CHAPTER XIV

INITIAL ACCOUNT OF REVENUE AND WORKS EXPENDITURE

1401. Introduction.--The expenditure incurred by the officials of the Engineering department in the discharge of the duties and the responsibilities is brought to account through the various returns accounts and bills submitted by them. These returns, accounts and bills which constitute the initial accounts of the depatrments are dealt with under the heads `Cash', `Stores', 'Adjustment' and `Departmental Registers' which are the main sections into which this chapter has been divided.

1402. The rules in this chapter are not applicable to the initial accounts of workshops attached to Bridge. Signal & Electrical Departments. The method of accounting in such Bridge. Signal and Electrical Workshops will be similar to that prescribed for the Mechanical Workshop of the Railway and the detailed rules for such workshops will be laid down by the Financial Adviser and Chief Accounts Officer in consultation with the concerned head of the Departments.

Cash Payments

1403. Imprest.--The payments which the Executive Engineer has usually to make are arranged by the Accounts Officer. Normally, therefore, all initial accounts of cash expenditure are kept in the Accounts Office. However, for the purpose of making certain specified class of payments and also to enable the Engineer to meet petty office expenses and emergent disbursements which cannot be foreseen, the General Manager of a Railway, may with the concurrence of the Accounts Officer sanction an imprest or standing advance of a fixed sum of money to him. The General Manager may also redelegate his powers to sanction cash imprest, to authorities subordinate to him on such condition as he may think fit to impose.

1404. The following rules will govern the sanction and operation of an imprest to an executive officer :-

• (i) The amount of the imprest money must not be larger than is absolutely necessary. It should be the lowest sum adequate to meet the type of expenses referred to in the foregoing para.

• (ii) The arrangements for the safe custody of money rests entirely with the imprest holder but he should at all times be ready to produce the total amount of imprest in vouchers or in cash.

• (iii) The imprest should be kept in duplicate in Form given below (E. 1404) and the original with 1 the supporting vouchers forwarded to the Accounts Officer for recoupment from time to time. The duplicate will be retained by the imprest holder. The imprest account should ordinarily be closed by the 27th of the month and recouped before the end of the month so as to ensure as many the as possible, of the months, transaction being accounted for in same month.

• (iv) Should any item in the imprest account appear to the Recouping Officer to be open to objection, the imprest should nevertheless be recouped in full and the items placed under Suspense (Miscellaneous Advances), until the objection is removed or the amount is made good by the imprest holder.

Form E.1404

Designation…………………….

1417. Monthly Stores Returns.-At the close of each month, separate returns showing receipts, issues and balances of all items of imprest and surplus stores operated on during the month should be submitted by each engineering subordinate to the Divisional Office through his Assistant Engineer. These returns are referred to in this chapter as Imprest Stores Accounts and Surplus Stores Accounts and should be submitted in the form printed below (Form E.1417). Both the accounts should, as far as possible, be supported by the various receipt and issue vouchers, i.e., Issue Notes, Adjustment Memo and Advice Notes. These accounts should bear a certificate from the subordinate concerned that no stores other than those included in the accounts have been received or issued during the month and that the balances of all items of stores not included in the accounts remain the same as at the end of the previous month.

Form E. 1417

……………........ RAILWAY

ACCOUNT OF ENGINEERING MATERIALS

Permanent Way Imprest for the month of ....20..

Division ……………………………. Section …………………………

        Forwarded to ………….                                            Signature………….

        Station/Office ………….                                           Designation ………….

1418. Cheek of Monthly Stores Returns-In the Divisional Office, the Imprest and Surplus Stores Accounts (Form E. 1417) received from the subordinates should be checked to see--

(i)         that the opening balances of the items appearing in the accounts agree with the closing balances of the accounts in which the items last appeared

Form E.1422

Detailed head¾ Permanent-way/other than Permanent way

1425. Half-yearly Review of Imprest and Surplus Stores.- Divisional Engineer should review periodically the position in regard to imprest and Surplus Stores in other Division. The review should include review of the scales of Imprest with reference to actual issues as indicated in 1811 S and 1842 S (both moving and non-moving items). For this purpose twice a year on the 30^th September and 31^st March each subordinate should prepare a statement in Form E. 1425 giving details of imprest and surplus Stores with him on those days and submit it by the 5^th of the following month to the Divisional Officer through his Assislant Engineer. In the case of Imprest Stores no statement needs be prepared. Instead the Divisional Office will supply cyclostyled statement (standard forms) to the subordinate on which a certificate will be recorded by the Supervisor about the completeness/deficiencies and action taken for recoupment.

