The Objectives of Principal Controller of Defense Accounts(Navy) Mumbai Are to Ensure

INTRODUCTION

The objectives of Principal Controller Of Defense Accounts(Navy) Mumbai are to ensure: i) that Pay and Provident fund accounts in respect of officers and sailors of the navy are correctly maintained by I.N. Pay Office. ii) that payment of dues of civilian personnel of Unit/ Formations of the Navy is made timely. iii) that prompt payment and adjustment of all supplies and services rendered to Navy. PCDA(Navy) Mumbai is responsible for : i) Audit and Payment of contingent and miscellaneous expenditure of Naval Ships and Estts. ii) Preparation of cost accounts of Naval Dockyard Mumbai. iii) Local Audit of all store accounts and public fund cash accounts. iv) PCDA(Navy) also provides audit and accounts cover to Coast Guard organisation. The office of the PCDA(Navy) is divided into different sections and Sub-offices whose functions are described in brief in this document. 2 CONTENTS

1. Accounts 3 2. Cost Audit Cell 9 3. Costing 23 4. Fund 34 5. Imprest 43 6. I.R.L.A. 64 7. Local Audit 78 8. Pay 83 9. Store 87 10.Transportation 114 11.Wages 136 12.Coast Guard 169 3 PCDA (NAVY), MUMBAI

ACCOUNTS SECTION

Amongst the manifold duties and functions of PCDA (N), he is responsible to –

i) Collect accounts of all receipts and disbursement in so far as it relates to Indian Navy and Indian Coast Guard Organization. ii) Transfer the accounts pertaining to other audit circles that have originated in his area and adjust the accounts transferred in by other Accounts Officers. iii) Keep watch over the progress of expenditure against the sanctioned allotments and bring out the cases in which the progress of expenditure is abnormally high or unusually low. In the discharge of the above mentioned duties/ functions, Accounts Section in the PCDA (N) office under takes following items of work as per the procedure explained against each: -

(A) RECEIPTS/ REMITTANCES TO NAVY/COAST GUARD-

The various receipt due to the organization on account of auction sale of unserviceable stores/equipments, scrap items, services rendered to other departments/ministries, Private parties, revenues due from Defence properties etc. are deposited in the banks/treasuries in the form of Cash/DD/Cheques etc by the parties concerned for remittance into Govt. account favouring PCDA (N) by means of Military Receivable Orders (MROs). The banks/treasuries viz; RBI Mumbai and its branches as well as SBI branches and it’s subsidiary bank branches who receive the amount maintain an account of the same and follow the under mentioned procedure:- (i) RBI Mumbai and other RBI branches submit a daily statement of receipt (Daily Main Scroll) along with duplicate copies of MROs (DMROs) indicating the amount received and credited to Govt. Account. Similar statements unsupported by DMROs will be rendered by the SBI and its subsidiary branches. However DMROs copies relating to SBI remittances are forwarded to PCDA (N) by the SBI Focal Point Branch Mumbai through DMS. (ii) The correctness of the amounts remitted as per DMROs will be verified in the scrolls and financial adjustment as under is carried out to reflect the transactions in the accounts of PCDA (N). In addition the RBI and its branches as well as SBI focal point branch submit Datewise monthly statement showing the receipts for each month which will be checked/reconciled and one copy returned to duly endorsing the result of verification. 4 Receipts Charges (+c) (-c) (RBI deposit) 00/021/00 ……. ___ (Suspense) 00/020/80 ____ ……

(iii) Accounts section will also reconcile the said amount in the monthly settlement account of receipts and payment received from RBI Central Accounts Section, Nagpur and un-reconciled amount if any will be transferred to RBI suspense account (Unclassified) (020/83) and pursue with the concerned banks/offices for reconciliation/clearance. (iv) The DMROs received from the banks as stated above will be entered in a register (Register of DMROs) with full particulars and kept separately duly filed for record. (v) Original copies of the MROs received by the party from the banks will be received by the concerned audit sections/Sub Offices under PCDA (N) through the connected units for financial adjustment and further action. The audit section\n will adjust the OMRO by operating Class II PM as under and forward the same duly quoting the TE No. and month of adjustment through their monthly report of MROs adjusted to Accounts Section:- 00/020/80 (+) C and contra adjustment to relevant RDR/Service head. This adjustment will relieve the initial booking under 020/80 (-) C done by Accounts Section. (vi) Accounts Section will link the OMROs received as stated above in the DMRO register duly quoting the TE NO. and Month of adjustment and list out the unlinked DMROs and write to the concerned audit section to carry out adjustment if not already done. A copy of the DMRO will also be sent for their ready reference. Similarly Accounts Section will also take out a list of DMROs not received from the banks and report the matter to the concerned bank/Unit and finalize the case on merit. (vii) After the closure of the financial year the MRO adjustment carried out as stated above will be reconciled with the MRO register and balances if any outstanding will be shown in the annual review of balances report rendered. Such outstanding will be cleared in the subsequent years. 5 (B) PAYMENT TO NAVY/COAST GUARD- SETTLEMENT OF ACCOUNTS WITH RBI: -

