ACCOUNTS

Accounts
“Financial records of an organization that
register all financial transactions, and must be
kept at its principal office”
 RAILWAY ACCOUNTS
• The Accounts of a Railway have to facilitate a General review
of the finances of the Railway
1. as a Commercial Enterprise
2.as well as in accordance with the requirements of
Government Accounts.
• Therefore, the objectives of securing the essential
requirements of Commercial Accounting and practices of
Government Accounting is to maintain the link between the
two
• to show how much is coming into the government coffers
through the Railways and how much is going out as capital or
revenue expenditure out of government coffers as the money
being spent on the activities of the railways.
 RAILWAY ACCOUNTS AS A COMMERCIAL
ENTERPRISE
• Capital and revenue transactions
• Capital and revenue accounts
• Profit and loss account and balance sheet
prepared at close of financial year
 RAILWAYS ACCOUNTS AS A GOVT.
ENTERPRISE
Government accounts are maintained in 3 parts:
• I. Consolidated Fund of India(Part I)Article 266
• II. Contingency Fund of India(Part II)Article 267
• III. Public Accounts of India(Part III)Article 268
Organization Structure at Railway Board
 Organization Structure at Railway Board

• Member Electrical designation had been

changed to Member (traction)
• Member Engineering designation had been
changed to Member Infrastructure
• Member Mechanical designation had been
changed to Member Rolling Stock
• New Member S&T
• NEW Member R&S
Organization Structure at Zonal Level
Organization Structure at Division
STRUCTURE of Accounts Non Gazetted

Consists of two parts

– Indoor
• Section Officers Sr. SO (A/Cs) ,SO (A/Cs),
• Accounts Assistant Sr.AA ,AA ,Jr.AA ,Accounts Clerk

– Outdoor
• Sr. ISA, ISA
• Sr.ASV, ASV
• Sr.TIA ,TIA
 FINANCIAL COMMISSIONER
• The Financial Commissioner is professional head of the Railway
financial organisation and ex-officio secretary to Government of
india.
• He is vested full powers of the government of india to sanction
railway expenditure subject to the general control of the Finance
Minister.
• In the event of difference of opinion between FC and other
Members of the board, the former has the right to refer the
matter to the Finance Minister.
• The FC is assisted by Addl. Member finance and Addl.Member
Budget and advisor Accounting reforms and Advisor Finance
(Commercial establishment) etc,.
 Role of Accounts Department
Accounts Department is called up on to work as watch
dog of finances of Indian Railways
 Firstly, It represents the Ministry of finance in
evolution of proposals
 Secondly, It represents the Comptroller and auditor
general of India in maintenance of efficient
accounting through Railway Audit Department.
 Thirdly, It disbursing department of Indian Railways
and to arrange prompt payment to staff and
contactors etc,.
FUNCTIONS OF ACCOUNTS DEPARTMENT
The head of the accounts department at zonal is FA&CAO. And as his name
denoted, his functions are in two units.
As a FA ( Financial adviser): Looks after financial functions like,
• There are no financial irregularities in the transaction of the railways
• Helping the administration and executive officials of the railway with
financial advice whenever asked or found necessary.
As CAO(Chief Accounts Officer): Looks after Accounts functions like,
• Internal check of transactions affecting the receipts of expenditure.
• Keeping the accounts of the Railways in accordance with rules
• The prompt settlement of proper claims against the Railways
• Tendering financial advice
• Compilation of budget
• Other management accounting functions
• Ensuring Financial Propriety
• Inspection of Essential offices
 CANONS OF FINANCIAL PROPRIETY
• Every Government Servant 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.
• The expenditure should not be prima facie more than the occasion
demands.
• No authority should exercise its powers of sanctioning expenditure to pass
an order which will be directly or indirectly to its own advantage.
• Expenditure from public moneys should not be incurred for the benefit of a
particular person or a section of the people, unless -
• (a) A claim for the amount could be enforced in a Court of Law, or
• (b) 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
 Main Division Of Account Works
• Administration
• Booking and Compilation
• Budget
• Cash and Pay
• Compensation Claims
• Engineering Accounts
• Establishment accounts
• Finance and planning
 Main Division Of Account Works
(contd)
• Fuel Accounts
• Inspection (Executive and Accounts Officers)
• Expenditure accounts -imprest
• PF and Pension
• Traffic Accounts
• Stores Accounts
• Traffic costing
• Workshop accounts
Comptroller and Auditor General (CAG)
Control of expenditure is excised not only by Accounts dept but also by some other organizations
like CAG and parliament committees:

