Structure of Railway Accounts Finance Commissioner Addl. Finance Commissioner Financial Advisor & Chief Accounts Officer / Genl.

FA&CAO (Budget & Expd.) Dy FA&CAO FA&CAO (WST) Dy FA&CAO Divisional Level Senior Divl. Finance Manager /Divl. Finance Manager Asstt. Divl. Finance Manager Asst. Financial Advisior/Workshop AFA/TA Divl. Cashier (Non Gazetted) FA&CAO (Construction) Dy FA&CAO

Structure of Accounts on Divl. Level 1. Sr. section Officer 2. Accounts Assistant 3. Junior Accounts Assistant 4. Accounts Clerk 5. Record Lifter 6. Record Sorter 7. Daftari 8. Waterman 9. Peon 10. Farash Various Sections in Accounts Office 1. Admn. Section 2. Books & Budget 3. PF 4. Pension 5. Establishment 6. Expenditure 7. Fuel 8. Finance 9. Inspection 10. Efficiency
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Admn. Section :- When a bill received from any executive officer to Accounts office the same is entered in a register & provided a cash order no. to which mean the bills, pay sheets etc. have been received for payment in accounts office, and the same are to be passed within the days fixed for each voucher by the respective sections to which it relates after every 10 days . A report to is to be prepared which show that the O/S bills. Which have not been passed within a stipulated time fixed for the same. The said report is called 10 days report prepared by the staff who has been deputed the work of receipt of bills, pay sheets etc. etc. & entered in Co6 register. Those bills, pay sheets & PF withdrawl etc. etc. are not passed within stipulated time, proper reasons are to be entered in Co6 register or if the vouchers are returned to the executive officer, with certain observations the same are not taken into 10 days report. On receipt of bill concerning staff sent to respective section for disposal . If the bills are in order, the same are passed with a Debit & Credit summary & detail of cheque to be prepared known as Co7 duly signed by the concerned Accounts Officer & sent to Books section for preparation of cheques, on the basis of Co7 monthly cash book is prepared which helps in preparing the account. Books & Budget :- Basically on Indian Railways the preparation of budget & controlling of Budget is comes under Engg. Deptt. Of Railway, but the same is controlled by the Accounts Deptt. For which Accounts Deptt. Has got various tools viz. monthly financial review, August Review, 1st modification & then final modification simultaneously Books section submit monthly accounts of every month in the following month to which it relates. In end of every financial year an annual accounts is submitted to HQs office of zonal rly. & then zonal rly. to the Rly. Bd. After submission of annual accounts, each Rly. Submit an appropriation account which includes the comparison of original budget with expenditure & final budget allotment with the actual expenditure in a year similarly the bills passed by various sections & Co7 prepared are sent to Books section, where cheques are prepared & sent to cash office for disposal. Preparation of budget, Approximate account, Account current & appropriation accounts are the main part of books & Budget section. Demand for Grants (i) Revenue demands Revised demands for Grants was in force w.e.f. 1.4.79 Railways are Govt. undertaking and a budgetary structure with an entirely commercial basis is difficult to built over a department system. The demand for grants presented in two parts. Part-I- All Railways. Part-II-Individual Railway Units. Each part has 3 sub divisions i) Sub-Heads- of Demand representing major functional activities. ii) Detailed Head- represents further break up of the activity classification i.e. identifying the expenditure in greater detail. iii) Primary Units- (object of expenditure) identifying What the expenditure denotes i.e. salary, wages, Allowances, Materials, Contractual etc. etc.