Various payments due to Naval and Coast Guard Personnel as well as Civilians towards Pay and Allowances, TA/DA, LTC etc and for supplies and services rendered by other agencies are audited and paid by the concerned audit offices/Ships/Estt. by means of Cheques.

Accounts Section received daily main scrolls along with the paid cheques from the RBI Mumbai and other RBI branches for RBI transaction. Similarly paid cheques relating to SBI and its subsidiary banks are received from SBI focal point branch through the daily main scrolls. In addition the RBI and its branches as well as SBI focal point branch send a date wise monthly statement for each month (DMS). These statements along with the paid cheques will be checked and paid cheques handed over to the concerned cheque linking task holder duly batched and controlled. One copy of the statement is returned to the bank duly endorsing the result of verification. The following financial adjustments are carried out by Accounts section to bring these transactions in the books of PCDA (N).

Class II Punching Media:

00/021/00 (+) R (Amount of paid cheques as RBI deposits) 00/020/81 (-) R (Clearance initial booking to cheque and bills while making payment)

The amounts adjusted on a monthly basis as stated above will be checked with the Monthly settlement account received from the central accounts section RBI, Nagpur. Differences if any in the amount adjusted to RBI deposit account with the RBI statement will be corrected and transferred to RBI Suspense account (Unclassified) for reconciliation/ clearance. The end result of all these transactions will also form part of the annual review of balances report rendered.

C) LINKING OF PAID CHEQUES, PREPARATION OF MONTHLY UNPAID CHEQUES DATA AND ISSUE OF NO PAYMENT CERTIFICATE :-

Accounts section receives Schedule-III on a monthly basis showing the details of cheques issued by the Disbursement section under PCDA (N) Main office and Sub offices in both soft and hard copies. In additions, the Naval Units/Ships etc authorized to issue cheque render monthly cheque statements. The data of the cheques issued as stated above will be fed to the computer in the OAP system on a monthly basis. Thereafter the details of paid cheques such as Cheque No., date, scroll date and amount of cheque will be fed to the computer. In this process the paid cheques get linked with the Schedule III/Cheque statement data. Since the validity of the Defence cheque is for three months excluding the month of issue, the month wise unpaid cheque statement is taken out after the expiry of the said period of time and 6 necessary letters issued to the concerned banks for ascertaining the position, whether the subject cheques have been received by them and cleared or not. The outcome of the bank reply will also be communicated to the audit section/unit concerned. Cases where the cheques issued as above could not be presented to the bank due to loss in transit or misplacing etc, authorization for issue of fresh cheques will be issued by Accounts section on receipt of specific request from the office that issued the cheque with the copy of Non Payment Certificate, copy of Stop Payment Order etc. issued by the bank as well as Indemnity Bond. Authorization for issue of fresh cheque will be issued on taking necessary safeguard to avoid double payment to the beneficiary. In case of time expired cheques, verification of the fact with reference to the unpaid (unlinked) cheques statements will suffice.

(D) SETTLEMENT OF ACCOUNTS WITH MINISTRIES SUCH AS EXTERNAL AFFAIRS , HOME , DEFENCE ETC.

Naval and Coast Guard organizations render services such as imparting training to foreign Naval personnel, sending the personnel on deputation to other deptts/ ministries etc. In such cases, the cost of training expenses as decided and sanctioned, pay and allowances , other incidentals etc. are due from the concerned beneficiaries. The expenses so incurred will be compiled to the suspense head of account pertaining to the concerned Ministry by the audit sections and after the closure of the month’s account, they submit the detailed account with the copies of the sanction etc. to Accounts section. Accounts section will check the correctness of the amount with reference to the printed actuals and prefer claims with all supporting vouchers/ sanction etc. against the Pay and Accounts Officer of the Ministry/ Deptt. with a request to issue a cheque/ D.D. in favour of PCDA(N). The D.D./ cheque when received will be deposited in the bank through MRO and on receipt of T.R., the suspense head of account operated will be relieved by means of a class II punching medium and the account settled. Necessary register showing the payment and settlement is maintained by Accounts section . Accounts section also takes stock of the monthly bookings to suspense heads by the audit sections and calls for claims which have not been received after the closure of the month.

