Indian Railway Codes and Manuals-Accounts code- Vol-I-Chapter-17 (XVII)
CHAPTER XVII
INSPECTION OF EXECUTIVE OFFICES
1701.
Object of Inspection. - One of the functions of the Accounts Office is to
inspect on the spot the source documents maintained in the Executive Offices
which are not sent to the Accounts Office for check. The internal check is
exercised in an Accounts Office on the bills and returns etc. prepared in the
prescribed forms by the Executive offices. Many of the original records on
which these bills and returns etc. are based are retained in the office where
these originate. To enable the Accounts Officer to examine the accuracy of the
data on which bills and return etc. have been prepared by the executive, he is
required to inspect the records retained in the executive offices. The Accounts
Officer, or the staff deputed to inspect an office, should see that the bills,
returns, vouchers etc, submitted to the Accounts office have been correctly
prepared and accord with facts and that all such initial records n which bills,
returns, vouchers etc. are based have been maintained efficiently. In addition,
the object of local inspection is to see that the financial rules and orders
are being carried out, and that the executive authorities responsible for
keeping the accounts exercise due care over the accuracy of the accounts.
1702.
Selection of Inspecting Staff. - As inspection work is one of the important
duties of the Accounts Office, the officers and staff deputed for inspection
should be specially selected from among experienced hands.
1703.
Scope of Inspection. - During the inspection only a percentage of the initial
records of the office inspected need be scrutinised but the accounts of cash
should be checked in full. The accounts of stores should be checked in full for
one selected month and to the extent of one day transactions for each other
month for the period intervening since last inspection.
1704.
Inspection of Stores. - Items of stores whether in depots, or issued for
consumption and lying with the consuming departments as materials-at-site, or
tools and plant in the various offices, should be verified by Stock Verifiers
or Inspectors of Stores Accounts, subject to the general supervision of, and
occasional test check by an Accounts Officer, The inspection should be so
arranged that all materials-at-site of works are ordinarily verified once a
year, stores with imprest holders are verified once in two years, all tools and
plant are verified once in three years and all materials in a Depot as under: A
items all items having an annual usage value of Rs. 50,000 or more Once in 6
months B items all items having an annual usage value of Rs. 10,000 and Above
but below Rs. 50,000 Once in a year C items all items having an annual usage
value below Rs. 10,000 Once in 2 year D items all items that have had no issues
for twelve Once in a year months and over Detailed rules for the verification
of stores have been prescribed in the Indian Railway Code for the Stores
Department. Note. - The financial Adviser and Chief Accounts Officer, or a
Deputy Chief Accounts Officer where he is the head of the Accounts Organisation,
may extend the periods of verification or curtail the items to be verified in
cases where he and the General Manager agree that:- (i) the reduction in check
will not impair efficiency, (ii) the reduced check will provide sufficient
safeguards against loss, and (iii) a too rigid application of the above rule is
not conducive to economy or is wasteful.
1705.
Inspection of Station Accounts - The initial accounts of all stations should be
inspected by the Inspectors of Station Accounts, whose work will be regularly
test checked by an Accounts Officer. Detailed instructions in this connection
are laid down in Chapter XXXIII.
1706.
Inspection of Divisions and Sub-Divisions. - The initial accounts of
expenditure in the various divisional offices should be inspected by an
Accounts Officer once every two years, but the initial accounts of engineering
expenditure, bothconstruction and open line should be inspected once a year.
The first inspection of a construction Office should. As far as possible, be
made within three months of its formation. Inspections of divisional offices
should, in addition to the divisional records, embrace a complete examination
of the initial records of at least one subdivisional office in the case of
engineering expenditure and of at least two subordinate offices, not directly
in the charge of an Officer. As far as possible, all the sub-divisional offices
in a division should be inspected once within two years. Note. - A detailed
Check-list showing the items to be checked and the extent of check should be
draw out by each Railway Administration and incorporated in the Inspection
Manual for the guidance of the Office and Staff.
1707.
