except for Travelling allowance) Central Civil Service(CCA) Rules Central Civil Service(Conduct) Rules Central Civil Service(Revised Pay)Rules 1986. Central Civil Services(Leave) rules. General Provident Fund rules. Liberalised Pension Rules Central Civil Service Regulations Central Services (Medical Attendance) Rules,1944 Travelling allowance rules contained in Indian Railway Establishment Code vol.II Railway pass manual for purpose of issue of free passes and PTOs to the staff of this office. 21. Promotion of Assistant Audit Officer as Audit Officer: From 1.3.1984, promotion to the cadre of Audit Officers will be only from the cadre of Assistant Audit Officers. The period of service as Assistant Audit Officers under existing rules and orders for promotion as Audit Officer will be combined service as Section Officer(Audit) and as Assistant Audit Officer(Para 3.12 of Manual of Instructions for restructuring of cadres in IA&AD). Office Manual 31 b. An office order regarding fixation of pay on such promotions should be issued separately and copies endorsed to the FA&CAO, Central Railway, Mumbai and Pr.Director of Audit, Eastern Railway. c. The powers delegated to Section Officer (Audit) /Assistant Audit Officers are detailed in Annexure 4 to this Office Manual. 22. Transfers from one office to another: Members of Subordinate Railway Audit Service (SRAS) including SOGE passed Auditors are not ordinarily transferred to any other Audit and Civil Accounts offices. Subject to conditions mentioned in paras 189 and 190 of MSO (Admn). Unilateral and mutual transfers of other staff excluding Sr.Auditors from one office to another of IA&AD can be permitted in deserving cases. In the case of unilateral transfer, the person transferred is assigned the lowest position in seniority list of the relevant cadre. In the case of mutual transfers seniority for the lower of the two lengths of service as Auditor/Clerk/Typist/Class IV (as the case may be) should be given to both the employees in the new offices to which they are transferred. (CAG's letter no.2200-NGE.II/141-65.II dated 13.9.1965) 23. Deputation: Deputations including those on foreign service terms of officers and staff are governed by the general conditions laid down in Ministry of Finance letter no.F10(24)-E III/60 dated 4th May, 1961 and F1(11)E111(B)75 dated 7.11.1975 as amended from time to time. While drawing up of annual panel and initial selection for deputations of Sr/ Audit Officers and Section Officer/Assistant Audit Officers will be done by CAG, formal sanctions to transfer on foreign service as well as to extensions of tenure on service to Central/State Governments etc. should be issued by Pr.DA. Pr.Director of Audit has powers to extend period of deputation upto 5 years and for period beyond 5 years approval of CAG is required. (Director of staff's DO no.86-GII/I-89 dated 5.1.89) 2. In respect of members of staff deputed on foreign service terms contributions towards pension and leave salary should be recovered from borrowing departments. A specific condition to this effect indicating the rates of recovery, mode and place of payment should be incorporated in the terms and conditions. 24. Confidential Reports: Instructions contained in paragraphs 139, 170, 191 and 295 of MSO (Admn) vol.I as amended from time to time should be borne in mind. Confidential Reports of all members of staff based on their performance and conduct during period of report should be written up annually in April each year and sent to Director/Deputy Director (Admn) by 30th May each year. Confidential Reports of Stenographers should be written by the Officers to whom they are attached. Blank forms of confidential reports should be sent by PA to Director/Dy Director to all Branch Officers by 10th April. Confidential Reports for periods less than three months need not be written. 2. The reporting officer for Senior Auditors/Auditors/Clerk-Typists/Record keepers will be Section Officer/Assistant Audit Officers. For Section Officer/Assistant Audit Officers the Branch Officer will be the reporting officer. Reviewing Officer in these cases will be respective Branch Officer/Deputy Director. The new appraisal system requires certain attitudinal changes. Reporting and reviewing officers should not shy away from mentioning shortcomings in performance, attitudes and overall personality of the officer reported upon. A record of punishment imposed upon government servant as also of awards granted, certificates given, should be kept in his/her Confidential Report. 3. Since confirmation, crossing of efficiency bar, promotion, etc. are based on assessments recorded in the Confidential Reports. It is of great importance that Confidential Reports are Principal Director of Audit, Central Railway 32 written clearly, consciously and in an unbiased manner. Reporting and Reviewing Officers should pay due attention to writing of these reports. Following important guide lines should be borne in mind while writing the reports: i. All columns of Confidential Report form should be filled in properly as per instructions contained therein by Reporting/Reviewing Officers. No Column should be left blank. Each column should be filled in independently and words like "ditto" should be avoided. ii. Careful attention should be paid towards usage of words, and expressions in the Confidential Reports. Words and expressions used should be unambiguous and there should not be any scope for misinterpretation of the language used. Words or expressions such as "fair' satisfactory" should be avoided. iii. Words used in various columns should not be contradictory. General assessment given should not be in conflict with the observations made against individual columns. iv. Remarks given in individual columns should be relevant and appropriate to the item in the confidential report eg.against column 'whether the person is fit for promotion', words/expressions like 'very junior' `question does not arise' should not be used. v. Deficiencies and defects, if any, recorded in the Confidential Reports should be substantiated in a separate note attached thereto. It should also be stated whether the official was warned either verbally or in writing and given an opportunity to improve his/her working. vi. Reviewing Officer should exercise positive and independent judgement on the remarks of Reporting Officer under various detailed headings in the Confidential Report form as well as on the General Assessment and express clearly his/her agreement or disagreement with the remarks of Reporting Officer. vii. In case of disagreement, the reasons for disagreement should be stated on a report sheet, if necessary. viii. If Reviewing Officer changes the nature of the report by adding any adverse remarks, the reasons therefore should be stated clearly and conspicuously fully supported by facts and figures. ix. Adverse remarks should be communicated only after these have been accepted by the Superior Officer. In no case, the Reporting/Reviewing Officer should communicate at his/her level. (DCA/CR/9 dated 10.3.1976) 25. Permission to join officially sponsored Organisation: Permission to join officially sponsored Organisation like Civil Defence, Home Guards,St.John Ambulance Brigade etc. is granted to a member of staff subject to the condition that it does not interfere with the efficient discharge of their official duties. 26. Permission to join Educational Institutions: Permission to join educational institutions outside office hours is granted to staff by the Pr.Director of Audit in deserving cases subject to the condition that it does not interfere with the efficient discharge of their official duties and may be withdrawn at any time without assigning any reasons therefor. Such permission does not in itself exempt the employee from transfer to another station during the course of the academic year. 27. Representation to higher authorities: An appeal or representation for redressal of grievances must not be made by the Government servant to a higher authority unless the lower authority has already rejected his/her case or unduly delayed the disposal of the case. Even then representations should be submitted to the higher authority only through proper channel. Representations addressed to still higher authorities (like the President of India, CAG etc) must not be made unless all means of securing redress from lower authorities have been exhausted. Office Manual 33 In such cases the petitions should be submitted in duplicate through proper channel and should not be forwarded by the government servant direct. Instructions contained in appendix 3 to Choudhry's Compilation of CS Rs.Vol.II should be referred for submitting petitions to President. The CAG has issued the following instructions: 1. Letters sent to the CAG's office should be as self contained as possible without unnecessary enclosures. 2. Whenever a representation from any officer is forwarded to the CAG's office, comment or views thereon of the forwarding offices should invariably be given in the forwarding letter. 3. The representations should be sent through proper channels as per rules. (POO 1019 date 15.9.1975) 28. Leave to IA&AS officers: The Pr.Director of Audit is empowered to sanction leave other than special disability leave, study leave, leave not due and LPR to IA&AS officers serving under him/her as follows: 1. Officers in Jr.Admn.Grade and officers in Senior upto 45 days scale: 2. Other IA& AS officers: upto 60 days These powers can be exercised subject to the following conditions:a. The Pr.Director of Audit is satisfied that the work will not suffer by the absence of the officer on leave b. It is possible to make adequate internal arrangements so that the work of the office as a whole does not suffer. If leave is to exceed 21 days, the proposed internal arrangement should be communicated to the CAG in good time before the leave commences. Where, however, leave is asked for on emergency grounds and it is not possible to report the internal arrangement to the CAG in good time before commencement of leave the report should be sent to the CAG not later than when leave is sanctioned. c. If the Pr.Director of audit needs a substitute in place of the officer proceeding on leave, prior approval of the CAG should be obtained before leave is sanctioned.(AG's letter no.6265 E 1/209-68,dated 10/10/74(Au/Admn/X/1-VolII). 29. Maintenance of secrecy in official matters:- Rule II of Central Civil Services(Conduct)Rules 1964 prohibits a Government servant from communicating without authority to anyone including a fellow government servant any information acquired by him/her in the course of his/her official duties. Such wrongful communications of information as well as retention or removal of any document containing such information is punishable under the Official Secrets Act, 1923. It is the responsibility and direct concern of every government servant in whatever capacity he/she is employed to safeguard security of all classified information and papers to which he/she has access in the course of his/her official duties or of which he/she comes in possession in any other way. It is his/her duty to bring to the notice of his/her superior officer, any breach of security regulations in general and in particular any disclosure of classified Principal Director of Audit, Central Railway 34 information either deliberately or in advertantly of which breach or disclosure he/she may have knowledge. There are the following four types of security gradings:a. Top secret b. Secret c. Confidential d. Personal not for publication A document bearing any of the above security classification is known as a classified document. 30. Treatment of confidential papers: A confidential paper should be addressed to an officer by name and should be opened by the addressee or in his/her absence by an Officer performing his/her duties. A confidential paper should be personally taken to the typing section by the AAuO/SO who should bring back the draft, typed copies and the used carbon papers to the section dealing with the confidential paper. 31. Treatment of secret papers: All drafts, rough notes and other routine papers which are no longer required after the fair copy has been prepared should invariably be destroyed by the Officer dealing with them as soon as he/she signs the fair copy of the letter, note etc. A note to the effect that this has been done should be recorded on the office copy of each case. 2. A Branch Officer should check and weed out the stock of spare copies at frequent intervals and should destroy any paper whose retention is considered to be unnecessary. A note to this effect should be kept in the register meant for the purpose. Used stencils returned by the typing section to the section concerned should be treated as spare copies of secret documents. 3. For duplicating a secret paper, the Branch officer should be present during all stages of the operation and should personally remove all papers and stencils. Imperfect copies should also be treated as secret waste. 4. The Branch Officer should see that all waste papers or badly typed drafts are carefully collected and destroyed. 32. Treatment of top secret papers: A top secret paper must invariably be addressed by name to the officer for whom it is intended and should be opened only by the address or by an officer directly superior to him/her to whom addressee's papers are submitted in the normal course. In case a top secret paper is addressed to the Pr.Director of Audit, in his/her absence only the Director/Dy Director of Audit may open the cover. If the absence is for a short period and the cover is not marked 'urgent' it should wait for the Pr.Director of Audit. 2. All typing work relating to `Top secret' papers must be done in the presence of the officer concerned. The carbon paper used for typing a top secret paper should also be produced by the stenographer with the typed material and should be destroyed by the officer or kept in personal custody for use. Subsequently, the pages of Steno's note book in which dictation of top secret matter has been taken should be removed by the Officer concerned and destroyed. All copies of top secret documents including rough drafts, notes, stencils and carbon papers must be fully accounted for. 33. Movement of classified documents within the office: All classified documents unless carried by an officer by hand must be sent from one room to another in the same office in Office Manual 35 locked boxes. A movement register should be maintained by every officer for all out-going and incoming files containing classified papers. 34. Movement of papers between two departments: Top secret papers must be accompanied by a receipt slip. This slip must in each case be signed by the officer taking receipt of the paper and must be returned without delay to the officer from whom the paper is received. 2. Top secret papers must invariably be sent by insured post and secret and confidential papers by registered post acknowledgement due. 35. Custody of classified papers in an officer’s room: Classified papers should not be kept in the open in an officer's room during his/her absence. He/She must ensure that whenever he/she leaves his/her desk all classified documents are locked either in safes or boxes or in cupboards of which the keys must be with him/her. It is not sufficient to lock the door of the room concerned and leave classified documents open in the room. Economy labels should not be used on the inner cover containing top secret, secret and confidential papers but may be used as the outer covers. 36. Handing over of classified documents on vacation of the post: An officer having classified documents in his/her charge, on vacation of his/her post whether on transfer or retirement, should hand over the papers to his/her successor and obtain acknowledgement. In case no successor is posted at that time all such documents under custody should be handed over by him/her before departure to his/her immediate superior and should obtain his/her acknowledgement. 37. Supervision of security measures: Surprise checks should be made after closing hours by the Branch Officer to see whether all documents are in proper files. Strict supervision should be maintained on the issue and despatch sections to prevent mis-despatch of papers (POO 659 dated 18th January 1958). 2. A quarterly report regarding security check is sent by security officer i.e. Director/Deputy Director (Admn) to the CAG in terms of his/her secret letter no.526-NGE-1/213-70 dated 6th February 1973 (Au/Admn/II/8 Vol.II). 38. Gradation list (para 312 of MSO): A gradation list of officers and staff as on 1st March every year should be prepared for the general information of the office. The list should be forwarded in triplicate to the CAG before 15th June every year. Principal Director of Audit, Central Railway 36 CHAPTER III GENERAL OFFICE PROCEDURE 39. Office hours and attendance:- The head office and divisional offices observe 5-day week work schedule. Workshop Audit Offices follow the counterpart accounts office and observe 6day week schedule. The hours of attendance of this office will conform to those obtaining in the office of the FA&CAO/counterpart Accounts Office. The working hours should be indicated from time to time through office orders. The office hours followed at present in the head office are from 09.30 to 18.00 hours with half an hour interval for lunch from 13.30 hours to 14.00 hours. 2. In exceptional cases, however, when the work is in arrears or the interests of public service demand it, these hours may be extended. It is the duty of the Section Officer/Assistant Audit Officer to prevent accumulation of work and they are authorised to require the attendance of the staff working under them before and after the usual office hours, if necessary, to bring the work upto date. Attendance on week-ends and holidays for this purpose wherever considered necessary, should however, be ordered with due permission of the branch officer. 3. The working hours of the Class IV(Gr.D) staff are from 9.00 hrs to 18.30 hours. They should observe these duty hours strictly. Attendance of Class IV staff should be checked at 9.00 am by nominated official of the office. Lunch time for Class IV staff is from 12.30 pm to 1.00 pm. However, this lunch time may be phased as any 1/2 hour between 12.30 pm and 1.30 pm.so that all group D staff are not away at the same time. 4. The office premises situated on 4th and 6th floor of New Administrative Buildings should be opened and closed as follows:opening time closing time 8.30 am 6.30 pm. 5. Permission of Audit Officer(Admn) should be obtained by Branch Officer concerned if any section is to be kept open or any individual official has to stay late beyond 6.30 pm on any day for any official purpose. A Register should be maintained to keep a record of all those officials staying late hours. 6. Timings for Divisional Audit Offices and Branch Audit Offices situated outside Mumbai will be the same as observed by respective DRMs. (POO NO.1113 dated 14.11.1986) 40. Attendance: Members of staff should be punctual in their attendance and on arrival initial against their names in the Attendance Register provided in each section. AAuOs/SOs should close the attendance register promptly at 9.40 (10 minutes past prescribed time) and submit the register to Branch Officer after circling in red ink against the names of those who had not come by that time. Members of staff attending late should be asked to sign in the Branch Officer's room indicating the time of arrival. Branch Officers should ensure that all attendance registers reach them from respective sections well in time. Group officers should carry out surprise checks to see that the procedure of closing attendance register is followed scrupulously. 41. Late Attendance: Permission to attend office late or to leave office early should not be granted. Half a day's casual leave should be debited for every late attendance. Late attendance not exceeding one hour due to unavoidable reasons may be condoned by the AAuOs/SOs/AuOs upto two occasions in a month. A monthly review of late attendance should be made for regularisation. Disciplinary action should be taken for habitual late attendance. Office Manual 37 42. Absence from office :- Members of staff should keep their AAuOs/SOs in charge informed whenever they leave office premises. They should return to their seats as soon as work outside is over. No official should leave office earlier than closing time, without specific permission of SO/AAuO/BO. No member of staff should utilise office time to prepare for any departmental or other examination. Absence by members of staff from office without getting leave sanctioned or, in special circumstances, obtaining permission to avail themselves of leave in anticipation will tantamount to unauthorised absence entailing disciplinary action. 43. Cleanliness of office: Immediately after marking their attendance at 9.00 am the class IV staff should commence dusting and cleaning work and complete the work before office starts at 9.30 hours. The office premises and its environs should be kept neat and clean. Proper upkeep of files and other records should receive closest attention at all levels. Branch officers should ensure absolute cleanliness and orderly maintainenance of files by conducting constant inspections. 44. Holidays: This office observes the same holidays as observed by Central Railway Administration. Divisional Audit Offices should observe same office hours and holidays as observed by corresponding Divisional Raiway Manager’s offices. At the commencement of every year, list so finalised by every DRM for the year should be sent to head office for information and record. 2. A copy of list of closed/restricted holidays for ensuing calendar year should be sent to CAG (in duplicate) on or before 22nd December each year (c/f para 49 of MSO (Admn). 45.Casual leave:- (cf para 85 RAM and para (iv) of POO 1004 dated 23.3.74) Every Government Servant is entitled to a maximum of eight(8) days casual leave in a calendar year. Casual leave is treated as duty for all purposes. Casual leave cannot be claimed as a matter of right. It can be only availed of after obtaining prior sanction of competent authority, except under unavoidable circumstances such as sudden indisposition etc. Casual leave upto 5 days at a time can be sanctioned by branch officers. AAuOs/SOs can sanction casual leave upto 3 days at a time to staff working under them i.e. Sr.Auditors,Auditors,clerks,Typists,Gr.D staff (class IV) (except Group D working at HQrs office i.e. excluding workshop and stores audit Parel, Matunga and Mumbai Division) at Mumbai in respect of whom the powers will be exercised by the AAuO/SO(Admn). The officers competent to sanction casual leave can grant permission to leave HQrs. during that period of casual leave and also permit restricted holidays to staff working under them. Director/Dy Director (Admn) will sanction casual leave to Sr/ Audit Officers in Mumbai and the divisions. 2. A monthly reconciliation of attendance register with leave advices and casual leave account should be carried out in the first week of the following month. 46. Compensatory leave: (86 RAM) Whenever staff are required to work on Sundays or other public holidays at HQrs. or at out-stations during inspection, such staff may be granted compensatory leave, by the authority competent to grant casual leave. The compensatory leave granted to staff should be recorded in the casual leave register. The accumulation of compensatory leave will be not subject to any limit but such leave should normally be availed of within a month of its becoming due. Compensatory leave may be allowed to be prefixed or affixed to regular leave or casual leave. (GOI MIN.of Finance letter no.F9(17) EIIB/65 dated 27.11.65) 47. Special casual leave: The power of granting special casual leave will be exercised by the Pr.Director of Audit. 1. Special casual leave may be allowed only under the following circumstances and limits: Principal Director of Audit, Central Railway 38 a. for participation in sports events of National/International importance, when selected to represent as individual/or team, on behalf of State/Zone/district held in India or abroad, not exceeding thirty days in a calendar year b. Not exceeding 10 days in a calendar year, when participating in each tournament conducted by duly recognised bodies. 2. Special casual leave to office bearers of recognised service associations in IA&AD may be allowed upto a maximum limit of 20 days (outstation delegates 10 days/local delegates 5 days) in a calendar year, for participating in activities of association. The grant of such special casual leave is however, subject to exigencies of public service. (Authority: C&AG's letter no.(1)552-NGEI/20-60/1 dated 17.3.1960 (2). 239/N-4/54/87 dated 29.4.1988) 3. The government servants who appear in Hindi examinations and Hindi typewriting/stenography examinations may be granted special casual leave on two occasions for same examination for days on which they have to take these examinations. 4. Special casual leave to Central Government employees under Family Welfare programme can be granted in following cases: Vasectomy: Special casual leave not exceeding 5 working days is admissible to Central Govt.servants, who undergo sterilisation operation. If an employee undergoes vasectomy for second time, special casual leave not exceeding 5 working days is again admissible on production of medical certificate from prescribed medical authority, to the effect that second operation was actually performed due to failure of first operation. (MOH & Family welfare (Department of Family Welfare)s no.A600015/1/78-Fly dated 29.9.1978) Tubectomy: (a)(i) Special casual leave not exceeding 10 working days is admissible to female Central Government servants who undergo Puerperal/non-peurperal (including laparascopic method) tubectomy operation. If an employee undergoes tubectomy operation for second time, special casual leave for 10 working days is admissible on production of medical certificate from prescribed medical authority to the effect that first operation was a failure and second operation was actually performed. (a)(ii) Special casual leave not exceeding 10 working days may be granted to female govt. servants who undergo salpingectomy after Medical Termination of Pregnancy (MTP). This is not admissible when, after salpingectomy operation along with Medical Termination of Pregnancy, facility of maternity leave for six weeks under Rule 43 of CCS (leave) Rules, 1972 is availed. b) Special casual leave upto 3 days is also admissible to a male Government servant whose wife undergoes puerperal/ non-puerperal tubectomy operation including sterilization performed through laparascopy for the first time (or) the second time. c) I.U.D. One day's special casual leave is admissible to a regular non-industrial female government servant, who undergoes I.U.D insertion. d) Recanalisation: Special casual leave upto a period of 21 days or actual period of hospitalisation whichever is less, is admissible to Central Government servants who undergo recanalisation operation and are married or have less than two children, or undergo sterilisation operation for substantial reasons. 5. Special casual leave due to dislocation of traffic, natural calamities, bandh etc. If competent authority is satisfied that absence of individual concerned was entirely due to reasons beyond his/her control, e.g. due to failure of transport facilities, special casual leave may be granted to such persons who come from a distance of more than 3 miles, to Office Manual 39 their places of duty. Pr.Director of Audit has been delegated powers in such cases, which are to be reported to CAG half yearly on 10th January/July. (CAG's no.1747/NGEI/56-78 dtd 20.6.79) 6. Grant of special casual leave for participating in dancing and singing competitions organised at Regional, National and International level by Government of India/Govt.sponspored bodies. Special casual leave for participating in dancing and singing competition organised at regional,national,international level may be granted not exceeding 15 days in a calendar year. (M.of Personnel, PG&P's OM NO.28016/1/87-Estt(A) dated 9.9.87) 7. Grant of special casual leave to differently abled Central Govt. employees: Special casual leave for not more than 10(ten) days in a calendar year may be granted to differently abled central govt. servants with disabilities as defined in the persons with disabilities (Equal Opportunities, protection of rights and full participation)Act, 1955 for participating in the Conference/seminars/Training/Workshop related to Disability and development related programmes organized at National and State level agencies to be specified by the Ministry of social justice and empowerment. The period of absence in excess of 10 days is to be treated as regular leave of the kind due and admissible. Special casual leave under these orders will be allowed to be combined with regular leave as a special case. (M. of P,PG &P, Deptt. Of P&Trg’s O.M. No:28016/02/2007-Estt(A) dt.14.11.07) 48. Restricted holidays: Every Government servant is entitled to avail himself of two restricted holidays from out of the list of Restricted Holidays for the year. Restricted Holiday can be combined with other holidays, casual leave and regular leave. 49. Passes and privilege ticket orders to Railway Audit staff: Officers including IA&AS officers and other members of staff, working in Railway Audit Department are entitled to passes and PTOsat scales prescribed from time to time for railway employees of corresponding status. Privilege passes and PTOs may be issued to IA&AS officers proceeding on leave for more than four months provided they have completed not less than one year service and CAG certifies that the officer is likely to return to Railway Branch on expiry of leave. For periods of leave not exceeding four months including leave preparatory to retirement, there is no objection to issue of passes before or during leave period to be availed of leave, joining time immediately following the leave. However, this privilege cannot be granted either before or during leave after it becomes known that on expiry of leave, the officer is being posted out of Railways.(Railway Board's letter No.E(G)58 PS5-20/1 dt.14.4.60 and CAG's endt.no.512RAI/T-17-2/63 dated 16.2.63. 2. Passes to widows/widowers of Railway Audit staff-Widow/widower of Railway Audit employee is eligible for passes as per scales laid down in lieu of surrender of two sets of PTOs each year by the deceased employee during his/her service in Railway Audit. The scheme came into effect from 1.1.89. Railway Audit staff inducted to IA&AS will be eligible for this benefit. (Authority Railway Board's no. E(w)85-PS5-8/2 dated 23.2.89)received under ADAI(R) letterno.165-RAIII/T/1261/87 dated 6.4.89) (Railway Board's letter no E (G) 58 PS5-20/1 dated 14.4.60 and CAG;s endt.no.512,.no.512RAI/T-17-2/63 dated 16.2.63) Principal Director of Audit, Central Railway 40 50. Passes and Privilege Ticket orders to non-railway deputationists: Non-railway officers and staff on deputation to Railway Audit Offices are eligible for passes and PTOs as admissible to serving Railway employees from time to time provided period of deputation is expected to last for one year or more. (Railway Board's letter no.E (G)59 PS5-15/1 dt.18.5.60 and CAGs letter no.781-RAII-T-1723/58 dated 3.6.60) 2. Officers and staff of Railway Audit Department on deputation to Non-railway offices are eligible for privilege passes and PTOs as admissible in their parent office for the initial period of four years. Thereafter, they are entitled to only complimentary passes based on their length of service on scale applicable to retired railway employees. 3. Staff/officers of Audit department who get themselves permanently absorbed in Public Sector undertakings and in other departments are entitled to post retirement passes as admissible to Railway staff only on their final retirement as per extant rules.(ADAI(R)no.572-RAIV/I-17/12/35 dated 17.7.88) 4. Railway Audit staff are not entitled to the following concessions which are admissible to Railway servants only: i. Passes on first appointment ii.Special passes to office bearers of staff association (Railway Board's letter no.E(G)58 PS-5-20/1 dated 6.6.61) 51. Travelling Allowance: Officers and staff of Railway Audit Department are governed by Railway Travelling Allowance Rules. This also applies to Pr.Director of Audit/Accountant General holding additional charge of post of Pr.Director of Audit for his/her tours as Pr.Director of Audit (Railway). 2. Non-Railway deputationists to Railway Audit Offices are governed by Railway Travelling Allowance rules during their term of deputation. Deputation allowance is also reckoned as `Pay' for determining the grade of employee. Officers and staff of Railway Audit department proceeding on or returning from deputation are governed by Travelling Allowance rules applicable to them while on deputation. 3. IA&AD officers retiring from posts in Railway Audit Branch like all other Railways Audit Personnel will be eligible for facilities under Railway Audit rules only(cf para 1553 of Indian Railway Establishment Manual (Second Edition) and not under Central Government TA rules . (Jt.Director Railways letter no.,1978-10-RAI/4-1/73 dated NIL) 52. Medical Attendance: (see para 18 of Rly,Audit Manual) Officers and staff are governed by Central Services (Medical Attendance) Rules 1944 as amended from time to time. In areas where Central Government Health Scheme is functioning, officers and staff residing in those areas are governed by this scheme. Officers and staff working in DivisionalAudit offices are permitted to avail of Railway Medical facilities. 53. Staff Association: Recognition to staff associations is granted by CAG of India. Representations from staff Associations addressed to higher authorities may not be forwarded if: i. They contain disrespectful or improper language ii. The representation is on matters of local interest on which Pr.Director of Audit can take a decision Office Manual 41 iii. The representation merely repeats old demands/grievances rejected or not accepted or on which definite policy decision exists. 2. Contents of telegraphic representations should be approved by the Head of the office. Recognised staff Associations may be allowed to hold meetings within office premises. 3. Display of notices in the office premises by Association requires prior permission, except when the notifications pertain to: a. b. c. d. Holding of meetings Elections and results thereof Statements of accounts of association' Reminders to members about their dues, 54. Inspection of this office by the Director of Inspection: Director of Inspection attached to CAG's office conducts inspection of this office periodically, generally once in three years. The inspection generally consists in examining office administration and other procedural aspects. ECPA section acts as a liaison between this office and the Director of inspection party(c/f para 254 of Chapter VIII on ECPA section) 55. Personal copies of Codes/Manuals to gazetted officers/AAuOs/SOs. Para 88 (ii) of RAM . The following is the list of books that may be supplied as personal copies to GOs and SOs. 1. An introduction to Indian Government Accounts and Audit 2. Indian Railway Code for Establishment volumes I and II. 3. Indian Railway Code for the Engineering Department. 4. Indian Railway Code for the Stores Department.Vol.I & Vol.II 5. Indian Railway Code for the Traffic Department 6. Indian Railway Code for the Mechanical Department 7. Indian Railway Code for the Accounts Department vol.I and II. 8. Indian Railway Finance Code Vol. I and II 9. P&T compilation of Fundamental and Supplementary Rules 10. Railway Audit Manual 11. Office Manual. 56. Staff welfare: Director/Deputy Director (Admn) has been nominated as Welfare Officer for staff working in Mumbai. Individual grievances may be got redressed through Director/Dy Director who should grant interview for this purpose if sought for on every Monday between 5 and 5.30 pm Divisional Audit Officers should act as local Welfare Officer for staff working in respective divisions. 57. Inward dak: Excepting top secret, secret and confidential letters, all letters on receipt are date stamped in the Receipt section. The letters received from CAG, Railway Board, Government of India, State Govts. and sanctions of General Manager and General telegrams are sorted out and kept in pads. These pads are circulated to the Pr.Director of Audit and Director/Dy Directors.,and other officers. 2 Classification of inward dak: The inward dak should be classified as follows: A dak All communications/letters etc. received directly from the offices of CAG, Railway Board and Government of India, Ministries excepting Railway Board's sanction endorsed by CAG's office. Principal Director of Audit, Central Railway 42 B dak: All sanctions of Railway Board endorsed by CAG's office, all communications received from other Directors of Audit,Heads of Central Govt. and State Govt.Offices and Departments, Heads of Department of Railway Administration, Correspondence relating to Draft paragraphs, part I Audit Note/part I Inspection Reports, Special letters and representation from staff. C dak: All other communications/letters/documents. 3. Inward dak registers will be maintained by all Headquarters sections including workshop and Stores Audit section,Parel, Matunga and Traffic audit section(Coaching) under all the three categories mentioned above. In Divisions and sections at outstations all letters received will be categorised as C dak only. 4. Sr Personal Assistant to Pr.Director of Audit and Stenographer to Director/Dy Director will maintain separate registers for DO letter and confidential letters addressed to Pr.Director/Director/Dy Director and such letters when made over to section concerned will be categorised as A dak and entered in sectional A dak registers. 58. Registration of Inward letters: All letters received in this office after circulation amongst Pr.Director of Audit/Director/Dy Director/Audit Officer(Admn) will be classified as indicated in para 58 above. Marking of letters to concerned sections will be done by AAuO/SO, Administration section who will pass them on to Receipt section on the same day of receipt. 2. In receipt section a Central Register for all `A' dak letters will be maintained. All A dak letters will be first indexed in Central A dak register and these A dak letters and also B and C dak letters will then be entered in respective sectional A,B,C dak registers on the same day of receipt and sent to Branch officers of the section immediately. Sectional heads should ensure that letters are promptly received by the Section and dak registers are released in time to receipt section for entering the dak received on the next day. 3. Procedure detailed above will apply mutatis-mutandis to C dak letters received by Divns and sections at outstations. 59. Disposal of letters: On receipt of Inward register with letters, Section Officer/Assistant Audit Officer should go through the contents of letters and mark them to concerned auditor for disposal. The auditor should acknowledge letters received by him/her in the Inward register. The AAuo/SO should ensure that staff receive letters promptly and letters are not allowed to accumulate. Reference to file in which the letter is filed should be given against each entry in the Inward Registers with dated initials of the auditor dealing with those letters. 2. The auditor entrusted with disposal of letters should file letters in proper file, give page number and submit disposal on `Notes' portion of file. All references to letters mentioned in letter under disposal should be connected and page references should be quoted with file number etc (references such as flag A F/B should be avoided). Office notes should make full reference to previous notes, letters/orders. 3. While putting up disposals to Sr./ Audit Officers/Director/Dy Director/Pr.Director of Audit the following instructions should be borne in mind: Office Manual 43 i. No notings should be done on the body of letters but should be on a separate note sheet filed on notes portion of relevant file. ii. All notes/drafts should be signed Auditor/AAuO/SO.AuO/Director/Dy Director. in full with dates by iii. All notes going upto Pr.Director of Audit should be typed or presented in a neat legible manuscript avoiding conflicting opinions at different levels. iv. Marking of notes to Officers, should be in margin space and not in note side portion itself. v. The name of AAuO/SO and that of the Branch officer should be shown duly stamped (on left hand side on top of the note) for which stamps have been supplied to Sections. 4.`Time Limit' for disposal of letter will be as under: a. A Dak and B dak.One week i.e.letters received from Monday to Saturday of a particular week shold be disposed of by Saturday of the immediate following week. Note:A dak letter should be treated as disposed of only after issue of final reply or filed under orders of Branch Officers. b. C dak for headquarters sections including W&S Parel, Matunga & T.Coaching: two weeks i.e. letters received from Monday to Saturday of a week shold be disposed of by Saturday of the second following week. c. for divisions & sections at outstations: one week i.e. letters received from Monday to Saturday of a particular week should be disposed of by Saturday of the immediate following week. d. A, B, C dak registers will be submitted by all sections of Headquarters and at outstations and also divisions to the respective Branch Officers every Monday giving the position of outstandings, as on the previous Saturday as per the time limits indicated above. e. PA to Pr.Director of audit and Stenographer to Director/Dy Director will submit the registers maintained by them to Pr.Director/Director/Dy Director every Monday showing the outstanding position. (POO no.1054 of 30.1.79 1057 of 21.3.79). 60. Drafting of letters: While putting up drafts for approval the following instructions should be observed. 1. 2. 3. The case or file number should invariably be given on the top. Subject should be given as heading in the draft. If there has been previous correspondence on the subject, the draft should, if necessary, commence with a reference thereto. Principal Director of Audit, Central Railway 44 4. Sufficient margin space should be left(half margin). The spacing of the lines should be adequate as to admit of any corrections being made in the draft Paragraphs in the draft should be numbered Both sides of the paper should be used Only recognised abbreviations should be used Enclosures to the letter should be indicated on the left hand side at the end of the draft. The terms such as ‘(as above)’ should be avoided. The draft should be signed in full with date. 5. 6. 7. 8. 9. 61. Submission of fair copies to Sr./ Audit Officers/Director/Dy Directors/Pr.Director of Audit. The following instructions should be followed: 1. 2. The letters should be neatly typed. The typist/Steno typing the letter should type his/her initials in small letters at the left hand bottom corner of the letter The initialling in token of comparison should be done on the clean office copy only and not on fair copy If there are endorsements and subsequent copies are not visible on the top copy, a small slip should be placed on the top paper indicating the number of endorsements to be signed. All enclosure should be attested Copies of letters enclosed to letter to CAG should be attested by Section Officer/Assistant Audit Officer as `True Copy' On office copy of letter addressed to CAG, persons comparing the letter should put their signatures (e.g. Read by ............ and compared by...............) Papers sent for Pr.Director of Audit's signature should not be bent, twisted nor folded Signature pads should be used for sending fair copies for signature. 3. 4. 5. 6. 7. 8. 9. 62. Duties of PS/ PA / Stenographers: The general distribution of work among PS & Stenographers in this office is as follows: i. PS(Gr.B) a. Attending phone calls of Pr.Director of Audit . b. Maintenance of CRs in respect of Sr.AuOs/AuOs. c. Maintenance and monitoring CAG’s dak and submission of progress report to Pr.D.A every week. d. Work relating to Tour programme, leave, provident fund, travelling allowance, maintenance of personal file and service register and other related work of Pr.D.A. e. Verification of log book and overtime bills of staff car driver. f. Any other work allotted by Pr.D.A. ii. PA to Dy. Director a. Attending phone calls of Dy. Director. b. Checking of e-mails, sending and receiving. c. Dictation and typing work relating to panel size, DPC, foreign assignment of officers and staff and cash awards. d. Maintenance of ACRs in respect of AAuOs/SOs/Supervisor/Welfare Assistant. e. Work relating to examinations and ACP. f. Submission of returns/registers pertaining to the folio. Office Manual 45 g. Any other work allotted by Dy. Director. iii. Stenographer Gr.I a. To report to Sr.AuO (Report). b. To attend to the work of Sr.AuOs (ECPA), COR and Sr.AuO(Admn) as and when entrusted by them. c. Sending and receiving fax (P&T & Railway). d. To attend to the work of Pr. D.A in the absence of PS. iv. Stenographer Gr.II a. To attend to the dictation and typing work of Sr. AuO(Admn). b. Custody and maintenance of ACRs in respect of Sr.Auditors/Auditors, stenos, clerk/typists,staff car driver and record keepers. c. Work relating to deputation, moveable and immo vable property declaration, verification of 50/55 years of age and 30 years of service to the staff. d. Attend to the work of Dy.Director in absence of PA to Dy.Director of Audit. e. Submission of registers/returns pertaining to the folio. 63. Submission of files to Dy Director/ Director/Pr.Director of Audit. All files to be put up to Dy Director/ Director/Pr.Director of Audit should be handed over to Personal Assistant who should acknowledge receipt of files. Personal Assistant should put up files to Pr.Director of Audit/Director/Dy Director and watch their return to sections. Confidential files should be sent in confidential pads. These should be handled by staff entrusted with custody of these files. If files are maintained by the AAuOs/SOs they should personally take them to Branch Officers. Confidential files which are to be put up to Director/Dy Director/Pr.Director of Audit should be handed over by AAuO/SO to stenographers. 64. Signing of letters: Communications of following nature should issue only with prior approval of Pr.Director of Audit: 1. 2. 3. a. b. c. 1. Letters implying dissatisfaction or censure letters to government (either Union or state) letters to the FA&CAO of Railway or any other office challenging decisions or orders questioning validity of any sanctions otherwise than or merely technical grounds, and writing off or waiving recovery of overpayments letters to CAG of India, General Manager of the Railway or outside officers except on purely routine matters Principal Director of Audit, Central Railway 46 2. Such communications should ordinarily be signed by Pr.Director of Audit himself/herself. In his/her absence from headquarters letters referred to at items (i),(ii) and (iii) above may be signed by Director/Dy Director but they should bear sufficient indication that they are being issued under the direction of Pr.Director of Audit. However, in respect of communication referred to at item (iv) above, Audit Officer may sign communication for Pr.Director of Audit which ordinarily means that Pr.Director of Audit himself/herself has passed draft or has issued unmistakably explicit orders on the subject. Where drafts of letters have not been approved by Pr.Director of Audit but letters have been issued by Director/Dy Director or next Senior Officer for Pr.Director of Audit due to absence of Pr.Director of Audit from headquarters such letters should be submitted to Pr.Director of Audit for perusal on his/her return. 3. All letters, returns and statements forwarded by Divisional Audit Officer/Branch Officer may be signed by the Divisional Audit Officer/Branch Sr/Audit Officer. When Divisional Audit Officer is away from headquarters on tour or leave, letters, returns etc., may be issued under the signature of AAuO/SO if drafts were approved by Sr./ Audit Officer/Branch Officer. AAuO/SO are authorised to file `nil’ reports and interim replies under their own signature. 65. Despatch of letters: All letters to be despatched should be registered in outward register after they have been signed by the officer concerned. These should be numbered serially for each calendar year. The serial number should be affixed to letter number on both fair and office copies and date of despatch recorded on office copy of the letter. The subject matter of the letter should be given in brief and intelligible way in outward (despatch) register. The despatch clerk should check that the papers have been signed wherever necessary and that all enclosures are complete and are indicated in the letter itself. They should then be placed in covers for despatch. Care should be taken to remove all flags and to address and note the contents outside each cover and stamp the envelopes adequately. All letters intended for the same office should be despatched in one cover. Letters for local delivery to be sent by messenger should be entered in a peon book. In the case of letters not typed on printed letter forms, office stamp should be affixed before despatch. Telegrams issued should also be registered but the entry therefor should be made in red ink. Secret and confidential letters despatched should be recorded in a separate register maintained for the purpose by stenographers. These letters should be placed in a cover sealed with the personal seal of the officer concerned and marked `confidential' or `secret'. This sealed cover should be put in another cover and should be sealed with office seal. This outer cover should not be marked `secret' or confidential'. Office copies of letters despatched bearing despatch stamp and dated initials of the stenographer should be returned to the section concerned. 2. 3. Demi-official letters (DO) should be delivered to the stenographers of the officers. Bulky parcels and insured articles should be sent invariably in cloth lined cover. (CAG's letter no.2432-NGEIII/9-67 dtd,.20.11.67) 4. Service Registers when sent by post should always be insured. 5. Papers to be despatched to Divl/Branch Audit offices should be listed by despatch section in a `transit memo' or dak slip' prepared in triplicate. Two copies of the memo should be sent to Divisional/Branch audit offices with papers. The divisional/branch audit offices should return one copy in acknowledgement, which should be preserved along with the original copy. The divl/branch audit offices should also follow the same procedure. Letters to be sent to the Railway offices outside headquarters and to Divl/branch offices should be sent under railway free service way bills as far as possible. In the case of letters sent by registered post, postal receipt should be pasted in the register of Stamp Account. 66. Postage stamps : Office Manual 47 1. A register should be maintained by Despatch Clerk to show receipts and issues of Postage Stamps. This register should be checked and balance verified and the fact of such check and verification recorded by SO/Assistant Superintendent (Admn) on the first working day of every month and on each occasion an indent for stamp is submitted to Sr/AuO (Admn). This register should be submitted to Sr/AuO (Admn)on the 1st of every month for information. Stamps required by Divisional and Branch Offices should be obtained from Headquarters office. 67. Office Imprest: An imprest of Rs.1000/- (Rs.one thousand only) has been sanctioned for the headquarters office. The cash should be in the custody of the officer-in-charge of administration section. Sanction of Pr.Director of Audit/Director of Audit should be obtained before any expenditure is incurred except in those cases where powers have been delegated to Sr/AuO (Admn). The SO/AAuO should make entry in the Imprest cash book and obtain initials of the officer-incharge of Administration Section. 2. Entries in imprest cash book should be copied in the prescribed form and sent to FA&CAO along with vouchers periodically (with certificate of having incurred expenditure, if no voucher is available) for recoupment. 3. Divisional Audit Officers and Sr/AuOs have been sanctioned imprest as shown below to meet petty payments: 1. SrDAuO, Central Railway, Mumbai 150 2. SrDAuO, Central Railway, Bhusawal 200 3. SrDAuO Central Railway, Nagpur 200 4. SrAuO(RE) Central Railway, Nagpur 100 5. AuO(W&S) Central Railway, Jhansi 150 6. SrDAuO Central Railway, Solapur 200 7. SrDAuO, Central Railway, Jhansi 200 8. SrDAuO, Central Railway, Jabalpur 200 9. SrDAuO, Central Railway, Bhopal 200 10. SrAuO(C) Central Railway, Bhusawal 150 11. SrAuO(RE) Central Railway, Bhopal 150 12. SrAuO(C) Central Railway, PA 175 13. SrAuO(C) Central Railway, Jhansi 100 14. SrAuO(W&S) Central Railway, Matunga 150 15. SrAuO(W&S) Central Railway, Parel 150 16. AuO (KRCL) 100 17. SrAuO(POH) Bhusawal 100 18. SrAuO(THQ & TCog) 100 19. SrAuO(MTP) 100 20. AuO(IHQ) 100 Principal Director of Audit, Central Railway 48 4. The instructions contained in Rule 90 GF Rules and the Procedure Office Orders issued from time to time should be borne in mind. 5. An yearly certificate on 1st April each year should be furnished by all imprest holders to Accounts/Audit officer acknowledging the amount due from and accountable by himself/herself as on 31st March preceding. (Authority: CAG's letters no.3020-NGEI/16-79 dated 12.10.79,2249-NGEI/38-80 II of July 1981 2273-NI/52-84 dated 23.11.1984. c.s.149 dated 5.12.89 POO nos.1068 dated 28.11.79 & SOO no.47 dated 3.9.1992). 68. Contingent Expenditure: Powers to incur contingent expenditure delegated to the Director/Dy. Director, Sr/ Audit Officer (Admn) are given in the annexures to this manual. 2. As each contingent voucher is received, it should be verified and amount thereof noted in Contingent Register. An endorsement of acceptance should be made on that voucher and a pay order endorsed thereon if it is to be paid in cash. Sr/ Audit Officer should initial in each case the relevant entry in expenditure register which should exhibit contingent expenditureError! Bookmark not defined. under the following detailed heads: 1. 2. 3. 4. 5. 6. 7. 8. 9. Postage and telegraph charges Rent rates and taxes Book and periodicals Printing of stationery forms Purchase and repairs of office furniture Liveries to class IV (Gr.D) Telephones' Miscellaneous office expenses like Railway freight, cartage, conveyance charges etc. Electricity, hire of fans etc. 69. Maintenance of files: For maintenance of files in all sections the following instructions should be borne in mind: A file is not merely a collection of papers. It is an aid to disposal in as much as in the correspondence portion, it collects all papers on the same subject and in the notes portion gives a chronology of thinking on the subject. Therefore, unnecessary matter should not be allowed to get into these portions and both portions should be clearly separated and numbered. The correspondence portion should consist of only letters received/issued. The placement of papers in the correspondence portion should be upward. All reference in correspondence and notes portions should be serially numbered and also page numbered eg. serial no.1 page 1(c). 2. Where a particular communication calls for a reply, if points for reply are clear, a draft should be put up right away with all previous references indicated. Such drafts should be written half margin, references being given in margin wherever necessary. It is not necessary to reproduce the PUC as well as briefs in notes portion on the disposal. 3. Where line of action is not clear to the section, it is preferable to study various alternatives by making reference to decisions in earlier notes or letter and finally submit to the officer so that a clear decision could be given by the officer, in such cases it is not necessary for the section to put up drafts. The drafts should be dictated by the dealing officer on the basis of alternatives chosen by him/her. 4. Notes portion of the file should be one continuous document, with notes and orders interspersed with dockets of receipts and issues. A new page should not be opened whenever fresh noting starts. When there is a series of notes on discussions running into several pages a running summary on facts and opinions should be prepared and kept in the notes portion and further discussions should use only the running summary as the starting point. Office Manual 49 5. As far as possible one agreed note should be put up at least on issues which are going upto Director/Dy Director/Pr.Director of Audit after discussion with AAuO/SO so that conflicting opinions are not recorded. 6. In any case after AAuO/SO's note, Branch Officer should briefly say whether he/she agrees with the notes of AAuO/SO and if not on what points he/she does not agree. 7. Files should not be allowed to grow up in size. Whenever clean office copies are prepared, original drafts should be removed and kept in a `key' file. To avoid unnecessary noting and drafting cases should always be discussed by officers and Section Officer/Assistant Audit Officers before drafts are put up. It should always be seen that clean typed drafts are put up even at the first instance. AAuo/SO and dealing Auditor should sign in full at the left hand bottom side of notes and drafts. The Officer should sign at the right side of notes. He/She should also give his/her name below signature. Names of AAuO/SO and Branch Officers should prominently be indicated on top left hand portion of notes sheet. 8. Notes portion should also be serially numbered and all papers in the correspondence should be docketed. All letters received should be docketed in black ink and issues in red ink. Docketing should be done in the following form: serial no.1 serial no.2 Receipt from................ Issued to ................. 9. Where more than one section has to be consulted in a case the file should be sent to the other section under U.O. Where, however, information has to be collected from a number of parties, this should be done through sectional memos which are to be kept in files. 10. The subject matter of the file should be shown very clearly. The number of the file should also be clearly given as in the sample given below: Major head 1. Railway Audit Report Minor Head 1. Orders issued by the CAG 2. Draft para for the Railway audit report 3. Misc.matters connected with the audit report and so on. 11. During internal inspection of sections ECPA section should see that these instructions are followed. 12. Each section should maintain a manuscript register of files indicating (a) the date of opening b) number of the file c) subject d) date of closure and e) due date of destruction. Register of files should be kept as a permanent record. 13. When a file is closed clear remarks should be given on the cover of the file to indicate the number of years for which the file should be preserved in accordance with the period of preservation indicated in Appendix I to the Railway Audit Manual or other orders issued from time to time. Necessary entry in Register of files should also be made. 70. Maintenance of records: Files should be neatly arranged in cupboards or racks according to major and minor heads, current files being segregated from others not frequently required. Section Officer/Assistant Audit Officers should keep a close supervision over work of Auditors and general upkeep of records, by periodically overhauling the tables of Auditors. 71. Weeding and destruction of records: A review of records for the purpose of destruction should be conducted by each of the sections and divisions annually and furnish a certificate to Administration section by 30th of April each year to the effect that all old records which are due for destruction have been so marked for necessary action and sent to Record section. As far Principal Director of Audit, Central Railway 50 as divisions and branch offices are concerned, records need not be sent to Head office and destruction should be arranged locally in the same manner as is being done by Railway offices after obtaining approval of Director/Deputy Director (Admn) or Pr.DA wherever necessary. Records section should arrange for despatch of records marked for destruction to COS (CO) Central Railway once in a year or more often depending on the size of accumulation. Destruction of secret and confidential records should not be entrusted to records section. 2. Period of preservation of various records maintained in this office is given in Appendix II to Railway Audit Manual. Orders of Pr.DA should be obtained for destruction of such of those record for which specific period of preservation has not been approved and included in Railway Audit Manual. A list of such records is given as Annexure 7 to this manual. 3. Period of preservation should be reckoned from the end of financial year in which the file or register was closed. For example, if a file is closed in say December 1994 and it is required to be preserved for three years, the period of three years should be reckoned from 1st April 1995. 72. Office libraries: There is a main office library in the headquarters office. This library is maintained by the Record keeper nominated by Sr/AuO (Admn). Similarly, there is a library in each Divisional Audit Office maintained by a clerk/typist. In addition there is the “PDA’s library” of books on general matters which is maintained by SrPA attached to Pr.Director of Audit. All sections in Headquarters have their own libraries maintained by an Auditor working in the section. The libraries should consist of Railway/civil codes and manuals which are required for day to day reference. Books in stock on 31st March every year in the office library and PDA’s library should be verified by a Section Officer/Assistant Audit Officer nominated for the purpose by Pr.Director of audit. Result of verification should be submitted to Pr.Director of audit. Certificates of verification of books in libraries at divisions and sections should be submitted to Divisional/Branch Sr/ Audit Officer. Books from these libraries including Pr.Director of Audit's library are available for issue to candidates preparing for Departmental Examinations. Books so issued should be noted in a Register of Books issued. 2. When codes and manuals etc. are found missing during such verification immediate action should be taken to fix responsibility for loss and orders of Pr.Director of Audit obtained for recovery/write off. In case of loss of any code book double the price should be recovered from the person responsible. (DRA's letter no.G7-2/51 dt. 23.2.52 forwarding CAG's letter no.A81NGE II/452-51 dated 13.2.52). 73. Furniture: Furniture required for general use in the office such as almirahs, racks etc. may be provided according to requirements of each office. Supply of furniture for use of individual staff or officer is governed by scale laid down by CAG of India. 2. Furniture required for office may be purchased locally subject to availability of funds. In regard to purchase of steel cupboards, safes, chairs, tables etc advantage of rate-contracts entered into by DGS&D with manufacturers of repute should be taken. 74. Dead stock register: A register of dead stock items is maintained centrally by administration section in respect of all sections situated on the 4th floor of the New Administrative Bldg. Sections situated outside the 4th floor viz.Construction Audit, Coaching audit, workshop audit etc. and divisional audit offices should maintain separate dead stock registers. Annual verification of dead stock at headquarters (4th floor) is done by a Section Officer/Assistant Audit Officer nominated by Pr.Director of Audit. Report of similar verification conducted by other Sections and Divisional Offices should be sent to administration for record. The divisional or branch officer may nominate a Section Officer/Assistant Audit Officer for such verification. 75. Supply of liveries to Gr.D staff: Issue of uniforms to all Group D staff of this office including those in divisions and branch offices devolves on administration section. These are to be issued to staff according to scale laid down in Dress Regulation of Central Railway and are the property of this office. Office Manual 51 2. Group D staff should wear their uniforms during office hours and maintain them neat and clean. A parade of all Gr.D staff should be held every Monday at 9.30 am and their uniform and turn-out should be inspected by Sr/ Audit Officer (Admn) and Section Officer/Assistant Audit Officer(Admn). Surprise check in this connection should also be conducted on any other day of the week. 3. Annual indent for uniforms for winter and summer garments should be placed on the DCOS(General) Currey Road, Mumbai according to programme fixed by COS on 15th April for divisions and 1st May for Headquarters. 4. A register should be maintained in Administration section to record receipt and issue of each item of uniform and also uniform supplied to each member of staff separately. This register should be submitted to Branch Officer on 5th of April, July, October and January. 76. Supply of stationery and forms: Quarterly indents should be placed on Superintendent, Printing & Stationery, Central Railway, Byculla for the requirement of stationery articles of this office including divisions. Stationery items should be distributed to various sections monthly on the basis of the scale prescribed for various items. A Register should be maintained in the Administration.section to record the receipt and issue of each item of stationery. Annual verification of these items in stock should be carried out by a Section Officer/Assistant Audit Officer nominated for the purpose. The indents should be sent on 15th of June, September, December and March. 2. Local purchase of stationery and forms should be resorted to only in emergent circumstances. 77. Miscellaneous Cash Register: A register showing receipts and disposal of miscellaneous cash in this office should be maintained in the administration section in accordance with the instructions issued on the subject by the FA&CAO from time to time. 78. Telephones: This office is provided with both P&T and railway telephones. Private calls should not be made on the P&T telephone except when urgently required. Necessary entry of such calls should be made in the register maintained by administration section in respect of P&T phone provided in that section. 2. Trunk calls can be made on private account after obtaining prior permission of Sr/AuO (Admn). A record of such calls should be kept in the register prescribed for the purpose. Charges for private trunk calls should be deposited by the staff concerned as soon as telephone bill is received. 3. The administration section should send a list of P&T phones installed in the offices and residence of officers quarterly to CAG, so as to reach his/her office by 8th of January/April/July./October or whenever such information is called for by that office. 4. Personal Assistant(s) should keep telephone directories upto date. 79. Office orders and office order register: Appointments, transfers, promotions, leave and other personal matters of members of staff are notified through staff office order(SOO). These SOOs should be entered in the register maintained in administration section and should be serially numbered. A separate register should be maintained for office orders issued in connection with appointments, transfers etc. of gazetted officers. 80. Custody of duplicate keys: duplicate keys of tables, cupboards etc. in use by the gazetted officers should be kept in the custody of the Sr/ Audit Officer (Admn). In the event of loss of a key the official concerned should intimate the loss to the Sr/AuO (Admn). The duplicate key should be issued after obtaining the signature of the official in the register maintained for the purpose. When replacements for keys lost are obtained, the cost of replacement should be recovered from the official responsible for the loss of original key. Principal Director of Audit, Central Railway 52 81. Address of office staff: The residential addresses of all members of this office should be recorded in a register maintained by administration section. Any change should be promptly intimated to this section. The divn/branch offices outside Mumbai should also maintain a similar register. 82. Smoking: Smoking in office premises is prohibited. AAuOs/SOs in charge of section should see that this is strictly complied with. 83. Gossiping and loitering: Gossiping and loitering in corridors is strictly prohibited. 84. Taking papers home by staff: Under no circumstances should office papers including vouchers be taken home by SOs and Auditors from this office. This ban is absolute in so far as their removal by non-gazetted staff is concerned. 85. Admission to outsiders: No outsider should be allowed to enter office whether during or out of office hours except on official business or with the permission of the Branch Officer/AAuO /SO concerned which should be rare. 86. Purchase of newspapers and periodicals: Newspapers and periodicals should be submitted to the Pr.Director of Audit on receipt in the office. Pr.Director of Audit will go through these and mark any important and interesting material affecting the railways. The ECPA section should take out extract of these and pass on to concerned section for examination and submission to Pr.Director of audit, if necessary. The original marked cutting from the papers should be pasted on a paper and filed neatly indicating the section to which this has been sent. 2. Newspaper and periodicals should be circulated among gazetted officers and then passed on to record section for record. Office Manual 53 CHAPTER IV ADMINISTRATION INCLUDING HINDI CELL GENERAL- The instructions contained in the MSO (Admn) and Chapter III to VII of RAM should be borne in mind. 87. Duties: The Administration Section is responsible for dealing with all Administrative and Establishment matters pertaining to the office as a whole. The important functions and duties are indicated below: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Recruitment, appointment, transfers, promotions, deputation, grant of leave to staff and Officers. Office accommodation: procurement and up keep of furniture and office machines. Departmental Confirmatory Examination: Section Officer/ Assistant Audit Officers' Grade Examination, Revenue Audit Examination and other departmental examinations, Training of Staff etc. Maintenance of Service records and Leave Accounts of Officers and Staff. Preparation of bills for claims of staff and Officers and other bills. Preparation of Pension papers. Maintenance of Recoveries Register. Preparation and submission of Budget Estimates, Control Statement, other returns due to the CAG and Principal Director of Audit, Eastern Railway (Audit Officer for this office) and other offices. Preparation and Submission of Staff proposals. Maintenance of Registers of Expenditure and their reconciliation. Preparation of Appropriation Accounts relating to the Accounts of this office. Watching implementation of Official Language (Hindi) and its progress in day to day work. Indenting and supplying of Stationery and liveries. General Maintenance and upkeep of office library. 2. The Asstt.Audit Officer/Section Officer (Administration) is assisted in the discharge of his/her duties by an SO/Assistant Superintendent who is entrusted with the following items of work: a) b) c) d) Preparation of Pay bills of staff including those in Divisional and Branch Offices Indenting and Distribution of Stationery, liveries to Class IV and furniture etc. Deployment of Group D (Class IV) staff and closing of their attendance Leave applications of Non-Gazetted staff where substitutes are not asked for and maintenance of Service Books and leave accounts of these staff. e) General upkeep and maintenance of office Only a Sr Auditor should be posted as Assistant superintendent (CAG's letter no.614-NGE 1/39-72, dated 10.3.1972) 88. Preparation of Pay Bills: Preparation of Pay Bills of staff both Gazetted and nonGazetted of this office is done on computer with effect from April 1977. However scale check statement and allocation statements are prepared manually. 2. Payment to Group A officers: The pay and allowances including TA, Medical Reimbursement, Honorarium etc. of Group A Officers of this Office are drawn by the office and bills sent to Pay and Accounts Officer (Audit), Office of Accountant General (A&E) Maharashtra, Mumbai in respect of Group A Officers at Mumbai. The Service Registers and Leave accounts of Group A officers are maintained by this office. On transfer of an officer, this Principal Director of Audit, Central Railway 54 office will issue Last Pay Certificate to the drawing and disbursing officer of the new office and also send service registers duly completed. Pay book supplied to Group A officers will be completed by the drawing officer every month. 3. Pension papers of retiring Group A officers working in this office shall be prepared by this office and sent to the Pay and Accounts officer (PAO) concerned for verification and issuing pension payment order/gratuity payment order. (C&AG's no.363-TA I/197-82 dated 23.3.1982) 4. The following time table should be followed for submission of monthly Pay roll data, Check of listings, preparation and submission of pay-bills etc.to the EDP centre (Electronic Data Processing Centre). i. ii. iii. iv. v. vi. vii. Submission of ARD (Addition, Revision and Deletion)/Add Master data to the EDP Centre for carrying out charges to Master files (12th of the month). Making available the listings of ARD/Master Data to this office for check by the EDP Centre (13th of the month) Return of listings duly checked to EDP Centre (14th of the month) Submission of Final ARD and monthly charge data to EDP Centre (15th of the month) Making available the listing change data for check and return (16th of the month) Pay bills, Summary and deduction statements to be handed over to this office by the EDP Centre (20th of the month) Pay bills to be submitted to the Accounts Office concerned (22nd of the month) 23rd Divisional Accounts Offices 5. If Sunday/Holiday falls on any of the above dates, arrangements should be made to submit the date/check the listings on previous working day. (FA&CAO, Central Railway's letter no.AC.3608/EDPM Pay bills/Audit, dated 2nd May 1977) 89. Abstracts of Attendance: The Branch/Divisional Sr./ Audit Officers are required to send to Administration Section by 16th of each month abstract of attendance of all non-Gazetted staff in that Branch/Division for the period from 15th of the previous month to 14th of the current month. Abstract of attendance forms the basis for preparation of pay bills.For Sections situated in main office, administration Section should consult the attendance registers at the time of preparation of pay bills. 90. Signing of pay bills: (para 90 of RAM). Specimen signature of the officer authorised to sign bills Audit Officer (Administration) should be sent to FA & CAO. Whenever there is a change in incumbency Specimen Signature of the officer taking over charge as Sr/ Audit Officer (Admn) should be sent to FA&CAO cancelling the authority of the outgoing officer. 91. Income Tax: The amount of income tax to be deducted from each member liable to pay tax should be worked out and recovery made from pay bills. In pay bill for month of February final adjustment of income tax recovery should be made. Particulars such as amount of LIC premia, amount Postal cumulative Time Deposit etc. should be called for from staff for making final assessment. At the close of financial year a statement of income tax deducted at source for the financial year should be made out in triplicate from office copies of pay bills. Two copies of the statements should be submitted to FA&CAO. Office Manual 55 2. A brief statement in respect of each doctor and each Chemist giving total amounts obtained by them from Central Government employees (in connection with reimbursement of their medical bills)should be prepared quarterly and sent to Income Tax Department. (Ministry of Home Affairs O.M. No.24/10/64-AB dated 26th March, 1965) 92. Departmental Confirmatory Examination for Auditors: Those appointed to Auditors Cadre should pass the departmental Examination for Auditors which is a pre-requisite for confirmation and for promotion to the grade of Senior Auditor. The maximum number of chances allowed for Departmental Examination for Auditors is six. Clerks who are promoted as Auditors will also have to pass this examination within 6 chances failing which they will be reverted. Such clerks are allowed further three chances to appear for Departmental Examination while serving as Clerk/Typist. These chances should be availed of within two years of their reversion. Graduate Group D/Clerks are also eligible to appear in this examination provided they have completed continuous 3 years service as on 1st February/August. Departmental examination for Auditors is to be held every year in February/August for which following three question papers are to be set by respective office. Paper I Railway Audit 2 1/2 hrs. 100 Marks Paper II General Rules & procedure 2 1/2 hrs 100 marks Paper III Revenue Audit Railways 3 hrs 100 marks A candidate will be declared successful on obtaining at least 40% marks in each paper. Failed candidates securing 50% or more marks in a paper will be exempted from having to appear in that paper in the subsequent chances. (Authority: paras 4.3.1., 4.3.2 & 4.3.3 of MIR, CAG'S No.167-Exam/160/86; (Exam 4 of 1987) dt.30.3.87 & CAG's no.421-Exam/160-88 dt.17.5.88) 93. Section Officer Grade Examination For detailed rules regarding Section Officer/Assistant Audit Officer Grade Examination, Chapter V of MSO Administration Vol.I may be referred to. To determine the suitability of candidates for Section Officer Grade Examination, a preliminary test is held in the month of July/August every year which comprises of two papers. 1. General English/General Hindi and Constitution of India 2. Railway Establishment, Expenditure and Books & Budget (Authority: CAG's letters Nos.222/Exam/8-85 dt.1.4.85 & 527 Exam/8-85 dt.1.6.85) 94. Training of candidates for SOGE Examination: Training should be given to SOGE candidates for Part I and Part I examinations by Section Officer/Assistant Audit Officers and Sr/ Audit Officers nominated by the Pr.Director of Audit Lectures may be distributed by Principal Director of Audit among more than one faculty in order to secure intensive treatment of topics under each subject. The lecture sessions should be of a minimum duration of 75 minutes. The timing should be fixed 30 to 45 minutes within office hours and 30 to 45 minutes outside office hours, the number of lectures to be delivered being fixed at the discretion of the Pr. Director of Audit. The training classes will be held provided the total number of candidates (including failed ones) appearing at a particular station is not less Principal Director of Audit, Central Railway 56 than 4 for Part I and not less than 5 for Part II of SOG Examination. Honorarium at prescribed rates may be paid to the lecturers. (Authority: CAG's letter nos. 737-NGE.II/83-68 dated 8.4.68 and 499-O&M /5-82 dt.27.5.82) 95. Statement of candidates for SOG Examination: A list of candidates eligible for SOG examination Part I and part II approved by Pr.Director of Audit should be sent in form prescribed in para 197 of MSO (Administration) Vol.I so as to reach CAG's office by 15th of August each year. An indication whether a particular candidate belongs to Schedule Caste/Tribe should be given in remarks column. Following information should also be furnished. a) In the case of a candidate who has secured the concession of another chance in Part I of SOGE by virtue of his/her having secured 35% marks in the aggregate in any of the last two chances actually availed of by him/her, the month and year of that examination, index number then allotted and marks obtained therein should be indicated in the statement against his/her name in remarks column. b) In respect of candidates of part I who have secured 25% marks in the aggregate entitling them to take up the immediately succeeding examination(s) information as at (a) above namely the index number, marks obtained therein, should be noted against name of candidates in `Remarks' column of the statement. (CAG's no.287-Exam/64-70 dated 28.7.70) c) When no candidate is appearing for the examination a `Nil' statement should be submitted by due date. (CAG's no.100-Exam/20-57 dt.26.4.1957) 2. The list compiled by Administration Section should be checked by a Section Officer/Assistant Audit Officer and AuO other than those responsible for its preparation. As soon as advice is received from CAG about programme of examination and index numbers allotted to candidates, they should be notified and a copy of instructions supplied to them. Candidates who have passed Group I of final examination of ICWA will be exempted from Accountancy paper in Part II. (CAG's letter no.128-Exam/56.68 dated 24th June, 1969) Note: For "Open line Revenue" paper in SOG Part II examination, IRCA Coaching & Goods Tariffs and General Classification of Goods in force on 1st of April preceding the examination will be applicable. (CAG's letter no.389-Exam/151-67 dated 25th July, 1968) 96. Withdrawal from Examination: Candidates who wish to withdraw from examination whether Part I or Part II should apply for permission to do so before list of eligible candidates are sent to CAG i.e.15th of August. Applications received after this date should not be considered unless there are very compelling reasons in support of the request. Permission to withdraw one's name should be applied for in any case before commencement of examination. 97. Grant of Leave to SOGE Candidates for preparation: Leave may be granted to SOGE candidates for preparation subject to administrative convenience and with due regard to principle enunciated in S.R. 232. 98. Passes and Travelling Allowance to SOGE Candidates: The SOG Examination is treated as an obligatory examination for the purpose of Travelling Allowance. Journeys in connection with the examination are treated as journeys on tour. No daily allowances will, however, be paid for days of halt at the place of examination. Travelling Allowance for journeys may be given only for first two attempts of a particular examination. (CAG's letter no.Admn/15-44/56/10638 dated 18th November 1960) Office Manual 57 99. Syllabus for SOG Examination: The Syllabus for the SOG examination is given in paras 228 to 230 of MSO (Admn) vol.1 as amended from time to time. Candidates have the option of using Hindi for answering papers of SOG Part I and II examination. 100. Departmental Revenue Audit Examination for Section Officer/Assistant Audit Officers: Departmental Revenue Audit Examination for Section Officer (Audit) /Assistant Audit Officers belonging to Railway, Commercial etc. Audit Offices has been introduced with effect from the year 1974. Under this scheme Section Officer/Assistant Audit Officers are given training in Income Tax and in audit of receipts at the end of which examination is conducted. Such of those Section Officer/Assistant Audit Officers who pass the examination are allowed one advance increment in the Section Officer/Assistant Audit Officers grade. 2. The Examination consists of two papers of three hours duration, carrying 150 marks each. Books are allowed. Marks required for passing will be 40% in each paper but candidates who obtain 60% or more marks in any paper are exempted from appearing in that paper in any subsequent examination. 3. The examination is ordinarily held alongwith the SOG Examination and Revenue Audit examination for Section Officer/Assistant Audit Officers of Civil Branch. 4. Syllabus: The Syllabus for this examination is given in Annexure 8 to this Manual. 5. Pre-examination training: Paper I (Income Tax) Training will be in the form of a concentrated full time course spread over a period of 10 working days consisting of 25 lectures on various topics prescribed. Training is arranged by the Accountant General concerned nominated by CAG. Paper II: No training is prescribed for Paper II. However, a few lectures may be arranged by the Pr.Director of Audit to be delivered by Executive Officers of Railways on Statistical methods. Completion of prescribed course of training is an essential condition for eligibility to appear in the examination. 6. Eligibility of candidates: All Section Officer/Assistant Audit Officers who desire to appear in the examination and undergo prescribed period of training are eligible to appear in the examination. SOGE passed Auditors who have not been promoted are not allowed for the examination. The candidates will be allowed 6(six) chances in all, without age restriction. In all other matters, rules applicable to Revenue Audit Examination for Section Officer/Assistant Audit Officers of Civil Branch will apply. 7. Forwarding names of candidates to the Office of the CAG: Particulars of candidates recommended by Principal Director of Audit should be forwarded in prescribed form (CAG's letter no. 372-Exam/102-72(iii) dated 10.7.74 and 1115 Exam/183-80 dated 14.10.80) so as to reach CAG's Office latest by 15th July each year. (CAG's letter nos.902-Exam/102-72 dated 31.10.1973 & 2266-Exam/102-72 dated 3.6.1974) 101. Forwarding of applications for employment outside the IA&AD. Application for posts under Central or State Governments and statutory corporations should be sent to administration section for transmission to prospective employer. No Application should be sent directly. Applications other than those in response to advertisements in newspapers or circulars from Comptroller & Auditor General of India's office will not be forwarded. 2. Applications from purely temporary employees may be forwarded unless there are compelling grounds of public interest for with holding them. In case of permanent employees, only four opportunities in a year may be given to apply outside IA&AD. 3. A written undertaking accepting the conditions stipulated in Government of India, Ministry of HA OM No.70/62/62 Estts (A) dated 22.1.1966 should be obtained from the employee before forwarding application from permanent employees for posts in public Sector undertakings/Autonomous bodies. Written undertaking to the effect that in the event of selection to the posts applied for, they will resign from Government service should be obtained from temporary employees. Principal Director of Audit, Central Railway 58 4. Deputation of all government servants to posts in central Public Enterprises should be on immediate absorption basis. However, deputation may be permitted for a maximum period of three years in the case of chief executives and regional/zonal chiefs of central Public enterprises who require continuous liaison and co-ordination with State governments and where expertise acquired in state government is needed for organisational efficiency. (Authority: Ministry of Finance, Bureau of Public Enterprises OM No.5 (25)/83-BPE9PESB) dated 6.3.85 circulated under CAG's letter no.2127-GEI/128-83 dated 29.3.85). 102. Forwarding of applications to UPSC to appear at Competitive Examination: Applications from staff to appear at competitive examination conducted by UPSC may be forwarded. Completed applications in prescribed form should be sent direct by candidates after detaching form of certificate by Head of office/Department printed at the end of application form. This form of certificate should be submitted immediately to Administration section for onward transmission to UPSC after completing entries therein and signing it as early as possible and in any case within a fortnight of closing date for receipt of application. 2. Similarly, in the case of recruitment by selection conducted by UPSC, staff of this office may submit their applications direct to the Commission. They should, however, immediately inform Administration Section giving details of post(s) for which they have applied, file number given on top of `Information for Candidates' closing date for receipts of applications and other necessary particulars. This office will inform Commission as soon as possible but not later than a fortnight from closing date for receipt of applications, quoting reference to Commission's file number and designation of post, stating either that there is no objection to application being considered or that the candidate has not been permitted to apply for post. (Government of India,Ministry of Finance, O.M.No. BPE/GL-034.76/MAN/2 (51)76.BPE (GM) dated 31.8.1976 received under CAG's letter no.2039-NGE III/26-74 dated 23.9.1976) 103. Officiating Promotions in short term vacancies. Short term vacancies arising may be filled in the normal manner in cases where the duration of the vacancy exceeds 30 days. This limit will apply irrespective of whether it is a single vacancy or part of chain vacancies. 2. Officiating promotions in vacancies of 30 days duration or less may be made only in very exceptional circumstances with the prior personal approval of the Head of the Department. (Government of India, Ministry of Finance No.f.10 (20) coord/71 dated 18.11.1970 received under CAG's Endtt.no.586-GE.I/72-72 dated 24.1.1972 and MOF OM No. F10(22)-e(Coord)/74 dated 18.6.1975). 104. Mutual and Unilateral Transfers. In the case of mutual transfers the staff transferred will be assigned seniority for the lower of the two lengths of service. In the case of unilateral transfer staff concerned will be assigned bottom most seniority in the new office. 105. Confirmations: With effect from 1.4.88 confirmation will be made only once in the service of the official, in the entry grade without linking confirmation with availability of permanent vacancy in that grade after successful completion of probation of 2 years and passing departmental examination in the case of Auditors. Confirmation in the grade to which initially recruited will be placed before DPC and a specific order of confirmation will be issued when the case is cleared from all angles. 2. As no officer otherwise eligible will have to wait for confirmation pending availability of permanent vacancy, need for following the procedure for declaring a person quasi-permanent ceases to exist. The present distinction between permanent and temporary employees for grant of pension and pensionary benefits will cease to exist. The need for reservation at the time of confirmation in posts and services filled by direct recruitment will cease to exist as every one who is eligible for confirmation will be confirmed. (Authority: CAG's no.2536-NGE III/43-88 dt.20.7.88 NGE Group Circular no.N/56/1988) Office Manual 59 106. Transfers. See Paras 57 of RAM. 107. Continuance of Staff in the Same Seat/Section. No Auditor should normally be allowed to continue in the same seat for more than three years and in the same section for more than five years without the specific approval of the Deputy Director/Pr.Director of Audit respectively. No Section Officer/Assistant Audit Officer should be allowed to remain in any particular section for more than two years. 108. Compulsory Retirement: Provisions of FR 56 regarding age of superannuation are applicable to staff of this office. Under FR(56)J the appropriate authority has absolute right to retire any Government servant, if it is in public interest, by giving him/her notice in writing of not less than 3 months. For this purpose, the cases of employees attaining the age of 50 years in the case of group B staff and 55 years in the case of group C staff or in respect of those employees who will be completing 30 years of service or 30 years of service qualifying for pension, are to be reviewed by a DPC as per following schedule, and decision taken by the competent authority. Quarter in which review is to be made Quarter to which the cases to be reviewed pertain 1. January to March July to September of the same year 2. April to June October to December of the same year 3. July to September January to March of the next year 4. October to December April to June of the next year A report of the above review is required to be sent annually to HQrs. office by 14th August each year. (Authority: 1.MOHA Department of Personnel & Administrative Reforms OM no.25013/14/77Estt(A) dated 5.1.78 circulated under CAG's letter no.1956NGE.I/61-75A dated 27.9.78. 2. CAG's letter no.2639-N-3/76-86/II dated 20.7.87) 109. Voluntary Retirement: A government servant after completion of 20 years of qualifying service can retire from service by giving notice of not less than 3 months, which shall require acceptance by competent authority. Notice of retirement can be withdrawn before date of retirement, with specific approval of appointing authority. Pension and DCRG of government servant shall be based on emoluments as defined under Rule 33 and 34 of CCS (Pension Rules). 2. A statement of persons who have voluntarily retired from service is to be sent to CAG's office, quarterly in prescribed proforma. (CAG's letter no.845-NGE I/85-79 -II dated 28.3.79) 110. Pension. Head of office is responsible for preparing pension papers. He/She will initiate the pension case 2 years before date of retirement of Government Servant. Deficiencies and omissions in Service Book should be removed and the book completed in good time, at any rate not later than 8 months before date of retirement. It shall be responsibility of Officer maintaining Service Registers to make annual verification and also to complete and certify the Service Book in respect of previous service on 25th year of Service or 5 years before retirement and communicate to Government servants, the period of qualifying service so determined in consultation with Principal Director of Audit, Eastern Railway. (MOF OM.F 11(3)-EV (A)/76 dated 28.2.1976) 111. Pension Papers of non-gazetted Officers: After completing service statements as required in Article 915 of CCS(pension) Rules, forms 6 and 7 should be put up to Director/Dy Director for orders. After obtaining Director/Dy Director/Pr.Director of Audit's orders, in Forms 6 and 7, these forms should be sent in original with a covering letter in Form 26 alongwith service book of the official to the Audit Officer viz. PDA, Eastern Railway, Calcutta, by insured post sufficiently in advance of retirement of the Officer for verification and report on the title to Principal Director of Audit, Central Railway 60 superannuation pension, Death-cum-Retirement Gratuity and Family Pension. Following documents should be sent along with pension case of every non-gazetted and officiating nongazetted officers to Pr.Director of Audit, Eastern Railway, Calcutta. 1. Form 7 with details of service and Form 6 containing the order of Pension Sanctioning Authority. 2. Medical Certificate for invalidation (only if the claim is for invalid pension) 3. Service Book (complete in all respects) 4. Memorandum of average emoluments reckoned for pension 5. Last Pay Certificate. 6. Two specimen signature duly attested by Gazetted Government Servant or in the case of persons not literate enough to sign two slips bearing the left hand thumb and finger impressions, duly attested by a Gazetted Govt. Servant 7. Three copies of joint passport-size photographs with wife/husband duly attested by Head of Office. 8. Formal application for pension in Form 5. 9. Explanation for delay, if any, beyond one month from date of retirement of Government Servant in forwarding forms 6 and 7. 10. When facts of service in another office is not satisfactorily attested in Service Book duly certified abstract from head of Office. 11. Statement of application and collateral evidence as required under article 915 of CSRS duly accepted by authority competent to sanction pension. 2. If after pension papers have been forwarded to Audit Officer, any event occurs which has a bearing on amount of pension admissible, the fact should be reported to the Audit Officer. Immediately after final retirement of the Officer, action should be taken to settle amount due to Government Servant, after taking into account any dues recoverable from him/her. The last pay certificates should be issued thereafter. In cases where it is feared that there may be delay in settling the pension case, action should be taken to arrange payment of anticipatory pension and gratuity to the employee (c/f article 919 of CSRS). 112. Pension papers of Gazetted Officers. The procedure prescribed for non-gazetted officers applies also to Gazetted Officers. After receipt of pension papers from Audit officer duly certifying pension, DCRG and family pension, the papers should be sent to FA&CAO Central Railway, Mumbai for issuing necessary payment order for pension and for making payment of DCRG. 113. Family Pension: Family Pension is also verified and determined alongwith superannuation pension and DCRG. Reference may be made to MOF OM No.F 18(7) EV (B)65 Pt.XII dated 8th August 1966 to determine nominee eligible to receive family pension under Family Pension Scheme of 1964. 114. Settlement Bills: When an employee retires from Government Service, resigns or is relieved on transfer to some other department or is retrenched, dismissed from Service, pay and allowances due to the employee for part of the wage period ending with date on which such event occurs should be drawn in a separate pay bill marked prominently "Settlement Pay Bill". Before drawing such a bill, it should be ensured that there are no dues outstanding against the employee. 115. Maintenance and verification of Leave Accounts and Service Records (SR 197 to 203): The maintenance of service books and leave accounts of Group A and Group B officers and non-gazetted staff of this office is the responsibility of Administration section. All office orders concerning official events of an employee should be entered in his/her Service book. The Sr/Audit Officer (Admn) is delegated powers to attest entries in Service Register and leave accounts of all gazetted officers. Section Officer/Assistant Audit Officer (Admn) is authorised to attest entries in the service book of non-gazetted officers except the first page of the Service book. These powers will not be exercised by them in respect of entries in their own service Office Manual 61 books and leave accounts. The first page of service book is to be attested by Director/Deputy Director (Admn). Annual verification of service is to be attested by Sr/ Audit Officer (Admn). 10% of the other entries should be test checked by Sr/ Audit Officer (Admn) and in token thereof he/she should initial the entry. 2. Service book of each pensionable employee must be verified from pay bills every year and a certificate regarding such verification recorded in the service book, soon after close of financial year. Service books should be verified and attested by staff concerned once a year and annual certificate to the effect recorded and put up to Pr. Director of Audit by 30th September every year by Head of Office. (CAG's letter no.2873/N1/68-81 dated 20.9.82) 116. Budget and Revised Estimates. The instructions contained in Para 72 to 78 of RAM in Chapter IX of MSO (Admn) Vol.I should be borne in mind. 117. Budget and Revised Estimates: The instructions contained in Paras 72 to 78 of railway Audit Manual and chapter IX of MSO (Admn) Vol.I may be seen. The Budget Estimates and Revised Estimates in respect of Group A, B and C and D posts and office expense shall be prepared in the following forms. 1..Group B/Non-gazetted Establishment Forms A to E 2. Group A officers Forms F to I The estimates of funds under Head `Salaries' in the budget will be framed on the basis of trends over preceding 3 years taking into account relevant factors like changes in rates of pay, allowances, number of posts and economy instructions issued from time to time. With effect from 1987-88, provision for `Festival Advances' is to be made under salaries. The provision will be on a net basis, i.e. net of recoveries under the head `Salaries'. (Authority; C&AG's No.1653-BRS/I-80 dated 11.6.80, 2903-BRS/315-86-I dated 4.8.86,3982BRS/315-86-I dated 27.10.86 and 1036-ACI/171-86 dated 26.9.1986). 118. Revised and Budget Estimates of Pensionary Charges: The pensionary charges of Audit staff are booked directly under sub-minor head "Pensionary charges" of railway audit staff, under Major Head `Pensionary charges: 346" Revised and Budget Estimates of this office are to be sent to FA&CAO, Central Railway, Mumbai. Revised Estimates are prepared on the basis of pension sanctioned during the year as well as in previous year. Budget Estimates are prepared by taking into consideration pensions that are likely to be sanctioned in respect of employees who are to retire in budget year. 119. Register of expenditure. (GF Rules 66) All Pay, TA, and other bills relating to claims of Officers and staff for each month classified under the detailed heads of account should be posted in this register. 120. Register of Contingent Expenditure. This register is intended to record contingent expenditure such as telephone charges, cost of stationery and forms, books and periodicals, furniture, liveries and charges for repair of furniture and equipment etc booked under detailed head 216-Audit-Principal Director of Audit, Central Railway-A(4) Miscellaneous Offices Expenses. 121. Control Statements. (see para 366-et seq of MSO(Admn)Vol.I) Statement of expenditure under Major Heads 216 Audit should be prepared in Form 19 of MSO commencing from the month of September and sent to CAG. These monthly reviews of expenditure should reach the CAG's office by the middle of the month succeeding that to which they relate. 2. Expenditure booked as also expenditure proposed for inclusion in accounts for that month by Accounts (FA&CAO) has to be ascertained. This expenditure and not the one noted in the Principal Director of Audit, Central Railway 62 Register of expenditure should be included in column 3 of Control Statement. Main purpose of these reviews is to limit expenditure to allotment. Control statement for January due by 15th February should be carefully scrutinised to surrender any unwanted provision. 122. Register of liabilities. A liability Register should be maintained in Form GFR 6 with a view to keeping a systematic watch on liabilities to be met (see Govt. of India decision no(1) below rule 71 of GFRS). This register should be reviewed every month and suitable action taken to see that supplies are made without delay and that bills are received and accepted in respect of supplies made. The register should be put up to the Director/Deputy Director (Admn) quarterly on 5th of June, September, December and March. 123. Appropriation Accounts. See Para 80 of RAM. The accounts should be compiled in the proforma prescribed in CAG's MSO (Audit) vol.II. Explanations for variations in appropriation accounts should conform to those given in the various control statements, especially the last one. 124. Appropriation Accounts of Pensionery Charges. The appropriation accounts in respect of pensionary charges will be compiled and sent to the FA&CAO, Central Railway. 125. Recovery of Rent for Railway Quarters. Rent, electricity charges, water charges, mali charges etc. are required to be recovered from staff who are in occupation of railway quarters at the same rate as applicable to railway employees. A rent roll should accompany the pay bill as prescribed. 126. Recovery Registers: Recovery Registers should be maintained for each category of advance granted as follows: 1. 2. 3. 4. 5. 6. 7. Advance of Pay on transfer General Provident Fund Advance Advance for Conveyances(i.e. Motor car/Scooter/Bicycle etc) Festival Advance Advance for purchase of Fan for class IV(group D) House Building Advance Loans from Employ ee Co-operative Credit Society. Entries in respect of items 1 to 6 are made from office orders/sanctions and entries in respect of item 7 are made from the debit schedules received from the Co-operative Credit Society. Actual recoveries effected through pay bills should be noted in the register monthly and attested by the Asstt.Supdtt (Admn). 127. Arrears Bills. Arrears of pay, allowances, leave-salary etc. if more than three months old should be drawn through a separate pay bill giving reference to the main bill in which it was not drawn. The certificate mentioned in the Central Government Receipts & Payments Rules should be recorded on the arrears bill. See para 82 of GF Rules also. 128. Last Pay Certificate. Last Pay certificate is required to be prepared only when staff are transferred out of this office, i.e. to the jurisdiction of another Accounts/Audit Office. 129. Disbursement of pay and Allowances. Clear indication should be given on Pay bills about the place of payment on pay day. Sr./ Audit Officer(Admn)/Branch Officer should nominate a Section Officer/ Assistant Audit Officer for witnessing payment on pay day. For payments on other days, procedure laid down by FA&CAO should be followed. 130. Endorsement of Sanction etc. to Pr.Director of Audit, Eastern Railway, Calcutta. Copies of all sanctions and office orders should invariably be endorsed to PDA, Eastern Railway. CAG has prescribed 25th of every month as due date for receipt of paid vouchers for previous month by PDA/ER. (CAG's letter no./1149-TAI/239-66 dated 20.4.67) Office Manual 63 131. Leave: Leave should be applied for by members of staff in prescribed form. Leave applications should be forwarded to administration section duly recommended by Section Officer/Assistant Audit Officers and Branch Officers. See delegation of Powers to Sr/ Audit Officers for sanctioning leave to staff under them. The staff of this office are governed by the Central Civil Services (Leave) rules, 1972 which have come into force with effect from 1.1.1976. The main features of these leave Rules are as under: 2. Entitlement of Earned Leave: Each employee's leave account should be credited with 30 days in a calendar year. This should be done in two instalments on 1st January and July at the rate of 15 days. The leave at the credit of the employee at the close of previous half year should be carried forward to the next half year subject to the maximum limit of 240 days. Thereafter, credit of 15 days given during a half year should be shown separately as 240+15. Leave availed during the half year should be debited against the 15 days shown separately. Balance of leave remaining at credit out of this 15 days will not be carried forward to the next half year. 3. Earned leave should be credited to an employee’s leave account at the rate of 21/2 days for each completed month of service which he/she is likely to render in the calendar half year in which he/she is appointed e.g. if a person is appointed on 13th March, the number of completed months of service in that half year will be three and the credit will be 3 x 5/2 =71/2 days rounded to 8 days. 4. Credit for the half year in which a government servant is due to retire or resigns from service should be allowed at the rate of 21/2 days per completed month in that half year upto the date of retirement/resignation. If in the case of a Government Servant who resigns from service, leave already availed of is more than the credit so due to him/her necessary adjustment should be made in respect of leave salary overdrawn, if any. 5. The credit so afforded should be reduced by 1/10th of the period of extraordinary leave availed of during the previous half year, subject to a maximum of 15 rounded off to the nearest day. 132. Prefixing and Suffixing of holidays to leave. Prefixing and suffixing holidays to leave other than leave on medical certificate, is allowed automatically except in cases where for administrative reasons permission for prefixing/ suffixing holidays to leave is specifically withheld. In the case of leave on medical certificate if the day on which an employee is certified medically fit for rejoining duty happens to be a holiday the Government Servant should be automatically allowed to suffix such holidays to his/her medical leave and such day(s) should not be counted as leave. 133. Leave on Medical Certificate. (i) A Gazetted Government Servant can be granted leave on medical certificate for a period exceeding two months on the basis of a certificate from an Authorised Medical Attendant/CGHS as in the case of non-gazetted Govt. servant. Where authority competent to grant leave is not satisfied about the genuineness of a particular case, it shall be open to such authority to secure a second medical opinion by requesting a Govt. Medical Officer not below rank of a Civil Surgeon or staff surgeon to have the applicant medically examined on the earliest possible date. 134. Commuted leave. There is no limit for availing Commuted leave in conjunction with earned leave. However, commuted leave will be sanctioned only if the application is accompanied by a medical certificate issued by an Authorised Medical Attendant/CGHS. 135. Leave not due to temporary Government Servants. Temporary Government servants who are suffering from TB, Leprosy, Cancer and Mental illness, Leave not Due may be granted for a period not exceeding 360 days during entire service subject to fulfilment of conditions prescribed in these rules. 136. Extraordinary leave to Temporary Govt. Servants.(Rule 32 of CCS (Leave) Rules) Principal Director of Audit, Central Railway 64 Extra-ordinary leave to temporary Government servants may be granted as under: a. upto three months without medical certificate b. upto six months with medical certificate for common ailments. c. upto 18 months on medical certificate for Cancer, Mental illness, pulmonary Tuberculosis or Pleurisy or Tubercular origin, Tuberculosis of any part of the body and leprosy. provided that for grant of Extra-ordinary Leave as at (b) or (c) above the Government servant should have put in a minimum of one year's continuous service and grant of leave under (c)the Government servant should produce a medical certificate as envisaged in clauses (c) and (d) of sub-rule (2) of Rule 32 ibid. 137. Maternity leave - Rule 43. Maternity Leave may be granted for a period of 180 days (w.e.f.1.9.2008) from the date of its commencement in all cases. 2. Maternity leave not exceeding 45 days may also be granted to a female government servant (irrespective of the number of surviving children) during the entire service of that female government servant in case of miscarriage including abortion on production of medical certificate as laid down in Rule 19. Provided that the maternity leave granted and availed of before the commencement of the CCS (Leave) Amendment Rules, 1995, shall not be taken into account for the purpose of this sub-rule. (A) Paternity leave – 1) A male govt. servant (including an apprentice) with less than two surviving children, may be granted paternity leave by an authority competent to grant leave for a period of 15 days, during the confinement of his wife for childbirth (ie) upto 15 days before, or upto six months from the date of delivery of the child. 2) During such period of 15 days, he shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. 3) The paternity leave may be combined with leave of any other kind. 4) The paternity leave shall not be debited against the leave account. 