E) SETTLEMENT OF ACCOUNTS WITH RAILWAYS, MINISTRY OF COMMERCE (DGS & D) AND P & T

The cost of Railway warrants issued to Naval and Coast Guard Officers for journey by rail, payments made to DGS &D contract suppliers, value of services rendered to Navy by Deptt. of P & T are debited to the account of PCDA(N) through RBI, CAS, Nagpur. Accordingly, RBI, CAS, Nagpur submits debit advises to 7 this Office. The amounts intimated through such advices are taken as RBI deposit with contra debit to RBI Suspense (classified) . The supporting vouchers against the amounts due to be received within six months from the date of transaction will be scheduled to the concerned audit section for relieving the RBI (classified ) suspense booking and debiting the service head. Where the vouchers are not received within six months from the date of transaction, the above booking is reversed and credit advice watched.

F) MAINTENANCE OF DEBT HEAD REGISTERS AND WATCHING LIQUIDATION OF INTEREST BEARING ADVANCES

Necessary record of interest bearing advances such as House building, Motor Car, Scooter, Personal Computer etc. as and when sanctioned are audited and paid by the concerned audit sections under PCDA(N), Main Office and sub-offices and the expenditure compiled to relevant Dr/ Cr heads.

Every month, Accounts section receives the supporting schedules towards Dr/. Cr compilations made by the sections/ sub-offices on the above account. Accounts section posts the payment/ recovery of the monthly instalments in the register maintained for the purpose. The correctness of the amounts compiled to the respective heads with the schedule amounts are also reconciled on a monthly basis.

Before liquidation of the advances , the concerned audit sections will submit the statement of advance with recovery particulars and the interest due proforma to Accounts section, which will be checked with the requisite registers and correctness or otherwise intimated to enable the audit sections to clear the demands outstanding against the personnel.

Accounts section is also the custodian of HBA documents lodged with the department in respect of Naval Oficers, Sailors and DAD Officers and staff.

G) SUSPENSE HEAD BOOKINGS AND CLEARANCE

Every month, after the receipt of sectional compilation and All-India printed compilation, Accounts section will conduct a review of the same and identify the sections , sub-offices (section-wise) , in whose account suspense head bookings appear. The possible reasons for such bookings are :-

1) Operation of fictitious code heads 2) Mismatch in the opening and closing cash balances with previous month’s closing balances 3) Submission of unbalanced punching media to EDP Centre. 8

In the above cases, EDP Centre/ Computer center of CGDA Office compiles the differences to 020/61 (Miscellaneous suspense ) with the prefixes such as 28,29,30 and 75 . Accounts section will identify the concerned section and monitor its clearance/ rectification.

The Dr/ Cr voucher in support of the amount adjusted will be sent to the concerned audit section for further action.

H) PROGRESS OF EXPENDITURE ON FUNDS ALLOTTED

Accounts section conducts a monthly review of the expenditure against allotments .Cases where the expenditure is abnormally high or unusually low is taken up with the concerned budget holders for obtaining additional allotment of funds or for surrender of funds allotted in excess of anticipated expenditure so that the surplus amount can be utilized by the needy units.

I) ADJUSTMENT OF DID SCHEDULES

DID schedules regarding transfer of Dr/ Cr pertaining to the accounting area under PCDA(N) that originated in other Controller’s Offices when raised by them are received in Accounts section centrally. Accounts section will respond these DID schedules and send one copy of the punching medium (class VIII Vr) to the edp center for compilation and clearance from the list generated centrally by EDP Centre, Meerut. The Dr/ Cr voucher in support of the amount adjusted will be sent to the concerned audit section for further action. *************************** 9 Cost Audit Cell

PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS (NAVY) MUMBAI 400 039 Role: Functions and Responsibilities of Cost Audit Cell Objective

The objective of Cost Audit Cell is to ensure that the payments to Mazagon Dock Limited are made promptly and correctly in accordance with the contracts entered into with them by Govt. of India for Construction, Repair/refit different types of Naval (Vessels).