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The following are the restructured Demands for grants. Part I All Railways :01Railway Board 02Misc. Expenditure-(RDSO, DCW, DLW, RRB, Staff College of Vadodara & Statutory Audit) Part II Individual Railway Units :A03- General Superintendence & Services. B04- Repair & Maintenance of P.Way & works of Srvice Buildings & Track. C05- Repair & Maintenance of Locomotives (POH & IOH) D06- Repair & Maintenance of carriage & wagons E07- Repair & Maintenance of Plant & equipments.(Elect, S&T, Loco Running, Engg, etc. etc.) F08- Operating Expenses- Rolling Stock & equipment. G09- Opeating Expenses- Traffic & Commercial. H10- Operating Expenses- Fuel. J11- Staff Welfare & Aminities & Medical Expenses. K12- Misc. Working Expenses,-(RPF, GRP, Canteen Staff, Works man Compensation & all type of compensation. 12N- Suspense (RMA, Deposit & D.P) L13- Retirement/Benefits. 13`0`- Govt. Contribution to New Pension Scheme. 14M- Appropriation to Funds. 15Dividend to General Revenue & Repayment of loan taken from Genl. Revenue. Primary Units (objects) of Expenditure 01 Salaries and Wages 02 Dearness pay and Dearness Allowances 03 Productivity Lined Bonus 04 House Rent Allowance 05 Compensatory (City) Allowance. 06 Interim Relief. 07 Transport allowance 08 Matching Contribution of Central Government towards Defined Contribution Pension 09 Wages of Casual labour. 10 Kilometer allowance 11 Night duty allowance 13 Other allowances. 14 Fees and honorarium. 15 Transfer allowance 16 Travelling expenses 17 Air Travel Expense sanctioned in lieu of privilege passes
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18 19 20 22 23 24 27 28 31 32

Officer Expenses Rental for P & T Telephone and call charges including Trunk Calls Advertising Expenses 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). 33 Transfer of debits/credits from other units-(This primary unit may be used for classifying. Transfer debits/credits other than for Stores debits/credits received from Stores Accounts in which case Primary Unit 27 may be used) 34 Adjustment of Wages on POH and Other repairs from WMS Account to Revenue Heads. 35 Adjustment of materials on POH and other repairs from WMS to Revenue Heads. 36 Excise duty paid/payable for purchase of materials. 37 Customs duty paid/payable for purchase of materials. 38 Sales Tax paid/payable for purchase of materials 39 Air Travel (Domestic) 40 Air Travel (Foreign) 41 Value Added Tax 50 Cost of computer hardware/system, Software/application software including expenditure on excise/customs and sales tax; IT related consultancy contracts, cost of up gradation i.e. one time expenditure not being of recurring nature. 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. (ii) Capital (Demand No. 16) Similarly the Revised classification of expenditure on works- irrespective of whether they are charged to capital, DRF, DF, OLWR & SF will come under a Single group of classification in line with demand-16, viz. Assets-Acquisition, construction & Replacement. The classification of works expenditure is in the form of 6 digits - 4 digits denotes detailed head of account & the last two digits are object of expenditure (Primary units) The source of financing is indicated in alpha according to the source of financing which is detailed as under : P for Capital, Q for DRF.
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R for OLWR S for DF SF for Safety fund. In works expenditure. The (Plan heads form the sub-heads of demand) will represent minor heads of Accounts. For example. P-1131-03 Payment to contractors in a new line project. P-1131-01- Wages of departmental establishments in a project. P-1131-05- Materials drawn from stock. P-1131-04- Materials directly Purchased. In view of above, it is clear that the sub-heads & detailed head. (1131) denotes the function of work and that too we further detail. Primary units i.e. 01, 02, 03, 04, 05, are denotes as object of work i.e. salary, wages, contractual, store supply & direct purchase etc. etc. CLASSIFICATION OF CAPITAL AND OTHER WORKS EXPENDITURE Summery at Minor Heads of Classification showing Plan Head Codes for Works Expenditure. 11 New Lines(construction) 41 Machinery and Plant 12 Purchase of new lines 42 Workshops including production Units 13 Restoration of dismantled lines 51 Staff Quarters 14 Gauge conversion 52 Amenities for staff 15 Doubling 53(i) Passenger amenities 16 Traffic facilities- Yard remodeling and (ii) Other Railway Users amenities. others. 21 Rolling stock 61 Investment in Government Commercial undertaking-Road services 31 Track renewals 62 Investment in Government Commercial undertakings-Public undertakings. 32 Bridge work 64 Other specified works 33 Signaling and Telecommunication works 71 Stores suspense 34 Taking over of line wires from P & T 72 Manufacturing suspense. Department 35 Electrification projects 73 Manufacturing suspense 36 Other Electrical works 81 Metropolitan Transport Projects Primary Units (objects) of expenditure for Works :1) Pay and allowances of Department Establishment 01 2) Payment to Casual labour 02 3) Payment to Contractors and others for Engineering works or supply and erection contracts etc. 03 4) Direct supply of material 04 5) Stores supplied from stock 05 6) Freight on stores 06 7) Credits for released material 07 8) Others 08 9) Transfer of debits/credits affecting capital works expenditure/suspense accounts 09 10) Productivity Linked Bonus 10
