Defence Accounts Department - PCDA, New Delhi · 3 CONTENTS CHAPTER PAGE I. General 4 II. Record...

Defence Accounts Department

OFFICE MANUAL [C.D.A (HQRS.) MANUAL]

PART XII 1994 EDITION

2

PREFACE

1. This Manual contains instructions and procedure for the conduct and

disposal of the work dealt with in the various sections of the office of the Controller of Defence Accounts (HQrs), New Delhi.

2. This Manual is a departmental publication. The instructions contained therein are supplementary to the rules in the Civil and defence Audit and Account Codes, Civil Service Regulations, Pay and Allowances Regulations, Pension and Financial Regulations etc. They are intended for the guidance of officers and staff of the Department and should not be quoted in correspondence with offices outside the Department.

3. Nothing in this Manual will be held to supersede any standing rule or order of the Government of India with which it may be at variance. Any additions or alterations which may be necessary to the Manual will be notified periodically by the C.D.A (HQrs), New Delhi with the previous approval of the C.G.D.A. No change which involves a substantial departure from the basic principles and the urlses of Audit should be introduced without the previous approval of the C.G.D.A.

New Delhi S.A.VENKATARAYAN, Date: 6-5-94 Controller General of Defence Accounts

3

CONTENTS

CHAPTER PAGE

I. General 4 II. Record Section 6 III. Administration Section including pay section 7 IV. Accounts Section 8 V. Disbursement Section 9 VI. Foreign Payment Section 10 VII. Licence Fee Section 27 VIII. Miscellaneous Section 32 IX. Transportation /LTC Section 33 X. Fund Review Section 34 XI. Pay Section including pay Tech Section 35 XII. Store Contract Section including RCPO Section 36 XIII. A.P.O.Section 47 XIV. AO (DAD) 56

4

CHAPTER I

GENERAL Main Duties

1. The main duties of the CDA (HQrs.) are:- i. to ensure pre-audit , payment and accounts of all transactions relating

to Pay and Allowance of Defence Civilians and Officers of Armed Forces HQrs. Service and also Inter Service Organisations located at Delhi.

ii. to provide necessary accounting , financial and internal audit

information and support to the CAO , Ministry of Defence , Service HQrs. and Inter Service Organisations authorities located at Delhi to help them in the discharge of their management functions.

iii. to ensure proper and correct maintenance of fund accounts of Defence Civilians/ Officers of AFHQ Service /Inter Services Organisation and that of Ministry of Defence and Defence finance Secretariat Staff.

iv. to carry out the functions of internal audit and also to work as DDO in respect of Ministry of Defence and Defence finance in its entirety.

v. to ensure payments relating to TA /DA, LTC , contingent and Miscellaneous claims in respect of Defence Civilians /Officers of AFHQ Service and Inter Service Organisations.

vi. to ensure payment of dues in respect of Licence Fee for the houses /flats hired by CAO &Jt. Secretary Min. of Defence for Defence Service officers working in Delhi area.

vii. to make necessary payment of dues relating to foreign contracts and supplies made towards contracts concluded by Ministry of Defence with Foreign Government and also by Service HQrs. with foreign firms under delegated powers.

viii. to scrutinize supply orders and to pay bills relating to contracts concluded by Deptt. of Defence Supplies/RCPO in respect of Defence Services and others and also to ensure proper accounting of these transactions in the Defence Service Estimates.

ix. to ensure payment relating to Secret Services of Cabinet Secretariat and also accounting of expenditures of the Defence Estimates in respect of vouchers floated by controller of Accounts , Deptt., of Supply (DGS&D) in respect of contracts concluded by DGS&D on behalf of Defence Services . For this purpose CDA (HQrs.) has been appointed as “NODAL CDA” by the CGDA for accounting of these transactions in the books of Defence Services Estimates.

Sections of CDA (HQrs.)

2. The Office of the CDA (HQrs.) is divided into following sections: -

5

i. General ii. Record Section iii. Administration Section including pay Section iv. Accounts Section v. Disbursement Section vi. Foreign Payment Section vii. Licence Fees Section viii. Miscellaneous Section ix. Transportation /LTC Section x. Fund Review Section xi. Pay section including pay Tech section xii. Store Contract including RCPO Section xiii. A.P.O. Section xiv. AO (DAD)

3 to 5 BLANK

6

CHAPTER II

RECORD SECTION

6.The conduct and disposal of work dealt with in the Record Section will generally be the same as laid down in Chapter I of Office Manual part II, Vol I.

7

CHAPTER III

ADMINISTRATION SECTION INCLUDING PAY SECTION

7 .The conduct and disposal of work dealt with in the Administration Section will generally be the same as laid down in Chapter II of Office Manual Part II Vol. I.

8

CHAPTER IV

ACCOUNTS SECTION

8. The conduct and disposal of work dealt with in the Accounts Section will generally be the same as laid down in Chapter III of Office Manual part II, Vol. I.

9

CHAPTER V

DISBURSEMENT SECTION

9. The conduct and disposal of work dealt with in the Disbursement Section will generally be the same as laid down in Chapter IV of Office Manual Part II Vol. I.

10

CHAPTER VI FOREIGN PAYMENT SECTION

Objectives

10. The objectives of this section are to ensure timely payment for the stores procured from foreign counties, as well as to discharge the committed liability with the foreign Governments /firms relating to credit agreements and to have a proper liaison with Ministry of Defence and Defence (Finance ) and all the Service HQrs. in regard to the above transactions so that any discrepancy can be sorted out by discussions across the table and if need be by having liaison with the authorities concerned including SBI and RBI, New Delhi for ensuring speedy and timely payment in regard to foreign contracts. Duties

11. The duties of this section are:- i. To scrutinize the contracts concluded by Ministry of Defence as well as

by Service Headquarters under delegated powers with foreign Governments /Firms.

ii. To make payment towards stores procured from abroad for Defence Services both in Fee Foreign Exchange (FFE) and Non Convertible Rupees (NCR).

The role of CDA (HQrs.) in regard to the above transactions commences only after the receipt of ink signed copy of contract agreement /purchase orders and when payments are due to the supplier, CDA (HQrs) is not associated with various stages relating to placing of indents, scrutiny and allocation of indents, scrutiny of tenders received based on indents, tender inquiry of negotiations, pricing and while drafting payment procedure etc. After an agreement is signed/contract/purchase order is issued, a copy of the same is sent to the CDA (HQrs.) duly singed in ink which acts as a basic document for purpose of making payment. Types of contracts

12. Thers are two types of contracts :- i. Cash and carry contracts. ii. Credit and Defence payment contracts.

Procedure followed regard to payment of stores procured by service

from abroad /foreign countries.

11

13. Agreements for the procurement of Ordnance Stores, arms /ammunition. AF and Naval stores etc. are concluded with foreign Govt. / firms in foreign countries by the Government of India, Ministry of Defence. Payments against these contracts in the form of Advance, deferred installments and final payment or interest due , are made by the CDA (HQrs.), New Delhi on the authority of letters issued by the Ministry of Defence or Services HQrs. as the case may be in consultation with Ministry of Defence (Finance Division). Scrutiny of the contract concluded by Ministry of Defence /Service

Hqrs.

14. On receipt of contract concluded by Ministry of Defence/Service HQrs., the same will be scrutinised to ensure that all the information that is required for releasing payments are incorporated in the contract. The points to be seen while scrutinising the contract are shown in Annexure ‘H’ to this manual. Points to be seen in audit while authorising payment.

15. The following checks will be exercised before payments are arranged to the Government/firms in foreign countries by the CDA (HQrs.), New Delhi.

a. On receipt of the payment authorisation from the Ministry of Defence/Service, HQrs., it will be seen that it relates to the contract being dealt with by the CDA (HQrs.), New Delhi.

b. It will be ensured that the payment authorisation has been signed in ink and the signature of the officer who has signed the authorisation letter agrees with the specimen signature held on record. If the specimen signature is not held, a set of signatures duly attested will be called for and receipt watched. In the meanwhile, to avoid delay and consequential complications, the payment may be made provisionally after ensuring the bonafied and genuineness of the payment authorisation.

c. It will be ensured that payment, authorisation indicates that necessary foreign exchange has been released and the commitment has been noted by DFA/Director of Budget, Ministry of Defence (Fin. Budget).

d. It will be ensured that all contracts/agreements have been received from the Administrative authorities, in case where it is specifically indicated in the forwarding note that the contracts have been concluded with the prior approval of the Ministry of Defence and Ministry of Defence(Finance) both from the expenditure and foreign exchange angle duly quoting their UO No.

e. It will be ensured that in cases where there are specific provisions in the Contract which provides for price escalation and overall ceiling as escalation has been given at the time of concluding contract, such

12

escalation are authorised without further sanction from the Ministries. In cases where price escalations are provided in general terms and the exact quantum of escalations is not known or available at the time of concluding the contracts, authorisation for payment of such escalations should be issued with prior concurrence of Ministry of Defence (Fin.).

Cash and carry contracts – Audit Checks

16. In addition to the above audit checks, the following checks will be exercised:-

a. That the original invoices duly authenticated by the Ministry of Defence/Service HQrs. and supported specification certificates, certificates of quality, bill of lading and Insurance policy (where provided for in the Agreement) have been received. Where it has not been possible to obtain and enclose a copy each of the bill of lading and Insurance Policy from the supplier and furnish them to the CDA, the number and date of the Bill of Lading should be indicated in the invoices duly certified by the Officer authorised to do so in the Ministry of Defence/Service HQrs. and the fact of Insurance coverage also should be indicated in the invoices.

b. That the items and quantities listed in the specifications certificates are the same as contracted for.

c. That the total amount claimed is correct with reference to cost per unit as per contracts and the discounts have been allowed wherever provided for in the contract.

Advance payments

17. In cases where advance payments are authorised, it will be ensured that the amount authorised for payment is according to the provisions of the contracts. Receipt of relative invoice for advance payment made will be watched and in case of non-receipt thereof within a reasonable time, the matter will be reported to Ministry of Defence/ Service HQrs. for suitable action. Deferred payment/Instalment payments

18. Deferred payment contracts are of two types as mentioned below: i. In respect of certain contracts, a prescribed percentage as stipulated

in the contract of the value of each delivery of the equipment is paid on presentation of invoice. The balance cost of the equipment is paid in annual or half yearly installments along with the interest there on as per the conditions of the contract.

13

a. The audit checks prescribed above for cash and carry contracts will also be exercised in such deferred payment contracts while making initial percentage payment on presentation of the invoices.

b. The particulars of these invoices will be noted in the Deferred payment Register No. 1 (as per proforma in Annexure-A) to facilitate the check of installmental payment being made subsequently. The Fly Leaf Instructions for maintenance of the Register are given in Annexure-B.

c. While making the balance installment payments, it will be ensured that claim is accompanied by relevant payment schedule and that the relevant invoices relating to the initial payment made corresponding to the installment payment being claimed has/have been received. The amount of installment payment due on a particular date as shown in the payment schedule will be checked with reference to the invoice particulars relating to initial payments recorded in the Deferred Payment Register No. I and the terms of the contracts relating to the Deferred Payment.

ii. In respect of certain other Deferred contracts, a prescribed percentage as stipulated in the contract of the total amount of the contract/additional agreement thereto is paid within a certain period from the date of signing of the contract/additional agreement. The remaining amount of the total value of the contract/ additional agreement is paid in annual/half yearly installments as per the conditions of the contract. In such contracts the stores are to be delivered within a certain period as stipulated in the agreements. a. No payment is effected against the invoices/specification certificates

received showing value of stores delivered. However, it will be checked from the invoices received that the supply of stores has been fully completed by the delivery dates indicated in the contract agreement. If not, matter will be reported to Ministry of Defence/Service HQrs. concerned.

b. Deferred Payment Register No. II as per proforma in Annexure (‘C’) will be maintained to record the advance payment and the subsequent installment payments made as per the agreement. The Fly Leaf Instructions for maintenance of the Register are given in Annexure ‘D’.

Payment of interest

19. The statement showing working details for interest charges as furnished by the foreign bank/firm is forwarded periodically by Ministry of Defence/Service HQrs. for confirming its correctness. Interest Charges for the preceeding year/half year are authorised as and when according to the terms of agreement.

14

The correctness of the amount of interest charges as worked out in the interest schedules, received, will be checked with reference to the details recorded in the Deferred Payment Register No. I or II regarding date of receipt of stores as per the Bill of Lading received alongwith the invoices/specification certificates. If the schedules in respect of payment authorised have not been received, the same will be called for immediately and its receipt watched through the Deferred Payment Register No. I or II. The payment authorised will, however, be made and the correctness of the payment will be checked on receipt of the wanting schedule. Payment procedure

20. The payment will be made by RBI/SBI for credit to the particular account to the foreign Bank as per the terms of the contract and the amount of payment will be intimated to the CDA (HQrs.) by the Banks concerned by means of “Debit Advice”. The Debit Advice will show the amount paid in foreign currency vis-a-vis rate of exchange, and the amount in rupees, toward Telex charges, commission charges, amount toward Telex charges, commission charges, amount towards bank charges, transit interest etc. On receipt of Debit Advide CDA (HQrs.) will call for the invoices “in respect of Letter of Credit Cases” from the Service HQrs. for scheduling the same to the consignee CDA. The Debit Advices should be checked, to ensure particularly that the rate of Exchange adopted is correct. The amount is compiled by preparing a Punching Medium to the respective expenditure Head of Account as indicated in the sanction letter. In respect of bank transfer cases also the adjustment will be carried out as per the debit advices received from the RBI/SBI on the same advices as above. Where payment has to be made through Letter of Credit action to open letter of credit in favour of named party will be taken immediately on receipt of requisite Govt. sanction/authorisation letter and after verification of release of foreign exchange by the Ministry of Defence (Fin.). A letter of credit is to be opened in accordance with the contents of the Govt. sanction/authorisation letter and payment terms of the contract agreement. Supplementary agreement/additional agreement

21. The authorisation of the Letter of Credit will be forwarded to the RBI/SBI alongwith the following document in triplicate:-

i. Terms and conditions of the Letter of Credit as a separate Annexure.

