Railway Accounts Department Examinations

Showing posts with label estimates. Show all posts
Showing posts with label estimates. Show all posts

Sunday, September 17, 2023

Revised Estimates - GM Powers

 



Revised Estimates - GM Powers 



Source 1: Railway Board Letter 2023/F(X)-II/WP/2 dated 14.09.2023 - click here  


Source 2: Chapter 7 of Engineering Code 



When & How - RE - Revised Estimate is prepared - Para 708 E



  • As soon as it becomes apparent,

  • that the expenditure on a work is likely to exceed the amount (in Detailed Estimate) 

  • A RE - Revised Estimate is prepared & 

  • Submitted for sanction of the Competent Authority 

  • In the Same form & the same degree of detail (as the Original Estimate) 

  • Accompanied by a Comparative statement showing the excess or saving under each head of account.  




GM Powers - Sanction of Excess amount



Item

Price escalation

Other than 

Price escalation

Remarks

RE - Revised Estimate

Full powers 

Up to 20% of Original cost

MM - Material Modification - Up to Rs. 2.5 Crores in each case 

M&P Estimates

Up to 100% of Original Estimate or Rs.2 Crores whichever is less

Up to 20% of Original cost or Rs.50 Lakhs whichever is less

MM - Material Modification - Above Rs.10 Lakhs each - Personal approval of GM and Personal approval of PFA

Lump sum Works

Full powers 

Up to 20% of Original cost

Beyond permissible limits - Can sanction as long as the Revised cost is within the limit of powers of New Works under Lump sum category 


Throw forward works - subject to re-appropriation within the sanctioned allotment 

Survey Estimates

Up to 20% (if Original Estimate is sanctioned by Railway Board)

Subject to 


  1. Surveys are included in the Budget

  2. Followed approved yardsticks



Beyond GM Powers - Proposals sent to Railway Board - Check list as follows: 


  • Personal approval of GM 

  • Personal concurrence of PFA or PFA/C or FA&CAO/C

  • Complete details of Revision  

  • Variation Statement/MOD - Memorandum Of Differences 

  • Explanation 

  • Justification for increase/decrease in the scope of work and quantities 



Key points for MCQ : 


  1. Beyond GM powers - Required of Personal approval of GM & Personal concurrence of PFA or FA&CAO/C  

  2. MOD stands for Memorandum Of Differences 

  3. RE stands for Revised Estimate 

  4. DE stands for Detailed Estimates 

  5. MM stands for Material Modification

  6. Estimates - Chapter 7 of Engineering Code 

  7. GM Powers: 

  1. Revised Estimates - Price escalation - Full powers  

  2. Revised Estimates - Other than Price escalation - Up to 20% of Original Cost. 

  3. MM - Material Modification - Up to Rs. 2.5 Crores in each case  

  4. M&P estimates - Price escalation -  Up to 100% of Original Estimate or Rs.2 Crores whichever is less 

  5. M&P estimates - Otherthan Price escalation - Up to 20% of Original cost or Rs.50 Lakhs whichever is less 

  6. Lump sum works - Price escalation - Full powers 

  7. Lump sum works - Otherthan Price escalation - Up to 20% of Original Cost 

  8. Survey estimates - Up to 20% (if Original Estimate is sanctioned by Railway Board) 





Friday, April 10, 2020

Estimates and Verification of Estimates - Engineering Code

Estimates

Most important question

 


Click for article in PDF

·         7th Chapter of Engineering Code  - 7 Kinds of Estimates

 

·                  Estimate meaning: To form an approximate judgment regarding cost of the work or Calculate the approximate cost of the work.

 

·                  Estimates required for :

 

v  Construction or Purchase of new works or Assets

v  Renewals & replacements of existing works or assets

v  Scrapping or dismantling or abandonment of existing works or assets

v  Reconditioning of existing works or assets

v  Repair works

v  Temporary & experimental works

v  Renewals & replacement of worked lines

v  Renewals of Ballast

 

·         Estimates not required for

 

Recondition works

Renewal works (Revenue)

Repair works (Revenue)

Up to Rs. 1 Lakh

Up to Rs. 2 Lakhs

Up to Rs. 5 Lakhs

 

·         Currency of the Sanction:   5 years    ( 2 years, if work is not commenced)

