Railway Hand Book On Internal Checks

HAND BOOK
ON
INTERNAL CHECKS
2015
RAILWAY ACCOUNTS
Canons of Financial Propriety

These rules also known as Canon of Financial Propriety are the
guiding principles to be followed while incurring any expenditure
from the Public Fund. Therefore, due regard must be paid to these
golden principles as given below:
(1)
(2)
(3)
The expenditure should not prima facie be more than the

occasion demands, and that every Government servant should
exercise the same vigilance in respect of expenditure incurred
from public moneys as a person of ordinary prudence would
exercise in respect of the expenditure of his own money.
No authority should exercise its powers of sanctioning
expenditure to pass an order, which will be directly or
indirectly to its own advantage.
Public money should not be utilized for the benefit of a
particular person or section of the community unless
(I)
The amount of expenditure involved is insignificant;
or
(II)
A claim for the amount could be enforced in a court of
law; or
(III)
The expenditure is in pursuance of a recognized
policy or custom.
(4 )
The amount of allowances, such as traveling allowances,

granted to meet expenditure of a particular type, should be
so regulated that the allowances are not on the whole sources
of profit to the recipient.
ix
INDEX
S. NO. Chapters
Page No.
1.
Financial Scrutiny of proposals;
2.
General Bills
33
4.
Budget
82
3.
5.
A.
Works &
B. Establishment
Contractors Bills
Inspection
6.
Stock Verification
8.
Bills Recoverable
10.
Checklist for Workshops Accounts
7.
9.
11.
59
101
181
Establishment Matters
209
Books Section
265
Traffic Suspense
254
289
293
xi
Chapter 1
SCRUTINY IN FINANCE SECTION

A - Works

Though specific points need to be scrutinized for different
type of proposals yet the canons of financial propriety is to be always
be kept in mind. As a basic principle, if a proposal is received for a
new work which has not been done so far or work is proposed to be
executed through different method, financial scrutiny should be very
deep. Following is the list of important points to be seen by Finance
Section while scrutinizing different type of proposals and estimates.
1.
estimates
i.
Abstract Estimate
Detailed justification is provided by the branch

officer.
Indication of completion period and currency

of the work is given.
The cost of work with reference to competency
of sanction i.e., GM/DRM, exists.
Detailed allocation has been recorded.
Basis of rates and correctness of related

quantities is given by the department.
Calculation of ROR for remunerative works is

calculated (Para 202 of FI)
Arithmetical accuracy.
For Out Of Turn works, reasons for urgency

have to be placed on file.
(Para 1104 E )
ii.
Detailed Estimate
Following points needs consideration while checking

detailed estimates:1
Hand Book on Internal Checks (Railway Accounts)

Whether the estimates are based on LAW

Book, Pink Book, SRSF (Green Book) with
detailed justification. The estimate vetted
should be endorsed in the Pink Book against
that item by the Finance Section.
Detailed estimate has been proposed in the

prescribed format (Top sheet, detailed sheet
with Works, Stores and Freight portions)
Check of rates; whether they have been taken
properly, the basis of rates has been given.
Plan(s)/Drawing(s) is/are approved.
Certification of quantities is based on realistic

field requirement of the work as per Plan and
Drawings.
Rates taken are based on last, lowest, latest

accepted rate for the similar works. This
is also to be ensured that rates taken are
not restricted for LAR purpose by the TC on
previous occasion.
Sub-estimate of the other concerned
department are also available in details in the
prescribed format (works, stores, CRRM)
The competent authority has signed the
estimate sheet and top sheet.
Allocation wise clear break-up has been
shown.
Necessary auxiliary provisions made are as

per prescribed rate and are on absolutely
realistic basis (contingency, D&G etc.)
Check of scope of works with respect to

Abstract estimate and Reference of approval
by the competent authority has been linked.
Clear fund certificate towards availability of
funds during the year is obtained.
Scrutiny in Finance Section
The estimate is arithmetically accurate.
In addition, the divisional finance should make its own rate

master that should be jointly vetted by accounts and executive.
Deviation statement with clear demarcation

for cost escalation and quantity variation
is recorded so as to ensure appropriate
competency of sanction.
M&P items should not be clubbed in the works

estimates.
All the provisions in the estimate are as per

Rly. Boards circulars issued from time to time.
(Para 703-E)
iii.
Track Estimates
While checking the proposal of Track estimates,

following points are to be kept under consideration:-
Annual GMT and total GMT carried over that

line since last renewal in terms of IRPWM.
Wear and tear of rails, sleeper in terms of
IRPWM.
Quantity assessment of Ballast in terms of

IRPWM (route, cushion and movement of
Rolling Stock)
Whether secondary or primary renewal?
Avoidance of separate rail renewal and sleeper

renewal for the same section.
Check of estimate against inclusion of M&P

items, fancy items, small machines etc.
Similarly the revenue work should not be
charged to track provisions.
D&G and other miscellaneous provisions are
reasonably worked out.
Realistic assessment of TRD and S&T sub

estimates.
3

Rates for same type of estimates to be seen.
Compliance of FA&CAOs observations on

these matters from time to time should be
ensured.
It should be seen that track work of the KMs
sanctioned are not operated in different KMs
and there is no duplicity in execution in the
same place.
( SOPWCR 1.01)
1.
M&P AND RSP PROPOSALS
Scrutiny of justification.
Whether as a result of mechanization any reduction in

Manpower is possible or not?
If the M&Ps are being procured on the basis of

Guidelines of Rly. Board or Inspections, the copies of
such Guidelines and Inspections should be enclosed.
It should be seen that RDSO guidelines are issued with
the approval of Railway Board.
Allocation of the expenditure has been clearly shown.
Whether the M&Ps proposed on replacement a/c, if

so complete details of Condemnation of previous one
enclosed.
Check of replacement vs. reconditioning analysis

(Para 240 F I)
The rates have been taken as per prevailing market
rates.
Whether the Procurement or Replacement is likely

to effect expenditure on items i.e., Manpower and
maintenance.
Introduction of a machine for the first time should be

scrutinized thoroughly. The source should be sound
having proven utility.
2.
QUOTATION PROPOSALS
Quotations are exceptions to the tendering rule, therefore,

need to be resorted sparingly. Following points need
consideration while examining quotations:-
Reasons for dispensing with calling of tender.

Justification for calling of Quotation.
Whether the quotation has been invited as per Rly.

Boards circulars.
Reference to the enquiry letter.
Approval of the competent authority for inviting

quotations.
Number of offers received (minimum three offers)
Whether the quotations have been opened properly

and on due date.
Whether the proposal is for fancy and furnishing

items.
Reference to the comparative sheet.
Net cost of the work.
Certificate of suitableness, reasonableness, technical

suitability and rate reasonability is submitted for the
valid lowest offer.
Repair is not for condemned items.
Competency of the sanction in terms of item No 14(a)

of SOPWCR Part E.
Availability of funds.
Adherence to annual ceiling limit of sanctioning

authority in the financial year. Ref: SOPWCR1.15 and
Remarks contained therein.
(Item No. 2.7.4.1 of B.S.Sudhir Chandra

Committee along with Para 1211E and Item
1.15 of SOPWCR)
3.
REPAIR PROPOSALS
Following details are required for consideration of repair

proposal:-
Date/cost
of
commissioning.
procurement,
installation/
Repair proposal is not for items which have been

condemned.
The nature of the work done by machine and

prescribed life of the machine.
The prescribed life of asset and work done by the
asset.
Whether the machine is covered under warranty if so,

period of warranty.
Instances of earlier repairs, amount spent on its
repair/maintenance till date, last similar repair,
agency and mode of tender. Comparison between cost
of machine and repair cost.
Date of breakdown of the machines and how the work
is managed after the breakdown.
Justification for the work and mode of tendering

system i.e. open, limited or single; is given. Possibility
to get most competitive rates/conditions must be
explored.
Administrative approval of the competent Authority
exists.
Cost benefit analysis indicating repair cost and
enhanced life of the machine. It should be worth
spending on repairs so that life & performance of the
asset increases commensurately.
Division accountant vetting in case of divisional

proposals.
Reasonability of rates to be certified and should match

with the last accepted rates or actual expenditure.

Warranty for satisfactory working after its repair.

Competency of sanction and arithmetic accuracy.
Availability of fund.
- (SOPWCR 6.35 for general repairs)
4.
HIRING OF VEHICLE PROPOSALS
Administrative approval of DRM/ADRM/competent

authority is available.
Financial justification for hiring of vehicles exists.
Whether spare vehicles are available with the

department from where the requirement can be met.
Condemnation certificate is available if the hiring of

vehicle is proposed on that ground.
How the work is presently being managed.
How the cost of hiring has been worked out. Whether

the budgetary quotation/LAR has been obtained.
(SOPWCR 6.14, SOPWCR 6.15)
(a)
Bds Letter NO. E(G)2007/A14/6 dated 0808-07.
(b)
Bds Letter NO. CE-II/Genl/I dated 27-052002.
(c)
Bds letter No.F(X)II-2010/PW/2 dated 1110-2010
5.
AMC PROPOSALS
When were the machine /equipment procured and

original cost of machine/equipment?
Whether the machine is under warranty period, if so
the details thereof.
Administrative approval is obtained from competent
authority.
Whether AMC
comprehensive.
is
comprehensive
or
Non7
Why it cannot be maintained departmentally.
(SOPWCR 6.01)
6.
CASH IMPREST PROPOSALS
Following points are to be checked while scrutinizing the

proposal for cash imprest or extension or enhancement.
Proper justification is given. Imprest is an amount

where pre-check is not carried out. Therefore, the
provision should be barest minimum.
Whether the proposed imprest is bare minimum

to meet emergent requirements of the office. The
monthly/seasonal fluctuation in need of imprest is
observed.
Whether the provisions of Para 1050 to 1055 Finance
code volume I are complied with.
Actual amount of payment made during the past six

months, if enhancement of cash imprest proposed.
Proposals on the plea of delays in recoupment should
not be entertained; action should be taken to expedite
recoupment.
Competency of sanction for the imprest.
In case of new cash imprest, the proposal should be

initially for a temporary period subject to review
after a period of six months or so.
Cash imprest for safety/disaster management should

be dealt as per Railway Boards guidelines.(Para 1050-1055 F1, SOPWCR 6.43)
7.
MISC. PROPOSALS
Proposal other than Supplementary Work Orders, Estimates,

M&P Proposals, Indents, M.S., Finance Establishments,
Quotations and brief Notes:-
The proposal of Misc. nature other than quoted above

received in Accounts office are examined as per
circulars issued by Rly. Board, HQ and with specific

reference to schedule of Powers.
Scrutiny of financial justification is carried out with

reference to provisions in Finance code connected
rules, orders and instructions.
8.
BRIEF NOTES SCRUTINY
Following factors have been kept under consideration while

undertaking brief note scrutiny:-
Rates reasonability, quantity justification and funds

availability should be seen simultaneously.
Tender Number.
Name of work.
Reference to sanctioned Estimate with copy on

record.
Copy of the NIT along with uploading of NIT on
official website and newspapers cuttings in which
advertisement appeared showing date of publication
etc.
Original copy of M.R to purchase Tender documents.
Number of tender forms sold /received.
Validity date of offers.
Tender time table.
Number of NS items included and whether the rate

analysis is vetted duly approved by SR.DEN/CO.
Approval of NS item by competent authority.
Requisite amount of Earnest Money.
Whether E.M. is in valid and acceptable form
No over writings and corrections and whether these

are correctly examined and signed if found.
Description of eligibility criteria & reference of the

case file.
9

10
Description of Bank solvency & reference thereof.
Details of the T&P and Machinery and Human

Resources submitted by the Party.
Administrative remarks on special conditions

submitted by the Party & evaluation of special
conditions.
Last accepted rate of the similar work in the same or
contiguous area.
Last, lowest, latest LAR is given.
Any special reason or unusual factor with respect to

acceptance of last rates.
Comparative position with the last lowest, latest

accepted rate and the average accepted rate.
Any error in the tender document and Comparative
statement.
Percentage variation between sanctioned Estimate
and lowest offer received and reason thereof.
Basis of rates for items in Tender Schedule.
Deviation statement between sanctioned estimate

and the tender schedule in terms of No. of items,
quantity and rates.
Special Conditions with financial implications in the

Tender Documents to be checked and indicated for
TC.
Reasons for variation between NIT Cost and the
lowest offer received.
Legal vetting of Joint Venture documents or any deed
etc. having legal implication.
Any other reason.
Briefing note should be prepared in duplicate,

checked and signed in the Executive office. In the
accounts office, the facts & figures are checked and
verified as also signed by the competent authority.
One copy of the Briefing note duly verified & signed

should be returned to the concerned department and
the accounts office retains second copy.
(Para 1254 E, 613 F1)
9.
Vetting of Contract Agreements: -
After the acceptance of the tender, the contract agreement is

received for vetting. The following checks are required: Only the copy for Accounts of the contract agreement
is to be vetted.
If all above requirements are met, the cover page of the

agreement is to be vetted.
10.
PROPOSALS FOR VARIATION IN CONTRACT VALUE
Any variation in excess of 25% of the total value and individual

item and overall value in a contract, will require finance
concurrence. The variation proposal is treated in the same
way as a fresh proposal and all the checks to be exercised on
a fresh proposal are to be conducted on a variation proposal
also. In addition to this, the following checks are also
exercised:-
The budget allocation on the cover page is as per the

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

book, the concerned Law book/ Pink book item no. is
mentioned on the cover page.
The rates in the agreement are as accepted by the
tender committee and specific recommendations are
incorporated in the agreement.
The Works Accountant has verified the agreement
and put the sign on it.
The competent authority along with the contractor
has signed the contract agreement.
- (Para 1259 E)
11
i)
The variation case should be furnished in the requisite
format. i.e., duly showing the original scheduled
quantity, rate, amount, the revised quantity, amount
and the savings/ excess, both in absolute and
percentage terms.
ii)
The variation statement should bear the signature of
concerned Executive as well as the Contractor.
iii)
The Contractor furnishes No Claim Certificate
regarding savings and non-operation of items.
iv)
The original case file along with sanctioned estimate,
the Tender Proceedings and Agreement copy are
submitted along with the proposal for variation.
v)
All the items where the variation is above 4-5 %
should be explained in detail.
vi)
All excess items above 25% over the scheduled
quantity should be worked out on the basis of current
rate/ LAR.
vii)
If specific rates are mentioned in the TCP, for excess
quantity, it should be ensured that only these rates
are adopted for excess quantity.
viii)
Any specific comments by the tender committee
should also be borne in mind while processing the
variation proposal.
ix)
Approval of competent authority exists for the same.

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

Concurrence / vetting letter is prepared and put up for
approval and signature of the Competent Authority.
- (Para 1268E)
11.
VETTING OF INDENTS/ REQUISITIONS.
The following checks are required for vetting the indents.
i)
It should be ascertained whether requisition has also
been processed for the same item in the recent past.
12
ii)
If it is a new proposal, the same is given In-ward no. by
feeding all the required information on the computer.
iii)
The requisition should be accompanied with a top
sheet and all the requisite details should be duly filled
in.
iv)
If the requisition is for items, which is being regularly
procured every year, the consumption of last three
years should be furnished in the top sheet.
v)
If the requisition is being processed for a new item
for the first time, detailed justification, as to the
background for procuring the item is required,
alternately the requisition should be accompanied
with the copy of competent authoritys sanction with
the finance concurrence in terms of various schedule
of powers delegated by GM.
vi)
If any item is being procured in large quantity for the
first time, the procurement should be supported by
the policy decision /sanction/already certified by an
agency appointed by Railway Board and tested on
trial basis.
vii)
If a pink requisition is being processed, the requisition
should be accompanied with the original sanctioned
detailed estimate, wherein there is a provision for the
same.
viii)
If any of the above details is not fulfilled, the indent
will be returned with specific remarks duly taking
the approval of SR.DFM on a office note/ returning
letter.
If all the above requirements are met, the requisition is vetted by

putting the enfacement on the original requisition along with a
covering letter. Simultaneously an enfacement is also to be made on
the original estimate as a token of the item being vetted. The same
detail is also entered in the vetting register and put up for SO and
SR.DFMs signature.
( SOPWCR 6.27, SOPWCR 2 )
13
12.
LAND LICENSING
While checking the proposals for land licensing, the following

points should be considered:-
Licensing of Railway land is permitted only for

purposes directly connected with the Railway
working and with the personal approval of the GM
and personal concurrence of FA&CAO.
The proposal should bring out clearly the details of

the land to be leased/ licensed. The diagram/plan,
period of lease to be indicated.
Particulars of the party to whom the land is to be
leased.
A certificate that the land proposed to be licensed/

leased is vacant and not required for use of Railways
in the future.
Certified Documents relating to latest market value of
land from Revenue authorities.
The recovery of leased rent/license fee should be

worked out based on the above documents. The
license fee will be fixed as a percentage of the market
value of the land being licensed.
Railway Boards policy letter, governing the mode

of license fee/lease payable by the party, should be
linked.
(Chapter 10 of ENGG CODE.)
- Rly Bds Letter No. 2005/LML/18/8 Dtd. 10/01/05
- Rly Bds Letter No. 2005/LML/18/8 Dtd. 08/06/05
- Rly Bds Letter No. 2001/LML/24/20 Dtd .16/08/05

13.
Opening of Tenders
Tenders should be opened, at the specified time, date and

place by the officer nominated for the purpose. All advertised
(Open) stores tenders must be opened in the presence of
a representative of the Accounts Department. Whether
14
limited stores tenders should be opened in the presence of a

representative of the Accounts Department and if so beyond
what minimum tender value, may be decided by the Railway
Administration in consultation with the Financial Adviser
and Chief Accounts Officer. The key points to be observed
while opening tenders are mentioned below for guidance:(i)
Tender should be opened by nominated executive at

the prescribed time, date and place in the presence of
accounts representative.
(ii)
Initial (with date) the cover containing the tender. All

the tenders should be counted and marked 1/n.2/n..
N/n (n=total numbers of tender forms received against
NIT) Immediately after opening the tender, each page
of tender form should be machine numbered and date
stamped.
(iii)
(iv)
(v)
(vi)
(vii) Mark and initial all over writings in red ink. The
corrections, overwriting and omissions should be
serially numbered and the total number of such
Initial (with date) front cover page of the tender

and every page of the tender on which the rates
or special tender conditions are quoted. All the
tender documents should be machined numbered,
credentials submitted should be numbered and
mentioned in the tender register.
The names of the tenderers and the rates quoted
by each tenderer should be read out, wherever
practicable, to the tenderes or the representative who
may be present at the time of opening of the tenders.
Initial (with date) all corrections in the schedule of

quantities, schedule of materials to be issued and
specification and other essential parts of the contract
document.
The rate quoted in figures and words should be

circled in such a manner as to not leave any space
after starting or ending digit.
15
corrections etc. should be clearly mentioned at the

end of each page of the schedule attached to the
tender and attested with date.
(viii)
Clearly indicate on each page of the schedule attached
to the tender, any ambiguities in rates quoted by the
tenderer in words of figures.
(ix)
(x)
(xi)
Specifically record whether samples submitted or not

along with the tender.
All the information of each tenderer, viz. rate, special

conditions, credentials, validity of offer, EM details
etc. should be recorded in the tender NIT wise.
While opening the tenders, no opportunity should be

given to any tenderer to repudiate, amend or explain
the rate and/ or any condition quoted in the tender.
(xii) Delayed tenders i.e. tenders received before the time

of opening but after the due date and time of receipt
of tenders should also be opened and dealt with in the
same manner as tenders received before due date and
time.

(xiii) Late tenders, i.e., tenders received after the specified

time of opening should be opened by the concerned
Branch Officer in the same manner as tenders
received before due date and time and marked as
such in red ink prominently on the envelop as well as
on the tender papers.

(Para 607- 610 FI)
(xiv)
A suitable remark in regard to both the delayed
and late tenders should be made both in the Tender
Register as well as the Comparative statement.
(xv)
If the rates are not quoted in words, it should be
recorded on the same page.

16
(xvi) Regarding Earnest Money, it should be seen whether

requisite EM is submitted in the prescribed form or
not. Otherwise suitable remarks may be offered in
the tender document.
(xvii) On front page of tender form an endorsement that

Tender forms contains pages from 001 to . Should
be made and initialed by executive and accounts
representative.
(xviii) Tenderers authorized representatives initials should

invariably, be obtained in tender register.

14.
Authority: FA&CAO/JBP Letter no. HQ/AC/FX/Inst

dated 21-01-2009
VETTING OF DETAILED ESTIMATE
I.
On sanction of work (PB or GB or LAW Book or GM-
OOT or Divisional Sanction etc.) the detailed estimate

for work should be prepared keeping in view the
scope of work and cost as envisaged in the abstract
estimate and submitted to the competent authority
for the administrative approval.
II.
Subsequently, detailed estimate should be submitted
to the associate finance for vetting. At the time of

associate finance vetting, copies of original proposal
of that work (PWP, LAW proposal etc.) should be
annexed for better appreciation. After finance vetting,
technical sanction of competent authority should be
obtained.
III.
The detailed estimate of a work should comprise of:
(a)
Narrative Report
Abstract sanctioned cost.
Sanction reference of work (no. & year of PB/

GB/BM-OOT/LAW. Divisional Sanction etc.)
Objective and brief justification of work.
Location of work execution (Deviations, if any,

w.r.t. sanctioned work should be brought out
along with reasons) and inspection report, if
required.
Scheme of execution of work and proposed

period of completion.
17
(b)

(c)

18
Head of the allocation and fund availability

position in current financial year.
Position of excess over estimates under the
heads escalation and other than escalation
w.r.t. abstract estimate and declaration about
presence of any material modification.
Detailed estimate no. and any other relevant
information.
Outer sheet:
The outer sheet of detailed estimate
containing abstract of the cost of work.
Summary sheets of sub estimates of various
departments.
Statements showing details of estimated
cost:
Sub- detailed estimates of all departments
involved.
Detailed estimate should segregate the
provisions in terms of cash and stores.
Executive should ensure that quantities are
based upon realistic work requirement in line
with approved plans and drawings (which
should be attached) Methodology and basis
for composition of quantities of major items
should be mentioned in the case file.
Detailed estimates should be prepared by
considering the current rates. Rates references
should be detailed out and attached in the
case file.
Over head charges like D&G, contingencies
etc. should be included on need basis. If these
charges are included at maximum levels,
this should be justified in terms of actual
requirements, References of extent RLY Bds
guidelines should be mentioned.
Labour charge should not normally be

included in the detailed estimates because
now days most of the works are executed on
contractual basis and rates are usually from
contractual works itself.
Fancy items like TV, VCR, Camera, laptop and
Projector etc. should not be provided in the
detailed estimates unless these are explicitly
provided for in the abstract estimates.
CRRM should be taken into account as per

existing condition of asset, if applicable .It
should be taken at current rates only.
Any element of foreign exchange involvement
should be brought out.
In respect of detailed estimates prepared base

on Survey Reports, it should be ensured that
the provisions made in the detailed estimates
are in conformity with the facilities proposed
in Survey Report; Survey Report should be
attached in these cases.
Deposit Work

(d)
In case of deposit works, the codal provisions

as applicable on case-to-case basis e.g. levy
of departmental charges, prior acceptance is
taken for bearing the departmental charges,
prior deposition of amount by the agency for
whom the work is to be executed, etc. should
be examined.
Variation Statement
During execution of the work there may be variation

in original contract value due to various reasons.
Mainly the variation in a works contract may occur
due to the reasons detailed below:19
(i)
Variation of the conditions of contract.
(ii)
Variation of the rates of items.
(iii)
Variation of the quantities of any items.
(iv)
Variations of the items.
While scrutinizing the variation proposal the following checks are to

be exercised:
20
Relative reasons and their genuineness.
Impact on inter-se-position is to be seen.
No undue benefits to contractor or any loss to railway

should be ensured.
If price variation clause is applied in case of works

costing more than Rs.50 lakh and the same is being
followed while working out the final varied cost due
to escalation.
Consent of the contractor has been obtained for the
said variation.
Necessary certificate has been given by executive.
Reasons for variation in individual items are not

contradictory. For example if dismantled quantity
has gone down, the quantity of removal of dismantled
muck does not go up.
Variations are not being proposed for profit making

items without adequate justification even if it is not
leading to variation in the contract.
Often variation in some items is restricted by the

tender committee due to various reasons it is to be
ensured that such restrictions have been observed.
As a consequence of proposed variation, the estimate
is not being exceeded so as to necessitate higher
authoritys sanction and if so the sanction is obtained.
Excess variation is not caused due to work being
proposed at some other site.
The reasons furnished do not give an impression that

the work has already been completed.
As a consequence of proposed variation, the

competency of sanction is not getting changed and
while concurring such variations, the appropriate
authority under whose sanction the revised value
will lie has been pointed out.
The limit for varying quantities for minor value NS

items shall be 100% (as against 25% prescribed for
other items.) A minor value item for this purpose is
defined as an item whose original agreement value is
less than 1% of the total original agreement value.
No such quantity variation limit shall apply for
foundation items.
For tenders accepted by General Manager, variations
up to 125% of the original agreement value (even
if the revised agreement value is beyond GMs
competence to accept tenders) may be accepted by
General Manager.
For tenders accepted by Board Members and Railway

Ministers, variations up to 110% of the original
agreement value may be accepted by GM.
The aspect of vitiation of tender with respect to

variation in quantities should be checked and
avoided. In case of vitiation of the tender, sanction of
the competent authority as per single tender should
be obtained.
(Bds letter No.2007/CE.I/CT/18/Pt.XII

dtd.31-12-2010)
An additional provision of Type- I quarter should

not be a reason of variation as the same are not to
be constructed any more due to implementation of
recommendations of 6th Pay Commission.
21
WORKS MATTERS DELEGATION OF POWERS FOR SANCTIONED

OF VARIATION AS ABOVE
EXTENT OF POWERS DELEGATED TO
HEAD QUARTER OFFICERS
DIVISIONAL OFFICERS
Item no.
Ref. to Rule
Nature of
Powers
PHOD/CHOD/
SAG
Other
officers
DRM/
ADRM
OTHER
OFFICERS
Bds letter
No. 94/
CE/-I/
CT/4 Dated
22.10.01
1.25(b)
Variation in
quantities
for the
contracts
accepted
by GM and
below.
Up to 25%
provided
the value of
contract is
still within
his powers of
acceptance.
SG/JA Grade/
Sr. Scale
Up to 25%
provided
the value of
contract is
still within
his powers of
acceptance.
Up to 25%
provided
the value
of contract
is still
within his
powers of
acceptance.
SG/JA Grade/
Sr. Scale
Up to 25%
provided
the value of
contract is
still within
his powers of
acceptance
NOTE:
1.
2.
3.
4.
22
For variation in quantities accounts concurrence will be

required if variation is in excess/ savings of 25 % of the total
value and individual item in a contract.
Chief Engineer (PHOD/CHOD) will have power to approve

these changes in contract approved by the GM/AGM and
Railway Board upto a maximum of 25 % of contract value or
Rs. 25 lakhs which ever is less for each individual contract.
Total implication of variation in quantities and variation of

items in a contract will be limited to 25 % of total value of
original contract. In case it is exceeding personal approval of
GM or higher authority which approves the original estimate
and in whose competence the enhanced value lies will have to
be obtained.
For controlling the payment in case agreemental value goes
beyond (+) 25%, a regulatory mechanism as part of the
contract shall be built in as part of contract itself. For the first
15 % increase in value beyond 25 % of agreemental value, the
rates will have a reduction of 2 % in the incremental value of
the agreement and for the next 10 % increase in the value,
rates will have an additional reduction of 2% in the further
incremental value of the agreement. The variation clause to
5.
6.
this effect will be included in all works contract.
In terms of Codal para 628-F1 & 1265 E the original

accepting authority should approve the variation provided
the total value of the contract is still within his power of
acceptance. If the total value goes beyond the competence of
the original acceptance authority, the sanction of the higher
accepting authority to be taken.
In case variation takes place due to variation in quantity,
contract has to be treated like a single tender.
-( SOPWCR 1.22 b )
23
B - Establishment
TEMPORARY AND PERMANENT POSTS
Following points are to be checked:

Whether the proposal is for extension or creation of post.
Status of sanctioned cadre and Men on roll.
Detailed justification for the proposal with reference to

workload and establishment already available.
Reference to the guidelines and instructions of the higher

authorities.
Is there no possibility of avoidance of the post concerned?
Position of divisional surplus bank.
Yard sticks and benchmarks, if any.
Whether the posts are for maintenance of existing assets or

new, if so details thereof.
Nature of post, temporary, permanent.
If the proposal is for extension of currency clear reference to

the previous noting with detail justification.
If the post is chargeable to Private Parties details of the same

on the items as under:
i.
Details of the previous payments.
iv.
Number of Leave Reserve /Rest giver required as per

yardstick.
ii.
iii.
Demand / application of the Party concerned.
Percentage of Leave Reserve./Rest Giver. as per

current cadre.
If the post is proposed under DRMs power, position of surplus

bank of the Division. A certificate of availability of the value
under the surplus.
Position of matching surrender if any.

24
If proposal is for half-yearly review of running crew, reference

to the actual hours of the crew should be made available on
file. Also the results of the review are seen.
Check of Proposal for arithmetical accuracy.

Competency of sanction of the post.
ii. WORKCHARGED POSTS (Gazetted and Non Gazetted)

The proposal should contain the following details:

Whether creation or extension?
If the post is work charged reference to the sanctioned

estimate for clear provision available.
Cost of the staff chargeable/ allocation/is it within D & G

charges provided in estimate.
Justification in terms of worth of charge, balance of work,
physical and financial progress of work. In case individual
works are taken to which the post will be charged, outlay of
the proposed work in that financial year.
Fund availability duly certified by works accounts including
details of estimate.
Details of specific provision against estimates to which the
post will be charged.
Department, Designation and grade of the post, number of

posts.
Period for which the posts are required.
Continuity of the post i.e. Date of creation, Date of operation,

validity.
The above should be administratively approved /certified by

the authority competent to do so.
The operation of posts should e minimum possible irrespective of

availability of provisions. The current level of work load should also
be checked. Normally, operation of group D should be avoided.
Procedure for Test-Check:
The Test check should, apart from verification and thorough

examination of facts and figures embodied in various documents
brought under test check, be directed to an intelligent scrutiny to find
25
out whether the clerk(s) understand their duties and rules governing
them and do the work allotted to them diligently and whether there is
any tendency to do the work casually. Test check should particularly
be conducted at least once in a month by SO and all officers. The test
checks should not be of routine nature rather they should focus on
system improvement, procedural lacuna and lapses. The underlying
idea should be efficient disposal without any violation of rules and
procedures. The checks should also reflect the updated skills of the
officer.
-[PARA 803 A1]
Recording of results of Test- Check; _
The result of test check should be recorded systematically in a

manuscript register in the form given below:-
SR
NO.
Item of
work test
checked
2
Extent of
Test check
prescribed
3
Particulars
of vouchers elected
for test
check
4
Name of the
SO/SSO (A)
who had test
checked the
item
5
Result of
Test check
Whether the discrepancy in col.6

has been pointed
out by the supervisory staff
7
The test check register should be opened separately by each official;

the test check is required to be made in accordance with these orders.
The entries made in the register should contain adequate particulars
so as to facilitate the identification of the entry/voucher subjected
to test check and entry/voucher should be endorsed Test checked
under the dated initial of the official conducting the test check. The
exact nature of the discrepancy noticed should be briefly indicated in
the appropriate column of the test check register. If the discrepancy
calls for a lengthy note, the same should be given as a separate note
for further disposal being done on the connected file(s) and a cross
reference to this note should be recorded in the relevant column of
the Test Check Register. The observations as a result of the test check
should be clearly indicative of the appraisal by the checking authority
of the quality of performance of the clerks whose work came up for
test check.
26
Test- Check of registers:

Another important item of test check is the inspection of different
registers by the Gazetted Officers. The intervals at which different
registers maintained in Accounts Offices should be put up for
inspection by Officers.
Periodicity of submission of Test- Check Register to Officers:
Every test checks register should be provided with an inspection

sheet below the front page indicating the month of test check, date on
which put up and the date reviewed by the Officer concerned. The test
check registers of Section Officers and Senior Section Officers should
be put up to the Branch Officer on the 10th of each month indicating
the test check done on the work of clerk in the preceding month for
review and orders, where necessary, by the Branch Officers.
Check list for variation statement
Items
1.
2.
3.
4.

Whether the following information are recorded

on the summery sheet of variation?
Yes/ No/NA
A.
B.
C.
D.
E.
F.
G.
Approved cost of the work.

Sanctioned estimated cost.
Physical progress of the work
Extended completion period.
Original cost of the C.A.
Revised cost of the C.A.
Value & percentage of variation with CA
value /Approved cost / Estimated cost.
Whether the prior administrative approval is
obtained from competent/tender accepting
authority for proposed variation?
Whether the item wise reason for the variation has
been recorded against each item of the Schedule?
Whether there is any variation in those items
which are restricted by TC/Accepting authority ?If
yes,
(1)
(2)
Whether the administrative approval of

next higher authority is obtained?
Whether detail reason is recorded for the
same?
27

5.
6.
7.
8.

9.
10.
11.
12.
13.
Whether it is certified that items where the

variation is on minus side will not be executed in
near future & at higher rate ?
Whether the NCC obtained from the contractor in
case of saving beyond 25 %?
Whether the provision of 2% deduction is made in
case of variation for more then 25% to 40% and
further 2 % for 40% to 50%?
In case, New NS item are included in variation,
following are required to be clarified.
1.
Whether the provision is made in the

sanctioned estimate?
3.
Whether approval of com. Authority is

obtained to operate the same?
2.
4.
Whether the LAR/Rate analysis is

submitted with supported documents
and signed by DA?
Whether it is certified that no undue

benefit has been passed to the contractor
by operating new item?
In case, the tender has been split up and awarded
to more than one tenderer, whether it is certified
that over all variation will not exceed by 25%?
Whether the reason for delay in execution of the
work is recorded and approved by C.A.?
Whether the variation is signed by controlling
authority, contractor and SSO/WA?
Whether the BG/performance guarantee in lieu of
SD is current and valid with validity date?
Whether it is certified that Inter-se-position is
not changed? If changed, vitiated amount will be
recovered from the contractor.
It is certified that all above item have been personally checked by the
undersigned
(Signature of Controlling Officer)
28
Check list for requisitions

01.
02.

Authority under which procurement is asked

SOPWCRGEN item.. (Sanction of competent
authority should be furnished, in case of other than
SOGEN)
Whether the following informations have been
furnished on the covering letter?
A.
B. Quantity
procured
particulars)
C.
04.
05.
06.
07.
08.
09.
Quantity purchased locally
(full
AAC as per proposed stock master of WCR
H.
03.
previously
G.
quantity
Major Group
E.
including
D.
Detail justification
justification.
F.
I.
Stock in hand
Stock In transit
Year wise consumption of last three years

Average life (In case of replacement )
Whether, the certification regarding SAFTY or NON

SAFTY item is endorsed?
Whether, the certification regarding REPLACMENT /

ADDITIONAL accounts endorsed?
Whether the copy of LPO/B.Q. is attached in support of
rates obtained ?
Whether the copy of instruction(s), guideline(s) of the

Rly Bd,s , HQ or RDSO is attached ? If referred.
Whether the urgency certificate is submitted? If

required.
Whether the PAC is submitted duly signed by
competent authority? If required.
Whether the technical clearance is obtained from
competent authority? If required
29

10.

1.
11.
Whether the correct allocation is recorded on indent?
13.
Whether the indent is signed by competent authority?

(SOPWCRGEN ref )
12.
14.
2.
Whether it is certified that item being

procured is not under RESTICTED category?
In case of RESTICTED item, whether prior

approval of competent authority is obtained
and submitted ?
Whether the funds availability is certified during the

current Year?
Whether the bill paying/passing authority is indicated

on indent?
undersigned.
(Signature of preparing authority)
CHECK LIST FOR TENDER SCHEDULE

01.
02.
03.
04.
05.
06.
30
Whether approval of competent authority has been

obtained for inviting tenders in terms of item no.1.17,
1.18 & 1.19 of SOPWCRGEN 2004.
Whether estimate is sanctioned & whether provision

exists for carrying out proposed work. (Reference to the
estimate and specific item under which the provision
exists for carrying out the proposed work to be given)
Whether a comparative statement for items in Tender
Schedule vis--vis item in sanctioned estimate has been
prepared and proper justification for the variation\
change in item, if any, have been recorded.
Whether clear site is available for work and whether approach to site is available.
Whether GAD is approved and whether structural drawings are ready.

Whether Special conditions proposed to be incorporated in the tenders especially conditions involving financial implications have been critically examined.

07.
Whether the proposed completion period of the work

has been assessed on a realistic basis.
09.
Whether items included in tender schedule are as per latest instructions and specifications.
08.
10.
11.
12.
13.
14.
15.
Whether all requisite items have been included in tender

schedule as per drawings and site conditions.
Whether quantities of items are realistic.
Whether rates adopted are realistic estimated rates. (Basis of rates adopted such as reference to Contract agreements and calculations should be kept in record and put
up to tender schedule accepting authority)
Whether rate analysis for NS items are realistic and as
per prevailing market rates.
Whether tender documents contain proper Technical

specifications.
Whether tender schedule has been technically examined

in drawing office.
Whether Tender schedule has been checked by SO(A/cs)
(Signature of preparing Authority)
NOTE: - The check list should be prepared in every case before calling
of tender and placed in respective file.

Items
1.
Whether it is certified that work is urgent in nature?
3.
Whether the reason for not calling tender is

endorsed?
2.
4.
5.
Whether the justification including quantity is

endorsed on the proposal?
Yes/
No/ NA
Whether the administrative approval is obtained

from the competent authority?
Whether the expenditure of work is within the
power & ceiling limit of the Sanctioning authority as
per SOPWCRGEN item No?
31

6.
7.
8.
9.
10.
11.
12.
13.

Whether the quotations are invited for those

items only, which can not be executed through any
existing contract including Zonal contract ?
Whether the quotation have been called from at

least three contractors working in that area ?
(Precautions must be taken to see that firms are
genuine, not factitious.)
Whether the reasonability of rates is certified
in compression to last accepted rates? (LAR, if
available, should be furnished other wise, rate
analysis should be given. If necessary, budgetary
quotation from dealers/firms should be obtained.)
Whether it is confirmed that no fancy items are
being provided in this work?
Whether it is certified that the work has not been

split up for the purpose of bringing it within the
ambit of dispensation ?
Whether the correct allocation of expenditure is

endorsed?
Whether the availability of funds has been certified
by the OS/SSO budget?
Whether the following documents are attached?
1.
Copy of approval
2.
Comparative
quotations.
4.
Copy of LAR in reference.
3.
5.
statement
along
with
History sheet of the item (In case of

repairing works )
Other relating, if required.
Check list for quotation work
undersigned
(Signature of preparing authority)
32
Chapter 2
GENERAL BILLS
1)
General checks for Passing of bills in XI Section: Following

major checks are prescribed during scrutiny and passing
of various bills received from Stores department .( These
checks are illustrative but not exhaustive):a)
It should be ensured that all bills must be in ORGINAL

format and duly signed by the competent authority.
b)
The bills are approved by competent authority.
c)
All the bills should be properly allocated & duly
budgeted.
d)
Wherever the duplicated claims are received, it
should be seen that the concerned officer has certified
that no payment has been made earlier and there are
sufficient, genuine and valid reasons for the claim
being in the duplicate. The concerned officer should
also submit non-payment certificate along with the
claim.
e)
Competent authority has sanctioned expenditure.
f)
The expenditure sanctioned for a limited period is not
admitted beyond the period without further sanction.
g)
Proper vouchers support the bills.
h)
The payment is recorded on the work order/ supply
order Misc. sanction so as to render second claim on
same account impossible.
i)
The charge are correctly classified and the prescribed
deductions (S.D. / I.T. / S.T. / ED. Cess / S.C / other
recoveries from contractor) have been made.
j)
The signature of officer drawing the bill agrees with
his specimen signature in addition to the general steps
mentioned above, following steps needs to be taken
care of while passing the bills falling under specific
33
categories as given in the following paragraphs:
2)
Local Purchase Bills.
(A)
Petty Bills: -
b)
General steps for passing of bills in XI Section.

a)
c)
d)
e)
a)
c)
(B)
The controlling Officer should accept the Bills.
All the bills should be duly allocated and budgeted.
The concerned officer should certify all duplicate

claims that the payment was not made earlier along
with Non Payment Certificate.
Besides the above following procedure has to be

followed for passing the bills under various categories.
Advertisement BILLS.
b)
All bills received should be in ORIGINAL duly signed

by competent authority.
d)
Copy of Advertisement Order issued by PRO for

placing the order is enclosed along with the bill
PRO is signing the bills for acceptance.
The paper cutting of advertisement tender is enclosed

along with the bill
Current DAVP rates as applicable to Govt. depts. are

levied.
(C)
News Paper Bills
It is seen that number of news Papers /magazines are within

the limit under SOPWCRWCRGEN.Bills prepared as per
prevailing rates. The period of bill is verified with previous
bills for ascertaining the rightness of claim.
(D)
Washing Bills.
It is to be seen that as per the contract agreement the rates

as applicable are being charged. Bills received are as per
the standards forms laid down for running bills. Necessary
Bank Guarantee /Security Deposit as per terms of agreement
34
General Bills
(E)
are being submitted. Necessary I. Tax/S.C./EC. Wherever

applicable are being deducted from bill. Before passing final
bill it is to be seen that the total contract value does not exceed
25 % or Less than 25 % of value of contract else Finance
concurrence has to be obtained for variation in quantity and
value.
Water Bills:
a)
All water bills are accepted by SR.DEN/ADEN as the
case may be.
b)
The bills are received and passed within due date to
avoid DELAY PAYMENT CHARGES.
c)
The bills are verified with respect to rates as
prevailing rates.
d)
The period of bills is verified with the previous bills
for ascertaining the nature of claims.
e)
Whenever S.D. has been submitted for new connection
the same is recorded and FX concurrence is obtained.
(F)
ELECTRICITY BILLS
While dealing with the claims, it should be ensured that:
a)
The bills are accepted by the concerned officer of
Electrical Department i.e. SR.DEE (TRD)/SR.DEE (G)
as the case may be.
b)
The bills are received well before the due date of
payment. If it is not so it should be brought in to the
notice of SR.DEE (G)/SR.DEE (TRD)
c)
No loss is incurred to the railways on account of bills
being passed after due dates, thereby attracting delay
payment charges.
d)
The opportunity of availing discount is cashed in,
whenever it is available, by passing the bills before
stipulated date.
e)
The bills properly pertain to the current month by
comparing the same with the previous months.
35
e)
Whenever security deposit is given, it should be with

due reason and finance concurrence.
(G)
REPAIR BILLS.
a)
All the bills above RS.10000/ should carry the finance
concurrence.
b)
At least three quotations have been invited in each
case where the amount exceeds Rs. 2500/- .
c)
The bills carry a certificate that the work has been
carried out satisfactorily.
d)
For every repairs bill exceeding Rs.2500/- has the
finance concurrence. Para 6.40 of SOPWCRWCRGEN,
regarding the limit of RS.2 lakh per annum per
department, is adhered to.

e)
Medical Bills where purchase is done by the CMS.
While dealing with the claims, it should be scrutinised that:
a)
The bills are received through CMS BPL dully accepted
by him.
b)
The items contained in the hospital bills & rates
quoted for each test and operations should be from
the pre-approved list of railways.
c)
The bills should be duly accepted for hospitalization
and for drugs medicines and it should be accompanied
by covering letter from CMS that the employee has
been referred for the mentioned diseases and tests.
d)
In case of advance payment, finance concurrence has
been obtained and AGM sanction and Railway Board
sanction has been obtained in each case.
e)
The bills received are only from approved list of
hospitals and validity period of the firms is not
expired.

36
Local Purchase Medical Bills- These bills pertaining to

purchase by DMM
General Bills
While dealing with the claims, it should be scrutinised that:
a)
For all the bills valuing up to CMS BPL places Rs.

10000/- the order.
b)
The sanction of The CMD is obtained for the purchase
of medicines over and above Rs.10000/-
c)
The finance vetting from FA&CAOs office is obtained,
wherever an item of the bill exceeds Rs.50000/- or
the overall amount of the bill exceeds Rs.3 Lakhs.
d)
All medical bills are duly accepted by the concerned
medical superintendent in respect of the medicines
received and it is to be ensured that these are in
order.
e)
The purchases are not split up to avoid finance
concurrence or to bring it to lower competency of
sanction.
2)
PAY ORDERS
i.
All the pay orders are passed for different payments
the same procedure is followed. If the pay order is
pertaining to RTO / TAXES, Finance concurrence has
to be obtained.
ii.
If the pay order is pertained to payment towards toll
tax finance concurrence has been obtained in each
case.
If the pay order is for RRB examination, the sanction of

CHAIRMAN RRB and Finance concurrence is obtained
in each case. 50 % of total expenditure is first to be
charged to RRB head, and debit of such expenditure
on quarterly basis is to be raised to South Central
Railway by preparing ATD.
37
3)
STORE BILLS
RULES AND PROCEDURES adopted for passing of stores

bills.
The procurement of material on WCR is handled by Controller

of Stores through his subordinate and unit offices. In WCR,
COS Office deals with all material procurement at HQ level,
while in units (Division, Workshops, Loco Sheds) concerned
unit Stores Officers handle procurement of material for their
respective units.
The office of the FA&CAO/WST functions as the associate

finance for Controller of Stores and is responsible for
liquidating all liabilities entered into by COS on behalf of WCR.
All the bills raised by Suppliers for delivery of material are
dealt by FA&CAO/WST office and other unit Account Offices
for arranging payment to suppliers.
Following offices deal with payment of Suppliers bills on

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

by COS Office.
Workshop Accounts Offices All Non Stock

Procurement and Emergency Stock procurement by
their Depot Stores Officers for Workshop.
I.
II.
38
Divisional Accounts Offices All Non Stock

Procurement and Emergency Stock procurement by
their Depot Stores Officers for Division.
There are following types of store bills
Stock item Bills The bills pertaining to procurement

of stock items i.e. items kept in the custody of the stores
department which are frequently and regularly required and
whose unit cost justifies incurring inventory carrying cost
associated with these items.
Non Stock Item Bills Items which are not stocked by the
Stores Depots but are required by consumers are procured
as Non Stock procurement to be delivered directly on shop
General Bills
I.
floor. Bills pertaining to non stock procurements are passed

by concerned associate finance offices.
Stock Bills -
a.
Proforma Invoice These bills are of 100% Advance
Payment received from Stores Branch with the
instructions that cheque may be handed over to the
representative of Stores Branch. Cheques are handed
over to the Suppliers by the representative of Stores
Branch after due inspection of material.
b.
Advance Bills These bills are of 100%, 98% &
95% advance payments as laid down in the Purchase
Order.
c.
Bills against Receipt Order These Bills are of

100%, 2% & 5% as per purchase Order. The payments
are arranged against receipt of material as per
specification by the Depot Officers. Bills are passed
after comparing the accounts copy of receipt order
with suppliers copy and ensuring corresponding
credit in purchase suspense.
d.
Bills against Railway Boards Orders These bills
are based on the terms and conditions prescribed
by the Railway Boards. Bills are generally for
procurement of centralized procurement.
e.
RITES Inspection Fee Bills These bills are directly

received from the respective zones of RITES (i.e.
Northern, Eastern, Western & Southern) After linking
the bills with the respective Purchase Order it is being
passed.
STAGES OF PASSING OF BILLS :

i.
As and when bills are received from firms/COS Office/RITES,

same are registered in computer and separate registration
no. for each category of bills is provided by the system. After
registration of bills they are handed over to the recovery
section for verification of bills from recovery register and
39
ii.
iii.
iv.
v.
vi.
vii.
then it is handed over to section officer, who allots the

registered bills to the concerned bill passing clerk through
Material Management Information System (MMIS)
Bill clerk, after receiving the bills, connects the bills with
concern Purchase Orders in order to carry out necessary
internal check as per Purchase Order.
If bill is found in order, necessary check for admitting the

amount payable to the suppliers is exercised on MMIS and
after that concerned bill clerk passes and forward the same to
his section in charge for further scrutiny and authorization.
On receipt of checked bills from bill clerk concerned SO

exercise relevant checks on MMIS and forward the same to
Accounts Officer, if found in order, for authorization.
After being authorized by the Accounts Officer, CO7 (Cash
Order) is generated by bill clerk and signed by Section Officer
& Accounts Officers.
Approved and Signed CO7 are dispatched for preparation of

cheques.
Cheques are prepared by Accounts Office and dispatched to

the concerned suppliers through Pay Office. The cheques are
dispatched to Supplier through register post.
CODAL PROVISION

Following paras of different codes deal with Bills and, are

being followed while passing the Stores Bills on WCR.
Stores Code Para 739 and 2825
Accounts Code Para 1101 to 1107
Engineering Code Para 1335, 1338 & 1341 to 1345
The extracts of above paras of relevant codes are reproduced

below.
INDIAN RAILWAYS CODE FOR STORES DEPTT VOL-I
PARA-739 . Procedure for payment of suppliers bills in

respect of direct delivery orders.