15

ii. Extract of the payment terms of the contracts/supply order. iii. An application and guarantee for Letter of Credit on Form A-1, A-

2 and Form No. 2 duly completed. iv. Details of items and quantities contracted for which payment is

to be made through L/C as a separate Annexure. Bank will be instructed to ensure regulating payments for items and quantities actually supplied.

v. Any further stipulations/conditions to be included in L/C to ensure interests of the state.

No Cheque for the value of the Letter of Credit is to be issued to the SBI/RBI. A request for amending of extending letters of credit received through Govt. sanction/authorisation letter will also be actioned as above and incidence of expenditure due to such amendment/extension is to be passed on to the correct party i.e. buyer or seller according to the terms of the contract. A register of Letter of Credit as per Annexure ‘E’ will be maintained by the CDA (HQrs.) for timely action as above and effective follow up action. Fly leaf instructions for the register is given in Annexure ‘F’. Receipt of payees for payments made will be watched from foreign bank through SBI/RBI. 22. CDA (HQrs.) will render a monthly statement of expenditure to Army HQrs./Other Service HQrs. in the following format by 10th of the following month:- Sl. No.

Contract No. and date

Letter of Credit NO. if any

Name of the country

Reference to the MGO/PP-4 letter No. & Date

Code Head to which compiled

Amt. Complied

1 2 3 4 5 6 7

The Deferred Payment Registers will be submitted to G.O for review at the end of each month. Scheduling of invoices

23. Specification certificates attached with the invoice giving details of stores supplied, received from Ministry of Defence/Service HQrs. will be scheduled to concerned CsDA of the consignee unit/depots after entering the

16

particulars of invoices/specification certificates in the scheduling register (Proforma at Annexure ‘G’) for credit verification through concerned CsDA. Checking of compilation and rendition of report of Ministry of

Defence (Finance)

24. After the sectional compilation of particular month is received, the amount compiled in the sectional compilation will be checked with the punching medium register (both clause I, II etc.) and will be ensured that all the punching media floated by Foreign Payment Section have correctly been compiled to the respective Code Heads and there is no discrepancy. After ensuring this, the statement of expenditure, will be prepared service-wise both for FFE and NCR payments and rendered to CGDA/DFA (Budget)/Deptt. of Economic Affairs, Ministry of Defence/RCPO (as per Annexure I). Flow chart showing how letter of credit is opened

25. Flow chat is given at Annexure ‘J’ to this chapter. Check List

26. A check list prepared for dealing with foreign payment cases by Service HQrs. before they are transmitted to CDA (HQrs.) for authorising payment is given in Annexure ‘H’ to this Chapter. Indian Supply Wing Contracts

27. A separate group to deal with ISW contracts has been formed in CDA (HQrs.) in Foreign Payment Section. This group will deal with the payments relating to contracts/supply orders/purchase orders concluded/placed by the various authorities at Service HQrs. for procurement of store from commercial firms abroad ex. UK and West European countries and powers delegated to then by Government of India. Ministry of Defence, letter dated, 24-9-84 as amended from time to time.

a. Indents are classified into three types depending upon the value of stores to be procured viz.

i. procurements in respect of cases whose value is Rs. 10 lakhs

and above in which cases the procurement is made after the normal procedure is followed including approval of Tender Purchase Committee through Air Officer Maintenance. In these cases the expenditure sanction as well as sanction for release of FFE are accorded by Ministry of Defence (Finance).

17

ii. In cases of procurement where value is above Rs. 1 lakh but below Rs. 10 lakhs the purchases are made under delegated powers by the Service HQrs. after receiving financial concurrence from expenditure angle as well as releasing FFE before the indents are actually placed.

iii. In some procurements in respect of cases whose value is upto Rs. 1 lac, the sanction for release of FFE is only accorded by Ministry of Defence (Finance) and contracts are concluded by the Directorate of Purchase of the services.

b. Procurement of stores from abroad relating to cases whose value is Rs.

10 lacs and above, the procurement is made after normal procedure is followed including approval of the Tender Purchase Committee. In these cases, the expenditure sanctioned as well as sanction for release of FFE are accorded by Ministry of Defence (Finance).

c. In regard to cases relating to procurement whose value is above Rs. 1 lac but below Rs. 10 lacs, the purchases are made under delegated powers by Service HQrs. However, in regard to such indent, financial concurrence from expenditure and as well as FFE is also obtained before the actual indents are placed.

d. As regards puchase orders whose value is upto Rs. 2 lac, sanction for release of FFE is only accorded by Ministry of Defence (Finance) and contacts are included by Director of Purchase/Joint Dorectore of purchase as the case may be depending upon the value of the stores procured.

e. In respect of the cases referred to at para (c) and (d) above, sanctions issued by Service HQrs. are to be audited in accordance with the provisions of Chapter 10 read with Para 25 of Defence Audit Code. However, the audit is restricted in ensuring that the sanction accorded by the competent authority is well within his financial powers and the FFE has been released by Ministry of Defence (Finance). CDA (HQrs.) is not required to look into the necessity for procurement as the indents are placed only after necessity is established by user in consultation with the respective Technical authorities of Ministry of Defence etc.

28 to 30 BLANK

ANNEXURE ‘A’ (Referred to in Para 18)

DEFERRED PAYMENT REGISTER NO. I Addl. Contract Nos.

1. Contract No. & Date:

18

2. Total value of Contract: 3. Amount payable against delivery of stores. 4. Amount payable in installments. 5. No. of installments. 6. Due date of Installments.

No. & Date of Min. of Def./ Service HQ. payment authorisation.

No.& date of Invoices payment schedules

No & Date of letter under which wanting invoices/ payment schedules called for

Amount of Invoices

Bill of Lading No. & Date

Insurance Policy No.

Amount paid against delivery of stores.

1 2 3 4 5 6 7

Instalmental payment made

No. of Instalm-ents

Progressive total of payments made so far

Amount of interest paid

D.V. / T.E. No. & Date

Initial of supdt.

Initial of Officer

Remarks

8 9 10 11 12 13 14 15

ANNEXURE “B”

(Referred to in Para 18) Fly Leaf instructions for the maintenance of deferred Payments Register No. ……………………....... Object: For the purpose of ensuring that instalment payments due under Deferred payment contract and interest thereof are authorised by due date. How to maintain register

1. The register will be maintained on the performa attached. 2. Separate stocks of payment against supply will be opened for each

contract and particulars as contract and particulars such as contrat No. and Date Addl. Contract Nos. total value of contract, Amount payable

19

against delivery of stores and amount payable in instalments with No. of instalments will be completed as soon as a deferred payment contract is received.

3. The other columns of the register will be completed after payment is effected.

4. In cases where the invoices/schedules of payment are wanting but the payment of the instalment or the interest has to be made with reference to No. and date of Minstry of Defence/Service HQ authorisation letter these may be called for. The column 2 should indicate the No. and date of letter under which the invoices/payment schedules have been called for. On receipt of these invoices these invoices these should be recorded.

5. The payment against delivery of stores should be recorded in column 7 which should be based on the prescribed percentage of amount of invoices recorded in column 8, in accordance with terms of contract. The total amount delivery of stores is to be made, should be struck and recorded in red ink in the same column to faciltate subsequent instalment payment to be made.

Submission of register

1. The register will be submitted to Officer-in-charge as and when the payment is recorded in the register along with other documents for his initial.

2. This register will be submitted to the Group Officer monthly.

ANNEXURE. “C” (Referred to in para 18)

Deferred Payment Register No. II Addl. Contract Nos.

1. Contract No. & Date: 2. Total value of Contract: 3. Amount payable in advance. 4. Amount payable in instalments. 5. No. of instalments. 6. Due date of Instalments.

No. & Date of Min. of Def/Service HQ authorisation.

No. & Date of Invoices/ schedules of payments

No & Date of letter under which wanting invoices/schedules of payments called for

Amount of advance payment made

Bill of Lading No. & Date

Insurance Policy No.

Total value of supplies received

20

1 2 3 4 5 6 7

Instalmental payments made

No. of Instalments

Progressive total of payments made so far

Amount of interest paid

D.V./T.E. No. & date

Initial of suppdt.

Initial of Officer

Remarks

8 9 10 11 12 13 14 15

ANNEXURE “D” (Referred to in Para 18)

Fly Leaf Instruction for the maintenance of deferred payment register No. II

1. The instructions for maintenance and the periodicity for submission of

the Register to the Officer-in-Charge and G.O. are the same as laid down for maintenance of Register No. I (Except for column 7).

2. This register is to be maintained as per the proforma given in Annexure ‘C’.

3. As advance payment has to be made in accordance with the terms of the agreement, and as such the value of stores actualy delivered should be recorded in Column 7 of the register. When the invoices and specifications certificate for actual delivery of stores are received and recorded in column 2, no payment is to be made against such invoices. The register should be reviewed and if the delivery has not been completed by the due date prescribed in the agreement, the matter should be reported to Ministry of Defence/Service Headquarters and further progress in this regard may be watched.

ANNEXURE “E” (Referred to in Para 21)

The letter of Credit Register

Part I (Position of Payment)

Contract No. & date. L/C No. allowted by RBI Authority case file No. Addl. No. viz. Govt. of India letter No. &

21

to contract No. date authorising opening of L/C at Service HQrs. Service HQrs.

Sl. No.

Our letter No. & dt. Advising RBI to open/ amend enhancing value of validity period of the L/C

Amount of letter of credit

Dt. upto which the L/C is valid /dt. Upto which validity is extended

RBI debit advice No. & dt. Debiting the payment

Amount of debit advice

Incidental charges (a)

Adjusted vide class-I Vr. No. & month Bill Amt. (b)

Progressive total of bill total of (a) (b)

Total Amt. of invoices received from service HQrs. against the amount (particulars) of invoice to be indicated in clms of Pt. II.

Initials of AO/ SO(A)

Remarks and action taken to call for the debit advice from Bank while invoice have already been received but the Bank debit advice for the corresponding amount is wanting

1 2 3 4 5 6 7 8 9 10 11

ANNEXURE “E” (Referred to in Para 21)

The letter of Credit Register Part II (Position of Invoices)

Contract No. & date. case file No. Dte concerned Addl. No. to contract No. L/C No. and date at Service HQrs. Service Hqrs.

Sl. No.

Letter No. and date under which invoice is received.

Sl. No. of item in part-I to which the invoice relates.

Invoice No. relate

Value of Invoice(a)

Amt. debitable to service HQrs. A/C (b)

Amount to be received from ARC (c)

Party to whom scheduled.

Page No./Sl. No. of register

Progressive value of invoices

Bank advice Sl. No. as per part I of the register to which the invoice relates.

Initials Adr.

SO(A)/AAO

Remarks and action taken to call for wanting involves where debit advices have already been received as per part-I and the corresponding invoice for the bill amount of the debit advice is to be received from service HQrs.

1 2 3 4 5 6 7 8 9 10 11 12

22

ANNEXURE “F” (Referred to in Para 21)

Fly leaf instructions – Letter of Credit Register

i. To ensure that opening of L/C extension of validity date enhancement of the captioned amount etc. are made under proper Govt. sanction.

ii. To record the payments made by the RBI/SBI against the L/C and to ensure that the payments made by RBI/SBI are not in excess of the amount for which the L/C has been established.

iii. To record the details of L/C established with the foreign Bank (Through RBI/SBI).

iv. To ensure that the payments are released by RBI within the date of validity of the L/C.

v. To ensure that Debit advices received from RBI/Debit slip received from the Accounts section are promptly booked in our accounts by means of raising punching medium.

vi. To call for the relevant invoices from Service HQrs. corresponding to the Bill amount of the Debit Advice(s) received from RBI/Debit slips received from Accounts Section.

vii. To call for the relevant Debit advices from RBI in respect of which invoices have already been received from service HQrs. where as the corresponding Debit Advices from RBI/Debit slips from Accounts Section are still awaited.

viii. To ensure that the value of Invoice(s) received from service HQrs. and that the value of bill amount of the Debit Advice received from RBI agrees

ix. To ensure that the Invoices received from services HQrs. are scheduled to the concerned CsDA/ARC authorities for verification of credit of stores enumerated thereafter necessary audit checks and booking the supplies against the contract.

x. To ensure prompt closing of time expired L/C(s) by drawing in a red line across the pages after obtaining confirmation regarding the validity period from service HQrs. and the total amount paid against the L/C from RBI/SBI as per the specimen given in Annexure ‘E’.