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11) Excise duty paid/payable for purchase of materials 11 12) Custom Duty 12 13) Sales Tax 13 14) Interim Relief 14 15) Travelling Expenses 15 16) Air Travel (Domestic) 16 The debit & credit of the works expenditure i.e. capital, DRF, DF, OLWR, are as under: (i) Capital- (A) Capital credited with the cost of capital of an assets (Other then land) which is abandoned Debited or disposed of without being replaced. (A) Cost of sale of land. (B) Difference of cost of Assets replaced through DRF and original cost chargeable to capital. (C) Cost of labour originally incurred in laying the assets. Or parts when such items are subsequently transferred for use on a new work. (D) Original cost debited to capital of an asset replaced at the cost of OLWR. (ii) DRF: (Depreciation Reserve Fund)- This fund is credited with the disposal of material, originally cost debited to capital or the material released from a work replaced at the cost of DRF. DRF is debited to the work related to replacement, renovation of assets , Whose original cost charged to capital. (iii) DF. (Development Fund). DF. (Development Fund credited with amount transferred from RPF (Revenue Reserve Fund), debited with the cost of assets on abandoned and original cost earlier debited to DF. (iv) OLWR. (Open Line Works Revenue)- Credited with the cost of amount realized from the assets not charged to OLWR. Debited with (i) works not related to passenger amenities. (ii) Un remunerative works for improvement of operational efficiency costing not more than 3 lakhs. (iii) The replacement work which are not chargeable to Cap, DRF & Revenue. Provident Fund Section :- This section maintained the debit & credit of Provident Fund of each employee. On completion of one year after appointment a recovery of 1/12 of basic pay is made from the salary of each employee & deposited (credited) to PF account & whenever employee takes loan from PF (temporary / permanent) according to rules framed for the same that amount is debited from employees PF account. Each employee provided a PF number, which remains permanent in his entire service from 1st Jan. 2004 the PF contribution has been stopped & NPS scheme has been introduced in which every month 1/10th amount from each employee is recovered. This is applicable to the employees who appointed after 01.01.2004 . Pension :- Pension Section deals all the matters related to the Settlement of an employee whether Superannuation, Voluntary, Compulsory & death case. This section deals with gratuity, Commutation & Pension / Family Pension etc.

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Establishment :- In accounts Deptt. Establishment Section deals with the regular & supplementary Paysheets, of all railway employees except the staff of statuary Audit. Establishment section is dived in two different part . (i) Establishment (Gazetted) (ii) Establishment (Non- Gazetted) In this section, cader register, scale check register, suspense registers, of Loans & Advances are maintained GIS, Leave salary etc. etc. are also dealt with in Estt. Section. Expenditure :- Expenditure section deals with all the expenditure matters related to outside parties whether in the form of contractual or supplier bills. In addition to it Capital account is posted & maintained in Expenditure section. Expd. Section also deals the matters related to bills recoverable from various deposit works & also from other deptts. Canons of Financial Propriety Each & every normal or lay man in his personal life make a plan before any type to expenditure proposed to be incurred. Before spending always thinks the proposed expenditure are necessary or can be avoided and if can not be avoided, the proposed expenditure are beneficial or otherwise. If proposed expenditure is beneficial then how much benefit/profit /remuneration Will be gained after total expenditure . The Railway is a Govt. Owned commercial organization and Railway has to spent a huge amount to maintain/upkeep the assets acquired and also spent to provide the facilities to passenger/staff. As such to run efficient working of Railway it is to be worked out that there must b e a minimum profit against the expenditure, so done or proposed to be done. The Railway administration must have a proper financial justification with that of remunerations before any expenditure on the basis of following principles. A. In any case the expenditure may not be increased from the required amount and each & every Railway authorities must be vigilant as he is spending his personal amount. B. Sanctioning authority while sanctioning the proposal for expenditure, it may be kept is mind that the proposal directly or indirectly not benefited to any person. C Sanctioning authority while sanction the proposal for expenditure must be drawn or does not passed such an orders which directly or indirectly benefited to a particular person or caste. D Govt. Revenue shall not be used for a particular person/caste subject to: (i) the amount of expenditure is negligible (ii) the amount of expenditure in the court of law, (iii) the expenditure is according to policy. E To meet with the special nature of expenditure that doesnt become the source of income viz T.A. (Travelling allowance) etc. etc.

