KINDLY CONFIRM THE LIMITS IN VARIOUS RAILWAYS 

 ASSOCIATE FINANCE

HISTORY OF FINANCE DIRECTORATE IN RAILWAY BOARD

WIN FUNCTIONS ARE FINANCIAL ADVICE AND KEEPER OF ACCOUNTS

F A – FINANCIAL ADVISER

C A O – CHIEF ACCOUNTS OFFICER

•         CONSTRUCTION FINANCE

•         STORES FINANCE

•         WORKSHOP FINANCE

•         TRAFFIC FINANCE

•         ESTABLISHMENT FINANCE

The work in the Stores Finance involves

1. Vetting of Indents
2. Vetting of Tabulation Statements & Brief Note
3. Vetting of Purchase Orders
4. Concurrence to Finance Proposals

Vetting of Indents/ANEs: Stock Item:

1. A-Category: vetted by Associate finance.  Quantity tendered to be verified with respect to EAC approved by COS/CMM.  Buffer is taken for 1 month and for Safety/Vital items it is 2 months.  If EAC being adopted is more than 10% of the last three year’s annual consumption, then it is to be indicated in the observation while verifying the tabulation statement.
2. B-Category:  Vetting not required.  Buffer is taken for 2 months and for Safety item it is 3 months.
3. C-Category:  Quantity tendered to be verified with respect to EAC approved by competent authority.

In terms of Rly. Bd. Lr.No.2007/RS(G)/779/1 dt.16-10-08, vetting of NS demand requisition is required only for Safety items above Rs.2 lakhs and Rs.1 lakh for other than Safety item.

u  Approval of competent authority has been taken for floating a tender.  This should be verified with respect to SOP.

u  Description, drawing No., specification No. indicated in the demand to be verified with that tendered

u  Vetted original Indent is placed on file and funds duly certified (more than Rs.1 lakh).

u  Original Indent is placed on file and with funds duly certified (less than Rs.1 lakh).

u  Newspaper clipping is available of file.  The description of the item therein should match with that tendered/indented.

u  In case of amendment to the tender, copy of Corrignedum is available on file.

u  In case of Limited/Special Limited tender attention of all approved sources has been drawn.

 

Essentiality certificate for requisition of Safety item valuing upto Rs.2 lakhs by Field officer at JAG level and above Rs.2 lakhs for SAG level i.e. CWM/ADRM/DRM is needed.

Similarly, essentiality certificate for requisition of items other than Safety items valuing upto Rs.1 lakhs by Field officer at JAG level and above Rs.1 lakhs for SAG level i.e. CWM/ADRM/DRM is needed.

Signing of PAC: Indenting Officer – upto Rs.25,000

                               JAG/SG officer – Rs.75,000

      SAG officer – upto Rs.3 lakhs

     PHOD/CHOD – above Rs.3 lakhs

In case of items required for RSP, NS Indent has to be prepared invariably even if it is a stock item.

 

Vetting of Non-Stock Items Indents

Vetting of tabulated statement of tenders and briefing notes- With the introduction of eTendering,

Vetting of Tabulation Statements &  Brief Note

As per the MMIS programme, the vetting of Tabulation Statement will be as under

If there are no special conditions/PVC etc., given by any tenderers on commercial rate page, the IREPS (Indian Railway Electronic Procurement System) generated tabulation statement duly signed by the tender opening official from Stores and Stores Accounts shall be deemed as vetted tabulation statement and no further vetting by Stores Finance is required.

However, any Brief Note containing details of LPR, availability of Option clause, demand reference etc. should be got vetted from Finance before opening of tenders.

In case any updated manual tabulation statement is required to be prepared for taking PVC/conditional offer rate by tenderers with Account, such manual tabulation statement shall be vetted by Accounts as per existing procedure.

u  Special conditions such as SVC/PVC/FM/LD/ MODVAT/Discount clause have been highlighted.

u  Level of TC to be indicated as per SOP.

u  Briefing Note to accompany Tabulation Statement for Sr.Scale TCs onwards.  COS office Lr.No.S.232.P.2G &P dt.20-06-06 to be followed.

u  All sheets of the Tabulations Statement have to be signed after verification.