5) If paternity leave is not availed of within the period specified in sub-rule(1), such leave shall be treated as lapsed. (B) Child adoption leave: A female government servant on adoption of a child, may be granted leave of the kind due and admissible (including leave not due and commuted leave not exceeding 60 days without production of medical certificate) for a period of one year or till such time the child is one year old, whichever is earlier. However, this facility will not be admissible in case she is already having two surviving children at the time of adoption. The benefit of 135 days has been extended to adoptive mothers with fewer than 2 surviving children as ‘Child Adoption Leave’ on adoption of a child upto one year of age, on the lines of maternity leave admissible to natural mothers. During this period, she shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. Child Adoption leave may be combined with leave of any other kind. This leave shall not be debited against the leave account. (C) Child Care Leave (CCL): As per the recommendations of the 6th Central pay commission, women employees having minor children may be granted child care leave (w.e.f.1.9.2008) by an authority competent to grant leave, for the maximum period of two years (ie. 730 days) during their entire service for taking care of upto two children whether for rearing or to look after any of their needs like examination, sickness etc. CCL shall not be admissible if the child is eighteen years of age (or) Office Manual 65 older. CCL can be availed only if the employee concerned has no Earned leave at her credit. The leave is to be treated like Earned leave and sanctioned as such. It may be availed of in more than one spell. 138. Calculation of leave salary. All government servants are entitled to leave salary equal to the pay drawn immediately before proceeding on earned leave (w.e.f.1.3.1976). 139. Leave Salary Advance. See rules 259 et seq of General Financial Rules (Second edition). This includes allowances as well subject to deduction on account of income tax, Provident Fund, House Rent, Recovery of Advance etc. 140. (1) Cash Equivalent of Leave Salary in case of Death in Service. In case of death in service of a Government servant, the cash equivalent of leave salary in respect of earned leave at credit to be paid to the family should be subject to a maximum of 300 days. This is not subject to any reduction on account of pension or pension equivalent of DCRG. This also carries appropriate amount of Dearness Allowance. (2) Cash Payment in lieu of unutilised earned leave on the date of retirement. The cash payment is admissible to Central Govt.servants who retire on Superannuation on or after 30.9.77. This concession is subject to following conditions. a. Payment of cash equivalent of leave salary shall be limited to a maximum of 300 days earned leave. b. Cash equivalent of leave salary thus admissible will become payable on retirement and will be paid in one lump sum as a one time settlement. c. Cash payment will be equal to leave-salary as admissible for earned leave and dearness allowance admissible on that leave salary at the rates in force on the date of retirement. No city compensatory allowance and/or house rent allowance shall be payable. d. The authority competent to grant leave shall issue order granting cash equivalent of earned leave at credit on the date of retirement. (see Government of India letter No.P 14028/1/77-E IV-A dated 29.10.1977 received under CAG of India's endorsement no.946-Audit/2-77(43) dated 24.11.1977) (3) Encashment of Earned leave along with Leave Travel Concession(LTC) while in service: A government servant may be permitted to encash earned leave upto 10 days at the time of availing LTC while in service(w.e.f 7.10.1997) subject to the conditions that : 1. Earned leave of at least an equivalent duration is also availed of simultaneously by him. 2. A balance of at least 30 days of earned leave may be available to his credit after taking into account the period of encashment as well as leave. 3. 4. 5. The total leave so encashed during the entire career does not exceed 60 days in the aggregate. No HRA (or) CCA shall be payable. The leave encashed at the time of LTC will not be deducted from the maximum amount of earned leave encashable at the time of retirement. (4) Encashment of HAPL : In supersession of all earlier orders, both EL and Half pay leave shall be considered for encashment of leave subject to overall limit of 300 days (w.e.f. 1.9.2008). The cash equivalent payable for earned leave shall continue unchanged. However, cash equivalent payable for half pay leave shall be equal to leave salary as admissible for half pay leave plus Dearness allowance admissible on the leave salary without any reduction being made on account of pension and pension equivalent of other retirement benefits payable. To make up the shortfall in earned leave, no commutation of half pay leave shall be permissible. The cash equivalent for Half pay leave component shall be calculated on the basis of half pay leave salary admissible Principal Director of Audit, Central Railway 66 on the date of retirement plus D.A. admissible on that date and the number of days of half pay leave at credit subject to the total of earned leave and HPL at credit not exceeding 300 days. 141. Advance of TA on tour and transfer. See Rules 231 et seq and 222 et seq of General Financial Rules (Second edition). Advance for TA on tour is normally admissible upto 75% of the anticipated claim, which has to be adjusted in TA bills to be submitted immediately on completion of the tour. Advance of TA should be noted in TA register and attested by Sr./ Audit Officer(Admn) and necessary entry that the TA advance has been adjusted should be made in the Register. A temporary employee should furnish surety bond from a permanent employee, alongwith his/her application for advance. 142. Travelling Allowance - check of claims As audit staff are governed by Railway TA Rules contained in the Indian Railway Establishment Code, the TA Claims are to be submitted by them in railway TA journal, separately for each month. The same is to be scrutinised by controlling officer, i.e. Sr./ Audit Officer(Admn) for Nongazetted officers/Director/Dy Director of Audit (Admn) for gazetted officers for counter signature. The claims after verification of commencement, completion of journey, no.of days, rate of TA advance of TA. Gross/Net claims have to be entered in the register, to be put up to Sr/ Audit Officer (Admn) alongwith claims of non-gazetted officers/staff. The amount of claim is to be entered and paid alongwith Salary Bill, TA Journal/claims received in Administration upto 10th of the month will be included in pay bill. 143. Children’s' Educational Allowance/Reimbursement of Tuition fees and Hostel Subsidy. In supercession of all earlier orders, the following instructions have been issued w.e.f. 1.9.2008: a. Children Education Allowance and Reimbursement of Tuition fee which were hitherto payable separately will be merged and henceforth be known as ‘Children Education Allowance Scheme’. b. Under this scheme, reimbursement can be availed upto a maximum of 2 children. c. Reimbursement as indicated above will be applicable for expenditure on the education of school going children only (ie) for children from classes nursery to twelfth, including classes eleventh and twelfth held by junior colleges (or) schools affiliated to Universities (or) Boards of education. d. The reimbursement shall have no nexus with the performance of the child in his class. Even if a child fails in a particular class, the reimbursement shall not be stopped. 144. Preferring of Claims for Children’s Educational Allowance/ Reimbursement of tuition Fees/ Hostel Subsidy. The claims in respect of Children’s' Educational Allowance on account of Reimbursement of Tuition Fees should be preferred in proforma given in Annexure 9 to this Manual. The claims on account of Hostel Subsidy should be preferred and admitted on the strength of Certificate furnished by Employee in form (Annexure-10) alongwith Certificate obtained from Head of School (Annexure 11) 145. Overtime. Grant of overtime allowance to staff of this office is governed by provisions contained in Ministry of Finance O.M. No.15011/2/E-II (B)/76 dated 11.8.1976 received under CAG's endorsement no.916-Audit/5-77(36) dated 14.9.1976. The following categories are not entitled to overtime allowance: a. Government servants holding gazetted posts. b. Government servant holding non-gazetted post whose pay exceeds Rs 2000 per month. c. Government Servants who hold Supervisory posts not excluded by clauses a & b above unless they fulfil the following conditions i. they are in direct and continuous contact with staff they supervise ii. they work the same hours as the staff under them; and Office Manual 67 iii. they are themselves subject to the kind of supervision which would enable them ordinarily to obtain prior approval for overtime. 2. Bills for overtime allowance should contain full details regarding duration of over time worked, rates of overtime allowance, name and designation of Government Servant and emoluments drawn. A monthly statement showing separately amount paid as overtime allowance to personal staff, staff car drivers and all others in the proforma prescribed vide Annexure 12 to this manual. This statement should be sent by the 15th of the succeeding month. (CAG's letter no.4093-NGE.i/136-75 dated 12.12.1975) 3. Following further instructions should be borne in mind. i. Group D staff (class IV) should not be retained beyond such time when over time allowance becomes admissible. If it is necessary to retain Group D staff beyond such limit it should be done by a system of Pooling under which some will come early and others a little late without involving payment of overtime allowance. ii. Payment of overtime allowance to personal Staff should be avoided by staggering the hours of work (staff attached to Senior Officers). For payment of overtime where essentiality is clearly established, prior approval of Pr.Director of Audit should be obtained. iii. Special care should be taken by Supervisory Officers viz. SO/BO/Group Officer to ensure that working hours are put to full and effective use by staff under them. The work should be so managed that it is not necessary to put any staff on overtime duty. However, there may be cases occasionally where it becomes necessary to do so; in such cases overtime allowance is admissible according to rules if essentiality of work is clearly established, and approval of Pr.Director of Audit is obtained. iv. Staff who attend office on Sundays and holidays should as far as possible be allowed Compensatory leaveError! Bookmark not defined. in lieu of such attendance and overtime allowance should not be paid. 4. A register of overtime work should be maintained in the form given in annexure 13 to this manual. A certificate by drawing officer in the form prescribed vide Annexure 14 to this manual should be attached to the bill in which overtime allowance is drawn in respect of every Govt. servant to whom overtime allowance is paid. 146. Festival Advance. See Rules 236 et seq of GFRS (2nd edition) 147. Cycle Advance. See Rules 212 et seq of GFRS (2nd edition) 148. Issue of passes and PTOs and maintenance of Pass and PTO Account. Except in unforeseen circumstances, application for passes and PTOs should be submitted at least one week before they are required for use. All applications for passes and PTOs should be approved by Branch officer concerned. With effect from 01.2.1986, Assistant Audit officers( Group B gazetted) are authorised to sign both Home Line/Foreign line passes/PTOs for Group B Officers (Audit officers and Asstt.Audit officers) Group C and Group D officials on behalf of Pr.Director of Audit, based on instructions, rules and orders issued by Railway Board/Railway Administration from time to time. Asstt.Audit Officers should keep Home Line and Foreign Line Pass/PTO books in their custody. (CAG'S letter no.682-RAN/t/17-4/84 DATED 16.12.1985) 2. All other kinds of passes viz.; Duty cheque Passes, School Passes, passes on Transfer account, Complimentary passes, Card passes etc. will be issued by Sr./ Audit Officers/ divisional Sr/ Audit Officers concerned as per the existing delegation of powers made from time to time. Principal Director of Audit, Central Railway 68 3. Passes/PTOs issued by Sr/ Audit Officers/Asstt.Audit Officers are subject to quarterly review by another Asstt.Audit officer to be nominated by Director/Dy Director (A) and results of review being submitted to the Pr.Director of Audit for confirmation. (Authority-POO No.1107 dated 16.1.86) 4. Pass/PTO books and Accounts Register should be obtained by the Divisions/branch offices from the head office. All duty card passes should be supplied to them by the Head Office on requisition. 5. Free residential/school passes/3rd concessional rate authorities in lieu of lost and passes over Central and western railways (suburban section) should be issued from the Headquarters office. 149. Custody of Pass and PTO Books: Immediately on receipt, blank pass/PTO books should be examined, the continuity of the serial numbers of the Blank Passes/PTOs verified and a certificate of verification recorded on outer covers of books under Signature of Gazetted Officer concerned. This verification should not under any circumstances be postponed to the date on which the books are to be brought into use. Outer covers of books containing certificates of verification should be preserved carefully. 2. Whenever any books are issued to Divisional or branch Audit Offices, issuing Officer should check continuity of passes/PTOs and record a certificate of verification on outer covers before books are despatched. The receiving Officer should also verify continuity immediately on receipt of books and record a similar certificate under his/her dated signature. 3. The stock of pass/PTO books including those in use should be kept in safe custody by the officers concerned under their personal charge. The preparation of passes/PTOs for issue as well as the check of passes/PTOs prepared for issue should be done in the officer’s room and in his/her presence. After a pass/PTO is written, the issuing officer himself should tear off the pass/PTO from the book, hand it over to the dealing auditor for issue to the applicant retain the book in his/her personal custody under lock and key. 4. The auditor who makes out Pass/PTO should not under any circumstances leaveError! Bookmark not defined. the books(s) on the table and leave the officer's room. If he/she has to go out for any urgent work, he/she should return the book to the officer for safe custody. 5. The verification of all the blank foils of all the pass books in stock and in use should be done half yearly and a certificate to this effect recorded in the stock register.Verification should also be done every time there is a change in incumbents responsible for the custody of books and a certificate to this effect recorded in the stock register by the persons handing over and taking over charge respectively. The half yearly verification should be done in the first week of January and July each year. An entry should be made in the calendar of Returns of the Administration Sections and Divisional Audit Offices in respect of which the officers concerned hold separate stocks of pass/PTO books. 6. Whenever there is a change of Branch of divisional Officer, the handing and taking over of the stock of pass/PTO books and other card passes should take place directly between the officers concerned. The verification should not be confined only to the commencing and closing numbers of the books but all the folios of the books should be verified in regard to continuity. This fact should be recorded in the list of pass/PTO books after the endorsement `taken over' by the relieving officer. 7. During internal inspection of Divisions and Sections, the ECPA section should particularly verify that the instructions in regard to the safe, custody and periodical verification of the books at the time of receipt of supply and subsequently once in six months are being observed by the units concerned and the result of the examination included in the review notes to be submitted to the Pr.Director of Audit. Office Manual 69 8. A Register of Residential card passes should be maintained recording issue of such passes to staff and their acknowledgements obtained therein. The stock register should be preserved permanently. Duty card passes in use will be in the custody of the Assistant Audit Officer (Admn) should be entered in a register called "Register of Movement of card passes". 150. Grant-in-aid to Staff recreation Clubs Grant-in-aid is intended for provision of amenities recreational or welfare facilities such as games, and is sanctioned as per prescribed scale on the basis of entire strength of non-gazetted staff including Group D and gazetted officers. In addition, adhoc grants are also received from Comptroller & Auditor General's office on the basis of proposals sent by this office. (Authority: CAG's letter no.352 NGE V/73-89 dated 18/2/3-1988) 151. Preparation of Staff proposals: As budget estimates for this office are based on proposals made by this office for creation of new posts required during the budget year concerned, staff requirements, assessed on the basis of detailed job analysis of work done by various sections and branch offices are to be forwarded to CAG by 25th July every year. These sections and branch offices should forward their proposals with detailed statistical data by 2nd week of June or by prescribed date to Administration Section. The justification for existing strength or additional staff required should be supported by data based on monthly average of work done in May, July, January, February and March (excluding March final and supplementary) of preceding financial year. 2. The following general instructions should be strictly adhered to in formulating proposals: a) The prescribed standard time for each item of work has to be adopted. b) Items for which no standards are fixed by the C&AG of India should be exhibited in a separate statement adopting adhoc standards. c) The standard man hour per Auditor should be taken as 1900 man hours/272 days per annum. d) The man hour statistics compiled by Section Officer/Assistant Audit Officer/Asstt.Audit officer of the section concerned should be got checked independently by another Section Officer/Assistant Audit Officer/Asstt.Audit Officer nominated for the purpose by Branch Officer. The man hour statistics of the whole office should be test checked by Section Officer/Assistant Audit Officer/Asstt Sr./ Audit Officer(Internal audit/Efficiency-cumperformance Audit section) and reviewed by Sr./ Audit Officer (ECPA). 3. On receipt of proposal from sections and Branch offices, detailed note showing particulars of posts proposed for creation and continuance is to be put up to Pr.Director of Audit for approval. Detailed staff proposals are not to be forwarded to Headquarters Office, where increase or decrease in work load as compared with the previous year, is not more than 5%. A certificate that there is no reduction of staff based on work load and as such the existing strength may be allowed to continue, should be forwarded to the office of Comptroller & Auditor General of India. Increase in work load by 5% or more is to be assessed for a particular group or groups, as compared with previous year, and proposals for sanction of additional staff for particular group/groups, as approved by the Pr.Director of Audit, should be included in the staff proposals of C&AG of India's office. 4. The staff proposals should be accompanied by 1. A summary of proposals 2. A statement showing the group-wise, section-wise distribution of regular sanctioned strength (both permanent and temporary) other than Casual posts 3. A statement of regular temporary posts for which provision is proposed to be made in Revised estimates and Budget Estimates in prescribed form 4. A statement indicating clearly the additional posts proposed on work standard/norms for the different groups/sections. Principal Director of Audit, Central Railway 70 5. Full details of Supernumerary/shadow/Deputation reserve posts and justification for their continued retention 6. Staff position statements in forms 14 & 15 of MSO(A) Vol.I 7. Details of existing permanent posts held in abeyance, together with the justification for continued retention 5. All sanctions relating to gazetted posts are accorded by Principal Director of Audit is empowered to accord sanctioned for creation of regular temporary post of Group C which have been approved by Comptroller & Auditor General of India for inclusion in the budget for that year subject to other conditions as laid down in HQrs.office Circular no.1267/BRS/60-69 dated 12.5.1970 being satisfied. 6. The annual review for conversion of temporary posts into permanent ones is to be conducted in 1st week of July each year. (C&AG's no.1224-N III/64-82/FIV dated 28.4.1983) 7. Pr.Director of Audit is empowered to sanction continuance of temporary posts upto that of Section Officer/Assistant Audit Officers and creation of such posts on a temporary basis, for seasonal work and for temporary work of emergent nature subject to following conditions: a) All circumstances justifying the original sanction by the Comptroller & Auditor General of India continue to exist b) Funds have either been provided in the Budget/Revised Estimates or can be found by valid re-appropriation from sanctioned budget allotment, and c) A report of having extended the posts will be sent to Comptroller & Auditor General of India. 8. Register of sanctions: All sanctions for permanent and temporary posts should be recorded in a register, exhibiting therein permanent and temporary posts separately containing detailed information about the posts, date of sanction, purpose for which sanctioned etc. The entries in the register should be attested by Sr/ Audit Officer (Admn). 9. Sanctioned Strength: A statement showing sanctioned strength and staff in position as on 1st of every month another one showing additional regular posts sanctioned by Principal Director of Audit under his/her powers as on 1st day of the preceding month as also a statement showing cause of vacancy, should be sent to Comptroller & Auditor General of India so as to reach him/her by 10th of every month. 152. Increments (Para 290-MSO Admn) Vol.I and 99 Railway Audit Manual): All increments accrue as a matter of course in terms of FR 26, unless withheld as a disciplinary measure. Increment Register will be submitted to Sr/ Audit Officer (Admn)/Director/Dy Director of Audit every month before drawal of normal increments. 2. Clerk/Typist promoted from Group D as also those appointed on compassionate grounds, will not be granted increment, unless they pass the prescribed type test. (3) As per Rule 10 of CCS(RP)Rules, 2008 there will be one uniform date of annual increment,viz. 1st July of every year. Government servants completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. Accordingly, all govt. servants who earned their last increment between 02.01.2005 and 01.01.2006 would get their next increment on 01.07.2006. (4) For those employees whose date of next increment falls on 01.01.2006, an increment may be granted in the pre-revised pay scale as on 01.01.2006 and their pay fixed in the revised pay scales. Such govt. servants would also get their next increment on 01.07.2006. 153. Recruitment of Group C staff: Recruitment to cadres of Auditors Clerks, Stenographers, i.e. clerical cadres in IA&AD is done through Staff Selection Commission under Department of Personnel and Training which at present have regional office at different places to feed Office Manual 71 requirements of different offices located at various states/Union Territories. Appointing authority in IA&AD will intimate number of anticipated vacancies in general and reserved categories to the Commission which will forward list of candidates along with dossiers of each person to whom appointment offers are to be made on standard forms. (Authority: CAG's no. 49 NGEII51-61 dated 20.1.62 & NGE III/51 NGE II/75-II dated 24.2.79 2. Recruitment Rules of the post of Auditors. Recruitment is done as follows: a. 50% of vacancies by direct recruitment b. 40% of the vacancies in Auditors cadre are to be filled by promotion of Clerks with 5 years regular service in grade on seniority basis, failing which by direct recruitment. c. 10% of vacancies by promotion of Group D official or graduate clerks with three years continuous service on passing the Departmental Examination for Auditors or Clerks passing the Section Officer/Assistant Audit Officers grade Examination Part I failing which by direct recruitment. Note: Direct recruits and clerks promoted on Seniority basis are required to pass a Departmental Examination for Auditors within such time limit and within such chances as prescribed by Comptroller & Auditor General of India failing which the recruits shall be liable to be discharged from service and promotees reverted to Clerks Grade. 3. On passing departmental examination successful candidates will draw Qualification Pay QP) OF Rs.60/-p.m. w.e.f. the day following last day of Examination Qualification Pay will not be merged with Pay and no DA CCA Tribal Allowance, HRA, will be admissible on Qualification Pay. The Qualification Pay will however be counted as pay while fixing pay on promotion. ( Authority: MOF Notification No. CSR/615 dated 14.7.88 received under CAG's No. 768N2/47-88 dated 26.8.88 & .MOF OM No.7(8)-EIII/87 dated 4.10.88 received under CAG's no. 987-Audit 84-86/IV-86(192) dated 13.10.88) 4. Recruitment Rules for the posts of Clerks/Typists: Recruitment is done as follows: 1. Direct recruitment 85% 2. 5% from amongst Group D officials with 5 years regular service in the grade and who possess Matriculation or equivalent qualification on seniority basis, subject to rejection of unfit, failing which by direct recruitment. 3. 10% from amongst Matriculate Group D officials qualifying the Limited Departmental Competitive Examination failing which by direct recruitment. Preference in promotion to Clerks Grade will be given to those who have qualified in the type test. Note: 1).In offices where non-matriculation Group D officers having qualified in departmental examination held prior to the commencement of these rules are awaiting promotion, the method of promotion on seniority basis mentioned at item (ii) will not apply and 10% of vacancies will be utilised for promotion of such staff and vacancies to be filled by direct recruitment correspondingly reduced. Note: 2) unless exempted by orders issued in this behalf by the CAG's of India a Clerk who has not qualified in the prescribed type test will not be entitled to increments, confirmation or promotion by seniority or through any departmental examination. (Authority: MOF OM notification GSR 611 dt. 14.7.88 received under CAG's no. 851-N2/68/85 dt. 23.9.88) 5. Recruitment rules for the posts of Stenographers: Recruitment is done as follows: 1. 80% by direct recruitment 2. 20% by promotion of Clerks, who have qualified in Limited Departmental Competitive Examination for promotion as stenographer as specified by CAG, failing which by direct recruitment. Principal Director of Audit, Central Railway 72 154. Recruitment against sports quota: Appointment of meritorious sports person can be made by Principal Director of Audit to any post in Group C or D as per extant orders of Comptroller and Auditor General of India. Recruitment against vacancies reserved for sports quota should be made only after calling for applications from eligible candidates by inserting advertisements in leading newspapers and employment news. Applications received from meritorious eligible sports persons in response to press advertisement are considered by the competent authority. 2. Relaxation of upper age limit is allowed in respect of meritorious sports persons upto a maximum of 5 years (10 years in case of those belonging to SC/ST) for appointment in Group C and D. This concession will be admissible only to those sports persons who satisfy all other eligibility conditions relating to educational qualifications etc. 3. Annual report on sports quota appointments for a year should be sent to headquarters office by 15th of January of succeeding year. (Authority: CAG's letter no. 1019-NGEIII/36-86-vol. dated 31.3.89) 155. Recruitment of Group D staff (Paras 141 to 344 of MSO (Admn/Vol.I): The application of the following categories should only be considered for appointment for group D posts. 1. Those sponsored by Employment Exchange. 2. Those who are already working as contingency paid labour in the office concerned provided they are registered with employment exchange and possess requisite qualification prescribed for appointment to Group D. The minimum age limit is 18 years and maximum 25 years. The minimum qualification for recruitment is VIII th std. pass from a recognised Board. (Authority: i.MOF Notification GSR 662 dated 5.8.88 received under CAG's no.810-N2/51-88 dated 14.9.88 ii.CAG's o.4561-NGEIII/34.86 Vol.I Kw3 dated 30.12.87) 156. Relaxation of Age limit. The upper age limit for recruitment is 25 years for groups C & D (class III and Class IV) staff. This upper limit may be relaxed in the case of Schedule Castes/Tribes candidates. Relaxation is also permissible in the following cases. i. ii. iii. iv. Residents of former Portuguese territories The Union Territory of Pondicherry. Indian nationals who have migrated from East Africa Repatriates from Burma and Ceylon Displaced persons from Pakistan to the extent notified by the government from time to time. 2. Upper age limit in respect of persons who are within prescribed age limit and placed in the panel may be relaxed upto one year by the appointing authority for their appointments in turn in respect of Groups C and D (Class III and Class IV) staff (para 280 and 342-M.S.O Administration. Vol.I) 3. Where due to extension of life of panels, candidates are over-aged by more than one year when their turn for appointment comes, sanction to extension of lives of panels accorded by CAG may be assumed to imply permission to age relaxation beyond one year wherever necessary. Necessary formal age relaxation may be granted by appointing authorities in such cases without referring to CAG's office. 157. Extension of time limit for joining duty for new recruits. Pr.Director of Audit is empowered to grant extension of time for a maximum period of 2 months at the request of candidates for joining duty either due to illness of self or other reasons. Extension beyond the above period requires approval of CAG. In cases where delay is solely due to non-completion of medical formalities in respect of candidate himself Pr.Director of Audit may grant extension of time to join initial appointment without any limit of time. In the case of Office Manual 73 those who could not join within prescribed time limit due to illness or self or other reasons, seniority will be reckoned with reference to actual date of joining duty only. In cases where delay is due to non-completion of medical formalities, panel seniority of candidates will remain intact. (Authority: CAG's letter nos. 3173-NGEIII/98-79 dtd 18.10.79 and no. 344-N2/29-82 dated 28.10.83) 158. Verification of identity. Identity of candidates is verified at the time of appointment by comparison of signature in joining report with that on the original application and other records like attestation form etc. received from the Central Recruiting Agency. 159. Communal Roster. A communal roster indicating number of reservations to be made for Schedule Castes and Tribes Candidates in respect of recruitment and confirmation should be maintained in accordance with orders issued by Government of India from time to time (Ministry of home affairs letter No. 27-25/68-Est (SCT) dated 25/3/1970 as amended by their letter no.I/II/69 Est (SCT) dt. 28.9.1970). Reference should also be made to Brochure on Reservations for scheduled Castes and Scheduled Tribes Services "issued by Ministry of Home Affairs". 2. The register (roster) should be got inspected from ECPA section periodically as laid down and return sent to CAG'S office. 160. Appointments on Compassionate grounds: Appointments in Group C and Group D cadres of dependants of employees who die in harness (while in service) may be considered by Heads of Departments based on merits of each case under the following circumstances. a. When a government servant dies in harness, leaving his/her family in immediate need for assistance and in the event of there being no other earning member in the family. b. The appointment on compassionate grounds of a son/daughter/ wife/near relative of a government servant who dies in harness will be considered even when there is an earning member in the family of the deceased government servant if the Pr.Director of Audit is satisfied that the grant of the concession is justified having regard to the number of dependants left by the deceased government servant assets and liabilities left by him/her, income of the earning member etc. 2. In exceptional cases, benefit of compassionate appointment may be extended to son/daughter/near relative of government servant retired on medical grounds. This concession will not, however be extended to cases where government servant has retired on or after attaining age of 55 years in the case of Group C employees and 57 years in the case of Group D employees. 3. The appointment of son/daughter/near relative of the deceased employee may also be considered by relaxing the maximum age limit in deserving cases. 4. The relaxation of minimum educational qualification will however, be considered only for appointment at the lowest level i.e. for Group D and Clerks post only by the competent authority. The relaxation will be permitted only for a maximum period of 2 years and if during this period the applicant is not able to acquire the minimum qualification for the post in which he/she is appointed, his/her service will be liable to be terminated. In case of failure to qualify in the requisite type test, the Clerk/Typist would not earn any increments, confirmation and promotion till he/she qualifies in the type test. Note: In the case of appointment of widow of deceased government servant as peon (Group D) on compassionate grounds, she may be exempted from the requirement of educational qualification. Principal Director of Audit, Central Railway 74 5. Compassionate appointment should normally be considered if requests are received within a reasonable time and in exceptional cases within 5 years. Any relaxation beyond this period may be considered very rarely. 6. In case of a ward below 18 years of age and who alone is available for employment, he/she should apply for job as soon as he/she attains the age of 18 years. 7. The number of posts to be earmarked for compassionate appointments should not exceed substantially and significantly i.e.50% of the vacancies on any particular occasion, after allowing for other reservations like those for SC/ST handicapped persons etc. in each cadre. (Authority: CAG's letters no 2844-NGEII/52-76/1KW/NGE III dated 1.1.79; 801-N.3/52-84/Zone -3 dated 14.4.82; 280-N.3/52-84/Zone 14 dated 29.1.85; 3548-N.3/52-84/Zone.14 dated 14.10.85; 1659-NGE3/57-86/Zone 1 dated 20.5.1986; and 1145-NGE III/37-86/Zone-2-Vol.I dated 4.4.88) 161. Appointment of Welfare Assistant: One post of Welfare Assistant in the scale of Rs. 9300-34800 GP 4800 was sanctioned for this office wef March 1985 to assist in welfare activities of the office. The post will be ex-cadre and is to be filled in by deputation from eligible staff of this office to be operated at Mumbai. Those who have put in a minimum of 15 years of service as Auditor are eligible for the post. The main consideration for selection for the post will be suitability and aptitude of persons for welfare activities and not seniority. The selection will be made from among volunteers by the DPC. The person appointed will hold the post for a period not exceeding 4 years subject to their continued suitability. The person selected will be entitled either to deputation (duty) allowance or to draw the pay of the scale. (Authority: 1. CAG’s letter no. 1252-BRS/339-84-I dated 23.3.85; MOF OM No. FI (II) EIII)(B)75 dt. 7.11.75) 162. Employment of members of family of government servant in foreign organisations. Every member of this office, whose spouse or other member of his/her family desires to accept employment in any of the following categories of foreign organisation in India should ascertain from the administrative authority concerned the procedure to be followed before accepting such employment. 1. Foreign missions and related organisations like united States International Communications Agency, British Council, Co-operative for American Relief Everywhere, Catholic relief Services etc. 2. International organisations viz.UN and other related organisations or any other similar body of which India is a member. 3. Foreign Commercial Organisations. 2. Employment on commission or agency basis will also be deemed to be regular employment, but this will be limited to contracts or dealings with government departments and Public Sector undertakings. (Authority: CAG's letter no. 697-N-2/74-88 dt.26.8.88) 163. Promotion to Audit Officers cadre: From 1.3.84 promotion to the cadre of Audit Officers will be only from the cadre of Asstt.Audit Officers and all existing instructions will apply mutatis mutandis. The period of service as Asstt.Audit Officers under existing rules and orders for promotion as Audit Officer will be combined service as Section Officer (Audit) and as Asstt.Audit Officer. (Para 3.12 of manual of instructions for restructuring of cadres in IA&AD). 164. Promotion to the cadre of Section Officer (Paras 45 to 49 of Railway Audit Manual and paras 180 to 185 of MOS (Admn) Vol.I): Appointment to the Section Officer Grade is Office Manual 75 made on the basis of seniority cum merit on candidates passing Section Officer Grade Examination Part II. 165. Promotion to the cadre of Supervisor: A regular scheme of supervisor in Audit offices has been introduced from 1.4.89 which is limited to 8 percent of regular sanctioned posts of Section Officer/Assistant Audit Officers in Audit Offices as on 1.3.1989. The post (Group C) is on the standard scale of Rs.9300-34800 GP 4800. The post is a selection post and orders of Government of India, as applicable to IA&AD, issued from time to time on procedure for filling up selection posts will apply. Posts will be filled by promotion from 1. Senior Auditors with five years regular service in the grade who have passed departmental examination for Auditors or part I of SOGE failing which 2. Senior Auditors with a combined ten years regular service in the grade of senior Auditors and Auditors who have passed Departmental Examination for Auditors or Part I of SOGE failing which 3. Auditors with ten years regular service in the grade who have passed Departmental examination for Auditors or Part I of SOGE, or 4. By transfer on deputation from other Audit offices in IA&AD, Supervisors, subject to satisfying above requirements. The period of deputation will not ordinarily extend beyond 3 years. The eligibility criteria should be satisfied on crucial date i.e. 1st October preceding. Orders on reservations of SC/ST are applicable (attention para 9.2(c) and note p.116 of Brochure on reservation of SC/ST VIIth Ed) Note: Supervisor would not be eligible for promotion as Asstt.Audit officer, which is to be mentioned specifically in the appointment orders.) (Authority: CAG's no.290.N.2/154-88 dated 14.3.89) (Circular no.NGE/17/189) 166. Promotion of Auditors as Senior Auditors: Consequent on restructuring of cadres in IA&AD with effect from 1.3.84, 80% of sanctioned posts of Auditors will be in the grade of Senior Auditors and 20% will be in the grade of Auditors. The eligibility for promotion as Senior Auditors, in the grade of Rs.9300-34800 GP 4200 is completion 3 years regular service in the grade of Auditors i.e. Rs.5200-20200 GP 2800 on crucial date and those who passed Departmental Examination for Auditors. The crucial date for determining eligibility criteria would be 1st October preceding for the preparation of panel for operation from 1st January.(Authority: 1.3.2 of Manual of instructions for Restructuring of cadres in IA&AD and CAG's no.718. N2/41/84 dated 23.7.84) 167. Promotion of Clerks as Auditors: The promotion posts for Clerks as Auditors in the grade of Rs.5200-20200 GP 2800 will be 40% on seniority cum fitness basis from Clerks with 5 years service in the grade.The Limited Departmental competitive Examination for Auditors has been discontinued on restructuring of cadre in IA&AD i.e. with effect from 1.3.84. However, those who have already qualified in examination conducted upto 31.12.83 will be eligible for appointments, against existing roster points. Ten percent of vacancies in Auditors cadre will be filled in by promotion of graduate Group C clerks, with three years service on passing the Section Officer/Assistant Audit Officers Grade Examination part I. 2. Clerks/Group D appointed as Auditors on passing the Departmental Examination for Auditors/Part I of the Section Officer/Assistant Audit Officers Grade Examination will be eligible to Qualification pay of RS. 60/-p.m from date of appointment as Auditor on the analogy of the instructions contained in para 3.8.1 of Manual of Instructions on Restructuring. 3. Unless exempted from passing type test by orders of CAG, a clerk who had not qualified the prescribed type test will not be eligible for promotion by seniority or through any Departmental Examination vide headquarters circular no. 321-N2/46-87 dated 1.4.87. Principal Director of Audit, Central Railway 76 (Authority: CAG's no. 768-N-2/47-88 dtd,. 26.6.88 and MOF OM no. 798)-EIII/87 dated 4.10.88 received under CAG's no. 987-Audit I/84-86/IV 88(192) dated 13.10.88) 4. Unless exempted by orders issued by Comptroller & Auditor General a clerk (except one aged 45 years or more) who has not qualified in the type test will not be entitled to increments, confirmation promotion etc.(Authority; C&AG’s letter no. 290-N.2/46-87 dt. 27.3.87) 168. Promotion of Group D staff as Record Keeper: A new cadre of Record keeper (Rs.5200-20200 GP 1800) limited to 15% of posts of Group D has been introduced with effect from 1.3.84. This will be promotional post for all Group D with 7 years service possessing VIIIth standard pass qualification. Twenty percent of the regular posts of Record Keepers will be in the functional Selection Grade (Rs.950-20-1150-EB-25-1400). The qualifying test for Daftaries and departmental qualifying examination for non-matriculate Group D for promotion as clerks, stands abolished with effect from 1.3.1984. (Authority: Para 3.13.1,3.13.2,3.13.3 and 4.4 of manual of instructions for restructuring of Cadres and CAG's No.106-N2/74-83(i) dated 10.10.84 CAGs no.536-N.2/1-88 dated 12.6.89) 169. Promotion to the post of Personal Assistants/Sr.Personal Assistants: Stenographers in the grade of Rs.5200-20200 GP 2400 with three years regular service in the grade are eligible for promotion to post of Personal Assistant in the grade of Rs.9300-34800 GP 4200.The post shall be filled by promotion failing which by transfer on deputation. 2. The post of Senior Personal Assistant in the grade of Rs.9300-34800 GP 4200(Group B Gazetted) is filled by promotion failing which by transfer on deputation. For promotion to this post, eligibility is 1. Personal Assistant (Group C) in the grade of Rs. 9300-34800 GP 4200 with two years regular service in the grade failing which 2. Senior Personal Assistant (Group C) with seven years combined regular service as Senior Personal Assistant (Group C) (Authority: CAG's letter no. 94-97-N.2/104-84 dated 30.4.87;1237-GE/.II/83-87 dt. 28.3.89; and 2305-BRS/455-88-I dated 23.6.89) 170. Promotion to Selection Grade Promotion to Selection Grade in Record Keeper's cadre has been introduced with effect from 1.4.1984 at ten percent of the regular posts of Record keepers. This has now been raised to twenty percent. Record keepers with a minimum of 3 years regular service in the grade will be eligible for promotion to the selection grade on seniority cum fitness basis, which will be decided by a DPC. (Authority: CAG's letters No. 3945-N.2/74-83 dated 16.12.83; 105-N.2/1-88 dated 4.2.88; and 36-N.2/1-99 dated 12.6.89) 171. Limited Departmental Competitive Examination for Matriculate Group D staff for promotion as Clerk/Typist: Group D staff who are matriculate and who have put in 3 years continuous service on the first day of the month in which the examination is held are eligible to appear for the examination. The examination is normally held in the month of September every year. The examination will consist of following 3 written papers. English/Hindi 2 Hrs. 100 Marks Arithmetic 2 Hrs. 100 Marks General Knowledge & Office Procedure 1 Hr 100 Marks 2. Pass marks required is 40% in each of the papers. Candidate securing 45% marks in any paper would be exempted from appearing in that paper in subsequent examination. There is Office Manual 77 no limit on the number of chances. The candidates who pass the written papers of the examination become eligible for promotion as Clerk/Typists. They have to pass type test before becoming eligible for increments, confirmation and promotion. Preference in promotion will be given to those who have qualified in typing test before their promotion turn comes. They are however, eligible for exemption from passing typing test on their attaining the age of 45 years. (A u t h o r it y : C AG ' s le t t e r N o . 3 4 1 -Exam/161-83 dt. 30.4.1984; 692Exam/1 61-8 3 d t. 5.7 . 19 84; 83 3-Exa m/ 161 -8 3 da ted 2 3.7. 198 6; 30 1-N.2/4 687 d t . 1 . 4. 1 98 7; a nd 242 -E x am . 1 61 -8 3 v o l. d t . 2 3. 4 . 87) 172. Departm ental exam ination for promotion as Stenographers: An y perm an en t or t em po ra ry re gu la rly a pp oi nt e d C le rk / T y p is t w ho ha s co mplete d 2 yea rs con t in uo us service a s Clerk/Typist and wh o ha s p assed ma tricu la t io n exa min ation will be elig ible to ap pe ar in L imited De pa rtme nta l Co mpet itive Examina t ion for Clerk/Typists fo r promot io n a s Sten og ra ph ers. Th e e x aminat io n will be he ld on ce a ye ar in the mont h o f Aug us t . T he exa m in at i on c on s i st s of t w o p ar t s viz. Pa rt A-Writ t en Part A test and part B Sh orthand test. p ape r En glish I Ge ne ra l 1 Hr. 75 Marks 1 Hr. 50 Marks G e n e ra l 1 Hr. 75 Marks paper II Essay paper III knowle dg e Par t B Sho rth an d te st in En glish / Hin di (80 wo rd s pe r minu te) Ma rks Passage 10 min ute s 200 (Minimu m qu alif yin g marks will be 50 % ) Th e crucial date to determine the eligibilit y w i ll b e f i rst d ay o f t he mo nt h in wh ic h t he ex a m in at i on i s he ld . T he can dida t es will be allo wed 4 ch ance s in all to p ass th e e x aminatio n. (Autho rity; CAG' s le tter No . 1 86 -1 90 / N. 2/4 0-84 da ted 6 . 3.8 4; an d 125 9Exam/2 1-84 dat ed Sep t embe r’8 4) 173 . Training of staff para 61 of RAM: Au ditors who a re ne wly ap po in ted , will be g iven in ten s ive tra ining over a period of 3 mont hs, which ma y in clude tours to various Administrat i v e O f f i c e s , f o r t n ig h t l y t e s t s , ma in tainin g diarie s to b e sub mitte d to Tra in ing Su pe rint end en t wh o in tu rn wi l l su b m i t t h e s a m e t o D y. / Di re ct o r o f Au d i t . (A u t h o r it y : C & AG ' s n o . 1 6 6 5 - NG E I / 2 1 7 -6 0 d t . 1 9 . 8 . 8 0 ) 174 . I n c e nti v e for a c q u i r i n g hi ghe r qua l i f i c a ti o n : De partmen tal officials belo nging to Grou p B a nd non -g aze tted staff p assing I CWA a nd AICA /ACS are e ntitled to th e fo llo wing ince ntives: Examina t io n ICWA/AICWA(Fin al) Re c ru it s I ncen t ive Direct Rs 10,000/lumpsum (after su ccessfu l co mpletion of proba tion Co mpany Secretary Rs 6,000/- lu mpsum (a fter su ccessful qua lified direct recruits co mpletion of proba tion Principal Director of Audit, Central Railway 78 I n t e rme d i a t e I C WA / AI CA R s 4 00 0/ - l um ps u m Fin a l I C WA / AI C A Rs 8 0 0 0 / - l u m p su m Intermediate Secret a ry Company R s 2 00 0/ - l um ps u m Fin al C om pa ny S ec r et a ry R s 4 00 0/ - l um ps u m (A u t h o r it y : C A G ' s l e t t e r n o . 4 5 - N G E(ENTT)/ 45-93-III dated 24.01.1996). 1 7 5 . C o ns ti tut i o n o f O f fi c i a l L a n gu a g e s I m p l e me n ta ti o n Co mmi tte e . I n accordance with the instructions issu ed by the Min istry of Home Affa irs from time to time, the Off icial Lang uage Implementation Committee for this of f i c e i nc l u di ng Div i s io na l Sr/ Aud i t Of f i ce r h a s b e e n co n st it u t e d a s u n d e r: Prin c ip a l D ir e ct o r o f A u d it Dir ec t o r/ D e put y Dir ec t o r( Ad mn ) I / D irect o r/ D y Direc t o r (Tech )I I Chairman Sr/Audit Officer (Admn) Members Sr/ Au d i t O f f i c e r (Co ns t n . ) Sr/ Au d i t O f f i c e r ( Re p o rt s ) Sr/ Au d i t O f f i c e r (W& S) Pa re l All S r/ D i v i s io n a l A u d it O f f i c e r s Th e C om m it t ee i s h ea dq ua rt e re d at M um b ai a nd w i l l m ee t o nc e e v ery qua rt er i.e . in th e first wee k of Fe brua ry, Ma y, Aug ust and Nove mb er. 2. The fu nction s of th e Co mmittee are as un de r: 1. To review th e imp lemen tation of th e instruction of th e Ministry o f Home Af fairs rega rding u se of Hin di an d to take p re pa ra t ory and ot her mea s ures th erefo r. 2. T o r ev i ew t he qua r t erly p ro gr es s re po rt w h ic h a re s en t t o t he Ministry of Home Affairs and to ensure their timely submission. 3. To re view difficulties in the implemen tatio n o f instruction s r eg ar di ng t he u s e o f H in di an d t o m a k e s ug ge s t io ns / p ro po s als , whe re ne cessa ry to th e Ministry of Home Affa irs (throu gh the o ffice of the CAG). 4. To review the Impleme nta tio n of In st ru ctio ns of the Ministry o f Home Affa irs rega rding tra in ing of th e e mploye es in Hind i und er Hindi Te aching sche me. 5. To e nsu re tha t ap prop riat e nu mbe r o f emplo yees is relea sed for un de rg oing training in Hindi, Typ ewriting an d Hind i Sten og ra ph y. Th e Commit t ee sh ould su bmit th e Min ute s o f t he mee t ing in Hin di (Devn ag ri ) a nd Eng l ish t o t he C AG N ew D el hi i n t he 2n d w ee k o f F eb ru ar y , Ma y, Au gust and November.(Au/Admn/VI-12/orders Pt.IV/76-77/4104 dated 24.7 . 19 76 ) 3. Use of Hin di in d ay to da y work: Th e fo llo win g inst ru ctio ns sh ou ld be borne in mind . 1 . Small letters like acknowle dgements, reminders etc.should be sent in Hindi. Office Manual 79 2 . Office o rders re ga rd ing sa nction to lea ve, po sting a nd tra nsfe r o f s t a f f s ho ul d b e i ssued in Hindi. 3 . Eff orts should be made to issue Par t I I o f t h e I n s p e c t i o n R e p o rt s in Hindi. 4 . All staff should utilise bilingual o r Hin di f o rms s u pp lied b y t he Railway Administrat ion. 5 . Su fficie nt nu mb ers o f copie s of th e boo ks " Ka rya la ya Sa hayika" sho uld be ma de ava ila ble to sect io ns a nd divisio ns to fa cilitate use of Hin di in th eir d aily corre spo nde nce . Co mpen dium o f orde rs re gard in g u s e o f Hin di in o fficia l ma tters h as b een su pp lie d t o al l s e c t i ons . T hi s c om pe nd iu m c o nt a in s t h e c on s t i t ut i on al provisio ns gist of o fficia l lan gu age Act.1 963 an d furthe r o rd ers issu ed b y the Government of India from time to time. Th e instruction s co nta ined t here in s ho ul d b e c o mp lie d w i t h s t r i c t ly. 4. T ra in in g of s t a f f i n H i nd i: T he A dm i nis t ra t i on Se c t i on s h ould a rr an ge t o tra in all th e staff in Hin di by spo nso ring the ca nd id ate s fo r va riou s examina t io ns con du ct ed by th e Ce ntral Hin di Te ach in g Sch eme of the G ov e rn me nt of I n dia. T he s t af f s ho ul d b e d ep ut e d t o t h e t r a in in g c l a s se s co nd ucte d b y the Railwa y Ad ministration . 5. In cent ive s on pa ssin g th e Hind i, th e Hind i typewritin g a nd the Hin di st eno grap hy e xaminat io ns: f o r v a rio u s i n c e n t i v e s g ra n t e d t o t h e s t a f f o n passing the h in di examina t ions men t io ne d ab ove , p lease se e g . o.i dep artmen t o f official lan gu ag e o.m. no .12 014 /2/ 76-ol(d) d ate d 2. 9.1 976 date d 2 . 9. 197 6. Principal Director of Audit, Central Railway 80 CHAPTER V G ENERAL AUDIT PROCEDURE 176 . G e n e r a l . Ge ne ra l prin ciples a nd rules o f a ud it ap plica ble to differen t cla sses of tra nsa ctio ns laid do wn in th e CAG' s MSO (Tech )I to th e e x ten t t hey c a n b e a pp li ed t o t he ra ilw ay a ud it a nd de t ai l ed in s t ru c t i ons co nt a i ned in t he Se cre t Me m or an dum o f I ns t r u ct io ns r eg ar di ng t he ext a nt o f Aud it (M O I ) a n d C h a p t e r VI I I t o XI of the RAM should be followed. 177 . Programme of Audit. Instruction s con t aine d in pa ra s 2 a nd 3 o f Ch ap ter I of Me mo rand um o f In struct ion s rega rd ing the Ext ent of au dit (Railway Au dit) an d Paras 1 22& 11 9 o f RAM sho uld b e fo llo wed. No n ew ite m of fina ncial tran saction which is no t cove re d b y existing ite ms in the prescrib ed prog ra mme of au dit sh ou ld be a llowe d t o e scap e a ud it scru t in y and if an y such ite m is met with it sho uld be b roug ht to th e no tice o f Prin cip al Dire ct or of Aud it f or arra ng in g its a udit. 178 . Periodi city of Audit Erro r! Bookma rk no t de fin ed .. Para 1 24 of RAM la ys down that Pr.Director of Audi t should fix after taking into co nside ra t ion lo cal circu mst ance s da tes b y which aud it of vario us reco rd s and d ocume nts sh ou ld b e ta ken up a nd comple ted . Th e dat es o n wh ich va rio us acco unts reco rd s a nd d ocu me nts will be mad e ava ila ble for au dit sh ould be settled with Chief Accounts O f f i ce rs. Acco rd i n g l y, t h e f o llo wi ng proced ure is p re scribe d. 2. In the case of docu men ts au dited eve ry mo nth , au dit is do ne in the third fo llowing mon t h e . g. au dit o f vou che rs/d ocu me nts perta in in g Janu ary is d on e i n A pr il . T h e f o llo wi n g h ow ev e r, a re t h e ex c e pt i on s . 1 . San c tio ns rece ive d in a mon t h a re aud ited d uring th e fo llowing month. 2 . Co mpletion Rep orts sa nction ed in a mo nth a re au dite d d uring the f ol lo w in g m on t h. 3 . All it ems o f Traff ic Au dit Pro gramme are au dited in th e fou rth f ollo win g mo nth excep t review o f Arbitration case s an d Co urt j u dge m en t s c as es deci de d a ga in s t R ai l wa y s . 4 . All it ems o f Co nstruction Aud it sectio n wh ich are aud ited in the f ourth following mo nth . 5 . Re vie w of Arbitratio n case s and C ou rt j ud ge me nt s c a s es de c i ded a ga in st Railways are aud ited during the following mo nth 3. In th e ca se of d ocu me nts a ud ite d pe rio dically t he fo llo win g pro cedu re is s e t o u t . a ) I t ems wh ich do n ot d ep end on closin g of March Accoun ts: These i t e ms s h ou ld be c o mp et e d w i t hi n a p eriod o f three month s i. e. an nu al ite ms a s we ll a s half yea rly items fo r th e ha lf ye ar en ding 31 st Ma rch sh ou ld be complete d b y 30t h Jun e a nd a rre ars wo uld b e recko ned f ro m this da te in the Prog re ss Repo rt Registe r. Similarly, for h alf ye ar en ding 30 th Sep t emb er, the work sho uld b e co mplete d b efo re 3 1s t D e c em be r. T h e a ud it o f t he s e i t e ms s h ou ld be dis t rib ut ed ev e nl y d uring the wh ole period to a void the ir be ing accumu la ted at t he end of the year. b ) I t ems wh ich de pe nd on th e clo sin g of Ma rch Acco un ts: No rigid due d ate ca n be laid down fo r the co mp le tion of au dit. This wo rk ha s, however, to be completed well in t ime before the due date for the issu e of the au dit certifica t e. 179. Sel ection of documents for Audit: Instruction s cont aine d in Ch ap ter X of Ra ilway Au dit Man ual sh ould be refe rre d to . The fo llo win g instruction s are laid d own . a) The aud it wo rk is to be co ndu cted und er the p erson al supe rvision o f th e Ga zette d Off ice r in ch arge and diffe re nt classe s of vo uch ers and do c um en t t o b e a ud it e d d ur in g a mo nt h s ho ul d b e s el e c t ed und er his/h er p erson al supe rvision in n o case sh ou ld th e sele ctio n be entrusted to other staff. b) In se le cting th e vou che rs for au dit, the officers should aim as far as po ssible at a me tho d un de r which th e a ccoun ts of a ll the spen ding D ep ar t m en t s c o m e un de r au dit w it hi n a p re s c ri be d pe r io di c it y o f au dit a nd t ha t n o p ar t icu la r s c la s s of v ou c hers l ef t un au dit ed . I n sele ctin g th e vou c he rs fo r a ud it it is esse ntial to avoid t he d an ge r o f such select io n becoming mechanical. Atte ntion sho uld be specia lly de vote d to t he au dit o f items o f u nusu al, e xpe nd itu re a nd imp ortan t v ou c he rs a nd re c or ds . c) In cases where selection of vouchers is based on units e.g. selection of Pay-bills in establishment and Workshop sections, muster rolls in Workshop Section, unpaid wages statements in Books and Budget Section contingent vouchers in Expenditure Section, Station accounts in traffic section arrangement of units should be reviewed by the AAUO/SO (A) of each section once a year before audit of accounts for April is taken in hand so as to keep the list of units up to date. A record of such a review should be kept in the selection Register. d) When the number of vouchers to be selected for audit in accordance with the percentage fixed in the programme of audit is a fraction under one, one voucher should be selected for check. This principle should be applied for current and Post Review also. e) Selection of paid vouchers is normally made with reference to the Abstract of Bills passed (A 207). Where selection is made from the register of Bills received (A 204) a half-yearly reconciliation between these two Registers is to be done. The month of account for audit is taken as the month in which the payment is made date of CO7 irrespective of the period to which the payment relates. f) The system of selection should involve minimum labour (cf para 146-RAM). As far as practicable, the Au6 and CO7 Registers maintained by the Accounts department should be put up to the Officer alongwith the selection register who will mark the vouchers selected for audit in the selection register direct. Copying of the vouchers in rough sheets should be avoided to the extent feasible. In cases where this is not feasible, a rough selection register may be maintained wherein the CO.7 and amount of the vouchers should be first listed separately for each item in this register. g) The total number of vouchers in each category, the extent of audit and the No.of vouchers to be selected should be indicated. The register should then be put up to AAuo/Branch Officer for selection. A few pages should be allotted for each item of audit in this register and the selection for the same item from month to month should be obtained consecutively. In respect of items of audit for which a unit or nits are selected a complete list of units may be entered at one place and the selections ob tain ed aga in st th e u nits from mont h to month . Principal Director of Audit, Central Railway 82 h) In respect of items in which the extent of check is 100% the vouchers should be copied down directly in the selection registers from the Au 6 Registers, Index Registers etc. i) Cop ie s o f san c tion s of Preside nt, Railwa y Bo ard, GM HOD and ot hers wh ich are re ceived in th is office are e nte re d dire ctly in separate section-wise registers. The selection of sanctions should be ma rk ed in this register itself. The s e re gisters serve as selection r e g is t e rs f o r s a n c t io n s. 2. The select io n shou ld be ta ken be fore the 1 5th o f the p re vio us mo nth so that the se lected do cumen t s may be ob taine d from th e Acco un ts office to co mme nce au dit in time . Full particulars of Pay-bills a mou nt o f vouch ers etc.sh ould be ent ered in the selection reg iste r. 3. Se lection Re gister. The format fo r t h e S el ec t i on R eg is t e r s h ou ld be a s pres c r ib ed i n A nne x ur e 4 2 t o t h is M an ua l. T he pe rc e nt a ge/ q ua nt u m o f aud it as note d on the to p p ag es in the sele ctio n re gisters a gain st the va r io us c a t eg or i es o f d oc u me nt s f or c u rren t a nd p os t re v ie w s h ould be in varia bly at t est e d by AAu O/ SO (A ). (Para 2 POO 1 104 da ted 25 .5.8 5). 180 . Requisiti oning and Returning of vouchers. Sections should make their own arrang emen ts fo r obta ining vo u c hers e t c . f o r a ud it . R equ i s it i on s ca lling fo r vo uch ers an d docu ment s selecte d for au dit sh ou ld be sen t to Accou nts Off ice with ou t dela y, over sign atu re of Section Officer/Assistan t Audit Officer. Requisitions f or depart men t al files sh ou ld b e se nt o v er sig nat ure o f Bran c h O f f ic e r e nd or s in g a c op y t o A c c ou nt s O f f ic e r. 2. O n 5th of the mo nth in wh ich a ud it is to be co ndu cted , AAu O /SO of the se c t i o n s h o u ld re v ie w t he p o si t io n and list out vouchers still wanting and re port the position to Branch Officer. 3. Vo uche rs a nd files sho uld b e re turne d to t he a ccoun ts office a s so on a s they h ave be en ch ecke d and a s f ar a s p ossible the vouch ers of on e mo nth sh ou ld be re t ur ne d b ef o re t ho s e of a no t he r m on t h a re c al l ed f or ex c ep t t h o s e r e q u i re d f o r P o s t R e v ie w b y S O / G O . 181 . Audit Enfa cement (see para 12 6 o f RAM): All vouch ers/do cumen ts aud ited e ith er at Hea d Qu arters or d uring loca l in sp ectio ns sho uld be st ampe d with a sp ecial stamp Aud ite d a nd initialled and da ted by the Aud it ors co nce rn ed. (excep t Provide nt fun d Le dg er cards, in which case a re cord of PF card s audited should be ma in tain ed in Se le ction Re giste r). Wh en n ominal an d nu merica l a udit are co ndu cted for the sa me mo nth s , audit Enfacement separately for nominal check is not necessary (CAG's le tter 78 0-TAI-83 -7 2 d ate d 4 . 4. 1 9 7 2 . A u / C O R / C o n . / 3 / 4 Pt . VI ) . 2. Administra tion Sectio n will su pp ly th e Stamp for th is purpo se wh ich sh ou ld b e u nd er p er s ona l c us t o dy of A Au O / SO i n c h arge o f t h e S ec t i on . Th e AAuO/SO sho uld en sure by test c h ec k t ha t d oc u me nt s a re d ul y st ampe d a nd in itia lled . (see Ch ap ter on ECPA Se ctio n). 182. Com pletion of Audi t. I m m ed ia t ely af t e r a ud it o f an i t e m i s co mplete d, th e staff sh ou ld re cord in Se le ctio n Reg ist er th eir date d initials against the it em completed to show wh en the work was comple ted. Particulars o f Vo uch ers or d ocume nts n ot ma de ava ila ble a nd he nce no t aud ited shou ld be ind ica ted cle arly in the re giste r. 2. According to p ara 1 51 of RAM a fter Aud it ors ha ve complet ed au dit o f docu ment s, Se ctio n O ffice r/Assistan t Au di t O f f ice rs sh o u ld re vi e w t h e m t o Office Manual 83 se e t h at n o i m po rt a nt p oi nt s h av e es c a ped t he Au dit or ’ s s c ru t in y ; t he i t ems se lecte d fo r his/he r cu rren t review sh ou ld b e a udite d in de tail. The gen eral review sh ou ld b e d irecte d to e nsu re th at vo uch ers du e fo r au dit have be en re ce ived a nd du ly a ud ite d b y the Aud itor. For this pu rpose , Select io n Re giste rs shou ld be so mainta ined th at th ey g ive a complete list of vo uch ers etc. which we re se le cted f or a ud it & wh ich h av e be en au dit ed by t he au dito r. To a chieve th is, it is ne cessa ry tha t n ot on ly u nit se lected for a udit du ring th e mo nth is in dicate d in th e Select io n Re gister and atte sted by all con c erne d bu t also a list of all vou che rs coming un de r tha t unit i s s ho wn in t he R eg is t e r a nd at t e s t ed . T hus i n t he ca s e o f Establis hment Bills audit, it will not b e s u f f i c i e n t i f t h e u n i t a lo n e i s in dicted in the re giste r b ut it will be ne cessary to in corpo ra t e th erein a co m pl et e lis t o f al l t he Au6 s an d C O 7 s involved. Simila rly in the case of accounts of subscrib ers to SRPF etc, it will not suffice if me rely a re f er en c e t o t h e d ed uc t i on l is t i s qu ot e d i n t he Se l ec t i on R eg is t e r bu t i t will be ne cessa ry to in corpo ra t e a list o f th e employe es wh ose a ccoun ts have be en che c ke d d uring the mo nth . 3. As reg ards Traffic Au dit Se ctio ns, p ro ced ure o utlined ab ove shou ld be followed mutatis mutandis with relaxations detailed below: a ) In respect of parcel wa y Bills and Goods invoices, name of stations a nd n um be r o f w a y b i lls et c . m ay du ly be me nt i on ed i n S el ec t i on Re gister. In resp ect o f wa rran ts an d cred it n ote s, name of St ation and total number of Vouchers together with Bill no. and date may be me ntion ed in the Re gister. This relax a t io n m ay b e a ppl i ed t o a ll s uc h traf fic au dit items in re spe c t o f which it is no t p ossible to app ly the p ro v isi o ns m e nt i on ed a bove . T he i t ems lis t ed b y a ud it o r s i n t hi s ma nne r sh ou ld be g en erally reviewe d by Section Officer/Assistant A u d it O f f ic e rs t o e n s u re t h a t imp ortant checks have not been omitted b y t he Au dit or s i n r es pe c t of it e ms w h ic h are n ot s e l ec t e d f o r c u rren t Review. 4. A ud it or c on c erne d is re s po ns i ble f or a ud it of al l d oc um e nt s wh ich a re allo tted to him/he r for a ud it unle ss he /she h as rep orted in writing tha t he/sh e h as no t aud it ed, ce rta in spe c ifie d do cumen t s with re ason s the re f or. Such rep orts and t he orde rs th ereo n shou ld be filed a lo ng with o rd ers re la t in g t o s e l e c t io n o f s p e c if i c d o c u me n t s . 4. Vo uche rs s e l ec t e d pu re l y f or t r ac i ng s ho ul d b ea r t h e e nf a c em en t `Trac e d' . 6. An item of work ca nn ot be co ns ide re d as ha vin g be en co mp le ted until cu rre nt re view o f vou ch ers has b een complete d an d te st a ud it n ote , if an y, on the re sults of au dit issu ed . A Cert if i c a t e o f c om p le t io n of a ud it and re vie w shou ld b e give n in Selection Register in the following form: ‘Certifie d tha t Selectio n of Vou c he rs du e for a ud it fo r the mo nth ha s b ee n complete d an d tha t a ll vouch ers d ocu me nts select ed fo r au dit a nd re v ie w have be en a ud it ed a nd re v ie w ed and t ho s e r eq ui r ed t o be s u b m i t t e d t o S O / G O f o r r e v iew have been submit ted’. ( C AG 's l e t t e r N o . 1 2 1 3 -RAI / 173/64 dated 24.4.1964) 5. All items for wh ich gen eral re vie w h as be en p re scribe d exce pting those t o b e o ri gi na l ly a udit e d by A Au O / SO / BO may b e e ntruste d to au ditor an d co ncu rren t ly re vie wed by AAuO /SO. On completio n o f pe rio dical Principal Director of Audit, Central Railway 84 it ems viz.q ua rte rly, ha lf-yea rly an d yea rly) a no te sho uld b e pu t up to Bra n c h O f f ic e r i n d i c a t i n g t h e re s u l t o f a u d i t . 183 . O r iginal Audit by gazetted Officers and AAuo/Section Officer/Assistant Audit Officers (para 140 of RAM) par a 6 of Sec r et memorandum . G O s an d SOs in ch arge o f au ditin g se ctio ns are req uired to do o rigin al au dit wo rk a moun ting t o no t less tha n two days wo rk in a mo nth as p art o f th eir du tie s , th e pe rce nta ge of che ck be in g tha t p re scribe d in the Secret Me moran dum o f instruction s. 2. For this pu rp ose se pa ra te list o f orig inal au dit work are p re pared for the followin g sectio ns. 1. E HQ 6 . D i v i s io na l A ud it 2. X HQ 7 . Co nstruction Au dit 3. B B H Q 8 . T ra f f ic Au d it 4. MTP 9. S t o r e s A u d it 5. W & S Au dit 3. T he s e it e m s are t o be g ot app r ov ed b y P r. D i re c t or o f A ud it , b y C O R Sectio n, on e ite m from this list shou ld be sele cted b y th e bran ch Officer for the o rig in al Aud it to be do ne b y AA uO/Section Officer(A)/branch Officer by 2 5th o f e v ery mon t h for se le ction of items f or Origina l Au dit in the follo win g mo nth. As q uan tum o f work in volved in an item will be dep en de nt up on actu al numb er of tran sa c t i on s , v ouch er s , et c . w h ich v ar ie s fro m section to sectio n a nd from p eriod to pe riod , it is p ossible tha t so me it e m s m ay n ot w or k u pt o t w o da y s w o rk . To make up such deficiency, add itio na l items fro m th e list sho uld b e selecte d an d au dited b y AAu O/ Se ct ion Of f icer (A )/ Branch Of f icer. 4. A r eg is t e r of ori gi na l aud i t s ho ul d be m ai nt ai ne d b y e ac h AA uO / S ec t i on O f f i c e r / As s i s t a n t Aud it O f f i ce r / Bra n c h Officer in the p ro f orma prescribed in ann exu re 54 to th is Ma nu al. 5. In o rd er to en ab le t he COR sectio n to review the se lists (c/f pa ra 141 RA M) the Branch O fficers shoul d s en d t h eir s ug ge s t io ns f or add itio ns/d eletion s etc.t o COR sectio n b y 15t h o f Febru ary every ye ar. the appro ved lists should be circulated by the COR sect io n to all sections/divis ions in April every year. 184 . Curre nt Re vie w (Pa ra s 15 1-15 3 of RAM)-Aud it work d on e b y Aud it or s / AAu os/ S ec t i on O f f i c er s hou l d be c ur re nt r ev i ewe d b y S ec t i on O f f i c e r / As s i s t a n t Au d i t O f f ic e r/ B ra n c h Officer respectively. As soon as aud it is complete d by au ditor, AAuO/Section O fficer sh ou ld o bta in se lections for current re view from Br anch Officer in a separate re gister ma in tained in the form prescrib ed i n a nne x ur e 4 3 o f t hi s M an ua l. Office Manual 85 2. As a nd wh en o rig in al au dit is co mplete d b y AAu O/SO the vo uch ers, docu ment s an d th e Origina l Aud it Registe r sh ou ld be sub mitte d t o th e BO for cu rre nt review. Pa rticula rs o f vouch ers curre nt reviewe d, an d cu rren t re v ie w r em a rk s o f B O s ho ul d b e no t ed in O r ig in al Au dit R eg is t e r o f SO / A Au O . 185 . Pos t r e vi e w Erro r! Boo kmark not d efin ed. Par a s 1 44 . 610 - MS O ( Te ch ) an d Pa r a 1 54 -1 60 RAM ) . En tire work do ne in a se ctio n sh ou ld be su bject ed t o p ost review twice a yea r once by AAu O /SO an d o nce by BO. Post re view is d on e in th e mo nth fo llowing th e mo nth o f a udit. Fo r this purpo se all mon t hly items of aud it work in a Se ctio n is divided int o t we lve (1 2) un its a nd on e un it ea ch is sele c t e d f o r p os t r ev i e w b y AA uO / S O / B O every mont h. Every section should have a sepa ra te list of p erio dical items and the current re vie w/po st re view sho uld be arra nge d as an d wh en au dit of these items is complet ed. Selectio n of u nit fo r p ost review by SO will be ma de by BO. Selectio n fo r o rig in al a udit, p ost re vie w an d cu rren t re v ie w b y BO i s don e b y B O s t he m se lves. For orig in al Au dit an d Po st re v ie w by BO s , S el ec t i on i s ma de f r om t he l i s t o f it e m s a pprove d by t he Pr. Di r e c t o r o f Au d i t . 2. O ne half o f p ost review d on e b y BO sho uld b e devo t ed to a rech eck o f cu rrent review done by SO/AAuO. As in the case of o rigin al au dit, the B.Os sho uld sen d the ir su gg estion s fo r a ddition s o r de le tion s to list o f ite ms for post review to COR Sect io n by 15th o f Fe brua ry ea ch year. The app ro ved list will b e circulate d b y CO R in Ap ril ea ch ye ar. 3. Sele ctio n of Se ction Of f icer/Assistant Audit Officers f or Post Review for hea dq ua rte rs au dit se ctio ns and Mu mb ai d iv i s i on w i ll b e ma de b y C O R se c t i on . A s f a r a s o t he r D i v is i o ns are co ncerne d, se le ctio n o f SO/AAuo s will be ma de by Bra nch O fficer. 4. Su bmissio n o f Re gisters of orig in al au dit, curren t re vie w and po st re vie w by GO an d po st review re gister of SO: The Post Re view Re gister sh ou ld be mainta in ed in the form p rescrib ed in an nexu re 54 to th is ma nu al. All sectio ns and Divisions which are un de r d ire ct charge of Pr. Directo r o f Aud it shou ld sub mit th ese re gisters to Pr.Directo r o f Au dit. Section s and Divisio ns which are un der dire ct ch arge a nd su pe rvisory ch arge o f Dy .Director should put up these regist ers to Dy . Director. However, when there a re imp ortan t results of orig in al au dit/cu rren t an d Po st Reviews the re gisters should be submitted t o P r. D i r e c t o r o f Au d i t . 5. All se ctio ns an d Division s wh ic h are un de r sup erviso ry ch arge o f Dy . D i r ec t or a nd S ec t i on s w hi c h are o ut o f M um ba i a nd are u nd er dire c t ch arge of Pr.Direct or of Aud it sho uld se nd a mo nth ly re port to Pr.Dire ctor of A ud it t hr o ugh C O R s ec t i on bri ng in g out c as e s o f d el ay s / a rr ea rs in su bmissio n of re turns a long with mon t hl y a nd qu arterly arrea r re port in the sa m e f o rm i n w h ic h ar r ears a re re flected in cale ndar of Returns. 186. Maintenanc e and submission of other registers. For all other re gisters like p ro gress re po rt re gister, Register of Recoveries etc. wh ich re quir e t o b e m ai n t ai ne d b y t he s e c t io n, in stru ctio ns c ont ained in Ch ap ter XXI should be referred. 187 . Monthly Ar rears Report. Mont hly Arrea rs re po rt sho uld be su bmitted to re ach co-ordina t io n sectio n on 7 t h o f every mont h (Th e Division s sh ou ld desp atch th e retu rn o n 6 t h of th e following mon t h). Th e fo rm in wh ich this re port sh ou ld be sen t is g iven as An nexure 15 to this Manual). Principal Director of Audit, Central Railway 86 188 . Quarterl y Arrear Report. Arrear Report for quarters ending 30th Ju ne , 30th Sep t emb er, 3 1st Dece mb er and 31st March is req uire d to be submitted to CAG by COR section. All sections and Divisions should there f ore submit t heir a rrea rs repo rts to COR section b y 5 t h of July, O c t ob er , J an ua ry a nd Ap ril in the following form. 1. Certificate of co mp letion of a ud it (An ne xure 1 7) 2. Proforma A in 8 sections s per CAG's letter no.289-RAI/RR-2/10/87 dat e d 2 2. 5. 87. T he 3 f or m s p re s c ri be d f or s ec t i on I A are giv e n in Ann e x u re 1 6 t o t h i s Ma n u a l . Fo rm No.I II. St at ement sh owing the items of arre ars as on (o nly it ems of arre ars of m o re t ha n 1 2 h ou rs e ac h i n a m ont h an d i t e ms in ar r ears f o r a lo ng time should be includ ed in this sta t emen t. Fo rm No.IV. Statement of arrears in correspondence (lett ers received from CAG & GOI u pto 15 th o f previou s mon t h sh ould be in clu de d). The fo rms o f t he qu arterly a rrea r re po rt are given a s a nn exu re 1 6 to this Ma nu al. (A uthority: Au/Cor/V/1/ord ers dat ed 5.9. 8 0 Au / R e p / V/ 1 / o r de rs / 1 4 5 0 d a t e d 8.6. 87, 29 .7.8 7 a nd 1 9.8 .87 ) 189.Raising and pursuance of audit objecti ons: See also instructions co nta ined in Cha pte r XXII of th e Ra ilway Audit Ma nua l. 2. R ec o ve r ie s w h ic h c om e w it hi n t he po we rs o f w ai v er of t he Pr. D irec t o r o f Aud it . Obje ct io ns co ming un de r th e a bo ve cate go ry ma y be forma lly raised and communicated to the FA&CAO for furth er ne cessary actio n. Th ey n eed not be in clu de d e ith er in Pa rt I or II o f e ith er au dit n ote s or Insp ection re ports an d the ir dispo s al n ee d not b e watch ed b y Audit bu t simulta neo usly with the communica tio n of the above points to the FA & CAO th e re cove ries ma y b e e nte re d in a reg iste r an d submitted to Pr. Di r e c t o r o f Au d i t f o r h is / h e r f o rma l w a ive r. 3. O t he r ob je ctio ns tha t d o n ot come with in t he po wers of waiver o f Pr.Directo r o f au dit may b e inco rp orate d in ro ugh au dit n otes. These ro ugh a udit n ote s sho uld be signe d by AAuO /Bran ch Of fice r and se nt to their counterp arts in Accounts office demi-officia lly. Rou gh au dit note s/draf t insp ection re ports con v eying rou t in e remarks ma y b e issu ed b y AAu O/Se ction Officer. They sho uld be discussed with Accounts Officers wit h in a f or t n ig ht a nd o bj ec t i on s re la t i ng t o Acco un ts o ffice sh ould a s far as po ssib le b e set t le d o n th e sp ot. Wh ere remed ial action lie s with an Execu t ive O fficer loca ted a t He adq ua rte rs the sa me proce dure sho uld be followed by inviting the officer for d i s c u s s i o n . I n t h e s e d is c u s s io n s t h e y sh ou ld try to settle a s ma ny items as po ssible. Min ute s of such dis c us s i ons i nd ic a t in g ac t i o n t o be t a k en b y A c c oun t s , au dit a nd e x ecu t iv e sh ou ld b e p re pa re d a nd s i gn ed by r ep r esen t at i v es of t he t hr ee De pa rtme nts. Poin ts which remain un settled a fter the se d iscussions (due to diffe re nce s in opinio n or for wan t of fu rth er info rmatio n) and imp ortan t proced ural de fects sh ou ld alon e b e issued in the form of a ud it o bjection s either part I or part II. 190 . Drafting of obj ections: In stru ction s con t aine d in pa ra 79 9 of MSO (T) a nd pa ra 4 61 o f R AM s hou l d b e f ol l ow ed . O bj ec t i on s p ro po s ed t o be in cluded in special letters, Part I Au d it Note s/inspe ction repo rts sh ould be se lf con t ain ed an d a ll supp orting do cumen t s to ge the r with releva nt pap ers Office Manual 87 co nta ining railwa y a dmin ist ra tio n' s re ply, if an y, to o rigina l roug h Au dit No tes, minutes of discussion, if an y held, should be submitted for app ro val, throu gh Re po rt se ctio n. Re port sectio n will be resp on sib le for sc rutiny of such objections, before submissio n t o Pr Dire ctor of aud it. 2. Clo s in g of o bjection s: Spe cial let t ers sh ou ld be close d on ly with the app ro v al o f D y . D i re c t or of Aud it / Dir ec t or of audit. However, part I Audit No t es / I n s pe c t io n Re po rt s ma y b e d is p ose d o f b y t he c on c erne d branch officers. (POO 1 051 of 15. 1.19 79 an d 1 05 2 o f 23 .1.7 9) 191 . Cha n ge s i n for m an d cl a ss i fi c at i o n ( 40 8 o f R A M) . Al l a ud it i ng se c t i on s s ho ul d s en d t o Exp en di t ure (HQrs) Section copies of all railway Boa rd ' s le tters, au tho rising ch an ges in fo rm an d classification , re ceived b y them for reco rd in Cen t ra l Reg ist er maint ained b y th at sectio n to en able it t o c h ec k c on s ol i dat ed st at e me nt r ec e i ve d f ro m F A &CAO eac h y ea r. 192 . Difference of opi ni on between Audit and Accounts or Exe cuti ve Erro r! B oo k ma rk n ot d ef ine d. . se e pa ra s 47 9-482 of th e railwa y Aud it M an ua l. T he B ra nc h O f f i c er s s h ou ld b ri n g t o t h e no t ic e of t he De puty Director cases in which, the Accounts/Administration differ in prin cip le fro m th e po ints of view he ld by au dit or t here is a significan t diverge nce o f vie ws in th e matte r o f in terpret ation of orde rs o r justification of e xp en diture. Such case s would be pursue d o n th e line s in dicate d b y the De pu ty Directo r who wo uld co nsu lt th e Pr.Dire c tor of Audit whe re v er nece ssary. (POO 672 date d 29 .9.5 8) Instruction s g ive n in pa ra 1 34 o f t he RAM ma y also b e ke pt in mind . 193 . Audit of Appropr i ation Accounts Erro r! B oo kma rk n ot de f ined . . Au dit of A pp ro pr ia t i on Ac c ou nt s s hou l d b e d on e a s e x ped i t io us l y a s po s s ib le adh eri ng t o t he p ro gr am m e f i x ed b y C AG an d c i rcu la t ed t o a ll s ec t i on s and Div i s io ns by B oo k s & Bud ge t ( H Q rs) A ud it Se c t io n. T o w at c h t i m el y su bmission of these, sections/Division s shou ld make nece ssary en tries o f ite ms o f gran t/An nexu res re qu ired to b e de alt with by th em in the Ca lend ar of Retu rn s (if fo un d ne cessa ry sep arate ca lend ar of re turns may be ma in tained) to Books & Bud ge t Aud it se ctio n e very mo nth . (d uring first we ek) exp laining re aso ns fo r de la y in fina lisa tio n. Boo ks & Bud ge t (HQ rs) Aud it se ction sh ould su bmit the se re turns to Pr.Directo r o f au dit for in f ormat ion . 194 . Audit Certificate on March accounts. See pa ra 8 of ra ilway Au dit Ma nu al a nd no te given th ereu nd er. Afte r au dit of Ma rch a ccou nts, a cle ar aud it ce rtifica t e sho uld b e give wh ere a udit o bservat io ns do no t in an y wa y affect accura cy of accounts. As re gard s those it ems of arrears or obse rva tions wh ich pa rtially affe ct accura cy o f th e acco un ts, au dit ce r t if i c a t e m a y be qu al i f ie d if arre ars a re c hr on ic or a mo un t s i nv o lve d a re su bsta ntia l o r t he p oint s are o f exce ption al imp ortan ce. a) No n-ava ila bility of ce rta in vou cher s such as paysheets, contra ctors bills, pay-orders unpaid wages stat ements, claim cases, journal vouch ers etc. b) No n-prep aratio n of certain sub sid ia ry accounts such as capital & Re v en ue ac c ou nt s of r es i de nt i al b ui l di ng s , s t at e m ent of s t o re s t ra n s a c t io n s e t c . Principal Director of Audit, Central Railway 88 c) No n-comp le tio n of ce rtain subsidia ry re gister such as scale check re gister, re gister o f o verpa yme nts made , non -a lteration o f Pro vid en t Fu nd led ge rs, no n-issu e of an nu al sta t eme nt of Provide nt Fund subscribers etc. Separa te list s of suc h a rr ea rs s ho ul d, h ow ev e r, b e s en t alon gwith th e ce rtificate . 3. To en able Bo oks & Bu dge t se ction to se nd a co nsolida t ed ce rtificate to Co mp trolle r & Au ditor G ene ra l o f In dia, so as to re ach him b efo re 1 s t O c tob er o f e ach ye ar all sectio n/d ivisions./ branch officers sh ou ld send Aud it certificate to Books & Bu dg et section b efo re 15t h Sep t emb er a fter c o m pl et i on of a udit o f Ma rch Ac c ou nt s a nd a nn ua l i t ems b y t h at d at e . I f th e a ud it o f an y ite m cann ot b e co mp lete d eith er du e to arre ars in A c c ou nt s o f f i ce o r d ue t o non -a v ai l ab il i t y of v ouch er s t h e c e rt i f i c at e sh ou ld be qu alif ie d a nd complete lists o f all items in a rrea rs sh ou ld be se nt a lo ng with a ce rt ificat e in th e p ro f orma sh own b elow. List (A) showin g part iculars of items which directly affect accura cy of accounts Sec tion S r. n o Pa rt i c u la rs o f it ems in M on t h o f arrears a ccoun ts No . of vrs R e ma rk s List (B) sho win g a ll o t he r ite ms that do no t ha ve a d irect be arin g o n the ir accuracy. Sect ion S r. n o Pa rt icu la rs o f Mo nth of items in arrears a cco u n t s No .of vrs Remarks Sui t a bl e r em a rk s a s t o w he t he r t he de la y i n re s pect of it e m s i s c hr on i c or not i. e . w he t he r t he ar r ears a re s pr ea d o v er a nu mb er of y ea rs ( i f s o , t he deta ils there of) an d wh eth er th ey a re a re gu la r fea t ure shou ld b e g iven in the re marks colu mn o f th e p ro f orma. On rece ip t o f th ese state ment s from t he s ec t io ns , t he B oo k in g s ec t i on s h ou ld c o nso li da t e t he s t at e me nt s w it h the remarks of th e Se ctio ns an d su bmit th em to th e Pr.Dire c tor of au dit for orders as to the furt her action to be t a ke n . (PO O 6 3 1 d a t e d 1 9 . 3 . 5 7 ) 195 . Audi t of sanctions. All the sanctions accorded by the Presid ent, Ra ilw ay B oard a nd t h e G e ne ra l M an ag er re la t in g t o e i t he r H ea d Q u art er s of Divisio na l Offices are re ceived in He ad q uarte rs Sectio n in the first in stan ce. Th ey shou ld be e nte re d in a Re gister se pa ra tely for sa nction s accorde d by Railwa y Boa rd o r high er aut horitie s and G M vide a nne xure 46 t o 4 8 t o t hi s ma nu al. T he y s ho ul d b e a ud it e d w i t h r ef er ence t o pap ers availab le with FA&CAO and with re feren ce to ru le s on t he su bject a nd t hen passe d o n to th e division al o ffice fo r furthe r scru t in y in t he ligh t o f an y pap ers o r in f or m at i on w h ich m ay be l oc a lly a v ai l ab le i n t ha t o f f i c e. An y p o i n t s w h ich t h e d i v i s io n a l o f f ic e s ma y desire to raise in connect ion with t hes e s an c t i ons a r es ul t o f t h eir s c r ut i n y s hou l d b e p ut u p t o t he Pr. Di r e c t o r o f Au d i t / D y . D i re c t o r t hr o ugh t h e H ea dq ua rt e rs se c t i on f or orders. Sanctio ns whe re no pa pe rs a re ava ila ble in FA&CAO office, sh ou ld be sent to Divisional Audit Of fices for audit and scrutiny. Divisional Audit Offices ma y f urnish their re marks if an y, to t he HQ section for advice, if nece ssary. 2. Th e sa nctio n sh ou ld b e au dited with refe re nce to p aras 58 to 7 0 of the aud it Co de an d pa ra s 6,7 , 13 2,1 33, 202 an d 2 50 o f th e Railwa y Au dit Ma nu al. Sa nction s ha ving limited cu rren cy sho uld be trace d in to the re gister maintain ed for the purpose in the Accounts Office. Office Manual 89 3. San ctions issue d by th e Gen eral Man age r HOD sho uld n ot be ch allen ged in a udit with ou t th e kno wle dge o f Pr.Directo r of Au dit. (PO O 993 dt 17.4 . 73 ) 196 . Sancti ons accorded by author i ties subordinate to the G eneral Ma nager . Sa nction s a ccorde d by t he au tho rities sub ordina t e to GM re ceived in th is o ffice shou ld be t est che cked to the e xten t prescrib ed . Th e w o rk i s t o b e d one by t h e H ea dq ua rt e rs a ud it i n g s ec t io ns w hi c h s h ou ld ado pt t he follo win g p ro c ed ure. a) Th e san c tio ns re ceived from the Hea ds of Depa rtme nts sho uld be no ted in a se parat e re gister main taine d for th e pu rp ose vide a nne xure 62 to this Manual. b) On or be fore th e 5th of ea ch mon t h, th e san ctio ns rece ive d du rin g the previou s mon t h sh ou ld be g ro up ed divisio n-wise an d p ut up to the Branc h O f f i c er a lo ng w it h t he r eg is t e r f o r s el ec t i o n of t he s anc t i o ns f or aud it. c) San ctions sele cted fo r au dit shou ld be reta in ed b y h ea dq uarte rs section for au dit an d th e rest shou ld b e sen t to divisio ns con cerne d. d) Th e se le cted sa nction s shou ld be aud ited in th e same ma nn er a s Ra ilwa y Boa rd ' s an d Ge ne ra l Ma na ge r' s sa nction s. 2. Divisio ns sh ould ad opt a similar p ro ced ure in re spect of sa nction s accorded by the Divisional Railway Ma nager. 3. Sa nction s issu ed b y au tho rity of t he ran k of th e DRM or Dy. HO D sh ou ld not be challen ged in a ud it witho ut t he prio r a pp ro val of the Dy. DA. 4. Sanctio ns of HODs ma y, ho weve r, b e a c c e p t e d in a u d i t b y S O / A Au O . (P O O s 65 1 d at e d 6 . 9. 5 7 a nd 78 6 d at e d 5 . 5. 6 2 a nd P O O 9 93 of 1 7. 4 . 73 ) 197 . Allocation and tr acing of bill s. Th e allocatio n o f ch arge s sh ould be ch ecke d a s pe r pa ra 21 7 of Ra ilway Aud it Ma nu al. Th e p osting of the aud ited b ills in the Re ven ue Allo ca ti on Re gisters an d Work re gisters sh ou ld b e traced a s req uired un de r pa ra 280 o f the RAM to the exten t la id down . Postin gs in cadre reg ist ers fo r G azet t ed O ffice rs a nd in Scale che ck re gisters for no n-gaze tted staff sh ou ld be trace d in resp ect o f aud ited p aysh e e t s . 198. Pay-orders and other vouche rs not falling under any other items. (Para 28 8 o f Railwa y Aud it Ma nu al) A list o f pa y orde rs a nd oth er vouch ers sh ou ld be p re pa re d from the Au.6 Re gister an d selectio n ob taine d from this list . In scrut in ising th ese vo uche rs ru les o r au tho rity for p aymen t sh ou ld be lo oke d into in ea ch case . Prop riety o f exp en diture may a lso have to be e x amine d if na ture of e x pen ditu re sug gests it. 199. Check of journal vouchers including scr utiny of adjustment mema. (Para 27 8 an d 3 87 o f RAM). A co mplete list of th e jou rn al vouch ers sh ou ld be ma de ou t fro m the re gist er of JVs. i.e . In dex Re gisters ma in taine d in th e Bo oking section o f th e Accou nts office an d selection obta ined to th e exte nt p re scribe d. The in struction s co nta ined in pa ra s 278 and 38 7 o f t he R AM s ho ul d b e f o llo we d w h ile a ud it in g t h e j ou rn al vo uc h ers . 200. Pr ovisional payments. D ur i ng q uart e rly re v ie w o f O bj ec t i on ab le Items Reg ist er as p ro vided fo r in Prog ra mme of Aud it, pa rticu la r atte ntion sh ou ld b e p aid to items o f provision al pa yment s en tered in th e re gister. All provisio na l pa yme nts which are pen ding fo r ove r 6 mo nth s sh ould be Principal Director of Audit, Central Railway 90 sp ecially scrutinised to see tha t p ro vision al p aymen ts h ave be en made und er prop er a uth ority a nd wh eth er ade qu ate action h as be en taken by the Administration t o finalise the m. Ca ses which revea l th at p ro v ision al payme nts are e it her un ju stifie d o r th eir co ntin ued pa yme nt is like ly to re sult in a loss to Railway eventually or a ct io n t o f i na l is e t he s a me i s no t ade qu ate or satisfa c tory, may b e rep ort e d t o P r. Di r e c t o r o f Au d i t w i t h a se l f -co n t a in e d n o t e f o r i n f o r ma t i o n and f u rt h er orde rs, i f a ny , b y t he se ctions and divisions concerned. 201 . Re gi sters of a. Misc ella neous advances including House Building and Motor Car/ Cy cle Advance. b . De po sit Misce lla neo us. The s e re gisters sh ou ld b e re v i ewed a nn ual l y , w i t h r ef e re nc e t o p ro v is i on s c o nt a in ed i n t he India n Ra ilway Co de fo r Accou nts Dep artme nt. It sho uld be se en tha t bala nces have be en du ly re con ciled mon t hly wit h th ose in Ge ne ra l Boo ks. Ca s es of f a i lu re t o w ri t e b ac k f r om suspense to serv ice heads in the accounts of the year will constitute `o t he r m is t a k es ' wh i c h m a y h av e t o be in clu de d in an ne xure J to Ap propriation A c c o u n t s o f t h a t y e a r; s u c h c a se s notice d du rin g th e review sho uld t heref ore b e no ted for inclusion in the Ann exu re . (Paras 32 9 & 32 1 & 38 1-38 2 of Railwa y Aud it Manu al) 202 . Regis te r of irre gul arities , loss es a nd overpa yme nts wai ved a nd OI Re gister mainta ined in Accounts Offi ce: The se re giste rs, mainta ined in Ac c ou nt s O f f i c e s ho ul d be r ev i e we d qu art er l y , w i t h r ef e re nce t o p ro v isi on s of Ind ian Ra ilway Cod e fo r th e Acco un t s De p a rt m e n t . I n t h e c a s e o f impo rt ant ite ms no ted the re in , pa pe rs o f Acco un ts Office sh ou ld be peruse d to se e wh eth er th e su bject is fit for me ntion in Ra ilwa y Au dit Re po rt ; w he t he r ac t i on t a k en b y r ai l wa y a dm i nis t ra t i on w he re v er nece ssary, ha s be en ad eq uat e: a nd wh eth er saf egu ards e xist to p reven t re c ur re nc e o f t h e ir r eg ul ar it y e t c . ( pa ra s 2 83 a nd 4 77 o f R a ilw ay Au dit Ma nu al) 203. Register of sanctions having limited currency: The register should be reviewed annually to see whether in respect of items entered therein any expenditure has been incurred beyond the date of the currency of the sanctions. Where sanctions having limited currency are scrutinised in audit it should be seen whether they have been duly noted down in this register to ensure that the postings in the register are complete. (Para 132 of the RAM may be seen) 204 . Review of working of the Ac counts Department . ( Pa ra 56 M O I 135 of Railwa y Au dit Ma nu al) Re vie w o f workin g o f Accou nts De partmen t sh ou ld be co ndu cted yearly with refe re nce to in struction s g ive n in pa ra 131 o f Railwa y Audit Ma nu al. Ite ms to be reviewed a re g ive n in the Ann exu re to Ch apt er V o f secret me mo ra nd um. 2. At the commence ment of th e ye ar, section con c erne d will n ote do wn the list of items to b e re viewed in th e r eg is t e r. B O c on c erne d w il l ex a mi ne t hi s list to se e th at it no t on ly co vers all ite ms t o be see n in th e review o f Accounts Office but also that all sub- s ec t i on s of t he a c c oun t s o f f i c e a re broug ht with in it s scope . 3. List o f ite ms shou ld be complied wit h re f e r e n c e t o Ac c o u n t s O f f ic e Ma nu al wh ereve r ne cessa ry. The se manu als may be req uisitio ne d from t he Ad minis t r at i on w ho s ho ul d ex a mi ne d em an ds a nd m ee t t he re quiremen t s as e arly a s po ssib le . PO O s issued by the Accounts O ffice sh ou ld a lso be take n into acco un ts wh ile comp iling th e list. Durin g the co urse o f th e review, items which re fle ct on the efficiency of intern al check of the Accounts Office should partic u larly be no ted for a p ossible me ntion Office Manual 91 in the re port on t he "Efficiency of intern al check in the Acco unts De pa rtme nt' . Resu lts of review sh ou ld b e s u b mi t t e d t o Pr. D i re c t o r o f A u d it . 4. R ep or t s o f i ns p ect i on o rg an is a t i on of R ai l w ay B oa rd ' s o f f i ce s h ou ld also be reviewed. 205 . Reconcil iation between Re gister of Bills received and Abstract of Bi l l s p as se d for p ay m ent . (Kno wn a s Au6 an d CO7) The practice in this office is to se le ct vo uche rs fo r au dit throu gh th e Re gister of Bills received (A-2 04) with ou t refe rence t o the b ills a c tua lly pa ssed fo r pa yment (A-20 7). If a bill is paid a nd in clu ded in the Abstract o f bills pa ssed (A-2 07) with ou t bein g reco rd ed in the Reg iste r of Bills re ceived, the b ill in qu estion wou ld auto matically esca pe selection for Audit, if such, sele ction is made solely with refe re nce to th e Re gister of Bills re ceived. As a safeg ua rd a ga in st su ch a co nting ency i.e. ha lf ye arly reco nciliat io n be twee n the two sh ou ld be u nd er t ake n. 2. For this p urpo se Book & Budg et (HQrs.) Au dit sectio n sh ould ge t an y one mo nth in ea ch of the h alf ye ars e nd in g on 3 0th Sep t embe r an d 31 st Ma rc h s el ec t e d b y t he BO a nd i nt i ma t e it t o ot her a udit i ng s ec t i on s . T he se ction s sh ou ld t ra c e the section al n umb ers o f A-20 7 pe rt aining t o tha t mo nth in th e Reg ist er of Bills re ceived (A-2 04 ) 206 . Office Manuals & POO of the Accounts office: Instructions co nta ined in p ara 1 20 of Ra ilway Aud it Ma nu al sho uld be followed as and wh en n ew/revised office man ua ls or PO Os issu ed b y FA&CAO are received in t h i s o f f ic e . 207 . Review of Audit Note s and Inspection Reports. A r e v i e w o f Pa rt I I Aud it No tes issued fro m th e sect io n sho uld b e made every ha lf ye ar to see wh eth er n ece ssary a c tion ha s bee n take n by Acco un ts O ffice o n all irre gu la rities po in ted ou t th ro ug h aud it no tes. Case s whe re n o action ha s bee n t aken at all or act io n ta ken is no t ad eq ua te sh ou ld be ta ken up with Accounts Officer. Similarly, a review of all outstandin g Pa rt II Inspection Re po rts sh ould b e mad e du ring in spect io n of th e o ffice conce rn ed . Instructions issued by Headquart ers o ffice through POOs/circulars should also be kept in view. 208 . Dead stoc k register clothing account, stam p and stationary accounts of Accounts Offi ces. The se sh ould be checke d b y re spe ctive aud itin g se ctio ns o nce a ye ar. 209 . Passes and privilege ti cket orde rs issued by the Accounts Offic es. Th es e s ho ul d b e c he c k ed by r es p ec t i v e a ud it i n g s ec t io ns o nc e a ye ar. 210. Rough Audit Note s: Ro ug h au dit no tes th at are issue d sho uld be entered in a regist er. After discussion s results should be noted in the re gis t er. N o r ou gh a ud it n ot e s h ou ld re ma i n ou t s t an di ng f o r o v er a mo nt h . If b y a ny cha nce it is no t p ossible to d iscu ss th e ro ug h au dit note with in a mo nt h , t he r ou gh a ud it n ot e s h ou ld b e c l osed an d t he o bj ec t i o ns is s u ed a s aud it n ote Part I or I I a s the ca se may be . I t sh ou ld be e nsu re d tha t proper machinery exists in various sec t i o n s o f t h e Ac c o u n t s o f f ic e f o r wa tching furthe r act io n ne cessary on o bjectio ns, dispo s al of which is le ft to Railway Ad minist ra tion. 211. Local Inspections: The AAuO/SO of local in spection partie s should issue prelimin ary slips (without waiting for Inspecting Officer to arrive) in Principal Director of Audit, Central Railway 92 all ca se s of ob jection s a nd irre gu la ri t i es e x c ept in g w he n t he y t he ms e lv e s feel it necessary to consult I nspecting Officer. Pre liminary slips are no t forma l ob je ctions bu t are in ten de d fo r eliciting info rma t io n o r the views o f the h ead o f the o ffice a fte r con s id erin g which, objection, if any, is to be ra ise d. Rep lie s to p re limin ary slip s shou ld be ob taine d within th re e o r fo ur days o f issue as far as po ssible. All o bject io ns sho uld be discusse d with the Divisio n/District of fice r a nd se ttled on th e sp ot to t he e xten t po ssib le befo re clo se of in spe ctio n. It ems wh ich ca nn ot be se ttle d on th e spo t sh ou ld be includ ed in eithe r Part I o r II of t he I nspe ction Re po rt. 212 . Draft part I inspection re port or special letter should be submitted to Pr. Di r e c t o r o f Au d i t w it h in a f o r t n i g h t of the completion of the inspection so a s to issue th e re po rt wit hin a prescrib ed p erio d of on e mo nth f ro m the date of co mpletion of th e insp ection . Sp e ci a l l e t t e rs, Pa rt I Au d i t No t es and I ns pe c t i on R ep or t s m a y b e i ss u ed a f t er ob t ai ni ng a pp ro v al of Pr. Dir e c t o r o f A u d it in a ll ca se s. A co py there of sh ou ld a lso be sen t to Re po rt se ction for informatio n an d reco rd. 213 . Th e ob je ction s sho uld a lso b e cate go rised in th e man ner me ntio ned abo ve for obje c tio ns ra ise d in Central Audit an d dea lt with o n the sa me line s. 2. I n r es p ec t o f obje ct io ns ra ise d in it ia lly a t Div i s io na l U ni t L ev e l bu t taken up b y He ad qua rters o ffice centrally with the FA&CAO/HOD co nce rn ed la ter the ob je ctions sh ou ld no t be clo s ed b y the division al/bra nch Aud it Offices o n rece ip t of reply from the Ad ministration wit h o u t t h e a p p r o v a l o f t h e Dy. Dire ct o r/ Pr. Di re ct o r o f Au d i t . (Au/ECPA/ROC/3 4/67 22 da ted 15 .9.7 7) 3. ADAI (Rlys) h as ag re ed to the s ugg estion of Fina ncial Co mmissione r o f Ra ilways that where aud it ob je ctions ha ve b een acce pte d b y Railwa y Adm i nis t r at i on a nd a c t io n i s i ni t i at e d by th em, Aud it sh ou ld re mo ve the ite ms fro m the list of o utsta nd in g o bjectio ns su bject to Au dit h aving the righ t to co mme nt. Th e prescribe d instruction s con t aine d in th e p ara II o f Sec r et PO O N O . 10 96 d at e d 2 0. 6 . 84 s ho ul d b e b or ne in m in d. Office Manual 93 CHAP TER VI CO -O RDI NAT I O N 214 . Duti es. Co-ord in ation Sect io n is re spo nsible fo r co -o rd in atin g the aud it work amo ng the variou s section s a nd divisio ns o f th is office. The ma in functions of the Sect i on are d et a ile d b el ow . 1. Co ns o li da t i on of ma t er i al r ec e iv e d from Branch O ffices/Sections in connection with various ret urns required to be sent to ADAI(Railways) excep t ing those relating to o ffice a dministra tion, Fin an ce Acco un ts, Ca pita l a nd re ven ue accou nts a nd Ap propriation Acco un ts. 2. To d ea l with te chnica l re feren ces re ceived from th e ADAI (Ra ilways) re qu iring co lle c tio n o f info rmat io n from va riou s Bran ch Of fice s/Se ctio ns. 3. To d eal with all re feren ces perta in in g t o more tha n o ne HQrs.section . Re feren c es in resp ect o f su bjects dea lt with by o ne HQrs.section in volvin g colle ction of in formation from Divisions/Workshop Audit units are h oweve r, dea lt with by th e resp ective HQ rs. se ctions. 4. Ma terial re quired fo r mee t ing o f G ene ra l Ma nag er with He ad s o f De pa rtme nts sh ould be colle c ted by COR Section . 5. To de al wit h all re feren ces co nn ected wit h Prog ra mme of Aud it and Ex t e n t o f Aud i t . 6. To deal with fixation of Target s f o r S r/ A u O s / A Au O / SO s ( Au d i t ) ( PO O no. 111 5 d ate d 2 3.5 .88 ) 7. Re nd erin g t echn ica l assistan ce to Pr.Directo r of Audit. 8. To de al with a ll work a nd re turns men t ione d b elow. 1 . W ee k ly r et u rn s : 1. A-Dak Re gister of COR section 2. B-Dak Re gister of COR section 3. C Dak Re gister of COR section 2 . M on t hly R et u rn s . 1. Pro gress o f Insp ection s-Re port o n I nspe ctions not complet ed and I n s p e c t io n R e p o rt s n o t i s s u e d . 2. Monthly submission of A, B, C Da k. 3. Mon t hly Arrea r Re port o n th e sta t e o f work 4. Con solidat ed state me nt o f A, B, C Dak letters and Delayed Re turns. 5 . S e l e c t i o n o f A Au O s / SO S ( Au d i t ) f o r Pos t Re v ie w . 6. Particu la rs of sa nction s accord ed b y GM (Non-pe rso nn el) 7. Stat emen t o f p osition of ou tstan ding Aud it Ob je ctio ns, Sp ecial le tters, P a r t I A u d it N o t es , I n s p e ct i o n re p o rts Pa rt I I I n s p e c t io n R e p o r t s , Au d i t N o t es ( Au/ C O R/ VI / 4 / or d e rs/ 3 6 1 5 d a t e d 2 5 . 8 . 9 3 ). 3. Quarterly Re turns. 1. 2. 3. 4. Reg ister of B & C Dak Material f or Quarterly Audit Bulletin Qu arterly Arre ars Rep ort Circu lation of pa ra s from Re gister o f Au dit Activities and su bmissio n o f Register (RAA) Principal Director of Audit, Central Railway 94 5. State ment of clearan ce of out st and ing Pa rt I Aud it Note s Insp ection Repo rts an d Sp ecial lette rs. 6. Review o f Corre c tion slips to Office Ma nu al an d sub mission of re gister o f c o rre c t io n s l i p s t o O M t o P r. D i r e c t o r o f Au d i t . 7. Rep ort o n th e n on-ava ila bility o f vou che rs/files 4 . H a l f Ye a r l y R e t u rn s. 1. Classifica tion of POOs a nd issu e o f co rre ct i o n sli p s t o O f f i ce Ma n u a l . 2. Verifica tion of Sto ck o f Secret Me mo o f I ns t r uc t i on s -reg arding e x t en t o f check. 3. C er t i f ica t e o f s t o c k t ak i ng of t he c op ie s o f t he C AG ' s Se c re t M em or an du m o f i ns t r uc t i on s . 5. Ye arly Re turns 1. Wee ding an d d estruct io n o f old re cords in re spe ct of the ab ove ro utine it ems . 2. A l is t c on t ain in g t he a ud it u nd er t ak e n un der Se c t io n 14 , 19 , 20 of t he C&AG ' s DP C ACT-7 1. 3. Frau ds an d L osse s - d elaye d rep orts to Aud it 4. Aud i t B ul le t i n -s u bm i s s io n of i nf o rmat io n re ga rd in g nu mber of cop ie s re qu ired . 5. A review of ove rp aymen t re covere d/writte n of f a t the insta nce o f au dit an d Submissio n o f Reg ist er of Re coveries a t the instan ce o f Au dit. 6. DP for RAR o n o utsta nd in g o bjectio ns a nd Insp ection Rep orts -po sition as on 31st August. 7 . R e p o r t o n t h e r e v ie w o f Ac c o u n t s O f f i ce wo rk-Ef f i cie n cy o f I n t e rn a l check. 8. L ist o f items o f Orig in al Au dit a nd Post Re vie w 9. p articu lars of sa nction s acco rd ed by GM(Perso nne l) (Au t ho rity: POO No . 11 05 da ted 1 7.7. 85 an d POO No . 11 17 da ted 13.9.88) 10. To scru t inise an d co nsolida t e mon t hly arrea r rep orts an d q uarte rly a rr ea r s re port s r ec e iv e d f r om Bra n ch o f f i ce s/ se ct i o n s 11. To prep are a ge nda for Principa l Directo r o f Au dit' s con f eren ce an d to m a in t ai n c o rres p on de nc e t here of . 12. To scru t inise an d fin alise mont hly in spe ctio n/to ur p ro grammes/In spe ctio ns and a nnu al insp ection pro gramme o f d ivision al offices, h ea dqu arters se c t i on s , c on s t ru c t i on a nd Wo rk s h op & Stores Audit unit s and submit the sam e t o Pr. Dire ct o r o f Au d it f or a pp ro v al t o ge t he r w it h p ro po s als f o r r ev i ew of ma j or w or k s (co mp le t ed a nd in prog re s s ) if a ny . 13. T o c a ll f or a nd c on s ol i da t e s t at i s t i c s o f v o lu me o f wo rk do ne i n t he office and send them to CAG’s office. 14. To con solidate a nd su bmit mon t hly list of ou tstan ding let t ers o f A, B & C d a k t o Pr. D ire c t or o f A u d it . 15. To receive cases of lo sses on ra il w ay s a s r ep or t ed by bra nc h o f f i ce s and to furnish the necessary report to ADAI (Railways) 16. To review freq ue ncy o f loca l in sp ectio ns a nd to e xamine ne ed for an y ch an ge in fre qu ency or time alloca tio n so as to e nsu re th at time Office Manual 95 a llo we d is a ccording to qua ntu m of wo rk in volved . ADAI (R)'s letter no. 1294/RAI/A-8-10 -8 2 dated 18.4.62) (Aut hority: 17. To issu e Correction slips to O ffice Manu al from time t o time an d kee p it up to date. 18. To re ceive an d su bmit ma terial in conn ectio n with mont hly DO le tters of Sr/ Divisional Audit Officers and Sr/ Audit Officers addre ssed to P r. D i r e c t o r o f Au d i t . 2 1 5 . I m p o r ta n t R e s u l ts o f Au d i t (Para 48 4 RAM). Whe neve r a ny au dit obje ct io n has re sulted in a su bsta ntia l re covery o r eco no my by way o f eit he r r ed uc t i on i n ex p en di t ure o r in c re ase in ea rn in gs, t he se ction/ division co nce rn ed s hou ld prep are a g is t o f t he c as e a nd se nd it a lo ng w it h re l ev an t papers to this sectio n. CO R section afte r exa minin g th e ca se sh ou ld su bmit it for approval of Pr.Director of Au dit for in clusion in the Pa ra for Re gister of Aud it Activities. The ca ses a fte r ap prova l sho uld be n ote d in the reg ist er ma in taine d ce ntrally b y CO R se ctio n in th e fo rm given in ann exu re 18 to th is Man ua l. Th ese para graph s sho uld th en be circulate d to all sectio ns and divisions quarterly fo r informatio n. Selected paras will also be sen t to ADAI(R)' s and Pr.Direc t or of Aud i t o f o t he r z on al r ai l wa y s . Similarly paras received from other ra ilway au dit off ice s sh ou ld also be circulated to all divisions and sections. (POO no . 7 12 o f 20 .2.6 0, 81 1 da ted 28. 11.6 2, 9 20 d ate d 21 .12 . 67 a nd 982 dat e d 1 8. 1 1. 7 2) 216. Arrear Report: T h e m on t hly ar r ea r r ep or t s i n t h e p re s c ri be d f o rm v i de Ann exu re 15 to this Man ual from Divisio ns a nd Se ctio ns sh ou ld be re ceived by COR se ction for sub mission to Pr.Dire ctor of Au dit by 10 th o f every mon t h. 2. Bran ch Office rs sho uld p erson ally review the po sitio n of a ud it work on 20 t h of e v ery m o nt h a nd t a k e ne c es s a ry act i o n s o t ha t t he re wi l l n ot be an y arre ars or as lit t le of th em as p ossible a t the en d o f the mont h. The arre ars in mo nth ly prog re ss re po rt shou ld b e ref le c ted in te rms o f man days. 3. Q uarte rly arrea rs rep ort in prescrib ed forms as state d in pa ra 19 5 (see an ne xu re 16 ) Office Man ua l sh ou ld be scru t inised and con solidat ed b y C O R s ec t i on . C on s olid at e d q ua rt e rly r ep or t s ho ul d b e f o r wa rd ed t o C A G (Ra il w ay s ) in d up li c a t e s o as t o r ea c h C AG ’ s of f i c e b y 2 0 t h o f A p ri l , July, O ctob er an d Jan ua ry of every year. Alo ng with qu arte rly rep orts for qu arters en ding 30 /9 a nd 3 1/3 , th e stat emen t of o utsta nd in g Part I ob je c t i ons as p re s c ri be d i n C AG ( R ai lw a y s ) l e t t er n o. 4 50 -R AI V/ 10 -2 / 88 d a t e d 1 6 . 6 . 8 8 s h o u l d a ls o b e s e nt. (c f.Au/Rep/V/ 1/orders/1450 dated 8/6 / 87 an d Au/COR/V/ 1/ o rd ers /23 17 da ted 27. 6.8 8) 4 . T h e r e p o r t c o n s ist s o f : 1 . A ta bula r sta t emen t in dicatin g arrears in ea ch sect io n/Division u nd er the th re e p rescrib ed cate go ries co mpa re d with tho se a t th e end o f the previo us qu arte r e x plaining th e sign ifican t ca uses f or in cre ase , if any; 2. A brie f re s um e o f t he mo re imp or t an t it ems of a rr ea rs , t h e p er io d t o which they re la te, the reasons for such arrears, the steps taken or prop ose d to b e ta ken f or the ir cle aran c e a nd t he d ate by which t hey a re like ly to be cleared . Principal Director of Audit, Central Railway 96 3.Th e sta t e o f arrears in co rresp on de nce. 4. T he s ec t i on s / di v i s io ns s ho ul d s e nd f or t hi s pu r pose t he ir r ep or t s in the p rescrib ed p ro f orma to COR sectio n by 5th of Ap ril, July, Octob er an d Ja nu ary. Sp ecific re aso ns fo r arre ars, reme dial mea sures taken an d d ate by which arre ars in au dit o ffice p ro per is exp ecte d to be c le ar ed s ho ul d b e f u rn i s hed i n t h e r ep or t s . (S A/ C O R / 7 4 d a t e d 1 3 . 1 0 . 6 0 , S A/ C O R/1/1-61/62 dated 19.5.61 and PO O 104 4 o f 20 .10 . 19 77 ) 5. Arre ars i n O r i gi na l A ud it a nd Pos t re v ie w by G a z et t e d O f f ic e rs - A l i s t s ho wi n g i t ems of O r i gi na l A ud it a nd P os t R e vie w b y G az e t t ed O f f i c er s which ha ve not b ee n complete d in the mon t h sho uld be sent so a s to re ach co -o rd in ation se ctio n by 7th of th e f ollo win g mo nth . CO R section will the n sub mit a conso lid ate d repo rt t o Pr.Dire c tor of Audit. (POO NO. 67 7 d ate d 1 . 3.5 7) 217 . Pos t R ev i ew b y Se cti o n O f fi c er / A s si s ta n t A u d i t O ff i c er s/ AA u O s: Select io n of Section O ffice r/Assistant A u d it O f f ic e rs f o r p o s t - re v ie w s h o u ld be d on e b y C O R s ec t i on an d a dv i s ed t o t h e S ec t i on s / D ivi s i on s c on ce r ned at h ead qu arters by the 20t h of ea ch mon t h. (PO O 68 6 d ate d 2 1.4 .59 ) 218 . Progres s of Inspec tions : A re po rt sh owing in sp ectio ns in arrears ou t of t ho se p ro gr am m ed t o e nd o f p re v i ous m on t h and i n s pec t i o n re po rt s in arre ars ou t o f th ose du e t o b e issu ed by en d o f p re vio us mo nth sh ould be se nt by Section s /divisio ns to rea ch CO R section b y 2n d of e very mon t h in the prof orma p re scrib ed in Ann exu re 3 6 A. Co-ordina t io n section will pu t up conso lid ate d p osition to Pr.Directo r o f Audit b y 6 t h o f e ach mo nth . (P O O 7 49 d at e d 1 0. 2 . 61 ) 219 . Quarte rly state m ent showing cle ara nce of outs ta nding obje ctionsQ ua rt e rly re po rt s o n ou t s t an di ng s p ec ial letters , Pa rt I Audit Notes and I ns pe c t i on r ep or t s s ho ul d b e f ur ni s h ed b y s ec t i on s / di v i si o ns s o a s t o r eac h CO R se ctio n by 5t h of th e following mo n t h a lo ng with t he q uarte rly arre ar re port. (Au / COR/VI-4/6 8-69 da ted 2.8 . 68 . PO O10 44 of 2 0.1 0.7 7) 220 . Revision of Codes and Manuals: Pa ra 81 of Ra ilway Aud it Ma nu al st ip ulat e s t h at t he O f f i c e M a nu al s h ould b e k ep t u pt o d at e b y i s s ue o f Co rrec t io n s l i ps . F or t h is p ur po s e, circulars from high er au tho rities and proced ure Office O rd ers issu ed b y Section s sh ou ld be e xamined to see wh et h er t h e s u bject c a n f in d a s ui t a bl e p la c e in t he O f f ic e M an ual a nd an adva nce correction slip sho uld also b e prop osed b y th e se ctio n for app ro val of Pr.Directo r of Audit. 2. It sho uld be circulate d in th e same man ner as a proce dure of fice o rd er (POO) an d sha ll h ave th e same effe ct a s a POO . New o rd ers, circulars and PO Os fro m high er au tho rities a nd Ac c ou nt s O f f i c e d eal i ng w it h ch an ge s in proce du re , in terpreta tion or modification of ru le s o r o rd ers e t c. sh ou ld n ot be file d with ou t a suitab le cert ificate from the Branch Officer that a) n ecessa ry cross re feren ce ha s bee n give n ag ainst th e re levan t para of Office Manual; or b) n o c o r r e c t i o n s li p t o t h e Office Manual is called for 3. Th re e co pies o f the ad van ce co rrectio n slip sho uld be furnishe d to Coordina tio n se ctio n wh o sho uld ke ep a reco rd of th e sa me in a Registe r to be main tained in the following form. Office Manual 97 FORM Sr. no 1 Section & its file no 2 Authorit y Letter no Date 3 4 5 Brief particulars of subject& orders 6 Chapter & para of OM affected 7 C.S No. & dt Advice to Admn No & dt 8 4. Wh en an a deq ua te numb er of correction slip s ha ve bee n issu ed, the Administration Se ctio n sh ou ld be aske d to make arra ng emen ts to have them p rin ted and distrib ute d. 5. Hea dqu arters sectio ns sho uld sen d a quarterly report to COR sect ion on 10t h J an ua ry / A pr il / J u ly/ O c t o be r e v ery y ear certifying th at rele vant ch ap ter of Office Manu al perta in in g to the ir section h as be en reviewe d with re f er en c e t o n ew o rd er s , c i rc u la rs , PO O s et c. r ec ei v ed / i s s ued a nd t ha t co r re c t io n s l i ps t o t h e Ma nu al w he re v er ne c es s a ry h ad b een p as s ed o n t o Co -o rd inat io n Section for issue. 