 

·     Names of Estimates - easy to remember - A D S R P C C

 

SN

Estimate

1

Abstract Estimate

2

Detailed Estimate

3

Supplementary Estimate

4

Revised Estimate

5

Project Abstract Estimate

6

Construction Estimate

7

Completion Estimate

 

 

Open Line Works

Construction Projects

Remarks

1. Abstract Estimate

5. Project Abstract Estimate

For obtaining Administrative approval

2. Detailed Estimate

6. Construction Estimate

For obtaining Technical Sanction

3. Supplementary Estimate

Prepared both for Open Line Works & Construction Projects

4. Revised Estimate

Prepared both for Open Line Works & Construction Projects

Nil

7. Completion Estimate

Stock taking Estimate for Construction Projects

 

 

1.       Abstract Estimate:    (for Open Line Works)

 

·         Prepared to obtain Administrative approval of the Competent Authority.

·         To form a reasonable accurate idea of the probable expenditure and such other data

·         Consists of A. Brief Report,   B. Justification,  C. Specifications  & D. Funds required in Current year or not.

·         Source of Finance is to be identified i.e., Capital, DRF, DF etc for different items.

·         Inclusion of item in Works Programme/M&P Programme/RSP with Budget provision - Deemed to be the administrative approval of the Abstract Estimate.

 

 

2.       Detailed Estimate: (for Open Line Works)

 

·         Prepared to obtain Technical Sanction of the Competent Authority

·         Prepared in sufficient detail

·         Ensure that the cost should not exceed the Abstract Estimate.

·         Work should commenced after the technical sanction of the Detailed Estimate and provision in the Budget

 

The sanction of the Competent Authority to the Detailed Estimate of a work is called the

 " Technical Sanction"

 

Detailed Estimate of Open Line Works consists of

Statement of

Details of Estimated cost

Outer sheet consists of Abstract cost of work, Report, financial Justification & Allocation

 

·         If Administrative approval and Technical sanction - both within powers of GM - Sanction for the both can be accorded at the stage of Detailed Estimate, skipping the Abstract Estimate.

 

 

3.       Supplementary Estimates: (for both Open Line works and Construction Project)

 

·         Two occasions:

 

A. An item of work which ought to have been included in the estimate already sanctioned, but has not been included.

 

B. An item of work, which it is found later, should be considered as being a part of an estimate already prepared and sanctioned.

 

·         Prepared in the same form and same degree as the Main estimate

 

·         All purposes, supplementary estimate be treated as a part of Main Estimate.

 

 

4.       Revised Estimate: (for both Open Line works and Construction Project)

 

·         If the expenditure on a work likely to exceed the sanctioned one.

 

·         Prepared and submitted for sanction of the Competent Authority

 

·         Prepared in the same degree, same form like Original Estimate.

 

·         Comparative statement showing excesses/savings under each sub head.

 

 

5.       Project Abstract Estimate  (for Construction works)

 

·         Prepared to obtain the approval of Railway Board. 

 

·         Prepared from an Engineering Survey Report

 

·         Accompanied by A. Narrative report explaining the salient features and major items of expenditure B. Detailed estimates prescribed under various heads.

 

 

6.       Construction Estimate: (for Construction works)

 

Detailed estimates of all works in the Project are collectively known as " Construction Estimate"

 

·         Prepared from the Final Location survey report.

 

·         Divided into convenient sections like engine runs, branch lines, junction arrangements, sections based on topography, divisions etc.

 

·         In special cases work may commence by preparing the Part estimates for sub - works, before preparation of Construction estimate for whole Project . But the same (sub works) should not be redundant at the time of Project Construction estimate is prepared.  Examples are A. Preliminary works B. Final Location survey C. Project office D. Land acquisition etc

 

7.       Completion Estimate: (for Construction works)

 

·         Prepared in supersession of a Construction Estimate

 

Also called as Stock taking estimate

 

 

·         Shows in tabular form as shown below.