 

u  Special conditions enclosed to the AT form to be highlighted while verifying the tabulation statement.

u  Tender documents not signed by the tenderers and tems with financial implications not rounded off by the tender opening officials should be brought out in the observations while verifying the tabulation statement.

u  Counter offer with regard to the tendered description quoted by tenderers, if any, should be specified.

u  Details of LPR/rate from neighbouring Railways has been incorporated in the tabulation statement duly placing copies of the same in the case file.

u  Tenderers who quote FOR/Destination to be highlighted while verifying the tabulation statement.  Split up of costs to be called for purposes of bill passing.

 

Vetting of Purchase Order

Two types of POs are vetted by Stores Finance.

1. More than Rs.10 lakhs:  Purchase involving more than Rs.10 lakhs are finalized through a constitution of Tender Committee.

        POs are made out with reference to TC recommendations and acceptance.

2. Less than Rs.10 lakhs:  Purchase involving less than Rs.10 lakhs are directly finalized without going through the procedure of Tender Committee. 
3. The above powers are applicable only for Stores Dept. and Stores Items of Engg. Dept.
4. Medical Dept. have separate powers of delegation.

Vetting of Pos valuing more than Rs.10 lakhs

The following points are to be scrutinized while vetting a PO.

u  PO has been prepared as per TC recommendations and as per the orders of the accepting authority.

u  It should be ensured that there are no contradictions between the PO and the firm’s offer and subsequent letters withdrawing/modifying certain clauses/conditions based on the Rly’s request.

u  PO terms and conditions viz., destination i.e. FOB, FOR destination etc., inspection agency i.e. RDSO, RITES/Consignee, period of delivery, IRS conditions of contract, price, PVC formula should be specified, applicable rate of ED and CST, freight cost, SVC, MODVAT, payment terms, mode of despatch, EMD/SD, Guarantee terms, validity of offer etc.

 

u  Counter offer acceptance has been received from the firms.  POs should not be placed unless the counter offer has been accepted by the firm unconditionally.

u  As per the Indian Contract Act, a offer when accepted becomes a promise/contract.  Therefore, in order to convert a proposal into a contract, the acceptance should be absolute and unqualified.

u  An acceptance introducing new terms or conditions varying from that of a proposal amounts to a counter proposal and rejection of the original offer unless the party making the proposal renews it or agrees to suggested modification.

u  In case of Stock items, availability of funds is to be ensured.

u  If the value of the Non-stock PO is more than that of the Indent on account of rate, revetting of Indent is not required only additional funds have to be certified by the consignee.  However, if the increase is on account of quantity, then, revetting is required.

u  Developmental/Trial order should be boldly indicated on the PO.

u  If Option clause is available or not should also be indicated.

u  Risk purchase and details of original POs should be clearly mentioned in the Risk purchase tender POs.

u  In case a firm does not accept certain conditions of advance acceptance letter, POs should not be vetted and referred back to the TC.

Vetting of POs valuing less than Rs.10 lakhs

 These comprise of POs where there are no TC for these cases and are prepared with reference to the firm’s offer.

The role of Accounts officer in vetting in such POs acquires greater significance because these are the cases which are accepted directly by the Purchase officer and they have not been deliberated upon by a TC.

The following points are to be scrutinized.
Description/specification furnished are complete
Corrections made in the demand have been attested
Demand is vetted if the value exceeds Rs.2 lakhs in case of Safety item and Rs.1 lakh in case of other than Safety items.

u  Quantity has been reviewed

u  Acknowledgements for limited Tender/Bulletin Tender have been placed on the file

u  List of quality spares/RDSO sources/ICF sources have been placed on the file

u  Status of offer (solicited/unsolicited) with respect  to registration for the subject rate growth.

u  Rate reasonableness

u  Reasons for passing over and acceptance of offers have been recorded on each offer as well on noting side

u  Samples have been submitted if required

u  Technical suitability has been obtained

u  PVC has been updated

u  Funds certification incase of Non-stock item has to be certified by the consignee.