Duties of C.A. Cell

The Cost Audit Cell located in Mazagon Docks is responsible for:

a) Conducting audit of expenditure relating to repair/refit of Naval Ships, construction of Frigate and other vessels for the Indian Navy by Mazagon Dock in accordance with the procedure laid down in this chapter when the contract for such repair/refit, construction is on a cost plus basis.

b) Sanction of Government is issued in respect of each construction indicating the total expenditure and F.E. Cost. Similarly expenditure sanctions are issued by CFA (Govt./CNS/FOC-in-C) for each repair/refit work.

c) The contracts are entered into with Mazagon Docks by Government for each construction. In respect of repair/refit, contracts are entered into by NHQ on the basis of model contract approved by Govt.

d) On receipt of the sanction for each repair/refit, construction etc. relevant particulars such as date of commencement of work, reference number allotted, Job Nos. approved etc. will be called for from Mazagon Docks and Naval Warship Overseer known as W.P.S. stationed at Mazagon Docks by NHQ.

e) All payments to the Mazgon Dock in terms of the contract agreements are made by Store Section of Main Office and copies of paid bills are sent to Cost Audit Cell for conducting Cost Audit.

f) The receipt of subsidiary documents from Mazagon Dock for audit will be 10 watched by Cost Audit Cell with reference to the paid bills received from Stores Section.

g) The Cost Audit Cell will also carry out pre-check of final bills before they are forwarded to Stores Section for payment.

h) On completion of the audit, objections, if any, will be issued to the company and entry to that effect made in the Audit Progress Register. Progress of settlement will also be watched through this Register.

Objects of Audit

It will be ensured that in audit that :

(1) Sanction for the execution of work exists.

(2) The cost of the work has been correctly arrived at as per the contract agreement and does not exceed the ceilings sanctioned by Government.

(3) That the charges booked against various cost accounts such as labour, material, overheads, direct purchase, etc. are correct and the rates admitted for labour and material including overhead and hire charges for the use of company’s own plant are correct with reference to the schedule of approved rates.

(4) Indirect charges covered by overheads are not levied directly also.

(5) The work is completed within the stipulated period.

(6) There is no deviation from the terms of the contract without proper approval.

(7) Stores purchased specifically for a work have been fully utilised on that work and not issued to other without proper authorisation.

(8) Charges are booked to approved job only.

(9) The amounts drawn in excess are promptly refunded to the Government.

Scope of Audit

MDL is almost enjoying monopoly in the field of ship construction in this country. The jobs in this yard are labour oriented. Although it is laid down in the 11 contracts that materials of various nature are to be obtained at controlled prices, the major portion of expenditure on material is incurred on specific items available with specified su8ppliers such as HAL, BEL, ITI., and Ministry of Defence, London. Any cost control in this regard is even beyond the shipbuilder's capacity. The present scope of audit conducted by this section does not cover cost control and cost reduction. This section is entrusted with the task of verifying the actual cost of construction of Naval and Coast Guard Vessels and repair work, which in effect is nothing beyond a post-verification of the expenditure incurred. The contracts so far concluded with M/s Mazagon Dock Ltd. are on cost-plus basis where the stress is only on the actual cost.

Cost plus costing is really not a technique of Costing, it is a basis for billing. In this system instead of fixing up the contract price in advance, it is fixed as cost plus some % towards emergencies like war, when there is no time left for working out details for arriving at the contract price or when the specifications of the Ship Building is not made ready and "go ahead" sanction is for execution and hence precise price can not be fixed in advance. However, this type of system is Prone to be misused by the contractor. Hence the audit of the cost incurred is required to be carried out by the Contracttee delightly and a great deal of inspection/Supervision is also required to accept the figures of quantities of various materials used on the contract.

The expenditure on construction of boats/vessels and repairs thereof is classified into various elements as detailed below:

1) Labour – The element 'Labour' represents the employee costs in respect of all the workmen working directly on production jobs.

2) Material with material overheads

3) Subcontract

4) Own Plant Usage, Docking and berthing charges

5) Profits

6) Direct purchase material (indigenous and imported stores)

7) Freight, Insurance & Clearance charges 12 8) Direct expenses

9) Facility hire

10) Advances paid to MDL

11) Long Term Loans (Rescheduled Loans)

12) Annual adjustments (Variance)

13) Verification of Overhead

14) Verification of Standard Labour Recovery Rate (SLRR)

15) Case Study of Material procured by MDL.

The Cost Audit Cell is authorised to carry out post audit (except pre-audit of profit expenditure) as mentioned in the O.M.VII Chapter XV on the expenditure incurred on the Cost elements mentioned above. Few important audit checks are given below:

Expenditure wise audit is conducted as under: 1) Labour with labour overhead: 1. It is verified that total shown in the bill should be as per labour tabulation and labour summary. 2. It is verified that Category of Labour, Man-hours, Man-hour cost including overtime & overheads are worked out correctly in Labour Tabulation based on Labour Rate List. Which is promulgated by the MDL from time to time. 3. It is verified that expenditure claimed are pertain to particular yard (Ship). 2) Material with material overheads: a) Verification of billed amount with total of material listing and summary. b) It is verified that Material Tabulation should supported with all Material Requisition. c) It is verified that Material O.H. worked out as per fixed overhead rate( at present it is 5 % of landed cost) and it pertains to specific yard (Ship). 3) Sub Contract: a) It is verified that orders placed for Sub Contract are approved by the WPS and after obtaining the Comparative Quotations, as far as possible. 13 b) Sub Contract's bills are countersigned by the WPS in terms of acceptance of rates and of the work having been completed satisfactorily. Bill should be supported with the completion certificate. c) Rates claimed are verified with orders/rates received in the section.

