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

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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.

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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.

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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

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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.

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Schedule of Powers

Part-A- Works

Part B - Medical

Part C - Miscellaneous

Part D - Stores

Part E - Commercial

Part F - Establishment

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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.

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Schedule of Powers

No re-delegation is permissible unless

specifically authorized.

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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.