Completion Reports

 Completion Reports

•  Source: 17th Chapter of Engineering Code   

• At the time of closing of Construction works, any items which were in progress should be completed and the accounts of the Project should be closed as soon as possible.  

• The Project Engineer should therefore take prompt action as follows:

1. To bring into account all charges and credits pertaining to the Project. 

2. Take steps to liquidate all outstanding liabilities.

3. Clear Suspense balances.

4. Pay up outstanding Contractor’s claims

5. Dispose of all surplus stores and tools and plants returned from work. 

6. After all charges and credits relating to the Project have been booked in the accounts of the Project, a CR - Completion report of the Project should be prepared. 

 

Objects:  

1. To compare the cost of work actually constructed with those provided in the last sanctioned estimate . 

2.  To close the accounts of the work. 

3.  To serve as a lesson to prepare the estimates for similar future works more realistically.

4.  To regularise the excess over sanctioned estimate

5.  To transfer the expenditure reported in CR to Open Line through TWFA

• Details: 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. 

• Verification: By Accounts Officer

• Submitted to:  Railway Board

• Target: Within 18 months from the end of financial year in which the completed estimate is submitted. 

• Example:  Suppose the Completion estimate is sanctioned in June, 2018.  The end of the Financial year is March, 2019. Hence the due date for submission of Completion Report is 18 Months from March, 2019 i.e., September, 2020. 

 

•  Addl information in CR:  Any other information as would in the opinion of the Railway administration be of interest to the Railway Board. 

 

• Form E. 1706

COMPLETION REPORT FOR THE WORK................

Particular Heads of Account and Description of works	Amount of Estimate with reference to authority for sanction	Actual Expenditure	Difference		Remarks & Explanations
			Excess	Saving

• Explanations: 

1. Excesses:  Not less than 10 % or Rs. 25000 whichever is less over the Estimate  - Sub work wise. 

 

2. Savings: Not less than 20 % or Rs. one Lakh whichever is less over the Estimate  - Sub work wise. 

• If variations are within 5 % of the Sanctioned Estimate, the respective Engineer is authorised to approve CR behalf of GM.  

 

• CR of New Railway Lines:   Accompanied by a Comparative statement showing the literal prospects of the line as anticipated and updated with ref to the Completion Cost. While working out, the changes happened for the estimate of Earnings up to the date should have been taken into account while working out the financial prospects. 

 

• CR of Works costing less than Rs. One Crore

1.  Should be considered as completed when it funds the purpose for which it when sanctioned, was intended,

2. and when there has been no expenditure thereon for 3 months thereafter. 

3. All outstanding debits and credits - as a rule adjusted in the account of work within 3 months of the date of completion. 

4. The account of a completed - should be closed 6 months after the date of completion and CR should be drawn.

5. CR should be prepared in the same work as that for works costing over Rs. One Crore. 

6. Explanations:  Excesses and Savings - 5% or Rs.10000 whichever is less.  

7. Should be submitted within 6 months of the Completion of the Work.  

8. No expenditure is recorded for 3 consecutive months - Accounts officers should call for the CR. 

9. Uncompleted Works - The executive officer should advise the Accounts Officer of the probable dates of completion and submission of the completion reports.

10. Abnormal delay in the submission of reports by the executive officers should be brought to the notice of the Head of the Railway Administration by the accounts Officer.

• Sanctioning of CR: 

1. The authority who accorded the Administrative approval to the work for information or regularisation. 

 

2. Structural & Track Renewal works or Works costing over Rs.2.5 Crores included in the Budget with prior approval of Railway Board or Out of Turn works sanctioned with the administrative approval of Railway Board being beyond the GM’s powers         -   GMs  

 

3. Where Material modification involved or beyond the GMs powers  - Railway Board.  

Accounts verification: 

1. Check that the CRS have been prepared in the proper form

2. Check the entries with the particulars of sanction and  booked outlay. 

3.  Correctness of postings of all final bills in the CR

4. Test checking the correctness of a percentage of other items. 

5. Satisfactory explanations for excesses and savings. 

6. Unused materials are returned to Stores or  transferred elsewhere and the account of work credited with their value. 

7. CRRM - Credits for the Railway Released Materials provided in the estimate - adjusted against the work or not

8. Verification Certificate should state the authority competent to sanction the outlay in the Report. 

Completion Statements: 

• In case of works - Expenditure on such works is within the competence of the Head of Railway to sanction.  Formal CR on the prescribed form need not be prepared. 

• All information required in CR, the Accounts officer certificate and the sanction of the competent executive authority may be recorded in the Works Registers under the relevant columns. 

• E1744 - Completion Statement

1. Reference to estimate.

2. Amount of sanctioned estimate.

3. Actual expenditure as finally booked.

4. Brief explanation of excess or saving. 

Problems facing drawal of CRs

1. Works Registers not being up to date

2. Old works –no Records

3. Final Bills yet to be passed

4. Adjustments pending

5. No Funds

6. Arbitrations and Disputes

7.  Lethargy and Slackness

8.  No adequate  monitoring at higher levels

9.  Frequent changes in staff/Jurisdictions 

10.  Lack of interest & guidance

11.  Large variations in Cost and Sanctions

12.  Non-realisation of Credits 

13.  Vigilance Cases/Audit Objections

14.   Mobilisation Advance remaining unrecovered 

15.  Compensation for land acquisition not finalised in courts

Suggestions: 

1. Reconciliation of Works Registers with the records available in the Accounts Office. 

2.  Draw up provisional CR in case any Arbitration case is pending or balances lying under MAS or MAC (Risk & Cost) 

3. Submission of Part CRs to the coordinating Dept for inclusion in the General CR. 

4. Finally, after the sanction of Competent Authority is obtained, action is to be taken to write to Sr.EDPM to close the work code, for stopping further printing of Works Register.

• accounting and financial principles envisage that the accounts of the completed works should be closed as expeditiously as possible so that the housekeeping in both the Accounts and Executive Departments will be in order.

####