4) Own Plant Usage, Docking and berthing charges a) It is verified that bills supported with report shows the nature of equipment and the period. It is verified that such items are not included again in the list of Plant and equipment for working out depreciation for O.H. b) It is verified that charges are not claimed for holiday. It is as per the notified rates. c) It is verified that OPU charged @ 4% of Labour O.H.(Rate specified in the Contract). OPU charges are not admissible after commissioning of Ship. 5) Profits: a) Profits should be at the percentages specified in the contracts (At present it is 7.5%) on amounts finally accepted by WPS and CDA (Navy). b) No profit elements is charged on following item * Navy supply items including fuel, oil and lubricants issued by Navy on which MDL are not required to undertake any work and the items are made available as and when they are required * Cost of equipment, machinery, stores of Navy supply items * Equipment hire charges and dry dock hire charges * Sub-contract amounts including supervision charges * Hire charges for own usage plant items. * Electrical energy supplied to shops. * Sale tax (claimed by MDL for works executed on the contract). c) Profit is not admissible on disputed expenditure, recovered amount, scrap material, Liquidated Demurrages recovered. 1) Direct purchase material (indigenous and imported stores): a) Arrange copies of the purchase orders and filed serially and call for copy of 14 missing purchase orders from MDL and amendments wherever issued. b) Enter the full particulars of bill in the bill dairy project/Yard wise. c) Call for copy of purchase order for direct purchase /imported paid bills together with invoices, Procurement Advice, Goods Receipt Note etc. after posting in the register of expenditures. d) All payments made including the advances paid are noted on the reverse of the copy of the purchase order in the file e) Correctness of the payments in the bills is checked with reference to the rates etc. indicated in the supply order f) Verify that Items of store have been taken on charge in ledger by the MDL separately for each Project and Yard. The ledgers are audited periodically to ensure that items have been struck off from ledger duly supported by issue vouchers as duly certified by WPS. g) In case of stores short landed, the value will be placed under objection and refund looked for in audit. h) Stores remaining un-issued (surplus material) after completion of Project are either transferred to other Project or to Navy stocks or their disposal arranged with the approval of Navy. i) In respect of imported items, on receipt of advices of payments from store audit section, obtain invoice or statements of store transactions in respect of various items for which payments are made. The detailed audit is carried out in the similar manner as stated above for credit verification in ledger and other points. j) In respect of air lifted imported items ensure that item should issued to project immediately without delay. Reason may call for from MDL/WPS for air lifting of material and their urgency. k) In case of Navy Supply (Fuel, oil, lubricants issued for sea trials), on receipt of one copy of issue voucher, from consignor LAO of the Naval Store Depot, verify whether items have been taken on ledger charge by MDL or in case of direct issues to Project, copy of the issue voucher with MDL is certified by WPS as for other issues. l) Ensure that the bills bear enfacement of payment, they relate to the 15 particular contract for repairs, the direct purchase orders is available, the amount shown in the bills are arithmetically correct as per rates and quantities shown in the orders. m) Discounts, rebates cost of rejections inspections etc. are deducted from gross amount and the amount has not been claimed twice or at more than what has been paid to the supplier. n) The rates have been adopted correctly in the bills as per purchase order and acknowledgement of receipt by shop representative exists in the Inspection Report. 2) Freight, Insurance & Clearance charges a) Freight, Insurance and clearing charges for imported stores give reference to indent number and sometimes also to the invoices. Conduct the audit with reference to these indent number and invoices b) Verify that the charges relate to Navy work and are not disproportionate to the cost of stores. Verify that the amount claimed is correct. c) The rates of clearance charges in respect of items selected for detailed audit will be verified with the contract documents. d) In the case of air-freight charges, it will be seen that urgency is established or technical reasons for which air lifting become necessary is explained. Where any advances are already paid, it will be seen that the same is not claimed in full at the time of final payment. Ensure that these items are immediately issued to project without delay. e) Any double claims or incorrect claims are placed under objection. Overhead not admissible on Freight, Insurance and Clearance Expenditure 8) Direct Expenses a) Expenditure on Training expenses incurred in India and UK of ship builder’s personnel for the project., Payments for British personnel working in frigate project, Expenditure on Indian Project Frigate office(IPFO), London, Salary directly chargeable to MDL personnel working in Project Cell of the Yard and Technical aid fee are admissible. b) Ensure that the statements showing the details of payments made under various heads comprising the D.E. of project are submitted in support of 16 the amount billed. c) All the vouchers are produced in support of the statement, billed amount are tallied with these vouchers and wanting vouchers are placed under objection d) The arithmetical calculations are correct. The charges pertain to the Navy project and have been correctly levied to the different Yard/Project and no extra ordinary charges are booked to project. e) In respect of items of pay and allowances selected for check, the rates and amounts claimed are as per terms of service condition and authority. Ensure that number of staff not exceeds as approved by MDL for deployment of staff to the Project and Yard. f) The charges claimed are covered by the terms of agreement. Any item not so covered should be placed under objection. g) The technical aid fee and I.F.P.O. fee are as per contract entered with the shipbuilders in U.K. h) MDL staff salaries are claimed under Direct Expense. Ensure that the rates charged are as per DEPC (Direct Expenses against Project) recovery rates and verify that the total number of staff salary not exceed with their actual strength. Prepare the summary of the expenditure claimed for all the project/yard and compare with the actual strength. Details are available in Pay Roll section of MDL i) In case of Russian/Foreign Specialist Expenditure ensure that the same charges are not claimed against other ship by preparing & comparing the summary for each ship for corresponding month. Verify the Expenditure on passage and baggage with reference to ADS. No. 9) Facility Hire 1. Charges claimed from CDA (Navy) are with reference to facility hire report prepared by shops indicating the nature of equipment and the period for which they are used. The items are listed in mechanical tabulations 2. Reports produced cover the full amount claimed for CDA(Navy) and for the work relating to the particular contract. 3. The period of hire and the rates charged are in line with the rates notified by 17 MDL from time to time and as per term contract, rate contract, agreement between party and MDL. 4. Charges are not claimed for holiday or other times when the sections/shops are not working. 5. The transportation provided to WPS is countersigned by the WPS. The other supporting document such as car diary signed by users, user’s certificate and moment details of vehicle should enclosed with the bills 6. Verify the Project and Yard No. Ensure that charges are apportioned to the Project/Yard correctly. 7. Prepare the summary of transportation expenditure Project and Yard wise. Analyse and compare this summary for relevant month. Enter the details like period of utilisation, car no., total runs in K.M., Name of the users. If transportation used by the WPS staff for other purposes not related to Navy work, raised the objection. 8. Overhead not admissible on Facility Hire Expenditure. Verify the expenditure of ADS No from MDL (Project Account section) 10) Advances Paid to MDL a) Enter these advances in advance register with full details b) Watch their adjustments through paid bills received from Store section (Adjusted in the bills). Call for the related document from MDL c) Enter the adjustment details like Bill No. and date, Amount, D.V. No., Project No., Yard No., Purchase order No., Party Name, Brief Description of item in the register against the advance amount.

