Audit Manual

Ch.
IV - Page 1 of 46
78
C O N T E N T S
UPDATED MANUAL
Paragraph
Chapter I Organisation

Organisation 101 to 105
Chapter II Departmental Regulations

Powers and responsibilities of Principal Director of Audit 201 & 202
Transfer of Charge 203
Powers of Director / Deputy Director 204
Fixing Headquarters and posting of IA & AS Officers 205
Operation of posts of Audit Officer in lieu of IA&AS posts 206
Entrusting the charge of Deputy Director to Audit Officer 207
Appointment of Group B Officers 208
Distribution of work 209
Handing over notes of officers and staff 210
Tour Programme 211
Returns and sanctions regarding transactions relating to property 212
System of Payments to Group A Officers 213
Appointment of Non-gazetted staff 214
Oath of Allegiance 215
Conditions of service 216
Award Scheme 217
Promotion of an Asstt. Audit Officer as Audit Officer 218
Transfers from one office to another 219
Deputation 220
Permission to join officially sponsored Organisations 221
Permission to join Educational Institutions 222
Representations 223
Maintenance of Secrecy in official matters 224
Conviction of Government Servants in a Court of Law 225
Government Servants arrested on criminal charge 226
Confidential Reports 227
Gradation List 228
Casual Leave 229
Authority to sanction Casual Leave 230
Station Leave 231
Ch.IV - Page 2 of 46
79
Compensatory Leave 232
Special Casual Leave 233
Restricted Holidays 234
Passes / PTOs 235
Custody of Passes and PTOs 236
Verification of Passes and PTOs 237
Passes and PTOs to IA&AS Officers 238
Non-Railway Deputationists 239
Passes on Sports Account 240
Non-entitlement of concessions to Railway Audit Staff 241
Availing of Passes / PTOs from outside Officers / Railways 242
Declaration of family members / dependent relatives 243
Counting of past service rendered in the civil offices for determining the
class of accommodation
244
Period of availability of Pass/PTO to those who are about to retire 245
Medical attendance 246
Residential Accommodation 247
Travelling Allowance 248
Childrens Educational Allowance, Reimbursement of Tuition Fee and
payment of Hostel subsidy
249
Advances 250
Staff Associations 251
Inspection of Principal Director of Audits office by the Principal Director
of Inspection
252
Annexure I (Para 204) Powers of Director / Deputy Director incharge of
Administration

Annexure II (Para 209(b)) Duties of Secretary to Principal Director of
Audit

Annexure III (Para 210)
(i) Format I Handing over report of Branch Officer
(ii) Format II Handing over report of SO / AAuO.

Chapter III General Office Procedure

Hours of work and holidays 301 (a)
Closure of Government Offices in the event of death of high dignitaries 301 (b)
Attendance 302
Late Attendance 303
Absence from Office 304
Inward Dak 305
Registration of Inward letters 306
80
Disposal of letters 307
Typing Work 308
Stenographers 309
Submission of files to Pr.D.A. / Directors / Dy. Directors 310
Signing of letters 311
Despatch of letters 312
Stamp account 313
Weekly Arrear Report of Letters 314
Supply of copies of orders and circulars to various sections 315
Maintenance of files 316
Custody of confidential and secret files 317
Maintenance of records 318
Weeding and destruction of records 319
Maintenance of registers general instructions applicable to all registers 320
Sectional register 321
Calendar of returns 322
Pending cases register 323
Register of outward correspondence 324
Register of reminders 325
Register of Audit Notes and Special Letters 326
Codes, Manuals and other publications 327 (a)
Supply of Codes / Manuals at concessional rates to examination candidates 327 (b)
Correction slips 328
Office library 329
Gazettes 330
Furniture 331
Dead stock register 332
Telephones 333
Newspapers and Periodicals 334
Upkeep of Typewriters 335
Office Orders and Office Order Registers 336
Departmental Security Instructions 337
Security arrangements of the office 338
Closing of the Audit Recreation Club 339
Issue of keys of tables, cupboards etc. and custody of duplicate keys 340
Annexure IV (Para 306) Central A Dak Register, B Dak Register of
routine section & A / B Dak

Annexure V (Para 314) A / B Dak Arrear List
Annexure VI (Para 316) Model List of Major and Minor Heads by which
81
files should be classified
Annexure VII (Para 319) Statement showing the period of preservation of
the various kinds of records maintained in this office which do not
appear in Appendix II o the Railway Audit Manual

Annexure VIII (Para 323) Register of Pending Cases
Annexure IX (Para 326) Register of Special Letters / Part. I Audit Notes
Annexure X (Para 328) List of Code Books / Manuals etc. assigned to
various headquarters sections for upkeep

Annexure XI (Para 328) - Scrutiny and distribution of P.O.O.s by
Headquarters sections

Annexure XII (Para 331) Scale of Furniture
Chapter IV Administration

Administration 401
Staff Proposals 402
Creation of Posts 403
Sanctions 404
Register of Sanctions 405
Sanctioned Strength 406
Recruitment of Auditors, Clerk/Typists and Stenographers 407
Recruitment of Group D 408
Relaxation of Age Limit 409
Extension of time limit for joining duty for new recruits 410
Appointments on Compassionate Grounds 411
Recruitment against Sports Quota 412
Offer of appointment and appointment orders 413
Verification of Identity 414
Communal Roster 415
Training of Auditors 416
Departmental Examination for Auditors 417
Section Officers Service 418
Section Officers Grade Examination (SOGE) 419
Selection and training of candidates for SOGE 420
Statement of Candidates for SOGE 421
Withdrawal from the examination 422
Conduct of the examination 423
Grant of Leave to SOGE Candidates for preparation 424
Pass and Travelling Allowance to SOGE Candidates 425
Seniority in Section Officers cadre 426
Revenue Audit Examination for SOs / AAuOs 427
82
Conditions of eligibility to sit for the examination 428
Maximum number of chances 429
Incentive to Candidates passing the examination 430
Travelling allowance to the candidates for training 431
Training of candidates 432
Syllabus for examination 433
Statement of candidates permitted to appear in the examination 434
Departmental examination for promotion as Stenographer 435
Limited departmental competitive examination for matriculate Group D
staff for promotion as Clerk/Typists
436
Promotion of Auditors as Senior Auditors 437
Promotion of Clerk/Typists as Auditors 438
Promotion of Group D employees 439
Officiating promotions in short term vacancies 440
Seniority 441
Confirmation 442
Transfers 443
Applications for employment elsewhere 444
Compulsory retirement 445
Pension 446
Family pension 447
Nomination 448
Settlement bills 449
Budget and Revised Estimates 450
Estimates for Deposits and Loans, Pensionary charges 451
Register of Expenditure 452
Register of contingent expenditure 453
Control statements 454
Register of liabilities 455
Appropriation Accounts 456
Appropriation Accounts of Pensionary Charges 457
Preparation and registration of bills 458
Abstract of attendance 459
Salary bills of Gazetted and Non-gazetted Officers 460
Signing of Pay Bills 461
Increment Register 462
Drawal of HRA & CCA 463
Income Tax 464
Recovery of rent for Railway Quarters 465
83
Recovery Register 466
Supplementary Bills 467
Arrear Bill 468
Last Pay Certificate 469
Disbursement of Pay and Allowances 470
Leave 471
Maintenance and verification of Service Registers and Leave Accounts 472
Office Order Books 473
Travelling Allowance 474
Advance of Travelling Allowance on Tour / Transfer 475
Medical Attendance Rules 476
Educational Assistance 477
Reimbursement of Tuition Fees 478
Hostel Subsidy 479
Festival Advance 480
Cycle Advance 481
Table Fan Advance 482
Passes/PTOs 483
Grant-in-aid to Recreation Club 484
Audit Bulletin 485
Monthly Review Report on the activities of Administration Section 486
Annexure XIII (Para 486) Monthly Review of Activities of
Administration Section

Chapter V General Audit Procedure

General 501
Programme of Audit 502
Periodicity of Audit 503
Selection of Documents for Audit 504
Procedure for Selection of Vouchers, Pay Bills etc. 505
Requisition for vouchers 506
Collection of documents 507
Completion of Audit 508
Audit enfacement 509
Selection-cum-Audit Completion Register 510
Progress Report 511
Combined Monthly Arrear Report 512
Quarterly Arrear Report 513
Original Audit 514
84
Current Review 515
Post Review 516
Raising and pursuance of objections 517
Recovery register 518
Review of working of Accounts Department 519
Review of Register of Losses 520
Office Manuals and Procedure Office Orders and corrections thereto 521
Annexure I (Para 510) Selection-cum-Audit Completion Register
Annexure II (Para 511) Progress Report Register
Annexure III (Para 512) Monthly Report on the state of work
Annexure IV (Para 517) Format for issue of Special Letter Category
A

Annexure V (Para 519) Register of Review of Accounts Office Work
Chapter VI Expenditure Audit

General 601
Audit of Sanctions 602
Review of Permanent Sanctions 603
Audit of Estimates 604
Audit of Completion Reports 605
Tenders and Contracts 606
Record of Tenders and Contracts reviewed 607
Review of Implementation of Contracts 608
Audit of Contractors Bills 609
Measurement Books 610
Contractors Ledgers 611
Works Registers and Revenue Allocation Registers 612
Scrutiny of Financial Reviews 613
Review of Productivity of out-lay 614
Review of Major Works 615
Accounts of Sidings 616
J oint Station Accounts 617
Review of Registers of items under objection 618
Law Charges and Arbitration Fees 619
Audit of J ournal Vouchers 620
Payment of Municipal Taxes 621
Recovery of water charges from Gazetted Officers occupying Railway
Quarters
622
Review of Court Cases and Arbitration Awards 623
Land Register 624
85
Rent on Railway Buildings 625
Register of Buildings 626
Annual Rent Return Account of the Residential Buildings 627
Audit of Property Accounts 628
Review of Suspense Registers 629
Financial Assistance to Railwaymens Consumer Cooperative Societies 630
Payment of subsidy to staff canteen 631
Grants-in-aid 632
Expenditure from Hospitality Fund 633
Pay Orders / other vouchers not falling under any other category 634
Bills Recoverable 635
Audit of Stores Bills for non-stock items 636
Audit Catering Accounts 637
Audit of Fuel Accounts 638
Audit of Coal Issue Notes 639
Audit of Priced Ledgers 640
Suppliers Bills 641
Coal Handling Contracts 642
Coal Handling Bills and Ash Pit Clearing Bills 643
Sale of Coal 64
Review of the Suspense Registers (Fuel) 645
Electricity used as Locomotive power 646
Annexure I (Para 607) Register of Review of Contracts relating to Works
and Purchase of Stores etc.

Annexure II (Para 614) Register of Productivity Test
Chapter VII Establishment and P.F. Audit

General 701
Audit of Pay Bills 703
Fixation of Pay on first appointment and re-fixation of Pay 704
Officiating appointment 705
Leave Salary 706
Subsistence Allowance 707
Dearness Allowance and other Allowances 708
Payment of out-turn allowance to Signallers / Teleprinter Operator 709
Provident Fund recoveries 710
House Rent, Water and Conservancy Charges 711
Electricity Charges 712
86
Diet Charges 713
Other Recoveries 714
Recovery of Advances 715
Scale Check 716
Allocation 717
Unpaid Wages 718
Labour Pay Sheets 719
Travelling Allowance Bills 720
Points to be seen during the audit of Travelling Allowance Bills 721
Pay Orders for Payment of unpaid wages 722
J ournal Vouchers 723
Payments under Workmens Compensation Act 724
Advance of Pay, Travelling Allowance, Leave Salary etc. 725
Festival Advance 726
Medical Attendance Bills of Gazetted Officers 727
School Fee Bills 728
Reimbursement of Tuition Fees 729
Staff Benefit Fund 730
Audit of Provident Fund Accounts 731
Temporary Withdrawals from Provident Fund 732
Final Withdrawals from Provident Fund 733
Reconciliation of Provident Fund Ledger Accounts with General Books 734
Interest Credits and Bonus Contributions 735
Verification of Pensionable Service 736
Audit of Pensions 737
Family Pension 738
Commutation of Pension 739
Ex-gratia Pension 740
Check of paid vouchers of pension 741
Check of paid vouchers / gratuity 742
Audit of vouchers relating to Family Planning 743
Audit of Contingent Expenditure 744
Fees and Honoraria 745
Review of Scale Check Register / Cadre Register 746
Leave Account 747
Register of Irregularities, Losses and Overpayments waived maintained
in the Accounts Office
748
Disallowance Lists 749
Miscellaneous Advances including House Building and Motor Car 750
87
Advances and Deposits Miscellaneous
Cost of Order Police 751
Register of Foreign Service Contributions 752
History of Services of Officers of the Railway Department 753
Audit of transactions relating to Deposit Linked Insurance Scheme 754
Audit of Railway Employees Group Insurance Scheme 755
Audit of Productivity Linked Bonus Bills 756
Audit of charges debitable to 345-A & 345-B Indian Railway
Miscellaneous Railway Expenditure
757
Chapter VIII Books and Budget Including Appropriation Audit

General 801
Computerised Accounting System 802
Sanctions 803
Check of J ournal Vouchers including scrutiny of Adjustment Memo 804
Tracing the postings from J ournal Vouchers into J ournals 805
Check of monthly accounts with schedules and J ournals (Capital and
Revenue)
806
Pay Orders for payment of unpaid wages 807
Budget Registers and Reappropriation Statements 808
Check of vouchers in connection with inter-dominion transactions with
Pakistan Government
809
Review of Suspense Register 810
Inter-dominion agreements, contracts having financial implications 811
Register of (i) Irregularities (ii) Serious Irregularities (iii) Losses and (iv)
Registers of overpayments foregone
812
Review of Register of Major and Minor Deviations 813
Reconciliation of unpaid wages with General Books 814
General Cash Book 815
Cashiers Cash Book 816
Divisional Cashiers (including cashiers) cash book 817
Review of Miscellaneous Advances and Deposit Miscellaneous Registers 818
Review of Demands Payable Register 819
Adjustment with other Government Departments 820
Transfers within the Railways and Transfers with other Railways 821
Branch Line Contracts 822
Debt Head Report 823
Capital and Revenue Accounts 824
Finance Accounts 825
Statement showing Transfers Without Financial Adjustments 826
88
Statement showing calculations of Dividend Payabale to General Revenues 827
Statement of Deferred Dividend 828
Contingency Fund Exhibition of transactions in the combined Finance
and Revenue Accounts
829
New Services not contemplated in the Budget 830
Appropriation Audit
Annual Budget Revised and Budget Estimates 831
Appropriation Accounts 832
Check of Appropriation Accounts 833
Check of Civil Grants: Loans and advances by Central Government 834
Explanations in the Accounts 835
Framing of Audit Comments on Individual Grants / Anneuxres etc. 836
Annexure A Statement of Unsanctioned Expenditure 837
Annexure B Statement of undercharges detected by Accounts and Audit
and recovered
838
Annexure C Statement showing remissions and abandonment of claims
to Revenue
839
Annexure D Review of Expenditure on Important Open Line Works
and New Constructions
840
Annexure G Block Account, Capital Statement (comprising loan
account) Balance Sheet and Profit and Loss Account
841
Annexure H Statement of Losses etc. 842
Annexure I Statement of Irregular Re-appropriation 843
Annexure J Statement of Misclassifications and other Mistakes 844
Annual Statement of Voted and Charged Expenditure 845
Statement Showing changes in Form and Classification of Accounts 846
Statement of Stores and Stock Adjustment Account 847
Statement Showing Percentage of working expenses to earnings 848
Statement of credits to capital for retired assets 849
(i) Profit and Loss Account of Catering Department; and (ii) Profit and
Loss Account of Grainshops
850
Statement of Suspense Balances 851
Statement of ex-gratia payments to be shown as foot-notes to the
Appropriation Accounts
852
Statement of Defects in Budgeting 853
Note on Control over Expenditure 854
Audit Certificate 855
Chapter IX Workshop Audit

General 901
89
Audit of Estimates 903
Audit of Completion Reports 904
Stores Bills and Contractors Bills 905
Audit of Incentive Bonus and Piece Work Bills 906
Essentially Indirect Workers 907
Bonus Bills for Maistries 908
Bonus Bills for Chargemen 909
Booking of overtime incentive and non-incentive sections of the workshop 910
Muster Rolls, Labour Pay Sheets and time sheets 911
Works Registers and Revenue Allocation Registers 912
Miscellaneous Advances and Deposit miscellaneous register 913
Workshop Manufacture Suspense Account 914
Labour Sub-Ledger 915
Stores Sub-Ledgers 916
Workshop General Register 917
On Cost 918
Calculation of On Cost 919
Proforma On Cost 920
Distribution of On Cost Charges 921
Out-turn Statements 922
Workshop Account Current 923
Reconciliation of Monthly Account of Stores with sub-ledgers 924
Transfer Statements or Memo 925
Advice Notes of Returned Stores 926
Accounts, Numericals or otherwise of Stores received into Workshop and
charged off to work orders but not actually used thereon
927
Accounts of Materials Spare from Work Orders 928
Accounts, Custody and Disposal of Scrap Material 929
Recovery of non-ferrous turnings / borings from shop floor 930
Records of Rolling Stock 931
Review of Major Works undertaken in Workshops 932
Record of Plant and Equipment 933
Work Orders 934
Proforma Capital and Revenue Accounts of Saloons reserved for the
exclusive use of other departments
935
Recover of Interest Charges on the capital cost of Postal Vans 936
Review of Statistics of Periodical Overhaul and Cost of Unit Repairs
Overhauling
937
Saw Mill Account 938
90
Foundry Account 939
J ob Costing 940
Cost Accounts and J ob Cost Sheets 941
Review of Contracts 942
Sales Abstract 944
Auction Sale Account 945
Sales of materials other than Auction Sales 946
Accounts, Custody and Disposal of Scrap 947
Annexure to Para 927 Tightening of Accountal procedure in Workshops
Chapter X Stores Audit

General 1001
Review of Contracts 1002
Purchase Orders 1003
Risk Purchases 1005
Audit of Stores Bills 1006
Port charges and Custom duties 1007
Receipt Returns, Delivery Notes and Priced Ledgers / Transaction
Registers
1008
Monthly Stores Account Current 1009
Price Lists 1010
Price List rates for new stores 1011
Price List for scrap 1012
Purchase Accounts Registers 1013
Miscellaneous Advances Capital and Revenue 1014
Security Deposit 1015
Stock Verification Reports 1016
Stores-in-Transit Register 1017
Stock Adjustment Account Register 1018
Stores Adjustment Sheet 1019
Yearly Statement of Stores Transactions 1020
Surplus Stores 1021
Scrutiny of sanctions to Quantity and Purchase through Programme
Indents placed on the D.G.S.&D.
1022
Audit of Accounts for Imprest Stores 1023
Imprest Accounts other than Engineering Stores 1024
Accounts, Custody and Disposal of Scrap 1025
Review of cases of losses, embezzlement etc. 1026
91
Survey Committee Reports 1027
Inspection of the work of receiving and dispatching sections of the Stores
Depots
1028
Revision of audit procedure consequent on computerization of stores 1029
Annexure I (Para 1003) - Register of Review of Purchase Orders
Annexure II (Para 1004 Sub-Para 5) Register of Review of
Implementation of Contracts

Chapter XI Traffic Audit

General 1101
Sanctions 1102
Station and Out-Agency accounts 1103
Coaching Accounts 1104
Concession Vouchers 1105
Tracing of errors noticed in the check of passenger classification in
incorrect statements and review of incorrect statements
1106
Audit of collected tickets and Ticket Collectors Reports 1107
Return of Tourist Agents 1108
Excess Fare Returns 1109
Luggage, Horse, Carriage and Dog Returns 1110
Demurrage and wharfage of parcels and left luggage 1111
Check of coaching traffic Non-Government Railways 1112
Special Trains, Tourist Cars, etc. 1113
Parcel Traffic (Paid) 1114
Audit of Parcel Way Bills 1115
Register of unaccounted for parcel way bills 1116
Audit of Parcel Way Bills Foreign Traffic (Government Railways) 1117
Comparison of forwarded abstracts received from foreign railways with the
received abstracts and preparation of lists of unaccounted for parcel
way bills
1118
Foreign Traffic (Non-Government Railways) 1119
Comparison of outward and inward traffic returns and review of lists of
unaccounted for parcel way bills (Non-Government Railways)
1120
Tracing of undercharges noticed on parcel way bills into Register of
Exempted Debits / Error Sheets
1121
Verification of parcel way bill books in use in stations 1122
Telegraph Traffic Receipts 1123
Concurrent check of Police Warrants and Credit Notes (Parcels and Goods) 1124
Review of Registers of Credit Notes kept pending 1125
Audit of Coaching Balance Sheets 1126
Goods of Accounts 1127
92
Audit of Invoices 1128
Check of Invoices marked for weighment enroute (Local Traffic) 1129
Audit of Invoices (Foreign Traffic) 1130
Check of Invoices marked for weighment enroute (Foreign Traffic) 1131
Tracing of undercharges noticed on invoices into incorrect statements and
review of incorrect statements
1132
Check of Invoices Non-Government Railways 1133
Comparison of outward and inward traffic returns and review of
unaccounted for invoices (Non-Government Railways)
1134
Railway Material Traffic 1135
Comparison of Outward and Inward Returns (RMC) 1136
Review of Registers pertaining to Railway Material Traffic maintained by
Accounts Office
1137
Check of Wagon Registration Fees 1138
Wharfage and Demurrage returns 1139
Review of Debits Withdrawn 1140
Review of exempted debits register 1141
Audit of Goods Balance Sheet 1142
Refund lists and Overcharge Sheets (Coaching and Goods) 1143
Miscellaneous 1144
Audit of cases relating to remission and refund of wharfage and demurrage
charges
1145
Compensation for goods lost, damaged etc. 1146
Rate circulars and Tariff charges 1147
Handling and transshipment bills 1148
Check of crane charges 1149
Review of Reports of Station Inspections by Travelling Inspectors of
Accounts and Accounts Officers
1150
J ournal Vouchers including adjustment memo 1151
Pay orders and other vouchers not falling under any other category 1152
Rebate of freight 1153
Review of Suspense Accounts 1154
Audit of Postal Bills 1155
Cashiers Station Cash Book 1156
Write off Registers 1157
Statement of siding charges 1158
Register of serious irregularities, losses and overpayments waived 1159
Register of Objectionable Items and Provisional Payments 1160
Review of tenders and contracts 1161
Traffic Book and Accounts Office Balance Sheet 1162
93
Terminal and other taxes 1163
Audit of Tolls 1164
Capital and Revenue Accounts 1165
Working of the Accounts Department 1166
Proforma Accounts of work done on behalf of other Government
Departments
1167
Apportionment of earnings between main and worked lines 1168
Pooling Traffic Arrangements 1169
Wagon Pool Accounts (i) Pakistan Railways (ii) Indian Railways 1170
Collection and delivery service-procedure for payment to contractors 1171
Audit of Cess on Coal 1172
Miscellaneous Statements (Goods and Coaching) 1173
Net Balance Statement Non-Government Railways 1174
Review of concession register maintained in the Accounts Office 1175
Check of Miscellaneous Cash Receipts 1176
Chapter XII Special Audit Group

Duties of the Section 1201
Special Audit Group 1202
Investigations based on published Railway Statistics 1203
The following reports are to be reviewed by the SAG Section as and when
received and the results bringing out important points, if any, put up
to Principal Director of Audit
1204
Review of Work Study Reports 1205
Railway Budget 1206
Scrutiny of important special adjustments initiated towards the close of the
financial year, which require special examination in SAG Section
1207
Review of Periodical Confidential DOs (PCDOs) 1208
Appendix to Para 1203 List of Statistical Subjects
Chapter XIII Co-ordination Section

Duties of the Section 1301
Efficiency of Internal Check 1302
Statistics of Volume of Work done in Audit Offices 1303
Procedure Office Order Register 1304
Programme of Audit 1305
Preparation of Charge Reports of Principal Director / Director / Deputy
Director
1306
Tour Notes of Principal Director of Audit / Director / Deputy Director 1307
Recoveries at the instance of Audit 1308
Comptroller and Auditor General of Indias References (CAG References) 1309
94
Custody, distribution and destruction of copies of Secret Memorandum of
Instructions regarding Extent of Audit
1310
Quarterly Progress Reports on losses sent by General Manager to Railway
Board
1311
Circulation of important results of audit and maintenance of Register of
Important Results of Audit
1312
Arrear Report 1313
Annexure I (Para 1302) Report on the Efficiency of Internal Check
Annexure II (Para 1303) Statistics of volume of work done in Railway
Audit Offices Divisions/Sections

Chapter XIV Internal Audit

General 1401 to 1405
Chapter XV Reports Section

General 1501
Draft Paras 1502
Corrections to Railway Audit Report 1503
Pursuance of Paras included in the Audit Report 1504
Circulation of Railway Audit Reports 1505
Memoranda for Public Accounts Committee (Action Taken Note) 1506
Chapter XVI Inspections

Objects of Inspection 1601
Distribution of Inspection work 1602
Frequency of Inspection 1603
Programme of Inspections 1604
Procedure for taking up Inspections 1605
Intensified Inspections 1606
Branch Officers supervision of inspections 1607
Inspection of Sub-Offices 1608
Points to be seen during inspections 1609
Maintenance of detailed records of documents audited during inspection 1610
Issue of Inspection Reports 1611
Register of Progress of Inspections 1612
Review of Major Works 1613
Check of royalty paid by Book Stall Contractors 1614
Verification of cash in hand with the Chief Cashier, Divisional Cashier and
Cashiers during surprise visits
1615
Traffic Audit Inspection 1616
Inspection by Accounts Office 1617
95
Annexure I (Para 1604) Statement showing the additions to/ deletions
from the list of main/sub-offices compared with the list of offices to
be inspected in the previous year

Annexure II (Para 1604) Revision of duration of standard time allowed
for various inspections and composition of the party

Annexure III (Para 1606) List of important offices for whose inspections
assistance is provided by intensified Inspection Cell

Annexure IV (Para 1609) Items common to all Heads of Department
Offices

Annexure V (Para 1611) Format of the forwarding letter for issue of Part.
I and Part. II Inspection Reports

Annexure VI (Para 1613) List of items to be checked during the review /
inspection of major works (completed works and works in progress)

Annexure VII (i) (Para 1616) List of Items to be checked General,
Passenger Traffic, Parcels Traffic, Goods Traffic

Annexure VII (ii) (Para 1616) List of Items to be checked (in addition to
items in Annexure VII (i) Passenger Traffic

Annexure VII (iii) (Para 1616) List of Items to be checked (in addition to
items in Annexure VII (i) Parcels Traffic

Annexure VII (iv) (Para 1616) List of Items to be checked (in addition to
items in Annexure VII (i) Goods Traffic

Annexure VIII (Para 1611 and 1616) I Top Sheet for Traffic Audit
Inspection Party

Annexure VIII (Para 1611 and 1616) II Top Sheet for Local Inspection
Party Openline and Workshop station Inspections

Annexure VIII (Para 1611 and 1616) III Top Sheet for Construction Audit
Inspection Party

Annexure VIII (Para 1611 and 1616) VI Top Sheet for Cash Office
Inspection Party

Chapter XVII Electronic Data Processing Audit (EDPA) Section

Introduction 1701
Objectives 1702
Functions and duties of EDP Audit Section 1703
Documentation 1704
Audit Review of Planning and Acquisition of EDP Facilities and use of
Resources
1705 (i)
Audit of Acquisition of EDP Facilities 1705 (ii)
Installation of Equipment and Adequacy of Testing 1706
Post Implementation Review 1707
The use of Computering Resources 1708
Audit review of EDP Installation controls 1709
Audit Review of Systems Under Development 1710
96
Audit Review of Production Systems 1711
Audit Trail and its Objectives 1712
Audit of Database Systems 1713
Review of Microcomputers / Office Automation 1714
EDP Audit Techniques 1715
Test Deck Method 1716
Work Papers of EDP Audit 1717
Chapter XVIII Costing Cell Section

Formation of Costing Cell 1801
Review of workstudy Reports 1802

P R E F A C E
This Manual is issued for the guidance of the staff in
accordance with Paragraph 87 of the Railway Audit Manual, and its
contents must be considered as subject and subsidiary to the rules in Manual
of Standing Orders (Admn.)., Manual of Standing Orders (Technical), and
the Railway Audit Manual. The Manual should not be quoted as an
authority in any correspondence outside the Office.
2. Suggestions for improvement of the Manual are invited.

Secunderabad. (K.S.RANGAMURTI)
Dated: 1
st
November, 1972 Chief Auditor.

PREFACE TO THE THIRD EDITION

The first diglot edition of the Office Manual has been
prepared to facilitate the progressive use of Hindi in office work. While
updating this edition, opportunity has been taken to revise and enlarge
the existing Office Manual to incorporate the changes and developments
that have occurred since the second edition in 1988.
The Manual has been issued for the guidance of the staff in
accordance with the instructions contained in Para 79 of the Railway
Audit Manual IVth Edition. The instructions for audit contained herein
are supplementary to those in the Manual of Standing Orders (Audit),
Railway Audit Manual, Secret Memorandum of Instructions and other
codes and regulations. This manual should not be quoted as an authority
in any correspondence outside the office.
The omissions or inaccuracies noticed in this Manual may
be brought to the notice with a view to taking corrective action.
Suggestions for improvement of the Manual are welcome.

Secunderabad. SHANTANU BASU
February, 2001 Principal Director of Audit

PREFACE TO THE SECOND EDITION
This Manual is issued for the guidance of the staff in
accordance with paragraph 79 of the Railway Audit Manual and is in
revision of the first edition issued in November 1972. In this revised edition,
the manual has been enlarged and rewritten taking into account the
provisions of the latest editions of various Railway and Civil codes and
Manuals and further modifications made in recent years. In the first edition,
extent of check, in force, was mentioned in respect of various items and the
Manual was, therefore, treated as secret. Opportunity has now been taken
to omit references to extent of check against various items in the revised
manual so as to avoid a secret grading which is not appropriate for an
Office Manual.
2. Suggestions for improvement of the Manual are welcome.

Secunderabad. (SARASWATHI R.RAO)
Dated:1
st
July, 1988 Director of Audit

PREFACE TO THE THIRD EDITION
The issue of this third edition of Office Manual has been
necessitated due to changes and developments that have taken place after
bringing out the second edition in 1988 and pending translation and
printing in diglot edition.
The Manual has been issued for the guidance of the staff in
accordance with the instructions contained in Para 79 of the Railway Audit
Manual IVth Edition. The instructions for audit contained herein are
supplementary to those in the Manual of Standing Orders (Audit), Railway
Audit Manual, Secret Memorandum of Instructions and other codes and
regulations. This manual should not be quoted as an authority in any
correspondence outside the office.
The omissions or inaccuracies noticed in this Manual may be
brought to the notice with a view to taking corrective action. Suggestions
for improvement of the Manual are welcome.

Secunderabad. SHANTANU BASU
February, 2001 Principal Director of Audit

Ch.I - Page 1 of 5
1
CHAPTER - I
ORGANISATION
101. The Comptroller and Auditor General of India(C&AG) is the Head of the Indian Audit
and Accounts Department and is the supreme audit authority in India. He is assisted by the
Deputy Comptroller and Auditor General of India for audit and administrative purposes. For
coordination of audit related work, there is a Principal Director (Railways) at HQrs. In the
field, there are eleven Principal Directors of Audit who are assisted by Directors and Deputy
Directors.
102. The Office of the Principal Director of Audit, South Central Railway, was constituted
with effect from 2
nd
October, 1966 to coincide with the formation of the new zone comprising
Secunderabad and Solapur Divisions of the erstwhile Central Railway and Vijayawada and
Hubli Divisions of the then Southern Railway. With effect from 2
nd
October, 1977, the
Solapur Division was transferred to Central Railway and Guntakal Division of Southern
Railway was transferred to South Central Railway. Further, with effect from 1
st
April 2003,
Hubli Division and Workshop & Stores / Hubli were transferred to South Western Railway
with the formation of two Divisions viz., Guntur and Nanded on South Central Railway.
103. The Principal Director of Audit, South Central Railway is responsible for auditing all
accounts relating to the South Central Railway. He/She is also responsible for auditing the
accounts relating to the Indian Railway Institute of Signal Engineering and
Telecommunications, Secunderabad and Railway Recruitment Board, Secunderabad, which
are independent units functioning directly under the control of the Railway Board. The
operation, management and accounting of the South Central Railway is organised on
Divisional and Unit basis. Consequently, the Office of the Principal Director of Audit and its
subordinate offices are correspondingly organised in a similar way for effective functioning.
104. The Principal Director of Audit is assisted by two Directors/Deputy Directors and
Secretary to Principal Director of Audit. The various sections and Branch Offices
constituting the Office of the Principal Director of Audit, its organisational set up and the
functional distribution of charges are indicated in the chart at Page 2.
The Principal Director of Audit holds direct charge of Reports, Secretariat, Special
Audit Groups and EDP and Information Technology Audit Sections and supervises and
controls the whole office including Divisional and Branch Audit Offices at Headquarters and
outstations.

Ch.I - Page 2 of 5
2
RE/BZA
(Residuary items)
Construction units at
Secunderabad,
Vijayawada and
Rajahmundry
Workshops/Lallaguda,
Hubli, Guntupalli
and Tirupati
Contract Audit
Stores
Headquarters
Books & Budget
Headquarters
Inspection
Headquarters
Expenditure
Headquarters
Establishment
Headquarters
Sr.Audit Officers/
Audit Officers
DIRECTOR
EDP & IT Audit
Special Audit Groups
(ECPA)
including Internal Audit and
Intensified Inspections
Reports
Secretary to
Principal Director
of Audit-cum-
Coordination
Sr.Audit Officers/
Audit Officers
Divisions at
Secunderabad,
Hyderabad, Hubli,
Vijayawada & Guntakal
Traffic Audit
Administration
& Bills
Sr.Audit Officers/
Audit Officers
DEPUTY DIRECTOR
PRINCIPAL DIRECTOR OF AUDIT

The Principal Director of Audit is in direct charge of Reports, Secretariat,
Coordination, Special Audit Groups and EDP & Information Technology Audit Sections and
in overall supervision and control of the whole office including Divisional and Branch Audit
Offices at Headquarters and outstations.
Ch.I - Page 3 of 5
3
105. The details of work entrusted to the sections are as follows:
I. Headquarters Sections
Administration: Deals with personnel and managerial issues of the entire office including
Branch Offices at out-stations.
Reports: Processes/finalises Draft Paras/Reviews for Audit Report and attends to further
queries and Action Taken Notes thereon.
Coordination: Coordinates the audit work among the various auditing units and deals with
related technical matters.
Special Audit Group: Conducts special reviews and investigations under the orders of the
Principal Director of Audit.
Books and Budget Headquarters Audit: Checks General Books and other connected
documents, audits consolidated Appropriation Accounts, Debt Head Report, Finance
Accounts, Capital and Revenue Accounts.
Establishment Headquarters Audit: Audits transactions relating to Gazetted and Non-
Gazetted establishments of the Headquarters of the Railway, Indian Railway Institute of
Signal Engineering and Telecommunications and the Railway Recruitment Board. Also
audits Provident Fund Accounts maintained by the F.A.&C.A.O's office.
Expenditure Headquarters Audit: Audits accounts maintained by the Central Expenditure
Section of the F.A.&C.A.O's office, accounts of catering, reviews tenders and contracts above
the prescribed value finalised at Headquarters level excluding stores and commercial
contracts and coordinates work relating to expenditure audit.
Stores Headquarters Audit: Audits the accounts maintained by the Stores Section of the
F.A.&C.A.O's office, including implementation of Stores Contracts/Purchase Orders.
Contract Audit: Reviews stores contracts(purchase orders) entered into by the Controller of
Strores.
Traffic Audit Inspection: Conducts local inspection of station accounts, issues the
Inspection Reports thereof and pursues them to finality.
Traffic Audit: Deals with audit of goods and coaching accounts both local and foreign and
miscellaneous earnings which are dealt with in the Traffic Accounts Branch of the
F.A.&.C.A.O's Office and reviews compensation claim cases. Reviews cases of remission of
wharfage and demurrage charges foregone by the Chief Commercial Manager and other
higher authorities.
Construction Headquarters Audit: Audits accounts maintained by the F.A.&.C.A.O.
(Construction), coordinates the work of various construction audit offices and undertakes
local inspections of the offices of the Heads of Department and sub-ordinate offices
(Construction) including Survey Organisation.
Workshop Headquarters Audit: Coordinates the work of Workshop Audit Sections.
Ch.I - Page 4 of 5
4
Inspection Headquarters: Undertakes local inspections of offices of the Heads of
Department (except construction offices), Indian Railway Institute of Signal Engineering and
Telecommunications, Secunderabad, Railway Claims Tribunal, Secunderabad, Railway
Recruitment Board, Secunderabad and Railway Hospital, etc.
Intensified Inspection: Deals with the inspection of offices of special importance at
Headquarters as also at outstations, as approved by the Principal Director of Audit.
Secretariat: The section is responsible for collection of data from the various sections
connected with the correspondence personally handled by the Principal Director of Audit.
Whenever ordered, this section examines arrear reports submitted by various branches and
monitors clearance of major items of arrears, cases of complaints regarding delayed payment
of settlement dues, arrears, pay fixation, increment etc. as and when brought to the notice of
the Principal Director of Audit. It also reports progress thereof to the Principal Director of
Audit periodically, attending to official visitors and listening to their complaints, grievances
and keeping a watch on such cases through a diary. The section will also be responsible for
compilation and sending of all reports to C&AG's office relating to complaints as prescribed
by C&AG's office. Generally the section will act as liaison between Principal Director of
Audit and Units.
EDP & Information Technology Audit Group: Responsible for the preparation and
updation of managerial information systems on computer and finalisation of computer
training programme and other training programme.
Costing Cell responsible for critical review of Reports of the Costing Cell, Efficiency cell and
workstudy cell and other areas of work entrusted by Principal Director of Audit. Internal
Audit responsible for ensuring correct adoptation of system framed for the purpose of Audit
under SMI, RAM, etc. (by the Units). Also responsible for Audit of charges relating to staff
of SEC Railway and EC Railway Audit Offices and P&T Audit Office.
II. Divisional Audit Offices at Secunderabad, Hyderabad, Vijayawada,
Hubli and Guntakal
Audit the accounts maintained by the Divisional Accounts Officers in respect of
Establishment, Expenditure, Books and Budget and undertake local inspections of their
respective Divisional and their subordinate offices. They also review cases of remission of
wharfage and demurrage charges foregone by the respective Divisional Commercial
Managers.
III. Construction Audit Offices at Secunderabad, Vijayawada and
Rajahmundry
Audit of accounts of construction projects undertaken by the Construction Branch of
the Railway maintained by the various Accounts Offices (Construction), both central audit
and local inspections.
IV. Workshop and Stores Audit
Lallaguda: Audits the accounts pertaining to the Loco Carriage and Wagon
Workshop/Lallaguda, Engineering Workshops/Lallaguda, Signal and Telecommunication
Workshop/Mettuguda, Stores Accounts pertaining to Mechanical and Electrical Stores
Ch.I - Page 5 of 5
5
Depot/Lallaguda, General and Signal Stores Depot/Mettuguda, Permanent Way Stores
Depot/Mettuguda and Scrap Depot at Lallaguda. Also conducts Inspections of Shops and
Stores Depots.
Hubli: Audits the accounts of Loco-Carriage and Wagon Workshop/Hubli, General and
Mechanical Stores Depot/Hubli and conducts inspections of Shops and Stores Depots.
Wagon Repair Shop, Guntupalli: Audits the accounts of Wagon Repair Shop and conducts
allied inspections of Workshop and Stores.
Carriage Repair Shop, Tirupati: Audits the accounts of Carriage Repair Shop and conducts
inspections of Workshop and Stores.

*********
Ch.II - Page 1 of 32
6
CHAPTER - II
DEPARTMENTAL REGULATIONS
201. Powers and responsibilities of Principal Director of Audit: The functions of the
Principal Director of Audit are detailed in paras 7 to 10 of the Railway Audit Manual.
In the discharge of his/her duties, the Principal Director of audit is assisted by
two Group Officers (Directors/Deputy Directors), Senior Audit Officers and Audit Officers.
202. The powers of the Principal Director of Audit relating to technical matters are derived
from the Manual of Standing Orders (Audit) - (Paras 1.1.19 and 1.1.20), and those relating to
the scope and extent of audit are detailed in the Secret Memorandum of Instructions and the
orders issued by the Comptroller and Auditor General of India from time to time. Principal
Director of Audit may relax the prescribed extent of audit as laid down in para 3 Chapter I of
the Secret Memorandum of Instructions (Railways)for the reasons specified therein. The
Principal Director of Audit has been declared as the "Head of the Department" for purposes
of exercising powers under Fundamental Rules, Supplementary Rules and General Financial
Rules. The financial and administrative powers of the Principal Director of Audit are given
in Comptroller and Auditor General's Manual of Standing Orders (Administrative) Volume
II.
203. Transfer of charge: When the Principal Director of Audit is to hand over his/her
charge, the Co-ordination Section should collect the material from the various
sections/divisions and prepare the draft memorandum of transfer of charge for his/her
approval, bearing in mind the instructions contained in para 21 of Railway Audit Manual.
(Paras 1.19 to 1.19.4 - Manual of Standing Orders (Administrative - Vol. I))
204. Powers of Director/Deputy Director: The Principal Director of Audit has declared the
Group Officer in charge of Administration to be the Head of the Office. He will exercise the
specific powers which have been laid down in General Financial Rules and other orders as
applicable to Heads of Offices, given in Annexure-I. The distribution of work between the
two Group Officers is indicated in the organizational chart in Para 104.
205. Fixing Headquarters and posting of IA & AS Officers: Fixing the Headquarters and
posting of I.A & A.S Officers are made by the Comptroller and Auditor General of India.
(Authority: Paras 1.14.2 and 3.26 of Manual of Standing Orders (Admn.) Vol.I)
Operation of In Lieu Post
206. Operation of posts of Audit Officer in lieu of I.A & A.S posts: Vacancy of not less
than 46 days of an I.A & A.S post may be filled in by creating a temporary post of Audit
Officer "in lieu" of the I.A. & A.S post with the sanction of the Comptroller and Auditor
General. In unforeseen circumstances, Principal Director of Audit may, in anticipation of the
approval of Comptroller & Auditor General, fill the vacant post of an Assistant Director by
operating an "in lieu" post. However, entrusting the duties of a Deputy Director on adhoc
basis to an Audit Officer, is to be done only with the prior approval of the Comptroller and
Auditor General of India.
7
(Authority: Paras 3.29.3.1 and 4.6.1 of Manual of Standing Orders (Admn.) Vol.I)
207. Entrusting the charge of Deputy Director to Audit Officer: The Audit Officer
appointed to perform the current duties of Deputy Director can exercise administrative and
financial powers vested in the Deputy Director but can not exercise statutory powers whether
derived direct from an Act of Parliament or rules, regulations and bye-laws made under the
authority of the Constitution (Fundamental Rules, Classification, Control and Appeal Rules,
Civil Service Regulations, Delegation of Financial Powers Rules etc.)
(Ministry of Home Affairs O.M.No. F7/14/61-Ests.(A) dated 24.1.1963).
208. Appointment of Group 'B' Officers: Principal Director of Audit is the appointing
authority for Group 'B' Officers and is empowered to fix their Headquarters.
209. Distribution of work: (a) The distribution of work among the Gazetted officers is
decided by the Principal Director of Audit subject to the general directives on the subject
issued by the Comptroller and Auditor General from time to time. A return showing the
distribution of charges among the Principal Director of Audit, Group Officers, Senior Audit
Officers and Audit Officers as on 1
st
of October is to be sent to the Comptroller and Auditor
General on 31
st
October every year.
(b) The duties of the Secretary to Principal Director of Audit are given in
Annexure-II.
D. Handing Over Notes
210. Handing over notes of officers and staff: When any officer is relieved of his charge, a
detailed handing over note in the proforma prescribed (Annexure III) should be prepared for
the information of his successor. Confidential files and other records and articles in his
personal custody should be separately listed in the handing over note. The handing over note
should be put up to the immediate superior.
Auditors/Senior Auditors should also prepare a detailed handing over note
indicating the state of work in respect of his/her folio and submit to the immediate superior.
Tour Programme
211. Tour Programme: The Senior Audit Officers and Audit Officers should draw up their
monthly Tour Programme and submit them to the Principal Director of Audit through the
Group Officer concerned before the 25
th
of the previous month, for approval.
Prior approval should be obtained, for any change in the approved tour
programme.
Property Return
212. Returns and sanctions regarding transactions relating to property: Annual returns
due from Gazetted Officers under Rule 18 of the Central Civil Services (Conduct) Rules 1964
regarding movable and immovable property should be sent to the Principal Director of Audit
in the first week of J anuary. The returns relating to Officers of the I.A & A.S should be sent
to the Assistant Comptroller and Auditor General (Personnel).
8
The sanction of competent authority as laid down in Rule 18 of the Central
Civil Services (Conduct) Rules 1964 should be obtained for transactions in movable or
immovable property, subject to the monetary values contained therein.
Payment to Group A Officers
213. System of payments to Group 'A' Officers: The pay and allowances of Group 'A'
Officers of this office are drawn by this office in the same manner as for staff and Group 'B'
officers and sent to Pay and Accounts Office (Audit). Payment of pay and allowances
(including Travelling Allowance, Medical reimbursement etc.) is arranged by Pay and
Accounts Officer (Audit), Accountant General (A&E), Andhra Pradesh, Hyderabad. While
the Pay and Accounts Officer (Audit) is responsible for maintaining General Provident Fund
accounts and detailed accounts of loans and advances drawn by the Group 'A' officers, the
Service Registers and leave accounts are maintained by this office. On transfer of an officer,
this office will issue Last Pay Certificate to the drawing and disbursing officer of the new
office and also send Service Registers duly completed.
Pension papers of the retiring Group 'A' Officers working in this office shall
be prepared by this office and sent to the Pay and Accounts Office (Audit) for verification
and issuing pension payment order/gratuity payment order.
The pay book supplied to Group 'A' Officers will be completed by the drawing
officer every month and returned to the officer(CAG's letter No. 363-TAI/197-82 dated
23.3.1983).
214. Appointment of Non-Gazetted staff: The Principal Director of Audit is the appointing
authority for Section Officers and Director/Deputy Director incharge of Administration for
all other Group 'C' staff. The senior Audit Officer/Audit Officer in charge of Administration
is the appointing authority for Group 'D' staff.
Oath of Allegiance
215. Oath of Allegiance: At the time of initial appointment to Government service, every
individual is required to take the oath of allegiance to the Republic of India as prescribed in
Para 6.2.13 - Manual of Standing Orders (A) Volume I.
A record should be maintained of such oath taken by all Government servants
of this office.
216. Conditions of Service: The Officers and staff of the Railway Audit Departments are
governed by the conditions of service prescribed in Fundamental Rules and Supplementary
Rules except for Travelling Allowance for which they are governed by the Railway
Travelling Allowance Rules. For purposes of scales of pay and leave, they are governed by
the Central Civil Services (R.P) Rules, 1996 and Central Civil Services (Leave Rules) 1972
respectively. All the officers and staff of South Central Railway Audit Office are governed
by the Central Civil Services (Pension Rules) 1972 and Family Pension Rules, 1964.
Award Scheme
217. Award Scheme: "Award Scheme" intended to stimulate original thinking among the
members of staff has been introduced by the Government of India with a view to improving
9
the efficiency and productivity in the field offices. This scheme has been communicated by
the C&AG for implementation in IA & AD offices in December 1999. Under this scheme,
the suggestions made by staff and officers have two components viz. (i) award for
suggestions from employees and the public and (ii) high performance award for Central
Government operational staff.
The scheme covers all categories of staff technical/non-technical below the
rank of J oint Secretary to the Government of India (i.e. equivalent of HOD rank in IA & AD).
Awards will be given for specified categories i.e. financial savings through reduction of man
power, efficiency in providing the services through reduction of time taken, procedural
improvements, reduced travel, lesser paper work etc.
Awards will be by way of cash awards as mentioned below:
i) The amount of award would be 10 percent of the saved amount and upto an amount of
Rs.1 lakh per suggestion after financial savings are realized with the implementation
of the suggestions. In case the Departmental Evaluation Committee determines the
suggestion prima-facie as productive of savings, an immediate award for the
suggestion can be given upto Rs.10,000 and subsequent award upto Rs.1 lakh (i.e.
advance award and final award together) can be considered after the savings are
actually realized.
ii) In case of other suggestions accepted, an amount upto Rs.10,000/- per suggestion
would be given.
iii) In case of outstanding performance, an amount of Rs. 10,000/- per employee would
be given.
All suggestions would be scrutinized by the Departmental Evaluation
Committee headed by the Principal Director of Audit and two Directors/Deputy Directors
(one of whom may be the officer concerned with the subject matter of the suggestion under
consideration).
Only viable suggestions should be forwarded to the Principal Director of
Audit so as to reach by end of April each year. Suggestions found worthwhile by the
Departmental Evaluation Committee would be forwarded to the Department of
Administrative Reforms and Public Grievances through C&AG's office.
(Authority: CAGs Lr.No.662-Audit/O&M/248-99 dated 27.12.1999)
218. Promotion of an Assistant Audit Officer as Audit Officer: On promotion of an
Assistant Audit Officer as Audit Officer or an Audit Officer as Senior Audit Officer a
notification of the promotion should be forwarded for publication in the Gazette of India.
(Para 30 of Railway Audit Manual).
Transfers & Deputation
219. Transfers from one office to another: Section Officers including Section Officers'
Grade Examination passed Auditors/Senior Auditors are not ordinarily transferred to any
other Audit and Civil Accounts Offices. However, the Comptroller and Auditor General may
transfer such persons to any other office within I.A & A.D or to any office under the Central
10
Government on such terms and conditions as may be determined by him in each case.
Mutual transfers of other staff from one office to another of the I.A.& A.D are permitted in
deserving cases. Seniority appropriate to the lesser of the two lengths of service as
Auditor/Senior Auditor/Clerk-Typist/Group-D (as the case may be) should be given to both
the employees in the new offices to which they are transferred.
(C&AG's letter No. 2200-NGE.III/41-6511 dated 13.9.1965).
The scheme of Unilateral transfer in all cases within IA & AD and from
Ministries/Departments to IA & AD has been dispensed with.
(C&AG's letter No. 1005-N(App)/24-97 dated 27.08.1997).
220. Deputation: Deputations, including those on foreign service terms, of officers and staff
are governed by the general conditions prescribed by the Government of India from time to
time, (Appendix 5 to FR/SR).
The following is the rate of Deputation (Duty) allowance.
i) 5% of basic pay subject to maximum of Rs. 500/- for transfer within the station; and
ii) 10% of basic pay subject to maximum of Rs. 1000/- in other cases.
The Deputation (Duty) Allowance shall be further restricted as under:-
(i) Pay plus Deputation (Duty) Allowance shall not exceed the maximum of the scale
of pay of ex-cadre post; and
(ii) Pay plus Deputation (Duty) Allowance shall at no time exceed Rs.22,400/- p.m.
The restriction under FR 35 mentioned in OM dated 09.12.1986 will now be
as under:-
(a) For employees in receipt of basic
pay upto Rs.8,000/- p.m.
15% of the basic pay subject to a
maximum of Rs.1,000/- p.m.
(b) For employees in receipt of basic
pay above Rs.8,000/- p.m.
12 of the basic pay subject to a
maximum of Rs.1,000/- p.m.

While the initial selection for deputations of Senior Audit Officers, Audit
Officers, Assistant Audit Officers and Section Officers will be done by the Comptroller &
Auditor General, the formal sanctions to the transfer on foreign service as well as to
extension of tenure on foreign service to Central/State Governments etc. will be issued by the
In respect of members of staff deputed on foreign service terms, contributions
towards pension and leave salary are to be recovered.
(Authority: Deptt of Personnel & Trg OM No.6/30/86-Estt(Pay-II) dated
09.12.1986 and OM No.2/8/97-Estt(Pay-II) dated 11.03.1998)
11
221. Permission to join officially sponsored Organisation: Permission to join officially
sponsored organisations such as Home Guards, St. J ohn Ambulance Brigade etc. is granted to
members of staff subject to the condition that it does not interfere with the efficient discharge
of their official duties.
222. Permission to join Educational Institutions: Permission to join Educational
Institutions outside office hours is granted to staff by the Principal Director of Audit in
deserving cases subject to the condition that it does not interfere with the efficient discharge
of their official duties and may be withdrawn at any time without assigning any reason
whatsoever. Such permission does not in itself exempt the employee from transfer to another
station during the course of the academic year.
Representations
223. Representations: The representations from Government servants on service matters
may be broadly classified as follows:-
(1) Representations/complaints regarding non-payment of salary/allowances or
other dues;
(2) Representations on other service matters;
(3) Representations against the orders of the immediate superior authority; and
(4) Appeals and petitions under statutory rules and orders (e.g. Classification,
Control and Appeal Rules and the petition Instructions).
In regard to representations of the type at Sl.Nos. 1&2 above, if the
government servant has not received a reply thereto within a month of its submission, he
could address or ask for an interview with the next higher officer for redressal of his
grievances.
Representations of the type at Sl.No.3 above would be made generally only in
cases where there is no provision under the statutory rules or orders for making appeals or
petitions.
In regard to representations of the type at Sl.No.4 above, although the relevant
rules or orders do not prescribe a time limit for disposing of appeals and petitions by the
competent authority, all such appeals and petitions are disposed off within reasonable time.
In case it is anticipated that it cannot be disposed off within a month, an acknowledgement or
an interim reply should be sent to the government servant within a month.
As such, submission of representations directly to higher authorities by-
passing the prescribed channel of communication would be viewed seriously and appropriate
disciplinary action taken against those who violate the instructions under rule 3(1) (iii) of the
CCS(Conduct) Rules 1964.
The representations should be couched in polite and courteous language.
(Authority: Deptt of Personnel & Trg OM No.11013/7/99-Esstt(A) dated 01.11.1999)
12
224. Maintenance of Secrecy in official matters: A government servant may not
communicate directly or indirectly to other Government servants or to non-officials or to the
Press any documents or information which may have come into his possession in the course
of his public duties. Retention of such documents or information by a Government servant in
his personal custody for use in the furtherance of his personal interest e.g. in making
representations to the authorities concerned, is not only objectionable but also an offence
under Section 5 of the Official Secrets Act, 1923. A person contravening the provisions of
this Act renders himself liable to prosecution and/or departmental action under Discipline and
Appeal Rules. No information or document or copy thereof, in contravention of the above
instructions or infringing the provisions of the Official Secrets Act, should be furnished to
outsiders even with the permission of a Gazetted Officer.
Conviction
225. Conviction of Government Servants in a Court of Law: A government servant
convicted in a Criminal Court should inform his official superior of the fact of his conviction
and the circumstances connected therewith as soon as it is possible for him to do so. Failure
to do so will be regarded as suppression of material information and will render the employee
liable to disciplinary action on this ground alone, apart from the penalty called for on the
basis of the offence on which his conviction was based.
(Authority: Government of India, Ministry of Home Affairs O.M. No.25/70/49-
Ests. Dt.26.12.1949).
As soon as a Government servant is convicted in a criminal charge, he may, in
appropriate cases, be placed under suspension, if not already suspended.
Dismissal, removal or compulsory retirement in cases of conviction is not
automatic; each case should be examined on its merits and orders passed imposing the
appropriate penalty only where a Government servant has been convicted in a court of law of
an offence which is such as to render his further retention in public service prima-facie
undesirable.
(Authority: Government of India, Ministry of Home Affairs O.M.
No.F.43/57/64-AVD(III) dt.29.11.1966 and O.M. No.371/3/74-AVD(III) dt.19.9.1975)
226. Government servants arrested on criminal charge: A government servant who is
arrested for any reason should intimate the fact of his arrest and the circumstances connected
therewith to his official superiors promptly even though he might have subsequently been
released on bail. On receipt of the information from the person concerned or from any other
source, the departmental authorities should decide whether the facts and circumstances
leading to the arrest of the person call for his suspension. Failure on the part of any
Government servant to so inform his official superiors will be regarded as suppression of
material information and will render him liable for disciplinary action on this ground alone,
apart from the action that may be called for on the outcome of the criminal case against him.
(Government of India, Ministry of Home Affair's O.M.No. 30/59/54-Ests.(a)
dated 25.2.1955 received under D.R.A's endorsement No. E.8-29/55 dated 26.3.1955.
Confidential Reports
13
227. Confidential Reports: Confidential Reports of all members of staff, excluding Group
'D', based on their performance and conduct during the period of report are written up
annually in April or as otherwise required by the supervisory officials. However, no report is
to be written wherever the Reporting Officer has supervised the work of the official for a
period less than three months only during the reporting year. In such cases the Reporting
Officer should, at the top of the report, mention the period of gap indicating the reasons for
which a report for that period has not been written.
Gradation List
228. Gradation List:
a) A gradation list of Officers and staff as on 1
st
March of every year should be prepared
for the general information of the office. The list should be forwarded in triplicate to
the Comptroller and Auditor General before 15
th
J une of every year.
b) The pay scales (Central Civil Services (Revised Pay) Rules 1997) attached to the
Group 'A', 'B' 'C' and 'D' posts of this office are as under:
GROUP DESIGNATION SCALE
Group A Principal Director of Audit

Director

Deputy Director
18400-500-22400

14300-400-18300
(SG.of J r.Admn. Grade)
12000-375-16500
(J unior Admn. Grade)

10000-325-15200
(Sr. Time Scale)
8000-275-13500
(J unior Time Scale)
Group 'B' Senior Audit Officer
Audit Officer
Sr. Data Processor
Asst. Audit Officer
Private Secretary to Pr.D.A
8000-275-13500
7500-250-12500
7500-250-12500
6500-200-10500
6500-200-10500
Gr'B' Non-Gaz.

Group 'C'

Section Officer
Supervisor
Welfare Assistant
Senior Auditor
Auditor
J unior Translator(Hindi)
Stenographer - Grade I
5500-175-9000
5500-175-9000
5500-175-9000
5000-150-8000
4000-100-6000
4500-125-7000
5500-175-9000
14

Stenographer - Grade II
Stenographer - Grade III
Console Operator
Data Entry Operator
Clerk/Typist
Hindi Typist
Staff Car Driver
Record Keeper(Selection Gr.)
Record Keeper(Fun. Sele. Gr.)
Record Keeper(Ordinary Gr)
5000-150-8000
4000-100-6000
4500-125-7000
4000-100-6000
3050-75-3950-80-4590
3050-75-3950-80-4590
3050-75-3950-80-4590
3050-75-3950-80-4590
3050-75-3950-80-4590
2750-70-3800-75-4400
Group - 'D' J unior Gestetnor Operator
Daftry/Senior Peon
Sepoy/Mali/Watchman
Safaiwala
2610-60-3150-65-3540
2610-60-3150-65-3540
2550-55-2660-60-3200
2550-55-2660-60-3200

LEAVE
229. Casual Leave: Every Government servant is entitled to a maximum of 8 days casual
leave in a calendar year. Casual leave is treated as duty for all purposes. Casual leave should
not be availed of without the prior sanction of the competent authority, except under
unavoidable circumstances such as sudden illness. Not more than 5 days casual leave may be
granted at a time except under exceptional circumstances and with the prior approval of the
Director / Deputy Director. Casual leave can be combined with holidays compensatory leave
and Restricted Holidays. However, when the total period of absence exceeds 8 days at a
time, the prior sanction of the Deputy Director is necessary. Casual leave cannot be
combined with regular leave. (Government of India, Ministry of Personnel, PG & Pensions,
Department of Personnel and Training O.M.No. 28016/3/98-Estt(A) dated 15
th
June 1998).
A casual leave account register in the prescribed form given below should be
maintained by each section. One page should only be used for whole year for all the
employees in one section, appropriate indication being given in the relevant column against
the date on which the Casual leave or Restricted Holiday is availed of by an individual and
the entry should be attested by the Sanctioning Authority promptly by means of dated
initials.(CAG's letter No. 3687-N.3/88/85 dated 18.10.1985).
Proforma
CL and RH account for the year ______________
Section/Division ____________________
15
S.No Name CL taken on (dates)
1 2 3 4 5 6 8
RH taken on (dates)
1 2
Remarks
230. Authority to sanction Casual Leave: a) Applications for Casual Leave and Restricted
Holidays of the Branch Officers are to be submitted to Principal Director of Audit for
sanction. (Authority: Circular No.Au/COR/I/Vol.VI dated 8/9.1.2001)
b) Director/Deputy Director has been delegated with full powers to sanction Casual Leave to
Senior Audit Officers/Audit Officers.
a) The extent of powers delegated to other authority is as under:
Competent authority
(i) Asst. Audit Officers and Section Officers
(Period of casual leave)
Upto 5 days at a time.
Branch Officer
(ii) Group 'C' staff other than Stenos and
Section Officers
(period of Casual leave)
Upto 3 days at a time

Upto 5 days at a time
Assistant Audit Officer/
Section Officer

Branch Officer
(iii) Stenographers upto 5 days By Controlling Officer
(iv) Group 'D' staff:
(period of casual leave)
a. Upto 3 days at a time.

b. Upto 5 days at a time
a. Section Officer/Asst.
Audit Officer in charge
of Administration in
Headquarters and
Divisions/Units.

b. Branch Officer in
charge of
Administration in
Headquarters/Divisions
/Units.
Note:- Sanction of Deputy Director/Director will be necessary in cases where the total
period of absence at a time including Casual leave and connected holidays exceeds
8 days.
(Authority: P.O.O. No. 141 dated 08.11.2000)
231. Station Leave: Permission to leave Headquarters during holidays or casual leave should
be specifically applied for, furnishing leave address, and obtained from the authority
competent to sanction casual leave. During regular leave also, address should be left with the
office, but no formal permission to leave Headquarters is necessary.
A monthly reconciliation of the attendance register with the leave advices and
Casual Leave account should be carried out in the first week of the following month.
16
232. Compensatory Leave: Whenever staff are required to work on Sundays or other public
holidays at Headquarters or at out-stations during inspection, such staff may be granted
compensatory leave, by the authority competent to grant casual leave. When such attendance
is required for half-a-day, only half-a-day's compensatory leave is admissible. The
compensatory leave granted to staff should be recorded in the Casual leave Register.
(Para 86 of Railway Audit Manual)
The accumulation of compensatory leave will not be subject to any limit, but
such leave should normally be availed of within a month of its becoming due. A
compensatory leave granted in lieu of duty performed can be prefixed or suffixed to regular
leave or casual leave.
(Ministry of Finance letter No. F.9(17)E.II(B)/65 dated 27.11.1965).
233. Special Casual Leave: Central Government employees are eligible for Special Casual
Leave in respect of the following:-
(1) Sports events.
(2) Cultural activities.
(3) Mountaineering/Trekking expeditions
(4) Family Planning
(5) Re-employed ex-servicemen
(6) Union/Association activities
(7) Natural calamities and bundhs etc.
(8) During elections and other purposes.
The maximum number of days in a calendar year admissible and the
conditions under which special casual leave is to be sanctioned are given in Chapter 4 of
Swamys Complete Manual on Establishment & Administration.
The grant of special casual leave will be subject to the general principles laid
down in the FRs/SRs Part III. The power of granting special casual leave will be exercised
by the head of the department.
Special casual leave can be combined either with regular leave or casual leave,
but not with both types of leave.
234. Restricted Holidays: Every Government servant is entitled to avail himself of two
Restricted Holidays from out of the list of Restricted Holidays for the year. The Restricted
Holiday should be got sanctioned by the sanctioning authority, in advance, before availing it.
The authority competent to sanction leave can also grant permission to avail of Restricted
Holiday. Restricted Holiday can be combined with other holidays, Casual leave and regular
leave, prefixed for suffixed.
235. Passes/P.T.Os: The staff are eligible for passes/PTOs as applicable to Railway
employees of the corresponding status. The issue of Passes/PTOs is also subject to the
instructions issued by the General Manager, South Central Railway. Applications for
passes/PTOs should be submitted in the prescribed form, normally 3 days in advance, except
in emergent cases.
17
The authority empowered to issue the Passes/PTOs to the officers/staff is as
under:
Officers authorised Units Type of Passes/PTOs
Audit Officer/Sr. Audit
Officer
(Administration)
All the sections at
Secunderabad
Privilege and duty
passes of Group 'A'
Officers, school
passes, passes on
transfer account,
complimentary passes,
passes on sports
account etc. to all
officers and staff.
Asst. Audit Officer
(Administration)
ADMN, COR, EDP
REPORTS, ,SAG,
BILLS & IA
Privilege passes/PTOs
and duty cheque passes
both Foreign and
Home lines to Group
'B' ,'C' and 'D' officials.
Asst. Audit Officer to
be nominated by Audit
Officer/Sr.Audit
Officer(THQ)
TAI,THQ,FTA,LTA &
SHQ
both Foreign and
Home lines to Group
Officer/Sr.Audit
Officer (W&S)
Lallaguda.
W&S/LGD Privilege passes/PTOs
both Foreign and
Home lines to Group
be nominated by
Divisional Audit
Officer/Secunderabad.
SC DIVN. Privilege passes/PTOs
both Foreign and
Home lines to Group
be nominated by
Divisional Audit
Officer/Hyderabad.
HYB DIVN Privilege passes/PTOs
both Foreign and
Home lines to Group
Asstt. Audit Officer to
Officer/Sr.Audit
Officer (Construction)
CONSTRUCTION Privilege passes/PTOs
both Foreign and
Home lines to Group
Officer/Sr.Audit
EHQ, XHQ, IHQ,
BHQ and CA
both Foreign and
18
Officer (XHQ & BHQ) Home lines to Group
NOTE : (1) Duty cheque passes will be issued on the authority of written
requisition signed by the Branch Officer.
(2) Passes/PTOs for the nominated Asst. Audit Officer will be issued by
any Gazetted Officer other than himself.
(3) The Asst. Audit Officer authorised to sign the passes shall sign on
behalf of the Principal Director of Audit (i.e. for Principal Director of
Audit).
Branch Officers at
outstations
Divisions/Construction/
Workshop and Stores
i)Privilege passes/
PTOs to the nominated
Assistant Audit
Officer,
ii) Renewal of card
passes.
iii) School passes,
transfer passes, passes
on sports account and
complimentary passes.
iv) Duty cheque passes
to Group 'B', 'C' and
'D' officials both
Foreign and Local
lines (Headquarters
permi-ssion may be
obtained before issuing
the duty cheque passes
on Foreign line).
Asst. Audit Officers
at out-stations.
Divisions/Construction/
Workshop and Stores
to Group'B', 'C' and 'D'
officials.
NOTE: In places where a Branch Officer is not Headquartered, the nominated
Assistant Audit Officer may sign the duty cheque passes (Local and foreign) to Group 'C' and
'D' officials on the basis of approved inspection programme subject to ratification by Branch
Officer subsequently.
(Authority: POO Nos. 94 dated 30.9.1986 and 102 dated 4.6.1987).
Before issue of passes/PTOs, the Auditor/Senior Auditor dealing with the
issue of Passes/PTOs should scrutinize the application with reference to the rules contained in
the Pass Manual and the declarations of family members obtained from the employees. The
pass account should be posted simultaneously, and the entries attested by the Pass Issuing
Officer. All applications for cancellation of passes and credit to pass account should be
submitted to the Branch Officer concerned for orders and those received from the Branch
Officers to the Deputy Director/Director in charge of (Administration). After the expiry of
the admissibility period of passes, the employees should return the passes to the pass issuing
authority and also a declaration in the prescribed form regarding utilisation or otherwise of
19
Passes. The Auditor/Senior Auditor will watch their receipt and take action to call for them,
if not received in time.
All the Passes and P.T.Os issued during the last quarter should be counter
checked by a Sr. Audit Officer and a report will be furnished to Headquarters for correct
accountal / issue of Railway Passes. The officer nominated for the check of Railway Passes /
PTOs issued during the preceding quarter will be held responsible for any irregularity noticed
subsequently in the entitlement of Railway Passes / PTOs to any applicant. Any
interpretation of the rules on the entitlement of Railway Passes may be referred to
Headquarters so that a decision may be taken in consultation with the Ministry if required.
No officer / staff may obtain any Railway Passes / PTOs from officers / branches of Zonal
Railway Administration. In addition to the checks, it may also be ensured that used / expires
Passes are being returned by the employees in time and pasted to block foils as per rules.
(Headquarters lr.No. 508/Railway/Passes-PTOs/17-11/2005 dated
18.08.2005. read with Lr.No. 2507/Railway/Passes-PTOs/17-11/2005 dated 14.11.2006)
Metal Passes: The Audit Officers are eligible for Metal Passes as applicable to Railway
Officers of the corresponding status. The applications for issue of Metal Passes to the Audit
Officers should be forwarded to the General Manager's office after obtaining the specific
sanction of the Head of the Office {Deputy Director (Administration)}. (Authority - C&AG's
D.O.Letter No. 121-RA.IV/17-21/89 dated 19
th
July 1993).
236. Custody of Passes and PTOs.: The Stock Register, Pass/PTO books in use, unused
blank Pass/PTO books and blank card passes etc. should be kept in the custody of the Audit
Officer/Sr.Audit Officer (Administration) and the Branch Officer concerned. Duty Card
Passes in use will be in the custody of the Pass Issuing Authority who will maintain the
Register of Movement of Card Passes.
A Register of Residential Card Passes should also be maintained recording the
issue of such passes to staff whose acknowledgement should be obtained. The Stock
Registers should be preserved permanently.
VERIFICATION
237. Verification of Passes and PTOs: On receipt of Pass and PTO books from the Railway
Administration, the continuity of the number of the foils should be checked and a certificate
to this effect recorded on inner page of the outer cover of the books and also in the Stock
Register. Pass and PTO books required by Divisions/Unit offices will be supplied by Audit
Officer/Sr.Audit Officer (Administration).
The verification of all blank foils of books in stock or in use should be done
half-yearly i.e. in J anuary and J uly each year and a certificate to this effect recorded in the
Stock Register as also on the outer cover of the books. Similar verification should also be
carried out whenever there is a change in the incumbents responsible for the custody of these
books and a certificate to this effect recorded in the Stock Register by the Officers handing
over and taking over respectively.
238. Passes and Privilege Ticket Orders to Officers/staff including I.A.&.A.S. Officers:
Officers, including I.A.&.A.S. officers and other members of staff, working in Railway Audit
Department are entitled to Passes and PTOs at the scales prescribed from time to time for the
20
Railway employees of corresponding status. Privilege Passes and PTOs may be issued to
I.A.&.A.S. officers proceeding on leave for more than four months provided they have
completed not less than one year service and the Comptroller and Auditor General of India
certifies that the Officer is likely to return to the Railway Branch on the expiry of leave. For
periods of leave not exceeding four months including leave preparatory to retirement, there is
no objection to the issue of the Passes before or during the leave period, to be availed of
during the leave period. However, this privilege cannot be granted either before or during the
leave after it becomes known that on expiry of the leave, the officer is being posted out of the
Railways.
(Railway Boards letter No.E(G)58P55-20/1, dated 14
th
April, 1960 and
Comptroller and Auditor General of Indias endorsement No.512-RAI/T-17-2/63 dated 16
th

February, 1963 and Comptroller and Auditor General of Indias letter No.431-87-
RAIV/T/17-11/84 dated 24.8.1984).
239. Non-Railway Deputationists: Non-Railway Officers and staff on deputation to the
Railway Audit Offices are eligible for Passes and PTOs as admissible to serving Railway
employees from time to time provided the period of deputation is expected to last for one
year or more.
(Railway Boards letter No.E(G) 59PS.5-15/1 dated 18
th
May, 1960 and
Comptroller and Auditor General of Indias letter No.781-RAII/T-7-23/58 dated 3
rd
June,
1960).
Officers and staff of the Railway Audit Department on deputation to Non-
Railway Offices are eligible for privilege passes and PTOs as admissible in their parent office
for a maximum period of four years.
However, in the case of deputation to Public Sector Undertakings, the
eligibility is as under:-
i) Posts which are declared to be top posts - 2 years
carrying the pay scale of Rs.18400-22400
and above
ii) Other posts - 3 years
(Railway Boards letter No.E(W)75PS-5/15 dated 18.3.1976).
240. Passes on Sports Account: Passes on sports account are admissible to the staff of
Railway Audit Department for participating in sports organised by the Central Sports
Committee of the Indian Audit and Accounts Department.
(Railway Boards letter No.E(Trg.)63-PS5-20 dated 16.1.1963).
241. The Railway Audit staff are not entitled to the following concessions which are
admissible to Railway servants only.
i) Passes on first appointment.
ii) Special passes to office bearers of Staff Association.
21
(Railway Boards letter No.E(G)58PS-5-20/1 dated 6.6.1961)
242. Availing of Passes/PTOs from outside Offices/Railways: Whenever an employee
obtains a Pass/PTO for him or his family from another office/Railway, in case of extreme
emergency, he should furnish the Pass Issuing Authority of his office the details of Pass/PTO
so availed by him soon after his return to Headquarters and ensure its proper debit. Passes on
School account and Post retirement complimentary passes should not be taken or issued from
any office/Railway other than the office from which these facilities are being availed of.
(Chief Personnel Officer/Secunderabads Sl.Circular NO.64/83 dated
8/11.11.1983.)
243. Declaration of family members/dependent relatives: A declaration of family
members and dependent relatives of officers/staff for the purpose of privilege passes/PTOs
should be obtained in the prescribed form and kept on proper record. New declarations
should be obtained with effect from 1.1.1988 for the next five years. The declaration is to be
submitted even for self also. Declaration from new entrants should be obtained soon after
their appointment. Bonafide certificates from the Recognised Educational Institutions should
be submitted at the beginning of every academic year viz. J une/J uly in respect of student
sons/daughters/dependent brothers of age 21 years and above, if they are to be included in the
Privilege Pass/PTO. As and when an employee is transferred, the declaration form should be
sent to the office of transfer along with pass account of that year. The pass account register
should be maintained duly indicating the details of family members, dependent relatives, age
etc. based on the declarations furnished.
(Chief Personnel Officer/Secunderabads Sl.Circular No.13/83 dated
29.1.1983).
244. Counting of past service rendered in the Civil Offices for determining the class of
accommodation: The concession of eligibility for first class Pass/PTO on crossing the pay of
Rs.5000/- allowed to the Railway Audit staff who have been appointed prior to 1.8.1969 is
not admissible to those appointed in Civil offices prior to 1.8.1969 and subsequently
appointed to Railway Audit Department on transfer basis. In those cases the pay limit of
Rs.5375/- will apply.
(Comptroller and Auditor General of Indias letter No.991-
RA.III/RA.II/T/17.12/77 dated 17.9.1982, Railway Boards letter No.E(W)87/06/781/3 dated
27.3.1987 and Railway Boards letter No.E(W)97/PS5/-1/62 dt.1.2.1999 and E(W) 97-PS-5-
1/30 dt.14.1.2000).
PERIOD OF AVAILABILITY
245. Period of availability of Pass/PTO to those who are about to retire: Privilege
Passes/PTOs to those who are about to retire may be issued for the normal period of
availability admissible under the rules even if it is beyond the date of superannuation of the
employee subject to the condition that the total number of passes issued to an employee in
service as well as after retirement should not exceed the total number to which the employee
was entitled for, while in service.
(Railway Boards letter No.E(W)78-PS-5-2/3 dated 28.4.1980).
22
MEDICAL ATTENDANCE
246. Medical Attendance:
(i) The officers and staff are governed by the Central Services (Medical Attendance)
Rules, 1944 as amended from time to time. They are entitled to reimbursement of
medical expenses incurred in connection with the treatment of themselves and
members of their family as defined in the said rules.
(ii) However, Officers and staff working at Headquarters (Secunderabad) are governed by
the Central Government Health Scheme. C.G.H.S. Dispensaries are functioning at
different places within the Municipal limits of Secunderabad and Hyderabad. All
those employees who are residing within the localities covered under C.G.H.S.
dispensaries prescribed, are governed by the C.G.H.S. A compulsory monthly
contribution on a graded scale shall be levied on all entitled classes of Government
servants.
(Director General of Health Services circular No.35-1/76-CGHS dated 25.2.1976).
(iii) As per the compilation of CGHS (Orders and instructions), a Government servant
cannot opt out of the CGHS if he/she is eligible to be covered under the scheme.
(Director General of Health Services letter No.12011-1/83-CGHS dated 28.1.1983).
(iv) The Railway Audit staff are not eligible for Medical Attendance in Railway Hospitals
except to the extent provided in Railway Boards circular letter No.E/46-ME-39/3
dated 24.6.1946(Para-18 Railway Audit Manaul). However, Comptroller and
Auditor General of India has clarified that even though the normal entitlement of an
employee in Railway Audit is the Central Services(MA) Rules or the CGHS (where in
operation), the employee can exercise an option to avail of the Railway Medical
facilities for himself and dependents in terms of Para-18 of Railway Audit Manual.
An employee will be governed either by Railway medical facilities or the Civil
Medical facilities but not both simultaneously. The option once exercised is final
except where there is a change of residence or station on account of transfer.
(Comptroller and Auditor General of Indias letter No.3309-NGE.I/112-78
dated 24.9.1980).
247. Residential Accommodation:
(i) Although bungalows and quarters cannot be built specifically for the Railway Audit
Department, the Railway Board have decided that the Railways should take into
consideration these staff also for building quarters except at places where the Central
Public Works Department takes the responsibility for providing houses for the Audit
Department and the existing Railway quarters may be allotted to the Railway Audit
staff as available and circumstances may permit.
(Railway Boards letter No.53/W/190/28 dated 5.2.1955 and 59/WII/RR/45
dated 28.11.1960).
23
(ii) The allotment of Railway quarters to the Officers and staff of Railway Audit
Department and recovery of rent, water charges, electric current etc. is on the basis of
the same criterion as applied to the Railway staff.
(Railway Boards letter No.F(X)1-59-RNS/2 dated 9.7.1959).
(iii) The staff of the Railway Audit Department occupying Railway accommodation may
be permitted to retain the Railway accommodation for two months on normal rent
after their transfer to out stations.
(Railway Boards letter No.E(G)81 RN 2-65, dated 6.11.1981 and
No.E(G)/83-RN-2-6 dated 17.12.1983) Pages 180 and 263 of the file No.AuA/IX/9/0/Vol.I.
(iv) The Railway Audit staff doing Railway Audit work and in occupation of Railway
quarters at the time of their retirement/death are allowed to retain the Railway
accommodation as under:
(i) Retirement:- For a period of four months from the date of retirement on
payment of normal rent and the next four months on educational or sickness
account on payment of double the assessed rent or double the normal rent or
ten percent of the emoluments whichever be the highest.
(ii) Death:- The family of a Railway Audit staff who dies while in service may be
permitted to retain the Railway quarter for a period of 24 months on payment
of normal rent from the date immediately after the date of death of an
employee.
(Railway Boards Lr.No.E(G)98 QR 1-11 dated 22.1.99).
Retention of Railway quarters for the prescribed periods as indicated above
may be allowed by the General Manager of the Railway Administration concerned on receipt
of proper requests therefor.
(Railway Boards letter No.E(G)83-RN-2-6 dated 31.12.1986 received under
Comptroller and Auditor General of Indias endorsement No.18-RAII/14-1/78 dated January
1987, Page 64 of file No.Au/A/IX/9/0/Vol.II).
TRAVELLING ALLOWANCES
248. Travelling Allowance: Officers and staff of the Railway Audit Department are
governed by the Railway Travelling Allowance Rules. This also applies to an Accountant
General holding additional charge of the post of Principal Director of Audit for his tours as
Non-Railway deputationists to Railway Audit Offices are governed by the
Railway Travelling Allowance Rules during their term of deputation. Deputation allowance
is also reckoned as pay for determining the grade of employee.
Officers and staff of the Railway Audit Department proceeding on or returning
from deputation are governed by the Travelling Allowance Rules of the borrowing
department.
24
249. Childrens Educational Allowance, Reimbursement of Tuition Fee and payment of
Hostel subsidy: All members of staff, irrespective of pay limit are eligible for Childrens
Educational Allowance, reimbursement of Tuition Fee and Payment of Hostel subsidy in
accordance with the Government of Indias orders contained in Ministry of Personnel,
Department of Personnel and Training O.M. No.1801/1/87-Esstt. (Allowances) dated
31.12.1987 as amended from time to time. (Please see paras 479, 480 and 481 of this
Manual).
ADVANCES
250. Advances: The following are the advances permissible to the Railway Audit Staff:
a) Interest bearing Advances for :
i) Purchase, extension or construction of a house/flat, including acquisition
of land therefor.
ii) Purchase of Motor Cars, Scooters etc.
iii) Purchase of Personal Computers.
iv) Purchase of other conveyances.
v) Purchase of Fans.
b) Interest free advances:
i) Advance of leave salary.
ii) Festival Advance.
iii) Advance to Government servants affected by floods cyclones etc.
iv) Advance of pay on transfer.
v) Advance of Travelling Allowance on tour/transfer.
251. Staff Associations: Recognition to the staff associations is granted by the Comptroller
and Auditor General of India. The following is the recognised staff association in this office:
South Central Railway Audit Officers Association.
Representations from staff associations addressed to higher authorities may
not be forwarded if:
i) they contain disrespectful or improper language.
ii) the representation is on matters of local interest on which Principal Director of
Audit can take a decision.
iii) the representation merely repeats old demands/grievances rejected or not
accepted or on which definite policy decision exists.
Contents of telegraphic representations should be approved by the Head of the
Office.
Apart from routine notifications relating to
(a) holding of meetings
(b) elections and results thereof
25
(c) statement of accounts of association, and
(d) reminders to members about their dues,
the display of notices by the recognised association in the office premises requires prior
permission. Such notices shall be displayed on the notice board specified for the purpose.
INSPECTION OF OFFICE
252. Inspection of Principal Director of Audits office by the Principal Director of
Inspection: Principal Director of Inspection attached to the Comptroller and Auditor General
of Indias office inspects this office periodically (generally once in two years). The
inspection will generally consist in examining office administration and other procedural
aspects.
(Para No.1.17 MSO(A) Vol.I).
Replies to Draft Observation Slips should be approved by the Principal
Director of Audit, if not issued over his signature except in the case of Branch offices where
the replies should be signed by the Head of that office.
26
Annexure I (Para 204)
The administrative and financial powers of the Comptroller and Auditor
General and the Heads of Departments, contained in various publications of the Central
Government, are shown in Sections A to I of the Manual of Standing Orders (Admn.) Vol.II.
The administrative and financial powers specifically delegated to the Head of
the Office are given below. The Deputy Director of Audit (Administration) has been
declared to be the Head of office vide P.O.O. No.2, dated 4.10.1966 (See item No.8 of Section
A to Manual of Standing Orders (Admn.) Vol.II.
S.No Nature of Powers Extent
of
Powers
Authority
1. To act as Appointing and
Disciplinary authority for Group
C (upto Sr.Auditor)
Full Section E of
MSO(A) Vol.II
(Page 78)
2. Terminating the services of a
temporary Government servant.
Full Item No.1 of
Section G of
MSO(A)-Vol.II
3. Requiring a non-gazetted
Government servant to furnish a
statement of movable or
immovable property held or
acquired by him/her or on his/her
behalf or by any member of
his/her family including the
details of the means by which or
the source from which such
property was acquired.
Full Item No.21 of
Section F of
MSO(A) Vol.II.
4. To sign the communal roster
where Principal Director of Audit
himself/herself is the appointing
authority.
Full Principal Director
of Audits orders
dated 29.6.1975
(Page 137 of File
No.Au/Admn/IX/
23/Vol.I)
5. Grant of increments to Non-
Gazetted staff (other than Section
Officers).
Full Fundamental Rules
24 and 25
6. Grant of leave of all kinds other
than special disability and study
leave to Group B Officers, C
and D staff.
Full Para 36 of Railway
Audit Manual.
(Branch Officers
can sanction EL
upto 30 days to
Section Officers
and other Group
27
C staff).
7. Advances/part final withdrawals,
under Rule 12/15 of GPF(CS)
Rules to Group B, C and D
staff.
Full Item No.1 & 2 of
5
th
Schedule
toGPF(CS) Rules
1960 and
Notification
No.13(2)/8Pen.
dated 20.5.83 of
Govt. of India,
Ministry of Home
Affairs,
Department of
Personnel and
Administrative
Reforms, New
Delhi.
8. Advance in lieu of leave salary to
Group B, C and D staff.
Full Rule 259 of
G.F.Rs.
9. Controlling Officer under
S.R.191 for purpose of Travelling
Allowance to Group B, C and
D staff.
Full Item 30- section
C of MSO(A)
Vol.II.
10. Countersigning of medical claims
of Gazetted staff.
Full P.O.O.No.62 dated
6.6.1980.
11. Power to sanction advances of
(a)Travelling Allowances on tour
and (b)advances of Pay and
Travelling Allowance on transfer
to permanent and temporary
Government servants.
Full GFRs 231 & 222.
12. Grant of advances for the
purchase of bicycle.
Full G.F.R.191(2)
13. Grant of Festival Advance to non-
gazetted staff drawing basic pay
of not exceeding Rs.8300/- per
month.
Full G.F.R. 236
14. Grant of Fan Advance to Group
D
Full G.F.R. 221 A
15. Repair and Purchase of spare
parts for office machines.
Rs.2000
p.a.
Item No.18 sub-
section-Section
A(xiv) of
MSO(A) Vol.II.
16. Convenyance Hire or other
conveyance charges to gazetted
Government servants.
Upto
Rs.50/-
in any
No.850-NGE.I/
122-67 dated
14.5.69, F1(4)-
28
one
month
EII(A)/76 dated
11.6.76 (Page 157)
(Page 58 of File
No.Au/A/IX/
23/Vol.I).
17. Local printing and binding in
emergent cases
Rs.2000
p.a.
Item No.18(IX) of
Section A of
MSO(A) Vol.II
and CAGs letter
No.3838-
NGE.I/84-78 dated
20.12.79 (Page 219
of Au/A/IX/23/
Vol.I)
18. Local purchase of
petty stationery stores
Heads of offices in J A
Grade Rs.4000 p.a.

Heads of Offices in
time scale Rs.1500 p.a.
Item 21(B) of
Schedule V of
Delegation of
Financial
Powers Rules.
19. Contingent
expenditure on items
other than those in
respect of which
specific limits/scales
have been prescribed
by Government.
Heads of offices in
time scale of IA&AS
upto Rs.2000 p.a.
(Recurring) upto
Rs.5000 p.a. (non-
recurring).
Other Heads of Offices
upto Rs.200 p.a.
(Recurring) upto
Rs.1000 in each case
(non-recurring).

Item No.14
Section A of
MSO(A) Vol.II
C&AGs letter
No.3229-
NGE.I/81-79
dated 30.10.79
(Page 210 of
File No.Au/
Admn/IX/
23/Vol.I)

29

Auditorial:

To waive
raising formal
objections
Subject to conditions given in Para
7.1.14 Manual of Standing Orders
(Audit)
(i) Upto Rs.15/- in the case of
irregular expenditure.
(ii) Upto Rs.25 in the case of
expenditure which though
otherwise justifiable in itself.
(a) is objectionable on the
ground that it is not covered
by requisite sanction, but
where there is no reason to
believe that such sanction
would not be forthcoming if
sought for.
(b) Where full proof of the
regularity of the expenditure
is not forthcoming although
there is no reason to doubt
that the disbursement has
been actually made.

(iii) Upto Rs.5/- in the case of under
charge in items of earnings.
(iv) Upto Rs.250/- in the case of
mistake in the apportionment of
earnings between Government
Railways (See Note under Para
183 of Railway Audit Manual).
(v) Upto Rs.5/- in the case of under
charge or over charge in
Government Traffic.

Para 7.1.14 of
Manual of
Standing
Orders (Audit)

30
Annexure II (Para 209(b))
The Secretary to the Principal Director of Audit is entrusted with the following
items of duty:
(1) Assisting the Principal Director of Audit, in connection with the correspondence
which is personally handled by the Principal Director of Audit by collection of
relevant data from various sections whenever ordered by the Principal Director of
Audit.
(2) Assisting the Principal Director of Audit in the examination of arrear reports
submitted by various branches and watch on clearance of major items of arrears.
(3) Investigation and working out details of important new proposals initiated by or
referred to the Principal Director of Audit and collection of information from various
sections required by the Comptroller and Auditor General of India etc. at short notice.
(4) Maintaining duplicate copies of all important sanctions received from Comptroller
and Auditor General of India required for the personal information of the Principal
Director of Audit.
(5) To bring to Principal Director of Audits special notice of control returns not being
submitted to him/her by various sections and reasons therefor and suggesting remedial
action and also pursuing them till they are finally put up.
(6) Detailed investigation of cases relating to any section as and when marked by the
(7) Examination of cases of complaints regarding delayed payment of settlement dues,
arrears, pay fixation, increment etc. as and when brought to the notice of the Principal
Director of Audit and reporting progress thereof to the Principal Director of Audit
periodically.
(8) Attending to official visitors and listening to their complaints/grievances
sympathetically and keeping a note of this, also to put them on record and send them
to the Deputy Director/Director concerned. He will keep a watch on such cases
through a diary. He will also bring to the notice of the Principal Director of Audit
such cases of complaints as remain undisposed off for a period of over one month.
(9) He will also be responsible to compile and send all returns to the Comptroller and
Auditor General of Indias office which relate to the complaints which have been so
far prescribed or may be prescribed in future.
(10) Review of working of particular section(s) of the office as and when marked by the
(11) He will also conduct surprise checks of sections getting reports on bottlenecks in their
working and suggesting remedial action.
(12) He will generally act as multipurpose officer on behalf of the Principal Director of
Audit as befits a Secretary.
(Authority: P.O.O. No.104 dated 8/1987)
31
F O R M A T - I
HANDING OVER REPORT OF BRANCH OFFICER
(To be prepared in quadruplicate in respect of each section separately)
*****
Handing over Report of Shri/Smt./Ms.______________________, Sr.Audit Officer/Audit Officer,
_______________ Section, Dated ________________
1. (a) Name of the Branch Officer : (b) Event for handing over:_________________
Handing over: ______________________
Taking over: ________________________
2. Name of the Group: _____________________________
3. Name of the Controlling/Coordinating Section: __________________________________
4. Brief Narration of the work attended by the section: ____________________________________
_____________________________________
______________________________________
5. Position of staff:
Section Officer/
Asstt. Audit Officer
Auditor/
Sr.Auditor
Clerk/Typist
i) Sanctioned strength
ii) Men in position
iii) Shortages, if any
iv) Action taken to fill up the
shortages

32
6. Comparative position of arrears (in terms of mandays):
Particulars At the time of taking over
charge on ___________
At the time of handing
over charge now
Increase(+) Decrease (-) Reasons for increase with action
taken and or suggestions for
over-taking the arrears.
Internal External Internal External Internal External
a) At Branch
Officers
Level:
i) Reviews
ii) Any other item

Total (a) ______________________
________________________
In the Section
(Items as per monthly/
quarterly Arrear Report
to be specified)
Total (b) ________________________
Grand Total (a) +(b) ___________________________
Note: Detailed position of outstandings under Suspense Heads/Broadsheets/Difference between ledger and Broadsheets may be appended.
7. Internal Test Audit/Principal Director of Inspection Reports Pending:
a) Year Total No. No.of paras Suggestions for Expeditious
of paras pending disposal disposal of o/s paras
b) Internal Test Audit Reports.
c) Principal Director of Inspection Reports.
33
8. Important letters/periodical adjustments/
cases pending disposal (together with
action/suggestion if any)
Year upto Year upto which Reasons for arrears and
which due sent/done action taken so far
9. (a) Position of consignment of old Record section:
(b) Position of physical verification of dead stock
(Specific mention may be made of excesses/shortages
noticed and action taken therefor).
10. Books/Pamphlets/Files etc. handed over:
Note: Specific mention may be made of MSO(Audit),
MSO(A) and Memorandum of Secret Instructions etc.
11. Valuables: (Cash, Service postage stamps, if in charge).
12. Furniture: (including keys and locks etc.)
13. Nominations in custody handed over.
14. Confidential papers/cases (including confidential note on appraisal
of work and dependability of staff) handed over.
34
15. Special Remarks:
a) A summing up of the state of work in section, non-closing
of Calendar of Returns, areas of weakness and other issues
which need personal attention, sanctions of long period of
currency cases of investigation by SAG, Field parties etc.

Handed over/date Taken over/date

Relieved Branch Officer Relieving Branch Officer

Remarks of Group Officer:

Remarks of Principal Director of Audit
35
F O R M A T - II
Handing Over Report of Section Officer/Asstt. Audit Officer
(To be prepared in triplicate)
Handing over Report of Shri/Smt./Ms._________________, Section Officer/Asstt. Audit Officer,_______ Section, Dated __________
1. (a) Name of the Section Officer/Asstt. Audit Officer: (b) Event for handing over:_________________
Handing over: ______________________
Taking over: ________________________
2. Name of the Group: _____________________________
3. Name of the Controlling/Coordinating Section: __________________________________
4. Brief Narration of the work allotted to the section: ____________________________________
5. Position of staff:
Auditor/ Sr.Auditor Clerk/Typist
i) Sanctioned strength
ii) Men in position
iii) Shortages, if any
iv) Action taken to fill up the shortages
6. Comparative position of arrears (in terms of mandays):
Particulars At the time of taking over
charge on ___________
At the time of handing
over charge now
Increase(+) Decrease (-) Reasons for increase with action
taken and or suggestions for
over-taking the arrears.
Internal External Internal External Internal External
a) At Branch Officers level:
i) Reviews ____________________
ii) Any other item ____________________
Total (a) ______________________
In the Section:
(Items as per monthly/quarterly Arrear Reportto be specified) ___________________________
Total (b) ________________________
Grand Total (a) +(b) ___________________________
36
Note: Detailed position of outstanding under Suspense Heads/Broadsheets/Difference between ledger and Broadsheets, Sealing down of
differences, non-receipt of utilization certificate etc. may be appended.
7. Internal Test Audit/Principal Director of Inspection Reports Pending:
Year Total No. No.of paras Suggestions for Expeditious
of paras pending disposal disposal of outstanding paras
a) Internal Test Audit Report
b) Principal Director of Inspection Reports
8. Important letters/periodical adjustments/
cases pending disposal (together with
action/suggestion if any)
Year upto Year upto which Reasons for arrears and
which due sent/done action taken so far
9. (a) Position of consignments of old records

(b) Position of physical verification of dead stock
(Specific mention may be made of excesses/shortages
noticed and action taken therefor).
10. Books/Pamphlets/Files etc. handed over(a list may be appended):
Note: Specific mention may be made of MSO(Audit),
MSO(A) and Memorandum of Secret Instructions etc.
11. Valuables:______________________
37
12. Keys/locks/furniture etc. (transfer of charge certificate in terms of
Para 6.3.4 of Manual of General department and office procedure)
13. Confidential papers/cases (including a confidential note to the
successor regarding quality of auditors under his charge).
14. Calendar of Returns, Attendance Register, Monthly and quarterly
Arrear Reports, Register of good and bad work, Register of Valuables,
duty lists etc.
15. Machines, cycles, typewriters, calculators, duplicating machines etc.
if in charge.
16. Any other item requiring special mention.
17. (Heavy pendency in particular areas, action taken for missing books/
files/keys/machines etc. sanctions of long period of currency, cases
of investigation by SAG and/or field parties etc.)
Encl: As mentioned above.
Handed over/date Taken over/date
Relieved S.O./A.Au.O. Relieving S.O./A.Au.O.
Submitted to Branch Officer
Remarks of Branch Officer
Remarks of Group Officer:

Ch.III - Page 1 of 40
38
CHAPTER - III
GENERAL OFFICE PROCEDURE
301. (a) Hours of work and holidays: Hours of work and holidays observed by the Railway
audit office will conform to those obtaining in the corresponding local Railway offices. The
working hours followed are from 9.15 A.M. to 5.45 P.M. with half an hour interval for lunch
from 1.15 to 1.45 P.M.
Divisional Audit Offices at outstations will submit an approved list of
Holidays and Restricted Holidays for the year pertaining to their divisions immediately on its
receipt from the Divisional Railway Manager concerned.
(C.S. No. 3 of August 2002 Authority: POO No. 149 of 04.04.2002)
The workshop Audit Offices at Lallaguda, Guntupalli and Tirupathi will
observe Office timings coterminous with those of their respective Railway Accounts
Offices.
In so far as holidays are concerned the Workshop Audit Offices will follow the
list of holidays as observed by their respective Accounts Offices.
(Paras 82 and 83 of Railway Audit Manual)
(b) Closure of Government Offices in the event of death of high dignitaries: The
intimation of the death of the President or Prime Minister through All India Radio and Door
Darshan should be treated as authentic and offices closed accordingly. If intimation of the
death is received after office hours, offices will be closed on the following day, if it is a
working day. If intimation is received during office hours late in the afternoon, offices will
be closed for the rest of the day; but if it is not possible to close the offices for more than 3
hours on the day, offices will be closed on the following day also on the instructions of the
Home Ministry.
(MHA O.M. No.3/2/97-Public dated 21.11.1997)
Attendance
Attendance Register Late Attendance Absence from Office
302. Attendance Register: Members of staff should be punctual in their attendance. On
arrival, they should initial against their names in the Attendance Register. The Section
Officers/Asstt. Audit Officers should close the Attendance Registers promptly at 9.25 A.M.
and submit them to Branch Officers concerned after marking a circle in red ink against the
names of those who had not come to office by that time. In the absence of Branch Officer,
they should submit the Attendance Register to the nominated link officer. Members of staff
attending office late should initial in the Attendance Register in the presence of Branch
Officer indicating the time of arrival. In outstations where no Branch Officer is
headquartered or when the Branch Officer is absent, the compliance of these instructions
should be ensured by Section Officers/Asstt. Audit Officers concerned. The Branch Officers
39
shall ensure that the Attendance Registers reach them from the respective sections in time for
the check as prescribed.
The Branch Officers and supervisory staff should also ensure that the
prescribed half-an-hour lunch break is scrupulously observed by one and all. Surprise check
of one or two sections daily may be conducted by the Deputy Director/Director to ensure that
the procedure of closing the Attendance Registers is being followed strictly.
(P.O.O. No.54 dated 22.10.1974)
Group D staff should attend office by 8.45 A.M. daily for opening the office,
dusting furniture, arranging drinking water etc. before the office starts functioning at 9.15
A.M. Similarly, at the close of the office hours, Group D staff should ensure that all the
lights and fans are put off, doors and windows are securely closed before they leave the
office. The key, duly sealed in a box, is to be deposited in the Administration section (for
sections located in Secunderabad area).
303. Late Attendance: Half a days casual leave will be debited for each late attendance.
Late Attendance not exceeding one hour due to unavoidable reasons may be condoned by the
Section Officers/Asstt. Audit Officers in respect of staff working under them and by Branch
Officers in respect of Section Officers/Asstt. Audit Officers working under them, upto two
occasions in a month. A monthly review of late attendance should be done for its
regularisation. Disciplinary action may be taken in cases of habitual late attendance.
If an official, who has no casual leave to his credit, comes late without
sufficient justification and the Administrative authority concerned is not prepared to condone
the late coming but does not at the same time propose to take disciplinary action, he may
inform the official concerned in writing that he will be treated as on unauthorised absence for
the day on which he has come late and leave it to the official himself either to face the
consequences of such unauthorised absence or to apply for Earned Leave or any other kind of
leave due and admissible for the entire day. The same may be sanctioned by the competent
authority.
(GI, DP&AR O.M. No.28034/3/82-Estt.(A) dated 5.3.82)
The case of a Government servant who leaves office early without permission
before the time for closing of office should also be treated like late attendance and half-a-
days casual leave should be debited to the Casual Leave account for each such early
departure from office.
(G.I., D.P.&A.R., O.M. NO.28034/10/75-Estt(A) dated 27.08.1975)
304. Absence from Office: Absence by members of staff from office without proper
permission or getting leave sanctioned will tantamount to unauthorised absence entailing
disciplinary action.
DAK
INWARD REGISTRATION DISPOSAL DISPATCH ARREAR REPORT
CIRCULATION
40
305. Inward Dak: Excepting secret, confidential and demi-official letters, all letters, on
receipt, are date stamped in the Routine section. The letters received from the Comptroller
and Auditor General of India, Railway Board, Government of India, State Government and
Sanctions of the General Manager and general telegrams are sorted out in one pad (A Dak)
and the others kept in another pad (B Dak). The dak pads are circulated to the Principal
Director of Audit and Director/Deputy Director and other specified Officers.
Secret, confidential and demi-official letters will be opened by the officers
concerned. However, in the absence of Principal Director of Audit, such letters addressed to
the Principal Director of Audit will be opened by the Director/ Deputy Director. These letters
are entered in the diary maintained by Private Secretary to Principal Director of
Audit/Stenographers and where necessary sent to the Asstt. Audit Officers/Section Officer of
the section concerned and their acknowledgement is obtained in the diary maintained by the
Private Secretary/Stenographers. Asstt. Audit Officer/Section Officer concerned should then
get them entered in a diary of confidential and secret letters to be maintained by each section.
Such letters duly entered in the confidential diary should be put up to the Branch Officer for
his information on the same day. Progress of disposal and the position of outstanding of such
letters should be put up to the Branch Officer every Monday as in the case of A dak letters.
While submitting the confidential inward diary periodically to the Principal Director of
Audit, Private Secretary should obtain the remarks of the Branch Officer concerned in respect
of outstanding letters. Letters on which Principal Director of Audit has raised queries should
also be dealt with in the above manner.
(P.O.O. No.56 dated 21.6.1976)
Orders passed/queries made by the Principal Director of Audit/
Director/Deputy Director in the inward letters are to be noted in a separate register by the
Private Secretary/Stenographers to watch the action taken by the sections concerned.
306. Registration of Inward letters: After circulation among the Officers, the dak pads are
returned to Routine section. The Routine Section, after verifying the correctness of the
number of letters received back with those shown in the circulation slip, will register all
letters in the A dak pad, individually in a Central Register in the form given in Annexure IV
to this Chapter. The total number of B dak letters received every day and their distribution
among the various sections will be recorded in another register (B dak Register) in the form
given in Annexure IV to this Chapter. Every section including those in the Branch Offices
should maintain separate A and B dak registers in the form given in Annexure IV to this
chapter.
Letters pertaining to respective sections will be sent to them under dak slips.
The Clerk/Typist attached to the sections should submit the letters to the Branch Officers
after verifying the letters with the Dak slip. Letters received directly in the sections from
other sections or offices should also be submitted to the Branch Officers along with the Head
Office Dak. After perusal by the Branch Officers, the letters should be registered in A and
B dak registers by the Clerk/Typist/Record Keeper.
The out-turn fixed in respect of diarising of letters (including registered
letters) is 310 letters per day per Clerk.
(Comptroller and Auditor General of Indias letter No.100-O&M/39-86 dated 30.1.1987)
41
307. Disposal of letters: On receipt of the Inward Register with letters, the Asstt. Audit
Officer/Section Officer will go through the letters and mark them to the Auditor/Sr.Auditor
concerned for disposal. The Auditor/Sr.Auditor will acknowledge the letters received by him
in the Inward Register. Asstt. Audit Officer/Section Officer should ensure that the staff
receive the letters promptly without allowing the letters to accumulate. Reference to the file
in which the letter is filed should be given against each entry in the Inward Register (A and
B Daks) with the dated initials of the Auditor/Sr.Auditor concerned.
The Auditor/Sr.Auditor entrusted with the disposal of letters will attach the
letter to the file concerned and submit the disposal in a note on a separate sheet. Office notes
should contain full references to previous notes, letters/orders. On the letter under disposal,
the page number of the letter to which it is a reply and also the page numbers of the letters
referred to in it should be indicated. In the case of letters received from higher authorities,
copies of letters (enclosed), which are not available should be obtained either locally or from
the offices from where the letters under disposal were received and linked up.
When cases are put up for disposal, all the relevant files should be page
numbered and referenced. References to correspondence in such files may be made in the
margin of the note.
While putting up drafts for approval, the following points should be observed:
i) The case or file number should invariably be given at the top.
ii) The subject (which should ordinarily be the case title) should be given as the heading
in the draft.
iii) If there has been previous correspondence on the subject the draft should, if
necessary, commence with a reference thereto.
iv) Nothing should be written in the margin and sufficient space should be left between
the lines to admit corrections being made in the draft. Both sides of the paper should
be used and the paragraphs numbered. Only recognised abbreviations should be used.
v) Enclosures accompanying the letter should be indicated in a notation on the left hand
side below the body of the letters whenever there are too many enclosures.
vi) Drafts should be written on separate sheets and not in continuation of notes.
vii) The person comparing the fair copies should initial in the manuscript copy with the
remarks Fair copy compared. Fair copies of all correspondence addressed to the
Comptroller and Auditor General should be compared and initialed by the Asstt.
Audit Officer/Section Officer. When copies of letters are sent along with these, they
should be certified as true copies by the Asstt. Audit Officer/Section Officer under
his/her signature.
TYPING WORK
308. Typing Work: When papers are sent for typing, the number of copies required should
be indicated. The typing section should type out promptly and neatly so that the fair copy can
be issued the same day. Abbreviations should be avoided in the fair copy. The typist should
type his initials at the left hand side below the letters or statements. Items of work which are
42
marked to typing section as Urgent Express Immediate Out-today etc. should be typed
immediately on receipt. Draft telex messages sent to typing section should be dealt with at
once. All work should as far as possible, be dealt with on the day of receipt and the files
returned to the section concerned for comparison and issue of the fair copy of the letter on the
same day.
Each typist should type 860 lines (7500) words per day.
(CAGs letter No.100-O&M/39-86 dated 30.1.1987)
Each typist should maintain a diary to record the number of lines typed every
day. He/she should submit the diary to the Asstt. Audit Officer/Section Officer in charge on
every Monday and to the Branch Officer on the first Monday of every month.
A Clerk/Typist is attached to every Divisional Audit Office/Branch Office. At
Headquarters, the typing work is distributed among the Clerk/Typists by the Audit
Officer/Sr.Audit Officer(Administration) from time to time according to the availability of
men and the work load.
STENOGRAPHERS
309. Stenographers: In addition to attending to officers to whom they are attached, Private
Secretary to Principal Director of Audit/Stenographers deal with confidential files and
documents with Principal Director of Audit/Director/Deputy Director etc. and maintain
inward diaries of confidential and demi-official letters received by these officers and mark
their disposal.
Confidential and demi-official letters, including all enclosures thereto, are
typed by the Stenographers concerned. The typing work of important letters addressed to
D.A.I. and other letters marked by Principal Director of Audit/Director/Deputy Director and
Branch Officers, shall also be typed by the Private Secretary to Principal Director of
Audit/Stenographers concerned. They may also be given other typing work as and when
necessary.
Stenographers shall remain in office till the officers to whom they are attached
leave the office.
FILE SUBMISSION
310. Submission of files to Principal Director of Audit/Directors/ Deputy Directors: The
sections which originate the files should keep track of these files through their File
Movement Registers and the Despatch Register. In case the files or the registers are of
Confidential/important nature, the sections may send them through the transit register which
may be got acknowledged by the personal staff. The return of the files by personal staff
should also be done with equal care and by obtaining the acknowledgement of the concerned
members.
(Authority: AU/BHQ/II/1/186 dt.13.2.1992).
The Private Secretary to Principal Director of Audit will ensure that the files
disposed of by the Principal Director of Audit are sent to the Director/Deputy Director and
the Stenos to the Director/Deputy Director will ensure that the files received from the
43
Principal Director of Audit and also those disposed of by the Director/Deputy Director are
sent to Branch Officer concerned. The Branch Officer concerned will initial the documents
received back from Principal Director of Audit/Director/Deputy Director in token of his
having seen it and the same should be sent back to the Asstt. Audit Officer/Section Officer
and not directly to the dealing Auditor/Sr.Auditor. In case the files etc. on return have not
been seen by the Asstt. Audit Officer/Section Officer, the Auditor/Sr.Auditor concerned
should bring the same to the notice of the Section Officer/Asstt. Audit Officer/Branch Officer
promptly.
Files, Notes etc. received from out-station offices for submission to either
Principal Director of Audit/Director/Deputy Director should be handed over by the receipt
clerk to the respective stenos. The Private Secretary/Stenographer should submit the papers
to the Principal Director of Audit/Director/Deputy Director for approval and later on arrange
to send the same to the despatch clerk for their return duly obtaining the acknowledgement of
the despatch clerk.
(P.O.O. No.58 dated 4.9.1976).
COMMUNICATION
311. Signing of Letters: Communications of the following nature should not be issued
except with the previous approval of the Principal Director of Audit.
(i) Letters implying dissatisfaction or censure;
(ii) Letters to Government (State or Union);
(a) having a bearing on important questions of audit and accounting,
(b) challenging decisions or orders,
(c) questioning the validity of any sanctions otherwise than for merely technical defects,
and
(d) containing proposals for writing off or waiving off recovery of over payments;
(iii) Letters to the Comptroller and Auditor General of India other than on routine matters;
(iv) Letters to General Manager of the Railway or outside officers except on purely
routine matters;
(v) Letters to the Financial Adviser and Chief Accounts Officer of the Railway or any
other office.
Such communications will ordinarily be signed by the Principal Director of
Audit himself. In his absence from Headquarters, the letters referred to at items (i), (ii) and
(v) of the preceding paragraph may be signed by the Director/Deputy Director but they
should bear sufficient indication that they are being issued under direction of the Principal
Director of Audit. In regard, however, to letters to authorities referred to at item (iv) above,
an Audit Officer/Sr.Audit Officer may sign communications for Principal Director of
Audit, which ordinarily means that the Principal Director of Audit himself has passed the
draft or has issued unmistakably explicit orders on the subject of the letters.
44
As regards item (iii), the letters shall be sent over the signature of the Principal
Director of Audit except in special circumstances in which the Principal Director of Audit is
not available for signing the letters. In such cases letters should be signed by
Director/Deputy Director as for Principal Director of Audit clearly indicating the fact of the
Principal Director of Audit being on tour or absent otherwise and also stating that the case
will be shown to him on his return to Headquarters.
(CAGs letter No.1969-GE.II/87.86 dated 21.7.1986 and No.30-
Audit/O&M/213-98 dated 2.2.1999)
All letters/returns and statements forwarded by the Divisional or Branch
Offices to the Headquarters Office will be signed by the Divisional Audit Officer/Branch
Officer concerned. However, routine returns may be signed by the Asstt. Audit Officers.
When the Divisional Audit Officer is out of Headquarters on tour or on leave, the letters,
returns etc. may be issued under the signature of the Asstt. Audit Officer/Section Officer if
the drafts were approved by the Branch Officer.
All Part I Audit Notes/Inspection Reports and Special Letters should be issued
with the prior approval of the Principal Director of Audit and a copy sent to COR section.
Special Letters should be closed only with the prior approval of the Principal Director of
Audit.
Asstt. Audit Officers/Section Officers are authorised to file nil reports and
interim replies under their own signature.
(Para 2.17.4. - Manual of Standing Orders(Admn.) Vol.I)
312. Despatch of letters: After signature by the Officer concerned, the letters to be
despatched will be sent by the sections concerned to the Routine section. On receipt, these
should be examined by the Routine section to see if they are complete with all the necessary
enclosures. These will then be registered in the Despatch Register. The despatch serial
number should be suffixed to the letter number and the date of despatch recorded on the
office and fair copies. The office copy bearing the despatch stamp and the dated initials of
the despatch clerk will be sent back to the section immediately thereafter. The letters
intended for the same office should be despatched in one cover. Care should be taken in
addressing the letter and noting the references outside the covers.
In the case of letters not typed on printed office letter heads, the office stamp
should be affixed.
The letters despatched will be numbered serially from April to March. The
citation of the subject in the Despatch Register must be brief but fully informative. A
separate Despatch Register should be maintained for demi-official letters.
Secret and Confidential letters despatched will also be registered in a separate
register kept for the purpose. These letters will be placed in a cover, sealed with the personal
seal of the officer concerned, marked confidential or Secret and handed over by the
Stenographer to the Despatch Clerk. The Despatch Clerk should place the sealed cover in
another cover which should be sealed with office seal. The outer cover should not be marked
Secret or Confidential. The office copies of the letters despatched bearing despatch stamp
45
and the dated initials of the Stenographer will be returned to the section concerned. The
following points should be borne in mind by the Despatch Clerk.
1) D.O. letters to local officers should be delivered to the Stenographers attached to the
officers.
2) Bulky Parcels and insured articles should be sent invariably in cloth lined cover.
(CAGs letter No.2432-NGE.III/9-67 dated 20.11.1967)
3) Service Registers when sent by post should always be insured.
Letters despatched to other Railway Offices or other sections situated at
Secunderabad need not be routed through the Routine section. These should be directly
sent to the offices concerned and acknowledgements obtained in the Sections delivery book.
Papers to be despatched to the Divisional/Branch Offices will be listed by the
Routine section in a transit memo, prepared in triplicate. Two copies of the memo will be
sent to the Divisional Branch Offices with the papers and one of these will be received in due
course with the acknowledgement. The receipt of these should be watched by the Routine
section clerk and the receipted copies will be attached to the original memo. The original and
acknowledged copies of the transit memo should be preserved carefully. Letters to be sent to
the Railway Offices outside the Headquarters and to the Divisional/Branch Offices will be
sent through the Railway Free Service as far as possible.
The same procedure as mentioned above will be followed in the
Divisional/Branch Audit Offices in forwarding correspondence/files etc. to the Head office or
other Divisions/Branches.
The out-turn in respect of despatch of letters fixed by the Comptroller and
Auditor General of India is 310 letters per day per clerk.
(CAGs letter No.100-O&M/39-86 dated 30.1.1987)
STAMP ACCOUNT
313. Stamp Account: Wherever possible, letters will be sent by Railway Dak. In other
cases, service postage stamps may be used.
Particulars of letters sent by post and value of postage stamps used should be
noted in the Register of Stamp Account. The stamp account should be checked daily by the
despatch clerk and the stamps on hand verified by the Asstt. Audit Officer in charge on the
last working day of the month. The register should be put up to the Branch Officer on the
first day of every month.
In the case of letters sent by registered post, the postal receipt should be pasted
in the Register of Stamp Account.
Whenever the stamp imprest is to be recouped, a cheque should be obtained
from the Financial Adviser and Chief Accounts Officer through a pay order in favour of the
Post Master and sent to the Post Office along with the indent for stamps in form T.R.35
46
indicating the denominations. Service stamps required by the Divisional and Branch Offices
may be obtained from Headquarters office.
The value of the stamps on receipt will be entered in the stamp account.
MAINTENANCE OF FILE / RECORD
REGISTER OF FILES CUSTODY WEEDING AND DESTRUCTION
314. Weekly Arrear Report of letters: One week for A Dak and 15 days for B dak are
allowed for clearance of letters. An arrear report in the form given in Annexure V to this
Chapter should be submitted to the Branch Officer every Monday.
Confidential Inward Diary and D.O. Diary maintained by the Stenographers,
should be closed every Friday taking into account the communications received upto the
previous Friday and put up to the Principal Director of Audit/Director/Deputy Director on the
following Monday, after ascertaining the disposal of confidential/D.O. letters.
315. Supply of copies of orders and circulars to various sections: Copies of orders and
circulars of the Ministries of Government of India, Railway Board, Comptroller and Auditor
General of India, General Manager etc. on subjects pertaining to more than one section will
be initially received by the Headquarters Sections concerned. Copies of these orders will be
furnished by these sections to the other sections.
Letters dealing with special investigations will, however, be initially received
by the SAG section as the Principal Director of Audit may direct, and further action will be
coordinated by the section.
316. Maintenance of Files: Each section should maintain a manuscript Register of Files
containing columns to indicate
1. Date of opening
2. Number of the file
3. Subject
4. Date of closure
5. Due date of destruction
The register of files should be kept as a permanent record.
No new file should be opened without the approval of the Branch Officer.
The files should be opened in such a way that orders and important decisions on a subject are
filed separately from routine correspondence on the subject. Correspondence dealing with
clarifications or amendments should, however, be dealt with in the order file itself. Only one
copy of the letter should be kept in the files, spare copies being preserved separately. The
subject matter dealt with generally by each section should be divided into a limited number of
major heads on the pattern indicated in Annexure VI to this Chapter. The major head should
be indicated by Roman numbers. Under each major head, there will be a number of minor
heads which will be generally numbered in Arabic numericals. The files relating to orders
should bear the letter O after the number indicating minor head. For each minor head, a
separate file is opened noting the number in the Register of Files, under the respective major
heads. The first and second segments of the file number should indicate the auditing unit
47
such as AuX/HQ for Expenditure Headquarters Section, AuE/SC for Establishment section of
Secunderabad Division. AuC/SC for Construction Audit Section, Secunderabad, AuW/LGD
for Workshop Audit Section, Lallaguda, etc.
In all important files, notes and correspondence should be filed separately. No
noting should be made on the PUC. In such files, in addition to numbering the pages, the
correspondence (viz. receipts and issues) should also be serially numbered, this number being
quoted on the note side, before the number and date of the letter while putting up disposal.
The file should not be allowed to become too bulky, and a second volume of the file should
be opened when a file contains about 200 folios. When a second volume of a file is opened,
the first and second volumes should be distinctly marked as Volume I and Volume II. In
respect of all orders files, an index sheet should be prepared in the following proforma:
S.No. Page No. Lr.No. & Date Gist of the orders

When a file is closed, clear remarks should be made on the cover of the file to
indicate the number of years for which the file should be preserved, in accordance with the
period of preservation indicated in Appendix I to Railway Audit Manual and further orders
issued on the subject. Necessary entry in the relevant column of the Register of Files should
also be made.
The Register of Files should be submitted to the Branch Officer every month
indicating the numbers of files opened and closed during the previous month.
317. Custody of Confidential and Secret Files: Confidential and Secret correspondence,
documents etc. should be placed in files marked as such, and kept in the personal custody of
Section Officer/Asstt. Audit Officer. These files should be given separate numbers in the
Register of Files and a list thereof maintained separately by Section Officer/Asstt. Audit
Officer of the section. When the Section Officer/Asstt. Audit Officer is transferred from a
Section, these files and the list should be handed over to the successor and the fact mentioned
in the handing over note. Confidential and secret papers relating to Administration Section,
should be kept in a separate locker.
318. Maintenance of Records: Files should be neatly arranged in almirahs or racks
according to major and minor heads and current files being segregated from others not
frequently required.
Section Officers/Asstt. Audit Officers should keep a close supervision over the
work of Auditors/Sr.Auditors and general up-keep of records.
319. Weeding and destruction of records: A review of the records for the purpose of
destruction should be conducted by all sections quarterly in March, J une, September and
December. The old records which are due for destruction should be entered in a register and
submitted every quarter as mentioned above to Deputy Director/Director for approval. After
approval, all confidential papers should be destroyed under the supervision of the Branch
Officer and the rest sold as waste paper to the highest bidder duly obtaining the required
quotations from the local waste paper merchants. The records need not be sent to
Administration section.
48
A list of items not included in Appendix I to Railway Audit Manual for which
period of preservation has been fixed by the Principal Director of Audit is given in Annexure
VII to this Chapter. Orders of the Principal Director of Audit should be obtained for
destruction of such records as are not included either in Appendix I to Railway Audit Manual
or in Annexure VII.
The period of preservation of a closed file or register should be reckoned from
the end of the financial year in which the file or register is closed. For example, if a file is
closed in August 2007, and it is required to be preserved for three years, the period of 3 years
should be reckoned from 1
st
April, 2008.
(P.O.O. No.90 dated 2.7.1986)
REGISTERS
GENERAL INSTRUCTIONS SECTIONAL REGISTER CALENDAR OF
RETURNS PENDING CASES REGISTER REGISTER OF OUTWARD
CORRESPONDENCE DEAD STOCK REGISTER OO REGISTER
REGISTER OF LIST OF TABLES / KEYS
320. Maintenance of Registers General Instructions applicable to all Registers: All
registers should be maintained in the prescribed form, code words assigned to the registers
such as C.R. for Calendar of Returns, S.R. for Sectional Register etc. should be indicated
above the title of the register. Name of the Section, year, due dates of submission to Branch
Officer/Deputy Director/Director and period of preservation also should be indicated on the
cover of the registers as in the specimen below:
C.R.
OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT
SOUTH CENTRAL RAILWAY
SECUNDERABAD

Administration Section

Calendar of Returns 2007-2008

To: B.O. every week

To: Deputy Director/Director once in a month
To be preserved for 2 years (upto 31.03.2010)
Reference to the authority such as para number of Railway Audit Manual,
P.O.O. etc. requiring the maintenance of the register should be quoted on the first page of the
register. The registers should be page numbered and the first and third pages set apart for
index and record of submission.
Whenever new registers are opened, the Section Officer/Asstt. Audit Officer
should record a certificate on the first page of the Register to the effect that all items have
been correctly carried forward from the old register.
49
321. Sectional Register: Each Section should maintain a Sectional Register indicating the
following:
(i) Sanctioned strength;
(ii) Nominal Roll in the prescribed proforma including Residential address;
(iii) Duties of the section as a whole;
(iv) Duties of each individual member;
(v) Summary of important orders affecting the work of the section;
(vi) Residential address of the officials
Duty list of Auditors/Sr.Auditors and Section Officers/Asstt. Audit Officers
should be got approved by the Deputy Director/Director. Subsequent changes, if any, should
have the prior approval of Deputy Director/Director. Signatures of the staff posted to the
section should be obtained in the register in token of having noted the duty list.
As and when required, additional items of work may be allotted to staff by
Branch Officers by written orders which should be filed separately and preserved
permanently like Sectional Register.
The Sectional Register should be maintained properly and in such a way that
fixing of staff responsibility in cases of failure will be rendered easy. It should be preserved
permanently. As and when changes occur in the section due to transfer etc. an entry may be
made in the register and the register submitted to the Branch Officer by 15
th
of each month.
322. Calendar of Returns: Each Section of the office should maintain a Calendar of Returns
for each financial year showing the due and actual dates of despatch of returns or submission
of reports and registers to the Branch Officer, Principal Director of Audit, Comptroller and
Auditor General of India etc.
The returns/reports etc. should be classified as weekly, fortnightly, monthly,
quarterly, half-yearly, yearly and occasional, and entered in separate sections of the Register.
Under each section, the returns should be entered in chronological order. Particulars such as
due date, to whom due, authority for the submission of the return should be indicated in the
register. Wherever the date on which a return should reach Comptroller and Auditor General
of India/Principal Director of Audit is specified, this should be indicated in the Calendar of
Returns. Sections which receive returns from other sections/offices, should maintain an
Inward Calendar of Returns to watch the receipt of returns. This may be maintained in the
Calendar of Returns of the Section by allotting separate pages.
Section Officers/Asstt. Audit Officers should personally make entries of dates
in the Calendar of Returns. Branch Officers should test check the dates at the time of every
submission of the Calendar of Returns in such a manner that all items are covered in a year.
Branch Officer should indicate the items test checked in a separate folio of the register.
Sections at Headquarters should put up their Calendar of Returns to Deputy
Director/Director once a month. Units located at outstations may put up the Calendar of
Returns to Deputy Director/Director/Principal Director of Audit during their local visits.
50
The Calendar of Returns in respect of one or two units at Headquarters
selected by the Principal Director of Audit monthly should be test checked by the Internal
Audit Section and results of test check submitted to Principal Director of Audit for perusal.
(P.O.O. No.97 dated 16.2.1987)
Particulars of delayed/pending returns should be indicated in a separate section
of the register in the following proforma and the reasons for delay explained, while putting up
the register to the Branch Officer.
Part A Delayed Returns
S.No. Category
of return &
Page
Number
Name of the
section and to
whom due
Due
date
Reasons
for delay
Date of actual
submission/
despatch

Part B Pending Returns
S.No. Category of
return and
Page Number
Name of section
and to whom due
Due
date
Reasons for delay and
action taken to speed
up matters.

