Railway Accounts Department Examinations

Showing posts with label general expenditure. Show all posts
Showing posts with label general expenditure. Show all posts

Tuesday, March 30, 2021

Budget Order & Expenditure Order

 Budget Order: 


  • Order by means of which was voted by Parliament & approved by President, communicated by Railway Board & Zonal Railway. 


Expenditure Order: 


  • When orders are issued by the Railway Board authorising the Railway administrations to incur expenditure to a certain extent over and above the allotment sanctioned for them, they should be taken as Expenditure Order as distinct from “Budget Order”


Tuesday, February 9, 2021

Productivity Test or Review (Post Appraisal)

 Productivity Test / Review

 

·         Source: Chapter 2 of Indian Railway Finance Code

 

·         Also called as Post appraisal

 

·         Object: 

  1. To compare the earnings or savings in working expenses  eventually realized after the new expenditure (capital) has fructified with that anticipated when the proposal was embarked upon.  

  2.  That means to ensure that the estimated return at the time of proposal has attained or not.

  3. Not only to furnish information as to the results actually achieved to the authority who sanctioned the expenditure but also to serve as a lesson for the future.

 ·         Applicable for all Major works.

 ·         Conducted by Financial branch.

 ·         Separate records of expenditure & earnings related to the selected works (for Productivity Test) have to be maintained by the Accounts officers. So that the Productivity Test can be conducted as soon as it falls due.

 ·         Additional earnings and working expenses   - computation should be done at the project estimate stage.

 

·         To avoid the changes in prices due to escalation – comparison in terms of physical units or throughput i.e., class wise passenger traffic & commodity wise Goods traffic may be carried out.

 

·         New Lines – A statement showing the financial results of its working in specified Form (F 244) should reach the Railway Board not later than 31st December

  • Accompanied by a covering memorandum in which brief explanations should be given of important variations between the actual realization and the estimated earnings.

  • Also a Note by the GM indicating how the actual net cash flow compares with what was estimated at the project stage.


  • Also bring out the probable traffic prospects of the line in the 6th and the  11th year of opening.

 

  • Open Line works - Such Tests applied within five to seven years of their completion.


  • Selection will be made out of these works sanctioned (and/or charged to Capital) on grounds of remunerativeness.


  • All such works costing over Rs. 1 crore will invariably be subjected to this test.


  • The result of the test should be reported by the General Managers to the Railway Board.


  • Works costing between Rs. 20 lakhs and Rs.1 crore charged to Capital and sanctioned by the General Manager within his powers 'of sanction  - Selection will be made by GM in consultation with PFA. 


  • Productivity review  will be conducted for  Works costing above Rs.10 Lakhs - chargeable to DF. Though ROR is not mandatory for execution of those works.  


  • The fact that productivity tests are to be applied to a particular work should be intimated to the authorities entrusted with its execution as also to the Accounts and Audit officers.


  • Maintenance of Register with the following particulars. 

  1. Reference to sanction of the estimate.

  2. Brief particulars of work 

  3. Total estimated expenditure

  4. Nature and extent of "productivity" claimed in the estimate.

  5. When the test or review is to be applied

  6. Brief remarks about the results of the test or review.


  • Review of Register - Half yearly


  • PFA should submit a report embodying the results of the test or review to the GM. 


  • Works selected by the Railway Board - The GM will submit the PFA’s report to the Board with his own comments.  The object of these reports is not only to furnish information as to the results actually achieved to the authority who sanctioned the expenditure but also to serve as a lesson for the future.

&&&&&


Friday, July 24, 2020

Differences between GCC of Works and Services

Inputs by Shri Afzaluddin, Sr.AFA/SCR

Differences between GCC of

SN

ITEM

WORKS

SERVICES

1

EMD rounded to

Rs. 100

Rs.10

2

EMD of successful tenderer

Retained as SD

Returned to the tenderer after submission and verification of prescribed PG (Because SD is not applicable)

3

EMD exemption

MSME & Start-ups registered with DIPP

Start-ups registered with DIPP only

4

PG - % of Contract value

5 %

10 %

5

Submission of PG

Within 21 days from LOA

Within 30 days from LOA

6

Penal interest for delayed PG

12 % from 22nd day to 60 days

10 % from 31st day to 90 days

7

Termination of Contract on failing of PG submission

After 60 days from LOA

After 90 days from LOA

8

SD

5%

Nil

9

LD – Liquidated Damages

0.5 % of 1 % of Contract value for each week or part of the week

Shall not exceed 5 % of Contract value plus token penalty

10

Forfeiture of PG

No link with LD

LD exceeds 50 % - 25 % of PG to be forfeited

LD exceeds 75 % - 50 % of PG to be forfeited

11

Vitiation

Sanction of Competent Authority as per Single Tender to be obtained.

However

1. up to 50 Lakhs – 10 % Vitiation permitted

2. Above 5 Lakhs – 5 % Vitiation permitted

 

Payment shall be restricted to the lowest calculated value of all valid offers

12

Two packet system

Above Rs. 10 Crores Tenders

Above Rs. 50 Lakhs tenders

13

PV Clause

Above Rs. 5 Crores

More than 18 months contract – irrespective of its value

14

PV clause

Labour component – 20 %

Labour component – 70 %

15

Technical eligibility

In the last 7 years

1 work – 60 % of value

2 works – 40 % of value (each)

3 works – 30 % of value (each)

In the last 3 years

1 work – 35 % of value

16

Technical Eligibility

Rs. 50 Lakhs and above Tenders

All works

17

Bonus for early completion

1 % for every 30 days

Nil

18

Contractor’s Measurements

Above Rs. 20 Crores works

Not applicable

19

Tendering through

IREPS

GeM

20

GCC issued by

Civil Engineering Directorate

Transformation Cell ( Mech & EnHM Directorates)

21

GST

12 % on composite supply

18 % for services other than Goods/Works

 

&&&

Friday, July 17, 2020

Material At Site

Works register in Indian Railways

Material At Site A/c – M A S
·         Source: 1436 Engineering Code

·         It is one of the Suspense heads operated on erstwhile Demand No. 16

·         M A S A/c records the stores obtained for specific works.