23

How to maintain the Register

The register will be maintained in manuscript as per the received format (Annexure E). As at present, the register may continue to be maintained in two parts viz. Part I showing the position of payments made by RBI (i.e position of Debt Advices) and Part-II showing position of receipt of Invoices from Service HQrs. and the action by this office on these Invoices. Entries in columns under Part I and Part II of the register will be made simultaneously as action to open/amend/enhance the L/C on date adjust the debit Advice/Invoice etc. is taken on their receipt from Government of India/RBI/Service Hqrs./Accounts Section etc. Separate page numbers will be allotted to different letters of credit opened against a particular contract or its SA/AA in order to ensure that the value of the L/C opened is not exceeded and the invoices/debit advices received against the Letters of credit are booked against it. Wherever a letter of credit has been fully paid and its validity period finally expired the page entries should be scored through to indicate that it is a closed case. In cases where the validity of a letter of credit has expired and the amount of L/C has not been fully utilized, the case should be reviewed and the matter taken up with service Hqrs. /RBI for further extension/closure of the letter of credit. The Register will be reviewed by each task holder for his respective portion every month and a list of outstanding debit Advices/Invoices as on 2nd of each month prepared by him in two parts. Based on these lists a consolidated list of outstanding debit Advices/Invoices will be prepared by the Auditor who is responsible for the review and submission of the registers maintained in Group and will be put to the SO (A)/AAO alongwith the Register by 10th of each month for submission to the officer-in-charge. Submission

The Register alongwith the list of outstanding debit Advices/Invoices will be submitted to the Officer-in-charge on 10th of each month and quarterly to Gp. Officer. Format of the Register

The existing format of the register has been reviewed in the light of working experience and certain changes/modifications introduced therein with a view to avoiding duplicate action in Part I and Part II thereof and obtaining additional information required for ready reference and in more condensed form.

24

ANNEXURE “G” (Rererred to in Para 23)

REGISTER OF SCHEDULING OF INVOICES/SPECIFICATION CERTIFICATES

TO CsDA/LAOs. SL Invoice No. Amount of Consignee CsDA to No. & dt. Initial No.& dt Initials Remarks No. & date Invoice units whom of memo of Supdt of acknow of SO(A) specific under ledgement /AAO ation Cert which of CsDA ificates sent to CsDA scheduled

1 2 3 4 5 6 7 8 9 10

ANNETURE ‘H’ (Referred to in para 14)

AUDIT DRILL FOR SCRUTINY OF THE CONTRACTS CONCLUDED BY MINISTRY OF DEF./SERVICE HQRS. While scrutinising the Contracts the following points will be looked into:- i. Contracts has been concluded by the Ministry of Defence/Service Hqrs.

indicating as to whether it is FOB or CIF value contract. ii. In case of the contracts concluded by Ministry of Defence the copy of

the contracts endorsed to CDA (Hqrs.) has been attested. iii. In respect of contracts concluded by Service Hqrs. ink signed contracts

will be required. iv. Prices have been clearly indicated in the contracts duly supported with

the Annexure wherever applicable. v. Terms of payment clearly indicate the mode of payment i.e by Band

Transfer ofr through letter of credit. vi. In respect of L/C payments the documents to be presented by firm for

payment have been properly mentioned in the contract. vii. Validity of L/C has been shown in the contract. viii. Provisions regarding Bank charges for opening and maintenance of L/C

debitable to party concerned is clearly mentioned in the contract. ix. Scheduled delivery period is clearly indicated in the contract. x. “Force Majure” clause as well as the provision for liquidated damage

for delayed supply of stores are provided in the contract.

25

xi. Suitable arbitration clause for any dispute for disagreement arising in the construction and performance of the contract has been reflected in the contract.

xii. Warranty for quality of stores and services has been given in the contract.

xiii. Provision for escalation charges made in the contract is duly supported with requisite dates.

xiv. The name of the ultimate consignee is invariably shown in the contract.

xv. It will be ensured that the requisite details of the contract is invariably noted in the contract indexing register as well as in the contract payment register.

xvi. a. In case of credit (Deferred payment) contracts it will be ensured that the contract is based on the agreement entered into between India and the Government of Russia.

b. Agreement/Protocol has been received. c. Banking Arrangements has also been received. d. The installment No. in which the liability is payable. e. Rate of interest and A/c No is indicated. f. Schedule for payment of installment and interest is given.

In case there is any variation in the contract with reference to the above drill, this must be brought to the notice of Group Officer, suitable action will also be taken to bring the same variation to the notice of contract concluding authorities.

ANNEXURE ‘I’ (Referred to in Para 24)

MONTHLY OUT-GO FIGURES OF FOE & NCR FOR THE MONTH OF………… Service Amount of Fresh Amount of Direct Pay- Amount of Debit Amount of Debit Advice L/Cs authorized ment aurthorised during Advice against against Direct Payment During the month the month L/Cs adjusted adjusted in month During the month

1 2 3 4

(1) Airforce FFE NCR (2) Army FFE NCR (3) Navy FFE NCR NOTE: - Cases involving Rs. 10.00 crores and above in respect of Col. 3 &4.

Accounts Officer (HQrs)

27

CHAPTER VII LICENCE FEE SECTION

Main Duties

31. The duties of Licence Fee Section are:- i. Scrutiny of hiring sanction and lease agreement of houses hired by the

Chief Administrative Officer, Ministry of Defence in Delhi/New Delhi for Service Officers.

ii. Audit and payment of rent bills preferred by the owners of the hired houses.

iii. Audit of Cash Book maintained by CAO received through AAO (Quartering) regarding payment of water/electricity bills etc. to the supplying agencies in respect of Civil building in which Defence Offices are situated.

iv. Audit and payment of debit statement on buildings let out by the Civil authorities for offices as well as residential accommodation of Defence personnel.

Hiring of residential accommodation for Service Officers

32. The responsibility for hiring of residential accommodation for Service Officers of Army, Navy and AF serving in Delhi and New Delhi is on the Chief Administrative Officers, Min of Def. New Delhi who functions as station Commander vide Govt. of India, Min. of Def. No. C/00327/Q3(B-I)/571/2 L/D (D&C)dt 5-2-76. The hiring of civil accommodation is done with reference to the scales of accommodation laid down for service officers and rentals ceiling fixed by Govt. of India and notified in Govt. orders from time to time. As sanction is issued by CAO and a lease and licence Agreement/Documents are received in Licence Fee section of CDA (HQrs) for scrutiny and record alongwith sketch plan and Board proceedings.

A Board of Officers with CAO (who functions as Station Commander) and other officers as prescribed from time to time as members will be set up for regulating hiring to the CAO’s pool of accommodation. The functions of the Board will be:-

i. to survey the available house from the point of view of Sanitation, Security. Suitability of locality, Scales of accommodation and as on.

ii. to fix the rent of the house without reference to Civil Authorities. The rent thus fixed will be final.

iii. the Board will record its reasons and the basis on which rent is fixed in each case giving details of location, plinth area, facilities, rents in the locality, availability of accommodation and so on.

28

Audit of Hiring Sanction

33. The following points will be looked into while auditing the sanction of hiring:- i. that the sanction has been accorded by Authority Competent to hire

accommodation under the rules and that the annual rent payable is within his financial powers.

ii. that the agreement is in prescribed standard form and the rent approved is within the ceiling fixed by Govt.

iii. that signed in ink copy of the sanction has been received. iv. that the signature of officer signing the sanction letters tallies with the

specimen signature separately kept on record. v. if the sanction has been signed by a subordinate officer it will be seen

that copy of proper and valid delegation of power exists. vi. that details required for maintenance of Hiring Register such as

particulars of accommodation, name of the building, name of owner, monthly rent and plinth are etc. of building is indicated.

vii. that plinth area/carpet area is within the entitlement of the officer for whom accommodation is hired.

34. After audit the sanction will be kept in a separate file and page No. allotted. The page No. of Hiring Register (to be maintained areawise, in the proforma at Annexure ‘A’) in which details of house are entered is also recorded on hiring sanction. Similarly Hiring Register will show the page No. of the file in which hiring sanction is kept. The Hiring Register serves the purpose of record of payment of rent as well as a check to prevent duplicate claims. The final bill will also be watched from this register. The details of termination notice will also to be recorded in this register to avoid payment of rent beyond the date of lease agreement.

Audit of lease & licence Agreement

35. A lease agreement is executed between the owner of the house and Chief Administrative Authority herein after called Licensor and License respectively. Agreement is executed on the standardized form. In the lease agreement it is to be seen among other things that it indicates the period of lease. Generally the period is seven months. As well as there is a option to renew for twice in the period for 11 months. The portion of a house building i.e floor etc. are clearly indicated in the agreement. It is to be seen that the amount of rent as agreed to depending upon the plinth area of the house, is indicated in the lease agreement of house.

36. The following further points will be looked into while auditing the lease and licence agreement – i. The lease & licnece agreements are executed on the prescribed form

(Annx. ‘A’) and no variations are made or new clauses inserted.

29

ii. The period for which leave agreements is signed. The rate of fee and other particulars are as per hiring sanction.

iii. There are no erasures and that all alterations have been attested by both the parties.

iv. The blank spaces are filled in or lines drawn through the spaces. That all the signatures are in ink and entire agreement in the same hand writing.

v. Lease agreement has not been entered into with a minor. vi. If lease agreement has been executed by a person other than house

owner, legally constituted power of attorney is furnished. vii. The same agreement does not overlap any other lease agreement.

37. After scrutiny of LA it will be kept in the same file in which hiring sanction if filed. An entry in the Hiring Register will also be made to indicate that the LA has been executed and received.

Rent fee bill

38. Rent fee to house owners is payable monthly in advance. A contingent bill showing the house No., the amount of licence fee, month of payment and the address of the claimant is received through the administrative authority duly countersigned for payment of licence fee for a particular month.

39. The following points will be looked into while auditing the rent bills:- i. The bill is prepared according to the terms & conditions of the

lease agreement/Hiring sanction as noted in the Hiring Register. ii. The bill is duly pre-receipted by the house owner over 20 paise

Revenue stamp. iii. On the pre-receipt given by the house owner a contingent bill is

prepared by the CAO’s office and the same is countersigned and a bill No. is given.

iv. It should be seen that the mode of payment, Bank A/c No. etc. are given in the space provided for in the bill.

v. The claim is covered by the period of the lease agreement and the rate charged is correct.

vi. The house or a portion of the house shown in the bill is actually hired under the provisions made in the agreement.

vii. Necessary budget allotment exists for payment of rent. 40. After audit, necessary payment enfacement will be made in the bills.

The Punching Medium and cheque slip for each bill will be prepared and submitted to AO for signatures. Thereafter DP sheet will be prepared and sent to ‘D’ section for issuing cheque to the parties concerned.

Debit statement

30

41. Debit statements on account of rent for residential accommodation let out by the civil authorities to the Defence Personnel and placed at the disposal of CAO as well as electricity, water and other service charges for civil building in occupation by the Defence Authority will be received annually for payment. It will be seen before admitting the claim that budget provision has been made by Min. of Def. /Army HQrs. For the particular year for which the debit statements have been verified by the AAO (Quartering). Attached with the CAO.

Cash Book

42. Provision of cash assignment in favour of CAO is made at the beginning

of the year for enabling him to make payment of electricity etc bills monthly on receipt of bills from the civil authorities in respect of Govt. buildings of Min. of Def. A Cash Book will be maintained by CAO for such payments etc. The cash book will be received once a month through AAO (Quartering) for audit. It is to be seen that the payment on account of electricity charges etc. are within the cash assignment made for the month and the balance carried over to the next month and added to that month’s cash assignment.

DP Sheet Register

43. DP sheet will be prepared for each bill passed for payment by the section. A central DP sheet Register will be maintained in which details are recorded after the bill is received back from ‘D’ Section. Cheque No. will also be noted in the DP Register.

44. At the end of the month the list of bills received/passed and cheque No. & date against each bill will be forwarded to the CAO office for record.

45 to 50 BLANK.

ANNEXTURE ‘A’ (Referred to in Para 35)

PROFORMA OF HIRING REGISTER

Particulars of House Hired Name of the owner Rent approved Period for which hired and date of commencement of hiring Bankers to whom monthly rentals are to be remitted. Period Bill No. & dated Amount Signature of AO Remarks SO (A)/AAO

31

1 2 3 4 5 6

32

CHAPTER VIII MISCELLANEOUS SECTION

51. The conduct and disposal of work dealt with in the Miscellaneous Section will generally the same as laid down in Chapter VI of Office Manual Part II. Vol.I.

33

CHAPTER IX TRANSPORTATION/LTC SECTION

52. The conduct and disposal of work dealt with in the Transportation and LTC section will generally be the same as laid down in Chapter IX of Office Manual Part II. Volume I.

34

CHAPTER X FUND REVIEW SECTION

Duties

53. Fund review section is responsible for maintenance of GPF accounts in respect of Civilian personnel of AFHQ Cadre serving in Army Headquarters/Naval Headquarters and Inter-Service organizations. This section is also responsible for maintenance of GPF accounts in respect of the Civilians posted out on deputation from these HQrs. Procedure

54. The procedure for maintaining GP Fund accounts as detailed in Office Manual (Fund) Part-V will be followed mutatis-mutandis in FR section of CDA (HQrs) New Delhi with the following exceptions:- i. Posting of GP Fund subscription will be made from the paid pay bills

instead of from GPF schedules. ii. Payments of Final withdrawal/Temorary advance on account of GOF

will be made by FR section instead of Pay Section and in this regard the procedure as detailed in OM Pt. II Vol. I Pay Section will be followed.

iii. The GP Fund account of Civilians of AFHQ Cadre serving in Air HQrs will, however be maintained by pay Section in respective IRLA’s.

55 to 56 BLANK.