323. Pending Cases Register: Cases on which action is required to be taken at a later date as
well as other cases which, owing to any reason, could not be disposed off finally should be
noted in the pending cases Register. Only one entry should be made on a folio of the register
so that sufficient space may be available for recording the progress of the case from time to
time. The register should contain brief history of the case, reasons for keeping it pending, the
date when further action is required to be taken and the position of the case from time to time.
When a case is finally disposed off, this fact should be indicated in the register and attested
by the Section Officer/Asstt. Audit Officer. The fly-leaf for submission of the register to the
Branch Officer should indicate the opening balance, additions, and deletions during the
month, and the closing balance, with the serial numbers of the outstanding cases. The
register should be submitted to the Section Officer/Asstt. Audit Officer every week and to the
Branch Officer on or before the 5
th
of every month.
The proforma of the register is given in Annexure VIII to this Chapter.
324. Register of Outward Correspondence: All letters for which replies are due should be
entered in the Register of Outward Correspondence. The register should be put up to the
Branch Officer on the last working day of the month indicating the Opening Balance, number
of letters issued during the month, number closed during the month and the balance.
For the letters not replied to, upto first two, monthly reminders shall be issued
by the Asstt. Audit Officer and the first three reminders shall be issued at Branch Officers
level as D.O. reminders at intervals of 15 days. Important cases where no replies are
forthcoming inspite of the D.O. reminders should be put up to Director/Deputy
Director/Principal Director of Audit, to be taken up at higher level.
51
325. Register of Reminders: A reminder register indicating the action taken on all the
reminders received should be maintained in the following proforma and submitted to Branch
Officer on every Monday.
S.No. Reminder No.
and date
From
whom
received
Subject Connected
file No.
Action
taken

326. Register of Audit Notes and Special Letters: Each auditing section should maintain
two registers to deal with:
(i) Draft Audit Notes and Part II Audit Notes
(ii) Part I Audit Notes and Special Letters
The registers should be maintained in the form given in Annexure IX to this
Chapter. These registers should be submitted to the Branch Officer on or before 5
th
of every
month.
CODES / MANUALS
SUPPLY CORECTION SLIPS / POOS GAZETTE
327. (a). Codes, Manuals and other publications: Copies of the various codes issued by the
Railway Board are supplied free for official use by the Manager of Publications, New Delhi.
Subject to the limitations in the Schedule of Powers and other rules or orders
of competent authority, Principal Director of Audit is empowered to purchase from the
allotments for contingencies books and periodicals required for the Head Office and Branch
Offices.
All Codes, Manuals etc. received in the office are distributed to various
sections.
(b). Supply of Codes/Manuals at concessional rates to Examination candidates: Staff
who are preparing for the Departmental Examinations are eligible to obtain the books of
general use in the office at concessional rates only once.
(Para 2.12 of Manual of Standing Orders(Admn.) Vol.I)
328. Correction Slips: (a) For the efficient functioning of audit, it is essential that all Codes
and Manuals and other books of reference are kept corrected upto-date. For this purpose, the
Headquarters sections have been made responsible for the maintenance of master copies of
Code Books, Manuals etc. as indicated in Annexure X to this Chapter. Correction slips will
be initially marked in the dak to the Headquarters section concerned which will supply copies
to other sections.
The Branch Officers should also personally ensure that the above instructions
are invariably complied with by the sections in their charge and furnish a certificate to that
effect to COR section quarterly (on 15
th
of April, J uly, October and J anuary). The
52
Headquarters Sections concerned should also furnish the List of Correction Slips (both
advance and printed) received during each quarter to all Divisions/Sections on the same dates
as specified above under advice to COR Section. The distribution of the correction slips as
and when received and the quarterly list of correction slips may be confined to only such
publications which are commonly required for reference by the auditing units.
In order to update the Manual, the nominated sections should review the
existing provisions with reference to further instructions issued through circulars on the
subject, changes in accounting procedure and suggest issue of Correction Slips wherever
necessitated through COR Section.
For this purpose, the earmarked sections should send quarterly a report to
COR Section indicating the paras requiring correction and the correction slips proposed. The
report should reach COR Section by 15
th
of April, J uly, October and J anuary every year.
(P.O.O. No.118 dated 22.2.1991)
The sections indicated in Annexure XI to this Chapter should initiate action
for the issue of correction slips through COR section to the Office Manual as and when
necessary.
(P.O.O.No.45 dated 8.12.1972)
(b) P.O.Os. issued by Financial Adviser and Chief Accounts Officer: The scrutiny and
distribution of P.O.Os. issued by the Financial Adviser and Chief Accounts Officer to all
sections/divisions devolve upon the Headquarters Auditing sections concerned.
OFFICE LIBRARY
329. Office Library: Each Divisional Audit Office, Branch Office and Sections at
Headquarters will have an office library. Principal Director of Audit and Directors/Deputy
Directors have separate libraries. The library of the Administration Section and Principal
Director of Audits and Directors/Deputy Directors libraries will be maintained by a clerk
nominated for the purpose. Libraries in the Divisional/Branch Offices will be maintained by
the Clerk/Typist attached to those offices.
The clerk entrusted with the maintenance of the library should maintain a
register indicating particulars of books or publications in the library with details such as year
of publication, date of receipt etc. A separate register should be maintained for noting down
issue of books to the staff and their return. The office library will contain all the codes,
manuals etc. The libraries of the Principal Director of Audit/Director/Deputy Director will
consist of only such of the Railway and Civil Codes and Manuals which are required for day-
to-day reference. The books in stock on 31
st
March every year in the office library and the
Principal Director of Audit and Director/Deputy Director libraries should be verified by a
Section Officer to be nominated by the Deputy Director/Director in charge of Administration.
The result of such verification should be submitted to Director/Deputy Director
(Administration). Certificates of verification of books in the libraries in Branch/Divisional
Offices should also be submitted to the Director/Deputy Director (Administration). When
codes, manuals etc. are found missing during such verification, immediate action should be
taken to fix the responsibility for the loss, and orders of the Principal Director of Audit
obtained for recovery/write off.
(Paras 2.15.1 to 2.15.2 of Manual of Standing Orders(Admn.) Vol.I)
53
330. Gazettes: Routine section will keep the gazettes filed carefully, section-wise in serial
order, after they are seen by the Gazetted Officers. Other sections to whom the Railway
Gazettes are supplied should file them carefully, section-wise in serial order, after taking
necessary action on matters with which each section is concerned.
OFFICE MAINTENANCE
FURNITURE TELEPHONE NEWSPAPERS & PERIODICALS
UPKEEP OF TYPEWRITERS SECURITY CLOSING OF RARC
331. Furniture: Furniture required for general use in the office such as almirah, racks etc.
may be provided according to the requirements of each office. Supply of furniture for the use
of the individual staff or officers is governed by the scales laid down by the Comptroller and
Auditor General of India as indicated in Annexure XII to this Chapter.
Furniture required for the office may be purchased locally, subject to
availability of funds. In regard to purchase of steel almirahs, safes, chairs, tables etc. rate
contracts entered into by the D.G.S.&.D. with the manufacturers of repute should be taken
advantage of.
332. Dead Stock Register: Section Officers/Asstt. Audit Officers are responsible for the
maintenance of the furniture available in their sections. The list of dead stock items handed
over by Administration Section may be displayed and kept in each section for easy
verification. If, at any time, any of the dead stock items in one section is transferred to
another section, it should be shown as issue in the remarks column of the list and intimated
to Administration section for necessary adjustments in the Master Dead Stock Register as
well as in the Guard File maintained in Administration Section. Similarly, the receiving
section should make necessary entry in the list as receipt.
The furniture available in each section should be entered in the respective
Sectional Registers.
An annual certificate of verification of dead stock items available in each
section, should be sent to Administration section by the end of December, every year through
the respective Branch Officers, after recording necessary certificate of test check.
333. Telephones: Calls on the P&T Telephone should be kept to the minimum, and the
Railway Telephone should be used wherever available. Private calls should not be made on
the P&T Telephones except when urgently required. Trunk calls on private account from the
office telephone should be made only in exceptional cases with the prior permission of the
Audit Officer/Sr.Audit Officer (Administration)/Branch Officer. A record of such private
calls should be made in the Register of Trunk Calls and Phonograms maintained in the
Administration Section. Charges for the private trunk-calls should be deposited by the staff
concerned as soon as the Telephone bill is received. Sr.Audit Officers/Audit Officers, Asstt.
Audit Officer (Administration) and Private Secretary to Principal Director of Audit and
Personal Assistants to Director/Deputy Director will be responsible to see that no
unauthorised use of the P&T Telephone is made.
54
The Administration Section will send once in a year i.e. as on 1
st
J anuary, a
report to the Comptroller and Auditor General of India regarding distribution of Gazetted
posts and telephone list of Group A Officers in the prescribed proforma.
(CAGs letter No.4633-GE.I/79-86 dated 9.9.1986)
Similarly, every half-year on 15
th
J anuary and 15
th
J uly, information regarding
telephone numbers of officers upto the level of Section Officers in the prescribed proforma
should also be furnished to Comptroller and Auditor General of India.
(CAGs letter No.661-RAI/17-50/83 dated 27.12.1983)
The Stenographers should keep the telephone directories corrected upto-date.
334.(a). Newspapers and Periodicals: Newspapers and periodicals shall be received by the
Library Clerk who after noting their receipt in the register maintained for the purpose, shall
stamp them and hand over to the Private Secretary to Principal Director of Audit. After the
periodicals have been seen by the Principal Director of Audit and Director/Deputy Director,
they will be sent to Secretariat for scrutiny and cutting out important and interesting matters
for an examination. Thereafter, the papers will be sent to Administration Section for
disposal.
(P.O.O. No.71 dated 13.11.1984)
(b) Newspapers clippings appearing in the local newspapers (English and
vernacular) relating to coverage of Audit Reports or which may be of importance from an
Audit point of view, should be sent in the prescribed format as and when they appear, by
Secretariat section to the Comptroller and Auditor General of India.
(CAGs D.O. Letter No.F.66/O&M/87 dated 7/8.7.1987)
335. Upkeep of Typewriters: Typewriters should be allotted to the Typists/Stenographers by
name who will be personally responsible for proper handling including periodical cleaning
and maintenance of machines. The machines should always be kept covered and locked
when not in use. A Typewriter card giving complete history of each typewriter should be
maintained upto-date by the person to whom the machine is allotted. The Administration
Section will maintain a register containing full particulars of all machines including those in
the Branch Offices. In this register, particulars of machines together with charges incurred
from time to time on account of repairs and spare parts should be recorded. These entries
should be attested by the Audit Officer/Sr.Audit Officer (Administration) at the time of
passing the bills for payment. Section Officers/Asstt. Audit Officers should ensure that
instructions regarding up-keep and maintenance of typewriters and writing up of typewriter
cards are followed in the respective sections.
336. Office Orders and Office Order Register: (i) Staff Office Order: Appointments,
transfers, promotions, leave and other personnel matters of members of staff are notified
through Staff Office Orders. These S.O.Os. should be entered in the S.O.O. Register
maintained in the Administration Section and should be serially numbered. A separate
register should be maintained for Office Orders issued in connection with appointments,
transfers etc. of Gazetted Officers.
55
(ii) Procedure Office Order: Orders dealing with changes in procedure, interpretation and
modification of rules etc. received from the Comptroller and Auditor General or approved by
the Principal Director of Audit for implementation, are notified through P.O.Os. These
P.O.Os. affecting audit procedure and P.O.Os. on other matters will be entered in the P.O.O.
Register maintained in Co-ordination Section and serially numbered.
P.O.Os. emanating from other sections should also be routed through Co-
ordination Section which will arrange to obtain the approval of the Principal Director of
Audit and assign the serial number with reference to the P.O.O. Register.
If a P.O.O. warrants a correction to the Office Manual, the COR section
should simultaneously draft the correction slip and obtain the approval of the Principal
Director of Audit. The correction slips should be serially entered in the Register of
Correction Slips maintained.
Orders or decisions of a transitory nature like posting of Group D to sections,
temporary re-distribution of work among Clerk/Typists etc. need not be notified through
S.O.Os. or P.O.Os. and should be issued through Office Orders or Circulars, as the case may
be.
337. Departmental Security Instructions: Detailed instructions contained in Ministry of
Home Affairs, Office Memorandum No.21/1/56 Poll.1 of 6.5.1957 should be borne in mind
by the members of staff who are required to deal with classified documents.
(File Au/A/Con/30).
338. Security arrangements of the Office: The following procedure relating to security
arrangements of the office has been laid down so as to conform to the directives issued by the
Ministry of Home Affairs (Government of India) and the Comptroller and Auditor General of
India.
The Clerk nominated for the supervision of the closing of the main office
building should ensure that the office is locked every day at 17.45 hours. The keys should be
put in a small box and pasted with a slip with the dated signature of the Clerk and the sealed
box left with the Chowkidar. Every day one hour before opening the office the Clerk
nominated for the purpose, should verify the condition of the sealed box containing the keys
as also the locks of the doors of the office and thereafter arrange to open the office. The
Clerk should enter the time of opening and closing of the office in a register maintained for
the purpose.
The procedure outlined above should be followed by the sections situated in
the Rail Nilayam, Traffic Accounts Building, Divisional Audit Office, Construction Audit
Office and Workshop and Stores Audit Office. After the offices are closed for the day, the
Clerk concerned should arrange to hand over the sealed box containing the keys of the
respective office to the Chowkidar of the Main Office building and sign in the register.
Similarly, the Clerk concerned should verify the condition of the sealed box and sign in the
register in token of it, before opening the sealed box in the morning brought from the main
office.
Whenever the office is required to be opened during Holidays or after it is
sealed for the day, prior permission of Deputy Driector/Director should be obtained and
56
Audit Officer/Sr.Audit Officer (Administration) informed accordingly who will issue
permits. The permits issued must be handed over to the Chowkidar on duty invariably by the
staff authorised to open the office. The Chowkidar should hand over the permits to the Clerk
of the Routine section who should submit them to the Audit Officer/Sr.Audit Officer
(Administration) on the following day. The staff who are permitted to open the office should
also follow the procedure for opening and closing of office mentioned above.
(Au/A/Confdl./30 dated 10.5.1983)
339. Closing of the Audit Recreation Club: The Audit Recreation Club should cease its
activities for the day by 20-00 hours sharp. The club room should be locked and the key
placed in a box, sealed and signed by the last member present in the club. The sealed box
should be handed over to the Chowkidar of the office and in token of it, the member should
sign in the register kept for the purpose indicating the time of closure. Similarly, when the
club is to be opened, the member should obtain the sealed box containing the key of the club
after signing in the register maintained for the purpose.
(CAGs letter No.1229-NGE.I/119-68 dated 15.5.1968)
340. Issue of keys of tables, cupboards etc. and custody of duplicate keys: A register will
be maintained by the Asstt. Audit Officer (Administration) in which complete particulars of
all tables, cupboard, etc. with locking arrangements, such as description, makers name,
painted number, name of the official to whom the furniture is issued and key number will be
recorded. The signature of the official to whom the original key is issued will be obtained in
this register at the time of initial allotment and whenever there is a change in the person using
the furniture. Duplicate keys of tables, cupboards etc. in use by Audit Officers/Sr.Audit
Officers will be kept in the custody of the Deputy Director/Director. Duplicate keys of
tables/cupboards etc. used by staff will be kept in the custody of the Branch Officers
concerned. The Deputy Director/Director and the Branch Officers will arrange to maintain
registers for recording the particulars of the duplicate keys in their custody.
Acknowledgement of the Chowkidar/Group D concerned will be obtained by the Senior
Auditor in charge of care-taking (Administration) in the register maintained by him, for the
keys of garages, lavatories etc.
In the event of loss of a key, the official concerned should intimate the same to
the Audit Officer/Sr.Audit Officer (Administration) and to the Officer with whom the
duplicate keys are kept. The duplicate keys will be issued after obtaining the signature of the
official in the register maintained.
When replacements for lost keys are obtained, the cost of the same will be
recovered from the official responsible for the loss of the original key.

57
Annexure IV (Para 306)
CENTRAL A DAK REGISTER
Date of receipt Letter No. From whom Subject in brief Section to which given
and Sl.No. and Date received

20.4.2000 371-Rly/SE/12-122/98 C&AG ATN on Audit Para No.3.4.2/1997- Reports
74 dated 17.4.2000 98-Non-recovery of maintenance
charges due to non-execution of
agreement with the siding owers

24.4.2000 RS/S/98/7906 Railway Supply of Corrosion Resistent Stores Headquarters
75 dated 11.4.2000 Board Steel Sheets and Plates

B DAK REGISTER OF ROUTINE SECTION
Date: 18.4.2000
No. of B Dak letters Distribution of B Dak letters
received -----------------------------------------------------------------------------------------------------------------------------
COR CON/SC THQ HYB. SC. GMs EHQ FA&CAO SHQ TA BHQ
DIVN DIVN Office

51 - 3 09 2 4 5 - 1 - 7 27

58
A/B DAK
Date of Sl. Lr.No. From whom Subject Initials of Ref. To Initials of
receipt No. and date received Auditor File No. Auditor
(1) (2) (3) (4) (5) (6) (7) (8)

Annexure V (Para 314)
A & B DAK ARREAR LIST OF SECTION OF OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT, SOUTH CENTRAL RAILWAY
A Dak from To Receipt Nos. but not disposed
Letters received during the week/fortnight: ------------------------------------------------------------- of by
B Dak from To Receipt Nos.

Total Nos.

A Dak / B Dak: A Dak / B Dak
(A) Letters outstanding for previous period : (D) Letters kept pending
(B) Letters received during the period : i) for less than a month
Total : ii) for over a month of receipt(Details below)
(C) Ldtters disposed of finally : (E) Letters on which action is outstanding
Balance(Details at D & E) i) over one week/15 days but less than
15 days/month of receipt.
ii) Over 15 days/month of receipt
(details below)
Category Receipt No. & Date Lr.No. & From whom Subject Explanation for delay
D(ii) & E(ii) Date received
59
Annexure VI (Para 316)
Model List of Major and Minor Heads by which files should be classified

Letter O added to file Nos. represents files containing orders:

Major Head Minor Head

Administration:

I. Recruitment and Training 1. Recruitment (AuA/I/1/0)
2. Training (AuA/I/2/0)

II. Departmental Examinations 1. SOG Examinations (AuA/II/1/0)
2. Departmental confirmatory examination (AuA/II/2/0)
3. Revenue Audit Examination (AuA/II/3/0)

III. Deputations 1. Gazetted (AuA/III/1/0)
2. Non-Gazetted (AuA/III/2/0)
3. Non-Gazetted Auditors (AuA/III/3/0)
4. Non-Gazetted Stenos, LDCs (AuA/III/4/0)

COR Section:

I. Returns to CAG(R) 1. Audit of Railway Boards sanctions (Au/COR/II/1/0)
2. Arrear Report (Au/COR/II/2/0)

Establishment Audit:

I. Pay 1. Pay including special pay, personal pay etc. (AuE/HQ/I/1/0)
2. Fixation of Pay (AuE/HQ/I/2/0)
60

II. Allowance 1. Dearness allowance (AuE/HQ/II/1/0)
2. CA & HRA (AuE/HQ/II/2/0)
3. Travelling Allowance (AuE/HQ/II/3/0)

Expenditure Audit:

I. Tenders and Contracts 1. Tenders and Contracts (AuX/HQ/I/1/0)

II. Results of Test Audit 1. Draft Audit Notes (AuX/HQ/II/1/70-71)
2. Part I Audit Notes (AuX/HQ/II/2/70-71)
3. Special letters (AuX/HQ/II/3/70-71)

Books and Budget Section:

I. Appropriation Accounts, Finance Accounts and 1. Appropriation Accounts Grant No.1 (Separate file for each grant)
Capital and Revenue Accounts Au/B/HQ/I/1 (AuB/HQ/I/1/0)
2. Capital and Revenue Accounts (AuB/HQ/I/2/0)
3. Finance Accounts (AuB/HQ/I/3/0)

II. Returns 1. Returns to COR (AuB/HQ/II/1)
2. Administration (AuB/HQ/II/2)

III. P.O.Os. 1. P.O.Os. issued by the Principal Director of Audit (AuB/HQ/III/1)
2. Local office orders issued by the Sections (AuB/HQ/III/2)
3. P.O.Os. issued by Accounts Office (AuB/HQ/III/3)

Stores Audit Section:

I. Purchase Policy and Accountal 1. Direct Purchases (AuS/HQ/I/1/0)
2. Purchase through DGS&D (AuS/HQ/I/2/0)
61
3. Purchase through Controller of Printing and stationery
(AuS/HQ/I/3/0)

II. Reviews 1. Efficiency of internal check & review of Accounts Office
work (AuS/HQ/II/2/2)
2. Tenders and Contracts (AuS/HQ/II/2/2)

Workshop Audit:

I. Acts & Regulations affecting Service conditions 1. W.C. Act (AuW/HQ/I/1/0)
2. H.E. Regulations (AuW/HQ/I/2/0)

II. Casual Labour 1. Casual Labour (AuW/HQ/II/1/0)

III. Incentive Scheme 1. Incentive Scheme(AuW/HQ/III/1/0)

IV. Inspections 1. Programme of Inspections (AuW/HQ/IV/1)
2. Inspection Reports (AuW/HQ/IV/2/1/1970-71)
(For Inspection of each office separate case file should be opened)

Traffic Audit:

I. Frauds, Losses & Embezzlements 1. Frauds, Losses and Embezzlements (Au/TA/II/1)
2. Loss of cash at SC Goods Shed (Au/TA/I/2)

II. Correction slips to Codes and Tariffs 1. C.S. to Coaching Tariff (Au/TA/II/1)
2. C.S. to Goods Tariff (Au/TA/II/2)
3. C.S. to Red Tariff (Au/TA/II/3)
4. C.S. to Accounts Code Vol.II (Au/TA/II/4)
62

III. Rates & Circulars 1. Rates and Circulars LRA (Au/TA/III/1)
2. Rates and Circulars FRC (Au/TA/III/2)

Inspection Section (Headquarters):

I. Inspections 1. Programme of Inspection (Au/IHQ/I/1/0)
2. Advices to Offices regarding commencement of
Inspections (Au/IHQ/3)
3. Inspection Reports (for each office) separate file
such as Au/IHQ/I/4/1/70-71

II. Periodical Returns 1. Returns to COR (Au/IHQ/II/1)
2. Returns to Administration and other sections (Au/IHQ/II/2)

N.B. The list is only illustrative and not exhaustive.

*********
63
Annexure VII (Para 319)

Statement showing the period of preservation of the various kinds of records maintained in the Principal Director of Audits Office, South
Central Railway, which do not appear in Appendix I to the Railway Audit Manual.

Sl.No. Description of records Period of preservation in
complete account years

I. REGISTERS:

1. Register of Railway Boards sanctions 20 years
2. Register of General Managers sanctions 20 years
3. Register of Head of Departments sanctions 20 years
4. Register of reminders 02 years
5. Register of recoveries at the instance of Audit 03 years
6. Register of review of contracts 05 years
7. Register of common defects noticed in Administrative Offices 02 years
8. Register of review of Accounts Office work 03 years
9. Register of original audit by Gazetted Officers/Section Officers 03 years
10. Register of cases for possible inclusion in Audit Report 02 years
11. Register of draft paras 10 years
12. Register of Railway Boards Dak Summary 3 years for COR & 2 years for others
13. Register of progress of inspections 06 years
14. Register of important cases 05 years
15. Register of review of productivity of outlay Permanent
16. Register of points to be seen at inspections Permanent
17. Register of sanctioned strength (Administration Section) Permanent
18. Audit expenditure register (Administration) 05 years
19. Cash receipt and remittances register 05 years
20. Register of Liabilities 05 years
64

21. Register of Typewriters Permanent
22. Hindi Roster Permanent
23. Register of S.O.Os. 03 years
24. Stationery account Register 02 years

II. FILES ETC.:

1. Requisitions for vouchers 06 years
2. Dak Slips 02 years
3. Inspection Programme File 03 years
4. Man-Hours Statistics (Except Orders) 02 years
5. Setting up of Benevolent Fund Administration Section - Permanent, Others - 5 years
6. Review of Court Cases 03 years
7. Monthly Statistics of repairs to Locomotives, Carriages and Wagons etc.
(Published by the Railway Board) 05 years
8. Annual Statistics of Locomotives, Carriage and Wagons etc.
(Published by the Railway Board) 05 years
9. Review of published statistics of Railways - File 05 years
10. File regarding Power cost statements 03 years
11. File regarding wagon-building programme (sanctions of the Railway Board) 20 years
12. File regarding arbitration awards 10 years
13. File regarding division of rolling stock between India and Pakistan Permanent
14. File regarding the introduction of uniform cost accounting in
Railway Workshops (Sarkars report) Permanent
15. Rolling stock statements of Ex.B.L. Railway Permanent
16. Incentive Schemes papers etc. 10 years
17. Material for all India Civil List 01 year

65

18. Annual Returns regarding deputationists 3 years after the deputationists return to
parent office.
19. South Central Railway Fortnightly Gazettes 02 years
20. Papers relating to Gazetted Officers meeting COR-5 years, Others-2 years
21. Petty works programme 10 years
22. Quarterly/Half yearly progress reports of Major works received from the
Administration and similar statements 02 years
23. Returns to COR and other Headquarters Sections COR-3 years, Others-2 years
24. A dak and B dak Arrears lists 02 years
25. Correspondence with other Audit Offices 03 years after case is closed
26. Statistics of volume of work done 03 years
27. Papers relating to certification of eligibility of leave to Gazetted Officers of the Accounts
Department and check of their service statements 02 years
28. Copies of quarterly printed list of Gazetted establishment received from the
Railway Administration 05 years
29. Report on the check of L.P.R. cases 03 years
30. Paper relating to review of Foreign Service Contribution 02 years
31. Monthly Lists of Tenders 02 years
32. A.Ts. received from COS 02 years
33. Copies of Auction Sale orders 02 years
34. Copies of Tenders placed by the Railway Board 03 years
35. Survey Board Reports 03 years
36. Head of Departments sanctions 05 years
37. SOG Exam File 05 years
38. Answer Books of departmental examination (confirmatory) 1 year after the declaration of results if
no petition is pending

66

39. Arrear Claims 3 years or 1 year after completion of
Audit whichever is latter
40. Festival Advance 1 year after final recovery
41. Advance of pay on transfer 1 year after final recovery
42. General Inward & Outward Index registers 05 years

(Authority: HQrs., Offices Circular No.05-O&M/1993 No.673-O&M/62-90 dated 15.10.1993)

Note:1. Subsidiary selection registers are being maintained by sections in some cases viz. for J Vs, stores bills etc. The period of preservation
of these should be the same as for selection Registers. Similarly, papers on which selection is taken separately in some cases should be
preserved for the same period.

2. S.No.23 of the list: A and B Dak returns sent to COR section for consolidation etc. may be preserved in that section for 3 months
only.

*****

67
Annexure VIII (Para 323)

REGISTER OF PENDING CASES

To Asstt. Audit Officer/Section Officer : Every Monday
Branch Officer : 5
th
of every month
To be preserved for two years

Record of Submission

Month of Date Opening No. issued Total No. closed Closing Balance Initials of
Submission Balance during the during the (Sl.Nos. of cases) ----------------------------------------
Month month Ar./ SO/ B.O.
Sr.Ar AAuO
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Mar2000 1.4.2000 10 2 12 2 10
(1 to 5, 7 to 9,
11 to 12)

Contd.

68
Annexure VIII (Para 323) Contd.

PARTICULARS OF CASES

Sl.No. Case No. and Subject and action required Action taken
File No.
(1) (2) (3) (4)

1. Au/EHQ/42/98-99 Certain overpayments of C.A. resulting from a Dec1999. The file has been reviewed.
wrong interpretation of rule were noticed, It is observed that the review in respect of
requiring adjustments for earlier periods. F.A. all the departments except two departments
&.C.A.O. has promised to review all cases and has been carried out. This has been taken up
start recovery within three months vide his letter with FA&CAO vide letter No.Au/EHQ/42/
dated 20.12.1999. The Accounts Office file 98-99 dated 24.12.1999.
should be reviewed in the first week of August
to see if the action as proposed was taken.

Id/- 15.8.1999 Id/- 25.12.1999

69
Annexure IX (Para 326)

SECUNDERABAD.

_____________Section.
Register of Special letters/Part I Audit Notes (2000-01)
(To be preserved for 5 years)

I N D E X
1. Record of submission.
2. Issue of Special letters
3. Issue of Part I Audit Notes
In the record of submission, particulars such as opening balance, (No. & Items) issued during the month, closed during the month
and outstandings at the end of the month should be given.

Special letter
(Not more than 2 letters should be noted on each page)

Sl. Lr.No. & Dt. To whom No.of Paras involved & Money Ref. to Date of No. & Dt.
No. and subject issued brief particulars of the value inward Reminder/ of final Remarks
Objection (use catchwords) involved diary, if Rejoinder reply
any
1. 2. 3. 4. 5. 6. 7. 8. 9.

Contd..
70
Annexure IX (Para 326) Contd

Part I Audit Notes

(Not more than 2 cases should be noted on each page)

Sl. Lr.No. & Dt. To whom No.of Paras involved & Money Ref. to Date of No. & Dt.
No. and subject issued brief particulars of the value inward Reminder/ of final Remarks
Objection (use catchwords) involved diary, if Rejoinder reply
any
1. 2. 3. 4. 5. 6. 7. 8. 9.

Contd

71
Annexure IX (Para 326) Contd.

ROUGH AUDIT NOTES

Sl. Audit Note Particulars No. of Money value Action taken
No. No.& Date Paras if known
(1) (2) (3) (4) (5) (6)

Part II AUDIT NOTES

Sl. Ref. to RAN Pt.II Audit Particulars No. of Money value Action taken
No. No. & Date Note No. & Paras if known
date
(1) (2) (3) (4) (5) (6) (7)

Note: The Register of Progress of Inspections and the disposal of Inspection Reports should be maintained as indicated in Chapter XVI
(Inspections) of the Office Manual

..

72
Annexure X (Para 328)

LIST OF CODE BOOKS/MANUALS ETC. ASSIGNED TO VARIOUS
HEADQUARTERS SECTIONS FOR UPKEEP
..

Sl.
No.
Headquarters
Section
Particulars of Code Books/Manuals etc.
assigned
I. Administration 1) CAGs Manual of Standing
Orders(Admn.)
2) FRs., SRs and CSRs
3) GPF Rules
4) Medical Attendance Rules
5) GFRs
6) Delegation of Financial Powers
7) CCS (Conduct) Rules
8) CCS (Control, Classification and
Appeal Rules)
II. Coordination 1) Secret Memorandum (Railways &
Civil)
2) Railway Audit Manual
3) Manual of Standing Orders (Audit)
4) Office Manual
5) Introduction to Indian Government
Accounts and Audit
6) Audit Reports (State and Central)
7) PACs Reports and connected
publications
8) CAGs quarterly Audit Bulletins
III. Special Audit
Group
1) Railway Boards Manual of Statistical
Instructions Vol.I and II
2) General Managers Annual Reports
3) Report of the Railway Board on Indian
Railways
4) History of Indian Railways
5) Domestic Statistics
6) Constitution of India
IV. Books and Budget 1) Railway Accounts Code - Part I
2) All volumes of Civil Account Codes
3) CAGs list of Major and Minor heads
of Accounts
4) Compilation of Treasury Rules
5) Pay and Accounts Office Manual and
Forms
6) Railway Budget Papers including Pink
Books, Demand for Grants,
Explanatory Memorandum on Railway
Budget, Printed Appropriation
Accounts and connected publications
73
Annexure X (Para 328) Contd.

V. Establishment
Headquarters
1) Railway Establishment Code Vol.I
and II
2) Railway Boards Establishment
Manual
3) Schedule of Powers (Establishment
matters and Accounts Department)
4) FA&CAOs Manual (Establishment
and P.F. Sections)
5) Pension Manual
6) Workmen Compensation Act
7) Minimum Wages Act
8) Hours of Employment Regulations
9) Payment of Wages Act
VI. Expenditure
Headquarters
1) Railway Engineering Code
2) Schedule of Rates
3) Hand Book of specifications
4) Schedule of Powers (Works, Catering,
Miscellaneous and Public relations
matters)
5) Railway Boards Way and Works
Manual
6) Central Public Works Department
Accounts Code
7) Open Line Works Programme
8) Railway and Finance and
Administration Code (F & G)
VII. Traffic Audit 1) Railway Traffic (Commercial) Code
2) Railway Accounts Code Part II -
Traffic Accounts
3) Rate Tables, Tariffs, Supplements and
other publications issued by I.R.C.A.
and Railway Administration
4) I.R.C.A. Conference Rules
5) Schedule of powers (Traffic matters)
6) Publication on simplification of traffic
accounts
VIII. Workshop 1) Railway Mechanical Code
2) Railway Boards Rolling Stock
Programme
3) FA&CAOs Manual (Workshop
Accounts)
4) Factories Act
74

IX. Inspection
Headquarters
1) Pass Manual, FA&CAOs Manual
(Inspection Section)

X. Stores
Headquarters
1) Railway Stores Code
2) Schedule of Powers (Stores Matters)
3) FA&CAOs Manual (Verification
Section)

75
Annexure XI (Para 328)

Chapter I Organisation Admn. Section
Chapter II Departmental Regulations Admn. Section
Chapter III General Office Procedure Admn. Section
Chapter IV Administration Admn. Section
Chapter V General Audit Procedure COR Section
Chapter VI Expenditure Audit XHQ Section
Chapter VII Establishment and P.F. Audit EHQ Section
Chapter VIII Books and Budget including BHQ Section
Appripriation Audit
Chapter IX Workshop Audit Workshop Audit
Lallaguda

Chapter X Stores Audit SHQ Section
Chapter XI Traffic Audit (Coaching and Goods) TA (Coaching) Section
Chapter XII Special Audit Group SAG Section
Chapter XIII Internal Audit Internal Audit Section
Chapter XIV Co-ordination Section COR Section
Chapter XV Reports Section Reports Section
Chapter XVI Inspections IHQ Section
Chapter XVII Electronic Data Processing EDP Section
Audit (EDPA) Section
Chapter XVIII Costing Cell Costing Cell Section
76
Annexure XII (Para 331)

Scale of Furniture

The following are the scales of furniture laid down for the offices of the
Indian Audit and Accounts Department.

For Principal Director of Audit:

Cotton Durry .. 1
Woolen Carpet .. 1
Table Officers .. 1
Side Table .. 1
Armed Chairs .. 6
Chair Armless .. 1
Easy Chair .. 1
Door Mat .. 1
Side Rack .. 1
Hat Stand .. 1
Book Case(Revolving or glazed) .. 1
Foot Rest .. 1

For Deputy Director/Director:

Woolen Carpet .. 1 (12x9)
Table Officers .. 1
Side Table .. 1
Side Rack .. 1
Armed Chairs .. 3
Cotton Durry .. 1
Door Mat .. 1
Hat Stand .. 1
Chair Armless .. 1
Book Case(Revolving or glazed) .. 1
Foot Rest .. 1

For Sr.Audit Officer/Audit Officer:

Officers Table .. 1
Side Table .. 1
Side Rack .. 1
Armed Chairs .. 2
Chair Armless .. 1
Cotton Durry .. 1
Book Case .. 1

77
Asstt. Audit Officer/Section Officer (Audit):

Table (Supdt.) .. 1
Side Rack .. 2
Armed Chairs .. 2
Armless Chair .. 1

For Auditors / Stenographers / LDCs / Daftries:

Clerks Table .. 1
Clerks Chair .. 1
Side Rack .. 1 (for Auditor & Stenographer only)

For Typists:

Table Typist .. 1
Chair Clerk .. 1

For Group D Staff:

One Stool each

(Authority: Comptroller and Auditor General of Indias Lr.No. 80-
NGE.I/26 dated 15.01.1965)

*****

78
CHAPTER - IV
ADMINISTRATION
401. This section deals with the personnel and administrative matters relating to the office
which are generally indicated below:
(a) Administration:
(i) Appointment, transfers, promotions, deputations, grant of leave and grant of advances
etc. of staff upto Audit Officers/Sr.Audit Officers grade.
(ii) Recruitment of Group D and casual labour.
(iii) Office accommodation.
(iv) Section Officers Grade Examination and other departmental examinations.
(v) Maintenance of Service Registers and Leave accounts.
(vi) Preparation of Pension Papers.
(vii) Maintenance of casual leave account of (a) staff of Administration Section and (b) all
Group D staff at Secunderabad.
(viii) Issue of Privilege Passes/PTOs, Duty cheque passes and maintenance of accounts
thereof of all the Group A & B officers, Group C and D officials of
Administration, Co-ordination, EDP, Reports, SAG and Inspection Headquarters
Sections. Issue of complimentary passes, school passes, card passes, transfer passes,
sports account passes etc. of all the officers and staff at Headquarters.
(ix) Procurement and upkeep of furniture and office machinery.
(x) Indenting and supply of Stationery and liveries.
(xi) Receipt and Despatch.
(xii) General Maintenance and Upkeep of Office Library.
(b) Budget and Control over Expenditure:
(i) Preparation of temporary staff proposals, and Budget proposals.
(ii) Registers of expenditure and their reconciliation.
(iii) Submission of Control Statements and other returns to Comptroller and Auditor
General of India.
(iv) Appropriation Accounts relating to the accounts of this office.
(c) Welfare and Caretaking: Welfare Assistant: To assist the Welfare Officer, a post of
Welfare Assistant is operated in the Administration Section. He is entrusted with the
following duties.
(a) Staff matters:
(i) Assisting the Welfare Officer in looking into the difficulties or grievances of members
of the staff and arranging for personal hearing, wherever possible.
79
(ii) Providing assistance to members of the staff who become suddenly ill or those who
are chronically ill. To assist staff members in securing accommodation facilities in
Hospital and to help, in case of need, families of persons on protracted tour.
(iii) Helping, where essential, the members of the staff in securing admission of their
children in schools, colleges and other educational institutions.
(iv) Assisting staff members in connection with staff welfare, such as Benevolent Fund
etc. as may be entrusted from time to time. Liaison with staff Benevolent Fund
Committee in providing financial help.
(v) Initiating action for providing immediate monetary relief to the members of the
bereaved family in case of death while in service.
(vi) Ensuring that payment of settlement dues of retiring officials etc. is effected promptly
by the day following the date of retirement by contacting the Accounts Officers
concerned and the pension payment orders are also issued expeditiously by the
Accounts Officers.
(vii) Attending to the complaints regarding the delays in the payment of dues to the
members of staff and ensure that such payments are effected promptly.
(viii) Assistance to staff members in arranging for procurement of life-saving drugs.
(ix) Helping the staff to obtain blood from blood banks in urgent need, promoting
donation of blood.
(x) To attend to representation of Group D personnel.
(b) House Keeping:
(i) Cleanliness of office premises and bath-rooms including adequate water supply as
also drinking water supply.
(ii) Neatness of work place and proper maintenance of furniture.
(iii) Removal/weeding and destruction of unwanted records and elimination of congestion
in sections.
(iv) Adequacy of light and ventilation in the offices.
(v) Arranging parking lots for cycle and scooters and ensuring their safety and protection
against sun and rain, to the extent possible.
(vi) To assist Administration in local purchases by obtaining quotations/tenders and
scrutinizing the same.
(vii) Supervision and maintenance of the garden.
(c) Care-Taking:
i. To ensure proper opening and closing of the office buildings.
80
ii. Marking attendance of the Group D staff, their deployment, control and making
arrangements during the periods of their leave.
iii. To attend to the representations of Group D personnel regarding the supply of
uniforms and other aspects.
iv. Supervision of the work of maintenance of gardens by the Malis.
v. Maintenance of the duty rosters of Chowkidars and making arrangements for the work
when any of them is suddenly absent.
vi. Tight control over the day-to-day security arrangements, especially checking the
functioning of the Chowkidars outside office hours.
vii. To look after the cleanliness of the office as a whole.
viii. Inspection of sections from time to time and suggesting ways for improving the
facilities in the sections in regard to furniture, adequacy of space, provision of lighting
etc.
ix. To be in constant touch with the Signal and Telecommunications Department
regarding failure of telephones and the Electrical Department for failure of electricity
and replacement of defective fans and bulbs.
x. Maintenance and verification of dead stock items.
xi. Any other duty in connection with the upkeep of the office as entrusted to him from
time to time.
(d) Cultural and Recreational Activities:
(i) To act as liaison in conducting Inter-Audit/Central Government Employees Welfare
Coordination Committee Tournaments in various games arranged by the
IA&AD/CGEWCC.
(ii) To encourage players to participate in games.
(iii) Liaison with the Recreation Club.
(iv) To help in issuing notices regarding grant of permission to staff for leaving office
early to attend sports events and for closing of office as a mark of respect to deceased
employees, arranging for condolence meetings and despatch of condolence
resolutions to the families of the deceased.
(v) Any other work that may be entrusted by the Principal Director of Audit.
402. Communal Roster: A communal roster indicating the number of reservations to be
made for Scheduled Caste and Scheduled Tribe candidates in respect of recruitment and
confirmations should be maintained in accordance with the orders issued by the Government
of India from time to time. Reference should be made to the Brochure on Reservations for
Scheduled Castes and Scheduled Tribes in services issued by the Ministry of Home Affairs.
81
After the introduction of Post based reservation rosters w.e.f. 2.7.1997, the
size of the roster shall be kept equal to the sanctioned strength in a cadre. Dereservation is
necessary only when a point in the roster proposed to be filled up is earmarked for reserved
category for which no eligible candidate from that community is available for promotion.
Even if, there is shortfall in the representation of reserved category candidates in a particular
cadre, in case the point which is proposed to be filled up falls on an unreserved point, the
question of dereservation would not arise.
(C&AGs letters No.1082-NGE(App)/3/97 dt10.9.97, 1285-NGE(App)/3-98
dt.4.12.98 and 276-NGE(App)/3-2000 dt.25.2.2000 Page Nos.16,86 and 95 of
AuA/VI/10/PBR/Vol.I).
403. Training of Auditors: New recruits will be posted initially to regular sections so that
they may gain rudimentary knowledge about the office work. They will be given training for
a period of three months.
The training classes will be conducted in the forenoons and the trainees will be
sent to their respective sections in the afternoons for practical training.
The trainees will maintain diaries to record briefly what they learnt during
their training period. These diaries will be submitted daily to the Asstt. Audit
Officer(Training) who will submit them to the Deputy Director/Director every Monday.
The lectures will cover all items of work done in the various sections of the
office. As part of the practical training the trainees will be taken to Railway Stations,
Engineering Offices, Workshops, Stores Depots and different sections of the Accounts Office
to explain to them in detail how the initial records are maintained.
Tests will be conducted periodically on each subject and results thereof put up
to the Principal Director of Audit.
The Asstt. Audit Officer(Training) should indicate in his weekly diary the
progress of training with reference to:
I. Syllabus covered,
II. Tests held,
III. Items covered in practical training, and
IV. General remarks on the receptivity of the trainees.
Cases of trainees showing want of interest or progress in work should be put
up confidentially to Deputy Director/Director/ Principal Director of Audit.
Training should be imparted to new recruits and promotees before they
complete one years service in Auditors cadre and before they become eligible to appear in
the Departmental Examination for Auditors.
(Comptroller and Auditor Generals letter No.1933-NGE.II/100-67 dated
24.9.1968).
The Clerk/Typists promoted to Auditors cadre should also be given suitable
training for a period of six weeks in not more than two batches in a year.
82
8.1.1968)
404. Departmental Examination for Auditors: All direct recruits as well as Clerks/Typists
promoted as Auditors should pass the Departmental Examination which is a pre-requisite for
confirmation and promotion as Senior Auditor. The Examination will be held twice a YEAR
IN February and August each year. Proposals should be put up to Principal Director of Audit
in J anuary and J uly for nominating the Officers for setting all the 3 question papers. The
dates of the examination will be determined by the Principal Director of Audit. The Syllabus
for the examination is given below:
Paper Duration Maximum
Marks
Paper I - Railway Audit 2 Hours 100
Paper II - General Rules and Procedure 2 Hours 100
Paper III - Revenue Audit (Railways) 3 Hours 100
Note: Candidates will be declared to have passed if they obtain 40% of marks in each of the
papers. A candidate who fails to pass the examination but obtains in any paper atleast
50% of marks will be exempted from appearing again in that subject.
(Comptroller and Auditor Generals letter No.301-Exam./22-84 dated
3.4.1984 and 3-Exam/160-86 dated 2.1.1987)
The honoraria admissible to the examiners are as under:
1. For setting the
question papers
3 hours paper Rs.160/-
Less than 3 hours paper Rs.130/-
2. For Valuation 3 hours paper Rs.3.30 per paper
2 hours paper Rs.2.80 per paper
2 hours or less Rs.2.20 per paper
If the amount of honorarium computed on the above basis is less than Rs.10/-,
an amount of Rs.10/- will be granted as Honorarium.
(Authority: 263-NI/48-84 dated 13.2.89 - C.S. No.123 dt.13.12.89 to Para
313.A to MSO(A) Vol.I Second Edition)
Auditors who have rendered atleast one years service as on 1
st
February and
1
st
August are eligible to appear in the Examination. Auditors transferred from other offices
who have already passed the examination in their offices need not sit for the examination
again. The Principal Director of Audit may at his discretion condone deficiencies in the
prescribed service upto a limit not exceeding 60 days as on 1
st
day of the month in which the
examination is held.
(CAGs Lr.No.527-Exams/20-84/IV dt.20.8.91)
The Auditors and promotee Clerk/Typists are allowed six chances in six
consecutive examinations to pass the examination. Absence in any examination for whatever
reasons will also be taken as chance availed. Failure to pass the Departmental Examination
within the stipulated time/number of chances will entail discharge from service in the case of
83
direct recruits and reversion to Clerk/Typists in the case of promotees. The reverted
Clerk/Typist will have three more chances to clear this examination within two years of the
reversion.
Note: Two additional chances for appearing at the Departmental Examination can be
considered on merit alone for those who have exhausted all the six chances but could
not avail of one or two chances due to genuine reasons like national calamity,
compelling family circumstances, illness of self and family and any other such
circumstances considered by the Head of the Department to be genuine.
(Para 9.4 to 9.4.2 of Manual of Standing Orders(Admn) Vol.I)
The promotee Clerk/Typist who was reverted to the post of Clerk/Typist for
having not passed the Departmental Examination within the stipulated number of chances
will be considered for re-promotion, with others, only after completion of 5 (five) years from
the date of reversion.
While issuing the orders of promotion, this condition shall invariably be
incorporated in the promotion order itself.
(C&AGs letter No.654-NGE/App/53-90 dated 17.6.98 Page No.16 of
AuA/Confdl/O/15 Vol.I)
(Para 57 of Railway Audit Manual and Paras 287 and 288 - Manual of
Standing Orders(Admn) Vol.I and M.I.R. 4.3.1., 4.3.2. and 4.3.3.)
405. Section Officers Grade Examination: Section Officers Grade Examination is held
once a year, on the dates fixed by the Comptroller and Auditor General. Persons who have
put in a minimum of three years service in one or more of the following capacities will be
eligible to sit for the examination.
i) As Clerk/Typist, Auditor, in an Audit Office.
ii) As a Stenographer in an Audit Office.
The Head of Offices may recommend to the Comptroller and Auditor General
for consideration suitable and deserving cases for condonation of deficiency, not exceeding 2
months in each case in the minimum qualifying service of three years required for eligibility
to appear in the examination.
The maximum number of chances for Part I of the Section Officers Grade
Examination will ordinarily be 6. Indefinite number of chances in Part I shall, however, be
allowed to those candidates who secure 30% marks in aggregate in any one of the last two
chances availed of by them.
There will be no limit to the number of chances for Part II of the Examination.
406. Selection and training of candidates for Section Officers Grade Examination: After
the results of the Section Officers Grade Examination are announced, names of intending
candidates for the next examination should be obtained in the prescribed proforma.
84
A Preliminary test will be conducted for those who are appearing for the first
time to select the candidates who will be allowed to sit for the examination. The test will
consist of two papers each of three hours duration - one on General English/General Hindi
and Constitution of India and the other on Omnibus Paper (without books) covering the
subjects on Establishment and Expenditure, prescribed for Part I of Section Officers Grade
Examination.
Candidates qualified in the Preliminary Test but not sitting for the examination
should again have to pass the Preliminary test if he is to appear for the examination in the
subsequent year.
Lectures will be given to the Section Officers Grade Examination candidates
for Part I and II Examinations by Asstt. Audit Officers and Audit Officers/Sr.Audit Officers
nominated by the Principal Director of Audit. The maximum number of lectures to be given
is 10 in the case of Prcis and Draft and 12 in the case of other subjects.
The lectures should be of not less than 75 minutes duration and should be
given within the office hours. Honorarium at the rates prescribed by the Comptroller and
Auditor General will be paid to the lecturers.
407. Statement of candidates for Section Officers Grade Examination: A list of
candidates eligible for Section Officers Grade Examination Part I and II, approved by the
Principal Director of Audit, will be sent in the form prescribed in Para 9.2.3 of the Manual of
Standing Orders(Admn.) Vol.I so as to reach Comptroller and Auditor Generals Office by
15
th
August each year. An indication whether a particular candidate belongs to Scheduled
Caste or Scheduled Tribe should be given. The following information should also be
indicated invariably in the list of candidates.
In the case of a candidate who has secured the concession of another chance in
Part I of the Section Officers Grade Examination, by virtue of his having secured 30% of
marks in the aggregate in any one of the last two chances, actually availed of by him, the
month and year of that examination, the index number then allotted and the marks obtained
should be indicated against his name in the Remarks column of the statement.
The list compiled by the Administration Section should be checked in detail
by a Section Officer/Asstt. Audit Officer and an Audit Officer/Sr.Audit Officer other than
those who are responsible for the compilation. As soon as an advice is received from the
Comptroller and Auditor General about the programme of the examination and the index
numbers allotted to the candidates, the candidates should be notified and a copy of the
instructions also supplied to them. Candidates who secure exemption marks in two subjects
in Part I will be allowed to take the third subject along with Part II Examination. Candidates
who have passed Group I of the final examination of I.C.W.A., will be exempted from
Accountancy paper in Part II.
Note: For the subject Open-line Revenue, I.R.C.A. Coaching and Goods Tariff and
General Classification of goods in force on 1
st
April preceding the examination will
be the test books. (Comptroller and Auditor Generals letter No.389-Exam/151-67
dated 25.7.1968).
85
408. Withdrawal from the examination: Candidates who wish to withdraw from the
examination, whether Part I or Part II, should apply for permission to do so before the lists of
eligible candidates are sent to Comptroller and Auditor General i.e. 15
th
August.
Applications received afterwards will not be considered unless there are very
compelling reasons in support of the request. Permission to withdraw ones name should be
applied for in any case before the commencement of the examination.
409. Conduct of the Examination: The examination will be conducted by the I.A.&.A.S.
Officers nominated by Comptroller and Auditor General. A list showing the particulars of
candidates who have been allowed by the Principal Director of Audit to withdraw from the
examination should be forwarded to Comptroller and Auditor General after the examination
is over.
410. Grant of leave to Section Officers Grade Examination candidates for preparation:
Leave may be granted to Section Officers Grade Examination candidates for preparation
subject to administrative convenience and with due regard to the principles enunciated in
S.R.232.
411. Pass and Travelling Allowance to Section Officers Grade Examination
Candidates: The Section Officers Grade Examination is treated as an obligatory
examination for the purpose of Travelling Allowance. J ourneys performed in connection
with the examination are treated as journeys on tour. No daily allowance will, however, be
paid for the days of halt at the place of examination. Travelling Allowance for the journeys
may be given only for the first two attempts of a particular examination.
(Comptroller and Auditor Generals letter No.Admn/15-44/56/10638 dated
18.11.1960)
412. Revenue Audit Examination for Section Officers/Asstt. Audit Officers: A
Departmental examination called Revenue Audit Examination for Section Officers of the
Railway Audit Department has been introduced from the year 1974.
The examination will consist of 2 papers each of 3 hours duration and carrying
150 marks each. (Paper I deals with Income Tax and Paper II deals with Revenue Receipts of
the Department). The minimum marks required for a pass in the examination will be 40% in
each paper but candidates who obtain 60% or more marks in any paper will be exempted
from appearing in that paper in the subsequent examination. The examination will be held
once a year on the dates to be determined by the Comptroller and Auditor General.
(Comptroller and Auditor Generals letter Nos.902-Exam/102-72 dated
31.10.1973, 266-Exam/102-72 dated 3.6.1974 and 170-Exam/8-1985 dated 18.3.1987)
413. Conditions of eligibility to sit for the Exam: The completion of the prescribed course
of training will be an essential condition for eligibility for appearing in the examination.
Section Officers Grade Examination passed Auditors who have not been promoted and those
officiating as Section Officers in purely temporary leave vacancies will not be allowed to sit
for this examination.
3.6.1974 and 372-Exam/102-72 (III) dated 10.7.1974)
86
414. Maximum Number of Chances: The maximum number of chances allowed for passing
this examination will be 6 (six) without any age restriction. Permission accorded to appear in
any particular examination shall count as one chance irrespective of the fact whether the
candidate actually sits for the examination or not, unless he is specifically allowed by the
Head of Office to withdraw his candidature. Such withdrawal shall not be allowed unless the
circumstances of the case fully justify the concession. Permission to withdraw ones
candidature should be applied for as early as possible and in any case before the
commencement of the examination.
(Comptroller and Auditor Generals letter No.1115-Exam/183-80 dated
14.10.1980 and Para 9.3.3. of Manual of Standing Orders(Admn.) Vol.I)
415. Incentive to candidates passing the Examination: Such of those Section
Officers/Asstt. Audit Officers who pass the Revenue Audit Examination will be allowed one
advance increment in the Section Officer/Asstt. Audit Officers scale (as the case may be) in
which the pay is drawn at the time of writing the examination taking effect from the day
following the last day of the examination. The next increment will accrue on the normal date
of increment of each official. In the case of Asstt. Audit Officers passing this examination,
the advance increment has to be sanctioned by the Comptroller and Auditor General.
(C&AGs letter No.920-Exam/102.72 dated 31.10.73 and No.4093-GE.II/217-
86 Vol.II dated 4.12.87)
All the departmental officials, on passing intermediate and final examination
of I.C.W.A. are eligible for lump sum incentive of Rs.4,000/- and Rs.8,000/- respectively.
(Department of Personnel and Training O.M. No.1/2/89-Estt.(Pay-I) dt.9.4.99
received under CAGs No.184-Audit(Rules)/86-90/IV-99(41) dt.13.5.99)
416. Travelling Allowance to the candidates for training: The candidates who have to
proceed for the training to a center at a place other than their Headquarters will be entitled to
Travelling Allowance as on tour and the period of training will be treated as duty.
(Comptroller and Auditor Generals letter No.484-Rev-Rec(iv)/29-71 dated
27.6.1974)
417. Training of candidates: The Section Officers/Asstt. Audit Officers who desire to
appear in the examination would be given intensified training. The training will be in the
form of concentrated full time course spread over a period of 10 working days consisting of
25 lectures. Training will be arranged by the Accountant General (Audit-I), Andhra Pradesh,
Hyderabad.
418. Syllabus for examination: Syllabus for examination is given in Manual of Standing
Orders (Admn.) Vol.I. The candidates will have to equip themselves with the copies of codes
etc. prescribed in the syllabus both for training as well as for reference in the examination.
419. Statement of candidates permitted to appear in the Examination: Particulars of
candidates permitted to appear in the examination should be intimated to Comptroller and
Auditor General in Form No.9 given in Manual of Standing Orders(Admn.) Vol.I.
(Para 9.3.2. of Manual of Standing Orders(Admn.) Vol.I).
87
Immediately after the close of the examination, a certificate to the effect that
all the candidates who were allowed to appear in the examination had completed the
prescribed course of training should be furnished to Comptroller and Auditor General.
420. Departmental Examination for promotion as Stenographer: A Limited Departmental
Competitive Examination for Clerk/Typists for promotion as Stenographers will be held once
a year in the month of August. Any permanent or temporary regularly appointed
Clerk/Typist who has completed 2 years continuous service as Clerk/Typist in the I.A.&.A.D.
and who has passed the Matriculation examination will be eligible to appear in the
examination.
The crucial date to determine the eligibility will be the first day of the month
in which the examination is held. There is no limit on the number of chances which may be
availed of by a candidate. The examination consist of 2 parts viz. Part A - written test and
Part B - Shorthand test. The subject of the examination, time allowed, the maximum marks
for each subject and the standard and the syllabus will be as follows:
Part A - Written Test:
Subject Time allowed Maximum marks
Paper I General English 1 hour 75
Paper II Essay 1 hour 50
Paper III General Knowledge 1 hour 75
(Minimum qualifying marks will be 40% in each of the papers).
Part B :
Shorthand test in English/Hindi
(80 words per minute)
10 Minutes
passage
200 marks
(Minimum qualifying marks will be 55%).
(Comptroller and Auditor Generals letter Nos.186-190/N.2/40.84 dated
6.3.1984, 1259-Exam/21-84 dated September 1984 and Para 9.5 to 9.5.4 of Manual of
Standing Orders(Admn.) Vol.I).
421. Limited Departmental Competitive Examination for Matriculate Group D staff
for promotion as Clerk/Typists: (i) Group D staff who are Matriculates and who have put
in 3 years continuous service on the first day of the month in which the examination is held
are eligible to appear for this examination. The examination will be held once in a year in
September and will consist of 3 written papers on:
Subject Duration Maximum marks
1. English/Hindi 2 hours 100
2. Arithmetic and Tabulation 2 hours 100
3. General Knowledge and Office
Procedure
1 hour 100
(ii) The pass marks required is 40% in each of the 3 papers. The number of
chances shall be limitless. The candidates who pass the written papers of the examination
become eligible for promotion as Clerks/Typists. Candidates securing 45% marks in any
paper(s) would be exempted from appearing in that paper(s) in subsequent examinations.
88
(Comptroller and Auditor Generals letters No.341-Exam/161-83 dated
30.4.1984, No.691-Exam/161-83 dated 5.7.1984, 833-Exam/161-83 dated 23.7.1986, No.242-
Exam/161-83 Vol.II dated 23.4.1987 and Para No.9.6 of Manual of Standing Orders (Admn.)
Vol.I)
(iii) Failure to qualify in the type test by Clerk/Typist - adverse effects:
Promotee Group D should not be reverted for failure to qualify in the requisite type test.
However, such of the candidates who do not qualify in the prescribed type test would not
earn any increments nor become eligible for confirmation and promotion. They are also not
eligible to appear at any departmental examination on passing of which promotion is given,
i.e. Section Officers Grade Examination etc. They are however, eligible for exemption from
passing the type test on their reaching the age of 45 years.
On passing the type test, their increments held over will be released but arrears
prior to passing are not payable.
If any period of probation is prescribed in the post of Clerk/Typist, such period
of probation cannot be deemed to have been successfully concluded, till the type test is
passed.
In cases where exemption from type test is granted either on reaching the age
of 45 years or on medical certificates, the above mentioned disabilities due to non-passing of
type test will cease to be operative on such exemptions.
(Comptroller and Auditor Generals letter No.301-N.2/46.87 dated 1.4.1987)
422. Confirmation: A revised procedure for confirmation, retention of lien etc. has been
introduced with effect from 1.4.88 and accordingly confirmation will be made only once in
the service of the official, in the entry grade without linking the confirmation with availability
of permanent vacancy in that grade after successful completion of probation of 2 years and
passing the departmental examination in case of Auditors.
Confirmation in the grade to which initially recruited will be placed before
DPC and a specific order of confirmation will be issued when the case is cleared from all
angles.
As no officer otherwise eligible will have to wait for confirmation pending
availability of permanent vacancy, the need for following the procedure for declaring a
person quasi-permanent ceases to exist.
The benefits of having a lien in a grade will be enjoyed by all officers who are
confirmed in the grade of entry or who have been promoted to a higher post declared as
having completed the probation where prescribed or those who have been promoted on
regular basis to a higher post where no probation is prescribed under Rules, as the case may
be.
The present distinction between permanent and temporary employees for grant
of pension and pensionary benefits will cease to exist.
89
The need for reservation at the time of confirmation in posts and services
filled by direct recruitment will cease to exist, as everyone who is eligible for confirmation
will be confirmed.
(Authority: C&AGs No.2536-NGE.III/43-88 dt.20.7.88 NGE Group Circular
No.N/56/1988)
423. Applications for employment elsewhere: Applications for posts under Central or State
Government and Statutory Corporations should be sent to the Administration Section for
transmission to the prospective employer. No application should be sent direct.
Applications other than those in response to advertisements in newspapers or
circulars from Comptroller and Auditor Generals office will not be forwarded.
Applications from purely temporary employees may be forwarded unless there
are compelling grounds of public interest for withholding them. In the case of permanent
employees, however, only four opportunities in a year may be given to apply in response to
advertisements, unless in the interest of public service, they have to be withheld.
A written undertaking accepting the conditions stipulated in the Government
of India, Ministry of Home Affairs O.M.No.70/62/62-Ests.(A) dated 22.1.1966 should be
obtained before forwarding applications from permanent Government servants for posts in
Public Sector Undertakings/Autonomous Semi-Government Organisations. The foreign
employer should also be informed of this. Quasi-permanent employees appointed to such
posts should be treated as on foreign service for a period of two years and given the same
treatment as permanent employees.
Before forwarding the applications of temporary employees for posts in public
sector undertakings/organisations, a written undertaking to the effect that in the event of
selection to the posts applied for they will resign from Government service, should be
obtained from them.
{(1) Ministry of Home Affairs, O.M. No.70/62/62-Ests.(A) of 22.1.66; (2)
Department of Personnel and Training O.M. No.28016/5/85-Estt(C) dt.31.1.86, and
No.4(12)85-P&PW dated 31.3.87 as amended from time to time}
424. Compulsory retirement: Extension of service and Refused Leave: The provisions of
FR.56 regarding the age of superannuation are applicable to staff of this office.
In terms of FR(56)(J ) appropriate authority, if it is of the opinion that it is in
the public interest to do so, have the absolute right to retire any government servant by giving
him notice of not less than three months in writing or three months pay and allowances in
lieu of such notice.
The power to relax three months notice period vests in the President.
(Comptroller and Auditor Generals letter No.1603-NGE.I/313-65 dated
29.7.1967)
(i) If he is in Group A or Group B service or post in a substantive or temporary
capacity and had entered Government service before attaining the age of thirty five
years, after he has attained the age of fifty years.
90
(ii) In any other case, after he has attained the age of fifty five years.
This proviso will not apply to Group D Government servants, who entered
Government Service on or before 23
rd
J uly, 1966.
For the purpose of application of Fundamental Rule 56(J ) it is necessary to
determine if retention of Government servants beyond the age of 55 years will be in public
interest. For this purpose, the following procedure has been laid down.
(Ministry of Home Affairs O.M. No.33/15/66-Estts (A) dated 10.11.1966)
1. Case of a government servant should be reviewed six months before he attains the age of
55 years and decision taken thereon by the appropriate authority.
2. Once a decision is taken by the appropriate authority to retain a government servant
beyond the age of fifty five years in public interest, the employees concerned will
continue in service automatically till he attains the age of compulsory retirement. If,
however the appropriate authority subsequently considers that further retention of the
government servant will not be in public interest, that authority may take necessary action
to serve three months notice in terms of clause (J ) of Fundamental Rule 56. No proposal
for extension of service/re-employment beyond the age of superannuation will, ordinarily,
be considered. Detailed instructions regarding grant of extension of service (re-
employment) contained in Ministry of Home Affairs O.M.No.26/11/68 Ests.(B) dated
17
th
J une, 1969 should be borne in mind in recommending extension of service to staff.
All proposals for extension of service should be submitted to the Comptroller and Auditor
General.
(CAGs letter No.75-NGEI/150-67(I) dated 10.1.1968)
425. Pension: The payment of superannuation pension should in all cases commence on the
first of the month in which they are due. The Head of Office responsible for preparing the
pension papers will initiate the pension case 2 years before the date of retirement of the
Government servant. Deficiencies, imperfections and omissions in the Service Book should
be removed and the service book completed in good time, at any rate, not later than 8 months
in advance of the date of retirement of the Government servant. The actual work of
preparation of pension papers should be taken up 8 months before the date of retirement.
It shall be the responsibility of the officer maintaining the Service Registers to
make annual verification and also to complete and certify the service book in respect of
previous service on the 25
th
year of service or 5 years before the retirement and communicate
to the Government servant the period of qualifying service so determined in consultation with
the Principal Director of Audit, Eastern Railway.
(Ministry of Finance O.M.No.F.11(3)-EV(A)/76 dated 28.2.1976)
The progress of pension cases should be watched by means of the following
monthly, quarterly and half-yearly statements.
1. Statement No1: This is a monthly statement and should cover cases of all government
servants due to retire within the succeeding 8 months. It will indicate the progress of the
91
cases with reference to various stages and this should be submitted to Principal Director of
Audit by 5
th
of each month.
2. Statement No.2: This statement covers the cases of those who became due for retirement in
the preceding month and this should be submitted to Principal Director of Audit by 3
rd
of
each month.
3. Statement No.3: This is a quarterly statement and is meant to cover provisional pension
and/or provisional Death-cum-retirement-gratuity cases which are to be made final after the
expiry of the period of 6 months. This should be submitted to Principal Director of Audit by
10
th
of April, J uly, October and J anuary for the quarters ending 31
st
March, 30
th
J une, 30
th

September and 31
st
December respectively.
4. Statement No.4: This is a quarterly statement and should indicate the details of the
presumptions made in favour of the retired Government servants because of
incomplete/improper maintenance of Service Registers. This should be submitted to
Principal Director of Audit by 15
th
of April, J uly, October and J anuary for the quarters ending
31
st
March, 30
th
J une, 30
th
September and 31
st
In addition to the above, a six monthly report (Statement No.5) showing the
particulars of Government servants in whose cases pension was not determined within 6
months of the retirement should be submitted to Principal Director of Audit by 15
th
J uly and
J anuary for the half-year ending 30
th
J une and 31
st
December.
The Head of Office shall undertake the work of preparation of pension papers
in Form No.7, 2 years before the date of retirement and obtain particulars in Form No.5 from
the Government servant 8 months before the retirement. The Head of Office shall complete
Part I of Form No.7 not later than 6 months prior to the date of retirement of the Government
servant. Thereafter, the following documents shall be sent to Principal Director of Audit,
Eastern Railway with the pension case of every non-gazetted and Group B officer for
verification.
1. Details of service and the order of the pension sanctioning authority.
2. Medical certificate for invalidation (if the claim is for invalid pension)
3. Service Book.
4. Statement of average emoluments, reckoning for pension.
5. Form No.5
6. Form No.7
7. Statement showing calculation of pension, DCRG and Family pension.
In respect of Group A officers, the pension papers should be processed as
indicated above and sent to Pay and Accounts Officer, Office of the Accountant General,
Andhra Pradesh, Hyderabad, for verification and arranging payment.
In dealing with pension cases, the procedure laid down in Chapter.VIII of CCS
(Pension) Rules, 1972 may be kept in view.
92
426. Family Pension: Family pension is also verified and sanctioned along with the
superannuation pension and Death-cum-retirement gratuity and communicated to the
Accounts Officer.
427. Nomination: Every employee shall execute nominations for Family Pension and Death-
cum-retirement gratuity. The nominations for Death-cum-retirement gratuity should be
executed on completion of five years of qualifying service. These nominations are
scrutinised and put up to the Deputy Director (Head of the Office) for counter-signature.
Thereafter, necessary entries regarding the date of nomination for family pension/death-cum-
retirement gratuity are made in the Service Register of the individual and lodged in the
confidential file kept in the custody of the Audit Officer/Sr. Audit Officer(Administration).
A remark that the nomination is kept in the confidential file with the Audit Officer/Sr. Audit
Officer is also to be made in the Service Register. Acknowledgement shall also be given to
the individual concerned. In the case of employees who have elected to be governed by the
Family Pension Scheme, 1964, it is necessary to obtain particulars of composition of the
family and separate nominations for Family Pension are not necessary. These particulars
must be kept in the Service Register of the employee.
428. Settlement bills: When an employee retires from Government service, resigns or is
relieved on transfer to some other department or is retrenched or dismissed from service, the
pay and allowances due to him for the part of the wage period ending with the date on which
such event occurs should be drawn in a separate pay bill, marked prominently settlement
pay-bill. Before drawing such a bill, it should be ensured that there are no dues outstanding
against the employee.
429. Budget and Revised Estimates: The instructions contained in Paras 72 to 78 Railway
Audit Manual and Chapter IX of Comptroller and Auditor Generals Manual of Standing
Orders may be seen.
The Budget Estimates and Revised Estimates in respect of Group A, B, C
and D posts and office expenses shall be prepared in the following forms:-
1. Group B/Non-Gazetted Establishment - Forms A to D
2. Group A Officers - Forms E to H
While formulating the monetary estimates, the following instructions may be
kept in view, besides those issued from time to time.
The provision for men-in-position should be accurately estimated.
Provision for those posts out of the vacant ones which can be filled-in during
the remaining part of the year should only be proposed.
Provision for additional posts should not be made in the estimates. No
provision for additional posts under the head-Travel Expenses should be made.
The requirement under the head Salaries should be computed with reference
to actuals for the first 6 months and under other heads on the basis of actuals for the 5
months.
93
Provision for the purchase of items like Accounting Machines, Staff Car,
Water Coolers, Grants-in-aid etc. should be separately indicated.
Provision for Cash Awards to employees under the Hindi Teaching Scheme
may be provided under the sub-head Other Charges and shown distinctly.
Provision for special construction works and ancillary requirements should be
made under the sub-head minor works.
Explanations for variations should invariably be furnished in the estimates.
The estimate of funds required under the head salaries in the Budget will be
framed on the basis of trends over the preceding 3 years taking into account other relevant
factors like changes in rates of pay, allowances, number of posts and their filling and
economy instructions issued from time to time. With effect from 1987-88 provision for
Festival Advances should be made under salaries. The provision will be on a net basis i.e.
net of recoveries under the head salaries.
(CAGs letter No.2013-BRS/42-2000(Email) dt.10.9.2000 Circular No.6-
BRS/2000)
430. Estimates for Deposits and Loans, Pensionary charges: See Paras 76 and 77 of
Railway Audit Manual.
431. Register of Expenditure: All Pay, Travelling Allowance and other bills relating to
claims of staff for each month classified under the detailed heads of account should be posted
in this register. The bills should be serially numbered and entered in the register before the
fair copy of the bills are put up for signature of the Branch Officer.
(General Financial Rules-66)
433. Register of Contingent Expenditure: This register is intended to watch the
adjustments of debits pertaining to contingent expenditure such as telephone charges,
electricity charges, cost of stationery forms, books, periodicals, liveries and charges for repair
of furniture and office equipment. Before putting up these bills to the Branch Officer for
signature, the expenditure relating to this should be posted in the register. Total expenditure
booked on contingencies for a month should be posted in the expenditure register under the
detailed head 02-614-18-PDA/SCR/SC-A4(4)-Office expenses monthly.
Every month, the particulars of expenditure booked in the accounts of a month
should be ascertained from the Financial Adviser and Chief Accounts Officer and the same
reconciled with the expenditure booked in the Register of Expenditure.
434. Control Statements: The Comptroller and Auditor General controls the expenditure
under the major head 216-Audit incurred in the several Audit and Accounts Offices.
Principal Directors of Audit are responsible to keep the expenditure within the limits of
appropriation. For the purpose of exercising proper control over expenditure, a monthly
review of expenditure as specified in Paras 367 to 369 of the Manual of Standing Orders
should be prepared commencing from the month of September, and sent to the Comptroller
and Auditor General. The monthly review of expenditure in respect of Group A officers
and Group B/non-gazetted establishment should be prepared separately. The monthly
94
reviews of expenditure are required to reach the Comptroller and Auditor Generals office by
the middle of the month succeeding that to which they relate.
Only the amount of bills which have been actually passed for payment in a
particular month should be shown in column 3 of the monthly review of expenditure. As the
accounts of a particular month are not generally closed before the due date for the submission
of the control statement, statement of expenditure booked as also the expenditure proposed
for inclusion by Accounts Office in the accounts of that month has to be ascertained. This
expenditure, and not the expenditure as noted in the Expenditure Register, should be included
in Column 3 of the control statement.
The purpose is to review the expenditure upto-date and adopt special measures
to limit the expenditure on items which tend to exceed the estimate, or approach Comptroller
and Auditor General for a supplementary provision. The control statement upto J anuary due
by 15
th
February, should be specially scrutinised to surrender any unwanted provision.
(Paras 11.12 to 11.15 of Manual of Standing Orders (Admn.) Vol.I 3
rd

Edition).
435. Register of Liabilities: A Liability Register should be maintained with a view to
keeping a systematic watch on the liabilities to be met. The register should be maintained in
the form given below:
Sl. Particulars Approximate Date of receipt Reference to voucher
No. of indent cost and reference to debit or bill
for supplies issue vouchers ---------------------------
No. Date Amount
1. 2. 3. 4. 5. 6. 7.

When Reference to the entry in Remarks
accepted Contingency Register
8. 9. 10.

The register should be reviewed every month and suitable action taken to see
that supplies are made without undue delay and that bills are received and accepted in respect
of supplies made.
The register should be put up to the Audit Officer/Sr.Audit Officer(Admn.)
every month.
436. Appropriation Accounts: After the close of the accounts for the year, the
Appropriation Accounts of the expenditure pertaining to this office booked to the Civil Head
216-Audit will be prepared. In preparing the Appropriation Accounts, instructions issued
by the Principal Director of Audit, Central Revenues should be followed.
The accounts will be compiled in the proforma prescribed in Para 4 of the
Comptroller and Auditor Generals Manual of Standing Orders (Technical) Vol.II. The
95
explanations for variations should be drawn up carefully. The explanations for variation
should conform to the explanations given in the various control statements, especially the last
control statement. After approval by the Principal Director of Audit, the accounts will be
forwarded to the Principal Director of Audit, Central Revenues, by the date advised by him.
Copies of the Appropriation Accounts will be endorsed to the Comptroller and Auditor
General and General Manager(Budget), South Central Railway.
The audit certificate in the form prescribed will be signed by the Principal
Director of Audit after obtaining the necessary certificate of Audit from the Principal
Director of Audit, Central Revenues, in respect of expenditure relating to Group A officers
and from the Principal Director of Audit, Eastern Railway, in respect of Group B/Non-
gazetted establishment and forwarded to the Principal Director of Audit, Central Revenues.
437. Appropriation Accounts of Pensionary Charges: The Appropriation Accounts in
respect of pensionary charges will be compiled and sent to the Financial Adviser and Chief
Accounts Officer, of this Railway.
438. Drawal of H.R.A. and C.C.A.: HRA and CCA will be paid in the various pay ranges at
the rates fixed by the Government of India from time to time.
H.R.A. at the prescribed rates may be paid to all employees (other than those
provided with Government accommodation) without requiring them to produce rent receipts.
However, they should furnish a certificate to the effect that they are incurring some
expenditure on rent/contributing towards rent. H.R.A. at these rates will also be paid to
Government employees living in their own houses subject to their furnishing a certificate that
they are paying/contributing towards house or property tax or maintenance of the house.
439. Leave: Leave should be applied for by the staff in the prescribed form. Leave
applications will be considered only if they have been recommended by the Asstt. Audit
Officer/Section Officer and Branch Officers.
The Principal Director of Audit has delegated his powers to sanction all kinds
of leave (except Special Casual Leave, Special Disability Leave and Study Leave) to the
authorities mentioned in Column - 3 as indicated below, under the authority vested in him by
CAG vide letter No.2991-GE.II/109-84 dated 04.01.1985.

Category of
Employee
Period of Leave Competent
Authority
Remarks
(1) (2) (3) (4)
Asst. Audit
Officers
1) All kinds of leave
with pay and
allowances upto 30
days without a
substitute.
Group Officer
concerned
Leave to
Officers
working
directly with
Pr.DA should
be sanctioned
only with the
approval of
Pr.DA.
with pay &
allowances beyond
30 days.

Group Officer
incharge of
96
3) EOL with or
without M.C. and all
other kinds of leave.
Administration

All Group
C staff
1) Regular leave (EL
only) upto 30 days
without posting a
substitute
Branch Officer
2) HPL & Commuted
leave upto 30 days
Audit Officer/Sr.
Audit Officer
(Admn)

3) EOL with or
without M.C. and all
other kinds of leave
Group Officer
incharge of
Administration

All Group
D
All kinds of leave Audit Officer/Sr.
Audit Officer
(Admn)

(Authority: P.O.O. No.120, dated 10.7.1991)
Note:
1. The Branch Officers should sanction the leave based on the leave at credit advised by
the Administration section, in a copy of the abstract of attendance returned to them.
2. The Director/Deputy Director will sanction subject to eligibility, Earned Leave upto
the limits mentioned above in respect of Asstt. Audit Officers under their Group
charge.
All kinds of leave applications of Branch Officers are to be submitted to Pr. Director
of Audit for sanction (Authority: Circular No. Au/COR/I/Vol.VI dated 8/9.1.2001)
440. Travelling Allowance: Audit staff are governed by the Travelling Allowance rules
contained in the Indian Railway Establishment Code Vol.II. The provisions in
Supplementary Rules will, however, apply to the Railway Audit staff in respect of journeys
on deputation to and from non-railway offices.
The staff are required to present their travelling allowance claim in Railway
Travelling Allowance J ournal Form, in duplicate, to the Bills section. Separate travelling
allowance journal should be prepared for every month, even though the same tour may be
continued extending over different calendar months.
The travelling allowance journal should be scrutinised and submitted to the
Controlling Officer, i.e. Audit Officer/Sr.Audit Officer in charge of Bills in the case of non-
gazetted staff, and Deputy Director/Director in the case of gazetted officers for counter-
signature, after entering full details in the Register of Travelling Allowance Claims, to be
maintained separately for gazetted officers and non-gazetted officers.
Particulars regarding the claims viz. date of commencement and completion of
journey, number of days, rate of travelling allowance, gross claim, advance of travelling
allowance, net claim, date of passing the advance, and the month in which the travelling
97
allowance claims have been included will be noted therein. The register should be put up to
the Audit Officer/Sr.Audit Officer (Bills) along with the claims of non-gazetted officers
which he countersigns. Those of the gazetted officers should be put up to Deputy
Director/Director through Audit Officer/Sr.Audit Officer (Bills).
The travelling allowance claims of Group B Officers and non-gazetted
officers are paid through pay sheets. The amount of the claim in each journal will be entered
under the column Travelling Allowance in the monthly pay sheets. The original travelling
allowance journal should be attached to the pay bill and the duplicate travelling allowance
journals filed separately in Bills Section. Travelling allowance journals received in the Bills
Section upto 10
th
of a month will be included in the pay sheet of that month.
441. Advance of Travelling Allowance on tour/transfer: Applications for advance of
Travelling Allowance on tour should be submitted in the prescribed form. Advance of
Travelling Allowance on tour is normally admissible upto 75% of the anticipated claims. A
temporary employee should furnish surety bond from a permanent employee, alongwith his
application for advance. The advance of Travelling Allowance will be adjusted in the
Travelling Allowance Bills to be submitted immediately on the completion of the tour or on
31
st
March whichever is earlier. The advances granted in the month of March should be
adjusted before 30
th
April.
Advance of Travelling Allowance should be noted in the Register of
Travelling Allowance claims passed and attested by Audit Officer/Sr.Audit Officer (Bills).
442. Educational Assistance: A Government servant is eligible to draw Childrens
Educational Allowance when he is compelled to send his child to a school away from the
station at which he is posted and/or residing, owing to the absence of a school of the requisite
standard at that station.
The rates of allowance effective from 1.8.97 are as under:
Primary, Secondary and Higher
Secondary classes
Rs.100/- p.m. per child.

(Department of Personnel & Trainings O.M. No.21017/1/97/Estt(Allow)
dated 12.6.98)
The allowance shall be admissible to a Government servant throughout the
year, not withstanding that no tuition fees is paid during the vacation. Childrens Educational
Assistance shall be admissible in respect of children between the age limit of 5 years and 20
years. Assistance is admissible in respect of not more than 3 children born upto 31.12.1987
and shall be restricted to 2 children born thereafter.
dated 3.8.90)
The Government servant while applying for this allowance initially, should
furnish a certificate as per Rules and thereafter in the months of March and J uly every year.
443. Reimbursement of Tuition Fees: A Government servant shall be eligible to the
reimbursement of tuition fees payable and actually paid in respect of his/her child provided
98
that no childrens educational allowance is admissible to him/her. The tuition fees may be
reimbursed subject to the following limits w.e.f. 01.08.97.
1. Class X and below Rs.40/- p.m. per child
2. Classes XI & XII Rs.50/- p.m. per child
3. Physically handicapped
and Mentally retarded
Rs.100/- p.m. per
child
4. Science Fee, if charged
separately, in respect of
children studying in
Class IX to XII and
offering Science
subjects
Rs.10/- p.m. per child

A Government servant shall not be eligible to draw reimbursement of tuition
fees for a child for more than two academic years in the same class and in respect of not more
than 3 children at any time born upto 31.12.1987 and shall be restricted to 2 children born
thereafter.
A certificate shall be furnished as per rules at the time of preferring his initial
claim and thereafter in the months of March and J uly every year.
The concession will also apply to all Central Government employees without
any pay limits with effect from 01.12.1987.
(Department of Personnel and Training O.M. No.21017/1/97-Estt(Allow)
dt.12.6.98 read with O.M. Nos.21011/21/88-Estt(Allow) dt.17.10.88, O.M. No.12011/4/88-
Estt(AC) dt.31.5.89, No.120K/2/83/Estt(AC) dt.27.12.89, No.12011/2/88/Estt(AC) dt.3.8.90
and O.M.No.12013/1/90-Estt(AC) dt.8.5.92)
444. Festival Advance: Festival Advance is granted to the non-gazetted employees whose
basic pay does not exceed Rs.8,300/- p.m. for the festivals nominated by the Principal
Director of Audit. This advance is admissible for any one festival during the calendar year
and is recoverable in ten equal instalments. No Festival Advance for the next year will be
granted until the advance granted in the previous year is recovered fully.
MONTHLY REVIEW REPORT
445. Monthly Review Report on the activities of Administration Section: The
Administration Section should submit a monthly review report on the activities of that section
in the proforma given in Annexure XIII to this chapter. This monthly report should indicate
the position obtaining on the last working day of that month and should be put up by 15
th
of
the following month to Principal Director of Audit through Deputy Director/Director.
(P.O.O. No.85 dated 11.10.1985)

99
Annexure XIII (Para 486)
CHECK LIST
MONTHLY REVIEW OF ACTIVITIES OF ADMINISTRATION SECTION
(Position at the end of the month, to be submitted on the 15
th
of the following month).
POSITION AS ON:
I. Vacancies:
(i) Senior Audit Officers :
(ii) Audit Officers :
(iii) Assistant Audit Officers :
(iv) Section Officers :
(v) Senior Auditors :
(vi) Auditors :
(vii) Stenographers :
(viii) Clerk/Typists :
(ix) Record Keepers :
(x) Daftries :
(xi) Peons/Sepoys :
(xii) Safaiwalas :
II. Promotions Due:
(i) Sr.Audit Officers :
(vi) Auditors :
(vii) Clerk/Typists :
100
(viii) Record Keepers :
(ix) Daftries :
III. Confirmations Due:
(i) Sr.Audit Officers :
(vi) Auditors :
(vii) Stenographers :
(viii) Clerk/Typists :
(x) Daftries :
(xi) Peons/Sepoys :
(xii) Chowkidars :
(xiii) Safaiwalas :
IV. Deputationists (Due to return within six months):
V.(a) Examinations:
1. Revenue Audit Examination for
Section Officers/Asstt. Audit
Officers :
2. Section Officer Grade
Examination :
3. Departmental Examination
for Auditors :
4. Type Test :
101
5. Limited Departmental
Examination for Matriculate
Group D :
(b) Examinations to be arranged :
(c) Internal Tests held for
SOGE candidates :
VI. Preparation of Panels Due:
(i) Senior Audit Officers :
(vi) Auditors :
(vii) Clerk/Typists :
(viii) Daftries :
VII. Budget:
(a) Current year :
(b) Revised Estimates(Next Year):
(c) Control Statements :
(d) Reconciliation of monthly
expenditure :
(e) Grants-in-aid (Recreation
Club) :
VIII. (a) Number of Fresh Appointments:
(i) Auditors :
(ii) Stenographers :
102
(iii) Clerk/Typists :
(iv) Group D :
(b) Number to be Trained:
(c) Opening History Cards:
Audit Officers :
(d) Gradation List:
(e) Opening of Service Book
of New Appointees:
IX. Rosters:
(a) Are Rosters upto date and :
authenticate?
(b) Indicate details of dereser- :
vation proposals pending
with C&AG
X. Claims:
(A) Sanctions:
List cases if any of increments
not sanctioned in respect of Audit
Officers, Asstt. Audit Officers,
Section Officers, Sr.Auditors,
Stenos, Clerk/Typists, Record Keepers,
Daftries and Group D.
(B) Drawals:
Certified that there are no outstanding
personnel claims except for the following:
(i) More than six months old :
103
(ii) More than three months old :
(iii) Between One and three months:
(iv) Less than One month :
XI. Quarterly Review of Officers who
attain age of 50 to 55 years/ or put
in 30 years of service
XII. Verification of Service/Leave
Accounts
(a) Pensionable staff(including recovery
of foreign service contributions to whom
due and when last done
(b) Settlement of cases of Officers and staff
to be undertaken 6 months prior to
retirement
(c) Pension, D.C.R.G., G.P.F., Encashment of
leave to retired personnel due during
the month
XIII. Complaints from Staff and Representations
from Staff Council :
Opening balance :
Fresh receipts :
Disposals :
Closing balance :
XIV. Hindi Returns:
(a) Quarterly Return :
(b) Half Yearly Return :
(c) Hindi Meetings :
(d) Report to Hindi Rashtra
Bhasha Committee :
XV. Outstanding References:
(a) Ministry :
104
(b) Comptroller and Auditor General :
(c) Other Offices :
XVI. Submission of Calendar of Returns:
(a) Due and actual date of submission:
(b) Delayed Returns
XVII. Record Management:
Maintenance and Destruction of
Records due and actually done.

105
402. Staff Proposals: The staff proposals should be sent to the Comptroller and Auditor
General of India by 25
th
J uly every year. To ensure the submission of the proposals by the
due date, various sections and Branch Offices should forward their proposals to the
Administration section, by 25
th
J une or by any other date prescribed by the Administration
Section together with the detailed statistical data, in triplicate. The justification for the
existing strength of additional staff required should be supported by data on the basis of
monthly average of work done in May, J uly, J anuary, February and March (excluding March
final and supplementary accounts) of the preceding financial year.
The following general instructions should be strictly adhered to in formulating
the proposals:
1. The prescribed standard time for each item of work has to be adopted.
2. Items for which no standards are fixed by the Comptroller and Auditor General of
India should be exhibited in a separate statement adopting adhoc standards.
3. The standard per auditor should be taken as 160 hours per month.
4. The man-hour statistics compiled by the Section Officer/Asstt. Audit Officer of the
section concerned should be got checked independently by another Section
Officer/Asstt. Audit Officer nominated for the purpose and reviewed by the Branch
Officer (Administration). The man-hour statistics for the whole office should be test
checked by Asstt. Audit Officer (Internal Audit). A certificate to the effect that the
statistical data prepared by the respective sections has been duly re-checked
independently by a Section Officer/Asstt. Audit Officer should be given in the letter
forwarding the staff proposals to Comptroller and Auditor General of India.
On receipt of the proposals supported by man-hours statistics from the
sections and Branch offices, the Administration Section should submit a note to the Principal
Director of Audit indicating the particulars of posts proposed for creation and continuance.
Where the increase or decrease in work load as compared with the previous year is not more
than 5%, detailed staff proposals need not be forwarded to Comptroller and Auditor General
of India. However, a certificate indicating that there is no reduction of staff based on work
load and as such the existing strength may be allowed to continue may be sent to Comptroller
and Auditor General of India. In case the increase in work load in a particular group or
groups justifies more staff (and the work load has increased by more than 5% as compared
with the previous year) proposals may be sent for sanction of additional staff for this
particular group or groups. In all such cases, reasons for variation by more than 5% as
compared with the work load during the previous 2 years may be given. Only the posts
approved by the Principal Director of Audit for creation and continuance should be included
in the staff proposals to be submitted to the Comptroller and Auditor General of India. The
proposals should be submitted in four parts.
Part I : Proposals based on the prescribed standard rates of work, taking the
group/section as a whole.
Part II : Proposals pertaining to various sections in respect of which work
standards/norms have not been prescribed.
106
Part III : Proposals for posts required for casual/seasonal items of work as well as those
pertaining to the continuance of the existing posts which have been sanctioned
on adhoc basis.
Part IV : Proposals for additional posts to cater to anticipated increase in work on the
basis of average increase in work during the preceding 3 years.
The following statements should also be furnished with the staff proposals:
i) A summary of the proposals in the form enclosed to Comptroller and Auditor General
of Indias office circular letter No.1766-BRS/185-78 dated 24
th
June, 1978.
ii) A statement showing the group/section-wise distribution of the regular sanctioned
strength (both permanent and temporary) other than casual posts as on 1
st
March.
iii) A statement of regular temporary posts for which provision is proposed to be made in
Revised Estimates and Budget Estimates in the form enclosed to Comptroller and
Auditor General of Indias circular letter No.1393-BRS/87-65 dated 29
th
June, 1965.
iv) A statement indicating clearly the additional posts proposed on work standards/norms
for the different groups/sections.
v) Full details of the existing permanent posts held in abeyance together with the
justification for their countinued retention or otherwise.
vi) Full details of supernumerary/shadow/deputation/special deputation reserve posts and
the necessity for their retention.
vii) Staff position statements in Forms 14 and 15 of the Comptroller and Auditor General
of Indias Manual of Standing Orders (Administrative) Volume.I showing the total
staff provided in the current years budget, additional posts proposed for creation
during the year and the total requirements for the succeeding year.
viii) A brief note indicating the availability of qualified persons and how the additional
posts proposed for inclusion in the budget/revised estimates are proposed to be filled
up during the year.
As the posts of Section Officers are based on the number of posts of Auditors,
man-hour statistics for posts of Section Officers need not be submitted. The Administration
Section while consolidating the man-hour statistics, will work out the total number of posts of
Section Officers for the entire office. In doing so, the yardstick laid down in Comptroller and
Auditor Generals letter No.2484-RAI/8-3/64 dated 26
th
August, 1964 has to be applied.
However, if additional posts of Section Officers/Asstt. Audit Officers are required based on
separate norms for inspection, Review of contracts and other items of original work to be
done by Section Officer/Asstt. Audit Officer, justification supported by detailed statistics
should be furnished by the concerned section to the Administration for consolidation.
403. Creation of Posts: All proposals for additional establishment should be scrutinised
personally by the Head of the Office. Except in most exceptional and urgent cases, no
proposals for additional staff or expenditure will be forwarded to the Comptroller and
Auditor General during the first six months of the financial year, unless it has been
specifically provided for in the Budget Estimates or the extra cost can be definitely met from
107
savings within the budget provision of the office. In that case, it should be clearly stated that
the cost involved will be met from savings in the budget. After the first six months of the
financial year, proposals may be made if the expenditure is unavoidable. In making these
proposals, it must be clearly explained why the provision could not be made in the Budget
Estimate and why the expenditure cannot be postponed.
404. Sanctions: All sanctions relating to gazetted posts are accorded by the Comptroller and
Auditor General. The Principal Director of Audit is empowered to accord sanction for the
creation of posts in Group C grade which have already been approved unconditionally by
the Comptroller and Auditor General for creation during the next year and have been
included in the Budget. As provision for such posts will be made only for four months, the
delegated powers are to be exercised within these financial limits.
(Comptroller and Auditor Generals letters No.1267-BRS/60-69 dated
12.5.1970 and No.1269-BRS/60-69 dated 13.5.1970).
Sanction for the creation of new temporary posts of Group D is also
accorded by the Principal Director of Audit.
The annual review for conversion of temporary posts into permanent posts
may be conducted in the first week of J uly each year.
(Comptroller and Auditor Generals letter No.1224-N.III/64-82/IV dated
28.4.1983).
Sanction for the conversion of temporary posts of Group C and D into
permanent ones, is accorded by the Principal Director of Audit, subject to the following
conditions:
1. The posts are required for the work of a permanent nature and have been in existence
for a period of not less than three years.
2. 90% of these temporary posts under each category upto Section Officers level may
be converted into permanent posts.
3. In case the calculation of posts at 90% result in fraction of post, the formula to be
applied is that one half of more than half should be taken as one and less than half
should be ignored.
Where the total number of posts which otherwise qualify for conversion into
permanent posts exceed 90%, then the posts upto 90% may be converted into permanent
posts by the Principal Director of Audit and proposals for the posts exceeding 90% may be
sent to the BRS Section of Comptroller and Auditor Generals office for seeking approval to
the conversion of temporary posts into permanent ones.
The Principal Director of Audit is empowered to sanction continuance of
temporary posts upto that of Section Officers and the creation of such posts on a temporary
basis for seasonal work and for temporary work of an emergency nature subject to the
following conditions.
A. Conditions for the continuance of the posts:
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1. That all the circumstances justifying the original sanction by the Comptroller and
Auditor General continue to exist.
2. That funds have either been provided in the budget/revised estimates or can be found
by valid reappropriation from within the sanctioned budget allotment; and
3. That a report will be submitted to the Comptroller and Auditor General of having
extended the posts, with brief reasons for such extension.
B. Conditions for the creation of Temporary Posts for seasonal/emergent work of a
temporary nature:
1. That all the instructions issued by competent authorities regulating staff composition
and standards of work are strictly observed.
2. That funds to meet the cost of the temporary posts can be found by valid
appropriation or reappropriation from within the sanctioned budget allotment and that
no expenditure is involved in future years.
Note: In respect of seasonal temporary posts that may be created by the Principal Director of
Audit, there should be specific budget provision while for temporary posts required
for emergent work it would be sufficient if funds can be found by valid appropriation
or reappropriation.
A half-yearly report showing the sanctions issued in exercise of these powers
should be submitted to the Comptroller and Auditor General in September and March every
year (Nil report need not be furnished).
C. Creation/Continuance of posts required for clearance of arrears: Sanction of the
Comptroller and Auditor General should be obtained for the continuance or creation of posts
required for clearance of arrears.
21.9.1961 and Ministry of Finances (Government of India) letter No.F.20(7)-EG.I/61 dated
5.9.1961).
405. Register of Sanctions: All sanctions for permanent and temporary posts should be
recorded in a register, exhibiting therein permanent and temporary posts separately. The
register should contain detailed information about the posts, date of sanction, purpose for
which sanctioned etc. The entries in the register should be attested by the Audit Officer/Sr.
Audit Officer (Administration).
406. Sanctioned strength: A statement showing the sanctioned strength and staff in position
as on first of every month and another showing the additional regular temporary posts
sanctioned by the Principal Director of Audit under his powers as on the last day of the
preceding month should be sent to the Comptroller and Auditor General so as to reach him on
10
th
of every month.
407. Recruitment of Auditors, Clerk/Typists and Stenographers: The recruitment of staff
in the above cadres in this office is done through Staff Selection Commission, Chennai and
Bangalore(in respect of vacancies falling in Karnataka region). The requisitions for the
vacancies proposed to be filled in may be sent to Staff Selection Commission,
109
Chennai/Bangalore, as the case may be, according to the periodicity prescribed. The
requisition should clearly indicate the requirements both under General and Reserved
categories. A note may be kept in the Calendar of Returns maintained in the Administration
Section to ensure the timely despatch of the requisition to the Staff Selection Commission.
The list of persons recommended for appointment along with the dossiers of
each person in original and copies of various certificates submitted by the candidates to the
Staff Selection Commission is furnished by the Staff Selection Commission in response to
the requisitions placed.
On receipt of the dossiers from the Staff Selection Commission, action should
be taken to check the original certificates of the candidates regarding their age, educational
qualifications, claim regarding membership of SC/ST or an Ex-servicemen, Physically
handicapped person etc. and to issue offers of appointment. If some of the candidates do not
respond to the offers of appointment sent to them, the vacancies thus remained unfilled may
be included in the next requisition to be sent to the Staff Selection Commission. An
intimation may also be sent to the Staff Selection Commission about the persons who did not
respond to the offers made, returning the dossiers of such candidates to the Commission.
The candidates should be medically examined before they are appointed.
408. Recruitment of Group D: For filling up of vacancies in Group D cadre, requisition
should be sent to the local Employment Exchange, in the prescribed format, keeping in view
the extant instructions.
Minimum educational qualification for recruitment to Group D posts(Peons)
is a pass in the 8
th
Standard or equivalent examination. The possession of the minimum
educational qualification of 5
th
standard is desirable for recruitment of Sweepers, Farashas,
Chowkidars etc.
Applications sponsored by the Employment Exchanges and those who are
already working as contingency paid labour in the office, provided they are registered with
the Employment Exchange and possess the requisite qualifications for recruitment to the
Group D cadre should only be considered for appointment.
(Authority: (1) Comptroller and Auditor Generals letter No.3193-NGE.III/52-
83 dated 16.1.1984 (Page 44 of Au/A/VI/2/Vol.III/Orders., (2) Comptroller and Auditor
Generals letter No.4561-NGE.III/34-86/Vol.I-KW.3 dated 30.12.1987 (Page 104 of
Au/A/Confdl/16/Orders)).
409. Relaxation of age limit: The upper age limit for recruitment is 27 years for Group C
and 25 years for Group D staff. The upper age limit may be relaxed upto 3 years in the case
of OBC candidates and five years in the case of Scheduled Caste/Scheduled Tribe candidates.
(Page 247 of Au/A/16/O/Vol.II, Page 60 of Au/A/16/O/Vol.III, Page 121 of
Establishment and Administration Manual, 2000 Edition)
The upper age limit in respect of persons who are within the prescribed age
limit and placed in the panel may be relaxed upto one year by the appointing authority for
their appointment (Para 6.2.5 and 8.2, Manual of Standing Orders (A) Vol.I). Relaxation
of age limit requiring Comptroller and Auditor Generals approval should be referred to him.
110
410. Extension of time limit for joining duty for new recruits: Principal Director of Audit
is empowered to grant extension of time to the extent indicated below:-
(i) Without any limit where the delay is due to non-completion of medical formalities in
respect of the candidate himself. In such cases, the panel seniority will remain intact;
(ii) In all other cases, extension upto a maximum period of two months beyond the last
date indicated in the offer of appointment can be granted. Seniority will be fixed with
reference to the date of appointment of the candidate.
(Para 6.2.10 of Manual of Standing Orders(Admn) Vol.I)
411. Appointments on Compassionate Grounds: Appointments in Group C & D Cadres
of dependents of Government servants who die in harness (while in service including death
by suicide) or who retire on medical grounds, will be considered by the Heads of
Departments based on the following criteria:-
a) When a Government servant, appointed on regular basis, dies in harness or retires on
medical grounds, leaving his family in penury and without any means of livelihood and
in the event of there being no other earning member in the family.
b) The appointment on compassionate grounds of a spouse/son/daughter/brother or sister
(in the case of unmarried Government servant) of a Government servant will be
considered even when there is an earning member in the family of the deceased
Government servant, if the Principal Director of Audit is satisfied that the grant of
concession is justified having regard to the number of dependents, assets and liabilities
left by the Government servant, income of the earning member etc.
The concession of compassionate appointment in the case of Government
servant retired on medical grounds will not, however, be allowed in cases where the
Government servant has retired after attaining the age of 55 years for Group C staff and 57
years for Group D staff.
The appointment of spouse/son/daughter etc. of the deceased Government
servant could be considered by relaxing the upper age limit wherever found to be necessary.
The lower age limit shall, however, in no case be relaxed below 18 years of age.
In the matter of exemption from the requirement of passing the typing test,
those appointed on compassionate grounds to the post of Clerk/Typist will be governed by
the general orders issued in this behalf.
In the case of appointment of widows of deceased Government servants as
peons, they will be exempted from the requirement of the educational qualifications provided
the duties of the post can be satisfactorily performed by her without possessing such
educational qualifications. She will be allowed to continue in service even after remarriage.
Compassionate appointments will be made upto a maximum of 5% of
vacancies falling under direct recruitment quota in Group C & D cadres and will be
adjusted in the recruitment roster against the appropriate category.
A person appointed on compassionate grounds should give an undertaking in
writing that he/she will maintain properly the other family members who were dependent on
111
the Government servant in question and in case it is proved subsequently that the family
members are being neglected or are not being maintained properly by him/her, the
appointment may be terminated forthwith.
Cases of missing Government servants are also covered under the scheme for
compassionate appointment subject to the following conditions:-
A request for compassionate appointment can be considered only after a lapse
of atleast 2 years from the date from which the Government Servant has been missing,
provided that
(i) FIR to this effect has been lodged with the Police,
(ii) the missing person is not traceable, and
(iii) the competent authority feels that the case is genuine.
(Authority: Dept. of Personnel & Training O.M. No.14014/6/94 Estt(D)
dt.9.10.1998 received under CAGs Lr.No. 678/N(APP)/18-99/Vol.V dt.14.6.1999).
412. Recruitment against Sports Quota: Appointments of meritorious sportsmen can be
made by the Principal Director of Audit to any post in Group C or Group D as per the
extant orders of Comptroller and Auditor General of India.
Recruitment against vacancies reserved for sports quota should be made only
after calling for applications from eligible candidates inserting advertisements in the leading
Newspapers and Employment News.
Clerk/Typists appointed against sports quota would not earn any increment nor
become eligible for confirmation and promotion, until he qualifies in the requisite type test.
Failure to qualify in the prescribed test will result in adverse consequences as laid down in
CAGs Lr.No.301-N.2/46-87 dated 1.4.1987.
413. Offer of appointment and appointment orders: Before appointment, the candidates
are required to submit the following documents with the letter of acceptance of offer of
appointment.
1. Certificate of character in the prescribed form from the Head of the Educational
Institution last attended or from a Gazetted Officer duly attested by a District
Magistrate, Sub-divisional Magistrate or Stipendiary First Class Magistrate. This
certificate should have reference to the 2 years immediately preceding.
2. Attestation form, in the prescribed form duly completed.
3. SC/ST and OBC certificate from a Magistrate/Tahsildar/Sub-Divisional Officer (In
cases of SC/ST and OBC candidates only).
4. Declaration indicating whether he/she has more than one wife/husband living.
5. No objection certificate from his/her employer and release order from his/her
employer accepting his/her resignation from that service (In cases of employed
persons only).
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6. Displaced person certificate from a Gazetted Officer of the Central Government etc.
(In cases of displaced persons).
414. Verification of Identity: The identity of the candidate is verified at the time of
appointment by comparison of the photograph affixed on the attestation form and the
signature in the joining report with that on the original application and other records received
from Staff Selection Commission.
437. Promotion of Auditors as Senior Auditors: Auditors in the Grade of Rs.4000-100-
6000 who have completed 3 years of regular service in the grade as on 1
st
October and have
passed the Departmental Examination for Auditors will be eligible for promotion as
Sr.Auditors.
(Comptroller and Auditor Generals letter No.718-N.2/41-84 dated 23.7.1984)
438. Promotion of Clerk/Typists as Auditors: The posts in the Auditors cadre shall be
filled as follows:
a) 40% of posts by promotion of Clerks with 5 years regular service in the grade on seniority
basis subject to rejection of unfit; and
b) 10% of posts by promotion from the following:
(ii) Clerks on passing Part I of S.O.G.E.
(iii) Graduate clerks with 3 years regular service in the grade on passing the
Departmental Examination for Auditors; and
(iv) Graduate Group D officials with 3 years regular service in the grade on passing
(Authority: Amendment of Recruitment Rules received vide C&AGs letter
No.72-NGE(App)/40-99 dt.31.5.2000 - Page 78 of AuA/16/O/Vol.III)
Seniority of Clerk/Typist transferred from other offices at their own request
will be the gradation list seniority for the purpose of promotion as Auditor.
The promoted Clerk/Typist will have to pass the Departmental Examination
for Auditors within two years of his promotion but if an examination is to be held within 90
days of the promotion, he may not take it, but may instead take the six consecutive
examinations held immediately thereafter. If he does not pass the examination within the
number of chances allowed, he will be reverted and the seniority again for promotion is
regulated from the date of reversion.
113
Clerk/Typists who came out successful in the Section Officers Grade Part I
Examination may be appointed as Auditors against the direct recruitment vacancies
immediately available thereafter. For this purpose, the requirements of age and minimum
educational qualifications prescribed for appointment of Auditors may be deemed to have
been relaxed in their favour. On their appointment as Auditors, such Clerk/Typists will be
exempted from passing the Departmental Examination and their pay will be fixed under the
normal rules of pay fixation.
(Comptroller and Auditor Generals letter No.2165-NGE.III/54-68 dated
30.9.1969 - Page No.115 of file No.AuA/Con/15).
439. Promotion of Group D employees: (i) Promotions of Peons to the cadre of Daftry are
made on the basis of seniority-cum-fitness only. Peons with a minimum of 3 years of regular
service in the grade will be eligible for consideration for promotion as Daftry/J amadar.
17.7.1967 of AuA/Con/15, No.1452-N.2/39-85 dated 18.12.1985 of AuA/V/46/Orders and
No.197-N.2/49-87 dated 27.2.1987)
(ii) Any Group D employee with minimum educational qualification of 8
th

