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No. PSFIN / 2006/459-487/8635 Dated: 16/10/2006

Subject: Guidelines for disposal of work in Finance Department

1. It is seen that in a good number of files referred by Administrative
Departments to FD, notings done in the FD are very long, mainly due to repetitive
noting as well as different opinions expressed. While the expression of opinion
remains unfettered, expressing contradictory opinions within the FD on a file of
administrative departments is not appropriate. Therefore, the matter was
discussed and it has been decided that Finance Department should follow the
system of buff sheets on the files referred to by other departments and record only
the approved opinion/advice.

2. In those files of administrative departments, where detailed examination is
not necessary, simple concurrence may be recorded and returned.

3. In cases which are not clear or where information is inadequate, it is
necessary to discuss with senior officers in the FD before returning to the
administrative department for clarifications or additional information.

4. In all matters of concurrence, it must be remembered that FD is only an
advisory department and therefore, should give only advice and should desist from
giving mandatory directions.

5. In order to avoid multiple noting, it may be necessary to record the note in
typing or legible handwriting at levels, which are specified. Depending on the
category or type of cases, each section may decide the matters which are to be
initiated at different levels.

6. It is noticed that in some of the cases, the Finance Department itself has
been asking for reference to be made after the event. It must be noted that
concurrence of expenditure sanction for an amount not exceeding the proposed
limit is to be taken beforehand; post-facto references are to be done only in
unavoidable cases.

7. Examination in FD is not a pre-audit exercise (which is the prerogative of the
Pay & Account Officers). Examination in FD in routine cases is limited to the extent
of looking at: i) Level of competent authority to sanction ii) Availability of budget
iii) Conformity with rules and instructions issued by the Government and iv)
Propriety of expenditure.

8. Files submitted to higher authorities (like CS, FM, CM & LG) for approval
may be marked back to the Deputy Secretaries concerned directly except in cases
where a different opinion/decision or additional instructions have been recorded.

9. Files, which are originating in FD in relation to Taxation and other matters,
will need a different approach. Files coming from Commissioners under single file
system should not be sent to the section routinely for examination. They should be
handled at the level of Dy. Secretaries and put up. However, in linking up with the
previous files or records, the help of the section may be taken.

10. Requests for authorization for funds coming from comparatively lower levels
of administrative departments throughout the year should be discouraged since
that erodes financial discipline.

11. With regard to the functioning of FD, a set of Good Financial Administrative
Principles and Practices were discussed and finalized in the Secretaries meeting
sometime back. These are given in Annex I for reference and guidance.

Pr. Secretary (Fin/Plg)

To: All officers in Finance and Planning Department


Good Administrative Principles

Good Administrative Practices
1. Diligence (careful and conscientious) Deal with public funds with care and
caution and comply with law and rules
2. Cost effectiveness Select the most economical alternative
in a transparent manner, after
benchmarking the required/acceptable
quality and performance level
( GFR 137,161 )
3. Timeliness Take a holistic view
( government as a whole ) in relation
to objectives and results of a proposal
or scheme and advice in clear and
timely manner, in order to get the best
time-value of resources
4. Accountability Be self-explanatory and refer to the
applicable rule so that others can refer
to that when in need. Advice/decision
is to be audited/evaluated vis--vis
objectives/results (GFR 26,75)
5. Propriety (correctness concerning
standards of behavior, appropriateness,
Adhere to conventionally accepted
methods (GFR 21)

6. Prudence ( farsightedness) Act with thought for the future