35

CHAPTER XI PAY SECTION INCLUDING PAY TECH SECTION

Duties

57. Pay section is responsible for audit and payment of Pay and Allowances of all Non-Industrial Civilians (Both Gazetted and Non-Gazetted) serving in Armed forces Headquarters and Inter services organizations. For this purposePay Bills are received from CAD’s Office/Naval Headquarters. Procedure as laid down in Office Manual Part II, Vol.I in respect of pay Section will be followed, except in the case of Civilians (both Gazetted and Non-Gazetted) serving in Air Headquarters for which the procedure as outlined in para 58 will be followed. Pay and Allowance of Civilians of Air Hqrs. 58. Pay and allowances of all Civilians (both Gazetted and Non-Gazetted) serving in Air Hqrs. Are maintained on IRLA system by the Air Forece Groups of Pay Section in CDA (Hqrs.) wherein all casualties published by the Air Hqrs. in various O.O Part II/III throughout the monthe are adjusted and all the end of each month a statement of Accounts containing complete details of all credits and debits is issued alongwith Acquittance Roll Derectorate – wise to the Accounts Section in the Air Hqrs. for disbursement of Pay and allowances to each individual Officer concerned. GP Fund of Civilians- Air Hqrs.

59. G.P.F Accounts of all Air Head Quarters Civilians are also maintained in Air Force Groups of Pay Section. For this purpose GPF cards are maintained in respect of each individual/Officers separately alongwith broad sheets. GPF advances/Final withdrawals of all Air Headquarters civilians are also dealt with in Air Force Groups of Pay Section and CCO-9 are issued at the end of each financial year to all the subscribers. The detailed procedure in this regard is the same as contained in chapter X (Fund Review Section) of this Manual. 60 to 62. BLANK.

36

CHAPTER XII STORE CONTRACT SECTION AND RADAR AND COMMUNICATION

PROJECT OFFICE SETION (RCPO) Objectives

63. The objectives of this section are to ensure:- i. a. Scrutiny of supply orders placed on various indigenous manufacturers

by DDS for Development of proto type of various equipments/machinery as well as procurement of stores by them.

b. Scrutiny of amendment to original SOs. ii. Pre audit and payment of bills of contractors on whom the supply orders

are paced by DDS. iii. Scheduling the CRVs in respect of paid bills to the concerned LAOs. iv. Making “On Account/Advance’ Payment as authorized by Contract

concluding authorities and sanctions issued by CPOs etc. and to note these payments in the Demand Register and to recover such payments while payments are made to contractors including interest as per Contract Agreement/Supply Order etc.

Similarly all liquidated damages/recoveries on account of short supplies as intimated by CPO/Certificate will be noted in the payment sheets and recoveries made. Duties 64. The duties of this section are:- i. To scrutinize supply orders amendments thereto issued by Ministry of

Defence, Deptt. Of Defence Supply and Defence Production as well as the various tehnical committees attached thereto.

ii. To make payment towards contractors’ bills received against the supplies concluded by Deptt. Of Defence Supplies/Defence Production/Technical Committees and to book the expenditure to the relevant head of account in the Defence Service Estimates of Army, Navy, Air Force, Factories etc.

iii. To ensure that the expenditure booked towards stores head of account have been correctly compiled by EDP Centre in the Sectional compilation and to render a report to Accounts Section in this regard.

iv. To scrutinize supply orders floated by RCPO and to make payments of bills against these supply orders, in respect of contracts concluded by RCPO with Public Sector Undertakings such as ITI, BHEL,ECIL and other private agencies.

Points to be seen in the Audit of Supply Orders/ATS/Amendments

37

Scrutiny of Supply Orders

65. The points to be seen in the scrutiny of supply order floated by DDS will

be as under:- 1. The supply order is signed in INK by the Officer authorized to sign

and the specimen signatures of the CPO who has signed the supply order agrees with that recorded in CDA (Hqrs.)

2. The supply order No. and date is correctly quoted and that the supply order is not a duplicate one. This can be checked, based on the continuity of Serial Nos. Separate serial numbers are given by DDS ranging from 1 to 10000 for each category of supply orders e.g. VG series, AEP/AMT series, LMN series TC (MES) TC (Aero) etc., based on the nomenclature of stores/technical committee responsible for concluding contracts.

3. On receipt of the supply orders, it will be seen that the same is entered in the Supply Order Register.

4. Name and address of the contractor/firm is correctly shown in the supply order.

5. The supply order is complete in all respects and that all Annexures/Appendices are correctly attached, that they are complete in all respects and no pages are blank/ missing.

6. Description of stores to be supplied are clearly annotated with their drawing/specification Nos. etc. if any.

7. The SO clearly envisages the Quantity of items to be supplied vis-à-vis price for each unit/item and the total cost of the contract (value) is shown both in figures and words.

8. A clear indication has been made in the S.O. regarding mode of payment towards ED/CST and other charges.

9. The clause relating to Delivery Schedule is clearly worded and that no ambiguity prototype cases, the method of assessing the Delivery Period is clearly indicated (such as from the date of approval of prototype/commencement of bulk supply etc.)

10. The consignee’s name and address is clearly indicated. If there is more than one consignee, the qty., for each consignee is clearly spelt out in the supply order, wherever necessary.

11. The name of the Inspecting Officer, his/their address is/are clearly given in the S.O.

12. The clause relating to the warranty clause, erection charges etc. are clearly indicated in the S.O.

13. The mode of payment of Security Deposit by the Supplier is given in the SO including the amount of security deposit.

38

14. The conditions governing 95% payment and 5% payment are clearly narrated in the S.O. to enable the supplier to attach all requisite documents while submitting the bill for payment.

15. The ‘Head of Account’ to which the expenditure incurred for procurement of stores for Defence Service is clearly indicated in the SO (such as Major Head/Minor Head and detailed Head of A/C) for classification of expenditure.

16. In case the SO relates to procurement of stores by DDS on behalf of BSF, CRPF etc. the party/Accounts Officer from whom the recovery is to be effected are clearly indicated in the SO and such SOs copy has also been endorsed to the civil Accounts Officers concerned.

17. If any special features such as erection charges, Rubberisation charges, fixing of generating sets on Tank etc. is involved the conditions of payment for these works is clearly indicated in the S.O.

18. Price escalation clause is clearly stated and the formula for assessing escalation is predetermined and provided for in the supply Order.

19. The clause relating to Arbitration is also clearly annotated and that the Government interest is safe-guarded.

20. Insurance of goods, if necessary, is provided for in the supply Order. 21. A separate clause exists concerning the 2% payment for literature

for the machinery equipment supplied, vis-à-vis the conditions to be observed both by the contractor and the Paying Officer.

22. A provision exists for making an ‘On Account/Advance Payments’ with specific conditions therefore. In such cases, the mode of adjustment of on Account Payment (DAP) Advance Payment is also indicated vis-à-vis interest rate to be charged for such advance payment.

23. The clause regarding recovery of liquidated damages is clearly indicated. After checking the SO as above, the Auditor/Senior Auditor and AAO will endorse under their dated initials on the supply order a certificate to the effect that “Supply order audited as per drill and found correct. Entered in SO Register vide SL. No. of Month/Year”. After examination of the SO as above the Auditor/Sr.Auditor will complete the working sheet which will be installed by him and the AAO and placed in the SO file. A separate file will be opened for each SO and a blank payment sheet will also be attached to the SO file while filling the SO.

Amendment to supply order

66. The amendment to Supply Order will be examined to see that:- a. The amendment is signed by the competent authority and a copy of

the Amendment has been endorsed to the Def. (Finance) Supplies Division.

39

b. The amendment if relates to price escalation, it should be seen that a provision exists in the original SO for such a revision.

c. The amendment letter is serially numbered and the earlier amendment letter has been received and recorded.

d. The liquidated damage has been assessed and amount to be recovered is specified in the amendment letter.

After checking, the amendment letter, the Auditor/Sr.Auditor and SO(A)/AAO will endorse a certificate on the amendment letter to the effect that “Original Supply Order linked and amendment incorporated in the relevant paras”. No amendment letter will be filed without approval by AAO. In case any recovery is due towards liquidated damages, a note to this effect will be kept in the SO “Payment Sheet” for recovery from future/subsequent bills. Points to be seen in the audit of store contract bills

67. In the audit of contractor’s bills for payment, it will be seen:- 1. that the claim is preferred by none other than the contracting firm or

their agents authorized in this behalf by a duly executed power of Attorney and that it is in accordance with the terms and conditions and is valid in every respect. It is countersigned by the Admin. Authority authorized to do so.

2. that the address of the firm given on the bill agrees with that shown in the SO/Contract.

3. that the bills are submitted in the prescribed form in triplicate (IAFA – 68). Revised and that they are duly prereceipted by the payees. The duplicate and triplicate copies of the bills should be marked “not for payment’ by the supplier.

4. that the bills have been prepared in ink/ball pen, type written bills and carbon copies of type written bill be accepted but the signatures on them must be in ink/ball pen.

5. that all the columns in the bill form, particularly those relating to the number and date of AT/SO and rate contract, particulars of railway receipt, Inspection Note No. and Date, Head of Account etc both Gazetted and Non-Gazetted.are correctly filled in.

6. that alteration or corrections made in the particulars filled up in the bill are attested separately by the person signing the bill.

7. hat the description, quantity of stores and the rate per unit charged are in accordance with the contract/SO, the calculations are correct and the totals are written in figures as well as in words and both agree. The arithmetical calculations should be checked and the process of check recorded in the body of each bill.

40

Note: A bill submitted by a contractor should not be passed for payment for any amount higher than that claimed due to rectification of even obvious mistakes committed by him, as the receipt furnished by him is legally binding on him only for the claim actually recorded by him on the bill. In such cases, the short claim should be intimated to the contractor leaving it to him to prefer a supplementary claim. 8. That a 1 rupee Revenue Stamp is affixed on the original copy of the bill.

If the claim exceeds Rs. 5000. NOTE: A bill which is otherwise in order and payable should not be returned on this account alone but kept pending and stamped receipt called for from the supplier through a half margin memo. 9. that the certificate regarding payment of ED, CST has been furnished by

the contractor/Firm in the appropriate column on the bill. 10. That a warranty certificate wherever necessary is attached. 11. That a certificate regarding dispatch of Railway receipt by Regd. Post

to the consignee is enclosed together with a photo copy of Railway Receipt sent to the consignee. Further the No. and date of dispatch of Railway receipt to consignee is whown in the bill form at appropriate column.

12. That original gate passess are attached in support of ED claimed. 13. That in respect of 98,95,90% bills payable on proof of inspection and

dispatch of stores it should be seen that the bill is supported by the following documents/certificates- a. Accounts Office copy No. 1 of the Inspection Note in original with the

Inspection Note Certificate duly completed and signed by the authorized inspectiong authority is enclosed.

b. That the Quantity tendered for inspection and Qty. acceipted and approved are shown clearly in the relevant column of inspection note.

c. That claim is only in respect of Qty. accepted by Inspection Authority and not for the Qty. tendered if the former is less than the latter.

d. Despatch certificate as provided for in the system of payment clause of the S.O is furnished by the firm/supplier. If the stores are dispatched by sec. a clpy of the bill of lading is attached as also for air dispatch Certificate Note issued by Airlines is enclosed.

14. That in the case of local deliveries or delivery by Road Transport a “Provisional Certificate” in the prescribed for m as proof of delivery from the consignee on the receipt certificate copy No. 1 of the Inspection Note subject to final acceptance by the consignee is attached. 15. That a certificate duly signed by the person who signed the bill has been recorded on the bill form.

41

16. That when the contract/supply order stipulate inspection in stage at the time of manufacture or after erection of site the necessary inspection certificate is furnished with each stage payment bills. 17. That where the payments are made as proof of dispatched against firms guarantee/*warranty and where in rare case the Inspection Notes are stated to be lost the followed for issue of “Certified true copy of Inspection Notes”. On receipt of reference from the supplier regarding loss of inspection note, the paying authority will send a letter of confirmation to the Inspection authorities that the payment had not been made against such an inspection note and would not be made again original documents if presented subsequently and a suitable note has been kept to this effect, Based on this duplicate inspection note will be issued by the Inspecting Officer. After checking the bills as stated here-to-fore, the bill will be passed for payment by the Auditor/Sr.Auditor and submitted to AAO/AO for further necessary action. He will prepare the cheque slip and the PM and record the details of the payment in the payment sheet recorded in the supply order file. 18. That the connected balance payment bills are accompanied with the “Accounts Office copy of the Inspection Note No. 5 with both the Inspection Certificate and Receipt portion duly completed by the Inspector and the Consignee respectively. 19. That the stores have been delivered within the delivery period and the late delivery if any, has been regularized by the Competent Authority. 20. That the final bill in the case of fabrication contract is not paid before the method of disposal of surplus and scrap lying with the fabricator is ascertained from the purchase officer. If the purchase officer decides that surplus and scrap are to be retained by the fabricator, the value of the surplus and scrap should be recovered from the final bills or from the security deposit, if necessary. 21. That the necessary details of balance payment is recorded in the payment sheet kept in the SO file against the relevant 98%,95% or 90% payment entry. That in respect of cent percent payment bills the contractor submits bills in the prescribed form duly completed in all respects and accompanied by the Accounts Office Copy No. 1,2 and one Additional copy No. 5 of the Inspection Note which also contain Inspection and receipt certificate recorded by the Inspector and the consignee respectively and the details of the payment is recorded in the payment sheet kept in the SO file. Scheduling of Vouchers

68. After close of the month task-holder will tally the vouchers pertaining to his task meant for scheduling and detached at the time of preparation of D.P sheets, with the D.V. Register and sort out the vouchers consignee/LAO wise. He will make necessary entries in the scheduling Register maintained task wise, dispatching one copy of the 95% bill to the consignee and all 95%

42

and 5% bills along with the Inspection Notes (Copy No. 5) to the concerned LAO. Acknowledgement will be watched in respect of all vouchers scheduled to the consignee and the LAO. Rendition of Factory Report

69. After the action on audit payment of bills are completed the Punching Media along with paid bills will be sent to computer task for compiling the expenditure to various factories head of account on output envisaging expenditure relating to each Factory will be taken out from the PC by the computer task-holder and given to AAO of Store Contract Section. The AAO will compare the output generated by the Computer task-holder with the compiled actuals to see that the expenditure has been correctly booked and tallied with the sectional compilation and then send this factory report to respective Accounts Officer incharge of the factories along with vouchers. Rendition of monthly expenditure report and review of sectional

compilation with booked expenditure as per Punching Medium

rendition of a certificate to Account Section on monthly basis.