Standard and 7 years of service as regular Group D will be eligible for appointment as
Record Keeper (Group C). The appointment will be on seniority-cum-fitness basis.
(Comptroller and Auditor Generals letter No.3945-N.2/74-83 dated
16.12.1983 and 105-N.III/1-82 dated 4.2.1988)
25% of the regular posts of the Record Keepers will be in functional Selection
Grade (Rs.3050-75-3950-80-4590) and Record Keepers with a minimum of 3 years of regular
service will be eligible for promotion to this grade on seniority-cum-fitness basis.
(C&AGs letter No.105-N-2/1-88 dated 4.2.1988 and No.261-N.2/83-90 dated
27.7.1991 - Pages 24 and 35 of AuA/V/66/O/Vol.I)
(iii) 10% of the vacancies in the cadre of Clerk/Typists occurring in a
recruitment year shall be filled according to the 20-point roster by the Matriculate Group D
employees who have completed 3 years of service as Group D and passed the Limited
Departmental Competitive Examination.
(Comptroller and Auditor Generals letter No.E.2-OSD(P)/73 dated
18.12.1973 - AuA/V/46/Orders)
Matriculate Group D employees who have completed 3 years regular service
on the 1
st
day of the month in which the examination is held are eligible for promotion
against 5% vacancies in the cadre of Clerk/Typists on seniority basis. The promotee
Matriculate Group D will have to pass the requisite type test. The conditions prescribed in
Para 435 (Official Manual) will apply mutatis mutandis in case the candidates who fail to
pass the type test.
{(1) Comptroller and Auditor Generals letter No.290-N.2/46-87 dated
27.3.1987 - Page 290 of AuA/V/46/Ord. Vol.I); (2) CAGs letter No.242-Exam/161-83/Vol.II
dt.23.4.87; (3) CAGs letter No.301-N.2/46-87 dt.1.4.87 (Page.294)}
114
(iv) Clerk/Typists including those promoted from Group D cadre are not
allowed increment unless they pass the requisite type test in English.
(Please see Para 436(iii) - Office Manual)
440. Officiating promotions in short term vacancies: Short term vacancies arising may be
filled in the normal manner in cases where the duration of the vacancy exceeds 30 days. This
limit will apply irrespective of whether it is a single vacancy or part of a chain of vacancies.
Officiating promotions in vacancies of 30 days duration or less may be made
only in very exceptional circumstances with the prior personal approval of the Head of
Department.
(Ministry of Finance O.M.No.F.10(22)-E(Coord)/74 dated 18.6.1975 Page
144 of AuA/VI/2 Vol.II/Orders)
441. Seniority: (1) The inter-se seniority of direct recruits will be regulated in accordance
with the position assigned to them by Staff Selection Commission. If a new recruit does not
join within the prescribed period, the seniority of such candidates will be reckoned on joining
duty as mentioned in Para 410(Office Manual).
(2) The seniority of Auditors who are reverted as Clerk/Typists on account of
their failure to pass the Departmental Examination and who are subsequently promoted as
Auditors will be fixed with reference to the date of their re-promotion to the Auditors cadre.
No weightage for past service in the Auditors cadre will be given to such Auditors for the
purpose of seniority.
(3) The seniority of the persons promoted from the Clerk/Typists cadre to the
Auditors cadre should be determined with reference to the date of promotion. However, in
cases of advance promotions, the seniority will be determined as if they had been promoted
against the appropriate points in the register.
(Comptroller and Auditor Generals letter No.D.O.F.3-OSD(P)73 dated
5.3.72 and No.776.F.3.OSD(P)/73 dated 23.4.73 (48) of AuA/V/46/Order)
(4) When promoted Clerk/Typists who fail to pass Departmental Examination
are reverted, their total service as Auditor and Clerk/Typist will be counted for seniority of
Clerk/Typists.
5.9.1968)
(5) In the case of mutual transfers, both the staff transferred will be assigned
seniority for the lower of the two lengths of service. In the case of unilateral transfer, the
staff concerned will rank as juniormost on the date of joining the new office.
443. Transfers: The staff are liable for transfer to any of the units including the Branch
offices.
No member of the staff, including the Audit Officer/Sr. Audit Officer should
normally be kept in the same group beyond five years. Retention in a particular group
115
beyond five years will be allowed only in exceptional circumstances and with the specific
orders of the Head of Department.
(Comptroller and Auditor Generals letter No.215-PC(COORD)/3-87 dated
17.11.1987 Page 211 of AuA/V/55/Vol.II).
By the due date prescribed, the sections should furnish an annual return to
Administration section indicating the section and the periods during which the staff have
worked during the year under report. A register called Staff Movement Register showing
all the particulars regarding movement of staff should be maintained in the Administration
Section.
438. Preparation and registration of Bills: All bills received in the office from the staff or
from outsiders should be entered in chronological order in the Register of Bills to be
maintained separately for different categories of bills such as Travelling Allowance Bills,
bills for Medical Reimbursement, Reimbursement of Tuition Fees. At the time of passing the
bills each entry in the register of bills should be attested by the Branch Officer. Remarks
regarding passing of the bills or otherwise should also be given in the remarks column of this
Register. A progress report showing the details of the bills outstanding for more than a week
should be put up to the Branch Officer on every Monday.
459. Abstract of Attendance: The Branch/Divisional Audit Officers are required to send to
the Administration section by the 16
th
of each month abstract of attendance of all the Asstt.
Audit Officers and non-gazetted staff in that Branch/Division for the period from the 15
th
of
previous month to the 14
th
of the current month. The abstract of attendance forms the basis
for the preparation of pay bills.
460. (a) Salary bills of Gazetted and Non-gazetted officers: The preparation of all the pay
bills of officers and staff (Group B, C & D) of this office has been taken over on the
computer by the EDP Centre of South Central Railway with effect from 01.04.1988, using
the same programme followed by the Railway Administration. Bills are being prepared for
Gazetted and Non-gazetted officers for cash and cheque system separately. Bills in respect of
all the units are passed and payment arranged by the Financial Adviser and Chief Accounts
Officer, South Central Railway. The procedure to be followed is detailed in P.O.O. No.113
dated 19.12.1988.
(b) System of Payment to Group A Officers: The pay and allowances of Group A
Officers of this office are drawn by this office in the same manner as for staff and Group B
Officers and sent to the Pay and Accounts Officer(Audit), Office of the Accountant General-
II, Andhra Pradesh, Hyderabad.
461. Signing of Pay Bills: Pay Bills after check by the Section Officer/Asstt. Audit Officer
should be submitted to the Audit Officer/Sr.Audit Officer(Bills) nominated for the purpose
with the accompaniments for approval and signature. The specimen signature of the officer
authorised to sign bills will be sent to the Financial Adviser and Chief Accounts Officer.
Whenever there is a change in nomination, the specimen signature of the officer should be
sent to the Financial Adviser and Chief Accounts Officer cancelling the authority delegated
to the outgoing officer.
116
462. Increment Register: All increments accrue as a matter of course in terms of
Fundamental Rules 26 unless withheld as a disciplinary measure.
The Register of Increments will be maintained in Form-SY.299. In the first
week of every month, cases of all staff whose normal increments fall in that month should be
reviewed taking into account all factors which may have the effect of postponing the
increment, and the actual date of next increment and the rate of pay after such date worked
out and noted in the respective columns against the names of the staff concerned. The
Increment Register should be put up through the Audit Officer/Sr.Audit Officer (Bills) to the
Deputy Director/Director incharge of Administration by the 10
th
of every month.
Newly recruited clerk/typists (on sports quota and compassionate grounds)
including those promoted from Group D cadre will not be granted increment unless they
pass the prescribed type test.
(Para 290 of Manual of Standing Orders(Admn.) Vol.I and Para 99 of
Railway Audit Manual).
464. Income Tax: The amount of income tax to be deducted monthly from each member of
the staff whose income is taxable should be calculated twice in a year i.e. first in August
(approximately) and finally in February. In the Pay bill of February, the final adjustment of
the income tax recovery will be made taking into account the total amount recovered till then
on approximate basis. Particulars such as amount of Life Insurance premia, amount of Postal
Cumulative Time Deposit etc. should be called for from the staff for making the final
assessment.
At the close of the financial year, a statement of income tax deducted at source
for the financial year should be made out in triplicate from the office copies of the pay bill
register. Two copies of the statements should be submitted to the Financial Adviser and
Chief Accounts Officer.
(Ministry of Home Affairs O.M. No.24/10/64-AB dated 26.3.65)
465. Recovery of rent for Railway Quarters: Rent, electricity charges, and water charges
are required to be recovered from the staff who are in occupation of Railway quarters at the
same rate as are applicable to the railway staff. A rent roll in the form prescribed should
accompany the Pay Bill.
466. Recovery Register: Separate Recovery Registers should be maintained for each
category of recovery. Only one register should be maintained for the whole office in respect
of each category of recovery. The following are the recoveries for which the registers are
maintained.
1. Advance of pay on transfer.
2. General Provident Fund Advance.
3. Advance for conveyances.
4. Festival Advance.
5. Fan Advance.
6. House Building Advance.
7. Loans due to Co-operative Credit Society.
117
Entries in respect of items (1) to (6) are made from office orders/sanctions and
entries in respect of item (7) are made from the debit schedule received from the Co-
operative Credit Society. Actual recoveries effected through the pay bills should also be
noted in the register monthly under the various headings and attested by the Section
Officer/Asstt. Audit Officer.
467. Supplementary Bills: The pay and allowances of any member of the staff (when not
drawn through the main pay bill) will be drawn through a supplementary bill. This will be
prepared in the same manner as that of the main pay bills.
468. Arrear Bill: Arrears of pay, allowances or leave salary etc. if more than three months
old, will be drawn through a separate pay bill giving indication to the main pay bill in which
it was not drawn. A note of the arrear bill should be made in the office copy of the bills for
the period to which the arrears pertain duly attested by the Section Officer/Asstt. Audit
Officer(Bills) to obviate the arrears being claimed for the second time. The certificates
mentioned in Para 276 of the Treasury Rules Vol.I should be recorded on the arrear bill.
469. Last Pay Certificate: Last Pay Certificate is required to be prepared only when the staff
are transferred out of this office i.e. to the jurisdiction of another Accounts Office.
470. Disbursement of Pay and Allowances: Necessary endorsement should be made on the
pay bill indicating the office where the payment is to be made on the pay day. The Audit
Officer/Sr.Audit Officer(Administration)/Branch Officer should nominate a Senior Auditor
for witnessing payment on the pay day. For payments on other than pay day, the procedure
laid down by the Financial Adviser and Chief Accounts Officer from time to time should be
followed. In terms of Para 70 of Railway Audit Manual, audit of expenditure relating to this
office is done by the Principal Director of Audit, Eastern Railway. Copies of all sanctions
and office orders should invariably be endorsed to the Audit Officer. Comptroller and
Auditor General has fixed 25
th
of every month as the due date for receipt of paid vouchers for
the previous month by the Audit Officers (CAGs letter No.1149-TAI/239-66 dated
20.4.1967). Financial Adviser and Chief Accounts Officer, South Central Railway has been
requested to adhere to the date fixed by the Comptroller and Auditor General strictly vide this
office letter No.AuA/XI/1/O dated 4.5.1970.
472. Maintenance and verification of Service Registers and Leave Accounts: The
maintenance of service registers and leave accounts of the Group A and Group B officers
and non-gazetted staff of this office is the responsibility of Administration Section. The
posting of all office orders concerning the official events of an employee in his service
register should be done as and when they occur. Section Officers/Asstt. Audit Officers are
authorised to attest entries in the service book of non-gazetted staff other than those on the
first page of the service book and annual verification of service. These powers will not,
however, be exercised by them in respect of entries in their own service register. The Audit
Officer/Sr.Audit Officer (Admn.) who is delegated with powers to attest entries on the first
page of the service register, should verify 10% of the other entries in the service books and
initial them in token of their having done so.
The Audit Officer/Sr.Audit Officer (Admn.) is delegated with powers to attest
the entries in the Service Register and the leave account of all the gazetted officers and these
entries should be verified to the extent of 10% by the Deputy Director/Director (Admn.)
every year.
118
(Ministry of Finance letter No.3(3)-E-G.I/67 dated 20.4.1967 received under
CAGs letter No.1384-Tech.Admn.I/698.66 dated 3
rd
May, 1967 and CAGs letter No.2888-
Tech.Admn.I/51-60 Volume III dated 23
rd
August, 1968).
The service of each pensionable employee must be verified from the pay bills
every year and a certificate regarding such verification recorded in the service register soon
after the close of the financial year. A report to the Comptroller and Auditor General that
such certificates have been recorded should be sent by 10
th
J uly.
Service registers of staff who may be permanently transferred from other
Audit Offices should be reviewed on receipt to see that the certificate of verification of
pensionable service till the end of the month preceding their transfer has been recorded and
attested.
(Soon after an Officer is confirmed in a Gazetted post, action should be taken
to arrange for the non-gazetted portion, of his service being verified by the Principal Director
of Audit, Eastern Railway).
All service books and leave accounts of staff should be thoroughly checked by
Internal Audit Section and that of the staff of the Internal Audit section should be checked by
a Section Officer/Asstt. Audit Officer nominated by the Deputy Director/Director, once a
year.
The service books should be verified and attested by the staff concerned once
every year and an annual certificate to this effect submitted to the Comptroller and Auditor
General by 30
th
September every year. A programme should be drawn up for the verification
of the service registers of the staff, in batches early in August.
(CAGs letter No.2515-NGE.I/68-67 dated 20.11.1967 and SR.197 to 203)
473. Office Order Books: Separate Office Order Books should be maintained for Gazetted
Officers and Non-Gazetted Officers in which the Office Orders are pasted in chronological
order.
476. Medical Attendance Rules: Compilation of Central Service (Medical Attendance)
Rules, 1944 and orders issued by the Government of India from time to time should be
referred to in dealing with the claims for reimbursement of medical expenses.
Audit Officer/Sr.Audit Officer (Bills) is delegated with powers to countersign
the Medical reimbursement claims of Non-gazetted staff subject to the following conditions.
(i) That the bills for more than Rs.200/- requires the counter signature of Deputy
Director/Director in charge of Administration.
(ii) Cases of the Government servants whose progressive total of bills exceeds Rs.1,000/-
per annum should be brought to the notice of Deputy Director/Director in charge of
Administration..
(iii) Reports of Internal Audit and replies thereto should be submitted to Deputy
Director/Director in charge of Administration, for information.
119
All bills for charges on account of medical attendance and treatment should be
countersigned by the Controlling Officers who are authorised to countersign travelling
allowance bills of the government servant concerned.
A Register of Medical Claims should be maintained in the Bills Section allotting separate
pages for the various employees. The register should be submitted to the Audit
Officer/Sr.Audit Officer(Bills)/ Deputy Director/Director fortnightly showing the position of
the claims received but not passed within a week, giving also brief reasons for the delay in
disposal of the claims.479. Hostel Subsidy: A Government servant shall be eligible to the
grant of a subsidy at the rate of Rs.300/- per month per child if he is obliged to keep his
children in the Hostel of a residential school away from the station at which he is posted
and/or residing, because of his transfer.
This shall be payable upto Higher Secondary and Senior Secondary stage and
shall not be admissible in respect of a child for whom Childrens Education Allowance is
drawn by a Government servant.
A certificate as per rules should be furnished at the time of preferring his
initial claim and thereafter in the months of March and J uly every year.
Estt(Allow) dt.31.5.89, No.12011/2/83/Estt(Allow) dt.27.12.89, No.12011/2/88/Estt(Allow)
dt.3.8.90 and O.M.No.12013/1/90-Estt(Allow) dt.8.5.92)
481. Cycle Advance: Cycle advance is granted to the non-gazetted employees whose pay
does not exceed Rs.5,000/- p.m. The exact date of receipt of the advance by the employee
should be intimated to the Administration Section immediately after the drawal. The advance
is recoverable in not exceeding 30 instalments. A second advance for the purchase of a
bicycle will not be granted to an employee until the completion of three years since the
drawal of the previous advance.
482. Table Fan Advance: Group D staff who apply for fan advance should submit the
electricity bill (receipts) and also produce a certificate in the following form:
I certify that:
i. The portion which I occupy is electrified.
ii. A plug point exists for the use of a table fan.
iii. I do not have a fan in my house, and
iv. Sri/Smt._____________________ in whose name the electricity bill has been
made out is my house owner/father/wife.
The amount of advance which may be granted should not exceed Rs.1,000/- or
the anticipated price of the Table Fan, whichever is less.
A second advance for the purchase of a fan is not granted within ten years of
the first one. To ensure this, a record of the grant of the advance should be made in the
service register of the employee.
(Para 221 A to D of G.F.Rs.)
120
483. Passes/PTOs: Privilege Passes/PTOs required by the Officers and staff of
Administration section and those working in the sections located in the Main Office annexe
building will be issued by the Asstt. Audit Officer (Administration Section). Other kinds of
passes required by officers and staff working in Divisions and sections located at
Headquarters, Secunderabad, will be issued by the Audit Officer (Administration) (See Para
235).
484. Grant-in-aid to Recreation Club: Grant-in-aid for provision of amenities or
recreational or welfare facilities to the staff of the Central Government Departments will be
regulated in the manner indicated in Ministry of Home Affairs Office Memorandum
No.2/167/59-Welfare dated 10
th
March, 1961, as amended in Office Memorandums
No.24/2/62-Welfare dated 12.10.1962 and Memorandum No.2/8/67 - Welfare dated
11.5.1967 and Ministry of Finance (Expenditure) O.M. No.F(14)(2)-E-II(A)/89 dt.19.9.89.
Proposals for annual grant-in-aid should be formulated in accordance with the orders issued
by the Comptroller and Auditor General of India from time to time.
The Recreational Clubs should submit their accounts to the Principal Director
of Audit immediately after the close of the financial year in the form given in the Annexure
to Comptroller and Auditor Generals letter No.890-NGE/III/114-63 dated 23.4.1963 (duly
audited by their Internal Auditor).
The accounts should be accompanied by all vouchers. Such of the items of
expenditure which are not supported by vouchers should be certified by the
President/Secretary/Treasurer of the club to the effect that the expenditure was actually
incurred and it was not possible to get a receipt.
The accounts of the clubs should then be examined by an auditor nominated
by the Principal Director of Audit and signed by the auditor concerned in the prescribed
proforma.
Grant-in-aid for the first quarter of the year will be released in the beginning
of each financial year. The balance will be released only after the submission of the accounts
for the previous year.
An illustrative list of items on which expenditure can be incurred out of the
grant-in-aid is given in Ministry of Home Affairs O.M. No.2/14-61-Welfare dated 7.12.1961.
The grants are intended only for provision of amenities or of recreational or welfare facilities
and would not cover within their scope any compassionate objects such as death benefits.
No expenditure should be incurred out of grant-in-aid for organization of
excursion trips.
Principal Director of Audit is empowered to sanction recurring grants-in-aid
for provision of amenities to the recreation clubs on the terms and conditions stipulated in the
Ministry of Home Affairs O.M. No.2/167/59-Welfare dated 10.3.1961 subject to budget
provision having been made. Copies of the sanctions issued by the Principal Director of
Audit should be endorsed to the Comptroller and Auditor General. The expenditure on
grants-in-aid is chargeable to the head 216-Audit-grants-in-aid.
(Rule 153 - G.F.Rs. as amended from time to time).
121
485. Audit Bulletin: The Audit Bulletin is issued by the Comptroller and Auditor General
quarterly. The material for incorporation in the Audit Bulletin is collected from
sections/divisions and a report furnished to Comptroller and Auditor General on the 10
th
of
the month following each quarter. The number of copies required should be intimated by the
15
th
of April every year.
122
CHAPTER - IV
ADMINISTRATION
Para 401. This section deals with the personnel and administrative matters relating to the
office which are generally indicated below:
(a) Administration:
(i) Appointment, transfers, promotions, deputations, grant of leave and grant of advances
etc. of staff upto Audit Officers/Sr.Audit Officers grade.
(ii) Recruitment of Group D and casual labour.
(iii) Office accommodation.
(iv) Section Officers Grade Examination and other departmental examinations.
(v) Maintenance of Service Registers and Leave accounts.
(vi) Preparation of Pension Papers.
(vii) Maintenance of casual leave account of (a) staff of Administration Section and (b) all
Group D staff at Secunderabad.
(viii) Issue of Privilege Passes/PTOs, Duty cheque passes and maintenance of accounts
thereof of all the Group A & B officers, Group C and D officials of
Administration, Co-ordination, EDP, Reports, SAG and Inspection Headquarters
Sections. Issue of complimentary passes, school passes, card passes, transfer passes,
sports account passes etc. of all the officers and staff at Headquarters.
(ix) Procurement and upkeep of furniture and office machinery.
(x) Indenting and supply of Stationery and liveries.
(xi) Receipt and Despatch.
(xii) General Maintenance and Upkeep of Office Library.
(b) Bills:
(i) Settlement of personal claims of the members of staff, including officers.
(ii) Passing of miscellaneous bills.
(iii) Maintenance of Recovery Registers.
(c) Budget and Control over Expenditure:
(i) Preparation of temporary staff proposals, and Budget proposals.
(ii) Registers of expenditure and their reconciliation.
(iii) Submission of Control Statements and other returns to Comptroller and Auditor
General of India.
(iv) Appropriation Accounts relating to the accounts of this office.
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(d) Welfare and Caretaking: Welfare Assistant: To assist the Welfare Officer, a post of
Welfare Assistant is operated in the Administration Section. He is entrusted with the
following duties.
(a) Staff matters:
(i) Assisting the Welfare Officer in looking into the difficulties or grievances of members
of the staff and arranging for personal hearing, wherever possible.
(ii) Providing assistance to members of the staff who become suddenly ill or those who
are chronically ill. To assist staff members in securing accommodation facilities in
Hospital and to help, in case of need, families of persons on protracted tour.
(iii) Helping, where essential, the members of the staff in securing admission of their
children in schools, colleges and other educational institutions.
(iv) Assisting staff members in connection with staff welfare, such as Benevolent Fund
etc. as may be entrusted from time to time. Liaison with staff Benevolent Fund
Committee in providing financial help.
(v) Initiating action for providing immediate monetary relief to the members of the
bereaved family in case of death while in service.
(vi) Ensuring that payment of settlement dues of retiring officials etc. is effected promptly
by the day following the date of retirement by contacting the Accounts Officers
concerned and the pension payment orders are also issued expeditiously by the
Accounts Officers.
(vii) Attending to the complaints regarding the delays in the payment of dues to the
members of staff and ensure that such payments are effected promptly.
(viii) Assistance to staff members in arranging for procurement of life-saving drugs.
(ix) Helping the staff to obtain blood from blood banks in urgent need, promoting
donation of blood.
(x) To attend to representation of Group D personnel.
(b) House Keeping:
(i) Cleanliness of office premises and bath-rooms including adequate water supply as
also drinking water supply.
(ii) Neatness of work place and proper maintenance of furniture.
(iii) Removal/weeding and destruction of unwanted records and elimination of
congestion in sections.
(iv) Adequacy of light and ventilation in the offices.
(v) Arranging parking lots for cycle and scooters and ensuring their safety and protection
against sun and rain, to the extent possible.
(vi) To assist Administration in local purchases by obtaining quotations/tenders and
scrutinizing the same.
(vii) Supervision and maintenance of the garden.
(c) Care-Taking:
i. To ensure proper opening and closing of the office buildings.
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ii. Marking attendance of the Group D staff, their deployment, control and making
arrangements during the periods of their leave.
iii. To attend to the representations of Group D personnel regarding the supply of
uniforms and other aspects.
iv. Supervision of the work of maintenance of gardens by the Malis.
v. Maintenance of the duty rosters of Chowkidars and making arrangements for the work
when any of them is suddenly absent.
vi. Tight control over the day-to-day security arrangements, especially checking the
functioning of the Chowkidars outside office hours.
vii. To look after the cleanliness of the office as a whole.
viii. Inspection of sections from time to time and suggesting ways for improving the
facilities in the sections in regard to furniture, adequacy of space, provision of lighting
etc.
ix. To be in constant touch with the Signal and Telecommunications Department
regarding failure of telephones and the Electrical Department for failure of electricity
and replacement of defective fans and bulbs.
x. Maintenance and verification of dead stock items.
xi. Any other duty in connection with the upkeep of the office as entrusted to him from
time to time.
(d) Cultural and Recreational Activities:
(i) To act as liaison in conducting Inter-Audit/Central Government Employees Welfare
Coordination Committee Tournaments in various games arranged by the
IA&AD/CGEWCC.
(ii) To encourage players to participate in games.
(iii) Liaison with the Recreation Club.
(iv) To help in issuing notices regarding grant of permission to staff for leaving office
early to attend sports events and for closing of office as a mark of respect to deceased
employees, arranging for condolence meetings and despatch of condolence
resolutions to the families of the deceased.
(v) Any other work that may be entrusted by the Principal Director of Audit.
Para 402 Staff Proposals: The staff proposals should be sent to the Comptroller and Auditor
General of India by 25
th
J uly every year. To ensure the submission of the proposals by the
due date, various sections and Branch Offices should forward their proposals to the
Administration section, by 25
th
J une or by any other date prescribed by the Administration
Section together with the detailed statistical data, in triplicate. The justification for the
existing strength of additional staff required should be supported by data on the basis of
monthly average of work done in May, J uly, J anuary, February and March (excluding March
final and supplementary accounts) of the preceding financial year.
125
The following general instructions should be strictly adhered to in formulating
the proposals:
1. The prescribed standard time for each item of work has to be adopted.
2. Items for which no standards are fixed by the Comptroller and Auditor General of
India should be exhibited in a separate statement adopting adhoc standards.
3. The standard per auditor should be taken as 160 hours per month.
4. The man-hour statistics compiled by the Section Officer/Asstt. Audit Officer of the
section concerned should be got checked independently by another Section
Officer/Asstt. Audit Officer nominated for the purpose and reviewed by the Branch
Officer (Administration). The man-hour statistics for the whole office should be test
checked by Asstt. Audit Officer (Internal Audit). A certificate to the effect that the
statistical data prepared by the respective sections has been duly re-checked
independently by a Section Officer/Asstt. Audit Officer should be given in the letter
forwarding the staff proposals to Comptroller and Auditor General of India.
On receipt of the proposals supported by man-hours statistics from the
sections and Branch offices, the Administration Section should submit a note to the Principal
Director of Audit indicating the particulars of posts proposed for creation and continuance.
Where the increase or decrease in work load as compared with the previous year is not more
than 5%, detailed staff proposals need not be forwarded to Comptroller and Auditor General
of India. However, a certificate indicating that there is no reduction of staff based on work
load and as such the existing strength may be allowed to continue may be sent to Comptroller
and Auditor General of India. In case the increase in work load in a particular group or
groups justifies more staff (and the work load has increased by more than 5% as compared
with the previous year) proposals may be sent for sanction of additional staff for this
particular group or groups. In all such cases, reasons for variation by more than 5% as
compared with the work load during the previous 2 years may be given. Only the posts
approved by the Principal Director of Audit for creation and continuance should be included
in the staff proposals to be submitted to the Comptroller and Auditor General of India. The
proposals should be submitted in four parts.
Part I : Proposals based on the prescribed standard rates of work, taking the
group/section as a whole.
Part II : Proposals pertaining to various sections in respect of which work
standards/norms have not been prescribed.
Part III : Proposals for posts required for casual/seasonal items of work as well as those
pertaining to the continuance of the existing posts which have been sanctioned
on adhoc basis.
Part IV : Proposals for additional posts to cater to anticipated increase in work on the
basis of average increase in work during the preceding 3 years.
The following statements should also be furnished with the staff proposals:
i) A summary of the proposals in the form enclosed to Comptroller and Auditor General
of Indias office circular letter No.1766-BRS/185-78 dated 24
th
June, 1978.
126
ii) A statement showing the group/section-wise distribution of the regular sanctioned
strength (both permanent and temporary) other than casual posts as on 1
st
March.
iii) A statement of regular temporary posts for which provision is proposed to be made in
Revised Estimates and Budget Estimates in the form enclosed to Comptroller and
Auditor General of Indias circular letter No.1393-BRS/87-65 dated 29
th
June, 1965.
iv) A statement indicating clearly the additional posts proposed on work standards/norms
for the different groups/sections.
v) Full details of the existing permanent posts held in abeyance together with the
justification for their countinued retention or otherwise.
vi) Full details of supernumerary/shadow/deputation/special deputation reserve posts and
the necessity for their retention.
vii) Staff position statements in Forms 14 and 15 of the Comptroller and Auditor General
of Indias Manual of Standing Orders (Administrative) Volume.I showing the total
staff provided in the current years budget, additional posts proposed for creation
during the year and the total requirements for the succeeding year.
viii) A brief note indicating the availability of qualified persons and how the additional
posts proposed for inclusion in the budget/revised estimates are proposed to be filled
up during the year.
As the posts of Section Officers are based on the number of posts of Auditors,
man-hour statistics for posts of Section Officers need not be submitted. The Administration
Section while consolidating the man-hour statistics, will work out the total number of posts of
Section Officers for the entire office. In doing so, the yardstick laid down in Comptroller and
Auditor Generals letter No.2484-RAI/8-3/64 dated 26
th
August, 1964 has to be applied.
However, if additional posts of Section Officers/Asstt. Audit Officers are required based on
separate norms for inspection, Review of contracts and other items of original work to be
done by Section Officer/Asstt. Audit Officer, justification supported by detailed statistics
should be furnished by the concerned section to the Administration for consolidation.
Para 403 Creation of Posts: All proposals for additional establishment should be scrutinised
personally by the Head of the Office. Except in most exceptional and urgent cases, no
proposals for additional staff or expenditure will be forwarded to the Comptroller and
Auditor General during the first six months of the financial year, unless it has been
specifically provided for in the Budget Estimates or the extra cost can be definitely met from
savings within the budget provision of the office. In that case, it should be clearly stated that
the cost involved will be met from savings in the budget. After the first six months of the
financial year, proposals may be made if the expenditure is unavoidable. In making these
proposals, it must be clearly explained why the provision could not be made in the Budget
Estimate and why the expenditure cannot be postponed.
Para 404 Sanctions: All sanctions relating to gazetted posts are accorded by the Comptroller
and Auditor General. The Principal Director of Audit is empowered to accord sanction for
the creation of posts in Group C grade which have already been approved unconditionally
by the Comptroller and Auditor General for creation during the next year and have been
included in the Budget. As provision for such posts will be made only for four months, the
delegated powers are to be exercised within these financial limits.
127
(Comptroller and Auditor Generals letters No.1267-BRS/60-69 dated
12.5.1970 and No.1269-BRS/60-69 dated 13.5.1970).
Sanction for the creation of new temporary posts of Group D is also
accorded by the Principal Director of Audit.
The annual review for conversion of temporary posts into permanent posts
may be conducted in the first week of J uly each year.
(Comptroller and Auditor Generals letter No.1224-N.III/64-82/IV dated
28.4.1983).
Sanction for the conversion of temporary posts of Group C and D into
permanent ones, is accorded by the Principal Director of Audit, subject to the following
conditions:
1. The posts are required for the work of a permanent nature and have been in existence
for a period of not less than three years.
2. 90% of these temporary posts under each category upto Section Officers level may
be converted into permanent posts.
3. In case the calculation of posts at 90% result in fraction of post, the formula to be
applied is that one half of more than half should be taken as one and less than half
should be ignored.
Where the total number of posts which otherwise qualify for conversion into
permanent posts exceed 90%, then the posts upto 90% may be converted into permanent
posts by the Principal Director of Audit and proposals for the posts exceeding 90% may be
sent to the BRS Section of Comptroller and Auditor Generals office for seeking approval to
the conversion of temporary posts into permanent ones.
The Principal Director of Audit is empowered to sanction continuance of
temporary posts upto that of Section Officers and the creation of such posts on a temporary
basis for seasonal work and for temporary work of an emergency nature subject to the
following conditions.
A. Conditions for the continuance of the posts:
1. That all the circumstances justifying the original sanction by the Comptroller and
Auditor General continue to exist.
2. That funds have either been provided in the budget/revised estimates or can be found
by valid reappropriation from within the sanctioned budget allotment; and
3. That a report will be submitted to the Comptroller and Auditor General of having
extended the posts, with brief reasons for such extension.
B. Conditions for the creation of Temporary Posts for seasonal/emergent work of a
temporary nature:
1. That all the instructions issued by competent authorities regulating staff composition
and standards of work are strictly observed.
2. That funds to meet the cost of the temporary posts can be found by valid
appropriation or reappropriation from within the sanctioned budget allotment and that
no expenditure is involved in future years.
Note: In respect of seasonal temporary posts that may be created by the Principal Director of
Audit, there should be specific budget provision while for temporary posts required
128
for emergent work it would be sufficient if funds can be found by valid appropriation
or reappropriation.
A half-yearly report showing the sanctions issued in exercise of these powers
should be submitted to the Comptroller and Auditor General in September and March every
year (Nil report need not be furnished).
C. Creation/Continuance of posts required for clearance of arrears: Sanction of the
Comptroller and Auditor General should be obtained for the continuance or creation of posts
required for clearance of arrears.
21.9.1961 and Ministry of Finances (Government of India) letter No.F.20(7)-EG.I/61 dated
5.9.1961).
Para 405 Register of Sanctions: All sanctions for permanent and temporary posts should be
recorded in a register, exhibiting therein permanent and temporary posts separately. The
register should contain detailed information about the posts, date of sanction, purpose for
which sanctioned etc. The entries in the register should be attested by the Audit Officer/Sr.
Audit Officer (Administration).
Para 406 Sanctioned strength: A statement showing the sanctioned strength and staff in
position as on first of every month and another showing the additional regular temporary
posts sanctioned by the Principal Director of Audit under his powers as on the last day of the
preceding month should be sent to the Comptroller and Auditor General so as to reach him on
10
th
of every month.
Para 407 Recruitment of Auditors, Clerk/Typists and Stenographers: The recruitment of
staff in the above cadres in this office is done through Staff Selection Commission, Chennai
and Bangalore(in respect of vacancies falling in Karnataka region). The requisitions for the
vacancies proposed to be filled in may be sent to Staff Selection Commission,
Chennai/Bangalore, as the case may be, according to the periodicity prescribed. The
requisition should clearly indicate the requirements both under General and Reserved
categories. A note may be kept in the Calendar of Returns maintained in the Administration
Section to ensure the timely despatch of the requisition to the Staff Selection Commission.
The list of persons recommended for appointment along with the dossiers of
each person in original and copies of various certificates submitted by the candidates to the
Staff Selection Commission is furnished by the Staff Selection Commission in response to
the requisitions placed.
On receipt of the dossiers from the Staff Selection Commission, action should
be taken to check the original certificates of the candidates regarding their age, educational
qualifications, claim regarding membership of SC/ST or an Ex-servicemen, Physically
handicapped person etc. and to issue offers of appointment. If some of the candidates do not
respond to the offers of appointment sent to them, the vacancies thus remained unfilled may
be included in the next requisition to be sent to the Staff Selection Commission. An
intimation may also be sent to the Staff Selection Commission about the persons who did not
respond to the offers made, returning the dossiers of such candidates to the Commission.
The candidates should be medically examined before they are appointed.
129
Para 408 Recruitment of Group D: For filling up of vacancies in Group D cadre,
requisition should be sent to the local Employment Exchange, in the prescribed format,
keeping in view the extant instructions.
Minimum educational qualification for recruitment to Group D posts(Peons)
is a pass in the 8
th
Standard or equivalent examination. The possession of the minimum
educational qualification of 5
th
standard is desirable for recruitment of Sweepers, Farashas,
Chowkidars etc.
Applications sponsored by the Employment Exchanges and those who are
already working as contingency paid labour in the office, provided they are registered with
the Employment Exchange and possess the requisite qualifications for recruitment to the
Group D cadre should only be considered for appointment.
(Authority: (1) Comptroller and Auditor Generals letter No.3193-NGE.III/52-
83 dated 16.1.1984 (Page 44 of Au/A/VI/2/Vol.III/Orders., (2) Comptroller and Auditor
Generals letter No.4561-NGE.III/34-86/Vol.I-KW.3 dated 30.12.1987 (Page 104 of
Au/A/Confdl/16/Orders)).
Para 409 Relaxation of age limit: The upper age limit for recruitment is 27 years for Group
C and 25 years for Group D staff. The upper age limit may be relaxed upto 3 years in the
case of OBC candidates and five years in the case of Scheduled Caste/Scheduled Tribe
candidates.
(Page 247 of Au/A/16/O/Vol.II, Page 60 of Au/A/16/O/Vol.III, Page 121 of
Establishment and Administration Manual, 2000 Edition)
The upper age limit in respect of persons who are within the prescribed age
limit and placed in the panel may be relaxed upto one year by the appointing authority for
their appointment (Para 6.2.5 and 8.2, Manual of Standing Orders (A) Vol.I). Relaxation
of age limit requiring Comptroller and Auditor Generals approval should be referred to him.
Para 410 Extension of time limit for joining duty for new recruits: Principal Director of
Audit is empowered to grant extension of time to the extent indicated below:-
(i) Without any limit where the delay is due to non-completion of medical formalities in
respect of the candidate himself. In such cases, the panel seniority will remain intact;
(ii) In all other cases, extension upto a maximum period of two months beyond the last
date indicated in the offer of appointment can be granted. Seniority will be fixed
with reference to the date of appointment of the candidate.
(Para 6.2.10 of Manual of Standing Orders(Admn) Vol.I)
Para 411. Appointments on Compassionate Grounds: Appointments in Group C & D
Cadres of dependents of Government servants who die in harness (while in service
including death by suicide) or who retire on medical grounds, will be considered by the
Heads of Departments based on the following criteria:-
a) When a Government servant, appointed on regular basis, dies in harness or retires on
medical grounds, leaving his family in penury and without any means of livelihood and
in the event of there being no other earning member in the family.
b) The appointment on compassionate grounds of a spouse/son/daughter/brother or sister
(in the case of unmarried Government servant) of a Government servant will be
130
considered even when there is an earning member in the family of the deceased
Government servant, if the Principal Director of Audit is satisfied that the grant of
concession is justified having regard to the number of dependents, assets and liabilities
left by the Government servant, income of the earning member etc.
The concession of compassionate appointment in the case of Government
servant retired on medical grounds will not, however, be allowed in cases where the
Government servant has retired after attaining the age of 55 years for Group C staff and 57
years for Group D staff.
The appointment of spouse/son/daughter etc. of the deceased Government
servant could be considered by relaxing the upper age limit wherever found to be necessary.
The lower age limit shall, however, in no case be relaxed below 18 years of age.
In the matter of exemption from the requirement of passing the typing test,
those appointed on compassionate grounds to the post of Clerk/Typist will be governed by
the general orders issued in this behalf.
In the case of appointment of widows of deceased Government servants as
peons, they will be exempted from the requirement of the educational qualifications provided
the duties of the post can be satisfactorily performed by her without possessing such
educational qualifications. She will be allowed to continue in service even after remarriage.
Compassionate appointments will be made upto a maximum of 5% of
vacancies falling under direct recruitment quota in Group C & D cadres and will be
adjusted in the recruitment roster against the appropriate category.
A person appointed on compassionate grounds should give an undertaking in
writing that he/she will maintain properly the other family members who were dependent on
the Government servant in question and in case it is proved subsequently that the family
members are being neglected or are not being maintained properly by him/her, the
appointment may be terminated forthwith.
Cases of missing Government servants are also covered under the scheme for
compassionate appointment subject to the following conditions:-
A request for compassionate appointment can be considered only after a lapse
of atleast 2 years from the date from which the Government Servant has been missing,
provided that
(i) FIR to this effect has been lodged with the Police,
(ii) the missing person is not traceable, and
(iii) the competent authority feels that the case is genuine.
(Authority: Dept. of Personnel & Training O.M. No.14014/6/94 Estt(D)
dt.9.10.1998 received under CAGs Lr.No. 678/N(APP)/18-99/Vol.V dt.14.6.1999).
Para 412 Recruitment against Sports Quota: Appointments of meritorious sportsmen can
be made by the Principal Director of Audit to any post in Group C or Group D as per the
extant orders of Comptroller and Auditor General of India.

131
Recruitment against vacancies reserved for sports quota should be made only
after calling for applications from eligible candidates inserting advertisements in the leading
Newspapers and Employment News.
Clerk/Typists appointed against sports quota would not earn any increment nor
become eligible for confirmation and promotion, until he qualifies in the requisite type test.
Failure to qualify in the prescribed test will result in adverse consequences as laid down in
CAGs Lr.No.301-N.2/46-87 dated 1.4.1987.
Para 413 Offer of appointment and appointment orders: Before appointment, the
candidates are required to submit the following documents with the letter of acceptance of
offer of appointment.
1. Certificate of character in the prescribed form from the Head of the Educational
Institution last attended or from a Gazetted Officer duly attested by a District
Magistrate, Sub-divisional Magistrate or Stipendiary First Class Magistrate. This
certificate should have reference to the 2 years immediately preceding.
2. Attestation form, in the prescribed form duly completed.
3. SC/ST and OBC certificate from a Magistrate/Tahsildar/Sub-Divisional Officer (In
cases of SC/ST and OBC candidates only).
4. Declaration indicating whether he/she has more than one wife/husband living.
5. No objection certificate from his/her employer and release order from his/her
employer accepting his/her resignation from that service (In cases of employed
persons only).
6. Displaced person certificate from a Gazetted Officer of the Central Government etc.
(In cases of displaced persons).
Para 414 Verification of Identity: The identity of the candidate is verified at the time of
appointment by comparison of the photograph affixed on the attestation form and the
signature in the joining report with that on the original application and other records received
from Staff Selection Commission.
Para 415 Communal Roster: A communal roster indicating the number of reservations to
be made for Scheduled Caste and Scheduled Tribe candidates in respect of recruitment and
confirmations should be maintained in accordance with the orders issued by the Government
of India from time to time. Reference should be made to the Brochure on Reservations for
Scheduled Castes and Scheduled Tribes in services issued by the Ministry of Home Affairs.
After the introduction of Post based reservation rosters w.e.f. 2.7.1997, the
size of the roster shall be kept equal to the sanctioned strength in a cadre. Dereservation is
necessary only when a point in the roster proposed to be filled up is earmarked for reserved
category for which no eligible candidate from that community is available for promotion.
Even if, there is shortfall in the representation of reserved category candidates in a particular
cadre, in case the point which is proposed to be filled up falls on an unreserved point, the
question of dereservation would not arise.
(C&AGs letters No.1082-NGE(App)/3/97 dt10.9.97, 1285-NGE(App)/3-98
dt.4.12.98 and 276-NGE(App)/3-2000 dt.25.2.2000 Page Nos.16,86 and 95 of
AuA/VI/10/PBR/Vol.I).
132
Para 416 Training of Auditors: New recruits will be posted initially to regular sections so
that they may gain rudimentary knowledge about the office work. They will be given
training for a period of three months.
The training classes will be conducted in the forenoons and the trainees will be
sent to their respective sections in the afternoons for practical training.
The trainees will maintain diaries to record briefly what they learnt during
their training period. These diaries will be submitted daily to the Asstt. Audit
Officer(Training) who will submit them to the Deputy Director/Director every Monday.
The lectures will cover all items of work done in the various sections of the
office. As part of the practical training the trainees will be taken to Railway Stations,
Engineering Offices, Workshops, Stores Depots and different sections of the Accounts Office
to explain to them in detail how the initial records are maintained.
Tests will be conducted periodically on each subject and results thereof put up
to the Principal Director of Audit.
The Asstt. Audit Officer(Training) should indicate in his weekly diary the
progress of training with reference to:
I. Syllabus covered,
II. Tests held,
III. Items covered in practical training, and
IV. General remarks on the receptivity of the trainees.
Cases of trainees showing want of interest or progress in work should be put
up confidentially to Deputy Director/Director/ Principal Director of Audit.
Training should be imparted to new recruits and promotees before they
complete one years service in Auditors cadre and before they become eligible to appear in
24.9.1968).
The Clerk/Typists promoted to Auditors cadre should also be given suitable
training for a period of six weeks in not more than two batches in a year.
8.1.1968)
Para 417 Departmental Examination for Auditors: All direct recruits as well as
Clerks/Typists promoted as Auditors should pass the Departmental Examination which is a
pre-requisite for confirmation and promotion as Senior Auditor. The Examination will be
held twice a YEAR IN February and August each year. Proposals should be put up to
Principal Director of Audit in J anuary and J uly for nominating the Officers for setting all the
3 question papers. The dates of the examination will be determined by the Principal Director
of Audit. The Syllabus for the examination is given below:
Paper
Duration Maximum Marks
Paper I - Railway Audit 2 Hours 100
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Paper II - General Rules and Procedure 2 Hours 100
Paper III - Revenue Audit (Railways) 3 Hours 100
Note: Candidates will be declared to have passed if they obtain 40% of marks in each of the
papers. A candidate who fails to pass the examination but obtains in any paper atleast
50% of marks will be exempted from appearing again in that subject.

(Comptroller and Auditor Generals letter No.301-Exam./22-84 dated
3.4.1984 and 3-Exam/160-86 dated 2.1.1987)

The honoraria admissible to the examiners are as under:
1. For setting the
question papers
3 hours paper Rs.160/-
Less than 3 hours paper Rs.130/-
2. For Valuation 3 hours paper Rs.3.30 per paper
2 hours paper Rs.2.80 per paper
2 hours or less Rs.2.20 per paper

If the amount of honorarium computed on the above basis is less than Rs.10/-,
an amount of Rs.10/- will be granted as Honorarium.
(Authority: 263-NI/48-84 dated 13.2.89 - C.S. No.123 dt.13.12.89 to Para
313.A to MSO(A) Vol.I Second Edition)
Auditors who have rendered atleast one years service as on 1
st
February and
1
st
August are eligible to appear in the Examination. Auditors transferred from other offices
who have already passed the examination in their offices need not sit for the examination
again. The Principal Director of Audit may at his discretion condone deficiencies in the
prescribed service upto a limit not exceeding 60 days as on 1
st
day of the month in which the
examination is held.
(CAGs Lr.No.527-Exams/20-84/IV dt.20.8.91)
The Auditors and promotee Clerk/Typists are allowed six chances in six
consecutive examinations to pass the examination. Absence in any examination for whatever
reasons will also be taken as chance availed. Failure to pass the Departmental Examination
within the stipulated time/number of chances will entail discharge from service in the case of
direct recruits and reversion to Clerk/Typists in the case of promotees. The reverted
Clerk/Typist will have three more chances to clear this examination within two years of the
reversion.
Note: Two additional chances for appearing at the Departmental Examination can be
considered on merit alone for those who have exhausted all the six chances but could
not avail of one or two chances due to genuine reasons like national calamity,
compelling family circumstances, illness of self and family and any other such
circumstances considered by the Head of the Department to be genuine.
(Para 9.4 to 9.4.2 of Manual of Standing Orders(Admn) Vol.I)
134
The promotee Clerk/Typist who was reverted to the post of Clerk/Typist for
having not passed the Departmental Examination within the stipulated number of chances
will be considered for re-promotion, with others, only after completion of 5 (five) years from
the date of reversion.
While issuing the orders of promotion, this condition shall invariably be
incorporated in the promotion order itself.
(C&AGs letter No.654-NGE/App/53-90 dated 17.6.98 Page No.16 of
AuA/Confdl/O/15 Vol.I)
(Para 57 of Railway Audit Manual and Paras 287 and 288 - Manual of
Standing Orders(Admn) Vol.I and M.I.R. 4.3.1., 4.3.2. and 4.3.3.)
Para 418 Section Officers Service: Appointments to the cadre of Section Officers are made
mainly by promotion of Sr. Auditors of the Railway Audit Offices who have passed the
Section Officers Grade Examination.
Para 419. Section Officers Grade Examination: Section Officers Grade Examination is
held once a year, on the dates fixed by the Comptroller and Auditor General. Persons who
have put in a minimum of three years service in one or more of the following capacities will
be eligible to sit for the examination.
i) As Clerk/Typist, Auditor, in an Audit Office.
ii) As a Stenographer in an Audit Office.
The Head of Offices may recommend to the Comptroller and Auditor General
for consideration suitable and deserving cases for condonation of deficiency, not exceeding 2
months in each case in the minimum qualifying service of three years required for eligibility
to appear in the examination.
The maximum number of chances for Part I of the Section Officers Grade
Examination will ordinarily be 6. Indefinite number of chances in Part I shall, however, be
allowed to those candidates who secure 30% marks in aggregate in any one of the last two
chances availed of by them.
There will be no limit to the number of chances for Part II of the Examination.
Para 420. Selection and training of candidates for Section Officers Grade Examination:
After the results of the Section Officers Grade Examination are announced, names of
intending candidates for the next examination should be obtained in the prescribed proforma.
A Preliminary test will be conducted for those who are appearing for the first
time to select the candidates who will be allowed to sit for the examination. The test will
consist of two papers each of three hours duration - one on General English/General Hindi
and Constitution of India and the other on Omnibus Paper (without books) covering the
subjects on Establishment and Expenditure, prescribed for Part I of Section Officers Grade
Examination.
Candidates qualified in the Preliminary Test but not sitting for the examination
should again have to pass the Preliminary test if he is to appear for the examination in the
subsequent year.
135
Lectures will be given to the Section Officers Grade Examination candidates
for Part I and II Examinations by Asstt. Audit Officers and Audit Officers/Sr.Audit Officers
nominated by the Principal Director of Audit. The maximum number of lectures to be given
is 10 in the case of Prcis and Draft and 12 in the case of other subjects.
The lectures should be of not less than 75 minutes duration and should be
given within the office hours. Honorarium at the rates prescribed by the Comptroller and
Auditor General will be paid to the lecturers.
Para 421 Statement of candidates for Section Officers Grade Examination: A list of
candidates eligible for Section Officers Grade Examination Part I and II, approved by the
Principal Director of Audit, will be sent in the form prescribed in Para 9.2.3 of the Manual of
Standing Orders(Admn.) Vol.I so as to reach Comptroller and Auditor Generals Office by
15
th
August each year. An indication whether a particular candidate belongs to Scheduled
Caste or Scheduled Tribe should be given. The following information should also be
indicated invariably in the list of candidates.
In the case of a candidate who has secured the concession of another chance in
Part I of the Section Officers Grade Examination, by virtue of his having secured 30% of
marks in the aggregate in any one of the last two chances, actually availed of by him, the
month and year of that examination, the index number then allotted and the marks obtained
should be indicated against his name in the Remarks column of the statement.
The list compiled by the Administration Section should be checked in detail
by a Section Officer/Asstt. Audit Officer and an Audit Officer/Sr.Audit Officer other than
those who are responsible for the compilation. As soon as an advice is received from the
Comptroller and Auditor General about the programme of the examination and the index
numbers allotted to the candidates, the candidates should be notified and a copy of the
instructions also supplied to them. Candidates who secure exemption marks in two subjects
in Part I will be allowed to take the third subject along with Part II Examination. Candidates
who have passed Group I of the final examination of I.C.W.A. will be exempted from
Accountancy paper in Part II.
Note: For the subject Open-line Revenue, I.R.C.A. Coaching and Goods Tariff and
General Classification of goods in force on 1
st
April preceding the examination will
be the test books. (Comptroller and Auditor Generals letter No.389-Exam/151-67
dated 25.7.1968).
Para 422 Withdrawal from the examination: Candidates who wish to withdraw from the
examination, whether Part I or Part II, should apply for permission to do so before the lists of
eligible candidates are sent to Comptroller and Auditor General i.e. 15
th
August.
Applications received afterwards will not be considered unless there are very
compelling reasons in support of the request. Permission to withdraw ones name should be
applied for in any case before the commencement of the examination.
Para 423 Conduct of the Examination: The examination will be conducted by the
I.A.&.A.S. Officers nominated by Comptroller and Auditor General. A list showing the
particulars of candidates who have been allowed by the Principal Director of Audit to
withdraw from the examination should be forwarded to Comptroller and Auditor General
after the examination is over.
136
Para 424 Grant of leave to Section Officers Grade Examination candidates for
preparation: Leave may be granted to Section Officers Grade Examination candidates for
preparation subject to administrative convenience and with due regard to the principles
enunciated in S.R.232.
Para 425 Pass and Travelling Allowance to Section Officers Grade Examination
Candidates: The Section Officers Grade Examination is treated as an obligatory
examination for the purpose of Travelling Allowance. J ourneys performed in connection
with the examination are treated as journeys on tour. No daily allowance will, however, be
paid for the days of halt at the place of examination. Travelling Allowance for the journeys
may be given only for the first two attempts of a particular examination.
(Comptroller and Auditor Generals letter No.Admn/15-44/56/10638 dated
18.11.1960)
Para 426 Seniority in Section Officers Cadre: The promotion of Section Officers Grade
Examination passed Auditors is based on the recommendations of the Departmental
Promotion Committee constituted for the purpose, taking into account the extant orders on
communal roster.
Para 427. Revenue Audit Examination for Section Officers/Asstt. Audit Officers: A
Departmental examination called Revenue Audit Examination for Section Officers of the
Railway Audit Department has been introduced from the year 1974.
The examination will consist of 2 papers each of 3 hours duration and carrying
150 marks each. (Paper I deals with Income Tax and Paper II deals with Revenue Receipts of
the Department). The minimum marks required for a pass in the examination will be 40% in
each paper but candidates who obtain 60% or more marks in any paper will be exempted
from appearing in that paper in the subsequent examination. The examination will be held
once a year on the dates to be determined by the Comptroller and Auditor General.
31.10.1973, 266-Exam/102-72 dated 3.6.1974 and 170-Exam/8-1985 dated 18.3.1987)
Para 428 Conditions of eligibility to sit for the Exam: The completion of the prescribed
course of training will be an essential condition for eligibility for appearing in the
examination. Section Officers Grade Examination passed Auditors who have not been
promoted and those officiating as Section Officers in purely temporary leave vacancies will
not be allowed to sit for this examination.
3.6.1974 and 372-Exam/102-72 (III) dated 10.7.1974)
Para 429. Maximum Number of Chances: The maximum number of chances allowed for
passing this examination will be 6 (six) without any age restriction. Permission accorded to
appear in any particular examination shall count as one chance irrespective of the fact
whether the candidate actually sits for the examination or not, unless he is specifically
allowed by the Head of Office to withdraw his candidature. Such withdrawal shall not be
allowed unless the circumstances of the case fully justify the concession. Permission to
withdraw ones candidature should be applied for as early as possible and in any case before
the commencement of the examination.
137
(Comptroller and Auditor Generals letter No.1115-Exam/183-80 dated
14.10.1980 and Para 9.3.3. of Manual of Standing Orders(Admn.) Vol.I)
Para 430 Incentive to candidates passing the Examination: Such of those Section
Officers/Asstt. Audit Officers who pass the Revenue Audit Examination will be allowed one
advance increment in the Section Officer/Asstt. Audit Officers scale (as the case may be) in
which the pay is drawn at the time of writing the examination taking effect from the day
following the last day of the examination. The next increment will accrue on the normal date
of increment of each official. In the case of Asstt. Audit Officers passing this examination,
the advance increment has to be sanctioned by the Comptroller and Auditor General.
(C&AGs letter No.920-Exam/102.72 dated 31.10.73 and No.4093-GE.II/217-
86 Vol.II dated 4.12.87)
All the departmental officials, on passing intermediate and final examination
of I.C.W.A. are eligible for lump sum incentive of Rs.4,000/- and Rs.8,000/- respectively.
(Department of Personnel and Training O.M. No.1/2/89-Estt.(Pay-I) dt.9.4.99
received under CAGs No.184-Audit(Rules)/86-90/IV-99(41) dt.13.5.99)
Para 431 Travelling Allowance to the candidates for training: The candidates who have
to proceed for the training to a center at a place other than their Headquarters will be entitled
to Travelling Allowance as on tour and the period of training will be treated as duty.
(Comptroller and Auditor Generals letter No.484-Rev-Rec(iv)/29-71 dated
27.6.1974)
Para 432 Training of candidates: The Section Officers/Asstt. Audit Officers who desire to
appear in the examination would be given intensified training. The training will be in the
form of concentrated full time course spread over a period of 10 working days consisting of
25 lectures. Training will be arranged by the Accountant General (Audit-I), Andhra Pradesh,
Hyderabad.
Para 433 Syllabus for examination: Syllabus for examination is given in Manual of
Standing Orders (Admn.) Vol.I. The candidates will have to equip themselves with the
copies of codes etc. prescribed in the syllabus both for training as well as for reference in the
examination.
Para 434 Statement of candidates permitted to appear in the Examination: Particulars of
candidates permitted to appear in the examination should be intimated to Comptroller and
Auditor General in Form No.9 given in Manual of Standing Orders(Admn.) Vol.I.
(Para 9.3.2. of Manual of Standing Orders(Admn.) Vol.I).
Immediately after the close of the examination, a certificate to the effect that
all the candidates who were allowed to appear in the examination had completed the
prescribed course of training should be furnished to Comptroller and Auditor General
Para 435 Departmental Examination for promotion as Stenographer: A Limited
Departmental Competitive Examination for Clerk/Typists for promotion as Stenographers
will be held once a year in the month of August. Any permanent or temporary regularly
appointed Clerk/Typist who has completed 2 years continuous service as Clerk/Typist in the
138
I.A.&.A.D. and who has passed the Matriculation examination will be eligible to appear in
the examination.
The crucial date to determine the eligibility will be the first day of the month
in which the examination is held. There is no limit on the number of chances which may be
availed of by a candidate. The examination consist of 2 parts viz. Part A - written test and
Part B - Shorthand test. The subject of the examination, time allowed, the maximum marks
for each subject and the standard and the syllabus will be as follows:
Part A - Written Test:
Subject Time allowed Maximum marks
Paper I General English 1 hour 75
Paper II Essay 1 hour 50
Paper III General Knowledge 1 hour 75
(Minimum qualifying marks will be 40% in each of the papers).
Part B :
Shorthand test in English/Hindi
(80 words per minute)
10 Minutes passage 200 marks
(Minimum qualifying marks will be 55%).
(Comptroller and Auditor Generals letter Nos.186-190/N.2/40.84 dated
6.3.1984, 1259-Exam/21-84 dated September 1984 and Para 9.5 to 9.5.4 of Manual of
Standing Orders(Admn.) Vol.I).
Para 436 Limited Departmental Competitive Examination for Matriculate Group D
staff for promotion as Clerk/Typists: (i) Group D staff who are Matriculates and who
have put in 3 years continuous service on the first day of the month in which the examination
is held are eligible to appear for this examination. The examination will be held once in a
year in September and will consist of 3 written papers on:
Subject
Duration
Maximum marks
1. English/Hindi 2 hours 100
2. Arithmetic and Tabulation 2 hours 100
3. General Knowledge and Office
Procedure
1 hour 100
(ii) The pass marks required is 40% in each of the 3 papers. The number of
chances shall be limitless. The candidates who pass the written papers of the examination
become eligible for promotion as Clerks/Typists. Candidates securing 45% marks in any
paper(s) would be exempted from appearing in that paper(s) in subsequent examinations.
(Comptroller and Auditor Generals letters No.341-Exam/161-83 dated
30.4.1984, No.691-Exam/161-83 dated 5.7.1984, 833-Exam/161-83 dated 23.7.1986, No.242-
Exam/161-83 Vol.II dated 23.4.1987 and Para No.9.6 of Manual of Standing Orders (Admn.)
Vol.I)
139
(iii) Failure to qualify in the type test by Clerk/Typist - adverse effects:
Promotee Group D should not be reverted for failure to qualify in the requisite type test.
However, such of the candidates who do not qualify in the prescribed type test would not
earn any increments nor become eligible for confirmation and promotion. They are also not
eligible to appear at any departmental examination on passing of which promotion is given,
i.e. Section Officers Grade Examination etc. They are however, eligible for exemption from
passing the type test on their reaching the age of 45 years.
On passing the type test, their increments held over will be released but arrears
prior to passing are not payable.
If any period of probation is prescribed in the post of Clerk/Typist, such period
of probation cannot be deemed to have been successfully concluded, till the type test is
passed.
In cases where exemption from type test is granted either on reaching the age
of 45 years or on medical certificates, the above mentioned disabilities due to non-passing of
type test will cease to be operative on such exemptions.
(Comptroller and Auditor Generals letter No.301-N.2/46.87 dated 1.4.1987)
Para 437 Promotion of Auditors as Senior Auditors: Auditors in the Grade of Rs.4000-
100-6000 who have completed 3 years of regular service in the grade as on 1
st
October and
have passed the Departmental Examination for Auditors will be eligible for promotion as
Sr.Auditors.
(Comptroller and Auditor Generals letter No.718-N.2/41-84 dated 23.7.1984)
Para 438 Promotion of Clerk/Typists as Auditors: The posts in the Auditors cadre shall
be filled as follows:
a) 40% of posts by promotion of Clerks with 5 years regular service in the grade on seniority
basis subject to rejection of unfit; and
b) 10% of posts by promotion from the following:
(i) Clerks on passing Part I of S.O.G.E.
(ii) Graduate clerks with 3 years regular service in the grade on passing the
Departmental Examination for Auditors; and
(iii) Graduate Group D officials with 3 years regular service in the grade on passing
(Authority: Amendment of Recruitment Rules received vide C&AGs letter
No.72-NGE(App)/40-99 dt.31.5.2000 - Page 78 of AuA/16/O/Vol.III)
Seniority of Clerk/Typist transferred from other offices at their own request
will be the gradation list seniority for the purpose of promotion as Auditor.
The promoted Clerk/Typist will have to pass the Departmental Examination
for Auditors within two years of his promotion but if an examination is to be held within 90
days of the promotion, he may not take it, but may instead take the six consecutive
examinations held immediately thereafter. If he does not pass the examination within the
140
number of chances allowed, he will be reverted and the seniority again for promotion is
regulated from the date of reversion.
Clerk/Typists who came out successful in the Section Officers Grade Part I
Examination may be appointed as Auditors against the direct recruitment vacancies
immediately available thereafter. For this purpose, the requirements of age and minimum
educational qualifications prescribed for appointment of Auditors may be deemed to have
been relaxed in their favour. On their appointment as Auditors, such Clerk/Typists will be
exempted from passing the Departmental Examination and their pay will be fixed under the
normal rules of pay fixation.
30.9.1969 - Page No.115 of file No.AuA/Con/15).
Para 439 Promotion of Group D employees: (i) Promotions of Peons to the cadre of
Daftry are made on the basis of seniority-cum-fitness only. Peons with a minimum of 3 years
of regular service in the grade will be eligible for consideration for promotion as
Daftry/J amadar.
17.7.1967 of AuA/Con/15, No.1452-N.2/39-85 dated 18.12.1985 of AuA/V/46/Orders and
No.197-N.2/49-87 dated 27.2.1987)
(ii) Any Group D employee with minimum educational qualification of 8
th

Standard and 7 years of service as regular Group D will be eligible for appointment as
Record Keeper (Group C). The appointment will be on seniority-cum-fitness basis.
(Comptroller and Auditor Generals letter No.3945-N.2/74-83 dated
16.12.1983 and 105-N.III/1-82 dated 4.2.1988)
25% of the regular posts of the Record Keepers will be in functional Selection
Grade (Rs.3050-75-3950-80-4590) and Record Keepers with a minimum of 3 years of regular
service will be eligible for promotion to this grade on seniority-cum-fitness basis.
(C&AGs letter No.105-N-2/1-88 dated 4.2.1988 and No.261-N.2/83-90 dated
27.7.1991 - Pages 24 and 35 of AuA/V/66/O/Vol.I)
(iii) 10% of the vacancies in the cadre of Clerk/Typists occurring in a
recruitment year shall be filled according to the 20-point roster by the Matriculate Group D
employees who have completed 3 years of service as Group D and passed the Limited
Departmental Competitive Examination.
(Comptroller and Auditor Generals letter No.E.2-OSD(P)/73 dated
18.12.1973 - AuA/V/46/Orders)
Matriculate Group D employees who have completed 3 years regular service
on the 1
st
day of the month in which the examination is held are eligible for promotion
against 5% vacancies in the cadre of Clerk/Typists on seniority basis. The promotee
Matriculate Group D will have to pass the requisite type test. The conditions prescribed in
Para 435 (Official Manual) will apply mutatis mutandis in case the candidates who fail to
pass the type test.
141
{(1) Comptroller and Auditor Generals letter No.290-N.2/46-87 dated
27.3.1987 - Page 290 of AuA/V/46/Ord. Vol.I); (2) CAGs letter No.242-Exam/161-83/Vol.II
dt.23.4.87; (3) CAGs letter No.301-N.2/46-87 dt.1.4.87 (Page.294)}
(iv) Clerk/Typists including those promoted from Group D cadre are not
allowed increment unless they pass the requisite type test in English.
(Please see Para 436(iii) - Office Manual)
Para 440 Officiating promotions in short term vacancies: Short term vacancies arising
may be filled in the normal manner in cases where the duration of the vacancy exceeds 30
days. This limit will apply irrespective of whether it is a single vacancy or part of a chain of
vacancies.
Officiating promotions in vacancies of 30 days duration or less may be made
only in very exceptional circumstances with the prior personal approval of the Head of
Department.
(Ministry of Finance O.M.No.F.10(22)-E(Coord)/74 dated 18.6.1975 Page
144 of AuA/VI/2 Vol.II/Orders)
Para 441 Seniority: (1) The inter-se seniority of direct recruits will be regulated in
accordance with the position assigned to them by Staff Selection Commission. If a new
recruit does not join within the prescribed period, the seniority of such candidates will be
reckoned on joining duty as mentioned in Para 410(Office Manual).
(2) The seniority of Auditors who are reverted as Clerk/Typists on account of
their failure to pass the Departmental Examination and who are subsequently promoted as
Auditors will be fixed with reference to the date of their re-promotion to the Auditors cadre.
No weightage for past service in the Auditors cadre will be given to such Auditors for the
purpose of seniority.
(3) The seniority of the persons promoted from the Clerk/Typists cadre to the
Auditors cadre should be determined with reference to the date of promotion. However, in
cases of advance promotions, the seniority will be determined as if they had been promoted
against the appropriate points in the register.
(Comptroller and Auditor Generals letter No.D.O.F.3-OSD(P)73 dated
5.3.72 and No.776.F.3.OSD(P)/73 dated 23.4.73 (48) of AuA/V/46/Order)
(4) When promoted Clerk/Typists who fail to pass Departmental Examination
are reverted, their total service as Auditor and Clerk/Typist will be counted for seniority of
Clerk/Typists.
5.9.1968)
(5) In the case of mutual transfers, both the staff transferred will be assigned
seniority for the lower of the two lengths of service.
Para 442 Confirmation: A revised procedure for confirmation, retention of lien etc. has
been introduced with effect from 1.4.88 and accordingly confirmation will be made only once
in the service of the official, in the entry grade without linking the confirmation with
142
availability of permanent vacancy in that grade after successful completion of probation of 2
years and passing the departmental examination in case of Auditors.
Confirmation in the grade to which initially recruited will be placed before
DPC and a specific order of confirmation will be issued when the case is cleared from all
angles.
As no officer otherwise eligible will have to wait for confirmation pending
availability of permanent vacancy, the need for following the procedure for declaring a
person quasi-permanent ceases to exist.
The benefits of having a lien in a grade will be enjoyed by all officers who are
confirmed in the grade of entry or who have been promoted to a higher post declared as
having completed the probation where prescribed or those who have been promoted on
regular basis to a higher post where no probation is prescribed under Rules, as the case may
be.
The present distinction between permanent and temporary employees for grant
of pension and pensionary benefits will cease to exist.
The need for reservation at the time of confirmation in posts and services
filled by direct recruitment will cease to exist, as everyone who is eligible for confirmation
will be confirmed.
(Authority: C&AGs No.2536-NGE.III/43-88 dt.20.7.88 NGE Group Circular
No.N/56/1988)
Para 443 Transfers: The staff are liable for transfer to any of the units including the Branch
offices.
No member of the staff, including the Audit Officer/Sr. Audit Officer should
normally be kept in the same group beyond five years. Retention in a particular group
beyond five years will be allowed only in exceptional circumstances and with the specific
orders of the Head of Department.
(Comptroller and Auditor Generals letter No.215-PC(COORD)/3-87 dated
17.11.1987 Page 211 of AuA/V/55/Vol.II).
By the due date prescribed, the sections should furnish an annual return to
Administration section indicating the section and the periods during which the staff have
worked during the year under report. A register called Staff Movement Register showing
all the particulars regarding movement of staff should be maintained in the Administration
Section.
Para 444 Applications for employment elsewhere: Applications for posts under Central or
State Government and Statutory Corporations should be sent to the Administration Section
for transmission to the prospective employer. No application should be sent direct.
Applications other than those in response to advertisements in newspapers or
circulars from Comptroller and Auditor Generals office will not be forwarded.
Applications from purely temporary employees may be forwarded unless there
are compelling grounds of public interest for withholding them. In the case of permanent
143
employees, however, only four opportunities in a year may be given to apply in response to
advertisements, unless in the interest of public service, they have to be withheld.
A written undertaking accepting the conditions stipulated in the Government
of India, Ministry of Home Affairs O.M.No.70/62/62-Ests.(A) dated 22.1.1966 should be
obtained before forwarding applications from permanent Government servants for posts in
Public Sector Undertakings/Autonomous Semi-Government Organisations. The foreign
employer should also be informed of this. Quasi-permanent employees appointed to such
posts should be treated as on foreign service for a period of two years and given the same
treatment as permanent employees.
Before forwarding the applications of temporary employees for posts in public
sector undertakings/organisations, a written undertaking to the effect that in the event of
selection to the posts applied for they will resign from Government service, should be
obtained from them.
{(1) Ministry of Home Affairs, O.M. No.70/62/62-Ests.(A) of 22.1.66; (2)
Department of Personnel and Training O.M. No.28016/5/85-Estt(C) dt.31.1.86, and
No.4(12)85-P&PW dated 31.3.87 as amended from time to time}
Para 445 Compulsory retirement: Extension of service and Refused Leave: The provisions
of FR.56 regarding the age of superannuation are applicable to staff of this office.
In terms of FR(56)(J ) appropriate authority, if it is of the opinion that it is in
the public interest to do so, have the absolute right to retire any government servant by giving
him notice of not less than three months in writing or three months pay and allowances in
lieu of such notice.
The power to relax three months notice period vests in the President.
(Comptroller and Auditor Generals letter No.1603-NGE.I/313-65 dated
29.7.1967)
(i) If he is in Group A or Group B service or post in a substantive or temporary
capacity and had entered Government service before attaining the age of thirty five
years, after he has attained the age of fifty years.
(ii) In any other case, after he has attained the age of fifty five years.
This proviso will not apply to Group D Government servants, who entered
Government Service on or before 23
rd
J uly, 1966.
For the purpose of application of Fundamental Rule 56(J ) it is necessary to
determine if retention of Government servants beyond the age of 55 years will be in public
interest. For this purpose, the following procedure has been laid down.
(Ministry of Home Affairs O.M. No.33/15/66-Estts (A) dated 10.11.1966)
1. Case of a government servant should be reviewed six months before he attains the age of
55 years and decision taken thereon by the appropriate authority.
2. Once a decision is taken by the appropriate authority to retain a government servant
beyond the age of fifty five years in public interest, the employees concerned will
continue in service automatically till he attains the age of compulsory retirement. If,
144
however the appropriate authority subsequently considers that further retention of the
government servant will not be in public interest, that authority may take necessary action
to serve three months notice in terms of clause (J ) of Fundamental Rule 56. No proposal
for extension of service/re-employment beyond the age of superannuation will, ordinarily,
be considered. Detailed instructions regarding grant of extension of service (re-
employment) contained in Ministry of Home Affairs O.M.No.26/11/68 Ests.(B) dated
17
th
J une, 1969 should be borne in mind in recommending extension of service to staff.
All proposals for extension of service should be submitted to the Comptroller and Auditor
General.
(CAGs letter No.75-NGEI/150-67(I) dated 10.1.1968)
Para 446 Pension: The payment of superannuation pension should in all cases commence on
the first of the month in which they are due. The Head of Office responsible for preparing
the pension papers will initiate the pension case 2 years before the date of retirement of the
Government servant. Deficiencies, imperfections and omissions in the Service Book should
be removed and the service book completed in good time, at any rate, not later than 8 months
in advance of the date of retirement of the Government servant. The actual work of
preparation of pension papers should be taken up 8 months before the date of retirement.
It shall be the responsibility of the officer maintaining the Service Registers to
make annual verification and also to complete and certify the service book in respect of
previous service on the 25
th
year of service or 5 years before the retirement and communicate
to the Government servant the period of qualifying service so determined in consultation with
the Principal Director of Audit, Eastern Railway.
(Ministry of Finance O.M.No.F.11(3)-EV(A)/76 dated 28.2.1976)
The progress of pension cases should be watched by means of the following
monthly, quarterly and half-yearly statements.
1. Statement No1: This is a monthly statement and should cover cases of all government
servants due to retire within the succeeding 8 months. It will indicate the progress of the
cases with reference to various stages and this should be submitted to Principal Director of
Audit by 5
th
of each month.
2. Statement No.2: This statement covers the cases of those who became due for retirement in
the preceding month and this should be submitted to Principal Director of Audit by 3
rd
of
each month.
3. Statement No.3: This is a quarterly statement and is meant to cover provisional pension
and/or provisional Death-cum-retirement-gratuity cases which are to be made final after the
expiry of the period of 6 months. This should be submitted to Principal Director of Audit by
10
th
of April, J uly, October and J anuary for the quarters ending 31
st
March, 30
th
J une, 30
th

September and 31
st
4. Statement No.4: This is a quarterly statement and should indicate the details of the
presumptions made in favour of the retired Government servants because of
incomplete/improper maintenance of Service Registers. This should be submitted to
Principal Director of Audit by 15
th
of April, J uly, October and J anuary for the quarters ending
31
st
March, 30
th
J une, 30
th
September and 31
st
In addition to the above, a six monthly report (Statement No.5) showing the
particulars of Government servants in whose cases pension was not determined within 6
145
months of the retirement should be submitted to Principal Director of Audit by 15
th
J uly and
J anuary for the half-year ending 30
th
J une and 31
st
December.
The Head of Office shall undertake the work of preparation of pension papers
in Form No.7, 2 years before the date of retirement and obtain particulars in Form No.5 from
the Government servant 8 months before the retirement. The Head of Office shall complete
Part I of Form No.7 not later than 6 months prior to the date of retirement of the Government
servant. Thereafter, the following documents shall be sent to Principal Director of Audit,
Eastern Railway with the pension case of every non-gazetted and Group B officer for
verification.
1. Details of service and the order of the pension sanctioning authority.
2. Medical certificate for invalidation (if the claim is for invalid pension)
3. Service Book.
4. Statement of average emoluments, reckoning for pension.
5. Form No.5
6. Form No.7
7. Statement showing calculation of pension, DCRG and Family pension.
In respect of Group A officers, the pension papers should be processed as
indicated above and sent to Pay and Accounts Officer, Office of the Accountant General,
Andhra Pradesh, Hyderabad, for verification and arranging payment.
In dealing with pension cases, the procedure laid down in Chapter.VIII of CCS
(Pension) Rules, 1972 may be kept in view.
Para 447 Family Pension: Family pension is also verified and sanctioned along with the
superannuation pension and Death-cum-retirement gratuity and communicated to the
Accounts Officer.
Para 448 Nomination: Every employee shall execute nominations for Family Pension and
Death-cum-retirement gratuity. The nominations for Death-cum-retirement gratuity should be
executed on completion of five years of qualifying service. These nominations are
scrutinised and put up to the Deputy Director (Head of the Office) for counter-signature.
Thereafter, necessary entries regarding the date of nomination for family pension/death-cum-
retirement gratuity are made in the Service Register of the individual and lodged in the
confidential file kept in the custody of the Audit Officer/Sr. Audit Officer(Administration).
A remark that the nomination is kept in the confidential file with the Audit Officer/Sr. Audit
Officer is also to be made in the Service Register. Acknowledgement shall also be given to
the individual concerned. In the case of employees who have elected to be governed by the
Family Pension Scheme, 1964, it is necessary to obtain particulars of composition of the
family and separate nominations for Family Pension are not necessary. These particulars
must be kept in the Service Register of the employee.
Para 449. Settlement bills: When an employee retires from Government service, resigns or
is relieved on transfer to some other department or is retrenched or dismissed from service,
146
the pay and allowances due to him for the part of the wage period ending with the date on
which such event occurs should be drawn in a separate pay bill, marked prominently
settlement pay-bill. Before drawing such a bill, it should be ensured that there are no dues
outstanding against the employee.
Para 450 Budget and Revised Estimates: The instructions contained in Paras 72 to 78
Railway Audit Manual and Chapter IX of Comptroller and Auditor Generals Manual of
Standing Orders may be seen.
The Budget Estimates and Revised Estimates in respect of Group A, B, C
and D posts and office expenses shall be prepared in the following forms:-
1. Group B/Non-Gazetted Establishment - Forms A to D
2. Group A Officers - Forms E to H
While formulating the monetary estimates, the following instructions may be
kept in view, besides those issued from time to time.
The provision for men-in-position should be accurately estimated.
Provision for those posts out of the vacant ones which can be filled-in during
the remaining part of the year should only be proposed.
Provision for additional posts should not be made in the estimates. No
provision for additional posts under the head-Travel Expenses should be made.
The requirement under the head Salaries should be computed with reference
to actuals for the first 6 months and under other heads on the basis of actuals for the 5
months.
Provision for the purchase of items like Accounting Machines, Staff Car,
Water Coolers, Grants-in-aid etc. should be separately indicated.
Provision for Cash Awards to employees under the Hindi Teaching Scheme
may be provided under the sub-head Other Charges and shown distinctly.
Provision for special construction works and ancillary requirements should be
made under the sub-head minor works.
Explanations for variations should invariably be furnished in the estimates.
The estimate of funds required under the head salaries in the Budget will be
framed on the basis of trends over the preceding 3 years taking into account other relevant
factors like changes in rates of pay, allowances, number of posts and their filling and
economy instructions issued from time to time. With effect from 1987-88 provision for
Festival Advances should be made under salaries. The provision will be on a net basis i.e.
net of recoveries under the head salaries.
(CAGs letter No.2013-BRS/42-2000(Email) dt.10.9.2000 Circular No.6-
BRS/2000)
Para 451 Estimates for Deposits and Loans, Pensionary charges: See Paras 76 and 77 of
147
REGISTERS
REGISTER OF CONTINGENT
EXPENDITURE
REGISTER OF EXPENDITURE
REGISTER OF LIABILITIES
Para 452. Register of Expenditure: All Pay, Travelling Allowance and other bills relating
to claims of staff for each month classified under the detailed heads of account should be
posted in this register. The bills should be serially numbered and entered in the register
before the fair copy of the bills are put up for signature of the Branch Officer.
(General Financial Rules-66)
Para 453 Register of Contingent Expenditure: This register is intended to watch the
adjustments of debits pertaining to contingent expenditure such as telephone charges,
electricity charges, cost of stationery forms, books, periodicals, liveries and charges for repair
of furniture and office equipment. Before putting up these bills to the Branch Officer for
signature, the expenditure relating to this should be posted in the register. Total expenditure
booked on contingencies for a month should be posted in the expenditure register under the
detailed head 02-614-18-PDA/SCR/SC-A4(4)-Office expenses monthly.
Every month, the particulars of expenditure booked in the accounts of a month
should be ascertained from the Financial Adviser and Chief Accounts Officer and the same
reconciled with the expenditure booked in the Register of Expenditure.
Para 454 Control Statements: The Comptroller and Auditor General controls the
expenditure under the major head 216-Audit incurred in the several Audit and Accounts
Offices. Principal Directors of Audit are responsible to keep the expenditure within the limits
of appropriation. For the purpose of exercising proper control over expenditure, a monthly
review of expenditure as specified in Paras 367 to 369 of the Manual of Standing Orders
should be prepared commencing from the month of September, and sent to the Comptroller
and Auditor General. The monthly review of expenditure in respect of Group A officers
and Group B/non-gazetted establishment should be prepared separately. The monthly
reviews of expenditure are required to reach the Comptroller and Auditor Generals office by
the middle of the month succeeding that to which they relate.
Only the amount of bills which have been actually passed for payment in a
particular month should be shown in column 3 of the monthly review of expenditure. As the
accounts of a particular month are not generally closed before the due date for the submission
of the control statement, statement of expenditure booked as also the expenditure proposed
for inclusion by Accounts Office in the accounts of that month has to be ascertained. This
expenditure, and not the expenditure as noted in the Expenditure Register, should be included
in Column 3 of the control statement.
The purpose is to review the expenditure upto-date and adopt special measures
to limit the expenditure on items which tend to exceed the estimate, or approach Comptroller
and Auditor General for a supplementary provision. The control statement upto J anuary due
by 15
th
February, should be specially scrutinised to surrender any unwanted provision.
(Paras 11.12 to 11.15 of Manual of Standing Orders (Admn.) Vol.I 3
rd

Edition).
148
Para 455 Register of Liabilities: A Liability Register should be maintained with a view to
keeping a systematic watch on the liabilities to be met. The register should be maintained in
the form given below:
Sl. Particulars Approximate Date of receipt Reference to voucher
No. of indent cost and reference to debit or bill
for supplies issue vouchers ---------------------------
No. Date Amount
1. 2. 3. 4. 5. 6. 7.

When Reference to the entry in Remarks
accepted Contingency Register
8. 9. 10.

The register should be reviewed every month and suitable action taken to see
that supplies are made without undue delay and that bills are received and accepted in respect
of supplies made.
The register should be put up to the Audit Officer/Sr.Audit Officer(Admn.)
every month.
Para 456 Appropriation Accounts: After the close of the accounts for the year, the
Appropriation Accounts of the expenditure pertaining to this office booked to the Civil Head
216-Audit will be prepared. In preparing the Appropriation Accounts, instructions issued
by the Principal Director of Audit, Central Revenues should be followed.
The accounts will be compiled in the proforma prescribed in Para 4 of the
Comptroller and Auditor Generals Manual of Standing Orders (Technical) Vol.II. The
explanations for variations should be drawn up carefully. The explanations for variation
should conform to the explanations given in the various control statements, especially the last
control statement. After approval by the Principal Director of Audit, the accounts will be
forwarded to the Principal Director of Audit, Central Revenues, by the date advised by him.
Copies of the Appropriation Accounts will be endorsed to the Comptroller and Auditor
General and General Manager(Budget), South Central Railway.
The audit certificate in the form prescribed will be signed by the Principal
Director of Audit after obtaining the necessary certificate of Audit from the Principal
Director of Audit, Central Revenues, in respect of expenditure relating to Group A officers
149
and from the Principal Director of Audit, Eastern Railway, in respect of Group B/Non-
gazetted establishment and forwarded to the Principal Director of Audit, Central Revenues.
Para 457 Appropriation Accounts of Pensionary Charges: The Appropriation Accounts in
respect of pensionary charges will be compiled and sent to the Financial Adviser and Chief
Accounts Officer, of this Railway.
Para 458 Preparation and registration of Bills: All bills received in the office from the
staff or from outsiders should be entered in chronological order in the Register of Bills to be
maintained separately for different categories of bills such as Travelling Allowance Bills,
bills for Medical Reimbursement, Reimbursement of Tuition Fees. At the time of passing the
bills each entry in the register of bills should be attested by the Branch Officer. Remarks
regarding passing of the bills or otherwise should also be given in the remarks column of this
Register. A progress report showing the details of the bills outstanding for more than a week
should be put up to the Branch Officer on every Monday.
Para 459 Abstract of Attendance: The Branch/Divisional Audit Officers are required to
send to the Administration section by the 16
th
of each month abstract of attendance of all the
Asstt. Audit Officers and non-gazetted staff in that Branch/Division for the period from the
15
th
of previous month to the 14
th
of the current month. The abstract of attendance forms the
basis for the preparation of pay bills.
Para 460 (a) Salary bills of Gazetted and Non-gazetted officers: The preparation of all the
pay bills of officers and staff (Group B, C & D) of this office has been taken over on
the computer by the EDP Centre of South Central Railway with effect from 01.04.1988,
using the same programme followed by the Railway Administration. Bills are being prepared
for Gazetted and Non-gazetted officers separately. Bills in respect of all the units are passed
and payment arranged by the Financial Adviser and Chief Accounts Officer, South Central
Railway. The procedure to be followed is detailed in P.O.O. No.113 dated 19.12.1988.
(b) System of Payment to Group A Officers: The pay and allowances of Group A
Officers of this office are drawn by this office in the same manner as for staff and Group B
Officers and sent to the Pay and Accounts Officer(Audit), Office of the Accountant General-
II, Andhra Pradesh, Hyderabad.
Para 461 Signing of Pay Bills: Pay Bills after check by the Section Officer/Asstt. Audit
Officer should be submitted to the Audit Officer/Sr.Audit Officer(Bills) nominated for the
purpose with the accompaniments for approval and signature. The specimen signature of the
officer authorised to sign bills will be sent to the Financial Adviser and Chief Accounts
Officer. Whenever there is a change in nomination, the specimen signature of the officer
should be sent to the Financial Adviser and Chief Accounts Officer cancelling the authority
delegated to the outgoing officer.
Para 462 Increment Register: All increments accrue as a matter of course in terms of
Fundamental Rules 26 unless withheld as a disciplinary measure.
The Register of Increments will be maintained in Form-SY.299. In the first
week of every month, cases of all staff whose normal increments fall in that month should be
reviewed taking into account all factors which may have the effect of postponing the
150
increment, and the actual date of next increment and the rate of pay after such date worked
out and noted in the respective columns against the names of the staff concerned. The
Increment Register should be put up through the Audit Officer/Sr.Audit Officer (Bills) to the
Deputy Director/Director incharge of Administration by the 10
th
of every month.
Newly recruited clerk/typists (on sports quota and compassionate grounds)
including those promoted from Group D cadre will not be granted increment unless they
pass the prescribed type test.
(Para 290 of Manual of Standing Orders(Admn.) Vol.I and Para 103 of
Railway Audit Manual).
Para 463 Drawal of H.R.A. and C.C.A.: HRA and CCA will be paid in the various pay
ranges at the rates fixed by the Government of India from time to time.
H.R.A. at the prescribed rates may be paid to all employees (other than those
provided with Government accommodation) without requiring them to produce rent receipts.
However, they should furnish a certificate to the effect that they are incurring some
expenditure on rent/contributing towards rent. H.R.A. at these rates will also be paid to
Government employees living in their own houses subject to their furnishing a certificate that
they are paying/contributing towards house or property tax or maintenance of the house.
Para 464 Income Tax: The amount of income tax to be deducted monthly from each
member of the staff whose income is taxable should be calculated twice in a year i.e. first in
August (approximately) and finally in February. In the Pay bill of February, the final
adjustment of the income tax recovery will be made taking into account the total amount
recovered till then on approximate basis. Particulars such as amount of Life Insurance
premia, amount of Postal Cumulative Time Deposit etc. should be called for from the staff
for making the final assessment.
At the close of the financial year, a statement of income tax deducted at source
for the financial year should be made out in triplicate from the office copies of the pay bill
register. Two copies of the statements should be submitted to the Financial Adviser and
Chief Accounts Officer.
(Ministry of Home Affairs O.M. No.24/10/64-AB dated 26.3.65)
Para 465 Recovery of rent for Railway Quarters: Rent, electricity charges, and water
charges are required to be recovered from the staff who are in occupation of Railway quarters
at the same rate as are applicable to the railway staff. A rent roll in the form prescribed
should accompany the Pay Bill.
Para 466 Recovery Register: Separate Recovery Registers should be maintained for each
category of recovery. Only one register should be maintained for the whole office in respect
of each category of recovery. The following are the recoveries for which the registers are
maintained.
1. Advance of pay on transfer.
2. General Provident Fund Advance.
3. Advance for conveyances.
4. Festival Advance.
151
5. Fan Advance.
6. House Building Advance.
7. Loans due to Co-operative Credit Society.
Entries in respect of items (1) to (6) are made from office orders/sanctions and
entries in respect of item (7) are made from the debit schedule received from the Co-
operative Credit Society. Actual recoveries effected through the pay bills should also be
noted in the register monthly under the various headings and attested by the Section
Officer/Asstt. Audit Officer.
Para 467 Supplementary Bills: The pay and allowances of any member of the staff (when
not drawn through the main pay bill) will be drawn through a supplementary bill. This will
be prepared in the same manner as that of the main pay bills.
Para 468 Arrear Bill: Arrears of pay, allowances or leave salary etc. if more than three
months old, will be drawn through a separate pay bill giving indication to the main pay bill in
which it was not drawn. A note of the arrear bill should be made in the office copy of the
bills for the period to which the arrears pertain duly attested by the Section Officer/Asstt.
Audit Officer(Bills) to obviate the arrears being claimed for the second time. The certificates
mentioned in Para 276 of the Treasury Rules Vol.I should be recorded on the arrear bill.
Para 469 Last Pay Certificate: Last Pay Certificate is required to be prepared only when the
staff are transferred out of this office i.e., to the jurisdiction of another Accounts Office.
Para 470 Disbursement of Pay and Allowances: For payments on other than pay day, the
procedure laid down by the Financial Adviser and Chief Accounts Officer from time to time
should be followed. In terms of Para 72 of Railway Audit Manual, audit of expenditure
relating to this office is done by the Principal Director of Audit, Eastern Railway. Copies of
all sanctions and office orders should invariably be endorsed to the Audit Officer.
Comptroller and Auditor General has fixed 25
th
of every month as the due date for receipt of
paid vouchers for the previous month by the Audit Officers (CAGs letter No.1149-TAI/239-
66 dated 20.4.1967). Financial Adviser and Chief Accounts Officer, South Central Railway
has been requested to adhere to the date fixed by the Comptroller and Auditor General strictly
vide this office letter No.AuA/XI/1/O dated 4.5.1970.
Para 471 Leave: Leave should be applied for by the staff in the prescribed form. Leave
applications will be considered only if they have been recommended by the Asstt. Audit
Officer/Section Officer and Branch Officers.
The Principal Director of Audit has delegated his powers to sanction all kinds
of leave (except Special Casual Leave, Special Disability Leave and Study Leave) to the
authorities mentioned in Column - 3 as indicated below, under the authority vested in him by
CAG vide letter No.2991-GE.II/109-84 dated 04.01.1985.
Category
of
Employee
Period of Leave Competent
Authority
Remarks
(1) (2) (3) (4)
152
Asst.
Audit
Officers
with pay and allowances
upto 30 days without a
substitute.
Group Officer
concerned
Leave to Officers
working directly with
Pr.DA should be
sanctioned only with
the approval of Pr.DA.
with pay & allowances
beyond

Para 472 Maintenance and verification of Service Registers and Leave Accounts: The
maintenance of service registers and leave accounts of the Group A and Group B officers
and non-gazetted staff of this office is the responsibility of Administration Section. The
posting of all office orders concerning the official events of an employee in his service
register should be done as and when they occur. Section Officers/Asstt. Audit Officers are
authorised to attest entries in the service book of non-gazetted staff other than those on the
first page of the service book and annual verification of service. These powers will not,
however, be exercised by them in respect of entries in their own service register. The Audit
Officer/Sr.Audit Officer (Admn.) who is delegated with powers to attest entries on the first
page of the service register, should verify 10% of the other entries in the service books and
initial them in token of their having done so.
The Audit Officer/Sr.Audit Officer (Admn.) is delegated with powers to attest
the entries in the Service Register and the leave account of all the gazetted officers and these
entries should be verified to the extent of 10% by the Deputy Director/Director (Admn.)
every year.
(Ministry of Finance letter No.3(3)-E-G.I/67 dated 20.4.1967 received under
CAGs letter No.1384-Tech.Admn.I/698.66 dated 3
rd
May, 1967 and CAGs letter No.2888-
Tech.Admn.I/51-60 Volume III dated 23
rd
August, 1968).
The service of each pensionable employee must be verified from the pay bills
every year and a certificate regarding such verification recorded in the service register soon
after the close of the financial year. A report to the Comptroller and Auditor General that
such certificates have been recorded should be sent by 10
th
J uly.
Service registers of staff who may be permanently transferred from other
Audit Offices should be reviewed on receipt to see that the certificate of verification of
pensionable service till the end of the month preceding their transfer has been recorded and
attested.
(Soon after an Officer is confirmed in a Gazetted post, action should be taken
to arrange for the non-gazetted portion, of his service being verified by the Principal Director
of Audit, Eastern Railway).
All service books and leave accounts of staff should be thoroughly checked by
Internal Audit Section and that of the staff of the Internal Audit section should be checked by
a Section Officer/Asstt. Audit Officer nominated by the Deputy Director/Director, once a
year.
The service books should be verified and attested by the staff concerned once
every year and an annual certificate to this effect submitted to the Comptroller and Auditor
153
General by 30
th
September every year. A programme should be drawn up for the verification
of the service registers of the staff, in batches early in August.
(CAGs letter No.2515-NGE.I/68-67 dated 20.11.1967 and SR.197 to 203)
Para 473 Office Order Books: Separate Office Order Books should be maintained for
Gazetted Officers and Non-Gazetted Officers in which the Office Orders are pasted in
chronological order.
Para 474 Travelling Allowance: Audit staff are governed by the Travelling Allowance rules
contained in the Indian Railway Establishment Code Vol.II. The provisions in
Supplementary Rules will, however, apply to the Railway Audit staff in respect of journeys
on deputation to and from non-railway offices.
The staff are required to present their travelling allowance claim in Railway
Travelling Allowance J ournal Form, in duplicate, to the Bills section. Separate travelling
allowance journal should be prepared for every month, even though the same tour may be
continued extending over different calendar months.
The travelling allowance journal should be scrutinised and submitted to the
Controlling Officer, i.e. Audit Officer/Sr.Audit Officer in charge of Bills in the case of non-
gazetted staff, and Deputy Director/Director in the case of gazetted officers for counter-
signature, after entering full details in the Register of Travelling Allowance Claims, to be
maintained separately for gazetted officers and non-gazetted officers.
Particulars regarding the claims viz. date of commencement and completion of
journey, number of days, rate of travelling allowance, gross claim, advance of travelling
allowance, net claim, date of passing the advance, and the month in which the travelling
allowance claims have been included will be noted therein. The register should be put up to
the Audit Officer/Sr.Audit Officer (Bills) along with the claims of non-gazetted officers
which he countersigns. Those of the gazetted officers should be put up to Deputy
Director/Director through Audit Officer/Sr.Audit Officer (Bills).
The travelling allowance claims of Group B Officers and non-gazetted
officers are paid through pay sheets. The amount of the claim in each journal will be entered
under the column Travelling Allowance in the monthly pay sheets. The original travelling
allowance journal should be attached to the pay bill and the duplicate travelling allowance
journals filed separately in Bills Section. Travelling allowance journals received in the Bills
Section upto 10
th
of a month will be included in the pay sheet of that month.
Para 475 Advance of Travelling Allowance on tour/transfer: Applications for advance of
Travelling Allowance on tour should be submitted in the prescribed form. Advance of
Travelling Allowance on tour is normally admissible upto 75% of the anticipated claims. A
temporary employee should furnish surety bond from a permanent employee, alongwith his
application for advance. The advance of Travelling Allowance will be adjusted in the
Travelling Allowance Bills to be submitted immediately on the completion of the tour or on
31
st
March whichever is earlier. The advances granted in the month of March should be
adjusted before 30
th
April.
Advance of Travelling Allowance should be noted in the Register of
Travelling Allowance claims passed and attested by Audit Officer/Sr.Audit Officer (Bills).
154
Para 476 Medical Attendance Rules: Compilation of Central Service (Medical Attendance)
Rules, 1944 and orders issued by the Government of India from time to time should be
referred to in dealing with the claims for reimbursement of medical expenses.
Audit Officers / Sr. Audit Officer (Bills) is delegated with powers to
countersign the Medical reimbursement claims of Non-gazetted staff subject to the following
conditions.
(i) That the bills for more than Rs. 200/- requires the counter signature of Deputy
Director / Director in charge of Administration.
(ii) Cases of the Government servants whose progressive total of bills exceeds Rs.
1,000/- per annum should be brought to the notice of Deputy Director / Director in
charge of Administration.
(iii) Reports of Internal Audit and replies thereto should be submitted to Deputy
Director / Director in charge of Administration, for information.
(CAGs letter No. 57-NGE.I/78-80 dated 15.01.1982)
All bills for charges on account of medical attendance and treatment should be
countersigned by the Controlling Officers who are authorized to countersign traveling
allowance bills of the government servant concerned.
A Register of Medical Claims should be maintained in the Bills Section
allotting separate pages for the various employees. The register should be submitted to the
Audit Officers / Sr. Audit Officers (Bills) / Deputy Director / Director fortnightly showing
the position of the claims received but not passed within a week. Giving also brief reasons for
the delay in disposal of the claims.
Para 477. Educational Assistance: A Government servant is eligible to draw Childrens
Educational Allowance when he is compelled to send his child to a school away from the
station at which he is posted and/or residing, owing to the absence of a school of the requisite
standard at that station.
The rates of allowance effective from 1.8.97 are as under:
Primary, Secondary and Higher
Secondary classes
Rs.100/- p.m. per child.
dated 12.6.98)
The allowance shall be admissible to a Government servant throughout the
year, not withstanding that no tuition fees is paid during the vacation. Childrens Educational
Assistance shall be admissible in respect of children between the age limit of 5 years and 20
years. Assistance is admissible in respect of not more than 3 children born upto 31.12.1987
and shall be restricted to 2 children born thereafter.
dated 3.8.90)
The Government servant while applying for this allowance initially, should
furnish a certificate as per Rules and thereafter in the months of March and J uly every year.
155
Para 478 Reimbursement of Tuition Fees: A Government servant shall be eligible to the
reimbursement of tuition fees payable and actually paid in respect of his/her child provided
that no childrens educational allowance is admissible to him/her. The tuition fees may be
reimbursed subject to the following limits w.e.f. 01.08.97.
1.
Class X and below Rs.40/- p.m. per child
2. Classes XI & XII Rs.50/- p.m. per child
3. Physically handicapped
and Mentally retarded
Rs.100/- p.m. per
child
4. Science Fee, if charged
separately, in respect of
children studying in
Class IX to XII and
offering Science
subjects
Rs.10/- p.m. per child
A Government servant shall not be eligible to draw reimbursement of tuition
fees for a child for more than two academic years in the same class and in respect of not more
than 3 children at any time born upto 31.12.1987 and shall be restricted to 2 children born
thereafter.
A certificate shall be furnished as per rules at the time of preferring his initial
claim and thereafter in the months of March and J uly every year.
The concession will also apply to all Central Government employees without
any pay limits with effect from 01.12.1987.
Estt(AC) dt.31.5.89, No.120K/2/83/Estt(AC) dt.27.12.89, No.12011/2/88/Estt(AC) dt.3.8.90
and O.M.No.12013/1/90-Estt(AC) dt.8.5.92)
Para 479 Hostel Subsidy: A Government servant shall be eligible to the grant of a subsidy at
the rate of Rs. 300/- per month per child if he is obliged to keep his children in the Hostel of a
residential school away from the station at which he is posted and/or residing, because of his
transfer.
This shall be payable upto Higher Secondary and Senior Secondary stage and
shall not be admissible in respect of a child for whom Childrens Education Allowance is
drawn by a Government servant.
A certificate as per rules should be furnished at the time of preferring his
initial claim and thereafter in the months of March and J uly every year.
(Department of Personnel and Training O.M. No. 21017/1/97-Estt(Allow) dt.
12.06.98 read with O.M. No.s 21011/21/88-Estt(Allow) dt. 17.10.88 O.M.No. 12011/4/88-
Estt(Allow) dt. 31.05.89, No. 12011/2/83/Estt(Allow) dt. 27.12.89, No.
12011/2/88/Estt(Allow) dt. 03.08.90 and O.M.No. 12013/1/90-Estt(Allow) dt. 08.05.92)
156
Para 480 Festival Advance: Festival Advance is granted to the non-gazetted employees
whose basic pay does not exceed Rs.8,300/- p.m. for the festivals nominated by the Principal
Director of Audit. This advance is admissible for any one festival during the calendar year
and is recoverable in ten equal instalments. No Festival Advance for the next year will be
granted until the advance granted in the previous year is recovered fully.
Para 481 Cycle Advance: Cycle advance is granted to the non-gazetted employees whose
pay does not exceed Rs.5,000/- p.m. The exact date of receipt of the advance by the
employee should be intimated to the Administration Section immediately after the drawal.
The advance is recoverable in not exceeding 30 instalments. A second advance for the
purchase of a bicycle will not be granted to an employee until the completion of three years
since the drawal of the previous advance.
Para 482 Table Fan Advance: Group D staff who apply for fan advance should submit the
electricity bill (receipts) and also produce a certificate in the following form:
I certify that:
i. The portion which I occupy is electrified.
ii. A plug point exists for the use of a table fan.
iii. I do not have a fan in my house, and
iv. Sri/Smt._____________________ in whose name the electricity bill has been
made out is my house owner/father/wife.
The amount of advance which may be granted should not exceed Rs.1,000/- or
the anticipated price of the Table Fan, whichever is less.
A second advance for the purchase of a fan is not granted within ten years of the first one. To
ensure this, a record of the grant of the advance should be made in the service register of the
employee.
Para 483 Passes/PTOs: Privilege Passes/PTOs required by the Officers and staff of
Administration section and those working in the sections located in the Main Office annexe
building will be issued by the Asstt. Audit Officer (Administration Section). Other kinds of
passes required by officers and staff working in Divisions and sections located at
Headquarters, Secunderabad, will be issued by the Audit Officer (Administration) (See Para
235).
Para 484 Grant-in-aid to Recreation Club: Grant-in-aid for provision of amenities or
recreational or welfare facilities to the staff of the Central Government Departments will be
regulated in the manner indicated in Ministry of Home Affairs Office Memorandum
No.2/167/59-Welfare dated 10
th
March, 1961, as amended in Office Memorandums
No.24/2/62-Welfare dated 12.10.1962 and Memorandum No.2/8/67 - Welfare dated
11.5.1967 and Ministry of Finance (Expenditure) O.M. No.F(14)(2)-E-II(A)/89 dt.19.9.89.
Proposals for annual grant-in-aid should be formulated in accordance with the orders issued
by the Comptroller and Auditor General of India from time to time.
The Recreational Clubs should submit their accounts to the Principal Director
of Audit immediately after the close of the financial year in the form given in the Annexure
157
to Comptroller and Auditor Generals letter No.890-NGE/III/114-63 dated 23.4.1963 (duly
audited by their Internal Auditor).
The accounts should be accompanied by all vouchers. Such of the items of
expenditure which are not supported by vouchers should be certified by the
President/Secretary/Treasurer of the club to the effect that the expenditure was actually
incurred and it was not possible to get a receipt.
The accounts of the clubs should then be examined by an auditor nominated
by the Principal Director of Audit and signed by the auditor concerned in the prescribed
proforma.
Grant-in-aid for the first quarter of the year will be released in the beginning
of each financial year. The balance will be released only after the submission of the accounts
for the previous year.
An illustrative list of items on which expenditure can be incurred out of the
grant-in-aid is given in Ministry of Home Affairs O.M. No.2/14-61-Welfare dated 7.12.1961.
The grants are intended only for provision of amenities or of recreational or welfare facilities
and would not cover within their scope any compassionate objects such as death benefits.
No expenditure should be incurred out of grant-in-aid for organization of
excursion trips.
Principal Director of Audit is empowered to sanction recurring grants-in-aid
for provision of amenities to the recreation clubs on the terms and conditions stipulated in the
Ministry of Home Affairs O.M. No.2/167/59-Welfare dated 10.3.1961 subject to budget
provision having been made. Copies of the sanctions issued by the Principal Director of
Audit should be endorsed to the Comptroller and Auditor General. The expenditure on
grants-in-aid is chargeable to the head 216-Audit-grants-in-aid.
(Rule 153 - G.F.Rs. as amended from time to time).
Para 485 Audit Bulletin: The Audit Bulletin is issued by the Comptroller and Auditor
General quarterly. The material for incorporation in the Audit Bulletin is collected from
sections/divisions and a report furnished to Comptroller and Auditor General on the 10
th
of
the month following each quarter. The number of copies required should be intimated by the
15
th
of April every year.
Para 486 Monthly Review Report on the activities of Administration Section: The
Administration Section should submit a monthly review report on the activities of that section
in the proforma given in Annexure XIII to this chapter. This monthly report should indicate
the position obtaining on the last working day of that month and should be put up by 15
th
of
the following month to Principal Director of Audit through Deputy Director/Director.
(P.O.O. No.85 dated 11.10.1985)
(Para 221 A to D of G.F.Rs.)
Ch.V - Page 1 of 39
124
CHAPTER - V
GENERAL AUDIT PROCEDURE
501. General: The general principles and rules of audit applicable to different classes of
transactions laid down in the Manual of Standing Orders(Audit) and detailed instructions
relating to audit procedure contained in the Railway Audit Manual should be followed.
502. Programme of Audit: The programme and extent of audit are contained in the Secret
Memorandum of Instructions and Appendix to the Chapter to Railway Audit Norms
regarding extent of Audit(Railway Audit). The Secret Memorandum of Instructions which is
issued only to Section Officers/Asstt. Audit Officers and Branch Officers should be kept up-
to-date, based on the orders affecting the programme and extent of audit issued by the
Comptroller and Auditor General of India(Railways) from time to time even if no formal
correction slips are issued.
Principal Director of Audit is authorised to temporarily reduce the quantum of
audit where such reduction is considered necessary and to utilise the staff thus released on
special inspections, investigations or reviews. In addition to maintaining a record of such
relaxations as prescribed in Para 3 of the Secret Memorandum of Instructions, the Principal
Director of Audit is required to send a half yearly report for half year ending
September/March to the Comptroller and Auditor General of India by 15
th
October/15
th
April,
giving the following information.
a) Items for which relaxations have been ordered and the original and the
reduced percentages of audit.
b) The periods for which the temporary relaxation were made.
c) Reasons indicating the justification for the relaxation.
d) The staff rendered surplus due to the relaxations in terms of man-hours.
e) The manner in which the staff so released were utilised.
f) Brief particulars of the results achieved by the deployment of the staff.
503. Periodicity of Audit: Ordinarily monthly audit of vouchers/documents relating to a
month is done in the third following month, e.g., the audit of vouchers/documents for J anuary
is done in April. The following are the exceptions:
(Chapter X of Railway Audit Manual and Chapter III of Secret Memorandum
of Instructions).
1. Sanctions received in a month are audited during the following month.
2. Completion reports sanctioned in a month are audited during the following
month.
3. All items of Traffic Audit are done in the fourth following month excepting
warrants and credit notes and collected tickets which are checked
concurrently. Cases of special trains and field reports of Travelling Inspectors
of Station Accounts are also audited during the following months.
Ch.V - Page 2 of 39
125
4. Audit of quarterly/half-yearly items relating to a particular quarter/half year
should be completed before the end of the following quarter/half year. Audit
of yearly items should be taken up as soon as the relevant records/vouchers are
available and should be completed before the audit certificate on March
Accounts is given.
However, the quarterly audit of Stores and Works contracts relating to a
quarter should be reviewed during the 2
nd
following quarter leaving the quarter immediately
following the one in which the agreements have been entered into/purchase orders issued e.g.
documents relating to the quarter ending 31st December should be reviewed during the
quarter ending 30
th
J une (P.O.O. No.100 dated 11.3.1987).
The audit of quarterly, half yearly and annual items other than those which
have been divided into monthly units for being checked throughout the year should be
distributed evenly during the whole period.
Month of account for audit of annual items may be got selected by the sections
concerned. Annual items which are not dependent on the closing of the accounts of the year
should be taken up for audit sufficiently early.
504. Selection of documents for audit: Selection of paid vouchers should be made with
reference to the Abstract of Bills passed (Co.7). The month of account is taken as the month
in which Co.7 is prepared irrespective of the period to which the payment may relate. The
Co.7 number and the amount of the vouchers should be first listed separately for each item of
audit in the selection-cum-audit completion register, as prescribed in the Annexure I.,
indicating the total number of vouchers in each category, the extent of audit and the number
of vouchers to be selected and the register put up to the Asstt. Audit Officer/Branch Officer
for selection. While giving requisitions for vouchers, the particulars of Co.7 Nos. and date
should invariably be given so as to facilitate Accounts to make available the paid vouchers
without any difficulty. A few pages should be allotted for each item of audit in this register
and the selections for the same item from month to month should be obtained consecutively.
In respect of items of audit for which a unit or units are selected, a complete list of the units
may be entered at one place and the selections obtained against the units from month to
month. The selection of Units / documents for test Audit should be done by Branch Officer
of the section except in cases where it may not be possible for him / her to do so. In such
cases initial selection made by Asst. Audit Officer / Section Officer should be submitted to
Branch Officer.
The system of selection of vouchers for audit should involve minimum labour.
The selection for audit of vouchers which involves much labour and time, like work orders,
journal vouchers, sub-vouchers of J ournal Vouchers etc. should be made directly from the
registers/lists available with the Executive or Accounts Offices, without giving any indication
in these records of the items selected. In cases where the number of vouchers are too many
involving much clerical labour to note the particulars of vouchers in the selection-cum-audit
completion register for the purpose of obtaining selection, it will be sufficient to mention
only the total number of vouchers belonging to that category. In such cases, the connected
Accounts Office register/document should be submitted to the Asstt. Audit Officer/Branch
Officer for selecting the required number of vouchers. However, details of the vouchers
selected should be noted in the register.
Ch.V - Page 3 of 39
126
Selection of vouchers by the Asstt. Audit Officers/Branch Officers should be
completed well in time before the close of the month preceding the month of audit so that the
selected vouchers and documents can be collected in time.
505. Procedure for selection of Vouchers, Pay Bills etc.: In terms of Para 145 of the
Railway Audit Manual, the selection of vouchers should be done in such a way that all the
departments come under audit during the year according to the programme of audit.
If the number of vouchers to be audited works out to less than one at the
prescribed percentage, a minimum of one voucher should be selected. This principle should
be applied in the case of selection for current review and post review also.
The Section Officer/Asstt. Audit Officer should test check the correctness of
the listing of vouchers by Auditors/Senior Auditors once in a quarter and indicate the results
thereof in the Selection Register. It should be clearly recorded in the Selection Register in
respect of each item that "Listing of vouchers has been test checked".
506. Requisition for Vouchers: Requisitions calling for the vouchers and documents
selected for audit should be sent to the Accounts Office without delay over the signature of
the Section Officer/Asstt. Audit Officer. The requisitions should be prepared in duplicate by
the Auditor/Senior Auditor concerned, numbered serially and one copy thereof sent to the
Accounts Office. The office copies of the requisitions should be preserved for six years.
Requisition for departmental files should be sent over the signature of the Branch Officers,
endorsing a copy to the Accounts Officer. Whenever lists of outstanding vouchers are sent to
the Accounts Office, reference to the requisition should be given invariably. Even in cases
where files are called for directly from Executive Offices (e.g., contract agreements, P.Os.
regarding stores, compensation claims cases etc.) the Accounts Office concerned should also
be kept informed by endorsing copies of requisitions and reminders.
507. Collection of documents: Auditors/Senior Auditors and Section Officers/Asstt. Audit
Officers should keep a close watch on the receipt of vouchers contacting the supervisory staff
of the Accounts/Executive Office, if necessary. If the vouchers due for audit in a month are
not received by 20
th
of the month, a D.O. letter should be sent to the Accounts Officer over
the signature of the Branch Officer. Vouchers and documents requisitioned but not made
available for audit should be shown under "arrears due to non-receipt of vouchers from
Accounts Office" in the monthly Arrear Report. All sections/divisions should send along
with the Quarterly Arrear Report a list of vouchers not made available to Audit for more than
3 months, in quadruplicate. The Coordination section will compile a consolidated list of
vouchers not made available to Audit for issue of a D.O. letter from Principal Director of
Audit to the Financial Adviser and Chief Accounts Officer, South Central Railway,
Secunderabad, if considered necessary.
508. Completion of Audit: At the close of the month, the Auditor/Senior Auditor should put
his dated initials as proof of his having completed the audit, in the column provided in the
Selection-cum-audit completion register against the documents audited. A certificate of
completion of audit and review should be given in the Selection Register in the following
form:
Ch.V - Page 4 of 39
127
"Certified that
(i) selection of vouchers due for audit for the month has been completed, and
(ii) all vouchers, documents selected for audit and review have been audited and
reviewed and those required to be submitted to Section Officer/Asstt. Audit
Officer/Branch Officer for review have been submitted, except those which
have been shown as outstanding in the selection-cum-audit completion
register.

Section Officer/Asstt. Audit Officer"
All items for which general review has been prescribed excepting those to be
originally audited by the Section Officer/Asstt. Audit Officer/Branch Officer, may be
entrusted to the Auditor/Senior Auditor and concurrently reviewed by the Section
Officer/Asstt. Audit Officer. On completion of quarterly/half yearly/yearly items of audit, a
specific report should be put up to the Branch Officer indicating the results of audit for Post
Review by him.
509. Audit enfacement: Documents and vouchers audited should be enfaced "Audited" over
the dated initials of the person who originally audited them. The Section Officers/Asstt.
Audit Officers/Branch Officers should ensure by test check that this is being done. The
Provident Fund Ledger cards need not be enfaced with the stamp "Audited" but a record of
the Provident Fund cards audited should be maintained in the Selection Register. In the case
of 'tracing' of items from deduction lists into Provident Fund Ledgers, 'Audit of J ournal
Vouchers', and 'Temporary and Final Withdrawals', audit enfacement should, however, be
made. 'Works Registers', 'Revenue Allocation Registers', 'Passes and P.T.Os. Registers',
'Miscellaneous Advance and Deposit Registers' etc. which are reviewed partly or wholly,
should be stamped 'Audited' when their review is completed.
510. Selection-cum-Audit Completion Register: Each Auditor/Senior Auditor/Section
Officer/Asst. Audit Officer should maintain a Selection-cum-Audit Completion Register to
record the particulars of vouchers/documents to be selected for audit as mentioned in Para
504 and also to record completion of audit of selected vouchers in the prescribed proforma
given in Annexure I to this chapter. The details of vouchers selected for audit should be
noted in the register with full particulars. For example, in the case of salary bills and other
similar vouchers where the mode of selection of vouchers is based on units, the particulars of
vouchers audited in the unit selected should be noted with full particulars such as Au6 and
Co7 Nos. In the case of Accounts of Subscribers to Provident Fund, the particulars of
selected accounts need only be shown in the register.
If and when only a part of a voucher as in the case of Non-Gazetted Officers'
pay sheets is selected, in addition to number and date of the voucher, serial numbers/names of
the employees selected should also be indicated in the Selection-cum-Audit Completion
Register.
For parcel way bills and invoices, the name of the station and the printed
number of the way bill/invoice audited and for warrants and credit notes, the names of the
Ch.V - Page 5 of 39
128
stations and total number of vouchers together with the bill number and date should be
mentioned in the register.
511. Progress Report: Each auditing section should maintain a Progress Report Register in
the form given in Annexure-II to this chapter. The register should contain all items of audit
as per the programme of audit and those added from time to time. Separate sections should
be set apart for monthly, quarterly, half yearly and annual items. In respect of monthly items,
pages should be provided for 12 months to record details under Columns 4, 5 and 6. Under
Columns 4 and 6, the total number of vouchers/documents involved need only be indicated,
giving precise reasons for arrears and probable date of clearance in the 'remarks' column. If
arrears relate to more than one month, month-wise details thereof should be indicated. If the
month's work is completely done, the word "full" may be written in column (5). Under
monthly items of audit, the following items should also be entered.
Current Review : By Section Officer/Asstt. Audit Officer
Current Review : By Branch Officer.
Original Audit : By Section Officer/Asstt. Audit Officer
Original Audit : By Branch Officer
Post Review : By Section Officer/Asstt. Audit Officer
Post Review : By Branch Officer.
The register should be closed every month summarising the arrears as under :
Month Items
---------- -------------------------------
I. Arrears due to arrears 1/2007 28-M 30-M 40-M
in Accounts Office: 2/2007 - - -
II. Arrears due to non-
availability of vouchers - - - -
III. Arrears in Audit - - - -
-----------------------------------------------------
Total
-----------------------------------------------------
Auditors, Senior Auditors, Section Officers, Asstt. Audit Officers and Branch
Officers should initial at the end of each section viz., monthly, quarterly, half-yearly and
yearly.
512. Combined Monthly Arrear Report(CMAR): The combined monthly arrear report
should be submitted to the Branch Officer along with the Progress Report Register. The
salient features of the Combined Monthly Arrear Report are as under:
All the requisite returns/reports are incorporated in one form running to 18
pages and having VII sections. Twelve such forms shall be stitched together in a book form
and supplied to each section. The specimen forms of the CMAR are given in Annexure-III to
this chapter. Sections will make the entries in the Register each month by reference to the
Control Registers maintained by them and submit it to Principal Director of Audit through
Coordination Section on or before the 6
th
of the following month.
(Authority : Au/COR/XVII-2/Vol.X, dated 2/92.)
Ch.V - Page 6 of 39
129
On receipt of CMAR from all sections, Coordination section shall submit them
to the Principal Director of Audit with a covering note indicating therein the following
information/analysis in 5 Paras by the 16
th
of every month in respect of the arrear report
relating to previous month:
I.
(a) Total No.of CMARs due :
(b) Total No. of CMARs received:
(c) Sections//Units from which the CMAR is due:
II. Particulars of arrears in audit work(in mandays)
At the end of
-------------------------------------------
Previous month Current month
(a) Arrears due to arrears in
Accounts Office
(b) Arrears due to non-availability
of vouchers
(c) Arrears due to arrears in audit
N.B.: Section-wise details are to be given in an annexure attached to the note.
III. Instances of arrears of more than 10 days each :
Unit Arrears in Arrears due to Arrears inAudit
Accounts non-availability
Office of vouchers

IV. Delay in issue of inspection reports and arrears thereof. Each item of delay is to be listed
out.
Unit Office inspected No.of reports Arrears in
in arrears mandays

V. Position of outstanding references from Comptroller and Auditor General of
India(Railways) year-wise break-up to be given.
Unit Opening Balance Addition Clearance Closing Balance
The following course of action is required on the part of units/sections while
submitting the CMAR.
Section I (a): Under this section the clearance, if any, in respect of returns/registers etc. which
were shown as outstanding in the last monthly report, along with reasons for items still
outstanding should be furnished.
Ch.V - Page 7 of 39
130
(b): Returns/registers etc. not submitted/despatched on due dates together with the actual date
of submission/despatch and the reasons for delay in submission/despatch should be indicated.
The return viz., list of delayed and pending returns/registers introduced vide P.O.O. No.80
dated 2.9.1985 need not be submitted.
(c ) Occasional Returns: Information required by specified dates to be submitted to PDA/HQ,
which are due and not submitted/submitted late.
Section II Inward References: For this purpose, 'B' dak letters received upto 3
rd
Monday and
'A' dak letters and CAG references received upto 4
th
Monday of the month but not disposed
off till the date of submission of CMAR should be taken into account. 'A' and 'B' dak arrear
report and outstanding CAG references report need not be sent.
Section III (a) Pending case: Details of cases pending for over 6 months and the year-wise
break-up thereof should be furnished duly indicating the steps taken to clear them.
Section III (b) Reference Outward (ROC): Under this section outward references outstanding
for 6 months and more with the year-wise break up should be given. This information should
be furnished with reference to the position obtaining on the last working day of the month to
which the report relates.
Section IV Arrears in Audit Work: While furnishing the arrears against Section IV(A)(i) and
(B)(i) instances of arrears of more than 2 man days each should invariably be indicated.
Since details relating to completion of OA and PR are indicated in Section IV(B)(ii) of the
CMAR, no separate return on the subject need be submitted to Coordination Section along
with the monthly arrear report.
Section V (a): Progress of Inspection and (b) Issue of Inspection Reports: While furnishing
the information against various columns, arrears in the issue of inspection reports need to be
quantified. In regard to column (1) under V (a), inspections which have been postponed with
the prior approval of Principal Director of Audit need not be exhibited in the CMAR.
However, arrears, if any, in this regard as on 31st March of a year, should be shown in the
CMAR for March and subsequent months till the same are cleared. Computation of internal
arrears in terms of mandays in respect of inspection reports not issued within one month
should be done with reference to the actual work load. The period of one month for issue of
Inspection Report from the date of completion of audit is to be computed as under :
5 working days for the receipt of the draft report from the Audit party.
5 working days for the section to submit the report.
4 working days for the Audit Officer/Senior Audit Officer to pass the
report.
10 working days for typing and issue of the report.
The arrears on this account may be shown as internal arrears under Section V
(b) of the CMAR.
(c ) Details of offices against which NIL Reports are proposed and approved.
Ch.V - Page 8 of 39
131
(CAG's letter No.799-TAI/83-83 dated 18.7.1983, No.343-TAI/83-83 dated
16.3.1985 and No.1108-Audit.II/83-83 dated 17.7.1986).
Section VI (I to vi) Outstanding Part. I AIRs / Test Audit Notes and Special Letters: Under
this sub-section, Inspection Reports Part I, Test Audit Notes Part I and Special Letters
outstanding on the last day of the month together with year-wise break-up money value, case
number and the level at which latest reminder issued should be furnished.
Section VII (1) & (2) Under this section, outstanding inspection reports - Part II and test audit
notes - Part II on the last day of the month need be furnished, together with the year-wise
break-up, money value etc.
Summary of arrears section-wise (Section IV A(i), A(ii), IV (B), V (a), V (b)
under internal and external categories should be given.
The CMAR has to be submitted by Reports section as well after filling up the
relevant sections therein.
(P.O.O. No.91 dated 7.7.1986).
513. Quarterly Arrear Report: Arrear Report in computerised format for Quarters ending
30
th
J une, 30
th
September, 31st December and 31st March are due for submission to C&AG
by 20
th
of J uly, October, J anuary and April respectively. The Report in the under-mentioned
formats should reach COR by 6
th
of each Quarter for consolidation and onward transmission
to Headquarters positively within the due date.
MIS AUD - I (Annual Statement to be sent in October every year).
MIS AUD - 2R, MIS AUD - 3, MIS AUD - 4, MIS AUD - 5C,
MIS AUD - 7C, MIS AUD - 11, MIS AUD - 12, MIS AUD - 13,
MIS AUD - 14 & MIS AUD - 15.
Authority : 1) C&AG's Lr.No.1314-Audit-II/105-90 dt.11.10.91.
2) C&AG's Lr.No.430-Audit-II/105-90 dt. 5/93.
3) C&AG's Lr.No.159-RAI/17-7/92 dt.15.9.93.
514. Original Audit: Section Officers/Asstt. Audit Officers/Branch Officers incharge of
auditing sections are required to do original audit work amounting to not less than 2 days'
work in a month as part of their duties, the percentage of check being that prescribed in the
Secret Memorandum of Instructions. Detailed records of vouchers/documents reviewed and
the man-hours thereof should be recorded in the Original Audit Register.
(Paras 140 and 141 of Railway Audit Manual and Para 6 of Secret
Memorandum of Instructions).
For this purpose, separate lists of 12 units of Original Audit work are to be
framed by the following sections for obtaining the approval of Principal Director of Audit in
J anuary every year.
i. Traffic Audit Coaching (TAC)
Ch.V - Page 9 of 39
132
ii. Traffic Audit Goods (TAG)
iii. Construction Audit
iv. Books and Budget Audit(Headquarters)
v. Workshop and Stores Audit
vi. Establishment Audit(Headquarters)
vii. Expenditure Audit(Headquarters)
viii. Stores Audit(Headquarters)
Selection of OA and PR units has been centralized and Headquarters section
have been entrusted with taking selection each month and to advise the Units concerned.
Accordingly all the units for OA and PR of each month will be selected by Sr.Au.O. / Au.O.
of EHQ, XHQ, W&S/LGD and CON/SC for advising their corresponding Auditing Units.
On completion of OA & PR the results thereof are to be advised by these units to their
corresponding Headquarters section who would consolidated and submit to PDA by 10
th
of
the following month through COR section. While forwarding the list of OA & PR each year
to COR section, for getting approval of PDA, these Headquarters section should ensure that
all items of Audit, laid down in SM I, OM and RAM and other local orders have been
covered and those which exclusively pertain to Divisions / Units. Annual and other
periodical item grouped separately and their Post review arranged for as and when the audit
of each is completed. (Para 50 SMI)
Coordination section should review the lists of original audit and revise the
same from time to time as required in Para 141 of Railway Audit Manual and Para 6 of
Memorandum of Instructions in the light of local conditions and the relative importance of
the various items of work allotted to the section.
515. Current Review: Audit work done by Auditors and Senior Auditors/Section
Officers/Asstt. Audit Officers should be current reviewed by Section Officer/Asstt. Audit
Officer and Branch Officer respectively. As soon as audit is competed by the Auditors, the
Section Officer/Asstt. Audit Officer should obtain selections for Current Review from the
Branch Officer. The Current Review Registers should be treated as 'Secret' and kept in the
custody of the Section Officer/Asstt. Audit Officer/Branch Officer. The register should be
maintained in the proforma given in Para 162 of Railway Audit Manual. Separate
pages/sections should be allotted in this register, for different items of work entries for the
same item being made continuously from month to month. Besides the columns given in the
proforma, an additional column should be opened after column 2 to indicate page number of
Selection-cum-Audit completion register to facilitate cross reference.
As and when original audit is completed by the Section Officer/Asstt. Audit
Officer, the vouchers/documents and the register containing the original audit remarks should
be submitted to the Branch Officer for current review. Items selected for current review,
particulars of vouchers current reviewed and current review remarks of the Branch Officer
will be noted in the Current Review Register of the Branch Officer.
516. Post Review: Every section should have a separate list of periodical items due and the
current review, post review should be arranged as and when audit of these items is
completed. A specific report regarding results of quarterly, half-yearly and annual items
should be submitted to the Branch Officer for Post Review by him. These items are not to be
included in the list of items for monthly Post Review. Selection of unit for post review by
Ch.V - Page 10 of 39
133
Section Officer/Asstt. Audit Officer and by Branch Officer will be made by the Branch
Officer of the concerned Headquarters section. Selection for original audit, post review by
Branch Officers is done by the Branch Officers themselves. In the event of Post Review of
any one of the sub-units of a unit becoming infructuous owing to no vouchers having been
audited in the month to which the Post Review relates, no alternative selection should be
made for the sub-unit. Instead, the vouchers audited in the earlier months preceding the one
to which Post Review related may be taken up duly recording the facts in the Post Review
Register. In case, no vouchers are available for Post Review in the preceding months also,
the Post Review should be taken up and completed in the subsequent months when the
vouchers of that category come up for audit. The non-completion of a sub-unit in the original
month of selection will not be considered as arrears in the Post Review in that month.
One half of the Post Review done by the Branch Officer should be devoted to
a recheck of the current review done by the Section Officer/Asstt. Audit Officer.
In terms of Para 154 of Railway Audit Manual, the entire Audit work done in
a section should be Post Reviewed by Section Officer/Asstt. Audit Officer of the section
concerned. The register should be put up to the Principal Director of Audit/Director/Deputy
Director only when important defects are noticed.
In addition to the normal Post Review, special Post Review is to be done
occasionally in terms of Para 162 of Railway Audit Manual. The section selected and the
Section Officer/Asstt. Audit Officer nominated for such Post Review by Principal Director of
Audit will be intimated by COR Section in the first week of the month in which the Post
Review is to be done.
The results of Post Review carried out in terms of Para 162 of Railway Audit
Manual will be submitted to Principal Director of Audit (through Branch Officer concerned)
in the Post Review Register maintained in the respective sections soon after completion of the
Post Review in all cases.
The existing procedure of selection of Post Review units and vouchers
therefrom by Branch Officers of the respective sections will be applicable in toto to Post
Review arranged by Principal Director of Audit.
The Post Review Register should be maintained in the proforma given in Para
162 of Railway Audit Manual. The original Audit/Current Review/Post Review Registers of
Branch Officers and Original Audit/Current Review Registers of Section Officers/Asstt.
Audit Officers should be submitted to Principal Director of Audit/Director/ Deputy Director
only when important defects are noticed. The upto-date position of arrears in Original
Audit/Current Review/Post Review and clearance thereof should invariably be indicated in
the record of submission of the registers monthly. However, these registers should be put up
to Principal Director of Audit half-yearly by 10
th
of April and October each year bringing out
the extent of arrears, if any.
In so far as Sr.Audit Officers/Audit Officers/Asstt. Audit Officers at out-
stations are concerned, they will submit these registers to Deputy Director/Director/Principal
Director of Audit during their local visits, in addition to their submission to Principal Director
of Audit half yearly.
134
517. Raising and pursuance of objections: 1(a): The instructions contained in Chapter XXII
of the Railway Audit Manual and Chapter I of Section VII of the Manual of Standing Orders
(Audit) should be followed.
1(b): Objection having a high money value as well as cases involving serious
procedural irregularities having considerable financial impact and D.P. potential are to be
taken up through Special Letters categorised as 'A'. While submitting the proposals to
Deputy Director/Director for issue of Special Letters, Branch Officers must specifically
indicate the grounds on which a particular objection has been recommended for issue as a
Special Letter falling under Category 'A'. It should be ensured that objections proposed to be
included in Special Letters Category 'A' are thoroughly examined and supporting documents
are kept in the file to facilitate expeditious issue of the same. All Special Letters Category
A (Potential Draft Para cases) should be routed through Sr. Audit Officer/Reports who
submits the same after examination to PDA through Group Officer. The covering letter for
issue of Special Letter Category 'A' should be in the format(Annexure-IV).
With regard to Category 'A' Special Letters proposed by outstation
Divisions/Units the recommending Division/Unit should indicate the No. to be assigned to
the proposed Special Letter so that, after approval, copies to be issued to the FA&CAO/HOD
and respective DRMS can be straightaway issued by the PAs to Group Officers. The
Division's/Unit's file with office copy of the Special Letter and copy intended for Accounts
Officer of the Division/Unit will thereafter be duly returned to the Division/Unit concerned.
The Divisional Audit Officer/Unit Audit Officer will then sign the copy meant for his
counter-part in Accounts and issue the same forthwith. These Special Letters relating to
Divisions/Units should continue to be included in the objection register of the Division/Unit
Accounts Office. As regards consolidation of objections/irregularities of similar nature, the
following procedure is to be followed.
In order to avoid duplication of the Special Letter on the same subject, copies
of all the Special Letters (Category 'A') are to be sent to Headquarters section with a view to
projecting the entire position obtaining on the Railway and also on account of fixation of
monetary limit for processing into D.P. In the case of any individual irregularity, if the
Division/Unit had raised any objection based on the extant orders and rules and the matter
could not be settled locally, such cases may be referred to the Headquarters Section
concerned which, after examination of the position on the Divisions/Units, may take up the
issue at Headquarters level for following a uniform procedure on the entire Railway.
Copies of Special Letters Category 'A' should be endorsed to COR Section by
all sections to enable them to monitor the progress of such Special Letters COR Section will
maintain a record and submit the Register by 10
th
of every month to Principal Director of
Audit, through Director/Deputy Director. Copies of the Special Letters Category 'A' should
also be endorsed to Sr.Audit Officer/Audit Officer(Reports), PAs to Director/Deputy
Director, besides COR Section and to Headquarters Section concerned when required.
Replies received to the Special Letters should be examined and the cases
processed for DPs. Cases where no reply/remarks are received within the stipulated period
should also be processed for DPs. In all such cases, draft DPs may be submitted to Reports
Section through the Group Officer.
Objections of lesser importance but worth issuing as Special Letter 'B' may be
issued by the Branch Officers in the form of D.O. letters after getting the same approved by
135
Principal Director of Audit. The Special Letters Category 'B', Part I Inspection Reports and
Part I Audit Notes should be pursued strictly on the lines envisaged in Para 517.5 of the
Office Manual.
All outstanding objections over 6 months old have to be specifically brought
to the notice of HOD/Divisional Railway Managers with copies to the FA&CAO/Sr.DAO
concerned by the Director/Deputy Director in proforma in existence, through D.O. letter for
approval and issue by 10
th
J uly and 10
th
J anuary every year in respect of the position
outstanding on 30
th
J une and 31st December. Similarly, all objections outstanding over 1
year as on 31st March, should be listed in Proforma already prescribed and the same sent to
COR Section by 10
th
April for issue of a D.O. letter from Principal Director of Audit to
General Manager. COR Section will consolidate the outstanding objections and propose
D.O.letters by 20
th
April. While submitting the D.O. letters for approval of Group Officer as
well as in the reports to be sent to COR, the action taken in compliance with General
Manager's instructions for clearance of outstanding Audit Objections contained in D.O.
Lr.No.A/EF/AOO/Vol.IV, dated 25/30.9.91 circulated under COR Section's
Lr.No.Au/COR/DP/III/6/Vol.X dated 28.1.92 should also be indicated.
In the case of reviews (Local and Central) the existing procedure of issuing
them straightaway as DPs to Zonal Railway Administration and Railway Board with the
approval of Principal Director of Audit will continue.
Authority : 1) Au/COR/I/Vol.III/435, dt.9.2.89.
2) -do- /72 dt.9.5.91
3) -do- dt.13.8.91
4) -do- /Vol.IV dt.5.2.92
5) -do- dt.13.4.92
6) -do- dt.12.3.93
7) P.O.O.No.115 dt.1.8.1990.
8) Au/Reports/11-10/2006-07 dated 18.10.2006
2. The objections noticed by the Auditor/Senior Auditor in the course of audit
should be put up to the Section Officer/Asstt. Audit Officer in the form of an audit note along
with the relevant documents. After scrutinising the points with reference to the documents,
the irregularities noticed which are of minor nature requiring some clarification such as
calling for certificates, receipt schedules and other wanting documents may be included in a
Draft Audit Note and issued by the Section Officer/Asstt. Audit Officer vide Para 466 of
Railway Audit Manual. Part-II Audit Notes/Inspection Reports are issued over the signature
of S.O./A.Au.O after obtaining the approval of B.O. Part-I Audit Notes/Inspection
Reports/Special Letters may be put up to the Pr.D.A. for approval. Only very important
objections which are likely to yield material for Railway Audit Report should be generally
taken up through special letters. In case the irregularities pointed out through Rough Audit
Notes are not set right/replies not received within a month, the matter should be pursued
vigorously at appropriate higher level with the Accounts Office.
3. Items of objections in Part II Audit Notes and Inspection Reports wherein
adequate action has been taken by the Accounts Office may be removed from the register of
outstanding objections by the Section Officer/Asstt. Audit Officer. All Part II Audit Notes
should be reviewed half-yearly with reference to the Accounts Office files and the cases
where adequate action has not been taken pursued with the Accounts Officer. Cases of undue
delay in disposal of important objections should be brought to the notice of the Principal
136
Director of Audit. As in the case of all periodical items, review notes covering the half-
yearly review of Part II objections may be submitted to the Branch Officer for his scrutiny in
terms of the provisions contained in Para 471 of Railway Audit Manual.
4. All the proposals for closure of Special Letters category 'A' & 'B' which are
subsequently issued as Draft Paras or where recoveries pointed out therein have been
effected/agreed to be effected and complete final action has been taken by the Railway
Administration should be put up for approval of Principal Director of Audit in the relevant
file with a record note explaining the reasons why they are being considered for final
settlement.
All Part I Inspection Reports and Audit Notes where the Railway
Administration has taken appropriate action may be closed by the Branch Officers themselves
as per the procedure in vogue.
(P.O.O. No.136 dated 22.6.1998).
5. To ensure prompt finalisation of the objections, all special letters should be
issued only as D.O. letters. In respect of Potential Draft Paragraph cases, special letters and
other important objections, D.O. reminders should be issued monthly, the first 3 at Branch
Officer's level, next two at Director/Deputy Director's level and thereafter at Principal
Director of Audit's level. Once the correspondence has been taken up at a higher level, it
should not be brought back to lower level (Para 1 of the Minutes of the Meeting held between
Principal Director of Audit and Branch Officers on 29.1.1987 and 30.1.1987).
518. Recovery Register: Auditing sections should maintain a register to note down
particulars of recoveries effected or agreed to be effected by the Railway Administration at
the instance of audit. The register should be maintained in the following format:
137
1. Name of the Unit
2. Amount pointed out by Audit for recovery
a. As a result of audit of transactions checked by Accounts
b. Other than those mentioned in Column 2
3. Amount actually recovered or agreed to be recovered
a. As a result of audit of transactions checked by Accounts Col. 2
i. Amount actually recovered
ii. Not yet recovered
b. Other than those mentioned in Col. 4 & Col. 5
c. Amount recovered as a result of further review by Accounts
4. Total
a. Amount actually recovered (Col. 4 +6 +8)
b. Not yet recovered (Col. 5 +7 +9)
5. Amount converted into crore
(Annexure enclosed)
Whenever advice of closure of an audit note is issued to the Accounts Office,
the total amount of recovery noted in the register should also be mentioned. At the end of the
financial year, the total amount recovered or agreed to be recovered should be got accepted
by the Accounts Department and a statement of recoveries effect may be furnished to COR
section before 1
st
week of J une in the format given in Annexure VI, duly vetted by Accounts.
While forwarding the statement of recoveries, sections/units offices may also
furnish a brief narration in an annexure of each of the more important nature of the cases (say
of more than Rs. 25,000/- each) indicating the nature of irregularity, dates of the original
objection and acceptance and the period to which the recovery relates, duly vetted by the
Accounts counterpart. The statement should be signed by the Audit Officer/Sr.Audit Officer
and the Accounts Officer before forwarding the same to COR section.
Important and interesting results of audit should be put up along with the file
to the Principal Director of Audit through the 'Coordination' section in the form of a Para for
the Register of Audit Activities' for approval.
519. Review of working of the Accounts Department: The review of Accounts Office work
will be carried out personally by the Section Officer/Asstt. Audit Officer incharge of the
section along with audit of March Accounts with reference to the instructions contained in
Para 135 of Railway Audit Manual, Para 56 of Secret Memorandum of Instructions regarding
Extent of Audit (Railway Audit). The points noticed should be recorded in the register
prescribed for this purpose vide Annexure V and submitted to the Branch Officer by 30
th

September every year. The points considered important and to be taken up through Special
Letter/Part.I Audit Note should be incorporated in a note to be submitted to Deputy
Director/Director/Principal Director of Audit for approval and taken up with the respective
138
Accounts counter parts. After issue of the objections, reference to Audit Note No./Special
Letter and date should be indicated against various items in the Register. The Branch
Officers should then send to COR Section, a report by 15
th
October every year in the
proforma prescribed in Para 56 of Secret Memorandum of Instructions bringing out whether
there have been any major system failures in internal check of any other items which are
considered important to be reported to Financial Adviser and Chief Accounts Officer at
Principal Director of Audit's level.
The Branch Officer should also furnish a certificate indicating that the review
done for the year covers all the items prescribed as per Railway Audit Manual, Secret
Memorandum of Instructions and provisions of Para 519(3) O.M. & any other instructions
issued by this office from time to time. Important items from the registers should also be
considered for inclusion in the efficiency of internal check vide Para 1303 of O.M.
At the commencement of every year, a list of all items to be seen in the course
of the annual review of Accounts Office work should be compiled by the section concerned
and noted in the Register of Review of Accounts Office work. The Branch Officer should
ensure that this list not only covers all items which should be reviewed in the course of this
work but also that all the sub-sections of the Accounts Office concerned are brought within
its scope.
The list of items should be compiled with reference to the Accounts Office
Manual wherever necessary and P.O.Os. issued by the Financial Adviser and Chief Accounts
Officer.
The review should also cover an examination of the following items in
addition to the items given in the Annexure to Chapter V of the Memorandum of Instructions.
i. Register of Audit Notes and Inspection Reports.
ii. Register to watch the expenditure on temporary Group 'D' posts created by
Divisional Railway Managers without financial concurrence under powers
delegated vide item i(b) of Part 'H' of Schedule of Powers.
iii. Railway Board's Inspection Reports.
iv. Register of Review of Permanent Sanctions (Para 809-AI).
v. Accounts Office Balance Sheet (Para 2923 of the Indian Railway Code for the
Accounts Department).
vi. Review of registers containing the lists of specimen signatures of the Gazetted
Officers authorised to sign the bills.
Balance Sheet for one month should be checked with initial records in addition to
general review, to ensure that the postings are correct. It should also be seen that
amounts recoverable have been billed for correctly and promptly and suitable action
has been taken for the realisation of old outstandings.
vii. Review of Bills Recoverable Register (Paras 1139 and 1140 of the Indian Railway
Code for the Accounts Department).
139
This register should be reviewed to ensure that bills for dues recoverable from
different parties have been preferred timely and correctly and outstandings do not
relate to very old periods. The postings should also be checked with initial records.
viii. Recovery of electricity charges from staff and outsiders.
The working of the revised procedure for watching recovery of electrical energy
charges, introduced in Railway Board's letter No.63/AC-II/Dir(Spl)/22, dated
29.1.1966, should be examined critically to see that dues are not allowed to
accumulate and that the system is working efficiently.
ix. Review of working of the revised system of accounting introduced by the Railway
Board.
It should be examined whether the revised system of maintaining Traffic Accounts,
Rent Rolls, Rent Return Account of Residential Buildings and of watching
recoveries of advances, is working efficiently and that there are no loop holes by
which some major omission/lapses could occur or remain unnoticed.
In respect of items for which the extent of internal check has been relaxed by the
Railway Board, it should be seen that such relaxation has not affected the efficiency
of internal check.
x. Important cases should be reviewed in the course of annual review of the working
of the Accounts Office. It should also be ensured that post check of paid bills (c.f.
Para 818-AI) has not fallen into arrears. (ADAI(R)'s letter No.1458-RAI/8-5/67
dated 5.5.1967).
xi. Review of the arrangements in the Accounts Office for supply of P.O.Os. J oint
Accounts and Executive P.O.Os. etc. issued during the year to Audit and to ensure
whether those issued during the period under review have actually been received
and scrutinised in 'Audit'.
On receipt of reports from all sections, COR section will examine and submit
a note to the Deputy Director/Director/Principal Director of Audit indicating the important
points which may be considered for being taken up with Financial Adviser and Chief
Accounts Officer.
During internal audit of the Sections, the Internal Audit Party should also
scrutinise the Register of Review of Accounts Office work besides other registers maintained
in the sections to see whether all the items, as prescribed, had been covered and point out
omissions to the notice of section. Common items of omissions noticed will also to be
circulated to all units for remedial action.
520. Review of Register of Losses: Register of losses maintained in the Accounts Office
should be reviewed to the extent prescribed. Copies of sanctions of the General Manager for
write-off of losses irrespective of the subject to which they relate will be received by this
office either from the General Manager or the Department obtaining the General Manager's
sanction according to single file system.
140
'Write off' sanctions received should be noted in a separate register year-wise
to facilitate checking whether all write off sanctions issued in a year are included in the
Appropriation Accounts.
Delays in receipt of reports or 'write off' sanctions should be taken up
promptly with the Administration.
521. Office Manuals and Procedure Office Orders and corrections thereto: The scrutiny
of the P.O.Os. issued by the Financial Adviser and Chief Accounts Officer will devolve on
the corresponding Headquarters Audit Section. P.O.Os. issued by the Unit Accounts Officers
will be scrutinised by the Unit Audit Officers concerned.
It should be watched that Procedure Office Orders issued by the Accounts
Offices are received in the Audit Offices without omission.
141
COVER:
SECUNDERABAD

(______________) Section

Selection-cum-Audit Completion Register
To be put up monthly to B.O. on 10
th
.
Authority: Para 510 of the Office Manual
To be preserved for 5 years
RECORD OF SUBMISSION:
Month Date of Selection Certified that all Initials of
of Submi- of vouchers vouchers/docu- -----------------
Audit ssion due for audit ments selected for Ar/Sr.Ar/S.O.
(due date for the month audit and review /A.Au.O./
is 10
th
) has been have been audited B.O.
completed and reviewed and
----------------- those required to be
Dated initials submitted to SO/
of Ar./Sr.Ar./ AAuO/BO have been
S.O./A.Au.O. submitted except
those which have
been shown as
outstanding in the
register.
1. 2. 3. 4. 5.
INDEX
Sl.
No.
Particulars of Item Page No.

