COMPLETION REPORT AND STATEMENT OF RAILWAY PROJECTS Estimate

COMPLETION REPORT AND STATEMENT OF RAILWAY PROJECTS Estimate of Junction Arrangement (Engg. Code Ch. XVII )

What is an Estimate? • • Is a projection of quantity and the detailed cost based on experience and/ or information available at the time of estimation for each activity in a work. The total expected cost of a project includes not only material and lobour but also equipment, tools, management and overheads. It is based on construction plans, specifications, project manuals, scope of work and other related data, Determines project feasibility and set budgets for financial planning.

NEED FOR AN ESTIMATE • • • To know probable cost of work proposed. To examine whether the work is financially justified or not. To obtain administrative approval and technical sanction from competent authority. To work out material schedule. If cost exceeds limit, then to take the sanction for revised cost. To get the funds available to execute the work. To prepare bar chart based upon quantity of items so that progress of work can be monitored. To work out completion periods of individual activity as well as that of whole work. To work out and arrange various types & no. of labour required for specified work & time.

PREPARATION OF ESTIMATE WILL NOT BE APPLY TO FOLLOWING CASES 1) For the category of new minor works if estimated cost upto Rs. 50, 000/2) chargeable to OLWR as a new minor work if estimated to cost Rs. 50, 000/3) estimated to cost Rs. 50, 000/4) estimated to cost up to Rs. 2 lakh. 5) Rs. 1 Lakh, and any repair work chargeable to Revenue costing upto Rs. 5. 00 lakh 4

TYPES OF ESTIMATES. • ABSTRACT ESTIMATES. • DETAILED ESTIMATES. • SUPPLEMENTARY ESISMATES. • REVISED ESTIMATES. • PROJECT ABSTRACT ESTIMATE. • CONSTRUCTION ESTIMATES. • COMPLETION ESTIMATES. 5

DETAILED ESTIMATE. (E-704) • Prepared after getting administrative approval • Prepared in sufficient details. • Required for technical sanction of competent authority. • No work included in an abstract estimate should be commenced till detailed estimate is prepared and sanctioned and funds allotted by C. A. • Necessary for preparing tender & contract documents. • Work can only be executed after sanction of detailed estimate. 6

TECHNICAL SANCTION • The sanction accorded by CA to the detailed estimate of a work is known as technical sanction. • Before according TS the CA should satisfy itself that • The details of the scheme as worked out are satisfactory. • The methods proposed for the execution of the work are adequate; and • The cost has been estimated from reliable data and is likely to be reasonably accurate. 7

REVISED ESTIMATE. (E-708) • If expenditure is likely to be exceeded in the sanctioned detailed estimate then R. E. is prepared. • R. E. is not required if : 1) estimated cost exceeds up to 20% due to variation in quantities of items or new item, 2) estimated cost exceeds up to 100% due to escalation. • Revised Estimate Should be got sanctioned by C. A. Who sanctioned main estimate unless otherwise financial limits of C. A. Has been exceeded. 8

COMPLETION ESTIMATE. (E-713) • Prepared in super session of a construction estimate and includes : • Amount of sanctioned estimate. • Actual expenditure on all works. • Commitments on date. • Anticipated further outlay. • Total estimated cost. • Diff. between the sanctioned estimate and the completion cost.

ESTIMATES OF DEPOSIT WORKS • Deposit Works- execution of works for and at the cost of other Govt. deptts, local bodies, private persons etc. are termed as Deposit Works. • To meet the cost of plans and estimates of such works as also those to be carried out for other departments out of railway funds departmental charges at prescribed rates are to be levied. (for works costing over Rs. 1 lakh- 2%) min. Rs. 2000/ • All estimates of DW should be got accepted by the parties ordering the works before submitting for sanction to the C. A and work to be started only on getting the sanction and deposition of estimated cost to railways. 10

759. Register of Estimates. - All estimates should, before they are submitted for accounts verification or for the sanction of the competent authorities, be registered in the office of origin. For this purpose a register in the following from should be kept. . . . . RAILWAY REGISTER OF ESTIMATES Department. . . . . Office. . . . . Station. . . S. No. Estimate Name of Plan File Estimated Chargeable to No. work No. cost Capital D. F. DRF OLWR Ordy. revenue Deposit 1 2 3 4 5 6 7 8 9 10 11 12 Misc. fund 13 Accounts verification Date of return Date of submission after sanction to accounts verification 14 15 16 Authority sanctioning the estimate 17 Ref. to sanction No. & Reference to folio Remarks as to date in the Register of completion of Work work 18 19 20

VETTING OF ESTIMATES • In order to monitor control over expenditure, regular checks are being exercised by Accounts officer on all the estimates before sanction of C. A • The object of such preliminary checks are to avoid irregular sanction to expenditure • The main points of consideration are • The propriety of the expenditure • The incidence and classification of charges • Existence of budget provision during F. Y • Freedom from errors and omissions and • Competency of sanction

Basics of Budget

FINANCE • • The science of the management of money and other assets. The management of money, banking, investments, and credit. Finances Monetary resources; funds, especially those of a government or corporate body. The supplying of funds or capital. Railway Budget • Demands for Grants: The proposal of Govt. in respect of sums required to meet the expenditure from the Consolidated Fund of India submitted to the Parliament.

