Inspection Of Executive Offices

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Inspection Of Executive Offices

Source: Chapter XVII of Accounts Code Volume one

Salient features

·         Inspection of Executive offices is one of the important functions of the Accounts Dept.

·         Experienced staff & officers are to be deputed for inspection.

·         Detailed check-list of items are available in Inspection Manual for guidance of the Inspection staff.

·         Inspections should also be conducted by Senior Officers of the Accounts Dept at different levels on regular as well as programmed basis.

·         Inspecting officer should not confine himself merely to the routine check up, but should take the opportunity of offering suggestions to the Executives on

A.      Bearing on economy in expenditure

B.      Untapped sources of revenue

C.      Recovery of railway dues

D.      Reducing clerical work

E.       Delays in measurement of work done by the contractors or preparation of bils

F.       Reduction of Overtime etc.

·         Inspecting officer should discuss his suggestions with the Executive officer concerned, and important suggestions, if any should be reported to the PFA.

·         Inspection team should collect Memorandum of points requiring special attention, delay in clearance of arrears if any or outstanding items in suspense accounts signed by SSO(A) from each of the sections in the Accounts office.

·         Inspection team should discuss all important points noted down during inspection with the head of Executive office, as far as practicable, on the spot.

·         As a result of such discussion, if the Inspection officer is satisfied that there has been no irregularity or objection in regard to any point, it should be dropped and should not find a place in Inspection report.  

Object:

·         On the spot inspection of the source documents maintained in the executive offices which are not sent to the Accounts office for check. 

·         The internal check is exercised in Accounts Office on bills and returns prepared by Executives. Many of the original records on which bills and returns, etc., have been prepared by the Executive.  Hence it is one of the functions of the Accounts Officer to inspect of those original records on which bills and returns, etc., have been prepared by the Executives.

·         To see that the financial rules and orders are being carried out or not.

Documents to check in Executive offices

1.       Initial records/original records.

2.       Bills, returns & vouchers submitted to Accounts Office.

Scope of Inspection:

·         Accounts of Cash – Full check

·         Initial records – Certain percentage

·         Stores Accounts – Full check for one selected month.  Check of one day transactions for each other month for the period intervening since last inspection.

Inspection of Stores – Open Line

·         Done by Stock Verifiers or ISA – Inspector of Stores Accounts

·         Detailed rules prescribed in the IR Code for the Stores Dept.

Items	Frequency
MAS – Materials –at-site	Once in a year
Stores with Imprest holders	Once in two years
Tools and Plant	Once in three years

Inspection of Stores – Depots

Class	Items, whose annual usage value of	Frequency
A	Rs. 50000 and above	Once in 6 months
B	Rs. 10000 to Rs. 50000	Once in a year
C	Below Rs. 10000	Once in two years
D	All items – no issues for 12 months & over	Once in a year

·         PFA & GM may agree to extend the period of verification or curtail the items to be verified, if they felt

1.       The reduction in check will not impair efficiency,

2.       The reduced check will provide sufficient safeguards against loss, &

3.       Too rigid checking is not conducive to economy or is wasteful.

Inspection of Divisions:

·         Other than Engineering Dept. - Once in every two years.

·         Engineering dept – both open line and construction – once in a year

·         The first inspection of a Construction office  - within 3 months of its formation.

 Inspection of Sub Divisions:

·         Engineering Dept – 1 sub divisional office and 2 subordinate offices along with Divisional office – once in a year

·         Other than Engineering Dept – cover all sub divisional offices once in two years.

Inspection Programme:

·         Should be drawn up before commencement of year, duly coordinating with the Statutory Audit duly taking their Inspection programme into consideration.

·         Ensure, that an office which is inspected by the Statutory Audit staff in a one year is not inspected by the Accounts Dept in the same year.

Notice of Inspection:

·         Should be given sufficient notice of the probable dates of inspection, so that the executive may collect necessary documents and arrange to be present at his Hqrs to discuss with the Inspecting officer.

·         The notice should not be longer than necessary for this purpose and the programme of inspection should not be larger than necessary for this purpose

·         The inspection programme should be treated as confidential until the notice of the inspection is actually addressed.

During Inspection:

·         Selected month in the year – To see all the returns, bills, statements and accounts submitted to Accounts office agree with the books and original records kept locally.

·         Test check – Original records not submitted to the Accounts office.

·         Review of arrangement for prompt recovery of railway dues from the parties concerned

·         General review of procedure of maintenance of initial accounts of receipts and expenditure of cash and stores.

Inspection Report:

·         Draft Inspection Report should be completed before leaving the office inspected. The Executive has been given an opportunity of reading and discussing it.

·         It should be brief, items to be arranged in a proper manner duly numbered serial.

·         It should be couched in simple and polite terms.

·         Prepared in two parts such as Part I and Part II.

Inspection Report Part I :

A.      Contains points of Major Importance.

B.      Prepared in triplicate.  First one is Office Copy, Other two copies are sent to the Immediate superior  of the officer(say Sr.DEN) of the officer ( say AEN) whose office was inspected with a request that third copy may be forwarded to the latter (say AEN) for early remarks.

C.      In cases of serious irregularities, the same should be entered in the Register of Serious Irregularities (A. 861)

D.      The remarks of the superior Executive Officer should be scrutinised and further action that may be necessarily taken under the orders of Accounts Officer.

Inspection Report II:

A.      Contains points other than that of Part I.

B.      Prepared in duplicate.  First one is Office copy and Second one is sent to the Officer whose office was inspected.

C.      The Accounts officer should satisfy himself during his next inspection that suitable action has actually been taken on the points raised therein.

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