1-M
2-Q
3-HY
4-Annual
142
Annexure I (Para 510) Contd.
AUDIT ITEM:_________________
Extent of Audit:
Authority:
Month Month Particulars of vouchers, documents etc. Details
of of Au.6 Co.7 Amount of vrs.
accounts Audit No. & No. & select-
Date Date ed
(1) (2) (3) (4) (5) (6)

Date of completion Dated initials of Remarks
of Audit Auditor/Sr.Auditor
(7) (8) (9)

143
Annexure II (Para 511)
COVER:
SECUNDERABAD

Section:_______________
Progress Report Register
Authority: Para 511 of the Office Manual
To be put up to B.O. monthly on 3rd.
(To be preserved for 2 years)
PROFORMA:
Sl. Autho- Parti- Arrears Work Arrears Remarks
No. rity culars at the done at the
of end of the during end of the
audit previous the current
items month month month
1. 2. 3. 4. 5. 6. 7.

1 - M
2 - M
Etc.

Current Review: by Section Officer/Asstt. Audit Officer
Original Audit: by Section Officer/Asstt. Audit Officer
Original Audit: by Branch Officer
Post Review: by Section Officer/Asstt. Audit Officer
Post Review: by Branch Officer

Note: In respect of quarterly, half yearly and yearly items, Cols. 4, 5 and 6 should indicate
position for quarterly, half-yearly and yearly as the case may be.

144

MONTHLY REPORT OF THE STATE OF WORK IN _____________________ SECTION/DIVISIONAL AUDIT OFFICE
OR THE MONTH OF ________________

(a) Items of work/return etc. shown as in arrears in the last monthly report(see section II) and the extent to which they have been
cleared, with reasons for items still outstanding:

Nature of arrears/name of return Due date Actual date of despatch Reasons for delay in respect of items still
in respect of items cleared outstanding

(a) Returns/registers not dispatch /submitted/received or dispatch d/submitted/received late during the month:

Name of return/register To/from Due date Actual date Reasons for delay and probable date of
whom due of dispatch/ dispatch/action taken to expedite the receipt
receipt

Occasional Returns due in the month of not submitted / submitted late in the month
Details of outward references outstanding for 6 months and more and action taken for their clearance:
Year No. of items Action taken for clearance

145
-2-
II. Inward References:

Sl. Particulars Ordinary CAG/Rly DETAILS OF 6 & 7
No. letters Bd. Lrs. ------------------------------------------------------------------------------
(B Dak) (A Dak) Sl. Letter No. From whom Subject Reasons
No. and date received for delay in
disposal

01. No. of letters outstanding
as per last report.
02. Total number of letters received
during the month.
03. TOTAL (1 +2)
04. No. of letters disposed of
05. Balance Outstanding
06. Number of letters outstanding
for more than 1 month, 2 months,
3 months etc.
07. No.of CAGs letters for which
final replies are yet to be sent
08. Particulars of outstanding tour
notes of Principal Director of Audit/
Director/Deputy Director

146
-3-

III (a) Pending Cases:
(a) Outward References:

(Details of cases pending over 6 months and action taken to clear the cases are to be indicated):

IV. Arrears In Audit Work:

A) External

i) Arrears due to arrears in Accounts Office: Total Mandays ________________________________

Particulars Month of Month of No. of Arrears in Probable Reasons for non-clearance and efforts
Account Audit vouchers/ terms of date of made
(Year-wise breakup documents mandays clearance
may be indicated)

147
-4-

ii) Arrears due to non-receipt of vouchers/documents. Total Mandays ________________________

Particulars Month of Month of Number of Arrears in Probable Reasons for non-clearance and efforts
Documents mandays clearance

(Year-wise and item-wise details may be indicated below together with man-days against each item)

148
-5-

B) Internal: Total Man-days: ___________________________

i) Detailed report on each item of arrears(i.e. Inspections and Central Audit in Mandays may be furnished here).

ii) Date of selection/completion of Original Audit/Post Review by B.O./A.Au.O/S.O.

Officer doing Original ORIGINAL AUDIT POST REVIEW
Audit/Post Review -------------------------------------------------- --------------------------------------------------
Date of Selection Date of Completion Date of Selection Date of Completion

Audit Officer/Sr.Audit Officer
Section Officer(I)/
Asstt. Audit Officer(I)
Section Officer(II)/
Asstt. Audit Officer(II)
Post review in terms of
Para 152 of Railway Audit Manual

149
-6-

I. Inspections:

a) Progress of Inspection:

No. of Inspections Inspections to be conducted Inspections actually completed No.of Inspections Reasons
in arrears on the during the month as per during the month in arrears on the for the
last day of the approved programme -------------------------------------- last day of the arrears
previous month ----------------------------------- Number Name of Offices month(1+2-3)
Number Name of
Offices
1 2 3 4 5

150
-7-

b) Issue of Inspection Reports:

Arrears in the Reports falling due to be issued Dates of Date of Date I.R. Date of Brief
issue of Inspection during the month in respect of Audit submi- passed issue reasons
Reports on the last the offices inspected conducted ssion of by G.O./ of I.R. for the
day of the previous -------------------------------------- I.R. to Pr.D.A. delay
month Number Name of Offices Group
Officer/
Pr.D.A.

151
-8-

II. (a) Outstanding Part.I Inspection Reports, Part.I Test Audit Notes and Special Letters
(N.B.: Additional sheet may be attached if the space provided is found to be insufficient).

i) Part.I Inspection Reports:

Year Opening Issues Details of the offices on which Closure Closing Balance Money
Balance -------------- the Part.I Inspection Reports ----------------- ------------------- Value (in
----------- No. Paras issued in the month to be indicated No. Paras No. Paras lakhs of
No. Paras ------------------------------------------ Rupees)
Name of Office

152
-9-

Case No. Date of latest reminder/ Level at which reminder
Interim reply received was issued

153
-10-

ii) Part.I Audit Notes:

Year Opening Issues Closure Closing Money Case Date of latest reminder
Balance Balance Value No. and level at which issued/
-------------- --------------- --------------- ------------------ (in lakhs Interim reply received.
No. Paras No. Paras No. Paras No. Paras of Rs.)

154
-11-

iii) Paras of Part-I Inspection Reports/Audit Notes closed during the month:

No. assigned to each Para Money value of each
closed during the month Para closed during
while issuing the original the month
objection

a) Part-I Inspection Reports.

b) Part-I. Audit Notes:

155
-12-

(iv) Special Letter Category - 'A':

Year Opening Issues Closure Closing Money Case Status of the case
Balance Balance Value No.
-------------- --------------- --------------- ------------------ (in lakhs

156
-13-

(v) Special Letters Category - 'B':


157
-14-

(vi) Paras of Special Letters closed during the month:

objection

a) Special Letters/Category 'A'

b) Special Letters/Category 'B'

158
-15-

VIII (b) Outstanding Inspection Reports (Part-II) and Test Audit Notes(Part-II):

INSPECTION REPORTS(PART-II):

Period Opening Issued Cleared Closing Money Action taken for the clearance.
Balance Balance Value
-------------- --------------- --------------- ------------------ (in thousands

TEST AUDIT NOTES(PART-II):

Period Opening Issued Cleared Closing Money Action taken for the clearance
-------------- --------------- --------------- ------------------ (in thousands

159
-16-
Information of arrears (in mandays)

Section Internal Increase (+) External Increase (+)
No. ------------------------------- Decrease(-) ------------------------------- Decrease(-)
Arrears at the end of Arrears at the end of
Previous Current Previous Current
M / Qr M / Qr M / Qr M / Qr
VIA(i)
VI A (ii)
VI B
VII (A)
VII (B)

I certify to the best of my knowledge and belief that the work is upto-date and test audit and other work required to be completed upto the
end of the month/quarter has been completed with the exception of the arrears detailed above.

Section Officer/ Signature of Divisional Audit Officer/
Asstt. Audit Officer Audit Officer/Sr.Audit Officer
Dated:

S.O./A.Au.O.(COR) Senior Audit Officer(COR)

Deputy Director/Director Principal Director of Audit

160
Annexure IV' to Para 517
FORMAT FOR ISSUE OF SPECIAL LETTER - CATEGORY 'A'
(Not to be typed in the fair copy)
Dated :
D.O.No.Au/
Sub:-
Dear Shri
Please find enclosed a special letter on the subject mentioned above.
2. The case relates to - (Brief Summary of the objection to be incorporated).
3. As the point raised in the special letter is being considered for comment in the Audit Report, I shall be grateful if you kindly arrange to
have the Special Letter examined and furnish your remarks within two months from the date of issue of the special letter. If no reply is received within
the above stipulated period, it will be presumed that the facts, figures and comments contained in this special letter have been accepted as correct by the
Railway Administration and the case will accordingly be processed further as draft paragraph.
4. A copy of this special letter is also being forwarded to Shri__________________(Name of the F.A.&.C.A.O. to be filled in),
S.C.Railway, Secunderabad and to Shri ____________(HOD/DRM/SCR) _____________ for necessary action.
Yours sincerely,

PRINCIPAL DIRECTOR OF AUDIT
Shri___________________, General Manager,
South Central Railway/SECUNDERABAD.
Copy together with a copy of the Special Letter mentioned above, forwarded for information and necessary action to:-
1. Shri__________________(Name of F.A.&.C.A.O. to be filled in)
2. Shri__________________(Name of HOD to be filled in)
3. Shri__________________(Name of DRM to be filled in)
DEPUTY DIRECTOR/DIRECTOR

161
Copy to________________________(Name of concerned unit Accounts Officer to be filled in) - for information and necessary action.

SR.AUDIT OFFICER/AUDIT OFFICER
Copy to Sr.Au.O./COR, S.C.Railway/Secunderabad for information.
Copy to Sr.Au.O./Reports, S.C.Railway/Secunderabad for information.
Copy to PA to Deputy Director/Director for information.
Copy to concerned HQrs. Section(whenever required).

SR.AUDIT OFFICER/AUDIT OFFICER
162
Register of Review of Accounts Office Work.
1. Code Word : RAW
2. Authority : Para 131 of Railway Audit Manual
3. The register should be maintained in the proforma prescribed.
4. The register contains the review report of items already mentioned in Para 56(Chapter V) of Memorandum of Instructions regarding the Extent of
Audit besides subsidiary items subsequently introduced.
5. After the results of the review are incorporated in the register, it should be sent to COR section to put up a consolidated position of defects noticed, by
10
th
October to Principal Director of Audit. Important items from the register should be considered for inclusion in the report on the efficiency of
Internal check.
6. Each register should be used for a period of 2 years and preserved for 3 years.
RAW

SECUNDERABAD

Section:_______________
For the year:_______________
To B.O.: 30
th
September
To P.D.A.: 1
st
October.
To be preserved for 3 years
Index Pages
Review for the year _____________
163
Review for the year _____________
Entries:
S.No. Particulars Review Remarks
1. (A) Items common to all branches etc.
(B) Items peculiar to various sections and branches
(C) Other items to be reviewed generally
(D) Special items
.
164
ANNEXURE VI
Para 518

Statement showing Summary of Recoveries effected at the instance of Audit

1. Serial Number
2. Particulars of the case
3. Amount pointed out by Audit for recovery
(b) as a result of audit of transactions already checked by Accounts Office
(c) other than those mentioned in column (a)
4. Amount actually recovered or agreed to be recovered by the Financial Adviser and Chief Accounts Officer
(b) as a result of audit of transactions already checked by Accounts Office
other than those mentioned in column (a)
5. Amount recovered as a result of further review by the Administration.
6. Reference to the Audit Note and the acceptance of the Financial Adviser and Chief Accounts Officer.
7. Initials of the Branch Officer.
165
MONTHLY REPORT OF THE STATE OF WORK IN _____________________ FOR THE MONTH OF ________________

I. (a) Items of work/return etc. shown as in arrears in the last monthly report (see section II) and the extent to which they have been cleared, with
reasons for items still outstanding:


I. (b) Returns/Registers not despatched/submitted/received or despatched/submitted/received late during the month:

Whom due of despatch/ despatch/action taken to expedite the receipt

I. Occasional returns due for the month:
Ref. No. and Date Due to Due Date Date of Submission Reasons for delay
166
-2-
Month
II. INWARD REFERENCES:

No. letters Bd. Lrs. ------------------------------------------------------------------------------
(B - Dak) (A - Dak) Sl. Letter No. Received Subject Reasons
No. and date From for delay
disposal

as per last report.
during the month.
03. TOTAL (1 +2)
04. No. of letters disposed off
3 months etc.
07. No.of CAG's letters for which

167
-3-
Month

III. (a) PENDING CASES:

III (b) OUTWARD CORRESPONDENCE

IV. ARREARS IN AUDIT WORK:

A) External
i) Arrears due to arrears in Accounts Office: Total Man days ________________________________

(Year-wise breakup documents man-days clearance
may be indicated)

168
-4-
Month
ii) Arrears due to non-receipt of vouchers/documents. Total Man-days ________________________

Documents man-days clearance

(Year-wise and item-wise details may be indicated below together with man-days against each item in respect of each Section)

169
-5-
Month


i) Detailed report on each item of arrears (i.e. Inspections and Central Audit in Man-days may be furnished here).

Officer doing Original ORIGINAL AUDIT POST REVIEW CURRENT REVIEW
Audit/Post Review -----------------------------------------------------------------------------------------------------------------------------
Date of Date of Date of Date of Date of Date of
Selection Completion Selection Completion Selection Completion

Section Officer(I)/



170
-6-
Month
V. INSPECTIONS:

a) Progress of Inspection (Executive Office & R.M.W)
No. of Inspections Inspections to be conducted Inspections actually completed Date of No.of Inspections Reasons
in arrears on the last during the month as per during the month Inspection in arrears on the for the arrears
day of the previous approved programme -------------------------------------- ---------------- last day of the
month ----------------------------------- Number Name of Offices month(1+2-3)
Number Name of From To
Offices
1 2 3 4 5 6

Executive Offices

R.M.W.s
171
-7-
Month
b) Issue of Inspection Reports: (Details of Offices against which NIL Reports are proposed and approved also should be given)
month Number Name of Offices From-To Group
Officer/
Pr.D.A.
__1__________________2_______________3___________4____________5___________6____________7__________8_______________

C. Details of offices against which NIL Reports are proposed & approved.

172
-8-
Month
VI. (a) Outstanding Part.I Inspection Reports, Part.I Test Audit Notes and Special Letters

Year Opening Issues Closure Closing Balance Money Details of the offices on which
Balance -------------- ---------------- ------------------- Value the Part I IRs were issued during
----------- No. Paras No. Paras No. Paras (Rs) the month.
No. Paras Office/ Report No.

173
-9-
Outstanding Part. I Inspection Reports (Complete list may be indicated) Month

Sl. No. Part. I IR No. and Date Money Value Date of Interim reply received Date of Reminder

174
-10-

ii) Part.I Audit Notes: (Year-wise details may be indicated in respect of each section separately)
Year Opening Issues Closure Closing Money Details of the offices on which the Part. I ANs
Balance Balance Value were issued during the month
-------------- --------------- --------------- ------------------ (in Rs) Report No. Office
No. Paras No. Paras No. Paras No. Paras

175
-11-
Month
(Outstanding Part. I Audit Notes (Complete list may be indicated in respect of each section)
Sl. No. Part. I AN No. and Date Money Value Date of Interim reply
received
Date of Reminder

176
- 12 -
iii) Paras of Part-I Inspection Reports/Audit Notes closed during the month:

while issuing the original the month (in Rs)
objection

a) Inspection Reports

b) Audit Notes

177
-13-
Month

-------------- --------------- --------------- ------------------ (in lakhs

178
-14-
Month


179
-15-
Month

objection



180
-16-
Month
VIII (b) Outstanding Inspection Reports (Part-II) and Test Audit Notes (Part-II):
INSPECTION REPORTS (PART-II):

-------------- --------------- --------------- ------------------ (in
No. Paras No. Paras No. Paras No. Paras Rs.)

181

- 17 -
(2) TEST AUDIT NOTES (PART-II):

-------------- --------------- --------------- ------------------ (in
No. Paras No. Paras No. Paras No. Paras Rs.)

182
-18-
Information of arrears (in man-days) Month
Section INTERNAL Increase (+) EXTERNAL Increase (+)
No. ------------------------------- Decrease (-) ------------------------------- Decrease (-)
Mn / Qtr Mn / Qtr Mn / Qtr Mn / Qtr
IVA(i)
IVA(ii)
IVB
V (a)
V (b)

I certify to the best of my knowledge and belief that the work is upto-date and test audit and other work required to be completed upto the end of
the month/quarter has been completed with the exception of the arrears detailed above.

I certify that data base of Special Letters / Part. I IR / AN have been updated upto (month) ______________ (Year) ____________

Section Officer/ Section Officer / Branch Officer
Asstt. Audit Officer Asst. Audit Officer Dated:

A.Au.O.(COR) Senior Audit Officer(COR)

Group Officer Principal Director of Audit
183
Statement showing Summary of recoveries effected at the instance of Audit for the year 2006-07
Railway _____________________________
Name of the Unit Amount pointed out
by Audit for recovery
Amount actually recovered or agreed to be recovered Total Amount
converte
d into
crore
As a
result of
audit of
transactio
ns
checked
by
Accounts
Other
than
those
mentione
d in
column 2
As a result of audit of
transactions checked
by Accounts Col. 2
Other than those
mentioned in Col. 4
& Col. 5
Amount recovered
as a result of further
review by Accounts
Amount
actually
recovered
Not yet
recovered
Amount
actually
recovered
Not yet
recovere
d
Amount
actually
recovered
Not yet
recovere
d
Amount
actually
recovered
(Col. 4 +6
+8)
Not yet
recovere
d (Col. 5
+7 +9)
1 2 3 4 5 6 7 8 9 10 11 12

Total for all Units

Ch.VI - Page 1 of 30
163
CHAPTER - VI
EXPENDITURE AUDIT
601. General: The audit of expenditure dealt with in this chapter is on works and working
expenses of the Railway not covered by the Chapters on -
(a) Establishment and Provident Fund Audit,
(b) Stores Audit,
(c) Workshop Audit, and
(d) Traffic Audit
The pattern of work in the Expenditure Audit Sections in the Headquarters,
Divisional and Construction Audit Offices generally follows the nature of work done in the
corresponding internal checking sections of the Office of the Financial Adviser and Chief
Accounts Officer and the subordinate Accounts Offices.
As the internal check of the expenditure pertaining to the Heads of
Departments' Offices, including Security and Public Relations, the Indian Railways Institute
of Signal Engineering & Telecommunications (IRISET) Railway Claims Tribunal and
Railway Recruitment Board, Secunderabad, and Centralised Training Academy for Railway
Accounts / Secunderabad (C-TARA) is done in the Expenditure Section of the Office of the
Financial Adviser and Chief Accounts Officer, audit of the same is done in Expenditure
Headquarters Audit Section.
The Works Audit comprises audit of -
(a) Sanctions
(b) Contracts
(c) Execution of works
(d) Estimates
(e) Completion Reports and other miscellaneous items
Important among other items of audit are -
(a) Bills for Law charges
(b) Accounts of Assisted Sidings
(c) Bills for rent on telephones and telegraph wires
(d) Payment to local bodies etc. and
(e) Fuel Accounts
602. Audit of Sanctions: Detailed instructions regarding audit of sanctions are contained in
Paras 132 and 133 of Railway Audit Manual In conducting the audit of expenditure, Audit
has not only to see that the expenditure is covered by sanction but also to satisfy itself that the
authority according the financial sanction is competent to do so by virtue of powers vested in
it by the provisions of the Constitution and of the laws, rules and orders made thereunder or
by the rules of delegation of financial authority made by the competent authority. Sanctions
to expenditure from the Consolidated Fund of India will be accorded by the President. The
power to sanction expenditure may be exercised by the authorities subordinate to the
164
President to whom such powers have been delegated by the President. Powers delegated to
the General Managers of the Railways are contained in the relevant Railway Codes and
Annexure II to Para 505 of Indian Railway Financial Code - Vol.I. Powers delegated by the
General Manager to subordinate authorities are contained in the "Delegation of Powers"
issued by the General Manager.
Sanctions issued by the President, Railway Board, General Manager and
authorities subordinate to General Manager come under monthly audit. Sanctions issued by
the President and the Railway Board relating to more than one Railway are audited by the
Office of Comptroller and Auditor General of India(Railway Wing), and copies forwarded to
the Principal Director of Audit. Copies of sanctions pertaining to individual Railways are
endorsed to the Principal Directors of Audit by the Railway Board. These and all sanctions
issued by the General Manager, South Central Railway, are audited by the Headquarters
Audit Sections. In addition, sanctions issued by the Heads of Departments, Deputy Heads of
Departments and Divisional Railway Managers are also audited to the extent prescribed.
Heads of Departments and Deputy Heads of Departments' sanctions should be generally
audited by the Headquarters Audit Sections, which will adopt the following procedure:
(a) The sanctions issued by the different authorities i.e., President, Railway Board, General
Manager and the Heads of the Departments will be entered separately in a register
maintained for the purpose.
(b) On or before 5
th
of each month, Heads of Departments'/Deputy Heads of Departments'
sanctions received during the previous month will be put up to the Branch Officers
along with the register for selection.
(c) The sanctions selected for audit and those to be audited cent per cent will be retained by
the Headquarters Audit Sections for further action and other sanctions forwarded to the
auditing units concerned for information and record.
(d) The sanctions due for audit will be audited by the respective Headquarters Audit
Sections with reference to the papers available in the Office of Financial Adviser and
Chief Accounts Officer and Departmental Offices and then passed on to the auditing
unit concerned for further scrutiny with reference to any papers or information which
may be locally available. Any points which the auditing unit may propose to raise in
connection with these sanctions, as a result of their scrutiny, should be put up to the
Principal Director of Audit through the Headquarters Audit Section concerned.
In cases where the financial proposals leading to the sanctions are vetted by
the concerned Divisional Accounts Officer/Senior Accounts Officer, it is likely that the
papers needed for the audit of sanctions will be available with the Division/Unit Accounts
Office. In such cases, the sanctions may be audited by the auditing unit concerned and
remarks, if any, furnished to the appropriate Headquarters Audit Section for further action, if
necessary. All cases of audit comments arising as a result of such scrutiny of sanctions by
unit audit offices which are forwarded to the appropriate Headquarters Audit Sections should
also be endorsed simultaneously to Coordination Section.
Sanctions issued by the Divisional Railway Managers should be audited by the
respective Divisional Audit Offices. All sanctions due for audit should be put up to the
Branch Officer after reviewing Accounts/Departmental files, for acceptance. Audit of
sanctions received in a month should be completed by the end of the following month.
165
Sanctions for write off of loss of stores are received(in terms of Para 1102 of Indian Railway
Financial Code Vol.I) in Stores Audit Section irrespective of whether they relate to stock
items or charged off stores. As copies of sanctions for write off in such cases are not
received in Divisional Audit Offices etc. they are not in a position to ensure that all cases of
losses written off during the year and pertaining to the divisions concerned, have been
included in the Annual Statement of Losses received from the respective Divisional Accounts
Offices for check. In order to facilitate the check in this respect, copies of write-off sanctions
relating to other than stock items of stores, i.e., stores charged either to works or to revenue
maintenance, will be endorsed by the Stores Headquarters Audit Section to the Divisional
Audit Offices etc. concerned, as and when such sanctions are received and dealt with by that
section. The Divisional Audit Offices will trace the posting of the sanctions in the Register
of Losses maintained by the Accounts Offices before filing the same and make use of these
advices at the time of check of the Annual Statement of Losses.
Important irregularities noticed in the audit of Railway Board's sanctions
should be intimated to Coordination Section before 5
th
of every month for report to the
Comptroller and Auditor General of India(Railways).
603. Review of Permanent Sanctions: In accordance with the provisions of Para 808-AI,
sanctions of a permanent nature and sanctions with a long period of currency are required to
be reviewed by the Accounts Department periodically. The position regarding the review of
sanctions contemplated in Para 808-AI will be indicated by the Accounts Office in their half-
yearly Arrear Report to the Railway Board. A register is also maintained in the Accounts
Office to indicate the progress of the review of permanent sanctions. This register should be
reviewed in audit annually along with the relevant records at the time of Review of Accounts
Office work.
Sanctions issued by Divisional and Assistant Officers should be reviewed
when the expenditure is audited.
604. Audit of Estimates: Audit of estimates as a separate item is not necessary. The audit of
estimates should be done at the time of auditing Contractors Bills, Completion Reports and
Review of Major Works. The scope and justification for works of magnitude should also be
reviewed during the audit of sanctions and review of Annual Works Programme. Linking of
estimates with contracts may be confined to works contracts only. In respect of contracts
reviewed by Sr.Audit Officers/Audit Officers and Asstt. Audit Officers/Section Officers,
checking of Estimates may be done by Sr. Audit Officer/Audit Officer and Asst. Audit
Officer/Section Officer to the extent prescribed in Appendix to RAM.
(C.&.A.G.'s letter No.3428-RAI/8-7/66 Vol.I dated 19.11.1966 and No.2334-
RAI/8-7/66 Vol.I dated 5.6.1968) (Para 3.3.2 of RRANs)
605. Audit of Completion Reports: Completion Reports of works costing Rs.50 lakhs and
above should be audited to the extent prescribed by the Comptroller and Auditor General of
India(Railways). Completion Reports of works or schemes of experimental or research
nature should be checked cent per cent irrespective of the value of the works. Completion
Reports of works costing below Rs.50 lakhs should be audited(to the extent prescribed)
during local inspections. Relevant contracts and estimates should also be reviewed when the
Completion Reports are audited.
166
In addition to the checks prescribed in the Railway Audit Manual, it should
also be seen during the audit of Completion Reports that:-
(a) in the case of construction of quarters, necessary entry is made in the Register of
Buildings,
(b) departmental charges have been correctly recovered whenever the works are
executed for outside parties,
(c) necessary entries are made in the Bills Recoverable Register in respect of interest
and maintenance charges, wherever these are to be recovered, and
(d) that public tariff rates have been charged for the carriage of materials booked for
deposit works executed for outside parties.
(Para 284 of Railway Audit Manual and Chapter XVII-E)
(Para 3.3.7 Report of the Committee on Railway Audit Norms)
606. Tenders and Contracts: Works executed on the Railways through the agency of
contractors generally fall under any one of the following categories:
(a) Zonal works - such as ordinary repairs and maintenance and other petty works in a
particular zone,
(b) Special works - such as construction of bridges, quarters, formation of embankments
etc, and
(c) Supply of building materials, ballast etc.
(Chapter XII-E, Chapter VI of Indian Railway Financial Code Vol.I and Para
267 of Railway Audit Manual).
(1) Tenders: For obtaining competitive rates for the works to be executed through the agency
of contractors, limited or open tenders are invited. Limited tenders are invited for works
costing upto Rs.40 lakhs from amongst the contractors borne on the approved list provided
that the number of contractors borne on the approved list is not less than ten.
The Railway Administration may, however, continue to invite open tenders for
works upto Rs.10 lakhs in the following circumstances:
(i) In the event of insufficient response to the tenders from the contractors borne on the
approved list,
(ii) When the work is of a special nature and contractors with requisite experience are
not available in the approved list; and
(iii) When ring formation is suspected.
Notice of invitation of tenders shall be in the form prescribed by the Railway
Administration and shall embody the directions issued by the Railway Board from time to
time. Until a formal agreement is prepared and executed, acceptance of the tenders shall
167
constitute a binding contract between the Railway and the tenderers subject to the
modifications as may be initially agreed to and indicated in the letter of acceptance.
The tenderer shall be required to furnish, along with the tender, a security in
the form of Earnest Money as mentioned in Para 1246-E.
General Managers of Railways are authorised to enter into contracts for works
or purchase of stores upto the limit of Rs.40 crores in each case. Delegation of General
Manager's powers to subordinate authorities for inviting tenders and for executing contracts is
contained in the "Schedule of Powers".
(2) Pre-qualification of contracts and consultancy of contracts etc.: With a view to
improving the administration of contracts and quality of the works executed through
contractors, a system of pre-qualifications of tenderers specially in respect of major contracts
involving construction of important bridges/structures etc. has been introduced in the
Railways vide Railway Board's letter No.85/WI/CT/23/GCC dated 31.1.1986. The
guidelines, norms etc. to be followed while considering the tenders are as under:
(i) Pre-qualification of tenderers: In respect of (a) works of large value and magnitude or (b)
works calling for special expertise, specialised equipment and machinery or (c) works of a
complex nature, only reliable and resourceful contractors are to be chosen who have had a
good track record in executing works of similar magnitude and complexity. Pre-qualification
bids are invited in respect of each specific work to obtain sufficient reliable information for
unbiased decision on the contractor's capabilities and capacity to carry out the proposed work.
The need to call for pre-qualification bids in any particular case should be decided by the
Head of the Department concerned,duly consulting the Associate Finance. The pre-
qualification bid should be invited by advertisement in the most open manner possible. A
non-refundable fee of Rs.2,000/- should be charged from the intending tenderers for pre-
qualification in support of their earnestness and sincerity. The Tender Committee will
scrutinise the bids received for pre-qualification and make their recommendations to the
accepting authority concerned.
All the Tenderers who have been pre-qualified should be invited to bid further
regular contracts.
(ii) Engagement of Consultancy Services: With the rising cost and limited resources, the need
to go in for new ideas and obtain advantage of expertise available outside the Railways has
been felt by the Railway Administration. With this in view, Railway Administration may
obtain the services of consultants for (a) Specialised works and structures, involving use of
computers, modern advanced theories and design and use of latest mechanised construction
methods (b) Important and prestigeous buildings and structures (c) Special type of roof
structures and covering (d) Design and construction of structures involving advanced and
complicated technology.
For the purpose of selecting the consultants, the guiding principles mentioned
in Paras 5, 6 and 7 of Railway Board's letter dated 31.1.1986 mentioned ibid should be
followed. General Manager is empowered to accept the consultancy contracts in the first
instance upto Rs.25 lakhs in each case subject to Rs.1.5 crores per annum. The selection of
consultants is to be at the level of Heads of Departments Committee.
168
(iii) Approved list of Contractors: A separate list of approved contractors should be
maintained by the Railway Administration for the following five slabs of estimated value of
the contract according to their capacity to take up such works:
1. Class 'A' for works more than Rs.50 lakhs and upto Rs. 1 crore.
2. Class 'B' for works more than Rs. 25 lakhs and upt Rs. 50 lakhs.
3. Class 'C' for works more than Rs. 10 lakhs and upto Rs. 25 lakhs.
4. Class 'D' for works upto Rs.10 lakhs
(Authority: Railway Boards Lr.No. 94/CE/I/CT/4 dated 17.10.2002)
The selection of approved contractors should be carried out by a Selection
Committee. The criteria to be followed for considering the enrolment of contractors in
various categories is given in Para 4.4 of Railway Board's letter dated 31.1.1986. No earnest
money need be paid by the contractors in 'A', 'B' and 'C' Classes at the time of registration.
Contractors may be given the choice of either depositing the Earnest Money with each and
every tender as per tender conditions or alternatively depositing a Standing Earnest Money.
(iv) Two Packet System of tendering: With a view to assessing the tenders technically,
without being influenced by the bids, Two Packet System of tendering or rather the two stage
procedure with the price bid invited at a later stage in exceptional cases of high value and
high complexity works/plant and machinery is adopted in the Railways. In this system, the
tenderers are advised to submit their quotations in two sealed envelopes with one cover
containing the technical and commercial offers and the other cover containing the financial
bids. The technical details and the commercial conditions are evaluated by the Tender
Committee and if they are found acceptable the second packet is opened and the tenders are
processed for acceptance in the normal manner.
The system is to be used restrictively and only with the concurrence of
Financial Adviser and Chief Accounts Officer.
(v) Payment of advance to contractors: Advances to the contractors during the course of
execution of the contract are granted with a view to accelerating the progress of the work.
The advance should be limited to 10% of the contract value and should be given in 2 stages.
The advance should be recovered through on account bills in instalments. The General
Manager is empowered to sanction the advance. No advance should ordinarily be granted in
the case of works costing less than Rs.50 lakhs. However, General Manager may grant, in
exceptional cases, an advance upto a maximum of Rs.5 lakhs in respect of contract value of
less than Rs.50 lakhs if the tenderer insists on payment of such advance as part of his offer.
(3) Constitution of Tender Committee: In terms of Para 1255-E, a Tender Committee should
be formed for consideration of tenders involving Rs.50,000/- and more. The Constitution of
Tender Committees for dealing with the various tenders should be as indicated in Para 1255-
E. An Accounts Officer will invariably be associated with every Tender Committee. No
officer competent to pass orders on the proceedings of the Tender Committee shall be a
member of such a committee. Tender Committee proceedings should, besides other relevant
information, give the following details:
1. Date and time for receipt of tender and/or opening.
2. Number of forms sold together with date of sale.
3. Number returned duly filled in and received by the stipulated date and time.
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4. Date of meeting of the Tender Committee, and
5. Date upto which quotations are open or valid.
(4) Execution of Agreements: After the finalisation of tenders, the Railway Administration
should take steps for the execution of agreement with the tenderer whose rate has been
accepted. The agreement should be executed in the standard form prescribed. Any special
conditions peculiar to the contract should be worded clearly and without ambiguity. In cases
where provision has been made for making advance payments to private firms, the
agreements should contain a penalty clause for recovery of the amount with interest, in case
of non-fulfillment of the terms of the agreement. After the execution of the agreement, the
contractor is required to furnish a Security Deposit at the rates in force from time to time.
The period of currency of the zonal contracts will be from 1st J uly to 30
th

J une. The tenders for Zonal Contracts are required to be invited in the month of April,
opened in the month of May and finalised by 30
th
J une so that the contract may take effect
from 1st J uly.
(5) Review of tenders and contracts: Divisional and Construction Audit Offices will audit
the contracts executed by the Divisional Railway Managers and the Divisional Engineers in-
charge of Construction/Divisions respectively. Contracts executed by higher authorities will
be audited by Expenditure Headquarters and Construction Headquarters Audit Sections, as
the case may be. Review of tenders and contracts should be done quarterly i.e., agreements
executed in a quarter should be reviewed in the second following quarter. The extent of audit
and the levels at which audit of contracts of different monetary limits should be done are
indicated in the Programme of Audit. The contracts reviewed by Section Officer/Asstt. Audit
Officer should be current reviewed by the Branch Officer as per the percentages indicated in
the Programme of Audit. Similarly, the contracts reviewed by the Branch Officer should be
current reviewed by the Deputy Director/Director to the extent prescribed in the Programme
of Audit.
Selection of contracts for audit should be made with reference to the Register
of Agreements maintained in the Accounts Office. In order to ensure that the list of contracts
to be reviewed by the Headquarters Audit Sections is complete, the Divisional and
Construction Audit Offices will send to the Expenditure Headquarters/Construction
Headquarters Audit Sections, after the close of every quarter, a list of contracts appearing in
the Register of Contracts, finalised at Headquarters level. In addition to the instructions
contained in Para 267 et seq. of Railway Audit Manual, the following points should also be
borne in mind during the review of tenders and contracts:
(a) Planning for the work is invariably done with adequate care and in sufficient detail even
in the initial stage and the final scope of the work is fully determined before tenders are
invited.
(b) The exact specifications of the materials required are indicated in the tender.
(c) In case where limited tenders are invited from contractors borne on the approved list, the
response is sufficient.
(d) No tender without earnest money is considered.
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(e) There is no ambiguity in the description of the items and the contract terms for evaluation
of work done in accordance with the accepted schedule of rates, so that there is no scope
for different interpretation, regarding the applicability of various items included in the
Schedule.
(f) Reasons for wide variations between the rates quoted by the different contractors are
investigated. When samples are sent to Chemist and Metallurgist, clear instructions are
given to examine the comparative economic benefits of different samples keeping in view
the purpose for which the samples are tested.
(g) There is no undue delay in the technical examination of the tenders, the consideration of
the tenders by the Tender Committee, in communicating the acceptance to the tenderers
and in the execution of agreement.
(h) If the lowest tender has not been accepted, the reasons therefor are recorded.
(i) The rates given in the agreement are the same as accepted by the Tender Committee and
that these have been attested by a responsible official of the Accounts Office,and
(j) The work order for the execution of the work is issued only after the acceptance of the
tender.
As far as practicable no work orders are approved against the old zonal
contract after opening of the new tenders and that all works of the old contract are completed
by the end of J une. Exceptional cases, which should be very few, should be dealt with by the
competent authority.
If and when sanction to deviation from the standard conditions of a contract is
received, the competency should be examined with reference to Para 626-F et seq. and a note
kept in the Register of Review of Contracts for examining the reasons therefor and the
propriety of the amendment, at the time of review of the contract.
(Note: While auditing contracts, relevant estimates should be checked
simultaneously).
(A.D.A.I.'s letter No.2301-RAI/8-7/66 dated 27.8.1966).
(6) Negotiations with Tnderers: Negotiations with the tenderers are conducted in accordance
with the instructions issued by the Railway Board and only in the cases of the following
nature:
(a) The lowest tender received is considered high.
(b) When it is suspected that a 'ring' has been formed by the contractors.
(c) When the lowest tender is rejected for one reason or the other viz. (i) rates quoted by the
contractor are unworkable; (ii) unsatisfactory credentials, incapacity to do the work etc.
The procedure indicated below is required to be followed in conducting
negotiations with tenderers:
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(a) As a rule, there should be no negotiations for the revision of rates quoted by the lowest
tenderer if there is keen competition amongst the contractors.
(b) If the rates quoted by the lowest tenderer are found to be excessively high, negotiations
for reduction in rates may be carried out.
(c) Such negotiations should be carried out only after approval is given by the authority
competent to accept the tender, depending on the value of the work, based on the
recommendations of a duly constituted Tender Committee.
(d) A final decision on the negotiated offers will be taken by the authority competent to
accept the tender, depending on the value of the work, on the recommendations of the
Tender Committee.
(e) Negotiations should be only to bring down the rates and this should be made clear to the
tenderers by obtaining an undertaking.
(f) Advices should be sent by registered post to all the contractors who quoted for the work,
and
(g) In case negotiations cannot be carried out within the period of validity of the tenders, the
period of validity is got extended before negotiations are concluded.
607. Record of Tenders and Contracts reviewed: A record of the contracts reviewed by
Section Officers/Asstt. Audit Officers/Audit Officers/Senior Audit Officers should be
maintained in the proforma given in Annexure I to this Chapter. The register should be put
up to the Branch Officer quarterly on 10
th
of April, J uly, October and J anuary. The register
should be put up to Principal Director of Audit quarterly only when there are any important
points.
608. Review of Implementation of Contracts: A review of the implementation of all
contracts to the extent prescribed in Appendix to the extent prescribed in Chapters on RANs
should be undertaken and the following procedure in regard to the review of implementation
of contracts, method of selection, maintenance of registers etc. should be followed.
I. (a) The review of implementation of contracts should cover all branches,
namely, Civil Engineering, Mechanical, Electrical, Stores, Signal & Tele-communications,
Operating, Commercial etc. and also Zonal Contracts.
(b) Implementation of works and service contracts shall be reviewed by the
Divisional Audit, Construction Audit units and Traffic Audit Sections. Implementation of
stores contracts (Purchase Orders) will be done by Stores Headquarters Audit Section in
respect of stock items and by Divisional Audit, Construction Audit, Workshop and Stores
Audit units etc. in respect of non-stock items.
(c) Implementation of contracts should be reviewed on quarterly basis as in the
case of review of tenders and contracts.
(d) The review of implementation of contracts should be ab-initio by the Audit
Officer/Senior Audit Officer in respect of contracts valued above Rs. 50 lakhs to Rs. 5 crores
and by the Section Officer/Asstt. Audit Officer in respect of selected contracts valued upto
Rs. 50 lakhs.
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(e) At the discretion of the Branch Officer, the contracts reviewed by Section
Officer/Asstt. Audit Officer should be current reviewed by him.
II. As different percentages of audit have been prescribed for audit of contractor's
bills, review of tenders and contracts and review of their implementation, the following
procedure should be adopted for selection of contracts for review of implementation and their
actual review.
I. WORKS CONTRACTS:(a) In the case of Works Contracts, when the final bills
passed in respect of contracts valued over Rs. 1 lakh are taken up for regular monthly
audit, the relevant files relating to the contracts should be looked into, wherever
possible, to see how the contracts have been implemented. A list of all such contracts
reviewed in the course of audit of final bills should be maintained in a register,
separate pages being allotted for contracts valued between Rs. 1 lakh and Rs.5 lakhs
and contracts of over Rs. 5 lakhs.
(b) At the beginning of each quarter, i.e., in the first week of J anuary, April,
J uly and October, lists should be prepared from the contractor's ledgers maintained in
Accounts Office of all the final bills passed during the previous quarter in respect of contracts
valued between Rs. 1 lakh, above Rs. 1 lakh but below Rs. 1 crore and above Rs. 1 crore. All
the contracts valued over Rs. 1 lakh as recorded in the Register of review of contracts should
be linked up with the closure of contractor's ledgers on passing their final bills and suitable
entry to this effect should be made in that register. All contracts valued over Rs.20 lakhs and
a percentage (to be selected as laid down in the Secret Memorandum of Instructions) of
contracts valued between Rs. 5 lakhs to Rs. 20 lakhs and Rs. 1 lakh and Rs. 5 lakhs should be
taken up for review of implementation. Necessary selection-cum-audit completion registers
should be maintained for this purpose as in the case of other audit items. It should be seen as
to how many of the completed contracts have already been reviewed during the course of
audit of final bills and the balance, if any, should be called for and reviewed. The contracts
which have already been reviewed for implementation at the time of check of final bills
should also be reviewed again wherever the contingency referred to in Para (c) below arises.
(c) In cases where completion of the maintenance period and of
warranty/guarantee period is involved, the passing of a final bill cannot be equated to the
final completion of contracts. In such cases, the review should not be held up but should be
reviewed again after the expiry of the maintenance/warranty/guarantee period.
There may also be cases where, due to disputes raised by contractors, work
may be abandoned by them without completion and in such cases final bills as such might not
have been passed. Such cases where final bills have not been passed even after one year from
the date of physical completion of the work or abandonment of the work, should also be
specially reviewed for implementation of contracts treating the last bill passed as final bill as
per prescribed monetary limits. It should specifically be verified that claims for recovery of
the extra costs incurred in completing the left over works, if any, are preferred correctly and
action taken to realise the Government dues.
(d) In so far as Construction Audit units are concerned, the review of
implementation of contracts should be done during the local inspections of Executive Offices
and/or during the review of major works if that is considered more effective and convenient.
173
II. The review should cover all aspects of the contract and it should be
specifically seen whether the objectives for which a contract was entered into were fully
achieved.
III. The register of "Review of Implementation of Contracts" should be
maintained in the following proforma:
1. Serial number
2. Quarter ending
3. Contract Agreement number and date
4. Name of the contractor/firm
5. Name of work/particulars of materials supplied
6. Value of the contract
7. Date of commencement and completion of contract
8. Au6 number and date of Final Bill
9. Special features, if any and reference to objection issued
10. Remarks of the Reviewing Officer
IV. At the commencement of every quarter i.e. by 10
th
J anuary, April, J uly and
October, the Register of Review of Implementation of Contracts should be submitted to the
Principal Director of Audit by the sections concerned indicating, inter alia, arrears in the
review, reasons therefor, action taken to clear the same etc.
(P.O.O. No.93 dated 30.7.86 read with Para 32 of SMI (Page 9))
The following are some of the points to be seen during the review of
implementation of contracts:
(1) Wherever higher rates are agreed to for earlier completion of the work, the stipulated date
of completion is adhered to; extensions to the contract period are not sanctioned as a
matter of course and penalty is levied or extra expenditure recovered in such cases.
(2) Unilateral extension to the contract period is not given by the Railway Administration
even though the terms of contract provide for the same without specific consent/request
from the contractor. Wherever new items or additional quantities are brought in, the rates
are reasonable compared to the original contract rates and also that these could not have
been foreseen at the time of awarding the original contract.
(3) If materials or equipment are issued to the contractor, the rates for the same are correctly
fixed and recovered.
(4) In the case of works of an urgent nature, it should be specially seen that:
(i) there is no delay in executing formal agreements and consequent intended benefits
to the contractor by way of longer completion period and consequent escalation in
rates etc.
(ii) where higher rates are accepted for earlier completion, there is no failure on the
part of the Railway Administration to fulfil its part of the contractual obligations to
ensure timely completion of the contract.
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(5) Increase and decrease in quantities.: It should be specially seen that increase or decrease
in quantities does not have the effect of rendering the accepted tender less favourable than
any of the rejected tenders. It may also happen that high rates must have been accepted
for certain minor items, but the quantities of such items are increased beyond reasonable
limits involving heavy payments. Even though under the Standard Conditions of
Contract, the contractor is required to do increased quantities of work, such increase
should be reasonable. Reasonable increase is quantity has been fixed to be 15 to 25% by
the Railway Board in consultation with the Ministry of Law.
Cases of upward classification of earth work resulting in substantial over-
payments and on-account payments, in excess of the value of work done, also require special
examination.
In respect of zonal works, it should be specially seen that there is no holding
back of work orders or hurried issue of too many work orders depending upon the following
year's rates, during the last months of the year to favour the contractors.
Cases of arbitration and Court cases arising out of disputes in the finalisation
of the contracts should also be reviewed. A register of Review of Implementation of
Contracts should be maintained indicating the particulars of the contracts selected and
reviewed, details of the records reviewed and the results of the review.
609. Audit of Contractors Bills: Detailed instructions for the audit of Contractors' bills are
contained in Paras 270-271 of Railway Audit Manual. Final and on-account bills of
contractors are selected for audit. All on-account bills relating to the final bills selected for
audit should also be audited along with the audit of the final bills.
A record of the final bills and the on-account bills audited should be kept in
the Selection-cum-Audit Register.
In addition to the checks which are normally required to be exercised in the
audit of contractors' bills, the following checks may also be exercised to the extent
practicable on the bills for well sinking and earth work.
(1) Bills fork well sinking: In addition to the check of the quantities in the bills with the
entries in the Measurement Book, entries themselves should be checked with the entries in
the Log Book or Field Book or otherwise known as 'Technical/Site Register' maintained for
such works. It may be seen that the recording of the bed level (or the ground/water level in
the case of ground wells) has been done by a responsible official and signed by the AEN in-
charge and the contractor in token of his acceptance. The entries in the Measurement Books
could also be usefully checked with reference to the completion drawings available in the
Divisional Office which would show the level reached by the cutting edge and the bed level.
(2) Bills for earth work: In the case of large earth works 'Key plan' and the 'Project sheets'
may be consulted in order to have a general idea of the work.
Earth work will ordinarily be paid for, based on measurements by cross-
section of formation taken before commencement and after completion of the work.
Contractors are required to sign the cross-section measurements in token of acceptance.
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In the case of earth work based on cross-section measurements of bank or
cutting, the entries in the Measurement Books would show the area of the cross-section at
different suitable chainages, the length of the bank or cutting between consecutive cross-
section and the quantity for each length of the bank/cutting. In addition to checking the bills
with the measurement books, which has necessarily to be done, the entries in the
measurement books themselves could be usefully checked i.e., the area worked out with
reference to the level books. The area of the cross-sections worked out as per the entries in
the level books could also be test-checked.
Where the bank is made up partly from cut spoils and partly from borrow pits,
the chainages of the bank to be formed under each category is pre-determined by the
Engineer's representative. In such cases, it may be seen that the cut spoils have been used to
the best advantage of the Railway. In the case of banks formed from cut spoils, lead is
reckoned from the centre of gravity of the cutting mass to the centre of gravity of the
embankment mass by using a mass diagram. In respect of banks formed from borrow pits,
the lead is determined with reference to the borrow pits plans. The entries for lead shown in
the Measurement Books should be checked with reference to these records.
(C.A.G.'s Lr.No.B/1803-RAI/7-15/61 dated 1.6.1962)
610. Measurement Books: It should be seen that measurements are recorded in accordance
with the instructions contained in Way and Works Manual and specifications for works and
materials. Subordinate officials of the Engineering Department are authorised to record
measurements only upto certain monetary limits. It should be seen that these limits and other
restrictions regarding special items such as hidden works, measurement of ballast etc. are
strictly adhered to. When standard measurements are adopted, these should have been
approved and upto date. It should also be seen that necessary certificates in respect of
standard measurements and approximate measurements are recorded by the officials
authorised to do so.
While checking contractor's final bills relating to earth work contracts during
inspection of Construction Engineering Offices, an intelligent detailed scrutiny of
measurement books with connected documents will reveal many mistakes. The measurement
book has to be checked with the help of the following supporting documents:
(1) Survey level books showing the ground levels at the time of preparation of
estimates and tender schedule.
(2) Ground level books showing the level at the time of handing over site to
contractor.
(3) Final level books.
(4) Site measurement books.
(5) Cross section sheets.
(6) Earth work calculation register, and
(7) Track map indicating gradient etc.
Detailed check is conducted on the following lines:
(a) cross section areas, as noted in the measurement book, are tallied with the entries in Earth
Work Calculation Register;
176
(b) the final levels taken for calculation in the Earth Work Calculation Register should agree
with the final levels touched in the level books and should be in accordance with the
proposed gradient as shown in the track drawings or other authentic records;
(c) ground levels are to be checked with reference to entries in level books which should
agree with the original levels recorded at the time of survey;and
(d) cross sections arrived at should be as per specification i.e., slopes are provided correctly
and toes of banks are correct. Wherever the levels at toes are not touched, the levels
should be arrived at by interpolation of levels taken on immediate points on both sides.
611. Contractors' Ledgers: Contractors' Ledgers should be reviewed simultaneously with
the audit of contractors' bills in accordance with Paras 272 and 273 of Railway Audit
Manual(Para 1483-E).
612. Works Registers and Revenue Allocation Registers: J ournal Vouchers to the extent
prescribed and all audited vouchers should be traced into the Works Registers or Revenue
Allocation Registers.
In the open line, only one set of Works Registers and Revenue Allocation
Registers is maintained. In the Construction Organisation, Works Registers are maintained in
the Divisional Engineers' Offices and in the Accounts Offices.
In the case of Works Registers for deposit works, in addition to the points
mentioned in Paras 280 and 281 of Railway Audit Manual, it should be seen that the
expenditure booked is not in excess of the deposit or that action has been taken to obtain
further deposits where the expenditure has exceeded the deposit already made.
The annual general review of Works and Revenue Allocation Registers should
be done in a phased programme. It should be seen whether the reconciliation of Works
Registers and Revenue Allocation Registers with General Books is done every month in
respect of the unit selected.
(Paras 1471 & 1480-E and Paras 272 and 273 of Railway Audit Manual)
613. Scrutiny of Financial Reviews: Consequent on the discontinuance of preparation and
submission of Half Yearly Financial Reviews of the large works by the Railway
Administration to the Railway Board vide letter No.73/EB/403 dated 2.10.1973, audit should
ensure during the inspection of major works and review of Works Registers that adequate
control is exercised by the Railway Administration over the closure of the accounts and
preparation of completion reports of works and that there are no cases of abnormal delay in
closing the accounts of works after their physical completion.
614. Review of Productivity of out-lay: The Railway Administration is required to conduct
productivity test in respect of Open Line works and works charged to Capital in terms of
Para 248 of Financial Code Vol.I. In addition to the productivity test to be conducted, a
productivity review will also be undertaken as required under Para 249 of Financial Code
Vol.I.
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The review of the productivity test should be carried out as laid down in Para
292 of the Railway Audit Manual. The instructions contained in C.A.G.'s letter No.3544-
444/RAI/8-4/70 dated 5.9.1970 should also be borne in mind during the review of
productivity of outlay. Results of the review should be reported to.D.A.I..
A register showing the works which are due to be taken up for productivity
tests automatically or which are selected by the General Manager should be maintained by
the auditing sections, incorporating the information collected from the Finance Branch of the
F.A.&.C.A.O.'s office. The register should be kept uptodate.
The proforma for the maintenance of the register is given in Annexure - II to
this Chapter.
The registers of the Headquarters Sections should be put up to the Principal
Director of Audit yearly.
(Paras 248 to 252 of Financial Code Vol.I)
615. Review of Major Works: This is dealt with in the Chapter on 'Inspections'.
616. Accounts of Sidings: Instructions contained in Para 285 of Railway Audit Manual may
be seen. The following points should also be borne in mind in checking the accounts of
Sidings:
(i) An upto date list of sidings is sent by the DEN to DAO in April every year.
(ii) Rate of recovery of interest charges is revised every five years taking into account the
present day cost of the assets borne by the Railway.
A list of all sidings pertaining to each division should be furnished in April
every year by the Divisional Audit Offices to the Traffic Audit Section to ensure that the
statement of siding charges of all sidings come under the purview of audit without omission.
The review of the accounts of a few sidings may be taken up every month if
the number of sidings is too many, completing the review of all the sidings in a year. Cases
of large amounts outstanding for recovery from siding owners should be specially reviewed.
Minutes of the DRM's Meeting with Divisional Officers which often furnish information
about the outstanding dues from siding owners may be reviewed with advantage to get an
over-all picture of arrears in the recovery of siding charges.
In cases where cost of staff is recoverable from siding owners, it should be
seen that in addition to pay and allowances, the percentage charges laid down in Para 2021
R-II are correctly recovered.
617. Joint Station Accounts: South Central Railway has no J oint Stations involving non-
Government Railways.
618. Review of Registers of items under objection: Registers of items under objection
should be reviewed quarterly. It should be seen that the objections raised by both Accounts
and Audit are noted in Objectionable Items Register. The cases referred to in this Register
should also be gone through to see whether sufficient action is taken by the Accounts Office
and the Departments concerned to clear the objections. Special attention should be paid to
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miscellaneous items kept under objection. It should be seen that all payments made
provisionally to other than Railway employees are entered in Objectionable Items Register.
At the time of check of Appropriation Accounts, it should be seen that all
items of expenditure held under objection are included in the Annexure - A to Appropriation
Accounts "Statement of unsanctioned expenditure".
(Para 283 of Railway Audit Manual and Paras 844-863 of Indian Railway
Accounts Code Vol.I).
619. Law Charges and Arbitration Fees: Law Charges and arbitration fees should be
audited in accordance with the instructions contained in Para 277 of Railway Audit Manual.
620. Audit of Journal Vouchers: In cases where the amount of J ournal Vouchers is 'nil' on
account of plus and minus adjustments, the total of the plus figures should be adopted for the
purpose of applying the percentage audit on the basis of amount. The J ournal Vouchers
should be checked from the point of propriety, correctness etc. why the adjustment became
necessary, whether it points to possible misclassification and whether it has been made to
avoid lapse of funds or excess over appropriation. Besides these, the following special points
also should be seen:
(i) Cases of delayed adjustments involving large amounts and pertaining to the previous
years will be noted to see at the time of Appropriation Accounts regarding adequacy
of provision in the Budget Grant.
(ii) Cases of misclassifications, important mistakes in accounting and any other important
points affecting the Appropriation Accounts, noticed during the check of J ournal
Vouchers, will be noted in a separate register to be consulted at the time of the check
of Appropriation Accounts.
(iii) During the scrutiny of March Accounts, Divisions and Sections should keep a careful
watch over all major adjustments carried out by the Accounts Office. Any special or
unusual adjustments involving heavy amounts carried out by the Accounts Office,
which the Branch Officer may consider to be important enough to be further
examined, should be reported to SAG (also known as ECPA) Section for detailed
investigation.
J ournal Vouchers to the extent prescribed should be traced into the Works
Registers/Revenue Allocation Registers in the manner laid down in the Secret Memorandum
of Instructions. In addition to the audit of J ournal Vouchers, all adjustment mema should be
subjected to a detailed check to the same extent as J ournal Vouchers.
(C.A.G.(R)'s letter No.1261-RAI/8-7/66 Vol.I dated 24.4.1967).
(Paras 278 and 387 of Railway Audit Manual).
621. Payment of Municipal Taxes: Payment of service charges to Municipalities and Local
Bodies in respect of Railway properties is governed by the instructions contained in Railway
Board's letter No.F(X)II-48/TX-17/24-A dated 24.7.1954. Where a consolidated tax is levied
by Local Bodies, as distinct from separate taxes for each item of service, the payment of
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service charges should be regulated by the instructions contained in the Ministry of Finance
letter No.4(7)-P/65 dated 29.3.1965.
In terms of Article 285(1) of the Constitution, Central Government properties
are exempt from all taxes imposed by the State or by any authority within a State. Under
Article 285(2), however, the Government is liable to pay such local taxes as were being paid
before 26
th
J anuary, 1950. Detailed instructions in regard to Railways' liability to pay local
taxes are contained in Railway Board's letter No.F(X)-165-TX/19/6 dated 22.5.1966.
As and when the Municipal tax bills are selected for audit, the Expenditure
Audit Section should verify the existence of the assets taxed with reference to the Register of
Buildings etc. and also examine the sanction to payment, correctness of the amount paid etc.
622. Recovery of water charges from Gazetted Officers occupying Railway Quarters:
Charges for water supplied to the Gazetted Officers occupying Railway Quarters should be
adequate to meet the cost incurred by the Railway. The rates are fixed once in five years in
accordance with the instructions contained in Railway Board's letter No.F(X)II-54/TX-33/2
dated 2.9.1959.
The correctness of the rates fixed will be scrutinised by the Expenditure
Headquarters Audit Section. However, as the details for fixing the rates are furnished by the
Divisions, the correctness of these details have to be checked by the Divisional Audit
Officers concerned. The recovery of water charges made from pay bills will be watched by
the Establishment Audit Section.
623. Review of Court Cases and Arbitration Awards: Court cases decided against the
Railways to the extent prescribed are required to be reviewed. The following points should,
inter alia, be seen:
(i) That there is no abnormal delay in taking various steps in the course of a case e.g.,
filing the affidavit, or documents, production of evidence, dealing with reference from
Railway Pleaders etc.
(ii) That there is no failure on the part of the Railway Administration in furnishing the
required information to win the case.
(iii) That there is no absence of key witnesses or advocate, and
(iv) That there is no delay in satisfying the court decrees and consequent extra
expenditure.
Important results of review of court cases and arbitration awards should be
reported to the Principal Director of Audit.
624. Land Register: The rules and procedure regarding acquisition, custody, management
and disposal of land given in Chapter VIII-E to X-E and the procedure of disbursement of
land charges and maintenance of Register of Land Charges in Accounts Department, given in
Paragraphs 924-E to 949-E should be referred to. The Register should be generally
reviewed every year to see that it is maintained and kept upto date. It should be seen that the
land is acquired only for sanctioned works and bonafide Railway purpose.
180
625. Rent on Railway Buildings: In accordance with the instructions issued by the Railway
Board, the assessed rent of each class of quarters both for Gazetted and Non-Gazetted staff
should be fixed by the General Manager so that the total rent realised for all the quarters in
that class taken together will give a return of not less than 6% of the cost of the building. For
this purpose, the capital cost of the buildings will include not only that of the buildings
proper, but also the cost of sanitary installations and electrical fittings. Whenever new
buildings are constructed or expenditure over specified limits is incurred on existing
buildings or certain buildings are condemned, amendments to the Register of Buildings will
be notified by the General Manager(Works). Once in three years, the total cost of Gazetted
Officers' and N.G.O's quarters will be ascertained separately for each class for working out
the revised assessed rent. The correctness of the assessed rent fixed for each type of quarter
will be checked by the Expenditure Audit Section at Headquarters. The information
regarding the cost of the buildings furnished by the Divisions to the Chief Engineer should be
verified by the Divisional Audit Officers and remarks, if any, intimated to Expenditure
(Para 1906-E et seq ).
626. Register of Buildings: The Register of Buildings maintained in the Accounts Office
should be generally reviewed at the time of check of annual rent return of Residential
Buildings to see that they are maintained properly indicating all the required particulars. It
should be seen during the audit of Completion Reports that necessary additions are made in
the Register of Buildings.
With the introduction of simplified procedure for recovery of rent on
residential buildings, the maintenance of Rent Registers has been discontinued. Instead, Rent
Rolls have been introduced which give full particulars of quarters, names of employees
occupying the quarters, assessed rent etc.
627. Annual Rent Return Account of the Residential Buildings: From the list of Buildings
and the Financial Accounts, the Annual Rent Return Account of residential buildings will be
compiled by the Accounts Office. These are required to be audited to the extent prescribed in
letter NO.Au/XHQ/XIX-2 dated 4.5.1968. It should be seen that the total cost of the buildings
has been correctly worked out with reference to the Register of Buildings.
Total amount of rent collected should be checked with the rent rolls.
Note: The compilation of Annual Rent Return Accounts of Residential Buildings
constructed by the Construction projects and allotted to the construction staff has been
dispensed with in terms of Railway Board's letter No.F(X)/1-68-OR11/1 dated
7.4.1968. Annual Rent Return Accounts of Residential Buildings prepared by the
Divisional Accounts Officers will incorporate accounts of Residential Buildings of
Open Line allotted to the construction staff, as the credits in respect of rent recoveries
from staff of construction are passed on to the Open Line Divisionalo Accounts
Officers for carrying out necessary adjustments. (5
th
Edition)
(Para 259 of Railway Audit Manual and Para 1629-1630 AI).
628. Audit of Property Accounts: An adequate procedure to check the property accounts in
respect of immovable property, which are maintained by the Railway Administration is
necessary. Separate instructions exist for the audit of Land Registers, Register of Buildings
181
and Register of Sidings. The procedure indicated below should be followed for checking
other records of property accounts:
(a) Register of Bridges: This may be reviewed during local inspections to see that all
bridges constructed have been noted in this register bringing it upto date and new
constructions are noted as soon as completion drawings are made out.
(b) Register of Level Crossings: This should be reviewed during local inspections to
see that it is complete and upto date.
(c) List of Completion Drawings: During local inspections it may be seen that
completion drawings in respect of works completed to the estimate
drawing/drawings exist and a record kept thereof. There may be one completion
drawing when several structures are erected in the same locality and to the same
drawing. In such cases, number of assets involved may be checked with the
estimates and completion reports.
(C.A.G.'s letter No.1191-RAI/8-11/67 dt.1.4.1968).
629. Review of Suspense Registers: (a) Miscellaneous Advances: Advances paid to Land
Acquisition Officers, 90% advance paid to contractors for supply of engineering materials,
advance payments to contractors for works etc. come under Miscellaneous Advances dealt
with in Expenditure Section.
(b) Deposit Miscellaneous: Earnest Money and Security Deposit of Contractors and deposits
made by outsiders for deposit works etc. come under this category.
Separate registers are maintained in the Accounts Office for each category of
Miscellaneous Advances/Deposits. The registers should be reviewed in J une every year on
the lines indicated in Para 610 and 614-AI and Para 371 of Railway Audit Manual. The half-
yearly reviews for May and November submitted to the Railway Board may also be referred
to during the review of the registers. In addition to the general review, one month's
outstandings should be traced back to the month of origin. In the case of deposits for works,
the Works Registers for Deposit Works should be connected. It should also be seen that the
balances have been reconciled with General Books.
(Paras 610, 614 AI and Para 381 of Railway Audit Manual).
630. Financial Assistance to Railwaymen's Consumer Cooperative Societies: The
following forms of financial assistance are given to Railwaymen's Consumer Cooperative
Societies by the Railway Administration.
(1) Matching share capital contribution upto Rs.2,500/- per society in the case of societies
which have started functioning on or after 1.9.1963 and also in the case of such of the
dormant societies which ceased to function for want of finances and, in the opinion of
the Railway Administration, could be revived by the grant of this concession.
(2) Interest-bearing repayable working capital loan to such of those societies which, for
want of finances, are either not functioning progressively or cannot expand their scope
of activity.
(3) 50% of the Administrative and Establishment charges as subsidy.
182
It should be examined whether the conditions attached to the payment of
contributions to share capital, loan and subsidy are fulfilled.
(Railway Board's Lr.No.63(E)/Coop/40/26 dated 13.10.1964,
No.64/B(Coop)/9/6 dated 24.4.1965 and No.65/E(Coop)/14/13 dated 10.1.1966).
631. Payment of subsidy to staff canteen: Payment of subsidy to staff canteens is governed
by the orders contained in Railway Board's letter No.E(W)63 CNI-2 dated 9.7.1963 and
No.E(W)64CNI-17 dated 23/28.12.1964, as amended from time to time. The subsidy payable
by the Railway Administration would be 70%. It should be seen during the audit of
sanctions/vouchers for payment of subsidy that the accounts and the certificates, as required
to be submitted under the extant orders, have been submitted and the conditions for the grant
of subsidy have been fulfilled.
632. Grants-in-aid: It should be seen whether the grants are spent on the specified objects
and in accordance with the prescribed conditions. Instances of misuse of grants and also
irregularities due to the neglect by the sanctioning authority of conditions precedent to the
grant or by the grantee of the conditions, expressed or implied, should be taken up.
(Para 3.5.1 to 3.5.9 of the C.A.G's Manual of Standing Orders (Audit) and
Paras 1612 to 1619-AI )
633. Expenditure from Hospitality Fund: Chief Public Relations Officers of Railways are
authorised to incur expenditure to entertain Press Representatives, personnel connected with
Commercial Advertisement and distinguished visitors. The conditions under which
expenditure from Hospitality Fund may be incurred are laid down in Board's letter
No.89/PR/4/9 dated 29.4.1989.
A quarterly statement is submitted by the Chief Public Relations Officer to the
General Manager indicating the number of occasions on which expenditure from the fund
was incurred, expenditure met on such occasions and the number of persons on each
occasion. A general review of the expenditure should be conducted yearly with reference to
the register maintained in the F.A.&.C.A.O.'s office.
634. Pay Orders/other vouchers not falling under any other category: Bills relating to
payment of service charges to local bodies, bills for electricity, water charges and telephone
charges etc. are audited under this item. While auditing these vouchers, the instructions
contained in Para 269 of Railway Audit Manual should be borne in mind.
635. Bills Recoverable: All amounts due to the Railway are realised by the issue of bills in
Form A.1138/E.1463. All bills issued are entered in the Bills Recoverable Register and
numbered in consecutive order. The register will indicate particulars such as number and
date of the bill, amount, date of realisation, mode of payment, reference to journal entry etc.
Separate Bills Recoverable Registers are required to be maintained for recurring items such
as interest and maintenance charges on sidings, rent for accommodation given to other
departments, rent on land licensed to other departments or private parties, rent for way-leave
facilities such as pipe lines, cables, maintenance charges for level crossings, nominal rent
from canteens etc.
183
These registers and the office copies of the bills should be reviewed yearly, at
the time of Review of the Accounts Office work to see that the amounts due have been
correctly billed for and that there is no undue delay in realisation of the dues.
(Para 1139-1140-AI).
636. Audit of Stores Bills for non-stock items: Stores Bills for non-stock items of stores
chargeable to revenue final heads of account and to specific works, chargeable to Capital,
Depreciation Reserve Fund, Development Fund and Open Line Works(Revenue) are passed
by the Divisional Accounts Officers and other Unit Accounts Officers. Consequently, the
audit of the same has to be done by the corresponding Divisional/Unit Audit Officers. These
bills including stationery bills of non-stock items are audited to the extent prescribed. The
audited bills should be traced into the Accounts and Departmental Ledgers. As Risk
Purchase Statements are not prepared by COS, the correctness of the amount to be recovered
from the defaulting firms should also be checked half-yearly with reference to the Risk
Purchase Register maintained in the Accounts Office.
I.S.D. Bills adjusted through J ournal Vouchers should also be audited to the
extent prescribed for Stores Bills.
(Paras 297 and 298 of Railway Audit Manual).
637. Audit of Catering Accounts: (a) Daily Accounts: Daily Accounts maintained at the
Catering Units are required to be audited by the Expenditure Section of the Divisional Audit
Office concerned Accounts for a ten-day period should be selected and the transactions of
the unit so selected intensively reviewed especially with a view to seeing that the quantity of
stores consumed is commensurate with the sales and that the wastage has been kept to the
minimum. The recipes and the formula prescribed for the various items should be reviewed
to see that they are commensurate with the actual needs and wastage has been kept to the
minimum and that these are reviewed regularly. Whenever a catering unit is selected for
audit, remittance of cash collected during the year viz., from 1st April to the date of
inspection should be reviewed.
Daily accounts of Dining cars should be audited during inspections.
Transactions of selected trips on different occasions should be checked in detail in respect of
all dining cars during the inspection. Remittance of cash for the whole year viz., from 1
st

April to the date of inspection should also be reviewed.
(b) Monthly Accounts: Monthly accounts of catering are audited to the extent prescribed in
respect of all the catering units/dining cars by the Divisional Audit Offices.
During the audit of monthly returns including the monthly Profit and Loss
Accounts, it should be seen that the monthly reconciliation of cash collections with the credit
afforded by Traffic Accounts Branch has been carried out.
A review of the vouchers relating to losses in each of the Departmental
Catering Units for the month selected and an overall review for the year as a whole should be
carried out to ensure that there is no undue delay in the review of these losses and
regularisation thereof and the incidence of loss is not heavy.
184
Audit of contracts for supply of catering stores entered into by the
CCM/CCO(Catering) and the bills relating to the supply is done by the Expenditure
Headquarters Audit Section to the extent prescribed under 'Stores Audit'. Audit of
consolidated Profit & Loss Accounts of Catering etc. dealt with in the F.A.&.C.A.O's office
will also be done by the Expenditure Headquarters Audit Section.
638. Audit of Fuel Accounts: The procedure for the supply, receipt, issue and accountal of
coal and coke/diesel oil, is laid down in the J oint Operating and Accounts Procedure Office
Order No.12/No.13 of 1968 issued by the COM/F.A.&.C.A.O. Detailed procedure to be
followed in the Accounts Offices for accountal and internal check are contained in Paras 55
to 60 of P.O.O.No.12 and Paras 26 to 29 of P.O.O.No.13. The accounts of locomotive fuel
are maintained by the DAOs and that of the fuel required for the workshops by the WAOs.
The audit of such transactions will devolve upon the Divisional/Workshop Audit Offices
concerned. The audit of centralised transactions detailed in Para 53 of P.O.O. No.12 and
Para 24 of P.O.O. No.13 of 1968 will devolve upon the Stores Headquarters Audit Section.
The extent and periodicity of audit of fuel accounts will be the same as those
applicable to similar stores items. This monthly audit is in addition to the items specifically
provided for coal in the programme of audit and would be applicable to other fuel items also.
Accordingly, the extent and periodicity applicable to Stores Audit as per Programme of Audit
will also apply to the following items of audit of Coal/HSD Oil Accounts.
(C.A.G.'s letters.No.806-RAI/8-3/68 dated 16.2.68 and No.1364-RAI/8-3/68
dated 8.4.69)
Stores Audit Programme - Item No.
(in the Memo of Instructions) Name of the Item
1. 2.

1. II Receipt Returns
2. III Delivery Notes
3. IV Ledgers
4. V(1) Monthly Statements of Stores
Account Current
5. V(3) Sales Abstracts
6. VII Suspense Registers.
7. VIII Stock sheets - Verification
8. X Stores-in-transit Register
9. XI Stock Adjustment Account
Register.
185
Separate selection should be taken for the audit of accounts of Coal and HSD
Oil.
639. Audit of Coal Issue Notes: The issue notes are accounted for through Statement of
Daily Issues, one copy of which is submitted by the sheds to the Accounts Office along with
the issue notes. The issue notes should be traced into the Statement of Daily Issues which, in
turn, should be traced into the Monthly Balance Sheet submitted by the sheds.
The total receipts shown in the Monthly Balance Sheet should be tallied with
the total debits raised by the Headquarters Fuel Accounts Section.
While checking the Account Current, the allocation for issues of coal should
be verified with reference to the statements showing coal issues to different services
submitted by the sheds.
640. Audit of Priced Ledgers: Separate Priced Ledgers are maintained for each class of
coal/oil in respect of each shed. All the Priced Ledgers should be reviewed once a year,
taking a few ledgers for audit every month. In addition to the general review of the ledgers,
the following points should also be seen:
(1) The receipts and issues as per Monthly Balance Sheet submitted by the sheds have been
correctly abstracted for each grade of coal shed-wise and posted in the Priced Ledger.
(2) The value of the receipt side is posted as per debit raised by the Central Fuel Section
(Headquarters).
(3) Issues are valued at the rates advised by that section,and
(4) Handling charges are added to pit-mouth cost and in the case of sales, supervision
charges are also added.
641. Suppliers Bills: During the audit of these bills, the general principles laid down in
Chapter-XVII of the Railway Audit Manual for check of Stores Suppliers' bills should be
borne in mind.
In addition to this, it should be seen that -
(i) the bills are checked in the Accounts Office with the Wagon Disposal Statements for
verifying the quantity and grade of coal received;
(ii) the rates claimed in the bills agree with the rates given in the Price Control Order of
the Government of India;
(iii) the quantity of coal supplied is covered by the programme issued by the Coal
Controller.
642. Coal Handling Contracts: The extent of audit of coal handling contracts will be the
same as that applicable to works contracts. Contracts entered into by the COM will be
audited by the Expenditure Headquarters Audit Section and those entered into by the DRMs
will be audited by the Divisional Audit Offices.
186
643. Coal Handling Bills and Ash Pit Clearing Bills: These should be audited as
Contractors' Bills to the extent prescribed.
644. Sale of Coal: A monthly statement of sale of coal/cinder is submitted by the sheds to the
Accounts Office. It should be seen that the sale of coal to Railway employees is made on
cash basis. Correctness of the rate for the coal sold to employees, catering contractors,
Railway and non-Railway officials etc. and the competency of the officials effecting such
sale should also be checked.
645. Review of the Suspense Registers(Fuel): The following suspense registers are
maintained in the Fuel Section of the Accounts Office separately for coal and diesel oil:
(1) Cap. 7100 - Stores
(2) Cap. 7100 - Stores in Transit
(3) Cap.7100 - Stock Adjustment Account
(4) Cap.7100 Sales
(5) Miscellaneous Advances(Capital)
(6) Deposit S- Sales to private party
The points to be seen during the review of the Stores Suspense Registers vide
Paras 320 and 321 of Railway Audit Manual apply in the case of these registers also.
The scope and extent of check laid down for the transactions of coal will apply
mutatis mutandis to the transactions of diesel oil.
646. Electricity used as Locomotive power: The instructions contained in Para 330 Sub-
Para 5 of Railway Audit Manual should be kept in view while checking the bills for the
power supply.
187
Annexure - I (Para 607)
Register of Review of Contracts relating to
Works and Purchase of Stores etc.
.
1.
(a) (i) Agreement/Purchase Order No. and date
(ii) Date of opening Tender
(iii)Date of TC meeting held
(b) Description of Works/Service/Supply etc.
(c) Name of the Contractor/Firm to whom awarded
(d) Rate accepted
(i) basic rate
(ii) excise duty
(iii) CST
(iv) APGST
(v) Freight
(vi) Insurance and
(vii) Discount clause, if any,
(viii) any other item.
(e) Quantity/quantum of Work/Supply involved
(f) Total value
(g) Type of Tender
2.
(i) Advertised Tender
(ii) Bulletin Tender
(iii) Global Tender
(iv) DGS&D Rate Contract
(v) Single Tender for propriety Articles
(vi) Limited Tender
188
(a) Whether the lowest tender was accepted.
(b) If not, whether the reasons for rejection of the lowest tender were placed on
record.
(i) Item technically not suitable
(ii) Unsolicited offer
(iii) Counter offer made by the firms
(iv) Any other reasons
3. Whether audit has questioned the discretion exercised by the competent authority.
4. Whether all the points mentioned in Paragraph 259 of Railway Audit Manual have
been covered.
5. Audit Comments.
6. Reference to Special Letter/Audit Note issued based on the observations with
reference to S.Nos. 3, 4 and 5 above.
7. Signature of the Officer who reviewed the Contract.

(P.O.O. No.88 of 12.06.1986 and P.O.O. No.143 dt. 23/29.1.2001)

.
189
Annexure - II (Para 614)
OFFICE OF THE PRINCIPAL DIRECTOR OF AUDIT, SOUTH CENTRAL RAILWAY
REGISTER OF PRODUCTIVITY TEST
(i) Proforma for adoption by Expenditure Headquarters Audit and Workshop & Stores Audit/Lallaguda Sections:
Sl. Name of the work Date of Date on Date of Date on Reference Attes-
No. due to be reviewed physical which the completion which to Audit tation
automatically or comple- producti- of the test audit comments, by REMARKS
selected by Railway tion of vity test and submi- review if any(give G.O.
Board/General Manager the work is due to ssion of the is com- the file
quoting reference to be comp- reports to pleted number)
Railway Board's or leted the General
General Manager's Manager/
sanction Railway
Board
1. 2. 3. 4. 5. 6. 7. 8. 9

190
Annexure - II (Para 614)
(ii) Proforma for adoption by Divisional Audit Officers, Audit Officers(Workshop & Stores) and Construction Audit Branches:
Sl. Name of the work Date of Reference to letter No. and
No. due to be reviewed physical date under which the date
automatically or comple- of completion has been
selected by Railway tion of advised to the head office Remarks
Board/General Manager the work
quoting reference to
Railway Board's or
General Manager's
sanction

1. 2. 3. 4. 5.

``
Ch.VII - Page 1 of 19
193
CHAPTER - VII
ESTABLISHMENT AND P.F. AUDIT
701. General: The Establishment Section is responsible for the audit of all charges relating to
Railway servants, both Gazetted and Non-gazetted. Instructions for the audit of
Establishment charges are contained in Section III of Chapter 2, 3, 6 and 11 of Manual of
Standing Orders(Audit) and Chapter XV of Railway Audit Manual. The relevant rules on the
subject are contained in the Indian Railway Establishment Codes, Chapters XII and XV and
Chapters XI and XII of the Indian Railway Code for the Administration and Finance - An
Introduction, Chapters X, XII, XIII and XIV of the Indian Railway Code for the Accounts
Department, Part I, the Indiann Railway Establishment Manual and Manual of Railway
Pension Rules. Special rules and procedures approved by competent authorities for
individual Railways should also be borne in mind.
The Establishment and Provident Fund Audit Sections corresponding to the
Establishment and Provident Fund Accounts Sections are as indicated below:
Accounts Office & Section Corresponding Audit
dealing with Establishment Office/Section
and P.F. Accounts
-------------------------------------- -----------------------------------------
F.A.&.C.A.O.'s Office Establishment Headquarters
Secunderabad
Divisional Accounts Offices - Divisional Audit Offices, Secunde-
Secunderabad, Hyderabad, rabad, Hyderabad,Guntakal, Guntur, Nanded
Guntakal and Vijayawada and Vijayawada - Establishment
- Establishment and P.F. Sections and P.F. Audit Sections.
Workshop & Stores Accounts Workshop and Stores Audit Offices,
Offices, Lallaguda, Lallaguda, Guntupalli and
Guntupalli and Tirupathi - Tirupathi
Establishment and P.F.
Sections.
Construction Accounts Construction Audit Sections at
Offices at Secunderabad, Secunderabad, Vijayawada and
Vijayawada & Rajahmundry.
Rajahmundry.
Internal check of all establishment charges relating to the Indian Railways
Institute of Signal Engineering and Telecommunications, Secunderabad and Railway
Recruitment Board, Secunderabad, C-TARA and Railway Claims Tribunal is done in the
Financial Adviser and Chief Accounts Officer's Office, Secunderabad and consequently, the
responsibility for the audit of these charges on the Railway devolves on Establishment
Headquarters Section.
Provident Fund Accounts of the Gazetted Officers of all the Departments and
of the non-gazetted employees of Security Department and the Survey and Construction
194
Organisations are dealt with in the Financial Adviser and Chief Accounts Officer's office,
Secunderabad. Audit of these P.F. Accounts is accordingly conducted in Establishment
Headquarters Section. The Provident Fund Accounts of the staff of Construction Accounts
Offices are maintained in the respective Divisional Accounts Offices. They are audited by
the respective Divisional Audit Offices. The Provident Fund Accounts of the staff of the
Office of the Principal Director of Audit maintained in the Office of Financial Adviser and
Chief Accounts Officer are also audited in the Establishment Headquarters Section, as locally
decided by the Principal Director of Audit.
702. Audit of Sanctions: The general principles of audit of sanctions and the method of audit
mentioned in the Chapter on "Expenditure Audit" apply to the sanctions relating to
establishment charges also.
(Paras 2.2.34 to 2.2.45 - Manual of Standing Orders(Audit) and Paras 6, 7,
132, 133 and 202 of Railway Audit Manual).
The sanctions dealt with in the Establishment Audit Sections generally relate
to:
1. Creation, extension to currency or abolition of posts.
2. Fixation of pay.
3. Honoraria and fee
4. Rewards
5. Retention of quarters
6. Advances
7. Forfeiture of Provident Fund
8. Withholding of special contribution to Provident Fund
9. Write off of over-payments
10. Ex-gratia payment etc.
11. Special sanctions accorded by Board/General Manager/HOD relating to
reimbursement of heavy amounts of medical expenses of personnel who have
undergone treatment outside Railway Hospital, and
12. HOD sanctions in regard to Messing Advance to certain personnel of Security
Department.
The sanctions should be audited with reference to the canons of financial
propriety, the Schedule of Powers and the scales of pay sanctioned by the Railway Board
from time to time. The scrutiny of sanctions should cover a review of the Accounts Office
files containing the proposals therefor and the financial concurrence etc. and also
departmental files wherever necessary. All sanctions coming up for audit should be put up to
the Branch Officer with notes containing the results of the review of the files.
All the sanctions for the creation or abolition of posts and those for conversion
of temporary posts into permanent posts should, after scrutiny and acceptance in audit, be
traced into the Scale Check Registers/Cadre Registers maintained in the Accounts Office. It
should also be seen that sanctions for creation of temporary posts and their extension are
posted in the Limited Currency Registers/Scale Check Registers for temporary establishment
maintained in the Accounts Office for watching the operation of the posts only for the periods
sanctioned. The Railway Administration creates new posts in the non-gazetted cadre in any
of the Revised Scales shown for the category in the schedules of existing and Revised Scales
of Pay issued by the Railway Board, with the concurrence of the Financial Adviser and Chief
195
Accounts Officer. In respect of sanctions for creation of new posts by authorities subordinate
to the Railway Board, it should be ensured that such posts are included in the schedules of
existing and Revised Scales of pay issued by the Railway Board.
Important objections raised on Railway Board's sanctions and all major Audit
objections raised during the previous quarter on any other subject not covered by the above
two categories, should be included in the Quarterly Arrear Report (Proforma 'A').
703. Audit of Pay Bills: The field is divided into prescribed number of units, separately for
Gazetted Officers and Non-Gazetted Officers and the required number of units selected is
audited monthly. Even if some items are only selected from a pay sheet, the correctness of
totals and allocations of the entire paysheet should be checked completely.
(Paras 3.2.1 to 3.2.9 of Manual of Standing Orders(Audit) and Paras 201-221
of Railway Audit Manual).
Separate selections should be taken in regard to pay bills pertaining to Family
Planning Unit and such pay bills audited every month and not when Medical Unit Pay Bill is
selected for audit.
Consequent on the judgement of the Supreme Court, the Ministry of Railways
have decided that the employees of Statutory and Non-Statutory (recognised) canteens should
be treated as Railway servants with effect from 1.4.1990. Therefore, the staff canteens on
South Central Railway should be included in one of the prescribed units into which the whole
field is divided. The contents of Railway Board's Lr.No.E(W)91/CN/Master Circular No.38
dated 29.11.1991 are to be kept in view while conducting audit.
(Authority: P.O.O. No.122 dt.23.12.1991).
To maintain an element of surprise, different months of account may be
selected for Gazetted Officers and Non-Gazetted Officers pay sheets and audited in the 3
rd
or
4
th
following month.
Supplementary bills relating to the unit selected should also be included in the
selection.
In addition to the points to be seen during the audit of vouchers, in general,
vide Para 269 of Railway Audit Manual, the check of the pay bills will include the scrutiny of
the following:
1. Fixation of pay on first appointment and refixation of pay.
2. Appointment.
3. Leave Salary
4. Subsistence allowance
5. Dearness, House Rent and other allowances.
6. Provident Fund recoveries.
7. Rent, water, conservancy etc. charges
8. Electrical energy charges
9. Diet charges
10. Other recoveries
11. Recovery of advances
196
12. Scale or Cadre Check
13. Allocation.
14. Transport Allowance.
704. Fixation of pay on first appointment and re-fixation of Pay: All cases of fixation of
pay on first appointment and refixation of pay should be audited to the extent prescribed. In
regard to the general revision of scales of pay, including upgradation of certain categories of
staff, orders of Principal Director of Audit should be obtained regarding the extent of check.
705. Officiating appointment: Railway Board's letter No .E(G)64/EC2/6 dated 9
th
July 1964
indicates the manner in which short term vacancies may be filled. According to this letter,
short term vacancies may be filled in normal manner in cases where
(a) the duration of the vacancy exceeds 30 days or
(b) the total duration of a continuous chain of vacancies of shorter periods exceeds 60
days.
Officiating promotions in vacancies of 30 days' duration or less may be made
only in exceptional circumstances with prior personal approval of the Head of the
Department. This is subject to certain exceptions contained in Railway Board's letter No.
E(R)/49-RS-3 dated 1st July 1949,No. E(T)53-TRR-57 dated 6
th
August,1955 and No PC-
60/PP-1/1 dated 11
th
July, 1961. As regards the officiating appointments of running staff, it
should be seen that they are according to the special rules applicable to them.
706. Leave Salary: Leave salary should be checked with reference to the absentee statements
and last pay drawn. Correctness of Dearness and other allowances drawn during the period
of leave should also be checked.
707. Subsistence allowance: Subsistence allowance drawn in the pay bills coming under
audit or drawn separately, but pertaining to the unit selected for audit, should be checked. It
should be seen that the subsistence allowance is drawn in accordance with Para 1342.R.II.
The subsistence allowance and other allowances granted to the employees under suspension
should be traced into the register maintained by the Accounts Office for subsequent
adjustment when the disciplinary authority passes final orders regarding the pay and
allowances to be paid to the employees for the period of suspension.
708. Dearness Allowance and other Allowances: The auditors should maintain ready
reckoners showing the rates of Dearness Allowance, House Rent Allowance, City
Compensatory Allowance, Night Duty Allowance, National Holiday Allowance, Running
Allowance, Over-Time etc. applicable to the different pay ranges and to different areas, in the
register maintained in terms of Para 111 of Railway Audit Manual for ready reference during
audit.
In the case of over-time allowance, running allowance, night duty allowance
etc. it should be seen that particulars of over-time hours/mileage/hours of night duty and the
amount of allowances are indicated in the pay bills and are correct. It should also be ensured
197
that employees in respect of Night Duty Allowance etc. belong to the category entitled for
such allowances. In the case of Transport Allowance, it should be ensured that it is not drawn
during leave, training tour etc exceeding 30 days.
709. Payment of out-turn allowance to Signallers/Teleprinter Operator: Payment of out-
turn allowance to signallers is governed by the instructions contained in Railway Board's
letter No.E(P&A)II/86/AL/1 dt.15.12.1989 read with letter No.E(P&A)T-98/A14
dt.12.2.1999. Detailed check of the payment of out-turn allowance (for one month) is
exercised during the inspection of the office of Divisional Railway Manager(Signal and
Telecommunication). During central audit, the check in respect of this allowance may be
confined to check of arithmetical accuracy of the amounts paid.
710. Provident Fund Recoveries: The correctness of the Provident Fund subscription
recovered should be checked. It should be seen that recovery is made from all staff who have
completed one year's service. This can be generally checked by seeing that recoveries are
made from all those who have drawn the first increment in their pay scale. (further reference
to Para 731)
The deductions made in the selected pay sheet should be traced into the
deduction lists. Tracing of Provident Fund deductions appearing in the Labour Pay sheets in
deduction list and from the latter to the Provident Fund Ledgers should be done to the extent
prescribed in respect of the employees included in the Labour Pay sheets checked during
inspection.
The Provident Fund Accounts of Gazetted Officers and employees of
Headquarters including Construction Headquarters are maintained in the Financial Adviser
and Chief Accounts Officer's office and the Provident Fund Accounts of the Construction
Accounts staff are maintained in their respective Divisional Accounts Offices. The
Divisional, Construction and Workshop Audit offices should send statements to
Establishment Headquarters Section and to the concerned Divisional Audit Offices furnishing
the names, Provident Fund Account numbers and the amounts of Provident Fund recovery of
all the Gazetted Officers and Non-Gazetted Officers selected for audit. The Establishment
Headquarters Audit Section and the Establishment section of the Divisional Audit Offices
should make use of these statements for tracing the Provident Fund recoveries into the
connected Provident Fund Accounts and for the audit thereof.
Similarly, in respect of staff of this office, the Administration section should
also furnish every month a copy of the General Provident Fund recovery statement to the
Establishment Headquarters Audit section every month for tracing the Provident Fund
recoveries into the connected General Provident Fund Accounts.
(Au/EHQ/Secret/1/4 dated 22.10.1981).
711. House Rent, Water and Conservancy Charges: The pay bills of the unit selected for
audit should be completely checked. In respect of pay bills for other months, variation
statements relating to the unit selected for audit should be linked with the variation statements
of the previous months, if necessary. The correctness of the water charges recovered should
be checked with reference to the type of quarters and the rates fixed by the Railway
Administration, from time to time.
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712. Electricity Charges: The Electricity charges are centrally fed by the Electrical
Department. The correctness of these charges to be verified by the concerned divisions
during their local inspections.
(Authority:
713. Diet Charges: Statements of Diet Charges are received in the Accounts Office every
month in respect of each paysheet unit. It should be seen that the bills are serially numbered
paysheet unit-wise and the missing numbers should be called for by the Accounts Office.
Recoveries actually made through the pay bills, as indicated in the copies of the diet charges
statements attached to the paysheet, should be compared with the recovery statement received
in advance in the Accounts Office. It should also be seen from the statements received in the
Accounts Office that recoveries are promptly made and action is taken wherever necessary.
The diet charges wherever directly fed by the Medical Department, the correctness of these
charges are to be verified during local inspections.
(Authority:
714. Other Recoveries: It should be seen that the amount of school fee, Railway Institute
fee, Court attachment etc. actually recovered in the pay bill agrees with the amount shown in
the deduction statements. In regard to school fee, it should also be seen that the rates are
correct.
715. Recovery of Advances: It should be seen that the recoveries towards repayment of
Advance of Pay, Leave Salary, Festival Advance, Conveyance Advance, House Building
Advance etc. are promptly made in the pay bills as per extant orders. The entries in the
recovery statements should be checked with reference to the actual recoveries made in the
paysheets.
In case of an incumbents transfer from one bill unit to another, the recovery
particulars advised through the Last Pay Certificate (LPC) should be verified to ensure
prompt recovery.
The Register of Travelling Allowance Advances and the Register of Leave
Salary Advances maintained in the Accounts Office should be reviewed every month along
with the audit of pay bills. In respect of items relating to the unit, it should be seen that there
is no delay in recovery of the advance or that there are no old items outstanding.
716. Scale Check: With reference to the pay sheets selected for audit, the actual number of
posts operated should be traced into the Scale Check Registers. Scale check should be done
for the entire paysheet and not for the selected items only. It should be ensured that cases of
operation of posts in excess are placed under objection.
717. Allocation: The correctness of allocation should be checked. The amounts allocated
should be traced into the Works Registers or Revenue Allocation Registers, as the case may
be, in respect of the bills audited.
718. Unpaid Wages: The unpaid amounts in the bills selected for audit should be traced into
the unpaid wages statement.
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719. Labour Pay Sheets: Labour pay sheets are required to be checked during local
inspections. All the points to be seen during the audit of regular pay bills of Non-Gazetted
Officers should be looked into during the audit of paysheets of regular gangs also.
720. Travelling Allowance Bills: The travelling allowance of Railway employees other than
Gazetted Officers, Workshop staff and running staff is included in the regular salary bills.
The travelling allowance journals of staff whose pay exceeds the prescribed limit are
submitted to the Accounts Office every month by the bill passing officers, in duplicate. After
internal check, one copy is returned to the bill passing office and the amounts accepted by the
Accounts Office are included in the Pay Sheets. Audit of travelling allowance bills is
confined to the employees selected for audit of pay bills. The connected travelling allowance
journals should be obtained from the Accounts Office and audited. Travelling Allowance
J ournals which are not sent to the Accounts Office should be seen during inspections.
Wherever travelling allowance is drawn in separate bills, selection should be taken for audit
in the same manner as for pay bills.
(Paras 3.2.15 of Manual of Standing Orders(Audit), Para 222 of Railway
Audit Manual and Paras 1213-1214 of Accounts Code I).
721. Points to be seen during the audit of Travelling Allowance Bills: In addition to the
points mentioned in Para 222 of Railway Audit Manual, the following points should also be
seen during the audit of Travelling Allowance Bills:
1. The rate of pay indicated in the Travelling Allowance J ournals should be checked
with the rate of pay given in the pay bills.
2. Taxi hire should be checked with reference to the instructions contained in Para 726
of the Indian Railway Establishment Manual.
3. In respect of journeys by air, the sanction of the competent authority is available
wherever necessary, vide Paras 1636-1639 of the Indian Railway Establishment
Code, Vol.II.
4. Necessary sanction has been obtained for the journeys beyond the sphere of normal
duties and for continuous halts beyond the limits fixed, and
5. Necessary certificates are recorded on the Travelling Allowance J ournals.
As the Travelling Allowance J ournals in respect of staff whose pay does not
exceed the prescribed limit per month are kept in the departmental offices, they will be
checked during local inspections. Number of days and the rates of daily allowance are shown
in such cases in the pay sheets. The correctness of the amount of Travelling Allowance
drawn should be checked with reference to these particulars.
722. Pay Orders for Payment of unpaid wages: Pay orders for payment of unpaid wages
should be audited in accordance with the instructions contained in Para 386 of Railway Audit
Manual.
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723. Journal Vouchers: See Para 620 of Chapter VI of this Manual on 'Expenditure Audit'
(Current Review selection of J ournal Vouchers should follow the pattern of selection for
audit).
724. Payments under Workmen's Compensation Act: Payments under Workmens
Compensation Act should be audited with reference to the provisions of the Act. Railway
Administration's files containing the original accident report, medical report, enquiry
committee reports, etc. if any, should be referred to. It should be seen inter alia that:
1. the person concerned belongs to the category of staff eligible for compensation under
the Workmen's Compensation Act,
2. the fact of the injury and the nature of the injury are properly certified and the injury
has not been attributed to negligence,
3. monthly wages for assessing the compensation, the amount of half monthly payment
and lumpsum compensation are correctly calculated, and
4. half monthly payments are adjusted against the final payment.
It should also be ensured that in respect of Railway accidents, Railway men
are paid compensation either under Workmen's Compensation Act or under the Indian
Railway Act depending upon whether the Railway men were working in the train or were
travelling as passengers at the time of accident.
(Para 1201 RI, Chapter XXIII of Indian Railway Establishment Manual and
Para 232 of Railway Audit Manual).
725. Advance of Pay, Travelling Allowance, Leave Salary etc.: It should be seen that the
advances are sanctioned (in accordance with the rules contained in Chapter X of Indian
Railway Administration and Finance - An Introduction) by authorities competent to do so and
that the payments are correctly posted in the Registers of Advance to ensure recoveries.
While tracing the postings in the 'Advances' Registers, it should be generally seen that there
are no delays in the recovery of advances or that there are no old debits outstanding. In the
case of Advance of Pay/Travelling Allowance on transfer, it should also be seen that these are
correctly indicated in the Last Pay Certificate. In respect of Travelling Allowance Advances,
it should be verified whether they have been adjusted on completion of journey or by 31st
March, whichever is earlier. In respect of advances granted in March, it should be seen that
they are recovered before 30
th
April.
(Paras 1001-1015 of Administration and Finance, Paras 1217and 1218 of A-I,
and Paras 3.13.14 to 3.13.16 of Manual of Standing Orders (Audit) and 220 of Railway Audit
Manual).
726. Festival Advance: Festival Advance drawn in the pay sheets selected for audit should
be checked. (ADAI (R)'s letter No.RAI/8-7/66/Vol.I dated 27.10.1967). It should be seen that
the advance has been drawn by the employees before the date of the festival and not later
than that date and that the advance is not paid to any employee whose pay is beyond the
prescribed limit. Under the revised procedure for the recovery and accountal of festival
advance, the Accounts Office registers will show only the total amount of advance drawn in
each pay sheet for each festival. The correctness of the posting of the total amount relating to
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each pay sheet unit in the Accounts Office Register should be checked. Instructions laid
down in Railway Board's letter No.61/AC.II/21/25 dated 26.11.1962 and 8.6.1965 may also
be borne in mind.
727. Medical Attendance Bills of Gazetted Officers: Medical Attendance Bills of Gazetted
Officers serving or retired, should be audited to the same extent as pay bills. The rules
contained in Chapter 6 of the Indian Railway Establishment Code Volume-I, should be borne
in mind. The following points should be specially seen:
1. The Officer has been duly authorised to undergo treatment in the Government
hospitals before hand or in emergent cases, ex-post facto sanction has been given by
the competent medical authority.
2. The claim has been preferred within six months from the date of completion of
treatment.
3. The claim for reimbursement of charges is supported by vouchers and certificates in
writing by the Authorised Medical Attendant.
4. In the case of refund of cost of medicines, the Authorised Medical Attendant has
furnished a separate certificate of essentiality under the extant orders.
5. If the claim is for refund of charges for treatment at the residence of the employee, the
Authorised Medical Attendant has given a certificate stating the reasons for giving
treatment at the residence and the cost of such treatment as he would have been
entitled free of charge to receive if he had not been treated at his residence.
728. School Fee Bills: Educational assistance is admissible to all regular Railway employees
whose pay is debitable to Railway Revenues in accordance with the instructions contained in
Railway Board's letter No.E/W/84.EDI-1 dated 4.10.1985 as amended from time to time.
During the audit of Educational Assistance Bills, the following points should be seen.
1. The child/children in whose favour the assistance is claimed is/are eligible for it.
2. The assistance is admissible in respect of classes/courses for which the claim has been
made.
3. The pay limit of the employee for eligibility of the assistance is not exceeded.
4. The school in which the child studies is a recognised one and of requisite standard.
5. Prescribed certificates are produced by the employee,and
6. The allowance claimed is according to the rates prescribed.
729. Reimbursement of Tuition Fees: Reimbursement of Tuition Fee is admissible to
Railway employees according to Railway Board's letter No.E/W/84 EDI-I dated 4.10.1985 as
amended from time to time provided no Childrens Educational Allowance is admissible to
such Railway servants. The reimbursement is restricted to tuition fee only and will not cover
Domestic Fund charges, Library Fee, Games fee, Admission fee and extra curricular activity
fee.
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Bills for reimbursement of tuition fees in respect of children of Railway
employees (both Gazetted and Non-Gazetted) should be audited to the extent prescribed vide
CAG's letter No.3023-RAI/8-14/64 dated 17.10.1966.
Where claims for reimbursement of tuition fees are included in the salary
bills/labour pay sheets, all the claims included in the bills selected for audit should be
checked.
(CAG's letter No.355-RAI/8-1/72 dated 31.1.1972).
It should be seen during the audit of the claims for reimbursement of tuition
fee that the claims are paid in respect of the classes permissible, at the rates prescribed, and
are supported by the certificates prescribed. The records indicating the particulars of the
children, amount of tuition fees claimed, certificates produced in respect of the claim etc.
should be checked during local Inspections.
730. Staff Benefit Fund: Contributions from the Railway revenues should be checked with
reference to Para 805 of R.I. (This should be done by Establishment Headquarters Audit
Section). It should be seen that the expenditure has been incurred only on objects covered by
the Railway Board's policy as well as local rules. Sanctions need not be audited as a separate
item.
(Chapter 8 of R.I. and Para 247 of Railway Audit Manual).
In addition to the check of one month's accounts in a year, a general review of
the accounts of the entire year may be carried out. The accounts of the grantees to whom
substantial lumpsum grants were sanctioned during the year may also be checked after
obtaining the orders of Principal Director of Audit.
(ADAI(R)'s letter No.798-RAI/17-6/66 dated 18.3.1967).
731.Audit of Provident Fund Accounts: Audit of Provident Fund section should be
conducted during the month of October / November (after PF ledgers for the previous year
were closed) annually to the extent specified in SMI (Appendix to Chapters on Railway
Audit Norms).
During the audit of the ledger accounts, it should be seen whether the
contributions credited to the account in the previous half-year are correct, whether the closing
of the account and the calculations of interest for the previous year have been correctly done
according to the rate of interest applicable to the persons concerned, whether recoveries on
account of advances are being regularly made in accordance with the rules. In the case of
new accounts, it should be seen whether the employee is eligible to subscribe to the Fund.
The deductions made from salary bills of Gazetted Officers and Non-Gazetted
Officers towards Provident Fund should be traced into the deduction sheets and the latter into
the ledgers maintained by the Accounts Office. Instructions contained in Para 710 of this
Manual may be borne in mind.
(Chapter 9 of RI, Chapter IX A.I. Section III - Chapter 11 of Manual of
Standing Orders (Audit) and Para 237 et seq. Railway Audit Manual).
203
732. Temporary Withdrawals from Provident Fund: All advances from Provident Fund
which are recoverable are treated as temporary withdrawals.
It should be seen that the advances have been sanctioned by the competent
authority and that the conditions under which such advances can be sanctioned are fulfilled.
In respect of temporary withdrawals for financing insurance policies (Paras
927-938-R.I.), it should be seen that the insurance policies have been assigned to the
President and delivered to the Accounts Officer. The temporary advances passed in such
cases should be traced into the Register of Insurance Policies maintained by the Accounts
Office. It should be seen that the particulars of the receipts for the Insurance Premia are
noted in the registers and where the employees have defaulted in paying the premia, action
has been taken in terms of G.O.I decision under Rule 937-R.I. In cases where the policies
have matured before the retirement of the employee, it should be seen that the total amount
withdrawn with interest has been repaid to the fund by the employee.
(Paras 922-23 of R.I., Para 3.12.6 of Manual of Standing Orders (Audit) and
Para 238 of Railway Audit Manual).
733. Final Withdrawals from Provident Fund: All withdrawals from Provident Fund in
full or in part which are not recoverable should be treated as final withdrawals and audited in
accordance with the instructions contained in Para 233 of Railway Audit Manual. It should
be seen in settlement cases that the interest upto the date of tendering payment have been
correctly calculated and that all the amounts due from employees have been ascertained. In
the case of deceased employees, it should be seen that the payment is made to the persons
legally entitled to receive the same.
(Paras 924-925-940 of R.I. and Para 239 of Railway Audit Manual).
734. Reconciliation of Provident Fund Ledger Accounts with General Books:
Reconciliation of Provident Fund Ledgers with General Books should be reviewed every
month. The postings from the individual ledgers into the check sheets should be traced in
respect of Provident Fund accounts checked. Totals of the check sheets in respect of these
and other Provident Fund accounts relating to the unit selected for the audit of pay bill should
be checked completely and traced with the Departmental summary. Totals for all
Departments should be traced into the Summary Ledger. The grand total should then be
reconciled with the General Books. Detailed procedure for the reconciliation of Provident
Fund Ledgers with General Books under the simplified procedure laid down in Railway
Board's letter No.63/AC.II/Dir(Spl)21 dated 22/24.8.1964 may be borne in mind.
It should also be seen that differences are analysed and rectified immediately.
735. Interest Credits: In checking the interest credits, the instructions contained in Para 240
of Railway Audit Manual should be borne in mind.
736. Verification of pensionable service: Verification of service of pensionable employees
of other than Accounts Department should be done to the extent prescribed during
inspections. As Accounts Offices are not inspected, pensionable service of the Accounts
Office staff should be verified every month to the extent prescribed. In respect of the Service
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Register selected, it should be seen that the instructions issued by the Railway Board vide
letter No.57.ACII/21/20/Pension dated 9.5.1960 for verification of service of pensionable
employees are correctly followed. The correctness of the certificate of verification for the
first year of service and one intermediate year of service should be checked with reference to
the paid pay bills if available, or office copies of the pay bills and office orders or other
records. Last year of pensionable service should be verified with reference to the paid pay
bills when the pension cases are audited.
(Para 1230 of Indian Railway Administration and Finance - An Introduction).
737. Audit of Pension: Pensionary benefits granted to Railway servants in respect of their
service generally fall under one or other of the following categories.
1. Superannuation pension.
2. Retiring pension.
3. Pension on absorption in or under a corporation, company or body, owned or
controlled or financed by the Govt.
4. Invalid pension.
5. Compensation pension.
6. Compulsory retirement pension.
7. Compassionate allowance.
8. Service gratuity
9. Retirement gratuity.
10. Death gratuity.
11. Residuary gratuity
12. Family pension
13. Terminal gratuity.
Audit of pension consists in verifying that the qualifying conditions governing
the grant of pension are fulfilled and that the amount of pension sanctioned and drawn is
correct. The rules/instructions contained in Chapter.18-R-II, Section III Chapter 6 of Manual
of Standing Orders (Audit), the Manual of Railway Pension Rules embodying the provisions
of Liberalised Pension Rules 1950 and Para 249 of Railway Audit Manual should be borne in
mind.
All Railway employees who were pensionable on 15
th
November, 1957, non-
pensionable Railway servants who were in service on 15
th
November, 1957 and who elected
to come under the pension scheme and all persons entering Railway service on or after 16
th

November, 1957 except those who are appointed on contract or re-employed after
superannuation or whose terms of appointment specifically provide to the contrary are
governed by the Liberalised Pension Rules.
When the whole period of employment of an employee is in one or more of
the following capacities, no claim to pensionary benefits is admissible.
1. In part-time capacity (e.g., Railway Pleader)
2. As Casual Labour
3. As an Apprentice
4. In a non-pensionable post
5. In a post paid from contingencies
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6. Under a covenant or a contract which does not specifically provide for grant of
pensionary benefits.
7. Work done on payment of a fee or honorarium.
Pension is granted to a permanent Railway servant who quits service after
completion of minimum 10 years qualifying service. A permanent Railway servant who quits
service before completion of 10 years is given an ordinary gratuity but no pension.
A permanent Railway servant on quitting service, or his family/nominee in the
event of his death while in service, is entitled to retirement or death gratuity/pension or
family pension, as the case may be.
During the audit of pension, it should be seen that
1. the qualifying service is correctly arrived at with reference to Service Register entries,
2. the service records and leave accounts are properly maintained,
3. necessary certificate regarding service verification is recorded annually,
4. statement showing the pay drawn during the last ten months of service is checked
with Service Register and leave account to verify the correctness of the emoluments
of the ten months period,
5. the pay drawn in the last pay certificate and the outstanding dues etc. are correctly
reflected,
6. the fact of issue of payment authority for pension is noted on the Provident Fund
Ledger Account, and
7. a remark is given in the Service Register that the pension and DCRG have been
passed for payment.
(i) Compensation Pension or Gratuity: If a Railway servant is selected for discharge
owing to the abolition of a permanent post, he shall unless he is appointed to another post, the
conditions of service of which are deemed by the authority competent to discharge him from
service to be atleast equal to those of his own, have the option:
1. of taking compensation pension to which he may be entitled for the service he had
rendered, or
2. of accepting another appointment on such pay as may be offered and continuing to
count his previous service for pension.
(a) (ii) Invalid Pension: Invalid pension may be granted to a railway servant who
retires from service on account of any bodily or mental infirmity which permanently
in capacities him for the service, after undergoing the prescribed procedure for
medical examination
(iii) Superannuation Pension/Gratuity: A superannuation pension is granted to a Railway
servant rtired on attaining the age of compulsory retirement.
206
(iv) Retiring Pension/Gratuity: A Railway servant may retire from service at any time
after completing 20/30 years qualifying service, provided that he shall give in this behalf a
notice in writing to the appropriate authority, atleast three months before the date on which he
wishes to retire.
A Railway servant who retires or is required to retire in terms of Rule 1804-
R.II on or after attaining the age of 55 years shall also be entitled to a retiring
pension/gratuity.
A Railway servant who has completed less than ten years' qualifying service is
entitled to only a gratuity. Pension is granted to Railway servants who have completed ten or
more years' qualifying service. The amount of compensation, invalid or superannuation
gratuity/pension, will be the appropriate amount set out in the table given in Para 624 of
Manual of Pension Rules 1950.
(v) Retirement/Death Gratuity: A Railway servant on his retirement or his family in the
event of his death while in service, may be granted a retirement/death gratuity as specified in
Chapter VII of the Manual of Railway Pension Rules 1950.
738. Family Pension: Under the Family Pension Scheme for Railway employees 1964,
Family Pension at the scales mentioned in Chapter VIII of Manual of Railway Pension Rules
may be sanctioned to the widow/widower, unmarried son/daughter widowed divorced
daughter sons/daughters suffering from disorder or disability of mind or physically crippled
and dependent parents and to the minor children of a Railway servant who entered service on
or after 1st J anuary, 1964, or having entered service prior to that date has opted for family
pension, if such a Railway servant
i) dies while in service on or after 1st J anuary, 1964, after completion of not less than
one year's continuous service, or
ii) retires on or after 1st J anaury, 1964, and at the time of his/her death was in receipt of
compensation, invalid, retiring or superannuation pension.
While auditing family pension cases, the instruction contained in Chapter VIII
of Manual of Railway Pension Rules may be borne in mind.
739. Commutation of Pension: Only ordinary (Compensation, Invalid, Superannuation and
Retiring) Pension may be commuted. Commutation of family pension is not permissible.
The maximum amount of pension that can be commuted is 40% of the Pension rounded off to
the Rupee(Railway Board's letter No.F(E)III/97/PN.I/22 dt.5.11.1997).
It should be seen that the temporary increases allowed on the pension after
commutation is based on the gross pension that is, including the value of commuted pension.
The detailed instructions regarding commutation of Pension is given in Chapter XII of
Railway Board Manual which may also be borne in mind during the check of these cases.
740. Ex-gratia Pension: The extent of checks prescribed against pension payments applies to
ex-gratia pension granted with effect from 1.1.1967 to Railway employees who retired on
Provident Fund prior to 1.4.1957, after putting in 20 years service or more.
(ADAI(R)'s letter No.5016-RAI/4-1/17 dated 16.12.1967).
207
Adhoc increase in pension is not payable to retired employees in receipt of ex-
gratia pension. Payment of ex-gratia pension is arrange by the Railways themselves and not
through Accountants General.
741. Check of paid vouchers of pension: Paid vouchers of Pension should be checked
quarterly. Selection should taken with reference to the vouchers adjusted during the month
selected. The selected vouchers should be traced into the Pension Payment Register
maintained centrally at Headquarters (FA&CAO's) Office. For this purpose, the Divisional
Audit Officers/Audit Officers should send in the first week of J uly, October, J anuary and
April every year only the items of Pension Pay Orders connected with the pension cases
audited quarterly. The amount of Pension paid through the vouchers should be checked with
the Pension passed i.e., as indicated in the Check Register-Correctness of the adhoc increase
allowed should also be checked.
(Authority: Au/EHQ's Lr.No.Au/EHQ/1-4/Vol.III/187 dt.22.8.1991).
742. Check of paid vouchers/gratuity: All paid vouchers relating to the cases selected for
check of Death-cum-retirement gratuity should be called for and checked, when the DCRG
cases are checked. As this amounts to more than the prescribed percentage of the total
number of vouchers, a separate selection and check of paid vouchers is not necessary.
Separate selection should be taken in respect of vouchers of family pension.
The declaration regarding remarriage furnished by the pensioner every half year should also
be scrutinised in respect of the vouchers selected for audit.
743. Audit of Vouchers relating to Family Planning: Expenditure on Family Planning
Scheme incurred by the Railways is reimbursed by the Ministry of Health and Family
Planning, through the Director of Audit, Central Revenues. The Principal Directors of Audit
are required to furnish an yearly certificate to the Director of Audir, Central Revenues, to the
effect that the expenditure incurred on the Railway has been audited. To enable the Principal
Director of Audit to furnish the required certificate, it has been decided by the Comptroller
and Auditor General vide his letter No.2178-RAI/5-9/64 dated 31.7.1964 that the vouchers
relating to expenditure on Family Planning should be test checked after taking separate
selections to the extent prescribed in regard to the various classes of vouchers. It should also
be ensured that the charges billed for include additional charges in terms of Para 2021.R.II.
744. Audit of Contingent Expenditure: Contingent vouchers of Accounts Department
should be audited monthly to the extent prescribed. Contingent bills passed by the
Expenditure Accounts sections should be checked by Expenditure Audit section and those
passed by Establishment and Provident Fund Sections by the Establishment Audit section.
Contingent Vouchers of other than Accounts Department should be checked during Local
Inspection to the extent prescribed.
(Chapter X of Indian Railway Financial Code Vol.I, Rule 89, GFR-Section III,
Chapter 4 of Manual of Standing Orders(Technical) and Para 227 of Railway Audit Manual
and Appendix to the Chapters on RANs may be seen).
745. Fees and Honoraria: During the audit of fees and honoraria it should be seen that the
undertaking of work entitling the Railway servant for receipt/drawal of fees/honoraia has
been sanctioned by the Competent Authority in terms of Para 2035 R.II. It should be seen
that honoraria are paid at the rate prescribed by the Railway Board.
208
The register maintained in the Accounts Office to record the particulars of the
employees authorised to accept fees should be reviewed. It should be seen that the Railway's
share has been correctly assessed and recovered before making payment to the employee.
When sanctions are accorded by the competent authorities for the acceptance of fees by
employees and these are scrutinised in audit, it should be seen that the particulars are duly
recorded in this register. The register should be reviewed to see that the fees have been
actually credited in full that Government's share has been worked out correctly before making
the payment to the employee.
(Para 1334 of R.II and Paras 2213, 2216 of R.II and Para 213 of Railway
Audit Manual).
746. Review of Scale Check Register/Cadre Register: The annual review of Scale Check
Registers, will be done to ensure that the entries made in regard to the sanctioned posts are
correct with reference to the previous Scale Check Register and the sanctions accorded
during the year. It should be seen that sanctions to temporary establishment are recorded
separately in the Scale Check Register. In respect of sanctions for temporary posts, it should
also be seen that the posts are not operated beyond the date of currency, and wherever the
posts are operated beyond the date of currency, the same have been noted in the Provisional
Payments Register.
747. Leave Account: Lists of all Gazetted Officers of all Departments and non-Gazetted
Officers of Accounts Department should be maintained upto date and selected for audit.
The selected leave accounts should be checked completely from the
commencement of service or from the last entry checked in audit. Personal files containing
the leave applications may also be referred to verify the correctness of the entries in the leave
account.
(Para 3.3.8 of Manual of Standing Orders(Audit) and Para 228 of Railway
Audit Manual).
748. Register of Irregularities, Losses and Overpayments waived - maintained in the
Accounts Office: The registers maintained in Establishment and Provident Fund sections
should be reviewed. In the case of write off, it should be seen that each case has been
sanctioned by the competent authority. The connected files should be examined to see
whether adequate action has been taken to obviate the recurrence of the irregularities. Undue
delay in finalisation of important cases should be taken up with the Administration.
(Paras 861 of A-I and Paras 492 and 477 of Railway Audit Manual).
749. Disallowance Lists: The disallowance lists and objections should be reviewed to see
that proper action is taken to clear outstanding items. Cases where the objections have been
dropped without adequate grounds should be taken up.
It should be seen whether the objections raised reveal any special features or
irregular procedure requiring further investigation in audit, whether there has been generally
any inordinate delay in the disposal of the objection and whether the objections have been
regularised satisfactorily.
209
(Paras 846 to 851 of A-I, Chapter XI of Indian Railway Administration and
Finance - An Introduction and Para 224 of Railway Audit Manual).
750. Miscellaneous Advances including House Building and Motor Car Advances and
Deposits Miscellaneous: The registers maintained in the Establishment and Provident Fund
Sections should be reviewed annually in accordance with the instructions contained in Paras
610 and 614 of A.I.
(Paras 223 and 225 & Chapter VI-A-I, and Paras 381 and 382 of Railway
Audit Manual).
751. Cost of Order Police: The Railway Administration is required to satisfy itself of the
correctness of the debits raised by the State Governments with reference to the statements
sent by the latter in support of the debit schedules. The adjustments effected by the Financial
Adviser and Chief Accounts Officer should be scrutinized to see if the debits are in
accordance with the arrangements in force for charging to the Railway 50% of the cost of
order police and in accordance with the strength of Police staff fixed by competent authority.
(Paras 856 to 866 of Indian Railway Financial Code-Vol.I).
752. Register of Foreign Service Contributions: The recoveries of foreign service
contributions should be checked with reference to the rules and instructions contained in
Paras 2006-2012 and 2021-R.II, Para 1221-A.I & Para 219 of Railway Audit Manual. The
entries in the register should be checked with reference to
(i) the previous year's register,
(ii) the register of last pay certificates in regard to staff transferred out of the
Railway, and
(iii) sanctions for transfer whenever such sanctions come under audit.
753. History of Services of Officers of the Railway Department: Selection should be made
separately for Accounts and other than Accounts Department. The correctness of the entries
made in the statement should be checked with reference to the original records of service
maintained in the Accounts Office.
754. Audit of transactions relating to Deposit Linked Insurance Scheme: These payments
should be checked to the same extent and in the same manner as for final withdrawals from
Provident Fund. It should be seen that the average balance for the last 3 years before death
has been correctly worked out.
755. Audit of Railway Employees Group Insurance Scheme: The scope of check is
mentioned below.
(a) Office copies of the Schedule (as per Annexure 'A' of the accounting procedures
prescribed under Para 3 of Railway Board's letter No.79 ACII/1/4 dated 18.11.1981)
attached to the Bill for the month of J anuary each year should be checked with
reference to the pay bills during inspection of executive offices.
210
(b) The nominations made by Railway servants under the scheme may be verified while
checking the service books during the inspection of the executive/personnel offices.
In the case of staff of the Accounts Office for which there is no local inspection, the
check at (a) above should be carried out in Central Audit as an annual item. The
check at (b) above should be done every month along with check of Service Registers
of Accounts Office staff.
(c) Payments from Insurance Fund and Savings Fund as recorded in the Register as per
Annexure (B) Pt.II and III to the accounting procedure ibid should be checked to the
extent prescribed, with reference to the table of benefits admissible, as issued by the
Railway Board, and nominations made by the Railway servants, as posted in their
service records, and
(d) Based on the advance schedules showing total recoveries and payments during a
month furnished by the various Divisions/Workshops/other units, the Financial
Adviser and Chief Accounts Officer (Central Book Section) arranges payment of the
net amount to the Pay and Accounts Officer, Ministry of Finance (Department of
Expenditure). The advance schedules as consolidated in the Financial Adviser and
Chief Accounts Officer's Office should be checked once a year to see that the total
amounts of recoveries and payments which determine the net amount payable to the
Ministry of Finance agree with the corresponding amount in General Books. This
check will be exercised by Books and Budget Headquarters Audit section.
(CAG's letter No.70 RAI/77 dated 1.3.1984).
756. Audit of Productivity Linked Bonus Bills: The Productivity Linked Bonus Bill is to be
audited as prescribed vide Comptroller and Auditor General's Secret letter No.898-RAII/4-
25/79 dated 28.9.1981. Selection should be made so as to cover the bills relating to more
than one Department of the Railway Administration. The scope of check should cover in
particular the eligibility of individual employees for bonus and method of computation
adopted for determining their wages per day.
757. Audit of charges debitable to 345-A and 345-B - Indian Railway Miscellaneous
Railway Expenditure: These charges relate to Indian Railways Institute of Signal
Engineering and Telecommunications, Secunderabad, Railway Recruitment Board,
Secunderabad, RCT, C-TARA, Surveys etc. These are to be test-checked to the extent
prescribed for different categories of vouchers and accounts etc.

