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For internal circulation of BSNL only 1
E4-E5 (Finance)
POWERS OF PSUs &
DELEGATION OF
FINANCIAL POWERS
2
WELCOME
• This is a presentation for the E4-E5 (Finance)
• Module for the Topic:
POWERS OF PSUS
DELEGATION OF FINANCIAL POWERS
• Eligibility: Those who have got the Upgradation from E4
to E5.
• This presentation is last updated on 15-3-2011.
• You can also visit the Digital library of BSNL to see this
topic.
For internal circulation of BSNL only
For internal circulation of BSNL only 3
WHAT IS DELEGATION?
– Is not passing on the work.
– Is passing on the responsibility and authority
– Is to entrust powers or functions to another.
– To enlist that person to complete the tasks on
your behalf.
For internal circulation of BSNL only 4
GENERAL CONDITIONS GOVERNING EXERCISE OF
FINANCIAL POWERS
• The exercise of powers should be strictly in
accordance with the
(1) Approved budget
(2) Business plan
(3) Investment plans
(4) Annual HR plans and policies of the company
(5) Rules and directives of the Central
Government/Administrative Ministry etc.
• These financial powers will be exercised strictly in
consultation with IFA of the respective Circles/SSAs .
For internal circulation of BSNL only 5
GENERAL CONDITIONS GOVERNING EXERCISE OF
DELEGATED POWERS
• Appropriate level of Accounts &Finance officer
decided by the Circle IFA.
Expenditure- to be limited to -the budget allocation and -
cash drawal
For internal circulation of BSNL only 6
MATTERS GENERALLY RESERVED FOR THE BOARD'S
APPROVAL IN BSNL
01.Annual programme of - PCSC
(i) Production,
(ii) Construction,
(iii) Sales and the
(iv) Corporate plan
of the company.
02. Estimates of
(i) Capital expenditure
(ii) Operational expenditure and
(iii) Revenue of the company.
For internal circulation of BSNL only 7
MATTERS GENERALLY RESERVED FOR THE BOARD'S APPROVAL IN BSNL
03.Organizational set up
and Setting up of standards to create new posts
Remunerations structure of its employees
Policy matters such as payment of bonus etc.
04. service conditions (pension, medical, TA etc)
05. contracts above a certain value
06. Pricing of telecom. tariffs
Technology implementation
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POWERS SO FAR DELEGATED
• Delegation so far given up to CGMs/GMs/TDMS
as Heads of circles/SSAs Etc. & Training
centers.
• Beyond the powers delegated –
The BSNL board will convey such orders with
the approval of " Competent Authority" in the
BSNL BOARD.
For internal circulation of BSNL only 9
MAXIMUM FINANCIAL POWERS
• Is inclusive of the powers delegated to subordinate authorities.
• Provided that the total expenditure in that year in respect of that
office does not go beyond the limits of power of sanction per office
per annum of the higher authority
• (ii) In case of sanction to expenditure by a higher authority
because the amount of expenditure on that particular occasion
exceeded the power of sanction of the lower authority in respect
of one office
-The lower authority can still continue to sanction expenditure up to
the limit of its own power of sanction
-Provided that the total expenditure in that year in respect of that
office does not go beyond the limits of power of sanction per
office per annum of the higher authority.
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REGISTER TO WATCH ANNUAL AND OTHER LIMITS
• In case of delegation with certain limit on such
authority
• A record of all sanctions accorded by him for
each such class of expenditure should be
maintained.
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REGISTER TO WATCH ANNUAL AND OTHER LIMITS
• The manuscript form in which such register is to be
maintained is given below :
(i) Sl.No. of the entry No.
(ii) Date of sanction,
(iii)Name of the office incurring the
expenditure with brief particulars of the
charge,
(iv) Amount of each sanction,
(v) Progressive total up to and including
each entry of a new sanction
(vi) Remarks
• (Rule 348 of P&T F.H.B.Volume I)
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CONSULTATION WITH IFA
On all matters falling with in the field of their delegated powers.
• On proposals having financial implications referred to
higher authorities for approval or orders
• This fact should be indicated specifically in the letters.
• CGM may over rule the advice of IFA.
• It should be done by a written order, recording reasons for
doing so.
• And intimated to Corporate office.
• IFA is always declared one level below the officer exercising
the financial power.
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Contd..
• Full responsibility for a decision taken in exercise of the
delegated financial power rests with on the authority who
overruled the advice of the IFA.
All sanctions issued in exercise of the delegated powers after
consultation with the IFA should have the following subscript.
“ This sanction issues after consultation with the Internal
Financial Advisor”
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CONVEYING OF SANCTIONS-DOMESTIC ARRANGEMENT
• The officers attached to an office do not function
independently but convey as a domestic arrangement, in
accordance with such local instructions as may be issued by
the head of office to regulate working of his office.
• The level up to which each officer may decide cases and
convey sanctions/orders of the head of the office is a matter
entirely left to the discretion of the head of the office.
For internal circulation of BSNL only 15
DOMESTIC ARRANGEMENT
• Any such domestic arrangement should be made:
• In consultation with the IFA
• By a local order indicating
The various officers who will exercise powers in the
name and on behalf of the head of the office and
The extent of power to be exercised by each.
• Thereafter such cases need not be referred by the
officers to IFA while exercising these powers, except in
cases of doubt or difficulty. They should however take
the concurrence of Finance adviser at appropriate level.