40
General Bills
(a)
In cases where the payment is made by the Indenters

Accounts Officer.The supplying firms will submit one copy
of the bill marked Original and the railway receipt for the
consignment directly to the consignee. Another copy of the
bill marked Duplicate, not for payment shall be submitted
to the Controlling Officer of the consignee.
The Controlling Officer will maintain a consignee wise
register of such bills and watch the return of the original copy
of the bill from the consignee.
The consignee after verifying the stores received by him with
the relevant Acceptance of Tender/Supply Order/Purchases
Order of which a copy would have been furnished to him will
endorse a certificate for the quality and quantity received by
him and forward the original bill to the Controlling Officer
mentioning therein that the receipt has been entered in his
numerical ledger and the entry initialed. Any discrepancy
in quality or quantity of the stores received by him or the
quantity rejected by him, shall be advised to the firm direct,
endorsing a copy of his advice to the Controlling Officer and
the Purchase Officer.
The Controlling Officer on receipt of the original copy of the
bill, will countersign and forward the same to the Accounts
Officer for payment. Any entry to this effect should be made
in the register mentioned above.
The firms bills should be paid promptly and as far as possible
within two months from the date of despatch of the stores
and in case the consignment is lost in transit, the consignee
should inform the consignor that a claim within the prescribed
period should be preferred.
In case of unusual delay, the suppliers should be advised to
bring the matter to the notice of the Divisional Superintendent
or the Administrative Officer of the Department concerned,
for which purpose the authority to be addressed should be
clearly indicated in the Acceptance of Tender/Supply Order/
Purchase Order.
41
(b)
(c)
In cases where the. payment is made by the Stores Accounts

Officer.The procedure prescribed above should be applied,
mutatis mutandis, except that the Controlling Officer will
forward the original copy of the bill, duly accepted, to the
Stores Accounts Officer instead of to the Indenters Accounts
Officer.
Where 90 per cent payments are made to firms against
proof of despatch after inspection, the original Railway
Receipt should be sent to the Accounts Officer responsible for
payment along with 90 per cent bill advising the particulars
of despatch to the consignees.
The Accounts Officer after passing the 90 per cent bill should
pass on the original Railway Receipt to the Consignee for
taking delivery of the consignments. It should, however,
be ensured that there is no delay in the Accounts Office
in transmitting the original R/R to the consignee. The;
procedure for the payment of the 10 per cent bill will be as
described above.
Note.In the case of direct delivery stores chargeable to Works,

Receipt Notes should be prepared by the Consignee in
triplicate in form S. 739. One copy of the Receipt Note should
be sent to the concerned Accounts Officer and another to the
Executive Officer maintaining the Works Registers in terms
of paragraph 1440 (A)-E and 1440 (B) E.
INDIAN RAILWAYS CODE FOR STORES DEPTT VOL-II

Para 2825 S Prompt Payment of Bills.No bill should

ordinarily take more than four days to be disposed of in the
Accounts Office unless there are defects in it which render in
admissible in audit or call for further reference. CHAPTER XI
INDIAN RAILWAYS CODE FOR ACCOUNTS DEPTT

Chapter XI of the code deals with Bills and is reproduced

below
42
Para 1101 A1. Introductory. The document through which

a claim is preferred is referred to as a Bill in this Code. Bills
General Bills
which are payable by the Railway are referred to as Bills

Payable and those which are recoverable from other parties
as Bills Recoverable.
Para 1102 A1. Bills Payable. There are bills which are
to be settled by actual payment of cash and bills which do
not involve any payment or receipt of cash but are only to be
adjusted in the accounts.
Para 1103 A1. All bills which are to be settled by payment

in cash are to be registered on receipt in the Accounts Office
and subjected to the required checks. Thereafter abstracts
of the bills are to be prepared based on which cheques are
drawn and payment arranged through the Pay Department.
This process is further explained in the following paragraphs.
Para 1104 A1. Registration of Bills to be settled by Cash
Payment. All bills which are to be settled by cash payment
should be entered in a register of Bills (A. 1104) and should be
numbered in consecutive order and the date of receipt should
be entered upon them. The number thus allotted to each bill
will be referred to as the Accounts Bill Number or briefly
as AB No. or CO-6 No.. The bills should then be sent to the
section concerned for check. After a bill has been checked, the
amount for which it has been passed in internal check will be
entered in the appropriate column of the Register (A. 1104)
provided for the purpose. The register will be so maintained
that the particulars of all bills received during each month
are shown distinctly.
Para 1105 A1. Bills received from other Railways and
other Ministries of the Central Government or the State
Governments which are not payable in cash but are adjusted
in accounts (see Chapter IV) should not be entered in the
Register of Bills (A. 1104) but should be recorded separately.
Para 1106 A1. Accounts Enfacement on Bills (for Bills to

be settled in cash) All bills entered in the Register of Bills
(A. 1104) should be passed after internal check. On the
completion of the internal check (or before detailed check
43
in the case of bills dealt with under the post-check system

vide rules in para 813 & 814) every bill should be enfaced
showing the amount for which the claim has been admitted
by the Accounts Officer, the total amount deducted and the
net amount payable The accounts office enfacement on bills
should be in Form A. 1106.The head of account to which the
total amount of the claim admitted is chargeable and the
head of account to which deductions are creditable should be
shown on or near the enfacement.
Note. - (1)
In the case of bills on which payments have to be made

through another Accounts Officer (Cf. Paragraph
1132) the words Not to be included in A. 1107 should
be distinctly written above the Enfacement.
(2)
Para 1107 A1. Abstracts of Bills Passed. The bills passed by

the Accounts Officer for payment in cash or by cheque should
be posted into the Abstract of Bills Passed (A. 1107) The
object of this abstract is (i) to reduce to the extent possible the
number of cheques to be drawn each day and (ii) to present
the various bills passed by an Accounts Officer in a condensed
form to the Officer who has to sign the cheques. The entries in
the Abstracts of Bills Passed (A. 1107) should be sufficiently
full and clear to obviate a reference to the vouchers.
44
The Accounts Office enfacement (Form A. 1106)

should be signed by the concerned Accounts Officer.
When, however, there is only one Accounts Officer
attached to an office (e.g., Divisional Accounts Office
or Workshop Accounts Office) and the Officer is away
from the station on tour or is on leave or absent from
office for unavoidable reasons, the enfacement may
be signed by the Section Officer (Accounts) attached
to the Section of that office.
The Abstract of Bills Passed will thus give the particulars of

each bill, the amounts passed, the amount recoverable and
the net amount to be paid. It should show the name of the
Bank on which the cheque is to be drawn, details of the payee
and the allocation of the charges.
General Bills
The Abstract should be checked with the connected bills and

signed by the Accounts Officer. As a safeguard against the
inclusion of a bill in more than one Abstract, the enfacement
on a bill included in an Abstract should be crossed off by
the Accounts Officer signing the Abstract. The Abstract of
Bills Passed (A. 1107) should be forwarded to the section
preparing cheques.
The numbers of the Abstract of Bills Passed (A.1107) should
be quoted in all records in which the Abstracts are referred
to. The Abstract of each week, fortnight or month should,
after their return from the Cashier be bound together and
carefully preserved so as to form a record of bills passed for
payment. This record should be treated as a subsidiary book
to the Daily Abstract of Cash Transactions (A. 304)
Note : The Abstract may be signed by Section Officer (Accounts) in

the circumstances in which they are permitted to sign bills,
vide para 1106 but all such Abstracts must be countersigned
by the Accounts Officer on his return to duty.
ENGINEERING CODE
PARA 1335 E Subject to provisions of paragraph 1312 and

1327 to 1332 ante, the bills of contractors for work done or
supplies made should be prepared in any one of the following
forms according to that circumstances mentioned below
against each :(i)
Petty Contract bill, Form E. 1336.
(iv)
Hand Receipt, Form E. 1339.
(ii)
(iii)
Running or On Account bill, Form E. 1337.

Final Bill, Form E. 1338. and
The final bill Form (E. 1338) should specifically provide that
the contractor concerned accepts the amount billed for as
a final payment in settlement of all his claims in respect of
the particular work. Bill for work done should necessarily
be prepared in any one of the above forms. Bills of supplies
submitted on suppliers own forms may, however, be
45
accepted when prepared in English or Hindi, any further

particulars required by the departmental form being added
by the disbursing officer. All bills passed against a work order
should be noted on the work order.
PARA 1338 E The final Bill from (From E 1338) should be
used for making final payments, i. e. on closing running
accounts for works. Normally only one final bill should be
prepared against an agreement or work order. But in cases
where groups of annual repair works are included in one
agreement or work order, there is no objection to more than
one final bill being prepared on the completion of each group
or certain groups.
Para 1342 E Other Miscellaneous Payment.--Other payments

which an Executive Engineer has to arrange are with regard
to pay, allowances and other miscellaneous personal claims
of the constructions staff such as advances of pay, travelling
allowances, withdrawals from P.F. etc. Such claims should
be dealt with in accordance with the rules and orders in the
relevant sections of the Indian Railway Codes.
Para 2817 S which will be printed in English, Hindi and

the vernacular of the district in which used. Vendors of
stores should be encouraged to use these forms which may
be supplied free of charge. In the case of final payment on
a running contract for the supply of stores, the same form,
but printed on yellow coloured paper, will be used, and
disbursement made as on final contract certificates. The
procedure laid down in paragraph 739 of the Indian Railway
Code for the Stores Department should be followed in passing
claims for stores supplied.
46
Para 1344 E Pay Order.--This Form (E. 1344) is to be used

only in the case of such miscellaneous payments as refund of
earnest money, payment of court attachments., & Pay orders
will be bound in books and will be machine-numbered. These
books will be issued on requisition only to those officers who
have been authorised by the General Manager to use them.
General Bills
Para 1345 E General Rules.-Should any of the prescribed

forms not be used, care should be taken to see that no
particulars, certificate or signature required by the
prescribed forms are omitted. The general rules laid down in
the following paragraphs should be observed in connection
with the claims referred to herein as bills.
DO s and DONT s

All suppliers are required to follow the following while

submitting their bills for payments. It will facilitate prompt
disposal of the bills at Railways end.
A. DO s.

i.
Bills should be in original form and marked as

ORIGINAL.
iii.
Corresponding address of firm should clearly be given

on bill.
ii.
iv.
v.
vi.
vii.
viii.
ix.
xi.
x.
xii.
xiii.
Duplicate copy marked with not for payment should

also be submitted.
Purchase order no and date must be given.
Reference of Modification advice (if any)
Description of material should clearly be indicated.
Bank account number and branch name may be given

where payment is to be made.
Details of Railway receipt, receipted delivery challan,

inspection certificate , CST/VAT number ,Receipt
Order/ note and date should be given.
All columns of bill should be correctly filled.
Unit rate, quantity, taxes, freight /any other charges

(if any) and total claimed value should correctly be
filled according to Purchase Order.
Claimed amount should be certified in words.
Bill must be signed by authorized person of the firm.

Bills should be Pre-receipted with revenue stamp.
47
xiv.
xv.
B. DONT s

1.
3.
2.
4.
5.
DISCLAIMER:
Any dispute should be settled with COS before

submission of bills.
Original Railway receipt, receipted challan duly

signed/attested by Gazetted Railway Officer/pink
copy of receipt note, Payment copy of inspection
certificate, excisable goods invoice(original buyers
copy), CST/VAT certificate , guarantee/ warrantee,
MODVAT certificate ,indemnity bond,certificate of
goods correctly dispatched should be enclosed with
the bills.
No correction/overwriting are to be done. (must be
attested if inescapable)
Photo copy of any documents ( which are required to

be submitted in original) may not be submitted .
Do not leave any columns of bills to blank.(xxx marked

if no information)
Do not submit the bills without requisite documents.
Do not Submit the bills if any dispute with COS/Depot

officer is unsettled.
The above information is provided as a guiding factor to

suppliers. All statutory requirements are to be complied with
even if not included above. The above information does not in
any way supersede any Codal provisions of Indian Railways
and any extent instruction of Railway Board issued from time
to time.
a)
The bills are in the proper format i.e. S2817.
b)
The bill is signed by the Vendor/contractor, bill
passing officer and works accountant.
c)
The items of bill, mentioned below, are in complete
conformity with the same given in the concerned
48
General Bills
purchase order, Stores code provisions and important

letters issued by higher authorities and the following
should also be verified:-
i)
Unit Rate.
ii)
Total amount due.
iii)
Terms of payment. i.e. when 90%, 95%, 98%,
100% or10%, 5% and 2% payment is due.
iv)
Receipted delivery challan.
v)
Receipt Note and Acceptance.
vi)
Inspection certificate.
vii)
Excise duty invoice.
viii)
CST/VAT Invoice.
ix)
Guarantee & warranty certificate.
x)
Transport documents.
xi)
Necessary Bank Guarantee /security deposit
as per the terms of P.O. are being submitted.
d)
The bill is arithmetically accurate.
e)
Funds are available for the purchase and it is certified
and allocated to the proper head.
f)
The recovery of liquidated damages for late delivery
of material is done from the suppliers bill.
g)
Wherever the S.D. is due and the bill passing officer
has failed to recover the same, the liability of the
same should be ascertained and be recovered from
the suppliers bills.
h)
The net payment payable is certified on the bill.
i)
Enfacement stamping is done on the P.O.
j)
The vital particulars of the bill are recorded on the
P.O.

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

the enfacement on the bill is crossed by the section officer.
Section officer ensures that CO7 number is recorded on the
49
bill. Thereafter the bill is forwarded to DFM for approval and

subsequently to Books section for preparation of cheques.
In the event of a bill requiring any supporting documents
or lacking in any respect, it is returned to the concerned
executive for fulfilling the requirements.
4)
Procedure through AFRES:
Having passed through the above filters, the bills are

then passed for payment through AFRES, where the bill
registration, bill passing, and CO7 postings are done and C07
prints are generated. The concerned AA puts the same to
SO (XI) for cross checking and verification of accuracy and
supervisory checks. The scrutiny is done cent percent basis
by SO. Afterwards it is presented to the DFM for approval.
In cases, where bill amount is less than Rs.25000/and the
Amount of CO7 being less than Rs. 1 Lakh, it is signed by
SO himself. Once a bill is approved by the DFM, and being
dispatched by the AFRES module, it is sent to books section
along with the supporting vouchers for preparation of the
cheques. Practically, this is the end of bill passing cycle.
The hard copies of the CO6 entries and CO7 for a month are
generated and preserved for AUDIT & RECORD purposes. The
transactions relating to Store bill are saved in the system and
the hard copies are taken out and preserved for future use
as and when it is required in response to any query or future
verification. Wherever it is necessary, ATDs/ATCs are raised,
during the course of preparing CO7. If debit is to be raised, ATD
is prepared and ATC is prepared when credit to be adjusted
and submitted to book section for onward adjustments.
Meanwhile, JOURNAL VOUCHERS are also prepared to
account the adjustment of ATD/ATC, Transfer Vouchers (in
respect of Demand No.16 received from Executive offices ,
HQ and other Accounting Units) and rectification of errors.
The same is prepared in duplicate and submitted to books
section for onward adjustments. With this ends the whole
cycle of receiving of bills, Passing of bills and accounting in
the books of accounts.
50
General Bills
5)
ACTUAL MONTHLY ACCOUNT CURRENT
After closing of monthly account when the Cash Book print

and JV print is printed by EDP center such account current is
prepared. After receiving final JV print from EDP center the
process of Source wise and Plan head wise summarization.
of the expenditure. Is done in the section and the same is
handed over to Books section for preparing and submission
to HQ of Schedules and Account Current for the month.
6)

7)

Monthly statement of Plan head wise expenditure
After closing of monthly account and printing of JV one

statement showing the Plan Head wise Budget grant and
the expenditure to end of the month is handed over to EFFY
section for the preparation of MPR.
MONTHLY BILLS POSITION
The details of Bills received. Passed and returned is provided

to EFFY section with the bifurcation showing no. of bills
passed through EFT/ECS and through Cheques.
8)
BI MONTHLY STATEMENT.
The details of Security Deposit deducted through bills, year

wise break up is prepared and handed over to EFFY; section
for onward transmission the details to HQ.
9)

HALF YEARLY STATEMENT
The Half yearly suspense review for Security Deposit by

showing year wise items over one year old, less than one
year old, amount more than 25,000/- and less than 25.000/separately.
10)
ANNUAL STATEMENTS:-
i)
The Annual suspense review for Security; Deposit by showing

year wise items over one year old, less than one year old,
amount more than 25,000/- and less than 25.000/- separately.
ii)
Statement of dividend payable to General Revenue. The

51
iii)
iv)
v)
vi)
vii)
viii)
11)

52
figures for such statement is extracted from Actual account

current of March
Annexure-D Statement of expenditure of important open
line works and new construction. Figures are called from
Divisional Accountant for any open line new construction
work in the current financial year.
Annexure G (Block Account- TVRA) Figures are taken from

the actual account current of March. of the current year and
closing balance of previous year for the asset which are in
existence since beginning of the division. By these figures the
block account is compiled source wise..
Annexure E Expenditure relating to strategic lines.
DRF account. After receiving the Daybook summary from

EDP Center plan head wise statement for DRF is prepared and
submitted to HQ.
Statement no.38. Figures for this statement is taken from
R.A.R. to end of March every year P.U. 28 under demand no. 3
to 13.
Appropriation account (credit to capital of retired assets)

Figures for this statement from actual account current of
March.
Posting and reconciliation of Works Expenditure:
Procedure: This Assistant gets the cash print/listing from

Assistant 4 duly posted with particulars of expenditure. From
this information postings are made in the Day Book which
contains the Work Folio No.(name of the work) and amount.
Each entry in the listings is summarized in the Day Book
Department-wise and total struck. These totals are taken to
the Abstract Book, which contain different Folios for different
work. These registers are maintained as per the working
arrangements of the Works Accounts Branch since this
Assistant who has to ensure the corresponding entry for the
same amount in the Works Registers does the reconciliation
of the Day Book postings with the Works Accounts Branch.
General Bills
While reconciling, suitable remarks should be made in the

Day Book against each entry whether reconciled or not and
signed. If not reconciled, the reasons for non-appearance
of the entry in the Works Register or vis--vis need to be
investigated. The reasons for non-reconciliation could be
mistake in Work Folio No., mistake in Amount posted, wrong
allocation, posting in the following month, etc. It should be
ensured that a Transfer Voucher for book adjustment rectifies
either by JV or the mistake.
12)
In terms of Para 803-AI, the work of a clerk is required to

be Test checked by the subordinate supervisory staff and the
Gazetted Officer in charge of the section and the result of the
test check should be systematically recorded and submitted
for review at prescribed intervals. Test check should be
carried out according to the scale laid down in the Annexure
- I and the results of the test check should be recorded in
a separate register to be maintained for special purpose in
accordance with the instructions given in Accounts Code.
12.1) NECESSITY FOR TEST CHECK:
TEST CHECK:
Test check is correct index of judging efficiency of

the work of the clerks. This also serves the purpose
constituting the effective medium of correcting
defective work and educating the clerks about Rules
and Regulations to be followed in internal check. It
is, therefore essential that the orders governing
the Test check of the clerk should be scrupulously
implemented and the Test check carried out every
month and without fail by the supervisory staff and
Gazetted Officers.
12.2) TEST CHECK SUPPLEMENTAL TO DETAILED

CHECK:
It should be remembered that the test checks do in

no way supersede the detailed checks which have
53
been separately prescribed in the Codes, Manuals and

/or other administrative instructions and should be
taken as supplemental thereto.
12.3) POLICY TO BE ADOPTED FOR TEST CHECK:
The general policy to be followed in regarding to test

check is as follows: -
12.4) EXTENT OF TEST CHECK TO BE CONDUCTED:
54
That test check by Gazetted Officers to be

really effective & should take note of
the
nature of work and the circumstances under
which it is done;
More routine check of certain number of

items without selective examination should
be avoided;
The sectional official should have a firm grip
over the important aspects of work in his
branch office by undertaking a test check
of these items from day to day rather than
confining himself to a routine check of a few
items; and
The test check should cover the work of as

many clerks as possible.
Keeping in view the above policy, test check
should be conducted according to the scale
laid down in Annexure - I.
The extent of test check to be done by the Gazetted

Officers should include all aspects of the work, which
do not in the ordinary course pass through their
hands in day to day working. It is incumbent on the
Section Officers in charge of the various Sections to
test check without omission all the various phases of
work listed in Annexure - I relating to their charge
every month or at the specified intervals. In covering
these items of work from month to month, care should
General Bills
be taken to select the work done by different clerks

doing the same phase of work, so that the work of the
various clerks placed under their supervisory control
is brought under the purview of their test check in
rotation.
12.5) SELECTION OF CLERK(S) FOR TEST CHECKING

THE WORK:
Test check being intended to ensure professional

efficiency and improving the effectiveness of the
internal check, should be adequate and is to be carried
out in a systematic and intelligent manner. Clerks
whose work has to be test checked should be selected
on the basis of random sampling and this selection
should not be reduced to a pre-determined routine
matter. Selection of particular clerks, whose work is
to be brought under test check by the, Senior Section
Officer during a month should be made confidentially
by the Branch Officers (where two officers exist by
the Senior Officer) All phases of work done by the
clerk(s) so selected should be subjected to test check
to the extent shown in Annexure - I . The selection of
individual clerk for this purpose should be so made
that all the different phases of work in the Section
would come under test check in their turn during the
course of each half-year. The selection of individual
clerks from month to month should be so made that
work of all the clerks in the section should come under
test check of either Branch Officer, or Senior Section
Officer
12.6) Procedure for Test-Check:
The Test check should, apart from verification and

thorough examination of facts and figures embodied
in various documents brought under test check,
be directed to an intelligent scrutiny to find out
whether the clerk(s) understand their duties and
rules governing them and do the work allotted to
55
them diligently and whether there is any tendency to

do the work casually. Test check should particularly
be conducted at least once in a month by SO and all
officers. The test checks should not be of routine nature
rather they should focus on system improvement,
procedural lacuna and lapses. The underlying idea
should be efficient disposal without any violation of
rules and procedures. The checks should also reflect
the updated skills of the officer.
- [PARA 803 A1]
12.7) Recording of results of Test- Check; _

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

official, the test check is required to be made in accordance
with these orders. The entries made in the register
should contain adequate particulars so as to facilitate the
identification of the entry/voucher subjected to test check
and entry/voucher should be endorsed Test checked under
the dated initial of the official conducting the test check.
The result of test check should be recorded

systematically in a manuscript register in the form
given below:-
The exact nature of the discrepancy noticed should be briefly

indicated in the appropriate column of the test check register.
If the discrepancy calls for a lengthy note, the same should be
given as a separate note for further disposal being done on
the connected file(s) and a cross reference to this note should
be recorded in the relevant column of the Test Check Register.
56
The observations as a result of the test check should be clearly
General Bills
indicative of the appraisal by the checking authority of the

quality of performance of the clerks whose work came up for
test check.
12.8) Test- Check of registers:

Another important item of test check is the inspection of

different registers by the Gazetted Officers. The intervals
at which different registers maintained in Accounts Offices
should be put up for inspection by Officers.
12.9) Periodicity of submission of Test- Check register to

Officers:

13)

Every test checks register should be provided with an

inspection sheet below the front page indicating the month of
test check, date on which put up and the date reviewed by the
Officer concerned. The test check registers of Section Officers
and Senior Section Officers should be put up to the Branch
Officer on the 10th of each month indicating the test check
done on the work of clerk in the preceding month for review
and orders, where necessary, by the Branch Officers.
Important tips for AFRES USERS:
Each and every user in the section including .S.O. is

allotted separate ID name and password. Supervisor
o the section will ensure the periodical change
of password exists for each and every user of the
section. The entry of such effect is to be kept in the
manuscript register opened for the purpose. The
period for changing in password will be at the interval
of at least one month.
After customization of AFRES programe, SO (In

charge of the section) will run Audit trail of their
section. This is to be run at the interval of 15 days
and obtain signature of concerned officer. SO will be
given feasibility with their user ID and password for
accessing and running Audit trail.
It is also to be ensured by supervisor of the section
57
58
that the ID and password is not to be shared by more

than one staff of the section.
If there is any modification in any rules/programme

due to Railway Bds policy/circular /orders or due to
any reasons the modification in the AFRES program
is done the proper testing of such changes is to be
carried out and results of such effect to be recorded
before final implementation. The detail procedure is
annexed as AFRES USER MANUAL separately.
Chapter 3
CONTRACTORS BILLS
1.0)
Contractors Bills
On account and final bills are received from executives in

prescribed format i.e. 1337E, 1338E of Engg. Code. CO6 is
taken from AFRES and internal checks are carried out As
per Para 1354 E &1355(ii) of Engg. Code. If the bill is found
correct in all respects CO7 prepared and is passed for
payment through AFRES module.
1.1)

Internal checking of Contractor bills
Standards of financial propriety are followed in terms of Para

116F during any internal check of bill. On receipt of bills, CO6
is taken as per Para 1106-A1. Internal checks are carried out
on all bills. Scrutiny of Expenditure is carried out as per
Para 815 A-1, 816A-1 & 1355-E on all bills. If found correct in
all respect, Co-7 are prepared and passed after ensuring the
availability of funds. Apart from the above the following are
also to be ensured ( The list is elaborate not exhaustie):
The bill is original and in the prescribed FORM

NO.1337-E & 1338-E and it is prepared according to
the instructions given therein.
The expenditure relating to the work is covered by a
sanctioned estimate.
The expenditure is covered by budget allotment.
Reference to the Agreement/Work Order No. & Date

has been quoted therein.
Where a formal Contract Agreement has not been
entered into but work has been carried out on
the strength of acceptance letter the sanction of
competent authority has been received along with
the bill for arranging provisional payment pending
sanction of Contract Agreement.
59

60
If work has been carried out beyond completion date

it should be seen whether sanction to the extension
has been received along with the certified copy of
sanction accorded by the competent authority.
Sanction exists for provisional payment in excess of
agreed quantities pending issue of a supplementary
work order and if properly sanctioned.
The rates/units/quantities have been checked and
verified with reference to the contract agreement/
work order.
The rates to be paid for the bill are strictly as those
detailed in the schedules attached to the Agreement
and that rates higher than those included on the work
order are not paid without the specific sanction of the
competent authority.
With regard to SOR ITEMS - Whether the bill has
been preferred correctly as per the percentage above
SOR as per contract agreement/work order based on
accepted tender conditions.
The bill is arithmetically correct cent percent.
Divisional Accountant checks the recovery statements
and there was no delay in taking measurements and
in preparing bills after measurements.
All the requisite certificates & the signature of the
authorized executives have been recorded on the bill.
The requisite certificates regarding verification of
Measurement Book have been recorded over the
signature of the Divisional Accountant.
The quantities exceeded are according to the Plan &
Estimate and excess are within the permissible limits.
The quantities for 'ON ACCOUNT' have never exceeded
the estimated quantities on actual work done at the
time of payments.
Gazetted Officer has attested all the corrections in
the bill.
Contractors Bills
The Security Deposit has been correctly recovered

from the 'ON ACCOUNT BILLS' vide (1244-E)
If the currency of Guarantee Bond has expired,

whether the executive has asked for withholding the
amount of bill in deposits towards Security Deposits.
The contractor has signed
CERTIFICATE in the final bill.
the
NO
CLAIM
If final bill is signed 'UNDER PROTEST' by the

contractor, the requirements of PARA-1485-E are
fulfilled.
If final bill is signed 'UNDER PROTEST', claims of

the contractor have been ascertained and have been
dealt with keeping in view the remarks offered by
the responsible Executive regarding acceptance or
rejection of the claims.
NOTE: Such Final Bills signed under protest should not be admitted
in internal check unless the requirements of Para-1485-E are
fulfilled.
A certificate of check of measurements & the results

of other examinations regarding satisfactory
completion of work has been recorded by ADEN on
the final bill.
Any outstanding recoveries against the contractors,
which necessitate with holding of payment against
his bill has been affected with reference to the
Executives letter for withholding the amount.
The Executive has requested for with holding of

amount from the final bill, & the same has been
affected by way of crediting to Deposit expenditure.
The executives reference and all other details have
been recorded in the said register/account meant for
the purpose.
The 'On Account (Running) & Final Bills are checked &
compared with the contractor's ledger (From E-1483)
61
2.0
Cash Imprest: General /Fuel (Relative Para for check of cash

Imprest A/C 1601- A-1, 1050 to 1055-F1
Income Tax, surcharge, education Cess & other

statutory levies are deducted as per prescribed rate.
2.1) Objectives:

To ensure that the procured items are for the purpose

for which imprest has been sanctioned.
2.2)
Internal Check: -
Appropriate Amount is debited to correct head of

allocation to ensure that expenditure accounts reflect
true and fair picture under each proper head, subhead.
To ensure that regular purchases are not being made
from imprest.
To see that tender item has not been purchased.
That the expenditure is within the prescribed limit.
On receipt of bills, CO6 is taken as per Para 1106-A1 i.e.

Registration of Bills. Internal checks are carried out in
terms of Para 1601- A-1,1050 to 1055-F1.If found correct
in all respect, Bills are passed and Co-7 are prepared after
ensuring the availability of funds. Cash Imprest Bills are
passed once in a month. If recoupment needed more than
once in a month on unavoidable circumstances then approval
of Branch Officer/ADRM approval is required. Apart from the
above the following internal checks are also to be exercised
while scrutinizing imprest Bills: -
62
Correctness of entries in the Imprest account is

checked with reference to supporting vouchers.
Arithmetical accuracy .
Imprest has not been utilized to liquidate such claims,

which should ordinarily be pre-checked.
Supporting vouchers are genuine and full legal

Acquaintance for the payment made.
Contractors Bills
2.3)
Procedure for passing:
3.0
Standards of financial propriety are followed in terms of

Para 116F before commencing any internal check of bill. All
Imprest bills are received from the concerned executives in
form 1404 E. CO6 is taken and internal check is carried out.
If found correct in all respects as per codal provisions, CO7 is
prepared and passed for payment through AFRES module.
3.1)
Procedure for passing:

Para 116F before commencing any internal check of bills. Pay
orders are received from concerned executives in prescribed
format i.e. G 1688A/G396 B. CO6 is taken and internal check
carried out. If bills confirm to the codal provisions and found
correct in all respects, CO7 prepared and passed for payment
through AFRES module.
Ensure that no tender item has been purchased.
Assure that the cash Imprest bill is submitted in the

standard proforma.
Ensuring that the signing authority have endorsed

the bills.
Assure that the imprest holder has countersigned all
vouchers.
Assure that no purchases/expenses other than those

arising out of emergent situations or unforeseen
circumstances are being made out of imprest i.e.
regular purchases are not being made.
Assure that the imprest holder mentions details

of previous recoupment and current purchases/
expenses do not exceed the prescribed imprest limits.
Assure that the expenditure has been allocated to the
correct head of account (Allocated abstract)
Pay Order
63
3.2)
Internal check on Pay Orders:
3.2.1) Retention Money:

3.3)
On receipt of bills, CO6 is taken & internal checks are carried

out on all bills. The pay orders are passed according to
the Para 821 AI. In addition to above, the G.C.C. conditions
are also ensured to be adhered to. If credit is available in
suspense ledger, and found correct in all respects the Co-7s
are prepared and passed for payment. Any deposit remaining
unclaimed beyond time limit as prescribed in Para 321 A I to
be credited to detailed head MISC. Receipts after approval
of F.A.&.C.A.O.
Procedure for passing will be same for all the heads .
Arbitration Fees /Award/ Court Fees/:
3.3.1) Internal Check:

In addition to above, Railway Boards guidelines and relevant

SOPWCRGEN Para are to be referred for competent authoritys
sanction/ CLAs opinion. Copy of court order to be examined
and If found correct in all respects, the Co-7s are prepared
and passed for payment
4.0)

64
Whether the amount proposed to be paid is as per

Arbitration Award only.
Whether any claims other than accepted in Arbitration

have been considered in proposal.
Whether Contractor has accepted the Arbitration

Award.
Whether the Payment of award has been vetted

by Legal branch and accepted by the competent
authority.
Telephone Bills.
a)
The telephone bills are verified with reference to the

telephone No.
Contractors Bills
b)
The opening calls are verified with previous reading.
d)
The bills should be duly countersigned by ADSTE (T)
5.0)
MISC.ADVANCE (EXPENDITUREP-223 & 610A1 (Para

No.223 Chapter VI of Accounts Code Part I)
c)
If the calls exceed the limit as specified by GMs circular

for residential phones, the same should be certified
for excess calls whether it is official or private calls. If
excess calls are on Private Account, the same is to be
recovered by debiting the amount to MAE and credit
is watched through ESTT. (GAZ)/ESTT.(NON GAZ.)
For recovery through pay sheets.
When the bills are sent to accounts office for verification

and are within due date and the same are passed within the
stipulated period to avoid DELAY PAYMENT CHARGES.
5.1) Procedure:

5.2)


Para 116F before commencing any internal check of bills. Pay
orders are received from concerned executives in prescribed
format i.e. G 1686/A/G, 396 B. CO6 taken and internal check
carried out keeping in view the Para 223 A-I. If found correct
and as per codal provision then CO-7 is prepared and passed
for payment, through AFRES module.
Internal Check:
If the expenditure incurred cannot be booked to Final Head

at the time of incurring the expenditure or if the allocation
of expenditure is not known at the time of incurring the
expenditure or the expenditure cannot be booked to any
other head, the same is also booked to MISCELLANEOUS
ADVANCE. Generally, the following items are booked to this
Suspense Account in this office:
(a)
Expenditure incurred for Ministers visit, for the
deposits made for Water, Telephone, Electricity and
Gas connections etc.
(b)
ATD/TCs received from other units for those items
65
for which details of allocation are not known.
(c)
Miscellaneous Advance is debited.
(d)
When pay orders for RRB exams, are passed.
(e)
Expenditure Sections (X-I,X-II) passes some
Expenditure bills for which allocation is not known.
(f)
Misc. items (expenditure of which can not be booked
to any other head)
(g)
Debit postings of Suspense Register have to be done
by taking details from other sections viz Books.
5.3) Clearance:

66
After getting details of expenditure from executives

JV have to be prepared by minus Debiting Misc.
Advance and Debiting to final proper head.
Deposits paid for water, telephone connections are

cleared by booking the expenditure to Final Head,
after receiving the vouchers.
Wherever details of expenditure/transaction are not
available and possibility of booking the expenditure
to Final head is remote, in such cases, write off option
may be exercised, after taking sanction of competent
Authority. Credit side postings of this Suspense
Register is to be done from the JV entries prepared by
the suspense section or JVs of the respective section
who has debited the amount to this suspense head.
the same is posted on debit side in the MAX ledger,
and the balance amount, which has been deposited by
executive to station earning through MR is posted on
credit side in the MAX ledger. The same is reflected in
the book through MCR/ divisional sheet received by
book section from HQ.
Having done so, the register is totaled monthly and
reconciled with that of General books available in the
books section.
Contractors Bills
6.0) Procedure for paper securities.

6.1)

The procedure according to which security deposits are to be

dealt has been laid down in chapter xviii Accounts code Vol.1.
Para 1817 of AI elaborates the procedure to maintain the
register for recording the receipt and return of all security
deposit received. All paper securities are released/ returned
only after receiving the letter from executive duly recording
the reasons for the same. The entry is made in the register
A1817 and signed by the dealing clerk / SO/ ADFM.
Internal check of Paper Securities in Accounts Office.

It may be ensured that the securities are valid

including the maintenance period of respective work
,if any.
( It is important to ensure that copy of paper security is sent

to bank along with confirmation letter , so as to ensure the
genuineness of the signatories etc.)
In case of B.G. it is in prescribed format (as per

appendix X of A1) and bonafide is to be verified. it
is correctly drawn up, stamped and vetted by law
officer.
To obtain written confirmation from the issuing bank

to verify the genuineness of paper security .
It is valid in respect of the amount and the period for

which it has been drawn.
It is to be seen that the executive has certified that the

checks mentioned in above Para have been carried
out.
In case of Bank Guarantee submitted by the contractor,
it is to be ensured that it is correctly drawn up and is
adequately stamped as advised by the Law Officer. It
is genuine and accepted by the Law Officer.
In case of securities in the shape of Bank Guarantee,

the date of expiry should be watched and timely
action taken for its renewal/encashment as the case
may .
67
If the Associate Accounts Officer considers that the

action taken by the executive for renewal/extension
is not likely to materialize before the actual date
of expiry , the Accounts Officer shall advise the
bank concerned to deposit the amount due under
the Guarantee . he may depute a staff to the bank
concerned to encash the BG.
The amount and period shown therein is in accordance
with the terms and conditions of the contract.
The depositors title thereto is clear.
The endorsement has been made in proper form.
No payments on any running bills is to be made to the

contractor without carrying out the above checks on
paper securities.
6.2)
Return of appropriation of Paper Securities :
68
To enter the details like date of expiry, description of

the contract and contractors name of such securities
in manuscript register in form A. 1817.
Each entry in the register of paper securities or return

of any security should be attested by an Accounts
officer. Separate page should be opened for each type
of security.
The register should be put up to the Branch Officer

every month.
Before releasing any paper security, the departmental
officer should furnish necessary certificate that there
is no dues left with the contractor.
On receipt of intimation from the departmental officer

that the securities deposited in a particular case are to
be returned. may be sent back and the date of return
entered at the same time in the register of Securities
(A1817), before returning the securities they should
be endorsed back to the parties concerned.
Contractors Bills
6.3)
Safety measures to be adopted to avoid likely frauds
Before returning the security deposits the Accounts

officer should in all cases satisfy himself, from the
facts available, that the purposes for which a security
was deposited has been satisfactorily served and
there are no claims of the railway against the party
whose security deposits are being returned.
BG obtained towards Security Deposit for due
fulfillment of the work should be released only after
the expiry of the maintenance period if any and after
passing the final bill based on no claim certificate
furnished by executive.
The genuineness of the paper security should

be strictly checked. If any doubt arise about the
genuineness of the security, bank authorities may be
contacted personally with the original paper security,
since it is very difficult to differentiate between a
good quality coloured Xerox and original one and
originality can not be ensured by sending the Xerox
copy of paper security while asking for confirmation
from bank.
It is generally seen that paper securities received

with tenders are annexed in tender file and allowed
to move along with the movement of tender file. Such
frequent movement of original paper securities along
with tender file should be avoided because there
are chances of replacement of original security with
duplicate one during transit.
Original paper securities are to be kept in proper safe

custody (even in executive offices before sending to
accounts office) and efforts should be made that such
securities are in reach of only authenticated staff/
officers.
69
6.4)
Procedure for Bank Guarantee.
All Bank Guarantee is dealt under Para 1815 of AI. Railway

Board vide their letter no.2005/AC/II/25/19 dated 0809-2005 have also issued guidelines for streamlining
the procedure regarding Guarantee bonds submitted by
contractors. Steps to be taken by Executives and Accounts
Dept to deal with G.B.s are laid down in detail in this letter.
Three months advance letter is being issued to executive
with a copy to concerned bank for all those cases going to
be expired so that it can further be extended or released as
per requirement of work before its expiry date. If nothing is
heard from the executive within time, which is one month
before the expiry of validity date, then it got encased and
deposited in the Railway Accounts duly intimating to concern
executive.
6.5)

6.6)

70
Procedure for FDRS/TDRS/STDRS etc.
All above paper securities are dealt in accordance with the

PARA 1813 of AI. In this Para it has been mentioned, that
once received , the documents should be first scrutinized
to see they are genuine, that the depositors title thereto is
clear and the endorsement have been made in proper form.
For this a register in form A 1817 is maintained. To follow
these instructions all the executives have been asked by
this office that all the FDRS will only be entertained if the
concerned issuing bank verifies the same. The register is now
also attested by concerned ADFM. The dealing clerk as well as
concerned section officer signed in the FDRs by putting the
serial no. of Register on FDR/Paper securities.
Procedure for DDs/BCs/Pos
In this connection, all the above paper securities encased

before their expiry are kept in RM Deposit Suspense. The
amount will be released only after receiving the letter from
the executive duly recording the reason for releasing the
same. This amount is released through Pay Orders.
Contractors Bills
7.0)
Maintenance of Various Registers:-
7.1)
Maintenance of Retention money register: Para 1244 E
Retention money is deducted from contractors bills against

security deposits. It has Credit balance and suspense ledgers
are maintained against each contractor. These ledgers are
posted with the help of cash print, JV and reconciled with
G.B. figures every month. Retention money is released to the
contractors as and when P.Os are received from executives by
adopting procedures as that of passing R.M. In terms of Para
321A, a list of more than 3 years old items, every six month is
prepared and amount can be transferred to Railway earning,
with the approval of FA & CAO.
7.2)

Deposit Work Register: Para 1852 E
Credit is received as and when other parties deposit amount

to railways to get their work done. The head is debited as
and when the bills are passed. Departmental charges are
debited annually on receipt of T.V. from concerned executives.
The same is reconciled with G.B. every month. A register is
maintained as per form E-1852.
7.3)
Objectionable Item Register:
Objectionable items Register is maintained in form A 854.

Posting to be carried out in terms of A 856 and A 857. Half
yearly and yearly statement of unsanctioned expenditure
which is submitted to H.Q.is based on this.
7.4)

7.5)

Saving Register:
Saving register is maintained in form A 855.During internal

check of bills if any amount found in excess of actual amount
due then the excess amount will be noted down in the
register.
Commercial Tax Register.
Commercial Tax Register is available in AFRES Module as

well. Whenever any tax deducted from contractor the credit
71
7.6)

7.7)
is available in the register. Monthly/ Quarterly amount is

paid to Coml. Tax Officer Circle-1 Bhopal along with the list
of contractors. Forms 32 are being issued to contractors on
annual basis.
Deposit L Register.
Through Division Sheet amount deposited by outside

contractors for temporary electrical connection is posted
in Deposit L Register. A list is sent to Electrical Deptt. for
confirmation that the amount deposited by the party is to be
refunded or otherwise. If not to be refunded, then the same
will be transferred to final head of allocation i.e. 00862632.
TEST CHECK REGISTER.
7.7.1) INTRODUCTION :
In terms of Para 803-AI, the work of a clerk is required to

be Test checked by the subordinate supervisory staff and the
Gazetted Officer in charge of the section and the result of the
test check should be systematically recorded and submitted
for review at prescribed intervals. Test check should be
carried out according to the scale laid down in the Annexure
- I and the results of the test check should be recorded in
a separate register to be maintained for special purpose in
accordance with the instructions given in Accounts Code.
7.7.2) NECESSITY FOR TEST CHECK:
72
Test check is correct index of judging efficiency of the work

of the clerks. This also serves the purpose constituting the
effective medium of correcting defective work and educating
the clerks about Rules and Regulations to be followed in
internal check. It is, therefore essential that the orders
governing the Test check of the clerk should be scrupulously
implemented and the Test check carried out every month
and without fail by the supervisory staff and Gazetted
Officers.
Contractors Bills
7.7.3) TEST CHECK SUPPLEMENTAL TO DETAILED CHECK:

It should be remembered that the test checks do in no way
supersede the detailed checks which have been separately
prescribed in the Codes, Manuals and /or other administrative
instructions and should be taken as supplemental thereto.
7.7.4) POLICY TO BE ADOPTED FOR TEST CHECK:
The general policy to be followed in regarding to test check is

as follows: -
7.7.5) EXTENT OF TEST CHECK TO BE CONDUCTED:
The extent of test check to be done by the Gazetted Officers

should include all aspects of the work, which do not in the
ordinary course pass through their hands in day to day
working. It is incumbent on the Section Officers in charge of
the various Sections to test check without omission all the
various phases of work listed in Annexure - I relating to their
charge every month or at the specified intervals. In covering
these items of work from month to month, care should be
taken to select the work done by different clerks doing the
That test check by Gazetted Officers to be really

effective & should take note of the nature of work
and the circumstances under which it is done;
More routine check of certain number of items
without selective examination should be avoided;
The sectional official should have a firm grip over

the important aspects of work in his branch office by
undertaking a test check of these items from day to
day rather than confining himself to a routine check
of a few items; and
The test check should cover the work of as many

clerks as possible.
Keeping in view the above policy, test check should

be conducted according to the scale laid down in
Annexure - I.
73
same phase of work, so that the work of the various clerks

placed under their supervisory control is brought under the
purview of their test check in rotation.
7.7.6) SELECTION OF CLERK(S) FOR TEST CHECKING THE

WORK:

Test check being intended to ensure professional efficiency

and improving the effectiveness of the internal check, should
be adequate and is to be carried out in a systematic and
intelligent manner. Clerks whose work has to be test checked
should be selected on the basis of random sampling and this
selection should not be reduced to a pre-determined routine
matter. Selection of particular clerks, whose work is to be
brought under test check by the, Senior Section Officer during
a month should be made confidentially by the Branch Officers
(where two officers exist by the Senior Officer) All phases of
work done by the clerk(s) so selected should be subjected to
test check to the extent shown in Annexure - I. The selection
of individual clerk for this purpose should be so made that
all the different phases of work in the Section would come
under test check in their turn during the course of each halfyear. The selection of individual clerks from month to month
should be so made that work of all the clerks in the section
should come under test check of either Branch Officer, or
Senior Section Officer
7.7.7) PROCEDURE FOR TEST-CHECK:


thorough examination of facts and figures embodied in
various documents brought under test check, be directed
to an intelligent scrutiny to find out whether the clerk(s)
understand their duties and rules governing them and do
the work allotted to them diligently and whether there is any
tendency to do the work casually.
74
Contractors Bills
7.7.8) RECORDING OF RESULTS OF TEST CHECK:

The result of test check should be recorded systematically in

a manuscript register in the form given below.