6. Co -o rd inat io n section afte r reviewing th e po rtio n relating to tha t se ction , POO s an d CAG ' s orde rs e t c. s ho ul d s ubmi t a c onso l id at e d r ep or t to Principa l Dire ctor of au dit by 2 0 th Ja nu ary/Ap ril/July/Octo ber th ro ugh Re gister o f Advan c e Co rre c tio n slips ma in tain ed in th at section . (Au/Cor/96 /78 86 da ted 30 .10 . 79 ). 7. Co rrection slip s to Office Ma nu al sho uld be co-ordin ate d b y Coordina tio n section . For th is pu rp ose correction slip s to th e Manu al sh ou ld be draft ed by section s con c erne d an d t he draft du ly ap prove d by Prin cip al Dir e c t o r o f a u d i t s e n t t o C O R s e c tion wh ich sho uld a llo t ap prop riate numb er in series to the corre ction slip a nd arrang e its circulation . The co r re c t io n s li p s ho ul d be draf t ed w i t h due r eg ar d t o t he n ee d f or p re c isi on and brevity. (PO O No. 8 58 da ted 3.7 . 64 ) 221. Review of the working of the Ra ilway Protecti on Force. T h e mo nth ly re po rt of lo sses sen t to th e Ra ilway Bo ard by the Railwa y Administration have to b e reviewed an d commen t s if any co nve y ed to the CA G (Rlys). For this purpose divisi ons/sections including Workshop and St ores, s ho ul d re v ie w t he p er io di c al r ep or t s r el at i n g t o l os s e s / t he f t s o f Ra ilway p ro pe rty an d losse s d ue t o fire etc. du rin g bien nial inspe ction o f Offices of Chief Security commissioner/IG (RPF) Divisional Security Co mmission er (RPF). 2. T he o bj ec t o f t he r ev i e w i s t o c o mmen t on t he ef f e c t ive ne s s o f t he Secu rity Orga nisatio n an d th e e x pen diture in curre d th ereo n. (POO no. 734 date d 26 .10 . 60 . PO O n o.9 09 da ted 2 5.3 .67 an d POO no .10 71 da ted 24.1 0.8 1) (CAG' s lette r no. 201 4-RAI-A1 27/ 60 date d 2 2.7 .60 ). 222 . Statistics of vol um e of work done in Audit Offi ces: For the purpo se of collection o f su it able sta t ist ics (like vou chers, re gisters and ac c ou nt s et c . of va r io us i t e ms re l at i ng t o p re v io us f in an c ia l y ea r in c lu di ng Ma rch fina l an d su pp le me nta ry acco unt s) t o se rve as a f air in de x of the volume of work done in Railway Au d i t O f f i c e s , i n f o r ma t i o n in t h e prescrib ed form (vide An nexu re 1 9 of this Man ua l) shou ld b e sub mitte d b y the sectio ns and divisions t o the CO R se ction by 15th of July each year. Principal Director of Audit, Central Railway 98 9 Th e conso lid ate d inf orma t ion sho uld be sen t to the CAG (Rlys) so as to re ach his/he r office be fore the 1 0th of Au gust ea ch yea r. (EX.DCA' s le tter no.A8-3/5 3-1 da ted 1 4.1 1.5 3, POO n o. 75 9 o f 6.4 . 61 . POO No.8 31 da ted 22.7 . 63 an d Au/COR/1 -4 /48 43 da ted 5.9 . 75 ) 223 . Report on the Efficie ncy of Inte rnal c heck . A rep ort on efficiency o f in t er na l c hec k re la t in g t o p re v i ous f in an c ia l y ea r s h owi ng po s it io n a s on 30th Jun e d uly accep t ed by th eir co un terpa rts in a ccou nts Off ice shou ld be se nt to COR sectio n by all sections /divisio ns b y 1st of O c tob er in prescrib ed form. Wh ile prep aring the re p ort it sh ou ld b e a scertaine d by a co mplete re vie w of all re gisters mainta in ed for the purpo se in Accoun ts office, tha t ad eq ua te ma ch inery e xist s in inte rnal ch eck t o wa tch reco very of all cha rg es for services ren dered to sta ff eg . diet ch arge s, electrical ene rg y cha rges, re nt for q uarte rs, re nt f or elect rical insta lla tio ns and sa nita ry fittings, co nse rva ncy cha rg es an d misce lla neo us ch arges. L apse s on t he p ar t o f Ac c ou nt s O f f i c e t o t ak e a pp ro pr ia t e act io n f or r ec o v er y o f t hes e c ha rg es s h ould b e b ro ug ht o ut i n t h e r ep or t . T he s e r epo rt s s h ou ld be conso lid ate d b y COR se ctio n and su bmit t ed t o Prin c ip al D i re c t or o f Aud it f or orders as reg ards fu rth er action con sid ered ne cessary. Defe cts in in ternal checks which are serious in the sense that they facilitate frauds or le akag es of reve nu e shou ld be ta ken u p with Ra ilway Administra tion in the mo st effectiv e ma nner possible. More import ant cases may, however, be co nside re d f or in dividua l comment in Railwa y Au dit Rep orts. 2. Case s wh ich are pursue d b y section s throu gh Roug h Aud it No tes, Part I & II Aud it Not es and Inspe c tion Rep orts ne ed n ot be in clu ded in the rep ort on eff iciency of int ernal check, but should be wa tched b y se ctions a t lea s t for two to three years. (A u/COR/1 -5 da t ed 26. 4. 7 2 an d 1 9/ 2 / 75 ). 224 . Implem entation of Importa nt Orders by the Adm i nistration. Imp lemen tation of o rd ers of G overnme nt o f Ind ia an d Ra ilway Board h aving fin an c ia l implication by Ra ilway Admin istra tion sh ou ld be watch ed by all auditin g sections. List of such orders which a uditing se ctio ns con sid er, ca nn ot be imp le me nte d by Railway Administra tion immed ia t ely sh ou ld be ente red in a re gister, sepa ra te pa ge s b eing a llot t ed fo r ea ch section . The Re gister sh ould be pu t up to Dy.Director h alf yea rly o n th e 5 t h Janu ary and July each year for sele ctio n of it ems wh ic h may be suitable for re view. (POO No. 654 da ted 13 .11 . 57 . POO 10 44 of 2 6.1 0.7 7) 225 . Draft para for Rai l way Audit Report on outstanding objections and inspecti on reports: A s t at e me nt s h owin g p os i t io n o f a ud it o bj ec t i on s issu ed up to 31 st March bu t n ot cle ared up to 31 st Augu st is re quired to be se nt t o CAG(R) in prescrib ed profo rma (vide Ann exure 20 to this Man ua l) t o r ea c h h im n ot l at e r t ha n 1 s t w ee k of O c t ob er ev e ry y e ar. Sectio ns/divisio ns sho uld send t he in fo rmat io n re qu ired to COR section b y 10th o f Sep t embe r po sit ive ly. COR se ctio n sho uld con solid ate th e po sition and repo rt to CAG (R). 2. The position of o utsta ndin g ob je ction s sh ou ld in dicate cle arly t he b re akup of ob jection s into t wo ca teg ories viz.; whe re mo ney valu e is kno wn and wh ere mo ne y value is not known an d a lso th e fa ct whe t her o bjection s fall in to Test audit Notes in cluding special le t t e rs o r I n s p e c t io n r e p o r t s Pa r t I . (CAG (R)'s le tter nos.1. 337-RAI/10-1/62 DATED 2.2.63, ii.786-396/DRAI/105/74 dat ed 1 9.6 .75, iii.6 95 -a -4 25 1-1-RAI/1 0-4/7 5 da ted 2 1.5 .76 &, iv.COR's no.Au/COR/FS/ 27/111/4651 dat ed 28.8.76) Office Manual 99 226 . J ob Ana l ys i s o f R ai l w ay A cc ou n t s O ff i c e: Impo rta nt ch an ge s in accou nts or au dit proced ure introd uce d as a resu lt o f job an alysis are to be rep orted to CAG (R) an nu ally. Fo r th is p urpo se se ctio ns/d ivision s sh ou ld se nd the ir re po rts so a s t o re ach CO R se ct io n by 1 s t o f Decemb er e v ery ye ar. T h e r ep or t on t he s ub je c t s ho ul d b e s e nt t o C O R o nl y w hen impo rt ant ch an ge s in a ccou nts or au dit proce dure a re no tice d as a re sult of job a nalysis. I t ne ed no t b e se nt if no such cha ng es a re notice d.(SA/ CO R/ 58 date d 1 7.1 2.5 9 a nd 19 .1.6 3) 227 . Fr auds and Losses- De layed Reports to Audit Sections/ divisions sh ou ld se nd a re port sh owing case s o f fraud s a nd lo sses due to be re porte d to a udit as p er pa ra 3 71 A-I a nd eith er no t so repo rt ed or re porte d af ter a lon g de lay so a s to rea ch COR se ctio n b y 1st o f Ap ril each ye ar. C on so l id at e d re po rt o f s u c h c ases sh ould be submitted to Prin cipal Dir e c t o r o f A u d i t . C a s e s o f lo s s e s o n ac c o u n t o f f i re , t h e f t s e t c . i n v o lvi n g an amou nt o f Rs. 50 0 o r mo re sho uld be re porte d to CAG(R). (SAB/ 140 dated 293.57 &S A/ COR/7 & Au /COR/6/3). RAII/t-17/56/91 dated 21. 3.57. 228. Frequency and duration of local audit: Principal Directors of Audit have be en given discre t ion to va ry p eri odicity an d t ime allo cation of lo cal in spect io ns Error! Bookmark not defi ned. at th e time of f in alisin g an nu al in spect io n prog ra mme su bject to cond it io n th at variation s so sanctio ned sh ou ld be mana ge d with e xisting staff. According ly, the p rogramme sh ou ld be p ut u p to Principal Dire ctor of Aud it and whe neve r any ch an ge in time allo cation is req uired, conce rn ed se ction / divisio n sh ould put up p ropo sals in dic at i ng t i me al l ot t e d a t pre se nt and t i m e r eq ui re d b y t he m s t at i ng wh ether extra t ime asked for will be managed within the existing staff. Th e p ro po s als shou ld be ro ute d th ro ug h COR sectio n. (POO No . 85 0 o f 8.3. 64) 229 . Annual Programme of Inspections. T he ann ua l p ro gr am m e o f in spect io ns to be do ne by sectio ns con cerne d will b e rece ive d b y the Coordina tio n section be fore the commen c emen t o f th e ye ar. The prog ra mme propo sed by t he Section sho uld be scru t in ise d b y th e COR se ctio n to see in t er -a l ia , s o t ha t a s f ar a s p os s i bl e the same stat io n much less the same office is n ot visite d b y th e In spectin g Pa rties(be long ing to wh ate ver unit) mo re than twice a year(The Bra nch Off i cers should also exercise adequate ca re to e nsure tha t th is do es not ha pp en). The p ro gramme o f insp ection s sh o u ld b e p u t u p t o t h e Prin c ip a l D i re c t o r o f A u d it f o r a p p r o v a l. 230 . Intensifi ed Inspecti ons. T he C O R s ec t i on i s r es p on s ib le f o r drawi ng up a mont hly p ro gramme for th e Inte nsified In spectio n section . Due d ate for submission by all sections/divis io ns to COR section is 1st of the previou s mo nth , so a s to re ach CO R by 5t h (eg . for insp ection s prop osed to b e take n d uring Jun e shou ld b e de spat ch ed b y th e se ctions. / division s on 1 s t o f Ma y, so as to re ach CO R section by 5 t h May) 2. COR se ctio n will g et the conso lid ate d insp ection prog ra mme fina lised with th e ap prova l o f Prin cip al Directo r of Audit an d sen d the prog ra mme to va rio us u nits be fore 15 th o f pre vio us mon t h so th at se ctions/ division s will have a minimum 1 5 d ays t ime to issu e advices to the offices to be in spect ed. Bra nch Officers sho uld e nsu re person ally tha t the ab ove date s are a dhe re d t o. (POO n o.9 18 dtd 5.7 . 67 & POO 1 011 da ted 15 .4.7 5) Principal Director of Audit, Central Railway 100 3. Audit Officers, Se ctio n Officer/Assistant Audit O ffice rs/ Assistant Audit Officers att ached to I ntensifie d In spection should ma intain separate re gisters to reco rd the re sults of orig in al au dit d one by e ach of th em during the insp ection s. Th e re gisters sh ou ld be su bmitted to the Dy .Director/Pr.Director of Au dit every mont h throu gh th e COR section . Th e r e g i st e r s o f S e c t i o n O f f i ce r/ Assi st a n t Au d i t O f f i ce rs/ Asst t . Au d it Officers sh ou ld be su bmitted throu gh th ei r inspecting off icers . In addition to the re marks on o rigin al aud it, the list of impo rta nt o bjection s take n up during in spe c tio ns sh ou ld also b e n ote d in t he orig in al au dit reg iste rs. (POO n o. 9 69 dat ed 9 . 7. 71) 231 . Custody and distribution of copies of Me morandum of Instructions regar di ng extent of audit. A cop y of th e Se cre t Me morand um of I nstruction s re gard in g ext ent o f au dit is supp lie d to each G a z e t t e d O f f ic e r a n d Sec t i o n O f f i ce r / As s i s t a n t A u d i t O f f i c e r ( SO G E) irre s pe c t iv e of t he f ac t w he t he r h e is i n c h arge o f a s ec t i on or n ot . T he boo k sh ou ld n ot be tre ate d as a pe rso na l cop y of the recip ie nts. It sh ou ld be e nsure d tha t the boo k is h and ed over to th e su cce ssor when the person t o wh om it i s i s s ue d proc e ed s o n le ave o r is tran sferred to a no t her station or office or retires o r oth erwise de mits o f f i c e . T h e f a c t t h a t t h e b o o k h a s bee n h an ded ove r o r ta ken over sho uld b e men t ion ed in the charge re ports. 2. Th e Dy.Directo r (A) is th e issu in g Off ice r. Ea ch bo ok issued by the issu in g off ice r sho uld b ear distin ct serial-number (eg PDA C.Rly.-1 , PDA. C . R l y -2 e t c . ) w hi c h s ho ul d be af f i x ed o v er h is / her da t ed i ni t i al s and o v e r t h e s t a mp o f t h e o f f i ce . 3. A c en t r al s t oc k r eg i st er s ho ul d b e m a in t ai ne d b y C O R s e ct io n t o re cord th e receip t an d issue of b ooks by the issuing office. The serial numb er allo tted to th e b ooks sh ou ld corre s po nd with t he n umbe r a llo tted in the Stock register. A half yearly st ock verification of the books should be ca rried ou t in th e mo nth s of June a nd Decemb er ea ch ye ar. Fo r this purpo se t he Bra nch off ice rs a t Hea dq uarte rs a nd Divisiona l Sr/ Au dit Officers in Divisions should furnish a ce rt i f i ca t e o f ve ri f ica t io n i n re sp e ct of b ooks a llo tted for th eir use a nd distrib ute d to Se ction Officer/Assistan t Aud it O f f i c e rs / A s st t . Au d i t ( s e p a r a t e ly for Civil & Ra ilways) to CO R section by 2 0th of Jun e a nd Dece mb er. Afte r re ceipt of the s e ce rt ificat es Ce ntral Stock reg ist er shou ld be pu t up to Principa l Director of Aud it on 7 t h o f July and Ja nua ry by CO R section fo r his/he r informatio n. An en try in ca lend ar of R et u rn s i n t hi s r eg ar d s ho ul d b e m ad e b y all S ec t i on s . C or re c t i on sl i ps in cluding Advance Correction slip s to secret Me morand um b oth Railways and C i v il re c ei v ed i n C O R s ec t i on . T he dis t r ib ut i o n o f t hes e i s d on e b y this section. (POOs-700 date d 25 .8.5 9, 95 2 da ted 3 0-1-70 , 97 3 da ted 1 4.3 .72 & CAG' s le tter no .11 5 A-co de s-1 / 68 -7 1 d ate d 2 3.2. 72) 232 . Procedure O ffice Orders issued b y P r i n c i p a l D i r e c to r o f A u di t. Ord ers issued by Princip al Directo r of Audit from time to t i m e , a f f e c t i n g t h e wo rk o f t he de pa rt m e nt , i nv o lv i ng c ha ng e i n p ro c edu r e or l ay i ng do wn proced ure will b e circu late d to all Bra n c h O f f i c e r s / Se c t io n s i n t h e f o r m o f POOs. Draft PO Os as an d whe n ne cessa ry will be su bmitted to the Prin c ip al D i re c t or of Aud it f o r ap prova l t hr ou gh C o -o rd in at i on S ec t i on . After their approval by Pr.Director of Aud it, these will be allotte d serial Office Manual 101 numb er s by C O R s ec t i on a nd c ir c u la t ed t o al l u ni t o f f ic e rs . O ne c op y w il l be p oste d in the re gister of POO s. 233 . Classifi cation of Procedure office Orders. COR sect io n should issu e a classifie d in de x of POOs issu ed du ring h alf yea rs en ding 31 st Ma rch a nd 3 0th Sep t embe r. A list o f se cre t POO s sh ou ld b e prep ared and circulate d se pa ra tely by en d o f Ap ril and Octo ber eve ry ye ar cove ring POOs issue d d uring half ye ars en ding 31 st March a nd 30th Se pte mber. (POO 8 58 d ate d 3 . 7.6 4) 234 . Procedure Offi ce orders issued by FA&CAO - A ll P O O s i s s ue d b y t he F A&CA O a re r ec e iv e d in C O R s e ctio n. COR sectio n distributes the POOs to co ncerne d sectio ns/divisio ns for in formation an d ne ce ssary action . Scrutiny o f PO Os issued by FA & CAO d evolves on the con cerned He ad qu arters Au dit section . 235 Audi t of Grants-in Aid : Cases if any, involving important irre gu la rities as an d whe n no tice d in the co urse of au dit of gran ts in a id sh ou ld b e rep orted to COR sectio n b y en d o f Augu st e v ery yea r for re p o r t i n g t o C A G , i f n e c e ssa ry. 2. A l i s t o f au dit s u nd er t ake n u nd er Se c t i on 14 , 1 9 a nd 20 o f t h e C A G o f I ndia ' s D u t ie s Pow e rs an d C on di t i on s o f Services Act 9 71 is re qu ired to be se nt to CAG(Rlys) by e nd o f April every ye ar in respe c t o f aud it d one duri ng t h e p re c edin g F in an c ia l y e ar. Sec t i on s / di v i s io ns a re r eq ui r ed t o send their reports in this regard t o C O R b y t h e 1 s t o f Ap ri l . (CAG ' s le t t e r n o . 3 1 3 7 -4 9 - R AI / 8 -3/ 7 4 d t . 6 . 1 2 . 7 4 - Au/ C O R/ C O N/ 1 9 ) 236 . Re cov er i e s at the i n s ta n ce o f au d i t. CAG has d ecided to con sid er in clu s io n of a co nsolida t ed p ara ea ch yea r in th e Railwa y Audit Rep ort re gard in g recove rie s effe cted o r a gree d to be effe cted by th e Railwa y Administration a t th e in stance o f a ud it. The inf orma t ion rega rd ing the re coveries e ffe ct ed at the insta nce of au dit sh ou ld b e fu rnished in the prof o rm a p r es c ri b ed v id e a nne x ur e 2 1 t o t h is m an ua l) t o t he C O R s ec t i on by 1 5t h of M ay f ol l ow in g. CO R s ec t i on s ho ul d c o ns o li da t e and f u rn is h t he ma terial to CAG by 10th of August e v ery y ea r d ul y ac c e pt e d b y F A&CA O . 2. In orde r t o red uce time la g in v e r if i c a t io n o f t h i s s t a t e m e n t , u n i t s sh ou ld in a dd ition to an nua l re turn, prepa re qu arterly return in the prescrib ed profo rma (fo r q ua rte r en ding 30 th Ju ne, Sep t emb er, Dece mb er and March) a nd sen d to th eir cou nterp arts of the Acco un ts Dep artmen t on 10th of July, Octo be r, Ja nu ary an d April resp ectively for ve rification . Dispu t es sh ould be se ttled a t this stag e a nd a ccep t ed qua rt erly sta t emen ts sh ou ld be con s olidat ed a nd sen t to the CO R section . 3. The amo unt s actua lly reco vered as a re sult of furthe r revie w b y Railwa y Administration in th e ca se of e st ab lishment bills should be split-up into pay, DA, TA, NDA, NHA et c. an d th e sp lit up of th ese figu re s sho uld a lso be g ot accep t ed by th e Accounts Department. 237 . Tour notes of Pr incipal Director of Audit/ De puty Di rectors. Tour not e s o f Pri nc i pa l D i r ec t o r o f A ud it / Dy.Dire ctors sh ou ld be mad e over to Co -o rd inat io n se ctio n for takin g o ut co pies an d d esp atchin g to divisions/sections concerned for ne cessary action. Divisions/sections sh ould send their reports t o ECPA section in re spect o f items re ferred to them a s exp ed itio usly as p ossible. The ECPA section will pu t up the re p o r t s t o Pr. D ire ct or o f A u d it / D y . D i re c t o r f o r o rd e r s . Principal Director of Audit, Central Railway 102 238 . Submission of arrear l i st of outstanding letters to Pr.Director of Audit. All section s a t He ad qua rters sh ou ld s u bmi t a rr ea r r ep or t s o f A , B & C dak letters and all divisions/section s s i t ua t ed a t ou t s t at io ns s h ou ld su bmit th eir rep ort of C dak le tters t o C O R s ec t i on in t he pro f orma prescrib ed fo r th e pu rpose by 10 th of th e mon t h following t o which the re turns relate. 2. The arre ars re po rt s sh ou ld in dicat e po sit io n of le tters re ceived du ring the calen da r mont h b ut no t d isp ose d o f b y 7 t h da y of the fo llo win g mo nth . CO R section should submit consolidate d a rre a r re p o rt t o Pr. Di re ct o r o f Aud it by 1 5t h . A s u it a bl e n ot e s ho ul d b e m a de i n t he c al en da r o f r et ur n s . 3. While submitting the return s the following instruction s sh ou ld b e borne in mind. 1. Deta iled p articu lars of lette rs ou tstan ding ove r on e mo nth a nd the re aso ns th erefo r sh ou ld be given . 2. Divisions/ se c tion s at ou tstat io ns shou ld in dicate fu ll p articulars o f le tte rs o utsta nd in g o ver a we ek wh ere h ea dq uarte rs se ctions have c al l ed f or i nf o rma t io n e t c . o n C A G ' s letters together with reasons for outstanding. 3. No.A dak letter should be treated as f i na l ly d is p ose d of u nl es s a f in al re ply ha s be en issu ed or the le tter ha s be en file d un de r Bra nch Officers orde rs. (Aut hority: POO NO.1 05 4 of 3 0.1 .79 a s amen ded by PO ONo.1 057 dated 21.3.79) 239 . Meetings of Sr/ Audit Offi cers. Pr.Director of Audit will hold period ica lly, wh en ever n ece ssa ry a me eting o f all Sr/ Aud it Officers to discuss items of co mmo n inte re st. Ag en da f or the me eting with a b rief n ote on t he su bjects fo r discussion sh ou ld be prep ared at lea s t a fortnigh t befo re the da te o f the me eting an d circu lated to th e Sr/AuOs t o en ab le them to come prep ared with the ir views. Th e fo llowing items wou ld howe v er be con s id ered in the discussion du rin g th e mee t ing. a) b) c) d) e) f) Arrea rs in t he office Po sitio n in re gard to ch eck of App ropriation Acco unt s Po sition in re gard to Draft paras Pro ce s s i ng o f d ra f t pa ra s St af f w e lf a re Likely subjects f or special investigat io n 2. T he s ec t i on s ho ul d a ls o re c or d a nd circula t e th e minute s of t he me eting . Th e minu tes of me eting indicat in g a ct io n ta ken t hereo n sh ou ld be p ut u p to ADAI ( R ly s ) d u r in g h is / h e r v i s it s t o t h e o f f ic e . Office Manual 103 240. Li st of cases/registers to be submitted to the ADAI (RlysError! Boo k ma rk n ot def in ed . ) d u r i n g h i s / h e r v i s i t: The fo llo win g re gisters and files sho uld be co llect ed an d kep t ready for submission to ADAI (Rlys) during his/he r visit. Sr no. Name of the Register Authority Sn/Dn.concerned 1. Register showing the results of review of Accounts office work para 56 of secret MOI allsections./.divns. (except Admin.,ECPA & COR) 2. Report on the Efficiency of Internal check Do COR 3. Register of Inspections and record of progress of Inspections para 426 RAM All sections/divns. (other thanCOR,Admn & ECPA) 4. Register of Investigations by ECPA section para .. RAM ECPA 5. Register of Important results of Audit para 496 RAM COR 6. Register of Recoveries at the instance of Audit 7. Register of draft paras Principal Director of Audit, Central Railway Au/COR/85 -do- COR COR 104 CHAP TER VI I REPORT 241 . Duti es. R e p o rt s e c t i o n wa s cre a t e d w. e . f . 1 . 3 . 8 8 t o d e a l w it h t h e w o r k re la ting to draf t Audit Pa ra graphs for inclusion in the Report of Comptroller & Au ditor Ge ne ra l of In dia-Union Gove rn men t (Ra ilways) (A uthority POO no.1016 dated 4. 8. 75,CAG(R)'s le tter nos.170-35-RAI/82/87 da ted 31 .3.8 7 a nd 50 1-BRS/4 34 / 87 -I d ate d 1 1.2 .88 ) 2. The fo llowing du tie s are also p erformed by th is Section . a. To proce ss an d fina lise all DPs, C entra l Re vie ws and Lo cal reviews on top ics se le cted an d marked by C&AG fo r Ra ilway Aud it Repo rt s. b. Th e section will deal with t echnical wo rk rela ting to scrutiny of Special le t t e r s , Pa rt I Au d i t No t e s Pa rt I I n sp e ct io n re p o rt s f ro m Di visi o n s a n d He ad qu arters se ctio ns to id en tify p o tential draft Audit Paragraph cases. Progress in disposal of such cases w il l be w at c h ed b y t he s e c t io n. A ll cases re ceived from other railways or CAG’s office for in vestigation will be co-ordina t ed by Rep ort sect io n. c. To d ea l w it h a ll ma t t er s co nc e rn in g pe riod i c al m ee t i ngs of t he Pr.Director of Au dit with Branch Officer s in c lu di ng c o llect io n of ma t er i al fro m a ll section s /division s for inclu sio n in the a gen da . (Au/Rep / CS/6 524 dat ed 1.12 .88 ) d. Issue of Draft Parag ra ph s an d Correspo nd en ce relating the reto. e. Wo rk relating to provisional para gra p h s i s s u e d b y t h e C AG ' s o f f ic e . f . Wo rk r e l a t in g t o PA C ma t t e r s (Aut hority POO 11 15 -d ate d 23 .5. 88 a nd Au /COR/13 1/6 311 da ted 20 .12 . 89 ) 242 . Draft Audit Paragraphs. Pa ra grap hs are issu ed a t th e leve l o f He ad(s ) of Department. Prior approval of ADAI (Railways) is not nece ssary for issu e o f Dra ft Au dit Pa ra grap h. Th ese sh ou ld ge ne ra lly be the ou tcome of importa nt obje ctio ns taken up wit h ra ilway Administration through Au dit Notes, Inspection Report s a nd S pe c ia l l et t e rs . P ro c es s i ng o f ca ses at t he stag e o f Audit No tes/I n spe ction Repo rt s an d special le tters sh ou ld be tho ro ug h an d we ll do cumen t ed so th at a s an d whe n Draft Para is issued, Railway Administra tion will be in possession of all facts on wh ic h the a ud it commen t is b ased . O nly ma terial wh ich is importa nt en ou gh to feat ure in a ud it Rep ort shou ld be issue d as Dra ft pa ra . Th e mate rial, for propo sed Dra ft Pa ra s sho uld b e th oroug h with all f acts a nd f ig ures well su pp orted b y ke y d ocu me nts with acce ptan ce of fa ctua l po sitio n by the office in spe c ted an d also with rep ly of Ra ilway Ad min istratio n t o t he Au dit obje ct io n. (CAG(R)' s le tter no .17 0-35 -RAI / 8-2/8 7 d ate d 3 0/3 1.3. 87) 2. If reply from Railwa y Administration to au dit ob je ction s is no t re ceived/ not likely to be re ceived with in the no rma l time a nd eve n a fter issu e of re mind ers, th e ob jection s ma y be conve rt ed in to d ra ft au dit parag raph s on merits o f th e ca se, with th e a pp ro v al of Pr. Directo r o f Au dit. 3. D r af t A ud it p ar ag ra ph s s ho ul d b e i s s ue d w i t h a l l s u pp ort i ng k e y docu ment s to Railwa y Administration und er de mi-official le tter from Pr. Di r e c t o r o f A u d it t o t h e p e r s o n a l add ress of th e Ge ne ra l Man ag er with a Office Manual 105 co py to the p erson al a dd re ss o f th e FA&CAO an d He ad (s) of de partmen t co nc e rn ed . 4. A cop y o f the draft Au dit Pa ra grap h to geth er with key do cumen t s sh ou ld a l so b e s en t d em i -o f f ic i a ll y t o D i r ec t or (A c c oun t s ) R ai l w ay B oa rd . A c o py of t he d ra f t p ar a t og et h er w i t h k ey do c um en t s i s a ls o t o b e s en t t o ADAI (Railways) New Delhi demi-o fficia lly. Instruction s co ntain ed in Ch apter XXIII of the Railway Audit Manual should also be borne in mind. 5. N or ma ll y a l l Draf t Au dit P ar ag ra ph s f or i nc l u si o n i n t he R e port of C A G to b e p re s en ted to in a p articular yea r shou ld b e issue d b efo re 30 th June of the p re v io us year. As Au dit Re po rt s are trea ted a s con f ide ntial docu ment s t ill the y a re prese nte d to the Pa rliamen t, Dra ft Au dit Parag ra ph s an d co rresp on den ce th ereo n sh ou ld also be tre ate d a s co nfid ent ia l. 6. The Railwa y Ad ministration are req uired to fu rn ish the ir rep lies to the Draf t Aud it Pa ragrap hs within the prescrib ed time limit of e ig ht wee ks o ver the pe rso na l sig na t ure of the Ge ne ra l Mana ge r or sh own as issu in g with his/he r p erson al ap prova l. 7. Fina l rep lie s to d raft Au dit parag raph s sh ou ld be scrutinised immed ia t ely on rece ip t a nd co mme nts th ereon shou ld be fu rnished to the ADAI(Railwa ys) with u t most e xpe dition. The p arag ra ph s will be fina lly edited by the ADAI (Railways). 8. All info rma t io n requ ire d to be furnishe d for fin alisin g the para graph s sh ould be got duly vetted by the Railway Administration. 9. Pa ra grap hs ap prove d b y ADAI (Railways)for inclusion in the Audit Re po rt w il l b e i s s ue d by ADAI ( R ai l wa y s ) t o R ai l wa y B oa rd . T hese a re ca lle d Provisio na l pa ra grap hs.The Administra tions reply t o these parag raph s shou ld be scru t in ise d a nd se nt to t he ADAI (Ra ilways) tog eth er wit h t h e c o m m e n t s o f t h e P r. D i r e c t o r o f Au d i t . 10. Draf t Aud it Pa ra grap hs on case s/irregu laritie s not ice d d urin g review o f sa nctio ns pe rta ining to more th an one Railwa y or Railwa y Bo ard' s file co nn ecte d with ten ders, co ntracts etc. a nd on c as e s w he re t he s am e t y pe of irregu larity exists on more th an on e Railwa ys a re p repa re d by the ADAI(Railways) after collecting necessa ry in formation from all Railway Audit Offices. I n such cases, informa t io n req uired shou ld b e se nt t o ADAI (Railways) after gett in g it vet t ed by FA&CAO . 11. Whe neve r ADAI (Railways) d ecide s to drop a Dra ft Au dit Parag ra ph , Pr. Di r ec t o r o f Aud it w i l l b e ad v is e d b y h im . A D r af t A ud it P ar ag ra ph s h ou ld not be t re ate d as d ro pp ed un til a communicat io n is sen t by Pr. Directo r o f Audit t o Railway Ad ministration. (CAG(R)'s letter no.4403-RAI/A8-682 dat e d 2 1. 1 2. 6 2) 12. D r af t Au dit Par ag ra ph ( i ncl ud in g R ev i ew N ot e s ) s ho ul d be s e ria ll y numb ered fo r e ach (fina ncial) ye ar and pa sted in a re gister (vide An nexu re 22 to th is Ma nu al) wh ich sh ould be sub mitte d to Pr.Dire ctor of Au dit on 10th of every mon t h. 243 . Railway Audit Report. On rece ipt of pub lish ed Au dit Re po rt, Rep ort Section should check facts a nd figu re s given in Au dit Rep ort in respe c t o f ca ses affe cting th is ra ilway an d bring to th e no tice o f ADAI (Ra ilways) with out a ny de lay an y impo rta nt co rrections consid ered necessary by Principal Director of Audit, Central Railway 106 Pr.Directo r of a udit. Co pies o f Aud it Rep ort shou ld be d istribu ted to Ra ilway Administration/sections/divisions. 2. Fro m amon g items relating to o t he r railways, Pr.Direct or of Audit will, if necessary se lect items to be taken up f or in v es t i ga t i on o n t h is r ai l wa y . Wh ere fina l act io n is p en ding o n an y para graph in clude d in th e Au dit Re po rt, th e section co nce rn ed sho uld b e asked periodically t o in tima te the la test position. 244. Memoranda for Publi c Ac counts Com m ittee: Information furnished by the Railway Administration for prep aratio n of n ote s/memoran da for the Pub lic Acco unt s Co mmittee sh ou ld be ve rified b y Re po rts Section a s and wh en re c eiv ed . 2. The result s of verification should also be advised to ADAI (Railways) promptly. All wo rk in co nn ection wit h Pub lic Acco un ts Committee Rep orts sh ou ld be do ne by Re ports se ctio n. 245 . Rev i ew of Pa rt I Audi t Notes/ Inspec ti on Re ports and Spe cia l letters. Co p i e s o f t h e Pa rt I Au d it No t es/Insp ection Rep orts a nd Sp ecial le t t er s i s s ue d b y t he s ec t i on s / di v i s io ns a re r ec e ive d i n Re po rt s ec t i on . Th es e s ho ul d b e s ub m it t e d t o t h e Pr. D i re c t or of Aud it ev ery m on t h d ul y re viewed with a view to pick up potentia l cases for Draft para s. 2. Report section ma intains a register e n t i t l e d " R e g ist e r o f P o t e n t i a l D ra f t Paras cases in the proforma prescrib ed ( v i de A nn ex ur e 2 3 t o t h is M an ual) . Th e Re gister sh ou ld be p ut u p to Dy . Di re ct o r/ Pr. Di re ct o r o f Au d i t b e f o re the 10th of every mon t h. (POO no s.82 2 da t ed 26 . 3. 6 3, 1 03 0 d t d 1 5. 10 . 76 and 11 15 da ted 23 .5.1 988 ). Office Manual 107 C H AP T ER VI I I EFFICIENCY-CUM-PERFO RMANCE AUDIT 246 . Duti es of ECPA se ction. D ut ie s of ECPA s ec t i on a re ou t li n ed in paras 5 6 to 59 of CAG’s Ma nu al of s t a nd in g o rd er s (A ud it ) an d c h ap t er XXIV o f Railway Aud it Manu al. The importa nt fun ct io ns of the section a re as fo llows. i. Un de rta k ing sp ecial inve stig atio ns on imp ortan t to pics. ii. Stud y of pub lish ed statistics of Railways etc. (see Annexure 24) iii. St ud y o f App re c ia t i on R ep or t s a nd o t he r pe rio di c al r ep or t s su bmi t t ed b y the Ra ilway administration to the Ra ilway Board. iv. I n t e rn a l i n s p e c t i o n s o f se ct io n s o f t h e a u d i t O f f ice v. Intensified in spection of Offices of He ad s of de pa rtme nts and corre spon ding divisio na l offices. 2. Items for in vestigatio n by ECPA sec t i on are s el ec t e d b y t h e Pr. D i re c t or of a ud it in acco rd an ce with Chap ter X XV of RAM. In addition, Pr.Director of Audit/Dy.Direct or will mark in vestiga t ions req uirin g in de pth stud ie s, fro m th e to pics sugg este d by th e ADAI(Rlys), Pr.Directo r o f Aud it o f oth er Ra ilways or from th e impo rta nt obje ctio ns raise d b y th e a ud iting sections/divisions of t his office, co pies o f which a re re ceived in Coordination section. ECPA section should arrang e colle ction of in formation eithe r throu gh co rresp ond en ce or whe n the ma tter is urge nt shou ld dep ute the section staff to collect informatio n from th e re cords o f Railwa y Administration . (POO n o.1 05 3 d ate d 2 3.1 .79) 3. T h e ECPA s ec t i o n o n it s own w i ll u nd er t ak e i nv e s t ig at i on o f t o pic ma rke d by Pr. Direct or of Au dit. Assistan ce of con cerned se ction s/division s will b e take n when eve r use f ul ma terial on sele cted to pic is ava ila ble with section / divisio n c an b e f or w ar de d t o ECP A s ec t i on . (A uthority: POO no.1078 dated 22.1.81). 247 . Effi ciency-cum-performance Audit. Para s 5 6 to 58 o f CAG' s Ma nu al of s t a nd in g o rd er s ( T ec hn i ca l ) E v en t ho ug h f o r t he pu rp ose of c e rt if y i ng the accounts, routine checks have to b e c a r r ie d o u t t o s a t i s f y t h a t t h e ac c ou nt s a re c or re c t an d p re s en t a f a ir v i ew of f in an c ia l r es u l t s f or t he ye ar, t he emp ha s is of go v er nm en t A ud it ha s u nd er go ne c on s id erab le ch an ge s. Th e reg ularit y o f exp en diture with which a ud it is mainly co nce rn ed ha s grad ua lly yielde d p lace to a wid er co ncep t via wh eth er the expe nd itu re ha s be en incu rre d wit h wisdom, fa it hfu ln ess an d e con omy. With th is vie w in e nd , re vie w of ef ficien cy of p ro je cts un de r e xecut io n such as co nstruction o f n ew lines, do ub ling o f lines, remod ellin g o f ya rd s, re mo de lling o f workshop s, au gmen tin g rep air fa cilities, tran shipmen t sh ed s, imp ro ved sign allin g arrang eme nts which a re in a n a dvan ced st age and e fficie ncy-cum-p erforman c e aud it o f similar oth er sche mes, when co mpleted and put to use should be taken up. 2. Efficiency of construction may be reviewed with refere nce to expedition with which surveys an d finalisation o f ten ders we re co nd ucte d, actu al co mme nce ment of work a nd p erio dical prog re ss co mp ared to o rig in al sch ed ules et c. wh ile, typ e o f wo rk fo un d ne cessary an d soil me t with during actu al exe c ution of wo rk wo uld be an in dex of th e a ccuracy o f techn ical a pprecia tio n of estimates, pa ttern of rate s ob taine d, in t end ers Principal Director of Audit, Central Railway 108 and a ny specia l asp ects of constru ctio n or te rrain , might h elp in reviewing the dep en da bility o f fina ncial foreca st vis-à -vis th e act uals. 3. The co -relatio n of ac tu al expe nd it ure with p hysical prog re ss from time to time wou ld also in dicate fin ancia l efficien cy o f e xecu t io n of works. The re vie w wo uld th us a ssess a ct ual p erformance bo th t echn ica l and fina ncial in re la tion to o rigin al plan ning an d a nticipat io n. 4. Ap art from exa minin g t he po in ts d eta ile d a bo ve, following asp ects ma y als o b e giv e n du e c o ns i de ra t io n t o s ee t ha t s c he me s w er e u nd er t ake n a f t er a care ful an alysis o f e c ono mics th ereo f. a) Whe t he r f air and wide pu blicity wa s given to ten de rs t o make t h em c om pe t it iv e a nd w h et h er s anc t i t y of o pe n t e nde rs w a s d ul y maint ained , wh eth er rejectio n, if an y, of lower t end ers wa s on a deq ua te grou nd s a nd wh eth er in ca ses of a llo wing price p re f eren ce on acco un t of e arlie r d elive rie s , the stipula t ed delivery period was strictly observed. It sho uld a lso g ene ra lly be seen whe t he r sco pe f or re ceivin g co mp et i t i v e r a t e s is s u f f i cie n t o r i t r eq ui re s i mp ro v emen t . b) W he t he r i n t he ca s e o f w o rk s un de rt a k en on u rg en c y c e rt i f i c at e , th ere wa s a ny de la y in prep aring tech nical estimate s, works we re comp le ted exp ed itio usly an d th ey were pu t to the expe cted use imme diate ly afte r co mpletion . c ) Whe t he r works had bee n left inco mplete , o r th eir p ro gress slowed d own whe t he r the circumsta nces resp onsible th erefo r co uld no t b e f o re s ee n w el l i n t i m e t o a v oid in f ru c t uo us e x pe nd it u re , b lo ckin g up of fun ds etc. if a ny wo rk ha s b een t re ate d a s a ban do ne d, it sho uld be se en whe t he r its co st is promptly written d own fro m Capita l to De preciatio n Re serve Fu nd with a view to reducing dividend liability. d) Whe t he r t here are a pp aren t facts in dicative of likelih oo d o f e normou s id le ca pa city o n comp le tio n o f ce rtain sche mes or whe t he r tra ffic o fferin gs are expe cted to be ve ry in ad equ ate , resu lting in th e add itio na l cap acity crea ted rema in in g un use d. If so, wh eth er Administration ha ve take n ste ps to arre st magn it ude o f in fru c tou s e xpe nditu re to find a lt ernat ive me ans to ma ke be st u se of th e asse ts. It sho uld be specia lly see n whe t he r th e works, th oug h a lmo st complet ed, h ave no t be en t hrown o pe n fo r traf fic to a vo i d an y c r it i c i s m a bou t la c k o f e ar ni ng s a nd / or are al l ow ed t o drag on with comparatively poor progre ss on some physical a sp ects ju st to e xplain away th e d elay in ope ning of the line s. e) W he t he r i n t h e c as e of p ar t ia lly c om p le t ed wo rk s , t he n um be r o f sta ff employe d h as be en broug ht d own a nd exp end it ure on oth er a ncillary items p ro portion ate ly re duce d. f ) In th e ca se of ne w lin es or d oub lin gs, wheth er t he lin es have b een th ro wn op en for spe eds men t io ne d in th e projects estimate s o r n ot; if n ot, the re aso ns fo r sp ee d restrictions and its fina ncial e f f ec t o n w o rk i ng s ho ul d b e e x amin ed . g) Whe t he r a ny majo r ch an ges in spe cificat io ns laid down in e st imat es o r t end ers ha ve taken pla c e a nd if so, their fina ncial e f f e c t s h o u ld b e e x a mi n e d . Office Manual 109 (ADAI (Rlys) A/ 1 37 / Vo l. I I ). le tter no.1047-RAI/8-5/65 dt.11.4.1966. File 5. Railwa ys en jo y mo re or less mon opo ly position in the matte r o f tra nsp ort of p assen ge rs a nd goo ds. Pro f itab ility un der th e circu mstance s doe s n ot n ece ssarily in dicate eff icien cy of op eration . Efficien cy-cumperfo rman ce au dit t here f ore re qu ires more emph asis and the fo llowing poin t s re qu ire sp ecial a tten t io n: a) Ade qu ate utilisat io n of ca pital asse ts: Ap art fro m u t ilisatio n of e xisting assets it has to be seen in these ca se s of ne w constru ctio ns th at asse ts c re at e d are us e f ully emp lo y ed s o a s t o y ie ld a nt i c i pa t ed r es u lt s . T hi s will require study of Project Reports, time sche du le of co nstruction , ant icipa t ed fina ncial resu lt s, use o f ca pital a ssets cre ated a nd fina ncial re sults actu ally obta ined . It sh ou ld also b e se en tha t facto rs on wh ich ju stif ica t io n f or cre ation of asset s wa s ba sed , ha ve b e p rope rly g au ged and t ha t t he re has b ee n no s ub s equ en t de v el op me nt w h ich have chan ge d the flo w of traffic, resulting in und er-u tilisat io n of th e fa cility. Th e re vie w sho uld bring ou t fu lly th e ba ckg roun d obje ctive s, initial est i m at e s o f i nv e s t m en t s , f i n anc i a l j us t i f i ca t i on a nd h ow t he se we re def ective(if so ) an d how far the se have b ee n re alised in actu al execu t ion a nd su bse qu ent t ra ffic a ris ing or ma terialisa t ion o f workshop lo ad s etc. b) Execu t ion of co llab oratio n a greeme nts a nd big co ntracts: It is eq ua lly impo r t ant t o w at c h e x ecu t io n o f s uc h a gr ee me nt s a nd co nt r a ct s , besi de s aud it of th ese do cumen t s at t he in it ia l st a ge . c) Spe c ia l atte ntion is to b e p aid t o co ntracts fo r prod uction or construction wh ere such contracts w e re e nt e re d i n t o on t he b as i s o f neg otia tio n. 6. Review o f the e ffect of introd uction o f electric traction . The effe ct o f dieselisation o r electrifica t io n of tra ctio n on the railway sh ou ld be periodically reviewed with specia l ref erence to Volume of traffic before and afte r intro ductio n of electric tra c tio n, lo ad of trains, Spe ed of t ra in s , Line ca pa c it y . 7. As un de r the de cent ra lised Divisio na l se t u p, th e releva nt initia l reco rd s re la ting to works viz.Wo rks Register etc. are ma intained at the Divisions/Construction Unit s etc. the Efficiency-cum-Performance Audit Re v ie w of w or k s i s u nd er t ake n by t h e Divisio nal Au dit Office s/Branch Au dit Offices conce rn ed to a ssess the a c tual pe rfo rma nce bo th tech nical and fin an cia l in re la tion to th e orig in al plan ning a nd a nticip ation s. A reco rd o f su ch works reviewed should be kept by the resp ective Divisions/Sections. Re po rts o n re view alon gwith full particulars of th e sche me s take n for the re vie w sh ou ld be sub mitte d to the ECPA section by th e 1 5th of Ma y each ye ar. A C en t ra l r ec o rd o f s c he me s s o re v i ewed sh ou ld als o b e k ep t by t he ECPA sect io n an d submitte d to the Pr. Directo r of Au dit alon gwith the re port to be sent to t he CA G(R) by t h e mid d l e o f Au g u s t e a c h y e a r . (CAG (R)' s le tter no .23 01 -RAI/ 8-7/6 6 dt. 23. 8.66 an d ADAI (Rlys)' s o rd ers dt.1 6.4 . 69 on t he Note in file Au/ECPA/1 75 a nd CAG ' s lett er n o.1 546 RA I / A1 2 - 4 0 / 6 3 d t . 1 8 . 5 . 6 3 ) 248 . Review of General Manager's Annual Re port: ECPA sectio n should re vie w ge nerally th e Ge ne ra l Mana ge r' s Ann ua l Re po rt to Ra ilway Boa rd Principal Director of Audit, Central Railway 110 and sub mit a not e to Pr. Directo r o f Aud it brin ging ou t imp ortan t po in ts, if any. 249 . Review of other Reports . The section should review th e fo llowing re ports with a view to sele ctin g ite m s therefro m for furt her investig ation eithe r b y itself or by othe r auditin g u nits, a s ma y be directe d. i. R a ilw ay B oa rd ' s Ann ua l Re po rt ii. D i g e s t o f I m p o r t a n t a n d Interesting ca ses appearin g i n t h e Au d it Bu l le t in and init iat e simila r investig ations a fter obtaining Pr.Director of Au dit's app ro val. Su gg estion s may also be p ut up to Pr.Directo r o f Audit for in v e s t i g a t io n s t o b e c a r r ie d o u t b y se ct i o n s/ d i vi sio n s. 250 . Reports of Estimate Committee: Th ese rep orts shou ld be critica lly examine d as an d whe n received and re sults su bmitted to Pr.Dire ct or o f Aud it . 251 . Reports of Different Comm ittees set up by Central government: Th ese re ports ha vin g fina ncial be ar in g sh ould b e scrutinised by ECPA se c t i on , as an d w he n t h ey a re re c ei v ed a nd re s ul t s s ub m it t e d t o Pr. Di r e c t o r o f Au d i t . 252 . Review of Railw ay Budget. A broa d re vie w of In dian Railwa ys, Bud ge t wit h sp ecial refe re nce to Ce ntral Railways e s tima tes sh ou ld be ca r ri ed ou t b y ECPA s ec t i on i n M a y / J un e e ac h y ea r a nd r es u lt s su bmi t t ed to Pr.Director of Au dit. This review s ho ul d, i nt er -a li a b r in g ou t i mp ac t o f f iv e y e a r p la n s , c o rp o r a t e p l a n s etc. on Ra ilw ay f in an c es, n ew s c he me s propo sed a nd au dit a rra nge men t s which wou ld e v en tua lly b eco me nece ssary in con ne ctio n with the se sche mes a nd projects. 253 . Review of Progress Report on economy. F o llowi ng r ep or t s a re su bmitted qu arterly to G en eral Mana ge r: i. Elimin ation of avo idab le de la y in fin alisin g ten de rs a nd p la c ing o f co ntra ct s and ii. Time ta ke in pa ssin g co ntracto r' s b ills fo r wo rk don e and ve ndo r’s b ills for materials sup plied. Th ese s h ou ld b e re v ie w ed b y t h e ECP A s ec t i on a nd i nt e r es t i ng p oi nt s , i f any, re ported to the ADAI (RlysE r r o r ! B oo k m a r k n o t d e fi ne d .). (Rly.Board’s lett er no.75/O&M/ 51 Pt .II dt.30.9.75 endt.No.336-RAI / 8-23/62 d t . 2 . 2 . 6 3 A u / E CP A/ X / 4 ) . and ADAI (Rlys) 254. Review of Appreciation and o th e r R e p o r ts s e n t b y v a r i o us de partments of Rly. Adm n. to Rly. Board etc. Co pies o f mon t hly App re c ia t i on a nd ot h er p er i odic a l R ep or t s s u bmit t ed b y C om m er c i al , O pe ra t in g, Sa f et y a nd S t at i s t i c al d ep artment s, Fu el Econ omy Re po rts e t c., are r ec e iv e d i n E C PA s e c t io n. T hes e s ho ul d b e r e v ie we d a nd a n ot e brin ging int eresting cases/ext racts, if any, should be submitted to the Branch Office r d uring the last we ek o f th e se con d f ollo win g mo nth / qu arter to wh ich th e re ports re la te. (Au/COR/1 07/ 241 20 d ated 1 2.3 .68 an d C.A' s orders dated 5. 5.71. Au/ECPA/ 83 and Au/ECPA/X/2.) 255. Suggestions Award Scheme: Sug ge stions award scheme ha s b een in tro du c ed in t his of fice with a vie w to stimu late origina l thinking a mong me mbers o f staff and th ereb y imp ro ve e fficie ncy a nd prod uctivity. All the me mbers of sta ff a nd o fficers ma y give th eir su gg estion s in writing (b oth in Eng li s h a nd H i nd i i f t he s u gg es t i on s i n o ri gi na l ly i n H in di ) f o r e f f ec t i ng Office Manual 111 improve men ts in a ud it, a ccoun ting a nd hou seke epin g proce du re s wh ich co ntribu tes to the econ omy, e fficien cy or increase d e ffective ness o f ope ra tion s. Sug ge stions ma y be of two type s viz. a . sug ge s tions h aving lo cal a pp licat io ns wh ich do n ot ha ve re percussio n elsewhe re and wh ich ca n be impleme nte d by this office with ou t the a ppro va l o f t he CAG 's o ffice and (b). sugg estion s h aving wide r ap p l i c at i on a f f ec t i ng a l lied o f f i c es and in volvin g ch an ges o f prescribe d rules o r p ro ced ures which re qu ire a pp ro val o f C AG ' s o f f i c e . 2 . Pr. D i re c t o r o f A u d it h a s co n st ituted a Screening Committ ee f or this purpo se con s ist in g of Dire ctor an d de put y Dire ctor of Au dit, Sr/ Au dit O f f i c e r (O &M U n it ) a n d Sr/ Aud i t O f f i cer(C&COR) as regular memb ers and Sr/ A u d it O f f i c e r s ( s ) d e a l i ng with the subject (s) f ro m HQrs o ffice an d Sr/ Audit Officer f rom selected division a s c o -o pt e d me m bers . T he c o mmi t t ee sh ou ld me et o nce in a q ua rte r in Fe brua ry, May, Augu st an d Nove mb er each yea r co in cid ing with official la ng ua ge imple me nta tio n Co mmitte e' s qua rt erly me eting s fo r co nside rin g th e su gg estion s receive d u pto previou s qua rt ers e nd in g J an ua ry , Ap ri l , J u l y a nd O c t ob er r es p ect i v el y . F in al decision o n the sugg estion s accep t ed sh ou ld be se nt to th e CAG' s o ffice expe ditiou sly b y ECPA section . 3. All bran ch Sr/ Au dit Off ice rs sh ould give widest possible pu blicity ab ou t the sche me amon gst staff working in th eir sectio ns and division s (CAG ' S office letters n o . 2 5 9 -TA I / O &M/12-78 dated 23.3.79 and Au/ECPA/XIII/6/2245 dat ed 5.4. 79). 256 . Inte rnal Inspec ti on by th e Dire ctor of Inspe ction. E CP A s e c t i o n sh ou ld act a s lia iso n b etwe en Directo r o f Insp ection pa rty a nd oth er aud itin g se ction s of office. Insp ecti on r ep or t i s s ue d b y D i re c t or o f Inspection should be dealt with by ECPA section in consultation with other aud itin g section an d ne cessary in st ru ct io ns issued from ECPA section to ens u re t ha t i rr eg ul ar i t i es po i nt e d ou t b y Dir ec t o r o f Au dit d o n ot r ec u r. 257 . Internal Audit. ( Para 5 63 t o 5 66 of C AG ' s Ma nu al of s t a nd in g o rd er (Audit)an d Ch apt er XXV of the Railwa y Au dit Man ua l. ECPA sectio n is entru sted with th e wo rk of in terna l a udi t o f t he wo rki ng of o t he r s e c t i ons o f the office. One section is selected b y Pr. D i re c t o r o f Aud it f o r i n t e rn a l aud it every mon t h. Th e inte rn al au dit o f all sections of office is re quired to be completed in a cycle of two year s. Selection of Sect io ns/Divis ions sh ou ld be take n b y ECPA section be fore 10t h o f eve ry mon t h and necessary advice sent to section/ division con cerne d. 2. The inte rn al au dit sh ould in ter alia co nsist in se eing : 1.wh eth er proce dural rules a nd re gu lation s are fo llo wed. 2.wh eth er vario us reg ist ers prescrib ed are ma in taine d p ro pe rly. 3. w h et h er re t ur ns a re s ub m it t e d o n d ue da t es 4. w h et h er s ec t i on s f un c t io n a s eff icien t un it s of th e o ffice. 5.wh eth er prescrib ed prog ra mme of aud it is bein g fo llowe d b y the sectio n an d wh ethe r p rocesse s of a udit e mp loyed in the section en sure a comp le te scrutin y of th e reco rd s un de r a ud it. 6.th e position o f arrea rs and wh eth er th e p eriodica l arre ar rep orts s ub m it t ed b y t he s ec t i on c once rn ed f ai t hf ully r ep re s en t t he act u al po sitio n o f arrears in th at se ction . 7.De la ys in th e dispo s al of Corre s po nde nce a nd wh eth er t hese have be en broug ht to th e n otice of th e Bran ch Officer/Pr.Dire c tor of Au dit whe re ver nece ssary throu gh we ekly re ports or oth erwise and Principal Director of Audit, Central Railway 112 whe t he r th e prelimina ry slips or d ra ft au dit no tes are close d or converted in to regula r Audit Notes in t ime after nece ssary discuss ion with the Accounts/Executives Officers. 8.Ca le nd ar o f Retu rn s: whet her retu rn s shown as ha ving b ee n sen t on da t es m e nt i on ed t he re in w er e a c t ua ll y s e nt o n t h ose dat es. 9. w h et h er q ue ri es m ad e by B O / D y . Di r ect o r/ P r. Di r ect o r of a ud it a re be ing atte nde d t o exp ed it io usly. 10 .Numbe r of p re limina ry slip s, aud it No tes In spectio n Rep orts and s pe c i al le t t er i s s ue d b y t he s ec t i on i n t h e p re v io us q uart e r 11 .whet her f iles an d othe r records of the se ctio n are ma in tain ed in a neat and systematic manner 12 .whet her prescribed prog ra mme o f au dit is itself ad eq uate or wh eth er an y modification or ad dition is n ecessa ry to en ab le Pr.Directo r o f Au dit to re cord h is/ her a nnu al certificate s on accou nts o f Railway. 13 .whet her select io n reg iste r, reg isters of cu rren t re vie w, po st re vie w, ori gi na l au dit e t c . a re m ai nt ai ne d p ro pe rl y a nd u p- t o-da t e in dic at i ng de tails of vo uche rs/ docu ment s aud it ed, re vie wed, date of co mpletion of au dit/review an d in itia ls of sta ff con cerne d. Whe t he r pe rio dical surprise test checks on listing of vouchers for audit and putting of Au dit Enface men t on vouch ers are cond ucte d. 14 .whet her se ctiona l lib rary ha s b ee n ma in tain ed up -t o-dat e b y p osting correction slip s and orders etc. re ce ived from time to time; wh ether physica l stock verification of b oo k s is d on e r eg ul ar ly and losse s/ shorta ge of bo oks if an y, a re d ea lt wit h and f in alise d with ou t omission/d elay und er san c tion of th e co mp ete nt a uth ority. 15 .whet her man -h ou r st atistics prep ar ed by se ctio n faithfu lly rep re s en t work done in sectio n. A list ch eck of statement should be carried ou t. (CAG' s lette r n o.5 89 -RAI/ 8-2/6 8 da ted 2.3 . 68 Au /DECPA/ 162 PO O 73 0 d ate d 2 0.9 .60 ) 1 6 . C h e c k o f Pa s s e s / P T O s a cco u n t s & Acco u n t a l o f I m p re st . 3. As a t es t ch ec k t o en s ur e t h at a ud it wo r k is d on e b y t he Branch O f f i c e/ S ec t i on c onc e rn ed prop erly a nd w it h ou t an y omis s i o n, o ne o r t wo impo rt ant item o f au dit wo rk of e ach Bran ch Aud it Office/ Sectio n ta ken up f or i nt er nal i ns pe c t i on a re g ot s el ec t e d b y E CP A s ec t i on an d t he r ec o rd s re la tin g to ite ms so se le cted a re sub je cted to inde pe nd en t an d tho ro ugh re -c h ec k / r e- ex a mina t i on b y t he AAu O / S e c t i o n O f f i c e r / As s i s t a n t Au d i t Officer of ECPA section as part of intern al inspection. (CAG 's letter no.589-RAI/8-2/68 dated 2.3.68 Au/ E CP A/ 1 6 2 PO O 7 3 0 d a t e d 2 0 . 9 . 6 0 ) . 4. C h ec k o f en t it le me nt s of c l as s I I Sr/ A udit O f f ic e r s. C on se qu en t on dece ntralisation o f wo rk re lating to th e prep aration o f sa lary e t c. b ills o f cla s s I I Sr/ A u d it O f f i c e rs o f t h e I A&AD th e in terna l a udit section sh ou ld test check t he entitlements of the officers. This wo rk should be comp le ted in a p erio d of two yea rs by con du ct in g the te st check to th e exte nt of 50 % e a c h y e a r. ( C AG 's l e t t e r n o . 1 3 2 5 -TA I / 3 9 8 - 7 1 d a t e d 1 2 . 9 . 7 2 Au / EC PA / XI 1(Secret ) a nd POO 987 da ted 6.3 . 73 ) 5. The issue of inte rn al insp ection re po rts a nd pu rsu an ce th ereo f till the y are fin ally close d are to be wat c hed t hroug h a Reg iste r su ita bly. Common defe c ts not ice d in a group of section s s h ou ld b e c i rc u la t ed p er i odic a lly (o nce a ye ar) so t hat such de fects ma y b e g ua rd ed ag ainst in fu ture. It is t he d ut y o f ECPA s ec t i on t o s ee t ha t de f ec t s n ot i c ed are r ec t i f i ed b y se ction s an d th at th ere is n o recu rren ce of su ch d efe cts. (POO no s. 730 dated 20.9.60 to 1033 dated 12.2.77) Office Manual 113 6. AAu O o f E CPA sho uld af t e r comp le tion of Internal Inspection of a Sec t i o n/ D i v is i on han d o v er a c op y o f in s pe c t io n n ot e s t o AA uO / S O (A ) o f the Section / Division fo r remarks. The in spectio n no tes sh ould b e a tten ded to by the Sectio n urge ntly for re ma rks an d th e no tes sho uld th en b e jointly discussed by th e AAuO/ SO (A) an d th e Bran ch Of fice r o f the Sections/Divisions inspected with A Au O ( EC PA ) a n d wit h t h e Sr/ Au O (E CP A) wherever possible. After discussion in ternal inspection report will be i s s ue d b y S r/ A ud it O f f i ce r ( EC P A). T he r ep or t s ho ul d b e f i na l ly r ep li ed to b y th e Se ct io n/Division p ro mptly a nd in any case within a fortnigh t o f the rece ip t of su ch repo rt , to en ab le ECPA section to submit result s to Pr. Di r e c t o r o f Au d i t e a r ly . (Au t h o rit y : A u / E CP A/ X I / 4 / 6 8 8 d a t e d 2 7 . 1 . 8 2 ) . 258 . Re vie w of Rosters for Sc he duled C as te s/ T r i b e s m ai n t ai ne d by Admi ni stration Section. Rost ers f or Sche du le d Cast es/Trib es mainta ined by t he Ad m in is t r at io n s e c t io n a re re qu ire d t o be c hec k e d b y AAu O / S O ECPA se ctio n eve ry yea r an d remarks in tima ted to Administration .section by the 15th of February. (CAG's l e t t e r n o . 2 1 6 4 -NG E-I I / 5 8 -7 0 (i ) d a t ed 17.1 2.7 0 f ile Au/ECPA/i-16 Co nfid entia l). 259 . Pres s R ep or t s ha vin g a b eari ng on R a ilw ay m at t e rs o r o n G o v er nm en t Aud it clipp ings of I mp ortan t pre ss re po rts app ea ring in t he lo cal news p ape r s a re t o b e s en t t o C A G ' s office O &M wing duly classified with brie f commen t s on each clip ping . Press clip ping s may be sen t in co nv e ni en t b at c h es bu t wit h in a w e ek of th eir ap pe arin g. NIL rep orts a re not re quired to b e se nt. Th ese clip ping s are to be sen t by n ame to Jo in t Director (O&M) New Delhi. (A uthorit y: Joint Director (O &M)' s DO le tter no.5 3 -O&m/ 66 -8 7 d ate d 8. 1.8 8). 260 . Intensified Inspecti on of offices of Heads of Departments and corresponding divisional offices. Two S e c t i o n O f f ic e r/ A s s is t a n t A u d i t Officers (A) are attached t o ECPA sec t i o n f o r in t e n s if i e d i n s p e c t i o n s . Sec t i o n O f f ic e r/ A s s is t a n t A u d it O f f i c e r (A ) shou ld b e u t ilised for insp ection of Offices of Heads of Departmen t s o f En gine erin g, Su rve y and co nstruct io n Commercial an d O pera t in g b ra nch es a nd Co rre spon ding Div i s io n a l O f f ic e s . S e c t i o n O f f ic e r/ Assist ant Audit Officer(A) should assist in s pec t io n o f o f f i c es o f h ea ds o f D e part m en t a nd M ec h an ica l, St o re s , Electrica l, Sign al a nd Telecommun ication an d Person ne l branch es and Co rresp on ding Division al Of fice s. Th is arra ng emen t is int end ed to en ab le Section Officer/Assistant Audit Officers(A ) I a n d I I t o sp e ci a l ise in re l e va n t fie ld a nd a lso to stu dy in terrelate d ma tters of a pa rticular bran ch o n the entire Ra ilway. Th ey sho uld a c qu aint t h e m s e lv e s t h o ro u g h l y wit h ru le s , re gula t io ns a nd w or k in g o f de pt t s . c o nce rn ed . 2. B ra nc h Sr/ A ud it O f f i c er s w h ile s en di ng prog r am me o f i ns p ec t i on s , sh ou ld in dicate req uiremen ts o f assi stance of Sectio n Officer/ Assistant Aud it Of fice r (A) fo r inte nsified insp ection wo rk, d ep end ing u pon impo rt ance of th e o ffice prop ose d to be in sp ecte d. Co -o rd in ation section wh ile c on s ol i da t in g in s pe c t io n prog ra mme o f S ec t i on O f f ic e r/ As s i s t an t Aud it O fficer (A) for inte nsified insp ection work. Th is co nso lida t ed progra mme sho uld be pu t up to Pr.Dire ctor o f Au dit th ro ug h ECPA section for ap prova l. The Pr.Dire c tor o f Audit wh ile a ppro vin g co nso lida t ed progra mme will ind ica te inspe c tions to which two Se ct io n Officer/Assistan t Aud it O f f i c er s (A ) me an t f o r i nt ensi f i ed i ns pe c t i on w or k are t o b e d ra f t ed and pe riod for which th ey are d ra fted . Co-ordina t io n se ctio n sh ould t hen advise ECPA section as we ll a s Bran ch Sr/ Aud it O fficer con cerned ab ou t these de tails. Principal Director of Audit, Central Railway 114 3. Th e comple me nt of an insp ection p a r t y i n c a s e o f a s s is t a n c e o f S e c t i o n O f f i c e r / As s i s t a n t A u d it O f f i c e r (A ) f ro m E CP A s ec t i on s h ould b e t wo Sectio n Officer/Assista nt Au dit Officer (A) and on e Au dito r o ut of wh ich one Sect io n Officer/Assistant Au dit Officer (A ) should be from ECPA se ction. The Section O fficer/ Assistant Audit Officer (A ) of ECPA section sh ou ld as fa r as p ossible b e u t ilised on in vestiga t ions le adin g to ma terial for Railway Audit Report . A list of subje c t s i l lu s t ra t i ng t he n at u re o f w or k t o be d on e by SO (A) o f ECPA se ct io n du ring these in spe ct io ns is g ive n in Ann exu re 25 to th is Manu al. Th e list is no t e x hau stive a nd n ew ite ms ma y be a dd ed as a nd w hen ne c es s a ry. Sec t i o n O f f ic e r/ A s s is t a n t Aud it O f f i c e r (A ) ECPA section should ma ke a list of s ub je c t s t o be re v ie w ed b ef o re each in spect io n an d ge t it a pprove d by Pr.Dire c tor of au dit. Th e files in He ad qu arters office of th e Ra ilway p ertainin g to the s e su bjects sh ou ld be gon e th roug h p rio r t o co mme nceme nt o f insp ection s an d a ll p ertin en t poin t s lea ding furthe r inve stig ation s d uring loca l insp ection s no ted. All ca ses of heavy lo sses, expenditure or infruct uou s exp end it ure, idling o f assets, lo sses of re venue etc. shou ld be in v es t i ga t ed t ho ro ug hl y . 4. N ot es p re pa re d b y m em be rs o f t h e i ns p ect i on pa r t y af t e r ne ce s s ar y scru tin y an d mod if ica tio n, if a ny, sh ou ld be discusse d b y the Insp ecting Sr./ Audit Officer with the officer in ch arge o f t h e of f i c e i ns pe c t ed . T he branch Sr/ Aud it Officer sh ou ld de al furthe r in th e matte r o f proce ssin g the object ion to finality. 5. Th e very impo rta nt case s whe re th ere is read y ma teria l fo r actu al st at e me nt / d ra f t au dit p ar ag ra ph , t h e c as e w i t h c o pies of s up po rt i ng docu ment s sh ou ld be se nt b y t he Bra nch Sr/ Aud it O fficer immed ia t ely with a confidential covering DO letter to Di re c t o r o f A u d i t so t h a t t h e c a s e c a n be processe d f urthe r witho ut lo ss of time by co nn ecting Railwa y Adm i n i s t r a t i o n 's f il e s a t HQ rs. l e ve l i f n e e d e d . 6. In addition, the Pr.Director of Audit / Dy.Director will mark to ECPA se ction in vestiga t io ns req uirin g in de pth stud ie s eithe r f orm th e to pics su gg este d b y the ADAI (Rlys) o r Pr. Directo r o f Au dit o f oth er Railwa ys or fro m th e impo rtant o bjection s raise d by the a uditing se ctions/d ivision s o f this office, copies of which are re ceived in Re po rt se ct io n. ECPA section sh ou ld arrang e co lle ctio n o f in formation eith er throu gh corre spo nde nce or wh en the matte r is urgen t, sh ou ld de pu te t h e se c t i o n ' s s t a f f t o c o lle c t t h e in f o r m a t i o n f ro m t h e r e c o rd s o f t h e Railway Administration dire ctly. (PO O no. 1 05 2 d at e d 2 3. 1 . 79 ) Office Manual 115 C H AP T ER I X BOO KS & BUDG ET INCLUDING AP PROPRI ATIO N AUDIT 261 . Fo r d eta iled in st ru ctio ns see Ch ap ters XIX an d XX o f th e Railwa y Aud it Ma nu al. This section is resp on sib le for the au dit of G ene ral Boo ks and Acco un ts of Cent ra l Ra ilway in clu ding a udit of Ca pital a nd Reve nue Accounts, Finance Accounts, Debit Head r ep or t , App ro pr i at i on A c co un t s and oth er co nn ected state me nts. Work don e in Division s, Co nstruction units a nd Worksh op an d Stores Accou nts offices in this respect has to be aud ited by th e co rresp ond ing aud it section s/divisio ns o f this of fice . 262 . Duti es: The du tie s of th e Boo ks & Bu dg et Section in th e h ead qu arters are as follows: a. Aud it of Ge nera l Bo oks a nd Accou nts an d o t he r items a s p er the prog ra mme of Audit in the secret Memo ra nd um of I nstruction s . b. Aud i t of t h e A pp ro pr ia t i on Ac c ou nt s ( C iv i l an d R a ilw ay G r a nt s ) c. Aud it of the conso lid ate d Ca pital an d Re ven ue Accou nts, Fin ance Ac c ou nt s a nd D ebt He ad R ep or tE r r o r ! B oo k m a r k n o t d e fi ne d .. d. Issue of th e Aud it ce rtifica t es o n th e Ma rch Acco unt s, Ap propriation Accou nts, Cap ita l a nd Reve nu e Accounts, Finance Account s & Debt He ad ReportE r r o r ! B oo k m a r k n o t d e fi ne d .. Th e d et a ils o f t he w or k do ne in t he Se c t io n a re giv e n b el ow : 263 . Sancti ons: All s an c t io ns ha v in g f in an c ia l ef f ec t ac c or d ed by t he Presiden t, Ra ilway Bo ard an d also tho se conve yed b y th e Gen eral Ma na ger relating to Bo oks, Bud get a nd Ap propriation matte rs will be aud ited b y this Se ct io n with refe re nce to Sch edu le of p owers an d ca non s of fin an cia l prop rie t y. San ctio ns de alt with in Bo ok an d Bud ge t Section gen erally re la te to distrib ution of fu nd s a s ap prove d an d a dvised b y Ra ilway Bo ard to vario us units and rea pp ro pria t ion s mad e (Vid e para 36 1FI ). W hi le au dit in g s an c t i ons r el at i n g t o dis t r ib ut i o n of f un ds t o v a riou s dep artmen ts it shou ld in t er-a lia b e seen t hat to tal a mou nt distrib ute d doe s not ex c ee d t h e a mo un t s an c t io ne d b y Ra i lw ay B oa rd f or t h e R ai l wa y as a wh ole. W h ile a ud it i n g s an c t io ns r el a t in g to re ap prop riatio ns, instruction s co nt a i ned in Pa ra s 375 t o 3 81 FI a s w el l a s t ho s e c o mmu ni c at e d t hr o ugh Ra ilway Bo ard' s bu dg et orde rs on re -a pp ro pria tion sho uld b e bo rn e in mind . 264. Check of Journal Vouchers including scrutiny of adjustment mema. Detailed instructions laid d own in Para 387 of Ra ilwa y Aud it Ma nu al ma y be se en . Beside s, whe neve r, a mou nts are a djuste d b etwee n Ca pital and R ev en ue b y op erat i ng t he h ea ds "Tr an s f er s Re v en ue " an d "Tr an s f er s Ca pit al " t he C ap it al j ourn al v ou c he rs s hou l d b e linke d wit h t he co rre s pon ding Re ven ue jou rn al vo uch ers a nd vice versa. In au ditin g the jo urna l vou che rs re la ting to Tr an sfer Tra nsactio ns, Remit t ance Tran saction s , no rmally d ea lt with by Bo oks Se ctio n, it shou ld also be seen t hat (a ) Th e d eb it s ra ise d a ga in s t G o v er nm en t D ep ar t m ent s ha v e b een accep t ed b y th e dep artmen ts co ncerne d an d (b ) In case o f tran sfer t ra n s a ct io n s wit h o t h e r R a i lw a y s , n e c e s s a ry t r a n s f e r c e rt i f i c a t e s a re accomp anying the jou rnal vou c he rs an d th at sup po rting vouch ers have bee n d uly acce pted an d a lloca ted to co rrect h ea ds of a ccou nt. Selection of vo uche rs f or au dit is take n from Cap ital an d Re ve nu e In de x Registe r. Principal Director of Audit, Central Railway 116 2 6 5 . T r a c i n g the p o s ti n g s f r o m j ou r n a l V o u c h e r s i nt o j o ur n a l : T h e particulars of jou rnal vou che rs se le cted for au dit in sho uld b e a dvised b y He ad qu arters au diting section s includ in g Tra ffic Aud it section , to Bo oks & Bud ge t H ea dqu art er s Au dit S ec t i on eve ry m on t h. 2. Upo n formation of sep arate boo king se ctio n in HQrs. st ores bran ch from Apr i l’77 , t he t r ac i ng of J Vs i nt o j ou rn al i n re s pe c t o f i nt r a -r ai l wa y s t o re s tra nsa ct io n includ ing f uel sh ou ld be do ne by Sto res HQrs. Aut h o r i t y - P O O N o . 1 0 3 8 d t . 4 . 6.7 7 & SOO no.1 of Sep t.’78 Th e Ca pital an d Re ven ue Journa l Vou che rs p re pa re d sh ou ld be go t se l ec t e d t o t h e e x t en t p re s c ri be d and t r ac e d i n t o C a pit al a nd R ev e nue jo urna ls by Boo ks an d Bud ge t Hea dq ua rte rs/Aud it Se ctio n. If nu mb er o f jo urna l v ou c he rs s el e c t ed f o r a ud it d oes n ot c om e u p t o t he n um be r o f jo urna l vo uche rs se le cted for tracing in to jou rnal sub sidiary selection sh ou ld be o bta ined by Bo oks a nd Bud get He ad qua rt ers Aud it se ction to ma ke up de ficie ncy a nd g et t hese jou rn al vo uch ers also au dite d b y co nce rn ed se ctio ns. Similarly, Books & Bu dg et Au dit Section s a ttach ed to Divisions etc . should trace JVs int o jo urnals maint ained by re spective accou nting un it s. 266. Check of Monthly Accounts wi th Schedules and Journa ls (Capital & Revenue). Re c on c il i at i on o f Ac c ou nt s R eg is t e rs w i t h G en er al Boo k s (S ee item CA:IX:MOI para 372 of the Ra i lw a y A u d it M a n u a l a n d C h a p t e r I I I of AI). Deta ile d proce du re for co mpilin g an d reco nciling acco unt s h as b een la id do w n i n p ar as 3 03 t o 3 31 AI w h ich ma y b e r e f e rre d t o . 2. General Books of the Railway, th at is; Genera l Cash Book (305-AI), General Cash Abstract Bo ok ( 30 6- AI ) , J ourn al ( 30 7- AI ) a nd Le dg er ( 31 0AI) d o n ot record tra nsactio ns by su b-det aile d h ead s of a ccoun ts. In o rd er there f ore, to ha ve the de tailed cla ssifi catio n of tra nsa ct io ns a s app ea ring in G en eral Boo ks, se pa ra te su bsidiary re cords are mainta ined .(of pa ra 311 -AI) 3. Th ese are Re gister of Wo rks, Register of Capital, DRF, DF and O LW Re ven ue, Reven ue Alloca tio n Re gisters, Re gister of Ea rn in gs, and Suspense Regist ers. The different S us pe ns e R eg is t e rs m a in t ai ne d a re De mand s Pa yable Re gister, Misce lla ne ous Adva nce Re gister, O-Lo an s & Adva nce s Re gister, Dep osits Unp aid wag es Reg ister an d Dep osits Mis c el l an eou s R eg is t e r (A I -3 14 ). 4. Che ck of Jo urna ls Ca pital a nd Re ve n ue : Po stin gs in t he jo urna l sh ou ld be te st ch ecked b y tra c in g po sting from jo urna l vou che rs to th e prescribed exten t. Tota ls in th e journ als u nde r d ebits an d cre dits u nd er e ach d eta iled hea d sh ou ld the n b e ch ecked an d tra c ed in the summary at t he e nd . 5. Ch eck of le dg ers, Ca pital a nd Re venu e: The led ge rs sho uld be ch ecked to see tha t the gran d tot als in the jo urna ls h ave bee n co rrectly po sted in them a nd that the clo sin g en trie s ha ve be en corre ctly ma de . The ope ning bala nc es of t he m on t h i n t h e l ed ge rs s ho ul d b e v er if ie d w i t h t he c l os i ng bala nc e o f t h e p re v io us m on t h. 6. I t s h ou ld b e s ee n t ha t h ead s o f ac c ou nt s ho w n in l ed ge rs , J ou rn al s and Ac c ou nt s C ur re nt a re c o rrect a nd u pt o da t e. I t s ho ul d b e als o b e s ee n t ha t Ac c ou nt s c ur re nt are s upp ort ed b y p re scribe d sched ules an d tha t to tals o f entries in sch edu les a gree with fig ures un der re spective he ad s sh own in A c c o u n t s C u rre n t . A f t e r c h e c k o f a c coun ts cu rren t co mp ile d b y Division al Office Manual 117 accounts officers, accounts officers(Construction) and Workshop and Stores, correspo nd in g Sr/ Aud it Officers sh ou ld se nd an a dvice of au dit to Sr/ A u d it O f f ic e r, B o o k s & Bud g e t h e a d q u a rt e rs A u d it S e c t i o n , b y 2 5 t h o f each mo nth to e nab le the latte r to ve rify t he con s olidat ed Acco un t Cu rren t for entire Ra ilway compiled by FA&CAO. 7. As re gard s co nsolida t ed Acco un t Cu rren t se nt to Railway Boa rd mo nth ly, a reg iste r is ma in tain ed sepa ra tely fo r Ca pita l a nd Reve nue Accou nts Current b y hea dq ua rte rs B ooks Section of Account s O ffice for consolidating details received from several units. Postings in the re gister sh ou ld be f irst che cked with refe re nc e to Accounts Current received from va rious unit s. Correctness of totals shou ld th en b e che cked . Th erea fter, co ns o li d at e d l ed ge rs an d Ac c ou nt s Cu rre nt sh ou ld b e c he c ke d w it h re ference to this register. 8. F ai r c op ie s of c o nso li d at ed Ac c o un t s C ur re nt r e la t in g t o e nt i re R ai l wa y for th e month o f Ma rch a re se nt to th is office by FA&CAO bef ore de spatch to Railwa y Bo ard for record in g certificate " compa re d with o ffice cop y and foun d to be a true cop y " p re scribe d in para 378 of Ra ilway Aud it Ma nu al, alongwit h office copies. After comp arison of Accounts Current, the ce rtifica t e sh ou ld b e reco rd ed th erein an d retu rned to Acco un ts Of fice , re taining on e co py ea ch o f the Acco u n t s Cu rre n t f o r re co rd . Ch e ck of Ac c ou nt s C ur re nt s ho ul d b e t ak e n up s e para t ely a nd c o m pl et e d by t he due date . Se le ction fo r th is ite m is ta ke n from th e Cap it al an d Reve nue Ac c o u n t C u rre n t . 267 . Pay orders for paym ent of unpaid wages (para 386 of RAM): A l i s t of pa y o rd ers b oth fo r un pa id wa ge s a nd o t he r pa yme nts is to b e pre pared fro m Au6 registe r ma in taine d in Boo king Sect io n o f Acco un ts Office and se lection taken from this list. While a ud it in g t h ese pa y orde rs r el a t in g t o unp aid wa ge s, it sh ou ld be see n th at necessary credits existed as revealed by t he R eg is t e r( St at em e nt s ) of u np ai d w a ges a nd t ha t s uc h pa y me nt s a re promptly n ote d in the Reg ist er(sta temen t s) an d d uly a tteste d by a Gaze tted Officer or Senior Accoun tan t to avoid risk of dou ble payme nt. 2. Pa y orde rs rela tin g to oth er cate go ries sh ou ld be che cked in acco rd ance with pa ra 2 88 RAM. Th e re le van t rules co nta ined in Accou nts Code Vol.I(pa ra 31 6,1 95 9,19 60 ) sh ou ld be see n. Sele ct io n is ta ken fro m Au6 Re gisters o f un paid wa ge s an d o t he r th an un pa id wage s. 268 . Budget Grant Register and Reappropriati on Statem ents. Pa ra s 3 9 6 to 400 o f RAM. A re gister is mainta in ed in the Accounts Office(Budget Sectio n) in which a re not ed t he Bud ge t allotmen ts of the Ra ilway und er differen t gran ts an d h ea ds o f acco unts. All re app ro priation s made from t im e t o t im e d ur in g t h e y ea r are n ot e d in t hi s Re gis t e r an d r ev i s ed g ra nt i s arriv ed a t . T h e r eg i s t er s h ould b e r e vie we d, m on t hly , t o s e e t ha t e nt r ie s there in are co mp lete an d in o rd er wit h refe re nce to sa nction s of bud ge t grant s and Rea pp ro pria t ion re ceived in the section . 2. (HQ) Audit section may a lso ke ep a manu scrip t b ook to re cord note s o f all o rd ers of ap prop ria t io n a nd Re app ro priation (p ara 3 87 RAM). Reapp ro priation sta t eme nts are re ceived in th e fo rm of state men ts o f co mpa rison o f expe nd it ure with bud ge t grant e ach mon t h fo r works and Re ven ue Workin g Expe nse s Gran ts se para t ely. These sta t emen ts a re aud ited to se e: a) Th e a mou nts o f allotmen ts of t he ye ar h ave b ee n co rrectly ta ken. Principal Director of Audit, Central Railway 118 b) Th e re ap prop riatio ns a re within Gen eral Ma na ger' s p owers o f sa nction as intimate d in the bu dg et orde r a nd as pe r h is/h er po wers un der pa ra 365 -3 68 -FI c) Th e d ist ribu tio n o f the sup plemen t ary gran ts ha s be en ma de in accorda nce with the pu rp ose s for which t hey we re aske d fo r. d) Th e R e ap prop riat i on ha v e b ee n m ad e n ot l a t er t ha n 3 1s t M ar c h. 3. Pro prie t y an d freq ue ncy of re app ropriation s sho uld a lso be exa min ed. It sh ou ld b e se en whe t he r the orde rs of re -a pp ro pria tion were p asse d a s so on a s n ece ssity arose a nd was forese en o r the y were left to be sa nctio ned towa rd s the clo se of the ye ar. Freq uen t re-app ropriation s po in t t o d ef e c t i v e b ud ge t in g, w hi le f a ulty, unnecessary or in sufficient reapp ro priation s p oint to a n inad eq ua te watch o ver e xpe nditu re b y co ntro lling a uth oritie s. It sh ould be se en if this ina deq ua te wa tch is du e to def e c t i n proc e du re in t he Ac c ou nt s o r A dm in i s t ra t iv e of f i c e or t o an y ot h er ca us e . 269. Check of Inter-dominion tr ansacti ons. Aud it in g s ec t i on s a re re quired to pre-au dit inwa rd an d out wa rd sch edu les with re feren ce to co nn ecte d vo uche rs re la ting to int er-d omin ion tra nsa ctio ns with Pakistan Govern me nt before communicating acce ptance and submission t o Railway Boa rd of t hes e s c he du le s (b y R ai l wa y Ad min is t r at i o n) 2. As a t o k en of ac c e pt a nc e o f t ra ns a c t io n, t h e s c he du le s (b ef o re t he ir su bmissio n to Ra ilway Board ) sho uld b ea r au dit certificate d uly co un tersigne d by co nce rn ed Sr/ Audit O fficer. (Pr.Dire ctor of Audit No rt hern Railwa y wa tches prog re ss o f a bo ve settlemen t accou nts with Pakistan Government in Board's office). 3. Bookin g section is re sponsible for check of consolid ated advice of outwa rd sch edu le se nt to Ra ilway Bo ard. In re ga rd to inwa rd sche du le s wh ere checks are conducted by Auditing Sectio ns Booking Section has to ve rify that items intimated to Ra ilway B oa rd af t e r a c c ep t an c e ha v e a c t ua ll y bee n p re -ch ecke d in a ud it. 4. Bo oking Section has to re vie w Susp ense Re gister acco un t with Pakistan G o v e rn me n t R a ilw a y s q u a rt e rly wi t h a vie w to see ing t hat same h as b een co rrectly posted and clearance of ou tstanding ensured. ( Au B/ I I I / 3 5 d a t e d 14.4 . 77 ) 2 7 0 . R e g i s t e r s o f ( i ) I r r e g ul ar i t i e s ( i i ) S e r i o u s i r r e g ul ar i t i e s ( i i i ) Los se s a nd ( i v ) R e gi ster s of O v er p a ym e n ts for e g o ne . ( Pa r as 853 & 861 -AII & Para 48 2 of RAM). The s e re gisters main taine d in Acco un ts Offices sho uld b e reviewed by Book & Bu dge t Au dit Se ctio n a t He ad qu arters a nd in Bra nch Off ice s. Wh ile reviewing th e re gisters, re le vant files of Accounts O ffice shou ld also be reviewe d to see wh eth er (i) t he ca se co uld be con sid ered for a co mme nt in th e Aud it Re po rt (ii) ac t i on t ak en by Ad min is t r at i o n i s a de qu at e a nd (i i i) Sa f eg uards e x ist t o avoid re curre nce of su ch irre gu la ri ties. Results of review should be re c or ded i n S el ec t i on R eg is t e r a nd s u b mi t t e d t o Bra n c h O f f ic e r. 271 . Re view of Register of Major and Mi nor Deviations. The re gister ma in t ai ne d i n Ac c ou nt s O f f ic e s h ou ld b e re v i ewed a nd a r e port s en t t o Expe nd itu re Au dit (HQ rs.) sectio n a nnu ally so a s to rea ch th at se ction b y 10th of April ind ica tin g major an d mi no r de viation s notice d by Accoun ts office as well as Au dit. Office Manual 119 272 . Reconc iliati on of unpaid wages with General Books . W h i le co nducting half yearly review of audit, inst ru ctio ns contained in Chapter III A-I s ho ul d b e b or ne in m in d. 273 . General Cash book (Item VI (b) CA: MOI). Th is is a n yearly item o f aud it. In struction s g ive n in para 3 67 o f Ra ilway Au dit Ma nu al and provisio ns o f Pa ra 3 04-AI et se q o f Railway Accoun ts Cod e sh ou ld be f ol lo w ed wh i le c he c k in g d et a iled acco un ts of th e mo nth selecte d. Audit of G eneral Cash Abstra ct Book. Th i s s ho ul d b e ch ec k e d a l ong w it h Gen eral Ca sh Bo ok. Gran d to tals of the se two se ts of cash boo k sho uld be co mpared. Detailed totals given at the foot in cash journal slip s for cre ditin g an d de biting h ea d of acco un t ` c ash ' a nd p os t e d at t h e f oo t of t he jo urna l o f the month . Ge ne ra l instru ctio ns reg arding ma inte nan ce o f gen eral cash ab stract b ook a re give n in p ara 3 06 AI. 274(a ) Cashier's Cash Book (CA:VI(7)-MOI).T hi s is an y ea rl y it e m o f aud it. Pa ra 368 of Ra ilway Aud it Ma nu al an d pa ra 19 46 et. se q-AI sh ou ld be re f er r ed t o wh ile c he c k in g t he ac c o un t s . I n a dd it i o n t o c h ec k o f Ca shier's Cash Book, Cash Books of some of the pay clerks may also be ch ecke d at th e discre t ion o f Pr.Director of Au dit. I t sh ou ld b e see n tha t amou nt s re c ei v ed a nd d is b urs ed h av e b een p ro pe rl y ac c ou nt e d f o r w it h re feren c e to Cashie r' s Cash Bo ok an d pa id vo uch ers. Whe re mo ney ha s bee n tran sferre d from on e pa y Clerk to a no t he r, e ntrie s in cash b oo ks o f both pay clerks should be reconciled. Ins t r uc t i o ns c o nt a in ed in Pa ra 1 954 e t s e q o f t h e Ac c o u n t s Co d e Vo l. I ma y a l s o b e s e e n . 274 (b) Pa y Ma sters Cas h Book . (Including Pay Clerks) Instructions co ntained in Chapter XI X of AI ma y be seen. 275 . Verification of Ca sh Balance. Inst ru ctio ns co nta in ed in pa ra 36 9 o f Ra ilway Aud it Ma nua l shou ld be followed in conducting verification of Cash Balan ces. A re vie w in rega rd to han dling of cash at va rio us sta ges so as to enable personal responsibilitie s bein g fixed in the event of lo ss or embe zzle me nt ma y be do ne with re fere nce t o instructio ns co nta in ed in Par a 3 60 -R A M a nd orde rs i s s u ed b y R ai l wa y Bo ard. 276 . Rev i ew of Misc ce llaneous Advances and Deposit Registers. ( Pa ra s 610 & 32 1 AI) In revie win g th e reg isters, it sho uld be see n wh eth er the in stru ctions cont aine d in Accou nts Co de Vo l.I re b eing ob served. The outst and ing a t th e en d of th e mon t h of a cco un t selecte d for au dit sh ou ld be trace d back to th e mo nth o f orig in in a dd ition t o a ge neral re vie w. The in s t ru c t i ons c o nt a in ed i n p ar a 3 63 o f R AM s h ould als o b e b or ne in m in d. 277 . Re vi e w o f D em a n ds P ay ab l e r e g i ster s ( Pa r a 61 1 A I ). It should be se en th at the b alan c es as p er t he registe r are re con ciled mo nth ly with those a pp earing in the Ge nera l Boo ks. Wh ile reviewing th e re gister, in stru ctions con t aine d in pa ra 2 20 , 31 5, a nd 6 11 AI s ho ul d be bo rn e in mind . 278. Adjustm ents with other Government de partments: O ut w a rd and I nw ar d a c c ou nt s t o an d f ro m o t he r Ac c ou nt s o f f i c es - Pa ra 37 1 o f R AM . Re gisters of advices issued and re ceived by FA&CAO (Fo rms A.41 8 and A.42 0 & 42 9-43 0 AI) sh ou ld be reviewed eve ry ye ar to see tha t the re ha s bee n no un due de la y on p art of railwa y in effe ctin g ad justmen t s an d tha t entire b alan c e u nde r Re serve Bank su spe nse is clea re d b y end of each fin an c ia l ye ar. Su ch o f the it ems as ca nno t be che cked in de tail by Civil Principal Director of Audit, Central Railway 120 Accou nta nt Gen eral sho uld be a udite d in det ail. Ch apter IV AI may also be born e in mind. Instructio n con t aine d in 2. Reco ncilia t io n o f amo unt s boo ked un de r `Rese rve Ba nk Dep osits' Re mittance into Bank's and `Cheques and Bills’: A general review of re c onc i l ia t i on o f amo unt s b oo k ed u nd er `Re s erv e Ba nk D ep os i t ' `Remi t t an c e in t o Ba nk s ' a nd ` Ch eq ue s & Bi l ls ' s hou l d b e c on duc t e d y ea rl y wit h re f er en c e t o p ro v isi on i n p ar as 4 37 (a ) and ( b) of Ac c ou nt s Co de . Re con c iliation fo r o ne mon t h se lecte d, sh ou ld be ch ecked in det ail, with the fig ures a dvised by Re serve Ba nk. 3. Review of items ou tstan ding u nd er Susp en se Hea ds "Accoun ts with Stat e" etc. A g en eral re vie w of b alan ces und er these su spe nse h ead s sh ou ld b e con duct ed yea rly t o se e if th ere are an y old o utsta ndin gs and t hat b al an c es ha v e b ee n re c on c ile d mont hly with those sho wn in ledg er and tha t n ecessa ry a ction is b eing take n fo r t heir ea rly clea ra nce. 279 . Trans fe r Trans actions w i thin the s ame Railw ay and transfers be tw ee n Rai l w ay s. A g en eral re vie w of th ose tran sfer tran saction s sh ou ld be co ndu cted ye arly. Th e p ro vision s o f pa ra s 4 04 -AI et seq AI an d the in stru ctions given in para 37 3 of Ra ilw ay Au dit M an ua l s ho ul d be f ol l ow ed in con duct in g th e review. 280 . Rec over y of Guara nte es from st ate Gove rnm ents a nd District Boa r ds. Th e instructio ns con t ain ed in pa ra 37 6 of RAM may be see n. 281 . De bt Head Report. (Se e para s 74 8-75 3 an d Para 3 83 RAM) Deb t He ad Re po rt is compiled by Acco unt s O fficers attached to Divisions, Co ns t r uc t i o ns a nd W or k s ho ps e t c . i n re s pe c t o f D eb t H ea ds op erat e d b y them a nd se nt t o Hea dq uarte rs Books Section of FA&CAO' s Of fice , simulta neo usly e ndo rsin g a cop y the re of to con cerne d Sr/ Aud it Officers for verification. Respective audit se ction will verif y the reports with re f er en c e t o p re v io us y ea rs ' au dit e d s t at e m ent s a nd L ed ge rs m ai nt a i ned in Ac c o u n t s o f f i c e s a n d f or wa rd t h e i r re m a rks t o t h e m . 2. In au diting Deb t Hea d Rep ort rece ive d, it sh ou ld b e se en wh eth er gen eral instruct io ns issue d b y Railwa y Bo ard for compilatio n o f th e rep ort have be en compiled with . 3. A copy of th e aud ited d ebt h ead re port together with comments wh ich co uld n ot be s et t l ed at t h e un it l e v el w i l l b e f or w ar de d b y a ud it i n g s ec t i on s to Book and Bu dg et (HQ) Au dit Sect ion . Ba sed on Debt Head Rep orts re ceived from various Accounts Office r s , H ea dq ua rt e rs B oo k s Se c t io n o f Financial Adviser and Chief Account s Officer' s O ffice will prep are a co nso lid ate d De bt He ad Rep ort fo r entire ra ilway and fo rwa rd th e sa me to Ra ilway Bo ard an d Bo oks & Bud ge t He ad qua rt ers Audit Se ctio n. The la tter will ch eck the re port be aring in mind th e ob servation s ma de by oth er aud itin g sect io ns. Bo oks & Bud ge t Au dit Se ctio n will retu rn au dited copy o f De bt He ad Repo rt to FA&CAO in corpo r a t in g aud it certifica t e prescrib ed in para 1 1 of Railwa y Audit Manu al. A co py of the aud it ed d ebt Hea d Rep ort sh ould be sent to Co mptroller & Audito r G ene ral by d ue da te. 4. Afte r fin alisa tion o f the De bt Hea d Re port a sta t eme nt sho win g d eta ils of misclassification s n oticed shou ld be d ra wn up in t he fo llo win g form b y Sr/ Aud it Officers con cerne d a nd sen t to Boo k & Bud get Head qu arters se ction du ly a ccept ed by th eir Accou nts co unte rparts. Sl. No Brief Office Manual Heads of Correct head of 121 Amt. Re marks 1 pa rticular s of misclassif ica t ion a c c o u n t ( c re d ited/ Debited A/ C w h ic h s ho ul d h av e b ee n c r ed it ed o r d eb it e d Rs. 2 3 4 5 6 5. Ba s ed o n t h e r ep or t s re c ei v ed f ro m U n it s a nd t ho s e i rr eg ul ar i t ie s not i c e d w hi le v er if y i n g c on s olid at e d D eb t H ead R epo rt s, B oo k & Bud ge t HQ rs Audit Section will comp ile a stat ement of misclassificat ions and f o r w a r d i t t o FA &CAO for his/her acceptance. 6. When there are misclassifications, th e au dit ce rtificate on Debt Head Re po rts sh ou ld be qu alifie d. It sh ou ld be no ted tha t un like Ann exu re J Stat emen t o f misclassifica tion s a nd o t he r mista k es, a ppe nd ed to App ro priation Acco un ts, sta t emen t of misclassifica tion aff ecting Deb t He ad s ha s to b e prep ared by Au dit a nd remarks o f FA&CAO th ereon obta ined , as it is part of aud it obse rva tions o n Deb t Hea d Rep ort (Comp t ro lle r & Au ditor Ge nera l' s VOL. n o . 7 2 0 -RAI I / 1 / 6 / 5 6 d a t e d 2 5 . 5 . 6 0 ) . 7. An adva nce copy o f the state me nt o f misclassification s prep ared b y Aud it and f or w ar de d t o F in an c ia l a dviser and Chie f Account s Officer for accep t an ce sh ou ld b e se nt alon gwith a ud ite d cop y of Deb t he ad Rep ort to Co mptroller & Audito r G ene ra l of In dia. 282 . Capital and Revenue Accounts. (Item CA: viii (1 0) MOI & Para 374 RA M). (Chapter VIIAI) Au diting sect io ns will verify in formation furnished by Accou nts Officers at Hea dq uarte rs an d divisio ns for co mpilation Ca pital and R ev en ue Ac c ou nt s a nd i n t im a t e r es u lt s t h ereo f t o B ook a nd Bud ge t (Hea dq ua rte rs) Au dit Se ction. Fin an c ia l Adviser an d Ch ie f Acco un ts Officer wi l l c om p ile C ap i t al a nd R e v ie w A c c oun ts of the Ra ilway an d fo rward th em to Railwa y Bo ard furn ish in g simultan eou sly co pies th ereo f to Boo k & Bud ge t sectio n. In stru ctions cont aine d in para 37 4 e t seq o f railwa y Au dit Ma nu al sho uld be bo rn e in min d wh ile che ckin g th ese sta t emen ts. Irreg ularitie s no tice d sh ou ld be po in ted out to FA &CAO for rectification 2. Th e fo llowing po ints sh ould be bo rn e in min d in ch ecking the st at e me nt s : a. T he n om en c la t ur e of t he ma i n a nd s ub -h ea ds s h owi ng i n t hese sta t emen ts is tha t p rescrib ed in Ap pe nd ix IV to th e Ind ia n Railwa y Code for the accounts D e p a rt m e n t , P a r t I . b. T he f i g ur e o f out la y f o r t he y e ar u nd er e ac h o f t h e min or h ead s un de r De velop me nt Fu nd and Op en L ine Wo rks (Reve nue ) agree with the n et fig ures ap pe arin g ag ainst con cerne d ite ms in re le van t sche du le s sent with Re venu e Acco un t Curre nt fo r March o f t he ye ar. It sho uld be e nsured t hat diffe re nce s , if an y, d ue to rectification thro ugh Capital and Revenue Accoun ts in terms of para 807 AI, are ex p l aine d s ui t a bl y t hr ou gh f oo t no t es i n t he s t at e me nt s . c . It shou ld b e see n t hat eve n tho ugh th e figures Cre dits in respe ct o f Deve lo pmen t Fun d (i & II) are sh own se pa ra tely in the sched ule to th e Acco unt Cu rren t, the y are no t sho wn as a se para t e item in the St a t e m e n t N o . X X. ( Suc h c re d i t s sh ou ld be merg ed with the exp en diture re lating to th e ma in a nd sub -h ea ds, und er t he min or he ad s) Principal Director of Audit, Central Railway 122 d. At t i m es , c e rt a in it e m s o f expe nd it ure bo oked un der Deve lo pmen t Fun d an d Op en L ine Works (Re venu e) do n ot fa ll un de r an y of the min or sub-he ad s u nd er va riou s minor heads of account. In such case s, t he amo unt sho uld be in c lu de d un der s uc h s ub -h ea ds in which the y cou ld be merge d base d on de scription o f items g ive n b y un its an d a suitab le foo t no te g iven in the sche dule conce rn ed . 3. After finalisation of the poin ts raised by audit, FA&CAO will arra nge to get th e a ccou nts printe d an d fu rn ish prin ted cop ie s of Cap it al & Reve nue Accou nts to a ud it . Ad van c e co pies of capita l & re venu e Acco unts tog eth er with Aud it ce rtificate prescrib ed in para II o f RAM vid e Pa ra 38 7 Railwa y Aud it M an ua l s ho ul d in v ar ia bl y b e s en t t o C AG a s s oo n as t he ir aud i t i s co mplete d. Whe n a p rin ted co py o f the a ccou nts is re ceived , it sh ou ld also b e sen t to Co mptroller & Audito r G ene ral of In dia (CAG ' s le tter no 2611-RAII/4-I I/61 dated 19. 7.61) 283. Financ e Accounts: Para 380 Railway Audit Ma nual (CA; VIII (8 )MO I). The s e a re re ce ived from th e Acco unt s Office, p re pared a ccording to provisio ns o f pa ra s 73 0 to 746 AI. Th ese acco unt s shou ld b e che cked in detail from the Capital & Revenue Accounts for March for the year co nce rn ed an d th e Fina nce Acco unt s of th e p re vious ye ar fo r p urpo ses o f ch eck of cumulative figure s to end of t he y ea r s ho w n i n t he v a riou s sc hedules. Instru ctions contained in CAG's letter no. 2621-RA/II/4-ii/61 dated 19.7.61 are also applicable to the ch eck of Finance Accounts. After t he ch ec k i s ov e r a ud it c er t if ica t e ( vide para 747 AI) sho uld be re corded on Sche du le E an d an a ud ite d co py sho uld be sent to Comptroller & Au ditor Gen eral of India . 284 . Control of Expenditure para 415-4 17 RAM. W he n t h e a ud it o f Appropriation Accounts and Annexures is over, a report on t he system of co ntro l over e x pe nd itu re sh ould be p re pa re d, brin ging o ut imp ortan t case s of de f ec t i v e c on t ro l ove r e xp en di t ure n on-ob servan ce de via t io n from existin g rules ord ers, d efe ctive prep aration of fina ncial re vie ws and defe c tive ma in ten ance o f Acco un ts re giste rs a nd an y spe cial fe ature s or impo rt ant e v en ts wh ich ha d mate rial repe rcu ssio ns o n the bu dg et an d reappro priations for the year. (DDRA's DO nO.945-RR7-i/59 dated 18.6 . 19 60 ) 285 . Statem ent showing transfers without financial adjustments: T h e Un it Ac c o u n t s O f f ic e rs w i l l co mp ile t h i s st a t e m e n t a n d se n d t o F A&CAO furnishing co pies the re of simu lt ane ou sl y to respective Sr / A u d it O f f i c e r f o r ve r if i c a t io n . Sr/ Aud it O f f ic e rs, a f t e r verification of the st atement, will advise re sults to (HQ) Au dit Section . ( H Q ) Au d i t S e c t i o n w i ll a u d it t h e st ate me nt comp iled by FA&CAO for ent ire Railway ba sed o n ad vice s re ceived from unit Audit Off ices. Copie s of a udite d sta t emen t will be furnishe d to C&AG of In dia. In ch ecking th is state me nt, it sh ou ld b e seen that in resp ect of Int er-Ra ilway adju stments, acceptance of Foreign Ra ilw ay s t o i nc l u s io n of a mo un t s p er c on t ra in t he s t a t emen t s re la t i ng t o t hem h av e b ee n ob t ai ne d a nd k e pt o n r ec or d. G en er al ly , c o pies o f st ate me nts re lating to o t he r Railways will also b e re ceived in Accoun ts Office if an y ite m of pe r co ntra a djust me nt with Central Railway is included there in . Such st ateme nts sho uld a lso be co nsu lte d to se e th at inte rRa ilway a djustme nts sho wn in th e sta t eme nts p ertaining to Ce ntral Railwa y have be en corre c tly re fle c ted by o t he r Ra ilways. Office Manual 123 2. I t em s o f a dj us t m en t s a f f ec t e d w it h in t h e ra ilw ay (I n t r a- Ra i lwa y) s h ou ld be ve rified with re fere nce to au dited de tails re ceived fro m vario us u nits and authority for such adjustments. It sho uld also b e seen t hat in respe c t of a djustmen t relatin g to Lo an s and ad van ces b y Cen t ra l G ove rn me nt and India n Ra ilwa y Dep osits det ails of a mo un t s p ertaining to ea ch of min or hea ds/classified he ads th ere u nd er are fu rn ish ed sepa ra tely a nd n ot in one lu mp . 3. Wh ile forwarding aud ited co pi es o f state ment s, co pies o f co rre spon de nce be tween Railway Board an d th e Ra ilway Administra tion in su pp ort o f ad ju s t m en t s re f er r ed t o in t he s t a t emen t s s ho ul d be s en t . (CAG (R) le tter no.2719-RAII (L ) i-7/62 dated 29.8. 62) Copies of general orders issue d by Ra ilway Boa rd ap plicab le to all railwa ys an d forwarded throu gh the C&AG (Railways) ne ed n ot howe ver be sen t. 286 . Statement showing calcul ation of Dividend payable to G eneral Re ve nue s. Figu re s sho wn ag ainst items Tota l Ca pital at Ch arge and Ca pital outla y incurred on n ew line s to en d of previou s yea r un de r Dedu ct entry will be che cked with tho se ap pe arin g in aud ited co py o f stat emen t for previou s ye ar. Ou tla y on Ne w L ines wh ich h ave be en o pe ned for traffic s h o u ld n o t b e t a k e n in t o a cco u n t t i l l t he e n d o f f i f t h ye a r o f t h e i r o p e n i ng of traffic. Th e amo un t of tran sfers wit hou t fina ncial ad ju stmen t s du ring the ye ar sh ou ld b e ve rified with re feren ce to a ud it ed state ment sen t to Co m pt r ol l er & Aud it or G ene r al o f I nd ia . T he f i g ur es of o ve r c a pit al i s at i on sh ou ld be verifie d with th ose a dvised by Railwa y Bo ard in th eir le tter no.F(x)/III-61 Cg.i dated 30.10. 63 and a ccepted by CAG. The correctness of n et cap it al a t ch arge to en d of previou s ye ar sh ou ld th en b e ve rified . Th e fig ures of capita l o utlay in cu rre d from 1. 4.6 4 to end of p re v ious ye ar sh ou ld be verif ie d with au dite d ne w const ru ctio ns a nd Ca pital ou tlay on Ne w L i nes ( Ap pe ar in g un de r d ed uc t en t ry ) s ho ul d b e v e rif i ed w i t h r ef er enc e to t he sche dule s ap pe nde d to the Cap it al Acco un ts Curren t fo r Ma rch o f the year. Th erea fter the correctne ss of t he fig ures o f the ne t ca pital outla y incu rred during th e yea r (an d ha lf th ereo f) will be ve rified . It sh ou ld be seen tha t th e rate of in terest advise d b y Railwa y Bo ard fo r calculation of dividen d pa yab le o n th e elemen t of ove rca pitalisation ha s-b een co rrectly adopted. In terms of Ra ilway Bo ard's lett er no.91-ACI/6/2 dated 28.4 . 94 , in re spect o f the ca pital in ve ste d on new lin es (exclud in g 28 line s taken up on or afte r 1 . 4.1 95 5 on oth e r finan cial consid eration s ), d ivid end paya ble is to b e calcu la t ed at th e ave ra ge bo rrowing ra te fo r e ach ye ar bu t defe rre d du ring t he pe rio d of con s tru c tion a nd th e first five yea rs a fter ope ning of th e lines f or tra ffic. The d efe rred lia bilt y is to be p aid o ut o f the su rpluses o f th e lines a fter p aymen t of cu rre nt d ivide nd . The amou nt o f unliqu id ate d de ferre d divide nd lia bility on n ew lin es is t o be c lo s ed a f t er a period o f 20 years from the dat e of th eir ope ning exting uishing an y liab ility not liqu idate d within tha t pe riod . 2. The ou tla y du rin g the current year sho uld b e ve rified with re feren ce to the sch edu les to the Ma rch Ca pital Account Current. The deduct entrie s for the items (i) Resident ia l Bu ildin gs (ii) ou t lay on New Lines oth er t han those taken up on other than financial considerations and (iii) Outlay on P&T lin e wires are ve rified with refe re nce to a ud it ed sta t emen t of previou s ye ar a s also the comp iled d ata for t he current year. Thereafter the net ca pital outlay in curred during the year (a n d h a l f t h e re o f ) wi ll b e ve ri f ie d . 3. Acco rd in g to Ra ilway Co nve ntion Committee 1 991 , a ccep t ed b y the Gove rn me nt, the ra tes of d ivide nd pa yab le to Gen eral Re ve nu es is 7 % on Principal Director of Audit, Central Railway 124 the en tire cap ital inve sted o n Ra ilwa ys from general revenues irre spective of th e yea r o f investme nt. A conce ssio na l d ivid end of 3 . 5% is p ayab le on t he c a pit al c os t o f re s id en t ia l b ui l di ng s ( R B’ s le t t er no . 94 A C I 6. 2 93- 94 dat e d 2 8. 0 4. 1 99 4) . 4. T he c or re c t ne s s of t h e amo unt of de f er r ed d i v id en d r epa y ab le in r es pe c t of a ny new line which ha s comple ted the morat oriu m pe riod sh ou ld be ve rified wit h refe re nce to th e sta t emen t of de ferre d Divid en d d escrib ed in the fo llo win g Pa ra grap h. The tota l a mo un t of d ivide nd for the ye ar propo sed to b e p aid will th en be ve rified . A re po rt on n ew se rvices no t co nte mplate d in th e bud ge t includ ing exp en diture on ind ividu al su rve y wo rks et c.is requ ire d to be se nt to ADAI (Railways) b y 3 1st Augu st each ye ar. Det aile d gu id eline s to trea t a wo rk/ca se as a ne w se rvice no t co nte mplate d in t he bu dg et ha ve be en given in O M No. F7(IS)3(RA)/82 d a t e d 1 3 . 4 . 8 2 . ( CA G ' s n o . 84 6 - R AI I I / R R / 8 1 o f 2 1 . 8 . 8 2 ) . 287. Statement of De fe rred Dividend. Th is will be prep ared acco rd in g to in stru ctions con t aine d in Railway B o a rd ' s l e t t e r n o . 5 7 - AC/ i / 7 d a t e d 8.5. 195 7, an e x tract o f which is give n be low. 2. In te rms o f p ara 1 9 of the re po rt of Ra i lw ay C onve nt i o n C o mmi t t ee 195 4, d ivide nd on ca pital-at-cha rg e on new line sh ou ld b e co mp ute d at a le sser rate viz. ave ra ge bo rro win g rate ch arge d to Commercial De pa rt m e nt s . D i v id en d s o c a l c ulat e d f o r t h e p er io d o f C on s t ru c t io n o f t he line s a nd u pt o e nd o f f i f t h y e ar o f t heir o pe ni ng f o r t r af f i c , is t o be defe rre d du ring tha t pe riod . Fro m th e sixth ye ar on wa rd s, curre nt d ivid end will be pa id . In ad dition the de ferred divid en d is to b e p aid on the ne t in come if t hese lin es le ave a su rp lus after payment of cur re nt div id en d. A st at e me nt s ho w in g C ap it a l O ut l ay i n re s pe c t o f ea c h ne w l i ne a nd d ef e rred div id en d e t c . s ho ul d b e s u bmi t t ed s an en c lo s ure t o t he s t at e m en t . 3. Accord in g to Railway Conve ntion Co mmitte e Rep ort 1 98 0 an d 19 85 , and ac c ep t ed b y t he G ov er nm e nt, in respe ct of th e cap ita l inve sted on n ew line s e xclu ding t he no tifie d lin es, take n up o n or a fte r 1.4 . 19 55 o n oth er than fina ncial co nside ra t io ns the dividen d paya ble is to b e ca lcu late d a t the ave rage b orro win g ra te fo r ea ch year bu t d efe rred d uring th e pe riod o f co nstruct ion and the first five years afte r ope ning o f lin es for traff ic. The defe rre d lia bility is to b e pa id out o f t he fu ture surplu s o f the lines a fter payme nt of cu rre nt divide nd . The a ccou nt o f un liqu idate d d efe rred divid en d liab ility o n new lin es is to be closed a fter a period of 2 0 ye ars from the date of t heir opening, extinguishing any liability not liquidated wit h in t h a t p e rio d . 4. Th e d efe rre d d ivide nd sta t emen t which is prep ared a lo ng with the div id en d st at e me nt s ho ul d be c he c k ed o n t he l in es me nt i o ned a bo v e. T he st ate me nt sho win g th e cap ita l o utlay in respe ct of ea ch ne w line and defe rre d divide nd e t c. sho uld b e su bmitted as an en clo sure to the Divid end Stat emen t. 288 . Statement of Subsi dy fr om general Re venues. Statement of subsid y to be claimed fro m Ge nera l Reve nue s is prep ared a long with the d ivid end st at e me nt . C ap i t al in v es t e d i n t he f ol lo win g case qua lifies fo r su bsidy from the Ge ne ra l Reve nu es to the e xten t o f the d ivide nd ca lcu la t ed a t the rate s sp ecified for them. a. St ra t eg ic l i ne s b. New line s take n u p o n or aft er 1.4 . 55 on o t he r th an fina ncial con s iderat io ns. Office Manual 125 c . U nr em u nera t iv e Bran c h L in es d. Ferrie s an d Welfa re bu ildin gs e. 5 0% of the ca pita l inve sted on a ll wo rks in th e cu rren t yea r a nd in th e two previou s ye ars e xcludin g capita l inve sted in strate gic lines. Th i s s t at e me nt i s a ls o s en t as a n e nc l osu re t o d i vid end s t at emen t . 289 . C o n t i n g e n c y F u n d Ex h i b i ti o n o f tr a n s a c ti o n s i n the c om bi n e d Fi na nce & Revenue Accounts. B o o ks s e c t i o n a t H Q r s . o f F A& C AO ' s o f f ic e will co mp ile th e state ment in th e form p re scribe d an d fo rward it to Railwa y Boa rd f u rn is h in g c op ie s t he r eof t o Aud i t f o r v er if i c at io n. Boo k s ( H Q ) Au dit Section will verify the statement with refere nce to audited copy of the st at e me nt f o r p re v io us y e ar, s anct io ns r ec ei v e d f r om R ai lw a y Boa rd sh owing th e a moun ts a llot t ed from Con t inge ncy Fu nd o f In dia d uring the ye ar, Acco unt s Cu rren t for Ma rch and the reg isters ma in tain ed in Accoun ts office. It should be seen that su itable foot note in re gard to advance taken fro m Co nting en cy Fu nd of In dia a nd re coup ed to fu nd du ring the same ye ar is giv en i n t h e f un d ac c o un t s i n t e rms of R ai l wa y B oa rd ' s l et t er n o. 7 2AC/I/7/ 4 dated 6/73. Result of verifica tion will be intimated to FA&CAO. A co py o f t he a ud it ed s t a t eme nt w il l be s ent t o t he C AG ( R ). ( R ai l wa y Boa r d' s le tter no. 55ACi./7 /5 dt .17 . 3.5 6 55 ACI/7/5 dat ed 27 -5-56 ACi/7 / 4da ted 16/8 . 61 an d CAG' s le tte r n o.RAI I/T4-2/5 5 d ate d Nil) 290 . Ne w Services not contemplated in the Budget (See para 2 57 o f Ra ilw a y A u d it Ma n u a l ). I n o rd e r t h a t cases of Ne w Serv ice/New I nstrument of Service co uld be a vo ided a s fa r as possib le , CAG h as decide d tha t wh ere AG has a dou bt a s t o whe t he r a p ar t i c ular s an ct io n t o e x pe nd it u re attracts t he provisio ns of Ne w Serv ice/New Instrument of Service, he sh ou ld immed iate ly (prio r t o au tho risat io n o f payme nt) take up t he ma tter demi-officially with the Secretary /Joint Secretary of the Administra tive Ministry con c erne d with a cop y to th e Jo in t Se cretary to the Min istry o f Fin ance (Bud ge t ) for re con s id eration . Co py of th e re feren c e mad e by the AG sh ou ld a lso b e e nd orsed to the CAG alo ngwith a brie f h ist ory of the ca se. Th e u nde rlying in ten t ion is th at if th e a dmin istra tive Ministry/Min istry of Finan ce do es no t agree with the views of the AG the ma t t e r ca n b e d is c u s s e d b y t h e m wi t h the CAG office to re solve the dif f er en c e o f o pi ni on qu ic k l y w i t ho ut u nd ul y de l ay i ng t he exp en di t ure. I f i t is fin ally he ld that th e case attra ct s th e p rovisio ns of Ne w Service s /New I ns t r um en t s of Ser v i c e, a c t io n c o uld b e i ni t i at e d b y t he D ep ar t m en t s f or obta ining su pp le ment ary g ra nt o r an ad va nce fro m th e Con t inge ncy fu nd o f I ndia . T hi s pro ce du re i s ap plica bl e o nl y t o c as e s of e x pe nd it u re sa nctio ned by t he Ce ntral Go vernmen t. (CAG' s lette r no. 191 2-REP/274 .65 dated 24.9.68 received under ADAI' s letter no.4626-RR/6-1/68 dated 28.1 0.6 8) 2. A rep ort on new se rvices no t con t empla t ed in the b ud ge t in clu ding ex pe nd it u re o n in div id ua l s ur v ey wo r k s et c . i s r eq ui re d t o be s en t t o A DA I (Rlys.) by 3 1st Au gust ea ch year. De tailed g uide line s to trea t a work/case as a n ew se rvice n ot co nte mp lated in th e b udg et h ave be en given in OM no .F7 (15) B 9RA)/82 dated 13.4.82. (CAG ' s n o . 8 4 6 -RA I I I / R R / 8 1 o f 2 1 . 8 . 8 2 ) 3. On the Ra ilway side , `au t ho rizatio ns' t o execu t ive officers to in cur expe nd itu re o n works a re issued by compe t en t au tho rities and co pies o f su ch `a uth oriza tions' are e nd orsed to th e respective Pr.Directors of Au dit. O n r ec ei p t o f s uc h ` au t ho ris at i o n' t he c o nc e rn ed a ud it i n g s ec t i on s , ma y , in Principal Director of Audit, Central Railway 126 add itio n t o th e wo rks conta ined in the Works, Mach in ery a nd ro lling Sto ck Programme of the Ra ilway for t he yea r, review su ch works as desire d in CAG' s let t er men t ione d ab ove to see if exp end iture the re on d oes no t attract the provision of New Service / New Instrument of Service and take up the ma tter with the Ad ministrat ion, if n e c e s s a ry, w i t h t h e le a s t p o s s ib le delay. (CAG (R)'s letter no.704-RR/6- 1/68 dated nil and CAG 's letter n o . 7 5 1 -R A I I I - RR/ 6 -2 / 8 1 d a t e d 2 6 . 7 . 8 2 (AUB/ I I -3 7 / 5 9 1 4 d a t e d 4 . 8 . 8 2 ). 291 . Cle ara nc e of ineffic i ent ba lance s unde r Suspens e He ads . T h e progre ss made in the cle aran ce of in efficient ba la nce s u nde r susp ense He ads Misc. Advance Revenue, Misc. Ad va nce Ca pital, Pu rch ase s and Sales sh ou ld be wa tche d, if po sitio n wa rran ts, a co mme nt o n th e sta t emen t of o utsta ndin g b alance s un de r su spe nse (Pa rt II de tailed Ap propriation Ac c ou nt s ) s ho ul d b e c o ns i de re d f o r C h ap t er I o f t he R ai lw a y Au dit Re port )(CAG(R)'s le tter no.493-RAI/12- 8/6 6 da ted 2 3.2 .67 , no . 363 7RA I / 1 2 -8 / 6 6 d a t e d 1 5 . 1 0 . 7 1 a n d n o. 566-RAI/ 13-8/ 66 dated 17.2.73). 292 . R e vi e w o f Pap e r S ec ur i ti e s. The cu st ody of pa pe r secu rities given by t he C on t r ac t o rs et c . h as be en d ec entralised vide the Account O ffice POO no.6 of 1964. Accord in gly sect ions/divisions have to review the paper se curities held in custody by the Accounts Officer (B ooking) annually. Wh ile checking this item, instructions cont ained in chapter XVIII of the Accounts Code Vol. I m ay b e b or ne in m in d. 293 . Check of Passes/PTO s issued by FA&CAO's offi ce (booking sec ti on). The Books (HQ) Audit Section has to ch eck a nn ually th e pa sse s and PTOs on Ho me Line issue d by th e Bo oking se ctio n of th e FA&CAO' s office, Mumb ai. One month should be sele cted for detailed check. 294 . Material for Ce ntral Government Finance Accounts. As p er in stru ctions con t aine d in Pa ra 7 28 AI a stat emen t sh owing summary o f wo rkin g exp en s es inte r a lia by reve nu e a bstracts is req uire d to be in corpo ra t ed in th e Annu al Cap ita l a nd re ve nu e Acco un ts for submission to Ra ilway Boa rd . The amou nt of working expe nse s by reve nu e a bstracts is also re qu ire d for in corpo ra t ion in th e Cen t ra l g ove rn ment s fin ance Accou nts with ef fect f ro m 19 67 -6 8 a nd a s such a sta t emen t sh owing the amou nt sepa ra tely und er e ach reve nue a bstract is prep ared in the profo rma as prescribe d in t he Railway Boa rd' s le tter no. 67-ACI/9 /2 da ted 24.7 . 68 an d su bmitted to th e Railway Bo ard b y 31 st Au gu st ea ch yea r. Two co pies o f the st ate me nt will be sent to t h e Pr. Di r e c t o r o f a u d i t f o r s c ru t in y . Th es e s t at e me nt s a re t o b e s c r ut i ni s e d by t he B oo k in g H Q . A ud it S ec t i on and th e au dited co py o f t he stat emen t is to b e sen t to CAG b y th e 1 5th September each year. (CAG 's le tter n o . 3 0 7 9 -RA I / 2 3 / 1 8 / 5 7 d a t e d (1 2 . 8 . 6 8 ) 295 . Audi t Certificate in respect of accounts for the year ending with the Ma rch accounts (pa ra 38 8 o f RAM) Afte r th e ch eck o f acco un ts for Ma rch ea c h y ea r a ud it in g Se c t i on s/ Di v i s io ns s h ou ld s en d t o Boo k in g H Q b y first wee k of Sep t embe r a ud it ce rt ificat e as prescrib ed in Pa ra 8 o f Railwa y Aud it Ma nu al, r eg ar di ng c or re c t ne s s of t he ac c ou nt s p re pa re d b y t he Adm i nis t r at i on et c . a lo ng wi t h t he t w o l is t s(i ) l i s t A s h owi ng it e m s in arre ars affe ctin g a ccuracy o f a cco un ts an d (ii) list B showing items in arre ars bu t not affe ctin g Ma rch acco un ts. The Bo oking HQ se ctio n will send co ns o li d at e d a ud it c er t i f ic a t e t o C AG (Rl y s ) by 30 t h of Sep t emb er b as ed on t he certifica t es rece ive d from Section s /Divisio ns. Office Manual 127 296 . Exhibition in accounts of expendi ture betw een Consolidated Fund of India and the Public Accounts re g a r d i n g e x p e n d i tur e fr o m v a r i o us rese rve s. Sche du le of Reve nue exp end iture, mon t hly Reven ue accou nts in th e form prescrib ed by Railwa y Boa rd is to be che cked by MB / BSL / BP L / N G P / J BP / J HS/ PA a n d SUR d i vi sio n s, Co n st ru ct i o n HQ a nd expe nd itu re HQ sect io n a nd a dvice o f verification to b e se nt to Bo oking HQ se ction. This check is to be exer cised in respect of t he accounts for Ma rc h only and advice of verif ication remarks to be furnishe d afte r closu re of March Acco un ts alon gwit h the ad vice of che ck of Cap ital an d Reve nue Account current for March. The Bookin g HQ section will t ake furt her action ba sed on the ad vice from th e d ivision s/section s as pe r e x tan t orders. (No.SAB/ 126-A dated 28.3.58 and no. AUB/III/ 21 dated 18.7.64) 297 . Che ck of Re cov eries and Pay m ents rel ating to Ra ilwa y employ ees Group I nsurance Scheme. Ba sed o n th e a dvan ce sch edu le sho win g to tal re coveries a nd p aymen ts du rin g th e mon t h fu rn ished by va riou s Divisions/Workshops/other unit s, the FA&CAO (Boo ks) arra nge p aymen t o f the ne t amo unt to the PAO . Min istry o f Fina nce (De pa rtme nt o f Expe nd itu re ). Division al Sr/ Audit Officers/Au dit O fficers sh ould sen d the co nso lid ate d fig ures to Bo oking Se ction by 15 th Ap ril e very ye ar. The Boo k in g Se ctio n will check th e fin al payme nt made to the Ministry o f f in an c e du ly a gr ee in g t he c or re s po nd in g amo un t s in t he G en er al Boo k s . (Autho rity: PO O No.1 094 dat ed 1 9.4 .19 84 a nd Au/COR/1 3(4) vol.IX da ted 3.7. 84). 298 . Consent Audit and Audit of statutory and Autonomous Bodies un d e r ta k e n by t he I n d i a n a u di t a n d A c c o u n ts D e p a r tm e n t. i . C o n s e n t Aud it : A list furnishin g certain p articu lars in resp ect of Co nsen t Au dit p e r f o rme d b y t h e I A& AD i s t o b e f u rnish ed t o t he C AG of I nd ia b ef o re t he end o f M ar c h e v ery y ea r (A ut h or it y C AG ' s e nd or s emen t n o. A 8- 17 -5 2 o f 13.8 . 19 53 ). 2. Se pa ra te lists con t ain in g au dits un de rta ken u nd er se ction 1 4, 1 9 an d 20 of CAG' s (DPC) Act 19 71 a re to be se nt to CAG by end o f April ea ch ye ar by C O R s ec t i on . F o r t h is p ur po se , s ec t i on s / di v i s io ns s h ould s e nd t he ir re t ur ns b y t he 1 s t w ee k of Ap ri l ea c h y ea r. Ne c es s a ry e nt r y i n C al en da r o f Re turns sh ou ld be ma de . (CAG ' s le tter no . 80 1-TAI/4 7-74 dt. 2 3.9 .74 and Au/CO R/Co n/1 9 d ate d 4 . 12. 74; CAG' s lette r no. 31 37-4 9/RAI/8 -3 /74 da ted 6.12 .74 ) 3. Exact scop e o f lists o f Audits to be includ ed in t hese rep orts to CAG has b ee n e x plaine d i n C A G ' s l et t e r n o. 3 04 9- Ad mn 1/ 4 60 -5 8 o f 8-58 re ceived under CAG(R)'s endorsement no. 2509-RAI/A-8-13/58 of 13.1 2.1 95 8. 299 . G u ar a nt ee g i v en b y the C en t r al G ov er nm e nt (S ta te m ent of shar e Ca p i ta l d e b e ntu r e s a n d l o a ns to Br a n c h l i n e Co mp a n i e s ).T h is o f f i c e h a s to fu rn ish to C&AG of In dia p articulars rega rding Gua ra nte es g ive n b y Ce ntral Gove rn men t u nd er Article 29 2 of con s titution in resp ect of L oan s ra ise d by Private pa rtie s e t c. for prep aratio n of a con solid ate d d ra ft pa ra for in clusion in Centra l Civil Audit Report. 2. Th is rep ort h as t o b e go t ve rified b y FA&CAO in resp ect of each f in an c ia l y e ar and t o b e s en t t o C AG lat est by 31st August of each year. (CAG (R ) ' s le t t e r n o R AI I / 4 - 4 o f 1 0 . 7 . 