CAG is the authority for conducting audit of the accounts of the union, states
and union territories.
CAG’s functions are as follows:
• To audit all expenditure from the consolidated fund of India.
• To audit all transactions of the union and states relating to contingency
fund.
• To audit all trading, manufacturing, profit and loss accounts and balance
sheet kept in any department of the Union or State.
• To inspect any office of account under the control of Union or State.
• To require that any accounts which deal with or form the basis of
transaction shall be placed before him.
• To put such questions or make observations as considered necessary
 PARLIAMENT COMMITTEES
The control over expenditure is also exercised by
the Parliament through –
• Railway convention committee.
• Estimates committee.
• National Railway user’s consultative committee.
• Committee on subordinate Legislation.
• Committee on Government assurances.
• Public Accounts Committee
 Accounts inspection on Section Offices by
Accounts Dept
Accounts inspection of Section was done as a part of
internal check mechanism which ensures the following:-
• To verify the records kept with Section-in-charge.
• To ensure that all returns sent to accounts are based on
correct basic records.
• Scheduled in accordance with an inspection programme.
• The Inspectorial staff Associated with the Accounts
Inspection are ISAs and SVs for inspection of stores, TIAs
for inspection of Stations, and the Section Officers for
the inspection of Executive Offices.
 Inspection Reports
As soon as Accounts inspection is over it includes all items
which have not been satisfactorily been explained during
inspection and the reports generated are of two kinds:-
• PART I Accounts inspection report - items of major
objections.
• PART II Accounts Inspection report -items of minor
objections
• The Section-in-charge must give a convincing reply to the
accounts Inspection Report to have them close by the
Accounts Office.
 NEGATIVE POWERS of GM
• For efficient functioning of Zonal railways,
powers have been delegated by Railway Board
to General Managers of Indian Railways.
• powers delegated to General Managers’ are
negative in nature, i.e. for a limited no. of
specified items in the GMs’ –ve powers.
• General Managers are required to obtain prior
sanction of Railway Board. For case any item is
NOT LISTED in the GMs’ –ve powers.
 Schedule of Powers(SOP)
• The Schedule of Powers represents inter-alia delegation of powers
to Officers by the General Managers as received from Railway
Board.
• The objectives of the Schedule of Powers is to detail the powers
delegated to the Officers by the General Manager for quick
decision making and decentralization.
• These powers are delegated by the General Manager in
consultation with the Financial Adviser & Chief Accounts Officer
(FA&CAO).
• The powers delegated are to be exercised only by the authority
indicated and to the extent specified.
• The powers are subject to existing codal procedures, rules and
other extant orders issued by Railway Board from time to time.
• The powers are also subject to availability of funds.
• No re-delegation is permissible unless specifically authorized by
the General Managers.
 Schedule of Powers(SOP) contd
The delegation is grouped mainly under 3 headings
• A. PHODs / HODs
• B. DRM/ ADRM/ SAG Officers in field units.
• C. Divisional / Extra Divisional Officers and Officers in
H.Qrs.
The schedule of power is divided into 7 parts:
1. works matters,2. miscellaneous matters,
3.Establishment matters,4. Commercial matters, 5.Stores
matters, 6. Medical matters and 7.Disaster
Management.