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Accounts Department An Overview
Parimal Kasliwal Professor Accounts Management
No Taxation without Representation .
. No tax shall be levied or collected except by authority of law.265.
. and (b) the sums required to meet other expenditure proposed to be made from the Consolidated Fund of India. and shall distinguish expenditure on revenue account from other expenditure. (2) The estimates of expenditure embodied in the annual financial statement shall show separately² (a) the sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of India.112. in this Part referred to as the ³annual financial statement´. (1) The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year.
shall be regulated by the rules made by the President . the custody of public moneys other than those credited to such Funds received by or on behalf of the Government of India. and. the payment of moneys into such Funds. untill provision on that behalf is so made.283. (1) The custody of the Consolidated Fund of India and the Contingency Fund of India. the withdrawal of moneys therefrom. their payment into the public account of India and the withdrawal of moneys from such account and all other matters connected with or ancillary to matters aforesaid shall be regulated by law made by Parliament.
Indian Railways and the Constitution of India .
Constitutional Provisions Seventh Schedule Rules of Allocation of Business Railways & MoF .
. Carriage of passengers and goods by railway. sea or air.Seventh Schedule (Article 246) (List I. Railways 30. or by national waterways in mechanically propelled vessels.Union List) 22.
4. 3. regulations in respect of safety. . etc. Government Railways. 2. excluding the item of work allocated to the Department of Urban Development. but excluding Railway Inspectorate and Railway Audit. maximum and minimum rates and fares. namely. 1989 (24 of 1989) or in the contracts between the Government and Railways. Administration of pension rules applicable to Railway employees. Railway Board as provided in the Railways Act. or in any other statutory enactments. including those relating to Railway revenues and expenditure.Allocation of Business Rules RAILWAY BOARD (RAIL BOARD) 1. Parliament Questions regarding offences relating to pilferage of railway property other than offences relating to crime on Government Railways and Non-Government Railways. Non-Government Railways ± Matters in so far as provision for control by the Ministry of Railways.All matters.
Govt.Consulting Engineer. 5 by Indian Princely states & 24 by pvt. Companies) Headed by an officer of the ICS Assisted by 1 Secretary.HISTORICAL BACKGROUND 33 separate Railway administrations (4 by Govt.. 4 Assistant Secretaries 7 circles. 4 Under Secretaries. Examiner of Accounts Accounting and auditing by Accuontant General (Public Works Department) . 3 Deputy Secretaries.
HISTORICAL BACKGROUND Oct 1901 Sir Thomas Robertson appointed as Special Commissioner of IR Report in 1903 Setting up of Railway Board Chairman & 2 Members March 1905-Control given to Railway Board Examiner of Accounts .
appointment of Financial Commissioner (Railways) in April 1923 . Railway Finance Committee Independent of Department of Commerce and industry: Post of Accountant General Railways created Based on recommendations of Acworth Committee (1921).HISTORICAL BACKGROUND 1908.
Separation convention of 1924 Evolution in five stages . coordination of Railway policy with general financial policy.HISTORICAL BACKGROUND Objective-Economy in expenditure of public money.
)) and Director of Railway Audit under Auditor General ± Beginning of IRAS . AG replaced by Controller of Railway Accounts (under FC(Rlys. accounting by AG Stage II: Appointment of Financial Commissioner (Railways) in 1923 Stage III: Separation process complete in 1929.HISTORICAL BACKGROUND Stage I: Railway finance part of Finance Department.
HISTORICAL BACKGROUND Stage IV: Railway Accounts Department placed under General Manager (Wedgewood Committee (1937)) ± Change of designation to FA&CAO Stage V: distinct Finance Branch under Financial Adviser & Chief Accounts Officer (FA&CAO) .
Railway Board Financial Commissioner (Railways) Members of the Railway Board ± Member Engineering (ME) ± Member Electrical (ML) ± Member Mechanical (MM) ± Member Staff (MS) ± Member Traffic (MT) .Railway Board Chairman.