Sl.No
Item of
work test
checked
Extent of
Test check
prescribed
Particulars
of vouchers
selected for
test check
Name of the
SO / SSO(A)
who had test
checked the
item
5
Result of
Test check
Whether the
discrepancy in
col.6 has been
pointed out by
the supervisory
staff
7

the dated initial of the official conducting the test check. The
exact nature of the discrepancy noticed should be briefly
test check.
7.7.9) TEST CHECK OF REGISTERS:


should be put up for inspection by Officers has been
prescribed in Appendix VIII of the Railway Code for the
75
Accounts Departments-Part-I. In addition to these Registers,

the Registers as detailed in Annexure to this chapter should
also be put up at the prescribed intervals for perusal of the
Officers concerned. Details of these registers may be noted
in the REGISTER OF REGISTERS.
7.7.10) PERIODICITY OF SUBMISSION OF TEST CHECK REGISTERS
TO OFFICERS:

inspection sheet below the front page indicating the month
of test check, date on which put up and the date reviewed by
the Officer concerned. The test check registers of clerks and
Section Officers should be put up to the ADFM/ SR.DFM on
the 10th of each month indicating the test check done on the
work of clerk in the preceding month for review and orders,
where necessary, by the Branch Officers.
ANNEXURE I
Sl.No
Description of the Work
Extent of check by Gazetted Officer.
Extent of check by
SO(A)/SSO (A)
Contractors Bills
1 running bill and one

final bill every month
2 running bills and final bills

every month
Imprest Account
1 bill every alternate

month
2 bills every month
2
4
5
6
7
8
9
76
Misc.Bills
Agreement and work

orders
Posting of Suspense
Register
Journal Vouchers
Completion Report
Contractors Ledgers
Objectionable Items
Register
1 bill every month
3 bills every month
1 item every month
2 items every month
1 JV every month
2 JVs every month
General Review every

month
1 completion report
every alternate month
To be checked in respect
of bills test checked vide
item 1 above
General review every
alternate month
3 entries in every register

and general review
One completion report
every month
To be checked in respect of
bills test checked vide item
1 above
General review and check of

2 entries every month
Contractors Bills
8.0)
Completion Report:
All completion reports drawn by executives are received in

the form 1706 E and the same are verified as per Para 1712
E. It is made sure that procedure/rules as per Para 1708 E
to 1711 are followed. CRs of unfinished works are drawn
as per Para 1713 and completion estimates verified as per
Para 1714E, If found correct in all respects, it is verified and
returned to executives for obtaining sanction of competent
authority.
8.1)

ACCOUNTS VERIFICATION OF COMPLETION REPORT :
In the Accounts Office, the Completion Reports should be

scrutinized after test checking the correctness of postings. It
should be seen that: I.
II.
IV.
III.
V.
VI.
VII.
VIII.
They have been prepared in the prescribed form and

the entries therein correspond with the particulars of
the sanction and booked outlay.
There is no delay in the preparation of the Completion
Report, after completion of the work.
Brief explanation has been forthcoming wherever

necessary for excesses or savings vide Para 1706E.
All final bills relating to a work have been correctly
posted in the accounts of the work.
The satisfactory explanations have been furnished for

excesses and savings, both in quantity and amount.
The materials charged to the work, but not utilized

have been returned to the Stores/transferred
elsewhere and the value credited to the work.
The credit for the released materials provided for

in the estimate has been adjusted against the work
concerned.
The requisite certificate has been recorded to the
effect that necessary addenda and corrigenda to the
list of buildings have been issued, if the completion
77
report relates to construction of quarters/service

buildings.
IX.
A certificate to the effect that necessary entries have

been made in the siding register/register of deposit
works is recorded in all Completion Reports relating
to assisted sidings/deposit works.
9.0)
Issue and Disposal of:
9.1)
TDS/ INCOME TAX RETURNS:
Preparation of TDS Certificates and Filing Annual Return

of Tax collected: After closure of the cash transactions of
the financial year the data bank available in the Section Files
of Codes 300 & 301 are compiled with the help of DBA and
the certificates are prepared and printed. Before printing
the certificates the total amount of TDS is reconciled with the
ledger figures. A summary of tax collection is also printed for
the purpose filing the return of Tax collected.
9.2) ATD/ATC
Adjustment of ATD/ATCs:

The expenditure pertaining to this Division incurred by other

units are transferred through ATD/ATCs. The debits include
those of the bills passed for stores, transfer of materials,
workshop debits of POHs, Stock Adjustment Accounts, debits
on Work Orders placed, transfer of deposit credits/debits,
Stores Monthly Summaries, etc.
9.2.1) Procedure

78
The ATD/ATCs are received from Books Section after

registering in the Inward Register. The same is acknowledged
by the Assistant and entered in his own ATD register allotting
a serial number starting one for the current financial year.
The register should contain ATD No., Month of receipt,
and Nature of debit, Amount, Unit transferring the debit,
acknowledgement and a remark column. The ATDs, once
registered, are sent to the Budget Supervisor by obtaining
Contractors Bills
acknowledgement against each entry. These ATDs are

either accepted by the Executives or returned unaccepted. If
accepted, the funds availability is certified with initials of the
budget supervisor or his representative with classification of
the expenditure. The classification has to be checked with
reference to the nature of debit and Finance Code Volume II.
If agreed with the classification a JV is prepared by debiting
Demand and minus debiting the unit transferring the debit.
The details of ATD/ATC should be given in the narration as
far as possible. After the JV is prepared, necessary entry is
made in the ATD Inward Register against that ATD and put
up for signature of SO/ADFM. After JV is signed, the same is
handed over to Books Section for recording the adjustment
against each ATDs delivered by them the JV is handed
over to Budget Section by the Books Section. If the ATD is
returned unaccepted, it should be seen whether the reasons
offered by the Budget Supervisor or Executives concerned
are correct and sufficient. E.g. Reasons like Not pertaining
to BPL Division should not be accepted but sent back to
Budget Section (WAB), if necessary, through a formal letter
to get the reasons recorded as to why and how the ATD is
not pertaining to this Division. Otherwise, the chances of
refusing the ATDs returned to the parent unit are greater.
Of the expenditure of any unit should, as far as possible, be
reflected in the same quarter of the year so that disputes may
be reduced to a minimum in the TD meetings. The last date
for handing over the JV to Budget Section is normally 21st of
the following month or a date advised by them as per target
dates set by FA&CAO for submission of Account Current.
Later, the ATD/ATCs are arranged in the order of their entries
in the JVs and JVs in the order of their serial number/monthwise and bunched together and preserved for record. The JVs
are normally kept within the sections records till closure of
the next financial year and after that sent to record section.
Note: The raising of debits and credits pertaining to Intra and Inter
railway are now being carried out through E-Recon. Login
79
10)

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

different sections of the accounting unit so that the debits/
credits pertaining to an accounting unit on Intra Railway
transaction is directly raised on E-Recon by respective units
and in case of Inter Railway transactions the same is raised
by unit through its HQ which subsequently raise it to the HQ
of concern zonal HQ. Preparation of JVs and generation of
reports like Inward/Outward transactions can be generated
on E-Recon. The programme for raising, accepting such
debits/credits is given every month on E-Recon.
Disposal of Railway Board/Audit and Accounts Report.
11)
Audit References: The queries received from Audit are

replied, if necessary, by obtaining remarks from concerned
executives or replies are framed from the records of the
section. Each reference of audit is to be dealt with according
to its significance.
80
Important tips for AFRES USERS:-
Each and every user in the section including S.O. is

allotted separate ID name and password. Supervisor
of the section will ensure that periodical changes of
password takes place for each and every user of X-II
section. The entry of such effect is to be kept in the
manuscript register opened for the purpose. The
period for changing in password will be at the interval
of at least a fortnight.
After customization of AFRES programme, SO (In

charge of the section) will run Audit Trail of their
section. This is to be run at the interval of 15 days and
he will obtain signature of concerned officer. SO will
be given feasibility with their user ID and password
for accessing and running Audit trail.
It is also to be ensured by supervisor of the section
that the ID and password is not to be shared by more
than one staff of the section.
Contractors Bills
If there is any modification in any rules/programme

due to Railway Bds policy/circular /orders or
due to any reasons the modification in the AFRES
programme is done & the proper testing of such
changes is to be carried out and results of such effect
should be recorded before final implementation
of application. The detail procedure is annexed as
AFRES USER MANUAL separately.
81
Chapter 4
BUDGET

1.0)

1.1)

The main functions of budget section includes (A) framing

of budget estimate, august review, revised estimate budget
estimate, modification to final estimate (B) ensure that the
actual expenditure within the budget grant (C) rectification
of wrong booking (D) funds certification.
Presentation of Budget
The estimated receipts and expenditure received from

different zonal Railway and other units are consolidated and
finalized at Railway Board level and presented before both
houses of Parliament by Union Minister of Railways.
Estimate of Receipts:
They are divided into two parts; Revenue receipts and Capital
Receipts. The budget for receipts is compiled and consolidated
by traffic Accounts branch. Railway earnings are divided into
following heads:
1.
Passenger Earnings
4.
Sundry Earnings
2.
3.
1.2)

82
Goods Earnings
Other Coaching Goods
Receipts are compiled based on the monthly balance sheets

of station Masters and goods supervisors. In the sundry
earnings part of the earnings are accounted for and reflected
through Monthly Account Current and submitted to traffic
accounts branch by Accounting Units. These earnings relate
to sale of grass, licence fee, way leave charges etc.
BUDGETING EXERCISE
The steps involved in presentation of Railway Budget are as

followed:
Budget
(i)
Preparation of budget
(iv)
Review of budget as executed.

1.3)

(ii)
(iii)
Voting of budget
Execution of budget.
Voting and review of budget are parliamentary functions

whereas preparation and executions are primarily the
functions of executives at divisional and higher levels.
THE PREPARATION OF BUDGET:
The Revised Estimates of the current year and Budget

Estimates for the ensuing year are prepared simultaneously
and the preparation takes place at grass root level i.e. at
divisional level. The entire responsibility for framing the
estimates depends upon the spending/earning units. Though
the actual work of compilation and scrutiny rests with the
FA&CAO. After proper scrutiny the budget estimates are
submitted to the Railway Board by the Zonal Railways. The
estimates so submitted are subject to the critical examination
by the Railway Board and after taking all relevant factors
into account the Board frames estimates of income and
expenditure for the Railways as a whole. The revised estimate
for current year is fixed under each demand for each Railway
after taking into account the actual of previous year, the
expenditure during first seven months of current year and
any special feature that may be known.
So far as expenditure on Capital Work is concerned the

Railway Administration compiles a list of works in progress
and new works to be taken up in the following year. The
Board discusses proposals for New Works and a list of
approved work is prepared. The proposed expenditure in the
following year on such New Works and on Works in Progress
forms the work Programme or the budget estimate of the
Rly for expenditure to be incurred on new or ongoing works.
Separate provisions are made for different types of Capital
works, which is in the form of funds like Capital Fund, DRF,
83
1.4)

DF, OLWR, Capital fund. The level of funds may slightly vary
from budget to budget.
VOTING OF THE BUDGET:
1.5)
Before presentation of budget in the parliament the

recommendation of the President is obtained under Article
113(3) of the constitution. The budget papers are circulated
to the MPs and the budget is debated in the parliament.
Speech of Minister of Railways introducing the budget
3.
BUDGET DOCUMENTS PRESENTED TO THE PARLIAMENT

1.
Key to budget documents
4.
Memorandum explaining proposals for adjustment of

fare and freight rates.
2.
5.
6.
7.
8.
Budget for the Railways revenue and expenditure
Explanatory memorandum on the Railway Budget.

Demands for grants (Part-I & Part-II)
Works machinery and rolling stock Programme

(Part-I & Part-II)
Indian Railways year book
Indian Railways annual reports and accounts.
In accordance with the Article 114 of the constitution, after

the demands for grants have been voted by the Lok-Sabha,
a bill is introduced to provide for the appropriation out of
the consolidated fund of India of all money required to meet
the grants made by the Lok-Sabha as also expenditure if any,
charged on the consolidated fund of India. The grant as voted
by the Parliament and appropriation for charged expenditure
as sanctioned by the President are distributed by the Railway
Board among the Zonal Railways and other spending
authorities. The order by which allotments are made is called
budget orders. The capital budget is presented in the form of
Rolling Stock and Final works Programme.
84
Budget
1.6)
THE STAGES TO REVIEW OF BUDGET
(i)
(iii)
(ii)
August review Mid term review Sent to Board in

August
Revised estimates Sent to Board in December
First modification Sent to Board on 1st of Feb
0.7)
(iv)
I.
Budgetary Reviews:
As a means of controlling the expenditure, a monthly review

comparing actual expenditure with the proportionate budget
allotment is made and an appreciation report bringing out
the special features in respect of each months account is
also submitted to the Railway Board. This monthly review is
done right up to the Divisional level and it helps in controlling
the expenditure effectively. This also helps in managing the
finances in a better manner by the respective departments
by postponement, modifications in the physical activities
being contemplated or appropriation of funds.
II.

Final modification sent to Board on 1st of March
CONTROL MECHANISM
EXCHEQUER CONTROL
Exchequer control is a mechanism for concurrent regulation

of cash outgo vis--vis allotments. The books of Railway
expenditure falls into 2 categories viz cash and adjustments.
The former covers all transactions completed through
cash payments or issue of Cheque and broadly comprises
disbursements to staff and contractors, settlement of bills/
claims for supplies and services etc. Adjustments represent
inter or intra accounting unit booking transactions, which
entail no cash outgo.
The object of exchequer control is to establish a system for

correct estimation of cash outgo and to monitor way and
means allotted.
85
APPROXIMATE ACCOUNTS CURRENT:

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

of arranging Ways and Means. At this stage cash outgo as well
as adjustments for the coming month are ascertained and
submitted to Railway Board through Zonal HQ.
(A)
It is thus an important tool of budgetary control. In the

exercise of exchequer control, the total allotments for the
year are divided between cash and adjustments. Board has
laid down broad guidelines for making a realistic estimate
of cash and adjustment portion of expenditure falling within
the sanctioned budget. Thereafter, the cash outgo is further
distributed amongst the 4 quarters of the year. Railway
Board issues quarterly cash allotments. The actual cash
disbursement during the quarter is reported while asking
for the cash allotment for the next quarter. The report is
scrutinized in the Boards office to see the progress of cash
expenditure vis--vis the authorization for the quarter.
Revenue Expenditures:
This is expenditure on day-to-day maintenance of the system.

Any expenditure that does not improve or appropriate the
value of the assets and the impact of expenditure does not
last beyond one-year falls in this category. Budget for Revenue
Expenditure is prepared and booked under Demands for
Grants, which are further, subdivided into subhead, minor
and detailed heads. The classification is based on function of
expenditure and objective of expenditure.
Demand
NO
Name of Demand
Railway Board
General Supdt. & Services on Railways

2
4
5
86
Miscellaneous Expenditure (General)
Repairs & Maintenance of Way & Works

Repairs & Maintenance of Motive Power
Name of
abstract
A
B
C
Budget
6
Repairs & Maintenance of Carriages & Wagons
Repairs & Maintenance of Plant & Equipment
Operating Expenses-Traffic
Operating Expenses-Rolling Stock & Equipment
10
Operating Expenses- Fuel
11
Staff Welfare & Amenities.
14
Appropriation to Funds
12
Misc. Working Expenses
13
PF, Pension & other Retirement Benefits.
15
Dividend to General Revenue repayment of

loan taken from general revenues and amortization of over capitalization.
16
E
F
H
I
J
K, N
L
Asset acquisition construction and replacement
1.12) Primary Units (Objects) of Expenditure

1.
Salaries and Wages
4.
House Rent Allowance
2.
3.
5.
6.
7.
8.
09.
10.
11.
12.
13.
14.
Dearness pay and Dearness Allowances

Productivity Linked Bonus
Compensatory (City) Allowance.

Transport allowance
Air Travel Expense sanctioned in lieu of privilege

passes.
Office Expenses.
Wages of Casual labour.
Kilometer allowance.
Overtime allowance.
Night duty allowance

Other allowances.
Fees and honoraria.
87
15.
Transfer allowance.
18.
Advertising Expenses.
16.
17.
19.
20.
21.
22.
23.
24.
25.
26.
27.
29.
28.
30.
31.
88
32.
33.
34.
Traveling expenses.
Rental for P & T Telephone and call charges including

Trunk Calls.
Utilities-Water, Electricity, etc.
Rental for office equipment (other than Data

Processing)
Printing and Stationery including Publications.
Cost of materials from stock.
Cost of materials - Direct purchase.

Fuel for other than traction.
Contractual payments - (This primary unit may be

used for works and handling contracts and contracts
for Engineering supplies of materials etc. while all
other direct purchase of other stores will be booked
under Primary unit 28)
Transfer of debits/credits from other units- (This

primary unit may be used for classifying Transfer
debits/credits other than for Stores debits/credits
received from Stores Accounts in which case Primary
Unit 27 may be used)
Adjustment of Wages on POH and other repairs from
WMS Account to Revenue Heads.
Adjustment of materials on POH and other repairs

from WMS to Revenue Heads.
Excise duty paid/payable for purchase of materials.
Customs duty paid/payable for purchase of materials.

Sales Tax paid/payable for purchase of materials.
Air Travel (Domestic)
Air Travel (Foreign)
Cost of computer hardware/system, Software/
Budget
application software including expenditure on excise

/customs and sales tax; IT related consultancy
contracts, cost of up gradation i.e. one-time
expenditure not being of recurring nature.
35.
Cost of computer consumables (ribbons, cartridges etc.),

discs, tapes, floppies, computer stationary etc., rental
of computers and AMC i.e. all expenditure of recurring
nature.
36.
Other Expenses.
39.
37.
38.
Customs duty paid/payable for purchase of materials.

Sales Tax paid/payable for purchase of materials.
40.
Air Travel (Foreign)
51.
Cost of computer consumables (ribbons, cartridges etc.),

discs, tapes, floppies, computer stationary etc., rental
of computers and AMC i.e. all expenditure of recurring
nature.
99.
Other Expenses.
The revised and budget estimates for expenditure on

construction, acquisition, and replacement of new assets
(briefly known as the Works Budget), are prepared in the
form of the Works, Machinery and Rolling Stock Programme.
Detailed instructions for the preparation and submission
of the Rolling Stock Programme and the Machinery and
Plant Programme are contained in the Indian Railway Code
for the Mechanical Department (Workshops) The Works
Programme is required to be prepared in accordance with
50.
Cost of computer hardware/system, Software/application

software including expenditure on excise /customs and sales
tax; IT related consultancy contracts, cost of upgradation i.e.
one-time expenditure not being of recurring nature.
1.13) CAPITAL EXPENDITURE
1.13. A)
Works Machinery and Rolling Stock Budget
89
the instructions embodied in the Indian Railway Code for

the Engineering Department. There is one single Demand
for Grant for Works Budget viz. Demand No, 16 for capital
budget i.e. Construction and Replacement. Whether the
expenditure is met out of loan obtained from the general
exchequer or internal resources of Railways viz., Revenue,
the, Depreciation Fund, the Development Fund and Accident
Compensation, Safety and Passenger Amenities Fund; Works
Demand provides for booking of expenditure by various Plan
heads . For the purpose of link with the accounts of Central
Government, the Plan heads form a Minor Heads of Railway
Works Expenditure, under the Major Heads 546 and 547.
Minor heads of classification also refer to Plan head code.
The list of Plan Heads is as follows:-
Code number Description of Plan Head

11.
Purchase of new Lines.
15.
Doubling.
14.
16.
Restoration of dismantled lines.
Gauge conversion.
Traffic facilities-Yard remodeling and others
21. Rolling Stock.
29.
30.
34.
Taking over of line wires from P & T Department.
35.
36.
41.
90
Road safety (ROB/RUB)
Track renewals.
33.
Road safety (L/Xing)
31.
32.
12.
13.
New Lines (construction)
42.
Bridge work.
Signaling and Tele-communication works.

Electrification projects.
Other Electrical works.
Machinery and Plant.
Workshops including production Units.
Budget
51.
Staff Quarters.
52. Amenities for staff.

53
(i)
(ii)
61.
62
Passenger amenities.
Other Railway Users amenities.
Investment in Government Commercial undertakingsRoad services.
64
Investment in Government Commercial undertakingsPublic undertakings.

Other specified works.
71
Stores suspense.
81
Metropolitan Transport Projects
72
73
Manufacturing suspense.
Miscellaneous Advances.
The source of financing is indicated by the following

alphabets while booking of works expenditure under
the Revised Classification:
P-
Capital
OLWR
Expenditure under (OLWR) is financed from railway revenues,

i.e., it is treated as a part of the miscellaneous revenue
expenditure of capital nature. Expenditure budgeted under
Capital involves increase in the Capital-at-charge of the
Railways .Since dividend is to be paid to General Exchequer
of Govt for the capital portion of the Capital Structure ,
therefore, dividend is paid for increament in this portion
subject to the reliefs/ exemptions granted by the Convention
Committee. Works Expenditure of the Railways is thus
financed from Revenue, Railway Funds (DRF, DF and ACSPF)
a Capital provided by the General Revenues. In the event of
the Railways revenue surplus not being adequate to fully
meet the requirements of Development Fund expenditure,
the budgetary support from the General Revenues would also
T- ACF
Q- DRF
S-
DF
R-
91
include temporary loans to finance expenditure from the

Development Fund.
Primary Units (objects) of expenditure for Works

(1) Pay and allowances
Establishment
of
Departmental
01
(3) Payment to Contractors and others for

Engineering works or supply and erection
contracts etc.
03
(2)
Payment to Casual labour
(4)
Direct supply of material
04
Credits for released material
07
(5)
(6)
(7)
Stores supplied from stock

Freight on stores
(8) Others
(9)
(10)
Transfer of debits/credits affecting capital

works expenditure/suspense accounts
Productivity Linked Bonus
(11) Excise duty paid/payable for purchase of

materials
(12)
Custom Duty
(15)
Travelling Expenses.
(13)
(14)
(16)
(17)
(50)
92
Sales Tax
Interim Relief.

Air travel (Foreign
Cost of computer hardware/system, Software/

application software including expenditure
on excise /customs and sales tax; IT related
consultancy contracts, cost of upgradation i.e.
one-time expenditure not being of recurring
nature.
02
05
06
08
09
10
11
12
13
14
15
16
17
50
Budget
(51) Cost of computer consumables (ribbons,

cartridges etc.), discs, tapes, floppies, computer
stationary etc., rental of computers and AMC i.e.
all expenditure of recurring nature.
51
After receiving allotment from Rly board HQ distribute to unit. The

distribution of division-wise, demand-wise, subhead-wise budgetary
allotment received from FA& CAO is to be informed to OS Budget.
-365 F1
1.15) Proportionate Budget allotment

The sanctioned allotment for the year is distributed over

twelve months. This is called Proportionate allotment or
Budget Proportionate. While framing this, the following
factors are taken into consideration.
(i)
Throw forward liability from the previous year
(iii)
Expenditure practically fixed and evenly distributed

throughout the year.
(ii)
Expenditure which is not likely to be incurred evenly

during the year
(iv) Keeping some reserve for meeting fresh or

unanticipated expenditure
(v)
Trend of expenditure booked during previous years.
The demand-wise, department-wise, subhead-wise,

PU-wise proportionate budget allotment is fed into
the computer for monitoring the expenditure. This
MIS to put up to SR DFM and DRM every month .
3.0)
Monthly Financial Review
Being a Budget Control Officer Budgetary and expenditure

control is exercised by SR DFM by reviewing the financial
position every month. Here, department-wise, demandwise, PU- wise expenditure to end of the previous month is
compared with Budget grant and Budget proportion and major
93
4.0)
variations between BP and expenditure are analyzed and put

up to DRM. Budget supervisor is also being intimated so that
necessary action can be taken. A comparative statement of
controllable heads of account like OT, TA and NDA is prepared
by comparing actual of current year, actual of previous year
and budget proportion. As regards works expenditure, planhead wise expenditure is compared with budget grant.
4.1)
Review of Expenditure
This is mid-term exercise to review the trend of expenditure

as compared to budget grant. Railway Administrations
should review their expenditure in August to see whether any
modifications are necessary in the allotments placed at their
disposal. The review in respect of each grant is submitted, to
the Railway Board in form No F-383 so as to reach them not
later than 1st September each year.
383 F1
This is prepared by executives comparing actual expenditure

of previous first four months and full year and first three
months (April to June) plus approximate of 4th month (July)
and anticipated booking in the remaining months with BG.
This is submitted to Accounts for vetting. Vetting is done
by verifying the correctness of figures and comparing the
anticipated expenditure with previous years expenditure
and trend of expenditure in the current financial year. If
any variations are there, it is seen that justified reasons are
given therein. The following checks are carried out in August
Review:
(i)
August Review Estimated (ARE)
(ii)
94
(iii)
The reason for variation in the Primary Units & minor

heads is clear & cogent along with details leading to
such variations.
ARE for demand no 16 is submitted in the prescribed

format.
The forecast of works of expenditure on works should

be made with due regards to progress of expenditure
Budget
& commitments that are likely to materialize.

Wherever the provision appear to be excess of the
actual requirement, should be surrendered at the
ARE stage itself.
(iv)
ARE for earning will be finalized under liaison with

CCM/HQ, he may coordinate in this regard and the
estimate of traffic plans for passengers & goods
may be generated in CRIS software. The estimate of
actual originating & apportioned earnings for the
proceeding year vis--vis monthly details of current
year may be furnished. The reviews of civil grant vis-vis the budget allocation need to be carried out &
estimated requirements under F Loans & Advances
only may be furnished.
(v)
(vi)
(vi)
(vii) To keep uniformity among the data of all Indian

railways, credits
should be booked /projected
only under the primary unit other expenses. This
instruction should be strictly adhered to in all
budgetary stages.
The August Review, Revised and Budget Estimates

etc. in respect of earnings, the Railway through the
windows based program namely Budget Compilation
System developed by CRIS furnishes Revenue and
works expenditure.
The August Review Estimates of Grant No 1 and 2

may be prepared indicating details of approximate
expenditure to end the concerned month incurred
under each primary unit.
We should make every effort to formulate their
estimates for demands in such a manner that various
other post-budgetary increases such as hike in the
price of HSD oil and unforeseen expenditure on
account of natural calamities etc. are met within the
existing allotments.
95
4.2)
Target date for submission of August Review:-
The target date for submission of August Review, is fixed as

1st week of August every year. However it is to be ensured
that the August Review should be submitted as per the date
fixed by headquarter.
5.0)
Revised Estimate Budget Estimate (RE-BE)
This is 2nd stage of review done after the closure of Sep A/C. In
this stage Revised Estimates for coming the year and Budget
Estimates for next year are fixed for each demand. The
estimates of expenditure in respect of each demand should be
prepared in duplicate, the, figures being given in thousands
of rupees. In preparing these estimates, it should be ensured
that the figures of actual expenditure for the preceding year
shown in the estimate agree with those reported to the
Railway Board. The figures of actual expenditure for the
current year should represent the latest data.
5.1)

Explanation of Variations
A brief narrative explanation should be given of the

causes (with amounts involved in each case) of substantial
differences between the figures adopted for the revised
estimate of the current year and (I) the actual of the previous
year, and (ii) budget allotment for the current year. Similar
explanation should also be given for differences between the
figures of the budget estimate of the ensuing year and the
revised estimate of the current year. Large variations, which
compensate each other, should also be indicated.
96
The revised estimate for the current year and the budgetestimate for the next year should be fixed after taking into
account the expenditure of the previous year and comparing
the expenditure during the first seven months of the year
with the corresponding period of the previous year. A full
explanation of special features and any exceptional and
abnormal adjustments (with amounts involved) included in
each period of the previous and current year as also in the next
Budget
year, should be given in the explanatory note accompanying

the estimates. The financial effect of variations on account
of specific reasons should be clearly brought out under each
Demand. When the expenditure anticipated in the last five
months of the year is disproportionate as compared with (I)
the first seven months of the year or (ii) the corresponding
period of the previous year, reasons for the disproportionate
expenditure should be given in the revised estimate. Special
and non-recurring items of expenditure in a year should
show a corresponding saving in the following year. Likewise,
when transfers are made from one demand to another due
to changes in classification, the saving shown under one
demand should agree with the excess shown under the other
demand. The estimates of the cost of establishment should
be based on past experience of their actual cost, with due
allowance for any changes either in the number or rates of
pay of each individual establishment in the year in which,
or for which the estimate is being made. In the explanatory
note accompanying the estimate, information should be
given as to what part of the proposed expenditure represents
expenditure on the permanent staff already sanctioned,
how much of the proposed increase in the next year is due to
ordinary increments, how much is new expenditure and how
much for temporary establishment. Reasons should be given
for additional staff when provision is made in the estimates
for such increase in expenditure. Staff Statements under
each Demand should accompany the estimates of ordinary
working expenses. Explanations for substantial variations in
the numbers should be furnished as between current years
budget and, revised estimates and budget estimates for the
following year. This is prepared by executives comparing
the actual of first six months (April to September) plus
approximate of 7th month (October) and anticipated booking
in the remaining months with BG and corresponding
expenditure of previous year. Special features, if any noticed,
should also be considered at this stage. Vetting is done as
mentioned above.
- 324 to 331 F1
97
5.2)
SCRUTINY OF REVISED ESTIMATE & BUDGET ESTIMATE
At the time of checking of Revised & budget estimate we

check the followings-
(ii)
(iii)
5.3)
Target date fixed for submission of RE BE:-
The target date for submission of RE, BE, is fixed as 1st week of
November every year. However it is to be ensured that the RE
BE should be submitted as per the date fixed by headquarter.
(i)
(iv)
6.0)

A detailed analysis on the current trend of the

expenditure and forth coming future expenditure
may be carried out before projecting RE so as to
avoid excess/ saving. Credits & recoveries should be
estimated with utmost care.
Detail reasons for variation in respect of each minor
head, taking all primary units together and by primary
units, for the demand as a whole may be furnished.
It may be ensured that REs are accompanied with

required annexure.
Debit/ Credit projections under various suspense

heads of Demand no. 12/K may also be furnished with
due care.
Final Modification
Final Modification Statement submitted to HQ should be

furnished, for each grant separately, and it should reach them
not later than 21st February finally to Railway Board, with
statements showing additional allotments required (both
voted and charged) or surrenders to be made, during the
current financial year under each head of appropriation, as
prescribed in the budget orders, and requiring the sanction
of the President. The variations between the final modified
allotments required and the revised estimates as fixed
by the Board should in all cases be supported by adequate
explanations of the reasons for the demand or surrender.
98
-385 F1
Budget
6.1)

7.0)

This is done after the closure of December accounts when

the actual expenditure of 9 months and approximate for
10th month are available. Through this additional funds are
asked / surrendered as per the requirement. Vetting is done
as mentioned above.
Target date fixed for submission of Final Modification:-
The target date for submission of Final Modification is fixed

as 1st week of January every year. However it is to be ensured
that the August Review should be submitted as per the date
fixed by headquarter.
Appropriation Accounts
Apart from its significance as an instrument of Parliamentary

financial control, the Railway Budget is an important
management tool. Broadly the financial forecast in the
Budget is related to the performance targets set for Railway
Administrations, and it is the responsibility of the Railway
Managements to ensure the achievement of these associated
targets.
-304 F1
Parliamentary Financial Control is secured not only by the

fact that all voted expenditure must receive Parliaments
prior approval, but also by the system of reporting back
to it, through the Public Accounts Committee, the actual
expenditure incurred against the Grants voted by Parliament
and Appropriations sanctioned by the President.
-401 F1
The statements, which are prepared by Railways and

presented to C & AGs Audit Wing for presentation to the
Public Accounts Committee, comparing the amount of actual
expenditure with the amount of Grants voted by Parliament
and, Appropriations sanctioned by the President, are called
the Appropriation Accounts. The aim is to ensure that the
expenditure is done for the purpose it was actually sanctioned
by the Parliament.
-402 F1
99
8.0)
The Compilation procedure of Appropriate Accounts:
The Appropriation Account for Revenue Demand 3 to 13 is

prepared Department wise, Demand wise, Subhead wise, PU
wise by Executive department and sent to accounts office. The
compilation is done demand wise, subhead wise and suitable
explanation for variations are furnished in consultation with
Executive department. The compiled statement is sent to
F.A. &. C.A.Os office. For more detail please see chapter IV of
Finance code vol. 1.
100
Chapter 5
INSPECTION SECTION
1.
NECESSITY FOR INSPECTIONS:
i)
Though in certain cases original records are submitted,

a large number of accounts and supporting documents
submitted for internal check are not original records, as such
the internal check conducted in the Accounts Office is largely
dependent for its efficiency on the degree of care exercised
by departmental authorities over the accuracy of the original
records.
ii)
iii)
iv)
2.
It is, therefore, necessary to review the original records as

submitted to Accounts and also to test the degree of care
exercised by the executive officers over the accuracy of such
records and to see that they are maintained properly in the
prescribed forms.
Opportunity is also taken at this time to test check such
Accounts, Vouchers, etc. which are not coming under the
purview of internal check or cannot be checked adequately
except at a local inspection.
Inspection of executive offices at Head Quarters and Divisions
shall ensure the accuracy and authenticity of the transactions
rendered by the executives.
RESPONSIBILITIES OF ACCOUNTS OFFICERS:
Divisional Accounts Offices are responsible for:-
The
i)
Inspection of all offices under their Accounts control.
ii)
Inspection of
jurisdiction.

iii)
Railway
Schools
within
their
Inspection of all catering units falling within their

jurisdiction.
iv)
Check of Book Stall, Platform Stalls at stations.
v)
Check of OT/NDA claims at Stations and other offices.
Accounts team is mandated to ask for any record from
101
any office under their accounting control. They have

also the mandate to seize the record with prescribed
procedure it embezzlement or a serious lapse is
suspected in the accounts.
3.
PERIODICITY OF INSPECTION
i)
Schedule of Inspection: It is prepared on the basis of

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

ii)
iii)
iv)
While inspecting Divisional office, one suboffice in

the case of engineering expenditure and at least two
subordinate offices not in charge of a Gazetted officer
shall also be inspected simultaneously.
As far as possible all the subdivisional offices in a division
shall be inspected within the course of two years.
The offices, where there are not many transactions by way

of miscellaneous cash, issue of passes, PTOs etc. may be
inspected once in 3 years to have.
a)
A general review of the procedure relating to initial
accounts of receipts and expenditure of cash and
stores with a view to making helpful suggestions
towards elimination of useless returns, redundancy
of any kind and wasteful methods.
102
Inspection Section
b)
To assist the departmental officers in the matters
affecting accounts, budget or the financial regularity
of transactions.

4.

1.
2.
3.
4.
5.
6.
7.
The inspecting staff shall initial with date on all registers,

documents etc. (Except service cards) examined by them as a
token of their check.
DRAWING UP OF ANNUAL INSPECTION PROGRAMME FOR

ENSURING YEAR:
The Annual Inspection Programme has to be drawn up
in terms of Para 1712 A1 for obtaining FA&CAOs approval
before the starting of the financial year. This Annual
Inspection Programme has to be drawn up in consultation
with associated Audit office with regard to provisions of Para
1706 and 1709 A1. The following details should be mentioned
on the programme.
Name of Executive offices/Sub-Ordinate offices.
Periodicity of Inspection.
Date when the unit was last inspected by Audit/Accounts

office,
When inspections is proposed to be done during the financial
year.
No. of Days and man days programmed for each inspection

with the total No. of days and man days required during the
entire year for inspection purpose.
All units due for inspections may be segregated between

the categories as Major unit/Minor unit. And a separate
inspection scheduled for each category may be submitted.
Detailed analysis may be done to furnish the following
information:-
(i)
Joining time required for the inspection during the
financial year.
(ii)
The remaining No. of days available for inspection.
(iii)
No. of holidays/Sundays and CL/RH etc.
103
8.

The copy of holidays list for the year of Bhopal division is also
to be furnished with the programme.
Current position of compliance of approved annual inspection

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

Ref:-
A certificate starting that all the units, the inspection of

which is due during the ensuring year are included in the
programme without any omissions is also to be furnished.
FA&CAO/I.Au/JBP letter no. HQ/ACS/GA/INSP/001/200910 Dated 04-03-2009
NOTE:- The complete list of various offices on Bhopal division is

annexed as Annexure A.

5.

Based on above guidelines and keeping in view the inspection

Schedule of Audit department inspection programme
of Accounts office has been finalized and shown as
Annexure B.
FURTHER DISPOSAL OF INSPECTION REPORTS.
Based on the findings observed during inspections, Reports

are prepared and submitted to ADFM for approval. After
getting the approval of ADFM, the inspection reports are
issued to the officer unit in-charge of unit inspected. On
receipt, of the replies the remarks are verified for their
genuineness and appropriateness and the matter is closed
if found acceptable. However, in case the remarks are found
inappropriate and unsatisfactory, the concerned unit incharge is written back for corrective actions. On receipt
of further reply, the report is closed with the approval of
Accounts Officer. The Inspection report is issued within 20
working days time from the date of inspection.

104
During the course of inspection, efforts are made to review

old outstanding Inspection reports of Accounts or Audit
department, if any, and the concerned Executive is impressed
Inspection Section

6.

upon for submission of remarks /corrective action at the

earliest.
On receipt, the remarks are verified & forwarded to Audit

if found suitable, otherwise written back to the concerned
branch officer for submission of details of corrective actions
and subsequent appropriate remarks. In addition, reminders
at regular intervals are issued to concerned branch officers for
submission of remarks in the matter of outstanding current
and old audit references. Tripartite meetings are arranged
to finalize Audit reports/Special letters. At the same time,
various periodical returns are submitted to the HQ with the
vetting being done by Audit department, if necessary.
To verify all settlement cases to record recoveries outstanding
and detected during Inspection.
Check Lists for Inspection:
Inspection of various Executive officers is an important

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

The Receipt and issue are matching and confirms to

the real state of affairs.
The liabilities and Assets are matching.
The Book Balance and Journal Balance correspond to

each other.
The allowance claims and privileges are entertained

within the prescribed limit.
105
These checks are given below illustrative and not exhaustive.
7.
The work is executed as per authorization.
LIST OF ITEMS COMMON TO ALL OFFICES NONPERSONNEL
1)
Imprest cash including Spl. Imprest Account.
2)
Postal stamps account.
3)
Franking Machine Account.
4)
Misc. cash receipts and remittances.
5)
Pay orders.
6)
Money value books and machine numbered books.
7)
Register of Agreements, and review of Tenders and
contracts.
8)
Review of Agreements.
9)
Stationery books and forms.
10)
Consumable Stores Account.
11)
Clothing Account.
12)
Dead Stock and Tools and Plants.
13)
R.M.C/Credit Notes issued for carriage of Rly.
Materials.
14)
History Book of vehicles, typewriters etc.
15)
Review of Inspection Notes of PHODs/ HODs.
16)
Review of Outstanding Audit and Accounts Inspection
Reports.
17)
Review of Bills Register.
18)
Review of Telephone bills.
19)
Review of Log Book.
20)
Review of Monthly Progress report/PCDO to Rly. Bd.
etc.
21)
Review of Stores ledger.
22)
Review of Progress of expenditure.
23)
Writeoff and sanctions.
106
Inspection Section
24)
Register of Library Books, Receipts, Accountal and
issues.
25)
Review of Implementation of Rly. Bds orders.
POINTS REQUIRED TO BE SEEN ON EACH OF THE ABOVE QUOTED

ITEMS ARE GIVEN BELOW:
1)
IMPREST CASH:
i)
The cash balance on hand to be verified by actual
count and tallied with the book balance, Certificate to
this effect should be recorded in the Imprest register
under the initial of the inspecting official.
ii)
Proper arrangements exist for the safe custody of the
cash.
iii)
Prescribed Imprest register is maintained in the
prescribed form, and the amounts spent are recorded
correctly. (G.SIF/E.1411)
iv)
Recoupment is made periodically.
v)
The Imprest Account is balanced and closed daily.
vi)
Amount spent from Imprest are correctly payable
and authorised by the Gazetted Officer.
vii)
The sanctioned amount is not in excess of requirement,
and a justification exists. In case Recoupment is made
occasionally, reduction of Imprest is to be suggested.
viii)
Special Imprest sanctioned for a specific purposes are
closed immediately duly surrendering the balance
amount after the special event is over.
ix)
Amount spent from special Imprest are spent only for
the specific purpose for which it was sanctioned.
x)
Separate Imprest Account is maintained and not mixed
with general Imprest, if the Imprest is sanctioned for
special purpose.
107
2)
POSTAL STAMPS ACCOUNT:
i)
Service stamps on hand to be verified by actual count
and tally the same with the balance as per Register of
Stamp Account.
ii)
It should be seen that ordinary postal stamps are not
used and only service stamps are used.
iii)
Recoupments of service stamps are properly
accounted in the postal stamps account.
iv)
Full particulars are given in the postal account
register for the usage of service stamps.
v)
The postal stamp account is balanced daily/
periodically, and initial of the in charge/supervisor is
obtained in the Resister of Stamps Account.
vi)
If the postal stamps are used for Registered articles
etc., necessary acknowledgements obtained from the
postal authorities are pasted in the Postal Stamps
Register.
vii)
Test check of the entries in the register is made to
ensure that the stamps have been used for office use
only.
3)
FRANKING MACHINE ACCOUNT:
i)
Proper sealing of Franking Machine is to be checked.
ii)
Opening and closing Nos. are entered in the stamps
register.
iii)
Proper account for usage of stamps from the Franking
Machine is recorded in the stamps register.
iv)
When stamps are recouped from Postal Department,
necessary entries are made in the register (opening
and closing numbers)
v)
Rebate @ 3% for the usage of Franking Machine is
claimed from the Postal Department periodically, and
the amount realised is accounted for in the Railways
account.
108
Inspection Section
4)
MISCELLANEOUS CASH RECEIPT AND REMITTANCES:
i)
The office is authorised to receive the cash, and
proper receipt is issued for all receipts of cash.
ii)
The receipt books have been kept under lock and key
in the personnel custody of the official responsible.
iii)
The amount received is remitted to the cash office
or to the nearest station without any avoidable delay
and the amount is remitted correctly.
iv)
Proper Acknowledgment is obtained and pasted to
the counter foil.
v)
Proper account is maintained for the receipt and
deposit of cash.
vi)
Necessary returns are submitted to the Accounts
Office monthly.
vii)
Correct allocation is furnished on all the vouchers.
5)
PAY ORDERS:
i)
The Pay Orders issued by the office are checked to see
that the drawl of amount is justified and sanction of
the competent authority is obtained.
ii)
Pay order book is properly maintained and necessary
certificate is recorded to the effect that all the folios
are checked and found correct.
iii)
All the pay orders are stamped with seal of the office.
iv)
Pay order books are kept under lock and key.
v)
Separate register is maintained for issue of pay
orders.
vi)
After the amount is drawn, necessary vouchers are
sent to the Accounts Office in time.
vii)
Amount drawn through pay order is spent immediately
and only for the purpose for which it is drawn.
109
6)
MONEY VALUE BOOKS AND MACHINE NUMBERED BOOKS:
i)
Proper Accountal and receipt of the books is to be
checked with the memos issued by the Press/Forms
Depot.
ii)
Proper arrangements exist for safe custody of the
books.
iii)
The numbers of unused books agree with the entries
in the stock register.
iv)
All issues are properly acknowledged.
v)
Obsolete or excess to requirements are not stocked.
vi)
Prompt action is taken in the event of loss/theft of
money value books/or folios, viz. Gazetted notification,
report to the Police, etc. to avoid fraudulent usage of
the Money Value Books.
6)
REGISTER OF AGREEMENTS:
i)
A Register is maintained in the prescribed form.
ii)
All agreements entered into with the contractors are
entered in the register.
iii)
Complete details viz. name of the work, Agt. No., and
date, letter of acceptance of the agreement, total
value of the Agt./contract, Date of commencement,
due dt. for completion, particulars of EMD/SD,
extension granted if any, special remarks if any etc.,
are furnished.
iv)
The register is periodically reviewed and initialed in
the inspection sheet.
7)
TENDERS AND CONTRACT:
i)
Tenders have been called for with the sanction of the
ii)
Accounts concurrence is obtained before calling for
Tenders (in the case of Single, Limited and Special.
Limited Tenders and all other cases where necessary)
iii)
Tenders have been called for, only after preparation of
110
Inspection Section
Estimate, sanction of Indents (For supply), drawings

and plans etc.,
iv)
A register is maintained showing all particulars of
tenders received.
v)
In case of sale of Tender Forms, proper account is
maintained for receipt, accountal and remittance of
cash.
vi)
Tenders have been called for well in advance of the
date of commencement of work.
vii)
All relevant rules and procedures have been followed
for calling, opening, and finalisation of tenders.
viii)
Terms and conditions stipulated in the Agreement/
Contract are as per extant orders.
ix)
TCP has been formed as per the provisions of S.O.P. /
Rly. Bd. Instructions.
x)
There is no deviation from the standard conditions,
special conditions, if any, and have the prior approval
of the competent authority.
xi)
The lowest tenders only have been accepted.
xii)
Negotiations if conducted are as per latest instructions
on this subject i.e. only with the lowest Tenderer etc.,
9)
REVIEW OF AGREEMENTS:
i)
Agreements Register should be checked to ensure
that all details are furnished,
ii)
Some of the agreements should be checked with
reference to
a)
Progress of the work,
b)
Supply of Steel, Cement is as per the Agmt. /
Schedules.
c)
Test check the measurements recorded and
bills claimed.
d)
There is no delay in progress of the work/
supply.
111
e)
Proper action has been taken against the
Agency in case of delay.
f)
Final Bills are prepared without delay
on completion of the work and final
Measurements are taken. If there is undue
delay in preferring final bills, the reasons for
the delay should be analysed.
g)
All records connected with execution of the
work are maintained correctly.
h)
The claims preferred are only to the extent
the works are executed/supplies made.
i)
Variations to the execution of work or supply
of items are regularised with the sanctions of
the competent authority as per rules.
j)
CR is drawn at the earliest, booking the
necessary expenditure towards material &
establishment.
10)
STATIONERY BOOKS AND FORMS:
i)
Necessary Registers are maintained properly for
receipts and issues.
ii)
There are no abnormal issues.
iii)
Issue of Xerox paper etc. proper account is
maintained separately.
iv)
Stationery purchased locally in case of urgent need
is done after obtaining proper sanction and as per
provisions of SOPWCR.
v)
Computer Stationery is purchased only after
necessary sanction is obtained from the competent
authority, and the purchase is made as per the
provisions of SOPWCR (Part C) and extant rules on
this subject.
112
Inspection Section
11)
CONSUMABLE STORES ACCOUNT:
i)
Register is maintained to record the receipt of
consumable stores.
ii)
Empties are checked with Issue Notes.
iii)
Issues are as per the prescribed scales.
iv)
A responsible
periodically.
12)
official
has
attested
balances
CLOTHING ACCOUNT:
i)
Requisitions are prepared in accordance with dress
regulations.
ii)
Proper records are maintained for all receipts and
issues and issues are made with clear signature/
acknowledgment.
iii)
The receipts are checked with Issue Notes.
iv)
Winter uniforms are issued as per the eligibility
criteria, and as per periodicity.
13)
DEAD STOCK - TOOLS AND PLANT:
i)
The Dead Stock Register is maintained in prescribed
form showing the purchase reference, P.O. No. etc.,
ii)
The receipts, Issues and balances are correctly
posted.
iii)
Receipts should be checked with the firms Invoice,
Issue Notes etc.
iv)
The Day Book of Receipts should be checked to see
that all Tools and Plants received have been accounted
for in the Tools and Plant Register.
v)
Proper arrangements exist for accountal and safe
custody of the Dead Stock items kept in stock.
vi)
All items available/received are properly and
correctly taken in the Dead Stock Account.
vii)
Proper nomenclature, price list No, measurements
etc. are indicated against each item.
113
viii)
Separate Folios are kept distinctly for items like, PCs,
VCR, TVs, Cameras, and Audio Visual equipments,
Fridge etc.
ix)
Departmental Stock verification has been done
periodically and certificate recorded against each
item.
x)
Un-serviceable Tools and Plant are condemned
under proper authority and sent to stores Depot.
Expeditiously.
xi)
Suitable reference furnished in the Dead Stock
Register for the Articles sent to scrap Depot, Transfer
to other units etc.
14)
RAILWAY MATERIAL CONSIGNMENT NOTE (RMC NOTES)

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

WRITERS ETC :
i)
Complete History of the Vehicle, viz. firm name, cost
of the vehicle/item, date of purchase, models etc. are
furnished in the Register.
114
Inspection Section
ii)
A detail of spare parts supplied, free guarantee period
etc. is indicated.
iii)
Expenditure incurred for repairs, overhauls and
spare parts are posted correctly in the register and
the monetary limit prescribed for various factors are
not increased.
iv)
In the case of new machines, free servicing if any
agreed to by the suppliers is availed of.
v)
Released unserviceable spare parts after repair are
accounted and sent to the scrap depot under DS8.
16)
REVIEW OF INSPECTION NOTES OF GM/PHOD/RLY. BD.