11) Long Term Loan (Rescheduled Loan) a) Enter the Long-term loan details in the register with full details like Bill No. and date, Amount drawn, D.V. No., Project No., Yard No., Purchase order No., Party Name, Brief Description of item and sanction number and date in the register. And Call for the related document from MDL b) Ensure sanction of Government/NHQ and related contract/ agreement 18 for payment, confirm the amount to be recovered and number of installments and watch this payment. Enter these details in the register. c) Prepare the monthly summary of Long term loan showing the outstanding amount Project No. and Yard No. wise. d) Conduct the audit with existing government orders, contract and agreement between MDL and the party. 12) Annual Adjustment (Variance) 1. Verify the yard No. and Project No. Enter the details in Bill diary. 2. Verify the calculation, expenditure and enclosures with reference to element wise register for the year in respect of each nature of expenditure. 3. Ensure that expenditure pertains to Navy project and for which the Store section had passed the bills, from Bill Diary 4. Ensure that in case of excess expenditure, credit should be afforded to Navy. 13) Verification of Overhead Rate 1) Overhead expenses actually incurred during a financial year are compared with the overhead recovered on the basis of recovery rates fixed in advance and suitable adjustments are made by the company for the excess / under recovery (Annual Adjustments i.e. variance) 2) The item-wise break-up of actual overhead expenditure during a financial year is obtained from the company and scrutinized. The amount shown against items like depreciation, interest on loans, maintenance etc. should be tallied with the figure shown in the published Profit and Loss Account of the company audited by company auditors. 3) Verify the amount shown against items like depreciation, interest on loans, maintenance etc. from vouchers and data available in MDL (MIS Sn) 4) In regard to other items of expenses, obtain the monthly break up from the company and figures for one month in a year checked with vouchers e.g. in respect of salaries of Accounts Department, the amounts shown in the break-up is verified with pay bills concerned. 5) Ensure that the expenditure recovered directly from Navy is not included in the overhead expenses e.g.: - Kasara basin hire charges. 19 6) Verify that the pay and allowances of store and purchase department of MDL are not taken for calculation while fixing the labour overhead as same expenditure are already taken for calculation of Material Overhead. 7) Ensure that Material Overhead comprises of pay and allowances of store and purchase department of MDL only, and no other expenditure are booked. Verify the expenditure with vouchers available in MDL. 8) Overheads are not admissible on Own Plant Usage, Rent charged for accommodation, Direct expenses, subcontract (including contract for labour) 9) Ensure that the expenditure (Element) claimed under Facility hire, Subcontract and Freight Insurance and clearance charges are not included in the overhead expenses 10) Ensure that element covered under Standard labour recovery rate and Direct Expense against Project i.e. DEPC rates are not included in the overhead expenses 11) MDL claim the Salary of officers, clerical and sub staff in Direct Expense bill, ensure that the same expenditure are not included in the overhead expenses, by comparing with actual strength. 12) Idle and indirect labours cost are not included in the overhead expenses as MDL claiming these expenditure through Labour and Labour overheads Bills 13) The few elements are common in Overhead expenditure and standard labour recovery rate. Ensure that same expenditure are not included in the overhead expenses. They are Medical Expenses, Canteen Subsidy, Vehicle allowance, P.F. Trust administration Expenses, Travelling Expenses 14) Ensure that some time company including the certain elements in their overhead expenses, which requires Govt./NHQ approval/sanction. Fore e.g. expenditure on VRS is included in overhead expenses, in such case raise the objection 14) Verification of Standard Labour Recovery Rate 1. Verify the strength of the labour from their pay bill. 2. Verify that the rates at which labour charges are claim are actually paid to the labour. 3. Prepare the category wise summary of monthly labour charges claimed by the MDL and verify the expenditure with reference to their element wise break-up 20 and ensure that these expenditure are correctly booked to these heads (Element) for normal and overtime man-hours booked from MDL (Pay roll Section) 4. Ensure that element considered for calculation of Standard Labour Recovery rates are not repeated in Overhead Expenses and Direct expenses against Projects (DEPC) rate. 15 Verification of Direct Expenses Against Project (DEPC) 1) Verify the strength of the Officer and Staff working for Navy Project through Pay Bill. Verify the sanction for deployment of staff from MDL 2) Verify that the rates at which charges are claimed are actually paid to staff. 3) Prepare the category wise summary of MDL Staff Salary claimed under Direct Expenses Bill and verify the expenditure with reference to their element wise break-up and ensure that these expenditure are correctly booked to these heads (Element) from MDL (Pay roll Section) and number of staff not exceeds to their actual strength. 