5 7 ) Principal Director of Audit, Central Railway 128 3. CAG has further directed that in such cases of guarantee given by Ce ntral Gove rn ment, a greeme nts exe cute d wit h p ri nc i pa l d ebt o r a s w el l a s De ed s o f gua rant ee e x ecute d with credito r are to be scrutinise d in au dit. (CAG 's Secret le tter no. 184-TAI/226/61 (ii) of 19.1.1965) 300 . Revi ew of expe nditure from the Secre t s erv ice Fund (1) Re sponsibility of Audit in the matt er of au dit o f exp en diture fro m Se cre t Fu nd is given in Para 7(viii) of the RAM. A gist of in st ru ctions which have t o b e b or ne in m in d w hi l e v e rif y i ng / scru t inisin g th e ce rt ificat e is given belo w: a. Ra i lw a y Bo ard' s le t t er n o. 59 / Se c / 15 6/ 1 da t ed 2 . 2. 6 0 s t at e s t h at w hi le amou nts are to b e drawn in a lump su m, u nsp en t b alan c e sho uld be cre dited an d t aken in re ductio n o f exp en diture be fore close o f the f in an c ia l y ear. b. Th e Railwa y Bo ard' s le tter no. 60 Security/15 7/4 d ate d 10.8 . 60 prescrib es the format of the Certificate in which it is to be f urnished by Ra ilway Administration to Railway Board. c. Ac c or di ng t o it e m 3 7( 4) o f A nn ex ur e A i n t he A ppe nd ix 8 of t h e Financial Rule s, Vo l.II the cert ificate is to be furnished nomina t ed office r. I t would be seen from Min istry o f fina nce' s F1 7(i)-E.II (A )/ 56 dated 22. 3.60,(Item 6 4) t ha t t h e Sen i or D ep ut y Ma na ge r, Mu mb ai is the con t ro lling officer for Central Railway. G en er al by the OM NO. G en er al d. Ministry of Finan ce lette r n o.F 2 (1 21) B/5 4 d ate d 1. 6.56 an d Railwa y Boa rd ' s le t t er n o. 91 1 S ec ur i t y -6 5/ 6 da ted 24 /.1.5 8 rece ive d u nde r CAG' s end orseme nt no .51 78 -RR/10 -1-67 d ate d 2 3.1 2.6 7 stat e th at prior app r ov al o f C A G w h en an y r ea pp ro pr ia t i on w ou ld i nc r ea s e t he p ro v isi on for Se cre t Se rvice e x pe nd itu re by 2 5 p ercen t or more, sh ou ld be take n. e. Ra ilway Boa rd' s lette r no .61 / Sec/ 156 /3 dat ed 23 .7.6 3 sta t es that the fun ds are to b e drawn on prop er occa sio ns inste ad of b eing with drawn in one lumpsum at the commencement of the year. f . As per Railway Board's letter no.6 7/Sec/Sp l./156 dated 4.10.67, s epa ra t e pro v isi on f o r S ec r et Se rv i c e F un ds is t o b e ma de u nd er De mand No.12 Security K. 115 (S pl.Expenses). 301 . Review of Ci vil Audi t Reports . Boo k i ng H Q Au dit S ec t i on r ec e i ve s va rio us Audit Re po rts o t he r tha n Railway Audit Re po rts viz.P&T Co mme rcial, Civil et c. Th ese Au dit Re po rts sho uld be reviewe d b y G a z e t t e d O f f ic e rs i n HQ rs. o f f i ce a n d impo rtant inte re sting ca se s h aving bea rin g o n Railwa y wo rking may be circulate d to all Bra nch Officers and Sec t i o n O f f ic e r/ A s s is t a n t A u d it O f f i c e r s of this office. The Au dit Reports will finally be kept in the custody o f Bo oking HQ Au dit Se ction. 302 . Appropriation Audit Appropriati on Ac counts. S e e C h a p t e r I V o f f in an c ia l C ode V ol . I a nd C ha pt e r XX Ap pe ndix 5 o f R AM . T he App ro pr i at i on , Ac c ou nt s , a nn ex u re s and c on ne c t ed s t at e me nt s a re prepa red by FA&CAO soo n a fter th e accou nts for March are clo sed . As and when the y are p re pa re d an d su bmitted to th e Railway Bo ard, t wo co pies a re sen t to t his office f or aud it an d tran smission of o ne co py to CA G . T h es e s ho ul d b e a ud it e d a s exp ed it i ou s l y as p os s i ble i n t hi s o f f ic e adh ering to t he prog ra mme fixed by Ra ilway Boa rd a nd C&AG of Ind ia . A mo nth ly re po rt sho win g progre ss in ch eck an d su bmissio n of ap propriation accou nts sh ou ld b e se nt t o CAG from Octo be r on wa rd s. It sho uld b e seen Office Manual 129 wh ile au dit in g t h at a c c ou nt s h av e b ee n p re pa re d i n p ro pe r f o rm ( c ha pt e r I V of F-I) a nd tha t rules o n th e su bject an d a lso orde rs issue d b y Railwa y Boa rd an d C AG f ro m t i m e t o t i me ha v e be en f ol l ow ed . D et a ile d i ns t r uc t i on s in re gard t o che ck of ap prop riat io n acco un ts are give n in Cha pte r XX App en di x V o f t he R ai l wa y Au dit M an ua l. 2. Figures in App ro pria t ion Accou nts sh ould be ca re fully checke d. Amoun ts of orig in al g rants sho uld be ch ecked from the Book of de mand s fo r Gran ts and B ud ge t r eg is t e r . A mo un t o f F in al g ra nt s ho ul d b e c hec k e d f r om Gen eral Ma na ge r' s re ap prop riat io n stat emen ts a nd Bud ge t Grant Re gister wh ich h ave a lre ady b een ch ecke d. Ac tu al expe nd itu re shou ld be ch ecked with refe rence t o Wo rks a nd Reve nu e allocat io n registe rs, cap ital and re venu e Acco un ts, Pink Book Re gister an d S ch ed ul es a c c om pa ny i ng Ma rc h Ac c o u n t s C u rre n t . 3. Expla natio ns are given in acco un ts fo r large va ria t io ns be tween o rig in al grant a nd fina l gran t and betwe en fina l g ra nt an d actu al e xpe nditu re . Explan ation s for variation s bet we en or ig in al gran t an d fina l g rant a re given only if overa ll diffe re nce b etwe en t ota l o rigina l grant and final g ra nt is in ex ces s of limit s la id d own in Cha pt e r I V FI , cau ses of varia t io ns in clu ding co m pe ns at i n g v a riat io ns b ei ng e x plaine d f o r t he g ra nt a s a w ho le at t he end of the app ropriation Acco unt of th at g ra nt. 4. The correctne ss of these exp la na t ions sh ou ld be verifie d a fter a chose st udy o f th e a ccoun ts off ice file re lating to p re pa ra t ion of Budg et and Re v is e d e st im at es an d ot h er Re v i ew f il e s c o nt a in in g e xp l ana t i on s o f f er ed by De part mental Officers. Instructions cont ained in Ch apt er XX of the Ra ilw ay A ud it M an ua l s h ould b e f o llo we d i n s c r ut i ni s i ng t hes e explan atio ns. Cases of misclassifica tion, de fective bu dge ting, irreg ular re app ropriation , coming t o no tice du rin g au dit sh ould b e p ointe d to FA&CAO f or in clu sio n of th ese ite ms in rele vant Ann exures to App ro pr i at i on Ac c ou nt s . 5. Explan ation s fo r varia t ion in resp ect of wo rks costing b elow Rs. 50, 000 etc. fu rn ished by DRMS/DAOs a nd he ad s of De pa rtme nts resp ectively to FA &CAO f or p re pa ra t i on of F in al a pp ro pr ia t i on Ac c o unt s/ An ne x ur e s h ou ld be ob tain ed an d scrutinised b y Divisio na l Au dit Offices an d section s a t HQ rs .and irregularity taken up with t h e ir co u n t e rp a rt s i n a c c ou nt . F in al re sults of ch eck sho uld b e intimate d to Boo k ing HQrs.Se c tion at HQrs. in time fo r ta kin g suita ble action at th e time of the check o f co nso lida t ed app ro priation Acco unts/ Ann exu re s. 6. A fina l co py of th e Ap prop riation Ac c ou nt a s a c c ep t ed b y aud i t s h ou ld be se nt to C&AG o f I ndia with rema rks if an y. Re feren ces rece ive d from CAG in co nne ction with the se acco un ts sho uld b e att end ed to p ro mptly. Af t e r s u bmi ss i o n of all f in al c op ie s of App ro pr i at i on Ac c o unt s t o C A G , aud it certifica t e prescrib ed in p ara 8 o f Ra ilway Aud it Manu al sh ou ld be furnishe d. 303 . Appropriation Audit Appropri ation Accounts of Civil Grants (Para 421 Railw ay Audi t Ma nua l ) . Ap prop riatio n a ccou nts o f fo llowing Civil grant s rece ive d fro m Ra ilway Ad ministration are also to be checke d in this office. i. In terest on d eb t an d o t he r o blig ation an d red uction or avo idan ce o f deb t/cha rg es a . Sta t e Pro v iden t fu nd Principal Director of Audit, Central Railway 130 b . G e ne ra l P ro v id en t F un d c . S t a t e R a i l wa y Pro vi d e n t in st it u t i o n 1. Co ntribu tory 2. No n-con t rib uto ry d . O t h er de po s it A c c ou nt R a ilw a y s t a f f b e n e f i t f u n d ii. Pre -p art it io n p ay men t iii. Lo an s and ad van ces b y Ce ntral g ove rn me nt ( 1) . P . Lo ans a nd Ad v ance s ( i) I n t er es t b ea ri ng ad v an c e (i) Loans to Railwaymen's Consumers' Co-operative Society (2) Loans to Govern me nt serv ants (ii) Advance for purchase of other conveyance-cycle advance (iii) O t he r a dva nces 1. Adva nce for pu rch ase of ta ble f an t o Class IV staff 2. Adva nce for the pu rch ase of wa rm cloth in g. iv . Advances not bearing intere st Pa s s ag e a dv an c es O t h er ad v an c es Flood , Cyclone , Droug ht-relie f ad van ces v. Ho us e Bu ildin g Ad v an c e Civil gra nts shou ld be se lf-con tain ed ie. items of Defe cts in Bu dg eting , Misclassifica tion etc.sh ould be in dicate d in t he G ra nt itse lf. In a dd ition co mme nts as well as state ment o f misclassificat ion, if any, should be sent alon gwit h the gran t t o C&AG o f Ind ia. Au dit Certif ica t e on the se gran ts sh ou ld be se nt to C&AG o f Ind ia so on afte r scru t iny of th ese a ccoun ts eac h y ea r. 304. Appropriati on Audit Appropriati on Accounts of Railw ay Grants . Instructions contained in Chapter I V of Finance code Vo l I and Chapter VII of Accounts code Vol I may be ke pt in vie w while au diting th ese acco un ts. Th e prog ra mme fo r prep aration o f a pp ro priation a cco un ts is advised b y Ra ilw ay B oa rd eve ry y e ar. I t s ho ul d b e s e en t ha t t he t i me s c he dule f ix e d i s co mplied with . Au dited sta t emen ts sh ou ld be se nt t o CAG ’s office with in the time limit fixed. 305. Review of Performanc e Budgeting. In te rms o f directives co nta ined in CAG(R)'s office DO letter no. 904-135-RAIII /23-18/81 da t ed 2 1. 8 . 81 , a qua rt erly p erformance re vie w in re spe c t of th e variou s grant s o f the ra ilway p re pare d by th e divisio ns, wo rksh ops e t c. an d su bmit ted t o HODs as per pa ra 3 o f the Ra ilway Bo ard' s le tter no . 8 0-B-27 3 da ted 5 -5-80 is re quir ed t o b e c on du c t ed b y t he D AuO s , Aud i t O f f i c er s (W&S ) a nd Sr. / Aud it O f f ic e r(SHQ ) w i t h a v i ew t o b ri ng in g o ut r ep or t s o f t he ca s es / i n st anc e s of d ef e c t i v e b udg et i ng , d ef ec t s in proc e du re , f ai l ur es o f syst ems etc. and advise the same t o Booking(HQrs) section. Likewise, the co ns o li d at e d r ep or t s s ub m it t e d by t h e F A &CAO t o R a ilw ay B oa rd w il l be re vie wed in th e Bo oking (HQrs au dit section for ma king o ut co mme nts on Ra ilway's Budgeting system for an overall report t o CAG(R)'s o f f i c e . ( Au t h o ri t y : AUB/ I -1/8 0-81 d ate d 14 .9.8 1 file AUB/ I/1/Performance Re v ie w). Office Manual 131 CHAPTER X ESTABLISHMENT AND PROVIDENT FUND AUDIT SECTION 306 . Duties . Est ablishmen t se ctio n is re spo nsible for th e aud it o f a ll ch arge s relating to Ra ilway Servan ts bo th Gaze tted an d No n-Gaze tted . Instruction s fo r th e aud it of esta blish ment cha rg es a re con t ain ed in Ch ap ters 2, 3, 6 an d 10 of CAG ' s Ma nua l of Sta nd in g Orde rs (Au dit) and Ch a p t e r X I I I o f R a i lw a y A u d it M a n u a l. The relevant ru les on the subject viz. payme nt o f va riou s e stab lishme nt ch arge s are con t aine d in th e In dian Ra ilw ay e s t ab li s hmen t c od es , C ha pt er VI I I o f I nd ia n R ai l wa y F in an ce C ode vo lume I: Chapters IX to XIV of Indian Ra ilway code for Accounts De pa rtme nt Vo lume I; th e In dian Railwa y Estab lish me nt Ma nua l and Ma nu al of Railway Pe nsion Rules. S pecia l rules, and proce du re s ap proved by co mp ete nt au thorities fo r in dividu al Railwa ys sh ould also be bo rne in mind . Th e du t ie s o f Est ab li s h me nt an d Prov i de nt F un d A ud it Se c t i on c an be b road ly cla ssifie d as und er: 2. Establishment & PF Au dit Se c t i o n a t H e a d Q u a rt e rs . i. Au dit of pay T.A bills an d oth er p erson al claims o f a ll Gaze tted O f f ic e rs a t H d. Q r s . b ot h A c c ou nt s a s we l l a s ot h er t ha n A c c oun t s and also those of Divisional Accounts Offices and Traffic Accounts Offices. ii. Au dit of pa y, TA and oth er p ers on al c l a im s in c lu di ng Wo rkm e n' s c om p en s at i on A c t pa y me nt s o f a l l s u bordin at e i n clu di ng c l a s s I V s t a f f in t h e H e a d q u a r t e rs o f f ic e s an d in th e o ffices att ache d to H ea dq ua rt e rs ( ex c ep t Wo rk s h op s t a f f an d ot h er s t a f f un de r t he con t rol of the wo rksh op Accou nts an d Con stru ction Accoun ts Bra nc he s ). iii. Au dit of pro vid ent Fu nd Acco un ts and pa yme nts the refrom relating to the staff me ntion ed at ite ms (i) an d (ii) ab ove , Pro vid ent Fund Acco un ts of G O s un de r t he co ntro l o f Con stru ction Acco unt s Dep artment are also aud ited by this sect io n. iv. Au dit o f pe nsion ca se s o f all Ga zette d o fficers an d su bo rd in ate sta ff atta ched to Hea dqu arters office s a nd G O s of Acco unt s a t Divisions. v . Au dit o f p ay T A a nd o t he r pers on al c l a im s o f s u bo rd in at e s t a f f o f the of fices of the Pr.Director of Au dit, Western Ra ilway and North ern Railway includ ing payme nt fro m Pro viden t Fun d and c e r t i f i c a t i o n o f p e n sio n s t o t h e st a f f . vi. Au dit of staff Benefit Fund accoun ts includin g payments therefrom a nd co ntribu tio n th ereto ; 3. Est ablishmen t & PF Au dit Se ctions in Divisio na l Aud it Offices i. Au dit o f Pay, TA b ills an d oth er p ersona l claims of GOs atta ched to Divisions (other than Accounts Depart ment) ii. Au dit o f Pay, TA an d oth er pe rs o na l c la im s of a ll s u bo rd in at e staff includin g class IV staff (exce pt wo rksh op an d co nstruction s t a f f ) in t h e Div i s io n a l o f f i c e s a n d offices attached to divisional o f f ic e s . iii. Au dit of Pro vid en t Fund Acco unts a nd payme nts the re f rom relating to staff at (ii) above. Principal Director of Audit, Central Railway 132 iv. Au dit of Pen s io n c as e s o f s t a f f a t ( i i) a bo v e (A c c oun t s a s w e ll a s other than Accounts Depart ment). 4. R ec o rd s m an ag em en t i n t he o f f i c e o f t he Pr. Dir ec t o r of Au dit ; M u mb ai CS T and Branch O ffices : As p er i t em n o. 5 of t he gu id el i ne s re ceived u nde r HQrs. Ltr. No . 9 - O ld re c or ds / 1 6- 98 d t . 5 . 4. 0 7, f o llowi ng o f f i c ia l s w er e n om in at e d as R ec o rd Administrato r, Re cord Officer an d f or Reco rd con t ro l commit t ee by t he Pr. Dir e c t o r o f Au d i t . 1. Record Administrator :Dy.Direct or/Director 2 . R e co r d O f f i c e r Sr. Au d i t O f f i c e r i n Ch arge of EHQ Sn 3 . R e co r d C o n t ro l 1 . A Au O s o f E H Q & Commit t ee ECPA Sn. 2 . We l f a r e A s s is t a n t 3 . T w o j u n io r m o s t Re c o r d k e e p e r s posted at HQrs. I t w i l l b e t he r es p on s ib il i t y of t he abo ve designated officials to mo nitor the action ta ken by ea ch Bran ch officer for we edin g out an d de stru ction o f o ld re cords as per chapter XII of CAG’s Manual of standing orders (A dmn), Vol . I a nd i ns t r uc t i on s r ec eived from time to time from HQrs office. A qua rt erly rep ort mu st also b e su bmit t ed to the Pr. Direct or of Au dit by EHQ se c t i on t hr ou gh c al en dar o f re t ur ns . (POO No.1 21 2 d ate d 3 1.0 5.0 7) 307 . Audit of sanctions: Paras 3 9 to 52 of MSO (T) an d p ara 20 2 o f RAM a nd pa ra 1 98 of th is Man ua l sh ou ld be ref erre d to . The sa nction de alt with in the Es tablishment Au dit Se ctio n generally re la te t o: 1. Creat io n, e xten s io n to curre ncy o r abo lition of posts 2. fixation of pay 3. Hon oraria a nd fee 4. Reward s 5. Rete ntio n of Qua rt ers 6. Ad van ces 7. Forfe itu re of PF bo nu s 8. W ri t e of f o f o ve r pay m e nt s 9. Ex - gr a t ia pa y me nt e t c . 2. Th e scrutiny of sanctions should cove r a review of Accounts office file s co nta ining prop osa ls the re t o a nd fina ncial co ncurren ce e t c. a nd also the dep artmen tal file s wh ereve r ne cessa ry. All the sanctions for creation or abo lition o f po sts a nd tho se for co nversion of temp orary po sts into perman en t po st s shou ld, a fter acce pta nce in au dit, b e trace d in th e sca le ch eck re gisters main tained by the Account s o f f i c e . I t s h o ul d be s ee n t ha t sa nctio ns for cre ation of te mp orary po sts and the ir exte nsion s are no ted in the Limite d cu rren cy re gister. 3. Co pies o f a ll Ra ilway Bo ard' s o rd ers a nd san c tio ns shou ld b e en dorsed to the Divisions. A certif icate to this e f f e ct sh o u l d b e su b m it t e d t o t h e BO mo nt h ly . 3 0 8 . A u d i t o f p a y b i l l s . M et hod o f s e le c t io n an d e x t en t t o w h ich p ay b i lls sh ou ld b e au dit ed a re g iv e n in t h e s ec r et m em or an du m an d ot h er o rd er s issu ed by CAG (R) from time to t ime. On th e basis of exte nt of che ck prescrib ed , th e whole field of a udit to be co vered sho uld be divid ed into units fo r b oth G O s an d NGOs. Each unit sh ould co nta in Dra win g (or Office Manual 133 Accou nts re nd ering) officers of more tha n on e Depa rtme nt. Howeve r if numb er of e mp l oy ee s is s m a ll an d i t i s no t po s s ib le t o f ra me t he prescrib ed n umb er o f un it s with t he co nd itio n men t io ne d a bove this cou ld be re la xed by th e Pr.Director o f Au dit. Even by su ch a re la xation , if f or ma t i on of p re s cri be d n um be r o f un it s i s n ot f e as i bl e, t he w h ole f i e ld ma y be divide d in to via ble un its a nd ta ken up fo r a udit pe riod ica lly say on ce in 3 or 4 mo nth s , as the ca se may be , so th at all t he u nits are cove re d in the prescrib ed pe riod satisfying the pe rce nta ge f ixe d. 2. W hi l e c on du c t in g a ud it o f pa y bi l ls , p ro v i si o ns of RA M , I nd ia n r ai l wa y s Co d e f o r Ac c o u n t s D e p a r t m e n t : E s t a b lishme nt Manu al of FA&CAO sh ou ld be b orne in mind. 3. The check of Gazetted Off icers pay b ills should inter-alia cover check of co rre s pon ding p ayslips or ch an ge she ets whe re ver p re pa re d an d mone y co lumns in salary Audit Register. The c h e c k o f p a y b i lls s h o u ld a ls o in c lu de s c ru t in y of t h e f o l lo w in g t o t he ext e nt o c c ur ri ng i n o r r e l a t in g t o t h e se lected pay bills. i. I n c re me n t s wit h t h e s e rv i c e re c o rds, wherever such re cords are a va i la b l e i n t h e Ac c o u n t s O f f i ce . ii. Off iciatin g Ap po in tmen ts an d Ad dition to p ay. iii. O r i gi na l f i x at i o n of p ay on f i rst a pp oi nt m en t an d r e- f ixa t i ons o f p ay ot her th an tho s e d ue t o revisio n o f pa y scales. iv. Ar r ea rs o f pa y v . Rent rolls vi. Correctness of le ave salary v i i. S ub s ist e nce Al l ow an c e, i f a ny viii.Scale check 309. Changes in Audi t Procedure as a result of computerisation of pay bi l l s . On this Railway p ay bills have b ee n co mput erise d. Co nse qu ent on co m pu t erisa t i on o f p ay bi l ls , s om e m a rg in al c han ge s i n a ud it pro ce du re have be come n ece ssary. The se a re de tailed below: a) Th e Me mo ra nd um of d ifferen ces (viz. st ateme nt e xplaining the differences in pay drawn in the current months pay bills with that in the previou s mon t hs p ay bill) is p re pared o n the compu t er. Howeve r, the re ason s fo r va riat io ns in p ay d rawn e t c. a re no t be in g re co rded as wa s don e prio r to co mp ute risa t io n a nd as su ch it is in it s present form of little h elp in checkin g th e co mp ute rised pa y bills. b) Pay b i lls s ho ul d t he re f ore b e c h ec k e d w i t h r ef e r ence t o t he C ha nge s t at e me nt s o r a ls o k no wn as A RD s t a t emen ts (Add it io n, Revision and De letion state me nts). The pa y in re spect o f ea ch e mp loyee un de r ch eck shou ld be compa re d with t he p ay in t he p revious mo nth s pay b ill. The difference should tally with Changes (ARD) statements. 2. ARD State men t s: Da ta re ga rd in g ea ch emp lo y ee i s f ir s t c om pi l ed o n t he Ma ster Data form and a Ma ster file is crea ted for ea ch e mp loyee . The co mpu t er p re pa re s th e pay she et of emplo yees acco rd in g to the d ata st ored in the Master file. However, at a la ter stag e if a ny p articular item on the Maste r dat a file nee ds ch an ge , such ch ang es are ca rried ou t throu gh ARD fo rms. Th ese fo rms a re use d for a ddin g revising or d eleting any pa rticu la r type o f in forma t ion alrea dy on th e Ma ster file of the employe e. In orde r to ena ble the co mp ute r to re cord t he cha nge s accurate ly, it is imperat ive tha t the ARD state me nts a re pre pared co r re c t ly . I t i s t h eref o re e s se nt i a l in a ud it t o c he c k t h ese s t a t emen t s . Principal Director of Audit, Central Railway 134 Gen erally, th ese sta t emen ts are no t a ccompa nying th e pa y b ills and t here f ore t he s e s ho ul d be c h ec k e d i n t he A c c ou nt s of f i c e w he r e t he y a re avai l ab le . I n c as e o f o f f i c es ot h e r than Accounts these should be checked during lo cal inspe c tion s of th e co nce rn ed offices. 3. The re are d ifferen t type s of ARD fo rms fo r d if f eren t pu rp oses a s given belo w: A RD Form No. Purpo s e fo r wh ich it is used 1. No.5 00 Wh en e mploye e is tra nsfe rred from on e b ill un it to a no t he r 2. No.5 50 Fo r ch an ges relat in g to th e d ep artme nt, Fa the r’s, Hu sba nd’s na me etc.d ate of birth, da te o f a pp ointme nt a nd H ea dqu art er s 3. No.5 51 Ch an ges re la tin g t o pa y , d e s igna tion etc 4. No.5 54 Ch an ges relat in g to De arne ss a llo wa nce , spe cia l p ay, p erson al pa y NP Allow, Deputation pay , CCA HRA etc 5. No.556 Changes re la ting t o PF recovery Income tax 6. No.5 01 Ch an ges re la tin g to re c o v e ry t o - w a rd s I n s t i t u t e f e e s , Club fees etc 7. No.5 55 Ch an ges relating to an y o t he r allowan ces includ ed in C a rd n o 6 5 5 o f t h e M a s t e r D a t a F o rm 8. No.5 58 Ch an ges in ad vance s take n u p b y the emplo yee 9. No.5 59 Ch an ges policie s 10. No.5 60 Ch an ges re la tin g t o So ciet y d epo sit s of th e e mploy ee 11. No.5 61 Ch an ges re la tin g t o So ciety loa ns o f the emplo y ees 12. No.5 62 Ch an ges re lating to reco very of ren t fo r occu pat io n of q ua rt e r s . relat in g to re coveries to wa rd s in suran ce 4. `Chan ge in -p ut f orms' Apa rt fro m th e ARD forms re ferred to above, there are `Ch an ge in pu t forms' wh ich ad vise the mo nth ly ch an ges. Distinction has to be drawn bet we en the ARD fo rm an d th e ch an ge in pu t form. The f or me r giv es i nf o rma t io n f o r ch an ging t he m as t e r d at a of a n e mp l oy ee wh ile th e latte r g ive s mo nthly cha ng es in emolume nts with ou t a ffe ctin g the ma ster da ta ca rd . The re are five t ypes o f cha ng e in ch an ge in pu t fo rms as de tailed be lo w: a) Ab sen t ee state me nts (cod e 6 01) This is used to a dvise th e va riou s s pe l ls , a n e m ploy e e w as a w ay f r om d ut y d ur in g t h e m o nt h . b) Promo t io n, re versio n & increme nt fo rm(cod e 6 02 ).Th is is use d to ad vise ch an ges of p ay, if an y du rin g th e mo nth on a ccoun t o f cau s es like p ro motion s , reve rsio ns, in cremen ts, g rant o f sp ecial or pe r so na l pay e t c . c ) Allowan c es (cod e 6 05 ) Th is is u s ed where an y allo wan c es like t r av e ll i ng a ll o wa nc e , c on ve y an c e al l ow a nce a rr ea rs o f pa y et c . ha s to be paid . Office Manual 135 d) Railway Qu arters (Co de 608 ) Th is is u sed on ly wh en a qu arte r is allotte d o r va cate d b y an employe e d urin g th e mon t h a nd the cha nge ha s not b ee n in corpo ra t ed in th e Maste r Data Form th ro ug h ARD sta t emen t. e) Misce lla ne ous Re cove ry (cod e 6 09 ). This form is use d to ad vise recove ry arisin g d uring the mon t h on acco un t of items like reco very of o ver payme nts du ring the p re v ious mon t hs, reco very o n a c co un t o f s t o r e s t a k e n f rom co- op er at i v e s t o re s et c . Th e a bo v e d oc um e nt s a re av a il ab l e o nl y w it h t he pa y bi l l p re pa ri n g un i t s . 5. T h e au dit c h ec k t o ensu re t h e c or re c t ne s s o f p re pa ra t io n of s er v ice docu ment s with re feren ce to in it ia l d ocu me nts sh ou ld be exe rcised du ring in s pect io ns o f t he re s pe c t iv e Ex e c ut i v e O f f i ce s . 6. Check of Abstract of Allocation: Pay bill should be selected for this ch eck to the extent prescrib ed in CAG (R)' s le t t e r n o . 5 7 1 -RAI / 8 -7 -7 1 -II date d 1 7.2 .72 an d th e n et a moun t fo r wh ich che que is drawn by man ua lly tra nscrib in g th e e ntrie s in the individu al' s pa ysh ee t, un de r th e va riou s deta ile d he ad s a nd to tals struck fo r compa rison with co mp ute r g ene ra ted t o t a ls . 7. In other cases, checks should be e x e rc i s e d (a ) o n t h e a c c u ra c y o f t h e ac c ou nt h ead s t o w hi c h t he a m ou nt ha v e b ee n de bit ed c re di t e d an d ( b) wh ere man ua l a lte ra tions h ave b ee n mad e in printe d pa y sh ee ts by the Person al/Acco un ts Depa rtme nts with re feren c e to such alteration s. 8. Supplementary checks: a. It sh ou ld be see n th at th e co ding she ets a re re ceived in resp ect o f all bill units; b. The error lists an d e xcep t io n re ports g en erate d in the co urse o f pro ce ssing shou ld b e e xamined with a view to verifyin g tha t the ap prop ria t e co rrective a ction wa s take n in all ca ses: c . I t s ho ul d be s e en t h at v ar io us c en t ra l a nd h as h t ot al s w e re p ro pe rl y ag reed ; d. It sh ou ld be examine d th at th e run -t o run tota ls in ten ded to ensu re pro ce ssing in teg rity were d uly ag reed ; e. Errors de tecte d in au dit d uring the che ck sh ould be a nalysed caref ully an d errors o n a cco un t of de fective p ro grammin g take n up w i t h t h e E D P Ma n a g e r: t h is ch e ck should be extended to cover such c a s e s d e t e c t e d i n t h e co u rse o f s c ru t i n y o f p a y b i l ls b y Acco un ts/Pe rso nne l Bran ch a s well. Fo r this p urpose e rrors rep orted to th e d ata proce ssin g b ranch sho uld be ana lysed and it sho uld b e se en t hat re me dial actio n is taken to rectify th e e rrors and necessary corrections to prog ra mmes are made. (CAG's le tters no . 20 38 -1 61 -R AI / 8-7/ 7 1- I I a t 2 2. 6 . 71 ; 57 1- R AI / 8 -7 1 I I d at ed 1 7. 2 . 72 : 1192-RAI/8-7/71-II dated 10.5.74) 310 . Labour Pay Sheets: L abo ur p ay sh ee ts sho uld be che cked du ring lo cal inspections only. 311 . Special Pay Sheets and Supplementa ry Bills. It sh ould be seen wit h r ef er e nce t o t he R eg is t e r of Bills r ec e i ve d (A 2 04 k no wn a s Au -6 Re gister) and the Re gister of sta t ion Pay Orde rs Error! Bookmark not de fi ne d. t ha t s pe ci a l p ay s he et s an d p ay m en t s ma de f ro m s t a t i on e ar ni ng s re la ting to the unit selected f or audit of pay bills also come under audit in that mo nth. All such bills and arre ars bills should be comple tely checked. Principal Director of Audit, Central Railway 136 312 . Overtime and Runni ng allowanc e Bill s. Whe re ove rtime/run ning allo wance is drawn throu gh re gu la r la bo ur pa yshee ts/salary b ills, all the overtime/run ning allo wan ce bills se lected for a udit d urin g th e mon t h sh ou ld be c h ec k ed . W he r e ov e rt i m e bi l ls are p re pa re d s ep ar at e ly, t h e e xt ent o f ch eck la id down in CA G's let t er no.2301-RAI/8-7 68 dated 27.8.66 forwarded to a ll co nce rn ed un de r COR se ct io n' s le tter no.Au/COR/Con/13(4) pt.V d a t e d 3 0 . 9 . 6 8 sh o u ld b e f o llo we d . (CAG ' s l e t t e r n o . 3 9 1 6 - R AI / 8 -7 / 6 0 Vol . I I d a t e d 1 1 . 9 . 68 . Au / CO R / Co n / 1 3 ( 4 ) Pt . VI d a t e d 7.6. 73) 313 . I n c o m e T a x d e d uc ti on s i n P a y P e n s i o n e tc . It shou ld be seen wh ile a ud iting the se bills tha t ded uction s on a ccoun t of income t ax are no t omit ted in cases wh ere such deduc t i on s s ho ul d b e clearly made. 314 . T r a v e l l i ng A l l o w a n c e Bi l l s. T.A claims are ge ne ra lly in clu de d in the re gular pay bills and should ther efore be audited alongwith audit of pay b ills. Tra v ellin g allowa nce jou rnals o f staff wh ose p ay e xceed s Rs.1400 (A.S.) PM are submit t ed to Accounts Office every month by bill pas s i ng o f f i c er s i n d up li c a t e. Af t e r i nt e rn al c h ec k o ne c op y i s r et ur ned t o the bill p assing off ice an d th e amou nts a ccep t ed by Accou nts o ffice a re in c lu de d i n t he p ay b i lls . T h e c o nn ect e d t ra v ellin g a l lo wa nce j ou rn al s sh ou ld be ob tain ed from the Acco un ts O ffice a nd a ud ite d. The TA b ills sh ou ld be a ud it ed with refe re nce to Pa ra s 22 2 of RAM; 4 14 to 41 6-AI, 1 98 , 201 of MSO (I) and Chapters I I and III of the Indian Railway Est ablishment Co d e Vo lu me I . 2. Wh en eve r TA bills are d ra wn in se pa ra te bills sele ctio n sho uld be taken for a ud it in the same mann er as pe r pa y b ills i.e . all TA b ills p asse d for payme nt se pa ra tely includ ed in the un it s selecte d fo r pa y bill sh ou ld be ch ec k e d a lo ng w it h t he pa y bi l l. 3. As the trave lling allo wan ce jou rn als in resp ect of sta ff who se pay doe s not ex c e ed R s . 14 00 / ( AS ) per m o nt h a re k ep t o nl y i n d epa rt me nt a l f i le s , t hes e s ho ul d b e c h ec k e d d ur in g l oc a l in s pe ct io ns . 315 . Attendance Registers. All t h e At t e n d a n ce re g ist e rs o f t h e Acco u n t s dep artmen t sho uld b e group ed into 12 un it s an d o ne grou p g ot se lected each mon t h f or che ck. Th e reg ist ers for e ach grou p sh ou ld be ch ecked with the salary bill for the mont h sele cted for au dit du rin g th e mon t h. 316 . Educational Assi stance Bill s and Tuition Fee Bills. The se items sh ou ld be au dited alo ngwith pay b ills mon t hly an d with re feren c e to the ru le s con t aine d in Ch ap ter XI o f th e In dian Railwa y Esta blish ment Code Volume I an d o rd ers issued for r e i m b u rse me n t o f t u it i o n f e e s . 317 . Medical Attendance Bi lls of GOs. The se bills shou ld be au dited to the sa me exte nt a s p ay b ills and with re feren c e to the rule s co nta ined in Ch apter IX of the Indian Railway Code for Establishment Vo lume I. 318 . Subsistence Allowance. Subsiste nce Allo wa nce drawn in th e pa y bills c o m in g u nd er a ud it or d ra w n s e pa ra t el y b ut pe rt a in i ng t o t he u ni t se l ec t e d f or a ud it s h ould b e c he c ke d. T he s u bsi s t en c e an d ot h er allo wance s g ra nte d to the e mp lo yee s u nde r susp en sio n shou ld be traced in to the register ma in tained in the acco un ts office for sub sequ en t adju st me nt wh en fin al ord ers are p assed by t he discip lin ary aut hority. 319 . D e a r n e s s a n d o t he r a l l o w a nc e s . Auditors should ma in tain ready re ckone rs sh owin g th e ra tes of va rio us allowan ces ap plica ble to differen t Office Manual 137 pay ran ges an d to d iff erent a re as in the reg ist er req uired to b e mainta ined b y a l l a u d i t o r s i n t e rms o f Pa ra o f RAM . 320 . Unpaid Wage s Statem ents . The check o f the un pa id wage s st at e me nt s c ons i s t s i n t he t r aci ng o f un pa id i t ems f ro m t he b il l s au dit ed in to th e u np aid wa ges st ateme nts (vide para 385 of RAM) 321 House Rent, Wa te r and conservancy charges. Rent rolls accomp anying th e pa y b ills fo r Ap ril pe rt aining to th e un it selecte d for aud it sh ou ld be co mp le tely che cked . In re sp ect o f pay b ills o f oth er mo nth s, variation state ment s re la ting to th e u nit se le cted for a udit sh ou ld be lin k ed with the re nt ro lls of Ap ril a nd a lso with th e varia t ion sta t emen ts of p re v i ous mo nt h s , i f n ec e ssa r y. Th e co rrectn ess of t he wate r and co nservancy charges re covere d should be ch ecked with ref erence to the type of quarters and the ra tes fixed by the Ra ilway Administration. 322 . El e ct r i c i ty c h ar g es . Wh ereve r the re coveries are mad e at the averag e rate , this sho uld be che cked with refe re nce to th e previou s mo n t h s , re c o v e ry . I n re sp e ct o f p a y b i l ls f o r t h e m o n t h i n wh ich t he differen c e o f ele c tricity cha rg es fo r 6 mo nths pe riod is ad ju sted , the re c ov er y s ho ul d b e c he c k ed w i t h r e f er en ce t o t h e s t a t emen t of E le c t ri c i t y ch arge s. 323 . Diet cha r ge s. S t at e me nt o f d i et c ha rg es are r ec e ive d i n t he Accounts office every month in respec t o f e a c h p a y s h e e t u n i t . I t s h o u ld be s ee n t ha t t he b il l s a re s e rial l y n um be re d pa y s he et un it w i s e an d t he missing n umbe rs are ca lled for by the Accounts of fice. Re coveries actually ma de throu gh the pay b ills as in dicate d in th e sta t eme nt o f diet charge atta ched to pa y b ill sho uld be compa re d with th e reco very sta t emen t re ceived in the Account s office in advance. 324 . Rec over y of a dvanc es . It should be seen t h a t re c o v e rie s o f adva nce s of p ay, lea ve sa lary, festival, co nve yance , h ouse bu ild in g e t c. are e ffe ct ed promp t ly in o ne pa y b ills. The en trie s in the sta t emen ts o f re coveries should be checked with re fe re nce to th e a ct ual reco verie s in the pay bills. 2. The re giste r o f TA ad van ce a nd t he re gister of le av e salary ad vance ma in taine d in the Accoun ts o ffice sho uld be reviewe d every mo nth alon gwit h the p ay b ills. In resp ect of item rela tin g to the u nit it sho uld be se en t h at t he re i s n o d el ay in r ec o v er y o f t h e adva nc e o r t he re a re no o ld ite ms out stand ing. 325 . Sc ale che ck. With re ference to the payshee t s se l e ct e d f o r a u d i t , t he act ua l n um be r of p os t s op erat e d s ho ul d be t r a ce d i nt o t h e s c al e c he c k re gisters. Scale ch eck sho uld b e do ne f or t he e ntire pa y sh ee t an d no t for t he s el ec t e d it e m s on ly . I t s hou l d b e ens u re d t ha t c a se s o f e x ce s s ope ra tion of p osts in e xcess are place d un de r o bject io n. Th ese re gisters sh ou ld b e reviewed a nn ua lly with refe re nce to inst ru ctio ns con t aine d in Par a 2 23 R AM . 326 . A l l o c a ti on. C or re c t ne s s o f a l lo c at i on o f e x pe ndit u re t o v a riou s hea ds of a ccoun ts sho uld be ch ecke d. Th e a mo un t s a llo cate d sho uld be tra ced in to Reve nu e Alloca tion Re gi sters, Works Registers as the case ma y be in respe ct of bills a udite d. 327 . Cadre Register of GOs. The se re gisters shou ld be reviewed annually with refere nce to instru ctio ns co nta in ed in pa ra 20 6 RAM. Principal Director of Audit, Central Railway 138 328. Fixation of pa y on fi rst appoi ntment and refixation of pay due to revi sion of scales of pay or other reasons. All cases of fixation of pay on first appoin tment and refixation of pa y i n re s pe c t o f t he u ni t s e l ec t ed for au dit sho uld b e a udite d to the exte nt p re scribe d. Fixatio n of pa y due to ge ne ra l revision of scale s o f pa y in cludin g up grad ation of ce rta in ca teg ories of sta ff sho uld b e ch ecked to th e e xtent prescrib ed by the Pr.Directo r of Audit. The ch eck shou ld be ca rried o ut acco rd in g to sp ecial orders/instructio ns issue d by the CAG(R). 2. Ad van c e of Pay, TA, Le ave sa lary , pa ssa ge etc. A list o f ad vance s paid sh ou ld b e p re pared alterna t e mon t h in respe ct of th e vou che rs for the mo nth to b e au dite d from th e Reg iste rs main tained in t he Accounts office and se le ction ta ken th erefrom. The in stru ctio ns con t aine d in Paras 43 0437 A sh ou ld be ap plie d in the au dit of these ad van ces. 329 . History of serv i ce s of office rs of the Railw ay De partment. Select io n sh ou ld b e ma de sep arate ly for Acco un ts Dep artmen t a nd oth er than Accounts Department. Correctness o f en t r ie s m ad e i n t he s t a t emen t s sh ou ld b e ch ecke d with re feren c e t o o rig in al reco rd s of service s ma in tained in the Accoun ts office. Attemp ts ma y be made as far as possible to see if all th e particulars req uired by the firm an d all the fa cts re la ting to the officers service require d to b e reco rd ed in th e History o f Services ha ve b ee n d uly includ ed. 2. A ge neral re vie w o f t he printe d `H istory of Se rvices' sho uld also be co nd ucte d to se e tha t it is g en erally correct and is in accord ance with the aud ited copy. 330 . Disa llowa nc e Lis ts. The se sh ou ld be reviewe d a nnu ally with re feren c e to instruction s cont ained in Para 2 24 o f RAM. It sho uld be seen wh et h er t he o bj ec t i on s r ai s e d re v ea l an y s peci al f ea t ure o r i rr eg ul ar proced ure req uirin g fu rt her inve stig ation in a ud it. 331 . R e g i s te r o f F o r e i g n Se r v i c e Co n tr i b u ti o n : Pa ra 2 2 5 o f RAM sh o u ld be r ef e rred . A g en er al re v ie w o f t he r eg i st er s h ou ld b e c on du c t ed e v ery half ye ar to see th at corre ct recove rie s are be in g ma de towa rd s leave sa lary, pen sions, PF co ntribu tio ns, g ra t uity, pa ssag es etc. in re spect o f pers on s s en t t o f or ei gn s er v ice , ot her D ep ar t m en t s et c . 332 . Rec over y of Gove rnment share of fe es re ce ive d by Ra ilway Serv ants A register is ma intained in th e Esta blishmen t section of the Accou nts off ice to re cord pa rticu la rs of e mp loyee s a uth orised to accep t fees an d of th e pa yme nts made to the m. While a ud it in g the sa nction s ac c or de d f o r ac c ep t an c e o f f ee s , i t s ho ul d b e s e en t ha t t he pa rt i c ula rs o f sa nctio ns a re du ly re corde d in th is re gister. Th e re gister sh ou ld be re vie wed half ye arly to se e t hat the fee s ha ve b ee n a ctua lly cred ited in f ul l; t h at t he G ov er n me nt ' s s ha re h as be en w or k ed o ut c or r ec t l y b ef o re ma kin g th e p aymen t to the employe es. (see pa ra s 20 35 R:22 13 t o 2 216 and Ap p.XXX RII) 333 . Pa yme nts unde r Wor kme n' s Compe nsation Act. Se e pa ras 60 1-RI; 232 RAM and Chapter XXIII of Indian Railway Establishment Manual. All pay m e nt s m ad e u nd er t hi s A c t s ho ul d be listed out from the Accounts office register maintaine d for this pu rp ose and selection take n from the list. I t sh ou ld b e en sured a t the time of se le ctio n th at all ite ms h ave b een in c lu de d in t h e lis t w i t h r ef e re nc e t o t h e p os t i ng s u nd er t h e re l ev an t ac c ou nt h ea d. Office Manual 139 2. These p aymen ts shou ld be a udite d with refe rence to the p ro vision s o f Wo rk men's Compensation Act. Railway Administration ' s file s con t aining the orig in al a c c id en t r ep or t , m ed i c al r ep or t, e nqu iry committe e re po rts, if an y, sh o u ld b e r e f e rre d t o . I t s h o uld be seen in ter alia that: a) th e p erson co ncern ed be lo ng s to th e cate gory of staff eligible for comp en sation un der th e W.C. Act; b) th e fact o f the inju ry an d th e na ture o f t he injury are p ro pe rly certified an d th e injury ha s no t be en attribu t ed to n eg lige nce ; c ) mon t hly wag es for a sse ssing the comp en sation , th e a moun t o f h al f m on t hly p ay m en t a nd l um ps u m c o mp en s at i on a re c or r ec t l y calcu la t ed an d d) H al f m on t hly p ay m en t s are a dj us t e d a ga in s t t he f i na l p ay m en t . 3. It shou ld also be ensu re d th at in re spect of ra ilway accidents, railway me n are p aid comp en sation e ithe r un de r Workmen 's Co mp en sation Act or und er th e Railwa y' s Act de pe nd in g up on whe t he r the railwa y me n we re wo rkin g o n the train or were travelling as pa sseng ers a t th e time o f acciden t. 4. A l i s t of ha lf m on t hly p ay m en t s s ho ul d be p re pa re d e v ery m o nt h f r om the reg ister ma inta in ed in the Accou nts of fice for the pu rp ose and se lection take n th erefrom. 334 . Leave Accounts of GOs including Leave sal ary certificate s for leav e of India . Th is is a qu arterly ite m. A list o f all o ffice rs-Acco un ts and othe r th an Acco unt s Dep artments sho uld be kep t a nd th e officers sh ou ld be g roup ed in to u nits fo r se le ction for au dit a cco rding to th e e xten t prescrib ed in th e se cre t me morand um. The le ave a ccou nts falling d ue in a qua rt er shou ld be so d istribu ted tha t the work lo ad is e ven in all the mo nths of the quarter. This it should be reviewed constantly with a view to ke ep it u p to dat e. Inst ru ctio ns con t ain ed in p ara 2 13 o f RAM sho uld be borne in min d wh ile che cking the lea ve accou nts. Le ave ap plication s n eed not be checke d. 335 . L ea ve Sal ar y c er t i f i ca te s f o r l ea ve out o f I n di a G a z et te d an d Non-G az e tte d O ffi c er s . The sele ct io n sh ou ld be ta ken from th e Re gisters ma in tained in the Account s office f or Gaze tted and non-gazetted staff. Wh ile au diting le ave salary ce rtificate s instruction s give n in para 21 3 o f RAM shou ld b e bo rne in min d. 336 . Leave Ac counts of subordinates. Th e leave acco unt s o f no ngaz e t t ed of f i c er s of t he ac c ou nt s d ep ar t m ent o nl y are avai l ab le in t he Ac c ou nt s o f f ic e . T hese s ho ul d be c he c k ed q ua rt e rly t o t he e x t en t prescrib ed in th e se cre t me moran dum. In stru ctio ns g ive n in p ara 21 3-RAM sh ou ld be bo rn e in min d. 2 . A l i s t o f s t a f f o f A c c o u n t s De p a rt m e n t du e t o re tire with in the ne xt ye ar sh ou ld be p re pa re d at th e b eginn ing o f each official ye ar an d the ir leave accounts completely checke d b efo re the en d o f th e ye ar. A re cord o f the particulars of le ave accou nts ch ecke d sh ould also b e ke pt. 3. In t he ca se of le ave a ccou nts no t ava ila ble in a ccoun ts off ice (i.e. t hose re la t in g t o ot her d epa rt me nt s ) t he l ea ve ac c o un t s s ho ul d b e c h ec k ed duri ng l oc a l i ns p ect i on s t o t he e x t en t p re s c ri be d. T he l ea v e ac c o un t s o f employe es due to ret ire be fore the n ext in spe ctio n sho uld be scrutinised co mplete ly and no omissio ns a llo we d to occu r. Principal Director of Audit, Central Railway 140 4. The sele cted lea v e accou nts sho uld be ch ecke d complet ely from the co m me nc e m ent o f s er v ic e f ro m t he l as t e nt r y c he c k ed i n a ud it . P er s on al f il es c on t aining t h e le av e a pp li c at i on s m a y als o b e r ef er re d t o v er if y t he co rrectness of the entries in the leave account. 337 . Audit of Prov ident fund Ac counts. ( C h a p t e r X I I I R I . C h a p t e r XI I I . A I Sec.II I Chap ter 1 1 MSO(Au dit) an d Pa ra 24 8 RAM) The simp lified proced ure o f prep aratio n o f de ducti o n list s of SRPF re cove ries and ma in t en an c e of p ro v i den t f un d a c co un t s ha s b ee n i nt r od uce d on t hi s Ra ilw a y ( e x ce p t in t h e c as e of r un ni ng s t af f ). 2. Und er th is n ew pro c edu re , a complete de tailed state ment of reco verie s is s ub m it t ed t w i c e a y ear; o nc e i n t h e b egin ni ng o f t he y ea r w i t h t h e pa y bills fo r th e mo nth of March paid in Ap ril an d with th e p ay b ills for the mo nth of Sep t embe r paid in Octo ber. 3. In resp ect o f o t he r mo nth s, on ly the variation Memo showing va riation s of recove rie s only if an y are sub mitte d. (Railwa y Bo ard' s lette rs 6 3ACII/Director (s pl) 21 dated 24.8. 64; 63-ACII/ (S pl)2 1 dated 26.7.72) 4. In re spect of pa y b ills fo r th e mo nth s o f March pa id in April and Sep t embe r p aid in Octo be r, th e PF de du ctio n o f a ll emp lo yee s se le cted for aud it sho uld be traced from th e pa y bills in to ded uctio n lists an d fro m the la tter in to th e Provid ent Fu nd led ge rs. In re sp ect o f oth er mo nth s, ded uction s of o nly tho se emp lo yees wh ose n ames a pp ear in th e variation me mo en clo s ed with the pa y bills sele cted for mo nth ly aud it are trace d into the PF ledgers. (CAG's letter nos.64 7-590-RAI/8-11/73 dated 5.3. 74, 2099590 -RAI-8 -1 1/7 3 d ate d 1 4/1 5-10 -7 4.1 110 -590 RAI/8 -II / 73 dt.3 0/3 1.7 .75 ) 5. Where simplifie d proce du re h as no t bee n ad op ted , aud it sh ou ld be d one as pe r in stru ctions co nta i ned in p ara 2 25 of RAM. 338 . H a l f y e a r l y r e v i e w o f P F l e d g e r s. A h al f y ea r ly r e vie w of PF le dg ers acco un ts sho uld be do ne in order t o e nsu re th at p ostin gs o f le dg ers are no t in arre ars. Pr.Dire c tor o f Aud it ha s de cid ed th at a g en eral re v ie w o f P F l ed ge rs w ou ld be s u f f ic i e n t . (CAG ' s le t t e r n o . 2 1 1 5 -RAI / 8 -7 / 6 6 KWI d t . 1 8 . 5 . 7 0 a n d A u / . CO R/ Co n 1 3 (4 ) Pt . VI ) 339 . Tem porary withdrawal s from provi dent fund. (Para 1 32 0-RI ; Pa ra 3.11 .4 MSO (Aud it) a nd Para 226 of RAM). All a dvan ces fro m p ro vid en t fund wh ich are recove ra ble a re t re ate d as Temp orary withd ra wals and aud ited to th e e x ten t prescribed in th e se cre t memoran du m. It sh ou ld b e se en tha t th e adva nce s ha ve bee n sanctio ned b y the co mpe t en t a uth ority an d tha t t he con dition s un de r which the a dva nce s can be g rant ed a re fu lfille d. I n re s pe c t o f t em p orary w i t hd ra wa l s , f o r f in an c in g i n s ur ance policie s-it sh ou ld be seen tha t th e insu ra nce policie s ha ve b ee n a ssig ned to th e Preside nt and d ebite d t o th e accou nts office. The te mp orary advances passed in such cases should be t ra c ed i nt o t h e R eg is t e r o f Insura nce po licies ma intain ed by the Accou nts office. I t sh ou ld b e seen that th e pa rticula rs of the re ceipts for t he insu ra nce p re mia a re n ote d in the registe rs, an d wh ere the emp lo yee s ha ve de faulte d in p aying the premia action h as be en ta ken in te rms of Pa ra 133 5-RI. In cases whe re the po licies ha ve ma ture d befo re the re tire men t o f th e emplo y ee, it sh ou ld be se en th at th e tot al amou nt withdra wn with in terest h as be en rep aid to the fun d b y the employe e. Office Manual 141 340 . F i n a l w i th d r a w a l s f or P r o v i d e n t F u n d . ( Para 1 32 2, 1 32 3, 1 337 R I and P ar a 2 39 of R AM ). Al l w i t hdra wa ls f r om P ro v id en t F un d in f u ll o r in part wh ich are not re cove ra ble sh ou ld be trea ted as fin al wit hdrawa ls and aud ited to th e ext ent prescrib ed in the secret me mo ra nd um. It sh ou ld be se en in sett le me nt case s th at the b onu s co ntribu tio n for t he broke n pe riod of t he l as t ha lf y ea r an d t he i nt er es t up t o t he d at e o f p ay m en t s h av e b een co r re c t ly c al c u la t ed a nd t h at a ll t he a m ou nt s du e f ro m t he e mp l oyee s hav e bee n a scertaine d a nd adju s ted aga inst th e b onu s. In the case of d ece ased employe e it sho uld be see n th at th e pa yment is mad e to the person s equally entitled to re ceive the amount. 341 . Reconciliati on of Provident Fund Ledger Accounts w i th G eneral Books. See pa ra 24 4 o f th e Ra ilway Aud it Manu al, Re concilia t ion of PF le dg ers with Gen eral Boo ks sh ou ld b e re viewed e very mo nth . Deta iled proced ure for th e reco ncilia tio n o f PF le dg ers with G en eral Bo oks und er the simp lified pro ce du re laid do wn in Railwa y Bo ard' s le tter 63/ AC.II/div .(spl)21 dat ed 22/24.8.64 should be borne in mind. 2. The po stings fro m th e in divid ua l led ge rs in to th e ch eck she ets sh ou ld be tra c ed in re spect o f PF Accoun ts che cked. To tals of the check sh ee ts in re spect of th ese and ot her Pro vid ent Fund Acco un ts re la ting to th e u nit se lecte d f or th e a ud it of pa y b ill sh ou ld b e checke d complete ly a nd traced with the De partmen tal su mma ry. To tals fo r all de pa rtme nts b e traced into t he s u mmary le dg er. T he g ra nd t o t al s ho ul d t he n be r ec o nc i l ed w i t h t he General Books. 342 . Spe c i a l c o ntr i b u t i o n t o PF/ G r a t ui ty . (Pa ra s 13 14 -RI an d 240 o f RA M ). I t s h o u ld b e s e e n t h a t t h e a mo u n t of sp ecial contribution to PF has bee n correctly ca lculate d with re feren ce to th e le ng th of se rvice an d pa y drawn. In re ckonin g the len gth o f se rvice, pe rio ds of brea k in service and othe r pe riod s n ot q ua lifying fo r special co ntribu tio n shou ld b e omit ted. In the case of ru nnin g staff, the average running allowance taken into accou nt sh ou ld b e te st che cked with refe re nce to t he pay shee ts in wh ich the ru nnin g allowa nce wa s actu ally d rawn. It sho uld b e e nsured tha t all due s f ro m t he employ e es are as c e rt a in ed a nd r ec o v er ed . I n t h e c as e o f dece ase d employe es, it sho uld be se en th at the pa yment is mad e to the person s lega lly e ntitled . 343 . Interest credi ts and Bonus contribution. I n st ru ct i o n s g i ve n in p a ra 228 of RAM shou ld b e fo llowe d. 344 . V e r i f i c a ti o n o f p e ns i o n a b l e s e r v i c e . Ve rification of pe nsion ab le se rvice in resp ect o f d epa rtme nts ot h er t ha n A c c ou nt s s h ou ld be d one during loca l insp ection s to the exte nt prescribe d in pa ra 2 4 of se cre t me morand um. In respe c t of Acco un ts offices, th is sh ou ld b e d one in ce ntra l au dit eve ry mon t h to the e xten t prescrib ed in p ara 2 4 of se cre t me morand um. Fo r th is pu rp ose a prog ramme sho uld be d rawn u p so tha t the wo rk may be e ven ly d istribu t ed. The selection shou ld in clude employ e es w ho a re l i k ely t o r et i re wit h in n ex t t h re e y ea rs . A r ec o rd of t he re sults of verification of serv ice should be ke pt in the service bo oks so a s to facilitate a ref erence while verifying title to pensio n. 2. Instru ctions given in Railway B o a rd ' s l e t t e r n o . 5 7 / A C . I I / 2 1 / 2 0 Pe n s i o n dt. 9 . 5.6 0 sh ou ld be bo rn e in mind . 345 . Audit of Accounts of railway staff benefit fund. The accounts of the staff be ne fit fun d are ma in taine d by FA&CAO at HQrs. Th erefo re , Principal Director of Audit, Central Railway 142 these sh ou ld b e che cked by Esta blishmen t HQrs. Au dit Section . The ch eck of exp en diture ag ainst g ra nts allo tte d shou ld be carrie d ou t b y divisional Audit offices. For t his purpose, EHQ sectio n should intimate Divisio na l Au dit offices con cerne d the particulars of gran ts sa nctio ned and the p urpo s e for wh ich the y a re sanctio ned . DAuO s sh ou ld t hen take u p the ch ec k r eg ar di ng ut il i s at i on of t h e g ra nt s . 2. F or t hi s p ur po s e, gran t s ex c ee di ng Rs . 100 0/ - s an c t io ne d s ho ul d be re ported t o Divisional Audit Of fices. EHQ sectio n should ma ke entry in t heir c al en da r o f R et u rn s t o t h i s e f f e c t . 3. An nual contribution to t he Staff Ben ef i t F u nd : C or re c t ne s s of t h e a mo un t credited annually to the Staff Benefit Fun d sh ould be ve rified with re feren ce to Pa ra 12 06 RI. 346 . Audit of pensions including Fami ly Pensions: A l i s t o f s a n c t i o n s to gran t o f pen sio n sho uld be ma de e very mo nth from the Re gister ma in tained in the Acco unts office and s el ec t i on t ak e n f o r n on -g az e t t ed and gaze tted staff to th e e x ten t prescribed . The pe nsion pa yments shou ld be audited with re ference to section III Chapter 6 of MS O (Audit), paras 235 and 24 9 of RAM Ma nu al of Railwa y pe nsion rules a nd oth er o rd ers issued by th e Railway Board fro m time to t ime. Sep arate sele ctio n sh ou ld be taken in respect of vouchers of family pension. 2. Comm utation of pension. On ly ordina ry pe nsion may be co mmu t ed . Co m mu t at i o n of f a mi l y p en s io n i s not p er m is s i ble. T he ma x i mu m a mo un t of p ensio ns th at ca n b e commut ed is o ne third of the pe nsion. 3. Ex-gratia pension. Aud it sh ould co nd uct as pe r CAG(R)' s instruction s co nta ined in lette r no . 12 63-RAI8 -2 1/ 7 2 d t d 1 8.5 .74 . (c / f Au/ EH Q / XX / I V o l . I I / 3 9 5 4 d a t e d 1 7 . 8 . 7 4) A separat e list of pensioners for surp rise check should be kept in t h e s e le c t i o n r e g is t e r. T w o c a s e s a re to be gen erally seen eve ry mon t h in ad dition to ab ove. Th e pe nsion payme nts (includ in g a rrea rs payme nts) mad e in the mo nth sele ct ed for aud it sho uld be checke d. Tra cin g in to t he Disb ursers Half o f Pe nsion sh ou ld be do ne qu arterly to th e e xten t p re scribe d. Inde pe nd en t selection sh ou ld be take n f or this pu rp ose . 347. Audit of pension pa id vouchers pens ion cases. Pension check Re gisters fo r all the Centra l Ra ilwa y employe es a re m ai nt ai ne d b y t he FA &CAO ce nt rally wit h ef f e ct f rom Ap ril 1 977 (c/ f FA &CAO' s POO n o. 3 o f 197 7). The re f ore, a ud it o f pe nsion pa id vou ch ers is don e b y this section und er item CAIV(ii) o f prog ra mme of au dit with e ffect from th e acco un ts for April ' 7 7. I n o rd er to e nsu re tha t au dit of pe nsion settleme nt ca ses d one b y D i v i s io n a l/ B ra n c h A u d i t O f f i ce s i s c o m p le t e t h e D i v i s io n a l / B ra n c h o f f ic e sh ou ld in tima te p articu la rs o f pe nsion ca ses au dited every mon t h(in clu ding nil repo rt s, if an y) commen cin g fro m Ap ril' 77 t o this Section by 10t h of the follo win g mon t h to wh ich the aud it of pe nsion case s rela te wit h the f ol lo w in g d et a ils . a. Name an d de signa tion of th e p en sio ne r b. Pension case no. c . Acco un t of pen sio n f ixe d includ in g fa mily p ensio n d. Class o f pe nsion e. Pe nsion pa yment aut hority no .& d ate f . Pla c e o f t re as u ry a nd un der w hi c h AG ' s j ur i s di c t io n t he t re as u ry f a lls s u b -p o s t e t c . Office Manual 143 g. Pe nsion pa yment orde r n o. a nd da te. 2. O n r ec ei p t o f t he ab ov e a dv i c es , t he E s t ab li s h me nt ( H Q r s ) Au dit S ec t i on sh ou ld en ter th ese p articulars in t he sele ction Register, Division-wise/ Sectio nwise an d ve rify th at the ite ms an d a mo un t of pe nsion ha ve b een ent e r ed c o r re c t ly i n t he c ent ra lis ed pe nsi on c he c k R eg is t e r m a in t ai ne d b y t h e FA &CAO 's o f f i c e ( POO n o . 1 0 4 0 d t . 3 0 . 8 . 7 7 ) 348 . Audit of Vouchers relati ng to Family Pl anning. Exp en diture on Fa m il y p la nn in g s c he me i nc u rred b y t h e R a ilw ay s is re i mb ur s ed by t he Ministry of He alth a nd Fa mily Plan ning thro ugh the Acco unt ant G en eral, Ce ntral Re ven ue. Th e Pr.Directo rs of Au dit a re req uire d to furnish an ye arly certificate to th e Accou nta nt Gen eral, Ce ntral Re ven ues to the effe ct tha t th e e xpe nditu re incurred on the Railwa y ha s b een au dite d. To ena ble the Pr.Directo r of Audit to fu rn ish t he r equ i re d c e rt i f i c at e , i t ha s bee n d ecide d t hat the vou che rs rela tin g to e xpen ditu re on fa mily plan ning sh ou ld be test che cked afte r ta kin g se parat e select io n to t he e xten t prescrib ed in re ga rd to th e vario us classes of vouchers. It should also be ensu re d t h at t h e c ha rg es b il l ed f or in c lu de add i t io na l c h arge s i n t er ms o f Para 2158 RII(CAG's letter 2178-RAI /5-9/64 dt. 31.7.64) 349 . Audit of Transactions relati ng to Deposits linked insurance sche m e. T he pa y m ent s m ad e u nd er t h is s c he me s h ould be c h ec k ed alon gwit h vouch ers fo r fina l wit hdra wa ls an d the e xten t o f aud it a pp licab le to final with drawa ls sho uld a pply to t h e se p a ym e n t s a l so . (CAG ' s l e t t er no.797-RAI/8-3/77 dt.7.7.77 Au / C O R / Se c re t / I d a t e d 2 0 . 7 . 7 7 ) 350. Bills on account of payment of ca sh equivalent of leave salary to famil y of Gove rnment se rva nt w ho di es in harnes s a nd ca sh pa yment in lieu of unutilised earned l eave on da te of retirement. The se bills are to be ch ecke d to the sa me exte nt as the su pp le men t ary pa y b ills in resp ect of u nits se le cted fo r mo nth ly au dit o f p a y b i lls o f O f f i c e rs a n d St a f f . ( Authority CAG(R)'s letter no. 1332-164RA1/8 -6 / 78 da ted 6/9 / 78 ). 351. Scope and extent of Audit check of the tr ansacti ons relati ng to Ra i l w a y E m p l o y e e s G roup Insurance Schem e. O f f i c e c op ie s of t he sch ed ule reco gn ise d (as pe r Anne xure `A' an d `E' o f the accou nting procedure prescribed under para 3 of R a i l wa y B o a rd ' s l e t t e r n o . 7 9 8 C I I / I / 4 date d 18 /11/ 198 1) a ttach ed to the b ill for t he month o f Ja nua ry or De cembe r e ach ye ar (a s may be availab le at th e time of insp ectio n) sh ou ld be checke d with re feren ce to th e pay bill d ur i ng in s pe c t io n of Execu t ive Offices. 2. The n ominatio n made by the Ra ilwa y se rva nts un de r th e sche me ma y be verified while checking the Servic e Bo oks during insp ection of the Ex e c u t iv e o f f ic e s / D P O o f f i ce s. 3. I n t he case o f sta ff o f th e Acco unt s of f ic e f o r w hi c h t he re i s n o lo c al in spect io n, th e ch eck a bove sho uld b e ca rried ou t du ring Cen t ra l Aud it . 4. Pa y m ent f ro m I n s ur an c e F un d a nd Sav i ng s F un d as r ec o rd ed in t he re gister as pe r an ne xure `B' (p art I I a nd II I) to th e acco un tin g pro cedu re ib id sh ou ld b e checke d to the e x ten t o f 5 % in resp ect of oth er t han accou nts staf f fo r th e pe riod co vered by lo cal aud it a nd 1 0% mon t hly for the Accou nts staf f with re feren c e to th e ta ble o f ben efits a dmissible a s issu ed by th e Bo ard an d the n omina tio ns made by the Ra ilway servan ts a s poste d in the ir service reco rd s. Principal Director of Audit, Central Railway 144 5. Base d on the a dva nce sche du le s sh owin g the to tal re coveries and payme nts d urin g t he mo nth DAUO/AuO' s sh ou ld sen d conso lid ate d figu re s t o t h e Bo o k i n g s e c t io n t i ll 1 5 t h April every year wh o will ch eck fin al payme nts ma de t o the Ministry o f Fina nce . (Au t ho rity: PO O 109 8 da ted 19/4 / 19 84 an d lett er no .Au/ CO R/ 13(4)vol.ix /4 182 da ted 3/7 / 84 ). 352 . Rev i ew of c ourt c ase s final l y s ettle d in va rious c ourts (s ta ff matters). In p ursua nce o f the instru ctio ns of CAG(R), all d ivision s and aud itin g sectio ns sho uld review cou rt jud ge me nts to se e whe t he r th ere is any ma terial worth comment in g Ra ilway Aud it Rep ort. All co urt ca se s re la tin g to sta ff ma tters o f He ad qua rters o ffices shou ld be reviewed b y EHQ Au dit S ec t i on an d t h ose p er t ain in g t o div i s io ns b y t he re s pe c t iv e division al Aud it Offices. Court ca ses de cid ed ag ainst Railwa ys a re to be re vie wed acco rd in g to th e exte nt la id down in COR section 's con f ide ntial le t t e r n o . Au / C O R / C o n . 9 V o l . I V d t . 2 5 . 2 . 6 6 . 2. Importa nt re sults of re view o f cou rt case s sh ou ld be rep orted to Pr.Directo r o f Au dit th ro ug h COR se ct io n. 353 . Audit of vouchers rel ating to the Offic es of the Pr.Direc tors , We stern and Northern Railw ay. G ener al : Payments made to Gazetted and n on -g az e t t ed s t a f f a nd o n c o nt i n gen t v o uch er s o f t h ese o f f i c es sh ou ld be aud ited by th e Estab lishme nt a nd PF Aud it se ction at Hq rs. The au dit of e stablishmen t a nd co ntin gen t bills re la tin g t o th ese offices sh ou ld be done in the same manner as laid down in sect io n III, Chapt er 3 of ma nual of s t a nd in g o rd er s (A ud it ) a nd Ch ap t er VI of R A M a nd t o t he s am e e x t en t as pre sc r i be d i n P ar as 4 an d 8 of t h e s e c re t m em or an du m (Ci v il) . 354 . Cop ie s o f san c tio ns of th e CAG fo r cre ation an d co ntin uat io n o f posts, gra nt of spe cia l pa y, p urcha se of furniture e t c. rela tin g to the offices o f the Pr.Direct ors, We stern a nd Northe rn Ra ilwa ys are en do rse d to this of fice by the of fice o f the CAG . Co pies of sa nction s a c co rded b y the Pr. Di r e c t o r o f Au d i t a re n o t h o wever received in this office. 2. Th e follo win g docu ment s are re ce ived from e it her FA&CAO or Pr.Directors of Au dit of these Railways. 1. St a f f o f f i c e o rd e r s 2. Pa y & a llo wa nce bills 3. Travelling Allo wa nce bills 4. Con t inge nt vo uch ers includin g Med ica l Atte nda nce Bills 5. St atement of Recoveries of adva nces (P ro vident fund, pay, cycle a dv an c e e t c ) 6. Grad ation lists. 3. Sanctio ns: A not e o f all sanct io ns sh ould be kep t in th e Audit Re gister ma in taine d in th e sectio n to fa cilitate the ch eck o f vouch ers when re c ei v ed. S anc t i o ns ha v in g l im i t ed c ur re nc y s ho ul d be en t er ed i n a se pa ra t e r eg is t e r m ai n t ai ned for the purpose. It sho ul d b e s ee n t h at t he sa nctio ns ha ve not b ee n op erate d be yond the p erio d of sa nction b y re vie win g th e reg iste r e very mont h. Sa nction s relating to co nting en t vo uch ers are also reco vered in th e section which sho uld b e re ferred to wh ile au diting the cont in ge nt vo uche rs . As and w he n p ay m en t s a re m ade and t he releva nt vou cher au dited , a n ote sh ou ld b e kep t o n the sa nction t hat t he s an c t io n h as b ee n e x hau s t ed t o avoid do uble pa y me nt s a ga in s t the same sa nction . Office Manual 145 4 . St a f f O f f i c e O r d e rs . St a f f o f f i c e o rd er s i s s ue d by t h e Pr. D ire ct or s o f Aud it , We s t ern a nd No rt hern R a ilw ay s a f f ec t i ng t he emo lu me nt s a re re ceived in th is of fice . On rece ip t, the p articulars shou ld be n ote d in the A u d it R e g i s t e r t o f a c i l i ta t e t h e ch e ck of salary bills. The office orders re gard in g the gran t o f ad vance in cre ment , o rig in al fixa tion o f pa y e ither on f ir s t a pp oi nt m en t o r p ro m ot i on t o high er p os t s h ou ld b e c h ec k ed co mpletely as to the correctness of fixa tion o f pay et c. with refe re nce to sa nctio ns an d rule s on the subje c t office orde rs co mmu nicating the co n f i r m a t i o n s o f s t a f f s h o u ld a l so b e c h e c k e d c o mp le t e l y wit h r e f e re n c e t o the sa nction s to p osts ava ila bility of vaca ncies, th e da tes from wh ich va c an c ie s are a v ai l ab le et c . 5. C i rc l e Aud i t I nd ex R e gis t er. A ll l et t e r s, s an c t io ns o rd er s a nd v ouc h er s re ceived sh ou ld be e nte re d in th is reg iste r a nd the re gister pu t up to DO mo nt h ly s h owi ng t he dis po s al of t he se do c um en t s . 6. Pay & a ll o wa nce s b i lls . Pa ra of R AM l ay s do w n t ha t t he a ud it o f es t ab l is h me nt an d c o nt i ng en t b il l s r el at i ng t o R ai l wa y Au dit o f f i c es s h ou ld be do ne in th e same mann er as la id down in Section III , Ch apt er 3 o f MSO(Aud it ) an d t o t he same ext ent as prescribed in Paras 4 and 8 o f se cret me morand um. (Civil). According ly, t h e o f f i c e s o f t h e Pr. D i re c t o r s o f Aud it We stern and Northe rn Railwa ys sho uld be divid ed into un its and se l ec t i on of u ni t s m ad e e v ery m ont h f o r a ud it . 7. As r eg ar ds au dit o f p ay bi l ls of G O s t he e x t en t o f aud i t p re s c ri be d in CAG' s secret lette r n o. 80 4-TAI/3 95 -7 2( KWI ) o f 5. 1 1. 7 3 s ho ul d b e f ol l ow ed by dividing the field int o suita ble u nits fo r se le ction and che ck. 355 . Sc ale c hec k: Pr. Directo rs of Audit ha ve be en d ire cted to se nd a co py of th e mo nth ly cad re position o f Sr/ Au d i t O f f i ce rs t o Pr. Dire ct o r o f Aud it w ho h as b ee n no mina t ed t o a ud it t he i r bills t o en able t h e l a t t er t o exercise scale check in re spect of SOs/AA uOs.(CAG endtt. 1062-RAI/8II/68 dt. 7.3. 70). 356 . Arrear or refund claims. Exce pt in th e ca se of pre-au dit o f claims, Pr.Directo rs o f Au dit ha ve be en dire c t e d t o f u rn is h c e r t i f ic a t e t o t h e followin g effect. a) drawa l o f arrears h aving be en n ote d in the orig in al lette rs; b) no n-drawal a nd non -payme nt o f cla ims e arlie r. All a rrea r cla ims sh ould be checke d with re feren ce to the se ce rtificate s. 357 . Chec k of Inc r eme nts . Pr.Directors of Aud it ha ve be en directed to f ur ni s h t he p ar t i c ulars o f le ave a s w el l a s a l l ot h er e v en t s n ot c ou nt i n g f or in cre me nt sho uld be sho wn cont in uou sly in the incremen t st ate me nts, with help of wh ich th e in cre me nts drawn in th e p ay bills sh ou ld b e ch ecked . In ca ses of doubt, serv ice books of th e sta ff co ncern ed ma y called for ch ecking increment cert ificate. (CAG ' s e n d t . n o . 1 0 0 2- RA I / 8 - 1 1 / 6 8 d t . 7.3. 70) 358 . T.A. Bill s. Ra ilway au dit sta ff a re g ove rn ed by T.A. ru les co nta ined in In dian Railway Esta blish me nt Cod e (Ch apt er II). Th e in stru ctions given in Pa ra s 108 to 201 should be born e in mind. After the bills have been ch ecke d a nd e nte re d in th e Audit Re gister of b ills of GO s the y shou ld be su bmitted with the Audit Re gister to t he office respo nsible for fin al acceptance. (c/f para 202 of MSO(T). Principal Director of Audit, Central Railway 146 359 . C o n ti n g e n t B i l l s . Th e c o nt i ng en t b i ll s ho ul d b e au dit ed in accorda nce with t he instruct io ns con t aine d in Se ction II I Ch ap ter 4 of MSO (Audit). The reg ist er of spe cia l ch arge s an d the registe r o f re curring payme nts in from n o. 33 a nd 35 sh ould be main taine d t o re cord these vo uch ers afte r au dit. 360 . Educational Assistance Bills. These are g en erally inclu ded in the re gula r p ay b ills and the re f ore sh ou ld be au dited alon gwith th e a ud it o f pay b il l s . T he s e s ho ul d b e c he c k ed w i t h r ef e re nce t o t he o rd er s is s u ed b y the Govt. of In dia o n th e su bject. 361 . State m ent of re cove ries of a dva nces . T h ese s t a t emen t s a re re c ei v ed f ro m t he Pr. D i re c t or s of Au dit d ir ec t l y a nd a n ot e s h ould be k ep t in the Au dit Reg ist er of Adva nces abo ut grant of fresh a dvan ces to watch the re co veries. The se sta t emen ts sho uld b e co mp ared with the previou s mo nth ' s stat emen ts to see th at all ba la nce s ha ve bee n carrie d fo rwa rd correctly and re ferred to at the time of audit of pay bills. In order to watch that th ese stat emen ts a re rece ive d re gu la rly an d checke d a sep arate p age sh ou ld be allotte d fo r the pu rp ose in the selection registe r. 362 . Audi t Ce r ti fi c ate. Para 611 o f the Audit Ma nu al lays d own tha t wh ere ap propriation a ccoun ts relat e wh olly or in pa rt to transa ctions the aud it o f which de velop upo n an Sr/ Aud it O ffice r o t he r th an th e Acco un tan t G en er al w ho p re pa re s t he r ep or t o n t h e App ro pr i at i on Ac c o un t s , t h e l a t t er sh ou ld o bta in a n Aud it Certifica t e in re spect of such tran saction s inclu ded in th e Ap prop ria t io n Acco un ts. Acco rding ly, a a udit certificate is issu ed to t he Pr. D i re c t or s o f A ud it , W es t e rn a nd N or t he rn R a ilw ay s w hos e establis hment and cont in gent bills are audited by this office as described in the ea rlier pa ra grap hs. Para 422 of RAM sho uld a lso be refe rred to in this con ne c tion. Th e fo rm of the ce rtificate is g ive n in a nne xure to this Ch a p t e r . I n c a s e t h e a u d it i s n o t co mplete d f or wan t o f vo uche rs the ce r t if i c a t e m ay b e q ua li f i ed ac c o rd in gly an d i s s ue d. 363 . Audit of Provident fund Accounts of Rail way Audit Staff. Instruction s con t aine d in p ara 73 o f RAM sh ould be follo wed . 364 . Audit of Pension cases of Railw ay Audit Staff. Pe nsion sa nctio ned by Pr.Direct ors o f Aud it in resp ect o f their staff o r Weste rn and No rt hern ra ilwa ys is pre -a udite d by th is of fice . Pen sio n paid vou c he rs in re spect o f Ra ilway Audit sta ff are re ce ived in the o ffice of FA&CAO from the Accou nta nts G ene ral con cerne d a nd the exp end it ure o n p en sio n o f Aud it s t a f f i s n ot t o t he Civ i l h ea d bu t to th e Railway Acco un t hea ds viz. abstract II. Therefore, audit of pension paid vouchers in respect of audit st aff is d on e by the re spe ct ive Pr.Directo rs of Audit alo ngwith th ose o f ra ilways emp lo y ees in th e same man ner an d to th e same e xten t a s prescrib ed in & ite m CA IV (ii) of the secret memo ra nd um (ra ilways). 365 . Selecti on register In te rms o f p ara 6 of th e secret me mo ra nd um (c ivil) record of the vouchers sele cted f o r a ud it s ho ul d b e ma in t ai n ed in t he f o r m p re s c ri be d ( v id e a nn ex ur e 4 2 t o t hi s M anu al) . I ns t r uc t i on s co nta ined in p ara 6 refe rred t o ab ove sh ould b e bo rn e in min d while se l ec t i ng v ou c hers f o r a ud it . 366 . C u r r e n t r e v i e w. Af ter audit is completed sele ction for current re v ie w b y SO s ho ul d b e t a k en t o t he ext e nt l ai d d ow n i n p ar as 1 1 at s e q. o f se cret memoran du m (civil). Th e current re vie w Re gister sho uld be ma in tained in the prescrib ed form given in Annexure 43 t o t h i s M a n u a l. Office Manual 147 367 . Pos t R ev i ew . I n t e rms o f p a ra I A o f S ec r et M em or an du m ( c ivi l ), t he post re vie w sh ou ld be do ne in in terna l aud it. Acco rd in gly, th e work d one in this section is re viewed by the I n t e r n a l Aud i t s e c t i o n ( vi z . E CP A) . 368 . Reconciliati on Register. In o rd er to f acilita te submission of an nu al ce rtifica t e of aud it a nd also to wa t c h t h a t a l l t h e v o u c h e r s f o r t h e expe nd itu re bo oke d th e a ccou nts a re re ceived an d a re take n int o a cco un t for th e pu rp ose of a udit a re gister sh ou ld be mainta ined wh erein the amou nts a s per th e certificate s of e x pen d i t u re re c e i v e d f ro m t h e re s p e c t iv e Accou nts Off ice s as also th e a mo un t s of th e vou che rs a ct ually re ceived for aud it sho uld be po sted un itwise ev e ry mo nth a nd a re co ncilia t ion be tween t wo s et s of f ig ur es e f f ec t e d. T hi s r egis t e r t oge t he r wit h a c er t if i c a t e o f re c onc i l ia t i on s h ou ld b e p ut t o t h e Bran c h O f f i c e r i n t he la s t we ek o f e v ery mo nth . This sh ou ld be not ed in th e Cale nda r o f Retu rn s. Case s o f no nre c ei pt o r dela y in r ec ei p t of t he v ou c hers f o r aud it s ho ul d b e t ak en up promptly an d the vo uch ers ret urned to the re spect ive Accounts Officers co nce rn ed as so on as th e a udit/review is co mp le ted . 369 . Issue of objecti ons. Ob jection s a nd ob servatio ns a rising o ut of the aud it o f the e x pe nditu re rela tin g to Railway Au dit Offices sho uld be co mmu nicat ed to the Pr. Directo rs of Au dit/Acco un ts Off ice r con cerne d and re gis t ered i n t he R e gis t er o f t e s t a ud it n ot es w hi c h s ho ul d k ep t s e pa ra t el y f ro m t h a t re la t i n g t o t h e R a ilw a y t r a n s a c t i o n s . 370 . Miscellaneous. Both the auditor and the Se ction Officer/Assistant Aud it O f f i ce r / AAu O c on c erne d s ho ul d s t u dy t h e r el ev an t provi s i on s o f t he MS O (Te c h) an d t he Se c re t Me m or an dum ( c iv i l ) a nd ens u re t ha t t he co rre ct p ercen tag es an d th e prescrib ed sco pe of che ck a re carrie d ou t. Th e S. O / AAu O s ho ul d s pe c ia lly en s ur e t ha t any c ha ng es in t he e x t en t o f ch eck as a re su lt o f co rrection s to th e secret me morand um (civil) a re d uly given effe ct in respe c t of the au dit of bills of the Railway Au dit Offices. Principal Director of Audit, Central Railway 148 CHAP TER XI EXPENDITURE (WORKS) AUDIT 371 . Duties. T h is s ec t i on d ea ls wit h t h e scrutin y, generally of all ex pe nd it u re i nc u rred b y t he R a ilw ay , ot h er t ha n t ha t a udit e d i n t he e s t a b l ish me n t , Wo rk s h o p , s t o r e s a n d t ra f f i c Au d i t s e c t i o n s . 2. The p atte rn of wo rk in the Expen diture Au dit Sectio ns in th e Head Qua rte rs, d ivision al a nd construct io n Au dit Offices ge ne ra lly follows the wo rks do ne in th e corre s po ndin g in terna l ch ecking sect io n of the FA&CAO ’s o ffice a nd the subo rd inat e Acco un ts Offices. 3. The expe nd itu re au dit comprises au dit of (1) San ction s, (2) Estimate s, (3 ) Co mp letion repo rt s, (4) Co ntin gen t vo uche rs, (5 ) Cont ra cts & Te nd ers, (6 ) C a pit al a nd R ev e nu e Ac c ou nt s of re s id en t i al b ui ld i ngs, ( 7) A cc o un t s o f assisted sidings (8) Accounts of ca t er i ng d ep ar t m en t (9 ) Ac c ou nt s o f ca nte en s ru n de pa rtme nta lly (1 0) Bills fo r law ch arges (11 ) b ills for re nt a s telep hon es an d tele graph wires (1 2) pa yment to lo ca l b od ie s e t c. (1 3) re view of various registers ma in tained by the Accounts Of fices in co nn ection with differe nt acco un ts ma intain ed a bo ve. (Au X/XXIV20/Re turns d ate d 9 . 12 .88 ) 372 . Audit of Sancti ons. Wh ile au diting san c tio ns, in stru ctio ns given in para 250 of RAM shou ld b e b orne in min d. 373 . Audi t of Es ti m a te s. Check dispense d with vide (CO R's) confidential le t t e r n o . Au / C O R / C o n / 6 2/ 7 5 2 d a t e d 3 0 . 4 . 9 2 . 374 . Audit of Completion Reports. The exte nt o f au dit give n in ite m CA; iii MO I a s mo dified fro m time to time a nd th e instructio ns con t aine d in pa ra 2 8 4 -RA M a n d c h a p t e r XV I I -E s h o u ld b e seen. The audit of co mpletion re ports sho uld be don e b y th e e xp en diture (HQrs) Au dit section and by the Ex pe nd it u re Aud i t S ec t i on o f t he Div i s io na l Au dit O f f i c es d epe nd in g u pon wh eth er the completio n re po rts h ave bee n sa nction ed b y the aut horitie s und er t he a c c ou nt s c on t ro l o f t he H Q rs . o r t h e D iv i s i on s. I n ot h er w o rd s , t he c om pl et i o n r ep or t s s an c t io ne d b y au t ho ri t i es u nd er t h e a c c oun t s co nt r o l o f D AO s hou l d b e a udit e d b y t he Exp en di t ure A ud it Sec t i o n o f t he Divisio na l Aud it Offices as th e files co nta ining the fina ncial co ncurrence giv en b y t he D AO s a re av a il ab le i n D i v is i on al of f ic e s . Sim il ar l y , co m pl et i on r ep or t s s an c t io ne d b y au t ho ri t i es u nd er t h e a c c oun t s c e nt r e o f the h ead Qua rte rs Acco un ts O ffice (FA&CAO) shou ld be a udite d by the Ex pe nd it u re (HQ rs ) ac c ou nt s O f f i ce (FA &C AO ) s h ould be a ud it ed b y t he Expe nd itu re (He ad Qua rte rs) Au dit se ct io n. Th e au dit o f Co mpletion Re po rt s of w or k s u nd er t ake n by t he B ri dg e Eng i nee r s M an ma d de v ol v es in expe nd itu re Hea d Qu arte rs Audit se ctio n. 2. The list o f all th e comp le tio n rep orts sa nction ed d uring th e previou s mo nth is to be prep ared in the sele ct io n reg iste r for au dit from the Re gis t er o f C om pl et i o n R ep or t s m aintained in the Acco unts Office. 3 7 5 . C o n ti n g e nt V ou c h e r s . Cont in gen t vou che rs sh ou ld be au dited mo nth ly as pe r pe rce nta ge laid do wn in CO R' s lette r no .Au / COR/13 (4) Vol.IX/283 dated 11.4.85 (Aut hority-CO R's letter dated 11.4.85 me ntioned abo ve) 376 . Review of Contracts and Tenders. Works Contracts: The scope and exten t o f che ck of th is ite m of wo rk a re g ive n in t he secret memo ra nd um. Office Manual 149 Th e d iv i s i on o f t hi s i t e m o f wo rk b etwee n th e Exp end iture Hea d Qu arters Aud it S ec t i on a nd t he Exp en di t ure A udit Se ction o f the Divisio nal Au dit O f f i c es d ep end s u po n t h e mo ne t ar y l im i t a do pt e d/ r ev i s ed by t he R ai l wa y administration f rom time to time for con s id erat i on of t en de rs . Ac c o rd in gly , the works contra cts valued upto Rs.25 la khs each should be re viewed by t h e D iv i s i o n a l Au d i t O f f i ce r s / Au d i t O f f i c e rs/ A s s t t . Au d i t O f f ic e rs/ S e c t i o n Officer of Construction unit s and wo rks contra cts relating t o Divisions and out-sta tio ns co stin g o v er Rs.2 5 lakh s ea ch by Expe nd itu re Hea d Qu arters Aud it o r C on st ru c t io n H ea d Q ua rt e r s A udit Se c t io ns as t he c as e m ay be . Wh en ev er t hes e m on et a ry l im i t s a re r ev i s ed b y t he R a ilw ay Ad minis t r at i on t he r ev i s ed l i mi t s s ho ul d be a pp li ed a utomatically for review of contra cts by the HQrs.and Divisional/.Construction Au dit Offices. (POO 1 034 of 20. 2.77 ) 2. According to the instructio ns issue d b y th e FA&CAO a Re gister o f Co ntracts sho uld be mainta in ed by the DAO s WAOs an d SAO (C)s. The particulars o f co ntra ct s to b e au dited sh ould b e take n by vario us au dit offices from these register. In order to ensu re that the list of contra cts to be re vie wed at He adq ua rte rs is co mplete the DAu O s sh ould sen d to the Ex pe nd it u re H Q r s . Aud i t s ec t i on s oo n a f t er eve ry q ua rt e r a l is t o f c on t ra c t s for works co sting ove r Rs.25 lakh s pe rt aining to th eir divisio n tha t ma y be app ea ring in the re giste rs maint aine d in th e Division s, for instan ce, t he list of contra cts for Q.E. 30t h June should be sent by the end of Ap ril at the la t es t a nd s o o n. 3. The Exp en diture HQRs. Audit secti on s ho ul d als o en sure tha t all co ntra ct s en tered in to during th e qu arter b y a ll the d epa rt me nts of the ra ilway a re ta ken in to a ccou nt f or re view. Th e Expen ditu re HQrs. Au dit se ction should send a list of contracts re viewed b y th at sectio n du ring a qua rt er to th e resp ective Divisio na l Aud it Offices(POO 638 of 195 7) 4. Wo rks e xecu t ed on the railwa ys throu gh the ag en cy of the con t ra ctors gen erally fall un der a ny o ne of th e fo llo wing cate go rie s. a) zon al Works-su ch as o rd in ary re pa irs, maint ena nce and oth er pe tty works in a pa rticular zo ne. b) spe c ial works-su ch as construct io n o f bridge s, qu arters, fo rma t io n o f emb an km e nt s e t c . c ) sup ply of bu ilding mate rials e t c. 5. The review of co ntracts sh ould be carried out in accord ance with in stru ctions given in para 26 7 et.se q o f RAM an d Ch apt er XI of the In dian Ra ilway co de for En gine ering De pa rtme nt. 6. The fo llowing ad ditiona l po in ts sho uld a lso be bo rn e in mind . i. P la nn in g f o r t he w or k i s in v ar i ably d on e w i t h a de qu at e c ar e and insufficient detail even in the ini t i al s t a ge a nd t h e f in al s c o pe o f th e work is fully de termin ed be fore te nd ers are invite d. ii. in ca ses whe re limite d te nd ers are invited fro m co ntract ors borne on the approved list, the response is sufficient . iii. No tend er witho ut e arne st mo ne y is conside red iv. The re is no ambig uity in th e te rms of cont ra ct v. Rea s on s for vide varia t ions bet we en the rates quo ted by differen t c o n t r a c t o rs a re i n v e s t i g a t e d . v i. The re is n o un du e de lay in the tech nical exa min ation o f the te nd ers, th e co nside ra t ion of the te nd ers b y th e t end er Co mmittee Principal Director of Audit, Central Railway 150 in co mmu nicat in g th e a ccep t an ce to th e Te nd ers an d in the e xecutio n o f the ag re emen t. vii. if th e lowe st ten de r has no t be en acce pte d, t he re aso ns th erefo re a re re c or de d. viii. The ra tes given in t he a gree me nt a re th e sa me as acce pted by the T en de r C om m it t ee a nd t h at t he s e have b ee n at t e s t ed b y a resp onsib le official of t h e a c c o u n t s O f f i c e . ix. The work un der fo r th e e xe c utio n of t he wo rk is issu ed on ly a fter th e a ccept ance of the ten der. 7. If a nd whe n sanct io n to de via t io n from th e stan da rd co ndition s o f co ntract is re ceived , the co mp ete ncy sh ou ld be e x amin ed an d a n ote kep t in th e Re gister o f review of co ntracts for e xamining th e rea son s fo r and t he p ro pr ie t y of t he a m end m en t a t t he t i m e of t h e c on t ra c t . Wh ile a ud it i ng the co ntract, releva nt estimate s sh ou ld be ch ecke d simu lta ne ou sly.(C/f CA G ' s le t t er no . 23 01 -R AD / 8 -7 / 66 dat ed 2 7. 8 . 66 ) t o s ee t h at a ll t he co ntra ct s are in con f ormity with th e e s tima tes a nd also ho w the estimate s hav e b ee n f ra m ed , k e ep in g in v ie w t h e v ar io us s pe c if ic a t io ns , dra wi ng s etc. Th e Expe nditu re HQrs. Au dit Section sho uld be re spo nsible for aud itin g th e con t racts o f the cate ring de partmen ts en tered into b y the CCS. A list o f co ntract s en tered int o by CCS(cat g) sh ould b e ca lle d for fro m the FA&CAO e ve ry qu arter an d ch ecke d to th e e xten t an d in the ma nner la id down in CA G(R)'s let t e r n o . 2 3 0 -RAI / 8 -7 / 6 6 d a t e d 2 7 . 8 . 6 6 . 8. Each Section/ Divisional Office sh ould o pen a re gister to re cord the re sults of review of co ntracts co nd ucte d bo th b y the Section O f f i c e r / As s i s t a n t A u d i t O f f i c e r s a n d Gazetted Officers. This re gister sh ould be maintained in the form prescribe d in ann exu re 26 to th is Ma nu al. 377. Revi ew of Implementa ti on of Contracts T he r e vie w o f imple me nt a t io n o f c on t ra c t s c os t i ng ove r R s . 5 la k hs a nd t hose c os t i ng betwe en Rs.1 la kh a nd 5 la kh s to the e x ten t prescribe d sh ou ld be undertaken after the f inal bills of th e c o n t ra c t o r s a re p a s s e d f o r p a y m e n t . Th e review shou ld be d on e ab nito by GO in resp ect of a ll con t ra cts o v er Rs .5 lakhs and by AA uO/SO (A) in re spect of the selected contracts over Rs .1 lakh and upto Rs.5 lakhs. 2. At t he d is c r et i on o f B ra nc h O f f icer, the Contracts, reviewed by AAuO/Section Officer/Assi stan t Au dit O ffice r (A) shou ld b e cu rren t re vie wed b y him. 3. The re vie w of implemen tatio n of c ont ra cts should cover all branches viz. Civil En gine ering, mech an ica l, e le ctrical, Sto re s S&T, Op erating , Co mme rcial, Ca tering etc. a nd also zonal contra cts. The tenders and co ntra ct s en tered int o b y th e Ra ilwa y Bo ard for p urcha se of Ca st I ro n and St ee l S l eep ers ro ll i ng St o c k a nd ot h er ma terials are reviewe d by th e O ffice o f ADAI ( R ly s ) (c f p a ra 3 2 o f M O I ). T h e Pr. Dire ct ors o f Au d it wi ll ch e ck t he t end ers a nd c on t ra c t s e nt e re d in t o by t h e Ra i lw a y Ad min is t r at i o n a t HQ rs. a n d i n D i v i s io n a l o f f ic e s in re s p e c t o f s u c h Ra ilw a y B o a rd ' s c o n t a c t s , co pies of wh ich a re en do rse d to Pr.Dire ctors o f Au dit. Th e Expe nd itu re HQ Rs . Au dit S ec t ion will re vie w t h ese con t ra cts t o t he exte nt prescribed Sr/ Au d i t O f f i c e r s f o r r e v ie wi n g t h e i mp l emen t at i on asp ec t a t t he i r e nd s . 4. Since the contractors' bills are passe d at t he Divisional level, the review of imp le m ent a t i on o f c o nt r ac t s i s d on e by t he Div i s io na l Sr/ Au dit O f f i c er s . In resp ect o f works pe rt aining to BE Wo rksh ops of Man mad , the review is co nd ucte d b y the Wo rksh op , Au dit sect io n, Mat ung a. Office Manual 151 5. Met hod of selection of cont ra cts fo r review o f implemen tation a nd the ir re v ie w. i . I n t h e c a s e o f w o rks co n t ra ct s wh en F i n al Bills p as s ed i n r es p ect o f con t ra cts of ove r Rs.1 la kh are ta ken u p in th e cou rse of mon t hly au dit, t he re le v an t f il es r el at in g t o t he c o nt r ac t s m ay b e l oo k ed i n t o, w he re v er po ssib le , to see how th e co ntracts h ave be en imp le ment ed. Para (iii) be lo w in re s pec t o f c on t ra c t s prov i di ng f or w ar ra nt y / g ua ra nt e e c l ause an d/ o r m a in t en an c e p er io d a l s o i s r el ev a nt . A l i s t of al l s uc h c on t ra c t s re vie wed in th e co urse o f a udit o f fina l bills sh ou ld be mainta ined in a re gister, sep arate pa ges b eing allo tted for con t ra cts over Rs.1 lakh and u p t o R s 5 la k h s a n d co n t ra ct s o ve r Rs 5 la kh s. i i . At th e be ginn in g o f each half ye ar i.e . 1st wee k of Ap ril an d 1st wee k of Octo be r, a list sh ou ld b e p re pared fro m th e con t ractors ledg ers m ai nt a in ed in Ac c ou nt s O f f ic e o f al l t he f in al bi l ls p as s ed i n t he previou s ha lf ye ar in re spect o f co n t ra c t s of o v er Rs . 1 l ak hs a nd u pt o Rs.5 lakhs, and of over Rs. 5 la khs. All the contracts over Rs.1 lakh as re c or de d in t he r eg is t e r of c on t r ac t s of this office(which are reviewed qu arterly at prese nt) sh ou ld b e linke d up with the closu re o f con t ra ctors' le dg ers o n pa ssin g th eir fin al b ills an d suita ble en try to this ef fect mad e in t hat re gister. A list sho uld th en be prepa red o f such of th ose co ntracts o v er Rs.1 lakh f or wh ich final bills h ave bee n p assed in th e p re vio us h alf ye ar. Selection acco rd in g to th e e x ten t of au dit prescribed will b e ma de from th is list an d ta ken u p fo r review o f imp le ment ation . It sh ou ld be see n a s to how ma ny o f the co ntracts o f this ca teg ory h ave alre ad y b een revie we d du ring th e course of au dit o f final bills and the balance, if any, should be called for a n d re v ie w e d . I t is however, left to t he reviewing officer to decide whether the contra cts which h ave a lre ady b ee n reviewe d fo r implemen tatio n t th e time o f c he c k of f in al b il l s s ho ul d als o b e r e v ie we d aga i n a t t h at st age o r at a la t er s t a ge . i i i . The pa ssin g of a final bill can not be sa id to be th e fin al co mpletion of contra cts in some cases, where completio n of mainte na nce p erio d or warra nty/g ua ra nte e pe rio d is in volved . I n s u c h c a s e s t h e re v ie w s h o u ld no t be h el d u p, b ut s uc h c as e s s h ou ld be re v ie w ed a ga in af t e r e x piry o f the mainte na nce/wa rran ty gu aran tee pe riod . The re may a lso b e ca se s where du e to dispu t es ra ise d b y con t ractors, wo rks ma y be ab an do ned by them without comple tion and in such cases final bills as such ma y not have been passed. Such case s wh ere fina l b ills h ave n ot b een pa ssed eve n afte r on e yea r fro m th e da te of ph ysica l comp le tio n of the work o r ab and on me nt of th e wo rk sho uld also b e sp ecially reviewe d for imp le ment ation of cont ra cts trea tin g t he la st bill passed as final bill, if the case s are d ue f or re vie w as p er prescribed monetary limits. I n such cases it should be seen that claims for recovery of the extra cost in curred in complet in g the left o ver work, if a ny, are prefe rred correctly. i v. In so fa r as Con stru ction Au dit (HQ) Sect io n an d Constru ctio n Au dit Se ctio ns a t ou tstat io ns a re con c erne d p ro c ed ure laid do wn in (i) and (iii) a bo v e shou ld b e ob served, bu t th e re vie w sh ould be co nd ucted du ring the cou rse of lo cal insp ection s of Execut ive Offices a nd / or du ring the review of Ma jor Wo rks in Execu t ive Off ice s. Principal Director of Audit, Central Railway 152 6. Ca tering Con t ra cts. Th e re vie w of imp le men tation o f th ese con t ra cts sh ou ld be do ne by th e e x pe nditu re Hea d Qu arters Au dit se ct io n. 7. No ha rd an d fast ru le can be laid do wn in reg ard to t he exa ct scop e o f re view. The review should cover all aspects of the contra ct an d it sh ou ld be sp ecifically seen whe t he r t he obj e ct ive s f o r wh ich a co n t ra ct wa s ent e r ed i nt o h ad b ee n ach ie v ed . F o llowi ng a re s om e of t h e po i nt s t o be se en du ring th e review o f imp le ment ation of co ntracts. i. Whe re v er h ighe r rate s are ag re ed t o for ea rlier co mpletion of work th e stipu la t ed d ate of co mpletion is ad he re d to exte nsion to the c on t r ac t s p er i od are n ot s an c t io ne d a s a m at t e r of c o urs e and pe na lt y if le vie d o r e xpe nditu re is re covere d whe ne ver du e. ii. U ni l at e ra l e x t en s io n t o t h e c on t r ac t p er io d i s n ot g iv e n b y t he Railway Ad min istrat io n e ven t hou gh the terms of co ntract provide for it withou t sp ecific con sent /re qu est from t he con t ra ctor. Wh ene ver ne w i t ems o r ad dit i on al q uan t i t ie s a re b ro ug ht i n t h e r at es a re r ea so na bl e c o m pare d t o t he orig i nal c o nt r ac t r at es . iii. I f m at e r ia ls o r e qu ip me nt a re i s s ued t o t h e c o nt r ac t o r t h e r at e s f or th em are co rre ct ly fixed an d reco vered . iv. In t he ca se of wo rks of a n urg ent n atu re , it sh ou ld be sp ecially seen th at t here is no d elay in e x ecut in g forma l ag reeme nts and con seq ue nt un an ticip ate d be ne fits accruing t o the con t ra ctor as a r es ul t of l on ger c om pl et i o n peri od a nd w he re h i ghe r r at e s a re acce pte d for earlie r comp le tion th ere is no f ailu re o n the part of the Railway Ad ministration to fu lf il it s p art of th e co ntractu al ob lig ation s. v . In cre ase an d de cre ase in qu an titie s. I t sh ou ld b e spe cif ica lly seen th at increase or d ecrea se in qu an tit ie s doe s not h ave the e ffect o f ren dering th e a ccept ed te nd er le ss favo urable t han an y o f the r ej ec t e d t en ders . I t m ay a l s o h ap pe n t ha t h ig h ra t es m us t hav e be en a ccept ed for certain min or items bu t th e qu ant ities of such items are in cre ased b eyo nd rea sona ble limit in vo lvin g hea vy pa yment s. Even th ou gh u nd er t he sta nd ard con dition o f con t ra cts, t h e c o nt r ac t o r i s r eq ui r ed t o d o in c re as e d q ua nt i t i es o f w or k s uc h increa ses sho uld be re ason ab le . Re ason ab le increase in q ua ntity ha s be en fixe d to b e 1 5% to 25% b y the Railwa y Boa rd in consultat ion with the Ministry of Law. vi. Cases of upward classification of e arthwo rk resu ltin g in su bsta ntial ov e rp ay m e nt s a nd on ac c ou nt p ay m e nt s i n e x c es s o f t h e v a lu e o f work do ne also req uire sp ecial exa min ation . vii.I n resp ect of zon al wo rks it sh ou ld b e seen t hat th ere is no h olding ba c k of w or k o rd er s , hu rrie d i s s ue o f t oo m a ny w or k o rd er s de pe nd in g u po n the following yea rs rate s du ring the last mon t hs o f t h e y e a r t o f a v o u r t h e co n t ra ct o r. v i ii. C as e s o f a rb i t ra t i on an d c ou rt c as e s a r is i ng o ut of dis p ut e i n t he f i na lis at io n o f t he c on t ra c t s s ho ul d b e r ev i e we d. 8. Th e reg iste r of revie w of impleme nta tio n o f Co ntracts sh ou ld be ma in taine d in th e form prescribed in An nexu re 2 7. (Auth ority: POO 1 055 dat e d 2 2. 2 . 79 , Au / C O R / Se c re t / 1/ 244 5 d at e d 1 2/ 1 6. 4 . 79 & P O O 1 07 4 o f 11.1 2.8 0) 378 . Vouchers relati ng to Grant-in-a id and contribution to Schools. Select io n for au dit sho uld b e take n from the Au6 Registe rs mainta ined in the Acco unt s Office. The ch eck o f th ese vou c hers sh ou ld be co nd ucted Office Manual 153 wit h r ef er en ce t o t h e r ul es on t he s ub je c t c ont aine d i n t he I nd ia n r ai l wa y Es t ab l is h me nt c o de a nd p ar as 2 068 t o 2 072 G . I ns t ru c t io ns g iv e n i n pa ra s 233 of RAM and 28 1 t o 29 0 o f MSO (T) sho uld b e b orne in min d. 379 . Chec k of pa ss es and PTOs iss ued by the expe nditure and ca tering secti on of the FA & CAO 's office . Pa s s es a nd PTO s i s s ue d b y t he Expe nd itu re an d Ca tering Sect io ns o f th e FA&CAO' s o ffice sh ou ld be ch ecke d b y the expe nd itu re he ad qu arters Au dit Se ctio n in Fe brua ry e very ye ar. 380 . Au d i t o f Co n t r a c to r s B i l l s . The aud it o f Co ntracto rs Bills(on ac c ou nt a s w el l a s f i na l) i s t o b e c on du c t ed as p er t he pe rc e nt a ge o f c he c k la id down in the CAG's Office letter No . 165-RAII-20-4/84 dated 26.4 . 19 85 . In respe ct of co ntracts o v er R s . 1 l ak h wh en f in al bi l ls a re se lecte d for au dit, the rele vant file relating to the con t ra cts sh ou ld also be re v ie w ed t o s ee ho w t he c on t ra c t s ha v e b ee n i m plemen t ed . 2. Th e se le ctio n o f fina l bills fo r a ud it sho uld b e ta ken from Au 6 Re gister ma in t a i n e d in A cc o u n t s o f f ic e . A r e c o rd o f f i n a l b i lls a n d o n a c c o u n t b i lls aud i t ed s ho ul d b e k ept i n S el ec t i on R eg i st er. C AG of I nd ia h as a ls o prescrib ed an a ddition al ch eck of ru nnin g o r on a ccou nt b ills in respe c t o f big cont ra ct works in progress, costing over Rs. 50 la khs mainly to ensure that the se works come un de r re gul ar control audit check which will su pp le men t t he ch eck du ring in spe ctio n. The proce dure o f che ck wo uld be to list out all the works contracts cost in g ove r Rs. 50 lakh s wh ich are in progre ss a nd t o s e le c t on e o r t w o on ac c ou nt b i lls i n r es p ec t o f ea c h o f t he abo ve wo rks for ch eck du ring th e yea r. Th is che ck is in ad dition to the aud i t o f a ll p ai d v ou c he rs in c lu di ng o n ac c o unt b il l s p as s ed d ur in g t he mo nt h s el e ct ed f or a ud it in t h e c o urs e o f m a jo r wo rk s (C/ f pa ra 6 4 o f Secret Memo ra ndu m).(CAG' s lette r n o. 18 62-1 77-RAI/8 -1 0/7 1 da ted 20.5 . 72 ) 3. De tailed instructio ns given in pa ra s 2 70 to 2 72 of th e RAM sho uld be follo wed wh ile aud itin g co ntracto r’s b ills. Check of cont ra ctor’s bills in c lu d e s c h e c k o f c o n t r a ct o r’ s l e d g e r a lso . 381 . Meas ureme nt Books . Th e mea s ureme nt bo oks mainta ined in division al o ffice of the Railway Administration sh ould be revie we d du ring in spect io ns. Th e in stru ctions con t ai ne d in para 27 4 of th e RAM sho uld be follo wed wh ile re viewin g t hese bo oks. 382 . Regis te r of Work s a nd Re ve nue Alloca tion Re gi sters . a. Tracing po st in g from vo uche rs b. Reconciliation with General Books c . Ge ne ra l re vie w of th e Reg isters. I ns t r uc t i on s c o nt a in ed in p ar a 28 0 o f R A M s h ould b e f o llowe d w hi le co nd ucting the review of the re gister. 383 . R ev i ew of S us p ens e R eg i s te r s. (See para s 310 , e t seq , 61 0 e t seq and pa ra s 38 1 RAM.) Misce llan eo us Advan ces. Adva nces p aid to L and Ac qu is i t i on O f f i c er s , 90 % a dv an c e p ai d t o c o n t ra c t o r s f o r s u p p ly o f eng inee rin g ma terials, ad va nce p aymen ts to contractors for works etc. co me und er Miscellan eou s Advan ce an d are de alt with in Expe nd itu re Sect io n. 2. De posit Miscella ne ou s. Ea rnest mo ne y an d Secu rity De posits o f co ntra ct ors an d d ep osits mad e b y ou t s id e r s f o r d e p o s i t w o rk s e t c . c o me Principal Director of Audit, Central Railway 154 und er t h is c a t eg or y . T he s e r eg i s t ers s ho ul d b e re v ie we d y earl y on t he line s i nd ic a t ed i n p ar as 1 61 1, 1 61 6 A 1 and p ar a 3 81 of RA M . T h e h al f ye arly reviews for May an d Novemb er su bmit ted to th e Ra ilway Bo ard ma y be r ef er re d t o duri ng t he r e v ie w o f t he r egis t e rs . I n t he c as e of d epo s i t f or wo rk s , w o rk s r e g is t e rs f or De p o s it W o rks sh ould be co nn ecte d. It sh ou ld als o b e s een t h at t he b al an ce s h av e be en r ec o nci le d w it h t h e G en er al Books. 384 . Review of Productivity of Outl ay. T he R ai lw a y Ad min is t r at io n a re re quired t o con duct p ro du ctivity test in resp ect of co mplete d ne w line s and wo rks as contemplated in paras 248 et seq of the Financial code Vol.I. The re vie w is in ten ded o nly to se rve a s a ch eck to se e th at atlea st the estima ted retu rn is re alise d. Th is re vie w sh ould be d on e as p er in stru ctions cont aine d in pa ra 28 4 of RAM an d p ara 52 0 o f MSO (T). The in stru ctions co nta ined in CAG ' s le tter no. 3544-444/RAI / 8 -4 / 7 0 d a t e d 5.9. 70 shou ld a lso be bo rn e in mind . Resu lts of th e review sh ou ld be re ported to the CAG (R). 2. Th e particulars o f se le cted works fo r such test by Ra ilwa y Bo ard and GM a re rece ive d in th e exp en diture Hea d qu arters Aud it Se ction. These sh ou ld b e c o m mu ni c at e d t o D i v i s io na l Audit Offices or Branch Offices in re s p e c t o f w o r k s f a ll i n g wit h in t h e i r s c o p e o f a u d it . 3. A re gister in th e form p re scrib ed in the a nn exure 2 8 of this Ma nu al sh ou ld be ma inta in ed by the Exp end iture Hea d Qu arter Au dit Se ction and Div i s io n a l A u d i t O f f ic e s / o t h e r Se ct i on s s h owi ng t he p ro gr es s of t he t e s t s co nd ucte d by the Administration . In th is reg iste r will be inco rp orate d all the items no ted in th e reg iste r main taine d by th e Acco unts Of fice s wh ich sh ou ld be reviewe d qu arterly (Ap ril, July, Octob er and Jan uary) b y Expe nd itu re Hea d Q uarte rs Audit Section . This sh ould be no ted in the Sectio n Re gister to watch th e co mplia nce . Th e re gister main taine d b y He ad Qua rt ers and oth er au diting section s shou ld b e pu t u pto the Branch Officer on th e 1 5th of th e 2n d mo nth f ollo win g th e q uarte r a nd t he Re gister of Hea d Q uarte rs Audit Section shou ld be pu t up to t he Pr.Directo r o f Au dit through Dy .Director once in a half year. 4. Th e Divisiona l Au dit an d oth er se ctio ns con cerne d afte r con du ctin g the re v ie w s h ou ld s en d t h eir r ep or t s t o Expe nd it u re H ea d Q u art er s Au dit Section for submission of a report to the C&AG of India. 385 . Rev i ew of Major Work s. This is de alt with in the Ch ap ter on `In spe ct io ns' . 386 . Si di ng Agreement and Accounts of sidings. The Re gisters ma in t ai ne d i n t he Ac c ou nt s o f f i c e s h ou ld be re v ie w ed y ea rl y . T h e d et a ils of check to be ca rried o ut given in p ara 28 5 of the RAM sho uld be stu died befo re the review is co ndu cted . It sh ou ld a lso be se en th at the Agree ment s in the stand ard fo rm embo dying a ll the co nd it io ns me ntio ned in the e x tan t ru les an d o rd ers exist for all sid in gs a nd th at th ere is no dela y in t he e x ecu t io n o f old ag reeme nts, th e te rms may be modified in the ligh t of prese nt da y co nd itio ns to the a dva nta ge o f t he railwa y. A d eta iled re vie w of a select ed numb er of the existing ag re emen ts sho uld be carried out. The review is ca rried ou t at Division al leve l only as n o re cords a re ma in tained at Head Quarters level. 2. T he f ol lo w in g po i nt s s ho ul d a ls o be b or ne i n m i nd in c he ck i n g t he Accounts of sidings: Office Manual 155 i. An up -to-da te listin g o f siding s is sent by th e DENs to th e DAOs in April each year. ii. Rate of recovery of intere st ch arges is revised every five years ta kin g in to acco un t th e prese nt da y co st o f t he asse ts borne b y th e Railway. 3. A list o f all sidin gs pe rta ining t o ea ch divisio n sh ould be fu rn ished in April every ye ar by Divisio na l Aud it Offices to Traffic Audit Sect io n to ens u re t h at t h e s t a t eme nt o f s i ding c harg es o f al l s id in gs co m e u nd er t he purview of au dit with ou t omissio n. 4. Cases of large a mou nts ou tstan ding fo r reco ve ry from sid ing o wn ers sh ou ld be spe cia lly reviewed . Min ute s of th e Division al Railwa y Ma na ge r’s me eting wit h Division al Off ice rs ma y be re vie wed with a dvan t ag e in this co nn ection . 387. Objectionable item Register (Quarterly). A general review of the register should be conducted every quarter. Paras 350 to 374 of Indian Railway code for Accounts Department and para 283 of RAM should be referred to before conducting the review. It should be seen especially that objections raised by Audit have also been noted in the register, and in the case of items where detailed estimates are wanting it should be seen whether necessary action is taken to remove the objection without delay. 2. Sta t eme nt of u nsa nction ed expe nd itu re An ne xu re A to Ap propriation Accou nts. Th e state me nts of unsa nction ed e xpen diture prep ared b y the Ra ilway Ad min istratio n a t h ea dqu arte rs and Division al o ffices as p er in stru ctions g ive n in pa ra 4 41 FI a re re ceived in th e respe ctive au dit se ction s and Division al Au dit Offi ces. Th ese state ment s sh ou ld be ch ecke d with re feren c e to the entries in the o bject io na ble time re gisters, wo rks re gisters, estima tes etc. and the fina l acce pta nce of the sta t emen ts alon gwit h rema rks if an y sho uld be intimate d t o Expe nditu re (HQ) section . Th e con s olid ate d state men t fo r the ra ilway as a wh ole received f ro m the FA&CAO sh ou ld be checke d b y t he HQ rs. Au dit Se ctio n.(Se e Para 40 5 o f RA M also). 3. State me nt o f e x pen ditu re on Ope n L ine Wo rks Ann exure D. Similarly, Ann ex u re D s t at e me nt o f exp en di t ure o n m a jo r o pe n l i ne wo r ks sh ou ld be ch ecke d by se ctions/d ivision s an d remarks in tima ted to Books & Bud ge t He ad qu arters Aud it Se ctio n wh ich sh ould che ck th e co nso lida t ed st at e me nt . 388 . La n d R e g i ster s ( Ye ar l y ). A g ene ral review of th e registe r mainta ined sh o u ld b e c o n d u c t e d y e a rl y . P ro v isi o n s contained in Chapters VIII to X of the In dian Ra ilways Cod e fo r th e En gine erin g Dep artmen t a nd 2 82 of the RAM shou ld b e bo rne in min d while reviewing the registe rs. 2. No la nd reg ist er is ma in tain ed b y X HQrs. section o f FA&CAO ' s o ffice and con s eq ue ntly no au dit review is co ndu cted in th is re spe ct by X HQrs. Aud it S ec t i on . T h e c he c k o f la nd r eg isters is exercised in the Divisional Audit Offices. 389 . Register of Buildings. R egis t e r of Bu ild in gs ma i nt a in ed i n t he Ac c ou nt s O f f i c e s h ou ld be g en er al ly r ev i ewe d a t t he t i m e o f c he ck o f Ca pital an d Reven ue Accoun ts of Reside ntial Building s . It sho uld be seen during th e Aud it of comp le tion re po rt s tha t t he registe r is mainta ined upto da t e. Principal Director of Audit, Central Railway 156 390 . Law Charges. Wh ile scru t in isin g sa nction s to the p aymen t of law ch arge s, in st ru ctio ns con t aine d in p ara 27 7 of the RAM sho uld be refe rred to. It should be seen that t he c ha rg es p ai d are w i t h in t he m ax i m um f i x ed by Ra ilway Bo ard. Railway Administrati on is send in g to Railway Bo ard in April ea ch year an an nu al sta t eme nt showing t he en ga ge me nt of lawyers on high fees in Government cases. Th i s s t a t eme nt s ho ul d b e c h ec k ed in this office (HQrs) t o ensure that all cases have been included in this st atement with re ference to sanction s re ceived in this office and the accounts office record s. 391 . Review of Court cases and Arbitr ation Awards. Scrutiny of co urt ca ses finally settled in various cou rt s a ga in s t r ai lw a y s re la t in g t o Eng in ee ring Dep artment shou ld be carrie d o ut b y the Expe nd it ure HQrs. Aud it Se c t io n t he s e c a s es a re d ealt wit h b y t he H O D s a nd w he re p ay m en t of le gal charge s is a rra nge d throu gh th e FA&CAO Division alAu dit o ffice s (E xp enditure Audit section) should similarly review of court cases if they are dea lt with by the DSs an d payme nt of le ga l cha rg es is arran ged throu gh th e DAOs. The se cases sh ould b e re viewed t o the e xten t la id down . All a rb i t ra t io n c a s es s ho ul d b e r ev i ewe d i n a udit . I m p or t an t re s ul t s of b oth the reviews sh ou ld be rep orted to the Pr.Dire ct or of Au dit th ro ugh CO R Section. (P OOs 646 of 14.8.57 , 8 2 1 o f 1 0 . 3 . 6 3 Au / CO R/ Co n . 9 / I V dat e d 2 5. 2 . 66 an d 9 58 of 1 8. 7 . 70 ). 392 . B i l l s for r e nt o f T e l e g r a p h W i r e s . Pa ra s 27 9 of the RAM may be se en . T he bi l ls a re ad ju s t ed t hr ou gh J ourna l v ouc h er s . W hi l e a dj us t i ng t he J. V. s i t s ho ul d b e s ee n t ha t a b il l h as b ee n ac c ep t ed b y t h e de part m en t co nce rn ed r e gardin g m il ea ge o f w ir es a nd t h at t h e r at e s a nd c al c ulat i on s are co rrect. 393 . R ecov er y o f co n se r va n cy c h ar g es i n r es pe ct o f q u ar t er s al l o t t ed to G o ve r n m en t R a i l w ay P o l i ce f r o m the S ta te G ov er n m e n ts . The existin g arra ng emen ts for reco very o f conservancy charges in respect of qua rt er o ccupie d by Gove rn me nt Ra ilway Police is that the recovery st ate me nts a re p repa re d b y th e D.M.Os con cerne d a nd co nsolida t ed by the CMO . T h es e a re t he n s en t t o F A& CA O ( X) for ch ecking the ra tes et c. Bills for th e ch arge s recove ra ble are ultima tely p re f erred by the Traffic Accounts Branch and the act ual reco ve ry is a l so wa t ch e d b y t h e m . 2. The stat emen ts pre pared b y th e CMO on the b asis o f DMO' s retu rn s and se nt to FA&CAO(X) sh ou ld b e che cked b y X (HQ) Audit ha lf ye arly. It sh ou ld also b e see n tha t the checke d sta t emen ts forwarde d by FA&CAO(X) to th e Tra ffic Acco unts Bran ch a re a cknowled ge d b y th e la tter. The Au dit Ch ecks should be carried out by respective DAuO s (PO O 927 dated 11.4 . 68 ) 3 . A t t h e t im e o f t h e A u d it I n sp e ct i o n o f th e DMO s off ice , th e re gister o f bui l di ng m a in t ai ne d in t he D EN ' s of f i c e s ho ul d b e c ons u l t ed t o s e e t he d e t a i ls o f b u i ld in g s o c c u p i e d b y t h e G R P s t a f f . 394. Audit of Block Account. T he au dit w i ll b e d one at v ar io us s t a ge s v iz . i. It sh ould be se en ge ne ra lly th at in th e case of all e s tima tes charge ab le t o ( a) D F (b ) D R F ( c ) O LW (Re v ) t h at p er c en t ag e o f i mp ro v eme nt i s shown th erein. The p ercen tag es a re d ecide d by th e tech nical aut horities bu t it sho uld b e see n tha t prima f acie the y are no t op en to any obje ct io n. Office Manual 157 ii. Du rin g rev iew of wo rk s re gist er. I t sho uld be see n t hat the p ercen tage s shown in the wo rks register with t he remarks "for block acco unts". After t he c l os e o f Ma rc h a c c ou nt s t he e x pe nd it u re t o be s h own i n t he B l oc k Ac c ou nt i s w o rk e d ou t on t h e ba s is o f t he a c t ua l e xp en di t ure o n t he wo rk d ur in g t h e y ea r a nd p er c en t ag e f o r Bloc k A c c oun t s ho w n i n t he wo rks Re gister. These acco un ts sho u ld be test checked t o ensure that t he arit h m et i c al c al c u la t io ns a re c or r ec t . 2. The expe nd itu re to b e sho wn in the Block Acco unt a s pe r th e works re gister is ca rried ove r in th e su mma ry reg ist er(p in k Bo ok summary) for each gran t and the tota l e x pe nditu re to b e sho wn in th e b lo ck Accou nt is wo rk e d ou t t he re in . T he Co r re c t ne ss o f c a rry i ng o v er of t he e x pe nd it u re f ro m t h e w or k s r egis t e r a nd t ot a ll i ng i n t he s u m ma ry r eg i s t er s hou l d be test checked. 3. Th e fin al co mpila t ion of th e Block Account by the Accounts Office is to be ch ecked by Bo oking section o f this of fice fro m t he a ud ite d a c co un ts re ceived fro m the Sect io ns a nd division s con cerne d. 395 . Subsidy to Co-operative Societies. A s p er R a ilw ay Boa r d' s o rd er s the Co-op erative so cie t ies f orme d by th e Ra ilway employe es are e lig ib le f or s ub s id y f or t h e f i rs t t hr ee y ea rs o f t h eir f or ma t i on un der c e rt a in t er m s and co ndition s. The sub s id ie s p aid are to be che cked by this o ffice. The payme nts ma de sho uld be asce rta in ed from t he pa y ord ers issued a nd the Au6 R eg i st er. I t s h ould be s e en w hi l e a ud it in g t hat t h e p ay m en t s a re ma de acco rd in g to th e rule s an d o rd ers issue d b y th e Ra ilway Boa rd from t im e t o t im e . (R. B . ' s l e t t e r n o . 63(E)/Co-op/40-2 6 dated 13. 10.64(Coop)9/ 6 d ated 24 .4.6 5 a nd 65 /E(Co-op )/1 44 3 da ted 10 .1.6 6) 2. Sub s id ie s to Cant een s maint aine d sta t uto rily u nde r the pro vision of the Fa ctories Act 1 948 . A p ortio n of Expe nd itu re incu rre d in the Staff cant een is m et by R a ilw ay Ad min is t r at io n. T he a ud it i n r es p ect of p ay m en t m ade by the Ra ilway Administra tion is to be carried out in accord ance wit h the in stru ctions conta ined in Ra ilway Boa rd ' s lette r no. E(W)62 CNI-7 da ted 20.4 . 63 an d n o.E(W)65 CNI/1 4 d ate d 1 7.5 .66 . 3. In re sp ect o f p aymen t ma de b y the Railway Ad ministratio n for expe nd itu re in curred o n can t ee n items of n on statu tory can t ee ns the au dit is req uired to be con duct ed in a ccordan ce with instruction s con t ain ed in Ra ilway Boa rd ' s lette r n o.E(0 63 CNI -2 of 9.7. 63, E(w)63 CN 1-12 da ted 31.1 64 , E(W)6 4 CN 1-17 da ted 23 /28 -1 2-67 , E(W)65 CN 1-5 d ate d 7 . 8.6 5. 396 . Manufacturing Account. The a udit of t hese a ccoun ts sh ou ld be co nd ucte d a s pe r instru ctio ns co nta in ed in pa ra 34 8 RAM. 2. In spectio n of PFWCD KYN and FBWP CEN is to b e co nd ucte d by W&S Aud it Ma t un ga onc e i n t h re e y ea rs . (A u t h o r it y : Au/ C O R/ 1 5 / 8 1 - 8 2 / I n s p . progra mme/ 632 2 d ate d 21.4 . 19 81 ) 397 . Revi ew of Hospitality Fund operate d by GM/CPRO & Ma rketing & Sale s O ffice r. A ge neral review o f th e a ccou nts o f th e Hosp italit y Fund ope ra ted by the GM/CPRO an d Marketing & Sa le s Officer sho uld be co nd ucte d e very year to see tha t the exp end iture h as b een incu rred for othe r rest rictions impo sed b y the Ra ilway Bo ard fo r incu rring e x pe nd itu re from this fund have been observed . (A DA I ' s e n d t t . No . R AI / A7 - 1 1 / 5 6 d a t e d 11.4 . 57 ) Principal Director of Audit, Central Railway 158 398 . Audit of Pay Orders and othe r Miscellaneous vouchers not fa lling under any other cate gory. Bills includ ing bills fo r pu rch ase of med icine s are au dite d eve ry mo nth afte r ta kin g se le ctions a s laid d own in ite m CA IV21 B of Secret Me morand um. 2. Audit o f Imprest Vo uche rs. Vou c he rs p erta in in g to Imprest of Ca shier ma y be classified un de r Item CA-IV21 of App en dix to Se cre t Me mo ra nd um of Inst ru ctio ns rega rding e xten t of A udit(Rly.Aud it) an d Se lection and au dit don e a ccording ly.(PO O 11 04 d ate d 25 .5. 85) ad vice sen t to th is of fice . Vou che rs relat in g to X HQrs. are aud ited by th is se ction Co nso lida t ed ce r t if i c a t e i s f u rn ish ed by t hi s s ec t io n t o A , G , C in c o r p o ra t i n g t h e t o t a l expe nd itu re bo oke d. 3 9 9 . B i l l s f o r F a m i l y Pl a nn i n g. As per Co mptroller & Auditor General's le tter n o.1 853 -Te c h.Admn. 1/4 60-6 4 d ate d 8 . 