ACCOUNTS INSPECTIONS AUDIT INSPECTIONS ACCOUNTS INSPECTION OF EXECUTIVE

ACCOUNTS INSPECTIONS AUDIT INSPECTIONS

ACCOUNTS INSPECTION OF EXECUTIVE OFFICES Chapter 17 of A-1 WHY? VERIFY THE RECORDS KEPT EITH EXECS. • TO ENSURE THAT ALL RETURNS SENT TO ACCOUNTS ARE BASED ON CORRECT BASIC RECORDS. • IN ACCORDANCE WITH INSPECTION PROGRAMME. • DRAWN IN ADVANCE. (1712 of A-1) • INFORM THE EXEC. (1713 of A-1) • INFORMATION TO AUDIT

WHY ACCOUNTS INSPECTION • VERIFY DOCUMENTS IN SITU. • ORIGINAL RECORDS KEPT IN EXEC. OFFICE. • VERIFICATION OF SYSTEMS.

GUIDELINES FOR INSPECTION Para 1714 of A-1 • VERIFY THAT RETURNS SENT TO ACCOUNTS TALLY WITH THE BASIC RECORDS. • A TEST CHECK OF BASIC RECORDS. • REVIEW OF THE PROCEDURE.

Periodicity of Inspection Para 1704 of A-1 • • Material at site of works Stores as Imprest Tools & Plants Material and Depot – A category – B category – C category – D category Once a year Once in 2 years Once in 3 years Once in 6 months Once in 1 year Once in 2 years Once in 1 year

• Inspection of Divisional Offices • Engineering Department • First Inspection of – Construction office Once in 2 years Once a year Within 3 months • All subdivisions should be inspected at least once in 2 years.

Inspectorial Staff • Inspection of Stores • Inspection of Station • Inspection of Officers ISA, SV TIA SO’s

INSPECTION REPORTS. • AFTER THE INSPECTION IS OVER. • INCLUDES ALL ITEMS WHICH HAVE NOT BEEN SATISFACTORILY BEEN EXPLAINED DURING INSPECTION. CONSISTS OF TWO PARTS • PART I • ITEMS OF MAJOR OBJECTIONS. • PART II • ITEMS OF MINOR OBJECTIONS

PART I PREPARED IN QUADRIPLATE 3 COPIES SENT TO THE EXEC. OFFICE SUPERIOR TO THE ONE INSPECTED REPLY FORWARDED BY SUPERIOR TO ACCOUNTS OFFICE 2 COPIES SENT TO THE ACCOUNTS OFFICE INSPECTED REPLY GIVEN BY THE OFFICE

PART II PREPARED IN DUPLICATE ONE COPY SENT TO THE EXECUTIVE OFFICE REMARKS OF THE EXECUTIVE

STATUTORY AUDIT Chapter 9 of F-1 • ARTICLE 149 TO 151 OF INDIAN CONSTITUTION. • CAG RESPONSIBLE FOR AUDIT NOT FOR COMPILATION OF ACCOUNTS. • HE HOWEVER CONCURS WITH THE FORM/CLASSIFICATION OF ACCOUNTS. • ALL CORRESPONDENCE THROUGH ACCOUNTS

ORGANISATION CAG PRINCIPAL DIRECTOR(RLY) PRINCIPAL DIRECTOR (ONE IN EACH RAILWAY DEPUTY DIRECTOR AUDIT OFFICERS IN THE DIVISIONS/WORKSHOPS

OBJECTS OF AUDIT • TO ENSURE THAT • SYSTEM OF ACCOUNTS IS CORRECT. • METHOD OF INTERNAL CHECK IS SUFFICIENT. • CHECKS ARE ACCURATE • RAILWAYS FINANCIAL INTERESTS ARE PRESERVED. • ALL RULES ARE BEING FOLLOWED. ENSURED BY • PERCENTAGE CHECK, ON THE SPOT INSPECTION ETC.

COMMUNICATION OF OBJECTIONS • AUDIT NOTES ---- Deals with the monthly test audits. • PART I CLOSED BY AUDIT • PART II CLOSED BY ACCOUNTS • AUDIT INSPECTION REPORTS • PART I CLOSED BY AUDIT • PART II CLOSED BY ACCOUNTS • SPECIAL LETTERS • DRAFT PARAS AUDIT PARAS

HOW TO DEAL DRAFT PARAS • ISSUED BY DA OF THE RAILWAY. • TO BE REPLIED BY RAILWAY WITHIN 8 WEEKS. • REPLY BY EXECUTIVE, CONCURRENCE OF ACCOUNTS AND APPROVAL OF G. M. • IF AUDIT IS SATISFIED THEN DP IS CLOSED ELSE IT IS INCLUDED IN THE CAG’s REPORT TO PARLIAMENT AS AUDIT PARA. • ACTION TAKEN REPORT IS TO BE GIVEN FOR EACH AUDIT PARA

REPORT MADE BY AUDIT IF PART II THEN A/C WILL CLOSE IT ELSE SEND TO AUDIT FOR CLOSURE SENT TO A/C OFFICE SENDS TO EXEC. TRI PARTITE MEETING SENT TO ACCOUNTS REPLY PREPARED BY EXEC.

• CAG every year publishes a report on the working of the Railways. Some of the cases pointed in the Audit Report of 1998 are discussed where nonobservance of some technical details and financia implications lead to loss to the Railways. • ROB constructed at a cost of Rs. 50 Lakhs lying unused as the approach road was not constructed by the State Government. • Freight terminal facilities constructed at a cost of Rs. 6. 5 crores unused

Two private sidings were constructed costing Rs. 93 Lakhs and 88 Lakhs from Railway Funds. Delay in issuing of instructions by Rly. Bd. Lead to a loss of Rs. 5. 20 Crores. This could have been avoided had there been a termination/ short closure clause due to change in input quantities. New substation constructed in July 1993 at a cost of Rs. 2. 02 crores but