 

Amt of Sanctioned estimate

Actual expenditure as on date

Commitments as on that date

Anticipated further outlay

Total estimated cost

Differences between sanctioned cost and the estimated cost

1

2

3

4

5

(2+3+4)

6

(6-1)

 

·          Prepared with brief explanations  - Excesses - Rs. 10,000 or 10% which ever is less and Savings - Rs. 1 Lakh or 20% which ever is less

 

·          Prepared  - At the end of one of the first three financial half years after the date of "opening"  

 

 

 

Verification of Estimates

 

·         Important phase of the Control of Expenditure

 

·         Regular check by the Accounts Officer on all estimate before they are sanctioned by the Competent Authority.

 

·         Object: To avoid irregular expenditure

 

Main Points - Easy to remember -  P I B E C

 

Propriety of Expenditure

Ensure expenditure charged to Railways is legitimate & proper. Ensured canons of financial propriety as enunciated in Para 116F. Proper financial justification.

Incidence & classification of charges

Incidence = Source of Funds,  Classification = Allocation as per Finance Code volume II. Ensure both as per rules in force.  while certifying the Estimate, Accounts officer should clearly state that both have been verified.

However, the estimate should not be delayed if any doubt in allocation. In such cases estimate should certify provisionally.

Budget provision in current year

Verified from the sanctioned budget allotment for the year

Errors & omissions - Freedom from

Executive is responsible for correctness of errors and omissions noted in the course of accounts verification. If not done, a check note appended to the verification certificate  duly pointing out the errors and omissions.  

Competency of Sanction

As per MSOP - checked and certified about the Competent authority empowered to sanction the estimate.

 

Subsidiary points   - Easy  to remember  - P I C A D O R (means Bullfighter)

 

Proper distribution between Cash & Stores

Proper distribution is made of the estimated outlay between Cash & Stores

Incidental expenditure

Incidental expenditure that can be foreseen has been provided in the estimate

CRRM - Credit for Railway Released Material

Provided CRRM in case of renewal, replacement or dismantlement of works

Abstract Allocation of all items

Abstract allocation for all items

Departmental Charges for Deposit works

Work done for other govt. depts or private parties, ensure provision of Departmental charges

Outlay & Outturn - manufacturing operations

Outlay & Outturn should be shown distinctly

Rent Statements in case of Railway Quarters.

Ensure 6 % return in case of each class of staff quarters & other rent returning buildings

 

 

 

 

 

 

 

 


Thursday, December 20, 2018

Estimates and Check on Estimates


Estimates and Check on Estimates

Note: Replace the figures with the latest amounts please.

1.         What is an Estimate?

Estimate: An Estimate is a statement, showing the items of work, materials, required with its cost and labour and other charges for carrying out a particular work. There are seven kinds of estimates prepared on railway at different stages and for different purposes.

2.         Why and how is an estimate prepared?

            An estimate is prepared to arrive at approximate total expenditure required to carry out a particular work and also to get an idea of the expenditure to be incurred on a work in order to obtain the sanction of the competent authority and also to see that the work is financially justified.  Through the estimate the authority competent to give administrative approval to the expenditure proposed to be incurred is determined who after thorough examination as to its necessity, utility and financial prospects, is also able to find out if funds are available for the work and when sanctioned , is to control expenditure against the same.
           There are seven kinds of estimates prepared on railway at different stages and for different purposes. Different forms are prescribed for them. In the estimate, items of work are shown, then material required for the same along with its cost and then labour and other charges are shown. The allocation is also shown. Report and justification for a work are also given at the bottom of an estimate. Remarks of the Accounts officer are also given.

3.         For what works estimates need be prepared?         
                All proposals for,
  1. The construction of new works or purchase of new assets,
  2. The renewals and replacements of existing works or assets chargeable to DRF/DF/RSF/SRSF and Capital Fund when estimated to cost more than Rs.50,000/-,
  3. The renewals and replacements of existing works or assets chargeable to Revenue when estimated to cost more than Rs.2 lakhs,
  4. The scrapping, dismantlement or abandonment of existing works or assets,
  5.  Temporary and experimental works,
  6.  Renewals of ballast,
should, ordinarily be scrutinized by the authority competent to sanction them before any expenditure or liability is incurred thereon. This scrutiny is exercised through what are called Estimates for the works.