OFFICIALS:
i)
Necessary register is maintained to watch the
finalisation of the observations made in the Inspection
Notes.
ii)
Observation/Objections pointed out have been
properly attended to.
iii)
All the Inspection Notes have been pursued properly.
17)
REVIEW OF OUTSTANDING AUDIT AND ACCOUNTS

INSPECTION REPORTS:
i)
Outstanding Audit and Accounts inspection
Reports are properly attended to and the mistakes/
irregularities have been rectified.
ii)
In the case of Pt. II Accounts Reports, the finality of
the action rests with the Executive Units where the
inspection was carried out. Action taken on the Part.
II reports should be reviewed during inspection.
iii)
In the case of Stock Verification reports and TIAs
reports, it is to be seen and reported that any DAR
case is pending against any employee or against the
unit due to Stock Verification Reports or TIAs reports.
iv)
It is to be enquired and reported that, is there any
115
18)
vigilance enquiries dealing with financial matters are

pending.
REVIEW OF BILLS REGISTER:
i)
A register to record the bills received in the office is
maintained and postings made correctly.
ii)
Postings are made as and when they are received.
iii)
Bills have been passed expeditiously and the
outstanding on hand is not heavy.
iv)
Paid bills for the month selected should be traced in
the bills register, and checked.
v)
The register is put up to the controlling officer
periodically for review.
19)
REVIEW OF TELEHPONE BILLS:
i)
A separate Register is maintained to indicate the
receipt of Telephone bills with separate folios for
office and residential phones.
ii)
All the Bills passed are properly entered, there is no
unusual/abnormal charges passed for payment. In
such case, the reasons for such payment should be
reviewed.
iii)
In the case of residential DOT phones, the excess
amount than permissible has been recovered.
iv)
Charges for Private Calls (Trunk Calls) etc. have been
recovered from the officer concerned.
20)
REVIEW OF LOG BOOK:
i)
A general review of the Log Book pertaining to all
department vehicles with reference to the movement
of the 4 wheelers and 2 wheelers (RPF) and entries
made therein.
ii)
Whether, the journeys performed are systematically
and correctly recorded with time, date, and kms.
116
Inspection Section
Travelled, and signature of the officer travelled.
iii)
In case of private trip, it has to be checked whether
necessary charges have been billed and collected.
iv)
Consumption of petrol to commensurate with the
kms. Recorded in the Log Book.
v)
Petrol and other consumable oil drawn are recorded
in the LOG Book systematically.
21)
REVIEW OF MONTHLY PROGRESS REPORT MPR/PCDO:
i)
It has to be seen whether, the activities/ progress
indicated in the report are correct.
ii)
Arrears if any reflected in the report are factually
correct.
iii)
Reasons for not achieving the target are factual and
correct.
iv)
In case of MPR on execution of works, test check of
some of the items, indicated in the report should be
reviewed with the connected records.
22)
REVIEW OF STORES LEDGER:
i)
Separate ledgers are maintained for Cl. I, Cl. II
consumable stores, empties etc.,
ii)
Postings are up to date and test checked with
connected records like DMTR etc. to ensure the
correctness of the postings.
iii)
Proper records are maintained for receipt and issues.
iv)
Balances are arrived correctly.
v)
Stocks are not held unnecessarily.
vi)
In case of overstock items, proper action is taken for
disposal.
23)
REVIEW OF PROGRESS OF EXPENDITURE:
i) Proper records are maintained for the incurrence of

expenditure.
117
ii)
Expenditure incurred is sanctioned and same is as
per the provisions made in the Budget.
iii)
Debit/Credit relating to the year is booked in the
same years account.
iv)
Adequate action is taken to obtain all Dr./Cr. and to
account for in the same year.
v)
All adjustments, AMs, Transfers are accounted
without delay.
vi)
All expenditure are properly allocated and brought
into the Account.
1)
WRITEOFF/SANCTIONS:
i)
Proper records are maintained for all sanctions and
writeoff.
ii)
Writeoff sanctions have been obtained as per the
provisions of SOPWCR, Codal provisions etc.
iii)
Finance concurrence has been obtained, wherever
necessary.
iv)
Staff responsibility has been fixed, for the writeoff
proposals involving loss for which Rly. Employees are
responsible.
v)
Preventive measures are taken to avoid recurrence
of loss/theft etc., for which writeoff proposal is
obtained.
25)
LIBRARY BOOKS:
i)
A register is maintained for receipt and issues.
ii)
Proper accountal of the books is checked with
reference to receipt vouchers.
iii)
Books issued to the officials are returned within the
prescribed time.
iv)
Books purchased for the library are as per the
requirement, and guide lines issued by Railway
Board.
118
Inspection Section
v)
Books, which are not required for day to day
functioning, are not purchased.
vi)
Books purchased for library are as per the monetary
limits prescribed and had the sanction.
vii)
In case of books lost/not returned, proper action is
taken to recover the cost etc.
1)
REVIEW OF IMPLEMENTATION OF RAILWAY BOARD

ORDERS, INSTRUCTIONS ETC:
During inspections, the inspecting officials should test

check and see whether the important Railway Board Orders,
circulars etc. are properly and correctly implemented, the
instructions if any have been correctly understood and there
is no deviation.
8.

1)
LIST OF PERSONNNEL ITEMS COMMON TO ALL OFFICES

AND POINTS REQUIRED TO BE SEEN ON EACH:
ATTENDANCE REGISTER:
i)
Prescribed Register is maintained, with names and

designations recorded correctly.
ii)
Staff have signed in the attendance Register at the
prescribed time and counter signed by the Controlling
Officer.
iii)
Staff attending late has signed only in the late
attendance and not in the regular attendance Register.
iv)
All the absenteeisms are properly regularised.
v)
Late attendance is properly reviewed and suitable
action taken for condonation/debiting casual leave.
vi)
No staff remains unauthorised absence for long
period and if any such cases, proper action is initiated
against the employee.
vii)
Attendance Register is test checked with leave
account, C.L. card etc. to verify the correctness of
postings of leave/leave availed.
119
viii)
Test checked with salary bills to ensure that wages
are drawn only for the duty period, and absence
during assumed attendance are regularised properly.
2)
SCALE CHECK:
i)
Proper Register/Record is maintained to indicate the
sanctioned posts, category wise.
ii)
Checked with Attendance, Pay Bills etc. to see that the
posts operated are as per the sanction strength
iii)
Book of sanction reference is indicated against each
Department against the posts sanctioned.
iv)
No posts are operated in excess to the sanctioned
strength or without sanction
v)
In case of excess operation, action has been taken to
regularise the posts.
3)
LIMITED CURRENCY REGISTER:
i)
Proper Register is maintained and complete details
viz. category, period of sanction etc. is recorded.
ii)
The date/dates from which the posts are being
operated to be indicated clearly.
iii)
No posts are operated beyond the period of currency
unless it is extended by the competent authority.
4)
SERVICE REGISTERS:
i)
Service Registers have been opened for all the
employees without delay and necessary Medical
Certificate attached.
ii)
All required details have been filled correctly.
iii)
Necessary Thumb impressions have been obtained
and certified by FPE/Responsible official.
iv)
Service records are kept in safe custody.
v)
The Date of Birth recorded in the S.R. agrees with
Medical Certificate, School Certificate etc.
120
Inspection Section
vi)
All necessary entries viz., increment, transfer,
promotion, fixation of pay, option forms for PF, CGIS,
sanction reference of HBA, Scooter Advance etc. are
recorded correctly and attested by Gazetted Official.
vii)
Qualifying service is recorded every year and period
not qualified for pensionable service is recorded
correctly.
viii)
In case of employees, for whom DAR action have been
initiated, suitable entries in the S.R. duly indicating
the punishment penalty, suspension etc. entered
clearly and duly quoting the orders of the competent
authority.
ix)
That the Service Records are periodically reviewed,
by the controlling officials.
x)
In respect of SC, ST and BC candidates authenticated
documentary proof should be available in the SR/
Personal File of the employees concerned.
5)
CASUAL LEAVE AND SPECIAL CASUAL LEAVE :
i)
C.L. cards are maintained properly and C.L./R.H. are
sanctioned by the authorized official.
ii)
Sanctioned C.L. or R.H. is correctly recorded in the
attendance Register.
iii)
C.L. /R.H. are availed within the prescribed limit.
This should be test checked with Attendance/Muster.
iv)
Separate Register is maintained for the purpose
of availing special Casual Leave duly indicating
individual employee name wise.
v)
Proper sanction exists for availing special casual
leave.
vi)
For Grant of Special Casual leave on Sports Account,
the prescribed limit, for representing Zonal, National,
International events are correctly followed and
necessary sanction exist for availing the spl. C.L.
121
6)
COMPENSATORY LEAVE ACCOUNT:
i)
A Register is maintained to watch that the
compensatory leave is sanctioned for having worked
on holiday and the staff has been booked by the office.
ii)
The compensatory leave is availed within a reasonable
period.
iii)
Supervisory staffs are not sanctioned compensatory
rest.
iv)
In the case of staff governed by Factories Act and
the HOER the rest given is in accordance with the
provisions of the said statutes.
7)
LEAVE ACCOUNT:
i)
Leave account is maintained correctly for all the staff
on Rolls, and governed by the leave rules the employee
is governed.
ii)
Advance crediting of LAP/LHAP are made correctly
taking into account the Dt. of joining, period of leave
without pay etc.
iii)
Every leave posting in leave account (Debit) is
supported by leave application, and sanctioned by the
iv)
In the case of commuted leave employees specific
request is forthcoming and the period of absence is
covered by Medical Certificate.
v)
Proportionate reduction in the LAP @ rate of 1/10
for the period of LWP (if any) is done before affording
advance credit every half year.
vi)
In the case of LND, extraordinary leave etc, the leave
period is covered as per the extant rules.
vii)
In the case of LHAP Leave salary is drawn correctly.
viii)
LWP period are recorded correctly in the S.R. and no
wages are drawn.
122
Inspection Section
ix)
No leave is sanctioned/availed without sufficient
leave balance.
x)
Postings of leave account are test checked with
reference to Muster/Attendance register etc. and
Leave balance is brought forward correctly on every
page of the leave account without any over or under
casting of leave.
xi)
Leave accounts are properly attested by the
responsible official periodically.
xii)
Paternity leave is availed by the male employee within
the prescribed time.
xiii)
Maternity leave is availed for the first two living
children and necessary entries about availing the
leave mentioned in the leave record.
8)
EXTRACT OF MUSTER /ABSENTEE LIST:
i)
Extract of muster sent to the personnel department
are test checked with attendance register/muster roll
and to ensure that the extractions are correctly done.
ii)
Leave particulars shown in the Absentee list agree
with the Attendance Register.
9)
TRAVELING
ALLOWANCE:
ALLOWANCE
AND
CONVEYANCE
i)
The T.A. Bills are correctly prepared, signed by the
controlling officials.
ii)
The movement shown in the Journal agrees with
Attendance/Muster Rolls.
iii)
The amount of T.A. claimed are as per the eligibility
criteria based on their Pay and Class of City.
iv)
The movement shown in the Journal are test checked
with Train Time Table to ensure that the claims are
correct.
v)
Conveyance allowance claimed by the employee is
123
10)
admissible as per rules and rate per km. claimed are

as per prescribed rates.
NATIONAL HOLIDAY ALLOWANCE:
i)
The allowance is claimed only for those nongazetted
official, who are essentially required to work on
National Holidays and the booking of staff on National
Holidays had the sanction of the competent authority
i.e. DRM/ADRM etc.
ii)
The staff in whose favour the allowance is drawn has
actually worked on that day as per the attendance
register.
iii)
The rates of allowance claimed are in accordance
with the rates furnished by the Railway Board from
time to time.
11)
OVER TIME ALLOWANCE:
i)
Necessary Registers are maintained to record the
overtime worked and entries attested by the Gazetted
Official.
ii)
Necessity for working overtime should be closely
scrutinized.
iii)
The rate of allowance is correct.
iv)
The actual O.T. worked and allowance claimed is in
accordance with the sanction.
v)
The entries in the Register and O.T. slips have not
been altered without proper attestation.
vi)
The total O.T. allowance claimed agrees with the O.T.
Register.
vii)
Classification of staff is done, as per HOER and that
the calculation of O.T. is correct.
12)
RENT ROLLS:
i)
Rent Rolls are prepared correctly including all the
employees who are in Rly. Quarters.
124
Inspection Section
ii)
Rent, water, conservancy charges shown in the
statement are correctly recoverable from the staff.
iii)
Electrical energy charges are recovered correctly
from all the staff in occupation of Rly. Quarters.
13)
BUILDING REGISTER:
i)
Necessary Building Registers are required to be
maintained by the Engg. Subordinates and a copy
of the same is available in the Personnel Branch for
forcing correct recoveries.
ii)
Complete details viz., Plinth area, type of the building,
electrical installations etc. are indicated both for
service and residential buildings.
iii)
The Register is updated every time when buildings
are constructed/dismantled.
iv)
The Register is periodically reviewed to ensure that
all the Buildings in that particular jurisdiction are
brought into the Register.
14)
LOANS AND ADVANCES (RECOVERY REGISTER):
i)
Details of various advances sanctioned to the
employees are recorded correctly and the recoveries
made are posted correctly individual employee wise.
ii)
Conditions stipulated for grant of various advances
are satisfied.
iii)
Balances of advances are struck correctly every
month and it is ensured that the advances are
recovered within the permissible installments.
iv)
In the case of interest bearing advances, the recovery
of interest is certified well in advance and recovery
towards interest commenced immediately on
completion of principal amount.
v)
In the case of staff transferred from other units, the
recovery of loan amount are correctly brought into
the Register and checked with the LPC. Similarly
125
in the case of transfer of employees to other units,

the LPC reflect the correct amount of loan due for
recovery.
vi)
The Register is reviewed by the responsible official
periodically.
15)
FESTIVAL ADVANCE:
i)
Festival Advance is sanctioned to the eligible
employees based on their basic pay.
ii)
Recovery Register is maintained allotting separate
folios for each festival.
iii)
Recoveries are commenced in time and completed
within 10 instalments.
iv)
In the case of transfer, the amount due for recovery is
correctly indicated in the LPC.
v)
In the case of staff transferred from other units, the
amounts due as indicated in the LPC are recovered
correctly and recoveries posted accordingly.
NOTE: Since, the expenditure on Festival advance is charged to
the salary head and no suspense Account is maintained, a
complete check of recovery is to be ensured during inspection.
16)
DIET CHARGES:
i)
Diet charges statements are correctly received and
details are posted in the recovery Register.
ii)
Recoveries towards Diet Charges are made as per the
diet charges statement.
iii)
The diet charges billed by the Medical Department
are test checked to see that they are correct as per
the prescribed rates.
iv)
Outstanding as per the register should be reviewed
and advised for proper action for recovery.
126
Inspection Section
17)
RECOVERY OF RENT:
i)
Rent and conservancy charges are recovered from
all those employees who are in occupation of Rly.
Quarters.
ii)
Rent has been recovered according to plinth area and
type of the quarter.
iii)
Water charges are recovered from all the quarters
occupied by Gazetted Officers, according to the type
of the Rly. Quarters, at the prescribed rates.
iv)
It has to be checked that Rent is recovered from the
employees, who have been allotted quarter and not
occupied/delay in occupation beyond 7 days etc.
v)
Damaged rent/special licence fee for unauthorised
occupation are correctly recovered as per extant
rules till the quarter is vacated/evicted.
18)
REIMBURSEMENT OF TUITION FEES AND CHILDREN

ALLOWANCE SCHEME:
i)
Necessary Register is maintained to record the
receipt of claims, claims admitted and rejected.
ii)
The claims admitted are correct and supported by
authenticated documents.
19)
PASSES/PTOS:
i)
Stock of passes, PTO books and Blank card passes is
not in excess to the requirement.
ii)
Pass/PTO books available in stock are correctly
entered in the Stock Register.
iii)
Continuity of the Books (Pass and PTO) are checked
and certified.
iv)
Passes and PTOs are issued as per the Rules and as
per the eligibility of each employee.
v)
Necessary Registers are maintained calendar year
wise and all issue of Pass and PTOs are correctly
entered against each employees account.
127
vi)
Passes are issued on correct route, inclusion of
dependent in the pass, validity period etc. are test
checked from the counter foils.
vii)
Family declarations are obtained from all the
employees at regular intervals.
viii)
Separate Accounts are maintained for issue of pass on
School Account, complimentary passes on retirement
Account. etc.
ix)
Used passes are obtained from the employees and
pasted to the counterfoils.
x)
The issue of Emergent Duty Passes are as per the
rules and not issued for more than 7 days.
xi)
All the pass books & PTOs are kept under safe custody.
xii)
Residential card passes are issued as per rules and
separate ledger is maintained for this purpose.
It should be ensured that RCPs are not issued
for employees those who are availing Transport
allowance. Necessary declaration is obtained for
issue of residential card pass.
20)
RECOVERY OF ELECTRICAL ENERGY CHARGES
i)
Advice from the SR.DEE is being received for the entire
employees who are in occupation of Rly. Quarters for
recovery of Electrical Energy Charges.
ii)
Recoveries are made correctly.
iii)
Under charges/over charges if any, are adjusted/and
recoveries made correctly.
iv)
There are no Railway quarters without recovery of
Electrical charges.
21)
RECOVERY OF ADVANCE OF PAY ON TRANSFER:
i)
Separate Register is maintained for watching the
recovery of Advance of Pay.
128
Inspection Section
ii)
Proper sanction is obtained for sanctioning of
Advance of Pay.
iii)
In case the employee has drawn advance of pay before
effecting transfer, the same should be recorded in the
LPC.
iv)
There is no delay in recovery, and recoveries are
completed within a period of 3 months.
22)
NIGHT DUTY ALLOWANCE:
i)
Proper record is maintained for the night duty
performed, and all the entries are attested by
responsible official.
ii)
Employees for whom the allowance is claimed are
eligible to draw the same.
iii)
The weighted hour of night duty has been correctly
calculated.
iv)
The rates of night duty allowance per weighted hour
of night duty are correct with reference to the basic
pay of the employee.
v)
Proper sanction is obtained.
vi)
Certificate furnished are correct.
23)
COURT ATTACHMENT REGISTER:
i)
Register for court attachment is maintained properly.
ii)
Full particulars regarding employees name,
designation, station, staff no., total amount to be
attached and no. of instalments etc., are recorded in
the register and attested by the bill drawing officer.
iii)
Particulars of the court order are clearly written in
the register.
iv)
The amount referred to in the attachment order is
recovered and noted in the register.
v)
Necessary details of payment of the court attachment
to the concerned court i.e. Cheque No. etc. are posted
in the register.
129
24)
GRANT OF TRANSFER ALLOWANCE:
i)
Transfer and package allowance is granted as per Rly.
Bd.s instruction and the revised orders based on VI
PC. Recommendations are correctly followed.
ii)
It has to be ensured that Transfer grant is allowed
based on actual transfers caused out/with reference
to O.O., LPC, Joining report etc.
iii)
In case of employees staying in Rly. Quarters, the
transfer and packing allowance is drawn after
vacation of the Rly. Quarters.
iv)
The composite Transfer Grant in the case of staff
transferred within the Hqrs. /Divl. Area allowed if
the official is actually vacated the residence. This has
to be checked with the authenticated documents.
25)
PAYMENTS UNDER WORKMENS COMPENSATION ACT:
i)
Whether a register is maintained to show the details
of injury contracted while on duty and the payments
made under W.C. Act.
ii)
The amount of compensation paid has been worked
out in accordance with provisions of the act and all
conditions of payment are fulfilled.
iii)
The amounts of 1/2 monthly payments are adjusted
in the leave salary.
iv)
In case of Hospital leave sanctioned, it is as per the
rules and competent authoritys sanction obtained.
v)
It has to be ensured that the workman is a regular
Railway employee and not a casual labour, etc.
vi)
Where the Railway has paid the compensation for
contractors labour by virtue of the provisions in
the Act, it has to be recovered from the contractor
without delay.
130
Inspection Section
26)
STATION PAY ORDERS:
i)
Issue of SPOs are justified.
ii)
The amount withdrawn from station earnings are
permissible items as per the extant rules.
iii)
Accounts copy of the Pay Order is received correctly
in the Accounts Office.
iv)
The SPOs received in the accounts office are properly
checked before adjusting the transaction in the
respective accounts.
v)
The station withdrawals are duly supported by
sanction of the competent authority not less than
a Sr. Scale Officer, SM/ASMs signature, recipient
signature etc.,
vi)
The amount withdrawn is kept in the suspense
account till the transaction is completed, and
necessary vouchers are received.
vii)
In the case of amount withdrawn towards funeral
advance etc., the amount is adjusted in the settlement
dues of the deceased employee.
viii)
The Head of Account shown in the Pay Order is
correct and expenditure adjusted to the correct Head
of Account.
27)
REGISTER OF WITHHELD AMOUNT:
i)
A register is maintained with complete details, viz.
PPO reference, date of retirement, reasons for the
amount withheld etc.,
ii)
Periodical review is undertaken and prompt action
taken for release of the withheld amounts.
iii)
All dues/recoveries are adjusted before the withheld
amount is released for payment.
iv)
Test check of few cases released from withheld
amount to ensure that amount is released for payment
correctly.
131
28)
MUSTER ROLLS AND LABOUR PAY SHEETS:
i)
Muster Rolls are maintained properly and handled
only by the authorised officials viz. SE (P.Way), SE
(Works) etc.
ii)
It is maintained properly rendering it difficult to
tamper with or make unauthorised additions or
alterations in the entries once made.
iii)
To ensure that the Muster sheets are original and
bear the initials of the officer on the right hand corner
and the same is written daily noting the number of
employees present, absent, leave etc, and closed by
the incharge official with initials.
iv)
The name, designation and rate of Pay of the employees
are written correctly.
v)
Labour pay sheets are made in accordance to the
muster and number of days worked by the employee.
vi)
The rate of pay agrees with the service records and is
as per the rules.
vii)
Necessary sanctions exists and the nature of work for
which the labourer is engaged correctly written in
the muster.
viii)
Absence during assumed attendance has been
correctly adjusted.
ix)
The muster roll and paysheet agree with each other
in every respect and correct allocation is given.
29)
PAY BILLS:
i)
Pay and allowances were drawn correctly.
ii)
All recoveries are made correctly.
iii)
No. of days wages drawn were as per the attendance
and absence during assumed period of attendance
has been regularised correctly.
iv)
Special Pay, Personnel Pay, leave salary etc., if any are
drawn correctly and as per rules.
132
Inspection Section
v)
Rent recovery, Elec. Energy recoveries for the staff
occupying quarters are done correctly.
vi)
Increments are drawn correctly.
vii)
CGIS and other statutory recoveries are made
correctly.
viii)
All accompaniments to the pay sheets are attached
and are correct.
ix)
The posts for which salaries drawn are as per the
scale check and necessary scale check statement
attached to the pay sheet.
x)
In case of work charged posts necessary currency
exists for the posts operated.
xi)
In case of Fixation of Pay/revision of pay due to
promotion, revision of the Grade etc. are done
correctly and certified by Accounts Office and suitable
entries made in the service register.
xii)
Recoveries towards Festival advance is made correctly
and immediately after receipt of the advance. This
has to be checked duly connecting the memorandum
of sanction.
xiii)
T.A. claims are allowed based on certified copy of the
T.A. summary by Accounts Office and are claimed
correctly.
xiv)
In case of supplementary Pay Bill proper care is taken
to ensure that necessary certificates are furnished,
and suitable entries are made in the relevant records
to avoid double payment.
xv)
Allocation for the wages and recoveries are furnished
correctly.
xvi)
In case of Running Staff the wages and allowances,
(Mileage Allowance) OT etc., are properly and
correctly drawn.
xvii)
Memorandum of difference is checked carefully for
the differences mentioned there in for every item.
133
30)
REVIEW OF LAST PAY CERTIFICATES:
It should be seen that:
31)
RAILWAY QUARTER ALLOTMENT REGISTER:
i)
The last pay drawn by the employee has been correctly
mentioned in the LPCs.
ii)
Outward LPCs should be test checked with recovery
registers to ensure that the outstanding balances if
any are correctly mentioned.
iii)
In case the employee is in occupation of Railway
Quarter, LPC should clearly indicate the period up
to which permission obtained penal rent if any to be
recovered etc.
iv)
In the case of Inward LPCs, it should be seen that the
amount due for recovery towards loans and advances,
advance of pay if any are correctly recovered. Inward
LPCs should be test checked with pay sheet and
recovery registers.
i)
Allotments of Railway Quarters are made to the
eligible employees as per the priority register.
ii)
There is no delay in allotment or occupation after
allotment.
iii)
If there is delay in occupation of Railway Quarter
after allotment i.e. beyond the permissible time, bill
drawing unit has been advised for recovery of rent
besides stoppage of HRA.
iv)
There is no quarter lying unoccupied for a long time.
v)
There are no instances of unauthorised occupation,
subletting, retention beyond permissible period etc.
If so, suitable action has been taken as per extent
rules.

134
Items that are peculiar to various executive office and

the points to be looked into during local inspections
are given below:
Inspection Section
(III)
ENGINEERING OFFICES (HEAD QUARTERS, DIVISIONS

AND FIELD UNITS):
1)
Tenders.
2)
Agreements and Work Orders.
3)
Measurement Books and Register of M.B.
4)
Standard Measurements.
5)
Contractor Bills.
6)
Contractor ledger.
7)
Muster Sheets/Labour pay sheet.
8)
Stock verification.
9)
Dead Stock/Tools and Plants Register.
10)
Materialsat Site Account.
11)
Check of RE 9B/Challan Books.
12)
Issue of Steel, Cement, to contractors.
13)
Ballast ledger/Engine hire charges.
14)
Ballast Challans.
15)
Building Registers.
16)
Register of level crossings.
17)
Register of sidings.
18)
Review of Money Value Books.
19)
Leasing and Licensing.
20)
Completion Reports.
21)
Monthly Progress Report.
22)
List of failed contractors.
23)
Risk and Cost Tenders.
24)
Variation in Agreements.
25)
Imprest Account.
26)
Machinery and Plant.
27)
Quarters Registers.
135
1.
TENDERS:
i)
The object and purpose for calling Tenders has to be
checked. Necessary estimate and plan is prepared
and sanctioned by the competent authority for the
work for which tender is to be called for. Tender
Register is maintained with all relevant details.
Tender notice has been issued with complete details
and sufficient time as required has been given. EMD
at prescribed rate has been correctly mentioned. The
name of the tenderers to whom the Tender Forms are
issued and the Money receipt details are indicated
in the Register. Cash collected for the sale of Tender
forms has been accounted correctly.
ii)
Tender schedules before floating for Tenders has been
verified by finance (wherever necessary)
iii)
Tenders have been called for in advance of the date of
commencement of work, and due publicity has been
given.
iv)
The rules in regard to calling for limited, and open
tenders have been observed.
v)
Tender opening register is maintained and that this
duly prepared checked and initialled by the executive
and Accounts Officers. It should be ensured that
only firms/Agencies to whom tender forms sold have
tendered.
vi)
Late and delayed tenders are dealt as per instructions
issued by Railway Board / GM
2.
AGREEMENT AND WORK ORDER:
i)
Details of Agreement or work order are entered on a
separate page in the register and particulars of bills
passed entered correctly against each agreement.
ii)
Particularly the Engineers and extension, variations
in rates/qty. have reviewed the register if any are
correctly indicated.
136
Inspection Section
iii)
The rates and the quantities, Agreement value etc.
entered in the register are tallied with the original
Agreement.
iv)
Excess if any have been duly authorised by the
v)
Finance vetting has been obtained before issue of
work orders, if the value exceeding the prescribed
limits.
vi)
There is no deliberate splitting of WOs to avoid
finance vetting.
vii)
Date of completion is correctly mentioned.
viii)
The work has been completed with in the due date/
extended date or reasons for delay in execution
properly recorded.
ix)
W.Os are duly crossed after final payment.
3.
MEASUREMENT BOOKS:
i)
The Register of M.Bs maintained in the AENs office
have complete details viz., Dt. of opening, to whom
issued, when issued, dt. of return etc.
ii)
M. Bs no longer required are returned to AENs office
promptly.
iii)
Proper arrangements exist for preservation of M.Bs
i.e. for 10 years after completion of the work.
iv)
Date of Measurement recorded in the M.B. by the
officials concerned is to be test checked with relevant
record viz., diary, TA Journal etc.
v)
Recording of Measurements are done as per rules.
In case of subordinates the measurements are test
checked by officers as per the prescribed percentage.
vi)
The measurements recorded in the On Account and
Final bills should agree with the measurements
recorded in the M.Bs maintained in AEN/Office. For
this purpose inspecting official should carry certain
paid vouchers of contractor bills.
137
4.
STANDARD MEASUREMENTS:
Test check that the service/residential buildings for which

paintings/colour washing is done as per entries in the
standard measurement books really exists as per the entries
in the Register of Buildings.
5.
CONTRACTORS BILLS:
i)
The inspecting official should carry paid vouchers
(contractors bills) and verified with the MBs available
with AEN/Office, to ensure that the work done for
which payment made agree with the initial records.
ii)
Material statements accompanying final bills should
be checked with reference to materials issued to
contractors according to issue Note/Challans and
the balance quantity returned and accounted for
correctly. Empty cement bags returned are accounted
properly.
iii)
In term of cl.37 (1) of General Conditions of Contract,
all test checks conducted as required by Railway
should be wholly at the expense of the contractor.
Hence, it should be ensured recovery of charges are
effected from the contractors for testing quality of
steel, cement, bricks etc. unless the same is agreed to
be borne by Railway.
iv)
Contractors have accepted the final measurements.
v)
Bills for earthwork are as per the entries in the level
book, earth work statement and measurement books
etc.,
vi)
In case of delay/extension etc. necessary penalty to
be recovered as per the subsidiary Agreement are
done correctly.
vii)
The contractor is not issued materials more than the
requirement. Physical progress of the work has to be
compared with the issues during inspection.
138
Inspection Section
6.
CONTRACTORS LEDGER:
i)
Contractor ledger is maintained properly in the
Accounts Office and all entries are made.
ii)
Separate page is maintained for each Agreement and
the ledger is maintained like a personal ledger of
contractors.
iii)
The bills passed should be test checked with the
entries in the contractors ledger.
iv)
For the stores issued out side the scope of the contract,
the amount is debited in the ledger.
v)
Periodical review and reconciliation of the contractor
ledger with work register is being done.
7.
MUSTER SHEETS/LABOUR PAYSHEETS:
i)
Muster/Attendance of Group D staff is recorded
efficiently in the Forenoon and Afternoon.
ii)
Muster sheets are serially numbered and counter
signed by the authorised official.
iii)
The detail of work for which the labour is engaged is
recorded correctly.
iv)
Labour pay sheet prepared based on muster is correct
and the No. of days wages drawn, after considering
the Absent days etc.
v)
The attendance is test checked at least once in a
month by Executive Official.
8.
STOCK VERIFICATION:
i)
Stock sheets received from the Accounts Department
have been attended to promptly and remarks sent.
ii)
Excess/Shortfall has been adjusted correctly in the
ledger as per the S.V. Sheets, and remarks sent to
Accounts.
139
9.
DEAD STOCK/TOOLS AND PLANT:
i)
Separate ledger is maintained for the Dead Stock
items and Tools and Plant.
ii)
Each entry in the Dead Stock Register is supported by
date of receipt, from whom received, value etc.
iii)
Each Dead Stock item has been supported by proper
identification number for verification and check
iv)
Dead stock viz. brief cases etc. supplied to the officials
are having proper acknowledgement.
v)
T & P issued to the workers are properly recorded and
accounted with employees name and designation.
vi)
Proper action is taken for recovery of the cost of the
tool in the case of non-return of tools after the work
is over, or in the event of transfer/retirement of the
employee.
vii)
It has to be ensured all the PCs, Computer Accessories
etc. are also entered in the dead stock register and
shown to the ASV during verification.
viii)
The inspecting official has to ensure that all the new
items viz., PCs, XEROX Machines, TVs and all other
Electronic items, procured in the office for use are
correctly entered in the Dead Stock Register.
ix)
Jeep/Lorry/Vehicle should also find a place in the T &
P ledger, and the periodical replacement of tyres etc.
should be recorded in the Register.
x)
The usage of XEROX paper, computer floppy etc. have
also to be test checked by the inspecting official and
has to be ensured that proper register is maintained
and entries are made as and when used.
10.
MATERIALS ATSITE ACCOUNT :-
i)
As per the provisions in the Engineering Code,
Engineering subordinate has to prepare MAS return
for all special work etc. costing Rs.3 lakhs and above.
140
Inspection Section
The return has to be prepared work wise indicating

the Materials received, issued and Qty. balance.
ii)
MAS Returns should be sent to District/Divisional
Unit for further necessary action, and carrying out
necessary adjustments as and when materials are
consumed for the work.
iii)
The inspecting official has to ensure whether the
MAS Return are prepared efficiently and necessary
adjustments are carried out. The preparation of
MAS return will reveal the value of Materials held
by the Engg. Subordinate at any particular period of
time.
11.
RE 9B/CHALLAN BOOKS:
i)
RE 9B/Challan Books for issue of stores to other Unit/
Contractor etc. are maintained correctly.
ii)
The Qty issued has to be test checked with the ledger.
iii)
Proper acknowledgements are obtained for all issues.
iv)
Necessary adjustments have been carried out for
issue of stores to other units.
v)
In case of issue of stores to NonRailway bodies, the
cost of the stores is raised correctly. Necessary
departmental charges and other incidental expenses
are included in the claim.
12.
REVIEW OF STEEL AND CEMENT LEDGERS:
i)
As per extant instructions of Rly. Bd. the contract
agency has to use his own steel and cement. However,
if the issues are for petty Zonal Works or issues made
to departmental labour, it has to be seen that the
issues are as per the actual requirement and the work
for which it is issued had the sanction of AEN/other
responsible official.
ii)
The return of empty cement bags by the Contract
Agency has been accounted properly, is to be returned
as per tender conditions.
141
iii)
Proper arrangements exist in the SE/Works for
storage of cement/steel etc. and this aspect has also
to be checked by the inspecting official.
13.
BALLAST LEDGER AND ENGINE HIRE CHARGES BILLS:
i)
The supply of ballast by the contractors has to be
measured and recorded in a register. This has to
be personally maintained by SE/P.Way indicating
the location, quantity etc. This ledger has to be test
checked with the Agreement, supplies made and
Measurement Books etc.
ii)
The purchases are not made unnecessarily.
iii)
Engine hire charges if any advised promptly, to
Divisions/Headquarters for adjustment.
14.
BALLAST CHALLANS:
i)
The accepted copies of the challans have been
properly kept.
ii)
The contractors loading and unloading bills have
been prepared correctly.
iii)
B.T. Trains are not detained on contractors account
more than the prescribed time and in the event if
detention is necessary wharf age/demurrage charges
are collected from the agency.
iv)
The entries in the B.T. Challans agreed with the
Guards Journal concerned.
15.
BUILDINGS REGISTER:
i)
Buildings Register maintained in the SE/Works/
Office has to be verified to ensure that all the buildings
in his jurisdiction are entered with complete details.
All the new buildings and quarters are entered and
number allotted.
ii)
Dismantling of the building is recorded and entries
made correctly with authority.
142
Inspection Section
iii)
Additions/Alterations are done correctly.
16.
REGISTER OF LEVEL CROSSINGS:
i)
Records are maintained to indicate the level crossings
for which maintenance charges are recoverable from
outsiders.
ii)
Details for manned/unmanned L.Cs, Engg. and
Operating L.Cs etc. are indicated correctly.
iii)
The number of staff engaged for maintenance of the
L.Cs is mentioned.
17.
SIDINGS:
i)
The No. of sidings in the jurisdiction of SE/P.Way and
connected records has to be checked.
ii)
Whether the sidings are periodically inspected by
the SE (P.Ways) and the details intimated to Accounts
Office for raising the Debit against the siding owners.
(inspection charges)
iii)
The inspecting official has to check whether any
extra expenditure incurred during maintenance
of siding and if so the cost of the same advised to
Accounts Office for preferring the claim from the
siding authorities.
iv)
The inspecting official has to check whether Railway
Staff working in the siding has availed the rent free
accommodation provided by the siding owner. In such
case, it has to be ensured that they are not drawing
HRA from Railways.
18.
MISC. CASH REMITTANCE BOOKS:
i)
Misc. Cash Remittance Books has to be checked with
reference to the Amount realised towards sale of
Grass, Wooden sleepers if any, and other items for
which cash is received.
143
ii)
The remittance particulars have to be compared with
the acknowledgements received and ensure no delay
in remittance.
iii)
The correct realisation of the Amount has also to be
verified.
19.
LEASING AND LICENSING:
i)
Proper Agreement is executed and all Agreements for
leasing and licensing of Engg. Plots, are available.
ii)
License fee has been paid periodically and action has
been taken in the case of delay in realisation of dues
by levying penalty.
iii)
Licensing of land under Grow More Food Scheme,
has been provided only to the deserving Rly. Staff and
not to outsiders. No fresh cases of licensing under
GMF scheme is given.
iv)
Licence fee is realised correctly.
v)
Necessary Registers are maintained separately for
acquisition and relinquishment and it contain up to
date information.
vi)
Where land has been relinquished necessary credits
have been received.
vii)
It has to be ensured that revision of licence fee has
been made whenever the Board revises the same.
20.
COMPLETION REPORTS:
i)
It should be seen whether for all completed works, the
accounts have been finalised and C.Rs drawn.
ii)
The pending cases have to be reviewed for the delay.
21.
MONTHLY PROGRESS REPORTS:
Monthly Progress Reports indicating the progress of various

phases of works executed/in progress etc. has to be checked.
If there is any abnormal delay, or works not taken up after
awarding the contract, such cases have to be reviewed and
deficiencies if any brought out in the inspection reports.
144
Inspection Section
22.
LIST OF FAILED CONTRACTORS:
23.
A register indicating the list of failed contractors has to be

maintained at Divisional and Head Quarters level. This
Register has to be reviewed by the inspecting officials
.Whether the Register is updated periodically is also to be
seen.
VARIATION IN CONTRACT:
i)
Variations in quantities of any item/items exceeds
25% of the total value of the Tender accepted cost are
correctly dealt with as per extant rules. & Approval of
completed authority for the same is available.
ii)
It has also to be seen that in all cases of variation in
quantities exceeds 25% prior Finance Concurrence is
obtained as per extent rules.
24.
IMPREST ACCOUNT:
i)
Cash Imprest for general purpose and special purposes
like petrol Imprest for welding works etc. has to be
checked by the inspecting official. The actual cash
balance is verified and tallied with Imprest Account
and vouchers on hand verified and certified.
ii)
The Amount spent from Imprest has to be reviewed
to see that they are spent for the correct purpose for
which Imprest is sanctioned.
25.
MACHINERY AND PLANT:
Machineries, like welding machines, generators etc. available

in the field units are correctly accounted and proper history
book is maintained for each item and no machinery is lying
idle or out of commissioning.
26.
QUARTERS REGISTERS:
One of the important activity of SE/Works is the maintenance

of staff quarters in his jurisdiction. While reviewing the Staff
145
9.
Quarters Register, it should be seen that: Proper Register

is maintained for each type, no quarters is lying vacant for
longer period, there is no un due delay in allotment of staff
quarters etc. Railway quarter sublet if any or unauthorized
occupation of Railway Quarters noticed if any during
inspection, the matter should be brought to the notice of
Personnel Department, and to Head Quarters for prompt
action.
SPECIAL ITEMS FOR MECHANICAL AND OPERATING

DEPARTMENT:
1)
Review of Target of Out Turn and Actual.
2)
Review of M & P items and its utilisation
3)
Review of Work Orders
4)
Review of cost of POH of coaches, wagons etc.
5)
Review of Time taken to repair of Rolling stock from
placement to release
6)
Deposit Works Hiring/Leasing of Locos etc.
7)
Running allowance/O.T. of running staff
8)
Review of Man power utilisation in Work shops and C
& W units
9)
Periodical Medical Examinations
10)
Imprest stores
11)
Review of Stores drawn for repair/POH activity
12)
Trip ration of HSD Oil to Drivers
13)
Duty movement of Drivers/Guards at crew control
office
14)
Vision Test Registers
15)
Check of accounts of Printing and Sale of Railway
Time Tables
1.
REVIEW OF TARGET OF OUT TURN:
i)
Railway Board has fixed the Target of out turn of
146
Inspection Section
POH of coaches/wagons for each workshop. The

infrastructure facilities provided in the workshops are
according to the targeted activities. The inspecting
officials has to check the out turn of Monthly/Annual
with reference to the Targets fixed and if there is any
shortfall in the out turn the same has to be analysed.
ii)
Incurrence of expenditure in the workshop should
corelate with the outturn. This aspect has to be
verified by the inspecting official.
2.
REVIEW OF M & P ITEMS AND ITS UTILISATION:
i)
The Register of Machinery and Plant available in the
workshop has to be reviewed.
ii)
It should be seen that no machines are lying idle or
excess to requirement.
iii)
Under utilisation of Plants and Machines if any have
to be identified and advised for better utilisation or
transfer to other needy units.
iv)
It should be seen that no Machines are kept out of
commissioning within the warranty period. If so,
action has been taken to replace/rectify the same
within the warranty period.
v)
The condemnation of Rolling Stock if any, has been
done correctly as per Railway Board instructions.
3.
WORK ORDERS:
i)
It should be seen that work orders are issued correctly
and continuity number is maintained.
ii)
There should not be abnormal delay in completing the
job.
iii)
In case of completed work orders the charges have
been brought to account correctly.
iv)
The list of work orders issued during the month has
been sent to accounts promptly and in which no work
orders should be out of series, and the allocation
furnished is correct as per Accounting classification.
147
4.
REVIEW OF COST OF POH OF COACHES/WAGONS:
The cost of POH of coaches/wagons etc. so arrived periodically

by the CME on various workshops in the Zonal Railway should
be checked to see that there may not be abnormal variation in
costs between workshop to workshop for the same activity.
The reason for variation if any has to be analysed.
5.
TIME TAKEN FOR MAINTENANCE OF COACHES/WAGONS:
i)
In the case of Primary Maintenance, Secondary
Maintenance and other repairs, it should be seen that
there should not be undue delay for repair and release
of the Rolling Stock as it would affect the wagon Turn
round.
ii)
The Register of placement and release of wagon/
coaches in the C & W/Depot and Wagon Workshops
should be reviewed. The reasons for delay if any
should be reviewed and reasons such as want of
spare parts etc. should be brought to the higher
authorities through inspection reports, for remedial
action.
6.
HIRING/LEASING OF LOCOS AND WAGONS:
During the inspection of Diesel Sheds/Work Shops, it should

be seen whether any of the locos/wagons leased to outside
bodies like NTPC, APSEB etc.
i)
In such cases, necessary cost has been correctly
estimated and claimed/
ii)
In case of Repair and POH activities done for the
Locos/Wagons of NonRailway bodies, it should been
seen whether the cost of repair has been correctly
estimated and the party deposited the cost in advance.
iii)
The Agreement executed in this connection has to be
reviewed to ensure all charges and other conditions
are correctly incorporated and it is being followed.
7.
RUNNING ALLOWANCE/O.T. PAYMENT:
i)
The inspecting official has to carry the paid OT
148
Inspection Section
Journals of Drivers and Guards during inspection of

SS/Office, Crew Control Office etc.
ii)
The overtime shown in the OT Statement/Journal
has to be compared with the Signing OFF/Signing
ON register maintained in the crew control office
and other records of SS/Office i.e. diaries etc.
iii)
The cases of abnormal OT payment have to be
checked to ensure that there is no fictitious claim and
the Running staff are not intentionally absent/leave
on rotation basis to claim OT.
iv)
OT rules are strictly observed and Minimum roster
hours are observed.
8.
REVIEW OF MAN POWER:
i)
The availability of staff in the Work- shops, C & W
Depots, SS/Office, Diesel Sheds etc. has to be reviewed
critically with reference to the activity performed.
ii)
It should be seen that there is no idle labour and there
is proper Work Justification.
iii)
The prescribed yardstick for requirement of men for
POH of Wagon/Coaches etc has to be compared with
reference to the Out Turn and surplus staff if any
identified.
iv)
Whether the improvement in method of working
due to SOPWCRhisticated machinery, closing down
of Loco Sheds, Unigauge etc. has resulted in the
reduction in Manpower at C & W Depot, Work Shops,
has to be seen.
9.
PERIODICAL MEDICAL EXAMINATION:
i)
The Register of PME has to be reviewed and seen
that all running staff Group C and Group D have
undergone Medical Examination as per the periodicity
and the results recorded correctly.
149
ii)
In case of failure in Medical examination, proper
action has been initiated for alternate job without
delay.
10.
IMPREST STORES:
i)
Imprest schedules have to be checked to ensure
that the stores are correctly recouped and the
requirements are correctly assessed.
ii)
If the consumption of stores is very low, and stock held
is more than the average requirement, the unit will be
advised to review and reduce the Imprest schedules
for the next period.
11.