For internal circulation of BSNL only 16
DOMESTIC ARRANGEMENT
• The Head of the office shall continue to be responsible
for correctness regularity and propriety of their
subordinates.
• An in-depth review
• The powers delegated are not being abused.
• If necessary, the orders can be revised.
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RECURRING EXPENDITURE
• Recurring expenditure means the expenditure
which is incurred at periodical intervals.
Non-Recurring Expenditure:
• Means expenditure other than recurring
expenditure.
• In respect of non-recurring contingent
expenditure ‘each case’ means ‘on each
occasion’.
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LOCAL PURCHASES in respect of items included in an estimate
• Items which are included in the estimate but are
beyond the powers of LP, are required to be
sanctioned separately by the competent
authority.
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CURRENT DUTIES –EXERCISE OF FINANCIAL POWERS
• An officer appointed to perform current duties of another post in addition to his own duties w/o extra remuneration, Cannot exercise statutory powers. (GOI MHA F.7/14/61_Estt(A) dated 24.01.63.)
For internal circulation of BSNL only 20
Obtaining of ISO Certification
• CGM s
• Services/QMS
• ISO certifying agencies- BIS
• Documentation charges
For internal circulation of BSNL only 21
ITEM NO. 2.1.4 REPETITIVE PROJECTS
• Decision on each project shall be taken only
with the concurrence of Circle IFA.
• Examined with reference to anticipated
benefits and validity.
• This is not applicable in respect of Cellular
Mobile Net work.
For internal circulation of BSNL only 22
ITEM NO. 2.1.4 REPETITIVE PROJECTS
– once the investment proposal (for tendering
/procurement of any item/project) is approved by
the Board, circles will not be required to obtain
further approval.
– All the procurements SHOULD BE in accordance
with the approved plans and projects and in
accordance with the procurement manual of the
company.
(BSNL HQ NO. 6-5/2004-EB dated 7.3.2005.)
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ITEM NO. 4.2. PURCHASE OF STORES
• Items which were earlier in centralized list and now
decentralized will be procured by CGMs. For other items,
which were being procured by CGMs earlier to revision
of power vide letter No. 6-15/2000-EB dated 4.10.2001,
their powers remain with them and also in respect of
such items power for delegation down below will also
remain with CGMs as deemed necessary by CGMs.
• ( BSNL HQ No. 6-15/2000-EB dated 28.02.02)
For internal circulation of BSNL only 24
ITEM NO. 7.7
ADVANCE PAYMENT FOR PURCHASE OF VEHICLE
The exercise of power under this head is subject to the
following conditions:
• If declared as a post-deposit party, no advance
payment should be allowed.
• Wherever the items to be procured are not in the
DGS&D rate contract and the item is approved for
purchase by BSNL Corporate office, then 100%
advance payment can be allowed to the
manufacturer of the said vehicle directly and not to
any of the dealers.
For internal circulation of BSNL only 25
ITEM NO. 7.7
ADVANCE PAYMENT FOR PURCHASE OF VEHICLE
• Manufacturer should not have a lead time of more than
one month for delivery of the vehicle to the consignee.
• In case of default in delivery schedule exceeding one
month then the usual interest is applicable.
• Powers should be exercised by the head of the Circles
personally with the concurrence of the Circle IFA and not
to be re-delegated to lower formations.
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IFA’S POWERS FOR MEETING EXPENDITURE IN
CONNECTION WITH AUDIT INSPECTIONS
1. Working lunch/dinner for meeting /conference
with Auditors (as well as staff detained in
connection with the audit job):
Rs.100/- per head on each occasion.
2. Light refreshment for meeting/conference with
Auditors( as well as staff detained in connection
with the audit job):
Rs.50/- per head on each occasion.
For internal circulation of BSNL only 27
Contd..
3. Hiring of vehicle for the use of branch Auditors: Full
power
4.Provision of Stationery and other items associated with
audit:
Full powers. For this purpose IFAs will have an imprest
account of Rs.5000/- which will be utilized by an officer
authorized under them with
approval of expenditure given by IFAs.
• IFAs of SSAs: The IFAs of SSAs will also exercise the
powers indicated at 1 and 2 above for the audit parties
and staff detained, subject to a ceiling of Rs.30,000/-
per audit cycle.
For internal circulation of BSNL only 28
Guidelines from BSNL HQ – Purpose Intended
01.Hiring of vehicles
02. Advertisement & Marketing
03.House keeping
04.Payment of Honorarium
05.Rewards / Awards
01.To ensure easy mobility of staff/officers for better maintenance
02.For improving customer care and marketing
03.For improving image of the company
04To motivate staff for better performance
05.To elicit suggestions for improvement of telecom. Service.
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Contd..
06.Payment of productivity linked
incentive
07.Writing off losses
08.Scrapping of obsolete stores/
equipments
09.Grant of donations/grant to Co-
operative stores
10.Sponsorship of sports events
etc.
06.To increase productivity
07.To settle cases early/
expeditiously
08.To reduce inventory of useless
stores
09.To improve staff welfare
10.To promote company’s image
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Contd..
11.Acceptance of tenders and award of works
12.Acceptance of single tender in case of limited tender
13.Supply of meals for staff detained in office in case of emergencies
14.Gifts to visiting dignitaries
15.Insurance of movable and immovable items
11.To speed up implementation of works of achieving targets
12.For expediting urgent works
13.For staff welfare
14.For improving the image of the company
15.To ensure safety of departmental property and prevent loss.
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