PREFACE

This Manual is a departmental publication and is an updated version of Air Force Local Audit
Manual. The instructions in this manual are supplementary to those contained in Defence Audit Code,
Office Manuals, Financial and other Regulations for the Army and Air Force, IAP 1501, scales of ASC
supplies, various Departmental Regulations and standing orders etc.

2. With the scope and concept of internal audit and internal controls undergoing a change, it has
been ensured that the manual covers the concept of Risk based internal audit & conforms to the Internal
Control & Risk Management (ICRM) framework proposed by the Government of India. Though every
attempt has been made to make this manual as exhaustive as possible, it may need updation/modification
in the light of actual experience gained and Government orders issued from time to time.

3. In the era of Information Technology manual system are becoming redundant. We as a department
are alive to this change and to the growing need of information system audit. Special care has been
taken to incorporate guidelines for conducting audit in an automated environment. I hope that all officers
and staff will make themselves fully conversant with the content of this manual and utilize it gainfully.

4. The Principal Controller of Defence Accounts (Air Force) will be responsible for keeping the
manual up to date.

(Arunava Dutt)
Controller General of Defence Accounts
New Delhi
Dated : 03-01-2013

i
ii
 TABLE OF CONTENTS
CHAPTER PARA Pages
INTERNAL AUDIT - Frame Work & Scope 01
I Principles and objects of Local Audit Organization
and various other duties and functioning of Local
Audit Officers and their Staff 1 - 43 05
II Analysis of vouchers 44-52 39
III "Casting"," Linking", "Pairing" and "Scheduling" 53-82 43
IV Audit of Equipment Accounts 83-176 52
V Audit of M.T. Accounts 177-194 107
VI Audit of Aviation Accounts 195-206 121
VII Photo Accounts 207-223-A 130
VIII Armament Accounts 224-236 136
IX Medical Accounts 237-243 140
X Ration Accounts 244-262 144
XI Hospital Accounts 263-284 154
XII Library and Laboratory Accounts 285-298 165
XIII Meteorological Accounts 299-307 170
XIV Mechanical Transport Repair and Inspection Section 308-316 174
XV Work Shop Accounts 317-334 178
XVI Check of Railway Warrants, Credit Notes, Air
Passage Warrant and Concession vouchers 335-352 187
XVII Instruction for the check of Amenities, Comforts,
entertainment/service, Funds A/cs 353-357 194
XVIII Miscellaneous Documents and Register to be checked
in Local Audit 358-385-D 196
XIX Audit of Misc allowances, payment of which has been
recorded on Local allowance Record Card, IAF-1547 386-408 215
XX Audit of NCC Units 409-414 227
XXI Audit of Accounts of Defence Departmental Canteen 415-419 232

iii
 TABLE OF CONTENTS

APPENDICES Pages
I Percentage of Audit 233
II Objection Statement 237
III Programme of Work of Local Audit 246
IV Selection of Vouchers for linking, Audit etc 248
V Quarterly Progress Report (Part I & II) 253
VI List of Accounts, Subsidiary Accounts and Ancillary Records
maintained by IAF Units and Formations, which are to be
audited or see in course of audit 254
VII ANNEXURE I : Lists of Reports and Return due from
LAOs to Main Office 269
ANNEXURE II : List of Registers etc., be maintained in
Local Audit Officers 271
ANNEXURE III Books of Regulations to be kept by LAOs 272
VIII Analysis of Vouchers 273
IX Statement of losses and over-issues etc. of cash and stores for
publication in the Appropriation Accounts of the Defence
Services 277
X Audit of simplified equipment accounts in Emergency or War 285
XI Register showing claims on account of verification of
qualifying service after 25 years service or 5 years before
retirement rule 32 c.c.s (pension) rules 292
XII Progress report on implementation of simplified procedure
for sanction of pension in respect of defence civilians 295
XIII AUDOLS Manual Part I (IMMOLS) 296
XIV AUDOLS Manual Part II (EQUOLS) 366

iv
 INTERN AL AUDIT
INTERNAL -FRAMEW
UDIT-FRAMEW ORK
-FRAMEWORK

The Defence Accounts Department (DAD) carries out internal audit of the expenditure relating
to Army, Navy, Air Force, Ordnance Factories, Border Roads Organisation, Coast Guard, CSD,
and DRDO. This function is exercised by the DAD on behalf of the Secretary (Defence Finance)
who functions in the dual capacity of principal representative of Ministry of Finance in the field of
Defence Expenditure and as the Chief Accounting Officer for the Defence Services.

The Statutory Audit of the accounts and financial transactions of Defence Services is carried
out on behalf of the Comptroller & Auditor General (C&AG) of India by the Director General of
Audit, Defence Services through officers under him. The Statutory Audit is only a test audit
conducted by these officers to such extent and in such manner as may be directed by the C&AG.

Internal audit is conducted in accordance with the rules laid down in the Defence Audit
Code, Financial Regulations including cannons of financial propriety, General Financial Rules,
etc. and other orders issued by the Government from time to time.

Internal Audit for Air Force units is carried out primarily by the Principal Controller of Defence
Accounts (AF) and Controller of Defence Accounts (AF) through a net work of 47 Local Audit
Officers (LAOs)/ALAOs working under them. Internal Audit broadly covers -
(a) audit of Store accounts.
(b) audit and scrutiny of sanctions and orders,
(c) audit of sanctions to expenditure,
(d) audit against propriety,
(e) audit of local allowances & Non effective claims.

INTERN AL AUDIT - DEFINITION

INTERNAL

Paragraph 3.1 of the Preface to the Standards on Internal Audit, issued by the Institute of
Chartered Accountants of India defines internal audit as follows:

"Internal audit is an independent management function, which involves a continuous

and critical appraisal of the functioning of an entity with a view to suggest improvements thereto
and add value to and strengthen the overall governance mechanism of the entity, including the
entity's risk management and internal control system."

In this sense, internal audit is an overarching control over all other controls. It seeks to find
out whether all other controls are satisfactorily working in practice by subjecting them to compliance
tests. Where the compliance is either weak or absent, the internal audit conducts substantive checks
in order to evaluate the impact of the non-compliance. Thus, it provides the management with a
periodical assessment of the functioning of internal controls within the organization and recommends
measures for strengthening them. Traditionally, internal audit was seen more as an inspection
mechanism concerned with identifying and reporting compliance with rules and procedures. While

1
this objective remains relevant even today, internal auditors are now looked upon more as assurance
providers to endorse soundness of processes within the organization. While the establishment and
monitoring of the internal controls is the primary responsibility of the management, internal audit
or supplements by providing an independent and objective assessment on their adequacy and offer
suggestions for improvement. The purpose of internal audit is to evaluate effectiveness of
management control systems and procedures and to assess whether public resources are managed
in conformity with the laid down systems, principles and practices of public financial control.
Thus, internal audit is a key element of good governance.
As part of internal controls the managers are expected to plan, implement, supervise, and
monitor the internal controls. Therefore, it is equally important that the management assesses relative
risks of different operations and institutes necessary internal controls such as supervisory checks
on maintenance of cash book, regular bank reconciliation, etc. It should also document the internal
controls in clear and unambiguous terms in procedural manuals so that everybody knows what is
expected.
While internal auditors are a part of overall internal control system, they are not responsible
for implementing specific control procedures. The auditors' role is to audit organization's internal
control policies, practices and procedures to assure that controls are adequate to achieve
organization's mission. It is the responsibility of managers to establish an effective internal control
environment in their organization. This is part of their stewardship responsibility over the use of
government resources. In other words, they set the tone through their actions, policies, and
communications which result in a culture of either positive or lax Governance.
While as a principle internal audit should not be involved in any management functions, its
services could be utilized in the following:
„ participating in committees in an advisory (non-decision making) capacity;
„ providing advice on internal controls; and
„ Answering technical questions; and providing training.
The primary function of audit is to verify the accuracy and completeness of accounts to
secure that all receipts are brought to account under the proper head, that all receipts are brought to
account under the proper head, that all expenditure and disbursements are authorized, vouched and
correctly classified and that the final account represents a complete and true statement of the financial
transactions it purports to exhibit.
As per Defence Audit Code1, in the discharge of Audit Duties the clear distinction between
Auditorial and Administrative Functions should always be borne in mind. It is a function of the
Government to make Financial Rules and Orders for the Defence Services, and of the Officers of
the Defence Services and the Defence Accounts Department responsible for making payments, to
apply these rules and orders. It is the function of audit to verify that these rules and orders are
properly applied. It is not the function of audit to prescribe what such rules and orders shall be or
to interfere with their administrative application2.
1
. Manual issued by Defence Accounts Department
2
. Defence Audit Code ( Para-10)

2
 For being effective, internal audit set up should be manned by trained and competent staff
and supervisory officers. Secondly, its independence must be ensured through proper reporting
arrangements and a clear mandate. Lastly and most importantly, the effectiveness of internal audit
would ultimately depend upon the importance that the organization attaches to its reports, which is
reflected in the action taken. Related to internal controls and internal audit are the concepts of
compliance and substantive testing.

The internal audit charter is a formal document that establishes the nature, role and functioning
of the internal audit in the organization. It sets out the Internal Audit's mandate. The Institute of
Internal Auditors suggests:

The charter of the internal audit activity is a formal written document that defines the
internal audit's purpose, authority and responsibility. The charter should (a) establish the internal
audit's position; (b) authorize access to records, personnel and physical properties relevant to
the performance of engagements; (c) define the scope of internal audit activities. The mission of
the internal audit function is to provide independent assurance that internal controls are
functioning effectively so that the organization (government department) achieves its objectives
and in doing so it also complies with all applicable laws.

Audit by the Defence Accounts Department is conducted with reference to the rules laid
down in Defence Audit Code, Financial and other Regulations for the Defence Services and other
orders issued by Government and other competent financial authorities from time to time. The
standards of financial propriety enunciated in Para-39 of Defence Audit Code are the basic rules
on which all audit is conducted as regards propriety of expenditure. In the course of scrutiny of
accounts and transactions of the Defence Services, audit is entitled to make relevant queries and
observations and to call for such vouchers, statements, returns and explanation in relation to them
as it may consider necessary in the interest of proper discharge of its duties. All queries and
observations should be couched in language which is courteous and impersonal. In auditing Defence
Services Accounts, audit should not make independent enquiries from the personnel of the Defence
Services, etc. as such action would amount to an encroachment on the functions of the administrative
authorities. Audit should confine itself to calling upon the administrative authorities to furnish any
information that may be required and, in cases of difficulty; it should confer with these authorities
to the best means of obtaining the evidence which it requires3. In order to ensure effective functioning
of the internal audit, it is absolutely important that it has unfettered access to all documents, records,
books of accounts, computer systems, files, etc. as necessary for the performance of the audit;
cooperation from all the key personnel and the staff of the Department in providing the required
information and explanations within the reasonable time; It is also important that the Internal
Audit is independent from the departments that it audits.

The Air Force Internal Audit Manual for LAOs(AF) has been prepared and updated keeping
in view the above definition and framework of the Internal Audit being adopted by the Defence
Accounts Department.

3
. Defence Audit Code ( Para-10)

3
 CHAPTER -I

PRINCIPLES AND OBJECTS OF LOCAL AUDIT ORGANISATION AND

DUTIES AND FUNCTIONS OF LOCAL AUDIT OFFICERS AND THEIR STAFF

Topics Para
Introductory 1
Classification of Air Force Units and Formations
for purpose of equipment Accounting 2
Responsibility of Units and Formations for the preparation of Accounts 3
Internal Checks of Accounts by Accountant Officers 4
Internal Check by the Defence Accounts Department 5
Agencies by which Local Audit is conducted 6-7
General Rules for the Conduct of Local Audit 8
Scope of Local Audit 9-10
Duties and Responsibilities of LAOs, AF 11
Review of Orders and Sanctions 12-13
Duties of Groups Superintendent Local Audit Staff 14
Discretion vested in LAOs in carrying out Local Audit Duties and Programme of
Local Audit 15
General Audit Procedure 16
Programme of Local Audit 17-18
Notification of visit of O.C the Unit/Formation 19
Local Audit of Unit moving within Indian Limits 20-21
Audit of Units under Disbandment Orders 22
Selection of vouchers for Linking in Audit 23
Audit Enfacement 24
Audit Certificate 25-26
Financial Advice 27-29
Objection Statement 30
Preparation of Summary of Important Objections 31-32
General State of Accounts of Units/Formations 33-37
Quarterly Progress Reports 38
Higher Audit and Performance audit 39
Annual Audit Certificate 40
List of Accounts and Registers to be audited 41
Reports and Returns, Registers and Books of Regulations to be maintained by
the LAO 42

4
INTR ODUCT
INTRODUCT OR
ODUCTOR Y
ORY

1. This Chapter describes briefly the functions of the Air Force Units and Formations in the
Preparation and Maintenance of Equipment Accounts, the General duties and responsibilities
of Local Audit Officer and his staff in regard to the internal checks to be applied to them.
The details of the accounting to be followed by units and formations and the checks to be
applied by Local Audit Staff and described in the subsequent chapters of this manual.

CLASSIFICATION OF AIR FORCE UNITS AND FORMATIONS FOR PURPOSE

OF EQUIPMENT ACCOUNTING

2. For the purpose of Equipment Accounting, the Air Force units and formations may be classified
into the following two categories;-
(i) Maintenance units for I.A.F, i.e. various Equipment Depots (EDS), Air Storage Parks(ASPs)
(ii) Consuming units which comprise of all other units and formations of Air Force (including
the units sections of the Maintenance units ). Some of the consuming units falling under
category (ii) are either non-self-accounting for equipment or are semi-self-containing. When
a unit is not self-accounting, the appropriate self-accounting unit to which it is affiliated for
equipment accounting is notified by Air Headquarters, New Delhi.
NOTE:- A list of self-accounting units is given in AFI No. 59/68 as amended from time to time.

RESPONSIBILITY OF UNITS AND FORMATIONS FOR THE PREP

FORMATIONS ARA
PREPARATION
ARATION
OF ACCOUNTS

3. The Maintenance units, Air Force Stations and other self-accounting units are responsible
for the preparation of all accounts and the maintenance of records connected with the receipts
and issue of equipment, viz., tally cards/ stock record card, ledgers and such other records as
may be prescribed for the purpose in the various books of Regulations, I.A.P. 1501 A.F.
Instructions, [Link] and Equipment Accounting Instructions, etc.

INTERN AL CHECKS OF ACCOUNTS BY ACCOUNT

INTERNAL ANT OFFICERS
CCOUNTANT

4. The Accountant Officers who are established at all important Air Force Units and formations
carry out, in addition to their other duties, an internal check on the accounts on behalf of the
executive authorities to ensure that the orders relating to the accounting of Indian Air Force
Equipment, etc., are implemented and that the accounts are accurately maintained.

The main duties to be carried out by the Accountant Officers are:-

(i) Ensuring the completion of the voucher series.
(ii) The speedy clearance and completion of the vouchers.
(iii) Maintenance of Article-in-Use Ledgers.
(iv) The dispatch of blue copies of Form IAFF(Q) 429 to the consignor LAO/Group
Superintendent.

5
 (v) Watching prompt receipt of red copy/CRV and Blue copies of external receipt vouchers
[IAFF(Q) 429] from equipment section through the medium of a register of in-coming
blues, vide A.F.O 788/71. In the case of consignor units, watching the receipt of receipted
Blues from the consignee Accountant Officers.
(vi) Exercising a cent per cent check of postings in the Stock Record Cards/ tally cards maintained
by the Equipment Officer.
(vii) Ensuring that M.T. accounting records are correctly maintained.
(viii) Ensuring that all objections are promptly investigated and action taken for their settlement.

INTERN AL AUDIT CHECK BY THE DEFENCE ACCOUNTS DEP

INTERNAL AR
DEPAR TMENT
ARTMENT

5. The Equipment Accounts maintained by all Air Force units and formations are subjected to
detailed check by the Defence Accounts Department to the prescribed extent. This internal
check is distinct from the statutory audit of these accounts and records conducted by the
representatives of Director of Audit, Defence Services.

AGENCIES BY WHICH L OCAL AUDIT IS CONDUCTED

LOCAL

6. The audit of equipment Accounts of the Air Force Units and Formations is to be conducted
locally by the Local Audit Officers (Air Force) assisted by the requisite staff of Section
Officer(A/Cs) auditor and clerks. For this purpose definite local audit areas showing the
particular units and formations located in each area are allocated to their charge. The
redistribution of local audit areas, whenever necessary, is notified by the Controller of Defence
Accounts, Air Force from time to time through the medium of Part I, Officer Orders.

7. Under existing arrangement, a resident Local Audit Officer is attached to each Equipment
Depot ; in regard to other units and formation, Regional Local Audit Officers are stationed at
convenient centres

Where the volume of work justifies it, a stationary Group Superintendent responsible to the
respective area Local Audit Officer is established at important self-accounting unit/formations.

The units with which no stationary local audit staff is attached are visited by the [Link] with
necessary staff for conducting audit periodically viz half yearly) as directed by the C.D.A
(AF).

GENERAL R ULES FOR THE CONDUCT OF L

RULES OCAL AUDIT
LOCAL

Audit is generally based on a test check of some transactions. A hundred percent audit check is not
only highly expensive but also unwarranted as the objective of audit (which is assurance about
operation of internal controls and effective compliance with laws, rules, etc.) could be well achieved
by a test check. The question is - what is the criterion used for selecting the areas of audit and
transactions. One important criterion in prioritizing the audit focus is based on risk. Risk is nothing
but the exposure to the chance of failure or loss. It is related to the probability that an event or

6
action will occur which would adversely affect the organization. In analyzing risks, following
questions should be asked:
„ What can go wrong?
„ What is the probability of it going wrong?
„ What are the consequences?
It is thus important to identify and analyze the risks associated with the audited organization.
The risk of misstatement or error is not uniformly distributed across all areas or transactions. In
other words, some areas or transactions tend to be more prone to errors or misstatements. Sometimes,
a risk is inherent in the given circumstances. Although higher value transactions are not necessarily
more risky, being fewer it would be wiser to check as many of them as possible. It is likely that in
some auditees the controls are generally weak posing a risk. It is seen that the control environment
in bodies that operate outside the Treasury control (such as the societies and corporations) is generally
not as rigorous. Poor control environment poses a high risk of error and misstatement in accounts.
Past audit reports would provide a good guide to control environment of an organization. Auditors
should invariably consult the past audit reports and other material in the planning phase to determine
the state of controls.

After identification of the risk factors that operate in the organization/ program, it is important
to assess their materiality judged on the intensity of risks and their possible impact. Assessing the
intensity can be done on a scale consisting of high, medium and low risks. The effect of these risks
on performance also needs to be assessed. The existence, intensity and impact of the risks would
need to be considered in tandem while prioritizing audit focus.

8 A. Detailed instructions for the local audit of Equipment Accounts maintained by Air Force
units and formations are given in chapters II to XX of this manual. The following principles
apply, in general, to the local audit of store accounts. It should be seen that:-
1) the accounting procedure followed by units and formations does not differ from that
prescribed by rules:-
2) all receipts and issues have been duly accounted for in the Stock Record Cards/Tally Cards
etc.;
3) The prescribed checks are exercised by the Equipment Accounts Section on postings in the
Stock Record Cards/Tally Cards and on other subsidiary accounting documents maintained
by the units ;
4) The stores issued for consumption or use do not exceed the scale authorized in Government
orders'
5) The stock-taking has been carried out to the prescribed extent and action taken to adjust
discrepancies revealed therein ;
6) the balance of stores do not exceed the authorized limits and that suitable action is taken for
the disposal of surplus and obsolete stores.

7
 7) all losses and damages are dealt with under the orders of the competent financial authority
in accordance with Financial Regulations and other orders issued by competent authorities.

SCOPE OF L OCAL AUDIT

LOCAL

9. The audit of numerical Equipment Accounts will in general be carried out to the extent
prescribed by the C.G.D.A from time to time. The normal extent of local audit of Equipment
Accounts of IAF Units and Formations during peace time is shown in Appendix I.

10 The restriction of local audit to the extent shown in Appendix I will be dependent on the fact
that Equipment Accounts have been kept reasonably well in the past and have been free from
serious or numerous audit objections. If, during recent previous visits to a formation (or
during the current visit), difficulty have been (or is) experienced in obtaining full and free
access to any essential accounts or record, or in obtaining any important explanation or if
during the course of test check, the LAO(A.F.) ( or Group Superintendent Local Audit, Air
Force in his absence) feels that he is seriously " put upon enquiry' he should extend the scope
of audit, using his discretion and judgement as to how this should be done and to what
extent. In all such cases the L.A.O. (A.F) should report the facts specifically to the PCDA/
CDA(AF) and record his reasons for enhancing the extent of audit.

DUTIES AND RESPONSIBILITIES OF LA

LAOO (A.F.)
(A.F.)

11. (i) The responsibility of the LAO (A.F) is inseparable from that of his staff, final responsibility
for the efficient conduct of Local Audit, therefore, rests always with L.A.O. (A.F.) In addition
to the specific duties laid upon him, the L.A.O. (A.F.) is expected to conduct a general and
intelligent review of the audit work of his staff and to apply surprise test checks periodically.
The L.A.O (AF) will in all cases investigate the reasons for the non-linking of vouchers
selected for test linking by the Local Audit staff. He must ensure that the non-linking of
vouchers is not due to a defect in the accounting system of the unit.
NOTE:- Appendix I to this Office Manual, Part I, lays down the duties of the Accounts Officer/
ACDA Incharge Sections and Superintendent of Sections. Unless otherwise stated, this appendix
applies equality to LAOs and Superintendent of Local Audit Groups.

(ii) During his periodical visits, the LAO (AF) will, by personal inspection and supervision,
satisfy himself that the Group Superintendents are carrying out their duties efficiently. He
will examine the draft object statements and see that they are correct and properly worded
and will verify by test check that the corrections made in the accounts as a result of the
objections raised have been properly carried out. He will take up all outstanding objections
and points of a controversial nature which have been held over for his scrutiny and orders,
and proceed with their settlement in personal consultation with the Officer Commanding
the unit or other officers concerned, where necessary. He will see that the settlement of
objections more than three months old is not delayed by units and will, where necessary,
report to Command Headquarters or other higher authorities with a view to obtaining their
assistance in settlement thereof. Where he finds that there are no prospects of objections

8
 being settled, he will report the matter to the C.D.A. (AF). For detailed instructions see
Appendix II to this manual.

REVIEW OF ORDERS AND SANCTIONS

12. Local Audit Officers will examine all orders and sanctions affecting their work, issued by the
Government of India and authorities subordinate to them, C.G.D.A's letters and Controller's
Office Orders in order to ensure that they are correctly applied in audit.

NOTE:- In the case of Equipment Accounting Instructions, Cash and Pay Accounting Notes, "K"
Broadcasts, etc, having a bearing on local audit or involving a new accounting procedure,
the L.A.O (A.F) will also ensure that they have had the concurrence of the C.G.D.A before
they are acted upon by units and formations.
For this purpose they will hold monthly conferences ( or at longer intervals) where so
authorized by the Controller of Defence Accounts (Air Force) with their Superintendent and also
assistants readily available at their Headquarters station. All important and doubtful points arising
in the course of local audit will be discussed at these conferences. The results of the conference
will be recorded in a Review Register which will be open to inspection by I.D.A.S Officers/Area
Audit Officers during their periodical visits. All doubtful points connected with the interpretation
or applicability of rules, instructions, etc, will be referred to the Controller of Defence Accounts
(Air Force) for orders. A certificate of review of orders and sanctions will be submitted to the
C.D.A (AF) monthly by LAOs.

In order to ensure that the instructions issued by the [Link] have been correctly followed and
carried out by their staff, a certain number of first issues, etc., will be reviewed by them. The result
of the review of such issues will also be recorded in a separate column of the Review Register.

13. [Link] (AF) should always bear in mind the fact that the detailed instructions given in this
manual represent the general principles of which their audit is to be conducted, [Link] (A.F)
as well as the Group Superintendents are expected to interpret the instructions intelligently.

DUTIES OF GR OUP SUPERINTENDENT L

GROUP OCAL AUDIT ST
LOCAL AFF
STAFF

14. The Group Superintendent Local Audit staff will perform, in the fist instance, all the duties
prescribed for the L.A.O. (A.F) in regard to the local audit of equipment accounts. Original
objection statements, re-audit remarks and correspondence of an important nature will be
dealt with finally by the L.A.O. (AF). Re-audit remarks in respect of objections settled at
unit level after necessary verification will, however, is issued by the Group Superintendent.
Except when the L.A.O is present, the Group Superintendent will discuss all outstanding
questions personally with the O.C. the unit or formation or with the officer deputed by the
latter. In order to facilitate the work of L.A.O. (A.F) he will also discuss and settle normal
objections where possible. He will bring to the notice of L.A.O during his periodical visits
all objections of importance noticed during the course of his duties.

9
 The L.A.O (A.F), however , remain personally responsible for seeing that the accounts which
are audited have all been audited in strict compliance with the prescribed rules and orders on
the subject.

AUDIT DUTIES AND PR OGRAMME OF AUDIT

PROGRAMME :DISCRETION OF [Link]
UDIT:DISCRETION

15. In exercising certain test checks on the work of local audit staff, e.g. a test check of the
verification of credits in Equipment Accounts, etc., [Link] are given discretion in the matter
of the extent to which their check is to be applied but the check exercised should be substantial.

They are expected to carry out such discretionary test checks intelligently and in the spirit of
the orders.

[Link] are ordinarily expected to visit each unit/formation every half year for the review of
local audit work. To enable [Link] to devote more time (i) to financial advice and (ii) to
setting on the spot all local audit objections, they are allowed a certain amount of discretion
in working to a half yearly programme. The exercise of this discretion is subject to the
following conditions :-
(a) if, in order to settle objections on the spot, it is necessary to extent the time originally
allowed for the review of local audit of a particular unit or formation, the [Link] should
report the fact to the C.D.A (AF) for confirmation of his action in extending the time. If,
however, special circumstances connected with a unit make a prolonged stay absolutely
essential, the [Link] should report the circumstances to the Controller of Defence Accounts
(Air Force) in detail by an express letter and obtain his concurrence ( by wire, if necessary).
In such cases, instead of dislocating the whole of his half yearly programme, the [Link]
should miss out the next unit the accounts of which as judged from his previous audit visit,
are in a good state and return to it later on, if possible. He should at the same time address
courteous letter of regret to the unit explaining his non-appearance on the date notified in
the programme.
(b) In stations, where stationary local audit staff is located the L.A.O need not necessarily visit
all such stations or units in them every half year. The elimination of the L.A.O visit to any
unit should depend on his being satisfied (from his personal knowledge or the information
received from his Group Superintendent) that the accounts of the unit are in a good state
and his visit can be safely postponed until the next half year.

GENERAL AUDIT PR OCEDURE

PROCEDURE

16. Accounts will be audited once in a half year which are specifically decided to be as such for
the purpose/ annually in the case of outstation NCC units which involve a special visit for the
purpose). Accounts audited half yearly but not audited within six months following the half
year of audit will be regarded as in arrears. Accounts audit half yearly but not audited within
6 months following the close of half year will be regarded as in arrears. Accounts audited
annually but not audited within 9 months, following the period of annual audit will be regarded
as in arrears.

10
 In the case the Equipment Depots, the following processes of audit checks are completed monthly:-
(a) Scheduling of vouchers (transfer of stores outwards)
(b) Linking of :-
(i) Transfer inwards (receipts)
(ii) Central Purchase Vouchers
(iii) Local Purchase Vouchers
(iv) Overseas receipts
In the case of consuming unit process at (a) only is to be carried out monthly.

PR OGRAMME OF L
PROGRAMME OCAL AUDIT
LOCAL

17. A half yearly programme of local audit, etc, on the proforma given in Appendix III of this
manual showing therein all the units in his area, whose accounts are due for audit will be
drawn by the L.A.O. The programme will provide for the completion within that half year
of the audit due to be carried out in the half year. It will be submitted by the [Link] (AF)/
DCDA (AF) to the PCDA/CDA(AF) for approval so as to reach him by 20th of the penultimate
month preceding the half year. The standard time in man-days as approved and notified by
the C.G.D.A from time to time for each class of unit represents the average period required
for the local audit of the accounts of that unit, and should be adhered to by the L.A.O in
making out programme.

18. The programme will also include the time required for review by the L.A.O(AF) of the
Accounts of AF units and formation audited by the local audit staff.

NOTIFICA
NOTIFICA TION OF VISIT TO O
TIFICATION .C THE UNIT/ FORMA
O.C TION
FORMATION

19. The O.C. the unit/formation will be notified of the local audit visit at least a week before the
date of arrival of the L.A.O(AF) / Local Audit Staff for taking up audit of his unit. A copy of
the intimation so given should be endorsed to the Air Headquarters/ Controlling Command
Headquarters Air Force.

Local Audit should commence with an entry conference, which is a meeting between the key
personnel of the auditee unit (including the head of the office) and the internal auditors to create a
constructive environment for the audit. The scope and flow of activities of the audit are
communicated so that auditee department makes necessary arrangements for effective conduct of
audit. The plan and the methodology of the audit may be discussed for better communication and
support of the auditee. However, audits with an element of surprise do not have any entry
conferences. During the opening conference, auditors should:
„ introduce the team members and explain the scope and methodology of the audit;
„ describe the process of raising the audit queries and their finalization including the time
line for replies to be received from auditee;

11
 „ request for the support (production of records, arrangements for seating the audit team,
prompt response to audit queries, etc.) that is needed from the auditee;
„ identify the information / records that would be needed and the contact points
„ in the auditee's organization; and
„ elicit the concerns, questions and suggestions of the auditee - particularly, the head of office;
The entry conference sets the tone for effective audit by establishing effective communication
lines with the auditee organization. It also helps the internal auditor to validate the information he
had gathered during the planning stage and assess the attitude and perception of the key personnel
towards controls.

LOCAL AUDIT OF UNITS MOVING WITHIN INDIAN LIMITS

MOVING

20. The self-accounting Air force Units are generally static and do not move from one station to
another. In the even of move of a self-accounting unit to another station, all the accounts and
records are taken over by the unit to the new station. The L.A.O/ Group Superintendent from
whose audit area the unit leaves should take the following action in such cases:-
(i) To inform the L.A.O of the area to which the unit moves the period upto and for which the
accounts of the unit were last audited
(ii) To forward all the objections statements and vouchers files connected with that unit to the
other L.A.O
(iii) To forward a list showing accounts and documents maintained by the unit which are subjected
to audit by local audit staff.
Acknowledgement of the documents forwarded will invariably be obtained from the L.A.O
of the area to which the units moves.
21 (a) The mobile unit like Air Force Squadrons/ Flights, etc., which are non-self-accounting and
are affiliated to self accounting units for equipment accounting, however, frequently move
from station to station. At stations, where local audit staff is based and move of such a unit
comes to their knowledge, the following action will be taken by them to ensure that :-
(i) the audit of documents, e.g. Flight Authorisation Book, etc kept buy them is in current
state;
(ii) the vouchers raised in respect of equipment which is to accompany a unit or Sqn. On
transfer are properly auctioned in the Article-in-Use Ledger separately maintained for
such equipment vide para 100-101 Chapter 12 IAF 1501 ; where this is not done, it is
to be ensured that action as laid down in paras 99, 102 et seq thereof is completed by
the parent unit to which the Sqn/Flight was attached prior to its move.
(iii) The outstanding audit objections connected with the accounts which are independently
maintained by the unit are extracted to the L.A.O in whose audit area the units moves;
(iv) The list of independent records kept by the unit is forwarded to the L.A.O / Group
superintendent in which audit area it moves.

12
 (b) At stations, where stationery local audit staff is not based, similar action as indicated in the
case of self-accounting unit (vide para 20) is to be taken by the L.A.O from whose audit
area the Squadron/Flight, etc., moves. The L.A.O/Group superintendent should also ensure
at the time of audit of Air Force Station to which the Squadron/flight was attached that all
vouchers pertaining to unit equipment inventory are properly annotated and actioned in
Article-in-Use Ledger separately maintained for such equipment. Details of attractive and
valuable items issued are also to be extracted to the L.A.O /Group Superintendent in whose
audit area the Squadron/Flight moves for verification at their end.

AUDIT OF UNITS UNDER DISB ANDMENT ORDER

DISBANDMENT

22. The audit of accounts of unit which is under orders of disbandment will be given priority and
specifically provided for in the audit programme before it is finally specifically provided for
in the audit programme before it is finally disbanded and the observations on the accounts
will be settled as far as possible on the spot or in communication with the Command
Headquarters before the personnel move.

SELECTION OF VOUCHERS FOR LINKING IN AUDIT

23. Before the Local Audit Officer proceeds to take up the audit of unit/formation, selection of
vouchers for linking in audit of various accounts is to be made by the L.A.O (AF) personally
keeping in view the various typical methods as laid down by the C.G.D.A ( vide Annexure 1
& 2 to Appendix IV of this manual). The selection orders are to be recorded in so clear terms
as to admit of no ambiguity in their understanding by the local audit staff. If at the time of
commencement of the local audit, the L.A.O (AF) happens to be away from Headquarters
station or in the case of stationary local audit staff at out-stations, he should intimate his
selection of vouchers confidentially by post to the Group superintendent local audit party so
as to reach him a day or two before the audit is to be taken up. The Superintendent should
keep these orders confidentially in his personal custody and not communicate them to any
one until the process of "linking" is actually taken up.

A precise record of the particular vouchers, items or accounts selected and the method adopted
for their selection will be kept to enable any independent authority (like 'Test Audit") to
identify and review every item selected by the Defence Accounts Department.

The method of selection should be arbitrary based on scientific sampling methods, so that
the particular method cannot possibly be pre-supposed by the store keeping staff or by the
local audit staff. Occasionally, the same formula of selection may be adopted in two
consecutive visits (or months)

AUDIT ENFACEMENT
ENFA

24. All accounts and documents, registers and vouchers, etc., which are audited will be enfaced
"Audited" "Linked" "Test Linked ". "Test Checked" "Objected to", "Remarked on" as the
case may be. The L.A.O (AF) Group Superintendent local audit staff and the auditors will

13
 affix their dated initials and designations to each of these accounts in token of having conducted
that part of the examination, audit scrutiny or test check for which they are personally
responsible. All marks and initials must be small and neat, care being taken to avoid the
obliteration of figures and other details entered in the accounts registers and vouchers etc.

Internal Auditor should seek appointment for an exit conference with preferably the head of
the department once the final draft report is ready. A copy of the draft report should be given
to the HoD at least a couple of days in advance so that he and his team have time to study it
and prepare themselves for the meeting. The purpose of exit conference is to give the
department an opportunity to place additional facts, its views, etc. on the audit findings.
Essentially, it is an opportunity for internal auditor to seek confirmation of facts given in the
audit report and the department's views on the audit recommendations. If the exit conference
takes place in right spirit, the audit report becomes an agreed document between the department
and the internal audit. Request for exit conference can be made through a formal letter to the
management enclosing the draft audit report or by personally meeting the HoD.

AUDIT CER TIFICA

CERTIFICA TE
TIFICATE

25. On the completion of Audit, an Audit Certificate in the prescribed form IAF (CDA) 717 will
be appended to the office copy of the objection statement issued on the accounts of each unit
/Formation. In respect of Issue Vouchers, it would not suffice if the relevant entry under col.
I of IAF(CDA) 717 merely refers to "Issue Vouchers". It should specifically cover "all issue
vrs. Due to be audited as per the Vrs analysis". This certificate will be examined by the
Section Officer (Accts) with the list of accounts to be audited and countersigned by him.
Before countersigning the certificate, the Section Officer (Accts) will exercise such checks
over the auditors work as will satisfy him that the audit has been efficiently carried out and
that he can take complete responsibility for the audit done and for the statement made in the
certificate.

FORMAT : AUDIT CER

FORMAT TIFICA
CERTIFICA TE IAF (CD
TIFICATE A) 717
(CDA)
1. Name of the Unit or Formation.
2. Period of Audit
3. Month's accounts selected for full audit (vide Selection order attached)
4. Date of audit
5. Number of mandays authorized
6. Number of mandays taken.
CERTIFIED THAT (i) the following accounts which are required to be audited have been
audited to the extent and in accordance with the instructions laid down in AFLAM and other
orders issued from time to time

14
 Name of register No of Period of A/C Name of Signature of
of accounts volumes detailed Auditor the auditor
Checked
NOTES:-1 2 3 4 5

(i.) If a separate list of registers and A/Cs is attached to the certificate, the necessary remarks to this
effect should be given in the certificate

(ii.) All Documents Vrs etc audited Test Checked or Scrutinized have been enfaced - "Audited", "Objected
to", " Test Checked". "Test Linked" or "Remarked ON" as the case may be, as initiated.

(iii.) Items (including office Notes) outstanding on previous objection statement(s) have been dealt with
and the objection register has been completed up to date. The relative register eg. Register of losses,
have been completed and linked. Vouchers and other documents, etc, have been properly filed.

SECTION OFFICER'S (ACCOUNTS)

DATE SIGNATURE--------------------
LAO'S SIGNATURE -------------------

26. After the audit of the accounts of a unit/formation is completed by the local audit staff, the
LAO (AF) is expected to carry out such discretionary test-checks intelligently and in
accordance with the spirit of the orders as to satisfy himself that the audit of the accounts has
been conducted by the staff efficiently. The work of the audit staff at each level and audit
phase should be properly supervised during the audit, and a senior member of the audit staff
should review documented work. Monitoring quality of audit is an important task of LAO/
ALAO. Key responsibilities of LAO/ALAO include (a) Coordinating staff assignments -
with specific reference to capabilities (b) Monitoring progress (c) Level of understanding of
the audit staff.(d)Review of evidence gathered (i.e., sufficiency, objectivity, relevance and
appropriateness) (e)Review of preliminary risk assessment and (f) change in audit program
and procedures needed in light of audit finding.

FIN ANCIAL AD
FINANCIAL VICE
ADVICE

27. The L.A.O (AF) should maintain personal touché with the [Link] , Chief Equipment Officers
and Accountant Officers and MTO of the Air Force Units and formations. He should point
out to the [Link] instances of obvious waste and extravagance, the avoidance of which may
result in a saving to the State, suggest ways of tightening control and avoidance of errors and
indicate, either personally or by means of special letters, the various directions in which
economies could be effected. To assist him in this, he should study carefully the items of

15
 financial advice circulated by the C.G.D.A from time to time, the reports of Director of Audit,
Defence Services on the appropriation accounts of the Defence Services, the administration
report of the departments concerned and the orders published by local military authorities
etc.

NOTE:- An illustrative list of possible areas for financial advice is given at the end of this chapter,
vide Annexure I.

28. L.A.O (AF) will occasionally carry out an intelligent review of the consumption of stores
issued "on an as required basis" ion units, e.g. conservancy and other A.S.C Stores, such as
quick lime, oil, fuel, cleaning material etc. In the case of stores which are drawn according
to the fixed scales, the L.A.O should see that maximum quantities prescribed in Regulations
are not drawn as a matter of course, e.g. in the case of oil for lighting, although there is a
fixed scale, the maximum quantities are not always required to the absence of men. Please
see para 39 below.

Items of financial advice, will not be included in the objections statements. After they have
been discussed with the unit authorities and which are accepted by them should be reported
to the CDA (AF) in the quarterly financial advice report so as to reach him by the 10th of the
month following the quarter.

29. Any case in which the L.A.O feel that suggestions (in the nature of financial advice) made by
them were not implemented due to the unhelpful or unco-operative attitude of the local
administrative authorities, or their disinclination to take up the matter with the authorities
concerned at higher level should be reported to the Controller of Defence Accounts (Air
Force) confidentially. While reporting case of this nature, [Link] (AF) will ensure that self-
contained report giving full particulars of the advice rendered as well as the views of the
administrative authorities is furnished to facilitate further action, if considered appropriate.

RAISING/ PURSUIT OF OBJECTIONS

30 (a) The detailed instructions contained in Appendix II to this manual will be observed
scrupulously with regard to the raising of objections, maintenance of Audit Progress Register
etc.
(b) The Audit Progress Register will be reviewed monthly by the LAO. In the case of unit/
formation located at the Headquarters of the LAO/ALAO, a continuous watch should be
kept on the position of outstanding objections, and replies to the objection statement dealt
with, as and when they are received. In the case of outstation units, sufficiently in
advance, requesting the unit to keep the replies to the outstanding items ready, to facilitate
verification at the time of audit. In the case of local as well as outstation units, particular
attention will be paid to objections pending at the unit level. Effective steps will be taken to
ensure that the replies are not delayed, and prompt action is taken by the unit for regularization
etc, wherever necessary.
(c) Before taking up current audit of units/ formation, the local audit staff will peruse the
replies received from the unit authorities to the objections/ observations relating to the

16
 previous half year and ensure during the course of audit that the defect/omission pointed
out earlier, stated to have been rectified/ adjusted have actually been rectified/ adjusted to
the satisfaction of audit. If not, it will be ensured that necessary action is taken during the
period covered by the current audit. The LAO at the time of review of the accounts will
also discuss the outstanding objections/observations with the unit authorities with reference
to the list of objections/observations which warrants discussion as already sent in advance
to the unit/formation concerned vide (b) above.

PREPARA
PREPARATION OF SUMMAR
ARATION Y OF IMPOR
SUMMARY IMPORTTANT OBJECTIONS

31. Simultaneously with the issue of objection statement to the unit concerned, copies of the
important irregularities contained in the objection statement which merit the attention of
higher authorities together with their summary will be forwarded to appropriate Command
Headquarters in duplicate with copies endorsed to the O.C unit and the PCDA/CDA(AF).

NOTE:- These reports should not contain unimportant and trivial items of routine nature, e.g. stray
cases of non-credit of stores, non-production of some documents, over issues of nominal
value, non-recurring over-drawls of rations, minor objection regarding use of MT and
completion of form 'T' 901 etc. as inclusion of such items detract from the value of these
reports. Reports on important irregularities are required to be more qualitative than
quantitative. L.A.O should vet the reports carefully to ensure that the same are self-contained
and include only such items which are very serious or persistent or which merit inclusion in
the Major financial and accounting irregularities report. NIL reports are not required to be
rendered.

32. The LAO(AF) will immediately bring to the personal notice of the Controller of Defence
Accounts (Air Force) by a special report, all cases in which :-
(i) the prescribed accounts are non-existent or missing or have not been produced for audit;
(ii) the accounts maintained by a unit area in an unsatisfactory state;
(iii) the procedure adopted in maintaining the accounts is not in conformity with that authorized
in rules or standing orders.
(iv) Objections of important nature or involving important financial irregularity such as cash
transaction not credited fictitious quantities charged off.

GENERAL STATE OF ACCOUNTS OF UNITS/FORMA

STA TIONS
UNITS/FORMATIONS

33. The LAO (AF) will decide finally whether the State of Accounts of a particular unit is to be
declared as satisfactory or unsatisfactory as a whole or in part based on detailed risk assessment
as per Para-8 of this Manual. The objection statement issued to the unit will contain a clear
indication whether the accounts are satisfactory or unsatisfactory and what is the level of risk
that is identifiable from the objection statement. I the part of the accounts, say M.T. accounts,
is unsatisfactory this should be clearly brought out in the objection statement along with the
associated risk indicator. Wherever the accounts (part of whole) are declared as unsatisfactory,

17
 a narrative form, where possible) with the relevant serial Nos. of the items of objection
statement duly quoted in each case, will be rendered by [Link] to Command Headquarters
(or Air Headquarters if the unit concerned is directly under their administrative control ). A
copy of such report should also be endorsed to the C.D.A (AF) together with extracts of
objections to enable the PCDA/CDA(AF) to decide whether any particular irregularity included
in such report merits inclusion in the quarterly report on the Major financial and accounting
irregularities.

34. [Link] (AF) should exercise great caution in assessing the state of accounts and the risk
factors, and in doing so, they should keep in view the nature of irregularities, the No. of items
r quantities involved, the financial effect and whether the irregularity is persisting despite
advice by the LAO.

NOTE:- As the accounts of the Defence services are, barring a few exceptions subjected only to a
percentage audit, and in some case confined to looking for certificates endorsed by the
executive on the accounts, the specifications in the write up of the point at which failure has
occurred in the observance of the rules or the authorized procedure becomes important for -
(a) Taking disciplinary action against the individual at fault, or
(b) Improving the process by :
(i) Mechanisation;
(ii) Increase in the scope of internal audit;
(iii) ensuring through an internal executive agency greater accuracy.
35. All irregularities coming to light in the course of percentage audit and/ or processes of check
over selected items and cases of wrong certification by executive should be viewed as very
serious. Apart from cases of financial irregularities coming to the notice through audit
processes and returns from the administrative authorities, special attention should be paid to
the following items which can be classified as High Risk Areas;
(i) Utilization of plant and machinery for the purpose for which it was purchased and installed.
(ii) Identification of slow-moving and non-moving items of stores in depots/store holding
formations.
(iii) Deterioration in the condition of stores due to unduly long/inadequate storage.
(iv) Defective planning and implementation of projects involving significant investment
highlighting, in particular major deviations from original time and cost targets.
36. The following types of irregularities with High Risk incidence will be included in the report
on Major financial and accounting irregularities:
(i) Cases involving irregular maintenance or non-maintenance of accounts which, in the personal
opinion of the CDA have serious implications.
(ii) Cases in which the value of the financial irregularity or loss involved is Rs 1 lakh or more
in each case.

18
NOTE:- Besides cases which disclose loopholes for fraud, defalcation etc., such as Cash Losses
regardless of financial limit referred to above may also be included at the discretion of the
Controller.
(i) Cases of serious irregularities which cannot be translated into financial terms, but which, in
the personal opinion of the Controller, should be brought to the notice of Army Commanders
/ Air HQrs /Naval HQrs., DGOS ( in the case of Factories ) and administrative heads of
Departments/ Organisation (in other cases).
To facilitate featuring the above types of items in the Major financial and accounting
irregularities, LAOs will render quarterly reports covering cases involving irregular maintenance
or non-maintenance of accounts and serious irregularities which cannot be translated into financial
terms which in the opinion of the LAO should be brought to the notice of the Air HQrs by the
CDA. In addition, the full details of such cases should be furnished to the main office separately
as and when arising in his area of audit. LAOs will conduct intelligent checks with a view to bring
to light such irregularities which are not generally likely to be detected in the course of routine
audit by their staff paying special attention to the points mentioned in the preceding para.

37. As delay in the inclusion of an irregularity in the report on the Major financial and accounting
irregularities ,almost defeats the object of these report, it is of primary importance to ensure
that cases of financial irregularities noticed during a quarter are reported promptly either in
the same or in the month following that to which the report on the Major financial and
accounting irregularities relates. It may happen that certain irregularities are not serious
enough to merit inclusion in the Major financial and accounting irregularities report, but
otherwise call for early action by Air Headquarters. Such cases will be reported by him to the
PCDA/CDA(AF) Separately.

QUAR TERL
ARTERL Y PR
TERLY OGRESS REPOR
PROGRESS TS
REPORTS

38. The LAO(AF) will submit to the PCDA/CDA(AF) a quarterly report showing the progress of
audit on the proforma given in Appendix V to this Manual.

HIGHER AUDIT & PERFORMANCE AUDIT

39. During the course of internal audit, it is necessary that LAOs devote special attention to
higher audit and performance audit, Information system audit and detection of suspected
frauds etc., in addition to the normal audit which can be called "regularity Audit". Although
internal audit is mainly concerned with verifying whether internal controls are functioning
effectively in actual operation, it will be useful for the internal auditors to be familiar with
various types of audit that are generally carried out by auditors. Some of these audits such as
regularity audit and propriety audit would come within the ambit of internal audit. While
internal auditors can be called upon to review the financial statements prepared by the
organization before they are passed on to external (statutory) auditors, they would not be
expected to conduct financial audit. It would be useful for internal auditors (at least a few
among them) to be conversant with the double entry accrual based accounting and the financial
statements prepared under it.
19
Re gularity Audit (A udit a
(Audit aggainst R ules and Or
Rules der
Order s)
ders)

Audit against regularity consists in verifying that the expenditure conforms to the relevant provisions
of the Constitution and of the laws and rules made there under and is also in accordance with the
financial rules, regulations and orders issued by a competent authority either in pursuance of any
provisions of the Constitution or by virtue of powers formally delegated to it by a higher authority.
The rules, regulations and orders against which audit is conducted mainly fall under the following
categories:
„ Rules and orders regulating the powers to incur and sanction expenditure as well as delegation
of powers to incur and sanction expenditure from the Consolidated Fund and Contingency
Fund of India.
„ Rules and orders dealing with the mode of presentation of claims against Government,
withdrawing moneys from the Consolidated Funds, Contingency Funds and Public Accounts
and in general the financial rules prescribing the detailed procedure to be followed by
government servants in dealing with government transactions; and
„ Rules and orders regulating the conditions of service and pay and allowances and pensions
of Government servants.
Audit against rules and orders would obviously involve interpretation of the rules / orders.
Auditors' duty stops with bringing to the notice of the competent authority any action that is, in
their opinion, contrary to the rules /orders on the subject. It is for the authority which is vested with
the power to make rules to take a view in the matter and decide on the further course of action.

Pr opriety Audit
Propriety

It is an essential and inherent function of Audit to bring to light not only clear and obvious
irregularities but also every matter which, in the judgment of auditors, appears to involve improper
expenditure or waste of public monies or stores even though the accounts themselves may be in
order and no obvious irregularity has been committed. Such audit, often called Propriety Audit,
"extends beyond the formality of the expenditure to its wisdom, faithfulness and economy". It is
thus not sufficient to see that sundry rules or orders of a competent authority have been observed.
It is of equal importance to see that the broad principles of orthodox finance are borne in mind not
only by disbursing officers but also by sanctioning authorities. No precise rules can be laid down
for regulating the course of audit against propriety. Every officer incurring or authorizing expenditure
from public moneys should be guided by high standards financial propriety. Every officer should
also enforce financial order and strict economy at every step and see that all relevant financial
Rules and Regulations are observed by his own office and by subordinate disbursing officers.
Audit officers in the performance of their duties should ensure application of the following principles.

a) Every officer is expected to exercise the same vigilance in respect of expenditure incurred
from public moneys as a person of ordinary prudence would exercise in respect of expenditure
of his own money.

b) The expenditure should not be prima facie more than the occasion demands.

20
c) No authority should exercise its powers of sanctioning expenditure to pass an order which
will be directly or indirectly to its own advantage.

d) Expenditure from public moneys should not be incurred for the benefit of a particular
person or section of the people, unless :-
„ A claim for the amount could be enforced in a Court of Law, or
„ The expenditure is in pursuance of a recognized policy or custom.
„ The amount of allowances, granted to meet expenditure of a particular type, should be so
regulated that the allowances are not on the whole a source of profit to the recipients.
e) The responsibility and accountability of every authority delegated with financial powers to
procure any item or services on Government account is total and indivisible. Government
expects that the authority concerned will have the public interest uppermost in its mind while
making a procurement decision. This responsibility is not discharged merely by the selection
of the cheapest offer but must conform to the following yardsticks of financial propriety;
„ Whether the offers have been invited in accordance with governing rules and after following
a fair and reasonable procedure in the prevailing circumstances.
„ Whether the authority is satisfied that the selected offer will adequately meet the requirement
for which it is being procured.
„ Whether the price on offer is reasonable and consistent with the quality required.
„ Above all, whether the offer being accepted is the most appropriate on taking all relevant
factors into account and in keeping with the standards of financial propriety.
f) Whenever called for, the concerned authority must place on record in precise terms, the
considerations which weighed with it while taking the procurement decision.

g) The proper discharge of duties by an Audit Officer in this field is a very delicate matter and
requires much discretion and tact. A challenge against expenditure should not be expressed
as based on the above principles of financial propriety but as transgressing a universally
accepted standard of official conduct or financial administration.

When the internal auditor considers that any rule or order has infringed any one of the canons of
financial propriety, he should convey his opinion to the administrative authority concerned for
such action as that authority may think fit to take and request it to intimate, in due course, the
action taken by it. Thereafter, if he considers it necessary, he may report to the next higher authority.

4
. Defence Audit Code lays down the extent to which the various classes of bills and accounts will be audited. The
quantum of audit, may, however, be suitably increased under the personal orders of the Controller of Defence Accounts
to the extent he may order at his discretion where the state of accounts is unsatisfactory and warrants more detailed
audit. The extent, of audit in respect of store and Public fund accounts is prescribed in the Army Local Audit Manual
Parts I (Volume I, II & III) and II, NLAO's Manual and Air Force Local Audit Manual. The extent of audit in respect
of MES accounts is prescribed in the MES. Accounts Manual and the MES Local Audit Manual.

21
Audit of Expenditur
Expendituree

The audit of all expenditure debitable to Defence Services Estimates is conducted by the
Controllers of Defence Accounts either centrally in their own offices or locally through the agency
of the Local Audit Officers. The detailed instructions with regard to the Local Audit and inspection
of store and Public fund accounts, etc. by the Local Audit Officers are contained in the Air Force
Local Audit Manual. The main objects of audit of expenditure are to ensure -
„ That there is provision of funds for the expenditure duly authorized by competent authority;
„ That the expenditure is in accordance with a sanction properly accorded and is incurred by
an officer competent to incur it;
„ That the claims are made in accordance with rules and in proper form;
„ That all prescribed preliminaries to expenditure are observed such as proper estimates framed
and approved by competent authority for works expenditure, a health certificate obtained,
where necessary before disbursement of pay to a government servant etc.
„ That the expenditure sanctioned for a limited period is not admitted in audit beyond that
period without further sanction;
„ That payment is made to the proper person and that it is so acknowledged and recorded that
a second claim against Government on the same account is impossible.
„ That the charge is correctly classified and that if a charge is debitable to the personal
account of a contractor, employee or other individual or is recoverable from him under
any rule or order, it is recorded as such in a prescribed account and the recovery is watched;
„ In cases of purchase of stores, that they have been accounted for the prescribed store accounts
and that the rates are the same as contracted for or are certified as correct by proper
authority;
„ In respect of bills of contractors of the Military Engineer Services, that the terms of the
contract or other agreement have been adhered to;
„ That rates entered in the bills for transport for the movement of troops and stores, when
such transport is not provided for by the Army Services Corps, agree with the contract or
tariff rates and that the warrants, credit notes or passage orders have been signed by the
officer authorized to sign them, and that they have been properly issued under the rules,
and
„ That the expenditure does not involve a breach of any of the standards of financial propriety.

Recurring charges which are payable on the fulfillment of certain conditions or until the occurrence
of a certain event should be admitted in audit on receipt of a certificate from the officer concerned
to the effect that the necessary conditions have been duly fulfilled or the event has not yet occurred,
as the case may be. Whilst it is desirable that auditors and others employed on audit duties should
not be at liberty to make any relaxations in audit or their own motion, it is of considerable importance
that the prescribed checks should be observed in spirit and not in the letter as opposed to the spirit.

22
Perf or
erfor mance (V
ormance alue ffor
(Value or Mone y) Audit
Money)

Efficiency-cum-Performance Audit (ECPA) or Value for Money (VFM) audit is a comprehensive

review of the projects, programmes, schemes, organizations, etc. in terms of their goals and
objectives aimed at ascertaining the extent to which the expected results have been achieved from
the use of available resources of money, men and materials. It is a technique of audit adopted to
assess and evaluate the economy, efficiency and effectiveness of development schemes, projects
or organizations and hence this branch of audit is also known as Economy, Efficiency and
Effectiveness Audit or the Three 'E's Audit. Economy relates to incurring expenditure which is
keeping with the requirement, while efficiency means that the output is commensurate with the
input. For any expenditure to be considered effective, it should have resulted in achievement of the
intended objective.

Regularity Audit ensures that for every expenditure there is a voucher and that the expenditure
is according to certain laws and rules and other instructions that have been laid down. "Higher
Audit" or "Propriety Audit" relates either to individual or class or transactions is concerned with
an intelligent examination whether lesser expenditure would have served the purpose. Cannons of
financial propriety in Govt. expenditure are the guiding principles, in higher audit. "Performance
Audit" has the following broad objects.
(i) whether planning has been according to the basis objectives.
(ii) Whether the Operations are efficient and economical.
(iii) Whether the results expected are being achieved and in-commensurate with expenditure/
investment.
NOTE 1:- The examination in Performance Audit may be outlined as follows:-
(i) Whether decision has been based on consideration of alternative against the objective as
well as the cost-utility aspect of such alternatives.
(ii) Whether detailed programmes for implementation of the decision and the cost schedules
are framed in advance.
(iii) Whether data showing the progress of implementation and the cost involved are compared
with the targets.
(iv) Whether reasons for variations, between the targets and the actual are investigated according
to responsibility areas and necessary corrective action taken on time
(v) Whether there has been wastage of men, materials and money.
(vi) Whether the cost of Operations compares favourably with either standards or the cost in
similar organizations.
(vii) Whether the physical returns match with the anticipation.
(viii) Whether the physical purpose of the expenditure has been achieved.

23
The examination at item(i)n above may reveal the weakness, if any, of the decision to undertake a
programme. The examination at items (ii) to (v) will determine the efficiency of implementing the
programme while those at items (vi) to (viii) will bring out the efficacy of the programme.

In any performance audit, the following aspects will have to be determined in advance:-
(i) The object of the investigation, i.e. clear definition of the performance which proposed to
be assessed.
(ii) The matter in which the results of the performance audit are expected to be utilized.
(iii) The plan for the audit investigation.
NOTE 2:- For an illustrative list of areas of activities in which Higher Audit/Performance Audit is
feasible please refer to Annexure II to this chapter.

NOTE 3:- The guideline on Performance Auditing issued by C&AG of India is available on http:/
/[Link]/html/publi_peraudguid-[Link] which should be followed in conducting
performance audit by LAOs.

NOTE 4:- For the standard format of preparing the Performance Audit Report please refer to
Annexure III to this chapter.

Infor
Infor ma
ormation Systems Audit
mation

The biggest challenge for auditors (including internal auditors) is the extensive application of
information technology in offices that come under their audit purview. Many of the government
departments have computerized their operations in a manner that the records do not exist in the
same hard copy form. Also the audit trail (sequence) of operations through a paper record is often
lost in automated system, particular where work flow is automated. Internal auditors would face
this challenge to varying degrees depending upon the extent of computerization in the departments
they audit. It may be very high in Commercial Taxes Department and not so in the other departments.
Information Systems Audit is the process of collection and evaluation of evidence to determine
whether a computer system has been designed to maintain data integrity, safeguard assets, and
allow the effective realization of organizational goals, and ensure efficient utilization of resources.
Data integrity relates to the accuracy and completeness of information as well as to its validity in
accordance with the norms. More specifically, internal auditor should determine by independent
tests that computer-processed data are reliable and that the input data are reasonably accurate and
complete; and any computer processing performed on that data is reasonably accurate and complete.
Where computers are applied to generate general / financial information for the management, internal
auditors may not subject such a system to any assessment. However, when payments (such as
payroll or pensions) are processed on computer systems, it becomes necessary for the internal
auditors to test the system to assess its reliability. The Audit Trail is a documented unbroken chain
of events that is necessary in order to determine if basic internal controls are in place. It provides
a basis for audit test work. Tools like IDEA, SPSS, NT- Auditor, MS-Access, etc have brought
about a revolutionary change in the audit techniques more so in audit sampling. These tools have

24
rather simplified the conceptualization of sampling for compliance and substantive testing as well
as for supporting the CAAT (Computer Aided Audit Techniques).

ANNUAL AUDIT CER

ANNUAL TIFICA
CERTIFICA TE
TIFICATE

40. Every LAO will submit annually to the PCDA/CDA(AF) so as to reach his office by the 25th
July each year, the certificate as laid down in para 535, Defence Audit Code. The instructions
contained in opera 535 et-seq., Defence Audit Code and any other orders that may be issued
by the PCDA/CDA(AF) should be complied with by the LAOs while submitting the certificate.

LIST OF ACCOUNTS & REGISTERS TO BE AUDITED

41. To ensure that no accounts are omitted in audit, a list of all accounts and registers required to
be maintained by each unit in his area and which he has to audit will be made out by the
LAO(AF) and sent to the PCDA/CDA(AF) for approval. Any additions and alterations to
this list considered necessary based on rules or LAOs experience of the local conditions, will
be carried out under the orders of the PCDA/CDA(AF). This list will be kept up-to-date by
the LAO(AF) and will be handed over by him to his successor. At the time of his visit to a
unit/formation, the LAO(AF) will himself examine the list of ledgers, registers and other
documents to see that each one of them has been audited. He will also inspect the list
maintained by ALAO and see that it is properly maintained.

NOTE :- To help the LAO in preparing these lists, a standard list of accounts and documents
generally maintained by the AF units and formations, which are required to be subjected to audit
or examination is given in Appendix VI to this manual.

REPOR TS & RETURNS

REPORTS RETURNS,, REGISTERS & BOOK OF REGULATION TO BE
REGULATION
MAINTAINED BY LA
MAINTAINED LAOO

42. The following lists will be maintained in Local Audit Offices vide Annexures 1,2 and 3 to
Appendix VII of this manual :-

LIST-'A' - Showing reports and Returns due to main office.

LIST-'B' - Showing list of Registers to be kept in Local Audit offices.

LIST-"C" - Showing list of Books of Regulations, Instructions, etc., to be maintained in

Local Audit Offices.

The Superintendent will be personally responsible for seeing, from time to time, that reports
and returns are submitted on due dates, the register are kept up-to-date and the books of regulations
are duly corrected. The list of reports and returns and registers maintained in his office will inspected
by the LAO monthly and at the time of his periodical visits in the case of outstations.

43. Blank.

25
Inter nal Audit - Implementa
Internal tion Cy
Implementation Cyccle

26
 ANNEXURE I
KEY RISK AREAS FOR HIGHER AUDIT / PERFORMANCE AUDIT
(Referred to in Para 27)
(I) The Classification of indents as AOG indent in the Air Force whether such
classification is made a matter of course and whether the purpose for which such
classification was made was achieved.
(II) Air-lift of stores-whether the cost of Air-lift is justified by the nature of the demand
and the quantity procured and utilized
(III) Storage arrangements- whether space occupied is commensurate with the value
and nature of the stores' deterioration in storage etc.
(IV) Short-life items e.g. medicine in hospitals, tinned food article - whether utilized
in time.
(V) Review of slow-moving and non-moving stores and disposal of surplus store-
cost of holding the store in terms of stores keeping charges and blocking of capital.
(VI) Variety reduction in stock items. For example, the same spare parts may be stocked
separately for each equipment; similar items may be standardized into one ; etc.
(VII) Utilization of items already declared as surplus against demands for alternative
items.
(VIII) Scales of issues - the scope of reduction in case the scales are liberal and
introduction of scales where these are non-existent-particularly in the case of stores
which are used on an " as required" basis.
(IX) Pattern of consumption of rations of a day-to-day basis and existence of huge
balances in rations.
(X) Categorization and disposal of empty containers and packing material.
(XI) Disposal in the salvage Depots or Salvage Sub-Section of other Depots-loss of
sale value due to delay
(XII) Pattern of transit losses over a period of time
(XIII) Handling and evaporation losses-whether permissible limits are written off as a
matter of course.
(XIV) Utilization of idle capacity and idle labour. For example, if idle capacity cannot
be utilized, action should be taken for the disposal of the plant., machinery,
equipment etc. idle labour can be gainfully utilized by temporary redevelopment
on heavy maintenance, re-organisation of stores, etc, to be specially taken up for
this purpose.

27
(XV) Use of Govt. transport

(XVI) Utilisation of Railways sidings- avoidance of small consignments

(XVII) Review of passenger manifest and cargo manifest of IAF Flights.

(XVIII) Adequate realization from the Grass Cutting / Usufructs of land.

(XIX) Commercial utilization of Defence Land.

(XX) Investigation into the reasons for losses to prevent similar losses in the future.
(XXI) Exercise of discretionary powers by the controlling officers under the various
Rules
(XXII) Condemnation of Article and equipment in use
(XXIII) Railing and backrailing of stores
(XXIV) Comparative cost of the same service or supplies as between difference
Establishments and stations. For example, the cost of MES maintenance,
hospitals diets, repairs in EME workshop etc.
(XXV) Maintenance cost of equipment vis-à-vis residual life/value.
(XXVI) Short-fall in planned targets of output, in utilization of planned capacity
orin planned percentage of indigenous contents. It should particularly be
seen whether short-falls are due to controllable or uncontrollable factors.
(XXVII) Abnormal delays leading to :-
(a) Valuable machinery remaining idle.
(b) Raw Material remaining unutilized and consequent deterioration in
stock.
(XXVIII) Losses due to delay in procurement of machinery and material resulting in
set back to the entire production schedule.
(XXIX) Procurement of defective/ substandard items of machinery, equipment and
down gradation of plant/machinery/equipments before expiry of its normal
life. For the purpose log cards may be examined
(XXX) Justification for payment of systematic overtime as a matter of routine.
(XXXI) Short-fall in actual production against the target and in actual utilization of
facilities established.
(XXXII) Manufacture in Equipment Deport/BRDs/Units at disproportionately high
costs as compared to trade price/ vocab price.
(XXXIII) Creation of excess production capacity.

28
(XXXIV) Non-utilisation/ Under-utilisation of Plants, Costly machinery
(XXXV) Unproductive expenditure e.g. expenditure incurred on items which have
not been or could not be put to use for which they were originally intended.
(XXXVI) Avoidable extra expenditure in equipment Depots on procurement of stores
due to lack of co-ordination between Air HQrs and Defence indentors.
(XXXVII) Extra expenditure on procurement of stores of a costlier variety where
cheaper varieties could have served the same purpose.
(XXXVIII) Losses due to avoidable delays in disposal of certain unwanted/surplus/
obsolete stores, equipment and vehicles due to non-completion of procedural
formalities in time, deterioration in store and infructous expenditure of staff
employed
(XXXIX) Infructuous expenditure due to avoidable movements to and fro of stores
including reparable equipment/ vehicles.
(XL) Damage to stores due to improper storage.
(XLI) Excessive employment of casual labour by unit/ equipment depots etc.
(XLII) Delay in procurement of new equipment, leading to extra expenditure on
repairs to existing equipments.
(XLIII) Over provisioning of stores, leading to surplus and delay in disposal of
such surplus holdings.
(XLIV) Defective inspection of stores, leading to deterioration of rejection after
receipt.
(XLV) Failure to prefer claims against supplies in time for damage to stores, coming
under warranty clause.
(XLVI) Huge deficiencies in stock remaining undetected for long due to failure to
carry out stock verification or on account of incorrect stock verification and
abnormal delay in carrying out necessary investigation.
(XLVII) Accidents to vehicles, machinery etc. due to non-observance of prescribed
rules/ procedure.
(XLVIII) Delay in investigation of frauds etc. resulting in payment of subsistence
allowance to suspended employees on the one hand and making investigation
ineffectual and difficult on the others.
(XLIX) Purchase of substandard items and failure to reject them within specified
period making it impossible to claim damages from suppliers.

29
(L) Imbalance between drivers and vehicles resulting in unproductive
expenditure either on account employment or surplus technical personnel
or due to vehicles lying idle for want of drivers.
(LI) Payment of abnormal demurrage charges or expenditure due to detention of
wagons etc.
(LII) Scrutiny of issues of 'C' class stores, particularly those which are valuable
and attractive or those which have a ready market, with reference to their
local knowledge, comparison of expenditure of such stores with that during
the past period within the same unit or with that by similar unit during
comparable periods and to bring to notice cases where it is found that issues
are too frequent or that there is apparent extravagance in issue of such stores
or there is prima facie no justification for issue of such stores.
(LIII) Hold up of Vehicle for repairs for considerable length of time on ground of
non-availability of spare etc
(LIV) Examination of procedure for packing and dispatch of store transferred
between units with a view to minimize the [Link] and transit losses.
(LV) Examinations of causes of losses of repetitive nature such as shortage of
storage accommodation, improper binning and inadequate security
arrangements.
(LVI) Charging off stores upto a maximum limit as a matter of course without
adequate proof of their consumption/ utilisation.

30
 ANNEXURE II
(Referred to in Para - 12)

GENERAL GUIDELINES FOR LAOs IN RESPECT OF AUDIT OF SANCTIONS

(a) One of the important functions of audit in relation to audit of expenditure is to see that each
item of expenditure is covered by the sanction of authority competent to sanction.

(b) It also need to be ensured that authority sanctioning it is competent to do so by virtue of

powers vested in it and sanction is definite and need no reference.

(c) It is imperative that utmost care and attention should be devoted to the work connected with
the audit of sanctions to the expenditure , as once the sanction has been accepted in audit ,
expenditure may have to be passed against it for a length of time.

(d) The sanctions are issued by the CFAs as per the delegations of powers.

(e) Provision of funds is necessary before financial powers can be exercised .

(f) The authority sanctioning the expenditure is empowered to sanction a particular expenditure.

(g) The specific provisions under which the sanction has been accorded viz. Govt. letter / Air
force Instructions etc is indicated.

(h) Sanction for a particular item has not been split in order to bring the financial powers with in
powers of lower authority.

(i) The sanction accorded is not for an expenditure which involves introduction of new practice.
The sanction of Govt. of India is necessary for any expenditure which involves introduction
of new practice.

(j) The sanction accorded to incur expenditure during a particular year has been acted upon
during the same year and should not be acted upon during the subsequent year unless it is
specifically renewed.

(k) The sanction should indicate the Head of account against which expenditure is debitable.

(l) The sanction should clearly indicate the amount of expenditure in words and figures and also
that cost is inclusive of taxes and duties or not.

(m) The sanction should also indicate the purchase procedure to be adopted for procurement.

(n) The sanction should also indicate the IFA's concurrence number and date if applicable.

(o) All sanctions should be appropriately serial numbered for a financial year.

31
 ANNEXURE III
(Referred to in para 39)

Sample Internal Audit Report

(Performance/Higher Audit)

Contents
1. Executive Summary ..................................................................................

2. Background ...............................................................................................

3. Scope and Objectives .................................................................................

4. Audit Approach ..........................................................................................

5. Conclusion .................................................................................................

6. Acknowledgement ....................................................................................

7. High priority Recommendations ................................................................

Appendix A - Detailed Summery of audit findings .............................................

Appendix B - Key risks addressed ......................................................................

Appendix C - Priority Ratings ............................................................................

Audit visit Completed on ...................................................................................

First draft report issued on .................................................................................

Final Management responses received on ..........................................................

Final report issued on .........................................................................................

32
1 Executive Summary
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

2 Background
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

3. Scope and Objectives

____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

4. Audit Approach
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

33
 ____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
5. Conclusion
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
6. Acknowledgement
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________

7. Higher Priority Recommendations

Ref. Issue/Risk Recommendations Management Response/
Action Plan

34
 APPENDICES
Appendix A - Detailed Summery of audit findings

Ref. Audit Observation Management Comment

Appendix B - Key risks addressed

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Appendix C - Priority Ratings

________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

Issues Priority - Recommendations

High Priority

Medium Priority

Low Priority

35
 ANNEXURE-IV : RISK INDICATORS

Functions Risks
Fixed Assets/Stores y Asset is not properly recorded in the
books of accounts and the loss or misuse
of asset may be not known;
y Poor control over the use and allocation
of the asset may lead to its misuse or
misappropriation;
y Poor control over the maintenance of the
assets may lead to the asset deteriorating
in value; and obsolescence of assets
y Poor control over indenting procedures
and accounting may lead to excess
procurement, redundancy, obsolescence,
unanticipated shortages, and so on
affecting the service delivery.
y Poor control over receipt, issue and
storage may lead to loss of stores through
theft, fraud, negligence or accident; and
y Payments made before the actual receipt
of the goods may lead to acceptance of
poor quality or substandard stores.
Fixed Assets/Stores y Payment of full salaries and increments
in respect of employees who are:
o Non-existent,
o under suspension - as per rules,
employees under suspension are only
eligible for subsistence allowance
equal to leave salary on half pay, plus
dearness allowance on the basis of such
leave salary;
o on leave without pay;
o transferred or on foreign service
y Actual staff strength is higher than the
sanctioned strength;

36
 Functions Risks
y Improper pay fixation and sanction of
increments;
y HRA, other allowances, medical
reimbursement, etc. do not conform to the
rules / government orders / instructions;
and
y Discrepancies in the recovery of loans
and advances from the employees.

Personnel Claims y Double/Duplicate claims.

y Non recovery of loan and advance when the
employee resigns or retires or is transferred.
y Payment of non-entitled local allowances .

Contingent Expenditures y Excess amounts are drawn under contingent

expenditure
y Sanctions are split
y Rates are extravagant
y The standards of financial propriety are not
observed
y Bills are forged
y Amount sanctioned under permanent
advance used for purposes other than those
prescribed in Rules/DFPR.

Procurement of Goods y Stores procured without proper sanction or

utility;
y Proper forecasting of stores not done which
leads procuring goods in emergency
deviating from the rules of procurement laid
in manuals/codes;
y Stores are procured unnecessarily to avoid
lapse of the budget grant;
y Tenders called for without proper sanction
or in accordance to the rules;
y Lowest tender reject without adequate
justification.

37
 Functions Risks
y Inferior quality goods/services received;
y Change in the terms of contract, price or
quantity of goods supplied;
y Misrepresentation in the distances in the
claims of carriage of goods;
y The stocks procured not entered into the
stock register.
Detection of Frauds y Transactions not recorded on timely manner
y Discrepancies or unsupported transactions
y Unexplained reconciliations
y Vague responses to audit queries
y Denial of access to records
y Un-due time pressures
y Unusual relationships with management
y Absence of appropriate segregation of duties
consistent with appropriate control objectives
y Absence of appropriate reviews and
approvals of transactions, accounting entries
or systems output;
y Inadequate provisions for the safeguarding
of assets;
y Evidence of failure misappropriation; to
safeguard assets from loss, damage or
y Evidence that a system fails to provide
complete and accurate output consistent with
the auditee's control objectives because of the
misapplication of control procedures;
y Evidence of intentional override of internal
control by those in authority to the detriment
of the overall objectives of the system;
y Evidence of failure to perform tasks that are
part of internal control, such as reconciliation
not prepared or not timely prepared
y Absence of a sufficient level of control
consciousness within the Organisation.
y Significant deficiencies in the design or
operation of internal control
y Failure to follow up and correct previously
identified deficiencies in internal control.

38
 DETAILED INSTRUCTIONS TO BE FOLLOWED IN LOCAL AUDIT IN
THE CONDUCT OF AUDIT OF VARIOUS STORE ACCOUNTS OF AIR
FORCE UNITS & FORMATIONS
CHAPTER II

ANALYSIS OF MANUAL VOUCHERS (NON-IMMOLS)

Topics Para
General 44
Detailed check Lists, etc., preparation of 45
Check of vouchers, registers and voucher Files 46-48
Check of uncleared certificate receipt vouchers 49
Check of uncleared "Reds" & "Blues" 50-52

GENERAL

44. Because of its vast dimensions, the work of audit of main equipment accounts (as distinct
from other accounts such as armament, medical ration etc.) cannot be profitably taken up in
all its various aspects at one stretch. It is advisable to divide it into stages, i.e., the work
falling in each stage should be isolated and full attention should be concentrated on it till its
completion before taking up the next stage of work. The work can be roughly divided into the
following independent stages, viz.,
(i) Preparation of detailed check lists with concurrent check of voucher, registers and voucher
files;
(ii) Security of stock record cards register, Not-in-Vocabulary register and check on authorised
proportions of holding;
(iii) Linking, etc., of vouchers of all types into main and subsidiary accounts;
(iv) Other processes of audit on vouchers and connected registers and documents, including
checking, pricing and verification of credits to Government; and
(v) Examination of results of stock-takings, etc., and any other items remaining to give the last
finishing touch to audit of this account.
Necessary instruction relating to the preparation of check lists and check of vouchers are
given in subsequent paras. The other processes outlined above have been dealt with in respective
Chapters.

39
DETAILED CHECK LISTS ETC. - PREPARATION OF

45. As many blank sheets of paper as there are manifold voucher registers maintained by the unit
should be taken and on top of each sheet should be marked (i) the class of vouchers, viz.,
external receipt vouchers, internal issue vouchers, etc., (ii) period of audit and (iii) note the
first and last numbers of vouchers taken up month-wise in the period covered by audit. A red
line should be drawn in the voucher register just below the last voucher serial No. taken up
for audit and initialed with date.

CHECK OF VOUCHERS, REGISTERS & VOUCHERS FILES

46. Each voucher register should be examined to see-

(i) That the Accountant Officer has inspected the register regularly;
(ii) That the various columns in the registers are duly completed;
(iii) That the vouchers are passed promptly by Equipment Section to Equipment Accounts Section
and that there is no undue delay in completing and filing of vouchers;
NOTE: -In the case of (a) register of internal receipts (Form IAFF (Q) 435-A), (b) register of
internal issue (Form IAFF (Q) 437-A) and (c) register of conversion vouchers (Form IAFF (Q)
437-A) for which no pending files are maintained, it should be seen more particularly that the
dates of receipt of original and duplicate copies of vouchers have been duly entered in columns 6
and 7 of the registers and the last column is completed by a red ink against each serial number to
indicate that each ticked voucher has been filed. The serial numbers of vouchers against which no
red tick has been marked in the registers should be listed. Cases of vouchers in respect of which
either of the columns 6 & 7 are not found completed should also be listed. The corresponding
vouchers files should then be scrutinized to see that the original and duplicate copies of all vouchers,
red ticked in the registers, have been pinned together and filed and that all duplicate copies are
identical as to particulars and signed by Officer-in-Charge, Flights / Section concerned.
(iv) That all sheets are filed therein (i.e. that there is no break in series). If any sheet is/are found
missing from the registers or any serial number(s) or block of number(s) are found not
taken up or taken up twice, take a note of the fact in detail in the preliminary list of
observations.
47. The blocks of numbers taken up (more particularly the last number taken up for audit as
noted from Equipment Accounts Section register), should be verified with the corresponding
duplicate register held by the Equipment Section (S.R.S.) (and also by the D.C.O. and sites
for main stocks in the case of depots), to ensure that the last sheets of each series of registers
issued by those sections, have been duly received and filed in the Equipment Accounts Section
registers. The total number of sites involved should be ascertained to see that information
from all the sites has been supplied.

