CHAPTER 10
OTHER ACCOUNTING ORGANISATION
AND INTERNAL CHECK
10.1 As explained in chapter 2, the Comptroller
and Auditor General of India has been relieved of the responsibility for
compiling the accounts of the entire Union Government including Union Territory
Administrations except in a few cases. Thus, separate organizations now exist
to deal with the accounts relating to Central Civil Ministries/ Departments and
Union Territory Administrations Railways, Defence and Posts and
Telecommunications.
Central
Civil Ministries/ Departments
10.2 An organization headed by the Controller
General of Accounts has been created in the Department of Expenditure of the
Ministry of Finance and that is entrusted with the responsibility of
(a) establishing and maintaining a technically
sound departmentalised accounting system;
(b) laying down of the form accounts relating to
the Union and State Governments;
(c) administration of the rules relating to the
custody of the Consolidated Fund, the Contingency Fund and the Public Accounts
of India, and for the payment of moneys into and withdrawals of money from such
funds the rules are contained in the Central Treasury Rules/Central Government
Accounts (Receipts and Payments) Rules, 1983;
(d) consolidating the monthly accounts of the
Union Government from the monthly
accounts prepared by the various Central Pay and Accounts Offices and the State
Accountants General/Directors of Audit
(e) preparing the annual accounts, commonly
known as Union Government Finance Accounts showing under the respective heads,
the annual receipts and disbursements for the purposes of the Union Government
and also summarised Civil Appropriation Accounts, comparing the actual
expenditure under various grants/appropriations with the amounts of voted
grants/charged appropriations as specified in the schedules appended to the
Appropriation Act passed by Parliament.
10.3 Under the departmentalised
accounting system, the Secretary of the Ministry/Department concerned acts as
its chief accounting authority and discharges his functions through and with
the assistance of the Financial Adviser of the Ministry/Department.
10.4
The Financial Adviser, for and on behalf of the Chief accounting
authority, is responsible for:
(a)
preparation of the budget of the Ministry/Department, allocation of the
budget to various wings/formations of the Ministry/Department;
(b) arranging of payments through the
Pay and Accounts Offices/Principal Accounts Office of the Ministry/Department,
payment of salary and allowances retirement benefits, etc. to Government
employees; loans and grants to State/ Union Territory Governments, statutory
bodies, companies etc; cost of stores supplied against contracts entered into
by the Ministry/ Department;
(c) compilation of the
monthly/annual accounts of the Ministry/department in the prescribed form and
its rendition to the Controller General of Accounts for consolidation of the
accounts of the Central Government; preparation of the annual appropriation account
in respect of grants/appropriations of the Ministry /Department concerned, and
their rendition to the Controller General of Account after audit by the
accredited Audit offices and signatures by the Chief Accounting Authority;
(d) introduction of a
Management Information System (MIS) suited to the functions and requirements of
the Ministry/Department;
(e) internal audit of payments and accounts from
the records maintained by the various secretariat and field formations, and Pay
and Accounts Offices of the Department; etc.
10.5 The Financial Adviser discharges his
functions through the departmental Pay and Accounts Offices functioning at
various stations of the country and headed by a Principal Accounts Officer- the
Chief Controller of Accounts (CCA), Controller of Accounts (CA) and the Dy.
Controller of Accounts (Dy.C.A.) as the case may be.
Railways
10.6 The Accounts Department of a Railway
Administration is mainly responsible for:-
(a) keeping the accounts of railway in
accordance with the prescribed rules;
(b) the check with reference t rules or orders
(Known as Internal Check) of transactions affecting the receipts and
expenditure of railways;
(c) prompt settlement of proper claims against
the railways;
(d) tendering, as part of its important
functions advice to the administration when ever required or necessary in all
matter involving railway finance;
(e) compilation of budgets in consultation with
other departments and monitoring the budgetary Control procedures as may be
laid down in the relevant orders and Code rules from time to time;
(f) generally discharging other management
accounting functions such as providing financial data for management reporting,
assisting inventory management, participation in purchases/contracting
decisions and surveys for major schemes in accordance with the relevant rules
and orders.
