Railway Accounts Department Examinations

Showing posts with label Audit. Show all posts
Showing posts with label Audit. Show all posts

Tuesday, May 1, 2018

Theme based Audit- Very important


Theme based audit 

v Introduced in the year 2006 @ CAG audit

v Usually Audit inspections have become routine in nature.  That means concentrate on the bills, vouchers submitted to the accounts office by the Executives.

v Regular audit inspections are not contributing any major system improvement.

v So to obviate the above limitations in the regular audit and as a system improvement,  Theme based Audit introduced at CAG audit inspections in the year 2006.

v In Railways Accounts administration too, Internal Audit Cells (formed around 1993 year) are advised to carry out the "THEME BASED AUDITS" for system improvement. 

v Procedure of "Theme based Audit" in Railway administration is as follows.
(Authority:  Railway Board letter No. 2015/AC-II/20/16 dated 20.10.2015. Click here for letter -                               )

1.     Identification of 2 subjects per year by FA&CAO in Zonal Railway/Production Unit.
2.     Holding entry level conference with concerned PHOD's in presence of General Manager.
3.     Nomination of Nodal officer in each dept. to facilitate system audit.
4.     Completion of Internal Audit Report.
5.     Holding Exit conference on the Draft Internal Audit Report by FA&CAO with PHOD concerned in the presence of General Manager.
6.     Finalization and submission of Final Internal Audit Report to PHOD concerned.
7.     Concerned PHOD will submit ACTION TAKEN REPORT thereon to General Manager through FA&CAO along with copy to Railway Board (within 90 days)
8.     Salient features of the Internal Audit Report will be shared with all the Zonal Railways for information and system improvement.
9.     Executive Director/Finance Commercial is the Coordinator at Railway Board for Theme based Audits.
South Central Railway - Theme based Audit subjects
2015-16
2016-17
1. Inventory mgmt. & accountal of HSD oil at RCDs
1. Track materials - Procurement, Accountal & Utilization
2.  Procurement, utilization & accountal of Sand by RCDs & Sheds
2. Freight loading - Unmet demand for Wagons & solutions

Note:
Candidates are advised to understand the above one carefully, as it is the latest topic in Audit side and expect short notes question in Appendix 3 (IREM) exams/LDCE.  5 marks question asked on this subject in LDCE -SWR 2016 Paper I.
****

Sunday, April 15, 2018

PAC - Public Accounts Committee


Public Accounts Committee - PAC

                                   
v  Shortly or popularly called as PAC.

v  It is one of the Standing Parliamentary committees in India. Hence it is under the control of Speaker of Lok Sabha.

v  The term of office of PAC members is one year only.

v  Total Members should not be more than 22.  (15 Members were from Lok Sabha and 7 Members were from Rajya Sabha)

v  None of the above members shall be a Minister of Government.  If a Member after his election to the PAC is appointed a Minister, he ceases to be a member of the Committee. 

v  The Chairman of PAC is appointed by the Speaker amongst its members of Lok Sabha. Since 1967, the Chairman of the PAC has been a member of Opposition.  This practice has been continued since then, though it is not mandatory.

v  Functions of PAC

  1. Examination of the Appropriation Accounts relating to Railways, Defense Services, P & T Dept and other civil ministries of Central Government.

  1. Examination of Reports of CAG on the above Appropriation Accounts.

  1. Examination of CAG Report on Revenue Receipts of Government of India.

  1. That the money shown in the Appropriation accounts as having been disbursed were legally available for and, applicable to the service or purpose to which they have been applied or charged.

  1. That the expenditure conforms to the authority which governs it.

  1. That every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by competent authority.

v  Normally all the recommendations of the PAC are implemented by the Government.





Working of the PAC:

v  The representatives of the Ministries like Railways, Defense etc appear before the PAC when examining the Accounts and Audit (CAG) reports relating to their ministries.

v   The committee proceeds by way of INTERROGATION of witnesses.  The CAG is the "friend, philosopher and guide of the PAC" while attends the sittings of the Committee and assists it in its deliberations.

v  The Committee may appoint one or more Sub-Committees/groups to examine any particular matter.


Govt's Action on PAC recommendations:

v  Stages  are  1. Action taken Notes  2.  Action taken Report  3. Action taken Statement.

v  1. Action taken Notes:  Govt take action on the recommendations of the PAC and submit ACTION TAKEN NOTES to the Committee.

v  2.Action taken Report:  The PAC then present ACTION TAKEN REPORT after considering the views of Government.

v  3. Action taken statement:  The Government further submit an "Action Taken Statement on the action taken by the Government on the Action Taken Report of the committee.  Action taken Statement is generally laid before the House without any further examination by the PAC. 

v  Normally, almost all the recommendations of the Committee are implemented by the Government.

                                                                        ()()()()()()()()()