48. After ascertaining that the last serial numbers of vouchers falling within the period of audit,
have been correctly taken, proceed to analyse the vouchers of each series from the entries in
the voucher registers under the categories indicated generally in the sample proformae given

40
 in Appendix VIII to this manual. Whenever the nature of voucher is not evident from the
particulars given in the register the original voucher in the file may be consulted.

CHECK OF UNCLEARED CERTIFICATE RECEIPT VOUCHERS

49. Immediately after completion of the "distribution check lists", as mentioned above, the pending
files of uncleared Certificate Receipt Vouchers will be examined as under:-

Whenever equipment is received from any source without covering voucher, the stores are
brought on charge by means of Certificate Receipt Vouchers. The regular consignor issue
vouchers when received are allotted the same Receipt Voucher No. and filed with the relevant
Certificate Receipt Vouchers. Such of the Certificate Receipt Vouchers which are found un-
linked with the relevant consignor's issue vouchers will be listed in the preliminary observation
statement.

Likewise the certificate receipt vouchers raised in respect of supplies received from abroad,
it will be ensured that corresponding Packing Accounts/Packing Lists/IAFF (Q) 501 etc., are
filed with them. When the documents in support of these Certificate Receipt Vouchers are
wanting, it should be seen that the unit has taken proper action to obtain them.

CHECK OF UNCLEARED "REDS" AND "BLUES"

50. Consequent on the introduction of the system of 100% scheduling of copies of issue vouchers
by the consignor LAOs to the consignee LAOs for linking, individual cases of un-linked
"Reds" and "Blues" copies of IAFF (Q) 429 are not to be objected to in audit ; instead the
register of incoming Blues vide Appendix 'B' to AFO No. 788/71 as amended from time to
time will be seen and where a large No. of consignor's vouchers. Blues/Reds, have not been
received in consignee units, an observation will be raised with a view to accelerating action
by the consignee to obtain the wanting vouchers.

51. For the reasons explained in the preceding para, the inclusion of each and every case of
unlinked "Black" copy of IAFF (Q) 429 awaiting "Blue" at the consignor units in the objection
statement is not necessary. Cases where a large No. of voucher (Blacks) are outstanding for
want of receipted blues will however be pointed out and pursued through an observation.

52. As soon as the items of work dealt with above are completed, the preliminary list of
observations collected during the course of audit will be handed over to the Accountant Officer
for action. These observations will include-
(a) Serial numbers of vouchers (arranged according to types of vouchers) not produced (as
collected from detailed check lists).
(b) The missing sheets in the various registers.
(c) The certified-not-taken-up/certified-non-issued vouchers for which requisite certified
vouchers/lists from E.O/D.C.O. are not forthcoming.
(d) List of original copies of internal vouchers awaiting duplicates.

41
 (e) Various omissions and defects in the completion of the prescribed columns in the vouchers
registers.
(f) Lists of certificate receipt vouchers pending for linking with the consignor's issue vouchers
(including certificate receipt vouchers for imported stores).

(g) Cases of vouchers for stores issued to other departments, etc., receipted copies of which are
either not sent to the CDA (AF) or if sent, his acknowledgement is awaited.

(h) Cases of vouchers relating to issues made to Army, Navy and M.E.S., unreceipted copies of
which have not been passed on to the LAO for inter-departmental adjustments.

(i) Cases of vouchers relating to stores issued in connection with operations, etc., (where statistics
are ordered to be maintained) not passed on to the CDA (AF) for further action, and

(j) Any other points of observation coming to light during the course of work.

ANALYSIS OF VOUCHERS (AUDOLS)

52-A. Analysis of vouchers through AUDOLS will be carried out in accordance with the procedure
outlined in Annexure I to Chapter IV and Appendix XIII & XIV to this Manual.

42
 CHAPTER III

"CASTING", "LINKING", "PAIRING" & "SCHEDULING"

Topics Para
Definitions 53
Casting of Tally Cards/Stock Record Cards & Accounts & verification of
opening & closing book balances 54
Method of working out closing balances for audit checks 55-58
Check of Tally Cards/Stock Record Cards with Tally Cards/Stock Records
Cards Registers 59-60
Procedure of linking 61-62
Linking of External issues 63
Verification of credits for stores transferred between Air Force formations
and between Air Force and Army formations 64-70
Verification of credit of stores received from outside India 71-74
Linking of final receipts and final issues 75
Linking into subsidiary accounts and documents 76-79
Scheduling of vouchers 80-82

DEFINITIONS

53. The definition of the following terms will, for the purpose of these instructions, be as follows:-
(a) "Casting" means checking of totals in the accounts arithmetically by processes of addition,
subtraction etc., to verify their correctness in audit. The check should be exercised on
horizontal or vertical sets of figures as existing in the accounts.
(b) "Linking" means bringing together an entry in the store accounts and a supporting voucher
to ensure that the entry in the store accounts is strictly in accordance with the voucher or
vice-versa.
(c) "Pairing" means bringing together with two documents which are supposed to be facsimile
copies one of the other to ensure in audit that they are, in fact, identical.
(d) "Scheduling" means transmission of vouchers by the consignor LAO to the consignee LAO
in regard to stores issued from one unit to another unit, formation, etc. (including in the case
of Equipment Depots, transfers to the unit Equipment Section from the main Depot equipment
stores).

43
CASTING OF TALLY CARDS/STOCK RECORD CARDS AND ACCOUNTS AND
VERIFICATION OF OPENING AND CLOSING BOOK BALANCES

54. "Casting" constitutes a very essential part of audit and under detailed audit-it is required to
be carried out cent per cent on all numerical store accounts (principal, subsidiary or ancillary)
including verification of opening and closing book balances exhibited therein. In the case of
tally cards/stock record cards, etc., the last audited closing balance represents the opening
balance. In the case of monthly balanced accounts such as Ration account etc., the opening
balances are to be agreed with the closing balances of the previous month.

METHOD OF WORKING OUT CLOSING BALANCES FOR AUDIT CHECKS

55. After the opening balances are agreed with the last audited closing balances, the closing
balances falling at the end of the period covered by local audit are to be worked out for check
as follows:-

The totals should be struck (i) of the opening balances and receipts (ii) of the issues and the
results of (ii) should then be subtracted from the result of (i) and the resultant figure verified
with the closing balances recorded in the stock record cards/ledger tally cards, etc.

56. However, as an exception to the above para, where a receipt transaction appearing in the
account previously audited is linked into the tally cards, etc. at a subsequent audit, the
correctness of the closing balance shown against that entry and against the next entry also
should be verified. The check of the balance against the receipt entry is designed to bring to
light possible interpolations after audit (without increasing the last audited closing balance);
the check of the balance against the next item is designed to ensure that the effect of the
receipt has really been carried forward. Should there be any discrepancy in these balances, or
if corrections or erasures appear in subsequent balances, the final closing balance will be
fully checked in the manner indicated in para 55 above.

57. It will be particularly seen that the last audited balances have not been altered, erased or
overwritten. In order to prevent the possibility of alternations being made in the posting of
tally cards, etc., in respect of transactions, which under the prescribed percentage are left
unlinked, the local audit staff will invariably and before commencing any other audit process,
check the casting of tally cards, ledgers, etc. A line will be drawn neatly against the closing
balance indicated in the tally card of each article. The last audited closing balances both in
the tally cards and other accounting documents will be initialed and dated in ink by the local
audit staff, an additional initial being fixed by them against every alteration to such balances.
In continuation tally cards/stock record cards etc., the last balance and the balance brought
forward will also be initialed.

58. Blank.

44
CHECK OF TALLY CARD/STOCK RECORD CARDS WITH TALLY CARDS/
STOCK RECORD CARDS REGISTERS

59. Before taking up casting of tally cards/stock record cards pertaining to a vocabulary section,
their serial numbers will be checked with the entries in the manuscript register of tally cards/
stock record cards to ensure that no tally card/stock record card is missing and that all tally
cards/stock record cards, etc., are produced. This precaution is to be invariably followed
until the casting of stock record cards/tally cards of all vocabulary sections, falling within
each cycle of audit is completed.

60. When a current tally card/stock record card cannot be traced, a new card is to be raised (after
due investigation by the Commanding Officer as to the circumstances leading to the loss).
The new card will be raised by Equipment Accounts Section by bringing on the last stock-
taking balance and recompiling the accounts by posting the issues and receipts, etc., from the
voucher files. The balance then struck is to be compared with the actual stock. Should any
discrepancy be disclosed thereby, it is to be investigated and adjusted in the appropriate
manner. LAOs in such cases will carry out certain test checks from the various voucher series
files to ensure that the new cards have been properly constructed.

PROCEDURE FOR LINKING

61. The basic procedure to be observed in linking of vouchers into tally cards or vice-versa is as
under:-
(i) Linking of issue transactions (including final issues)-Linking will be carried out from entries
in Tally Cards/Stock Record Cards into issue voucher and not vice-versa.
(ii) Linking of receipt transactions-Linking will be carried out from entries in the receipt vouchers
into tally cards/stock cards and not vice-versa.
(iii) Linking of issue-cum-receipt transaction (i.e. transactions appearing in conversion etc.,
vouchers allotted conversion voucher numbers), and also certificate issue vouchers:-
a. Check of 16 ½%of the issue transactions which are covered by the selection order
given by the LAO will be carried out from entries in the tally cards/stock Record
Cards, etc., into vouchers and not vice-versa.
b. Check of 16 ½% of receipt transactions as covered under selection orders for "Receipt
Linking" will be carried out from vouchers into tally cards/stock record cards, etc.,
and not vice-versa.
(iv) Linking of issue/receipt/conversion transactions into subsidiary accounts and documents-
Check of 'A' & 'B' CLASS stores (and bulk issues of 'C' Class stores such as photo stores,
POL stores, etc.), the vouchers for which require bilateral linking action into stock record
cards and also in subsidiary accounts and documents, viz., Articles-in-Use Ledgers, Mileage
Cards, Flying Clothing Cards, photo-sub-stock record cards, etc., are to linked from vouchers
into the relevant subsidiary records and not vice-versa.

45
 (v) Final receipts will comprise of (i) all CRVs (including IAFF (Q) 405) raised to account for
surpluses discovered during the periodical snap checks and normal stock-takings, etc., (ii)
stores returned from flights and sections without replacements (viz. IAFF (Q) 448) and (iii)
vouchers for scraps byproducts and other arising (for instance nails, pieces of hessian, etc.)
from various sites, sections of units/formations.
62. Linking will be carried out as at item (ii) above. When linking the issue transactions from
tally cards into issue vouchers, a small neat tick should be put in the tally cards/stock record
cards against the transaction and a corresponding tick on the issue voucher and the voucher
will be enfaced linked and "audited" under the dated initials of the auditor after carrying out
other prescribed checks. While linking external receipt vouchers into tally cards/stock record
cards the same procedure will be followed except that the enfacement to be made in this case
will be "linked" and not "audited".

CASTING, LINKING, PAIRING AND SCHEDULING (AUDOLS)

62-A. Casting, linking, pairing and scheduling of AUDOLS vouchers will be carried out in
accordance with the procedure outlined in Annexure I to Chapter IV.

LINKING OF EXTERNAL ISSUES

63. The various methods of selecting 16 ½% of tally cards entries are laid down in Annexure I to
Appendix IV of this manual. The method of selection for each month/half year will be recorded
under the dated initials of the LAO and filed in a separate (confidential) file.

VERIFICATION OF CREDITS FOR STORES TRANSFERRED BETWEEN AIR

FORCE FORMATIONS AND BETWEEN AIR FORCE AND ARMY FORMATIONS

64. The issuing (supply) formation furnishes 2 copies of issue vouchers ('D' and 'E' copies in
respect of issues from Army and 3rd and 4th "Blues" in the case of issues between Air Force
Units) to its LAO, who links the transactions in the consignor's ledger by means of one copy
and sends the other copy to the LAO of the consignee to check credit of stores in his (i.e.
consignee's) ledgers.

65. The consignor LAO should personally select a certain No. of 4th copies of EXT/IVs FS Q
429 and 501 at his discretion from every batch of 4th copies scheduled to consignee LAOs
and pair them with the corresponding 3rd copies under his dated initials. He will also mark
on both the 3rd and 4th copies of the vouchers "for personal linking by consignee LAO". The
particulars of these vouchers so marked will be noted on the scheduling top sheet.
(b) The particulars of these 3rd copies of vouchers which are paired by the consignor LAO will
be entered in a register opened for this purpose.
(c) Particulars of these 4th copies of vouchers received from consignor LAO for personal linking
will be entered in another register on their receipt by the consignee LAO.

46
 (d) At the time of review of issue of audit, the selected 3rd copies of vouchers will be linked
with the SSRCs personally by the consignor LAO by consulting the register mentioned at
(b) and action when completed will be indicated in the register.
(e) At the time of review of linking of 4th copies of vouchers received from consignor LAOs,
the specially marked copies will be linked by the LAO by consulting the register mentioned
at (c) above and action when completed will be indicated in the register.
(f) In ALAO (AF) office, the following procedure will be adopted:-

The ALAO (AF) after he has done the pairing of 3rd and 4th copies of vouchers should sort them
out, prepare the forwarding memos, etc., (addressed to the consignee LAO) and forward both copies
of vouchers alongwith the forwarding memos to this LAO, who after complying with the requirement
of the above orders would dispatch the 4th copies to the addressee as per ALAO (AF) forwarding
memos and return the 3rd copy to the ALAO (AF) who could enter such of these 3rd copies as have
been annotated as "for personal linking by the LAO" in the register opened in his office.
(g) The registers referred to at (b) and (c) above will be suitably certified at the completion of
each half yearly audit.
66. An independent prescribed check (from vouchers into tally cards) will be exercised by of 'E'
copies or 4th "Blue" of IAFF (Q) 429 of vouchers received from other LAOs including Army
LAOs) and central purchase and local purchase vouchers received from other sources and
CRVs in the case of overseas receipts received from consignee units. Before commencing
linking 'E' copies and 4th "Blue" copies will be paired with the corresponding consignee's
receipt voucher and the fact of pairing having been done will be endorsed on the former with
the No……….and date ……….of the receipt voucher.

NOTE:- Full particulars of the discrepancies, if any, between the quantities shown on the Local
Purchase Vouchers, and accounted for in the units store accounts will be reported to the CDA (AF)
under confidential cover. Such discrepancies will also be placed under objection in Local Audit.

67. The linking should be completed within the month half year following the month/quarter of
receipt of relevant documents in regard to Equipment Depots/Consuming Units in LAOs
Office. 'E' copies or 4th "Blue" copies of vouchers, central purchase vouchers, local purchase
vouchers, CRVs (in the case of overseas receipts), etc., will be serially numbered in each
case month/half yearly for equipment depots / consuming units. A monthly / half yearly
statement will be maintained on the inside cover of each jacket to show number of vouchers
received, the particulars of vouchers linked and the balance remaining unlinked and the item
No. of the objection statement under which the unlinked vouchers are placed under objection.
The Statement will be duly signed by the auditor, ALAO and LAO. In addition, a distribution
statement for all the inward vouchers received will be maintained on the proforma given in
para 69 below. The serial No of vouchers test checked by the ALAO and the LAO will be
specified in the above statement.

47
68. The typical method of 16 ½% selection of vouchers as laid down in Annexure I to Appendix
IV of this manual will be followed and the particular period selected with details will be
recorded in the Statement under the initials of the LAO.

NOTE:-The LAO should see that the vouchers in respect of stores received in the Depot are being
regularly received and there is no undue delay. Cases of abnormal delay will be reported to
appropriate authorities.

69. The receipt of Inward Vouchers at consignee LAOs and will be recorded in a manuscript
register to be maintained in the following proforma:-

Annexure 'B'

Inward Scheduling Register

NOTE:- The distribution will be shown separately in respect of vouchers received from each
party.

70. The following files/jackets are to be maintained for recording vouchers in respect of each
unit/formation (separate file/jacket to be maintained for each month/half yearly, as the case
may be)

(i) Jacket for copies of vouchers (IAFF (Q) 429) received from LAOs (AF).

(ii) Jacket for inward 'E' copies of ASC vouchers.

(iii) Jacket for Inward 'E' other vouchers.

(iv) Jacket for Inward Central Purchase Vouchers.

(v) Jacket for Inward Local Purchase Vouchers.

(vi) Jacket for CRVs in respect of overseas receipts.

(vii) File to indicate details of selection of receipt vouchers.

48
VERIFICATION OF CREDITS FOR STORES RECEIVED FROM OUTSIDE INDIA

(a) "Non-AOC Stores"

71. Receipts Ex-U.K.-In case of receipts from UK whether through Air Ministry of Indian Stores
Department, London, the LAO (AF) will, on receipt of one copy of CRV with two copies of
packing account and the copy of discrepancy report, if any, take the following action:-
(i) Compare the CRVs with copies of packing accounts 100%;
(ii) Compare the damages and deficiencies noted on both the copies of packing accounts;
(iii) Check them with the relevant CRVs
(iv) Retain the copy of CRV for verification of credit (16 ½%) into the tally cards/stock record
cards;
(v) Return the copy of packing account marked "for retention in India" to the consignee;
(vi) Forward the other copy of packing account meant for the High Commissioner for India in
the UK to the CDA (AF) for pairing with the original Invoices received direct from the UK
and onward transmission through Embarkation Commandant.

RECEIPT EX-FRANCE AND OTHER CONTINENTAL COUNTRIES

72. Equipment from all other countries except USA is purchased through the agency of Director
General, India Stores Department, London. As such, same documents as detailed in para 71
will be received by the LAO (AF) and action will be taken as in the case of receipts Ex-UK.

(b) Receipts Ex-USSR

Invoices received for supplies Ex-USSR will be scheduled to the LAO (AF) by the Project
Section of the Main Office after audit/payments. The LAO will also receive one copy of the
invoice together with the relevant CRV from the unit. The LAO will pair the invoices with
CRV 100% and return the unit copy of the invoice to the unit and the other copy to PCDA
(AF)/CDA(AF) duly annotated with the fact of pairing with CRV/DR etc. The CRV will be
retained by the LAO for verification of credit in the unit records to the prescribed extent.

RECEIPTS EX-USA

73. The LAO will receive a copy of the packing list (instead of packing account) as in the case of
receipts Ex-UK together with the relevant CRVs from the unit in respect of these consignments.
The LAO will check the packing lists with the relevant CRVs 100% and forward the packing
list duly annotated with No. and date of CRV and discrepancy particulars, if any, to the PCDA
(AF)/CDA(AF) for pairing with the invoices received in support of the debits. The copy of
the CRV will be retained by the LAO for verification of credits in the units records to the
prescribed extent.

49
AOC STORES

74. In case of AOC stores, for which packing accounts/packing lists are not received LAO will:-

(a) Pair both copies of CRVs held by EAS and see that they are annotated with full particulars of the
consignment, including Air HQ. Signal Indent invoice No. etc.
(b) Retain one copy of CRV for verification of credit and ultimate linking with the invoice received
from PCDA (AF)/CDA(AF).
(c) Return the copy of invoice to the PCDA (AF)/CDA(AF) after linking.
(d) Ensure that action to raise discrepancy reports has been taken by the unit promptly as required
under Chapter 10 and 38 of IAP 1501.

LINKING OF FINAL RECEIPTS AND FINAL ISSUES

75. The linking of "final receipts" and " final issues" will be carried out to the extent of 16 ½% , the
percentage being applied with reference to selection on the basis of one month account out of six.

LINKING INTO SUBSIDIARY ACCOUNTS AND DOCUMENTS

76. The vouchers viz., internal issue vouchers, internal receipt vouchers, etc., which require bilateral
linking into stock record cards and also into subsidiary accounts or other ancillary records viz.,
Articles-in-Use and Loan Ledgers. Petrol and Oil Books (maintained by MT and aviation section),
sub-stock record cards (maintained by Photo Section). Flying clothing cards, etc., etc., are in the
first instance to be linked in the principal accounts (viz., stock record cards only) and kept a way in
a pad for further action, after due endorsement thereon is made as to the first linking.

77. They will then be sorted out in batches and will be taken to the respective subsidiary accounts held
in different sections of unit for second linking. A second endorsements on completion of linking
(indicating the name of the subsidiary account/record in which linked) is to be made over the dated
initials of the auditor concerned.

78. So far as the check over the quantitative accounting is concerned, linking like casting is an audit
process of paramount importance. In this work too, the primary responsibility for the accuracy in
checking devolves on the auditors in regard to the portion of work allotted to them. Utmost vigilance
is also very essential on the part of the ALAO (AF), as also on the part of the LAO to ensure by a fair
amount of test checking, that the work has been correctly and faithfully carried out.

79. Should the linking reveal serious case of non-accounting of stores and no convincing reasons for the
omissions are forthcoming; the matter will be viewed with justified suspicion and investigated by
the LAO. If the omissions are deliberate or due to clerical negligence, the LAO should consider
whether any further intensification of check in this respect is needed. The same applies to the internal
issues, etc., transactions. If the quantities struck off from stock record cards/subsidiary records which
are not borne out by the vouchers or are in excess of those borne out by them, the measure of
audit check needs enhancement. In such an event, the LAO will supplement his original
selection orders by further orders, indicating the extent of increase in audit to which a particular
account(s) should be subjected. In all such cased, he should report the facts to the PCDA
(AF)/CDA(AF) giving his reasons for enhancing the extent of audit.

50
SCHEDULING OF VOUCHERS

80. "Accountant Officers of consignor units (including Equipment Depots) are required to forward
the third and fourth copies ("Blues") of external issue vouchers (Form F IAFF (Q) 429), or
two copies (Nos 2A and 2B) of F. 501 'schedule of requirements and issues" (as the case may
be), fortnightly under the standardized top lists (in duplicate) of External Issue Vouchers to
the Local Audit Officer not later than 10th and 25th of each month. The LAO will "receipt
and return the duplicate copy of the list". The Local Audit Staff will then pair the 3rd copy
"Blue" with 4th copy "Blue" or the two copies of F. 501 (2A and 2B) and schedule later on
cent percent basis to the consignee's LAO monthly duly enfaced with the word "Paired" with
a top list (IAFZ-2014). Before scheduling, the ALAO(AF), Local Audit Staff, will test check
a small percentage of external issue vouchers over his dated initials. The 3rd "Blue" copy in
possession of the consignor's will form the basis for audit of issues in the consignor's books.
The Local Audit Staff will also ensure with reference to the Manifold External Issue Vouchers
Register that all the vouchers raised have been received by them. Both the upper and the
acknowledgement portion of "Outward Top List" and "Blue" copies of vouchers will be
stamped with the local audit officer's outward date stamp in the top right hand corner "wanting
vouchers (if any) will be pointed out to the unit through preliminary observation lists, as and
when top lists/vouchers are received fortnightly and scrutinized. The POLs will be pursued
vigorously. Vouchers still not received by the time the audit is completed, will be placed
under objection, and included in the objection statement.

81. A manuscript register will be maintained to record receipt/distribution/scheduling of vouchers

to consignee LAOs in the following format:-
Annexure "A"
Outward scheduling Register

NOTE :- In "remarks" column name of L.A.O. to whom vouchers have subsequently been forwarded
either by original consignee LAO or own office will be entered and entries in column 9 and
10 completed on receipt of acknowledgement. The entry will be cleared only when the total
number of vouchers in column 10 works out to be figure shown in column 7.
82. Blank

51
 CHAPTER IV
CHAPTER IV AUDIT OF EQUIPMENT ACCOUNT
SECTION - 1

AUDIT OF TALLY CARDS/STOCK RECORD CARDS AND REGISTER OF

TALLY CARDS/ STOCK RECORD CARDS ETC.

Topics Para
Audit of Tally Cards/Stock Record Register 83 - 84
Audit of Tally Cards/Stock Record Cards 85 - 86

SECTION - 2
AUDIT OF VOUCHERS
Topics Para
General checks to be exercised in regard to completion of 87 - 88
Internal Demand & Issue Vouchers 89
Internal Return & Receipt Vouchers 90

SECTION - 3
AUDIT OF PAYMENT ISSUE VOUCHERS (INCLUDING VOUCHERS FOR
CHARGING LOSS OR DAMAGE) AND LOAN VOUCHERS
Topics Para
A.F. Forms used for payment and loan vouchers 91
Segregation of Vouchers for check 92
Audit checks to be exercised on payment issue vouchers 93 - 96
Issue to UK and other Foreign Govt. 97
Issues to Army (including Factories) Navy, etc. 98 - 101
Issues to Civil Departments, etc. 102
Audit checks to be exercised on loan transaction vouchers 103
Registers maintained in E.A. Section to record payment
and loan transactions 104
Audit checks to be exercised on the Registers 105
Verification of credits 106
Manuscript Inward Loan Register 107

52
 SECTION - 4
AUDIT OF CERTIFICATE RECEIPT VOUCHER CERTIFICATE ISSUE
VOUCHERS AND CONVERSION VOUCHERS ETC.
Topics Para
Certificate Receipt Vouchers, Certificate Issue Vouchers & Conversion
Vouchers 108 - 111
Check of Certificate Receipt Vouchers 112
Check of Certificate Issue Vouchers and Conversion Vouchers 113 - 114
Audit of Salvage & Produce Book 115
SECTION - 5
AUDIT OF LOSS STATEMENT AND DISCREPANCY REPORTS
Topics Para
LOSSES : General I 116 - 120
Categories of losses and Audit Checks to be exercised.
Losses on account of deterioration of equipment in stores 121
Losses on account of deterioration in store at [Link]. 122
Losses in Transit 123
Losses in Foreign Consignments 124
Action on local audit copies of loses statement 125
Audit Reports 126
Check of loss statement register 127
Check of discrepancy reports and D.R. (Out) Register 128 - 130
Manuscript register of Discrepancy Reports (Inwards) 131
SECTION - 6
AUDIT OF FREE ISSUES OF EQUIPMENT (INCLUDING REPLACEMENT OF
ISSUES) AND ISSUES OF EQUIPMENT MAKE TO WORKSHOPS ETC. FOR
MANUFACTURE OR REPAIR ETC. IN EQPT.
Topics Para
Categories of A.F. equipment 132 - 136
Audit of Kit Inventory 137
Flying Clothing Cards 138 - 140
Camp Kit Register 141
Audit of Article-in-Use-Ledger 142

53
 SECTION - 7
CHECK OF CASUAL AND PURCHASE VOUCHERS IAFF (Q) 423 AND
LOCAL SERVICE CONTRACT
Topics Para
Local Purchase of Equipment 143
Audit of local purchase Bills Responsibility of LAOs
vis-a vis audit sections of CDA (AF) 144
Types of Local Contracts 145
Audit of Local Contracts 146
Audit of Comparative Statement of Tenders 147
Audit of Contracts 148

SECTION - 8
Topics Para
Audit of disposals / sales 149
Categories of equipment under disposal 150
Declaration of surplus, etc. equipment etc. for disposal 151 - 152
Methods of disposal of surplus stores 153 - 154
Segregation of Surplus / Salvage stores from current stocks 155 - 158
Procedure for the declaration and disposal of salvage arisings 159
Disposal through Army Salvage Depot 160
Disposal by public auction 161
Audit of disposal stock record cards 162
SECTION - 9
STOCK TAKING OF MAIN STOCK AND INVENTORIES AND AUDIT OF F.S. 33
Topics Para
Periodicity of stock taking 163 - 172
Stock taking of equipment held in articles in use ledgers 173
Surpluses and Deficiencies register 174

54
 SECTION - 10
REGISTER OF INCOMING AND FOREIGN CONSIGNMENT
Topics Para
Audit of Register of Incoming and Foreign Consignment 175 - 176

SECTION 1 - AUDIT OF TALLY CARDS/STOCK RECORD CARDS &

TALLY CARDS/STOCK RECORD CARDS ETC.
AUDIT OF TALLY CARDS / STOCK RECORD CARDS

83. It will be seen that -

(a) with implementation of IMMOLS/EQUOLS all data of store, issue and received is maintained
on-line
(b) in the event of tally cards/stock record cards being declared dead or cancelled, suitable
annotation is made against the entry;
NOTE :- New stock lists of Air Force stores are notified giving comprehensive details of each
item in 10 columns vide AFO 293/69 as amended from time to time.

84. It will be ensured in audit that all tally card/stock record cards have been allotted with GIG
item code and are produced for audit. It will be seen during the subsequent audit -
(i) that no tally card/stock record cards have been opened without the approval of the equipment
officer/warrant officer, etc.

AUDIT OF TALLY CARDS/STOCK RECORD CARDS

85. These will be audited to see that -

(i) the tally cards/stock record cards have been kept on the prescribed Forms as per IMMOLS.
(ii) more than one tally card has not been opened for the same item of equipment;
(iii) details regarding vocabulary section, reference number (or not-in GIG) nomenclature;
standard denomination of quantity and class of stores have been entered therein; when
items of equipment are drawn from A.S.C., A.O.C., or other Army formations, the Army
Section and reference number, nomenclature and other relevant particulars are shown
separately and GIG number in respect of such items is obtained expeditiously.
(iv) all N.I.G. (not-in-GIG) items (i.e. items not interchangeable with standard Air Force items
or not included in the Air Force Vocabulary) are allotted appropriate Air Force Vocabulary
section.
(v) if any item of stock has not been operated upon for a long time, say one year in the case of
a consuming unit and three years in the case of a supply unit, adequate reasons for holding
it in stock are forthcoming;

55
(vi) It may be ensured in audit to verify that the stocktaking has been carried out by the stock
taking party of all the items held on charge.
(vii) all discrepancies noticed in stocktaking are reflected in objection statement and discrepancies
discovered by the unit authorities in the course of stock taking or otherwise have been
adjusted without delay;
(viii) SSRCs of high value items are prominently marked as such and that repairable high value
items are not accumulated in the store;
(ix) the authorised float of rotables has been indicated on the SSRCs in accordance with the
scales determined by Air Headquarters. Repairable arisings of rotables are sent to the repair
depots or disposed of locally in accordance with their classification as Class 'A' and Class
'B' items. The authorised "floats" are not exceeded unless some items have become repairable
or un-serviceable;
In respect of Air HQrs. controlled equipment like Guns, Rifles, Pistols, and Revolvers etc.
the SSRCs are marked prominently as item "Controlled Equipment".
(x) valuable and attractive items have been accounted for on TCs/SSRCs suitably endorsed to
that effect;
(xi) in support of interchangeable equipment, the SSRCs should contain reference to the Air
HQrs. routine orders part IV notifying interchangeability. Similar annotation will be made
in support of absolesence / obosoleteness of stores duly supported by appropriate number
of the Air HQrs. routine orders part IV;
(xii) in respect of changes notified in vocabulary sections reference numbers etc. through Air
HQrs. R.O. Pt. IV Stocks of affected items are converted through the medium of conversion
voucher to the revised section reference number etc. The old vocabulary number as well as
the new number will be shown side by side, for a period of two months after conversion.
Where changes involve stocking of the equipment by a different depot 50% of the stock is
transferred to the new depot. On the expiry of two months after dispatch of the first 50% of
stock, it should be seen that the remaining stock is also transferred on the same lines;
(xiii) inactive stores are struck off charge from tally cards on the authority of surplus reports.
They are held on tally cards marked inactive;
(xiv) in the case of modification sets held on charge, the concerned stock cards are marked with
the class of modification. In the case of approved modifications, the relevant Air HQrs.,
routine orders Pt. III is indicated on the SSRCs/[Link]. Where spared held by the depot are
assembled to make modification sets, stock record cards for these sets indicate items
comprising of each set. When incomplete sets are BOC, dues in columns have been endorsed
with the deficient sets could be completed. No reserves of modification sets are held except
by No. 1 BRD unless specifically authorised by Air HQrs. Modification sets held by unit
for 12 months and no longer requires have been reported to Air HQrs. as surplus to
requirements and necessary disposal instructions are obtained;
(xv) maximum/minimum establishment levels have been reviewed by the equipment officer
after the prescribed period.

56
 These limits are meant only to regulate the stocks in respect of "recurring issues". When
initials issue of items has been received against a scale, it should be ensured that future
stock holdings of the item is to be reviewed as soon as sufficient consumption figures are
available.
NOTE:- Review of establishment is carried out on the following occasions :-

(a) At least one every six-months-through review of stock record cards.

(b) When a lodger unit having a specific type of equipment/aircrafts moves away rendering the
holding of spares etc. for that range of Equipment unnecessary.

(c) Clothing and domestic SSRCs when there is an increase or decrease of personnel in station.

(d) In respect of equipment which has been newly authorised when sufficient consumption details
in the specific range are available.

(e) At any time, if there is a suspicion that the physical stocks are in excess of actual requirements.

Where balance of stock exceeds "maximum" establishment as recorded on the SSRCs, the
excess holding will be placed under objection.

86. The L.A.O. will ensure that the authorised proportion is correctly transcribed in stock record
cards and the extent of this check of accuracy of unit entitlement will be restricted to only 3
to 5% of the items at each half yearly audit visit; main attention being paid to important and
valuable items. It will be further ensured that the balances of stores as shown in the stock
record cards do not exceed the authorised limits and that suitable action is taken for the
disposal of surplus stores unless excesses are supported by proper authority.

AUDIT OF TALLY CARDS (AUDOLS)

[Link] of Tally cards through AUDOLS will be carried out in accordance with the procedure
outlined in Annexure I to Chapter IV and Appendix XIII & XIV

SECTION 2 - AUDIT OF VOUCHERS

GENERAL CHECKS TO BE EXERCISED IN REGARD TO COMPLETION OF

VOUCHERS

87. Blank

88. List of voucher forms to be used in Equipment accounting in the Air Force is given in Appendix
'B' to IAP 1501 and general rules for maintenance of vouchers are contained in para 24 to 39,
Chapter 2, IAP-1501. It will be seen that -

(i) vouchers are correctly created, approved and fulfilled by the appropriate authority.

(ii) vocabulary Section and the reference number are quoted against each item appearing therein.
Separate series of vouchers in respect of internal and external issues and receipts and of

57
 exchange of conversion vouchers are maintained and are numbered consecutively throughout
each financial year, i.e., from 1st April to 31st March;

(iii) in the case of transactions affecting 'A', and 'B' class stores, reference to the appropriate
subsidiary account or document and the inventory number wherever necessary in which action
is to be taken, is indicated on the vouchers;

(iv) separate vouchers are prepared for 'C' Class stores as distinct from A & B Class stores.

(v) all requisite postings have been made and certified by the authorized persons concerned in
the cases prescribed in the voucher for the purpose;

(vi) the instructions in regard to authority to certify vouchers of various types as contained in
paras 38-39, Chapter 2, IAP 1501 have been strictly observed;

(vii) vouchers are kept on record for 3 years after the completion of audit or for such longer period
as may be necessary to settle any items of audit objection which may still be under query.

NOTE:- Issue vouchers, sale release orders, sale accounts, etc., connected with the disposal of
surplus stores, salvage and scrap are, however, required to be preserved in original for a period of
5 years after completion of audit.

INTERNAL DEMAND AND ISSUE VOUCHERS

89. In regard to internal demand and issue vouchers, it will be seen that authority for demanding
the items, namely, the scale or publication in support is quoted by the section raising the
vouchers. In respect of Class 'A' and 'B' stores, subsidiary accounts in which action is taken
viz. A-in-U ledgers, inventories, F. 420 etc. should be indicated by the demanding section.
(ii) Demand vouchers have been approved by the inventory holder whose name has been notified
in "Station Routine Orders".
(iii) Demands for Class "C" equipment fixed by the Boards of Officers are within scale e.g.
cleaning materials, kerosene oil for hurricane lanterns, goose necks, etc. where scale have
not been laid down and the items demanded are of valuable and attractive nature, the specific
job and the number of the relevant F.Q. 401 or job card is quoted on the voucher, otherwise
the demand is properly endorsed to show the purpose for which the items are required.
(iv) All demands have been scrutinised and approved by the authorized equipment officer or by
his representative not below the rank of Warrant Officer or a Civilian Store Keeper of
equivalent status. Where in lieu items of equipment are issued suitable alternations of the
section reference number are made to accord with the substituted issues.
(v) Vouchers pertaining to issues made in replacement of loss are duly cross-referred to the
relevant form IAFF (Q) 406 or IAF(Q) 440-B.
(vi) The column "quantity supplied" is duly completed and where any item demanded is not
issued quantity "0" is written against the item in the "quantity supplied" column.
(vii) In the case of initial issues of clothing, necessaries etc. to airmen the recipients'
acknowledgement have been obtained. These vouchers are marked for IAFF(Q) 466 action.

58
 (viii) In the case of issues of clothing at exchange parades the issues are witnessed by an officer
or a warrant officer who certifies to the unserviceability of the item(s) exchanged. All
Vouchers are endorsed to the effect that the issues have been recorded in IAFF (Q) 466.
(ix) Vouchers for issues of flying clothing, small arms and camp kit to entitled officers and
aircrews are duly marked for IAFF(Q) 443-B action.
(x) In the case of vouchers for items included in Air Frame checking lists, vehicle list, vehicle
guide list etc. the items issues are within the authorised scales for machine concerned.
(xi) In the case of vouchers for items required in connection with repair/manufacture of A.F.
equipment they are annotated with the relevant job number and survey list number. Where
issues are made against return of un serviceable items proper inter-linking of the issue and
return transactions is to be ensured. The acknowledgement of the persons receiving the
equipment has been obtained online.
(xii) Any changes appearing in the voucher are made with the online approval of the System
Administrator IMMOLS.

INTERNAL RETURN AND RECEIPT VOUCHERS

90. In regard to internal return and receipt vouchers it will further be seen that -
(i) the category of the equipment returned is duly endorsed by the technical or other appropriate
specialist officer. In the case of items conditioned as Cat. 'E', the generic heading under
which the item is to be accounted for in salvage records is given by the specialist officer.
(ii) Where the equipment returned has been rendered unserviceable through unfair usage,
unnecessary penal recovery is effected.

AUDIT OF VOUCHERS (AUDOLS)

90-A. Audit of vouchers through AUDOLS will be carried out in accordance with the procedure
outlined in Annexure I to Chapter IV and Appendix XIII & XIV

SECTION 3 :- AUDIT OF PAYMENT ISSUE VOUCHERS (INCLUDING

VOUCHERS FOR CHARGING LOSS OR DAMAGE) AND LOAN VOUCHERS

A.F. FORMS USED FOR PAYMENT & LOAN VOUCHERS

91. The following forms are used to record payment issues/loan transaction.
(a) IAFF(Q) 431 - for payment issues and loans.
(b) IAFF (Q) 440 - for payment issue of clothing to airmen.
(c) IAFF(Q) 440-B - for charging off loss / damage to Air Force equipment etc.
(d) IAFF(Q) 509 - for payment issue of rations.

59
SEGREGATION OF VOUCHERS FOR CHECK

92. All vouchers prepared on the above forms, falling within the period of audit (as per details
collected in the detailed check list) will be segregated from the files and sorted out under the
following categories :-

(i) Internal payment issue vouchers for cash recovery by unit.

(ii) Internal repayment vouchers for use in charging off loss or damage to I.A.F. Equipment.
(iii) External payment issue vouchers (viz. vouchers for issues made to departments etc. outside
the Air Force).
(iv) Loan transaction vouchers.

AUDIT CHECKS TO BE EXERCISED ON PAYMENT ISSUE VOUCHERS

93. Payment Issues to Officers and Flight Cadets - In the case of issues made to officers/flights
cadets, it will be seen -
(i) that the quantity of any article issued is not in excess of his personal needs as covered by the
scale of equipment to be maintained by officers in accordance with current orders and that
the office furnishes a certificate on IAFF (Q) 431 to the effect that the articles are required
to meet his personal requirements;
(ii) that the price charged for any article or length of material represents the price given in the
Priced List of Indian Air Force Equipment plus departmental, additional and other charges
at appropriate rates as laid down in the "Memorandum of Instructions" thereto and that no
issue is made of any article for which price is not given in vocabulary;
(iii) that only those articles of clothing, footwear, necessaries , etc. as are specified in Chapter
14 IAP 1501 are issued;
(iv) that the issue of controlled material does not exceed the limit specified in Chapter 14 ibid
and that the officers to whom the issues are made have endorsed the requisite certificate on
the voucher as prescribed in para 5 ibid;
(v) that in the case of restricted issues to married officer, the officers purchasing the items have
certified that at the time of purchase they were married;
(vi) that where part worn serviceable items are issued, the recovery is made at a minimum rate
of 2/3rd of the vocabulary prices plus the departmental, additional and other charges laid
down in the Memorandum of instructions for rates or at a higher rate where fixed by the
logistic officer.

PAYMENT ISSUE TO AIRMEN

94. In the case of payment issues made to airmen, it will be seen :-

(i) that items of personal clothing and necessaries issued are within the scale laid down in IAP
1503 part C Scale C(i) (a) and (b) as amended from time to time;

60
 (ii) that the special recovery rates as prescribed in Appendix 'A' to AFI 65/72 as amended from
time to time have been correctly charged;
(iii) that in cases where items of clothing and necessaries, which form part of authorised scale of
airmen but are not included in Appendix 'A' to AFI 65/72as amended from time to time
recovery is effected at P.V. rates plus 5% departmental charges (where applicable).
NOTE :-Details in regard to the application of departmental expenses and additional charges are given
in Table 'A', part 'A' of "Admin Instructor for the use of priced lists of IAF Equipment".
95. In regard to the losses/damages, etc. to the Air Force Equipment, chargeable to individuals
on Form IAFF (Q) 440-B it will be seen that -
(i) the recoveries are effected at the P.V. rates plus 5% departmental charges (where not already
included in the P.V. rates) and 5% additional charges both in respect of Public and Personal
Clothing and necessaries;
(ii) the flight or section commander has certified on all the three copies of IAFF(Q 440-B his
opinion of the condition of the equipment [other than those mentioned in clause(i) above]
when lost, damaged, etc. and his recommendation as to the proportionate assessment to be
charged, where full value is not to be charged;
(iii) the assessment of charges has been correctly made in accordance with the provisions of
paras 5 to 12 of Chapter 23 IAP 1501;
(iv) in the case of collective charges, full particulars in regard to each individuals names are
given;
(v) where only a part of the cost of damage or loss is recovered and the rest of the amount is
written off as chargeable to state, the IAFF (Q) 440-B is duly cross linked to the relevant
IAFF(Q) 406.

ISSUE OUTSIDE AIR FORCE

96. All issues out of IAF except where otherwise specified are subject to financial adjustment
either by cash recovery or by book debit. Specific authority of Air HQrs. and Min of Defence
(Finance) will be required for issues of equipment to Army, Navy, Inter services organisation
etc. This authority may also be exercised by Air Officer Commanding in Chief and Officers
Commanding Unit in respect of small issues of equipment including petrol, oil and lubricants
to Aircrafts permitted to land at I.A.F. Air Field. Issues of Arms and ammunition outside Air
Force except to other Defence Services, will require the sanction of Government of India.
Similarly, all issues of Air Force Equipment to Foreign Government will be made only with
the prior approval of Government of India except small and urgent issues as mentioned above.

Issues to Private Firms, Bodies or individuals, Civil Aviation Company, Civil Aircraft owned
by Flying clubs and Aircraft owned by IAF Officers will be on prepayment. Issues to UK and
other Foreign Governments will be on repayment. In respect of issues to Army, Navy and
MES, departmental of Central Government, State Governments, Army Factories etc., issues
will be on book adjustment. The following checks will be exercised on vouchers raised in
respect of these issues :-

61
 (a) Issues to Private Firms, Bodies or individuals, Civil Aviation Company, Civil Aircraft owned
by Flying Clubs and Aircraft owned by I.A.F. Officers.
It will be seen that :-
(i) a details of payment are given on the vouchers. Where issues have been made on
credit, Commanding Officers have undertaken personal responsibility;
(ii) price charged includes 'Departmental' expenses. In the case of Aviation Fuel and Oil,
percentage additional increase in accordance with current instructions are added.
(iii) in the case of issues of Aviation Fuel and Oil to Aircraft owned by IAF Officers,
pricing is done on payment issue rate only without further additions.
(iv) all issues to private bodies, firms etc. are made only on 'freight' to pay basis. No
Military Credit Notes are issues for the purpose. 2% additional charges to cover
ordinary packing is also charged from the buyer and shown on the issue vouchers.
(v) Cost of special packing, if any, is charged at the actual rate.
(vi) Mode of payment i.e. whether in cash or through military receivable order is indicated.

ISSUES TO UK & OTHER FOREIGN GOVTS

97. Issues to foreign Governments are made with the prior approval of the Government of India.
Casual issues to Air-craft belonging to Foreign Governments are however, governed under
AFI 78/71as amended from time to time.
(ii) In the case of casual issues it will be seen that the prices charged are correct, appropriate
departmental charges are levied and three receipted copies of the vouchers are passed on to
the P.C.D.A. (AF)/C.D.A. (AF) and one copy returned by him duly endorsed "noted for
recovery".
(iii) In the case of supply of supply of stores to Foreign Governments, against their demands
sponsored by the Ministry of External Affairs, copies of relevant issue vouchers (unpriced)
have been sent to Air Headquarters and their acknowledgements obtained and recorded.
The LAO (AF)/ ALAO(AF) will also ensure that relevant extracts from the statement,
showing particulars of issuing depots, number and date of the issue vouchers and their cost,
etc. are received from the PCDA (AF)/CDA (AF) for linking.
NOTE1:- In respect of ASC Stores pricing will be done as laid down in AFO 393/71as amended
from time to time and will include in addition to payment issue rate notified in SBRL, Misc.
charges such as river and port dues, toll, octroi, if any, charged on account of packing/special
packing material and additional charges to be worked out as given therein. In the case of POL
supplied to Foreign Aircraft a sum of 13 paise per ltr. will be borne by the Foreign Government
concerned through their representative in India.

NOTE2:-Issues made to Foreign Governments-the price charged is fixed by the Ministry of Defence
(Fin) in consultation with the Ministry of Defence.

62
ISSUES TO ARMY (INCLUDING FACTORIES) NAVY ETC

98. The Account Officer of issuing Depot/Unit supplies three unreceipted priced copies of issue
voucher IAFF (Q) 431 (namely 4th, 5th and 6th copy) to the consignor L.A.O. On receipt of
three copies of issue vouchers in respect of issues to Army/Navy etc. the L.A.O. (AF) will
ensure that the prices charged therein are correct in the case of equipment for which priced
vocabularies have not been published it will be ensured that the prices have been obtained
from Air Headquarters (Dte. of Accounts). After ensuring that the vouchers are identical in
all respects the L.A.O. (A.F.)/ALAO (AF) will indicate on one copy the relevant head of
account to which the cost of the issues made is creditable and the mount involved and then
transmit it to the C.D.A. of the receiving service (Accounts Officer-in-charge, Factories in
the case of issues to Factories). The C.D.A. of the receiving service/Accounts Officer-in-
Charge, Factories will prepare a Punching Medium debiting the relevant service Head of the
receiving service by contra credit to the head of account of the issuing service shown on the
voucher and send a copy of Punching Medium to the consignor L.A.O. (AF) for his information
(citing reference to the related voucher and the No. and date of communication under which
it was received).

NOTE:-It will be seen that no issues of A.F. Stores to Army (including Ordnance Factories and
MES), Navy and Inter Service Organisations (except where otherwise provided in relevant rules)
are made without the sanction of Air HQrs. with the concurrence of Ministry of Defence (Finance)
indicating the terms of issue (i.e. whether free or on payment).

99. The consignor L.A.O. (A.F.)/ALAO (AF) will also schedule one copy of the issue voucher to
the consignee LAO for linking of credits in the books of the consignee unit. With a view to
ensuring that a copy of every voucher received by the consignee CDA has also been scheduled
to the consignee L.A.O. both the processes of forwarding a copy of voucher (i) to the consignee
C.D.A. for Financial adjustment and (ii) to the consignee L.A.O. for linking purposes, will
be done in a single memo.

100. In order to have a proper record of the issue vouchers received from the A.F. units and to
ensure that each transaction has been adjusted in the Defence Accounts, separate files for
each quarter will be maintained by the L.A.O. (A.F.)/ALAO (AF) to record the receipt from
the Depot/Units, the transmission of vouchers to the CDA of the receiving Service and to
record the copy of punching Medium received from them. A statement is to be submitted by
the L.A.O.(AF)/ALAO (A.F.) half yearly (on 30th June and 31st December) to the PCDA
(AF)/C.D.A. (A.F.) to indicate the number of cases with particulars in which a copy of Punching
Medium has not been received.

101. The instructions contained above do not apply to the return of unserviceable and salvaged
vehicles by A.F. Units to Army salvage Depots as such transactions do not require any financial
adjustment. Similarly, no inter-departmental adjustment is required in the case of return of
Class III, IV and V.M.T. Vehicles to Army Ordnance Depots as replacements of such vehicles
are made free.

63
ISSUE TO CIVIL DEPARTMENTS ETC.

102. In the case of issues to Civil departments, etc. it will be seen that:--
(i) no issues of A.F. Stores to Civil departments etc. (except small and urgent issues of equipment
including POL to Civil aircraft in emergency permitted to land at airfields are made without
the concurrence of Air HQrs. and Min of Def (Fin).
(ii) no issues of arms and ammunition are made without the sanction of the Government of
India.
(iii) the rates as laid down in priced lists of A.F. Equipment have been correctly charged and
appropriate departmental charges over the P.V. Rates levied in accordance with the
"Memorandum of instructions" for rates shown in priced vocabularies and that in the case
of issue of articles of the U.S.A. and other Dollar Area origin or Factory manufactured
stores consisting of raw materials drawn from the U.S.A. and Dollar Area, origin or Factory
manufactured stores consisting of raw materials drawn from the U.S.A. and Dollar Area,
additional charges (57.5%) over the P.V. rates promulgated upto 5-6-1966 are added [vide
Government of India, Min. of Def (Fin) letter No. 1/Pricing /AF, dated3-1-67].
(iv) in cases in which P.V. rates are not available, the prices have been obtained from Air HQrs.
(Dte. Of Accounts).
(v) the receipted copies in triplicate of vouchers in question have been passed on to the C.D.A.
(A.F.) by the units and one copy returned by him duly endorsed "Noted for recovery".
(vi) Military Credit Notes etc. used to despatch equipment issued to Army, navy and M.E.S. are
enfaced in red ink as debitable to respective services.

AUDIT CHECKS TO BE EXERCISED ON LOAN TRANSACTION VOUCHERS

103. In the case of vouchers pertaining to loans outward, it will be seen:-

(i) that loans to other Defence Services have been made with the prior sanction of the Chief of
the Air Staff.
(ii) That loans to local Governments Civil Authorities and persons not administered by the
Defence Department and all loans outside India are sanctioned by the Chief of the Air Staff
with the concurrence of Min of Def (Fin) and in the cases of Arms and Ammunition the
loans have been sanctioned by the Govt. Of India.
NOTE:- In emergent cases, where articles are issued on loan on the authority of A.F. Unit Commander
it will be seen that covering sanction of Air HQrs has been obtained.
(iii) that the loaned equipment is returned within the stipulated period as laid down in regulations
and where these are not returned within the period prescribed, sanction for extension of the
period of loan exists or alternatively action is taken to convert the loan issues into payment
issues.
(iv) That any deficiency, depreciation, damage, etc. found in the items on their return from loan
which is ascribed as due to the default of the borrower has been duly charged for in accordance
with the instructions contained in paras 1to 25 Chapter 11 IAP 1501.

64
 (v) that loan ledger action has been taken in respect of all loan issues.
(vi) That the loan vouchers are cross-linked with the relevant [Link] on which the loaned
equipment has been brought on charge and in case of any deficiency or damage, etc. the
adjusting vouchers raised are cross-linked with the original loan vouchers and the loan
ledger has been cleared.
(vii) That in the case of replacement made in lieu of any loaned item returned, the cost of carriage
less the value of the damaged item returned has been charged to the borrower.
(viii) That in the case of loans to non-military departments, public bodies and private individuals
the cost of non-returnable packing cases and containers plus an amount to meet wharfage
and landing charges, where applicable has been recovered. Freight carriage and demurrage
charges, in both directions, have been borne by the borrower; the articles being dispatched
"Freight to Pay" and that on no account military Credit Notes have been used.
(ix) That the ground equipment such as jigs and tools and test equipment issued on loan to
civilian firms for a specific project is returned within the period as specified in the relevant
contract or Government letter:
(x) That recovery of hire and transportation charges etc. where applicable, is correctly made
(for instance, tentage loaned for sports and entertainments).
(xi) That in the case of samples (other than arms and ammunition) issued on loan to civilian
firms, the loan has been issued under authority of the OC the Equipment Depot and that
where attractive and valuable items are issued on loan, adequate security deposit has been
obtained from the firms.
(xii) that in the case of embodiment loans of cloth and material etc. to unit tailor for making up
garments, the issues have been made in accordance with the quantities laid down in Appendix
'G' IAP 1501 etc. and that all loan vouchers are duly cross-referred to the relevant [Link]
on which the made up garments have been brought on charge in the unit stock record card.

REGISTERS MAINTAINED IN EQUIPMENT ACCOUNTS SECTION TO

RECORD PAYMENT AND LOAN TRANSACTIONS

104. The following registers are maintained by the E.A. Section to record payment issues and loan
transactions:-
(i) Register of payment issues to officers and airmen etc.
(ii) Register of payment issues made to Civilian firms, Non-Military Departments, Foreign
Governments etc.
(iii) Register of loans outwards.

AUDIT CHECK TO BE EXERCISED ON THE REGISTERS

105. The above register will be checked to see:-

(i) that all vouchers raised during the period of audit have been duly entered therein and details
correctly transcribed from the vouchers.

65
 (ii) That in the case of payment issue voucher register all entries have been cleared by indicating
the month's cash account in which the amount has been credited to Government and that
there are no cases outstanding. Outstanding cases will be listed in the objection statement
to watch their final clearance.
(iii) In the case of loan registers it will be seen that all entries have been cleared by quotation of
relevant CRVs on which the loaned equipment (in the case of embodiment loans the made
up garments) have been brought on charge. If any loans are not returned on expiry of the
loan periods they will be objected to in audit.
(iv) In the case of the register mentioned at para 104 (ii) above, it is to be seen that the payment
issue vouchers for which recoveries have not been effected locally have been sent by the
unit to the C.D.A. (A.F.)/Air Headquarters as the case may be, citing number and date of the
forwarding memo and the number and date of the C.D.A. (A.F.'s)/Air Headquarters
acknowledgement thereof has been marked against each entry.

VERIFICATION OF CREDITS

106. Payment issue vouchers cleared by cash recovery will be verified into IAFF-1505 received
from unit and duly endorsed as credit verified over the dated initials of the auditor.

MANUSCRIPT INWARD LOAN REGISTER

107. The manuscript inward loan register is maintained to keep a watch over the articles received
on loan and to return them to the party concerned before expiry of the period of loan or to
secure an extension of the loan, if necessary.

The register will be checked to see that -

(a) the entries made therein agree with the loan vouchers received and the period of loan and
the authority for loan, etc. as recorded on the vouchers is transcribed therein.
(b) the relative internal issue/return vouchers, i.e. IAFF (Q) 447/448 have been endorsed for A-
in-U ledger and inward loan ledger action only.
(c) the loans have been returned on the expiry of the loan period and receipted copies of vouchers
related to return of loans are held in the unit. Where not returned, sanction for extension of
the loan period exists.

SECTION 4-AUDIT OF CERTIFICATE RECEIPT VOUCHERS, CERTIFICATE

ISSUE VOUCHERS AND CONVERSION VOUCHERS ETC.

108. Certificate Receipt Vouchers, Certificate Issue Vouchers and Conversion Vouchers are
generally raised to support transactions in the accounts falling within the internal sphere of a
unit. The purposes for which they are generally raised are given in the succeeding paragraphs.

109. [Link]. (Certificate Receipt Vouchers) are raised generally:--

(a) To bring the stores on charge whenever received without issue vouchers or advice notes.

66
 (b) To bring on charge the imported stores received from overseas with reference to packing
account/packing lists etc.
(c) To bring on charge stores found surplus as a result of snap checks etc.
(d) To adjust accounts in the case of discrepancies in consignment of equipment when the
discrepancy is admitted by the consignor.
110. Certificate Issue Vouchers ([Link].) are generally used to support strike off from stock record
cards/tally cards, etc. of:-
(a) Losses of equipment due to enemy action.
(b) Losses/damages to A.F. Equipment as a result of flying accident.
(c) Deficiencies in consignments between A.F. units where the carrier is held responsible for
the loss and the claims are raised against it.
111. A conversion voucher (F. 403) is generally raised:--
(a) To set off surpluses against deficiencies or vice versa of articles corresponding in condition
and quantity under the same generic heading falling within the same section of the vocabulary
of stores: also when the items deficient are of a lower category than the corresponding
surpluses.
(b) To convert the unserviceable stores into salvage.
(c) To support transfer of stores from the charge of one inventory holder to that of another in a
different section of the unit.
(d) To strike off charge the quantities of articles ordered for disposal from the main stock record
cards to the disposal stock record cards and vice versa.
(e) To effect change in denomination of stores held in stock.
(f) To convert the balances of not in GIG items when GIG numbers are allotted.
(g) To adjust accounts when the stores are received in a condition other than in which vouchered.
(h) To adjust losses arising from deterioration of equipment held on the charge of a Stock
Holding Establishment (Equipment Depot, A.S.P. or any other unit where command stocks
are held) as serviceable but found by a competent inspecting officer to be unfit for issue
owing to deterioration while in stock and the deterioration is not due to lack of suitable
storage accommodation or failure to look after the articles properly while in store.
(i) To adjust stock record card/tally card balances when stores of a similar type size or category
have been wrongly identified or conditioned and incorrectly recorded. Such adjustments
are, however, to be supported by the No. and date of the original voucher on which the
equipment was received or issued or incorrectly identified or conditioned which is to be
recorded on the conversion voucher.
(j) To adjust accounts in the case of discrepancies in condition in consignments when the same
is admitted by consignor.

67
CHECK OF CERTIFICATE RECEIPT VOUCHERS

112. Certificate Receipt Vouchers will be checked to see that -

(a) Vouchers falling under the category7 referred to in para 109(a) above are paired with original
issue vouchers received from the consignors and
(b) Those falling under para 109(b) the audit checks as contemplated in paras 75,76 and 77are
exercised.

CHECK OF CERTIFICATE ISSUE VOUCHERS AND CONVERSION VOUCHERS

113. Certificate issue vouchers will be checked to see that:-

(a) they are cross-referred to the relevant Certificate Receipt Vouchers, Receipt Vouchers or
issue vouchers, etc, where necessary and that the strike off action certificate on them is
bonafide.
(b) in the case of strike off of stores due to enemy action, service accidents etc., full particulars
of the circumstances , etc and orders of higher authorities wherever appropriate are recorded
on them.
114. Conversion vouchers will be checked to see that:-
(a) the conversions made are genuine and within the generic heading of the same vocabulary
section (for in stance the various types of rubber tyres, i.e., bicycles tyres, motor bicycle
tyres , tyres M.T. and tyres aeroplanes, fall under the same generic heading on account of
their common structural characteristics , but as they do not fall within the same section as to
their species and variety they are not convertable with one another).
(b) in case of strike off of stores in stock taking holding establishments owing to deterioration
and the deterioration is not due to lack of suitable storage accommodation or failure to look
after the articles properly while in store (Form IAFF(Q) 403/408) raised to adjust the change
in condition of the following certificate, by the competent inspecting officer:-
"Certified that the stores enumerated herein have been found to be unfit for issue owing to
deterioration while in stock and that deterioration is not due to look after the articles properly
while in store".
(c) the stores have been converted to salvage understanding orders or on receipt of specific
orders from Air HQrs. where necessary, and that the resultant produce of stores salvaged or
broken down reasonably represent the correct weight brought on account.
(d) where surpluses/deficiencies have been set off one against the other , they are true and
legitimate as allowed under orders and are borne out by the stock taking records.

AUDIT OF SALVAGE AND PRODUCE BOOK

115. Salvage and produce book is maintained in the salvage section of Equipment Depots. Any
item of Equipment which cannot be broken down forthwith or for which there is no specific
authority for reduction to produce, will be entered in the salvage and produce book together
with full particulars of its receipt in the salvage section.

68
 The book will be checked to see that -

(a) all the relevant IAFF(Q) 408 have been posted therein correctly.

(b) the equipment is converted to salvage under due authority.

(c) the No. and date of the C.R.V. on which the resultant salvage is brought on charge is cross
referred to the relevant IAFF(Q) 408: and
(d) the entry in the book is cleared by insertion of the Certificate Receipt Voucher No. and date
against the relevant item.
(e) the revenue so realized by proceeds of salvage through MSTC/other agencies be deposited
to Govt. account immediately through MRO.

Section 5- AUDIT OF LOSS STATEMENT AND DISCREPANCY REPORT

LOSS GENERAL

116. The general procedure dealing with loss of stores prescribed in Chapter 7, F.R., Part-I Chapter
10,22.23 IAP 1501.A.F. Instructions and supplementary instructions in the various
departmental regulations will be kept in view in auditing transactions on account of Loss.

117. All Losses can be roughly divided into two categories viz. (a) avoidable and (b) unavoidable.

The following types are treated as unavoidable:-

(i) Aeroengines and Air-frames lost or damaged in flying accidents (including items of AF
Equipment carried in such Aircraft on the persons of the occupants thereof) in case where
there is no evidence of contributory negligence or other culpable default.
(ii) Air -frames and Aero-engines and their components and any other items of transferable
equipment deteriorated owing to length of service or unavoidable climatic conditions so as
to be not worth the cost of repair.
(iii) Losses of equipment due to enemy action, where established.
(iv) Losses arising from deterioration of equipment held on charge of stock-holding
establishment(E.D. or any other unit where Command stocks are held) as serviceable but
found by a competent inspecting officer to be unfit for issue owing to deterioration while in
to be unfit for issue owing to deterioration while in stock and the deterioration is not due to
lack of suitable storage accommodation or failure to look after the articles properly while in
stores.
(v) 'A' AND 'B' Class stores deteriorated or expended through fair wear and tear.
118. Barring the above types of losses which are adjusted on CIVs (save those mention at clause
IV of the preceding para which are adjusted on conversion voucher F.(Q) 403 or F.(Q) 408
and those at clause V ibid for which the procedure laid down in paras 35 to 50 Chapter 12 and
para 60 and 61 of Chapter 22 IAP 1501 is followed) all other types of losses and deficiencies
are termed as avoidable and are adjusted on regular loss statement IAFF (Q) 406 in the case

69
 of loss of stores and public money and IAFA497 for all unauthorised expenditure under write
off powers of the appropriate competent financial authorities.

119. Losses for the purpose of write off are subdivided into two category {a} Losses of equipment
due to theft, fraud and culpable neglect and {b} losses of equipment not due to theft, fraud
and culpable neglect. They are to be dealt with by the appropriate sanctioning authority
under the financial powers assigned to them for each category in the FR Part I as amended
from time to time.

Government of India have delegated powers to dispose of audit objection arising out of
breaches of rules and regulations without reference to them. These powers are given in
Schedule XII , Appendix II , Part III {AF} of FR Part I. These powers are to be exercised by
the competent financial authorities after obtaining audit report from CDA/LAO{AF} according
as the cases cum within the purview of Air Hqrs / Command Hqrs /OC Station. Cases of
irregularities which involve no loss or the monitory value of the loss is not accessible , may
depending on the nature of irregularity, be regularized by the AOC-in-C as Technical and
Non-financial losses . An illustrative list of cases of Technical and Non-financial objections
is given in Appendix "E" to AFO No. 210/77 as amended from time to time.

120. In auditing loss statements the following points will be seen :-

(i) that loss Statement have been raised to account for loss of stores in all cases, where necessary
and have been correctly prepared.
(ii) that no breach of accounting rules had contributed to the loss.
(iii) that the loss had been properly investigated according to rules.
(iv) the remedial measures and/or the disciplinary action suggested by the administrative
authorities are adequate and satisfactory.
(v) that all the loss statements have been recorded by the unit in the Register of losses - FORM
{F}1521.
(vi) that they have been sanctioned by the competent financial authority
(vii) that in reckoning the gross amount , the amount involved has not been sub-divided with a
view to bringing the amount of loss with the financial powers of the authority lower than
the one who is competent to sanction the gross amount of the loss.
(viii) that all losses particularly those attributable to theft, fraud or culpable neglect have been
fully investigated without any avoidable delay
NOTE :- Only those losses which have resulted from gross neglect on the part of the individual /
individuals responsible for the stores should be classified as due to neglect and dealt with as such.
(ix) that a regular court of inquiry has been held to investigate into all important losses and
those due to theft, fraud, culpable neglect.
NOTE:-1. The holding a court of inquiry , may , at the discretion of the competent financial
authorities, be dispensed with in cases of losses of stores where the loss is not due to theft, fraud or
neglect or where the reported loss due to theft , fraud or neglect is less then Rs. 10,000/-.

70
NOTE:- 2. The convening of Court of Inquiry may be dispensed with by the Competent Financial
Authority in cases where the loss is estimated to be less then rupee 1000/- in the case of loss of
public money unless there are any circumstances with the loss which are not clear or which demand
special investigation.

NOTE3 :- In cases of losses of or damages to the Defence Stores which may occur while the
stores are in transit by sea or while this are lying in the custody of port authorities prior to their
delivery being taken by the defence authorities , holding of inquiry may not normally be necessary
either at Embarkation Hqrs end or at the consignees end in the following circumstances also , even
if the value of loss /damage exceed Rs. 1000/- {Rupees One thousand only}.
(a) Where the stores are short landed :
(b) Where the store are lost after landing from the ship while in the custody of the carriers or the
port authorities ; and

(c) Where a package or its contents are found damaged or pilfered either on landing from the
ship or while the custody of the port authorities.

(d) Where a claim is accepted by the carrier /port authorities to their maximum liability, or where
such a claim is settled at a lesser amount with the prior approval of the Government provided
that -
(i) appropriate action in each case has been taken by Emb. Hqrs for purposes of making necessary
claim
(ii) Prompt action has been taken to make a report to the police for investigation regarding {b}
&{c} above, where loss or pilfering noticed.
(iii) A marine survey has been demanded and held within the prescribed period in the presence
of the carrier port authorities and consignees representative as regards damage to packages
and their contents are shortages, before the stores are taken over by the defence authorities,
or if marine survey could not be held, the cargo is removed and taken in custody of the
defence authorities after carrying out a departmental survey by a Board of Officers in the
presence of a representatives of the Port authorities.
(x) that the loss is real one and not fictitious .
(xi) that the loss statement is supported by the following :
(i) proceeding of court of inquiry, if applicable
(ii) Statement of the case containing the information on the following points when the loss
requires Government sanction
(a) How did it happen ?
(b) When did it happen ?
(c) Why did it happen ?
(d) When & how was it detected - Whether by internal audit or statutory audit ?

71
 (e) Could it happen again and if so , what remedial measures have been taken /are proposed
to be taken?
(f) Was a Court of Inquiry held, if not , why not ?
(g) Was {were} any individual{s} held responsible, if not, why not ?
(h) Was any disciplinary action taken or contemplated {name of the individual, rank and
the nature of disciplinary action taken should be stated} and if not , why not ?
(xii) that the original copy of the loss statement bears the signature of the Competent Financial
Authority in ink and the date on which the loss statement has been sanctioned is shown
therein.

(xiii) that the amount of loss exhibited in the loss statement is correctly assessed in accordance
with instruction contained in Paras 05 to 13 ,Chapter 23 IAP-1501

(xiv) that when it is decided by the appropriate authority that an individual{s} is /are to be charged
partially for the loss , damages , etc, the amount has been correctly charged on IAFF{Q}-
440{b}and the number of the recovery voucher quoted on the IAFF{Q}-406 if raised. For
determining the Competent Financial Authority the loss amount of the loss is to be taken into
account, even though a part of the amount is recovered from the individual.

(xv) that losses of various classes of stores due to one and same incident /cause , e.g. theft, fire
explosion , etc are written off in one loss statement.

NOTE :- If, however, the stores, involved pertain to different unit, separate loss statement will be
required to regularized the loss in respect of stores held on charge of each units. The Competent
Financial Authority is determined with reference to the value of loss in each unit.

(xvi) that in cases where losses are sanctioned by subordinate officer on behalf of the Competent
Financial Authority necessary authorization under Rule 65 FR Part I has been communicated
to the audit officers intimating the name of officer together with his specimen signatures.

(xvii)any tendency to charge losses to state as a matter of course or to treat the maximum loss up
the prescribed % should, if necessary, be brought to the notice of CDA {AF}.

(xviii) if the same reason are repeated every time for the write off losses {e.g. shortage of
accommodation} the attention of the authorities concern should be drawn to the fact.

LOSSES ON ACCOUNT OF DETERIORATION OF EQUIPMENT IN STORES

121. In case of loss statement raised on account of deterioration of equipment in store at units
other than equipment depots due to {a } "Chemical " such as corrosion, {b} "Climate"{direct
effect of sun and rain}, {c} ineffective or defective application of or failure of the specified
method of cleaning, preservation, packaging , {d} Biological causes such as mildew and
other pests , it will be seen that the inspecting officer's report together with CO's remarks as
to the satisfactory storage condition and recommendation for prevention of similar
deterioration in future are attached with loss statement , and the loss statement is duly

72
 sanctioned by the competent financial authority . It will be further seen that the loss statement
is cross-linked and one copy has been filed with relevant conversion voucher IAFF{Q}-403
on which the converted stores have been struck off/brought on charge.

LOSSES ON ACCOUNT OF DETERIORATION IN ST

DETERIORATION ORES AT EDs
STORES

122. Losses on account of deterioration of equipment while in store in stock holding Establishment,
{ED or any other unit where Command stocks are held} are to be dealt with as follows :-
(a) When equipment held on charge as serviceable is found by Competent Inspecting Officer
or Board of Officers, {where the value of any one item of stores exceeds Rs. 25000/-} to be
unfit for issue owing to deterioration in stock and the deterioration is not due to lack of
suitable storage , accommodation or failure to look after the articles properly while in store,
the account to be adjusted by means of conversion voucher FQ 403/408 without recording
the change in condition as loss. FQ 403/408 raised to adjust the change in condition are to
be invariably endorsed with the prescribed certificate by the Competent Inspecting Officer/
Board Member IAFF {Q}406 is required to be raised in such cases. In audit, it will be
ensured that in cases of this nature, the required certificate is duly endorsed by the Competent
Inspecting Officer etc. on F.Q. 403/408.
(b) All other cases will be termed as losses and will be written off or regularized under orders
of the competent financial authorities under normal rules.

LOSSES IN TRANSIT

123. In case of losses in transit excluding the exceptions mentioned in para 2 , Chapter 10, IAP-
1501, it is normally the responsibility of the consignee unit to obtain write off authority in
those cases in which the shortage , etc. in the inland consignment received is not admitted by
the consignor or where the carrying agency does not accept liability for the same. In auditing
IAFF{Q} 406 raised of this account, it will be seen that -
(i) before raising the loss statements, discrepancy reports have been duly raised in all cases in
which loss or damage is :-
a. attributable to known or suspected theft, fraud, arson or gross carelessness ;
b. One of the series of losses from the same source
c. Clearly the responsibility of the contractor.
d. of a nature which in the opinion of the consignee should be brought to notice.
e. in excess of the monetary limit prescribed in para 03 of Chapter 10, IAP 1501.
(ii) the relevant discrepancy report is duly endorsed "not admitted by the consignor" and
substantiated with a statement giving full reasons for not admitting it together with any
useful information in connection with the discrepancy.
(iii) the original copy of the discrepancy report is attached to the relevant receipt voucher/CRV
duly endorsed with the issue voucher number of adjusting IAFF {Q}-406.

73
 (iv) the duplicate copy of the discrepancy report is endorsed with the particulars contained in
the original copy of the discrepancy reports to support the clearance of the entry from the
discrepancy reports register.

LOSSES IN FOREIGN CONSIGNMENTS

124. (a) Under Para 94, Chapter 38, Part II, IAP-1501 stores received from overseas are brought on
charge by the consignee units as actually received and not as involved. In respect of packages
short landed or discharged ex-ship in a damaged condition at the port, the Embarkation
Commandant is responsible for preferring the claim against the carriers {Shipping agents}
and for their finalization. The particulars of such claim are communicated by him, both to
the consignee in India and the C.D.A. of the Port. No further action in respect of such loss
devolves on the consignee. In regard to discrepancy in foreign consignments, discovered at
the Depot/Units discrepancy reports are raised in accordance with the procedure prescribed
in Para 93, Chapter 38, Part -II, IAP-1501. It will be seen in local audit that necessary
discrepancy reports have been raised within the prescribed time limits, copies sent to Air
Hqrs and acknowledged by them. In the case of "Full Standard Packs" which are not be un
packed before the prescribed period of two years from the date of packing it should be
ensured that DRs have been raised and progressed with reference to the provisions of Para
94, Chapter 38, Part II IAP-1501. In case of consignments received from Air Ministry in
UK by consuming units direct, DRs to be raised and progressed in accordance with Para 27-
A, Chapter 10, IAP-1501.
(b) It will also be seen in Local Audit that all DRs raised by the Depots/Units have been properly
entered in the Foreign Discrepancy Report Registers maintained for the purpose and their
finalization watched through the register. It will also be ensured in local audit that the
Foreign Discrepancy Report Register is suitably annotated by the unit authorities on receipt
of a copy of Air Hqrs. letter addressed to DGS&D, London, ISM Washington etc and prompt
action taken towards finalization of DRs on receipt of final advice from Air Hqrs. Where
the DR on the overseas suppliers has not been accepted wholly or partially, the value of
discrepancy is regularized as Cash Loss. However where a consignment received from
abroad has been dispatched by the embarkation authority to the consignee unit by rail and
the loss is attributable to railways, but the latter have not accepted the claims wholly or
partially, the loss will be regularized as store loss in accordance with Government of India,
Ministry of Defence letter No. F.17/56/D {Budget} dated 09-01-1956 reproduced as
Appendix to AFO 29/74 as amended from time to time.

ACTION ON LOCAL AUDIT COPIES OF LOSS STATEMENT

125. (a) In accordance with the provisions of para 5 (b) (iii), Chapter 22, IAP-1501 a copy of each
loss statement sanctioned by the C.O. or by the higher authorities is to be furnished to the
LAO. During Local Audit, these copies will be paired to see that they agree in every detail
with the relevant original sanctioned copies of the loss statements held in the E.A. Section.
It is to be ensured that in respect of cases where audit reports have to be invariably obtained,
such reports were actually called for and rendered and the loss statement will be linked with
the relevant audit report before the same is filed. It will further be ensured that copies of all
loss statements finalised during the period of Audit have been received. Those found to

74
 have not been received will be called for through the objection statement. A record will
also be kept in the objection statement of all loss statements which are pending finalisation
and their final clearance will be watched. The sanctioned loss statements will be recorded
in detail in the register of losses. (IAF CDA 341) maintained by the LAOs (AF) for
preparation of statement of losses to be included in the Appropriation Accounts. For detailed
instructions see Appendix IX to this manual.
(b) Similar action will be taken in respect of cash losses as provided for above for store losses
except that the sanctioned loss statements will be recorded in detail in the register of losses
IAF (CDA) 182. For detailed instructions see Appendix IX to this Manual.

AUDIT REPORT

126. Before according write off sanction, the competent financial authority in each case is required
to obtain an audit report from the CDA (AF) / L.A.O. (AF) as the case may be. In all cases
which require write off/write down sanction but have not been investigated by a court of
inquiry, audit reports are rendered by the [Link]. (AF) to the Command HQrs. and the losses
are written off by AOC-in-C Command if falling within his financial powers. In all cases
where Chief of Air Staff/Air HQRS. exercise the powers to write off losses with the
concurrence of IFA (Air HQrs.), IFA (Air Hqrs.) will deal with such cases of losses and
consider concurring with the recommendation for write off based on Audit Reports of LAO
(AF) and the views of Air HQrs./Court of Inquiry proceedings. In exceptional cases of doubts,
the IFA (Air HQrs.), after scrutinizing such proposals for write off of losses and before
concurring with recommendation of Air HQrs, may refer the matter to Cs DA (AF) and Joint
CDA(AF) Nagpur as the case may be for their expert opinion or do back reference to the
concerned LAO (AF) where necessary for illiciting more information. However, in cases
where losses are to be written off with the approval of Min of Def.(Fin.), the audit report
would continue to be rendered by the PCDA(AF) to Air Hqrs. as hithertofore. [Link](AF)
Nagpur will render final audit report in cases of regularization of losses requiring sanction of
Min. of Def. in respect of HQrs. MC, HQrs. TC and HQrs. Southern Air Command.

NOTE : (I) Insofar as losses falling within the financial powers of [Link] of A.F. Units are concerned,
no audit report is being obtained.
(ii) In Flying Accidents due to Strike Off cases, price check and preliminary audit report will
be rendered by the concerned LAO(AF) and final audit report will be rendered by the CDA
(AF) New Delhi. However, in Write Off cases, the concerned LAO(AF) will do the pricing
check only and the final audit report will be rendered by the CDA(AF) New Delhi.

CHECK OF LOSS STATEMENT REGISTER

127. The loss statement register (Form (F) - 1521) held by the E.A. Sanction will be checked to
verify that all loss statements have been entered therein and it will be seen that all cases
under reference to higher authorities are suitably expedited by that sanction.