Form E. 1425

. . . . . . . . RAILWAY

HALF-YEARLY STATEMENT OF ENGINEERING MATERIALS

Imprest/Stirplns/Rescive Material in the custody of …………… for the half-year ending ……………..

…………………………………………………………………………….

1426. In the Divisional Office, these statements should be test-checked with the monthly Imprest and Surplus Stores Accounts (Form E. 1417) submitted by the subordinates and discrepancies, if any, taken up with them. After test-check, they should, if necessary, be consolidated and separate Abstracts of Imprest Stores and Surplus Stores for the entire division prepared.

1427. A copy of the half-yearly statement of surplus permanent-way stores (Form E. 1425) for the entire division should be furnished to the Headquarters Office. In the Headquarters Office, these statements should be reviewed by the nominated officer, who will bring to the notice of the Chief Engineer accumulation of Permanent Way materials in the surplus stores accounts of any division.

1428. Departmental Stock-verification of Stores Balances.--_It is desirable that there should be a frequent reconciliation of the balances as shown in the numerical ledgers kept by the subordinates (and as brought out in the half yearly statements) with the actual quantities in hand. The Divisional Engineer should therefore arrange that approximately one-sixth of the stock under each subordinate is verified by actual count each month, so that the whole divisional stock is verified at least once every six months. This verification is in addition to the stock verification made by Accounts Stock-verifiers. All discrepancies should be enquired into. Discrepancies, if small i.e., not amounting in value to more than Rs. 100 may, after the Divisional Engineer has satisfied himself by investigation that no irregularity has occurred, be adjusted to final heads under his orders. If the amount involved exceeds this amount the matter should be reported to higher authorities for orders.

1429. Surplus materials held on line.--_After a work is physically completed and when Completion Report is to be finalised, released serviceable second hand Permanent-Way materials, both standard and non-standard and scrap shall be initially booked under suspense head. "Engineering Stores- -Surplus Permanent Way". This transfer shall be carried at rates fixed for this purpose which should be periodically revised in accordance with the instructions laid down in the Indian Railway Code for the Stores Department.

1430. So long as the materials are held under the suspense head "Engineering Stores Surplus Permanent-Way", the responsibility for disposal will rest with the Engineering Department at Headquarters Office. The nominated Officer of the Headquarters Office will issue appropriate instructions to the Divisional Engineers either for transfer thereof to some other works or declare them as surplus for disposal.

1431. The details of items which should be disposed off ex-site on line and those which should be transferred to nominated Stores Depot for disposal may be fixed by the Railways in accordance with 2313 and 2314-S

1432. In case of materials which are declared as surplus to requirements and disposal ex-site has to be arranged, the materials should, after necessary survey by Committee, be transferred to the suspense head "Engineering StoresSurplus awaiting sale". The responsibility regarding the disposal of surplus items booked under this head will devolve on the Stores Branch which will arrange disposal as envisaged in Chapter XXIII of the Indian Railway Code for the Stores Department.

1433. Provisions contained in paras 1429 to 1432 will apply mutatis mutandi for the disposal of materials other than permanent way found surplus to works or released from works. In this case as well suspense head of account "Engineering Stores-Surplus-other than Permanent way" and "Engineering Stores Surplus awaiting sale" will be operated.

Charged-off Stores

1434. Charged-off Stores will comprise

• (i) consumable stores, such as cotton waste, jute, oil, grease, etc., issued for ordinary repairs and maintenance.

• (ii) petty stores, such as material for patch-work repairs to buildings.

• (iii) Stores obtained for specific works; and

• (iv) tools and plant.

1435. Consumable and Petty Stores.--A monthly scale of consumption of consumable stores should be fixed for each engineering subordinate by the Divisional Engineer concerned with the approval of the Chief Engineer, Within the limits of the approved fixed scale, each subordinate may obtain direct on requisition from the prescribed Stores Depots, such items and such quantities of consumable stores as are actually required by him. As regards petty stores engineering subordinates may be permitted to keep a small stock of materials such as ballast, bricks-bats, surkhi, lime, sand, cement, etc. for use on spot renewals and patch work repairs to buildings for which no materials at site account is maintained. The cost of such materials should be charged off to Revenue. At the close of every month, each subordinate should make out a (numerical or quantity) statement (in Form E. 1435) of receipts, issues and balances in hand of petty stores, and submit the same to the Divisional Office through the Assistant Engineer together with the Issue Notes received from the Stores Depot.