4) Ensure that element considered for calculation of DEPC rates are not repeated in Overhead Expenses and Standard Labour Recovery rates. 5) Ensure that DEPC rates charged from Navy is same, as to the other costumer such as BSF, Private Parties etc. 16 Case Study of Material Procured by MDL 1. Ensure that the CVC guidelines are followed during the Procurement of material. 2. Verify whether directive for procurement have been issued by NHQ/ DND/WPS/MDL 3. Verify the old reference of procurement, if any, ensure that tender enquiry should forward to this party. 4. Verify the Procurement advice No. & date and Technical specification with reference to item details, quantity and date of supply. If quantity of item drawn from list of surplus material (From other project) verify the approval of NHQ. 5. Tender Enquiries are floated to various parties. Ensure that these parties are as per contractor’s/vendor’s list maintained by MDL and acknowledgement are received from these parties. If Tender Enquiry floated to only one party, 21 raise the objection. 6. Scrutinise and compare the Technical offer received from various parties with reference to the Procurement advice No. and Technical specification. 7. Ensure that Commercial offer of Technically cleared parties are considered for opening only. 8. Scrutinise the Minutes of Technical Negotiation committee (TNC) and Price Negotiation committee (PNC) with reference to item details, quantity, date of supply, Inspection agency, LD and other terms and condition. 9. Verify the sanction/Approval of competent financial Authority of MDL (From Details of Development of case). 10. Scrutinise the Comparative Statement of Tender (CST) ensure that the order is placed on Lowest Party i.e. L-1, if not raise the objection. 11. Verify the Purchase Order No. & date with reference to Name of the Firm, item details, quantity, date of supply, Inspection agency, LD and other terms and condition. 12. Ensure that the party submits Quality Assurance Plan (QAP), in time. Inspection is carried out with the nominated agency and Inspection Note is attached with the file. 13. Ensure that DGQA/QAE/DQA are the Inspection Agency in respect of Indigenous Supplier. And LRs and others (As nominated by the NHQ) are the Inspection Agency in respect of Imported Items. If inspection is carried out other than the nominated agency (i.e. by MDL/WPS) raise the objection. 14. In respect of Imported Items, ensure that Certificate For Import (CFI) status obtained from DGQA/QAE/DQA, if not, raise the objection. 15. Ensure that advances paid to the party on the basis of Letter of Credit (i.e. L/C or LOC) in respect of foreign supplier and bank guaranty in respect of indigenous supplier. Extension charges of Letter of Credit and bank guaranty are bear by the Party only, if not raise the objection. 16. Ensure that advances paid are adjusted properly while making the payment to the party. 17. If party is charging the Central Sales Tax (CST) and Excise Duty (ED), ensure the clause of payment and prevailing rates from terms & condition of 22 Purchase Order. If not, raise the objection. 18. Ensure that Payment Made in various stages to the Party are as per terms & condition of Purchase Order. If not, raise the objection. 19. Ensure that Payment Bill of the party are supported with Inspection Note, Invoices & other supporting vouchers and Goods Receipt Note (GRN) 20. Ensure that Goods Receipt Note (GRN) is duly signed by the WPS. Scrutinised the Goods Receipt Note (GRN) with reference to quantity shown in Purchase Order and remarks, if any, made on the Goods Receipt Note (GRN). 21. For short supply, ensure that payment have been made after receipt of final quantity of the item. The Liquidated Demurrages should be recovered from the party’s payment for delayed supply, as per the rates from terms & condition of Purchase Order. If not, raise the objection. GENERAL DUTIES OF WARSHIP PRODUCTION SUPERINTENDENT (WPS) The Warship Overseer (designated as Warship Production Superintendent-WPS) is an officer functioning as the local representative of the Navy and is the officer appointed on behalf of Government to supervise and inspect the execution of work and in respect of manufacture of materials and to ensure that the materials/stores used are of the requisite quality and conform to the specifications laid down. His responsibilities include (i) examination of all cases in which subletting of contract is involved and for according permission to such sub-contracting, (ii) investigating the prices when sub-contracts are entered into without calling for tenders, (iii) verification of selection of tenders for sub-contractors, (iv) granting deviations from specifications in respect of materials, (v) advising the Mazagaon Dock Ltd. on economical use of labour and material, (vi) testing the materials used during the process of work and rejecting them where deemed necessary, (vii) certifying the claims for payment submitted by Mazagaon Dock Ltd. for repairs/refit contracts at different stages of payments, (viii) supervising the trials, and reporting defects to Mazagaon Dock Ltd. for rectification, and (ix) issuing acceptance certificate on satisfactory completion of repairs and of trials and on taking over the vessels from the contractor. Cost Audit Cell is required to have close liason with WPS in all matters pertaining 23 to the wok handed over to the shipyards for execution.