4.         Name the different kinds of Estimates prepared for works on Railways?

                The following are the different types of Estimates prepared for works on Railways:
For Open Line Works:-
(a)         Abstract Estimates.
(b)        Detailed Estimates.
(c)        Supplementary Estimates.
(d)        Revised Estimates.
For Construction of New Line Projects:-
(e)        Project Abstract Estimates.
(f)        Construction Estimates.
(g)        Completion Estimates.
5.         When can a work be commenced without Estimate?
     (i)   Works which are considered to be urgently necessary to safeguard life or property or to        repair a             damage to a line caused by flood, accident or other unforeseen contingencies, so as to restore or      maintain through communications.
     (ii)    a) For "New Minor Works" costing Rs.50,000/- and less,
            b)   for renewals and replacement works         chargeable to Revenue costing Rs.2 lakhs and less and
            c)   for "Reconditioning Works" costing Rs.1lakhs and less
            detailed estimates need not be prepared for formal sanction. Rough estimates should be prepared     and kept on record by the Executive Engineer.
6.         What are the estimates prepared for open line works? Explain each of them in detail?
            The following are the different Estimates prepared in connection with Open Line works:
            (a)         Abstract Estimates.
            (b)        Detailed Estimates.
            (c)        Supplementary Estimates.
            (d)        Revised Estimates.

            Abstract Estimates: (AE) (702 E)
1.      An abstract estimate is prepared in order to enable the authority competent to give administrative approval to the expenditure of the nature and magnitude contemplated to form a reasonably accurate idea of the probable expenditure and such other data sufficient to enable authority to gauge adequately the financial prospects of the proposal.
2.      It avoids the expenses and delay of preparing estimates for works in detail at a stage when the necessity and the general desirability of the works proposed have not been decided upon by the competent authority.
3.      It should contain a brief report and justification for the work, specifically should mention whether funds are required in the current FY and to what extent.
4.      It should also show the cost sub-divided under main heads and sub-heads or specific items, the purpose being to present a correct idea of the work and to indicate the nature of expenditure involved.
5.      The allocation of above items as between Capital, DRF, DF etc., should be indicated.
6.      Administrative approval to a work should be accorded by the authority competent to do so after a thorough examination as to its necessity, utility and financial prospects.
7.      In regard to works which are specified in the sanctioned budget of a year i.e., in the "Works, Machinery and Rolling-stock Program" accompanying the Budget Orders, the total estimated cost shown against each work should be regarded as the AE.
8.      The inclusion of a work in the sanctioned budget should be deemed to carry with it the administrative approval of the Railway Board except that in the case of structural works, other than track renewal works, costing more than Rupees one crore each, the administrative approval of the RB should be obtained by submission of separate AE notwithstanding their specific inclusion in the sanctioned budget.            

Detailed Estimate:(DE) (703 E)

1.      On receipt of administrative approval to a project or scheme other than for the construction of new line, conveyed through the sanction to the AE relating thereto, detailed estimates for various works included in the AE should be prepared and submitted for technical sanction of the competent authority.
2.      It should be prepared in sufficient detail to enable the competent authority to make sure that the abstract estimate sanctioned by a higher authority is not likely to be exceeded.
3.      No work included in an abstract estimate should be commenced till a detailed estimate for the same is prepared and sanctioned and adequate funds are allotted by the competent authority.
4.      The detailed estimate of an open line work will comprise
(i)         Statement is showing details of estimated cost and
(ii)        An outer sheet giving the abstract of cost of work, the report, the financial                            justification and the allocation.

   
5.      Technical Sanction – The sanction of the competent authority to the detailed estimate of a work is called the “technical sanction”. The authority according technical sanction should satisfy itself that  
(i)         the details of the scheme as worked out are satisfactory,
            (ii)        the method proposed for the execution off the work are adequate; and
             (iii)      the cost has been estimated from reliable data and likely to be reasonably      accurate.
6.  
6.      In the case of works within his power of sanction, the General Manager may, in lieu of the procedure of preparing Abstract Estimates for administrative approval, prescribe that both the administrative approval and the technical sanction should be accorded on the detailed estimates.

Supplementary Estimate: (SE) (707 E)

1.         A supplementary estimate should be prepared for any item of work, which ought to have been included in the first instance in an estimate already sanctioned but has not been so included, or which it is found later, should be considered as being a part of an estimate already prepared and sanctioned, if it cannot be met out of contingencies.
2.         Such a supplementary estimate should be prepared in the same form and the same degree of detail as the main estimate and for all purposes be treated as a part of the main estimate.