Inspection by Senior Officers. - Inspections should also be conducted by
Officers of the Accounts Department at different levels, on a regular and
programmed basis so as to keep themselves in touch with the position of work in
Workshops, Offices, Stores Depots etc. placed under their charge. These
inspections should, inter alia bring out matters which ar e likely to give rise
to unsatisfactory situations and to suggest appropriate remedies. It is
possible that some problems, particularly the recurring problems, would call
for further detailed examination before appropriate solutions are found. In
such cases the inspecting Officers should initiate the examinations of such
problems on their own with the help of the concerned branches of the Head
quarters/Divisional Office.
1708
Functions of the Inspecting Officer. - An Inspecting Officer should not confine
himself merely to the routine items of check but should take the opportunity of
advising and assisting departmental officers in matters affecting accounts,
budget, etc. From the information available to him locally he may offer
suggestions bearing on economy in expenditure, untapped sources of revenue,
recovery of railway dues etc. There are various directions in which the
Inspecting Official can assist the executive officers in the course of his
inspection, e.g. in reducing clerical work, delays in measurement of work done
by the Contractors or preparation of bills, reduction of overtime etc. He
should discuss his suggestions with the Executive Officer concerned, and
important suggestions which may have significant effect should be reported to
the Financial Adviser and Chief Accounts Officer.
1709
Inspection of Subordinate Offices. - In a division, the initial accounts of
which have been taken over by the Divisional Accounts Officer, the subordinate
offices may be inspected at such intervals, as may be considered necessary by
the Financial Adviser and Chief Accounts Officers.
1710
Inspection of other offices. - The office in which the only records to be
inspected are the eave accounts of subordinates, contingent expenditure,
records of free passes etc., should be inspected at intervals of not less than
five years.
1711
The offices of the branch line companies worked by a Railway should be
inspected once a year.
PROCEDURE
1712
Programme of Inspections. - A programme of inspection to be conducted during
the course of a year should be drawn before the commencement of the year
keeping in view, inter alia the programme of inspections to be carried out by
the staff of Statutory Audit. The programme of inspection should invariably
include new offices set up during the previous year; a list of such offices
should be furnished to Audit. Note. The Financial Adviser and Chief Accounts
Officer (or a Deputy Chief Accounts Officer where he is the head of the
Accounts Organisation) may at his discretion arrange the inspection programme
in such a way that an office which is inspected by the Statutory Audit staff in
one year is not inspected by the Accounts Department in the same year.
1713
Notice of Inspection - The head of the office which is proposed to be inspected
should be given sufficient notice of the probable dates of inspection : so
that, he may collect the necessary documents and arrange to be present at his
headquarters to discuss with the Inspecting Officer the results of the
inspection. The notice should not be longer than necessary for this purpose and
the programme of inspection should be treated as confidential until the notice
of the inspection is actually addressed.
1714
General inspections. - During the inspection of an executive office:- (i) a
detailed examination should be made to see that in respect of a selected
month,. All the returns, bills, statements and accounts submitted to the
Accounts Office agree with the books and original records kept locally ; (ii) a
test check should be made of the original records not submitted to the Accounts
Office and of the accounts, returns, vouchers, etc., which are not checked in
the Accounts Office or which cannot be checked adequately except locally, since
the last inspection either by Accounts or Audit ; (iii) a special review of the
arrangements for prompt recovery of railway dues from the parties for the
service rendered, proper evaluation of the service rendered, agreements, system
of issuing bills, chasing of recoveries and timely intimation to Accounts
Office. Items where heavy accumulations are noticed may be particularly looked
into and discussed with the Executive Officer for early recovery. (iv) a
general review for the procedure relating to the maintenance of initial
accounts of receipts and expenditure of cash and stores should be made with a
view to the elimination of useless returns, redundancy of any kind and wasteful
methods and to assisting the departmental officers in matters affecting
accounts, budget, or the financial propriety of transactions.
1715
Before proceeding to inspect an office, the Inspection Party should obtain from
each of the sections of the Accounts Office a memorandum, signed by the
Sectional Officer, of points requiring special attention or examination on the
spot and also of cases of long delays in the clearance of any arrears of work
or of any outstanding items in suspense accounts. In the course of inspection,
the Party should obtain information or remarks of the executive for the
disposal of those points. In particular, outstanding Accounts and Audit
Inspection Reports and Audit-Notes etc. should be examined by the Inspection
Party for obtaining information and settlement, to the extent possible of the
outstanding points during the course of inspection.
