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ACCOUNTS INSPECTIONS

ACCOUNTS INSPECTIONS. AUDIT INSPECTIONS. ACCOUNTS INSPECTION OF EXECUTIVE OFFICES Chapter 17 of A-1 WHY? VERIFY THE RECORDS KEPT EITH EXECS. TO ENSURE THAT ALL RETURNS SENT TO ACCOUNTS ARE BASED ON CORRECT BASIC RECORDS. IN ACCORDANCE WITH INSPECTION PROGRAMME.

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ACCOUNTS INSPECTIONS

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  1. ACCOUNTS INSPECTIONS AUDIT INSPECTIONS

  2. ACCOUNTS INSPECTION OF EXECUTIVE OFFICES • Chapter 17 of A-1 • WHY? • VERIFY THE RECORDS KEPT EITH EXECS. • TO ENSURE THAT ALL RETURNS SENT TO ACCOUNTS ARE BASED ON CORRECT BASIC RECORDS. • IN ACCORDANCE WITH INSPECTION PROGRAMME. • DRAWN IN ADVANCE. (1712 of A-1) • INFORM THE EXEC.(1713 of A-1) • INFORMATION TO AUDIT

  3. WHY ACCOUNTS INSPECTION • VERIFY DOCUMENTS IN SITU. • ORIGINAL RECORDS KEPT IN EXEC. OFFICE. • VERIFICATION OF SYSTEMS.

  4. GUIDELINES FOR INSPECTION • Para 1714 of A-1 • VERIFY THAT RETURNS SENT TO ACCOUNTS TALLY WITH THE BASIC RECORDS. • A TEST CHECK OF BASIC RECORDS. • REVIEW OF THE PROCEDURE.

  5. Periodicity of InspectionPara 1704 of A-1 • Material at site of works Once a year • Stores as Imprest Once in 2 years • Tools & Plants Once in 3 years • Material and Depot • A category Once in 6 months • B category Once in 1 year • C category Once in 2 years • D category Once in 1 year

  6. Inspection of Divisional Offices Once in 2 years • Engineering Department Once a year • First Inspection of • Construction office Within 3 months • All subdivisions should be inspected at least once in 2 years.

  7. Inspectorial Staff • Inspection of Stores ISA, SV • Inspection of Station TIA • Inspection of Officers SO’s

  8. INSPECTION REPORTS. • AFTER THE INSPECTION IS OVER. • INCLUDES ALL ITEMS WHICH HAVE NOT BEEN SATISFACTORILY BEEN EXPLAINED DURING INSPECTION. • CONSISTS OF TWO PARTS • PART I • ITEMS OF MAJOR OBJECTIONS. • PART II • ITEMS OF MINOR OBJECTIONS

  9. PART I PREPARED IN QUADRIPLATE ACCOUNTS OFFICE 3 COPIES SENT TO THE EXEC. OFFICE SUPERIOR TO THE ONE INSPECTED 2 COPIES SENT TO THE ACCOUNTS OFFICE INSPECTED REPLY FORWARDED BY SUPERIOR TO ACCOUNTS OFFICE REPLY GIVEN BY THE OFFICE

  10. PART II PREPARED IN DUPLICATE REMARKS OF THE EXECUTIVE ONE COPY SENT TO THE EXECUTIVE OFFICE

  11. STATUTORY AUDITChapter 9 of F-1 • ARTICLE 149 TO 151 OF INDIAN CONSTITUTION. • CAG RESPONSIBLE FOR AUDIT NOT FOR COMPILATION OF ACCOUNTS. • HE HOWEVER CONCURS WITH THE FORM/CLASSIFICATION OF ACCOUNTS. • ALL CORRESPONDENCE THROUGH ACCOUNTS

  12. ORGANISATION CAG PRINCIPAL DIRECTOR(RLY) PRINCIPAL DIRECTOR (ONE IN EACH RAILWAY DEPUTY DIRECTOR AUDIT OFFICERS IN THE DIVISIONS/WORKSHOPS

  13. OBJECTS OF AUDIT • TO ENSURE THAT • SYSTEM OF ACCOUNTS IS CORRECT. • METHOD OF INTERNAL CHECK IS SUFFICIENT. • CHECKS ARE ACCURATE • RAILWAYS FINANCIAL INTERESTS ARE PRESERVED. • ALL RULES ARE BEING FOLLOWED. • ENSURED BY • PERCENTAGE CHECK,ON THE SPOT INSPECTION ETC.

  14. COMMUNICATION OF OBJECTIONS • AUDIT NOTES ---- Deals with the monthly test audits. • PART I CLOSED BY AUDIT • PART II CLOSED BY ACCOUNTS • AUDIT INSPECTION REPORTS • PART I CLOSED BY AUDIT • PART II CLOSED BY ACCOUNTS • SPECIAL LETTERS • DRAFT PARAS AUDIT PARAS

  15. HOW TO DEAL DRAFT PARAS • ISSUED BY DA OF THE RAILWAY. • TO BE REPLIED BY RAILWAY WITHIN 8 WEEKS. • REPLY BY EXECUTIVE, CONCURRENCE OF ACCOUNTS AND APPROVAL OF G.M. • IF AUDIT IS SATISFIED THEN DP IS CLOSED ELSE IT IS INCLUDED IN THE CAG’s REPORT TO PARLIAMENT AS AUDIT PARA. • ACTION TAKEN REPORT IS TO BE GIVEN FOR EACH AUDIT PARA

  16. SENT TO A/C OFFICE REPORT MADE BY AUDIT A/C OFFICE SENDS TO EXEC. TRI PARTITE MEETING IF PART II THEN A/C WILL CLOSE IT ELSE SEND TO AUDITFOR CLOSURE REPLY PREPARED BY EXEC. SENT TO ACCOUNTS

  17. CAG every year publishes a report on the working of the Railways. Some of the cases pointed in the Audit Report of 1998 are discussed where non-observance of some technical details and financial implications lead to loss to the Railways. • ROB constructed at a cost of Rs. 50 Lakhs lying unused • as the approach road was not constructed by the • State Government. • Freight terminal facilities constructed at a cost of • Rs. 6.5 crores unused

  18. Two private sidings were constructed costing Rs. 93 Lakhs and 88 Lakhs from Railway Funds . Delay in issuing of instructions by Rly. Bd. Lead to a loss of Rs. 5.20 Crores. This could have been avoided had there been a termination/ short closure clause due to change in input quantities. New substation constructed in July 1993 at a cost of Rs. 2.02 crores but

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