Form E. 1435

PETTY STORES RETURN

for ……………19

Dated……………                                                       Signature……………..

                                                                                     Designation……………

Note¾ If numerical ledgers are kept for petty stores by engineering subordinates the monthly returns may at the discretion of the Chief Engineer may be dispensed with.

  In the Divisional office, the petty stores returns received from the subordinates will be checked with the sanctioned scales of consumable stores and the relative issue notes. Any discrepancies between the summaries of issues received from the Stores Accounts Officer and the issue notes received from subordinates should be promptly taken up with the depot concerned. If there is an accumulation of any item of stores with no certainly of early consumption, the Divisional Engineer should prohibit the subordinates concerned from requisitioning further for such items till the accumulated stores are consumed or take other suitable action to relieve the accumulation.

Stores obtained for Specific Works

1436. Materials at site.--_Materials obtained for specific works should be kept outside the accounts of any other category of stores. Such stores should be separately requisitioned for by the Executive Officers and arranged to be despatched to the sites of works. Materials other than petty consumable stores issued to a work, the account of which is kept by sub-heads in the Register of Works, if not consumed on, the work immediately on receipt at the site work of should be temporarily held at charge of a sub-head of work known as the "Materials-at-site Account". The estimated value of works for which account is to be kept by sub-heads in the Registers of Works will be Rs. 3 lakhs in the case of Track Renewal Works and Rs.1 lakh for other works.

1437. For the purpose of the rules contained in the following paragraphs :-

(i) Materials when obtained specially for a particular work or when released in connection therewith, so long as they are under the control of the authority in executive charge of that work, be deemed to be 'Materials-at-site'. 

(ii) Materials released from works, if not re-used thereon will be deemed to be "Surplus Stores".

(iii) The term "Sub-work" will be deemed to mean any distinct unit of a work that is sufficient large or important to be-kept distinct for purposes of accounts.

(iv) The term "Sub-heads" whether with reference to accounts or estimates of works, will be deemed to mean the sub-divisions into which the total cost of the work (or its sub-works) is divided for purposes of financial control and statistical convenience. The various descriptions of work that have to be executed in the course of a work are usually though not invariably, the sub-heads of it.

(v) The term "Register of works" will be deemed to mean the register kept to record collectively the expenditure incurred in the unit of executive charge on each work during the year (para 1472).

1438. No material should be obtained for a work unless the incurrence of the expenditure or liability involved thereby is authorized under the rules nor should they be obtained in excess or advance of requirements due allowance being made for all factors that may properly be taken into consideration. In case where materials obtained specifically for a work are left over on the completion of the work or are found surplus, such materials should under the orders of the Executive Engineer in charge of the work be either returned to Stores Depot or transferred to some other works which are likely to use them or to Engineering Stores Surplus Permanent Way or Engineering Stores Surplus-other than Permanent Way. The Executive Engineer should certify on the completion report of each work (Chapter XVII) that all materials originally charged to the work but not used up have been returned to Stores or transferred to some other works or Engineering Stores Surplus Permanent Way or Engineering Stores-Surplus-other than Permanent Way and the accounts of the work credited with their value.

1439. Materials required for a work may be obtained either from Stores or by purchase or transfer. In the case of direct purchase, the responsibility as to quality will devolve on the Purchasing Authority, unless arrangements have been made for inspection and passing by other agency. The authority in Executive-in-charge of the work should be responsible for holding in safe custody, for controlling consumption and to the extent prescribed hereinafter, for the correct accountal of all materials at site of such works, also for the return to stores, transfer or disposal otherwise to the best advantage of the Railway, of any materials at site which, it appears certain, will not be consumed on that work.

1440. Custody of Materials.--The materials held under. "Materials-at-site Account" can be either under the custody of the Supervisor who is executing the work himself or is kept in Engineering Stores Depots under the custody of a Depot Stores Keeper or Stores Supervisor. In both the cases only a numerical account will be maintained of the stores held.

Materials-at-site of Works for which Accounts are kept by Sub-heads in the Register of Works

1441.1. Daily Record.--The estimated value of the works for which accounts are kept by Sub Heads of the register of the works will be provided for in para 1436. A daily numerical record of receipt and issues of the material shall be maintained by the stock holders in the form E-1441.