u  In case of Single offer for a Limited/Bulletin tender, Urgency certificate has to be given by a officer not less than the grade of SAG for above Rs.50,000 and by JAG for below Rs.50,000.

u  Apart from the above, rate reasonableness should be certified and the enquiries should have been sent to all the earlier suppliers and acknowledgements to be placed on the file.

u  If the value of Non-stock PO is more than that of the Indent on account of rate, additional funds have to be certified.  However, if the increase is on account of quantity the Indent has to be revetted by Associate finance.

u  NS requisition is to countersigned by competent authority.

u  Freight breakup given in case of FOR destination, inspecting agency indicated, payment terms, price preference/time preference, SV clause, SD, EMD, collection/waiver etc.

Check points for vetting of Modified Purchase Order

Stores Finance section vets MPOs in all cases where financial implications are involved.  The following situation could arise during the currency of contract and which will lead to modification of POs.

u  Extension of delivery period and the funds have to be booked to a different financial year as compared to the original booking.

Check points in the MPO while exercising 30% Option clause:

u  Contract is live i.e. delivery exists or supply are yet to be completed.

u  30% Option clause is available on the original PO

u  Demand is available and is placed on the fie.

u  Approval of competent authority has been obtained for exercising the Option clause.

u  Whether any tender for similar item has been finalized subsequently at a lower rate.

 

WORKSHOP FINANCE

Estimate Vetting – Pink Book, Aw, Umbrella, GM’S OOT

Indent Vetting

Vetting For Calling Quotations

Enhancement Of Imprest

Outsourcing,

Transfer Of Post and Persons, Surrender of Posts,

Vetting Of Tender Schedule

Vetting OF LOA (Letter of Acceptance)

Concurrence for increase and decrease in agreement quantity of items above 25%

With inputs from Ms Banu Regi, Sr SO, O/O FA&CAO/S&W/PER.

 

 

TRAFFIC FINANCE

1. Publicity Proposals –Car Parking, Pay& Use Toilets, Branding of Trains, Commercial Advertisements, CCTV,
2. Station To Station Rates – M/S Dalmia Cements, India Cements,
3. Siding Charges – 96 Sidings In SRLy, Train Engine, Shunting Engine Hours, Haulages Charges Revised Annually By Rb In June/July
4. Goods Proposals
5. Long Term Traffic Contract – extending freight rate stability, certainty and assured supply of wagons to customers during the period for which the agreement is signed   involving more than one Zonal Railway (scrapped by RB).
6. Catering Proposals – mobile/static. Now assigned to M/s IRCTC
7. Vetting of leasing of Parcel trains above Rs 100 Crores. Less than Rs 100 Crores under DRM powers
8. Vetting of Parcel Rates
9. Vetting of Gati Sakthi Tourist train operations 500 trains approximately

 

but vetting of parcel rates is for 500 trains for every year from 1st June and GATI SAKTI is for charter trains operated by private parties and e-payment scheme, maintaining of all BG for all e-payment customers and dealing with all policy matters issued by RB for new proposal.

Coaching and goods proposal for write off regarding EFT ticket and goods closed station will also be received in finance section.

According to SOP powers some proposal will be sent to GM for personal sanction and other will get the sanction of PCCM with the concurrence of FA&CAO.

With inputs from Ms Suganthi AA, Traffic Accounts Office/MAS @ MMC

CONSTRUCTION FINANCE:

In Construction office, finance proposals for all the depts- Engineering, Signal &Telecommunication, Elec are dealt for

(1) Introduction of new USSOR items- (Unified Standard Schedule Of Rates)

(2) Introduction of new Non-USSOR items

(3) Interim variations

(4) Final Variation

(5) Concurrence for special cash imprest and general cash imprest

(6) Concurrence for hiring of vehicles

(7) Miscellaneous finance proposals etc

With inputs from Ms Predeepa Sr SO, O/O FA&CAO/CN/MS