12.

13.

150
REVIEW OF STORES DRAWN FOR REPAIR/POH ACTIVITY:

Materials drawn for repair and POH activity should be
checked to ensure that the stores drawn are properly
utilized according to the requirement and scrap stores are
returned to the Depot immediately. Shop floor inventory of
stores balances to be carried out in one or two shops during
inspection of Work Shops, Sheds etc.
TRIP RATION OF HSD OIL:

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

off and signing on should be checked and compared with
link arrangements. Abnormal link arrangements, noticed
if any, should be reported in the inspection report to avoid
unnecessary payment of OT/Running allowance.
Inspection Section
14.
VISION TEST REGISTERS:
It should be seen that;
i)
Vision test register is maintained with all relevant
particulars.
ii)
Drivers, Guards, etc. have been medically examined
as per the periodicity and the result of Medical
examination indicated in the register.
iii)
The register is regularly checked and reviewed by the
responsible officials of the Operating Department.
10.
SPECIAL ITEMS FOR COMMERCIAL BRANCH:
LICENCE FEE FROM VENDORS, BOOK STALL KEEPERS, PLAT

FORM STALL CONTRACTORS, CYCLE/SCOOTER STANDS ETC : i)
It should be seen that the licence fee is correctly levied
and necessary contracts have been entered into as
per extant rules.
ii)
The licence fee due has been correctly realised and
remitted to Railways account.
iii)
If the license fee/royalty is to be recovered based on
Annual sales, it should be seen that proper machinery
exists to verify the Annual Sales, and the amount of
license fee is correctly recovered.
iv)
Conservancy/Cess charges to be levied for all Platform
Stall Contractors.
HANDLING CONTRACTS:
i)
It should be seen that the handling of parcels, goods
etc., at important stations based on the result of
lowest tender and proper agreements have been
executed.
ii)
Handling Bills sent to Accounts Office have been
prepared correctly and relevant records available
with the contract agencies.
151
REFUNDS/CONCESSIONS:

It should be seen that the refunds arranged are admissible as

per rules.
ACCOUNTS OF SALEABLE PUBLICATIONS

CONCESSION BOOKS, TIME TABLE ETC.:
VIZ.
TARIFFS,
i)
Proper Accounts has been maintained for each of the
item received and sold.
ii)
Un-sold copies if any are promptly disposed/return
to the required stations.
DEMURRAGE AND WHARFAGE:
i)
Demurrage and Wharf age charges waived at different
levels are as per the permissible limits.
ii)
There should not be any irregular waival, which will
result in loss of revenue to the railways.
iii)
Outstanding dues are realised without delay.
REVIEW OF SIDING AGREEMENTS:
i)
Siding Agreements have been executed for all the
sidings, which have been opened for Traffic.
ii)
Fixation of Trip charges and siding charges are fixed
without delay with finance approval.
iii)
Sidings closed for traffic if any should be intimated
to Engineering Department advising for dismantling,
and disposal of released materials.
iv)
Before closed/dismantling it should be ensured that
railway dues are recovered from the siding owners.
REVIEW OF CLAIMS CASES:
i)
The claims case admitted in the claims branch are
properly investigated before payments are arranged.
ii)
Claims cases involving staff responsibility if any
should be referred to the concerned department for
initiating action.
152
Inspection Section
iii)
There should not be undue delay, in settling the claims
cases.
INSPECTION IN S & T BRANCH:
i)
It should be seen that proper arrangements exist for
disbursement of Telephone Bills to various officers.
ii)
New Connections, Provision of new DOT phone,
shifting of DOT phones etc. is done with the sanction
of the competent authority.
iii)
No delay in shifting/disconnecting DOT phones from
the residence of the officer after superannuation/
transfer etc.
iv)
In case of Temporary connection of DOT phones for
the VVIPs visit (Railway Minister) etc., the deposits
paid to the Telephone Department are adjusted
immediately after the event is over.
v)
Walkie-talkies are supplied only to the essential staff
and every issue had the sanction of the competent
authority.
vi)
Provision of STD/Internet connection to officers are
made only with the approval of Competent Authority
and as per the guidelines issued by the Board.
vii)
The purchase orders for supply of cables, S & T
equipments should be reviewed with reference to the
terms and conditions.
viii)
For loss/theft of S & T cables/equipment it should be
seen that the matter has been reported to Security
Department and adequate measures are taken to
tighten the security arrangements.
ix)
Apart from the above, the following items viz., Review
of stores, purchase orders, regularization of excess
calls, personnel calls made on DOT Phones, etc. are
also to be reviewed.
x)
Assets Register is kept up to date.
153
SECURITY BRANCH :

The following items should seen during inspection of Security

Branch.
i)
The policy and procedure adopted for recruitment of
RPF personnel.
ii)
Deployment of RPF personnel to bandobust duties and
recovery of charges from the concerned Ministries/
Departments. It should be seen that charges are
correctly worked out and included in the claim.
iii)
Log Book of Vehicles, Uniforms Registers, imprest
account, etc.
iv)
Register of Theft detected and reported to the
Security Department by other Departments and
action taken thereon.
v)
Register of Arms and Ammunition reviewed to ensure
that receipt is correctly posted.
vi)
Register of uniform should be checked. The receipt
and issues are correctly accounted for and issues are
properly acknowledged.
vii)
Status of the apprehended cases dealt by RPG and
GRP and the position of enquiries.
GENERAL BRANCH:
Log Book of Office Staff Cars: -
i)
It should be seen that the staff cars have been used for
official purposes Only and the officers signatures/
initials obtained against each movement.
ii)
iii)
154
If the cars had been used for private purposes,

necessary charges as applicable have been billed and
recovered.
Drawal of petrol commensurate with KMs in usage

and there is no abnormal variation in the consumption
pattern.
Inspection Section
iv)
Repairs to the Staff cars have been done as per the
provisions contained in SOPWCR and all major
repairs had the certification from the nominated
officers of the Mechanical Department.
2.
3.
4.
5.
Quarters Registers for allotment of quarters to officer

should be checked to see that there is no delay in allotment of
Railway Quarters and the Railway Quarters once allotted is
occupied within 7 days. In case of delay in occupation (after
7 days) rent at prescribed rates have been recovered besides
stoppage of HRA.
Retention of Railway Quarters after permissible period
during deputation, transfer etc. are dealt with correctly as
per extant rules.
Special Imprest/Entertainment expenses: The accounts
should be verified and satisfied that every transaction is
correctly accounted for and supported by voucher. Balance
amount left over if any after the occasion has been remitted
back to Railways and necessary vouchers submitted to
Accounts Office.
The accounts related to the allotment of Rail Kalyan,

Community Hall, allotment of Officers Rest House
on private account, etc. should also to be checked
to ensure that the amount collected are properly
accounted and remitted to Railways Account. The
rules relating to the allotment are correctly followed.
STORES BRANCH :
1.
REGISTER OF PURCHASE ORDER: IT SHOULD BE SEEN

THAT:
i)
The Register is efficiently maintained. Continuity of
P.O. Nos. is maintained.
ii)
The P.O. is signed and issued by the authorised official.
iii)
The COS is notified of the defaulting firms for action.
155
2.
RECEIPT NOTES:
The quantity received as per firms invoice and quantity

accepted as per Day Book of Receipts/ledger should be
compared to ensure that there is no discrepancy. The stores
received are inspected before delivery as per the inspection
clause wherever applicable.
3.

4.

5.

6.

REGISTER OF SAMPLES:
The register should be reviewed to find out whether proper

accounts are maintained for receipts of samples, their
return to the firms or taking them to stock by credit to Stock
Adjustment Account. The disposal of the nonreturnable
samples should be properly exhibited in the register. All
disposals are covered by proper sanction of the competent
authority.
REJECTIONS REGISTER:
The register should be reviewed to see that the rejected

stores if any are properly disposed off and the firm advised
for replacement. All such rejections should have proper
sanctions and the Accounts Office and COS advised for
suitable action.
REGISTER OF DEFAULTING FIRMS:
It should be ensured from a general review of the register

that the defaulted firms have been noted and orders are not
placed from firms black listed for default in supply.
REGISTER OF REQUISITIONS:
The requisitions received for procurement of stores is vetted

by Accounts Office and requirement are assessed correctly
based on the past consumption. The long outstanding
requisitions should be cancelled in consultation with
executive concerned.
156
Inspection Section
7.
THE PROCUREMENT ACTION INITIATED BY COS SHOULD

BE CHECKED AS UNDER:
i)
Tender notices have been called for as required and
relevant detailed furnished.
ii)
Sale of Tender forms, and the amount received are
correctly accounted and remitted.
iii)
Tenders have been opened at the advertised time,
date, in the presence of Accounts representative and
firms representative.
iv)
All procedures relating to the opening of Tenders have
been correctly followed and there is no deviation.
v)
Tabulation has been done correctly duly filled in all
columns.
vi)
Tabulation forms verified by Accounts.
vii)
Tender committee has been formed as per the
provisions and all relevant facts have been furnished
to the TC members.
viii)
Purchase orders are placed based on the TC
recommendations duly accepted by the competent
authority.
ix)
Purchase order before release has been verified by
Accounts wherever necessary.
x)
Extensions to the due date of delivery/amendment
to the P.O. etc. are given only as per rules and
associated finance views obtained wherever financial
implications are involved.
xi)
In case of defaulted firms risk and cost action has
been initiated as per rules.
xii)
Liquidated damages for belated supply has been
levied as per rules.
8.
SURPLUS STORES:
It should be seen that prompt action has been initiated to form

157
9.

10.
a survey committee for disposal of surplus and nonmoving

stores.
AUCTION SALES:
Stores already declared as surplus should be disposed quickly

through auction sales. It should be ensured that accounts
representative associated in the auction sales.
Apart from the above, the following aspects should also been
checked by the inspection team especially in Depots,
a)
Material in Depots
b)
Bincards (Physical balance with Bincard balance)
c)
Weighment Register
d)
Inward/outward wagon register
e)
Challan Book
f)
Cash remittance Notes in case of auction sales
g)
Empties accounts
h)
Pending stock sheets
ELECTRICAL BRANCH

Agreements entered into with the State Electricity Boards for

purchase of e lectrical energy should be checked.
2.
1.
In case of supply Electrical energy for Traction

purposes, the contract demand and actual
consumption should be checked. If the consumption
is very low than the contract demand or higher than
the contract demand electrical department should be
advised for proper review and to revise the contract.
Meter Reading;
i)
It should be seen that Meter reading has
been done from all the residential quarters
regularly at the prescribed intervals.
ii)
The entries are not been made in pencil.
In case, if the Railway Quarter is locked,
158
Inspection Section
necessary entry made as house locked in

the Register.
iii)
Bills have been prepared in time and sent to
the Personnel Branch and Accounts Office for
recovery without delay.
iv)
Meter reading in respect of NonRailway
bodies viz. Plat Form Stall, G.R.P., R.M.S
offices etc. should be taken every month and
bills raised at the appropriate rates. Whether
bills are issued every Month should also be
checked.
v)
It should be ensured that the electrical energy
charges for outsiders are billed at commercial
tariff rate.

3.
Register of M & P Items:
i)
The register is kept uptodate.
ii)
The condemned Transformers, Electrical
poles etc. are disposed through DS8.
iii)
Assets register is kept upto date.
4.
The imprest stores available with AEF, and other
stock holders should be checked to ensure with supply
and stock. If the issues are less than the stock held,
prompt action has been taken for revision of imprest
schedule.
5.
Surplus stores if any should be reviewed and advised
for prompt disposal.
RAILWAY RECRUITMENT BOARD

POINTS TO BE SEEN: -
i)
Postal Orders, Service Stamps etc. collected from the
candidates are properly accounted.
ii)
There is no delay in encashment of postal orders.
iii)
Remuneration paid to the examiner for setting
159
question papers, and valuation of answers with

reference to Railway Board instructions from time to
time.
iv)
Expenditure incurred in the conduct of the mass
examination with reference to the prescribed
schedules and excess expenditure if any regularised
with the sanction of the competent authority.
v)
Method of disposal of old answer sheets.
vi)
Remuneration/over Time allowance paid to the
staff in connection with conduct of Examination and
interviews.
vii)
Receipt and expenditure account.
viii)
Review of passes issued to candidates called for
interview.
ix)
Proper security arrangements exists for safety and
preservation of records.
x)
Rebate for the usage of franking machine is regularly
claimed from the postal department at the prescribed
percentage.
OFFICE OF THE PUBLIC RELATIONS :

The following aspects should be looked into specially:
i)
Advertisement, display boards, sign boards,
hoardings etc. This phase of work has been
decentralised at the Divisional level. It should be seen
that proper agreements have been entered into with
the advertisement agencies, firms etc. The security
deposit, advertisement charges are collected properly
and remitted to Railways account.
ii) It should be ensured that the payments are made

only by DD/Cash. In the event of payments are made
through cheque (special case) it should be ensured
that the cheques received are realised.
iii)
In the event of nonrenewal of advertisement, display
160
Inspection Section
iv)
CCTV:
board etc., it should be seen that the same are

removed from the Railway premises.
(a)
Agreement has been executed properly and
the charges due are Correctly realised.
(b)
Apart from the licence fee it should seen that
Electrical Energy charges, rent for the space
provided etc. is realised periodically.
v)
Imprest Account and special contingent fund (imprest)
should be checked and seen that the expenditure met
from the same is permissible and proper vouchers are
kept.
vi)
Conducted Tours/VIPs visit:

The accounts for the amount drawn for conducted

tours arranged for VIPs, Media etc. should be checked.
It should be seen that proper accounts for the amount
spent are kept and the balance amount left if any are
promptly remitted to Railway Account.
vii)
Register for Photographic materials:
(a)
It should be seen that proper accounts are
kept towards purchase of films and other
materials used for photography.
(b)
video/photo coverage for the official functions
had the approval of competent authority.
MEDICAL BRANCH
1.
PURCHASE OF MEDICAL STORES
i)
CMD at Hqrs. is authorised to procure Medical stores
as per the provisions contained in SOPWCR. The
purchase orders issued by the CMD for supply of
drugs to the various Railway Hospitals, Health Units
over the Railway has to be checked.
ii)
It should be ensured that the power for procurement
and the financial limit etc. are as per the rules.
161
iii)
The P.Os. are issued as per the extant instructions
and are signed only by the authorised signatory.
iv)
Amendment/Cancellation of P.Os. are issued only
with the approval of the authority who is competent
to procure the Medicines initially.
v)
The purchase orders are placed based on proper
assessment of requirement viz. indents from various
units, and certified by Accounts.
vi)
Proper action has been initiated in the event of failure
of firm to supply the drugs as per the conditions
stipulated in the P.Os.
2.
STOCK OF MEDICINES;
i)
It should be seen that, the stock book of drugs is
maintained up to date. The receipt and issues agrees
with the receipt and issue vouchers. Date of expiry
of Medicines are clearly indicated in the Register
separately and no drugs are kept in stock after the
date of expiry.
ii)
Action has been taken to dispose off the time expired
medicine.
3.
EXPENDITURE ON FAMILY PLANNING;
i)
It should be seen that the expenses involved are
correctly assessed and debits transferred to the
Ministry of Health.
ii)
The special cash imprest drawn towards various
family planning camps are properly accounted for
and balance amount if any remitted correctly.
iii)
Target set by the Railway administration has been
achieved and if not the reasons should be analysed.
4.
OCCUPANCY REGISTER;
i)
The number of beds available and the occupancy
position of the inpatients of the health unit should
be checked to ensure that the facilities provided are
properly utilised.
162
Inspection Section
ii)
Free treatment is given only to the eligible persons.
iii)
In case of admission of NonRailway patients for
treatment, proper sanction has been obtained and the
prescribed charges collected in advance.
5.
DIET CHARGES:
i)
In case of inpatients admitted in the Railway
Hospitals who have availed diet, (other than those
who are eligible for free diet) necessary diet charges
at prescribed rates have been correctly worked out
and sent to the Personnel Department and Associated
Accounts for recovery.
ii)
If the diet is provided to the NonRailway persons and
the retired Railway employees, the required charges
are collected in advance and the accounts are settled
before the patient is discharged.
6.
WASHING OF LINEN:
It should be seen that proper records are maintained for the

number clothes handed over to the Dhabis for wash, date of
issue and date of return. Necessary agreements have been
entered into and the charges paid are correct and reasonable.
7.
REGISTER OF M & P ITEMS, SURGICAL INSTRUMENTS,

UNIFORMS, LINEN ETC.:
i)
It should be seen that necessary registers are
maintained properly separately for the above items.
ii)
receipts and issues are posted correctly and
supported by Receipt Vouchers, acknowledgements
for the issues.
iii)
All the M & P items, surgical instruments available
in the Railway Hospital are in working condition and
if not proper action has been taken to repair or to
dispose the same.
iv)
There is no item kept as idle, without being
commissioned.
v)
Assets Register is kept upto date.
163
DIETICIAN ACCOUNT:
8.
i)
The imprest cash sanctioned and available with the
dietician should be checked and cash balance verified
and certified.
ii)
The nature of transactions met from imprest should
be checked to ensure that the items purchased, viz.,
vegetable, provisions etc. are at reasonable rate and
proper records (ledgers) are maintained.
iii)
It should be seen that the items issued to the cook
are according to the scales and the number of meals,
breakfast prepared daily are as per the requirements
certified by the Matron/Doctor as the case may be.
iv)
Arrangements (Agreement) exist for supply of
Bread, Milk, Meat etc. should be verified and the
requirements/indents placed are not in excess. The
charges paid are reasonable.
v)
The Attendance Register and staff sanctioned for
preparation and supply of diet should be verified to
ensure that there no excess staff.
vi)
The stock available in the storeroom should be test
checked and compared with the ledger balance to
ensure that there are no discrepancies.
vii)
Tools and Plant Register should be verified and
unused/empties are properly disposed off.
LOG BOOK OF AMBULANCE VANS:
9.
i)
It should be seen that the movement of the vehicle is
properly shown and acknowledgements obtained.
ii)
Charges wherever due are properly collected and
remitted to Railways Account.
10.
INSPECTION NOTESREVIEW:
164
The Inspection Notes of CMD and other Officers should

be reviewed to see that proper corrective action is taken
wherever financial irregularities are noticed.
Inspection Section
11.
CASH IMPREST:
i)
The cash imprest should be verified and balance
certified in the Imprest Register.
ii)
It should be seen that the amount spent from imprest
are reasonable and correct procedures are followed.
iii)
In case the medicines are purchased locally to meet
urgent need, sanction of the competent authority has
been obtained for such purchases.
12.
RAILWAY EMPLOYEES CONTRIBUTORY HEALTH SCHEME:
i)
It should be seen that proper records are maintained
and the prescribed charges are collected correctly.
ii)
The amount collected are properly remitted to
Railways revenue. The Money Receipt Book should be
verified to see that the continuity of the serial number
is maintained. Acknowledgements for the amount
remitted, should be test checked with the amounts
collected.
iii)
The membership is renewed every year, No retired
employee is allowed for treatment unless they have
become the members and charges at prescribed rates
are paid correctly every year.
iv)
In case diet is provided to the retired employees under
RECHS, the diet charges are collected in advance or
before the patient is being discharged.
13.
REIMBURSEMENT OF MEDICAL CLAIMS:
i)
All claims for reimbursement of Medical claims
processed in the CMDs/ Consts Office are properly
justified and certified by the Medical Units concerned.
ii)
Relevant rules are correctly followed while processing
such cases before the same being sent to Accounts
Office for payment.
14.
In the case of inspection of Health Units, the inspecting official

should check whether test check at prescribed schedules
on Plat Form stalls (catering items) are done by the Health
165
15.
Inspector/ADMO and necessary records maintained at their

end.
Apart from the above checks, the following aspects should

also be seen during inspection:
i)
Privilege passes, EDP, Medical Passes issued to the
patients.
ii)
Staff quarters.
iii)
Leave records.
iv)
Overtime/NDA records
v)
Scooter/Cycle stand contract if any.
vi)
Deputation of doctor on study leave.
vii)
Honorarium/Fee if any received by doctors etc.
11.
A)

1.

2.

166
INSPECTION OF EDUCATIONAL INSTITUTIONS

RAILWAY SCHOOLS: -
The Head Quarters as well as Divisional Accounts Office

should undertake as part of their inspection programme,
the inspection of Railway Degree College (Hqrs. only)
Junior colleges and schools. The following items should
be seen especially during inspection of accounts of the
Railway Schools in addition to the items common to all the
offices. Similar checks should also be exercised in respect of
NonRailway schools if they are in receipt of Grantsinaid from
the Railway Administration.
CASH BOOK:
The maintenance of Cash Book, Receipts and Payments

should be checked. The Cash Book should be closed daily
and attested by the Principal or Head Master i.e. Head of the
Institution. The Cash Book should have been reconciled with
Bank Pass Book and there should not be any variation.
SPECIAL FEE AND TUITION FEE:
Inspection Section
i)
Special fee collected from the students are as per the
instructions issued by the Railway administration.
ii)
In case tuition fees are collected from the students,
the tuition fee collected from the students should be
remitted to Railways account. The connected Money
Receipts are to be checked, for the amount remitted.
iii)
Tuition Fee and Special Fee collected should agree
with the number of students in the college/schools
excluding those students who are exempted from
collecting such fees.
3.
SCHOLAR SHIP:
Scholar ships received from State Governments, for SC/ST, BC

students should be verified to ensure that they are properly
accounted and distributed to all the eligible students.
4.

5.

6.

SPECIAL FEE:
The special fee collected from the students are authorised

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

Grant received has been properly utilised for the specific
activity for which it was granted. The records exclusively
maintained for this purpose should be checked.
MISC. CASH :
As the Railway schools and colleges are maintained by the

Railway Administration, the schools premises should not be
utilised for any other purposes unless it is authorised. Licence
167
7.

8.
9.

10.
B)

1.
fee collected if any, for hiring the premises should be remitted

to Railways. Such instances if any should be checked.
UTILISATION OF FUNDS:
Apart from special fee collected from the students, Educational

institutions are sanctioned funds from Railway Budget, funds
from Womens Organization etc. The inspecting official
should check the utilization of such funds, and the accounts.
The performance of the school/college with reference to

the students strength and pass percentage in different
examinations conducted during the academic year should be
checked in order to ensure that the infrastructure facilities
provided are properly utilised to achieve the intended
benefits.
REGISTER OF LIBRARY BOOKS:
It should be seen that the register is posted uptodate and

the receipts have been correctly accounted for and proper
system is adopted for issue of Books to students. Necessary
recovery has been made from the students concerned in the
event of loss of Books issued to them.
Tools and Plant Registers should be reviewed to ensure that

all items are accounted for and periodical stockverification
carried out.
INSPECTION OF TRAINING CENTERS:
As a part of the inspection programme, the Headquarters and

Divisional accounts office should include Training institutions
in their annual programmes. All the training institutions
should be periodically inspected at least once in three years
(in case of small institutions) The following items should be
specially checked during inspection of accounts in addition to
the items common to all the units.
TRAINING PROGRAMME:
i)
Training facilities and courses conducted during
the year should be reviewed to see that the training
168
Inspection Section
facilities provided by the Railway Administration

have been properly utilised.
ii)
The number of courses conducted and the attendance
of staff to various courses should be checked. If
the staff attended to each course is less, the matter
should be reported to the Head of the Department
and Personnel Branch.
2.
TEACHING ALLOWANCE:
The number of instructors sanctioned and actual number of

instructors available should be checked. Teaching allowance
to the instructors is admissible only to those Training
Centres as specified by Railway Board. It should be seen that
Teaching allowance is paid only to those instructors who
have been screened by the CPO and paid only to those who
were on deputation for a period not exceeding five years.
3.

4.

5.

CATERING FACILITIES:
The facilities provided by the Railway administration to the

trainees for messing arrangements should be checked.
TOOLS AND PLANT:
Tools and Plant Register should be reviewed for proper

accountal of all items including items provided in the Hostel
to the Trainees. Whether periodical stock verification
conducted or not should be checked.
LIBRARY BOOKS;
i)
Whether Register is maintained for receipts of all
Books with complete details.
ii)
Issues of Books to the Trainees should have proper
acknowledgements.
iii)
In the event of non-return of books/loss of books
the cost of the books should be recovered from the
trainees concerned.
6.
The accounts of uniform, vehicles, passes should also be

checked during inspection.
169
The results of statutory audit are communicated through:

i)
Specific reports of more important and serious
irregularities discovered in the course of Audit of
Accounts, Departmental offices and Station Records.
ii)
Audit Notes detailing minor irregularities discovered
in the course of Audit of Accounts office records.
iii)
Inspection Reports showing the results of Audit of the
initial records of Executive offices. (Para 801AI)
Communication received from Audit relating to the above will
be in the form of Audit Notes, Inspection Reports, Special letters
and Draft paras. Audit Notes and Inspection Reports will be in
two parts.
i)
Part IAudit Notes will detail important irregularities
noticed by the Audit during the monthly test audit of
the Accounts office.
ii)
Part II Audit Notes will cover minor irregularities.
iii)
Part I Inspection Report will show major irregularities
noticed by the Audit while inspecting the initial
records of Executive offices and Part II will show
other cases.
iv)
Special letters of specific Report may deal with
important procedural defects noticed during the
monthly audit, which the Audit may desire it to be
brought through specific reports to be sent to the
Executive Officer.
v)
Any case that the Audit may consider to involve
major financial irregularities or procedural defects
resulting in infructuous expenditure may be taken up
in the form of Draft Paras.

170
The Principal Director of Audit in Duplicate issues audit Notes,

Audit Inspection Reports and Special letters in duplicate. In
the case of Inspection Reports one copy of the same should be
sent to the Executive officer whose office was inspected for
his remarks. The Accounts officer will examine the reports
Inspection Section
12.

13.

and furnish remarks, which should be scrutinised carefully,

and if further clarifications are necessary, this should be
called for from the Executive officer before issue of final reply
to Audit Officer. If the Audit Officer issues further comments
on remarks already furnished, this should be dealt with in
the Accounts Office independently where possible; if not, a
reference should be made to the Executive Officer to obtain
the clarification sought for by the Audit Officer.
DISAGREEMENT WITH AUDIT:
If requested by the latter, make a reference to the General

Manager. However, when the question is one of Accounts
Procedure, the matter should be referred to the Finance
Directorate of the Railway Board. The General Manager will
be requested to obtain orders of Railway Board if the matter
is beyond his competence to decide. While making such
references the Accounts Officer should send a verbatim copy
of the Audit objection and statement of his own views. Audit
Notes should be processed in the Accounts Office and reply
issued.
Replies to Part I Reports, specific reports and important
irregularities should be sent to the Audit Officer as soon
as possible. No formal reply to Audit Notes and Inspection
Reports Part II is required to be sent to the Audit. The disposal
of such Audit notes and Inspection Reports should be made
available to the Director of Audit whenever required.
TIMELINE FOR REPLY TO AUDIT REFERRENCE :
It is of utmost importance that all audit objections in one or

the other form mentioned in Para 2 above should be given
immediate attention. Railway Board have stressed the need
for expeditious disposal of all audit objections and directed
that there may not be any outstanding reports of over 3 years
old. By ensuring that even at the initial stages Audit objections
are dealt with promptly completely and at adequate level,
the need for Audit Officer taking up the same subject in
171
the Principal Officers Meeting and at Railway boards level

could be reduced. In order to ensure their quick disposal, a
proper record should be maintained in the Accounts Office.
The Register, wherein should be entered all the Audit Notes,
Inspection Reports and Special letters with details of action
taken, should be periodically reviewed to see whether final
reply has been issued in individual cases. If the action is
pending with the Executive Officer, the Officer concerned
should be contacted or addressed to furnish immediate reply.
If the action is pending with the Accounts Office, the reports
should be put up to the Accounts Officer with remarks for
delay in the issue of reply. If no finality is reached even after
correspondence, the Accounts Officer should arrange for a
tripartite meeting between Accounts, Audit and the Executive
Officer concerned after fixing the date in consultation with
the Executive Officer concerned and Audit Officer. The
Audit Officers acceptance of the remarks offered during the
discussion should be recorded in the minutes of the meeting
and where further clarifications are called for, these should
be obtained from the Executives and furnished to the Audit
Officer.
14.

172
Executive Officer should also maintain a register showing

the action taken on each audit objection. This register should
be reviewed by the Executive Officer also to ensure that
effective actions have been taken for the disposal of all audit
objections. The Accounts Inspection staff should specifically
examine the effectiveness of the action taken and deficiencies
noticed should be suitably taken up.
MINIMIZING THE NUMBER OF OBJECTIONS:
The draft inspection report should be discussed with the

Executive Officer concerned before making it final. This is
known as intra-conference. Such steps should also be adopted
in minimizing the number of objections and also reduced
unnecessary work. The following steps, therefore, should be
taken in this direction.
Inspection Section
i)
The Audit Officer should discuss draft Inspection
Report and Executive Officer after the inspection is
completed. It is known as exit Conference.
ii)
As per extent instructions, replies to the Draft Audit
Reports i.e. DOS should be sent to the Audit Officer
within 30 days after the inspection is completed.
This will enable the Audit to finalise the reports and
to minimize the number of paras.
iii)
The Executive Officers are expected to verify the facts
and in case they are correct and complete they should
record their acceptance in writing. If it is otherwise,
they should amplify the position to the Audit Officer
in writing so that the Audit view may be based on
complete facts.
iv)
In the case of minor objections, the Executive Officer
concerned should take remedial action promptly and
the fact that such an action is taken should be noted in
the minutes of the discussion so that these objections
may not appear in the reports.
v)
In regard to cases where regularisation by higher
sanction is necessary, these should be obtained
quickly. In the event of any delay in obtaining the
sanction, the Audit may be advised of the position
so that they may consider the inclusion of the item
in the report. In any case, the requirement of higher
sanction should be discussed in the meeting and the
matter should be settled.
vi)
If the Audit Officer has objected to any payment of
recurring nature and if the views are acceptable
to the Accounts Officer, he should place the amount
under objection, the payment being treated as
provisional pending receipt of formal orders from
higher authorities or settlement of the objections by
the Audit.
173

15.

A copy of the minutes of discussion held between Executive

Officer and Accounts Officer should be furnished to the
Headquarters office for information.
DRAFT PARAS:
All the important cases coming to the notice of Audit which

Audit considers to be fit case for incorporation in the C & AGs
Report for Presentation to Parliament will be brought to the
notice of Railway administration in the form of Draft Paras.
A procedure has been evolved by the Railway Board

according to which before any item is taken as Draft Para,
the Principal Director of Audit would generally address, D.O.
letters to the Heads of Departments/FA & CAO forwarding a
statement pointing out the irregularities noticed and asking
for verification of facts and figures. The board for replying
to these references has laid down a time limit of four weeks.
In case, where the verification of the facts and figures
would involve reference to a number of divisions and other
authorities and would require more time for verification, the
PDA should be addressed to extend the time limit suitably.
FA & CAO has to coordinate with PHODs concerned as well as
Railway Board for speedy disposal of Draft paras.
This procedure would enable the Heads of Departments/FA &

CAO to devote adequate attention to the points raised by the
Principal Director of Audit and reduce in a way the number
of formal Draft Paras to be issued. It is therefore, important
that adequate attention should be paid to such references.
174
Draft Paras are generally on the outcome of earlier audit notes

or correspondence from Audit. To deal with these draft paras,
Railway Board have laid down procedure. According to
which Principal Director Audit will prepare draft paras and
addressed to General Manager, sending copies thereof to
the Railway Board (EDA) and the DAI (Railways) Copies of
the Draft Paras will also be endorsed to the FA & CAO and
concerned PHODs. Railway Administration should give their
final reply after consultation with Board within a period of 8
Inspection Section
16.

weeks. The reply should be sent to the Board within 5 weeks

from the date of receipt of Audit Paragraphs so as to allow
time for further enquiry and correspondence within the
overall period of 8 weeks within which a final reply has to be
sent to the Principal Director of Audit.
Keeping the Boards directives in view, these draft paragraphs
should be dealt with promptly and comprehensively at the
highest level possible. As the General Manager is required
to reply to the Draft paras, it is necessary for the PHODs
concerned to personally examine every detail concerning
draft paras so that replies may be well informed, complete
and effective particularly in regard to facts which might have
influenced the authorities concerned at the decision making
stage. At the Divisional level, the Divisional Railway Manager
should nominate a JAG to coordinate the collection of
information at the divisional level. It will be the responsibility
of the Divisional Officer primarily concerned with the Para
to verify the facts and figures furnished therein. The Senior
Divisional Finance Manager/DFM should also give highest
priority in regard to verification of factual information
pertaining to Draft paragraphs.
POINTS TO BE NOTED WHILE DEALING WITH DRAFT

PARA:While dealing with the Draft Paras, the following points
should be borne in mind and complied with by all concerned;
i)
It should be ensured that all important and pertinent
facts having a direct bearing on the case, and the
extenuating circumstances, if any, which if not taken
cognisance of may lead to incorrect appreciation
of the case, are brought out in the supplementary
remarks to the Draft Paras.
ii)
While pointing out the inaccuracy of the figures, the
reasons as to why the figures are considered incorrect
and what in the opinion of the Administration should
be the correct figures, should be clearly furnished.
175
As to the facts also, a similar procedure should be

followed, furnishing the orders, instructions, etc., if
any issued on the subject.
iii)
Procedural lapse pointed out should be verified and,
if approved, the correct procedure introduced. The
responsibility for the lapses pointed out should be
fixed and action taken to prevent recurrence indicated.
Progress made regarding disciplinary action, if any
taken should be indicated. The circumstances, in
which deviations/lapses were allowed to occur,
should be specially examined.
iv)
Where recoveries or overpayments are the subject
matter for comment, action to recover the amount
and the recoveries made so far should be furnished.
v)
It is also necessary to examine, where applicable,
the financial implications, if the Audit contention
is conceded. Where more than one alternative is
possible, the relative economics should be gone into
carefully.
vi)
Where necessary, the points should be discussed
with the Local Audit Officer, along with the Accounts
Officer.
vii)
At every stage, the associated Finance/Accounts
Officer should be consulted and the Draft Paras,
scrutinised conjointly, the comments, etc., duly vetted
by the Associated Accounts Officer with reference to
all available records.
viii)
In order to bring down the outstanding Draft Paras
and furnish satisfactory remarks to Principal
Director of Audit, frequent review meetings with the
concerned HODs should be arranged.
17.

THE FOLLOWING TIMETABLE SHOULD BE OBSERVED

FOR DISPOSAL OF AUDIT PARAS.
i)
Despatch of the copies of paras by the FA & CAO to all
HODs etc. 2days on receipt in Accounts Office.
176
Inspection Section
ii)
Verification of facts and figures by the Executive
Officer primarily concerned with Para and submission
of remarks to FA & CAO = 3 weeks.
iii)
Associate Accounts vetting and scrutinize the
remarks of Executive = 1 week.
iv)
Scrutiny and to obtain GMs approval = 1 week.
v)
Finalisation of the reply and to obtain Railway Boards
approval and forwarding to Railway Administration
remarks to Principal Director of Audit = 3 weeks.
vi)
Discussion with PDA including correspondence, if any
should be completed within the over all period of 8
weeks.

18.

19.

As the overall limit of 8 weeks cannot, at any rate, be exceeded,

it is necessary that the queries from Railway Board should be
attended to on TOP PRIORITY basis.
ACCOUNTS INSPECTION REPORTS: -
The action required to be taken after the inspection is over

has been indicated. After the discussion of the preliminary
report with the Head of Office is completed, the inspection
report should be prepared embodying all irregularities
and objection for which no satisfactory explanations were
forthcoming during the discussion. The inspection report
should be issued finally as soon as possible after the return of
the Inspection party from the inspection. It should be noted
that issue of the report in respect of Main office, which was
inspected, should not be delayed just because the inspection
of subordinate is not completed.
HOW INSPECTION REPORT IS PREPARED:
The reports should be prepared in two parts i.e., Part I and

Part II. These should again be subdivided into nonPersonnel
and Personnel. Particular care should be taken about the
language and tone of the report. All objections should be
stated in simple and polite terms.
177
PartI: This should contain points of major importance only which

may be held to include objections involving recurring over
payments due to wrong fixation of pay, grant of leave and T.A.
under a wrong set of rules etc. and any other irregularities
which are required to be regularised under competent
sanction. The remarks for individual paras should be called
for from the Head of the Office Inspected.
Part II: All other items, which have not figured in Part I should be
included in Part II. The disposal of paras in Part II may be
left to the Head of Office inspected. He should however, give
suitable remarks as to the action taken by him against each
item in the report before filing it. The Accounts Officer should
during his next inspection, review the remarks recorded on
the Executive officers copy of the Part II of the report and
satisfy that suitable action has been taken on the points
raised therein.
178
Part I of the Inspection Report should be prepared in Triplicate.

One copy will be retained in the Accounts Office as Office copy
and Two copies sent to the immediate superior of the Officer
whose office was inspected, with a request that one copy may
be forwarded to the Head of the Office Inspected for remarks.
In the case of Divisional Office, all Part I Inspection Reports
should be sent to the divisional officers personally. The officer
whose office was inspected should return one copy with as
complete replies as possible through his immediate superior
to the Inspecting Officer. Before forwarding the replies, the
immediate superior should satisfy that they are correct and
complete and where necessary should have them amended
or amplified to avoid further correspondence. The remarks
so received should be scrutinised in the Accounts Office and
further action that may be necessary taken under the orders
of the Accounts Officer. If any cases of serious irregularities
come to light in the disposal of Part I of the Inspection
Reports the details thereof should be entered in the Register
of Serious Irregularities and the progress of their disposal
carefully watched.
Inspection Section
Part II of the Inspection Report should be made out in

duplicate. One copy should be retained as office copy and
other copy sent direct to the officerincharge of the office
inspected with the request that the irregularities pointed
therein may be regularised and the recurrence of such
irregularities guarded against. Any items of objection, which
has a bearing on the work of the Accounts office, should be
noted down and pursued with the sections concerned.
20.

the work allotted to them diligently and whether there
is any tendency to do the work casually. Test check should
particularly be conducted at least once in a month by SO and
all officers. The test checks should not be of routine nature
rather they should focus on system improvement, procedural
lacuna and lapses. The underlying idea should be efficient
disposal without any violation of rules and procedures. The
checks should also reflect the updated skills of the officer.
- [PARA 803 A1]
21.

S
NO.
Recording of results of Test- Check:-

a manuscript register in the form given below:-
Item of
work
test
checked
2
Extent of
Test check
prescribed
3
Particulars
of vouchers
elected for
test check
4
Name of the SO/

SSO (A) who had
test checked the
item
5
Result
of Test
check
6
Whether the discrepancy in col.6

has been pointed
out by the supervisory staff
7

official; the test check is required to be made in accordance
179



22.

23.


test check.
Test- Check of registers:

should be put up for inspection by Officers.
Periodicity of submission of Test- Check of
register to Officers:

180
Chapter 6
STOCK VERIFICATION

The object of the stock verification by the Accounts

department is to ensure that the said material accord with
the description and specification and the balances appearing
in the books and excess or deficiency, if any, noticed on such
verification are properly investigated and accounted for. It is
to ensure that book balance and ground balance tallies and
they are properly maintained. During the verification of any
unit and stock verifier has to ensure that

Every item is verified after proper counting,

weighment, and measurement in presence of
responsible representative, subordinate or ward
keeper or stock holder himself.
No items and tally books are left without verification.
No unaccounted stocks are lying at Depot, ward

and office of the subordinates. In case unaccounted
stock is found, reason has been recorded by the stock
holder.
Weighing machine used for weighment, is being

checked before verification.
Proper arrangement exists for the safe custody of
materials.
Suitable measures exist against loss due to pilferage,

fire and deterioration.
The godown floors are cemented and, in cases where

such floorings do not exist, the stacking is not done on
the ground but on platforms made of unserviceable
rails and sleepers.
Is the stacking of heavy materials done in racks and
lines?
181
Are tools and petty items of consumable stores kept

in lock and key.
A proper locking arrangement exists for the Depot.
2)
Materials of every day use such as soap, matches,

towels, dusters etc. are kept under lock and key.
Fire extinguishers and other fire
arrangements are handy in the depots.
protection
Inflammable stores such as petrol and oil lubricants

(POL)are not kept in close proximity to consumable
items such as waste cotton, sleepers, wooden fittings
etc.
Whether material is being issued strictly on First in
First out basis or not.
PROCEDURE FOR VERIFICATION
While verification of store following steps are to be followed:
ii.
iii.
iv.
vi.
i.
v.
182
Ensure that items for which verification is to be done,

is presented in full quantity under certification by the
custodian with nothing left to be produced.
Complete verification of ground balance and get it

certified by witnessing official before analysis of
book balances is undertaken.
Ensure that the labour staff allotted for verification is

sufficient and that the scale, crane and other facilities
are available for verification, wherever necessary.
Check up the scale to ensure that it is in proper
working condition.
Ensure that stores are kept under proper bins and

racks with duly painted P.L. Nos. on them to facilitate
easy identification of stores in stock.
Have a complete survey of the ward to ensure that

the stores taken out of the bins/racks and disturbed
stacks are put back in their proper places.
Stock Verification
vii.
Ensure that a stores representative is available to

witness the stock verification.
ix.
Ensure that all the receipt and issues postings are

upto date on the date of verification.
viii.
x.
Obtain all bin cards/tally cards of the period to be

verified from the ward on the date of verification.
Ensure that as regards the computerized items, the

receipt and issue vouchers relating to the date of
verification are not posted on the bin cards till the
verification results are posted. It should also be seen
that the bin card balance is tallying with Transaction
Register (TR) of the previous month.
2.1)
BASIS OF VERIFICATION:
The verification of stores either held in a stores Depot or with

executive subordinate office should invariably be conducted
with reference to the annual programme approved by the
FA&CAO. The verification of units not contemplated in the
annual programme and also special verification of stores with
the custodian at the request of the controlling officer may
also be carried out with the prior approval of the FA&CAO
provided sufficient man-days are available to accommodate
such special checks and the regular annual programme is not
affected.
3)

Duties of the Inspectors of Stores Accounts (S-3205 to

3208)
Ordinarily the duties of ISAs on verification work are of

supervisory in nature over the functioning of ASV. However
in special circumstances, stock verification may also be
entrusted to them to bring qualitative improvements. Apart
from this ISAs should undertake the following activities:
i)
Collect information regarding formation of new units/

new PLs from all the departments before preparing
the annual Stock Verification Programme.
183
ii)
iii)
iv)
v)
vi) Seize any document/record initial books

stockholder required for further investigations.
viii)
ix)
x)
184
vii)
Prepare Programme of verification work for each

financial year for stores Depots/other units well
before commencement of the financial year and
submit the same to FA&CAO for approval.
Ensure that realistic man days are budgeted for

verification of each and every so that wastage of
man-hours due to non-availability of helping staff is
minimized.
Distribute the Programme approved for the financial
year in such a way that the Programme will be
completed as per schedule.
ISA have to check related documents, records and

measurement books of store at store depots, offices
stations and workshops.
of
Carry out periodical test check of stock verifiers as

authorized by the Stores Accounts Officers to ensure
quality of verification.
Prepare and submit monthly progress report both
in respect of verification work done (May days) and
disposal of stock sheets to the Hqrs. Office by ISAs at
Depots/IS divisions.
Conduct surprise check /Intensive checks/special
checks with special attention to unearthing serious
irregularities at places where the transactions are
heavy and make out reports of irregularities thereon
and follow up until appropriate action is taken up by
the concerned authorities.
Attend to scrutiny and disposal of Stock Sheets /

Narrative Reports by close monitoring and investigate
into heavy discrepancies revealed either in stock
verification or as a result of review of accounts. CoCoordinating ISA of the verification unit must ensure
optimal output of ISAs/ASVs working with him.
Stock Verification
xi)
xii)
xiii)
Weekly Diaries
Field Book
Record Keeping should be proper , safe and secure.
Apart from the above duties the following role of ISA is also
mentioned below:(I)
REVIEWS /OVERHAULING OF ACCOUNTS
The most important role of ISA which he has to play in

controlling of inventory and review of overhauling of
accounts. In case the stock verification programmes by ASVs
exceeds 20 days the overhauling of accounts will be done by
ISAs to see:-
a)
b)
c)
d)
e)
f)
g)
h)
i)
j)
Check of issues as per annual consumptions in relation

with demand and stocking.
Reasons for over stocking if any.
Reasons for an item becoming non moving.