75
CHECK OF DISCREPANCY REPORTS & D.R. (OUT) REGISTER

128. In the audit of [Link]. (Out) it will be seen that -

(i) They are raised without any undue delay after the receipt of consignments, indicating
particularly (a) the date of receipt of consignment at depot / unit, (b) the date of unpacking
thereof and (c) suitable explanation for the delay, if any, between the date of receipt and
date of opening of the consignment.
(ii) Other instructions contained in Chapter 10, IAP-1501 and in any other orders issued from
time to time for the raising of discrepancy reports in the case of inland and foreign
consignments have been duly complied with;
(iii) Their clearance is suitably watched and expedited.
129. The [Link] (Out) register will be checked to see (a) that all discrepancy reports raised have
been entered therein and cleared under suitable remarks which should be verified by reference
to relevant form (IAFF (Q) 406 etc.) and (b) that there are no uncleared discrepancy reports.

130. All cases outstanding discrepancy reports will be brought to the notice of the C.O. through
the observation statement for necessary expending action.

MANUSCRIPT REGISTER OF DESCREPANCY REPORT (INWARD)

131. The register will be maintained on the same lines as the register for discrepancy reports
(outward). The register will be scrutinised to see that: --
(i) The discrepancies reported by the consignee units are attended to promptly and cleared
expeditiously. Cases where the DR 'in' is pending for an appreciable period, say over six
weeks, will be brought to the notice of CO through a special communication. If effective
action is not taken even thereafter, the matter will be reported to Command Hqrs. The
consignor LAO will not however, raise format objections on outstanding DRs 'in'.
(ii) Wherever the DR is accepted by the consignor, the adjustment voucher raised by the Logistic
Officer, agreeably to para-38, Chapter 10, IAP 1501 is in order, and a loss statement has
been raised, wherever necessary. Sanction of the loss statement will be watched in the
normal manner. Cases where a loss statement is necessary, but has not been raised, will be
placed under objection.
(iii) Any surpluses receipt of equipment reported by a consignee unit is not charged off the tally
cards /stock record cards as a matter of course, without stock-taking of the item concerned;
and, if stock-taking of the item had been carried out already, subsequent to the issue, no
strike off is allowed.
(b) The DRs (IN) Register will also be subjected to critical overall scrutiny, to detect
significant features, if any e.g. (i) whether large scale discrepancies have been reported
by one and the same consignee over a period of time, or by several consignees for the
same item; (ii) damages in transit reported in respect of the same type of equipment,
due to faulty packing etc. by the same or different consignee units. Such unsatisfactory
features will be brought to the notice of the CO through a special report, without

76
 raising a formal objection. Important cases involving appreciable value will be reported
to the main office, with full particulars.

SECTION 6 - AUDIT OF FREE ISSUES OF EQUIPMENT (INCLUDING

REPLACEMENT ISSUES) AND ISSUES OF EQUIPMENT MADE TO
WORKSHOPS ETC. FOR MANUFACTURE OF REPAIR ETC. TO EQUIPMENT
CATEGORIES OF A.F. EQUIPMENT
132. (a) All free issues of equipment (excluding free issues of Public and initial issues of personal
clothing to airmen) are normally made on IAFF (Q) 447 (internal demand and issue vouchers).
For this purpose, the equipment is classified in three categories viz. 'A', 'B' and 'C' class
(See item No. 3 of Glossary of terms, IAP-1501).
(b) All replacement issues of 'A' & 'B' class stores (excluding replacement issues of public
clothing to airmen) are normally made on IAFF (Q) 446 (internal exchange vouchers).
However, when immediate exchange cannot be made due to non-availability of the
serviceable item, repairable etc. item may be returned to main stores on IAFF (Q) 448
pending exchange.
(c) As the items replaced on Form IAFF (Q) 446 are in lieu of the items of the same description
(i.e. same Section/ Reference No.) returned by the flights and sections, these vouchers do
not affect the balance of the inventories and are not to be posted in A-in-U register. In case
of major items of equipment like wireless sets., MT Vehicles, Air Frame, Aero-engine,
typewriter, bicycle etc., where the serial No. of equipment of the item issued is required to
be recorded in the ledger IAFF (Q) 447 are cross-linked with the relevant IAFF (Q) 448.
(d) Initial issues and free replacement issues of items of public clothing to airmen are made on
IAFF(Q) 441.
(e) Certain issues of equipment are made to unit workshops on IAFF (Q)-447 for manufacture
of /repair, etc. to equipment, which are required to be annotated with the relevant master job
number and are to be cross referred to the forms IAFF (Q) 448 by which the equipment is
returned to the Equipment Section.
133. In the case of issues made on IAFF (Q) 447 it will be further seen that -
(a) The tools and appliances required by sections and flights for their work are within the
authorized current scales (as published from time to time).
(b) In the case of issues for replacement of losses IAFF
(Q) 447 are duly cross-linked with the relevant IAFF (Q) 406/IAFF (Q) 440 B.
(c) the issues made for items included in Air frame checking lists/vehicle guide list are within
the authorized scales.
(d) in the case of issues of 'C' Class stores:-
(i) the purpose for which required is stated:
(ii) stores drawn for repair, etc. of a particular vehicle, machine, etc. the number of the
vehicle etc, and also the nature of repair required thereto is clearly stated:

77
 (iii) Only actual quantities required for the repair and manufacture of article of equipment
in workshop are drawn :
(iv) The cleaning material drawn do not exceed a month's requirement and are generally
restricted month's requirement and are generally restricted to the minimum
requirements within the scale approved by the C.O. of the unit:
(v) No unusual item for cleaning purposes is issued to any section unless specifically
authorized:
(vi) Items of equipment required for offices, e.g. towels, soap, jugs, padlocks, etc. the cost
of which is to be met from the units stores, are issued on F. 431 ( which are to be
priced at free issue rates ) and vouchers are prominently enfaced in red ink " Debitable
to contingent grant".
(vii) Attractive types of stores mentioned in the list attached at the end of Chapter 24 IAP-
1501 are duly accounted for through expense book maintained in which full details
for their consumption are kept:
(viii) The stores for which definite scales of issue are laid down such as issue of curtain
mosquito nets for families. Issue of crockery and utensils for messes, cooks clothing
etc. are restricted to the prescribed scales. :
(ix) Where quantities of 'C' Class stores used on a job are substantial or such stores are
valuable and attractive those are demanded specifically for the job and the number of
F(Q) 401 or the job number is quoted.
134. In checking of IAFF (Q) 446 and IAFF (Q) 448 it will be seen that-
(a) the vouchers are prepared correctly and the 'A" and 'B' class stores exchanged are of precisely
the same description (i.e. same section reference No. as returned)':;
(b) the condition of the equipment returned viz, category 'D' or 'E' is invariably stated ( as
determined by the Inspecting specialist officer):
(c) The stores returned /exchanged have been certified as depreciated due to normal fair wear
and tear;
(d) Any other reason for exchange/return is clearly stated.
135. In regard to initial issues and replacement issues of public clothing made to airmen or IAFF
(Q) 441 it will be seen that :-
(a) In the case of initial issues and replacement issues of public Clothing, necessaries etc. to
airmen and NCs(E) these are within the authorized scales.
(b) New articles of public clothing are not issued when part worn articles of suitable sizes are
available.
(c) The issues are correctly transcribed into F.Q. 466.
(d) The vouchers are certified by the witnessing officer/W.O. and are signed by the recipients
against their names in the Vouchers.

78
 (e) The exchanges of public Clothing are invariably made in regularly organised clothing parades
and casual exchanges are resorted to only in exceptional circumstances. The exchanges
have been made with due regard to the serviceable life prescribed by Government as notified
in AFO issued from time to time.
(f) In the case of non effective personnel (discharged or dismissed) all items of public clothing
except those mentioned in pare 91, chapter 15, IAP 1501 and other Government orders and
such of the items of personal clothing as are required to be withdrawn under the rules
depending upon the length of service rendered are returned to stores and deficiencies and
damages, if any, are dealt with on IAFF (Q) 443-B.
(g) In the case of airmen transferred to the regular A.F. reserve, at the time of discharge and
return after reservists training, all items of public and personal clothing as recorded in both
the copies of F.Q.466 are returned to stores and deficiencies have been charged for at prices
assessed on the basis of un-expired life of the items.
NOTE- On Completion of training by the reservists it will be ensured that the reservists Kit is returned
to store every year except on completion of reserve period when all articles of personal clothing and
necessaries (except Badges and Buttons) may be retained by Airmen but payment issues of clothing and
necessaries will not be permitted.
(h) Kit of airmen selected for Commission is withdrawn and deposited at Air Force Colleges in
the Kit store on IAFF (Q) 402. On successful completion of training all items of public
clothing of the airmen are to be brought on chare and IAFF (Q) 402 cleared; personal
clothing is to be dealt with in accordance with provisions contained in paras 81 to 84,
chapter 15, IAP-1501.
NOTE- In the case of an airman Flight cadet, who on being disqualified, reverts to the ranks, it will
be ensured that he is kitted with the same set of public and personal clothing which was withdrawn
from him at the time of his selection as a Flight Cadet. If the airmen desire to be discharged, his kit will
be dealt with as mentioned above.
(i) In the case of Flight Cadets rejected from ground training, the kit is withdrawn and
auctioned in the normal manner. \
(j) In the case of Flight Cadets rejected from flying training (irrespective of the fact whether he
has been recommended for navigational training or not ) as well as ground duty branches
whose cadetship is terminated on medical ground, the Kit is disposed of in accordance with
AFO 43/69 as amended from time to time.
(k) In the case of protective clothing and equipment issued to personnel employed for malaria
eradication purposes, the issues are covered under the prescribed scales. Vide Appx, 'C' to
AFO 227/69 as amended from time to time.
(l) Kit of airmen posted to PHS at IAF station, New Delhi as N/E sick and N/E deserter is
disposed of in accordance with AFO 167/74 as amended from time to time.
(m) Only un-serviceable Great Coats are issued to Civilian Chowkidars.
136. When it is noticed that the exchanges of any item (items) are made too frequently than
necessary, the LAO may check from higher audit point of view the F (Q) 441 retrospectively

79
 over a year or so to ascertain that no abuse of the existing rules for issue is made. In case any
instances are noticed, in which the replacements made are obviously excessive, he may bring
the matter to the notice of the higher authorities and the C.D.A.(A.F).

AUDIT OF KIT INVENTORY- F(Q) 466

137. From the Form IAFF (Q) 441 on which initial issues of personal and public clothing and
accoutrements are made IAFF (Q) 466 (Kit inventory) is raised for each Airmen and air craft
apprentices. Kit Inventory will be checked through EQUOLS to see that :-
(a) initial issues of clothing made in accordance with the scale laid down in IAP-1503,Part "C"
scale C1 C2 and [Link] duly been recorded against the items issued.
(b) They are held in respect of all airmen /aircraft apprentices born on the posted strength.
(c) Subsequent issues/exchanges and return of items of clothing are correctly recorded showing
date of issue and return.
(d) In respect of items of clothing for which life has been prescribed, issues on payment of
personal items of clothing and exchanges of public item of clothing have not been made
before expiry of laid down life worked out with reference to date of previous issues/exchange.

FLYING CLOTHING CARDS

138. Flying clothing cards IAFF (Q) 443-B will be checked to see:-
(i) That the items of flying clothing by air crew personnel are covered by the prescribed scales
and do not exceed the number authorized.
(ii) That all the articles recorded therein as issued are supported by the number and date of
internal issue voucher and signed by the recipient in an acknowledgement of receipt.
(iii) that all the withdrawals are similarly supported by number and date of internal receipt voucher
on which the articles were returned and entry is made over the signature of the accountant
officer of the unit.
(iv) that the clothing card stamped, dated and signed by the accountant officer
(v) That in the case of loss of an original card "Substitute card" raised is supported by the
written declaration of officer/airman concerned.
139. The list of flying clothing cards IAFF (Q) 443-B generated through EQUOLS, will be verified
to see that it includes all officers and airman of air crew branch.

140. Apart from the normal checks to be exercised on vouchers as laid down in Para 87 of this
manual, the vouchers relating to issues and return of articles of flying clothing affecting
flying clothing cards will be checked to ensure
(i) that all the issues are invariable endorsed to the effect for " F(Q)-443-B action taken".
(ii) That the issues relating to the month selected for detail audit are recorded in the flying
clothing card.

80
CAMP KIT REGISTER
141. The items of camp kit which are issue-able to an officer are enumerated in Para- 32 chapter
14, IAP-1501.A camp kit register for all IAF Officers is centrally maintained at number at 23
ED. This is checked to see that :-
(a) The register is maintained strictly in alphabetical order to guard against any double issue
being made.
(b) Each issue or replacement issue is supported by triplicate copy of IAFF ( Q) 431 showing
the following details
(i) Full name and service number of the officer.
(ii) The date of first appointment to a commission , calling up for service or reemployment.
(iii) a certificate in the following form signed by the applicant and counter signed by the
CO.
"Certified that ……………Rank………………….Name……………of the
………………….has not been issued with a camp kit or an allowance in lieu at any
time during fifteen years presiding the date of first appointment to a commission,
calling up for service or re employment ".
(iv) In the case of replacement issues of camp kit lost through exigencies of the service, F
-431 is further annotated" replacement issues" and the number and date of Air Head
quarter sanctioning the replacement is cited therein.
(v) In the case of officers who are not confirmed in the rank, issue of a camp kit is recorded
in their pay books and relevant IAFF (Q) 431 is endorsed for " pay book action" if
such an officer becomes non effective without being confirmed in rank, camp kit is
returned to store on F (Q) 447 duly endorsed "pay book action ".the camp kit is
forwarded to 23 ED for amendment of the entry in their alphabetical index register.
As an exception, however the articles of camp kit are not to be withdrawn from the
officer who is confirmed in rank beaming non-effective.
(vi) Where, after receipt of camp kit , for an officer, the unit is unable to issue the same ,
the camp kit is returned on F (Q) 429 to 23 ED, notifying them of the dispatch details
by post. When an officer for whom camp kit is received has already moved to another
unit, the camp kit is sent to new unit on F (Q) 429 attaching all the copies of F( Q)
[Link] equipment officer of the new unit will after bringing on charge issue the same
to the officer concerned on F (Q) 431 duly endorsed for "Pay book action"
(vii) No repairable or serviceable component of the camp kit is exchanged free.

AUDIT OF ARTICLES IN USE LEDGER

142. As the tally cards/Stock records card exhibits the stocks in stores with the equipment officer,
this ledger shows the stock in use with the various flights/section of the unit. As it is the basis
for check of the inventories kept be flights/section, its correct maintenance is of paramount
importance. It will be seen that

81
 (i) It is posted up to date.
(ii) All inventories are approved by the accountant officer.
(iii) A list of all inventory holders is posted and appeared through EQUOLS indicating their
inventory number.
(iv) The inventory holder and designation of the flight or section is inserted at the top of each
sheet.
(v) The columns of ledger sheet are headed with the section reference number and nomenclature
of various items of equipment held and section and reference number are inserted
(vi) Items of different vocabulary sections do not appear in the same sheet. Ledger sheet are
annotated properly, the authority and scale applicable to each flight/section.
(vii) The holdings by flight/section do not exceed the scales prescribed.
(viii) All articles of "A" and "B" class equipment issued to various flight /section etc. are brought
on charge in the article in use ledger as soon as the y are struck of charge from the stock
record cards.
(ix) All the inventories are corrected up to date and the prescribed checks(periodical or
independent) vide chapter 12 IAP1501 have been carried out and necessary adjustment of
deficiency etc are properly made.
(x) In addition to Article In use ledger in respect of rotables a card index is maintained of full
range of rotable to facilitate the census of such items and
(xi) Stores issued in connection with seasonable requirements, such as extra blanket in winter
etc. are withdrawn from use and returned to the main stores on the expiry of season.

Section 7- CHECK OF CASU

CASUALAL AND L OCAL PUR
LOCAL CHASE VOUCHERS IAFF
PURCHASE
(Q) 423 AND L OCAL SER
LOCAL VICE CONTRA
SERVICE CTS
CTS..
CONTRACTS

LOCAL PURCHASE OF EQUIPMENT

143. Local purchase of authorised items of A.F. equipment is made by Commanding Officers of
self-accounting units/Wings/Stations upto the limits of financial powers Authorised in
Rule147,[Link] I, read in conjunction with schedule VIII of Appendix II, Part III, Air Force(List
of financial powers) or under sanction of higher competent financial authorities when they
are urgently required and then only after it has been ascertained that supplies are either not
available in unit store or cannot be expeditiously obtained from normal source of supplies.
In addition they are also authorised to purchase locally of the commercially available items
mentioned in Appendix "A" to government letter NO. Air HQ/32350/18/E.14/7418/D(Civ-
I), dated 7-7-69 reproduced in AFO 357/69 as amended from time to time. Quotations are to
be invited from at least three reliable firms in the area when the value of a prospective purchase
is more than Rs 15,000 and purchase is to be made only in open tender system if the amount
is more than Rs.1,00,000.

82
NOTE:- In case of local purchase of contingent items, the financial powers as laid down in Rule
59 and Appendix II, Schedule I, Part III (A.F) F.R. Part I as amended by current A.F. Instructions
are exercised.

AUDIT OF L OCAL PUR

LOCAL CHASE BILLS-RESPONSIBILITY OF LA
PURCHASE Os
LAOs
VIS-A-VIS AUDIT SECTIONS OF C .D
C.D .A.(AIR FOR
.D.A.(AIR CE)
FORCE)
144. Local purchase vouchers IAFF(Q) 423 are allotted A and I Note series Nos.(note No) from
the A and I. Note register maintained by the Accountant Officer. The duplicate copies thereof
are filed in the Equipment Accounts Section, separately from other types of vouchers. Payment
to Contractors is admitted by the C.D.A.(A.F.) on the authority of original copies of IAFF(Q)
423. Necessary check over these claims as regards the reasonableness of the rates and
competency of the authority sanctioning the purchase of stores etc., is carried out by the
Store Audit Section of C.D.A.(AF) and any irregularity noticed thereon is pursued through
the objection statement issued by the Audit Section of C.D.A.(AF). After post audit IAFF(Q)
423 are scheduled to LAOs for verification of credit of stores purchased in the tally cards/
stock record cards/dead stock register of the unit concerned. The local purchase vouchers
(duly endorsed) after linking to the prescribed extent by the auditors and test checked by the
ALAOs and LAOs will be finally recorded in the local audit office.

In addition to linking it is also to be ensured that the local purchase is justified with reference
to the holding in the SSRC/Tally card and that the items are issued immediately to the
Flight/Section concerned.

Similarly the vouchers relating to hiring of civil transport viz, (i) contingent bill (IAFA-115)
(ii) Truck In/Out sheet (IAF(Q)-492) and (iii) requisition for Govt. transport received from
the store audit section of PCDA(AF0 are linked in Unit ledger/records and prescribed audit
checks as laid down in para 194-A exercised by the auditors and checked by the SO(A)/AAO
and LAOs (AF).

NOTE:-Any point which may come to the notice of LAOs during the course of linking of local
purchase vouchers which they consider has been overlooked by the Audit Section of CDA's office
may be reported by them to the section concerned for taking up the matter with the unit concerned.
Such points should not be referred by LAOs direct to units.

TYPES OF LOCAL CONTRACTS

145. On the Air Force side contracts are concluded by Officer Commanding stations for domestic
services as given below:-
(a) Tailoring and alteration of airmen's public clothing.
(b) Washing and dry cleaning of airmen's service clothing and of Barrack and
station sick quarters.
(c) Flight cadets tailoring contracts at A.F. College.

83
 (d) Messing.
(e) Conservancy.
(f) Condiments contracts.
(g) Grass cutting.
(h) Any other services authorised by Air HQrs., e.g., Book repairs, etc.

AUDIT OF LOCAL CONTRACTS

146. The important points to be seen in the check of tenders, contracts, etc., are as under. These
checks will be exercised by the LOAs (AF) in the particular Half year in which a copy of the
intimation returning the contract to the unit /formation after post scrutiny by the audit sections
concerned is received by them or in the Half year following. It will be seen:-
(i) that tenders have been issued on standard from viz., IAFF(Q) 411 to approved contractors /
firms only and for this purpose a register has been maintained showing the names of approved
contractors;
(ii) that tenders are correctly completed and are in the prescribed forms and no unauthorised
alterations have been made therein;
(iii) that tenders were issued sufficiently in advance;
(iv) that the time-table laid down in para14,Chapter 26, IAP-1501 was adhered to as far as
practicable ;
(v) that before inviting tenders , the widest publicity was given through local press or through
civil authorities. If this was not possible, healthy competition was resorted to through other
means.
(vi) That the tenders ,etc. have been signed by the contractors or by one of their accredited
representatives holding necessary power of attorney to do so;
(vii) That in case of a tenderer who cannot sign, his left hand thumb impression on the tenders
etc., is taken and is duly supported by the signature of a witness;
(viii) That the tenders have been numbered consecutively and duly initialed and dated by the two
officers, deputed by the C.O. for the purpose;
(ix) That all the tenders received (including those rejected ab initio for one reason or another)
have been correctly transcribed into the schedule of tenders IAFF(Q) 513 and the following
certificate in terms of para 18,Chapter 26,IAP 1501 has been entered therein:-
"We hereby certify that the abovementioned tenders are the only ones received in time, and that they
were opened by us at the time and on the day appointed and scheduled hereon in detail by one of us in
the presence of the others."
(x) That earnest money has been received with each tender;
(xi) That the rejected tenders are checked to ensure that the tenders stated to be the lowest is in
fact so. In cases where a tender other than the lowest has been accepted, suitable reasons
therefore have been adduced.

84
 (xii) That in case of tenders where value had been assessed in detail on the basis of the use made
of the preceding contracts, the schedule of tenders contains two additional columns, showing
the monthly bill, as it would have been over two specimen months , one for winter and the
other for summer month or other appropriate varied times to serve as a guide in deciding
which was the lowest over the whole period;
(xiii) That in case of units located in an area where healthy competition was not possible or
feasible and only one contractor was available to be invited to tender , the sole tender was
forwarded to Command Headquarters for approval in relation to current prices prevailing
in neighbouring stations and /or in the local market as ascertained from the Civil/Cantt.
authorities;
(xiv) That any concessions are not given to contractor through letters but specific provision in
this behalf has been made in the agreement itself or supplementary agreement is executed,
if need be.
(xv) Any other specific point intimated by Audit Section of PCDA (AF)/ CDA (AF).

AUDIT OF COMPARATIVE STATEMENTS OF TENDERS

147. The comparative statement of tenders IAFF(Q) 513 will be checked to see that -

(a) the names and rates tendered by the contractors have been correctly transcribed therein;
(b) the preceding two years rates, where available , have been given therein;
(c) the C.O. has endorsed his reasons on the statement for the acceptance of a particular tender
other than the lowest;
(d) the original tenders together with the list of the contractors/firms invited to tender and
schedule of tenders have been forwarded to Command HQrs/Air HQrs. as the case may be.

AUDIT OF CONTRACTS

148. The contracts will be further examined to see that no extension has been made in the duration
of the original contract and if made, a separate supplementary agreement has been concluded
with the approval of the Chief of the Air Staff/Govt. of India, as the case may be, and the
concurrence of the C.D.A.(AF) has also been obtained.

Section 8 Audit of Disposal/Sales

149. Orders on the subject of Declaration and disposal of Surplus and salvage stores are contained
in AFO 19/2000 as amended from time to time. While auditing the disposal/salvage account
the same may be kept in view. The general procedure in this regard is detailed in succeeding
paragraphs.

85
CATEGORIES OF EQUIPMENT UNDER DISPOSAL

150. A.F. Equipment for disposal is divided into the following categories :-
(a) Surplus Stores exceeding Rs. 10,000 { Rs. 25,000 in the case of M.T. Spares} book value
for any " Single Category of Stores ".
(b) Surplus stores up to a limit of Rs. 10,000/- {Rs. 25,000 in the case of M.T. Spares} book
value of any "Single Category of Store"
(c) Salvage and Scrap
NOTE :- The term "Single category of stores" is to be taken as follow :-
"The book value, or the assessed value of the surplus arising under one vocabulary section reveared as
a result of a provisioning review at any time at a particular Depot/Unit"

DECLARATION OF SURPLUS ETC, EQUIPMENT ETC FOR DISPOSAL

151. VCAS/AOM at Air Hqrs has been delegated full powers {in consultation with dedicated
IFA}for declaring an item surplus in respect of centralized ranges and AOC-in-C, HQMC in
respect of decentralized ranges.
Note :-
1. Centralized Ranges items such as Aviaiton Fuel, Aviation Lubricant & spares of Su-30 Air
Crafts, MiG-29 Air Craft, Mechanical Transport Vehicles, MT items of Line 1 & 2 & MT
Stores, Russian Origin vehicles such ALV, ZIL , CRAZ, ASV & TETTRA Vehicles etc.

Centralized Ranges items include those items for which provisioning activity still cater by
Air Hqrs & GoI{MOD}.

2. Decentralized Ranges items :-

MT 3rd& 4th Line Spares, clothing items, computers, Canberra spares & AVRO Spares,
HPT32 spares etc.

All other spares falls under decentralized ranges items for which GoI{MOD}/Air Hqrs
authorized HQMC/ED/BRD for provisioning & procurement.

Occasions when Surplus Stores can arises :-

{i} Whenever a major assembly is declared obsolete

{ii} Whenever Modification {MOD} is introduced which render a previous MOD or a part of
equipment non-usable.
{iii} Whenever an up gradation is introduced.
{iv} Whenever a PR/SR is raised.

86
 A} Surplus Stores :-
Stores, which cannot be utilized against present or anticipated future requirement. These
will included in active stores for purpose of disposal. These will also include stores, which
are rendered pre-mod due to modification or upgrades.
B} Obsolete Equipment :- An equipment is declared obsolescent when no further provisioning
is carried out due to :-
{i} A prototype of successor equipment has been formally accepted.
{ii} An equipment, though obsolete, is required to be retained to meet tactical/technical
training or other special requirement
C} In active Stores :-
{I} All Aircraft Major Ground/Signal Equipment withdrawn from the service and their
spares, ground and ancillary Equipment.
For Example : Recently HPT32 Grounded & withdrawn from services.
{II} Obsolete Equipment declared by issue of Air Hqrs Routine Order Part IV including
salvages.

DECLARATION OF SURPLUS AT DEPOTS {Current items i.e. Active

Stores}:-

152. Active stores cannot be declared surplus at unit, level. Authority for declaring surplus rests
only with Mother Depot/Repair Depot {here ED/BRD}. Active stores can be declared surplus
only during process of raising Provisioning Reviews. Current Annual Requirement {CAR}
is to be taken in to account while initiating action for declaring Active Stores Surplus.

The following points are to be seen :-

(1) That active stocks are declared surplus by the Mother/Repair Depots and not at Unit level.
(2) That in case of active stock current annual requirement {CAR} has been taken into account
while initiating action for declaring class "B" & "C" stores as surplus. CAR during the last
5 years should be studied and there should be no recurring consumption and the surplus is
to be worked out as per the relevant orders.
(3) That in case of items capable of being repaired , items falling the category of rotables and
class "A" stores which held beyond known IAF requirement, have been considered for
declaring surplus.
(4) That obsolete items have been declared surplus under the authority of Air Hqrs/GoI{MOD}
Routine Order Part IV.
(5) That whenever there is modification/up gradation, the items to be discarded have been
considered for declaration as surplus. It may be ensured that this includes not only pre-
upgrade or pre mod items removed from Air Craft, but also stock of such items held in store
at Units/BRDs/EDs etc.

87
 (6) The Surplus Report cum Disposal Review Statement has been raised by the Unit in the
format prescribed for active, obsolete and obsolescent stores.
(7) The surplus lists have been technically vetted by HQMC in case of decentralized ranges
and by Air Hqrs in case of centralized ranges.
(8) The following documents may be verified :-
(i) Review documents i.e. basis of arriving at the surplus quantity.
(ii) Authority for declaring the items as obsolete/obsolescent.
(iii) Authority for carrying out MODs/up gradation.
(iv) Technical vetting by the committee under SMSO Branch. Certificate that no other
alternative utilization is possible.
(v) Allocation of items identified as usable for alternate use within the same services /
other services.
(vi) Certificate that "Dues in" have been cancelled.
NOTE :- 1. For {ii} authority is Para2{c} of IAP-1541
Leaflet No. 41.
NOTE : 2. Please refer Para2 definitions given in AFO 19/2000as amended from time to time.

METHOD OF DISPOSAL OF SURPLUS STORES

153. As per provision contemplated in GoI{MOD}No. Air Hqrs/60281/95/MC-2/129/US/D/{Air-

IV} dated21st July 1998 disposal of stores shall be carried out through MSTC Ltd as per
agreement concluded by Ministry of Defence with MSTC vide MOD ID No. 6/4/97/D{O-II}/
Vol. II dated 07th August 1997 {quoted as an authority in ibid letter} & same is being extended
from time to time. As of now M/s. MSTC is conducting the auction through ON Line
Process , hence, which option generated more revenue the same can be utilized i.e. auction
through Panel of Auctioneers {i.e. Private auctioneers} as per MOD ID No. 6/21/94/D{[Link]}
dated 21-01-1997 or through MSTC .
NOTE :- Procedural Details are contained in AFO 19/2000 as amended from time to time.
154. Blank.

SEGREGATION OF SURPLUS/SALVAGE STORES FROM CURRENT STOCKS

155. Blank.
156. Blank.

88
Disposal of Salv
Salvaa ge and Sur plus
Surplus

157. The following audit checks will be exercised :-

(a) Whether a surplus report along with the sanction of competent authority for declaring the
item as surplus is enclosed. However, for disposal of salvage, no surplus report is required.
(b) Whether complete stock is transferred to a single location e.g. Salvage section of depot or
unit to retrieve substantial value on disposal.
(c) When transportation cost to one location exceeds the expected retrievable scrap value or if
the value of scrap is negligible, disposal in-situ may be considered.
(d) One of the following procedure is to be followed as under :-
(I) Disposal through local auction. {If the total value of stores is Rs. 50,000/- or less in
a single category/report}.
Authority : GoI{MOD} OM Dt. 21-07-1998 & Schedule XII "H"
(II) Disposal through M/s. MSTC
(III) Disposal through approved Government auctioneers{ in case no contract exists with
MSTC}.
(e) Whether MRP is fixed by BOO {Auction at the rate below/above MRP is regulated as per
the guidelines mentioned in relevant schedule}.
(f) Whether procedure laid down in AFO 19/2000as amended from time to time is followed.

158. Blank.

PROCEDURE FOR THE DECLARATION AND DISPOSAL OF SALVAGE

ARISINGS
159. The following are the methods of disposal of salvage arising :-
(a) By transfer to Army Salvage Depots.
(b) All AF units/Depots will dispose of salvage arising up to the value of Rs. 50000/- in a single
category /report by local auction as per existing instructions.
Auth :- GoI{MOD}No. Air Hqrs/60281/95/MC-2/129/US/D/{Air-IV} dated 21st July 1998.

DISPOSAL THROUGH ARMY SALVAGE DEPOT

160. Certain ranges of stores have been classified as security items and they are enumerated in the
list "A" and "B" of Appendix "H" to AFO 19/2000as amended from time to time. Hence, the
same is required to be disposed off through Army Salvage Depot only. Two copies of
IAFF{Q}431 will be forwarded to concern LAO{AF}/ALAO{AF} for scheduling one copy
to concern consignor LAO for credit verification.

89
DISPOSAL BY PUBLIC AUCTION

161. All AF units/Depots will dispose of salvage arising up to the value of Rs. 50000/- in a single
category /report by local auction as per existing instructions.
Auth :- GoI{MOD}No. Air Hqrs/60281/95/MC-2/129/US/D/{Air-IV} dt. 21st July 1998

PROCEDURE OF SCRUTINY OF DOCUMENTS ON ACCOUNT OF DISPOSAL

OF SALVAGE BY AIR FORCE UNITS THROUGH MSTC/OR OTHER
AUTHORISED AUCTIONEERS.

162. As per revised procedure the documents on account of disposal of salvage stores by AF units
through MSTC and other authorized auctioneers shall be forwarded by AF units to the
concerned LAO{AF}'s . LAO{AF} after scrutiny shall forward following documents with
15 days of its receipt from the unit to PCDA{AF}/JCDA{AF}. The documents forwarded
for payment of commission charges shall invariably be indicated on the forwarding letter.
(a) Minutes of BOO
(b) Sale Account in prescribed proforma given in AFO 19/2000 as amended from time to time.
(c) Delivery Order issued by {MSTC}
(d) Copy of MRO {20%} {For Bid Money} {EMD} & {80% Sale value}
(e) Commercial invoice raised by MSTC
(f) Contingent bill raised by AF unit for payment of commission charges.
(g) Sale release order issued by MSTC
(h) Ink Signed Issue Voucher copy in duplicate
(i) Xerox copy of Gate Pass
2. On receipt of the documents from units following points will be seen by LAO{AF} before
it transmission for payment action :-
(a) Price Accepted by the unit with reference to the MRP fixed by the authorized BOO.
(b) scrutiny of the stores disposed off with reference to the stores proposed for auction as
per the Board proceedings.
(c) Verification of stores issued to the purchaser with reference to the order/delivery order,
EX IV and respective SSRC.
(d) Recovery of Ground Rent @ 2% per day made on the value of the units/quantity for
the period of delay after the date of expiry of free delivery period stipulated in special
terms & condition of tender cum auction/open tender systems. As per the special
terms & condition and successful tenderer shall lift the full material lying in the lot
allotted to them by employing their own labour and transport at their own cost within
30 days or within such time as may be prescribed in the sale order/delivery order.
(e) Cross checking of amount remitted in to treasury by unit through MRO with sale
account/delivery order. The agent {MSTC} /Auctioneer shall collect 20% of Bid as

90
 EMD shall be adjusted towards material value acceptance of the Bid and remaining
80% within 10 days thereafter. In some cases OMRO representing 20% of the Bids
are received directly in PCDA/JCDA before dispatch of contract documents. Whenever
OMRO represent 20% of Bid Money are not forthcoming from the concern AF units,
this facts should be ascertained from the unit.
3. Discrepancy, if any noticed during the scrutiny of the documents, such acceptance of Bid
less than the MRP prescribed in Para 08 of GOI{MOD} OM dt. 21st July 1998 {here also
refer schedule XVII {K}} , discrepancy in issue of stores to the contractor, non -recovery of
Ground Rent charges, non - Receipt of OMRO wanting documents and other points in local
audit, may be pursued with the unit. However, if any delay in getting replies from the units
for reasons such as non-receipt of OMRO's of OMRO's , non recovery of ground rent charges
etc is anticipated, documents may be forwarded to PCDA/JCDA office with suitable remarks
avoid delay in scrutiny of contract documents at this end for further action.
4. A register be maintained as per the proforma shown below as per Main Office letter No. S/
VI/652/61/MSTC dt. 19-11-2003. To watch the receipt of documents/ OMRO from the
unit. The register may be reviewed periodically and cases where there are abnormal delay
say six months approximately or more in receipt of contract documents from the date of
fixation of MRP, cases of non -deposit/short deposit of sale value through MRO{20% of
sale value & 80% of sale value as mentioned in Para 3 above} etc, may be pursued at
LAO{AF} office.
Register for watching receipt of OMROs/Contract documents from AF units on account of disposal of
salvage store through MSTC
Name of Date of Date of Total Particulars of Deposit of Sale Value
AF unit Fixation of receipt of Sale
MRP contract Value 20% MRO 80% MRO
documents No Date Amount No Date Amount
1 2 3 4 5
Particulars of Deposit Ground Particulars of Deposit of Date of Initial of
Rent if necessary Penal Charges submission to
MRO MRO PCDA/JCDA Auditor AAO LAO
No Date Amount No Date Amount
6 7 8 9 10 11

NOTE :- The Register may be maintained in a phased manner. In the first column number 01 & 02 on
fixation of MRP by BOO without entering the MRP fixed in second phase column number 03 & 07 on
receipt of contract documents from the unit and in third phase column number 08 to 11.
2. Unit may please be advised to utilize the revised format of OMRO as under :-
3. For MSTC the commission charges rates is 1.75% of sale value realized .
4. For commission charges of Approved Panel Auctioneers please see Appendix "P" to AFO 19/
2000 as amended from time to time.
Authority letter : PCDA {AF} letter No. S/VI/652/61/MSTC DT 19-11-2003.

91
 Section 9 --- STOCK TAKING OF MAIN ST
STOCK OCK AND
STOCK
INVENT ORIES AUDIT OF F (Q) 405
INVENTORIES

PERIODICITY OF STOCK TAKING

STOCK

163. Stock taking of all stores including stock taking of stores, held on inventories in units and
formations is to be carried out by the executive authorities in accordance with the instructions
contained in Chapter 25, IAP-1501. Units other than Equipment Depots are responsible that
stock is taken of all equipment held on their charge (in main stock or on inventories) once in
each financial year.

In the case of Equipment Depots attractive items will be stock taken under: --

\ (a) Class 'A' and Valuable and Attractive items - once a year.

(b) Class 'B' items - once in two years.

(c) Explosive Stores - once in two years.

(d) Class 'C' stores other than Explosives - once in three years.

NOTE 1: - Unit Equipment Section or Articles-in-use are stock checked once a year as in the case
of consuming units.

NOTE 2: -- Packages stocked or equipment binded in pre-packed condition /tropically packed

stores and those marked "not to be opened until required for use" are to be sample checked by the
Equipment preservation staff. If during these checks any deterioration is noticed in the conditions
of stores, a 100% check of such stores is to be carried out and they are to be re-packed as before.

NOTE 3: -- In the case of Mechanical Transport Vehicles and annual census is conducted which
will be treated as stock taking for every alternative year. The components included in vehicle kit/
guide list of common user vehicles, and F.1670 of specialist vehicles will be verified every alternate
year.

164. In addition to the above following stock checks are carried out: --
(a) DAILY - In respect of Arms and ammunition, to be carried out by orderly officers and duty
armourer.
(b) WEEKLY - POL by Equipment Officers.
(c) MONTHLY - Independent Officers check of ration items and POL balances. In the case of
POL, Equipment Officers may also carry out monthly checks.
(d) QUARTERLY - These checks are necessary in the case of valuable and attractive items
mentioned in Appendix 'F' to IAF-1501 in respect of units other than E.D.s and in the
U.E.S. of E.D.s.
(e) HALF YEARLY - Periodical check of inventory by inventory holders.

92
 (f) SNAP CHWCKS - Whenever ground balances are suspected to be different from the recorded
balances these checks are conducted by Equipment Officers for ascertaining the reasons for
discrepancies immediately on their discovery.
(g) HANDING OVER/ TAKING OVER CHECKS - Whenever there is a change in the
charge of the stores both the incoming and outgoing equipment officers /equipment
staff are to ensure completion of handing over / taking over stocks checks as prescribed
in AFO 31/69 as amended from time to time.

(h) SURPRISE CHECKS - These checks are to be ordered by commanding Officers once
in a quarter in respect of ration articles and other equipment at their discretion. The
results of stock taking are recorded on IAFF (Q) 405 or in the annual census Form (in
the case of MT Vehicles) as the case may be. In addition to the above, the following
stock taking checks are carried pit :--
(a) Stock taking of valuable and attractive items at more frequent intervals at the discretion
of the Officer Commanding.
(b) SNAP CHECK : At any time as ordered by the Commanding Officer or considered
necessary by the Equipment Officer.
NOTE : -A register of snap checks is maintained by Site Officer /Equipment Officer which should be
seen in local audit.
165. Stock taking sheets (F.405) are raised to record:-
(a) the result of physical check of stores as prescribed to be carried out under chapter 25, IAP-
1501 and to declare the surpluses /deficiencies vis-à-vis the balance as shown in the tally
cards/stock record cards, etc. on a particular date.
(b) The particulars of vouchers, viz F. 403 (IAFF(Q) 406) etc., by which the deficiencies have
been set right to balance with the accounting records; whilst themselves serving as [Link].
to bring on charge the surpluses. Stock-taking sheets will be checked to see-
(i) that sheets of a vocabulary section have been numbered serially and prefixed by the
letters "S" and that the total No. of sheets is indicated (i.e. where the No. of sheets is
12, serial Nos. are allotted as 1/12 ,2/12 etc.);
(ii) That the date on which the stock is taken of each item is inserted against it;
(iii) That the Section/reference No of each item counted agrees with that shown in tally
Card/ stock record card from which the balance is transcribed;
(iv) That the certificate of stock-taking is duly signed by the Officer conducting the stock-
taking;
(v) That they are annotated with the Nos. of adjusting vouchers, which are correctly
prepared as per deficiencies, etc, recorded in the stock-taking sheet and adjusted above
the red line in the tally card/stock record card;
(vi) That surpluses of serviceable or repairable items are set off only against deficiencies
corresponding in condition and quantity under the same generic heading in vocabulary

93
 section of stores and F . 403 raised to effect such adjustment is annotated in the
relevant column of stock-taking sheet. Adjustment of surpluses against deficiencies
of a lower category is also permissible.
166. The L.A.O (AF) will ensure in audit that the periodicity of stock verifications as laid down in
regulation is strictly observed by A.F. Units and formations and non-verification/partial
verification of stock in units is condoned under the orders of the competent authority.

NOTE:- Newly formed units are exempted from stock verification during the first year of their
formation provided the Air-Officer-Commanding is satisfied that the resources of the unit do not
permit of stock verification during that year.

167. During the course of audit, it will be further seen:-

(i) that the stock-taking as laid down in the orders is duly carried out by the administrative
authorities and that the due dates of completion are adhered to. In the case of stock-taking
of M.T. Vehicles in M.T. storage Units/Depots it will be seen that a certificate is incorporated
in the Vehicle ledger to the effect that the ledger balances have been verified and found
correct and the same is cross-referenced to the relevant Annual Census Report. Similarly,
in the case of components included in Vehicle Kit/ Guide list of Common user vehicles
and 1670 of specialist vehicles, it will be verified that certificate of stock-taking is recorded
in those lists every alternate year:
(ii) that the results of verification of stock as exhibited in (IAFF(Q) 405 ) (stock-taking
adopted is adequate and proper:
(iii) that the system of stock-taking adopted is adequate and proper;
(iv) That all discrepancies between the book and the ground balances detected during the stock-
taking or "Annual Census" of M.T. Vehicles in E.D"s. are properly investigated and that all
surpluses found on stock-taking have been credited to Government and the deficiencies
have been dealt with under the orders of competent financial authority without any undue
delay ;
(v) That wherever possible, the staff employed in verifying stock is independent of that
responsible for the physical custody of the stock or for keeping accounts thereof;
(vi) That the vouchers relating to the pre-stock-taking or post-stock-taking period have been
correctly posted above or below the red line drawn in tally cards/single record cards at the
time of stock-taking.
168. The L.A.O (A.F.) will bring to the notice of Units/ Command HQrs. any cases of failure on
the part of units to carry out periodical stock-taking or cases of heavy discrepancies or other
serious irregularities noticed in stock-taking.

169. As the responsibility for carrying out stock-taking rests primarily and solely with the executive
authorities concerned, the L.A.O. will not ordinarily himself carry out physical verification
of the balances of stores. In cases, however, where from the state of accounts produced for
audit, or otherwise the L.A.O. is 'put upon enquiry' and has sufficient grounds to doubt may
out an actual stock verification after obtaining the prior concurrence of C.D.A. (A.F.). An

94
 intimation to that effect will be sent by the C.D.A./L.A.O. to the executive officer concerned.
On receipt of such information the O.C, of unit / formation will make suitable arrangements
for the verification of the stock by the representative of the Defence Accounts Departments.
He will provide the L.A.O with sufficient departmental assistance for carrying out his work
and will arrange that the store-holder or his representative of the Defence Accounts
Departmental assistance for carrying out his work and will arrange that the store-holder or
his representative is present during the process of the stock-taking. The result of stock-taking
will be entered by the L.A.O. in the stock verification report IAF (CDA) 531 which will be
prepared in duplicate and the initials of the stock holder or his representative obtained on
both the copies as proof of his having accepted the figure. The completed stock verification
report which will show both the stores actually held in stock and the ledger balances as
worked out by him (LAO) will be shown to O.C. and his signature obtained on both the
copies of the report. One copy of the report will be handed over to the O.C. for his record.
The O.C. will arrange for an investigation of the discrepancies, if any, revealed in the stock
verification report and take suitable action for their adjustment.

170. It will be ensured in audit that in the case of consuming units where the stock-taking is
"fixed " Only one IAFF(Q) 406 is raised for the total value of deficiencies revealed at the
complete stock-taking. In consuming units, where the stock-taking is continuous it will be
ensured that the total value of deficiencies found in all the sections stock taken during a
month form the basis for write off by the competent financial authority.

As regards Equipment Depots, it will be ensured that the competent financial authority is
determined with reference to the total value of deficiencies disclosed in one complete
vocabulary section and are regularised as such.

171. In cases where abnormal deficiencies /surpluses cones to light it will particularly be ensured
that they are systematically examined and investigated and adequate remedial measures taken
to avoid large discrepancies, where necessary.

172. LAO will devote special attention to and keep a regular watch over the progress of stock-
taking activities in the units in his audit area and report to PCDA/CDA(AF) cases where in
his opinion the position is unsatisfactory and needs handling from a higher level.

STOCK-TAKING OF EQUIPMENT HELD IN A-IN-U LEDGERS

173. It will be seen in audit that an independent check of all articles held on charge of each inventory
holder has been carried out by an Officer or Warrant Officer deputed by C.O. and a statement
of discrepancies is prepared by him. It will further be seen that the discrepancies between the
equipment held by the inventory holders and the quantities shown in the A-in-U Ledgers
have been adjusted by recovery on IAFF(Q) 440-B from the individuals held responsible or
written off on IAFF (Q) 406 by the competent financial authority. No IAFF(Q) 405 is, however,
raised in these cases.

95
SURPLUSES AND DEFICIENCIES REGISTER

174. Surpluses and deficiencies found during stock-taking are entered in a Manuscript Register
prescribed in Appx.-'A' to AFO 324/74as amended from time to time. the register will be
scrutinised in Local Audit during the course of audit of accounts for the last half year of each
year. The following points will be seen-
(a) Surpluses and deficiencies are recorded separately. Sets of pages are allotted for each year/
biennial period in respect of depots. The figures recorded in the Register agree with those
shown on the stock-taking sheets.
(b) In the case of depots the surpluses and deficiencies revealed during each financial year of
the BST are recorded separately.
(c) The figures of net surpluses and deficiencies revealed during the stock-taking for the year
under review received from unit /depot for incorporation in the AAC agree with the figures
contained in register.
(d) Action towards investigation and regularisation has been taken expeditiously.
SECTION 10-REGISTER OF INCOMING AND
FOREIGN CONSIGNMENTS

AUDIT OF REGISTER OF INCOMING AND FOREIGN CONSIGNEMNTS

REGISER OF INCOMING CONSIGNMENTS

175. In order that receipts are easily located. Transportation Section maintains a manuscript register
recording details of "Incoming Consignments". The Register shows the Rly. Receipt No. /
Convey note No. /Cargo Manifest No., Wagon No. / Aircraft No., Case markings and Receipt
Vr. No. This register is subjected to general scrutiny to see that: -

(a) Cases received are opened and brought on charge promptly.

(b) That receipt Vr. No. is quoted against each entry.

REGISTER OF FOREIGN CONSIGNMENT

176. This Register is maintained by Transportation Section in respect of all incoming Foreign
Consignment. The Registers shows particulars regarding Original Case Marking, Onward
Despatch Marking of Emb HQ/P & F Unit, Ships Name, Air Craft No., Date of receipt, CRV
NO., Packing Account No., Date of receipt Returnable /Retention copy of Packing Account,
Date Passed on to Accounts Section and hastening action taken to obtain Packing Account
where not received. The Register is subjected to general scrutiny to see that:-
(a) All Consignment received have been brought on charge.
(b) The requisite document viz. Packing Account & CRV are duly passed on to Account Section.
(c) Adequate action has been taken to obtain Packing Account where not received before the
receipt of Consignment.
96
 ANNEXURE -I
(Refer para 52-A & 62-A)

Introduction to AUDOLS

1. AUDOLS (Audit On Line System) software is developed by the Department, by outsourcing,

to carry out Internal audit in Logistic Section of Air Force Unit consequent on introduction of
IMMOLS (Integrated material Management on line system) in Air Force. AUDOLS has
been developed by Tata Consultancy Services in VC ++

2. AUDOLS is integrated software interlinked with IMMOLS. All the required data in AUDOLS
is extracted from IMMOLS through server installed at station Logistics section under LAN.
Audit staff need not provide any input data for the purpose of carrying out audit through
computer by using AUDOLS software.

3. Implementation of AUDOLS has been organized in three stages Viz. Initial audit, Audit
supervised parallel run and e-audit

4. Initial audit

To commence with the implementation of IMMOLS, AF units will transcribe all the opening
stock, held as on the prescribed cut off date, as per the manual SSRCs into IMMOLS. This is
known as Last Line Balances as on the cut off date. Initial audit is an exercise to check the
correctness of Last line balances transcribed into IMMOLS.

5. Preparatory action before undertaking Initial audit

Before undertaking initial audit, LAOs (AF) have to carry out following preparatory exercise.

5.1 Scheduling of EX/IVs: Schedule copies of EX/IVs to the consignee LAOs (AF), after pairing,
on priority, as per the existing procedure vide para 80AFLAM.

5.2 Voucher analysis: Carry out a special drive to identity total transactions (receipts and issues)
during the period (Form the date last audited to date prior to cut off date). IPT (AF) prescribes
the Cut off date and it may vary for each IMMOLS site. For carrying out the job of voucher
analysis, in addition to the procedure defined in Para 48AFLAM, following exercises may be
carried out
(i) Identify internal vouchers (IN/IV, IN/RV etc) for the period those not produced to audit.
Keep a list of such missing vouchers and pursue in audit.
(ii) Identify EX/IVs (all types) for the period those not produced to audit. Keep a list of such
missing vouchers and pursue in audit.
(iii) Identify Issue/Receipt vouchers awaited from consignor LAOs (AF) A&I Notes (from PCDA
(AF) Dehradun, CDA (AF) New Delhi, JCDA (AF) Nagpur), Trade challans, (ATF, diesel,
petrol etc), CP vouchers, Foreign Invoices for the period. Considering the lead-time for
receipt of such receipt vouchers from other offices, PCDA (AF), PCDA (HQrs) etc. such

97
 items need not be objected in audit at this stage. However keep a list of such wanting
vouchers and update it when Vouchers are received from above agencies/offices.
(iv) Identify Non-Moving stores, Slow Moving stores, Outstanding CRVs, Loan expired
outstanding, Loan outstanding, DRs outstanding as on date. Pursue the outstanding cases
in audit. Keep a list of such cases and produce it for inspection.
(v) Keep a list of all outstanding objections on Non-credit of stores and those cases non-credit
of stores detected during audit of current period.
(vi) An effort may be made to indicate 'Item code number' in all outstanding objections relating
to SSRC audit and Issue/receipt audit. This will facilitate easy locating the case/SSRC at a
later stage.
5.3 Audit/Census of SSRC: This an exercise to match SSRCs as per the manual SSRC register
with SSRCs actually maintained. For this purpose checking should be from master SSRC
register to SSRCs actually maintained. The discrepancies may arise broadly of three types
Viz. (i) SSRCs available in master SSRC but not actually maintained (ii) SSRCs not in
master SSRCs but actually maintained (iii) Duplicate SSRCs.
(i) List out SSRCs available in Master SSRC register but not actually maintained. Some of
them may be Dead cards
(ii) Identify the Dead cards and check the cards declared dead are as per the provision in para 65
IAP 1501.
(iii) Raise objection against unit in respect of Live SSRCs available in Master SSRC register
but not actually maintained.
(iv) Missing/Lost SSRCs may be dealt with as per the procedure defined in para 60AFLAM
(v) Keep a list live SSRCs (Item code if available, SSRC Number and Nomenclature) as on the
cut off date. (After rectification of discrepancies pointed out in audit).
(vi) Keep a list of SSRC available in master SSRC register but not actually maintained, remained
outstanding for rectification.
(vii) List out SSRCs actually maintained but not available in master SSRC register
(viii) Check the SSRCs actually maintained but not available in Master SSRC register with relevant
receipt voucher and add the item to List of Live SSRC
(ix) List out duplicate SSRCs and raise objections
(x) Prepare a reconciliation statement as follows
(i) Total SSRCs as on the cut off date
(ii) SSRCs declared dead
(iii) Live SSRC (i - ii)
5.4 Manual Audit: For the period from date last audited to prior to cut off date: Manual Audit
may be carried out as per the procedure/parameters prescribed in AFLAM
NOTE 1: For issue audit purpose LAOs (AF) may collect all types of issue voucher from the unit.

98
NOTE 2: For receipt audit, usually Receipts vouchers viz EX/RVs, A&I Notes, CP vouchers,
Trade challans (ATF etc), Foreign Invoices are received in concerned LAOs from LAOs (AF);
Consignor LAOs/Accounts Sections of Army, Navy, Factories; PCDA (AF) Dehradun/CDA (AF)
New Delhi/ JCDA (AF) Nagpur; Paying controllers; CDA (AF) New Delhi; and PCDA (HQrs)
New Delhi within six to one year from the date of transaction. Hence Receipt linking and audit
would be possible to then extent of vouchers received available as on the commencement audit.
Hence Remaining Receipt Vouchers awaited from various offices identified as per para 5.2 (iii)
above, have to be linked (credit verified) and audited subsequently as and when received from
various offices/agencies. Hence unit may be advised to retain manual documents till complete
audit for the period is carried out and objection relating to the period are settled.

NOTE 3: Prolonged cases of non-receipt of receipt vouchers from various offices may be referred
to respective offices.
5.5 SSRC casting: SSRC casting from date/period last done will be completed and arrive at the
closing stock as at the end of the date prior to cut off date. Draw a red line under the closing
stock. This closing stock will become the opening stock to be transcribed into IMMOLS.
5.6 Audit of Stocktaking: verify that stocktaking up-to the cut off date has been carried out by
the unit and discrepancies remained unsettled may be objected to in audit It would be
appropriate if the unit is carried out a special stock taking to identify the actual stock as on
the cut off date and adjust the discrepancies. This would eliminate audit objections on
mismatch of balances during initial audit.
5.7 Objection Statement: LAOs (AF)will issue objection statement in usual manner as per the
procedure defined in para 30 to 32 AFLAM. The period of audit should clearly be indicated
in the objection statement.
NOTE 1: LAOs (AF) will make an effort to sort out all the discrepancies/Mismatch pointed out
before commencement of initial audit.

6. Process of initial audit:

Initial audit is an exercise to verify the correctness of last Line balances transcribed from manual
SSRCs to IMMOLS. Audit is to be carried out from manual SSRC to print out of LLB obtained
either through AUDOLS software or obtained from AF unit. Following are the stages in initial
audit.
(a) Obtaining cut off date as prescribed by IPT (AF)
(b) Obtaining print out of LLB

(c) Census of SSRC

(d) Verification of LLB

6.1 Cut off date: The cut off date is the date prescribed by IPT (AF) to switch on mechanical
material management system. As per the action plan for implementation of IMMOLS cut off
date for various AF units may vary. Respective Units/ IMMOLS site will intimate the cut off
date to their LAOs (AF)
99
6.2 LLB as on the cut off date: LLB as on the cut off date is the opening of stock held as per the
Manual SSRCs, as on the prescribed cut off date.

6.2.1 Print out of LLB may be obtained either through AUDOLS software or from AF units. Print
out may be obtained site-wise or nature of store wise OR according to the method the SSRCs
are kept in logistic section to facilitate smooth and fast linking of last Line Balances.

6.3 Census of SSRC: Census of SSRC is an exercise to see that all the Live SSRCs and stock
balance thereon as on the cut off date has been transcribed and brought under mechanical
system (IMMOLS). For this purpose an exercise has already been prescribed vide para 5.3
(i) to (x) above to identify the total manual SSRC as on the cut off date. The list so prepared
has to be compared with print of LLB to see that the all the Manual Live SSRC have been
transcribed into IMMOLS. In this case Mismatch/discrepancies may be of following nature
(a) Live SSRCs maintained in manual environment but not available in print out of LLB
(IMMOLS)
(b) SSRCs available in print out of LLB (IMMOLS) but not maintained in manual environment
(c) Duplicate SSRCs in print out of LLB (IMMOLS)
6.3.1 Reconciliation Statement: Prepare a reconciliation statement as follows
(i) Live SSRC as per the print out of LLB
(ii) SSRC not ported
(iii) Break up of SSRC not ported (Not in GIG etc.)
6.4 Verification of LLB: Verification of LLB will be from Manual SSRC to print out of LLB and
not vice versa. Discrepancies may be of following nature
(a) Balance brought forward in IMMOLS is less than the balance as per the manual SSRC as
on the cut off date (refer para 5.5 above)
(b) Balance brought forward in IMMOLS is more than the balance as per the manual SSRC as
on the cut off date (refer para 5.5 above)
(c) Class and category do not match
(d) Rate/cost not available in System SSRC
6.5 Objections/ Observations Initial audit is an exercise to check the last line balances. Hence
Observations/Objections on initial audit should be restricted to Mismatch/Discrepancies
noticed as per exercises at para 6 to 6.4 above. Observations/Objections on regulatory audit,
proprietary audit etc. may not be included along- with objections on initial audit.

NOTE : LAOs (AF) will make an effort to get all the discrepancies pointed out in initial audit
rectified before commencement of parallel audit as far as possible.

100
7. Audit Supervised Parallel Run

From the cut off date AF Units will commence a parallel run for three months, wherein the
unit will maintain both SSRCs/Tally cards and system documents for the transaction arising
during the period. Similarly Audit Supervised Parallel Run is an exercise wherein LAOs
(AF) will carry out both manual audit and audit through computer (AUDOLS) for the same
accounts.
7.1 Object of Audit Supervised Parallel Run
Apart from carrying out usual internal audit, the core object of Audit Supervised Parallel
Run is to identify the shortcomings in the IMMOLS/AUDOLS. Since AF units are switching
on mechanical transaction from manual transaction and LAOs (AF) are switching on the
mechanical audit from manual audit the Audit Supervised Parallel Run is significantly
important being the turning point.

7.2. Process of Audit Supervised Parallel Run

Following are the stages in Audit Supervised Parallel Run

(a) Identify the transaction (both internal and external receipts; internal and external issue)
(b) Obtain Print out of vouchers through system
(c) Identify mismatch in Manual SSRC and system SSRC. Carry out issue linking/audit and
receipt linking/audit as per the audit parameters laid down in AFLAM.
(d) Carry out Receipt Audit /Issue Audit and other audit prescribed for logistic section through
AUDOLS as per procedure defined in Chapter IV to VIII of this manual.
(e) In respect of issue to Non-IMMOLS sites, schedule one copy issue vouchers to consignee
LAOs (AF)
(f) Issue Objection statement or NIL objections statement along with a certificate (as per the
format given in Appendix-----of this manual.
7.3 Objection/ observation: Apart from objections/observations on regular audit in logistic section,
mismatch in Manual SSRC and system SSRC shortcomings in IMMOLS procedure may also
be included

Note: LAOs (AF) will undertake parallel audit for same period the unit have undertaken parallel
run.

8. E-Audit

After completion parallel audit LAOs (AF) will shift to e-audit (Audit through computer by
using AUDOLS software). Following audit functions are covered in AUDOLS.

(a) Auditing Issues

(b) Auditing Receipt

101
 (c) Auditing/Casting SSRC

(d) Export/Import and verification of Last Line Balance

(e) Auditing Census

(f) Auditing Stock taking

(g) Auditing Store Inward Sheet

(h) Auditing Store Outward Sheet

(i) Auditing Vehicle Inward Sheet

(j) Auditing Vehicle Outward Sheet

(k) Auditing Discrepancy Return

(l) Auditing losses and damage

(m) Auditing Dues In/Dues Out

(n) Shelf Life Audit

(o) Reports. (Authorization Dependency, Casting report, Conversion details, RVs source of
supply, Item transaction report)
NOTE: Detailed procedure are explained in chapter IV to VIII of AUDOLS Manual Part -I

Introduction to IMMOLS

9. Before explaining the procedure of audit through computer (AUDOLS), a brief exposure to
IMMOLS will help the field staff to understand the new concept of Electronic Accounting
system adopted by Air Force. Air Force switched on to electronic store accounting system
called IMMOLS (integrated material management On line System ) from the age-old manual
accounting system as defined in IAP 1501. Programme covered in IMMOLS relating to
Maintenance of SSRC, Issue and Receipts are explained in succeeding paragraphs.

10. Creation of GIG

For the purpose of electronic store accounting and transactions, Air HQrs created a GIG
(Global Index Gallery) consisting of SSRCs of all types stores in Air Force as a whole. The
GIG also bears an "Item code Number" in addition to the section reference Number for each
store. The GIG is accessible to all the Self-Accounting Air Force units through network.

11. Maintenance of SSRCs through system.

For the purpose of switching on to IMMOLS, the project co-coordinating team at Air HQRs
(IMMOLS PROJECT TEAM) will prescribe a cut off date and intimate it to the unit. The
unit will transcribe all the existing stock of stores as on the cut off date to system SSRC, as
per GIG already created by Air HQrs.

102
12. Internal demand/issue and Internal Receipt

In IMMOLS Internal demand and issue (Within an AF unit) is processed through "IN/IV".
Following are the stages in Internal issue: -
(i) Demand: Lodger units, Dependent Flight section/ user section raise an online demand for
stores, which indicates the particulars of stores, quantity required, purpose, etc. The demand
will then, be transmitted to Station logistic section through LAN.
(ii) Scrutiny and approval of issue: When the demand is received the Logistic officer or the
officer authorized for the purpose will scrutinize it and approve the issue of stores as per the
availability.
(iii) Issue of stores and Allotment of Issue voucher Number: On Approval of issue, system
automatically allots Document Number (issue voucher Number) and the logistic staff will
enter the quantity issued in column provided for it and.
(iv) SOC action: After issue of stores, the logistic staff has to give command for SOC. At this
stage system automatically strike off charge off the stores issued from SSRC
(v) Stages of issue demand/issue of stores
• Registered
• Stage when demand for stores is registered by logistic section
• Fulfilled
When complete requirement of stores (Demand) is met out
• Closed
When stores are issued partly and the demand is closed
• Cancelled
When demand is totally cancelled.
NOTE 1: In IMMOLS there is flexibility of issuing stores more than the quantity required by the
demander.
NOTE 2: Under IMMOLS stores can be issued partly against a demand as per the availability
12.1 Internal Return
In IMMOLS, Return of stores to logistic section by Internal return by user section, lodger units are
processed through 'IN/RV'. Following are stages in Internal return
(i) Internal Return: User section or lodger unit will return stores to logistic section by raising on
line IN/RV, indicating the particulars of stores returned.

(ii) RV number: After inspection then stores will be brought on charge. At this system generates
IN/RV number, consecutive serial number for the year (Calendar year)

(iii) BOC action: For BOC of stores in SSRC/tally card the logistic staff has to give command
for BOC. At this stage system automatically BOC the stores issued in SSRC

103
13. Types of External Issue/Receipts
External issues/receipts of stores are of following types
• Issue/Receipts between AF units.
• Issue/Receipt to/from other services (Army navy etc.)
• Issue/Receipt to/from PSUs
• Issue/Receipts from/to private parties
• Foreign consignments.

14. Issue/Receipt between AF units

In IMMOLS Issue/receipt between AF units are of three types. These are (i) Issue of stores on
demand (ii) Issue of stores against Air HQrs allocation and (iii) Unit Return. Issue between one AF
units to other is termed as "Material Transfer" and the voucher is termed as "Material Transfer
Voucher (MTV)" substituting the existing term "EX/IV". Following are the procedure in IMMOLS
for issue/receipt of stores between AF units:-

(a) Issue: Action by consignee unit (demander)

(i) Demand: When an item is required the consignee unit (the demander) will raise an on line
demand, known as MTR (Material Transfer Request). Such demand (MTR) gets transmitted
to the consignor through WAN. MTR is the primary document in the process of issue
through IMMOLS, which is known as parent document. MTR apart from system generated
an MTR Number the consignee unit (demander) shall also indicate the particulars of stores,
quantity demanded, priority demand etc.
NOTE: Stages of demand as defined in para 12 ibid is equally applicable in respect of issue of stores
between AF units.
(b) Issue: Action at consignor unit
(i) Approval of issue: When the demand is received at consignor's end, the Logistic officer or
the officer authorized for the purpose will scrutinize it and approve the issue of stores
(ii) Issue of stores and Allotment of Issue voucher Number: On Approval of issue, system
generates MTV based on the information in the MTR and allots consecutive MTV number
(Calendar year) In case of loan issue Logistic staff at consignor's end will fill in the column
"Loan till date".
(iii) VOS: VOS (Vehicle Out Sheet) is the substitute of existing TOS. VOS number is generated
automatically whereas logistic staff will fill in following information: -
"Intermediate consignee, weight/volume, Carrier No/Mode of dispatch and other transport details"
(v) SOC of stores: After issue of stores, the logistic staff has to give command for SOC. At this
stage system automatically strike off charge off the stores issued from SSRC
(c) Receipt: action at consignee unit.

104
 (i) VIS:VIS (Vehicle In Sheet) is the substitute of existing TIS. At this stage the stores
received are inspected and brought on charge. RV number is generated through system
with consecutive serial number for the year (Calendar year) In IMMOLS the quantity/
quality of stores actually received will be brought on charge instead of quantity/
quality as per the voucher.
(ii) DRs: As already stated above quantity/quality of stores actually received will be
brought on charge. In such cases where there is a discrepancy between the quantity
issued by the consignor as per the packing note and quantity/quality of stores brought
on charge by consignee system automatically generates a DR. Detailed procedure of
DR us explained in para 15 below.
(iii) BOC of stores in SSRC/Tally card: For BOC of stores in SSRC/tally card the logistic
staff has to give command for BOC. At this stage system automatically BOC the
stores issued in SSRC
NOTE 1: Issue/receipt of stores from IMMOLS site to Non-IMMOLS site and vice versa the process
of document is partly manual. In IMMOLS site the transaction is processed through system as per the
procedure explained in para 12.3.1 above. In such cases hardcopies of MTV are sent to Non-IMMOLS
site as well as LAO (AF). In Non-IMMOLS site the accounting action is manual as per the exiting
manual procedure.
Note 2: Under IMMOLS, stores can be issued partly against a demand as per the availability. In such
cases there will be more than one MTV against a demand

15. DRs

When there is discrepancy in the quantity/quality of stores between the packing Note and stores
actually brought on charge, system generates DR automatically. In IMMOLS there is only DR In.
The existing DR out is dispensed with. The DR is then getting transmitted to the consignor through
WAN.

16. Loss Statement against DRs

Raising of Loss statements along- with DR is dispensed with. Under IMMOLS Loss statement
against a DR will be raised after admitting the DR either by the consignor or by the consignee. In
case of dispute the decision of Air HQrs will be final. The Loss statement so raised will not be for
SSRC/Tally card action.

E-audit procedure

17 In this chapter the audit procedure in computer environment is explained. This procedure is
subject to modification when AF units implement EQOULS.

18 Audit functions covered under AUDOLS

For the purpose of audit through computer by using AUDOLS software, audit functions are divided
into four main functions. Viz (i) linking and Auditing Issue (ii) linking and Auditing receipts (iii)

105
SSRC audit and SSRC casting (iv) Audit of Miscellaneous (v) MIS Reports. Following are the
sub-functions against each main audit functions

18.1 Linking and auditing Issues

(a) Issue linking
(b) Issue Audit
18.2 Linking and Auditing Receipts
(a) Receipt linking
(b) Receipt audit
18.3 Auditing SSRC and SSRC casting
(a) SSRC AUDIT
(b) Casting
(c) Verification of LLB
(d) Shelf Life audit
(e) Non-Moving/Slow moving stores
(f) Authorization dependency
Note: Reports on undue holding of Cat D stores, Holding of AOG items,, Undue holding of Cat E/
salvage in stores are not presently provided for in AUDOLS
18.4 Auditing Misc. Accounts
(a) Audit of DRs
(b) Audit of CVs
(c) Audit of Loss Statements.
(d) Auditing Stock taking
(e) Transportation ( SIS/SOS, VIS/VOS)
(f) Dues In Dues Out
18.5 MIS Reports
(a) Casting report
(b) Authorization dependency report
(c) Shelf Life audit report
(d) LLB verification Report
19. Methodology of Audit through AUDOLS
In computer environment the aim is to concentrate more on audit on higher audit angle rather
than routine audit. The methodology of audit by using AUDOLS is explained in AUDOLS
Manual Part I & II.

106
 CHAPTER V

AUDIT OF MT ACCOUNTS

Topics Para
Documents to be maintained 177
Classification of journeys 178
Authorisation of runs 179
Audit of free runs 180
Audit of Car Diary (IAFZ-2209)(Revised) 181
Audit of use of Service Transport by Officer from residence To office
outside office hours or on Sundays/Holidays 182
Audit of repayment runs 183
Audit of MT repayment register 184
Audit of bonus paid to MT Drivers 185
Mileage Card - IAFZ-2212 (Revised) 186
Vehicle Guide List and Vehicle Kit List 187
Discrepancy Card 188
Monthly MT Return Form F (T) 900 189
Vehicle Log Book (IAFZ-2197) (Revised) 190
Check of Register of Hire Charges from Air Force Officers, Civilians etc.
for the use of Transport on Payment 191
Audit of IAFF(Q) Form 419 (Mod) 192
Audit List of MT Vehicles 193
Manuscript Uniform Register - Civilian MT Drivers 194
Audit of Master Register of hired transport 194 A

DOCUMENTS TO BE MAINTAINED
MAINTAINED

177. M.T. Accounts are prepared on monthly basis and the documents as specified in Appendix VI
of this manual are maintained.

CLASSIFICATION OF JOURNEY
CLASSIFICATION S
JOURNEYS

178. Duty journeys fall into the classes

107
 (i) Routine duty journeys: Routine duty journeys are runs which recur at specified time over
the same route for the same purpose.
(ii) Individual duty journeys: The individual duty journeys are for non recurring duties. The
demands for transport in respect of bonafide Government duties (Free Transport) is submitted
to the station M.T. section by users on a demand form (i.e. Requisition slip) in duplicate, 24
hours in advance so as to facilitate the coordination of journey and allotment of suitable
transport. A specimen of the form is given at the end of this chapter.

AUTHORISATION OF R
UTHORISATION UNS
RUNS

179. Applications for general authority in connection with the use of service transport for routine
duty journeys are submitted half yearly by Station Commanders to respective Command
Headquarters / Air Headquarters as the case may be. On receipt of the sanction the particulars
are promulgated in the unit / Station routine orders. The sanction of routine duty journeys is
required to be revised every six months and notified in unit routine orders. Requisition slip
for first line transport i.e. "Specialist and passenger carrying vehicles" are not required to be
raised. Requisition slip for second line transport i.e. "other vehicles including load carrying
vehicles" will however be looked for in audit in addition to car diaries. It is to be ensure that
the runs are authorized by the M.T. officers or any other officer nominated by the Station
Commander except that when the mileage by road exceeds 160 kms. (One way) sanction of
command Headquarters/ Air Headquarters is to be seen in Audit. For other exceptions see
AFI 28/77 as amended from time to time.

AUDIT OF FREE R UNS

RUNS

180. Car Diary IAFZ-2209 (Revised ) General: Car Diary IAFZ-2209 (Revised) (as per specimen
at the end of this chapter) is maintained in a book-let form for all type of vehicles. Viz. staff
cars including Jeeps, Station Wagons, 1 ton vehicles, ambulances, motor cycles, load/passenger
carrier and specialist vehicles etc. A separate car diary is used for each quarter, the old one
being kept in the MT station for audit purpose.

181. Car Diary will be audited to see that:-

(a) The specific duty performed is shown under col.2 heading 'specific nature of duty' e.g.
Inspection, conveyance of stores etc.
NOTE : 1. No comprehensive list of the bonafide Government duties is possible to be given. The
requirement and benefits of the service are the basic criterion to adjudge the admissibility of
employment of service M.T.
NOTE: 2. If the nature of the duty shown is vague and does not contain sufficient details to enable
the local audit staff to judge the nature of duty performed, the run will be placed under objection.
(b) Column 7 of the car Diary is completed and signed by the officer using the vehicle/user of
the vehicles in the case load carrying officer vehicles. When senior officer not below the
rank of air Commodore are the users of the staff cars, the car diary may be signed by their
staff officers. In no case Car Diary is to be signed by the drivers themselves.

108
(c) (i) Kilometers reading and MT gasoline/diesel drawn is recorded in the relevant columns.
(ii) Motor spirit in the tank is checked on the last day of the month by filling tank to the maximum
capacity and result recorded in the car diary in red ink.
(d) All pages of the car diary are numbered. Any pages or lines therein are not left blank while
making entries. The pages left blank at the end of each quarters are cancelled under the
signature of a commissioned officer.
(e) Authority for use of load carrying vehicles is entered in the "Remarks column".
(f) At the end of the quarter, when the car diary is replaced by another , a certificate of the O.C.
or his representative is endorsed on the car diary that the moves have been authorized by
him as per authority quoted against such moves in the remarks column
(g) Journey performed on amenity (payment or free) and other payment duties are recorded in
the Car diary in red ink.
(h) The vehicles are used for essential journey and the types used are not larger than necessary
for the passenger/ loads to be carried.
(i) The vehicles are not used by units in the station individually for the collection of
mails from post office, but instead one vehicle is employed collectively for the collection of
mails pertaining to all units in the station as far as possible.
(j) Vehicles are not use for collection of mail from post office or for similar other duties where
the used of motor cycle can as well serve the purpose.
(k) Government transport is not used for long distance journeys connected by rail.
(l) Government transport is not used for unauthorized purposes such as
(i) Journey from residence to place of duty or vice versa except when such journeys are
authorized - see Para 180 of this chapter.
(ii) Conveyance of personal effects when changing residential quarters except on normal
hire.
(iii) Journeys to officer's mess, canteen contractor and cinemas, except when vehicle is
authorised for amenity purposes.
(iv) By officer for attending parties etc. at Government houses and foreign embassies and
others similar parties. However, use of transport on payment etc., at the appropriate
rates is permissible where officers have to attain state functions where attendance in
service uniform is compulsory.
(v) Journeys to witness sports/games and /or to arrange and conduct matches except where
specifically authorised in current AFIs.
(vi) Journeys for attending funeral ceremonies except military funerals as laid down in
Government orders.
(vii) Journeys for attending mess nights.
(viii) Conveyance of personal to participate in local exhibitions organised by private bodies.

109
(m) Heavy vehicles are not authorised to be used where a lighter one can as well carry out the
job.
(n) The runs are made on bonafide Government duty or for purposes for which free runs are
authorised.
(o) Co-ordination of journeys has been made as far as practicable.
(p) The journeys have been authorised by the shortest routes.
(q) Deviations from authorised routes are not made and if made , which should be in rare cases,
brief reasons for the deviation is duly recoded to show how it was unavoidable and that
where the deviation is made for purely private purpose, recovery at normal rates for the
entire distance effected.
(r) The mileage recorded is approximately correct as compared to the actual known distances
or with the distances given by the G.E.
(s) In case of 'Routine Duty' journeys, no deviations are made from the authorisation as given
by command headquarters/ Air headquarters.
(t) The cost of runs for a purpose for which specific grants are sanctioned is debited to the
grant.
(u) No vehicles is detailed on 24 hours basis or parked outside the M.T. bay and that it is
detailed for the maximum time necessary for the duty.
(v) Recreational runs in respect of airmen and officers are made in accordance with AFI 13/
75as amended from time to time. Provision of amenity transport to service personal posted
to NCC units is regulated under Government of India, Ministry of Defence No. 0724/72/
NCC/ADM( C)/396/D/D (GS-II) dated 25-2-72 (reproduced in FA /38/72 )
(w) Service transport is not appropriated for the sole use of any officer other than the Chief of
the Air Staff.
(x) The runs authorized for conveyance for school going children are in accordance with AFI
06/89 as amended from time to time and that the concurrence of PCDA(AF)/CDA(AF) has
been obtained for the runs wherever necessary. Where one way distance from central point
and school exceeds 20 Kms but does not exceed 30 Kms, approval of Air HQrs/Dte of Edn
is required. However for use of transport where one way distance exceeds 30 Kms, it would
be ensured that sanction of GOI has been obtained.
The above change is to have effect from 20th Jan 1983.
(y) The ambulance used for conveyance of sick and injured service personnel and their families
is strictly in accordance with the orders contained in AFI 13/99as amended from time to
time and when the conveyance is provided to civilians in ambulance, recovery at the
appropriate rate is effected, when free transport is not authorised .
(z) Government transport provided to civilian officers of Defence installations, having less
than 500 workers, when detailed for labour welfare duties is provided only within a radius
of a 8 kms. , from the headquarters of officers and is for the following authorised purposes
only.