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Awards of works in Works Programme: Works Programme : All the projects/works which are proposed to be included/executed in ensuing financial year are proposed through estimates for inclusion after sanction by the competent authority & similarly acquiring of machine & plants are also proposed to be acquired in after sanctioned by the competent authority. The civil work related to Engineering works included in a book is called pink book and Machine & Plant acquired are included in M&P Programme. Inclusion in Works Programme & Pink book the proposals are prepared through in estimate. The estimates are of 07 types. (i) Abstract Estimate : To obtain an administrative approval an abstract estimate is prepared. (ii) Detailed Estimate :- If proposed work is sanctioned by the competent authority and included in Pink Book/M&P Programme a detailed estimate is prepared & vetted by the associates finance before execution of work. (iii) Supplementary Estimate : These estimates are prepared for any items of work which ought to have been included in the first instance in the estimate already sanctioned but has not been included or which it is found later should be considered as being integral part of the work or scheme already sanctioned. (iv) Revised Estimate:- Revised estimates are prepared where it becomes apparent that the expenditure on a project or work is likely to exceed the amount provided for in the main estimate. (v) Project Abstract Estimate : It is an abstract estimate of project and is prepared to have the administrative approval to the project proposed to be undertaken. (vi) Construction Estimate : It is just similar to the detailed estimate for all kinds of works included in a project. (vii) Completion Estimate : These estimate are prepared in supersession of construction estimates. It shows in a tabular form the following particulars:(i) Amount of sanctioned estimate. (ii) Actual expenditure on all the works up to the date of the construction estimate. (iii) Commitments on that date (iv) Anticipated further outlay. (V) Total estimated cost. (vi) Difference between the sanctioned estimate & the estimated cost. Works, Contracts & Agreements : When it is decided to execute any work and included in works Programme/M&P, the work are executed to obtain a competitive rates the tenders are invited. The tenders on Railway are of three types :(i) Open tenders. (ii) Limited Tenders. (iii) Single Tenders.

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(i) Open tender : Open Tenders are invited through published in local/state level newspapers, in which each & every contractor can filled in the tenders. All tenders shall be accompanied with the earnest money @ 2% of estimated cost in the shape of FDR, DD & Cash deposit etc. etc. If tenders estimated cost is more than 10 lakhs, the tenders must accompany the credentials as under:(a) A similar nature of work costing 35% of estimated cost in last 3 financial year shall be executed. (b) A total work over shall be 150% of estimated cost in last three financial year. (ii) Limited Tender : Limited ender are invited from the approved list of contractors who registered in different categories. Viz A,B,C and So on. (iii) Single Tender : Single Tenders are invited from a single firm ( manufacturer or monopolized items). For Single Tender prior approval of G.M. is required before invitation of tender. The open tender shall be sent to CPRO for publication in Newspaper & upload on Railway Website. (Rail net). After opening the tenders the tender committee being 3 members which are : (a) Convener must be the officer to which is tender is related. (b) Accounts Officer. (c) Third Member nominated by the competent authority. The tender committee sanctioned the rates quoted by the tender, with that of credentials & financial status etc. etc. after discussion & scrutiny of credentials submitted by the tenderer and submit their report to accepting authority. On acceptance an acceptance letter is issued through the signature of head of branch to which it relates On receipt of acceptance letter successful tenderer has to submit the performance guarantee issued by the Bank or FDR @5% of accepted cost. Within 15 days from the date of issue of acceptance letter. The earnest money @ 2% of unsuccessful bidder is returned. Fuel Expd. Sec. :- Fuel expd. Section deals & prepare monthly fuel account after receiving the monthly receipt & issue statement from various Diesel shed / fuel point of Division Fuel section raised/accepted the debits received / issued fuel to different Locos of different Division/Rly. And also prepare a monthly fuel a/c submitted along with account prepared by the Books sec. Inspection & Efficiency :- Accounts office is to check the subordinate executive offices as per schedule programme and all section are allotted monthly inspection of a subordinate offices and after inspection, inspecting officer submitted the report in inspection Section Inspector section follow up/chase up with executive officer for closure of paras /observations raised during inspections.