7.6 4 this off ice is requ ire d to furnish au dit certif ica t e in sup port of e xpen ditu re b oo ked b y AGCR a ga in s t the gran t o f Go vernmen t o f In dia, Ministry of Hea lth a fter ca rryin g out the nece ssary test-che ck. The vouch ers re lating to d ivision al au dit office s and othe r h ea d qu arters u nits are che cked b y them an d ad vice sent to this office. Vo u c h e r s r e la t in g t o X H Q rs. a re au dit ed b y t hi s s ec t i on . Co ns o li da t ed ce r t if i c at e is f u rn ish ed b y this sectio n to AGCR incorp orating the tota l e x pe nd itu re bo oke d. 400 . Canteen Accounts. i. Purc hase Bills. Sele ctio n shou ld b e o bta ined fro m th e Au 6 reg iste r or fro m p urcha se re gister ma intain ed b y Accoun ts office fo r lo cal pu rch ase for Can t ee n a nd ca tering De pa rt me nt, if it is no t possible t o disting uish can t ee n bills fro m Au 6 reg ist er. Wh ile a ud itin g the bills th e in stru ctions con t aine d in pa ra 2 98 of the RAM sh ould be refe rred to. ii. Cash Remittance notes. The remittance notes for one month in a year for each canteen are to be checked by the divisional office, Head Quarters office depending upon the maintenance of the accounts by Divisional Accounts Office or by the Headquarters Accounts office. In respect of canteens in Mumbai Division, the cash remittance notes should be checked with the daily remittance notes of stations through which the cash is remitted, available in Traffic Accounts Branch and the total amount for the month verified from the Station Balance Sheet. In respect of canteens in other than Mumbai Division, a list of daily remittances should be sent to AAuO (T) Secunderabad for arranging the check of the canteen remittances with station remittances and the Station Balance Sheet. iii. Can t ee n Re turns an d Ch eck o f P&l Accoun t. Ca nte en retu rn s to be exten t p re scrib ed sho uld be che cked in a ye ar fo r ea ch can t ee n. The re turn fo r th e p erio d se le cted sho uld b e che cked in de tail ope ning bala nces with th e closing ba la nce s of th e previo us mon t h, rece ip ts with st at e me nt o f pu rc h as e s an d t r an s f ers in w ar d, a nd is s u e w i t h s t at e me nt o f tra nsfe r ou tward an d issu es to kitche n. Th e correctn ess of the boo k bala nc e w o rk e d ou t s ho ul d t h en b e c h ec k ed . I t s ho ul d a ls o be s een t ha t there are no apprecia ble, excesses or sh o rt a g e s i n ra w m a t e ria ls. Af t e r the ch eck o f ma in retu rn the Profit an d L oss Acco un t of th e ca nte en sh ou ld be c he c k ed i n de t ai l . T he c o rre ct nes s of t h e f ig ur es s ho w n t he re in s h ou ld be ve rified from the main retu rn. It sh ou ld be see n th at the ove rh ead ch arge s a nd ot h er m i s c el la ne ou s exp en di t ure have b ee n t ak en i nt o ac c ou nt w h ile a rr i v in g a t t he ne t prof i t o r l os s . I f t he l os s i s ap preci ab le and con t inuo us, t he p ropriety o f runn ing t he ca nte en may b e ta ken up. Office Manual 159 3. The re are 25 ca nte ens at prese nt ru n dep artmen tally un de r the co ntrol of APO . T he A c c oun t s o f t he se ca nt e en s a re a ud it e d by t he Sectio ns/Division s mentio ned in b ra cket a ga in st the se ca nte ens as un de r: Name o f th e ca nte en Sr. no . 1. S& T Wo rkshop Byculla Canteen(ST)(W&S Audit,Parel) 2. Pa re l Wo rk s h o p -do3. EL W Wo rksh op , Bh usawa l (PoH Bh usa wa l) 4. Ku rd uwadi Wo rkshop (DAuO/ Solapur) 5. En gg.Workshop,Manmad (W&S Audit-Matunga) 6. Ku rla St a f f C a n t e e n ( DA u O / BB) 7. Ka ly an Staff Ca nteen (-do-) 8. T M W N a s ik R o a d St a f f (W& S Au d i t Pa r e l ) 9. C R W N i s h a t p u ra St a f f ( D Au O / Bh o p a l) 10 . R SK Sit ho ul i Ca nt e en (W&S Au dit J ha ns i ) 11 . ZTS Bhusawal Canteen (NST)(DAuO/Bhusawal) 12 . Loco Shed, Bina (NST)(DAuO/Jhansi) 13 . D R M' s O f f i ce , N a g p u r ( D Au O / N a g p u r) 14 . Die sel Sh ed , NKJ (DAu O /Jab alpu r) 1 5 . D R M' s o f f i c e , J a b a lp u r ( -d o - ) 16 . D R M's O f f i ce , So l a p u r (DAu O / So l a p u r) 17. Loco Shed, Dau nd ( -d o- _) 1 8 . M C ST St a f f C a n t e e n (DAu O / B B) 19 . L o n a v la (-d o -) 20. Igatpuri ( -d o - ) 21 . Pu n e ( d o -) 22 . W a d i B u n d e r ( -d o - ) 2 3 . D C O S(G ) C R d (W&S Au d i t Pa re l ) 24 . CWM MTN & Jh an si (W&S Au dit Jha nsi) 25 . SP S B ycu lla (ca nt e en ) (W&S Aud it Parel) 4. Ca nt e en I n s pe ct io n. T h e i n s pect io n of the ca ntee ns ru n de pa rtme nta lly is r equ i re d t o b e c ar r ie d ou t ev e ry y ea r in accordance with the instructions co nta ined in CAG (Rlys)' s le tter no. A-8-S/52 da ted 2 6.3 .53 . The st ock ve rificat io n shee ts re la tin g to can t ee ns are re qu ired t o be au dited b y W&S unit at Pare l with th e no rmal ha lf yea rly/yea rly re vie w o f six sh ee ts o f o t h e r d e p o t s . (S AX/ g s / c a n t . Vo l . I I d a t e d 9 . 1 2 . 6 7 ) 401 . Capi ta l and Re venue Accounts of Residential Buildings. Each Divisio na l Acco unts off ice r is re qu ired to su bmit to FA&CAO a Ca pital and Re ven ue accou nt of Re sid en t ia l building s situa t ed in th e Division (includ in g th e qu arters allotte d to d ep artment s n ot coming un der the Divisio na l sche me a nd Qua rters of op en line allotte d to constru ct io n staff) for co nsolida t io n an d su bmissio n to the Railway boa rd (vide pa ra 1 97 7-E). Th e d ue d ate fo r su bmissio n of th is a ccou nt by th e divisio na l Accoun ts office is fixed by the FA&CAO . 2. Every year XHQ section should intimate the Divisiona l A u d it O f f i c e s t h e due da te fixed by FA&CAO fo r su bmissio n of these acco un ts. These Principal Director of Audit, Central Railway 160 accou nts are re ceived by the resp ecti ve d i vi sio n a l Au d i t o f f i ce s f ro m t h e Divisional Account s offices for certific ation before submission to FA&CAO. Th ese sh ou ld b e che cked by th e Divisiona l Audit Offices a nd th e ad vice o f audit with comments, if any, be sent t o HQ X se ct i o n f o r ch e ckin g t h e co nso lid ate d acco unt s fo r th e en tire Ra ilway. Th e instruction s conta ined in para 259 of the RAM sho uld b e fo llowe d in ch ecking the acco un ts. 3. The Ca pital an d Reve nu e Acco un ts o f Reside ntial Bu ildin gs are ch ecked with refe re nce to t he stat emen t rece ive d from the Railway Ad ministration duly coun tersign ed by the Wo rks Accou nta nt on b eh alf o f the Accoun ts De pa rtme nt. Test che c k is ap plied to the ext ent prescribed a nd fo r this purpo se any one d epa rtme nt viz. En gine erin g, Commercia l or Op erating etc. is sele cted for detailed check. Th e numb er of qu arters un de r each type, stan dard re nt, p ro f orma reco ve rie s etc. a re che cked with re feren c e to re nt b ills o f th at, p articular d epa rtme nt ma inta in ed by the Railwa y Administration and the previou s year' s state ment . I t shou ld be seen tha t the t ota l co st of th e bu ild in gs h as be en corre ctly wo rke d o ut with ref erence to the Re gister o f Building s . To tal a moun t of rent co llecte d sho uld be ch ecke d with th e re nt bills. Add itio ns t o Q u art er s a s p er c o m pl et i on Re po rt s p as s e d i n t he y ea r a r e t r ac e d i n t he R en t R eg is t e rs t o t h e e x t en t pos s i ble t o s ee t h at t he a dd it i o ns a r e c o rrect ly re f l ect ed i n t h e ma in Ca pit al & R ev en ue Ac c ou nt s s t at e me nt . 402 . Revi ew of the w ork ing of the Acc o unts Department (s ee Chapter V of MO I ) p a r a 1 9 9 o f t h i s M a n u a l s h o ul d b e referred . Du ring t he an nu al re vie w of th e working of th e Acco un ts office following d ocu ments sh ou ld be re vie wed a s far a s Expe nd it ure Au dit is con cerne d. i. Bills Reco verable re gister (cf AI) Th e registe r sho uld be revie we d to e nsure th at the bills for due s re coverab le fro m d ifferen t parties ha ve b een prefe rred time ly an d correctly and ou t s t an di ng d o n ot r el at e t o v e ry o ld pe riod s . T he p os t i ng s in t he re gister should also be checked with initial records to the extent prescrib ed . ii. Re cove ry of e le c tricity ch arge s fro m ou tsiders. The p ro cedu re for wa tching re covery of e le ctric curren t ch arge s sho uld be examine d critica lly and it sh ou ld be seen tha t du es a re not allo wed t o accu mulate and tha t the syst em is wo rkin g ef ficien tly. iii. Review of imp ortan t ca se s ma y be u nd ertake n in th e course of the ann ua l review of t he wo rk of th e Accoun ts office . I t shou ld be seen tha t pos t c he c k o f p ai d b il l s h as not f a lle n in to arrears. (CAG(R)'s secret letter no.1458-DRAI/8-5 /67 dat ed 5.5. 67). Office Manual 161 CHAP TER XI I STORES AUDIT 403. General. A udit o f St ore s A c c ou nt s s ho ul d b e c o ndu c t ed in ac c or da nc e w i t h t he p ro gr am m e la id d ow n i n t he Se c re t M e mo ra nd um und er Sto re s Aud it keep ing in vie w th e g en eral prin ciples en un cia t ed in paras 2.5 . 1 to 2 . 5.5 of MSO(Au dit) Ch ap ter XVII o f Railway Aud it Ma nu al. Th e ru le s co nta in ed in the In dian Railway Co de for the Sto re s De partmen t (v ols. & II-1990) and the instruct io ns/ame ndme nts issued by ADAI (Rlys) f ro m t im e t o t i m e . 404 . A u d i t j u r i s d i c t i o n . T he a ud it of St o r es a c c ou nt s ma i nt ai n ed by t he Stores Acco unt s off ice s an d by the Sto re s De pot s is con du c ted b y the St ores Aud it s ec t i on s as i nd ic a t ed be lo w . 1. Sto res he ad qu arters Au dit Se ctio n FA &CAO (st o re s) Mu mb ai Aud it o f acco un ts ma in tain ed b y 2. Bra nch Stores Aud it units a. P ar el Aud it o f a c c ou nt s m ai nt a in ed b y Wo rksh op Accoun ts Officer, Parel b. Ma tun ga Au dit of a ccou nts maint ained by Worksho p Acco un ts O f f ic e r, Ma t u n g a c . J h a n s i A u d it o f a c c ounts maintain ed by Wo rkshop Accounts Officer, Jhansi d. Bhu saval Au dit of a ccou nts maint aine d by Worksho p Accoun ts O f f ic e r, PO H B SL 2. Th e va riou s sto re s de po ts coming un de r the au dit co ntrol o f Sto re s He ad qu arters a nd o t he r Sto re s Audit un its are ind ica ted in An ne xure 29 to this Ma nua l. The e s tab lish me nt au dit an d in spe ctio n of th ese o ffice s in c lu d i n g s u b -o f f i c e s sh o u ld b e d o n e b y t h e Sr. / A u d it O f f i c e r s co rre spon ding to th e Acco un ts Officers cond ucting the in tern al check o f the e s tab lishme nt exce pt Sr./ Au dit Officer (Workshop & Stores) wh o is co nd ucting th e e s tablishmen t a udit in re spe c t of the Dep ots a t Parel/Matu ng a in add it io n to inspe ction of th ese dep ots. 405 . Re view of Stores Contracts: The scope and exte nt of ch eck in re spect o f this item of wo rk is as giv en in t he Prog ra mme o f Au dit in t he Secret Memorandum (item XIII (ii) u n d e r St o re s Au d i t S e l e c t i o n o f co nt r a ct s f or a ud it s ho ul d b e t ak e n f r om t he f un ds R e gis t er m a in t ai ne d b y the Co ntroller of Sto re s office . In st ru ctio ns g iven in Ind ian Ra ilwa y Code for Stores Dep artme nt 19 90 a nd p aras 29 9 to 30 7 of RAM sho uld be borne in mind . Au dit sho uld be g uide d by the details in the tabulated summaries for each ten der prep ared by Ten der Commit t ee o r th e o ffice r wh o de alt wit h t en de rs w here t he o ri gi na l t en de rs t he ms e l v es a re n ot avai l ab le . Ho w ev er , a t es t c he c k t o t he e x t en t p re s c ri b ed s h ould b e exe rc i s ed o n t he ac c ur ac y of t he t abu l at ed s u m ma ri e s b y a l oc a l ex a m in at i on o f o r ig in al tend ers. Se e also pa ra 2 67 RAM & 2 7-M O I. A re cord of contracts reviewed sh ou ld b e ke pt in a reg iste r similar to the on e p re scrib ed for works co nt ra ct s. 406 . Audit of Railw ay Board's Contracts: Th e la st sub -p ara of pa ra 32 of t he Se c re t M e mo ra nd um o f I ns t r uc t i on s r eg ar di ng t h e ex t e nt c on t ra c t s Principal Director of Audit, Central Railway 162 ente red into b y th e Ra ilwa y bo ard for pu rch ase of Cast Iron an d Ste el sle epe rs, rolling sto ck and oth er ma terials will b e reviewed by the office o f ADAI (Rlys) to the e xten t a s prescrib ed in th e a nne xure a ppe nd ed to Ch ap ter II of t he Me mo ra nd um of in stru ctions. Th e Principal Directors of Aud it will ch eck t he ten de rs an d cont ra cts e nte re d in to by the Railwa y Administration as a co ro lla ry a ction accord in g to th e exten t o f che ck prescrib ed therefor in the MOI. 2. Th e det aile d proced ure la id d own in p ara 41 4 a nd a lso in succee ding paras will a pp ly muta tis mu tan dis the au dit of Ra ilway Board' s co ntracts a s st at e d i n t h e f o re go in g p ar ag ra ph . 3. Fo r t he purpo se of su pp le me nting a udit o f R ai l w ay B oa rd ' s c on t ra c t s , CAG(R)' s o ffice , h as e v olved a p roced ure of fu rn ishing a list o f Railwa y Boa rd ' s c o nt r ac t s s o t hat t h ey c ou ld arra ng e f or s ep ar at e a ud it o f payme nts un de r th e con t ra ct to th e ext ent o f 10 0 pe rce nt. (CAG(R)' s o ffice co n f i d e n t ia l le t t e r 3 2 2 -R A I I / 2 0 -4 / 8 4 d ated 16.3.85, no.384-RAI / 17-18/87 date d 29 .6. 87, Au/Rep /Con /15 / 28 11 d ate d 3.8 . 87 & Au/SHQ/I/II/XX(B)/ROC/148/486 dated 29. 10. 87) 407 . Rev i ew of Implem enta tion of Contra cts. (para 32 & it em no. XIII-3SA-MOI) This review is to b e co nd ucted o n co mpletion of the co ntract i.e . afte r th e de live ry o f Stores (c/fp ara 32 of Se cret memoran du m). The obje ct of such a re view is mainly to kn ow wh eth er th e co nd itio ns o f co ntra ct ha ve be en ho no ured by th e p arty with ou t an y disp ute, de la y or defe ctive sup plie s enta iling extra co st or exp end iture to th e Railwa y Administration . 2. Th e f ollo win g a s pe cts o f imp lemen tation o f a sup ply con t ra ct sh ou ld be se en . i. T h e m a t er ia l has b ee n s u pp lied as p er s pe c if ic a t io ns d ul y i ns p ec t ed b y the in sp ectin g au tho rity state d in the ag re emen t re la xation in sp ecification s if an y a llowe d, h as b ee n ma de afte r ne ce ssary t ec hn i ca l c on cu r re nc e and s ui t a bl e r ed uc t i on in r at e . ii. Th e stores h ave b een d elive re d with in a stipu la t ed p erio d and e xten sio n, if an y gran ted ha s be en allowe d o nly af ter takin g into co nside ra t ion the qu estion of re covery o f liq uida t ed da ma ge , wh ereve r high er rate s were accep t ed o n t ime prefe re nce b asis, it sh ou ld be see n th at no e xten sio n ha s bee n gra nted with ou t fin ance c o ncu rr en c e. iii. V ar i at i on i n ra t e or q ua nt i t y s u bse qu ent t o t he e x ecu t io n of t he c o nt r ac t hav e be en s an c t io ne d b y t he c om pe t en t au t ho ri t y . iv. Claims for d amag e, sh ortag e e t c. ha ve b ee n pre f erre d in t ime and p ur s ue d p ro pe rl y . v . Extra ha ulag e of mate ria l ha s not o ccurre d d ue to in corre c t in formation re ga rd in g co nsig n ee , s pe ci f i c at i o n e t c . vi. Any G overnment assistance given to the contractor by way of p rocureme nt lice nce for ra w mat eria l et c. h as not ren de re d un due a dva nta ge to th e su pp lier. v i i . F in al d ec i s io n o f arbit r at i on c ases, if any, should be wat ched. 3. Unde r th e prog ra mme o f au dit a ll the contra ct s p urcha se orde rs en tered in t o/ i s s ue d by S t or es D ep ar t m en t o f Cen t ra l Railway for bo th sto ck and Office Manual 163 non -st ock items of va lue of ove r Rs. 10 la khs came up for re view-q uarterly b y S r. / Au d i t O f f ic e r(SHQ ) a n d t h e p a rt i c ul ar s o f t h ese c on t r ac t s / p ur c has e orders are re corded in a reg iste r mainta in ed fo r th e purpo se. Ho wever, in so f ar a s review of imp lemen tation o f cont ra cts/purchase orders in respect of St ock an d No n-stock items a re con cerned the Sto re s con t ract se ct io n, a t t he b egin ni ng o f e v ery q ua rt e r o bt a in t he p os i t io n of c o mp le t ed co ntra ct s/purch ase orde rs from p erio d ical prin ted sta t emen ts,p re pared b y EDP Mana ge r an d such of tho s e comp le ted ite ms valu ed o v er Rs.1 la kh s sh ou ld b e m ar k ed a s s uc h a ga in s t t he r el ev a nt c on t ra c t / pu rc h as e o rd er ente red in th e Reg ister of Review o f Co ntracts a nd Te nd ers re ferre d to abo ve. A list o f th ese ite ms sh ould th en b e prep ared and selection sh ou ld be ma de acco rd in g t o th e p re scribe d percen t ag e. The pa rticula rs o f such se l ec t e d c on t ra c t s / pu rch as e o rd er s as r ec or de d i n t h e r egis t e r o f re v ie w o f co ntra ct s/ten der sh ou ld b e int imat ed to the Divisional Audit Officer/Au dit Officer con c erned . Division al Au dit o f f ic e r/ Aud it o f f i c e r / s h o u l d t h e n f i n d out from their Accounts Counterp arts an ds also ve rify from the con t ra ct f il es w he t he r t h e c on t ra c t s / pu rc h as e o rd er s hav e bee n c om p le t ed a nd f in al payme nts h ave be en mad e. Fo r this, p urpo se each se ctio n/d ivision will ma in tain a se para t e Registe r for wa tchin g the implemen tat io n of the co ntra ct s as pe r list receive d from St ores Contra ct section.In the re gister of imple me nta tion of con t ra cts o f Stores Contra ct sectio n, separate record sh ou ld be kep t of th e co ntracts/ purcha se o rd ers relating to n on -sto ck items re ported to Divisional Au dit off icers/Audit officers f or se lection and re view. Th e p ro c ed ure laid d own in pa ra 37 7 OM will ap ply muta tis-muta nd is to Stores Co ntracts also. 4. The registe r o f re view of impleme nta tio n o f con t racts will be ma in t ai ne d in t he f or m p re s c ri be d i n A nn ex ur e 27 o f t hi s M an ua l. ( PO O 105 5 d ate d 2 2.2 .79 7 POO 1 074 da ted 11 .12 . 19 80 ) 408 . Purchase Orders. Th e in st ru ctio ns re ga rd in g purcha se po licy co nt a i ned i n I nd ia n Ra i lw a y c od e f or t h e St o re s D ep ar t m en t ( 19 90) s h ou ld be b orne in mind Th e e xten t of ch eck o f pu rch ase orde rs h as b een prescrib ed in let t ers No. 23 01-RAI/8 -7 /66 dated 27.8.66, 2085-RAI/8-7 /66 dated 21.6. 67 and 2965-RAI/8-7/ 66 date d 9.8.67. I t em XIII (1)-SA-MOI and para 299 of Ra ilway Aud it Ma nu al may a lso be re ferred to. 409 . R i sk Pur c h as e Sta te m ent s a n d Cl ai m s R eg i s te r. I n t h e e v e n t o f failure on the part of firms to supp l y t h e m a t e ria ls a s k e d f o r in t h e purcha s e orde rs wit hin the stip ulate d pe riod , fre sh pu rch ase o rd ers a re ma de b y th e Cont ro ller of stores at th e risk an d cost of th e de fau lting firms. In the accounts offices, the bills re la ting t o ris k p ur c ha s e o rd er s are p asse d like oth er b ills. As re gards bo oking o f e xp en diture the co st o f the origina l con t ract ra te is de bited t o the fina l h ead o f accou nt an d the ex t r a e x pe nd it u re r ep re s en t in g t he d if f e r ence b et w ee n t he r ev i s ed a nd t he orig in al co st t o miscellan eou s Advan ce (Re ven ue) as reco verab le f ro m the def a ul t i ng f i r ms . F o r w at c h in g re c ov er y of t he se a m oun t s , a re gis t er ca l le d C l aims R e gis t er is m ai nt ai ne d i n t he Ac c ou nt s O f f ic e . T h ese s h ou ld be reviewed h alf yea rly t o see th at ad eq uat e and time ly actio n has b een t a k e n b y t h e F A&CA O t o wa r ds e f f e c t i n g r e c o v e rie s . I n re g a rd t o it e m n o t se lecte d for de tailed au dit case s of a bno rma l d elay sh ou ld be listed se pa ra tely an d ta ken up f or co mme nt if n ecessa ry, in t he rep ort on the e f f i c ie n c y o f i n t e rn a l c h e ck. 410 . Audit of Stores bills. See pa ra s 30 , 43 an d items I SA; MOI and (P a r a 3 0 7 o f R AM c h a p t e rs I I I t o X I o f R a ilw a y Co d e f o r St o re s Principal Director of Audit, Central Railway 164 De pa rtme nt. Vo l.I 199 0). Pu rch ase of store s fo r t he Ra ilway is arra ng ed b y CO S e it her d ire ct ly or thro ugh DGS&D b ills for st ores p urcha sed for sto ck by th e COS are passe d by FA&CAO . Th e au dit o f th ese b ills sh ould be co nd ucte d by Stores Hea dq uarte rs Au dit Sectio n. Bills for non-stock items ch arge ab le to Reven ue , Cap it al, DRF an d OL WR wo rks are p asse d b y the Un it Acco un t o ffices conce rn ed . Au dit of the s e bills sho uld the re f ore be don e b y the resp ective u nit Audit O ffices. Selection of bills f or audit sh ou ld be mad e d irectly from th e Au 6 Re gisters mainta ined in th e Accoun ts Office to t he e x ten t prescrib ed in the programme o f au dit, select io n of b ills for pu rch ases ma de by th e DGS&D may b e mad e e it her from th e Re gister of b ills receive d from, the sup ply Dep artment or th e st ate me nt of b ills re ceived from the Pay and Accounts officer. 2. All b ills relating to pu rch ase orde rs fo r stock me mo s place d o n and f ro m 1 . 3. 7 8 b y Co nt r o ller of S t or es S ou t h C en t ra l Ra ilw ay i n r es p ect o f Kurud uwa di Stores de po t wo uld be pa sse d b y th e FA&CAO, Sto re s Ac c ou nt s B ra nc h, C e nt r al R ai l wa y M um ba i V T . Aud i t of t h es e bills w ou ld be d on e b y S t or es A ud it H Q rs . S ec t i on . Pu rc h as e b i lls i n r es p ec t of dire c t delivery stores wou ld be p asse d by Divisional Accounts officer, Solapur and a udit the re of wo uld be do ne b y Division al Au dit officer, Solap ur. Jo urna l vo uche rs wou ld be a udite d by Sto re s h ea dqu arters section . (A uthority: Para 2(i) of POO no.1047 dated 31.7.1978) 3. Purcha ses throu gh the ISD (Ind ia sto re s Dep artmen t ) The ISD bills in re spect o f stock items sho uld b e a udite d by th e Stores HQrs. Au dit Sec t i o n. T he s el ec t io n o f t h ese b il l s f or a ud it s ho ul d be m ad e f ro m t he advices re ceived in th e Stores Accou n ts Sectio n from t he Bo oking section deta iling the bills adju s ted during the month . 4. The ISD bills in re spect of purc hases for specific wo rks will be debited to th e Divisio na l Acco unts offices con cerned th ro ug h Tran sfer d ivision al. In respect of Accounts Office (Worksho p & S t or es ) t he s e w i ll b e ad ju s t ed to th e fina l h ead s by th e FA&CAO (boo king). The Division al and Workshop Audit Units should select th e bills for au dit f ro m th e ad vice s rece ive d from boo kin g se ctio n to th e e x ten t prescrib ed . Th ese b ills sho uld be au dited a s per in stru ctio n given in pa ra s 3 05 to 3 07 of RAM. Se e also pa ra s 1 102 and 11 10 of In dian Railwa y cod e fo r Stores De pa rtme nt. 5. Tracing of Stores Bills. Tracing of b il l s s ho ul d b e d one as f ol lo w s . a. Bills for stock items in cluding ISD Bills: St ore s HQrs. Au dit S ect ion shou ld se le ct th e b ills to the exte nt p re scrib ed for tracing into the pu rch ase Accoun t re giste rs. The de taile d p articulars of th ese b ills should be intimated to the various Divl.and workshop A u d it Un i t s f o r tra cin g by th em in to the p riced le dge rs. Du e to introd uction o f compu t erisa t ion of Stores Accoun ts (excep t Engg . d epa rt me nts) ma inte nan ce of priced L ed gers and Nu merica l L edg ers has b een elimina t ed . The tracin g of aud ited b ills sh ould , th erefo re , be d one e v ery mo nth in t he Transa ction State me nt a nd Purchase st ate me nts mad e ou t son th e co mput er, co pies of wh ich are a v ailab le in the De po t Accoun ts offices. De tails in respe ct o f Stores bills pa ssed b y FA&CAO(s) fo r no ns t oc k i t ems (se le c t ed f or t ra c in g) s ho uld also be intimated to the unit offices for tra c ing by th em int o the Work/Reve nu e Allo cation re gisters a s t h e c a s e ma y b e . Office Manual 165 b. Bills passed by DA Os/WAOs incl uding ISD bills for non-st ock items ad ju sted by th em: Su ch b ills au dited by the m sh ou ld b e trace d b y Divl/Workshop Au dit units to t he extent prescribed. 411 . Port a nd Cus tom Cha r ges for im ported Stor es. (I t e m (4 ) S AMO I / Pa ra 3 13 -R AM ) . T h ese b il l s s h ou ld b e c he c k ed q uart e rly t o t he e x t en t prescrib ed . Selection sho uld be take n fro m the Au 6 Re gisters mainta ined in the Accounts office separa tely for port and custom charges. 2. Th e corre c tne ss of the ra tes cha rg ed shou ld be ve rified with ref erence to the Po rt Trust Schedule s and Indi an Cu stoms Tariff. Se le ction should be t ak en f ro m t he A u6 R e gis t ers m ai n t ai ne d in the Account s office separa tely for po rt a nd custo m charge s. 3. T he c or r ec t n es s o f t h e ra t es c ha rg ed s ho ul d be v e rif i ed w it h r ef er enc e to th e po rt Trust Sche du le s and Ind ian Cu stoms Tarif f. It sho uld a lso be se en t ha t t he al l oc a t io n o f t he c ha rg es i s c or re c t an d t h e b il l s ha v e b een accep t ed an d co unt ersig ne d b y the CO S. 412 . Sa les Abs tra cts a nd Sale s Register . (I t em V(3)-S A; MO I & Ch ap t ers XXIII & XXIV-S. Railwa ys se ll o nly, un se rvice able a nd ob solete st ores and scra p accumu la ted in Railways wh ich are surplus to t heir req uiremen ts. Sales are g ene rally ma de to o t he r Gove rn ment Railwa ys an d De partmen ts and p riva t e pa rties includ in g ex-ra ilw ay emp lo yee s. Se le ction fo r au dit sh ou ld be ob taine d f ro m t he Sales State men t s prep ared on the compu t er. 2. Instru ct io ns give n in pa ra 32 0 of RAM sh ou ld be f ollo wed in checking Sales Abstracts and Sales Registers. I t s ho ul d b e s e en t ha t t h e a m oun t s sh ows p ur c has e d h av e b ee n r ec e iv e d i n a dv an c e a nd c o r re c t ly a c c oun t ed for an d th e ma terial ha s be en remove d within the stipu la t ed time a nd tha t pen alties h ave bee n e nfo rce d wh ere n ecessa ry. 3. Th e p ro cedu re with reg ard to sales wh eth er of su rp lu s store s or oth er classes of stock should be reviewed periodically. Du ring local visit to the dep ots, the de taile d a rra nge men t s for te nd er or au ction sales sh ou ld be re vie wed. 4. I n a l l i mp or t an t c a s es t he p ap er s o f t he C O S r el at i n g t o in v it at i on o f pub lic t end ers, a uction s et c. sho uld be stud ied an d a ny def ects in the proced ure b ro ug ht to no tice. 413 . Revie w of Suspens e Regis te r s. T he f ol lo w in g Su s pe ns e A c c oun t s are maint ained in Stores Section. i. Pu rch ase indig eno us ii. Pu r ch as e I m po rt e d iii. S a l e s a cc o u n t iv. D ep os i t m i sc e l la ne ous A c c ou nt v . Misce lla ne ous Adva nce s Accou nt vi. St ock Adjustment Account vii.Stores-in-Tra nsit viii.Fun d Re gister (see paras 298 ,31 0,3 11 -RAM,.Ch ap t er VI-AI & Pa ras 27 21 , 27 29 , 27 39 , 27 40, 27 46 and 28 16 -S. i. Purc hase-These re gisters s ho ul d b e r ev i ewe d y e arly. ii. Sa les.During the review o f bo th purcha se and Sales reg isters, it s ho ul d be s ee n t hat t he b al an ce s h av e be en r ec on c i le d w i t h t he Ge ne ra l b ooks. Th e en trie s in th e p urcha se an d Sa le s re gisters s ho ul d be r e co nc i l ed w i t h t ho s e in t he p ur c has e a nd s a le s sta t emen ts in resp ect o f t he s el ec t e d d ep ot s . Principal Director of Audit, Central Railway 166 ii i . F un ds R eg i s t er. T hi s r egis t e r i s m ai nt ai ne d t o re c or d t h e p ro gr es s o f lia bilitie s incu rred aga inst bu dg et gran t und er the a pp ro pria t e h ead s pa ras 50 6-S an d 3 20 of RAM sho uld b e refe rred to wh ile revie wing t h is r e g is t e r . iv. Misce lla ne ous Ca pital an d Revenu e. In terms o f Pa ra 27 39-S, a r eg is t e r i s m ai nt a i ned t o p os t t he i s s ue n ot e s c h arge ab le t o M is c e l la ne ous A dv a nces- C ap it a l a nd t he ir c l ea ra nce i s w at c h ed . Misce lla ne ous ad van ces re ven ue is also op erate d in Sto re s Acco un ts to b oo k a mo un t s o f e xcess expe nd it ure on Risk p urchase s in te rms o f Pa ra 28 23 -S. It sh ou ld be see n th at expe ditiou s action i s t a k en t o c l e ar t h e ou t s t an di ng i t e ms an d t ha t no i t em w hi c h c ou ld prima facie b e de bite d to fina l h ea ds is d eb ite d to Miscellan eou s Ad van ce-Ca pita l/Re venu e Instruct io ns given in para 38 1 of RAM s ho ul d be b or ne i n m i nd. Se cu rity De po sit re gister. Th is shou ld b e gen erally reviewed a nnu ally on the line s indica ted in pa ra 18 01 -e t seq . 414. Stock Verification reports. A half yearly review of st ock verification re ports close d d uring the previou s ha lf yea r shou ld b e co nd ucted to the ex t en t pres c r i be d. T he s el ect io n should be obtain ed with re ference to the Re gister of Stock Sh eet s main taine d by th e Insp ecto r o f Stores Accoun ts in te rms o f p ara 32 61 -S. th e aud it scrutiny of stock sheets should cover re sults of verif ication of all kinds of stock including charged off stores and Perman ent way mate ria ls in the custo dy o f En gine ers. Th e review sh ou ld be ma de a s pe r in st ru ctio ns in p ara 3 27 of RAM. t he co nso lida t ed st ate me nt o f Acco un ts an d De pa rtme n t a l St o ck ve rif i ca t i o n st a t e m e n t s prepa red o n t he co mpu t er sho uld b e reviewe d mon t hly. ii. Review of Insp ection Re po rts o f th e Acco un ts In spe c tors of Sto re s Ac c ou nt s . T he c l ose d in s pe c t io n r epo r t s o f t he i ns p ect or of St o re s Accou nts sh ould be reviewe d q uarte rly eithe r at HQrs. or Division al Au dit O f f i c e s . ( Au t h o rit y : A u / SH Q / x i/ 9 / Vo l. I V d a t e d 1 1 . 4 . 9 0 ) 415. Auction Sale Account. (see item VII-SA:MOI & para s 2412 to 2446S-II) A g en eral re vie w of au ction sa le acco unt p lus a d eta iled che ck o f auction sale account to the extent p re s c ri b e d ( C / f C AG ' s le t t e r 2 3 0 1 -RA I / 8 7/66 da ted 27.8 . 66 ) sh ou ld be carried ou t. Instruct io ns given in pa ra s 273 3-S a nd pa ra 32 8 o f R AM s ho ul d b e b or ne in m in d. 2. Th e cop ies of ag re eme nt en tered in to with auct io nee rs a nd th e a cco un t of all au ctio n sales are re ceived in th e accou nts office, which sho uld be re vie wed with re feren c e to th e para s in th e sto re s co de me ntio ned a bove . It sh ou ld be p articularly se en th at th ere is n o de lay on th e p art of the auctio nee r in re mitting the sale p ro cee ds to the Ra ilwa y and the co mmission is p aid as pe r agre emen t. 416 . Ye ar l y Statem e n t o f Stor e s T r a ns ac ti on s . (I t em IX (2)-SA-MOI, para 294 3-29 46 -S). A state me nt o f actu al ba l ance s of S t or es o n h an d at t he end of each f in an cia l yea r is p re pare d by the Railway Administration in Form S.30 01 an d su bmit ted to th e Ra ilway Boa rd by t he 1st Nove mber o f the follo win g year. the sta t eme nt is p repa re d by t he Con t ro ller o f Stores with the assistan ce o f th e Accoun ts o ffi cer. Detailed in stru ctions for prepa ration o f t his sta t eme nt are given in Ch ap ter XXX o f the sto re s co de . Th e sta t eme nt is acco mpan ied b y th re e a nne xures. Ann exu re A-is in the form of a qu estion na ire wh ich sho uld b e a nswered duly ce rtified by th e FA&CAO. Office Manual 167 Ann exu re B-is a re view of b alan ces u nde r ma terial-a t-site acco unt for the ye ar. Ann exu re C-is a state me nt o f balan ces o f ch arge d o ff impre st co mprising the bala nce a t th e e nd of th e ye ar with ea ch ca teg ory of imprest h olde r. 2. T hi s y e arl y s t a t eme nt s of s t o re s t ra ns ac t io ns s ho ul d be c he ck e d o n t he line s indica ted in pa ra 3 24 of RAM. The ba la nce s un de r Ma terials at site ac c ou nt s hou l d b e c he ck e d w it h t h e b al an c e s ho wn i n t he s e ac c ou nt s in the wo rks re gisters. 417 . Store s in Tra nsit re gister. This re gister is mainta in ed fo r (De po t Tran sfers a nd p urcha ses in te rms o f paras 27 46 a nd 27 48 -S). The re gister sho uld be re vie wed yearly to see tha t ou tsta nding items a re cle ared p ro mptly (c/f pa ra 320 of RAM). It sh ould b e see n th at the storesin -t r an s i t purc ha s e r eg is t e r is r ec o nci le d w i t h G ene r al Boo k s as i nd i ca t ed in pa ra 27 15-S. 418. Stock adj ustment Account Register. Provisio ns con t ain ed in pa ra s 274 0-S et.se q. sho uld be stu died . Instruction s g ive n in paras 32 1 of RAM sh ou ld be borne in min d d urin g th e review of t his Re gister. The transact io ns of the st ock Adjust me nt Ac c o un t s h ou ld g en er al l y c o me u nd er sc r u t in y in c on ne c t io ns w i t h t he re v ie w of l ed ge rs , s t o c k s he et s e t c . T he adju st me nt s in r es pe c t o f c l earan c e of s a la rie s t o f in al h ea ds s h ou ld be aud ited d urin g the aud it o f corre spo ndin g jo urna l vo uche rs. It sho uld be se en tha t items are not carried to t h e st o ck a d j u st m e n t a cco u n t wit h o ut prope r inve stigat io ns an d th at a deq ua te rea sons e xist in a ll case s for ke ep in g t hem u nd er Sto ck Adju stme nt Accou nt. 419 . Check of fuel Acc ounts. T h e p ro c edu re f or t he s up pl y , re c ei pt , i s s ue and a ccou nta l of co al co ke, d ie sel o il given in t he joint circu lar o f Accou nts, O pe ra t in g. and Commercial Dep artment s which sh ou ld be st udie d (Joint Circular d ate d 3 0.1 0.6 4) The exte nt an d p erio dicity of au dit of fue l accou nts is th e sa me as t hose p re scrib ed for simila r items und er st ores Aud it Pro gramme. Th is mon t hly a ud it in ad dition to th e items specifically provided for coal in the prog ra mme of aud it an d wou ld be app lica ble to oth er ite ms o f fu el also. Th e items comin g for au dit und er Fuel Accounts are (1) Receipts Ret urns, (2) Delivery notes, (3) Ledgers, (4 ) Month ly sta t emen t o f stores Accou nt current (5) sa les abstra cts (6) su spense registers (7) stock verification reports (8) stores-in-transit re gister an d sto ck adju s tme nt a ccou n t s r e g is t e r. S e p arate selections sh ou ld be t ak e n f or c oa l a nd ot h er f u el i t ems f or a ud it . I ns t r uc t i on s giv en in pa ra 31 9 to 32 0(2) of RAM shou ld b e b orne in min d. (CAG' s le tter no.806-FRAI, 8-1/68 dated 16.3.68, 1364-RAI / 8-3/68 dtd 8.4.69) 2. Aud it o f C oa l i s s ue t i c k et s . T he c oa l i s s ue t i c k et s / n ot e s a re r ec e iv e d in the FA&CAO' s office in re spect of issue to o t he r th an run ning e ngin es and these the re f ore sh ou ld be che cked in the Stores HQ rs.Aud it Section . Issue ticke ts in re spect of a co nso lida t ed sta t emen t is rece ive d in the FA&CAO ' s o ffice and a certifica t e to th at ef fect is fu rn ished every mo nth the FA&CAO. Such issue tickets should b e che cked in au dit du ring lo cal in s p e c t io n s . ( Au S/ XI I C/ ACS I I d a t e d 1 5 . 1 1 . 6 8 ). 3. Sa le o f Coal. A mon t hly state me nt o f sa le of coa l/cin der is su bmitted b y the sh ed to th e Accou nts of fice . It sho uld be se en th at th e sale of co al to Ra ilway e mp lo y ee s is made on ca sh ba sis. Co rre ct n e ss o f t h e ra t e f o r t he co al s ol d t o emplo ye es c a t er in g c o nt r ac t o rs , R a ilw ay a nd n on -r ai l wa y Principal Director of Audit, Central Railway 168 o f f i c ia l s e t c . a n d t h e c o mp e t e n cy o f t h e officials effectin g such sale should be ch ecke d. 4 2 0 . I m p r e s t Sto r e s -E ngi n e e r i n g I m pr e s t . (Para 290 RAM) this refers to ce rtain perman en t way stores held by the Pe rma ne nt Wa y Insp ecto rs for the purp ose of mee t ing urge nt req uir emen ts. Priced led gers fo r these st ores are ma intain ed by the Stores Acco unt s o ffice rs. Th ese p riced le dgers should be audited wit h re ferenc e to provisions in Chapter XVII and XIX-S; Para 14 07 et seq. The a udit o f th is ite m is do ne by the Division al Aud it office rs d uring lo cal insp ection exce pt Ajni an d Ma nmad Sto re s De pots. Imprest Stores, other t han En gineerin g Stores eg.Stores held by Train Examine rs, Loco Foremen etc. Aud it sho uld b e co ndu cted du ring lo cal inspection with re ference to prov isions co ntained in Chapter XVIII -S. 421. Accounts Custody and Disposal of Scrap. (see ite m XVI-SA and para 3 3- MO I ) Aud i t s h ou ld b e c on du c t ed d ur in g l oc al i ns pe c t i ons/ br anc h Stores Office s an d Sto re s De po ts u nde r St ores De pa rtme nt or Eng in ee ring De pa rtme nt wit h re feren c e to p ro v isio ns in Ch ap ter XXI V-S an d Pa ra 326 of RAM. 422. Survey Committee's Reports . Co pies o f th e Su rve y Co mmitte e' s Re po rts a re en do rse d to Au dit (SHQ) in terms of para 2228-S. Copies of Survey co mmitte e' s repo rt s sh ou ld also be f orwa rd ed to Aud it officer (W&S) Parel, Matu ng a a nd Jhan si re gula rly. 423 . R ev i ew of C as es o f l os se s, E m b ez z l e m ent etc. I n t e rms o f p a ra 9 o f RA M all cases of losses and embezzlemen t of e ach or store s excee ding Rs.2 50 00 in ea ch ca se sh ould be re po rte d to the CAG. Th is re port sh ou ld be se nt by th e St ores (HQrs). Aud it Section as fa r as loss o r embe zzle me nt o f St ores is con cerne d. All ca se s of lo sses e t c. exce edin g Rs . 5 0 , 0 0 0 (6 6 . 8 / Au X/ X XI V/ V o l . I d a t e d 1 9.2.88) are re port ed to the Railway Boa rd , by t he Ra i lw ay Adm i nis t r at i on v id e p ar a 1 10 2- F I 2. As regard cases of loss or embezzleme nt of cash/stores below the abo ve limit the s e sho uld be rep orted to th e CAG if the re a re an y sp ecial feat ures su ch a s a bno rma l de la ys in inve stigat io n o r in se nd in g rep orts to the Ra ilways and sen ding a rep ort to the CAG. 3. W hi le f u rn ish in g t he r ep or t s f u ll p ar t i c ulars o f l et t e r nu mb er, dat e s und er which the case wa s re porte d to th e Railway Bo ard an d to the CAG sh ou ld b e g iv e n. T he R ai lw a y ad min is t r at i o n a re r eq ui re d t o r ep or t c as e s wit h in s ix we e k s f r o m t h e d a t e of t he l o s s (cf p ar a 1 10 2- F I ) 424. Inspecti on of Receiving and Despatching sections of Stores De pots . In struction s g ive n in pa ra s 44 6 an d 44 7 o f RAM sh ou ld also be borne in mind. Se e it em no.XIISA;MOI. The inspection of the work of the re ceivin g and despatching sectio ns of th e stores d ep ots shou ld b e carried out acco rd in g to the ap prove d p rogramme to the e x ten t laid do wn in the Me morand um o f Instructio ns. 425. Changes in audit proc edure as a result of com puterisation in stor es. The computerized system of Stores Accounting as in troduced on the Ra ilways h as b ee n de scrib ed in para graph 30 8, 3 09 an d 30 0-A o f the Ra ilw ay A ud it M an ua l w h ic h s hou l d be s t ud ie d f o r a ud it p ur po s es . T he Ra ilway Board in their le tter no.67-ACII/37/15 dat ed 10.7.68 had issued in stru ctions for compu t erisation of St o re s Ac c o unt in g o n R a ilw ay s . T hi s had to be don e in ten pha ses, a s de tailed be lo w. Office Manual 169 Pha s e I Pha s e II Pric e d l ed ge r M ec h an isa t i on Elimina t io n o f Nu me rica l L edg ers Prod uction of Exce ption Re po rts f or Ma terials Man age ment Pha s e I I I Me c ha ni s at i on of O rd er Prog re s s in g Pha s e IV Mech an isa t ion of o rd er Prog re ssin g Phase V Material certificatio n f or Production unit s Pha se VI Paymen t a nd Accou nta l of Bills Purchase Suspense Phase VII Co mput eris atio n of Su spenses i. St oc k Ad ju st me nt A cco un t , ii. St ores-in -Tran sit , ii. Sa le s , iv . P . Wa y St o re s , v i i. De p o s it Mis c e l l a n e o u s , Ac c o u n t i ss u e s . Phase VIII Fore casting and Materials Planning for Production Un it s Pha s e IXa . Fo re casting o f co nsu mp t ion fo r ad vance p eriods on ma thematical/statistical basis, b. de termin ation of eco nomic order qua ntity for e ach item by eva lu ation co st of carrying st ock vis-a-vis c o s t o f o rd er in g, c . D et er mi n at i on of s af e t y st ocks v i s -a -v i s c os t o f orde r in g, d . R un ni ng of s i m ul at i on exercises for A & B class items to ensure that para me ters ca lculate d a nd fixed are co rrect an d will sa tisf y the de mand s arising ove r t he n ext time period s. Pha s e X Co mput erisa t io n o f ot her a re as a. Impre st ma inta in ed by imprest h olde r. b . M a t e r ia ls a t s i t e a c c o u n t c. Eng i nee r in g P la nt R e s er v e d . Wo r k i n P ro gress in Workshop e. Fue l Coal Acco un ts Pha s e s I , I I , I I I a n d V h a ve b e e n in t ro d u ce d o n t hi s ra i l wa y. Me c ha ni s at i on i s a c on t in uo us proce s s a nd i t w il l t a k e s om e t i m e f o r t he Ra ilways t o sta bilize the proce ss of mech an isa t ion. 2. Co nseq ue nt on compu t erisa t ion of stores a ccou nting cha ng es in au dit proced ure in re spe ct of Stores a ccou nting ha ve a lso be come nece ssary. Th e CA G h as t h eref ore, i s s ue d t he f ol l ow i ng i ns t r uc t i on s r eg ar di ng t he me tho d of au dit. Th ese ch an ges h ave b een in tro du c ed in St ores Head Qua rt e rs Au dit Sect ion . W& S Aud it S e ctions, Parel, Matunga, Jhansi and PoH Bhusa v al from the mon t h o f July 19 71 , Nove mb er 19 71 , Jun e 1 972 and April 1976. Arithmetical checks sh ould continue to be carrie d out by aud it staff with ref eren ce to so urce d ate an d o utp ut d ocume nts. I f in the co urse of au dit a ny e rror is n otice d th e re aso n fo r such error sh ould be t ra c ed b ac k t h ro ugh v ar io us s t a ge s o f proce s s in g t o d et e rmi ne w het h er t he erro r is d ue t o hu ma n failure such as a error in co ding , p un ching e t c. or wh eth er it could b e a ttrib ute d to an y la cun a in th e p ro gramme. If the la tter is susp ecte d th e matte r sh ould b e ta ken u p with th e Data Processing ma na ger an d a re po rt incorpo rating remarks of DPM se nt to th e CAG for taking re me dial action. 3. However, as the Computer possesses the abilit y to carry out arith metical calculation s with a lmost u n f a il i n g co n si st e n cy, t h e ch e ck of arith metical a ccuracy o f vo uche rs, which is also su bjecte d to calculation by compu t er ne ed n ot be carried out in a ll case s, but ca rried o ut on ly to the exte nt p re scribe d. 4. To check the completeness of acco untal, transactions to the extent prescrib ed sh ou ld b e che cked to see whe t he r th e tot al n umbe r o f vouch ers se nt b y words (throu gh t he p rice le dg er units) as p er forwarding memo is equ al to th e tota l nu mb er e dited a nd l is t e d plus t he n um be r of v ouch er s re je c t ed . O n t his ra ilway, a ll t h e vo uch er s s ent by t he Pri c e l ed ge r u ni t s Principal Director of Audit, Central Railway 170 und er the forwarding memo irre spective of whe t he r t hey in clu de accep t ab le vo uch ers or u na cce pta ble vouch ers are pu nche d in the mach in e a nd the edit list (kno wn a s Da ily list o n th is railwa y) is prep ared sho win g the to tal numb er o f cards an d the nu mbe r of in corre ct ca rd s se parat ely a nd the ma chine section watches tha t th e inco rrect vo uch ers are co rrecte d b y the De po ts an d b ro ugh t to accou nt su bse qu ently. As the proce du re on this ra ilway is sligh t ly diffe re nt in th at the Edit list sh ows a ll vo uch ers a nd the proced ure a dmits re-e ntry o f re jecte d vou c hers, th e ob je ct of th e ch eck prescrib ed b y the CAG viz.t o en sure tha t all vo uch ers re ceived a re made over t o th e Data Proce ssin g Cen t re fo r proce ssin g an d t hat the y a re actua lly proce s se d is ach ie ved in au dit b y reviewing th e action ta ken on re je cted vouchers. 5. It is laid down that manual lo t totals s ho ul d b e re c on c iled wit h t he H as h t ot a l d ev el op ed by t he co m pu t er. T h e l ot r eg is t e rs s h ou ld be e x ami ned f or this purpo se. In a dd it io n, th e con t in uity of th e vo uche rs sh ou ld be ch ecked with refe re nce to th e Con t in uity Re gisters ma nu ally mainta ined and co ntin uity state ment s prepa red o n co mp ut e r. O n t his ra ilway, t he vouch ers are forwarde d by th e PL se ction to the mach ine se ctio n with a sta t emen t kn own as "To p S hee t " w h ich s ho ws i n t er alia the total quantity in respect of all cate gories o f vouch ers. The va lue to tal is given in re spe ct of rece ip t vo uch ers on ly. I n case of issu e vo uche r, the ave ra ge boo k value is arrived at in t he comp ute r, at th e time of proce ssin g the vo uch ers fo r a ccoun tal in the transaction statement. As such th e quantity total in re spect of all vo uch ers an d va lue tota ls in re spe ct of re ceipt vou chers a s arrive d a t ma nu ally s h ould b e c he c k ed w i t h t h e c or r es po nd in g m ac h in e t o t al s a s giv en in t he Ed it lis t . 6. Lo t reg iste rs are n ot ma inta in ed o n this railway. Th e vouch ers co nt i n uit y R eg is t e r i s m ai nt ai ne d b y t he Price l ed ger U ni t s t o w at c h t he co nt i n uit y o f v ou c he rs r e c ei v ed f ro m w or ds . T hi s sh ou ld b e re v ie we d in aud it. 7. Th e p osting of tra nsa ctio ns fo r ea ch d epo t sh ould be traced to the exten t prescrib ed into t he price Le dge r o r Tra nsa ctio n Sta t emen t. In add itio n th e tracin g sho uld be don e int o th e fo llowing records. a. Accounts stock verification statem e nts in th e case of Accoun ts Stock verification vouchers. b. Departmental stock verification statements in t he case of Departmental stock verification vouchers c. Depot stock sheet-lo sses etc.statem ent in t he case of De pot st ock sheets d. sto ck ad ju stment acco un t stat emen t in the cases list ed a.b. and c ab ove e. Bo ok tran sfer sta t emen t in th e ca se o f Bo ok Transfe r vouch ers f. Retu rn ed stores st ateme nt in the case o f Retu rn ed Sto re s vou c he rs. g. Dep ot tra nsfe r re ce ipts a nd de po t tran sfer issues in th e ca se o f de po t tran sf ers. h. Pu rc h as e s s t at e me nt a nd s al es s t a t emen t in t he c as e of p ur c hase s and sales respectively. i. Deb it s/ c re dits to Misce llan eo us Adva nce Ca pita l st ate me nt in the case of rece ip t and no tes for fab rica t ed sto res an d issue n ote s for i s s ue of M at er ia ls o n l o an. j. Dep osits Misce llan eo us sta t emen t in th e case s of st ores receive d on l oa n a nd re t ur n o f s uc h s t ores a nd Office Manual 171 k. Receip t issues to petty shops stat emen t and worksho p Rece ip t Sta t eme nt in the ca se of re ceipts an d issu es to pe tty shop s und er DCOS and workshop receipts re spectively. 8. St o re s Ac c o un t C u rren t . T h e St o re s A c c ou nt Cu r re nt s ho ul d be c h ec k ed as pe r instruction s conta ined in para 3 19 o f RAM and Item V-SA; MO I. Th e ex t e nt of c he c k f o r t hi s it e m s h ou ld b e t he o ne p re s c ri be d in CA G ' s le tter no. 230 1-RIA/8 -7 / 66 d ate d 23 .8.6 6(see a lso ite m n o.MOI refe rred to abo ve) The e ntrie s in th e accou nt current sh ould b e checke d with re feren c e to Debit/Cred it su mma rie s prep ared on the compu t er. 9. Receipt return s.These include (cf Item II-SA-MOI) a. R et u r ned St o re s b. Impo rt ed Stores(Lo nd on stores) c . Inter Depot Transfers d. Workshop out-turn of the St ores Au dit Pro gramme 10. In o rd er to ma ke t he aud it of rece ipt retu rn s comp re he nsive, th e CAG has add ed a ne w ite m viz. oth er Rece ipt No tes a s Ite m no .5 u nd er Sto re s Aud it p ro gr am m es ( SA I I ) t o i n c lu de v o uch er s l i k e t e mp orary re c ei pt n ot e s , fabrication rece ip t no tes an d n on -sto ck re ceipt no tes in prod uction Units). Wh ile ma king sele ction it should be en sured that differe nt d ay' s tra nsa ct io ns for e ach type o f vo uche r are sele ct ed. Select io n of vouch ers f or a ud it u nd er t h i s c a t eg or y s h ou ld be m ad e f r om t he s um m ar ie s o f de bit s and credits a lloca tion s and con s ig ne e-wise prep ared on the compu t er. 11. Retu rn ed Stores. The se vouch ers sh ou ld b e au dited a s p re scribe d in paras 3 11 of RAM. The s e vou che rs sh ould a lso, be tra ced in to tran saction re gister. As the vou c her is man ually priced , it sho uld b e se en tha t the va lue ha s be en worked ou t correctly. Th e e xten t o f che ck fo r t his item is given in the Prog ra mme of Aud it. 12. Imp orted Stores (Lon do n-Sto re s).Th ese vo uch ers sh ou ld be ch ecked as pe r inst ru ctio ns g ive n in p ara 3 13 o f RAM. The s e sho uld a lso be traced in to th e transa c tions reg ist er. Th e correctn ess of th e va lu ation s sho uld be ch ecke d wit h re feren c e to p urcha se orde r. It sh ou ld be e nsure d tha t co rre c t perce ntag e ch arge s for custo ms, fre ig hts a nd p ort cha rges a re in c lu de d. 13. Inter Depot Transfers. (314-RAM). Th e meth od of p ricing shou ld be ch ecke d an d the vou chers tra c ed in to tran sa ction s reg ist er. If rece ip ts and issu es a re not p aired, it sh ould b e se en th at d if f eren ces is re fle cted in Stores-in-Tra nsit registe r (de po t tran sf ers) 14. Wo rksh op ou t-tu rn . The se vo uche rs are to be che cked to th e e xten t pres c r ib ed . As t he v o uc h er s r el at in g t o w or k s ho p ma nu f ac t u re d it ems o f re c ei pt are p ri c e d a t p re -d et e rmi ne d ra t es f ix e d h al f y e arl y , i t s h ould be se en t h at re v is i o n of price s i s d on e peri od ic a lly a nd t h at t he d if f eren ce s betwe en the actu al ra te a nd the fixe d rate are a djuste d to ove r/ und er ch arge s pe rio dically. 15. De live ry n ote s. (315 -RAM) Th ese vouch ers con sist of a . issu es to Re ven ue and Cap ita l, b. issue to worksh o p s a n d c. in t e r d e p o t t ra n sf e rs. A n add itio na l sub -item viz. oth er d elive ry no tes has be en introd uced to in c lu de f ab ri c at i on i s su e n ot e s , lo an is s u e n ot e s , is s u e n ot e s f or re t ur ns o f ma terials ta ken o n loan etc. Se le ctio n of d ate s o f tra nsa ctio n for Au dit sh ould be differe nt for different types of issue notes. 16. Price d led ge rs o r Tran saction s stat emen ts. Con s equ en t on co mpu t erisa t ion of stores acco un tin g, t he P ri c ed l ed ge rs ha v e re plac e d b y Tran saction s sta t emen t pre pared o n th e co mput er indicat in g th e ope ning bala nc e e ac h i n div id ua l t r an s ac t i on , t he c lo s i ng b al an c e q uan t i t y w is e and Principal Director of Audit, Central Railway 172 va lue-wise. Th e re view of price d led gers sho uld be co nd ucte d with re f er en c e t o t he pe riod ica l lis t i ng s wh i c h c on t ain all t he it e m s of s t o re s mo ved or u nmove d (n o tran saction h aving take n place . O n this railwa y , t he p er io di c al lis t i ng s o f p r ice d le dg ers co nta in ing items bo th moved and unmo v ed are prep ared mo nth ly an d the se a re availab le with the Priced le dg er se ction o f the Depo t off ice . Th is revie w sh ou ld be su pp le men t ed b y a re vie w of mana ge ria l stat emen ts prepa re d o n compu t er. The p eriodicity of review kin au dit sho uld dep en d u po n th e period icity o f pre parat io n o f t hes e s t at e me nt s o n c om pu t er. I ns t ru c t io ns giv en in para 3 17 of R AM f or aud it of Priced le dge r sh ou ld be b orne in min d. While re viewing th e p riced le dg er the correctne ss of the carry forward o f th e o pe ning ba la nce on the cu t off d ate (i.e .da t e on which th e ba la nce s in the Price d ledg er on ma nu al syst em were ta ken over on compu t er) sho u l d b e t e s t c h e c k ed , t o t h e e x t e n t prescrib ed by the Pr.Director of Au dit (vide Au/COR/34/I/ROC 254/1630 dat e d 2 2. 5 . 73 ). 17. Re concilia t ion o f priced led ge r with Ge ne ra l Books. Th e cards p un ched for printing of the transa ction re gister a re recon cile d with the cards taken in to accou nt for the prep aratio n o f summa rie s o f d eb its an d cre dits allo cation wise a nd co nsign eewise on the co mp ute r fo r ea ch de po t se pa ra tely. Then cla ss le dg ers a s we ll as su mma ries o f deb its and cre dits are prepa re d on th e compu t er. The fig ures app ea ring in th e summarie s o f deb its a nd cre dits are extract ed in a state me nt ca lle d Broa d de trails o f re ceipts an d issu es for e ach d ep ot eve ry mont h and the g ra nd to tals re conciled with figu re s as p er cla ss le dg ers. 18. The Gen eral Boo k fig ure rep re sen ts t he co nsolida t ed jo urna l slip fig ure wh ich is g ive n to the Ge neral boo ks a ccoun t, se ction for fin al in corpo ra t io n in th e G ene ra l Boo ks un der Cap ital stores-susp en se. The co ns o li d at e d j ou rn al s li p is p re pa re d f r om t h e J . E s . re c eiv ed f r om t he differen t section s of Stores Accou nts v i z . P u rch a s e , I s s u e , S a le s , P e t t y sh op s, led ger sect io n). (A C/ 9 23 / SG / Co m d at e d 1 8. 1 0. 7 3 an d A C/ 3 6 0 3 / E DP M / St o re s / 1 / 7 5 d a t e d 3 12-75 from t he FA&K CAO.Stores A ccounts)CAG's letters no.2123-RAI/88/71 DATED 7 . 4.7 2.2 92 5/RAI/8 -87/7 1 KW d ate d 25 .8.7 3 Au/SHQ/83 WI II date d 5 . 4. 72, 6.7 2) 426. Check of Journa l Vouche rs including scrutiny of adjustments: De tailed in stru ctio ns reg arding check o f ite ms are con t aine d in p ara 3 87 o f RA M. Th e instructions in this regard con t aine d in Ch ap ter o n Expe nd itu re (Work s ) Au dit ma y a ls o b e s ee n. T he n at u re o f t ra ns ac t i o ns jo urna lis ed b y the Store s Accou nts se ctio n a re: a. Pu rch ase b. Sa les c . Misc. Advances d. Dep osit Misce lla ne ous e. inter-Depot Transfers-R e c ei pt s a nd I s s ue s f . Gain s and Losses g. Purchases-Import h. Workshop Manufacture i. Provisional ROS j. St ock Adjustment account k . Issu e to Capita l a nd Reven ue , Workshop l & retu rn ed stores l. Tracing of JVs in to Jo urna l in re spe ct of Office Manual 173 I n t ra -r ai l w ay s t o re s t ra ns a c t io ns i nc l u di ng fuel. 427. Audit of Sanc tions. T he s an c t io ns r ec e ive d i n t h i s s e c t i o n re la t e t o procureme nt rece ipt a nd dispo sal o f Sto re s.The instruction s in t his rega rd co nta ined in pa ra 13 2 an d 1 33 of RAM an d Ch apt er on Expe nd itu re (Works) Audit ma y be seen. 428. Audit of Stores journal . Se e pa ra 31 8- R AM a nd p ar as 2 93 2 and 293 3. 429 . Audi t of price Li sts . Se e i t e m n o. X V- SA-M O I an d p ar a 3 23 of R ai l wa y Aud it Ma nu al. 430 . Au dit of Stores Man ufa cturin g (Clo t hing F ac t o ry A cc o un t ). Th e a ud it o f t hi s f ac t o ry s et u p a t C ur r ey R oa d u nd er C en t ra l as w e ll a s lo c al in spect io n is do ne by th e SHQ section . Principal Director of Audit, Central Railway 174 C H AP T ER XI I I WORKSHOP AUDIT 431 . Dutie s: Wo rksh op Aud it Section s are situa t ed at Pa rel, Ma tun ga , Bhu sava l, Bh op al a nd Jha nsi. Th e follo win g Workshop s, Stores d epo ts and printing press fa ll u nd er the ir j u ri sd i ct io n . (cf a lso p a ra 4 1 3 ) Wo rkshop & Stores Aud it Sect io n 1.Pa re l 2.Matu ng a 3.Bh usa v al 4.Jhansi 5. Bhop al 6. Solap ur Workshop Sto re s etc. 1. 2. 3. 4. 5. 6. 7. Loco Workshop,Parel Workshop,Byculla Mech anical Stores De pot, Parel Print ing Press,By cu l la Tra c tion ma chine Workshop /Nasik-Ro ad ACOS (TMW)-Nasik Road I nd i an Ra ilw ay I ns t i t ut e of Elect r ica l Eng in ee rs (IRI EEN)-Nasik Road 1. C&W Workshop s includ in g Ele ctrica l,MTN&EMU Po H 2. Civil En gg . Wo rk s h o p / Ma n m a d 3. C&W,Mech anical&Electrica l Stores De po t Matu ng a 4. St o re s D ep ot a t Vidy a v ih ar 5. St o re s D ep ot f o r T a nk W ag on Ku rla 6. Sto re s de po t for DC elect ric locos-Ka lya n 7. F la s h b ut t we l di ng plan t Ka ly an& Ch alis gao n 8. Thakurli Power House 9. St o re s D ep ot f o r K al v a C a r-s he d 10 . 10 . XE N(B& F)Man mad 1. AC E le c t ri c L oc o W o rk s h op Bhu s av a l 2. AC E le ct ri c L o co St o re s De p o t , Bh u sa va l 3. St o re s D ep ot B husa v al 4. En gg . St o re s D e p o t - Bhu s a v a l 1. Workshop -Jhansi 2. Mech anical Stores De pot Jhan si 3. En gineerin g Stores Depot Jhansi 4. St o re s D ep ot a t D ho lp ur 5. St o re s D ep ot o f G w al i or 6. Rail Spring Karkhana Sithouli (G walior) 7. St o re s D ep ot R SK / ST L I \ ( G w a l io r) 1. Carriage Repair Workshop(CRWS) Nishat pura, Bh op al 2. St o re s D ep ot C o ach r ep ai r Wo r ks h op (N S Z)Bh op al 1. Ku rd uwad i Wo rksh op (NG ) 2. D ep ot s t o re s k ee per - Ku rd uw ad i (POO NO.1 11 2 d ated 10 /10 / 19 86 as mod i f ie d b y l e t t e r n o . A u / R e p o r t / 1 5 / 8 6 87/I nsp. Programme/1 40 8 d ate d 4 . 6.8 7) No te. Th e inspection of the Diesel St ores Depots is done by the Divl. Audit Officers who co nduct audit of Diesel loco sheds. (Authority: POO No.1103 dat e d 2 7. 4 . 85 ) Office Manual 175 In a ddition to aud it of wo rksh op and Sto re s de po ts ment io ne d ab ove , the aud it of Estab lishme nt p ortio n a lone falls un de r th e a ud it ju risdiction of t he se c t i on s me nt i on ed be lo w . 1. W&S Aud it Sect io n, Pa re l Est ab l ish me nt o f D C O S(G ) C R D & ACO (D)Ku rla 2. W&S Aud it Se ct io n Ma t un ga Estab lish me nt o f HBHR an d Co nstruction Wo rkshop under XEN(C) Sr.ABE(D)MMR (Au/W&S/PR/VII I -1 /91 da ted 30 /311 -89) Th e a bo v e men t ione d Wo rksh op Aud it Sectio ns a re re spo nsible fo r the followin g: a. Aud it o f expe nd itu re in curre d by th e Mecha nical & Electrical De pa rtme nts (so far as worksho p is conce rn ed ) fo r th e p ro curemen t of Rolling Stock p lant and mach in ery. b. Aud it of e s tab lish me nt ch arge s an d PF accou nts of th e st aff o f Me cha nical an d Sto re s De pa rtme nts at tach ed to Wo rksh op s and wh ich a re de alt with in th e Estab lishme nt b ra nch of Workshop Accounts offices. c. Loca l pe riod ica l in spect io ns o f workshop s an d Stores De po ts etc. d. I n s p e c t i o n o f t h e o f f i ce o f CME/ CWE a n d CEE. e. Audit of Dead Stock Account,Passes and PTOs,Imprest Cash Accou nt, Sta mp an d Sta t io ne ry acco un t o f Wo rksh op Accoun ts Offices. Aud it o f ite ms o f works fa lling und er Cent ra l Au dit prog ra mme re la ting to Wo rk s h op s s uc h a s a ud it of e s t ab li s hme nt c harg es , Provi de nt F und Ac c ou nt s , aud i t of G en er al a nd Su bsi di ar y B oo k s m ai nt a in ed b y t he Wo rkshop Accounts Office is carrie d ou t in acco rd an ce wit h the in stru ctions a pp licab le to Centra l Aud it. The provisio ns co nta in ed in Ch ap ter XVIII p aras 32 2 to 3 55 o f the Ra ilway Au dit Manu al sho uld be borne in mind . 4 3 2 . Spe c i a l p r o v i s i o n r e l a ti n g to c e r ta i n w o r k s ho p a u di t i te ms . T h e sa nct i o ns ac c o rd ed b y t he P re s i den t , R ai l wa y Boa rd , G e neral m an ag er and by au tho rities sub ordin ate to the Gen eral Man age r, Co mpletion Repo rts and Jo urna l Vou c he rs re la tin g t o Worksho p ma tters sho uld be checke d b y SO (A)/AA uo in addition t o 2 days wo rk prescribed in para 6-MOI(cf It em III und er Worksho p Au dit-MO I) 433. Audit of Sanctions. San ction s d ealt with in t he Worksho p Au dit Sectio n ge ne ra lly relate to a ddition s an d alte ra tio ns to Rollin g Sto ck, Plan t and Mach in ery. Sa nction s to th e propo sals o f Sale/h ire of rolling sto ck, su bsidy to th e can t ee ns et c. a re also de alt with in th e Worksho p Au dit Section s . The instruction s con t aine d in Cha pte r on Ge ne ra l Au dit Proced ure will ap ply muta tis mut atis to th e au dit of sa nction s re ceived in the workshop a udit section . Sp ecial a tten t ion sho uld b e given while aud itin g th e san c tions fo r p re matu re cond emn ation of carria ge s and wa go ns. It shou ld b e see n t hat a sta t emen t sh owin g t he compa ra t ive st udy o f t h e c os t o f r ep la c emen t of t h e a s s et s a nd t he c os t o f t he as s e t s and the cost o f re con ditio ning of th e sa me is in varia bly sub mitte d a s la id down in p aras 2 40-FI a nd 24 1-FI. Simila rly wh ile re vie win g th e sa nction s Principal Director of Audit, Central Railway 176 for sale of goo ds a nd coa ching sto ck it sho uld b e seen th at t he en tries in re spect o f con de mn atio n an d rep la c emen t in th e stat emen t prep ared b y the Me cha nical De pa rtme nt ha ve be en ch ecke d an d certified b y t he Accoun ts officers on the basis of history card s an d oth er re levan t re cords. Th e Sa le Re gister mainta in ed b y the Worksho p Accounts Officer should also be re ferred. 434. Audi t of Estimates. (p ara 3 32 o f RAM). Th e exte nt o f au dit for estima tes has been la id down in CA G ' s l e t t e r n o . 6 4 7-570-RAI/8-11/13 dat e d 5 . 3. 7 4( c f a l so it e m I I u nd er W or k s ho p Au dit - MO I ) Se l ec t i on o f estima tes fo r au dit sho uld be ma de from the re gister of estimate s ma in tained in Accounts office. The estima tes should be scrut in ise d in accorda nce wit h th e provisio ns la id do wn in the revised Mech an ica l Co de . I n t he c ours e o f aud i t o f est i m at e s f or a dd it i o nal R ol l in g St o c k , l is t o f s t o c k re duce d from t he au tho rise d list shou ld be refe rred t o an if it is fo un d tha t sim i la r it ems o f s t oc k ha v e b ee n re duc e d f ro m t he A ut h oris e d lis t i n t he pas t , i t s ho ul d b e s ee n t ha t t he c o s t of corresp ond ing a dd ition al stock n ow prov i de d h as b ee n a ll oc a t ed i n s u c h a m an ner t h at t he de bit t o c ap i t al on accou nt o f su ch sto ck d oe s not e xcee d the amou nt th at wou ld ha ve b een deb ited th ereto h ad th e stock kin que stion b een co nside re d in the first in stan ce a s re place d a nd n ot as re d u ce d f ro m t h e Au t h o ri se d l ist . 2. In the case of estimate for works for outsiders it should seen that the accep t an ce o f th e pa rties ha s be en ob taine d an d o n-cost ha s b een co r re c t ly t a k en i nt o a c c ou nt . O t h er e s t i ma t es s uc h a s re mo de ll i ng o f st ocks to suit t raffic purp oses and estima tes for ext ensive re pairs etc. sh ou ld be scrutinised carefu lly. 435. Audit of Com pletion Re ports : (para 334 RAM). Com pl et i o n R ep or t s sh ould be audited to the extent prescribed against item III in the Me morand um of Instruction s . The corre c tne ss of a pp ortio nmen t of charge s betwe en Capita l, DRF, Re ven ue etc. t he ad ju stme nt of freig ht a nd oth er ch arge s, th e cred its for the relea se d ma terials an d th e cre dits for su rp lu s st ores on h an d s ho ul d b e s pe c if i c al l y v er if i ed . Wh ile a ud it in g t he co mpletion rep orts for ve hicle s co nstructe d fo r oth er Go vernmen t De pa rtme nts e g.p osta l cars et c. it sho u ld be see n tha t th e Ca pital Co st is co r re c t ly en t er ed i n t he R eg is t e r m ai nt a i ned f o r t he p ur po s e of c al c ulat i ng the half-yea rly inte re st recove ra ble f ro m t he dep artmen t con cerne d. 4 3 6 . Sto r e s B i l l s a n d C on t r a c to r s F i n a l B i l l s . Stores Bills for purchase of sto re s re qu ired by Me chan ical an d E le c t ri c al W or k s ho ps a nd dea l t w it h in w or k s ho p a c c ou nt s o f f i c e a r e t o b e a ud it ed by wo rk s h op Au dit S ec t i on s t o t h e e x t en t pres c r ib ed f or au dit o f St o re s Bi l ls u nd er St o re s Au dit progra mm e. Co nt r act o r s Fin al bi l ls i . e . t ho s e r el at in g t o t he s pe c if ic j ob s ent ru sted to the con t ra ctors sh ou ld be ch ecked a s pe r ite m IV (1 5) o f Ce ntral Audit p ro gramme. Fo r t he purpo se o f select io n o f con t ra ctors Stores Final Bills for a ud it in W&S aud it se ctio n, on a ccou nt bills in re spect of p urchase of ste el a nd o t he r ra w ma terials for the manufacture of st eel slee pe rs ca rriage s,wag on s etc. sh ou ld be tre ate d a s fina l b ills. 437. Audit of Incentive bonus Bills: (pa ras 33 7 a nd 338 RAM) 1. The entire wo rksh op shou ld b e d ivide d int o su ita ble u nits a nd un its se lected eac h mo nt h t o t h e ex t e nt p re s c ri be d. T he un it m ay b e s o d ra w n as t o co nta in a re aso na ble nu mber of dire ct workers, indirect workers and su pe rvisors. In add it io n a ge ne ra l re view o f re cords ma inta in ed in the in cent ive Bran ch of the Accou nts O ffice sho uld a lso be un de rta ken yea rly Office Manual 177 to re view the system allowe d time,change in productivity due to the in cent ive sch eme in cid en ce of overtime in con ne ction with in cre ased in cent ive bo nus payme nts e t c. 2. Ext ent of Au dit. Th e ticket n umbe rs, n ame an d amo un t of th e wo rkmen sh ou ld be no ted in th e Selection Reg ist er. The following do cumen t s from wh ich Bo nu s Bills a re prep ared sho uld, b e a ud ite d to the exte nt possible . a. G ate Att end an ce Ca rd . Th is card sh ows t he da ily a tten da nce of the wo rkme n.L abo ur p ayshe ets as we ll a s a bsen t ee sta t emen ts a re prep ared fro m this ca rd . Mo nth ly wa ge s re b ase d o n the atte nd an ce reco rd ed on ca rd by the punching mach ine and h ence Gate Attendance card is treated as an d imp ortan t b asis docu ment a nd is re qu ired to be preserved for produ cing in the cou rt o f law a t a late r dat e if ne cessa ry. b. Jo b Ca rd. Th is card is issued a s soo n as the pa rticu la r job ha s b een und ertake n un de r the sch eme an d the se cards fro m th e ba sic do cumen t s f or c om pu t eri s at i on of t he Bon us . T he y con t ain f ull in formation ab ou t the jo b un de rta k en , q ua ntity man ufact ured, q ua ntity pa ssed in insp ection , st and ard time allowed , time taken an d profit ga ined or lo ss su ffered by the wo rkme n in te rms o f ho urs an d th erea fter in te rms o f mon ey. 3. The time allowed fo r nu mb er o f a rt icle is printe d on the ca rd . Alo n g w it h p r e p a ra t o r y t im e f o r t h e whole work, t he total time allowed sh ou ld be che cked by multiplying p asse d o ut-turn inclu ding ma terial re je c t s in t he f ou ndry an d d ef ec t ive ca s t i ng in t he ma c hi ne s hop w it h t he time allo wed for ea ch p lu s prep arato ry t ime. 4. Time ta ken fo r the wo rk sho uld be ch ecke d on th e basis of clo ck pun c hi ng f or in a nd o ut j ob c ar ds as well as Gate Att endance Card (in re spect o f ab sen ce) an d Id le time card (in respe c t of id eal time). This sh ou ld a lso be reco ncile d with th e reco ncilia t ion she et p repa re d for in div id ua l w o rk e r t o r ec o nci le t he t i me as p er t h e j ob c ar ds w i t h t he G at e Atte nda nce Cards. Thus time save d/lost should be checked wit h ref erence t o t im e al l ow ed a nd t i m e take n for th e jo b. Ra te for p ie ce work sh ould be ch ec k e d w it h re f er en c e t o t h e r at e o f pa y a s s h own o n t he G at e Atte nda nce Ca rd a nd rate p er h ou r prescribe d by the Board from time to t im e . 5. Sq ua d Summary Ca rd . Th is card is issued in th e n ame of lea ding h and of t he g r oup no mina t ed t o c om p le t e t he jo b j oi nt l y . Ea c h w or k er b el on gi ng t o t he g ro up p os s es s e s a j o b c ar d f or t he s qu ad w o rk. Eac h wo rke r i n t he sq ua d sh ares th e Profits / losse s on completion of the jo b in p re pa ra t io n to the time sp ent o n th e job . Squ ad su mm ary card is checked as job card s in add itio n to the ap po rtio nmen t of th e p ro f its. 6. I d le Time Card. So me t ime s , du e t o c e rt a in r ea s ons t he w or k i s he ld up f or w h ich w o rkm an on t h e jo b i s n ot he l d re s po ns i ble. F ol l ow in g a re a f ew in s t an c es in wh ic h id le t ime is bo oke d. 1. lack of material 2. l ac k o f t oo l 3. lack of power 4. waiting for work. 7. No soo ner th e wo rk is sto pp ed on id le time a ccou nt th e id le time pun che d in a nd af ter th e id le time is o ver it is pu nche d off. Su ch of the id le t ime is not taken into account while arriving at the t otal time taken for t hat part i c ul ar j ob and t he n t o t al t i m e t a k en is a rr i v ed a t . T he c ha rg em en Principal Director of Audit, Central Railway 178 and maistry are held respo nsible for b ooking o f idle t ime du e to lack o f ma terial, lack o f to ols an d wa it in g fo r work. While ch ecking the a bove docu ment s the followin g p oint s shou ld b e bo rne in min d. a) Job ca rd s an d squ ad cards a re a drema printe d a nd an y con v ersion th ereo n shou ld bea r rate fixers sig na t ure ove r his d esigna tion . b) Time san d ag ainst ea ch job / squ ad ca rd sh ou ld be restricted to 5 0% of th e time t aken as re corde d for the sa me jo b/sq ua d for e ac h c o m pl et e d o pe ra t io n. c ) No b on us is pa yab le to app re ntices. d) In th e ca se of Fou ndries the o perat io n care ma kin g an d mo ulding a re combine d. It is to be see n th at se parat e/sing le jo b/sq ua d is i s s ue d o nl y f or on e o pe ra t io n. 8. Id le time cards a re prop erly in itia ted by t he Produ ction Eng inee r and foreman in token of having satisfied th at b ookin g of such idle time wa s in evitab le . Ap po rtion ment in re spect o f squ ad cards is ma de on t he b asis of time ta ken by th e ind ivid ual worker fo r t he particular job . 4 3 8 . P i e c e Wor k B o n u s Bi l l . The prep aratio n of Bon us Bills ha s b een co m pu t eris e d a nd t h e p ro gr am m e c ur r en t ly b ei ng ru n on t he c om pu t er f or t he p ri n t in g o f in c en t iv e bills . T he s e p ri nt e d b il l s prov i de T ic k e t nu mb er, name , de sig na t ion, tota l time sa ved/ lo st an d amou nt of Bon us. The piece wo rk stat emen t a nd th e summary o f the p ie c e work sta t emen ts hithe rto don e m anu al l y i s not b ei ng p re pa re d no w w he re as al l i nt er me di at e prin tou t s sh owing th e d etails of jo b card s relat in g to a p articular ticke t number, time allowed, time taken, t ime saved, tot al time allowed, total time taken, total time saved should be ob t ai ne d an d t he j ob ca r ds t ra c ed i nt o the state me nts a s far as Direct wo rke rs a re con cerne d. As rega rd s in dire ct workers, a nd su pe rvisors wh o a re ent it l ed t o 8 0% of t h e a v erage percen t ag e o f b onu s ea rned by the direct workers se rve d b y the m the se ction wise p erforman c e sta t emen ts prep ared on the compu t er sh ow the total t ime allowed, total time ta ken , actu al time sa ved, actu al p ercent age etc. an d give the d eta ils o f t he job s a nd the wo rke rs in the se ctio n. To ve rify, the time taken in each section on in termed ia ry p rin t ou t showing the t ic k e t w is e d e t a i l s o f t i m e s a v e d i n e ach section in respect of the unit se l ec t e d s h ould be ob t ai ne d a nd c he c k ed w it h t h e j ob c ar d s t at e me nt and f ro m t he re , t he pe rc e nt a ge of b onu s pa y ab le t o in dire c t w or k ers v er i f ie d. 439. Bonus Bi lls for Maistries. Maistries are elig ible for 100% piece work profit b asis of ave ra ge pe rce nta ge of ne t prof it card b y th e d ire ct workers su pe rvised by th em. The list of ma istries att ache d to ea ch sectio n of a sh op a nd e nt i t l ed t o piece w o rk pro f it i s su pp lie d by t he Wo rk s M an ag er t o the accounts Office. This list should b e re f er r ed t o wh i le ch ec k i ng t he b i lls for maistrie s. Other checks la id dow n in regard to essential in dire ct wo rk ers will apply for the audit of bills of maistries. 4 4 0 . B o nus B i l l s f o r Cha r g e m e n. Ch arge m en a re el i gi bl e f o r 8 0% o f t he averag e p ercenta ge of the profit ea rn ed by the di re ct workers supervised by the m. List of charge men , as in th e ca se of ma ist ries is also su bmitted by th e Wo rks Ma na ge r to t he Acco unt s Office who are en title d fo r piece wo rk p rof it . Office Manual 179 2. While che ckin g th e Bills of maistrie s an d cha rgeme n th e fo llowing po in ts sh ou ld be see n i. t h at p ro pe r a dj us t me nt h as b ee n m ad e f o r t he id le t i me of Dir ec t Workers for lack of work or tools as p er scale la id do wn ii. t h at p ro pe r a dj us t me nt h as b ee n m ad e i n t he Bills of c harg em en fo r bad casting s du e to de fective supe rvision as p er state men t comp iled by each sect io n of the shop. iii. that t he reconciliation of Gate At t e n d a n ce Ca rd h as been carried out with job card s. iv. co rrectn ess o f ho urly ra te sh ou ld be che cke d 3. Th e fo llowing reviews sho uld b e co nd ucte d a nnu ally. i. Ca ses of abn ormal prof its a bo ve 5 0% o f the time ta ken o r at th e o t he r h an d losse s an d fu rn ish ed by th e Accoun ts Off ice r to Works Manager for invest ig ation ii. Cases of re je cts in foundrie s iii. R e v ie w of m an ag er ia l St a t emen t s an ds o t he r s t a t eme nt s iv. Assessmen t of in cre ase in prod uction an compa riso n of cost a s a re s ul t o f in t r odu c t i on of I n c en t ive Sch em es v . Re ason s for freq ue nt revision of a llowe d time 4. A test che ck of th e allo wed time an d re visio n ma de th erein sho uld be ca rried out in the Wo rks Man age rs' o ffice an d rea s ons reco rd ed , du ring in spect io ns. Co mpara t ive stud y of th e Allowed Time for the similar job in othe r Railway wo rksh op may be mad e an d f in ding s reco rd ed. Du rin g shop in spect ions, working of time clocks, punching system by the workmen, cu stod y of cards e t c. sho uld b e ch ecke d a nd segreg atio n o f ou turn o f in cent ive wo rke rs fro m t hat of o t he rs is prop erly d on e. Id le time bo oking sh o u ld b e v e r i f ie d t o s ee t ha t i t w as i ne v i t able . 441. Booking of overtime: T he R ai lw a y Boa rd ha v e i m pos e d a ba n on t he boo k in g o f o v ert i me in i n ce nt i v e S ec t i on s o f t he w o rk s h ops. Eve n f o r no nin cent ive section s , bo oking o f ove rt ime is to be cont ro lled to b e minimum pos s i ble pe rso na ll y b y t h e Wo rk s Ma na ge r. W hi l e a ud it i n g t h e in c en t iv e Bon us Bills it shou ld be see n th at n o o v ertime is bo oked in In cen t ive Sect io ns. 442 . Muster Rolls Ga te Attenda nc e Ca rds, Labour paysheets and Time shee ts (Para 33 6-RAM). Th ese sh ou ld be a ud ite d to the e x ten t prescribed in CAG' s let t er n o.6 47 -5 90 -RAI /8-11 / 73 d ate d 5.3 . 74 . Se e item (9 2) und er Wo rkshop Audit in the MOI. In Workshop, where t ime clocks are in use, gat e a t t en da nc e c ar ds t ak e t h e p l ace of m us t e r ro ll. F ro m t h e g at e atte nda nce cards, lab ou r p aysh eet s showing the na me , ticket n umbe r and othe r p articulars o f ea ch workme n a nd d ed uction s t o be ma de a re co mplete d in resp ect of the n umbe r of ho urs wo rke d, gross and n et wage s and ove rtime e arne d d uring t he mo nth . 2. Th e tot al h ou rs shown in th e gate a tte nda nce ca rd in re spe c t o f each wo rkma n sho uld a gree with tho s e sh own in the time shee ts which co nta in t he p ar t icu l ars o f wo rk o rd er s i n w h ic h t h e w or k m an w a s a c t ua ll y en gag ed . I t s ho ul d a ls o be s ee n t hat all peri od le ave w it h p ay an pa i d h ol id ay s a re co rrectly accounted for in the time sheets. Investigatio n in to the Principal Director of Audit, Central Railway 180 differen c es in the amou nt o f wage s for ea ch workman a s drawn a nd a s distribu ted amon g the wo rk orde rs is n ot ne cessa ry. If the d if f eren ce s co ntin ue to b e a bn ormal in an y p articular sh op , it shou ld b e see n tha t co mplete inve stig ation into th e d iff erence is u nde rtaken b y the Accoun ts office. 3 . G a t e A t t e n d a n c e Ca rd should be examined wi th refere nce to gate passe s, abse nte e sta t emen ts overtime re qu isition s, on time she ets, e t c. Particulars of lea ve recorde d in th e ga te a tten da nce ca rd sho uld be ve rified with re feren c e to t he le ave st a t e m e n t su b m i t t e d t o t h e Acco u n t s office. 4. The followin g checks should be exercised by visiting the shops co nc e rn ed . i. The meth od of b ooking labo ur ag ainst va rio us work orde rs sh ou ld b e c o rrec t a nd t ha t i ni t ia l re c or ds a re c or re c t l y ma i nt a in ed . ii. There should be a proper system of record in g la bourers entering th e sh ops, that a list of a bse nte es in th e va riou s sho ps is pre pared d aily fro m su ch reco rd , th at a list of abse nte es is prep ared by the fo re man o r oth er re spo nsible off icial fro m a n a ctual inspe ction o f l ab ou r emp lo y ed a nd t ha t t he se t w o l is t s o f abs e nt e es a re t al li ed with each other. iii. The a ccuracy of the time sh ee ts sho uld be ve rified by actu al co unt in g o f la bo ur. iv. It is fun da me nta l tha t su ch a proced ure is laid down fo r the che ck o f mu ster rolls and the pa yment of wag es, that the re spo nsibility o f e ach individu al ca n b e de fin it ely a lloca ted a fter t he eve nt, tha t there are adequate counter checks, t h a t t h e f u n c t io n s o f p re p a ri n g a nd ch ecking th e bills are alloca ted ind ep en den tly from the fu nction s o f d ea lin g in ca sh an d ma kin g pa yment s a nd th at the sta ff con c erne d a re cha nge d f ro m t ime to time. v. Payment of overtime is not admissible to staff who re getting ince ntive b onu s. He nce payme nt of o v ertime made in ad dition to ince ntive b on us sh ould be in vestiga t ed for au dit co mme nts. v i. Check of muster ro lls/gate attend ance cards with time sheets in resp ect o f ho urs bo oked ag ainst each man . vii. C he c k of in c re me nt g r ant e d w i t h in c re me nt s viii. Comp ariso n of g ate pa sse s with mu ster ro lls to se e th at th e time g ive n in the g ate pa sse s ha s p ro pe rly be en d edu cted in mu ster rolls/gate attendance card s. ix. Pro v ision o f payme nt of wag es th ereu nde r are n ot infring ed . Act-19 36 a nd rules made 443. Labour Paysheets. As re ga rd s, the a udit of L ab our p aysh eet s, the la bo ur pa yshe ets a re to b e checke d during th e in spect io n a nd tracing o f PF d edu ctions in th e d ed uction list an d PF led gers o f Accoun ts o f Sub scribe rs a re to be ch ecke d to th e exte nt p re scribe d o f t he e mployee s in clu de d in th e la bou r paysh ee ts du ring Cen t ra l Aud it . 444. Miscel laneous Advances and Deposit Mi scellaneous Re gisters .(p ara 36 3-RAM) In stru ctions fo r mainte na nce o f t hese re gisters, their reco ncilia t ion with Gen eral Boo ks a nd review of Su spe nse b alance s Office Manual 181 are con t aine d in pa ra graph s 316 -322 -A, 61 0-A,61 4-A,6 15 -A a nd 6 19 -A. Beside s instruction s given in pa ra 36 3 o f RAM sh ou ld be bo rn e in mind wh ile re vie win g th ese re gisters. 445. Workshop manufacturing Suspense Account.See ite m X (i) und er Wo rksh op Aud it -MOI pa ra 34 8-RAM an d Ch ap ters XIII an d XIV-W ma y be re ferred t o. All the transactions re lating to the manufact ure repair, works und ertake n in th e Railwa y Worksho ps are accounted for in the first in stan ce throu gh th e Susp en se he ad kn own as Workshop Ma nu factu ring Susp en se Accou nts. Th e de bit side o f t his Suspense head co mprises of amou nt exp en ded o n wag es pa id to be wo rkme n cost of sto re s u t ilised and fre ig ht man ufa ctured /repa ire d. The differen c e in th e two viz.th e ba lance , wh ich is a lwa ys a de bit bala nce, sho ws th e ma nuf acture d ite ms awa iting ac c ep t an c es , a nd als o a mo un t ex p en de d on w or k s i n p ro gr es s . 2. Th e ba la nce u nde r th is Susp en se hea d is recon cile d with th e Gen eral boo ks an d b alan c e u nde r Wo rksh op Gen eral Reg ist er. 3. The man ufa cture acco un ts sh ou ld b e che cked in d eta il eve ry mont h in ro tation so as to effe ct a comp le te ch eck of a ll th e man ufa cturin g a ccoun ts once in th e cou rse o f each year. Th e tracing o f vo uch ers (Rece ip ts and Issues) int o resp ective acco unt s may b e limit ed to the p ercent age prescrib ed of th e vo uch ers in ea ch ca teg ory (cf p ara 34-MOI) 4. The b alan c e un de r th e Workshop Manu factu re Susp en se Acco un t sh ou ld be r e v ie we d t o s ee i. th at all the items are curre nt an d have b ee n und ertake n afte r the i s s ue of p ro pe r w o rk o rd er s ii. th at th e ba lance con s ists o f no thing exce pt lab ou r,ma t eria l and works o n cost charge s e xpe nde d on u nfinishe d jo bs or co mp le ted job s awaiting ad ju stmen t. iii. th at th ere a re no cre dit items iv. t h at i n t h e c a s e o f jo bs u nd er t ake n f o r o ut s i de rs e s t i ma t es a re p re pared t aking into a ccou nt percen t ag e cha rg es re qu ired und er n otes and de po sits h ave be en ob taine d whe re ver du e. v. th at a djustmen t of overcha rg es a nd un dercha rges o f o n cost and m an uf a c t ures a re m ad e pe r io di c al l y v i. th at a ll b alan ces are efficient and curren t 5. Th e re view o f th e ba la nce s u nde r worksho p ma nu factu re Susp ense Accou nt sh ou ld be lin ked with th e review o f th e Worksho p Gen eral Re gister. 4 4 6 . W o r k s ho p G en e r a l R e g i s te r. See para 355-RAM and item IX (2) und er Worksho p Audit in the MOI. The Wo rksh op Ge neral Re gisters prepa red by the mach in e con t ains la bo ur, sto re s a nd o n-cost charge s se pa ra tely sho pwise, allocat io nwise an d tot al ch arge s for each wo rk o rd er. Th e au dit revie w is ren dere d difficu lt a s th e Wo rksh op G ene ra l Reg ister is prin ted mon t hly by the machin e co mp ute r (a s ag ainst on e co nso lida t ed docu ment sho win g t he prog re ss in tota ls fro m mon t h t o mo nth ). It doe s not sh ow the mo nth o f orig in of bo oking and tre nd o f bo oking o f expe nd itu re . As d ecided by th e CAG, t he a ccuracy of the Co mp ila t io n o f the Workshop Ge ne ra l Registe r shou ld be checked at the time of check of out-tu rn sta t eme nts and the review of Workshop G en eral Re gister sh ou ld Principal Director of Audit, Central Railway 182 be don e alon gwith th e re vie w of wo rksh op man ufa ct ure Susp ense balances.see para s 1620-W&1621-W) ( C AG ' s l e t t e r n o . 21 2 3 -1 6 2 1 -RAI / 8 -71 date d 3 . 7. 71) 447. Electrical Manufacturing Account. (Item X (ii) WA; MOI) The in s t ru c t i ons c on t aine d i n pa ra s 3 49 a nd 3 50 o f t he R a ilw ay Au dit Ma nu al sh ou ld be bo rn e in min d while checking this Su spense Account. 448. Classificati on of Labour. T hi s i s a ud it e d a nnu al l y t o t he e x t en t prescrib ed . As pe r mech an ise d proce du re la bo ur suble dge rs a s such a re not mainta ined b ut in formation in respe ct o f la bou r cha rges work o rd er wise a s we ll as sho pwise are sorte d ou t on th e machin e itself and in c or po ra t ed i n t he W or k s ho p G ene ra l Re gis t er. T he c he c k o f t he st ate me nts prepa re d fro m time /tally sh eet s will on ly en sure t he corre ct ca lculation o f time spe nt un der d ifferen t wo rk orde rs an d will no t ensu re the co rre ct va luat io n o f the t ime sp en t (mo ney va lu e). As su ch an in termedia ry p rin t ou t sho win g ticket wise de tails of la bou r tab ulation s in dicating de tails of hou rs and amo unt le ad in g t o th e to tal lab ou r charge s on a p articular wo rk o rd er in a sho p sho uld be obt aine d spe cia lly for the mo nth se le cted . The t otals for the work orde rs sho wn in th e print ou t sh ou ld b e t ra ced in to the lab our ta bu la tion s. As an inte rme diary p rint ou t as ind icated a bo v e is req uired to be ob tain ed, selectio n o f th e month o f aud i t s ho ul d b e a dv an c ed . 449. Classification of Stores (St ores su b-le dg er) (se e item ix (i) und er Wo rkshop Au dit in the MO I). This i s a ud it e d a nn ua ll y t o t h e e x t en t prescrib ed , a nd th e same mon t h is sele cted a s fo r th e check o f lab ou r sub le dg ers. Howeve r, co nseq ue nt on t he co mp ute risatio n, Sto re s su b-ledg ers are no t ma inta in ed . Th e mach in e summaries of d eb its a nd cre dits showing the sto re s charg es vou cherwise an d sho pwise are rece ive d mon t hly in Accou nts office an d this t akes the p lace of Sto res su b-ledg ers. The vo uch ers selecte d sh ou ld be traced into the ma chine summarised. 2. The stores vo uche rs rece ived in Accou nts of fice fro m the shop s re co m pa re d w i t h t h e d up li c at e c op ie s r ec ei v ed f r om t h e S t or es A c c oun t s office to ensu re tha t the qu antity o f stores fo r which d eb it is rise d ha s bee n corre c tly rece ive d and a llo cated a nd th at all th e vouch ers h ave b een taken into a ccou nt. Se pa ra te mo nth ly summaries sh owing d ebits and cre di t s of s t o re s c harg es f or e ac h s h op are m ai n t ai ne d w hi c h s e r ve t he purpo s e o f s ho pw i s e s t o re s s ub -l ed ge r. 3. While a uditing the sub -le dge rs the follo win g p oints sh ou ld be see n. i. Th e de bits of th e sto re s are correctly cha rg ed to the re spe ctive work-order ii. The debits to work-orders from t he ma nu f ac t u ri ng Ac c ou nt o f process shop and sawmill accoun ts are summarised in separate su bled ge rs. iii. Pairin g of issu e n ote s with the priced copie s is d on e. 4. M i s c el la ne ou s c harge s r ef e rred t o i n wo rk s h op c od e a re c la s s if i e d i n a se pa ra t e s t o re s s ub -l ed ge r. I t s h ou ld be en s ur ed t hat t he t ot a ls o f t he va rio us columns sho wn in th e summary su b-ledg er a re checke d with re ference to the following: a. d eb it s r ai s e d b y ot h er s ec t i on s , div i s io ns a nd f or ei gn ra i lw a ys b. issue from workshop manufacturin g accounts Office Manual 183 c . Write ba ck orde rs. 450 . O n-c os ts. ( s ee i t e m no s . I X( 3) a nd ( 4) u nd er W or k s ho p Au dit i n t he MO I a nd pa ra 346 -RAM-Apa rt from la bo ur a nd sto re s, th ere is a ce rta in type o f e xpen ditu re wh ich is co mmo n to more th an o ne sh op o r common to all shops(such as electricity water etc.) su ch items o f exp en diture a re terme d a s Ge neral o n-cost ch arge s. Exp end iture co mmo n to vario us job s but perta in in g t o o ne particular sh op has b ee n te rme d a s sho p o n co st. Sho p a nd Gen eral on cost ch arge s are co lle cted un de r va riou s stan ding onco s t work orde rs. A sh are o f th ese charg es is ad de d to th e p rime co st at a pre-de termin ed p ercen tag e o n d irect la bou r. To fa cilitate to dete rmine this pe rce nta ge in a dva nce, sho p a nd ge ne ra l on -cost s bu dg ets a re prepa red b efo re the start o f the fin an cia l ye ar on the ba sis of th e figu re s of on-cost exp en diture actu ally b ooke d du ring t he 12 mo nth s from Janu ary to Decemb er. Th e pe rce nta ge s a re t han wo rke d ou t in re la tion to t he to tal dire ct labo ur, sep arate ly for labo ur on -co st a nd st ores on -co st ta kin g into co nsi de ra t i on t he re le v an t f ac t o r s on wh i ch on - co s t b udg et i s b as ed . 2. It sho uld be checke d th at on ly su ch ite ms h ave b ee n ta ken into co nside ra t ion th at can no t be ch arge d to an y sp ecific jo b or wo rk. The actua l exp en diture take n int o a ccou nt f or prep aratio n o f o n-cost bud ge ts su ch as la bou r cha rg es of in dire ct la b ou rs et c . m ay b e v er if ie d f ro m t he co rre s pon ding in dire ct la bou r p ayshe ets. It sh ou ld b e see n tha t there is no ab no rma l fluctu ation in th e shop on-cost p ertaining to a sho p from ye ar to ye ar an d if so, the re ason s the reof ma y be re viewed an d reco rd ed . 3. In ge ne ra l, th e fo llowing point s sh ou ld b e kep t in mind while checking sh op an d g en eral on cost ch arge s. i. th at the pe rce nta ge s are re gu la rly reviewe d a nd rea sons for majo r flu ct uat io ns inve stig ate d. ii. t h at i t e ms t a k en in t o c o nsi de ra t io n f o r p re pa ra t i on o f on -co s t budget s have been correctly take n in accordance with the code rulings viz.Indian Railway Code for Me chanical Department(workshop code) and no item is left. iii. th at the wa ges of store s Kh alas is eng ag ed in ha nd ling ,stacking a nd cred its for p acking ca ses re turne d to stores are take n und er g en er al c ha rg es iv. Due effect of specia l contribution to PF and Gratuity to the w o rk m en ha s be en re f le c t ed on t he G e nera l o n- c ost p er c en t ag es . v. th e d iff erence s be twee n a c tual to tal e xp en diture on accou nt o f sh op or g ene ra l on -co st a nd tota l of the amou nt distrib ute d o ver th e va rio us work ord ers are a djuste d p eriod ica lly a nd hea vy o utsta nd in g ba la nce un de r this hea d is no t a llo we d to re main for long. 4 5 1 . P r o fo r m a o n -c o s t . Percent age ch arge s on a c co un t o f p ro f orma o nco st re leviab le o n ca pital works an d o n wo rks e xecut ed for oth er Ra ilways, oth er Gove rn men t de partmen ts, railwa y emp lo yee s an d p rivate bodies as laid down in para IX. Prof orma on-c ost budget is prepared well in ad vance to le vy the on -co s t p ercent age s. It shou ld b e se en tha t items for p re para t io n of bud ge t laid do wn in pa ra W h ave b een ta ken into co nsi de ra t i on . Principal Director of Audit, Central Railway 184 452. Di stribution of On-cost charges. After all t he sub-le dgers are poste d in the Worksho p Gen eral Registe r, the wo rks on -co st ch arge s, la bo ur a s w el l a s m at e r ia l, i n re s pe ct o f e ac h o f t h e w or k o rd er a re ca lculate d on the dire ct labo ur cha rg e s b ooke d a gain st ea ch work orde r, a t the pe rce nta ge ra tes fo r la bo ur an d ma terial in fo rce fo r each sho p and poste d in t he ap prop riat e co lumn of the Re gister. The to tal wo rks on co st ch arge d t o va riou s work o rd ers at the pe rce nta ge are boo ked as cre dits und er the o n-cost work o rd ers. Th e diffe re nce b etwee n th e de bits and cre di t s u nde r t he o n c o s t o rd er s i s a dj us t e d u nd er t h e f in al h ead o f accou nt i.e . ove r a nd un der ch arges on co st. 2. Th e calculat io n ma de fo r the mon t h in arriving a t th e amou nt of on co st to be ad ded to th e e x pen ditu re on e ach wo rk o rder sho uld b e ch ecked . Th e po stings in the re gister ma in taine d by th e Accou nts Off ice to colle ct the a ct ual on co st ch arge s a nd the adjust me nt of th e over and und erc ha rg es on -co s t t o re s pe c t iv e abstracts B & C should be checked ann ua lly. 453 . Out-turn Sta te m ents ( pa ra 3 56- R AM ) . T he ou t -t ur n s t a t emen t i s prepa red in acco rd an ce with para s 1 60 5-W to 1 61 4-W a nd in fo rm W-16 05 . Th e state ment is prep ared in two pa rt s . P ar t I s ho w s t h e e x pe nd it u re boo ked b y the co mplete d work orde rs a nd p art Ii sh ows exp end iture on wo rk orders in progre s s an d a lso on tho se co mplete d a nd awa iting adju st me nt s . T hes e t wo p ar t s s ho w t o t al o ut - t u rn t o e nd o f ea ch mo nt h . De po sit works are to be sh own in p art I sta t emen t. Th e workshop out tu rn re gis t ers are re c on ci l ed w it h t h e f i g ur es i n t he G en er al B oo k s . T he postin g in th e o ut tu rn state ment of th e ch arges f or the month ag ainst each wo rk o rd er sho uld be compa re d with th e figu re s ap pe arin g in th e che ck sh e e t s . 2. W hi le au dit in g o ut t u rn s t at e me nt s i t s ho ul d b e s ee n t h at t h e a dj us t m en t of th e o utlay is effe cted promp t ly b y transfe r of th e a mo un t s to division s, othe r d epa rt me nts an d oth er railwa ys o r by ad justing th e amou nts to the app ro priate fina l he ad of acco unt as the case may be . Th e fig ures sho wn in pa rt II state men t on acco unt of a moun t a wa itin g a djust me nts sh ou ld be aud ited to se e tha t t here a re n o cre dit en tries, the re is no o utlay on job s prio r t o i s s u e o f w or k o rd er a nd t ha t t h ere a re n o c o mp l et e d j ob s outst and ing. 454. Workshop Account Current. (see para 357-RAM and item IX(6) und er Wo rksh op Au dit MO I) All tran saction s p ertainin g to workshop ma nu f ac t u ri ng o f S us pe ns e a re c o nsol i da t ed i n a s t at e me nt k no w n a s Wo rksh op Acco un t Current prep ared in form W-161 6. Th is is pre pared se para tely for each workshop. This acco un t curre nt with sh ow the ope ning bala nce,t otal de bits, tota l cre dits du ring th e mon t h an d clo sin g ba lance und er wo rksh op ma nufa cturing su spen se, un de r th e vario us he ad s o f accounts. 2. After compilation of the Workshop Acco unt Curren t jou rn al ent ries of all ca pita l an d re venu e tra nsa ctio ns affe cting worksho p ma nu factu ring su spe nse accou nt are p re pa re d mon t hly fo r in co rporat io n in t he Gen eral Books. 455. Reconciliati on of monthl y account current of stores with subledgers. (se e item IX(7) un de r Wo rksho p Aud it MOI Paras 3 42-3 43 o f RA M ). T he t ot a l d eb it a nd c re di t t o w or k s ho p m an uf a c t uri ng S us p ens e Accou nt in dicate d in the Sto res Accou nt Current should be reconciled with Office Manual 185 the to tal of the re spect ive su b ledg ers. Th e reco nciliatio n sho uld be ca rried o ut acco rd in g to th e det aile d instruction s in p aras 80 5,8 06,8 09 , and 81 9-W. It sho uld b e se en t hat the pairin g o f issue n ote s received from the sho ps with th ose with th e da ily su mma rie s from th e Sto re s Accoun ts office is b eing don e. 456 . Transfer s ta te m ents or Mema -(item IX (8 ) u nd er Wo rksh op AuditMO I. Pa ra 35 9-RAM) Tra nsfe r sta t eme nts/mema are p repa re d wh en the co s t of St o re s i n it i al l y boo k ed u nd er a wo rk o rd er i s t r ansf e rre d t o an ot h er wo rk orde r. Suc h a dj us t m en t s a re s u m ma ri s e d i n a S epa ra t e s t ore s s ub le dg er vide p ara 82 3-W. Tran sfer st ate me nts sho uld be scrut in ise d du ring the aud it of out turn sta t eme nts a nd Accou nt Cu rren ts. Th e fo llowing poin t s sho uld b e se en wh ile scru t in g th e t ra nsfer sta t emen ts/mema. 1. 2. 3. 4. 5. 6. Tha t th e e x plana tion furnishe d fo r the tra nsfe r is rea s ona ble. T ha t s an c t i on of t h e co m pe t en t au t ho ri t y h as b ee n o bt a in ed f or th e work to which th e co st of sto res is de bited . th at t he tra nsfe r state ments/ me ma a re sign ed by t he Gaze tted o f f ic e r. th at th e stores ca n re ally be use d o n th e wo rk to wh ich it is tran sferre d. t h a t t h e a ll o c a t i o n is c o rre c t th at de bit a nd cred it are correctly p oste d un der the releva nt work o rd er s . No t e. T he t ra ns f er s t at e m ent s of l ab ou r c ha rg es s ho ul d be s c r ut i n ise d in the same manner. 457 . Advic e notes of Re turned Store s. ( I t e m I X ( 9 ) W A- MO I . Pa ra 3 4 1 RAM & 15 39 to 154 8-S) In add itio n it sh ould be seen tha t i. t o t al v al ue of r e t ur ne d s t o re s as s u mma ri s ed in t he c r edit s t o re s sub -le dg ers ag re es with th e mo nthly Abstract o f Rece ip ts receiv ed from the Stores Accounts of fice. ii. All Ds8s ha ve b ee n a ccou nted fo r in th e mo nth of issu e excep t those re la ting t o the last days of the month; and iii. th e rea s ons for re turnin g sto re s are co nvincing . 458. Review of Maj or Works undertaken i n Workshops. Review of major wo rks costing ove r Rs.50 lakhs shou ld b e und ertake n by t he workshop aud it sect io n. The sch emes of in cre a ses in capacity in the workshops the ma nu factu re of wag on s,coa ch es,co mpon en ts for locomo tive s, cra nes,p erman ent way mate ria ls co stin g o v er Rs.50 lakhs sh ou ld be re v ie w ed on t he l in es o f r ev i ew o f m aj o r works. Such schemes should be re vie wed taking into con sid eration th e a nticipa ted in cre ase in t he ou t-tu rn and the out -t urn actually achieved. (CAG ' s l e t t e r n o . 647-590-RAI/8-11/73 dtd 5.3 . 74 ) 459. Work Orders. Se e ite m no. XVI un der Wo rksh op Au dit in t he MOI Par as 3 44 -3 45 -R AM a nd C h ap t er X-W. T h e w o rk o rd er s t es t c h ec k ed during th e cou rse of the ye ar sho uld comprise work o rders exe c ute d in each of th e sh op s and no t con f ined to t hose exe c ute d in p articu lar shop s only a nd sh ould be o f d if f eren t ca tego rie s viz.stan ding work orders, re pa ir wo rk orde rs , work o rd ers f o r wo rk do ne fo r oth er d ep artments of the Ra ilway, work do ne for p rivate b odie s or ot her g ove rn me nt dep artmen ts, wo rk o r d e r s f o r b ig w o r k s e t c . Principal Director of Audit, Central Railway 186 2. The fo llowing po in t s s h o u l d b e se e n . i. the work order is issued only a fter the estima te f or the work has b een san c tio ne d whe re ne cessary an d fu nd s have be en p ro vided to me et th e cost a nd t hat t he se ries o f work orders issued for sta ndin g works or works o f re currin g na ture are su ita ble. ii. Work orde rs are n ot close d b efo re all charg es pro perly de bitab le to a work ha ve be en b oo k ed a ga in s t it and afte r a work orde r is comp le ted an d close d n o e x pen ditu re is b oo k ed . iii. U nd er a nd o v erc harge s i n r es p ect of c om pl et ed w or k o rd er s a re a dj us t e d t o f in al h ea ds of account s without dela y and such v ar i at i on s bet we en t he e s t im a t ed a nd t he a c t ua l c os t o f m an uf a c t ure a nd a dj us t ed i n t he ac c ou nt s o f t he y ea r i n wh ich t he work orde rs a re re po rte d a s complet ed to avo id misclassification o f exp end iture, se e p ara 1 04 5-W. iv. there is no credit outlay outstandin g on work orders. v. t h at i n r es pe c t o f w or k o rd er s f o r p r iva t e j o bs n o add i t io ns and a lte ra tions to work orde rs are made witho ut the a pprova l of the a ut ho r it y w ho s an c t io ne d t h e o ri gi na l w o rk o rd er an d t h at t h e on cost charges are correctly levied in accordance with para 1225-W. see pa ra 12 17 -W. vi. In cre ase of milk t ank wa go ns, th e wo rk o f ove rh au lin g is u n d e rt a k e n a f t er t h e re ce i p t o f su f f ici e n t Se cu ri t y De p o si t . 460 . Rec ove ry of inte res t charge s. O n the capital cost of the Postal Van s -Ru le s c o nt a in ed i n r el e va nt p ar as in t he r ev i s ed me c ha ni c al C ode wh ic h gov e rn t he i nc i d ence of t he c o s t of po s t al v eh ic l es o r pa rt s o f ve hicles p rovided b y th e ra ilway to the po stal d ep artmen t. The po stal dep artmen ts ha s to p ay inte re st on the capita l co st of the complete ve hicles or parts of ve hicle , so long as t he y re ma in in t he e x c lu s i ve use o f the post al de partmen t an d h ave no t be en formally su rren de re d. 2. The ca pital cost o f posta l va ns for the purpose of recovery of intere st will be the all incost as detailed in pa ra 12 24 -W. Th e cap ital cost o f the posta l portion of th e n on -p osta l ve hicle s will be worked out in prop ortio n to the floo r area of the p osta l po rtio n. Th e all in cost of sp ecial fitting s prov i de d f or t he e x c lu s ive use o f t h e Po stal Depa rtme nt will be a dd ed to this. 3. It sh ould be se en tha t the Re gister o f Bills a nd o t he r re cords mainta ined in th e Acco un ts o ffice con t ain th e up to dat e list of a ll po stal ve hicles with their ca pital cost. In ca se of do ub t, t he Reg iste r o f Ro lling Sto ck ma in taine d b y th e Chief Mech an ia l En gine er shou ld be re ferre d to, to ch eck t he corre c tne ss of t he list o f po stal ve hicle s ap pe arin g in the Wo rk s h o p A c c o u n t s O f f ice rs re co rd s. I t s h ould be se en t ha t t he bi l ls a re co r re c t ly i s s ue d ha lf y e arly o n t he basis of capital cost meted in the re cords (correctness of the capital cost i s ve r if i ed d ur in g t he c h ec k o f co mpletion repo rt). 461 . Rev i ew of statistic s of Periodic al O verha ul. (PoH an d co st of u nit Re pa ir.The u nit co st sta t emen ts a re co mp ile d by th e Wo rksh op Accoun ts Officer with refe rence to th e exp en diture b ooke d a gain st t he sta nd in g work order for rep airs o f va riou s ca teg orie s o f rolling stock an d the mo nth ly ou t turn statement of locos, carria ge s an d wag ons (PoH an d o t he r rep airs) Office Manual 187 prepa red by t he Wo rks Ma na ge r and o t he r re pa irs) prep ared by the Works Ma na ger/Chie f Mech an ica l En gine er. The s e sho uld be reviewe d on the line s indicat ed in pa ra 36 4 RAM) 4 6 2 . Sa w M i l l A c c o unt. ( Para 3 51 -R A M a nd Ch ap t er XI V -W ) Sep ar at e wo rk orders a re issued fo r b oo kin g th e co st o f ea ch kind of timb er. Ch arge s wh ich can no t be dire ctly a ttrib ut e d t o an y p ar t i c ular k in d o f t i mb er will be co lle ct ed un de r a ge nera l work ord er. The ge ne ra l op eratin g co sts thus collecte d are distrib ute d on th e ba sis of th e cub ica l co nte nts of ou t turn of each kind of t imbe r c ut i n e ac h mo nt h . 2. The d ebit side o f th e man ufa cturin g acco un t co mp rise s i.cost o f uncu t wo od at the en d of p re v ious mo nth 2 . cost o f u ncu t woo d d rawn during the mo nth an d 3.cut t in g ch arge s tran sferre d f ro m the op erating a ccoun t. It is cre di t ed w i t h t h e c o s t of s c an t l in gs r ea li s ed at r at e s f ix e d p er io di c al l y b y the Worksho p Acco unt s o ffice and of off cu ttin gs saw du st and un cu t wood at th e close of t he mo nth . 463. Foundry Account (Chapt er XIII-W and para 352-RAM)Th e cost of ma nu f ac t u re o f s pa re p ar t s a nd r ol li n g s t oc k c o m pon en t s c an be ascertain ed only o f the costing of in divid ua l parts is commen ced from the st age of r ou gh c as t i ng s and c ar r ie d t h ro ug h t o t ha t of f i nis he d p ro du c t s . Fo r th is p urpo s e, de tailed foun dry acco unt s a re ma inta in ed to asce rta in t he co s t of ro ugh c as t i ng s . T he proc e du re f ol l ow ed in t he f ou nd ry i s brie fly in dicate d b elow. 1.sta ndin g work o rd er for met al an d me ltin g su spen se wo rk orde rs a re ope ra ted fo r re cording th e e xpe nditu re on meta l an d me ltin g. These ch arges will be include (i) cost of metal (ii) cost of fue l includ ing freigh t (i i i) c o s t of l im es t one a nd ot h er f l u x (i v) cost of repairing cupolas (v) cost of blast an d re pa irs to the b la s t plan t (vi) cost of rep airs to lad le and cu po la eq uipme nt ( v i i) c os t of l ab ou r f or c ha rg in g t he c up ol as a nd f or ca rriage of ra w material (viii) cost of purrin g metal into mo ulds 2. Sep arate sta nd in g work ord ers are op erate d in t he iro n fou ndry and brass fo und ry for bo oking the ab ove expe nd itu re. 3. The fo llowing ch arge s are allocate d to Fo un dry sh op o n cost work orders. i. ii. iii. iv. v. vi. c os t of r ep ai ri n g m ou ld i ng boxe d a nd t oo ls cost of d rying crores a nd mo ulds fu el for a nd re pairs to co re ove r a nd ap pliance s] cost of p ro curin g a nd mixing mou ld in g sa nd s and bin ders m i s ce l la ne ous st ores u s ed g en er al l y in t he F ou nd ry s h op c os t o f d ef e c t iv e p ro du c t s w h en i t is no t c h arge d t o i nd iv i du al jobs. 4. For cert ain class of castings wh ich are extremely liable to defects, defe c tive castin gs are a llo cate d to the jo b inste ad o f to o n co st. Cre dits for no n-ferrou s bo rin gs a rising ou t o f mach ine op eration s o f fo und ry items are a fforde d to the brass fo un dry an d n ot th e ma chine shop on cost. 5. Ind ividu al wo rk orde rs are issue d for a ll manu factu rin g work u nde rtaken in t h e f oun dry . T he l ab ou r c ha rg ed f o r mo uldin g a nd c o re m ak i ng a re ch arge d to the in divid ua l jo b orde rs. Th e to tal cha rg es reco rd ed und er st and ing work o rd ers fo r the d if f eren t meta ls are distribute d ove r the Principal Director of Audit, Central Railway 188 va r io us jo bs un de rt a k en o n in div i dua l j ob o r ders in d i re c t p ro po rt i o n t o t he we ig ht of th e met al bo oked ag ainst each job during the mo nth . 6. A mont hly sta t eme nt of ou t turn sho win g the in p ut an d ou tpu t is po sted dai l y f ro m t h e da ily lo g an d ad v ic e s o f r e t ur ne d St o re s a nd s u bmi t t ed b y the Wo rks ma na ge r t o th e Accou nts o f f i c e . T h e o u t t u rn s t a t e m e n t i s ch ecke d in th e Acco un ts office with ref erence to th e issue vouch ers accou nte d for the re in an d comp le ted in re spect of total cost of the melt for the mo nth , wh ich will be th e to tal de bit for the month . This amou nt is distribu ted a mong th e work o rd ers fo r which casting s h ave be n made during t he mo nth in p ro po rtio n to th e a c tua l o ut tu rn . The f oun dry ac c ou nt s sh ou ld b e c h ec k ed o n t h e line s i nd ic a t ed i n p ar a 342 o f R ai l wa y Aud it Ma nu al. 464 . Job Costing. (X I W i t e m X I X - WA -M O I a n d p a ra 3 4 7 -RA M) . T h e obje ct of job cost in g is a) to co mpare th e costs of simila r article s ma nu f ac t u re d f r om t i me t o t i m e i n t h e w or k s ho ps a nd f in di ng ou t re as on s f or v ar ia t i on in c os t s b ) t o c om pa re t he cost of articles manufactured in the wo rk s h op s w i t h t hose m a nuf a c t ur ed o n ot h er r ai l wa y s o r wit h t h e ma rk e t price of simila r a rticles. Jo b co sting will also h elp in a. che cking employe es to see tha t the y yield fu ll se rvice b. e ns ur i ng t ha t w as t e is p re v en t ed or m in im i s ed c . u t ilisin g th e man ufact urin g cost fig ures asce rta ined as a g uide for f u t u r e t ra n s a c t io n s a n d f or t h e co rre ct a ll o ca t io n o f t he e xp en di t ure in c ur re d. 2. T he e s s en t ia l f e at u re o f t he j o b c os t i ng s y st em is es t im at in g i n ad v ance of t he time th at shou ld b e spen t o n ma terials th at shou ld b e used a nd the syst ematic co mp arison of the resu lt s of actu al p erforman ce with such e s t i ma t e s . T h e i n s t i t u t i o n o f a n y d et a ile d s y s t e m o f c o s t i n g i s t h u s co ntin gen t up on th e initial fixa tion b y suitab ly traine d te chn ica l sta ff of/sta nd ards of time a nd of mate ria ls fo r th e items of wo rk t o be und ertake n a nd fo r th e pro mp t compa rison of th e stan da rd s thu s se t with the actu al re sults ob tain ed. 3. In th e ca se of items man ufa ctured in th e railway worksho ps, the maxima and minima stocks are fixed taking in to consideration the length of time re quired b y the wo rksh ops to de al with t he req uisitio n pla ced b y the sto re s dep ot s . U po n t h e d epo t s s t oc k o f an i t e m d ro pp in g t o t he l e ve l o f t he minimum, a req uisitio n in fo rm S143 7 is prep ared in trip licate (vid e pa ra 143 75 ) one co py o f which is sen t to worksho p p ro du ctio n de partmen t. No articles may be manufactured in railway wo rkshops for stock purposes with out a re quisition for su ch a rticles b eing p la ced by the Sto re s De pa rtme nt a nd app roved by th e Wo rks Man ag er. 4. Th e ma nu factu ring act ivity is su ita b l y d iv i d ed in t o dif f e re nt kin ds o f j ob orders e.g. ma nu factu re o f loco d up lic at e, ma nu factu re o f ca rriag e and wa go n d up licat e, ma nu factu re of misce ll an eo us f itting s e t c. a nd ea ch kind of jo b o rd ers is re prese nte d by a co nt rol wo rk order. Separate sub-work orders, und er e ach of the Con t rol workorde rs, re issue d by the Prod uction Co ntrol(in th e fo rm o f Ro ute Cards) for e ach individu al work to be d one and no e x pen dit ur e s ho ul d b e i nc u r re d b y t he s ho p u nt i l a s ub -w or k o rd er for the work con cerned ha s be en re ceived . 5. The serie s of th e con t rol wo rk o rd ers are revised afte r e v ery ha lf ye ar and a ll cases of sub -wo rk orde rs re ma ining un comp le ted fo r mo re t han Office Manual 189 three mo nth s afte r th e o ld serie s ha ve be en re vise d, will b e list ed b y the Jo b co sting section an d rep orted to the Works Manager for taking special st eps for th eir co mpletion . Whe ne ver it is de cid ed to t ake up manu factu re of an article , a p ro c ess she et is pre pared by th e p la nn er. This is th e b asic re cord of ma nu factu re of a ny article . The process sh ee t will in dicate det a i ls o f t he o pe ra t i ons r eq ui r ed t o ma nu f ac t u re t he art ic l e in t he ir se qu en ce. Aga inst e ach op eration , th e ope ra tion nu mb er, th e shop numb er a nd t he s e c t io n in w h ich t h e o pe ra t i on i s t o be d on e a nd t h e c ode of the mach ine will be indicated. After check by the processing section, the process sh ee t is forwarde d t o t h e R a t e F ix i n g Se c t io n . 6. Th e rate fixers fill in th e nece ssary info rma t io n re gardin g p re pa ra t ory allo w anc e a nd a ll o we d t i me . T he A dr em a s ec t i o n emba s s es t he a dr ma plate d fro m th e proce ss sh ee t fo r su bseq ue nt printing o f facto ry forms. Th e p ro cess she et is th en f illed in th e Plan ning Office. Wh en eve r an y ch an ge in the proce ss o f man ufa cture is de cid ed it is no ted on the re levan t process sh ee t indica tin g th e a uth orit y and th e rea s ons f or the cha nge . 7. The Prod uction of fice of th e wo rksh op an d th e Accoun ts o ffice will use the followin g f orms for the implementation of the costin g system. i. Route Card . this is the authorit y for the Workshop to undertake a ny w or k o f ma nu f ac t u re . Th e R ou t e c ar d i s i s su ed f or eac h e c ono mic b atch an d b ears a ll releva nt p articu lars. Wh en the article i s f in al l y f in i sh ed an d s en t t o t h e s t o re s , t he ro ut e c ar d w i ll be sent to the costing section thro ugh the process of fice. ii. Jo b cards/Squ ad Ca rd s.The se are th e prod uctio n do cumen t s e mb od y in g t he pa rt i c u la rs of dif f er en t c a t eg or ie s o f l ab ou r bo oked to the p articular wo rks o rd er. On co mp le tion o f ea ch op eration th ese are sen t to th e co stin g section (throu gh th e in cen t ive b onu s s e c t io n ) . iii. Pro c essing time stat emen ts. Th is state me nt is used whe n a job ta ken up du ring th e mon t h is ca rried forward t o th e n ext mo nth . This sh ould be prep ared for bo th jo bs in p ro gress a s well as job s which are su spen de d. iv. C os t s he et . T he c os t s he et c ov e rs t he w ho l e f ie ld o f r ec o rd o f p ro du ct iv e ac t i v i t y . T he e nt i r e p ro c es s of a p ro duct i o n o rd er in th e way of co nsump t io n o f mate rial a nd the chargin g o f la bo ur an on cost is re flected in the cost sheet. The cost of each jo b is a scertaine d th ro ugh the cost she et wh ich will b e o pen ed by the Pro duct io n Co ntrol a t th e time of issu in g produ ction do cumen t s l i ke ro ut e c ar ds , m at e rial r eq ui s it i o n et c . T he mo nt h l y e x pe nd it u re o n l ab our, m at e ria l a nd o n c o s t an d a ls o t he c re di t r ec ei v ed f r om th e St ores Dep artment f or the scra p a nd ma nuf acture d article s retu rn ed to sto re s de pa rtmen t are poste d fo r each mont h b y each sh op. As soon a s the su b wo rk o rder is co mp lete d a nd the c o mp le t ed r ou t e c a rd s a re r ec e iv e d i n t h e co st in g se ct i o n . T h e to tal exp end iture incu rred fro m the co mme nce me nt o f the job to t h e c om pl et io n w il l b e t ot al le d up a nd t h e un i t c o s t of ma nu f ac t u re w or k ed ou t . T he un it r at e s ho ul d b e a pp ro v ed b y t he W or k s hop Accounts Officer and posted in the re le vant cost card s. 8. Cost of manu factu re in resp ect of ea ch of th e wo rksh op man ufa ctured st ock item should be worked in th e first in stance and the ra tes thus Principal Director of Audit, Central Railway 190 determined, should be notified in repla c e m e n t o f t h e e x ist i n g r a t e s . A f t e r this, job costing of each workshop manufactured stock item should as a ru le , be do ne on ly o nce a ye ar sub je ct to t he excep t ions sp ecified be lo w. a. Cost of ma nu factu re sh ould be worked o ut on ea ch an d e very occasion in respect of such of t h e wo rksh o p m a n u f a ct u re d i t e m s a s are e x t re me l y liab l e t o de f ec t s . b. Cost of manu factu re sh ou ld b e worked ou t e v ery time the met hod o f ma nu f ac t u re i s c ha nge d. 9. Mate rial Req uisitio n. Th is is use d f o r d ra wi n g m a t e ria l f ro m t h e St o re s and a fter ackno wle dg emen t b y th e sho p foreman is sent to th e Sto re s. Af t e r p o s t i n g t h e n u me r ic a l l e d g e r, t h i s i s s e n t t o t h e A c c o u n t s o f f ic e . 10. D e bit T ra ns f e r S he et s . I n c as e a ny m at er ia l d ra w n f o r a part i c ul ar w or k order is tra nsfe rred to a no t he r work orde r, a de bit tran sfer she et is prepa red a nd sen t to Accou nts o ffice fo r ca rrying out ne ce ssary adju st me nt s . 11. Waster She et. Th is is use d f or acco un tin g the re jecte d ite ms du e to defect in the raw material etc. 12. Re turne d Stores note . This is use d f or re turnin g th e ma nufa ctured ma terials to Stores. 