A detailed check of idling assets.
Review of surplus stores.
Review of item being purchased regularly on non

stock basis.
Review of imprest stores to check the cases of revision
as per trend of consumption.
Review of local purchases.
Review of issues and corresponding release of items

as per sanction estimate in case of section work and
also in cases of other work chargeable to revenue.
Review of accounts of stores delivery vans.
In addition to it ISAs to carry out complete review on

emergency purchases, AAC, pending dues in relation to stock
position and also he has to see the issues as first in first out
(FIFO) system to avoid any deterioration of store. He should
also have a proper check on system of proper storing of items
of common use and fire prone.
185
(II)
CAPITAL STORES
Reviving section check of store depot are to be carried out by

ISA each month to see that:-
a)
There is no item left unconnected.
d)
Regular clearance of stores in transit , depot transfers

of purchase.
b)
c)
e)
f)
h)
g)
i)
Accountal is done regularly.
There is no item where documents have been received

but material not received.
Regular clearance of rejected stores within time
and recovery of advance payment and other dues as
inspection charges, storing and supervision charges
if any, if leviable.
Check on system of inspection to see in cases of delay
in accountal on account of late inspections.
All pending claim cases to find out its proper reason.
The system of station clearance check on demurrage

and wharfage charges with entries made in progress
register of depot.
The system of storing of materials and regular issues

towards after speedy accountal.
(III) SV SHEETS AND NARRATIVE REPORTS

ISAs are responsible for proper dealing with SV sheets and

narrative reports, continuous chasing with divisional officers
/stores officers and store holders is also required to be done.
more care has to be taken in dealing with SV sheets and
Narrative reports which involved in:-
A.
B.
C.
186
Theft cases.
Court cases.
Claim cases.
Stock Verification
(IV)

(V)

SURPRISE CHECK
It is a vital role of ISA to carry out surprise check in consultation
with Accounts officer at stores depot ,stores holder on shed,
workshops , stations, offices etc. For carrying out surprise
check no advance information is given and before carrying
out the surprise check items may be selected and detailed
examination of system of accountal issues, storing, disposal,
together with ground balance to check net deficiencies of
the item is to be done. ISA should carry out surprise check
on deliveries being witness by ASV and a report should be
submitted to Accounts Officer for the work done.
Lot Inspection
The scrap material after declared as surplus by store depots
and before auction each lot is required to be inspected by ISA
as without which no material is generally allowed to be sold.
ISA should carry out lot inspection in detailsand with minute
observations. Mainly following points are to be examined:
i)
Proper sanction.
ii)
Proper accountal.
iii)
Proper description.
iv)
Proper location.
v)
Proper quantity.
vi)
Proper approach.
In case of lot inspection of condemned rolling stock like

wagons, coaches and locos the aspect of restricted items is
to be seen very carefully while assessing the approximate
auctionable weight of the item.
Lot inspection of scrap rails of different rail section is done by
taking measurement of each rails as mentioned in sanctioned
SS-11 and sectional weight of lot of rails is arrived at `with 5
% provision are allowed for wear and tear allowed in case of
scrap rails other than 115lb/60 kg. and 52 kg. The delivery
of rails other than stores depots are given on sectional
weightment basis.
187
(VI)

188
AUCTION SALE
Another important role of ISA is witnessing auction sale.
Before start of auction sale ISA should check the auction
catalogue very carefully. It should be ensued that all lots put
up for auction sale have been inspected by respective ISA
of the unit and have been declared ok for sale. If lots have
been declared as withdrawn by ISA it is to be seen that all
such lots have been withdrawn from auction sale. ISA should
carry out a check on entry fees deposited by the bidders in
the acceptable form and each bidder have been provided with
a token thereof .
During the course of auction sale ISA should remain more
vigilant and should watch that:(a)
All bidders have proper token in support of entry
fees.
(b)
The system of auction adopted by auctioneer is as per
rule.
(c)
The bids are being obtained lot wise and unnecessarily
combined bids of two or more lots are not taken
without being bid rejected earlier.
(d)
Immediately after the highest bid is accepted by the
depot officer auctioneer should declare the name
of purchaser and he should issue a slip showing lot
no. ,quantity, rate ,name of the purchaser etc. if any
change or addition has been done by auctioneer the
matter should be brought to the notice of supervision
officer.
(e)
During the course of auction ISA should have closed
watch on ring formation among the bidders and if any
such event is noticed he should bring it to the notice of
depot officer and accounts officer concerned.
(f)
The bids are not accepted abnormally lower than last
auction rates, if such occurrence is noticed the matter
should be brought to the notice of accounts officer
who will further check from list of reserve price
supplied by depot officer after auction.
Stock Verification
After the auction sale is over ISA is required to do the following

work:

a)
b)
d)
Check bid sheets, bid auction catalogue and special

announcements.
Check of proper deposition of EMD with Railway

Account .
c)
Check of SA-6 forms.
Preparation of auction sale report showing the details

of auction held.
(VII) ACCOUNTAL OF SALE ISSUE NOTES BY ISA

The main reasons for lying heavy credit balances in sale

suspense due to non accountal of sale issue notes. For
minimizing of such balances, ISA should have a manuscript
register with them showing the details of sold lots delivered.
In this register a column should be made showing the date
of continuity no. of sale issue note which will help the
administration in minimizing credit balances.
(VIII) SHOP FLOOR INVENTORY

In the major workshops and sheds the aspect of shop floor

inventory is of very important nature. Shop floor inventory
highlights the following facts
a)
b)
d)
c)
e)
Over stocking of stock and non stock items on

shop floor thus blocking the railway revenue on
unproductive investments.
Excess drawal of materials than MUF fixed up.
Trend of consumption in relation with drawal and out

put.
Disposal of scrap or released items.
Wrong drawal of materials.
In addition ISA is supposed to carry out check on idling

machines make and buy comparison in case of shop
manufactured items including revision of rates , which will
189
help the administration in field of better managerial control

3.1)

on inventories.
Duties of Account Stock Verifier.

Stock verifiers are required to verify the ground balance by
actual counting/weight or measurement as the case may be
of the following:

a)
Stores in the custody of stores department.

b)
Imprest or surplus materials in the custody of subordinates on line.

c)
Material-at-site of the work.

d)
Charged off materials in the workshops, sheds and
elsewhere generally as far as they are susceptible to
check.

e)
Timber in the Carriage Workshops.
f) Consumables

g)
Tools and plant, dead stock in the custody of
subordinates and offices of all departments of the
Railway.

h)
Fixtures and fittings of electrical items at various
service Buildings.

i)
Surprise and special verification of stores as per
instruction of the administration.

In addition to these, ASVs are assigned the duties of
witnessing the deliveries of scrap stores sold in Auction etc.
The results of the stock verification are compared with the
ledgers and the deficiencies, if any are brought out in the
SV sheet. The major irregularities, i.e. procedural lapses,
wrong classification, bad condition of storage, damages,
etc. are brought out in the form of Narrative Report. One
copy of SV sheet / Narrative Report is submitted by ASV to
the stockholder and his controlling officer with a request to
offer the remark/verification on the deficiencies. Similarly
one copy is submitted to SR DFM along with the completion
certificate and completion report.
190
Stock Verification
4)
ACCOUNTAL AND DISPOSAL OF SCRAP MATERIAL

4.1)
The materials of different kinds which are no longer required

for the purpose for which they were procured by consuming
department on Railways are called scrap items.
1.
Railway workshops.
4.
Melting scrap from various sources.
4.2)

Sources of arising of scrap

2.
3.
5.
P. Way scrap.
Condemned Rolling stock.
Misc. scraps from various stores holders.
Each item of scrap sent to the nominated stores depot will be

supported with relevant DS-8 Note showing PL NO., Name of
the depot , Date, description and quantity of material together
with the remarks of condemnation recorded on DS-8 note and
one copy is returned to sender for his records. In stores depot
each DS-8 note is accounted for by giving continuity number.
ISAs during their visit to stores depot. should check the

proper accountal of DS-8 Note. The ferrous scraps received
in depots are verified by ISA/ASV and therefore it has been
exempted from stock verification. Hence there should not be
any item left unaccounted. So far as P. Way scrap is concerned,
during the course of lot inspection to be close by ISA, it should
be ensured that proper DS-8 Notes exists.
Disposal of Scrap
Each kind of stores duly surveyed by survey committees(other

than those items exempted from survey) and sanctioned
by competent authority including condemned rolling stock
where BUOs have been received are put up for auction sale.
After auction sale SA6 is prepared by stores depot with the
help of particulars mentioned by auctioneer in Bid sheet.
The purchaser will deposit Earnest Money to the auctioneer
immediately after the acceptance of his Bid and turns up
to auctioneer by depositing balance amount and VAT. The
191
5)

auctioneer issues D.O. and production of DO to auctioning

officer a letter for delivery is issued. The delivery is given by
stores holder in the presence of ASV and a representative of
RPF. Sale issue notes are prepared except in case of rolling
stock and heavy machineries where accountal is with depot
officer concerned and thus disposal of scrap is done.
CONTROL AND SUPERVISION
5.1)
The ISAs and ASVs attached to units are administratively

controlled and supervised by; the concerned SR.DFM.
However, they are under professional control of FA&CAO /
Stores.
i)
Voucher collection.
iv)
Preparation of stock verification sheets duly

comparing the inventory summary (ground balance)
with the verified ledger balances.
Main steps of Verification

ii)
iii)
Physical verification.
Voucher check in respect of receipts and issues and

checking of balancing errors.
v)
The Stores, whether in a Stores Depot or with a department

should be verified by Accounts Stock Verifiers as per the
following periodicity:
5.2)
Narrative report on procedural irregularities.
Frequency of Verification
(3310-S)
SR.
No.
1.
2.
3.
192
Nature of Stores
Materials at-site of works
Stores with Imprest Holders

All tools and plants
Periodicity
Verification
of
Once in a year
Once in two years
Once
years
in
three
Stock Verification
4.
4.1
4.2
4.3
4.4
5.
6.
7.
8.
All materials in a depot whose accounting is

brought under computerization are verified
As under :
Category A Items:
All items having an annual usage value of Rs.
35.25 Lakhs
Category B Items:
All items having an annual usage value of
Rs.4.8 Lakhs and above, but below Rs. 35.25
Lakhs
Category C Items:
All items having an annual usage value below
Rs.4.8 Lakhs
Category D Items:
All items that have had no issues for twelve
months and over
once
in
months.
six
Once in a year
Once in two years
Once in two years
Provisions in Catering Department,

subsidized hostels and hospitals
Once
in
months
Dead stock lien T&P items, equipments, etc.

pertaining to Hospital/Running Room
Once
years
in
three
Once
years
in
three
The T&P items and equipments supplied to

catering department, Subsidized hostels etc.
Computer equipments and Hindi Books
four
Once in a year
An annual verification programme is prepared sensitivity

analysis and based on the above provisions after receipt
of sanctioned to this program from FA&CAO, Sr ISA
(Coordination) will distribute the program stockholder wise
between the ASVs. ASVs in turn will verify the physical
balances as compared with the ledgers. The routine physical
verification of the stock comprises of:
(I)
(II)
Imprest / surplus material in the custody of

subordinate on line.
Material at site of work.
193
(III) Fuel, coal, HSD oil with loco (Optg and Mech
Department)
(IV)
(V)
(VI)
Engg. Plants reserve.

Dead stock.
Tools and plants.
(VII) K-Oil at stations.
(VIII) Voucher check. (Receipt and issue)
In the office of SR. DFM the details of SV sheets / Narrative

Reports are entered in register no 3261/S wherein full details
such as year, stockholder, SV sheet number, Narrative Report
number, date, deficiencies, etc. and their day-to-day progress
is watched by SR ISA (co-ordination). Theremarks/replies of
SV sheets / Narrative Reports received from executives will
be scrutinize by ISA and will be put up to SR DFM for closure,
if acceptable. Otherwise reminder / rejoinder will be issued
for further clarification.
6)

Outstanding SV sheets / Narrative Reports to end of the month

will be brought out in a statement department wise and year
wise, which is the part of the document submitted to HQ. in the
monthly progress report. Similarly the performances of the
ISAs during the month i.e. lot inspection; test check of ASVs
special checks, handing over of scrap, etc will be submitted
to HQ. Monthly progress report and monthly performance
report is submitted to HQ before 5th of the following month
through SR DFM.
ESTIMATING ANNUAL MAN DAYS REQUIREMENT
Man days should be estimated for a year taking into account

frequency of verification indicated in the preceding Para
and man-day/hours required per item depending upon its
average balance.

194
According to the above processor annual stock verification

program of the division along with the number of man days
required during the year as well as the currency of the post
i.e. ISA/ASVs will be submitted with the approval of Sr.DFM.
Stock Verification
7)
MAIN REASONS FOR DIFFERENCE BETWEEN GROUND

AND BOOK BALANCE
Error in posting of receipts and issue vouchers and correct

quantity in the ledger.
a)
Calculation/arithmetic errors.
d)
Posting twice in the same bin card/ ledger/ tally

book/account
b)
c)
e)
f)
g)
h)
i)
j)
k)
l)
n)
m)
Cross issue/ cross postings

Omission of postings
Error in counting, weighing, at the time of certification

of receipts and issues
Omission in presenting a lot, wrongly kept elsewhere,
for verification.
Presenting an item already issued and debited but not

dispatched to the party for verification
Pilferage or fraud
Defective weighing machines incorrect weighment
Wrong issue of one material for another similar

in appearance, which causes shortage of the item
actually issued and excess of item wrongly shown as
issued in the books.
Not posting an issue already made, due to said issue

not being posted or being rejected by computer
leading to shortage. Similarly, not posting a minus
issue or a receipt will show an excess.
Loss of materials in the ward for any reason including
over lifting will show shortage.
Actually issuing quantity less than shown on an issue

note will show an excess.
Items difficult to issue in precise quantities like

frequent issues on weight or very large numbers or
items issued in running lengths can result in excess
or shortage ground balances.
195
8)
EXPLANATION OF DEFICIENCIES
SR.
NO
CAUSES OF DEFICIENCY
PARTICULERS TO BE FURNISHED
Materials issued but not

Accounted for
Party ,voucher no, date, quantity and

why issue was not accounted for
Due to cross issues
Due to
weather
Material lost in transit
Materials
verification
Loss due to theft, fire etc
196
fluctuation
of
escaping
Material
sent
for
metallurgical test to be
done by CMT
Material classified under
a lower class by the stock
verifier due to damage or
condition of the material.
Other issues not covered

by the above
Relevant entry noticed under other

account having similar items, S.V.
sheet folio item no brief description
and size surplus quantity recorded
Date of last verification and quantity

then verified, quantity of material
subsequently received and issued &
shrinkage allowed
Why the papers were not shown to
the ASV or for inclusion in the verified
balance as per Para 1228-s, what
action has since been taken to finalize
the loss
Particulars of quantity, where it was
lying and how it escaped verification.
How the material has since been
taken to account through department
verification
Same as for item(4) above
------do----
Quantity verified as surplus under

hand second (or scrap) with
particulars of AV sheet folio item
numbers
Suitable remarks depending upon the
nature of the case
Stock Verification
10
Causes of deficiency not

known
Defect in procedure, party at

fault, action taken to avoid similar
discrepancy in future including
recovery in part or whole of the cost
of material found missing due to
neglect
(Para 3263-E )
Note: Corrective entries are to be made under competent sanction

& got verified by ISA before stock sheet can be closed
9)
S r.
No
1
3
4
6
7
EXPLANATIONS FOR EXCESS
Cause
of
Deficiency
Material received
but not taken to
account
Materials subjected
to
previous
fluctuations
of
weather
Due to cross issued
Materials issued
but not removed by
indenter
Error
verification
Other causes
in
Causes of surplus
not known
Particulars to be furnished
Party sending the material, voucher number
, date, quantity , how accountal was over
looked
Date and quantity in stock during the
verification; quantity of material subsequently
received & allowed shrinkage etc.
Relevant entry shown under other similar

items
Party, voucher number;date;quantity,why was
the material not removed, why adjustment
D/note was not prepared to write back the
issues
Description and quantity of the material
is correctly included in the verification,
reference to folio and item nos,quantity
of shortages adjusted against such items.
Has the error since been rectified through
departmental verification ?
Suitable remarks depending upon nature of
case
Defect in procedure, party at fault; action
taken to avoid similar discrepancies in future
Note : In all the cases corrective entries should be made and got
certified by ISA with suitable remarks before the stock sheet
could be recommended for closed.
197
10) OBSERVATIONS TO BE MADE DURING

VERIFICATION OF ENGINEERING DEPARTMENT

a)
b)
d)
c)
e)
f)
g)
STOCK
Non-accountal of materials received from contractors

as well as from other sources and unauthorized
transfer of materials.
Failure to account for released materials fully
adopting lesser weights for released materials.
Unauthorized issues of material.
Issue transactions not vouched properly.

Excess issues of material.
Failure to carry forward closing balances.
Non- admission of stock verification consecutively for

several years on various pretexts.
11) OBSERVATIONS TO BE MADE DURING

VERIFICATION OF MECH. DEPARTMENT
STOCK
i)
Non-Accountal of costly materials like paints, sheets

and other parts and release.
iii)
Mixing up of new items with serviceable/released

items and mixing up of serviceable released with
unserviceable items to cover deficiencies in stock.
ii)
iv)
vii)
v)
vi)
viii)
ix)
198
x)
Over-drawl of issue transactions by the Shop/Shed to

end of financial year.
Fictitious issue/receipt transactions.
Non-Accountal of Imprest stores.
Non-Accountal of records of diesel oil pump sheds

and check of flow meter.
Charging- off of costly oils from ledgers without any

vouchers.
Substitution of costly item of woolen blankets with

cheap items.
Charging Off axle oil/K. oil/cotton wastage periodically
without actually issuing the said materials.
Non-Accountal of huge quantity of HSD oil.
Stock Verification
12)

MONTHLY PROGRESS REPORT:

a)
At the end of each month, the Accounts Stock Verifier
(ASV) should compile and submit the Monthly
Progress Report from the weekly Diaries in the
prescribed form duly filling in all the columns
provided in the format.
b)
In carrying out their work as per programme, the
accounts stock verifiers should note the frequency
of verification of the various categories of stores
and should undertake checks only if they are due for
verification during the year. If, on visiting the stations,
the checks are found not due or a store holder is not
existing, etc., the accounts Officer (stores) should be
advised accordingly with necessary details and other
checks at the station to be taken up if due, or he should
proceed to the next station of verification, where
minimum loss of time is involved in such journey.
c)
The ASV may come across in course of their visit,
existence of any new stock holder(s) at these stations.
The particulars of such stock holders should be
noted and advised to the Stores Accounts Officer for
necessary action.
d)
The Stock Verifiers should normally complete the
checks allotted to them within the allotted number
of days provided for each checks. The number of days
allowed for each check is based on the time actual
taken in the previous years and also the number
of items held by the stock holder as advised by the
departmental officer. Wherever the ASV feels that he
would not be able to complete a given check within
the allotted time and he should submit necessary
justification well in advance of the completion of
the check, for extension of time, for verification and
obtain sanction of the Accounts Officer for exceeding
the number of man-days provided for the check. The
extension requested for, should normally be on the
following lines:199
i)
ii)
iv)
iii)
Increase in the number of items held over the

last verification (the number of items actually
increased should be clearly indicated).
Increase in the stock held over the last
verification (the quantities actually
Increased should be clearly specified.
Increase in the number of works over the last

verification (the increase should be clearly
specified).
v)
vii)
e)
f)
Stock verification of pilferable and consumable items

like Kerosene, Paints etc., should be taken first before
assessment. On visiting a unit for verification, ASVs
should first assess the quantum of work involved,
arrangement of materials, availability of labour,
availability of weighing facilities, etc. and examine
whether the check can be completed within the
time allotted and submit justification for extension
of man-days wherever considered necessary, on the
lines suggested above, well in advance of the expiry
of the time allotted for the check in question.

200
vi)
Increase in the length of the section held by

the stockholder over the last
Verification. (It should be clearly indicated as

to what extent there would be increase in the
verification work).
Any other specific cause/causes due to which

verification
programme is Likely to be
affected warranting extension.
When Stock Verifier attends the Hqrs. office on the

last day of every month for receiving payment, he
should submit the following returns to the ISA
concerned without fail for review :I.
Completion documents including Stock sheets

and Narrative Reports
Stock Verification
II.
Progress report for the month.
III.
Field Book.

IV.
T.A. Journal.
V.
Special reports
13)
TEST CHECK:
During the occasion of their test check of the stock verifiers

work ISA should examine the following aspects and comment
upon the same in their report.
a)
Attendance of the S.V. and the time of arrival at

venue of verification.
c)
Whether the Field Book has been maintained in the

required manner.
b)
d)
e)
f)
Whether the books have been closed as required

herein.
Whether initials of the custodian have been obtained

against the relevant item in the Field Book in respect
of inventory taken up to date preceding the date of
ISAs test-check.
The stock of selected items verified by the stock

verifier on the date preceding the date of test check
should be re-verified in the presence of the S.V. and
custodian and submit a report in case of disagreement,
after updating for subsequent receipts and issues
should be submitted.
The ISA may also carry out surprise check of one or
two key items on such an occasion and scrutinize
the accounts maintained for the items so selected
from the date of last stock verification to the date
of commencement of the surprise verification and
submit the stock sheet with special report, if any.
201
14) EXPEDITIOUS FINALISATION OF STOCK SHEET AND

RECOVERY LOSSES

A JPO has been issued on WCR on the subject which covers

all important aspect for disposal of stock sheets. The JPO is
reproduced as under:
As per boards order ,stock sheets should invariably

be settled within a period of six months.
Delay in finalization of stock sheets results in

attendant problems, viz- non availability of records,
missing stock sheets, retirement of staff prima facie
responsible etc.
14.1 PROCEDURE
14.1.1
Details on Stock Sheets While issuing a stock
sheet for any stockholder, the stockholders name,
designation, and date of superannuation shall be
prominently mentioned on top of the stock sheet.
14.1.2
Action by Stockholder The stockholder shall
scrutinize the stock sheet immediately on receipt and
submit his remarks explaining the shortage/excess,
etc to his controlling officer within a period of 45
days.
14.1.3
Action by Controlling Officer The controlling
officer would scrutinize the remarks submitted
by stockholder and forward the same to his branch
officer in divisions and depot officer in sheds and
workshops , as the case may be , within 20 days of
receipt.
14.1.4 The branch officer/ depot officer will submit it within

next 15 days to the concerned accounts officer, after
due scrutiny, duly explaining the shortage/excess,
etc.

202
14.1.5 However, if remarks furnished by the stockholder

explaining the shortage / excess are not found
satisfactory by the controlling officer, he will himself
Stock Verification
investigate the matter or through his nominated

person and furnish the remarks through his branch
officer or the officer in the workshop /shed /
construction unit to the account officer concerned
within a period of 80 days from the issue of stock
sheet indicating the responsibility fixed for shortage/
excess.
14.1.6 In case the stockholder is under orders of transfer,

care shall be taken to obtain his remarks for any
outstanding stock sheet before relieving him from the
post. Proper handing over and taking over of stores
between the relieved and the relieving stockholder
shall be ensured and stock sheets outstanding shall
be specifically mentioned in the handing over/taking
over.
14.1.7 Controlling officer shall bring the JPO to the notice

of the stockholder at the time of taking over of the
charges.
14.1.8
Action in the event of unsatisfactory explanation
by the Stockholder In case of shortage pointed
out in the stock sheet which could not be explained
satisfactorily within specified time, the amount
shall be recovered from the stockholder/staff
held responsible by the controlling officer after
giving him show cause notice and considering his
representation. The employee shall be expected to
give his reply within a period of 15 days from the
issue of notice. The reply, if received in time, shall be
expected to give his reply within a period of 15 days
from the issue of notice. The reply , if received in time ,
shall be considered within a overall period of 30 days
from the issue of the said show cause notice. If , no
reply is , received from the employee within 15 days
of time of show cause notice or the reply submitted
is not satisfactory than the recovery of amount shall
be initiated with the permission of respective branch
203
officer in the division and concerned JAG/SAG officer

in other units, the decision to recover the amount will
be communicated to the employee by the controlling
officer and recovery started.
14.1.9 In Case of unexplained excess, suitable disciplinary

action will be initiated.
14.1.11 While seeking supplementary clarifications, the

accounts officer shall make endeavour to raise
all points of doubt, on the basis of the available
information, at the first instance. He shall take care to
remove possibility of unnecessary correspondence.
14.1.10
Action by Accounts Officer The accounts officer shall
ensure complete scrutiny of the reply so as to be able
to either issue closure advice or seek supplementary
clarifications within a period of 10 days.
14.1.12 On receipt of a reply by way of clarification on the

doubts raised, account officer shall check the same for
completeness, accuracy and relevance.
14.1.13 He shall seek any further clarification only once more

and only to clarify any further information submitted
by way of first clarification.
14.1.14 Therefore, in case the reply and clarification are

acceptable as satisfactory, the accounts officer shall
issue a recovery advice (with the permission of
not less than a JAG officer of Accounts department)
against the defaulting Stockholder to the branch
officer of the stockholder, within 15 days.
14.1.15
Recovery procedure in case of established
shortage Action taken against the staff held
responsible as well as amount recovered / to recover
shall be indicated in the remarks column of the stock
sheet.

204
14.1.16 The controlling officer shall advise the amount to

be recovered to the concerned pay sheet preparing
and passing units which shall ensure recovery from
Stock Verification
salary / other dues of the staff held responsible for

loss. The controlling officer shall ensure that the
recovery process is started immediately, in no case
later than one salary cycle after the receipt of the
recovery advice.
14.1.17 A copy of the deduction list after completion of

recovery will also be sent by the concerned personnel
officer to concerned accounts officer, who had issued
the stock sheet, for his information and further
necessary action.
14.1.19 In cases where the controlling officer is also the
personnel officer, he shall ensure the same action and
recovery in suitable installment will be made.
14.1.20 The concerned bill preparing unit shall maintain a

register indicating amount due for recovery, amount
recovered and balance recoverable amount.
14.1.21 In case of transfer of the staff, the amount outstanding

for recovery if decided, else details of stock sheet
will be incorporated in the last pay certificate, and
the details of recovery made shall be advised to the
parent unit by the new unit which the employee has
been transferred.
14.1.22 Any recovery outstanding on account of stock sheets

will be included in the list of dues outstanding affiants
the employee at the time of his retirement to ensure
the recovery being made from the settlement dues.
14.1.23 The account unit which has issued the stock sheet will
advise the controlling officer, personnel and accounts
officers concerned about the stock sheet outstanding
against a stockholder/staff held responsible with the
details of unexplained shortages, six (6) months in
advance of the superannuation of the stockholder/
staff held responsible so as to ensure expeditious
finalization of the stock sheets and recovery of the
amount of unexplained shortages from the settlement
dues to the employee.
205
15
14.1.24 In case of voluntary retirement /death/ medical

unfitness,etc, it shall be responsibility of the
controlling officer to advise the personnel and
accounts officers concerned for making recovery
from the settlement dues , the final settlement shall
not be made without no due certificate from all
three above.
15.1
THEFT AND CLAIMS CASES
Action expected from the Stockholder in the case of

theft/misappropriation/fraud
15.1.1 Those cases in which stock sheets were

issued on account of theft/misappropriation
/ fraud, the stockholder should immediately,
after due verification, make out a written
report ( FIR) giving facts of incidents , place,
date , time of occurrence, quantity and value
of railway property stolen /misappropriated
, names and suspected persons, if known and
lodge an FIR with the concerned GRP/CITY/
LOCAL police station with the help of post
in charge/RPF without any delay. One copy
of the written report should be given to post
Incharge/ RPF having jurisdiction.
206
Post Incharge /RPF will act as bridge between

Railway Authority concerned and GRP /CITY
police and will assist in getting the case (FIR)
registered under specific section of LAW by
GRP/CITY police. A copy of the FIR and case
reference will be given by the complainant
to post incharge/ RPF for record and
reference into the case, so that liaison may be
maintained by RPF with the concerned GRP/
LOCAL POLICE. Post incharge will co-ordinate
with the city police station and will assist the
Railway Authority concerned in getting a
Stock Verification
15.2
copy of the FIR with case reference etc. The

progress of the case will be collected by the
complaint with the assistance from RPF.
15.1.2 The stockholder will submit a copy of the

FIR, along with case reference etc, to his
controlling officer. Post Incharge / RPF will
also submit his report to his Controlling
Officer and co-ordinate with the GRP Post /
Local Police to obtain progress report etc.
15.1.3 Where a specific case has been lodged under
IPC sections / other acts the stockholder
controlling officer will ensure the attendance
of departmental witness for early finalization
from time to time with Post Incharge/ RPF to
know about the progress of the case.
15.1.4 The controlling officer of the stockholder will

liaise from time to time with SR DSC/RPF
having jurisdiction for early finalization of
police case in the court of law.
Action expected from the Stockholder in the case of
claims lodged with the Commercial Department
15.2.1 In case of stock sheets where claim has been

lodged with CCM/CCO a copy of the claim case
should be marked to the accounts office stock
verification cell.
15.2.2 The controlling officer shall pursue
the finalization of the case with claims
department.
15.2.3 The claims department should finalize these

cases within a maximum period of 6 months
from date of lodging of claim and advise the
controlling officer about finalization of claim
case.
207
16)
TIME SCHEDULE FOR DISPOSAL OF STOCK SHEET
16.1

17)
16.2 The calendar based on the the above procedure as

given in the annexure should be strictly followed.
17.1
(Authority DYFA&CAO/JBP Letter no, HQ/AC/SV/Policy Dtd.

18-12-2008)
MONITORING OF STOCK SHEETS
17.2
208
All officers/ staff dealing with the stock sheets

shall ensure expeditious clearance of the stock
sheets within a maximum period of five months and
recovery of losses pointed out in the stock sheet is to
be ensured.
Status of outstanding stock sheets may be made part of

the PCDO to ensure a close watch on a monthly basis.
Necessary records shall be maintained for proper
documentation. Stock sheets over three month old
should be taken up on the agenda of monthly meetings
at ADRM/ Unit heads level and target should be fixed
for their finalization.
Chapter 7
ESTABLISHMENT SECTION
CHECKS TO BE EXERCISED IN VARIOUS ESTABLISHEMENT
CLAIMS

The main internal checks summarized in the following

paragraphs are illustrative only and not exhaustive.
INTERNAL CHECK OF ESTABLISHMENT CLAIMS

The check exercised by Accounts Officers on the financial

transactions of the Railway on behalf of the Railway
Administration is called internal check. Unless an exception
is specially permitted in any particular case or transaction,
whether relating to receipts or expenditure, it should be
checked cent percent and no transaction should be brought
into account before they have been completely checked.
Internal check is carried out both under pre-check and postcheck system, depending on the transactions.
[ 801 A1]
1)
PRELIMINARY CHECK ON THE PAY BILLS
In the computerized pay roll the CO6 which is a mark or receipt

of bill in Accounts office, is system generated. The deduction
from pay bill like HBA, PF etc. also taken care of by the
system and the recoveries are transferred to the ledger of the
employees automatically. The most important authentication
for passing of bill is CO7 where enfacement is signed by SO /
ADFM or other Accounts officer as per delegation. Generally
checks are carried out at three stages in the Accounts office
i.e., AA, SO and Assistant officer. Section officer is a key
stage of scrutiny and he is a supervisor who keeps the policy
files with him. He is responsible for application of rules and
regulations and is responsible to provide guidance to the
subordinate staff. The SO is also responsible for initial test
checks and MIS of the section. He is required to keep Accounts
209
officer apprised of the difficulties faced in the section and

also status of the work.
Similarly, it is also necessary that the latest amendments in

the rules are known to Accounts staff .In case of over payment,
Accounts Officer is competent to recover the amount earliest
possible even by enforcing the recovery.
The following points should be looked into while exercising

preliminary check on pay bills that: -
A.
It is in the prescribed form, in original and all columns

are duly completed.
C.
The bill is signed by the officer competent to sign it.
B.
D.
E.
F.
H.
G.

210
The bill is authenticated and the signature on the bill

is genuine and is in ink.
It bears a certificate wherever necessary from

the responsible officer that the services for which
payment is claimed have actually been rendered.
If the proof of the correctness of the claim does not

accompany the bill, a certificate is furnished that the
claim has been checked with the relevant documents
and found correct.
The officer submitting the bill attests all corrections /
cuttings.
All required documents are duly attached with the

bill.
The certificates required under rules are recorded in

pay sheets under the signature of a Gazetted Officer
e.g.:i)
ii)
HRA has not been drawn in respect of

those who are on leave, in excess of what is
admissible.
Certified that the Railway servants for whom
HRA has been drawn in this bill have not been
provided with any Govt. accommodation.
Establishment Section
iii)
iv)
It is to be ensured that regular pay sheet is

accompanied by supporting documents like
Memorandum of differences, Absentee statements,
Recovery statements etc.
I.
K.
L.
M.
N.
J.
Certified that all adjustments required in

respect of pay, allowances, deduction etc. on
account of the assumed attendance adopted
for the immediately preceding wage period
have been carried out in this bill based on
actuals for the same period and no items have
been left over unadjusted.
It is to be seen that funds are made available
for Special pay sheets/ Pay orders.
In case of Regular salary whether scale check has

been done and scale check statement is enclosed.
It is to be seen that NDA, NHA, Overtime, Mileage etc.

claimed in the pay sheet is accompanied with relevant
sanctioned statement sanctioned by the competent
authority.
It is to be insured that DA, HRA, Transportation

allowance claimed in the pay sheet is properly worked
out and it is as per the current rules.
It is to be seen that the Washing Allowances, Nursing

Allowances, Overtime etc. are claimed by the eligible
staff and certificate regarding the same is available
on Pay sheets.
It is to be ensured that the pay sheets bear necessary
certificate as mentioned in Para 1205 to 1212 AI .
1.1) DOCUMENTS THAT SHOULD ACCOMPANY THE SALARY

BILLS

The following documents are to be received in Accounts

Office along with the salary bills:
Memorandum of differences (MOD).
211
Absentee statements.
Electrical energy charges statement (once in six

months), prepared after adjusting the amount
recovered in the preceding Six Months against the
amount liable to be recovered on actual consumption
basis.
Increment statements. (Gazetted Officers)
Rent roll statements for the month of April - Rent

variation statements for the subsequent months for
quarters occupied by Railway servants.
Statement of PF recovery.
List of workshop debits, stores debits and station

debits recoverable through the pay bills.
Deduction sheets showing recoveries made through

pay bills on account of:i.
Railway institute fees and subscription.
iii.
Amount due to staff Benefit Fund towards

Loans.
ii.
iv.
v.
Amount due to Railway Co-operative credit

Banks/societies.
Diet charge & recovery statements.
List of premium due on Life Insurance policies

realized from the pay of the insured.
vi.
Court attachments.

vii.
viii.
Income tax schedule.
Statement showing the recoveries of various

advances.
ix.
Allocation statements.

212
x.
xi.
Certified summary of T.A., OT, NDA, and other

allowances.
Sanction of competent authority where
provisional payment is authorized.
xii.
In case an employee is entrusted with custody

of cash or stores, a certificate should be
furnished to Accounts office along with the
settlement bill that they have duly returned
all Govt. property in his charge, the fact
should be indicated in a note attached to the
pay bill. The note should clearly show the
particulars of property not yet handed over
to the Railway and action taken to their value
and the action taken to recover the value of
the same.
1.2)
METHOD OF CHECK:
The internal check of pay and allowances charged through

pay bills should be conducted on the basis of the information
given in the Memorandum of differences (MOD) and the list of
absentees, which accompany the bills. If these two statements
are not available the check is to be made on the basis of the
information given in the bills itself. MOD statement should
invariably accompany the pay sheet.
NOTE: (In regard to Group D staff, the submission of Memorandum

of Differences may be dispensed with in consultation with
the Accounts Officer and the necessary check should be
applied in his local inspections.) Submission of Memorandum
of Differences in the case of Officers Pay Bill is not necessary.
[1205 A1]
1.3)
EXTENT OF CHECK
A complete check should be applied on:
ii)
i)
The details in the MOD or to the corresponding entries

in the Pay bill itself.
The entries under the column Gross pay and

allowances claimed in the bills, to only those who are
affected by the Memorandum of Differences, whether
recorded in the Memorandum of differences or in the
bills.
213
iii)
The entries in the other columns of the bills.
v)
All calculations and totals
iv)
2)
The admissibility of increments drawn with the

statement of increments.
[ 1206- 1212 A1]
Detail procedure for check of various other establishment

claims
(2.1) Workman Compensation Claims

Compensation to Railway servants on death or injuries

attributable to and due to Railway service shall be admissible
under the Workmens Compensation Act, 1923. In cases
where the Workmens Compensation Act is not applicable, the
compensation shall be granted under the Railway Services
Extra-ordinary Pension Rules, as amended from time to time.
[W.C.ACT 1923]
(2.1.1) I.O.D.PART (A) Procedure for IOD cases/Workmen

Compensation Claims:

214
According to W.C.A., 1923 the employee who is

injured on duty or died while performing his duty
will be entitled for compensation. In Railways certain
category of employees who have lost their earning
capacity partially /permanently or died while
performing their duty, are covered under this Act. The
employer i.e. Railway is liable to arrange payment of
compensation to the employee or in case of death to
the legal heir of the deceased employee. The category
of employees treated as workman, is as under: i)
ii)
Temp/Casual labor (who attains MRCL

status)/Permanent employee (except staff
attached in offices).
The category of Pay clerk will fall within
the definition of workman because they, in
the course of their employment, have to do
out door work for disbursement of salary at

different points.
iii)
Bridge Inspector.

iv)
v)
A)
B)
C)
Vendor /waiter
Department.
attached
in
catering
(2.1.2) Types of I.O.D. Cases:
Drivers (loco running staff), Fireman are

treated as workman under section (2) (1) (n)
(i) of WCA.
D.)
Types of Injured on duty cases and rates of payable

amount are as follows:
Temporarily partial disablement
A half of monthly payment of the sum, equivalent

to 25 % of the monthly wages of injured workman
is payable, for a period of disablement or five years,
which ever is shorter.
Permanent partial disablement
Under this category the payment should be made as

per injury specified in part II of Schedule I in W.C.A.
1923 on the basis of certificate issued by qualified
medical practitioner.
Permanent total disablement
An amount equal to 60% of monthly wages of

workman injured multiplied by relevant factor of
Schedule IV of WCA 1923. Or Rs.60000/-whichever is
more.
Death Cases-
An amount equal to 50% of the monthly wages of the

deceased workman multiplied by relevant factor of
Schedule IV of W.C.A.1923. OR amount of Rs.50000/whichever is more.
215
NOTE: Where the monthly wages of workman is more than Rs.2000/his monthly wages for the purpose of clause (c) and (d) shall
be deemed to be Rs.2000/- only.
2.1.3) Conditions for payment under W.C.A. (1923).

Railway is liable to pay compensation to the workman or to his

dependant in case of his death or total or partial disablement
for period exceeding three days, but employer shall not
be liable to pay any compensation in respect of injury (not
resulting into death) caused by an accident, which is directly
attributable to
i)
The workman having been under the influence of

drinks or drugs at the time of accident.
iii)
The willful removal or disregard by the workman of

any safety guard. Or devices provided for the purpose
of safety to the workman.
The employer should also be liable to pay compensation if a

workman contacts any disease, which has arisen out of and in
the course of employment. In the case of workman murdered
by fellow workman on premises of the employer during the
rest, employer is not liable for compensation to the workman.
The compensation claims cases in prescribed forms should
be filled up by personnel department in duplicate and is
forwarded to Accounts Deptt for scrutiny and verification
of the calculated amount prepared as per Schedule I of
W.C.A.(1923).The case will be returned to Personal Branch
dully concurred for obtaining sanction of competent
authority and preparation of Pay Order in favour of Labor
Commissioner. The payment of compensation under W.C.A.
1923 should be made promptly within stipulated period of
one month other wise in case of any delay the family members
of suffered workman can file a suit in the court of law and
ii)
216
The willful disobedience of the workman to an order

expressly given or the rules expressly framed for the
purpose of securing the safety of workman.
Honble Court may pass orders for penalty of Interest @ 12%

or 18 % per annum. The claims are received from the Welfare
section of the Personnel department. The claims are verified
on the basis of the following details:
a)
b)
d)
c)
The various documents furnished like AC message,

Eyewitness statement at the Site of accident, Accident
Report, Post mortem report, Date of birth certificate
etc. are studied in detail.
The relevant factor as per Schedule IV of the Act is
considered for calculating the compensation.
A list of injuries deemed to result in permanent total
disablement and permanent partial disablement is
provided in Schedule I of the Act.
The last twelve months emoluments are also

considered for calculating compensation amount. The
maximum amount payable as amended from time to
time is also to be considered while making payment
as per Para 4 of Chapter 2 of the Act.
2.2) I.O.D. PART B:

2.2.1) EX Gratia Lump Sum Compensation

Ministry of Personnel vide their O.M. NO.45/35/97-P & PW(C)
dated 11-09-98 has introduced a new scheme of Payment of
Ex-Gratia Lump sum compensation to the family of Central
Govt. civilian employee who dies in harness, in Railway the
same was circulated vide RLY BDs letter no. E (W) 99/CP-1/1
Dated. 5-11-99.These orders shall apply to all cases of death
in harness occurring on or after 01-08-1997.The conditions
governing the payments of Ex- Gratia lump sum compensation
and the guidelines have been indicated in the Annexure of
the above O&M. The main condition to be satisfied for the
payment of Ex - Gratia Lump sum compensation is that the
death of the employee concerned should have occurred in
the actual performance of their bonafied duties. As on date
the minimum amount of Ex - Gratia lump sum compensation
217
SR
No.
Condition of Accident
Death occurring due to accident in the course of

performance of duty
Death occurring due to: -
to the family of deceased Railway employee who died in

performing their bonafied duty under various circumstances
are broadly divided into following categories: -
Death occurring due to accident in the course of

performance of duty attributable to Acts of violence by terrorist or anti social elements etc.
(a) Enemy action in international war or boarder

(b)Action against militants, terrorist, Extremists
Minimum Amt.
Payable
RS. 5 Lakh
RS. 5 Lakh
Rs.7.50 Lacs
Rs.7.50 Lacs
The proposals of Ex - Gratia lump sum compensation is

prepared in duplicate with all relevant documents i.e. Copy of
AC Message (XXR), SOD, and Post Mortem report, Rough Sketch
of accident Site. Witness etc. as per guidelines given in GM
(P) JBP Letter no. WCR/PHQ/1410/WEL/Ex Gratia Payment
Dtd 22-08-2006 and submitted to Accounts for scrutiny and
vetting. The claims are scrutinized as per guidelines and put
up to Sr. DFM through ADFM for vetting. While scrutiny of
the case the amount previously paid as Ex - Gratia interim
and through W.C.A. is deducted from the amount payable
through Ex- Gratia compensation scheme and net payable
amount is vetted. After getting approval of SR. DFM the cases
are returned to Personal Branch for preparation of claim
in prescribed proforma and with joint signature of SR.DPO
and SR.DFM it is put up to DRM for approval. After getting
approval of DRM the cases are forwarded to HQ for obtaining
concurrence of F.A. &. C.A.O and personal approval of G.M (As
per instructions contained in Rly BDs Letter no. E (W)/2006/
CP-1/37 Dtd. 01-05-2007).
NOTE: Rly BDs vide their Letter no. E (W)/2006/CP-1/37 Dtd. 0105-2007 has fixed the maximum time limit of three months
218
period to settle down the cases so as to cause minimum

hardship to the claimants.
ANNEXURE 1 (Documents required along with IOD cases)

(1)
AC message (XXR Message) prepared in duplicate

by Depot -In -charge to inform HQ the full family
particulars and Service Record of the deceased
employee. All above documents should be signed by
Depot In- charge and Welfare Inspector and counter
signed by Gazetted Officer of concern Department
and Personnel Branch.
Time Limit:
For Vetting
3 days
A.A. 1 DAY
S.O. 1 DAY
ADFM/SRDFM 1 DAY
Joint Signature 1 Day
2.3)
Proposal cases of Medical reimbursement
When Railway employees or their family members are

taking treatment outside Railway Hospital in emergency
or are referred by Railway Doctor for specific treatment
in Govt. and other recognized hospital or for specific test
from market for which facility is not available in Railway
Hospital reimbursement of medical expenses incurred in
the treatment of the tests is admissible. These proposals are
broadly divided in two categories: -
(I)
(II)
Referred Cases;
When a patient referred by Railway Doctors to Govt.

Hospitals or recognized hospitals for treatment or
specific test.
Non- Referred Cases
These cases relate to a medical condition which

require urgent attention and there is inadequate
time to report the medical condition to a Railway
219
doctor. Instead, to save the precious life, the matter

is referred to a private doctor who is nearest to the
place of incident. Clearly, no referral of Rlys doctor
is available to bear the expenses. All the claims are
received from employees through CMS Will scrutinize
the case as per checklist and guidelines circulated by
HQ vide JPO No. HQ/AC/ENG/MED REIM /459 III
Dtd 10-08-2005.
And as per the CGHS rates list the acceptable

amount is calculated and recommended for vetting /
concurrence as the case may be. When the CGHS rates
are not available case is disposed of with the approval
of CMS in consultation with associate finance. In
Accounts office the case verified against the said
JPO and other circulars issued by Railway Board or
HQ from time to time. When Pay Order received in
Accounts Office the following steps shall be taken:

CO6 No is given to the Pay Order.
Funds are available for the current year.
It should be seen that required procedure is

followed and all documents are available.
Sanction of competent authority is enclosed.
Amount shown on Pay order is tallied with

the amount concurred.
Time Limit: 10 days for vetting/concurrence 03 days for

payment .
2.4)
Proposal cases
Proposals received in the section are broadly on account

of implementation of ACP scheme, restructuring of cadre,
Stepping up of Pay, Pay anomalies in fixation because of not
being considered minimum benefit of Rs.25 w.e.f.01-01-86 and
Rs. 100 w.e.f. 01-01-96 at the time of fixation on promotion.
Up gradation of pay scale, wrong fixation of pay etc.
220
2.4.1) Proposal cases of Assured Carrier Progression (ACP)

Scheme:
Employees particularly at lower level used to retire in the

same grade in which they were appointed. Railway Board
vides their Letter No. PC-V/99/1/1 Dtd 01-10-1999 allowed
two promotions in their service period. This progression is
given after completion of twelve year of continuous service
and second progression at the end of twenty-four year service.
NOTE: These orders are effective from 01-10-99 onwards only.

(Authority: Railway Board Letter No. PC-V/2004/ACP/1 Dtd
31-03-2004)
2.4.2) PROPOSAL CASES OF STEPPING UP OF PAY

The claims are verified on the basis of following details: -
b)
d)
a)
c)
e)
f)
Service details of both (senior and junior employee),

submitted in comparatives statement are checked
with the entry of the Service Record.
Name of both employees are appearing in seniority

list.
It is ensured from service register that senior
employee has not refused promotion earlier.
It is verified that both the employees has same channel
of promotion and were in identical scale.
Para 1313 of Estt. Code Pt. II shall be taken into

consideration while dealing with the proposal.
Latest instructions issued by Railway Board in this

regard under VIth PC recommendations may also be
referred to.
2.4.3) PROPOSAL CASES OF MINIMUM BENEFIT OF PAY

FIXATION AND OTHER ARRREAR CLAIMS.

Railway Board on recommendation of IV PC has issued order

vide their letter No. PC-IV /86. /IMP/36 Dtd 21-06-88 for
grant of minimum benefit of Rs.25 at the time of fixation of
pay on promotion and it was subsequently enhance to Rs.
221
100/-after implementation of VIth pay commission vide Bds

letter No. FE-II/99/FR/1/1 Dtd. 27-09-99. Proposals cases for
other arrear claims pertaining to a period prior to 3 years
of various nature such as arrears of family planning, HRA,
Non payment of increment due to over sight, Transportation
allowance arrears, CCA etc. are also dealt in the section.
Each claim is examined for reasons of non-payment of dues
to the employee. The limit up to which arrears claims can be
admitted is specified in chapter 10 of IREM VOL.I amended
vide advance correction slip of 1 of 2003.
Time Limit- Within 20 days.
3)
RECONSTRUCTION OF SERVICE RECORD:
Service records when misplaced are to be reconstructed. The

proposals for reconstruction should accompany the following
documents:-
a)
b)
c)
d)
e)
Personal file of the employee maintained by the

Personnel department.
Document supporting date of birth.
Copy of the Appointment order.
Date of promotion to be supported by order copy.