·         MAS A/c shown as last but two column in the Works Register.  (Last column is Total Charges, Last but one column is value of material recd in advance of payment to contractors, last but third column is Advance payment for supply of materials)

·         For materials obtained for specific works, received at the site of the work and not immediately consumed on the works should be temporarily held at charge of a sub-head of work under “Material-at-Site Account” in the Register of Works.

·         Material obtained for specific works should be kept outside the accounts of any other category of stores. Such material, be deemed to be “Material At Site”

·         MAS A/c – To be maintained for works valuing Rs. One lakh and for Track Renewal works valuing Rs. 3 Lakhs.

·         Maintained by Executive in charge of the work.

·         Custody of Materials under MAS – either under the custody of the in charge of Work or kept in Engineering Stores Depot under the custody of DMS/DSK

·         Minus Issues: Releasing material from works and Material so issued, but found subsequently to be surplus. (Not as Receipts)

·         Minus Receipts : Material returned to Stores or transferred to other works. (not as Issues)

·         Executive is responsible for 1. Daily numerical record 2. Monthly return

·         Accounts Officer is responsible for All final adjustments of MAS transactions in the Works

%%%%


Sunday, July 12, 2020

Numbers Numbers Numbers




Numbers - Works
Item
Number
Remarks
Bonus for early completion of work
Rs. 20 Crores and above works

Contractor's Measurement Book - CMB
Rs. 20 Crores and above works

Two Packet system
Rs. 10 Crores and above

PMC - Project Maintenance Consultancy
Rs. 10 Crores and above

Technical Eligibility Applicable
Rs. 50 Lakhs and above works

Price Variation Clause
Rs. 50 Lakhs and above

Direct Acceptance of Tenders
Up to Rs. 50 Lakhs
TC not required
Departmental charges
(for Deposit works)
12.5 %

Umbrella works - Approval by GM
80% of cost

Umbrella works - Sanction by GM
Up to Rs. 2.5 Crores

Tender Notice Period for works
 more than Rs. 2 Crores
30 days

Normal Tender Notice Period for works
30 days

Tender Notice Period -
 works up to Rs. 1 Crore by CAO/DRM
21 days
Through IREPS only.
Concurrence not required
Tender Notice Period -
 works up to Rs. 1 Crore by CAO/DRM
14 days
Through IREPS only.
Concurrence required
EMD rounded off
Rs.100

PG - Performance Guarantee
5%
Of contract value
PG - to be submit within
21 days

PG Delay 22 to 60 days - penalty Interest
12 %

Security Deposit
5 %
Of Contract value
LD - Liquidated Damages
0.5 % of 1 % of Contract value
For each week or part of the week
Vitiation permitted
Up to 10 %
Works valued less than Rs. 50 Lakhs
Vitiation permitted
Up to 5 %
Works valued Rs. 50 Lakhs and above
Turnover
150 % of Advertised Tender value
In Last 3 years
Technical Eligibility
60% of Tender value
1 work in last 7 years
Technical Eligibility
40% of Tender value
2 works in last 7 years
Technical Eligibility
30% of Tender value
3 works in last 7 years
Bonus for early completion of work
1 % for every 30 days
Maximum 3 %
GST
12 %

OOT - Out Of Turn Works
Up to Rs. 2.5 Crores
All Plan Heads (Except 5200)
OOT - Out Of Turn Works
Up to Rs. 1 Crore
Plan Head 5200 - Staff Amenities
OOT - Out Of Turn Works
Up to Rs. 10 Lakhs
Plan Head 4100 M & P
OOT - Out Of Turn Works
Rs. 25 Crores
Annual Ceiling for other than Safety Works
OOT - Out Of Turn Works
Rs. 50 Lakhs
Annual Ceiling for M & P (PH 4100)
OOT - Out Of Turn Works
No limit
Annual Ceiling for Safety Works
GM's Powers - Consultancy contracts
Up to Rs. 10 Lakhs per case

LC - Letter of Credit applicable
Rs. 10 Lakhs and above works

Material Modification applicable
Rs. 1 Crore and above works
Railway Board works only

Numbers - Services
Item
Number
Remarks
EMD Rounded off
Rs. 10

Performance Guarantee(PG)
10 %
Of Contract Value
Security Deposit
Nil
Because PG is 10 % (for works - 5%)
PG - to be submit within
30 days

PG Delay 31 to 90 days - penalty Interest
10 %

LD - Liquidated Damages -
Shall not exceed
5 %
Of contract value
Two packet tender
Rs. 50 Lakhs and above

LD exceeds 50 % of Contract value
25 % of PG forfeit

LD exceeds 75 % of Contract value
50 % of PG forfeit

PVC - Price Variation Clause applicable
18 months and above duration
Irrespective of value
Labour Component
70 %

Turnover certificatet
150 %

Technical eligibility
One work of 35 %
Value of Tender
GST
18 %
For services (other than Goods and works)
GM's powers - Services contracts
Up to Rs. 100 Crores

LC - Letter of Credit applicable
Rs. 10 Lakhs and above contracts