70. After the accounts of a particular month is received from EDP Centre duly compiled, the Store Contract Section will compare the compiled actuals with the Punching Medium office copies to see that the amount has been correctly compiled as per the Punching Media and all the code heads have been correctly shown in the sectional compilation vis-à-vis the amount against each code head. After reconciliation is over a certificate will be rendered by the Store Contract Section through the AO concerned to Accounts Section (Local) to the effect that the expenditure booked in the sectional compilation for the month of …………. Has been checked with the office copy of Punching Media and found correct in that all the code heads have been correctly operated and no discrepancy exists. If, however, any amount has been wrongly compiled to a different code head, other than that reflected in the Punching Medium for the amounts wrongly shown against the particular code head necessary readjustment will be made by the Store contract Section and intimation to this effect will be sent to Accounts Section along with above certificate. A monthly statement of expenditure based on the compiled actuals in respect of various head of accounts will be prepared (either manually or on PC) service wise namely for Army, Navy, Air Force and Factories and this expenditure statement will be sent to Accounts Section for posting in the register held by them for monitoring store expenditure against allotment. This expenditure statement will be checked by Accounts Officer of the Section concerned before transmission to the Accounts Section.

43

Note: - The Punching Medium will clearly indicate the category code which will be prefixed to the expenditure head with a view to identify the source of procurement such as code No. 09 for indigenous procurements. Miscellaneous

71. It will be responsibility of the Section officer (Acts)/AAO of Store Contract Section to see that all the bills received are acted upon well in time and all amendment letters to the supply orders are properly linked and necessary amendments carried out to supply orders and check list is prepared and attested by AO. As and when letters are received from the CPO or from the units and formations intimating the liquidated damages to be recovered/recoveries to be made for short supplies respectively will be noted in the payment sheet of the supply order file/Demand Register in red ink and the amount be recovered at the time of submitting the bills of the respective firms. The AO of the Store Contract Section will conduct a few test checks/supply orders to the extent of 30% in this regard to ensure that recoveries due to the Government have been correctly made. Similarly all on accounts payments made to suppliers for development of proto type items are received and outstanding items are referred to CPO of Ministry of Defence/DDS/RCPO etc. RCPO Contracts- Audit and Payment 72. In regard to audit and security of RCPO contracts and also bills relating

to these contracts the following points will be seen:- 1. that the standard forms have been adopted. 2. that the authority sanctioning the contract is competent to sanction it

viz. upto the value of Rs. One crore by Project Director and if the value of the stores exceeds Ministry of Defence with the concurrence of Ministry of Defence (Finance).

3. The terms of the contract are precise and definite and there is no room for ambiguity or misconstruction therein.

4. No contract involves an uncertain and indefinite and liability or any condition of an unusual character without the prior approval of the Government of India.

5. Due publicity has been given in calling for tenders where the contracts have been concluded on tender basis.

6. That the provision exists in the contract for liquidated damages or compensation from the contractor in the event of breach of contract.

7. That there are an apparent irregularities or special features which would involve legal consultation.

44

8. That provision is made for the termination of the contract on either side.

9. That the lowest tender has been accepted, if not, the reasons thereof have been recorded.

10. That in respect of any extension to the contractual period of an existing contract, sanction of CFA is obtained.

11. That the contractor is not black listed. 12. That he is sole proprietor or holding power of attorney from the

partner. 13. Specimen signature of the contractor or his duly constituted attorney

is received and recorded. General points to be seen while scrutinizing purchase order/supply

orders placed by RCPO.

73. It will be seen:- i. That LPO’s/SOs are placed on the standard forms. ii. That order is placed by the competent authority viz. by :-

a. Project Director upto Rs. One crore and Local purchase order upto Rs. Ten Thousand is paid out of imprest as per delegated powers vide Government of India, Ministry of Defence, Secret letter No. 20(25)/CRD/RCPO/787/OS. (Systems)/73 dated 8-3-1973. Concurrance of OSD(Fin.) of RCPO has been obtained in respect of (a) above.

b. Government sanction viz. Ministry of Defence with the concurrence of Ministry of Defence ((Finance) has been accorded if the value exceeds beyond Purchase Orders Powers.

iii. That ink signed copy of SO has been received. iv. That the order has been accepted by the firm. v. That signatures of the copetent authority aurthorised to sign POs/SOs

tallied with reference to the specimen signatures hold. vi. That security Deposit were recoverable has been deposited or Bank

Guarantee for the same amount has been received duly accepted by the Contract Purchase Officer.

vii. That the certificate from RCPO to the effect that the Bank Guarantee for the same amount has been received in respect of the advance payments to private firms and recorded at their end, is watched.

viii. That the bills are paid with reference to the terms and conditions of the contract. The general procedure/conditions in respect of PSUS.

i. General conditions of contract M/s. BEL Minstry of Defence 40 Nos. 14(5)/75/D(B) M/s. BEL (BEL) dated 26-12-75.

ii. Payment procedure M/s. ITI FI(92)/71/DS (System) dated 21-7-75.

45

iii. Payment procedure M/s. ECIL-M of D 40 No. PC-1 to 6 (14)/5/RADRCP/DS (System)/83 dated 28-3-83.

ix. Normally the payment to PSUS vis. BEL,ITI and ECIL are made as under:- a. 20% Advance payment on placement of order. b. The next 65% (i.e. upto 85% of the order) on progressive

expenditure incurred by the PSUS and as certificated by them. c. The balance 15% payable on proof receipt of stores in good

conditions by consignee. Post Audit of Local Purchase Orders Bills- General points to be seen in audit

74. (A) Audit of Local Purchase Orders It will be seen in audit:-

i. that the LP orders are placed on the standard form. ii. that order is placed by the CA as per the delegated powers (i.e.

upto Rs. 1 crores) local purchase orders upto Rs. 10,000 paid out of imprest.

iii. ink signed copy of order is received. iv. the order has been accepted by the firm v. signature of CA to place the order has been verified with reference

to specimen signature on record.

(B) Audit of Bills/Vouchers

i. Payments for local purchases orders are made by imprest holder Accountant (Officer) of RCP Depot and RCP Hqrs. A copy of the cash book on IAFF (F) 1501 duly supported by the schedule of vouchers. Form IAFF (F) 1505 and original copies of the bills vouchers are sent to CDA(AF) not later than 3rd of every month.

ii. Schedules for these LP vouchers are prepared by imprest section of CDA (AF) in triplicate on manuscript from where in the number of vouchers the amount of each voucher and classification of code head to which compiled are given. Two copies together with relevant vouchers in original are sent to CDA (Hqrs.) for audit by 20th of the 2nd month of which the cash A/C relates.

iii. These accounts are audited with reference to the audit drill and observations if any are issued to the unit concerned by 4th of the following month, noted in the APR and their settlement watched.

iv. Duplicate copies of the bills are sent to the LAO (AF) Palam for verification of credit of stores.

46

During the course of pre-audit of bills in respect of sores procured through PSUS/Private firms, the following general points as laid down in OM Pt.II Vol.I and OM Part III are to be examined.

1. SO No. and date entered in the bills are correct. 2. Bills No. and date exist. 3. That the bill is on prescribed form and it is in triplicate. 4. That the bill is affixed with 20 paise revenue stamp and

receipted by the payee. 5. In case of 65% bill in respect of BEL/ITI/8ECIL, it will be ensured

that the bill is supported by a certificate from the Financial Adviser of the PSU that:-

“the total amount claimed as advance is not more than the total or progressive expenditure incurred by the CDA against the relevant indent/order upto date of claim”. a. That inspection note copy No.1 and proof of dispatch have

been attached with the 10% balance bill in respect of PSUS. b. That a certificate to the effect from the consignee that the

stores have been received in good condition alongwith BOC-CRVs have been endorsed on the copy No.2 and 5 of inspection Note alongwith 5% bills.

c. In respect of private firms, 95% payment bills should be supported by copy No. 1 of not and proof of dispatch and 5% bill should accompany copy no.2 and 5 duly receipted by consignee alongwith a certificate from the consignee that stores have been received in good condition.

6. Checking of arithmetical calculation as well as quantity paid for is as per rates of supply orders.

7. Bill is preferred by the persons authorized to prepare the same. 8. That all alterations in the documents are attested by the

payee/suppliers. 9. PD/SD has been sanctioned by CA. 10. Signatures of the Officers signing the PD/SD tally with the

specimen signatures on record.

75 to 80. BLANK

47

CHAPTER XIII ARMY PURCHASE ORGNISATION SECTION

General

81. This section has been formed w.e.f July, 1986 on the transfer of work of Army Purchase Organization from the Department of Food (PAO) to Min. of Defence (Q) and CDA (HQRs) for payment of bills relating to Central Purchase of ASC Stores by APO Organisation. With effect from 1-4-86, the procurement of ASC Stores, viz, Sugar, Rice, Atta, Dal, Oil, Hydrogenated, Spice etc. has been taken over by Min. of Defence and consequently the payment of bills for procurement of above items have been transferred w.e.f 1-7-86 to CDA (HQ), New Delhi from the PAO, Deptt. of Food. The payment relating to procurement of tinned food and other milk products done by CSD for supply to various Units/Formations through Composite food laboratory which was earlier dealt with by CDA (CSD) has also been transferred to CDA (HQRs) w.e.f 1-4-88. Objectives

82. The main objective of the section is:- i. to receive all ATs and to scruitinise the various acceptance of tender

letters (which serve the purpose of Supply Order) received from APO Organization.

ii. to enter these supply orders in a Register and to open a separate file for each Acceptance of tender letter (as per Supply Order Register at Annexure A).

iii. to pre-audit and make payment of bills relating to the acceptance of tender letters received from the suppliers within 5 working days (within 3 working days in respect of bills relating to levy sugar) and to ensure that. Vrs. Are sent in time to cheque section for issue of cheque.

iv. to compile the amount of ASC stores and to reconcile this figure with Monthly Printed Compilation.

v. to schedule the vouchers for the payments for ASC stores to respective LAOs for verification of credit in the consignees lodger and to watch their acknowledgement. (As per Scheduling of Vrs Register at Annexure B).

vi. to attend to all correspondence relating to above aspect of work received from APO/Units and Formations/Army HQRs and others with utmost priority.

Procedure for receipt of dak

48

83. The bills relating to the above sections are either received by dak in ‘R’ Sections are either received by dak in ‘R’ Section or dropped in the Bill Box kept in the office daily between 3 PM and 4 PM. The box is opened in GO’s presence and bills are checked and handed over to ‘R’ Section to diarise the same along with the bills directly form the firms/suppliers by Registered Post and to transmit them to APO Section on the same day for pre-audit and payment. Similarly, the letters are also diarised and handed over to the section alongwith Bank Guarantees etc. as and when received. Further normal procedure for diarisation of dak to Task holder is followed by this section also and dak sheets are reconciled with the distribution to task holder in respect of bills by AAO/SO (A).

Scrutiny of ATs/and Audit of Bills

84. The procedure for scrutiny of ATs and Audit of bills will be as under:-

a. APO Organisation functions under the Administrative Head of CDP (Chief Director of Purchase) of the rank of Brigadier who is responsible for Tendering and Procuring of rice, wheat, all variety of Dal, Skimmed Milk etc. for use of Defence Forces. JS (O) is the Head of the Ministerial side and DFA (O)/Addl. FA renders financial advice etc. for procurement purposes.

b. The responsibility of CDA (HQ) commences from the stage of acceptance of Tender letter (which is also known as supply order) which is received in CDA (HQ) envisaging the acceptance of Tender of a firm Vis-a–vis the conditions for supply of stores, mode pf payment including arbitration clause etc. This ATL is called sanctions in the terminology of DGS&D contract Manuals.

General principles of scrutiny of ATL/Sanctions

85. In the matter of audit of expenditure incurred by APO two types of check are involved. They are audit of (i) sanction ATL/Supply Order , Price Agreement, Amendment Letters etc. and (ii) audit of bills against ATL/SO/Sanctions etc. The following general guiding principles will be kept in view while checking the ATL/SO/Sanctions:-

i. The sanction has been accorded by the Competent Authority. Once it is established that the sanction ha been issued by the Competent Authority: it would be objected to only on the grounds of propriety. Even when the objection on ground of propriety is to be taken, the payment against a sanction/ATL should not be with held.