*********

Ch.VIII - Page 1 of 54
212
CHAPTER - VIII
BOOKS AND BUDGET INCLUDING APPROPRIATION
AUDIT
801. General: Self-contained accounting units have been set up in the six Divisions of this
Railway for the maintenance of accounts. Similarly, self-contained accounting units have
been attached to the Workshop Offices located at Lallaguda, Guntupalli and Tirupati and
Construction offices at Secunderabad, Vijayawada, Rajahmundry and Nanded. The
accounting of the Headquarters offices and consolidation of the accounts of the entire
Railway is done by the Books Section (Headquarters) of the Office of the Financial Adviser
& Chief Accounts Officer. Consequently, the Books and Budget (Headquarters) Audit
Section is responsible for the audit of the General Books and Accounts of the South Central
Railway including the audit of Capital and Revenue Accounts, Finance Accounts, Debt Head
Report, Appropriation Accounts and other connected statements. The work done in the
Divisions, Construction Sections and Workshop Sections of the Accounts Office is audited
by the corresponding audit units of this office. The duties of the Accounts Officer in regard
to the compilation of Railway Accounts are contained in Chapters II to VII of Accounts Code
Vol.I.
802. Computerised Accounting System: With effect from 1.4.1979, revised accounting
classification, (both for Revenue and Capital transactions) and restructuring of the demands
were introduced in the Indian Railways, with a view to computerising the financial
accounting system of the Railways. The computer based financial accounting system caters
for the timely preparation of the General Books, Account Current, Subsidiary Registers as
well as important management information reports.
On this railway, the following phases of accounting work have been
computerised.
1. Daily Cash Book and Monthly Revenue J ournal Book.
2. Revenue J ournal and Ledger.
3. Capital J ournal and Ledger.
4. Allocation Registers and statement of works expenditure.
5. Tabulation of service/suspense transactions.
6. Control over expenditure.
7. Account Current.
All transactions in the computer based documents are coded. The common (or
fixed) data to be coded in each voucher (CO7/J V/MCR/TCs) in the first 20 columns are:
1. Card code (CC) Col.1
2. Accounting Unit (AU) 2-3
3. Voucher Reference(Co7) 4-9
4. Books serial number 10-13
5. Date of accountal 14-19
6. Debit/Credit Indication 20
Variable data to be coded are:
213
1. Consignee code 25-29
2. Work/PO/SO number 30-35
3. Executive Voucher No(AM) 36-42
4. Spending Department Code 43-44
5. Guage Code 48
6. Voted/Charged Code 49
7. Demands Payable Code 50
8. Allocation & Primary Unit Code 51-58
9. Amount 59-70
The method of coding the fixed data in respect of certain columns in the
voucher is described below:
COLUMN:
1) Voucher type/Card Code (CC):- For each type of voucher/document i.e. CO7/RJ V/CJ V,
Summary of Misc. Cash Receipts and Traffic Cash summaries, a single digit card code is
allotted as follows:
1 for CO7, 2 for MCR, 3 for RJ V, 4 for Capital J V and 5 for
Traffic Cash summaries.
2) Accounting Unit (AU):- Each Accounting unit on the Railway has been allotted a 2 digit
code vide Annexure 1.
3. Voucher reference (CO7/RJ V/CJ V/MCR/TCs):- In this column 6 digits are entered, which
comprise of a 2-digit section code (in the high order) and a 4-digit serial number of the
voucher allotted by the section preparing the voucher (in the low order).
A list of sections preparing the CO7s and J Vs and the 2-digit codes allotted to
each is given in Annexure-II. The 4-digit serial number for each type of voucher ranges from
0001 to 9998. For example, if a section in an accounting unit prepares 153 CO7s and 98
RJ Vs in the commencing month, those CO7s and RJ Vs are serially numbered from 0001 to
0153 and 0001 to 0098 respectively. If another section in the same accounting unit prepares
concurrently 91 CO7s and 55 RJ Vs in the commencing month, those CO7s and RJ Vs are
serially numbered from 0001 to 0091 and 0001 to 0055 respectively.
The 6-digit voucher number is entered in the boxes marked Voucher by the
respective sections preparing the voucher.
4. Books section serial number (BKS SRL):- This represents monthly serial number allotted
by the Books Section of an accounting unit in respect of all the RJ Vs and CO7s received
from the various sections of the same accounting unit.
5. Date of accountal (Books date):- This is the date of accountal in the Books Section and the
boxes on the individual vouchers are filled in by the Books Section with a 6-digit date code.
For example, in the case of CO7s, MCRs and TCs, if the date of accountal of the voucher is
3
rd
March, 1986, the box is filled in with 030386 (if the accounting month is March 1986).
In the case of both types of J Vs (Capital and Revenue), the date of preparation has no
particular significance and, therefore, as a rule, the date will be that of the last date of the
month. For example, a J V of May 1986 will bear the date of 310586 (i.e. the last date of
the month).
6. Debit/Credit Indication (Dr/Cr):- This is a single digit code pre-printed on the voucher.
214
1 for Dr. and 2 for Cr.
7. Consignee Code:- This is a 5-digit code used on the stores indents etc. to identify the
official drawing the stores.
8. Spending department code (SPD):- This is a 2-digit code indicating the department
incurring the expenditure. The code list of the spending departments is given in Annexure
III.
9. Allocation (and PU) Code:- This indicates the allocation of the transactions and is a 8
character code comprising a 2-digit demand code followed by 4 character detailed head
code and suffixed by a 2-digit primary unit code. Since the detailed head for revenue
transactions as provided in the books of classification is of 3-digits, the 3-digit account code
is entered in continuation of 2-digit code for abstracts/demands leaving the unit position
blank.
(b) Service and Suspense Heads:- This is a 8-digit code. Full list of the service heads is given
in Annexure IV.
The instructions for conducting the audit of General Books and Accounts are
contained in Chapter XIX of Railway Audit Manual.
215

ANNEXURE I
CODE LIST OF ACCOUNTING UNITS
Description Account Unit Code
FA & CAO/SC .. 01
Sr.DFM/SC .. 05
Sr.DFM/HYB .. 06
Sr.DFM/BZA .. 07
Sr.DFM/GTL .. 09
Sr.DFM/GNT .. 10
Sr.DFM/NED .. 11
WAO/LGD .. 15
WAO/RYP .. 17
SAO/CRS/TPTY .. 18
SAO/CN/SC .. 21
SAO/CN/BZA .. 22
SAO/CN/RJ Y .. 24
SAO/CN/TPTY .. 26
Dy.CAO/CN/NED .. 27

..
216
ANNEXURE II
CODE LIST OF SECTIONS PREPARING CO7s AND J Vs

SECTIONS CODE
(XX)
Books 01
Establishment (Gaz.) 02
Establishment (Non-Gaz.) .... 03
Expenditure Accounts 04
Expenditure Catering A/cs 05
Stores Bills 06
Fuel Bills 07
Provident Fund 08
Pension 09
Settlement 10
Coaching 11
Goods 12
Claims 13
Traffic Books 14
Traffic Sundries 15
Outstandings 16
Suspense 17
Labour & Stores 18
S&T A/cs. MFT 19
Stores (Books) 20
Stores (A/c Current) 21
Stores (Purchases) 22
Commercial (Claims) 23
Traffic Accounts

..

217
ANNEXURE III
CODE LIST OF SPENDING DEPARTMENTS

DESCRIPTION CODE

General Management 01
Accounts 02
Personnel .... 03
Stores 04
Engineering (Open Line) 05
Mechanical 06
Electrical 07
S&T 08
Operating 09
Comml. & Catering 10
Claims 11
Security 12
Medical 13
Construction Accounts 14
Construction Engineering 15
Construction S&T 16
Construction Electrical 17
Construction Mechanical 18
Railway Electrification 20
ZTC/MLY 21
DSTE/CN/MW/SC 22
I R I S E T 30
Railway Recruitment Board 31
Audit 32
DCOS/LGD 41
DCOS/MFT 42
DCOS/GSD/UBL 43
DCOS/MSD/UBL 44
DCOS/S&F/SC 45
ACOS/RYP 46
218
ACOS/GY 47
ACOS/CTJ 48
ACOS/Stores/BZA 49
ACOS/DSL/KZJ 50
Press Supdt./Printing Press/SC 51
Electrical/TRS 52
Electrical/TPD 53
Mech./DSL/HYB 54
Mech./DSL/SC 55
DSTE/MW/SC 56
DME/DSL/KZJ 57
ACOS/ELS/BZA 58
CHS/LGD 59
RCT/SC 60
CCM/PRS 65
ACOS/DST/BZA 67
ELS/LGD 68
CEE/CN/DHE 69
Catering 70
M.W (Special Works) 71
C&W/BZA 72
Diesel Stores Depot/UBL 73
Diesel Loco Shed/UBL 74
ELS/KZJ 75
STTC/MLY 76
C-TARA 77
219
ANNEXURE IV
CODING LIST OF SUSPENSE AND SERVICE HEADS
PART I CONSOLIDATED FUND
SUSPENSE
Sl. No. NAME OF THE HEAD CODE
1002-Indian Railways Commercial Lines
Revenue Receipts
01 Traffic Accounts 00100201
02 Foreign Railways 00100202
03 Traffic Account (Cash in Transit) Credit only 00100203
04 Demands Recoverable 00100204

TRAFFIC SUSPENSE
05 Stores 00100206
06 Fuel 00100207
07 Expenditure 00100208
08 Coaching 00100211
09 Goods 00100212
10 Traffic Books 00100213
11 Compensation Claims 00100214
12 Sundries 00100215
13 WOC 00100225

1001-Indian Railways Commercial Lines Miscellaneous
Receipts

14 Interest on PF Bonus not due to members 00100101
15 Leave Salary Contribution 00100102
16 Forfeited Bonus 00100103
17 Interest on erroneous PF Recovery 00100104
18 Amount of Bonus forfeited from Bonus optees 00100105
19 Gain on conversion due to decimal coinage 00100106
20 Amount recovered on account of liquidated damages 00100107
21 Rounding off paise on account of bulk orders 00100108
22 Petty unclaimed balances 00100109
23 Penalty recovered from Contractors 00100110
24 Interest on capital during Construction 00100111
25 Dividend from Consumer Co-Operative Societies 00100112
26 Miscellaneous 00100113
27 Government share of surplus profits from subsidized
companies
00100114
28 Sale of Land Subsidised Companies 00100115
29 Subsidies from General Revenues towards Dividend reliefs
and other concessions
00100116
30 RRB (Cost of forms & exam fees) 00100117
31 RCT (Miscellaneous expenditure) 00100118
32 Surcharge collected on Passenger Tickets towards SRSF 00100120
33 National Aids Control 00221002
34 Compensation (Family Welfare Programme) 00221101
6425 LOANS AND ADVANCES
220
35 Loans to Railway Mens Consumer Co-Operative Societies 00642501
7610 Loans to Government Servants
36 House Building Advance (Rlys) 00761001
37 House Building Advance (Audit) 00761051
38 Motor Car Advance (Rlys) 00761002
39 Motor Car Advance (Audit) 00761052
40 Scooter / Motor Cycle Advance (Rlys) 00761003
41 Scooter / Motor Cycle Advance (Audit) 00761053
42 Advance for purchase of other conveyances (Rlys) 00761004
43 Advance for purchase pf other conveyances (Audit) 00761054
44 Personal Computer (Rlys) 00761005
45 Personal Computer (Audit) 00761055
46 Drought Advance (Rlys) 00761006
47 Drought Advance (Audit) 00761056
48 Flood Advance (Rlys) 00761007
49 Flood Advance (Audit) 00761057
50 Earthquake Advance (Rlys) 00761008
51 Earthquake Advance (Audit) 00761058
52 Fan Advance (Rlys) 00761009
53 Fan Advance (Audit) 00761059
54 Foodgrain Advance (Rlys) 00761010
55 Foodgrain Advance (Audit) 00761051
56 Cyclone Advance (Rlys) 00761011
57 Cyclone Advance (Audit) 00761061
58 Other Misc. Advances (Rlys) 00761012
59 Other Misc. Advances (Audit) 00761062
7615 Miscellaneous Loans & Advances:
60 Miscellaneous Loans 00761501

Part III PUBLIC ACCOUNT SMALL SAVINGS

8005 STATE PROVIDENT FUNDS
61 General Provident Fund 00800501
62 General Provident Fund (DA) 00800502
63 Non-Contributory SRPF 00800503
64 Non-Contributory (DA) 00800504
65 Transferred ex. N.S.P.F. 00800505
66 Non-Contributory N.S.P.F. 00800506
67 GFP ADA Arrears 00800508
68 CSRPF ADA Arrears 00800511
69 ACSRP ADA Arrears 00800512
70 GPF-HRA & CCA Arrears 00800513
71 CSRPF HRA & CCA Arrears 00800514
72 NCSRPF-HRA & CCA Arrears 00800515
RESERVE FUNDS
8115 Depreciation / Renewal Reserve Funds (Rlys.)
73 Transfers to and from Revenue Account (DRF) 00811501
74 Transfers from surplus (CR. To Fund) (DRF) 00811502
75 Interest on fund Balances (Cr. To Fund) (DRF) 00811503
8116 OLWR
76 Transfers to and from Revenue Accounts (OLWR) 00811601
221
77 Transfers from Surplus (OLWR) 00811602
78 Interest on Fund Balance (OLWR) 00811603
8117 DF
79 Transfers to & from Revenue Accounts (DF) 00811701
80 Transfers from Surplus (DF) 00811702
81 Interest on Fund Balance (DF) 00811703
8118 Capital Fund
82 Transfers to & from Revenue Accounts (CF) 00811801
83 Transfers from Surplus (CF) 00811802
84 Interest on Fund Balance (CF) 00811803
8119 SAFETY FUND
85 Transfers to & from Revenue Accounts (SF) 00811901
86 Transfers from Surplus (SF) 00811902
87 Interest on Fund Balance (SF) 00811903
8121 Railway Pension Fund
88 Transfers to and from Revenue (Pension Fund) 00812101
89 Transfers from CSRPF (Cr. To Fund) (Pension Fund) 00812102
90 Interest on Fund Balances (Cr. To Fund) (Pension Fund) 00812103
91 I.R.I.S.E.T. (Pension Fund) 00812104
92 Audit (Pension Fund) 00812105
8132 SBF Railways Staff Benefits (Rlys)
93 Investment Account (Rlys) 00813201
94 Investment Account (IRISET) 00813202
95 Transfer from unpaid wages to SBF 00813203
8230 SRSF
96 Transfers to & from Revenue Accounts (SRSF) 00823001
97 Transfers from Surplus (SRSF) 00823002
98 Interest on Fund Balance (SRSF) 00823003

99 Employee Contribution TIER 1 00834201
100 Government Contribution TIER 1 00834202
101 Interest on TIER 1 00834203
1. DEPOSITS AND ADVANCES
102 Deposits of Govt. Companies / IRFC 00834201
8445 Indian Railways Deposits : Not Bearing Interest
103 Deposit Books (Misc.) 00844501
104 Deposit Books (Establishment) 00844502
105 Deposit Books (Expenditure) 00844504
106 Deposit Books(Catering) 00844505
107 Deposit Books(Stores) 00844506
108 Deposit Books(Coal) 00844507
109 Deposit Books(PF) 00844508
110 Deposit Pension 00844509
111 Deposit Coaching 00844511
112 Deposit Goods 00844512
113 Deposit Claims 00844513
114 Deposit T. Book 00844514
115 Deposit made for Temporary Electric connections etc.
provided by Railways (Deposits)
00844515
116 Deposit made by outsiders for the treatment etc. provided in
the Railway Hospitals (Deposit Medical)
00844516
222
117 Security Deposits / Retention Money received from
Contractors (Deposit SD & BM)
00844517
118 Deposit received from Vendors Tea stall, Book Stalls, Cycle
Stand Contractors, Deposit for lease of Land etc. (Deposit
Sundries)
00844518
119 Court Attachment of Railway Employees Pay and
Allowances Deposit Court
00844519
120 Deposit Books (Unpaid Wages) 00844521
121 Deposit (Earnest Money) 00844522
122 Deposit S.B.F. 00844523
123 Deposit Private Companies 00844524
124 Deposit A.D.A. 00844525
125 Deposit Books of Branch Line Companies 00844526
126 Deposit Stores (EMDESD) 00844531
127 Deposit Stores (Sales Tax) 00844532
128 Deposit Stores (Misc.) 00844533
129 Deposit Survey 00844534
130 Deposit Inspection Fee 00844535
131 Miscellaneous P.F. Deposits 00844550
132 Unclaimed P.F. Deposits 00844551
133 Trust Interest Accounts 00844552
134 Other Deposits 00844553
135 Deposit Works 00844554
136 Deposits IRFC 00844555
137 Prime Minister Relief Fund 00844556
138 SRSF 00844557
139 Employees Contribution 00844558
140 Government Contribution 00844559
141 Interest on TIER 00844560
142 SEIGNIORAGE CHARGES 00844561
143 Advances of Pay on Transfer 00855201
144 Catering Advance 00855202
145 Messing Advance 00855203
146 Other Departmental Advances 00855204
L SUSPENSE & MISCELLANEOUS
B SUSPENSE
8660 Suspense Accounts (Railway)
147 Transactions on behalf of RBI/Nagpur Cost of Railway
freight for remittance of Treasure
00866001
148 Transactions on behalf of RBI/Nagpur (Additional DA
Deposit (Old))
00866002
149 Transactions on behalf of RBI/Nagpur (Additional DA
Deposit (New))
00866003
150 Adjustment with Pakistan 00866004
151 Adjustment with Bangladesh 00866005
152 Railway Insurance Scheme 00223501
153 Court Deposits 00866007
154 PSB Clearance from Suspense (Cheq. & Bills) 00866008
155 PSB RIB Clearance 00866009
156 PSB Cheques & Bills 00866010
157 Group Insurance A 00801101
223
158 Group Insurance B 00801102
159 Group Insurance C 00801103
160 Group Insurance D 00801104
161 Group A Savings 00801105
162 Group B Savings 00801106
163 Group C Savings 00801107
164 Group D Savings 00801108
165 UT.G.I./A 00801111
166 UT.G.I./B 00801112
167 UT.G.I./C 00801113
168 UT.G.I./D 00801114
169 Group A 00801121
170 Group B 00801122
171 Group C 00801123
172 Group D 00801124
173 Additional DA Deposit (Old) 00866011
174 Additional DA Deposit (New) 00866012
175 Additional Wages Deposit (Old) 00866013
176 Additional Wages Deposit (New) 00866014
177 PAO Suspense 00866015
178 PAO/NDLS Int, on ADA (Old) 00866016
179 PAO/NDLS Int, on ADA (New) 00866017
180 KRCL 00866018
181 PSB-RIB 00866019
182 Loss or Gain due to rounding off 00866006
183 Cheques and Bills (Cheques encashed) 00867087
184 Cheques and Bills 00867089
185 Reasuries 00867785
186 RIB Clearance 00867786
187 Remittance into Banks 00867788
Reserve Bank Suspense
188 AG/NDLS 00866020
189 AG/Andhra Pradesh 00866021
190 AG/Assam 00866022
191 AG/Bihar 00866023
192 AG/Maharashtra / Mumbai 00866024
193 AG/Central Revenue 00866025
194 AG/Goa 00866026
195 AG/Gujarat 00866027
196 AG/Haryana 00866028
197 AG/Karnataka 00866029
198 AG/Madhya Pradesh 00866030
199 AG/Maharashtra / Nagpur 00866031
200 AG/Orissa 00866032
201 AG/Punjab 00866033
202 AG/Rajasthan 00866034
203 AG/Tamil Nadu 00866035
204 AG/Uttar Pradesh 00866036
205 AG/West Bengal 00866037
206 AG/Kerala 00866038
207 AG/J ammu & Kashmir 00866039
224
208 AG/Nagaland 00866040
209 Ag/Himachal Pradesh / Simla 00866041
210 AG/Manipur / Imphal 00866042
211 AG/Tripura / Agartala 00866043
212 AG/Goods 00866044
213 AG/Coaching 00866045
214 Dy.A.A./P&T / Bangalore 00866046
215 Dy.A.A./P&T / Bhopal 00866047
216 Dy.A.A./P&T / Mumbai 00866048
217 Dy.A.A./P&T / Calcutta 00866049
218 Dy.A.A./P&T / Cuttack 00866050
219 Dy.A.A./P&T / Delhi 00866051
220 Dy.A.A./P&T / Hyderabad 00866052
221 Dy.A.A./P&T / J aipur 00866053
222 Dy.A.A./P&T / Kapurthala 00866054
223 Dy.A.A./P&T / Madras 00866055
224 Dy.A.A./P&T / Nagpur 00866056
225 Dy.A.A./P&T / Trivandrum 00866057
226 D.A.G./P&T / Goods 00866058
227 D.A.G./P&T / Patna 00866059
228 D.A.G./P&T / Calcutta 00866060
229 Director, P&T Accounts 00866061
230 PAO Suspense Coaching 00866062
231 PAO Suspense Goods 00866063
232 PAO Suspense Others 00866064
233 C.D.A. / Bangalore 00866065
234 C.D.A.(N) / Mumbai 00866066
235 C.D.A.(F) / Calcutta 00866067
236 C.D.A.(AF) / Dehra Dun 00866068
237 C.D.A.(DRS) / Madras 00866069
238 C.D.A.(CS) / Meerut 00866070
239 C.D.A. / Patna 00866071
240 C.D.A.(O) / Poona 00866072
241 C.D.A.(SC) / Poona 00866073
242 C.D.A.(WC) / Meerut 00866074
243 C.D.A.(ORS) / North Meerut 00866075
244 C.D.A.(AF) / Kirkee 00866076
245 AG Suspense Coaching 00866077
246 Ag Suspense Goods 00866078
247 AG Suspense Others 00866079
248 P.A.O. / NDLS 00866080
249 P.A.O. / Ministry of EA 00866081
250 Public Sector Banks (Pension Reimbursement) 00866082
251 P.A.O. / Pension 00866083
252 P.A.O. / Loksabha 00866084
253 P.A.O. / Rajyasabha 00866085
254 P.A.O. / N.S.Dam 00866086
255 P.A.O. / Pochanpad 00866087
256 P.A.O. / Secunderabad 00866088
257 P.A.O./Supplies / Bombay 00866090
258 P.A.O. / Hyderabad 00866091
225
259 P.A.O. / Visakhapatnam 00866092
260 P.A.O. / Kaukantla 00866093
261 P.A.O. / Goods 00866094
262 P.A.O. / Coaching 00866095
263 P.A.O./Supplies / NDLS 00866096
264 P.A.O. / Madras 00866097
265 P.A.O. / Calcutta 00866098
C- Other Accounts
8675 Deposits with Reserve Bank (Rlys)
266 Transactions with Reserve Bank including State Banks 00867501
267 Transactions with States 00867502
268 Transactions with P&T 00867503
269 Transactions with Defence & Naval 00867504
270 Transactions with PAOs 00867505
271 Additional D.A. 00867506
272 Additional Wages 00867507
8679 Accounting with Governments of Foreign
Countries

273 Pakistan (Rlys) 00867901
274 Pakistan (Civil) 00867902
275 Burma (Rlys) 00867903
276 Bangladesh (Rlys) 00867904
M - Remittances
T-8782 Cash Remittances and Adjustment between
Officers rendering Accounts to same A.G. / Accounts
Officers Transfers within the same Railways

277 T.Divisional FA & CAO (Central Books) 00878201
278 T.Divisional Sr.DAO/SC 00878205
279 T.Divisional Sr.DAO/HYB 00878206
280 T.Divisional Sr.DAO/BZA 00878207
281 T.Divisional Sr.DAO/UBL 00878208
282 T.Divisional Sr.DAO/GTL 00878209
283 T.Divisional WAO/LGD 00878215
284 T.Divisional WAO/UBL 00878216
285 T.Divisional WAO/RYP 00878217
286 T.Divisional SAO/CRS/TPTY 00878218
287 T.Divisional Const./SC 00878221
288 T.Divisional Const./BZA 00878222
289 T.Divisional Const./RJ Y 00878224
290 T.DivisionalConst./TPTY 00878226
291 T.Divisional FA&CAO/RE/BZA Non-extant
292 T.Divisional RE/PU Non-extant
293 Transfer Railways Revenue (in J Vs only) 00878243
294 Transfer Railways Capital (in J Vs only) 00878244
295 T.Divisional FA&CAO House Rent 00878251
296 T.Divisional FA&CAO Lawn Charges 00878252
297 T.Divisional FA&CAO Diet Charges 00878253
298 T.Divisional FA&CAO (Stores) 00878254
299 T.Divisional Sr.DAO/SC Elec. Energy 00878255
300 T.Divisional Sr.DAO/HYB Elec. Energy 00878256
301 T.Divisional Traffic Accounts 00878257
226
(b) Inter Governmental Adjusting Accounts:

8788 Adjusting Accounts with P&T

302 Dy.A.A./P&T / Bangalore 00878846
303 Dy.A.A./P&T / Bhopal 00878847
304 Dy.A.A./P&T / Mumbai 00878848
305 Dy.A.A./P&T / Calcutta 00878849
306 Dy.A.A./P&T / Cuttack 00878850
307 Dy.A.A./P&T / Delhi 00878850
308 Dy.A.A./P&T / Hyderabad 00878850
309 Dy.A.A./P&T / J aipur 00878850
310 Dy.A.A./P&T / Kapurthala 00878850
311 Dy.A.A./P&T / Madras 00878850
312 Dy.A.A./P&T / Nagpur 00878850
313 Dy.A.A./P&T / Trivandrum 00878850
314 D.A.G./P&T / Goods 00878850
315 D.A.G. / P&T / Patna 00878850
316 D.A.G./P&T / Calcutta 00878850
317 Director, P&T Accounts Lucknow 00878
8789 Adjusting Accounts with Defence

318 C.D.A. / Bangalore 00866065
319 C.D.A.(N) / Mumbai 00878966
320 C.D.A.(F) / Calcutta 00878967
321 C.D.A.(AF) / Dehra Dun 00878968
322 C.D.A.(DRS) / Madras 00878969
323 C.D.A.(CC) / Meerut 00878970
324 C.D.A.(CC) / Patna 00878971
325 C.D.A.(O) / Poona 00878972
326 C.D.A.(SC) / Poona 00878973
327 C.D.A.(WC) / Meerut 00878974
328 C.D.A.(ORS) / North Meerut 00878975
329 C.D.A.(AF) / Kirkee 00878976
330 C.D.A.(A/c with Defence CDA) / Guwahati 00878977
331 C.D.A. / SC 00878978
(a) Exchange Accounts 00878
8797 Accounts between Railways
332 Central Railway 00879701
333 Eastern Railway 00879702
334 Northern Railway 00879703
335 North Eastern Railway 00879704
336 North Eastern Frontier Railway 00879705
337 Southern Railway 00879706
338 South Eastern Railway 00879707
339 Western Railway 00879708
340 South Central Railway 00879709
341 CLW 00879711
342 DLW 00879712
343 ICF 00879713
344 Wheel and Axle Plant 00879714
345 M.T.P. Bombay 00879721
346 M.T.P. Calcutta 00879722
347 M.T.P. Delhi 00879723
227
348 M.T.P. Madras 00879724
349 Integral Coach Factory, Kapurthala 00879725
350 COF Operating Information Systems Railway 00879726
351 East Central Railway 00879730
352 East Coast Railway 00879731
353 North Central Railway 00879732
354 North Western Railway 00879733
355 South East Central Railway 00879734
356 South Western Railway 00879735
357 West Central Railway 00879736
358 Railway Board 00879751
359 FA&CAO/RE / Allahabad 00879752
360 RDSO / Lucknow 00879753
361 Dy.CAO/COMN / NDLS 00879754
362 COFMOW / NDLS 00879766
363 DCM / Patiala 00879767
364 Interest on House Building Advance 00004901
365 Interest on Motor Car Advance 00004902
366 Interest on Scooter / Motor Cycle Advance 00004903
367 Interest on Cycle Advance 00004904
368 Interest on Fan Advance 00004905
369 Interest on Foodgrain Advance & Flood Advance
Not interest bearing
Advances
370 Interest on PC Advance 00004908
371 Dividend Payable to General Revenues 00005002
372 Railway Board Income Tax Expenditure 00002101
373 Railway Board Establishment 00002102
374 Railway Surcharge on IT Employees 00002103
375 Railway Surcharge on Contractors 00002104
376 Education Cess on IT (Expenditure) 00002105
377 Education Cess on IT (Establishment) Employees 00002106
8671 Departmental Balances (Rlys)
378 Cheques and Credit Notes-cum-Cheques deposited with the
banks and awaiting clearance
00000001
379 Cheques and Credit Notes-cum-Cheques on hand 00000002
380 Cash on hand with Cashier 00000004
381 Miscellaneous Items 00000007
382 Cash in Transit (only debits) 00100203
383 Credit or Recovery 00000559
384 Payment to Worked Lines 00000701
385 Subsidy and rebate 00000702
386 Advance cheques 00867102
8672 Permanent Cash Imprest
387 Imprest 00867202
228
ANNEXURE - IV
CODING LIST OF SUSPENSE AND SERVICE HEADS
Part I - Consolidated Fund Code
xx xxxxxx
1002 - Indian Railways Commercial lines
Revenue Receipts

SUSPENSE:

Traffic Account 00014601
Foreign Railways 00014602
Traffic A/c (Cash in Transit) Credit only 00014603
Demands Recoverable 00014604

Traffic Suspense

Stores 00014606
Fuel 00014607
Expenditure 00014608
Coaching 00014611
Goods 00014612
Traffic Books 00014613
Compensation Claims 00014614
Sundries 00014615
WOC 00014625

1001 - Indian Railways Commercial Lines - Miscellaneous Receipts:

Interest on P.F. Bonus not due to members: 00014501
Leave Salary contribution 00014502
Forfeited Bonus 00014503
Interest on erroneous P.F. Recovery 00014504
Amount of Bonus forfeited from pension Optees 00014505
Gain on conversion due to decimal coinage 00014506
Amount recovered on account of liquidated damages 00014507
Rounding off paise on account of bulk orders 00014508
Petty unclaimed balances 00014509
Penalty recovered from contractors 00014510
Interest on capital during construction 00014511
Dividend from Consumer Cooperative Societies 00014512
Miscellaneous 00014513
Govt. share of surplus profits from subsidised companies 00014514
Sale of Land - Subsidised Companies 00014515
Subsidies from General Revenues towards Dividend Reliefs
and other concessions 00014516
RRB(Cost of Forms & Exam. Fees) 00014517
RCT(Misc. expenditure) 00014518
Surcharge collected on Passenger tickets towards ACF 00014521
Compensation(Family Welfare Programme) 00021101

6425 - LOANS AND ADVANCES:
229

Loans to Railway Men's Consumer Co-operative Societies 00069801

7610 - Loans to Government servants:

House Building Advance (Rlys.) 00076601
House Building Advance(Audit) 00076651
Motor Car Advance(Rlys.) 00076602
Motor Car Advance(Audit) 00076652
Scooter/Motor Cycle Advances(Rlys.) 00076603
Scooter/Motor Cycle Advances(Audit) 00076653
Advance for purchase of other conveyances(Rlys.) 00076604
Advance for purchase of other conveyances(Audit) 00076654
Personal Computer(Rlys.) 00076655
Personal Computer(Audit) 00076656
Drought Advance(Rlys.) 00076606
Drought Advance(Audit) 00076656
Flood Advance(Rlys.) 00076607
Flood Advance(Audit) 00076657
Earthquake Advance(Rlys.) 00076608
Earthquake Advance(Audit) 00076658
Fan Advance(Rlys.) 00076609
Fan Advance(Audit) 00076659
Foodgrain Advance(Rlys.) 00076610
Foodgrain Advance(Audit) 00076660
Cyclone Advance(Rlys.) 00076611
Cyclone Advance(Audit) 00076661
Other Misc. Advances(Rlys.) 00076612
Other Misc. Advances(Audit) 00076662

7615 - Miscellaneous Loans & Advances:

Miscellaneous Loans 00076701

Part - III - PUBLIC ACCOUNT - SMALL SAVINGS - PROVIDENT

8005 - STATE PROVIDENT FUNDS:

General Provident Fund 00080501
------do----- (DA) 00080502
Contributory SRPF 00080503
------do----- (DA) 00080504
Non-contributory SRPF 00080505
------do----- (DA) 00080506
Transferred Rly. Personnel PF(Cont.) 00080507
do------ (Non Cont.) 00080508
Contributory ex. N.S.P.F. 00080511
Non-contributory -do- 00080512
CPF - ADA Arrears 00080513
CSRPF - ADA Arrears 00080514
ACSRPF - ADA Arrears 00080515
CPF - HRA & CCA Arrears 00080516
230
CSRPF - HRA & CCA Arrears 00080517
ACSRPF - HRA & CCA Arrears 00080518

RESERVE FUNDS:
8115 - Depreciation/Renewal Reserve Funds (Rlys.)

Transfers to and from Revenue Account(DRF) 00081501
Transfers from Surplus(Cr. To Fund) (DRF) 00081502
Interest on Fund Balances(Cr. To Fund) (DRF) 00081503

8121 - Railway Pension Fund:

Transfers to and from Revenue(Pension Fund) 00082101
Transfers from CSRPF(CR. To Fund) (Pension Fund) 00082102
Interest on Fund Balances(Cr. To Fund) (Pension Fund) 00082103

I.R.I.S.E.T.(Pension Fund) 00082104
Audit(Pension Fund) 00082105

8121 - SBF Railways - Staff Benefits(Rlys.)

Investment Account (Rlys.) 00083201
Investment Account(IRISET) 00083202

1. DEPOSITS AND ADVANCES:

Deposits of Govt. companies/IRFC 00084201

8445 - Indian Railways Deposits: Not Bearing Interest

Deposit Books(Misc.) 00084501
Deposit Books (Establishment) 00084502
Deposit Books (Expenditure) 00084504
Deposit Books (Catering) 00084505
Deposit Books (Stores) 00084506
Deposit Books (Coal) 00084507
Deposit Books (PF) 00084508
Deposit Pension 00084509
Deposit Coaching 00084511
Deposit Goods 00084512
Deposit Claims 00084513
Deposit T.Book 00084514

Deposits made for Temporary Electric connections
etc. provided by Railways(Deposit) 00084515

Deposits made by outsiders for the treatment etc.
provided in the Rly. Hospitals(Deposit Medical) 00084516

Security Deposit/Retention money received from
contractors (Deposit SD & BM) 00084517

231
Deposits received from Vendors Tea Stall, Book
Stalls, Cycle Stand contractors, deposit for lease
of land etc.(Deposit Sundries) 00084518

Court Attachments of Railway Employees
Pay and Allowances(Deposit Court) 00084519

Deposit Books (Unpaid wages) 00084521
Deposit (Earnest Money) 00084522
Deposit S.B.F. 00084523
Deposit Private Companies 00084524
Deposit A.D.A.) 00084525
Deposit Books of Branch Line Companies 00084526
Miscellaneous P.F. Deposits 00084550
Unclaimed P.F. Deposits 00084551
Trust Interest Account 00084552
Other Deposits 00084553
Deposits Works 00084554
Deposits IRSC 00084555

C - ADVANCES:

852 - Railway Advances:

Departmental Advances:

Advances of Pay on transfer 00085201
Catering Advance 00085202
Messing Advance 00085203
Other Departmental Advances 00085204

L - SUSPENSE & MISCELLANEOUS:

B - SUSPENSE:

8660 - Suspense Accounts (Railway):

Transactions on behalf of RBI/Nagpur Cost of Railway
freight for remittance of treasure 00085801

Transactions on behalf of RBI/Nagpur(Additional
DA Deposit(Old)) 00085802

Transactions on behalf of RBI/Nagpur(Additional
DA Deposit(New)) 00085803

Railway Insurance Scheme 00085804
Court Deposits 00085805
Group Insurance A 00085806
Group Insurance B 00085807
Group Insurance C 00085808
Group Insurance D 00085809
232
Additional DA Deposit (old) 00085811
Additional DA Deposit (New) 00085812
Addl. Wages Deposit (Old) 00085813
Addl. Wages Deposit (New) 00085814
PAO Suspense 00085815
PAO NDLS Int. on ADA(old) 00085816
PAO NDLS Int. on ADA(New) 00085817
Loss or gain due to rounding off 00085818
Cheques and Bills 00085889
Remittance into Banks 00085888

Reserve Bank Suspense:

AC/NDLS 00085820
AC/Andhra Pradesh 00085821
AC/Assam 00085822
AC/Bihar 00085823
AC/Maharashtra/Bombay 00085824
AC/Central Revenues 00085825
AC/Goa 00085826
AC/Gujarat 00085827
AC/Haryana 00085828
AC/Karnataka 00085829
AC/Madhya Pradesh 00085830
AC/Maharashtra/Nagpur 00085831
AC/Orissa 00085832
AC/Punjab 00085833
AC/Rajasthan 00085834
AC/Tamil Nadu 00085835
AC/Uttar Pradesh 00085836
AC/West Bengal 00085837
AC/Kerala 00085838
AC/J ammu & Kashmir 00085839
AC/Nagaland 00085840
AC/Himachal Pradesh/Simla 00085841
AC/Manipur/Imphal 00085842
AC/Tripura/Agartala 00085843
AC/Goods 00085844
AC/Coaching 00085845

Dy.A.A./P&T/Bangalore 00085846
Dy.A.A./P&T/Bhopal 00085847
Dy.A.A./P&T/ Bombay 00085848
Dy.A.A./P&T/ Calcutta 00085849
Dy.A.A./P&T/ Cuttack 00085850
Dy.A.A./P&T/ Delhi 00085851
Dy.A.A./P&T/ Hyderabad 00085852
Dy.A.A./P&T/ J aipur 00085853
Dy.A.A./P&T/ Kapurthala 00085854
Dy.A.A./P&T/ Madras 00085855
Dy.A.A./P&T/ Nagpur 00085856
Dy.A.A./P&T/ Trivandrum 00085857
233

D.A.G./P&T/Goods 00085858
D.A.G./P&T/Patna 00085859
D.A.G./P&T/Calcutta 00085860

Director Accounts, P&T Lucknow 00085861

C.D.A./Bangalore 00085865
C.D.A.(N)/Bombay 00085866
C.D.A.(F)/Calcutta 00085867
C.D.A.(AF)/Dehra Dun 00085868
C.D.A.(CRS)/Madras 00085869
C.D.A.(CS)/Meerut 00085870
C.D.A./Patna 00085871
C.D.A./(O)/Poona 00085872
C.D.A.(SC)/Poona 00085873
C.D.A.(WC)Meerut 00085874
C.D.A./ORS/North/Meerut 00085875
C.D.A./AF/Kirkee 00085876
P.A.O./NDLS 00085880
P.A.O./Ministry of EA 00085881
Public Sector Banks(Pension Reimbursement 00085882
P.A.O./Pension 00085883
P.A.O./Loksabha 00085884
P.A.O./Rajyasabha 00085885
P.A.O./N.S.Dam 00085886
P.A.O./Pochampad 00085887
P.A.O./Supplies/Bombay 00085890
P.A.O./Hyderabad 00085891
P.A.O./Visakhapatnam 00085892
P.A.O./Kaukuntla 00085893
P.A.O./Goods 00085894
P.A.O./Coaching 00085895
P.A.O./Supplies/NDLS 00085896
P.A.O./Madras 00085897
P.A.O./Calcutta 00085898

C - Other Accounts:

8675 - Deposits with Reserve Bank(Rlys.):

Transaction with Reserve Bank including State Banks 00087501
Transactions with States 00087502
Transactions with P&T 00087503
Transactions with Defence & Naval 00087504
Transactions with PAOs 00087505
Addl. D.A. 00087506
Addl. Wages 00087507

8679 - Accounting with Governments of Foreign Countries:

234
Pakistan(Rlys.) 00087901
Pakistan(Civil) 00087902
Burma(Rlys.) 00087903
Bangladesh(Rlys.) 00087904

M - Remittances:

T - 8782 - Cash Remittances & Adjustments Between Officers rendering Accounts to same
A.G./Accounts Offices - Transfer within the same Railways:

T.Divisional FA&CAO(Central Books 00088201
T.Divl.Sr.DAO/SC 00088205
T.Divl.Sr.DAO/RYP 00088206
T.Divl.Sr.DAO/BZA 00088207
T.Divl.Sr.DAO/UBL 00088208
T.Divl.Sr.DAO/GTL 00088209
T.Divl.WAO/LGD 00088215
T.Divl.WAO/UBL 00088216
T.Divl.WAO/RYP 00088217
T.Divl.SAO/CRS/TPTY 00088218
T.Divl.Constn/SC 00088221
T.Divl.Constn/BZA 00088222
T.Divl.Constn/UBL 00088223
T.Divl.Constn/RJ Y 00088224
T.Divl.FA&CAO/RE/BZA 00088231
T.Divl.RE/PU 00088232
Transfer Railways Revenue(In J Vs on W) 00088243
Transfer Railways Capital(In J Vs on W) 00088244
T.Divl. FA&CAO House Rent 00088251
T.Divl. FA&CAO Lawn Charges 00088252
T.Divl. FA&CAO Diet Charges 00088253
T.Divl. FA&CAO (Stores) 00088254
T.Divl. Sr.DAO/SC Elec. Energy 00088255
T.Divl. Sr.DAO/HYB Elec. Energy 00088256

(b) Inter-Governmental Adjusting Accounts:
8788 - Adjusting Accounts with P&T:

Dy.AA/P&T/Bangalore 00088746
Dy.AA/P&T/Bhopal 00088747
Dy.AA/P&T/Bombay 00088748
Dy.AA/P&T/Calcutta 00088749
Dy.AA/P&T/Cuttack 00088750
Dy.AA/P&T/Delhi 00088751
Dy.AA/P&T/Hyderabad 00088752
Dy.AA/P&T/J aipur 00088753
Dy.AA/P&T/Kapurthala 00088754
Dy.AA/P&T/Madras 00088755
Dy.AA/P&T/Nagpur 00088756
Dy.AA/P&T/Trivandrum 00088757
Dy.AA/P&T/Goods 00088758
DAG/P&T/Patna 00088759
235
DAG/P&T/Calcutta 00088760
Director(Accounts)(P&T) Lucknow 00088761

8789 - Adjusting Accounts with Defence:

CDA/Bangalore 00088965
CDA(N)/Bombay 00088966
CDA(F)/Calcutta 00088967
CDA(AF)/Dehra Dun 00088968
CDA(ORS)/Madras 00088969
CDA(CC)/Meerut 00088970
CDA(CC)/Patna 00088971
CDA(C)/Poona 00088972
CDA(SC)/Poona 00088973
CDA(WC)/Meerut 00088974
CDA(CRS)North/Meerut 00088975
CDA(AF)/Kirkes 00088976

8790 - Adjusting Accounts with States:

AG/NDLS 00089020
AG/Andhra Pradesh 00089021
AG/Assam 00089022
AG/Bihar 00089023
AG/Maharashtra/Bombay 00089024
AG/Central Revenues 00089025
AG/Goa 00089026
AG/Gujarat 00089027
AG/Haryana 00089028
AG/Karnataka 00089029
AG/Madhya Pradesh 00089030
AG/Maharashtra/Nagpur 00089031
AG/Orissa 00089032
AG/Punjab 00089033
AG/Rajasthan 00089034
AG/Tamil Nadu 00089035
AG/Uttar Pradesh 00089036
AG/West Bengal 00089037
AG/Kerala 00089038
AG/J ammu & Kashmir 00089039
AG/Nagaland 00089040
AG/Himachal Pradesh/Simla 00089041
AG/Manipur(Imphal) 00089042
AG/Tripura(Agartala) 00089043
AG/Goods 00089044
AG/Coaching 00089045
PAO/NDLS 00089080
PAO/Ministry of EA 00089081
Public Sector Banks(Pension reimbursement) 00089082
PAO/Pension 00089083
PAO/Loksabha 00089084
PAO/Rajyasabha 00089085
236
PAO/Supplies/N.S.Project 00089086
PAO/Pochampad 00089087
PAO/Bombay 00089090
PAO/Hyderabad 00089091
PAO/Visakhapatnam 00089092
PAO/Kaukuntla 00089093
PAO/Goods 00089094
PAO/Coaching 00089095
PAO/NDLS 00089096
PAO/Madras 00089097
PAO/Calcutta 00089098

(c) Exchange Accounts:

8797 - Accounts between Railways:

Central Railway 00089701
Eastern Railway 00089702
Northern Railway 00089703
North Eastern Railway 00089704
North Eastern Frontier Railway 00089705
Southern Railway 00089706
South Eastern Railway 00089707
Western Railway 00089708
South Central Railway 00089709
C.L.W. 00089711
C.L.W. 00089712
I.C.F. 00089713
Wheel & Axle Plant 00089714
M.T.P. Bombay 00089721
M.T.P. Calcutta 00089722
M.T.P. Delhi 00089723
M.T.P. Madras 00089724
Railway Board 00089751
FA&CAO/RE/Allahabad 00089752
RDSO/Lucknow 00089753
Dy.CAO/COMN/New Delhi 00089754
Interest on J BA 00089755
Interest on FCA(Motor Car Advance) 00089756
Interest on Scooter Advance 00089757
Interest on Cycle Advance 00089758
Interest on Fan Advance 00089759
Interest on Grain Advance 00089760
Interest on Flood Advance 00089761
Rly. Board Income Tax Expenditure 00089762
Rly. Board Establishment 00089763
Rly. Surcharge on IT employees 00089764
Rly. Surcharge on Contractors 00089765

8671 - Departmental Balances(Rly.):

237
Cheques and Credit Notes-cum-cheques deposited
with the banks and awaiting clearance 00000001

Cheques & Credit Notes-cum-cheques on hand 00000002

Cash on hand with Chief Cashier 00000004

Miscellaneous Items 00000007

Cash in transit(only debits) 00014603

Advance cheques 00087102

8672 - Permanent Cash Imprest:

Imprest 00087202

238
803. Sanctions: All sanctions having financial effect relating to the Railway, accorded by the
President or Railway Board and those accorded by the General Manager and subordinate
officers should be audited by this section with reference to the Schedule of Powers and the
canons of financial propriety. The general principles of audit of sanctions and the method of
audit as prescribed in the Chapter on "Expenditure Audit" apply to sanctions relating to
Books and Budget also. The sanctions dealt with in the Books and Budget Section, generally
relate to distribution of funds as approved and advised by the Railway Board, to the various
units and reappropriations made. While auditing sanctions relating to distribution of funds to
various departments, it should inter alia be seen that the total amount distributed does not
exceed the amount sanctioned by the Railway Board for the Railway as a whole. In auditing
sanctions relating to reappropriations, the instructions contained in Paras 375 to 381 FI as
well as those communicated through the Railway Board's budget orders on reappropriations
should be borne in mind.
804. Check of Journal Vouchers including scrutiny of Adjustment Mema: The selection
of J ournal Vouchers for audit should initially be obtained as per the percentages fixed. In
respect of the selected J ournal Vouchers, the sub-vouchers should be listed out according to
the monetary ranges prescribed and selection of sub-vouchers obtained to the same extent as
per J ournal Vouchers (Circular No.Au/COR/Secret/VI dt.9.2.76).
i. If the number of vouchers is large a maximum of 10 numbers bearing more money
value may be selected and listed alongside the main J ournal Voucher.
ii. J ournal Vouchers for the month of March will be checked 100%.
Detailed instructions laid down in Para 387 of Railway Audit Manual may be seen.
Besides, whenever amounts are adjusted between Capital and Revenue by operating the
heads "Transfers Revenue" and "Transfers Capital", the Capital J ournal Vouchers should be
linked with the corresponding Revenue J ournal Vouchers and vice versa. In auditing the
J ournal Vouchers relating to Transfer Transactions, Remittance Transactions normally dealt
with by the Books Section, it should also be seen that:
(i) The debits raised against Government Departments have been accepted by the
Departments concerned; and
(ii) In the case of Transfer Transactions with other Railways, necessary transfer
certificates are accompanying the J ournal Vouchers and that the supporting vouchers
have been duly accepted and allocated to the correct Heads of Account.
805. Tracing the postings from Journal Vouchers into Journals: The particulars of
J ournal Vouchers selected for audit in a month should be advised by Headquarters Auditing
Sections including Traffic Audit Section to the Books and Budget Headquarters Audit
Section.
The Capital and Revenue J ournal Vouchers prepared should be got selected to
the extent prescribed and traced into the Capital and Revenue J ournals by the Books and
Budget Headquarters Audit Section. If the number of J ournal Vouchers selected for audit
does not come up to the number of J ournal Vouchers selected for tracing into J ournal, a
subsidiary selection should be obtained by Books and Budget Headquarters Audit Section to
make up the deficiency and get these J ournal Vouchers also audited by the sections
concerned. Similarly, the Books and Budget Audit Sections attached to the Divisions,
Workshops etc. should trace the J ournal Vouchers selected into Works/Revenue Allocation
Registers and the J ournals maintained by the respective Accounting Units.
239
806. Check of monthly accounts with schedules and Journals (Capital and Revenue):
The Capital and Revenue Account Current should be checked monthly to the extent
prescribed. Account Current for the month of March should be checked completely. During
the check of monthly accounts, the totals in the J ournals of the amounts debited and credited
to each detailed head should be checked and traced into the summary at the end. The total
debits and credits to the main Heads of Accounts booked in the Capital and Revenue J ournals
should be traced into the debit and credit columns of the Ledgers. The opening balance of the
month in the Ledger should be verified with the closing balance of the previous month. The
correctness of the closing balance should then be checked. It should be seen that the Heads
of Account shown in the Ledgers, J ournals and Account Current are correct and upto date. It
should also be seen that the Account Current are supported by proper schedules that
accompany them and that the totals of the entries in the schedules agree with the figures
under the respective Heads shown in the Account Current. After the check of the Account
Current compiled by the Divisional Accounts Officers, Accounts Officers (Construction) and
Workshop and Stores, the corresponding Audit Offices should send an advice of audit to the
Branch Officer, Books and Budget Headquarters Audit Section, by the 25
th
of each month to
enable the latter to verify the consolidated Account Current for the entire Railway compiled
by the Financial Adviser and Chief Accounts Officer. As regards the consolidated Account
Current sent to the Railway Board monthly, a register (vide Para 339 A-I) is maintained
separately for Capital and Revenue Account Current by the Headquarters Books Section of
the Accounts Office for consolidating the details received from the several units. The
postings in the register should be first checked with reference to the Account Current
received from the various units. The correctness of the totals should then be checked.
Thereafter, the consolidated Ledgers and Account Current should be checked with reference
to this register.
The fair copies of the consolidated Account Current relating to the entire
Railway for the month of March are sent to this office by the Financial Adviser and Chief
Accounts Officer, Secunderabad, before despatch to the Railway Board for recording the
certificate compared with the office copy and found to be a true copy, prescribed in Para
388 of Railway Audit Manual, along with the office copies. After comparison of the Account
Current, the certificate should be recorded therein and returned to the Accounts Office,
retaining one copy each of the Account Current for record in this office. The check of the
Account Current should be taken up separately and completed by the due date.
(Para 372 of Railway Audit Manual and Paras 323 to 331 AI)
807. Pay orders for payment of unpaid wages: Pay orders for payment of unpaid wages
should be audited in accordance with the instructions contained in Para 376(3) to (5) of
808 Budget Registers and Reappropriation Statements: The financial reviews prepared
by the Accounts Officer every month and submitted to the Executives and the latters remarks
to the reviews should be scrutinised, in terms of Paras 399 and 400 of Railway Audit Manual
and Paras 375 to 381 of Finance Code Vol.I.
809. Check of vouchers in connection with inter-dominion transactions with Pakistan
Government: With a view to seeing that irregularities noticed in audit on the check of
vouchers relating to inter-dominion transactions with Pakistan Government are rectified and
necessary adjustments are carried out promptly, the vouchers sent by this Railway to the
Railway Board in support of monthly advice of debits/credits to be raised against Pakistan
Government as well as the vouchers received from the Railway Board in respect of
debits/credits raised by them should be checked by the Books and Budget Audit Section and
240
all other auditing sections concurrently before the vouchers leave the Accounts Office. For
this purpose, the Financial Adviser and Chief Accounts Officer has been advised to make
available to audit the vouchers and other relevant documents for check.
The auditing sections should check and return the vouchers within two days of
their receipt in this office. The supporting vouchers accompanying the inward and outward
accounts should be checked to the extent prescribed.
Books and Budget Audit Section (Headquarters) is responsible for the check
of consolidated advice of outward transactions sent to the Railway Board. In order to enable
the Books and Budget Audit Section (Headquarters) to ensure that the detailed accounts and
vouchers consolidated have been duly checked, an advice of audit should be sent by the
respective auditing sections to the Books and Budget Headquarters Audit Section each month
as soon as the accounts and vouchers relating to the inter-dominion transactions are checked.
A Nil report should be sent if there are no transactions during the month.
The inward schedules of debits/credits received from the Railway Board and
sent by the Accounts Office should be checked by the Auditing Sections concerned and the
results intimated to Books and Budget Section (Headquarters). The latter should verify that
items intimated to the Railway Board after acceptance have been pre-checked in Audit.
810. Review of Suspense Register: The suspense register Accounts with Pakistan
Government Railways should be reviewed quarterly to see that it has been correctly posted
and the outstandings are cleared expeditiously.
(D.A./S.C.Rly.s letter No.Au/BHQ/4/Inter-Dominion to F.A.&C.A.O./SC).
811. Inter-dominion agreements, contracts, having financial implications: As and when
cases of agreements and contracts having financial implications reached at inter-dominion
level are noticed, they should be reported to the Comptroller and Auditor General(Rlys). The
progress made in the implementation of the terms and conditions of such agreements should
be continuously watched and progress reports indicating the position as at the end of J une and
December should be furnished so as to reach the Comptroller and Auditor General(Rlys) by
30
th
J une and 31
st
December every year. If there is no material a Nil report should be sent.
(DRAs letter No.A.8/10/53 dated 8.6.1955)
812. Registers of (i) Irregularities (ii) Serious Irregularities (iii) Losses and (iv) Registers
of overpayments foregone: These registers maintained in the Accounts Offices should be
reviewed by the Books and Budget Audit Section at Headquarters and in Branch Offices.
While reviewing the registers, the relevant files of Accounts office should also be reviewed to
see whether:
(i) the case could be considered for a comment in the Audit Report;
(ii) action taken by Administration is adequate, and
(iii) safeguards exist to avoid recurrence of such irregularities.
The results of the review should be recorded in the Selection Register and
submitted to the Branch Officer.
(Paras 861, 847-AI and Paras 477 and 492 of Railway Audit Manual)
813. Review of Register of Major and Minor Deviations: The Register maintained in the
Accounts Office should be reviewed and a report sent to Books and Budget Headquarters
241
Audit Section by Books and Budget Audit Sections in Divisions/Construction Audit Units
etc. indicating major and minor deviations noticed by Accounts Office as well as in Audit.
"Nil" return need not be sent.
814. Reconciliation of unpaid wages with General Books: While conducting the review in
audit, the instructions contained in Paras 316-319 and 614 (i) A-I should be borne in mind.
815. General Cash Book: See Para 367 of Railway Audit Manual.
816. Cashier's Cash Book: The general instructions of Audit are contained in Para 368 of
Railway Audit Manual. The following points should also be seen.
(a) The opening balance agrees with the closing balance of the previous day.
(b) The total traffic collection tally with the total of the summary of traffic check sheets
(Para 1943 AI).
(c) The miscellaneous collections tally with the daily total of the miscellaneous cash
receipt books.
(d) The remittances into treasuries agree with the amounts in the counter foils of
remittance notes and they are supported by the Treasury receipts (Para 1944 A-I).
(e) The closing balance is correct and agrees with the closing cash balance shown in the
General cash book maintained by the Books Section.
(f) The cash book has been checked daily by the Accounts Officer, and
(g) The cash balance with the Chief Cashier has been verified by an Accounts Officer as
contemplated in Para 1919 AI.
(Paras No 1907-1993 A.I.)
817. Divisional Cashier's(including cashiers) cash book.: It should be seen that:
(i) the opening balance of each day is correct with reference to the closing balance of the
previous day;
(ii) all the cheques issued in favour of the Divisional Cashier for disbursement of the bills
included in the Abstract of Bills(Co7) passed during the month have been correctly
taken to account in the cash book;
(iii) the receipts of the payees are forthcoming in all cases where payments have been
made;
(iv) treasury receipts are forthcoming for amounts returned as unpaid;
(v) no bills are retained by the Divisional Cashier beyond the period permitted under
Para 1988 AI;
(vi) the arithmetical totals are correct;and
(vii) the acquittance certificate has been recorded by the Accounts Officer on the cash
book (Para 1963 AI).
(Paras 1962 and 1963 A.I.)
818. Review of Miscellaneous Advances and Deposit Miscellaneous Registers: In
reviewing the registers, it should be seen whether the instructions contained in Para 322 AI
are being observed. The outstandings at the end of the month of accounts selected for audit
242
should be traced back to the month of origin in addition to a general review. The instructions
contained in Para 610 and 614 (3) A.I. and Paras 381 and 382 of Railway Audit Manual
should be borne in mind.
(Paras 320 and 321 A.I.).
819. Review of Demands Payable Register: It should be seen whether the balances as per
the register are reconciled monthly with those appearing in the General Books (Para 322
A.I.). While reviewing the register, the instructions contained in Para 611 A.I. should be
borne in mind (Para 220 A.I.).
820. Adjustment with other Government Departments: With the departmentalisation of
Government Accounts, the transactions arising between the Ministry of Railways and the
other Ministries of the Central Government and the State Government are settled by the issue
of cheques or Government drafts except in the case of transactions mentioned in Para 402
A.I. It should be seen that the entire balance under "Reserve Bank Suspense" is cleared by
the end of each financial year and that there is no undue delay in the clearance of items
relating to "Accounts with States". It should be further seen that when sufficient details are
not available for adjusting to the appropriate service head, the items included in the accounts
and vouchers are adjusted by operating "Miscellaneous Advances" (Para 223 (a) A.I.) by per
contra adjustment to Reserve Bank Deposits(Railways) and not the suspense head "Reserve
Bank Suspense". The instructions regarding reconciliation of balances under the suspense
heads of accounts and the suspense head "Reserve Bank Deposits" contained in Paras 432,
444 and 445 A.I. may also be borne in mind.
(Para 371 of Railway Audit Manual and Paras 402 and 436 A.I.).
821. Transfers within the Railways and Transfers with other Railways: See Para 404 to
407 A.I. and Para 373 of Railway Audit Manual.
822. Branch Line Contracts: There are no branch line contracts on the South Central
Railway.
(Para 378 of Railway Audit Manual )
823. Debt Head Report: The Debt Head Report will be compiled by the Accounts Officers
attached to Divisions, Constructions, Workshops etc. in respect of Debt Heads operated by
them and sent to the Headquarters Books Section of the F.A.&.C.A.O.'s Office,
simultaneously endorsing a copy thereof to the Audit Officers concerned for verification.
The respective audit section will verify the reports with reference to the previous year's
audited statements and ledgers maintained in the Accounts Offices and forward Audit
remarks to A/cs.
In auditing the Debt Head Report, it should be seen whether the general
instructions issued by the Railway Board in their letters mentioned below for the compilation
of the reports have been complied with:
(1) 61-ACI/8/60-61 dated 17.8.1961.
(2) 62-ACI/8/1/61-62 dated 17.5.1962.
A copy of the audited Debt Head Report together with comments which could
not be settled at the unit level will be forwarded by the auditing sections to Books and Budget
243
Based on the Debt Head Reports received from the various Accounts Officers,
the Headquarters Books Section of Financial Adviser and Chief Accounts Officer's Office
will prepare a consolidated Debt Head Report for the entire railway and forward the same to
the Railway Board and the Books and Budget Headquarters Audit Section. The latter will
check the report bearing in mind the observations made by other auditing sections. The
Books and Budget Headquarters Audit Section will return the audited copy of the Debt Head
Report to the Financial Adviser and Chief Accounts Officer incorporating the audit certificate
prescribed in Para 8(g) of the Railway Audit Manual. A copy of the audited Debt Head
Report should be sent to the Comptroller and Auditor General(Railways) by the due date.
After finalisation of the Debt Head Report, a statement showing the details of
misclassifications noticed should be drawn up in the following form by the Audit Offices
concerned and sent to the Books and Budget Headquarters Section, duly accepted by their
Accounts counterparts.

Sl.
No.
Brief
particulars of
misclassifi-
cation
Head of
Account
(credited/
debited)
Correct Head of
Account which
should have
been credited or
debited
Amount Remarks
1. 2. 3. 4. 5. 6.

Based on the reports received from the Unit Audit Officers and those
irregularities noticed while verifying the consolidated Debt Head Reports, the Books and
Budget Headquarters Audit Section will compile a statement of misclassification and forward
it to the Financial Adviser and Chief Accounts Officer for his acceptance.
When there are misclassifications, the Audit Certificate on the Debt Head
Report should be qualified. It should be noted that unlike 'Annexure-J ' Statement of
misclassifications and other mistakes, appended to the Appropriation Accounts, the Statement
of Misclassifications affecting the Debt Heads has to be prepared by Audit and the remarks of
Financial Adviser and Chief Accounts Officer thereon obtained, as it is part of audit
observations on the Debt Head Report (Comptroller and Auditor General's U.O.I. No.720-
RAII/I/6/56 dated 25
th
May 1960).
An advance copy of the statement showing the misclassifications prepared by
Audit and forwarded to the Financial Adviser and Chief Accounts Officer for acceptance
should be sent along with the audited copy of the Debt Head Report to the Comptroller and
Auditor General(Railways). On receipt of final reply to the Audit observations from the
Financial Adviser and Chief Accounts Officer, the Comptroller and Auditor General
(Railways) should also be intimated.
(Paras 748-752 A.I. and Para 383 of Railway Audit Manual).
824. Capital and Revenue Accounts: The Auditing Sections will verify the information
furnished by the Accounts Officers at Headquarters and Divisions for compilation of Capital
and Revenue Accounts and intimate results thereof to Books and Budget Headquarters Audit
Section. The Financial Adviser and Chief Accounts Officer will compile the Capital and
244
Revenue Accounts of the Railway and forward them to the Railway Board furnishing
simultaneously copies thereof to the Books and Budget Headquarters Audit Section for
verification. In scrutinising the Capital and Revenue Accounts, the instructions contained in
Para 374 of Railway Audit Manual should be borne in mind. The Capital and Revenue
Accounts will be checked in detail as indicated in the following paragraphs. Irregularities
noticed should be pointed out to the Financial Adviser and Chief Accounts Officer for
rectification.
Statement No.I: Statement of Capital Outlay authorised: This will be checked with the final
copy of the previous year's account, the ledger and the audited copies of the statement of
Transfers Without Financial Adjustment sent to the Comptroller and Auditor General
(Railways) separately.
Statement No.II: Stock and Share Capital created showing the proportion received.
Statement No.III: Capital raised by loans, debentures and debentures stock.
Statement No.IV: Receipts and Expenditure on Capital Account.
Statement No.VII: Capital Powers and other assets available to meet the other expenditure.
These statements relate to worked lines. As there are no worked lines on the
South Central Railway, these statements are not prepared.
Statement No.V: Details of Capital Expenditure for the year. In this statement, the
expenditure during the year will be shown by main Heads of Accounts (final Heads of
Accounts) under the major head 546-Cap. Outlay on Indian Railways (Commercial) in
respect of Open Line and in respect of each of the new constructions separately. The
statements received from the various auditing units showing the actual expenditure for the
year by detailed Heads of Accounts under the said major head will be consulted to verify the
correctness of the figures shown in the consolidated statement as well as in Schedule 'C'
appended to the Finance Accounts. It should be ensured that the totals under each of the
minor Heads of Account under the said Major Head in respect of open line and each of the
new constructions agree with the figures shown in the ledger and relevant schedules sent with
the Capital Account Current for March.
Statement No.VI: Statement showing estimates of further expenditure on Capital Account.
The details in respect of open line and each of the new constructions will be indicated
separately in this statement also. The figures shown under the Column "Total expenditure
from commencement of operation to the end of the year" should be verified with reference to
the figures shown in the previous year's final copy of the Accounts, the expenditure during
the year shown in Statement V of the current year and the amounts of transfers effected
without financial adjustment affecting the Heads of Account as shown in the audited copies
of the statement sent to the Comptroller and Auditor General (Railways).
The figures shown against each minor Head of Account in respect of Open
Line and each of the new constructions should also be verified with those indicated in the
ledger/relevant schedules accompanying the Capital Account Current for March.
Statement No.VIII: Capital Account: The details shown in this statement will be checked with
those shown in the final copy of the previous year's accounts and Statement No.VI of the
current year.
245
Statement No.IX: Revenue Account: The details of earnings given in the statement will be
verified with the details shown in the schedule of earnings enclosed to the Account Current
(REV) for March.
As regards working expenses, the statements received by the auditing sections
from the respective Accounts Officers will be checked with the Revenue Allocation Sheets of
their units and results advised to Books and Budget Headquarters Audit Section, which will
verify the details with reference to the statements received from other Auditing sections.
Statement No.X: Distribution of the actual earnings and proportionate shares of working
expenses of the various lines comprising the Railway Systems:
The particulars of actual earnings and proportionate shares of working
expenses of the various lines of the South Central Railway system will be verified with those
shown in Statement No.IX.
Statement No.XI: Summary of Working Expenses: This will be checked with reference to the
audited statements received from the various units.
Statement No.XII: Detailed accounts of Revenue working expenses: The details received from
the various units duly audited will be traced into gauge-wise consolidated allocation sheets in
respect of each of the Revenue Abstracts prepared by Headquarters Books Section of the
Accounts Office. The correctness of the totals shown in the consolidated sheets will also be
checked. The details shown in the above statement will be verified with the checked details
in the consolidated allocation sheets. It should be ensured that the particulars given in the
statements agree with those shown in Statement No.XI.
In the case of all abstracts, it should be ensured that the various sub-detailed
Heads of Account are current and all Heads of Account are exhibited irrespective of whether
expenditure is booked against any head or not. For this purpose, the audited copy of the
statement showing the changes in the form and classification sent to the Comptroller and
Auditor General (Railways) should be referred to.
Statement No.XIII: Detailed Accounts of Revenue Earnings: The information furnished by the
Traffic Accounts Branch for incorporation in this statement will be verified by the Traffic
Audit Section with reference to the records maintained in the Traffic Accounts Branch
(Sundry) and an audited copy thereof furnished to the Books and Budget Headquarters Audit
Section. Based on the advice received from the Traffic Audit Section, the Books and Budget
Headquarters Audit Section will check the correctness of the details given in this statement.
Statement No.XIV: Statement of outstanding earnings: The details furnished for this statement
by the Traffic Accounts Branch will be verified by the Traffic Audit Section with reference to
the station balance sheets as regards station outstandings and with the Accounts Office
Balance Sheets and Register of Bills Recoverable in regard to other outstandings and results
advised to Books and Budget Headquarters Audit Section, which will check the statement
with reference to the report of Traffic Audit Section.
Statement No.XV: Net Revenue Account: The figures of Dividend Payable to General
Revenues for the year shown in this statement should be verified with reference to the audited
final copy of the statement showing the detailed calculations of Dividend Payable to General
Revenues forwarded to the Comptroller and Auditor General (Railways).
Statement No.XVI: Account of Total Net Receipts: This will be checked with the final copy of
the previous years account, the Revenue Ledger and statement No.IX of the current year.
246
Statement No.XVII: Dividend Account: This will be checked with the previous years final
copy of the accounts and statement No.XVI of the current year.
Statement No.XVII-A: Statement showing capital at charge and calculation of Dividend
payable to General Revenues.
Statement No.XVII-B: Statement showing details of subsidy under specific heads received
from General Revenues.
These should be checked with the audited copies of the statements sent to the
Comptroller and Auditor General (Railways) separately.
Statement No.XVIII: Depreciation Reserve Fund Account: The opening balance in the fund
shown in the statement should be checked with the closing balance indicated in the accepted
copy of the previous years accounts and the statement showing transfers effected without
financial adjustment during the year. The amount of replacement and renewals expenditure
and credits for released materials will be checked with the schedules of the working expenses
accompanying the Account Current for March of the year. The amount of appropriation to
Depreciation Reserve Fund and closing balance will be verified with the consolidated
Revenue Ledger. The figure of interest charges should be the same amount as shown in the
transfer certificate sent to the Railway Board.
Statement No.XVIII-A: Railway Pension Fund: The process of check of this statement is
similar to the one adopted for Statement No.XVIII mentioned above. While checking the
correctness of the amount of appropriation to Pension Fund, the appropriation to the fund in
respect of Railway Audit staff should be checked with reference to the amount shown in the
schedule of expenditure under 345-Indian Railways Policy Formulation, Direction, Research
and other miscellaneous organisation accompanying the Account Current for March. The
method of calculation of interest on the balance in the funds is also the same as for
Depreciation Reserve Fund.
Statement No.XVIII-B: Accident Compensation Safety and Passenger Amenities Fund.
Statement No.XIX: Expenditure under 345 Indian Railways Policy Formulation, Direction,
Research and other miscellaneous organisation: It should be seen that the minor heads as well
as main heads under each minor head have been exhibited in the order laid down in the list of
Major and Minor Heads of Account in Appendix IV-A.I., as amended from time to time. The
details of outlay shown against the various minor heads should be verified with reference to
the reports received from the various auditing units, schedule accompanying the Account
Current for March and the audited copy of the statement for the previous year. The
correctness of the figures of outlay to the end of the year should be checked taking also into
account the amounts transferred without financial adjustments, if any, during the year.
Details furnished in the statement showing the detailed account of expenditure
on closed surveys should be verified with the audited copy of the previous years accounts as
well as additions/deletions, if any, during the year, as intimated by the corresponding audit
sections.
Statement No.XX: Expenditure charged to Development Fund.
Statement No.XXI: Expenditure charged to Open Line Works Revenue:
(i) The details of outlay to end of the year should be checked with reference to the
audited statement of the previous year.
247
(ii) The audited copy of the statement of transfers without financial adjustments, and
(iii) The Statements indicating the details of expenditure during the year (charged to
Development Fund Open Line Works Revenue) received from the various
auditing Units.
The following points should be borne in mind in checking the statements:
(a) The nomenclature of the main and sub-heads shown in these statements is that
prescribed in Appendix IV to the Indian Railway Code for the Accounts Department
Part.I.
(b) The figures of outlay for the year under each of the minor heads under Development
Fund and Open Line Works Revenue agree with the net figures appearing against
the concerned items in the relevant schedules sent with the Revenue Account
Current for March of the year. It should be ensured that differences, if any, due to
rectification through Capital and Revenue Accounts in terms of para 922 Finance
Code, are explained suitably through foot notes in the statements.
(c) It should be seen that even though the figures Credits in respect of Development
Fund (I and II) are shown separately in the Schedule to the Account Current, they
are not shown as a separate item in the Statement No.XX (such credits should be
merged with the expenditure relating to the main and sub-heads under the said
minor heads).
(d) At times, certain items of expenditure booked under Development Fund and Open
Line Works Revenue do not fall under any of the minor sub-heads under the various
minor heads of account. In such cases, the amount should be included under such
sub-heads in which they could be merged based on the description of the items
given by the units and a suitable foot note given in the schedule concerned.
After finalisation of the points raised by audit, the Financial Adviser and Chief
Accounts Officer will arrange to get the Accounts printed and furnish printed copies of the
Capital and Revenue Accounts to Audit.
Advance copies of the Capital and Revenue Accounts together with the audit
certificates prescribed in Para 388 of Railway Audit Manual should invariably be sent to the
Comptroller and Auditor General (Railways) as soon as their audit is completed. When the
printed copy of the account is received, it should also be sent to the Comptroller and Auditor
General (Railways).
(Chapter VII A.I.)
(Comptroller and Auditor General (Railways) letter No.2621-RAII/4-11/61
dated 19.7.1961).
824. Finance Accounts: The instructions issued through Comptroller and Auditor Generals
letter dated 19.7.1961 mentioned in preceding Para are also applicable in the case of Finance
Accounts.
(Paras 728-747 A.I. and Para 380 of Railway Audit Manual)
825. Statement showing Transfers Without Financial Adjustments: The Unit Accounts
Officers will compile this statement and send to the Financial Adviser and Chief Accounts
248
Officer, furnishing copies thereof simultaneously to the respective Audit Officers for
verification. The Audit Officers after verification of the statement will advise the results to
the Books and Budget Headquarters Audit Section, which will audit the statement compiled
by the Financial Adviser and Chief Accounts Officer for the entire Railway based on the
advices received from the Unit Audit Officers. Copies of the audited statement will be
furnished to the Comptroller and Auditor General (Railways). In checking this statement, it
should be seen that in respect of inter-Railway adjustments, the acceptance of the Foreign
Railways to the inclusion of the amounts per contra in the statements relating to them has
been obtained and kept on record. Generally, copies of the statements relating to other
Railways will also be received in the Accounts Office if any items having per contra
adjustments with the South Central Railway are included therein. Such statements should
also be consulted to see that inter-Railway adjustments shown in the statements pertaining to
South Central Railway have been correctly reflected by other Railways.
Item of adjustments affected within the Railway (Intra Railway) should be
verified with reference to audited details received from the various units and the authority for
such adjustments. It should also be seen that in respect of adjustments relating to Loans and
advances by the Central Government and Indian Railway Deposits details of the amounts
pertaining to each of the minor heads/classified heads thereunder are furnished separately and
not in one lump.
While forwarding audited copies of the statements, copies of correspondence
between the Railway Board and the Railway Administration in support of adjustments
referred to in the statements should be sent.
Copies of general orders issued by the Railway Board applicable to all
Railways and forwarded through the Comptroller and Auditor General (Railways) need not
however be sent.
(CAG(R)s letter No.2719-RAII(L)1-7/62 dated 29.8.1962).
826. Statement showing calculations of Dividend Payable to General Revenues: The
figures shown against the items Total Capital-at-Charge and Capital outlay incurred on
new lines to end of previous year under Deduct entry will be checked with those
appearing in the audited copy of the statement for the previous year. The outlay on New
Lines which have been opened for traffic should not be taken into account till the end of the
fifth year of their opening for traffic. The amount of Transfers Without Financial
Adjustments during the year should be verified with reference to the audited statement sent to
the Comptroller and Auditor General (Railways). The figures of over-capitalisation should
be verified with those advised by the Railway Board in their letter No.F(X)/III-61 Cg.I dated
30.10.1963 and accepted by the Comptroller and Auditor General (Railways). The
correctness of net capital at charge to end of previous year should then be verified. The
figures of capital out-lay incurred from 1.4.1980 to end of previous year should be verified
with the audited statement for the previous year. The figures of capital outlay during the year
including new constructions and the capital outlay on New Lines (appearing under deduct
entry) should be verified with reference to the schedules appended to the Capital Account
Current for March of the year. Thereafter, the correctness of the figures of the net capital
outlay incurred during the year (and half thereof) will be verified. The correctness of the
dividend payable on the capital at charge to end of 1979-80 for which a lower rate is
applicable and on the Capital Outlay for subsequent periods should be checked. It should be
seen that the rate of interest advised by the Railway Board for calculation of dividend payable
on the element of over-capitalisation has been correctly adopted.
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The correctness of the amount of deferred dividend repayable in respect of any
New Line which has completed the moratorium period should then be verified with reference
to the Statement of Deferred Dividend, described in the following paragraph. The total
amount of dividend for the year proposed to be paid will then be verified.
827. Statement of Deferred Dividend: This will be prepared according to the instructions
contained in Railway Boards letter No.57-AC/I/7 dated 8.5.1957, an extract of which is
given below:
In terms of Para 19 of the Report of the Railway Convention Committee
1954, dividend on capital at charge on new line should be computed at a lesser
rate viz., the average borrowing rate charged to the Commercial Departments.
The dividend so calculated for the period of construction of the lines and upto
the end of the fifth year of their opening for traffic, is to be deferred during
that period. From the sixth year onwards, current dividend will be paid. In
addition, deferred dividend is to be paid if the net income of these lines leaves
a surplus after payment of current dividend.
A statement showing the Capital outlay in respect of each new line and
deferred dividend etc. should be submitted as an enclosure to the statement.
828. Contingency Fund Exhibition of transactions in the combined Finance and
Revenue Accounts: The Headquarters Books Section of the Financial Adviser and Chief
Accounts Officers Office will compile the statement in the form prescribed and forward it to
the Railway Board furnishing copies thereof to Audit for verification. The Books and Budget
Headquarters Audit Section will verify the statement with reference to the audited copy of the
statement for the previous year, the sanctions received from the Railway Board showing the
amounts allotted from the Contingency Fund of India during the year, Account Current for
March and the registers maintained in Accounts Office. It should be seen that suitable foot
note in regard to the advance taken from the Contingency Fund of India and recouped to the
Fund during the same year is given in the Fund Account in terms of Railway Boards letter
No.72-AC/1/7/4 dated __June, 1973. The results of verification will be intimated to the
Financial Adviser and Chief Accounts Officer. A copy of the audited statement will be sent
to the Comptroller and Auditor General (Railways).
(Railway Boards letters No.55 ACI/7/5 dated 17.3.1956, No.55 ACI/7/5 dated
27.5.1956, No.61 ACI/7/4 dated 16.8.1961 and Comptroller and Auditor Generals letter
No.RAII/T4-2/55 dated Nil).
829. New Services not contemplated in the Budget: In order that cases of New
Service/New Instrument of Service could be avoided as far as possible, the Comptroller and
Auditor General has decided that where an Accountant General feels a doubt about a
particular expenditure sanction whether the expenditure attracts the provisions of New
Service/New Instrument of Service, he should immediately (prior to authorisation of
payment) take up the matter demi-officially with the Secretary/J oint Secretary of the
Administrative Ministry concerned with a copy to the J oint Secretary to the Ministry of
Finance (Budget) for reconsideration. Copy of the reference made by the Accountant
General should also be endorsed to the Comptroller and Auditor General along with a brief
history of the case. The underlying intention is that if the Administrative Ministry/Ministry
of Finance does not agree with the views of the Accountant General, the matter can be
discussed by them with the Comptroller and Auditor Generals office to resolve the
difference of opinion quickly without unduly delaying the expenditure. If it is finally held
that the case attracts the provisions of New Service/New Instrument of Service, action
250
could be initiated by the Department for obtaining supplementary grant or an advance from
the Contingency Fund of India. This procedure is applicable only to cases of expenditure
sanctioned by the Central Government.
(CAGs letter No.1912-REP/274-65 dated 24.9.1968; received under
A.D.A.I.(R)s letter No.4626-RR/6-1/68 dated 28.10.1968).
On the Railway side 'authorisations' to executive officers to incur expenditure
on works are issued by competent authorities and copies of such 'authorisations' are endorsed
to the respective Principal Directors of Audit. On receipt of such 'authorisations', the
concerned auditing sections may, in addition to the works contained in the Works, Machinery
and Rolling Stock Programme of the Railway for the year, review such works as desired in
Comptroller and Auditor Generals letter mentioned above to see if expenditure thereon does
not attract the provision of New Service/New Instrument of Service and take up the matter
with the Railway Administration, if necessary, with the least possible delay.
(CAG(R)s letter No.704-RR/6-1/68 dated nil).
A report on New Services not contemplated in the Budget including
expenditure on individual surveys which exceeded Rs.1 lakh should be sent to the
Comptroller and Auditor General in October every year.
(CAGs letter No.3570-RR/8-1/66 dated 25.11.1966).
APPROPRIATION AUDIT
830. Annual Budget Revised and Budget Estimates: The Heads of Departments and
Divisional Railway Managers of the Railway are responsible for framing at various stages the
budget estimates correctly. For this purpose, each Head of Department as well as the
Divisional Railway Manager nominates a Budget Officer. The nominated Budget Officer in
the Division will furnish the budget estimates duly scrutinised by the Accounts Officer
concerned to the Head of Department concerned. The Heads of Departments concerned will
furnish the budget estimates to the Financial Adviser and Chief Accounts Officer for scrutiny.
Thereafter, the Central Budget Section functioning under the supervision of the Financial
Adviser and Chief Accounts Officer will consolidate the estimates and send them to the
Railway Board. On receipt of approval to the estimates from the Railway Board, the Heads
of Departments will be advised about the grants pertaining to their departments. On the basis
of budget orders issued by the Railway Board, the Heads of Departments will, in turn, furnish
to Financial Adviser and Chief Accounts Officer the statements showing the proposed
distribution of grant between Headquarters and Divisions. To exercise effective control over
expenditure, the budget grant placed at the disposal of the department shall be distributed
over the entire year. Financial reviews shall be prepared every month by the Accounts
Officer concerned and sent to the Budget Officer who will furnish self-contained remarks to
the Accounts Officer for variations, demand-wise by detailed head of demand/department.
The consolidated position for the department as a whole of all the divisions will be discussed
in Heads of Departments meeting for which necessary notes will be prepared by the Central
Budget Section. The position of requirement of funds under the various grants will be
examined by the Railway Administration at various stages viz., at the time of preparation of
August Review, Revised Estimates and Final modifications.
251
(F.A.&.C.A.O.s circular letter No.SC/CB/1966/1 dated 1.10.1966 circulated
under Books and Budget (Headquarters) letter No.Au/BHQ/4-Vol.II/16 dated 4/71 and
Chapter III of Finance Code).
831. Appropriation Accounts: The form in which the Appropriation Accounts of the
Railways are prepared, the various statements and appendices to be enclosed to the
Appropriation Accounts and the instructions for their preparation are contained in Chapter IV
of the Finance Code. In addition, further detailed instructions for preparation of all grants
and compilation of various annexures to the Appropriation Accounts embodying the latest
orders of the Railway Board are issued by the Financial Adviser and Chief Accounts Officer
from time to time for the guidance of all concerned. Copies of these instructions together
with audit instructions, wherever necessary, are sent to all auditing sections by the Books and
Budget Headquarters Audit Section.
The audit of Appropriation Accounts has to be conducted keeping in view the
method of budgeting, the procedure of allotment of funds, the reviews undertaken to watch
the progress of expenditure against the allotments and steps taken to avoid excess over
allotments or to surrender excessive funds or to obtain additional funds required. The
instructions contained in Chapter III to V of Finance Code, Chapter XX and Appendix 5 to
Railway Audit Manual and the subsidiary instructions issued by the Railway Administration
and Books and Budget Headquarters Audit Section from time to time should be borne in
mind in auditing the Appropriation Accounts.
The Appropriation Accounts, the statements and appendices to be enclosed
thereto, are prepared by the various accounting units. These are consolidated for purposes of
presenting the same for the Railway as a whole by the Central Budget Section functioning
under the supervision of Financial Adviser and Chief Accounts Officer. The audit of the
Appropriation Accounts, statements etc. relating to an individual unit, prepared by the
Accounts Officer responsible for the maintenance of the accounts of that unit devolves on the
corresponding Audit Office/Section. The audit of the consolidated Appropriation Accounts
and the statements etc. accompanying the same is conducted by the Books and Budget
Headquarters Audit Section with reference to the audited copies of the Appropriation
Accounts and statements etc. pertaining to the units received from the different Audit
Offices/Sections.
For the purpose of submission of the Appropriation Accounts of the Railways
in India and the Audit Report thereon to the Lok Sabha/Rajya Sabha promptly by the date
fixed for the purpose, a detailed time table for submission of the various accounts, annexures
and statements of the individual Railway Administrations to the Railway Board and to the
Comptroller and Auditor General by the Principal Directors of Audit will be drawn up each
year by the Railway Board in consultation with the Comptroller and Auditor General of
India. Copies of the same will be sent to the Railway Administration. Based on this, the
Financial Adviser and Chief Accounts Officer will draw up a similar programme laying down
the dates on which the statements should be furnished to the Headquarters office, duly
scrutinised by Accounts and Audit. The accounts and statements received from the various
Accounts Officers should be audited by the auditing sections concerned on top priority basis
and the Books and Budget Headquarters Audit Section advised sufficiently in advance to
enable that section to check the consolidated Appropriation Accounts and Annexures and
intimate results thereof to the Comptroller and Auditor General of India by the due dates
fixed by the latter. To eliminate all avoidable delays, it is imperative that objections noticed
as a result of check of Appropriation Accounts should be settled expeditiously, inter-alia, by
holding discussions with the Accounts and Executive Officers at the appropriate level and not
252
left to be resolved by resorting to routine correspondence. The following Appropriation
Accounts and Annexures including Grand Summary are sent to Audit for check.
Detailed Appropriation Accounts:
Grant No.1 Railway Board
Grant No.2 Miscellaneous Expenditure (General)
Grant No.3 General Superintendence and Services
Grant No.4 Repairs and Maintenance of Permanent Way Works.
Grant No.5 Repairs and Maintenance of Motive Power.
Grant No.6 Repairs and Maintenance of Carriages and Wagons.
Grant No.7 Repairs and Maintenance of Plant and Equipment.
Grant No.8 Operating Expenses Rolling Stock and Equipment.
Grant No.9 Operating Expenses Traffic.
Grant No.10 Operating Expenses Fuel.
Grant No.11 Staff Welfare and Amenities.
Grant No.12 Miscellaneous Working Expenses
Grant No.13 Provident Fund, Pension and other Retirement benefits.
Grant No.14 Appropriation to Fund.
Grant No.15 Dividend to General Revenues Repayment of loans taken from General
Revenues and Amortisation of over-capitalisation. (To be compiled in Railway
Boards office).
Grant No.16 Assets, Acquisition, Construction and Replacement.
Civil Grants:
(i) Loans and Advances.
(ii) Interest on Debt and other obligations.
(iii) Prepartition payments.
Part Review: Subsidiary statements and Accounts including Grand Summary.
(Please see paras 433, 436, 437, 438, 439, 440, 449, 457 and 464 Finance
Code).
832. Check of Appropriation Accounts: The Appropriation Accounts of all Grants except
Grant No.14 should be checked to see that:
253
(a) the original grant amount as shown in Appropriation Accounts agrees with the amount
allotted to the unit by the competent authority,
(b) the supplementary grant amount should agree with the amount as shown in the
distribution statement of supplementary grant sanctioned by competent authority,
(c) the residuary modification as shown in Column I should agree with difference
between original grant +supplementary grant sanctioned by competent authority,
(d) the final grant amount as shown in the Appropriation Account should agree with the
final grant allotted to the unit by the competent authority,
(e) the actual expenditure should be verified with the actual amount of expenditure for
the year as shown in the March accounts (to the end of the month), and
(f) the variation shown in Column IV should agree with the difference between actual
expenditure and final grant. Excess should be shown as + and savings as -.
In Headquarters Books Section, the Appropriation Accounts should be verified
to see that the original grant amount as shown in the Appropriation Accounts agrees with the
budget grant, as advised by Railway Board in the Books of Demand for Grants. In the case of
Civil Grants, the figures will be verified from the budget orders received from the Railway
Board. The supplementary grant amount should be verified with the Book of Supplementary
Grants received from Railway Board. The final grant amount should agree with the Railway
Boards orders advising the final allotment to the Railway.
The actual expenditure should be verified with reference to the amount shown
in the relevant schedules to the final Account Current sent to the Railway Board in March.
833. Check of Civil Grants: Loans and Advances by Central Government: These
Appropriation Accounts should be checked on the same lines as that prescribed for Railway
Grants i.e. the original grant and final grants are to be verified from Railway Boards letters
and the actuals are to be verified from the Account Current. In the case of Civil Grant
Interest on debt and other obligations the figures of actual expenditure will also be
compared with the figures advised to the Railway Board.
834. Explanations in the Accounts: It should be seen that the explanations for variations
between the budget grant and actual expenditure are lucid, self explanatory illuminating and
in unambiguous terms.
The following points should also be borne in mind.
In all cases, definite reasons for the excess or savings should be given bringing
out clearly why the particular event leading to the variation could not be foreseen at the time
of the preparation of the Budget and the Revised Estimates and what circumstances arose
subsequently leading to the variation. In the case of an excess, it should be mentioned why
the incurrence of the liability could not be postponed and if, for any reason to be specified, it
could not be postponed, the explanation should bring out why necessary provision could not
be made in the Final Estimates. The explanations also should elucidate:
(a) In the case of surrenders/lapses on account of non-receipt of bills or debits for stores
(i) the sources of supply, and
254
(ii) whether the suppliers were consulted in the matter and, if so, at what stages,
and
(b) In case of increases/excesses on account of receipts of more debits or payments for
stores;
(i) When those debits etc. were received and at what stages of estimates the
suppliers were consulted.
(ii) Variations arising out of changes in procedure, allocation, further
consideration of schemes, plans etc. during the course of the year should be
reflected in the explanations relating to all the concerned sub-heads of the
grant or grants.
(iii) In the case of variations arising out of defects in estimating, it should be
clearly brought out at what stage the liability of the expenditure arose, how the
error or omission or commission occurred, why it could not be set right before
the close of the year, whether the question of individual responsibility has
been considered and if so with what result and what steps have been taken to
avoid a recurrence of such error.
(iv) In the case of variations caused by misclassifications and other mistakes in
accounting, the explanations should bring out when the errors occurred and
why they could not be detected in the course of review of expenditure during
the year and set right before the final closing of the years accounts.
(v) Whenever reference to some letters of the Railway Board is quoted in support
of the explanations, copy of the same should invariably be appended.
In the case of points referred to in items (ii), (iii) and (iv) above, it should be
ensured that the fact that the items will be included in the relevant annexure/statements is
mentioned in the explanations themselves.
In so far as the Appropriation Accounts of the Divisions/Units are concerned,
the explanations will continue to be furnished by sub-heads of grants. Further, limits below
which explanations are not required to be furnished, as laid down in the Indian Railway
Financial Code is applicable for the sub-heads of the grant as a whole and not intended to be
applied to each individual Department/ Unit/Division.
The explanations furnished in the audited copies of the accounts received from
various units will be consolidated in the Headquarters Books and Budget Audit Section to
verify the explanations furnished in the consolidated accounts received from the Financial
Adviser and Chief Accounts Officer.
835. Framing of Audit Comments on Individual Grants/Annexures etc.: In addition to
the instructions contained in Paras 415 to 417 of Railway Audit Manual, the following
instructions should be borne in mind while framing comments, if any, considered necessary
in important cases.
(i) All the Audit comments should be based on facts and not on inferences or
assumptions.
(ii) The facts on which the comment is based should be checked thoroughly and
completely before the actual comment is framed.
255
(iii) Enquiries made by Audit as a prelude to the framing of the comment should be
thorough and pursued to finality.
(iv) In commenting on the irregularity, every endeavour should be made invariably to give
a clear and correct account of it in plain language. Wherever figures are available,
these should be indicated after ensuring the correctness of the same.
(v) To make the comment a fair and unbiased record of facts, all such details as are
essential should be incorporated in the comment.
(vi) On receipt of the Administrations remarks on a comment, a complete re-examination
of the case should be made in an impartial manner before arriving at a final view in
the matter. The comment may then be modified, if necessary, in consultation with the
Railway Administration or dropped if the re-examination shows that the comment is
not correct or otherwise unsuitable.
(vii) If the facts have been verified by the Railway Administration but the conclusion
drawn by audit not agreed to by them and still considered justifiable by Audit, a note
should be sent along with the comment explaining clearly the views of the Railway
Administration and the circumstances under which the retention of the comment is
justified.
(viii) Comments on small and unimportant variations of defects should be avoided. The
magnitude of the grant concerned should also be taken into account for this purpose.
(ix) Each comment should be typed on a separate sheet of paper and categorised on the
lines adopted in theRailway Audit Report, 1952 - Part II and Railway Audit Report
1953.
(x) Reference to the corresponding explanation number in the Appropriation Accounts
should be quoted in the margin of the comments and the remarks "accepted" by the
Administration or "Advance" should be quoted within brackets and the bottom of the
comment.
(xi) Comments on the various grants/annexures etc. should be sent to the Railway
Administration for verification of Audit conclusions and not for acceptance of the
same.
(xii) In no case should the comments be reproduced in the body of the letters sent to the
Comptroller and Auditor General of India (Railway Wing).
(xiii) Whenever Railway Board's letters to the Railway Administration or the Railway
Administration's letters to the Railway Board are referred to in the comment, copies
thereof together with the copies of relevant letters to which these may be replies,
should also be sent.
ANNEXURES
836. Annexure 'A' - Statement of Unsanctioned Expenditure: This annexure should be
compiled in the form Annexure A(I). This should be supported by two statements viz.,
256
(i) Annexure A(I), in Form F 445 - Annexure XVI which will indicate the details of
individual items of objection amounting to Rupees One lakh each or more and the
total amount in respect of objections amounting to not more than a lakh each under
the three categories separately, and;
(ii) Annexure A(II) in Form F 447 Annexure XVI showing the estimates provisionally
accepted by Accounts or Audit.
A certificate in the following form, duly signed by the General Manager, will
be appended to Annexure 'A':
"Certified to the best of my knowledge and belief that all expenditure included
in the Appropriation Accounts of South Central Railway for the year
_________ has been sanctioned by competent authority with the exception of
the items detailed in the Statement of Unsanctioned Expenditure (Annexure A)
to the Appropriation Accounts.

GENERAL MANAGER
The various Divisions/Auditing Sections will scrutinise the Annexures relating
to their Units with reference to the Register of Objectionable items of expenditure maintained
by the Accounts Office and forward an audited copy to the Headquarters Expenditure Audit
Section, which will consolidate the details for purposes of checking the consolidated
Annexure.
The method of exhibiting the figures in the revised form of Annexure 'A' has
been indicated in the specimen form enclosed with the Railway Board's letter No.62-
Appn./62-61-62 dated 18
th
December, 1962. It should be noted that while the minus
expenditure resulting from certain credit adjustments should be taken as plus for purpose of
exhibition in Annexure 'A', the amounts of expenditure will, however, be shown in Annexure
A(I) as minus figures only.
(Para 2 of the Railway Board's letter No.62-Appn./62-61-62 dated 18
th

December 1962 received under Comptroller and Auditor General of India (Railway Wing)'s
endorsement No.4380-RRI-26/62 Vol.II dated Nil).
It should also be noted that while the figures in Annexure 'A' are to be shown
in thousands of rupees, the figures in Annexure A(I) should be in units of rupees. The
various Divisions/Units should, however, indicate the figure in Annexure 'A' also in units of
rupees. In the statistics of expenditure under objection to be appended to the Annexure 'A',
the figures shown against "Total amount placed under objection during the year under review
and still under objection" should agree with the sum total of the figures shown in the columns
"Expenditure during the year" appearing under the three sections "Items dating from earlier
than previous year", "Items dating from the previous year", and "Items relating to the current
year" of the Annexure. The figure of total amount of expenditure audited during the year
under review to be shown in the statistics should be the total of the expenditure shown in the
accounts of the grants.
It should be noted that in the case of an item, which was shown in the
statement of the previous year and which is occurring in the statement of the current year
also, the figures of actual expenditures "relating to the previous year" and those "relating to
the period upto earlier than previous year" and the "month in which unsanctioned expenditure
257
was first incurred" shown in the statement of the current year agree with the details shown in
the previous year's statement. If there is any discrepancy on account of some wrong figures
having been adopted in the previous year's statements, the fact that discrepancy has been set
right in the subsequent year's statement should be specifically mentioned in the form of foot-
notes.
While forwarding the Annexure 'A' to the Comptroller and Auditor General of
India (Railways), the following details are required to be sent in a separate statement.
(i) Full particulars of items amounting to more than a lakh each, which are more than 3
years old bringing out clearly the reasons for which the expenditure could not be
regularised, should be given. In respect of items which pend regularisation for want
of Revised Estimates, completion report, or competent sanction etc. the reasons
necessitating the delay in the preparation of the Estimates/Completion Reports, so
as to bring out whether the delay in the regularisation is due to delay on the part of
Railway Administration or the Railway Board and the reasons for the revision of the
Estimates, Completion Reports etc. as well as the authority by whom the final
charges (including the nature of such charges) are under verification and from what
date may be given.
(ii) In respect of items relating to earlier than previous year, included in Annexure
A(II), the nature of the dispute and the reasons for the allocation not having been
finalised for such a long time may be given.
837. Annexure 'B' - Statement of undercharges detected by Accounts and Audit and
recovered: This should be compiled in Form F 433(7) Annexure XVII. This will be
compiled from the audited details forwarded by the Traffic Audit Section. It should be seen
that the total undercharges outstanding at the end of the year tally with the figure arrived at
by adding the total amount of undercharges discovered by Accounts or Audit during the year
excluding those withdrawn, and the total undercharges outstanding at the end of the previous
year and deducting therefrom the sum total of the amounts of undercharges recovered and
written off during the year.
838. Annexure 'C' - Statement showing remissions and abandonment of claims to
Revenue: This will be compiled in Form F 433(8) Annexure XVIII. This will be compiled
from the details relating to the various accounting units forwarded by the local Audit Offices
duly audited. The Traffic Audit Section will be requested to furnish the amounts of wharfage
and demurrage accrued during the year, if the information is not furnished in the details given
by them for the compilation of the above statement.
The following points should be borne in mind by the Traffic Audit Section
while scrutinising the details relating to their units:
(i) Amounts of inter-railway claims which are written off, being time barred under
conference regulations, need not be included in this Annexure.
(ii) The amounts due from but foregone in the case of types of ticketless travellers
indicated in Railway Board's No.28-Appn./44-45 dated 19
th
May 1949 should be
included in this Annexure.
(iii) The figures of refunds of earnings such as wharfage and demurrage (other than
overcharges) should be included in the Annexure.
258
(iv) As soon as the Annexure is available it should be scrutinised to see whether there is
any tendency on the part of the Railway Administration to waive recovery of
wharfage and demurrage charges without due care or proper justification resulting in
heavy remissions of such charges particularly in respect of big firms. If there are any
such cases, suitable comments or draft paras should be prepared and intimated to the
Comptroller and Auditor General of India(Railway Wing) for mention in the Railway
Audit Report.
The following points should be borne in mind while scrutinising the
consolidated Annexure:
(i) The figure of 'total earnings' shown in the Annexure tallies with the figure of 'Gross
earnings' for the year shown in the statement showing the Gross receipts for March
accompanying the Revenue Account Current for March.
(ii) The figure shown in the column 'Total outstanding wharfage and demurrage' agrees
with the one arrived at by adding the figures of demurrage and wharfage accrued
during the year with the outstanding at the end of the previous year and deducting
therefrom the sum total of the amounts of wharfage and demurrage recovered, waived
and refunded during the year.
(iii) In the case of individual items of remissions and abandonment of claims to revenue
amounting to Rs.25,000/- each or more included in the Annexure, complete details
bringing out their salient features and containing, inter-alia, the following points,
should be given in a self-contained note on each case:
(a) An explanation of the transaction etc.
(b) A description of the nature and magnitude of the irregularity, loss etc.
(c) Any extenuating circumstances that may exist.
(d) Any defects in system which led to the irregularity.
(e) The remedial or preventive measures adopted.
(f) The adequacy of those measures.
(g) Brief particulars of disciplinary action taken or reasons due to which
disciplinary action could not be taken, though the circumstances warranted
such action; and
(h) Dates to be given, where necessary. If individual responsibility cannot be
fixed in the cases of losses of financial irregularities, the reasons for the same.
(Railway Board's letter No.14.App./52-53 dated 27
th
May, 1954 forwarded
under Director of Railway Audit's endorsement No.RI-69/52 dated 9
th
June, 1954).
(iv) In the case of remissions of wharfage and demurrage amounting to Rs.25,000 each or
more but less than Rs.1,00,000, only the particulars of invoices, stations between
which booked and the amount involved will be indicated in the statement appended to
the Annexure. As regards cases amounting to Rs.1,00,000 each or more, complete
particulars of each of the cases should be given in a brief note to be appended to the
report.
259
While forwarding the final copy of the Annexure to the Comptroller and
Auditor General of India(Railway Wing), reference to the previous correspondence in the
case of any of the items included in the Annexure, which have already been reported to the
Comptroller and Auditor General of India(Railway Wing) separately, should be mentioned in
the covering letter. For this purpose, the various Branches/Sections/Divisions should furnish
the information to the Headquarters Books and Budget Section while forwarding the audited
copies of the details relating to their Units.
839. Annexure 'D': Review of Expenditure on Important Open Line Works and New
Constructions: This will be compiled in three parts in the proforma F 433(9) Annexure XIX.
The consolidated Annexure will be checked with the audited copies of the Statements
received from the various units.
The following points should be borne in mind in checking the Annexures:
(i) Part I of the Annexure should include works costing Rs.50 lakhs and over, not only
started during the course of the year, but also thrown forward from the earlier years, if
budget provision therefor, was not made at any stage during the year.
(ii) In Part I, brief reasons for undertaking the work without provision should be
explained in the remarks column against each work.
(iii) In Part I the Annexure is split into two parts as below: (Authority: AUB/HC/II/1/186
dt.13.02.92)
(a) Works costing Rs.50 lakhs and over undertaken without budget provision.
(b) Works costing Rs.50 lakhs and over of previous years on which expenditure
was booked during the year without budget provision.
(iv) Works involving expenditure upto Rupees ten thousand during the year to which the
accounts relate need not, however, be included in this Annexure.
(v) In the remarks column of the Part II of the Annexure, the reasons for not undertaking
the work during the year may be given against each work.
(vi) In Part III of the Annexure, the criterion for inclusion of the work is the physical
completion of the work and not the preparation and sanction of its completion report.
(vii) In the remarks column of the Part III of the Annexure, brief reasons for the variation
in the final cost over the original estimate in respect of each of the works should be
given.
(Authority: (i) Railway Board's letter No.61-ACI/17/6 Pt. Dated 6
th

January,1962 received under Comptroller and Auditor General of India(Railway Wing)'s
endorsement No.83.RRI-23/61 dated 6.1.1962.
(ii) Railway Board's letter No.61-ACI/17/5 Pt.dated 27
th
March, 1962 received
under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.380-
R.R.I./52/61(W.Rly.) dated 10
th
April, 1962.
(iii) Railway Board's letter No.64-App./47/63-64 dated 27.2.1965).
260
840. Annexure 'G' - Block Account, Capital Statement (comprising loan account)
Balance Sheet and Profit and Loss Account:(a) Profit and Loss Account: The Profit and
Loss Account of the Railway will be compiled in the form prescribed in Para 431 F.1 Annex
IV by the Financial Adviser and Chief Accounts Officer's office.
The figures for the previous year to be shown in the statement will be taken
from the final copy of the Account for the previous year. In respect of the figures relating to
the current year, the documents with which they will be verified are indicated below:
Sl.
No.
Item Particulars of documents etc.
Debit Side:
1. Working Expenses Sum total of the net expenditure under the revenue
grants No. 4 to 11-A (both inclusive but excluding
suspense) taken from the Schedule of Revenue
Expenditure accompanying the Revenue Account
Current for March or alternatively the sum total of
balances as on 31st March shown in the Consolidated
Revenue Ledger under 'Working Expenses',
'Appropriation to Depreciation Reserve Fund' and
'Appropriation to Pension Fund'.
261

2. Payment to Worked
Lines
Schedule of Transactions under Indian Railways -
Commercial lines - Payment to worked lines
accompanying the Revenue Account Current for
March or Consolidated Revenue Ledger for March.
3. Land and Subsidy Schedule accompanying the Revenue Account Current
for March.
4. Surveys Schedule of transactions under other miscellaneous
expenditure accompanying the Revenue Account
Current for March.
5. Statutory Audit including
Pensionary charges of
Railway Audit Staff
6. Miscellaneous
Establishments
7. Miscellaneous charges
8. Open Line works
Revenue
Schedule of expenditure accompanying the Account
Current for March or the Consolidated Revenue
Ledger for March.
9. Dividend payable to
General Revenues
Statement of Dividend payable to General Revenues
enclosed to the Account Current, which is audited and
sent to the Comptroller and Auditor General of
India(Railway Wing) separately.
10. Government Inspections The figures to be shown 'Proforma' in the Profit and
Loss Accounts of individual Railways will be advised
by the Financial Adviser and Chief Accounts Officer,
Northern Railway to the other Railways. The
correctness of the figures so advised will be verified
by the Principal Director of Audit/Northern Railway
and advised to the Principal Directors of Audit of
other Railways.
11. (A) Cost of Railway,
Railway Board,
Miscellaneous
Establishments,
under them, Office
of the Principal
Directors of
Railway Audit etc.
(B) Payment in lieu of
Tax on Railway
Passenger fares.

The figures to be shown 'Proforma' in the Profit and
Loss Accounts of individual Railways will be advised
to all the Railways by the Railway Board. An audited
copy of the Railway Board's letter conveying the
above information will be forwarded by the
Comptroller and Auditor General of India(Railway
Wing) to all Principal Directors of Audit.

262
Credit Side:

1. Gross earnings Consolidated Revenue Ledger or statement showing
the gross receipts for March accompanying the
Revenue Account Current.
2. Miscellaneous receipts Consolidated 'Revenue Ledger' or Schedule showing
the details of transactions under the head 'Railway
Miscellaneous Receipts for March' accompanying the
Account Current for March.

In the case of Dividend payable to General Revenues, the Railway Board will
advise the figures of the 'Capital - at Charge' and 'Dividend' in respect of each Railway that
have been adopted in the books of the Railway Board, after the close of the accounts for the
year. In case there is any difference between the figures of 'Dividend' advised by the
Administration and that adopted by the Railway Board, only the figure advised by the
Railway Board should be exhibited in the Profit and Loss Account.
In the case of cost of Railway Board, Government Inspection etc. if audited
copy of the Railway letter advising the figure is not forthcoming from the Comptroller and
Auditor General of India(Railway Wing) at the time of finalisation of the statement, it would
be sufficient if the Comptroller and Auditor General of India is apprised of the fact while
forwarding the final statement incorporating the figure advised by the Railway Board.
(b) Block Account:: The Block Account will be compiled in Form F 429. The figures to be
shown in column 2 thereof will be the same as those shown in column 11 of the statement
relating to the previous year. The figures to be shown in column 3 will be those appearing in
the schedules accompanying the Capital Account Current for Open Line and Construction for
the month of March. As regards columns 4 to 9, the same should be arrived at from the
details furnished by the local Audit Offices in regard to the various accounting units. The
figures of transfers without financial adjustments effected during the year to be shown in
column 10 will be taken from the statements of transfers without financial adjustments
appended to the Account Current for March, with reference to the audited details received
from the several Branches/Divisions/Units, as described elsewhere in another connection.
Particulars of misclassifications, if any, affecting the Block Account will be
furnished in the foot-notes to the Block Account.
(c) Capital Statement: The Capital statement will be prepared in two parts in the forms laid
down in Para F 431. The figures of 'non-specific debt' as on 31st March of the year
appearing on the liabilities side of Part I of the statement will be arrived at as follows:
To the figure to end of the previous year will be added the net outlay during
the year under the major head 'Construction of Indian Railways - Commercial' (Open Line
and New Construction) as appearing in the relevant Schedules of the Capital Account Current
for March in respect of Open Line and New Constructions and the amount of transfers
without financial adjustments affecting the corresponding heads of account effected in the
Capital books of the Railway.
The figure of Capital expenditure after purchase appearing on the assets side
of the Part I of the statement will be worked out as follows:
263
To the figure of Capital expenditure after purchase as on 31st March of the
previous year will be added the Capital Outlay during the year under the final heads (both
Open Line and New Construction) as shown in the Schedules accompanying the Capital
Account Current for March in respect of Open Line and New Construction and the transfers
without financial adjustments affecting the corresponding final heads of account effected
during the year. From the total thus arrived at, the figure of 'Receipts on Capital Account' for
the year will be deducted.
The figures as on 31st March of the year in respect of "Stores" "Balances in
Manufacture Accounts" and "Miscellaneous Advances" will be taken from the figures
appearing in the month of March in the consolidated Capital ledger.
The figures as on 31st March of the year in respect of Assets financed from
Depreciation Reserve Fund, Development Fund and Open Line works Revenue will be
arrived at as follows:
To the figure as on 31st March of the previous year will be added the figure
appearing in the relevant column viz., Depreciation Reserve Fund, Development Fund, Open
Line Works Revenue, against the corresponding head of account in the Block Account and
transfers without financial adjustment, if any, affecting that head of account.
The total of the figures on 31st March of the year against Assets financed from
Depreciation Reserve Fund, Development Fund, and Open Line Works Revenue thus arrived
at will be carried over to the liabilities side against the appropriate item.
It should be ensured that the grand total of Part II of the statement agrees with
the total figure appearing in column of the Block Account against the item 'Total'.
(d) Balance Sheet: The Balance Sheet will be compiled in Form F 431(A) Annex III. The
figures shown in the statement will be verified with those appearing in the consolidated
ledgers, capital and revenue or the final Account Current for the year. It should be ensured
that the balances shown in the Balance Sheet agree with those shown in the Debt Head
Report for the year, which is certified by this office separately.
After finalisation of the Block Account, Capital statements and Balance Sheet,
fair copies of the same duly signed by the General Manager will be forwarded by the
Financial Adviser and Chief Accounts Officer for recording the audit certificate on the
Balance Sheet under the signature of the Principal Director of Audit. After recording the
Audit Certificate, copies of the documents will be forwarded to the Railway
Board/Comptroller and Auditor General of India(Railway Wing) by the Administration/this
office in the usual manner.
841. Annexure H - Statement of Losses etc.: The statement will be compiled in the Form F
433(12) Annex.XXII. The consolidated statement will be checked with the audited details
furnished by the various Sections/Divisions/Branches in respect of the corresponding
Accounting Unit(s),which will be consolidated by the Headquarters Books and Budget Audit
Section for the purpose.
In scrutinising the statement, the following points may be taken into account:
(i) Cases of infructuous expenditure should be included in the Annexure.
264
(Authority Para 3(a) of Railway Board's letter No.62-App/61-62/62 dated 26
th

June 1962 received under Comptroller and Auditor General of India(Railway Wing)'s
endorsement No.527-RRI-23/62 dated Nil)
(ii) In the case of individual items of losses/infructuous expenditure amounting to
Rs.50,000 each or more, complete details bringing out their salient features and the
following points should be furnished in respect of each such case:
(a) an explanation of the transaction etc.
(b) a description of the nature and magnitude of the irregularity/loss etc.
(c) any extenuating circumstances that may exist;
(d) any defect in system which led to the irrregularity;
(e) the remedial or preventive measures adopted;
(f) the adequacy of those measures;
(g) brief particulars of disciplinary action taken or reasons for which disciplinary
action could not be taken, though the circumstances warranted such action;
(h) dates to be given where necessary; and
(i) if individual responsibility cannot be fixed in the case of losses of financial
irregularities, the reasons for the same.
(Authority: Railway Board's letter No.14-App/52-53 dated 27
th
May 1954
forwarding under Director of Audit's endorsement No.RI-69/52 dated 9
th
June 1954).
(iii) Items of losses etc. written off in a year should be included in the Annexure of that
year irrespective of whether or not it has been charged off in the accounts of that year.
Cases of losses which have been written off in a year but which have not been
charged off in the accounts of that year, for other than genuine reasons should be
treated as an error in accounting and included in the Annexure 'J ' to the Appropriation
Accounts of the same year.
(Authority: Railway Board's letter No. 14-App/55-56 dated 29
th
December,
1956 addressed to the General Manager and Chief Engineer/Ganga Bridge Project,
forwarded under Comptroller and Auditor General of India(Railway Wing)'s endorsement
No.RRI-26-56 (Misc.) dated 24
th
January 1957.)
(iv) The items of losses on account of floods, fire, accidents etc. shown in the above
Annexure should be reconciled with those shown in the General Manager's Annual
(Narrative) Report for that year so as to ensure that all items of losses required to be
included in the statement are correctly exhibited therein.
(Comptroller and Auditor General of India(Railway Wing)'s letter No.337-
RRI-75/61 dated 26
th
March, 1962).
(v) While in Annual Report(Narrative) only estimated amounts are shown, the amount of
expenditure actually booked in the accounts of the year in the case of losses on
account of accidents, breaches etc. are shown in the above annexure.
(vi) In the case of losses amounting to Rs.25,000/- each or more, due to floods, fire
accidents etc. though no details as referred to in item (ii) above are necessary, yet
each case has to be mentioned separately in the Annexure.
265
(Railway Board's letter No.14-App./57-58 dated 28
th
October, 1958 forwarded
under Comptroller and Auditor General of India(Railway's endorsement No.595-RRI-75/58
dated 7
th
November 1958).
(vii) In the above Annexure, in the details under Grant No.9, Payments of Compensation
Claims arising out of major accidents as defined in Railway Accidents
(Compensation) Rules, 1950, should also be exhibited as under:
"Compensation claims paid in respect of ____________ accident."
(Railway Board's letter No.14-App./55-56/Pt.dated 1st July 1957 received
under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.RRI-
26/56(A) dated 18
th
July 1957).
While forwarding the final copy of the Annexure to the Comptroller and
Auditor General of India(Railway Wing), references to the previous correspondence, in the
case of any of the items included in the Annexure, which have already been reported to the
Comptroller and Auditor General of India(Railway Wing) separately, should be mentioned in
the covering letter. For this purpose, the various auditing units should furnish the information
to the Books and Budget Headquarters Audit Section while forwarding the audited copies of
the details relating to their Unit.
842. Annexure 'I' - Statement of Irregular Re-appropriation: This will be compiled in
Form F 433(13). The following re-appropriations are not within the competence of the
Railway Administration.
(a) Civil Grants: Re-appropriation of funds from one primary unit of appropriation to another
in the case of the grant relating to 'Interest on debt and other obligations etc.'
(b) Railway Grants:
(i) Re-appropriation of funds from one sub-head to another in Grant No.2 Railways -
Miscellaneous Expenditure.
(ii) No re-appropriation is permissible between the 'Voted' and 'Charged' allotments or
between the allotments made under one grant and another.
(iii) Re-appropriation of funds from and to the provision for "Payments to other Railways"
and "Suspense" in Grant No.9 and 12.
(iv) Re-appropriation from and to provision for "Suspense" and "subsidy on grainshops"
in Grant No.12.
(v) Re-appropriation to and from lumpsum provision for works costing not more than
Rs.50,000 each.
(vi) Re-appropriation to and from the provision for track renewals.
(vii) Re-appropriation to and from the heads "Labour Welfare Works" and "Other Works"
in Grant No.16 Open Line Works Revenue.
(viii) Re-appropriation
(a) to and from "Track Renewals"
(b) to and from provision for Development Fund expenditure, and
(c) to and from the provision under detailed heads "Passenger and other Railway
Users Amenities" and "Labour Welfare" under Development Fund in Grant
266
No.16 - Open Line Works - Capital, Depreciation Reserve Fund and
Development Fund.
Further, in case provision in respect of any of the sub-heads of grants are
specified by the Railway Board, while advising the final allotment in respect of each of the
grants, re-appropriation to and from the provision for those sub-heads are also not within the
powers of the Railway Administration.
843. Annexure 'J' - Statement of Misclassifications and other Mistakes: This will be
compiled in the Form F 433(14) Annexure XXIV. The details for inclusion in this Annexure
will be gathered from the audited statements relating to the several accounting units received
from the local Audit Offices and from the explanation furnished in the final copies of
Appropriation Accounts of the several grants. When the Appropriation Accounts of the
Grants are accepted in audit pending the finalisation of this Annexure 'J ', a watch should be
kept over the despatch of suitable amendments to the Appropriation Accounts of the affected
grants, after the finalisation of Annexure 'J ', so as to give a cross reference to the items in
Annexure 'J ', wherever necessary.
It should be seen that the particulars given for the items included in this
Annexure are complete, illuminating and informative. The actual nature of the errors and the
reasons for which the same could not be rectified before the close of the year should be
brought out.
This Annexure will be accompanied by a statement comparing the number of
items included in the Annexure 'J ' relating to the year with those for the previous year and
furnishing the reasons for the variation.
844. Annual Statement of 'Voted' and 'Charged' Expenditure: This statement should be
compiled in the following form prescribed in Railway Board's letter No.57-AC-I/17/10 dated
20
th
August, 1957.
(Units of Rupees)
Major Figures as Figures as per Appropriation
Head appearing in Grants Accounts
the Account -------------------------------------------
Current Gross Credits or
Expenditure recoveries
1. 2. 3. 4. 5.