13. Cost Card (W-1141). This is used for re cording the unit cost arrived at on re pe ate d ma nu factu re o f th e sa me ma terial. The est imate d cost with deta ils o f lab our a nd ma terial re also in dicate d o n th is ca rd . 14. Th e cost sh ee ts a nd the co nn ecte d do cumen t s sho uld be scru t in ized to se e t hat : i. L abo ur cha rg es ha ve b een bo oked by th e sh ops req uired to p erform ope ration s as men t ione d in the ro ute cards. ii. Mate ria l charge s, wh erever n ece ssary ha ve bee n bo oked b y the s ho p proc e s s in g t he f i r s t o pe ra t io n. Adj us t me nt f or t he o f f -c u t s o r s c r ap , w he re v er ut i l is e d h as b een m ad e w he re r equ i re d. iii. L abo ur a nd ma terial cha rges have n ot b ee n b oo ked by sh op s no t men t ione d in the ro ute cards. iv. The q uan tity pa ssed by the Insp ecto r in the fina l op eration ha s b een a cknowled ge d by t he Sto re s Dep ot by suitab le e nd orsemen t d on th e rou t e ca rd and tha t ne cessary credit fo r th e ma nufa c tured a rticles sup plie d to th e Stores Dep artment h as b een affo rd ed b y t h e S t o r e s A cc o u n t s o f f ic e . v. The re are no d iscre pan cie s be twee n th e n umbe r o f article s a ct ually comp le ted an d sent to stores a nd th at f or which charge s h av e be en b oo k ed on t he s u b-wo r k o rd er a nd t h at t h e w ei gh t o f r aw m at e r ia l obt a i ned f o r t he s ub -w or k o rd er i s no t o ut o f p ro p o r t i o n t o t h e we ig h t o f t h e a rt i cl e s se n t t o st o re s. vi. Ab no rma l wasta ges are valu ed an d cre dit affo rd ed to t he work o rd er by d eb it i ng t he on c os t . vii. Ab no rma l r ej ec t i on s o f m o re t h an 5 % t o t he t o t al numb er a re t o b e m ai nt a i ned s ho ul d b e c h ecke d to the exte nt p re scrib ed. Office Manual 191 465. Accounts Custody & Di sposal of Scrap Material (para 3 26 -RAM). Instruction s con t aine d in pa ra 3 26-RAM sh ou ld be b orne in mind while aud itin g the se acco un ts wh en scrap is dispo s ed o f by sid e by th e Sto re s De pa rt m e nt s d ir e ct ly f ro m t he w or k s ho ps t h e m e t ho d o f a c co un t al a nd t he arra ng emen t for the remova l o f scrap b y th e pu rchase rs sh ou ld be specially examined. 466. Recovery of Non-fe rrous turnings/borings fr om shop floor. I n order to en sure that the railwa ys do not suf f er losses on account of short co lle c tio n of bo ring s a nd turn in gs det a ile d in stru ctions ha ve be en issued by t he R ai l wa y B oa rd f o r r ig ht e nd in g up of a rr an ge me nt s f or t he c ol l ec t i on of n on -fe rrou s tu rn in gs a nd bo rin gs vide th eir le tter n o.6 9/M(w)9 64/ 103 date d 31. 1.70 . It ha s a lso be en laid d own tha t th e h ea dq uarte rs o ffice o f each ra ilway sho uld ob tain from all wo rksh op s a qua rterly sta t emen t sh owing t he p ercent age of re cove ry of n on -fe rrou s boring s/turning s. In ca s es w he re r ec o v er y i s lo w, t h e m at t e r is r eq ui re d t o be p ro m pt l y in vestiga t ed b y th e Railwa y Administra tion. It shou ld be se en th at the deta ile d instruction s la id d own b y t he Railway Bo ard are fo llowe d for the re covery an d dispo s al o f no n-ferro us tu rn in gs an d b orin gs. The se items sh ou ld be scrutinised yea rly du rin g insp ection of sh op s. 467 . Records of Rolling Stoc k (para 3 61 -RAM).The ro lling sto ck re gisters are ma in taine d in the Chie f Mech anica l Engineers' office. This gives the f u l l h is t o ry o f e a c h it e m o f Ro l li n g stocks viz. locomotives, carriages & wa gons. This gives t he full history of each item of ro lling stock viz. lo comotives, carria ge s & wago ns. Th ese re cords sho uld be au dited in the ligh t o f instruction s g ive n in pa ra 3 61 of RAM. It sho uld be see n t hat the re c or ds o f ro ll i ng s t oc k f ur ni s h a ll t h e d et a ils r eq ui re d f o r t he prep arat i on of th e various sta t eme nts men t io ne d in Cha pte r XV-W. Th e record s sh ou ld be ch ecke d to se e th at th ey a re up t o da te a nd show a ll ad dition s and co nd emna tion s and the results o f the l a t e s t c e n s u s o f t h e s t o c k . 2. I t s ho ul d b e s ee n t ha t al l sa nct i o ns of t h e R ai l wa y Boa rd an d t he Gen eral Ma na ger for co nd emna tio ns, ad dition s a nd rep la cemen ts of ro lling st ock are d uly po st ed in th e reco rd s of Rollin g Stock. Ad dition s and dele t io ns o f go od s stock sh ou ld also be ch ecke d with the en tries in the Mo nt h ly St a t emen t o f a dd it i o ns a nd a lt e rn at i on s o f G ood s S t oc k su bmi t t ed to th e Railway Board. 3. Th e list o f stock re duce d fro m the Au tho rised list an d list o f Dup licate st oc k m ai n t ai ne d b y t he C hi e f M ec h anic al E ng in ee r and r ev i ewed b y t he Wo rksh op Accou nts Off ice shou ld be re vie wed qua rt erly b y this office. It sh ou ld be se en th at redu ction s sa nction ed d urin g th e yea r h ave b een ent e r ed t h erein a nd t he e s t i ma t es f o r t h e n ec es s a ry a dj us t m e nt o f t he ir orig in al cost sanctio ned in a ccorda n ce with the in structions in Railway Boa rd ' s lett er n o.3 9/6 9/5 /S date d 4.5 . 38 a nd th e actu al a djustme nt made in the accounts of the year, and that such stocks wh ich are not proposed to be cut up in the same year are included in the list of Du plicate Stocks. In the co urse of re view o f the latte r, it shou ld be see n tha t ne ce ssary a d j u st me n t s a re a c t u a l l y ca rri e d out when stocks are broken up. 468. Local inspecti on of Shops. (Item XVII-WA.MOI & para s 444-445RA M). All the existing shops should be div id ed i nt o t he c at e go ry o f m aj or and min or. Sh ops ca rrying out re pai rs, ove rh au ling an d reco ndition in g o f lo comotives, wa go ns a nd coach es, ma nuf acturing ma jor article s re qu ired by t he S t or es D ep ar t m ent s , l o ca l b od ie s et c , s t ee l a nd o t he r f o un drie s , Principal Director of Audit, Central Railway 192 timb er sho ps e t c. a nd ma jor po wer ho use s sho uld be locally inspe cted once in 3 years. Th e rest sho uld be tre ate d as minor sho ps an d insp ected lo c al ly o nc e i n 4 y ears . W hi le s ubmi t t i ng t he p ro gr am m e t h e n am e o f eac h of the sho ps with a brief d escrip tio n o f the n atu re of work do ne , wh eth er the sh op is prop ose d to b e cla ssif ie d as Major or Min or on th e b asis of the abo ve instruction s shou ld be furnishe d while framin g th e Insp ection Programme. The p rogramme o f I nspe ctions sh ould b e go t ap proved by the Prin c ip al D i re c t or of Aud i t t hr ou gh COR sect ion (CAG's letter no.647-590RAI/8-11/73 dated 5.3.74 Au /COR/Secret / 1 dated 26.3.74 and Au/COR/15/order/10756 dat ed 11.3.91) . After approval a copy of the in spect io n p ro gramme sh ould be sent t o t h e F A&CAO / WAO f o r i n f o rma t io n . 2. In th e au dit o f in spectio n of wo r k sh op s , p ow e r s t at i on s a nd s u bst ation s th e in st ru ctio ns given in para 43 4 an d 4 35 o f th e Ra ilway Au dit Ma nu al s ho ul d b e b or ne in m in d. 3. Items to be se en d urin g local in spe ctio ns of sh ops are g ive n in Ann e x u re 3 0 t o t h i s Ma n u a l . 4. Insp ectio n of Stores Units at tache d to Die sel Lo co Sh ed s o n Ce ntral Ra ilway with effect from 1. 5.85, Di visional Audit of fices conducting the aud i t o f D ie s el Lo c o s he ds w il l als o c on du c t t he a ud it o f at t a c he d St o re s De po t h ithe r to d on e by Workshop /Sto re s Aud it Un its. (PO O no. 110 3 da ted 27.4 . 85 ) 469. Reconcil iation of Capital- Ma nu f ac t u re d (P rin t in g & St a t io ne ry) st ores Printing Press Bycu lla, ma nufa c turing Susp en se Acco unts o f Prin t in g P re s s By c u lla w i t h t h e G e n eral Books. It should b e s e en t ha t these a ccou nts are duly re conciled with the Ge ne ra l Bo oks every mo nth . Th e relevant checks prescribed for the re conciliation of such accounts und er Stores Aud it an d Wo rksh op Au dit sho uld be ap plied to the a ccoun ts o f P ri n t i n g Pre s s B y c u l l a a lso . 470. Audit of out turn statement by Printi ng Press, Byculla. As t he ou t t ur n s t a t eme nt f ro m t he pri nt i ng i s r ec e ive d q ua rt e rly , t hese s h ou ld be ch ecke d qu arterly. Th e in struction s give n in p aras 3 56 a nd 3 57 of RAM sh ou ld b e f o l lo we d w hi le c he c k i ng t he ou t t u rn s t a t emen t a nd t he A c co un t Cu rren t . 471. Tracti on Motor Workshop at Nasik Road. To cater to the needs of re win ding o f Tra c tion Mo tors and atte nd in g to hea vy re pa irs, a Traction Mo tor Workshop started function in g f ro m D e c em be r 1 97 8. 2. The aud it of th e ab ove tra ction mo tors win ding wo rksh op /facto ry a t Na s ik R oa d d ev o lve s o n t he W or k s hop -a ud it un i t a t P ar el . t he t e s t o f ite ms a s pe r Cen t ra l Aud it sh ou ld be co nd ucte d b y visiting th e WAAO' s office (TMW):Nasik Road. quarterly. 3. Th e insp ection s o f i.IRIEEN Ho stel, Na sik Ro ad , ii. Armatu re Win ding Sho p, TMW, Na sforma Ca pital a nd Reve nue Accoun ts o f Salcon s reserved for the exclusive use of o t he r d ep artme n t s . I n s t r u c t io n s c o n t a in e d in p a ra 365 o f RAM a nd Cha pte r XII-W sho uld be bo rn e in mind while reviewing these acco un ts. 472. Audit of Establishment charges and Provident Fund accounts of Workshop Staff. The ru le s for t he main tena nce of PF acco un ts a s la id down in Ch ap ter IX o f RI and instru ct io ns conta ined in Cha pte r XV on Office Manual 193 Es t ab l is h me nt a nd P ro v i den t f un d A udit o f RA M s h ou ld be re f er re d t o w hi le co nd ucting the au dit o f the se ch arge s and acco un ts. 473. Utility of Statistics in Audit. Fo r th e pu rp ose o f re vie w in aud it and during insp ection s, th e stu dy of stat istics reflected in the statistical re turns p re pare d in worksho ps may b e fo und use f ul. The aud itin g sta ff and Inspe c ting p artie s sh ou ld there f or e kee p the mse lves abrea st of the in formation compiled from time to time in t h e Ac c o u n t s / E x e c u t ive o f f i c e s o f Wo rksh op s for au dit/review pu rpose s. Principal Director of Audit, Central Railway 194 CHAPTER XIV TRAFFIC AUDIT SECTIO N 474 . Ge neral : Th e a udit o f receipt s of th e Ra ilways is req uire d to be co nd ucte d in a ccordan ce with th e reg ulatio ns laid d own in Ch ap ter 4 o f se c t i on I I of M SO (Te c hn ica l) Vo l. I . T he re c ei pt s o f t he ra ilw ay s a re mo stly o n a ccoun t of e arning s from the tra nsp ort of p asse ng ers and me rch an dise traf fic. The oth er re ceipts like amou nts rea lise d b y dispo sal of l os t p ro pert y o r b y t el eg ra ph t r a f f ic a re c om pa ra t i v ely of l i t t le ma gn it u de . T he r ev e nue o f t h e r ai l w ay s e ar ne d f r om t he t r ans p or t o f passe ng ers a nd merchan dise traffic is rea lise d t hroug h the a gen cy o f st a t i o n s w h e r e t ra n s a c t io n s a re in i t ia l ly b ro u g h t t o a c c o u n t . ] 2. The o t he r ag en cie s a re (a ) Tou rist Ag en ts wh o are a utho rise d un de r the terms of their agre ements with the railways, to issue tourist coupons. (b) O ut a ge nc i es 3. The a ccou nts of e arning s are re nd ered b y the se ag en cie s to the Accounts office (Traffic Branch) thro ugh va rious ret urns, balance sheet st atement etc. Th e collected tickets,passes,parcel way bills, invoices,cre dit note s , warra nts,te legra ph vo uch ers,cashe d sta t io n p ay orde rs e t c. are a lso su b m i t t e d t o t h e a c co u n t s o f f ic e . A ll t hese r et u rn s , v ou c he rs e t c . a re ch ec k e d by t he ac c ou nt s of f ic e a nd b ro ug ht t o ac c o un t i n a c o ns o li da t ed re cord fo r th e wh ile railway called Tra ffic boo k (para 320 1-AII ) in wh ich the earnin gs a re reco rd ed d uly classified into coa ching g ood s,sun drie s e t c. and th e p ro gress o f rea lisatio n o f ea rnings is wa tche d. Reco very of due s in lieu of vouchers (cre dit Notes, Warrants, Pvs, JRs, High Official Re quis itions etc) is wa tched through Accounts office bala nce sheet. 4. T he e s s en t ia l d ut y of a udit i n re ga rd t o t he ra ilw ay ea r ni ng s i s t o s ee that i. th e person to wh om th e service is re nd ered p ays t he prop er a mo un t ii. the assessment of railway charge is correct accord in g to the ru le s p re s c ri be d b y t he v ar io us a ut h ori t ie s . iii. the railway officials re ceivin g pa ym e n t co rre ct l y a cco u n t f or t h e a mo un t an d iv. if mo re th an o ne railwa y re nde rs th e service th e receipt is p ro perly distribu ted bet we en the m in a cco rdan ce with the ru le s a nd o rders relating to such app ointme nt. 5. The work re la tin g to au dit of earnin gs may b e b ro adly d ivide d into 1.Cen t ra l Audit of Go ods an d Coa c hing Acco un ts a nd 2 . local au dit o f st ation re co rds (Station s Insp ection ). The ch eck o f e arnin gs sho uld be ca rried out with refere nce to i.the ord er s , ru l es a nd re gu la t io ns i s s ue d b y t he Pre si d ent o r t he R a ilw ay Bo ard. ( i i) I nd ia n R ai lw a y s A c t -1 89 0 an d ru le s ma de th ereu nd er iii)) th e Con f eren ce Rules an d Regu lation s frame d by the India n Railway Con f eren ce Association iv ) t h e T a rif f s , R a t e s C ir c u l a rs e t c . issu ed e ith er b y the In dian Ra ilway Con f eren ce Asso cia t io n or by the Ra ilway Administra tion and (v)th e rele va nt Co ntracts e xecu t ed be tween the ma in an d wo rke d lines. 6. The Traffic Au dit in this office is divided int o 1. T r af f i c Au dit Se c t i on (G o od s Ac c o unt s bot h l oc a l a nd f or ei gn ) Office Manual 195 2. Traffic Au dit sect io n(Coach ing Accou nts b oth lo cal an d fo reign ) 3. T r a f f i c Au d i t Se ct i o n (st a t io n I n sp e ct io n ) 7. All let t ers p ertaining to Traff ic Aud it rece ive d fro m th e CAG (Ra ilways) sh ou ld be received by the Tra ffic Aud it Sectio n Go od s Accou nts (THQ) or Co ac h in g Ac c ou nt s (T- C og ) as t he c a s e m a y b e a nd d ea lt w it h . C op ie s o f all le t t ers s h ould be f u rn ish ed t o Tra f f ic Aud i t Se c t io n (s t a t io n in s p e c t io n ) for in formation an d g uida nce . 8. T he T a rif f s s ho ul d b e k ep t c o r re c t ed a nd u pt o dat e. I t s ho ul d be ensu re d th at a ll co rrectio n slip s are Ra te Circu lars ha ve be en re ceived . Th e a ud it o f the acco unt s is d one in th e fo urth fo llowing mon t h with ce rta in ex c ep t i ons l i k e j ou rn al v ou c hers , c er t a in foreign traffic items, warrant s and credit notes. In this connection para 18 0 o f C ha pt er m ay a l s o b e s ee n. 9. F or p ur po s es of a ud it a ll t he st at i on s , out a ge nc i es et c . a re cla s s if i ed as ve ry b ig, ma jo r or min or. On th e basis of the check prescribed all very big ma jo r and minor sta t ion s sho uld b e grou ped d ivision -wise se pa ra tely for ea ch cate gory a nd from e ach g ro up statio n sh ou ld b e selecte d e very mo nth for aud it t o the exte nt prescribe d. Ad ditiona l se le ction o f station s t o t he e x t ent p re s c ri be d s ho ul d als o be m ad e t o m ai nt a in e l emen t o f su rprise. (CAG's letter no.647/590-RAI/8-1/73 dat ed 5.3. 74) 10. As a min or station may b eco me a ma jor on e o r vice -ve rsa du e to in cre ase/ decrea s e in tra ffic, an an nu al re vie w is ma de b y the Accoun ts office an d corre c tion to th e list of st a t io ns are carrie d ou t. This list sh ou ld be ref erre d to in March e very yea r a nd list o f statio ns mainta ined up to d ate from foreign ra ilways separa tely. i. ii. iii. State me nt sho win g the und er and over cha rg es fou nd a s a re sult o f che ck of in voices for se nding to th e d estina t ion station imme diately for collection before delivery. p aid sta t emen t in re spe ct of traffic bo oke d from ea ch sta t ion to va riou s stat io ns se pa ra tely fo r lo cal a nd foreign traff ic. This sta t emen t is utilise d to verify th e correctness of the debit taken a gain s t ou tward p aid traff ic loca l/ foreign . mon t hly inco rrect sta t eme nts fo r ra ising de bits ag ainst the station / 475 . Audit of invoic es (item LTA I-A-MO I Pa ra s 173 RAM; 2306-AII & 161, 161 -A-I RCA-Go od s Tarif f pa rt I). Aud it o f invo ice s is do ne on forwarded basis i.e. the accounts foils submitte d b y t he f o rwardin g s t a t io ns t o t he Accou nts office are ch ecke d in re spe ct of statio n se le cted fo r aud it to the exten t prescrib ed in th e pro gramme of Au dit. Th e sele ctio n of invo ices for aud it sho uld be mad e fro m th e pa id sta t emen t o f th e selecte d station s wh ich sho w det ails o f invo ice s in respe ct of bot h pa id a nd To Pa y traffic. In re ga rd to se lected in voices (fo re ign) which are in clude d in the In corre ct st a t e me n t , a lis t o f s u c h in co rre ct invoices sh ou ld be p assed on t o the Pr.Director of Audit of the Receiving Railwa ys co ncerne d for a udit. While auditin g the invoic es, instructions gi ven in para 2306-AII should be borne in mind. After check the To Pay in voices sho uld be trace d in to the Ma chine Prepared Abst ra cts while Paid invoices in to the Paid Statements. 2. The con t in uity o f To Pa y invo ice s should be checked with reference to the co ve rin g me mo un der which in voices are receive d fro m th e station and that of pa id invoices with refe re nce to covering memo and th e Re gister o f paid invo ices Bo oks sup plied to station s mainta in ed in the Accou nts of fice . Principal Director of Audit, Central Railway 196 Co ntinu ity of Pa id an d To Pay invo ice s sh ould also be che cked with re feren c es to the pa id state ment s of th e p re vio us mo nth . 3. I n re s pe c t o f c an c elle d i nv oi c e s , i t s ho ul d be s ee n t ha t all f o ils ( ex c ep t Re cord fo il h ave bee n rece ive d from th e sta t io ns. Th e sa me p ro c edu re sh ou ld b e fo llo we d in respe ct o f In spect io n Re po rts in volvin g und er ch arge s as fo re ig n invo ice s issu ed d urin g th e St ation Insp ection s b y Traf fic Audit Inspection Wing) (P rinci p a l DA ' s o rd e rs d a t e d 1 3 . 6 . 8 3 ) 4. W hi le c he ck i n g i nv oi c e s ( l oca l t r af f i c ) end ors ed f or w ei gh me nt e nro ut e , t he ac t u al c ha rg ea bl e w e ig ht s h ou ld be as c e rt a in ed f r om t he mo nt h ly s t at e me nt s of we i ghme nt s / D ai l y a dv i c es r ec e i v ed f ro m w ei gh brid ge station (c/f ru le 14 24(b) a nd 1 42 5 o f Ind ia n Ra ilway Commercial ma nu al) a nd c om pa re d w i t h t h at t a k en in t o a c c ou nt b y t he de s t in at i on st ation in its Conve rt ed Ab stract for pu rp ose o f reco very of freigh t and discre pan cies,if an y, ta ke n u p. 5. Wh ile tra c in g the aud ited invo ices in to th e mach in e p re pared ab stra cts, it s ho ul d b e s ee n t ha t in v oi c es m ar k ed f o r w ei g hmen t e nr ou t e h av e b een prope rly id en tica l in th e abstra ct s or th ey ha ve b ee n in clu ded in the Stat emen ts of In voices ma rke d fo r we ig hmen t e nrout e. 6. The proced ure o utlined ab ove f or lo cal tra ffic shou ld be ap plied mu tatis mu tandis to Fore ig n Traffic also. Particulars of in voices marked for we ig hme nt en ro ute sele cted fo r mont hly a ud it like sta t ion from station to in voice n o.RR No Wa gon No.O wn ing ra ilway, ch arge d we ig ht,rat e ch arged we ig h b ri dg e w he re re qu ired t o b e w ei gh ed et c . s h ould b e a dv i s ed t o t he destin ation ra ilway a udit o ffice s for con ductin g au dit wit h refere nce to we ig hment advices receiv ed in t heir ra ilway accounts office. 7. Similarly particulars of invo ice s a dv i s ed by ot h er ra ilw ay a ud it o f f ic e sh ou ld b e ch ecke d by th is section . This sho uld be watch ed th ro ugh ca lend ar of Return s. Nil r ep or t s s ho ul d b e s e nt . 8. De taile d in stru ctio ns given for inte rn al ch eck o f th ese in voices in the FA&CAO ' s POO 2 of 19 68 sho uld be se en. The a udit not es o n foreign ra ilways sh ou ld be sen t to t he Pr.Directo r o f Au dit o f de stinat io n railwa ys and the dispo s al is wa tche d b y the m sin ce th e credit o r d eb it on a ccou nt o f obje ct io n t ak en i n au dit w ou l d e v en t ua ll y a pp ear i n t he b oo k s of t he destin ation ra ilways. 9. Th e Acco un ts Office of th e fo rwa rd in g ra ilway se nd s on e co py o f the ma c hi ne p re pa re d ab st ra c t t o t h e Ac c o unt s o f f ic e o f t he r ec ei v i ng r ai l wa y s and two co pies o f th e a bstracts to th e d estina t io n sta t ion s conce rn ed , throu gh th e Divl.Hea d Qu arters of the re ceivin g railwa y. Th ey will compa re these a bstracts with de livery b ooks the n co nvert t hem in to in wa rd Abstract s and take de bit in th eir Balan c e Sheets for the total amount in the abstract s . (c /f paras 2330 and 2337 AII). I t should be seen that t he inwa rd abstra ct s sen t by the sta t io ns alon gwith the ir Ba la nce sh eet s corresp ond t o t ho s e r ec ei v e d in t he Ac c ou nt s of f ice f ro m f o re i g n ra i l wa ys. (CAG ; s le t t e r s n o . 2 4 8 6 -R A I / T -1 7 -1 2 / 6 5 d a t ed 12.7.67,1942-RAI / 1 7 -1 0 7 / 6 7 d a t ed 12.5 . 70 ,19 41 -1 60 -RAI / 8-6/7 1 dt d 0. 6.71 10 07 -OSD(C)/44 /71 da ted 3 0.3 .72 , 412 7-OSD(C)4 4/7 1 da ted 13 .11 . 72 a n d Au / T A/ H Q / X VI / 1 / 9 2 0 1 d a t e d 17.1 2.7 10 ). 4 7 6 . A u di t o f I n v o i c e s / I n l a n d W a y B i l l . (CO NCO R) Taking over of In land Co nta in er De po ts (ICDs) by co ntain e r Corp oration of India(CONCOR) w.e f . 1. 1 1. 9 0 CO NCO R is re alis i n g a nd c ol l ec t i ng al l c ha r ges in c lu di ng Office Manual 197 RAILWAY freigh t from con sig no rs/co nsign ee s. CONCOR h as b een aut h or i s ed t o i s s ue d i st in c t r ec e i pt s k no wn as I nl an d Wa y Bills in l i eu o f Ra ilway Re ceipts. See Ra ilway Board 's let t ers da ted 1 7.6 .91 an d 2 2.11 . 91 re ceived under CAG's office le tter n o . 8 8 / RA/ I V/ T / 1 7 -6 / 8 7 d a t e d 4 . 9 . 9 1. Th e au dit o f In la nd Way Bills sh ou ld b e cond ucte d on similar line s as tha t of audit of Invoices. 477 . Revi ew of Monthly Incorre ct Sta te m e nts. Th e inco rrect sta t emen ts of th e stat io ns sele cted f or aud it shou ld be re viewed to se e th at act io n ha s bee n ta ke n b y th e Acco un ts O ffice to raise de bits ag ainst th e statio ns in re spect o f u nd ercharge s sh own th erein. The u nd ercha rg es no tice d du ring the co urse of au dit of invoice s sh ould b e traced in the co nne cted in corre c t st at e me nt . ( C AG ' s le t t er no . 19 41 -1 60 -R AI / 8-6/ 7 1 d at e d 10 . 6. 71) 4 7 8 . A u d i t o f I n v o i c e s o f n o n -G ov e r n me n t Ra i l w a y s . All the no nGove rn me nt ra ilways a re grou pe d into con venie nt zo nes on the ba sis o f the exte nt o f che ck prescribed in th e Secret Me mo rand um a nd selection sh ou ld be ma de fro m th ese grou ps for all processe s of a udit. The accou nta l of invo ice s o f non -g ove rn ment railwa ys h as no t bee n brou gh t under mechanization as such the account a l is d on e o n R ec e i v ed b as i s . 479. Compari son of outward and Inward traffi c /re t urn s an d review o f una ccou nte d in voices (n on -Go vernme nt ra ilways). Th e Inwa rd Division sh ee ts of t he n on -g ove rn me nt Ra ilway se le cted for au dit o f in voices sh ou ld be co mp ared with th e forwarde d ab stra cts of this railway selected for aud i t . T hi s s ho ul d b e d on e i n the f ourth following month. 480. Audit of Railw ay Mate rial Traffic Note s (RMC Notes) a nd R e v ie w o f Re gisters p ertaining to RM tra ffic. Railwa y Mate rial Traff ic doe s no t co me und er t he pu rvie w o f simplif ica tio n of Traffic Accou nts Proce du re . The ch eck o f RMC n ote s an d th e b ills shou ld b e d one con curre ntly in resp ect o f t he s t a t i ons s e le c t ed f o r a ud it . W hi l e c he c k in g t he s e R M C n ot e s , in stru ctions g ive n in p aras 34 02 -A II et seq . sho uld b e bo rn e in mind . It sh ou ld be pa rt i c u la rl y s ee n t h at i n c as es h er e e i t he r t h e c o ns i gn or or t he co ns i gn ee i s a no n- r ai lw a y p ar t y t he s a m e ha s b ee n s pe c ia lly pe rmi t t ed b y t he ra ilw ay B oa rd . 2. During th e review it sho uld be see n ha lf yearly for on e mont h tha t the total of RM Traffic as per forwarded abstracts is tallied with t he bills prefe rred and ne cessa ry certificate of re conciliation is recorded in t he Bills Re gister mainta in ed by the Acco unt s O ffice . It sho uld a lso be seen tha t for the same mon t h, the to tal of fre ight ch arges bille d for as per Bills re gister ackno wle dg emen ts from FA&CAO (exp ) an d DAOs h ave b een d uly re c ei v ed. I t sh ou ld als o b e s ee n t h at p ro mp t act i on is t a k en t o c l ea r o ld outst and ing ite ms. 481 . Wharfage and Dem urr age Re turns. The wha rfa ge an d d emurrage re turns th e sta t io ns se le cted for au dit sho uld b e ch ecke d as p er intruction s given in Pa ra 23 43-AI I. 482. Check of Wa gon Registrati on Fe es . In re spect of statio ns se le cted f or a ud it of s t at io n ac c o unt s , t h e s t at e me nt of w ag on r eg i s t ra t io n f ee co l le c t ed , re f un de d, f or f e it e d s h ould b e c h ec k ed w it h re f er en c e t o De bit an Cred it in the ba la nce she et. In respe ct of amou nts refu nd ed it sh ou ld be se en th at th e amou nt h ad be en origina lly d ep osited an d tha t the rece ip t given to the party is co lle c ted a nd sent in su pp ort of the cre dit ta ke n. In add itio n to t he a bo ve mont hly ch eck o utsta ndin g for the ra ilway a s a who le Principal Director of Audit, Central Railway 198 und er wa go n re gistra tion fe e dep osits shou ld be trace d an nua lly to the exten t prescribe d ba ck to t he mo nth of o rigin a nd ou tstan ding ge nera lly re vie wed. 483. Remi ssion and Re funds of Wharfage and Demurrage charges (LTAIV-MO I & Para 176-RA M). General Man ag er an d lo wer au tho rities have bee n de lega ted powe rs fo r waival of wha rfa ge a nd d emu rrag e cha rg es tha t accrue on consig nmen ts awa iting d espa t ch o r de livery. Th e Pro gramme o f Aud it prescribe s a mon t hly review of the impo rta nt case s of remissio n and re fun ds o f wh arfag e an d d emu rrag e charg es se lecte d by t he Pr.Dire ctor o f Aud it an d sp ecial inve stig ation s ba sed on an ove ra ll re vie w of th e lit o f re mission s. This review in clu des cases of re missions gran ted bo th b y officers a t Hea d Q uarte rs and th ose at the divisio na l le vel. The selection of a ud it of t he s e c a s es s h ou ld b e o bt a i ned b y t h e T r af f i c A ud it s ec t i on s (co ac hi ng a nd go ods) a t H Q r s . i n t he la s t w ee k o f t he p re c edin g m on t h in wh ic h t h e a ud it i s du e a nd t h e d et a ils o f c a s es t o s e l ec t ed s h ou ld be in tima ted to th e resp ective Divl.Aud it Offices imme diat ely who sh ou ld arra ng e t o, re vie w th ese case s a t th eir en d an d in tima te the resu lts to the AUO ( T H Q ) f o r f ur t he r ac t io n at HQ rs . l e ve l . T he c om p lia nc es of t he proced ure sh ou ld be wa tche d th ro ug h Arrears Rep orts bo th a t HQrs. and division al le vel. Wh ile reviewing th e se ca se s, i n st ru ct i o n s g i ve n i n p ra 176 of RAM shou ld b e bo rne in min d. (POO 91 1 d ate d 2 5.4. 67) 2. Ref und of wh arfag e a nd de mu rrag e ch arge s. It sh ould be seen th at 1. 2. 3. 4. t h at a m oun t o f w ha rf a ge / de mu rr ag e c harg es h as b ee n a c c oun t ed for by the stat io n in the connected return . th e a rithme t ica l calculation of the amou nt ref und ed is co rre ct th e claim ha s be en prefe rred in time a nd th e refu nd is mad e un de r th e san ction o f the compe t en t au thority with the con cu rre nce o f t he Accoun ts Depa rt me nt whe re ver n e c e s s a ry . 3. The circu msta nce s und er which wh arfag e a nd d emu rrag e cha rges a re usua lly remitted by th e Ra ilway Administra tion are ind ica ted be lo w. 1. 2. 3. 4. 5. 6. d elays in d elivery occa sio ne d b y da ma ge d co nd itio n o f go od s or d isp ute s rela tin g to we ig ht a nd charge s or oth er cause s be yond th e co nsign ees co ntrol. p ro ba bi li t y o f t h e r ea li s at i o n o f t h e f u l l d ue s by auct io ni ng t he consignments due to their value to avoid litigation or compensation whe n charge s a re pa yab le by oth er de pa rtme nts o f th e Ra ilwa y or Government Departments. wh en the dela y in bo oking arise s ou t of prio rity restrictio ns d is p ut e b et w e en c o nsi gn or s a nd c onsi gn ee s , f al l in m a rke t price , c o mp la i nt s r eg ar di ng no n-re c ei pt o f a dv i c e o f arriv al o f go od s . 484. Demurrage charges due from Bi g fi rm s. Wh arfag e and d emurrage ch arge s ou tstan ding a ga in st big firms sh ou ld be sp ecially scru t in ised to the en d of each fin ancial year. Th e revie w sho uld be ca rrie d ou t in the mo nt h o f O c t ob er e ac h y e ar a f t e r ob t ai ni ng f ul l p ar t ic u l ars f r om t he FA &CAO (T). Important cases wh ich af t e r i n v es t i ga t io n p re s ent in t er es t i ng f eat ures j us t if y i ng c o mme nt in t h e R a ilw ay Aud i t R ep or t e it h er i nd i v id ua ll y or alon gwith simila r case s sho uld be re ported to the CAG . (P r. Dire ctor of Aud it o rd ers d ate d 14. 9.60 o n the CAG(R)' s le tter no.9 53 -RA II/ 1-17-11 /60 date d 2 . 7. 60, SA/TA/65 3). Office Manual 199 2. It should be seen that the ra tes no tif ied in t he local ra te advices and throu gh rate circulars d o no t in fring e th e ma ximu m a nd minimum rat es la id down by the go vernmen t. It sho uld also b e se en t hat p rio r Accoun ts co ncu rren c e is obta ined be fore the se a re int ro du ce d a nd th ere is ad equ ate ju s t if i c a t io n f o r in t ro d u c t io n o f t h e s e r a t e s . 485. Handli ng Bi lls (Coaching and Goods). T he h an dl in g bills i n r es pe c t of station s se le cted fo r au dit sh ou ld b e ca lle d for from the Accoun ts Office. The re ceipt of all the bills should be verified with re ference to the re gister of h an dlin g b ills mainta in ed in the Acco unt s office. Th e b ills sh ou ld b e che cked with re feren c e to in struction s co ntain ed in pa ra 3 003 A II. The handling bills in respect of stat ions in Bo mb ay divn. where handling co ntra ct ors a re e ng ag ed (lo ad in g an d un load in g) shou ld be ch ecke d yea rly in stea d o f ta kin g th em a lo ng with th e sta t ion acco unts. Th ese bills sh ou ld be ch ecked in so far as weigh t cla ime d by th e ha nd ling con t ra ctor for lo cal t ra f f i c i s c o nce rn ed w i t h t he p ar t icu la r s s ho w n in t he r eg is t e rs m ai nt a in ed . As re ga rd s t he we ig ht claimed f or foreign tra ffic, if a ny in th e ha nd ling bills, a p rima fa cie che ck shou ld be exe rcised to se e th at th e to tal arit h m et i c al c a lc u la t i on l ea di ng t he i s s ue o f t he c on s olid at e d pa o rd er i s co rre c t an d tha t th ere is evide nce tha t t he foreig n tra ffic po rtio ns in the bills have been verified in internal check. other checks prescrib ed in paras 3003 A II et seq should be exercised over these bills. Thereafter, the usual checks prescribed for pay orders should be exercised on the co nso lid ate d pa y o rd ers issu ed fo r th e to tal an d pa ssed fo r p aymen t in re spect of ea ch han dling bill. (CAG' s le tter n o.5 15 -RAI I/T.17 / 62 da ted 19.2 . 63 )Instruction s co nta ined ag ainst item LTA-V-OI sh ould a lso be borne in mind. 486 . Chec k of Cra ne cha r ges . A list o f sta t io ns whe re crane s are ta bled is g i v en in t h e S up pl em en t ary G o od s T ar i f f i s s ue d b y C en t ra l R ai l wa y . Select io n o f on e such station sho uld be ob taine d e very mon t h for au dit o f the retu rn o f cra ne hire an d ha ulag e c harg es sent b y th e station . It sh ou ld be see n th at the retu rn s are in th e p re scrib ed form du ly sup po rte d b y accou nts fo ils of receip ts wh ereve r ne cessa ry an d a ll the pa rticulars in the st ate me nt h ave be en prope rly fille d in . 4 8 7 . T o l l s a n d T a x e s . (se e it e m s-L TA -i x &x v i i -M O I & pa r as 171 & 1 81 o f RA M.The Ce ntral Railway is resp onsib le to colle ct on b eha lf of lo cal bod ies, o c tro i and o t he r ta xes such as p ilgrim taxe s an d town dut y in accorda nce with th e ag reeme nts wit h t h e re sp e ct ive lo ca l b o d i e s a t ce rt a in st ation s . The list of sta t io ns wh ere th ese a re collecte d sho uld b e ca lled for ann ua lly a nd th e list kep t up to d ate . The exte nt o f check is a s given in the Secret memo ra nd um. Instruction s given in p ara 1 81 o f RAM an d pa ra s 2138, 2601 to 2608 AII should also be born e in mind. Annual review should be ma de to see th e th e commission realised from th e lo cal bo dies for doin g the wo rk is su fficie nt to me et th e cha rg es incurred b y t he railway for co l le c t in g a c c ou nt i ng an d p ay m en t of t hese c ha rg es t o t he M un ic i pa l it i es. 2. For check of pilgrim statements under computerised system, ref erence ma y b e m ad e t o pa ra o n t he c han ge s i n a udit proce du re a s a re s ul t co mpu t erisa t ion of traff ic a ccoun ts. 488. Proforma account of work done on behalf of othe r Government De partments. A profo rma accou nt sh owing commission charges earned and e x pen ditu re incurred is pre pared b y th e Accou nts office when ta x is co lle c ted on be ha lf of o t he r Gove rn me nt De pa rtme nts o r ou tsid e b od ie s. Principal Director of Audit, Central Railway 200 Th e acco un t sh ou ld b e che cked (wh ich is comp iled b y the Acco un ts office) to se e wh eth er the Railway Administra tion ha ve reviewe d th e ade qu acy o f the commissio n charge s fo r ren dering th e ch arge s. It shou ld be see n tha t all incide ntal exp ense s h ave b een t aken in to accou nt an d tha t t he Railwa y doe s no t su ffer an y lo ss in re nd erin g th e service. Pa ra 26 08-A II sh ou ld be referred while reviewing this account. 489 . Refund lis ts and ove r c harge s hee t ( s ee p ar a 1 79 -R AM &I t em XI I LTA-MOI_. Stat io ns sele cted for au dit sho uld b e ch ecked . During the au dit of ref und list s an d O v er cha rge she ets inst ru ctio ns given in p ara 17 9 o f RA M and para s 2403 to 2412 A I I s h o u l d b e b orne in mind. 2. Refund Li sts. This is a list of refunds al l ow ed t o c o ns i gn ees b y t he Stat io n Ma ster a t t he time o f d elivery a nd is sen t t o t he Acco un ts o ffice alon gwit h t he b al an c e s he et i n s up po rt o f t he c r ed it t a k en b y t he S t at i on Ma s t er. 3. Ov er Charge s heets. Th e refu nds o n ove rch arge shee ts are ce rtified b y the FA&CAO and pa yment s are mad e th ro ug h sta t io n e arning s. The overcha rg e sh eet s a re re ceived in su pp ort of th e credit ta ken b y station s in t he b alan c e she ets. It sh ould b e se en th at o vercharg e she ets ha ve b een ce rtifie d by th e Compe t en t Auth ority. Whe n in con ne c tion with a p articular st ation a large n umbe r o f overcha rge refu nd s of similar na ture are n oticed , the re ason s the refo r sh ould be in vestiga t ed . 490 . Cashie r's Sta tion Cas h Book . See it e m X I V un de r L TA -M O I . C as h re ceipts from all sta t ions (Sta tion remittan ce no tes) for the mo nth se lected for au dit sh ou ld b e verified with cash (Tra ffic) check sheets re ceived from the Chie f Cashie r to the extent prescribed. Pa yments int o the Treasury/Bank should be verified with the re ceipts receiv ed from the Trea sury Officer/Ba nk in toke n the reof . It sh ould b e e xamin ed wh eth er there h as b ee n an y d elay on th e pa rt of th e station s in remitting cash co lle ctio ns, wh ethe r th e ca sh remit t ed b y the station s have be en d uly ackno wle dg ed by th e cash ier an d correctly acco un ted for in th e che ck sh ee ts. The a c tion t aken re ga rd in g sh ortag es in th e stat io n remittan ces, if any, shou ld also be lo oke d into . 491. Traffic Suspense Accounts. Af t er the accounts for March are clo s ed, a ge ne ra l revie w sh ou ld be ma de of th e va riou s cate go ries o f outst and ing un der th e h ea d Traf fic Accou nt an d Fo re ig n Ra ilway. The outst and ing fig ures sh ou ld also be compa re d with simila r fig ures for the previous year.It should be seen whether the account is correctly posted brin ging o ut a ll ou tstan ding at th e en d of th e ye ar and tha t each case o f hea vy ou tstan ding is a ppro pria t ely p ursued a nd tha t th ere is no un due dela y in t he clearan ce f o utsta nd in g. During th e revie w of the se re gisters in stru ctions given in para 381 of RAM and in chapt er XII of Indian Railway for Accounts Code vol. I and para s 3226 t o 3 2 3 0 -A I I s h o uld be borne in mind . 492 . Statem ent of Si di ng Cha r ges. (Ite m LTA-XX-MOI) A list of a ll siding s on this ra ilway tog eth er with ra tes of siding ch arges fixed a nd th e date s fro m which the s e are effe ctive is mainta in e d i n t h e T ra f f i c Au d i t se ct i o n . From t hi s lis t , s id in g s t at e m ent s s ho ul d be s e l ec t ed f or a udit t o t he e x t en t prescrib ed . Instruction s g ive n in p aras 23 46 to 2 348 -AII sh ould b e borne in mind. Para 255 & 285 of RA M should also be referred to. Wit h effect f ro m 1 . 7. 8 7, n o s i ding c ha rg es a re le v ia bl e o n n ot i f i ed s i d in gs w he n a t ra in ru ns throu gh to or fro m th e sid in g with railwa y's loco mo tive or orig inate s Office Manual 201 fro m or termin ate s in th e e xcha nge /pe rip heral ye ar provide d b y th e siding hold er. Fre ig ht charg es o n the train loa d t ra ffic are levied up to the sid in g/e xchan ge ea rn ed on throu gh distan ce b asis. 2. Following po in ts sho uld b e se en du ring the au dit o f sid in g st ateme nts. i. ii. iii. iv. v. vi. vii. a gr ee me nt e x is t s f or ea c h s i ding th e ch arge s ha ve be en calculat ed corre ctly accordin g to the a gr ee me nt a nd t he ru l es i n f o rce . in the ca se of det entio n to wa go ns beyo nd free time cha rg es have b een levied a s and whe n a sid in g is use d u nde r t he p rope r sa nction by a d epa rtme nt firm o r mercha nt oth er tha n the one for wh om the siding wa s o rig in ally co nstructe d re mune ra tion ch arge s a re reco vered at th e ag re ed rate s a nd pa id to the o wn er o f the siding , a fter de du ctin g th e co mmission. If an y bill fo r payme nt o f remun eratio n cha rg es is se lected for au dit (u nd er Miscellan eou s Pay Orde r) it shou ld be en sured that not mo re tha n th e a mo un t co llecte d is pa id an d th at commissio n ch arges h ave bee n d uly d edu cted . th e che cked sta t emen t sho uld be tra ced in to the Re gister of siding c h arges m ai n t ai ne d i n t he Ac c ou nt s of f ic e a nd t he a m oun t s ho wn in th e siding state ment h as b ee n correctly take n to de bit in the b alan c e she et. Wh en ever siding cha rg es are paid by cred it n ote s, th e b ills shou ld be che cked with re feren c e to the Reg iste r of siding ch arges. The siding /place me nt ch arge s are fixed eve ry ye ar as laid down in Railway Board's letter no.TCI/1087/ 7 4/2 d ated 19. 4.76 afte r taking into a ccoun t th e All Ind ia sh un tin g and train en gine h our co sts. In a ccordan ce with the re commen dat io ns o f the Railway Rate s Trib un al, the Railwa y Bo ard h ave re vie wed the basis o f re cove ry o f siding cha rg es a nd have fixed on all Ind ia shu nting en gine ho ur c o s t a nd t r ain e ng in e ho ur c o s t s . ( wi t h e f f ec t f r om 1. 6 . 76 A u / T A/ H Q / 1 / 5 ) It sh ou ld be se en that t here is no modification or cha ng e in the la y o ut of t he y ar d of t he s i din g d oo r y ar d s er v in g t he s a me n ec es s i at in g r ev i s io n o f t he s id in g/ p l ac em e nt c ha rg es . ( R ai l wa y Board' let t er no .TCI/10 89/ 74/2 da ted Au /TA/HQ/1 /5) 493 . Rev i ew of Re gister of priva te and Assi sted Sidings . Th e Re gister ma in t ai ne d i n t he CCS o f f i c e s ho ul d be re v ie w ed a nn ual l y in Ju ne wit h a vie w to se e th at a ll th e siding s in cludin g th ose newly op en ed for traffic have be en in clu de d in th e Reg iste r. Th e siding s ne wly o pen ed for traffic hav e b ee n no t if ie d. Th e r egis t e r m ai nt a in ed b y t hi s o f f i c e s ho ul d be broug ht up t o d ate. 494. Traffic Book and Ac counts offi ce Bal ance sheet. (se e i t e m L T A-VI I MO I & para 178-RAM).Tra ffic Bo ok. The traffic book maintain ed by the Ac c ou nt s of f i c e s ho ul d be r ev i e we d y ea rl y t o t he e xt ent p re s c ri be d, t o s ee t hat p os t i ng s a re c or re c t a nd c o m pl et e . . I n s t ru c t i on g iv e n in ch ap t er XXI X of Ind ia n Railway cod e for Acco unt s De partmen t an d in pa ra 1 78 of RAM sh ou ld b e b orne in mind . Th e mon t h/s selecte d for au dit o f Accoun ts office ba lance sh ee t shou ld be ta ken f or th e p urpose of review of Traffic Boo k . Principal Director of Audit, Central Railway 202 2. I t s ho ul d be v er i f ie d t ha t b al an c es u nd er t h e h ea ds ‘Tr af f i c Ac c ou nt s ’ tra nsa ct io n, Fo re ign Railwa ys an d De po sit Priva t e Compa nies h ave b een re conciled with t he b alan ces in th e Ge nera l Books. In the an alysis o f Traf fic Boo k in Part B it sh ou ld be se en tha t the resulting ba lance ta lly wit h t h e b a l a n c e s o f Ac c o u n t Cu rre n t . Instructions given in chapter XXXIII of In dian Ra ilway Co de f or Accou nts Dep artmen t an d in p ara 17 6 o f RAM sh ou ld be bo rn e in min d. Th e tracing of po stin g o f Ba la nce she et o f st at i on s in t o t he T ra f f i c Boo k i s do ne af t e r t he au dit o f Ba la nce s he et s o f st ation s selecte d fo r aud it ea ch mon t h. 3. Reco ncilia t io n o f ba la nce s as p er Tra ffic Boo k wit h th ose as pe r Gen eral Books. The ma nuscript register maintain ed in the Traf fic Bo ok section to arrive a t the ba la nces a s pe r Ge ne ra l Boo ks un der th e susp en se h ead s Traf fic Acco unt , Fore ig n Ra ilwa ys an d Dep osit Privat e Co mpan ies sh ou ld be che cked to se e tha t th e figures fo r the mon t h as well a s th e ba la nce a t the e nd o f th e p re v io us an d curre nt mon t hs ha ve be en co rre ct ly no ted . Th e re concilia t ion she et sh owing the ba lance s a s pe r G en eral Bo ok und er Traf fic Acco unt an d Foreign Ra ilways is sen t in du plica t e to th e Gen eral Books section for verification a nd cou nte r sign atu re . It sh ould be seen that th e discrepa ncies po inte d ou t b y Gen eral Boo ks se ction a re d uly exami ne d a nd r ec t i f i ed . T h e dif f er en c es on ac c o un t o f c a s h a nd j ou rn al vo uch ers sh ould be fu lly in vestiga t ed an d re con ciled . It sh ou ld b e seen t hat t he f ig ur es p os t e d i n t he pres c r ib ed f or m f or r ec on c i li ng t he differen ces u nd er e ach cate go ry ha ve b ee n co rre ctly extracte d and co mplete ly re conciled . In re sp ect of items o f differe nces o n a ccou nt o f adju st me nt re la ting to previou s mon t hs su ch ite ms sho uld be lin ked with those o utsta ndin g in the reco nciliatio n sh ee t fo r the previou s mon t h and the conn ecte d e ntries can celled . 495. Audit of Goods Ba lance sheet. Th e acco un ts o f a station se lected for mon t hly au dit sh ou ld be che cked comple tely with re ference to its bala nce sh ee t bo th in re spect of r ec e ive d a nd f or w arded traffic. a. Pa id ou tward-lo cal an d foreign : Th e correctne ss of th e de bits should be checked with refere nc e to the machine abstracts (a ls o k no w n a s Pa id s t at e m ent s ) c o mp ile d b y t he Ac c ou nt s o f f i c e. b. To Pay in ward local an d fo re ig n: T he c or re c t ne s s o f t he deb i t t ak en in t he bala nce she et o f th e station /Inlan d Co nta iner De pot (I CD) sele cted for mo nth ly au dit sh ou ld b e che cke d with refe rence to converted machin e abstracts and sub mi t t e d t o t h e A c c o u n t s o f f ic e alo ngwith the station / ba la nce she ets. c . ot her items a ccoun ted for ICD in th e b alan ce she et sh ou ld be checked with re ference to the connected re turns(see chapter XXIIIAI I ) 496 . Net Ba lanc e state m ent. In a ddition to th e accu ra cy of a rithme t hical ca lculation it sh ou ld b e se en with re fe rence to th e Division shee ts or Gra nd summaries th at th e sh are due to ea ch railway h as b een correctly taken an d th at the net de bits an d cred its h ave be en corre c tly arrived at. 497. Review of tenders and contracts. The co ntracts ent ered into by the CCS re la ting to h and lin g o f go od s, ou t ag en cie s etc.sh ou ld be reviewed qua rt erly by the Tra ffic Audit Sect io n (ca t erin g an d vend ing con t ra cts ente red in to b y the CCS/DCS a re re viewed by th e Expe nditu re Au dit Sect io n). Office Manual 203 2. In terms of CA G's le tter no.301-RAI/8-7/ 66 dated 27.8.66, handling co ntra ct s in respe c t o f all transh ip men t po in ts sho uld be re vie wed while othe r major h and lin g co ntracts re vie wed un de r ite m CA xiii 2) G ood s Ha nd ling con t ra cts. While th e con t racts e nte re d into by th e CCS sh ou ld be re vie wed by th e He ad qu arters Au dit se ctio n, the Division al Au dit O ffice s sh ould similarly review t he contract s ent ered in to by the Divisional Officers und er sch ed ule of p owe rs dele gat ed to the m. The requ ire d p articulars sh ou ld be c a l le d f or f r om t he c o nc e rn ed D i v i s io na l o f f ic e . T he r es u lt s o f re vie w sho uld b e advised to th e He adq ua rte rs Au dit Section to en able the la t t er t o re v ie w t he imp le m ent a t i on of t h ese c on t ra c t s . 3. A reg iste r for re vie w o f co ntracts an d imp lemen tation o f co nta cts sh ou ld be ma in taine d in th e fo rms prescribe d vide p ara 5 71 o f Cha pter XXI on M a in t en an c e o f v ar io us r eg i s t ers . 498. Review of Missing or Del ayed Returns. The position of missing or dela ye d r et u rn s o f a ll t he D i v i sio ns s hou l d be r ev i ewe d eve ry qu art er i. e . t he po s i t io n o f r et u rn s a s on 31 s t M ar c h, 30 t h J u ne , 3 0t h Se pt e mb er and 31st De cembe r sho uld b e reviewed in April, Ju ly, O ctob er a nd Janu ary re s pec t i v e ly . T he la t e o r n on -s u bmi ss i o n of t h e m or e i m po rt a nt r et u rn s su ch a s bala nce sh ee ts, passe ng er cla ssifica tio n, wh arfag e an d d emurrage re turns etc. should be specifically co mme nte d in the re vie w. 2. The fo llowing po in ts requ ire spe cia l e xamina t io n. i. ii. iii. iv. v. vi. vii. viii. Arrea rs in reg ard to th e submission of re turns by th e station s o ve r t hr ee m ont h s . Con t inuo us sla ckness on the p art of the sta t io n to se nd the r e t u rn s . An y ten de ncy o n th e pa rt of a ny sta t io n to re sort th e irre gula rity o r to con t in ue it with ou t che ck be yond a re ason ab le pe riod . progressive increase or decrease in the nu mb er of station s invo lve d, sign ifica nce of th eir lo cation etc. Pro mp t ne ss and effe ctivene ss of th e a ction t aken by th e Accoun ts a nd t he c om me r cia l d ep ar t m ent s . A re cord sho uld be kep t of th e d efa ulting statio ns fo r he p urpose o f statio n insp ection an d special revie w of t heir acco un ts, if n e c e s s a ry . same preference ma y also be given f o r s e l e c t i o n o f s u c h s t a t i o n s fo r a ud it at h ead qu arters. The TI A' s rep orts of th e station s in resp ect of wh ich se riou s d el ay s in t he s u bmi ss i o n of r et u rn s a re not ic e d s ho ul d be r ev i ewed t o s e e ho w f a r a pp ro pr ia t e a c t io n w a s t a k en by t he TIAs. In such cases action taken by the Accounts office sh ould a lso be critically examine d fo r t he ade qu acy a nd promptn ess. 3. Hea dq ua rte rs Audit se ctio n sh ou ld bring to n otice o f the Insp ection se ction cases of unusual dela ys in re ceipt of st ation re turns or important missing ret urns selected for audit. On re ceipt of this information the posi t i on i n re s pe c t o f t h ese r et u rn s s h ould als o b e i n v es t i ga t ed by t he Inspe c tion section . The re vie w not es sho uld be tre ate d a s conf id en tia l and ke pt i n t he c us t od y o f t he S ec t i on O f f i ce r . T he q ua rt e rly re v i ew not e s sh ould be put up to Pr.Director of Au dit. (C/f CAG's letter no. 998-RA II/T17.2 6/5 7/KW dat ed 2 8.1 0.5 8). 499 . Write off cas es and Auc tion s ale sta te m ents. Writ e off cases in c lu di ng a uc t i on s al e s t at e m ent s s h ould b e c he c k ed m on t hly t o t he e x t en t Principal Director of Audit, Central Railway 204 prescrib ed . It sh ou ld be se en tha t sa nctio ns acco rd ed a re with in the powe rs o f s an c t i onin g a ut h orit y and r easo ns g iv e n f or t he ir w ai v al a re ade qu ate . It shou ld a lso be see n t hat write off is n ot d ue to an y erro r or defect in the system or procedure, and that necessary adjustments co nse qu ent on th e amou nts written o ff h ave be en p ro perly ca rried ou t. Auctio n sale stat emen ts in resp ect of t he write off cases selected for audit sh ou ld also be calle d fo r and reviewed . In stru ction s given for cod itio n o f auctio n sales in p ara 2 235 of In dian Railway (commercial) ma nua l sh ou ld be b orne in mind. 500. Concurrent check of Police Wa rrants and Credit notesError! Boo kma rk n ot de fine d. (Parcels an d Goo ds). The wa rran ts and cre dits note s in resp ect of the sta t ions sele ct ed sho uld be checke d con curre ntly as the s e bills are no t availab le fo r a ud it in the fo urth fo llowing mo nth . Instruction s given in n ote 3 be lo w para 1 74 o f Railwa y aud it Ma nu al and in paras 29 04 a ii e t se q shou ld b e kep t mind. Th e checke d warra nts and cre di t n ot e s s h ould b e t ra c ed i nt o t h e bills, the to tal amou nt bille d for ve r if i e d a n d t r a ce d i n t o t h e Bil l s Re g i st e r. 501. Review of Registers of Credit notes kept pe nding. Th e Re gister o f Cred it no tes ke pt p end ing, ma intain ed in the Acco unts office, sh ou ld be re v ie w ed half y e arly t o s e e t h at p ro m pt a c t io n is t a k en t o in c lu de t he pen ding cre dit n ote s in the sub s eq ue nt b ills. 502. Item LTA-X under MOI. Re vie w of Insp ection repo rts of station Inspe c tion s by Trave lling Insp ecto rs of Accounts and Traffic accounts O f f i c e r s . A l is t o f Tra ve l lin g I n s p e c t or s o f A c c o u n t ' s e t c . l a t e s t r e p o r t s dea lt with the Acco un ts a nd filed by th e m s ho ul d be c a l le d f or f r om t ha t office for review in the followin g mont h t o t he ext e nt p re s c ri be d i n CA G ' s le tter no .23 01 -RAI/ 8-7/6 6 da ted 27 .8.6 6 to see wh eth er the re is an y la cuna in the syst em and whether the system is working wit h re asonable efficie ncy. It sh ou ld a lso b e se en whe t he r eff ective and p ro mpt action ha s bee n take n by th e Accou nts office on th ese rep orts. Failu re to d o so ma y be commen t ed whe re v er con sidered n ece ssary. Stat io ns h aving large numb er o f irregu laritie s sh ould b e prefe rre d for lo cal in spe ctio ns an d if co nside re d ne cessary sh ould be ta ken up fo r lo cal au dit in ad dition to the qua ntu m prescrib ed . 503 . Apporti onment of earnings between main and worked lines (see ite m II L TA of MOI a nd pa ra 17 4-RAM). Inst ru ctio ns co nta in ed in ch ap ter XXXI of Indian Railway code for Accounts Depart ment Pa rt II Traffic Accou nts a nd pra 1 71 of RAM sh ou ld be bo rn e in mind . 504. Pooling Traffic Ar r angements. ( I t em L TA -x x i i -M O I ) T he s c op e o f aud it re qu ired to b e e x ercise d in co nd ucting the an nu al ge nera l review o f this item is la id down in para 182 o f RAM. Su ch arra ng emen ts whe re ver ex i s t in g s ho ul d b e s c r ut i ni s ed wit h a v ie w t o s ee in g t h at t h e i nt e re s t of t he G ov e rn me nt as a w ho le is no t a pp re c ia bly af f e c t ed a nd t h at t he distribu tion of earnin gs b etwee n the pa rtie s con cerned is d one o n a fa ir and e quita ble ba sis. For t his pu rp ose , th e file s of the railwa y administration shou ld also b e reviewe d to se e wh ethe r over a p eriod o f ye ars th e arra ng emen ts h ave no t b ee n ope ra ted u nfa voura bly to an y p arty ju stif ying a re vision of the terms orig in ally ag re ed upo n. (CAG' s le tter n o . 7 0 6 -R A I I / 1 7 -4 5 / 6 2 d a t e d 2 1 . 3 . 6 4 ) 505 . Colle ction a nd de live r y se rvic e-proc edure for Pay m ent to Co n t r a c to r s. Bills prefe rre d by stree t colle c tion /delivery con t ra ctors Office Manual 205 sh ould be checked in audit as and when a station where the system is in force is selecte d for mo nthly aud it. The sele ctio n of station fo r mon t hly aud it shou ld be so re gula t ed as to en sure th at o ne or two su ch sta t io ns a re necessarily selected in a year. In th e course of audit of these bills the followin g points should be seen. i. T ha t w ei gh t p ar t icu l ars in t he c on t r ac t o rs b il l s t al l y w it h t h ose in Parcel way bills, in voices for abstracts etc. ii. Tha t the ra tes cha rged are in a ccordan ce with th ose p ro vided in t h e a gr eeme nt a nd iii. th at th e a rith me t ical calculatio ns are corre ct. (CAG's letter no. 3406-RAI/T-17-5/66 dated 19.8.68) 506 . Pa yme nt of Te rminal c harge s to the Mumbai Port Trust Railways. Te rmi na l c h arges are p ai d t o M um ba i PT R ai l wa y f or t r a f f ic i nt e rch an ged with th at ra ilway as p er th e ag re emen t e n t e re d in t o b y t h e t wo ra i l wa ys. Th e pa yme nt of the s e ch arge s sho uld be ch ecked in de tail to th e e x ten t prescrib ed . Th e correctn ess of th e traffic ha ndle d by th e MPT Railwa y sh ou ld b e c he c k ed w i t h re f er en c e t o the return s submitted by the MPT ra ilway stat io ns. Th e rte an d the amou nt pa id sho uld be ch ecke d with re f er en c e t o t h e r at e s a s s an c t io ne d by t h e R ai l wa y Boa r d an d a s p ro v i ded in the ag re emen t. 507 . Rev i ew of ex em pted De bits /Debits wi thdraw n/Error She et Re gister . Th e reg iste r main taine d in th e Accoun ts office shou ld be re vie wed h alf ye arly to see th at the re is n o t en de nc y on p ar t of t he s t at i on st aff to ta ke u nd ue ad vant age of the cod e proced ure. Instruction s co nta ined in p aras 28 03, 2 808 and 2 81 4 A II et seq sh ould b e re ferre d. It sh ou ld be see n th at th e reg iste r is reviewe d mon t hly by th e Accoun ts office. 508. Review of Register of objectionable items and Prov isi onal pa ym e nts . The ge nera l instruct io ns co ntai n ed in para 283 of RAM sh ou ld be followe d in ren ewin g the se re gisters ma in taine d in t he Tra ffic Acco un ts branch . T h e re s ul t s of t he r ev i e w s ho ul d b e re c or de d in t he S el ec t i on Re gister. 509. Miscellaneous Statements (goods&Coaching). T he f o llowi ng mis c el l an eou s st at e me nt s ( lo c al/ f or ei g n) s h ou ld b e c he c k ed m on t hly t o t he exten t p rescrib ed un de r Prog ra mme o f Audit. It sho uld be se en in au dit that th e sta t emen ts ha ve be en co rrect ly prep ared fro m t he releva nt retu rn s and d ea lt with in the a cco un ts o ffice prompt ly an d corre ctly a ccording to the exta nt rules a nd orde rs. 1 . sta t emen t o f o ve rch arge o f Rs.5 an d abo ve(volun tary ref und sta t emen t) 2 . sta t emen t of sp ecial cred its f or twice acco un tal of PW bill/invo ice s 3 . pa id o n cha rges st ateme nt-coa c hing an d g ood s 4 . ad vice of re weigh t me nt o f con signme nts 5 . check of co mmission charges or credit not es 6 . R eg is t e r o r i nv oi c e r el at i n g t o c on s ig nmen t s of f od de r t r af f i c c ar ri ed in famine cond itio ns.Th e items me ntion ed ab ove sh ould b e d one in respe ct o f station select ed f or au dit. 7 . Commissio n pa id to to urist a ge nt. Th is sh ould be ch ecke d in respe ct of the tourist agent selected for audit 8 . O b je c t i on s t a t eme nt of m i l it a ry d ep ar t m ent s a nd ot h er t ha n m il i t ary de pa rtme nt. Principal Director of Audit, Central Railway 206 9 . Military reje ctio n state me nt received fro m the milita ry de partmen t to get her with th e cred it affo rd ed by th e co ntroller of de fence Accounts 1 0. loco coal bills in cluding transfer advices 1 1. c he c k ed of e ar ni ng of f ee der l in es o f C en t ra l Ra i lw a y 1 2. Cartag e b ill (parce ls a nd go ods) 1 3. ou t ag en c y bi l ls ( pa rc e ls a nd go od s ) 1 4. Town du ty state ments. Th es e s ho ul d b e a ud it e d t o t he ext e nt p r es c r ib ed . 510 . Re view of Acc ounts Offic e Work. The following items special to t ra f f i c a c c o u n t s s h o u ld b e s e e n . 1 . Missing and delayed ret urns 2. un ad ju sted cre dit n ote s 3. mist akes po in ted ou t b y the a udito r on be ha lf of wo rke d line comp anie s an d a dmitt ed by acco un ts office 4. Mon t hly prog re ss repo rt s of a ccoun ts(gen eral review) 5. ha l f y ea rl y ar r ea rs r ep or t t o t he Ra i lw a y Boa rd (g en er al r ev i ew ) 6. half yearly review of suspe ns e ba la nc e (g en er al re v i ew) 7. working of the simp lified system of accounting in troduced by the Railway Bo ard 8. Acco un ts office bala nce sh ee t 511. Review of Appraisal Reports. An a nn ua l re vie w of the ap praisal re ports of t he Cont aine r Services a n d of the Freigh t Fo rward in g Sche me wh ich re of rece nt in no vation s o n the Railway- sh ould b e co nd ucte d in aud it. The purpo se o f the review is to se e whe t he r th e ret urn o n th e ca pital in v es t e d as a nt i c i pa t ed has b ee n r ea li s e d f o r n ot . (c/ f P AC ' s re c o m m e n d a t i o n n . 4 c o n t a in e d i n p ra 1.II of 109th re port of the PAC(197374). Th e fo llo win g fu rth er po ints sh ould also b e ke pt in vie w while co nd ucting the review. i. m ai nt e na nc e a nd de preci at io n c harg es o n t he n ew l y b ui l t c o nt a in er s ha v e b ee n i nc ur r ed in re s pe c t of t e rmi na l b ui ld i ngs h av e als o b een includ ed . ii. cost of RPF staff post ed in the con t ain er termin al b uild in gs and pro portion ate co st o f sta ff in co mme rc i a l de pa rt m en t et c . f or t hi s service h ave bee n ta ken into account iii. cost o f do cumen t atio n an d ma rsh alling at ce rtain ya rd s en ro ute have be en c ha rg ed f ul l y . iv. th e unit cost of mainte na nce of con t ain er flats a nd lin e ha ul co sts ha v e b ee n w or k e d out correctly. v . life of th e re con ditione d BF Used as con t aine r fla t s h as b een pre scribe d co rrectly an d n ot a s for th e n ew on es vi. c os t o f h au la ge o f b ox w ag on s u s ed t o m ee t t he s h ort ag e in c on t ain er f la t ha s be en re c k on ed c or re c t ly . (CAG' s Pr. Directo r of Aud it' s ord ers da ted 9 . 7.7 5 on file N o . A u / C O R / V I / 4 / 7 2 -7 3 . 4 9 / N). 512. Audit of computerised accountal of traffi c receipts. The following additio nal checks should be exercised in audit on the various documents produ c ed as a re s ul t o f c om pu t eri s at i on of a c c ou nt s o f t r af f i c r ec ei pt s . 1. Re vie w o f mo nthly in corre ct st ateme nts. In ad dition to tracing o f un de rch ar ges n ot i c ed a s a r es u l t o f c hec k of i nv o ic e s in t o t he in c or re c t Office Manual 207 state ment , the se sta t emen ts sho uld b e reviewed with a view to verifying t he a c t io n t ak en b y t h e Accounts office for issue of error sh eet s to the station co ncerne d. In re gard to foreign inward traffic the issue of error she ets etc. sho uld be ch ecke d with th e en trie s in th e re gisters showing re ceipt of in correct in voices from Foreign Railways. Similarly, while c he c k in g Pa ss e ng er c l a ss i f i c at i o n als o, i n ad dit io n t o t r aci ng t he e rr or s no tice d in t o the inco rrect list, th e in correct list as a whole fo r the station sho uld be re vie wed a nd ad equ acy o f the a ction ta ken by the Accounts office ensure d. 2. Che ck of Co ntinu ity o f In vo ices. In ad dition to ch ecking the cont in uity of pa id in voices from the reg iste r o f Paid Invo ice Boo ks su pp lie d to the station s and t hat o f to Pay in voices wit h the co mme ncing a nd closing nu mb ers g ive n in the cove ring memo received from sta t ion s, the contin uity should also be checked by comparing the first entry in the curre nt mo nth s p aid st ate me nt (Mon th of acco unts selecte d for a udit) with t he last en try in the previou s mon t h' s pa id state me nt bo th fo r Pa id an d To Pay invoices. Th e con t inuity o f in voices wit hin th e Pa id state ment shou ld a lso be che cke d. (CAG ' s le t t er no . 19 41 -1 60 -R AI / 8-6/ 7 1 d at e d 1 0. 6 . 71) 3. Wh ile all invo ice s se le cted fo r aud it may con t in ue to b e checke d in re ga rd to class, ra te, oth er cha rg es etc. calculation o f freigh t (rate x weigh t ) in re spect o f invo ice s wh ere su ch ca lcu la t ion is d one on the c om pu t er an d n ot m an ua ll y s ho ul d b e c he c k ed only t o t he e x t en t prescribed in CAG 's le tter no .10 07 -O SD/(C)/44 /71 da ted 30 .3.7 2. 4. The accu ra cy of th e to tal of th e p aid sta t emen t bo th in re spect of freigh t an d weig ht h and led by th e railwa y sho uld b e ch ecked . 5. The corre c tne ss of the tota l o f the amo unt sh own und er Invo ice d Freigh t T o Pa y in t he ou t w ard ab s t r ac t s ho ul d b e m an ua ll y c he c k ed an d t he in ked e ntries in t he ab stract(en t ries ap pe aring in the d elivery b oo k o f the station bu t no t in the Machine Prep ared Abstra ct ) sh ould be ve rified with the accompanying invoices. 6. to ensure that inward a b st ra ct se n t b y st a t io n alo ngwith th e ba lance sheets, correspond to those received in t h e Ac c o u n t s o f f i c e f ro m t h e foreign ra ilways, th e en trie s in th e Registe r sho win g receip t o f Ma chine Prep ared Abstracts from foreign ra ilways sho uld b e scrutinised and s ee n t ha t t he s t at i on r et ur ns c or re s po nd t o all t h e s he et s r ec e ive d f r om foreign railways. 7. The cre dit on accou nt o f Paid on ch arge s take n in th e stat io n Ba lance she et sh ould b e ch ecked wit h refere nce t o the Mach in e Pre pared Pa id on c h arge s t at e me nt a nd i t s ho ul d b e s ee n t h at t h e de t ai l s o f i t ems re lating to Paid o n ch arges co rre s pon d to the en trie s in the Pa id on c ha rg es s t a t eme nt . I n orde r t o s ee t ha t d eb it i s be in g f or c ed c or r ec t l y ag ainst th e sta t io n to which th e con signme nt is re bo oke d, se le ctio n o f in voices fo r a ud it sh ou ld be so d esign ed a s to d elibe ra t ely in clude some re boo king in voices within the pe rce nta ge prescrib ed oth erwise an d is shou ld be tra c ed aga in st the re levan t de stin ation statio n in the Machin e Prep ared ou tward Abstract. 8. The che ck o f invo ice ma rke d for we ig hme nt en ro ute sh ould b e carried out in re spect of invoices issued by statio ns selected for audit. Check of su ch inwa rd invoices o f sta t io ns se le cted ne ed no t be carried ou t. Principal Director of Audit, Central Railway 208 9. Th e t ot a l n um be r of c ar ds as s ho wn i n t h e s t at i on F o rwa rd in g M em o f or the se le cted sta t io ns shou ld b e ag re ed with t he nu mber o f ca rd s in the card to tap e prog ra mme a nd th e gran d tota l o f ca rd s in th is prog ra mme sho uld b e ag re ed with th e t ota l numb er o f cards fin th e pa id sta t emen t an d t h e out wa rd a bs t r ac t p ro gr am m es . R un t o R un t ot a l s of t he w ho le system should be ch ecked. 10. The action take n b y th e a ccoun ts o ffice o n e ntrie s linked into the Machine Prepare d Abstra ct (c onvert e d) b y th e de stinat io n station s sho uld be verifie d in resp ect of lo cal traff ic with refere nce to the original Invoices themselves and that the with drawa l o f de bit was a lso correctly advised. As f or foreign tr aff ic, a list sho uld be sen t to the Pr.Direct or of Au dit o f th e orig in atin g railway f or similar ve rification (in clu ding a n il retu rn whe n th ere a re no such cases). (CAG' s lette r no. 100 7-OSD/(C04 4/7 1 d ate d 3 0.3 .72) Office Manual 209 CHAPTER XV TRAFFIC AUDIT (Coaching Accounts) 5 1 3 . G e n e r a l . The instruct io ns contained in Chapters XII & XI I I of the Ra ilway Aud it Ma nua l re gard in g a udit o f T ra f f i c ma t t e r s a n d t h a t r e la t in g t o the exte nt o f a udit e t c. a s given u nde r Lo cal Tra ffic Au dit co ach in g/g ood s in th e Se cre t Me mo ra nd um of Instructio ns (1 983 ) a s a me nd ed from time to t im e s ho ul d be r ef er r ed t o. A ll t he s t at i on s o n t hi s r ai l wa y s h ould be cla ssified as ma jo r an d minor a nd grou pe d into suita ble u nits a nd nu mb er of units selecte d to the e xt ent pre scribe d for a ud it of coa c hing a ccoun ts in c lu di ng b al an c e s he et . Th e v ar i ou s d ocume nts lead ing to th e che ck o f bala nce sh ee ts are d ea lt with in the fo llowing pa ra grap hs. 514 . Pas se nger cla ssi fic ation. In resp ect of th e station s selecte d for aud it th e loca l an d fo re ig n pa ssen ger cla ssif ica tio ns fo r the mo nth o f au dit and th at fo r the p re vio us mo nth sh ou ld b e ob taine d. O t he r do cumen t s re quired for au dit o f pa sseng er classifica tion s are a s un der. i. ii. iii. iv. v. vi. vii. viii. ix. Co nce ssio n vo uche rs Co lle cted and no n-issued tickets Ac c ou nt s as w el l a s c o lle c t ed f o ils of Blan k Tic k et s (B PT) Stat emen t of o ut o f series List of passenger ma ster record s L i s t o f i n d e x n o . o f t i cke t s i ssu e d t o t h e st a t io n Stat emen t of sta t ion fig ures Ff in al incorrect statement Stat emen t of Passe nge r Un match ed Basic Cards. Pap er 2. The pa sse ng er cla ssif ica tio n sh ould be ch ecke d to t he e x ten t prescribed in a ccordan ce with instru ct io ns cont ained in Pa ra s 2 10 9-AII et seq . It sh ou ld be see n t hat the tickets a ccoun ted for in the pa sseng er classificat ion relate to the ser ie s s up pl ie d t o t h e s t a t io n. 3. T he c ol le c t ed t ic k e t s s ho ul d b e exa mi n ed t o s ee in t er -a l ia w het h er t he lo c al b l ank p ape r t i c k et s h av e b ee n c orrectly accounted for by the stations and whe t her th e h ig he s t numb er of su ch a ticke t amo ng t he co lle cted ticke t is no t high er tha n th e closing n umbe r o f t he m ont h of t h e i s s ui ng s t at i on in the series of t ickets. 4. T h e s t a t eme nt o f n on is s u ed t i c k et s a nd c ut piece s o f t i c k et s s o l d a t half f ares should be audited in accordance wit h para 2 1 0 8 - AI I . T h e co lle c ted PTO s an d oth er con cession vou che rs shou ld b e che cked with re ference to para s 2114 and 15-A-II. T h e a u d it o f s e a s o n t ic k e t s i n c l u d e d f in t he c la s s if i c a t io n s h ould be d on e i n t h e s a m e m an ner a s f or prin t ed t ic k e t s . 5. T he t ot a ls o f t he c la s s if ic a t io n s h ou ld be c h ec k e d a nd t r a ce d i nt o t he Gen eral summary an d th e la tter into the Balance Sheet. 515 . Audit of c ol l ec te d tick ets a nd Tic ket Collec tors ' Reports. Ap art f ro m c he c k of co l le c t ed t i c k et s a s m en t io ne d a bo v e, a d et a ile d c h ec k o f co l le c t ed t ic k e t s t o t he ex t e nt p re s c ri be d s h ould b e c a rri ed o ut i n c e nt r al aud it. The following poin t s sho uld b e se en. i. Th e ticket s are inva riab ly nipp ed Principal Director of Audit, Central Railway 210 ii. Th e tickets collecte d a re in resp ects g enu ine a nd are oth erwise in orde r Th e d ate s imp re ssed o n t he t icke ts are clea r and tha t th ere is n o un aut horised de facing o f ticket s in an y man ner. In a dd ition checks prescribed in para 2104 AII should be exercised. T h e pe rce nt a ge o f t i c k et s m i s si n g f ro m c o llec t io n is k ep t t o t he minimum say 7 to 8% . iii. iv. 2. At th e time of a nnu al re view of th e working o f the Accou nts De partmen t t he va r io us r eg is t e rs m a in t ai ne d i n t he Accounts office in connection with the intern al check of collected ticket s s ho ul d be r e vie we d t o en s ur e t ha t proper ch ecks are exercised. A review o f t h e t i cke t c o l l e c t o rs ' r e p o r t s sh ou ld be carrie d ou t on ce a qu arter to the exten t p re scribe d to see in part i c ul ar t ha t t h e pe rc e nt a ge o f t i c k et s m i s s in g is k ep t at a min im um (sa y not abo ve 7 to 8% ) (CAG' s lette r n o.RAI I/T-R1 0-31/ 50 date d 8 . 12 .55 ) 3. If th e TC Rep ort select ed f or aud it un der th is p arag ra ph pe rta in s to a ju nction station the ticket s sh own in t he jun c tion TC Rep orts sho uld be traced in the passenger classification of t h e s t a t i on s el ec t e d f o r a ud it . 516. Returns of Tourist agents. The Accounts office maintains a Re gister o f To urist Ag en ts on th is ra i lw a y. A l i s t o f s u c h t o u r i s t a g e n t s sh ou ld be ke pt in th e selectio n re gist er an d se le ctio n mad e eve ry mo nth to the exte nt prescrib ed . Th e re turns shou ld b e aud ited in t he same mann er as passenger classification verifying inter-alia the correctness of the rates ch arge d, the refu nd s a llowe d on un use d ticke ts a nd th e commission cla ime d is in acco rd an ce wit h th e ag re eme nt e x ecut ed. It sho uld a lso be ve rified th at th e n et a mou nt d ue to th e railway h as b ee n co rrectly worked out and receive d by the Ra ilwa y Administration . 2. The fo llowing po in t s s h o u l d b e se e n : i. ii. iii. iv. v. Th e secu rity de po sits p aid by th e to urist a ge nts re ad eq uat e with refere nce to sales return s. Th ere is no d elay in th e submission of retu rn s a nd remit t ance s b y t he t ou r is t a ge nt s . T he t ou ri s t a gen t s a re re qu ire d t o r end er th eir acco un ts mon t hly a nd sh ould remit th e sa le p ro cee ds and s u b m i t t h e i r s a le s st a t e me n t s wi thin five workin g days after the expiry of each fortnight. (RB's letter no. TRC/II/ 2025/65 dated 19.7.67) Th ere are n o ou tstan ding o f sale p ro cee ds of railwa y ticke ts lying aga inst th e to urist age nts for un duly lon g p erio d. Th e sto ck reg isters are mainta ined by th e Acco un ts office and ke pt up to da te an d that large sto ck o f ticket s is n ot allowed to remain with the agents for unduly lo ng period. In respect of transactions of forei gn ra ilw ay s , t he c on t in uit y o f a ll the ticke t s issu ed shou ld be checke d with refe re nce t o the s u p p ly s t a t e m e n t s . 517 . Ex ce ss Fa re Returns. T h e e x c e s s f a r e r e t u rn s , Tra ve l lin g T ic k e t Ex ami ne rs ' R et u rn s o f t he s t a t i on s s e le c t ed f or a ud it s h ould b e c he c k ed t o the exte nt prescribe d in a cco rdan ce with th e provisions of pa ra s 2 15 0-A II et se q. Th e fo llowing po in ts sho uld be se en i. t h e d ou bl e s i d ed c ar bo n h as b een u se d in t he i s s ue o t hes e ticket s Office Manual 211 ii. th e se ries o f th e tickets u s ed sho uld b e co mp ared with tho s e o f the Excess Fare Ticket Books issued to the stations iii. t h e c o l le c t e d e x ce s s f a re t i c k e t s sho uld also be compa red with th e accou nts office copies to ring to lig ht an y po ssib le man ipula t io n o f the figu re s of th e ch arge s collecte d. iv. in the case of cance lle d ticket s bo th t he accou nts office and p asse nge r foils sh ould ha ve be en sub mitte d to the Accoun ts office. The register ma intain ed in the Accounts office for wa tching th e con t in uity of the numb ers o f EFTs issue d sho uld be reviewed. 518. Luggage, Horse, Carriage and Dog r eturns. Th ese re turns sh ou ld be checke d to th e e x ten t prescribe d with re feren c e to th e p ro v ision s co nta ined i pa ra s 2 202 -A II e t se q. The rules re la ting to th e bo oking o f lu gg age , h orse, carriag e etc. are pu blish ed in the In dian Railways Co nf e re nc e A s so c i at i on (I R C A) Co ac h in g T ra f f i c w h ic h s h ou ld b e bo rn e in mind . 519. Demurrage and wharfa ge on Parcels and left luggage. These sh ou ld b e che cked to th e exte nt prescrib ed with refere nce to p ro v ision s o f pra 2210-AII. It should be seen that the amount accounted for in the re t ur ns c he c k ed w it h t he amou nt t a k en t o de bit i n t h e b al an ce s he et o f these stat io ns. 520 . Chec k of Coaching Tra ffic -Non-gov ernme nt Ra ilway s. These ra ilways sho uld be g ro upe d into un its a nd u nits se le cted fo r a udit to the extent prescribed for both outwar d and in wa rd traffic. The checks pres c r ib ed f or a ud it o f v ar io us d oc um e nts/retu rn s de scribe d in th e ea rlier parag raph s a pply to non -g ove rn ment railwa ys a lso . In ad ditio n, the co rre c tne ss o f ap portion me nt o f earn in gs be twee n the gove rn men t and non -G ove rn me nt Railwa ys made th ro ug h Divisio n shee ts sh ould be ch ec k e d i n a ud it . 521 . Specia l Tra i ns-Touri st Cars etc. A re c or d o f a ll t h e s peci a l t ra in s ru n is main tained in the Accounts o ffice. Selection of cases for audit sh ou ld b e ma de from th is re gister to th e e x ten t p re scribe d. While sp ecial tra in s are che cked mo nth ly, t ourist cars are che cked qua rt erly. It sh ou ld be se en tha t i. necessary deposit has been collected ii. ch arge s as sh own in the sp ecial t i c k et s a nd c ol l ec t e d b y t he sta t ion from wh ere specia l tra in starts a re a ccou nte d for in the p asse nge r classification an d ba lance shee ts of th e sta t ion to e nsu re corre ct acco un tal of the charge s an d iii. th e refu nd ha s be en corre ctly ma de 2. Ch arge s for sp ecial trains, tou rist ca rs etc.sh ould be che cked in accordance with the rules given in the IRCA Coaching tarif f. the tour progra mme issue d by th e COPs a nd t he co mp osition st ate me nt sh ould a lso be se en . 3. In case wh ere spe c ial tra ins are ru n fo r o wn con ven ie nce by th e Railwa y Administration f or u s e of to urists e t c.with ou t any req uest from the la tter or fro m any t ourist ag en cy on the ir be ha lf the san ctio n sh ou ld be tho ro ug hly in vestiga t ed fro m a h ig he r a udit po in t of view to se e whet her the administration is justified in providing t he ac c om m od at i o n an d t h e f a c il i t ie s Principal Director of Audit, Central Railway 212 in e ac h c as e a nd w he t he r i n do in g s o, t h e f i n a l i n t e re s t s o f t h e r a i l wa y s are d uly bo rn e in mind . 522. Audit of parcel way bi lls. T he pa rce l w ay b il l s o f s t at io ns s e le c t ed for au dit sho uld be aud it ed to th e e xten t prescribe d. Befo re taking se lection it sho uld b e e nsu re d th at a ll wa y bills a s pe r t he abst ra cts ar re ceived. Wh ile a ud iting the parcel way b ills th e fo llo win g po in ts sho uld be se en . a. Local Traffic Forwarded Paid. i. ii. iii. iv. v. vi. vii. viii. ix. th e cop y of t he Parcel Cash Bo ok received in account s o f f ic e f r o m th e sta t io n is in th e p re scrib ed form and is a ca rb on copy. All th e acco unt s fo ils o f t he Pa id P.W b ills men t ione d in the cop y o f t he c as h bo ok ha v e b ee n a c t ua ll y r ec ei v e d The PW bills a ccou nte d fo r are in co nsecu t ive o rd er a nd are in c on t i nu at i on of t he c lo s in g numb er of t he Pa rc e l w ay b il l s i s s ued i n p re v io us m o nt h s. The cance lle d way bills re en tered in the Ca sh Bo ok a nd a ll the th re e f oils oth er tha n the record foil are re ceived a lo ngwith the cash Book. n ec es s a ry c e rt if i c at e h as b een f u rn ish ed in t h e s u mma ry p ag e o f th e ca sh boo k th at the amo unt sho wn in the Ca sh b oo k ha s b een ta ken t o th e de bit side in the ba la nce shee t fo r th e mon t h und er th e re levan t he ad a nd n o pa rce l wa y b ills othe r th an those includ ed in the ca sh b oo k h ave be en issue d d urin g th e mon t h a t the statio n for this traffic. A nil re turn ha s be en received wh ere th ere ha s be en no tran saction o f ou tward pa id tra ffic during a month an d the la st n um be r of t he pa r ce l w ay bi l l is s u ed pre vi o usl y i s n ot in c lu de d in th e ca sh bo ok. The mach ine umbe rs of pa id p arcel way bill boo ks su pplied to a ll loca l sta t ion s are a dvised by t he supp lyin g o ffice to the Traffic Acco un ts o ffice. It sho uld be see n whet her the n umbe rs of PW b ills re ce ived a nd checke d ta lly with tho s e sho wn in th e ad vice s o f s up pl y of b oo k s t o t h e s t a t i ons c once rn ed . The selected parcel way bills sho uld be a ud ite d in acco rd ance with the p rovisio ns of pa ra s 222 8-AII e t se q an d traced in to the c as h b oo k of t he s t a t io n. T he t o t al o f t h e c as h bo ok f o r t he mon t h sh ould be ch ecke d an d co mpared wit h th e amo un t shown in t h e ba l anc e s he et o f t he s t at i on f or t h e m on t h a ga in s t i t em Pa rcels traffic outward paid (local/fore ig n). In the case of traffic pertaining to mo tor cars, carriages etc.the p aid traffic sh ou ld be ch ecked in accordance with the instructions i n p ra 2 2 3 9 -A I I a n d t ra ce d i n t o received abstracts and summarie s. b. Local inward to-p ay. Th e in ward to -pay parcel way bills (guard foils) sh ou ld b e checke d with refe re nce to provisions in p aras 22 13-AI I e t seq and trace d in to rece ive d ab st ra cts. The to-pay total in the received abstra ct s sho uld be ch ecked a nd th e tota l of ea ch ab stra ct trace d in to the su m ma r y. T he g ra nd t ot a l of t h e s um m ar y s ho ul d a l s o be c he c k ed and tra c ed in to the ba la nce she et o f th e sta t ion. Compa rison o f received su mmarie s of the stat io ns selected fo r audit with the forwarded summaries of t h e f o rwa rd in g s t a t i ons . Office Manual 213 2 Wit h a v i ew t o e ns u ring t he ac c ou nt a l o f al l t o- pa y it e m s by t he re ceivin g sta t io n, th e inward su mma rie s o f the sta t ion s se le cted for au dit sh ou ld be co mpa re d with the out wa rd summarie s of th e forwarding station s on the li lines indicted in paras 2218 -AI I e t se q . Pa rce l wa y b i l ls n ot ac c ou nt e d f or i n t he r et ur ns b y t he r ec ei v i ng s t a t io n s ho ul d be t r ace d in the Re gister o f un accou nte d fo r parcel wa y bills. 3. Re gister o f u nacco un ted fo r Parcel wa y b ills. Pa ra 2 22 5-AII and Not e 2 belo w p ara 1 74 o f RAM shou ld be see n. This re gister, mainta ined in the Accou nts o ffice, sh ou ld be re viewed an nu ally t o se e th at th ere are n o o ld it e m s and p ro mp t an d a de qu at e s t ep s are t a k en by t he Ac c ou nt s o f f i c e t o cle ar t he m. 4. Foreign Traffic-Out ward Paid. Th e checks detailed above for lo cal tra ffic sho uld be ap plie d mu tat is-muta ndis t o fo re ign traffic o utward pa id parcel way bills also. Co mp arison o f g ua rd foils o f se lecte d de stin ation st at i on s t o t he ex t en t pres c r i bed w it h t he e nt r i es i n t he c as h b oo k of t he forwarding station s selecte d fo r normal mon t hly au dit sh ould be ma de . (RAI/ 17-2/ 65 d ate d 24 .11 . 65) In case , no g uard fo ils in re spe ct of the st ation s sele cted fo r au dit h ave be en rece ive d in th e acco unt s of fice , o nly a pre scribe d p ercent age of t he gua rd foils actu ally re ceived in the Ac c ou nt s o f f i c e s ho ul d be co m pa re d with th e co rresp on ding cash bo ok. 5 Fo re ign Traffic I nward To-pa y-Th e pa rce l way bills (g ua rd fo ils) sh ou ld be che cked on th e inward ba sis as pe r in stru ction s con t aine d in p ara 21 8AII e t seq an d trace d in to rece ive d abs t r a ct s. T h e t o t a l s o f t h e a b s t ra c t s sh ou ld be c he c ke d a nd t ra c ed in t o i nw a rd s um m ar y . T he g ra nd t ot a l o f t he in wa rd su mma ry sho uld be ch ecke d and t ra c ed into th e ba la nce sh ee t o f t he s t a t i on. C o mp aris o n o f f o r wa rd ed abst r act s r ec e ive d f r om f or ei gn ra ilw ay s w i t h t he r ec ei v e d a bs t r ac t s an d p re pa ra t i on of lis t s o f una ccou nte d fo r p arcel way b ills. 6. A l l t he s t at i on s o f t hi s ra ilw ay ha ve be en group ed in to un it s a nd u nit se lecte d e v ery mon t h to the exte nt prescribed . The fo rward ed ab stra cts re ceived from all th e railwa ys (go v er nmen t) sh ould b e compa red with the re ceived abstra c ts of th e sta t ions in clu de d in th e u nits select ed and una ccou nte d for it ems tra ced int o the list prep ared by the Accou nts Of fice . Th is compa rison is don e in the fif t h fo llo win g mon t h. 7. Fo re ign Tra ffic (no n-govt Railwa ys). Se le ction of no n-go vernmen t Ra ilways is ma de eve ry mo nth to t he exte nt p re scrib ed for th e ch eck o f traffic booked from this railway to n o n -g o ve rn e m e n t ra i lwa ys vice -ve rsa . a. Tra ffic bo oke d to the n on -Go vt.Railways. Th e pa rce l wayb ills a ccoun ted f or i n t he div i s io n sh ee t s r ec e iv e d f ro m t h e s e le c t ed n on -g ov t . r ai l wa y sh ou ld be che cked an d trace d i n t o t h e d i v i s io n s h e e t s . b. Traffic b ooke d to th is railway b y no n-Govt.railway. I n resp ect o f the selected non-Govt .railway the parcel way bills accounted for in the division sh ee ts p repa re d by this ra ilway an d sen t to then -gove rn ment railwa ys sh ou ld be che cked an d trace d i n t o t h e d i v i s io n s h e e t s . 8. Tracin g of undercharges into Regis t e r o f e x e m p t e d D e b it / E rr o r s h e e t s . Un de rch arge s a lre ady n oticed by Acco unt s O ffice an d marked in t he p arcel wa y b ills (local an d foreign ) selecte d for aud it sh ould b e tra ced in the Re gister of exe mp t ed d eb its/e rrors s hee ts a s t he case ma y be t o ensu re that ne cessary actio n h as act ually be en take n. Principal Director of Audit, Central Railway 214 523 . Te legra ph Traffic Rece ipts . Th e re turns submitted by the Station se lecte d for au dit sho uld be checke d with the me ssag e draf ts and co rre c tne ss of th e charg es co lle cted ve rified as ind ica ted in pa ra s 224 5AI I e t s eq . T he t o t al o f t he r et u rn s s ho ul d be t ra c ed i nt o t he ba l anc e sh ee t . S t at e m ent o f a pp or t i onme nt of e ar ni ng s f r om i nt e rch an ged t el eg ra ms s h ou ld be c he c k ed as i nd ic t e d i n no t e b el ow pa r a 17 4 o f R AM . 524. Audit of Sundry Earnings. Th e amou nts sho wn in the b alan c e sh ee t of th e sta t io ns se le cted for a ud it sh ou ld be checked with the sundry cash re t ur ns o f t he s t at i on s . I t s ho ul d b e s ee n t h at f u ll pa r t icu la rs o f t he re ceipts re given in t hese re turns in de tail to en ab le t he Accoun ts office to allo cate these credit s correctly. 525. Audit of Coaching Balance sheets . The au dit of co achin g ba lance sh ee t sh ou ld be che cked with refere nce tod the instruct io ns con t aine d in Ch ap ter XXVII o f Ind ian Ra ilway Co de for th e a ccoun ts de pa rtme nt Part I I . T ra f f i c Ac c o u n t s . 526 . Postal Bill s. Bills are submitted by the Accounts office to t he postal department in respect of the following. 1. 2. 3. 4. Extra a ccommoda tion supp lie d to Po stal Dep artment Empty a nd lo ad ed ha ulag e o f Po st al van s Fixe d a ccommoda tion supp lie d to Po stal Dep artme nt Ma il bags carried under t he weig hment system. 2. Th e bills sho uld be se le cted fo r a udit to th e exte nt prescribed and ch ecke d to see whe t he r the ra te charge d fo r ea ch type o f tran saction s re ferre d to ab ove are co rrect as pe r the state me nt re ceived fro m CO Ps. 527. Through and two route season ti ckets . Throu gh rou t e se ason ticke ts are issu ed by the Cent ra l RAILWAY sta t io ns t o sta t ions on the We stern Ra ilway and vice ve rsa . Du rin g th e a nn ua l check of t hroug h and two ro ute sea s on tickets th e app ortion me nt made b y th e Cen t ra l Railwa y and Western Ra ilway as laid d own in Ra i lwa y Boa rd ' s l e t t e r n o . 6 4 -ACI I45/2 da ted 24 .2.6 4 fo r the selecte d mon t h sh ou ld be see n. 528 . Che ck of out agenc y cha r ges. In additio n to the ra ilway fare s, ch arge s for p assen ge rs, lu gga ge , pa rce ls e t c. ca rrie d b y bu s from the ra ilway station s to th e ou t a ge ncies are re covered b y th e ra ilway an d pa id t o t h e c o n t r a c t o r. 2. Th e o ut/city b ookin g a gen ts sub m it mo n t h ly t o t h e A c c o u n t s o f f ic e se para te bills for local/through forward e d a nd re c ei v ed t ra f f i c . T he s e a re to be che cked ann ua lly to the exte nt p re s c ri be d a nd in ac c or d ance w it h t he in stru ctions con t ain ed in cha pte r XXV of In dian Railwa y Co de fo r Accoun ts De part ment Volume I I. 529 . Concurre nt chec k of Pas ses is sue d to Members of Parlia ment. Mo nth ly state ments sho win g t he cost of jo urne ys pe rfo rme d by sp ou ses o f the me mb ers of L ok Sabh a/Ra jya Sab ha as a lso the ir at tend an ts tog eth er with the collecte d jo urne y forms are s u b m i t t e d t o a u d i t b y A c co u n t s o f f ic e f or c on c ur r ent c he c k be f or e s en di ng t he b il l s t o t h e L ok / R a jy a s a bha se cretariat. These sh ou ld b e che cked to th e exte nt prescribed e very mo nt h . 530 . Veri fic ation a nd c ertifi cation of Pilgrim Ta x statem ents . I n t e rms of Article 179 (I ) of th e Con stit ution o f Ind ia , the taxes levied an d collected Office Manual 215 by the G ove rn me nt o f India a nd assign ed to the State s un der Article 269 (i) ib id , sh all be asce rta ined a nd certifie d by th e CAG of I ndia . Fo r this purpo s e, t h e s t at e me nt s o f p il g rim t ax c ol le c t ed by ea ch ra ilw ay i n r es pe c t of pa ssen gers bo oke d from/to t he n otified station s re compiled by the Accounts office and certified by the Pr.Director of Audit. The checks as la id do wn in CAG' s lette r n o.6 23 7/RAIT/1 7-74 /69 da ted 2 4.1 2.6 9 a nd 1 94 1160-RAI/8-6/71 dated 10.6. 71 should be exercised. 2. Wit h e f f ec t f r om 1 . 10 . 81 , t he Pi l gr i m T ax i s b ei ng c o mp i le d w it h re feren c e to d th e n umb er of passe ng ers bo oke d to an d fro m not ified st at i on s is d et a iled i n a m a nus c r i pt r eg is t e r w h ich s ho ul d b e s i gn ed b y t he co n c e rn e d Bra n c h O f f ic e r ( Au /T.Cog/VI -2/Vol.II dated 1. 2.89) 531 . M i s ce l l an eo u s c ash r em i t t an ce r e tur n s . Miscellaneous cash re mitta nce retu rn s a re sub mitt ed by various of fice s to th e Acco unt s of fice . Th e sta t emen ts sh ou ld be ch ecked to the exten t prescrib ed e very mo nth . (D C AS CP O O N o . 6 5 (a ) d a t e d 2 0 . 5 . 5 6 ) 532 . Chan ge s in au dit proced ure a s a result of co mput erisa t io n o f accountal of traffic re ceipts Pa ssenger c l a ss i f i c a t i o n . Wh ile s e le c t in g t h e se r ie s i n pa s s eng er c la s s if i c at io n f or a ud it , s er i es t ha t h ad o ut of s er ie s issu es in th e p reced in g mo nth sho uld b e se le cted for scrutiny as fa r a s possible to the e x ten t prescrib ed . It sh ou ld be se en th at a ll serie s, with (o ut of serie s ) issue s in the cu rren t mo nth a re e nte re d in t he ou t of serie s re gister maint aine d b y Traffic Acco un ts Bra nch. Th is re gister sh ould be re vie wed qu arterly with a view to verifyin g th at the incid ence of ou t o f se rie s is not sp ecially h ea vy o n an y p articular st ation a nd th at th ey re accou nte d fo r p rope rly. 2. Passenger Ma ster Records. (i) The list of Passe ng er Ma st er Reco rd s sh ou ld be che cke d fo r t he in dex n umb ers selecte d fo r a ud it a nd it sh ou ld be se en th at th e d ista nce s b etwe en a pa ir of sta t ions th e p ilgrim ta x le v ia bl e a nd f ar e c ha r gea ble a re c or re c t . T he f ar e so c he c k ed s hou l d be agreed with the fate in dicated din the Passenger classification. i. T h e e nt r i es i n t he P as s en ge r c la s s if ic a t io n s ho ul d b e ge nera ll y e xamined with re feren c e to th e ind ex nu mbers of ticket s su pp lied t o t h e s t a t io n s . ii. Th e ent ries in t he pa ssen ge r cla ssification should be checked w i t h re f er en c e t o t h e h ig he s t nu m be r o f t i c k et s c ol le c t ed s p er ticket collectors reports. iii. T h e amou nt o f f a re s re alize d a s p er cla s s if i c at i o n s ho ul d be a gree d with the co rre s pon ding en try in th e state ment o station s figu res an d t ra c ed in to th e co ach in g b alan c e she et iv. A lis t i ng of p as s en ge r f ar es t a pe s h ou ld be c he c ke d t o s ee t ha t the rate of fares is in accordance with the rates notified by the Railway Board. v. State me nt ch ecking o f fa re s sh ou ld be e xamin ed to see th at (i) co rrectio ns to Pa ll cards ta pe a re ma de with out d elay a nd (ii) th ere ha s bee n no le aka ge o f reve nu e owing t u nd ercharge s h aving re maine d u nd ete cted be cause of incorrect fa re rate s on PALL CARDS TAPE. vi. Cases marked as NO CL ASF in the f i n a l i n co rre ct l ist sh o u ld b e a gree d with th e record of o utsta nd in g pa sseng er cla ssificat io n in Principal Director of Audit, Central Railway 216 th e Traff ic Accou nts Bra nch an d sh ou ld be see n t hat ad equ ate a c t io n h as b ee n t a k en t o c a ll f o r t h e s a m e . vii. Th e co rrect ness of action ta ken on th e ite ms printe d in the sta t eme nt Listing o f Pa sseng er un ma tche d Ba sic ca rd s sho uld be checked viii. The record s of Traffic Accounts B ra nc h s ho ul d b e exami ne d t o see that the cases of undercharg es / o v erc ha rg es t ak e n u p w it h sta t ions a re pro mp t ly settled . (CAG's let t er no.896-OSD(C)-42/71 dated 14. 3.72 & PO O 977 dated 14 .67 . 72 ) Office Manual 217 CHAPTER XVI TRAFFIC AUDIT (STATION INSPECTION) 533 . Traffic Audit Inspe ction. Scope of Audit. T he s c op e o f au dit o f st ation insp ection s h as an d ite m b ee n out line d in para s 4 24,4 49 , 45 0-RAM, para 66 XI-L oca l Tra ffic Audit Co ach in g/G ood s o f M.O In stru ctio ns, the st at i on s a re c la s s if i e d as Ve ry big , Ma jo r a nd Mino r on the b asis of an nu al earnin gs of t he sta t ion s. Big stat io ns are d i v id ed in t o d if f e r ent u ni t s l ik e Pas s e ng ers , Pa rc e l a nd G oo ds . e ac h un it is se lected fo r insp ection according to the ext e nt p re s c ri be d. Freq ue ncy a nd dura t io n o f stat io n insp ection : The pe riod is as u nde r: Ve ry big on ce in two yea rs Major once in three years Min or on ce in ten years 534 . List of Stations . A c o m pl et e lis t o f v er y big, m a jo r a nd m in or s t at i on s in c lu di ng L PO s , T ou ri s t a ge nc y , c it y bo oki ng a gen c y / of f ic e i nd ic a t i ng t he mo nt h and y ea r i n w hi c h t hey w e re la s t in s pe c t ed , earnin gs , nu m be r o f TI A days, a nd n umbe r o f d ays fo r au dit inspe c tion sh ould b e mainta ined by the Traf fic Audit Sections and the same should be updated from time to time , ch an ging the cla ssificat io n of st ation s b ase d o n current fig ures of e arning s as an d wh en fou nd nece ssary. 2. Bef ore reco mme nd in g name s of statio ns fo r Pr.Dire ct or of au dit' s app ro v al t he s pec i a l f e at u re s o f t he s t ation such a s existen ce of siding s, se aso na l traffic, bo oking o f sp ecial co mmo dities, ea rn in gs an d an y sp ecial facilities af forded should be taken in t o a c c o u n t . T h e latest TIA's reports sh o u ld b e r e f e rre d t o . 3. The prog ra mme of th e Tra ffic Au dit Insp ection sho uld b e kep t co nfid ent ia l. The Officers and staff sh ou ld e x ercise eve ry p ossible care to preven t le aka ge o f inf orma t ion a s to t heir mo vemen t s in th is reg ard. The days allowe d for station in spectio ns as sho wn ab ove inclu de th e time for prepa ration , discussion , editing , compa riso n etc. o f the in spe c tio n rep ort. If in a ny ca se o ve ry b ig sta t ion, e.g . zon al h ead qu arters sta t io n, the work in volved is to o hea vy to b e take n up, the sta t ion may be split in to mo re than o ne viable un it fo r purpo ses of in spe ct io n. This sh ou ld , h oweve r, be don e by the Pr. Directo r of Au dit afte r e xa m in at i on of t he v o lu m e of w or k in volved an d re cording the rea sons for sp litting th e sta t ion into more t han one via ble u nit. If a t a ve ry b ig station , the work involved is consid ered a s not t oo h ea vy beca use of b ulk/full ra ke bo oking etc.th e n umbe r of da ys ma y be re du c ed s ui t ab ly b y t he Pr. D i re c t or of A ud it at h is / h er dis c r et i on . 4. As rega rd s sup ervisio n a nd origina l au dit b y the Au dit O ffice rs, the Aud it Officers will de vo te 50 % o f th eir prese nce at th e sta t ion s to the orig in al au dit work e ntrust ed to the m a nd the re ma in ing 5 0% to the wo rk o f su pe rvision of th e Aud it insp ectio n pa rt y 's wo rk . (A ut ho rit y : CA G (R)' s co nfident ia l letter no.489-=RAIII/ T/ 1 7 - 8 1 / 8 7 / Vo l. I I d a t e d 3 1 . 5 . 9 0 ) 5. The staff proce edin g on insp ection shou ld ta ke with th em th e fo llowing re turns a nd docu men ts in ad dition to th e releva nt co de s an d man ua ls. i. C o pies o f c h ec k ed b al an c e sh ee t s a nd l at e s t ad v i ce o f A c c oun t s o f i n t e rn a l c h e c k ii. Co pies o f in de nts fo r supp ly of n umbe re d b oo ks Principal Director of Audit, Central Railway 218 iii. Reports of Travelling Inspectors of Accounts iv. O ffice cop ie s of han dling bills v . Collected tickets and TC returns of near by stations. 6. The Reg iste r of Po ints to be se en spe cia lly du ring lo cal insp ection s sh ou ld be t ak e n a nd poin t s me nt i on ed t he re in exa m in ed . Af t e r c o m pl et i on of t h e in s pe c t io n, t hi s r eg is t e r s ho uld be put up to the Branch Officer in dicting t herein the re sults of e xamina t io n o f vario us p oints. In insp ecting st ation s , the staff sh ou ld be arin g mind tha t the ma in ob ject of the ir in spect io ns sh ou ld b e to test check the insp ection wo rk alre ad y d on e b y the Accounts Office. This should no t , h ow e v er , b e t ak e n as t o d is p ense with a g en eral test ch eck a s to t he co rre ctness o f g ene ra l proce dure. 7. Aid o f an y kind sho uld no t be re ce ived from th e stat io n staf f in checking t h e c lo s in g n u m b e rs o f t icke t s f ro m t he t u b e s i n t o t h e T ra in s C a s h Boo k . 8. The de tailed in struction s issu ed b y t h e F A& C AO t o t h e T I As m a y b e taken as g uida nce fo r th e co ndu ct of th ese in spe ctio ns. The it ems to be se en du ring in spect io ns are g ive n An ne xure 31 to th is Ma nua l. Th is list, howe v er, is not exh austive . 9. Pr.Dire ctor of Au dit may arrang e se le ction o f station s so as to in clude eac h y e ar one or t w o s t a t i on s w hi c h s e rve M a rsh al li n g y ar d/ T r an s s hi pm en t She d f o r aud i t of o pe ra t in g a s pe c t s . 10. The in spe c tio n of tra nsshipme nt a nd Rep acking she ds sh ou ld be d one by t he t ra f f i c Aud i t I ns pe c t i on s e c t i on a lo ng w it h t he s t at i on in s pe c t io ns i f the stations selected c o n t a in s u c h s h e d s . 11. Th e ma in po in ts to be seen du rin g th ese in spect io ns a re as u nd er. i. Wh eth er th e p arcel va ns o r wa go ns a re d eta in ed be cau se o f in efficien cy or ina deq ua cy of sup ply of la bo ur by the ha nd ling cont ra ctors. The basic record s re la ting to placement and re mo val of wago ns for such ha nd lin g shou ld also be ch ecked to verify the p r o g re s s re p o rt s a t t a ch e d t o t he bills of such contractors. ii. At tran sshipme nt p oint, it sho uld be see n if t here is un ne ce ssary hau lage o f emp t ie s to or from tha t po int; wh eth er go od s sto ck re fully u t ilised and usag e o f sto ck is n ot impaired b y irration al place me nt a nd lo ad in g o f wago ns' wh ethe r unlo adin g o f wago ns o f one g au ge is d elaye d be cau se of no n-availab ility o f ma tching sto ck of o t he r g au ge and if so, wh at a re reaso ns th erefo r. iii. At t r an s s hi pm en t p oi nt s a nd m ar s halling yards it should be seen if t ra in s r e f o rme d d in t i me ; w he t he r, af t e r f or ma t i on of t h e t ra in , t he re a re d el ay s ( w ai t i ng f o r po w er , e ng in e c re w s , o r g uard o r pa t h) and if s o , t he re as o ns t he r ef o r m ay b e ex a m in ed f ro m t he r ec o rd s of t he s t a t i ons, r un ni ng s h ed s, s e c t io n, c on t ro l le rs / C h ie f cont ro llers. iv. At int erchan ge p oints t he re aso ns fo r de ten t io n or sta bbin g o f goo ds trains sh ort in tercha ng e p oint s ad la te start o g oo ds tra in s s hou l d b e s t u di ed . v . Ra ilwa y Administration also impo s e r es t r i c t io ns o n b oo k in g o f c ons i g nmen t s d ue t od c o ng es t i on in t he s t a t i on s , y a r ds f or s ec t i on s e t c . I f s u c h re s t ric t i o n s we re imp os ed f or bo oki ng s t o t he s t at i on s selecte d for inspe ction, t he rea son s sh ou ld be in vestiga t ed to see Office Manual 219 wh eth er the restrictio n was impo sed d ue to ine fficie ncy o f op eration or o f t h e a ge nc y han dl i ng t he c o nsi gn me nt , de l ay s o n t he p ar t o f consig nee s to u nloa d a nd t ake d elivery of co nsign me nts within a re ason ab le time e t c. Wh at con cre te actio n is ta ken b y th e Railwa ys (so as to re du ce or e limin ate co nge stion ) afte r exp iry o f th e pe riod upt o which th ey are re sp on sib le as a ba iley sh ou ld be studie d. The ade qu acy o f a c tio n t o remo ve t h e re s t ric t i o n q u ic k l y a n d t h e re me dial mea s ures ta ken to a void impo sitio n o f similar re striction s in future should b e r ev i e we d. (CAG (R)' s let t e r n o. 6 47 -5 90 -RAI / 8-11 / 73 dtd 5.3.74 Au/COR/Secret letter date d 26 .3.7 4 POO-1 008 o f 1 6.1 2.7 4 CF also Item XIlLTA MOI & p ara 450 RA M) 535. Review of Cases of Compensation Claims for goods lost, damaged etc. C la im s c a s e s up t o Rs. 2 0 0 / - e a ch a re se t t l e d b y St a t i o n Superintendents/Station Masters of cert ain selected stations. During the lo cal in spectio n of th ese sta t io ns it sho uld be se en tha t a de qu ate a c tion is taken by stat io n Superintendents/Stati on Masters to in vestigate and settle the cla ims an d th at en dorseme nts o f cl aim s p ai d a re g iv e n in t he D e liv er y Boo ks. (POO 8 72 da ted 25 .9.1 96 4) 536 . Exa min ation of comp ete ncy of sa nction for con cession s gran ted b y the Railway Ad ministration . The co mp et e ncy of th e au tho rity con c erne d for the gran t of co nce ssio ns in fre ig ht, fares o r any oth er matte r sh ou ld be ex ami ne d t ho ro ug hl y . Th e i ns pe c t i ng o r R ev i ewi ng O f f ic e r/ Sec t i o n O f f i c er sh ou ld en sure th at a ny ca se of gran t of co nce ssio n which is n ot p rimafacie co vered b y the co de /tariff rules sho uld be no ted a nd go t e xamined promptly with refe re nce to the p ape rs in Hea dq uarte rs Au dit Section/Headquarters Railway Office in o rd e r t o sa t i sf y t h a t in re sp e ct o f the tran saction s which are be in g a cce p t e d in Au d i t , sa n ct io n o f t he co m p e t e n t a u t h o ri t y e x i s t s . ( PO O N O . 1 0 3 7 d a t e d 2 0 . 5 . 1 9 7 7 ) 537 . C o m p ute r i se d R e ser v at i o n Sys t em I n r es p ect o f s t at i on s h av i ng co m pu t erise d re s er v at i o n s y st em , guid el in es f or c he ck s t o b e exe rc i s ed b y Trav e l ling I ns p ec t o rs o f Ac c ou nt s o r t h e p ro c ed ure l ai d d ow n b y t he FA &CAO ( T ra f f i c Bran c h) s h ou ld b e re f er r ed t o . T he g ui de li ne s o r t he proced ure laid down for this pu rp ose ma y be ad op ted in au dit also to the exten t it mee t s th e au dit req uiremen ts o f co nd ucting a n effe ctive check on the compu t erise d rese rva t ion syst em. 5 3 8 . U t i l i t y o f Sta ti s ti c s i n Au d i t.Th e Ma nu al of Sta t ist ica l Instruction s Vol um e I ( Re v i se d- 19 83 e di t i on ) c on t ains i ns t r uc t i on s r eg ar di ng co mpilation o f various p erio dical stat emen ts/re t urns o n Railways' perfo rman ce statistics a nd sub mission o f th e same to Railway Boa rd . The prin cip al he ads u nd er wh ich the Ra ilwa y Statistics re gen erally grou ped are a s und er. i. ii. iii. iv. v. E c ono m ic a nd F in an c ia l St at ist i c s Transportation Statistics C o mme rc i a l S t a t i s t ic s Ro lling Stock a nd Workshop repa ir Statistics Administra tive St atistics 2. Fo r th e purpo se o f review in au dit a nd in spe c tio n (p articu la rly b y Wo rksh op Aud it a nd Traff ic Au dit sectio ns), the f ollo win g sta t emen ts ma y be f oun d u s efu l. Principal Director of Audit, Central Railway 220 Tr a f fi c 1 . S t a t e me n t o f Pa s s e nger Revenue Statistics 2 . S t a t e me n t o f Pa rc e l Re v e n u e St a t ist i c s 3 . S t a t e me n t o f G o o d s Re v e n u e St a t ist i c s(on orig in at in g b as i s) 4. Stateme nt of Commodity St at istics Tr a f fi c : M a r sh al l i n g Yar d s 1 . S t a t e me n t M a rs h a l li n g Ya rd St a t i s t ic s 2 . S t a t e me n t D e t e n t io n t o w ag on s in go od s termin al statio ns 3. Stat emen t Det ent io n to wa go ns at brea k g aug e transh ip men t poin t s 4. State me nt De ten t io n to da mage d wa go ns 3. To en sure th at the statistical retu rn s prep ared at the statio ns, ya rd s, etc. and a lso in the d ivisiona l an d he adq ua rte rs off ice s are comp iled st rictly in accordance with the re le v a n t in s t ru c t i o n s l a id d o wn in t h e ma n u a l o f St a t is t i c a l I n st ru c t io n s , t h e St a t ist i c a l I n sp e c t o rs a re d i re c t e d t o test check the returns with initial rec o rd s a nd g ui de t h e c on c erne d s t af f in the corre ct prep aration of the re turns. 4. F or a b ro ad a nd c om pa ra t i v e r ev i ew/ s tu dy of t he va riou s state men ts and st atistics, the au ditin g sta ff a nd in spe ctin g a ud it parties sh ou ld also keep themse lve s ab re ast o f th e ra ilway a dministra tion 's qu arterly "mon thly su m ma r y o f d o me s t i c s t a t ist i c s v i z . p a rt i-t ra ffic-o perat in g and railwa y b o a rd 's a n n u a l s t a t i s t i c a l st a t e m e n t s i ssu e d f ro m t i me t o t im e . Office Manual 221 C HA P TE R XV I I COMPENSATION CLAI MS AUDIT 5 3 9 . G e n e r a l . Th e sco pe of au dit of pa yme nt ma de b y the railwa y administration towa rd s comp ensa t ion for pa rce ls or go od s lost, d ama ged etc. has be en ou tlin ed in para 17 7-RAM. This is a monthly item of re view wh erein imp ortan t ca se s se le cted by the Pr.Dire c tor o f Aud it at his discre t io n a nd specia l inve stigatio n b ase d on an overall re view of t he list of a dmit t ed cla ims. 540 . Dutie s of the sec tion. Th e Cla ims Au dit Se ct io n fun ctions a s a se pa ra te a nd in de pe nde nt se ction. T he se ction shou ld , th erefo re , mainta in se pa ra t e re gis t ers a nd s ub mi t peri od ic a l re t ur ns lik e ot h er a ud it i ng se ction s . Th e sectio n sho uld also co nd uct a udit a nd review o f ite ms wh ich are c om m on t o al l a ud it i n g s ec t i on s as pe r t h e pro gr am m e of a ud it . T he provisio ns o utlined be low are co nfin ed t o Claims aud it alon e. 2. Th e selection of compensation claims case s fo r au dit sh ou ld b e made fro m t he mo nth ly sta t eme nt o f claims se ttled an d p aid a s brou ght ou t in the list of p ay orde rs issue d by th e ch ie f Co mme rcia l Supe rin t en den t, the Goo ds Sup erin t en de nt Wad i Bu nda r, Divl.Commercial Su pe rint end en ts, ca sh O rd ers issu ed b y Bo mb ay p ort Tru s t. Railway ou t of Ce ntral Railway' s earnin gs , s t a t eme nt s o f a c c ep t ed l ia bi li t i es , t i me b ar re d cla im s a nd s ui t barred claims p aid an d also sta t emen t of claims se ttled b y o t he r Zon al Ra ilw ay s a nd d eb it e d t o t he C e nt r al R ai lw a y i n f ul l o r i n p ar t . Co pies o f these state men ts are rece ive d in th is o ffice th ro ug h th e Acco un ts office(Compensation Claims sect io n) after the lat t er makes selection of ca ses f or post check by that office the third month following the month to wh ic h t h e y re l a t e . F ro m t h e se st a t e m e n t s se le ct io n t o t h e e xt e nt prescrib ed sh ould be ma de ea ch mon t h for review by au dit. Th is re view sh ou ld be co nd ucte d in the fou rth following mo nth afte r th e sett le me nt o f the cla im o r a ccep t an ce of the de bit. 3. The se le ction sh ou ld b e g ot ap prove d by th e Pr.Direct or o f Aud it a s prescrib ed in th e Pro gramme o f Audit. While p ro posin g th e se lection , the mo ne tary va lu e of the claims, differen t kinds of claims like claims of priva t e p artie s, oth er de partmen ts of the railway, claims involving interdep artmen tal an d in ter-railway lia bility, oth er ra ilways deb its etc. and othe r facto rs if a ny, in t he ligh t of past expe rie nce sh ou ld be kep t in view. 4. I n order t ha t s el ec t i on a nd re v ie w a re m o re p r odu c t i v e, ex a mi n at i on o f t he c as es n ee d b e d on e on t h e f o llowi ng ba s is . 1. Commodity wise 2. Cau s e-wise . Usua l ca use s are a s un de r i. en tire lo ss of co nsign me nt ii. pilf erage iii. brea kage iv. le aka ge v. da ma ge by fire v i. da ma ge by wet vii. de la ys an d viii. ot h er c au s es Principal Director of Audit, Central Railway 222 3. Unlike o t he r t ra nsact io ns, co pies o f fina ncial san ctions accorde db y GM and HO D fo r pa yment o f co mpen sation cla ims for goo ds lost or d ama ged are no t en do rse d to Aud it in in dividu al cases in vie w of th e large nu mb er of claims case s in volved and as claims case s are received in audit se pa ra tely. Furthe r, as aud it o f san ction for co mpen satio n claims accorded by GM/HOD cannot be comple ted unle ss the relevant claims file it s e lf i s ob t ai ne d an d r ev i ewe d a p ro c edu r e ha s b ee n e vo l v ed b y wh ic h aud it of sa nction s re la ting to p aymen t of co mp en sation claims is co nd ucted alon gwit h th e au dit o f claims ca ses th emselve s. To e nsu re th at these sa nctio ns a re au dited to the prescribed e x ten t, the se le ctio n of claims ca ses for a udit sh ou ld b e o bta in ed in such a ma nne r tha t claims invo lving payme nts in th e re levan t mo ne y ran ges are du ly co vered to th e prescribed extent. 4. In orde r t o d evote a deq ua te a tten t ion to claims case s of impo rt ance , it has b ee n la id do wn as loca l a rra nge ment that o ut o f the cases se le cted for aud it eve ry month , claims ca ses (oth er th an cou rt case s) be tween Rs.1 25 00 an d Rs.25 , 00 0 sh ou ld b e orig in ally a udite d by Section Officer/AAuO an d ca ses ab ove Rs.25 , 00 0/- sh ould b e o rig in ally au dite d b y t he B ra nc h O f f ic e r. T he re s t of t he c as es ( be lo w R s . 1 5, 0 00 / -) s ho ul d be aud ited b y th e Aud itor. Simila rly, al l court cases in volving claims above Rs . 5 00 0/ - ea c h s ho ul d b e s ub je c t ed t o a u d i t b y t h e B ra n c h O f f i c e r t o t h e ex t en t p re s c ri be d and t h e n um be r of su c h c as es c oun t ed a gain st t he t o t al numb er se le cted for aud it. (POO Nos.8 28 d ate d 1.6 . 63 , 95 8 da ted 1 8.7 .70 ; Au/CO R/CO N-9/I V da ted 25 .2.6 6; Au/CC/VI/1 /11 / 60 da ted 3.2. 71, 6.9. 72, & POO No .10 92 da ted 29. 11. 83) 541 . Rev i ew of Cla i ms cas es . During the re view of cases of claims, the provisio ns con t ain ed in th e In dian ra ilways Act 189 0 a s amen de d from time to time an d instruction s co ntain ed in para s 17 7 RAM a nd 24 14 o f In dian Ra ilway Code fo r Acco unt s Dep artme nt Vo lu me II sho uld be b orne in mind and the rele vant p aid vo uche rs a lso covered in au dit. The fo llo win g po in ts should inter-alia be seen wh ile re viewin g the cases of compensation claims i. th e cla ims fo r comp ensa t ion h as be en mad e by th e prop er person s and preferred within the prescribed time limit; ii. th e claim is su ppo rt ed b y the orig inal d ocume nts as req uired und er the rules; iii. co mp le te en qu iries ha ve b ee n made to e s tab lish Railway' s liab ility fo r lo ss or da ma ge ; iv. Amo un t o f comp ensa t ion pa id h as b ee n dete rmine d prop erly with refe re nce to be ejuck ra te, market ra te an d p arty' s b oo ks whe re ver n e c e s s a ry . v. in the ca se of dama ges, fu ll deta ils of asse ssme nt of da mage s m ad e b y t h e a ut h oris e d o f f i c ia l s, t he qu an t um o f d am ag es e t c . h ave bee n g ive n; v i. To pa y freigh t ch arge s an d wh arfag e/d emurrag e ch arge s whe re ver d ue have be en de duct ed b efo re set t ling the claim; vii. v i i. t he o ri gi n al r ai l w ay re c ei pt ha s b ee n s ur r end ered b y t he p ar t y a nd has b ee n ca nce lled to p reven t do ub le pa yment viii. The claim has bee n sa nction ed by th e co mpete nt aut hority. ix. In case s whe re th is ra ilway has be en he ld lia ble, disciplin ary a c t io n wh erev e r c al l ed f or h as b ee n t ak e n a ga in s t t h e de f au lt i ng staff. Office Manual 223 x. Reme dial measu re s, if n ece ssary und er the circumsta nce s, have b een ta ke n/in tro du ced t o p re vent re curre nce ; x i. In th e ca se o f ot her th an local t ra ffic, the incide nce of cla im a s b etwee n railways ha s be en de termin ed an d a lloca ted as p er Con f eren ce Ru le s; xii. T he p ay m en t of c la i ms is t ra c ed t o t he re le v an t p ay o rd er s t o s ee th at th e a mo un t ha s be en paid to th e rig ht p arty an d t hat the re is a p ro pe r a c qua inta nce f or the amou nt so pa id. 542 . R ev i ew o f C o u r t c as es . Court judgements in re spect of compensation cla im cases amo unt in g to Rs.50 00/ - an d ove r, which are de cid ed a ga in s t the ra ilway a dministra tion shou ld be reviewed mon t hly as p er qu an tum prescrib ed under item CA-XVII (a) of t he Secret MOI. 2. Wh ile reviewing the co urt ca ses, t he following ad dition al po ints sh ou ld be se en ; i. Dela y, if any, in the conduct of litigat io n ii. D e la y , i n t a k in g o t he r s t ep s in t he c a use o f a c as e e . g. f il i ng o f th e affida vit o f d ocume nt prod uction o f e v id en ce, de alin g with refere nces from Railway Advocates etc. iii. In ab ility to prove g oo d ca ses iv. i ns u f f i c ie nt o r in c or re c t a dv i c e g i ve n by l aw y e rs i n c lu di ng t he writ t en sta t eme nt no t bein g drawn u p pro perly co vering a ll po in ts a nd the su it not b eing prop er ly defe nd ed or argu me nts o f o pp osite p arty no t be ing p rope rly reb utte d. v. slackn ess o f the work in th e Claims Branch vi. No n-availab ility or no n-prod uction of re le van t re cords vii. f a u l t s o f t h e R a i lw a y s t a f f viii. viii.Abse nce of Railway witne sses ix. n on -a pp earan c e o f t h e R ai l w ay Ad v oc a t e x. A dj ou rn me nt not bein g g ra nt e d by t he c ourt xi. d elay in no t satisfying court d ecree s re sulting in exe cutives and co nse que nt e x tra e xp en diture 2. A re cord o f a ll co urt ca ses o v er Rs.50 00 / e ach re vie wed ion au dit sh ou ld be mainta ined in th e profo rma g ive n in the Anne xure 32 t o this Ma nual. (POO No.859 dated 19.9.63) 3. Un usu al or e x traord in ary case s o f comp en sa tion claims on a ccoun t o f we ll p la nn ed t he f t s , r ob be ri es f ra uds, ac c i de nt s , f ir e et c . s h ou ld be su itab ly no ted for e x hibition in An nexu re H t o App ro pr i at i on A c c oun t s st a t e me n t o f L o s s e s . C a se s o f d e l ive ry on spurio us railway re ceipts etc sh ou ld b e reviewed ze alou sly a nd commen t s, if an y, offe re d with su gg estion to overcome such ma lp ractices. 