Leave Account in original.
4)
The yearly increments are to be checked with the leave

account, penalties if any affecting increment etc. For this
purpose JA grade committee constituting three officers from
Personnel, Accounts and of department concerned is required
to scrutiny the records and sign the recasted Service Record.
Scrutiny in Accounts Office is done with regard to: -
a)
SPECIAL PAYSHEETS/PAY ORDERS
b)
222
Whether the competent authority has sanctioned the

claim.
Whether the claim is supported by due / drawn

statements, arrears statements etc. which has already
c)
e)
d)
been checked by this office at the time of concurring

the proposal.
Whether the competent authority has signed the pay
sheet.
Whether accounts concurrence has been obtained

for arrears /claims over one year old and sanction
of competent authority is obtained accordingly. If
required Rly.Board/Headquarters approval has been
obtained as per nature of claims.
The name of the employee, designation and amount
of pay sheet/pay order tallies with the amount
concurred by this office.
[1413 A1]
5)
CHECKS ON PAY BILLS
Pay Bills showing the Pay and Allowances for Group A, B, C

and Group D employees are received in the Accounts Office
to be checked and passed for payment. The pay bills have to
be received according to a schedule prepared by SR.DPO and
SR.DFM so as to enable accounts office to conduct thorough
checks. Bill drawing units should be advised for prompt
submission of salary bills to Accounts Office.
A list generated on computer showing the details should

be maintained and filed, since CO7 preparation has also
been computerized. (For details the Manual of AFRES on
Establishment Section may be referred to).
However, in the following cases, separate bills can be admitted
irrespective of the date fixed for the submission of the Pay
Bill of the unit or section to which the employee is attached.
Time Limit - Within 3 Days.
6)
INTERNAL CHECK - GAZETTED OFFICERS
Apart from the above-mentioned checks, the following checks

shall be exercised for internal check of pay bill of Gazetted
staff. Various records maintained in the Accounts office for
this purpose are as follows (as per Para 1305 A1): 223
i).
Salary Audit ledger (FORM NO. A 1305)
iv).
Leave accounts of Gazetted staff
ii).
iii).
v).
vi).
vii).
Income Tax recoveries register
Issue of Pay Slips (FORM NO. A 1311)

Last Pay Certificate.
Maintenance of service cards. (PARA 1318 A1)
Cadre check and cadre register (PARA 1319 TO 1323

A1)
NOTE: - In the case of Gazetted officers, the ultimate responsibility for

the internal check of their bills rest with the Gazetted section
of the FA & CAOs office and unit Accounts Officers, and they
shall maintain all the records necessary for this purpose.
7)
CADRE REGISTER AND CADRE CHECK
The main object of maintaining cadre register is to ensure

that the number of posts sanctioned for each grade in a
department shall in no case be exceeded without the sanctions
of competent authority.
a)
Separate folios/portion thereof should be set apart

for each category in a department.
c)
The increase/decrease in the cadre strength should be

indicated in the remarks column. The total number
of sanctions received in the section should be posted
correctly. At the end of every month, the entries
made should be checked from the salary bills for the
month. Changes made during the month, and in case
two employees draw pay against one post whenever
it is permissible should be recorded clearly. Similarly
leave reserve posts if any should also be indicated.
Departmental summary should be prepared as a
b)
224
The number of sanctioned post (both permanent

and temporary) for the different categories of the
employees should be entered in the top of the folio.
The temporary sanction should be shown separately.
measure of test check to ensure that there is no excess

or irregular operation. The discrepancies noticed, if
any, should be put up to the Accounts officer and the
matter should be taken up with personnel branch for
immediate action.
-[1320 -1323 A1]
8)
INCOME TAX
Accounts office is responsible for correct recovery of income

tax and for transfer timely of the recovered amount to the
IT Department. On basis of estimated income for the year,
Bill drawing units should recover approximate amount
every month from the salaries of the employees. For this
purpose, the Bill drawing officer should send a statement
to the Accounts Office every year in advance, showing the
particulars of employees, alongwith the detail estimated
income and savings under various permissible categories.
This should be verified with reference to the pay bill of the
officer concerned.As soon as the Accounts for the financial
year are closed, Form No.16 prepared by Personal Branch is
required to be sent to Accounts for verification. The same
has to be returned after verification for disbursement to the
officers for filling the Income Tax return.
-[1232 1233 A1]
9)
RECOVERY OF WATER CHARGES
Bill drawing officers shall recover water charges at the

prescribed rates from all the employees, who are in
occupation of Railway Quarters. Establishment Section has
to ensure while admitting the salary bills of employees that
the water charges have been recovered correctly from all the
employees who are in occupation of Railway Quarters. Chief
Engineer will advice the rate at which the water charges are
to be recovered.
225
10)
INCREMENT STATEMENT
a)
b)
11)
SUPPLEMENTARY BILL
Drawn and due statements will be prepared and sent to the

Accounts Office whenever there is need for supplementary
claims. Relevant office orders will be verified to ensure that
the claim preferred through supplementary bill is genuine.
At the time of checking the drawn and due statements,
Memorandum of differences and Absentee statements of the
regular bills for the months to which the supplementary claim
relates should be verified to see that it has not been passed for
payment provisionally. Regular bills for the months affected
should also be verified. A copy of the certified Drawn and
Due statement should be sent to the bill preparing unit who
will forward the supplementary bill, for the amounts shown
in the statement, to Accounts Office. The Bill will be passed
for payment duly making a cross reference in the certified
Drawn and Due statement.
In the cases of Gazetted officers, the increment

statement
is sent to Accounts Office by bill
preparing authority for certification and inclusion
in salary bills. A copy of which is enclosed with the
salary bills.
The increment statement provides for a column
wherein, all periods which do not count for increment
i.e., periods of suspension, leave without pay, leave
not counted for increment during officiating tenure
etc. should be indicated.
-[1405 -1413 A1]
Following checks are to be ensured before passing these

bills: -
a)
b)
226
c)
Whether competent authority has signed the pay

sheet. i.e. Sr.DPO & APO.
Whether budgeting has been done for the claims.
Whether scale check has been done.
d)
e)
f)
h)
12)
SCALE CHECK REGISTER
All sanctions in respect of non-Gazetted establishment as

received should be entered in scale check register in the
prescribed form no. A1407 with separate folios for each class
or grade of staff and entries be attested by the S.O. of the
section. The pay bill of each unit shall contain a summary
of the sanctioned strength and the actual strength of the
unit. The actual strength shown in summary should be
checked up with the actuals charged in the bill at the time
of passing it. Entries from the summary shall be posted in
the scale check register for the month concerned. The total
strength of each category in the division for the month will be
compared with book of sanction available for each category
of staff of every department. Instances of excesses over
the sanctioned strength, if any should be taken up with the
executive authorities concerned. Book of sanction should be
reconciled with Personnel Branch every year and certified
g)
i)
Whether pay sheet is accompanied by supporting

documents like Memorandum of differences, Absentee
statements, Recovery statements, etc
Whether Mileage, over time, Night duty allowance,

and National holiday allowance claimed in proper
statements sanctioned by the competent authority
support the paysheets.
Whether D.A., HRA, CCA etc. claimed in the pay sheets

properly worked out as per the extant rules.
Whether miscellaneous payments like T.A., Washing

Allowances, the eligible staff claims Nursing
Allowances.
Whether all pay sheets bear necessary certificate as
mentioned in establishment code.
If any correction is seen, it is attested/signed by

competent authority and relevant authority letter is
produced with the pay sheet.
227
Book of sanctions should be maintained to verify the scale

check.
-[1407A1]
13)
LAST PAY CERTIFICATE
When a Railway servant is transferred from one accounting

unit to another a Last Pay Certificate (LPC) showing the pay
and allowances drawn by him and the date up to which these
have been drawn will be prepared by the bill preparing officer
in a prescribed form as given in Annexure V of Accounts Code
Part - I and sent to the office to which the Railway servant
is transferred, duly counter signed by Accounts officer.
The different deductions made against him and the sums
outstanding against him with particulars thereof will also be
shown in the LPC. The PF account number should invariably
be indicated in the LPC. The LPC is necessary document for
preparation of monthly salary for the office to which the
Railway servant is transferred.
-[1212 A1]
13.1) REGISTER OF LAST PAY CERTIFICATES(INWARD

AND OUTWARD)
a)
b)
228
Separate register containing the particulars

of L.P.C. issued and received should be
maintained in the Establishment section of
accounts office. As the LPCs constitute a very
vital link for the transfer of suspense balances,
Provident Fund balances etc., it is necessary
to maintain these registers properly and
updated.
The correctness of LPC should be checked

up expeditiously and the same should be
forwarded to the accounts officer concerned.
This register should be put up to the Accounts
Officer in the first week of every month for his
information.
14)
TRAVELLING ALLOWANCE
a)
b)
c)
d)
Traveling allowance is an allowance granted to meet

expenditure of a particular type and should be so
regulated that it is not on the whole a source of profit
to the recipient, and that utmost economy should be
observed in the incidence of expenditure on account
of TA/DA.
Claims for Traveling Allowances for Non-Gazetted

and Gazetted staffs are included in the salary bills
after the T.A. statements are certified in the Internal
Checking section of Accounts Office.
Traveling Allowances statements submitted to

Accounts Office should be accompanied by T.A.
Journals countersigned by the duly appointed
controlling officer personally except in respect of the
staff whose pay does not exceed Grade Pay Rs.4200/-(
revised) in the VI- P.C.
The Bill drawing officer should furnish the following

certificate in the Traveling Allowance Statement
for employees drawing pay Rs.5000/-(pre revised)
that The claim for Travelling Allowance has been
checked with the relevant rules, Travelling Allowance
journals and other records and found correct. The
claims in such cases are not susceptible for any
check in the Accounts Office except in regard to the
rate of Travelling Allowance admissible (verified
with reference to employees Grade pay) and the
arithmetical accuracy to the claim. A test check of
the original Travelling allowance journals kept in
the departmental office is made during periodical
inspections and any irregularities noticed in the
preparation of claims for Travelling Allowance is to
be taken up with the departmental officer concerned.
- [1213 to1214 A1]
229
14.1) Checks on TA BILLS:
a)
b)
c)
d)
e)
230
While checking Traveling Allowance bills

accompanied by journals it should be seen
that the competent controlling officer has in
every case countersigned journals.
The pay, pay band and grade pay shown in

the TA Bills should be test checked with the
pay bills, to ensure that the TA claimed is
according to the grade pay and no higher rate
of TA is allowed.
Object of the journey performed in each
case should be mentioned briefly and
precisely. It should be checked to see that the
journey is performed in the interest of the
administration.
The timings of arrival at and departure from

head quarters of trains shown in the journal
should be checked with the Railway Timetable
in force. If the T.A. claimed is at higher rate
due to late arrival of Trains, the same has
to be checked with reference to late arrival
certificates issued by the Station Staff.
In the case of staffs who are regularly on

tour throughout the month, as for example
Traffic Inspectors, Commercial Inspectors
etc, the continuity of the journeys should be
checked by comparing the opening entries
of the journals under check with the closing
entries of the journal for the preceding month
terminated by a halt at a Station away from
headquarters. It should be seen that the DA/
TA is not claimed continuously for more than
a month in violation of the payment of wages
act. It should also be seen that no TA is claimed
at the same station for more than 180 days
continuously.
f)
g)
h)
i)
When a Railway servant is entitled to draw

actual expenses, they should in the absence
of the orders to the contrary, be set forth in
detail. In the case of claims for road mileage,
the rates of daily and mileage allowances
should be checked with the rates laid down in
appropriate rules and submission of the bus
tickets should be ensured.
The officer of Junior Administrative Grade
should authorize journeys, beyond the home
line.
It is to be ensured with due verification of

the records that Travelling Allowance has not
been claimed for the periods the employee
was on leave of any kind.
The Travelling Allowance/ daily Allowance

claims through Travelling Allowance journals
are to be prepared on the basis of journeys
performed by the Railway employees in their
respective wage periods and not on calendar
month basis. If an employee has earned
Travelling allowance/ daily Allowance for
a continuous period extending beyond the
close of the wage period, the portion of the
Travelling Allowance claims following within
that wage period alone should be claimed in the
Travelling Allowance journals for that wage
period. The balance of Travelling Allowance
claims should be claimed in the Travelling
Allowance journals for the subsequent wage
period to which they relate. If the journey
performed by the employee terminates at
HQrs the first day of the next wage period, the
T.A. for that day can be included in the same
T.A. journal.
231
14.2) TRAVELLING ALLOWANCE RULES
i)
Daily allowance
iv)
Conveyance Allowance
Following are the different kinds of allowances, which like T.A.

are also controllable heads of accounts i.e. the expenditure
can be controlled under these heads:
ii)
iii)
v)
Mileage Allowance
Consolidated Travelling Allowance

Actual cost of Travelling.
14.3) Daily Allowance on Tour Under VIth

Commission:
Pay
In super session of Rule 1611 IREC Vol II (2005 Edn.) and

Boards Letter no. F(E) I/98/AL-28/9 Dated 24.4.98 the
grouping of grade pay ranges and the rates of daily allowance
are revised as follows w.e.f. 01-9-08 subject to the existing
conditions:Grade pay
Daily Allowance
(per day)
Officers drawing grade pay of Rs. 10000 and

above And those in pay scales of HAG + and above
Rs.520
Officers drawing grade pay of Rs. 4200 to 4800/-
Rs.340
Officers drawing grade pay of Rs. 7600 to 8900/Officers drawing grade pay of Rs. 5400 to 6600/Officers drawing grade pay of Rs. 4200/-
Rs.460
Rs.400
Rs.210
Note: The TA/DA rates mentioned in the Para on mileage allowance

for road journeys and daily allowances on tour shall be
increased by 25 % whenever Dearness Allowance payable on
the revised pay structure goes up by 50 %.

Daily Allowance to an employee will be admissible as under:-
(A)
232
(B)
Less than 6 hours 30% of daily allowance.
More than 6 hours but does not exceed 12 hours
(C)
D.)
70% of daily allowance. Full Daily allowance will be

admissible for each completed day or more than 12
hours.
If a railway servant under takes more than one

journey on any calendar day, he can draw Daily
allowance separately for each journey beyond a
radius of 8 kilometers but the total Daily Allowance
for such journeys on any calendar day shall however
be subject to a maximum of the full Daily Allowance
admissible for each day of absence from midnight to
midnight.
When a train arrives late less than 15 minutes the time

of arrival of the train will be taken as time recorded
in the Time Table. If the train arrives late more than
15 minutes the certificate of Station Manager will be
required.
Note:I Engineering subordinates and staff of signal and TeleCommunication and Electrical Departments when travelling
by Trolley within their jurisdiction will be eligible for
Travelling Allowance if the actual distance travelled is more
than 8 kms, from the Head Quarters. The actual distance
along the permanent way from their Head quarters to their
place of tour should be taken into account for this purpose
and not the distance from the Railway Station to the Railway
station.

14.4) CONVEYANCE ALLOWANCES:
In partial modification of rule 1607 (5) IREC-VOL II (2005

Edition) the grade pay ranges for travel by public bus/ Auto
Rickshaw /Scooter /Motor Cycle /Taxi /Own car is revised as
indicated below:-
(Authority: Rly Bds Letter NO. F (E)1/98/AL-28/15 DTD. 0112-2008 )
233

Grade Pay
(1)
Entitlement
(2)
(i) Officer drawing grade pay of Rs.10000

and above and those in pay scale of HAG
+ and above
Actual fare by any type of public

bus including air-condition
bus OR At prescribed rates of
AC taxi when the journey is
actually performed by AC taxi
OR At prescribed rates for auto
rickshaws for journeys by auto
rickshaws, own scooter , motor
cycle . moped etc.
(ii) Officer drawing grade pay of Rs.5400,

Rs. 6600 ,Rs.7600, Rs. 8700 and Rs. 8900
(iii) Officers drawing grade pay of Rs.
4600, Rs.4800
(iv) Officers drawing grade pay of Rs.
2400 and above but less than Rs, 4200
(v) Officers drawing grade pay below Rs.

2400
Same as at (i) above with the

exception that journeys by AC
taxi will not be permissible
Same as at (ii) above
Actual fare by any type of public

bus other than air conditioned
bus OR At prescribed rates for
auto rickshaw for journeys by
auto rickshaw , own scooter /
motor cycle/ moped etc.
Actual fare by ordinary public

bus only OR At prescribed rates
for auto rickshaw for journeys
by auto rickshaw , own scooter
/motor cycle/ moped etc.
Mileage Allowance for road journeys shall be regulated at the

following rates in places where no specific rates have been
prescribed either by the Director of the Transport of the
concerned state or of the neighbouring states.
For journeys performed in own car /taxi
For journeys performed by Auto rickshaw,

Own scooter etc.
234
Rs. 16 per Km.

Rs. 8 per Km.
The rate of mileage allowance for journeys on bicycle and foot

on tour and transfer is revised from 60 paisa to Rs. 1.20 per
km.
14.5) TRANSPORTATION ALLOWANCE
Consequent upon the decision taken the Govt. on

recommendations of the Sixth PC regarding Transportation
Allowance vide Ministry of Finance the Railway employees
shall be entitled to Transportation Allowance at the following
rates:-
Employees Grade Pay of
Grade pay of Rs.5400 & above
(i) Grade pay of Rs.4200, Rs.4600

and Rs.4800
(ii) Those drawing grade pay below
Rs.4200 but drawing pay in the pay
band equal to Rs.7440 and above
Grade pay below 4200 and pay in
the pay band below Rs. 7440
Rate of Transport Allowance

per month
In 13 cities* classified as A- 1/A

earlier
Other
Places
Rs.3200+DA
thereon
Rs.1600+DA
thereon
Rs.600 +DA
thereon
Rs.400+DA
thereon
Rs.1600 +DA
thereon
Rs.800+DA
thereon
*Hyderabad (UA),Delhi(UA), Banglore (UA), Greater Mumbai(UA), Chennai

(UA),Kolkatta(UA), Ahemdabad(UA), Surat(UA), Nagpur (UA),Pune(UA), Jaipur(UA),
Lucknow(UA) and Kanpur(UA).
(Authority:- Railway Bd Letter NO. PC-V/2008/A/TA/2 DTD 12-092008)

14.6) COMPOSITE TRANSFER GRANT ON TRANSFER
i)
In the case of transfer involving a change of station

located at a distance of more than 20 km from each
other the composite transfer grant shall be computed
as below:235

Officers in the pay
scale of HAG+ and
above
One months basic pay as drawn in the pay scale
All other officers
Equal to one months pay is drawn in the

Prescribed pay band + the applicable grade pay
ii)
At present only one transfer grant is permitted if the transfer

of husband and wife takes place within six months of each
other from the same place to the same place w.e.f. the date of
implementation of these orders. In cases if the transfer takes
place within six months but after 60 days of the transfer of
spouse 50 % of the transfer grant on transfer shall be allowed
to the spouse transferred later. No transfer grant shall be
admissible to the spouse transferred later in case both the
transfer orders within 60 days. The existing provisions shall
continue to be precluding transfer grant in case of transfer
at own request or transfer other than in public interest shall
continue to apply unchanged in their case.
(Authority: (Railway Boards letter No. F (E) I /2008/AL-28/15 date

01-12-2008.)
15)
FOREIGN SERVICE CONTRIBUTION
Foreign Service means service in which a railway servant

receives his substantive pay with the sanction of Government
A)
From a source other than the general revenue, or
D)
If the Foreign Service is in India, contributions must

be paid on account of the cost of leave salary also.
B)
C)
E)
236
From a company working as state Railway.
While a Railway servant is in Foreign Service,

contribution towards the cost of his Pension must be
paid to general revenues on his behalf.
Contributions, due under clause (a) and (b) above,

shall be paid by the concerned Railway servant
himself, unless the foreign employer consents to pay
them or otherwise. They shall not be payable during
leave taken while in Foreign Service.
F)
When a Railway servant is transferred to a foreign service,

contribution towards the cost of his pension or the cost of
Government contribution payable to his credit in a Provident
Fund, as the case may be, and the cost of leave salary are to
be paid by the Foreign employer to the general revenue on his
behalf and in the case of the foreign employer does not pay
such contribution, the Railway servant himself shall pay the
same.
Contributions on account of leave salary must be paid

only in the case of transfer is in India. But in special
circumstances Foreign Services out of India also the
foreign employer can pay the contributions towards
leave salary.
Leave salary and pension contributions should be paid

separately. Contributions may be paid annually within 15
days from the end of each financial year or within 15 days of
the end of Foreign Service in case of Foreign Service completes
before the end of financial year. But contributions in respect
of SRPF (contributory) will continue to be paid monthly.
15.1) CALCULATION OF FOREIGN SERVICE
A)
The rates of pension contribution have been

designed to secure to the Railway employee the
pension that he would have earned by service under
Govt., if he had not been transferred to Foreign
Service.
- [IREM VOL II PARA 2006 & 2023]
B)
The rate of contribution for leave salary will be

designed to secure the railway employee leave salary
on the scale and under the conditions applicable to
him. In calculating the rate of leave salary admissible
the pay drawn in Foreign Service less, in the case of
Railway employees paying their own contributions
such part of pay as may be paid as contribution, will
count as pay for the purpose of Rule 103(35) (FR
9(2)).
237
I)
Leave Salary Contribution:

The rates of leave salary contribution will be @ 11%
of pay of the employee drawn in Foreign service.
[IREM VOL II PARA 2007]
II)
15.2) SIMPLIFICATION OF ADJUSTMENTS ON ACCOUNT

OF ALLOCATION OF LEAVE SALARY AND PENSION
BETWEEN CENTRAL AND STATE GOVERNMENTS
Pension contribution:
Contribution for pensioner benefits will be on the

percentage basis of the maximum monthly pay of the
post in officiating/substantive grade according to
the length of service of the employee at the time of
proceeding on Foreign Service.
In pursuant to the recommendations of the committee
appointed in connection with the above subject, it has
been decided in consultation with the state Govt. to
dispense with the system of allocation of leave salary
and pension between Central and State Governments
as specified below:
(a)
Leave Salary:
The liability for leave salary will be borne in

full by the Department from which the Govt.
Servant proceeds on leave, whether it be
parent department or borrowing department
with whom he is on deputation.
(b) Pension:

The liability for pension including gratuity

will be borne in full by the Central/State Govt.
department to which the Govt. employee
permanently belongs to at the time of
retirement.
No recovery of proportionate
pension will be made from Central/State
Govt. under whom he had served.
(Railway Board Lr. No. F (E)II/87/IN3/1 Dt. 151287)

238
15.3) PROCEDURE FOR PAYMENT OF CONTRIBUTION

A copy of the orders sanctioning a railway servants transfer
to foreign service must always be communicated to the
Accounts Officer by the authority by whom the transfer is
sanctioned. The railway servant himself should, without
delay, communicate a copy to the Accounts Officer and take
his instructions as to the officer to whom he is to account
for the contribution; report to the latter officer the time and
date of all transfers of charge to which he is a party when
proceeding on, while in and on return from, foreign service
and furnish from time to time particulars regarding his pay
in foreign service, leave taken by him, his postal address
and any other information which that Accounts Officer may
require.
- [IREM VOL II PARA 2009]
15.4) INTEREST OR OVERDUE CONTRIBUTIONS
Contribution for leave salary or pension due in respect of

a railway servant on foreign service may be paid annually
within 15 days from the end of each financial year or at
the end of the foreign service, if the deputation on foreign
service expires before the end of a financial year, and if the
payment is not made within the said period, interest must be
paid to Government on the unpaid contribution, unless it is
specifically remitted by the President at the rate of two paise
a day per Rs.100/- from the date of expiry of the period of
15 days up to the date on which the contribution is finally
paid. The Railway servant or the foreign employer shall pay
the interest according as the former or the latter pays the
contribution. The leave salary and pension contributions
should be paid separately as they are creditable to different
heads of accounts.
- [IREM VOL II PARA 2012]
Note: No dues recoverable from Govt. on any account should be set

apart against these contributions.
239
15.5) TRAVELLING ALLOWANCE
a)
b)
15.6) WITHHOLDING OF CONTRIBUTIONS
A railway servant in Foreign Service may not elect to

withhold contributions and to forfeit the right to count as
duty in railway service the time spent in foreign employer.
The contribution paid on his behalf maintains his claim to
pension or to pension and leave salary as the case may be,
in accordance with the rules of the service of which he is a
member. Neither he nor the foreign employer has any right of
property in contribution paid and no claim for refund can be
entertained.
The travelling allowance of a Railway servant both in

respect of the journey on transfer to Foreign Service
and the journey on reversion there from to railway
service will be borne by the foreign employer.
Promotions
Government servants deputed on Foreign Service are

entitled to get pro- form a promotion while on Foreign
Service and such promotion shall be regulated in the
same manner in the principle of Next below Rule.
The increased pay due to promotion should be taken
into account for FSC.
15.7) PAYMENT BY FOREIGN EMPLOYER OF PENSION

OR GRATUITY
A Railway servant transferred to foreign service may not,

without the sanction of the President, accept a pension or
gratuity from his foreign employer in respect of such service.
15.8) LEAVE DURING FOREIGN SERVICE IN INDIA
A railway servant in foreign service in India may not be

granted leave otherwise than in accordance with the rules
applicable to the service of which he is a member, and may
not take leave or receive leave salary from Govt. unless he
actually quits duty and goes on leave.
240
15.9) LEAVE DURING FOREIGN SERVICE OUT OF INDIA
A.
His employer on such conditions may grant a Railway servant

in Foreign Service out of India leave as the employer may
determine. In any individual case, the authority sanctioning
the transfer may determine before hand, in consultation
with the employer, the conditions on which the employer will
grant leave. The employer will pay the leave salary in respect
of leave granted by the employer and leave will not be debited
against the railway servants leave account.
In special circumstances, the authority sanctioning
a transfer to foreign service out of India may make
an arrangement with the foreign employer, under
which leave may be granted to the Railway servant
in accordance with the rules applicable to him as a
railway servant, if the foreign employer pay to Central
Government leave contribution at the rate prescribed
under Rule 2007 (FR 116).
- [IREM VOL II PARA 2016 to17]
15.10) RECOVERY OF FOREIGN SERVICE CONTRIBUTION
Register of Railway servants in Foreign Service and whose

contributions are adjustable in the books of the Railway
should be maintained in Establishment Section to enable a
check being exercised over the recovery of the contribution.
This Register should be posted after the sanction to the
transfer is scrutinized and the Accounts Officer should attest
the entries. The register should be reviewed and watched for
the realisation of the FSC periodically. All orders received
regarding a Railway servant on foreign service and orders
issued by the Accounts office for recovery of interest or if
contributions in arrears and the cause of the contribution
ceasing to be realised owing either to transfer, death,
dismissal or any cause should be recorded in this Register.
Records to be maintained in form No.A1221-Code for the
Accounts department 1997 (Second Print).
241
15.11) DELAY IN RECOVERY OF FSC CHARGES
The rates per men sum at which Foreign Service contributions

are payable shall be included in the terms and conditions of
transfer. The foreign employer or the Railway servant should
arrange to pay the contribution (FSC) within 15 days from
the end of month in which the Railway servant has drawn the
pay on which it is based. This clause should be incorporated
in the terms of the Transfer. On relief of a Railway servant
to Foreign Service, a copy of the relief office order together
with the terms of the transfer should be forwarded to the
Accounts Office.
In several cases, sanctions containing the terms and

conditions of transfer on Foreign Service are being issued
very late with the result that calculation and intimation of
the rates of Foreign Service contributions are delayed and
penal interest become payable. With a view to facilitating
the recovery of Foreign Service contributions in time and
there by avoiding payment of penal interest etc. it should be
ensured that in case of transfer of Railway servant to Foreign
Service all the terms and conditions of his transfer are settled
well in advance in consultation with foreign employer, the
Accounts Officer and Railway employee concerned before the
employee is released to take up the foreign service.
242
The Accounts office should verify the correctness of the

rate of Foreign Service and make necessary entry in the FSC
Register. The details of Foreign Service should be entered
in the service record of the Railway servant. Any alteration
in rate of FSC due to change in the rate of pay in the parent
Department or Foreign Service should be advised by the
Executive to the Railway servant, foreign employer and to the
Accounts office. Particulars of leave availed by the Railway
servant while in Foreign Service shall be immediately advised
to the Accounts officer. The Accounts office shall make
necessary entries and adjustment of leave salary in the Books
of the Railway. The Accounts office should watch the receipt
of the Foreign Service contribution and on receipt of the same
shall make entries and adjust the same in the Books of the
Railways. The details should be recorded in the Register kept
for this purpose. Delay in receipt of FSC should be promptly
brought to the notice of the Executive and Foreign employer
and Railway servant. Interest on outstanding Foreign Service
contributions should be claimed as per terms.
A complete
list of staff who were on Foreign service should be furnished
to Accounts Office by personnel Department to enable the
Accounts to watch and verify whether the FSC charges are
realised correctly.
16)
PROCEDURE FOR TEST-CHECK:

- [Para 803 A1]
16.1) RECORDING OF RESULTS OF TEST CHECK :

a manuscript register in the form given below:-
SR
NO.
Item of
w o r k
t e s t
checked
Extent
of Test
check
prescribed
Particulars
of
vouchers
elected
for
test
check
Name of the SO /
SSO(A)who
had
test Checked the
item
Result
of Test
check
Whether
the
discrepancy
in col.6 has
been pointed out by
the supervisory staff
7
243



test check.
16.2) TEST CHECK OF REGISTERS:

should be put up for inspection by Officers has been prescribed
in Appendix VIII of the State Railway Code for the Accounts
Departments-Part-I.
16.3) PERIODICITY OF SUBMISSION OF TEST CHECK

REGISTER TO OFFICERS:
244

and orders, where necessary, by the Branch Officers. A brief
of important test checks shall be put up to FA&CAO through
MPR.
Extent of Test Checks required for different type of works.Description

the Work
Extent of check by
Gazetted Officer.
Extent of check by SO(A)/

SSO (A)
Foreign
Service
Contributions
register
Monthly review
5 items to be checked
completely every month,
and monthly review.
Pay sheets
(i) Salary Bills of one

G.O. and one nonGazetted staff per
month.
Payment
W.C.Act
of
under
Supplementary
Bills.
Scale
Register
check
Internal check of
TA Bills
Leave application
of Gazetted Officer
Journal Voucher
Last Pay Certificate
Service Cards of
Gazetted Officers
Posting in S.A.R
1 case per month
4 cases per month
Supplementary bills
of 2 non-Gazetted
staff per month.
10 Non-Gazetted staff per

month.
TA Bills of 2 Gazetted
and TA Bills of 4 nonGazetted staff
TA Bills of 8 Gazetted and 8

non-Gazetted staff
Entries in respect of
one salary bill once in
2 months.
One leave application
every
alternative
month
One JV every month
One LPC every month
Few entries on 20%

of cards at the end
each 5 year period
Two cases per month
Entries in respect of two

salary bills per month
2 leave applications per

month
4 JVs every month.
2 LPCs every month
2 Service Cards per month

Six cases per month
17)
STAFF BENEFIT FUND (SBF):
SBF is established solely for the benefit and welfare of the

non gazetted employees t o help them for certain specific
purpose. This fund is primarily intended to relieve the
245
railway employees from the distress caused to them due to

certain economic , educational and health problems . This
fund is managed by a committee at the headquarter of the
railways and consists of:-
CHAIRMAN
OFFICIAL MEMBER
SECERATERY
-Chief Personal Officer
-DY. GM & Chief Medical Officer

-Welfare Officer
MEMBERS
-Six members elected from
recognised unions.
-Four members elected by the

Central staff council or the

G.M. (where Central staff

council is not established)
Similarly, Regional sub- committees are formed in the

division and workshop to administer the fund.
(I)
Resources:- The SBF is financed from:-
(1)
Receipts from forfeited PF bonuses of non

gazetted employees .
(3)
Contribution from Railway revenue @ Rs.20

per year a per capita basis i.e. Rs. 20/- per
head of non gazetted employees on strength
preceding 31st March.
(2)
(4)
All other receipts which used to be credited to

the fund previously.
Adhoc grant which is being given to each of

the Railway by Railway Board from time to
time.
The distribution of the SBF grant is as under:-
(II)
General activities:-
(a)
Educational:- Assistance for the purpose
of higher studies in engineering , scientific,
medical, diploma and management courses ,
in the shape of scholarship.
246
(b)
(c)
(d)
Recreation other than sports
Inter Railway cultural competition.
Relief of distress, sickness etc.:- Relief to

deaf dumb and blind children of Railway
employees.
(e)
Miscellaneous.

(III)
Sports activities
(IV)
Scout activities
(V)
Recreation facilities to officers and supervisory

staff.
(VI) Indigenous system

Homeopathy .
of
medicine
including
(Authority: Rly Bds letter no. E(W)97/FU-1/4 Dated 13-10-99.)

18)

A consolidated list of employees/ their wards approved by

sub committee is forwarded to zonal committee and after
approval getting from zonal committee the same is circulated
to the divisions and on the basis of approve list the depot/
personal branch will prepare special pay sheets / pay orders
and send it to Accounts office for passing. Immediate after
receipt of the same in the Accounts office after scrutiny
the same is passed and co7 is prepared by charging the
expenditure to the Headquarter and transfer the debit
through transfer certificate.
CHILDREN EDUCATION ASSISTANCE:-
Consequent upon the Govt. on recommendations made by VI

PC and in suppression of all earlier orders on the subject of
children education allowance and reimbursement of tuition
fees , the following instructions are revised:I.
Children Education Allowance
(a)
Children education allowance and reimbursement of

tuition fees, which where hither to payable separately
will be merged and will henceforth be known as
Children Education Allowance Scheme.
247
(b)
Under this scheme reimbursement can be availed by

Govt. servant up to a maximum of two children.
(d)
(e)
The reimbursement of children education allowance

shall have no nexus with the performance of the
child in his class. In other words, even a child fails
in a particular class the reimbursement of children
education allowance shall not be stopped.
(f)
(h)
(c)
(g)
248
Reimbursement as indicated above will be applicable

for expenditure on the education of school going
children only i.e. for children from class nursery to
twelve , including classes 11th and 12th held by Junior
colleges or schools affiliated to universities or Board
of education.
Reimbursement for the following items can be claimed

under this scheme. :Tuition fee, Admission fee, Laboratory fee , Special
charges for agriculture , Electronics , Music or any
other subjects ,are charged for practical work under
the programme of work experience , fee paid for
the use of any aid or appliance by the child , library
fees, games /sports fees, and fee for extra curricular
activities . This also includes reimbursement for the
purchase of one set of text books and note books, two
sets of uniforms and one set of school shoes. Which
can be claimed for a child, in a year.
The annual ceiling fixed for reimbursement of

education allowance is Rs. 12000/- per child.
Under this scheme reimbursement can be claimed
once every quarter. The amount that can be claimed
in a quarter could be more than three thousand and
in another quarter less than three thousand subject
to the annual ceiling of Rs.12000/- per child being
maintained.
In case both the spouses are Govt. servant , only one
of them can avail reimbursement under this scheme.
(i)
II
The above limit would be automatically raised by 25

% every time the DA on the revised pay structure
goes up by 50 %.
Hostel Subsidy :
Hostel subsidy will be reimbursed up to the maximum

limit of Rs. 3000/ per month per child subject to a
maximum of two children. However, both hostel
subsidy and children education allowance can not be
availed concurrently.
These orders shall be effected 01-09-2008.
(Authority:- Railway Board Letter no. E(W) 2008 / ED-2/4 Dated 0110- 2008 )
19)
PNM/PPM
19.1) Permanent Negotiation Machinery (PNM)- This

machinery has been set up in the Railway with a
view to maintain an effective contact with labour
and also to see to resolve disputes and differences
arises between the labour and the administration in
day to day working . The solution to various disputes
and differences is sort to be achieved by means of
negotiations for which this machinery has been
introduced.
(a)
The PNM works at three levels:-
At divisional level, where the PNM meet the local

administration once in two month and discuss
the problems of employees of the particulars
establishment. Many a problems are solved at such
meeting and better understanding between the
workers and the administration. If some problems
evades at this level, they are referred at the next
higher level. In division DRM/ADRM is the chairman of
the meeting. If any booklet regarding any PNM items
related with establishment claims of the employees is
received, immediate reply of such items is to be given
249
(b)
(c)
and the details of payment if passed by Accounts may

be given like CO7 NO. amount passed etc.
At Zonal level, where the workers representatives

meet the officers of the headquarters including
the General Manager once in three months and all
outstanding problems are discussed. The problems
which can not be settled at this level are brought
before the still higher level.
At Railway Board level , where all problems which
could not be solved satisfactory at Railways level
, are raised in the half yearly meeting between the
federation and the Railway Board.
If some differences and disagreements still remain

unsettled , these are referred to an adhoc Railway
Tribunal with a neutral Chairman and having
representatives both of the Railway Board and the
Federation.
19.2) Payment pending meeting (PPM):-
250
DPO is the chairman of PPM at division level, whereas

ADEN is the chairman at sub-division level. This
meeting is to be held on monthly basis. In such meeting
authorized representatives of union, one ADFM from
Accounts side and DPO will sit together and the
problems of employees claims which are included in
the agenda and for which one booklet is prepared and
circulated well in advance to all concern is discussed
and settled.
The items which are included for the discussion in
the PPM is discussed with the union representatives
and one SR.SO/SO from Account side will participate
in such meeting to settle down the items. Those items
which are not settled during the sub divisional PPM
are referred to divisional PPM for discussion and for
its disposal.
20)
Productivity Linked Bonus (PLB):-
AIRF AND NFIR accepts the scheme of PLB in view of their

demand for payment under the payment of bonus act 1965.
PLB for each financial year covered by this scheme shall be

paid by 31st October of the succeeding financial year. The
grant of PLB intended to provide substantial motivation
towards achieving higher productivity by way of increase the
output by the employees and improve quality of service.
The productivity shall be determined solely on the basis

of Revenue Traffic Tonne Kilometer achieved each year as
derived from the relevant audited statement of statistics of
Indian Railways. The actual performance alone shall be the
basis of productivity and the productivity linked bonus.
Railway board in consultation with the federation members

the days of PLB and the monthly ceiling limit decides and on
the basis of such orders the personal branch prepares bonus
cards for each employee and pay sheets of the bonus and the
same is received in the Accounts office wherein it is passed
and such bonus cards are kept for post check purpose. While
post checking if any over payment is detected the personal
branch is intimated for their recovery under advice to
Accounts office.
21) Maintenance of Service Records and Salary Audit

Registers for Gazetted officers.:

When a gazetted officer arrived on transfer from other

accounting unit their service records to be received as early
as possible to enable this office to maintain their Salary audit
register accordingly. For the purpose immediate after receipt
of audited LPC from transferred accounting unit the letter
is to be written to such accounting unit and matter is to be
personally chased by supervisor level. Similarly, the SRs of
the officers who have been transferred to other accounting
unit their SR after completing all details like leave details,
increment sheet etc to be transferred at the earliest to the
accounting unit where he has been transferred.
251
Time Limit: 15 days for inward and outward SRs.
In computerization environment the SAR is now computerized

and passing the regular payment of officers the hard copy is
being extracted.
22) AFRES
(PROCEDURE
TO
ESTABLISHEMENT SECTION)

BE
FOLLOWED
IN
Apart from checks mentioned in previous pages the process of

taking CO6 no. and making CO7 for passing the bills through
AFRES, involve the following modus operandi :-
i).
ii)
iii)
v)
iv)
vi)
vii)
252
Password is allotted to each bill clerk wherein he will

open AFRES with his own password.
After Selecting Internal Check menu he will open

Transaction Menu, where following options are
available:
Salary Bills Register and Posting.
Bill Return
Supplementary Bills Register and posting

Non- Salary Bills register and posting
Co7 Posting
Co7 Confirmation /cancellation

Cash Outward Transaction
As per requirements, he will select one of the options.
Reconcile the figure of Pay bill concerned and as given

in menu if all figure match then AU6 No. is selected.
For preparation of Co7, the bill-passing menu is opened

and AU6 already checked, selected for proposals of
Co7.
Co7 No. will be noted down, automatically selected by
system, on pay sheet concerned and can be printed in
Report Menu.
Bill clerk and SSO (ESTT.) check these bills and after
the checks the same will be put up to Accounts Officer
for signature.
viii) The bills should be handed over to Books Section

after confirmation of Co7, for preparation of cheques
/ Electronic Transfer.
It may be noted that in case of any irregularity it should

be traced in Audit Menu. In case of return for Executive
office Bill Return Menu is to be operated. There are few
transactions like Misc. Pay Orders, Unpaid vouchers, Court
Attachment Pay Order etc., which are not generated through
PRIME. In addition to above certain books adjustment are
required to be carried out. Such adjustments are done by
preparing ATC/ATD and RJV by selecting Cash Outward
Transaction and by entering detailed head of account to be
debited or credited with amount. At the end of the month AU6
Register for the month is printed selecting AU6 REGISTER
MENU For audit and record purpose.
Note: The detailed procedure of working on AFRES is annexed as

AFRES USER MANUAL
253
Chapter 8
BILLS RECOVERABLE
1)
BILLING:
Bills are prepared for the various facilities, provided by

Railways, such as sidings, land licensing, interest and
maintenance charges for various sidings. Every revision has
done by the executive then these office issues normal bills till
next revision. It is to be seen that the bills are prepared timely
& correctly, with reference to facility, rate, area, previous out
standings, period for which being billed.
Bills for cost of Commercial staff, C&W maintenance charges

since been prepared by concerned executives quarterly. It is
vetted by Accounts and after vetting the same is returned to
them for onward transmission.