110
 (i) For visiting absent workers at their residences and
(ii) For visiting a sick worker in the hospital.
NOTE: - the use of transport for this purpose is subject to the availability of the transport from within
the existing establishment of the installation and is to be authorised in writing the O.C. of the installation
concerned.
(z)-A When Government transport is used by Air Force units for local purchase of stores
ascertaining the local availability and the cost of urgently required equipment / cost of
repair it will be seen that the following conditions have been fulfilled.
(i) M.T. is requisitioned for local purchase / repair only after it has been ascertained that
required equipment is readily available / can be repaired.
(ii) Where an M.T. run becomes infructuous because the item to be purchased/ repaired is
not available / cannot be repaired the relevant duty slip is countersigned by
Commanding office on completion of such infructuous run.
(iii) Approval of Commanding officer is obtained in respect of runs made for visiting
local market to ascertain availability and cost of equipment required to meet an urgent
commitment or for stock at depot.
(z)-B C.G.D.A.: (a) other Senior Officers of Indian Defence Accounts Service and (b) other civilian
class I officers paid from Defence Services Estimates, Inspecting officers of Defence Audit
Department and A.O.'s of Defence Accounts Department have been provided Government
transport subject to the following conditions:-
(1) Transport has not hired for these officers.
(2) Normal rates as laid down in AFI 13/75as amended from time to time are charged for
non-duty journeys.

AUDIT OF USE OF SER VICE TRANSPOR

SERVICE TRANSPORTT BY OFFICERS FR OM RESIDENCE
FROM
TO OFFICE OUTSIDE OFFICE HOURS OR ON SUND
SUNDAAYS/HOLID
S/HOLIDAAYS
182. Normally journeys between office and residence are treated as non-duty. But use of service
transport (Staff Car) between office and residence by service officers of the rank of AVM and
above is authorized and such journey will be treated as duty journey. Free conveyance of
officers holding the appointments as specified in Para 7 of AFI 28/77 as amended from time
to time is also admissible from the officers residence allotted to them to their place of work
and back as all officers are not entitled to free use of service transport between residence and
office at the permanent duty station.

As an exception, subject always to availability, free use of service transport may be permitted
to an officer, where he is specifically required, under written orders of a superior authority to
attend a meeting or other official duty, whether at the normal place of duty or elsewhere at
the station, either on Sundays and holidays or outside normal office hours or working days.

Column 2 of the Car Diary in such cases will be examined to see that:-

111
 i) Use of service transport has been permitted only where an extra trip from residence to
office and back was entailed on the part of the officer outside office hours on working
days.

ii) Use of service transport is not permitted where an officer was called upon to attend
office an hour or two earlier and he stayed on in office for the performance of his
normal office work or was required to stay in the office for an hour or so beyond the
prescribed office hours.

iii) In the case of officer other than Head of office/OC Units (a) the written orders of the
superior authority summoning the officer for official duty exists (b) the officer using
the service transport has certified that service transport was used for attending to official
work on Sundays/Holidays/outside office hours (as the case may be) entailing an extra
trip from the residence to place of duty and back.

iv) In the case of Head of office/OC Unit the officer using the service transport has recorded
a certificate that the use of service transport on Sundays/Holidays/outside office hours
(as the case may be) entails an extra trip between residence and place of duty and back
and was necessary for performing official duty, which could not be postponed.

AUDIT OF REPAYMENT R
REPA UNS
RUNS

183 Repayment runs are to be allowed very sparingly and only when in the opinion of the
Commanding Officer they are fully justified. Applications for use of M.T. on repayment
IAFF (T) 905 are to be approved by the Commanding Officer personally. IAFF (T) 905 will
be checked to see that :-

(a) They are serially accounted for in the M.T. on repayment Register IAFF (F) 1520.

(b) The run is not made for any unauthorized individual or firm;

(c) Vehicles not fitted with speedometers or with unserviceable speedometers are not to be
detailed on recreational or amenity or other payment runs;

(d) The higher charges are correctly levied as per rates laid down in current A.F. Instructions
and government letters;

(e) The recovery is effected as soon as the journey is over;

(f) The total amount recovered is credited to Government by linking forms IAFF (T) 905
with the forms 1505 received from PCDA (AF)/CDA(AF). For this purpose the original
copies of forms 905 will be scheduled to the LAOs (AF)/ ALAOs(AF) by the main
office;

(g) The recreational runs for officers and families of Airmen are made subject to the
conditions laid down in current A.F. instructions;

112
 (h) Only those types of vehicles as are indicated in Para 9 of AFI 13/75as amended from
time to time are detailed for amenity purposes on amenity rates.

AUDIT OF M.T
M.T.. REPAYMENT REGISTER
REPA

184. M.T. on Repayment Register Form IAFF (F) 1520 will be checked to see that all forms IAFF
(T) 905 raised during the month are exhibited in the register and that it is signed by the
accountant officer monthly.

AUDIT OF BONUS PAID TO MT DRIVERS

PAID

185. Claims received from Units on account of bonus payable to MT driver employees on service
vehicles hired out in accordance with Para 8 of AFI 13/75as amended from time to time will
be scheduled to the LAO's concerned for post audit for checking the correctness of recovery
thereof from the register of MT on repayment and returned to Main Office duly enfaced
"Audited/Objected.

KIL OMETER CARD-IAFZ 2212(R

KILOMETER evised)
2212(Re

186. While auditing Kilometer card it will be seen that :-

i) A mileage card has been opened for each vehicle.

ii) Target KPL of the vehicles as per para 407 of MTSI Part-I and KPL as per work
shop, as per entry in the log book (If applicable), has been correctly shown on the
top of the mileage card.

NOTE 1:- In the case of vehicles on specialist roll such as operations at high altitude, hilly terrain
etc separate target KPL figure where necessary will be determined by the CTO and sanctioned by
Command Head Quarters. All such annotations will be verified with reference to the sanction of
the Command Head Quarters.

NOTE 2:- If officer in charge, MTR and S has amended the standard KPL figure on the ground of
age and condition of operation of a vehicle, countersignature of CTO/STO/OC unit will be looked
for in audit.

iii) Daily kilometer run of the vehicle as shown in column 5 and 6 of the car dairy/F (T)
905 has been correctly reflected.

iv) "The quantity of POL drawn as per IAFF (Q) 419 (Mod) supporting the issue voucher
IAFF (Q) 447 is correctly recorded under the relevant heading".

v) The monthly summary of total Kilometers, POL consumed and KPL achieved are
correctly prepared.

vi) The KPL achieved has been correctly worked out with reference to the total Kilometers
run and the petrol/Diesel consumed. The petrol/diesel consumed will be worked out as
under:-

113
 (a) The actual quantity of Motor spirit found in tank on last day of the previous month,
plus

(b) Total motor spirit drawn during the month, minus

(c) The actual quantity of Motor spirit found in the tank on the last day of the month;

vii) The Kilometer card has been signed by the MTO on the last day of each month.

VEHICLE GUIDE LIST AND VEHICLE KIT LIST

187. The following points will be seen :-

i) Vehicle guide list and vehicle kit list as issued by Army have been maintained. The
vehicle kit list relates to tolls and certain fitment items, while vehicle guide list details
the items as are essential to the mechanical completeness for running of the vehicles.

ii) In the case of specialist vehicles with chassis and only in Air force, vehicle guide l i s t
and kit list as issued by Air Head Quarter; has also been maintained. From 1670 for
specialist vehicles has been raised for mounted equipment only.

iii) Any additional items of equipment as required by the AF are added to the vehicle kit/
guide list under the authority of Air head Quarters and that such items are withdrawn in
the event of return of the vehicle to the Ordnance/Vehicle Depot.

iv) Forms IAFF (Q) 447 on which accessories and components are issued to vehicles to
make up deficiency as shown in the discrepancy card issued by ED/ASP are annotated
"For vehicle guide list/Vehicle kit list, "discrepancy card action" and that the items
issued were actually deficient as per discrepancy card". Actual verification of such
issues having been recorded will, however, be carried out to the prescribed extent.

DESCREPANCY CARD

188. (i) Discrepancy card in respect of each vehicle is issued by the Air Force Vehicle Storage
Unit/Army vehicle ordnance Depot. It should be seen that the discrepancy card is
maintained properly and there are no incorrect entries of issues and withdrawals made
therein. It will also be ensured that the deficiency in case of vehicles which are already
in use in respect of which new discrepancy cards are raised by the unit, the discrepancies
as exhibited in the vehicle kit list/vehicle guide list/closed F (Q) 420are entered as
initial discrepancies on page 2.

ii) Issues and withdrawals against "Initial "discrepancies are recorded on page 3, and for
subsequent transaction the annotation of re issues and withdrawals is done on page 4 of
the discrepancy card.

iii) On transfer/issues of vehicles to another unit, The VKL/VGL has been compared with
the discrepancy card. Resultant net discrepancy has been transcribed page by page into

114
 a new discrepancy card for dispatch along with external issue voucher raised for the
vehicle; old one closed citing reference to the external IV Number. The old discrepancy
card is attached to the external IV and recorded E.A.S. It should also be seen that the
External IV in such cases has been annotated complete to VKL and VGL subject to the
discrepancies shown page 2 of the discrepancy card.

BI-MONTHLY M.T
BI-MONTHLY M.T.. RETURNS FOR F
F.. (T) 900

189. Air force units are rendering bi-monthly returns on the above Form to their respective
Command/ Air Hqrs. Showing MPG/KPL for each service vehicles and endorse therein, a
certificate duly signed by OC to the effect that the MPG/KPL of vehicles mentioned in the
return is reasonably correct and that all possible economy has been exercised. The return will
be cross checked with mileage card for accuracy of figure shown against each vehicles. Where
performance of the vehicle falls below the 70 % of the average KPL shown on the mileage
card on observation will be raised in audit. Such observation will be settled on receipt of a
copy of form (T) 900 from Command Headquarters/ Air Headquarters after countersignature
of the scrutinizing officer at those Headquarters.

VEHICLE L OG BOOK (IAFZ -2197) (REVISED)

LOG

190. With effect from 1-1-72 the use of IAF (T) 963 and IAFZ 2197 has been discontinued and the
above form brought into use.

A few log books will be selected at each cycle of audit. The following points will be seen in
audit of the vehicle log book:

(a) the total kilometers run, the milometer 's reading , average KPL/MPL for each month as
shown in the mileage card of each vehicle has been correctly recoded in the appropriate
section for mileage and fuel consumption record of the log book.
(b) Tyre rotation has been done at regular intervals to prevent pre mature wear and tear of
the tyres. Where tyres have been exchanged, it should be seen that they have been
removed after running the prescribed minimum mileage. (Where reiterated tyres were
fitted, the tyre should not have been removed before covering ten thousand miles after
their fitment)
(c) In the case of vehicles marked for disposal or down gradation as Class-V any exchange
of costly item i.e. engines, tyres & batteries, should be placed under objection.
(d) Suitable record has been made at the appropriate places in the log book whenever items
are replaced during the course of major repairs/servicing citing reference to job card,
issue vouchers etc.
(e) The log Books are inspected and certified monthly by the CO or other responsible officer
appointed by him for the purpose.

115
CHECK OF REGISTER OF HIRE CHAR GES FR
CHARGES OM AIR FOR
FROM CE OFFICERS
FORCE OFFICERS,,
CIVILIANS etc FOR THE USE OF TRANSPOR
TRANSPORTT ON PAYMENT
PA

191. I.A.F. Officers, Civilians etc employed in AE units can where specifically authorised by Govt.
be provided with Govt. transport from residence to place of duty and vice versa on working
days on payment at concessional rates prescribed by govt. based on their salary. Where transport
to these personnel is supplied, it will be seen in audit that the authority of Govt. of India
exists for the provision of transport and recovery of hire charges effected monthly at the
appropriate rates. For this purpose, a full record of the number name and designation of
person carried in the vehicle is required to be kept by the MT office. It will be ensured in
audit that the record is properly maintained .In addition it will be seen in audit that :-

(i) The hire charges are correctly worked out with reference to the rates of pay and allowances
of respective individuals, wherever applicable (for this purpose a few service books in
respect of civilians may be consulted to ascertain the rates of pay and allowances ) and
recovered in advance and credited to Govt. by liking into Fs 1505 schedule by CDA (AF).In
respect of authorization for use of transport between residence and place of duty from 10-9-
69 onwards, the flat rates on kilometer basis has been worked out in consultation with local
transport authorities and the CDA (AF).
(ii) Recovery at half the rates is effected from only those individual who do not use Government
transport for more than two weeks in a calendar month due to continued authorised absence,
leave etc.
(iii) In no case monthly pass for using transport is issued for less than two weeks; and
(iv) The individuals are collected from a fixed central points and not from their residences and
that the service transport is used economically on one fixed route only.

AUDIT OF IAFF (Q) FORM 419 (MOD)

192 (a) Issue of MT fuel to MT section by the Logistic Section is regulated through IAFF (Q) 419
(MoD). This Form consists of a counterfoil and two copies. The counterfoil serves as the
paid copy of the Logistic Section. The first and second copies are used for recording the
issues made to other sections. The second copy is used by Flight/Section for raising
consolidated Demand/Issue voucher F(Q)447 as per normal prescribed procedure. As per
this procedure, the original as well as the duplicate copy of F(Q)447 supported respectively
by the first and second copies of F(Q)419 (MoD) are eventually received in the accounts
section one set from the logistic section and the other form the Flight/Sections. The
consolidated issue voucher will be audited to see that:-
(i) they are duly supported by the original and duplicate copies of F(Q)419 (MoD)
(ii) the total quantity issued as shown against column 7 of form (Q) 419 (MoD) has
correctly been worked out and agrees with the total quantity shown in the issue column
of the issue voucher IAFF (Q) 447.

116
 (iii) the signature of the driver has been obtained in F(Q)419 (MoD) in token of having
drawn the POL.
(iv) a certificate to the effect that "Kilometer Card action has been taken" has been endorsed
on F(Q)419 (MoD).
(v) the quantities shown as issued to vehicle in original and duplicate copies of F(Q)419
(MoD) agree.
(b) The quantity of M.T. Fuel issued to Vehicles will be linked from the Issue Voucher into the
Kilometer Card for the month selected for detailed audit.

AUDIT OF LIST OF M.T

M.T.. VEHICLES

193. The list of MT vehicles will be checked to see that :-

(a) The vehicles held on charge are within the authorised number and of the authorised types:-
(b) Any excess over the number authorised is reported by the unit to Command Headquarters
through the monthly returns for disposal instructions and the excess holding are disposed of
as expeditiously as possible.

MANUSCRIPT UNIFORM REGISTER CIVILIAN M.T

M.T.. DRIVERS

194. It will be seen that:-

(i) Issues are made according to the scale prescribed according as the station is classified as
Winter/Summer, all Winter and all Summer. Signature of M.T. driver has been obtained in
respect of all issues of uniform.
(ii) All subsequent issue/exchange are duly recorded and that voucher raised indicate previous
date of issue.
(iii) Frequency of issue/exchange is in accordance with the prescribed fair life of the uniform.
(iv) In case of transfer from one A.F. Unit to another, the record of transaction is notified to
MTO of the new unit and his acknowledgment is obtained.
NOTE: - A copy of record of such transactions will be obtained and scheduled by the LAO to his
counterpart at the new unit.

(v) In case of discharge before expiry of the fair life period of the uniform the items of uniform
are withdrawn and returned to stores. Part-worn serviceable items are bought on the charge
and reissued to MT drivers. In the case of items rendered unserviceable due to unfair, wear
and tear, recovery action is taken against the MT driver concerned.
194 A: Audit of Master Register of hired transport

(a) That the register is properly maintained on the format shown below prescribed vide Air
HQrs letter no. Air HQ/62908/MT(A) dated 1-7-88.

117
 Master Register for requisitioning/hiring of civil transport

(b) That the transport has been hired for bonafide govt. duties as laid down in AFI 9/87 as
amended from time to time.
(c) That the hired vehicle has been used for the purpose for which it is hired.
(d) That the Kms covered by the vehicle have been correctly worked out .
(e) That the vehicle hired has been utilized to the maximum advantage to the state.

(f) It will be seen that column no 1 to 11 of the register are complete in all respect in
respect of each case of hired transport.

118
 REQUISITION FOR GOVERNMENT TRANSPORT

(a) Rank …………….. Name…................................……..Designation……………..................

(b) Type of vehicle required…………………………………………............................................

(c) Required on date .................………………………Time…………………….........................

(d) Duration………………………………..................................................................................

(e) Where required………………………...................................................................................

(f) Destination….........................……………and one way distance………........Kms…............

(g) Nature of duty for which transport required…………………................................................

..........................................
Signature of Indenter

Station…...................………..

Tel No. ………….Date…………….

Orders of MTO/Stations Commander

Sanctioned/Not available

…………………………….

( Signature of approving authority )

Registration No………………………

Date…………………………………..

119
 Specimen of Driver's Car Diary-IAFZ-2209 (revised)

Date Specific Fm To Mile- Mileage/ Signature of Motor Signature Remarks

nature of meter Kilometers officer/User sprit of issuer of
duty Rds using vehicle drawn Motor spirit
1 2 3 4 5 6 7 8 9 10

NOTE :-

1) Motor spirit in tank will be checked on the last day of the month by filling tank to maximum
and result recorded in red ink.

2) The diary should be for a quarter.

3) Authority for use of load carrying vehicle will be entered in the remarks column. At the end
of the quarter, when the car dairy is replaced by another, a certificate of the OC or his
representative will be endorsed on the car dairy to the effect that moves entered in the car
dairy have been authorized by him as per authority quoted against such moves in the remarks
column.

120
 CHAPTER VI

AUDIT OF AVIATION ACCOUNTS

Topics Para
Documents to be maintained 195
Audit of Flight Oil Book, IAFF(Q) 419 (Mod) & Aircraft Servicing
Form (F.700) 196-198
Audit of Flight Authorisation Book 199
Audit of Passenger and Cargo Manifests 20-202
Audit of Watch Log Book 203
Audit of Register of Civil Aircraft Landing and Housing 204
Audit of Manuscript Register for recovery of housing and landing charges 205
Special Flight Returns 206

DOCUMENTS TO BE MAINTAINED
MAINTAINED

195. Aviation accounts are prepared on monthly basis. The documents maintained in this connection
are listed in Appendix - VI to this manual. The audit checks required to be exercised on these
documents are outlined in the succeeding paragraphs.

FLIGHT OIL BOOK

196. Flight Oil Book IAFF (Q) 486 is maintained by each Flight. In audit, it will be seen that :-
(a) The arithmetical calculations are correct.
(b) The book is kept posted up to date. All erasures and scorings are attested by the Flight
Commander or other authorized representative.
(c) The balance of Oil is struck, as and when issues are made.
(d) Opening and Closing balances are correct.
(e) Summary at the end of the month showing the following particulars has been prepared and
attested by the Flight Commander or his authorized representative.
(i) Opening Balance
(ii) Receipt during the month.

(iii) Consumption during the month.

(iv) Balance at the end of the month.

(f) Drained Oil has been returned to store and the concerned R.V. No. has been quoted in
support.

121
IAFF (Q) 419 (MOD)

197. Issue of Aviation Fuel to Flights/Sections by the Logistic Section/Refueling Section is regulated
through IAFF (Q) 419(MOD). This from consists of a Counterfoil and two copies. The
counterfoil serves as the pad copy of the Logistic /Refueling Section, as the case may be. The
first and second copies are used for recording the issues made to other sections. Consolidated
Demand /Issue Vouchers {Form (Q) 447} are raised on daily basis by Flights /Section daily,
on the basis of the second copy of F(Q) 419(MOD) as per normal prescribed procedure. As
per this procedure, the Original, and the duplicate copes of Form (Q) 447, supported
respectively by 1st and 2nd copies of IAFF (Q) 419(MOD), are eventually received in the
Account Section, one set from the Logistic Section and the other from the Flight /Sections.
The consolidated issue vouchers will be audited to see that: -
(i) They are duly supported by the original and duplicate copies of F(Q) 419(MOD).
(ii) The total quantity issued, as shown against column 7 of F (Q)419(MOD), has been worked
out correctly, and agrees with the total quantity shown in the issue column of the Issue
voucher IAFF(Q) 447.
(iii) The signature of the pilot has been obtained in F(Q)419 (MOD) in token of having drawn
the aviation fuel.
(iv) A certificate to the effect that "Log Book action has been taken" has been endorsed on F(Q)
419(MOD).
(v) The quantities shown as issued to Aircraft in the Original and duplicate copies of F(Q)419
(MOD) agree.
(b) In respect of issues of Aviation Fuel from Trade, Refueling Section, where established, acts
as Controlling Agency. The total quantity drawn from trade is entered in the Counterfoil of
IAFF(Q) 419(MOD), and individual issues made on copy Nos. 1 & 2. Balance left in the
refuellers at the end of the day is carried forward, and is recorded in the /counterfoil of
F(Q)419(MOD) for the following day. The counterfoil of F(Q)419(MOD) will be checked to
see that R. Vr. Numbers have been quoted in support of the entries bringing on charge the
fuel drawn from trade. It will also be seen that the closing balance at the end of the day, has
been worked out correctly and carried forward to Counterfoil of F(Q)419(MOD) for the next
day. The receipt entries in F(Q)419(MOD) will be paired with the corresponding R. Vr. To
the extent of 5% to ensure that the R. Vrs. raised are for the quantities reflected in
F(Q)419(MOD).

AIRCRAFT SER
AIRCRAFT VICING FORMS (F
SERVICING .700)
(F.700)

198. The quantity of aviation fuel issued to Aircraft will be linked from the Issue Vouchers into
Form 700 (Aircraft Servicing Form) to the extent of 10% of the Internal Issue Vouchers
raised during the month selected for detailed audit, to see that the quantity drawn as per IAFF
(Q)419 (MOD) agrees with that recorded on Form-700. Likewise, from the issues of Oil
recorded in the Flight Oil Books, a few cases will be selected and linked into F.700.

122
NOTE 1: - Form.700 will be called for, only when audit of issues and replacement of spare parts
etc, and flight oil book is taken up.

NOTE 2: - Forms 700 will be returned, after scrutiny, within a maximum period of 3 days, beyond
which they should not be retained.

NOTE 3: - The Form.700 selected for audit will be confined to the Aircraft on the strength of the
unit Aircraft since allotted out, will be excluded.

AUDIT OF FLIGHT AUTHORISATION BOOK [IAFF (A

UTHORISATION O)- 1202]
(AO)-

199. The Flight Authorisation Book, IAFF(AO) 1202, which is a record of all flights authorized,
is designed to show particulars regarding the nature of duty necessitating the flight, the aircraft
flown, the duration of the flight, the crew etc. This will be checked to see that:-
(i) All the columns have been properly completed and the book is written up in strict
chronological order and that there are no unattested alterations;
(ii) The specific nature of duty is indicated in column F. (duty or practice ordered) to determine
the admissibility or otherwise of the flight;
(iii) Flying hours are correctly worked out as based on 'time of take off' and 'time landed';
(iv) The book is signed by the O.C. the flight at the end of each day's flying and at the end of
each completed page by the Station commander at the end of each calendar month;
(v) The names of Pilots and crews are written in ink in block letters;
(vi) Summaries of "Sorties" and "Flying" hours are correctly compiled and are checked to see
that the aggregate No. of Hours flown are within the sanctioned hours;
(vii) Where special V.I.P. flights are undertaken they are 'on Official Duty' only. In all other cases
of use of V.I.P. flight by the entitled V.I.P. sanction of Govt. of India authorizing the airlift
and specifying the incidence of charge will be looked for;
NOTE: - Orders regulating Airlifts in these Aircraft of VIP flight are issued by Govt. from time to
time. Current orders in this regard are contained in Min. of Def. O.M. No. F.7(3)/66/802/D (Air-
II), dt.17th Aug. 1968 amended from time to time.
(viii) In all other cases where special flights are provided to non-entitled individuals or in the
case of flights undertaken on behalf of civil power; etc. Government orders sanctioning the
flight and/or specifying the incidence of charges will be looked for;
NOTE: - Orders regulating use of IAF Aircrafts are promulgated in AFI-49/71 as amended from
time to time.
(ix) Flights out of India other than the regular courier services, which operate under specific
Govt. orders, are undertaken only under the orders of the Govt. of India;
(x) No flight is undertaken as "Errands of Mercy" without the sanction of Chief of the Air Staff;
(xi) Annual Flying quota fixed by Govt. for each type of Aircraft is not exceeded and where it
has been exceeded orders of CAS authorizing reallocation of the surplus flying effort within
three months of the end of the Financial Year have been produced;

123
 (xii) In the case of Aircraft other than transport Aircraft any passenger carried, have been shown
in column 'e' of the Flight Authorisation Book.
(xiii) Special provisions in regard to the production of Flight Authorisation Book in respect of
'operational stores' may be kept in view while demanding the same for audit.

AUDIT OF PASSENGER AND CAR

PASSENGER GO MANIFESTS
CARGO

200. Passengers Manifests (Form-1256) contains essential information regarding No., Rank, Name
and status of the person conveyed in the service aircraft while the Cargo Manifests (Form-
1256'A') gives details of the consignments weight, etc., carried in service aircraft.

NOTE: - Passengers/Cargo manifests which are marked "Top Secret" will be produced to the
LAO(AF) personally. Such documents will not be taken away but will be seen by Audit Officer
concerned in the presence of the Officer responsible for the custody of the documents. In the case
of documents marked "Secret" the same can be handed over to the LAO/ALAO(AF) who will get
them audited in the presence of Air Force Officers concerned. LAOs/ALAOs(AF) are not required
to audit passenger manifests "in" but only "out" manifests.

201. Passenger Manifests will be audited to see that -

(i) The manifests are complete in all respects and no Serial No. is missing and all passenger
manifests are produced for audit;
NOTE: - Passenger Manifests are raised only in cases where passengers are conveyed in service
aircraft and not in respect of the crew.
(ii) The persons traveling by service aircraft are entitled to travel. In case where non-entitled
persons are manifested it will be seen that sanction of the competent authority for the
provisions of airlift exists in each case and where the same is not produced, it will be placed
under objection for recovery /regularisation action.
202. The Cargo Manifest Form 1256'A' will be checked to see that -
(i) Manifests are complete in all respect;
(ii) No Serial No. is missing and all the manifests are produced for audit;
(iii) The Cargo carried in aircraft is bona-fide Govt. property. In cases. Where unauthorized
Non-Govt. stores are conveyed, it will be ensured that recovery regularisation action is
taken.

AUDIT OF W ATCH L OG BOOK (FORM-68)

LOG

203. Watch Log Book is maintained by Duty Air Traffic Control Officer to record particulars of
take offs /landings of aircrafts including civil, foreign and commercial aircrafts.

This is scrutinised to see that -

(a) Full particulars regarding name of Pilot, type, weight and particulars of aircraft and time of
take offs, landings, etc. are recorded therein;

124
 (b) The particulars of foreign, commercial and civil aircrafts landed/housed, etc. are correctly
transcribed into the register for recording of landing and housing of civil aircraft.

AUDIT OF REGISTER OF CIVIL AIR CRAFT LANDING AND HOUSING

AIRCRAFT

204. The register is maintained to record foreign, commercial and civil aircraft landing. It will be
ensured in audit that -
(a) recovery bills [IAFF(F) 1525] for landing/housing charges bear consecutive serial Nos. as
recorded in the register and the particulars extracted therein in regard to type, weight, numbers
of landings made, exact time for which housed, etc. are correct.
(b) The landing and housing charges shown in the recovery bills are correct.
NOTE: - Current rates of landing and housing charges are contained in AFI 78/71 as amended
from time to time.
(c) In cases, where exemptions for recovery of housing and landing charges have been made,
Govt. sanction in support thereof whether in general or specific terms, exists.
(d) In cases where credit facilities have been provided to commercial, civil and foreign aircrafts
under Govt. orders the "Noted for recovery" copies of the bills are received from the CDA
(AF). Cases where "noted for recovery" copies are not received within a reasonable period
will be enquired into and to ensure that the bills have, in face, been raised and forwarded to
CDA (AF) for necessary action and such cases will also be placed under observation to
watch their clearance.

AUDIT OF MANUSCRIPT REGISTER FOR RECOVER

RECOVERY OF HOUSING
VERY
AND LANDING CHARGES
CHARGES

205. The register is maintained to record recoveries of landing and housing charges made in advance
in respect of commercial aircraft, etc.

This will be checked to see that :-

(a) All bills raised by the watch office have been duly entertained therein and the amount(s)
thereon credited to Government by linking into the cash vouchers received from CDA (AF).
(b) Charges for POL issued, repairs carried out to the aircraft or any other services rendered and
correctly calculated from relevant IAFF (Q) 431 and the amounts are duly credited to
Government by linking into the vouchers received from the CDA (AF).

SPECIAL FLIGHT RETURNS

206. Monthly returns in respect of Special Flight undertaken requiring recovery action from different
Ministries etc. are prepared in five copies by the Unit providing the Airlifts. Two copies of
these statements will be forwarded to LAOs and two copies to the Command concerned. One
of the copies sent to the Command will be forwarded by them to Air HQrs. for provisional
casting purposes. LAO will send one audited copy of the return to Air HQrs. through Command
HQrs. after exercising the following audit checks -

125
 (i) Appropriate authority for providing the Airlifts has been quoted in the Special Flight Return.
Where authority has not been quoted, the flight will be placed under objection.
(ii) Where the entitled VIPs traveling in Aircraft belonging to the VIP flight have carried with
them non-entitled persons, suitable certificates as required under the rules have been furnished
by the former.
(iii) The nature of duty viz. Official or Non-official has been indicated and where the flight are
on non-official duty, necessary action has been taken for affecting suitable recoveries.
From the audited copy Air HQrs. will prepare annually a consolidated statement of out-standing
list of flights. LAOs will also render following monthly returns, in two parts (as per proforma
appended to this Chapter) to the main office.

PART. I - Particulars of special flight requiring recovery action.

PART. II - Particulars of Special Flights requiring recovery action, for which covering sanction
also is awaited.

After rendering the above statement LAOs will pursue the cases requiring covering sanction
with the unit authorities and when the No and date of Government letter etc. covering Airlifts is
obtained from the unit authorities, the same will be furnished to CDA (AF), New Delhi monthly on
proforma Pt-III along with Parts I & II sent to main office as mentioned above. Such cases will be
taken over simultaneously to Part-I. If recovery is due, a copy of the proforma is also given at the
end of this Chapter. The items remaining outstanding in Part-II by the time AAC is rendered will
be included by him in the Annual Audit Certificate. For this purpose it is not necessary to give
details of each outstanding Flight but it would be sufficient if a simple statement in duplicate
showing the total No. of Flights (year wise) still held under objection for want of Govt. sanction,
specifying the monthly reports through which they have been reported to CDA (AF), New Delhi, is
furnished. Particulars of Flights which are covered under standing orders have been listed in
Annexure 'A' to PCDA (AF), Dehradun Circular No. S/IV/963-Vol. I, dt. 16th Nov. 1971. LAOs
will maintain this list up-to-date by incorporating fresh orders issued from time to time.

126
 PART I

Statement Showing Particulars of Special Flight Requiring Recovery Action

NOTE:
(a) No abbreviations are to be used in filing the columns.
(b) ALAOs(AF) should route the return through LAOs (AF).

Signature of the LAO (AF)

127
 PART II

Statement Showing Particulars of Special Flights Requiring Recovery Action for which
covering sanction also is awaited

NOTE:
(a) No abbreviations are to be used in filing the columns.
(b) ALAOs(AF) should route the return through LAOs (AF).

Signature of the LAO (AF)

128
 PART III

Statement Showing Items of Special Flight for Govt. Sanction Received and Objection
Raised on this Account Dropped Against the Unit Authorities

NOTE:
(a) No abbreviation are to be used in filing the columns.
(b) ALAOs(AF) should route the return through LAOs (AF).

Signature of the LAO (AF)

129
 CHAPTER VII

PHOTO ACCOUNTS

Topics Para
General 207
List of Accounts and documents 208-209
Audit of consumption records for photographic
Material IAFF (Q) 414 210-211
Audit of job sheets 212
Issues of IAF photographs-Issues free or on payment 213
Controlling authorities 214
Audit of issues of photo prints 215
Audit of Register of photographs issued free or on Payment 216-218
Photographic Reconnaissance Reports 219-220
Photographic equipment Log Books- IAFF (AO) 1225. 221
Air Negative Register-IAFF (AO) 1224 222
Ground Negatives Register-IAFF (AO) 1224 223
Electrical Instruments and photo equipments grant 223-A

GENERAL

207. The size and requirements of Photo Section in different Air Force Units varies. In the case of
big photo sections, having suitable lock ups and special storage accommodation such as dark
rooms, cupboards, etc. sub-stores are established with the prior approval of Air Headquarters
and bulk issues of 'C' Class stores are made periodically to cover approximate requirements
which are on no account to exceed one month's recurring issues and two months in the case
of C.P.R.S. and C.D. & R.S. at Air Headquarters. In regulating the issues, the main point to
be kept in view is that the issues are restricted to the minimum requirements to avoid any
deterioration of stores. In the case of A & B Photo Equipment in use in Photo Section which
are held in A-in-U ledger, it will be seen in particular that the items held charge are within the
sanctioned scales.

LIST OF ACCOUNTS & DOCUMENTS

208. The various documents to be maintained by Photo Section are listed in Appendix VI to this
manual. The general accounting principles given in chapter 8 paras 42 to 45 and chapter 16
para 17 to 21 of IAP 1501 and current Air Force Instructions and AFOs will be borne in mind
while auditing the Photo Accounts. It will generally be seen in audit that the various documents
are maintained properly while a detailed audit check will be exercised on the following:-

130
 (i) Consumption Record for Photographic sensitized materials.
(ii) Job sheets Form IAFF (AO) 1223
(iii) Manuscript register for photographs issued free or on payment.

AUDIT OF REGISTER OF PHOTOGRAPHIC TALL

PHOT Y CARDS
ALLY

209. It will be ensured that all Tally Cards entered in the Register are produced for audit and an
entry duly attested by oi/c is made therein, showing the date of its opening/closing.

AUDIT OF CONSUMPTION RECORDS FOR PHO

PHOTTOGRAPHIC MATERIAL
MATERIAL
FORM IAFF (Q) 414

210. While auditing the consumption records for photographic sensitized materials it will be ensured
that:-
(a) All receipts of Films, plates, memory cards and paper are duly recorded therein citing
reference to Form IAFF (Q) 447 on which issues are made.
(b) The consumption of stores is recorded citing reference to the serial number of the Job
Sheets IAFF (AO) 1223 in connection with which the material has been expended.
NOTE:- Percentage wastage of sensitized material admissible for different categories of photographs
mentioned in para 211 are laid down in para 10 of AFI 67/71 as amended from time to time. It
should be seen, that excess wastage over the prescribed percentages are regularized by Government.
(c) Casting and verification of opening and closing balances will be done as in the case of
Equipment Stock record cards.
(d) Films and plates which have outlived their specified period of life have been subjected to
practical test before they are declared as unserviceable. Where such materials has deteriorated
before their prescribed life, action is taken to regularize the loss in accordance with the
provisions of AFI 142/71 as amended from time to time.

AUDIT OF REGISTER OF JOB SHEETS

211. The register will be checked to see that-

(a) all the job sheets raised during the half year are entered therein.
(b) They are numbered serially during each year ending 31st march.
(c) Full description of the job done is also indicated and all columns are completed in all respects.
(d) All jobs undertaken whether free or on payment have been produced for audit.

AUDIT OF JOB SHEETS

212. Photographic Job Sheets IAFF (AO) 1223 will be checked to see that-
(a) they are numbered serially during each year ending 31st march.

131
 (b) Full information, viz. purpose for which photographs are required, the size of print, number
of copies required and negative number in the case of reprints from existing negative, etc. is
given in the job sheets.
(c) The nature of job is duly authorized and is in conformity with the classification laid down in
current A.F. instructions.
(d) The photographs are required for recognized official purposes and the jobs are duly approved
by the C.O. wherever necessary, as required under orders.
(e) The material expended on the job is reasonable and not prima facie excessive indicating
and undue wastage.
(f) The signature of the recipients has been obtained in acknowledgement of the photographs
on the reverse of the forms.

ISSUES OF IAF PHOTOGRAPHS -ISSUES FREE AND ON P

PHOT AYMENT
PA

213. Following categories of Air and ground photographic jobs are undertaken for the Defence
Services, Survey of India, and other Civil Departments of Govt. of India, State Govt., Private
persons and bodies:-
(a) (i) Air and ground photography- This covers photography required for operations,
intelligence, training and planning purpose by the three arms of Defence Services.
(ii) Training of Air Force personnel.
(iii) Combined training exercises with other services.
(b) Air Survey photography- Comprising of serial Survey of areas of military importance for
mapping and planning purposes, and Air Survey for Civil Departments required for planning,
Development and constructional purposes.
(c) Ground Photography- Comprises of identification photography for all kinds of Identity
passes, Accident photographs, reproduction of printed material, photographs of models,
photographs taken on special occasions such as VIP visit, ceremonial parades etc. photographs
required in connection with trade testing of Air Force Photographic personnel. For complete
details refer to AFI 67/71 as amended from time to time.

CONTR OLLING AUTHORITIES

CONTROLLING

214. O.C. Unit/station is the controlling authority for Air Photographs undertaken in connection
with the operational and training commitments. In other cases Air Photography will only be
authorized by Joint Air Photo Priority Board, Air HQrs, except in the case of Surveyor General
of India.

AUDIT OF ISSUES OF PHO

PHOTTO PRINTS

215. It will be seen in audit that:-

(i) In respect of photographs issued to the various departments of Govt. of India, State Govt.,
Survey of India, the charges levied are in accordance with para 3 and 4 of AFI 67/71 as

132
 amended from time to time depending upon the size and nature of photographs i.e. whether
reproduced out of existing negatives or from fresh photographs taken.
(ii) Where the demand necessitates special flights being made, the work is to be charged
separately as determined by Min of Defence (Finance) with reference to para 9 (a) of AFI
49/71 as amended from time to time.
(iii) Photographs issued to private bodies and individuals have been charged at 100% over and
above the rates prescribed, the additional charges being intended to cover general and indirect
cost.
(iv) Service funeral photographs of deceased officers/airmen do not exceed Rs. 10 50 in value
when issued free of charge to the next-of-kin.
(v) Photographs mentioned in para 1 (c) , (v), (vi), (vii) of AFI 67/71 as amended from time to
time are issued on payment, only with the prior concurrence of Air HQrs.

AUDIT OF REGISTER OF PHOTOGRAPHS ISSUED FREE OR ON P

PHOT AYMENT
PA
216. A complete record of all photographs, whether issued free or on payment, will be maintained
by each photographic section, in a manuscript register in accordance with instructions laid
down in chapter 8 para 42 to 45 IAP 1501. The register will be checked to see that:-
(i) all requests for photographs whether they are charged for or supplied "gratis" are entered
therein.
(ii) Authority for issue is cited in the column provided for the purposes.
(iii) Number and date of issue voucher [Link](Q) 431 in support of the issue is invariably
quoted.
(iv) The price has been correctly charged in accordance with the provisions of AFI 67/71 and
AFO 301/71 as amended from time to time, or any other current instructions.
(v) Cost of photographs for identity cards issued, where chargeable, has been recovered by the
OC from the individual concerned and credited to the public funds of the issuing Accounting
Unit.
(vi) The accounts officer has scrutinized the register once a month to check that recoveries have
been effected for all issues.
217. In the audit of Form IAFF(Q) 431 in respect of issues of photographs, it will be ensured that
they are annotated "prepayment", "Repayment", "Gratis", or "Financial adjustment". The
verification of recovery in the case of "Pre-payment" vouchers and finalization of adjustment
action in other cases will be watched as in the case of other issues of equipment. It will bear
the serial no. of the relevant entry in the photographs on payment register and not the stores
issue voucher number.

AUDIT OF EXPENSE BOOK FOR PHO

PHOTTO CHEMICAL

218. It will be seen that (a) the chemicals drawn from equipment section have been taken on
charge (b) Chemicals expended are properly struck off charge citing reference to particular
Job Sheet No. and date.

133
PHOTOGRAPHIC RECONN
PHOT AISSANCE REPOR
RECONNAISSANCE TS
REPORTS

219. It will be seen that-

(a) The sortie is authorized one;
(b) If the same is meant for training/practice, the same is carried out with due authority;
(c) If the sortie pertains to special tasks, the job is covered in accordance with the instructions
contained in current [Link] or special orders, if any, issued by Air HQrs. In case, it pertains
to civil Departments, etc. the recovery is effected.

AUDIT OF REGISTER OF PHOTOGRAPHIC EQ

PHOT UIPMENT L
EQUIPMENT OG BOOK
LOG

220. It will be seen that-

(i) All the log books are entered therein as and when the photographic Machines are received
in the section. When photographic machine is returned, a suitable annotation to that effect
is made and the entries are attested by officer in charge.
(ii) All log books as noted in the register have been produced for audit.

PHOTOGRAPHIC EQ
PHOT UIPMENT L
EQUIPMENT OG BOOKS: IAFF(A
LOG O) 1225
IAFF(AO)

221. It will be seen that -

(a) Log books are maintained for all types of aircraft cameras, cine camera guns, recorders and
all their accessories, drying and glazing machines, processing, printing, duplicating and
Photostat machines, all types of enlargers and printers, photographic Test Equipment and
projectors;
(b) Weekly and monthly inspection of equipment has been carried out and the same is kept in
serviceable condition;
(c) A complete record of mechanical failure, repairs, modifications and replacements is kept.

AIR NEGATIVES REGISTER: IAFF (A

NEGATIVES O) 1224
(AO)

222. It will be seen that Air negatives whether produced during the training exercising or special
tasks as authorized in current [Link] have been duly entered therein for presentation/distribution
of negatives.

GROUND NEGA
GROUND TIVES REGISTER :IAFF (A
NEGATIVES Q) 1224
(AQ)

223. It will be seen that all ground negatives produced for all types of ground jobs, as authorized
under current AFIs have been entered therein for presentation/distribution of negatives.

ELECTRICAL INSTR UMENTS AND PHO

INSTRUMENTS TO EQ
PHOT UIPMENT GRANT
EQUIPMENT

223A. A register for Electrical Instruments and Photo Equipment Maintenance Grant will be
maintained by the section concerned on proper form and in audit it will be ensured that:-

134
(i) Sanction received from command is recorded in the registers.
(ii) On receipt of vouchers from C.D.A. (AF), it will be ensured that the items have been brought
on charge (B.O.C) in the register and the cost of each item is also indicated therein alongwith
the progressive expenditure. Issues made are recorded in the Register inter-alia citing
reference of job/job card etc.
(iii) All 'strike offs' are supported by certificate issue vouchers (CIVs) and are certified due to
normal fair, wear and tear.
(iv) Annual stock taking is carried out during march every year and loss, if any, revealed during
the stock taking are written off on F. 406 after due investigations.
(v) Sale proceeds of stores, if any, are credited to public fund accounts.
(vi) Items purchased/services obtained for the above purpose are those items which are not
included in the existing Air Force Scales of equipment but are essential for the efficient
functioning of the electrical instruments/photo-equipment and the facilities are not available
through service sources/the delay in obtaining the service through service sources is not
acceptable.
(vii) Services obtained from the civil sources are noted in the register duly annotated with the
bill no. date etc.
(viii) When items/services are obtained from the services sources cost of such items/services is
noted in the Register. It will be ensured in audit that such vouchers duly priced are sent to
CDA (AF) for watching the progress of expenditure against the allotment of the grant.
(ix) Unspent amount at the close of the financial year will lapse to the Government and is not
carried forward to the next year.

135
 CHAPTER VIII

ARMAMENT ACCOUNTS
Topics Para

List of Account and Documents 224

Small Arms Establishment 225-226
Audit of magazine loan book 227
Audit of Register for recording expenditure of Ammunition for killing
kites and vultures on aerodromes and Stray dogs and allied pests at the
Air Force Stations 228-230
Register for accounting of empty fired cartridges 231
Register for recording expenditure of ammunition for ground defence 232-233
Issues of small Arms and Ammunition on F.443 -B to Entitled personnel 234-236

LIST OF ACCOUNTS AND DOCUMENTS

224. A list of accounts and documents to be maintained in connection with Armament Accounts is
given in Appendix VI of this manual. In auditing the stock record cards (consolidated stock
record cards IAFF (Q) 500 in the Stock holding units like ASPs and EDs) and vouchers
(including stock taking vouchers) , the instructions laid down for check of similar documents
maintained in respect of Equipment Accounts will be observed.

SMALL ARMS ESTABLISHMENT

ESTABLISHMENT

225. The establishment of small arms to be held by air force units is generally worked out vis-à-
vis the entitlement of officers and airmen on the strength of the units as approved by the
Government of India. The current scales are contained in AFO 03/2009 as amended from
time to time. Holding of 15% of the net establishment of small arms for all IAF Units as
depot reserve, by the Equipment Depot concerned is also authorized. It will be seen in local
audit that small arms are not held in excess of establishment and the excess holding have
been reported to the respective command HQrs/Air Headquarters for action as required under
para 4 of AFO 03/2009 as amended from time to time.

226. Instruction for the check of the documents which are peculiar to Armament Accounts, are
given in the succeeding paragraphs.

AUDIT OF MA GAZINE L
MAGAZINE LOOAN BOOK

227. The Magazine Loan Book is maintained by the Armament Officer in manuscript on the form
laid down in para 14, chapter 35, IAP-1501 to record all issues of ammunition and explosives
to individuals on loan until expended. It will be checked to see that:-

136
 (i) At the time of issue full particulars of ammunition in regard to the description, quantity,
date of issue, the purpose for which issued and the signature of the person to whom loan is
made, the date of quantity returned, quantity expended citing reference to the relevant internal
issue voucher are duly recorded;
(ii) Stock record card is correctly adjusted with reference to the expended ammunition;
(iii) The number of fired brass cartridges brought on charge agree with the number of live
cartridges struck off charge from stock record and any discrepancy in the number of cartridges
has been regularized in the normal manner under the orders of competent financial authority,
except in the case of exercises carried out on air to ground ranges, in which case short
receipt is struck off charge by a C.I.V. countersigned by the O.C. Unit.
The accounting procedure outlined above does not apply to cases of 12 bore cartridges (which
are made of paper) in view of the difficulty involved in their collection.

AUDIT OF REGISTER FOR RECORDING EXPENDITURE OF AMMUNITION

FOR KILLING KITES AND VULTURES ON AERODROMES AND STRAY DOGS
AND ALLIED PESTS AT THE AIR FORCE STATIONS

228. The register for recording expenditure of ammunition for killing kites and vultures on
aerodromes and stray dogs and allied pests at the Air Force Station will be checked to see that
the annual allotment of ammunition as authorized by the Government of India, from time to
time for each Air Force Unit is not exceeded and that the quantities expended in excess of the
allotment are either met out of the Central Reserve of one thousand rounds controlled by the
D.D. (Weapons) after obtaining special sanction of Air HQrs, or are regularized under normal
rules.

NOTE:- The current scales of ammunition for the above purposes are laid down in Government
letter reproduced in AFO 447/69 as amended from time to time.

229. In addition to the object referred to in para 227 above the expenditure of small arms and
ammunition is authorized for the following purposes:-
(a) Air Armament practice for single engine (fighter) squadrons and for testing airborne weapons.
(b) Ground training for the Indian Air Force.
(c) Air Armament practices- Heavy bomber squadrons and for testing air borne equipment.
(d) Air Armament practices- Maritime Reconnaissance squadrons of the IAF and for testing
airborne weapons.
230. In all the cases referred to at clauses (a) to (d) of para 229 above it will be seen in audit that:-
(i) Adequate records are properly maintained by A.F. Units showing expenditure of all explosive
stores expended during armament practice and testing of air borne weapons..
(ii) The limit of annual as laid down in Govt. orders is not exceeded and in case extra expenditure
is incurred, necessary sanction of the Government of India, is obtained.

137
 (iii) Issue vouchers in respect of the ammunition and explosive expended during the month
selected for detailed audit are in order and correctly posted in appropriate stock record
cards.

REGISTER FOR ACCOUNTING OF EMPTY FIRED CAR TRIDGES

CARTRIDGES
231. The register is maintained in the case of air to ground ranges. It will be seen that:-
(i) The register shows the actual number of rounds fired and the number of empty cases
recovered.
(ii) Short recovery is struck off on C.I.V. countersigned by O.C. Unit.
(iii) Where Aircraft from one base uses a range controlled by another base, the difference between
the Qty, issued and returned is vouched as 'empty' to the unit controlling the range on F. (Q)
429 in the normal manner.
(iv) The empty cartridges vouched in the above cases by units participating in exercise are
recorded and short recovery struck off charge on C.I.V. duly countersigned by O.C.
(v) Empty cartridges cases recovered and returned to E.D. concerned for ultimate disposal as
per the provisions contained in para 30 of Chapter 35, IAP-1501.

REGISTER FOR RECORDING EXPENDITURE OF AMMUNITION FOR

GROUND DEFENCE
GROUND
232. It is to be ensured from the register that the annual expenditure allotted for each airman is
not exceeded.
233. Air force units are required to carry out tests on all small arms held by them once yearly
and on all small arms suspected of faulty functioning and inaccurate shooting and those
which have undergone repairs affecting the functioning and firing of the same. For the
purpose of testing, maintenance and repair of these arms scales of small arms ammunition
have been laid down by Government of India from time to time. The current scales are
contained in Government letter reproduced in AFO 107/69 as amended from time to time.
It will be seen in audit that:-
(a) Adequate records showing expenditure of small arms, ammunitions have been maintained.
(b) Requirements for yearly firing and accuracy tests have been calculated on the basis of
establishment/actual holding of small arms, whichever is greater, vis-à-vis the scale laid
down by the Govt. and the expenditure has not exceeded these limits.
(c) For small arms suspected of faulty functioning and inaccurate shooting and those which
have undergone repairs, not more than 10% of the total requirements as determined in
accordance with (b) above has been expended.

ISSUES OF SMALL ARMS AND AMMUNITION ON F 443-B TO ENTITLED

PERSONNEL

234. Issues of small arms e.g. pistols/revolvers and ammunition to entitled personnel are to be
recorded on IAFF (Q) 443-B (Flying Clothing cards). The audit checks as laid down in 138
and 140 of this manual will be exercised on vouchers affecting these issues.

138
235. The various other registers viz. Arms Registers IAFF (T) 1043, safe custody book for service
arms IAFF (T) 1044 manuscript registers of daily check or arms, daily arms loan book and
record of check inspection of arms will be checked to see that
(i) inspection of arm is carried out by the officer, warrant officer or NCO in charge of the
armory when arms are received in or issued from the armory and in the first week of every
month (arms retained in armory only).
(ii) All arms on loan to the individuals are examined monthly either by the armament officer or
by the flight or section commander accompanied by the armament officer's representative.
(iii) The daily record of the inspection is maintained showing the following information.
(a) date of inspection.
(b) Defect, if any
(c) Action required.
(d) Date, action completed.
(iv) all entries are legible and made in ink only.

236. particular care will be taken to see that-

(i) the loss of arms and ammunition (including privately owned arms) is reported to the OC
unit immediately on discovery of the loss.
(ii) The O.C. after suitable inquiry, has notified the loss, to police (IAF, Military and civil) to
command headquarters IAF provost, security officer of the area and command P.M. command
Intelligence security branch, GOC or O.C. or local army units.
(iii) The necessary loss statement is prepared and action taken as per chapter 22 and 23 according
as the loss is recovered from the individual responsible or not.
(iv) Arms etc. held surplus to establishment are reported promptly to command HQrs/Air HQrs
for disposal.
(v) Repairable/ serviceable small arms, guns, etc. are disposed /reduced in accordance with
current instructions.
(vi) Accumulated empty cartridges are returned to the nearest ammunition depot, and
(vii) Stock taking once a year and the quarterly independent check by an independent officer
detailed by commanding officer are conducted.

139
 CHAPTER IX
MEDICAL ACCOUNTS

Topics Para
List of Account and Documents 237
Audit of Ledger Cards (Fs 823) and Register for Ledger cards (Fs 823) 238
Stations Sick Quarters 239
Red Cross Stores Ledger 240
Stock Taking 241
Accounting and Disposal of Packing Material 242
Disposal of Medical Stores 243

LIST OF ACCOUNTS AND DOCUMENTS

237. A list of accounts and documents to be maintained in connection with medical accounts is
given in Appendix VI of this manual. The checks, as prescribed for casting, linking. etc of
stock record cards/subsidiary records, audit of vouchers, voucher registers, discrepancy reports,
loans, losses, local purchases of stores, stock-taking etc., of equipments stores generally
apply in the cases of Medical Accounts also and will be exercised accordingly. Separate
series of vouchers, etc., are maintained for the Medical Stores by the Medical Officer. The
following further salient points of peculiar applicability to the Medical Equipment Accounting
will be looked into while auditing these accounts.

AUDIT OF LEDGER CARDS (Fs823) AND REGISTER FOR LEDGER CARDS

238. The ledger accounts are maintained on Fs 823 A register for recording all ledger cards (Fs.823)
opened will be maintained separately. The register will show serial No. of Fs 823 PVMS No.
and description of the item. It should be seen in audit that.
(a) the register for ledger cards Fs. 823 has been maintained giving full details both in respect
of expendable and non-expendable medical stores and bears the signature of the officer -in-
charge stores, against each entry when new cards are opened and registered.
(b) the Fs 823 are stamped with the unit stamp and signed by the Medical Officer and are
arranged alphabetically by vocabulary sections of Medical Stores and kept in binders (Fs
4003) separately for expendable and non-expandable items.
NOTE:- Medical equipment and stores will be accounted under two main heads:-
i.) Expendable- consisting of drugs and dressing etc. the list of expendable items is given
in DGAFMS letter no. 4009/DGAFMS/ DG2 C dated 04.10.52 as amended from
time to time.
ii.) Non expendable consisting of surgical instrument appliances etc.

140
 (c) in respect of dangerous drugs held in medical Estt. a dangerous drugs register prepared in
manuscript form has been maintained in addition to Forms 83 (main ledgers). All dangerous
drugs are accounted for in the main ledgers Fs. 823 at " apothecaries scale".
NOTE 1: the dangerous drugs register will be scrutinized to ensure that it is a complete record of
the receipts, issues and balances of each drug and will also show the address of the patient, ward or
department and the signature of the medical officer.

NOTE 2: Every issue of a dangerous drug to any person is made on Fs. 836 and the total issues of
Fs. 836 raised during a fortnight are consolidated and struck of the main ledger on the basis of CIV
(after giving it, an IV No. from the main IV series). The total quantity of each drug remaining in
the ledger tallies with the balances remaining in the dangerous drugs register at the end of each
month.
(d) Issue of expendable equipment (e.g. drugs, dressing etc.) to dispensaries only have been
made from the main store once a fortnight and charged off from the ledger F. 823 by CIV
duly certifying therein the correctness of the qualities expended. Issues of non-expendable
equipment (e.g. surgical, X-Ray, dental and laboratory equipment and appliances and aseptic
furniture) for use in the wards/MI rooms are not struck off charge of main ledger and have
been entered in a separate internal loan register.
NOTE:- No direct transactions between the stores and the ward or MI rooms are allowed.
(e) strike off action on CIV (IAFFQ 429) is taken in respect on non-expendable items which
have become unserviceable through constant use and this fact is certified by the MEDICAL
OFFICER on the CIV. Other small fragie articles, glass or earthenware etc. not exceeding
Rs. 30 in value and where the unserviceabiltiy has been duly certified by the MO/SMO as
the case may be, giving all relevant details, vide 15 (a) (ii) medical equipment general
instructions will also be struck off ledger charge on CIVs as in the case of expendable
Stores.
(f) In case of write off on F.1230 losses not above Rs 200 in value which are not due to theft,
fraud or neglect are regularized under the orders of PMO of the respective command and
where it exceeds Rs 200 but does not exceed Rs. 1000, each case is regularized by the
DMS/JDMS.
NOTE:- write off in these cases would not require any audit report from the CDA (AF) or concurrence
of DFA (AF)
(g) in case of all losses due to theft, fraud or neglect or where the amount involved is more than
Rs. 1000 sanction of Government. of India has been obtained in support of the write off
action.
(h) All vouchers accounted for in the ledger cards relating to disposal of surplus equipment,
conversion of equipment, local purchase of equipment are duly supported by or endorsed as
to the No. and date of the authority given by the DMS (Air)
NOTE:- (a) Replacement of broken and unserviceable items of crockery used in station sick quarters is
allowed upto a maximum of 15% per annum.

141
 (b) orders in regard to the issue and accounting of crockery and glass were to IAF hospitals are
contained in AFI 34/70as amended from time to time. It should be seen that IAFF Q 448
raised for striking off charge, items of crockery from the inventory on their being rendered
unserviceable, are supported by a copy of the certificate given by the Board of officers vide
para 3 of AFI 34/70as amended from time to time.
(i) the equipment held on charge is within the scale laid down by Government. and
(j) all alternations in ledgers or on vouchers are made in red ink and initialed by the officer
responsible for the accounts.

STATION SICK QUARTERS

239. The IAF station sick quarters are treated as non dieted hospitals except in case where dieted
beds have been authorized. The entitled patients when admitted therein, are to be issued
medical comforts on the scale laid down by the Government from time to time and will not
be allowed medical comforts authorized in S.R.S. in addition to the scale referred to above.
It will be ensured in audit that the patients who are unable to take ordinary rations are struck
off the units ration strength and subsisted on medical comforts only. Further, that only those
patients who cannot medically be subsisted on ordinary rations alone are issued with medical
comforts according to the scales laid down in addition to the normal rations at the discretion
of the Medical officer incharge of the station sick Quarters.

NOTE:-the ration issued to the families of Airmen admitted in Dieted station sick quarters be
admitted in audit as per AFI 1/s/70as amended from time to time.

Dieted beds in station sick quarters are authorized in terms of Government of India, Ministry
of Defence letter no Air HQ/26405/16 Med. 3/2965/3 (Med) dated 31.05.63

RED CROSS STORES LEDGER

240. Red cross stores ledgers maintained by hospitals station sick quarters are subject to normal
audit by LAOs as in the case of other Government stores. It will be seen that-
(i) Proper accounts are maintained by AF Hospitals / stations sick quarters in respect of all
stores received as gifts, e.g. from the Indian Red Cross Society or purchased out of the
funds granted by the society;
(ii) Red cross stores being gifts are not issued on payment;
(iii) Losses of Red cross are struck off duly supported by loss statements sanctioned by the
competent financial authority. The loss statements are priced at the rates given in the revised
list of Red Cross Stores dated 25.06.49, as amended from time to time. Any amount realized
from the individual concerned is remitted by a cheque once in three months to the Director,
Red Cross Hospital services, Indian Red Cross, Simla together with a copy of loss statement;
(iv) Expenditure or sale by auction of articles is duly supported by expense voucher or sale
account sanctioned by the officer commanding'

142
 (v) Unpriced vouchers, etc. received from provincial or state branches of the Indian Red Cross
Society through Air HQrs. Have been correctly accounted for in the respective ledger of
Red Cross Stores.

STOCK TAKING

241. It will be seen that stock taking of all medical equipment, including red cross stores, held on
charge of Air Force Units (other than hospitals) is carried out once in each financial year and
the stock taking results are recorded in F.O. 405. In the case of change of O.C. Hospitals
SMO/MOs of Wing/stations/Units, stock taking will be completed irrespective of time.
Deficiencies are to be adjusted on Fs 1230 and the surplus are to be brought on charge by
means of CRVs.

ACCOUNTING AND DISPOSAL OF PACKING MATERIAL

242. It will be ensured that all special packing material received with the medical stores are
accounted for on the ledgers expense books according to existing orders and that the procedure
laid down for the accounting and disposal of packing material is correctly followed.

DISPOSAL OF MEDICAL STORES

243. The instructions for the disposal of medical stores rendered unserviceable in consuming units
are contained in paras 16 to 21 MEGI. It will be ensured that these instructions are generally
followed by A.F. Units.

143
 CHAPTER X
RATION ACCOUNTS

Topics Para
List of Accounts and Documents 244
General 245
Check of Ration and Forage Returns 1519 246
Audit of IAFZ3033 Ration Account 247
Check on Manuscript Register of Ration issued 248
Overdrawals / Underdrawals of Ration 249
Issue to Personnel of other Services attached to Air Force 250
Issue of ration to Aircrew 251
Check on Issue on Prepayment IAFZ Q 509 252
Packing material Accounting of 253
Stock - Taking 254
Fuel for cooking purpose 255
Issue of Ice to personnel living under canvas without Fans during summer 256
Fuel for Hot water Baths and Washing facilities for Airman 257
Fuel for warming and drying purpose 258
Charcoal for Unit Dhobies 259
ASC supplies for Tech. purposes 260
Oil for Lamps 261
Audit of manuscript Register of Issue of Milk to personnel employed on
Duties involving risk of lead poisoning at Air Force units 262

LIST OF ACCOUNTS AND DOCUMENTS

244. A list of accounts and documents to be maintained in connection with Ration accounts is
given in Appendix- VI to this manual.

GENERAL

245. Casting linking of receipts, issue etc. in the Ration Accounts IAFS-1519 and audit of vouchers
and loss statements etc. are to be carried out in the normal manner to the prescribed extent as
in the case of Equipment Accounts. Special points as indicated in succeeding paragraphs
will, however, be borne in mind while checking the records maintained for accounting of
ration.

144
CHECK OF RATION AND FORAGE RETURNS IAFS-1519

246. In addition to the routine arithmetical checks in regard to casting etc. the above form will be
checked to see that -
(i) Page 1 of IAFS-1519 :
(a) The number of individuals for whom ration are drawn and reflected in page of return, is
correct and agree with the daily issues against each unit as reflected in the Form Q 481
raised and recorded in the manuscript register mentioned in para 22 of chapter 34, IAP-
1501 as reconstructed by A.L. No. 45/70.
(b) The number of ration required to be drawn as per details on the various IAFZ-3033 (Ration
Accounts) of Units are entered correctly against the columns' provided, and the overdrawals/
underdrawals are worked out correctly.
(ii) Page 4 to 9 of IAFS -1519 :
(a) The balance of items of ration brought forward agrees with the closing balances. To ensure
this check, LAOs will keep extracts of the closing balances pertaining to the last month of
every Half year; these should be verified by the Accountant.
(b) Article of ration received on all receipt vouchers during the month have been correctly
brought on charge under different headings.
(c) Surplus disclosed at monthly stock checks have been taken in to account for calculating
total receipts.
(d) Quantities of free issues are correctly transcribed from the monthly totals of stock in the
manuscript register.
(e) All external issues / payments issues have been correctly accounted for at items 7 and 10.
(f) Quantities found deficient at the monthly stock check have been correctly shown in item 11
after proper investigation.
(g) The article of standard rations under drawn and the authorized substitutes obtained in lieu
thereof have been correctly shown in the return and the using of substitutes is covered by
the scales prescribed.
(h) The maximum and minimum limits of stock of ASC supply which the units are authorized
to hold are not exceeded.

AUDIT OF IAFZ-3033 RATION ACCOUNTS

247. (a) Names are correctly brought forward from IAFZ-3033 of the previous month and all
additions/deletions are duly supported by PORs. The names of all the individuals who may
have left the unit on various grounds e.g. posting on transfer, release, discharge, etc. as
indicated in the previous Fs. 3033 are not included in the current month's Ration Accounts;
the form is prepared in ink.
(b) Names of all personnel whether living 'in' or living 'out' are entered in this form in the
numerical sequence of their personnel number.

145
 (c) Supporting PORs are quoted against the concerned individuals when they are admitted to a
hospital, proceed on leave or absent for other reasons. All additions /deletions are supported
by Last Ration Certificates wherever necessary. Checks to this effect will be exercised from
PORs to the entries in IAFZ-3033 and not vice-versa.
(d) Under columns 13 and 14 the number of rations drawn during the month and Ration money
drawn is correctly shown against each airman.
(e) Number of Rations worked out against each individual are also the total number of Rations
arrived at in IAFZ-3033 is arithmetically correct and this has been correctly transcribed in
the relevant column on page 1 of IAFS-1519 (Ration return).
(f) The entries in PORs and IAFZ-3033 are suitably cross linked and serial number of the one
is quoted in the other.
NOTE1 : - In addition to the above checks on forms 3033 an intelligent scrutiny of the effective ration
strength as shown on the daily parade statement will be carried out to see that the issue of ration on any
particular day has not been made for a disproportionate number of individuals. Further the effective
ration strength on any three days in a month as shown in the "Daily Parade Statement " and form 481
will be checked. The figure will be reconciled with the effective ration strength on these days as shown
in Form 3033. Serious discrepancies in this regard will be brought to the notice of O.C. Station and also
highlighted as important irregularities.
NOTE2 : - The LAO and his ALAO will exercise a test check over the title to rations as shown in IAFZ-
3033 in order to ensure that they have been correctly worked out and accounted for. In case where their
test check reveals irregularities, the Lao will order complete check of the entries in IAFZ 3033. The
items test checked by the LAO and his ALAO will be initialed by them. They will also endorse on pages
1 & 2 of the ration return to indicate that the required test check has been exercised by them.

CHECK ON MANUSCRIPT REGISTER OF RATION ISSUED.

248. (i) The items of rations are drawn are the basic ration items or their authorized substitutes as
laid down in the current Air force Instruction and the quantities drawn are not in excess of
the prescribed scale; percentage cut where prescribed have been effected and such cut also
takes into account living out personnel who draw ration in kind including those who draw
dry rations in kind and an allowance in lieu of fresh rations.
(ii) In the case of issues restricted to a certain No. of items in a week (i.e. fowls) the restrictions
are adhered to.
(iii) The signature of mess representative have been obtained against the entries of issues in the
register.
(iv) The totals shown thereon are correct and agree with the quantities charged off in ration
returns.
(v) Supplementary rations to airmen engaged on strenuous exertions and extra issues to airmen
to meet special fatigue or bad weather conditions when made, are authorized by the
appropriate authority and the issues are restricted to the items, scales and periods authorized.
(vi) Issues of unserviceable timber / scrap wood (which is required to be disposed of ex-cite ) in
lieu of firewood are made according to the prescribed scales.

146
 (vii) Manuscript Register of SLO will be checked to see that quantity of cylinders and gas received
during the month as per authorized scale from gas dealer have been brought on charge on
IAFF (S) 1519 (Ration summary) through CRV. Issue to messes on IAFF (Q 481) have
been recorded in the Register in normal manner and at the end of month CIV has been
raised to SOC the total quantity from the IAFF (S) 1519 (Ration summary). Auth. Para 12
and 13 of AFO 21/87 as amended from time to time.

OVER DRAWALS / UNDER DRAWALS OF RATIONS

249. Net overdrawals /underdrawals will be ascertained at the end of the month on page 1 of F.S.
1519 by the Equipment Officer. Overdrawals will be carried over to the next month and
adjusted subsequently by under drawls. The net underdrawls at the end of month, if any, will
lapse to the Government and will not be subsequently adjusted by overdrawals. Overdraw
detected in audit subsequently will be adjusted by underdrawals during the month of audit or
subsequently or by payment at the payment issue rate current in the month of
[Link], will however ,not be adjusted by subsequent underdrawals , as a
matter of course. Such adjustment will be permissible only if satisfactory explanation for the
overdrawals can be adduced otherwise; cost of overdrawals is recoverable from person found
responsible for the overdrawals.
NOTE1;- Under the revised ration accounting procedure the net overdrawals unit wise are estimated
on a monthly basis unlike the previous system under which overdrawals were estimated on daily basis.
This adjustment method is to be applied for each unit separately and automatic adjustment of such
overdrawals against underdrawals at other units is not permissible. Such underdrawals are normally to
be viewed as forfeited to the state.
NOTE 2: - Where overdraw also arising in a particular unit are required under specific orders of the
O.C. of the station to be made good by underdrawals at other lodger unit, either in whole or in part, the
relevant accounting from (IAFZ_3033) is to be suitably endorsed to that effect, where such endorsement
is not made under the specific instructions of the O.C. those cannot be counted against the overdrawals
in other lodger units, although located at the same station. Such overdrawals should be placed under
objection and pursued in the normal manner.

ATTACHED TO AIR FOR

TTA CE
FORCE

ISSUE OF RATIONS TO AIR

RATIONS CREW
AIRCREW

250. Army (including D.S.C.) and Navy Personnel when attached to or forming part of IAF units
are issued ration at their own scales, and it is only when the IAF personnel are in a majority
at the Air Force Units and separate messing for personnel of different services is not considered
possible by the Officer Commanding of the IAF unit that they are issued rations at IAF scales.
NOTE: - The cost of rations issued will be debitable to Air Force estimate and no inter-services
adjustments will be made on their account.

147
ISSUE OF RATIONS TO AIRCREW.
251. (a) Ordinary flying rations are issued according to the scales laid down , when the duration of
the flight is six hours or more and that rations and messing allowances are not drawn for the
individuals for days on which they are subsisted by the issue and consumption of ordinary
flying rations as notified in Personnel Occurrence Repot.
(b) Where emergency flying rations are consumed, a report by the flight commander stating the
circumstances, in which it was necessary to consume such rations is invariably attached to
the relevant F. 481.

CHECK ON PAYMENT ISSUES.

252. (a) It will be seen that payment issues are made to authorized persons only on the basis of the
Ration card. A register of Rations entitlement is maintained to record the following particulars
in alphabetical order of names on the basis of which Ration Cards are issue. The issues
made on "Issue and Receipt Form" will be checked to see that the issues do not exceed the
basic scale of rations and also monetary limits as laid down in AFIs. This is recorded in the
Register of Entitlements.
(i) Full name and designation of the purchaser.
(ii) His basic pay (Pay and Allowances in case of civilians)
(iii) Details of family members, if applicable.
(iv) No. and date of Station Routine Order, under which authorized to purchase rations
(the details of family members shown in Station Routine Order should agree with that
shown in the Register of Entitlements)
NOTE : - Comprehensive instructions in regard to payment issues are contained at AFI 3/S/70as amended
from time to time, Government letter No. Air HQ/ 25213/41 CAT 209 1 D ( Air-IV-69) dated 30th Jan.
1969 (reproduced in AFO 159/71 and AFO 13/75 as amended from time to time).
(b) Payment issues made to civilians of items rationed by Civil administration do not exceed
the limits fixed by the Civil authorities and suitable precautions have been taken to prevent
rationed articles being drawn from the Civil as well as Military sources.
(c) The issues have been made on pre-payment basis.
(d) Prices charged are in accordance with the latest amendment to the stock book rate or Distt.
Area orders (the check being exercised to the prescribed extent ) and that the amounts
recovered have been credited to the Govt.
(e) The amount , representing the cost of items of rations issued on payments as worked out on
issue and receipt farm these vouchers will be compared with the prepayment issue Register
of rations maintained in Equipment Account Section. The linked entries of this Manuscript
register will then be compared with the entries in F. 1505. The charge off of items issued
will be linked from the Manuscript register of issues on pre-payment, in to the pre-payment
vouchers. The consolidated quantities charged off in item 10 of IAFS 1519 (ration return)
and exhibited on page 10 thereof will be agreed with the total quantities in accordance with
totals struck off monthly in the manuscript register of issues on pre-payment , maintained

148
 by the Equipment Section. Pricing of the bulk quantities of ASC supply exhibited on page
10 of the Ration return will be checked with reference to the rates published in the stock
book rate list or Distt. Area Order and it will be seen that there are no abnormal variations
between the amount credited to the Govt. during the month as per F 1505 and the price
worked out as above.

PACKING MATERIAL : ACOUNTING OF

253. It will be seen that all type of packing materials issued by / returned to Supply Depot d for are
duly accounted for in IAFS-1519. It will also be seen that the quantity of packing materials
held does not exceed the fixed allotment determined by the Equipment Officer in consultation
with LOCAL ASC authorities.

STOCK -TAKING

254. It will be seen that stock taking of all ration commodities (including packing materials) is
carried out at the end of each calendar month by an officer appointed by the Commanding
Officer. In addition, a surprise check at least once per quarter is conducted by an officer
detailed by Commanding Officer. Surplus is brought on charge and the deficiencies dealt
with under the normal loss procedure. It will be seen that surplus in one ration commodity
has not been set off against deficiency in another or vice-versa.

FUEL FOR COOKING PURPOSES

255. (i) It will be seen that the type of fuel / firewood and the scale of issue for cooking purposes has
been laid down by the Unit/Station Board and the recommendations of the Board published
in Air Force Station Order. It should, further be seen that where the scale fixed by the Board
exceeds 2.268 Kg. per head per day , approval of Air HQrs / Govt. has been obtained where
the quantity is up to 2.700 Kg. per head per day / exceeds 2.700 Kg. per day per head. The
weight indicated above is applicable to firewood. Where charcoal ,steam coal or soft coke
, scrap wood / un-serviceable timber, tea chest etc. are issued in lieu of firewood; the
appropriate rate of conversion prescribed in AFI 18/S/68 as amended from time to time has
been adopted.

ISSUE OF LPG TO COOKING HOUSES/MESSES

(ii) In case of issue of LPG ( as substitute of charcoal/firewood/kerosene oil etc.) to services
mess it will be ensured that the scale of gas does not exceed 95 gms per head per day and is
subject to percentage cut as applicable to other cooking field. AOs C-in-C may, however at
their discretion authorize and overall increase not exceeding 50 gms per head per day
irrespective of the numbers to be cooked for when owing to the nature of fireplaces available
or for other regions the issue of an increased scale is necessary. Increase in the scale of LPG
sanctioned by AOs C-in-C will be for short periods not exceeding 6 months at a time. If
such increase is considered inescapable for longer periods i.e. for more than 6 months
continuously, sanction of GOI will be necessary.

149
 Authority :- Govt. of India, Min. of Def. No. 61736/23/ST3/125/I D (Air-IV)
dated 28-01-1985. reproduced as appendix "A' to AFO 21 of 87as amended from time to
time.
iii) It will be further seen that the use of existing conversion of fuels such as coal /cock / K oil
/fire wood is discontinued from the date of LPG is introduce in to service.
Authority: Para 8 of Govt. of India, Min. of Defence No. Air HQ/61736/23/ST3/125/1/
D(Air-IV) dated 21/01/85 reproduce as appendix 'A' to AFO 21/87

ISSUE OF LPG TO LIVING OUT OFFICERS /AIRMEN

iv. It will be further seen that stations were the facility of issue of LPG is available as a substitute
of charcoal/firewood/K oil etc. which are basic item at present the issue of LPG to officers
and Air men who are entitled to free ration and are having LPG connections in there own
names does not exist 150 gms per day for living out officers and 145 gms. per day for living
out Airmen . Airmen who are paid LORA at higher or lower rate which include the element
of cooking fuel issue of LPG to such airmen will not be available .
Authority :- GOI , MOD NO. 58302/Q/ST-9/4395/D(QS)

ISSUE OF ICE TO PERSONNEL LIVING UNDER CANVASS WITHOUT FANS

DURING SUMMER

256. While admitting the issue of Ice at the scale of 450 gms per men per day for maximum of 78
days (continuous or broken periods) during summer every year, it should be ensured that:-
(i) The temperature and relative humidity for a period of 10 days or more falling within the
period, is as given in Para 2 of appendix to AFO 160/1971 as amended from time to time
and that where the atmospheric conditions are less severe and issue of ice is recommended
by the medical authorities on the basis of the nature of their duty etc. Air HQr's approval has
been obtained.
(ii) the personnel are actually living under canvass without fan.
(iii) the issues are made subject to the sanction of local commander on the recommendation of
the local medical authorities that non issue will cause real distress.
(iv) issues are discontinued as soon as climate condition no longer warrant continuance.
(v) issues are not made where electric coolers are provided.
(vi) the issues have normally been restricted between 15thMay and 31stJuly and that any
advancement or put back of the period is authorized, by local commander on the
recommendation of their medical advisers, subject to the provision that the total number of
days for which the Ice is issued does not exceed 78 days.

FUEL FOR HOT WEATHER BATHS & WASHING FACILITIES FOR AIRMEN

257. It will be seen that the fuel for provision of hot water for baths and washing facilities for
airmen has been drawn at stations where considered necessary by the station commander on
the recommendation of the local medical authorities and at the scales laid down by the

150
 Government. Also that the dates of commencement and the termination of such issues as
published in station orders are adhered to.

FUEL FOR WARMING AND DRYING PURPOSES

258. It will be seen in audit that :-
(a) the free issues of fuel for warming and drying purposes are made only to entitled individuals
etc. as laid down in S.R.S.
(b) the class of fuel issued, e.g. firewood, coal steam, oil fuel, kerosene oil etc. the period
during which the fuel is to be issued , and the scale of issue has been sanctioned by the
station board subject to the restriction that the charcoal is not issued ordinarily for warming
purposes.
(c) the quantities issued are correct with reference to the number of small and big fireplaces
and to the period for which the fires are authorized to be lit as published in the unit /station
order.
(d) the total quantity struck of charge agrees with that shown in the Fuel register and that the
total quantity admissible is not exceeded.
(e) Certificate is recorded in case fire places are burned on Sundays and Holidays.
NOTE : As the scales given in S.R.S. are as a general guide only, it will be seen that the maximum limit
as laid down therein are not drawn as a matter of course.

CHARCOAL FOR UNIT DHOBIES

259. At the Air Force Units /Stations where washing services in kind are provided to Airmen and
dhobis are employed for the purpose, it will be seen that a scale of monthly issue of charcoal
for ironing purposes has been laid down by Board of Officers with due regard to the limit
prescribed in S.R.S. and the issues do not exceed the scale so fixed.

A.S .C
.C.. SUPPLIES FOR TECHNICAL PURPOSES
A.S.C

260. Issue of items of A.S.C. Supplies to different sections for technical purposes e.g. issue of ice
for preservation of delicate instruments and stores against heat in summer is authorized vide
Para 2 chapter 34 IAP [Link] the audit of issues for the aforesaid purpose it will be ensured
by the LAO's that the issues are made at the prescribed scales and to the sections concerned
as decided by the board of officers assembled for this purpose.

OIL FOR LAMPS

261. It will be seen in audit that:-
(i) Oil is not drawn for those buildings for which electric lights are in use.
(ii) the number of lamps and lanterns for which oil is drawn is with in the scale fixed by the
standing Barrack committee (with reference to barrack and hospital schedules, other
regulations etc.):

151
 (iii) Oil drawn is in accordance with the authorized scale and for the daily number of hours for
burning the lamps as fixed by the committee;
(iv) The same quantity of oil admissible is not charged of monthly as a matter of course (e.g.
during the period when there are large number absentees, when the necessity for expending
the same quantity of oil may not exist.)