1716
Discussion with Executive Officers. - All irregularities and objections noticed
during the course of inspection should be noted down methodically. The
Inspecting officer should discuss all important points noted down with the head
of the Office inspected, as far as practicable, on the spot. If, as a result of
the discussion, the Inspecting Officer is satisfied that there has been no
irregularity or objectionable feature in regard to any point, it should be
dropped and should not find a place in the inspection report. If, however, the
objection is not clarified and settled during discussion the executive
officer's views should, as far as possible be recorded to facilitate a final
decision by the higher authority.
1717
At the conclusion of the inspection, the inspection report should be compiled
embodying all irregularities and objections for which no satisfactory
explanations were forthcoming. As far as possible the draft of the Inspection
Report should be completed before the Inspecting Officer leaves the office
inspected, and it should not be finalised until the officer in-charge of the
office inspected (or any other officer acting on his behalf) has been given on
opportunity of reading and discussing it. The Report should be as brief as
possible and the points covered in the report should be arranged in a proper
manner and serially numbered. The report should be prepared in two parts. The
first part should contain points of major importance only, all other items
being relegated to Part II. In the event of a particular type of irregularity
being noticed in a number of offices, a special report should be made to the
Divisional Officer concerned or head of the Division, according to its
importance, for instituting urgent remedial measures.
1718
As a rule the Report should be couched in simple and polite terms.
1719
Part I of the Report should be made out in triplicate. - One copy will be
retained in the Accounts Office and the other two copies should be sent to the
immediate superior of the officer whose office was inspected with the request
that one copy may be forwarded to the latter for early remarks through the
superior officer. Before forwarding the replies. the immediate superior should
satisfy himself that the remarks are correct and complete, and where necessary,
should have them amended or amplified to avoid further correspondence. The
remarks of the superior Executive Officer should be scrutinised and further
action that may be necessary taken under the orders of the Accounts Officer. If
any cases of serious irregularities come to light in the disposal of the
inspection report (Part I), the details thereof should be entered in the
Register of Serious Irregularities (A. 861) and the progress of their disposal
carefully watched. In the Accounts Office, Part I of the Inspection Report
should ordinarily be seen by the Deputy Chief Accounts Officer. Part I of the
Reports on the major construction and other offices inspected by the Deputy
Chief Accounts Officer or those containing very important points should also be
seen by the Financial Adviser and Chief Accounts Officer, as far as possible.
1720
Part II of the Report. - This should be made out in duplicate. One copy should
be retained in the Accounts Office as office copy and the other sent direct to
the Officer in charge of the office inspected with the request that
irregularities pointed out therein may be rectified and the recurrence of such
irregularities guarded against. The officer in charge of the office inspected
should acknowledge receipt of the report, and give suitable remarks as to the
action taken by him against each item in the report before filing it in his
office, The Accounts Officer should satisfy himself during his next inspection
that suitable action has actually been taken on the points raised therein.
1721
Frauds and Losses. - When a fraud or loss comes to notice during an inspection,
the nature and extent thereof should be investigated and a report made to the
Executive Officers concerned. Further action should be taken in accordance with
the rules laid down in Chapter XI of the Financial Code.
Multiple choice questions:
1.What is the primary objective of
inspection by the Accounts Office?
A) To maintain original records.
B) To verify the correctness of
bills and returns.
C) To increase revenue.
D) To manage cash accounts.
Answer: B) To verify the correctness
of bills and returns.
2. Who should be selected for
inspection work according to the Indian Railway Code?
A) New employees.
B) Statutory auditors.
C) Experienced staff members.
D) External contractors.
Answer: C) Experienced staff
members.
3. What percentage of initial
records is typically scrutinized during inspection?
A) 100%
B) 75%
C) 50%
D) A selected percentage
Answer: D) A selected percentage.
4. How often should
materials-at-site of works be verified according to the inspection rules?