49

ii. As regards audit of sanctions from propriety angle, it should be seen that cannons of financial propriety have been observed and high standard of public financial administration exists. Any objection from propriety angle be submitted to DFA (Q) through CDA (HQ).

iii. That there is a provision of funds authorized by the Competent Authority. Though this check is to be exercised by the Purchase Officer, the indication is an acceptance of Tender Letter/SO etc. regarding the year in which payment is desired to be made in sufficient proof of provision of funds.

In audit of acceptance of tender, it should be seen that: i. That the schedule to the A/T is in the prescribed form, cases where

there is deviation, if any noticed, should be brought to the notice of Purchase Officer for rectification.

ii. That the particulars regarding quantity, rate and cost of each item are furnished in ATL the prices stipulated are firm and the total cost is given in words as well as in figures. Particulars of contracts providing price variation clause or provisional rates should be noted in the Register of Finalisation cases (Contract Supply Order Register as at Annexure A).

iii. That there is a reference to standard condition of contract wherever essential.

iv. That there is no omission of any important clause e.g security deposit, inspection of stores, date and place of delivery, dispatch instructions, the name of the consignee, the AO by whom the charge is adjustable, the Head of A/C to which the expenditure is debitable etc.

v. That it is approved by an authority Competent to enter into the contract. It should also be seen that the contract has been signed for and on behalf of the President of India.

vi. The Acceptance of Tender letter/SOs is signed in Ink by the purchase Officer.

vii. that in cases in which the A/T contains a clause regarding acceptance of higher prices for earlier delivery a suitable note should be kept in Red Ink in the payment Register so that in the event of extension of delivery period, the difference between the contract rates and that of the lowest acceptance tender is either recovered or waived by the competent authority.

viii. that if the A/T provides for payment to a party other than the contracting firm, a power of Attorney is already registered in the books of this office in favour of such a party. If not, a reference be made to the firm.

ix. that if the ATL provides for payment of ED/Sales Tax etc, the rate at which they are payable is indicated therein.

x. that the following provision has been made in all AST relating to for station of dispatch:-

50

“The Purchaser will not pay separately for transit insurance and the supplier will be responsible until the entire stores contracted for, arrive in good condition at the destination.”

xi. that the As/T stipulating a price variation clause contain a provision in the Mode of payment/or system of payment clause to the effect that the balance of 5%/2% would be made only after finalization of price and issue of necessary amendment letter to A/T should be taken up with the Purchase Officer.

xii. In the case of running contracts, the validity period of the contract is indicated.

xiii. That in the endorsement of the contract/AT/SOs to the CDA (HQ) it has been specifically indicated whether or not income tax at source under Section 194 © of the Income Tax Act, 1961 is to be deducted.

xiv. That all pages are correctly numbered and no page is missing including that of Appendix/Annexures wherever necessary.

After Exercisation the above checks, the clerk/Auditor/Senior Auditor should enter the AT/SO in th payment Register with suitable endorsement as under on the AT/SO. Payment to contractors in respect of contracts ( acceptance of tenders-at) concluded by Army purchase organisation- Ministry of

Defence

86. Chief Director of Purchase (CDP) of APO is the Head of the Organisatin and powers have been delegated to him for conclusion of the A.T. Financial concurrence of the associated finance willl be obtained. Payment terms depends upon the nature of commodity and broadly they are as under:

a. Rice & Wheat: Procured through F.C.I. 100% payment is released. FCI notified monthly allotments of wheat to the Flour Mills and quarterly release of Rice from their FCI Depots.

b. Sugar: 98% of the value of sugar is released on production of

dispatch advice issued by the Central Food Laboratory and the balance 2% on production of I.Note 1,2 & 5. The rate at which the sugar is procured from the Sugar Mills situated in the various States is notified by the APO and these rates only are reflected in the A.T. Placed on various Sugar Mills.

c. Other Items Viz Dals etc: Normally 95% of the value of items are released on production of dispatch advice issued by the CFL and the balance 5% on production of I note 1,2 &5. In some cases viz Dismis, etc. Onl 90% is released on production of dispatch advice and the balance on I Note 1,2 and 5.

51

d. Power of Attorney: Some of the firms/Sugar Mills excute power of attorney in favour of their Banders to enable the Banks to realize all the payments due to the contractor. In such cases suitable entries are made in the register (as alt Annexure ‘C’) maintained for this purpose and also in the working sheet of the A.T.

e. Security Deposit: Security deposit, if any, recovered is entered in the ‘Register’ maintained for this purpose (as per Annexure-D).

98%/95% Bills

It should be ensured that:-

i. The bills are submitted on Form (FD) 58 in duplicate and is complete in all respects and prepared as per the instructions on the Form.

ii. The bill relates to an A.T. placed by APO for which this office is responsible, for release of payments and the A.T. No and date is specified on the bill.

iii. The bill has been pre-recepted and affixed with a revenue stamp. iv. Dispatch advice in duplicate issued by the CFL is enclosed and it is

duly signed by reprentative of CFL and affixed with office seal. v. The signature of the CFL reprentative on the dispatch advice is verified

with reference to the specimen signature received in the office and the specimen seal impression is verified on all the dispatch advices.

vi. In the case of release of first payment against the A.T. it willl be verified whether confirmation from APO has been received regarding recovery of the security deposit.

vii. The quantity supplied is within the quantity ordered (exception 5% less or more subject to a value of Rs. 5000 only vide CDP letter No. J/16012/I/82/CDN dt 28-7-83.)

viii. The rate charged is as specified in the A.T. ix. ED/ST if payable is provided in the AT and the requisite certificates of

ED/ST is enclosed to the bill. Original Gate Pass for payment of ED is enclosed. In case the supplies have been made during the extended delivery period, any increases in the levies during the extended period should bot be admitted.

x. The calculations are correct. xi. The supplies are made within the delivery schedule specified in the

A.T. xii. A record o bills Nos. and date, quantity released, rate and the

progressive total of quantity is maintained duly initalled by AAO with date to keep a track of quantity supplied against the quantity ordered.

xiii. A record of payment contract-wise is kept in a register on Form PAO UAU-51.

xiv. Postal/Registration charges are recovered from the bill.

52

xv. Octroi if any paid and certificate regarding payment of octroi to Municipal Authorities should be looked into.

2%/5% Bills

In addition to the checks prescribed of items (i),(II),(iii) for 98%/95% bills. It should be ensured that:

i. Copy No. 1,2 and 5 of Inspection Note on DDM-60 issued by the CFL is enclosed. Inspection Notes are with Copy No. 1,2 and 5 as the case may be and are signed by the representative of CFL duly affixing the office seal. The name and designation of the officer signing the I Note should be looked into.

ii. Reference to the Bills, Quantity and the payments received through 98%/95% is mentioned.

iii. Calculations are correct. iv. The supplies have been made with the delivery schedule and if not

liquidated damages if any have been recovered. Confirmation from APO regarding liquidated damages.

v. Recoerries due to short receipt of stores, if any, reflected on the I Note should be effected.

vi. Postal registration charges are recovered from the bills. vii. All the 98%/95% bills for which 2%/5% have been claimed are duly

linked regarding the release of 2%/5% suitable entries are also to be made in the contractors payment register.

100% Payment in respect of FCI

In addition to the checks prescribe at items (i), (ii), (iii), (iv), and (v) for 98%/95% bills it should be ensured that :--

i. The rates charged are as notified by APO from time to time in respect of Rice and Wheat.

ii. Quantity ordered for release as per APO letter from various FCI Depots in respect of Rice are noted in a register and the actual quantity released as per bills is noted against each to find that the quantity for which the payment is released is not in excess of the quantity ordered.

iii. In respect of Wheat also, the quantity ordered for release against each of the Floor Mills is noted in a register and the quantity for which payment, is released is noted against each to find that the payment released is not in excess of the quantity ordered.

Scheduling of vouchers

87. After close of the month, the task holder will tally the vouchers pertaining to his task meant for scheduling and detach at the time of

53

preparation of DP sheets, with the DV Register and sort out the vouchers consignee LAO wise. He will make necessary entries in the scheduling Register (Proforma at Appendix ‘B’) maintained taskwise dispatching one copy of the 95% bill to the consignee and all 95%and 5% bills alongwith the Inspection Notes (Copy No. 5) to the concerned LAO. Acknowledgement will be watched in respect of all vouchers scheduled to the consignee and the LAO. Rendition of Monthly Expenditure Report and Review of Sectional

Compilation with Booked Expenditure as per Punching Medium

Rendition of Certificate to Account Section on Monthly basis. 88. After the accounts of particular month is received from EDP Centre duly compiled the APO section will compare the compiled actual with the Punching Medium office copies to see that the amount has been correctly compiled as per the Punching media and all the code heads have been correctly shown in the sectional compilation vis-à-vis the amount against each code head. After rectification is over, a certificate will be rendered by the APO Section through the AO concerned to Accounts Section (Local) to the effect that the expenditure booked in the sectional compilation for the month of ………….. has been checked with the office copy of Punching Media and found correct in that all the code heads have been correctly operated the no discrepancy exist. 89 to 90. BLANK.

ANNEXURE ‘A’

(Referred to in Para 82) Flyleaf Instructions for the maintenance of the Register for

acceptance of Tender letter

Auth :- Para 4.2.1 of Supply Accounts Manual The register will be maintained in the manuscript in the Performa given below :- Sl. Supply order Name & Address Description Quantity Value of supply No. No. and Date of the firm of stores ordered order

1 2 3 4 5 6

54

2. All supply order when received will be entered in the Register and then continuity is watched.

3. The register will be submitted to the Officer-in-charge on the 10th of each month.

ANNEXURE ‘B’

(Referred to in Para 82 & 87) Flyleaf Instructions for the maintenance of the Register for

scheduling Central Purchase Vouchers to the local Audit Officer

Authority :- Para 607(b) (III) O.M. Part II (Vol. I) Object :- To keep a record of vouchers scheduled to the Local Audit Officers. The register will be maintained in the manuscript in the Performa given below :- Sl. Accounts AMT. of No. of DV No. No. of Consignee No. & date No. officer from Debit Vouchers & date Vouchers LAO to of Whom debit Scheduled whom acknowled- recd. Scheduled gement

1 2 3 4 5 6 7

2. Separate folios will be maintained for each unit/formation. Details of vouchers received from Pay and Accounts Officer will be entered in the register. The number and date of the communication under which the vouchers are scheduled to the local Audit Officer will be entered against the relevant entries in the register. As soon as the acknowledgement is received from the Local Audit Officer a suitable entry will be made against the item and the item scored through. 3. The register will be submitted to the Officer-in-charge on the 10th of each month.

ANNEXURE ‘C’ (Referred to in Para 86)

Flyleaf Instructions for the maintenance of the Register for Power of

Attorney

Authority: - Para II (D) Audit Drill Para 4.3.2 (D) The register will be maintained in the manuscript in the Performa given below:-

55

Sl. Name of Name of Validity Period of Signature No. the Firm the Bank Power of Attorney ------------------------------------- Auditor SO (A)/AAO AO

1 2 3 4 5 6 7

2. Any Power of Attorney when received from the firm will be entered in the Register and kept in the concerned file of the A.T.L 3. The register will be submitted to the Officer-in-charge on the 10th of each month.

ANNEXURE ‘D’ (Referred to in Para 86)

Flyleaf Instructions for the maintenance of the Register for Security Deposit

Authority :- Para II (E) of Audit Drill Para 4.3.2 (E)

The register will be maintained in the manuscript in the Performa given below :-

Sl. No.

Name of the Firm

AT (Supply Order No. & Date)

Amount of Security Deposit Recovered

Bill No. & Date from which Security is recovered

No. & Dt. Of the Acceptance letter for C. D.P

Dt. & Month of Refunding Security Deposit

Amt. Of Refund

Bill No. & Date

Signature

Aud SO(A)/AAO AO

1 2 3 4 5 6 7 8 9 10 11 12

2. As and when any security deposit is recovered from the Ist Bill of the firm in absence of the Security Deposit. Acceptance letter from the C.D.P the same to be entered in the Register. 3. The security will be refunded either on receipt of Acceptance letter from C. D. P. or Completion of the contract. 3. The register will be submitted to the Officer-in-charge on the 10th of each month.