Revised Estimate: (RE) (708 E & 1136 E)

1.      As soon as it becomes apparent that the expenditure on a work or Project is likely to exceed the amount provided there for in the detailed estimate or construction estimate a revised estimate should be prepared and submitted for the sanction of the competent authority.
2.      It should, unless otherwise ordered by the sanctioning authority, be prepared in the same form and the same degree of detail as the original estimate, and should be accompanied by a comparative statement showing the excess or saving under each sub-head of account against the latest sanction.
3.      In cases where a supplementary estimate or a previous revised estimate has been sanctioned by the Railway Board, it should be made clear how the original sanction has been modified by such further sanctions.
4.      In cases where the work is in an advanced stage and is likely to be completed before a revised estimate can be got out, the excess may, with the prior approval of the competent authority, be dealt with in the completion report of the work.
5.      The fact that a competent authority has permitted the regularization of excess over an estimate through the completion report should invariably be intimated to the Accounts Officer.


7.         What are the estimates which are prepared in connection with New Line, or         construction project? Explain each in detail.

The following are the estimates prepared for construction of new line projects:
a)      Project Abstract Estimate,
b)      Construction Estimate and
c)      Completion Estimate.

Project Abstract Estimate: (PAE) (709 E)

1.      This is an abstract estimate for a Construction project. It should be prepared in Form E. 554 and submitted for the approval of the Railway Board.
2.      It should show the Abstract cost of Railway, for the whole line by each section of the line. It should be  accompanied by
(i)               an abstract estimate of junction arrangements,
(ii)             a narrative report explaining the salient features and major items of expenditure
(iii)             detailed estimates on Form E. 553 showing the cost of construction of the                       projected railway under various heads of Capital classification viz. –
a)      Capital-1120-Land
b)       Structural Engineering Works :-
1132--Tunnels, 1151 & 1152-Major Bridges, 1153 & 1154Minor Bridges, 1140 Ballast and Permanent-Way (Detailed estimate for one Kilometre).
c)      2000 --- Rolling Stock
d)      1180 & 1190-General Charges - Establishment and General charges - Other than Establishment.

Ø  Note(i) :-          Head shown above are for plan Head `New Lines' as an example.
                        These detailed estimates should be prepared from an engineering survey report.
Ø  Note (ii):-         The abstract estimate of an unremunerative project chargeable to       Development fund will be prepared in the same detail as the abstract estimate for            a construction project chargeable to Capital.

Construction Estimate: (CE) ( 710 E)

            When it is decided to undertake the execution of a new line, gauge conversion or doubling of lines, a final location survey should be made; and based on the information collected in that survey detailed estimates of all the works included in the project as a whole should be prepared. These detailed estimates are collectively called the "Construction Estimate" of the project.
1.      It should be prepared after a careful examination of the various details of construction involved in the project.
2.      It should be in such detail as to render it possible to dispense with working estimates or any other further estimating after the construction estimate has been sanctioned (except when supplementary or revised estimates are necessary).
3.      It should provide for the buildings and equipment of the railway up to a standard that will be sufficient for working such traffic as may be expected during the first year or two after opening of the line.


4.      It is the basis on which technical sanction to the various works included in the construction of a project is accorded.

5.      In special cases where works are required to be commenced before the earliest date by which detailed estimates for the project as a whole could be prepared and sanctioned, part estimates for sub- works may be prepared. To enable the commencement of work on such works forming a part of the project, part estimates for the following sub-works may be sanctioned progressively by the authority competent to sanction the detailed estimate for the whole project :

(i)           Preliminary works including final location survey etc.
(ii)         Setting up of project offices and organisation including office accommodation,       construction equipment minimum vehicles and provision for gazetted and non-         gazetted staff etc.
(iii)       Land acquisition
(iv)       Formation and bridge works for whole or part of the project where survey has          been done and alignment determined.
(v)         Minimum service buildings in case of new line works required to meet          immediate needs of construction organisation and subsequently required for   operation of the project.
(vi)       Minimum residential quarters required to meet immediate needs of construction        staff. The number and location of quarters should be within the overall       requirement of Open Line for operation of the project.
6.      Before forwarding part estimates duly concurred by FA & CAO and approved by General Manager for sanction to the Rly. Board, it should be certified that no works included in the part estimates are likely to become redundant when estimate for the whole project is prepared.