10.7 At the Apex is the Financial Commissioner
(Railways) who controls and coordinates the various financial and accounting
responsibilities entrusted to the Railway Accounts Department. The Executive
Director Accounts who works under the Financial Commissioner is the
professional agent of the Railway Board in Accounts Matters. In this capacity,
he organizes, trains and controls, from the professional point of view, the
railway accounts establishment as a whole, and is responsible for its
professional efficiency as also for the correctness of accounts and accounts
procedure. In the discharge of these responsibilities he will issue
instructions to the Financial advisers and Chief Accounts Officers relating to
the preparation and submission of the accounts and the returns required by the
Railway Board and on all other accounting matters including those which might
have an administrative aspect and besides carry out inspections of their
offices.
10.8 The head of the Accounts Department of a
Railway Administration is known as the Financial Adviser and Chief Accounts
Officer who renders advice to the General Manager on financial matters and also
manages the payment and accounting functions. In the discharge of these
functions he it assisted by the Additional Financial Adviser and Chief Accounts
Officer, the Deputy Chief Accounts Officers, senior Accounts Officers, Junior
Accounts Officer, Assistant Accounts Officers etc., located in the Headquarters
office or attached to the Divisions, Workshops, Stores Depots and Construction
Project of the railway. The size of the organization may vary depending on the
nature and volume of work in the Accounts Department of each Railway
Administration. The Financial Adviser and Chief Accounts Officer exercise such
powers as may be delegated to him by the General Manager*.
* More details about the Railway Accounting
system are in Chapter 27.
🔲.Of
the following, which one’s accounts are not being maintained by the Accountant General?
(A) State
Govt
(B) Railway
(C)
Foreign Services
(D)
Parliament
Defence
10.9 All defence matters having financial and
accounting implications are dealt with by the Finance Division of the Ministry
of Defence which is headed by the financial Adviser (Defence Services). The
role of Financial Adviser is to render financial advice to Defence Services on
all matters of Defence and to ensure adequate financial control over Defence
expenditure. Following the scheme of integrated Financial Advisers in the
Government of India in 1975, such Advisers have been appointed in the Departments
of Defence Production, Defence Supplies, Research and Development and
Department of Defence. The Integrated Financial Advisers and their officers
function under the administrative control of Financial Adviser, (Defence
Services).
10.10 The Financial Adviser (Defence Services)
is the Chief Accounting officer of the Defence Services. Consequent on the
departmentalisation of accounts in the Government of India, the Defence
Secretary has been designated as the Chief Accounting Authority of the Ministry
of Defence. The Financial Adviser assists him in discharging this
responsibility.
10.11 The Controller General of Defence Accounts
maintains the accounts of the Defence services and undertakes internal audit of
Defence expenditure and receipts. The organization of the Defence Accounts
Department corresponds broadly to the organization of the three services. The
Controller General of Defence Accounts also functions as the Principal Accounts
Officer of the Ministry of Defence responsible for payment and accounting
functions relating to the Ministry of Defence form October 1, 1976 consequent
on the departmentalisation of the accounts in the Ministry.
Budget Estimates
10.12 The Budget Estimates of Defence are
prepared by the Financial Adviser (Defence Services). The estimates are
presented in five parts (in the form of demands)- one each for Army, Navy, Air
force and Pension and one on Capital Account. Budgetary control is exercised by
the Principal Staff Officers at Service Headquarters; Budget allotments are made
by the service Headquarters to lower formations and the expenditure monitored
against the allotment*.
Posts
and Telecommunications
10.13 Accounts relating to Postal Services and
Telecommunication Wings were under a Combined Posts and Telegraphs Board until
December 1984. From January 1, 1985 these two wings were bifurcated and two
independent Departments of Posts and Telecommunications were formed under the
Ministry of Communications. These two Departments are responsible inter-alia
for compiling and consolidating the accounts of the respective Departments,
preparing the monthly accounts and rendering them to the Controller General of
Accounts and for preparing the annual Appropriation Accounts and Finance
accounts. For the purpose of accounts administration, the Department of Posts
has been divided into circles and each postal circle is under the charge of a
Director/ Deputy Director of Accounts. Similarly the Department of
Telecommunications has constituted Telecommunication Circle, Telecommunication maintenance
circle and stores and Factory Organizations each of which is under the charge of a Chief
Accounts Officer. In each circle there is also an Integrated Financial Adviser
who renders financial advice to the Head of the Circle. The Director/ Deputy Director
of Accounts and the Chief Accounts Officer complies the accounts and renders
them to the Director General, Post and the Director General, Telecommunications
respectively.*
* More details about the organisation and
working of the Defence Accounts Department are in Chapter 28.
* More details about posts and
telecommunications accounts are in chapter 26.