The figures to be filled in the columns 4 and 5 are from the consolidated
statements showing the actuals by sub-heads of grants prepared from the details of actuals
forwarded by the Divisions/Units.
This will be accompanied by a statement showing the credits or recoveries
excluded from the scope of the demand for grants. The details for the purpose will be
furnished by the several Accounts Officers to the Financial Adviser and Chief Accounts
Officer which would be verified by the local Audit Officers and forwarded to Books and
Budget Headquarters Section. The following details should be given as foot-notes in the
statement of 'Voted' and 'Charged' Expenditure.
(i) Details of expenditure under the major head 'Other Miscellaneous Expenditure'.
267
(ii) Details of expenditure by minor heads of account under 'Capital Outlay on Indian
Railways - Commercial Lines'.
(iii) Details of expenditure relating to motor car advances, advances for the purchase of
other conveyances etc. under the major head "P-Loans and Advances by the Central
Government - Advances to Central Government servants" relating to Railway
Recruitment Board, Secunderabad and the Principal Director of Audit.
The following points should be borne which mind in scrutinising the
statement.
(1) The figures relating to 'Charged' expenditure in respect of each of the Major Heads of
Account are shown separately.
(2) While working out the gross figures of suspense under Grant No.9 for exhibition in
the above statement, the 'net' figure relating to the suspense head "Demands Payable"
will be included under the column "Gross", as the credits relating to the Suspense
Head "Demand Payable" are not treated as falling outside the scope of the demand.
268
845. Statement showing changes in Form and Classification of Accounts: This will be
compiled in the following form:
Sl.No. Reference to authority Particulars

The details will be verified with reference to:
(a) the Railway Board's letters available in the section files issuing correction slips to
Finance Code and Accounts Code.
(b) Particulars noted in the Register maintained for noting such changes in the Section;
and
(c) the audited material from the various Accounting units received from the local Audit
Officers.
The changes introduced by the Railway Administration themselves for
purpose of achieving uniformity in all the units of the Railway i.e. changes of local interest
only, will be listed out separately and incorporated as a separate section in the above
memorandum.
After finalisation of the above memorandum, copies will be made out and
circulated to all Sections/Units.
It should be ensured that whenever such changes in classification are given as
reasons for variation, there are per contra explanations under both the affected grants/sub-
heads.
While forwarding the final copy to the Comptroller and Auditor General of
India(Railway Wing), another statement showing the reference to the Railway Board's letters
quoted as authority for the changes incorporated in the final copy and the references to the
Comptroller and Auditor General of India's letters communicating the advice of audit in
respect of those letters in juxtaposition should be sent.
(Comptroller and Auditor General of India(Railway Wing)'s letter No.2132-
RRI/21/65 dated 16
th
July 1965).
846. Statements of Stores and Stock Adjustment Account: These will be compiled in the
Forms F 433(5) Annexure XI. The statements will be got checked by the Stores Headquarters
Audit Section. The instructions contained in Para F 437 to F 439 are to be followed in
compilation of the statements.
The following points should also be borne in mind while scrutinising the
statements:-
(i) This will include transactions of the Grainshops, if any.
(ii) The value of stores issued on sale account should be included in column 15 of the
proforma.
269
(iii) The value of 'scrap' and 'surplus' stores shown in statement agrees with the
corresponding figures shown in the statement of stores transactions compiled in Form
S.3001.
(iv) The percentage of net surplus or deficiency in the Stock Adjustment Account should
be worked out with reference to the figure of 'Issued' during the year, as shown in
column 14 of Stores Accounts exclusive of issues of stock of grains (Railway Board's
letters No. 45-AC.I/136 dated 6
th
September 1945 and No.30-App/47-48 dated
14.8.1950).
(Note: The column 14 referred to above refers to the column 14 of the then existing proforma
before amendment by the Railway Board's letter of 25
th
April, 1963 referred to earlier).
(v) As losses occurring in Grainshops as a result of Stock Verification and revaluation of
Stores are adjusted to the final head direct, such transactions should not pass through
Stock Adjustment Account - (Railway Board's letter No.30-App./1945-46 dated 10
th

March 1947).
(vi) The figures in the stores account appended to the Appropriation Accounts should
agree with the figures in the annual statement of stores transactions.
847. Statement showing Percentage of working expenses to earnings: This will be
compiled in accordance with the instructions contained in Para F 434. This statement will be
scrutinised by the Books and Budget Headquarters Audit Section. Usually, it is necessary to
verify this statement with reference to material furnished by Books Section of Financial
Adviser and Chief Accounts Officer's Office for the General Manager's Narrative Report as
the appropriation of all the grants would not have been finalised by the time this return is
sent.
848. Statement of credits to capital for retired assets: This will be compiled in the
following form in terms of the instructions contained in Para F 436. While the figures will
be furnished in thousands of rupees in the consolidated statement submitted to the Railway
Board, the Divisions/Units will, however, indicate the figures in Rupees and Paise in the
statement relating to their units. The consolidated statement will be checked with reference
to the audited details received from the various Auditing Sections/Divisions in respect of
their portion.
849. (i) Profit and Loss Account of Catering Department; and (ii) Profit and Loss
Account of Grainshops: These will be compiled by the Expenditure Section of the Accounts
Office and forwarded by that section direct to the Railway Board. These will be scrutinised
by the Expenditure Headquarters Audit Section and the final copies thereof will be forwarded
direct to the Comptroller and Auditor General of India(Railway Wing) by that Section.
850. Statement of Suspense Balances: This will be compiled in Form 433(5) D. The
consolidated statement will be checked by the Books and Budget Headquarters Audit Section
with reference to the audited copies of the Statements relating to the various units received
from the respective Audit Officers.
The following points should be borne in mind while scrutinising the
statements:
(i) In the consolidated statement, the figures need be exhibited in thousands of rupees
only instead of in units of rupees. This change has been effected commencing from
the Appropriation Accounts for 1961-62.
270
(Para 3(c) of Railway Board's letter No.62-App/62-61-62 dated 26
th
received
under Comptroller and Auditor General of India(Railway Wing)'s endorsement No.527-RRI-
23/62 dated Nil.).
The various units should, however, furnish the figures in units of rupees.
(ii) The net balances under the suspense heads (i.e. the net effect of the credits and debits
in respect of each of the Suspense Heads) shown as outstanding on the 31st March of
the year should agree with the figures appearing in the General Books of the
respective Units.
(iii) The details of debits and credits relating to the period "earlier than the previous year"
are furnished along with the statement.
(iv) The clearances effected during the current year, are only those effected upto the close
of the accounts of J uly of the current financial year. At the time of certifying the
statement, it should be seen that the reconciliation of the balances under the several
suspense heads, as appearing in the subsidiary registers with the General Books, has
been completed upto the close of J uly Account.
851. Statement of ex-gratia payments to be shown as foot-notes to the Appropriation
Accounts: In this statement only the items of ex-gratia payments exceeding Rs.50,000/- will
be included. The consolidated statement will be checked with reference to the audited copies
of the statements relating to the various units received from the respective Audit Officers.
The details shown in the statement will be verified with reference to the
manuscript register maintained by the Sections of the Accounts Office, for this purpose.
(Reference: Railway Board's letter No.58-ACI/17/15 dated 16.10.1958
received under Comptroller and Auditor General of India(Railway Wing) endorsement
No.571-RRI-53/57 dated 29
th
October,1958 and Para F 426).
271
852. Statement of Defects in Budgeting: This will be compiled in two parts, I and II. The
form in which these statements are compiled is furnished below.
Sl. Grant/Grants Brief Amount
No. affected particulars involved

The amount will be shown in thousands of rupees in the statements.
The items for inclusion in these statements will be gathered from the
explanations furnished in the final copies of the Appropriation Accounts of the several grants
as well as the audited statements received from the local Audit Offices/Sections. When
Appropriation Accounts are accepted in Audit, pending the finalisation of this Statement of
Defects in Budgeting, a watch should be kept over the despatch of amendments to the
Appropriation Accounts of affected grants after statement of Defects in Budgeting is drawn
up so as to give a (or cross) reference to this statement in the explanations for variations
under the grants.
These statements will be accompanied by another proforma comparing the
number of items included in these statements relating to the year with those of the previous
year, along with reasons for variations.
853. Note on Control over Expenditure: As soon as the Appropriation Accounts of the
various grants are finalised, a note in the Control Over Expenditure should be compiled from
the material furnished by the various local Audit Officers and forwarded to the Financial
Adviser and Chief Accounts Officer for remarks of the Railway Administration.
Simultaneously, a copy of the note should be forwarded to the Comptroller and Auditor
General of India(Railway Wing). In selecting material for inclusion in the above note, the
following instructions should be borne in mind.
(1) The report should be submitted to the Comptroller and Auditor General of
India in time, so that it may be included in Chapter I of the Railway Audit Report, if
considered necessary. In case any delay in the submission of the Report is anticipated,
advance copies of the reports may be sent to the Comptroller and Auditor General of India
and further comments on the items, if any, may be communicated as soon as they are
available.
(2) Instances of excesses over voted grants and charged appropriations, instances
of inadequate or injudicious surrenders obtaining on individual Railways need not be
commented upon in the above report unless they bring out any special feature of budgetary or
accounting importance (e.g., cases mentioned in Para 14, 15 and 16 of the Railway Audit
Report, 1960) as the Railway Audit Report comments only on the grant as a whole, taking
into account the position on all Railways.
(3) Cases of Defective Budgeting, misclassifications and comments, which have
already been forwarded to the Comptroller and Auditor General of India, along with the
Appropriation Accounts of the grants concerned, need not be reproduced in the note on
Control Over Expenditure, as the cases already reported are considered by the Comptroller
and Auditor Generals Office separately. In short, these notes may be confined to important
cases of defective control over expenditure, cases of non-observance of or deviations from
272
the existing rules or orders, non-preparation or defective preparation of financial review,
defective maintenance of accounts registers by the Railway Administration etc.
(4) The statements comparing the items of misclassification and defective
budgeting with those of the previous year may also be excluded from those notes and sent to
the Office of the Comptroller and Auditor General of India separately along with the final
copies of Annexure J and statement of Defect in Budgeting so that they may be considered
before finalising consolidated Annexure J and Annexure B to Railway Boards review by
the Comptroller and Auditor Generals Office.
On receipt of the remarks of the Administration, further observations of this
Office on those remarks should be forwarded to the Comptroller and Auditor General of
India(Railway Wing) along with a copy of the remarks of the Railway Administration.
854. Audit Certificate: After the finalisation and issue of the final copies of all the accounts
of Grants, Annexures and Statements, the Audit Certificate in the Form laid down in Para 8
of the Railway Audit Manual (IVth Edition) will be forwarded to the Comptroller and Auditor
General of India(Railway Wing), duly signed by the Principal Director of Audit.

***********

Ch.IX - Page 1 of 20
266
CHAPTER - IX
WORKSHOP AUDIT
901. The Workshop Audit Section at Lallaguda is responsible for the audit of the accounts
of Mechanical, Electrical Engineering and Signal and Telecommunications Workshops. The
Workshop Audit Section, Lallaguda, also functions as the Workshop Headquarters Audit
Section for coordinating workshop audit work, audit of sanctions etc. The Workshop Audit
Section, Hubli, is responsible for the audit of the accounts of Mechanical Workshop
including electrical portion. Wagon Repair Workshop Audit Section, Guntupalli and Carriage
Repair Shop Audit Section, Tirupati, are responsible for the audit of the accounts of Wagon
Repair Workshop, Guntupalli and Carriage Repair Shop, Tirupati.
The Dy. CAG has nominated this office as Centre of Specialisation relating to
Workshop activities and the W&S Audit Office/LGD is nominated for the purpose to work as
a Special Cell with Sr. Audit Officer / WRS / GTPL as co-ordinating officer. (POO No. 157
of 19.04.2006)
1. To identify specific issues relating to Workshop activities after studying trends.
2. To study the functioning of the Railway in these sectors and identify high-risk areas.
3. To collect and set up Database pertaining to these areas for use by all other offices.
4. Circulation of interesting points noticed to all Railway Audit Offices, who will be
using this office as referral point on the issues relating to Workshop activities.
The Workshop Audit Sections are also responsible for the following:
The audit of the expenditure incurred by the Mechanical Department for the
procurement of rolling stock, machinery and plant and on the maintenance and repair
work thereof.
The audit of establishment charges and provident fund accounts of the staff of the
Accounts, Mechanical, Electrical and Stores Departments, which are dealt with in the
establishment branch of the Workshop Accounts Office.
Notes: 1. Provident Fund Accounts of Gazetted Officers and Cadre Registers are maintained in the
Financial Adviser and Chief Accounts Officers office.
2. The Annual Rent Return account of Residential buildings is prepared by the respective Divisional
Accounts Officers. Workshop Accounts Officers furnish particulars of recovery of rent to the
Divisional Accounts Officers in respect of quarters of the divisions occupied by the staff under
their accounts control.
Local inspection of Workshops
Audit of Dead Stock Account, Passes and P.T.Os, Imprest Cash Account, Stamp
and Stationery Account of Workshop Accounts Office.
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Audit of items of work falling under Central Audit programme relating to the
workshops such as audit of establishment charges, Provident Fund Accounts, audit of General
and Subsidiary Books maintained by the Workshop Accounts Officers is conducted in
accordance with the instructions applicable to Central Audit.
(Paras 3.16.1 to 3.16.4 Manual of Standing Orders(Audit)
and Chapter XVIII - Railway Audit Manual)
902. Audit of Sanctions:: Sanctions dealt within the workshop Audit Section will generally
relate to additions and alterations to rolling stock holdings, condemnation of rolling stock,
sale/hire of rolling stock etc. The instructions relating to audit of sanctions contained in
Chapters on Establishment Audit and Expenditure Audit will apply mutatis mutandis to
the sanctions received in this section. During the audit of sanctions for premature
condemnation of carriages and wagons, it should be seen that a statement showing the
comparative study of the cost of replacement of the assets and reconditioning the same in
terms of paras 240 and 241 of Finance Code Vol. I is invariably submitted with a view to
finding out whether the asset is beyond economic repair or can be used after reconditioning
or that the services done by the assets are no longer necessary. In respect of sanctions for the
sale of goods and coaching stock, it should be seen that the entries in respect of
condemnation and replacement in the statements prepared by the Mechanical Department
have been checked and certified by the Accounts Officer on the basis of history cards and
other relevant records. The sale register maintained by the Workshop Accounts Officer
should also be referred to.
(Paras 7, 128, 129 and 242 - Railway Audit Manual)
903. Audit of Estimates: The estimates should be scrutnised in accordance with the
provisions of paras 1433-W to 1440-W to the extent prescribed in Secret Memorandum of
Instructions. It should be seen that provision has been made for the requisite on-cost as laid
down in Para 1425-W. In the case of works for other Railways and Government
Departments, formal acceptance of the estimate and estimated cost by the Officers ordering
the work should be obtained before the work is put in hand (Para 1418-W).
(Para 322, 323 - Railway Audit Manual)
904. Audit of Completion Reports: Completion reports should be audited to the extent
prescribed in the programme of audit. The correctness of apportionment of charges between
Capital, Depreciation Reserve Fund, Revenue etc., the adjustment of freight and other
charges, the credits for released materials and the credits for surplus stores on hand should be
specially verified. While auditing the completion reports for vehicles constructed for other
Government Departments, it should be seen that the capital cost is correctly entered in the
register maintained for the purpose of calculating the half yearly interest recoverable from the
department concerned.
(Para 324 - Railway Audit Manual and Paras 1468-1474-W)
905. Stores Bills and Contractors Bills: Stores bills dealt within the Workshop Accounts
Office will generally relate to supplies made directly to the Workshop. The scope of audit of
these will be the same as indicated in the chapter on Stores Audit. In regard to the stores bills
received in support of the debits raised by other accounting units, it should be seen that the
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debits raised against the Workshops are correct. During the audit of bills for timber
purchases, the points mentioned in Para 341 - Railway Audit Manual should be borne in
mind.
906. Audit of Incentive Bonus and Piece Work Bills
Direct Workers: The programme currently run on the computer for the printing of incentive
bonus bills, provides for showing the number of cards, time taken, time saved, total time lost,
bonus loss for each ticket number. As the job cards and squad cards continue to be the basic
documents even after computerisation, an intermediate printout showing the details of job
cards relating to a particular ticket number, time allowed, time taken, time saved, total time
allowed, total time taken and total time saved should be obtained and the job cards traced into
the statement as far as direct workers are concerned. Thus, this statement should be
comprehensive and should contain the details of quantity to pay, set up time, proceeding time
and allowed time and audit scrutiny may be restricted merely to the agreement of entries in
the statement with the information on the job card, the extent of arithmetical check on the
accuracy of calculations being reduced to 50 per cent of the transactions selected for audit.
The entries in the job cards relating to the Allowed Time (viz., set up time allowed,
operation time etc.) should be checked with reference to the scroll sheet maintained in the
Production Department. It should be ensured that the scroll sheet itself is not computer
printed and if so the particulars should be checked with other relevant records e.g., rate fixers
records etc.
(Paras 327 & 328 Railway Audit Manual) and
(P.O.O. No.46 dated 30.12.1972).
907. Essentially Indirect Workers
(a) As regards indirect workers and supervisors, the section-wise performance statement
shows the total time allowed, total time taken, details of jobs and workers in the section. To
verify the details of time saved in each section, intermediate print out showing the ticket-wise
details of time saved in each section in respect of the unit selected should be obtained and
checked with the job card statement and from these the percentage of Bonus payable to
Indirect Workers verified.
The checking of arithmetical calculations in respect of standard hours and average
percentage earned by direct workers may be limited to 50 per cent of the cases selected for
audit.
As per check of deductions made in the bonus payable to indirect workers on the basis
of idle time booked against direct workers under their control even now, the check has to be
made with reference to idle time cards. During this check the computer generated idle time
statement should also be checked with reference to idle time cards.
(b) The audit of incentive bills both for direct and indirect workers should be supplemented
by a periodical review of the action taken on error statement s produced on the computer as
indicated below:
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+ The reconciliation statement printed in respect of direct workers should be
checked once a quarter to see that errors have been correctly rectified particularly in
respect of losses.
+ The action taken on the statement of cards printed in the processing of essential
indirect workers incentive bills which show cases of essential indirect workers not
prima facie employed in the incentive sections should be reviewed every month.
+ Similarly, the statement GA Hours reconciliationDetails for un-reconciled
ticket numbers should be reviewed and the correctness of action taken thereon
should be test checked in audit.
(c) The statement of abnormal profits and losses which shows all cases of profits exceeding
50 per cent and all cases of losses should be reviewed for the year to see that remedial action
is taken to revise the allowed time.
(P.O.O. No.46 dated 30.12.1972).
908. Bonus Bills for Maistries: Maistries are eligible for 100 per cent piecework profit on
the basis of average percentage of net profit earned by the direct workers supervised by them.
The list of maistries attached to each section of a shop and entitled to piecework profit is
supplied by the Works Manager to the Accounts Office. This list should be referred to while
checking the bills. Other checks laid down in regard to essential indirect workers will apply
for the audit of bills of maistries.
909. Bonus Bills for Chargemen: Chargemen are eligible for 80 per cent of the average
percentage of net profit earned by the direct workers supervised by them. The list of
chargemen entitled to piecework profit is also supplied by the Works Manager to the
Accounts Office. The check prescribed for the indirect workers will apply in the case of
bonus bills of chargemen also.
While checking the bills of Maistries and Chargemen, the following points should
also be borne in mind:
That proper adjustment has been made for the idle time of direct workers for lack
of work or tools as per the scale laid down.
That proper adjustment has been made in the bills of chargemen for bad castings
due to defective supervision as per statement compiled by each section of the shop.
That total attendance agrees with the gate attendance card.
Correctness of hourly rate should also be checked.
The following reviews should be conducted annually:
@ Cases of abnormal profits above 50 per cent or losses furnished by the Accounts
Office to the Works Manager to see that proper investigation is made.
@ Cases of rejections in the castings of the foundries.
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@ Review of Managerial statements and other statements on the working of the
scheme and narrative reports.
@ Assessment of the increase in production as a result of incentive scheme and
comparison of costs.
A test check of the allowed time and revisions made therein and reasons therefor
should be carried out in the Works Managers office during inspections. A study of allowed
time for the same operation in the different Workshops of the Railway may also be
undertaken to the extent comparison can be made.
During shop inspections, the arrangements in force for punching of cards, custody of
cards, segregation of out-turn of incentive workers from that of others, reasons for idle time
etc., may be examined.
910. Booking of overtime incentive and non-incentive sections of the workshop: Railway
Board has banned the booking of over time in incentive sections of Workshops. They have
also instructed the Railway Administration that booking of over time in non-incentive
sections should be rigidly controlled and sanctioned under the personal instructions of the
Works Manager concerned. It should be seen during the audit of Labour Pay Sheets and bills
for over time allowance that no over time is booked in incentive sections, and in other
sections, over time is rigidly controlled.
911. Muster Rolls, Labour Pay Sheets and time sheets: In Workshops, where time clocks
are in use, gate attendance cards take the place of muster roll. From the gate attendance
cards, labour pay sheets showing the name, ticket number and other particulars of each
workman and deductions to be made are compiled in respect of the number of hours worked,
gross and net wages and over time earned during the month.
The total hours shown in the gate attendance card in respect of each workman should
agree with those shown in the time sheets which contain the particulars of work orders in
which the workman was actually engaged. It should also be seen that all periods of leave
with pay and paid holidays are correctly accounted for in the Time Sheets. Investigation into
the differences in the amount of wages for each workman as drawn and as distributed among
the work orders is not necessary. If the differences continue to be abnormal in any particular
shop, it should be seen that complete investigation into the difference is undertaken by the
Accounts Officer.
Gate Attendance Card should be examined with reference to gate passes, absentee
statements, overtime requisitions, on line sheets etc. Particulars of leave recorded in the gate
attendance card should be verified with reference to the leave statement submitted to the
Accounts Office. Points to be seen during the audit of Labour Pay Sheets as given in the
chapter on Establishment Audit equally apply to the audit of Labour Pay Sheets of
Workshops also.
(Para 326 - Railway Audit Manual)
912. Works Registers and Revenue Allocation Registers: The postings in the Works
Registers and Revenue Allocation Registers are made from the out turn statement. While
reviewing these registers, the instructions contained in Paras 272 and 273 of Railway Audit
Manual should be borne in mind. All aspects should be covered in the yearly review. Purely
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arithmetical checks may be dispensed with except where the Registers are maintained in an
unsatisfactory manner. Random test check of arithmetical accuracy should, however, be
undertaken.
913. Miscellaneous Advances and Deposit Miscellaneous Registers: The instructions
contained in paras 371 and 372 of the Railway Audit Manual should be applied while
reviewing these registers. Instructions for maintenance of these suspense registers, their
reconciliation with General Books and review of suspense balances are contained in Paras
316 to 322-A, 610-A, 614-A, 615-A and 619-A.
914. Workshop Manufacture Suspense Account : All the transactions relating to the
manufacture/repair works undertaken in the Railway Workshops are accounted for initially
through the Workshop Manufacture Suspense Account. The debit to the Workshop
Manufacture Suspense Account will comprise the wages paid to the Workshop labour, cost of
stores utilised on works and freight charges etc. The credit will represent the estimated cost
of the out turn of the Workshop during the month. The balance under the Workshop
Manufacture Suspense Account will represent the total amount expended on completed jobs
for which debits have been raised but are awaiting acceptance and also the amount expanded
on works in progress. The balance under Workshop Manufacture Suspense Account as
appearing in the General Books is reconciled with the balance in Workshop General Register.
The balances under the Workshop Manufacture Suspense Account should be
reviewed to see -
[ that all the items are correct and have been undertaken after the issue of proper
work orders;
[ that the balance consists of nothing except labour, material and works-on-cost
charges expended on unfinished jobs or completed jobs awaiting adjustments;
[ that there are no credit items;
[ that in the case of jobs undertaken for outsiders, estimates are prepared taking
into account the percentage charges required under rules and deposits have been
obtained wherever due;
[ that adjustments of over-charges and under-charges under on-cost and
manufacture are made periodically;
The review of the balances under Workshop Manufacture Suspense Account
should be linked with the review of the Workshop General Register.
(Para 345 - Railway Audit Manual and Chapter XII-W)
(P.O.O. No.57 of 31.1.1972).
915. Labour Sub-Ledger: The audit should be conducted with reference to Tally Sheets,
Time Sheets and job cards selected. The labour sub-ledger printed by the computer is a
summary statement giving for each work order, series of work orders and shop, the costing
hours, incentive amount costing amount and overheads. As the check of these statements
with Time/Tally sheets will only ensure the correct calculation of time spent under different
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work orders and will not ensure the correct value (in terms of money value) of the time spent,
an intermediate print-out, giving the worker-wise (Ticket-wise) details leading to the total
labour charges on a particular work order should be obtained from the Administration. The
purpose of this, therefore, is to facilitate the linking of the relevant entries with reference to
time sheets and checking that the time spent has been correctly evaluated on the ruling
average rate, and in addition that the overheads have been correctly levied. However, as the
Time/Tally sheets do not give the proceeding time, the check will not be complete and so in
the case of incentive sections, the entries in the intermediate printouts should be linked with
the J ob cards also. The totals for a work order shown in the printout should be traced into the
labour tabulations. As the intermediate printout is required to be obtained, selection of the
month of audit should be advanced.
The statement of details of labour charges gives details of work order in respect of
labour charges which are prima facie misclassified in regard to the work order. This
statement should be scrutinised in audit every month with a view to examining the reasons
for misclassification and the action taken to rectify it.
(Chapter V W and P.O.O. No.46 dated 30.12.1972)
916. Stores Sub-ledgers: The check of the stores vouchers is confined to the month selected
for the check of labour sub-ledger. The machine summaries of debits and credits showing the
stores charges voucher-wise and shop-wise in respect of each work order are received
monthly and this takes the place of stores sub-ledger. The vouchers selected should be traced
into the machine summaries. The arithmetical check of valuation of stores vouchers need be
made only in 50 per cent of the cases while checking the stores sub-ledger.
(Chapter VI-W)
917. Workshop General Register: The extent of check is General Review annually. The
Workshop General Register is printed monthly by the comptuer. As this does not show the
month of origin of booking but indicates the charges on labour, stores and on cost, work order
wise for the month only as against one consolidated document showing the progressive totals
from month to month, no general review in regard to the trend of booking of expenditure
against the particular work order is possible. As such, the postings in the out-turn statements
and Workshop General Register should be mutually agreed and the general review should be
done along with review of Workshop Manufacture Suspense Balances. Further, the review of
outstanding should be supplemented by a review of the statement called Monthly Review of
Workshop General Register file and statement called Review of Credit and Irregular
Workshop Manufacture Suspense Balances.
Para 345 - Railway Audit Manual and paras 1201, 1218 to 1220-W
and (P.O.O. No.46 dated 30.12.1972
918. On Cost: Items of expenditure incurred in common with more than one shop or all the
shops of the Workshop are charged to general on cost. Items of expenditure incurred in any
one particular shop are charged to shop on-cost.
Shop and General on-cost expenditure is collected under sufficient number of
standing work orders separately for labour and materials. A share of these charges is added
to the prime cost at a predetermined percentage on direct labour. For this purpose, shop and
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general on-cost budgets are prepared before the start of the financial year, on the basis of the
figures of on-cost expenditure actually booked during the 12 months from J anuary to
December. The percentages are then worked out in relation to the total direct labour,
separately for labour on-cost and stores on-cost.
Para 336 - Railway Audit Manual and Chapter VII-W
919. Calculation of On-Cost: It should be seen that only such items of expenditure that
cannot be directly charged to any specific job are allocated to on-cost. The actual
expenditure on the basis of which the percentages are worked out may be checked with
reference to the initial documents like labour pay sheets of indirect labour. The percentage
of shop on-cost charges for each shop month by month may also be reviewed and any
abnormal fluctuations investigated. While checking the figures of the shop and general on
cost charges, the following points should also be looked into top see that:
[ the percentages are reviewed regularly and reasons for substantial increase or
decrease investigated;
[ all items of expenditure as detailed in the Mechanical Code have been taken into
account;
[ the wages of store khalasis engaged in handling, stacking, loading and unloading
are allocated to general charges and
[ credits for packing cases returned to stores are taken under general charges.
920. Proforma On-cost: Percentage charges on account of proforma on-cost are leviable on
capital works and on works executed for other Railways, other Government Department,
railway employees and private bodies as laid down in Para 1425-W.
921. Distribution of On-cost Charges: After all the sub-ledgers are posted in the Workshop
General Register, the works on-cost charges (both labour and material) in respect of each of
the work orders will be calculated on the direct labour charges, booked against each work
order, at the percentage rates for labour and material in force for each shop and posted in the
appropriate column of the register. The total works oncost charged to various work orders at
the percentage will be booked as credits under the on-cost work order. The difference
between the debits and credits under the on-cost work orders is adjusted against the final
heads of account for over and under charges on-cost.
The calculation made for the month in arriving at the amount of on-cost to be added to
the expenditure on each work order should be checked. The postings in the register
maintained by the Accounts Office to collect the actual on-cost charges and the adjustment of
the over and under charges on-cost to Abstracts C and D should also be checked
annually.
922. Out-turn Statements: The out-turn statement is prepared in the manner indicated in
Para 1211-W. The total debits for the month in respect of each work order under labour,
stores and on-cost charges and the grand total are struck in the Workshop General Register
and the out-turn statement in Form W-1204 prepared in two parts, Part I comprising items
referred to in Para 1207-W and Part II those covered by Para 1210-W except deposit works.
Expenditure on deposit works is included in Part I. The Workshop out-turn statement is
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verified with the figures in the General Books. The postings in the out-turn statement of the
charges for the month against each work order should be compared with those in the check
sheets.
In the audit of the out-turn statement, it should be seen that the adjustment of outlay is
effected promptly by transfer of the amounts to divisions, other departments and other
Railways concerned or by adjustment of the amounts to the relative final heads of accounts as
the case may be. The unadjusted items of expenditure should be scrutinised to see that there
] are no minus balances and no outlay on jobs prior to issue of work orders;
] are no completed jobs outstanding for more than three months and
] outlay on works for which no estimates have been sanctioned is held under
objection. The accuracy of the compilation of the Workshop General Register should
be checked during the check of this item.
Para 346 - Railway Audit Manual
923. Workshop Account Current : An Account Current of all the transactions pertaining to
Workshop Manufacture Suspense Account for each Workshop is prepared in Form 1215-W.
This account will show the total debits and credits to the Workshop Manufacture Suspense
Account under the heads provided in Form W-1215 and the opening and closing balances.
Instructions for the posting of the debit and credit sides of the Workshop Account Current are
given in Para 1216-W.
J ournal entries of all Capital and Revenue transactions affecting Workshop
Manufacture Suspense Account are prepared monthly from the Account Current for
incorporation in the General Books of the Railway in accordance with the instruction
contained in Para 1217-W.
Workshop Account Current should be audited on the lines indicated in Para 347 of
RAM. Besides, the review of the balances under Workshop Manufacture Suspense Account
should be linked with the review of the Workshop General Register.
While checking the Account Current, in addition to the checks prescribed above, the
labour schedule should be subjected to detailed check with reference to labour sub-ledgers for
indirect work orders.
Para 347 Railway Audit Manual, Para 1215-W
924. Reconciliation of Monthly Account of Stores with sub-ledgers: The instructions in
regard to the reconciliation of the total amount of debits in the stores sub-ledger with the
figures shown in the departmental summaries should be strictly observed. It should also be
ensured that the pairing of Issued Notes with the priced copies is done. When the stores copy
of the voucher is not received with the departmental summaries, the pairing of the Foremans
copy with the entry in the departmental summary should be done.
The total debit and credit to Workshop Manufacture Suspense Account indicated in
the Stores Account Current should be reconciled with the total of the respective sub-ledgers.
Detailed instructions for the reconciliation are contained in Para 605, 606 and 619.W. It
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should be seen whether the reconciliation is being done properly and differences, if any,
adjusted. It should also be checked whether the pairing of issue notes received from the
shops with those received with the daily summaries from the Stores Accounts Office is being
done.
Para 330 and 331 - Railway Audit Manual
925. Transfer Statements or Mema: Transfer statement mema are prepared when cost of
stores initially debited to a work order is transferred to the debit of another work order. Such
adjustments are summarised in a separate Stores sub-ledger vide Para 623-W. Transfer
Statements should be scrutinised during the audit of out-turn statement and Account Current.
The following points should be seen during the scrutiny of transfer statements:
g the explanation furnished for the transfer is reasonable;
g sanction of the competent authority has been obtained for the work to which the
cost of stores is debited;
g transfer statement has been signed by a Gazetted Officer;
g the stores can really be used on the work to which its cost is transferred;
g allocation is correct and
g debit and credit are correctly posted under the relevant work orders.
Transfer statements of labour charges should also be similarly scrutinised.
Para 349 - Railway Audit Manual and Paras 623, 624-W
926. Advice Notes of Returned Stores: It should be seen that the total value of the returned
stores as summarised in the credit Stores sub-ledgers agrees with the Monthly Abstract of
Receipts received from the Stores Accounts Office.
Para 331 - Railway Audit Manual and Para 619-W
927. Accounts, Numericals or otherwise of Stores received into Workshop and charged
off to work orders but not actually used thereon : It will suffice if a yearly review is
undertaken of the procedure followed in the Workshops for the accounting of charged off and
surplus stores lying unutilised in the different shops. It should be seen that stores charged off
to work orders do not remain unused for a long time. The reasons for delay in utilisation or
in returning the surplus stores should be investigated.
Instructions issued by the Railway Board to the Railway Administrations regarding
tightening of Accountal Procedure in Workshops vide Railway Boards letter
No.67/M(W)/964/71 dated 3.9.1968 (see Annexure to this chapter) may also be referred to.
928. Accounts of Materials Spare from Work Orders : It should be seen that proper
accounts are maintained of materials and old parts and fittings removed from condemned
rolling stock and machinery broken up or sold in auction. Old parts and fittings released
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from rolling stock and machinery repaired or reconditioned should also be properly
accounted for.
929. Accounts, Custody and Disposal of Scrap Material
Instructions contained in Para 316 of the Railway Audit Manual should be followed while
auditing these accounts. When scrap is disposed off by sale by the Stores Department
directly from the Workshops, the method of accounting and the arrangements for the removal
of scrap by the purchasers may be specially examined.
930. Recovery of non-ferrous turnings/borings from shop floor
In order to ensure that the railways do not suffer avoidable losses on account of short
collection of borings and turnings, detailed instructions have been issued by the Railway
Board to the Railways for tightening the arrangements for the collection of non-ferrous
turnings and borings, vide their letter No.69/M(W)/964/103 dated 31.1.1970. The Railway
Board have also laid down that the Headquarters Office of each railway should obtain from
all workshops a quarterly statement showing the percentage of recovery of non-ferrous
borings/turnings. In cases where the recovery is low, the matter is required to be promptly
investigated by the Railway Administration. It should be seen that the detailed instructions
laid down by the Railway Board are followed for the recovery and disposal of non-ferrous
turnings and borings. The items referred to in Paras 928 to 931 will be scrutinised yearly
during the inspection of shops.
931. Records of Rolling Stock: The Rolling Stock Registers are maintained in the Chief
Mechanical Engineers Office. This will give the full history of each item of Rolling Stock
viz., locos, carriages and wagons. These records are audited in the light of instructions
contained in Para 351 of Railway Audit Manual. It should be seen that the records of
Rolling Stock furnish all the details required for the preparation of the various statements
mentioned in Chapter XV-W. The records should be checked to see that they are up-to-date
and show all additions and condemnations and the results of the latest census of the stock.
It should also be seen that all sanctions of the Railway Board and the General
Manager for condemnations, additions and replacement of Rolling Stock are duly posted in
the records of Rolling Stock. Additions and deletions of Goods stock may also be checked
with the entries in the Monthly Statement of Additions and Alterations of Goods Stock
submitted to the Railway Board.
932. Review of Major Works undertaken in Workshops: Review of major works costing
Rs. 1 crore should also be undertaken by the Workshop Audit Section. With the expansion of
the capacity in the Railway Workshops, the manufacture of wagons, coaches, components for
locomotives, cranes and permanent-way materials has also been entrusted to some of the
Workshops, in addition to the normal repairs and overhauling work. Such schemes costing
over Rs.1 crore each should be reviewed on the lines of review of Major works.
Schemes for expansion of workshops for increasing repair and manufacturing
capacity should also be reviewed with reference to the anticipated increase in the out-turn and
the out-turn actually achieved.. When new machinery is installed on a large scale, it may be
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examined whether the anticipated efficiency has been achieved and the surplus staff reduced
from the shop strength.
933. Record of Plant and Equipment: The instructions contained in Para 350 of the
Railway Audit Manual should be borne in mind.
934. Work Orders: The instructions contained in Paras 334 and 335 of the Railway Audit
Manual should be borne in mind.
935. Proforma Capital and Revenue Accounts of Saloons reserved for the exclusive use
of other departments: Instructions contained in Para 355 of Railway Audit Manual should
be borne in mind while reviewing these accounts.
936. Recovery of Interest Charges on the capital cost of Postal Vans: Rules contained in
Paras 1447-W to 1466-W govern the incidence of the cost of postal vehicles or parts of
vehicles provided by the railway to the Postal Department. The Postal Department has to pay
interest on the capital cost of the complete vehicles or parts of vehicles, so long as they
remain in the exclusive use of the Postal Department and have not been formally surrendered.
The capital cost of postal vans for the purpose of recovery of interest will be the all
in-cost as detailed in Para 1424-W. The Capital cost of the postal portion of the non-postal
vehicles will be worked out in proportion to the floor area of the postal portion. The all-in-
cost of special fittings provided for the exclusive use of the Postal Department will be added
to this.
It should be seen that the Register of Bills and other records maintained in the
Accounts Office contain the upto-date list of all postal vehicles with their capital cost. In
case of doubt, the Register of Rolling Stock maintained by the Chief Mechanical Engineer
should be referred to check to correctness of the list of postal vehicles appearing in the
Workshop Accounts Officers records. It should be seen that the bills are correctly issued
half-yearly on the basis of capital cost noted in the records. (Correctness of the capital cost is
verified during the check of completion report).
937. Review of Statistics of Periodical Overhaul and Cost of Unit Repairs Overhauling:
The unit cost statements are compiled by the Workshop Accounts Officer with reference to
the expenditure booked against the standing work orders for repairs of various categories of
rolling stock and the monthly out-turn statement of locos, carriages and wagons (periodical
overhaul and other repairs) prepared by the Chief Workshop Manager. These should be
reviewed on the lines indicated in Para 354 of Railway Audit Manual.
938. Saw Mill Account: Separate work orders are issued for booking the cost of each kind of
timber. Charges which cannot be directly attributed to any particular kind of timber will be
collected under a general work order. The general operating cost thus collected is distributed
on the basis of the cubical contents of out-turn of each kind of timber cut in each month.
The out-turn statements are prepared separately for each kind of timber and submitted
to the Accounts Officer every month. The cubical contents of off-cuts and saw dust will be
ascertained either by weighing the same and by converting the weight into cubical contents or
by any other means. In any case, a definite ratio between the cubical contents and any other
measurements adopted of the off-cuts and saw dust should be fixed. The cubical contents of
off-cuts and saw dust will be ascertained separately and furnished to the Accounts Officer
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along with the out-turn statement, so that the same can be valued and credited to the standing
Work Order.
The debit side of the manufacturing account comprises:
C cost of uncut wood at the end of previous month:
C cost of uncut wood drawn during the month; and
C cutting charges transferred from the operating account.
It is credited with the cost of scantling realised at rates fixed periodically by the
Workshop Accounts Office and of off-cuttings, saw dust and uncut wood at close of the
month.
In checking the Saw Mill Account, it should be seen that:
4 the quantity of timber received agrees with the total quantity shown in the issue
notes,
4 quantities of saw/timber issued to the depots agrees with the Advice Note for
which credit is received from the Stores Accounts Office,
4 the percentage of wastage is within the limit prescribed for each type of timber,
4 the cubical contents of saw dust and off-cuttings have been correctly assessed, and
4 the under/over charges are worked out every month and adjusted to final head of
accounts once every half year.
It should also be generally examined whether the machining wastage (1127-
W) is correctly added to the finished sizes required.
Chapter XI-W and Paras 338 and 341 of Railway Audit Manual
939. Foundry Account: The cost of manufacture of spare parts and rolling stock components
can be ascertained accurately only if the costing of individual parts is commenced from the
stage of rough castings and carried through to that of finished products. For this purpose,
detailed foundry accounts are maintained to ascertain the Cost of rough castings. The
procedure followed in the foundry is briefly indicated below:
Standing Work Order for metal and melting: Suspense Work Orders are operated for
recording the expenditure on metal and melting. These charges will include cost of
p metal;
p fuel including freight;
p limestone and other flux;
p repairing cupolas;
279
p blast and repairs to blast plant;
p repairs to ladle and cupola equipment;
p labour for charging the cupolas and for carriage of raw material, and
p pouring metal into moulds;
Separate standing work orders are operated in the Iron foundry and Brass foundry for
booking the above expenditure.
The following charges are allocated to Foundry Shop on-cost Work Orders.
Cost of repairing moulding boxes and tools.
Cost of drying cores and moulds.
Fuel for and repairs to core oven and appliances.
Cost of procuring and mixing moulding sands and binders.
Miscellaneous stores used generally in the Foundry Shop, and
Cost of defective products when it is not charged to individual jobs.
For certain class of castings that are extremely liable to defects, defective castings are
allocated to the job instead of to on-cost. Credits for non-ferrous borings arising out of
machine operations of foundry items are afforded to the brass foundry and not to the machine
shop on-cost.
Individual work orders are issued for all manufacturing work undertaken in the
foundry. The labour charges for moulding and core making are charged to the individual job
orders. The total charges recorded under standing work orders for the different metals are
distributed over the various jobs undertaken on individual job orders in direct proportion to
the weight of the metal booked against each job during the month.
A monthly statement of out-turn showing the input and output is posted daily from the
daily log and advices of returned stores and submitted to the Accounts Office. The out-turn
statement is checked in the Accounts Office with reference to the issue vouchers accounted
for therein and completed in respect of total cost of the melt for the month, which will be the
total debit for the month. This amount is distributed among the work orders for which
castings have been made during the month in proportion to actual out-turn.
The foundry accounts should be checked on the lines indicated in Para 342 of the
Chapter X of W and Para 342 of Railway Audit Manual
940. Job Costing : The object of job costing is to compare the cost of articles manufactured
in the Workshops
280
+ and finding out reasons for variation in cost and
+ with those manufactured on other Railways or with the market price of similar
articles.
J ob costing will also be held in
- Checking employees to see that they yield full service.
- Ensuring that waste is prevented or minimised.
- Utilising the manufacturing cost figures ascertained as a guide for future
transactions and for the correct allocation of the expenditure incurred.
The essential features of the job costing system is estimating in advance of the time
that should be spent and the materials that should be used and the systematic comparison of
the results of actual performance with such estimates. The institution of any detailed system
of costing is thus contingent upon the initial fixation by suitably trained technical staff of
standards of time and of materials for the items of work to be undertaken and for the prompt
comparison of the standards thus set with the actual results obtained.
In the case of items manufactured in Railway Workshops, the maxima and minima
stocks are fixed taking into consideration the length of time required by the Workshops to
deal with the requisitions placed by the Stores depots. Upon the depots stock of an item
dropping to the level of the minimum a requisition in Form S.1437 is prepared in triplicate,
(vide Para 1437-S) one copy of which is sent to the Workshop Production Department. No
articles may be manufactured in Railway Workshops for stock purposes without a requisition
for such articles being placed by the Stores Department and approved by the Chief Workshop
Manager.
The manufacturing activity is suitably divided into different kinds of job orders, e.g.
Manufacture of loco duplicate, Manufacture of carriage and Wagon duplicate,
Manufacture of Miscellaneous Fittings etc. and each kind of job orders is represented by a
control work order. Separate sub-work orders, under each of the control work orders, are
issued by the Production Control (in the form of Route Cards) for each individual work to be
done and no expenditure should be incurred by the shop until a sub-work order for the work
concerned has been received.
The series of the control work orders are revised after every half year and all cases of
sub-work orders not completed for more than three months after the old series have been
revised, will be listed by the J ob Costing Section and reported to the Chief Workshop
Manager for taking special steps for their completion. Whenever it is decided to take up
manufacture of an article, a Process Sheet is prepared by the planner. This is the basic record
of manufacture of any article. The Process Sheet will indicate details of the operations
required to manufacture the article in their sequence. Against each operation, the operation
number, the shop number and the section in which the operation is to be done and the code of
the machine will be indicated. After check by the processing section, the Process Sheet is
forwarded to the Rate Fixing Section. The rate-fixers fill-in the necessary information
regarding preparatory allowance and allowed time.
281
The Adrema section embosses the adrema plates from the Process Sheet for
subsequent printing of factory forms. The Process Sheet is then filed in the Planning Office.
Whenever any change in the process of manufacture is decided, it is noted on the relevant
Process Sheet indicating the authority and the reasons for the change.
The Production Office of the Workshop and the Accounts Office will use the
following forms for the implementation of the costing system:
Route Card: This is the authority for the Workshop to undertake any work of manufacture.
The Route Card is issued for each economic batch and carry all relevant particulars. When
the article is finally finished and sent to the Stores, the Route Card will be sent to the costing
section through the Progress Office.
Job Cards/Squad Cards: These are the production documents embodying the particulars of
different categories of labour booked to the particular work order. On completion of each
operation, these are sent to the costing section (through the incentive bonus section).
Proceeding Time Statements: This is used when a job taken up during the month is carried
forward to the next month. This should be prepared for both jobs in progress as well as jobs
that are suspended.
Cost Sheet: The cost sheet covers the whole field of record of productive activity. The entire
process of a production order in the way of consumption of material and the charging of
labour and on-cost is reflected in the cost sheet. The cost of each job is ascertained through
the cost sheet which will be opened by the Production Control at the time of issuing
production documents like route cards, material requisition etc. The monthly expenditure on
labour/materials and on-cost and also the credit received from the Stores Department for the
scrap and manufactured articles returned to Stores Department are posted for each month by
each shop. As soon as the sub-work order is completed and the completed route cards are
received in the costing section, the total expenditure incurred from the commencement of the
job to the completion will be totaled up and the unit cost of manufacture worked out. The
unit rate should be approved by the Workshop Accounts Officer and posted in the relevant
cost cards.
Cost of manufacture in respect of each of the workshop manufactured stock item
should be worked out in the first instance and the rates thus determined, should be notified in
replacement of the existing rates. After this, job costing of each workshop manufactured
stock item should, as a rule, be done only once a year, subject to the exceptions specified
below:
: Cost of manufacture should be worked out on each and every occasion in respect
of such of the workshop manufactured items as are extremely liable to defects.
: Cost of manufacture should be worked out every time the method of manufacture
is changed.
Material Requisition: This is used for drawing material from the Stores and after
acknowledgement by the shop foreman is sent to the Stores. After posting the numerical
ledger, this is sent to the Accounts Office.
282
Debit Transfer Sheets: In case any material drawn for a particular work order is transferred
to another work order, a debit transfer sheet is prepared and sent to the Accounts Office for
carrying out necessary adjustments.
Waster Sheet: This is used for accounting the rejected items due to defect in the raw
materials etc.
Returned Stores Note: This is used for returning the manufactured materials to Stores.
Cost Card (W-9440): This is used for recording the unit cost arrived at on repeated
manufacture of the same material. The estimated cost with details of labour and material are
also indicated on this card.
The cost sheets and the connected documents should be scrutinized to see that:
Labour charges have been booked by the shops required to perform operations as
mentioned in the route cards.
Material charges, wherever necessary, have been booked by the shop processing
the first operation. Adjustment for the off-cuts or scrap, wherever utilized, has been
made where required.
Labour and material charges have not been booked by shops not mentioned in the
route cards.
The quantity passed by the Inspector in the final operation has been acknowledged
by the Stores Depot by suitable endorsement on the route card and that necessary
credit for the manufactured articles supplied to the Stores Department has been
afforded by the Stores Accounts Office.
There are no discrepancies between the number of articles actually completed and
sent to stores and that for which charges have been booked on the sub-work order and
that the weight of raw material obtained for the sub-work order is not out of
proportion to the weight of the articles sent to Stores.
Abnormal wastages are valued and credit afforded to the work order by debiting
the on-cost.
Abnormal rejections of more than 5 per cent to the total number ordered is
investigated and remedial measures taken.
A cost variation register is maintained for recording marked variations and a
statement of marked variation is sent to the Chief Workshop Manager.
Chapter IX-W and Para 337 of Railway Audit Manual
941. Cost Accounts and Job Cost Sheets: The scope of check is a General Review to see
that the correct principles are followed and that the calculations of on-cost is made correctly.
A detailed check of the correctness of the cost to the prescribed extent of the cost sheets
should be done. The existing instructions should be strictly followed. The prescribed checks
provide for the reconciliation of the total debits booked against all the sub-work orders (under
a main work order) in the cost sheets during the month with those booked at one place, under
the main or control work order in the Workshop General Register (Financial Accounts).
The cost analysis for the Batch Order completed should be reviewed in respect of prescribed
percentage of the completed batches every month and the review should be supplemented by
283
a review of the material analysis statement and shop-wise/series-wise totals for W.M.S. cards.
The comparative statement of Utilisation of Man-Hours for the month prepared manually
should be scrutinized.
Para 337 - Railway Audit Manual and P.O.O. No.46 dated 30.12.1972
942. Review of Contracts: The instructions contained in Paras 606 and 607 of this Manual
should be borne in mind during the review of contracts.
943. Review of Implementation of Contracts: The instructions given in Para 608 of this
Manual should be followed during the review of implementation of contracts.
944. Sales Abstracts and Sales Register: Railways usually sell unserviceable and obsolete
stores and scrap accumulated in Railways which are surplus to their requirement.
Occasionally other items of surplus stores are sold if no alternative use could be found for
them on Railways. Sales usually are effected in the following ways.
1. Auction sales: This is the usual method of sale of scrap, empties etc.,
2. Tender sales,
3. Direct sales to private parties, such as industrial undertakings, by direct negotiations,
4. Direct sale of petty stores such as cinder, scrap, sleepers, etc. to ex-Railway
employees etc.,
5. Sales to other Government Railways, and
6. Sales to other Government Departments.
It should be ensured that no stores which are not obsolete, surplus or scrap are
sold to outsiders.
"Sales" (Suspense) Registers are maintained in Stores Headquarters Accounts
Branch centrally for various categories of sales. The entries are posted from issue notes
received along with "Statement 17-Sales" prepared on computer for each depot. Selection for
audit should be obtained from the Sales Registers/Sales Statements.
During the check of "Sales Abstract", the following points should be seen:
1) The purchase money is paid in advance if the sale is made to outsiders and where no
advance money is paid, the bills are preferred against the parties without delay.
2) For sales other than auction sales, percentage charges have been correctly levied -
vide Para 2328 and 2329-S.
3) Sales have been made under sanction of competent authority (Vide Paras 2304-S to
2312-S).
4) The sale issue notes have been signed by Accounts Stock Verifier witnessing the sale.
5) Where direct sales are made to employees etc. procedure laid down in Paras 2308 to
2311-S should be borne in mind, and
6) Posting is correctly done in Sales Registers.
284
The procedure with regard to sales, whether of surplus or other classes of
stock should be reviewed periodically. Auctioneer's contract, if any, should be reviewed
while reviewing auction sales.
All important cases of sales by direct sales, auction sales etc. should be
reviewed, the related papers in Controller of Stores' Office gone into and any defects in
procedure brought to notice.
During local visit to the Depots, the detailed arrangements for tender or
auction sales and the method of stacking materials into lots for sale should be reviewed. It
should be seen whether materials are removed within the stipulated time and whether
penalties and ground rent are enforced wherever necessary.
945. Auction Sale Account: Generally obsolete and unserviceable stores and scrap only are
sold. Occasionally, however, excess stock of ordinary stores are also sold. The sale should
be by public auction/tenders/direct sale. No materials which are not overstocks, surplus,
obsolete or scrap may be sold by auction or tender.
Before any item of stores can be sold by auction, such action should be
recommended by a Survey Committee and sanction of the competent authority obtained for
the sale. The auction is conducted under the supervision of the Depot Stores Officer and in
the presence of an Accounts representative who should see that the conditions of sale are
being observed. The Depot Officer, the Accounts representative and the auctioner's
representative should sign the bid statements, sale issue notes and the completion report of
auction sale. In addition, the Accounts representative independently submits a statement
called "The Register of Auction Sale Material" indicating particulars of the materials sold,
bid amount, amount deposited, issue note particulars etc. At the end of each auction, the
auctioners will prepare an auction sale account and send it in duplicate through the Depot
Officer to the Controller of Stores, who will countersign one copy and send it to the Accounts
Officer. The auction sale accounts should be received in Accounts Office within a month
from the end of the auction.
The auction sale accounts should be generally scrutinised with reference to the
completion report submitted by the Depot Officer and the Account Stock Verifier, the bid
statement and the Register of Auction Sale Material submitted by the Accounts
representative. It should be examined to see that:
1) the amount realised has been correctly computed according to the bids noted in the
completion report/bid statement and that it agrees with the total remittance made,
2) the amount of auctioner's commission, where deducted is correct,
3) ground rent has been added to the bid amount when the materials are not removed
within the stipulated time,
4) the arithmetical calculations are correct, and
5) the account has been countersigned by the Gazetted Officer of the Stores Department.
285
Detailed check of the sale issue notes to the extent prescribed in respect of
each auction sale should be carried out. The postings of the issue notes in the Sales Register
and corresponding credits should also be verified.
Auction sale account is also reviewed during local inspections as indicated in
Para 438 of Railway Audit Manual.
A complete review of all auction sales may be conducted half yearly in Stores
Headquarters Audit Section, duly keeping a brief record of auctions reviewed.
(Para 2733-S and Para 318 of Railway Audit Manual).
946. Sales of materials other than Auction Sales: All sale sanctions issued by General
Manager/Controller of Stores should be received in Stores Headquarters Audit Section. These
may be audited as General Manager/Controller of Stores's sanctions to the prescribed
percentage. Points, if any, to be investigated at Depot Level may be intimated to Stores Unit
Audit Officers concerned.
(Authority: Para 2332-S)
947. Accounts, Custody and Disposal of Scrap: A large quantity of materials of different
categories which are no longer useful for the purpose for which they were originally procured
accumulates on the Railways. These are generally classified as scrap and consist of turnings,
borings, cut ends of metals, sweepings or released materials. Sometimes second hand or even
new materials are reclassified as scrap when they have become unsuitable for use on the
Railways. This may be due to the stores having become obsolete on account of change in the
designs or due to modernisation of equipment.
Second hand and new materials are classified as scrap on the
recommendations of the Survey Committees, duly accepted by the competent authority.
Disposal of scrap should be as recommended by the Survey Committees.
Cases of reclassification of large quantities and costly items of second hand
and new material into scrap should be specially reviewed with reference to the period and the
circumstances of their procurement.
Detailed schedules of scrap are maintained by the Railway Administration
under "Group-98" of the classification of stores. It should be seen that the scrap is accounted
for under relevant category and disposed off from time to time without allowing
accumulation of huge quantities which may require elaborate and costly stocking
arrangements.
If scrap is to be disposed off by public auction, arrangements are made for its
collection at convenient points for the purpose of such sale. In regard to permanent way
scrap, it should be specially seen that they are collected at such points that may require the
least expenditure on haulage and handling.
(Chapter XXIV-S and Para 316 of Railway Audit Manual)
(Paras 944 to 947 included under this Chapter as per CS No. 13 of 27.11.2005)
286
Annexure (Para 927)
GOVERNMENT OF INDIA
Ministry of Railways
(Railway Board)
New Delhi
No.67/M(W)/964/71 Dated 3.9.1968.
12 Bhadra, 1890.
The General Managers
All India Railways
Sub: Tightening of Accountal procedure in Workshops
.
Enclosed is an extract from the minutes of the meeting of District Controllers of
Stores (Vig.) of Zonal Railways held in the Boards Office on 29.2.1968 and 1.3.1968.
2. The Board have already emphasized from time to time the necessity for proper
accountal of non-ferrous materials. It is presumed that Foundry Accounts for non-ferrous
materials have already been implemented according to the Mechanical Code. This may
please be confirmed. In this connection, you may also please refer to the Boards letter of
even number dated 29.3.1968 dealing with Foundry Accounts.
3. In addition to the Foundry, it is equally important that proper accountal procedure
should be in force in all sections/shops where machining, fitting, etc., of non-ferrous
components is undertaken or where these are stored. In this connection, you are requested to
refer to Para 3320 of the Stores Code. Wherever machining of non-ferrous components is
undertaken, the accounting procedure should cater for reconciliation of the weight of
rough/machined components and the arising of borings.
4. You are requested to confirm that proper accountal procedures of non-ferrous
materials have already been brought into force in the Foundry and other sections/shops where
non-ferrous components are machined/stored.
Sd/-
(R.K.RAY)
Jr.Director, Mech.Engg.(W)Rly.Bd.
DA: As above.
Extract of the Minutes of the meeting of the District Controllers of Stores (Vigilance) of all
Zonal Railways held in the Boards office on 29.2.1968 and 1.3.1968.
287

Para 12-3. Tightening of Accountal Procedure in Workshops: It was pointed out by the
District Controller of Stores (Vigilance) of all Railways that accountal of materials in the
Workshops particularly of material lying in the shop floor was slack and this contributed in a
large measure to thefts and pilferages of materials from Workshops which remain unreported
or undetected. Even though Para 3300-S provides for proper accountal of even charged off
stores in the Workshops, in actual practice, it is observed that such accounts are either not
maintained at all or maintained in a half-hearted manner which does not help in proper fixing
up of the responsibility. The Workshops no doubt have their own difficulties in enforcing the
very rigid system of accounting which may ultimately hamper the manufacture or repair
work, but it was felt that proper accountal of at least non-ferrous materials in raw or
manufactured condition both new and released should be done properly in a ledger (by
weight and Nos.) so that at least the pilferage and misappropriation of this costly material can
be controlled.

Ch.X - Page 1 of 24
286
CHAPTER - X
STORES AUDIT
1001: In Stores Audit, it is required to be seen that departmental regulations governing
purchase, receipt, custody, issue, condemnation, sale, stock taking of stores etc. laid down by
the Railway Board, are observed correctly.
While conducting the audit of Stores Accounts, the instructions contained in
Chapter 4 of Section II and Chapter 7, Section III of Manual of Standing Orders(Audit) and
Chapter III to XI of Stores Code are generally to be borne in mind.
The Stores Audit Branch Offices at Lallaguda, Guntupalli and Tirupati
conduct audit of the accounts maintained by their respective Stores Accounts Offices, in
accordance with the extent and periodicity prescribed under Stores Audit in the "Secret
Memorandum of Instructions - Railway Audit". The Stores Headquarters Section is
responsible for audit of the accounts maintained by Financial Adviser and Chief Accounts
Officer (Stores) including audit of Stores Bills. The Contract Audit Section is responsible for
the audit of all contracts/purchase orders, issued by the Office of the Controller of Stores /
SCR / SC, concluded on this Railway.
1002. Review of Contracts: In order to obtain the best value for the money spent, the tender
system is considered in all cases as one of the most effective methods of securing competitive
rates. Contracts are entered into by the Railway Administration after finalisation of tenders.
Following are amongst the different methods of obtaining tenders:
i) By advertisement(i.e. open tenders),
ii) By direct invitation to a limited number of firms (i.e. limited/bulletin tenders),
and
iii) By invitation to one firm only(i.e. single tender).
While reviewing the contracts, it should be seen that:
1. wide publicity was given to an advertised tender,
2. reasonable time was allowed for submission of tender,
3. a tender Committee was properly constituted, associated with finance and the tender
was duly examined by the committee,
4. necessary earnest money/security deposit was obtained,
5. technical advice wherever necessary was obtained and the financial implications of
alternate specifications of delivery period have been examined,
6. reasons for accepting a rate higher than the lowest have been recorded and are
genuine,
7. acceptance of a tender has been duly communicated to the party within the validity
period of offers,
Ch.X - Page 2 of 24
287
8. acceptance of the tender and execution of necessary agreement have been done, by
competent authority,
9. no contract has been entered into with parties who have been blacklisted, and
10. the quantity ordered is as per genuine requirements with regard to estimate/indents
based on past consumption and stock position.
A record of contracts reviewed should be kept in a register similar to that
prescribed for works contracts (Expenditure Audit), and the register submitted to Principal
Director of Audit quarterly irrespective of results.
(Chapter III to VIII of Stores Code, Chapter VI of Finance Code, Para 299 of
Railway Audit Manual and Para 606 of Expenditure Audit)
1003. Purchase Orders: A Purchase Order is an order placed by the Controller of Stores on
the successful tenderer to supply the required materials to the indentor at specified rates and
conditions already accepted. Details of quantity, consignee, date by which delivery must be
completed etc. are given in this order. The extent of check is as prescribed in the programme
of Audit, in S.M.I.(Railway Audit). The Register of Review of Purchase Orders should be
maintained in the proforma given in Annexure XI.
The following points are to be seen during the check of Purchase Orders:
i) Continuity in number of the purchase orders is observed.
ii) Purchase of stores which are beyond the powers of purchase by the Controller of
Stores have been included in the purchase list sanctioned by General Manager.
iii) Purchase orders do not contain any item of stores which should be purchased through
the Director General of Supplies and Disposals(DGS&D).
iv) There is no unreasonable variation in rate adopted from time to time for the purchase
of the same kind of material.
v) The rates and other particulars are in accordance with the agreement in case where a
contract for supply of material is in force.
vi) Local purchase or purchase through single or limited tender has been resorted to in
emergencies only and the conditions attaching to such purchases have been fulfilled.
vii) No splitting up of purchases has been made to avoid the sanction of higher authorities
or specified conditions.
viii) The financial limit prescribed has not been exceeded.
ix) Necessary earnest money and security deposit, wherever due, have been recovered.
x) The purchase orders have been placed within the period of validity of the offer and
finance concurrence has been obtained, wherever necessary.
xi) There are no erasures, overwritings or unattested alterations in the purchase order.
xii) The purchase order has been signed by a Gazetted Officer of the Stores Department.
The instructions regarding purchase policy contained in Chapter III of Indian
Railway Code for the Stores Department should also be borne in mind with a view to
ensuring that the purchase orders do not infringe the purchase policy.
Ch.X - Page 3 of 24
288
(Authority: Para 299 to 307 of Railway Audit Manual).
1004. Review of Implementation of Contracts: A review of implementation of all purchase
orders/stores contracts as per the prescribed percentage is to be conducted on completion of
delivery of stores. The object of such a review is mainly to know whether the conditions of
contract have been honoured by the party without any dispute, delay or defective supplies,
entailing extra cost or expenditure to the Railway Administration.
A review of implementation of purchase orders relating to stock items shall be
conducted by Stores Headquarters section. For this purpose, the list of completed purchase
orders according to the prescribed monetary value fixed for review is to be obtained from the
Depot Officers concerned (viz., Stores Depots at Mettuguda, Lallaguda, Guntupalli and
Tirupathi) by the respective Audit Officers/Sr.Audit Officers(Workshop and Stores) quarterly
and forwarded to the Audit Officer/Sr.Audit Officers(Stores Headquarters). The Audit
Officer/Sr.Audit Officers(Workshop and Stores) concerned should make permanent standing
arrangements with the Depot Officers concerned to obtain the list regularly during the first
week of J anuary, April, J uly and October in respect of purchase orders completed during the
previous quarter ending December, March, J une and September. These lists should then be
forwarded to Audit Officers/Sr.Audit Officers(Stores Headquarters) to reach him before 15
th

of J anuary, April, J uly and October. From this list, contracts required for review as per the
prescribed percentage should be selected and such contracts reviewed by calling for the files
of Financial Adviser and Chief Accounts Officer(Stores)/Controller of Stores.
As regards non-stock items, the Divisional Audit Officer/Audit Officer
concerned should ascertain from their Accounts counterparts quarterly i.e. in J anuary, April,
J uly and October, the particulars of purchase orders completed during the previous quarter
and make necessary selection for review according to the prescribed percentage. For this
purpose, Divisional Audit Officer/Audit Officer concerned may make permanent standing
arrangements with their Accounts counterparts for supply of lists of completed purchase
orders to audit regularly.
The review should cover all aspects of the contract and it should be
specifically seen whether the objectives for which a contract was entered into were fully
achieved. In this connection, the following aspects may also be seen.
i) The material has been supplied as per specifications, duly inspected by the authorised
inspecting authority in the agreement. Relaxation in specifications, if any, allowed,
has been made after necessary technical concurrence and suitable reduction in rate.
ii) The stores have been delivered within the stipulated period and extension, if any,
granted, has been allowed only after taking into consideration the question of
recovery of liquidated damage. Wherever higher rates were accepted on time-
preference basis, it should be seen that no extension has been granted without finance
concurrence.
iii) Variations in rates or quantity subsequent to the execution of the contract have been
sanctioned by the competent authority.
iv) Claims for damage, shortage etc. have been preferred in time and pursued properly.
Ch.X - Page 4 of 24
289
v) Extra haulage of material has not occurred due to incorrect information regarding
consignee, specifications etc.
vi) Any Government assistance given to the contractor by way of procurement licence for
raw materials etc. has not rendered undue advantage to the supplier.
vii) Final decision of arbitration cases, if any, should be watched.
The register of "Review of implementation of Contracts" should be maintained
in the proforma given in Annexure - II.
At the commencement of every quarter i.e. by 10
th
J anuary, April, J uly and
October, the register of review of implementation of contracts should be submitted to the
Principal Director of Audit by the sections concerned indicating, inter alia, arrears in the
review, reasons therefor, action taken to clear the same etc. Necessary entries should be
made in the Calendar of Returns to watch the implementation of the procedure and time
schedule prescribed.
(P.O.O.No.93 dated 30.7.1986).
The review of implementation of Purchase Orders/Stores Contracts should
also include the agreements entered into by the D.G.S.&.D., Railway Board and Central
Organisation for Modernisation of Workshops(COFMOW) on behalf of the South Central
Railway Administration.
1005. Risk Purchases: In the event of failure on the part of firms to supply the materials
asked for in the purchase order within the stipulated periods, fresh purchases through fresh
purchase orders are made by the Controller of Stores at the risk and cost of the defaulting
firms. In the Accounts Office, the bills relating to risk purchase orders are passed like other
bills. As regards booking of expenditure, the cost at the original contract rate is debited to the
final head of account and the extra expenditure representing the difference between the
revised and the original cost to Miscellaneous Advance(Revenue) as recoverable from the
defaulting firms. For watching recovery of these amounts, a manuscript register called "Risk
Purchase Register" is maintained in the Accounts Office. These registers should be reviewed
half-yearly to ensure that there are no cases outstanding for a long time without recovery.
The correctness of the amounts to be recovered from the defaulting firms should be checked
in detail with reference to the purchase orders to the extent prescribed of the cases entered in
the register. It should also be seen that there is no delay in preferring the claims and that
action taken for recovery of the extra expenditure from the defaulting firms is proper and
adequate.
1006. Audit of Stores Bills: Purchase of stores for the Railway is arranged by Controller of
Stores, either directly or through D.G.S.&.D. Bills for stores purchases for stock by the
Controller of Stores are passed by the Financial Adviser and Chief Accounts Officer. The
audit of these bills will be conducted by Stores Headquarters Audit Section. Bills for non-
stock items chargeable to works pertaining to Revenue, Capital, Development Fund,
Depreciation Reserve Fund and Open Line Works(Revenue) are passed by the unit Accounts
Offices concerned. Audit of these bills is, therefore, done by the respective unit Audit
Offices.
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290
Selection of Stores Bills in respect of purchases for which payments are made
by the Financial Adviser and Chief Accounts Officer is obtained from CO7 Registers. While
checking the bills, the following points are to be looked into.
1. the rate, quantity, terms of delivery and due date of supply agree with the purchase
orders and the accepted tenders.
2. the arithmetical calculations are correct.
3. the receipt of stores has been duly acknowledged.
4. due precautions have been taken to guard against passing of a second claim for the
same supply.
5. the items of stores required to be purchased through the agency of the Ministry of
Works, Housing and Supply in accordance with Para 801-S and the latest instructions
of the Railway Board are not purchased direct, without the sanction of competent
authority.
6. the question of extra expenditure/liquidated damages has been settled in cases of short
delivery or delayed delivery. This aspect should be specifically examined in cases
where higher rates were accepted for earlier delivery i.e. on time preference clause.
7. the postings in Purchase Accounts Register have been correctly made.
8. in case where the suppliers allow a discount in their bills for payment within a
specified date/period, it should be seen that the Railway Administration has availed of
this concession.
Bills for purchases arranged by D.G.S.&.D. are passed by Pay and Accounts
Office and audited by the Principal Director of Audit(C&SM). Selection of these bills for
audit is obtained either from the register maintained in the Accounts Office of bills received
from the supply department or the statement of bills received from the Pay and Accounts
Office. While checking the bills, the following points are to be seen:
i) Debits correctly pertain to the Railway.
ii) The duplicate copies of bills are supported by the appropriate copy of the Inspection
Note containing the Receipt certificate recorded by the consignee.
iii) In the case of stores for stock, relevant credit items are available in the Purchase
Account except for advance payments vide Para 2815-S, and
iv) The calculation of departmental charges claimed by the Pay and Accounts Office in
the bill is correct.
The ISD Bills are sent by the Financial Adviser and Chief Accounts Officer(S)
to unit Accounts Officers concerned for adjustment through ATD. These bills are to be listed
out from the journal entries every month and audited by the unit Audit Officers, in the same
manner as done by Stores Headquarters Audit Section.
Ch.X - Page 6 of 24
291
The tracing of audited stores and ISD bills should be done every month in the
Monthly Transaction Register, Depot numerical cards (Bin cards) and Purchase Statement
made out on the computer, copies of which will be available in the Depot Accounts Offices.
For this purpose, the Stores Headquarters Audit Section will send the particulars of bills
audited to the units concerned for necessary tracing.
During the check of bills, instructions contained in Paras 298 to 307 of
Railway Audit Manual, Section III - Chapter 7 of Manual of Standing Orders(Audit) and
rules contained in Chapters III to XI of Stores Code are also to be borne in mind.
1007. Port charges and Custom duties: For imported consignments, these charges are paid
by the clearing Railways viz., Central, Southern and Eastern. The audit check to be
conducted on this Railway is to see that vouchers in support of the debit towards port charges
and customs duty pertain to this Railway and that they are correctly allocated. This check
will be conducted at the time of check of J ournal Vouchers.
1008. Receipt Returns, Delivery Notes and Priced Ledgers/Transaction Registers: The
detailed instructions regarding revision of Audit procedure consequent on computerisation of
sores given in Para 1033 of this manual may also be borne in mind.
(Paras 311 to 315 and 317 of Railway Audit Manual).
1009. Monthly Stores Account Current: A Monthly Stores Account Current is prepared by
the Stores Accounts Officer(Depot Accounts) and submitted to the Financial Adviser and
Chief Accounts Officer every month. The Account Current will show the opening balance,
debits/credits during the month and the closing balance of all categories of stores. The
statements showing the particulars of the items shown in debit and credit side of this account
prepared in Form S.2938 should also be sent to the Financial Adviser and Chief Accounts
Officer as an accompaniment to the Monthly Account Current. The Account Current
submitted by the various unit Accounts Offices will be consolidated and necessary J ournal
Vouchers prepared to incorporate these transactions in the General Books. These are checked
at Headquarters Audit at the time of check of journal entries. The particulars of the items
shown in debit/credit side of the Account Current by the Depot Accounts are compiled from
the Machine Summaries viz., debit/credit summaries and other relevant statements prepared
as a result of computerisation.
Due to elimination of Priced Ledgers on account of computerisation, the
reconciliation with Class Ledgers will be done with reference to Class Ledger Summaries
prepared on the computer, every month relating to all classes of Stores (groups of stores).
1010. Price Lists: The price lists are not intended for pricing of issues but for supplying
consuming departments with a list of stores in stock showing their correct description and
identifying numbers together with their approximate price.
Pricing of issues is done in accordance with Para 2515S.
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The Price Lists should be kept uptodate by the prompt issue of serially
numbered correction slips.
(Para 208-S and 209-S and Para 323 of Railway Audit Manual).
1011. Price List rates for new stores: Price list rates for new stores purchased, or workshop
manufactured, are fixed in accordance with Para 210-S and Para 1535-S respectively.
1012. Price list for scrap: The price lists should include the rates for scrap also. These rates
are revised as frequently as necessary by the Controller of Stores, in consultation with the
Financial Adviser and Chief Accounts Officer.
In audit, the relevant price lists should be reviewed along with the Priced
Ledgers. It should be seen that the lists are periodically revised and kept uptodate.
1013. Purchase Accounts Registers: In order to record each purchase transaction as it takes
place, Purchase Accounts Registers are maintained in Stores Accounts Office centrally in
form S.2809.
Separate pages should be allotted for each supplier/firm/contractor, showing
the progress of supplies and payments therefor. Receipt notes are received from Depot as an
acknowledgement of stores received. These are shown as debit to Capital-Stores
Suspense/work, as the case may be, and credit to Purchases - Capital. Receipt notes, after
being checked in Accounts Office as per Para 2807-S, are posted on the credit side of
Purchase Accounts Register, indicating the particulars of Receipt Note, Inspection Note,
Railway Receipt, quantity, rate and value thereof as per Purchase Order. When the bill for
the supply of stores is received, the credit thereof available in the Purchase Accounts Register
is checked and endorsed on the bill. In case of advance payments to the suppliers before the
actual receipt of stores, the amount of such payment is posted as debit in the Purchase
Accounts Register. These advance payments are made under special conditions of contract.
Correctness of advance payments should be checked vide Para 2815-S also.
In other cases it should be seen that no bill is passed for payment by debit to
Purchases without a corresponding credit in the Purchase Accounts Register.
The following points should be seen in the review of Purchase Accounts
Register.
1) The postings in the registers are promptly done and no arrears are accumulated.
2) Debit balances for 95% and 98% advance payments should be analysed, items which
are outstanding for over one year should be examined and the matter taken up
specially with the Accounts Office.
3) In respect of advance payments whether there are cases of undue delay in inspection
and accountal of materials by Stores Depots.
4) The balances under Purchase Accounts should be reconciled with General Books.
5) While reviewing the Purchase Accounts Register, it should be seen that any
differences between the Receipt Order amount and bill amount are promptly adjusted.
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293
6) As all freight element in respect of Stores for stock should be debited to Revenue
heads, it should be seen that freight element is not booked to Purchase Account.
Delay in adjusting the amounts should be taken up.
7) It should be seen that 5% and 2% bills are properly linked with 95% and 98% bills
originally passed in Purchase Accounts Register, and
8) It should be seen that Purchase Accounts Registers are reviewed periodically as
provided in Para 2816.S.
1014. Miscellaneous Advances - Capital and Revenue: In terms of Para 2739-S, a register
is maintained to post the issue notes chargeable to Miscellaneous Advances - Capital and
their clearance watched.
Miscellaneous advances - Revenue is also operated in Stores Accounts to
book amounts of excess expenditure on 'Risk Purchases' in terms of Para 2823-S.
It should be seen that proper action is being taken to expedite clearance of
outstanding items and that no item which could prima facie be debited to final head is debited
to Miscellaneous Advances - Capital/Revenue.
Para 381 of Railway Audit Manual may also be seen in this regard.
In all these registers, it should be seen that a systematic reconciliation with
General Books is carried out.
1015. Security Deposit: A security accompanied by a bond, where necessary, shall, except
under general or special orders from the Railway Board, be taken for the due fulfillment of a
contract. The security should be furnished in cash, or in any other form, as prescribed in
Para 449-S.
The Security Deposit Register should be reviewed on the lines indicated in
Para 614-AI and Para 371 of Railway Audit Manual.
(Paras 448-S, 610-AI Chapter XVIII-AI and 381 of Railway Audit Manual).
1016. Funds Register: The funds register is maintained to record the progress of liabilities
incurred against the budget grant under the appropriate heads. The amount of all contracts
entered into by the Railway Administration and indents placed on the DGS&D are noted in
this register. In addition, total amount of cash purchases made is also entered monthly in the
register. The register should be reviewed to see that it is maintained efficiently for the
purpose of watching incurrence of liabilities against budget grants.
(Para 506-S and Para 307 of Railway Audit Manual).
1017. Stock Verification Reports: A review of stock verification reports closed during the
previous half-year should be conducted to the extent prescribed. The selection should be
obtained with reference to the Register of Stock Sheets maintained by the Inspector of Stores
Accounts in terms of Para 3261-S.
Ch.X - Page 9 of 24
294
Stores in the custody of the Depot and other Departmental Officers and
subordinates are verified periodically by the Accounts Department to ensure that the
materials in stock accord with the description and specification shown in the depot ledgers,
the actual balances of such stocks agree with the balances appearing in the books and that
excesses or deficiencies noticed during such verification are properly investigated and
accounted for.
The materials in a Depot, materials at the site of works and stores with imprest
holders and tools and plants are to be verified to the extent prescribed.
Details of verification are recorded by the Stock Verifier, in a field book.
After the actual stock of an item of stores has been ascertained by verification and accepted
by the Ward Keeper, the result of verification is posted in the depot ledgers. From the data
recorded in the field book, stock verification sheets are prepared in triplicate. The duplicate
and triplicate copies of the stock verification sheets are handed over to the subordinate in-
charge for giving explanation for discrepancies noticed. On receipt of the stock sheets with
the explanation of the subordinate incharge through the Controlling Officer, the explanations
are scrutinised by the Inspector of Stores Accounts. If the explanations are unsatisfactory,
Account Notes are issued by the Stores Accounts Officer to the Divisional Officer concerned.
The replies to the Accounts Notes are finally dealt with by the Stock Verification Section in
the Stores Accounts Branch.
The Audit scrutiny of stock sheets will cover results of verification of all kinds
of stock including charged-off stores and permanent way materials in the custody of
Engineers.
It should be seen that stock verification of Stores with depots and subordinates
are conducted periodically as prescribed and stock sheets issued in accordance with Para
3258-S.
It is important that stock sheets are dealt with promptly, as delays in
finalisation of discrepancies may render the investigation into frauds and other irregularities
difficult, due to lapse of time. It should, therefore, be seen, in addition to the points
mentioned in Para 317 of Railway Audit Manual that the number of stock verification sheets
outstanding finalisation and the monetary value of the discrepancies is not unduly large.
During inspection of the depots, it should be seen whether the accuracy of
weigh bridges and other weighing machines is periodically tested by the Executive and
whether a record is maintained of such tests.
(Chapter XXXII-S and Para 327 of Railway Audit Manual).
1018. Stores-in-Transit Register: The Stores-in-Transit Register is maintained for
(i) Depot Transfers and
(ii) Stores-in-Transit - "Purchases".
a) Depot Transfers: When stores issued during a month from a depot are not received in the
receiving depot in the same month, such items appearing in the monthly issue summaries of
issuing depot are accepted and posted in Depot Transfer Registers. When such materials are
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295
received later on, the entries in the depot transfer accounts are cleared by debit to stores, such
items being brought to account in Transactions Register. Reference to the receipt note will be
given against the relevant entry in the register. It should be seen during the review of the
register that action has been taken to clear items outstanding for long by preferring claims on
the Traffic Department or otherwise.
(Para 2746-S)
b) Stores-in-transit "Purchases": All stores taken over by the Railway, but not received in the
stocking depot are accounted for through Stores in Transit - Purchases. All items of credit
to Purchases which are not posted in the priced ledger will find a place in the Stores-in-
Transit-"Purchases" Register. The credits to Purchases Account are posted from the receipt
notes prepared by the Stores Depot.
In cases where inspection and receipt work is centralised, such receipts are
granted by the receiving or inspecting officer. The posting of such receipts will appear in the
Transaction Register (Priced Ledger) only when the material is received by the depot and
accounted for in the Numerical Ledgers. The entry will, therefore, remain in the Stores-in-
Transit Register until the materials are received in the depot. Outstandings will indicate
delay/loss in transit.
The Stores in Transit - "Purchases" Register should be reviewed to see that
adequate action is taken to clear outstanding items. It should be seen that the Stores-in-
Transit Register is reconciled with General Books as indicated in Para 2751-S.
(Para 2748-S)
1019. Stock Adjustment Account Register: Stock Adjustment Account is a subsidiary head
of account under the Minor Head 7100-Stores(Suspense) intended for booking debits and
credits relating to transactions of the under-mentioned nature, which has to be maintained in
the following III parts:-
I. Results of Stock Verification:
P.7181 - Differences between the ledger balances and the ground balances discovered
by the Stock Verifier.
P.7182 - Differences between the ledger balances and ground balances discovered
during Departmental Verification.
II.
P.7183 - Differences arising out of revaluation of stores due to market fluctuation of
purchased stores.
P.7184 - Differences arising out of revaluation of stock due to market fluctuation of
shop manufactured stores.
III. Miscellaneous Items:
P.7185 - Differences in book value and value realised in sales.
P.7186 - Losses on classification of new stores as second hand/scrap
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P.7187 - Other losses, i.e. breakage, leakage or losses in transfer
P.7188 - Rounding off
P.7191 - Miscellaneous items.
P.7192 - Value brought on books through depot stock sheets pending receipt of
voucher.
The postings in the account will be made from the various journal slips
prepared for the different transactions, surpluses and deficiencies being shown separately. A
summary of all the parts is made at the end of every month. The debits and credits to Stock
Adjustment Account will be by contra adjustment to stores except in the case of adjustments
against the Revenue Abstracts in clearance of half yearly balances. A general review of the
Stock Adjustment Account Register should be done. The transactions of the stock adjustment
account will come under scrutiny during the audit of stock sheets and J ournal Vouchers.
During the general review of the register, it should be seen that items are not brought under
Stock Adjustment Account without proper investigation. Large items should be carefully
scrutinised. Items outstanding in March Accounts should be scrutinised to see whether there
are adequate reasons for keeping them under Stock Adjustment Account (Paras 2743 to
2745-S).
In terms of Para 2742-S, all items should be cleared finally in six months.
Action taken by the Administration in terms of Para 2745-S should be reviewed.
1020. Stores Adjustment Sheet: The Stores Adjustment Sheets should be checked with
reference to the Transactions Register. The original postings should be verified wherever
necessary and the justification of the adjustment scrutinised. It should be seen that important
shortages brought to notice during stock verification are fully investigated before the
difference in value due to reclassification of stores into Class II or scrap are adjusted. It
should be seen that Survey Committee has recommended such reclassification or scrapping
and the recommendation has been accepted by competent authority. Papers dealing with the
procurement of such materials and circumstances leading to the materials being rendered
obsolete or unserviceable should be specially scrutinised, wherever the amount adjusted is
heavy.
(Paras 2543 and 2548-S & Para 322 of Railway Audit Manual).
1021. Yearly Statement of Stores Transactions: A statement of actual balances of stores on
hand at the end of each financial year is prepared by the Railway Administration in Form S-
3001 and submitted to the Railway Board by the 1st November of the following year. The
statement is prepared by the Controller of Stores with the assistance of the Accounts Office.
Detailed instructions for preparation of the statement are contained in Chapter XXX of the
Stores Code. The statement should be accompanied by three annexures viz., Annexure A, B
& C.
Annexure A is in the form of a questionnaire which should be answered duly
certified by the Financial Adviser and Chief Accounts Officer.
Annexure B is a review of balances under material-at-site account for the year.
The analysis of Stores balances under this head should be by the following sub-heads.
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1) Completed Works 2) Works in Progress
3) Works not yet started 4) Works not to be done
Annexure C is a statement of balances of 'charged off' imprests comprising the
balance at the end of the year with each category of imprest holder.
The yearly statement of stores transactions should be checked on the lines
indicated in Para 324 of Railway Audit Manual.
The balances under material-at-site account should be checked with the
Material-at-site balances of various works as appearing in the Works Registers to the end of
the year.
1022. Surplus Stores: During the review of Transaction Registers, it is to be ensured that the
stores-in-stock has a regular demand and that the balances compare favourably with the rate
of consumption. In addition, a review of the list of surplus stores/overstocks submitted by the
Depot Officers to the Controller of Stores should be conducted during the local inspection of
Stores Depots. All items of surplus stores should be scrutinised to see whether action as
prescribed in Chapter XXII of the Stores Code was taken before such stores were declared as
surplus.
It should be seen whether lists of surplus stores/overstocks are regularly
forwarded to other Railways. Action taken to reduce the surplus stores/overstocks by sale to
other Railways or otherwise should be examined. A review of the lists of surplus stores
received from other Railways may also be made to see whether surplus stores from the other
Railways are obtained in preference to purchase of similar stores.
Stores Headquarters Section should undertake an yearly review of the progress
reports of the disposal of surplus stores/overstocks submitted by the Controller of Stores to
the Railway Board. Instructions contained in Paras 324 (4) of Railway Audit Manual and 33
of the Secret Memorandum of Instructions may also be borne in mind.
(Chapter XXII-S)
1023. Scrutiny of sanctions to "Quantity" and "Purchase" through Programme Indents
placed on the D.G.S&D: In addition to the scrutiny of indents relating to the contracts
reviewed, as laid down against item 10 of Para 1002 of this manual, the programme indents
for the latest half-year submitted by the Depots for a few classes of stores should be reviewed
during the local inspection of stores depots, to see whether the indents have been correctly
prepared from the initial records. A review of the indents should also be carried out by a
simultaneous review of the stock position in the Stores Depots and the consolidation of the
indents in the Office of the Controller of Stores. For this purpose, the Contract Audit Section
should select prescribed percentage of the bulk indents and after check with reference to
the depot indents intimate the particulars of the depot indents to the Stores Audit Sections
concerned for scrutiny with reference to the depot records. The particulars of the indents
advised by the Contract Audit Section should be noted in the Selection Register and audit
completed by the Stores Audit Sections in the same way as other periodical items.
(Addl. Deputy Comptroller and Auditor General (Railways)'s letter No.831-
RAI/8-9/64, dated 21.3.1967).
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1024. Audit of Accounts for Imprest Stores, Engineering Imprest Stores: Permanent Way
Inspectors have certain permanent way materials in their custody for the purpose of meeting
urgent requirements of maintenance. The cost of such imprest stores is borne on Capital
Suspense. Priced Ledgers for these stores are maintained by the Stores Accounts Officer.
Monthly returns of imprest stores indicating receipts, issues, balances and the quantity
recouped by the Stores Depot are received in the Accounts Office through the Permanent
Way Stores Depot. In the Accounts Office the quantity issued by the Permanent Way
Inspector is posted in the Priced Ledger for the Permanent Way Inspector as issues. The
quantity issued by the depot is posted as issue in the main Priced Ledger, under receipt in the
Priced Ledger for the Permanent Way Inspector. The value of stores issued by Permanent
Way Inspectors are included in the "Stores Summary Issues" against Divisional Engineers
concerned.
It should be seen in audit that the imprest with every subordinate is fixed as
laid down in Para 1409-E and the returns are promptly received, the issues priced, posted in
the Priced Ledgers and included in the summaries correctly. The opening balance should be
checked with the closing balance of the previous month.
NOTE: The permanent way returns are being received by the Divisional Accounts Officers,
through the Divisional Engineers and the Audit thereof is done by the Divisional
Audit Officers.
(Para 290 of Railway Audit Manual & Chapter XIV.E.)
1025. Imprest accounts of other than Engineering Stores: Recoupment schedule of
imprest stores (charged off stores) held by Train Examiners, Loco Foremen etc. are received
in the Stores Depot which issues the imprest stores. No Issue Notes are prepared in respect of
the recoupments of the imprest stores and the recoupment schedule itself serves the purpose
of the issue note. The quantity issued by the depot, as indicated in the recoupment schedule,
is priced and posted in the Transaction Register and one copy of the recoupment schedule is
sent along with the Stores Summary issued to the Departmental Officer. The recoupment
schedule should be checked to see that the object of the imprest system viz., control of
expenditure on materials used each month in the running repairs of the rolling stock is
achieved by ensuring that the stores issued are within the authorised list and quantities. The
correctness of the price list number and nomenclature indicated on the recoupment schedule,
the pricing of the issues, the postings in the Priced Ledgers and the correctness of the
summary should also be checked. The opening balance should be checked with the closing
balance of the previous month. It should also be ensured that the recoupment schedules are
submitted regularly by all the subordinates and the value of stores issued accounted for
promptly.
The accounts submitted by imprest holders should be checked, separate
selection being obtained for Engineering and other than Engineering.
(Chapter XVIII-S)
1026. Review of cases of losses, embezzlement etc.: In terms of Para 9 of Railway Audit
Manual, all serious irregularities should be reported to Comptroller and Auditor General of
India(Rlys) by Principal Director of Audit as soon as they come to notice. As all cases of
losses and embezzlements of cash/stores exceeding Rs.50,000/- in each case are to be
reported. Stores Headquarters Audit Section should keep a separate record of these cases and
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forward a copy of the preliminary report (sent by the Railway Administration to Railway
Board) to Comptroller and Auditor General of India (Rlys) together with comments, if any, as
soon as the report is received of the case. The cases should be individually examined/pursued
to see that adequate action is taken by the Railway Administration to investigate and
regularise the losses. Copies of the enquiry reports may be called for and reviewed in each
case and adequacy of the action taken thereon examined. Final reports may be submitted in
each case to Comptroller and Auditor General of India (Rlys).
As per Para 1102-F, all cases of losses above Rs.25,000/- are being reported
to Railway Board. Stores Headquarters Audit Section should review these cases and satisfy
that adequate action is taken thereon by the Railway Administration.
Separate lists of these cases may be kept in Stores Headquarters Audit Section.
1027. Survey Committee Reports: Copies of the Survey Committees reports are endorsed
to Audit(Stores Headquarters) in terms of Para 2228-S. The orders of the Controller of
Stores/General Manager on the Survey Committee's recommendations should be treated as
Head of Department/General Manager's sanction and audited to the extent prescribed. Copies
of Survey Committee's reports should be forwarded to Audit Officer/Sr.Audit Officer
,Workshop and Stores, Lallaguda, Hubli, Guntupalli and Tirupathy regularly.
1028. Inspection of the work of receiving and despatching sections of the Stores Depots:
The inspection of the work of the receiving and despatching sections of the Stores Depots
should be carried out according to the approved programme.
1029. Revision of audit procedure consequent on computerisation of stores: (1).
Consequent on computerisation of Stores Accounting, Priced Ledgers are now maintained on
the computer. However, in respect of permanent way items, certain Priced Ledgers are
continued to be maintained in Stores Accounts Offices e.g., Permanent Way ledger section
MFT etc.
(2). Railway Stores which were earlier classified under 46 classes, have now been
reclassified into 75 major groups and further sub-divided into various sub-groups under each
group. Out of the 75 groups, 39 groups are common to all the Railways and the balance of 36
groups are pertaining to South Central Railway.
(3). Each Price List number has been codified into an eight digit code of which the
first two digits indicate the main group, next two indicate the sub-group, next three digits
indicate the Serial Number of the item in the group and the last one a check digit. Further,
the following items have also been codified into different numbers.
1. Depots and the wards.
2. Heads of allocation
3. Unit of accountal
4. Consignee code
5. Consignees of Stores etc.
(4). As all accountal entries in statements/vouchers will be made only in coded
numbers, the Railway Administration has published a "Standard Code Book for
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Computerisation" to facilitate easy reference in accounting and checking which may be
referred to while checking returns and vouchers selected for audit.
(5). The vouchers are received in the computer room periodically from the Depot
Accounts Offices. After a preliminary check of code numbers and other details they are
bundled in batches of 50 vouchers, by accounting offices before despatch to EDP for being
punched into cards. The data punched on cards are taken into magnetic tapes, after
verification on verifying machines as to the correctness of punching. The Stores Accounts
staff prepare a control card for each bundle after indicating card code and "Hash Totals" of
the quantity for all the vouchers in the bundle. The total under the quantity columns of each
batch of vouchers in respective units of accountal is called "Hash Total". The quantity "Hash
Total" so developed is to be verified with the total made in computer, to ensure that the
vouchers are not omitted in accountal. After the cards are punched and verified, the
computer develops the following statements which are described in detail in P.O.O.No.4 of
1970 issued by the Financial Adviser and Chief Accounts Officer, South Central Railway,
Secunderabad.
a) Prelisting of vouchers: This is the first print-out taken which shows a list of all vouchers
(receipt notes, and issue notes, adjustment vouchers) together with quantities and values. The
hash totals arrived on computer are checked with those arrived at manually. This is verified
by the Accounts staff with the vouchers to see that P.L.Nos. quantities etc. are correctly given
in cases where error indications are given by computer. This statement itself indicates the
error in hash totals, if any. This statement also helps in ensuring validity check of the
vouchers.
b) Incorrect statement: This is the list of all vouchers which are rejected by the machine for
various reasons, such as P.L.No. not tallied, incorrect unit, balances not available(for issues),
no pre-determined rates for workshop manufactured items etc. This will be checked by the
staff of Stores Accounts Office and corrections made after reference to vouchers, last month
transaction statement, as the case may be. This statement is actually printed after having a
match-run with the opening balance tape.
c) Invalid items statement: Even after rectifying the above said incorrect entries and putting
them in machine, the machine lists out all items rejected by it for reasons such as no balance
for issue unmatched, no same unit, no Pre-Determined.rate. Efforts are made to rectify these
discrepancies also, but if it is not possible to do so in the same month's account, they are put
into next month's accounts after effecting necessary corrections in the depot cards.
d) Transactions Registers: This is a monthly record of all issues/receipts under each P.L. in
that month only those items in which there are any transactions will be recorded. But in the
months of September and March, a complete record of all items including those having no
transactions is taken out showing the opening balance, closing balance, rate etc.
(6). In addition, various other statements such as debit summaries, credit
summaries, sales statements, stock adjustment account P. I, II, III taken out, are given in the
above mentioned P.O.O. which enables the Accounts Office to raise debits, adjust credits,
prepare Stock Adjustment Account, Account Current etc.
(7). However, certain managerial statements (or exception statements) required to
be prepared are not yet being printed out and the work is in process on this Railway. Phase II
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of the computerisation and further elimination of the numerical ledger are also still to be
implemented finally on this Railway.
(8). The instructions detailed below regarding the method of audit of various
statements prepared on the computer may be followed.
I. Arithmetical checks will continue to be carried manually out by audit staff and the
totals developed on computer should be compared and verified completely.
II. Any irregularities noticed should be traced to the various stages of the statements and
the reasons should be ascertained. If any lacuna is noticed in programming etc. this
should be taken up with the E.D.P.M. and his remarks obtained.
III. To check the completeness of accountal according to the extent of audit prescribed, it
may be ensured that all vouchers emanating from the depots are accounted in the
computer. Audit staff should obtain all the forwarding mema of all wards for the
selected date under which the vouchers are received from the depot to Depot
Accounts Office. From these, audit should trace all vouchers entered in the control
card and sent by Depot Accounts Office to E.D.P.M. The Depot Accounts Office is
keeping a register giving the Lot Number(i.e. each batch of about 50 vouchers) and
number of vouchers sent etc. These are sent to E.D.P.M. and his acknowledgement
obtained. This ensures that all vouchers are sent to E.D.P.M. including those
originating in the Accounts Office. Further, these vouchers are listed in the
prelist(edit list) to ensure that all vouchers are taken into consideration for accountal.
As this prelisting is not sent to Depot Accounts Unit, the correctness of the vouchers
of selected date can be ensured only by tracing into the transaction register and invalid
statements. As all the vouchers of the date are traced into transaction register, it can
be easily verified that all the vouchers are accounted except those appearing in the
invalid statement. It should be ensured that the total number of vouchers in the
transaction register plus those in the invalid statement are the same as the number of
vouchers for the day as given in the lot register. Each of the vouchers should be
further traced into the debit/credit statements etc. prepared on computer to ensure that
these are included in the debits/credits raised against the departments for the month.
The hash totals (for quantities) prepared by the Accounts Office on the control
card should be checked and correctness verified. As the invalid statement prepared contains
all the outstanding vouchers not accounted for, it should be reviewed by audit and old items
left unadjusted should be taken up with the Accounts Office. Further, omission/delay to take
action on rejected vouchers or abnormal delays in adjusting them should also be taken up. At
the end of March accounts, normally there should not be any voucher left unadjusted.
To ensure the completeness of the accountal of vouchers, the manual lot totals
should be reconciled with the totals developed on the computer. In addition, the continuity of
vouchers should be checked with reference to the continuity register manually maintained
and continuity statements prepared on the computer.
Receipt Return: According to Stores Audit Item No.SA-II, the following items come under
this category:
a) Returned Stores
b) Workshop manufactured items(out-turn)
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c) Imported Stores
d) Inter Depot Transfers
e) Other receipts
a) Returned Stores: All depots are covered in a year according to the extent of check
prescribed. Computer takes out monthly depot-wise statement of returned stores(0 '8'
statement) showing the voucher-wise details and consignee-wise totals for all returned stores.
This also shows group-wise totals of the returned stores. Selection to the extent required can
be obtained from these statements and the selected vouchers audited as prescribed in Para
301 and 331 of Railway Audit Manual. These vouchers should also be traced into
transactions register and it should be ensured that the rate at which credit is afforded is
reasonable, by reviewing the original vouchers. As the voucher is manually priced, it should
be specifically seen that the calculated value has been correctly worked out as shown in the
statement.
b) Workshop out-turn: Statement No.19 taken out in computer shows the list of all workshop
manufactured items of receipts. Selected vouchers from this also should be traced into the
transactions registers. As the vouchers are priced at pre-determined rates fixed half yearly, it
should be seen that revision of prices is done periodically and that the differences between
the actual rate and the fixed rate are adjusted periodically to "over/undercharges".
c) Imported Stores: The selected vouchers should be checked as per Para 303 of Railway
Audit Manual. The vouchers must be traced into transaction register and also the purchase
statement (No.12). The correctness of the valuation should be checked with reference to
purchase order to ensure that correct percentage charges for customs, freight and port charges
are included.
d) Depot Transfers: Statements are prepared (No.10 and 11) showing depot transfer
receipts/issues. The method of pricing in either case should be checked and also the vouchers
traced into Transaction Register. If receipts and issues are not paired off during the month, it
should be seen that difference is reflected in Stores-in-Transit Register (Depot Transfer).
e) Other Receipts: In addition to the above items which cover majority of receipts in a depot,
occasionally there arise certain other categories of vouchers such as temporary receipt notes,
fabrication receipt notes and non-stock receipt notes which are also to be covered in audit.
Transaction of different dates should be selected for each type of voucher both under
'receipts' and 'issues' category. All vouchers audited should also be traced in the Transaction
Register.
Delivery Notes: Item SA-III of Stores Audit Programme. This consists of four items as
follows and extent of check is as prescribed but different dates being taken for each type of
vouchers. All vouchers should be traced into Transaction Register.
a) Issue Notes to Revenue and Capital: Vouchers relating to the selected dates should be
traced into Debit/Credit summaries. The allocation code of the consignee should be checked
in addition to the rate adopted.
b) Issues to Sales: Statement No.17 shows the voucher-wise details of sales. Vouchers to the
extent prescribed may be taken for check from this statement. In respect of sales to outsiders,
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when advance money is not paid, it should be seen that debits are raised without delay after
adding percentage charges prescribed in the code.
c) Items to Workshops: The selected vouchers should be traced into Debit Summaries for
allocation check to see that these are debited to the relevant work order correctly.
d) Issues to inter-depot transfers: The check prescribed for "Depot Transfer Receipts" should
be done in this case also.
e) Other delivery notes: The transactions of miscellaneous issue vouchers such as fabrication
issue notes, loan issue notes, issue notes for return of materials taken on loan etc. may be
checked to the extent prescribed.
Priced Ledger: Manual posting and maintenance of Priced Ledgers has been dispensed with
completely in the Depot Stores Accounts Office and this phase has been completed in respect
of all the Depots of this Railway by March 1971. At present numerical ledgers are being
maintained by the depots, but these are also in due course being eliminated. In place of these
two sets, a single master file has been built up in the computer room on magnetic tape which
contains the master code information such as depot, ward, unit, P.L.No. rate etc. This is
being continuously up-dated by posting of receipts and issues and striking average rates for
adopting this rate for further issues etc. After all the vouchers are put in the computer,
excluding those few items included in the "invalid statements", a monthly Transaction
Register is taken out which is already described in Para 5(d) above.
For opening the record on tape, the items were transferred to computer from
manually posted ledgers during various periods from April 1969 to March 1971. All the
balances in the P.Ls were reviewed with a view to rectifing irregular balances, if any, before
transfer to computer for preparing opening balance statements. The correctness of the carry
forward of the opening balance on the cut off date (viz., the date on which the balances in the
P.L. on manual system were taken over on computer) should be test-checked and the extent
of check may be prescribed by the Principal Director of Audit.
Audit of Priced Ledger: The monthly Priced Ledger prepared by the Computer (known as
Transaction Statements) contain only items in which there are transactions during the month.
Hence, review of Priced Ledgers is done with reference to the periodical statements of the list
of balances which contain all the items moved and unmoved. The opening balance should be
checked to the prescribed extent every month. The review should be supplemented by a
review of the various managerial statements prepared by the computer. Para 317 of Railway
Audit Manual prescribes the checks to be conducted in respect of Priced Ledger.
1) To ensure daily and prompt posting of vouchers and work out closing balances daily. This
check is to see that vouchers are posted daily in Priced Ledgers. This is not possible of being
seen on machine statements because no daily print outs are obtained. By checking the
Transaction Register, it can be generally ensured that a month's vouchers are brought into
account in the same month and that there are no undue delays in accountal. If delays are
found, the reasons should be investigated and the matter taken up with the Railway
Administration.
304
2) To see that there are no irregular balances in the ledger. Under the system of accountal on
computer, no irregular balances will generally arise - such as quantity without value, minus
quantity or minus value. Irregular balances due to value without quantity and quantity
disproportionate to value may very rarely arise due to rounding off of issue rates which may
be seen at the time of review of Transaction Register and taken up with the Administration, if
they are heavy and not regularised in the subsequent months.
3) Difference between ledger rate and P.L. rate: During the review of Transaction Register,
the last rate shown against each selected item should be compared with the P.L. rate and
substantial differences, if any, should be investigated and brought to the notice of the Railway
Administration.
4) Book losses, depreciation, etc. of substantial amounts regularly written off:This can be
seen during the check of stock adjustment account.
5) Reconciliation between ledger balances and General Books:After elimination of numerical
ledgers and maintenance of unified lists on computer, the question of reconciliation with
numerical ledgers does not arise. This case is still in the processing stage. Until such time
this is completed, it may be ensured that the monthly reconciliation with the general books is
continued to be done. It may also be seen that reconciliation procedure provides for:
i) monthly reconciliation of class summaries with departmental summaries,
ii) reconciliation of debits, credits and balances in the class ledgers(Depot or
consolidated, as the case may be) with those appearing in the General Books, and
iii) reconciliation of the balances in the Priced Ledger with those in the General Books.
The adequacy of the action taken by the Accounts Office or discrepancies in
the different sets of figures may also be reviewed.
The other checks prescribed in this Para may continue to be done under the
computerised accounting.
As all the Priced Ledgers are to be reviewed, the units of work may be
arranged to be distributed evenly throughout the year. If any ledger like Permanent Way
ledgers are still maintained manually, these may be kept in separate units to facilitate audit of
manual ledger separately. These manual registers may be continued to be audited as
prescribed in the Railway Audit Manual.
In respect of ledgers on computerised accounts, they may be reviewed with reference to half
yearly listing of the immediate preceding half year and entries in the subsequent Transaction
Register in respect of groups/items.
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ANNEXURE I
(Para 1003)
The Register of Review of Purchase Orders should be maintained in the following proforma:

1. Serial Number
2. Purchase Order No. & Date
3. Demand Number & Date #
4. Estimate Sheet Number & Date #
5. Type of Tender
6. Date of Advertisement of Tender #
7. Corrigendum issued if any #
8. If issued, expenses incurred therefore #
9. Last date for submission of Tender
10. Date of Opening the Tender
11. Validity period of Offer #
12. Date of Tender Committee Proceedings
13. Date of Acceptance #
14. Accepting authority #
15. Name of the Supplier
16. Description of Stores
17. a) Quantity
b) Consignee
18. Rate accepted: (a) Basic Rate (b) Excise Duty (c) Central / State Sales Tax (d)
Freight (e) Insurance (f) Discount, if any (g) Any other item
19. Total Value
20. (a) Whether lowest tender was accepted
(b) If not, whether the reasons for rejection of the lowest tender were placed on
record, such as (i) Item technically not suitable, (ii) unsolicited offer, (iii) Counter
offer made by the firm, and (iv) Any other reasons recorded
21. Whether audit has questioned the discretion exercised by the Competent Authority
22. Whether all the points indicated in Para 267 of Railway Audit Manual have been
covered
23. Audit comments
24. Reference to Special Letter / Audit Note issued based on the observations with
reference to Sl.Nos. 20 to 22 above
25. Signature of the Officer who has reviewed the Purchase Order.
(Note: Items marked (#) are incorporated in the list as per the recommendations of the
Railway Audit Norms Committee vide Annexure XVI, Para 5.5.3 at P. 36 & 96)
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ANNEXURE II
(Para 1004 Sub-Para 5)
The Register of Review of implementation of Contracts should be maintained in the
following proforma.
i. Serial Number
ii. Quarter Ending
iii. Contract Agreement, Purchase Order Number and Date
iv. Name of the contractor / firm
v. Name of work / particulars of material supplied
vi. Value of the contract
vii. Date of commencement
viii. Due date of completion
ix. Extension, if any
x. Revised date of completion
xi. Actual date of completion
xii. AU 6 No., CO 7 No. and date of final Bill
xiii. Whether the PO is a Z category PO i.e., PO issued against time preference clause
xiv. In case of Risk Purchase PO, whether penalty has been recovered from the
defaulting firm
xv. Recovery of Liquidated Damages charges due has been effected or not
xvi. Special Features, if any
xvii. Reference to objection issued
xviii. Remarks of the Reviewing Officer
xix. Signature
(Note: Items are incorporated in the list as per the recommendations of the Railway
Audit Norms Committee vide Annexure XVII, Para 5.5.3 at P. 36 & 97)
Ch.XI - Page 1 of 35
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CHAPTER - XI
TRAFFIC AUDIT
1101: The Traffic Audit Branch is responsible for the audit of transactions relating to local
and foreign traffic which are dealt with in the Traffic Accounts Branch of the Financial
Adviser and Chief Accounts Officer's Office and also for conducting station inspections. The
Traffic Audit Branch is under the audit control of 3 Audit Officers viz. Audit Officer(Traffic
Headquarters), Audit Officer(Traffic Audit Inspection-I) and Audit Officer(Traffic Audit
Inspection-II). The Central Audit section and the Inspection section are linked so that there
will not be any delay in taking up issues noticed during central audit/inspections and in
pursuing the objections. Central Audit Section of THQ is re-organised as THQ-Coaching &
THQ Goods. The staff of the Inspection section will be under the control of the Audit
Officers/Sr.Audit Officers in charge of the inspections. Central Audit Section (Local) audits
sundry earnings and reviews Compensation Claims cases settled by the Railway. The Central
Audit Sections, besides conducting the audit of transactions according to the programme of
audit, are also responsible for the scrutiny of sanctions, commercial circulars/notifications,
Through Rate Circulars (TRCs), Local Rate Advices (LRAs) etc. These should be promptly
taken up for scrutiny and filed only after examining all the implications of each circular etc.
and, wherever necessary, initiating action for review after obtaining the orders of the
Principal Director of Audit. While endorsing copies of these circulars to the inspection
section, the specific aspects requiring attention and examination should be brought to their
notice.
Copies of all orders/notifications etc. should be endorsed to all the Divisional
Audit Officers also for their information and guidance and also copies of the printed circulars
should be arranged to be supplied to the Divisional Audit Officers through their respective
Divisional Commercial Managers.
The Divisional Audit Officers carry out the review of cases relating to
remission of wharfage and demurrage charges. The inspection section conducts the local
inspection of the accounts of the Stations, Out-Agencies, City/Town Booking Agencies,
Travel Agents and sidings. The working of the Inspection section is dealt with in Chapter
XIV (Inspections). The points to be seen specially during local inspections in respect of
certain items are indicated in this chapter.
The essential duty of audit in the matter of audit of earnings is to see that:
1. the person to whom service is rendered pays the proper charges,
2. the Railway servants receiving the charges account for them correctly,
3. the rates and fares fixed from time to time by the Railway Administration are within
the maxima and minima prescribed by the competent authorities; and
4. if more than one Railway renders the service, the earnings are properly distributed
between the Railways in accordance with the rules and orders relating to such
apportionment.
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The check of earnings should be carried out with reference to:
(1) the orders, rules and regulations issued by the President or the Railway Board;
(2) the Indian Railways Act,1890 and rules etc. made thereunder;
(3) the Conference Regulations framed by the Indian Railway Conference
Association;and
(4) the tariffs, rate circulars etc. issued by the Indian Railway Conference Association or
by the Railway Administration.
The tariffs should be kept corrected up-to-date. It should be ensured that all
correction slips and rate circulars have been received.
In respect of irregularities already noticed in internal check by the Accounts
Office in the documents coming up for audit, it should be seen whether suitable action has
been taken to rectify them.
The audit of the accounts of a month is done in the fourth following month
with certain exceptions like journal vouchers, certain foreign traffic items, warrants and credit
notes etc. The month in which audit is conducted in such cases is indicated in the relevant
paragraphs.
1102. Sanctions: Sanctions issued by the President and the Railway Board relating to more
than one Railway are audited by the D.A.I.(Railways) and copies forwarded to the Principal
Directors of Audit. Rules and modifications issued by the I.R.C.A. and correction slips to
tariffs and publications issued by the Association are also audited by the D.A.I.(Railways).
Other financial sanctions pertaining to this Railway accorded by the
Government of India, Railway Board or the General Manager, sanctions pertaining to local
traffic and sanctions issued by the Railway Administration relating to inter-changed traffic
between two Railways will be audited by the Central Audit Section.
(See Para 7 of Railway Audit Manual).
Concessions granted under delegated powers: The General Managers have been delegated
with powers to grant concessions in individual cases as also for waiver of detention charges
of special coaches etc.
This item is covered by "General Manager's sanctions" which are audited cent
percent. J ustification for the sanction should be examined with reference to Administration's
files. In order to assess the total financial effect of such concessions, a separate Register
should be maintained to record all General Manager's sanctions relating to Railway receipts,
results of audit and the financial implications. An Annual Report indicating the total
financial effect of such concessions for the financial year should be sent to Coordination
section by the 30
th
April, for considering possible comment in the Audit Report.
Detailed instructions for the audit of sanctions contained in Para 602 of
Chapter VI of this manual should be followed.
(See Paras 6, 132 and 133 of Railway Audit Manual).
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1103. Station and Out-Agency accounts: The extent of check of station accounts to be done
is laid down in Para 9 of the Secret Memorandum of Instructions.
Stations, Out-Agencies and City-Town Booking Offices are classified as very
big, major or minor based on the earnings. As a very big/major station may become a
major/minor station or vice-versa due to decrease/increase in traffic, an annual review is
made by the Accounts Office and corrections to the list of stations are carried out. This list
should be referred to in March every year and list of stations maintained for selection kept
up-to-date.
All the stations on the Railway are divided into number of units according to
the prescribed percentages and out of this, one unit from each category is selected for audit.
In addition, one or two stations are selected and audited to maintain an element of surprise.
The selected stations are noted by the Auditors/Sr.Auditors of the Traffic
Audit Branch who will call for the relevant documents relating to the accounts of the stations
selected for audit and complete the audit.
(See Paras 165 and 175 of Railway Audit Manual).
1104. Coaching Accounts: Passenger Traffic: In respect of stations selected for audit, the
local and foreign passenger classifications for the month of audit and that for the previous
month should be obtained. Concession vouchers, collected tickets and non-issued tickets
should also be obtained. In the case of classification relating to Blank Paper Tickets, the
Accounts as well as collected foils of the Blank Paper Tickets should be obtained.
The passenger classification should be checked in accordance with the
instructions contained in Para 2109 A-II et seq. The correctness of the fare charged should
also be verified in audit. In the case of tickets charged at reduced rates, the correctness
thereof should be verified with reference to the supporting documents viz., P.T.Os.,
concession order etc. accompanying the passenger classification, though the collected P.T.Os.
and concession orders need not be checked.
It should be seen that the tickets accounted for in the passenger classification
relate to the series supplied to the station. The collected tickets may be examined to see,
among other points, whether the blank paper tickets have been correctly accounted for by the
issuing stations and the highest number of collected tickets is not higher than the closing
number for the month as indicated in the passenger classification. The audit of non-issued
tickets should be conducted in accordance with Paras 2108-A.II.
The passenger classification of the selected stations relating to military
warrants should also be checked both for local and foreign traffic, though the warrants
themselves need not be checked in audit. The entries in the classification should also be
compared with those in the collected soldier tickets and it should be seen that the ticket
numbers accounted for in the classification are in serial order and the commencing number
tallies with the closing number in the previous month's classification.
The totals of the classification should be checked and traced into the General
Summary and the latter into the Balance Sheet.
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The audit of passenger classification includes the scrutiny of season tickets
and concession vouchers. Season tickets are accounted for and dealt with like other printed
tickets or blank tickets. The audit of season tickets should be done in the same manner as
audit of printed tickets or blank paper tickets.
1105. Concession Vouchers: Concession vouchers should be scrutinised in accordance with
the instructions contained in Para 2114-A.II.
1106. Tracing of errors noticed in the check of passenger classification in "incorrect
statements" and review of incorrect statements: While checking the passenger
classification (printed series) the errors noticed should be traced into the incorrect statement
to verify the action taken by Accounts Office. In addition, the incorrect statements as a
whole of the stations selected for audit should be reviewed and the adequacy of the action
taken by the Accounts Office ensured.
(CAG's letter No.1941-160-RAI/8-6/71 dated 10.6.1971)
Undercharges already noticed by Accounts Office and marked on the
passenger classification (other than printed series) of the stations selected for audit should be
traced in the Register of Exempted Debits/Error Sheets, as the case may be, to ensure that
necessary action has actually been taken by the Accounts Office.
1107. Audit of collected tickets and Ticket Collector's Reports: In addition to check of the
highest number of collected tickets between pairs of stations with the passenger
classifications of stations selected for audit, a concurrent check of collected tickets and Ticket
Collector's report of station selected out of the stations taken up for audit should also be done.
While checking the collected tickets at Headquarters (and during local
inspections), it should be seen that:
(1) tickets are invariably nipped,
(2) the tickets collected are in all respects genuine and are otherwise in order,
(3) the dates impressed on the tickets are clear and that there is no unauthorised defacing
of the tickets in any manner whatsoever. In addition, the checks prescribed in Para
2105-AII should also be carried out, and
(4) at bigger stations especially at Headquarters of the Railway the percentage of tickets
missing from collection is kept to the minimum, say 7 or 8%.
At the time of review of the working of the Accounts Office, the various
registers maintained in the Accounts Office in connection with the internal check of collected
tickets should be reviewed to ensure that the checks prescribed are correctly exercised by
them.
A review of the Ticket Collectors reports of selected stations for a month
should be conducted with a view to seeing in particular that the percentage of missing tickets
is kept at a minimum, say 7 or 8%.
1108. Return of Tourist Agents: The selected returns should be audited monthly in the same
manner as passenger classification verifying inter-alia the correctness of the rates charged,
314
the refunds allowed on unused tickets and the commission claimed. In case a percentage of
the fare is retained in arranging refund on a ticket, the percentage so retained is shared in
accordance with the agreement. It should also be verified that the net amount due to the
Railway has been correctly worked out and received by the Railway Administration.
The following points should be seen:
1. The security deposits paid by the tourist agents are adequate with reference to sales
returns.
2. There is no delay in submission of returns and remittances by the tourist agents. The
travel agents are required to render their accounts bi-monthly and they should remit
the sale proceeds and submit their sales statements within five working days after the
expiry of each fortnight.
(Railway Board's letter No.TC/II/2025/65 dated 19.7.1967 and 22.4.1970)
3. There are no outstandings of sale proceeds of Railway tickets lying against the
tourists for unduly long period.
4. The stock registers are maintained by the Accounts Office and kept up-to-date and
that large stock of tickets is not lying with the tourist agents for unduly long periods,
and
5. In respect of transactions of foreign railways, the continuity of all the tickets issued
should be checked with reference to the supply statements.
(Paras 2141-2142 A-II).
1109. Excess Fare Returns: The excess fare returns of the stations selected for audit should
be checked in accordance with the provisions of Paras 2150-2158 A.II. The series of tickets
used should be compared with the excess fare ticket books issued to the stations, as appearing
in the registers maintained in the Accounts Office.
The collected excess fare tickets should be compared with the Accounts Office
copies to ensure that there is no manipulation of figures of charges collected. For this
purpose, the excess fare tickets issued to other railways and collected at the destinations are
required to be returned by the Accounts Office of the destination railway to the Accounts
Office of the forwarding railway. It should be seen that double sided carbon sheets have been
used in the preparation of the excess fare tickets. The total of the excess fare returns should
be checked and traced into the balance sheet of the station.
1110.Luggage, Horse, Carriage and Dog Returns: The rules relating to the booking of
luggage, horse, carriages etc. are published in the I.R.C.A. coaching tariff. The returns
should be audited with reference to the provisions of Paras 2202-2207 A II and the total of
the returns should be checked and traced into the balance sheet of the station.
1111. Demurrage and wharfage of parcels and left luggage: The audit of the returns
submitted by the stations should be conducted in accordance with the provisions of Paras
2208-2212 A.II and the amount accounted for in the returns checked with the amount taken to
debit in the balance sheet of the stations.
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1112. Check of coaching traffic - Non-Government Railways: The check of
coaching traffic booked from this Railway to non-Government Railways and vice versa, one
unit (both outward and inward traffic) is done every month to the prescribed extent. The
checks prescribed for audit of passenger classification (Government Railways), parcels etc.
should be applied in the cases of traffic relating to non-Government Railways also. In
addition, the correctness of apportionment of earnings between the Government and non-
Government Railways made through Division Sheets should be checked in audit.
1113. Special Trains, Tourist Cars etc.: All cases relating to running of special trains,
tourist cars etc. the charges for which are collected and accounted for in the passenger
classification of the stations selected for monthly audit, should be checked. In addition, cases
noted in the register of special trains etc. maintained in the Financial Adviser and Chief
Accounts Officer(T)'s office, are selected for check to the prescribed extent every month.
Settlements in respect of payments towards Special trains is being done at
stations itself since February 2005. Hence this item of Audit is now transferred to Local
Audit Inspections Sections.
The following points should be seen.
1. That necessary deposit has been collected.
2. Charges for special trains, tourist cars etc. should be checked in accordance with the
rules given in the Coaching Tariff and with the help of the tour programme issued by
the Chief Operating Manager and the composition statement.
3. That the charges as shown in the special ticket and collected by the station, from
where special train starts are accounted for in the passenger classification and balance
sheet of the station to ensure correct accountal of the charges, and
4. That the refund has been correctly made.
1114. (a) Parcel Traffic ('Paid'): The accountal of paid' parcels traffic is on 'forwarded
basis'. According to this procedure, the forwarding stations prepare paid parcel way bills in
four foils viz., record, receipt, guard and Accounts Office. The transactions thereof are
accounted for in a separate cash book in two foils, the second being written by carbon
process. The original is retained by the station for record, and the carbon copy of the paid
parcels cash book supported by the connected Accounts foils of the paid parcel way bills is
submitted to the Accounts Office at the end of the month with the following certificates by
the Station Master/Chief Parcel Clerk:
a. that the total amounts (paid) for the month as shown in the cash book have been taken
to debit in the balance sheet under the head outward paid parcels (local)/(foreign)
and
b. that the parcel way bills issued during the month fall within the machine numbers
specified in the certificate.
In order to guard against the possibility of frauds such as use of privately
printed Parcel Way bill forms or collection of higher freight than that shown in the Accounts
316
Office foils of Parcel Way bills and accounted for in the parcel paid cash book, the following
checks are exercised by Accounts Office.
A register is maintained in the Accounts Office to record the supply of
machine numbers of paid parcel way bill books to each station, as advised by the supplying
office and ensure that the parcel way bill books are brought into use in consecutive order by
the stations and that all the foils are accounted for. In addition, a master list of all parcel way
bill books (local and foreign) supplied to all stations on the Railway is prepared by the
Accounts Office and supplied to the Travelling Inspector of Accounts. During their
inspection, the Travelling Inspectors of Accounts make use of this list to check the machine
numbers of Parcel Way Bills for local traffic entered in the delivery books of the stations.
The Travelling Inspectors of Accounts also verify that the books issued to the stations are
correctly taken into account.
The guard foils of the Parcel Way Bills received from destination stations are
checked to the prescribed extent by the Accounts Office with the cash book copy forwarded
by the Booking station.
Out-Agencies/City Booking Agencies and worked line stations, however,
submit abstracts for Inward Paid Parcels traffic for both local and foreign traffic supported by
Guard's foils of the Parcel Way Bills. The Out-Agency/City Booking Agency Bills and share
of the worked lines are checked with reference to these abstracts. The Out-Agency/City
Booking Agency Bills and share of worked lines for traffic originating from the Out-
Agency/City Booking Agency or worked line stations are, however, worked out on the basis
of the information available in the Paid Parcel Cash Book.
1115. Audit of Parcel Way Bills: While auditing the parcel traffic, the following points
should be seen:
Local Traffic: (A) Forwarded 'Paid':
i) The copy of the parcels cash book received in Accounts Office from the station is in
the prescribed form and is a carbon copy.
ii) All the accounts foils of the 'paid' Parcel Way Bills mentioned in the copy of the cash
book have actually been received.
iii) The Parcel Way Bills accounted for are in consecutive order and are in continuation
of the closing No. of the Parcel Way Bills issued in previous month.
iv) The cancelled way bills are entered in the cash book and all the three foils other than
the record foil are received along with the cash book.
v) Necessary certificate has been furnished in the summary page of the cash book that
the amount shown in the cash book has been taken to the debit side in the balance
sheet for the month under the relevant head and no parcel way bills other than those
included in the cash book have been issued during the month at the station for this
traffic.
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vi) A 'nil' return is received where there is no transaction of outward paid traffic during a
month and the last number of the parcel way bill issued previously is not included in
the cash book.
vii) The entries in the master list of paid parcel way bill books supplied to stations,
maintained by the Accounts Office, should be referred to in respect of stations
selected for audit to see whether the number of parcel way bills received and checked
tally with those shown in the master list of parcel way bill books as supplied to the
stations concerned, and
viii) The selected parcel way bills should be audited in accordance with the provisions of
Para 2215-A II and traced into the cash book of the station. The total of the cash
book for the month should be checked and compared with the amount shown in the
balance sheet of the station for the month against the item "parcels traffic outward
paid(local/foreign)".
The guard foils of the selected destination stations viz., Very Big, Major and
Minor, should be compared with the cash book entries of all the stations selected for normal
monthly audit.
In the case of traffic pertaining to motor cars, carriages etc. the 'paid' traffic
will be checked on the inward basis according to Para 2215-AII et.seq., and traced into
received abstracts and summaries.
1116. Register of unaccounted for parcel way bills: The register maintained in the
Accounts Office should be reviewed to see that there are no old items and prompt and
adequate steps are taken by the Accounts Office to clear the items.
(Para 2225 A II)
1117. Audit of Parcel Way Bills - Foreign Traffic - (Government Railways): (a)
Forwarded outward paid: The checks detailed for the local outward paid parcel way bills in
Para 1115(A) will apply mutatis mutandis to foreign outward paid parcel way bills also.
It should also be seen that:
i) The code initials of the railway in which the destination station is situated are
indicated on the way bills to facilitate postings being made easily in the foreign paid
parcels cash book, and
ii) The new cash book provides separate columns to indicate the freight on paid parcels
booked to each terminating Government Railway and non-Government Railway.
Comparison of guard foils of selected destination stations with the entries in
the cash book of all the stations selected for normal monthly audit should be made. In case
no guard foils in respect of the stations selected for audit have been received in the Accounts
Office, selected guard foils actually received in the Accounts Office should be compared with
the corresponding cash book.
1118. Comparison of forwarded abstracts received from foreign railways with the
received abstracts and preparation of lists of unaccounted for parcel way bills: The
forwarded abstracts received from all the Railways(Government) are compared with the
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received abstracts of the stations included in the unit selected and unaccounted for items
traced into the list prepared by the Accounts Office. Omissions, if any, should be pointed out
for rectification. This comparison is done in the fifth following month.
1119. Foreign Traffic (Non-Government Railways): Traffic booked from this Railway to
non-Government Railways and vice-versa is checked to the extent prescribed.
The following procedure should be followed in respect of check of parcel way
bills booked from this Railway to non-Government Railways and vice-versa.
i. Traffic booked from this Railway to non-Government Railway (forwarded traffic):
The parcel way bills accounted for in the division sheets received from the selected
non-Government Railway should be checked and traced into the division sheets, and
ii. Traffic booked from non-Government Railway to this Railway (received traffic): In
respect of the selected non-Government Railway, the parcel way bills accounted for in
the division sheets prepared by this Railway and sent to the non-Government Railway
should be checked and traced into the division sheets. As the parcel way bills are sent
to the non-Government Railways along with the division sheets in the month of
accountal itself, the way bills in respect of the non-Government Railway selected
should be checked concurrently.
1120. Comparison of outward and inward traffic returns and review of lists of
unaccounted for parcel way bills (Non-Government Railways): The outward abstracts in
respect of the stations selected for audit during the month should be compared with the
Inward Division Sheets received from the non-Government Railways and the items missing
should be traced into the list of unaccounted for way bills. Audit is done in the fifth
following month.
1121. Tracing of undercharges noticed on parcel way bills into Register of Exempted
Debits/Error Sheets: Undercharges already noticed by Accounts Office and marked in the
parcel way bills (local and foreign) selected for audit should be traced into the Register of
Exempted Debits/Error Sheets, as the case may be, to ensure that necessary action has
actually been taken.
1122. Verification of parcel way bill books in use in stations: During local inspection of
the station accounts, the Audit Inspection Party should verify the machine numbers of books
supplied to the station with those actually in use.
1123. Telegraph Traffic Receipts: The returns submitted by the stations will be checked
with the message drafts and the correctness of the charges collected on the latter verified as
indicated in Paras 2244 to 2251 A II. The total of the return will be traced into the balance
sheet.
Statements of apportionment of earnings from inter-changed telegrams should
be checked as indicated in the note under Para 171 of Railway Audit Manual.
1124. Concurrent check of Police Warrants and Credit Notes (Parcels and Goods): The
warrants and credit notes in respect of the stations selected for audit should be checked
concurrently and undercharges, if any, noticed should be pointed out for inclusion in the bills.
As per orders of Principal Director of Audit, it has been decided to select in advance two days
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(one day in each fortnight) for auditing in Traffic Accounts Office. The checked warrants
and credit notes should be traced into the bills, the total amount billed for verified and traced
into the Bills Register. While auditing these vouchers, the instructions contained in Paras
2728-2730, 2904 and 2905 A.II may be borne in mind. The commission charges on warrants
and credit notes should be checked with reference to the provisions of Para 2911 AII et seq.
The genuineness of the warrants should be checked with reference to statements received in
the Accounts Office from the issuing Officers.
1125. Review of Registers of Credit Notes kept pending: The register of Credit Notes kept
pending, maintained in the Accounts Office, should be reviewed to see that prompt action is
taken to include the pending credit notes in the subsequent bills.
(Para 2910 AII)
1126. Audit of Coaching Balance Sheets: The audit of coaching balance sheets should be
conducted with reference to the instructions in Chapter XXVII-A II.
1127. Goods Accounts: With a view to reducing the work load at the stations and in the
Accounts Office and ensuring the accountal of goods traffic of a month in the same month's
accounts, simplified procedure of accountal of goods traffic has been introduced in respect of
local traffic and traffic interchanged with other Indian Government Railways. Under this
procedure, the accountal of goods traffic both paid and To-pay is done on forwarded
basis. The station prepares the invoices in four foils for local traffic and five foils for foreign
traffic. One of the foils is termed 'Account foil'. Each station arranges the invoices into four
distinct bundles, one for each of the following types of invoices:
i. 1. Local to-pay
2. Local paid
3. Foreign to-pay
4. Foreign paid
A covering memo is prepared and placed on each bundle. These bundles are
collected by the couriers deputed for the purpose to the stations at the prescribed intervals and
delivered in the Accounts Office. The invoices are checked in the Accounts Office with
reference to the covering mema to see that all invoices issued during the period have been
correctly received and in respect of cancelled invoices, all foils except the 'Record foils' have
been received. This is done by examining the continuity of the printed Railway receipt
numbers on the invoices. In the case of paid invoices, in addition to check of continuity of
printed numbers, the numbers are verified by Accounts Office with reference to the
particulars of paid invoice books supplied to the stations. The cancelled invoices are
detached from the bundles and kept separately.
ii. The invoices are checked in Accounts Office to the extent prescribed in regard
to the correctness of route, rate and classification and codes. The freight is checked manually
only in the case of live stock, traffic in wagon loads, minimum charges, wagon kilometre
rates etc. and traffic to non-Government Railways.
iii. The bundle of Accounts foils of the invoices are thereafter handed over to the
Statistical Branch with the covering memo where the calculation of the freight charges is
checked by the machines. A card is punched for each invoice and machine outward abstracts
are prepared detailing the invoices booked to each station from all the stations on the home
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railway and foreign railways separately in three copies for local traffic and four copies for
foreign traffic. Simultaneously, a statement showing the under and over charges found as a
result of check of invoices is prepared by the machines and undercharges over Rs.50/- are
advised to to the destination stations immediately, for collection before delivery. From the
cards punched for the invoices, a paid statement in respect of traffic booked from each station
to various stations is also prepared by the machines separately for local/foreign traffic. The
statement is utilised to verify the correctness of the debit taken against outward paid traffic
(local) in the balance sheet of the station. Copies of the machine outward abstracts are sent
to the destination stations, in duplicate. In the case of foreign traffic, two copies are sent to
the Divisional Offices and one copy to the receiving Railway Accounts Office. These are
converted by the destination stations as their inward abstracts after linking the entries
appearing in the delivery books with the machine prepared abstracts. The undercharges or
overcharges discovered as a result of check of invoices at the destinations are noted in both
the copies of the abstracts. In the case of undercharges due to error in description and weight,
a copy of the relevant invoice with particulars of undercharges is sent to the Accounts Office
with the machine abstracts. The total of the 'To-pay' items in the abstracts is cast and this
forms the basis of the debit to be taken against the item 'Goods Inward To-pay(local)' in the
debit side of the balance sheet. In the case of foreign traffic, a summary is prepared by the
destination station bringing forward the corrected totals of 'To-pay' items in the machine
abstracts received from all the Railways and this forms the basis of the debit to be taken by
the station against the item 'Goods Inward To-pay(foreign)' in the balance sheet.
iv. Copies of the converted abstracts (local and foreign) are submitted along with
the balance sheet of the station for the month. The converted abstracts received from the
stations are checked in the Accounts Office, with reference to the copies of the machine
outward abstracts available with them and the correctness of the debit taken in the balance
sheet against 'Inward to pay traffic (local/foreign)' is verified.
v. The monthly incorrect statements which are received from the machine section
form the basis for raising debits against the station. In the case of foreign traffic, the monthly
incorrect statements for undercharges debitable against the destination stations as also for
overcharges on 'To pay' invoices are sent by the forwarding Railway Accounts Office to the
receiving Railway Accounts Office duly supported by the original invoices. Receiving
Railway Accounts Office checks all items of overcharges before sending the advice to the
Commercial Departments for arranging voluntary refunds. As regards undercharges, the
verification in the first instance is done by the receiving Railway Accounts Office with
reference to the Machine Prepared Abstracts received back from the stations recording
therein undercharges as per Inward Delivery Book. For items where undercharges have not
been accounted for by the stations, necessary debits are raised after recheck of charges.
1128. Audit of Invoices: The audit of invoices is done on forwarded basis i.e., the accounts
foils submitted by forwarding stations to the Accounts Office are checked in respect of
stations selected for audit to the extent prescribed. The selection of invoices for audit is made
from the paid statement of the selected stations which show details of invoices in respect of
both 'paid' and 'to-pay' traffic. In regard to the selected invoices (foreign) which have been
included in the Statement of Incorrect Invoices and sent by the Accounts Office to the
Accounts Offices of the receiving Railways, a list should be prepared and sent to the
Principal Director of Audit of the receiving Railway concerned, for audit. Other selected
invoices Paid and to pay relating to both local and foreign traffic available in the
Accounts Office should be audited in all respects including class, rate, freight etc. as
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indicated in Para 2305-2306 AII. In addition, the following further checks should be
exercised.
a. All the paid invoices selected for audit should be traced into the 'paid' statement and
'to-pay' invoices should be traced into outward abstracts.
b. The continuity of paid invoices should be verified with reference to the 'Register of
Paid Invoice Books' supplied to stations, maintained in Accounts Office and the
number of 'to-pay' invoices should be checked with the commencing and closing
numbers given in the covering mema received from the stations. In addition to these
checks, the continuity of invoices should also be checked by comparing the first entry
in the current month's paid statement (viz., month of accounts selected for audit) with
the last entry in the previous month's paid statement, both for 'paid' and 'to-pay'
invoices. The continuity of the invoices within the paid statement should also be
checked.
c. In respect of cancelled invoices, it should be seen that all foils except the record foils
have been received from the stations, and
d. The disposal of discrepancies, if any, recorded in the converted abstracts by the
receiving stations, such as in the case of undercharges due to error in weight and
description, should be checked to see whether adequate action has been taken by the
Accounts Office.
1129. Check of Invoices marked for weighment enroute: The check of invoices marked
for weighment enroute should be done both with reference to the Accounts foils of the
invoices and the converted abstracts of the station selected for audit. The following
procedure should be followed in audit.
Local Traffic:
a. If the invoice selected for check had been endorsed for weighment enroute, the actual
chargeable weight should be ascertained from the monthly statements of
weighments/daily advices received from weigh-bridge stations(vide rule 1424 (b) and
1425 of Indian Railway Commercial Manual) and compared with that taken into
account by the destination station in its converted abstract for the purpose of recovery
of freight and discrepancies, if any, taken up, and
b. While tracing the audited invoices into the machine prepared abstracts, it should be
seen that invoices marked for weighment enroute have been properly identified by an
asterisk in the machine prepared abstracts or alternatively have been included in the
Register 'Statement of Invoices marked for weighment enroute'.
1130. Audit of Invoices (Foreign Traffic): The procedure outlined in Para 1129 of this
Manual should be followed in respect of goods traffic relating to foreign traffic.
As stated in Para 1128(iii)-Ofice Manual, the Accounts Office of the
forwarding railway will send one copy of the Machine Prepared Outward Abstract to the
Accounts Office of the receiving railway and two copies of the abstracts to the destination
stations concerned through the Divisional Headquarters of the receiving Railways. The
stations will compare these abstracts with delivery books, then convert them into Inward
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Abstracts and take debit in their Balance Sheets for the total amount in the abstracts. It
should be seen that the inward abstracts sent by the stations along with their Balance Sheets,
correspond to those received in the Accounts Office from foreign railways.
1131. Check of invoices marked for weighment enroute: (a) The procedure for the check
of invoices(local) marked for weighment enroute detailed in Para 1130 O.M. will apply
mutatis mutandis for foreign traffic also.
(b) Since this office will not be able to check the invoice selected for audit
with reference to the weigh-bridge advices and converted abstracts, full particulars of foreign
invoices marked for weighment enroute selected for monthly audit indicating station from,
station to, invoice number, railway receipt number, wagon number and owning railway,
charged weight, rate charged, weighbridge where required to be weighed etc. should be
furnished to the Principal Director of Audit of the receiving Railway. The Audit Officer of
the receiving Railway will ascertain the actual chargeable weight in respect of these invoices
from the extracts of weighbridge returns furnished by the Railways on which weighbridge
stations are situated to the destination Railways and from the weighbridge advices received
by the Traffic Accounts Office of the destination station direct from weighbridge stations in
terms of rule 1425 of Commercial Manual. The weight so ascertained will be compared with
the weight taken into account by the station in its converted abstract.
(CAG(R)'s letter No.2486-RAI/T/17-12/65 dated 12.7.1967, 1942-RAI/T/17-
107/67 dated 12.5.1970 and 1941-160-RAI/8-6/71 dated 10.6.1971).
Note: Detailed instructions regarding internal check of invoices marked for weighment
enroute contained in F.A.&C.A.O's S.O.O. No.A/GL/2 of 1967 dated 10.10.1967 may
be seen.
1132. Tracing of undercharges noticed on invoices into incorrect statements and review
of incorrect statements: Undercharges noticed as a result of check of invoices should be
traced into the 'incorrect statements'. In addition to such tracing, the incorrect statements of
the stations selected for audit should be reviewed to see that necessary error sheets are issued.
(CAG's letter No.1941-160-RAI/8-6/71 dated 10.6.1971).
1133. Check of Invoices - Non-Government Railways: The following procedure should be
followed in regard to the check of invoices booked from this Railway to non-Government
Railways and vice versa.
(i) Traffic booked from this Railway to non-Government Railway: The invoices accounted
for in the division sheets received from the selected non-Government Railway should be
checked to the extent prescribed and traced into the division sheets.
(ii) Traffic booked from non-Government Railway to this Railway: In regard to the selected
non-Government Railway, the invoices included in the division sheets prepared by this
Railway and sent to the non-Government Railway should be checked to the extent prescribed
and traced into the division sheets. As the invoices from the Non-Government Railway are
sent along with the division sheets in the month of accountal itself, the invoices included in
the division sheets should be checked to the extent prescribed concurrently.
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1134. Comparison of outward and inward traffic returns and review of unaccounted for
invoices (Non-Government Railways): The Inward Division Sheets of the Non-Government
Railway selected for audit of invoices should be compared with the forwarded abstracts of the
stations of this Railway selected for audit. This should be done in the fifth following month.
1135. Railway Material Traffic: Railway Material Traffic does not come under the purview
of simplification of Traffic Accounts procedure.
The check of Railway Material Traffic notes and the bills should be done
concurrently in respect of the stations selected for audit. The RMC notes should be compared
with the entries in the forwarded abstracts to see that all RMC notes have been received. The
RMC notes should be examined with reference to the list of officers authorised to issue RMC
notes furnished by CCM to the Financial Adviser and Chief Accounts Officer to see that the
consignments have been booked by a Railway consignor to a Railway consignee and the
nature of the material booked is prima facie Railway material. If the consignee or consignor
is not a Railway official, it should be verified whether charges have been calculated at public
tariff rate.
The correctness of the freight should be checked with reference to
kilometrage, weight and rates prescribed for the R.M. Traffic and the amount traced into the
carriage bills.
1136. Comparison of Outward and Inward Returns(RMC): Comparison of outward and
inward returns should be done in the fourth following month. The inward abstracts and
invoices relating to local traffic received from the stations should be compared first to ensure
that all the invoices are received. The inward abstracts should then be compared with the
forwarded abstracts to see that R.M.C. note has been received in respect of each invoice
booked on R.M.C.
In the case of foreign traffic, the comparison of forwarded abstracts should be
done with inward division sheets.
1137. Review of Registers pertaining to Railway Material Traffic maintained by
Accounts Office: It should be seen that the total of R.M.Traffic as per forwarded abstracts is
tallied with the bills preferred and necessary certificate of reconciliation is recorded in the
Bills Register maintained by the Accounts Office. It should also be seen that
acknowledgements of receipt of bills for the total freight charges billed for as per Bills
Register in respect of the selected month have been received from the Financial Adviser and
Chief Accounts Officer (Expenditure) and Divisional Accounts Officers.
A general review of the following registers maintained in the Accounts Office
pertaining to R.M.Traffic should be conducted to see that there are no old items and prompt
and adequate action is taken by the Accounts Office.
1. Register of missing or excess RMC notes.
2. Register of missing invoices.
3. Register of unaccounted for invoices relating to Railway Material Traffic.
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1138. Check of Wagon Registration Fees: The statement of wagon registration fees
collected, refunded/forfeited in respect of stations selected for audit should be checked with
reference to the debits and credits appearing in the balance sheets of those stations. In respect
of the amounts refunded, it should be seen that the amount had been originally deposited and
that the receipt given to the party is collected and sent in support of the credit taken.
1139. Wharfage and demurrage returns: The wharfage and demurrage returns of the
stations selected for audit should be checked on the lines indicated in Para 2343-A.II and the
total of the returns checked and traced into the balance sheets.
1140. Review of Debits Withdrawn: A review of the debits withdrawn should be conducted
to see that:
1) the grounds of withdrawal in each case are valid and orders of competent authority
have been obtained for the withdrawal,
2) the debits have not been raised without making necessary enquiries where so required
under the procedure laid down,
3) the registers are maintained properly in the prescribed form and are reviewed
periodically by the Gazetted Officers, and
4) the debits withdrawn on account of error sheets wrongly issued due to the mistakes of
the Accounts Office are not excessively heavy.
The position of outstandings should also be examined to see that they are not
old and heavy and adequate action is taken to clear the same.
(Authority: Para 3214-A-II).
1141. Review of exempted debits register: The register maintained in the Accounts Office
should be reviewed to see that there is no tendency on the part of the station staff to take
undue advantage of the codal provision. It should also be seen that the register is reviewed
monthly by the Accounts Officer.
(Para 3203-A-II).
1142. Audit of Goods Balance Sheet: The accounts of a station selected for audit should be
checked completely with reference to its balance sheet both in respect of received and
forwarded traffic.
a) Paid outward - Local and Foreign: The correctness of the debits should be checked with
reference to the machine abstracts (also called "paid statements") compiled by the Accounts
Office.
b) To-pay inward - Local and Foreign: The correctness of the debits taken in the balance
sheet of the stations selected for monthly audit should be checked with reference to the
machine abstracts converted by the stations into their inward abstracts and submitted to the
Accounts Office along with the station balance sheets.
c) Other items accounted for in the balance sheet should be checked with reference to the
connected returns.
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(Authority: Chapter XXVII - A-II)
1143. Refund lists and Overcharge Sheets (Coaching and Goods): On receipt of the
balance sheets of the stations selected for audit, the connected refund lists including voluntary
refunds and overcharge sheets should be obtained and checked.
Special attention should be paid to the refunds made in respect of traffic
originating from out-agencies. It should be seen that whenever a refund is allowed, reduction
is also made in the commission etc. paid to the out-agency. Besides, it should be seen that a
large number of overcharges or undercharges have not resulted in respect of traffic
originating from a particular out-agency.
(Paras 2403 to 2411 A.II and Para 179 of Railway Audit Manual).
1144. Miscellaneous: (1). Remission and refund of wharfage and demurrage charges: The
audit of remission of wharfage and demurrage charges by C.C.M. is done by Traffic Audit
Section. The audit of remission orders issued by the Divisional Railway Managers is done by
the respective Divisional Audit Offices. The following procedure is prescribed in regard to
selection, requisition, audit, etc. of cases of remissions and refunds of wharfage and
demurrage charges.
(2). Since selection of cases is to be done by Principal Director of Audit at his/her
discretion, the registers of remissions and refunds of wharfage and demurrage charges
maintained in the Office of the Financial Adviser and Chief Accounts Officer(Traffic),
Secunderabad, are submitted to the Principal Director of Audit by Traffic Audit(Local)
Section for his personal selection. (P.O.O. No.3 dated 17.05.1973).
(3). As cases of remissions of wharfage and demurrage are available with the
Divisional Commercial Managers, Senior Audit Officer/Audit Officer(Traffic Headquarters)
will place requisitions for audit of remission cases selected for audit on Senior Accounts
Officer(Traffic) and endorse copies thereof to Divisional Audit Officers and also to
Divisional Commercial Managers to make available the required cases to the Divisional
Audit Officer concerned for conducting audit. To facilitate timely completion of the work by
divisions, viz. in the fourth following month, requisitions will be sent by 15
th
of the third
following month. Further correspondence for obtaining the cases for audit etc. will be
conducted by the Divisional Audit Officers concerned with the Senior Accounts
Officer(Traffic)Secunderabad/Divisional Commercial Managers of the divisions.
(4). On receipt of the files, the same will be audited by the divisions as per extant
orders and current review conducted to the extent prescribed and outstanding cases, if any,
will be reported to Senior Audit Officer/Audit Officer(Traffic Headquarters) by 25
th
of every
month to enable him to exhibit the same against Senior Accounts Officer(Traffic) in the
statement of non-availability of vouchers and in the return to Coordination Section.
(5). After completion of audit, results will be submitted to Principal Director of
Audit, endorsing a copy of the objection to Senior Audit Officer/Audit Officer(Traffic
Headquarters). Even if there is no objection/audit note on the subject, the Divisional Audit
Officers should send a 'nil' return to Senior Audit Officer/Audit Officer(Traffic Headquarters)
for the purpose of exhibition of objections issued against Senior Accounts Officer (Traffic) in
the statistics of objections. The issue of audit notes to Senior Accounts Officer (Traffic),
Secunderabad and their finalisation will be done by the respective Divisional Audit Officer.
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This item should be included under monthly item in the Progress Report as well as in their
programme of audit of 'Expenditure Section' and Original Audit and Post Review of this item
should be arranged by the Section Officer/Asstt. Audit Officer/Divisional Audit Officer.
(6). In addition, the Divisional Audit Officers should also carry out an overall
review of the list of remissions. The special investigation of frequent remissions of big
amounts in favour of certain parties may be conducted by reviewing individual remission
cases settled at Divisional Commercial Managers level in the previous quarter, party-wise,
cause-wise and station-wise. If large scale remissions are noticed in favour of certain parties,
the matter is to be taken up with the Railway Administration. For this purpose, results of the
special investigation should be submitted to Principal Director of Audit/Senior Audit
Officer/Audit Officer(Traffic Headquarters) for taking up the matter with the Railway
Administration.
(Authority: P.O.O. No.3(Secret) dated 17.5.1973).
(See Para 176 of Railway Audit Manual and 211 A II).
1145. Audit of cases relating to remission and refund of wharfage and demurrage
charges: While auditing the cases, it should be seen that the sanctions to the waiver of
wharfage/demurrage charges have been accorded by competent authorities, financial
concurrence has been obtained wherever necessary and the reasons for waiver are recorded.
In the case of refund of wharfage and demurrage charges, it should be seen
that:
i) the amount of wharfage/demurrage charges has been accounted for by the station in
the connected return,
ii) the arithmetical calculations of the amount refunded are correct,
iii) the claim has been preferred in time, and
iv) the refund is made under the sanction of the competent authority with the concurrence
of Accounts Department wherever necessary.
The circumstances under which wharfage and demurrage charges are usually
waived by the Railway Administration are indicated below:
1. Delays in delivery occasioned by damaged condition of goods or disputes
relating to weight and charges or other causes beyond the consignee's control.
2. Improbability of the realisation of the full dues by auctioning the
consignments due to their low value.
3. To avoid litigation or compensation.
4. If the charges are payable by other departments of the Railway or Government
Departments.
5. When the delay in booking arises out of priority restriction.
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6. Dispute between consignors and consignees, fall in market price, complaints
regarding non-receipt of advice of arrival of goods etc.
(Railway Board's letter No.3214-TT of 7.6.1945).
The Railway Administration has laid down the following broad principles for
the guidance of Divisional Railway Managers in dealing with applications for waiver of
heavy amounts of wharfage and demurrage charges.
i) In all cases of strikes, lock-outs, lay offs, etc. where it is known from the
beginning that considerable amounts of demurrage and wharfage charges beyond the powers
delegated to the Divisional Railway Managers for sanction of waiver are involved, the
Divisional Railway Managers should keep the Chief Commercial Manager personally
apprised of the position and also the decision taken by the Divisional Railway Managers in
the matter of waiver of demurrage and wharfage charges so that a review could be made at
Chief Commercial Manager's level, if necessary.
ii) Cases beyond the powers of the Divisional Railway Managers should be
forwarded to the Chief Commercial Manager with full details of the case and the
recommendation of the Divisional Railway Managers for waiver of the amounts involved
mentioning at the same time the total amount involved including those under the powers of
the Divisional Officers.
iii) In the case of strikes, lock-outs, lay offs etc. in the factories or industrial
sidings, the Division should impose an immediate restriction on booking to such factories or
sidings so that heavy inflow of traffic which cannot be worked into the siding may be
avoided.
iv) A suitable clause should be provided in the agreement to levy demurrage
charges on wagons detained in the yard awaiting placement in the sidings, in the event of a
situation arising out of strikes, lock-outs, lay-offs etc.
(Chief Commercial Manager's Circular No.C.200/GI/P of 19.12.1966).
1146. Compensation for goods lost, damaged etc.: (1). The selection of compensation
claims cases is made from the monthly statement of pay orders issued by the Chief
Commercial Manager(Claims) a copy of which is received through the Financial Adviser and
Chief Accounts Officer(Traffic). Selection of cases is made by the Principal Director of
Audit. Out of the cases selected, all cases (other than court cases) with value of Rs. 40,000/-
and above will be reviewed, cent percent by Sr. Audit Officers / Audit Officers; Rs. 39,999/-
and below upto and inclusion of Rs. 10,000/-, 50% by Section Officer / Asst. Audit Officer;
below Rs. 10,000/- above Rs. 5,000/- - 25% by Sr. Auditor / Auditor and below Rs. 5,000/- -
10% by Auditor.
(2). The cases should be reviewed on the lines indicated in Para 2414 AII and the
amount paid verified with reference to the paid voucher.
(3). Court cases relating to compensation claims decided against the Railways
should be reviewed to the extent prescribed.
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(4). The number of cases to be reviewed as per the prescribed percentage are
counted against the total number of cases fixed for audit by the Principal Director of Audit.
(5). All selected court cases will be reviewed by Section Officer/Asstt. Audit
Officer/Branch Officer according to the monetary limit prescribed.
(6). The extent of review of the cases by Branch Officer and Asstt. Audit
Officer/Section Officer mentioned above is in addition to the usual quantum of original audit,
post review and current review required to be done by them.
(7). The following points should, inter alia, be seen:
i. Delays in conduct of litigation.
ii. Delays in taking other steps in the course of a case e.g., filing affidavit or
documents, production of evidence, dealing with references from railway
pleaders etc.
iii. Inability to prove good cases.
iv. Insufficient or incorrect advice given by lawyers including the written
statement not being drawn up properly covering all points.
v. Slackness of work in Claims Branch.
vi. Non-availability or non-production of relevant records.
vii. Faults of the Railway Staff
viii. Absence of key witness
ix. Non-appearance of the advocate
x. Adjournment not being granted by the court, and
xi. Delay in satisfying the court decrees resulting in execution and consequent
extra expenditure.
(8). A record of all court cases reviewed by the Section Officer/Asstt. Audit
Officer and Branch Officer should be maintained in the Selection Register in the following
proforma;
1. S.No. in the Register.
2. C.C.M's file No., Invoice No., R.R.No. and date, station from and to, nature of
consignments.
3. Brief cause of the claim/suit
4. Whether decreed or compromised out of court.
5. Amount of compensation and month of payment.
6. Legal expenses
7. Special features noticed e.g., remarks regarding:
i. Whether suit could have been avoided
ii. Failure of advocate.
iii. Faults of the Railway staff
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iv. Absence of key witness in court
v. Delays in satisfying court decrees resulting in extra expenditure.
vi. Non-availability or non-production of relevant records etc.
vii. Whether appeal has been preferred or not etc.
viii. Reference to Audit Note/Special letter etc., and
ix. Dated initials of the individual conducting the original audit.
Important results of the review should be submitted to Principal Director of
Audit.
(9). In addition to the monthly audit of claims cases, as prescribed above, the
following further review should be undertaken:
i. A review of the reports of the Claims Prevention Branch sent to the Railway Board.
ii. A review of the 'cause-wise' and 'commodity-wise' statements of the number of claims
and amounts paid, submitted by the Railway Administration to the Railway Board and
the cause-wise, commodity-wise and originating Railway-wise statements received
from other Railways(Paying Railways) (ADAI(R)'s letter No.53 RAI-472/T/17-55/71
dated 11.1.1972), and
iii. A review of the heavy incidence of claims relating to parcels or goods booked at
particular forwarding stations. For the purpose of this review, a note should be kept
each month of the incidence of claims forwarding station-wise. At the time of the
review, if the incidence of claim in regard to goods or parcels booked at a particular
station is seen to have been heavy, all the claims cases selected should be reviewed in
detail afresh, whether or not some or all of them have already come under audit.
(10). Claims cases upto Rs.200/- each are settled by Station Masters, Commercial
Inspectors, Goods Inspectors etc. of certain selected stations. During the local inspection of
these stations by the Traffic Audit Inspection party, it should be seen that adequate action is
taken by Station Masters to investigate and settle the claims and that endorsements of claims
paid are made in the delivery books.
(11). The scope of local audit also includes check of claims originating at the
stations locally inspected. For this purpose, the inspection party should send a list of claims
cases noted by them to the Traffic Audit Section on completion of inspection of the station.
Traffic Audit Section should scrutinise these cases in detail.
(CAG's letter No.2301/RAI-8-7/66 dated 27.8.1966 and No.3430-RAI/8-7/66
KWII dated 19.11.1966).
1147. Rate circulars and Tariff charges: All cases of station-to-station rates introduced by
the Railway Administration and the fixation and revision of rates of siding charges should be
checked. Other rates introduced through rate circulars should be checked monthly to the
extent prescribed.
It should be seen from the rate notified in Local Rate Advices (LRAs) and
Through Rate Circulars (TRCs) that the maximum and minimum rates for goods and
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coaching traffic laid down by the Government are not infringed. It should also be seen that
prior Accounts concurrence is obtained before the rates are introduced and there is adequate
justification for introduction of these rates.
All amendments to Tariffs and all Rate Circulars issued by the Railway
Administration should be audited by Traffic Audit Section. For this purpose, a separate
'Selection Register' should be maintained, separate folios being allotted for recording station-
to-station rates, container rates, freight forwarder rates, siding charges, wharfage charges etc.
All relevant particulars such as date of introduction, period of currency and due date of
revision should be entered in the register. The files of Railway Administration should be
called for and reviewed before the sanctions are admitted in Audit. The following points may
be seen in particular:
i. Whether the basic data relating to loadability of wagons, floor area, densities etc. on
which station-to-station rates are fixed, are acceptable.
ii. The correct market value of the commodity is taken into account while giving
concessional rates of freight.
iii. In cases of upward revision of freight rates, there has been no avoidable delay in issue
of notification, and
iv. Concessional rates are kept under review constantly for timely revision or withdrawal.
In cases of special station-to-station and other reduced rates, specifically
intended to attract more traffic, it should be seen whether the anticipated increase in traffic
has actually materialised.
The items should be concurrently reviewed by Section Officer/Asstt. Audit
Officer/Branch Officer and results put up to Principal Director of Audit. Reference to Audit
Note/Special letter issued should be given in the Register.
The cases should be reviewed again when reviews, if any, prescribed by the
Railway Board, are conducted by the Railway Administration and also at the time of revision
of extension of the rates.
This should be entered in the Selection Register/Progress Report maintained
by Traffic Audit Section.
Notifications by the Railway Administration of rates/tariff charges introduced by the
Railway Board.
It should be ensured that the rates are notified by the Railway Administration
correctly and without delay. For this purpose, a Register should be maintained
to record the rates/amendments to tariffs introduced by the Railway Board and
to watch the issue of notifications by the Railway Administration.
The receipt of advice of audit from the D.A.I.(R) should be watched.
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1148. Handling and transhipment bills: Handling and transhipment bills, if any, in respect
of the stations selected for audit should be completely audited. Handling bill is prepared
separately for Coaching and Goods Traffic. The correctness of the weight handled by the
contractor in regard to local and foreign traffic, as indicated in the handling bills, is verified
by the Local and Foreign Traffic Audit Sections. The instructions contained in Paras 3002 to
3004 and 3006 A.II should be borne in mind while auditing these bills.
In the case of forwarded 'paid' traffic, the weight handled should be compared
with the weight recorded in the Paid Parcels Cash Book. As abstracts and summaries are not
received from the receiving station for the paid parcels traffic, the weight handled by the
contractor doing the handling work at the station will not be available in the Accounts Office
for check of weight shown by the Contractors in their handling bills for inward paid parcels
traffic received at the station. In these cases, the Accounts Office arranges payment
provisionally to the extent of 90% on the basis of the weights certified by the Commercial
authorities. The balance amount of 10% is paid only after the weight lifted is checked by the
Travelling Inspectors of Accounts with reference to the entries in the delivery book for
inward paid parcel. In respect of bills for the balance 10% passed in the month under audit of
stations selected, it should also be seen that the weight shown by the contractors in the bills is
certified by the Travelling Inspectors of Accounts.
The Traffic Inspection Section should ensure the correctness of the Travelling
Inspector of Account's certificate by verification of the particulars of handling bills (to be
obtained from Accounts Office) locally during inspection.
As regards handling bills relating to goods traffic, the weight shown in the
handling bills should be checked with reference to machine prepared paid statements for
forwarded traffic and converted machine abstracts for received traffic.
The rates at which the claim is preferred should be checked with reference to
the agreement. Opportunity may be taken to review the rates paid to the Station Master and
outsiders from time to time to find out whether the rates allowed for the same kind of work at
the same station or at stations in the same vicinity do not vary from each other to a
considerable extent. The connected pay orders for payment of the handling and transhipment
bills should also be called for. It should be seen that the amount of the pay order agrees with
the amount finally passed by Accounts Office. The usual checks prescribed for the pay
orders viz. that there is a proper acquittance for the amount paid, receipts for all gross
amounts exceeding Rs.500/- are stamped etc. should be exercised in respect of these pay
orders by Local Traffic Audit Section.
In respect of transhipment points, handling bills should be reviewed by
sending local audit party to such points, besides the check exercised in central audit. Some
stations having transhipment points should be selected for local audit every year. Such
transhipment stations need not always be supervised by a Branch Officer.
Transhipment sheds located away from the stations should be included in the
list of stations for the purpose of selection for audit and inspection.
1149. Check of crane charges: A list of cranes stabled at stations on this Railway is
prepared and the return of crane hire and haulage charges relating to selected cranes is
checked in audit monthly. The following checks should be exercised.
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i) The return has been prepared in the prescribed form and all the required details are
correctly furnished.
ii) The use of the crane on each of the days or the movement of the crane if it was
working at any other station is given for all the dates of the month. If particulars of
working of the crane on any day are not furnished in the return, the reason therefor
should be ascertained.
iii) In respect of such days on which the crane has been shown as working at some station
other than the stabling station, a return of crane hire and haulage charges has been
received from the station at which the crane was used and necessary remarks in this
regard have been passed in the return received from the crane stabling station against
the relevant dates.
iv) The 'Accounts foils' of the money receipts for crane hire and haulage charges are
consecutive in number and if any money receipt is missing, the same should be called
for. It should also be seen that the receipts for all the amounts accounted for in the
return have been correctly received.
v) The charges collected at the stabling stations have been correctly accounted for in the
balance sheet of the station where the crane is stabled, and
vi) The amount of crane hire and haulage charges accounted for by the outstations where
cranes are used agree with the particulars given in the summary of crane charges
submitted by the stabling stations concerned with a view to ensuring that all the
amounts collected at other stations have been correctly accounted for by those
stations.
(Para 2344 A II).
1150. Review of Reports of Station Inspections by Travelling Inspectors of Accounts
and Accounts Officers: All the reports of Travelling Inspectors of Accounts and Accounts
Officers closed in a month as per their list of advices of closure of such reports should be
reviewed in the following month to examine whether there is any important lacuna in the
system and whether the system is working with reasonable efficiency. It should also be seen
that necessary action is taken on all the points noticed by the Inspecting Officers and
Travelling Inspectors of Accounts.
The results of the review should be submitted to the Branch Officer. Details
of the cases reviewed should be kept in the Selection Register. Stations having large number
of irregularities should be preferred for local inspection and, if considered necessary, should
be taken up for local audit in addition to the quantum prescribed. For this purpose,
irregularities reported by the Travelling Inspectors of Accounts and Accounts Officers, which
require examination locally should be entered in a register maintained for the purpose and the
register sent to Traffic Audit Inspection Section quarterly for further action.
1151. Journal Vouchers including adjustment mema: The selected J ournal Vouchers
should be checked with reference to the supporting documents and traced to the extent
prescribed. The instructions contained in Para 377 of Railway Audit Manual and Para 620
of Chapter VI (Expenditure Audit) should be borne in mind while auditing the J ournal
Vouchers relating to Traffic Accounts also. Audit is done in the third following month.
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1152. Pay orders and other vouchers not falling under any other category: Bills relating
to refund of deposits for reserved carriages, refund of security deposits etc. fall under this
category. The instructions contained in Para 280 of Railway Audit Manual should be borne
in mind while auditing these vouchers.
1153. Rebate of freight: The rebate statements should be checked to see that:
1. the claim has been preferred within six months of the original booking,
2. the statements have been certified by the Commercial Inspector and countersigned by
the Deputy Commercial Manager,
3. the original invoice has been accounted for,
4. the rebooked weight is not more than the weight originally booked, and
5. the rate charged and the rate should be are correct.
1154. Review of Suspense Accounts: The suspense accounts mentioned below maintained in
the Traffic Accounts Branch are grouped into units and the selected units are audited
monthly.
1. Traffic Accounts
2. Other Railways
3. Deposit Miscellaneous including Deposit Private Companies
4. Miscellaneous Advances - Revenue
5. Demands Payable
6. Deposits and Advances
Suspense Registers - M - Remittances - Accounts with States, Accounts with
Reserve Bank and Transfers Divisional are maintained centrally by the Books Section of
Financial Adviser and Chief Accounts Officer's Office and reviewed by Books and Budget
It should be seen whether the balances under the suspense heads are reconciled
with General Books every month. The instructions contained in Chapter VI of the Indian
Railway Code for the Accounts Department Part-I and Para 371 of Railway Audit Manual
should be borne in mind while reviewing the suspense registers maintained in the Traffic
Accounts Branch.
While reviewing the Deposit Miscellaneous Register, it should particularly be
seen that the amounts of the pay orders authenticated by the Accounts Office do not at any
time exceed the deposits received from the South Central Railway Employees Co-operative
Society, Secunderabad. Along with the review of Deposit Miscellaneous Register, the
proforma account of deposits received and pay orders authenticated should be checked. It
should be seen that the mema of paid pay orders are received in the Accounts Office
regularly, duly accepted by the Society and that necessary adjustment of the amounts covered
by the paid pay orders is made to the deposit head without delay.
(See Para 381 of Railway Audit Manual).
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1155.Audit of Postal Bills: The following bills are preferred against the Postal Department
for the carriage of mail bags.
1. Regular accommodation bills preferred half-yearly for:
1. Haulage charges of postal and non-postal vehicles or compartments, and
2. Regular conveyance of mail bags under weighment system (carried by Railway and
mail peons).
2. Bills preferred quarterly for:
i. Extra accommodation provided to the Postal Department in Railway compartments
requisitioned, and
ii. Occasional despatches by weighment system.
The selected bill of each category should be checked every half-year. It
should be seen that the provisions of Chapter XVI of the Indian Railway Code for the Traffic
Department(Commercial) Revised Edition 1993 have been observed and that the bills have
been preferred according to the current rates. The accommodation charged for in the bills
rendered should be checked with the accommodation actually provided as per statement
furnished by the Station Master/Divisional Railway Managers. Any abnormal delay in the
recovery of charges should be commented upon.
1156. Cashier's Station Cash Book: All the cash remittance notes received from the stations
are compared with the cash check sheets to verify the accuracy of the amounts
acknowledged, to the extent prescribed. Total of the individual sheets is proved and checked
with the summary sheet which is then checked with the cash book.
The vouchers mentioned in the cash remittance notes should be scrutinised
generally to see that they are in order and have been tendered by parties duly authorised to do
so and for the purposes permitted under the rules. It should be examined whether there has
been any delay on the part of the stations in remitting the cash collections, whether the cash
remitted by the stations has been duly acknowledged by the cashier and currently accounted
for in the traffic check sheets. The action taken regarding shortages in the station
remittances, if any, should also be seen.
Payments into the bank should be verified with the receipts.
1157. Write off Registers: All write off cases selected should be reviewed monthly. In
reviewing these cases, it should be seen that:
i. the sanctions accorded are within the powers of the sanctioning authority and the
reasons for write off are adequate,
ii. the write off is not due to any error or defect in the system or procedure, and
iii. necessary adjustments consequent on the amounts written off have been properly
carried out.
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Auction sale statements, if any, in respect of the write off cases selected for
audit should also be called for and reviewed. Instructions for the conduct of auction sale are
contained in Para 2235 of the Indian Railway (Commercial) Manual. It should be seen in
checking auction sale statements that:
i. there is no unreasonable delay in the disposal of the consignments, and
ii. the freight and wharfage charges outstanding at the rebooking station also have been
taken into account in arriving at the amount written off.
1158. Statement of siding charges: A list of all sidings on this Railway together with rates
of siding charges fixed and the dates from which these are effective is maintained in the
section. The required number of sidings, the accounts of which are to be audited, is selected
every month from this list. This list should be kept up-to-date with reference to the rate
circulars. In March every year, the Divisional Audit Officers should furnish a list of sidings
pertaining to their division to Traffic Audit Section for comparison with the list maintained
by that section.
The following points should be seen in the audit of sidings statements:
i. An agreement exists for each siding.
ii. The charges have been calculated correctly according to the agreement and the
rules in force.
iii. In the case of detention to wagons beyond the free time, charges have been levied.
iv. As and when a siding is used under the proper sanction by a department, firm or
merchant other than the one for whom it was originally constructed, remuneration
charges are recovered at the agreed rates and paid to the owner of the sidings, after
deducting the commission.
(Note: If any bill for payment of remuneration charges is selected for audit
(miscellaneous pay orders), it should be ensured that the amount is paid to the
parties concerned after deducting necessary commission charges).
v. The checked statement should be traced into the Register of Siding Charges
maintained in the Accounts Office and the amount shown in the siding statement
has been correctly taken to debit in the Balance Sheet. Whenever siding charges
are paid by credit notes, the bills should be checked with reference to the Register
of Siding Charges.
vi. The siding charges are revised correctly once in three years as per Railway
Board's orders contained in their letter No.4694-TC.VII of 10.10.1958 and action
for the revision is initiated to fix the siding charges atleast six months before the
revision becomes due.
(Chapter XVIII of Indian Railway Code for the Traffic Department
(Commercial) 1993 Revised Edition and Paras 2346 - 2348 A.II)
1159. Register of serious irregularities, losses and overpayments waived: The registers
maintained in the Accounts Office should be reviewed to see whether action taken by the
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Administration is adequate and whether safe-guards exist to obviate the recurrence of the
irregularity. The results of the review should be recorded in the Selection Register and the
Register submitted to the Branch Officer.
(Paras 9, 475 to 478 of Railway Audit Manual).
1160. Register of Objectionable Items and Provisional Payments: The general
instructions contained in Para 283 of Railway Audit Manual should be followed in reviewing
the registers maintained in the Traffic Accounts Branch. The results of the review should be
recorded in the Selection Register and the register submitted to the Branch Officer.
1161. Review of tenders and contracts: The contracts entered into by the Chief Commercial
Manager relating to handling of goods, out-agencies etc. are reviewed by the Traffic Audit
Section. (The catering/vending contracts executed by the Dy. Commercial Manager/Chief
Commercial Manager are reviewed by the respective Expenditure (Division)/ Expenditure
Headquarters Sections respectively).
Awards given by Railway Rates Tribunal should be reviewed. A separate
register should be maintained for this purpose. The position may also be reviewed during
inspection of Chief Commercial Manager's office. This may be entered as a half-yearly item
in the Selection Register/Progress Report maintained by Traffic Audit Section(and in the list
of items to be seen during inspections maintained by Inspection Headquarters Section).
Instructions contained in Paras 606 and 607 of Chapter VI - Expenditure
Audit may be seen.
Note: Orders regarding review of implementation of contracts do not apply to handling
contracts as it is seen at the time of monthly audit of handling bills of stations selected
for audit that the rates paid are in accordance with the agreement.
(C.A.'s(now PDA) orders dated 21.9.1961 at Page 81 of File
No.Au/TL/344/Vol.I).
1162. Traffic Book and Accounts Office Balance Sheet: Traffic book selected is checked
to see that the postings are correct and complete. It should be verified that the balances under
the heads 'Traffic Accounts', 'Foreign Railways' and 'Deposit Private Companies' have been
reconciled with the balances appearing in the General Books.
Any old outstanding noticed under the heads 'Foreign Railways' and 'Deposit
Private Companies' should be pointed out. In the analysis of Traffic Book Balances in Part-
'B', it should be seen that resulting balances tally with the unpaid balances of Account
Current.
The Accounts Office Balance Sheet should be reviewed to see that the
outstanding items are current and efficient and that adjustments relate to bonafide traffic
accounts transactions. Outstandings remaining uncleared for over six months should be taken
up. It should also be seen that
i. a reconciliation has been made between the total amount of the vouchers received by
the stations concerned and the total amounts of the vouchers received as a whole from
stations,
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ii. the debits of 'Traffic Account' are correctly posted from the Bills Register, and
iii. cash and transfer clearances are correctly posted from cash abstract book and J ournal
Entry Registers.
(Para 178 of Railway Audit Manual and Chapters XXIX and XXXII AII).
1163. Terminal and other taxes: The terminal and other taxes levied on rail borne traffic
fall into two categories:
a) Taxes levied by the local bodies and States immediately before the commencement of
the Constitution of India in respect of which net proceeds are not required to be
certified by the Comptroller and Auditor General of India; and
b) Taxes levied and collected by the Government of India but assigned to the States
under the provisions of Article 269(1) of the Constitution of India, the 'net proceeds'
of which are to be ascertained and certified by the Comptroller and Auditor General
of India.
In regard to the taxes covered by item (a) above, the general principles
enunciated in Para 178(a) of the Railway Audit Manual are applicable. The amount of tax
paid to each local body etc. should be checked with reference to the monthly summary
(referred to in Para 2607 of the Indian Railway Code for the Accounts Department Part -III)
so as to cover all the local bodies etc. The statement of tax payable for the month should be
generally reviewed with reference to the statements printed by the computer or compiled
manually. In the course of audit of selected station accounts, it should be seen that the
amounts of tax collected are correctly taken into account in the statement printed by the
computer or compiled manually.
No terminal tax is levied on goods traffic at any of the stations on this
Railway(CCS's letter No.C.443/1 dated 7.8.1967).
As regards taxes falling under category (b) mentioned above, the following
procedure should be followed:
i) Printed Card Tickets: While checking the passenger classification for printed tickets, all
entries ('station to') having pilgrim tax (whether falling within the entries selected for audit or
not) should be traced into the Pilgrim Tax Statement printed by the computer. If it is ensured
that all returns have been taken into account for compilation, no check of the correctness of
the statement printed by the computer itself is required. If any return is not included in the
compilation due to delayed receipt, it will be necessary to ensure that such returns are
accounted for manually, in the same month or next month(s). The tracing of Pilgrim Tax
should be done in respect of all passenger classification of printed tickets which are
accounted for manually by the Accounts Office due to delay in receipt.
ii) Check and accountal of Blank Paper Tickets: It should be seen that the Blank Paper
Tickets issued by the stations falling within the unit selected to terminal tax stations are
accounted for in the Terminal Tax Statements of the month in which the tickets are issued. If
omission is noticed in respect of any station, the passenger classification for the entire year in
respect of that station should be checked to see that the omission is not repeated in other
months too.
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The Railway Administrations are required to furnish the Tax Statement for
certification by the end of the second following month to which the statement pertains. Any
delay in this regard should be taken up with the Financial Adviser and Chief Accounts
Officer personally. The statements should be certified within a period of thirty days of their
receipt in this office. Difficulties in obtaining the documents etc. should be brought to the
notice of the Branch Officer.
An annual certificate is required to be submitted by each forwarding Railway
along with the monthly certificate for March to the receiving Railway on which the notified
station is situated to enable the latter to submit a consolidated certificate to the Ministry of
Railways. This annual certificate should be checked with reference to the monthly
certificates. The annual certificate should be given only after ensuring that no station returns
for any month of the year covered by the certificate are omitted by the Railway
Administration and that all collections made during the year to which the certificate pertains
are taken into account for the purpose of certification. It should also be seen that Financial
Adviser and Chief Accounts Officer records a certificate in the annual accounts that all the
station returns are accounted for in the year's Terminal Tax Account to which the return
relates.
Terminal tax proceeds are finally required to be certified by Comptroller and
Auditor General of India as a constitutional responsibility. The monthly statements are,
therefore, required to be signed by the Financial Adviser and Chief Accounts Officer and
Principal Director of Audit personally in order to give these statements proper authenticity.
Copies of monthly statements need not, however, be sent to the Comptroller and Auditor
General of India(Railways). The Railway in which the notified area is situated has been
made responsible by the Railway Board for paying the correct amount to the State concerned.
It should be ensured that the amount of Terminal Tax certified by the Comptroller and
Auditor General of India has been fully assigned to the States concerned.
For this purpose, a register is to be kept in which the net proceeds payable as
per the certificate issued by Comptroller and Auditor General of India should be entered
showing also under appropriate columns the details of the actual adjustments of the amounts.
It should be got confirmed from the Accountant General of the State concerned that the
assignments made by paying Railways to the State are duly credited to the revenues of the
State. This fact should also be recorded in the register maintained. Within three months of
the issue of certificate by Comptroller and Auditor General of India, copy of which is also
sent to the Principal Director of Audit concerned, a report should be sent to Comptroller and
Auditor General of India certifying that the amount actually assigned to the State by Railways
was in accordance with Comptroller and Auditor General of India's certificate and that the
adjustments of the transactions was also duly verified. Provisional payments made from time
to time pending the issue of final certification by Comptroller and Auditor General of India
should be duly analysed according to the year of collection and payments relating to each
year are entered promptly in the register.
On this Railway, there are at present no notified stations where a terminal tax
is leviable which require certification. However, the statements of terminal tax collected in
respect of stations situated on other Railways are received and certified on the lines indicated
above.
(Para 178 of Railway Audit Manual and Paras 2138, 2601 to 2608 - AII).
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(CAG's letter Nos. 3114-RAI/7-3/64 dated 16.10.1964, 6237-RAI/T/17-74/69
dated 22.12.1969, 3614-26 RAI/T/17-6/70 dated 10.9.1970, 4372-RAI/T/17/74/69 dated
7.11.1970, 1558-RAI/T/17-80/65 dated 'nil' forwarding Railway Board's letter No.F(X)I-
66/IX-19/3 dated 12.4.1971 and 1941-160-RAI/8-6/71 dated 10.6.1971 and Para 178 of
Railway Audit Manual and Paras 2138, 2601 to 2608 - AII).
1164. Audit of Tolls: No toll charges are collected on this Railway at present.
1165. Capital and Revenue Accounts: The statements of earnings under Abstracts X, Y and
Z included in the Capital and Revenue Accounts should be checked with reference to the
Traffic Receipt Book maintained in Traffic Book Section of the Accounts Office.
1166. Working of the Accounts Department: Instructions contained in Para 135 of
Railway Audit Manual and Para 519 of Office Manual may please be borne in mind.
1167. Proforma Accounts of work done on behalf of other Government Departments: A
proforma account showing commission charges earned and expenditure incurred is prepared
by the Accounts Office when tax is collected on behalf of other Government Departments
and outside bodies. It should be seen whether the Administration has reviewed the adequacy
of the commission charges for rendering the service. The results of such examination by the
Administration should be reviewed to see that all incidental expenses have been taken into
account and that the Railway does not suffer any loss in rendering the service.
1168. Apportionment of earnings between main and worked lines: There are no worked
lines on the South Central Railway. (Dy.CAO's letter No.A/GF/Gen/069/SCZ dated
10.8.1967).
1169. Pooling Traffic Arrangements: Such arrangements wherever existing are to be
scrutinised with a view to seeing that the interests of Government as a whole are not
appreciably affected and that the distribution of earnings between the parties concerned is
done on a fair and equitable basis. For this purpose, the files of the Railway Administration
should also be reviewed to see whether over a period of years the arrangements have been
operated unfavourably to any party, justifying a revision of the terms originally agreed
upon(CAG's letter No.706-RAII/T/17-45/62 dated 21.3.1964).
NOTE: At present there are no pooling traffic arrangements involving South Central
Railway.
1170. Wagon Pool Accounts (i) Pakistan Railways (ii) Indian Railways: Audit of these
items is conducted by the Principal Director of Audit, Northern Railway(Dy.CA/N.Railway's
letter No.NFTA/8-9/61/II/13 dated 7.4.1962 to Dy.CA/SC and Dy.CA/SC letter No.TAL/344
dated 25.7.1963 to C&AG(R).
1171. Collection and delivery service-procedure for payment to contractors: Bills
preferred by street collection/delivery contractors should be checked in audit as and when a
station where the system is in force, is selected for monthly audit.
In the course of audit, bills should be checked to see that:
1. weight particulars in the contractor's bills tally with those in parcel way bills, invoices
or abstracts etc,
340
2. the rates charged are in accordance with those provided in the agreement, and
3. the arithmetical calculations are correct.
(CAG(R)'s letter No.3406-RAI/T/17-51/66 dated 19.8.1968).
1172. Audit of Cess on Coal: (1). It should be seen in the audit of invoices for money coal
traffic and of bills for 'weight only' coal traffic that 'LDCC' charges have been correctly
levied. The LDCC is not being levied for weight only coal. Hence one coal siding is
selected every month.
(2). The computerised LDCC statements which contain the code numbers of
forwarding stations and the receiving railways are to be called for monthly from the Accounts
Office. The number of forwarding stations (at present 8 stations on South Central Railway)
mentioned in the statements, both for money coal and weight only coal, should be counted
and selection obtained of the total number of stations. The weight shown in the statement is
to be checked with reference to the Invoices/Forwarding Notes of the selected station
received in the Accounts Office.
(3). The total amount paid as per statement should be checked by multiplying the
total weight shown therein with the rates of LDCC.
(4). It should also be seen that commission charges are realised correctly.
(5). In respect of 'To-pay' Traffic booked to foreign railways, the results of the
check conducted by the Audit Offices of the forwarding railways should be intimated to the
Audit Offices of the Railway receiving the coal. Discrepancies etc. noticed by Audit Offices
of the forwarding railways should be taken up with the Accounts counterparts and the final
results advised to the Audit Offices of the receiving railways to enable them to ensure that the
correct amount is paid by the receiving Railway Accounts Office(CAG's letter No.1706-
RAI/T/17-14/66 dated 12.5.1969).
Note: In the case of Local Traffic, this item is done annually.
1173. Miscellaneous Statements (Goods and Coaching): Miscellaneous statements (local
and foreign) should be checked to the extent prescribed against "f" under General Programme
of Audit (Foreign Traffic). It should be seen in audit that the statements have been correctly
prepared from the relevant returns and dealt with in the Accounts Office promptly and
correctly according to the extant rules and orders.
1. Statements of over-charges (voluntary refund statement) Coaching and Goods.
2. Statement of special credits (twice accounted for invoices/parcel way bills).
3. Paid-on charges statement -Coaching and Goods.
4. Advice of weighment of consignments.
5. Check of commission charges on credit notes.
6. Register of invoices relating to consignments of Fodder Traffic carried in famine
conditions.
The items mentioned at serial numbers 1 to 6 should be done in respect of
stations selected for audit.
341
Commission paid to Tourist Agents: This should be checked in respect of the Tourist agents
selected for audit.
i. Objection statement of Military Department and other than Military Department.
ii. Military rejection statements received from the Military Department together with the
credit afforded by the Controller of Defence Accounts.
iii. Loco Coal bills including transfer advices.
Audit of all the selected items mentioned in S.Nos. (i) to (iii) should be
completed during the course of the year.
a) Cartage bills parcels.
b) Out-agency bills parcel traffic.
c) Cartage adn out-agency bills (Goods).
The bills preferred by the out-agents should be checked with the outward and
inward returns submitted for local and foreign traffic.
(See also Paras 2501 to 2506 A-II)
1174. Net Balance Statement - Non-Government Railway: In addition to the accuracy of
the arithmetical calculation, it should be seen with reference to the division sheets or grand
summaries that the share due to each Railway has been correctly taken and that the net debits
and credits have been correctly arrived at.
1175. Review of concession register maintained in the Accounts Office: The Accounts
Office receives from the Divisional Commercial Managers specimen signatures of the Heads
of Educational Institutions and specimen of their seal together with the number of concession
order books supplied to institutions. These particulars are recorded in the register maintained
division-wise by the Coaching Local Section of the Accounts Office(Accounts Office P.O.O.
G/2 of 1961-62).
The registers should be reviewed to see that the instructions in the P.O.O. are
complied with and the discrepancies noticed should be taken up with the Accounts Office.
The working of the machinery in the Railway Administration to prevent
misuse of concessions in passenger fare etc. by unauthorised persons should be reviewed
half-yearly by Traffic Audit Section and during inspections by Divisional Audit (Inspection)
and Traffic Audit (Inspection) Sections.
This should be entered as a half-yearly item in the Selection Register/Progress
Report maintained by Traffic Audit Section and as one of the points to be looked into by
Divisional Audit Inspection and Traffic Audit Inspection Sections during their inspections.
1176. Check of Miscellaneous Cash Receipts: A register is maintained in the Accounts
Office for watching the prompt receipt of returns of miscellaneous cash in the prescribed
form from all departmental officials who are authorised to collect and remit cash. It should
be seen that:
1. the commencing number of Miscellaneous Receipt Transmit Note in the return
of a month received from the Department is in continuation of the closing number of the
342
previous month and is accounted for in consecutive order. If there are any missing numbers,
the matter should be taken up with the Accounts Office,
2. the amount shown in the third foil of the Miscellaneous Receipt Transmit Note
agrees with the figure shown in the return, and
3. the amount shown in the third foil of the Miscellaneous Receipt Note received
from the department should be checked with the amount indicated in the corresponding
second foil received from the station along with the Miscellaneous Cash Remittance Return
as well as in the Miscellaneous Cash Remittance Return itself to ensure that the amount
shown in the second and third foil of each Miscellaneous Receipt Transmit Note agrees and
that the amounts remitted to stations by the departments have been correctly accounted for by
the stations in their balance sheets.
The correct classification of the receipts should also be checked.
The register mentioned above should also be reviewed yearly to see that it is
complete in all respects, that the check over the receipt of returns is properly carried out and
adequate action is taken by the Accounts Office in case of delay in receipt of returns.
Ch.XII - Page 1 of 7
345
CHAPTER - XII
SPECIAL AUDIT GROUP
1201. Duties of the Section: The duties of the Special Audit Group Section(also known as
ECPA) are indicated in paras 2.2.42 to 2.2.46 of the Manual of Standing Orders(Audit) and
Chapter XXIV of Railway Audit Manual. The Special Audit Group will, among other things,
undertakes special investigations/reviews. Lists of topics suggested for investigation are
given in the Annexure to Section II Chapter 2 of Manual of Standing Orders(Audit) and
Chapter XXIV of the Railway Audit Manual. Special reviews are to be carried out as
suggested by the DAI/Principal Director of Audit , from time to time. One or more topics
will be selected by the Principal Director of Audit every month for investigation. The
investigation should generally be conducted by the SAG Section itself without entrusting it to
other auditing units/sections. In exceptional cases, however, data available at the unit level
may be called for.
This section should also co-ordinate investigation of topics specially selected
by the Principal Director of Audit to be done by the various auditing units.
1202. Special Audit Group: Even though for the purpose of certifying the accounts, routine
checks have to be carried out to satisfy that the accounts are correct and give a fair view of
financial results for the year, the emphasis of Government Audit has undergone considerable
changes. The regularity of expenditure with which Audit was mainly concerned has
gradually yielded place to a wider concept, viz. whether the expenditure has been incurred
with wisdom, faithfulness and economy. With this end in view, efficiency audit of projects
under execution, such as construction of new lines, doubling of lines, remodelling of yards,
remodelling of workshops, augmenting repair facilities, transhipment sheds, improved
signalling arrangements etc. which are in an advanced stage, and efficiency-cum-performance
audit of similar schemes when completed and put into use are taken up by the SAG Section.
For this purpose, the section should maintain lists of major works, coming under the various
Five Year Plans, drawn up with reference to Works Programme, Financial Reviews, General
Managers Annual Report etc. and obtain selections at the appropriate time.
The efficiency of construction may be reviewed with reference to the
expedition with which the surveys and the finalisation of tenders were conducted, the actual
commencement of work and periodical progress compared to the original schedules etc.
while the types of works found necessary and soils met with during actual execution would
be an index of the accuracy of the technical appreciation in the estimates, the pattern of rates
obtained in the tenders and any special aspects of construction or terrain might help in
reviewing the dependability of financial forecasts, vis--vis the actuals. The correlation of
the actual expenditure with the physical progress from time to time would also indicate the
financial efficiency of execution of the works. The review would thus be to assess the actual
performance both technical and financial, in relation to the original planning and
anticipations.
Apart from examining the points detailed in Para 2.2.42 of Manual of
Standing Orders(Audit), the following aspects may also be given due consideration to see that
the schemes were undertaken after a careful analysis of the economics thereof.
346
1) Whether fair and wide publicity was given to the tenders to make them competitive
and whether the sanctity of open tenders was duly maintained? Whether the rejection,
if any, of lower tenders was done on adequate grounds and whether in cases of
allowing price preference on account of earlier deliveries, the stipulated delivery
period was strictly observed. It should also be generally seen that the scope for
receiving competitive rates is sufficient or it requires improvement.
2) Whether in the case of works undertaken on urgency certificates, there was any delay
in preparing technical estimates, the works were completed expeditiously and they
were put to the expected use immediately after completion.
3) Where works had been left incomplete or their progress slowed down, it should be
seen whether the circumstances responsible therefor could not be foreseen well in
time to avoid infructuous expenditure and blocking up of funds. If any work has been
treated as abandoned, it should be seen whether its cost is promptly written down
from Capital to Depreciation Reserve Fund with a view to reducing the dividend
liability.
4) Whether there are apparent facts indicative of the likelihood of enormous idle
capacity on completion of certain schemes or whether the traffic offerings are
expected to be very inadequate, resulting in the additional capacity created remaining
unused. If so, whether the administration have taken steps to arrest the magnitude of
infructuous expenditure to find alternative means to make best use of the assets. It
should be specially seen whether the works though almost completed have not been
thrown open for traffic to avoid any criticism about lack of earnings and/or are
allowed to drag on with comparatively poor progress in some physical aspects just to
explain away the delay in opening of the lines.
5) Whether in the case of practically completed works, the number of staff employed has
been brought down and expenditure on other ancilliary items proportionately reduced.
6) In the case of new lines or doublings, whether the lines have been thrown open for
speeds mentioned in the Project Estimates or not, if not, the reasons for speed
restrictions and its financial effect on working should be examined.
7) Whether any major changes in specifications laid down in estimates or tenders have
taken place and if so, its financial effect should be examined
(ADAI(Railway)s letter No.1047-RAI/8-5/65, dated 11.4.1966).
Railways enjoy more or less monopoly in the matter of transport of passengers
and goods. Profitability under the circumstances does not necessarily indicate efficiency of
operation. Performance of Special Audit Group, therefore, requires more emphasis and the
following points require special attention:
Adequate utilisation of capital assets: Apart from utilisation of existing assets, it has to be
seen in the case of new constructions that the assets created are usefully and gainfully
employed so as to yield the anticipated results. This will require study of the Project Reports,
time schedule of construction, anticipated financial results, use of capital assets created and
financial results actually obtained. It should also be seen that the factors on which
justification for the creation of the assets was based, have been properly gauged and that there
347
has been no subsequent developments which have changed the flow of traffic resulting in
under-utilisation of the facility.
The review should bring out fully the background, objectives, initial estimates
of investments, financial justification and how these were defective (if so) and, how far these
have been realised in actual execution and subsequent traffic arisings or materialisation of
workshop loads etc.
(Paras 2.2.42 to 2.2.45 of Manual of Standing Orders(Audit))
1203. Investigations based on published Railway Statistics: A list of statistical subjects
likely to provide useful study for the purpose of making suggestions for economy in
expenditure or augmentation of revenue has been compiled and appended to this chapter.
Principal Director of Audit will select one or two topics occasionally for investigation to be
done by the SAG Section or by the various auditing sections concerned according to the
nature of the topics selected. In the latter case, the SAG Section will co-ordinate the
investigation.
The published statistics will also be circulated among the Branch Officers to
enable them to initiate investigations and for suggesting fruitful topics for investigation.
1204. The following reports are to be reviewed by the SAG Section as and when
received and the results bringing out important points, if any, put up to Principal
Director of Audit:
(i) General Managers Annual Report
(ii) Railway Boards Annual Statistical Statements
(iii) Civil Audit Reports
(iv) Digest of important and interesting cases appearing in Audit Bulletins.
(v) Reports of Estimates Committee.
(vi) Reports of different committees constituted by Central Government having
financial bearing such as Railway Reforms Committee etc.
(vii) Quarterly Progress Reports of the Railway Administration on Economy
Fuel, Staff etc.
(viii) Reports on the working of the Railway Protection Force.
(ix) Domestic Statistical Reports, selected statistical results and minutes of
statistical meetings.
1205. Railway Budget: A broad review of the Indian Railways Budget with special reference
to the South Central Railways estimate should be carried out by the SAG Section in
May/J une each year and results submitted to the Principal Director of Audit. The review
should inter-alia bring out the impact of the Five Year Plan etc. on the Railway's Finances,
the new schemes proposed and the audit arrangements which would eventually become
necessary in connection with these schemes and projects.
1206. Scrutiny of important special adjustments initiated towards the close of the
financial year, which require special examination in SAG Section: During the scrutiny of
March Accounts, Divisions and Sections should keep a careful watch over all major
348
adjustments carried out by the Accounts Office. Any special adjustments involving heavy
amounts carried out in March Accounts which the Branch Officer considers as requiring
special investigation should be intimated to SAG Section, for investigation of adjustment in
detail.
(CAG letter No.419-Admn/42-59 dated 10.2.1960 received under ADAI
(Railways) No.475-RAI/A17/I/59 dated 18.2.1960).
1207. Comptroller and Auditor General of India's References(C&AG References): The
information furnished to SAG by Sections/Divisions with reference to Comptroller and
Auditor General of India's references should invariably be got vetted by the Accounts
counterparts. In case the information has been furnished by the Accounts Office itself, the
correctness thereof should be verified by the Sections/Divisions concerned before it is passed
on to SAG.
1208. Review of Periodical Confidential D.O.s(PCDOs.): The periodical confidential
D.O.s from the General Manager to Chairman, Railway Board, Heads of Department to the
Directors concerned in Railway Board office and Divisional Officers to the Heads of
Department should be reviewed by the Asstt. Audit Officers of SAG Section (also known as
ECPA) so that important and interesting cases can be developed and taken up with the
Railway Administration with the approval of Principal Director of Audit. PCDOs sent during
the previous quarter may be covered in each review.
The results of the review done in a month should be put up to the Principal
Director of Audit by 10
th
of the following month, through the Branch Officers concerned.
(P.O.O. No.79 of June 1985).

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APPENDIX (Para 1203)
LIST OF STATISTICAL SUBJ ECTS
I. Operating Statistics.
(1) Fuel Consumption.
(2) Engine Usage.
(3) Engine failures.
(4) Lubrication Oil Consumption.
(5) Repairs and maintenance cost of rolling stock per engine kilometre/coaching
vehicle/wagon on line.
(6) Rolling stock under repairs or awaiting repairs.
(a) Locos
(b) Coaches
(c) Wagons
(7) Average kilometrage run by engine undergoing POH, since last POH.
(8) Engine held up in sheds for want of repair material from the Mechanical
Department.
(9) Cost of Special Repairs/POH per standard Unit of repair in workshops.
(10) Detention to wagons:
(a) In yards
(b) At terminal stations
(c) In transit
(d) In workshops
(e) At transhipment points
(f) At sick lines
(11) Utilisation of Wagons.
(12) Number of wagons dealt with per shunting hour.
(13) Average time taken in sending out a wagon from station after being released
or re-loaded - quick turn-round of wagons.
(14) Review of the effect of introduction of diesel traction/electrification with
special reference to effective utilisation of Diesel/Electrical locos and disposal
of old steam locos.
II. Maintenance.
Cost of maintenance per unit of track, building, bridges etc. on different
Railways or on the same Railway over some years.
III. Claims.
Examination of statistics of compensation claims vis--vis the cost of
Commercial staff, RPF staff and the efficiency of the arrangements for
handling traffic.
IV. Traffic.
350
Tonne Kms. Per engine hour (to serve as an index of efficiency) for different
Railways and for the same Railway over some years.
V. Financial Results.
1. Financial Results including operating ratios of the different Railways or of the
same Railway for the past few years.
2. Economics of some selected sections of the Railways (e.g.) branch lines,
worked lines, suburban system etc. to examine the cost of operation vis--vis
the earnings.
3. Money value of the traffic, season and standing concessions vis--vis the cost
of operation for examining the propriety of the concessions.

***********
Ch.XIII - Page 1 of 8
352
CHAPTER - XIII
CO-ORDINATION SECTION
1301. Duties of the Section: Co-ordination Section is responsible for co-ordinating the work
among the various sections and divisions of the office. The main functions of the section are
detailed below:
(1) Consolidation of material received from Branch Offices/Sections in connection with
various returns due to be sent to the DAI excepting those relating to Office
Administration, Finance Accounts, Capital and Revenue Accounts, Appropriation
Accounts etc.
(2) To deal with references received from the DAI connected with the programme of audit
and extent of check and other important policy matters requiring collection of information
from various Auditing Sections.
(3) To examine important objections reported by branch offices/sections and pursue them
centrally with the F.A.&.C.A.O. after ascertaining the position in that regard from all
other units concerned.
(4) To deal with all matters concerning periodical meetings of the Principal Director of Audit
with the Branch Officers and to collect material from all sections/divisions for inclusion
in the agenda for the meeting of the General Manager with the Heads of Departments.
(5) To scrutinise and submit to the Principal Director of Audit, Paras for Register of Audit
Activities received from the Branch Offices/Sections and to circulate to DAI and other
Zonal Railway Audit Offices the items selected by the Principal Director of Audit and
similarly to circulate to the Branch Offices/Sections the extracts of important results of
audit received from other Zonal Railway Audit Offices.
(6) To maintain the Registers of (i) Special Letters (ii) Audit Activities (Important Results of
Audit) etc.
(7) To deal with the Tour Notes of DAI/Principal Director of Audit/Director/Deputy
Director.
(8) To deal with the Charge Reports of Principal Director of Audit/Director/Deputy Director.
(9) Maintenance of P.O.O. Register and distribution of P.O.Os. to all Sections/Divisions.
(10) Hindi Cell
(11) Building up of data bank of Audit Objections under Special Letters / Inspection
Reports / Audit Notes in consultation with EDP.
1302. Efficiency of Internal Check: A report showing the position of arrears in Accounts
Office and lapses/defects in internal check should be prepared by all the Branch
Offices/Auditing Sections after the close of March Accounts every year and forwarded to the
respective Accounts Officers for their remarks/acceptance. The report should be prepared in
353
four parts in the form given in Annexure-I to this Chapter and the same should be sent to
Coordination Section duly accepted by the Accounts Office by 15
th
November. While
preparing the report, it should be ascertained by a complete review of all the registers
maintained for the purpose in the Accounts Office that adequate machinery exists in internal
check to watch recovery of all charges for services rendered to staff e.g., Diet charges,
Electrical Energy charges, Rent for Quarters, Rent on Electrical Installations and Sanitary
Fittings, Conservancy charges and Miscellaneous charges. Lapses on the part of the
Accounts Office to take appropriate action for recovery of these charges should be brought
out in the report. The Coordination Section will consolidate the reports and pursue the matter
further with the Financial Adviser and Chief Accounts Officer, wherever necessary, duly
obtaining the orders of the Principal Director of Audit.
Important arrears in Internal Check should be taken up by the sections
concerned with the Accounts Office. Such of the items in which there is no improvement in
arrears even after bringing it to the notice of the Accounts Office should be included in Part I
of the Report on Efficiency of Internal Check.
As regards cases relating to defects in Internal Check to be included in Parts II
to IV of the report, serious lapses such as those which would facilitate fraud, leakage of
revenue etc. should be taken up with the Accounts Office promptly as and when such cases
are noticed. The more important lapses in Internal Check meriting inclusion in the Audit
Report may be processed as Draft Paras.
1303. Statistics of Volume of Work done in Audit Offices: For the purpose of collection of
suitable statistics to serve as a fair index of the volume of work done in Railway Audit
Offices, information in the prescribed form (vide Annexure-II to this Chapter) is submitted by
the Branches/Sections to reach Coordination Section before 1
st
August each year. The
consolidated information should be sent to the DAI so as to reach his office before 10
th

August each year.
1304. Procedure Office Order Register: Orders dealing with changes in procedure,
interpretation and modification of Rules etc. received from the Comptroller and Auditor
General of India or approved by the Principal Director of Audit for implementation, are
notified through Procedure Office Orders. All P.O.Os. will be entered in the P.O.O. Register
maintained in the Coordination Section and numbered serially. P.O.Os. emanating from
other sections should also be routed through the Coordination Section, which will arrange to
obtain the approval of the Principal Director of Audit and assign the serial number with
reference to the P.O.O. Register. A copy of the P.O.O. will be pasted in the P.O.O. Register.
Copies of P.O.Os. will be distributed by the Coordination Section to all
Officers, Sections/Divisions for information and necessary action.
1305. Programme of Audit: The Correction Slips to the Secret Memorandum of Instructions
regarding the Extent of Audit(Railway Audit) received from the DAI will be circulated by the
Coordination Section to all units along with supplementary instructions, wherever necessary,
duly approved by the Principal Director of Audit.
1306. Preparation of Charge Reports of Principal Director/Director/ Deputy Director:
After collecting material from the Divisions/Sections, the Charge Reports of Principal
Director/Director/Deputy Director will be prepared by the Coordination Section.
354
1307. Tour Notes of Principal Director of Audit/Director/Deputy Director: Tour Notes of
Principal Director of Audit/Director/Deputy Director will be made over to the Coordination
Section for taking out copies and despatching to Divisions/Sections concerned for necessary
action. The Divisions/Sections will send their reports to Coordination Section in respect of
the items referred to them as expeditiously as possible. The Coordination Section will put up
the replies to the Principal Director of Audit/Director/Deputy Director for orders.
1308. Recoveries at the instance of Audit: After close of the financial year, a statement
showing the recoveries and savings effected at the instance of audit should be prepared by all
sections/divisions and furnished to the Coordination Section on the date prescribed, duly
vetted by their Accounts counterparts. The Coordination Section will consolidate and furnish
a report to the Comptroller and Auditor General of India(Railways) after getting the position
verified by the Financial Adviser and Chief Accounts Officer.
1309. Custody, distribution and destruction of copies of Secret Memorandum of
Instructions regarding Extent of Audit: All Branch Officers/Assistant Audit
Officers/Section Officers are supplied with a copy each of the Secret Memorandum of
Instructions regarding Extent of Audit. This book should not be treated as a personal copy
and should be handed over to the successor through the charge report whenever the person to
whom it is supplied proceeds on leave or is transferred to another section.
A stock register should be maintained both for Railway and Civil Books of
Secret Memorandum of Instructions by the Coordination Section to record the receipt and
issue of books. A half-yearly stock verification of the books should be carried out in the
month of J anuary and J uly each year showing the position by end of December and J une and
for this purpose all Branch Officers/Assistant Audit Officers/Section Officers to whom the
books have been issued should furnish a certificate in the proforma given below regarding
physical existence of the books, to Coordination Section by first week of J anuary and J uly
every year. Each section should make an entry in the Calendar of Returns under half-yearly
items and should collect the certificates from all the Branch Officers/Assistant Audit
Officers/Section Officers attached to the section and forward them to the Coordination
Section under a covering letter on the due dates. After the receipt of these certificates, the
stock register along with the certificates should be put up to the Principal Director of Audit.
Certificate regarding physical existence of Secret Memorandum of
Instructions regarding Extent of Audit (Railways) for half-year ending
J une/December.
------------------------------------------------------------------------------------------
"It is certified that the Secret Memorandum of Instructions regarding Extent of
Audit bearing No.____________ together with correction slips is under my
custody".
Branch Officer/Asstt. Audit Officer/Section Officer
Copies of old editions may be destroyed on expiry of the preservation period
mentioned against item No.75 of Appendix II to the Railway Audit Manual.
1310. Quarterly Progress Reports on losses sent by General Manager to Railway Board:
The Coordination Section should initially receive audit copies of Quarterly Progress Reports
on cases of losses forwarded by the General Manager to Railway Board. The Coordination
355
Section will take necessary action to refer the individual cases of losses to the
Divisions/Sections concerned for comparing details of such losses with individual reports of
losses received from the Railway Administration (in cases where individual reports were not
received, the same should be called for from Railway Administration) and examining the
Administration's files regarding action taken/to be taken. The results should be advised to
Coordination Section. Cases specially marked by Deputy Director/Director/Principal
Director of Audit (indicated while circulating the quarterly return) should be reviewed by the
unit concerned and results submitted within 15 days to Coordination Section. The reports
from the unit offices should be examined by Coordination Section and consolidated report
submitted to the Comptroller and Auditor General of India, where necessary. (P.O.O.No.82
dated 8
th
October, 1985).
1311. Circulation of important results of audit and maintenance of Register of
Important Results of Audit: In order that only important and useful Paras are submitted for
Principal Director of Audit's approval for inclusion in the Register, the following guiding
principles are laid down:
1. The subject matter is of interest to other Railways.
2. The subject matter may not be of interest to other Railways but is of interest to other
auditing units.
3. The irregularity is of an isolated nature but the amount recovered or saving made at the
instance of audit is very substantial.
4. In respect of cases which do not fall in any of the above three categories but are intended
to bring to the Principal Director of Audit's notice the good work done by the staff, the
case file may be submitted for perusal of the Deputy Director/Director/Principal Director
of Audit. If considered necessary, a brief Para may be prepared and circulated to the staff
in the particular unit only after its approval by the Principal Director of Audit. The paras
proposed by the auditing sections and divisions for inclusion in the Register of Audit
Activities (vide Para 474 of Railway Audit Manual) should first be sent to Coordination
Section along with the relevant papers. In proposing the paras, reference to the section
and file number should invariably be given in brackets under each para with suitable
heading indicating the subject matter of the Para. Coordination Section, after examining
the para, will submit it to the Principal Director of Audit for approval, indicating whether
the Para is considered fit for circulation among the Principal Directors of Audit of other
Zonal Railways and the DAI. Thereafter, the approved Para will be noted in the register
maintained centrally and the papers returned to the sections concerned.
A register should be maintained in which all the paras indicating the results of
important objections raised in audit duly approved by the Principal Director of Audit should
be pasted. A note should be kept in the register of the paras circulated to other Zonal
Railways and the DAI. The register should be put up to the DAI for perusal during his visit.
Extracts of important results of audit received from other Principal Directors
of Audit should be circulated to all sections/divisions. Likewise, copies of all important
results of audit achieved by a Branch Office/Section during a quarter should be circulated to
other Branch Offices and Sections of the office.
356
1312. Arrear Report: The Monthly Arrear Reports (in the prescribed form) of the Divisions
and Sections should be reviewed by the Coordination Section before submission to the
The Quarterly Arrear Reports in the prescribed form received from the
Divisions/Sections should be scrutinised and consolidated by the Coordination Section. The
Quarterly Arrear Report in the computerised format should be forwarded so as to reach
C&AG's office by 20
th
of April, J uly, October and J anuary.
(Authority: (1) C&AG's Lr.No.1314-Audit-II/105/90 dt.11.10.1991,
(2) C&AG's Lr.No.159-RAI/17-7/92 dt. 15.9.1993).
1313. Position of outstanding Audit Objections: A statement showing number of Audit
Objections issued and settled during the Financial Year should be sent by all the sections duly
vetted by the respective Accounts Officers to Co-Ordination Section by 15
th
May in the
format prescribed (Annexure III). A consolidated statement will thereafter be prepared by
COR section and after acceptance by the FA & CAO be sent to Headquarters so as to reach
by 31
st
J uly of every year.
(Authority: Headquarters Lr.No. 184/Rly./2-4/Recoveries/2004 dated 26.02.2004)
357
Annexure - I (Para 1302)
REPORT ON THE EFFICIENCY OF INTERNAL CHECK
Proforma for Part - I
Divn./ Sr. Nature of Extent of Accounts Remarks(Comparing
Sec. No. Arrears Arrears Office the position with
Remarks arrears in previous
Year).
(1) (2) (3) (4) (5) (6)

Proforma for Parts II and III

Divn./ Sr.No. Nature of Accounts Remarks
Sec. The defect Office remarks
(1) (2) (3) (4) (5)

Proforma for Part IV

Divn./ Sr.No. Particulars Accounts Remarks
Sec. Office remarks
(1) (2) (3) (4) (5)

.

358
Annexure II(Para 1303)

Statistics of volume of work done in Railway Audit Offices - Divisions/Sections

SECTION - I :

+1. Number of Offices, Departments etc. whose accounts are audited.

2. Number of constructions.

1. Number of Inspections :

(a) Total No.
(b) No. inspected

i) Executive Offices
ii) Stations.
iii) Stores Depots
iv) Workshops
v) Others

SECTION - II:

1. No. of letters -
i) Receipts.
ii) Issues
2. No. of Estimates checked in a year as per Railway Audit Programme.
3. Number of completion reports.
4. (i) No. of Pay bills of Gazetted Officers
(ii) No. of T.A. Bills of Gazetted Officers.
5. (i) No. of Pay bills of Non-Gazetted Officers.
(ii) No. of T.A. Bills of Non-Gazetted Officers.
6. Leave applications of Gazetted Officers' Accounts Office only.
7. No. of contractors bills checked in a year.
8. No. of Labour Paysheets.
9. No. of applications for pension, special contribution and gratuity checked in a year.
10. Provident Fund Account :
(i) No. of accounts checked in a year.
(ii) No. of Payments both permanent and temporary.
11. No. of J ournal Vouchers and Adjustment mema.
12. No. of other bills.
13. No. of Reviews:
i) Suspense Register
ii) Allocation and Works Registers.
iii) Exchange and Remittance Accounts
iv) Others.
359
14. No. of compiled accounts checked.
15. No. of station accounts -
(i) Local :- (a) Coaching; (b) Goods; (c) T.T.E. Returns
(ii) Foreign:- (a) Coaching; (b) Goods; (c) T.T.E. Returns
(iii) Refund Lists and Over-charge Sheets
(iv) Compensation Claims
16. I. No. of Stores Vouchers including bills -
(i) Receipts; (ii) Issues; (iii) Priced Ledgers
II. (i) Manufacture Accounts; (ii) Suspense Accounts
17. Workshop Accounts
(i) Work Orders (ii) Labour Pay Sheets
(iii) Stores Bills (iv) Time Sheets
(v) Bonus and Piece Work Bills (vi) J ob Costing Sheets

+This should not include the number of stations whose accounts are audited.

NOTE: The statistics above should provide information in two main columns as shown
below:

(1) (2)

Previous Year Current Year
-------------------------------------- -----------------------------------------
Figures as Figures after Latest
reported closing of the figures
previously accounts including upto_______
sub-col.(a)

(C.A.G.'s No.1113-BRS/43-62/VI dated 13
th
June,1963).
.
Ch.XIV - Page 1 of 2
360
CHAPTER - XIV
INTERNAL AUDIT
1401. The Internal Audit Section will conduct a test check of the work of other sections of the
office with a view to seeing whether
(a) the procedural rules and regulations are followed;
(b) the various registers prescribed are maintained;
(c) the returns are submitted on the due dates; and
(d) the sections function as efficient units of the office.
Internal Audit Section / Costing Cell is entrusted with Audit of charges relating to
other Railway Audit Offices and inspection of P & T Audit Office.
(Authority: P.O.O. No. 161 of 12.03.2007)
1402. For purpose of selection of the office/section for internal audit, the whole field will be
divided into 12 units and one unit selected by the Principal Director of Audit every month.
The Internal Audit of all the sections of the office will be completed in a cycle of two year as
per orders of Principal Director of Audit. The Internal Audit will inter-alia consist in seeing:
(i) whether the prescribed programme of audit is being followed by the sections and that
the processes of audit employed in the section ensure a complete scrutiny of the
records under audit;
(ii) the position of arrears and whether the periodical arrear reports submitted by the
section concerned truly represent the actual position of arrears in that section;
(iii) delays in the disposal of correspondence and whether these have been brought to the
notice of the Branch Officer/ Principal Director of Audit, wherever necessary, through
the Weekly Arrear Reports or otherwise;
(iv) the Calendar of Returns whether returns shown as having been sent on the dates
mentioned therein were actually sent on those dates;
(v) whether queries made by Principal Director of Audit /Director/Deputy
Director/Branch Officer are being attended to expeditiously;
(vi) the number of Draft (Preliminary) Observation Slips, Audit Notes, Inspection Reports
and Special Letters issued by the section in the previous quarter and also scrutiny of
some Part.II Audit Notes/Inspection Reports to see that objections meriting inclusion
in Part I Audit Notes/Inspection Reports are not included in Part II Audit
Notes/Inspection Reports;
(vii) whether the files and other records of the section are maintained in a neat and
systematic manner;
(viii) whether the prescribed programme of audit itself is adequate or whether any
modification or addition is necessary to enable the Principal Director of Audit to
record his/her annual certificate on the accounts of the Railway;
(ix) whether the Selection Registers and Registers of Original Audit, Current Review, Post
Review etc. are maintained indicating details of the vouchers/documents
Ch.XIV - Page 2 of 2
361
audited/reviewed, date of completion of audit/review and dated initials of the staff
concerned;
(x) whether the Sectional Library has been maintained up-to-date by posting correction
slips and orders etc. received from time to time; and
(xi) the Register of Review of Accounts Office work whether all the items as prescribed
have been covered. Omissions should be brought to the notice of the section
concerned (C.S.No.6 to Para 519 O.M.).
1403. The Section Officer/Assistant Audit Officer/Branch Officer of Internal Audit Section
should discuss the points noticed during Internal Audit with the Section Officer/Assistant
Audit Officer/Branch Officer of the section inspected after obtaining the latters preliminary
remarks. The remarks to the draft (preliminary) Internal Audit Report, after having been seen
and approved by the Director/Deputy Director (in respect of sections under their direct
supervisory charge), should be sent to the Internal Audit Section within 10 days of receipt
of the report. The Internal Audit Section should then submit the report to the Principal
Director of Audit for approval and the final report as approved by the Principal Director of
Audit, should be issued within 15 days of the receipt of the sections remarks to the draft
report. If the remarks to the draft report are not received within 10 days as stipulated above,
Internal Audit section will proceed to issue the final report without the sections remarks.
After approval by the Principal Director of Audit, the final Internal Audit Report showing
preliminary remarks of the section concerned and further remarks of Internal Audit section
against each para will be issued to the Director/ Deputy Director (in respect of the sections
under their direct supervisory charge) for their perusal and onward transmission to the section
concerned. Replies to the final Internal Audit Report should be sent to Internal Audit
section after getting the approval of Director/Deputy Director.
1404. Common defects noticed in a group of sections should be circulated periodically so that
such defects may be guarded against in future. It is the duty of the Internal Audit section to
see that the defects noticed are remedied by the sections and that there is no recurrence of
such defects.
1405. The following items may be scrutinised while doing Internal Audit of Administration
Section.
1. Check of Service Registers and Leave Accounts of employees who are due to retire
within the next two years.
2. Registers of Medical Bills/Travelling Allowance Bills/Childrens Education
Allowance, Reimbursement of Tuition Fees and other claims of employees to see that
they are not unduly delayed.
3. Stamp Account.
4. Imprest Cash Account.
5. Settlement of dues of retired/resigned/dismissed employees.
6. Register of advances granted to employees to see that recoveries are made correctly
and in time.
7. Scrutiny of monthly review report on the activities of Administration.
(Paras 3.24.1 to 3.24.5 Manual of Standing Orders (Audit) and Paras 514-
517 of Railway Audit Manual)
Ch.XV - Page 1 of 3
362
CHAPTER - XV
REPORTS SECTION
1501. The Reports Section deals with the work relating to Draft Paras for inclusion in the
Report of the Comptroller and Auditor General of India - Union Government (Railways).
The main functions of the section are detailed below:
1502. Draft Paras: The procedure for processing of Draft Paras, the correspondence thereon
with the Railway Administration and DAI is as under:
In accordance with the instructions issued by the then ADAI in March, 1987,
Principal Director of Audit will issue Draft Paras to the Railway Administration. The Draft
Paras, duly supported by key documents, will be sent under D.O. letters confidentially to the
General Manager (in duplicate), Financial Adviser and Chief Accounts Officer, Officer on
Special Duty (Accounts), Railway Board and DAI.
(i) The selection of material and its processing before issuing a Draft Para must receive
utmost importance and should have the prior approval of the Principal Director of
Audit. The Draft Para should be processed only after a thorough investigation of the
case and collection of complete factual material on the subject. As soon as an
irregularity having sufficient potential for comment in the Audit Report comes to
notice, it should be ensured that complete information on the subject is collected
expeditiously at the initial stage itself and the case taken up at Principal Director of
Audit's level with the General Manager, Financial Adviser and Chief Accounts
Officer and the Head(s) of Department concerned.
(ii) The qualitative aspect should be given more importance so that relatively less
important matters of routine and repetitive nature are not issued as Draft Paras as
about 80% of the material selected ordinarily finds a place in the Audit Report.
(iii) Sections initiating the Draft Para should send to the Reports Section all key
documents which should be neatly typed together with their file and other relevant
papers along with the Draft Para. The Reports Section will examine the Draft Para
and put up the same for Principal Director of Audit's approval. Whenever reference
to other sections for collection of similar information is considered necessary, Reports
Section will collect such information expeditiously and incorporate it in the proposed
Draft Para.
(iv) The last date for issue of Draft Paras is fixed by DAI each year. Normally, Draft
Paras issued upto 30
th
September of a year will be processed for inclusion in the
report on hand. It should be ensured that there is an even flow of issue of Draft Paras
during the whole year. As Audit Reports are treated as confidential documents till
they are presented to the Parliament, Draft Paras and correspondence thereon should
also be treated as confidential.
(v) The Railway Administration is required to furnish their replies to the Draft Paras
within the prescribed time limit of 6 (six) weeks (when the Audit Objection and
remedial action / corrective measures are within the control of individual Zonal
Ch.XV - Page 2 of 3
363
Railway) and within 8 (eight) weeks (in case of Draft Paras involving more than one
Zonal Railway). The Railway Administration's replies are required to be issued over
the personal signature of the General Manager or shown as issued with his personal
approval. (Railway Board's Lr.No.83-BC-Genl/20 dt.20.8.83).
(Authority: Railway Boards Lr.No. 2003/AC-II/17/3 dated 27.08.2003)
(vi) Final replies to Draft Paras should be scrutinised immediately on receipt and
comments furnished to the DAI with utmost expedition, say within three or four days
of receipt of replies. The replies of the Railway Administration to the Draft Para and
comments of the Principal Director of Audit thereon, should be furnished to the DAI
in a tabular form showing in juxtaposition the sentence of the Draft Para, Railway
Administration's remarks and Principal Director of Audit's comments. The Para will
be finally edited by the DAI. Paras approved for inclusion in the Audit Report will be
issued by the DAI to the Railway Board. Reports and enquiries, if any, for further
information at this stage should be dealt with on highest priority. Such information
should, as far as possible, be supplied duly vetted by the Administration.
(vii) DAI prepares Draft Paras on cases of irregularities noticed during the scrutiny of
Railway Board's sanctions pertaining to more than one Railway or during the review
of Railway Board's files connected with tenders, contracts etc.
(viii) Occasionally, Principal Directors of Audit are required by DAI to study certain
aspects of Railway working and submit a report to him. In such cases, the required
information is sent to the DAI after getting it vetted by the Financial Adviser and
Chief Accounts Officer. The consolidated Draft Para will, wherever necessary, be
prepared by the DAI and sent to the Railway Board; copies being endorsed to the
Principal Directors of Audit concerned. Further action to deal with the Draft Para will
be initiated according to directives contained in letters received from the Comptroller
and Auditor General of India's office.
(ix) Draft Paras may not be treated as closed until a formal intimation is issued by the
Principal Director of Audit to the Railway Administration.
The Reports Section should maintain the following registers:
(1) Register of Draft Paras for Railway Audit Report.
(2) Register of Potential cases of Draft Paras for Railway Audit Report.
(3) Register of Pending Action Taken Notes (ATNs) in respect of Paras
printed in the Railway Audit Report.
These registers should be submitted to the Principal Director of Audit once in
a month.
(Chapter XXIII - Railway Audit Manual)
1503. Corrections to Railway Audit Report: On receipt of the published Audit Report,
'Reports' Section should check all the facts and figures given in the Audit Report in respect of
cases pertaining to this Railway and bring to the notice of the DAI without any delay, any
Ch.XV - Page 3 of 3
364
important corrections, that are considered necessary by the Principal Director of Audit. (Para
493 Railway Audit Manual)
1504. Pursuance of Paras included in the Audit Report: Further developments in regard to
the Paras (including those cases which were centrally processed by the Comptroller and
Auditor General(Railway)'s office with reference to information available in Railway Board's
office files or furnished by this office) should be intimated to the DAI, duly accepted by the
Administration wherever necessary through periodical reports.
(Para 492 Railway Audit Manual)
1505. Circulation of Railway Audit Reports: The Reports Section will forward copies of
Railway Audit Reports to the Railway Administration and also distribute copies to the
Director/Deputy Director and Branch Officers of the office for information.
1506. Memoranda for Public Accounts Committee (Action Taken Note): Information
furnished by the Railway Administration for preparation of notes/memoranda for the Public
Accounts Committee should be verified quickly on receipt. The result of verification should
also be advised to the DAI promptly; in any case not later than a week of its receipt.
(Para 494 Railway Audit Manual)

Ch.XVI - Page 1 of 51
365
CHAPTER - XVI
INSPECTIONS
1601. Objects of Inspection: The primary objects of inspection are
(i) to see that the initial accounts from which the accounts rendered by departmental
officers are compiled or on which they are based, are properly maintained in the
prescribed format and that financial rules and orders are being adhered to, and
(ii) to test the degree of care exercised over the accuracy of original records by the
Department authorities responsible for maintaining Accounts. At the same time, a
test-audit may be applied to such accounts, vouchers, etc. as are not audited in the
Central Audit or as cannot be checked adequately except at a local audit.
(Section VI of Manual of Standing Orders(Audit) and Chapter XXI of Railway
Audit Manual).
1602. Distribution of Inspection work: The distribution of inspection work among the
various divisions and sections is done on the general principle of "Internal check
arrangements".
1. All open line offices, Heads of
Departments, Chief
Engineer(Survey), Chief Cashier,
Indian Railways Institute of Signal
Engineering and Telecommunica-
tions, Railway Claims Tribunal and
Railway Recruitment Board,
Secunderabad.
Internal check done
by FA&CAO
'Establishment' and
'Expenditure'
Inspection done by
Inspection
Headquarters
Section (IHQ)
2. All Divisional Offices Internal check done
by Divisional
Accounts Officer
Inspection done by
respective
Divisional Audit
Officer.
3
a)
b)

c)

d)

Chief Engineer (Construction)

Internal check done
by FA&CAO
(Construction
Headquarters)

Inspection done by
concerned Branch
Officer
(Construction)

Chief Signal & Telecommunication
Engineer (Construction); and
Chief Electrical
Engineer
(Construction)
Offices of Divisional Engineers
(Construction Units)
Internal check done
by Senior Accounts
Officer
(Construction)
Inspection done by
respective Audit
Officer
(Construction)
Inspection Headquarters (IHQ): All the inspections of Headquarters Offices will be
conducted by IHQ section through three inspection parties and each party will consist of one
Asst. Audit Officer / Section Officer and one Sr. Auditor / Auditor. Inspection of one such
366
party will be under the supervision of Sr. Audit Officer / Audit Officer (IHQ) who will be in-
charge of coordinating the work of IHQ section such as finalisation of Inspection Programme,
maintenance of records, submission of returns, pursuance and settlement of Audit objections
etc. Inspection conducted by the other two parties will be supervised by Sr. Audit Officer /
Audit Officer (E & BHQ) and Sr. Audit Officer / Audit Officer (XHQ).
In addition a Sr. Audit Officer / Audit Officer with the assistance of one Asst. Audit
Officer / Section Officer will take up special cases to be processed as Draft Paragraphs.
(P.O.O. No. 160 of 19.01.2007)
1603. Frequency of Inspection: Principal Directors of Audit have been empowered to fix
the frequency and duration of local inspections considering the needs of each case. The DAI
had laid down that the emphasis should be on more intensive audit of offices visited than to
do local inspections on extensive scale i.e. unimportant offices which have no power of
making major decisions having financial implications may be inspected at comparatively
longer intervals but offices incurring considerable expenditure as well as major decision
making offices should be audited more intensively during local inspections. Accordingly,
periodicity of inspection of various offices had been fixed and given in Secret P.O.O. No.7
dated 25.3.1976 as amended from time to time and as per P.O.O. No. 148 dated 15.02.2002.
1604. Programme of Inspections: (1). Each inspection section should maintain a Master
Register indicating therein the list of all executive/sub-offices to be inspected under its
jurisdiction. Subsequent additions/deletions of main/sub-offices should be incorporated
therein suitably from time to time and the register should be brought upto-date in J anuary
each year. For this purpose, sections will obtain from the concerned Accounts Office an
authentic list of offices including sub-offices in the units under their audit purview.
(2). COR Section will also maintain a Master Register indicating therein the list of
all main/sub-offices to be inspected, as advised by the Inspection Sections. The
additions/deletions intimated by the sections will be incorporated in the Master Register of
COR Section against the unit concerned.
(3). The annual inspection programme in the proforma as given in Annexure I
consisting of two parts - Part I showing a statement of additions/deletions of main/sub-offices
and Part II showing annual inspection programme for the year - should reach COR Section by
15
th
December every year for obtaining Principal Director of Audit's approval. For this
purpose, the package designed by EDP, viz., APMS, is to be utilized by each section for AIP
and MIP also.
(4). Programme of inspection for the ensuing year should be prepared with
reference to this Master Register and after consulting the previous year's inspection
programme and Accounts Programme. The provisions of Para 425 of Railway Audit Manual
should be borne in mind while drawing up the inspection programme. As far as practicable, a
minimum period of 6 months should elapse between the inspections by Accounts and Audit
whenever the same office is due for inspection both by Accounts and Audit during the same
year. The man-days allotted for each inspection should be those approved by the Principal
Director of Audit.
(5). As the inspections are to be carried out in the month as per the annual
programme already approved by the Principal Director of Audit, the details regarding date of
commencement of the inspection, composition of the party etc. may therefore be decided by
the Branch Officers and submitted Group Officer each month. However, the tour programme
367
of the Branch Officer drafted to the inspections involving tour to outstations should continue
to be submitted in advance to the Principal Director of Audit through the Group Officer for
approval.
(A) All deviations / additions / deletions etc. dealing with Annual
Inspection Programme are to be invariably routed through the COR
section including the monthly tour programmes for submission to
PDA. (Au/COR/I/Vol. VI dated 30.04.2004). All the Inspections as
approved by the Principal Director of Audit, to be done in an year are
completed without fail by 31st March of the relevant year.
(B) A Compliance Report in respect of completion of offices programmed
in each quarter vis--vis the offices approved under AIP should be sent
to COR section for consolidation of data to be sent to Headquarters, by
1
st
week of following month of the quarter.
(Authority: Auditing/COR/X/1-A/Vol.II/179 dt.18.9.92)
(Au/COR/Audit Plan/2003-04 and Au/COR/I/Vol. VI dated 30.04.2004)
(6). The time allowed for various inspections and composition of the inspection
party are indicated in Revised periodicity of Inspections in terms of P.O.O. No. 148 dated
15.02.2002 and Anneuxre-II. This is not an exhaustive list of all offices, but shows the
various categories of offices which generally exist in a unit. If the Branch Officer feels that
any other office is required to be added, he should send a detailed note indicating the number
of days justified for inspection of main/sub-offices for Principal Director of Audit's approval.
The inspection programme should be drawn up on this basis. The time allowed is only a
guide-line. Where the work load justifies, the time can be increased normally with the prior
approval of Principal Director of Audit and in emergent cases with his ex-post facto approval.
Where the time allowed is too much, compared with the actual work load, the Branch Officer
is expected to cut down the time allowed suitably and inform the Principal Director of Audit.
(7). In order to keep an element of surprise, surprise verification of cash with
cashiers may be done in any month of the year and need not be postponed till the year ending.
Besides, cash and accounts of one cashier at Headquarters and one cashier at outstation (i.e.
while travelling on duty) should be verified to the extent prescribed.
1605. Procedure for taking up Inspections: Probable date of commencement of inspection
will be intimated to the Head of the Office to be inspected and the Accounts Officer
concerned atleast a week in advance. No such intimation is required in regard to surprise
inspections. The month of accounts to be test-checked during the inspections will be selected
by the Branch Officer and all the paid vouchers/bills required for inspection should be
obtained from the Accounts Office.
The items to be seen during inspection will be recorded in a register and items
for original audit by the Branch Officer/Asstt. Audit Officer/Section Officer will be marked
by the Branch Officer in-charge. Asstt. Audit Officer/Section Officer in-charge will then
allot the remaining items among the Senior Auditors/Auditors comprising the inspection
party. At the conclusion of the inspection, the person concerned should initial in ink against
the items audited by each of them in the register. Vouchers/documents, if any, not made
available for audit during inspections shall be clearly brought to the notice of the Railway
Administration by including the same in the Inspection Report.
368
1606. Intensified Inspections: Assistance from I.I.Cell will be provided for manning the
inspections of offices identified as important. Such offices are listed in the Annexure
No.___. This cell will function under the control of the Deputy Director holding supervisory
charge of COR Section.
The programme of inspection for a month may be sent sufficiently in advance,
but not later than 15
th
of the previous month, indicating the names of the identified offices for
which assistance is required, No.of days of inspection of party, the proposed dates of
inspection and the period of supervision required to be done by the Branch Officer.
The inspection programmes received from the Units will be examined by COR
Section and assistance from I.I. Cell will be provided to the maximum extent possible with
the approval of Deputy Director/Director holding supervisory charge of COR Section. The
Branch Officer/I.I. nominated to supervise an inspection will manage the entire inspection of
that office and to this extent, the regular Branch Officer would get relief. The services of the
Asstt. Audit Officer(I.I.) deputed for assisting the regular inspection party of the concerned
unit should be utilised only for doing non-personnel portion of the inspection.
The Branch Officer/(I.I.), who has been nominated for supervision of the
inspections, should finalise the Inspection Report in all respects after discussion with the
Executive concerned within the allotted time. If discussion could not be held for any reason,
the report should be finalised and the fact of not holding the discussion should also be
mentioned suitably in the Report. The draft Inspection Report should be categorised into
Special Letters/Part I/Part II. Those fit for Part I/Special Letter should be arranged to be
suitably drafted and handed over by the nominated Branch Officers(I.I.) to the Branch Officer
of the unit concerned for submission to Deputy Director/Director/Principal Director of Audit
and further necessary action.
The Branch Officers supervising the inspection should clearly indicate the
items to be done by the Asstt. Audit Officer(I.I.) vis--vis the regular Section Officer/Asstt.
Audit Officer.
Cases, if any, noticed during the inspections which requires further
investigation at Headquarters will also be examined by Intensified Inspection Section on
return to Headquarters.
Branch Officers/Asstt. Audit Officers(I.I.) will also attend to any special work,
investigations etc. that may be entrusted by Deputy Director/Director/Principal Director of
Audit.
After completion of each inspection, a note bringing out important and
interesting points brought out by the Branch Officer/Asstt. Audit Officer(I.I.) during local
inspection should be submitted to Principal Director of Audit.
The Branch Officers/Asstt. Audit Officers(I.I.) deputed for inspections should
send to COR Section by 15
th
of the following month, a copy of monthly report submitted to
Deputy Director/Director/Principal Director of Audit indicating important points noticed and
taken up by them during their inspections. If the objections taken up are not considered as
important, a 'NIL' report should be sent to COR Section.
(Authority:- P.O.O. No.121 dt.28.8.1991, P.O.O. No.125 dt.11.2.1993).
369
1607. Branch Officers' supervision of inspections: The quantum of Branch Officers'
supervision of inspections will be as approved by Principal Director of Audit.
1608. Frequency of Inspection of Sub-Offices: All sub-offices of Engineering, Electrical
and Mechanical Departments and Signal and Telecommunication as mentioned in Part. I
statement will be done bi-annually and the inspections have to be completed with the existing
staff strength. The composition of party for the above sub-offices excluding AENs, AMEs
and AEEs will be SO/AAuO and Ar./Sr.Ar.
(Authority: Au/COR/I/Vol. VI dated 30.04.2004)
One sub-office under each of the sub-divisional offices like Assistant
Engineer's office should be inspected along with the Divisional Office. Where there are no
sub-divisional offices(e.g.) Divisional Railway Manager(Operating), Divisional Railway
Manager(Commercial) two subordinate offices should be inspected along with the inspection
of the main office. When, however, the inspection of the main office reveals irregularities in
the accounts of these sub-offices, the inspecting officer may consider taking up some more
sub-offices for inspection, with the approval of the Principal Director of Audit.
NOTE: Health units/Railway Hospitals under Asstt. Medical Officers may be treated as sub-
offices for the purpose of determining the periodicity of their inspection.
1609. Points to be seen during inspections: Paras 431 to 439 of the Railway Audit Manual
contain the important points to be seen during the inspection of various offices.
Detailed lists of items to be seen during the inspection of various offices are
given in Annexure IV to this chapter. Any other points coming to notice during inspection
should also be examined in detail. Besides this, any special points selected by the Principal
Director of Audit, Director/Deputy Director or other Branch Officers should also be noted in
the Register of points to be seen during inspections and such points should be looked into and
action taken thereon.
1610. Maintenance of detailed records of documents audited during inspection: In order
to enable fixation of responsibility at a subsequent date for any failure of checks during
inspections, a detailed record of documents checked during inspection should be maintained
(see Para 1605).
Every member of the Inspection Party (including the Branch Officer) should
record the details of the documents audited pertaining to each item of work done by him in a
separate list. These details should be complete as far as possible. Details to be recorded in
respect of some of the items are given below:

Item of work Particulars to be recorded
i) Service Registers Name and designation of the employee and the
period of service checked.
ii) Leave accounts of sub-ordinates -do-
iii) Pay Bills Name, designation, month & amount
iv) Advance of Pay -do-
370
v) Original fixation / re-fixation of
Pay of NGOs other than Accounts
Department
Number, date and amount
vi) Rent Register / Rent Rolls Name, designation, station, under whom employed
and amount
vii) Contractor's Bills Number and date(Au6 and Co7), contract/work
order No. and date, Name of work, Name of
contractor and amount
viii) Forms and Miscellaneous Bills Number and date, amount, name of firm and
particulars ix) TA Bills
x) Mileage Bills
xi) Pay Orders Number, date and amount
xii) Adjustment vouchers
xiii) Tenders and Agreements:
(a) Accepted tenders

(b) Summaries of tenders

xiv) Payment under WC Act

Particulars of work or supply, amount of accepted
tender, and name of supplier

Particulars of work or supply, name of accepted
tenderer, and amount of accepted tender.

xi) Detailed records of items checked during inspection of Station accounts should be
maintained in the proforma attached to the list of items to be seen during the Traffic
Inspections.
The lists should be signed in full by the persons concerned, i.e. Branch
Officer/Asstt. Audit Officer/Section Officer/Senior Auditor/Auditor and filed. The lists
should be preserved for a period of 15 years.
1611. Issue of Inspection Reports: During the course of inspection, as and when
irregularities are noticed, they should be communicated to the office inspected through draft
(preliminary) observation slips for necessary action/remarks. These slips should be written
up in triplicate, serially numbered for each office inspected and signed by the Branch
Officer/Asstt. Audit Officer/Section Officer conducting the inspection. Two copies thereof
should be handed over to the office inspected under proper acknowledgement on the triplicate
copy.
On the basis of draft (preliminary) observation slips issued and remarks
thereon offered by the office inspected, the inspection report should be written up. Draft
Inspection Report will be discussed by the Section Officer/Asstt. Audit Officer/Branch
Officer with the Departmental Officer, as the case may be. Objections which are finally
settled on which no further action is required, will be dropped and the remaining objections
taken up through Special Letters, Part I and Part II Inspection Reports in accordance with the
instructions contained in Para 456 of Railway Audit Manual. In vie of introduction of
Ranking system by Headquarters office, it has been decided by Principal Director of Audit
that special letters arising out of Inspections are to be first included in the Part. I AIR and
371
issued. By adopting the procedure special letters also earn points under the
Ranking systems. Subsequently these paras may be converted as special letters and issued
accordingly by closing the para in Part. I AIR. The Branch Officer should exercise great care
in the classification of the Paras for the purpose of Part I and Part II Inspection Reports.
Irregularities which were pointed out during the previous inspection, but which have not been
rectified and are noticed during the subsequent inspections also should be highlighted in the
current reports. When the Audit party inspects an office/station, it should take along all
previous outstanding Inspection Reports and Special Letters relating to that office/station and
review the position. Wherever action is found to have been taken, the Paras may be closed
even if formal replies might not have been sent. Objections on which adequate action has not
been taken and which are still considered relevant and important should be updated and a
fresh Para may be included in the latest Inspection Report. The review of old outstanding
objections should be included in one of the important items to be done during inspection of
all Offices/Stations. Outstanding amounts yet to be recovered should be got entered in the
Objectionable Items Register while agreeing to close the objections. During the subsequent
inspection/review of Accounts Office work, it should be checked whether all the recoveries
agreed to be made are effected.
While drafting the Inspection Reports, the following preamble should be
incorporated in terms of Para 6.1.20 - Part I of Manual of Standing Orders (Audit).
a) Introductory.
b) Outstanding objections from previous reports in brief, and
c) Schedule of persistent Irregularities.
Part I Inspection Reports/Special Letters shall be issued only with prior
approval of Principal Director of Audit. While approving Part I Inspection Reports for issue,
important Paras (which have scope for being developed into draft paras), specially identified
by the COR Section and approved by the Principal Director of Audit, shall be advised to
Branch Officers. Closure of all such Pt.I paras should be considered only after obtaining the
approval of Principal Director of Audit. All other paras where the Administration has taken
appropriate action can be closed by the Branch Officers themselves. Special Letters should
be closed only with the prior approval of Principal Director of Audit. Copies of the Special
Letters Category 'A' are to be endorsed to Branch Officer(Reports), P.A. to Deputy
Director/Director besides COR Section and to concerned Headquarters Section, when
required. COR Section will maintain a record of such Special Letters and submit the Register
by 10
th
of every month to Principal Director of Audit through Deputy Director/Director.
Final draft inspection report should be submitted to Principal Director of Audit within 7 days
of completion of the inspection.
(Authority: 1) Au/COR/I/Vol.III/33, dt.13.4.1988, 2) Au/COR/I/Vol.IV/13
dt.13.4.1992 as corrected; 3) )Au/COR/I/Vol. VI dated 09.12.2004)
A Top Sheet as indicated in Annexure VIII, IX, X & XI as applicable is to be
submitted by Branch Officer to the G.O. concerned and after completion of inspection duly
explaining the reasons for issue of NIL reports, if any. (Para 9.3 Report of the Committee
on RANs)
372
The Inspection Reports (Part I/Part II), Special Letters etc. should be issued
under a covering letter (format given in the Annexure V) to the Executive Officer concerned
with copy to the Accounts Officer and authorities concerned within a maximum period of one
month from the date of completion of inspection. Any delay in the issue of inspection reports
should be reflected in the monthly arrear report explaining the reasons therefor.
For each office inspected, the duplicate copies containing the remarks of the
office inspected and triplicate copies of draft (preliminary) observation slips should be filed
in separate bundles.
1612. Register of Progress of Inspections: The Register of Progress of Inspections should
be maintained as prescribed in Para 426 of Railway Audit Manual and submitted to Branch
Officer and Deputy Director/Director monthly.
(P.O.O. No.99 dated 11.2.1987).
1613. Review of Major Works: The works under Review of Major works have been
categorized into (1) Those costing over Rs. 5 crores and (2) works costing between Rs. 1
crore and Rs. 5 crores - works under first category (above Rs. 5 crores) have to be taken up
when expenditure is 25% of the total cost review to be followed by subsequent 3 reviews
when expenditure on that week exceeds 50%, 75% and 100% of the sanctioned cost. Works
under category (2) are to be reviewed in two stages after actual expenditure exceeds 50% and
100% of sanctioned cost. Composition of party and duration of inspection is as under.
Category Party No. of days B.O.s Supervision
1 2 A.Au.O.s/S.O. /
1 Sr.Ar./Ar.
5 days 5 days
2 1 A.Au.O. /
1 Sr.Ar.
5 days 3 days
(Authority:Para 4.2.2 of Report of the Committee on Railway Audit Norms)
In addition, one or two COMPLETED WORKS selected by Principal Director
of Audit should also be reviewed every year. These reviews are treated as inspections and
should be included in the inspection programme. (CAG's Lr.No.46-RAI/17-9/92
dt.11.1.1993).
(b) A major work may be deemed to be completed only when the work is
completed in all respects and all adjustments including payment of contractors' bills,
adjustment of stores debits etc. relating to the work are made and completion report thereof
drawn up. Till then it should be treated as work in progress.
In cases where the review could not be completed in all respects due to non-
passing of contractors' bills etc.) all such pending items may be noted and reviewed at the
time of next inspection of the major work.
List of items to be checked during the review of major works is given in
Annexure VI to this Chapter.
373
1614. Check of royalty paid by Book Stall Contractors: Book stall contractors pay royalty
to the Railway on the basis of the sales duly certified by their Auditors. During the
inspection of the Chief Commercial Manager's office, the royalty paid by the book stall
contractors should be examined to ensure that it is in accordance with the agreement entered
into by the Railway with the contractors and on the basis of the sales figures certified by the
Firm's Auditors.
1615. Verification of cash in hand with the Chief Cashier, Divisional Cashier and
Cashiers during surprise visits: In accordance with the instructions contained in Para 61 of
Secret Memorandum of Instructions regarding Extent of Audit, the cash in hand with the
Chief Cashier, Divisional Cashier/Cashier may, during surprise visits, be reconciled with the
cash book at the discretion of the Principal Director of Audit preferably once a year. The
procedure detailed below should be followed for the verification of cash.
The physical verification of cash with the Chief Cashier, Secunderabad and
Regional Cashiers need not be conducted. It should, however, be ensured during the
periodical inspections of the Chief Cashier's office/Regional Cashier's offices that the internal
check authorities have carried out a verification periodically as prescribed and that the results
of such checks have been indicated on record. The imprest cash with the Chief
Cashier/Regional Cashiers may be verified during the periodical inspections.
The surprise verification of cash with the Divisional Cashiers and Cashiers at
outstations should be carried out to the extent prescribed.(Secret P.O.O.No.10 of 6.11.1985).
Whenever verification of cash is done, the cash should be counted by the
Railway official who is incharge of the cash and not by the Audit staff. The result of the
verification should, however, be recorded in the Cash Book by the Branch Officer/Asstt.
Audit Officer/Section Officer supervising the verification and the same should be got attested
by the departmental official concerned.
1616. Traffic Audit Inspection: For the purpose of Audit and Inspection, the stations are
classified as Very Big, Big, Major and Minor on the basis of the earnings of the stations as
well as other important factors like volume and complexity of traffic. Big stations are
divided into different units like passenger, parcels(inward/outward), goods(inward/outward)
and each unit is treated as Very Big, Major or Minor station and selected for inspection
according to the extent prescribed.
The programme of the Traffic Audit Section should be kept confidential.
Before recommending names of stations for Principal Director of Audit's
approval, the special features of the station such as the existence of sidings, seasonal traffic,
booking of special commodities, earnings and any special facilities afforded should be taken
into account. The position of missing returns may be ascertained. The latest Travelling
Inspector of Accounts' reports should also be referred to. These points should be brought out
in the note submitted to Principal Director of Audit for making selection of stations. As far
as possible, stations having some special features such as sidings, heavy pilgrim traffic, heavy
parcels or goods loading should be selected for check.
374
The checks conducted during station inspection generally follow the pattern of
checks conducted by the Travelling Inspector of Accounts. The general and other items to be
seen during the inspection of stations are given in Annexure VII(i) to VII(iv) to this chapter.
The list of items is not, however, to be taken as exhaustive.
In addition to the points already being looked into during Station Inspection,
the audit party should watch closely the general working of the station and if any possible
leakage of revenue is suspected due to almost regular misdeclaration of consignments or
ticketless travel, a surprise check of the station by the Railway Administration may be
suggested. The system of allotment of wagons could also be reviewed to see that covered
wagons are not demanded for non-perishable materials, which sometimes lead to Railway's
providing open wagons for perishables, accepting liability for damages enroute.
The handling contracts and their execution and recovery of siding charges
should be intelligently checked during local inspection. The refund of fares and freight and
payment of compensation claims should be scrutinised with reference to the documents of
both outward and inward stations. The scope of local audit should also include the check of
claims originating at the station locally inspected. For this purpose, station inspection parties
may send a list of claims cases noted by them to the Traffic Audit Section, who should
scrutinise these cases in detail with reference to the local information furnished by the Traffic
Audit Inspection Section.
In respect of transhipment points, handling bills may be reviewed by sending
local audit party at the said point, besides the checks exercised in Central Audit. Some
stations which are transhipment stations should be selected for local audit every year. Such
audit parties need not always be supervised by Branch Officer.
As regards review of handling bills relating to transhipment sheds located
away from the stations, they should be included in the list of stations for the purpose of
selection for audit and inspection.
While check of accuracy of accounts has to be done, importance should be
given to other spheres of transportation activity of Railways, such as wagon placement
timings and recovery of haulage charges, routing of traffic, claim position vis--vis
prescribed packing and handling procedures etc.
Remarks of the Station Master should be obtained on the spot against each
draft (preliminary) observation slip.
b) There shall be a Headquarters cell in the Traffic Audit Inspection Section
which will attend to all items of Headquarters work pertaining to the Inspection section, such
as comparison and issue of approved Inspection Reports, all correspondence relating to the
Inspection section, maintenance and submission of Registers and Returns etc. This cell will
put up papers to the Branch Officer(Traffic Audit Inspection) whenever they are available in
Headquarters and at other times to the Branch Officer(Traffic Headquarters).
The Headquarters Inspection Cell shall ensure that Inspection Reports, Special
Letters, outward reference letters etc. are typed and issued within the prescribed period after
they are finalised by the inspecting Branch Officers. Typed Part I Inspection Reports/Special
Letters etc. shall be signed by the Branch Officer(Traffic Audit Inspection) whenever they are
available in Headquarters and by the Branch Officer(Traffic Audit Headquarters) on other
375
occasions. Part II Inspection Reports will be signed by the Asstt. Audit Officer of
Headquarters Inspection Cell.
On completion of each inspection, the supervising Branch Officer should put
up to the Principal Director of Audit a note of important objections noticed in respect of
which it is desirable to undertake a comprehensive review. Such reviews, if approved by the
Principal Director of Audit, will be under-taken by the Branch Officer(Traffic Audit
Headquarters).
A "Top Sheet" vide Annexure VIII should invariably be submitted by the
Branch Officer to the Group Officer concerned, after completion of the inspection duly
explaining the reasons for issue of "NIL" inspection reports, if any (Reference to Para 9.3 of
Report of Committee on RANs)
1617. Inspection by Accounts Office: The Inspection Section should see that appropriate
instructions have been laid down for the conduct of inspections by the Accounts Office, duly
providing an element of surprise in cases where necessary. It is also to be ensured that the
Accounts Inspection staff carry out the prescribed programme. Filed Inspection Reports of
the Accounts Department should be reviewed to the extent prescribed.