543 . Half ye arly a nd Yea r ly re vie w s. In ad dition t o the prescribed mo nth ly a ud it of claims, the fo llowing re views sho uld a lso be un de rta ken . i. A h al f y earl y re v ie w ( Ap ri l a nd O c t ob er ) o f t he r ep or t s of t he claims preve ntion Bran ch se nt to the Railwa y Bo ard. ii. A ha lf yea rly re vie w (July & Ja nua ry) of he avy incid ence o f claims r el at i n g t o parc el s o r g oo ds bo oke d t p ar t i c ular f or w ar di ng s t a t io ns . F o r t he p ur po s e o f t hi s r ev i ew o ne imp or t an t s t at i on f r om whe re bo oking s are he avy is selecte d fo r th e h alf yea rly review and cases are called for from the CCO's off ice for this review. Principal Director of Audit, Central Railway 224 iii. An an nua l review (May) o f cla ims sta t istics pu blished by the Commercial Department with refe re nce to commodity wise and ca usewise a nalysis and cau sewise commod itywise a nd o rig in ating railwa y wise state ment s re ceived fro m oth er ra ilwa ys. (POO Nos.82 8 d ate d 1 . 6.6 3, 8 68 da ted 15 .9.6 4 a nd 104 6d ate d 6 . 12 .77 ) 544 . Cla i ms ca ses to be se en dur i ng inspe ctions. Claims cases which are b ei ng s e t t le d by s t a t i on Su pe rint e nd en t / St a t io n Ma s t ers o f c e rt a in se l ec t e d s t at i on s s ho ul d be s e en d ur in g lo c al i n sp ect i o ns o f t hose st ation s (POO 8 72 dat ed 25.9 . 64 ) 545 . Pay Or de rs pas sed for pay m ent of Com pe nsa tion Claims. As f a r a s t hi s s ec t i on i s c once rn ed , t he c he c k o f pay ord er s v i de i t e m C AI V -2 1B o f prog ra mme of aud it sho uld b e co ndu cted at t he time of a ud iting claims cases. The re le van t pa y orde rs sho uld b e co nn ecte d a t the time of a udit o f cla ims case s t o see that t he a mo un t of claim pa id and received is the same as th at san c tioned by the competent aut hority. No se pa ra te check of pay orde rs is nece ssary if th e numb er o f pa y orde rs so che cked works ou t to the exte nt p re scrib ed in the prog ra mme of aud it for th is item. 2. In ca se whe re the nu mb er of p ay o rd ers so ch ecked do es no t work ou t to th e e x ten t prescrib ed , the nu mb er re qu ired to ma ke up the pe rc e nt a ge p re s c ri be d ne ed o nl y b e c he c k ed un de r t hi s it e m o f prog ra mme of aud it.(POO n os.9 78 of 1 0.9 .72 an d 1 046 da ted 6.1 97 7) Office Manual 225 CHAPTER XVI II SURVEY AND CONSTRUCTION AUDIT 546. Scope of Audit Generally the works of following na ture a re und ert ak e n b y t he C on s t ru c t io n O rg an is a t io n: i. ii. iii. iv. v. vi. Surveys, Co nstructio n o f n ew line s, d ou blin g an d ga uge co nve sid ons L in e ca pa city wo rks like add itio na l lo ops, ru nn in g line s an d side tracking facilities, crossing sta t ions, sick wa go ns de tachin g line s etc. Co nstruction an d Remo de lling of p assen ge r a nd Goo ds ya rd s B ri d g e w o rk s Deposit works O t her specifie d works like Construction of railway workshops, locosheds, re sidentia l quarte rs, s ub -s t a t io ns, s i gn al and tele communication wo rks, electrical wo rks etc.. 547 . Duti es: T he C on s t ru c t i on Aud i t Se c t io ns a r e r es p onsi b le f or a ud it i ng the acco un ts o f co nstruction o f n ew line s su rve y s an d major p ro je c ts und ertake n by th e Ce ntral Ra ilway. The fo llowing Con stru ction Au dit se ction s a re fu nction in g in t his o ffice a nd th e jurisd ictio n of au dit o f t hese of f i c es i s s ho w n a ga in s t ea c h: 1. C on s t ru c t i on Office Aud i t Au dit of acco un ts mainta in ed by FA&CAO(HQrs)Bo mbay Co nstn )BB includ in g wo rks pe rt aining to BB Divn fo r wh ich acco un ts are maintained by SAO(C) Panvel. 2 . C o n s t r u c t i o n Aud i t Office Jhansi Au dit o f acco un ts mainta in ed by th e Accou nts off icer (Constn) Jhansi 3. C on s t ru c t i on Aud i t Au dit o f acco un ts mainta in ed by th e Accou nts Office Jabalpur Officer (Const n)Jabalpur 4 . C o n s t r u c t i o n Aud i t Office Nag pu r Au d i t o f a cco u n t s ma i n t a in e d b y t h e Sr. Acco u n t s O f f i ce r(Constn) Na gp ur 5 . C o n s t r u c t i o n Aud i t office Pune(wef2.6.79) Au d i t o f a cco u n t s ma i n t a in e d b y t h e Sr. Acco u n t s Officer (Const n) Pune 6 . C o n s t r u c t i o n Aud i t Office Bhusaval (wef 1.1. 85 POO n o.1 09 8 dat ed 3 0.1 1.8 4) Au d i t o f a cco u n t s ma i n t a in e d b y t h e Sr. Acco u n t s off ice r(Con stn) Bh usava l 548 . Pe riodicity of Audi t. Keep ing in vie w th e p ro v isio ns of para 124 RAM f ourt h f o llowi ng m on t h ha s b een p re s c ri be d as t he p er io di c i t y o f a udit in these offices. I n MTP (Rlys) Mumbai the third following month is taken for aud it. The exten t of aud it of va riou s items is t he sa me a s prescrib ed for ope n lin e orga nisatio n which is g ive n in the p ro gramme of Aud it in the CA G ' s Se c r et M e mo ra nd um r eg ar di ng ex t e nt of a ud it (Ra il w ay s ) a nd ot h er orders issue d from time to t ime. Instruction s con t aine d in chap ters on Es t ab l is h me nt an d P ro v id en t F un d Aud it Ex p en di t ure Aud it s t ore s Au dit Boo ks an d Bud ge t Au dit a pp ly in th e ca se of Co nstruction Au dit Section also. Ho we ver, th e fo llowing provisions shou ld be bo rn e in min d. Principal Director of Audit, Central Railway 226 549 . Clas sifica tion and re-cl ass ifica tion of soils . D ur i ng in s pe c t io n o f Eng in ee ri ng of f ic e , t he Se c t io n O f f ic e r/ A s s t . Au di t O f f i c e r a nd Branc h Officer in charge should spec i f i ca l ly wa t ch f o r ca se s wh e re re cla ssificat io ns ha ve b een orde re d e ith er by th e office rs who origina lly gave classificat ion or by higher of ficers . Such cases with all the facts and fig ures th at co uld b e co llecte d fo r f urthe r e xaminatio n sho uld b e rep orted t o t h e Pr. D i re c t o r o f Aud it . So i l cl assification registers maintain ed in the Eng in ee ring Offices sh ou ld be reviewed by th e in sp ectin g of fice rs f or this purpose (ADAI (Rlys)'s letter no.31 09 -R AI / A5- 19 60 da t ed 23 . 11 . 60 ) 5 5 0 . A u d i t of C o n tr a c to r s ' Bi l l s . I n a d d it io n t o t h e ch e cks wh i ch a re normally requ ire d to b e exercised in th e au dit o f th e Co ntracto rs bills, the followin g f urther checks should be carr ie d out on the bills for well sinking and ea rt hwork. i. Bills for well sinking .In addition to t h e c h e ck o f q u a n t i t ie s i n t h e b il l w it h the en tries in th e Me asure me nt Boo ks, it will be use f ul to ch eck me as u re me nt k nown as T ec hn ic a l / Sit e re gister maintained for such works. It shou ld be seen tha t the re cording of th e be d leve l (or the grou ndwa t er le vel in th e case o f grou nd wells) h as be en d one y a re spon sib le official and sig ne d by th e EN in ch arge an d the con t ra ctor in to ke n o f his accep t an ce. Th e en tries d in th e mea s uremen t Boo ks co uld also be us ef u l ly c he c k ed w i t h r ef e re nc e t o t he co m pl et i on drawi ng a v ai l able d in t he D i v l . O f f i c e a nd wh i ch w ou ld s ho w t he le v el re ach ed by t h e c ut t in g e dge and the be d leve l. ii. Bills for Ea rt h work. (a ) In the case of works in volving larg e quantities of earth work, Key Plan a nd th e Pro ject She ets if a ny shou ld be con s ulted in orde r to ha ve a ge ne ra l id ea of th e work e ntruste d to the con t ra ctors. b. Earth wo rk will ordina rily be pa id fo r b ase d o n me asureme nts b y Cro ss Sectio n of fo rma t io n ta ken bef ore th e commen c emen t an d a fter the completion of t he work. Contractors will have to sign ground cross section (b ot h i ni t i al l y a nd f i na l ly ) in t o k en o f t he a c c ept anc e . I t s h ould b e s ee n in aud it tha t this req uire ment has bee n co mplie d with. c. I n t he c as e of ea rt h w or k b as ed d on Cro s s s ec t i on m ea s uremen t o f t he ban k o r th e cutting ,the e ntries din th e me asu re ment b ooks wou ld show the area o f th e Cro ss se ction o n differen t suitab le ch an ge s. The le ngt h of the ban k or cutting bet we en two con secutive cross se ctio n a nd th e q ua ntity for each len gth of t he ban k/cutt in g. In a dd itio n to che cking the bills with the me asu re me nt bo oks which has ne cessa rily to b e do ne , th e en trie s in the me as u re me nt bo ok s t h ems el v es s ho ul d b e c he c ke d w it h r ef e re nc e t o t he le vels bo oks, t he ban ks, cu ttin g re co rded in th e le vel bo ok b y th e AEN. Th e a re a o f t he C ro s s s ec t i on s re c or de d i n t h e l ev e l boo k s ho ul d a l so be test checked. d. Where th e ba nk is ma de u p p artly from cutting spills and partly from the borrow pits, the ch aina ges of th e ba nk to be f orme d in ea ch type is prede termin ed by th e en gine ers re prese nta tive . In su ch ca ses it shou ld be se en th at the cut spo ils h ave be en use d to the be st a dva nta ge of the ra ilway . e. In th e ca se of b ank fo rme d from cuttin g spo ils lea d is recko ne d from the ce ntre of gravity o f th e cu tting ma ss to th e ce ntre of g ra vity of the enb an kme nt ma ss by using a ma ss diag ra m. In re spe c t of ban k fo rmed bor r ow p it s, t he l ea d is de termin ed with reference to the borrow pit plans. Office Manual 227 Th e e ntries for lea d sho wn in th e Mea suremen t Bo oks sho uld b e ch ecked with re ference to these record s. (CAG ' s lette r n o.1 803 -RI/ 7-15/ 61 d ated 1.6 . 62 a nd item 3(i) o f th e minute s of mee t ing of th e GO ' s me eting he ld d on 19.7 . 63 8AX/ROG/ 512 ). 551. Check of On-account Bills. On a ccoun t bills shou ld b e au dited in de pen de ntly to th e e x ten t o f 2 5% pe r mo nth (Au t ho rity: POO 11 00 da ted 6.285 and CAG's lett er no.165-RAI I / 2 0 -4 / 8 4 d a t e d 2 0 . 4 . 8 5 ). 552. Employment of Project Casual Labour. La bo ur e ng ag ed o n p ro je c t s , irre spe c tive of d uration , exce pt th ose tra nsfe rre d from oth er te mp orary or perman en t emplo yme nts a re termed as Ca sua l Lab ou r. Following aspe cts sh ou ld be kep t in view in t he a ud it of e x pe nditu re on casu al la bo ur. i. T h e projec t s ho ul d be t a k en a s o ne i nv o l v in g c on s t ru c t io n of n ew l in es , m aj or b ri dg es , w id en in g of t un ne ls et c . O nl y t h e c on c erned GM/HOD in consultation with FA&CAO is competent to decide whe t he r a pa rt icu la r wo rk is a project (pa ra 25 01 IREM) ii. Proje c t la bou rers a re ge nera lly go verned by Min imu m Wa ges Act and they are to be remunerated at rates fixe d under the said Ac t. iii. Casu al lab ou re rs employe d o n projects wh o h ave pu t in 180 da ys c on t i nu ous s e rv i c e o n t he s am e t y p e of w or k r e t o b e t r ea t ed a s mon t hly rate d of the minimu m scale of pa y p lu s d ea rn ess allo wance th ereon . iv . T he c o nd it i on s o f s e rvi c e of p ro je c t c a s ua l la bo ur h av e b een l ib er al i s ed w i t h ef f ec t f ro m 1 . 1. 8 7. T he y h av e b ee n allo w ed t o at t ai n t e m po ra ry s t a t us a f t er 3 60 da y s of c o nt i nu ou s s er v ice . O n acq uirin g tempo ra ry statu s ca sua l la bo urers o n p ro jects are ent itled t o ge t b en ef i t s a s a dm i ss i b le t o t e mp orary e mp l oy ee s . ( R ai l wa y Bo ard's let t er no.E (NG) II/84/CL/41F dated 11.9.86) 553. Inspection of Constr ucti on Offi ces. General instructions continued in Ch ap ter XX on I nspe ctions sh ould b e bo rn e in min d d urin g the lo cal in spect io n o f Co nstruct io n Off ice s also. Th e insp ection of Co nstruction O f f i c es i s c on du c t ed an nua l ly a nd t he pe r ce nt a ge of Aud i t O f f i c er s ' su pe rv i s i on i s as a pp ro v ed by t he Pr. D i re c t or o f Au dit d ep end i ng on t he availability of the officers. (c/ f secret PO O n o . 1 0 9 6 o f 2 0 . 6 . 8 4 ) . T h e t i me allo wed the compo s itio n o f th e in sp ecti o n p arty in resp ect of Co nstruction Offices is given in Annexur e 3 8 t o t h i s M a n u a l. 5 5 4 . I n s p e c ti o n o f S u b-o ffi c e s . The insp ection o f th e subo ffices sh ou ld be ca rried o ut to the exten t prescribed in pa ra 68 o f secret Me mo ra nd um (se e a lso POO s 545 da ted 24 .7.5 4 a nd 76 8 d ate d 6 . 6.6 1) 555 . I te m s to be se en during Inspe ctions . Th e imp ortan t ite ms to be se en du rin g loca l inspe ctions of va rio us o ffice s a re given in the An nexu re 34 to th is Ma nu al which sh ou ld be refe rred to in the case of Co nstruction o f f i c e s a ls o . 556 . Rev i ew of Ma jor Work s. I ns t r uc t i on s giv en i n p ar a 5 94 t he re in sh ou ld be bo rn e in mind . The re vie w of majo r wo rks a s far as Co nstruction projects/wo rks are co ncerne d sh ould b e con du c ted alon gwith the in s p e c t io n o f t h e re s p e c tive XE NS o f f ice s a s f a r a s p o ssib l e . 2. The time allowe d fo r th e review of major works is five (5) days. Ho wever, in t he case o f th ird fo urth an d fifth or su bse que nt reviews, when Principal Director of Audit, Central Railway 228 the o utlay involved in th e prece ding y ear is no t consid erable , th e sta nda rd time of five days maybe reduced to three or four days as ju stifie d.(Au / CO R/15 /Insp n Prog ./7 7-78/ 203 0 d ate d 3 0.3 .77 ) 557 . Works Regis ters. As ma terials p urcha sed for Co nstruction Pro je c ts do n ot pass t hroug h Stores Susp ense Acco un t bu t are d ire ctly ch arge d to the works, th e re spon sib ility fo r en suring re ceipt of ma terials a gain s t a ll payme nts an d vice versa re sts with th e Exe cutive En gine ers. I t sh ou ld , there f ore, be se en du rin g the review of works reg iste rs tha t the co lu mn s Adva nce Paymen t fo r su pply of ma terials and Va lu e o f materials received in ad van c e of payme nt to Co ntracto r are prop erly mainta in ed in the Works Re gisters an d th e b alan ces un de r th ese columns re reg ularly re con ciled wit h t h o s e i n t h e S u b s id ia ry R e g is ters maint ained for the re spective Sus p e n s e h e a d s . ( AD AI ( R )' s E n d t t . no.1803-RAI / 7-15D/61 dated 1.6.62) Office Manual 229 CHAPTER XIX COSTING CELL 558 . GENERAL In pursuance of the recommendations contained in Para 3.7.3 of the Report on the committee on Railway Audit Norms, a Costing Cell has been reconstituted in this office as a new independent unit in the headquarters (in addition to the existing HQrs sections). This cell would comprise of one Sr. Audit Officer assisted by one SO/AAuO and one Ar./Sr.Ar. not drawn from the existing strength of Railway Audit offices. As per the above recommendations, officers/officials qualified in Costing are to be drafted from within the office for deployment in the Costing Cell. Training for this purpose also needs to be arranged. 2. Audit Jurisdiction On Indian Railways, the following Costing Cells are functioning at the Zonal level. a) Traffic Costing Cell for preparation of cost analysis and Profitability in respect of (i) selected passenger (Mail/Express/Ordinary) trains and (ii) selected commodities moved by goods trains (with reference to the concessions/special rates offered). b) Efficiency Cell for compilation of Action Plan and evaluation of efficiency and performance at Divisional level and at Zonal Headquarters level and for evaluation of works, etc for better co-ordination between the departments concerned. c) Work Study Cell for reviewing deployment of staff in various cadres vis-à-vis the requirements from Zonal Headquarters level to functional unit level in the field. The Costing Cell has been established with a view to undertake critical review of the various reports generated in the above mentioned Railway Cells. The scope of work of the Costing cell would also entail attempting reviews on certain other areas of railway working such as review and evaluation of expenditure incurred on operation and maintenance of track, track maintenance machines, rolling stock (locos, coaches and wagons) at various locations (in the workshops and on sick lines etc.) and also for review and evaluation of carrying cost of inventory at various levels (depot-level to floor-level/imprest-level), as the system for review and evaluation of the above operational areas are presently not existing in the Railways. 3. Duties of the Costing Cell The duties of this cell are enumerated below: Critical review of reports issued and studies undertaken as well as Examination of files/documents maintained by the aforesaid cells of Central Railway. As per P.D(Rlys)’s D.O. ltr.No.236/Rly/Co-ord/RR2/2005/Pt-I dated 10.08.2006, this office has been nominated as a centre of specialisation in the area of costing and stores. A Status report regarding the activities carried out in the area of costing during each quarter is required to be sent to HQrs office. 4. (i) Items to be checked All reports generated in the aforesaid cells in Central Railway are to be checked including those materials/analytical statements which constitute the basic data for the annual statistical statements published by the Railway Board. The periodical management statements furnished by these cells to the Central Rly. HQrs and to the Railway Board are also to be checked. (ii) Scope and extent of check The scope of check of the above items comprises the review of the various elements of cost reckoned with for arriving at the compiled data and the check of the accuracy of such elements with reference to the basic source data furnished by the designated units. It should also be checked that all relevant and extant rules, procedures and policies governing the subject on hand issued by the Competent Authorities are adequately considered/applied during the generation of the aforesaid reports, studies and statements. The extent of check applied in the above cases is in the nature of a general review as and when the respective statements are issued by the Railway Administration. Principal Director of Audit, Central Railway 230 CHAPTER XX I NSP ECTI ONS 5 5 9 . G e ne r a l : T he in s t r uc t i on s co nt a i ned in pa ra s 76 7-77 3 of MSO (Tech ni c al) V ol um e I , p ar as 57 -6 5 & 67-6 9 of MO I a nd C ha pt e r XX I o f Ra ilway Audit Man ua l sho uld b e bo rn e in min d by th e Insp ecting Officers and sta ff while co ndu cting the local insp ection s. Th e g en eral rules and re gula t io ns a pp lie d in the cen t ra l Au dit/Test Aud it at He ad qu arters will apply mu tatis mutandis t o inspections also. 560. Objectives of Inspections. The primary obje ct of local inspections is to ap ply test a udit to su ch a cco un ts, vou chers an d ot her initia l reco rd s wh ich are no t aud it ed in Cen t ra l Aud it o r can no t be co mp letely au dited ex c ep t a t a plac e of t he ir o ri g in . I t s ho ul d be s ee n t h at t he i ni t i al docu ment s from which th e bills a nd a ccoun ts are rend ered by the lo cal officers or o n which th ey are b ased are prop erly ma in taine d an d th at the fin an c ia l ru le s a nd orde rs on the su bject a re b eing implemen ted fa ith f ully. I t i s a ls o n ec e ss a ry t o t es t t h e d eg re e of c ar e exerc i s ed by t he dep artmen tal au tho rities resp onsib le for kee ping the acco unts o ver the accuracy of the original re cords. 561. Programme of Inspections. I n s t ru c t io ns g iv e n i n p ar a 4 25 o f R ai l wa y Aud it Man ual shou ld b e bo rn e in mind while p re pa rin g t he prog ra mme o f Inspections for each year. The inspection section should maintain a co mpreh ensive list o f a ll execu t ive offices, sub -o ffices, stores de po ts, sc h o o ls , h o s p it a l s e t c . c o min g u n d e r t h eir a ud it c o nt r ol , u pd at i ng it e v ery ye ar b efo re prep aring the an nu al insp ection prog ra mme . Afte r cond ucting in spect io ns of a p articular o ffice/su b-office a men t io n sho uld be mad e in this list, ind ica tin g th e mon t h a nd ye ar in which a p articular office is in spect ed, so th at it ma y serve a s a re ad y in de x. Th e p ro gramme o f in spect io n fo r the en suring yea r shou ld b e p repa re d with refe re nce to this list, aft er consu lt in g th e previou s yea r' s insp ection progra mme a s well a s t he p ro gr am m e of t he a c c ou nts office. It should be e ns u re d t ha t t he s a me su b-off ice is n ot visited by th e insp ection pa rty fre que ntly lea vin g so me offices un inspe c ted for a lo ng t ime. Th e an nu al in spect io n prog ra mme sh ou ld be s u bmi t t ed i n t he p re s c ri be d p ro f orm a (A nn exu re 3 3) t o t h e C oordina tio n section b y e nd o f Dece mber every year for o bta in in g the app ro val of th e Pr.Dire ctor of Au dit. An a pp ro ved co py o f t he insp ection progra mme is to b e sen t to Ad dition al De pu ty Co mptroller & Au ditor Gen eral of In dia (Railwa ys) b y the en d of Fe brua ry e ach ye ar. An y cha nge in the insp ection prog ra mme or th e p erio dicity of in spe c tio n sh ou ld be don e on ly wit h the p rior app ro val of the Pr.Director of Au dit t hroug h Coordina tio n se ction . No inspe c tion sho uld b e und ertake n with ou t prior app ro val of the Pr.Directo r of Audit. 5 6 2 . D i s tr i b u t i o n o f I n s p e c ti o n W o r k . The d istribu tion of inspe c tion work amon g th e va rio us d ivisions an d se ctio ns is d on e o n the ge nera l p rin cip le of I n t er na l C h ec k a rr an ge me nt s . Sr. no . Name of th e Exe c utive O f f i c e / De p t t . Intern al check au tho rity Division/ section re spon sib le fo r co nd ucting in spect io ns a nd pursua nce of I n s pe ct io n R ep or t s 1 2 3 4 1. All op en line Head s of Departments Offices viz.General Man ag er(includ ing CPRO,Vigi lance Orga nisation Wo rk study(Efficiency cell)CPLO,Statistical and Comp ilatio n)CG E,CSTE, CCO CME(Personnel po rtio n CEE(person ne l po rtio n) FA&CA O Esta blish ment Expe nd it ure / Inspection Hq rs. section (I HQ) Divl.Accounts Officers Co nce rn ed Sr/ D iv l Au dit O f f i c e r s (I n s p n ) FA&CA O (Co nst ) Co nstruction HQrs.(CHQ) 2. All Divisional Offices 3. Chief Administrative O f f i c e r (Co n s t n ) C E ( C ), CSTE(C) CEE(C) etc. 4. All Divl. Con stn Exe c utive Se nior o f f ic e s . Accounts Officers(Const n) 5. CAO-Metrop olitan Transp ort Proje c t 6. Oth er projects su ch as Railway Elect rification 7. 8. FA&CA O MTP F A&CA O (RE ) Konkan Railway (KRCL) co ncened Sr/Audit Officer(Constn) Sr/ Au d i t O f f i ce r (MT P) Sr/ Au d i t O f f i c e r ( RE ) Sr/ Audit Officer (KRCL) Exe c utive O ffices of Stores,Workshops/ PoH Sr/ Au d i t O f f i c e r s St o r e s / W/ sh op s ) (Name s o f t he E x ec u t ive of f i c es i nd ic a t ed a bo v e are n ot exh au s t iv e . Add it io ns/a lte ra tion s wh ereve r nece ssary sho uld be ma de from time through issue of correction slip to Office ma nual) 563. Peri odicity of Inspections: T h e Pr. D irect o rs o f a ud it h av e b een empo we re d to fix the f re que ncy an d du ra tion o f lo cal insp ection s co nside rin g the ne eds o f ea ch case . Th e ADAI (Ra ilways) ha s la id do wn t hat t h e e mp ha s is s ho ul d b e on mo re in t en s ive aud i t o f of f i c e s v i s i t ed t han to do local insp ection s on e x ten s ive scale i.e. impo rt ant offices which have no p ower of ma king major de cision s h aving fin an cia l implica t ions may be in spect ed a t compa ratively lo ng in terv als but off ices in curring consid erable expe nd itu re as well as major de cision ma king o ffices sho uld b e au dited mo re in t en s ive ly d ur in g l oc al i ns pe c t i ons. A cc o rd i ngly , pe r io di c it y o f in spect io n o f various o ffices h as b een fixed as u nde r. Principal Director of Audit, Central Railway 232 Sr. no. N a me o f the o ffi c e Pe r i o d i c i ty 1. Ge ne ra l ma na ger includ in g Ch ie f Pu blic o n ce i n t wo ye a rs R el a t io ns O f f i c er s , Vig il an c e O rg an is a t i on, Work study(efficiency cell),Chief Planning Off ice r,Mu mb ai(CPLO)(pe rso nne l & no np er s onn el) St a t is t i c a l a nd C om pi l at i on 2. C hi e f E ng in ee r( O p enl i ne ) i nc l ud es C hi ef Bridg e Engin eer, Ch ie f Traction Engin eer,Chief Gen eral En gine er an d Chief P la nn in g & D e s ig n En gine er, C h ie f M e ch an ica l Engin eer,Chief Ope ra t ing Ma na ge r inclu ding C hi e f T ra c t io n p la nn in g Su pd t . C hief P as s e ng er Transport Su pdtt.Chief Traff ic Safet y Supdtt.and Chief Signal & Te lecommunica tion Engin eer include s Chief Commun ication s Engineer, Chief Commercia l Su ptt. in cludes Marketing and Sales Supdtt.and Rates, Senior Commercial Of ficer catering Chief Claims O f f ic e r; C on t ro lle r of St o re s i n c lu de s C hi ef mate ria ls Ma nag er,Printing press,Byculla , 3. Chief Security Co mmissioner o n ce i n t wo ye a rs (RPF)/ I G (Person ne l & Non -Personn el ) 4. Chief Cashier(Pe rso nne l & Non - Person ne l) on ce in t wo y ea rs 5. C hi e f Eng in ee rs S ig na l& Te l ec om m un i ca t i on Engin eer, Chief Electrica l En gine er, Chief Engin eer,(Su rve y) an d Con struction D i v l. O f f i c e s Ye arly 6. Open Line Divl.Offices including Asstt.Securit y C om m an de nt s a nd St o re s D epo t s o n ce i n t wo ye a rs 7. Divl.Cash Of fices(Surprise check) Yearly 8. C h i e f C a s h i e rs ' C a s h O f f ice (Surpris e check) Yearly 9. Railway Sch oo ls on ce in f our ye ars 10. Railway h ote ls on ce in t wo yea rs 11. Railway' s Mob ile Dinin g Car Units Ye arly 12. Railway Training Sch ools on ce in 3 yea rs 13. Vario us sho ps of the Wo rksh ops(major) o n ce i n 4 ye a rs includin g la borat orie s Min or sho ps 14. Subsidise d h ostels 15. Check of Passes issued by non-ra ilway offices o n ce i n 3 ye a rs passes issued by the Of f ic e o f P& T d e p t t . n e e d n ot b e che cked as pe r DRA' slett er no. R-10 38/45 dated 26.4.60 16 Ceme nt De pots(alo ngw i t h AEN' s o f f ic e ) 17. Cat erin g Office Manual un its (Static Non -p erson nel matters yearly & Person ne l m a t t e rs O n c e in two ye ars on ce in t wo y ea rs unit s 233 including on ce in 4 y ea rs Cat g. s t o re s De p o t s) 18. In stit ution s re ceivin g G ra nts-in-aid i . r ec ur r in g g ra nt s e x c ee di ng R s . 1 l ak h a y e ar ii. no n-re currin g gra nts e xce ed in g Rs.5 lakhs(cf para 69-MOI) i . o n c e i n 3 y e a rs i i. 2 5% each y ea r (A u t h o r it y : P O O N o . 8 4 7 d a t e d 6 .2.6 4) Au /CO R/14 / 12 dat ed 1 7.3 .71 Au/I HQ /19 / 58 dat ed 13. 1.82 Au /COR/15 / orde rs/3 75 8 d ate d 3 0.5 .78 Th e de tailed instruction s reg arding co ndu cting of insp ection s a s laid do wn in t he S ec r et P O O N os . 1 09 6 da t ed 20 t h J u ne 1 98 4a nd 1 10 0 d at e d 6. 2 . 85 sh ou ld be bo rn e in min d. Th e main d utie s to be p erformed in conn ection with the co nd uct of lo cal in s pec t io ns a re as u nd er : i. Pre parat io n of ann ua l in spe ctio n prog ra mme o f g en eral o ffice s (other than Stores, Workshop, stations etc.) ii. Collection of vouchers , after obtaining necessary selections and t h e i r u l t im a t e r e t u rn s a f t er t h e in sp e ct io n i s o ve r. iii. Inspect ion of all Administra tive offices, District and Divisional offices and check of passes,priv ilege ticket orders issued by nonrailwa y offices(pa sses, privileg e ticket orde rs issue d by Accoun ts Off ice rs sho uld be ch ecke d by the co rresp ond ing a udit section s a nnu ally) iv. Maint ena nce o f an u p-to-da te a nd co mp lete list of office s a nd su bo ffice s to be in spect ed. v. issue of inspection advices to officers concerned v i. Det erminin g th e p ersonn el o f ea ch p arty un der vii. A u d i t O f f ic e rs o r d e r s . viii. Selection o f items for o rigin al Audit by Aud it Of fice r., AAuO/ SO(a) a nd ma rking of ite ms for au dit ors b y AAu O/ SO (A ). ix. c o mp aris o n a nd i ss u e o f I n s pect i o n R ep or t s x. Revie w o f I nspe ction Rep orts an d dispo sal of a ll re plies received on part I and Part II inspection report s. x i. S ubmi s s io n o f M on t hly Prog re s s R ep or t an d a rr ea r l i s t s . 564. Procedure for ta king up inspecti ons ( Pa ra s 4 27 -4 31- R AM ) . T he He ad of t he O f f i c e p ro po s ed t o b e in s pe ct ed s hou l d b e g iv e n a bo ut a fortnigh t' s not ice t hrou gh th e FA&CAO. The da te intimate d sh ould a s far as po ssib le be ad here d to. No such in tima tion is req uire d in reg ard to su r p r is e in s p e c t io n . 2. Befo re taking up the inspe ction of Divl. Pay Clerks, th e insp ecting AAu O / SO s h ou ld p ro v id e him s elf wit h a l e t t er o f in t ro du c t i on o n each oc c as i on t he c hec k i s t o b e e xe r cis e d. T he le t t er s ho ul d b e a dd re s se d t o t he D i vl. P ay c le rk c on c erned a nd b ea r t he c o unt er s i gn at u re o f Divl.Acco unts officer or Chie f Cash ie r o ver th e sign atu re of t he Divl.Au dit Officer to e nsu re re cog nition by th e a ddresse e. 3. Befo re the insp ection pa rt y le ave s for insp ection , th e mo nth the ac c ou nt s o f w hi c h s hou l d b e t e s t au dit ed s ho ul d b e g ot s el ec t e d b y t he branc h o f f i c er . T h e in s pe ct io n se c t i on sho uld collect all orig inal vouch ers pertain in g to the off ice to be inspected, like pay bills, TA bills, contra ctors bills e t c . f or t h e m on t h s el ec t e d. I n r es p ec t o f v ou c he rs w h ic h c an no t be taken from headquarters , the voucher files in the Executive offices should be re ferre d to . Th e se le ctio n o f items fo r orig in al au dit b y AAuO/ SO (A) Principal Director of Audit, Central Railway 234 and A uO d ur in g in s pe c t io ns s ho ul d be d on e by Au dit of f i c er in c h arge o f in spect io n. The resu lts o f a ud it d one by Au dit officer in charge in Orig in al Aud it du rin g in spectio n sh ou ld b e submitted to th e Pr.Directo r of Au dit wh ile t h a t o f A Au O / SO (A ) t o t h e Au O i n c h a r g e . (POO 1 023 da ted 23 .12 . 75 ) 4. Th e it e m s t o b e s e en d ur in g lo c al i ns p ec t i on s a re g iv e n in A nn ex ur e 34 to this manual. The AA uO/SO (A ) in ch arge o f t he insp ection sh ould mark in t h e lis t of it e ms o f wo rk t o be d one d uring insp ection , th e various items of work to b e do ne by Au ditors acco rd in g to the p erson al exp erie nce and apt i t u de o f t he in div i dua l c o nce rn ed . I n t he ma t t er of d i s t ribu t i on o f i t ems , it sh ou ld be bo rn e in mind that th e mo re imp ortan t items are don e b y the Sup erviso ry Of fice r a nd th e AAuo. The su pe rvisory office rs are a dvised to take the re spo nsibility o f see ing mo re importa nt ite ms b y th emselves so t hat no imp or t an t ir r eg ul ar it i e s es c ap e a ud it s c ru t in y . 5. I t is the duty of the AA uO/SO(A) to ensure that all the it ems of work have be en du ly co mp lete d b y the conce rn ed Au ditors an d t hat the ir da ted in itia ls are ob tain ed in ink ag ainst ea ch it em o f the o rigin al list in to ken o f their ha vin g comple ted t he work. A reco rd shou ld be kept o f all vouch ers se rvice shee ts, lea v e acco un ts etc. a ud ite d to en ab le fixin g resp on sib ility a t a s u b s e q u e n t d a t e f o r a n y f a ilu re of checks during in spect ion , proforma in dicating in de tail th e allo cation o f wo rk amon g the va riou s me mb ers o f the in spect io n p arty sho uld b e inva riab ly p laced on record in the re levan t Inspection Re port file. 6. It sh ould be clea rly und erstoo d tha t th e items g ive n in Ann exure 34 a re by n o me an s ex h au s t iv e a nd t he e xt ent of c he c k i n e ac h o f f ic e i s dep en de nt on th e na ture an d volume o f work in volved in e ach o ffice and every ca re sho uld be take n to se e th at no imp ortan t a s pect of the activity in an office is o ver lo oke d.(PO O 60 9 d ate d 2 . 5.5 6) 7. T he in s pect io n s ec t i o n s ho ul d m ai nt a i n t he i r c od e b ook s , m an ua ls e t c . up t o da te. Th eir equ ipmen t sho uld a lso in clu de manu als, p ublication s, pamp le t s etc, issue d by Ra ilway Dep artmen t s. In a ddition gu ard file s co nta ining impo rt ant orders, circu la rs e t c. du ly in dexe d fo r re ady ref erence sh ou ld be mainta ined . While at HQrs.the insp ection sta ff sho uld asce rta in f ro m t h e a u d i t i n g s e c t i o n s la t e st o rders, decisions if any, on topical in terest. Th e auditing sectio ns shoul d also advice the I n s p e c t io n S e c t i o n about such orders, decisions whic h will b e u s e f u l f o r v e rif i c a t i o n d u rin g lo cal inspections. 565. Inte nsified inspection. I n o rd er t o i mp ro v e t h e qu al i t y o f au dit , t he CA G of I nd ia h as s an c t io ne d t w o po s t s o f S ec t i on O f f i c er s ( Au di t ) w ho sh ou ld be de ploye d to streng the n t he p ar t i es un de rt a k in g i mp or t an t in spect io n. Th e HQrs, o f the se se ct io n o fficers (A) is Mumb ai. The y will jo in the insp ection pa rties a t Mu mb ai an d oth er divisio ns an d work und er t he s up er v is i on o f t he D i v l. A ud it of f i c e rs c o nce rn ed . T h e i n s pect i o n p ar t y in such cases should be two sect io n O ffice rs an d one Aud ito r; the Divl.Au dit Off ice r shou ld se nd on ly Se ctio n Officer a nd on e Aud ito r from Section/Division. 2. Th e progra mme of in spe ctio n for th ese Se ctio n Officers sh ould be fin alised b y the CO R se ctio n. In orde r to ena ble th at se ctio n to draw up the progra mme of insp ection s, the Bran ch O ffice rs sh ou ld sen d e ach mo nth a r et u rn i n t h e f o rm p re s c ri be d vid e A nne xure 3 5 to th is Ma nu al, so as to re ach CO R section by 10t h e g th e re turn reg arding th e insp ectio n to be Office Manual 235 taken up in Jun e shou ld re ach COR section b y th e 10 th of May etc. The Branch O ffice r sho uld en sure person ally th at the d ue da tes are strictly adh ered to. 3 Th e scop e of work o f Inte nsified In spect io n Se ctio n Officers is given belo w. A. The Sect io n Off ice rs (A) sho uld ma ke a very exha ustive stud y and an alysis o f th e insp ection re po rts of p re ced in g ye ars an d make ou t a list of the followin g t hree types of irre gula rities; 1. Mino r irre gu la rities co mmo n in a ll d ivision s 2. Ma jo r irre gu la rities co mmo n in a ll d ivision s 3. Particular irre gu la rities-pa rti culars only to some divisions etc. B. Le aka ge o f re ven ue ta king p la ce a s a re sult of lack o f coordina tion (cf move men t of co al) la ck of fo re sight in plan ning diese lisa t io nca re le ssne ss(n on-inclusion o f t he p ena lt y clau se in c o n t ra c t s ) e t c . s h o u ld b e s p e ci f i c a l l y e x a mi n e d . C. A ge ne ra l ov e rh au l s t ud y o f t he G e ne ra l m an ag er s r ep or t of t he pa st yea rs, th e Ap prop ria t io n Acco un ts, au dit Rep orts, the re ac t i o ns o f t h e CA G st age b y s t a ge t o t he f i n al is a t i on of D ra f t Au dit Pa ra grap hs sh ould be ma de . D. C as e s, i f an y , n ot i c ed d ur in g in s pect io ns w h ich r eq ui re i nv es t i g at i on s a t H Q r s . s ho ul d be e x ami ne d by t he m on t he ir re turn to HQrs. E. The y sh ould also u nde rt ake an y sp ecial wo rk/in vestiga tio n tha t m a y b e e n t r u s t e d t o t h e m b y t h e Dy.Direct or/Pr.Director of Audit. F. The s e Section O fficers shu ld ma in tain Original Au dit Re gisters to indicat e t he work d on e b y th em and su bmit th ese reg iste rs to the Pr.Dire ct or of Aud it t hroug h COR se ction. G. (POO No s. 9 18 da ted 5 . 7.6 7, Au /COR/100/Orders dat ed 29.4.77). 1 01 1 dat ed 15 .4.7 5 and 566. Supervisi on of Inspect i o n s b y B r a nc h O f fi c er s. Ke epin g in view the provisio ns o f para 429 -RAM, t he q ua ntu m o f Au dit Off ice rs su pervisio n o f in spect io n h as b een prescribe d as und er. I. Inspection of Construction of fice s an d review of ma jo r works an d sch emes no n-pe rso nne l po rtion 75 % to 10 0% Persona l po rtion nil II. Impo rta nt division al an d HODs' i ns p ec t i on s lik e Eng in ee ri ng , Operating, commercial, signal & t e le -c o mm u n i c a t i o n , e l e ct ri ca l et c De pa rtme nts. no n-pe rso nal p ortion 75% to 1 00 % pe rso nal p ortion Nil III. M i n o r Ex e c u t i v e O f f i c e s Nil 567 . Inspec ti on of s ub-offic es . (Pa ra 45 2-RAM). In resp ect o f su bdivision al o ffices u nd er the ch arge of a G azet t ed Officer su ch a s Asstt.Engineer etc. t he inspection should be conducted to t he extent prescrib ed for o ffice s u nde r the main office in spect ed on bo th ope n line and con stru ction branch es. Principal Director of Audit, Central Railway 236 2. On ly one sub -o ffice u nde r ea ch of the sub-divisional offices viz; AEN's of f i c e s hou l d b e in s pe c t ed alon gwi t h t ha t o f f ic e . Wh ere t he re a re n o s u bdivisional offices under a Divl.Officer e.g. DRM (Optg), DRM (Comml), t wo su bo rd inate office s sh ou ld be in spe cted a long with tha t of fice . When howe ver th e inspe ction o f th e main of fice reve als irre gu la rities in the accounts of sub-offices, the inspecting office r may consider taking some mo re sub-office for inspection with the pri or a pprov a l of t he P r. D i re c t or o f Aud it . I t is impo rta nt th at a ll th e initial vouch ers in a su b-office a re thoro ugh ly ch ecke d an d n ot skipp ed over as u nimpo rta nt rou t in e. Very ofte n, it is the o rth od ox aud it o f ro ut i ne i t e ms t ha t re v ea ls grave irre gu la rities in acco unt s. (CAG' s lette r no s.11 66 -RAI /A8/ 17/6 0 da ted 19.4.61 and 2679-RAI/A8/17/60 dated 1 8 . 9 . 6 1 P O O d a t e d 6 . 6 . 7 1 au/CO R/Co n-7) 568. Inspection of new offi ces. Prop osa ls for insp ection o f n ew o ffice s wh ich are o pe ned afte r th e fina lisa tio n o f the ann ua l insp ectio n prog ra mme sh ould be su bmitted to the Pr. Direc tor of audit for appro val with the followin g inf ormation. 1. Na me of the office p ropo sed for inspe c tion during the mont h o f 2. Da te o f op en in g n ew o ffice 3. Ju stifica t ion f or op enin g th e o ffice 4. Sa nction ed streng th of the o ffice - GOS, NGO s an d work cha rged est ablishmen t if an y 5. N am e o f t he w o rk / s f o r w hi c h o f f i c e i s o pe ne d w it h est imat ed/sa nction ed cost. 6. Bud ge t provisio n a nd actu al exp en diture b oo k ed etc. 2. Th e instruct io ns co ntain ed in pa ra II (1) to (7 ) of th e se cre t PO O No.1 09 6 dat ed 20 .6.8 4 re ga rd in g Au dit O ffice rs sup ervisio n o n the insp ection of execu t ive o ffice s, su b-division al o ffices co nstruction , s t o re s & w or k s ho p a nd c as h departments may be referred to. 569 . Points to be se en during Inspec tion: Paras 431 to 4 48 of RAM wh ic h c on t ain t he i mp or t an t p oi nt s t o b e s e en du ring l oc a l in s pect io n o f va rio us office s sh ou ld be refe rre d. A reg iste r o f po in ts to be see n du ring in spect io n sho uld be ma in taine d fo r no ting th e po in ts not ice d du ring Ce nt r al Au dit o r a s a r es u l t o f re v ie w o f c er t ain c as e s or a s o bs e rv e d f r om paras o f a udit a c tivities e t c. which ca n o nly be verifie d d uring lo cal in spect io n. Beside s, th is an y sp ecial poin t s se le cted b y th e Pr.Dire ctor o f Audit , Dy.Director or other Au dit Offic er s s ho ul d als o b e n ot e d i n t he re gister of poin t s for furth er exa mina t ion . 570. Check of Labour Paysheets. Che ck of lab our p ayshe ets in Ce ntral Audit has been discontinued (cf CAG' s l e t t e r o . 6 4 0 -5 90 / RA I / 8 - 1 1 d a t e d 5.3. 74). These shou ld be ch ecke d du rin g lo cal in spe ctio n o f e ng in ee ring offices etc. to the extent prescrib ed in the MOI. The instructions co nta ined in p ara 2 75 RAM shou ld b e b orne in min d. 571. Drafti ng of audit notes (p aras 4 54,4 68 RAM). Th e inspe ction n ote s sh ou ld be writte n in most polite a nd imp ersona l la ng ua ge. Un civil la ng uag e a nd all remarks an d su gg estion s of po ssib le frau d sh ou ld be avoide d. The n ote s sho uld b e p re cise an d fa ctua l. 2. Th e insp ection no tes sh ou ld be writte n a nd han de d o ver da ily b y the me mbers of in spe c tio n pa rty to t he AAuO /SO (A) inch arge a long with docu ment s o n which th ese n ote s ha ve be en b ase d. Comp le te p articu la rs o name s , de sig na t io ns, ticket nu mb ers, refe re nce t o th e vo uche rs nu mb er, Office Manual 237 date an d amo un t etc. sho uld b e g ive n in th e inspe ction n ote s to e nab le the divisional offices to trace the basis of objection. The AAu O/SO (A ) after ve rifying th ese note s as we ll a s an y writte n b y himself ha nd the m ove r to the officer in charge of the Office insp ecte d a nd ob taine d his remarks there on, if an y, a s fa r a s p ossible. The n ote s sh ou ld then be su bmitted to the in spect io n Off ice r d uly ed ite d. Th e insp ecting of fice r sh ou ld see tha t all th e impo rta nt ite ms p ertain in g to ea ch o ffice ha ve b ee n co ve red and the wo rk h as b ee n do ne in a d il i ge nt m an ne r. Th e i n s pect i o n no t es s h ou ld then e discussed wit h th e Off ice r in ch arge of the office in sp ecte d a nd in ca s e o f his un avo id ab le ab s enc e w it h h is n ex t s e nior. Su c h o f t he obje ct io ns for wh ich co nvincing e x plan ation is given d urin g discussion migh t be omitte d re taining only the p aras which ne ed p ursua nce in the usua l co urse sh ould b e includ ed in the in spect io n repo rt. Th e insp ecting officer should indicate the re m ar k s o f Exe c ut i v e O f f ic e r i n t h e m ar gi ns o f the in spection notes for the informatio n of the Dy. Director/Pr.Director of Aud it and f ur t h er re f er en c e l at e r i f n ec e s s ar y . T he in s pe c t io n r ep or t s sh ou ld be classified as Sp ecial L ette r, pa rt I an d Part II in spectio n rep ort in accordance with the instructions co n t aine d in pa ras 45 1 to 458 -RAM. In re spect o f all un its wh eth er lo cate d in Mumb ai or ou tstation s, spe cia l le tter and pa rt I I nspe c tion Re po rts sh ou ld be issu ed afte r o bta in ing t he a pp ro val of Pr. D i re c t or of a ud it i n all c a s es . A copy of the special le tter or Part I Inspe c tion re port/Audit No te so issu ed sh ou ld be sen t to Re port se ctio n. A co py of th e sp ecial let t er sho uld also b e sent to the Dy.CAO (G) b y na me wh o h as be en no mina ted by th e FA&CAO to de al with imp ortan t au dit obje ct io n. (Au / COR/VII-2/ 69-70 /da t ed 3.1 . 70 ) 3. The ob jection includ ed in spe cial let t ers, p art I I nspe ction Rep orts sh ou ld b e well draf ted a nd self-con taine d givin g all info rma t io n so tha t they can be proce ssed for Draft Parag ra ph wit hou t d elay. The draft in g o f su ch o bjection s is th e pe rso na l resp onsib ility of th e Au dit Officer co nc e rn ed . Wh ile s ub m it t in g t hese r ep or t s f o r ap prova l, r el ev a nt pap ers co nta ining the Ra ilway Administration s vie ws exp re ssed at th e Rou gh Au dit No t e s t a ge o r d ur in g dis c us s i on w it h t he E x ec u t iv e of f i c er s s ho ul d be su bmitted to the Dy.Director/Pr.Direct or of Au dit in order to enable them to app re ciate th e prop osed obje ctio n in it s pro per pe rsp ective. These sh ou ld be su bmitted with in a fo rtn ight o f th e comp le tio n o f inspe ction so as to issu e th e ob jection or Insp ection Rep ort with in a mo nth of t he co mpletion of th e in spectio n. Th e Inspe c tion Repo rt s (p art I & II) a nd specia l le tters sh ou ld b e issue d within a p eriod of o ne mon t h (4 weeks) from t he da te o f co m pl et i on o f t h e in s pe c t io n. I n a ll c a s es f ou r c opie s o f Pa r t I an d t wo co pies of part II Inspection Reports should be se nt to t he FA&CAO /DAO . Each se ction/ division ent ru sted with insp ection sh ou ld se nd a re turn in the form p re scribe d vide ann exu re 36 A to th is Ma nua l t o reach COR section b y t he 2 nd o f e v ery m o nt h . C O R s ec t i o n s ho ul d c on s olid at e a nd su bmi t t o t he Pr.Directo r o f Aud it (cf pa ra 21 7 of th is ma nua l) for his info rmatio n. If an y dela y is ap preh end ed in the issue of Insp ection Rep ort, d eta iled explan atio n fo r d elay sh ou ld be given in th e Retu rn. 572. Di sposal of Audit Objections (Paras 4 69 -4 78 RAM). The rep ly to sp eci al l et t e r o f pa rt I Aud it obje ct io n r ec e ive d f r om t h e R ai l wa y Administration sh ou ld be scrut in ise d wi th con sid erate ap proach . No use f ul purpo s e w i l l b e s er v ed y k ee pi ng t he un t en ab le / t r il i ng ob je c t io ns p en di ng . Th e Bran c h O f f i c er s ho ul d s en d t he p ro po s al f or c l osu re o f t he s p eci al le tter through their supervisory officers (i.e.Dy.Dire ctor) for obtainin g the Principal Director of Audit, Central Railway 238 app ro val of t he Pr. Directo r o f Au dit. Su ch p ro po sals sho uld con t ain brie f re sume of th e ca se s the ma in argu me nts give n by th e Railwa y Administration which are con sid ered sat isfa ctory to close th e ca se. In re gard t o p ar t I I I n s pe c t io n R epo r t s a nd A udit N ot e s , t he i ns t r uc t i on s co nta ined in p aras 4 60 to 3 461 of RAM ma y be bo rn e in mind . 573. Register of Progress of Inspections. T he R egis t e r o f P ro gr es s o f I ns pe c t i on s s h ould b e ma i nt a in ed a s p re s c ri be d i n pa ra 4 26 R A M. F or su bmi s s io n o f t hi s r eg i s t er C h ap t er XXI o n M ai nt e na nc e a nd S ub mi s s i on o f Re gisters a nd Ann exu re 36 shou ld b e refe rred . 574 . Rev i ew of Ma jor Wor ks. In accordance with the instructions co ntained in para 60 of the MOI read with CAG's letter numb er 647-RAI/811/7 3 d ate d 5 . 3. 74, ma jor works costing Rs.1 cro re an d o v er in ca se o f Track ren ewals an d ove r Rs.50 la kh s in ca se of other works should be tre ate d as sep arate units fo r insp ection . Wo rks on wh ich actu al expe nd itu re incu rred exce ed s Rs.5 la khs o r 10% of the estimate d co st wh ic h ev e r i s h ig he r s h ou ld be t a k e f o r i n sp ect i o n i n a lt er nat e y e ars . T he abstra ct est imate sh ou ld b e taken a s th e criterion for det ermin in g wh eth er the wo rk co nce rn ed is a major on e o r n ot f or the pu rp ose of review. In ca se of la rg e projects, the d eta ile d e stima tes sho uld also b e take n as a ma jo r work for re view if the cost of su ch estimates is as prescribed for the re v ie w. 2. The sco pe of review sho uld includ e a d eta ile d che ck of con t ractors on accou nt bills a nd ot her p aid vouch ers fo r the mon t h se lected . The review sh ou ld a lso includ e a stud y o f the files relat in g to th e wo rk in a ccoun ts and tech nical b ra nche s no t on ly in Division but also a t Hea dqu arters. 3. D ur in g t he re v ie w o f m a jo r w or k s , it s h ould b e s ee n w he t he r t he wo r k i s bein g e xecut ed efficien tly an d e con omic a lly and th at ad equ ate co ntrol is bein g exe rcised by th e Ra ilway Administra tion o ver the closure of a ccoun ts and prepa ration o f completio n re po rts a nd th at th ere are n o case s o f abn ormal d elays in closing th e acco unt s of works a fter t heir p hysical co m pl et i on . W he r ev er p os s i ble, t he p ai d v ou ch er s e t c . o f t h e mo nt h selected for detailed check sho uld be o bta in ed from Accoun ts o ffice and t a k e n t o t h e o f f i c e i n s p e ct e d f or scru t in y. 4. The time allo wed fo r su ch insp ection is 6 days a nd if th is time limit is found in sufficient, the Pr.Director of Audit is empowered to in crease the durat io n d epe nd in g u po n th e q ua ntu m o f th e work. 5. In a ddition on e or two comp le ted wo rks se le cted b y Pr.Directo r o f Au dit sh ou ld a lso b e revie we d every ye ar. For th is pu rp ose, comp le ted works sh ou ld be includ ed in th e yea rly insp ection pro gramme to be sub mitte d to CO R se ction. A major work may b e de eme d to be co mplete d o nly when the wo rk is co mp lete d in a ll re spe cts a nd a ll ad ju stment s includ ing p aymen t o f Co nt r ac t o rs b il l s , a dj us t m e nt of St o r es debits, etc. re sulting to the work re ma de a nd completio n re po rt th ereo f drawn u p. Till the n it sho uld be tre ate d as wo rk in prog re ss. While furnishing su ch a list, th e Branch Officers should in dicate the works in re spe c t of which comp le tion rep orts have be en drawn up to f acilitat e se le ctio n. If th ere a re no such works, it sh ou ld b e men t ion ed specifically as su ch in the a nnu al insp ection progra mme. 6. L ist o f items to be checke d d urin g review of major works is given in Ann ex u re 3 7 t o t hi s m a nua l . O p po rt u ni t y ma y a ls o b e t ak e n by t he Office Manual 239 I n s p e c t i o n P a rt ie s t o p a y a s u rp r is e v i sit to witness gang payments if they hap pe n t o t ak e plac e d ur in g t he p er io d of in s pect io n. Pr. D i re c t or o f Aud it ' s p r ev i ous o r ders s ho ul d b e o bt a in ed for exercising such a check. (CAG ' s secret lette r no. 857 -ra i/8 1-63 DATED 3 1.3 .64 an d Au/COR/Con -3 d a t e d 1 2 . 6 . 6 4 ; Au / C O R / 1 5 / I nsp /prog ra mme of Co nstruction sectio n, Jh ansi) 7. In cases wh ere th e review co uld n ot b e co mplete d in a ll resp ects (du e to non -p assing o f co ntracto r’s b ills et c) all such pe nd in g ite ms may be no ted and reviewed at t he time of n ext insp ection of the ma jo r wo rk. 575 . Re vie w of Inspe ction Re ports. It sho uld be seen that whe n an of f i c e, t h e in s pe c t io n r ep or t f or w h ic h i s ou t s t an di ng a t t he t i m e o f i t s ne x t in s pect io n, i s b ei ng in s pe c t ed , t h e r ep or t s hou l d be c a re f ul l y re v ie w ed a t the time of Insp ection an d a ll impo rta nt poin t s sho uld b e upd ate d and in c lu de d in t h e la t es t re po rt . Ho w ev er wh ere t he e nt i r e or a lm o st e nt i re re port is o utsta nd in g a spe cia l mentio n o f th is fact sh ou ld be mad e in the su bse qu ent re po rt and th e fa ct also be brou gh t to the no tice o f the Pr. Di r e c t o r o f Au d i t f o r s p e c i a l a ct io n a t h i g h e r l e v e ls . 576. Shop inspections. See pa ra 47 0 o f t hi s M an ua l. 577 . Traffi c Audit Ins pection. Se e c h apt er XVI o f t hi s m an ua l o n T r af f i c Aud it (station In spe ct io n) Not e. Th e ge neral in stru ctions given h ere for co nd ucting inspe c tions app ly to sh op and Tra ffic Au dit In sp ectio n as we ll. 578. Time all ow ed for inspection of various offices. Time allowed for in spect ion of various offices together with th e pa rty compo s itio n is given in the Annexure 38 to this Ma nual. 579 . Inspe ctions of stations se rvin g Marsha lling yards, in tercha nge poin t s, transh ipmen t an d re packing sh eds, ru nn in g sh ed s, of fice s of TXRs co nn ecte d with Ma rsh allin g Ya rd s an d Tran shipmen t she ds. a. Ma rsh alling ya rd s. The CAG ha s directed th at one o r two marsh alling ya rds sho uld be insp ecte d in a yea r. The Pr. Dire ctor of Au dit ha s, there f ore la id d own th at the insp ection o f two marsha lling yard s sho uld be co nd ucte d in a yea r. This wo rk shou ld be en truste d to the Sp ecial in v es t i ga t io n C e ll. T ha t c el l s ho ul d p re pa re a y e arly p ro gr am m e a nd s end it to th e COR section simila r to othe r insp ection prog ra mme s . Th e Sp ecial Invest ig ation Ce ll sh ou ld co nd uct the insp ection with th e assistan ce of the Divl.Au dit office co ncerne d an d co ver t he e ntire workin g o f t he marsh alling ya rds. This sh ould not , ho we ver, aff ect th e insp ection of su b-offices u nd er t he D iv l . I n s pect i o n P ro gr am m e. I f d ur in g s u c h in s pe ct io n o f m ar s h al li ng ya rds e t c. th ere a re a ny p oints wh ich n eed to be ta ken up t th e d ivision al le vel th ese sho uld be repo rted to the Divl. Aud it Office r conce rn ed who sh ould take up t he ma tter with their co un terpa rts and fina lly dea l with them. b. I ntercha ng e Poin ts. Whe n a sta t ion is sele cted for in spectio n b y He ad qu arters Traf fic Au dit Se ctio n, th e na me of su ch station sho uld be in timated by TAI section to the conc erned Divl.Audit Office rs who will und ertake the in spect io n in so fa r a s in tercha ng e asp ects a re conce rn ed . Th e Divl.Audit Officers should deput e t h e i r o w n s t a f f r e q u i r e d f o r t h e purpo se and a lso sup ervise th e p art o f the insp ection . Th e Divl.Au dit Officers should workin g close liaison with the Audit Officer wh o is in spect in g t he station a ccoun ts. If du rin g su ch in spect io n t he DAUOs n ote so me po in ts wh ich req uire fu rther exa mina t ion t HQrs, th ese sho uld be re ported to the ECPA section for furt her act ion. Principal Director of Audit, Central Railway 240 c. Tran shipmen t an d Rep acking She ds. If sta t io ns sele ct ed fo r insp ection hap pe n to be Tran shipmen t o r rep acking sh eds, th e in spe ctio n of the sh eds in cluding small ma rs halling yard attached to the Tranship ment sheds sh ou ld be co nd ucte d in ad dition t o the re gu la r sta t ion in sp ectio n. This in s pec t io n s ho ul d b e do ne by t he Tra f f ic I n s pe c t io n Pa rt y a l ong w it h s t at i on in spect io n, covering all th e Tra nsh ip me nt an d re pa ckin g shed s. Po in ts notice d in resp ect of matte rs coming u nde r th e division al se t up sho uld be re ported to the Divl.Audit Of ficer concerned for taking up wit h the Ac c ou nt s o r E x ec u t iv e O f f i c er s an d t o b e pu r su ed t o f in al i t y by h im . 580 . T i m e S t a nd a r d s f or t he i n s pect io n de s c ri be d i n t h e f or eg oi ng parag raph s. a. Marsha lling yards. 10 to 1 5 d ays f or the Pa rty dep en ding up on the vo lume of traffic handle d by the stat io ns/yards. No te. Th e p eriod of 1 0 to 15 da ys allowed fo r insp ection of a Marsh alling Yard ma y b e increa sed to 15 to 20 da ys, with t he spe cific a pp ro val of the Pr. Dir ec t o r o f Au dit , i n r es pe c t of M a rsh al li n g y ar d s- w he re t he t r af f i c han dled is qu ite large. b. In ter-Ch an ge po in ts. 4 to 8 da ys for th e Party de pe nding u pon th e u nit se l e c t e d f o r c h e c k . c. Tra nship me nt o r Re pa ckin g she ds. 3 to 6 da ys for th e p arty de pen ding upo n th e vo lu me o f traffic ha nd le d b y the she ds. For the s e inspe c tions, th e p arty sh ou ld ge nerally con s ist o f one AAu O / SO ( A) a nd o ne Au dit o r ex c e pt t ha t i n t h e c as e o f M ar s ha l li ng y a rd s one AAuO/SO (A) sho uld be de put ed fro m t h e H Q r s (S p e c ia l I n v e s t ig a t i o n Ce ll) and on e AAuO/SO (A) a nd o ne Au d it or sh ou ld be p ro v ided by the Divl.Au dit Officer co ncerne d. 2. G az e t t ed S up er v isi on i n r es p ect of t he s e i ns pe c t i ons s ho ul d b e t o t he e x t e n t o f 5 0 % o r a s a p p ro v e d b y t h e P r. D i r e c t o r o f Au d i t . 3. T he m ai n p oi nt s t hat s ho ul d b e s e en duri ng s uc h in s pe c t io ns a re in dicate d in pa ra 5 54. An ne xures 3 4 to t his Man ual sh ou ld a lso be re f e r re d t o . (CAG's letters no.641-590-RAI/8-11/73 dated 5.3.74 268-590-RAI/8-11/73 dated 22.5.74; POO nos.1009 dated 16.12.74 and 1058 dated 21.3.79). Office Manual 241 CHAPTER XXI MAI NTENANCE AND SUBMISSION OF REG I STERS 581. General. A systematic record in g of various it ems of audit done is a pre-re qu isite for ef ficien t co ndu ction of a u d it . E a c h s e c t io n in t h e H Q r s . office an d Bran ch Office s sh ould th erefo re ma inta in reg isters to re cord the it e m s of w o rk d on e. T o ach ie v e u ni f ormity in th e maint ena nce of these re gis t ers i n dif f er en t s e c t io ns a nd a ls o t o en s ur e t ha t t h e m e t ho d o f re c or di ng p ro v id es f or ade qu at e i nf o r ma t io n f or t he p ur po s e f or wh ich t hes e are in t en de d, t he se c t i on s s h oul d ma in tain th e re gisters me ntio ned belo w in t he pres c r i be d f o rms g iv e n under various Annexure s to this Ma nu al. Annexure Number 1. Calendar of Returns 39 2. Progress report Register 40 3. Sectional Register 41 4. Selection Register 42 5. Current Review Register 43 6. Register of Special Notes/Inspection Reports letters 7. Register of Part II Audit notes/ and Part I Audit Inspection Reports 44 45 8. Register of Sanctions received from Railway Board 46 9. Register of Sanctions received from General Manager 47 10.Register of sanctions received from General Manager of Departments 48 11.Register of Outward correspondence and issue of reminders 49 12.Register of Pending cases 50 13.Register of Recoveries at the instance of audit 51 14.Register of Petty Objections 52 15.Register of Review of Contracts 26 16.Register of Review of Implementation of Contracts 27 17.Register of Review of Accounts office Work 54 18.Register of Original Audit and Post Review Offices/Asstt.Audit Officers/ Section Officers by Audit 55 19.Register of A Dak 5 20.Register of B dak and C dak 6 21.Register of Progress of Inspections 36 22.Register of Important Orders and Decisions 53 Only th ose re gisters wh ich are common to all section s ha ve be en in dicted in the foreg oing pa ra grap h. 582. Openi ng of Registers. T h e g en er al in s t r uc t i on s f or t he op en in g o f the re gisters de alt with in t his Chap ter a re given be lo w; Principal Director of Audit, Central Railway 242 i. Co de words th at ha ve be en a ssig ned , shou ld be ind ica ted t th e top r ig ht h an d c o rn er of t he ou t er c ov e r o f t h e r eg is t e r e. g . C R f or C al en da r o f R et u rn s . ii. In the centre of the cover of th e follo win g de tails sho uld be men t io ne d. O F F I C E O F T H E P R . D I R ECT O R O F AU D I T , C EN T R AL RA I L W AY , MUMB AI CST. N am e of t he s ec t i on (o nl y a bb re v ia t i ons e. g.Est t.HQrs.Co nstn .HQrs. etc.) s ho ul d be used Name of th e Re gister (in Block L ette rs) Pe riod to which the register re la tes Pe rio dicity of sub mission an d the a uth ority to which due (see s pe c i me n a nn ex ed ) iii. At t he le ft ha nd bot tom corne r, t he period of rete ntion of the re gister sho uld be in dicate d. iv. On th e fro nt le ft in sid e cove r pa ge, a refe re nce o f th e au thority pre scribing the re giste r sh ou ld be qu ote d. v. The re gister sh ould be pag e n umb ered in the tidy man ne r v i. T he f ir s t pa ge s ho ul d c o nt a in t he I nd ex vii. The th ird pa ge sh ould b e used fo r Reco rd o f Sub mission (i.e. the 2n d sh ee t) viii. A few p age s at the en d o f th e reg ist er sho uld b e ke pt blan k for r ec or d in g brie f a ns w e rs t o t he q ue ri es or re m ar k o f D y . D i re c t or (A)/Pr.Director of Audit at the time of re view of t he register. ix. Co lumns sh ou ld be drawn nea tly in ink a nd the tit le s writte n u p (or typ ed if p ossible) clea rly/leg ib ly in block lette rs. x. Whe ne v er a re gister is closed a nd ne w re gister o pe ned , th e Section O f f i c e r/ A s s t t . Au d i t O f f i c e r s h o u l d r e c o rd a c e rt i f i c a t e o n t h e i n s i d e c ov e r p age of t he r eg i st er t o t he e f f ec t t h at al l i t e ms h av e b een c or r ec t l y c ar r ie d f o rwa rd f ro m t he c lo s ed re gis t er. x i. A h ig h s t an da rd o f n ea t ne s s s h ould b e ob se r v ed i n t he m a in t en ance of the re gisters. The staff co nce rn ed sh ou ld be an swe rable in this regard. 3. Th e p erio d p re scribe d f or the usa ge an d p re servation of re gisters me nt i on ed i n t h e a nn ex u re s s ho ul d b e t a k en as f in an c ia l y ears e . g. i f a re gister is o pen ed for the ye ar 19 91-9 2 an d is re quired t o be preserved for 2 yea rs, it sho uld b e pre se rved u pto 31st Ma rch 199 4. Th e instruction s co ntin ued in p ara 92 of th e RAM an d p ara of this O ffice Man ua l sh ou ld be b orne in mind. 583. Submission of regi sters to Dy.Director/Pr.Director of Audit. All se ction s a nd divisio ns which re und er ch arge a nd d ire ct su pe rvisory ch arge of the Pr.Dire ctor of au dit sh ould sub mit t he re gisters to the Pr. Di r e c t o r o f Aud i t a c c o r d i n g t o i nstructions given in the re levant ann exu re s of th is Of fice Ma nu al. Se ctio ns a nd division s which are und er dire ct ch arge an d dire ct su pe rvisor y ch arge of the Dy.Dire ctor sh ou ld su bmit th e re gisters to the Dy.Dire c t o r . H o w e v e r , w h e n t h e re a re a n y Office Manual 243 impo rt ant results of orig inal aud it, cu rren t a nd p os t re v ie w , t h e re gis t ers sh ould be submitted to the Pr.Director of Audit . 2. Section s an d d ivision s which ar e und er d irect cha rg e o r dire ct su pe rvisory cha rg e an d also sect io ns which are o ut of Mumba i a nd a re und er d ire ct su pervisory ch arge o f Pr.Directo r of au dit shou ld send a mo nt h ly r e port t o t he Pr. D i re c t or of Aud i t t hr ou gh C o- or di na t i on s ec t i on , brin ging o ut ca ses of d elays/a rrea rs in su bmission of retu rn s alon gwith the mo nth ly an d qu arterly a rrea rs rep ort in th e same fo rm in wh ich arre ars a re re f le c t e d i n t h e C a l e n d a r o f Re t u rns, vide An nexu re to this Manu al. 3. Th e period icity o f su bmission o f v a rio u s r e g i s t e rs / r e t u r n s t o AAu O s / Au O s / D D / Pr. D ire c t o r o f a u d i t i s s h o wn in Ann e x u re 5 6 t o t h i s ma nu al. S PECI MEN REG I STER Outer cover of Regist er(RPC) O F F I C E O F T H E P R . D I RE C T O R O F AU D I T , CE NTRAL RAILWAY, MUMBAI CST. ESTT HQrs. (REG ISTER O F PENDING CASES) (1 991 -92) TO A A U O - F -( 1 s t 3 rd M o n ) AuO/DAUO M -(10th) AuO/DAUO Q ( 1 s t w e e k ; A PR / J U L Y / O C T / J AN) D D (A )/ ( B) Q P. D . A - DO - Q -DO- Pe rio d o f Pres e rv a t io n: 2 y ea rs (i.e . up to 31. 3.94 ) Front le ft inside cover page Au t h o ri t y : 1 . Pa ra 2. An ne xure OM 3. PO O no s. DATED Pa g e n o . 1 Pa ge no.3 R AM - Index Re cord of Su bmission Principal Director of Audit, Central Railway 244 C HA P T ER XX I I 584. T RAI NI NG SECT I O N General As per the in stru ctions of the Pr. D. A. in Nov. 95 an d me eting with Pr.A. G , t ra in i ng a re a w as r ev i s ed . T hi s re v is i on will be impleme nte d in a ll IA & AD o f f i c e s . I n t h i s o f f ic e , In-house training wa s started from October-96. One post o f A.Au .O an d on e p ost of Sr. Au ditor was san c tio ne d fo r training se c t i on a nd o ne Sr. Aud i t O f f i ce r w i l l be in charge of training section and booking section. 2.Dutie s of th e se ctio n Train in g sectio n ha s bee n a llott ed th e fo llowing du tie s in conn ection with in -h ou se training an d g en eral training . 1. se l ec t i on of t r a in ee s 2. prepa ration of a nn ual train in g p ro gramme 3. prepa ration of mo nth ly train in g p ro gramme 4. se lection of faculty members 5. Co rresp on de nce with f aculty memb ers and callin g th em on t im e f o r t h e i r l e c t u re s . 3. De s c ri p t io n Sub mission of Q uarte rly an d Half-yea rly de tails of t ra in in g impa rte d to HQ rs . 4. I n- ho us e t ra in in g a nd G en er al c o urs e Select io n of e mp loyee s for the se cou rse s and in tima ting th em th ro ugh co rre s pon de nce . 5.Pa rliamen t ary Training Co rres p on de nc e w it h H Q rs; s el ec t i on o f e m ploye es f or t r ainin g and in t im a t in g t h e m . Office Manual 245 CHAPTER XXI II COMPUTER AUDIT 5 8 5 . C o m p u te r i s a ti on o n C e ntr a l R a i l w a y . C o mp ut e ri s a t io n o n c e nt r al Ra ilw a y w a s s t a rt e d wit h t h e i n st a ll at ion of an IBM-1 401 comp uter system in 1967. This was replaced by ICIM 2904 system in 1985 which wa s furthe r up grad ed to ICIM 6 06 0 in 19 88. Du ring 199 6, HP 9 000 compu t ers we re in st alle d as pa rt of RB’s p lan to h ave comp atible ha rdware at all zo na l Ra ilways. Th e majo r a pp licatio ns th at a re be in g p ro cessed on the co mpu t er a re Gen eral payroll, Provide nt Fun d acco unt s. G ood s and Passenger traffic accountal and st atistics, Stores accounting and in ventory co ntrol, O perat io n Statistics, Financia l Management system, Fuel ma nagement inf ormation system etc. 586 . Audit J urisdic ti on. W it h t he i ns t a ll a t io n of m in i c o mp ut e rs / m i c ro co mputers in various railway divisions/Workshops, stores Depots, sheds, su rvey an d Con s tru c tion e t c. seve ra l a pp licatio ns are b eing take n up in these un its fo r proce ssin g o f va rio us type s o f da ta includ in g fina ncial app lica tio ns like pa yro ll, fina ncial man age ment syst ems, in ven t ory accou nting a nd co ntrol etc. It is the re f ore ne cessa ry tha t EDP au dit sh ou ld be ta ken u p for the va riou s in stallation s o n a con t inu ous b asis to be d on e b y the au dit un its where compu t ers ha ve b een insta lled . 5 8 7 . I n tr o d u c t i o n t o I n for ma ti o n T e c h nol o g y (I T ) Au d i t. E DP a u d it i s part of c om pr eh en s iv e a udit of an o rg anis a t io n. EDP au dit p r in c ip le s a re the sa me as tho se which go vern a ll oth er sp he re s of au dit. The d iff erence is on ly in the a pp lica t io n of th ese principles. While compu t erisa t ion is ofte n viewed in terms of ch an ge s in the way thin gs are don e, a n a uto ma ted syst em does not necessarily require any new ideas. An automated system simply ap plies the p rocessing ab ilitie s of a co mp ute r to the t ask. By using the comp uter, the limitat io ns o f h uma n p ro c essing a bilities are elimina t ed . With proper systems design, the tasks can be performed in much the same ma nn er bu t more efficien tly by using the co mp ute r as a p ro cessing to ol. Co mput ers do not alter the basic concepts or objectives of systems controls. However, t he techn iq ue and po in ts of co ntrol must be ad opt ed to the chan ging con dition s and respo ns i b i l it ie s o f a n E DP e n v ir o n m e n t . 588. IT Audit objectives: The ob je ctives o f IT au dit are: a) to re view whether computer ba sed systems in corporate adequate proce du ra l con t rols and the se are n ot invalida t ed by sub sequ en t amen dmen ts b) to review the a deq ua cy o f co ntro ls go verning d eve lo pmen t and maintenance of computerised systems c) to re view th e ad eq uacy of a dmin istra tive and o rg an isa tion al co ntrols which en sure saf e an d exp ed ie nt d ay to d ay op eration of the in stallation d) to revie w t he acqu isition of co mpu t er facilitie s and e) to re vie w the use of re sou rce s an d t o a pp ra ise an d re port o n wa ster an d e x tra v ag ance an d ine fficie nt a dministration or po or value for mon ey 2. The s e ca n b e co vered un der se ve n f unctio nal h ea ding s i. A ud it re v i ew o f p la nn in g an d a c qu isi t i on o f E DP f a c i lit i es and u s e o f r es ou rc e s ii. A ud it re v ie w of i ns t a ll a t io n c o nt r ol s iii. iv. v. vi. vii. A u d it re v ie w o f s y s t e ms under development A u d it re v ie w o f p ro d u c t io n s y s t e ms A u d it re v ie w o f d a t a b a s e s y s t e m s Audit re view of mico-computer s y s t e m s / o f f ic e a u t o m a t io n I T a ud it tech niqu es 3. T he e x t en t and s c ope of EDP a ud it dep en d u po n th e state of de ve lopme nt o f impo rt ant ly, th e t echn ica l expe rtise of t he (E DP Audit Guide-New Audit u nd er t he a bo v e he ad in gs w il l co mp ute r orga nisation an d mo re a ud it pe rso nne l. G uide Series No. 1) 589. IT Audit 1. T he ov e ra l l w o rk o f c om p ut er a ud it i ng m ay b e d iv i de d i nt o: i. ascertaining t he system and reviewing the organisat ional and ope ra t i on al c on t ro ls o f t h e c o mp ut e r d ep ar t m en t ii. ascertaining and re viewin g application systems which are und er de velop ment or be in g run iii. ca r ry i n g o u r a u d it s o f l i ve d a t a a n d re s u l t s f o r s y s t e m s in u s e iv. ca rrying ou t an efficien cy an d ef fectiven ess a udit 2. While th e respo nsibilit y f or de sig nat in g, implemen ting and op erating accurate, reliable and secure computer systems of all types rests with the co mpu t er ma na geme nt, the au ditor ca n p ro v id e the compu t er ma na ger with an independent evaluation of procedures and systems. Care must be t ak en t o e ns ur e t ha t t h e a ud it or do es not as s u me m an ag em en t re spon sib ilities, b ecome in volved in th e d esign sta ge s, or lo se th e ab ility to ma ke a n in de pen de nt and critica l re vie w. Ne verthe less, th e au ditor sh o u ld b e a w a r e o f a ll s y s t e ms d e v e l o p me n t s wh i ch a re l ik e ly t o h a v e sig ni f i ca nt i m pa c t on t h e a ud it p ro c es s , a nd s h ou ld c on s id er prov i di ng specific comments on internal cont ro ls in th e light of weakn ess note d in the existing system and aud it needs such as data re tentio n, retreival facilities a nd au dit tra il. Th e a ud ito r is usua lly in volved in e nsuring tha t adequate contro ls are incorp orated i n t o t h e s y s t e m f o r a u d it p u rp o s e s . 3. O rg anisa tio na l and o perat io na l co ntrols sh ou ld provid e a secu re environ me nt in wh ich to de velop , main tain an d op erate co mp ute r b ased syst em, an d sh ou ld in corpo ra t e f ollo win g: i. ii. iii. provisio n o f a se cure a nd orde rly pro cessing environ me nt preven tion or de tection of u na uth orise d a ccess abilit y, in th e eve nt of eq uipme nt failure,to ensu re re constru ct io n of lost da ta a nd to provide co ntinu ity o f processing fo r critica l f unctio ns 4. App li c a t io n c on t ro l re qu ire me nt s c ov e r do c um en t at i on s t a nd ar ds , in pu t co ntro ls, proce ssin g con t rols, o utp ut co ntrols a nd aud it req uiremen ts. Th us a pp li c at io n c o nt r ol s s ho ul d e ns u re t ha t i. ii. iii. iv. v. vi. Office Manual all a nd on ly v a l id da t a a re au t ho ri s ed f or i np ut the inp ut, proce ssin g an d ou tpu t o f d ata is complete and accurate the syst em file s are se curely he ld a nd a ccurate ly ma in tain ed t h e r e is a n a d e q u a t e a u d i t t ra i l t o f a ci l i t a t e the tra cin g of a ny g ive n tran saction ba ckwa rd s on wa rd s through the processing cycle and the linkin g o f compu t er record s an d o utpu t d ocume nts to associat ed in put 247 5. Du ring th e e arly stag es of co mput erisa t io n, when b atch proce ssin g wa s wide ly u s ed , the co mput er wa s re gard ed a s an a ccou nting ma chine and aud it wa s carried out b y the use o f in pu t do cumen t s and ou tpu t prin tou t s wh ic h w er e c om pa re d w i t h pre-c al c ulat e d r es u l t s . T hi s t y p e o f au dit i s terme d a ud it a roun d th e co mp ute r beca use it lo oks t t he in put s and ou tpu t s of the system without any considerat ion of the processing done by the co mpu t er. Va riou s te chn iq ue s ha ve since be en d evelo ped f or ca rryin g ou t audits of live data and the results of computerised systems through the co m pu t er. T he s e C om pu t er A s s is t e d Au dit Te c hn iq ue s ( C AATs ) c an be broad ly cate gorised as i. CA AT p ro gr am s an d ii. test data techniques 2. CAAT progra mmes are use d for su bsta ntive test in g of compu t er processing , by providin g the fa cility to rea d compu t er file s a nd p erform se lective test through i. ii. iii. iv. st atistical selection of re cords su mmaris atio n and/or stratification of data file s se lection of key items ma the ma t ical calculat io ns 3. Test dat a t echniques are used for basic comp liance testin g of the applications system through t e s t c h e c k s , w h ic h c a n be designed so that each t ransaction tests some aspect of a c r it i c a l f i eld, pa rt ic u la rl y t es t i ng ma rg in al v a lu es 590. IT AUDIT CELL: IT Au dit cell is primarily responsible for conducting IT Audit reviews of ma jo r I T i ns t a ll at i o ns o f C en t ra l R ai l wa y l ik e P as s en ge r Re s er v at i on System(PRS), Unreserv ed Ticketing System UTS), Fre ig ht Op eration s Info rmat io n System (FO I S), Adva nce Fina nce an d Railwa y Earning s and Expe nd it u re Sy s t e m (A FRE S) et c . Be sides co nd ucting I T Aud it, t he se ctio n p re pa re s bud ge tary re quir em en t f or proc u re me nt o f hard wa re f or t he of f i c e. P ro c uremen t , in stallation an d ma in ten an ce o f ha rdware at HQrs a nd field o ffices is a lso lo oked afte r by th e section . This section also do es the deve lopme nt of inhou se a pp licatio n p ro grammes fo r h ou sekee ping work of the office. C om p ut e r t r a in in g n ee ds o f t h e o f f ic e a re an aly s ed an d s t a f f a re s en t to d ifferen t co mp ute r training cou rses co nd ucte d b y Re gion al Training Institute s an d (iCISA) Int ernat io na l Ce ntre fo r I nfo rmatio n Syste m Au dit, NO IDA. Ba sic and int ro duct ory level courses are con du ct ed by the ce ll a t the in -h ou se co mp ute r t ra in in g fa cility ava ila ble in the office. 591. Audit Approach to Computers: 1. The Vouching Approach and Audit Trails: The aud it or mu st have AUDIT TRAIL in o rd er to pursue the Vouch ing a pproa ch an d wit h compu t er syst ems this ma ybe in ade qu ate . Th e vo uching ap proa ch whe n ap plied to co mpu t er au ditin g is of ten calle d The Black Box Approach. Audit Trail impl i es t h e p re pa ra t i on a nd r et en t i on wit h in an orga nis at i o n. a. fo r an a de qu ate pe riod b. i n a r ea so na bl y ac c e s s ib le f o rm an d c . i n e n o u g h d e t a i l t o sa t isf y t h e au ditors,o f reco rd s wh ich allow e ac h d et a iled e l emen t o f a ny t r ansa c t i on t o b e t r ac k ed f ro m i t s Principal Director of Audit, Central Railway 248 so urce throu gh ea ch in terme diate sta t e to its final dispo sition a nd v i c e- v ers a i . e . t he f ac i l it y to use records to trace back in detail from the final outcome through the in termedia te stages b a c k t o t h e i n t i a l so u rce o f t h e t ra n sa ct io n . I t s h ou ld b e re alis e d t ha t t he i nf o rma t io n t ha t aud i t ors c a ll Aud i t T r ai l i s also th e info rmat io n th at man ag emen t ne eds fo r deta ile d co ntrol an d h ence is a lso man age ment Tra il. 2. The Verificati on Approach: With Ve rification Approach, the auditor devices in dep en de nt mea ns o f verify in g t he existen ce, o wn ership and va luat io n o f cash and asse ts.Ve rification tech niqu es ca n also be u s ed for othe r b alan c e shee t and Income a nd Expe nditu re a ccou nts ite ms. Und er this a pp ro ach , the a ud ito r visits co mput er ce ntre freq ue ntly to verify wh ether the la id down procedures ar e correctly being followed and checks wh at is b eing do ne in stea d wha t ha s be en do ne. 3. The Sy stem s Approac h: Un der the Syst ems Approach the auditor asks three qu estion s i. What is the official system ii. Is it o pe ra t in g, according to plan ? iii. i i i. I t is a d e q u a t e To answer the third quest ion, he also needs to keep three things to mind a) What should happen (to achieve the objectives of the system) b) What can go wrong (in view of the way t he system has been d esign ed ) c ) Wha t ha s be en do ne to sto p it? Th e syst ems au ditor will use vouch ing an d ve rification te chniq ues as su bordinate tools to his systems approa ch. Fo r instance, he will conduct limited tests to conf irm his understan ding of the system by checking the processing of a limit ed number of transactions thro ugh the system. These are some time s ca lle d WALK THRO UG H o r CRADL E TO GRAV E t e st s a s they usually trace the processing of data right thro ugh the system. The testing may not be feasible if a u d i t t ra il i s d e f e ct i ve . 4. Testing. The au ditor sh ou ld the refore con du ct comp lian ce t ests o f app aren tly stro ng con t ro ls upo n wh ich he ho pe s to p lace re lian ce. These will be perf ormed after the evaluation of t he system and are designed to discover wh eth er the s e co ntrols h ave in fa ct o perat ed throu gh out the period un der review. Wh ere t he a ud it o r h as id en t if i e d a we akn es s , in co nt r ol eit he r d ur in g his re view of the system or due to an un satisfactory re sult of a compliance test, t hen he will conduct checks on we akness of substantive tests, wh ich are de signe d to id en tif y and asse sse s the effects of control weaknessess or c on t ro l v i o la t io ns . 5. R i s k Ana l ys i s: One ve ry productive variant of the systems approach is kn own as Risk Analysis. In summary the issues to be addressed in risk analysis are INTEGRITY, SECURITY AND PRIVACY. a) Integrity means completeness an accuracy b) Security mea ns g uaran tee ing co ntin ued Int egrity an d c ) p ri v ac y m e an s prot e c t io n f r om u na ut h oris e d a c c es s Office Manual 249 All systems have good and bad, deliberate and unint ended, characteristics or d esign f eatu res. Unsatisfa ctory characteristics (i.e.weaknesses) ma y re s ul t in u na c c ept able c o ns e que nc e s w h ic h a re of t e n c al l ed c o nt i ng en c ie s . Sen s ib l e en t er pr i s es w i ll de v el op a c o nt i ng enc y p la n t o re du c e o r e li m in at e the weakness and risks and to facilitate reco very if a cont in gency neve rt heless do es occu r. RECO VERY simply means restoring int egrity, se curity a nd privacy. To avo id d egra datio n of eithe r, the re mu st b e a patt ern of mo nitoring in order to re vie w th ese arrang eme nts in de pen de ntly and ob je ctively, an d th is mo nitoring mu st itself be formally provided for. Re stricte d entry to a uth orised pe rso nn e l only in the Computer cent re , Fire preven tion ba ck up p ro ced ure fo r da ta an d p ro gram files, prop er distribution of output, etc. are procedures required for prevent in g the risks in volved an d may b e reviewe d. 6. Sy stems Audit: Systems Aud it in clu des a ll activities un de rta ken to evaluate a computerised system at any stage of its lie cycle, from acqu isition or d eve lo pmen t throu gh o pe ra t io n a nd main tena nce and ultimately, replacement. The basic ob jectives in auditin g systems in clude evalua tion : a. System effectives: Does the system fulf il the aims for which it wa s acqu ire d o r deve lope d? Doe s it p erform the ind ent ed fun ctio ns corre ctly? Do es it provide the info rmatio n ne ed ed by use rs in a con v en ie nt f orma t and time ly fashio n? b. Syst em economy and efficiency: Is the use of system resources (h ardware, software , pe ople ; mone y) o ptimised? c. Da ta inte grity: Are th e inte rn al cont ro ls a de qua te to en sure th at e rrors are no t int ro duce d while en terin g, commun ica ting , p ro cessing sto rin g or re porting da ta? d. System se curit y: Are the inte rn al con t rols ad eq ua te t o e nsu re th at d ata ca nn ot b e a lte re d ma liciously or a cce s s ed by u na ut ho r ise d pe r s onn el? A re the system re sources adequately protected against theft, waste, fraud and na tural d isa sters? e . S y s t e m re g u la rit y : A re s y s t e m a c t ivi t ie s (e . g . acq u isi t o n , d e ve l o p m e n t , ope ra tion s, maint ena nce ) compa t ible wit h app lica ble laws, re gula t io ns.p olicie s, directives a nd guid elin es? Th ese ob je ctives a re broa d, and ca nno t be optimised simultaneously (e.g. in cre ased se curity can on ly be ob taine d a t th e expe nse of eco no my and ef f i c ie nc y ) . T h eref o re , t he a ud it o r m us t re f i n e t h e o b j e ct ive s t o re f l e ct t he issues that are essential during each stage of the syst em life cycle nd evaluate the system as a whole in the context of its aims and operational co nstrain t s. 592. Computer References: Th e f ollo win g may also b e refe rred : 1. Co mpu t er & Audit- Au dit Bu lle t in -De c emb er 19 82 2. Per f o rm an c e E v aluat io n o f C om pu t er Sy s t e m - Au di t Bu l le t in m ar c h 1 98 3 3. System An alysis-Jou rn al of Ma nag eme nt an d Training VOL 5 No.1 Ap ril 19 87 4. C om pu t er & Au dit - J ou rn al o f M an ag em en t & t r aining - Vol . 6 N o. 4 J an ua ry 1 98 9. 593 . I n - h ous e T r a i n i n g : Principal Director of Audit, Central Railway 250 In th e Con f eren ce o f Accou nta nts G ene ra l held in July 19 93 , it wa s re commend ed th at in-ho use Training in field off ice s sh ou ld b e started b y all Acco un tan t s G ene ra l to ca ter to the nee ds of th eir o ffice s wh ich sh ou ld have releva nce to field work a nd Jo b orie nted. In re sponse t o t h a t , t h e i n hou s e T r ain in g f o r Ars / Sr. Ar s a nd SO / AAu O s w a s s t art ed o n 0 7. 1 0. 9 6 and 11.1 2.9 6 resp ectively. 594. EDP Training courses: EDP tra ining co urses are prese ntly bein g con ducte d at Reg iona l Training Institute s (RTI) a t Mu mb ai an d Na gp ur. A ll o u r o f f ic e s i . e . Hq rs o f f ic e a n d f ie ld o f f i c e s a re a t t a c h e d t o R T I , M u mbai except offices located in Nagpur wh ic h are attached to RTI, Na gpur for EDP courses. In addition to regular courses con du c t ed at R T I s , s om e s pe c ia liz ed co urses are a lso co nd ucted a t iCISA, Noida . The no min ation s fo r these co u r s e s a re s e n t t o CA G ‘ s o f f i c e a f t e r r e c e i p t o f s p e c if i c l e t t e rs f ro m t h e m. Th e I T Aud it cell of this off ice con d u c t s s om e in t ro du c t or y l ev el b as i c co urses like familiarisation with comp u t ers an d pe riph erals, MS O ffice, MS Excel, e-ma il in t he In-house EDP training facility availa ble for this purpo se. ------------------ Office Manual 251 ANNEXURES Principal Director of Audit, Central Railway 252 ANNEXURE-1 Sr. No. 1. 2. 3. 4. 5. (Para – 9) Delegation of Administrative Financial Powers to the Director (Admn) Nature of Power Extent of Power Rule or Authority To act as Appointing and Disciplinary Authority for Group C for purposes of Central Civil services (CCA) Rules 1965 To act as Disciplinary Authority for imposing minor penalties mentioned in clause (i) to (iv) of CCS (CCA) rules 1965 in respect of all Group C appointed after 31st January 1962 To grant increments beyond the efficiency Bar stage to Group C and D. Full powers in Item No. 2, section respect of Group C & Part II of MSO appointed on or (A) Vol. II Third after 31/01/1962 Edition (1993) Full Powers ` -do- Full Power To transfer Auditor including Sr. Full Power Ars. Clerk/Typists and Group D staff within the Railway Countersigning of traveling Full Power allowance bills of Gazzetted staff (group B) 6. Countersigning of Medical claims of Full Power officers (Group B) 7. Grant of Casual leave to Audit Full Powers officers upto 8 days subject to the conditions prescribed in the RAM 8. Grant of Earned Leave, half pay Full Powers leave, leave not due, extraordinary leave, Maternity leave, hospital leave to all Officers and staff Advance of Pay and TA on transfer Full Powers to Gazetted staff (Group B) 9. 10. Advance of traveling allowance on Full Powers tour to gazetted officers Office Manual 253 FRS 25.POO 827 of 27.5.63 Item 8of Appx. 4of FR& SR’s Vol. II DRA’ s letter no. E8/8/52dtd. 27.6.55 SR191 and item 54 of Appx. 13 to FRS& SRS (POO 933 of 24.6.68) Item 5 of Appx. XII of Central Services (Medical attendance Rules 1944 (POO933) First schedule to Rule 3 (C) of CCS (Leave) Rule 1972 and CAG’s letter no. 1835-GE-II109-84dt August 84 POO 1118dtd 26.4.88 -do- Para 222 of GFRs(revised and enlarged ) 1963 second edition also POO 933/265 GFR Vol. I -do- 11. Grant of temporary advances from GPF to all officers and staff including those advances for which special reasons are to be recorded under Rule 12(2) GPF Rules Grant of withdrawal from GPF under Rule 15 of GPR Rules to all Officers and staff Allowing extra-ordinary leave to count for pension in certain circumstances mentioned in Ministry of FOM No. f6 (2-EV-68 of 18.4.68 in case of SOS, Sr. Auditor , Auditors, Steno, LDCs and Group D Staff To sanction reimbursement of tuition fees to gazetted officers (Group B) Full Powers 15. Sanctioning of over time Full Powers 16. 17. Weeding of records Full Powers Sanctioning of Passes and PTOs to Full Powers Group B Gazetted Officers a) To sanction bicycle advance to Full Powers staff permanent as well as temporary 12. 13. 14. 18. Full Powers Full Powers Min of Finance OM no. F6(2) EV/68 of 18.4.68 Full Powers Item 4 of Appx. to MoF letter No17 (I)EII(B)/64of 3.6.64 Para 2(6) of the GOI Min of FOM No F9/(5)EII (B)/60of 1.6.61 (Au/Admn vi 42 of 12.10.61) POO 835 of 29.3.63 POO 835 of 7.8.63 b) To sanction advances for Full Powers purchase of Fans to Group D staff 19. Local purchase of Stationery/ stores Principal Director of Audit, Central Railway 254 Fifth schedule to Rule 13 of GPF rules POO 1118 dtd. 26.4.88. Ministry of Finance OM No. 16B(37)EII(a)/58 dt. 2.1.59 GFR 212 Paras 249 7 263 of GFR Voll read with para 255 ibid Rs. 1500 PA. These CAG’s letter no. 17701/9869 dtd. powers are to be NGE exercised in such a 11.8.70 manner as not to exceed the over all limit of Rs. 7000 PA upto which Pr. Director of Audit is competent to incur expenditure unless the non-availability certificate is obtained from the Controller of Satisfactory 20. To sanction repairs office machine 21. Repairs to typewriters locally 22. Signing of indents for machines and appliances 23. 24. 25. Power to incur expenditure on the unkeep (servicing &maintenance ) of all office machines to the full extent in accordance with the Rate contract concluded by the DGS&D and on their repair overhauling etc(excluding the cost of parts required replacement ) to the extent of Rs. 20 per machine on each occasion subject to an annual limit of Rs. 100/- on each machine Repairs can be done without any limit for spare parts as long as such repairs are considered economical Rs.30 per machine office Full power upto a limit of Rs. 5 at a time and Rs. 15 PA indents need not be placed on the stationary office except when (i) it is not possible for the indentor to make local purchase or (ii) the store cannot economically be obtained by the indentor direct Winding and Regulating office Upto Rs. 15/p.m. clocks maintenance of call bells etc. Printing and Binding in emergent Rs. 500 p.m. cases (where the work is not executed through CCP&S) To incur expenditure on demurrage Rs. 10 in each case charges in which the competent authority is satisfied that the Office Manual 255 CAG’s letter no 770NGE1/139-68 dtd 30.4.69 MWH letterno.34/3/63PIIdtd. 9.10.64 CAG’s letter no. 1398NEEI 139-68 dtd. 3.6.68 for warding OM No. PI/1(14)/67dtd. 1.2.68of Ministry of Finance letter no. F3(7) EGI(B) /63 dtd. 14.1.64 for warded under CAG’s endor sement no 191 – NGE 1/59-63 dtd. 3.2.64 Item 52 of FR Vol. II Ministry of Finance no.F1(58)EGI69dtd 7.5.58 CAG’s letter no. 1311NEE1/35 58/III dtd. 7.8.58 expenditure is unavoidable No Powers upto Rs. Item 16-App. 3000/- upto Rs. Item XIII – of section of 300/-pa MSO (Admn)Vol.II 26. a. Purchase of furniture b. Repairs t o furniture c. Hire of furniture for office 27. Local purchase of Rubber stamps Rs. 25 p.a. subject and office seals to a limit of Rs. 10/at a time in case of non-supply or delay in supply from the agency of the Govt. of India stationary office. Permission to appear at the Full Powers examination conducted by the Institute of Cost &Works Acctt. Recording of certificate of Full Powers verification in service books of Gazetted Officers Miscellaneous office expense such Upto Rs. 300/as rat traps, glass tumbers, water napthalence, balls, insecticides, brass or other metal, polish, card boards, dusting or binding , cloth , calico cloth, name boards etc. Indent for Forms on the Manager of Full Powers Forms Press, Calcutta Fire Protection Upto Rs. 200/- 28. 29. 30. 31 32 Principal Director of Audit, Central Railway 256 Rs. 25 p.a. subject to a limit of Rs. 10/- at a time in case of nonsupply or delay in supply from the agency of the Govt. of India stationary office. POO 888 19.07.65 dated Rule 121 of GFR Vol. 1 Item 28 of App. 8 to GFR II 102 GFR I Item 15 appx. 8 GFR II. Sr. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. ANNEXURE - 2 (Para8) Delegation of powers to Audit Officer (Admn) Nature of Power Extent of Power Rule or Authority Countersigning/ Passing of Salary Full Powers Bills Sanctioning of leave to S.G. Clerks Full Powers Auditors Stenographers Clerk/T and ClassIV Advance of Pay and Travelling Full Powers allowance on transfer to Nongazetted staff. Advance of Travelling Allowance on Full Powers tour to Non-gazetted staff. Repairs to Bicycles Upto Rs. 50/-per case Conveyance Hire Upto Rs. 5o/- per case To incur expenditure on Electricity, Upto Rs. 5o/-per Gas and Water case Hot and Cold weather charges Upto Rs. 50/- per case Employment of staff from Upto Rs. 5o/-per contingencies case Liveries, Clothing and other articles Upto Rs. 50/-per case Services Postages stamps, Upto Rs. 50/-per commission on V.P.P. case Repairs to Furniture Upto Rs. 50/-per case Advances under Rule 12 of GPF Full Powers (CS) Rules of Non-Gazetted staff for which special reasons are not required Sanctioning of increments to all Non-gazetted staff where crossing of Efficiency Bar is not involved Sanctioning of Festival Advance Sanctioning of re-imbursement of tuition fees in the case of nongazetted staff. Countersigning of traveling Allowance Bills of non-gazetted staff. Office Manual 257 Rule 142-283 of Treasury Rules SR 206 No. 55-A of App. of FR & Srs. Audit officers Parel & Matunga will grant leave upto 30 days for staff working under them whom no substitute is called for P.O.O. 989of 31.3.73 Para 222 GFR Para 222 GFR P.O.O. 933 P.O.O.933 P.O.O. 933 P.O.O.933 P.O.O. 933 P.O.O. 933 P.O.O. 933 P.O.O. 933 P.O.O. 933 18. 19. 20. Passing of claims for reimbursement of medical expenses for nongazetted staff. Grant of Children Education allowance to non-gazetted staff. Grant of Earned Leave to Section 15 days to all S.Os Officers. at Hqrs. including CHQ when leave is recommended by B.Os without substitute Principal Director of Audit, Central Railway 258 P.O.O. 995of 19.4.73 for Sos. Working in Div1 Audit Offices , BB,JBP,JHs, BSL, NGP (including Const. and W&S Units), the Branch Officers will exercise these Powers. (P.O.O.989 of 31.3.1973) ANNEXURE-3 (Para-19) Register of Oath/affirmation Sr. No. Name of Servant 1 2 Govt. Date on which Whether an Designation Signature Oath/affirmation oath or of the was taken affirmation Officers was before taken/made whom the Oath/affirma tion was taken /made 3 4 5 6 (Ministry of Home Affairs Memorandum No. 39/52-Est. dated 31.7.52 received under Comptroller & Auditor General’s endt. no.137-NGE II/2-52-BE dtd. 20.1.53) Office Manual 259 ANNEXURE -4 (Para 21) Annexure showing the Delegation of Powers to (i) Asstt. Audit Officers and (ii) Section Officers (Audit) vis-à-vis their Duties and Responsibilities Sr. No. 1 1 Nature of Powers 2 A. Administrative Powers & Responsibilities To sanction Casual Leave to staff working under them. Extent Powers 3 6 days 2 -do- 3 To sanction Earned Leave 5 days to staff working under them To permit the s working Full Powers under them to avail of the Restricted Holidays 4 Principal Director of Audit, Central Railway 5 days 260 of Authority Remarks 4 5 AAuO Subject to the condition that the total period of SO(A) Absence at a time including prefixing and/or affixing of Saturday , Sundays holidays (Restricted holidays , compensatory leave does not exceed ten days. (Para 83 RAM) AAuO AAuO/SO(A) When such a holiday is required in continuation of Casual Leave it should not be taken into account for computing the limit of casual Leave upto which AAuOs/ SOs(A) are competent to sanction Casual Leave (para(iv)of POO No.1004 dtd. 23.3.74) 5 To grant permission to staff Full Powers to leave HQrs during and upto the period the AAuOs/ Sos (A) are empowered to sanction leave AAuO/ SO (A) 6 To grant Compensatory Full Powers Leave to staff working under them AAuO/SO (A) 7 To sign Home Line/ Full Powers Foreign Line Passes/PTOs for group B Officers(AuOs and Asst.AuOs) Gr.C and Gr.D officials on behalf of Pr.Director of Audit AAuO (Admn) in the respective office/ branch 8. To keep Home Line and Full Powers Foreign line pass PTO in their custody 9 To keep Duty Card Passes Full Powers in use in their custody 10. To issue traveling Full Powers Authorities to staff working under them for short periods 11 a. Controlling and closing of Full Powers the sections Attendance Registers Condonation of late Full Powers attendance of staff working under them upto one hour on not more than two occasions AAuO (Admn) in the respective office/ branch AAuO (Admn) Para 84 RAM& in the para 156 OM respective office/ branch AAuO(A) b.Travelling Authorities fro duty purposes may be issued with the Prior approval of Audit Officer /Div1. Audit Officer AAuOs/SOs(A) Para 80-RAM & para 39 Office Manual (1977) -doPara 40-Office Manual (1977) b. Office Manual 261 These powers will be exercised by the AAuOs/SO(A) to the extgent they are empowered to sanction casual leave or Earned leave as indicated against item nos(1) to (3) above (para44 OM 1977) Subject to compliance of instructions contained in sub para 4 of para 83 RAM Subject to the observance of instructions rules and orders issued by the Railway Board / Railway admn. from time to time POO No.1107 dtd. 6.1.86 Para 2 of POO no. 1107dtd. 6.1.86 c. To allow staff working under them either to attend office late subject to prior intimation or leave office earlier than the scheduled closure time only under exceptional circumstances or due to unavoidable I Upto one hour (maximum) II Upto two hours (maximum) 12 To sign Certificate of monthly Reconciliation of Attendance Register with Casual Leave/RH accounts of staff working under them 13 To assign (i) Special work /investigation of cases. Full Powers -do- Full Powers SO(A) Full Powers AAuO Para44-OM (1977) Full Powers AAuO/SO (A) I, Cf para 5 of (5) of Secret D.O. No. Au/COR/CON/10/450 dated 18.6.84 ii. However when the staff are required to work on Sunday and holidays, Branch officers’ prior permission should be obtained (cf: subpara 1 of para 80-RA, Journey programme in such cases should however, have the prior approval of the Branch Officer Extra work to staff working (ii) under them before and after the usual office hours in order to prevent accumulation of arrears of work or on Sundays and holidays 14 Countersigning of Travelling Full Powers Allowance bills of non gazetted staff drawing pay upto Rs. 1399. AAuO Note: 1. The power delegated under item 11(c) are discretionary 2. These are subject to observance of rules and instructions contained in para 80-RAM and para 41 OM(1977) 15. Attestation of entries in the Full Powers Service Book of Nongazetted Officers(other than those on the first page of Service Book.) However annual verification of Service Books will be attested by Branch Officer AAuO/SO (A) These powers will be exercised only by AAuO/SO(A) attached to administration section of Hqrs Office. B AAuO/SO (A) Second and subsequent reminders (DOS) would be issued over the signature of BOS and other Powers& Responsibilities Full Powers relating Audit activities Miscellaneous matters Principal Director of Audit, Central Railway 262 16 To sign routine Full Powers acknowledgements and routine reminders under their own designation (excepting acknowledgements to ADAI(R) and CAG(R)’s offices and excluding cases where DO letters have been issued by the Branch Officers or other higher authorities AAuO/SO (A) 17. To file all circulars of Full Powers routine nature AAuO/SO( A) 18. To issue acknowledgements and send returns of routine to HQrs.office viz. O/O The Principal Director of Audit from the outstation Audit unit/Branch Office , where Resident Audit Officer has not been posted 19 To dispose of routine correspondence (C-dak) such as Interim Replies, replies to letters/requisitions issued at their level. 20 To deal with the correspondence of he following nature i. Routine correspondence with the FA&CAO’s/DAO’s/ WAO’s office regarding part II Audit Notes & Inspection Reports, ROCs(upto first two reminders) Pursuance of Pt.II ii. objections.Review of Full Powers AAuO/SO( A) Full Powers AAuO/SO( A) Full Powers AAuO Office Manual Full Powers 263 Second and subsequent reminders (DOS) would be issued over the signature of BOS and the (POOno.992 dtd.31.3.73) Note: Printed routine letters and documents on which no objection is raised may be (viz AAuO/SO(A)on behalf of the Gazetted Officers in charge of the Sections. The inclusion in these letters of additional matters which do jnot bring any major question should not by itself be regarded as disabling the Superintendent (AAuO/SO(A) from signing such letters and documents (cf.para 70(d)-MSO-(Admn)Vol.I (1969)POOno. 1004dtd.23.3.74. Para 100(2)MSO(Admn) Vol.I (1969) POO no. 1004 dtd.23.3.74 i. Secret POO 1096dtd.20.6.84 No. i. Secret POO No. 1096 dtd.20.6.84 iii. iv. v. Accounts, Office Files, Issue of closure advices in respect of objections involving routine procedural matters(recoveries upto Rs.5/-GOS&Rs.25-NGOs) Issue and closure of Rough Full Powers Audit Notes during Central Audit & Inspection To arrange for and attend Full Powers monthly Tripartite Meetings for discussing Rough Audit Notes and Part II Audit Notes To submit routine Returns Full Powers *(excluding quarterly progress reports, monthly progress of inspections and monthly A,B & C dak returns) Principal Director of Audit, Central Railway 264 AauO AauO iii. Rough Audit Notes/Draft Inspection Reports conveying routine remarks such as calling for certificate , receipt schedules, wanting stamped receipts, subvouchers or other documents (POO 992 of 31.3.73) iv&v Secret POO No. 1096 of 20.6.1984 *Following types of Returns (given by of illustration) may be treated as routine returns-1.19-List of Delayed returns (after the list is approved by B.O.in CR)2.QQuarterly Audit Bulletin 3.QStatement of Outstanding Pt.I Audit Notes/Inspection Reports and special letter 4.QPermanent and present addresses of the staff 5.Y-Decalaration regarding dependent relatives . 6.YDeclaration regarding Passes/PTOs 7.YRequirement of Registers 8.Y-Annual Renewal of Insurance Policies in respect of Scooter/HB advance. CENTRAL AUDIT To make selection for 21. audit of sanctions issued by authorities subordinate to General Maneger viz. Head of Departments 22. To scrutinize and accept sanctions issued, authorities sub ordinate to General manager (HOD’s sanctions) selected for audit. 23. To scrutinize and accept in audit at their level General Managers AGMs/CAO(C)’sanctions relating to the matters and to the extent indicated in column(5) Office Manual Full Power s AAuO Full Power s AAuO/SO(A ) POO No. 992dtd.31.3.73 & POO no 933 dtd. 17.4.73 Full Power s AAuO Sanctions accorded by GM/AGM/as follows. AppendixI- Powers of General Managers (SOPGEN89 Part VI) i.BNon-gazetted staff Item nos (9)&(10) ii.C-General (Sanctions relating to Nongazetted staff only) Items 11to 25 iii. EExpenditure on Works not wholly chargeable to ordinary working expenses iv. F-Miscellaneous Item 44&50 Sanctions in respect of items enumerated in SOPGEN-89(Parts I to VI) V. Sanctions accorded by GM/AGM in the matters in respect of which PHODs/HODs/DRMs/ADRMs/ADRM s also have full powers or sanctions are within their powers. Vi. GM’s/AGM’s sanctions where Prior Accounts concurrence is not necessary. Vii. GM’s sanctions relating to award of contractsEngineering, Stores, workshop, Traffic and other matters valuing upto Rs.3 lakhs. Note.1. Sanctions carrying any special features from (1)to (VII) above should, however be put up to Branch Officers for their orders. (2) GM’s sanctions on the subjects enlisted in Appendix ix II of Chapter VI (SOPGEN89) which require their personal sanction/ approval should be submitted to the Branch Officers. 265 24. Acceptance and noting of Full sanctions for post final Powers withdrawals form PF 25 26. 27. (i) (ii) (iii) (iv) (v) 28. (a) To select vouchers/ documents for monthly Central Audit &(b) to issue requisitions calling for vouchers/ records from Accounts/ Executive office Scrutiny of submission and signing of monthly selection Register (Monthly submission) Scrutiny of submission and signing of routine registers (monthly/quarterly) Register of Part II Audit Notes and Inspection Reports (ANII) Register of sanctions (HODsII) Register of Outward Correspondence (ROC) Register of Pending Cases(RPC) AAuO/SO (A) Full AAuO Powers(a) &(b) Full powers only for (b) Full AAuO Powers Full Powers AAuO Full Powers AAuO Full Powers Full Powers Full Powers AAuO Full Powers Selection of documents Full and vouchers for Current Powers Review from the audit completed by Auditors during the month in respect of the items mentioned in Column(5) AAuO Register of B&C dak Principal Director of Audit, Central Railway 266 This also applies to sanctions accorded by other Railway Audit Office which are received in EHQ section of this office. POO-992 para (iv) (Procedure for raising objections will be as given in (i) of POO 992 dtd. 31.3.73 and POO 993of 17.4.73) Secret POO No. 1096 of 20.6.84 POO1096 of 20.6.84 AAuO AAuO AAuO **Appendix-Programme of Audit to Memorandum of Instructions regarding Extent of Audit(Railway Audit)(Second Edition 1983)-as amended from time to time. Central Audit –IV(5),(6)*(a)&(8b)(Vouchers relating to NGOs’ only ) Central Audit IV (13)(NGOs only) CAIV(20),(21), 24(NGOs only) 30(b) (NGOs only ) Stores Audit I(4),V(3) Workshop Audit XVI,XIX(3) Local Traffic Audit-Coaching/GoodsII,XX(renumbered as XIX/P.55),XXI, XXII(j),(i)&(ii), XXII(L),General (b),(c),(d),&(f) Note.(1) In respect of any items (mentioned above) Originally audited by AAuO or SO(A) during the month, Current Review selections will be made by the Branch Officer . (2) Selection of vouchers/documents for “Post Review” in any case will be done by the Branch Officer only. @These powers have been delegated to AAuO in terms of the provisions contained in Secret Memorandum of Instruction regarding the Extent of Audit (Civil) Second Edition 1971viz. paragraph (6) read with Note 1 under paragraph (4) and para(3). Note-Supervisors, working against the posts of SOs (in terms of the provisions of para53-RAM and para 298 (b) MSO(Admn)Vol.I 1969)will exercise powers mentioned in Column(3) to the extent the same have been delegated to SO(A) as shown in column(4). Office Manual 267 ANNEXURE-5 (Para-58) A DAK REGISTER (code word A DAK A Dak register should be maintained by Central receipt section for the office as a whole. Separate register should be maintained by the Auditing sections in detail in respect of letters received by them. Central Register This will have the following columns: Date of receipt Sr.No 1. 2. Letter no.& Date 3. From whom received 4. Subject in brief 5. Section to which given 6. The register maintained in sections will have the following columns Sr. no. Letter no.& Date From whom received 1. 2. 3. Subject 4. Remarks File no.& Section Dated initial of Officer’s complation no. initial Ar. receiving the letter 5. 6. 7. 8. This register should be written up by Central receipt section. Principal Director of Audit, Central Railway 268 ANNEXURE-6 (Para 58) ‘B’ AND ‘C’ Dak Register This should be maintained by Auditing Sections in the same from as prescribed for ‘A’ Dak register and should be used for two years. As regards submission of arrears report of outstanding letters under ‘A’ dak ‘B’ dak ‘C’ dak to Branch Officers /Pr.Director of Audit the following procedure should be observed. The register should be put up every Monday indicating the letters outstanding on previous Saturday with reference to the period allowed for disposal i.e. one week for ‘A’/ ‘B’ dak ‘C’ dak of divisions and outstation section and two weeks for ‘C’ dak of Headquarters section. The arrears report to be sent to COR section by the 10th of every month will be in the following form. Office of the Pr. Director of Audit, Central Railway, Mumbai CST ‘A’ ‘B’ ‘C’ Dak Arrears List of divisions /sections of the Office of the Pr. Director of Audit, Central Railway, Mumbai CST. Numbers a. Number of letters outstanding at the end of the previous month b. Number of letters received during the month of report Total c. Number of letters disposed of finally during the month d. Balance outstanding at the end of the month no. of letters outstanding Remark nos. over one week one month two months* *full particulars of letters outstanding over a month or more Note- (divisions and sections at outstation should indicate full particulars of letters outstanding over a week where headquarters sections have called for information etc. against CAG’s letters) Sr.no Office Manual Receipt no.& date No.& date of When letters received 269 Subject Explanation for delay ANNEXURE-7 (Para 71) Sr. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Description of Records Period of Preservation complete Account Years 1. REGISTERS Register of Railway Board’s Sanctions Register of General Manager’s Sanctions Register of HOD’s Sanctions Register of Reminders` Register of recoveries at the instance of Audit Register of review of contracts Register of common defects noticed in Administrative Offices Register of review of accounts Office work Register of original audit by GOs/Sr. Auditors Register of cases for possible inclusion in Audit Report Register of Factual statements and draft paras Register of Railway Board’s Dak summary Register of progress of inspections Register of important cases Register of review of productivity of outlay Register of points to be seen at inspections Register of sanctioned strength (Admn. section) Audit expenditure Register (Admn) Cash receipt remittances Register 20 years 20 years 20 years 2 years 3 years 5 years 2 years 3 years 3 years 2 years 10year 3 year for COR 2 years for others 6 years 5 years Permanent Permanent Permanent 5 years 5 years after the close of the financial year concerned 5 years Permanent Permanent 3 years 2 years Register of liabilities Register of Typewriters Hindi roster Register of SOO’s Stationery Account register II. FILES etc. Requisition for vouchers 5 years Dak slips 2 years Inspection programme file 3 years Man hours statistics (except orders proposed) 2 years Setting up of Benevolent Fund Admn. section Permanent others 5 years Review of Court cases 3 years Monthly statistics of repairs to locomotives, 5 years carriages & wagons etc. (Published by the Railway Board) Annual statistics of repairs to Locomotives 5 years carriages, wagons etc. (Published by the Railway Board) Review of published statistics of Railways file 5 years regarding File regarding wagon Building Programme 20 years (sanctions by the Railway Board) File regarding Power cost Statement 3 years Principal Director of Audit, Central Railway 270 in 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. File regarding arbitration awards 10 years File regarding divisions of rolling stock Permanent between India and Pakistan File regarding introduction of uniform cost Permanent accounting in Railway Workshops (Sarkar’s Report) Rolling stock statements of ex. B.L. Railway Permanent Incentive Scheme Papers etc. 10 years Material for all India Civil List 1 year Annual Return regarding deputation 3 years after the deputation return to parent office Central Railway Monthly Gazettes 2 years Papers relating to the GOs meeting COR 5 years others 2 years Petty works programme 10 years Quarterly/Half yearly progress reports of 2 years major works received from the Admn. & similar statement Return to COR & BB sections 3 years for CPR/BB,2 years for others A Dak & B Dak Arrears lists 2 years Correspondence with N.Rly/W. Rly Audit 3 years after the case is closed. Office (EHQ section) Statistics of volume of work done 3 years Papers relating to certification of eligibility of 2 years leave to GOs of the A/cs.Deptt. and check of their service statements. Copies of quarterly printed listed of Gazetted 5 years establishment received from the Railway Administration Report on the check of LPR cases 3 years Papers relating to review of Foreign Service 2 years contribution Monthly lists of Tenders 2 years A.T.s received from COS 2 years Copies of Auction sale orders 2 years Copies of tenders placed by the Railway 3 years Board Survey Board Reports 3 years The files dealing with HOD’s meeting 2 years Files containing some correspondence on one 3 years after final closure of the or more of he items mentioned in the minutes file. of the HOD’s meeting and these under correspondence with Railway Admn. Cases entered in the Register of external 5 years after final disposal. correspondence i. Important issues raised through ROC ii. Unimportant issues raised through ROC 2 years after final disposal Note.(1) subsidiary selection registers are being maintained by sections in some cases viz. for IVs, Stores bills etc. The period of preservation of these should be the same as for selection Office Manual 271 registers. Similarly papers on which selection is taken separately in some cases should be preserved for the same period. Note(2) It has been clearly laid down in Appendix I of RAM that the period of preservation should be in terms of Complete accounts years’. Thus, for example, In case of Test Audit Note Part, II (where period of preservation had been prescribed 2 years after disposal), was closed say on 7.10.61 the file would not be due for destruction on 7.10.63 but only after 1.4.64. (Ref-Au/HA/152 of 10.3.65) Principal Director of Audit, Central Railway 272 ANNEXURE-8 (Para 100(4)) A. 1. 2. 3. 4. 5. Syllabus for Paper I of the Revenue audit Examination for Section Officers-other than Civil Income Tax (Common to all Branches) Income Tax Act, 1961 Revenue Audit Manual Part I, Section I Revenue Audit Manual Part I, Section II Income Tax Rules, 1962 Finance Act of the year Syllabus for Paper II of the Revenue Audit Examination for Section Officers-Railway Audit Branch Sr. No Name of Books Syllabus 1. a. Indian Railway Code for Traffic Department (Commercia) b. Indian Railway Commercial Manual Volume I and II 2 .Indian Railway Code for the Accounts Department Part II Traffic Accounts 3. Indian Railway Conference Association, Coaching Tariff 4. Indian Railway Conference Association Goods Tariff 5. Indian Railway Conference Association, Military Tariff 6. Indian Railway Conference Association, Red Tariff 7. Conference Rules, Part II 8. Railway Audit Manual 9. Manual of statistical instructions Volume I 10. Indian Railways Act-Chapters III, V, VI and VII 11. Indian Railway General Code Volumes I and II Note (1) In respect of books referred to at items(3) to (6) the publications in force as on 1st of April preceding the examination will be the prescribed text books 2) Candidates are expected to be aware of computer accounting of traffic transactions 3) The question paper will have emphasis on practical application of Railway Tariff and Rules. Books exception for those mentioned at (9) and (10) above are allowed for the examination. A. Statement of Candidates for Revenue Audit Examination for Section Officers (--------------------------------Branch) to be held in -------------------------------------Sr. Name of the Date of Year of passing SAS Name of Examination No candidate Birth Examination at which already appeared. Year Index No 1 2 3 4(a) 4(b) 5 Year in which Subjects(in which already appeared already exempted, the at the marks secured, the year Examination and of examination in which exemption was Index No. then the allotted secured and the index No. then allotted. Office Manual 273 Year Index No 6(a) 6(b) 7 (CAG’s letter no. 266-Exam/102-72 dtd.3.6.74) Principal Director of Audit, Central Railway 274 8 ANNEXURE-9 (Para 143&144) CHILDREN’S EDUCATIONAL ALLOWANCE 1. Certified that my child/children mentioned below in respect of whom children’s educational allowance is claimed is/are wholly dependent upon me and I compelled to send my child/children way from the place of my posting/residence due to non-availability of the school of the requisite standard at the station of my posting /residence or due to nonavailability of a vacancy in such a school at the station of my posting/residence. Name of the child Date of Birth School/college in which studying locations thereof and residence of the child The Place Class in where the which Government studying servant is residing Monthly educational allowance admissible 1. 