Financial Commissioner (Railways) Separation Convention ± Railway Budget separate from General Budget ± Railway to manage its own finances ± Sanctioning of Expenditure for Railways .
can directly refer to Finance Minister Can issue instructions to all FA&CAOs on accounting and financial matters.FINANCIAL COMMISSIONER (Railways) Professional head. of India In event of disagreement with Chairman. . Railway Board (and the Minister of Railways) in matters concerning Railway Finance. ex-officio Secretary to Govt.
Dy. CAG (Railways) at Railway Board PDA at Zonal Railways Senior Divisional Audit Officer at field level .Accounts Department of IR 3 Levels ±Apex Railway Board ±Zonal Railway ±Field Units Audit Offices are attached at all 3 levels. viz.
Financial Commissioner Accounts Accounting Reforms Finance Finance Budget Finance Commercial Establishment Pay Commission Statistics & Economics .
FA&CAO/G FA&CAO/WST FA&CAO/CONSTN DY.FA&CAO/Stores Chief Cashier Dy FA&CAO/Const SAO SAO SAO SAO SAO SAO JAO JAO JAO JAO JAO JAO .FA&CAO DY.FA&CAO/TFC DY.FINANCIAL ADVISER &CHIEF ACCOUNTS OFFICER FA&CAO/G DY.
DIVISIONAL ACCOUNTS ORGANISATION Sr DFM ADFM DFM ADFM .
FUNCTIONS OF ACCOUNTS DEPARTMENT Keeping the accounts of the Railways in accordance with prescribed rules Internal check of transactions affecting the receipts of expenditure of the railways. Tendering financial advice Compilation of budget Other management accounting functions Ensuring financial propriety .
MAIN DIVISIONS OF WORK Administration Booking and Compilation Budget Cash and Pay Compensation Claims Engineering Accounts Establishment accounts .
MAIN DIVISIONS OF WORK Finance and planning Fuel Accounts Inspection(Executive and Accounts Officers) Expenditure accounts PF and Pension Traffic Accounts Stores Accounts Traffic costing Workshop accounts .
Payments from imprest.master sheets. station earning. payments made in advance for purchase of stores may be postchecked. . payments of certain classes of pay bills.INTERNAL CHECK OF EXPENDITURE Precheck and postcheck All claims against the Railways should be prechecked.
INTERNAL CHECK Check of sanctions and orders Check of delegation of financial authority Check of all establishment bills Pre check and post check of expenditure Maintenance of PF accounts Check of pension payments Prior check of all contractor¶s bills. stores bills before passing the same for payment .
INTERNAL CHECK Conducted with reference to rules and orders issued Codal provisions Cannons of financial propriety For example while scrutinizing receipts Amount due to railways are correctly and promptly assessed and recovered All receipts are properly brought into account Correctly clarified/correctly apportioned Sanctioned by competent authority. .
RAILWAY ACCOUNTS AS A COMMERCIAL ENTERPRISE Capital and revenue transactions Capital and revenue accounts Profit and loss accounts. balance sheet Prepared at close of financial year .
ENTERPRISE Govt accounts are maintained in 3 parts Consolidated Fund of India(Part I)Article 266 Contingency Fund of India(Part II)Article 267 Public Accounts of India(Part III)Article 268 .RAILWAYS ACCOUNTS AS A GOVT.
register of serious irregularity Classification of objects ± Want of sanctioned estimate. excess over estimate. action taken by the Accounts Officer .RESULTS OF INTERNAL CHECK Irregular payments and objections ± Disallowance list. irregular personal claims. objections book. absence of vouchers Regularisation of objections ± Requiring GM¶s sanction.objections statement. Railway Board¶s sanction.
line capacity works. yard remodelling.FINANCIAL APPRAISAL OF RAILWAY PROJECTS General principles of investment decisions Scrutiny by Accounts Officer Test of remunerativeness-14% New lines. change of traction.introduction of new services 50 lakhs and above-detailed traffic survey .
. Debt. transfer between different accounting circles.Adjusting heads.Expenditure to increase concrete assets.Loan and advances. Capital.Traffic earning main source.Structure of Railway Accounts Revenue. block account. Remittances. working expenses main revenue expenditure.
which answers what. activities and objects. . Each demand has three subdivisions. detailed head which answers why. primary unit. This classification provides direct integration.Performance Budgeting Demands for grants. 13 demands for grants.Subhead.Spell out the function. management information. flexibility.