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Statutory Audit The Comptroller & Auditor General of India is the final Audit authority in India. Comptroller & Audit or General of India is responsible for the audit of accounts of Indian Railways. The form in which the accounts of the Indian Railway are to be kept and any changes in the accounts classification affecting the recording of expenditure in the finance & Revenue accounts of the Govt. of India are also Subject to the approval of CAG. For the audit of Railway Accounts the CAG is assisted by the Additional Deputy Comptroller & Auditor General (Railway) and under the additional Deputy Comptroller & auditor General are the Directors of Audit of Indian Railways who are responsible to see on their Railway. (i) the system of accounts used by the internal check authority is correct. (ii) the method of check applied at every stage of the accounts is sufficient. (iii)the accounts are maintained properly, and that arrangements exist in Accounts Offices to ensure attention to the financial interests of the Railways on the part of all concerned. These objections are achieved by a percentage check to be applied to the vouchers and other connected records of the Accounts Office and also by inspection of the initial records and documents on the spot. During Post audit of paid vouchers, if any irregularities are observed or any deviation in policy is observed, the Director Audit raised a Rough Audit note against the officer concerned and a copy of the same is sent to the Accounts Officer for necessary action If Rough Audit note is not decided within stipulated time, the same is converted in to the Audit note Pt-II ( in case of regulations valued upto Rs. 5 lakh) If the irregulaties are observed amounting to more than Rs.5 lakhs and upto Rs.10 lakhs a Pt-I Audit note is framed against the executive department to which the irregularities have been detected with the copy of the same is forwarded to the associated accounts. On receipt of Rough Audit Note, Audit Note Pt-II & Audit Note-Pt-II, in accounts office, the irregularities intimated by the Director Audit is informed to respective executive authorities to settle the same through a Tripartite meeting with Director Audit. In case of serious irregularities or loss of huge amount to he Railway administration detected during post audit, a draft para is framed which is prepared in 6 copies signed by the PAD (Principal Director of Audit) and sent to G.M. at his personal address, respective Head of Department to that branch it relates one copy of the same send to FA&CAO, one copy to additional Deputy Comptroller of Auditor General and a copy kept as office copy. On receipt of Draft para., G.M. discussed the matter with the Head of Department of the branch and also with the FA&CO and draw a draft reply and send it to the Addl. Deputy Comptroller & Auditor General or make necessary recoveries of payment from the salary of respective Head of Department or directly affecting officer.
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If the Deputy Addl. Comptroller & Auditor General is not satisfied with the draft reply received from the General Manager the matter is taken to the notice of the Comptroller & Auditor General of India, who submitted to the Public Account Committee (PAC) & in the House of Parliament. Similarly Director Audit may inspect the various/different offices of Railway & check the documents with related to the extant orders. During course of inspection, if any deviation or irregularities is observed the same is advised to the concerning branch officer through Audit inspection report & simultaneously accounts officer is also advise to take necessary action on the issues raised. Similarly there is a statuary Audit Deptt. in Rly. Deptt. work under CAG & have an independent identify. The staff of audit Deptt. also conduct the inspections of executive Deptt. and also post audit the vouchers passed by the Accounts Deptt. If any procedural error or any excess payment irregulaties observed during inspection or post audit of paid vouchers the same as taken in Audit note, pt- I, pt- II special letters etc. and sent to Accounts Deptt. & also executive office to settle the same.

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