AUDIT OF MANUSCRIPT REGISTER OF ISSUES OF MILK TO PERSONNEL

EMPLOYED ON DUTY INVOLVING RISK OF LEAD POISIONING AT AF UNITS.

262. That personnel (including civilians) engaged on duties mentioned below, involving handling
of lead with the attendant risk of lead poisoning handling of oxidizer or fuels of S.A.G.W.
Squadrons are entitled to the issue of 0.280 litter of milk per head per diem .
(a) personnel engaged in lead painting or required to handle lead paint.
(b) personnel engaged in occupations involving risk of lead poisoning.
(c) personnel engaged in the treatment of stores with cellulose nitrate dope.
(d) inspections staff who are engaged in inspection work, during the manufacturing and filling
and /or boiling out explosives of a poisonous nature and personnel actually engaged on
manufacturing and filling of explosives of a poisonous nature.
(e) Personnel who are employed on duties which involved handling oxidizer and fuels of
S.A.G.W. Squadrons.
It should be seen in audit that the issue of milk is regulated as under in respect of the above
personnel :-
(i) those employed on duties continuously for 30 days or more for the actual period of
their work.
(ii) those employed continuously for 15 days or more on such duties, but less than 30
days, irrespective of whether the period in question is in one calendar month or is
spread-over two calendar months-30 days.
(iii) those employed on such duties for less than 15 days-for days on which they are so
employed.
(iv) the local medical authorities have certified that the duties on which the personnel are
engaged involved handling of lead with the attendant risk of lead poisoning.
NOTE 1 : Milk is also issued on Sunday/holiday and leave falling within the stipulated period of the
engagement of the personnel and the total period including these days will by reckoned towards calculating
the period of engagement.
NOTE 2 : The term " Personnel " used in the above period relates to airmen only and not to officers.
262-A The OI/C Accts Section of the unit will maintain a manuscript Register as per format given
in Appendix "G" to AFO 35/84 as amended from time to time, wherein full details of cash
allowance in lieu of ration paid to the officers upto and including the rank of Air Cmde/re-
employed officers/Honorary Commissioned Officers and MNS Officers during will be
recorded.

152
It will be seen in audit that :-
(a) The register is complete in all respect, providing a separate page for each officer.
(ii) An alphabetical index showing name, rank and service no. of the officer and page no.
has been maintained in the opening pages of the register.
(iii) All entries made in the register are to be verified with the respective PORs.
(iv) There is no discrepancy between the entries in the register and respective PORs.
(v) The items and amount shown in the register are linked with and are identical to the
once shown in the vouchers etc. scheduled by the Imprest Section of the PCDA(AF)
Dehradun.
(vi) The register has been reviewed periodically by the OI/C.

153
 CHAPTER XI

HOSPITAL ACCOUNTS

Topics Para
List of Accounts and Documents 263
General 264
Admission and Discharge Book (including Detailed cases) 265
Hospital Diets and Extras 266
Check of Diet Sheets of Wards (IAFM1282) 267
Check of Daily ward requisitions (IAFM1266) 268
Check of Forms 1268- Monthly summaries of Diets and Extras and
F-159-S(Reverseside) - Store Keeper Diet Room 269
Audit of Diets and Extras 270-275
Oil for lamps 276
Check of Anti Malarial expenses Book and DDT Spraying Register 277
Sanitary Stores expense Book 278
Register for X-Ray Examination 279
Register of Work Done on Payment 280
Family Welfare Planning Centre 281
Expendable and non-expendable Stores Register of Forms 823,
Register of vouchers 282
Hospital Laboratory 283
Audit Drills and Auditable Documents in respect of Dental Centre 284

LIST OF ACCOUNTS AND DOCUMENTS

263. A list of accounts and Documents to be maintained in connection with Hospital Accounts is
given in Appendix VI of this manual.

GENERAL

264. The checks as laid down in Chapter IX of this manual will be exercised on the documents
maintained for the accounting of medical and surgical equipment (including X Ray Equipment,
Dental Medical Equipment and Hospital Laboratory Equipment). For the audit of other
accounts and documents which are peculiar to Hospital Accounts, the instructions are given
in the succeeding paragraphs.

154
ADMISSION AND DISCHARGE BOOK (INCLUDING DETAILED CASES)

265. It is a record showing the date of admission and discharge of a patient and the disease of
which he was admitted into the hospital. It will be see that :-
(a) Only entitled persons have been admitted.
(b) Private individuals (non -entitled) have been admitted with the prior sanction of the O.C.
Station on payment at the appropriate rates;
(c) The Hospital Stoppage Rolls (IAFA-55) have correctly been prepared with reference to
entries in A & D Register (in case of (1) airmen where they are treated for sickness held to
be due to their own fault (2)officers and civilians who are not entitled to free hospital
treatment and non-entitled persons) and that in the case of detained patients, the number of
days for which an individual is detained in hospital is also shown in column 5 thereof.
(d) Number of days shown in the H.S. Rolls is correct with reference to A & D Register.
For this purpose it will also be seen that when patients have been transferred from other
hospitals for specialist treatment or for other reasons, the period of treatment already
undergone has been indicated in the remarks column of 'Admission and Discharge register'
for reckoning the 30 days period for the purpose of recovery of hospital stoppage in case the
disability is held to be due to the fault of the patient.
NOTE 1:- The Correctness of these entries will be test checked by referring to the transfer documents
of the patients.

NOTE 2:- Recovery of hospital stoppage in respect of all categories of personnel (including non-
entitled) will commence from the day following the date of detention /day of admission in the
service hospital and continue upto and including the day of discharge of the individuals therefrom.
When a patient is admitted to hospital after 14.00 hours on a day and discharged on the same day,
no hospital stoppage will be recovered but when a patient is admitted before 14.00 hours and is
discharged on the same day, a fraction of the authorized rate of hospital stoppage will be levied and
the fraction will be decided by the O.C. of the hospital concerned.
(e) Hospital Stoppage Rolls (IAFA-55) have been sent to the respective accounting authorities
and their acknowledgement are on record.
NOTE :- The rates of hospital stoppage are laid down in Appendix 5 to the regulations for the Medical
Services (1962) and AFO 143/77 as amended from time to time.
(f) Recoveries of hospital stoppage rolls at appropriate rates have been effected from the non-
entitled persons and the amount credited to Government with the least possible delay.
NOTE:- The rates of hospital Stoppage for non-entitled personnel are laid down in Annexure V of
Appendix A to AFO 143/77 as amended from time to time. Recovery rates, in respect of Dental Treatment
for non-entitled personnel are contained in para 72 of Appendix 5 of Regulations for the Medical Services
of the Armed Forces.

155
HOSPITAL DIETS AND EXTRAS

266. The audit procedure similar to that prescribed in Chapter X for audit of the ration portion of
ration and Forage Return (IAFA 1519) will, in general, be followed. The scales of diets and
extras including diet for T.B. Patients at Hospitals and Stations sick quarters are laid down in
AFI 1/S/70as amended from time to time. The principal on which the dieting of patients in
hospital is based is that subsistence diet is drawn for patients admitted after 1200 hours for
the day of admission. On subsequent days patients are placed on one of the standard diet or
on 'No Diet' with extras. It will be ensured that patients are subsisted on complete diets,
doing away with extras as far as possible. Extras are provided to meet the needs of special
cases, i.e. cases of patients, the nature of whose illness requires special dieting. Extra are not
permissible for patients on ordinary diets. It will therefore, be seen that these have only been
issued for patients on other prescribed classes of diets and also for those on 'no diets' and that
too if the Medical Officer Incharge has certified it to be essential.

NOTE 1 :- All patients including families of Officers and airmen admitted in A.F. Hospitals will
be given the same scale of diet as applicable to Airmen, Children below age of 5 years will be
given "No diet" and those below 10 and above 5 years will be given half the scale authorized for
adult.

Note 2 :- Breast fed babies of Service personnel whose mothers are admitted into the hospitals as
patients and are advised on medical grounds not to suckle their babies will be issued infant food
(Glaxo Milk etc.)

NOTE 3:- All sick attendant will be issued with 'O' diet.

NOTE 4:- So long as "extras" carries the authority of the medical officer as required under the rule
and does not violate the restrictions laid down in AFI/1/S170as amended from time to time, the
issues should not be objected to in audit, irrespective of whether they are drawn of separate items
or as ingredient for making a particular article of diet. It is, however, open to audit to raise questions
of any lavish issues of extras or of an abuse of the powers of the medical officer from the financial
advice aspect.
NOTE 5:- If any authorized extras are not in stock, substitutes will be issued in lieu. In addition,
Medical Officer may demand any item/ proprietary supplementary food like Horlicks, Ovaltin,
Bournvita, Complan. Casilan B-12 and so on for the patients in service hospital even if the items
demanded are not included in Annexure 'B' of AFI/1S/70 as amended from time to time or in ASC
specifications as a part of treatment.

CHECK OF DIET SHEETS OF WARDS (IAFM-1282)

267. The following checks will be exercised on Diet Ward Sheets (IAFM-1282):-

(i) Castings for the detailed month.

(ii) General scrutiny for all the three months to verify completeness of the Form, i.e., whether it
is signed by the Medical Officer Incharge daily and also countersigned at the end of the
month by the Commanding Officer.

156
 (iii) General scrutiny for all the three months to ensure extras are not drawn for patients placed
on 'ordinary' diet and diets and extras prescribed are not in excess of the authorized scales.
(iv) A detailed checked for the three days selected at random in the Ward Diet Sheets pertaining
to the month the accounts of which are audited in detail as per selection order with a view to
ensure that the number of diets under each category and extras are correctly consolidated
and transcribed in Daily Ward Requisitions (F.1266)
(v) Entries in Ward Diet Sheets for the three days as per selection order will be linked into
admission and Discharge Book with a view to ensure that all admission and discharges are
correctly reflected and that the number of diets drawn agrees with the actual number of
patients for that period as seen from Admission and Discharge Book (Sl. No. of the Admission
and Discharge Book is quoted against the name of each patient in the Diet Sheet F. 1282 in
the margin).
(vi) When patients are admitted or discharged in the middle of the month, the Blank columns
are scored through in ink to avoid interpolation.

CHECK OF DAILY WARD REQUISITIONS (IAFM-1266)

268. Each day the Daily Ward Requisition for Diets and Extras (IAFM-1266) is prepared by each
ward separately from IAFM-1282 (Ward Diet Sheet). The number of diets under each type
e.g. 'F' (Fluid) 'O' (ordinary) 'C' (Convalescent) 'S' (Subsistence). "T.B. Patient' required for
each ward is given in the left side of the Daily Requisition Form and the items of "Extras
Demanded" are shown in the right hand side of that Form. These requisitions for the different
wards are signed by Medial Officer Incharge of the wards. These are considered as the basic
documents for drawal of Diets and Extras from Ration Stores. The following audit checks
will be exercised on this documents:-
(i) Daily Ward Requisitions (F.1266) for all the three months will generally be scrutinized to
see that they are duly signed by the Medical Officer in charge of the ward.
(ii) A comparison of the Ward Diet Sheets with Ward Requisition for three days to ensure that
the No. of diets under each category and extras is correctly carried forward.
(iii) A check of 10 days fogures from ward Requisitions into 59.S (reverse) for diets and into
IAFM-1268 for extras to ensure that the No. of diets and total No. of Extras are correctly
transcribed into F.159-S and F.1268 respectively.

CHECK OF FORMS 1268-MONTHLY SUMMARIES OF DIETS &EXTRAS AND

F.159-S (REVERSE SIDE) STORE KEEPERS DIET RECORDS

269. The following audit checks will be exercised on F.1268 and store keepers diet records on the
reverse of 159-S:-
(i) Casting for the month selection for detailed audit.
(ii) Checking of issues of diets and extras for the full month selection for detailed audit with
reference to the prescribed scale laid down in current AFIs.

157
AUDIT OF DIETS & EXTRAS
270. In auditing the records for diets and extras, it will also be seen that:-
(i) The total No. of diets shown in the monthly summary of Diets and Extras for the month
selected for detailed audit agrees with the Bed Statements for that month and the discrepancies
(due to late arrival of patient., etc.)
(ii) Wines, Spirits and tinned articles have been accounted for according to their respective
make and brand.
(iii) In the case of children between the age 5-10 years, half the scale of diets or extras authorized
for adults has been drawn and no diet has been drawn for children under 5 years.
(iv) Free issues of diets and extra have been made only to persons entitled to the concession.
(v) Hospital diet is not issued to patient detained in hospital for observation as such patients are
subsisted on Extra.
(vi) The issue of substitutes is regulated under the provision of paras 3,4 and 7 of Annexure 'C'
to AFI 1/S/70as amended from time to time.
(vii) Any deviation from prescribed scales made by a hospital opened for officers on active
service or on operations not entailing mobilization are covered by the scales fixed by the
Force Commander and reported to Air HQs (Medical Directorate).
(viii) Economies, where possible, have been effected by compiling in advance weekly menu for
dining Hall patients as indicated in para 6 of Appx. 'C' AFI 1/S/70as amended from time to
time.
271. It will be ensured that over issues of Hospital diets and extras are either paid for or regularized
under schedule III Appendix II Part-III Air Force of [Link] I.

272. To provide rations for newly admitted patients Hospitals are authorized to keep reserve ration
based on the monthly average number of patients during the preceding month. It will be seen
that:-
(i) Fresh & dry rations are not kept beyond the extent mentioned below:-
(A) Fresh articles of ration
One day's reserve of ration at the discharge of the Commanding Officer (viz. Milk, eggs,
fruits etc)
(B) Dry Ration articles
(a) At station where ASC supply Depot / Deptt. Are located, for a minimum of 3
days and maximum of 10 days.
(b) At other stations for a minimum of six days and a maximum of thirteen days.
(ii) A book is maintained by logistic officer of the A.F. hospital showing overdrawals and under
drawals and their adjustments at the end of the months.
273. It will be seen that the number of tea rations for Medical Assistants (including under training
Medical Assistants) and Nursing Orderlies employed on night duties have been correctly

158
 drawn according to the appointments notified in hospital orders and the issues are in accordance
with the scales.

274. If the percentage check as prescribed under the existing orders indicates the desirability of
further examination of the accounts, the scope of audit checks should be extended at the
discretion of the local Audit Officers in the manner laid down in para 251.

275. In addition to the checks prescribed in preceding paragraphs it will be seen that:-
(i) No fuel in kind or an allowance in lieu is admissible to Lady Sub-assistant Surgeons for
cooking purposes and that those Lady-Sub-assistant Surgeons who are allotted Govt. Quarters
are issued fuel in kind for warming and drying purpose only as laid down in Table23 SRS
(1967 reprint).
(ii) when coal steam is issued in lieu of firewood for cooking ranges installed in A. F. Hospitals
suitable for burning coal, the cost of the former delivered at a cooking range is cheaper than
that on the latter;
(iii) The minimum fuel requirements for each type of cooking range installed in A.F. Hospital
has been assessed by a Station Board and notified in Station Order.
(iv) The issue of firewood is restricted to the minimum laid down in regulations when the number
of patients is less than twelve on each category for whom separate kitchens are maintained
vide notes 5(a), Table 16 S.R.S.(1967 Reprint)
(v) Where two cooking ranges are installed in a hospital the bigger one is used only when the
No. of patients in the hospital does not admit of cooking being done on the smaller range.
Oil For Lamps
276. It will be seen that:-
(i) no oil is drawn for lamps in unoccupied wards.
(ii) oil is issued in accordance with the authorized scales and that oil kerosene 1st quality is
issued for lighting purpose only in wards, surgeries, etc. of hospital as recommended by
Medical Authorities.
(iii) the No. of lamps kept burning in the wards and latrines, etc. is not unreasonably large
keeping in view the number of patients in each ward.
NOTE: - The provision at (i) to (iii) above apply to unelectrified hospitals.

CHECK OF ANTI-MALARIAL EXPENSE BOOK & DDT SPRAYING REGISTER

277. It will be seen that the issues are made in accordance with the prescribed scales and a proper
account of receipts and issues has been kept.
Sanitary Stores Expense Book
278. It will be seen that a proper record of receipts and issues has been kept and that only authorized
stores for sanitary purpose (viz., Hygienic Chemicals) have been drawn for the purpose.

159
NOTE:- Details of items supplied as Hygiened chemicals and their provisioning by the ASC supply
organization are given in AFO 191/68 as amended from time to time.

Register of X-Ray/ECG/USG/CT Scan and other such Examinations

279. It will be examined to see that all persons treated in the diagnostic Laboratory are entitled to
free treatment and that the work done on payment has been included in the register maintained
for the purpose.

Register of work done on payment.

280. The register of work done on payment will be examined to see that fees have been charged
correctly and that the amount realized on this account credited properly to Govt. through the
public accounts.

Non-entitled patients who are admitted in AF hospital for regular treatment and pay hospital
stoppage are not required to pay such fees as hospital stoppages are intended to cover all the
facilities detailed in paras 284, 285, and 286 RMS AF 1962 Edn. Including X-Ray and other
such examinations carried out for diagnostic purpose on the advice of the Medical Officer in
Charge.

Non- entitled patients who ask for only X-Ray and other such examination in the A.F. Hospitals
and do not need any other form of Medical or Surgical treatment from A.F. services will be
charged X-Ray and other such examination fees as follows:-
(a) At stations where civil or private X-Ray and other such plant exist at the rate laid down in
the Govt. of India, Ministry of Defence letter No-3122/DGA FMS /DG-3A/7526/ D(Med)
dated 15-09-1955.
(b) At station where there are no civil or private X-Ray and other such plants, the rates laid
down in Govt. letter referred to at (a) above may be modified by O.C. A.F. Hospital at his
discretion subject to the provisions contained in Govt. letter dated 15-09-1955.

FAMILY WELFARE PLANNING CENTRE

Register of Forms -823
281. This register will be scrutinized to see that all the forms-823 raised from time to time are
duly entered in the register under the signature of the O I/C Family Welfare Planning Centre.

Forms-823- Expendable and non-expendable store ledger :-

These forms will be audited to see that:
(i) (a) non-expendable stores viz., furniture, surgical stores, audiovisuals aids, educational
stores etc., have been accounted for therein.
(b) a separate form has been opened for each item.
(c) The forms are arranged in numerical order and kept in binder.

160
 (d) The items when issued to Family Centre have not been struck off charge but shown
on a separate internal loan register.
(ii) Expendable items, drugs and dressing and contraceptive stores have been accounted for in
the same manner as in the case of non-expendable stores.
(iii) All entries in Form-823 are supported by [Link] / I. Vs etc.
(iv) All alterations / corrections in these forms have been made in red ink duly initialed by the
officer Incharge Stores including the reasons for alterations.
(v) A record is also maintained for the expendable items in a register called "locally purchased
expendable item register" which will indicate all details in respect of total also ledger page
No. in which the quantity so purchased has been taken on charge.

Re gister of R.V.s /[Link] . C

R.V.s .[Link]
.[Link].. / C
[Link] .[Link]
.[Link]..
[Link]
In this register it will be seen:
(i) That Vrs have been numbered consecutively according to the date of receipt / issue etc. of
the Equipment.
(ii) That a fresh series of No. has been commenced for each accounting period.

[Link]. / [Link].
Audit of [Link]. will be carried out to see:
(i) That the [Link]. Nos. have been duly entered in the register of [Link].
(ii) That the articles enumerated therein have been taken on charge in the proper accounting
ledger citing reference to the consignees I.V. Nos. etc.
(iii) That the [Link] do not remain unfinalised.

AUDIT OF [Link] / [Link].

Audit of [Link]. /[Link]. will be carried out to see that:-
(i) [Link]. /[Link]. have been duly entered in the Register.
(ii) That all entries enumerated therein have been struck of charge in the respective accounting
ledger.
(iii) That [Link]. are raised monthly and auctioned in the expendable stores ledger once in a
month, and that the requisite certificate regarding correctness of quantities expended are
recorded therein.

Audit of Service Books of Civilian

The record of service in respect of all civilians paid from Family Planning grant are permanent or
temporary but are likely to be employed for a period of more than one year is maintained in standard
service book form A.T.C.V 4.

161
STATION HYGIENE ORGANISATION
Expendable & non-expendable stores, register of forms 823, Register of vouchers.
282. The point laid down in regard to the documents for Family Welfare Planning Centre will also
apply in this case.

Anti malaria Expense Book & D D T spraying Register and Sanitary Stores Expense Book

It will be seen that:-

(i) That all the entries in the Register are supported by IN RVs.
(ii) That the solution of DDT & K. Oil has been prepared in right proportion as laid down in the
instructions given by Air Hqrs.
(iii) That the balances of Stores have been correctly struck.
Hospital Laboratory
283. 1. Laboratory Medical Equipment and Instrument ledger.

It will be seen that:-

(i) All the entries are supported by [Link].

(ii) The balance are not finally SOC but are issued to the Laboratory on Loan Card.

(iii) Items held on charge within the scales.

2. Expense book

(i) It will be seen that Expense Book is maintained for all the expendable items drawn
from the store on the authority of proper voucher.

3. Register of Chemical & Bacteriological examination.

(a) Register is maintained properly.

(b) No test has been carried out in respect of non-entitled personnel.

4. Register of work done on payment:

(i) It will be seen that all the entries are supported by Cash Account Voucher Nos.

(ii) It will be ensured that the rate and amount charged in each case is correct and that
the recovery is effected promptly.

162
AUDIT DRILL AND AUDITABLE DOCUEMENTS IN RESPECT OF DENT
UDITABLE AL
DENTAL
CENTRE.

284.

No.1 Expendable Medical Store Ledgers The Ledger accounts are maintained on
FS823
No.2 Non-expendable Medical Stores Ledger The Audit check as laid down in para of
including instrument ledger AFLAM will be exercised.
No.3 Dental Appliances Register to entitled The register is maintained to record the
personnel. issues of artificial dentures appliances to
entitled personnel, i.e. personnel entitled to
take such treatment free of charge.

It is seen in audit that the appliances are

issued to entitled personnel free of cost.
No.4 Dental appliances Register for work done The register is to be maintained to record
on payment. the treatment and issues of artificial denture
appliances to personnel who are entitled to
the same on payment. The following audit
checks are exercised:-

(i) That the individual are entitled for

treatment / issue of appliances on
payment.

(ii) That the rate and amount charged in

each case is correct.

(iii) That the amount charged has been

credited to Public Fund.
No.5 Dental Treatment Register The register is to be maintained for
recording the free treatment (other than
issue of artificial dentures appliances). The
following audit checks will be exercised :-

(i) Treatment has been given only to the

entitled personnel.

(ii) Treatment to non-entitled personnel

has been given with the prior
permission of the O.C. station on
payment as appropriate rate.

163
No.6 Recovery Form (F868A) The audit of these forms is to be conducted
with reference to the entries recorded in the
register for artificial dentures appliances on
payment and treatment register. The
following audit checks are exercised :-

(i) That all the forms in respect of

effective personnel have been
forwarded to AFCAO for recovery,
through IRLAs and their
acknowledgement obtained.

(ii) Recoveries in respect of individuals

other than effective personnel e.g.
family members are promptly credited
to Public Fund (IAFZ01505).
No.7 Expense Book, Snap Check Register, Snap The marginally noted documents are
check Sheets Packing Material Register, maintained and audited with reference to the
Packing case Register Manifold, Register of audit of equipment/equipment Accounts etc.
IN/IVs In/RVs/[Link]/Rvs, Ex/IVs, Losses as contemplated in various chapters of
Register Loss Statement Register for DRS AFLAM and IAP 1501.
(in/out) Manuscript Register for Medical
Stores Cards, Files of In/RV, In/IVs, EX/IVs,
EX/RVs & CVs Railway forms and civilian
documents etc.

164
 CHAPTER XII

LIBRARY AND LABORATORY ACCOUNTS

Topics Para
List of Documents 285
Accounting 286 - 290
Scrutiny of Card Inventory 291
Accession Register 292
Annual Stock Taking 293
Audit Manuscript Register of Educational Equipment 294
Magazines Register 295
Disposal of Newspapers and Magazines etc. 296
Purchase of Books out of National Defence Funds 297
Laboratory Accounts 298

LIST OF DOCUMENTS

285. The list of documents maintained by Reference and Technical Libraries of A.F. Units and
which are subjected to audit are given in Appendix VI of this manual.

ACCOUNTING

286. Books and Publications are regarded as 'B' Class Stores for purposes of accounting.

287. Educational Books for unit Libraries are obtained as follows :-

(a) By direct purchases made by units after due authorization.
(b) By transfers from other A.F. Units/Command HQrs. Library.
(c) Books are normally purchased from educational training grant provided by the Government
but are sometimes provided through other sources such as Publication and Forms Store for
promotion examination.
288. The following will be type of Books purchased :-
(i) Works on Air Force, Naval, Army and General Military subjects.
(ii) Scientific, Engineering, Aviation Books Space exploration and books of general interest on
health and medicine.
(iii) Books on social studies such as Education, History, Political Science and also a selection of
wide range including current affairs, Geography, Biography, etc.
(iv) Standard works of literature.
(v) Foreign Language Publications.

165
 (vi) Books of general reference, reports etc.

(vii) Text books for cadets and trainees.

NOTE :-Books of purely recreational purposes will not be purchased.

289. For the books which are purchased by the units, the audit section concerned of the CDA (AF)
will forward the relevant bills received with the cash accounts of the unit to the LAO / A.L.A.O.
(AF) for verification of Credit. "It will be ensured that all the books have been taken on
charge in the Accession Register and that a Card Inventory AIFF (ED) 2207 has been raised."

290. In the cases where the books are transferred from one unit to another the Education Officer of
the consignor unit is required to supply a copy of the list of books transferred to his L.A.O.
The LAO of the consignor unit will schedule the list to the L.A.O. of the consignee unit to
enable the latter to verify that the books have been brought on charge. It will be seen that no
text or reference book has been transferred from one command to another without prior
sanction from Air HQrs.

SCRUTINY OF CARD INVENTORY

291. The inventory cards IAFF (ED) 2207 will be scrutinized generally to ensure that all reference
numbers in the inventory are in sequence or that gaps are covered by authorities for write off/
strike off or in cases of books transferred to other units, the same are included in the list of
such books received from the unit. One Card will be raised for every book (irrespective of
the number of copies, if any, of the same book) added to the Library, but separate cards will
be made for different editions of the Book.

ACCESSION REGISTER

292. It is a manuscript register showing the complete inventory of the books added to the Library.
This register in a chronological order, provides a complete record of books purchased giving
each a serial number called the "Accession Number' Identical copies of the same book get
separate Accession Numbers. The Accession Numbers once given to a Book will not be
allotted to another book even though the book has been struck off/written off charge. The
accession number is entered on :-
(i) Title page of the book and at some other page arbitrarily fixed by the Library.
(ii) IAFF (ED) 2207.
(iii) IAFF (ED) 2208.
(iv) All copies of the Bill.
It will be seen in audit that :-
(i) Details of all books purchased as per IAFF (ED) 2206 have been duly entered in the
accession register.

166
 (ii) Against each book which has been lost or struck off suitable annotation giving reference
to the relevant vouchers, Board of Officer's proceeding etc., are indicated.
(iii) Periodical stock verification prescribed in Government orders has been carried out
and a certificate to that effect endorsed on the register by an officer, and
(iv) Adjustment of surplus or deficient books has been carried out promptly.

ANNUAL STOCK-TAKING

293. Stock of books and educational equipment will be checked at least once annually before the
end of a financial year by independent officer detailed by the Commanding Officer, and
officer-in-charge Library will be in attendance. A stock-taking check will also be made when
one officer relieves another of the responsibility of the library. The results of stock-taking
will be recorded on IAFF (P) 28 which will be examined in audit to see that :-
(i) Any books or publications or other items of Educational equipment found surplus or
recovered since the last stock-taking have been duly brought on charge.
(ii) Cost of books issued to individuals on loan and lost by them has been recovered and credited
to the Public Funds of the Unit.
(iii) Books lost from the stock classified as loss not due to theft, fraud, or neglect by the Board
of Officers have been regularized under the orders of CFA in the manner indicated in para
14 of AFO 06/2005 as amended from time to time. Where an individual is to be charged
with the loss, the concerned IAFF (Q) 440-B has been annotated "to be credited to Public
Funds" and a copy of the actioned F (Q) 440-B has been forwarded to the Command
Education Officers/Deputy Director of Staff duties, Air HQrs. (in case of loss of publication
for promotion examination).
NOTE :- The value of the book to be charged in such cases will be assessed as follows :-
(a) when a book is not a part of a set Publisher's Price plus 10% departmental charges.
(b) when a book is a part of a set and the individual has failed to replace the lost volume
- Publisher's price of the entire set plus 10% departmental charges.
(iv) When the stock taking party certifies (and the proceeding have been approved by the CO)
that certain books or items of Educational Equipment have become unserviceable through
fair wear and tear, it will be seen that CIV is raised to strike them off charge.
(v) The sale proceeds of worn-out items which have been recommended for 'Strike off' are
credited to Govt. For this purpose the audit section concerned in the Main Office will schedule
the cash vouchers on which sale proceeds of worn-out books etc. are credited to Government
to the LAO(AF) concerned for verification and return thereof to the Main Office.

AUDIT OF MANUSCRIPT REGISTGER OF EDUCATIONAL EQUIPMENT

294. All items of educational equipment purchased out of educational grant are required to be
accounted for in the manuscript register maintained by the Education Officer/Officer-in-
Charge Education. It will be seen that the register is properly kept and the items held are
annually stock taken.

167
MAGAZINES REGISTER

295. All Newspapers, Journals, Magazines, e-books purchased out of the Educational Training
Grant are required to be accounted for in a Manuscript Register. Separate pages will be
opened for each newspaper, journal or magazine. This register will be scrutinized to see
that:-
(i) the amount of subscription paid and the period for which the same is paid is noted against
each magazine etc.
(ii) all the issues for which advance subscription are paid are duly received in accordance with
the frequency specified and the non receipt of any issue is being pursued to finality with the
suppliers.

DISPOSAL OF NEWSPAPERS AND MAGAZINES ETC.

296. It will be seen that the sale proceeds of newspapers, magazines, etc. are credited to the
Government and not to the educational training grant. The magazines of technical nature
which are required by the unit for reference etc. should not be passed for sale but it will be
seen that those are kept on charge in manuscript register kept for the purpose.

PURCHASE OF BOOKS OUT OF NATIONAL DEFENCE FUND

297. Books purchased out of National Defence Fund are to be taken on charge in a separate
Accession Register. A stamp indicating that these books have donated by the National Defence
Fund is to be marked at three different places in each book. The normal accounting procedure
as in the case of other books will be followed.

LABORATORY ACCOUNTS

298. It will be seen that :-

(a) All items Laboratory Equipment are brought on charge in the Stock Record Cards.
(b) All Stock Record Cards have been entered in the Register of Stock Record Cards.
(c) Voucher Registers with separate series of vouchers numbers are maintained.
(d) Laboratory Equipment is demanded according to scales or specific authority.
(e) All items of A & B class Stores when issued to officer I/C Laboratory have been accounted
for in A-in-U Ledger maintained by Accountant Officer and in the Inventory IAFF Q 407
maintained by Officer-in-Charge Laboratory and normal check as laid down in chapter 12,
IAF 1501 are exercised.
(f) All 'C' class stores issued to Laboratory have been accounted for in Expense Register.
(g) Annual Stock-Taking of items held on charge by Senior Education Officer is carried out as
per procedure laid down in Chapter 25, IAP 1501.
(h) Loss or damage to Laboratory Equipment are duly investigated and necessary recovery/
write off action taken as per procedure laid down in Chapter 22 and 23, IAP 1501.

168
(i) 'A' and 'B' class Stores becoming unserviceable through fair wear and tear are duly certified
to that effect by specialist Officer.
(j) IAFF Q 403/CIV raised to strike off charge unserviceable Equipment found beyond
economical repair is countersigned by C.O.

169
 CHAPTER XIII

METEOROLOGICAL ACCOUNTS

Topics Para
General 299
List of Documents to be audited 300
Accounting of Met. Equipment on receipt 301-302
Audit of issue of Met. Equipment 303
Audit of Units returns 304
Loans 305
Stock taking 306
Losses etc. 307

GENERAL

299. Meteorological Equipment consists of special and very delicate instruments. Met Equipment
is not provisioned, stored, handled or accounted for by the IAF Equipment Organization- but
by the IAF Met Organization. The Deputy Director of Meteorology-I at Air Headquarters,
New Delhi (DD-Met-I, Air HQ) is treated as self accounting for the purpose of dealing with
IAF Met Equipment, accessories, spares and connected packing material and is granted the
financial powers of O.C Unit (viz. Rs.100) for write off of losses (vide AFI 282/46 as amended
from time to time). All Met Equipment will be received, stored, handled and accounted by
the Central Met Stores, A.F. Station, New Delhi.

LIST OF DOCUMENTS TO BE AUDITED

300. A list of accounts and documents to be maintained in connection with Meteorological account
is given in Appendix VI of this Manual.

ACCOUNTS OF [Link] ON RECEIPT

301. All Met Equipment received by the Central Met Stores will be entered in the Stores Inward
Book and will be on provisional charge till the said equipment is tested. The maximum time
limit for keeping of stores on provisional charge will be six months, In case the Equipment is
not received after appropriate tests from India Met Department within this specified time of
six months, the stores will be BOC at AF Central Met Stores on SSRCs (FQ468) as vouched
by the consignor. The stores concerned may subsequently be converted into the correct
category on receipt of 'test report' and the SSRCs amended accordingly. It will be seen in
audit that all items are taken on charge finally in stock record cards not later than six months
from the date of their receipt as noted in the stores Inward Book and that conversions of
equipment into correct categories are supported by 'test reports' rendered by India Met
Department.
170
302 Single Stock Record Cards are maintained by the Central Met Stores for all items of
Meteorological Equipment, on which all records of receipts and issues of Meteorological
Equipment are kept. Besides the checks prescribed in paras 83 to 86 of this manual which
will apply mutatis mutandis to Manuscript Register of stock record cards and stock record
cards maintained for accounting Meteorological Equipment, it will be seen that separate
series of SSRCs are maintained for consumable and non-consumable Equipment in
alphabetical order and allotted serial numbers from the Stock Record Card Register. It will
be ensured that all receipt vouchers, return vouchers and transfer are serially numbered every
year from 1st April (e.g. IV No 25/47-48 or RV No. 6/50-51) and are entered in the Register
maintained for the purpose.

AUDIT OF ISSUES OF [Link]

303. Although issues of Meteorological Equipment to A.F Units are made on Form I.A.F.F. (Q)
429 (Ext. Demand, issue and receipt vouchers ), the A.F Units for the purpose of accounting
of such Equipments are treated as Flights/ Sections of Central Met Stores AF (Station) ,New
Delhi. Accordingly the issues of non-consumable equipments thus made after being charged
off from stock record cards are accounted for in Article-in-Use Ledger (IAFF (Q) 1515),
maintained by the Central Met Stores. Similarly, when the equipment is received by the A.F
Units, the same is not brought on charge in Stock Record Cards but is entered in the Inventory
on F.1527. In auditing transactions relating to receipts and issues of Meteorological
Equipment, it will be seen that :-
(i) quantities issued as per vouchers are borne out by Stock record Cards. For this purpose, a
complete audit of all issue transactions for one month in a half year is carried out as laid
down in Appendix IV-B Issue entries.
(ii) Receipted copies of Forms (IAFF (Q) 429) in token of receipt of equipment are invariably
received and filed with the copies retained by the Central Met Stores, after clarifying
discrepancies or breakages, if any.
(iii) Article-in-Use Ledgers action is taken in respect of all issues. For this purpose, while the
actual linking in Article-in-Use Ledgers will be carried out for the month selected for detailed
audit, the other vouchers will be checked to see that annotation to the effect that Articles-in-
Use Ledgers action has been taken, is invariably made therein.
(iv) The holdings as recorded in the A-in-U Ledgers agree with the unit inventories which will
be sent by all the units to the Central Met Stores on 1st April, of each year, together with a
certificate of the holding on 31st March after an independent check of the holding at the
units.
(v) Change of Inventory holders is invariably recorded in the Inventory Register on the basis of
'Nil' discrepancy certificate/list of discrepancies rendered by the units along with Sheet 1 of
the IAFF 1527 (Inventory) duly signed by the outgoing and incoming inventory holders. It
should also be seen in audit that speedy action is taken for reconciling/adjusting the
discrepancies in accordance with the normal rules.
Note 1: Local audit officer in whose audit area the Met Section is located is to see that:

171
 (i) All IAFQ 429 under which the consumable stores have been consigned by the DD Met I Air
HQrs. Are produced for audit by the Met Section.
(ii) Consumable Metrological Store Register is produced for audit by the Section.
(iii) The consumable items consigned on the IAF(q) 429 have been brought on charge on the
Met Consumable Register.
(iv) The issue have been made properly and the balance has been worked out correctly.
(v) The current weather register (C.W.R.S.) are produced by the Section and to see that the
class 'A' and 'B' stores relating to Metrological equipment are being utilized properly and
there is no costly equipment lying unutilized.

AUDIT OF UNITS RETURN

304. Met Equipment returned by units on FQ 429 is categorized by DD-MET-I (Air HQ) or by a
MET Officer deputed by him. Where testing/repair/calibrations is considered due, the
equipment is sent to India MET Department and action is taken as on 301 above, before
bringing the same on charge on SSRCs.

The following audit checks will be carried out in the case of return of Meteorological
equipment by AF Units :-
(i) 16 ½ % of the external receipt vouchers will be selected for linking of credits in the Stock
record Cards
(ii) Similarly, in respect of the receipt vouchers pertaining to the month selected for detailed
audit, it will be seen that 'Article-in-Use' Ledger action in those cases has been taken whilst
ensuring that the other vouchers been annotation to the effect that these have been actioned
in those ledgers.
It will be ensured that where Meteorological Equipment is transferred from one unit to another
with the prior approval of D.D Met I (Air HQ) necessary adjustment on the basis of an extra copy
of Form IAFF (Q) 429 supplied to Dy. Director ( Meteorology) Air HQrs is effected in Article-in-
Use Ledgers maintained by it. Both the Units concerned will amend the inventories in respect of
such transactions.

LOANS

305. Loan of IAF Meteorological Equipment to Non-IAF Units and of Meteorological Equipment
from other Departments to Air HQrs- Loan of MET Equipment to the other services or to the
Departments of the Ministry of Defence, can be made under the approval of CAS or under
the approval of the authority to whom the CAS may delegate this power, Loans of MET
Equipment to agencies outside Defence Sector require the concurrence of the Ministry of
Finance (Def/Air). The period of loan will ordinarily be six months, which may be extended
for further period of six months each time. In other respects the general rules governing
loans will be applicable

172
 Items of Meteorological or Scientific Equipment urgently required may be obtained on loan
by the DD-MET-I Air HQrs, from other services or Government Departments or Institutions.
It should be seen that Equipment so obtained is returned before the expiry of the loan period
or as soon as the need is over.
Other audit checks as laid down in paras 100 and 104 of this manual would apply mutatis
mutandis in these cases also.

STOCK-TAKING
306. Stock-taking of MET Equipment held in the Central MET Stores will be arranged once a year
by DD-MET-I (Air HQrs) Officer-in-Charge Central MET Stores will complete the certificate
prescribed for Officer-in-Charge Stores at the bottom of FQ 405. The posting of stock sheets,
adjustment of surplus/deficiencies regularization of loss or breakage will be done in the normal
manner as for other AF Equipments. Similarly it will be seen that any loss or breakages of
items held by Inventory Holders (i.e. AF Units) noticed as a result of independent physical
check to be carried out once a year are regularized either on Form IAFF (Q) 440-B or on
IAFF (Q) 406 as per orders of the competent financial authority and the balances in Articles-
in-Use Ledgers/Unit Inventories adjusted accordingly.

LOSSES-BREAKAGES OF METEOROLOGICAL EQUIPMENT

307. The following categories of items will be written off/struck off charge:-
(a) Instruments which are beyond repair
(b) Instruments which are beyond economical repair
(c) Items which have deteriorated due to climatic conditions to the extent of becoming unfit for
use.
(d) Instruments broken accidentally (not due to negligence or carelessness of any individual)
(e) Instruments broken accidentally while in transit.
(f) Instruments broken accidentally during acceptance or calibration tests.
In respect of the above mentioned categories, the verification by the DD-Met-I (either by
himself or in consultation with other authorities concerned ) would be adequate for write off/
strike off under the appropriate financial powers.
All cases of loss/damage will be examined by DD-MET-I Air Headquarters and orders will
be issued indicating whether the case is for normal write off/formal investigation/Court of
Inquiry.
In all cases involving theft, fraud, or negligence a formal investigation or Court of Inquiry
will be ordered. The proceedings will be approved by the Director of Meteorology on behalf
of the CAS. In such cases, completed proceedings of formal investigations/Court of Inquiry,
accompanied with a summary of the case is sent to CDA for Audit Report. DD MET-I Air
Headquarters will exercise financial powers as OC of a self-accounting unit. (See para 299
above). When the loss is beyond his financial powers the case will be submitted to the C.A.S
or Government as the case may be , under normal rules.

173
 CHAPTER XIV

MECHANICAL TRANSPORT REPAIR & INSPECTION SECTION

Topics Para
General 308
Vouchers pertaining to A & B Class Stores 309-311
Vouchers in respect of 'C' Class Stores 312
Expense Register of 'C' Class Stores and Petrol Oil Books 313
Audit of job cards for repairs to vehicles 314
Performance appraisal 315
Audit for Register for repair and maintenance of Bicycles 316

GENERAL

308. Consequent upon the transfer of responsibility of 2nd line maintenance of MT Vehicles from
Army to Air Force in respect of Air Force units mentioned in AFO 72/69 as amended from
time to time, the work relating to repair and maintenance of MT Vehicles is being carried out
by these units themselves. To give effect to this arrangement, Mechanical Transport Repair
and Inspection sections have been formed at such of these units which have taken over 2nd
line maintenance. The audit checks as described in the succeeding paragraphs will, in general,
be exercised on the accounts of Mechanical Transport Repair and Inspection Sections.

VOUCHERS PERTAINING TO A & B CLASS STORES

309. Issues to and receipts from Mechanical Transport Repair and Inspection Sections of A & B
Class stores broadly classified under the following headings:-
(i) Tools and general equipment required for use in workshop i.e. Article-in-Use.
(ii) Spare parts like batteries, tyres, engines, Head lamps and other items of a consumable
nature.
310. In regard to the nature of stores referred to in 309 above, the following checks will be
exercised:-
(a) Issue vouchers in respect of these will be scrutinized to the prescribed extent to see that the
authority in support of the issue has been quoted and the issues are in accordance with the
prescribed scales.
(b) The issue vouchers selected for detailed audit will be linked into Articles-in-Use Ledgers to
see that they are duly brought on charge.
(c) Internal Receipt Vouchers on which the Stores are returned to main stores will be scrutinized
to see that the condition on return, if other than serviceable, is due to wear and tear and that

174
 they are certified as such by the CTO Regularisation Recovery action will be called for in
cases where the unserviceability is due to unfair wear and tear.
(d) In respect of returns for the month selected for detailed audit, it will also be seen that the
same have been actioned in Articles-in-Use Ledgers and that single Stock Record Cards are
also adjusted.
(e) In cases where issue and receipt transactions are made through exchange voucher, all the
checks except enumerated at clauses (a) to (d) will be exercised except that linking in Articles-
in-Use Ledger will not be necessary as the balances in these ledgers are not affected thereby.
311. In respect of transaction affecting the stores of the nature referred to in para 309 (ii) above,
the following audit checks will be exercised.
(a) As these are normally replacement issues (i.e. for new spare fitted into the vehicle, the
corresponding repairable/unserviceable spares having been withdrawn and accounted for),
vouchers relating thereto will be generally scrutinized 100% to see whether the repairable/
unserviceable spares are, in fact, returned to store, the decategorisation is due to fair wear
and tear and has been certified by the CTO. Where the decategorisation is not due to fair
wear and tear as will be seen from the certificate the CTO regulation/recovery action will be
looked into.
(b) In cases where the spares are found to have been issued without corresponding withdrawals,
it will be ensured that the deficiencies are regularised on loss statement.
(c) The vouchers in respect of the issues pertaining to major repairs such as change of tyres,
engines, fuel tanks, etc., made during the month selected for detailed audit will be linked
with the log books of the vehicles to ensure that the items have in fact been incorporated in
the vehicles.
(d) Vouchers relating to issue of spare parts will be linked into the registers maintained by
MTR & I Section in accordance with the accounting procedure for 2nd line servicing.
NOTE:- Transaction of the above nature are however not audited under the simplified system of
accounting.

VOUCHERS IN RESPECT OF 'C' CLASS STORES

312. Vouchers in respect of issues of 'C' Class stores made during the month selected for detailed
audit, (i.e. the internal issue vouchers of UES which become RVs of Workshop) will be
linked into the Expense Register to ensure that the stores struck off charge from Stock Record
Cards have been duly brought on charge and accounted for properly at the workshop.

EXPENSE REGISTER OF 'C' CLASS STORES

313. In addition to castings (100%) it will be seen that:-

(i) 'C' Class stores issued from main stores have been duly brought on charge (the check
being exercised to the prescribed extent).

175
 (ii) Stores struck off charge from these books during the month selected for detailed audit
are correct as borne out from job cards quoted in support thereof

(iii) Stores held are not much in excess of the actual requirements as will be evident from
the receipt, consumption and balance.

(iv) In respect of 'C' Class Stores drawn for maintenance of workshop and not booked to
specific jobs but charged off on Certificate Issue Vouchers it will be seen that Certificate
Issue Vouchers are signed by the CTO and a review will be carried out to see that there
are no abnormal variations in the month to month consumption of the stores.

NOTE:-Under the simplified system of accounting adopted in Emergency/War, the register of Class
'C' stores is not required to be maintained.

AUDIT OF JOB CARDS FOR REPAIRS TO VEHICLES

314. It will be seen in audit that:-

(i) IAFF(T) 973 (old AF (Spl.) F 297-S) (Requisition for repair/Inspection of MT vehicles for
1st& 2nd line servicing) is raised by MT Section and forwarded to MTR and I Section
alongwith F(T) 963 (Log Book) and Form (T) 910 (Inspection Form) with defects column
completed. (Para 73 and 74, Chap/ 20, IAP 1501).
(ii) Separate Job Card (F 1083) is raised in respect of each vehicle of which repair is taken up
and the Job Card is given a serial No. from the Manuscript Register of Job Cards.
(iii) The Job Card is completed in all respects and signed by the Officer I/C MTR and I when the
Job is completed and the date of completion along with other particulars is also entered in
Manuscript Register of Job Cards.
(iv) Items of Stores shown as consumed in the Job Card will be linked in relevant register (i.e.
Register of spare parts. Register of Class C Stores and petrol and oil book and Form (T) 963
Log Book) and verified to see that the issues are reasonable.
(v) Manhours shown in the Job Cards should also be scrutinized to see that the manhours are
being properly utilized.

PERFORMANCE APPRAISAL OF MTR & I SECTION

315. In case of hold up of repairs, LAOs may ascertain the reasons for the hold up. The percentage
of vehicles lying off road/percentage of vehicles actually repaired will be highlighted for
remedial action, where necessary. Manhours utilized on smaller repairs will be compared
and cased where excessive manhours have been utilized will be examined to ascertain the
reasons therefor.

AUDIT OF REGISTER FOR REPAIR & MAINTENANCE OF BICYCLES

316. The above register will be examined to see that:-

(i) All the bicycles are brought before the Station Technical Officer (CTO) for general inspection
once in a quarter.
176
(ii) Replacement of worn out parts of bicylcles is made under orders of the CTO and entries
made in the register for repair of bicycles are signed by him.
(iii) That the expenditure on repair/maintenance of the bicycles maintained by the unit does not
exceed as under:
Rates per annum per bicycle
Ist Year Rs 105
2nd to 3rd Rs 210
4th to 6th Rs 305
Above 6th year Rs 305
Authority : CGDA letter No. AT/IV/4852/1 dated 12/08/2011
The check is to be carried out on the basis of the entries recorded in the Bicycle Maintenance
Register maintained in Accounts Section.

177
 CHAPTER XV

WORKSHOP ACCOUNTS
SECTION I-GENERAL

Topics Para
Introduction 317
Repair of class 'A' & 'B' Equipment & Rotables 318
Condition under which repairs can be effected 319
Repair tasks 320
Requisition for major jobs 321
Requisition for minor jobs 322
Audit of Q 401 323
Audit of job cards 324
Audit of manuscript expense book 325

SECTION II- BASE REPAIR DEPOTS

Topics Para
Introduction 326-327
Transfer of Aircraft 328
Other repairable items 329
Audit of master job register 330
Audit of workshop register 331
Audit of survey lists 332
Audit of manuscript register 333
Performance against tasks 334

SECTION I- GENERAL

INTRODUCTION

317. Jobs undertaken in the various types of workshops, establishment in the wings, Station Base
Repair Depots, fall under two categories, namely "Major" jobs and "Minor" jobs.
(a) Major jobs comprise manufacture of equipment other than for incorporation in Minor Jobs,
complete/partial and top overhaul of Aeroengines, complete and partial overhaul of Air
Frames, repairs to Air frames, ancillary equipment and similar major repairs connected
with MT vehicles, repayment and costed jobs.

178
 (b) "Minor" jobs comprise of modifications, other than those which may be regarded as major
jobs and all repair to equipment.

REPAIR OF CLASS 'A' AND 'B' EQUIPMENT AND ROTABLES

318. Repair arising of Air Force stores pertaining to Schedule 'A' items should be forwarded to
repair agencies. Items which are not to be repaired, are listed in Schedule 'B'. These Schedules
are notified by the Air HQrs, from time to time. In the case of other items which need repair
but are not included in these Schedules, orders of Air HQrs. for inclusion of such items
therein would be necessary.

CONDITIONS UNDER WHICH REPAIRS CAN BE EFFECTED

319. Repairs to equipment are normally to be carried out only when the estimated cost of repairs
does not exceed 50% of the price of new articles. The chief Technical officer will personally
determine the cost of repairs based on his past experience. In exceptional cases when items
are in short supply or urgent requirements are to be met, the limit of 50% may be exceeded
with the prior approval of Air Headquarters, but the cost of such repairs should not exceed
the priced vocab rate of the items.

REPAIR TASKS

320. Repair tasks are set separately for all types of Air craft components, signals equipment, major
repair/servicing/inspection of Air Frames/Aero engines and ancillary equipment. The tasks
are determined with reference to requirements as worked out by Tech. Directorates at Air
HQrs. with reference to the policy and plans for the ensuing 4-5 years in regard to the utilization
of the concerned Aircraft or signal equipment. By the 15th august of each year firm repair
tasks for the next financial year will be placed on Headquarters Maintenance command who
will indicate the same to the concerned repair depot. Items of ground equipment/Test
Equipment which appear in authorized scales will be repaired irrespective of their inclusion
in a formal repair task. Similarly, air craft rotables for meeting AOG demands will also be
segregated and speedily repaired.

REQVISITION FOR MAJOR JOBS

321. (a) Repair-Form (Q) 401 'Internal Repair Requisition' is prepared by the SEO in quadruplicate
and distributed as laid down in paras 32 and 48, chapter 24, IAP 1501. Job cards are raised by
the workshop officer and repairs carried out in accordance with the prescribed procedure. On
completion of the repair, station workshop officer will endorse copies one and two of F. (Q)
401 suitably and return the items to the equipment officer accompanied by the second copy
of F(Q) 401 which will be treated as a conversion voucher and the item brought on charge as
serviceable.

In the case of repairs within the unit's capacity, F(Q) 401 is not prepared. The items are sent
direct to the workshop by the Flt./Sec. after obtaining job card no. from the CTO. The items
will be recorded on loan cards by the Flt./Sn. Until received back after repairs.
179
 (b) Manufacture- Items which are not available to service sources to meet urgent requirement
are normally manufactured in the workshop. In the case of manufacture the same F(Q) 401
procedure as in case of repairs is followed that on completion of the manufacture the second
copy of F (Q) 401 will be treated as 'Receipt' voucher, and the manufactured item brought
on charge.

REQUISITION FOR MINOR JOBS

322. Where the job involves a change in condition under which the item is held on charge F (Q)
401 is raised as above. Where the job does not involve a change in the condition, the item
does not pass through main stock records, it will be sent directly by the flight or section to
workshop, on Form (Q) 401 prepared in duplicate after obtaining a job card duly authorized
by CTO. An item of equipment when it is in the workshop for repairs, will be held on a loan
card on which the No. of Job card will be annotated the loan card will be retained by the
Flight or section commander concerned. On return of the item duly repaired the loan will be
cleared.

AUDIT OF I.A.F.F. (Q) 401

Requisitions of manufacture and major repair jobs

323 [A] (a) Major jobs for repair and reconditioning of equipment.

It will be seen that:-

(i) all the F. Q 401 raised have been allotted a master job number in numerical sequence taken
from Master job register maintained by CTO/Station Workshop officer.
(ii) All the F. Q 401 have been approved by the C.T.O. and certified by him that the cost of the
repair task does not exceed 50% of the cost of new article. Wherever it exceeds 50% of the
vocabulary rates, prior approval of Air Headquarters will be looked for.
(iii) All the F.Q 401 have been completed to show the brief description of the job dates of
commencement and completion.
(iv) Both the copies of F.Q. 401 duly allotted [Link]. No are produced for audit and that they are
facsimile.
(v) F.Q 401 shows the correct condition of the Article after repairs and in the case of costed and
repayment repairs, these are endorsed suitably and show the internal voucher Nos. in respect
of any material used.
(vi) In the case of repairable articles made serviceable a certificate to the effect that the articles
classified as serviceable are fit for service is signed by OIC, workshop.
(vii) The certificate to the effect that the articles have been taken on charge/transferred to new
category /struck off charge as the case may be in the condition shown by station workshop
officer has been duly signed by Logistic Officer.
(viii) The articles are brought on charge on stock record cards in the condition shown by station
workshop officer.

180
 (b) Form Q 401 for manufacture of equipment:-
It will be seen that:-
(i) all the F.Q. 401 have been allotted a master Job No in numerical sequence taken from
manuscript register maintained by CTO/Station work shop officer.
(ii) All the F.Q. 401 bear the signature of C.T.O. in token of his approval of the Job required to
be done by the workshop.
(iii) All the F.Q. 401 have been completed to show the brief description of the job, dates of
commencement and completion.
(iv) That both copies of F (Q) 401 show the correct condition of the article after manufacture
and in the case of costed or repayment jobs, are endorsed suitably and also show the internal
voucher numbers in respect of any material etc., used.
(v) That the certificate in respect of serviceability of the manufactured item is signed by O IC.
Workshop.
(vi) That the certificate to the effect that the articles have been taken on charge has been duly
signed by the Logistic officer.
(vii) That items manufactured on Form (Q) 401 during the month selected for audit are B.O.C.
on SSRC.
(viii) Both the copies of F.Q 401 relating to manufacturing work completed are produced for
audit. These are allotted [Link] no and are identical.
(ix) Only articles supplied by the MES or by CPWD or articles supplementary to, in replacement
of , or for use in lieu of have not been manufactured within the station.
(x) Only articles as cannot be obtained from service sources have been manufactured. For this
purpose, inability certificate from ED concerned will be looked for in audit.
(xi) The spare parts for airframe and aeroengines have been manufactured within a unit on the
grounds of emergency for operational or other valid reasons in accordance with special
instructions from Air Headquarters.
(xii) The items having vocabulary equivalent are manufactured only when the same are not
available in unit stores and cannot be obtained from normal source of supply expeditiously.
(xiii) The items having no vocabulary equivalent i.e. not so far introduced in service, have been
manufactured only to meet the special requirement for the servicing/repair/overhaul of aircraft
and for the manufacture of urgently required equipment.
(a) that in respect of manufacture of items not so far introduced in service, the items manufactured
fall within the power of O.C. station. The extent of powers will be the same as in the case of
items already introduced into service.
(b) That immediately after the first manufacture a report is made to air headquarter and authority
obtained for further manufacture of the items and introduction in service.

(c) That none of the items held in stock in the AF can be substituted in lieu.

181
 [B] Audit of man uscript rre
manuscript e gister of F.Q 401
F.Q

It will be seen that:-

(i) the job numbers allotted during the currency of year run in numerical sequence.

(ii) A new series of job number commences from 1stApril each year.

(iii) It shown brief description, date of commencement and completion, manhours

spent etc. in respect of each job.

(iv) For all jobs completed F.Q. 401 duly allotted C. Vr or R. Vr. No are received in
Eqpt. Accounts Section.

(v) All jobs which are outstanding for more than six months or which have been
abandoned involving some expenditure in material or manhours are placed under
objection and that regularization action is taken in respect of infructuous
expenditure.

NOTE:- Objections on outstanding job cards raised every half yearly will be consolidated in the
audit report for the last half year of each financial year.

Job cards

324. It will be seen that:-

(i) The job cards relating to the jobs completed are produced for audit.
(ii) All the job cards shown opened in manuscript register are produced for audit scrutiny.
(iii) The date of commencement as well as completion of all jobs undertaken are mentioned
therein.
(iv) Where on further dissembly, it is noticed that some repairs are to be carried out by some
other workshop at the same station, subsidiary job cards are raised indicating the relevant
workshop and the main Job card has suitably been annotated.
(v) The continuation job cards are given same Job No. and suitably numbered, the last
continuation cards being marked as final.
(vi) The total manhours spent on a job reflected on Master Job card has correctly calculated and
supported by the detail shown on each continuation and subsidiary Job Card.
(vii) All general principals relating to their completion have been observed.
(viii) On the reverse of each job card detail of all labour and material including class 'C' stores has
been given as per Appendix 'C' to AFO 128/69 as amended from time to time in the case of
repairs carried out in flying units. From the details available, it should be seen from a higher
audit point of view whether the jobs have been executed economically and do not involve
disproportionate expenditure.

182
Manuscript Expense Book
Manuscript

325. This is maintained for recording consumption of attractive 'C' class store drawn for the repair
and manufacture of articles of equipment in accordance with the provisions contained in
para 56 and 56 'A' of chapter 24 IAP 1501. It will be seen that:-
(i) All attractive items mentioned in the list attached at the end of chapter 24, IAP 1501 are
duly accounted for therein.
(ii) That consumption of class 'C' V and A item is recorded on job card.
(iii) There is no unnecessary accumulation of such stores in the workshop.
(iv) That IAFFs (Q) 447 of detailed month raised for the drawal of class 'C' attractive stores
have been posted in the expense book.
(v) Every consumption of class 'C' stores is supported by the Job Card.
(vi) Issues made during the month selected for detailed audit have correctly been accounted for.
(vii) Consumption of valuable and attractive 'C' class stores on minor repair, where F(Q) 401 are
not raised, are supported by Monthly Job card opened for the purpose.
(viii) Completed expense books are periodically sent to Accountant officer for scrutiny, custody
and presentation for audit.

WORKSHOP ACCOUNTS: SECTION -II : BASE REPAIR DEPOTS

326. This section contains supplementary instructions which are peculiar to B.R.D.

327. Base repair Depots are responsible for third and fourth line servicing of Air craft, Aero engine,
other major Air Force Equipment and MT vehicles. Equipment depots have been established
along side with the specific responsibility of providing requisite spares and other major support
equipment to the Repair Shops. The provisioning is done through the agency of 'overhaul
spares depots' which are established in the Annexure to the concerned workshop and the
Base Repair Depot. The procedure that is adopted is as under-

TRANSFER OF AIRCRAFT

328. Aircraft are to be vouched and dispatched by the holding unit direct to repair depot with all
necessary documents. Deficient items not recorded on the consignor's issue voucher should
be processed through discrepancies report in the normal manner. After repair, these are to be
handed over by the repair depots directly to the representatives of consignee unit to whom
the Aircraft are allotted.

OTHER REPAIRABLE ITEMS

329. All Air Force Equipment including Aeroengines/Assemblies and other rotables which are to
be repaired/over hauled by the Repair Depots are to be vouched and dispatched by the units
to the equipment depot formed along side the Repair Depot. Each equipment or assembly is

183
 to be accompanied by the relevant check-lists, log books, and other required documents. On
receipt it is subjected to an external visual inspection and deficiencies, if any, are to be listed
in duplicate and attested by the inspecting officer/SNCO. Discrepancies reports are to be
raised in the normal manner and receipt vouchers are to be cleared long before actual
conditioning of stores. In case it is not possible, to categorize the items at the time of receipt,
the items may be brought on charge as unclassified and is to be dealt with in accordance with
the provisions contained in para 45 to 52 chapter 38 part II IAP 1501. Repairable equipment
is issued by the E.D. in accordance with the repair program to the concerned workshop of the
BRD on F. (Q) 401 raised as laid down in Chapter 24 IAP 1501. Before any item is taken up
for repair, the job is required to be approved by the CPO/CTO who will certify that the cost
of repair is not likely to exceed 50% of the cost of the new article; if otherwise, approval of
Air HQrs is necessary for carrying out the repairs. After approval the repair requisition is
entered in a 'Master job register' in the CPO's office and a job card is raised. The repair
requisition is then passed on to the concerned workshop along with the job card. On receipt
at the repair depot the item is subjected to a thorough strip down examination and deficiencies
of components are listed in a statement called 'Survey List'. When the deficiencies or
discrepancies come to light, equipment needing replacement is added to the Survey List.
NOTE:- Cat 'DI' equipment received from A.F. Units are brought on charge on quarantine tally cards
through separate R.V. series prefixed by "QR" for each financial year by RES of BRDs. It will be
ensured in audit that provisions of para 93 to 100, as amended vide AL 204/82 of Chapter 22 of IAP
1501, are being complied with by the BRDs and there is no accumulation of equipment in QTC for a
long period, Non receipt of loss statements as required vide para 99 of Chapter 22 of IAP 1501 from
consignor units will be pursued through objection statement.

AUDIT OF MASTER JOB REGISTER

330. It will be seen during audit that:-

(i) CPOs master job register is completed in all respects and all jobs Nos. are allotted serially.
(ii) All jobs which are outstanding for more than six months or which have been abandoned
involving some expenditure in material or manhours are placed under objection, and that
regularisation action is taken in respect of infructuous expenditure.
NOTE:-Objections on outstanding job cards raised every Half year will be consolidated in the audit
report for the last Half year of each financial year.
(iii) Jobs undertaken for outside agencies for which financial adjustment is required to be made
are recorded separately and the relevant form (Q) 401 indicate the detail/cost of manhours
and material.

WORKSHOP REGISTERS ETC.

331. Register of Jobs: It will be seen that:-
(i) All jobs allotted by the CPOs are entered in the register of jobs and workshops job Nos. are
allotted thereto.
(ii) It is complete in all respects.
184
Job Cards:
In addition to those enumerated in the General Section it would be seen that:-
(i) Where necessary, sub job cards are raised and recorded in the main job card.
(ii) Survey lists have been prepared showing Class 'A' and Class 'B' items required for carrying
out the repairs, whether, for replacement of unserviceable ones or to make up for deficiencies.
(iii) In the case of repairables received from the units it should be seen whether they are
accompanied with relevant check list (i.e. ECL, SACL, Log Book etc.) and deficiencies, if
any, are exhibited in the consignors issue vouchers. It should also be seen that for all additional
discrepancies noticed during visual inspection, DRS are raised and progressed in the usual
manner.
(iv) The man-hours fixed by Government for major overhaul of certain types of Aircraft have
not been exceeded.

SURVEY LISTS AND SURVEY LIST REGISTER

332. Survey Lists are prepared detailing the spares excluding 'C' class stores required for the repair/
overhaul of the assembly. These lists form the basis of drawal of spare against particular
repair jobs. It should, therefore, be seen in audit that:-
(i) Survey lists are approved by the AIS attached to the workshop and are recorded workshop
wise by the OSD.
(ii) Survey lists are annotated with the Engine/Equipment Serial No. and repair task No. In the
case of internal arisings, the Survey Lists are to be boldly annotated "Internal Arisings'.
(iii) They are duly annotated with the DR or IAFF (Q) 406 by which the deficient components
had been adjusted, wherever necessary.
(iv) Issues against un-serviceable item (where such items are returned simultaneously by the
workshop) are made on D.446 internal exchange voucher. These vouchers are to be annotated
on the Survey Lists.
(v) Where Cat 'E' items are not returned immediately issues are made on Q447 (internal issues
voucher). And the IVs are noted on the survey list. In such cases the No. of the internal RV
Q 448 on which the Cat 'E' items are received subsequently is crossed referred with the
internal IV and the RV No. is also annotated in the survey list.
(vi) Where Survey List Cat 'E' item are returned before issues of serviceable items, the return is
made on Q 448. Subsequent issue against these un-serviceables is made on Q 447. The Q
447 and Q 448 are cross referred with each other and noted in the Survey List.
(vii) Survey Lists have been entered serially in the Survey Lists Register.
(viii) It will also be seen that there is no undue delay in issues of spares resulting in delay in
completion of the jobs.

185
MANUSCRIPT REGISTER

333. The Officer-in-Charge workshop also maintains a Manuscript Register, wherein all items
demanded to complete the equipment under repair will be recorded. This register will be
comprehensive and will bear reference to appropriate IAFF (Q) 447 and job card serial No. It
will be seen in audit that:-
(i) The register is complete in all respects.
(ii) The register is reviewed periodically by the OIC., workshop and that a Certificate to the
effect that transactions are justified is endorsed therein by the OIC., workshop duly
countersigned by the Chief Tech. Officer.
(iii) That there is no discrepancy between the entries in this register and the survey lists concerned.

PERFORMANCE AGAINST TASKS

334. In the audit cycle for the last half year of a financial year a comparison of the actual performance
against the tasks allotted for the year is to be made and significant short falls brought to the
notice of unit and higher authorities. If any significant shortfall are noticed they are to be
proposed for inclusion in the Annual Audit Certificate.

186
 CHAPTER XVI

CHECK OF RAILWAY WARRANTS, CREDIT NOTES

AIR PASSAGE WARRANTS AND CONCESSION VOUCHERS
Topics Para
General 335
Check of Register of Books and Forms 336-337
Local Audit Check of Books of various Forms in General 338
Check of Railway Warrants 339-340
Check of Military Credit Notes 341-343
Loss of Railway Forms 344-346
Check of Air Passage Warrants 347-348
Concession Vouchers 349-350
Disposal of Forms on disbandments of units 351
Destruction of obsolete Forms 352

GENERAL

335. The documents mentioned below will be checked at the time of each Local Audit Cycle to
the extent and in the manner indicated in the succeeding paragraphs.

CHECK OF REGISTER OF BOOKS AND FORMS

336. The register in IAFZ 2012 is maintained to record the receipt and disposal of books and
forms. It will be checked to see that:-
(a) all books as intimated by OC AFF & SD, Barrackpore (as amended vide AFO 32/88 as
amended from time to time) as issued to the unit or otherwise received by transfer have
been taken on charge in the register. Whenever books of Railway Warrants, Military Credit
Notes and other Railway Forms are transferred to another unit/formation, the LAO of the
consignor unit/formation will send an intimation (by a Memorandum) of the transfer of
books of Railway Warrants, Credit notes and other Railway concession forms to the LAO
of the consignee unit/ formation and obtain his acknowledgement. The LAO of the consignee
unit/formation will link the transfer of books of forms in the Register of Books and Forms
(IAFZ-2012 ) of the consignee unit/Formation.
(b) The Books issued for use to other sections of the unit have been duly acknowledged by the
receiving officer over his dated signature.
(c) The date of return of completed Books has been duly recorded under the dated initials of the
Adjutant.
(d) Handing over and taking over certificates have been furnished by all officers concerned on
change of responsibility.

187
337. After the last batch of counter-foils of a completed book has been reviewed, a note to that
effect will be made in the Register (IAFZ 2012) under the dated initials of the LAO. A
completed book will not normally be reviewed again at subsequent visits.

LOCAL AUDIT CHECKS OF BOOKS OF VARIOUS FORMS IN GENERAL

338. The books of various forms will be checked to see that :-

(a) a certificate to the correctness of the contents of the books is recorded by the Adjutant on
the cover of each book; defective forms which cannot be brought in to use are cancelled and
retained in the pad under the signature of OC of the receiving units' any discrepancies
noticed are reported immediately to the OC A.F.F. & S.D. Barrackpore and to the CDA
dealing with the forms in question.
(b) The books have been duly brought on charge in the register of books and forms (IAFZ
2012) and held in safe custody under lock and key.
NOTE:- LAO should verify by a physical check of the books of forms that the entries in IAFZ 2012
relating to books in use and those in stock accord with facts.
(c) periodical/ Independent /handing over and taking over checks vide paras 27,28 of AFO 32/
88 as amended from time to time have been exercised at the prescribed intervals namely
monthly/quarterly/half yearly when custody of forms in transferred, and the requisite
certificate are endorsed on IAFZ 2012 where necessary.
(d) The Books of used warrants counterfoils are certified by the Adjutant on the back of the last
counterfoil used that no warrants or counterfoils of used warrants are missing from the
book; the forms have been issued under proper authority quoting the relevant personnel
occurrence Reports and in accordance with regulations and that the counterfoils are complete
in all respect and signed by the issuing officer.
(e) All the printed columns in the form have been duly completed and counterfoils are signed
with the unit stamps;
(f) There are no erasures, unattested alterations, etc., in the counterfoils'
(g) The counterfoils agree in all details with the original forms received from the PCA(Fys) for
pairing and any discrepancies noticed duly reported to him'
(h) Railway Warrants, Military credit Notes, etc., the cost of which is debitable to other
departments are duly endorsed with the name of the department to which the cost is debitable.
(i) Railway warrants and Credit Notes are issued and signed by a Commissioned Officer;
NOTE 1- Master Warrant Officers or Warrant Officers may sign and issue Military Credit notes and
Railway Warrants when they hold command of units or where there is only one Commissioned officer
at the unit and that officer is absent from the Station at which the unit is located.
NOTE 2- MWOs/WOs and JWOs of all trades when posted to fill Asst [Link].O./Adjutant/OI/C Transit
Section post or when specifically appointed as by name in writing by the officer commanding may hold
in custody, sign and issue Military Credit Notes, Railway Warrants, Form "B" and conversion vouchers.
Authorisation of MWOs/WOs/JWOs to sign Railway Forms will be notified in SROs/Unit Orders.

188
 (j) Losses of any forms have been promptly reported to the PCA(Fys) Calcutta /PCDA(AF)
Dehradun

CHECK OF RAILWAY WARRANTS

339. In addition to the checks laid down in para 336 book of Railway Warrants (IAFT 1707 and
IAFT 1707-A) will be reviewed on general lines to see that :-
(a) The forms are issued to entitled personnel on authorized occasions and numbers and dates
of Personnel Occurrence Reports authorizing the moves are quoted on the counterfoils of
Warrants;
(b) The individuals traveling are entitled to the class of accommodation shown on the Railway
warrants;
(c) In the case of cancelled counterfoils the relevant warrants (foils) have been effectively
cancelled by means of large 'CANCELLED' stamp or by inscribing the word
'CANCELLED' in ink diagonally across the face of the form and the foils are pasted to the
counterfoils
(d) No blank form have been signed by the issuing officer or impressed with unit stamps'
(e) Warrants used when finally moving, for the individual's authorized baggage under Rule
535, Travel Regulations have been linked with the number and date of Warrant(s) already
used for the conveyance of part of baggage;
(f) Baggage allowed to be carried free is within authorized limits;
(g) Any case in which extra expenditure is caused to the State on account of conveyance of
excess baggage has been dealt with under Rule 4, Travel Regulations;
(h) Unaccompanied authorized baggage of individuals is carried on Railway Warrants and not
on Credit Notes.
340. Five percent of the warrants issued during the period under audit will be selected for detailed
check. The check will consists in seeing that "-
(a) the numbers and date of Personnel Occurrence Reports quoted and details regarding names,
particulars, purpose of journey, etc shown on the counter-foils are authentic;
(b) no forms has been used for moves in connection with training camps and manoeuvres;
(c) the move has been authorized by Competent authority as laid down in Travel Regulation.
NOTE :- the counter-foils thus checked will be initialed and dated by the official carrying out the
check.

CHECK OF MILITARY CREDIT NOTES

341. Military credit notes will be reviewed on general lines to see that:-
(a) the numbers and dates of issue vouchers or other communications forwarding stores are
quoted on the counter-foils so as to ensure that only bona-fide Government stores were
conveyed thereof;

189
 (b) no blank forms have been signed by the issuing officers;
(c) when stores are dispatched by means other than goods train the sanction of the competent
financial authority for doing so is quoted on the counter-foils.
(d) The sanction of the competent financial authority has been obtained in respect of credit
notes issued to meet wharfage or demurrage charges.
342. Five percent of the credit notes issued during the period under audit will be selected (with
due regard to amount involved) for checking in detail with the corresponding issue vouchers
to see that :-
(a) the stores stated to have been dispatched were actually issued and were Government property
at the time of dispatch.
(b) Credit notes are not used for conveyance of stores issued on loan to Civil Departments,
Private Firms etc.
(c) Credit notes were not used for conveyance of stores in connection with training camps and
manoeuvres.
NOTE:- the counter-foils thus checked will be initialed and dated by the official carrying out the check.
The official reviewing the forms will also endorse 'Reviewed' under his dated signature and designation
on the reverse of the counter-foils of the last Railway Warrant/Credit Note issued upto the date of
review.
343. In addition to the checks prescribed in the foregoing paras small percentage of 'foils' of Railway
Warrants and credit notes will be 'paired' with their 'Counter-foils' to see that the entries in
the Warrants or credit notes are identical with those in the counter-foils. Any discrepancies
noticed will be intimated to the PCA (Fys)/ PCDA(AF) (in the case of AF Officers moving
singly) if they cannot be settled locally. For this purpose, the PCA (Fys) or the PCDA/
CDA(AF), as the case may be, will forward monthly to LAOs 25 percent Railway Warrants
and credit notes of Rs. 100 and over in value and not less than one percent of the total paid
Railway Warrants and Credit notes for smaller amounts selected at random with covering
lists in duplicate according to Station of issue of documents. The documents will be recorded
by the Local Audit Staff after they have been paired with the counter-foils.

LOSS OF RAILWAY FORMS

344. The manner in which losses of Railway Forms are to be dealt with has been given in detail in
para. 19 to 21 AFO 32/88as amended from time to time. It will be ensured that Railway
Forms, which are fraudulently used and the cost of which is known are regularized by the
Competent Financial Authority under Rules 165-167 and Appendix II Part III Air Force
Schedule VII of FR Part I 1963 Edition. In the case of blank forms (other than IAFT-1752)
however, since the loss on account of probable misuse cannot be ascertained, It will be seen
that they are regularized under orders of the Government of India. In case of loss of form
IAFT-1752, the cost of each form is assessed by basing it on the longest distance that can
possibly by traveled from one end of the country to the farthest end by the highest class of
accommodation. The loss thus assessed is submitted to the CFA for regularization.

190
345. The local Audit checks in regard to railway warrants etc. should be strictly confined to the
checks provided for in this chapter. The irregularities coming to notice as a result of these
checks will be embodied in the Objection Statements and extracts of such items will
simultaneously be sent to Auditing Controllers viz PCDA (AF)/PCA (Fys) and his
acknowledgment obtained. Cases of prima-facia irregular issue of warrants and credit notes
where detected by LAOs in the course of audit will not be placed under objection but scheduled
to PCA (Fys) or PCDA(AF) (in the case of warrants issued to AF officers moving singly)
with full particulars (e.g. nature of irregularity, number and date of warrants or credit notes,
names of stations between which used, the name of issuing unit etc.). As the final responsibility
for the detailed audit of Railway Warrants and Credit Notes and settlement of all objections
in respect thereof rests with PCA (Fys) /PCDA(AF) (in case of warrants issued to officers
moving singly) objections regarding entitlement on warrants and credit notes, etc may be
treated as closed by LAOs after such cases have been reported to those officers and
acknowledgment obtained.

346. It will be ensured that 'No objection Certificate' is invariably obtained by AF Units from the
respective LAOs before destruction of complete counter-foils and obsolete forms of Railways
Warrants, etc.

CHECK OF AIR PASSAGE WARRANTS

347. Air Passage Warrants used by A.F Units for dispatch of A.O.G and other High priority
Equipment and conveyance of IAF Officers, etc by Indian Airlines corporation/Air Indian
within the country/aboard. To destination abroad where IAC/AI do not operate, the stores
are dispatched through foreign airlines. All overseas bookings are made by Movement control
unit (AF) located at Palam and Santacruz and the Air Force consignor units dispatch stores to
these units for arranging dispatch of freight by air to destination abroad. Air Passage Warrants
to cover freight charges thereof are issued by Movement Control Units (AF) Located at Palam
and Santacruz only. The various checks prescribed for the audit of counterfoils of Military
Credit Notes and Railway Warrants in the preceding paragraphs will be exercised mutatis
mutandis in audit of counter-foils of Air Passage Warrants.

348. Audit section of PCDA(AF) will Schedule 10 Percent of the Air Passage Warrants received
in support of the bills to the LAOs concerned. After pairing the original Air Passage Warrants
with the duplicate Warrants retained by the Units, these will be returned by the LAOs (AF) to
the PCDA(AF) for final record with the paid bills within five months of their receipt in the
LAOs office. 10 percent of the paid bills in respect of freight for which cash payments have
been made to the Civil Air lines and for which Air Passage Warrants were not issued will also
be scheduled by the Audit Section concerned to the LAOs who will verify, etc., like Air
Passage Warrants and returned them to the PCDA(AF) within the period specified above.