56

CHAPTER XIV AO (DAD)

General

91. Defence Secretary is the Chief Accounting Authority for all transactions of the Ministry of Defence and this responsibility is discharged by him through and with the assistance of Financial Advice (D.S.) who functions for and on behalf of the Chief Accounting Authority holds over all charge in regard to smooth and efficient accounting and payment set up and is responsible for rendering certificate on Appropriation Accounts, pertaining to his charge. The Controller General of Defence Accounts carries out the above functions as the Principal Accounts Officer, through an Accounts Officer (DAD) attached to the Ministry of Defence at New Delhi under Administrative Control of CDA (HQrs), New Delhi. The AO (DAD) is also responsible for prescribing a sound system of internal audit, ensure both accuracy in accounting as well as efficiency in operation of system of internal audit, ensure both accuracy in accounting as well as efficiency in operation of the system as part of management. He has to ensure the correctness of the account, initial payment, maintenance of records and other subsidiary documents/Registers relating to the accounts of loan paid to public sector Undertakings, authorization of pension, compilation of Accounts, rendition of Monthly Accounts Returns etc. Compilation of accounts --- Ministry of Defence (Civil)

92. Punching Medium for each Cash Voucher will be prepared simultaneously when the payment enfacement is made on the voucher/bill/claim by Audit and payment Section. They will be serially numbered after the Vouchers have been passed by the Officer-in-charge. Paid Vouchers supported with three copies of each punching medium and three copies of each Debit/Credit Schedule will be sent to Accounts Section by Audit and payment group of AO (DAD). Original copy of punching medium prepared for each class of voucher on I. A. F. (CDA) 336, after verifying the correctness of Code Heads will be forwarded to CDA (HQrs), Computer Cell, New Delhi. The second copy of punching medium will be used in Accounts Section for processing the monthly compilation sheet Register against respective Code Heads as well as consolidated abstract of Receipt and charges Register (vide Appx-I & II). A separate compilation for AO (DAD) will be printed on CCO-3 to exhibit the amount compiled under each Code Head during the month. Copies of sectional Compilation will be furnished by CDA (HQrs) to AO (DAD) by 10th of the following Receipt and charges compilation Register. Wherever an error is noticed a separate Punching

57

Medium for each transfer entry will be prepared by AO (DAD) and numbered serially from a Register maintained for this purpose. Remaining third copy of P.M. will remain attached with the voucher/bill/claim. Outward settlement accounts

93. Original copy of credit schedule of licence fee recovered by AO (Cash) Ministry of Defence from the individual’s P&A will be forwarded for acceptance of Credit to Director of Estate, New Delhi under Top Sheet showing details of recovery of licence fee made from Govt. servant occupying Govt. accommodation. One copy of debit schedule on account of ‘PAO’s suspense’ Account after reconciling the amount of schedules with the figures arrived at in the monthly Compilation Register against “PAO’s Suspense” Account will be forwarded by Accounts Section to different Accounting Organisations along with a debit claim calling for a cheque in this settlement of the debit. Credit schedules will be sent to them duly supported with cheques in case no debit is to be adjusted against the credit. The acknowledgement of the cheque will be watched through outward settlement Account Register CAM-13 (vide Appx-III) and the particulars of acknowledgement of cheque when received will be noted in the Register. A monthly clearance Report of “PAO’s Suspense Head” (0/096/24) will be rendered to CGDA New Delhi by 10th of second month of the following. Rendition of monthly booklet of receipt and expenditure A/C to CGA

94. CDA CC , Meerut will be responsible on behalf of all controllers to prepare a monthly report on DAD Receipt and expenditure Account debitable to defence service estimates (Civil) and render the same to AO (DAD) Ministry of Defence by 15th of the following month for inclusion under common Heads of Ministry of Defence (Civil) and DAD. AO (DAD) will be responsible to send a consolidated report showing figures of Receipt and charges in a magnetic media monthly booklet to Govt. of India, Ministry of Finance, Department of Expenditure and C.G.A office, New Delhi by 20th of the following each month. Inward settlement claims

95. AO (DAD) will not have any exchange accounts or settlement Accounts with other Accounts Officers. All the transactions will be settled by issuing a cheque/Bank Draft on cash basis on receipt of the Inward claim relating to:- i. Air Conditioning, Electricity, water etc. from CPWD. ii. Claims from Ministry of External Affairs, New Delhi in respect of

Officers going abroad and serving in foreign Embassies etc.

58

iii. Claims from various accounting organizations regarding GPF, HBA, C. A. M. etc.

iv. Claims from various accounting organizations will be noted in a register of Inward claim (Form CAM-55) and separate files used for each Accounting Organisation. AO (DAD) will obtain the acceptance of the claims from the Ministry of Defence and on receipt of the sanctions within seven days, cheques to the Accounting Organisation will be issued. In case the claims are rejected by the Ministry of Defence the same will be returned to the Accounting organization concerned.

Maintenance of valuable register of valuable documents

96. On receipt of the cheques/Drafts from Accounting Organisation in settlement of Inward claims the same will be entered in Register of valuable Registers (Form CAM-16). Three copies of the challans will be prepared for depositing the cheques/Drafts in favour of AO (DAD) Ministry of Defence (civil) into R.B.I, New Delhi. Original copies of the challans duly receipted will be returned by the R.B.I. to the tenderor. Duplicate copy duly receipted will be returned by the R.B.I. to AO (DAD) alongwith Credit scroll/Schedule of receipt. Third copy of the challan will be kept as office copy. Duplicate copies of challans received from R.B.I. alongwith the receipt scrolls will be adjusted in Accounts Section of AO (DAD) by debiting the Head “Reserve Bank Deposits Defence” and suspense Head “Remittance in the Bank and treasures”. The fact of the adjustment of challan/T.R. thereafter will be recorded in the appropriate column of register of valuable documents. Payment scrolls

97. The R.B.I. New Delhi will forward two copies of payment scrolls alongwith paid cheques to AO (DAD) on daily basis. The serial number of each entry in the scroll will be recorded in the corresponding cheque for purpose of identification. AO (DAD) will conduct the following checks.

1. Whether the cheque is one that was issued by AO (DAD). 2. Whether the payment recorded in the scroll tallies with the amount

shown on the paid cheques. 3. Whether the payment shown in the scroll and on cheque tallies with

the amount passed for payment on related vouchers and with the entry in the register of cheques delivered (Form CAM-11). The entry in the later register will simultaneously be ticked of and the date of incashment also noted. Thereafter the scrolls will be adusted to the relevant Heads.

Receipt scrolls

59

98. Scrolls pertaining to Ministry of Defence will be collected on a daily basis from Reserve Bank of India, New Delhi in support of Cheques/demand draft/challans and cash deposited in favour of AO (DAD) Ministry of Defence. The same will be entered in the receipt scrolls register and the amount tallied with monthly figures of the Reserve Bank of India. The scrolls will be adjusted by minus debiting the Remittance into Banks Heads and debiting the R.B.I Deposits. Bank reconciliation statement

99. A Monthly statement of receipts and disbursements is received from R.B.I (CAS) Nagpur. This statement shows the monthly transactions conducted against AO (DAD) Ministry of Defence (Civil). This will be agreed with the respective entries made in the payment and Receipt scrolls registers maintained separately for R.B.I., New Delhi, Calcutta and Hyderabad. Thereafter a discrepancy statement, if any, for credit/debit will be prepared, totaled and tallied with figures shown by R.B.I (CAS) Nagpur with monthly closing balance as well as the total amount of the punching medium compiled during the month.

A copy of the communication confirming the monthly balances to R.B.I. (CAS) Nagpur with the reconciled statement will also be endorsed to C.G.D.A. Linking of Cheques

100. The paid cheques received alongwith payment scrolls will be arranged serially for their linking with Schedule-III. While pairing with schedule-III not only the entries relating to cheque number and amount will be compared but also the entries viz. name of the payee, station etc. Suitable note of the linking will be made with enfacement “Linked & Paired” on both i.e. cheques and schedule-III against the relevant entry and the paid cheques. The total amount credited/debited to Head “Cheques & Bills” will be reconciled with those appearing in schedule-III. Total of the paid cheques and cancelled cheques received during the month respectively will be reconciled with the schedule-III. The total amount of the unlinked cheques will be reconciled with the outstanding under the Head “Cheques & Bills” as per compilation. The cheques remaining unlinked in schedule-III for more than three months after the month in which the cheques were issued will be extracted and entered in unlinked cheque register with reference to list of unlinked cheques. The matter will be referred to the Bank and payee either to return the time expired cheques or explain the reasons for their non-enchashment.

60

Loans

101. Sanctions are issued by Ministry of Defence to grant loans to Public Sector Undertaking and state Govts. While scrutinizing the sanctions for loan, AO (DAD) will see that the conditions of re-payment thereof are compiled with by the loanee and should exercise a close watch over repayment of Principal and realization of interest. Any default in payment either in principal or interest by all loanees should be reported without delay to the Ministry of Defence. If the authority enforces any penal interest upon the overdue installment of principal or interest, it shall be duty of AO (DAD) to watch its recovery. Loan to state Govt.

102. Ministry of Defence will arrange payment of loans to State Govt. on receipt of sanction order from Ministry. AO (DAD) will arrange to afford credit to the State Govt. through the Reserve Bank of India (CAS) Nagpur. A copy of the advice will also be sent to A.G.’s concerned to enable him to make the necessary adjustment in the account of the State Govt. On receipt of clearance memo from RBI (CAS) Nagpur, the loan to State Govt. will be debited to major head 7601 and treated as “Charged” items of expenditure. Other loans in respect of public sector undertakings will be debited to the major head 6858, 6859 and 6853. The AO (DAD) will ensure that the amount shown and debited in the monthly account sent by the Reserve Bank of India tallies with the amount of advice sent and cheques issued by him. Repayment of loans and payment of interest thereon by State Government in respect of loans received from the Govt. of India will be arranged by the State A.Gs by issuing suitable advice to the Reserve Bank of India (CAS) Nagpur for crediting the amount to the Ministry of Defence and debiting to the State Balances. Loans register

103. The sanction order for payment of loans will be generally scrutinized and details of the amount sanctioned, the authority sanctioning the loan and the conditions of each loan will be noted in a loan register (Form CAM-29) on the page assigned to, and each entry will be attested by AO (DAD). Separate pages will be allotted for each loan and the amount of repayment, interest etc. will be noted/watched against each (or-instalments, wherever a loan is not drawn in one lump sum). It will be seen that specific provision for

61

levying penal interest exists in all the sanctions in accordance with Rule 16(2) of G.F.R. Procedure for payment of loan

104. Ministry of Defence shall present to AO (DAD) a bill on a simple receipt in a form similar to form T.R.-42 duly supported by a copy of the sanction for such payment. The AO (DAD) shall also scrutinize the bill and after due verification, a certificate will be furnished to the effect that the conditions specified in the sanction have been fulfilled and /or that a formal undertaking/agreement has been obtained from the loanee concerned. Sanctioning authority of loan should also enclose an authority letter for handing over particular cheque to the representative of the undertakings duly attesting his specimen signature. The cheque for loan shall be handed over to the representative Liaison officer of the undertaking after due verification by AO (DAD) himself and his signatures in token of having received recorded in the cheque register and the authority letter kept in the register for record. Investements

105. Investments are made by Govt. mostly in public sector undertakings. In addition to the scrutiny of the sanctions for payment on the lines specified for cheque of sanction for payment of loans and making payments of the Bill, the AO (DAD) shall also ascertain that Govt. has actually received shares against the investment(s) made by Government in the concerned undertaking/company. A record of investment made by Govt. in public undertakings shall be kept in a Register of Investments (Form CAM-60) Payment of investment to public sector undertakings

106. Ministry of Defence shall convey the sanction of the President to the payment of investment on account of Govt. of India’s contribution towards purchase of equity shares of Rs.100/- each to be issued by the undertakings. The Ministry of Defence shall present a bill on a simple receipt on form-42 duly supported by the sanction for payment of investment to the public undertakings. Ministry of Defence shall also enclose an authority letter for handing over a cheque to liaison officer of the undertaking duly attesting his specimen signature. The cheque for investment shall be handed over to the representative of the undertakings by AO(DAD) himself and his signature obtained in a Register and the authority letter kept in the register for record.

62

Grant-in-aid

107. Grants-in-aid is a sanction to public bodies, Institutions etc., and conditions are contained in rules 148 to 151 of G.F.R. of Def. sanctions Grant-in-aid to the Institute for Defence studies and Analysis subject to the following conditions:

1. The funds will be spent exclusively for the purposes for which they have been sanctioned.

2. A progress report and audited statement of account showing the expenditure incurred by the Institute during the year will be forwarded by the Institute to the Govt. as soon as possible together with Certificate from the audit to the effect that the grant was utilized for the purpose for which it was sanctioned.

3. The account of the Institute should be open for the test check by the Comptroller and Auditor General of India at his discretion.

4. The Institute will maintain a register in form GFR—19 of the permanent and semi-permanent assets acquired wholly or mainly out of Govt. Grants.

Payment of bill

The Bill alongwith the sanction of Grant-in-aid will be submitted to AO (DAD) by the AO (Cash) for payment. The AO (DAD) after carrying out necessary checks will pass the bill and issue a cheque. Budget Estimates and Revised Estimates

A.O. (DAD) will prepare Budget Estimates and Revised Estimates for Demand in respect of Min. of Def. (Civil) for the following Major Heads 0049, 0050, 0071, 0210, 0216, 0235, 2235, 2049, 7610, 8005 and 8011 and will submit the same to C.G.D.A. Finance Accounts

108. General: The Finance Accounts of the AO(DAD) comprises the receipts and outgoings of the Min. of Def. for a particular year together with financial results disclosed by different accounts and other data coming for examination viz. Public Debt and other liabilities and assets as worked out from the balances recorded in accounts. It supplements the accounts separately presented in the form of Appropriation Accounts for grants and charged Appropriation. The finance accounts submitted to Govt. through C.G.D.A. is a presentation of the General Accounts of Govt. to the Parliament. The Finance Accounts are divided in two parts viz. Part-I and

63

Part-II. Part-I comprises the summarized statement in respect of Revenue, Capital, Debt, Deposit, Suspense and remittances transactions and contingency Fund. Part-II comprises the detailed statements in respect of these transactions and other related statements. A.O. (DAD) will prepare statement No. 3, 4, 5, 10, 11, 13, 14, 15, 15-A, 16, 17, 17-A. The detailed instructions for the preparation of these statements are contained in the controller General of Accounts, Lok Nayak Bhawan Circular No. G-25020/1/82/CGA/FA/AR 45 & 13/765 dated 27-3-82 and No. G-25027/1-84/MF-CGA/FA/86-87/419, dated 24-4-87. Annual review of balances

109. At the close of financial year, A.O. (DAD) shall review and verify the balances under Debt, Deposit and Remittance heads and ascertain wherever necessary whether the public undertakings/State Govt. by whom the balance is owned or to whom it is due, admit its correctness and in case of balances due to State Govt. how far they are readily recoverable. A.O. (DAD) will prepare statements No. 5 & 13 and furnish the same to CGDA. The detailed instructions for the preparation of these statements are contained in Para 13.13.3 of Civil Account Manual and CGDA letter No. A/I/9941/Fest. Adv. Dated 22-7-88 and Controller General of Accounts OM No. 625018/1/88/MF-CGA/FA/249, dated 11-4-88. Grant Statement

110. As prescribed in para 11.3.1 of Civil Account Manual (Amended by CS No. 144) the Grant Statement of Min. of Def. with reference to Demand for Ministry of Defence (Civil) will be prepared by A.O. (DAD) Major Head-wise. After taking into consideration supplementary grant, reappropriation of savings in the financial grant, reappropriation of savings in the financial year and surrender of savings and sent to CGDA for onward transmission to CGA. Appropriation Accounts

111. Appropriation Accounts means the accounts which indicate the expenditure (both voted and charged) of the Govt. for each financial year compared with the amounts of voted grants and charged appropriations for different purposes as specified in Schedules appended to Appropriation Act passed by the Parliament. These accounts intend to disclose:--

a. That the moneys indicated therein as having been disbursed where legally available for and applicable to the service or purpose to which they had been applied or charged.