1441.2. To cater for leading, classification and stacking of P. Way material the accountal should be made in form E-1441 as follows :--

(i)            FOR PWI/O. L.

               The accountal should be made within 15 days.

(ii)           FOR PWI TRACK RENEWAL/CONSTRUCTION

               The accountal should be made within 15 days.

(iii)          FOR PWI/GC

               The accountal should be made within 30 days.

Form E. 1441

. . . . . . . . . . . . . . . RAILWAY

MATERIALS-AT-SITE RECORD LEDGER FORM

Division ……………………….                                Station ……………………

Received for the work  B.F……………….     From page No. …………………

Carried forward B.F …………………….       To Page No. …………………..

1456. Tools and Plant for Maintenance.- A scale of tools and plant will be fixed for each gang under a Permanent Way Inspector; and the total with his gangs plus a small reserve in his own godown will form the scale fixed for each Inspector. A scale of tools and plant will similarly be fixed for other engineering supervisors. On issue to the permanent way and other engineering supervisors, the cost of these tools and plant is charged off finally. It will, therefore, be necessary for the supervisors to maintain a tools and plant register  (Form E.1462) and submit it after the close of each financial year to the Divisional Officer for check.

 Form E.1456

.............................. RAILWAY

REGISTER OF TOOLS & PLANT

Department ……………. Division……… Office……….. Sanctioned strength……….

Authority…………………

1457. The permanent Way and other Engineering Supervisors should not retain in their hands any tools in excess of the number allowed in their scale. Should additional articles come into stock from any stores, the order of the Divisional Officer should be obtained through the Assistant Engineer for their disposal. If replacement of worn out, damaged or lost articles is required a requisition for the articles required should be submitted to the Divisional Office with an explanation of the circumstances in which the replacement is applied for. The Divisional Officer will after satisfying himself as to the correctness of the explanation, approve the requisition and pass orders for the disposal of worn out or damaged tools and for the recovery or write-off of the cost of lost tools.

The tools and plant register received in the Divisional Office should be checked completely as regards arithmetical accuracy. The correctness of all items of receipts and issues should also be completely checked with relevant Issue Notes, Advice Notes, sanctions or writes-off etc. and the discrepancies taken up. The registers should then be put up for the information of the Divisional Engineer who will, if he considers necessary, order any redistribution of the tools.

 Toots, Machinery, and Instruments procured for works

1458. In the case of tools, machinery and instruments procured for works, apart from the periodical returns, which may be prescribed by the Chief Engineer. A yearly balance return in the Form E-1456 should be submitted by the Executive Engineer to the Chief Engineer. A record may be kept in the same from by each Assistant Engineer or Supervisor of all tools, machinery and instruments in his custody.

1459. Proper Accounts of tools and plants issued for use by the subordinates of the sub-division or temporarily lent to contractors, as well as those of articles lent to local bodies and others under competent authority should be kept in a manuscript register showing:--

(i)         the person to whom tools and plants have been lent,

(ii)        description of tools and plant,

(iii)       elate of issue, and

(iv)       elate of return.

These accounts should be reviewed periodically with a view to see that articles are returned without unnecessary delay and in good condition. This applies also to tools and plants sent out for repairs. On completion of works a review should be made of the available tools, machinery and instruments and action as required. and indicated in  Chapter XIX  of the Stores code be taken.

Adjustments

1460. Adjustments in the accounts of an Engineering Division will be necessary for:--

(i)         the liquidation of liabilities not payable in cash under the rules or the realization of outstanding credits otherwise than by receipt of cash.

(ii)        the transfer of debits and credits originally borne against a suspense head to the proper works or accounts heads.

Under the first category come such items as freight bills, work done bills received from workshops. Railway printing presses, ballast train charges, debits received from other Railway and the departments on account of stores supplied or services rendered (through Advices of Transfer Debits/Credits) etc. All transactions concerning the issue of stores from stock, the transfer of materials from one work to another and the clearance of items of debits and credits placed under the suspense heads come under the second category.