376

STATEMENT SHOWING THE ADDITONS TO/DELETIONS FROM THE LIST OF MAIN/SUB-OFFICES
COMPARED WITH THE LIST OF OFFICES TO BE INSPECTED IN THE PREVIOUS YEAR

Name of Main/Sub-Office Date of Opening Date of closure Remarks

Part II - Proforma for Annual Inspection programme of__________________________
for the year _________________________

S.No. Name of the Periodicity When last Duration Composi- Whether Extent of Sub-
Office of audit inspected of inspe- tion of Insp- coming G.O. super- Offices
inspection by Audit/ ction ection party under vision as per to be
Accounts scheme Annexure inspe-
Of I.I. --------------- cted
Main Sub-
Office Office
(e.g.) Dec 2000/J an 2001
1. C.P.O. Annual 9/99 NA 25 days 2 SOs/AAuOs Yes 13 days - -
&10/99 & 1 Ar. (50%)
Feb/Mar 2001
2. Passes issued by " 11/99 NA 4 days 1 S.O. & No Nil - -
FA&CAO, 2 Ars.
Imprest etc.
NOTE: 1) The inspections of all offices to be done in each month should be grouped and indicated as per example given above. Percentage of
Gazetted supervision adopted should be indicated in brakets. Secret inspection like Surprise Check of Cash Office, Cashier's account etc. should
not be exhibited in the copy furnished to the Accounts Office.

377
ANNEXURE - II (Para 1604)
REVISION OF DURATION OF STANDARD TIME ALLOWED FOR VARIOUS
INSPECTIONS AND COMPOSITION OF THE PARTY
C.S. No. 2 of 04/2002
******
S.No. Name of the Inspection Duration
Headquarters Number of days
1. General Manager's Office including
CPRO, Vigilance and Statistics - Personnel 4
Non-Personnel 18
2. CME's Office - Personnel 4
Non-Personnel 42
(including sub-office)
3. Chief Engineer(Open Line) - Personnel 4
Non-Personnel 50
(including sub-offices)
4. Chief Operations Manager including Power Branch
Personnel 4
Non-Personnel 50
5. Controller of Stores - Personnel 4
Non-Personnel 44
6. CSTE - Personnel 4
Non-Personnel 29
7. CCM -Personnel 4
Non-Personnel 36
(including sub-offices)
8. CEE - Personnel 4
Non-Personnel 32
(including sub-office)
9. CMD - Personnel 8
Non-Personnel
10. Chief Cashier including DPM Headquarters Office
Personnel and Non-Personnel 10
11. CSC - Personnel and Non-Personnel 8
12. IRISET -Personnel and Non-Personnel 15
13. CPO - Personnel and Non-Personnel 25
14. Passes issued by FA&CAO, Imprest, dead stock etc.
of FA&CAO's office 5
15. Zonal Training Centre 8
16. Railway Claims Tribunal - Personnel and Non-Personnel 8
17. M.D.(RH)/LGD - Personnel and Non-Personnel 8
378
18. Staff Canteens of Accounts, FA&CAO and IRISET - 24
Personnel and Non-Personnel
19. Commissioner of Railway Safety - Pass Account and 2
Passes issued to be checked
20. Railway Recruitment Board - 8
21. R.P.F. Training School, Maula Ali - 8
22. Railway Degree College - Personnel and Non-Personnel 11
including subsidized Hostel at Bhoiguda, Secunderabad
as sub-office.

DIVISIONS:
1. SR. DEN - Personnel 4
Non-Personnel 8
AEN 3
SE(P.Way) or SE(Wks) 2
2. DEN - Personnel 4
Non-Personnel 8
AEN 3
SE(P.Way) or SE(Wks) 2
3. DME(Power) - Personnel 4
Non-Personnel 8
Check of mileage bills(loco staff) 16
4. DME(Carriage & Wagon)
Personnel 4
Non-Personnel 8
5. DOM(Operating) including DSO
Personnel 4
Non-Personnel 8
Area Manager 3
Y.M. 2

Check of mileage bills of running staff 16

Sub-offices - SS, SM 2
6. DEE - Personnel 4
Non-Personnel 6
Electrical foreman, Train lighting inspector 2
7. DSTE - Personnel 4
Non-Personnel 6
Signal Inspector 2
379
8. DCM - Personnel 4
Non-Personnel 6
9. Divisional Security Commissioner 7
Inspector, Sub-Inspector 2
10. Sr.MS/DMO 5
ADMO 2
Sanitary Inspector 1
11. DPO(Proper) 7
12. Catering Units 4
13. J unior colleges 3
14. Upper Primary schools 2
15. Primary School 1
16. Check of passes issued by SR.DAO
Imprest account etc. including DPM 4

WORKSHOP AND STORES INSPECTIONS
1. Shop Inspections 3
2. Dy.DME (Shop)'s office 9
3. SEE(Workshop) 7
4. Dy.CSTE(Shops) 9
5. Press Superintendent - Personnel & Non-Personnel 12
6. Bridge Engineering Workshop 7
7. DCOS(Personnel) 8
8. DCOS(Non-Personnel) 8
9. Departmental Canteen 5
10. Passes issued by SAO/W&S check of imprest etc. 4
11. Stores depots 3
12. P.Way/Diesel Depots 5

CONSTRUCTION UNITS
1. CE(Personnel and Non-Personnel) 12
2. Dy.CE/DEN(Construction) 5
AEN(Construction) 2
SE(Wks) 2
3. Dy.CE/DEN(Survey) 5
SE(Wks) 2
380

3A. CSTE/C/SC
4. Sr.DSTE/DSTE(Construction) 5
ASTE(Construction) 2
SE(Construction) 2
Dy.CEE/Wks/SC
5. DEE(Construction) 5
AEE(Construction) 2
EF(Construction) 2
Dy.CSE/DEE/GC/SC
Dy.CPO/Wks/SC
Dy.COM/GC/SC
Dy.COS/C/SC
6. Passes issued by SAO(Construction)
Check of imprest, dead stock etc. 4

COMPOSITION OF INSPECTION PARTY
a) Inspection of Executive Offices and Offices of Heads of Departments
i) Personnel matters One Asstt. Audit Officer and One
Auditor
ii) Non-Personnel matters One Asstt. Audit Officer with one/
two Auditors
b) Minor Executive Offices One Asstt. Audit Officer and one/
two Auditors
c) Important offices falling Two Asstt. Audit Officers and
under the scheme of one Auditor
intensified inspections
d) Station Inspections
i) Very Big stations Two AAuOs and one Auditor
ii) Big Stations 1 A.Au.O. / 1 Ar.
iii) Major stations One AAuO and one/two Auditors
iv) Minor station One AAuO with one/two Auditors
e) Workshop(Individual shops May be conducted by 2 Auditors and
in a Workshop) supervised by AAuO.
f) Stores Depot:
i) Receiving and despatching One AAuO and two Auditors
section
ii) Depots manned by ACOs/DSK
g) Surprise verification of cash
i) Verification of cash with One AAuO and one Auditor
Travelling Cashier
381
ii) Verification of cash with Divl. Audit Officer, AAuO and one
Cashiers/cashiers at Auditor
Headquarters.
Note: 1) The offices manned by Assistant Officers functioning as Executives with Powers
similar to Executive Officers/Divisional Officers with separate Budget allotment are to be
treated as important offices for the purpose of inspection.
2) The inspections in respect of sub-offices viz., SE(P.Way), SE(Wks), VRR, CTXR and
minor executive offices such as Hospitals under AMOs, Railway Schools, depots manned
by ACOs/DSKs, receiving and despatching section and individual shops in a Workshop
may be conducted by Section Officer/Asstt. Audit Officer and supervision by Branch
Officer is not necessary.

382
Annexure III
(Enclosure to Para 1606)

LIST OF IMPORTANT OFFICES FOR WHOSE INSPECTIONS ASSISTANCE IS
PROVIDED BY INTENSIFIED INSPECTION CELL

Section Railway Office No.of days Periodicity
1. IHQ CPO 25 Annual
CSTE & CSTE/MW 24 "
COPS,CSS,CFTS,CPTS 25 "
CCM,CCO,CM & SS 24 "
CEE,CESE 16 "
COS 33 "
CE(OL),CTE,CGE,CBS,CSE 33 "
CME,CWE,CRSE 25 "
2. DIVISIONS SR.DENs, DENs
SC:HYB:UBL SR.DME, DME 12 each "
GTL & BZA SR.DOSs & DOSs
DRMs, SrDEEs,DEEs
(Proper), SrDCMs,DCMs, 9 each "
SrDSTE, DSTEs
3. CON CAOR/SC including 24 each "
UNITS CE-I & II
SC,BZA,
RJ Y
DENs,DEEs,DY.CEE(HQ)/ 5 each "
SC, SrDEN, Dy.CSTE
5. W&S Units CWM/LGD 9 "
Dy.COS/M&E/LGD 12 "
CWM/S&T/MFT
CWM/UBL

383
Annexure IV(Para 1609)
Part I(A) - Items common to all Heads of Department Offices:
I) Sanctioned strength and distribution of staff of various categories according to
percentage laid down by the Board (All Heads of Departments)
II) Special Works, Trials and experiments carried out under the orders of the Railway
Board or other authorities(All Heads of Departments).
Part I (B) - Special points to be seen during the inspection of Heads of Department Offices.
(A) Office of the General Manager.
1) Log book of office staff cars and petrol account.
2) Review of sanctions of grants to outsiders.
3) Issue of Passes to quasi-railway departments and other than Railway employees.
4) Review of sanctions issued by General Manager and Sanctions Register.
5) Allotment of Officer's Bungalows.
6) Review of the fixation of out-turn for payment of special pay to operators of various
machines.
7) Travelling Allowance Bills of members of Advisery committees on Railways.
8) Progress Report of Work Study cell.
(B) Office of the Chief Public Relations Officer.
1) Advertisement Bills payable by Railways
2) Charges for public advertisements exhibited at stations, Yards, Trains and Time Tables
etc. due to Railway.
3) Examination of the revision of rates charged to public.
4) Tenders and Contracts.
5) Charges incurred in connection with the publication of weekly news items.
6) Hospitality Fund expenses and furnishing statements of expenditure to the General
Manager.
7) Review of the Administrative Reports.
8) Expenditure on brochures "South Central Railway News Bulletin" and staff letter etc.
(C) Office of the Chief Engineer.
1) Special works, trials and experiments carried out under the orders of the Railway
Board etc.
2) Work Orders.
3) Payment to Municipalities.
4) Procurement of sleepers and accounts of sleepers
5) Tenders and contracts
6) Standard Schedule of Rates(SSRs)
(D) Office of the Chief Commercial Manager.
1) Review of statistics compensation claims including the cause-wise and commodity-
wise statements of claims received from the Railways arranging payment of the
claims and reports furnished to Railway Board.
2) Refund of over charges.
3) Concession to public
384
4) Remission of wharfage and demurrage
5) Licencing of land, cycle stand etc.
6) Licensing of stalls
7) Accountal of salable tariffs
8) Test weighment of newspapers parcels
9) Handling contracts
10) Street delivery contract and out-agency contracts
11) Siding charges
12) Debit Register and Excess Fare Ticket Register.
13) Review of Headquarters Travelling Ticket Inspection Section.
14) Review of the earnings of the Ticket checking examination.
15) Payment of conveyance allowance to honorary magistrates and their accountal
16) Review of the working of Marketing and Sales Organisation.
17) Review of Station to Station rates for attracting goods traffic.
18) Awards given by the Railway Rates Tribunal.
(E) Office of the COM:
1) Hire and haulage charges account with IRCA
2) Saloons of high officials
3) Postal Vans
4) Special Trains
5) Utilisation of Special Type of Wagons
6) Railway Accidents - Reports and payment of compensation
7) Agreements entered into with the contractors for printing Time Tables and Maps.
8) Fixation of commission for sale of time-table by book stall keepers.
(F) Office of the Chief Electrical Engineer
1) Special works, trials and experiments carried out under the orders of the Railway Board
etc.
2) Work Orders.
3) Review of agreements regarding purchase of Electricity from outside sources.
4) Fixation of rates for the supply of Electric emergy to Railway Employees and outsiders.
5) Tenders and Contracts.
(G) Office of the Chief Medical Director
1. Purchase of medical stores
2. Stock ledgers of the Medical Depot attached to the CMD's office.
3. Charges paid to private/Government sanatoria for the treatment of Railway servants for
T.B.
4. Expenditure on Family Planning
5. Acceptance of gifts by Railway hospitals and accountal thereof.
(H) Office of the Controller of Stores.
1. Examination of Indents for Stores
2. Scrutiny of sanction to quantity and purchase through programme indents placed on the
DGS&D.
3. Disposal of overstock and surplus stock
4. Operation of items covered by ISD for schedule demands
385
5. Landing Bills
6. Receipt custody and disposal of samples
7. Review of reasonableness of indents and end use of stores specially items costing Rs.
50,000/- and above.
(I) Office of the Chief Mechanical Engineer.
or other authorities.
2) Work Orders.
3) Reports relating to incentive scheme and working of the same.
4) Rolling stock account and proposals for additions and renewals; Delay in installation and
commissioning of Machinery and Plant.
5) Postal Vans
6) Utilisation of special type of wagons, and maintenance thereof
7) Introduction of dieselisation and working of the Diesel Engines
(J ) C.S.T.E.
etc.
2) Work Orders.
3) Reports relating to incentive scheme and working of the same.
4) Working of the Microwave Communication System.
5) Bills for hire of P & T Wire
NOTE: (Other items included under the various Divisional Offices should also be looked into
during the inspection of the HOD offices concerned).
Part I - (C):
(A) Divisional Railway Managers (Operating and Mechanical).
1) Mileage bills of Loco staff
2) Mileage bills of Traffic staff
3) Payments of out-turn allowance to Signallers and Teleprint Operators.
4) Payment of Cash Awards, if any.
5) Agreement with contractors for coal handling work and miscellaneous work
6) Recovery of charges for engine hire, wagon repairs, supply of water or any other service
tendered to other Government Departments, local bodies and other departments of
Railway
7) Coal Survey Sheets
8) Working of Imprest system in Loco and C&W sheds.
9) Register of relieving staff.
10) Accounts of Transportation Workshops, if any.
11) Saloons -allotment and movement of
12) Postal Vans and Postal Bills
13) Account of first-aid equipment
14) Mileage run by locos between successive POHs
15) Incidence of hot axles
16) Fuel consumption Statements
17) Hire of locomotives
386
18) Idle Machines
19) Sale of Cinder to employees and correctness of fixation of rate thereof.
20) Guards and Drivers links
21) Scrutiny of Trip rations for coal and oil issued to drivers.
Loco Sheds and C & W Depots:
1) Verification of Coal handling bills with shed documents(Loco shed)
2) Shed returns(T.323) comprising:
i) Exchange book(G.210 F)
ii) Stock Register (G.291.B).
iii) Coal Checker's Register
iv) Coal Charging Register
i) Coal issued to each Driver or Engine(T.41)
ii) Daily issue of coal - summary of Daily issues(T.402)
3) Weigh bridge inspection
4) Time Board (Loco Shed and C&W Depots)
5) Stores Accounts ( -do- )
6) Numerical ledgers ( -do- )
7) Consumption of coal with reference to the scale fixed (Loco shed)
(B) Branch Stores Offices and Stores Depots under Stores Department or Engineering
Department:
1) Local Purchase orders with day books and bills passed
2) Penalties waived or imposed
3) DS8 Register.
4) Auction Sale Account
5) Crane Charges
6) Clearance of material sale Delivery Notes and recovery of ground rent, if any.
7) Inspection of issue wards.
8) Recoupment of Stores
9) Scrutiny of sanction to quantity and 'purchase' through programme indents placed on the
DGS & D.
10) Fixation of maximum and minimum
11) Disposal of surplus and overstock of materials
12) Newly purchased material classified as surplus
13) Survey Committee Reports
14) Sale of Stores and scrap to Railway employees and outsiders
15) Material issued on loan
16) Accountal of empties
17) Delay in release of loaded wagons and demurrage, if any, incurred
18) Accuracy of weighing machines and weigh bridges.
19) Register of samples and accountal of patterns
20) System of stock verification to see that verification is not confined to those items the
stocks of which are low.
21) Accounts, custody and disposal of scrap
22) Arrangements for safe custody of valuable and easily removable articles
23) Accountal of rejected stores
24) Entrusting printing work to outside presses(DCOS(G))
387
25) Timber shed
26) Purchase of Stationery(S&F Depot)
27) Printing of Books and Forms(S&F Depot)
28) Tracing of postings of receipts and issues of Stores on depot stock and custody account
into numerical ledgers (Engg. & S&T Depots)
29) Custody Stores Account(Engg. & S&T Depots)
30) Unloading Register. -do-
31) Day Book of receipt
32) System of verification of received stores with specification and quantity actually received
33) Register of purchase orders
34) Review of reasonableness of indents and end use of stores specially items costing Rs.
50,000/- and above.
35) Receipt Notes
36) Arrangement for Inspection and valuation of returned stores (in returned stores ward if
maintained separately).
37) Procedure for verification of quantity and quality of stores issued from stock
38) Register of requisitions
39) Issue Notes
40) R.R.Register
41) Lorry Log Books
42) Claims Register
43) Gate Passes
44) Challans
45) Railway Materials Consignment Notes and Credit Notes
46) Numerical Stock Cards(when maintained with Depot Store Keeper)
47) Review of Register for stock items covered by indemnity
(C) Engineering Offices(Civil, Electrical, S&T and Construction)
1) Engagement of Special labour
2) Sale of Grass
3) Review of Works register
4) Audit of completion reports of works costing less than Rs. One lakh
5) Rate slips and rates register
6) Register of measurement books
7) Work Orders
8) Measurement Books
9) Contractors Bills
10) Adjustment Voucher
11) Siding Register
12) Material-at-site Account
13) Ballast Register
14) Ballast Train J ournals
15) Sale of Coal Ashes
16) Sale of wooden sleepers
17) Register of trees
18) Contractors Ledgers
19) Land Registers and Register of cases of encroachment on Railway Land
20) Register of Bridges, Register of level crossings
21) List of completion drawings
22) Register of buildings leased to outsiders
388
23) Field Time Books
24) Work Charged establishment
25) Comparison of Railway rates with Civil rates
26) Register of classification of soil and cases of re-classification of soil
27) Following items in AEN's Office.
i) Record of AEN in regard to witnessing of payment to staff
ii) Register of Engineering Vehicles
iii) Credit Notes
iv) Thumb Impression Register
28) Motor trolly log book, petrol and consumable stores, use of concrete mixers, pumpsets,
road rollers etc.
29) Inventory of materials laid in the track
30) Need, utilisation and replacement of battery cells
31) P & T Telephone Bills
32) Trunk Call Bills
33) Review of Register of Service Buildings
34) Register of residential buildings
35) Register of land leased to outsiders(DEN's office only)
36) AEN's Workshop
37) Tally Cards and field time books
38) Reconciliation of field time books with job cards
39) J ob Cards
40) Accounts of materials issued to contractors
41) Review of register of rest houses
42) Engine hire bills
43) Manufacture Accounts
44) Check of movement shown in T.A. Journals with dates of records of measurement
45) Review of deposit works
46) Electricity Purchase Bills(Electrical Department)
47) Supply of Electricity to outsiders(Electrical Department)
48) Accounts of fans and other loose electric fittings(Electrical Department)
49) Engineering Plant reserve - Hire to other Government Departments and outsiders
50) Hire of Railway property
51) Meter reading statement and Electricity Bills(Electrical Department)
52) Power Houses working of - Power Cost Statements(Electrical Department)
53) Coal Account and Stores Account of Power Houses
54) Review of reasonableness of indents and end use of stores specially items costing
Rs.50,000 and above.
NOTE: Civil Engineering Workshop at LGD - Test audit of Accounts of the Workshops
should cover all items as per Workshop audit programme including inspection of sub-shops.
(D) Divisional Commercial Managers Office.
1) Busy season staff
2) Agreement regarding goods handling work etc.
3) Lease of plots of land
4) Recoveries from sweetmeat contractors
5) Recoveries of excess fare
6) Refunds and remission of wharfage and demurrage
7) Recoveries of fees etc. from Vendors
389
8) Indemnity Bonds
9) Review of Divisional Railway Manager's report regarding Ticketless travel
10) Review of recoveries from station staff on account of accounts and its debits
11) Account of badges issued to station hamals
12) Roster of duties of ticket checking staff
13) Register of relieving staff
14) Issue of concession certificates
15) Agreements for cycle stands
16) Compensation claims statistics and working of the claim prevention organisation
17) Refund Orders
18) Clearance of station outstandings
19) Arrangements for sale of tickets at train halts
20) Accountal of saleable publications, viz. Tariffs, Time Tables, Concession Order Book,
Railway Service Commission Forms etc.
21) Departmental Catering
(E) Medical Department:
1) Indoor Patients Register
2) Diet charge recovery statement
3) X-ray charges recovery statements
4) Register of Medicines, Instruments etc.
5) Register for supply of contraceptives to Railway employees and recovery of cost thereof
wherever necessary
6) Breakage and loss statement
7) Distribution of conservancy staff
8) Medicines from staff benefit fund
9) Register of Outdoor patients
10) Linen Account
11) Fees to non-subsidised surgeons and other Government Medical Officers or private
practitioners for services to passengers and other persons injured in accidents
12) Financial expenses
13) Expenditure on diet
14) Accounts of provisions and vegetables issued to cooks
15) Accounts of milk, stock ledger of medicines, indents, issue notes and stock verification.
16) Local purchases
17) Accounts of first aid boxes
18) Log books of ambulance cars
19) Accident relief medical equipment vans
20) Sales including sale of rubbish
(F) ACME/DCME's Office including Office of Chemist Metallurgist and Laboratory
Accounts.
1) Sanctioned strength of Workshop staff and its distribution among the various sub shops.
2) Trade Tests and promotion of workmen from one category to another
3) Special Works-trials and experiments
4) Accountal of furniture, loose fittings released from rolling stock
5) Indenting of Stores for special works, programmed work and repairs
6) Overtime to workmen
7) Control over shop outturn
390
8) Sale of firewood and scrap timber to Railway Employees and outsiders
9) Accountal of scrap released
10) Work orders issued by CME, CE(OL), ACME, Asstt. Bridge Engineer, Review of
expenditure, allocation.
11) Incentive Scheme - Working of
12) Machinery and Plant - Installation of
13) Machinery, Tools and Plant Register
(G) Catering Units:
1) Review of profit and loss account
2) Profit and Loss on items prepared as per formulae
3) Vendor's Accounts
4) Purchase, out of catering earnings
5) Debits against staff and vendors
6) Loss of cooked food
7) Cash remittance
8) Sales Cash Book
9) Provision Indents and Bills
10) Stall Keeper's Ledgers
11) Collection and remittance of sales tax
12) Daily transactions account
13) Stores Ledger work
14) System of verification of stock of provisions
15) Coupon system
16) Credit Sales
(H) Chief Cashier's Office:
1) Receipt and remittance of a day
2) Cash with cashier for a day
3) Indemnity Bonds
(I) Printing Press:
1) Muster Roll
2) Time Office
3) Work Orders
4) Stores Account
5) Work done for outsiders
(J ) R.P.F. Training School:
1) Armoury Account
2) Clothing Account
3) Messing Arrangement
(K) Staff Training School:
1) Messing Arrangements
2) Pay and Allowances of Trainees
3) Expenditure on equipment, libraries etc.
391
(L) Schools:
1) Recovery of school fees from staff and outsiders
2) Clothing Account and uniform supplied to children
3) Expenditure on stationery and books
4) Annual Receipt and expenditure Accounts
5) Realisation of grant-in-aid from State Governments
6) Library Books
(M) Subsidised Hostels:
1) Eligibility of residents for admission
2) Recovery of messing charges
3) Review of working of hostel
(N) Office of the Assistant Security Commandant (or) Commissioner NSR:
1) Verification of Reward Imprest
2) Register of Punishments
3) Register of thefts detected by or reported to the Protection Force and Final action taken
thereon
4) Monthly report of losses due to thefts
5) Register of Missing fittings reported to the Protection Force
6) Log Books of motor van etc. and petrol account
7) Allotment of motor cycles to Inspectors of Security Force Scheme to be reviewed.
8) Fire Service Organisation - Maintenance of
9) Supply of Kit and clothing
10) Clothing and equipment stock book
11) Individual uniform register
12) Movement Orders Register
13) Index of Travelling Allowance Claims
14) Quarters Allotment Register
15) Arms and Ammunition issue and Return Register
16) Crime Register
17) Damage and deficiency message report
18) Case Property Register
19) Register of shortages and damages from seal - intact wagons(Inward and Outward).
(O) Items Special to Civil Engineering Workshop - Lallaguda
1) Review of Works Register
2) Audit of Completion Reports - Rs. 1 lakh and less
3) Contractor's Bills
4) Firm's Bills
5) Adjustment Vouchers
6) Material-at-site account
7) Work Orders
8) Time Office
9) Issue and Receipt Notes
10) Tally Cards
11) Gate Passes(Stores and Labour)
392
13) Workshop Account Current
14) Special Labour and Work charged establishment
15) Proforma on cost budget
16) Shop and General on cost percentages
Part II-A - Items common to all offices:
1) Payment under Wormen's Compensation Act(Common to Divisional Offices)
2) Sanctioned strength
3) Leave accounts including the staff due to retire, prior to the end of the year in which next
inspection is due
3a) Comparison of leave accounts with attance register/muster rolls.
4) Rent recovery
5) Casual leave
6) Attendance Registers
7) Muster Rolls, if specially maintained
8) Service Registers
9) Advance of T.A. and recovery thereof especially those granted from imprest
10) Salary bills of subordinates staff
11) Fixation of pay
12) Rent recovery and Title to rent free quarters or allowance in lieu thereof
13) T.A. J ournals of staff which are not sent to Accounts Office.
14) Increments
15) Hot weather establishment
16) Payment of local and special allowances such as Bad climate allowance etc.
17) Pay orders
18) Imprest cash
19) Miscellaneous Cash Register, receipts and remittances
20) Postage account
21) Recovery of water and conservancy charges
22) Passes and P.T.Os.
23) Dead stock and tools and plant registers
24) Stationery
25) Clothing Account
26) Recovery of diet charges
27) Miscellaneous Bills including expenditure on entertainment
28) Tenders and agreements and Register of agreement
29) Approved list of contractors and whether they are only such as have produced I.T.C.
certificate.
30) Recoveries from other Departments and outsiders for recurring and non-recurring services
rendered.
31) Log Books
32) Review of inspection Reports - Part II
33) Register of losses, statement of losses and cases of claims against Traffic Department.
34) Review of reconciliation of issue notes received from parties acknowledging receipt of
stores and corresponding copies of Inspection Notes received from Accounts Office with
the Block Copy.
35) Register of numbered books(Cash value books)
36) Register of staff liabilities
37) Security Deposit from staff entrusted with the custody of cash and stores
38) Control of expenditure, maintenance of liability register.
393
39) Maintenance of collective record of special casual leave.
40) Payment of tax, if any, for motor vehicles
41) Compensation for loss of articles booked under F.S.W.Bills.
42) Verification of Pensionable Service especially those due to retire before next inspection.
43) Withdrawal from Station earnings
44) Law charges and court cases
45) Review of handing over reports of stock holders and Stock Verification Sheets
46) Cases for local investigation
47) Recovery of test charges on samples called for in connection with tenders/stores obtained
for stock and trial purposes
48) Reimbursement of tuition fees
49) Overtime Bills
50) School Fee Bills
51) Night Duty Allowance
52) Railway Material Consignment Notes and freight bills.
53) Register of repairs to typewriters and office bicycles
54) Review of handing over reports and inspection reports of General Manager, Heads of
Departments, Divisional Railway Managers and other officers
55) Economy achieved by surrender of posts as per Railway Board's directive.
56) Surrender of posts due to dieselisation, computerisation
57) Periodical confidential D.Os.(PCDOs).
58) Material for General Manager's Annual Report
59) Working of the simplified procedure for recovery of rent, festival advance, electrical
energy etc.
60) Review of Inspection Reports of Accounts Office
61) Office copies of schedules relating to Group Insurance Scheme(Annexure 'A' and 'E' for
the month of J anuary or December are to be checked with pay bills).
62) The nominations made under Group Insurance Scheme should be checked while checking
the Service Registers.
63) Payments from insurance fund and savings fund Annexure 'B' should be checked to the
prescribed extent with reference to the table of benefits and the nominations as recorded
in the Service Registers.
64) Review of reasonableness of indents and end use of stores specially items costing
Rs.50,000 and above.
Part II(B) - Items common to Shops:
S.No. Particulars Initials of
-----------------------------------
Auditor S.O./ B.O.
/Sr.Ar. A.Au.O.
1. Gate passes
2. Time Sheets
3. Attendance Registers and Overtime Registers
4. The system of preparing M/Rolls for labourers for whom
no time sheets are prepared
5. Duty Certificate of labourers temporarily engaged out of
shops
6. The System of allocating labour to a particular work order
7. The system of accountal of stores
8. Stores charged off to works
394
9. Accounts of Stores spared from works
10. Accountal of dead stock
11. Accounts of consumable stores
12. Scrap accounts and the arrangements for the weighment of
scrap returned to stores
13. Work Order Register
14. Clothing accounts including water proof equipment and
cumblies
15. Tools and plants register
16. Accounts of Railway tools lent to private parties
17. Check of sanctioned strength with the actual strength
18. Arrangement for shift duty for labour staff
19. Miscellaneous cash accountal thereof -Imprest Cash
20. Pay Orders
21. Card Passes, Residential Card Passes
22. Passes and Privilege Ticket Orders(P.T.Os.).
23. D.S.8 and returned stores
24. Coal, Coke and Oil Accounts
25. Accountal of material issued on loan
26. Check of ticket Board
27. Actual count of labour with T/sheets and to see whether
men are actually present
28. Machinery and Plant lying surplus
29. Motor Lorry accounts, if any
30. Tally cards maxima and minima
31. Service Cards including comparison of rate of Pay with
Muster Roll
32. Leave Accounts
33. Review of incentive scheme
34. Installation and utilisation of surplus machines
35. The reconciliation of the time sheet with M/Rolls should
be test checked and large differences taken up
36. System of payment of wages etc. to labourers including the
witnessing of payments during the period of inspections.
37. System of distribution of on-cost
38. System of sending out material from shops
39. System of shop delivery notes etc. for articles
manufactured for other shops and inter shops transfer notes
of stores
40. Measurement Books
41. Cupola books or other initial records of manufacture
42. Does the cost of manufacture of similar articles at different
times vary considerably? If so, are the factors contributory
to the variation, suitably investigated and defects rectified
(Para 354 - Railway Audit Manual)
43. Recovery of non-ferrous turnings/borings from shop floor-
Accounts of boring as also arrangements for collection and
their disposal
395
(Format of the forwarding letter for issue of Part I and Part II Inspection Reports and Test
Audit Notes)
(Para 9.2.1 Report of the Committee on Railway Audit Norms)

SECUNDERABAD
No. Date:

To
(Executive Office)
--------------------------------
--------------------------------

Sub: Inspection Report -Part I

I forward herewith the Inspection Report Part I/II______ on the check of the
accounts of _________________ office done during ____________, for information and
early reply.

Audit Officer

Copy together with a copy of the Inspection Report forwarded to (Accounts Officer) for
information and early reply.
Copy to (other authorities concerned)

Audit Officer

N O T E
1. The Inspection Report sent to Accounts Officer should also be signed in full by
the Branch Officer issuing the report, the other copies may be marked as Sd/-
2. In case of open line all the reports will be addressed to the DRM who is the
administrative Co-Ordinator, and has primary responsibility for the efficient
functioning of the Division with copies to the supervision in functional hierarchy,
incharge of the unit audited and Accounts at the appropriate level. In case of
functions like CN, Workshops, Stores the IRs can be addressed to the appropriate
level, i.e., CE, CWM, COS respectively. (Para 9.2.1 RANs)
396
Annexure VI(Para 1613)
List of items to be checked during the review/inspection of major works(completed works
and works in progress).
.
Works Portion:
1) Estimate
2) Review of Works Register
3) Agreements
4) Contractors Bills
5) Contractors Ledgers
6) Work Order
8) Tracing of bills, vouchers into Works Registers
9) Financial Reviews for the work(Quarterly or Half Yearly)Progress Reports showing
financial and physical progress.
Establishment Portion:
1) Extra Labour Register
2) Labour Paysheets
3) Station Pay Orders
4) T.A. J ournals
5) Field Time Books
6) Muster Rolls
7) Attendance Register of DSK/SE(Wks)/SE(P.Way)/BRI etc.
8) Temporary Establishment - Currency and extension
Stores Portion:
1) Indents
2) Stores Bills
3) DSK's Numerical Ledgers including receipts and issues
4) Tracing of paid stores bills into DSK's Numerical Ledgers
5) Credit Notes
6) Wharfage and demurrage cases
7) Material-at-site account and return
8) Shortages and Losses
9) Account of Released Materials
Miscellaneous Portion:
1) Dead Stock
2) Tools and Plant
3) Numbered Books
4) Register of numbered books, Card Passes and other Passes and Privilege Ticket Orders
397
Annexure VII(i) - (Para 1616)
List of items to be checked
GENERAL
1. Scrutiny of withdrawals from Station Earnings
2. Review of Travelling Inspector of Accounts (TIA) Reports.
3. Examine whether Tariffs and other Books of references are maintained upto date.
4. Preparation of station vouchers in double-sided carbon. This should be ensured.
5. Scrutiny of arrangements for
i) Custody of cash
ii) Remittance of cash
to see that adequate sefeguards are taken to carry the cash to the Treasury/Bank, if the
cash is not sent to Chief Cashier through travelling safes and that there is no avoidable
delay in transmission of cash to the Treasury/Bank/Chief Cashier.
6. Transit Mema of Vouchers and Returns: It should be seen that vouchers and returns
are sent on due dates.
7. Advertisement Register: The advertisements actually displayed should be linked with
the register to ensure that they are exhibited under proper authority and that no
advertisement is exhibited beyond the authorised period.
8. Stamp Account: The balance on hand should be checked with reference to the account
maintained.
9. Review of Inspection Register maintained at the station. It should be reviewed that
irregularities pointed out have been set right. A review of the Inspection Notes of
Officers, Commercial Inspector's Reports, Traffic Inspector's Reports must also be
undertaken.
10. Review of Agreements of Outagency/Town Booking Office/Siding if any. The
Agreement should be reviewed generally.
11. Working of street delivery arrangement, if any.
12. Accountal of Tools and Plant, Stationery, Kerosene Oil etc. The Registers should be
reviewed to see whether stock verification has been done as required.
13. Muster Rolls and Attendance Register: These should be generally reviewed.
14. Check of Passes and PTOs issued by Station Master: The Passes and PTOs should be
generally reviewed with reference to Pass Rules.
15. Free Service Way Bills: To be seen that nothing other than required are despatched
free.
16. In addition, the items given in Annexures VII(ii) to VII(iv) in respect of
passenger/parcel/goods traffic are to be checked.
398
Passenger Traffic (List of Items Checked)
Particulars of
vouchers checked
1. Verification of Cash (Cash as per Cash Book, cash actually
on hand and full particulars of each and vouchers on hand
viz. Name of Voucher No. and date amount issued by
whom.
2. Inventory of luggage(Station from As per sheets
No. of packages, description etc.) attached
3. Counting of tickets on hand(name of a station to, class,
commencing and closing nos. of tickets checked - in form
TASF/Station Accounts).
4. Check of Ticket Book(No. and date of indent)
5. Check of passenger tickets shown on luggage tickets(No.
and date of luggage tickets, station to and No. and date and
class of passenger tickets).
6. Check of tickets sold including check of DTCB and
summary and check of totals of DTCB with C.R.
Notes(dates checked)
7. Check of Blank Paper Tickets, Excess Fare Tickets,
Telegraph Receipts and other Misc. Tickets. (Commencing
and closing Nos. of Tickets checked and date).
8. Register of Blank Card Tickets(Date checked)
9. Season ticket traffic (dates checked)
10. Verification of Indemnity Bonds - Application forms, Time
Tables, Guides and Tariff for sale (Bond forms Nos. on
hand verified and No. of other money value books with
their particulars).
11. Tracking of Money Receipts in DTCB(No. and date of
money receipt)
12. Check of register of numbered books, (Indent No. and date,
particulars of books verified with commencing and closing
numbers).
13. T.C.Returns(Dates checked).
14. Check of luggage & H.C.D. Tickets in luggage or Parcel
Cash Book (Luggage/Ticket No. and date from, No. to No.)
15. Check of cash book(Luggage dates checked).
16. Check of D.B. and C.R. Notes (Dates checked).
17. Check of accuracy of wharfage collected in respect of
luggage(Names of months, broken period checked during
the month of inspection and reference to items in D.B. and
page No. of D.B.)
399
18. Test check of some items of work done by TIAs(particulars
of items checked)
19. Check of items of loading book, unloading book and wagon
exchange book(dates checked).
20. Test weighment of luggage
outward and inward.
400
Parcels Traffic (List of Items Checked)
Particulars of
items checked
1. Verification of cash(cash as per cash book, cash actually on
hand and full particulars, viz. name of vouchers No. date,
amount issued by whom)
2. Inventory of parcels on hand (station As per sheet attached
from, W.B. No. and No. of packages,
description and marks)
3. Verification of indemnity bonds, (Bond and form Nos. on
their particulars)
4. Tracing of Money Receipts in parcels cash book(no. and
date of money receipt)
5. Check of register of numbered books (Indent No. and date
and particulars of books verified with commencing and
closing Nos.)
6. Check of paid outward Way Bills in parcels cash book
(Way bill No. and date (From No. to no.).
7. Check of Way Bills with reference to particulars on the
forwarding note (No. and dt. of Way Bill and station to).
8. Check of Delivery Book with Cash Book (Date checked).
9. Check of collected receipts with D.B. and C.B.
10. Check of Cash Book(Date checked)
11. Check of D.Book(Date checked)
12. Check of C.B.and C.R. Notes (Date checked)
13. Check of items in Loading Book and Unloading book(Dates
checked).
14. Check of accuracy of wharfage and demurrage
collected(Names of Months & broken period checked
during the month of inspection and reference to items in
L.B. and Page of D.B.)
15. Test weighment of Parcels
16. Check of outstanding items(full particulars of freight
outstanding admitted and non-admitted debits)
17. Check of Free Service Books (No. and date of bill and
particulars of consignee).
18. Gate pass book (No. and date of statements and amount
remitted)
19. Auction sale statement (No. and date of statements and
amount remitted)
401
20. Compensation claims settled by Station Masters(RR No.
and date, particulars of items and amount of compensation
paid)
21. Test check of some items of work done by TIAs(Particulars
of items checked)
22. Wagon Registration Fee statement (Period checked)
23. Handling bills
402
Goods Traffic (List of Items Checked)
Particulars of
items checked
1. Verification of cash(cash as per cash book, cash actually on
hand and full particulars of vouchers on hand, viz., name of
vouchers No. date, amount issued by whom)
2. Inventory of Goods on hand (station As per sheet attached
from, No. of packages, description
and marks and invoice No.)
3. Verification of indemnity bonds, (Bond or form Nos. on
their particulars)
4. Tracing of Money Receipts in Goods cash book(no. and
date of money receipt)
5. Check of Register of numbered books (Indent No. and date
and particulars of books verified with commencing and
closing Nos.)
6. Check of paid outward invoices in Goods C.B.(Invoice No.
and date
________ From No._____to_____)
7. Check of invoices with reference to particulars on the
forwarding consignments notes (No. and dt. of invoices and
station to).
8. Check of Delivery Book with Cash Book (Dates checked).
9. Check of collected receipts with D.B. and C.B.(Goods) date
checked.
10. Check of Cash Book(Goods) Date checked)
11. Check of C.B.and C.R. Notes (Date checked)
12. Check of accuracy of wharfage and demurrage
collected(Name of Month, broken period checked during
the month of inspection and reference to items in the D.B.
and page No. of D.B.)
13. Test weighment of Goods
14. Check of items in loading book, unloading book and wagon
exchange book(dates checked)
15. Check of outstanding items(full particulars of freight
outstanding admitted and non-admitted debits)
16. Check of Free Service Books (No. and date of bill and
particulars of consignee.
17. Crane and Hire statements (period checked)
18. Wagon Registration Fee Statement (Period checked)
19. Gate pass book (No. and date of Gate passes checked)
403
20. Siding statement (Name of sidings and period checked)
21. Auction sale statements (No. and date of statement and
amount remitted)
22. Compensation claims settled(RR No. and date, particulars
of items and amount of compensation paid)
23. Test check of some items of work done by TIAs(Particulars
of items checked)
24. Handling bills
404
Annexure VII(ii)(Para 1616)
List of Items to be checked (in addition to items in Annexure VII(i))
PASSENGER TRAFFIC
1. Count of Cash: Cash on hand (including imprest cash and Advance Booking
Reservation(ABR) cash) to be counted and agree with the sale of tickets(including
Platform, Reservation, Retiring Room tickets etc.) upto the time of inspection as per
Daily Trains Cash Book(DTCB) and verification of vouchers, P.T.Os. J ail requisition
military vouchers forms. Cash with Station Master/Asstt. Station Master should also be
checked.
2. Verification of lowest numbers in the tube and paper ticket books with the closing
numbers in the D.T.C.B.
3. Marking of last tickets issued from paper ticket, luggage books, receipt books etc.
4. Inventory of luggage and left luggage on hand as for Parcels.
5. Check of ticket requisition(indent book) to see that tickets supplied have been correctly
entered in the ticket stock register and that tickets are not issued (taken in the tube for
issue) out of consecutive order. Arrangements for safe custody of tickets and their
periodical verification by Railway Administration should be scrutinised.
6. Check of entries in the tickets stock book with those in the D.T.C.B. and also to see that
all stock of tickets supplied has been entered in the summary of D.T.C.B.(i.e. Passenger
classification) irrespective of the fact whether there is sale of tickets or not. Regarding
tickets issued out of series noticed by Audit, the "left out" series of tickets should be
physically verified and a certificate recorded. Also to see that there is no surplus stock of
tickets. While checking the recalled indents under which the surplus/obsolete tickets are
returned to Traffic Accounts Office, the accountal of the last ticket sold which should be
mentioned in the relevant column of the 'form' should be test checked.
7. Check of tickets sold during the broken period of the inspection. In addition, check of
totals of 3 dates(to be conducted) in the three periods of different months. Advance
Booking refunds should be checked with reference to the sale of tickets in the DTCB.
Reservation charts and the correctness of cancellation charges to see whether it has been
included as a voucher.
8. Check of credit voucher books for non-issued tickets(local and foreign). Credits for
refunds in the DTCB should be checked with the non-issued statement. To see this
acknowledgement for non-issued tickets sent has been received from Accounts Office
promptly. Refunds allowed on partially used tickets should be specially looked into.
Refunds of fares on the same day of purchase should be viewed with suspicion and
investigated thoroughly to see whether the tickets are issued and cancelled during the
same shift without actual exchange of cash.
9. Check of D.T.C.B. and summary with reference to respective books, checking of totals
for the broken period of the inspection and verifying the accountal of money receipts
issued to T.T.Es.
10. Printed card tickets on hand i.e. in Tubes and in Stock are to be counted in detail for about
5 destinations of all Classes/Categories.
405
11. Check of fares over ticket tubes and to see that correct fares in force are also exhibited
near the booking office for the information of the public. Check of fares on Halt Tickets
may also be made.
12. To see that manuscript alterations on printed ticket are made wherever fares are changed
before the tickets are kept in the tube and issued to the public.
13. Dating press: To see, if it is in order and gives clear impression of dates and that it has
been tested regularly by the Inspector.
14. Check of luggage, H.C.Dogs, Cloak room, Motor tickets into cash book and cash book
into DTCB 10 percent check of passenger tickets shown in luggage tickets with DTCB.
15. Check and accountal of:
1) Blank Paper Tickets
2) Soldier ticket books
3) Return journey vouchers
4) Excess fare ticket books
5) Telegraph receipts(should be checked with reference to draft messages)
6) Badges and Vendors' tickets.
16. Check and accountal of season ticket traffic
17. Check of time tables, guides and tariffs, RSC Application forms to see that the account of
these publications received and sold is correct.
18. Scrutiny of sundry receipts: See that moneys due from stall, fruit stall platform vendors,
Licensed Porters, Car/Auto Cycle Rickshaw/Cycle stand, license fee due from cloak room
contractors etc. are collected and remitted on due dates as per advices received from time
to time.
19. Halt Agent: The tickets sold to the Halt Agent and the commission deducted should be
verified. The balance of cash to be traced in the Cash Book. The stock of Halt tickets,
the issues to the Contractors and the balance stock to be verified with the Ticket Stock
Book. A test check of halt tickets for a few destination stations should be made.
20. Check of Ticket Collectors/TTE's Cash Book: To see that all the Excess Fare Ticket
amounts collected by the TCs are checked and accounted for in the Cash Book and the
acknowledgement of the Cash handed over to the Booking Office to be verified. Also see
that there is no delay in the accountal of cash collected by TCs. When the TTEs
Headquarters are fixed at the station, their EFTs are also to be checked for accuracy and
accountal.
21. Check of Summary Cash Book.: To see that all cash transactions are brought to the
Summary Cash Book and tallied with Cash Remittance(C.R.) Notes.
22. Check of totals of DTCB/Summary Cash Book with C.R. Notes for the broken period and
for one month of the closed period.
23. See that acknowledgements from the Cashier are received and pasted to the counter foils.
24. See that advices of internal checks are received and the error sheets issued have been
taken to account.
25. Check of closed months Balance Sheet with reference to initial records at the station.
406
26. Check of register of machine numbered books(money value books) with reference to
indents complied with. See that tickets are signed for, date of completed books recorded
against the current entries in the stock book and that the books on hand are correct.
27. Check of collected tickets and T.C. returns to see that number of missing tickets,
particularly for short distance stations is not heavy; there is no reuse of tickets and that
time-expired tickets are not found in collection.
28. Scrutiny of handing over Mema by TTEs.
29. Arrangements for prevention of ticketless travel:See that proper arrangements exist for
the collection of tickets from the passengers and that suitable record of surprise checks
conducted is kept at the station.
30. Test check some items of work done by the Inspector of Station Accounts, by taking his
latest report received in the Accounts Office.
31. Comparison of concession orders issued by authorised colleges/schools(Para 1177 OM).
407
Annexure - VII(iii)(Para 1616)
List of items to be checked(In addition to items in Annexure VII(i))
PARCELS TRAFFIC
1. Count of Cash of Parcels, luggage etc. on hand at the time of inspection.
2. Closing of all books in use by the date of inspection and tallying the Cash on hand with
books.
3. Marking of outstanding items in the Delivery Book.
4. Taking inventory of all parcels on hand and connecting them with the outstandings in the
Delivery Book and reporting cases of Parcels lying on hand unconnected and unclaimed.
5. Examine:
1. Register of misdeclaration of parcels.
2. Register of reweighments
3. Register of unclaimed and excess articles lying at the station.
6. Check of "Paid" outward way bills in detail in Parcels Cash Book and DTCBs for the
period from the last Balance Sheet submitted by the station upto the time of inspection.
In addition, test check some items for the last closed period.
7. A few "Paid" way bills should be checked to see that they have been correctly prepared,
risk notes held and weights as per forwarding notes have been correctly entered on the
Parcel Way Bills.
8. Special credits such as "Paid-on" overcharge sheets and credit advices etc. should be
verified.
9. Check Delivery Book with Cash Book all items during the period of inspection. In
addition check Delivery Book with Cash Book for not less than 4 days during the period
for which Balance Sheets have been submitted by the station.
10. Check some collected receipts with Delivery Book and Cash Book in order to verify the
amount, dates of delivery and remittances.
11. Test Balance Sheet: Prepare Error-sheet account from the last Balance Sheet submitted by
the station upto the time of inspection.
12. Examine the Cash Book generally for erasures, alterations etc. Totals to be checked at
random for 3 days.
13. Cash Remittance Notes:
i) Check remittances from the last Balance Sheet submitted by the station upto
the time of inspection.
ii) Check remittances for any one previous complete month other than the "closed
month" with reference to Balance Sheet.
iii) See that acknowledgements from the Cashier have been received and pasted to
counter foils
iv) Delay in remittance of cash should be verified with reference to remittance
into Bank/Guard's signature book.
408
14. Cash Book: Compare totals of Parcels Cash Book with DTCB for the period from the last
Balance Sheet submitted by the station.
15. General Money Receipts: The amounts for which receipts have been issued should be
compared with the amounts accounted for in the Cash Book to ensure proper accountal of
the amounts for which the receipts have been issued for the selected periods.
16. Advices of Accounts - see if these are promptly received from the Accounts Office and
that error sheets issued are taken to account by the station.
17. Check of closed month's Balance Sheet with reference to initial records at the station.
18. Loading Books: Check not less than 20 items with Way Bills to see that packages have
been promptly and correctly despatched.
19. Unloading Book: Check not less than 20 items with the Delivery Book to see that dates of
unloading have been correctly shown in the Delivery Book.
20. Wharfage: Check accuracy and accountal of wharfage collected from the last Balance
Sheet submitted by the station upto the time of inspection and also for any 3 previous
months with Cash Book/Wharfage Return.
21. Test weighment of 5 outward and 5 inward parcels on hand; excess weight noticed, if
any, should be got recorded in the Delivery Book. In the case of regular
underweighments by particular stations, the action taken should be reviewed.
22. Check of outstanding items:
(a) Admitted Debits outstandings
(b) Not Admitted Debits outstanding
(c) Any other outstandings
See that outstandings are genuine and prompt action has been taken for their clearance.
Report cases outstanding over six months for necessary action by the Administration.
23. Scrutiny of claims settled by Station Masters with reference to initial records of the
station and also see whether Railway Receipts are stamped and endorsed with reference
to Pay Orders issued and connected entries in the Delivery Book are referenced off.
Regarding claims settled at Headquarters it should be seen that suitable entries are made
in the Delivery Book to avoid duplicate claims.
24. Scrutiny of Damage and Deficiency Report, Partial Delivery Certificate, Shortage
Certificates: To see that there is no delay in assessing the damages of consignments so
that excess payment of compensation due to further deterioration is avoided.
25. Auction Sale Account.
26. Handling Bills: The weight lifted for which payment has been made should be completely
checked with reference to initial records. The payments made should be checked with
reference to the terms of agreement.
27. Review of engagement of Parcel Porters with reference to yardstick prescribed: The
justification for the strength of Parcel Porters engaged should be examined.
28. Test check of machine numbers of "Paid" Parcels Way Books received from other
stations and accounted for in the local Delivery Books with the list of books supplied to
those stations.
29. Check of machine numbered books in use and in stock with reference to Parcels Traffic.
409
30. Routing of Parcels by a dearer route: When alternate routes are available, whether freight
charges are being collected by the carried route.
31. Check of Parcel Van Traffic:
(1) Placement and release of parcel vans and proper utilisation of Parcel Vans.
(2) Whether any seasonal traffic is lost due to non-availability of parcel van or non-
supply of wagons.
32. Check of Perishable Traffic, if any and Perishable Deposits Register.
33. See that weighing machines give correct weights and that scales are tested by the
inspecting officials periodically.
34. Check of Gate Pass Books and Gate Pass Register: To see that the packages delivered are
correctly removed on the date of delivery. The date of removal as shown on the gate pass
should be verified with the date of removal as shown in the Delivery Book.
35. In the case of out-agencies and City/Town Booking Offices -Parcels received at serving
station should be checked with reference to entries in the Handing Over and Taking Over
Registers to see that wharfage charges have been recovered in the case of delayed
removal from outagencies or City/Town Booking Offices are not detailed at the serving
station. A test check of loading and unloading book for atleast 20 entries be made.
410
Annexure VII(iv) (Para 1616)
List of items to be checked(in addition to items in Annexure VII(i))
GOODS TRAFFIC
1. Counting of Cash on hand at the time of opening of the inspection. The cash on hand
should be checked with reference to deliveries effected as per delivery books, outward
goods booked as per the paid Invoice Books and Cash Books for other miscellaneous
earnings.
2. An inventory of all goods on hand should be prepared including wagons awaiting to be
loaded/unloaded. The consignments should be linked with Delivery Books, Gate Pass,
Unloading Tally Books and Vehicle Registers. The outward consignments should be
tallied with forwarding notes/invoices. The outstanding items should be marked in the
delivery book. Report cases of goods lying on hand unconnected and unclaimed.
3. Comparison of "Outward-paid" amounts from record portions of invoices into cash
books, for the period from the last Balance Sheet submitted by the station upto the time of
inspection and any selected four days in the previous periods.
4. Check of totals of goods cash books for period as mentioned above.
5. Check of Railway Receipts for 4 dates into Delivery Book/Cash Book.
6. Check of D.B. totals for periods as mentioned in item 3 above.
7. Check of Wagon Demand Registration Fee, Receipts and Refunds and Review of Priority
Register.
The correctness towards Wagon Demand Registration fees for the period mentioned in item 3
above should be traced in Cash Book. The amounts refunded during the said period should
be checked with reference to the Cash Book and with reference to the allotment of and
loading of wagons as noted in the priority register and outward invoivces. The allotment of
wagons should be checked with reference to the allotment orders received from the
commercial authorities. To see that the time of placement of empty wagons for loading and
the time of release have been entered in the priority register.
8. (a) Wharfage/Demurrage: Check accuracy and accountal of Wharfage/Demurrage
collected for the period from the last Balance Sheet submitted by the station upto the time
of inspection and also for any two previous months with Cash Book/Wharfage-
Demurrage Return.
(b) Crane/Haulage charges: The charges accounted for should be checked and traced in
the Cash Book for the period mentioned above.
9. Scrutiny of siding agreement: Whether the agreement is properly executed; whether any
deviations from the original agreement are covered by executing rider agreements.
(a) Scrutiny of siding register with reference to which exchange book showing
movements of wagons from and into sidings; whether the physical delivery of wagons
and book delivery (i.e. collection of freight charges etc.) are effected simultaneously; if
not reasons for delay in effecting book delivery should be scrutinised; whether siding
statements are prepared for all sidings correctly; the siding charges collected should be
verified for accuracy and traced into the Cash Book for the period mentioned above.
10. Auction sale statements: The amounts realised in auction sales should be traced into the
Cash Book.
411
11. Register of lease of plots: To see whether demarcation of plots has been properly made
and the amounts towards license fees are promptly collected and accounted for. Arrears
in payment of license fees etc. and other irregularities noticed should be reported to the
Divisional Audit Officers concerned for taking up the matter with the Divisional
Authorities.
12. Cash Remittance Notes:
i) Check remittances from the last Balance Sheet submitted by the station upto
the time of inspection.
ii) Check remittances for any one previous complete month other than the "closed
month" with reference to Balance Sheet.
iii) See that acknowledgements from the Cashier have been received and pasted to
counter foils.
iv) Delay in remittance of cash should be verified with reference to remittance
into Bank/Guard's signature book.
13. Check of outstandings of closed months and comments on items outstanding over six
months.
14. Prepare test Balance Sheet for goods inward transactions and error sheets from the last
Balance Sheet submitted by the station upto the time of inspection.
15. Scrutiny of money receipts with reference to amounts accounted for in Cash Book for the
selected periods.
16. See that advices of account are regularly reported and that error sheets issued have been
taken to account by the station.
17. Check of closed month's Balance Sheet with reference to the initial records at the station.
18. Check of old outstandings, "to-pay freight", debits admitted and not admitted with a view
to see they are genuine and that action has been taken to clear them.
19. Invoice books and consignments notes: To see that actual weights as shown on
consignments notes are reflected on invoices; To examine atleast some percentage to see
that invoices are correctly prepared, promptly issued (i.e. before despatch of the
consignments), references, risk notes held etc. are given. To see also that there is no
violation of restrictions imposed from time to time.
20. Check of loading books and guard's signature books for transhipped packages with record
invoices.
21. Check of loading book with wagon exchange book and guard's signature book for
consignments/wagons despatched.
22. Check of unloading and wagon exchange books with delivery books to see that dates of
unloading are correctly recorded in the Delivery Book.
23. Check of Gate Pass Book and gate pass register: To see that packages delivered are
correctly removed on the date of delivery. The date of removal as shown on the gate pass
should be verified with the date of removal as shown in the Delivery Book.
24. Scrutiny of following registers:
a) Index Register
b) Register of weekly inventory
c) Register of sender's weight accepted
412
d) Register of weighments
e) Register of excess and unclaimed goods
f) Register of sweepings
g) Register of misdeclared consignment
h) Register of short supply of wagons against standard rake indent.
i) Register of credit notes/cheques/demand drafts accepted.
25. Scrutiny of quick-turn-round register with a view to see that wagons are not detained in
Goods Shed and in the yard unnecessarily. It should also be seen that the wagons are not
unduly detained at the station yard from the time of arrival to the time of despatch with
reference to vehicle registers.
26. Scrutiny of weighing machines and weighbridges to see that they give correct weights
and that scales are tested by the inspectors periodically. To see whether the weighbridges
are fully utilised.
27. Check of machine numbered books(money value books) with a view to see that they are
entered in the register as per indents complied with, they are signed for when issued,
dates of completed books are marked and that the books to be on hand are correct. Also
test check machine numbers of paid invoice books received from other stations and
accounted for in the local Delivery Books with the list of books supplied to those stations.
28. Scrutiny of claims settled by Station Masters to be reviewed with the initial records there
and to see whether railway receipts are stamped and endorsed with reference to pay
orders issued and connected entries in the Delivery Book are referenced off as to
payments made for shortage, damage or loss of entire consignments. Regarding claims
settled at Headquarters it should be seen that suitable entries are made in the delivery
book to avoid duplicate claims.
29. Handling Bills: The weight lifted for which payment has been made should be completely
checked with reference to initial records. The payments made should be checked with
reference to the terms of agreement.
30. Review of engagement of Goods Porters with reference to yardstick prescribed: The
justification for the strength of Goods Porters engaged should be examined.
31. Sheets and ropes register.
32. Scrutiny of traffic on live stock, over dimensional consignments etc.
33. Scrutiny of Railway Material Consignments Traffic.
34. See that machine-prepared abstracts have been taken into account promptly and correctly.
35. Freight Forwarding Scheme.
36. Working of Container System.
37. Recovery of Quick Transit Service charges and refunds, if any, to be verified.
38. Routing of Traffic with reference to Rationalisation orders.
39. Damages and Deficiencies: To see whether the packing conditions are fulfilled. Scrutiny
of Damage and Deficiency Reports, Partial Delivery Certificate, Shortage Certificates.
To see that there is no delay in assessing the damages of consignments so that the excess
payment of compensation due to further deterioration is avoided.
40. Trend of Traffic: To see whether the traffic offered is related to the raw material carried
to the station.
413
Annexure - VIII - (Para 1611 and 1616)
Annexure XXVI
(Reference Para No. 9.3)
Top Sheet for Traffic Audit Inspection Party
SECTION A
(To be filled by S.O. / A.AU.O.)
1. a) Name of Station inspected and name of SM/SS
etc.
_________________
b) Category of Station Minor Major Big Very Big
c) Account of Traffic checked Goods Coaching
1. Station
2. Sidings
3. Concor
Depot
1. Parcel &
Luggage
2. Passenger
3. Computerised
PRS
d)
(i)
Nature of Main Traffic dealt with Outward Inward
Both
d)
(ii)
Main item 1.
Cement
2. Oil 3 Fertilizers etc
e) Earning for Three years
1. In Rupees

2. In Months & Year of last inspection by Audit
3. Composition of Audit Inspection Party with
Names

4. Dates of present Inspection from _________ to ________
5. Contributed by
Ar. / Sr.Ar. S.O. / A.Au.O.I S.O. / A.Au.O. II B.O.
i) No. of rough objection notes issued
ii) Date of discussion of objection
notes with GO/Supervisory staff

iii) Memos settled during discussion
iv) No. of paras issued through Pt. II-
I/R

v) No. of paras proposed issued
through Pt.i/IR/Spl.Letter

6. Cases of embezzlement, fraud,
misappropriation etc, if any detected
by Audit (whatever applicable be
ticked)
Yes included in Para ___
of Part. II/I-IR/Spl.Letter
No case noticed
7. Certificates (Applicable be ticket)
i) Realisation, withdrawal, custody,
remittance of cash to cash office,
Bank & accounting thereof checked
Irregularity pointed out in
Para ___ of Pt. II/I-
IR/Spl.Letter
ii) The prescribed checks as per were
exercised properly

8. Station O/s as on _________ (last
day of previous month)

a) Freight __________ Rs. __________________ (Period from __________________)
b) Admitted debit _________ Rs. _____________ (Period from __________________)
c) Disputed debit _________Rs. ______________ (Period from __________________)
d) Demurrage __________ Rs. ________________ (Period from _________________)
e) Wharfage ____________ Rs. _______________ (Period from _________________)
9. List of work allocated to Members of
Inspection Party is attached

414
10. a) Date of submission of IR by Sections to
BO
b) Date of Submission of IR to GO
Reasons for delay in submission of IR to BO /
GO

11. Suggestions of Inspecting Officer
Certified that I have exercised the audit checks prescribed in the relevant sections and paras of Railway Audit
Manual while auditing item of activities entrusted to me and that no item of check prescribed or to be carried out
under special orders issued from time to time has been overlooked.
Sr. Audit Officer / Audit Officer
Deputy Director
415
Section B
1. Date of receipt of Report in Co-Ord (HQ) / Report Section.
2. Date of submission by the Section to the BO.
3. Date of submission to Director / Deputy Director.
The draft audit Inspection Report with the half margin inspection memos, replies and
connected records are submitted for approval after scrutiny.
Deputy Director / Director
Section C
(To be filled by Co-Ord (HQ) after approval of Inspection Report)
1. Date of approval by Principal Directory of Audit.
2. Date of dispatch to Auditee unit.
3. Action taken on points / cases sent by Headquarters for investigation during
Inspection.
4. Paras marked as PDP _______
Section D
(To be filled by the Co-Ord (HQ) after approval of the report by Principal Director of Audit)
Sl. No. Subject Contributed by (Name
and Designation)
Financial effect
1.
2.
3.
4.

416
Annexure XXVII
Top Sheet for Local Inspection Party (Open-Line) and Workshop and Stores Inspection
Section A
1. Name of Office
2. Month and Year of last Inspection
3. Composition of Audit Inspection party with names

4. Dates of present inspection
5. Dates of Branch Officers supervision
6. Nos. of Preliminary Objections (POs) issued
7. Date of discussion with executives
8. Nos. of POs settled during discussion
9. Nos. of paras proposed through: Ar. /
Sr.Ar.
SO /
AAuO
Branch
Officer
a) Special Letters
b) Part. I Inspection Reports
c) Part. II Inspection Reports
10. Date of submission of draft inspection report to Group
Officer

11. Reasons for delay in submission of draft inspection
report to Group Officer

12. Duty list (attached) indicating allocation of items of
work amongst the members of inspection party

Certified that I have exercised the audit checks prescribed in the relevant sections and
paras of Railway Audit Manual while auditing the items of activities entrusted to me and that
no item of check prescribed or to be carried out under special orders issued from time to time
has been overlooked.
Ar. / Sr.Ar.
S.O. / A.Au.O.
Section B
1. Date of receipt of Report by Director / Deputy Director.
2. Date of submission to Principal Director of Audit
The draft Audit Inspection Report with the half margin inspection memos, replies and
Deputy Director / Director
Principal Director of Audit
417
Section C
(To be filled after approval of Inspection Report)
1. Date of approval by Principal Director of Audit
2. Date of receipt by the Branch Officer
3. Date of dispatch to Auditee Unit
4. Paras marked as PDP ______________ Special Letter _______
Section D
(To be filled by Branch Officer after approval of the report by Principal Director of Audit)
Contributions
Sl.
No.
Name and
Designation
Part. I / Special Letter Part. II
Number of
Paras
Financial
effect
Number of
Paras
Financial
effect
1.
2.
3.
4.
5.
6.
7.
8.
418
Annexure XXVIII
Top Sheet for Construction Audit Inspection Party
Railway Audit Office _______________
Name of the Unit / Organisation inspected ___________
Section A
(To be filled by the Local Audit Party)
1. Period of Inspection : From _______________ To ______________
(i) Actual number of party days excluding holidays ___________
(ii) Last Inspected Spell ________________
(iii) Period of accounts covered during last inspection ____________
(iv) Period of accounts covered during the current inspection _______
(v) Whether extension was applied for Yes / No
(vi) If yes, the number of party days for which
a. Extension sought ______
b. Extension granted ______
Name of Party Members
(i) Name of Inspection Officer 1. Sri ____________, Sr.A.O. /A.O.
(ii) Asstt. Audit officer / Section Officer 2. Sri ____________, AAO/SO
3. Sri ____________, AAO/SO
(iii) Sr. Auditor / Auditor 1. Sri ____________, Sr.Ar. / Ar.
2. Sri ____________, Sr.Ar. / Ar.
2. Whether the Report was discussed with the Head of the auditee unit
(i) If yes, the date of discussion Yes / No
(ii) If no, the reasons may be given
3. Audit certificates regarding work done as per duty list by the respective party
members are enclosed.
4. Date on which sent for typing
5. Date of return from typing
6. Date of submission to Director / Dy. Director
419
Section B
1. Date of receipt of Report by Director / Dy. Director.
2. Date of submission to Principal Director of Audit
The draft audit Inspection Report with the half margin inspection memos, replies and
Dy. Director / Director
Section C
1. Date of approval by Principal Director of Audit
2. Date of receipt by the Branch Officer
3. Date of desptach to Auditee unit
4. Paras marked as PDP ________ Special Letter __________
Section D
Contributions
Sl.
No.
Name and
Designation
Number of
Paras
Financial
effect
Number of
Paras
Financial
effect
1.
2.
3.
4.
5.
6.
7.
8.

Sr. A.O. / A.O.
420
Certificate I
(For Sr. Audit Officer / Audit Officer)
1. Scrutiny of works contracts costing above Rs. 1 crore completed since last Audit
(Quantum of check 100%)
(a) Number of contracts completed since last Audit ________
(b) Number of contracts checked by Sr.Au.O. / Au.O. _______
(c) Number of contracts completed but not checked _______ with reasons.
(d) Results included in Inspection Report / Special Letters with money value.
Inspection Report
Part. I Part. II Special Letters
Para No. Money Value Para No. Money Value Money Value
2. Scrutiny of ongoing works contracts costing over Rs. 1 crore.
(a) Number of contracts in progress at the time of last inspection _______.
(b) New contracts awarded since the last Inspection _______.
(c) Total contracts in progress ________.
(d) Number of contracts scrutinized during inspection _______.
(e) Number of contracts not examined with reasons.
(f) Audit result included in the Inspection Report / Special Letters with money
value
Inspection Report
3. Scrutiny of final bills in respect of works costing over Rs. 1 crore (Agreement value)
for selected month.
(a) Total No. of final bills required to be audited for selected month.
(b) Total No. of final bills checked during inspection ___________.
(c) Total No. of final bills not checked with reasons ____________.
(d) Audit result included in Draft Inspection Report, Special letters with Money
Value.
Inspection Report
4. Check of payments made to Revenue authorities of State Governments for acquisition
of land or other assets and their accountal (Quantum of check; 100 per cent).
Total No. of cases and payments released _________________.
Total No. of cases reviewed with monetary value _____________________.
Audit results included in Draft Inspection Reports, Special letters with para No. and
amount.
421
Inspection Report
5. Other important items of work.
Brief description of item
Para No. of I/R Money Value Remarks, if any
Note:
1. After covering the cases due for current audit, the project review and contract audit
can include cases not audited during immediately preceding spell of audit.
2. The checks which are not applicable to the unit inspected may be indicated as N.A.
pars of Railway Audit Manual while auditing items of activities entrusted to me and that no
item of check prescribed or to be carried out under special orders issued from time to time
Certificate II
(For Asst. Audit Officer / Section Officer)
1. Scrutiny of works contracts costing upto Rs. 1 crore completed since last
Audit (Quantum of check prescribed; As per SMI).
a. Number of contracts completed since last Audit _________
b. Number of contracts checked by Sr. Au.O. / Au.O. _____________
c. Number of contracts completed but not checked ________ with reasons
thereof.
d. Results included in Inspection Report / Special letters with money value.
Inspection Report
2. Scrutiny of ongoing works contracts costing upto Rs. 1 crore
a. Number of contracts in progress at the time of last inspection __________
b. New contracts awarded since the last Inspection ___________
c. Total contracts in progress _________
d. Number of contracts scrutinized during inspection __________
e. Number of contracts not examined with reasons.
f. Audit result included in the Inspection Report / Special letters with money
value.
Inspection Report
422
3. Scrutiny of final bills in respect of works costing upto Rs. One crore
(Agreement value) for selected month.
a. Total No. of final bills passed during the period covered under inspection
___________
b. Total No. of final bills checked during inspection ____________.
c. Total No. of final bills not checked with reasons ___________.
d. Audit result included in Draft Inspection Report, Special letters with
Money Value.
Inspection Report
4. Review of court cases / Arbitration cases (above Rs. 25,000/-) decided
against Railways : Quantum of Check 100%
Total No. of cases:
Total No. of cases reviewed with monetary value ___________
No. of cases not examined with reasons
Audit result included in Draft Inspection Report, Special letters with Money
Value
Inspection Report
5. Other important items of work
Note:
1. After covering the cases due for current audit, the project review and contract audit
can include cases not audited during immediately preceding spell of audit.
2. The checks which are not applicable to the unit inspected may be indicated as N.A.
Asst. Audit Officer / Section Officer
423
Certificate III
(For Sr. Auditor / Auditor I)
1. Scrutiny of work orders for selected month
a. Total work orders in progress _____________
b. Number of work orders scrutinized during inspection _______
c. Number of work orders not examined, with reasons.
d. Audit result included in the Inspection Report / Special letters with money
value.
Inspection Report
2. Scrutiny of on account bills. (Quantum of check prescribed; selected month).
a. Total N. of on account bills passed during the selected month ________
b. Total No. of on account bills checked __________
c. Total No. of on account bills not checked, with reasons.
d. Audit result included in Draft Inspection Report, Special letters with
Money Value
Inspection Report
3. Check of imprest account (fuel imprest and general imprest) (Quantum of check;
100 percent for selected month).
Total No. of imprests __________
Total No. of imprests reviewed with monetary value ___________
Total No. of imprests not reviewed with monetary value, with reasons ______
Audit results included in Draft Inspection Reports, Special letters with para
No. and amount.
4. Other important items of work
Audit results included in Draft Inspection Reports, Special letters with para
No. and amount.
Note:
1. After covering the cases due for current audit, the project review and contract
audit can include cases not audited during immediately preceding spell of audit.
2. The checks which are not applicable to the unit inspected may be indicated as
N.A.
Sr. Auditor / Auditor-I
424
Certificate IV
(For Sr. Auditor / Auditor II)
I. Complete check of Service Books and Leave Accounts of all officials retiring
before next audit
a. Quantum of checks 100 per cent
b. Total No. of employees retiring during next year
c. Total No. of SB and L/A checked
d. Total No. of SB and L/A not checked with reasons
e. Irregularities noticed in SB and L/A (No. of cases)
Part. I Part. II
Para No. Monetary Value Para No. Monetary Value
2. Productivity Linked Bonus 5%
(a) Quantum of checks
(b) Total No. of employees
(c) Total No. of cases checked
(d) Total No. of cases not checked with reasons
(e) Excess payments detected
Part. I Part. II
3. Recovery of Rent, Electricity charges, etc. from officials having Railway
accommodation
(a) Quantum of checks 5%
(b) Total No. of employees having Railway accommodation
Part. I Part. II
4. Other important items of work such as fixation / re-fixation of pay and TA
bills etc.
Irregularities noticed
Part. I Part. II
Note:
1. After covering the cases due for current audit, other cases not audited during
previous year may be checked.
2. The checks, which are not applicable to the unit inspected, may be indicated as
N.A.
Sr. Auditor / Auditor-II
425
Annexure XXIX
Top Sheet for Cash office Inspection Party
Railway Audit Office _____________
Section A
(To be filled by the Local Audit Party)
I. Period of Inspection: From _____________ To ___________
(i) Actual number of party days excluding holidays _________
(ii) Last Inspected Spell ___________
(iii) Period of accounts covered during last inspection _____________
(iv) Period of account6s covered during the current inspection __________
(v) Whether extension was applied for Yes / No
(vi) If yes, the number of party days for which
a. Extension sought _________
b. Extension granted ___________
Name of Party Members
(i) Name of Inspecting Officer 1. Sri _____________, Sr.A.O. / A.O.
(ii) Asst. Audit Officer / Section Officer 1. Sri _____________, A.A.O. / S.O.
2. Sri _____________, A.A.O. / S.O.
(iii) Sr. Auditor / Auditor 1. Sri _____________, Sr.Ar. / Ar.
2. Sri _____________, Sr.Ar. / Ar.
2. Whether the Report was discussed with the head of the auditee unit
(i) If yes, the date of discussion Yes / No
(ii) If no, the reasons may be given
3. Audit certificates regarding work done as per duty list by the respective party
members are enclosed
4. Date on which sent for typing.
5. Date of return from typing.
6. Date of submission to Director / Dy. Director.

426
Section B
1. Date of receipt of Report by Director / Dy. Director.
2. Date of submission to Principal Director of Audit.
The Draft Audit Inspection Report with the half margin inspection memos, replies and
Dy. Director / Director

Section C

1. Date of approval by Principal Director of Audit.
2. Date of receipt by the Branch Officer.
3. Date of dispatch to Auditee unit.
4. Paras marked as PDP ________________ Special Letter _____________________

Section D
Contributions
Sl.
No.
Name and
Designation
Number of
Paras
Financial
effect
Number of
Paras
Financial
effect
1.
2.
3.
4.
5.
6.
7.
8.

Sr. A.O. / A.O.

Certificate I
(For Sr. Audit Officer / Audit Officer)
1. Review of working of cash and pay department.
2. Results of Audit included in Draft Inspection Report / Special letters with money value.
Inspection Report
427
2. Audit Scrutiny of records of Indemnity Bonds.
(a) Quantum of check: 100 percent in selected month
(c) Number of Indemnity Bonds executed since last audit ____________ and
during _________________ month.
(d) Indemnity Bonds examined.
(e) Indemnity Bonds not examined with reasons.
(f) Results of Audit included in Draft Inspection Report / Special letters with
money value

Inspection Report
3. Scrutiny of cases of loss / manipulation of cash (100 percent)
a. Total No. of cases of loss / manipulation of cash since last audit.
b. Total No. of cases checked.
c. Total No. of cases not checked with reasons.
d. Results of Audit included in Draft Inspection Report, Special letters with
money value.

Inspection Report
Other important items.
Results of Audit included in Draft Inspection Report, Special letters with
money value.

Inspection Report

Note:
1. After covering the cases due for current audit, cases not audited during
immediately preceding spell of audit, be examined.
N.A.


428
Certificate II
(For Asst. Audit Officer / Section Officer)
1. Cash book and challans maintained by Chief Cashier, DCP and Pay Clerks.
a. Quantum of check (100 percent for ____________ month).
b. Number of cash books and challans.
c. Number of cash book and challans checked.
d. Number of cash books and challans not checked with reasons.
e. Results included in the Draft Inspection Report / Special letters with money
value.
Inspection Report
2. Verification of cash.
a. Quantum of check: 100 per cent
b. Number of Cashiers / Pay Clerks.
c. Number of Cashiers / Pay Clerks whose cash was verified.
d. Number of Cashiers / Pay Clerks whose cash was not verified with reasons.
e. Audit result included in the Draft Inspection Report / Special letters with
money value.
Inspection Report
3. Review of cases of cheques dishonoured by banks.
a. Quantum of check.
b. Total No. of cheques dishonoured since last audit.
c. Total No. of cases scrutinized.
d. Total No. of cases not scrutinized with reasons.
e. Audit result included in Draft Inspection Report, Special letters with Money
Value.
Inspection Report
Note:
1. After covering the cases due for current audit, cases not audited during
immediately preceding spell of audit, be scrutinised.
N.A.
429

Asst. Audit Officer / Section Officer
Certificate III
(For Sr. Auditor / Auditor)
1. Complete check of Service Books and Leave Accounts of all officials
retiring before next audit
a. Quantum of checks 100 per cent
b. Total No of SB and L/A checked
c. Total No. of SB and L/A not checked with reasons.
Irregularities noticed in SB and L/A (No. of cases)
2. Productivity Linked Bonus 5%
(a) Quantum of checks
(b) Total No. of employees
Part. I Part. II
3. Recovery of Rent, Electricity charges, etc. from officials having Railway
accommodation
(a) Quantum of checks 5%
(b) Total No. of employees having Railway accommodation
Part. I Part. II
Other important items of work
Irregularities noticed
Part. I Part. II
430
Note:
The checks, which are not applicable to the unit inspected, may be indicated as N.A.

Sr. Auditor / Auditor
Ch.XVII - Page 1 of 17
416
CHAPTER - XVII
ELECTRONIC DATA PROCESSING AUDIT(EDPA) SECTION
1701. Introduction: EDP audit is part of comprehensive audit of an organisation. EDP audit
principles are the same as those which govern all other spheres of audit. The difference is
only in application of these principles. While computerisation is often viewed in terms of
changes in way things are done, an automated system does not necessarily require any new
ideas. An automated system simply applies the processing abilities of a computer to the task.
By using the computer, the limitations of human processing abilities are eliminated with
proper system and design, the tasks can be performed in much the same manner but more
efficiently by using the computer as a processing tool. Computers do not alter the basic
concepts or objectives of the system control. However, the techniques and points of control
must be adopted to the changing conditions and responsibilities of an EDP environment.
1702. Objectives: EDP Audit includes all activities undertaken to evaluate EDP system at
any stage of its life cycle; from acquisition or development through operation and
maintenance and ultimately replacement. The basic and broad objectives of EDP Audit are to
see:
1. System Effectiveness: Does the system fulfil the aims for which it was acquired or
developed? Does it provide the information needed by users in a convenient format and
timely fashion?
2. System Economy and Efficiency: Is the use of system resources(hardware, software,
people, money) optimised?
3. Data Integrity : Are the internal controls adequate to ensure that errors are not
introduced when entering, communicating, processing, storing or reporting data?
4. System Security: Are the internal controls adequate to ensure that data can not be
altered maliciously or assessed by unauthorised personnel? Are the system resources
adequately protected against theft, waste, fraud and natural disasters?
5. System regularity: Are system activities (e.g. acquisition, development, operation,
maintenance), compliance with applicable laws, regulations, policies, directives and
guidelines?
1703. Functions and duties of EDP Audit Section :
1. To impart basic training in computer culture to staff and officers by holding seminars at
various offices located at outstation and Hyderabad/Secunderabad.
2. To formulate effective audit procedures relating to computerised accounting
systems/records.
3. To conduct inspections/audit of the computer system/records covering the following main
headings.
i) Planning and acquisition of EDP facilities.
417
ii) Review of installation controls
iii) Review of systems under development.
iv) Review of production systems
v) Review of data systems
vi) Review of micro computer systems/office automation.
The extent and scope of EDP audit under the above headings (i) to (vi)
depends upon the state of development of auditee computer organisation and the technical
expertise of the audit personnel.
1704. Documentation: The importance of good standards of documentation insisted upon in
audit holds good for EDP audit too. Maintenance of:
- an installation file containing details of hardware, software, staffing, basic procedures
and controls,
- an application file giving an outline of the system, its important control features,
description of data stored in data files etc.; and
- an audit file containing computer listing of programmes, input, output, data
description and the objectives of the programme,
can prove to be great help in the course of EDP audit form verification and
review.
1705(i). Audit Review of Planning and Acquisition of EDP Facilities and use of
Resources :
- The purpose of audit of "EDP facilities planning" is to identify the impact of
technological and environmental changes and to ensure that the most appropriate EDP
services are provided. The questions asked are
- Is there a strategic plan for provision of EDP services and does the plan take into
account organisational, environmental and technological changes likely to occur in a
three to five years time frame?
- In auditing EDP facilities planning, we have to see whether services are provided in
accordance with a published EDP policy. The purpose of audit in this case is to
ascertain whether there is
- lack of central coordination of EDP
- a high degree of EDP centralisation in a decentralised organisation
- uncontrolled proliferation of computers
- lack of user awareness of service availability
- any complaint from users regarding service offered
(ii) Audit of Acquisition of EDP Facilities: The overall objectives in an audit review of
acquisition of EDP facilities is to see the adequacy of administrative procedures and controls
used by a department when considering and deciding upon the acquisition of computer
facilities.
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Acquisition of computer facilities may include;
- Acquisition of hardware
- introduction of a completely new installation
- enhancement of central processor
- enhancement of peripherals
- addition/replacement of a specific equipment,
- introduction of several small processors
- Acquisition of software
- general software associated with changes in hardware(a new operating system)
- specific purpose software, and
- 'off the shelf' application software
The first step in audit should be to identify the organisation's computer policy.
The degree of complexity of hardware and software installed and cost and time scale for the
installation will determine the precise procedure to be followed in each installation.
The auditor should direct his attention to the following areas:
1. J ustification of hardware and software
2. Feasibility study/project report containing proposals, costs and benefits
3. Equipment selection
4. Installation of equipment and adequacy of testing
5. Post implementation review of costs and benefits
The points to be looked into in each of these areas are given below:
1. J ustification: Responsibility for examining and establishing the need for computer facilities
lies with the Department (accountability for investment).
- Instead of saying "we have a computer, what can be put on it?", the decision to
acquire the EDP facility should be because "we see inefficiency; can the computer
save us time or money?"
- Absence of a thorough study of the perceived shortfall in computing facilities or
staff is indicative of a foreseen conclusion that there was no alternative to
acquiring more computer facilities.
- Failure to upgrade the equipment at the right time may involve risk of dependence
on manufacturers for spare parts.
- Delays in processing, one of the reasons for acquiring a new facility, may be
caused by overloading of the existing computer, computer malfunctioning,
inefficient programme design, staff shortages, poor staff performances in
particular areas.
- A discussion with computer staff may reveal unexpected results which point to a
solution other than upgrading computer facilities.
2. Feasibility Studies: The feasibility study report should cover the following points:
- Clear statement of objectives
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- Existing arrangements
- Alternative solutions
- Proposed solution
3. Equipment Selection: The following points should be borne in mind:
- specification of requirements for acquisition, enhancement or replacement of
computing facilities are stated concisely and precisely as they form the potential;
- both technical and commercial aspects of the proposal are evaluated according to
standard contracting procedures;
- procurement action is taken after ensuring that the suppliers offers meet the
requirements of the specifications through;
bench marking tests with sample representative job mix for measuring
throughput of the system;
technology options available at the time of procurement;
obtaining first-hand experience of other users having similar systems installed
in their organisations;
future development plans of the potential suppliers in terms of expandability,
upgradability, communicability, trade in options;
financial appraisals are on the same lines as those of any other form of capital
purchase and should take into account;
the extent of built-in obsolescence and useful life of the asset, and
incidental costs which could eventually be of sufficient magnitude, besides
hardware and software costs.
1706. Installation of equipment and Adequacy of Testing: The following points should be
borne in mind while monitoring:
- plan/schedule for installation and for monitoring progress(whether they are
available);
- schedule for conversion of software(extent of efforts required) and how it will
affect the commissioning of the installation;
- payments to suppliers are authorised after testing and user acceptance of the
system;
- maintenance and support services include basic training, production
documentation, option for upgrading.
1707. Post Implementation Review: The detailed process of evaluating proposals specifying
the requirements, organisation and installation should be followed by a post implementation
420
review by the department to satisfy itself that the cost and benefits expected have
materialised. The purpose of the audit review in this case is to see whether
- the estimated savings projected in the feasibility study compare favourably with
the actual results;
- there is evidence of major cost variations from budget estimates due to
inadequate planning
unusual growth
changing technology
unforeseen conversion problems
1708. The use of Computering Resources: The purpose of audit review in this case is to
appraise and report upon waste, extravagance, inefficient Administration or poor value for
money. While the responsibility for effective and efficient use of all resources rests with the
auditee organisation, it is the auditor's job to satisfy himself that the procedures laid down are
adequate to make proper use of hardware, software staff and data; maximising the benefits
and minimising the costs; and satisfying users by providing effective and efficient
applications. Failure to complete the projects in estimated time scale, poor turn around of
jobs, inadequately defined standards, insufficient monitoring, too optimistic forecast, too little
users' participation and excess costs of new system development are some of the areas
requiring auditor's attention.
The following aspects should be reviewed in consultation with the computer
management:
- often smaller applications are computerised without a cost justification exercise
mainly because there is surplus computing power;
- increasing the productivity of the existing computer facilities by making better use
of staff resources through well-defined functional distribution should be
considered as an alternative to increased staffing level;
- computing resource of an organisation is not just hardware installed but the total
contribution of software, hardware and staff. The performance can, therefore, be
increased more effectively by improving contribution from these factors rather
than acquiring more equipment.
1709. Audit review of EDP Installation controls:
1. Audit of EDP installation controls is closely bound to the audit of computer applications.
However, in a large installation, it is usually advantageous to break up the audit into a
number of smaller projects each dealing with some elements or with certain functions
within the computer department. That is to say, the audit project could be broken up into
functional units such as a review of data control facilities, organisational controls,
environment controls.
2. The object of review of installation controls is to see that the regulations providing for the
duties and responsibilities of various computer staff and other control staff and standards
in regard to operation functions, access to computer and computer files, terminal activity
421
etc. are such as to ensure efficient day-to-day running of the computer installation. The
areas to be covered by audit are:
- Functions and responsibilities of those involved in installation management and
computer processing.
- Procedures for data preparation, data control and operating functions; access to the
computer and its software and their custody.
- Terminal controls in interactive systems.
- Physical security and risk management which ensure environmental controls.
3. The following points should be covered while reviewing the installation controls.
- Obtain a list of hardware including computer, ancillary and terminal equipment in
use indicating model, performance details and check the existence of this
equipment.
- Obtain an organisational chart which is uptodate and see how the computer fits
into the overall organisation.
- Obtain an uptodate staff organisation chart of the computer department showing
the relative responsibilities and authorities and note any changes on review.
- Obtain job specification(role definition) for senior computer staff and supervisors
of the ancillary section and note any changes.
- Obtain the details of standards and norms fixed for each of the functions like data
control, data preparation, system operation and verify their implementation:
computer utilisation per shift in terms of Central Processing Unit(CPU) time
and peripheral use;
key depressions per shift per data entry operator and error allowance;
document standards and controls-batching, balancing and sequencing;
run to run controls maintained by system operators;
whether manuals are maintained and kept uptodate specifying the control
procedures and whether they are enforced in practice-through a 'test check'.
- Obtain and verify existence of the following terminal; controls to protect data and
system integrity;
physical access controls to terminal rooms;
software controls through password protection and user directories;
logging of terminal activities by all users.
- Obtain details of security measures, both physical and system, for check and
review of the following;
adequacy of protection of hardware and software against risk of fire(fire
prevention steps and fire fighting arrangements);
maintenance of hardware and system software;
air conditioning and protection against possible radiations, vibrations;
422
possible industrial action, malicious action by programmers, operators, input-
output staff(discontent among computer operating staff);
security, awareness and training provided to all employees;
emergency shut-down procedures in case of power failures;
safe custody of software and data files and tape library;
adequacy of back-up files(off-site storage included);
operator access to programme files and data;
procedures for reconstructing files in the event of loss or disk errors/tape
errors(contingency plans);
computer equipment back-up through the use of compatible equipment at
other dispersed sites;
computer room should be off limits to all except systems operators, hardware
engineers; and
insurance of the installation to cover possible risk.
1710. Audit Review of Systems Under Development:
1. The overall objective of audit is to ascertain whether adequate controls are incorporated
during the system development phase and to ensure that these controls form part of the
operational systems when implemented and that any amendment to the system does not
invalidate the controls. The auditor, as a user of the system, should, therefore, involve
himself during the system design so that he can evaluate the need for controls and
auditability requirements while the system is being developed. This will avert the need
for 'retrofit' controls at a later date.
2. While reviewing systems under development, the auditor should examine the following
points either through questionnaires or by interviewing the system development groups.
- Whether a published standard methodology is being used for designing and
developing systems.
- Whether there is a common understanding by all parties-users, systems analysts,
management and auditors - of the basic structure of both manual and computer
processing activities, as well as of the concepts and needs for control and of the
applicable control techniques. This understanding must be reached first at a non-
technical user level.
- Who authorises EDP applications development - user or steering committee or
management?
- Whether the system development work was proceeded by a feasibility study to
determine the most appropriate solutions to standard problem?
- Whether there is adequate cross referencing between the following stages;
content and format of preliminary studies,
feasibility studies,
423
system specifications,
programme coding
- Whether project management techniques are applied in system development
work-that is to say, are there project decision milestones, time and cost estimates
so that progress could be monitored against estimates?
- Whether programming standards using modular, structured methodology are
being adhered to in coding?
- Whether existing in-house or external available application packages were
considered before deciding upon new in-house application development?
1711. Audit Review of Production Systems:
1. "EDP application" refer to production system which are processed on an EDP facility,
such as a pay roll system or an inventory control system. When the auditor proceeds to
perform the audit of applications systems, the process consists of:
- Obtaining, understanding and reviewing documentation (physical and
documentary evidence);
- Interviewing the EDP personnel and surveying the users of the applications on
production stream for testimonial evidence;
- Completing questionnaires for testimonial evidence; and
- Reporting on the basis of physical, testimonial and documentary evidence
collected in the course of EDP audit.
2. Documentation of applications is a by-product of the system development function. The
accepted standards require that documentation should consist of system description,
System flow chart, Process description, process flow chart, data dictionary, input
forms/files, output reports/files, computer operator run manual, user manual, data entry
instructions, report distribution. The auditee documentation should be reviewed to see
whether it conforms to these accepted standards.
3. The following EDP personnel may be interviewed by EDP manager, system analysts,
systems development group, supervisors. The purpose of the interview is to obtain the
following information.
- whether there is any wastage/redundancy in relation to the work load;
- case of maintenance/operation of the application systems;
- processing problems such as returns due to inefficient system design/programme
coding weakness;
- cost effectiveness of ongoing applications systems.
4. In the audit of applications systems, the most important method of assessing the
usefulness of applications is to survey the various users and obtain their views through
interviews and questionnaires. The following points may be included:
424
- Are the users sufficiently aware of what the systems will do for them?
- Are users sufficiently involved in system review, manual forms design, clerical
procedures, input/output controls, testing etc.?
- Are users aware of responsibilities to make data available, to ensure that all data
are adequately processed, to arrange back-up facilities and recovery procedure and
to initiate action to incorporate changes in regulations?
- What percentage of time the user makes use of computer output?
- To what extent the user considers the application important and relevant?
- Whether the computer output for the most part has to be reconciled with other
documents before it is relied upon?
- Is the computer output accurate, timely and easy to use?
5. The audit of an application system which is operational involves verification of
input/output controls, processing controls and audit trail. Testimonial evidence may be
obtained through the following questionnaire in the course of audit to come to a
reasonable conclusion regarding existence of controls and their adequacy.
- Whether the data processed are genuine, complete, accurate and not provisional?
- Whether expected output is produced and distributed on time?
- Whether application programmes process the data as intended and accurately
(refer EDP audit techniques)?
- Whether a complete audit trail is available for tracing back a transaction from the
final result to the initial input?
- Whether the data and changes to it are authorised by appropriate authority both in
the user and computer departments?
- Whether schedules for receipt of input data are maintained and what is the extent
of compliance?
- Whether there is a preliminary check on input data to ensure completeness?
- Whether the application system provides for the following programmed controls;
i. check for missing/duplicate transactions; e.g.
ii. check for continuity of goods invoice numbers issued by a station for
missing numbers
iii. more than one subscription for the same month for one Provident Fund
account number
iv. controls on rejected items and keeping them under computer suspense;
425
v. the monthly treasury transactions are rejected if they do not have valid
heads of account as given in the budget master. The rejected items are
kept under suspense and control totals along with valid transactions tallied
with the cash account and list of payments.
vi. Rejection of issue notes in a stores accounting system due to want of
balance.
vii. Input validation for data purification(alpha-numeric checks to conform to
data types), personal identity number should be numeric, station name
field is aplabetic.
viii. Station name field is alphabetic(depends on system requirements),
Limit/range checks; e.g.
ix. Overflow checks; e.g.
x. Some fields should not be blanks or zeros(mandatory fields), e.g.
xi. In a leave accounting system, the leave type code cannot be left blank
since the entire transaction will be invalid without this.
xii. A treasury transaction should indicate in the relevant fields whether it is
voted/charged, plan/non-plan and not be left blank.
xiii. Check digits; e.g.
xiv. In a payroll system, the account number, which is a control field to
identify an employee, has a built-in check digit. The programme works
out the check digit on the basis of the account number input and verifies
the correctness of the check digit given.
xv. Compatibility checks; e.g. if the transaction type is for official receipts in a
financial accounting system, the account cannot be a negative value.
xvi. Totals for a batch/lot; e.g. the batch total for a major head under a treasury
is worked out on the computer and tallied with the total given in the
schedule of payments/receipts for that batch (to ensure complete
accounting of transactions in a batch).
xvii. Record totals summaries for reconciliation; e.g. in a freight accounting
system, when a goods basic tape is created it gives the total number of
records, which should tally with the total number of invoices input.
xviii. Whether output reports are test-checked before being distributed to the
user department and the output is produced in accordance with a
prescribed schedule.
1712. Audit Trail and its Objectives:
426
1. The audit trail objective is to obtain sufficient evidential matter regarding the reliability
and integrity of the application system. To achieve this, the audit trail should control
enough information to allow management, the auditor, and the user;
- to recreate processing action;
- to verify summary totals; and
- to trace the source of error and abuse.
2. The audit trail should include the following information:
- System information including start up time, stop time, restarts, recovery etc.
- Transaction information including input items which change the database, control
totals and rejected items(relevant to database application).
- Communication information including terminal log on/off, password use, security
violation, netword changes and transmission statistics(relevant to transaction
processing (TP) applications).
3. In a computer system, the audit trail may not always be apparent as in a manual system
since data are often retained in magnetic media and output is limited to a small number of
total items processed with reports produced only on exception basis. The general
procedure is to first investigate control totals and run to run totals within the whole
system and then to check and substantiate the audit trail by limited checking through
records and files or by taking intermediate printouts of audit interest. If the design of the
computer system does not provide for adequate audit trail, this should be brought out in
audit review, highlighting control weaknesses or lack of controls in the system. Apart
from this, there is a possibility of frauds, which might go undetected due to control
weaknesses.
1713. Audit of Database Systems:
1. The advent of database management system(DBMS) with the new generation of
computers has brought about a shift from conventional batch processing to on-line
interactive processing. DBMS requirements are developed in the light of a set of basic
objectives; viz. data independence, relatability, non-redundancy, integrity, security,
performance and compatibility with the existing concepts.
2. While reviewing the DBMS, in addition to general guidelines given for the audit of
application systems, the auditor should see that;
- The DBMS in use meets the requirements in the light of the basic objectives stated
above;
- Procedures exist for
Access controls (user's "right to know" and need to know basis with field level
access control definitions).
Maintenance of back-up
J ournalising all transactions for reconstruction in case of a crash
427
Roll back and recovery, and
Ensuring data integrity by protecting the stored data from being contaminated
through exclusive and shared control and by imposing restrictions on the
values that can be assigned to data items. When an application programme
terminates part way through an update procedure, it should be possible to
reverse the effect of changes to the database;
- The data dictionary is complete and update and could be relied upon as a
comprehensive documentation; and
- There is a data administrator who is assigned the responsibility for describing the
data, defining the data relationship and mappings, establishing data security rules,
specifying performance measurement procedures and evaluating the system on the
basis of the results.
1714. Review of Microcomputers/Office Automation:
1. In the past any cost justification of computer facilities was relatively straight forward
because savings in staff could very easily be identified and these savings usually
outweighed the cost of computerised applications. This approach is no longer practical as
the advent of microcomputers and the introduction of information technology have
shifted the emphasis from cost justification to improvement in the quality of service and
better management control of the resources available. This aspect should be borne in
mind by the auditor while reviewing microcomputer based system.
2. The purpose of audit is to see:
- whether there is a comprehensive EDP Policy for the organisation;
- that there is no unplanned proliferation of computers due to lack of coordination
of EDP facilities; and
- that only persons with extensive specialised training are employed to use
microcomputers, to ensure quality and standards of data processing(when tools are
introduced and used without detailed understanding, the potential for
misapplication always exists)
3. The software industry is full of "user-friendly" packages for microcomputer systems, but
in many cases these programmes have limited capabilities and are more suitable for the
novice operator. Users quite often do not consider what their requirements are and this
can have far reaching consequences with regard to acceptance of the system.
4. Audit implications of office automation steam from weakening overall controls in the
office automation environment. Major control implications of office automation are
listed below:
- loss of audit trail due to reduction/elimination of paper work;
- rejection of source documents/authorisation and authentication of input;
- information access by more people and hence possible abuse;
428
- creation of sub-standard systems, and
- inadequate back-up and recovery facilities.
These control implications apply equally to any microcomputer based system in operation.
Therefore, audit should verify that at least the controls, procedures and security aspects that
are currently available in the manual system are taken care of, if not improved upon, while
designing an automated system. In addition, audit should verify that network security, proper
communication provision and user interface exist where automated systems are installed and
in use.
5. In general, information should be automated only when there are clear benefits to be
gained from doing so. For example, automation makes sense if the volume of
information is large, requiring analysis in several different ways and/or used by various
users in different ways.
1715. EDP Audit Techniques:
1. EDP audit techniques refer to the use of computers, including software, as a tool to
independently test computer data of audit interest.
2. Some well-established techniques are;
- collecting and processing a set of test data that reflects all the variants of data and
errors which can arise in an application system at different times;
- using integrated test facilities, built into the system by the auditee to help the
auditor in his requirements, as one of the users of the system;
- simulating the auditee's application programmes using audit software to verify the
results of processings;
- reviewing programme listing periodically to see that there are no unauthorised
alterations to the programmes;
- using either commercial software or inhouse developed programmes to interrogate
and retrieve data applying selection criteria and to perform calculations; and
- extracting samples of data from the auditee data base/files, using sampling
techniques, for post analysis and review. The nature of data and type of analysis
required determine what technique is to be employed. The auditor should give the
sample size and design.
3. Computer audit techniques are employed for:
- verification of ledger balances and control totals independently;
- recalculation of critical computerised calculations to check mathematical
correctness;
- range checks to verify the working of computer-based controls and testing for
exception conditions;
- testing the validity of data which have gone into the master file;
429
- detection of data abuse/frauds; and
- substantive testing with large volumes of data which is difficult, if not impossible,
in a manual audit process.
4. The particular computer audit technique employed depends on the type of application
system under review, the extent of testing required and the availability of resources in
terms of computer facilities and the level of EDP skills among the audit staff (audit skills
are assumed here). Where data volume is small and adequate printed information is
available to carry out a meaningful clerical audit, there is no need to employ computer
techniques, which are costly and time consuming. To elaborate further, the auditor
should break up his project of application system audit into three stages. In the first stage,
he will carry out the examination of audit trails, intermediate printouts as required, system
logs, operational controls. As a result of audit in the first stage, if the auditor feels that
the adequacy of controls requires further verification, in the second stage he can carry out
compliance testing by using the test check method and integrated test facilities with
resident audit programmes. If the compliance testing exposes some control weaknesses,
substantive testing may be resorted to in the third and final stage using retrieval software
and simulation techniques with audit software.
5. Some EDP audit techniques are briefly described;
1716. Test Deck Method:
1. In this method, the auditor prepares both real and fictitious data to test the accuracy of the
programmes. In designing the test data, care should be taken to include all variants to test
all possible conditions. Using this techniques audit can check whether;
- the system and programmes operate as specified in the documentation;
- only valid data is accepted and processed correctly;
- erroneous data is rejected as anticipated; and
- exception conditions are tested by the application programmes to avoid absurd
results.
2. Integrated Test Facilities: This technique requires involvement of auditors at the system
development stage. Separate programmes are written exclusively for audit use and are
operated by auditors at periodic intervals. These programmes reside in the software as an
integral part of the application system. For example, all the transactions which affect the
master file could be written into another file for post audit and review. Similarly, audit
modules could be built into the system to check exception conditions, like stocks below
minimum levels, issues without balances and purchases of items when no issues have
been recorded, in the case of an inventory control system.
3. Simulation Using Audit Programmes: While, in the test deck method, the auditee's
programmes are tested with the auditor's data, in the simulation method, the auditor uses
his own software to test the auditee's data and then compare the results of this
independent processing with those of the auditee. This is a very time consuming and
expensive method. Moreover, this calls for special programming skills on the part of the
auditor. Employment of this technique is generally discouraged. It is certainly not suited
to our environment since we do not have the required time or resources. The time
430
required for developing simulated systems could be profitably employed in developing
new systems of audit interest.
4. Programme Review and Comparison: This technique requires programming skills on the
part of the auditor to periodically go through the programme listing and compare such
listings for each application system. It is a time consuming method. There are utilities
available today for comparison of files on the computer itself. However, the examination
of programme listings can only be done manually. This technique is not recommended
for our environment since we do not have the time or resources to do this job. Moreover,
the object module could be manipulated by a skilled programmer without touching the
source programme files; in such situation, the examination/comparison of programme
files does not serve the purpose.
5. Retrieval/Interrogation Programmes: Retrieval software should be comprehensive and
include the following functional routines/facilities to:
- retrieve record by record from a file;
- total value fields for reconciling computer figures with booked figures;
- perform calculations on numeric data to check the resident modules' mathematical
correctness;
- sort and merge data in any desired sequence;
- select data from an indexed file on any desired criteria; and
- print reports for post-audit analysis and review
There are a number of commercial packages like FILETAB, EASYSTRIEVE,
IDEA available off the shelf. There are versions for use both on conventional files and data
base systems. The auditor can also develop inhouse retrieval programmes. Such projects are
not only expensive but also call for high levels of programming skills and knowledge of a
variety of computer languages. Also auditee data files would require conversion to an
acceptable format before retrieval software can be used. Even for using commercially
developed packages, the auditor is required to possess:
- knowledge of the computer system with the auditee;
- programming skills to contract queries X-retrieve data;
- knowledge of the operational aspect of the package; and
- the layout of data files subject to examination.
(Availability of computer resources and time is assumed).
Today many DBMSs have built-in query and report writer facilities.
Unstructured queries on the data files are also possible in some advanced systems. These
utilities could be profitably employed for audit purposes. The auditor will be able to obtain
the relevant information from the auditee's computer centre.
The distinct advantages of retrieval packages over other methods are 100 per
cent review of data and accuracy of processing and effective use of the auditor's time in
analysing results of interrogation. Use of retrieval software will, however, always remain a
431
problem area primarily because of the multitude of hardware and software systems in use in
various departments, necessitating expertise in several programming languages.
1717. Work Papers of EDP Audit: The preceding processes are only tools in the hands of
the artisan, namely the EDP auditor. The shape of the final product depends on his level of
skills. The work papers at the end of an EDP audit exercise constitute the evidential matter
on which conclusions will be based. Stated broadly, the contents should address the
following issues:
- Does the auditee have an EDP Policy or clearly defined objectives for acquiring
EDP facilities?
- How much has been invested in commissioning the facilities and the details of
inventory, both hardware and software?
- Are the installed EDP facilities adequate to meet the objectives?
- How are the resources utilised?
- What are the applications processed on the EDP facilities and their utility and
impact on management/users?
- Is there a relationship between the management objectives and the products
churned out by the computer centre?
- What is the extent of controls with reference to installation, applications and
processing to ensure safety of assets, data integrity and reliability of the end
products?
- Is there a review of EDP functioning by management and, if so what is the
periodicity?
- Where does the EDP set-up fit in, considering the overall auditee organisational
set up and what is the position of the EDP incharge?

416
CHAPTER - XVIII
COSTING CELL SECTION
1801. Costing Cell has been constituted w.e.f. J uly 2003 to review the reports of the costing
cells of S.C. Railway. (Para 3.7.3 of report of committee on Railway Audit Norms)
Costing Cell is entrusted with the following items of work.
1) Review of report of work study cell: Work study reports which recommend
maximum number of posts to be surrendered may be selected after two years of its
completion. The review should be conducted annually. (Para No. 5.2 of minutes of
the Workshop on costing in Indian Railways held in the O/O PDA/CR on 25
th
and
26
th
April 2005)
2) Review of introduction / change in frequency / extension of passenger trains 6
months after introduction. 2 to 5 existing trains at random duly selected by PDA
are to be reviewed for their profitability.
3) Section has to review areas, which are not covered by Railway costing cells such as
expenditure incurred on operation and maintenance of track, track machines, rolling
stock, etc. (Para 3.7.1 of RANC)
1802. Review of Work Study Reports: A Work Study Organisation is functioning on each
Zonal Railway for undertaking a detailed study of specific projects on the Railway with a
view to streamlining and standardising the working procedures, cutting down unproductive
work and achieving economy in expenditure and better utilisation of resources. The work
study may be of projects initiated by the Railway Board, those suggested by Railway and
approved by the Railway Board or those referred by Heads of Departments.
After the work study of a selected project is completed, a Report is compiled
bringing out the findings and recommendations of the Work Study Group. The Work Study
Reports should be reviewed in audit as and when received.
For this purpose, a register should be maintained for recording the particulars
of :
(i) Projects selected by the Railway Board/General Manager/Head of Department for
work study.
(ii) Period during which the work study in respect of item (i) above was completed and
the date of issue of the work study report.
(iii) Month in which the Work Study Report was reviewed in Audit.
(iv) The remarks/comments as a result of the review.
While noting the particulars in the Register, the continuity in the numbering of
the Work Study Reports should be watched.
417
This register should be submitted to the Principal Director of Audit for
information every month during the first week. Besides, whenever a Work Study Report is
received by the Section, within a month, they should submit a note to the Principal Director
of Audit inter-alia bringing out the interesting points/aspects which could usefully be brought
to the notice of the field units for further probe/action/guidance.
(Authority: P.O.O. No.49 dated 16.8.1973 and P.O.O.No.78 dated 1.6.1985).

MONTHLY REPORT OF THE STATE OF WORK IN _____________________ SECTION/DIVISIONAL AUDIT OFFICE
_____________
FOR THE MONTH OF ________________

I. (a) Items of work/return etc. shown as in arrears in the last monthly report (see section II) and the extent to which they have been
cleared, with reasons for items still outstanding:


I. (b) Returns/registers not despatched/submitted/received or despatched/submitted/received late during the month:

Whom due of despatch/ despatch/action taken to expedite the receipt
receipt

I. Outward submission of occasional returns due for the month:
Details of outward references outstanding for 6 months and more and action taken for their clearance:

Year No. of items Action taken for clearance
-2-
Month
II. INWARD REFERENCES:

No. letters Bd. Lrs. ------------------------------------------------------------------------------
(B - Dak) (A - Dak) Sl. Letter No. From whom Subject Reasons
No. and date received for delay in
disposal

as per last report.
during the month.
03. TOTAL (1 +2)
04. No. of letters disposed off
3 months etc.
07. No.of CAG's letters for which

-3-
Month

III. (a) PENDING CASES:

III (b)-ROC

IV. ARREARS IN AUDIT WORK:

A) External

i) Arrears due to arrears in Accounts Office: Total Man days ________________________________

(Year-wise breakup documents man-days clearance
may be indicated)

-4-
Month
ii) Arrears due to non-receipt of vouchers/documents. Total Man-days ________________________

Documents man-days clearance

(Year-wise and item-wise details may be indicated below together with man-days against each item)

-5-
Month


i) Detailed report on each item of arrears (i.e. Inspections and Central Audit in Man-days may be furnished here).


Officer doing Original ORIGINAL AUDIT POST REVIEW CURRENT REVIEW
Audit/Post Review -----------------------------------------------------------------------------------------------------------------------------
Date of Date of Date of Date of Date of Date of
Selection Completion Selection Completion Selection Completion

Section Officer(I)/




-6-
Month
V. INSPECTIONS:

a) Progress of Inspection (Executive Office & R.M.W)

No. of Inspections Inspections to be conducted Inspections actually completed Date No.of Inspections Reasons for
Reasons during the month during the month of in arrears on the the
Inspection as per
last day of the approved programme -------------------------------------- Inspection last day of the arrears
previous month ----------------------------------- Number Name of Offices month(1+2-3)
Number Name of From-To
Offices
1 2 3 4 5 6

Executive

R.M.W
-7-
Month
b) Issue of Inspection Reports:

month Number Name of Offices From-To Group
Officer/
Pr.D.A.
__1__________________2_______________3___________4____________5___________6____________7__________8_______________

C. Details of offices against which NIL Reports are proposed & approved.

-8-
Month
VI. (a) Outstanding Part.I Inspection Reports, Part.I Test Audit Notes and Special Letters


Year Opening Issues Closure Closing Balance Money Details of the offices on which
Balance -------------- ---------------- ------------------- Value the Part I IRs were issued during
----------- No. Paras No. Paras No. Paras (Rs) the month.
No. Paras Office/ Report No.

-9-
Month
Case No.& Date Date of latest reminder/ Level at which reminder
Interim reply received was issued

-10-

ii) Part.I Audit Notes:

-------------- --------------- --------------- ------------------ (in Rs) Interim reply received.
No. Paras No. Paras No. Paras No. Paras

-11-
Month
iii) Paras of Part-I Inspection Reports/Audit Notes issued during the month:

while issuing the original the month (in Rs)
objection

a) Part-I Inspection/ Reports/AN.

b) Part-II. Inspection Reports/ Audit Notes:

-12-
Month

-------------- --------------- --------------- ------------------ (in lakhs

-13-
Month


-14-
Month

objection



-15-
Month
VIII (b) Outstanding Inspection Reports (Part-II) and Test Audit Notes (Part-II):

INSPECTION REPORTS (PART-II):

-------------- --------------- --------------- ------------------ (in thousands

TEST AUDIT NOTES (PART-II):

-------------- --------------- --------------- ------------------ (in thousands

-16-
Information of arrears (in man-days) Month
Section INTERNAL Increase (+) EXTERNAL Increase (+)
No. ------------------------------- Decrease (-) ------------------------------- Decrease (-)
Mn / Qtr Mn / Qtr Mn / Qtr Mn / Qtr
IVA(i)
IVA(ii)
IVB
V (a)
V (b)

I certify to the best of my knowledge and belief that the work is upto-date and test audit and other work required to be completed upto
the end of the month/quarter has been completed with the exception of the arrears detailed above.

Section Officer/ Signature of Divisional Audit Officer/
Asstt. Audit Officer Audit Officer/Sr.Audit Officer
Dated:

A.Au.O.(COR) Senior Audit Officer(COR)

Deputy Director/Director Principal Director of Audit

CERTIFICATE ON THE CHECK OF PASSES
I certify that I have verified / checked Passes and PTOs issued by the Administration
section during the Quarter Ending 30.06.2007. Remarks in the check of Passes are given in
the Note enclosed. I certify that the continuity of number of unused folios of Passes and
PTO Books has been verified by me.
Encl: One Note.
SR. AUDIT OFFICER (COR)
OFFICE NOTE
Sub: Check of Passes and PTOs issued from 01.04.2007 to 30.06.2007 by the
Administration Section.
* * *
The following observations are made on the check of Passes.
1. As per the provisions of OM (483 Para read with P.O.O. 94) Passes on Home line and
PTOs to Group C and D are to be signed and issued by the Section Officer
(Admn.) and all other Passes / PTOs are to be issued by Audit Officer (Admn.).
However, Second class Passes on other than home line are also being issued by the
Section Officer (Admn.). This may please be stopped forth with until revised
procedure / decision taken for the purpose.
2. Complimentary Passes: Declarations from Retired employees for inclusion of
Unmarried daughters, Widow mother in Passes are not available in the file given for
verification, in respect of the following.
a. Sri N.V.N. Charyulu, Retd. Au.O.
b. Sri K.V. Thammi Naidu, Retd. A.Au.O.
3. The declaration given by Sri S.V. Sarma, Retd. Au.O. including his Brother aged 63
years on Dependant is not valid under Pass Rules.
4. As per extant provision, declarations have to be obtained from Staff / Retired
Officials once in 5 years who include dependents in their Passes. These have to be
verified and filed for reference. The file given for verification does not contain
declaration from all staff members of in the main office and Annex Building. This
may be looked into and action taken for obtaining the declaration afresh from all the
above staff members.
5. Return of Passes: As per the Pass Rules, staff have to return the Passes unused / used
with one month from the date of expiry of the availability period duly filling the
columns and certificate on the reverse of the Pass. The staff members who have
been listed in the Annexure have members who have been listed in the Annexure,
have not returned the Passes within the mandatory time. Action may be taken as
prescribed in the Pass Rules.
SR. AUDIT OFFICER (COR)
NON RETURN OF PASSES AFTER UTILISATION
Ist CLASS A Available Upto Name (S/Sri/Smt.)
No. 196390 of 23.04.2007 30.04.2007 (C ) M. Mukteswara Rao, Sr.Au.O. (R
)
No. 196393 of 27.04.2007 30.04.2007 (P) V. Nageswara Rao, Sr.Au.O.
No. 196400 of 08.05.2007 22.05.2007 (On-Duty) V.S.V. Prakash, Au.O.
No. 196417 of 06.06.2007 05.09.2007 (P) K. Mani, Dy.Dir.
(Kannur to Secunderabad for self)
No. 196423 of 18.06.2007 02.07.2007 (On-Duty) R. Chandra Sekhar (issued from
SC to Chandigarh B/J , NGP,
NDLS)
No. 196302 of 22.01.2007 21.04.2007 Sri Ramesh
Ist CLASS
No. 660644 of 09.03.2007 30.04.2007 (C ) Sheela Seshadri, Sr.Ar. (R )
No. 660645 of 12.03.2007 30.04.2007 (P) V. Nagesh Kumar, HAW
No. 660646 of 12.03.2007 27.03.2007 (D) P. Ravi Kumar, S.O.
No. 660653 of 15.03.2007 05.04.2007 (D) Ch.T.V.S. Prasada Rao, A.Au.O.
No. 660658 of 26.03.2007 30.04.2007 (C ) P. Suguna Sekhara Rao,
S/o Sri P. Atchyuta Rao
No. 660659 of 26.03.2007 30.04.2007 (C ) C. Vittal Rao
No. 660667 of 04.04.2007 09.04.2007 (D) T. Sudhakar Rao, Sr.Ar.
No. 660677 of 11.04.2007 10.07.2007 (P) K.S. Bhoopathi, Sr.Ar.
No. 660690 of 25.04.2007 11.05.2007 (D) D.V.V.R. Bhattar
Ist CLASS A PASSES (NON-RETURN)
No. 196307 of 29.01.2007 31.03.2007 Alex Chariyan
No. 196310 of 01.02.2007 30.04.2007 K. Srinivasan
No. 196315 of 02.02.2007 01.05.2007 Mani. K Dy.Dir.
No. 196321 of 06.02.2007 31.03.2007 S.R. Reddy
No. 196328 & 329 of
09.02.2007
31.03.2007 K.C. J hansi
No. 196335 of 18.02.2007 30.04.2007 V. Gopala Rao
No. 196336 of 19.02.2007 31.03.2007 C.R. Sarma
No. 196348 of 07.03.2007 30.04.2007 R. chandra Sekhar
No. 196350 of 12.03.2007 11.07.2007 Annaji Rao, SN
No. 196353 of 14.03.2007 26.03.2007 (O/D) P.Linga Brahmachary
No. 196356 of 14.03.2007 30.04.2007 K.V. Thimmaji Rao
No. 196358 of 15.03.2007 SC to CEN (O/D)
05.04.2007
V. Nageswara Rao
No. 196365 of 16.03.2007 30.04.2007 B. Ratna Kumari
No. 196368 & 369 of
23.03.2007
30.04.2007 (C ) N.V.J . Das
No. 196374 of 26.03.2007 30.04.2007 (C ) N.V.N. Charyulu
No. 196375 of 28.03.2007 27.06.2007 K.C. Thomas
No. 196383 of 10.04.2007 30.04.2007 N.V.N. Charyulu
II CLASS
No. 315102 of 25.01.2007 V. Vijay, Sr.Ar. 30.04.2007
No. 315103 of 29.01.2007 A.V. Kannan, W/M 30.04.2007
No. 315122 of 23.02.2007 Pushpanjali Gupta, J HT 22.05.2007
No. 315128 of 27.02.2007 Pushpanjali Gupta, J HT 31.03.2007
No. 315144 of 12.04.2007 Zahyda Khatoon, Sr.Ar. 30.04.2007

Organisational set up of the
O/o PRINCIPAL DIRECTOR OF AUDIT
Sr.Audit Officers/
Audit Officers
DIRECTOR
1. Secretary to
Principal Director
Sr.Audit Officers/
Audit Officers
Sr.Audit Officers/
Audit Officers
DEPUTY DIRECTOR
PRINCIPAL DIRECTOR OF AUDITT
2. Expenditure
Headquarters
1. Establishment
Headquarters
3. Special Audit Groups(also
known as ECPA Sections)
2. Reports
p
of Audit-cum-
Coordination
2. Traffic Audit
1. Administration
& Bills
4. Books & Budget
3. Inspection
Headquarters
4. EDP & IT Audit
Intensified Inspections
3. Divisions at
Secunderabad,
Hyderabad, Hubli,
Vijayawada & Guntakal
7. Workshops/Lallaguda,
6. Contract Audit
5. Stores
Headquarters
Headquarters
9 RE/BZA
8. Construction units at
Secunderabad,
Vijayawada and
Rajahmundry
7. Workshops/Lallaguda,
Hubli, Guntapalli
and Tirupathi
9. RE/BZA
(Residuary items)

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