A) Once a month
B) Once a year
C) Once every six months
D) Once every two years
Answer: B) Once a year.
5. What should be done if a too
rigid application of the inspection rules is deemed wasteful?
A) Ignore the rules.
B) Report it to the General Manager.
C) Extend the periods of
verification.
D) Reduce the items to be verified.
Answer: D) Reduce the items to be
verified.
6. Who is responsible for checking
the initial accounts of all stations?
A) Financial Adviser
B) Accounts Officer
C) Inspectors of Station Accounts
D) Divisional Officer
Answer: C) Inspectors of Station
Accounts.
7. How often should the initial
accounts of divisional offices be inspected?
A) Once a month
B) Once every six months
C) Once every two years
D) Once a year
Answer: C) Once every two years.
8. What should be done before
inspecting a construction office?
A) Inspect within the first six
months.
B) Inspect within the first three
months.
C) No inspection is needed.
D) Wait until the project is
completed.
Answer: B) Inspect within the first
three months.
9. What should an Inspecting Officer
focus on during an inspection?
A) Routine items of check only.
B) Suggesting economy in
expenditure.
C) Managing payroll accounts.
D) Collecting revenue.
Answer: B) Suggesting economy in
expenditure.
10. How often should subordinate
offices be inspected in a division where initial accounts are taken over by the
Divisional Accounts Officer?
A) Every year
B) Every three years
C) As necessary
D) Every two years
Answer: C) As necessary.
11. What interval is required for
inspecting offices where only records of leave accounts and contingent
expenditures are kept?
A) Every year
B) Every two years
C) Every three years
D) Every five years
Answer: D) Every five years.
12. When should a programme of
inspections be drawn up?
A) At the end of the year
B) After the inspection is complete
C) Before the commencement of the
year
D) During the inspection
Answer: C) Before the commencement
of the year.
13. Who has the discretion to
arrange the inspection programme to avoid duplication with Statutory Audit
staff?
A) General Manager
B) Financial Adviser and Chief
Accounts Officer
C) Divisional Officer
D) Inspecting Officer
Answer: B) Financial Adviser and Chief
Accounts Officer.
14. What should be included in the
inspection programme?
A) Only old offices
B) New offices set up during the
previous year
C) Personal accounts of staff
D) None of the above
Answer: B) New offices set up during
the previous year.
15. What should be done before the
inspection of an office?
A) The head of the office should be
notified.
B) No prior notification should be
given.
C) Only confidential documents
should be checked.
D) The office should be closed
temporarily.
Answer: A) The head of the office
should be notified.
16. What is the purpose of a
detailed examination during an inspection of an executive office?
A) To review payroll.
B) To ensure all returns, bills, and
statements agree with original records.
C) To reduce employee workload.
D) To increase railway revenue.
Answer: B) To ensure all returns,
bills, and statements agree with original records.
17. What action should be taken if
heavy accumulations of railway dues are noticed?
A) Ignore it.
B) Discuss with the Executive
Officer for early recovery.
C) Write it off as a loss.
D) Delay further action until the
next inspection.
Answer: B) Discuss with the
Executive Officer for early recovery.
18. How should an Inspecting Officer
handle suggestions that may have significant effects?
A) Keep them confidential.
B) Discuss them with the Executive
Officer.
C) Ignore them.
D) Report them to the Financial
Adviser and Chief Accounts Officer.
Answer: D) Report them to the
Financial Adviser and Chief Accounts Officer.
19. What is the process after the
inspection report is compiled?
A) It should be kept confidential.
B) The head of the inspected office
should be given an opportunity to discuss it.
C) It should be finalized
immediately.
D) It should be sent directly to the
General Manager.
Answer: B) The head of the inspected
office should be given an opportunity to discuss it.
20. How should Part I of the
Inspection Report be distributed?
A) In duplicate to the Accounts
Office only.
B) In triplicate, with one copy sent
to the immediate superior of the officer whose office was inspected.
C) Sent directly to the Financial
Adviser.
D) Not distributed at all.
Answer: B) In triplicate, with one
copy sent to the immediate superior of the officer whose office was inspected.
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