7.      The Construction Estimate of project should be prepared in Form E. 553 prescribed for the purpose. It should be divided into convenient sections in accordance with the following principles:

a)      When, as is usually the case, certain works within the limits of a junction station are incidental to the project, these works should form a distinct section;
b)      When a project comprises a "main line" and a "branch", the "branch" should form at least one distinct section;
c)      Where the country traversed by a line is such that it may readily be divided into tracts of distinctive topographical character, the length through each class of country may comprise a section or a project may be divided into "engine runs" or into lengths suitable for "construction divisions".
d)      Where there is likelihood of different sections of a project being opened to traffic at different intervals, the estimate for each such section should be kept distinct;
e)      When an estimate for any alternative alignment of importance is included, the estimate for the alternative alignment and for the length which it would supersede, if adopted, should each be comprised in a distinct section.


 Completion Estimate:

1.      A completion Estimate is prepared in supersession of a construction estimate.
2.      In the case of Railway Projects costing over rupees one crore, the Construction or Abstract Estimate should be closed at the end of one of the first three financial half years after the date of "opening"  as             may be convenient and a "completion estimate" prepared.
3.      The completion estimate is a "stock taking estimate", and all works not started on that date are excluded from the scope of the project and are to be dealt with separately. The financial half year in which the project is opened should be excluded for        determining the date of closing of project estimate and preparation of completion estimate.
4.      Completion estimate should show in a tabular form (E. 713) the following particulars in respect of all the works included in the construction estimate :
(i)           amount of sanctioned estimate;
(ii)         actual expenditure on all works up to the date of closing of the construction estimate;
(iii)       commitments on that date;
(iv)       anticipated further outlay;
(v)         total estimated cost [ (ii) to (iv) ]; and
(vi)       difference between the sanctioned estimate and the estimated cost [ (v) – (i) ].
5.      It is accompanied by an Abstract under Capital classification of heads if there is any Material Modification, requiring Rly. Board’s sanction. Explanations for excesses of not less than Rs. 10,000 or 10 per cent over the provision under sub-heads of account and for savings of 20 per cent or one lakh, whichever is less, occurring under any main head of account.
6.      Provision for further outlay should be made in completion estimate only for those works which are in progress or completed on the date of closing of the construction estimate.


8.         What are the main points to be seen in the verification of estimates for works by the         Accounts?
           
            (741 E to 748 E)

            One phase of the control of expenditure on railways is a regular check by the Accounts Officer of all the estimates before they are sanctioned by the competent authority. The object of this preliminary check of estimates is to avoid irregular sanction to expenditure and the main points which require consideration are:

(i)                 The propriety of the expenditure;
(ii)               The incidence and classification of charges;
(iii)             The existence of budget provision to meet the proposed expenditure during the         FY
(iv)             Freedom from errors and omissions and
(v)               Competency of sanction.


Propriety of Expenditure.
1.                  It is the duty of the Accounts Officer, in his capacity as Financial Adviser, to            examine zealously all proposals for expenditure with a view to see
(i)                 that the expenditure proposed to be charged to railway funds in the estimate, is         properly and legitimately so chargeable;
(ii)               that proper financial justification is forthcoming in the case of all works requiring     such financial justification; and
(iii)             that in the case of estimates for staff quarters and other rent returning building,         the anticipated yield of rent as shown in the `Rent Statement' will not have the    effect of reducing the return on the cost (excluding cost of land) of each class of     Quarters to less than 6 per cent per annum.

Incidence and Classification of Charges.

1.      These should be verified in an estimate in accordance with the rules of incidence and
            the classification of expenditure prescribed in the Indian Railway Financial Code. In his      verification certificate, the Accounts Officer should clearly state that incidence and         allocation have been so verified.
2.      The submission of an estimate to the sanctioning authority should not be delayed when there arises any doubt as to the correct allocation of estimated cost and the question at issue will take time to settle. In such cases, the approximate allocation between Capital or Development Fund, Open Line Works-Revenue, Depreciation Reserve Fund and Revenue may be certified by the Accounts Officer, as far as it is possible for him to do so, and the sanctioning authority may sanction the estimate, if otherwise in order, leaving over the question of allocation for subsequent consideration.
            If the estimate of the work is altered as a result of verification of the estimate by the             Accounts officer, the previous sanction should be revised.