DEMANDS • Demand of Grants: (Para: 625 of Engg. Code & Para. 305 of Fin. Code Vol. - I) • The demand should represent a homogeneous activity controlled by a single departmental authority; • The Demand should equally correlate costs to results duly bringing out the variable and fixed items of costs, to the extent possible; and • The Demand should be equally balanced from the point of view of total expenditure. The above considerations could not be fully met due to certain practical restrictions. • Demands for Grants: The proposal of Govt. in respect of sums required to meet the expenditure from the Consolidated Fund of India submitted to the Parliament.

GROUP NO. and DEMANDS I Policy Formulations and services common to all Railways 1 Railway Board 2 Miscellaneous expenditure(General) II General Superintendence and services on Railways 3 General Superintendence and service on Railways III Repairs 4 5 6 7 and Maintenance Repairs and Maintenance of Way & Works Repairs and Maintenance of Motive Power Repairs and maintenance carriage & Wagons Repairs and Maintenance Plant and equipment VII Works expenditure 16 Assets Acquisition construction and replacement

Demand No. 4: Repairs and Maintenance of permanent way and Works: This grant covers expenditure on repairs and maintenance of permanent way assets such as track, other building and structures, as detailed in abstract B. The credits under this grant are for materials released from works charged to revenue and share of freight charges of Railway materials.

Demand No. 16 : Assets : Acquisition, construction and replacement: This grant is otherwise known as "Works Grant". This grant caters to the expenditure on acquisition of new assets, construction of new lines, replacements and renewals of the existing assets. The finances for these assets are met either through "Capital" otherwise known as loans obtained from the General Exchequer or internal resources of Railway system namely the Depreciation, Reserve fund, Development fund and capital fund.

Budget- Revenue & Capital (Works) • Revenue Budget ØFor maintenance and operation of services ØShort term, the benefit of which is within the Financial Year Works Expenditure Demand no 1 to 15 • Capital Budget ØNew Assets/Replacement ØWorks Programme, M&P and RSP, the benefit of which lasts for many years and may result in increase in earnings and/or reduce expenditure for many years ØDemand no 16 -Assets- acquisition, construction and replacement • Works Budget: ( Para: 624 of Engg. Code) ØThe revised and Budget estimate for construction, acquisition and replacement of assets are briefly known as Works Budget. (based on Works Programme approved by Rly. Bd. )

1705 : Project completion Report • Completion report is prepared to compare the cost of work actually constructed with those provided in the last sanctioned estimate. • The completion report of project duly verified by Accounts officer in accordance with para 1712 should be submitted to Rly. Bd with in 18 months after the end of financial half year in which the completion estimate is submitted. • It should state the expenditure in same detail as the abstract estimate sanctioned by the Rly Bd and should indicate any material modification thereto. COMPLETION REPORT FOR THE WORK. . . (in form E 1706) Particular Heads of Account and Description of works Amount of Estimate with reference to authority for sanction Actual Expenditure Difference Excess Remarks & Explanations Saving

1708. Completion of Works. • In General , work should be considered as completed when it fulfils the purpose for which it when sanctioned, was intended, and when there has been no expenditure thereon for three months thereafter. • All outstanding debits and credits pertaining to a completed work should as a rule be adjusted in the account of the work within three months of the date of completion. • The accounts of a completed work should be closed six months after the date of completion and a completion report of the work drawn.

1712. Accounts Verification of Completion Reports. • Completion Reports checked in the Accounts Office to see that they have been prepared in the proper form and that the entries therein correspond with the particulars of the sanction and booked outlay. • Special Attention should be devoted to the following points. • (a) Checking the correctness of postings of a. II final bills relating to a work in the account of the work; • (b) test-checking the correctness of a percentage of other items • (c) seeing that satisfactory explanations are forthcoming for excesses and savings in the account; • (d) seeing that all materials charged to the work or works; but not used up, have been returned to stores or transferred elsewhere and. the account of the work credited with their value; • (e) seeing that credit for the released materials. provided for in the estimate has been adjusted against the work concerned. • All completion reports should be "verified" by the Accounts Officer as correct. The verification certificate of the Accounts Officer should state the authority competent to sanction the outlay shown in the report.

1713 Completion Reports of Unfinished Works • If for any reason a work on which expenditure incurred is stopped, and if there is no reasonable prospect of completing it in near future, the account of the work should, be closed as in the case of a completed work, and a completion report drawn and submitted to the authority which accorded the administrative approval to the work, for information.

1714. Completion Statements • As a general rule, completion report should be submitted in respect of each completed work. • Form E. 1714 Reference to estimate. Amount of sanctioned estimate. Actual expenditure as finally booked. Brief explanation of excess or saving. 1715. Expeditious Closing of Accounts of Works. • The account of a work costing rupees one crore and less should not kept open beyond three months of the date of its completion. Efforts should be made to bring to account ail liabilities and credits pertaining to the work by liquidating the former and realising the latter within that period.

1716. Entry in the Register of Works. • When a work is completed and its accounts closed a double red ink line should be ruled below the last entry in the Register of Works and a note made as under : • Work completed. • Completion report submitted on. . . E 712. Estimate of Junction Arrangements. • Except where the new line is of a different gauge and has entirely its own arrangements, the estimate for the junction arrangements should be prepared in consultation with the open line administration of the connecting system, and a separate abstract estimate of the cost of the additions and alterations necessary for effecting the junction should be appended to the construction estimate.

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