2)

254
Bills for way leave charges not issued by Accounts since

the charges already vetted and demand notes are issued by
ENGG. Department.
License fee of Land/Plot rent:
Policy guidelines for commercial licensing of Railway land

last issue vide Bds letter no.63W2/Livi/18/87 dated 29.08.95
in super session of the earlier policy directives, have been
amended from time to time. With a view to bring all such policy
instructions under one umbrella, it has been decided to issue
a Master Circular combining all the instructions issued so far
on the subject. Considering above aspects Railway Board vide
their letter No.2005/LML/18/8 Dated 10-01-2005 has issued
instruction in this regard and Railways are required to quote
this letter for any further reference .However , amendment to
this letter is received vide letter no. 2005/LML/18/8 dtd 0806-2005 . While dealing with the issue this letter may also be
kept in mind.
Bills Recoverable
3)
For dealing with the cases of Licensing of Railway land for

(RAILTEL CORP. OF INDIA LTDD.(RCIL) BDs letter no. 02/
LML/13/12 Dtd. 10-10-06 may be kept in mind . This is also
reiterated that while dealing any land licensing proposal
latest instruction on the issue should be referred to.
Schools & Welfare Organisations and Mandirs , Masjids
and Gurudwaras:
For schools and welfare organizations, separate

instructions have been issued vide letter No.92/LM (L)/21/4
of 11/05/1992. A nominal amount, to be paid each year, has
been fixed for these organizations. For Mandirs, Masjids and
Gurudwaras, Railway Board has issued separate instructions
vide letters No.2000/LML/22/1 of 31/05/2001, wherein it
has been decided to charge a nominal fee from them, with
a provision of revision from time to time. These orders are
specific to some cases. Railway Boards letter No.84/W2/
LM/18/159 of 21/05/87), however, lays down comprehensive
guidelines about religious structures.
4)
Way-Leave Charges:
Way leave facilities / easement rights on Railway land involve

occasional or limited use of land by a party for a specified
purpose like passage etc. without conferring upon the party
any right of possession or occupation of the land and without
in any way affecting the Railways title, possession, control
and use of the land.
-PARA 1033 (ENGG CODE)
Guidelines regarding fixing of way-leave charges were

issued vide Boards letter No.97/LML/24/3 Of 27-11-01 ,
which clearly defines the modus operandi to be followed
while fixing the way leave- charges in different matter.
However regarding laying of optic fiber cable (OFC) cable ,
Railway Board vide their letter no. 2001/LML/24/20 Dated
16-08-2005 have issued detailed guide line which may be
kept in mind while dealing any such proposal. Regarding way
255
5)

6)
leave facility for under ground laying of cable tv , Bds letter

no. 20001/LML/24/20 dtd 13-11-01 will be the guiding factor
however , any correction slip etc. issued afterwards should
also be considered while dealing with the issue.
RENT OF BUILDINGS.
Buildings rented to private parties are treated equivalent to

licensing of land. Hence they are covered under Boards letter
of 29/08/95. However, policy regarding provision of Quarters
for GRP personnel has been laid down vide Boards letter
No.92/LM(B)/21/41/Policy of 12/10/93. The letter stipulates
that a rate of 3% of the market value of land is to be charged,
with revisions every 10 years.
Assisted Siding
(i)
(ii)
The words Interest and Maintenance charges

are used typically in the context of Assisted sidings
who are required to pay an interest & depreciation
charge on the capital cost as per book value borne
by Railway in the initial construction at the prevalent
rate of Dividend payable to the general revenue (7%
since 1993, as per Appendix IV of the report of
Railway Convention Committee).
In addition to interest, the party has to pay

maintenance charges at the rate of 4/2% on the cost
of portion of siding borne by Railways on the present
day cost of the siding. Maintenance charges will be
payable on the portion of siding outside Railways
premises and are subject to review every five years.
For example, if in 1996, a siding was provided at
Rs.100/-, the maintenance charge will be Rs.4.50/-.
In the year 2001, if the assessed cost of the review is
Rs.150/-, the maintenance charge will be Rs.6.75/-.
7)
Private Sidings
Instructions with regard to levy of maintenance charges

for the private sidings have been laid down vide Boards
256
Bills Recoverable
letter No.58/W1/SA/13 of 23/04/1982 which were further

modified vide Boards letter No.85/W1/SP/45 of 01/12/1986
and letter No.85/W1/SP/45 of 20/04/87.
The circular of 23/04/1982 was issued with the intention of

laying down a uniform procedure in view of representations
being received from siding owners about lack of uniformity
from one Railway to another. The process of calculation
of maintenance charges is rather tedious and not easily
intelligible. The same is explained as under:
The first step is to arrive at charges per kilometer

which would account for the following factors: -
(a)
T & P charges -
Rs.200/-
(c)
Staff cost (at scale prescribed) -

Pay+ allowances
as specified in
by Board vide
Board's letter
of 23/04/1982
(b)
Replacement of small fittings -

(d)
The staff requirement for one kilometer of siding

has also been specified by Board.
For every 10 sets of points & crossings, one

kilometer is to be added to siding length
reckoned for levy of maintenance charges.
7.1)
Payment of Inspection Charges:
Departmental charges

3% per year of
cost of new
fittings
12% of (a+b+c
above)
In the event of the portion of siding inside partys

premises being maintained by the party itself,
inspection charges are leviable. These charges are in
the nature of a fixed minimum amount for the first
ten kilometers of siding lengths, and then an amount
257
7.2)

ACRONYM
WAGES
DA+Arrs
HRA
CCA
NHP
TA
NDA
OT
Trans Allow
for every km. beyond 10kms. These charges are also

subject to five-yearly revisions. These instructions
are contained in Boards letter No.83/W1/SP/12/PT
of 22/03/1993.
Cost of Staff:
As the name suggests, these charges are levied on

actual basis for the staff deployed to sidings. The
elements, which are charged, are as under:
STANDS FOR
Basic Pay
DA + Arrears (if
any) on DA.
House
Rent
Allowance
City Compensatory
Allowance
National Holiday
Pay
T r a v e l i n g
Allowance
Night
Allowance
Over Time
Duty
Tra n s p o r t a t i o n
Allowance
Incidental Exp
Incidental Charges
Leave Salary
Leave Salary
258
REMARKS
Charged as per the grade of the
employee.
Charged as per the rate of DA fixed
by the Central Government from
time to time.
Charged as per the Grade of the
place where the staff is deployed.
Charged as per the Grade of the
place where the staff is deployed.
Charged for those employees who
work on National Holidays.
Charged as per the prevalent TA
rules and the actual movement of
the employee.
Charged for those employees who
are performing night duty.
Charged on the actual over time
worked by the employee.
Charged as per the conveyance
allowance fixed by the VIth Pay
Commission.
Charged @10% of (Pay +
Allowances) as per Railway
Boards letter No. F(E)II-83/
Misc/1 of 27/06/1984.
Charged @ 15% of (Pay +
Allowances) as per Railway
Boards letter No. F(E)II-83/
Misc/1 of 27/06/1984.
Bills Recoverable
ACRONYM
Contribution
to SRPF &
GRATU
Deduction towards House
Rent, Electricity and Water
Charges, Meter
Rent.
Deduction towards
House
Rent,
Electricity
and
Water
Charges,
Meter Rent.
REMARKS
Charged @ 1/8 of (Pay+DA) as per
Railway Boards letter No.F(E)II83/Misc/1 of 27/06/1984.
This amount is being deducted
from the bills raised on the party
if the party has provided these
facilities to the Railway Staff.
However, vide letter No.85/W1/SP/45 of 01/12/1986, Railway

Board has specified that the cost of staff, except commercial,
staff at sidings dealing with POL and other hazardous
commodities, and those exceptional cases enlisted in Boards
letter No.77/M (N)/951/36 of 13/04/1981, required by the
railways for the operation of the siding should be borne by
the Railways. This has been reiterated by Railway Boards
letter No.99/TC(FM)/26/1 of 29/09/2000.
7.2.1) Procedure for Billing:
STANDS FOR
Contribution to PF
& Gratuity
The pay bill for siding staff is first passed in the

normal course. The same is then submitted to
Personnel Branch for adding the extra components
like Incidental expenses, Leave Salary, Contribution
to SRPF etc. After addition of these elements, the bill
is sent to Accounts office for raising the bill on the
party.
7.2.2) Disputes arising in Staff Bills:
Some of the common disputes arising between

Railways and parties on staff bills are as under: -
i)
Staff is billed for as per Sanctioned
Strength whereas salaries are drawn
as per Men on Roll.
ii)
Sidings provide accommodation in
some cases to Railway Staff. The staff
posted gets transferred but fails to
259
vacate the quarters. The new staff

coming in his palace is entitled for and
claims HRA, which is paid by Railways,
and the party is also billed for the same.
The siding however is not due to pay to
the extent it has provided quarters and
hence disputes take place.
iii)
Payment of overtime is another core
issue. Since rakes arrive at odd hours,
Railway staff is due to claim overtime
beyond normal duty hours even if they
have not had to work during their normal
hours of duty. In some cases the OT
charged is more than the wages drawn.
8)
Wagon Repair/Loco Hire Charges:
This constitutes a very minor element of XBR. The bills for

these charges are raised as and when they are received from
the concerned executive. No major problems are faced in
their recovery.
9)

260
Maintenance Charges of ROBs, FOBs and Level Crossings:

No specific orders from the Board were traceable regarding
maintenance charges of ROBs and FOBs. However, as per the
standard format of agreement signed with the Government
Authorities. It is to be levied upon with the provision of
revision as and when considered necessary by the Railways.
Regarding Level Crossings, Para 1851 of the Engineering
Code states that in cases where extra establishment is
engaged in connection with the maintenance and operation
of any deposit work (e.g. a gateman engaged for operating
the gate of a level crossing constructed at the cost of another
Government Department/Private Party), the actual pay
and allowances of such establishment, together with such
additional charges as are prescribed in Para 575 of Indian
Railway Establishment Code, should be recovered. Besides,
Bills Recoverable
10)

11)
as per the standard format of agreement with the sidings,

maintenance and cost of establishment for the level crossings
within the siding limits are to be borne by the applicant.
DESPATCH:
It is to be confirmed that the bills prepared are dispatched to

the concerned party in time.
PREPARATION OF JV:
JVs to be prepared after raising of bills and receipt of

payments thereon. For adjustment of bills with Government
bodies JVs are required to be prepared after receipt of
acceptance of bills.
12)
MAINTENANCE OF SUSPENSE REGISTER:
The Suspense Head DR/BR is to be debited for the amount of

bills raised to various parties for different facilities provided,
and Credited for the amount realized.
13)

14)

15)

WATCHING / CHASING RECOVERIES:
The bills so raised are required to be reviewed for receipt of

Payment. If there is any delay/dispute by the party concerned
the same is required to be resolved through telephonically/
correspondence and if necessary by deputing the staff of XBR
section for settling the dispute.
PREPARATION OF ACKNOWLEDGEMENT:
After ensuring the amount billed has been realized i.e. DD/
Cheque etc. received from the party concern same is forwarded
to Divisional Cashier Bhopal for encashment. Copy of the
same endorsed to party concern as an acknowledgement.
ENTRIES IN CONCERNED REGISTERS:
Entries for raising of bills and amounts realized are to be made

in registers maintained for the purpose, i.e. Siding Register,
Repairs & Maintenance register etc. Party wise accounts are
261
16)

17)

18)

required to be maintained to provide information regarding

amount billed, realized, outstanding if any etc. at a glance, at
any point of time.
RECONCILATION WITH BOOKS SECTION:
The amount booked to the suspense heads is to be reconciled

with the book section EVERY MONTH.
PREPARATION OF STATEMENTS:
Preparation of Fort Nightly. Monthly, quarterly, and half-yearly

statements of suspense heads i.e. Demands Recoverable and
Bills Recoverable (not treating as Suspense heads) , sending
the same to concern executive , as well as to FA&CAO, as per
the schedule time.

- [Para 803 A1]
262

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


The observations as a result of the test check should

be clearly indicative of the appraisal by the checking
authority of the quality of performance of the clerks
whose work came up for test check.

Another important item of test check is the inspection

of different registers by the Gazetted Officers. The
intervals at which different registers maintained in
Accounts Offices should be put up for inspection by
Officers.
263
18.3) Periodicity of submission of Test- Check oregister

to Officers:
264
Every test checks register should be provided with

an inspection sheet below the front page indicating
the month of test check, date on which put up and
the date reviewed by the Officer concerned. The test
check registers of Section Officers and Senior Section
Officers should be put up to the Branch Officer on the
10th of each month indicating the test check done on
the work of clerk in the preceding month for review
Chapter 9
BOOK SECTION
1)
Procedure followed before preparation of cheques / In

lieu cheques.
The passed CO-7 printouts along with relevant vouchers are

received from various Sections for arranging of payment.
On receipt, they are entered into a register meant for the
purpose. The CO-7s are scrutinized and based on the section
code a summery is generated. Subsequent to the summery
generation, cheques are printed. The Cheques duly stamped
and signed by a competent authority, are then sent to pay
office. Before dispatching to the pay office, the cheques
particulars are recorded in a register maintained for the
purpose. The pay & cash office provides the acknowledgement
of the cheques mentioned in the register to the books section.
A soft copy is sent to the concerned bank for facilitation of
payment where ECS & EFT is chosen as mode of payment. The
sponsored bank credits the paid amount in the bank accounts
of employees in their respective Banks.
NOTE : Now in most of the accounting unit this process is carried

out on AFRES and printing of cheques is computerized. The
concern sections after signing of CO-7 by the officer, dispatch
it on AFRES by confirming the CO7 so that the data of CO7
on AFRES is passed on to Books section and physically send
the C07 and voucher to Books sections. While preparing the
summary Books section arrange the physically received
CO7 ensures the completeness of CO7 and vouchers for its
payment and selects the C07 number in AFRES to include
in cheque summary. When the requisite CO7s are selected
computerized cheque summary is generated. After generating
cheque summary cheque printing is also carried out on AFRES
by using continuous cheque stationery for various treasuries
operated in the accounting unit.
265
2)
Preparation of In-lieu Cheques:
In lieu cheques are prepared and re-issued to the parties

where cheques are either lost or received back in the books
section for effecting corrections of any nature like error in
account holders name, wrong treasury or invalid cheques.
However, where a cheques is lost or burnt or cant be produced
physically to the section, an indemnity bond is required to be
executed by the party. After getting the confirmation from
the concerned bank about the cheque being yet realized, the
in lieu cheque is issued. In all other cases, where the issued
cheques are available and can be presented to the books
section, the in lieu cheques are issued with no requirement of
execution of indemnity bond. The In-lieu Register is recorded
wherever an in-lieu of cheque is issued.
NOTE : Issue of In-lieu cheques is also carried out on AFRES by

generating the summary of such cancelled cheque and its inlieu cheque.

(2.A) Preparation of Cheque indents:
(2.B) Issue of advice to Banks for Cheques books

brought in use
(2.C) Sending of Specimen signatures
266
The indents for the following year for MICR & nonMICR Cheques are submitted to FA & CAO (Books)
every year. Quantity is arrived, taking the actual
consumption of cheques during the past few years.
The advice regarding the cheque book currently is in
use is required to be sent to Banks immediately after
using the new cheque book.
Specimen signatures of accounts officers who are
authorized to draw payment are required to be sent
to the RBI, SBI and other treasuries concerned as and
when the officials are transferred from and to the
office. Each authorized officer is allotted signature
code by HQ. As and when officer is transferred to
other unit, this code is cancelled.
Books Section
(2.D) Maintenance of Ex-chequer
3)
Remittance transaction
The transactions between the railways on the one hand and

departments of central and state government on the other
hand are known as remittance transactions. The following
heads of accounts are operated to record the remittance
transaction:
The exchequer (cash authorization by RBI through

Rly Board/HQ) is allotted for every quarter by the
HQ (FA & CAO/BOOKS) and it is intimated to all
the concerned units. Total expenditure incurred
to the date should be compared with Allotment of
funds on daily basis to avoid a situation wherein the
expenditure starts exceeding the prescribed limit of
funds. SR.DFM is intimated timely regarding status of
Ex-chequer. Besides, Cashbook figures are reconciled
with the figures appearing in the Ex-chequer register.
A day-to-day exchequer position is maintained in the
register.
a.
Reserve Bank Suspense
b.
Remittance into bank
c.
Cheques and bills
d.
PAO suspense
e.
AG suspense
f.
Remittance accounts with Defence and postal
g.
Reserve Bank Deposit
3.A
Reserve Bank Suspense:
The transactions that originate in the books of defence,

Postal department, and ministry of external affaires or in
DGS&D and get adjusted in the books of railways are settled
through reserve bank of India. The suspense head RBS is
operated to record the inward transactions intimated by
267
3.B

the departments mentioned above. All items under the RBS

should be cleared by the closing of March accounts, however
in case of any uncleared balance in the head at the end of year;
the debit balance is transferred to miscellaneous advance
revenue while credit balance is to be transferred to deposit
miscellaneous account.
Remittance into Bank and reconciliation
This account is a suspence head under major head L Suspence

& Miscellaneous and intended to record the remittances
made into banks and to watch their realization.
268
The amount deposited into banks, as adviced by chief cashier/

paymaster, are debited to Remittance into Bank through
general cashbook and credited to Revenue/Service head.
Station earnings are remitted into banks in two ways. In the
first instance, some stations may directly remit the cash into
bank while in other stations may forward the cash to cash
office through traffic cash safe and the chief cashier/pay
master deposit cash in the bank. While depositing the cash
in bank, treasury remittance notes are prepared to obtain
acknowledgment from the banks. Sometimes instruments
like cheques and DD are received in accounts office for
realization. They are sent to cash office/pay office mentioning
the head of allocation to which amount should be credited. In
reciprocation, Cash office/pay office sends one copy of Bank
acknowledgement to account office of challans, remittance on
daily/weekly/fortnightly basis as possible. On receiving the
cashbook, entries made in the book are checked in respect
of the concerned challan numbers and amount. Thereafter,
a cash JV is prepared by debiting to remittance into bank
00867009 and crediting to revenue or service head. After
finalization of cashbook, a JV and an ATD is prepared by minus
debiting to 00867011 and debiting to HQ. In the books of
HQ, which receives the ATS from divisions, workshop units,
construction units, and the statement of remittances into
bank, allocation head 00867009 is charged through a JV
Books Section
.On receipt of clearance memos from RBI and the focal point
branches in respect of cash and cheques, DD deposited into
bank, books section prepares a JV debiting remittance into
bank 00867011 and crediting to reserve bank deposit. The
balance under the head remittance into bank 00867009
represents the cash or cheque deposited into bank but
not acknowledged by them. Balances in the allocation
00867011 represent the cash or cheque deposited in bank
and acknowledged by them. The item mentioned in allocation
00867009 and allocations 00867011 are matched and in
case of any unmatched item and remained uncleared; writing
to RBI for clearance of the same.
269
From the above, it is observed that there are four sources

of receipts against remittance into bank (RIB). For all
the receipts made during the month, RIB is debited and
corresponding credit is given to final heads by concerned
units / section. For TC, RIB is debited and minus debit to unit
concerned is given.
All the MRT and MR are fed in the HQ A/C office (ACCESS),
wherein the summery of MCR is generated. Also, all the
summary for the day of cash extract is fed in excel sheet to
arrive at cash as per cash extract for month.
Challans for various sources are fed in the AFRES and the
same are reconciled with MCR and Cash extract / TC figures to
ensure that there are no missing challans. Any discrepancies
noticed are brought to the notice of cash office and is rectified.
The total figure in the cash extract, MCR and TC should

reconcile with the Debit booked under RIB during the month.
Credit portion consists of the following parts:
i.
Remittances through challans
ii.
Remittances through e-payment,
iii.
Remittances through RTGS
iv.
Challans consists of remittances made by cash
office to the bank.
v.
E-payment consists of crediting the amount
under electronic system carried out by SBI,
Jabalpur and SBBJ, Kota.
vi.
RTGS system also includes electronic
remittances carried out by Union Bank of India,
Rewa.

Entire statement of remittances made are consolidated by

the SBI, Focal Point Branch and sent to FA & CAOs office daily.
Day wise receipts of bundles from focal point branch

are feeded in the AFRES separately for challans, e270
Books Section
payment Jabalpur, e-payment Kota and RTGS UBI

Rewa.

Below is a flow chart, which explains the flow of whole

remittance system:
Day wise credits accorded by the focal point as per daily

bundle are entered manually into a register. This daily data
is reconciled manually with the monthly statement sent to FA
& CAOs office by the focal point. This monthly statement is
called Detailed Monthly Summary (DMS).
The focal point branch also sends the day wise receipt to
Reserve Bank of India for crediting into the Railway Account.
RBI to FA & CAO advises the amount so credited day wise by
RBI into the Railway Account through a statement called RBI
memo.
271
Reconciliation between RBI memo and DMS
After all the challans, e-payment data and RTGS Data are fed
in the AFRES, is ensured that the AFRES data reconciles with
the DMS sent by the focal point.
While preparing the RJV every month from RBI memo, it is

ensured that the amount so credited by RBI reconciles with
the DMS sent by focal point branch.
The reconciliation between RBI memo with DMS AND DMS

with AFRES data are done in an excel sheet. Differences, if
any between the AFRES and DMS are brought to the notice
of SBI, Focal Point, who rectifies the data through a separate
bank authority called GAD. After rectification through GAD,
RBI does the necessary rectification in the RBI Memo in the
forthcoming month. Once all the debit and credit challans are
fed, matching of individual challans is done in the AFRES. The
factors taken into consideration during the reconciliation
are:
a.
Station Code
b.
Bank Code
c.
Challan Number
d.
Amount

List of unmatched debit and credit challans extracted out of

reconciliation are matched manually.
3.C
CHEQUES & BILLS RECONCILIATION.
A statement of cheques issued is prepared with the help of

source data available in the section. The paid cheques data
is available at two levels; at the Divisional level and the HQ
level. The FA & CAO /BOOKS provides the data in the soft and
hard copy through ATC to concerned Division. This data is
matched with the paid cheques data available in the division.
A statement of mis-match items is generated to find out the
(Authority; FA& CAO/JBP LETTER NO : WCR/ACS-HQ/EFFY/

LTR-CIR./08-09 DATE 18.02.2009)
272
Books Section
reasons only for those cheques, which do not tally. After

finding out the reasons the issued/paid data is modified
suitably and matched again to see there is no item mismatching. While finding out the causes for mis-match extra
debits are either transferred to respective units or RBI is
advised to withdraw debits from the debit scroll accordingly.
The basic documents from which reconciliation is done
are:-
a)
Cash Book (CHEQUES & BILLS FIGURE)
b)
Computerized cheques summary prepared by
Cheques Section
c)
JV figures

3.D

3.E

3.F

The reconciliation is on the basis of cheques issued statement

prepared by converting the source data of cheques section.
The database of cheques section is based on cheques numbers
fed before printing. Therefore, the figures appearing under
head 00867002 of cheques and bills represents cheques
issued figure and should be equal to total of that. The
figures appearing under head 00867003 cheques and bills
represents cheques cancelled or paid cheques figure. The
differences of the allocation head 00867002 & 00867003
represent the balance figure in the head cheques & Bills.
PAO SUSPENSE:
PAO SUSPENSE head is operated to settle the transaction

with central government departments.
AG SUSPENSE:
AG SUSPENSE is operated to settle the transactions with the

state government departments.
Remittance accounts with postal and defence:
This head of account is operated to record the transactions

originated in the books of railways and finally adjustable
in the books of defence and postal department. Advance
273
3.G

schedules are sent to the account officer of these departments

showing the number, particulars and amount of each voucher
in respect of which debit is to be transferred to RBI. On receipt
of the memo of clearance necessary adjustments are made in
the final head of accounts.
Reserve Bank Deposit:
This head is operated upon to record transactions in

connection with remittance made into bank/ cheques
encashed and transaction settled with non railway
government department. The adjustments are made through
RBI. The payment to a retired railway employee is arranged by
nationalized bank on the basis of pension payment authority
issued by the railway. The debit in the respect of pension
payment is raised by the bank through RBI which is entered
into the debit side of abstract L and credit side to reserve
bank deposit. Before the closing of accounts each month the
balance under these heads is reconciled with general books
and schedule is prepared showing the transaction with RBI.
The balance under this head is closed to government at the
end of year.
4)
Transfer Transactions:
The transactions which are settled by way of book adjustment

between two separate accounting units within the same
railway or between two different railways are known as
Transfer Transactions and needs to be kept distinct from
normal transfers.
The following heads of accounts are operated to record and adjust transfer transactions.
a.
b.
274
Transfers, Railway Revenues}
Transfers, Railway Capital} for transactions involving

revenue transactions in the Capital accounts books
and vice versa
Books Section
c.
d.
e.

f.
Transfer A Divn. to transfer the transactions

originated in one Accounting unit to the other
accounting unit to which It pertains.
Transfer B Divn to transfer the transactions

Transfer C Divn to transfer the transactions

Transfers Railways to adjust the transactions
between zonal railways and Production units
A Rly

B Rly

C Rly

Transfers Railways to adjust the

transactions between zonal railways
and Production units


Transactions arising in the accounts of one accounting unit

which are adjustable in the accounts of another unit within
same railway or between two railways should be transferred to
the letter by either operating the head Transfer Divisional
or Transfer Railway depending on the case may be. A
transfer certificate is prepared and issued in form A 406
in triplicate if a foreign railway is involved or in duplicate if
the same Railway is involved. Transfer certificate against a
particular accounting unit should be serially numbered. Every
accounting unit should ensure that there should be no breaks
in serial numbers and if any break is noticed, the concerned
should call for missing transfer certificate immediately. Two
separate registers are maintained for recording outward
transactions and inward transactions. Before the closing of
cash book for the month various section prepares TC and
275
5)

handed over to books section for entering in register and

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

that the cheques favoring chief cashier for disbursing of the
bills to the parties included in the Abstracts of bills (A.1107)
popularly known as CO-7 BILLS, have correctly been
accounted in the chief cashiers cashbook. This reconciliation
is done on monthly basis and purpose of this reconciliation is
to ensure that the amount of bills passed in a month does not
exceed the exchequers provided for.
276
Books Section
6)
DEBT HEAD REPORT: form A 749
A Report on the balances under the Debt Heads and

Remittance Heads is prepared after the closing of March
accounts by various units at Divisional, Workshop and
Construction level in the form A 749.The reports are
then sent to the FA & CAO for compilation from where it is
submitted to Railway Board. This report is called the Debt
Head Report. The report contains the outstanding balances
with explanations for important variations from the previous
years balances and comments on the efficiency of the
balances at the end of the year under review.
Following Debt and Remittance Heads are reviewed in the

Debt Head Report:
i)
F Loan and Advances
ii)
I Small savings.
iii)
J Reserve Funds.
iv)
K Deposits and Advances.
v)
M Remittances.

Adjustment Accounts with Postal Department.
Adjustment Accounts with Defense Department.
vi)
PAO Suspense and AG Suspense.

In addition, the following information is also furnished

in respect of Deposit Miscellaneous:
(a)
(b)

Opening balance as on Ist April, receipts and

disbursements during the year and closing balances
on 31st March under each classified heads of Indian
Railway Deposits,
Receipts and Disbursements during the year under

Cash.
The report is based on an analysis of various balances

enumerated above.
The report, besides reviewing
outstanding balances, furnishes explanations for major
variations form the previous years balances and comments
277
7)

on the efficiency of the balances at the end of the year under

review. Certificates are furnished by the concerned in regard
that the balance shown in the report agrees with the General
books and are supported by details. A copy of the same is
given to Audit for scrutiny and acceptance of the report.
Preparation of exchequer outgo monthly statement:
For the purpose of maintaining a concurrent record of Cash

outgo the net amount of bills passed for payment as entered
in the Abstract of Bills should be posted regularly in a
manuscript register classified by Sub-head of Demand and
Suspense head (eg. PF, Unpaid, Dep. Misc., F-Loans & Adv.
Etc.). The register should be totaled monthly Demand wise
and Suspense head wise and sent to FA&CAO.
( Para 1137 A1)
8)
Preparation of Approximate and Actual Account Current

(monthly):
An Account current is simply a statement showing the receipt

and disbursement of an accounting circle, duly classified
under the prescribed heads of account.
(Para 324 A1)
9)

278
Approximate Account Current is a statement of Approximate

Receipt and disbursement and is submitted by 5th of the
following month that to which figure relate. In this Account
Current cash figure of adjustments are taken. Approximate
Account Current is prepared and sent to Railway Board
through FA&CAO and onward figures are communicated to
Finance Ministry to decide Ways & Means of Govt. for the
month.
DEPOSIT UNPAID:
When the Pay office returns bills to the Accounts office there
may be some unpaid items in them. The amounts so unpaid
will be remitted by the pay office in to the Bank accompanied
by a statement in Form A 1959 that is known as the unpaid
Books Section
10)

11)

12)

list. All items of unpaid wages shall, as a rule, be credited to

Deposit Unpaid Wages (Para 316-A- I). Items of other than
wages are credited to respective deposits such as Dep E etc.
PASSING PAY ORDERS RELATING TO UNPAID WAGES AND

MAINTENANCE OF UNPAID WAGES REGISTER.
Unpaid wages list is prepared in three foils, one is retained
by the cashier who prepares it as his office copy, the other
is sent to the Books section in the Accounts office and the
third copy is sent to bill preparing unit. These statements
are filed & numbered consecutively to facilitate detection of
any missing sheets at any time. When a claim is subsequently
received for any sum remaining unpaid through a pay order
or C 4 the same is verified with the unpaid wages register so
maintained and the fact of the subsequent payment is noted
against the entry of the relevant item. The pay order for
payment from Unpaid wages should be prepared after it has
been ascertained from the Pay department that the amount
has not already been disbursed by cashier out of his Imprest
or floating cash i.e. C 4.
RECONCILIATION OF UNPAID WAGES:
The reconciliation of unpaid wages is done separately for

debit and credit portion. The credits are reconciled with the
amounts remitted by the cashiers to Railway credit reflected
in the Cash slip, with the totals of the unpaid statements
received individually from cashiers. The debits are reconciled
with the totals of CO7 passed and amount accounted under
Deposit Unpaid Wages in the general books.
Recoupment of cash Imprest (C4s) of cashiers:
After remitting unpaid salary/wages amount in to Bank /

Treasury by the cashier but before sending of salary/wages
bills to Accounts office. If any employee approaches to cashier
with proper witness etc. the cashier out of cash available
with him can make payment to the concerned employee by
preparing C-4 voucher. After making payment by the cashier
279
13)

it is sent to Accounts office for recoupment of payment made

by cashier out of cash available with him. Accounts office
by giving a remark against the unpaid list item of employee
concern.
EMD- passing of pay orders and maintenance of register:
Earnest Money Deposit (EMD) submitted by the contractors

at the time of tendering in the form of paper security or
deposited/remitted at station should be maintained in
manuscript register. It shoud be released /refunded on issue
of Letter of Acceptance etc. since as per latest Railway Board
guidelines EMD should not be converted into part security
deposit.
14) SURPRISE CHECK OF THE CASHIERS (PARA 1989 A1)
a.
Check physical cash and note down the
denomination.
b.
Check revenue stamps on hand and note down
the value.
c.
Check C4s i.e. cashiers Imprest pending with
accounts.
d.
Check whether there is any P-28 and note down
the value. Ensure that P-28s are those, which
are not already included in the C4s.
e.
Value of extracts viz. On behalf payments
should be examined and value noted down.
f.
Dues from cashiers, if any may be noted down.
g.
Short passed/ Excess passed may also be
noted.
h.
Item no.1 above may include soiled notes, keep
separate denominations for soiled notes while
recording item no: 1.
i.
Check stamps on pay sheets and note down the
value.
280
Books Section
j.
Now, total cash available with the cashier
should be equal to sum of serial nos. 1 to 9.
k.
Check the private cash declared by the cashiers
with the Register maintained for the purpose.
l.
Check the safe seal Register.
m.
Checking of the undelivered cheques with the
cashier.
n.
The checking of checks or miscellaneous
receipts deposited by the various parties
remitted properly.

After exercising the above checks cashiers account (P6) is

prepared.
Examine the vouchers and identify the unpaid amounts in

Col.4.
Extract from Cashiers Cashbook subsequent to last P4 (Bill

returning advice) accepted by DC/Pay and his liability is
adjusted. Extract PMR No and amount in column no. 2 and 3
(column no. 1 is for date).
Ensure no voucher is older than one month from the date of
PMR.
Identify vouchers of different accounting units and show

distinctly.
v.
Having examined the above, record pending liability
month wise and accounting unit wise accordingly.
vii.
If any pending paid vouchers are on hand for
which P4 has been
prepared but not given
to DC/Pay, work out his liability minus receipt
vouchers is equal to current liability.
viii.
Compare the amount under column no.4 with
Sr.No.10 and certify.
281
In addition to above, the following points may also be

checked.
A.
Cashiers Ledger should be checked to tally the
liability of the cashier on that day.
B.
C4 Recoupment Register should be checked to
ensure the number of C4s given for recoupment
by the cashier.
C.
Vouchers handed over by the cashiers to
stations for payment should be checked with
handing over summary and handing over form
(HO) duly signed and acknowledged by SM to
whom it is handed over.
D.
Cheques District should not have cheques on
hand for more than five working days.
E.
Returned Cheques Register should have entries
of returned cheques. The returned cheques
should be entered in outside ledger. Accounts
will get NIL credit.
F.
Cheques district should not have liability for
more than one month.
15)
Accountal of Misc. Cash Receipts.
Every Pay office prepares a summery of all miscellaneous

cash receipts and sends it to the HQ along with all relevant
challans. HQ Booking section on receipt of the summary sorts
them out according to accounting unit-wise and sends the
vouchers to concerned accounting units to whom it pertains
along with an ATC giving credit to concerned accounting
unit and debiting HQrs. The ATC is accompanied with all
the relevant vouchers and date-wise totals of the amount
received. This section on receipt of the vouchers feed the
details of the vouchers there in date-wise, allocating the
different heads of account to which it pertains to. Then a JV
is prepared to account for such miscellaneous receipts by
crediting respective heads of account like EMD, Abstract Z
etc. and giving (-) credit to TDHQ.
282
Books Section
16)
Imprest Passing of First/Enhanced Imprest: Para 1050

- FI
An Imprest is a standing advance of a fixed sum of money

placed at the disposal of a branch officer to meet the petty
office expenses and emergent unforeseen expenditure. Pay
orders relating to such Imprest are received in accounts
office for payment. The following points are kept in mind
before passing such pay orders.
a)
That the Pay orders are accompanied with the
copy of sanction of the competent authority
duly attested by him.
b)
It has the concurrence of the Associate finance
branch.

Having been verified the above stated points the

pay order is passed by debiting the head 00867201
i.e. Permanent Cash Imprest and crediting head
00867002 i.e. Cheques & Bills. If one time imprest is
to be converted into regular imprest or if the amounts
of the imprest is to enhance the same procedure is
followed.
17)
Maintenance of Capital and Revenue Ledger: F 310 A1
The Ledgers both Capital and Revenue (Capital Ledger for

capital transactions and Revenue Ledger for transactions
revenue in nature) are posted monthly after closing of
the journal. The ledger reflects various heads of accounts
recording all receipts and charges of the accounting circle
and also show the progressive balances under those heads at
the end of each accounting period.
These figures are the general books figures and are reconciled
with the individual balances reflected under each head of
account.
283
18) Check List for Inspection of Cash and Accounts of a

Cashier:
When the Accounts staff with the gazetted officer visit Cash
office for inspection they should ensure the followings:
(a)
Cash Balance of the Cashier has been done by
actual count.
(b)
The bills in hand have been checked with
reference to the summary of bills.
(c)
Any bill has been retained beyond the prescribed
period.
(d)
The payment has been property witnessed as
observed in the body of the bills.
(e)
A summary of unpaid bills has been prepared.
(f)
The cash Balance has tallied with the amount
of unpaid bills in hand.
(g)
While determining correct book balance and
the balance of Cash-in-Hand on the date of
verification the following factors, have been
considered or not :
I.
Challan-In-Transit: (The amounts of
challan issued by D.C. but received /
taken into the Cash Book by Cashier)Verification should be done taking into
account the last complete challan only.
II.
List-In Transit: (Credit taken by the
cashier on submission of paid vouchers
to the D.C. but not scrutinised and
returned to Accounts office by D.C..
List in transit should be reconciled with
D.C.s Balance by the inspecting official.
III.
Dues retained by D.C. : ( Full amount
corresponding to the bills debited to the
cashier both in D.C.s balance sheet and
in Cashiers Cash Book not made over to
284
Books Section
the cashier) such dues are to be treated

as Assets in Cashiers Account.
IV.
Payment made through Debit Forms:
It is to be ascertained whether Debits
forms have been issued properly and on
getting the bills back after payments,
the Debits Forms have been cancelled
.Whether Debits Forms are issued
serially / sequencially, whether the
officials receiving payments through
Debit Forms have signed the Debit Forms
under proper seal and signature, Debit
Forms payment should be shown in the
Assets side of the Cashier s Balance
Sheet.
V.
Cash on account of M.O.Returned:
Money order register to be checked and
amount returned included in the liability
of the cashier.
VI.
Amount shown as unpaid in the list of
paid vouchers : Has Cashier deposited
unpaid amount to D.C. through M.R. or
not ?.
VII.
Amount given by D.C. in advance of
corresponding Bills:- Do the accounts
of cashier include this amount in his
liability ? The amount is a liability of the
cashier because the foil has not been
received through D.C.s challan.
19)

285

[Para 803 A1]
SR
NO.
Item of
work
test
checked
286

given below:-
Extent
of Test
check
prescribed
3
Particulars of
vouchers
elected
for test
check
4
Name
of the
SO/SSO
(A) who
had test
checked
the item
5
Result
of
Test
check
Whether the
discrepancy in
col.6 has been
pointed out by
the supervisory staff
7


Books Section

test check.
Another important item of test check is the inspection

of different registers by the Gazetted Officers. The
intervals at which different registers maintained in
Accounts Offices should be put up for inspection by
Officers.
19.3) Periodicity of submission of Test- Check oregister

to Officers:
Important tips for AFRES Users:-
Each and every user in the section including

S.S.O. is allotted separate ID name and
password. Supervisor of the section will ensure
periodical changes of password for each and
every user of Books section. The entry of such
effect is to be kept in the manuscript register
opened for the purpose. The period for changing
in password will be at the interval of at least 15
days .
After customization of AFRES programe, SSO

(In charge of the section) will run Audit trail of
their section. This is to be run at the interval
Every test checks register should be provided with

an inspection sheet below the front page indicating
the month of test check, date on which put up and
the date reviewed by the Officer concerned. The test
check registers of Section Officers and Senior Section
Officers should be put up to the Branch Officer on the
10th of each month indicating the test check done on
the work of clerk in the preceding month for review
287
of 15 days and obtain signature of concerned

officer. SSO will be given rights for accessing
and running Audit trail.

It is also to be ensured by supervisor of the

section that the ID and password is not to be
shared with any other person.
If there is any modification in any rules/

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

AFRES USER MANUAL.
288
Chapter 10
CHECK LIST FOR WORKSHOPS

1.
Workshop Manufacturing Suspense (WMS)
Whether WGR is being reviewed monthly.

Work orders with no booking for more than three
months are reported to CWM.

Monthly review of deposit works on hand/bookings
and custody of deposits.

Cases of bookings on closed work orders.

Para 1224 W on Review of WMS to be followed.

Analysis of unit cost of repairs should be carried out.
Review of Balance under Workshop Manufacture Suspense
Account. The balance under the Workshop Manufacture Suspense
Account should be reviewed monthly to see:-
(1)
(2)
(3)
(4)
that all the items are current and have been

undertaken after the issue of a proper work order,
under the sanction of a competent authority;
that the details consist of nothing else except
labour, material and work on cost charges expended
on unfinished jobs or completed jobs awaiting
adjustment;
that there are no credit items in the detail of balance
and if there are any such items, they are noted for
immediate adjustment;
that in the case of jobs undertaken for outsiders, a

sufficient deposit has been made, where such a deposit
is required by rules, and on the first appearance
of a work it is seen that an estimate is on record,
containing the extra percentage charges required
under the rules, and accepted by the party ordering
the work; and
289
(5)
that there are no inefficient balances and the

periodical adjustments in respect of overcharges
and undercharges under the oncost, manufacture
and repair work orders are carried out regularly as
laid down in Chapter X and the outstandings are not
allowed to accumulate.
The results of the review should be put up to the Financial

Adviser and Chief Accounts Officer at least once a year.
2.

at the end of the financial year.
STORES

AAC to be arrived at with due diligence.

290
The Suspense Heads are certain intermediary/

adjusting heads of accounts operated in Government
Accounts to reflect transactions of receipts and
payments which cannot be booked to Final Head
of accounts due to lack of information as totheir
nature or for other reasons. These heads of accounts
are finally cleared, when the amount under them is
booked to their respective final heads of accounts,
by Minus Debit or Minus Credit suspense heads. If
these amounts remain un-cleared,the balance under
the Suspense Heads would go on accumulating and
would not reflect Receipts and Expenditure of Indian
Railways (IR) accurately. The balances under each of
the Suspense Head should be reconcilied and cleared
ABC analysis of stores should be carried out.
Issue note (SHOP/Stores)/Copy Pairing is upto date

with NIL differences.
Whether Register
maintained.
of
Provisional
Oldest items awaiting adjustment.
Adjustments
Store Suspense should be as minimum as possible.
Check List for Workshops
Analysis of non-moveable and less movable items is

being done periodically.
3.
GATE ATTENDANCE
M&P procurement is done with due diligence.
OPENING/CLOSING Procedure of Gates Whether any

Loopholes ?
Clocks are in order or not ?
Whether GA Cards Punched Four Times.
4.
INCENTIVE
Number of people treated absent after Window Gate

Time is Over (30 minutes/3 minutes).
Absentee Register maintained or not
Additions/Deletions of attested or not
Number of Duty Certificates issued/Shops having

highest Duty Certificates & their out turn.
Excess Time Cards (Plus Cards) issued and whether
any shop showing regular or excessive issue of plus
cards.
Whether all completed job cards arrive within 48 hrs.
of completion of job.
Whether any shop regularly showing profit >50% and

has allowed time reviewed.
Whether allowed time has been revised due to

improvement in technology through new machines.
Idle Time Bookings How much on account of tools/

want of work ? Whether deductions done from
supervisors salaries ? (2% limit)
Systems of preventive machine maintenance is in

place.
Whether Master Planning Card made available to
WAO & all allowed time Checked in Rotation.
291
5.
OTHER ITEMS
292
Non Stock items Review/Conversion to Stock

Shop floor Verifications/Custody to Stock.
Fluctuations in Unit Cost to be watched.
Leakages of scrap to be eliminated through

qualification from point of generation of Scrap.
Sensitivity Analysis is to be done for inspection of
Workshop.
Lateral transfer of store may be indicator of poor

planning.
Review of staff should be done from time to time

taking into account the work load and off loaded
work.
Asset Register should be updated from time to time.
Special studies should be carried out on different

topics every month.
Chapter 11
CHECK LIST FOR WORKSHOPS

1.
The Suspense Heads are certain intermediary/adjusting

heads of accounts operated in Government Accounts to
reflect transactions which cannot be booked to Final Head
of accounts due to lack of details at that point of time. These
heads of accounts are cleared, when the final head is known,
by Minus Debit or Minus Credit to the suspense heads.
IR operates the following main Suspense Heads:
Suspense Accounts Operated by Railways
Under Revenue
Receipts:
Under Revenue
Expenditure:
Under Capital Expenditure:
i. Traffic Account, and ii. Demands Recoverable.

i. Demands Payable, and ii. Miscellaneous Advance- Revenue
i. Purchase Suspense
ii. Stores Suspense
iii. Workshops Manufacture

Suspense iv. Miscellaneous AdvancesCapital
For Adjustment of Remittance Transactions:
i. Reserve Bank Suspense, ii.

Remittances into Bank
iii. Cheques and Bills etc
For settlement of inter governmental transactions:

i. PAO Suspense
2.
Revenue Receipts
For recording the revenue receipts, two suspense heads

namely Traffic Account and Demands Recoverable are
operated. If these amounts remain un-cleared, the balance
under the Suspense Heads would go on accumulating and
293
3.

4.

5.

6.

7.

294
would not reflect the Receipts accurately. Large outstanding

amounts under different suspense heads in traffic accounts
reflect unrealized earnings, therefore, blockage of the capital.
Traffic Account
Traffic Account is a Suspense account operated for the

purpose of recording the revenue earnings on accrual basis
in a months account to which they pertain and also for
watching the progress of their realization. The outstanding
balance represents unrealized earnings therefore exhibited
on the Asset Side in the Balance Sheet.
Freight Outstanding
Freight is the charges levied for the carriage of goods

including transshipment charges. Freight Outstanding will
arise when the way-bills / invoices have been accounted for
in the books of Railways (Station Balance Sheet), but freight
charges have not been realized. Generally around 50 percent
of unrealized earnings of railways are on account of Freight
Outstanding. Therefore, fortnightly review is necessary.
Admitted Debits
Every debit raised by the Traffic Accounts office on the

station on account of error in charging fare or freight, short
remittance of cash etc. accepted by the station is known as
Admitted Debits.
Objective Debit
Every debit raised by the Traffic Accounts office on the

station on account of error in charging fare or freight, short
remittance of cash etc. but not accepted by the station and
kept pending for want of clearance through withdrawal is
known as Objected Debit.
Wharfage and Demurrage
Indian Railways Commercial Manual defines Wharfage as

the charge levied on goods for not removing them from the
Traffic Suspense

8.

9.

10.

railway after the expiry of the free time for such removal.
Demurrage means the charge levied for the detention of any
rolling stock after the expiry of free time, if any, allowed for
such detention.
Monthly reviews should be carried out to clear the
outstanding.
Demands Recoverable
Demands Recoverable is a suspense head operated to bring

into the books of Accounts on accrual basis all the dues to
the Railways within the same financial year which were not
realized during the year. The closing balance under this head
represent unrealized amount in the form of outstanding
Demands Recoverable which will be exhibited on Assets side
of the Balance Sheet of Indian Railways.
There should be proper mechanism to watch whether bills

are properly raised and realized during the year of incurrence
of expenditure.
Review of Bills Recoverable register should be conducted

monthly .
Remittance Transactions
Transactions between the Ministry of Railways and Other

Ministries or States for which the accounts are not maintained
by themselves are Remittance Transactions. Two suspense
heads (i) Remittance into Bank and (ii) Cheques and Bills are
maintained.
Remittances into Bank
This is a Suspense Head operated to record the remittance of

earnings into the Banks. This Suspense head is debited with
amount of all Remittance Notes by crediting the Appropriate
Revenue Service head. Each Bank with which the railway has
transactions sends daily statement showing the amounts
deposited by the various departmental officers on behalf of
Railways. The Credit Scrolls should be checked immediately
295
on receipt of the counterfoils of cheques and Cash Remittance

Notes. At the end of the month the total amount of the
remittance acknowledged by the Bank will be debited to the
Head Reserve Bank Deposits (Railways) by contra credit
to Remittance into Bank. The balance under this suspense
head, therefore, represents the amount deposited into bank
but not acknowledged by them. The balance under this head
i.e. Remittances into Bank should always be a Debit Balance.
Para 444 of Indian Railways Code for Accounts Department
Volume I envisages that reconciliation is to be done every
month by FA&CAO.

11.

12.
The Audit had revealed that the negative balances under this
head were mainly due to unidentified and unlinked credits,
non reconciliation of balances and receipt of credit towards
freight charges through e-payments before accrual of debit .
Inter - Governmental Transactions
For the settlement of inter-departmental and inter

governmental transactions arising in the books of Railway
Accounts Offices, PAO suspense head is operated. Outstanding
Debit balance under this Suspense Head would mean that
payments made on behalf of other Accounts Offices are yet to
be recovered. Outstanding Credit balance under this Suspense
Head would mean that payments have been received by the
PAO on behalf of other PAOs which are yet to be paid. The
balance under this head is exhibited on the Liabilities side of
the Balance Sheet.
General Observations
The increase in suspense balances was found mainly due to

the following reasons:
296
Importance of clearance of suspense balances

was not fully realized by the Executive/Accounts
Departments.
Expenditure was allocated indiscriminately to

suspense heads without making efforts to allocate
the same to the final heads of account.
Traffic Suspense
The year wise break up of balances under various

suspense heads were not maintained as envisaged in
the Code.
No proper action was taken to adjust them as early as

possible either by debit to the relevant final head or
by transfer to other accounting units to which they
pertained.
Incomplete or incorrect postings in the suspense

register without sufficient particulars/details etc.
resulted in difficulties in linking the items at the time
of clearance.
Continued and effective review was not done to clear
the items resulting in items becoming old and difficult
to clear.
12. Points to be noted :
1.
2.
3.
The suspense balances under Traffic Account on

account of freight outstanding, admitted debits,
objected debits, wharfage/demurrage and demand
recoverable need to be kept at minimal as it has an
impact on earnings of the Railways.
Monitoring mechanism for clearance of old suspense

balances needs to be strengthened at Zonal Railway
level. Corrective steps need to be taken for clearance
of very old items.
Correct posting with sufficient details should be made

in the Suspense Registers. Item should be placed
under Suspense or written off with the Sanction of
the competent authority, if necessary.
The important and significant areas of internal checks have been covered in this
Hand Book. However, for detailed procedure, railway codes and process manual
notified from time to time by Railway may be referred while examining the
proposals.
297

Railway Hand Book On Internal Checks

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Railway Hand Book On Internal Checks

Uploaded by

Copyright:

Available Formats

HAND BOOK

Canons of Financial Propriety

The expenditure should not prima facie be more than the

The amount of allowances, such as traveling allowances,

Financial Scrutiny of proposals;

Checklist for Workshops Accounts

SCRUTINY IN FINANCE SECTION

Detailed justification is provided by the branch

Indication of completion period and currency

Basis of rates and correctness of related

Calculation of ROR for remunerative works is

For Out Of Turn works, reasons for urgency

Following points needs consideration while checking

Hand Book on Internal Checks (Railway Accounts)

Whether the estimates are based on LAW

Detailed estimate has been proposed in the

Certification of quantities is based on realistic

Rates taken are based on last, lowest, latest

Necessary auxiliary provisions made are as

Check of scope of works with respect to

Scrutiny in Finance Section

The estimate is arithmetically accurate.

In addition, the divisional finance should make its own rate

Deviation statement with clear demarcation

M&P items should not be clubbed in the works

All the provisions in the estimate are as per

While checking the proposal of Track estimates,

Annual GMT and total GMT carried over that

Quantity assessment of Ballast in terms of

Avoidance of separate rail renewal and sleeper

Check of estimate against inclusion of M&P

Realistic assessment of TRD and S&T sub

Hand Book on Internal Checks (Railway Accounts)

Rates for same type of estimates to be seen.

Compliance of FA&CAOs observations on

M&P AND RSP PROPOSALS

Whether as a result of mechanization any reduction in

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

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

Check of replacement vs. reconditioning analysis

Whether the Procurement or Replacement is likely

Introduction of a machine for the first time should be

Scrutiny in Finance Section

Quotations are exceptions to the tendering rule, therefore,

Reasons for dispensing with calling of tender.

Whether the quotation has been invited as per Rly.

Approval of the competent authority for inviting

Whether the quotations have been opened properly

Whether the proposal is for fancy and furnishing

Certificate of suitableness, reasonableness, technical

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

Adherence to annual ceiling limit of sanctioning

(Item No. 2.7.4.1 of B.S.Sudhir Chandra

Hand Book on Internal Checks (Railway Accounts)

Following details are required for consideration of repair

Repair proposal is not for items which have been

The nature of the work done by machine and

Whether the machine is covered under warranty if so,

Justification for the work and mode of tendering

Division accountant vetting in case of divisional

Reasonability of rates to be certified and should match

Scrutiny in Finance Section

Warranty for satisfactory working after its repair.