2 3 4 6 5 Amount allowance claimed for the period from--199to --199… 7 2. Certified that my child/children in respect of whom Children’s educational allowance is claimed is /are studying in the schools mentioned in column(2) which is/are recognized school(s)( Not applicable to school run by Central Government /State Government /Union Territory Administration/Municipal Corporation/Municipal Committees panchayat Samiti/Zilla Parishad). 3 Certified that: i. my wife/husband is /is not a Central Government servant ii. my wife/husband is a Central Government servant and that she/he will not a claim children’s educational allowance in respect of our child/children. iii. my wife/husband is employed with …………………… She/he is/is not entitled to children’s educational allowance in respect of our child/children. 4. Certified that during the period covered by the claim the child/children attended the school regularly and did not absent himself/herself/themselves from the school without proper leave for a period exceeding one month. 5. Certified that the child/children has/have not been studying in the same class for more than two academic years. 6. In the event of any change in the particulars given above which affect my eligibility for children’s educational allowance, I undertake to intimate the same promptly and also to refund excess, payments if any made. (Signature of the Govt.Servant) Name in block letters Designation & Office Office Manual 275 Date…………………. Place……………………. of posting (Strike out whatever is not applicable) employer other than Central Government to e mentioned) Principal Director of Audit, Central Railway 276 ANNEXURE-10 (Para 143& 144) Hostel Subsidy 1. Certified that my child Shri/kumari ………………………………….is studying in …………………………………………….(Name of the school) was admitted to Hostel of the school on ………………………………………19………….(certificate from the Head of the school attached). 2. Certified that : a. My wife/husband is /is not in Government service is /is not drawing Hostel subsidy in respect of my child/children b. the total number of children in respect of whom the hostel subsidy and children’s educational allowance have been claimed does not exceed two. 3. I undertake to inform my employer forthwith in the event of my withdrawing the child from the period and also in the event of there being any change in the particulars mentioned earlier. (Signature of the Govt. servant ) Name in block letters…………. Desgn.& Office…………….. Dated: (Ministry of Personnel, Public Grievance and Pensions letter no. 21011/21/88 Est (Allownaces) slated 17.10.88 received under CAG’s letter no. 1029-AuditI/80.1/87(15)dated 5.12.88). Office Manual 277 ANNEXURE-11 (Para 143&144) Hostel Subsidy ……………….school…. (Name of the school and places) 1. 2. 3. 4. 5. Name of boarder…………………………… Name of parent ………………………………… Class to which admitted………………………….. Date of admission in the hostel……………………………. Period during the year for which the child would continue to stay in the hostel………………………………………………. From To a. b. c. d. Dated………… Principal/Head Master/Head Mistress (Stamp of the school) Principal Director of Audit, Central Railway 278 ANNEXURE-12 (Para 145(2)) Monthly statement of Amount of overtime paid. Personal staff Others Ministers 1. 2. Staff Drivers Others 3. 4. ANNEXURE-13 (Para 145(4)) OVERTIME REGISTER Sr.No Name 1. 2. Hours of overtime work performed by the Govt. Servant 6. Designation of the Govt.servant required to perform overtime work 3. Nature of work performed during overtime hours 7. Why the work could not be performed during the prescribed hours of work 8. Emoluments Hours of overtime work authorized by the competent authority 4. 5. Amount of overtime paid 9. Initials of competent Authority 10. (15011/2/EII(B)/76 dtd. 1.8.76 received under CAG’s no.916-Audit 157(36) dated 14.9.76). Office Manual 279 ANNEXURE-14 (Para 145(4)) CERTIFICATE Certified that the Government Servant /Government Servant in whose case the overtime allowance has been claimed in this bill was/were required under specific orders to sit late in the office after having put in work during prescribed hours on …………………………………..attend office on………………………Sunday/holiday for disposal of urgent work which, in public interest, could not be postponed till the next working day. Certified that the amount claimed in this bill is in accordance with the rates specified in Paragraph 7 of the Government of India, Ministry of Finance (Department of Expenditure)’s office Memorandum no. 15011/2/E II9B/71 dated 11.8.76 and is according to the principles laid down therein and does not exceed the ceilings, on overtime earnings prescribed in those orders/necessary certificates having been obtained from the Officers concerned for payment of overtimes allowance to the ‘Personal staff’ in excess of the prescribed ceiling. Also certified that the Government servant(s) concerned did not received any other remuneration/ conveyance charge or compensatory leave for the performance of that overtime work. Signature of Drawing Officer Principal Director of Audit, Central Railway 280 ANNEXURE-15 (Para 187&216) Section/Division Progress Report for the month of…………… Part I (in terms of Man days)* Arrears at Arrears at the end of Total Arrears the end of Current month (Col.4+5) previous month (man days) From Fresh those arrears for relating to the current Col.3 month Sr.No Category 1. 1. 2. 3. Arrears due to arrears in accounts Office 2. Arrears due to nonavailability of Vouchers Arrears in Audit 3. 4. 4. 4. Arrears in i. by GO ii. O,A by SO iii. PR by GO PR by GO Part I 1.Change in audit procedure on account of mechanization Nil*/Attached separately 2. Delays/Arrears in submission of returns Nil*/Attached separately No…………. Date…………….. *P.O.O. 1044 of 26.10.77 Branch Officer Office Manual 281 5. Brief remark on the arrears 6. ANNEXURE-16 (Para 216) Arrears (in terms of man days) in the Railway Audit offices for the quarter ending Functional Group Arrear Increase(+ at the ) end of Decrease (-) Arrear Arrear Arrear Increase at the at the of the (+) end of end of end of Decreas e (-) 1.General Divisional Audit 2.Stores Audit 3.workshopAudit 4.Catering Audit 5.Traffic Audit 6. Construction Audit 7. Metropolitan Transport Audit Full name and no abbreviation to be given Principal Director of Audit, Central Railway 282 Arrear Arrear Increase at the at the (+) end of end of Decreas e (-) Arrear Arrear Increase(+ at the at the ) end of end of Decrease() Remarks ANNEXURE-16 Form II Brief Resume of the more important item of arrears Name of the Category of Items functional of arrears group/subwhether the arrears functional arrear are due group to (arrears in A/cs or arrears are due to nonavailability of vouchers or the arrears exist in Audit Office proper) 1.General Divl. Audit 2.Stores Audit 3.Workshop Audit 4.Catering Audit 5.Traffic Audit 6.Construction Audit 7.Metropolitan Office Manual Arrears(Col.3) expressed in terms of man days Expenditure Establishment Inspection Expenditure Establishment Inspection Central Audit Inspection Central Audit Inspection Transport Audit 283 Period to which the arrears relate Detailed reasons for the existence of arrears Steps taken or proposed to be taken for clearance of arrears in case of chronic arrears it may be specifically stated whether the matter is required to be taken up with the Railway Board Date by which the arrears are likely to be cleared (in this column specific date is to be indicated). ANNEXURE-16 Form III Statement showing the outstanding letters received from CAG/ADAI(Rlys) upto the period ending ……. Part I Sr.no Part II Sr.no Letters outstanding for over 6 months Letter no and date Subject Brief reason for non Date by which disposal likely to be disposed of Letters outstanding for more than 2 years Letter no and date Principal Director of Audit, Central Railway Subject 284 Brief reason for non Date by which disposal likely to be disposed of ANNEXURE-17 (Para 188) Certified that to the best of my knowledge and belief the state of work in this section for Q.E…… was generally upto date and that the test audit and other work required to be completed by the end of the quarters were completed with the exception of the items (assessed in terms of man days) detailed in the statements enclosed . Audit Officer No………… Dated…………………….. Forwarded to Audit Officer(COR) Central Railway, Mumbai CST for information. Audit Officer ANNEXURE-18 (Para 215) Register of Important Results of Audit (Code Work-RA) 1. This Register should be maintained in the form given below. 2. This Register should be used for 2 years and preserved for 10 years. 3. The Register should be put up to the Pr. Director of Audit at the end of each quarter i.e. in April , July, October and January. 4. Interesting items for the Register are also sent to the CAG quarterly. Selection of paras for circulation to other Railway should be taken at the same time. INDEX Sr No Brief Particulars 1. 2. Section from Reference to Date of circulation Page No. which received Other sections Other Railways 3. 4. 5. 6. 5. As soon as paras are received from different sections these will be allotted an index number after obtaining Pr. Director of Audit’s approval and will be pasted in the Register and the Index Column filled up. Each copy of the Para pasted should have the full signature of the Pr. Director of Audit. Office Manual 285 ANNEXURE-19 (Para 222) Statistics of volume of work done in Railway Audit Offices Division Section Section 1 1. No. of Offices/Departments whose accounts are audited* 2. No. of Construction 3. No. of Inspection a. Total No. b. No. inspected i. Executive offices ii. Stations iii. Stores Depots iv. Workshops v. Others Section II 1. No. of letters i. Receipts ii. Issues 2. No. of estimates, checked in a year as per Railway Audit programme @ 3. Number of completion reports @ 4. i. No. of Pay bills G.Os ii. No. of T.A. bills G.Os iii.Other bills/Claims. 5. i. No. of pay bills N.G.Os ii. No. of T.A. bills N.G.Os iii. Other bills claims. 6. No. of contractors bills checked in a year 7. No. of pension cases, and Gratuity checked in a year. 8. Provident Fund Account i. No. of accounts checked in a year ii. No. of payments both final and temporary 9. No. of journal vouchers and adjustment mema 10. No. of other bills 11. No. of Reviews i. Suspense Registers ii. Allocation and Works Register iii. Exchange and Remittance Accounts iv. Others 12. No. of complied accounts checked. 13. 1. No. of station accounts. i. Local a. Coaching b. Goods c. T.T.E. Returns ii. Foreign a. Coaching b. Goods c. T.T.E. Returns iii. Refund lists and O/C sheets Principal Director of Audit, Central Railway 286 iv. Compensation claims II. Collected Passes 14.I. No. of stores vouchers including bill(i) Receipts(ii) Issues (iii) Priced ledgers II. (i) Manufacture Accounts (ii) Suspense Accounts 15. Workshop Accounts i. Work orders ii. Labour pay sheets iii. Stores Bills iv. Time sheets v. Bonus & Piece work bills vi. Job costing sheets *This should not include the number of stations whose accounts are audited. @ These need not be shown separately but shown along with contracts and completion reports as audit of estimates as an independent item has been dispensed with (vide Au COR I4-72-73,73-74,74-75) Note:-The statistics should provide information in two main columns as shown below: (1) (2) Previous Year Current year Figures as reported previously figures after Latest figures upto closing of the accounts including sub col(a) (CAG’s letter no. 1113-BRS/43-62/VI dtd. 13.6.1963 (Au COR 1-4 Orders) Office Manual 287 ANNEXURE-20 (Para 225) Material for Draft Para for the Railway Audit report on outstanding objection Inspection Reports Where Money Value is known. Proforma Year Test Audit Notes Year including special letters Inspection Report Pt. I No. Item Amount Where Money Value is not known Year Test Audit Notes Year Including special letters Inspection Report Pt.I No. (Au COR FS27-III 2087 dated 15.6.1976) Principal Director of Audit, Central Railway 288 Item Item ANNEXURE-21 (Para 236) Proforma for reporting recoveries at the instance of Audit Name of the Office Statement showing the particulars or recoveries effected at the instance of audit the year. (a)= A RESULT OF AUDIT OF TRANSACTIONS ALREACY CHECKED BY ACCOUNTS (b)= OTHERTHAN (a) Sr No SN./DN S 1 2 Total No of cases Pay & TA Cont. Bills Bills 3 4 Misc. Bills 5 Amount actually recovered or agreed to be recovered by Account Office Pay & TA Contractors Misc.Bills Bills Bills 9(a) 9(b) 10(a) 10(b) 11(a) 11(b) Amount pointed out by Audit for recovery Pay &TA Contractors Misc.Bills Bills Bills 6(a) 6(b) 7(a) 7(b) 8(a) 8(b ) Amount recovered as a result of further review by Accounts Pay &TA Contractors Misc.Bills Bills Bills 12 13 14 Note: : i. Cases should not be listed individually ii. Acceptance of the figures of recovery by Accounts Office should be obtained and communicated to COR quoting Accounts Officers letter no. and date of acceptance. iii. Traffic Audit section should show separate the No. of cases and amounts, undercharges and other than undercharges. iv. In cases where the total recoveries including the amounts recovered as a result of further review by Admn. in respect of Divn. Section is substantial , say more than Rs.50,000 details of the cases of recoveries should be given separately quoting reference to paras, if any, in the Register of Audit activities. (POO 908 and 985dtd. 20.3.67and 1.1.73 respectively) Office Manual 289 ANNEXURE-22 [Para 242(12)] Register of Draft Para Code Word Authority DP Para 572 RAM Record of submission Month of Date Submission SO AuO Pr. Director of Audit Remarks Index of Draft Para issued Month Sr.no . 1. 2. Final disposal Subject Page. Ref 3. 4. File no. & date of issue Dept.Concerned 5. 6. Dropped by Pr.Directed of Dropped by CAG Audit 1. 2. Provisional CAG 3. proposed by (Authority letter 22.5.89) Proforma B (Para 242) Progress report on the issue of Draft Paragraphs (exclude Review note) for the moth of ………… No. of Draft paragraph and Reviews outstanding (Authority; CAG’s(R) letter no. 289-RAI-RII-10/8 dtd. 22.5.87 and CS no. 142 dtd. 22.5.89) Principal Director of Audit, Central Railway 290 ANNEXURE-23 (Para 245) Register of Potential Draft Para Cases 1. Code Word RAP 2. Authority CAG’s letter no. 38-Codes. 8-61 dated 29.6.62 3. The Register should be maintained by Report section in the form prescribed. 4. All cases likely to develop into draft paras will be noted in this prescribed. 5. The Register should be put upto BOs/Pr.Director of Audit by the 10th of every month. 6. The Register should be used for 2 years and preserved for 5 years 7. The index should show the subject in brief. Contents 1. Index of Cases Page -do- 2. Record of submission -do- 3. Detailed particular of case -do- Index of Cases Sr. No. 1. Subject in brief 2. Page no. in the Register 3. Record of Submission Sr.No . Date of Summary submission of cases 1. 2. Office Manual 3. Dated initials of S.O. 4. Remarks B.O. 5. 291 PDA 6. 7. ANNEXURE-24 (Para 246) Items for special investigation and items for review of Railway’s Published Statistics by ECPA Section 1. Reports of various committees appointed by the Railway Board to investigate the working of Railways to be scrutinized to see how far the recommendation are given effect to. 2. Monthly domestic statistics-traffic Operating in that statistics about wagons& running of trains. 3. Monthly domestic statistics-Electrical/Mechanical Operating in that all statistics regarding Engine availability, usage, repairs etc. 4. Year Book 5. Indian Railway Annual Statistical Statements. 6. Monthly Appreciation Report (Goods) 7. Indian railway Annual report& Accounts 8. Suggestion to develop revenue 9. Comparison of expenditure on construction and maintenance on Central Railway with other Railways 10. Possibility of reducing expenditure particularly in establishment. 11. Scrutiny of hurry and misc purchases at high cost which might have been postponed and of expenditure incurred before schemes are finalized. 12. Examination of idle time and overtime with a view to eliminate of wasteful methods, out of date practices etc. 13. Review of the method of account9ing costing and disposal of scrap material in workshop and stores. Cost of special repairs/POH per standard unit of repairs, in workshops. Repairs and maintenance costs of rolling stock per engine km/coaching vehicle/wagons on line 14. Scrutiny of time honoured and long standing practices and payments which are out of tune with the present day conditions. 15. Examination of the extent to which departmental work is utilized in the works of the Railways and whether due consideration is given to the comparative costs and feasibility of departmental and contract works in all possible cases. Principal Director of Audit, Central Railway 292 ANNEXURE-25 [Para 260(3)] Illustrative list of subject to be reviewed during intensified inspections. I. Civil Engineering Branch 1. Contracts for Earthwork-unrealistic assessment of work, disposal of cutting spoils, measurement 2. Balances of material at site. 3. Augmentation of line capacity. II. Mechanical Branch 1. Cost of repairs of engines and wagons. 2. Efficiency in use of costly machines. 3. Study of incentive scheme. 4. Expansion of workshops. III. Operating Branch 1. Remodelling of Marshalling yards and transshipment sheds utilization of rolling stock, turnaround of wagons shunting operations etc. 2. Railway Accidents Reports IV Stores Branch 1. Identing and purchase of stores-avoidable or excess indenting. 2. Rejected stores and defective supplies. V. Electrical Branch 1. Arrangement for purchase and distribution of power. 2. Repairs and maintenance of EMU stock. VI. Signal and Telecommunication Branch. 1. Development in pattern of signaling. VII. Personnel Branch 1. Staff strength commensurate with work-excess operations. VIII. General 1. Expenditure on printing and stationery. Any other item marked by the Branch Officers concerned may also be reviewed in addition to above items. Office Manual 293 ANNEXURE-26 [Para 376(8)] Register of review of contracts (Code RRC) 1. This register should be maintained in the form given below. 2. Thee register should be put up to the BO and Pr. Director of audit quarterly on 10th of April , July, October and January. 3. The register should be used for two financial years and preserved for five years thereafter. Record of submission Quarter Ending 1 Date of Page reference to SO/AAU submission the items O reviewed 2. 3. 4. BO Pr.Director of Audit 5. 6. 5.An abstract in the following proforma should be given separately in the register as indicated below: ABSTRACT From Sr.No…………… To.Sr.No…………....... 1.Item reviewed for Q.E. 2. Item where lower tender has not been accepted. 3. Items where notes have been put up for orders. A. .Balance B/F no B. Additions for the quarter no. C. Final orders No. obtained D. Balance C/F no. (Sr.nos.) (Sr.nos…………………….) (Sr.nos……………………..) (Sr.nos……………………..) (POO’s 678, 699 dtd. 29.12.58 and dated 21.8.59 respectively) (POO 832 dtd. 26.7.63) FORM Sr. Nature Estimated Records Names of No. of Cost reviewed all work contractors upto the accepted tenders (letter to be indicated) Value of Tender in each case Reasons for nonacceptance of lowest tender 1. 6. 7. 2. 3. 4. Principal Director of Audit, Central Railway 5. 294 Audit remarks (comments on incidental matters like adequacy of completion justification of single tender etc) 8. Initials of reviewing Officer 9. ANNEXURE -27 [Paras 377(8)] Register of Review of Implementation of Contracts CODE WORD RIC The register should be maintained in the following form Sr. No H.Y. ending Contract agreement No. & date Name of the contractor firm 1. 3. 4. 2. Special features if any 9. Office Manual Name of the work Particulars of materials supplied 5. Value of Date of the commencement contract completion of contract Au6 No. & date of final bill 6. 8. 7. Remarks of the re- Date and initials of Section reviewing section officer/ Officer/ Branch Officer branch officer 10. 11. 295 ANNEXURE-28 (Para 384) Register for Review of the Productivity Tests Done by the Administration Performa for XHQ and W&S Parel Sections Sr. No. Name of the work due to reviewed automaticall y or selected by Railway Board’s or GM’s sanction Date of physical completio n of the work Principal Director of Audit, Central Railway Date on which the productivit y test is due to be completed 296 Date of complet ion of the test and submiss ion of the reports to the GM/ Railway Board Date on which audit review is complet ed Referen ce to Audit comme nts if any (Give the File Number ) Attestatio n by GO Remarks ANNEXURE -29 (Para 404) Sr. No 1. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. Name of the Depot Audit Section 2. 3. General Stores and Electrical Signaling AuO (W&S) PR components Depot and cloth cutting factory at currey Road. Scrap stores Dept at Haji Bunder AuO (W&S) MTN Stationery, Books and Forms Stores Depot and AuO (W&S) PR Printing Press at Byculla Engineering Workshop Stores Depot and Scrap DAuO BSL Depot Permanent Way Stores Depot at Ajni Permanent Way Stores Depot at Solapur Steam and Diesel locomotive Stores Depot and Non-ferrous Scrap Depot at Parel. Traction Motor Winding Workshop Stores Depot at Nasik Road Carriage, wagon and Electrical Stores Depot at Matunga. Tank Wagon sub-depot at Kurla. EMU Stores Shed Depot at Vidya Vihar EMU Stores Shed Depot at Kalva. D.C. Electric Locomotive shed Stores at kalyan Carriage , wagon, Electrical and General Stores Depot at jhansi. Narrow Guage Stores Depot at Gwalior. Narrow Gauge Stores Depot at Dhaulpur Electric Loco Stores Depot at Jhansi for Catering the demands of Electric Loco shed at Jhansi and A.C. Locos spares at Gwalior . Rail Spring Factory stores Depot at Sithouli Gwalior. Carriage Repair Workshop Depot at Nishatpura, Bhopal. Stores Depot Coach repair Workshop/ NSZ (Bhopal) Stores Depot RSK/Sithouli(Gwalior) A.C. Electric Locomotive stores shed Depot for maintenance and POH for AC Electric Loco Workshop at Bhusaval. Mechanical Signaling Stores Depot at Bhusaval. Diesel Locomotive Shed Stores Depot at Kurla. Narrow Gauge Stores Depot at Kurduwadi Diesel Locomotives shed Stores Depot at Pune Diesel Locomotives Shed Stores Depot at Itarsi Diesel Locomotives Shed Stores Depot at New Katni junction. Office Manual 297 DAuO NGP DAuO SUR AuO(W&S)PR W&S, Parel W&S, Matunga -do-do-do-do-do-do-do-do- -doAuO/W&S/ BPL -do-doPOH Bhusaval -doDAuO Mumbai CST DAuO Solapur. Audit Office (C) Pune DAuO Bhopal. DAuO Jabalpur. 29. 30. 31. 32. 33 . Engineering Permanent Way Stores Depot at DAuO Jabalpur. Jabalpur. Diesel Locomotive Shed Stores Depot at Jhansi DAuO Jhansi. Diesel Locomotive Shed Stores Depot at Agra -doDSS-Kalyan (P&NP) DAuO Mumbai. Stores Depot-Bhandup -do- Principal Director of Audit, Central Railway 298 ANNEXURE-30 (Para 468) Items to be seen during local inspection of shops. 1. Gate Passes. 2. Time sheets. 3. Attendance Register and overtime register 4. The system of preparing M/ Rolls for coolies for whom no time sheets are prepared. 5. duty certificates of labourers temporarily engaged out of shop. 6. the system of allocating labour to a particular work order. 7. the system of accountal of store. 8. Stores charged off to works. 9. Accounts fo stores spared form works. 10. Accountal of Dead-stock. 11. Accounts of consumable store. 12. Scrap accounts and the arrangement s for the weighment of scrap returned to stores. 13. Work order register. 14. Clothing accounts including water proof equipment and cumblies. 15. Tools and plants register. 16. Accounts of Railways tools issued to private parties. 17. Check of sanctioned strength with the actual strength. 18. Arrangements for shift duty for labourstaff. 19. Misc. cash –accountal there of. 20. Pay orders. 21. Card passes, residential card passes. 22. Passes and PTOs. 23. D.S.Ss and returned stores.24. 24. Coal, coke and oil accounts. 25. Accountal of material issued on loan. 26. Check of Ticket Board. 27. Actual count of labour, wit Time sheets (to be seen whether men are actually working on the jobs marked on the T/sheets. ) 28. Machinery and Plant lying surplus. 29. Motor lorry accounts, if any. 30. Tally cards(maximum and minimum ) 31. Service cards including comparison or rate of pay with Muster Roll. 32. Leave Accounts. 33. Review of incentive scheme. 34. Installation on and utilization of US surplus machines. 35. Bills relating to the reimbursement of tuition fees in respect of children ofrailway employees pertaining to one quarter. 36. Reconciliation of the time sheet with M/ rolls should be test checked ad large differences taken up. 37. System of payment of wages etc. to labourers including the witnessing of payments during the period of inspection. 38. Systems of sending out material from shops. 39. System of sending out material from shops. 40. System of shop delivery notes etc. for articles manufactured for other shops, and intershop transfers notes of stores. 41. Measurement Boods. 42. Cupola Books or other initial records of manufacture. 43. Does the unit cost of manufacture of similar articles at different times vary considerably? If so are the factories contributing to the variation suitably investigated and defects rectified. Office Manual 299 44. Recovery of non-ferrous turning/borings from the shop floor. Principal Director of Audit, Central Railway 300 ANNEXURE-31 [Para 534(8)] List of items to be checked during stations inspections. PARCEL TRAFFIC 1. Count of cash of parcels luggage, telegraph etc, on hand at the time of Inspection. 2. Closing of all books in use by date of inspection and agreeing the cash onhand with books. 3. Marking outstanding items in the L.B. 4. Taking inventory of all parcels on hand (old and current) and connecting them with the outstanding in the L.B. and reporting cases of parcels lying on hand unconnected and unclaimed. 5. Check of paid outward way bills in detail in parcels CB and LTC for the broken period. In addition test check of some its for the closed period. 6. A few to pay and paid way bill should be checked to see that they have been correctly prepared, risk not held have been shown on O.W.B. weights as per C/notes have been correctly entered on the P.W.Bs. 7. Verify totals of inward to pay traffic and undercharges in the L.Books. While doing so, pick up the items outstanding in a lump after verification with the list of Parcels on hand. 8. Special credits such as paid, on traffic on credit notes etc. should be berified. 9. Check L.B. with C.B. for not less than 4 days, since the submission of last B/sheet and in addition all items during the period of compilation of test balance sheet. 10. Check some collected receipts with the LB and CB in order to verify the amount, dates and delivery and remittance. 11. Test/B/sheets prepared test balance sheet for broken period in respect of parcels traffic and c/sheet account. 12. Examine the CB back X to last inspection for erasures, alterations etc. Totals to be checked at random for 3 days. 13. Cash Book-Compare totals of parcels CB with DTBC for the broken periods and test audit for the closed period. 14. CB notes,check remittance for current month and one complete month since the last inspection and see also that acknowledgements from then cashier have been received and passed to counterfoils. 15. Check of closed months balance sheet with reference to initial records at the station. 16. Loading Books: Check not less than 20 items with way bills to see that packages have been correctly dispatched. 17. Unloading Book: Check not less than 20 items with the LB to see that dates of unloading have been correctly shown in the LB. 18. Wagon exchange book: Check not less than 20 outward and inward item. 19. Wharfage: Check accuracy of wharfage collected for the broken period and also for previous months from the date last inspection if it is earlier. 20. Test weighment of 5 outward and 5 inward parcels on hand. 21. check of outstanding items: a. Freight outstanding b. Admitted debits outstanding debits outstanding c. Not admitted See that the outstandings are genuine and prompt action has been taken for their clearance. Report cases outstanding over six months for necessary action by the admn. 22. Advice of account: See if these are promptly received from the Accounts office and that E sheets received are taken to account by the Station. Office Manual 301 23. Examine (1) Register of misdeclaration of parcels (2) Register of reweighments and (3) Register of unclaimed and excess articles lying at station. 24. Transmit mema, these should be checked to see that returns and vouchers are sent in proper time. 25. Examine, whether tariffs and other books of reference intended to be used by the staff in their daily work are kept corrected upto date. 26. Scrutiny of claims settled by Sms with reference to initial records at the station and also to see whether Railway receipts are stamped and endorsed with reference to pay orders issued and connected entries in the DB are referenced off. 27. Auction sale account. 28. Unaccounted for way bills. 29. Wagon registration fees. 30. Review of Register of Plots 31. Handling bills. List of items to be checked during station inspection coaching traffic (other than Parcels Passenger traffic) 1. Count of cash: Cash on and to be counted and agreed with the sale of ticket upto the time of inspection as per DTCB and verification of vouchers, PTSs jail requisition Military voucher forms. Cash with ASMs SM should also be checked. 2. Scrutiny of imprest cash and stamp account of stamps received and sold. 3. Verification of lowest Nos. tube and paper ticket books with the closing nos. in the DTCB and pass class on hand. 4. Marking of last ticket issued from paper ticket luggage, receipt books etc. 5. Inventory of luggage and left luggage on hand (same as parcel) 6. Check of ticket requisition (indent books) to see that tickest supplied have been correctly entered in the ticket stock register and that tickets supplied have been correctly entered in the ticket stock register and that tickets are not issued (taken in the tube for issue) out of consecutive order. 7. Counting of tickets on hand with reference to indents supplied LC tickets on hand are to counted in details for about 5 stations in each category and printed tickets for 5 station under each class. 8. It should be examined that there is not such surplus stock of tickets with the station. 9. Check of fares over ticket tubes. 10. Cleanliness of tickets in the ticket tube. 11. Dating press: to see if it is order and gives clear impression of dates and that is has been tested regularly by the inspector. 12. To see that correct fares in force and exhibited near the booking office for the information of the public. 13. To see that manuscript alterations on printed tickets are made wherever fares are changed before the tickets are kept in the tube and issued to the public. 14. Check of entries in the ticket stock book with those in the DTCB and also to see that all stock of tickets supplied has been entered in the summary of DTBC(i.e.pass class) irrespective of the fact that there are sales of tickets or not. 15. Check of luggage, HC dogs, cloak room, ,motor tickets intocash book and cash book into DTCB 0% check of pass tickets shown in luggage tickets with DTCB. 16. Check of tickets sold during the during the broken period of the inspection. In addition, check of totals of 3 dates (to be selected) in the three periods of different months from the date of last inspection. 17. Check of credit voucher books for non-issued ticket(local and foreign) 18. Check and accountal of : i. Blank paper tickets ii. Soldier ticket books Principal Director of Audit, Central Railway 302 iii. Return journey vouchers iv. Excess fare v. Platform and reservation tickets vi. Telegraph receipts vii. Badges and vendors tickets viii. Lavatory and bath tickets ix. Retiring room tickets 19. Scrutiny of registers of Bc tickets (local and foreign) 20. Check and accountal of season ticket traffic 21. Check of DTCB and summary with reference to respective books and checking of totals for the broken period of the inspection. 22. Check of totals of DTCB with CRnotes for the broken period and for one month of the closed period. 23. See that acknowledgements from the cashier are received and posted to the counterfoils. 24. Verification of indemnity bonds on hand. See that account of bonds received and sold is correct. 25. Check of money receipt and tracing into DTCB to see that receipts given for the amounts are correct. It may also be seen that money receipts are given for clerkage and 10 percent commission received from the public for the tickets surrendered by them. 26.Check of closed months B/sheets with reference to initial records at the station. 27. Check of time tables, guides and tariffs, to see that the account of these publicatio received and sold is correct. 28. See that advices of internal check are received and the B/sheets received have been taken to account. 29.Scrutiny of sundry receipts: See that moneys due from stall fruit stall and platform vendors are collected and remitted on due dates as per advices received from time to time. 30 Scrutiny of accounts of services postage stamps plant, stationery and formsclothing and consumable stores etc, 31. Check of register of books numbered books (money value books) with reference to indents compiled with. See that books issued are acknowledged and the date of completed books are recorded and that the books on and are correct. 32. Transmit mema of vouchers and returns: See that all vouchers and returns are sent out on due dates. 33. Check of medical authority books with advice to see that all receipts portions duly counter signed by the medical authorities are received and pasted to counterfoils. 34. Scrutiny of registers of advertisement posters. To see that entries in the register are made as per lists, furnished by the publicity officer. Inventory of posters exhibited should be taken and compared with the register to see that time expired posters are duly removed. 35. Check of To returns to see that no. of missing tickets, particularly for short distances stations is not heavy, there is no reuse of tickets and that time expired tickets are found in collections. 36. See that junction returns are submitted by stations for local and through BC tickets. 37. Scrutiny of charge sheet book. 38. Arrangement for prevention of ticketless travel: see that the compounds are properly fenced, exits are guard there are sufficient staff of TCs surprise check of TTIs and GOs is regularly conducted or not and that suitable record of surprise checks conducted is kept at the station. 39. Scrutiny of arrangements; Office Manual 303 1. For custody of cash and 2.remittance of cash. To see that adequate safeguards are taken to carry the cash to the treasury if the cash is not sent to the cashier through traveling safes. It may be seen that there was not avoidable delay in the transmission of cash to the treasury or the chief Cashier. 40. Test check some items of work done by the inspector of Station Accounts by taking his latest report received in the accounts office. 41. TC reports., 42. Reports of Inspecting officers-Review of. List of items to be checked during station inspection (Goods Traffic) 1. Counting of cash of outward ‘paid’ and inward ‘to pay’ on hand at the time of inspection (including cash with ASM/SM. 2. To see that all inward invoices received are posted in the DB. 3. Marking outstanding items in the DB. 4. Taking inventory of goods on hand (old and courrent packages) 5. Connecting goods on hand with outstanding entries in the DB and report cases of goods lying on hand unconnected and unclaimed. 6. Comparison of outward Paid amounts from record portions of invoices into cash books. 7. Check of totals of goods cash books for broken period and certain dates from the closed books. 8. Scrutiny of live stock books and Railway materials traffic which is charged at public tariff rates. 9. Check of Railway/receipt for 4 dates and tracing them into DTCB (Daily Trains cash book) 10. Check of DB Totals for broken period. 11. Check of cash from books into CP Notes for the broken periods and check of amounts acknowledged by the cashier of Cp. Notes for the broken period and one month for the previous month into the B/sheets of the station and also to see that acknowledgements from the cashier are received and pasted to counterfoils. 12. Check of outstanding of closed months and comments on outstandings over six months old. 13. Prepare test balance sheet for the broken period. 1. For goods inward trancsactions 2. E/sheet account 14. See that advices of account are regularly received and the E/sheet received have been taken to account by the station. 15. Check of indemnity register (account and sale). 16. Scrutiny of money receipt books with reference to the amounts remitted in CB. 17. Check of closed months E/sheet with reference to the initial records at the station. 18. Check of old outstandings, to pay freight’ debits remitted and no admitted with a view to see they are genuine and that action has been taken to clear them. 19. Invoice books and consignments notes: To examine at least some percentage to see that invoices are correctly prepared, promptly issued, references risk notes held etc.are given. 20 Retailed weights on consignments notes should be examined to see that correct weights are shown on invoices. 21 Check of loading books and guard’s signature books for transshipped packages with Record invoices. 22. Check loading book with wagon exchange book guard’s signature book for wagons dispatched. 23. Check of unloading and wagon exchange books with delivery books to see that dates of unloading are correctly, recorded in the DB. 24. Check of Gate Pass Book and Gate Pass Register to see that packages delivered are correctly removed on the date of delivery. Principal Director of Audit, Central Railway 304 25. Check of wharfage and demurrage for broken periods as well as for previous months or from the date of last inspection if it is earlier. 26. Scrutiny of following if properly maintained (a) C/note register (b) Index register (c) Register of weekly inventory, (d) register of sender’s weight accepted (e) Register of reweighments (f) Register of excess and unclaimed goods (g) Register, (h) Sweeping i.register of misdeclared consignments. 27. Scrutiny of quick turn round, register with a view to see that wagons are not detained in goods shed beyond free time allowed and that they are also not detained in the yard unnecessary. 28 Scrutiny of weighing machines and weighbridges to see that they correct weights and that scales are tested by the inspector periodically. 29. Scrutiny of Transmit mema of returns and vouchers to see that all returns and vouchers are submitted on due dates. 30. Scrutiny of crane and hire statement. 31. Check of book numbered books (money value books) with a view to see that they are entered in the register as per indents complied with, they are signed for when issued, dates of completed books are marked and that the books to be on hand are correct. 32. Check of free service book to see that nothing other than required are dispatched free. 33. Scrutiny of siding register with reference to wagon exchange book showing movements of wagons from and into sidings and whether which are open are included in the Tariff and siding statements are prepared for all sidings. 34. Scrutiny of books references, tariffs, etc. to see that they kept upto date as per rate circulars received. 35. Scrutiny of claims settled by SMs (upto RS. 100) to be reviewed with the initial records there and to see whether Railway receipts are stamped and endorsed with references to pay orders issued and connected, entries in the DB are referenced off as to payments made for shortage damage or loss of entire consignments. 36. Wagon Registration Fees 37. Auction sale statements 38. Register of lease of plots 39. Handing bills 40. Sheets and Ropes register 41. Unaccounted for invoices 42. Check of machine prepared abstractrs 43. Freight forwarded scheme 44. Container service 45. Quick Transmit service record of these services should be scrutinized. Office Manual 305 ANNEXURE-32 (PARA-542) Register for review of court cases finally settled in vario0us courts compensation claims. (Authority:POO 839 dated 19.9.1963) . Sr. no in C.C.S. file No. Invoice Register No. and date stateion from& To nature of consignment etc. 1 Legal expenses 6 2 Special features notices eg. Remarks regarding(I) whether suit could have been avoided (ii) failure of the advocate (iii) faults of the railway staff(iv) absence of Railway witnesses in court (v) delay in not settling court decrees resulting in extra expenditure (vi) non-availability or non-production of relevant records etc. (vii) whether appeal has been preferred or not etc. 7 Principal Director of Audit, Central Railway of cause ether decreed ount or comprised compensation of out of court the claim suit 3 4 5 erence to Audit ailed initials of Note special the person letter etc. conducting the original audit. 8 306 9 10 ANNEXURE-33 (PARA 561) Inspection Programme for the year………………………… Name of Section/Division………………………………….. SR. Name of Periodicity Months& no the year of last office to inspection be by inspected Months of Time allowed Total for time proposed Col.8+9 inspection by Percentage of gazetted superviseon prescribed Remarks whether any chan-ges in time allow-ed etc. is needed 11 12 A/cs Audit A/cs Audit Main Sub office office 1 2 3 4 5 6 7 8 9 10 INSTRUCTIONS 1. All offices coming under the jurisdiction of the section/division should listed out in col.2 full name of the office, sub-office, location of main and sub-office should be clearly indicated. 2. Whether the inspection to be carried out is annual, biennial, triennial etc. should be indicted in Column 3. 3. Columns 4 and 5 should be invariably filled in. These should not be left blank. 4. If inspection of an office is due, the month proposed should be indicated. If not, ‘Not due’ should be indicated offices should be arranged on col.2 in a chronological order i.e. office proposed to be taken up in April should be mentioned first and so on. 5. The information in columns 8,9,10 should be as per the prescribed for the offices as mentioned in the manual. If any changes, are made previously temporary or experimental measure, the authority therefore should be quoted in the remarks column. 6. Col. 11 self explanatory. 7. col. 12 self explanartory 8. In case of review of major works, full particulars, like name of the work, location of the works, estimated cost, actual expenditure, whether it is a first review etc. should be clearly indicated. 9. List of completed works should be furnished. It should be mentioned against each such work whether completion report has been drawn up or not. 10. If there is no grant in aid institution coming under inspection, a certificate to that effect should be furnished. 11. It should be certified that the list of offices has been reviewed and no new offices has been omitted to be included. 12. This programme should be signed by the Branch officer. ANNEXURE-34 [PARA-564(4)] PART-1 ITEMS SPECIAL TO INDIVIDUAL OFFICES (A) Divisional Railway Managers (Operating & Mechanical) Office. 1 Inspection of one station for check of leave accounts Service Registers, Pass Accounts, Dead stock if any other item not covered by TA Inspection. 2. Mileage bills of Loco staff. 3. Mileage bills of Traffic staff. 4. Payments of outturn allowance of signalers and Teleprinter operators. Check of outturn allowance a detailed check of one day’s record(all messages) of all the signalers may be done. The relevant entries for the day should also be traced in the monthly statement LT/SI P.O.O. No. 034 of 12-7-68. 5. Cattle grazing tickets 6. Agreements with contractors for coal handling work and Miscellaneous work. 7. Recovery of charges for Engines hire, wagon repairs, supply pf water or any other service rendered to other Government Departments, local bodies and other departments of the Railways. 8. Working of Imprest system in Loco and C&W sheds. 9 Coal/oil survey sheets. 10 Supply of Watches to guards and dreivers. 11. Register of relieving stag. 12 Accounts of Transportation workshops, if any. 13. Saloons-movements of. I. Loco Sheds and C&W Depots. 14. Verification of coal handling bills with shed documents (Loco shed). 15. Shed returns (T.323) comprising:(i) Exchange Book (G-210-f) (ii) Stock Register (G.291-B) (iii) Coal Checker’s Register. (iv) Coal charging Register. (v) Coal issued to each Drive or Engine (T.141). Principal Director of Audit, Central Railway 308 (vi) Daily issue of coal-summary of Daily issues (T.402). (vii) Shed returns i9n respect of Oil consumption. 16. Weight bridge inspection. 17. Time Board (loco shed and C&W Depots) 18. Stores Accounts (Loco shed and C&W Depots) 19. Numerical ledgers (Loco shed and C&W Depots) 20. History books of Diesel locos. 21. Repair register for locos. 22. H.S.D.Oil, lubricants and greases. 23. Air conditioned Rest House. 24 Diesel Rail Car. 25. Punctuality of running of trains. 26 Late starts of Goods trains. 27. Load of trains. 28. Utilisation of wagons surplus empties, wagon Km and net tonne km per wagon day starting wagon load and wagon load during run. 29. Performance of marshalling yards, transshipment points and terminal goods stations. 30. Lind of Engines and Drives. 31. Light Engine running. 32. Engine utilization-stock of Engines-Engine km per engine day in use/ on line. 33. Repairs position of wagons-Hot axles. Detention for repairs in C&W depots. Materials and Labour utilized for repairs to wagons in C&W deposts. 34 Repairs position of Engines-Engine failures-Time taken for repairs in Loco shedsMaterials 35. Fixation of trip for engines vis-à-vis consumption of coal. 36. Review of minutes of Fuel Economy Committee Meetings. 37. Review of adequacy of cinder collected and disposal thereof including sale rates for cinders. (B) Branch stores offices and Stores Depots under Stores Dept. or Engineering Department. 1. Local purchase orders with day Books and bills passed. Office Manual 309 2. Penalties waived or imposed. 3. DS 8 Register with day books and gates passes. 4. Auction sale account. 5. Crane charges. 6. Clearance of material sale D/notes and recovery of ground rent, if any. 7. Inspection of issue wards. 8. Recoupments of stores. 9. Fixation of maximum and minimum. 10. Disposal of surplus material 11. Newly purchased material classified as”Surplus”. 12. Survey Committee Reports. 13. Sale of Stores and scrap to Railway employees and outsiders. 14. Material issued on loan. 15. Account of empties. 16. Delay in release of loaded wagons and demurrage. 17. Accuracy of weighing machines and weigh bridges. 18. Register of samples and accountal of patterns. 19. System of stock verification etc. (to see that the verification is not confined to those item the stocks of which are low.). 20. Accounts custody and disposal of scrap. 21. Arrangements for Safe Custody of valuable and easily removable stores. 22. Accountal of rejected stores. 23. Entrusting printing work to outside presses (DCOSG). 24. Timber shed (MTN, JHS7SC). 25. Bills of Handling Contrtactor (H.B.Depot). 26. Bills for Port and Custom charges (H.B.Depot). 27. Purchase of Stationery (S&T Depot). 28. Printing of Books and Forms (S&T Depots). 29. Tracing of posting of receipts and issues of stores into numerical ledgers. (Eng. And S & I Depot). Principal Director of Audit, Central Railway 310 30. Review of Priced ledgers (Engg. & S & T depots). 31. Check of Account Current (Engg. & S & T depots). 32. Custody stores Account (Engg. & S & T depots). 33. Unloading Registers (Engg. & S & T depots). 34. Review of register for Stock Items covered by warranty periods. Corrected vides C.S. no. 144 dated 22/5/89. 1. Engagements labour of special 2. review of works register 3. Review of Minor works 4. Rate slips & rates register 5. Register of measurement books issued 6. Work Orders 7. 25. Tally Card & Field time books. 26. Reconciliation of field time books with job cards. 27. Job cards 28. Accounts of contractors. 29. Review of register of rest houses. Measurement Books 30. Engine hire bills. 8. Contractors bills 31. Manufacture Accounts 9. Adjustment Vouchers 32. Check of movement shown in T.A. Journals with dates of records of measurements. 33. Engineering Plant reserve – Hire to other Govt Depts. And outsider (B.E.MMR). 34. Register of Bridges 35. Register of level crossings 36. List of completion. 37. Hire of railway property. 38. Sale of grass. 39. Register of usufruct trees. 40. Inspection of sub- offieces (i) S.Rs. leave Account & Passes. 10. Siding Register 11. Material at site Account 12. Ballast register 13. Ballast train Drawings. Journals. 14. Sale of coal ashes 15. Sale of wooden sleepers. 16. Contractors ledgers. 17. Land Registers & Registers of cases of encroachment on Rly. Land (including review of old cases). 18. Register of buildings leased to outsiders (ii) Numerical a/c of Stores-Imprest custody &consumable stores. 19. Field time Books. Office Manual materials 311 20. Work establishment. Charged (iii) Receipt &Issue. (iv) Stores returns. 21. Comparison of Railway rates with Civil Rates. 41. Completion Report of work costing below Rs. Lakhs. 22. Register of classification of soil. 42. Annual statement and Account of Holiday Homes. 43. Bills for payments Municipaltaxes. 44. Cattle grazing tickets. 23. Following items in AEN’s office:- (i) Record AEN in regards to witnessing of payment to staff. of 24. AENs workshop. (C) Engineering Department –Electrical- 23. Electricity purchase 24. Supply of electricity to outsiders. 1. Engagement of special labour. 2. Review of works register 25. A/cs. Of fans & other loose electric fittings, 3. Review of minor works 26. Fire of railway property. 4. Rate slips & rates register bills. 27. Meter reading statement & Electricity bills 5. Register of measurement books 28. Power houses working of power cost statement. 6. Works orders. 7. Measurement Books . 29. Coal Account and Stores Account of Power House 8. Contractors bills. 9. Adjustment voucher. 30. Comparison of Railway rates with civil rates for electric supply 10. Contractor ledgers. 31. inspection of sub-offices 11. Field Time Books. (i) S.Rs. leave account and passes. (ii) Numerical account of stores Imprest custody and consumable stores. 12. Work charged establishment 13. Following items in AEE’s (iii)Receipt and Issues. office:(iv) Stores Returns. 14. (I) Record of AEEs in regard to witnessing of payment to staff. 32. Bills for payment of municipal taxes. (ii) Regr.of vehicles (iii) Thumb impression register 33. Working of simplified procedure Principal Director of Audit, Central Railway 312 15. AEE’s workshop. 16. Tally cards & Field time books. 17. Reconciliation of field time books with job cards. 18. Job cards 19. Account of materials Issued to contractors 20. Manufacture Accounts. 21. Check of movement shown in TA Journals with dates if records of measurements. 22. Review of deposit works. for billing and recovery of electrical energy charges in DEE/DPO’s office. (c) Engineering – Signal & Telecommunication Department:1. Engagement of special labour. 2. Review of works register. 3. Review of Minor works. Time 4. Rate slips & rates register 5. Register of measurement books 6. Work orders. 7. Measurement Books. 8. Contractor bills. 9. Adjustment vouchers. 10. Material-at-site-account. 11. Contractors ledgers. 12. Field Time books. 13. Work charged Establishment. 14. Following items in ASTE’s Office:(i) Register of vehicles (ii) Thumb impression register. 15. ASTE’s workshop 16. Job cards. 17. Reconciliation of field time books with job cards. 18. Tally cards and field books. 19.Account of materials issued to contractors 20. Manufacture Accounts. 21. Check of movements shown in T.A. journals with date of records of measurements. 22. Review of deposit works. 23. Hire of railway property 24. Inspection of sub- offices: (i) S.Rs Leave Account & passes (ii) Numerical account of Stores Imprest custody and consumable stores. (iii) Receipt & Issures. (iv) Stores Returns. 25. Engine hire bills. 26. Bills for payment of municipal Taxes. (D) Divisional Commercial Suprentendent,s office. 1. Busy season staff. 2. Agreement regarding goods handling work etc. 3. Lease of plots of land. 4. Review of contract for refreshment Room, Food staffs, Tea stalls, Beverage stall etc. 5. Recoveries of excess fare. 6. Recoveries and Remission of Wharfage & demurrage. 7. Recoveries of fees etc. from vouchers. 8. Indemnity bonds. 9. Review of D.S’s report regarding ticketless travel. 10. Review of recoveries from station staff on accounts of station accounts and its debits Office Manual 313 11. Account of the bags issued to ticket checking staff, Hamals etc. 12. Roster duties of ticket checking staff. 13. Register of relieving staff. 14. Issue of concession certificate to students. 15. Agreements for cycle stand. 16. One station (Check of leave accounts etc.) 17. Recoveries of Licence fees and cost of uniforms from Licensed porters of stations. 18 Fixation and remission of rent/rates for occupation of retiring rooms. 19. Check of expenditure incurred on marketing of forfe hospitality fund. Authority:- Au/Rep13(4)vol.-IX-143) dated 7-3-69, CS-87 Remember to the Existing item i) introduced by Cs 89 as item 19. Authority:-1) Au/COR/45/Vol.I-1811 dated 18-3-80 & 2) Au/COR/45/VolI/1035 dated 26-5-86 CS No. 167 dated 5-12-89. (E) – Medical Department 1. Matrons account. 2. Indoor patients register. 3. Diet charges recovery statement. 4. X-ray charges recovery statements and accountal of receipts and disposals of X-Ray filsms. 5. Register of Medicines, instruments etc. 6. Register for supply of Contraceptive and recovery of cost there of where necessary. 7. Breakage and Loss statement. 8. Distribution of conservancy staff. 9. Medicines from staff benefit fund. 10. Register of outdoor patients. 11. Linen accounts. 12. Fees to non-subsidised surgeions and other Govt. medical Officers or private practioners for services to passengers and other person injured in accidents. 13. Financial expenses. 14. Review of quarterly statement of expenditure on family planning scheme. 15. Review of narrative reports on the makinhg of family planning scheme. 16. Check of fees paid by retired Rly. Employees for availing of Medical facilities from Rly. Hospitals. 17. Recovery, adjustment of charges for medical facilities rendered to staff of other Rly./outsiders and other Govt. department. (F) Other Department. (i) Heads of Department 1. Sanctioned strength and distribution of staff of various categories to percentages laid down by the Board (All HODs) 2. Special works, trials and experiments carried out under the orders of the Railway Board or other authorities. (All HODs) 3. Work Orders (CME, CE, CEE,& SCTE). 4. Reports relating to incentive scheme & working of the same (CME). 5. Rolling stock Account & proposals for addition & renewal delay in installation and commissioning of Machinery and Plant (CME). 6. Hire and haulage charges account with I.R.C.A.(COPS). 7. Saloons of high officials (COPS&CCS). 8. Special Trains (COPS&CCS). 9. Utilisation of special Type of goods & coaching stock (CME& COPS). Principal Director of Audit, Central Railway 314 10. Railway Accidnts (Reports& payment of compensation on Account of (COPS). 11. Review of statistical data regarding compensation claims (CCS) 12. Refund of overcharges (CCS). 13. Auction sale in lost property offices & review of L.P. accountal (CCS). 14. Concession to public (CCS). 15. Remission of wharfage and demurrage (CCS) 16. Licencing of land, cycle stand, shoe polishing licence and Barter licence (CCS). 17. Licencing of stalls (CCS). 18. Accountal of saleable tariff. (CCs). 19. Payment to Municipalities (C.E.) 20. Disposal of overstock and surplus stock (CCS). 21. Operation of items covered by IDS for schedule demands (CCS). 22. Acceptance of gifts to Rly. Hospitals & accountal there of (CMO). 23. Landing bills (CCS). 24. Receipt, custody & disposal of samples (CCS). 25. Procurement of sleepers (CE) Note:-Other items not included above but mentioned under the various Divisional Officers should also be looked into during the inspection of the HOD’s concerned. 26. Check of port and custom charges (COS) . 27. Review of regestier of stock items cover by warranty period (COS). 28. Examination of indents for stores (COS). 29. Review of returns sent to the Railway Board (ALL HOD’s). 30. Check of accountal of time tables (COPs). 31. (a) review quarterly statements of railway board regarding shortages in coal and HSD oil (COPs) office. (b) Renumber items 31 to 37 as 32 to 38. Authority:-Au/VOR/45/Vol.1811 dated 18-3-80 & CS 167 dated 5-12-89. 32. Check of telephone/trunk call bill (CSTE) 33. Verification of mortgage deeds/bonds executed in connection with advance granted for house building, purchase of motor car, motor cycle etc. (HODs). 34. Crime register (CSO). 35. Dogs squad (CSO). 36. Band account etc. (CSO). 37. (i) (a) Review of contract agreements entered into with books stalls and check of royalty receipt (CPRO). Note:-No Local inspections of the headquarters of the firms of book stalls need be conducted. Authority (Cs 46 P.O.O106) dated 12-11-79). (ii) Works managers office and office of the chemist and Metallurgist including check of Laboratory accounts. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Office Manual Sanctioned strength of workshop staff and its distribution. Trade tests and promotion of workmen from one category to another. Special works-trials and experiments. Account of furniture, loose fittings release from rolling stock. Indenting of stores for special works programme and repairs. Overtime to workmen. Central over shop outturn. Sale of fire wood & Scrap timber to Railway Employees and outsiders. Acountal of scrap released. Work orders issued bv CME & WM. Incentive scheme-working of. 315 12. Machinery plant installation . (iii) Catering units. 1. Review of Profit & loss account. 2. Profit & Loss on item prepared as per formula. 3. Vouchers accounts. 4. Purchase out of catering earnings. 5. Debits against staff and vendors. 6. Loss of cooked food. 7. Cash remittance 8. Sales cash books. 9. Provision Indents & bills. 10. Stall keepers ledgers. 11. Daily transaction account. 12. Stores ledger work. 13. System of verification of stock of provisions. 14. Coupon system. 15. Credit sales. 16. Review of receipts and the formula prescribed for various items. 17. Review of the catering contracts for supply of commodities. 18. Review of the Account of the Central Purchase Organisation. 19. Review of the fixation of sale prices. 20. Review of license fee from bearers. 21. Recovery of outstanding dues from the restaurant Car Managers. 22. Cases of thefts, fire etc. in Restaurant cars. 23. Review of vending contracts at stations. 24. Recoveries from sweetmeat contractors. 25. Fixation and recovery of fees etc. from vendors. (iv) Chief Cashier’s Office 1. 2. 3. 4. Receipt and remittance of cash. Cash with Pay clerk in Bombay for a day. Indemnity Bonds. Check of returns submitted by Chief Cashier to the Income Tax Authorities about payments to Contractors. 5. Review of Cash Books. 6. Verification of Life Certificated for drawal of pension by the Railway. (v) Printing press and A.S.T.e.’s shop at Byculla. 1. Muster Roll. 2. Time office. 3. Work orders. 4. Stores Account. 5. Work done of outsiders. (vi) R.P.F. training school. 1. Armoury account. 2. Clothing account. 3. Messing agreements. Principal Director of Audit, Central Railway 316 4. 5. 6. 1. Band fund account. Secret source fund register. Dogs squad. Band account etc. (vide COR COR/45Vol. I/4999 dated 10-9-75. (vii) Staff training school. 1. Messing arrangements. 2. Pay and allowances of trainees. 3. Expenditure on equipment, Libraries etc. (viii) Subsidies Hostels. 1. Eligibility of residents for admission. 2. Recovery of messing charges. 3. Review of working of Hostel. (ix) School. 1. 2. 3. 4. 5. Recovery school fees from staff and outsiders. Clothing account and uniform supplied to children. Expenditure on stationery and books. Annual receipt and expenditure Accounts. Realisation of grants-in-aid from state-Government. (x) GM’s office including P.R.O.s office. 1. Advertisement bills payable by railway. 2. Advertisement fees due to Railway. 3. Printing of brochures, handouts etc. Making blocks. 4. Hospitality fund-Incurrance of Expenditure from. 5. Log book of staff car. 6. Sanction for grant-for outsiders. 7. Issue of passes to other than Railway staff. 8. Check of a account of grantees to whom substantial lumpsum grants were sanctioned. 9. Check of accountal of photographic material. 10. Review of Accountal agreements entered into with books stalls and check of royalty receipts. Note:-No Local inspection of the headquarters of firms of books stalls need to conduted. (P.O.O. 1067 dated 12-1179) (xi)Security Officer(ASO’s etc.) 1. 2. 3. 4. Crime Register. Dogs squad. Band account. Review of the periodical reports relating to Losses/thefts of railways/Public property and Losses due to fire etc. Authority:-(Au/COR/45-Vol.I/10416dated 18-3-76 & P.O.O. No. 1071 dated 24-1080) (xii) Items to be seen during the inspection of Railway Service Commission. Office Manual 317 Part I Items 1. Receipts of application fee from applicants & their accountal. 2. Imprest cash account. 3. Miscellaneous cash register. 4. Misc cash receipts & C.R. Notes. 5. Pay orders. 6. Review of inspection report. 7. Expenditure on written/oral Examination. 8. PART:-II Items 1. Postage account. 2. Passes and PTO,s account. 3. Leave register and Leave account. 4. Attendance register and Muster Rolls, Casual Leave account. 5. Salary bills. 6. Travelling allowances journals and bills. 7. Rent Rolls. 8. Increment Rolls. 9. Sanction strength of staff. 10. Service sheets. 11. Revision of pay. 12. Misc bills. 13. Tools and plant register. 14. Stationary account. 15. Clothing account. (Authority C. 525) (xiii) Statutory Canteens. 1. Review of profit and loss accounts. 2. Profit and Loss on item prepared as per formula. 3. Purchase out of canteen earning. 4. Debits against staff. 5. Loss of cooked food. 6. Cash remittance. 7. Cash books 8. Provision indent and bills. 9. Daily transaction accounts. 10. Stores Ledgers Work. 11. System of verification of stock of provisions. 12. Coupon system. 13. Review of receipts & formula prescribed for various items. 14. Review of fixation of sale price. 15. Cases of thefts, fire etc. 16. Review of statements of shortages/breakage’s of outlay crokery. 17. Check of subsidy. 18. Account of fuel. 19. Contract for supply of commodities on daily basis. 20. Any other items for which grant/subsidies are received. Authority:- Au/COR/Insp./Prog/1549 dated 1-6-85 and C.S. -89 dated 13-4-89. Principal Director of Audit, Central Railway 318 PART-II Items Common to all offices. 1. Payment under payment of wages act (Common to all Divisions.) 2. Payment under workmen’s Compensation act.(Common to all Divisions.) 3. Leave account including those of staff due to retire. 4. Rent recovery & rent variation statements. 5. Casual Leave. 6. Attendance register. 7. Muster roll if specially maintained. 8. Service Registers. 9. Advance of T.A. and recovery there of especially those granted from imprest. 10. Salary bills of subordinates and inferior staff. 11. Fixation of Pay. 12. Title to rent free quarters or allowance inlieu there of. 13. T.A. Journals of staff drawing less than Rs. 1440/-which are not sent to Accounts Office. 14. Increments. 15. Hot weather establishment. 16. Payment of local and special allowances such as Bad Climate allowance. 17. Pay orders. 18. Imprest Cash 19. Misc. cash register, receipt and remittance. 20. Postage account. 21. Recovery of water and conservancy charges. 22. Passes & PTO’s including duty card passes and their movements. 23. Dead stock and tools & plant register. 24. Stationery register. 25. Clothing Account. 26. Recovery of diet charges.] 27. Misc. bills including expenditure on expenditure. 28. Tenders and agreements below Rs. 5,000/- to be seen by S.O. (A) to the required extent after obtaining necessary selection. ( Corrected vide CS 88 Au/ Report/Secret/I/Vol.II /Staff. 29. Recoveries from other departments and outsiders for recurring and non-recurring services rendered such as water, conservancy-charges. 30. List of residences, Rent Rolls and Allotment of Quarters. 31. Log books. 32. Review of outstanding Accounts and Audit Inspection Reports PartII. 33. Statement of losses and cases of claims against Traffic Deptt. 34. Review of reconciliation of issue notes received from parties acknowledging receipt of stores and corresponding copies of notes received from Accounts Office with the Block copy. Note:-close watch to be kept on these items to ensure on increase in arrears and deviation from code procedure as per DCA’s orders dated 11-6-67. file Au I/37/Pt.II. 35. Register of numbered books. 36. Register of staff liabilities. 37. Security deposit from staff entrusted with the custody of cash and stores. 38. Control of expenditure-,maintenance ob liability-register. 39. Maintenance of collective record of special casual leave. 40. Payment of tax, if any for motor vehicles. 41. Compensation for loss of articles booked as per F.S.W. Bills. Office Manual 319 42. Scrutiny of services registers of pensionable staff especially those due to retire before next Inspection (P.O.O.799 of Sept. 61) 43. Withdrawal from station earnings. 44. Law charges and court cases. 45. Review of tour notes of Departmental officers and handing over reports of stock holders and S.V. sheets. 46. Cases for local investigation. 47. Recovery of test charges on samples called for in connection with tenders/stores obtained for stock and Trial purposes. 48. Reimbursement of tuition fees in respect of the children of the Central Govt. employees (one quarter to be seen.) 49. Deleted vide C.S. 172 dated 15-5-90 (Au/COR/45/Vol/II dated 11-8-90-) Pr. Director of Aidot’s dated 2-5-90. 50. Check of the exercise of discretion on classification of motor lorry driver (for offices where motors/cars are provided). 51. Recovery of electric energy charges and maintenance of recovery register etc. (upon the simplified-procedure). 52. Review of register of trunk call charges on private account. 53. Review of implementation of recommendation of work study cell. 54. Review of periodical confidential D.Os sent by respective Divisional Executive Officers to their HODs. 55. O.T. allowance, National Holiday allowance and Night Duty allowance. 56. Accountal of Departmental and other books. 57. Issue of Medical Identity cards to Retired Railway employees. 58. Check of Labour Paysheets. 59. Review of Register of advances for conveyances and House building. 60. Credit Notes. 61. Register of sanctions maintained by HODs/DRM. 62. Railway Employees group Insurance Scheme-check of schedules nominations. (Authority:-P.O.O. No. 1088 dated 4-1-83 P.O.O. No. 1094 dated 19-4-84 C.S. 95) ANNEXURE -35 (PARA 565) Monthly Inspection Programme Month………………………… Principal Director of Audit, Central Railway 320 Section/division Office to Probable Percentage Particulars Location Names/ be Dates of of Gos of dates & location of inspected inspection supervision. No. of sub-offices days on where which GO’s Go’s supervision supervision is proposed is required to be exercised and no,.of days for such supervision (POO 1027 of 6.5.76 Main Office & suboffices and no. of occasions on which the work was reviewed in the past & appropriate expenditure on the work since last review of major works. From (Authority:-29-09-77 & AU/COR/100 Order. ANNEXURE -36 (PARA 573) Register of Progress of Inspection Office Manual 321 To 1. Code word RPI 2. Authority Para 424 of Ram (3rd edition) 3. The register is required to be maintained by all section/divisions entrusted with inspection work. 4. The register should be opened in the proforma prescribed. 5. Each register should be used for 2 years and prescribed for 6 years. 6. The register should be put up to Branch Officer in the 1st week of every month. It should be submitted to the Pr. Director of Audit during his visits in so far as sections/divisions situated outside Bombay are concerned. 7. A sufficient space should be left between the successive entries so that all the remarks against each item can be recorded in neat and clear manner. This register should be put upto ADAI (Rly) during his visit. 8. In the ‘Remarks’ column of ‘Record’ of submission’ an yearwise distribution of outstanding inspection reports and number of outstanding paras may be indicated. Idex 1. Record of submission 2. Record of inspection 3. Progress of Inspections Pages Record of submission Sr.no. Date of Initials of submission AAuO/SO Remarks B.O Pr.Director of Audit Record of Inspections the Date of last inspection by the Accounts staff & Audit The name of The date of the the Audit present officer & Staff inspection who conducted the last inspection From To 4 5 6 Sr. no. Name of office inspection 1. 2. 3. Name of the Audit Officer (and staff) conducting the Audit Inspection 7 The month of account checked and the period generally covered The date of receipt of draft inspection report The date of Date submission to approval Dy Director/Pr. Director of Audit 8 9 10 of No. & date Particulars Date Date return from of issue of of reminders of issued inspection which type report sent Principal Director of Audit, Central Railway 322 11 Date of Date of issue of receipt of further Audit remarks first reply of for type 12 13 Particulars correspondence 18 Office Manual 14 of 15 16 further Date of closure Inspection Report 19 323 17 of ANNEXURE – 36 A (PARA 218) Progress of Inspection Sr. no. Month 1 Name of Date of the Office completion to be inspected 2 3 Total no. of Inspection due during the year 4 5 No. of Inspection carried out to end of the previous month 6 No. of Total of Total no. of No. of Explanation for Inspection columns 6 & 7 Inspections Inspections in arrears and the carried programmed to arrears (Col. 9- month in which out during the end of the 8) the same will be the month month cleared 7 8 9 10 11 Introduce the following at the end of this annexure Report of Inspections not completed & Inspection Report not issued by section for the month ending ………….199. of No. No. of No. of Balance by No. of Remarks inspections Inspection inspections the end of inspections programmed programmed carried out the month in arrears at during the to the end of to the end of the end of the month year the month the month 2 3 4 5 6 nd (to be submitted by sections/divisions to COR section by the 2 of every month) A: Position of Inspection not completed Sr.No . Month 1 No. of inspection in arrears out of these programmed to the end of the month 3 2 No. of offices where inspections have been completed but I/Rs are not issued to end of the month. 7 Name of offices inspected I/Rs are issued vide 7 B: Position of Inspections reports not issued Names of Months in Reasons for & the arrears the offices which the probable in arrears inspections by were date vide col. (3) was which the programsame will be mmed. completed 4 5 6 of Date on which the Date completion of the I/Rs was due to be issued but the inspection as per para I of not POO 739 dated Col. 8.1260 8 9 ANNEXURE – 37 Principal Director of Audit, Central Railway 324 10 Reasons for delay in issue of the inspection report with ref to col. 10 and probable date by which-the report will be issued 11 (PARA 574) List of items to be seen during Review of Major work. 1. Scrutiny of contractor’s bills with initial records. 2. Scrutiny of labour pay sheet of departmental works if executed on large scale departmentally. If labour is employed for certain sundry items of works a check of the connected labour paysheets will form part of the regular inspection work only. 3. Scrutiny of M A S accounts. 4. Scrutiny of adjustment vouchers over Rs. 5000/- 5. Critical scrutiny of the financial review statements submitted by the executive. 6. Scrutiny of the financial variation, statements with particular reference to tender papers, where necessary. 7. Liability register. 8. Disposal of released materials. 9. Cases of additional capacities created but remaining unutilized/under utilized (Ref.Au/Insp/S/1217 dated 7.5.69 filed in Au/BB/X/47/ROC dated 31/5/69.) 10. Standard of track on trunk routes use of 105 Ibs rails (The items to be reviewed during review of relaying works). (Authority:- Au/ECPA/B/II/6159 dtd. 25.8.69 of DAUO’s orders dated 12.9.69.) 11. Escalation in prices-It should be examined whether substantial price increase have been given due to failure or delay on the part of the Railway Admn. in doing their portion of the work or supply of material etc. (Authority:AAu/COR/103/9954 dtd 9.12.69). Office Manual 325 ANNEXURE -38 (PARA-578) Time allowed for Inspection of various offices Departments Sr. N o. 1. Administrative Offices A. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 . 11 . B 12 . 13 . 14 . 15 . 16 . 17 . 18 . 19 . 20 .. C. 21 22 . Party composition Days allowed for Inspection* AAuO/SO(A Auditors ) Annual CE/CBE/CTE/CPBE 1 COPS(including 1 CPTS,CTPS,DY.CME(F&P) COS(incudingCMM) 1 CSTE(including CCE) 1 Chief Claims office 1 CCS(including DY.CCS Rates & 1 M& S) Chief Project Manage (PRS) 1 CCS (Catg) 1 CMO 1 Cashier Hqrs. Available staff Passes & PTOs issued by FA 1 &CAO Biennial Gm(including 1 CPRO,CPLO,DY.DVO,SWS,etc.) Chief Security Commissioner 1 (RPF) (includings DOS squadMTN, Band account-MLND) COPS 1 CCS(Catg) 2 2 19 22 2 2 2 2 20 19 13 17 2 2 2 7 7 5 2 2 2 16 2 18 2 5 1 2 3 CEE 1 2 3 SEE(CLW) 1 2 2 CCO 1 2 5 Chief Cashier 1 2 11 CPO 1 2 5 2 2 2 2 Triennial Passes & PTOs issued to EMB 1 Society Passes & PTOs issued to ECC 1 Bank Principal Director of Audit, Central Railway 326 II 1. 2. 3. 4. 1. 2. 1. 2. 3. 1. 2. 3. 4. 5. 1. 2 3 1. 2. 3. 4. 1. 1. 2. 3. 1. 1. 2. 3. Executive Offices Engineering Sr. DEN/DEN AEN/XEN CPWI/PWI/.IOW etc. Review of Major works Signal & Telecommunication (including Microwave) Sr.DSTE/DSTE SI/CTI/CI etc. Electrical Sr.DEE/DEE/Sr.DEE/DEE(TRS/( TD) etc. AEE-(TD/TRS) TFO/CTFV/EIEF etc. Commercial DRM(Commercial) SM Catering Estt. Dining Car(Mobile unit) a. Trip check b. Static unit/base kitchen Goods inspection Medical ACMD/MD/CMS MS,Sr.DMO Health Units Security Asstt. Security Commissioner Divl. Security commissioner Asstt. Commandant IPF/SIPF/GRP etc. Railway Schools a. Secondary b. Primary c. Basic Training school Stores DRM(S)DCOS/ACOS ACO/DSS/DSK PL Units Cash & Pay Divl. Cashier Operating & Mechanical DME (Diesel) (Including tune for sub-offices) Other offices & Units Printing Press Railway Power House Subsidised Hostels Divl. Operating Departments Office Manual 327 1 1 1 1 2 2 2 2 20 4 2 5 1 1 2 2 7 2 1 2 7 1 1 2 2 6 2 1 1 1 2 2 2 15 2 4 1 1 1 2 2 2 1 3 2 1 1 1 2 2 2 7 4 2 1 1 1 1 2 2 2 2 9 7 5 2 1 1 1 2 2 2 4 2 3 1 1 1 2 2 2 9 4 5 Available staff 1 1 2 2 1 1 1 2 2 2 9 2 3 1. 2. 2. 5 3. 4. 5. III DRM/ADRM/SR.DOS (Optg.) 1 DOS (OPtg.) DME(power)/DME (Operating) 1 (including time for sub-offices) 3 15 3 2 DOS(M)/DSO DME(C&W) & DPO (including time for sub-offices) Traffic Audit (Station Inspections) 1. Category of station a. very big b. Major c. Minor IV Stores (Hqrs) 1. DCOS(G) (CRD) a. Main office days each section b. Sections 2 days each ward 2. ACOS (HBHR) 3. DCOS(M&D)(MMR) 4. S& T- Ward (CRD) 5. ACOS(BYC) 6. Cloth Cutting Factory (CRD) 7. CPWI(S)(AQ) 8. CPWI(S)(AQ) 9. Test Audit Pl Unit V. Survey & Construction 1. CAO(C)/CE/CECE 2. CE(Survey) 3. COS(C) 4. CSTE(C) 5. Dy. DSTE(C)Telecom (including time for sub offices) 6. DY.CE(C) 7. Dy.CEE(C) 8. Dy.DME(C) 9. DOS(M) 10 CPM(PRS) 11 XEN(C) (including time for sub offices 1 1 3 3 15 1 2 2 1 1 1 2 10 8 4 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 14 16 10 8 8 4 5 5 1 1 1 1 2 2 2 2 2 25 7 12 12 9 1 1 1 1 1 1 2 2 2 2 2 2 -do-do7 6 7 10 12 13 14 15 16 17 VI 1 1 1 1 1 1 2 2 2 2 2 2 -do-do5 5 2 1 1 2 20 1. DEE(C) DSTE(C) Deposit works (Constn)/sidings Review of Major Works AXEN/AEN(C) PWI/IOW/DSK (C)etc. Railway Electrification Engineering CE/DY.CE(including sub- Principal Director of Audit, Central Railway 328 divisional and sub-offices) Electrical 2.a CEE/DY.CEE(including divl. And sub offices) b. OHE/Design etc. Railway Electrification S&T Telecommunication 3. CSTE/DY CSTE (including sub divl. & dub offices) Stores 4. DY.COS(including sub. Divl. And sub offices) Operating 5. DOS &sub-offices General Administration & Personnel 6. CPM/SPO etc. Accounts Department 7. Passes & PTOs Cash Department 8. Cashiers 9. Review of Major works VI MTP (R) I 1. CAO(C) 2. Dy.CE and attached sub-offices 3. Dy.CEE and attached sub-offices 4. Dy.DSTE and attached sub-offices 5. Dy.COS and attached sub-offices 6. EE (C) 7. Review of Major works 1 2 20 1 2 10 1 2 18 1 2 15 1 2 9 1 2 5 1 2 3 1 1 2 2 1 5 1 1 1 1 1 1 1 2 2 2 2 2 2 2 20 10 8 8 8 7 3 ANNEXURE – 39 (PARA 581) CLENDER OF RETURNS Office Manual 329 1. 2. 3 4. 5. 6. 7. 8. 9. Code word CR Authority Para 101 of RAM (3rd edition) The register should be closed every week on Monday for submission to the Branch officer and on the 10th of every month to Dy. Director/Pr.Director of Audit. All section and divisions Which are under direct charge and direct supervisory charge of Dy.Director should put up the Register to the Dy.director sections and divisions which are under direct charge and direct supervisory charge of the Pr.Director of audit will submit the Register to Register to Pr.Director of Audit. All sections and divisions which are under supervisory charge of Pr.Director of Audit and sections which are out of Bombay and are under direct supervisory charge of Pr.Director of Audit should send a monthly report to the Pr.Director of Audit through COR section bringing out cases of delays arrears in submission of returns along with the monthly and quarterly arrears report in the same form in which the arrears are reflected in this Register. Delayed Returns The serial number of the outstanding returns should be suffixed by the words WF/M/Q etc. to indicate whether it is weekly/fortnightly/monthly/quarterly returns. Special returns due in a particular year should be identified by suffixing the letter‘s’ to the Sr.no.and the item will be noted at the end of the monthly list. Separate pages will be used for different periodical items i.e. Weekly/fortnightly/Monthly/Quarterly/Half yearly/Yearly. The register will be used for one year and preserved for 2 years. Changes in the dates of returns already entered in the Calender of Returns should not be made without the specific approval of the Pr.Director of Audit/Dy.Director(Vide POO 715 dt.21.4.60). The B.O. should test check the dates mentioned in this Register at the time of every submission in such a manner so that each item of the CR comes under such test check one in a year (CAG’s letter no. 3504-Codes/I-57/71 dt.14.9.77). The form of the Register is given below: Office of the Pr.Director of Audit, C.Rly.,BB VT. …………… Section CALANDER OF RETURNS Submission To: B.O. every Monday Dy.Director: 10th of every month Pr.Director of Audit: 10th of every month To br preserved for 2 years i.e. upto 31.3.19. Index Page No Record of submission 2 List of delayed returns in a month 3 List of delayed returns in a month 4 to 20 Answers to queries 185 to 200 (Suitable number of pages may be allotted according to requirements) Principal Director of Audit, Central Railway 330 Record of submission Month in which Returns are due Date of submission of Register Dy.Director/Pr.Director of Audit (dueon 10th) Initials of So Every Monday Remarks *See instructions No.3 List pf delays in submissions of returns for Dy.Director/Pr.Director of Audit’s information Month Sr.no.of the Name of the Due date Date sent@ in return of return and to whom which Audit due return is due Remarks (for Pr.Director orders Pl. sent) @ If not sent by the time of submission of the register, column should be left blank. Note 1.Short delays of 2 or 3 days in returns to be submitted only to the BO. Need not be mentioned. SR.no. Particulars of returns W.List of weekly returns To whom When due due Authority April.May etc. F List of fortnightly returns M List of Monthly returns Q List of Quarterly returns H List of Half yearly returns Y List of yearly returns (columns to be opened as per weekly returns) Special or accountal returns should be included at the end of regular returns (Authority:POO 699 of 21.8.59 POO 715 of 21.4.60 POO 935 of 5.8.68 POO 996 of 5.5.73) Office Manual 331 ANNEXURE – 40 (PARA 581 PROGRESS REPORT REGISTER 1. Code word PR 2. Authority Para of Ram (3rd edition) 3. The register should be maintained in the proforma given below. The register will be used for one year and the register will be preserved for 2 years. 4. The sectional staff and the BO should sign every month at the end of each section(i.e.monthly quarterly etc.). The details of arrears relating to each item of audit should be shown in the selection register itself. This should also include arrears of current and post review and original audit by GOs and SOs. The progress report should show the arrears in a summarised form as shown below. Reference to items of audit in this part of the register should correspond to the items mentioned in the selection register e.g. Month Item i. Arrears due to arrears A/c office 2/77 28 M.30M. 3/77 Nil 31 M ii. Arrears due to non-availability of vouchers 2/77 16 M,.21 M iii Arrears in Audit 3/77 Nil 6. The arrears should be assessed in terms of man days in the following proforma and sent to COR section under BOs initials. PROFORMA Category Arrears at the Arrears at the Fresh arrear for Total arrears end of previous end of current current month (Col.3+4) month month from those relating to Col. 12 1 2 3 4 5 1. Arrears due to arrears in Accounts office 2. Arrears due to non-availability of vouchers 3. Arrears in Audit……………… Total……………... Principal Director of Audit, Central Railway 332 Category Arrears at Arrears at the end of Total the end of current month arrears previous (Col. 3+4) month From those Fresh relating to arrears for Col. 2 current month Brief reasons for arrears 1. Arrears due to arrears in Accounts office 2. Arrears due to non-availability of vouchers 3. Arrears in audit Total (Authority: POO 699 Ann. 21.8.59, POO 808 dt. 17.11.62, POO 833 dt. 3.8.63 POO 982 dt. 18.11.72.) Office Manual 333 ANNEXURE – 41 (PARA 581) Sectional Register 1. Code word SEC 2. Authority Para 114 of RAM (3rd edition) 3. Record of submission The register should be put upto B.O Qtly . ( i.e.1st week of April, July, October and January. 4. The Register should be used for five years and preserved permanently. 5. The Register should be maintained in the form given below: Index 1. Record of submission 2. Sanctioned strength 3. Duties of section as a whole 4. Nominal Roll 5. List of Books in the section 6. Answers to queries Page No. ___ ___ ___ ___ ___ ___ Record of submission Date of Initials of Month submission to which report relates S.O/AAuo Remarks BO PDA Sanctioned strength Date SO/ From Pt. To AAuOs Ty Auditors Pt. Remarks Ty Duty list of section as a whole Brief particulars of the duties as given in the office manual may be indicated here. Nominal Roll SOI SR.No . SOII Name Status Pt. Offg. Attached From Specimen signature To Duty list of SOs Similar information should be furnished for Auditor etc. of the section. One page should be allotted for each member of the staff. On the page opposite to the nominal roll the duties allotted to him/her should be indicated. Due dates for quarterly/Half yearly/yearly items These should be indicated in the following form Sr. no. Item of audit Principal Director of Audit, Central Railway Month(s)due 334 Authority (POO 713 2.3.60) List of Books maintained in the section These should be kept in the following form Sr. no. Name of the book No. of last Remarks correction slip pasted in the Book (to be noted in period) Sr. no. of the Correction slip Note: The list of files need not be kept in the register. A separate ‘File Register’ should be kept. (POO 699 dt. 21.8.59 POO 713 dt. 2.3.60-POO 840 dt. 12.11.63 POO 982 dt. 18.11.72) Office Manual 335 ANNEXURE – 42 (PARA 581) Selection Register (Code work SLR) To be used for One year and preserved for 5 years Audit items are checked hereby in the four categories and the form in which the register should be maintained for each categories is given below. Extent of check and CR (on top and should be treated as ‘Secret’. i.Those which are divided into a certain number of units which one unit is selected for period. Form of register Month of Audit 1 No. of vouchers Item selected Particulars unit no. documents 2 3 of Auditors Initial 4 5 Items for Current review Reference to Audit Remarks review remarks with dated note if any initials of SO 6 7 8 9 Note: 1.The unit into which the items if divided will be entered on a Railway leaf and the unit selected there from will be entered in col. 3 of the record of the selection. 2. The column current review remarks with dated and initials of SO(A) should be shown only in the ‘Current review register’ which is being maintained separately .(cs no. 62) Au/ COR/131/3831/dtd. 28.6.83. Those for which a percentage check if applied Month Month of Vouchers Auditors of Vouchers selected dated Audit for audit initials 1 2 3 4 Item for Current review review remarks in brief with dated initials of SO 5 6 Ref. to remarks audit note if any 7 8 Items for Current review Reference to Audit Remarks review remarks with dated note if any initials of SO 6 7 8 9 Note:- 1. The unit into which the items if divided will be entered on a Railway leaf and the unit selected there from will be entered in col. 3 of the selection. Principal Director of Audit, Central Railway 336 3. The column current review remarks with dated and initials of SO(A) should be shown only in the ‘Current review register’ which is being maintained separately. (cs no. 62) Au/COR/131/3831/dtd.28.6.83. Those for which a percentage check if applied Month Month Vouchers Auditors of of selected dated Audit vouchers for audit initials 1 2 3 4 Item for Current review review remarks in brief with dated initials of SO 5 6 Ref. to Remarks audit note if any 7 8 Item no. in programme of audit be given on top. Percentage of vouchers submitted for selection may be entered in a separate register and selected items only entered in col.3 and got attested by B.O. Note:- Attestations of vouchers noted in col. No.3 of the SLR should be got done by AAuO. (Authority:-Au/COR/131/7032 dtd. 31.1.86 CS 81) Extent of check and extent of current review may be given on top. Those which are completely checked. Month Particulars of of Audit vouchers audited 2 Auditors dated initials 3 Item for Current current review review remarks in brief with dated initials 4 5 Ref. to Remarks Audit note if any 6 7 Item number in programme of Audit to be given on top of the page. For items of General Review Month Particulars of of Audit vouchers reviewed Auditors Item for Current review dated current initials review if remarks in brief any with dated initials of SO Ref. to Remarks Audit note if any Note:- 1. The column current review remarks with dated initials of SO should be shown only in the current review register which is being maintained separately. Office Manual 337 2. Item number in programme of audit or any other Authority in the forms of CAG’s letter (if any to be given on the top of the page) (cs 63Au/COR/131/dtd.28.6.83) The register should be treated as ‘Secret’ and kept under the custody of Senior Auditor. An index of the commencement in the register divided into several groups mentioned above. The register may be split up in the four parts.One part corresponding to each group sufficient number of papers being set apart for each part to record the work for the entire year. The register should be submitted to B.O. every month on the 10th. When the register is so submitted it should be indicated that: a. b. the selelcltion of vouchers for that month has been completed. In respect of the previous, the audit has been completed to the extent vouchers have been made available and CR selection taken. The record of submission should be in the following form Month Audit 1 of of Date of Submission Selection vouchers due for (due date is 10th) audit for the month has been completed. Dated initial of Auditor/SO 2 3 Certified that all vouchers documents selected for audit and review have been audited and reviewed and those required to be submitted to GO/SO for review have been submitted. Dated initials of Ar. 4 (POO 875 dtd. 20.10.64) At the end of each month a summary should be prepared for each item of audit in the following form. Summary of ………………. 1. No. of vrs. Outstanding from previous month. 2. No. of vrs. Of serial no. 1 audited during the month Balance: 3. No. of vrs. Of the current month not audited……………….. Total: Reasons for arrears Arrears in a/cs office. Arrears due to non-availability of vrs. Arrears in audit. Principal Director of Audit, Central Railway 338 ANNEXURE – 43 (PARA 581) A separate register for selection of documents for current review by the section officers should be maintained in the form prescribed. Only the vouchers required to be current reviewed by the SO should be indicated there in with reference to the entries in the selection register. This should be in the custody of the SO and treated as secret. (CAG’s letter No. 12/5-RAI/17-3-65 dated 24-4-64-Au/COR/Con.-9 II) Current Review Register 1. Code word CRV 2. Authority Para 157 of RAM. CAG’s letter No. 12/5RAI/17-3/64dated 24-4-64 P.O.O. 855 dated 21-5-65 and 968 dated 8.6.71 1042 dated 4.10.77. 3. Record of submission. The register should be put up to B.O. every month on the 10th alongwith the selection Register. 4. The register should be maintained in the form prescribed. 5. The register should be treated as secret and maintained by the SO(A). 7. The Register should be used for one year and preserved for 5 years 8. All items of work under programme of audit viz. monthly, quarterly, half, yearly items and which are to be current reviewed on percentage basis or to be generally reviewed by the SO(A) should be indicated with reference to the entries in the register of selection for audit. I Record of submission Month Audit of 1 Date of Submission 2 Initials of SO 3 Initials of BO 4 Remarks 5 II Index of items for Current Review Sr. no. Particulars of items 1. Monthly Items 1. 2. etc Quarterly Items 1. 2 Office Manual 339 Reference to Page No. 3 2.etc and so on. III Form of the register Month of audit 1 Month of Accounts 2 Particulars of items audited (ref. To.P. No. of SLR) 3 Items selected for CR 4 CR Remarks 5 Reference to Audit Notes if any. 6 Remarks 1 Note:-Reference to Programme of Audit No. and extent of CR should be mentioned at the top together with the description of the item. Principal Director of Audit, Central Railway 340 ANNEXURE – 44 (PARA 581) Register of special letters/Part.I Audit notes and Part.I Inspection Reports (code word AN/I) Register should be in the following form and used for watching the clearance of items issued during two years and reserved for 5 years. Index 1. 2. 3. 4. Page Record of submission Special letters Part.I Audit Notes Part.I Inspection reports Record of submission to BO Month 1 Category & pertaining to 2 year Opening Balance Issued during the No. Items month no. Items 3 4 Closed Outstanding at the Initials of Remarks during the end of the month SO/AAuO . & B.O month 5 6 7 8 Special letters Audit Notes Inspection Reports Special letters Sr. no. Letter No. To whom No. of paras Money date & sub issued involved & brief involved particulars of the objection 1 2 3 4 5 Ref. to diary 6 inward Date of reminder 7 value No. & date of final Remarks reply 8 9 Part I. Audit Notes (Notes more than 2 Audit notes on each page) Sr. no. Office Manual Audit no Date Particulars (indicate the essence of objection by 341 Money Date of Date of Remarks value replies reminder wherever involved 1 2 catchwords) 4 5 3 6 7 8 Inspection Report Part I Sr.no . Name of Inspection the office Report inspected and the month of inspection la[;k 1 2 Sub para nos. or items of money value not recovered 9 Subject Total (catchwords) no. of sub paras or items nos. Sub para No.or items no. Money value 4 5 7 8 fnuka d 3 Reference to inward diary if any 10 Principal Director of Audit, Central Railway Para no. 342 6 Date of How finalized reminder/rejoinde r 11 12 Remarks 13 ANNEXURE – 45 (PARA 581) Register of Part II Audit notes/Inspection Reports and Rough Audit notes. (code word An II) The register will be in the following form and will be used for 2 years and preserved for 5 years. Index Pages 1. Records of submission 2. Rough Audit notes 3. Part II Audit notes 4. Part II Inspection reports Record of submission Month Category 1 2 Opening Balance 3 Closing Cleared Issued during the during the Balance month month 4 5 6 Rough Audit Notes Sr.no. Audit Note No. & Particulars date 1 2 3 Initials of SO BO 7 Action taken 4 Part II Audit Notes (not more than2 items on each page) Sr.no. 1 Audit Note no. Particulars & date 2 3 Money value if Action taken known 4 5 Part II Inspection Reports Adequate space to be provided for noting replies and reminders Sr.no . 1 1.Name of Officer inspected Particulars Money Action 2. Date of completion of inspection value if taken 3.Report no. &date known 2 3 4 5 Genearal Note:-Outstanding objecting should be classified year wise. Register need not be submitted tp Pr.Director of Audit Office Manual 343 ANNEXURE – 46 (PARA 581) Register of sanction received from Railway Board (code word R B S) 1. The register should be in the following form. The register should be used for 3 years and preserved for 20 years. Sr. no. 1 Refe r to sr. Nos A Dak 2 Refe r to Sr. NOS . a Dak 3 Sanctionin Subj ect g authority Amt involve d if any Dated initials of Auditor Remar Initials of ks SO/AAu O/ B.O 4 6 7 8 5 9 10 2. Entries in the register will be made by the auditor, responsible for audit. As soon as a sanction is transferred from ‘A’ dak register to this register an entry should be made in the former. 3. The register will be closed monthly and put up to BO with the following summary:1.No. of sanctions outstanding from previous period. 2. sanctions received during the month Total……….. 3. Sanctions disposed of during the month (here give the month to which sanctions relate) 4. Balance outstanding at the end of the month. The register need not be put up to Pr.Director of Audit. This register need not be maintained in div.offices. It will be responsibility of the HQRS. section to deal with and pursue all sanctionsto finality. Principal Director of Audit, Central Railway 344 ANNEXURE – 47 (PARA 581) General Manager’s sanction Register Code Word (GM’s) 1. This Register should be in the following form and used for one years to be preserved for 20 years. Sr. no. & date 1 2. Letter From no & whom dt. received Subject 2 4 3 Dated int. of Ar receiving the letter 5 File no or SO’s/AAu compilation O int. no. Remarks 6 8 7 The register should be closed every month and put up to B.O with a summary similar to the one in the case of Railway Board’s Sanctions. The register need not be put up to Pr.Director of Audit Separately. Office Manual 345 ANNEXURE – 48 (PARA 581) Heads of Department sanction register (code word HDS) 1. This should be maintained in the same way as GM’s sanction register and used for one year. To be preserved for 20 years. 2. Separate register should be maintained for each section to note the sanctions received from the General Manager and the Heads of Department. The register should be written up by the Central Receipt Section. Principal Director of Audit, Central Railway 346 ANNERXURE – 49 (PARA 581) Register of outward correspondence & reminder to be issued code word ROC. SR. no. 1 Reference to inward diary if any 5 No.& date of letter 2 To when addressed 3 Date of reminder 6 Subject 4 No. &date of interim/final reply to CAG 7 Initials of SO/AAuO 8 The register should contain particulars of all letters to which a reply is necessary, issued of the following authorities. a. CAG b. B. FA&CAO c. Other offices A remark to the effect Do letter/reminder from Pr.Director of Audit to FA&CAO/HOD may be given prominently. Special letters under category (b) above will however to entered in the combined register for special letters/Part I. Audit notes/Inspection reports prescribed elsewhere. Letters requisitioning vouchers and files should not be entered in this register but should be watched separately. In respect of letters which are issued as a result of reference from CAG and where a report to him is involved a brief note duly underlined in red ink should be made in Col. 4 below the subject as under. To be reported to CAG with reference to his letter no. date. These cases should be pursued vigorously and receive special attention during the monthly review. In order to keep the CAG informed of the progress of the case an interim report should be sent to him periodically say every two months. The register should be used and preserved for 2 years. The register should be put up to B.O. monthly in the following form. Date of submission Particulars Initials of Auditor a. SO/AAu O GO Procedure for issue of reminders In case of routine reference like enquiry for some information and requisitioning of vouchers: 1st reminder at SO’s level after one month from the date of issue of vouchers; 2ND DO B.O’s level 3rd Do Dy.Director’s level 2 month after issue of the reference 4th Do Dy.Director’s level 2 month 15 days after issue of the reference Office Manual 1 month 15 days after issue of the reference. 347 5th Do Pr.Director of Audit 3 month after issue of the reference If no reply is received after a fortnight from the date of issue of 5th reminder, the matter should be reported to the Pr.Director of Audit in a self contained note for bringing it to the notice of the HOD concerned in the next HOD meeting with the General Manager. b. In case of special letters. PartI I Audit Notes Pt. in Inspection Reports 1st reminder at BO’s level After six weeks from the date of issue 2nd DO reminder t BOs level After a fortnight from the issue of 1st reminder 3rd reminder at Dy.Director’s reminder After a fortnight from the issue of level 2nd 4th DO reminder at Dy.Director’s reminder After a fortnight from the issue of level 3rd 5th Do reminder at Pr.Director to After a fortnight from the issue of Audit’s level Fa&CAO 4th reminder After a fortnight from the 5th reminder, ADO reminder will be sent to Sr. Dy GM. If a reply is not received after a fortnight thereafter, the case should be submitted to the Pr.Director of Audit. In the case of all references objection etc. where besides the accounts department executive departments are also concerned, copied of the reference and the reminders should also be endorsed to the concerned executive departments as well with a request to send their replies through the Accounts Department. The references objections etc/ on which replies havenot been received should be discussed in the monthly Tripartite Meeting after issue of the 3rd reminder and such items be included in the agenda from our side for this purpose. If interim replies are received in the meanwhile the issue of the next reminder may be postponed for a fortnight but shall be issued at the prescribed level e.g. if an interim reply is received after the issue of 2nd reminder at BO’s level. The issue of 3rd reminder may be postponed by a fortnight from the date of the interim reply. Principal Director of Audit, Central Railway 348 ANNEXURE – 50 (PARA 581) Register of Pending Cases (Code word RPC) 1. The register should be maintained the form given below. The register should be used for 2 financial years and preserved for 2 years. Form Sr. no. Case no. & File No 1 2 Subject & required 3 action Action taken 4 2.Separate section with the following five columns in the register in respect of cases wherein report/information is required to be furnished to the CAG should be opened. 1. Cag’s letter no, and date 2. CA/DCA/BOs orders there 3. The target date by which report is due to CAG 4. When the report was sent 5. Remarks 3. The register should be put up to Bo fortnightly, Dy.Director monthly and Pr.Director of audit quarterly. Month of Date submission 1 Office Manual 2 Record of Dated initials BO submission ref. So to item pending in the register 3 4 5 349 ANNEXURE -51 (PARA 581) Register of recoveries at the instance of audit (code word RCA) The register should be maintained in the form prescribed below. Each register should be used for two financial years and preserved for 3 years. The central register maintained in the C.O.R. section should be retained as a permanent record. 2. The register should be put up to BO quarterly i.e. 1st week of April, July October and January. 3. The register should be colosed annually and a return in proforma (vide annexure 23 forwarded to the COR section by 15th of May each year duly accepted by the Accounts office. Proforma for Recovery Register (a) = as a result of audit of Transactions already checked by Accounts (b) = other than (a) SR. no. Sn./DNS 1 2 Total No. of Cases Pay & TA Bills Cont. Bills 3 4 Misc. Bills 5 Amount actually recovered or agreed to Amount recovered as a result of further review by be recovered by Accounts office Accounts Pay T.A.Bills Contractors Misc Bills Pa T.ABills Contractactors Misc.Bills Bills y Bills 9(a) 9(b) 10(a) 10(b 11(a) 11(b 12 9(a) 10(a) 10(b) 11(a) 12(b ) ) ) Amount recovered as a result of further review by Accounts T.A. Bills Contractors Bills Misc Bills 12. 13. 14. Principal Director of Audit, Central Railway 350 Signature of Bo 15. ANNEXURE -52 (PARA 581) Registerof petty objection (code word RPO) The register should be in the following form and used for 2 years. Each register should be reserved for 3 years. Record of submission Month Date of Date of Reference to SO/AAuO submission return from items to CAO CAO 1 2 3 4 5 BO 6 Record of petty objections Sr. Reference to Date Rules under Amount of Particulars no. Vr. No. & objection of objection which Month’s to be objected A/cs on recorded which under initials objection is of Audit based. Officer 1 2 3 4 5 6 Recovery by the Orders of Pr.Director FA&CAO after Audit scrutiny and review to be recorded under the initials of A/cs officer 7 8 of Remarks if any 9 Register to be put up to BO quarterly i.e. 1st of Feburary, May ,August, and November every year, but each entry of waiver should be attested by the appropriate authority under the relevant provision of Audit code.(c/f para 250 ibid). A sufficient number of pages should be set apart for recording separately the item relating to each subsection in the Accounts Office. Register should be sent to FA&CAO for remarks on the 1st February, May ,August and November every year. Office Manual 351 ANNEXURE – 53 (PARA 581) Register of Important orders and Decisions (Code work ROI) 1. The register should be maintained in the following form. 2. The register should be put up to the AAuO/SO(A) monthly and Bo quarterly. 3. The register should be preserved permanently. 4. Important orders of the Govt. of the India, Railway Board, CAG(Rlys) and other orders issued by the Pr.Director of Audit, Dy Director, B.O. pertaining to the section and which have not been codified should be noted in a classified form in the pages separately allotted for the purpose. 5. The précis of important orders should be drawn up by the SO/AAuO and the classification should be drawn up the B.O. These orders may ultimately form the basis for issue of correction slips to the office manual. Index Pages 1. Record of submission 2. Summary of important orders a. From the Govt. of India & CAG/ADAI(Rlys) b. From Railway Board c. Issued by Pr.Director of Audit/Dy.Director/B.O. Summary of important orders Sr. no. File no. Brief summary 1 2 3 Initials of staff in token of having noted the orders 4 Notes:-Same proforma should be used for all the three categories mentioned above. Principal Director of Audit, Central Railway 352 ANNEXURE – 54 (Para 581) Register of Review of Account Office Work (Code world RAW) The register should be in the following form and used for 2 years. The register should be preserved for 3 years. 2. Instruction contained in Para 139 et. Seq. of RAM. (3rd edition) should be born in mind. Index Review for the Page no. Review for the years In the register the following details should be recorded. Review for the year S. No. Particulars 1 A Items common to all Branches Remarks 2. B Item pertain to various sections and branches 3 C Special items 3. The register should contain items. Mentioned in the Secret Memorandum and any other item specially introduced. 4. At the commencement of every year , a list of all the items to be seen in the course of the annual review of Accounts Office work should be compiled by the section concerned and noted in the register. The B.O. should examine this list to see that it not only covers all the items which should be reviewed in the course of the work (C/F para 58 of secret memorandum) But also that all the sub sections of the Accounts Office are brought within its scope. The list of items should be compiled with reference to Accounts Office Manuals wherever necessary. P.O.O. issued by the FA&CAO which are received in the COR Section should also be taken into account so that any organizational chages in the Accounts Office are not left unnoticed. The Register maintained in the Accounts Office to watch final disposal of Audit notes and Inspection reports, special letters should be reviewed in audit every month and cases of omissions taken up. This may be noted in the progress Report Register. After the results of the review are incorporated in the register, it should be put up to the Pr.Director of Audit Important items from the register should be considered for inclusion in the ‘Report on the efficiency of internal check’ (P.O.Os 699 dated 21-9-78, dt, 1-8-60, 754 dated 16-3-61 and 776 dated 25-7-61) Office Manual 353 Annexure - 55 (Para 581) Original Audit register by Gazetted Officers/Sos Code O.A/GO For Gos) O.A/SO For SOs Post Review register by Gazetted officers/SOs Code PR/GO PR/SO The register should be maintained in the following form and used for 2 years. Index of work done Month Section concerned of Audit 1 2 Units work 3 of Date of Reference to BO/CA page Nos. completion of work 4 5 6 Record of OA/PR done Month Name of Officer Audit 7 8 of Units work 9 of Particulars of documents Audited reviewed 10 Remarks of Final the office disposal with dated initials 11 12 Note: In the casse of PR register Col.6 may be utilized for remarks of the section also. If the B.O. is in charge of a section at HQ and a division he should maintain two registers for O.A. one for HQ & another for Division. If an officer is in charge of 2 or more sections at the same place he may maintain a single register only for all sections. Only the important results of O.A. should be submitted to C.A. The register maintained by SO should be reviewed by GO in charge of the section. Audit Officers and section Officers of intensified inspections should maintain the register of original audit to record the results of original audit done by theduring the inspection. The registers of Audit officers should be submitted to theChief Auditor every month through the COR section. The registers of SOs should be submitted to the CA through their inspection officers (C/F para 229) Section Officers incharge of inspection section wholly should maintain separately the original audit Register to record the results of original audit done by each of them during inspection. The original audit register of BOs should be submitted to the Chief Audit while those of SOs should be submitted to the BOs every month, as required in para 149 of RAM. (P.O.O. 699 of 21.8.59, P.O.O. 699 of 9.7,61, P.O.O. 1023 of 23.12.75). Principal Director of Audit, Central Railway 354 ANNEXURE -56 (PARA 583) PERIODICITY OF SUBMISSION OF REGISTERS Sr.no. 1 1 Anne x no. 2 5 2 6 3 18 4 22 5 23 6 26 7 27 8 28 9 36 10 39 11 40 12 41 13 42 14 43 15 44 Office Manual Name of the register 3 A Dak Register(code A Dak) ‘B’’C’ Dak Register (code B Dak C Dak0 Register of Important Resultes of Audit (code word RA)(Report) Register of draft Paras (codeword FS/DP)(Report) Register of Potential Draft Para cases (code word RAP) Register of Review of Contracts (code word RRC) Register of Review of Implementation of contract’s (code RIC) Register for Review of the Productivity Tests done by the Administration Register of Progress of Inspection (code word RPI) Divins. Etc. Calendar of Returns (code word CR) Progress Report Register (code word PR) Sectional Register (code word SEC) Selection register(code work SLR) Current Review register(code word CRV) Register of Periodicity as per office Manual 4 5 Monday Monthlt BO Every week every month End of Qtr.i.e. in April, July, October, & Jan. Pr.D.A. Not shown -do- -do- -do- (maintained by Report section) 10th of month Qterly.i.e. 10th Apr./July/Oct/Jan. B.O. Pr.DA Every month Half yearly 1st April/October POOs 1055 & 1074 BO Monthly Quarterly15th of May/Aug/Nov/Feb/Hal f yearly 15th Feb & August BO/Pr.D -do 1st week of every month During his visit to BO Pr.DA Every week on Monday 10th of every month B.O/Dy.D/Pr.DA Every month Every month/quarter B.O Every month Quarterly last week of April, July, Oct, &Jan. i.e. B.O Pr. DA occasionally Not shown Every month on 10th B.O Once in quarter i.e.Jan/April/July/October Every month on 10th B.O Every month Monthly B.O Every month 355 of To whom due every Periodicity 9POO 1096 of 20.6.84 6 Every month No. BO/PR.DA-- 16 45 17 46 18 47 19 48 20 49 21 special letters part I Audit Notes &Pt.I Inspection reports (code word AN/I) Register of Pt.II Audit Notes/Inspectio n Reports & Rough Audit notes (code word AN/II) Register of sanctions received from Railway Board (code word RBS) General Manager’s sanction register (code word GM’s) Heads of sanction Register (code word HDS)Section Register of Outward correspondence & reminders to be issued (code word ROC) Every month Qtr.i.e. Jan/April/July & October Monthly B.O Monthly B.O Register should written up by Central Rect. be the Every month qtrly.Jan/April/July/Oct Monthly B.O 50 Fort nightly 22 51 23 52 Qtrly last week of April/July/Oct/Jan. Qtrly.i.e. 1st of Feb/Aug/May/Nov. B.O/Dy.D/Pr/DA every month Qtrly B.O 24 25 26 53 54 55 Every month Principal Director of Audit, Central Railway 356 Every month qtrly.Jan/April/July/Oct Every month B.O SO/BO i. Register of original audit by G.O & S.O (code OA/GO(For GOs) (OA/SO for Sos) ii. Post review Register by GOsSOs (code word PS/SO) Every month quarter i.e.Jan/April/July/October . Important results of Original Audit should be submitted to Pr. Director of Audit The register maintained by SO should be reviewed by GO in charge of the Section. BO’s to Dy. Director PR/GO, & SOs to B.O monthly Qtrly Every month Every month