1461. Adjustment Memo.--In carrying our adjustments referred to in the preceding para the officer or subordinate initiating an adjustment should fill an Adjustment Memo (in the form given below, from E-1461) as far as he is able to do so and forward it to the Divisional Office for completion and further action. Reasons for the adjustment should invariably be recorded in such sufficient detail as to establish clearly the correctness of the necessity for adjustment. All Adjustment Memo requiring acceptance of third party should as far as possible be got accepted by such party before submission to the Divisional Office. If a debit is to be raised against another Division. Railway or Department, suitable action should be taken by the Divisional Office to obtain the acceptance of the parry concerned and to raise the debit through the Accounts Officer. If another Division or Department of the same Railway is affected the Adjustment Memo should be sent to the officer concerned who should fill in the debit column and pass it on duly completed to the Accounts Officer returning the counterfoil to the originating officer. If another Railway or State is concerned, the officer to be credited having obtained the debited officers acquiescence in the charge should send the Adjustment Memo to the Accounts Officer for the necessary transfer debit to be raised. Necessary entries in the respective Registers of Expenditure shall be made by the Accounts Officer.

 Form E. 1461

Department .................. ............... RAILWAY                        Office ………………

ADJUSTMENT MEMO BY THE ……..…………. SHOWING ADJUSTMENT TO BE MADE IN THE ACCOUNTS FOR THE MONTH OF ............ 19 ............

1462 Adjustment Memo may be used in three different ways; first for advising an adjustment to be made within accounts of the division itself secondly, for advising certain adjustment between two divisions or departments of the same Railway; and thirdly, for advising an adjustment to be made with another Railway administration. The following procedure should be followed in these cases:--

(1)        In every case the officer whose account is to receive credit should fill up the column showing the credit and if the adjustment is to be made in his own division, he should also fill in the column showing the debit. If another division or department or another Railway or  State Government is involved the office to be credited should send the Adjustment Memo to the Accounts Officer for the necessary transfer debit to be raised. Adjustments relating to stores transactions for which allocation is furnished should be adjusted by tile responding Accounts Officer in the same month's account in which it is recorded in the books of the originating unit in terms of para 410-A.

(2) The entries in the register of expenditure will be made by the responding Accounts Officer when filling up the debit columns and by the Originating Accounts Officer on receipt of the accepted counterfoil.

1463. Adjustment Bill--Adjustment of charges incurred by one departmental officer on behalf of another should, as a rule, be made on the basis of accepted bills. The form on which bills for acceptance should be prepared is given below. (c.f. para 1138-A).

 Form E. 1463/A 1138

BILL FORM

To,

………………

Name of the party.

Dear Sir

                                                          Subject...............................

            Reference.- Agreement dated........................

The following amount has become due to be paid to the Railway:--

Please remit the amount shown in column 4 by cash/cheque/Bank draft to the Chief Cashier/Divisional Cashier .................... on or before .................... under advice to this office falling which interest @ % will be charged on the outstanding balance. The Amount is creditable to the Head of Account .......................................

Please acknowledge receipt                                                  Yours faithfully

Error & Omissions Excepted                                                                        Accounts Offer

                     Designation……..

Copy forwarded to (Executive Officer) for information and necessary action.

1464. The bill (form E. 1463) besides being used for adjustment transactions may also be used for preparing claims which are settled by cash recovery. In either case, a register of bills recoverable should be kept in the following form with a view to watch recoveries. (c.f. para 1139-A).

 Form E. 1464/ A1139

REGISTER OF BILE RECOVERABLE

1.         Name of the party ……………………………….

2.         Particulars of the charges…………………….

3.         Reference to agreement etc…………………….

4.         Amount Recoverable………………………….

5.         Period viz. Monthly, Quarterly, Half-yearly, Annually .....…………..

6.         Due date of payment……………………….

7.         Accounts Officer (Initials) ........................................

1465. Carriage Bills.--The bill for freight charges should be supported by a detailed carriage bill in the following form (Form E. 1465).

 Form E. 1465

CARRIAGE BILL

Bill No. ……………….

To,

            The ....................................... Railway

For carriage charges as under during the month of ..........................20.

1466. Ballast Train Returns.--A monthly or fortnightly return in the form given below, showing the working, of each ballast train will be prepared for the purpose of debiting the necessary charge on account of ballast train freight to the works or heads of revenue working expenses concerned. This return will originate from the office which controls the movements of engines and drivers and will be sent to the Divisional Engineer for completion and transmission to the Accounts Officer for effecting the necessary adjustment.  "The ballast train charges should be adjusted by debit to the works and account heads concerned and credit to Revenue head K-693-Demand No. 12, treating the same as reduction in expenditure on the pattern of other railway material."