191
CONCESSION VOUCHERS

349. Books of Form 'D' (IAFT 1709-A) and 'E' (IAFT 1720-A) etc see that :-
(a) the books are kept in safe custody under lock and key.
(b) A register in (IAFZ 2012 ) recording the receipt and disposal of the books is maintained
(c) All cancelled forms are effectively, cancelled and pasted to the counter-foils.
(d) No blank forms have been signed by the issuing officer.
(e) In the case of officers ( as distinct from their families) and airmen, the forms are issued
where they have been granted leave. The check should be made from the counter-foils of
Personnel Occurrence Reports and not vice-versa.
(f) The particulars of account officer responsible for accepting the debit are invariably given
on the counterfoils of concession voucher.
NOTE-1:- In the case of these Forms LAOs will be furnished by the PCDA(AF)/PCA (Fys) as the case
may be, the number of the books supplied as communicated to them from time to time by the O.C.
A.F.F. & S.D. Barrackpore. It will be seen that all the books supplied have been brought on charge.
NOTE 2:- LAOs are not required to audit the counter foils of the forms issued.
350. All the concession vouchers that are received from the PCDA(AF)/PCA (Fys) will be 'paired'
100 percent with the counter-foils by the LAOs concerned to see that the entries in the
concession vouchers are identical with those in the counter-foils. Any discrepancies noticed
with be intimated by the LAOs to the PCDA(AF)/PCA (Fys) as the case may be, if they
cannot be settled locally. For this purpose, 15% vouchers exceeding Rs. 15/- but not in
excess of Rs. 50/- but not in excess of Rs. 100/- in value and all vouchers exceeding Rs 100/
- upward in value will be forwarded by the PCDA (AF) /PCA (Fys) to the LAOs concerned
after acceptance of debits. The documents will be recorded by the Local Audit Staff after
they have been paired with the counter-foils.

DISPOSAL OF FORMS ON DISBANDMENT OF UNITS

351. On disbandment of units, it will be seen that units have :-

(a) returned partly used books and those books of counter-foils of less than 3 ½ years to the
Command HQrs concerned;
(b) destroyed Books of time expired counter-foils by burning after obtaining a certificate from
the Local Audit Officer and that the details of the books destroyed are entered in IAFZ
2012.
(c) Returned complete books of unused forms to O.C. A.F.F. & S.D. Barrackpore or Stationery
Deport under intimation to the CDA concerned, as the case may be, for re-issue to other
units. It will also be ensured that the entry regarding return of Forms has been made in
register IAFZ 2012.

192
DESTRUCTION OF OBSOLETE FORMS

352. In the case of obsolete forms it will be seen that :-

(a) unused complete books are destroyed by burning after obtaining a certificate from the CO
that no form from these books are missing.
(b) Counter-foils of completely used and Partly used books are retained for 3 ½ years from the
date of issue of the last form and destroyed thereafter after obtaining a certificate from LAO
to the effect that no objection is pending in respect of any of the used form. It will be
ensured that the details of books destroyed are entered on the bulk record register.

193
 CHAPTER XVII

INSTRUCTION FOR THE CHECK OF AMENITIES,

COMFORTS, ENTERTAINMENT SERVICES FUNDS ACCOUNTS
Topics Para
General 353
Accounting of A.C.E.S. Stores. 354 - 355
Check of Property Book 356
Disposal of ACES Stores on disbandment of units 357

GENERAL

353. To finance the provision of Sports gear, indoor games, literature radios, gramophones,
gramophone records, musical instruments and anything that helps in the well being and morale
of airmen, cash grants are made to I.A.F. units annually at the rate laid down in AFIs issued
from time to time. The units and formation are required to keep proper cash accounts of the
expenditure incurred from these grants duly supported by necessary vouchers and a Property
Book and manuscript registers in which the welfare stores and books etc., purchased out of
these grants are recorded. While the cash accounts are rendered to the P.C.D.A. (A.F.) for
audit, the stores accounts are subjected to audit by the LAOs.

ACCOUNTING OF A.C.E.S. STORES

354. It will be ensured in audit that all amenity items purchased out of the A.C.E.S grant have
been accounted for in the manuscript property book irrespective of the normal expectation of
life and Certificate Receipt Vouchers and Certificate Issue Vouchers raised to support receipts
and charge off of stores respectively.

355. Bills in respect of the stores purchased out of the [Link]. Grant received with the Cash
Account of the units will be scheduled by Audit Section concerned of the P.C.D.A.(A.F.)/
CDA(AF) to the L.A.O.(A.F.) for linking of credit of stores in the Property Book to the
prescribed extent and return. Similarly, those for the purchase of reading material are scheduled
for linking of credits in the respective manuscript registers maintained to account for the
books etc.

CHECK OF PROPERTY BOOK

356. The Property Book will be checked to see that :-

(a) it has been kept in the correct manuscript form prescribed for the purpose.
(b) all strike offs are supported by Certificate Issue Vouchers and certified due to normal fair,
wear and tear.

194
 (c) All losses (other than the deficiencies revealed at stock taking for which see clause (f)
below) are written off of F.406 after due investigation and any recoveries for losses due to
neglect etc., of any individual (s) are affected from the and credited to Government.
(d) Sale proceeds of stores (including sale proceed of newspapers, magazines, etc.,) are credited
to Public Fund Account and not to amenity fund.
NOTE:- For this purpose, the audit section concerned in the Main Office will schedule the cash vouchers
on which the sale proceeds of newspapers, magazines etc., are credited to Government to the LAO
concerned for verification and return thereof to Main Office.
(e) issues to flights and sections are accounted for on loan cads. Form IAFF (Q) 444 and the
cards are signed by the persons receiving the stores.
(f) Physical stock-taking has been carried out on the 31st March and 30th September, each year
and a certificate to that effect is recorded by the stock-taking officer. Also that the surplus
revealed are brought on charge in the Property Book and the remarks column is annotated
to the effect. Similarly, that necessary write off entry in respect of the deficiencies revealed
at stock-taking, which are authorised by the CO to be written off, has been made in to the
loss or write off column of the Property Book and the remarks column signed by the CO as
authority for the write off.
NOTE:- No loss statements are raised in respect of deficiencies revealed at stock taking.
(g) after the stock-taking on 31 March is complete, the net balances have been correctly carried
forward to the next financial year and the balances carried forward have been initialed by
the Officer carrying out the stock-taking.
(h) Handing and taking over certificate on change of responsibility have been signed by the
officers concerned and countersigned by the C.O.

DISPOSAL OF A.C .E.S

.E.S.. ST
A.C.E.S ORES ON DISB
STORES ANDMENT OF UNITS
DISBANDMENT

357. In the case of Air Force units/Formations under order of disbandment, it will be ensured that
(i) the stores are disposed of by Public auction arranged by the C.O. and the sale proceeds
credited to Government and the treasury receipt sent to the PCDA (AF)/CDA(AF) (ii) the
items which could not be sold by auction have been dispatched to the nearest A.F. Station on
M.C. Notes. To ensure that the items so forwarded have been brought on charge by the
receiving unit in the property Book a list of the items will be made out and sent to the LAO
concerned for verification of credit stores.

195
 CHAPTER XVIII

MISCELLANEOUS DOCUMENTS AND REGISTERS TO BE

CHECKED IN LOCAL AUDIT
Topics Para
Service books of civilians check of 358
General 359
Service Books of Individual transferred from one service formation to another 360
Record of Service Books Test Checked 361
Verification of posting of Part II order in Service Books. 362-363
Verification of qualifying service after 25 years of service or five years before
retirement for the purpose of sanction of Pension in r/o Defence civilians of
Air Force 363
Stream lining of procedure for sanction of Pension in r/o Defence Civilians
of Air Force: Data Sheet System 363-A
Attendance Register, Time Check Register, Absentee Reports. 364
Liveries to Class IV employees 365
Dead Stock Registers 366
Internal Demands and Issues & Accounting of Dead Stock Articles 367
Distribution Register 368
Transfer of items on Move of Ledger Units 369
Postage Account 370
Register of Money Orders 371
Telephone, Trunk Call Register 372
Repair and Maintenance of Office Bicycle 373
Register of approved contractors : Local Service. 374
Audit of Vouchers and Documents in Respect of items of uniform and
clothing issued to Flight Cadets against their outfit Allowances placed
at the disposal of the O.C., Training Establishment. 375
Cinema Register. 376
Messing Charges. 377
Property Book - Minor Training Grant 378
Overtime Register 379
Gift Stores - Receipt and Accounting 380

196
 EDP / AFNET / IMMOLS Section 381
Wireless Maintenance Grant Register 382
Security Deposit Register of Civilian Storekeepers 383
Uniform Record Card of Fire Fighting personnels. 384
Register of uniform Record card of fire fighting personnel 385
Audit of Defence Lands held by Air Force Authorities. 385-A
Register of recording the occupancy of Guest Room attached to the
Officers Mess. 385-B
Audit of Register of Occupancy of Guest Room . 385-C
Commercial Utilisation of Defence Land 385-D

SERVICE BOOKS OF CIVILIANS: CHECKS OF:

358. The record of Service in respect of all Civilians paid from Defence Service Estimate who are
permanent or temporary but are likely to employed for a period of more than one year is
maintained in Standard Service Book Form ATC-4. 25% of the current service books of the
Civilian Establishment (Industrial and Non-Industrial) serving with under and formations
will normally be selected for test check within each period approximately 12 months. The
selection of 25% of service books should be planned in such a way that all of them are
audited once in a cycle of 4 years. The service books of all individuals due for retirement
will be given priority for test check within the percentage prescribed. For this purpose, at
each visit to a unit, Local Audit Staff will obtain list of individuals attaining the age of
superannuation within 12 to 18 months period by units / formation and ensure that all the pay
entries in the Service books have been attested.

GENERAL
359 (i) The test check of service books will consist in seeing that: -
(a) the period allowed to count for increment is correct particularly where broken period
are involved.
(b) the leave credited to the leave account during the preceding four years (or since the
last verification of leave, if such a verification has already been made previously by
the Local Audit or the LAO was according to the extant orders and leave taken was
correctly granted.
(c) in the case of individuals who have rendered service in other Departments paid from
estimates other than those of the Defence Services, an entry is made regarding the
leave earned by them under those Departments and that reference is quoted to the
communication under which the information was furnished by the head of the office
to the C.D.A. (A.F.).

197
 (d) the entries in pay columns in the service books selected for the detailed audit will be
verified in local audit with reference to the office copy of the pay bill in the case of
class IV Non-Industrial Civilian (except those of Air Hqrs) and monthly ledger
summaries in respect of those whose accounts are maintained on IRLAs system for
the month selected for detailed audit, to see that they agree. An Audit enfacement
showing month's pay bill from which entries have been verified will be recorded in
the service books and initialed by the "Testing Official concerned".
(e) the books are maintained in the prescribed form.
(f) the column in page 1 are completed.
(g) the individuals are declared medically fit for entry into Government service by
competent Medical authority.
(h) the leave record is maintained in Form ATC-2A and that all leave entries in the service
book are entered in the leave records also.
(i) in the case of individuals holding officiating appointments, the necessary certificate
that they would have continued to officiate but for their proceeding on leave is endorsed
in the service book.
(j) the leave travel concession are correctly granted.
359 (ii):- While auditing the manuscript Register of unutilized earned leave in respect of retiring
individuals, it will be seen that:-
(a) The register is being maintained properly by the Air Force Units/formations, It is
indexed and suitable pages have been allotted to each individual.
(b) At the time of sending the service book to pension sanctioning authority, the audited
balance of earned leave, HPL to the credit of the concerned individual has been
transcribed correctly by the units/formations in the register.
(c) Subsequent earning and availing of the Earned Leave HPL/EOL etc., during the
intervening period have been entered in the register citing reference to the authority
for grant of such leave etc.,
The above entries in the register will audited by the LAO (AF).
NOTE:- It may happen that after service book is sent to pension sanctioning authority an employee
may avail of EOL otherwise on medical ground which is non qualifying for pension. When such cases
are disclosed on scrutiny of register by the LAO to the pension sanctioning Authority. The manuscript
register is to be verified by the LAO at the time of countersigning the certificate for encashment of
leave.
359 (iii) A certificate (to be rendered alongwith the claim for encashment of earned leave) as per
specimen given below regarding entitlement of earned leave/Half Pay Leave/any other kind
of leave standing to the credit of the concerned individual furnished by the unit authorities
will be countersigned by the LAO (AF).

198
 CER TIFICA
CERTIFICA TE
TIFICATE

It is certified that the entries in the leave account of …….. have been verified with the service
book and the manuscript register maintained for the purpose and the balance of earned leave / half
pay leave / any other kind of leave to the credit of the individual in the date of retirement viz……….
is……… days.

Countersigned Comdt./Leave Sanction Authority

LAO (AF)

SERVICE BOOKS OF INDIVIDUALS TRANSFERRED FROM ONE SERVICE

FORMATION TO ANOTHER

360. The service books of Civilians of the above category are to be audited up to date before their
transmission to the new unit/formation.

RECORD OF SERVICE BOOKS TEST CHECKED

361. In order to ensure covering all the ground systematically a complete record will be kept of all
service boos "test checked" each year. The service books actually checked should be endorsed
with a Note to this effect dated and initialed by the testing official(s) concerned.

Note - The Service Books to be audited will be selected with reference to the Master Register of
Civilians required to be maintained by the Civil Admin. Section. For ensuring that Service Books
are maintained for all, this register will be checked at least once a year with reference to the unit
copy of the pay bill-cum-acquittance roll (in the case of Group 'D' civilians) and the ledger summary
by AF CAO (in the case of Group 'C' civilians).

VERIFICATION OF POSTING OF PART II ORDER IN SERVICE BOOKS

362. During any one 'audit' in each year the posting into all service books affected of all office
orders issued during one month should be verified.

Verification of qualifying service after 25 years of service or five years before retirement for
the purpose of sanction of Pension in r/o Defence civilians of Air Force

363. Head of offices will be submit Defence Civilians Air Force Service Books duly completed to
their accredited LAOs/ ALAOs (AF) who will verify the qualifying service with reference to
the following audit drill and will make an endorsement to this effect in the service books and
will sign the certificate with the designation as 'Accounts Officers' instead of LAO (AF).

199
 DRILL

VERIFICATION OF QUALIFIYING SERVICE AFTER 25 YEWARS OR 5 YEARS

BEFORE RETIREMENT
(i) On receipt of the history of service / service book, alongwith the proforma of verification
of service (Appendix XII, with Part I thereof dully completed by the Head of Office,
particulars thereof will be entered in a register as per proforma given in Appendix XI.
Action will be taken to determine the qualifying service for pension of the individual upto
the date of completion 25 years of service or till 5 years before retirement, by the application
of the relevant rules. The audit report shall be recorded in this respect by completing Part II
of the proforma (Appx - XII). After adjudicating the quantum of qualifying service, the
following rubber stamp shall be enfaced in the current service book.
"Service Verified from .............……………….to .................………………. And audit
report rendered vide No ……………."
(ii) The service documents and proforma of verification of service shall be returned to the Head
of Office and the no. and date of memo under which audit report has been rendered is
entered in the register in the column provided there for, and acknowledgement from HO is
watched and noted in the column provided in the register.
2. Specimen format of (1) the register of qualifying service after 25 years of service / 5 years
before retirement and (ii) proforma of verification of service including the certificate regarding
Industrial employee service and audit report are as per Appx - XI and XII respectively.

3. The spells of service are treated as verified the propose of pension with reference to history
of the service of the service book on the basis of entries regarding annual verification of
service recorded by the HO therein. The audit report is rendered in respect of only qualifying
service for pension.

4. In the case of Group 'D' Govt. servants governed by Min of Defence no. F.15 (a) 16/57/8749/
Q(Civ-II) dated 10.8.67 following certificate should be recorded in the service book and got
duly countersigened by the Pay Audit Officer.
(a) The post is non-Industrial in character.
(b) The post held by the individual was paid from Central Revenue as distinct from contingencies.
(c) The post had no other retirement benefits (e.g.., GP Fund, etc admissible under adhoc orders).
(d) The post has not specifically been declared as non-pensionable.
5. To audit the spells of ty service, the certificate to the effect that no portion of temporary
service was rendered in non-pensionable post, daily rated / casual establishment or in a post
paid out of contingencies may be entered in the service book. In the absence of such a
certificate the temporary service will not be admitted. In case service was paid out of
contingencies or was casual nature, particulars thereof be furnished. (For extra temporary
establishment / extra temporary authorization / casual (MES) service, please see para 7 (b)
below).

200
6. For Industrial employees option certificate for pensionary benefits in terms of Min of Defence
No. F.18/(1)60/1516/D(Civ-II) dated 14.02.62 should be furnished. In case the individual
failed to exercise option within the stipulated period, entry to that effect should be recorded
ins service document.

7. If the individual rendered in the following capacity the documents mentioned against each
should also be furnished.
a) War / Military service
(i) Certificate of verification War / Military service duly countersigned by the PAO.
(ii) Sheet Roll and discharge certificate War / Military service.
(iii) If the amount of service / gratuity paid in respect of such service has been refunded,
and entry to this effect should be got endorsed in service book by the Pay Accounts
Office.
b) Extra temporary establishment / Casual (MES) service etc
(i) Option certificate under Min of Def O,M. No. F.18(2/58/2976/D/Civ-II) dated 12.3.58
as amended. In case of failure to exercise option necessary entry to this effect be
made in the service book.
(ii) Service verification statement of IAFA - 357 duly verified by the LAO / Pay Accounts
Officer.
c) Contract - Service
(i) Election to count the service for pension in terms of Min of Def O.M. No 18 (17)/
3959/D(Civ-II) dated 09.04.59.
(ii) Certificate duly countersigned by the Pay Accounts Officer that the officer did not
draw inflated rate of pay during the period of contract service.
d) Service on IODP FUND/INDWP FUND /IOWP FUND TERMS
Option certificate under Min of Def letter No. 17 (1)/56/512/D(Civ-II) dated 13.01.58 and
No. 18 (4)/56/1349/D(Civ-II) dated 04.11.58. In case of failure to exercise option, necessary
in this regard should be made in the service document.

STREAMLINING OF PROCEDURE FOR SANCTION OF PENSION IN RESPECT

OF DEFENCE CIVILIANS OF AIRFORE ; DATA SHEET SYSTEM
363-A.
(I) Pension claims alongwith service books, data sheet and other connected documents in respect
of retiring defence civilian (other an Group 'D' non-industrial whose cases are dealt with by
pay section local) will be sent by AF units/formations to their respective LAOs (AF) /ALAOs
(AF). The data sheets would checked by the concerned LAOs (AF) / ALAOs (AF) with
reference to the individual's service book., the source document, and according to instructions
for checking the date sheet received from the main office from time to time.

201
(II) After carrying out necessary checks, pension claims on the prescribed data sheets and
connected papers will be sent directly by the LAO (AF) to PCDA (Pension) Allahabad within
a fortnight from then date of receipt of claim in his office. Service will not be sent to PCDA
(Pension) but returned to head of office.

(III) LAO (AF) / ALAO (AF) will maintain a register wherein all particulars of the individuals ,
date of receipt of claims, date of retirement of individuals and the date of dispatching of
claim to PCDA (P) Allahabad, date of returning other relevant documents / service book to
the unit will be recorded.

(IV) The progress of this work will be monitored by the office. For this purpose all LAOs (AF) /
ALAO (AF) will render a monthly report to the main office in the format prescribed at Appx
XIII to this Manual.

(V) Pensionary claims in respect of units / formations falling under the audit jurisdiction of ALAOs
(AF) will be forwarded by the units / formations to respective ALAOs (AF) who after carrying
out necessary checks will transmit these to the concerned LAOs (AF) for his signature. LAO
(AF) will, like other cases, forward the date sheet alongwith requisite documents to PCDA
(P) Allahabad direct and return to ALAOs (AF) and the other for onward transmission to
unit/formation. ALAO (AF) will thereafter transmit the documents to unit / formations.

ATTENDANCE REGISTER, TIME CHECK REGISTER, ABSENTEE REPORTS

364. Cent percent check will be exercised by the LAOs (AF) on the above documents. It will be
seen that :-
(i) entries in the Attendance Register and Time Check Registers are correctly exhibited in the
Absentee reports rendered to Civilian Administrative Section.
(ii) entries reflected in the Absentee reports are properly notified in office orders thus enabling
A.F. C.A.O to effect necessary recoveries; and
(iii) the No of paid holidays in a year to Civilian Industrial and casual personnel does not exceed
the authorised limit sanctioned by the Govt.

LIVERIES TO CLASS IV EMPLOYEES

365. Orders regarding the eligibility for and issue of uniform are contained in Govt. of India, Min
of Def. letter No. 12(3)/72/d (Civ-II) dated 21.11.72 as amended from time to time. Local
purchase vouchers in respect of items of liveries purchased are submitted to the P.C.D.A
(A.F.)/CDA(AF) by A.F. Units with their cash accounts for audit. Particulars regarding liveries
for the making of which expenditure is incurred are scheduled by the P.C.D.A (AF)/CDA(AF)
to the LAOs(AF)/ALAOs(AF). It will be ensured in Local Audit that the items have been
brought on charge by units in the register maintained for the purpose. The LAOs/ALAOs
(AF) will further ensure that:-
(a) Issue are made only to entitled personnel as laid down in current Govt. orders.

202
 (b) The frequency of issues confirms to the scale / life laid down in current Govt. orders.
(c) In the event of discharge/promotion, resignation or compulsory retirement as a result of
disciplinary proceeding against an employee, all items of uniforms are withdrawn from the
employee concerned or proportionate cost thereof is recovered. The items so withdrawn
(particularly the costly items) are issued to other employees for the remaining portion of
their life.
NOTE:- Uniforms, need not be withdrawn from employees, who are suffering, of have suffered from
infections or contagious disease or those who dies while in service.
(d) Employees proceeding on pension or leave preparatory to retirement are allowed to retain
only those items of uniforms as have out lived at least half of their prescribed life.
(e) In the case of transfer of employees from one A.F. Unit/Formation to another, the items of
liveries taken away by the employees are properly vouched to the new unit / Formation
concerned.

DEAD STOCK REGISTERS

366. All Dead Stock articles purchased by Air Force Units and formations out of the contingent
grant are brought on charge in a Dead Stock Register maintained by the Adjutant on behalf of
the C.O. This will be checked to see that:-
(a) The articles, as per particulars contained in the paid bill received from the C.D.A. (AF) for
verification has been correctly brought on charge. (See also note under para 66 of this
manual). Similarly, in respect of items of equipment purchased from unit Stores on
I.A.F.F.(Q)431, the cost of which is debitable to the units contingent grant, it will be seen
that the items have been brought on charge in the register.
NOTE:- Empty containers are also to be brought on charge in Dead Stock Register when no longer
required they are to be returned to Equipment Section on I.A.F.F. (Q) 448.
(b) The register is maintained neatly and there are no overwriting etc. of articles, quantities,
etc.,
(c) All the items charged off on CIV have been duly certified by the C.O. as due to fair, wear
and tear. Also that any other losses, if occurred have been properly investigated in the
normal manner and written of on I.A.F.F. (Q) 406 under order of the Competent Financial
Authority.
(d) Periodical checks including annual stock-taking of all stocks as per Dead Stock Register, as
per the current regulations have been carried out and any surpluses and deficiencies adjusted
in the normal manner.
(e) In the case of change of charge the taking over officer has certified as having taking over the
stock correctly as recorded in the register.
(f) It will be seen that a history card for each machine is maintained showing the cost of the
machine and expenditure incurred on repairs etc.

203
INTERNAL DEMANDS AND ISSUES AND ACCOUNTING OF DEAD STOCK
ARTICLES
367. It will be ensured that Receipt and Issue Vouchers registers separately for (i) Office machines
(typewrites, Duplicators, Fordigraphs, calculating machines etc.) (ii) Office Equipment (iii)
Filing Cabinets are maintained on financial year basis and internal receipts and issues are
made on manuscript vouchers allotted numbers from these registers and that then vouchers
are posted in the Dead Stock Register.

DISTRIBUTION LEDGER
368. It will be seen that all items of durable nature when issued to section and charged off from
Dead Stock Register by means of issue vouchers are accounted for in the Distribution Ledger.
Similarly, that all return of such items besides being taken on charge in the Dead Stock
Register are actioned in the Distribution Ledger.

TRANSFER OF ITEMS ON MOVE OF LODGER UNITS

369. Total amount of funds under contingent grant required by a Station / Wing / Formation etc.
(which includes the requirements of lodger units under its admin "Control" during a Financial
year, will be consolidated, demanded and controlled by Station authorities. All the items are
initially brought on charge in stock register by the Adjutant, who will thereafter issue the
items on individual loan card IAFF (Q) 444 to the Adjutant(s) of the Lodger unit(s). When a
lodger unit moves to another station the OC of the lodger unit details of 'Board of Officers'
(after obtaining order of OC Station) for assessing items and to take charge of the items
which are essential for the maintenance of his unit at the new Station. The adjutant of the
older Station will notify the items taken by the lodger unit to the new location to the Adjutant
of the new self-accounting unit. Two copies of this notification will be endorsed to LAO
(AF) of his station who will forward one copy to his counter-part at the New Station for
linking.
Action to bring on charge items at new station will be taken by the Adjutant of that Station
who will enter them in his 'Dead Stock Register' and issue them on loan card IAFF (F) 444 to
an officer of the lodger unit detailed for this purpose. He will also acknowledge receipt of the
items to the old station.
At the time of periodical audit, LAO (AF) at the old station from where the lodger unit
moved will verify that these acknowledgements are produced in support of the deletion entries
made in the 'Dead Stock Register'. Likewise B.O.C. action at the new Station is checked by
the LAO (AF) from the copy of the list of items transferred, sent to him earlier by the LAO of
the old station.

POSTAGE ACCOUNT
370. IAFZ-2094 received in support of cash accounts will be scheduled by Miscellaneous Section
to the LAOs (AF) /ALAOs (AF) for linking into the Postage account and return. No further
audit check necessary.

204
REGISTER OF MONEY ORDERS
371. The Defence Service Officers remitting money by Postal Money Order are required to maintain
a check register of money orders on IAFZ 2067 as laid down in Rule 309 (iii) (b) F.R. Part I.
The Register will be checked in local audit to see that:-
(i) the same is being maintained properly by the units in the prescribed form;
(ii) the same is posted upto date and each item bears the initials in the column provided for the
purpose.
(iii) The payee's receipt for the money orders are on record. For this purpose the duplicate copy
of Acq. Rolls regarding remittance of terminal credit balance of deceased airman received
from the unit with the monthly cash account and the payment vouchers relating to money
orders charges, if any, will be scheduled to LAOs/ALAOs (AF) by the Imprest Section of
PCDA (AF)/CDA(AF) for necessary verification.
(iv) The original letter from AFCAO / CDA (AF) etc., on the authority of which money order
remittances are made will also be linked with the Postal Receipts and the money order
acknowledgements to ensure that the Station to which the M.O has been sent and the name
of payee agree with those specified in the original document.
(v) The amounts on account of undelivered money order have been credited in the cash book
and the money order check register annotated accordingly. For this purpose details of
undelivered money orders will be furnished to Imprest Section of PCDA (AF)/CDA(AF),
for necessary verification in the cash book received by them and an acknowledgement thereof
obtained. The LAOs need not see units cash book in this connection.
TELEPHONE, TRUNK CALL / STD REGISTER
372. While auditing the above register, it should be ensured that:-
(a) the register is being maintained on the proforma given in Rule 97 F..R. Part II and that all
the calls are properly classified into private or official calls.
(b) Payments due from individuals have been released without un-due delay.
(c) in order to enable main office PCDA (AF)/CDA(AF) to ensure that charges for private
trunk calls are credited to Government a list (unit wise) of all private calls made in the
quarter should be prepared form the register maintained by the unit and the same forwarded
to main office 'M' section, after completion of quarterly/half yearly audit as the case may be.
The information will be given in the proforma given below:-
Sl. No. of unit T. Date Callers Name &
Tel. No. from which
Call Register
Rank P.A. No.
calls was booked
1 2 3 4
Remarks Classification of call Amount Due Ref. to CA Vrs. And
in Ord. and Urgent for Recovery month under which
the amount recovered
was credited by Govt.
1 2 3 4

205
REPAID AND MAINTENANCE OF OFFICE BICYCLES

373. Record of expenditure on repairs and maintenance of Government owned bicycles which
should be restricted as under per financial year, on average, is required to be maintained by
A.F. Units in a manuscript register prescribed for the purpose.

Rates per annum per bicycle

Ist Year Rs 105

2nd to 3rd Rs 210

4th to 6th Rs 305

Above 6th year Rs 305

Authority : CGDA letter No. AT/IV/4852/1 dated 12/08/2011

The register will be audited to see that:-

(i) all F. IAFF (Q) 431 in respect of bicycle repairs issued from A.F. stocks and F.423 in respect
of those locally purchased have been entered into the register.
(ii) Total expenditure on repairs and maintenance does not exceed the authorised monetary
limits as worked out with reference to the total number of bicycles held.

REGISTER OF APPROVED CONTRACTORS : LOCAL SERVICES

374. The register of approved contractors will be reviewed by the LAOs (AF) during the periodical
visits of AF units / Formations to see that it is properly maintained and the tenders are only
issued to those whose names appear in the Register. It will also be seen that a reasonable
number of contractors have been listed against each service so as to ensure health competition.
In certain Station where this criterion cannot be met on account of number of contractors
available being few, audit should convince itself of the correct position by suitable enquiries
locally. Cases in which tenders are found to have been issued to other than approved contracts
will be brought the notice of PCDA (AF).

AUDIT OF VOUCHERS AND DOCUMENTS IN RESPECT OF ITEMS OF

UNIFORM AND CLOTHING ISSUED TO FLIGHT CADETS AGAINST THEIR
OUTFIT ALLOWANCE PLACED AT THE DISPOSAL OF THE O.C. TRAINING
ESTABLISHMENT

375. The following checks will be exercised by the LAO:-

(i) check that personal ledger have been opened for cadets undergoing training vide para 4 of
E.A.I. 195/62.

206
 (ii) F. 431 relating to the issue to flight cadets will be linked with the personal ledger cent
percent after checking the correctness of price linking with SSR (Cs) may be done upto the
prescribed extent.
(iii) F.423 relating to tailoring will also be similarly linked with the entries in the Personal
Ledger.
(iv) During each visit the balance outstanding will be checked to find out the expenditure on
this accounts, does not exceed the prescribed limit. Further the unexpended portion of the
allowance has been paid to flight cadets on commissioning and in case of excess payment
necessary action has been taken by the unit to intimate recovery to A.F.C.A.O and his
acknowledgement obtained.
(v) If the flight cadet is not retained in service (resigns, removed or with-drawn prior to
commissioning) the articles of uniform provided to him have been withdrawn and auctioned.
Further the sale proceeds have been certified to the Government. Please also refer to para
132.

CINEMA REGISTER

376. I.A.F. Units have been authorized to use training projectors for screening of entertainment
films for troops including their families under circumstances specified in relevant Government
order. It will be ensured in Local Audit that except for the units in operational areas and
hospitals (in whose case the use of training projectors for screening of entertainment films
has been allowed without any restriction), the training projectors for screening of entertainment
films have only been used by IAF units that are located beyond five miles from the nearest
public cinema. It will also be seen that a cinema register has been maintained by the units
using the training projectors for recreation. The register will be examined to seen that:-
(i) It has been properly maintained on the prescribed form and kept posted upto date;
(ii) The admission fee at the rate of paise 12 per head per show has been recovered from all
personnel attending and credited to public fund account. This charge is to cover the cost of
electricity consumed and fair wear and tear of training projectors. For this purpose, the
audit section of PCDA (AF)/CDA(AF) Office will send cash account vouchers showing
amounts credited to Government on account of money realized from Air Force personnel
from the sale of Cinema tickets to LAOs (AF) for verification from the Cinema Register.
These vouchers will be returned to the PCDA (AF)/CDA(AF) in due course duly verified.
NOTE:- The admission in the case of patients and hospital staff in attendance is free.

MESSING CHARGES

377. Candidates called up for interview at the Air Force Station Board when messing the IAF
Officer's mess, will be entitled to messing allowance including hot water charges at the rate
sanctioned from time to time. These charges are to be claimed by the IAF Officer's Mess
duly supported with necessary details. The paid vouchers on the above account will be
scheduled to Local Audit Officer to ensure that messing allowances has been correctly claimed

207
 with reference to the call up register and other documents maintained at the unit. The scope
of check will be 33 1/3% of the entries for whom messing allowances are claimed.

PROPERTY BOOK - MINOR TRAINING GRANT

378. (a) It will be seen that the book is maintained in the prescribed proforma.
(b) that all non consumable items (i.e. those having a life of 3 years of more) have been taken
on charge.
(c) that the items manufactured from the materials issued are also brought on charge.
(d) that the items are checked once a year by a board of officers convened by the Commanding
Officer.
(e) that the discrepancies revealed during the check are regularized on the authority /
recommendations of the Board by strike off / write off procedure as laid down in IAP 1501.
(f) that 'strike off' is supported by CIV and certified due to fair wear and tear.
(g) that handing over / taking over certificates on change of responsibility have been signed by
the officer concerned and countersigned by the Commanding Officer.
(h) that the voucher register and vouchers RVs / IVs etc are maintained in the same manner as
for ACES properly.

OVERTIME REGISTER
379. The following checks are to be exercised.
(i) the register is properly maintained in prescribed form and each entry is initialed by the
officer / unit / formation commander.
(ii) The overtime work is authorised by the head of officer etc., before hand.
(iii) The nature of work performed during the overtime work was really urgent which in public
interest could not be postponed till the next working day. Apparent misuse of the concession
should be discussed with the Administrative authorities and advice rendered where necessary.

GIFT STORES - RECEIPTS AND ACCOUNTING

380. It will be seen that -

(i) a separate register is maintained by units / Depots receiving the stores Prominently enfaced
Gift Stores.
(iii) all gift stores will be taken on ledger charge on CRVs which will be controlled from separate
control number series and accounted for separately from all other Government stores.
However, PVMS items, in lieu of PVMS items, Heavy engineering equipment and Ordinance
type of equipment will be merged into normal Government stock.
(iv) items received in other than serviceable condition will be passed on RSSD / Salvage where
necessary as per normal procedure.
(v) allocation of gift stores to commands will be made by Air Headquarters. The stores will be
struck off ledger in normal manner.
208
 (vi) station / units to whom stores are dispatched will clear the receipted copies of issue vrs, to
the holding units / Depots from where the stores were issued.
(vii) the stores purchased out of cash gifts are also to be accounted for in the gift stores ledger.
NOTE- Amount received as Cash Gifts are also to be accounted for in non-public fund account, and
are to be utilized in consultation with Air Headquarters.
In the case of Station / Units on War system of Accounting, no further detailed accounting will be
necessary. These unit will however, clear the receipted copies to the consignor concerned. Command
Headquarters will certify to Air Headquarters that the stores have been distributed. Gifts stores will not
normally be distributed to units in peace area.

AUDIT OF E.D.P. / AFNET / IMMOLS SECTIONS

381. With the introduction of IMMOLS and EQUOLS in the I.A.F., the EDP Section, AFNET
Section and IMMOLS Sections have been introduced in each self accounting unit. The
following type of documents being maintained by these sections are required to be audited
during the periodical audit as per audit checks prescribed for these type of registers in other
Misc. sections.
(i) Budget Allotment Register.
(ii) I.V. / R.V. Register.
(iii) Dead Stock Register for consumable items.
(iv) Dead Stock Register for non consumable items.
(v) Log Books of Computer Hardware / Plant & Machinery.
(vi) Fuel Consumption Register.

WIRELESS MAINTENANCE GRANT REGISTER

382. The above register is maintained by the Units / Station / Wing / Signal Officer for recording
items purchase out of this grant. The register will be audited to see that -

(i) all items purchased or obtained from service source are entered in the register

(ii) the manner of utilization of the items has been indicated in the register.

SECURITY DEPOSIT REGISTER OF CIVILIAN STORE KEEPERS

383. It will be seen that -
(i) the register is maintained by the AF units where civilian storekeeper are serving.
(ii) that the names of all civilian storekeepers are entered therein.
(iii) that amount recovered and the form in which recovered is recorded therein.
(iv) that the post office saving bank A/c post office cash certificates (as the case may be) has /
have been pledged in the name of officer Commanding Unit.

209
 (v) to ensure in audit that recoveries are effected from all individual from whom security Deposits
are recoverable, a list of storekeepers may be obtained from Dy CDA (AF) New Delhi.
383-A Security deposit register for deposit of Rs. 250/- per gas cylinder and Rs. 30/- per pressure
regulators is properly maintained by SAO as per prescribed proforma and receipt of the gas
dealer is obtained and recorded properly which will be verified at the time of initial audit of
the above register and fresh purchases will be verified on subsequent visits.

Authy - Para 3 of AFO 21/87as amended from time to time.

UNIFORM RECORD CARD OF FIRE FIGHTING PERSONNEL

384. The above Card is maintained for each fire fighter and serves as a record of distribution of
uniform. It will be seen that -
(i) then card is allotted sl. Number and entered in manuscript register maintained for the purpose.
(ii) the signature of recipient is obtained in the column provided.
(iii) all the issues and exchanges are actioned in the uniform Record Card with a view to ensuring
that frequency of issue / exchange is in accordance with period laid down in the scale
prescribed in Govt. orders.
(iv) In the case of civilian fire fighting personnel transferred to other unit to fill up authorised
establishment vacancies acknowledgement from that unit in respect of the uniform Record
Card transferred is held on record and that manuscript register of uniform record card is
marked suitably.
(v) In the event of discharge / resignation / transfer to a section other than fire section, of an
individual the items of uniform have been withdrawn and returned to Store.

REGISTER OF UNIFORM RECORD CARDS OF FIRE FIGHTING PERSONNEL

385. It will be seen that all the cards entered in the register have been produced to audit.

AUDIT OF ACCOUNTS OF DEFENCE LANDS HELD BY AIRFORCE

AUTHORITIES

385 A - In respect of all defence lands held by air force authorities either requisitioned or hired or
acquired, it should be ensured that the following documents are maintained-
1. Unit/Formation Land Register (GENERAL).
2. Unit register of trees/usufructs.
(a) Register of trees/usufructs maintained out of govt. funds.
(b) Register of trees/unufructs maintained out of regimental funds.
3. Register of defence lands under cultivation.
All registers are required to be checked by the LAOs (AF) DURING THEIR PERIODICAL
VISITS TO AIR FORCE UNITS/Formations and should be included in the list of auditable

210
 documents maintained by them. The following drill will be observed in auditing the above
registers-
I-Unit / Formation Land Register (General)
It will be seen that :-
(a) The basic details such as area and other information shown in the register are in accordance
with the details received from DEOs at the time of transfer of lands to AIR FORCE and that
subsequent changes are also noted with authority therefore.
(b) Physical verification of actual area held is done by a Board of Officers once in a year and
the results recorded indicating encroachment if any and action therefore.
(c) The register is signed by the C.O OF THE USER"S Establishment.
(d) The extent of cultivation of land is shown separately in the register.
(e) The stretches of land un-utilized are shown separately.
(f) Stretches of land which have been utilized not for the purpose for which they were acquired
/requisitioned and such alternate use has the sanction of competent authority.
(g) That in case of surrender of surplus lands to D.D.L. & C, The LAO of DEOs accounts
should be informed with details.
The register will be maintained by the AIR FORCE authorities in the proforma given below;
Sl No Date Area of land Khasra Cost Ref No. of Govt.
acquired in acres No. sanction for
Acquisition.
(1) (2) (3) (4) (5) (6)

II. Unit Register of Trees/Usufructs

(a) Register of trees/usufructs maintained out of Govt. funds
(b) Register of trees/usufructs maintained out of regimental funds.
In the audit of register of trees/usufructs, it will be seen that-
(a) The register is maintained in two parts (i)trees/usufructs maintained out of Govt. funds
maintained out of Regimental funds separately.
(b) The register contains all details of trees category-wise located in the area occupied by the
AIR FORCE Authorities.
(c) Physical verification of trees is carried once in a year.
(d) The amount realized as a result of disposal of usufructs / dries up trees / grass etc., in the
area either by auction or by contract are credited to government on MROs and the same are
forwarded to PCDA (AF)/CDA(AF) for adjustment or credited through cash accounts. It

211
 should also be ensured that amounts realized are in accordance with contract agreement /
auction deed etc.
NOTE:- For above purpose auction deeds / contract agreements dealt with in Main Office will be sent
to the respective LAOs.
The register will be maintained on the proforma given below:-
Sl No Name / Location of No of trees planted / Type / Description No of trees
Area where tree planted / available of trees Perished /
available removed
(1) (2) (3) (4) (5)

No of Progressive Sale proceeds Gross Gross Expdr. Net profit Profit

trees Total through Income During the during the how
existing Contract or during the period period utilised
otherwise period
(1) (2) (3) (4) (5)

NOTE 1:- Same columns will be allotted for register on trees maintained out of regimental funds.
NOTE 2:- records of trees of different types should be maintained on separate sheets so that details of
trees of one type available at different locations are available at one place.

III. Register of Defence Lands under cultivation

Lands close or adjacent to unit lines or with in the perimeter of the installation and units /
Establishments or any other lands which can not be placed at the disposal of DDL&C on
account of security considerations can be cultivated through troop labour to the extent feasible
subject to the following conditions:-
(i) Only troop labour or where feasible security cleared private labour will be employed.
(ii) Unit / Formations shall not give defence lands to private parties for cultivation on lease
basis or on the basis of crops.
(iii) For land cultivated by troops or security cleared private labour no payment will be made by
the Air Force Authorities if the land cultivated is not in excess of that arrived at the scale of
4 acres for 1000 troops in the unit / formation concerned.
(iv) In respect of land in excess of the limit at (iii) above, 1/4th of net annual profit as per
audited figures of the Regimental fund shall be paid to the Government.
(v) In case of certain establishments and installation as Ordnance Depots, Ammunition Depots.
Air Field and so on where certain areas of lands of the perimeter and with in the establishment
have to be left uncultivated for reasons of security or safety, no charges will be levied even
if the land is in excess of the scale at (iii) above provided such land is not cultivated.

212
 (vi) In the audit of register of Defence lands under cultivation it will be seen that:-
(a) Details of lands under cultivation regimentally of otherwise are recorded clearly and
correctly.
(b) The items produced are disposed off according to instruction on the subject issued
from time to time by Air HQrs.
(c) That in respect of item conforming to ASC specifications and utilized either by the unit
themselves or handed over to the ASC Depots, the amount paid by the CDA agrees with the
amount shown in the register.
(d) That in respect of items not conforming to ASC specifications and disposed off locally see
that they are supported by authenticated documents duly attested by COs and amount correctly
reflected in the register.
(e) That 1/4th of net profit arrived at for crediting in the Govt. Accounts is based on the above
realization and the amounts are credited either on MRO or through Cash Accounts and
details are recorded against the entries.
(f) In case of fruits grown in regimental garden the entire amount is to be credited to Government.
NOTE 1:- For the purpose of verification by the LAOs as to whether Government dues, if any, are correctly
realized by the unit and credited to the Government, the store section of the CDA (AF) will forward a copy of
paid vouchers / details of payment to the LAOs concerned, where the articles produced are consumed by the
unit itself one copy of CRV will be scheduled to the LAO for verification of credits in the Ration Return
IAFS- 1519.
NOTE2:- Non-realization of Government dues will be reported by the LAOs to Store Section of the M.O for
further action and realization of the same through Demand Register.
The register will be maintained by the Units /Formations in the proforma given below

Para 385-B: - Register for recording the occupancy of the Guest Room attached to the officers Mess.
Para 385-C: - while checking the register of recording the occupancy of the Guest Room will be seen:-
(i) That the Register is maintained in the Format IAFW 1783 used in MESS 1 B.
(ii) Occupancy of the Guest Room are recorded in the Register.
(iii) Charges prescribed vide Govt. of India, Min. of Def. letter No. 43012/Q3(B-I)/5677/D(Q&C)
Dt. 23-12-91 are recovered from the occupants and promptly accounted for in public Fund
cash Book and remitted in to Treasury.
(iv) Any deviation in the execution will be referred to the respective Hqr for clarification and
approval. These are the checks to be exercised by the Laos carrying out the audit of Cash &
Stores accounts of units and formations under whom the Guest Rooms are functioning.

213
Para 385-D:- The following drill is to be gone through while examining the commercial use of
defence land.

(i) Is there any commercial utilisation of defence land?

(ii) What commercial activities are carried out on defence land?

a) Shopping complex

b) Banks

c) Cable/dish operators.

d) Restaurants

e) R.O. water plants.

f) Electricity insulation and distribution plants.

g) Kinder garten/crèches/schools

h) Cyber cafes

i) Vocational training centers viz, sowing, knitting, embroidery classes, computer

training centers etc.

j) Private gas agencies.

k) Any other activity

(iii) Is each of these activities approved by BoO separately?

(iv) Is there any lease agreement done with all parties for carrying out these activities?

(v) Rate of rental and allied charges are approved by BoO.

(vi) Are these rates at par with market rates.

(vii) Are these shopping complexes run on premises raised by Govt. Funds? Whether
revenue is being deposited in PF in terms of Govt. of India, Min. of Defence letter
No. 11026/S/2000/D(Lands) dated 04th Jan. 2001 as amended vide Govt. of India,
Min. of Defence ibid letter dated 25th Feb. 2005.

214
 CHAPTER XIX

AUDIT OF MISC. ALLOWANCE PAYMENT OF WHICH HAS BEEN RECORDED

ON LOCAL ALLOWANCE RECORD CARD: I.A.F.F. 1547

Topics Para
List of Documents 386
General 387-388
Register of Outstanding claims 389
Personnel occurrence reports 390
Check of IAFF 1505 and composite claims IAFF 1541 391
Audit of living out ration allowance 392
Audit of leave rate ration allowance 393
Journey rate ration allowance 394
Cash ration allowance to air crew employed on Long Duration Flights 395
Some misc. provisions 396
Conservancy / water carrier allowance 397
Cash allowance to airmen (including MWOs, WOs, on the authorised
Married Estt. When transferred from one place to another on transfer) 398
Compensation in lieu of quarters 399
Conveyance allowance 400
Road mileage allowance 401
Claims for reimbursement of out of pocket expense: Airmen on
provost Duties 402
Journey daily allowance to a Airman while moving on duty 403
Audit check of children education allowance 404
Re-imbursement of tuition fees 405
Payment of hostel subsidy 406
Claims on account of subsidy for the purchase of books 407
General 408

LIST OF DOCUMENTS

386. The list of documents maintained in connection with payment of Misc. Local allowance
which are subjected to audit are given in Appx. VI of this manual.

215
GENERAL

387. Payment on account of the following allowance which are not credited in IRLAs is made at
unit level. With effect from 1-1-1989 a unit ledger (IAFF (F) 1547 modified) as per AFO 26/
88 as amended from time to time is to be maintained for crediting the allowances to each
airmen/NC(E ).
(a) (i) Living out Ration Allowance (L.O.R.A)
(ii) Leave Rate Ration Allowance (LRRA)
(iii) Journey rate ration allowance (J.R.R.A)
(iv) Out station and other ration allowances
(b) Compensation in lieu of quarters (CLIQ).
(c) Conservancy / water carrier allowance.
(d) Conveyance allowance.
(e) Compensation in lieu of furniture.
(f) Children education allowance (CEA).
(g) Re-imbursement of tuition fees (ROTF).
(h) Hostel Subsidy.
(i) Monetary allowance in lieu of Rum.
The following claims, although not credited in the unit ledger are to be registered in the unit
Ledger in the column provided for:
(a) Road/River conveyance allowance.
(b) Out of pocket allowance to IAFF/provost personnel.
(c) Posting claim including packing allowance/cash allowances/Journey DA and cost of
conveyance of luggage.
(d) Temporary duty claims.
(e) LTC including Reservation/Sleeper charges.
A manuscript register called unit ledger card/CCI card register (IAFF/F) 1563 is to be
maintained to record the opening and closing of unit ledgers as per Appendix 'C' to AFO 26/
88as amended from time to time.

388. The following checks are exercised on the above documents.-

(a) MANUSCRIPT REGISTER (unit ledger register) It will be seen that. ---
(i) The register is complete and all the columns have been duly filled in.
(ii) The serial No. from this register is to be allotted on the unit ledger.
(iii) Number of cards physically held tallies with the number shown in the register.

216
 (iv) Cards have been opened for all the airmen at the station. The audited IAFZ 3033 and
PORs may be consulted for this purpose.
(v) In respect of airmen posted out become NE, the closure of the card is endorsed against
relevant entry in the Register and attested by the Accountant Officer.
(vi) Not more than one card has been opened for any airmen.
(vii) All cards have been produced to audit.
(viii) In respect of Airmen on temporary duty/attachment unit ledgers are maintained at
parent unit only & not by the unit to which the airmen are attached. Payment authorised
through POR by unit at which an airman is attached on temporary duty, is actioned in
the register of claim. IAC (F) of [Link], station will see that the schedule as per
APPX. 'H' to AFO 26/88 as amended from time to time is correctly prepared with
reference to claims and forwarded to parent unit. He will also forward a copy of
acquaintance roll along with schedule ibid, to his counterpart at parent unit.
(b) UNIT LEDGER CARDS:-
(i) The ledgers cards are arranged in the order of service Nos./ section wise
(ii) Particulars at the head of each card e.g. Unit Service No., Rank, Name, Group, etc.,
are completed and the signature have been affixed.
(iii) Credit actioned in the unit ledger are based upon the PORs (local) and entered in
current moth column irrespective of the month to which the allowance relate. Credit's
entry in respect of arrears of any allowance which are three months old are entered in
the unit ledger only after the entry in the POR is interlinked by SNCO/AO. For this
purpose POR will be checked to see that entitlement has been correctly worked out
and bears the initials of Account staff having actioned the entries of PORs.
(iv) When the credits are made on the basis of extracts of POR it will be seen that PORs
have been received and linked.
(v) When LRRA/JRRA have been paid in advance it should be seen that column "From
"to" if the relevant month have been endorsed as "Nil" to avoid double payments.
(vi) The allowance of continuing nature e.g. LORA, CLIQ conservancy etc. are authorised
through PORs twice a year on Ist April and Ist October. Credit for subsequent months
will be verified after ensuring that PORs for cessation of allowance has not been
notified.
(vii) Amount paid on account of local allowance with cash account particulars and date of
payment entered in the unit ledger agrees with the amount shown on the acquaintance
roll and outstanding credits reflected in the monthly summary agrees with the credits
in the unit ledger. On receipt of copy of acquaintance roll along with a schedule referred
to in para 388(a) (viii) above the LAO (AF) of parent unit will verify the entries in the
unit ledger of the airmen.
(viii) All recoveries effected on account of overpayments are annotat4edin the blank column
in red ink against the monthly cage to which the recoveries pertain. The recoveries
are also registered in the recovery register where cash account voucher is quoted.

217
 (ix) In respect of individuals on Ty. Attachment if the payment is to be effected at outstation
the same is made through cheque/draft in favour of public Fund account of the unit
LAO (AF) of the parent unit will see that the Debit/Credit viz IAFF (F) 1508 and
1509, raised by parent unit have been cross referred and the acquaintance roll bears
the receipt of the airman LAO (AF) of TD unit will also see that receipted copy of
acquaintance roll is available with the unit in support of payment.
(x) Initials of a airmen having exercised the scrutiny quarterly are made in the right hand
bottom corner of the ledger card.
(xi) Closed ledger cards are transferred to dead card box & suitably endorsed.
388. (c) MONETARY ALLOWANCE IN LIEU OF RUM:-
(i) In the case of payments of monetary allowance in lieu of Rum the initial POR,
specifying the area and rate of allowance is promulgated.
(ii) Cessation/authorisation of the allowance for posting in outcases is notified in PORs
and the amount has been calculated correctly and mentioned against the same of the
individual.
(iii) Whenever presence of an individual is reduced to lesser than 20 days in calendar
month on account of allowance recoverable is promulgated in POR specifying the
period of leave/admission to hospital.
(iv) Change in the rate of allowance due to movement of individual on Ty. Duty to place
where higher rate of allowance is admissible; the authorised recovery of allowance is
effected correctly.
Authority: AFO/43/88as amended from time to time.
NOTE: 1. Abnition trainees undergoing training at various institutes are entitled to the allowance
actionable in unit ledger during their midterm base which is of a 4 weeks duration Accounting action
got abnition trainees is done in the register. As such no ledger card is opened for abnition trainees.
NOTE : 2. In the case of airmen/NCs(E) who are posted or attached to Army units Navy establishments,
the existing procedure for payments of local allowances by raising vouchers will continue. These
allowances are to be actioned in the unit ledger by nearest AF Accounting unit.

REGISTER FOR CLAIMS FOR PAYMENT OF RATION ALLOWANCE TO

PERSONNEL ON TY. DUTY/DETACHMENT

389. This is a Register to record chronologically vouchers received in respect of Airmen moving
into a unit and in whose case IAFF(F) 1541 ( composite claims in respact of living out
allowance,airmen) , have bneen received with the NPCs issued by their formers units It will
be seen that:-
(i) The register is complete.
(ii) Bills received from other units have been registered chronologically and correctly.
(iii) Cash accounts particulars have been entered in the relavent coloumn against each claim.

218
 (iv) Details of cash avccount Vouchers No and the amount paid have been intimated to the
previos unit without delay.
(v) entries made in the registers have been authenticated.
(vi) Periodical review by the Accountant Officer has been Carried out as required under AFO
689/76as amended from time to time.

PERSONNEL OCCURRENCE REPORTS LOCAL

390. Before commencing audit of [Link] it is to be ensured that all the PORs promulgated during
the period of audit have been received and no POR is missing It should be seen that entries
promulagted in PORSs in regard to the commencement, cessation etc. of the various allowances
are in accordance with the prescribed rules and all the requisite certificates (vide Appx "B" to
AFO 101/77as amended from time to time) are endorsed thereon.

NOTE: - PORs are promulagted in respect of the following allowances:-

(a) Living Out Ration Allowance.
(b) Compensation in lieu of quarters.
(c) Conservancy allowance
(d) Conveyance allowance.
(e) Children education allowance (CEA)
(f) Re-imbursement of tuition fee (ROTF)
(g) Hostel subsidy (HS)
(h) Monetary allowance in lieu of Rum.
The allowance of continues nature like LORA, CLIQ, Conversancy allowance except conveyance
allowance are to be authorised 1st April and 1st October of every year in addition to any Intermediate
changes notified from time to time. Conveyance allowance is to be authorised monthly. It is to be
ensured on audit that cessation of these allowances have not been notified in subsequent PORs. the
allowances of non-continues nature are to be authorised as and when casualty occurs.

It will also be ensured that the rates of various allowances promulagted in the PORs are correct
with the reference to the orders issued from time to time.

CHECK OF IAFF 1505 AND COMPOSITE CLAIMS: IAFF 1541

391. After payment copy of IAFF (1505) along with duplicate copy of acquaintance roll and
schedule of sub vouchers will be received within three working days of following months.
Monthly summary of outstanding credits as per the unit closing ledger is to be received by
15th of the following month:
(i) It will be ensured that all acquaintance rolls pertaining to the months as listed there in have
been received.
(ii) That credits shown in the summary agrees with the balances in the unit ledger card.

219
AUDIT OF LIVING OUT RATION ALLOWANCE

392. Living out Ration Allowance is Paid to airmen in lieu of rations in kind when they are
authorised to live out. Personnel occurrence Reports regarding commencement and cessation
of the allowance are promulagted as and when casualty occurs . where the allowances is in
issue continuosly personnel occurence Reports to that effect the promulagted on 1st April
and 1st october the Entilements and payments of LORA are recorded inUnit Ledger Card
maintained in accordance with the procedures laid down in AFO 689/76as amended from
time to time. In addition to the audit checks prescribed for scruinty of these cards ,vide 388
above it should be seen that:-
(i) the names of all the airmen promulagted in personnel occurence Reports as drawing Living
Out Ration Allowance in April and october each year agree with the details given on IAFZ
3033
(ii) Free Rations in kind are not drawnfor persons who are authorised to draw Living out Ration
Allowance
(iii) All PORs for the commecment or cessation of the Living Out Ration Allowances have
been actioned in the UNIT LEDGERCARD and the monthly entitlement of each individual
has been correctly worked out with refernce to the rate of Living Out Ration Allowances
prevaling during the month.
NOTE :- the currents rates of ration allowance admissble to MWOs/WOs, airmen (including apprentices)
and Ncs(E) are laid down in (AFI 129/70 as amended from time to time.
(iv) The allowance is not drawn for the period of an airmen remains in hospital or is on leave or
is kept under detention or is in receipt of Leave Rate Ration Allowance/Journey Rate
Ration Allowance

AUDIT OF LEAVE RATE RATION ALLOWANCE

393. Leave Rate Ration Allowance is paid to all airmen, when they proceed on leave, it will be
seen that:-
(i) All PORs sanctioned/cancelling or outtailing leave of airmen are correctly posted in the
UNIT LEDGERCARD
(ii) The entitlement of each airman shown in the UNIT LEDGERCARD with reference to the
period of leave sanctioned and the rate of Leave Rate Ration Allowance is correct.
(iii) All entries in PORs relating to curtailment or cancellation of leave are checked to see that
necessary recovery of leave Rate Ration Allowance for the unexpired portion of leave have
been effected.
(iv) Claims are raised on IAFF (F) 1550 in accordance with AFO 309/70as amended from time
to time.

220
JOURNEY RATE RATION ALLOWANCE

394. Journey rate Ration Allowance at the rate applicable form time to time may be paid in advance
to an airmen travelling on posting, temporary duty, escort duty and leave by rail and/or road,
provided the O.C. station/unit certifies that it is not feasible or economical to the government
to issue rations in kind

It will be seen that:-

(i) No allowance is paid for the day for which either free ration have been issued or an allowance
in lieu has been paid.
(ii) When travelling by road/rail, the duration of journey exceeds 6 hours and it does not
commence and conclude between 22 hours and 6 hours. On the following morning for
counting the period on any day as one full day.
NOTE:- Duration of journey time will include the time normally required to convey airmen form
unit to Railway Station and vice-versa, where scheduled M.T. runs are laid down by the units for
conveyance for airmen proceeding on duty/ leave form the unit to the railway station and vice-
versa, the actual time of departure and return of the particular. M.T. will be considered as the time
of commencement and termination respectively of the journey. In case of airmen proceeding on
leave, however, the period of time required for the journey by road form rail-head at destination
and vice-versa (for which road allowance is admissible under rule 352 Travel Regulations) will
also be taken into account.

(iii) Where reserve Ration Allowances are issued to airmen under Rule 353 Pay and Allowances
Regulations (AF) claims in final settlement are received and adjusted before the Pay day on
which pay is disbursed to the individuals after return to the parent unit.
(iv) Claims are raised on IAFF (F) 1534 in cases of individual travelling on posting/ty. Duty,
escort duty or moves and leave by rail/road to the same destination in party of less than 20
in number in other cases of leave journeys; the claims are preferred on IAFF (F) 1550.

CASH RATION ALLOWANCE TO AIR CREWS EMPLOYED ON LONG

DURATION FLIGHTS

395. While auditing the claims it will be seen that claims is preferred on IAFF 115 and the following
certificates are endorsed.
(a) The time shown on the statement is the same as recorded in the flight authorization book.
(b) No ordinary flying rations or emergency flying ration have been issued for the period involved.

SOME MISC PROVISION

396. (i) In the case of airmen (including MWO/WOs) who are detained on the temporary duty at
outstations, or are attending camps where rations cannot be supplied by the Government, it
will be seen that the payment of special rate of ration allowance is regulated as follows:-

221
 (a) Actual expenses including fees, if any, for DAK BUNGALOWS etc., as certified by
the C.O. of the individual, subject to maximum of rates as laid down in AFI 129/70as
amended from time to time.
(b) Claims for periods in excess of 10 days are sanctioned as under:-
(i) Up to 30 days by Station Commander.
(ii) Beyond 30 days by the AOC-in-C
(ii) In cases where advance of Ratio Allowance at full rate to personnel detained on temporary
duty at an outstation for the anticipated number of days for which they are likely to be
detained at outstation is paid, it will be seen that the following conditions are fulfilled:-
(a) Payments made is supported by a certificate form the OC Unit/Formation concerned
that he is satisfied that rations in kind cannot be issued to the individuals at the stations
to which he is detailed on temporary duty, and that on completion of temporary duty,
the individual has rendered a certificate that the amount drawn was actually spent on
boarding and lodging during the period of halt at outstation ,
(b) [Link] issued for the grant of ration allowance bear certificate of non-issue of ration
in kind
(iii) in the cases of individuals granted leave pending discharge/release, it will be seen that the
leave ration allowance for the period of such leave has been paid at the rate admissible at
the time of discharge /release and that no adjustment is made later if the allowance is increased
or decreased irrespective of whether the increase/decrease may be applicable for the period
of leave.
(iv) Ration allowance during joining time is admissible to airmen (including MWOs/WOs). It
will be seen that:-
(a) The allowance is paid at the same rates they were in receipt at the time of being struck
off ration strength from the despatching unit.
(b) In the case of airmen drawing ration in kind before being SORs the same is paid at
lower rate.
(c) Ration allowance is not paid for the actual duration of journey for which airmen are
entitled to J.R.R.A.

CONSERVANCY/WATER CARRIER ALLOWANCE

397. It will be seen that the rates fixed by the OC station are within the maximum limits prescribed
for different ranks vide Rule 301 P & A Regulations. Where higher rates have been fixed the
same has been done in consultation with Regional CDA. It should be verified in audit that
the rates admitted are in accordance with the certificates obtained from the Municipal authority/
Regional CDA. However, where the rates have been admitted based on (Army) Station Orders,
such verification is not necessary.
Where piped water supply exists the water carrier element has been deducted from the claims.
in case of absence on leave/Ty. Duty the conditions laid down in rule 303 P&A Regs. are
satisfied.
398. Blank

222
COMPENSATION IN LIEU OF QUARTERS

399. It will be seen that:-

(a) The individual is within the authorised married establishment as prescribed in AFI 14/S/
68as amended from time to time.
(b) The rate at which the allowance is admitted is in accordance with the current rates prescribed
in AFIs etc.
(c) where airmen are permitted to live out in houses owned by them, or by their wives, children
or parents, the rental value of the house as assessed by the Local Municipality authorities is
not less than the amount paid vide Rule 488 Pay and Allowances Regulations (AF).
(d) It is certified that airmen could not be provided with Government accommodation and have
been permitted to live out.
(e) During Ty. Absence on duty/leave other than leave pending retirement/discharge the
conditions prescribed in Rule 449 Pay and Allowances Regulations IAF are fulfilled.
(f) In the case of airmen retaining private married accommodation at their previous stations the
payment of CLIQ is regulated in accordance with AFO 394/76 as amended from time to
time.

CONVEYANCE ALLOWANCE
400. While auditing conveyance allowance claims, it should be ensured that:-
(a) The rates are correct according to the current orders:
(b) Where individuals who have drawn bicycle advances are extensively granted higher rate of
conveyance allowance applicable in respect of use of Public conveyance, the payments may
be examined form a higher audit point, keeping in view the principles contained in Air
HQrs No. Air HQ /25755/45/D Accts. Dt. 13-7-70.

ROAD MILEAGE ALLOWANCE

401. It will be seen in audit that:-

(a) The allowance has been paid in IAFF (F) 1549 (Appendix to AFO 414/71 as amended from
time to time).
(b) The rates and conditions prescribed in T.R. 352 are satisfied.

CLAIMS FOR REIMBURSEMENT OF OUT OF POCKET EXPENSES TO IAF

PROVOST PERSONNEL AND AIRMEN OF DUTY LIAISON

402. It will be seen that:-

(a) The rates of reimbursement claimed are in accordance with the current regulations (current
rates are given in AFO 187/75 as amended from time to time).
(b) The claims are preferred on Form IAFA 115 duly countersigned by the O.C. of the unit
concerned.

223
 (c) the claims are suitably cross linked with D A claims in respect of officers and Ration
Allowance claims in respect of airmen, to ensure that the messing element included in DA
in respect of officers and Ration Allowance in the case of Airmen are not drawn for the
same period for which the out of pocket allowance has been claimed.
(d) Requisite certificates as given in Para 6 of AFO 187/75 as amended from time to time have
been endorsed on the contingent bill.
(e) Claims are duly supported by vouchers in support of the expenditure.
(f) Whenever the same is not possible, the sanction of the APM/DAPM/OC Liaison is produced
for waiving the, condition of production of the receipt and vouchers.

TA/DA CLAIMS IN RESPECT OF AIRMEN/NC(E) WHILE MOVING ON

TEMPORARY DUTY

403. The service personnel below officer rank are entitled to JDA/Halt DA on Temporary duty
moves as under :

(a) If provided with free boarding and lodging An amount equal to 25% of the
DA Admissible to the civilians
of corresponding pay groups

(b) When not provided with free boarding An amount equal to 50% of the
and lodging DA Admissible to the civilians
of corresponding pay groups
plus lower rate of ration money
It will be seen in audit that:-
(i) The TA claim is preferred by the Airmen/NCs(E) on IAFT-1716 and is supported with Cash
receipts wherever applicable.
(ii) The POR authorising temporary duty showing the timings actually occupied in the journey
together with number of days/hours for which DA is admissible in each case, is indicated.
(iii) No payment has been made for journey less than six hours. DA for journey of 6 hours and
above but less than 12 hours has been paid at 70% of the normal entitlement.
(iv) The analysis of the amount paid on account of DA has been made on IAFF 1505 to facilitate
the booking of expenditure by the PCDA(AF)/CDA(AF).
(v) The amount has been paid in arrears only.
(vi) LRRA/JRRA claims are raised separately on IAFF (F) 1534.
404. The under mentioned claims will be carried out with reference to the registers maintained by
the air force units/formations:-
(a) Reimbursements of tuition fees registers in respect of children of civilians paid form DSE.
(b) Reimbursement of TF registers in respect of Air Men and NCs(E).

224
 (c) Register for children education allowance airmen/civilians.
(d) Register of Hostel subsidy claims in respect of Airmen/Civilians NCs(E).
404-A. LAOs/ALAOs (AF) while auditing the register will see that:-
(i) The registers are maintained as per existing orders.
(ii) All the columns have been properly completed and cash accounts [Link] month are
quoted against each.
(iii) The registers have been reviewed by the ALAO periodically.
(iv) No alterations/erasures are made without the signatures of the Accountant Officer. An
annotation in token of having audited the registers will be made therein under the initials of
the Auditors/ALAO/LAO(AF).
[Link]-claims
Children Education Allowance and reimbursement of tuition fee which were hitherto payable
separately have been merged and henceforth will be known as Children Education Allowance
Scheme.

The reimbursement on a/c of CEA will be governed by provisions contained In Govt of India.,
Min of Personnel, Public Grievances and Pension (DOPT) No.12011/03/2008-Estt(Allowance)
dated 02/09/2008 and as amended from time to time.

405. Blank

PAYMENT OF HOSTEL SUBSIDY

406. Hostel Subsidy will be reimbursed upto the maximum limit of RS 3000/- per month per child
subject to maximum of two children. However, both Hostel Subsidy and CEA cannot be
availed concurrently. The claims on a/c of reimbursement of Hostel Subsidy will be regulated
by the provisions of GoI, DOPT OM No .12011/03/2008-Estt.(Allowances) dated 02/09/
2008 as amended from time to time.

CLAIMS ON ACCOUNT OF SUBSIDY FOR THE PURCHASE OF BOOKS

407. Book subsidy claims will be audited to see that:

(i) It is preferred on the prescribed form, and its correctness has been certified by the adjutant.
(ii) It is supported by a certified from the Headmaster/Principal of the school that admission of
the child/children in that school involves purchase of a new set of books costing not less
that the amount of the subsidy claimed and that children are not in receipt of scholarship
which also covers the expenses of books.
(iii) The pay of the claimant does not exceed Rs. 1600/- P.M.
NOTE:-[Link] pay for the purpose of subsidy will by the pay as defined in Pay & Allowance Register
IAF.

225
NOTE 2: In the case of officers/personnel under suspension or on leave, the pay will be the pay as
admissible to him at the time he was placed under suspension or proceeded on leave.
(iv) The following certificates are furnished on the claim:-
(a) That my wife/Husband is not in government service or may wife/husband is in government
service and she/he has not claimed the subsidy.
(b) That the child/children for whom subsidy is claimed is/are not in receipt of any scholarship
which also covers expenses for books.
(c) That the child/children for whom subsidy is claimed is/are legitimate/adopted/step/child/
children who is/are wholly depended upon me.
(v) The school to which the child is shifted on transfer is a school recognised by the govt.
(vi) The subsidy is restricted to 4 children.
(vii) The subsidy is not paid to those who are serving with mission abroad who are receiving
children education allowance.
(viii) The rates of subsidy claimed are correct with reference to the orders from time to time.

GENERAL

408. Super indent and LAOs should ensure that each type of claims is personally audited by them
with reference to basic regulations/government orders and clarifications issued thereon etc.
on a sample basis at least once a year. A record of the claims so checked by the LAO/ALAO
may be kept in a register in the following proforma. The register will be open to inspection
by
[Link]. Unit Name of the Type of the period to which
Individual claim the claim relates
1 2 3 4 5

Amount Whether checked Basic Regulations remarks Initial

by the LAO/ALAO and other LAO/
orders consulted ALAO
6 7 8 9 10

226
 CHAPTER XX
AUDIT OF N.C.C. UNITS
Topics Para

List of Accounts and Documents 409

General 410
Accounting Procedure 411
Special Points to be seen in Audit 412
(a) Gliders / Microlites
(b) Clothing
(c) Arms & Ammunition
(d) Rations
(e) Losses
Repair Book 414

LIST OF ACCOUNTS AND DOCUMENTS

409. The list of accounts and documents auditable is given in Appendix VI to this manual.

GENERAL

410. Circle Headquarters of National Cadet Corps are the Organisations of the Government of
India, Ministry of Defence, like other Army Formation Headquarters and, therefore, all
expenditure on them is borne by the Defence Services Estimates. On the other hand, NCC
Units are the organizations of the State Governments, as well as of the Central Government.
Accordingly, the expenditure on National Cadet Corps Units, is partly borne by the State
Government concerned and partly met out of the Defence Services Estimates. Air Sqns.
NCC will account for all stores other than Air Force Stores in the manner prescribed in the
pamphlet of NCC accounting procedure in respect of Defence Stores, whereas the common
user Air Force Stores will be accounted for in accordance with the procedure laid down in
IAP 1501. Air Sqn will be attached to the nearest Wing/Station for the provision of accounting
facilities. Where NCC Air Sqns. are located far away from Air Force Units such Sqns will be
specifically declared semi-self accounting in accordance with Chapter 16, IAP 1501.

ACCOUNTING PROCEDURE

411. A & B Class stores will be issued, accounted for on Flight or Section Inventory and A-in-U
Ledger by the accounting unit in the manner prescribed vide para 78 et-seq Chapter 12 IAP
1501. Class C stores (other than POL) required for training purposes will be issued free
under normal procedure.

227
NOTE-1 : POL will be supplied under respective State Government arrangement.

NOTE-2 : Responsibility for the supply and maintenance of common user vehicle devolves on the
Army Authorities.

NOTE-3 : Scales of unit equipment will be as notified in scale D-5/IAP 1503-D as amended from
time to time.

SPECIAL POINTS TO BE SEEN IN AUDIT

412. The accounts of only such stores the cost of which is met out of Defence Services Estimates
are subject to local Audit.

Following are some of the special features which should be kept in view during local audit in
addition to the normal procedures of equipment accounting laid down in earlier chapters.

(a) GLIDERS/MICROLITES:

(i) Holdings of gliders/microlites are within the scales laid down in the latest
Government orders. Where the holdings are more than authorized scales, the
surpluses have been reported to the Director General NCC for disposal. There
are no undue delays in their disposal.

(ii) The gliders are not kept grounded for want of minor repairs or due to any other
cause for long time.

(iii) Prompt action is taken for inspection/check calibration of instruments/components

by the nearest Air Force Wing or the Repair Agency as may be necessary.

(b) CLOTHING:

(i) The scale at which clothing is provided is in accordance with latest Government
orders (at present these orders are contained in Government of India Ministry of
Defence, No. 0065/59/NCC-Navy (Q)/2318/US/D (GS-III)/59 dated 26th
September, 1959 as amended from time to time). Reserves of clothing are within
the prescribed percentage, viz 20% over and above the authorized scale of clothing
and necessaries with the exception of units located in Andaman and Nicobar Islands
who will hold 40% reserve.

(ii) All issues of clothing are made against signatures of the individuals to whom the
issues are made.

(iii) To ensure that issues have been made only to those who are appointed/enrolled, it
will be seen in audit and that the issues are duly supported by nominal rolls of
NCC Officers and Cadets appointed/enrolled in the units furnished by the O.C.
Unit/Principal of the College etc., A list of all items issued to each individual is
prepared and signature of the recipient obtained.

228
NOTE :- Free issues of clothing and necessaries will not be made to Officers of the Sr. Division
who will themselves bear the charges for uniform from the clothing allowance paid to them.
(iv) The list of individuals to whom free issues of clothing are made is kept upto date as
and when further issues are made or items replaced.
(v) No replacement has been made of any item of clothing without the article being
condemned by the condemnation board which would certify the un-serviceability of
the articles.
(vi) All articles of clothing and necessaries are inspected periodically for their serviceability
and further use. If any item is lost through neglect of the user the amount due to be
recovered has been determined by the O.C. unit taking into consideration the cost of
replacement and the un-spent life of the article at the time of loss or damage.
(vii) Cadets are charged for losses of clothing where the loss is due to their neglect at full
or 2/3 of the current vocab prices notified from time to time, according as the items
lost were serviceable/serviceable partworn. The amount realized is deposited into
the treasury. A copy of the Treasury Receipt is received by the LAO to enable him to
conduct the verification of realization of amounts due.
(viii) On discharge of a Cadet, all items of clothing and necessaries issued to him are
withdrawn and accounted for.
(ix) Items of clothing reported un-serviceable are brought before the condemnation board
once in six months supported by a list of articles and the names of Officers/Cadets to
whom they were issued. Items found un-serviceable through fair, wear and tear by
the Board will be struck off ledger charge on a CIV citing reference to the findings of
the Board. Items found fit for further use will be repaired at the expense of Government
and taken into use again. Unserviceable articles of public clothing with exception of
cotton garments are not to be destroyed but are to be brought on charge by weight on
F (Q) 468 and disposed of to salvage. Buttons of Airforce type and badges are to be
removed before disposal and brought on charge it fit for reissue otherwise they are to
be destroyed. Unserviceable cotton garments are to be reduced to rags to meet
requirements of cleaning material.
(x) When garments to fit the over-sized cadets etc. are to be locally stitched within the
financial powers of the Director NCC., a nominal roll of over-sized Cadets/Jr. Division
Officers is maintained in a separate register indicating the body measurement of such
cadets etc. as well as details of cloth used. Any cloth left over is disposed off in the
best interests of the state.
(c) ARMS & AMMUNITION :
Arms and ammunition required by NCC Air Sqns, are demanded direct from the stock holding
depot and accounted for on separate Stock Record Cards form (Q) 468 in accordance with the
relevant provisions of Chapter 31, IAP 1501.
(d) RATIONS :
Free rations at the scale applicable to flight Cadets under AFI 3/S/61 as amended from time to

229
 time are issued to NCC Cadets during Training Camps, NCC Officers during such training Camps
are not entitled to free rations.
(e) LOSSES :
All losses will be subjected to a preliminary enquiry by the OC., of the unit. If this investigation
reveals that the loss is or may be due to theft, fraud or neglect, the case will be reported to
Formation HQ., with a request to convene a staff court of Inquiry. The procedure laid down in
rules 155 to 161 and 167 F.R. Part -I will be followed. GP HQ/NCC Dte will be kept informed.
Orders of the formation HQ or equivalent IAFF HQ will be carried out in respect of disciplinary
aspect and stoppage/recovery from person (s) held responsible. Disciplinary aspect will be dealt
with under orders of the Formation Headquarters. The powers to write off losses of stores in the
NCC by DG NCC and Directors NCC (State) are given in F.R. Part I.
These powers will not be exercised in respect of losses in their own offices. The DG NCC will
exercise the powers to write off losses due to theft fraud or neglect only in consultation with and
after obtaining concurrence of Ministry of Defence (Finance).
413. Whenever amenity transport is provided to AF personnel posted to NCC Sqs, it will be seen
that the following conditions are fulfilled -
(a) vehicles held on charge of NCC Units are used and most economical use of transport is
made.
(b) as far as possible the maximum number of persons avail of the same trip.
(c) use of vehicles for amenity purpose does not interfere with training schedule/Essential Admin
Services.
(d) in no case vehicles are driven by any person other than the authorized driver.
(e) not more than one trip per week subject to a maximum of 8 trips in a quarter are made.
(f) the distance limitations and sanction of competent authorities as stipulated in Government
orders are adhered to/obtained.
(g) the trips made are free of charge to Airmen (including W.O./MWOs) but the cost of POL is
reimbursed to the state Government at the current rates.
Amenity transport to service officers will be on payment in terms of AFI 13/75 as amended
from time to time. The hire charges realized from the officers will be credited to the relevant
Misc., receipt Head of Defence Services Estimates. The LAO will ensure that recovery has
been made correctly at the rates laid down in AFI and that the amounts due to Government on
this account have been promptly credited in the Government treasury through the units Public
Fund cash accounts. Acknowledgements for the TRs received from the CDA will be verified
in audit. POL will be supplied by the State Governments and the cost will be reimbursed to
the respective State Governments at current rates.