64

b. That the expenditure conforms to the authority which governs it. c. The effects of reappropriation ordered by the Min. of Def.

If any money has been spent during a financial year in excess of the amounts of voted grants/charged appropriation, the circumstances leading to such an excess will be disclosed through these accounts. (Authority: para 11.1 Civil Accounts Manual) A.O. (DAD) shall prepare Appropriation Accounts in the prescribed form as laid down in para 11.3.1 of Civil Accounts Manual Head-wise Appropriation Accounts for Demands for Grants for Ministry of Defence (Civil) as for as it relates to them. Each account will also be accompanied by the following certificates and statements:--

a. Certified that to the best of my knowledge and belief, the expenditure included in the Appropriation Account……………………. Union Govt. (Civil) for the year……………….. has been sanctioned by the Competent authority.

b. Certified that all expenditure incurred during the year……………………….. relevant to Grants/Appropriation has been included in its Appropriation has been included in its Appropriation and no amount pertaining to has been left un-adjusted under any Suspense Head for want of paid vouchers etc.

Statement of Central Transactions

112. A.O. (DAD) will prepare the statement of Central Transactions of Demand for Grant and furnish to C.G.D.A. every year in the format prescribed by the C.G.A. This statement will contain the following statements:-

1. Statement showing the State-wise bifurcation of lump-sum figures of loans and advances paid under Major Head 7601.

2. Statement showing the State-wise bifurcation of lump-sum figures shown against Major Head “0049-Interest from State Govt.”

3. Statement showing details of interest receipt corresponding to loan Heads 6216, 6853, 6858 and 6859.

4. Statement showing the dividends paid up by the undertakings during the year under Major Head “0050”.

The statement contain a certificate that the Appropriation Accounts in respect of Grant of Min. of Def. for the year ………………have been reconciled with the statement of Central transaction of the Min. of Defence. P. A. O. Suspense

65

113. A. O. (DAD) will prepare a monthly report of PAO Suspense and furnish the same to CGDA in the Prescribed Proforma vide C.G.D.A. letter No. A/IV/12273/PAO/Sus./86-87 dated 10-3-89 given below:-- Proforma for the month of ……………………………………….

Opening Balance

Fresh Addition on

Sl. No.

Name of the PAO, AG/CDA etc.

Code Head

Debit

No. of cases

Credit No. of cases

Debit No. of cases

Credit No. of cases

1 2 3 4 5 6 7 8 9 10 11

Clearance during the month Closing Balance Debit No.of

cases Credit No.of

Cases Debit No.of

Cases Credit No.of

Cases

12 13 14 15 16 17 18 19

114 to 120 BLANK.

66

Statement No. 5 (Referred to in Para 109) Summary of Balance as on ………………………………………………………… Debit Balance (Name of Account……………………………….. Credit Balance Consolidated Fund Govt. Accounts Setcor F—Loans and Advances Loan & Advances to State Govt. Opening Balance as on…………… Closing Balance as on…………………… Other Loans

Opening Balance as on…………… Closing Balance as on…………………… Public Account

Sector I – Small Savings Provident Fund etc. Opening Balance as on…………… Closing Balance as on…………………… Sector K—Deposit & Advance Deposits

Opening Balance as on…………… Closing Balance as on…………………… Advances

Opening Balance as on…………… Closing Balance as on……………………

Sector L – Suspense & Misc

Opening Balance as on…………… Closing Balance as on…………………… Other Accounts – Permanent ……………… Cash Imprest (Civil)

Opening Balance as on…………… Closing Balance as on……………………

RESERVE BANK DEPOSITS

_________ _________ _________ Total Total _________

67

ANNEXURE I (Referred to in Para 92)

Consolidated Abstract Register Major Head

Month Progressive

Month Progressive

Month Progressive Month Progressive

CODE–Details Total Major Head

ANNEXURE II (Referred to in Para 91)

Compilation Sheet Register for Posting

CHARGE RECEIPT

Sl. No.

Code Head 0/095/28

Code Head 0/095/30

Code Head 0/095/31

Code Head 0/095/32

Total Charges

Code Head 0/095/01

Code Head 0/095/02

Code Head 0/095/03

Code Head 0/095/04

Total Receipt

Total Total Total Total Total Total Total Total Total Total

ANNUAL REVIEW OF BALANCE (referred to in Para-109)

STATEMENT NO. 13

(Referred to in Para 109) Grant of Receipt, Disbursement and Balance under Head of Accounts – Debt, Deposit and Revenue Heads and Contingency fund

Head of Account Major & Minor Head of Account

Opening Balance on………

Balance adopted on Proforma basis

Revised opening Balance

Receipt during the year

Disbursement during the year

Closing Balance as on……

68

ANNEXURE-C

(Referred to in Para 109) Govt. Accounts for the year…………………………………………………………. Debit Particular Credit

A- Opening Balance B- Reserve Receipt Taxes on Income other than Corpn. Tax. C- Other Interest Dividend, Receipts of Central Govt. D- Interest Payment Servicing of Debt. E- Administrative Services.

F- Pension Contributions – Recoveries towards Pension and other retirement benefits.

G- Other Receipts H- Contribution to CGHS I- Receipts from Govt. residential Buildings J- Social Security and Welfare Central Govt. Emp. Ins. Scheme. K- Industry -- Subsidiary L- Capital Account and Economic Services. Total --------- Total --------- Account of Loan of Rs.________________________ sanctioned under letter No. 1. Name of the loanee 2. Postal Address 3. Rate of Interest Normal-Penal _______Concessional____________ 4. Interest payable_______________Commencing from __________ 5. Principal to be Refunded in _____________ Installments __________ Commencing from _____________ 6.Amount of Installment of principal/equited Installments of Rs. _____

Amount of Principal Bank Draft No. & date

Date of payment

Month of adjustment Opening

Balance Amount due

Amount Paid

Balance outstanding

13-13 CGDA/ND/95

69

REGISTER OF INVESTMENT (Referred to in para 105)

Sl. No.

name of the Company/Corpn./Coop. Society in which investment made

Number and Date of letters of Min. / Deptt. Sanctioning the Investment

Amount

Cheque/DD No. Date of issue

Year of Instt.

Type of share/Debentures

No. of shares/ Debentures

Face val. Of each/share/Debentures

1 2 3 4 5 6 7 8 9

Date of Min. or Deptts., letter acknowledging share Script progressive amount

Total Amount Invested till date in the company

Percentage of Govts. Investment to the total paid up Cpital credited to Govt. A/c

Amount of Interest received in regard to Debenture and Credited to Govt. A/c

Particulars of Cheques/DD received & referred to in Col. 12 or 13

Remarks

10 11 12 13 14 15

STATEMENT NO. 17 (Referred to in para 108)

Statement of loan and Advances showing the amounts advanced and Interest received during the year ……………………………… and the balance of such loan and advances at the commencement and close of the year. Head of Account

Balance of

Amount advanced

Amount repaid

Balance O/s at the

Interest received

Remarks

70

Major Head/Minor Head of the Account

previous year

during the year

during the year

close of the year

during the year

1 2 3 4 5 6 7

STATEMENT NO. 17-A

(Referred to in para 108) Statement of loan and Advances showing the balance at the commencement of the year…………….. Major Head Balance as on 1st April

STATEMENT NO. 4

(Referred to in para 108) Guarantee given by the Central Govt.

Sl. No. Name of

Institution place where the concern is situated

Maximum Amount of Guarantee for which Govt. loan entered into agreement/Maximum Amount of Guarantee

Sums Jurated outstanding as on…….. and name of the currency viz. Dollar/Rs. Etc

Nature and extent of Guarantees (Cash credit letter of credit etc.)

Amount paid to copy during the year ……….. in pursuance of guarantee

Remarks

1 2 3 4 5 6 7

ANNEXURE A TO STATEMENT NO.3 (Referred to in para 108)

Amount outstanding as on ………………………………….

71

Sl. No. Ministry/Deptt. Sanctioning the loan

Name of Units Companies/Non Govt. Institutions

Purchased Interest Amount if any recoverable after the… _________ (Year)

Period

1 2 3 4 5 6 7

STATEMENT NO.3 OF MINOR GOVT. FINANCE ACCOUNT FOR (Referred to in para 108)

Loans and Advances by Union Govt. Sl. No. Category

of Loan Balance of previous year

Paid during the year

Repaid during the year

Balance as on…………..

Net. Additions of the year

1 2 3 4 5 6 7

ANNEXURE ‘B’ STATEMENT No. 3 (Referred to in para 108)

Details of loans and Advances to the State Govt. in which the amount

of Purchase and Interest remained in arrears at the end of the year Sl. No. Ministry/Deptt.

Sanctioning the loan

Name of the State Govt.

Amount as on Principal

Outstanding ……………… Interest

Amount any recovered after the year

Earlier period to which the arrear relates

1 2 3 4 5 6 7

72

STATEMENT NO. 11 FOR THE YEAR …………………………. (Referred to in para 108)

Sl. No.

Name of the undertaking

Year of the Investment

Type of share/Debenture

Investment Number

Total Amt. Investment upto the end of year with year wise break up

Face Value of each share

%age of the Govt. To be paid total up to Capital Debenture

Amount of Dividend/ Interest recovered during the period and pd. To which relates

Dividend for year but not credited to Govt. account during the year

Remarks

1 2 3 4 5 6 7 8 9 10 11

ANNEXURE (Valuable Register) (Referred to in Para 108)

Sl. NO. From

whom received

Detailed description

Amount Sign. Of Adtr.

Sign. Of A.A.O.

Compiled to Code Heads TE No. & month

Receipt No.

Remarks

1 2 3 4 5 6 7 8 9

73

REGISTER OF INWARD CLAIMS (Referred to in Para 4)

Transactions arising in the Accounts of …….. adjustable in the account of ………… Deptt. Sl. No.

No. & Dt. Of the letter with which the A/c was received

period of A/c

Receipt

Payment Net Amt. Due from other party

Net Amt. Due to other party

Particulars of Cheque/ Draft received with the inward claim

Amount No. & Dt. Of the letter forwarding Draft/cheque to other party

Particulars of the Draft/Cheque to other party

1 2 3 4 5 6 7 8 9 10 11

Initial of the A. O.

Amount placed under AO Suspense & referred to Deptt. Officer

No. & Dt. Of the TE clearing the suspense

Date on which the amount appeared in the Bank Scroll (For Cheque/Draft received from the party

Initial of A.A.O.

Remarks

12 13 14 15 16 17

74

REGISTER OF INWARD CLAIMS (Referred to in para 93)

Transaction arising in the Accounts of the …………………….. which are adjustable by ……………………………

Vr. No. & Date Challan No. and date

Receipt/ recoveries

Payments

Net Amount of the claim to be preferred

Net amount due to the above party

No. & date of the cheque issued and the amount due to the other party

Whether figures under Cols. 2 & 3 talling with the ledger figures if not, reason of variation

No. & Date of the cheque received

1 2 3 4 5 6 7 8

No. & date of letter forwarding the claim

No. of the challan received with Receipt Draft for credit of the Cheque

Initial of the A. O.

9 10 11

75

STATEMENT OR ANNEXURE (Referred to in para 101)

………………In the Govt. of India, Min of ………………………………. Dated………………..

Details of payment 1. Amount paid 2. Date of payment 3. Advance No. & Date of RBI 4. Month of Adjustment 5. Initial of the PAO

ACCOUNT OF INTEREST

Amount due

Interest on over due instt. Including previous balance

Total Amount due

Total Amount due

Amount paid

Balance outstanding

Initials of the J.A.O.

Remarks

1 2 3 4 5 6 7 8

REGISTER OF CORRECTIONS POSTED No. and date of correction slip

Para affected

Initials of person posting correction slip

No. and date of correction slip

Para affected

Initials of person posting correction slip

76

GMGIPN – 13 CGDA/ND/95—S. 1-21-3-96,890

Defence Accounts Department - PCDA, New Delhi · 3 CONTENTS CHAPTER PAGE I. General 4 II. Record...

Documents

Transcript of Defence Accounts Department - PCDA, New Delhi · 3 CONTENTS CHAPTER PAGE I. General 4 II. Record...