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Control over expenditure
1
Presented by
M.Nageswara Rao, SSO(A)/SC, SC Rly
Otherwise, what happen
Control over Expenditure
Sanction of competent authority and availability of funds
Control over expenditure- Tools
2.Budget proportions
3. Monthly Financial Reviews
5. Schedule of Powers
Standards of Financial Propriety-Para 116 of Finance code In the exercise of their financial powers, the sanctioning authorities must pay due regard to the following principles :-
The expenditure should not prima facie be more than the occasion demands,
that every Government servant should exercise' the same vigilance in respect of expenditure incurred
from public moneys as a person of ordinary prudence would exercise in respect of the
expenditure of his own money
No authority should exercise its powers of sanctioning expenditure to pass an order which will
be directly or indirectly to its own advantage.
Standards of Financial Propriety-Para 116 of Finance code In the exercise of their financial powers, the sanctioning authorities must pay due regard to the following principles :-
Public moneys should not be utilized for the benefit of a particular person or section of the community
unless-
a. the amount of expenditure involved is insignificant
a claim for the amount could be enforced in a court of law
the expenditure is in pursuance of a recognized policy or custom.
Standards of Financial Propriety-Para 116 of Finance code In the exercise of their financial powers, the sanctioning authorities must pay due regard to the following principles :-
The amount of allowances, such as travelling allowances, granted to meet expenditure of a
particular type, should be so regulated that the allowances are not on the whole sources of
profit to the recipients.
2.Budget Proportions as a tool of expenditure
For the purpose of carrying out a
meaningful comparison of the
actual working expenses for (and
to end of) the month with the
budget allotment
it is necessary to distribute the
sanctioned allotment for the
year over the twelve months after taking all known factors of
disturbance or special features into
account.
Accounts Officer in consultation with the officers responsible for the control of expenditure, the estimated progressive
expenditure under each sub head of a grant keeping in view the following factors:
1.Throw forward from the previous year.
2. All expenditure whether in cash or by transfer, the liability for which already exists, but which is not likely to be distributed evenly during the year, whether because it is of a periodical nature, or because it is contingent on the receipt of supplies, or for any other reason.
Accounts Officer in consultation with the officers responsible for the control of expenditure, the estimated progressive
expenditure under each sub head of a grant keeping in view the following factors:
3. Expenditure which is practically fixed and evenly distributed throughout the year.
4. Other expenditure which is likely to be incurred during the year but liabilities for which have yet to be incurred.
5.The need to keep some amount as a reserve for meeting fresh or unanticipated expenditure
11
3.Monthly Financial Reviews
Pre
pare
d
by t
he
Divisi
onal/
Works
hop/
Constr
ucti
on
Acc
ounts
Officers f
or t
he
unit
whic
h t
hey ass
ociate
wit
h
the Financial Adviser and Chief Accounts Officer should arrange for the consolidation of these reviews into the Monthly Financial Review for the railway.
12
Monthly Financial Reviews
show the expenditure to the end of the previous month, against the allotment
Placed at the disposal of the controlling authorities
Under each sub head of the grant for which they are responsible
prepared in Form No. 513 and submitted to the controlling authorities every month.
13
Monthly Financial Review Proform
(Para 513 of I.Rly.Finance Code vol.I)HeadOf A/c
Budget allotment for 2012-13 Year
Proportionate Budget allotmentto end of June, 2012
Actual Expenditure to end of June, 2012
Actual expenditure to end of June, 2011
Expenditure up to June 2012 more or less (compare to column .3) i.e., 4-3
Expenditure up to June 2012 more or less (compare to column 5) i.e., 4-5
1 2 3 4 5 6 7
X 1500 500 600 450 100 150
Y 3500 800 500 600 (-) 300 (-) 100
Z 3500 1000 950 800 (-) 50 150
4. Estimates
Ordinarily, no expenditure can be incurred barring a few exceptions,
unless Competent authority sanctions a detailed estimate
and necessary funds are allotted.
P –Propriety of the expenditure.
I – Incidence and classification of Charges.
B – Budget Provision.E - (Freedom from) Errors and omissions.
C – Competency of Sanction.
Checks on Estimates - PIBEC
04/15/2023 16
Schedule of Powers
Detailing powers
delegated to officers.
Inter-alia delegations of powers to GM
as received from Railway
Board.
Thorough review of existing
financial powers and further
delegations for quick decision
making.
Divided into six parts
barring part-G.
04/15/2023 17
Schedule of Powers
Part-A- Works
Part B - Medical
Part C - Miscellaneous
Part D - Stores
Part E - Commercial
Part F - Establishment
04/15/202318
Schedule of Powers
Delegation is grouped under three headings.
a) PHOD/HODB)
DRM/ADRM/SAG Officers in
field units
(c) Divisional/Extra
divisional officers and
officers in HQs.
04/15/202319
Schedule of Powers
No re-delegation is permissible unless
specifically authorized.
04/15/2023 20
Schedule of Powers
Powers delegated shall be exercised only by the authority
indicated and to the extent specified.
Subject to existing code rules and other extant orders, due regard to canons of financial propriety.
Subject to availability of funds.