NOTE:- Separate duty slips will be maintained for vehicles given for amenity purposes to officers
and other service personnel. The duty slips are subject to check by the LAOs. The AG of the State
Government will raise debit against the Central Government for reimbursement of the cost of POL

230
for vehicles provided for amenity purposes in respect of officers/Airmen (including WOs/MWOs)
at current rates.

REPAIR BOOK

414. A repair book is maintained for all repair material issued. Expense Vrs., are raised monthly
for the full Qty., of stores used in the repair and cleaning. These Vrs., should bear the certificate
of a responsible officer that the quantities charged off in the ledger tally with those entered in
the repair book. The No. and date of voucher should be entered in the repair book. It will be
seen that balance of article, held in the expendible ledger are checked monthly with stocks in
addition to the Annual Stock Verification.

231
 CHAPTER XXI

AUDIT OF ACCOUNTS DEFENCE DEPARTMENTAL CANTEENS

Topics Para
General 415
Scope of audit 416
Periodicity of audit 417
Objection Statements 418
Quantum of audit 419

GENERAL

415. It has been decided by the Ministry of Defence in consultation with the Ministry of Defence
(Finance) that the Accounts of Defence Departmental canteens would be audited by internal
auditor in the first instance and there after ,accounts in respact of grant in aid sanctioned
from defence services estimates would be audited by the defence account department.

SCOPE OF AUDIT
416. Audit of Accounts of Defence Departmental Canteens attached to the defence formations/
Establishments will be carried out by LAOs on the basis of the following documents
(i) The hand book of administrative instructions on departmental canteens in Govt offices and
Industrial Establishment issued by the Deptt of personnel and Administrative reforms (The
book is also pupularly known as Green book)
(ii) Departmental Canteen employees (Recruitment and conditions of service rule
1980(Published as GSR 17.1.1981 in the Gazettee of India,Part II section 3 sub section (i).
(iii) Administrative instructions/Orders issued by the Agency of the Director of Canteens ,from
time to time.

417. PERIODICITY OF AUDIT

The Audit of DSE ,Grant in aid accounts of the departmental canteens will be carried out by
the LAOs an annual basis irrespective of the type of canteens commencing from the year
1984-85 based from on normal local audit and cash audit principles.

418. OBJECTION STATEMENT

Objection statment on the accounts of Departmental canteens will be rendered in the normal
manner to the managing committee and their finalisation watched.

QUANTUM OF AUDIT
419. One months transactions will be checked in detail and general scruinty incuding checking of
cesting exercised over the remaining period.

232
 APPENDIX I

PERCENTAGE OF AUDIT

(Referred to in para 9 Chapter I Air Force Local Audit Manual)

Sl Particulars in brief of the process Scope of Check Remarks

No. of audit
1 2 3 4
1 a) Casting ........................... 100%
(b) Closing Book Balances .................
(c) Opening Book Balances .................
2 Linking of:-
(a) Transfer outward i.e. Issue entries In the 16 ½%
tally cards into the relevant Issue
vouchers
(b) Pairing and scheduling of IAFF Q 429/ 100%
F. 501 etc. to the consignee LAOs for
linking
(c) Check of "noted for recovery" Copies 100%
of F.431 received from CDA (AF)
3 Linking of:- 33% pairing of copies of
(a) Transfer Inward (Receipts) Over Rs 50,000/ in vouchers received
(b) (i) Central purchase Vouchers value - 100% from consignor LAO/
(ii) Local Purch. vouchers Other Vrs - ALAO etc. should be
done first with the
33 1/3%
unit copies Ext.
Rs 20,000/ in value - receipt vouchers &
100% then the Credits
Other Vrs - linked in stock
16 ½ % Record cards etc. In
case of missing
voucher copies there
of obtain from the
consignor LAOs will
be linked 100% into
the Consignors
ledgers
(c) Overseas receipts
(a) Pairing of CRVs with copies of Air 100%
Min or other overseas vrs or
packing accounts
(b) Linking of receipts vrs into the 16 ½%
tally Cards

233
Sl Particulars in brief of the process Scope of Check Remarks
No. of audit
1 2 3 4
4 Audit of :- large Issue of articles
(a) Final receipts . 16 ½% in Demand in the
(b) Final Issues market are made. The
(i) Ord. issues (including losses issues to collective
Chargeable to the state & issues bodies, e.g. Officers
to salvage 16 ½% mess etc. will be
(ii) C.I. Vrs. & conversion Vrs selected. It will be
(iii) Payment issues seen in respect of
(a) Check of entitlement 16 ½% items selected for
(b) Check of quantities issued detailed check that
(c) Verification of credit to Govt 100% quantities issued are
(iv) Loss statement not chargeable to not in excess of those
the state 16 ½% authorized; a critical
(a) Check of quantities & CFA etc review from a higher
(b) Verification of credits to Govt 100% audit point of view of
(v) Verification of correctness of the necessity for the
pricing (payments issues & loss quantities issued will
statts) where Pricing is done by the also be made.
Accountant Officer or the
administrative authorities vide
paras 17-23 of Chapter 2 IAP 16 ½%
1501.
(vi) Check of maximum Esst, records
stock recorded cards with
reference to the past consumption.
(a) Check of maximum Esst,
records stock recorded cards with
reference to the past
(b) check of actual holding
(vii) Account copy of FQ 466 in respect
of airmen transferred to regular
Air Force Reserve
5 M.T runs and Flying Returns etcverification In respect of these
of credits 33 1/3% transactionwill how
(i) Runs of M.T on hir ever be carried out in
(ii) Payments Flights full,ie 100%
(iii) Other runs and Flights

234
Sl Particulars in brief of the process Scope of Check Remarks
No. of audit
1 2 3 4
6 Ration accounts :- In the case of Vrs
(a) verification of : castings centrally & locally
opening book balance 100% purchased stores,each
closing book balance voucher of Rs. 20000
(b) Linking of receipts:- in value will be
Transfer inward linked in full
Centrally purchased stores
Locally purchased stores. 33 1/3% All remaining
(c) Linking of Issue transaction should be
(d) Audit of :- scrutinised generally
(i) Final receipts 33 1/3% common sense point
(ii) Final issue of view to detect any
(iii) Check of entitlement of rashan 33 1/3% glaring or
(iv) Payment Issue 33 1/3% outstanding point
(a) Check of entitlement 100% which might attract
(b) Verification of credits an intelligent &
government experienced auditor's
(c) Check of quantities issued 33 1/3% attention without a
(d) Ration allowance of v a r i o u s 100% detailed and full
types CILQ/conservancy/ audit.
Water carrier A l l o w a n c e / 33 1/3%
conveyance allowance
(a) Check of entries in each 33 1/3% The items selected
individual Cards from PORs will be those where
(b) Check of the entitlements 33 1/3% large issue of articles
worked out In record cards for in demand in market
various allowance are made remarks at
(c) Check of the entries regarding 33 1/3% 4 (v)(iii) above apply
payment from voucher to the also.
record cards
7 CEA/Re -imbursement of Tuition fee Hostel
subsidy:-
(a) All initial claims 100%
(b) Claims for January& July 100%
(c) Claims for other months 33 1/3%

235
 Sl Particulars in brief of the process Scope of Check Remarks
No. of audit
1 2 3 4
NOTE 1:- LAOs (AF) during the course of local audit should critically examine the ration
accounts from higher points of view with a view to detect abuse or avoidable leakage
NOTE 2:- In addition all accounts should be subjected to a general scrutiny or broad and
intelligent lines to detect any obvious or recurring errors in accounting, irregularities and
extravagance in expenditure.
8 Railway Warrants .Military credit Notes 5% in detail& other 5% in detail& other
general Scrutiny general Scrutiny

NOTE: - In addition to the prescribed quantum of check in column(3) all accounts should be
subjected to a general scrutiny on broad and intelligent lines to detect any obvious or recurring ,
errors in accounting irregularities ,extravagance in expenditure etc.

236
 APPENDIX II

OBJECTION STATEMENT ISSUE AND SETTLEMENT OF

(Referred to in para 30 Chapter 1, A.F.L.A.M.)

( To be read in conjunction with AFO22/2000)

1. The objection Statement will be drawn up in parts as detailed below :-

Part I General
Part II Equipment ('A' Depot Equipment)
Part III Rations ('B' Unit equipment)
Part IV M.T.
Part V Armament
Part VI Aviation
Part VII Medical
Part VIII. Photo
Part IX Railway Warrants, Military Credit Notes etc.
Part X Equipment Accounts Section
Part XI Workshop
Part XII Miscellaneous
Part XIII(A) Local Allowance i.e. irregularities pertaining to the Orderly Room and relating
to incorrect/irregular Certification and authorization in PORs.
Part XIII(B) Local Allowances i.e. irregularities pertaining to Accounts Section relating
to erroneous calculations Payments etc.
Part XIII (C ) Children Education Allowance, Tuition Fee and Hostel Subsidy.

NOTE :- Each part will be independent and complete in itself, but serial numbering will be
continuous from Part I to the last part e.g. Pt.-I serial No. 1 to 10, Pt. II No. 11 to 30 etc.

2. As audit progress, verbal explanations on doubtful points and discrepancies will be obtained
by the Local Audit Staff from [Link]. I/C, Sections. Where satisfactory replies are not
forthcoming "Preliminary Observations" will be issued to the Section concerned. Replies to
these observations will be obtained as far as possible on the same day or the following day.
As soon as the audit of a particular Section is completed, all outstanding items on the
"Preliminary Observations" pertaining to that section will be discussed by the Group
Superintendent/LAO (AF) with the Section Officer ad efforts made to settle as many objections
as possible by discussion.

3. At stations where there is only a Group Superintendent, a conference will be arranged with
the Accountant Officer prior to the arrival of the Local Audit Officer at which the respective
Section Officers will also be present for further discussion of the items outstanding on the
"Preliminary Observations" slips on Sections in respect of which audit has been completed.

237
 Any items settled as a result of further explanation furnished by the Section Officer/Accountant
Officer will be deleted by the Group Superintendent from the "Preliminary Observations
List". The remaining observations will be incorporated by the Group Superintendent in a
draft objection statement for discussion during the visit of the Local Audit Officer. Any
Objections/Observations which the Accountant Officer/Section Commander considers can
be profitably discussed with the LAO during his visit will be discussed at the conference
with the LAO mentioned in the next para.

4. In respect of "Preliminary Observations" on Sections, the audit of which is completed after

the arrival of the Local Audit Officer, these will be similarly discussed at a conference between
the Local Audit Officer/Section Commander/Accountant Officer and the items settled as a
result of such discussion cleared from the "Preliminary Observations slips". The remaining
observations will similarly be incorporated in the draft objection statement as in the preciding
para.

5. The LAO (AF) will scrutinize the draft objection statement and also carry out a general and
intelligent review of the accounts to satisfy himself that :-

(i) All the prescribed accounts and documents have been maintained and duly checked by the
staff.
(ii) All the objections raised are fully descriptive supported by reference to relevant vouchers
under objection and the relevant rule or order, as appropriate, etc. He will initial on the
objection Statement. The LAO (AF) will also exercise his powers of write off and settle
objections, where appropriate. A record of objections, thus waived will be maintained by
the LAO in the objection statement which will be open to inspection by IDAS Officers.
6. During the visit of the Local Audit Officer, a date will be fixed with the Station Commander
for discussion of the draft objection statement at which the various Section Commanders
and the Accountant Officer will also be present. The objections discussed at this conference
will be categorized as under :-
(a) Objections settled at the spot after discussion. The basis on which the objections
have been settled will be briefly noted against each item and necessary certificate,
etc., required by the LAO will be furnished.
(b) Objections agreed to be settled subject to recovery from individuals/production of
vouchers/adjustment of over drawls etc.
(c) Cases of Losses which fall within the powers of the Commanding Officers of the
unit.
(d) Objections beyond the competency of the unit for the settlement.
The LAO (AF) will at the same time advise the C.O. of the "General State" of the various
accounts. He will obtain the initials of the C.O. and also of the Accountant Officer on the
draft objection statement as a token of the same having been discussed with them.

238
 7. Cases mentioned in Para 6(b) and (d) will be incorporated in the objection Statement by the
L.A.O. Two copies or the Objection Statement will be sent to the unit by the LAO (AF).
While forwarding the Objection Statement LAOs should indicate specifically in the
forwarding memo category wise break up of objections, clearly specifying as to the
significance of the categorization as such on the lines given below :-
CATEGORY 'A'(High Risk Areas) : All important cases of financial irregularities suspected
frauds, embezzlements and other cases of serious nature which merit special attention of higher
administrative authorities and are likely to find place in the report on Major financial and accounting
irregularities should be prominently brought out in this category of the objection statement.

NOTE :- Copies of important irregularities which merit attention of higher authorities will be sent to
the appropriate command Headquarters with a copy to the unit and the CDA (AF).
CATEGORY 'B'(Medium Risk Areas) : This category may include irregularities of relatively less
importance but which warrant a special note by the officer Commanding/Local Administrative Authorities.
CATEGORY 'C'(Medium/Low Risk Areas) : Other Objections.
CATEGORY 'D' (Low Risk Areas): Objections of technical nature/non-financial character bringing
out procedural lapses not involving loss to state may be grouped under this category.
A nil objection memo will, however, be sent to the unit by the LAO when no objection/observations
have been raised by him in the following format :
"Audit of the accounts of ………………………………(name of the accounts and unit/unit) has been
conducted for the period……………………………… and there are no objections/observations.
8. To facilitate review of objections not cleared within a reasonable period, a History Sheet will
be prepared, as per the proforma appended below, as soon as the objection becomes more
than six months old. Thereafter, the History Sheet must be kept up to date, incorporating all
the subsequent developments, so that it gives at a glance adequate information regarding
how the objection has been progressed, the level (viz. Unit/Command/Air Hqrs.) at which it
is outstanding etc. The History Sheets will be either pasted inside on the cover of the relevant
Objection Statement file, or, where more convenient, recorded in a separate file".

239
 HISTORY SHEET OF OBJECTIONS OUTSTANDING
FOR OVER 6 MONTHS

Period of Audit………………………….. Dates of Audit……………………………………..

Date of Issue of objection Finally settled on ………………………………

Statement……………………

9. AUDIT PROGRESS REGISTER : Details of progress of settlement of objections will also

be reflected in the Audit Progress Register which will serve the purpose of the specific record
showing the objections and their settlement. The format of the Audit Progress Register and
the Fly-leaf instructions pertaining to the same are reproduced at the end of this Annexure.

10. In order to ensure that Objections regarding the serious irregularities/suspected cases of fraud
and embezzlement are not lost sight of, the Objections should be judiciously edited to bring
out the seriousness of irregularities.

Objections and Observations arising out of audit should be written up in ink concurrently
with the progress of audit so that they may be recorded at a time when they can be most
clearly and readily stated. The nature of the items objected to and the reasons for objecting
to the expenditure will be briefly described, but the objection should as far as possible be
fully descriptive so as to obviate the necessity for any further reference to the vouchers or
accounts concerned. It is not sufficient to quote the rule or the orders violated ; the actual or
possible effect of the deviation on the financial interest of the Govt. should also be explained
intelligently.

11. It will be seen by the LAO that all the objections and observations, contained in the objection
statement are well grounded on facts, at once convincing and indisputable, all the directives
given reflect the true intentions of the rules and are lucidly agreeably worded. The acid test
of a sound objection statement lies in the fact that the accounting party has accepted in its
entirely; that no mistakes in the accounts or an inherent inefficiency of the system has gone
undetected; that it brings forth the true state of accounts, spotting the unhealthy parts therein
and suggesting a correct remedy therefore. In short, it will be ensured by him that the
observations are not written merely for the sake of observations and with a view to score and
that the objection statement is not unnecessarily made a tremendous recipe of any superfluities
but contains a thread bare exposition of only the real irregularities in the accounts.

240
12. The items are to be classified and exhibited as under :
(1) Objections.
(2) Observations.
13. As a general guide, the following types of irregularities should be classified as objections
and money value involved wherever ascertainable/assignable, should be given :-

(a) Unauthorised free issue of stores.

(b) Stores issued in excess of prescribed scales.

(c) Stores issued on payment or losses chargeable to individuals for which credits are not afforded
in the account.
(d) Cases of under-recoveries due to incorrect pricing, etc.
(e) Want of receipted copies of issue vouchers from the consignee units.
(f) Non-maintenance/Improper Maintenance of auditable documents.
(g) Non-production of auditable documents.
(h) Loss of audited documents.
(i) Unauthorised use of Govt. transport.
(j) Irregular use of Railway Warrants/credit notes etc.
NOTE 1 :- For the purpose of the CGDA's monthly progress reports, only those items which are
classified as "Objections and such of the items under Audit Observations" (see infra) as disclose
unsatisfactory features and need further action, are to be shown as outstanding.
NOTE 2 :- Under para 705 of O.M. Pt. II (Vol-I), money value of individual objections is to be
indicated wherever possible against each objection. The collective of objections included in objection
statement is also required to be shown in the Audit Progress Register. The collective value of outstanding
objections, pertaining to each year from 70-71 onwards will also be shown at the foot of the statement
showing the yearwise break-up of the outstanding objections being submitted to the C.G.D.A. quarterly
along with the Monthly Progress Report. The No. of objections which could not be priced should be
separately indicated in the reports.
14. Instructions, enquiries, etc. of the following nature or on the following subjects will be
classified as observations. They will be entered after the objections and will be recorded
separately under the heading "Audit Observations". Money values involved need not be
entered in the case of these "Observations":-
(a) A simple direction for further guidance or a call for a document the absence of which is not
likely to affect the admissibility of a charge.
(b) Delays in the submission of accounts and returns.
(c) Fictitious adjustment and manipulations in accounts unless actual loss has occurred.
(d) Deviations from rules which are indicative of a disregard of evation of rules but do not
result in charges being incurred with proper sanction.

241
 (e) Errors in accounts, vouchers, etc. which do not indicate any deficiencies or surpluses.
(f) Instructions and other remarks regarding the form of accounts, etc.
(g) Demands for information not received.
(h) Enquiries and remarks in respect of doubtful points.
(i) Remarks calling attention to minor errors of procedure.
(j) Want of vouchers.
If as a result of observations, any unusual or doubtful feature regarding an item is brought to light
or the information or document considered essential for admitting an item finally in audit is not
forthcoming, such an item should then be treated as an objection and thereafter dealt with
accordingly. Similarly, "Office Notes" remaining unsettled until the next audit visit should be
embodied in the objection statement as objections or observations, as the case maybe. They should
in nocase be left as "Office Notes" thereafter.

15. Great care and tact should be exercised in the wording of the objections and in the subsequent
correspondence with the executive and administrative authorities. Objections and
Observations should be couched in language which is courteous and impersonal so that no
offence may be taken. The objections should be closely scrutinized by the Group
Superintendent and the LAO (AF). Objections involving trifling amounts will be written off
by the LAO under his financial powers, wherever appropriate, having due regard to the fact
that they are not frequently recurring.

NOTE :- S.O. (A) are empowered to settle audit objections waived by there under the delegated
powers in terms of Rule 177 (i), (ii) &(iii) FR Part I as also other objections of routine nature such
as :-

(a) Non-verification of credit of Stores.

(b) Awaited receipted copies of vouchers,

(c) Overdrawal of rations,

(d) Non-production of PORs. Vouchers/documents etc., bases on verification of factual data.
While settling the objections of above nature, the SO(A)should be personally satisfied that
the point of objection has been suitably answered and audit requirement has been fully
completed and there is no defect on lacuna in the system and procedure. He will record the
reasons for settlement of an item in the office copy of the settlement memo. However,
objections personally raised by the LAOs may also specifically take out any particular
objection/observation in a Unit/Formation out of SOs(A) jurisdiction, if considered necessary.
16. When an objection once raised has been withdrawn (after the dispatch of the objection
statement) either on reconsideration or in the light of information which was not available
previously, the C.O. to whom the objection statement was originally addressed should be
informed forthwith, either separately or through the re-audit decision.

242
17. No objection or audit observation will be considered to have been finally settled unless it has
been adjusted, satisfactorily explained, or specifically withdrawn.

18. The office copies of the finally settled objection statements together with the Local Audit
Officer's or Group Superintendent's Notes Objections settled on the spot and the linked
vouchers will be recorded separately in different jackets.

19. The office copies of the finally settled objection statements over a year old and all records
beyond the immediate needs of the LAOs/Group Superintendents should be listed out in a
register of records (IAF-(CDA)244) and kept in safe custody. On the expiry of period of
retention these would be disposed of in accordance with the provisions of paras 485 O.M. Pt.
I (1952).

243
 AUDIT PR OGRESS REGISTER
PROGRESS
Name of Unit / Formation ……………………………………………………………..

Sl. Period of Total Total No OUTSTANDING OF

No. audit/ No. of No. of
date of Objn. Objn. Ist Jan. Ist Feb. Ist March
issue of
Objn. Obj. Obs. Obj. Obs. Obj. Obs.
Statt

1 2 3 4 5 6 7

No OUTSTANDING OF

Ist Apr. Ist May Ist June Ist July Ist August Ist Sept

Obj. Obs. Obj. Obs. Obj. Obs. Obj. Obs. Obj. Obs. Obj. Obs.

8 9 10 11 12 13

NOTE : Col. 21 may be made use for the conversion of observation into Objection.

244
FLYLEAF INSTRUCTIONS FOR AUDIT PROGRESS REGSITER

1. Col. 1, 2, 3, 4 and the concerned column from 5 to 16 will be completed simultaneously with
the issue of Objection Statement.

2. Figures in Col. 5 to 16 will be obtained every month from the auditor concerned duly
authenticated by the ALAO and entered in the relevant column.

3. Col. 17 to 20 will be filled in when the settlement memo is issued.

4. Note more than four objection statements will be recorded on each page (sufficient space to
be left between each such entry to ensure its progress being recorded right upto its final
settlement). The entries showing progress in the next year will start in the next line after
columns upto Dec. have been used up in the proceeding line.

5. The first few pages will be used for keeping index of units. The index will also show file No.
dealing with Objections entered on the relevant page.

6. The register will be submitted to LAO/ O i/c by the 10th of each month.

245
 APPENDIX III

(Referred to in Para 17 of A.F. Local Audit Manual)

PROGRAMME OF LOCAL AUDIT IN RESPECT OF UNITS/FORMATIONS LOCTED

IN THE ATEA OF LOCAL AUDIT OFFICER AIR FORCE FOR THE QUARTER
ENDING …………………..
Sl. Name of Period upto Period of accts Mandays proposed Dates proposed for
No. Local of which accts now proposed for
units of were last to be audited/
formations audited/ reviewed
reviewed
Audit Review Audit Review Audit Review Audit Review
ALAO LAO ALAO LAO
1 2 3 4 5 6 7 8 9 10 11 12

Audit party Dates of transit to Dates on Details of Remarks

consisting of outstation for which the holidays
Auditor ALAO Audit ALAO LAO LAO and
Party proposes Sundays
to work in
his office
13 14 15 16 17 18 19 20

AUDIT PARTY
LAO

REMARKS : Mandays available in the Quarter.

Mandays proposed to be utilized on audit / review
Mandays proposed to be utilized on office.
Mandays proposed for transit.
………….………….
TOTAL
246
NOTE :- (a) Self Accounting Unit to be shown in each case together with all Ledger.
(b) All columns should be completed or appropriate remarks given for non-completion.
(c) If review is carried out by an officer other than the LAO his name should be
mentioned in remarks columns.

247
 APPENDIX IV

(Referred to in Para 17 of A.F. Local Audit Manual)

PROGRAMME OF LOCAL AUDIT IN RESPECT OF UNITS/FORMATIONS LOCTED

IN THE ATEA OF LOCAL AUDIT OFFICER AIR FORCE FOR THE QUARTER
ENDING …………………..
Sl. Name of Period upto Period of Mandays proposed for Dates proposed for
No. Local of which accts a ccts now
units of were last proposed to be
formations audited/ audited/
reviewed reviewed
Audit Review Audit Review Audit TC Review Audit TC Review
ALAO. LAO ALAO LAO
1 2 3 4 5 6 7 8 9 10 11 12

Audit party Dates of transit to Dates on Details of Remarks

consisting of outstation for which the holidays
Auditor ALAO Audit ALAO LAO LAO and
Party proposes Sundays
to work in
his office
13 14 15 16 17 18 19 20

AUDIT PARTY
LAO

REMARKS : Mandays available in the Quarter.

Mandays proposed to be utilized on audit / review
Mandays proposed to be utilized on office.
Mandays proposed for transit.
………….………….
TOTAL
248
NOTE :- (a) Self Accounting Unit to be shown in each case together with all Ledger.
(b) All columns should be completed or appropriate remarks given for non-completion.
(c) If review is carried out by an officer other than the LAO his name should be
mentioned in remarks columns.

249
 SELECTION OF VOUCHERS FOR LINKING AUDIT ETC

ANNEXURE I to APPENDIX IV

A - RECEIPT VOUCHERS

Typical possible methods of selecting 16 ½% of "Blue copies of vouchers for test linking into
consignee's ledger and returns.

Note 1 :- In this Appendix shedule means IAFZ 2014 or any other suitable form in manuscript.

Note 2 :- 3rd copy (Blue) and 4th copy (Blue) of vouchers (f.429) are described in chapter IV of
this mannual.

(1) Select every sixth voucher on each shedule commencing from sereial No.1 or 2 or 3 or 4 or 5
or 6.

(2) Select every alternate voucher commencing from any specified serial No of each shedule till
you get the required number viz 1/6th of the total No of items in the schedule ,if necessray (to
get1/6th of the total) or reaching the end of the schedule , restart the beginning

(3) Select the required No. (1/6th of the total) by taking all consecutive NOs commencing from
a specified serial no of the schedule (and recommencing at the beganning again , if necessary
to complete the total No. required)

(4) Select the 1st 2 (or 3 or 4 or 5 ) items omit the next 2 (or 3 or 4 or 5 ) and so on till you get the
required number.

(5) Select the first 2 (or 3 ) omit the next 4 (or 6) then take the next 2 or 3 and so on.

(6) Select the 8 1/4 percent of the total No of vouchers according to method No.1 above and the
remaining 8 1/4 percent according to method 2 above etc.

(7) As an exception to general rule in the case of multiline F.429 containing a large No of items
one third of the items on each voucher may be selected at the discretion of LAO for "test
linking" keeping in view the nature of stores.

B - ISSUE ENTRIES

The following method of selecting 6 ½% of the entries in the stock record cards for test linking
into the 3rd "Blue" copies of I.A.F.F (Q) 429 will be adopted.

(i) Accounts selected for detailed audit-A complete audit of all issue transaction for one month
in a half year will be carried out by the auditor and an intelligent scruinty of the other five
month's account by the LAO and superintendent where the accounts are normally audited on
half yearly basis . When the accounts the period of detailed audit should be proportionately
chosen.

250
(ii) Scrutiny of accounts not selected for detailed audit - while scrutinising the accounts ,particular
consideration should be paid to the defects brought to light in detailed audit if they are likely
to have repercussion in other month's accounts. The scrutiny should however ,as far as possible
include a comparison of the total issues in the various months and where wide fluctuations in
the issues are disclosed by such comparison, investigation should be ensure that the variations
are satisfactorily accounted for.

(iii) With a view to securing greater degree or surprise the selection of the month for full audit
should be arbitrary and the same month should not be selected for all the different accounts
.In other words ,different months should be selected for different types of accounts such as
Rations,Equipment,etc,so that the element of surprise is enhanced.

(iv) The selection reffered to above will be made personally by the LAO and in the case of
stationary Local audit staff based at outstations the selections order will be communicated to
the group Superintendent in a sealed cover.

Note:- In the case of issues the test linking must in effect proceed from the single stock record etc
to the voucher and not vice- versa

C - GENERAL NOTES
NOTES

The selection should be made personally by the LAO and communicated confidentially to the
group Superintendent immediately prior to the commencement of the audit . A precise record of
the particulars items of accounts selected and the method adopted for their audit and test check
will be kept enable any independent authority ( like test audit) to identify and review every item
selected by the Defence Account Department . If at the time local audit is due to commence the
LAO is always from the stations, he should intimate his selection by post to the group superintendent
in time to reach him the take before the commencing day of the audit. The group superintendent
should keep these orders confidentially in his personnel custody and not communicate them to any
one, until the local audit is actually taken up.

In selecting portions of accounts for full audit .The selection should be completely free and arbitrary
so that the store keepers, can not in any way forecast or calculate beforehand which particulars
portions are likely to be selected for full audit, LAO should be particular careful if when they have
selected the portions the excuse is made that the particular month selected is not quite ready and
some other months accounts is suggested instead.

Annexure 2 to Appendix IV method of selection of 33 1/3 % 16 ½ %of Final receipts and Final
Issue transactions to be audited in full

Apply any suitable or convenient method (e.g. select):-

(i) Number of items in each month's account or

(ii) One month's accounts out of six, or

(iii) One ledger account out of six.

251
 ANNEXURE 3 TO APPENDIX IV

In the case of Diet of Returns of hospital examine in detail in the month the accounts of
which are audited in full.

(a) Entries in Ward Diet Sheets (I.A.F.M 1282) for three days (selected at random) in the accounts
of the month audited in detail will be checked to see that (i) The totals are arithmetically
correctly, (ii) The extras prescribed by the M.O in charge are not in excess of the authorised
scales and (iii) The totals of the different diets and Extras have been correctly carried over to
the daily ward requisitions for Diets and Extras (I.A..F.M 1205) and (1205-A)

(b) Daily ward for 40 days selected at random in the following respects:-

(i) Casting in daily ward requisitions.

(ii) Postings from daily ward requisitions into daily requisitions and receipt for Diets and extras.

(iii) Casting in daily requisitions into daily requisitions and receipt for Diets and extras.

(iv) Posting from daily requisitions and receipt for Diets and extra into monthly summaries of
Diets and monthly summaries of Extras.

(c) Finally a cent percent check over the casting in the monthly summaries of Diets and in the
monthly summaries of Extras should be carried out.

252
 APPENDIX V

(Referred to in para 38)

QUARTERLY PROGRESS REPORTS SHOWING UNITS AND FORMATIONS WHOSE

STORE ACCOUNTS WERE AUDITED/REVIEWED DURING THE QUARTER
Sl. Name of Period of Period of Date of visit Actual date Name of Voucher Remarks
No. Unit with Accts Accts. as per of visit Officer & No. load for
No. of covered Covered by approved of Clerks the last
Mandays during last current visit programme employed month
authorised visit for of the
& actually quarter
utilized audited
Audit Review Audit Review Audit Revie Audit Review Officer ALAO Clerks
by w by by by
Staff LAO Staff LAO
1 2 3 4 5 6 7 8 9 10 11 12 13 14

Sl. Name Period of Date of Date of State of No. & date of Remarks
No. of Unit Accounts completion despatch Accounts despatch of
covered by of Objns. special report
current visit statement on the
Audit Review Audit Review irregularities
by by if accounts
staff LAO are
unsatisfactory
1 2 3 4 5 6 7 8

253
 APPENDIX VI

(Referred to in note below para 41)

LIST OF ACCOUNTS , SUBSIDARY DOCCUMENTS AND ANCILARY RECORDS

MAINTAINED BY A.F. UNITS AND FORMATIONS WHICH ARE TO BE
AUDITED OR SEEN IN COURSE OF LOCAL AUDIT

254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
 APPENDIX - VII

(Referred to in para 42 of Chapter -I)

ANNEXURE-I

LIST OF REPORTS AND RETURNS DUE FROM LAOs(AF) TO CDA(AF)

Sl. No. Particulars of Reports and Returns When due

MONTHLY

1. Progress Report - C.G.D.A. To be dispatched on last working day

of the month to which the report relates.
2. Certificate of Review of orders 14th of every month.

3. Leave statement : Establishment 10th of every month.

4. Strength statement : Establishment 4th of every month.

QUARTERLY

1. Programme of Local Audit 20th of Feb, May, Aug & Nov.

2. Financial Advice 25th March, June, Sep & Dec .

3. Return of Important Store losses for 15th Jan, 30th Apr, 15th July,
Publication in Appropriation Accounts. and 15th Oct.

4. Return of Important cash losses for - Do

Publication in Appropriation Accounts
Defence Services.

5. Report on Arrears in Local Audit. 20th Jan , Apr , July & Oct.

6. Supply of Store to Joint Cipher Bureau. 10th Jan , Apr , July & Oct.

7. Report on disposal of surplus office - 05th Jan, Apr, July &Oct.

furniture Equipment

8. Indent of Stationery. 01st Jan , Apr , July & Oct.

9. Progress Report on A.A.C. 10th Oct , 10th Jan ,20th Apr &
10th Jul.

10. Report on Major financial and accounting - 5th Jan, Apr, Jul, Oct
irregularities

HALF YEARLY

1. Statement of unlinked I.S.D. invoice. 20th Mar & Oct.

269
2. Statement showing the outstanding cases 30th June & 31st Dec.
in respect of which Punching Medium is
awaited from the consignee Cs.D.A.

3. List of dead stock articles held on charge. - 10th Jan & 15th July

YEARLY

1. Annual Audit Certificate 20th July.

2. Security Documents 10th Jan.

3. Contracts - Scrutiny of 01st July.

4. Books of Regulations -Amendments etc. 31st March.

5. List of Books of Regulations etc. held on charge. 31st Dec.

6. Indent for Forms . 01st Jun each year.

7. Return of Immovable property. 01st Feb.

8. Return of Store losses for Publication in 30th Apr.

Appropriation Accounts.

9. Return of cash losses for Publication in 30th Apr.

Appropriation Accounts Defence Services.

10 . Appropriation Accounts Defence Services - 15th Nov.

Statement of losses / irregularities relating to
pre- partition period .

QUINQUENNIAL

1. Return of Immovable property by class Due in 1971,

III & IV Employees. 1976, 1981 etc.

270
 ANNEXURE II

LIST OF REGISTERS ETC. TO BE MAINTAINED BY THE

LAO INCLUDING ALAO(AF)
REGISTERS
(1) Attendance Register.
(2) Leave Register.
(3) Register of initials of AAOs/SOs(A) /Auditors/Clerks.
(4) Cash Book
(5) Contingent Register.
(6) Register of Stock of Stationery.
(7) Inward Diary Register.
(8) Register of Secret & confidential documents.
(9) Register of Dead Stock Articles .
(10) Register of Identity passes.
(11) Register of Files .
(12) Instructional Order Book .
(13) Audit Progress Register .
(14) Register of Stores Losses which are required to be published in the Appropriation Accounts
of the Defence Services [ IAF (CDA) - 341].
(15) Register of Cash Losses which are required to be published in the Appropriation Accounts
of the Defence Services [ IAF (CDA) - 182 ].
(16) Register of Review of order .
(17) MASTER NOTE BOOK .
(18) Despatch Register with Postage Account .
(19) Register showing the details of objections waived by the LAO .
(20) Scheduling Register .
(21) Register listing items of Financial advice .
(22) Register showing items for including in AAC.
(23) Register of Sanctions.
(24) Register of Control numbers of registers .
(25) Register of addresses .
(26) Register of Service particulars .
(27) Register of Reminders .

LISTS
(1) 1 . Detailed List of Accounts ,etc. of each A.F. Unit / Formation to be audited .
(2) 2 . List of Books of Regulations on charge .
(3) 3 . List of Reports & Returns "Due in" & " Due out ".
(4) 4. Visual chart for watching progress of Local Audit .

271
 ANNEXURE - III

LIST OF BOOKS OF REGULATIONS ORDINARILY REQUIRED FOR USE BY

LAOs(AF) / ALAOs(AF) IN CONNECTION WITH LOCAL AUDIT WORK .

1. Financial Regulations Pt.-I .

2. Financial Regulations Pt.-II .

3. Travel Regulations .

4. I.A.P. 1501 .

5. I.A.P. 1503 - Part 'A' 'B' 'C' & 'D' .

6. Scales of Rations & Supplies issued by ASC (SRS) .

7. Medical Equipment General Instructions .

8. Priced Vocabularies of [Link].

9. Stock book Rate List of Centrally Purchased articles of ASC Supply.

10. Stores Accounting Instructions .

11. A.F. Local Audit Manual .

12. Army Local Audit Manual Pt.-I .

13. D.A.D.O.M. Pt.-I .

14. Defence Audit Code .

15. OM Pt.-II Vol. I & Vol.- II .

16. Defence Account Code .

17. [Link].

18. [Link].

19. Air HQrs Equipment Accounting Instructions .

20. Air HQrs Cash & Pay Accounting Notes.

21. Air HQrs Administrative Instructions .

22. Air HQrs Organisation Memoranda .

23. Medical Service Regulations .

NOTE - The above list is not exhaustive and may be increased / decreased by the PCDA(AF)/
CDA(FA)according to actual requirement .

272
 APPENDIX VIII

(Referred to in Para 48 Chapter -I)

AUDIT OF EQUIPMENT ACCOUNTS -ANALYSIS OF VOUCHERS

(a) Proforma for analysis of internal Issue vouchers

Class of vouchers Internal issues.
Period of audit Ist April to 30thSept.
Block of vouchers taken up for audit From INT/1 to INT /1005
(Total number of vouchers -1005)
Block of vouchers taken up for detailed audit From 401 775 (total number of
vouchers for one month audited-375).

NOTE:- the categories of vouchers as shown in the first seven columns of the Proforma are usually the vouchers of
very outstanding importance falling under internal issue series which call for extra care in bear checking in audit. The
serial number of these vouchers should invariably be recorded individually to save confusion and to facilitate their
sifting out and collection from the relevant voucher files at the time of further audit. All other types of vouchers
(excepting the missing vouchers, the serial number of which should be recorded individually) may be indicated in
total number only in order to save time and labour.

273
(b) Proforma for analysis of external issue vouchers.

Class of vouchers External issues.

Period of audit Ist April to 30thSept.
Block of vouchers taken for audit From EXT/1 to EXT/700- Total [Link] Vrs. -700
Block of vouchers taken up for 501 TO 700-Ttoal No. of vouchers for one month
detailed audit audited -200
Vouchers for stores Vouchers for stroes Free issues to CNTU/ C.I.V. Loan Issues to Missing Remarks
issued on payment to issued to Army, Navy, internal CNI issues IAF Vrs. , i.e.
other departments MES fore which services IAFF Vrs. Not
(other than army, interservice s adjustment organizations (Q)429 produced
Navy, MES & Foreign is necessary e.g. Joint for audit
Govt. etc.(IAFF (Q)431) IAFF (Q)431 services wing
etc.
EXT/IV/606.611,687 EXT/IV/502,515,581 etc EXT/IV/98,104, EXT/IV/ 20 EXT/IV EXT/IV/ Total 511 EXT/IV/9,11Total No. of vrs. Produced for audit 658 total no. of
etc. 305, etc. 5,287, etc /552, etc 372,etc 2,115 etc. vouchers not produced for audit and included in the
Total 42 objections statement 42

Total No. of Vrs. Scheduled to c onsignee.

Lao’s Army -100
LAO’s - 511
611
Total No. of vrs. Pertaining to the previous period
now produced during the period under audit –20.

NOTE: -1. Inregard to Vrs. Following under category given in column 1 of the Proforma, it will be seen that the
receipted issue copies of Vrs. Have been passed on to the CDA (AF) /Air Hqrs. & his acknowledgement obtained and
recorded. Take a note in the Preliminary observation list of the Vrs. either not send to the CDA(AF) or send but
acknowledgement for which has not been recorded in unit.

NOTE-2. Vouchers falling under category shown in column 1 of the Proforma will be included in the schedule of
payment issue (vide Proforma given below) soon after completion of audit in the case of consuming unit (in the case
of E.D. this will be done monthly).

For the month of

Statement showing No. & date of repayment issue Vrs. ----------------------------
Half year ending.
Name of unit.

Note:-3. Note the Vrs. not produced, in detail, in the preliminary list of observations.

274
(e) Proforma for analysis of conversion vouchers.

Class of vouchers Conversion vouchers

Period of audit 1st April to 30thSept.

Block of vouchers taken up for audit From CV/1 to CV/20 total

No. of Vrs. -20 total No. of Vrs.
for the last one month of audited 11

(f) Proforma for analysis of A and I note series vouchers.

Class of vouchers A & I note series vouchers

Period of audit 1st April to 30thSept.
Block of vouchers taken up for audit From A & I 1/1 to A 7 I 1/12.

Total No. of Vrs. for the last one month audited .

NOTE: No classification of the vouchers is necessary as the vouchers are audited by the PCDA (AF)/CDA(AF)
and paid vouchers are received from him for linking. Further all these vouchers are recorded in details in A &
I note register maintained with reference to Para 8 Chapter 9 IAF 1509 on which necessary audit check is
conducted.

276
 APPENDIX IX

(Referred to in para 125 of chapter IV of this manual)

STATEMENT OF LOSSES (STORE AND CASH ) OVER ISSUES OF STORES FOR

PUBLICATION IN THE APPROPRIATION

ACCOUNTS (REEFFERED TO IN PARA-AIR FORCE LOCAL AUDIT MANUAL)

1. For the preparation of statement of losses over issues of stores for publication in the
appropriation accounts, LAO's (AF) will maintain statistics in respect of losses of stores in a
register (IAF (CDA) 341).All losses of stores in Equipment Depots (including ASP's and
those of Rs 500 and over in value in consuming units (which have actually been written off
by the competent financial authority) during the accounts covered by audit will be noted by
the local audit staff in this register. Notes of all important losse3s as well as of the remedial
measures taken to prevent a recurrence thereof will also be kept in the register for inclusion
in the statement of losses. The LAO (AF ) and SO (A) will test check entries in the register
from the original sanctioned loss statements. Losses relating to thefts and frauds etc. will
also be shown in "IAF (CDA )-341.

LAO's (AF) will also maintain similar statistics of losses of Cash in respect of cases coming
within the preview of the audit in a register IAF (CDA) [Link] losses of cash exceeding Rs
50 in each case which have already been written off by the competent financial authority will
be noted in this register by local audit staff at the time of audit .Sanction, received in respect
of cash losses on account of demurrage charges will also be noted in this register.

NOTE :- Where penal deduction have been ordered for recovery the net amount of losses will be
noted for exhibition in the appropriation accounts- Defence Services except in the case of; losses
due to MT accidents where the total amount of loss will be noted for exhibition without taking into
account the penal deduction, if any.

2. The following categories of losses are not, however, to be included in the register as they do
not find a place in the statement of losses.
(A) Losses occasioned directly by active operations and enemy action.
(B) Objections waived or written off by officers of Defence Accounts Department under rule
177 FR Part-I.
(C) Losses of Aircraft on account of accidents due to incidence of service. Details of complete
aero engine and air frames struck off charge will, however, be indicated in annexure D. Full
details of such aero engines and air frames will also be furnished separately.
3. From the register of losses both stores and cash LAO's (AF) will complete and submit a
statement yearly on due date in respect of losses actually written off during the financial year.
The proforma on which the statement will be submitted are indicated as a Annexure "A" and
"B" to this appendix. Details of all important losses will be compiled from the register and
furnished quarterly on due dates in the proforma in annexure B. Each item figuring in the

277
 statement of important losses would contain a reference to the particular heading and category
in the consolidated statement to be rendered yearly where it is included e.g. Head I -Food,
Head II (a) POL etc, in respect of store losses, Head I loss of cash proper, overpayments or
irrecoverable claims etc., due to theft, fraud or neglect and Head II Loss of cash proper
overpayment or irrecoverable claims etc. due to other causes. The definition of important
loss for this purpose is as under:-

Store losses :- I- Losses due to theft and fraud or neglect exceeding Rs.75,000/- in case.

II-Losses due to other causes exceeding Rs.2,00,000/- in each case.

CASH LOSSES :- I-Losses due to theft fraud and neglect exceeding Rs.25,000/- in each
cases.

II- Losses due to other causes exceeding Rs.50,000/- in each case.

NOTE :- 1. Losses whose monetary value can not be assessed are also to be categorized under
head I or II as appropriate.

NOTE :- 2. Losses not included in the statement relating to a particular quarter should be
incorporated separately in supplementary statement for next quarter.

NOTE :- 3. Losses of cash due to enemy action are to be regularized under normal rules in FR
Part-I and such losses when regularized will be included in the main body of statement of cash
losses. Cash losses due to enemy action awaiting regularization by Government of India will be
included in the proforma at annexure "I" to chapter 18 Defence Audit Code (1954 Edition) for
incorporation in the reservations of the CGDA's Certificate.

4. Extracts of the annotation actually made in the two cases of losses are also to be sent in the
statements attached to annexure A to this appendix.

In the case of losses pertaining to aviation stores, miscellaneous stores under head I and II
complete details will be furnished separately in duplicate together with annual report in the
proforma at annexure C.

5. The following general instructions are to be3 observed in compiling the statement of losses
in case of consuming units /Equipment Depots:-
(a) In order to secure uniformity with a view to facilitating consolidation of statement by the
CDA (AF) the statement is to be prepared strictly in the form and manner prescribed.
(b) The total figure for each category of loss is to be rounded off to the nearest Rs while showing
in the statement under the relevant category of loss.
(c) for the purpose inclusion of losses in this statement, each sanction by a Competent Financial
Authority is to be viewed as an individual transaction irrespective of the number of
transactions involved in it. And the period covered by the transaction.

278
 (d) the losses in stores in unit equipment section of a stock holding depot will not be treated as
losses in equipment depot but will viewed as losses in consuming units and dealt with
accordingly.
6. In respect of losses and other irregularity relating to pre partition period finally dealt with
during the year, a report will be rendered by LAO's (AF) , GSLA (AF) to the CDA (AF)
Dehradun by 5 th November each year to enable him to render a consolidated report to the
CGDA ,New Delhi.

279
 APPENDIX ‘A’

(To Appendix IX)

Statement Showing by various Categories the total amount of Stores Losses Pertaining to the
Defence Services Dealt with Finally during the Quarter ending……………………

I. Actual losses due to theft, fraud or neglect.

II. Actual losses due to other causes.

( a ) Fire

( b ) Deficiencies in actual balance.

( c ) Deterioration.

( d )Defective Storage

( e ) In transit

( f ) Miscellaneous causes.

Total II

GRAND TOTAL I & II

NOTE :- Details of losses exceeding (i) Rs.75,000/- due to theft/fraud or neglect and (ii)
Rs.2,00,000/- due to other causes in each case, are given in the attached statement.

280
 STATEMENT ATT
STA ACHED TO ANNEXURE 'A'
TTA

SHOWING DETAILS OF LOSSES EXCEEDING

(i) Rs.75,000/- due to theft, fraud or neglect,

(ii) Rs.2,00,000/- due to other causes.

Sl Particulars & nature of Losses written off Amount

No.

281
 ANNEXURE 'B'

STATEMENT SHOWING PARTICULARS OF IMPORTANT LOSSES

Sl Name of the Particulars Exact Amount Exact & Recommen Particulars Remedial No. & date of Other
No. Unit/Formatio of Loss period detailed dation of of measures the loss Remarks,
n in which loss to which circum- the Court disciplinary instituted or statement or if any.
accrued the loss stances of Inquiry action taken proposed Govt. of India
pertains of loss to be letter under
instituted which
regularized
1 2 3 4 5 6 7 8 9 10 11

282
 ANNEXURE 'C'

DETAILS OF LOSSES OF AVIATION STORES/[Link] UNDER HEAD I & II .

HEAD I

Name of Unit Loss [Link]. Amount Remarks

HEAD II Under separate heads viz., fire/deficiencies in actual balance/Deterioration/Defective

storage/IN Transit/[Link]

Name of Unit Loss Statt. No. Amount Remarks

283
 ANNEXURE 'D'

Particulars of Airframes and Aero engines "Struck off" during the financial year……………

284
 APPENDIX X

Referred to in Para-9 of this Manual

AUDIT OF SIMPLIFIED ACCOUNTS

GENERAL
1. In emergency or war "Simplified System of Accounting in emergency" or "Simplified System
of Accounting in War" as the case may be, as laid down in Chapter-42, IAP-1501 is adopted
by the Units/ Equipment Depots in the Field Area under the orders of CAS. The audit of the
simplified accounts will be carried out normally on the lines laid down in the previous chapters.
The salient points of peculiar applicability which should be looked into while auditing the
simplified accounts are given in the succeeding paragraphs.

2. Lists of documents which are generally subjected to audit under the simplified system of
accounting in (I) Emergency and (II) War, are given in Annexure 'A' & 'B' respectively to this
appendix.

I. SIMPLIFIED ACCOUNTING IN EMERGENCY

3. It will be seen in audit that Single Stock Record Cards/ Tally Cards in respect of "Special
List" items as notified by Air HQrs (para-6 of Chapter-42, IAP-1501 refers) are kept together
and endorsed "Special List Items" in red ink.

4. Repairable technical items (other than Special List and other items mentioned in para-6,
Chapter-42, IAP-1501) exchanged returned by various flights/ sections on IAFF(Q)-446/
IAFF(Q)-448 are not required to be brought on charge in S.S.R.C's but are to be returned to
repair depot concerned by the Equipment Section under cover of packing notes IAFF(Q)-
432. These IAFF(Q)-432 are to be cross referred with IAFF(Q)-446/ 448 on which the
repairable items have been returned by flight/section.

5. It will be ensured that salvage arisings are disposed of to the Army Salvage Depot in convenient
batches on IAFF(Q)-432 numbered serially, (separately for each financial year) from a
manuscript register maintained for the purpose and the signature of the receipt obtained on
the duplicate. Triplicate copies of IAFF(Q)-432 will be scheduled to the consignee LAOs in
the normal manner.

6. The Articles-in-Use Ledgers which are maintained in respect of items of Store mentioned in
Para-6 of Chapter-42, IAF-1501, will be examined with special care to see that none of these
items issued to Flights/ Sections have been omitted from ledger action. As regards the items
of Barrack Equipment e.g. Clocks Wall, China Plates, Cups, Saucers etc. it will be ensured
by the LAOs that a manuscript record of issues to and return from Mess Flight Section of
these items is maintained by the Flight, Section Commanders. The linking of issues and
returns will be carried out in this document to the prescribed extent.

285
7. D.R. for loss or damage in any one consignment from service or overseas source is not raised
at the discretion of CO provided --
(a) The loss or damage in anyone consignment from service does not exceed Rs. 25.
(b) In case value of loss is in excess of Rs. 25 but falls within the following limits and conditions.
(i) For Inland Receipts Up-to Rs. 100/- at units.
Aviation Stores Up-to Rs. 200/- at Depots/ASPs

Other Stores Up-to Rs. 50/- at units

Up-to Rs. 100/- at Depots/ASPs
Subject to the proviso that the value of the discrepancy is not more than 10% of the
value of the total consignment.
(ii) For Overseas Receipts: -
In case of imports, the indentors should not prefer claims up to £ 10 or $ 25 or equivalent
value in other currencies per item subject to the proviso that -
(a) The value of the discrepancy is not more than 10% of the total value of stores
included in consignment.
(b) Unless total value of such discrepancies per consignment exceeds £ 50
OR
$ 125 or equivalent value (£ 50 in the case of ISM London,
$ 125 in the case of ISM Washington and equivalent value in the case of other
countries).
OR
(c) The intrinsic value of the part involved is so great as to render the entire machinery
or instrument unserviceable.
NOTE:- No claim need be preferred where the value of discrepancy is below £ 2/- $ 5 for each item of
stores despite the value of the discrepancy being more than 10% of the total value of the sores included
in a consignment.
In the above circumstances when D.R. is not raised no loss statements need be raised in respect of
clause (b)(i) & (ii).
8. In respect of vouchers relating to issues to and returns from officers/ airmen of items affecting
Flying Clothing Cart (F. 443-B) and Fs. Q-466, it will only be seen for the month selected for
detailed audit that they bear an annotation to the effect that F. 443-B or F. Q-466 action has
been taken.

9. Airmen serving in Station /Wings/ Units working on simplified system of accounting are
entitled to clothing allowance provided however that the allowance will not be paid where
field service concessions have been authorised. In such cases all replacement both of items

286
 of Public and Personal clothing are made free. In their cases, it will be seen that Form AIFF(Q)-
403 invariably bear a certificate that the exchange is due to fair wear and tear or due to
exigencies of service. Otherwise, F. 440-B action should be taken.

10. In all cases where items of flying clothing, etc. are either not traceable or presumed to have
been lost by the individual in the event of his death in hostilities or due to crash of an aircraft,
no accounting action will be taken. In case any articles of Flying Clothing, etc. have been
traced it will be ensured in audit that Form- IAFF(Q)-429(red) has been raised to bring the
items on charge and it also bears the No. and Date of Personnel Occurrence Report notifying
the death of the individual.

11. It will be ensured in audit that stock-taking of "Special List Items" only is carried out every
three months in the case of consuming units and every six months in the case of Equipment
Depots and the results thereof are recorded in stock Records Cards /Tally Cards and adjustment
action in respect of the discrepancies is taking in the normal manner.

12. It will be seen that a simple manuscript form of monthly account of receipts and issues of
rations is kept. The account will be checked to see that the receipts have been correctly
accounted for with reference to ASC vouchers (Form. 1042) returned by the ASC with the
rations issued and that the issues are correct, with reference to the ration strength taking into
account variations notified in the Personnel Occurrence Reports in the normal manner. It will
further be seen that the resultant over-drawals are adjusted in the normal manner.

II. SIMPLIFIED ACCOUNT IN W AR

13. The accounts maintained are in the nature of a simple record of receipts and issues. The
Equipment accounts are further simplified over and above the simplification made in respect
of these accounts under the simplified system of accounting in emergency. For such of the
accounts and documents which are maintained under war system of accounting, the audit
checks laid down for the previous chapters will be carried out in the normal manner.

287
 ANNEXURE 'A'

DOCUMENTS TO BE SUBJECTED TO AUDIT IN EMERENCY ACCOUNTING

(A) EQUIPMENT SECTION

1. Stock Record Cards/ Tally Cards-IAFF(Q)-468 (for other than packing cases & containers
and salvage).

2. Articles-in-Use Ledger - Forms IAFF(Q)-1515 (only in respect of special list & other items
laid down in Para-6 of Chapter-42, IAP-1501)

3. Manifold Register of Internal Receipt Vouchers - IAFF(Q) 435-A

4. Manifold Register of External Receipt Vouchers - IAFF(Q) 435-B

5. Manifold Register of Internal Issue Vouchers - IAFF(Q) 436-A

6. Manifold Register of External Issue Vouchers - IAFF(Q) 436-B

7. Manifold Register of Conversion Vouchers - IAFF(Q) 437-A

8. Manuscript Register of Stock Record Cards - IAFF(Q) 468.

9. Register of Losses - IAFF (Q) 1521.

10. Register of Loans (Inward & Outward)

11. Register of Discrepancy Reports (Inward & Outward)

12. Register of Payment Issues.

13. Forms-IAFF(Q) 429.

14. Register of Snap Checks carried out by the Equipment Officer.

15. Vouchers: Internal Issues - IAFF(Q) 447 (in single copy)

16. Vouchers: External Issues - IAFF(Q) 429

17. Vouchers: Internal Receipts - IAFF(Q) 448(in single copy)

18. Vouchers: External Receipts - IAFF(Q) 447/1368 (both blue and red to be filed by the
consignee)

19. Vouchers: conversion - IAFF(Q) 446/ IAFF(Q) 403

20. Stock-Taking Sheets - IAFF(Q) 403 (Special List Items)

21. Manuscript record of items of Barrack Equipment only

22. Forms -- IAFF(Q) 432 (Packing notes for issue of repairable articles to appropriate Repair
Depot)

288
23. Discrepancy Reports - IAFF(Q) 428

24. Forms - IAFF(Q) 444 (Old For 668)

25. Manuscript Register of packing notes -- IAFF(Q) 432 (both for repairable items & salvage
arising)

(B) ARMAMENT SECTION

1. Stock Records Cards - IAFF(Q)-468

2. Manuscript Register of Sock Record Cards

3. Magazine Loan Book

4. Register showing expenditure of cartridges for shooting stray dogs & applied pests.

5. Manifold Register of Issue Vouchers - Arms and Explosive separately.

6. Manifold Register of Receipt Vouchers - Arms and Explosive separately.

7. Manifold Register Conversion vouchers.

(C) M. T. ACCOUNTS

1. IAFF(T)-901, Application for M.T.

2. IAFF(T)-905, Application for use of transport on payment.

3. IAFF(T)-419, Store man's Petrol Book

4. List of approved runs.

5. List of authorised establishment of M. T. Vehicles.

6. Register of M. T. Vehicles.

7. Mileage Card-IAFZ 2212 (revised) & Card Diary [IAFZ-2209 (revised)]

8. Register of M. T. on repayment-IAFF (F)-1520

(D) AVIATION ACCOUNTS

VIATION

1. Register of recoveries regarding landing Housing Charges.

2. IAFF(Q) 419, Store man's Petrol Book.

3. Flight Authorisaiton Book - IAFF (AO)-1202.

(E) RATION ACCOUNTS

RATION

1. Ration Indent - IAFF 1024.

289
2. Record of daily issue to Messes.

3. Monthly Summary of Rations.

4. IAFZ-3033

5. LARC.

(F) MEDICAL ACCOUNTS

1. Medical and Surgical Ledgers - F.823

2. Issue Vouchers

3. Receipt Vouchers.

4. Loss Statements.

(G) PHOTO ACCOUNTS

PHOT

1. Stock Record Cards

2. Forms - IAFF(AO) 1223 Job Sheets.

(H) WORKSHOP ACCOUNTS

1. Job Sheets - IAFF(Q) 401

(I) MISC
MISC.. ACCOUNTS

1. Railway Warrants & Credit Notes.

2. Property Book in respect of ASC Stores.

3. Register of Telephone Trunk Calls.

4. Register of Dead Stock Articles.

5. Contract Agreement Local Services.

290
 ANNEXURE 'B'

DOCUMENTS TO BE SUBJECTED TO AUDIT IN WAR ACCOUNTING (EQUIPMENT)

1. Manuscript Record of Airframes, Aero-engines, M.T. Vehicles held by the consuming units.

2. All other documents enumerated at Sl No. 1 to 12 and 15 to 25 pertaining to Equipment

Section, Sl. No.1, 3, 4& 5 of Armament Accounts and all documents in respect of Ration,
M.T., Medical, Aviation, Photo and Misc. Accounts of Annexure 'A'.

291
 APPENDIX - XI (REFERRED TO IN PARA 363 )
PARA

REGISTER SHOWING CLAIMS ON ACCOUNT OF VERIFICATION OF QUALIFYING

SERVICE AFTER 25 YEARS SERVICE OR 5 YEARS BEFORE REIREMENT
RULE 32 C.C.S (PENSION) RULES

1) He has elected pensionary benefits within the prescribed time limit vide his election certificate
recorded with the service documents. As he was serving in I.E. on confirmation he is atomically
governed by the pension rules. A certificate from the Pay Audit Officer that Govt. contribution
thereon has been resumed to Govt. is enclosed / recorded at page …….. of the service
document.

2) The under mentioned spells of non-gazetted service are not capable of being verified with
reference to the office copies of pay bills / local records in consultation with the concerned
units / formations and hence certificate of verification of service for the period couldn't be
recorded in the service book. A written statement on plain paper filled by the Govt. servant
alongwith available documentary evidence as furnished by him, if any, is enclosed. These
spells of service may be verified by the PAO under the provisions of rules 59 (iv) of CCS
(P), Rules 1972 (period from ………………. To …………).

3) The individual held / has been holding Gazetted post from ……. To………… This spells of
service may be verified by the PAO with reference to the history of service of the officer.

Service documents enclosed for reference and returned

(NOTE:- Strike out certificate not applicable).

Signature------------

Designation----------

H.O.O

Dated ;----------

Proforma regarding verification of service

292
 Par
artt - I

(To be completed by the head of office)

Name______________________

Date of Birth________________

Date of continuous appointment in government service_________________

Date of confirmation___________________________

Appointment held ______________ Unit / Formation_______________

293
294
 APPENDIX-XII

( Referred to in para 363-A)

PROGRESS REPORT ON IMPLEMENTION OF SIMPLIFIED PROCEDURE FOR

SANCTION OF PENSION IN RESPECT OF DEFENCE CIVILIANS

Authority : CGDA's No. 5204/AT-P(Civ) dated 07.03.1991.

295
 APPENDIX-XIII

AUDOLS MANUAL P
MANUAL ar
artt - I (IMMOLS)
Par

E-audit procedure

1. In this chapter the audit procedure in computer environment is explained. This procedure is
subject to modification when AF units implement EQOULS.

2. Audit functions covered under AUDOLS

For the purpose of audit through computer by using AUDOLS software, audit functions are
divided into four main functions. Viz (i) linking and Auditing Issue (ii) linking and Auditing
receipts (iiii) SSRC audit and SSRC casting (iv) Audit of Miscellaneous (v) MIS Reports.
Following are the sub-functions against each main audit functions

2.1 Linking and auditing Issues

(a) Issue linking

(b) Issue Audit

2.2 Linking and Auditing Receipts

(a) Receipt linking

(b) Receipt audit

2.3 Auditing SSRC and SSRC casting

(a) SSRC AUDIT

(b) Casting

(c) Verification of LLB

(d) Shelf Life audit

(e) Non-Moving/Slow moving stores

(f) Authorization dependency

NOTE: Reports on undue holding of Cat D stores, Holding of AOG items,, Undue holding of Cat
E/salvage in stores are not presently provided for in AUDOLS

2.4 Auditing Misc. Accounts

(a) Audit of DRs

(b) Audit of CVs

296
 (c) Audit of Loss Statements.

(d) Auditing Stock taking

(e) Transportation ( SIS/SOS, VIS/VOS)

(f) Dues In Dues Out

2.5 MIS Reports

(a) Casting report

(b) Authorization dependency report

(c) Shelf Life audit report

(d) LLB verification Report

3. Scope of Audit through AUDOLS

In computer environment the aim is to concentrate more on audit on higher audit angle
rather than routine audit. The scope of audit by using AUDOLS is explained in succeeding
paragraphs.

4. Voucher analysis

Para 48 AFLAM specifies conducting voucher analysis before commencing the audit. The
exercise will continue to be carried in computer environment also. A specific "voucher analysis
report" has been proposed. In the meantime, following procedure may be followed for carrying
out voucher analysis:-

4.1 Internal Issue voucher

(a) Select (click) "Issue " query from menu.

(b) Select (click) "Internal Issue ".

(c) The internal receipt query will open. It will have three options. "Issue", "Items"
and "Others"

(d) Click "Issue "

(e) Two options will appear "Voucher" and "others'

(f) Click "Voucher"

(g) Click (click here to select IN/IVs)

(h) Select the vouchers from 'from' 'to' date option and Click on "show"

(i) Click "Ok" The IN/IVs raised during the period selected will appear in the list
box.

297
 (j) Click on "show" All selected vouchers will appear in the grid at the bottom of
the screen. A message box indicating the number of records found will also be
displayed.

(k) Click "Ok" to proceed.

(l) To hide/unhide columns, sorting the data and print out refer procedure at Appendix
B)

4.2 For selecting other type of Issue vouchers same procedure may be followed. For this
purpose select "Issue" query from menu and select the required field i.e "External
issue" "MTV (issue)", "CIV" etc.

4.3 Internal Receipt

(a) Select (click) "Receipt " query from menu.

(b) Select (click) "Internal receipt ".

(c) The internal receipt query will open. It will have three options. "Receipt",
"Items" and "Others"

(d) Click "Receipts "

(e) Two options will appear "Voucher" and "others'

(f) Click "Voucher"

(g) Click (click here to select IN/RVs)

(h) Select the vouchers from 'from' 'to' date option and Click on "show"

(i) Click "Ok" The IN/RVs raised during the period selected will appear in the list
box.

(j) Click on "show" All selected vouchers will appear in the grid at the bottom of
the screen. A message box indicating the number of records found will also be
displayed.

(k) Click "Ok" to proceed.

(l) To hide/unhide columns, sorting the data and print out refer procedure at Appendix
B)

4.4 Receipt within Air Force

(i) Select "Issue " query from menu

(ii) Click "Material transfer"

(iii) There will be three options "Issue" "Item" and "others"

298
 (iv) Click" issue"

(v) Click to select

(vi) Select "Incoming" from status combo

(vii) Select date "From" "To" for the required period. All the incoming vouchers
(external receipts from other AF units) for the selected period showing the Issue
Voucher Number of consignor and Receipt Voucher Number of consignee will be
displayed on the screen. From this either LAO can take a print out or note the RV
Number against the IV Number.

(viii) Click "Ok" The IN/RVs raised during the periodselected will appear in the list
box.

(ix) Click on "show" All selected vouchers will appear in the grid at the bottom of
the screen. A message box indicating the number of records found will also be
displayed.

(x) Click "Ok" to proceed.

(xi) To hide/unhide columns, sorting the data and print out refer procedure at Appendix
B)

5. Pairing

Before selecting Internal vouchers, both IN/IV and IN/RV, for linking as well as audit, LAOs
(AF) are required to pair the duplicate voucher with original voucher. Similarly EX/IV are
also required to be paired before its scheduling concerned consignor LAOs.

5.1 Internal vouchers and MTVs.

Pairing of internal vouchers, both IN/IV and IN/RV is not significant in computer
environment. Similarly pairing of MTV (Issue between AF units) is also not significant.
Hence pairing of Internal issue vouchers and MTV (Issue between AF units) is not required
in computer environment. However vouchers still required to be scheduled to other LAOs
will be paired before its scheduling to concerned consignee LAOs. (Please see Note below
para 81 AFLAM)
6. Scheduling of vouchers.
Scheduling of vouchers is one of the important roles of LAOs (AF). However in computer
environment, when an item is issued to other AF unit though the MTV get transmitted to the
consignee through network. The consignee LAOs (AF) can also access to such "Incoming
Vouchers" as per the method defined at para 24.4 above. Hence scheduling of vouchers from
one LAO (AF) to other LAO (AF) is not significant as linking of receipt vouchers by consignee

299
 LAOs (AF) is one of the query provided for in AUDOLS.

NOTE 1: When stores are issued an AF IMMOLS site to an AF Non- IMMOLS site or vice versa
the vouchers will continue to be scheduled to concerned consignee LAOs (AF) as per the existing
procedure.

NOTE 2: When Stores are Issued between AF Non-IMMOLS Sites the vouchers will continue to
be scheduled to concerned consignee LAOs (AF) as per the existing procedure.

NOTE 3: When Stores are issued to Other Services the vouchers will continue to be scheduled to
concerned consignee LAOs (AF) as per the existing procedure.

7. Periodicity of audit

(Please refer PCDA (AF) Dehradun FA Section circular [Link]/IV/107-X DATED 2.7.2002)

8. Percentage of audit

(Please refer PCDA (AF) Dehradun FA Section circular [Link]/IV/107-X DATED 2.7.2002)

9. Selection of vouchers for audit

Please refer para 23 of AFLAM.

10. Logging on to AUDOLS.

To log in to AUDOLS there should be an authorized user ID password. User ID pass word
can be created by the user, if necessary in consultation with the system administrator.

(The procedure as to how installs AUDOLS software and re-install it is explained in Appendix
B to this manual)

10.1 To log on to AUDOLS perform following steps: -

(a) Double Click on to AUDOLS icon on your desktop. Application will start and a message
box indicating whether to run the Stores Procedure script on the SQL server or not will be
displayed.
(b) Click "yes" to execute the Stores procedure script on the SQL server. A blank screen
(Command Prompt) will pop up for few minutes. It will create Stores Procedure in the
database.
NOTE: Do not close this blank screen (Command Prompt) Allow it to close automatically
(c) Click "No", if you do not want to execute the Stores Procedure script. A warning message
indicating that 'your application will not be function properly' will be displayed.
NOTE: There is no need to execute the script, if you have already executed it.

300
 (d) The AUDOLS screen will open (Refer Fig 1)

Fig 1
NOTE 1: If the audit staff has logged on to the application for the first time, change the password for
security reasons.
(Procedure of change of password is defined in Appendix E to this manual)

11. Procedure of performing queries.

For performing various audit functions provided for in AUDOLS audit staff has to select the
queries from the menu and go to search criteria. Perform following steps:-
(a) Select the required query from Menu as shown in Fig 1 above, by using mouse or keyboard
and Click the query. The required query will open.
(b) Enter or select the required search criteria
(c) There are multiple tabs available in each query screen. Each query has sub-query
criteria. Enter/Select search criteria in any tab or in all the tabs. Please Note that some
criteria are mandatory. For example in the "Loss and Damage" tab of the Losses and damage
query screen the select "Losses and damages voucher field is mandatory.

301
 (d) [……] indicates that the query criteria needs to be selected from another sub-query screen.
(e) After the sub-query criteria is displayed in the parent screen, enter/select criteria in other
tabs (or in the same tab), if required.
(f) Click on "Show". The records meeting the search criteria will be displayed in the grid at the
bottom of the screen. A message box indicating the number of records found will also be
displayed. Click "OK" to proceed.
(Detailed procedures for performing various audit functions under AUDOLS are defined in
Chapter IV to VIII of this manual).
NOTE :- Procedure of Hiding/Un-hiding columns, using Interface, Taking print out, Exiting from
AUDOLS are explained in Appendix B to this manual
12. Acronyms/Abbreviations/Terms used in IMMOLS/AUDOLS
Sl No Acronyms and Abbreviations Description
1 IMMOLS Integrated Material Management On Line System.
2 AUDOLS Audit On Line System
3 GIG Global Index Gallery
4 GC IMMOLS Global Co-coordinator IMMOLS
5 IPT (AF) IMMOLS Project Team.
6 Cut off date The date prescribed by IPT to commence e-transaction
7 LLB Last Line Balance
8 Document No. Issue Voucher Number.
9 Document type Issue voucher type
11 Parent Document Demand Placed by the demander
12 Parent Document date Demand date
13 MTR Material Transfer Request.
14 SSRC Single Stock Record Card
15 Item Code Item code Number allotted to each store in addition to
Section reference Number.
16 Vocab Type of stores "Ration" "Jag" etc.
17 Description Nomenclature of the store
18 DOQ Denomination of Quantity
19 Class Class of Store (Class A, B C )
20 Category Category of stores (A, B, C, D, E)
21 Priority AOG, IOR etc.
22 Required Quantity Quantity demanded

302
Sl No Acronyms and Abbreviations Description
23 Issued Qty till date Progressive total of Qty issued when demand is met partly
24 Reduced Qty Qty Demanded Minus Qty issued
25 Full/Part Demand is met in full or partly
26 IN/IV Issue within AF unit
27 CIV Certified Issue Voucher
28 MTV Issue of stores by AF unit to other.
29 EX/IV Issue of stores to other Services.
30 PLS Provisional Loss Statement. Loss statement awaiting
sanction
31 FLS Final Loss Statement. Loss Statement sanctioned.
32 SIS Store Inward sheet
33 SOS Store Outward Sheet
34 VIS Vehicle In Sheet
35 VOS Vehicle Out sheet.
36 DR Discrepancy return
37 Shelf life audit Audit of date expired items.
38 Authorization dependency Minimum maximum establishment of stores
39 RVs source of supply Source of supply/receipt of stores
40 Item transaction report Replica of SSRC/Tally card
13. SSRC casting and Audit of SSRC

Following are the audit functions under "SSRC Audit and SSRC casting ".

(a) SSRC casting

(b) Shelf Life audit

(c) Authorization dependency

(d) Conversion details

(e) Non-Moving/Slow moving stores

(f) New SSRCs

(g) SSRCs closed or declared dead

(h) Verification of LLB

(i) Rate in the SSRC

303
14. SSRC Casting
An option has been provided for in AUDOLS to conduct on line casting. The method to
perform SSRC casting query is defined below:-
(a) Select "Report" query in the menu (Refer Fig)
(b) Select (click) "casting report"
(c) Casting report screen will open as follows

(d) There are options available "Date from Date to", "Casting type", and "Transaction
type".
(e) Select period from "date from' 'to' option
(f) Under casting type includes three options "Not Ok", "Ok" and "All". ('Not Ok' means
only such transactions will be displayed where there is error. 'Ok' means only such
transactions will display where there is no error. 'All' means all transaction for error as well
as no error).
(g) Select the required option "Not Ok", "Ok" and "All".

304
 (h) In transaction type there are two options "All transaction" and "One line balance". 'All
transaction' means item wise balances for each transaction and 'One line balance' means
last line balance for each item.
(i) Click "OK" The report will open.
(j) Click print option in the tool bar and the report will be Printed.
NOTE 1: Casting can be done for any selected period
NOTE 2: Casting report also serves the purpose to verify that all the vouchers during the period (selected)
have been posted in the SSRC
NOTE 3: In Casting report, Ok will be highlighted with yellow color and Not OK with red color

15. Shelf Life audit

Shelf Life audit is carried out to see that whether any 'life expired stores' are held in stock or
not.
31.1 To perform shelf Life audit query, following are the procedure.
(a) Select "Others" Option from menu
(b) Select option "Miscellaneous" option
(c) Select "Shelf Life Audit" and click.
Shelf life query screen will open.

305
 (d) There are three tabs available "period", "item", "Others"
(e) Select "Expired items" option from "Type" compo box
(f) Select from "Store code" compo box the store type needed (leave 'Store Code' compo
box blank if records for all types of stores needed)
(g) Select "period" from- 'date from- to' option and select period by using arrow button
(h) Click "show" The records will be displayed on the grid at the bottom of the screen. A
message box indicating the number of records found will appear in the screen.
(i) Click "Ok" to proceed
(j) Take print out by hiding columns those not required refer Appendix B).

16. Authorization dependency

Authorization dependency is a report generated wherein a list of items where the quantity
held by the unit is in excess of authorized stock. This is an audit on higher audit angle to
identify holding of stock in excess of the authorized stocking limit.

32.1 Following procedure will be followed:

(a) Select "Report" Option from menu

(b) Select "Authorization Dependency"

(c) A screen will open with compo box option "Unit" and "Vocab"

306
 (d) Select unit from "Unit" compo box and select Vocab from "Vocab" compo box
(e) Click "Ok" The report will open
(f) Take print out
(g) for hiding, sorting, printing, and exporting/Importing data refer Appendix B)

17. Conversion Reports

Conversion voucher is generally raised

(a) To set off surplus against deficiencies or vice versa of articles corresponding in condition
and quantity under the same generic heading falling within the same section of the vocabulary
of stores; also when the items deficient are of a lower category than the corresponding
surplus.
(b) To convert the unserviceable stores into salvage.
(c) To support transfer of stores from the charge of one inventory holder to that of another in a
different section of the unit.
(d) To strike off charge the quantities of articles ordered for disposal from the main stock record
cards to the disposal stock record cards and vice versa.
(e) To effect change in denomination of stores held in stock.
(f) To convert the balance of N.I.V. items when Command N.I.V. numbers are allotted.
(g) To adjust account when the stores are received in a condition other than in which vouchered
(h) To adjust losses arising from deterioration of equipment held on the charge of a Stock
Holding Establishment (Equipment Depot, A.S.P. or any other unit where command stocks
are held ) as serviceable but found by a competent inspecting officer to be unfit for issue
owing to deterioration while in stock and the deterioration is not due to lack of suitable
storage accommodation of failure to look after the articles properly while in store.
(i) To adjust stock record card/ tally card balance when stores of a similar type size or category
have been wrongly identified or conditioned and incorrectly recorded. Such adjustments
are, however, to be supported by the No. and the date of original voucher on which the
equipment was received or issued or incorrectly identified or conditioned which is to be
recorded on the conversion voucher.
(j) To adjust account in the case of discrepancies in condition in consignments when the same
is admitted by consignor.
(k) Any other points?

307
17.1 Conversion voucher will be checked to see that:
(a) The conversions made are genuine and within the generic heading of the same
vocabulary section
(b) In case strike off of stores in stock taking holding establishments owing to deterioration
in stock, Form Q 403/408 raised to adjust the change in condition of the stores are
invariably endorsed with the following certificate by the Competent Inspecting
Authority. " Certified that the stores enumerated herein have been found unfit
for issue owing to deterioration while in stock and the deterioration is not due to
lack of suitable accommodation or failure to look after the articles properly in
store in store"
(c) Stores have been converted to salvage under standing orders or on receipt of specific
orders from Air HQrs, wherever necessary, and that the resultant produce of stores are
correctly brought on charge.
(d) Where surplus/ deficiency has been set off against others as per the standing orders
the quantity so set off is as per the stock taking documents.
17.2 For carrying out the checks as above there is provision in AUDOLS to generate a report of
conversion details for a given period. Following are the procedure to generate the conversion
details report:
(a) Select "Report" from menu
(b) Select "Conversion details"
(c) A screen will open with compo box "Conversion Doc type", "Store" and "Date
from- to"

308
 (d) Select conversion Document type (Voucher Type) from "Conversion Doctype"
compo box. Leave it blank if records for all stores are needed
(e) Select "store" from Store compo box. Leave it blank if records of all stores are
needed.
(f) Select "Date from- to" from the date option
(g) Click "Ok" to open the report
(h) Take print out
(i) For hiding, sorting, printing, and exporting/Importing data refer Appendix B)

18. Non- Moving store

IMMOLS caters for Non-moving store based on demand i.e stores held in store for which
there is no demand from consumer units for last six months. Accordingly AUDOLS also
provides for a query of Non-Moving store based on demand. However as per the audit
parameter defined in AFLAM and other instructions audit of non-moving store or slow moving
store is intended to identify stores held in store without any utilization. Till AUDOLS facilitates
a query for slow moving store/slow moving store based on "issue/utilization " by prescribing
a specific date/period LAO may carry out audit on Non-moving store as per the parameters
presently available in AUDOLS and object it in audit.

34.1 Following are the procedure to perform Census query for audit of Non Moving stores:-

a) Select Tally card Æ "Census". Census query screen will open.