Budget Provision:

1.      The existence of budget provision for a proposed work should be verified from the sanctioned budget allotments for the year.
2.      In case no funds exists, competent authority should be asked to arrange for funds before the work is actually taken in hand.

Freedom from Errors and omissions:

1.      Errors and omissions noted in the course of the accounts Verification of estimates should be got corrected by the executive authority responsible for the preparation of the estimate.
2.      The Accounts Officer may, in case where this becomes necessary, append to his verification certificate, a check note specifying such items of errors or           omissions as have been pointed out by him, but have not been accepted by the executive authority and any other matter of importance.

  
Competency of Sanction:
            The previous sanction of an authority higher than the General Managers of Indian    Railways is necessary :
(i)         To expenditure on new lines or rolling stock or surveys not provided in the sanctioned         budget for the year or carried forward from the sanctioned budget of the previous year;
 (ii)       To expenditure on other works not provided in the sanctioned budget or carried forward      from the sanctioned budget of any previous year except :
(a)        (i)         Track renewal works costing not more than Rupees two lakhs;
            (ii)        Other works costing not more than Rupees one lakh;
            (iii)       Machinery & Plant-costing not more than Rupees fifty thousands.
                        Provided that the total lump-sum provision made in the budget for such works is                               not exceeded;
(b)        (i)         On line capacity works costing above Rupees one lakh but not more than Rupees                             ten lakhs each;
             (ii)       On track renewal works costing above Rupees two lakhs but not more than                           Rupees five lakhs each;
            (iii)       On other than line capacity and track renewal- works costing above Rupees one                                lakh but not more than Rupees five lakhs each;
            Subject to ceiling of Rupees one crore in all in a financial year provided that the       sanctioned budget (other than lumpsum) for works in these categories is not exceeded.


*****

























:: 10 ::

      Closing the Accounts of a Project:-
            Those items of work which were in progress at the time of closing of Construction of Abstract estimate should be got completed and the accounts of the project should be closed as soon as possible. Executive Engineers in charge of project should therefore take   prompt action to bring to account all charges and credits pertaining to the projects. They should            before closing the accounts of a project, take steps to liquidate all outstanding liabilities, clear suspense balances, pay up all outstanding contractor’s claims and dispose of all surplus stores and        tools and plants returned from works. After all charges and credits relating to the project have been booked in the accounts of the project a Completion Report of the project should be prepared.

      Project Completion Report:-
      a)   The object of a Completion Report is to compare the cost of work actually constructed with those                      provided in the last sanctioned estimate.
      b)   The completion report of a project duly verified by the Accounts Officer, should be submitted to                       the Railway Board within 18 months after the end of the financial half year in which the                                          completion estimate is submitted. It should state the expenditure in the same details as the                            abstract estimate sanctioned by the Railway Board and should indicate any material modifications               thereto.
            The Completion Report should be prepared in the following form and brief explanations should      be       furnished for: -
      (i)    excess of not less than 10 per cent or Rs. 25,000 whichever is less over the estimated provision                        under each sub work;
     (ii)    saving of not less than 20 per cent or Rs.1 lakh whichever is less, occurring under any sub-work.
Excess Over Estimate:
              Sanction to an estimate means that Competent Authority has permitted to spend specific amount on a particular work. During the course of execution of a work when it appears that estimated cost is likely to exceed, steps should be taken to revise the estimate if the work is not at advance stage and further expenditure should be restricted to the extent possible until revised estimate is sanctioned or sanction for the excess is obtained from the Competent Authority. In case work is at advanced stage, the excess expenditure may be regularized by preparation of variation Statement (revised cum completion statement ) and obtain the sanction of Competent Authority. In such cases the expenditure to be computed on the basis of gross estimated cost and gross expenditure on the scheme as a whole.
              On deposit works and M. Remittance works, if it is noticed that the expenditure is likely to exceed the estimated cost and also deposit made by the parties, and the amount accepted by other Government departments, the expenditure should forthwith stopped until and unless the requisite amount is deposited by private bodies or amount accepted by other Government Departments.
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