309
 b) Select the period from Date from, to

c) There will be four options "Active Stores", "Obsolete Stores", "New items" and" Non-
moving stores"
d) Select "Non Moving Stores"
e) Non-moving store for the selected period will appear in the screen.
To select a particular item from GIG perform the following steps

(a) Click on item tab. The GIG screen will open. Click on to select items

(b) From "REF/PARTNo" select Material group (from "Material group" Combo), Vocab
from "Vocab" Combo and type the Reference /Part Number or Item code in the "Ref/Part
No"
(c) Click on Show. The records meeting the search criteria will appear in the screen
(d) Click on the required row number for selecting the record
(e) Click on Ok. Details of the item will appear in edit box.
NOTE 1: From census query Audit of Active items: Items for which there is demand, Obsolete items:
Items declared obsolete, New items: New Items: New Tally cards/SSRCs can also be performed.

310
19. New Tally cards/ SSRCs

An option is provided for in AUDOLS to verify the New Tally Cards/ SSRCS for a selected
period. LAOs (AF) will audit the new Tally cards/SSRCs with reference to Receipt Voucher
and

19.1 Following are the procedure to perform Census query for audit of New Tally Cards/SSRCs:-
(a) Select Tally card/SSRCs ' "Census". Census query screen will open.

(b) Select the period from Date from, to

(c) There will be four options "Active Stores", "Obsolete Stores", "New items" and "Non-
moving stores"
(d) Select "New items "
(e) New items for the selected period will appear in the screen.
To select a particular item from GIG perform the following steps
(a) Click on item tab. Census query screen will open

311
 (b) Click on item and to select the items GIG Screen will open.
(c) From "REF/PARTNo" select Material group (from "Material group" Combo), Vocab
from "Vocab" Combo and type the Reference /Part Number or Item code in the "Ref/Part
No"
(d) Click on Show. The records meeting the search criteria will appear in the screen
(e) Click on the required row number for selecting the record
(f) Click on Ok. Details of the item will appear in edit box.

20. Dead/Closed cards :

Tally cards which have been completed and those with balances reduced to NIL are not removed
by the executive authorities from the current record, unless the account for the period in
which they were closed have been audited and previous objections, if any, raised thereon
have been settled.

312
21. Verification of LLB

'LLB' described here is distinct from the 'LLB' for carrying out initial audit, explained at
para 6.4 ibid. In initial audit the 'LLB' is the stock balance as on the cut off date brought
down to IMMOLS, whereas 'LLB' described in this paragraph is the closing stock balance as
at the end of an audit cycle.
21.1 When LAO completes the audit for a prescribed audit cycle, the last line balances and
transaction details in the SSRCs maintained by the unit, as at the end of the audit cycle, can
be exported in a file and copied in a floppy/CD. It will be the closing stock balance as at the
end of the audit cycle. The purpose is to match the closing balance as above with the
opening stock balance as on the beginning of next audit cycle and verify the integrity of the
balances. (For example on completion of audit for HYE 4- 9/05, LAO will export the
balance as on 30-9-05. In next audit cycle for HYE 10-3/06, LAO will import the balance
and match it with Opening balance as on 1-10-05). System will provide the details of
mismatch in the opening balances or balances, if any, manipulated.
21.2 Following are the procedure for export data verification LLB
(a) Select (Click) Tally Card/SSRC query from menu. Click select .Tally card/SSRCs
query screen will open.

There are two option tabs "Date", "Item"

(b) Select (click) "Date". Figure will change.

313
Two options will appear "From date" and "To". Select
Required dates by using arrow button. (When we select period, only such items will be
displayed transaction where there are transactions). Whether AUDOLS facilitates selection
of all SSRCs maintained by the unit or it should be selected vocab wise
(c) Click "Export" provided at the right hand side of the screen Grid will be populated with
the data to be exported and the export data dialog box will open
(d) Select drive ("C" or "D" drive)
(e) Enter the file Name in the space "File name"
(f) Click "save"
(g) A message box will open "data successfully exported will be displayed
(h) Click "Ok"
(i) Click "Ok"
(j) For import and verify the LLB at last date Select (Click) Tally Card/SSRC query from
menu.

314
(k) Select Import/verify query screen will open.

(l) Click on import. Screen will change

315
 (m) Select the directory/File where the data is saved
(n) Click "open"
(o) A message box indicating that data is successfully imported will be displayed
(p) To verify the balance click "verify"
(q) Data highlighted with Yellow color indicates 'no discrepancy, and Data with red color
indicates 'discrepancies'.
(r) If there is error in the LLB the verification result will be "Not Ok" else "Okay"
NOTE 1: For hiding, sorting, printing, refer Appendix B
NOTE 2: Discrepancies in the balance should be thoroughly investigated to ascertain the cause.

22. Rate/Cost in the SSRC

Rate/cost in the SSRC is an important requirement. LAOs (AF) raise an observation where
Rates/Cost are not recorded in any SSRCs maintained by the unit.

22.1 Initially during audit-supervised parallel run LAOs (AF) have to obtain print out of LLB.
The print out so obtained, would cover all the SSRCs maintained by the unit as on the cut of
date. From the print out of LLB, LAOs (AF) will carry out an exercise to identify the SSRCs
that do bear Rate/Cost. Wherever rate/cost are not shown an objection will be raised
indicating the Section reference Number, item code number, and nomenclature.
22.2 Subsequently whenever a new SSRC is added, it will, necessarily be supported by a receipt
voucher. Verification whether the SSRC bear Rate/Cost will form one of the exercises
along with credit verification and receipt audit.

23. Auditing Issues

Audit functions under "Auditing Issues " and audit parameters are explained in succeeding
paragraphs.

24. Following ar
ollowing aree the types of issues
(a) Internal issue
(b) MTV (Issue within AF)
(c) External Issue (Issue outside AF)
(d) CIVs

25. INTERNAL ISSUE VOUCHER

IN/IVs are generally raised to meet the requirement/ demand of the user section/ Lodger
Units of the Air Force formations at a particular Station. The inventory holders/User section
raises demands and Logistic section issue stores after approval by the Eqpt. Officer.

316
 25.1 Internal issue voucher will be checked to see that:-

(i) Authority for demanding the item, such as Scale/ Qty or publication in support of the demand
is quoted by demander.
(ii) In case of Class A & B stores, subsidiary accounts in which action is taken viz. A in U
ledger, inventories, "Form Q 420" have been indicated.
(iii) Demand No. of the inventory holder has been allotted.
(iv) Demand of class C stores viz. Cleaning material, Kerosene Oil etc. are as per scale fixed by
the BOO to be checked manually.
(v) While demanding stores of valuable or attractive nature, specific job/relevant IAFQ 401/
job card/ work order Number is quoted.
(vi) Demand pertaining replacement or loss of Stores are duly crossed referred to the relevant
document IAFQ 406 or IAFQ 440B.
(vii) Qty supplied has been mentioned.
(viii) Where the item demanded is not issued the figure 0 substituting N/A is being shown against
the item.
(ix) In case of voucher for the item included in Air Frame, Check list, Vehicle Kit list, Vehicle
guide list etc. the items so issued are within authorized scale.
(x) In case item is required in connection with repair/ maintenance, relevant job card/ work
order number and survey list no. is quoted.
(xi) Issues made against unserviceable items are properly interlinked with receipt transactions.
(Return of unserviceable items will be watched through Cat D watch register).
(xii) Reference Number, Description, Class of stores, Category etc as SOC in SSRC/ tally card
will be cross linked with the voucher in audit.
NOTE 1 : Presently facilities of interlinking vouchers, check of scale and issues against the authorization
as per BOO and issue against deficiencies not available in AUDOLS and as such required to be checked
manually.
NOTE 2 :As in AUDOLS, voucher cannot be selected from the SSRC, therefore audit checks can only
be carried out from vouchers to tally card/SSRC and not from SSRC to vouchers.
However there is an option in AUDOLS in casting reports where we can select all the tally cards and
transactions of a particular period to carry out audit of issues from tally card to vouchers but the
system takes much time to access the data.
25.2 Following are the procedure of linking and auditing issues through AUDOLS.
(i) Select (click) "issue" query from menu.
(ii) Select (Click) "internal issue" (internal issue voucher query screen will open).

317
You will have three search criteria i.e. issue, item, others.

(iii) In the issue tab click on to select IN/IV (internal issue voucher screen will open).

318
 (iv) Select the period (you can select particular voucher by typing document, by pressing Shift
and then % and type the document number to select the particular voucher or all vouchers
raised during the period or voucher raised as store wise).
(v) Click show, record meeting search criteria will be displayed in the grid.
(vi) Click on the required row for selecting the record. (You can select continuous and non
continuous single in continuous 2 or 3 rows in multiple records).
(vii) Click on OK. Issue query screen will close and the voucher selected will be displayed in the
IN/IV list box in the internal issue query screen.
(viii) Click on show (all the records of transaction will appear in the grid).
(ix) Click Print, take out the print.
(x) You can hide/unhide data as per requirement.

26. MATERIALS TRANSFER VOUCHER (MTV)

Stores transferred between Air Force Units was earlier termed as EX/IV. Consequent upon
implementation of IMMOLS/AUDOLS, issue between one Air Force to other Air Force Units
is termed as Material Transfer Voucher. There are three types of issues between Air Force
Units/Formations.
(i) Issue of stores on demand.
(ii) Issue of stores against Air HQ/Command allocation.
(iii) Unit returns.
NOTE: For detailed procedure of raising MTV are explained in para 14 a & b of Chapter 2 of
this manual.
26.1 AUDIT OF MTV

MTV will be audited to see that -

(i) Transfer type (Against demand, Unit return and Air HQrs Allocation) and
priority demand (AOG, IOR etc.) are annotated in the MTV (Issue voucher)

(ii) What is the created stores :- Created stores from which item have been issued,
whether it is of technical stores/Jaguar/Mig etc.

(iii) Authority for transfer of stores has been mentioned in the voucher.

(iv) Categories and class of stores is mentioned in the voucher.

(v) Packing note, mode of conveyance/ date of dispatch etc. are mentioned in the
voucher.

(vi) On "loan issue" to other Air Force Unit period of loan and approval of competent
authority is mentioned in the voucher. It will also been seen in audit that the
voucher is marked with remarks " For action in Loan In register"

319
 (vii) Issue linking will be carried out from SSRC to issue voucher (Refer Note 2 IN/
IV).

26.2 Following are the procedure of linking an audit of MTV through AUDOLS.

(i) Select (Click) issue on menu bar

Select (Click) MTV (MTV transfer query screen will open). There are three
different tabs for MTV, issue items and others. You can specify any criteria.

IN THE ISSUE TAB:-

(ii) To select MTV click on
(Which is mandatory criteria to select MTV)
MTV Query screen will open

320
 (iii) Select the required such criteria.
(iv) Select the period, status and created stores (i.e. approved, registered, issued,
incoming etc.)
(v) Click on "SHOW" full record meeting the such criteria will be displayed in the
grid.
(vi) Select the required row. (You can select continuous or non continuous multiple
record)
(vii) Click on OK . Select MTV screen will close and the voucher no. of the selected
record will be displayed in select MTV list box of MTV query screen.
(viii) Click on "SHOW". All the item issued in the selected record will be displayed in
the grid.
(ix) Click on PRINT and have print

27. CERTIFIED ISSUE VOCUHER (CIV)

Certified Issue voucher are generally issued to support for strike off from stock record/ tally
cards etc. It is prepared under the following circumstances.

(a) Loss of equipment due to enemy action.

(b) Loss/ Damages to Air Force equipment as a result if flying accident.

(c) Deficiencies in consignments between Air Force Units where the carrier is held responsible
for the loss and the claims are raised against it.
(d) Transfer of stores from one item code to another item code.
(e) To strike off charge from SSRC in respect of the class C stores/ clothing issued to various
Sections/ Airmen as per scale/authorization by the BOO proceedings.
27.1 CIVs will be audited to see that:-
(a) CIVs are cross-referred with the relevant CRVs, RVs, IVs, wherever necessary, and
"strike of action certificate" is bonafide .
(b) In the case of strike off of stores due to enemy action, service accidents full particulars
of the circumstances and the orders of higher authorities wherever appropriate is
recorded on them under the remarks column.
(c) For SOC action, procedure as laid down for IN/IV/MTV/EX/IV will be followed.
27.2 PROCEDURE TO CHECK IN AUDOLS
(a) Click "issue" on menu bar.
(b) Select CIV voucher (CIV voucher query screen will be open).

321
There are three different tabs in the CIV query screen.
Issue, item and others
IN THE ISSUE TAB :-
(i) Click to select CIV. Select CIV screen will open.

322
 (ii) Select the search criteria and period and click on SHOW. (Record meeting the search criteria
will be displayed in the grid.
(iii) Select the required row. (you can select continuous or non continuous record for multiple
records.
(iv) Click on OK. (select CIV screen will close and voucher no. of the selected record will be
displayed in the select CIV list from the CIV query screen.
(v) Click SHOW the items issued will be displayed in the grid.
(vi) Click on PRINT to take the print of voucher no. and date.

28. EXTERNAL ISSUE VOUCHER (EX/IV)

EX/IV are raised for transfer /issue of stores to other than Air Force Unit.
Following are the type of EX/IV vouchers.
(i) Issue to other services (Army/Navy)
(ii) Issue to PSU's.
(iii) Issue to private parties.
(iv) Foreign consignments.

28.1 FOLLOWING AUDIT CHECKS REQUIRED TO BE EXERCISED DURING AUDIT

OF EX/IVs
(i) Store code/ Type of stores items and category issued etc. and the authority under
which issued.
(ii) Type of issue whether it is for book adjustment, free issue or on loan.
(iii) In case the item issued are on loan date/period of loan has been mentioned therein.
(iv) Store issued is properly priced.
(v) Issue linking will be carried out from SSRC/Tally card to issue voucher.
NOTE :- As regards other checks as prescribed in the para 96 to 102 of AFLAM these will be continued
to exercise manually Viz ISA, free loan, Book adjustment,
(vi) stores issued to other agencies in different types i.e. Free or on payment can be checked
separately.
(vii) For SOC action, procedure as mentioned for IN/IV, MTV will be followed.

28.2 FOLLOWING IS THE PROCEDURE TO BE ADOPTED IN AUDOLS

(i) Select "Issues" in the menu bar.
(ii) Click on EX/IV.
(iii) Select EX/IV (EX/IV query screen will open).

323
There are three different tabs in the EX/IV query screen. Issue, item and others.
(a) In the Issue tab :-

(i) Click box to select EX/IV.

324
 (Select EX/IV VOUCHER screen will open)
(ii) Select the search criteria i.e. period and click on show. (Record meeting the criteria will be
displayed in the grid).
(iii) Select the required row (you can select continuous or non continuous record from multiple
record).
(iv) Click on OK. (Selected EX/IV screen will close and voucher no of the selected record will
be displayed in the select EX/IV list from the EX/IV query screen).
(v) Click on SHOW items issued will be displayed in the grid.
Click on PRI

29. Auditing receipts

Audit functions under "Auditing receipts" and audit parameters are explained in succeeding
paragraphs. Auditing Receipts includes Linking/credit verification of receipts from Receipt
Voucher/Invoice/packing Notes, A&I Notes to SSRCs.
30. Following are the various types of receipt vouchers comes under the purview of Auditing
Receipts:
a) IN/RV (Receipts within unit)
b) MTV (Receipts from other AF units)
c) EX/RV (Receipt out side AF)
d) Foreign Invoices
e) CRV
31. IN/RV (Receipts within unit)
Parameters relating to audit of Internal Receipt Vouchers laid down in AFLAM are
summarized below
(a) Linking of Receipts transactions will be carried out from entries in the receipt vouchers
into SSRCs and not vice-versa
(b) The category of the equipment returned is duly endorsed by the technical or other
appropriate specialist officer. When Cat E items are returned, the generic heading
under which the item is to be accounted for in salvage records is given by the specialist
officer.
(c) Where the equipment has been returned un-serviceable through unfair usage (Not by
fair wear and tear) penal recovery is effected.
(d) Cat 'D' equipment returned by flight/lodger units for repair and equipment /stores
returned by Flight/lodger Units for back loading to ED/BRD being not suitable for
their requirements are not held unduly held in store

325
31.1 For linking and audit of IN/RV hard copies of all types of vouchers for the month/
period selected for audit is obtained from units or through AUDOLS. Following are
procedure of linking and audit of transaction in IN/RV to SSRCs.
31.2 Linking the IN/RV transaction with SSRC
31.2.1 To select a particular IN/RV
(a) Select "Receipt" query from the menu.
(b) Select (click) "Internal Receipt"
(c) Internal receipt query will open.

(d) It will have three options. "Receipts","Items" and "Others"

(e) Click (Click here to select the item)

(f) Select internal receipt voucher screen will open

326
 (g) Click "Voucher" option
(h) Type the voucher Number (% and Voucher Number)
(i) Click on Show
(j) Particulars of the voucher will appear in the screen
(k) Click "Ok" The selected voucher No will appear in the select list box of internal
receipt query screen.
(l) Click on show. All the transaction will appear in the grid.
(m) To hide/unhide columns, sorting the data and print out refer Procedure at Appendix
A)

31.2.2 To Select IN/RV Flight/ Section-wise

(a) Perform action at (a) to (c) at 43.2.1 above
(b) Click "Others" options
(c) Select the Flight/section from section combo
(d) Select the period fro Date from; to option
(e) Click on Show
(f) Selected vouchers will appear in the screen
(g) Click Ok to proceed
(h) To hide/unhide columns, sorting the data and print out refer Procedure at Appendix B.

31.2.3 To Select IN/RV store-wise.

(a) Perform action at (a) to (c) at 43.2.1 above.
(b) Click "Others" options
(c) Select the "Store" Store combo
(d) Select the period fro Date from; to option
(e) Click on Show
(f) Selected vouchers will appear in the screen
(g) Click Ok to proceed
(h) To hide/unhide columns, sorting the data and print out refer Procedure at Appendix
A)

31.2.4 IN/RV for a selected period below:

(a) Select (click) "Receipt" query from menu.
(b) Select (click) "Internal Receipt".
(c) The internal receipt query will open. It will have three options. "Receipt", "Items"
and "Others"

327
(d) Click "Receipt"
(e) Click Select internal receipt vouchers screen will open
(f) Two options will be displayed "Voucher" and "others'
(g) Click "Voucher"
(h) Select period from Date 'from, to' option
(i) Select status "Registered, Fulfilled, closed, cancelled from status combo
(j) Click on "show"
(k) The selected IN/RV will appear in the screen
(l) Select the required IN/RV or row for selecting (refer procedure at Appendix D for
selecting non- continuous or non-continuous multiple records)
(m) Click "Ok" The selected IN/RVs will be displayed in the list box.
(n) Click on "show" All selected vouchers will be displayed in the grid at the bottom of
the screen. A message box indicating the number of records found will also be
displayed.
(o) To hide/unhide columns, sorting the data and print out refer procedure at Appendix
B.

328
 31.2.5 Select an IN/RV from GIG
(a) Perform action at (a) to (c) at para 43.2.4 above.
(b) Click "Items"
(c) Click (click here to select IN/RVs)
(d) Select search criteria (Material group from Material Group Combo in "REF/PART
No" tab OR Vocab from Vocab combo OR for particular voucher type % and voucher
Number in Ref/part No. Field
(e) Click on "show"
(f) The selected IN/RV will appear in the screen
(g) Select the required IN/RV or row
(h) Click "Ok" The selected IN/RVs will be displayed in the edit box.
(i) Click on "show" All selected vouchers will be displayed in the grid at the bottom of
the screen. A message box indicating the number of records found will also be
displayed.
(j) Click "Ok" to proceed.
(k) To hide/unhide columns, sorting the data and print out refer procedure at Appendix B.

32. MTV (Receipts of stores from other AF units)

Audit parameters in Linking receipt vouchers within AF (One AF unit to other) and auditing
receipt defined in AFLAM are summarized below.
(a) Linking of Receipts transactions will be carried out from entries in the receipt vouchers into
SSRCs and not vice-versa
(b) The store received is against the demand. If the receipt is against allotment by Command
HQrs/Air HQrs relevant letter number/authority and the purpose will be verified in audit
(c) Priority demand is indicated in the Voucher
(d) Store received under 'AOG' is not held in store. Such receipts should be cross-linked with
the IN/IV.
(e) The store received is scaled/authorized at consignees end.
(f) The authorized establishment of the item is not exceeded.
(g) The category of the stores as shown in the Issue voucher (copies received from consignor
LAOs (AF) is correctly BOC in the SSRC
(h) The class of stores as per the voucher is correctly shown in the SSRC
(i) Quantity actually received has been BOC in SSRC. In IMMOLS quantity actually received
will be BOC instead of quantity as per the voucher. The quantity actually received will be
cross linked with VIS/SIS (existing SIB)

329
 (j) In IMMOLS, where there is a discrepancy in the quantity system will automatically raise a
DR and the record displayed with a DR flag
(k) Where there is discrepancy in quantity DR has been raised and the DR particulars noted in
DR register.
(l) In respect of new items Rate/cost has been mentioned in the voucher and the same recorded
in the SSRC.
(m) Store received on loan, loan period, sanction of Competent authority, are mentioned in the
voucher. Loan receipt will be cross linked with 'Loan In Register'
(n) Consecutive EX/RV Number has been allotted
32.1 Linking/credit verification by selecting all MTV (receipt)
In IMMOLS/AUDOLS system automatically takes care of linking of the transaction with
the SSRC. Further casting report will also facilitates identifying error if any transaction for
the selected period is omitted in the SSRC.
NOTE 1: A Specific "Receipt Linking report" has been included in the proposal for software modification
/enhancement. In the meantime to link the MTV (Receipts) with the SSRC following procedure may
be followed: -
32.1.1 Linking by selecting all the MTV (Receipts)
(i) Select "Issue " query from menu
(ii) Click " Material transfer" Material transfer query screen will open.

330
(iii) There will be three options "Issue" "Item" and "others"
(iv) Click" issue"
(v) Click to select MTV. Select Material transfer voucher screen will open.

(vi) Select "Incoming" from status combo

(vii) Select date "From" "To" for the required period. Click on show. All the incoming vouchers
(external receipts from other AF units) for the selected period showing the Issue Voucher
Number of consignor and Receipt Voucher Number of consignee will appear inn the screen.
The particulars includes consignor, Particulars of store, Qty issued Quantity received and
BOC MTV (ISSUE Number and MTV (Receipt Number) apart from other information.
(viii) Take a print out as per the procedure defined at Appendix C

32.1.2 Alternate option for Linking by selecting all the MTV (Receipts)
(a) Select "Receipt" query from menu
(b) Click "External receipts". External receipt query screen will open.

331
(c) There are three options "Receipt", Items", Others"
(d) Click "Items" Select item query screen will open.

332
(e) Click (Click here to select the item)

(f) The Global Item Gallery screen will open.

(g) Select the required RV or row
(h) Click "Ok" The selected RVs will be displayed in the edit box.
(i) Click on "show" All selected vouchers will be displayed in the grid at the bottom of the
screen. A message box indicating the number of records found will appear.
(j) Click "Ok" to proceed.
(k) To hide/unhide columns, sorting the data and print out refer procedure at Appendix B )

32.1.3 Selecting a particular Issue voucher to locate its corresponding RV Number

(a) Perform action at (a) to (f) at 41.1.1 above
(b) Type/enter % and issue voucher Number
(c) Particulars of the Issue voucher showing the RV number will appear in the screen.

32.1.4 Select a particular RV

(a) Select (click) "Receipt" query from menu.
(b) Select (click) "External Receipt".
(c) The external receipt query screen will open.

333
 (d) It will have three options. "Receipt", "Items" and "Others"
(e) Click "Receipt"
(f) Select RV Type from RV type combo (RV Types are INT, EXT, EXTLNIN)

(g) Click (click here to select EX/RVs)

(h) External receipt voucher screen will open with two options "Receipt vouchers,
"Transfer vouchers"
(i) Click "Receipt Voucher"
(j) Type EX/RV number in the box "No"
(k) Select required EX/RV
(l) Click on "show"
(m) The selected EX/RV will be displayed
(n) OR Type document Number (% and RV Number) in the box "No"
(o) Click the required EX/RV or row for selecting (refer procedure at Appendix D for
selecting non- continuous or non-continuous multiple records)
(p) Click "Ok" The selected RVs will be displayed in the list box.
(q) Click on "show" All selected vouchers will be displayed in the grid at the bottom of
the screen. A message box indicating the number of records found will also be
displayed.
(r) Click "Ok" to proceed.
(s) To hide/unhide columns, sorting the data and print out refer procedure at Appendix
B)
NOTE 1: For Store transfer between AF units Select "INT", for outside AF select "EXT" and for Loan-
In Between AF units select "EXTLNIN"

32.1.5 Select RV from status combo and take print out

(a) Perform action at (a) to (g) at 44.1.4 above.
(b) Click "Transfer Voucher"
(c) Type packing Note Number or Invoice Number in "Packing Note/Invoice" number
field
(d) Select the status "Registered, Fulfilled, closed, cancelled" from "status combo"
(e) select the "period" from date from; to option
(f) Perform action at (k) to (r) at para 44.1.4 above

32.1.6 Select RV by consignor and doc sub type combo

(a) Perform action at (a) to (h) at 44.1.4 above.
(b) Select the status "Registered, Fulfilled, closed, cancelled" from "status combo"

334
 (c) Select the "period " from date from; to option
(d) Perform action at (k) to (r) at 44.1.4 above.

33. Discrepancies Return

In IMMOLS the quantity actually received is brought on charge instead of the existing
procedure the quantity vouched. Wherever there is discrepancy in quantity or quality system
will automatically highlight the transaction as "Likely DR". For the purpose of audit of
discrepancy return first Obtain a print out of EX/RV where highlighted "Likely DR" and
then carry out requisite audit

NOTE 1: Only discrepancy- In is generated. There is no Discrepancy Out in IMMOLS.

NOTE 2: When a DR is raised it will be get transmitted to consignor. If consignor accepts the
discrepancy, consignor will raise loss statement. If Consignor does not admit the DR matter will
be referred to Command HQrs/Air HQrs and Loss statement will be raised either by the consignor
or the consignee as per the decision by Command HQrs/Air HQrs.

NOTE 3: If an item other than as per the voucher is received the item actually received will be
BOC by means of CRV and the item as per the voucher will be shown as "Discrepancy" in IMMOLS.

NOTE 4: If category of stores actually received do not match with the category shown in voucher;
the stores as per the category actually received will be BOC by means of CRV and the stores as per
the category in the voucher will shown as "Discrepancy" in IMMOLS.

33.1 To select DR records by Voucher Number or DR number

(a) Select "others" from menu

(b) Click "Discrepancy return"

(c) The Discrepancy return screen will open.

(d) There are three options in the screen "Discrepancy Return", "Items", "Others"

(e) Click

(f) Discrepancy query screen will open.

(g) Again there will be two options " DR details" "MTV details"

(h) Click "DR details" for typing DR Number in DR Number field and selecting the DR.

(i) Click "MTV details" for typing MTV number (RV Number or IV number), consignor
from consignor combo and selecting the DR.

(j) Click on show

(k) Click OK to proceed

(l) To hide/unhide columns, sorting the data and print out refer procedure at Appendix B)

335
34. EX/RV (Receipts of stores outside AF)

Audit parameters in Linking receipt vouchers within AF (One AF unit to other) and auditing
receipt defined in AFLAM are summarized in Para 48 above.

34.1 Linking of EX/RVs

35. EX/RV (Receipt of stores from other services, PSUs etc.)

The audit parameters are same as explained in para 48 above.

36. Receipt Vouchers (local Purchase of stores, Equipment (MT Vehicles

etc) after repair)

In addition to audit parameters explained at para 48 following points will be seen in LP of

stores by consumer units.

(a) Only items urgently required have been purchased (The stores purchased from are not held
in store)
(b) The stores purchased from local market was not available in stock
(c) No LP was resorted when sufficient "Dues In" (Stores demanded from normal source of
supply) was available as per the SSRC.
(d) Equipment after repair has been returned within approved/prescribed Contract Loan period.
(e) Where stores/parts are replaced, the contractor returned old parts/stores, if not provided in
the contract otherwise, and Brought On Charge.
37. Linking of Local purchase voucher is to be carried out from the copy of A&I Note received from
PCDA (AF) Dehradun /CDA (AF) New Delhi/JCDA (AF) Nagpur. Carrying out linking/credit
verification directly from the SSRC would not appropriate. For this purpose first locate the RV
number from SIS and the note the RV number in the A& I Note. Then with reference to RV
number verify the Credit in SSRC.
38. CRV
When stores received without a voucher will be BOC by AF units under CRV (Certified receipt
voucher) CRV in IMMOLOS? In addition to Audit parameters defined in para 6 (a) to (n), following
points will be seen:
(a) Particulars of CRV has been entered in CRV register
(b) CRV has been linked with original voucher and discrepancies if any dealt with as DR/Loss
CRVs Out standing for long has been objected to in audit.

38.1 Following are the procedure for viewing a particular CRV and take print out
(a) Select (click) "Receipt" query from menu.
(b) Select (click) "Certified Receipt".
(c) The internal receipt query will open. It will have three options. "Receipt", "Items" and
"Others"

336
 (d) Click "Receipt"
(e) Select RV Type from RV type combo (RV Types areINT,EXT,EXTLNIN)

(f) Click (click here to select CRVs)

(g) CRV screen will open with two options "Vouchers, "Others"
(h) Click " Voucher"
(i) Type CRV number in the box "No"
(j) Select required CRV
(k) Click on "show"
(l) The selected EX/RV will be displayed
(m) OR Type document Number (IN/RV Number) in the box "No"
(n) Click the required IN/RV or row for selecting (refer procedure at Appendix D for selecting
non- continuous or non-continuous multiple records)
(o) Click "Ok" The selected IN/RVs will be displayed in the list box.
(p) Click on "show" All selected vouchers will be displayed in the grid at the bottom of the
screen. A message box indicating the number of records found will also be displayed.
(q) Click "Ok" to proceed.
(r) To hide/unhide columns, sorting the data and print out refer procedure at Appendix B )

39. STOCK TAKING

Stock taking of all stores including stocking taking of stores held on inventory in Units/
Formations is to be carried out by the executive authorities in accordance with the instructions
contained in Chapter 25 IAP 1501. Units other than equipment depots are responsible that
stock of all equipments held on charge periodically.
39.1 To carry out the stock taking, stock taking sheet F405 are raised to record the result of
physical check of stores and stores held in tally card/ SSRC and to declare surplus/
deficient and vice- versa on a particular date. In case of deficiencies the particular
voucher Viz. IAFQ403 & 406 are raised to set right the balances with the accounting
record whilst themselves serve the purpose to bring on the charge the surpluses.
(a) Stock taking sheet will be checked to see that the stock taking as laid down in the
orders is dully carried out by the administrative authorities within scheduled date/
date of completion has been adhered to.
(b) That all the discrepancies detected between book and ground balances have been
properly investigated and the deficiencies if any have been dealt with under the order
of CFA without undue delay and adjustment voucher has been raised accordingly.
(c) Surpluses if any have been credited to the Govt.
(d) Stock taking not completed/ not done within scheduled date should be placed under
objection.

337
 Following are the procedure for carrying out the audit checks of stock taking in
AUDOLS. There are two options available in AUDOLS in stock taking.
„ Stock taking done.
„ Stock taking not done.

39.1.2 For performing query "stock taking done"

(i) Click (Select) on "OTHERS" in menu bar
(ii) Click "Stock taking"
Following screen will be displayed

(iii) There are three options " Stocktaking voucher", "Item", and "period"

(iv) Click the stock taking voucher screen will open as follows.

338
(v) Select the required search criteria/ select period documents status and document type
from the combo box.
(vi) Click on SHOW (Full record meeting the search criteria will be displayed on the
screen)
(vii) Select required numbers of rows continuous or non continuous for multiple record.
(viii) Click OK (Stock taking voucher screen will close and the selected record will be
displayed in selected STV list box of Stock taking query screen.
(ix) Click on SHOW (Full record including deficiencies and surplus will be displayed on
the screen).
(x) Click on PRINT and take the print out .
(xi) Cross link deficiencies with Loss statements and surplus with CRVs.

39.2 For stock taking not done perform following query

(i) Click on OTHERS on menu bar.
(ii) Select Not done. (Stock taking not done query screen will open as follows).

(You can specify such criteria Viz. Item, Period wise)

(iii) Select "period" Screen will open as follows

339
 (iv) Select year from "year picker"
(v) Select Quarter (First quarter, Second Quarter, Third quarter OR Fourth quarter)
(vi) Click on SHOW (Full record meeting the search criteria will be displayed on the
screen).
(vii) Click PRINT and take print out
(viii) Object those items where stock taking due but not done

40. Discr
Discreepanc
pancyy Retur
Retur n
eturn

When the discrepancies revealed on receipt of consignment either inland or foreign stores in
regard to the store vouched and physically received i.e. in qty or in category a report is raised
to take up the matter with the consignor indicating among other things date of receipt of
consignment at depot/ Unit, date of packing, suitable explanation for delay if any between
the date of receipt and date of opening the consignment.

NOTE 1: In IMMOLS environment, stores physically received will be brought on charge and the
system raise a DR automatically where there is discrepancy between the quantity and quality of
stores vouched and physically received.

340
NOTE 2: Raising of Loss statements along- with DR is dispensed with. Under IMMOLS Loss
statement against a DR will be raised after admitting the DR either by the consignor or by the
consignee. In case of dispute the decision of Air HQrs will be final. The Loss statement so raised
will not be for SSRC/Tally card action.

40.1 Following are the audit checks:

(i) Discrepancies in quantity or quality have been adjusted by raising Loss statements and
the loss statement is cross-linked with the DR.

(ii) There is no undue delay in adjustment of DRs

(iii) List out outstanding DRs place under objection

(iv) Where stores physically received more than that vouched such surplus will be brought
on charge.

(v) A special study will be carried out to check large scale and repetitive discrepancies
against a particular store or particular consignor.

40.2 Following are the procedure to perform Discrepancy Return query in AUDOLS.

(i) Click on OTHERS in menu bar.

(ii) Select DR report (DR return query screen will open as follows).

341
 (iii) There are three options Discrepancy Return, Item and others

(iv) Select Discrepancy Return

(v) Click to select the DR voucher. (Select DR voucher screen will open as
follows)

(vi) Select the Period from Date picker.

(vii) Click on SHOW. (Record meeting the DR raised during the period will be displayed)

(viii) Click required DRs from the row for selecting the record. (You can select continuous or
non-continuous record for multiple record).

(ix) Click on OK (selected records will be displayed in the select DR return voucher list
box of DR return query screen).

(x) Click on SHOW. All records will be displayed in the grid.

(xi) Click on PRINT to take the print.

41. DUES IN/ DUES OUT

Dues in and out are generally required to ascertain the net requirement of the items/ stores at
the time of provisioning/procurement, which becomes a source of information to work out

342
the net qty of stores required at the time of acceptance of necessity for IFA in concurring the
IFA proposal.

41.1 DUES IN :- It is the demand placed at different EDs/BRDs on local vendors/foreign countries
for which supply orders have been placed and requirement is likely to meet or we can say
"Demands are under pipeline".
41.2 DUES OUT :- Demands received from other units/formation but could not met/ likely to
met.
41.3 For carrying out DUES IN audit perform following queries
(i) Click OTHERS in menu bar.
(ii) Select MISC
(iii) Click DUES IN
(Query DUES IN Screen will open as follows)

(iv) Click to select the item GIG (DUES IN Query screen will open as follows).

343
 (v) Select the vocab section and ref/Part Number, item code, description etc.
(vi) Click on SHOW (Record meeting the search criteria will be displayed on the grid)
(vii) Click on the required no. of row for selecting the record (you can select continuous or
non continuous multiple records)
(viii) Click on OK. (DUES IN query screen will open).
(ix) Click on SHOW (Full details with Reference No., Description, Central dues in/ Local
Dues in DOQ/Qty etc will be displayed on the screen).
(x) Click on PRINT and take the print out.
41.4 For carrying out DUES OUT audit checks perform following queries
(j) Click OTHERS in menu bar.
(ii) Select MISC.
(iii) Click DUES OUT
(Query DUES OUT Screen will open as follows)

344
(iv) Click to select the item GIG (DUES OUT Query screen will open as follows).

345
 (v) Select the vocab section and ref/Part Number, item code description etc
(vi) Click on SHOW (Record meeting the search criteria will be displayed on the grid)
(vii) Click on the required row for selecting the record (you can select continuous or non
continuous multiple records)
(viii) Click on OK. (DUES OUT query screen will open.
(ix) Click on SHOW (Full details with Reference No., Description, Central dues in/ Local
Dues in DOQ/Qty etc will be displayed on the screen.
(x) Click on PRINT and take the print.

42. STOCK INWARD SHEET (SIS)

In order to ensure that receipts are easily located, Transport section/R&D maintain a manuscript
register recording details of In Coming Consignment, the register shows the railway receipt
number, convoy note number/cargo manifesto number, wagon number/Air Craft No., Case
marking and receipt voucher number etc.

The register is subject to general scrutiny to see that:-

(a) Consignments received are opened and brought on charge promptly.

(b) That receipt voucher number is quoted against each entry.

(c) In the case of foreign consignment, the register is made by the transport/R&D section which
shows particulars regarding original case marking, onward dispatch marking of Unit Ships
name/Air Craft No., Date of receipt, CRV No., Packing A/C No., Date of receipt, Returnable/
Retainable, Copy of packing A/Cs, Date passed on to Account Section and hastening action
taken to obtain packing account where not received.
(d) The register is subjected to general scrutiny to see that all consignment received has been
taken on charge and adequate action has been taken to obtain packing account where not
received before the receipt of consignment.
(e) Whether discrepancy report has been raised and in case there is any discrepancies between
qty., category vouched by the consignor and actual receipt, if so the out come of the DR will
be seen from discrepancy return report.
42 .1 For audit of Store Inward Sheet (SIS) perform following queries
(i) Click others'Transportation'SIS

346
 (SIS Query screen will open.)

(ii) Click to select the SIS No. (Selected SIS Query screen will open).

347
 (iii) Select the search criteria and SIS No. if known and period
(iv) Click on SHOW required data such as SIS No., SIS Date, SIS prepared etc. will be
displayed on the grid.
(v) Select the required row continuous or non continuous for multiple or non multiple
record.
(vi) Click on OK (SIS query screen will close and selected record will be displayed in
selected SIS list box)
(vii) Click on SHOW (Required data will appear in the grid)
(viii) Click on PRINT and take the print.

43. STOCK OUTWARD SHEET (SOS)

SOS is prepared to record particulars of stores desptached out such as; Document number,
Ultimate consignee, EX/IV/ MTV (EX/RV of consignee, Packing note No., Weight, Volume
and discrepancy report if any raised by the consignee etc.).

43.1 For audit of SOS perform following queries

(i) Click others'Transportation'SOS

(SOS Query screen will open.)

348
(ii) Click to select the SOS No. (Selected SOS Query screen will open).

(iii) Select the search criteria and SOS No. if known and period

(iv) Click on SHOW required data such as SOS No., SOS Date, SOS prepared etc.
will be displayed on the grid.

(v) Select the required row continuous or non continuous for multiple or non multiple
record.

(vi) Click on OK (SOS query screen will close and selected record will be displayed
in selected SOS list box)

(vii) Click on SHOW (Required data will appear in the grid)

(viii) Click on PRINT and take the print.

349
44. VEHICLE INWARD SHEET (VIS)

Existing Transport Inward Sheet (TIS) has been renamed as VIS in IMMOLS

44.1 So far as audit checks are concerned it relates with SIS. As record procedures in AUDOLS
is concerned the same is as under:-
(i) Click on OTHERS'Transportation'VIS (VIS Query screen will open)

(ii) Click on to select VIS No. (Select VIS No. query screen will open).

350
 (iii) Select the search criteria and VIS No. if known or period.
(iv) Click on SHOW (Required date such as VIS No., date proposed etc will be displayed
on the grid).
(v) Select the required row continuous on non continuous for multiple or non multiple
records.
(vi) Click on OK (Select VIS No. Query screen will close and selected record will be
displayed in the selected VIS list box of VIS query screen).
(vii) Click on SHOW (Required data will appear in the grid).
(viii) Click on PRINT to take the print.

45. VECHICLE OUT SHEET (VOS)

Stores transferred/dispatched to other units through various modes such as by transport, speed
post, Courier etc. is known as VOS. Earlier it was known as Truck Out Sheet (TOS). VOS
No. is generated automatically whereas Logistic Staff will fill the following information i.e.
Intermediate consignee, weight/Volume, Carrier No., Mode of Dispatch etc.

45.1 To carry out the checks on VOS the following are the procedure to be adopted in AUDOLS.
(i) Click on OTHERS'Transportation'VOS (VOS query will open)

351
 (ii) Click on to select the VOS No. (Selected VOS No. query screen will
open). You can specify any such criteria Select the period.

(iii) Click on SHOW (Record meeting such criteria will be displayed on the screen).
(iv) Click on the required row, continuous or non continuous for multiple record.
(v) Click on OK (Select VOS query screen will close and the selected record will be
displayed in the selected VOS list box of VOS query screen).
(vi) Click on SHOW (The record meeting the such criteria will be displayed in the grid).
(vii) Click on PRINT to take the print.

46. LOSSES AND DAMAGES

Before implementation of IMMOLS/AUDOLS losses and damages occurred in units/formation

were registered in Accts Section. In manual audit the loss statements raised pending
finalization of COI of otherwise were termed as Provisional Loss Statement and on finalization
of COI etc. the provisional loss statement were converted to final loss statement and there
regularization was watched in Internal Audit.

352
Consequent on the implementation of AUDOLS provisional loss statement are termed as
loss statement raised but are outstanding for want of sanction/regularization from CFA whereas
final loss statements are those which have been regularized or sanction have been accorded
by the CFA.

In AUDOLS the report shows the loss No./Date, Its status, Vocab Section and status of loss
statement etc. and net amount loss and CFA etc.

46 .1 To create the report in AUDOLS the procedure is as under :-

(i) Click on OTHERS à LOSS & DAMAGES (Loss and damages query screen will
open).

(ii) Select the required search criteria Viz. Loss & Damages/Items/others and select PLS
or FLS as per requirement.

(iii) Click on (Select losses and damages voucher screen will open. Select the
require period and type of loss and document type.

353
 (iv) Click on SHOW. The required data will be displayed in the grid.
(v) You can select continuous or non continuous row for multiple records.
(vi) Click on OK (Select loss statement voucher query screen will close and the selected
record will be displayed in the selected loss & damages voucher list box of loss and
damages query screen).
(vii) Click on SHOW (The full record of loss and damages Viz. Loss statement No. Amount
of Loss, Present position etc. will be displayed in the grid).
(viii) Click on PRINT to take print.

47. SHELF LIFE AUDIT

For shelf life Please see Para

48. AUDOLS software provides for generation of following specific reports

(a) Authorization Dependency report
(b) Casting report
(c) Conversion report

354
 (d) RV source of supply
(e) Item transaction report

49. Authorization Dependency Report

For Authorization Dependency report, please see para 32 Chapter- IV

50. Conver
Conv sion R
ersion Reepor ts
ports

For conversion report please see para 33 Chapter- IV

51. Casting Reports

For casting report please see para 29 Chapter- IV

52. RV SOURCES SUPPLY

The report is generated to locate the EX/RV No. of the stores received through local purchase,
Central purchase or from Army Ordnance Factory, CIS, DGOF, Govt. Sector, Indigenous
source etc.
52.1 The following is the procedure to take the receipt voucher No. in the
AUDOLS.
(i) Click on REPORTS'RV SOURCES SUPPLY (RV's source of supply report will open.

355
 (ii) Select the period type of purchase etc.
(iii) Click on OK (The data will be displayed on the screen)
(iv) Take the RV no. on required basis.

53. Items Transaction Report

The report will print all transactions for an item viz., issue, receipt etc. In the specified period
with opening and closing balances. This report is similar to the existing Tally card. This
report can be taken for an item, for a group of item or for all items in stores.

53.1 Following is the procedure to generate the report in AUDOLS.

Click reports in menu bar and select the item transaction report

The items transaction report will open

You can specify the search criteria in any or all the fields. Perform the following steps to
view and print the report.
(i) Select store from the list of stores given in store combo box. (Leave it blank if you want to
see records for all stores)

356
(ii) Select the group of items from group combo box. ( Leave it blank if you want to see records
for all item groups )
(iii) Select vocab from vocab combo box (Leave it blank if you want to see records for all
vocab)
(iv) Enter reference/ part No of the items for which you wants to see transaction details. (Leave
it blank if you want to see records for all ref/ part No)
(v) Select transaction period from & to date picker controls. These dates specify dates on which
transaction has been made.
(vi) Click on 'OK' the report will open and you can take the print out of the report.

357
 APPENDIX - A

INSTALLING /UNINSTALLING AUDOLS APPLICATION

To install the AUDOLS application into your system (Computer)

a) Put the CD into CD Drive. AUDOLS set up will automatically start or click on set up. EXE
to initiate the installation of installation process .

b) Click on the next > button.

c) Type your name, company name and the serial number and click on next >button.

d) In the choose destination location dialogue click on the browse .. button and select drive and
folder where you wants to install the AUDOLS application

e) Click on next > button

f) In the sect programme folder dialogue you can specify the programme folder name that will
be in the strat menu.

g) Click on the next > button

h) Now AUDOLS set up will start. Copying AUDOLS application into your system.

i) Click on finish button AUDOLS set up will restart the system

j) Remove the CD from CD Drive.

k) When system re-start you will find a AUDOLS application icon on to the Desktop either
Double click on it or select start > AUDOLS> Audit on line system to run the AUDOLS
application or select > Start >Programs > AUDOLS.

TO UNINSTALL THE AUDOLS APPLICATION

a) Select start >AUDOLS > Uninstall AUDOLS from the start menu
b) It will confirm whether you want to un-install the AUDOLS Application
c) Click on Yes button.
d) It will confirm whether you want to delete shared file.
e) Click No to All. AUDOLS application will automatically remove from the computer.

358
 APPENDIX - B

HIDING/UNHIDING COLOUMNS

After the records are displayed in the grid. You can customize the grid columns according to your
requirement. You can hide/unhide the columns that you do not want to include in the grid.

To hide a column, do the following:

a) Select the required column by clicking the left mouse button on its header
b) Click on the right mouse button and select Hide. The selected column will disappear.
OR
c) Click on the right mouse button and select Hide/Unhide Columns. A dialog box showing a
list of all the columns in the grid will appear.
d) Clear the checkbox corresponding to the column you want to hide.
e) You can also clear multiple checkboxes

Click on (APPLY) button

Click on (CLOSED) The unchecked column(s) will be hidden.

To unhide a column, do the following:

a) Click on the right mouse button and select Hide/Unhide. A dialog box showing a list of all
the column in the grid will appear

b) Select the checkbox corresponding to the column you want to unhide

c) You can also select multiple checkbox

Click on (APPLY)

Click on (CLOSED) The checked column (s) will appear.

359
 APPENDIX - C

PRINTING RECORDS

After the records are displayed in the grid, you can print the search criteria and the record in a pre-
defined format. You can PRINT all the coloumn present in the grid or some selected coloumns.
Click on Print to print the query criteria and all the coloumn in the grid.

2. Non required columns can be hidden as per appendix B.

3. To print the selected columns, hide the columns that you don't want in the print out; for
example in Internal issue query to print columns ( Document No , Document Date, Vocab,
Reference/Part No ,Description ,DOQ,Class consignor / Store code , Issued Quantity , Scale
quantity, RV Nos) Hide other columns and click print .

360
 APPENDIX - D

SELECTION OF ITEMS/ R
ROOWS

(i) Click on required row No. for selecting the record.

(ii) If you wants to select continuous multiple records, do one of the following

--- Keep the left mouse button pressed and drag it till it covers the required rows
--- Keep the < Shift >Keep press while you click the left mouse button on the required rows
(iii) If you want to select non-continuous multiple records keep the <Ctrl>Key pressed while you
click the left mouse button on the required rows.

(iv) Click on OK

361
 APPENDIX - E

CHANGE PASSW
PASSW ORD
ASSWORD

To change password, you must access the changed password screen through the following menu
options

Tools > Change password

To change password:-

a) Enter new password in new password field.

b) Enter same password in confirm password field.

c) Click OK. A Message box asking whether you want to save your new password will be
displayed

d) Click yes a message box indicating that your new password successfully will be displayed.

362
 APPENDIX - F

SOR TING RECORDS

SORTING

After the records are displayed in the grid, you can sort the data in ascending or descending order

To sort the data in a column, do the following

a) Select the required column by clicking the left mouse button on its header.

b) Click on the right mouse button and select one of the following

o Sort Æ Ascending

o Sort Æ Descending

The data in the grid gets sorted according to the column order you have selected

363
 APPENDIX - G

No.

Office of the LAO (AF)

……………………………………………….

……………………………………………….

Dated

To

The AOC/CO

……………………….

……………………….

Subject: Audit through Computer (AUDOLS): Initial Audit.

1. Initial audit, the first stage of implementation of AUDOLS, in unit…………………….has

been completed on………………. In this exercise the Last Line Balances in manual Tally cards
as on the prescribed cut off date……………………has been linked with the balances as per the
print out of balances in IMMOLS. Total number of tally Cards held as on the cut off date and those
available in GIG has been reconciled and the position is furnished below:-

Total Number of Live Total number of Total SSRC

SSRCs maintained manually SSRC available in GIG Not in GIG
as on the cut off date

2. A conference with Station Commander has been held on…………………….. Wherein the
important points noticed during the initial audit and outstanding points have been discussed. An
objection statement containing …………………objections / NIL Objection is enclosed. Replies
to the objections may please be furnished to audit on priority basis.
3. Replies to the objections may please be furnished to audit priority basis.
( )
LAO (AF)………………………….

364
 APPENDIX - H

No.

Office of the LAO (AF)

……………………………………………….

……………………………………………….

Dated

To

The AOC/CO

……………………….

……………………….

Subject: Audit through Computer (AUDOLS): Audit Supervised Parallel Run.

1. Audit Supervised Parallel Run, the 2nd stage of implementation of AUDOLS, has been
conducted in unit…………………… for the period of accounts
from……………………to…………………….

2. During audit supervised parallel run item transaction has been checked both in manual SSRC
and in IMMOLS and found matched except those under objection

3. A conference with Station Commander has been held on……………………..,wherein the

important points noticed during the audit supervised parallel run, shortcomings in the system
transactions and other irregularities have been discussed. An objection statement containing
…………………objections / NIL Objection as per details below. Replies to the objections may
please be furnished to audit on priority basis.

4. Formal 'e' clearance certificate will follow from PCDA (AF) Dehradun.

( )
LAO (AF)………………………….

Details of objections pertaining to audit through AUDOLS

365
 APPENDIX-XIV

AUDOLS MANUAL Part - II (EQUOLS)

1. E-Audit

Following audit functions are covered in AUDOLS Inventory Module/EQUOLS: -

(i) A-IN-U ledger - F (F) 1515

(ii) Air Frame - F (Q) 420

(iii) Spl Vehicle - F (Q) 420

(iv) Air Man Clothing card - F (Q) 466

(v) Flying Clothing card - F (Q) 443B

(vi) Loans Account

(vii) Reports - List of Inventories

List of Inspection Schedule

Inventory Inspection List

Inventory Item Transaction

Inventory of Kit

Flying Clothing Card

List of Inventories not checked

Advance TD entitlement

Detailed procedure is explained in succeeding Chapters.

*****

366
 Cha pter - 2
Chapter

2. LOG ON TO In
Invventor
entoryy Module/EQ UOLS
Module/EQUOLS

Since the provision for audit of inventories has been provided in AUDOLS, no separate password
is required.

However provision for generating the reports except LOANS has not been provided in AUDOLS,
therefore the same can only be generated through EQUOLS with the permission of System
Administrator for which separate Password is required.

To Log on to AUDOLS, double click the AUDOLS Icon on the Desktop. The following screen will
open with the Message "To run the application properly it is required to install the store procedure.
Would you like to install the store procedure now?" Click on 'Yes'.

Fig 1

367
Message will appear as Stored Procedures successfully installed. Click on OK. Then Logon
Information Screen will open.

Fig 2

Enter the Password. Click on OK.

368
AUDOLS Screen will open with the Menu Options Including Inventory Menu as figure bellow.

Fig.3

369
3. PR OCEDURE OF PERFORMING Q
PROCEDURE UERIES
QUERIES

Click on inventory in menu bar you will have details of all the documents. As per screen

Fig.4

Select the desired document you want to audit VIZ.

(i) A-IN-U ledger - F (F) 1515

(ii) Air Frame - F (Q) 420

(iii) Spl Vehicle - F (Q) 420

(iv) Airmen Clothing card - F (Q) 466

(v) Flying Clothing card - F (Q) 443B

*****

370
 Cha pter 3
Chapter

4. AR TICLE IN A-IN-U LEDGER- F(F) 1515

ARTICLE

Go to INVENTORY in Menu bar and click -> A-in-U ledger. "Select Inventory" Screen will
appear.

Fig 5

You will have the following options: -

Main, Inventory Holder Details Other Details

4.1 MAIN: We may select desired section, document status (whether approved/not approved,
registered etc.) if known or leave the boxes blank and select the period desired and disable
the date, click on small box which indicates P on the right hand side of 'To date' column.

4.1.1 Click on show. Following figure will appear: -

371
 Fig 6

4.1.2 All the details showing inventory type document No. Document Status, Registration date,
Section, Service No., Rank, Name, AC /Spl, Transfer from, Transfer to, Etc. will appear.
NOTE:-If no date is required then 'disable' the date by clicking on small box which indicates 'tick
mark' on the right hand side of 'To date' column.
Select the required row (one or More) by clicking left key of the mouse, then click right key of the
mouse you will have the option: - AUDIT INVENTORY.

Fig 7

372
4.1.3 Click on AUDIT INVENTORY.
The following screen will appear:-

Fig 8

373
You will have options: -

Main, Holdings, Transactions, Audit /Transfer, Section History.

(By default the Grid indicates 'Main'.)

4.1.3(a)HOLDINGS ARE TO VERIFY THAT THE ITEMS/STORES HELD WITH THE

INVENTORY HOLDER ARE WITHIN SCALE/AUTHORISATION.
(i) Click on Holdings: - The following Figure will appear on the screen with the records
satisfying the query parameters.

Fig 9

374
(ii) Click on calculates holdings at the bottom of the figure: -The following figure will appear.

Fig 10

All reds shows excess holding and yellows denotes less than authorization/scale. The excess
holding is to be placed under objection.

4.1.3(b) To view the transaction details i.e. voucher No. Under which the items has been received
or return.

(i) Click on transactions.

The following figure will appear on the screen with the records

Satisfying the query parameters.

375
 Fig 11
(ii) As facility of multi screening is available in AUDOLS you can audit the Transactions w.r.t
issue & receipt vouchers from issue & receipt option or by taking the print out of vouchers
4.2 Inventory holder details
In case we select inventory holder details the following figure will appear:-
(You can only select the inventory if service No., Rank & Name is known).

Fig 12

376
(i) Click on Show.
The following figure will appear:-

Fig 13
(ii) Then click right button of mouse, the option AUDIT INVENTORY will appear.

Fig 14

377
(iii) Click on AUDIT INVENTORY

The figure will change as under:

Fig 15
(iv) To verify the further details action as mentioned in Para 14.1 and onward will SUOMOTO
to be followed.

378
4.3 After completion of Audit of particular inventory, CLICK ON AUDIT TRANSFER for
audit remarks.
The following screen will appear:

Fig 16

i) Click to see previous Auditor's remarks

ii ) Select the Audit Type (Regular or Transfer)

iii ) Enter Audit Remarks.
iv) Click on Save Remarks. On successful Audit a message " RECORDS HAVE BEEN
SUCCESSFULLY SAVED" will appear.

*****

379
 Cha pter - 4
Chapter

5. AIR FRAME F(Q) 420 :-

Audit of F (Q) 420 Inventory is to verify all the receipts & Issues of Air Frame items class A & B
Go to INVENTORY in Menu bar and click -> AIR FRAME F (f) 420. The following figure will
appear.

Fig-17

You will have the following options: - Main, Inventory Holder Details, Other Details

5.1 MAIN: We may select desired section, document status (whether approved/not approved,
registered etc.) if known or leave the boxes blank and period desired and disable the date,
click on small box which indicates 'tick mark' on the right hand side of 'To date' column.

380
 5.1.1 Click on show.

Fig-18

5.1.2 All the details showing inventory type document No. Document Status, Registration date,
Section, Service No., Rank, Name, AC /Spl, Transfer from, Transfer to, Etc. will appear.

NOTE:-If no date is required then 'disable' the date by clicking on small box which indicates 'tick
mark' on the right hand side of 'To date' column

381
Select the required row by clicking left key of the mouse, then click right key of the mouse you will
have the option:- AUDIT INVENTORY.

Fig-19

382
5.1.3 Click on AUDIT INVENTORY.

The following screen will appear:-

Fig-20

You will have options: -

Main, Holdings, Transactions, Audit /Transfer Section History

5.1.3(a) HOLDINGS ARE TO VERIFY THAT THE ITEMS/STORES HELD WITH THE
INVENTORY HOLDER ARE WITHIN SCALE/AUTHORISATION.
(i) Click on Holdings: - The following Figure will appear on the screen with the records satisfying
the query parameters.

383
 Fig 21

(ii) Click on Calculates Holdings at the bottom of the figure:-The following figure will appear.

Fig 22

384
All reds shows excess holding and yellows denote less than authorization/scale. The excess holding
is to be placed under objection.

5.1.3(b) To view the transaction details i.e. voucher No. Under which the items has been received
or return click on transactions.

The following figure will appear on the screen with the records satisfying the query parameters.

Fig 23

As facility of multi screening is available in AUDOLS you can audit the Transactions w.r.t issue &
receipt vouchers from issue & receipt option or by taking the print out of the vouchers.

385
5.2 Inventory holder details

In case we select inventory holder details the following figure will appear:- (You can only
select the inventory if Service No., Rank & Store is known).

Fig 24

(i) Click on Show.

The following figure will appear:-

386
 Fig 25

ii) Then click right button of mouse, the option AUDIT INVENTORY will appear.

Fig 26

387
(iii) Click on AUDIT INVENTORY

The figure will change as under:

Fig 27

388
 (iv) To verify the further details action as mentioned in Para 15.1 and onward will SUOMOTO
to be followed.
5.3 After completion of Audit of particular inventory, CLICK ON AUDIT TRANSFER for audit
remarks.

The following screen will appear:-

Fig 28
i) Click …. to see previous Auditor's remarks
ii ) Select the Audit Type (Regular or Transfer)
iii ) Enter Audit Remarks.
iv) Click on Save Remarks. On successful Audit a message " RECORDS HAVE BEEN
SUCCESSFULLY SAVED" will appear.

*****

389
 Cha pter - 5
Chapter

6. Special Vehicle F(Q) 420 :-

ehicle

Audit of F (Q) 420 Inventory is to verify all the receipts & Issues of Air Frame items class A
&B

Go to INVENTORY in Menu bar and click -> AIR FRAME F (f) 420. The following figure
will appear.

Fig 29

You will have the following options: - Main, Inventory Holder Details, Other Details
6.1 MAIN: We may select desired section, document status (whether approved/not approved,
registered etc.) if known or leave the boxes blank and period desired and disable the date,
click on small box which indicates 'tick mark' on the right hand side of 'To date' column.

390
6.1.1 Click on show.

Fig-30
6.1.2 All the details showing inventory type document No. Document Status, Registration date,
Section, Service No., Rank, Name, AC /Spl, Transfer from, Transfer to, Etc. will appear.

NOTE:-If no date is required then 'disable' the date by clicking on small box which indicates 'tick mark'
on the right hand side of 'To date' column

391
 Select the required row by clicking left key of the mouse, then click right key of the mouse you will
have the option:- AUDIT INVENTORY.

Fig-31

392
6.1.3 Click on AUDIT INVENTORY.
The following screen will appear:-

Fig-32

You will have options: -

Main, Holdings, Transactions, Audit /Transfer Section History
6.1.3(a) HOLDINGS ARE TO VERIFY THAT THE ITEMS/STORES HELD WITH THE
INVENTORY HOLDER ARE WITHIN SCALE/ AUTHORISATION.

393
 (i) Click on Holdings: - The following Figure will appear on the screen with the records satisfying
the query parameters.

Fig-33
(ii) Click on Calculate holdings at the bottom of the figure:-The following figure will appear.

Fig-34

394
 All reds shows excess holding and yellows denotes less than authorization/scale. The excess
holding is to be placed under objection.

6.1.3(b) To view the transaction details i.e. voucher No. Under which the items has been received
or return click on transactions.

The following figure will appear on the screen with the records satisfying the query parameters.

Fig 35

As facility of multi screening is available in AUDOLS you can audit the Transactions w.r.t
issue & receipt vouchers from issue & receipt option or by taking the print out of the vouchers.

395
6.2 Inventory holder details

In case we select inventory holder details the following figure will appear:- (You can only
select the inventory if Service No., Rank & Store is known).

Fig 36

(i) Click on Show.

The following figure will appear:-

Fig 37

396
(ii) Then click right button of mouse, the option AUDIT INVENTORY will appear.

Fig 38

397
(iii) Click on AUDIT INVENTORY
The figure will change as under:

Fig 39

To verify the further details action as mentioned in Para 16.1 and onward will SUOMOTO to
be followed.

398
6.3 After completion of Audit of particular inventory, CLICK ON AUDIT TRASNFER for
audit remarks.

The following screen will appear:-

Fig 40

i) Click to see previous Auditor's remarks

ii ) Select the Audit Type (Regular or Transfer)

iii ) Enter Audit Remarks.

iv) Click on Save Remarks. On successful Audit a message " RECORDS HAVE BEEN
SUCCESSFULLY SAVED" will appear.

*****

399
 Cha pter - 6
Chapter

7. AUDIT OF AIRMEN CL
CLOOTHING CARDS : F (Q)466:-

Audit of F (Q) 466 is to verify the items issued to particular inventory holder are on due date
and holdings are within scale.

To audit F (Q) 466 following steps are required.

Click INVENTORY in Menu bar and select -> AIRMEN CLOTHING CARDS : F (Q)466 :-
The following figure will appear.

Fig 41

You will have the following options: -

400
Main, In
Invventor
entoryy Holder Details; Other Details

7.1 MAIN: You may select desired section, document status (whether approved/not approved,
registered etc.) if known or leave the boxes blank and period desired.

7.1.1 Click on show. Following Figure will appear.

Fig 42

7.1.2 All the details showing inventory type document No. Document Status, Registration date,
Section, Service No., Rank, Name, AC /Spl, Transfer from, Transfer to, Parent Sql/Inventory
No. Parent inventory No etc. will appear.

NOTE:-If no date is required then 'disable' the date by clicking on small box which indicates
'tick mark' on the right hand side of 'To date' column

401
Select the required row by clicking left key of the mouse, then click right key of the mouse you will
have the option: - AUDIT INVENTORY.

Fig 43

402
7.1.3 Click on AUDIT INVENTORY.

The following screen will appear: -

Fig 44

You will have options: -

Main, Holdings, Transactions, Audit /Transfer Section History.

7.1.3(a) HOLDINGS
a) To verify the holdings whether clothing items are held within scale. Or are in excess of
scale
Click on Holdings: -

403
 The following Figure will appear on the screen with the records satisfying the query
parameters.

Fig 45

All reds show excess holding and yellows denote less than authorization/scale. The excess holding
is to be placed under objection.

7.1.3(b) To view the transaction details i.e. voucher No. Under which the clothing items has been
received to the inventory holder or return by him click on transactions.

404
 The following figure will appear on the screen with the records satisfying the query parameters.

Fig 46

The transactions of issue and receipt of clothing items are automatically being transferred to
EQUOLS, however, you can verify the issue and receipt transactions through vouchers from issue
& receipt option by the facility of multi screening available in AUDOLS or by taking the print out
of the vouchers

405
7.2 Inventory holder details

In case you select inventory holder details, the following figure will appear:

Fig 47

(You can only select the inventory if service No., Rank & Store is known.)

(i) Click on Show. Following Figure will appear.

Fig 48

406
 (ii) Click right mouse, the option AUDIT INVENTORY will appear.

(iii) Click on AUDIT INVENTORY

The figure will change as under;

Fig 49

To verify the further details action as mentioned in Para 17.1 and onward to be followed Suo Moto.

407
7.3 After completion of Audit of particular inventory, CLICK ON AUDIT TRANSFER for
audit remarks.

The following screen will appear: -

Fig 50

i) Click to see previous Auditor's remarks

ii) Select the Audit Type

iii) Enter Audit Remarks

iv) Click on Save Remarks. On successful Audit a "message RECORDS" HAVE B E E N

SUCCESSFULLY SAVED ' will appear.

408
 Cha pter - 7
Chapter

8. AUDIT OF FLYING CL
FLYING OTHING CARDS :F(Q)443B
CLO

Audit of F {Q} 443B is to verify the FLYING clothing items issued to particular inventory
holder are on due date and holdings are within scale.

To audit F {Q} 443B following steps are required.

Click INVENTORY in Menu bar and select -> FLYING CLOTHING: F{Q} 443B the
following figure will appear.

Fig 51

You will have the following options: -

Main, Inventory Holder Details; Other Details

8.1 : You may select desired section, document status (whether approved/not approved, registered
etc.) if known or leave the boxes blank; select the period desired and disable the date.

409
8.1.1 Click on show. The following figure will appear: -

Fig 52

8.1.2 All the details showing inventory type document No. Document Status, Registration date,
Section, Service No., Rank, Name, AC /Spl, Transfer from, Transfer to, Parent Sql /Inventory
No. Parent inventory No. etc. will appear.

NOTE:-If no date is required then 'disable' the date by clicking on small box which indicates
'tick mark' on the right hand side of 'To date' column.

Select the required row by clicking left key of the mouse, then click right key of the mouse
you will have the option: - AUDIT INVENTORY

410
The following screen will appear: -

Fig 53

411
8.1.3 Click on AUDIT INVENTORY.

The following screen will appear: -

Fig 54

You will have options: -Main, Holdings, Transactions, Audit /Transfer.

412
8.1.3(a)To view the transaction details i.e. vouchers No. Under which clothing items have been
received by the inventory holder or return by him, following stepts to be followed.

Click on transactions.

The following figure will appear on the screen with the records satisfying the query parameters.

Fig 55

The transactions of issue and receipt of clothing items are automatically being transferred from
IMMOLS to EQUOLS. However, you can verify the issue and receipt transactions through vouchers
from issue & receipt option by availing the facility of multi screening as available in AUDOLS or
by taking the print out of the vouchers.

8.1.3(b) HOLDINGS

To verify the holdings whether flying clothing items are held within scale,

(i) Click on Holdings: -

413
The following Figure will appear on the screen with the records satisfying the query
parameters.

Fig 56

414
(ii) To calculate Holdings, click on 'Calculate Holdings" at the bottom right of the screen. The
screen takes changes as under: -

Fig 57

All reds shows excess holding and yellows denotes less than authorization/scale. The excess holding
is to be placed under objection.

415
8.2 Inventory holder details

You can only select the inventory holder details if service No., Rank & Name is known. Fill
in the blank boxes with the requisite information.

(i) Click on show.

Fig 58

ii) Then click right mouse, the option AUDIT INVENTORY will appear.

(iii) Click on AUDIT INVENTORY

416
The figure will change as under: -

Fig 59

(iv) To verify the further details action as mentioned in Para would suo-moto be taken.

8.3 After completion of Audit of particular inventory,

CLICK ON AUDIT TRANSFER for audit remarks.

417
 The following screen will appear: -

Fig 60

i) Click to see previous Auditor's remarks

ii) Select the Audit Type

iii) Enter Audit Remarks

iv) Click on Save Remarks. On successful Audit a message " RECORDS HAVE BEEN
SUCCESSFULLY SAVED ' will appear.

*****

418
 Cha pter - 8
Chapter

9. LOAN ACCOUNTING: - Click on Loan Accounting, the following two options will appear
i.e. LOAN IN & LOAN out

LOAN INT stands for loans within AIR FORCE & LOAN EXT stands for loans outside Air
Force.

9.1 LOAN IN

CLICK INVENTORIES> SELECT LOANS -> LOAN IN

The following figure will appear:

Fig 61

419
Select the criteria i.e. loan type whether external or internal, loan from, to & date from 'date pick
up box'. Since Audit is concerned with Outstanding Loans hence click on outstanding; the figure
showing all outstanding loan-in in the unit will appear; which are to be placed under objection.

Fig 62

420
9.2 LOAN OUT: -

Click INVENTORIES > SELECT LOANS ->. LOAN OUT

The following figure will appear:

Fig 63

Select the criteria i.e. loan type whether external or internal, loan from, to & date from 'date pick
up box'. Since Audit is concerned with Outstanding Loans hence click on outstanding; the figure
showing all outstanding loan-out will appear; which are to be placed under objection: -

421
Fig 64

422
 Cha pter
pter-- 9
Chapter

REPOR TS
REPORTS

10. MIS REPOR TS :-

REPORTS

This section covers the process of generating various MIS reports provided in the EQUOLS
application.

As no provision for generating the reports have been provided in AUDOLS, you require the
permission of system administrator to generate the reports through EQUOLS.

10.1 LIST OF INVENTORIES: - This is an MIS report, which will generate a list of inventories
for a given period.

To view the report, you must access the list of inventories screen through the following menu
options: -

Equipment accounting -> Reports ->List of inventories

The list of inventories screen will open as per figure below:

Fig 65

423
Perform the following steps to view the report.

a. Select 'inventory type' from the combo box, if required .If inventory type not selected, the
report will be printed for all inventory types.

b. Select 'Status' from the combo box, if status is not selected the report will be for all status.

c. Select 'Section' from the combo box, if required. If section is not selected the report will be
for all sections. When 'section' is selected, list of inventories pertaining to selected section
will only appear on screen.

d. Select period from 'date pick-up Box'. (By default the date indicates 90 days behind the
current date).

e. Click OK. The report will open.

Click on print Symbol on the toolbar to get printout

10.2 IST OF INSPECTION SCHEDULE : To view the list of Inspection Schedule , you must
access the list of Inspection Schedule Screen through the following menu options :-

Equipment Accounting ->Reports ->List of Inspection Schedule

The list of Inspection Schedule Screen will open.

Fig 66

424
Perform the Following Steps to view the report:

b) Select Schedule type from the combo box, if nothing selected, report will be considered for
all types.

c) Enter inventory number in the Edit Box .If inventory number is blank; Report will be for all
inventories.

d) Select Schedule period from (Month) from combo Box.

e) Enter the period from (Year)

f) Select Schedule period to (Month) from combo Box.

g) Enter the period to (Year)

h) Click OK. The report will open.

Fig 67

i) Click Print Symbol on the toolbar. Report will be printed.

425
10.3 INVENTORY INSPECTION LIST :

To view the list of List of Inventory Inspection, you must access the list of Inspection Schedule
Screen through the following menu options;

Equipment Accounting ->Reports ->List of Inspection List

The list of Inventory Inspection List Screen will open (Refer figure).

Fig 68

Perform the following steps to view the report:

(a) Select Inspection Type from the combo box .If type is not selected report will be for all types.

(b) Select Section from the Combo box. If Section is not selected report will be for all sections.

(c) Select Inspection Date from & to from date picker box .

(d) Click OK. The report will open.

426
 Fig 69

(e) Click Print Symbol on the toolbar. Report will be printed.

10.4 INVENTORY ITEM TRANSACTION: To view this report , you must access the inventory
item transaction screen through the following menu options .

Equipment accounting ->Reports ->Inventory item transaction

The Inventory Item Transactions Screen will open (Refer Figure)

427
 Fig 70

Perform the Following steps to view Report:

a) Select Inventory Type from the combo box
b) Select inventory No. from the combo box
c) Select the period i.e From Date and To Date
d) Click any of the following options:(Indicated against radio button)
*Holding
*Transaction
e) Click First on radio button shown against 'TRANSACTION' and then
Click OK to get details of Transactions during the selected period.
f) Click first on radio button shown against 'HOLDINGS' and then Click OK to get details of
items held in that inventory.
NOTE: -When Clicks on radio button shown against 'HOLDINGS' the date and details
automatically 'disable'.

428
g) Report will open.

Fig 71

h) Click Symbol Print on the toolbar. Report will be printed.

To get Holding Report, the steps to be followed as for the transaction report.

10.5 NVENTORY OF KIT: -

To view this report, you must access the inventory of kit screen through the following menu
options: -

Equipment accounting ->Reports ->Inventory of kit

The inventory of kit screen will open (Refer figure)

429
 Fig 72

Perform the following steps to view the report.

a) Enter Service No.

b) Select Inventory No. From the combo box. (By default only one inventory number applicable
to the service number entered will be displayed)

c) Select any of the following options with the radio button in the screen.

*With transaction.

*Only Holdings.

*All.

*Below entitlement

*Above entitlement

By default, it shows 'With transaction' and 'ALL'.

430
d) If Click on OK the items held in the Kit Inventory of the individual will appear with transaction.

Fig 73

e) Click first on radio button shown against "Below entitlement" and then click on OK. List of
items below will appear.

431
Same procedure can be adopted for other option "Above entitlement"

f) Click on radio button shown against "Only Holding" and then click on OK Holding of kit
inventory with balance will appear on the screen. When click on radio button shown against
'Only Holdings" the option "Transactions" will remain on the screen and other options will
disappear.

Fig 74

g) Click Symbol Print on the toolbar. Report will be printed.

10.6 FLYING CLOTHING CARD

To view this report, you must access the Flying Clothing Card screen through the following
menu options: -

Equipment Accounting ->Reports ->Flying Clothing Card

The Flying Clothing Card screen will open {Refer figure}

432
Fig 75

433
 Fig 76

e) Click Symbol Print on the toolbar. Report will be printed.

For other items same steps are to be followed with requisite option.

10.7 LIST OF INVENTORY NOT CHECKED:

To view this report, you must access the List of inventories not checked screen through the
following menu options: -

Equipment accounting ->Reports ->List of inventories not checked

The List of inventories not checkedscreen will open (Refer figure)

434
 Fig 77

Perform the following steps to view the report.

a) Select From Date

b) Select To Date

c) Select Inventory Type .If inventory Type is not selected then report will be for all type of
inventories.

d) Click OK. The report will open.

435
 Fig 78

e) Click Symbol Print on the toolbar. Report will be printed.

10.8 INVENTORY ITEM HOLDING:

This MIS report will print details of item holdings held by an inventory holder for inventory
types F {F} 1515, F {Q} 420 & F {Q} 443{B}.

To view this report, you must access the Inventory Item Holding screen through the following
menu options: -

Equipment Accounting ->Reports -> Inventory Item Holding

The Inventory Item Holding screen will open {Refer figure}

436
 Fig 79

Perform the following steps to view the report:

a) Select Document Type from the combo box. If type is not selected the report will be for all
types of inventory.

b) Enter Item Code

437
c) Click OK. The report will open.

Fig 80

d) Click Symbol Print on the toolbar. Report will be printed.

10.9 LOAN REPORTS

10.9 (a) LOAN IN REPORT: -

This report will print the details of the items for Loan in - both External & Internal. External
corresponds to outside Air Force & Internal refers to Loan within the Air Force

To view this report, you must access the LOAN IN screen through the following menu
options: -

Equipment Accounting ->Loan Accounting ->Loan In

The Loan In screen will open (Refer figure).

438
 Fig 81

Perform the following steps to view the report.

a} Select Loan Type from the combo box

b} Select Loan From

c} Select Loan To

d} Select the Date From the date pickup box

e} Select Outstanding or All

f} Click OK. The report will open.

g} Click Symbol Print on the toolbar. Report will be printed.

10.9 (b) LOAN OUT REPORT

This report will print the details of the items for Loan out - both External & Internal.

439
External Loans corresponds to outside Air Force & Internal refers to Loan within the Air Force

To view this report, you must access the Loan out screen through the following menu options: -

Equipment Accounting ->Loan Accounting ->Loan Out

The Loan out screen will open {Refer figure}

Fig 82

Perform the following steps to view the report.

a) Select Loan Type from the combo box.
b) Select Loan From
c) Select Loan To
d) Select the Date from the date pickup box
e) Select Outstanding or All
f) Click OK. The report will open.
g) Click Symbol Print on the toolbar. Report will be printed.

440
10.10 ADVANCE TD ENTITLEMENT :

This report will print a list of items along with entitlement quantity which are due to a F {Q}
466 Inventory Holder before the TD period. Any item held in F {Q} 466 whose life expires
within the TD period can be issued in advance up to 15 days & will be shown as advance TD
entitlement.
In case; Airmen reporting after the TD period /long leave/Hospitalization are issued with
items for which entitlement dates were falling between the TD/Long leave/ Hospitalization
period, such issues,(if made within a period of 15 days after reporting back from TD/Leave/
Hospitalization) will be treated by the system as if the items were issued on the day when
they were supposed to be due and not on a later date when they were actually issued. The
next entitlement date will be calculated accordingly by the system.
NOTE: -When Airmen are in TD, Long Leave, Hospitalization, the details are to be fed by
Equipment Account section
To view this report, you must access the Advance TD Entitlement screen through the
following menu options: -
Equipment Accounting ->Report ->Advance TD Entitlement
The Advance TD Entitlement screen will open {Refer figure}

Fig 83

441
Perform the following steps to view the report.
a) Enter the Service No. Of the Inventory Holder
b) Select Inventory No. From the combo box (by default only one inventory number applicable
to the service number entered will be displayed)
c) Click OK. The report will open.
d) Click Symbol Print on the toolbar. Report will be printed.

*****

442