COST ACCOUNTING IN NAVAL DOCKYARD

INTRODUCTION Costing is a technique and process of ascertaining cost COST ACCOUNTING Cost Accounting is the process of Accounting of costs which begins with recording of income and expenditure of the basis on which they are calculated and ends with the preparation of statistical data .Cost Accounting is a part of Management information System. MAIN FUNCTIONS OF THE NAVAL DOCKYARD

The main functions of Naval Dockyard are as follows: 5. The repair and refit of IN Ships which may be necessary to keep them seaworthy and the conversion, alteration, or addition to such ships as may be ordered by the competent authority, repair and refit of Coast Guard ships, if entrusted to them on payment. 6. The manufacture and repair of boats, barges, yard crafts, etc. required and authorized for the efficient running of the Indian Navy. 7. The carrying out of the work in items (a) and (b) above for ships of other Navies, when so authorized by rule or special sanction of Govt. and on a payment basis unless otherwise ordered by competent authority. 24 8. To carry out work on payment or book adjustment of other departments of Defence Services, Central Government and State Governments as authorized by competent authority. 9. To carry out work on payment for quasi-government organizations private firms, private individuals and when such work can be undertaken without detriment or hindrance to the progress of work under items (a) to (d) above. (f) To carry out original major works, original minor works or unscheduled repairs, etc. to Dockyard buildings for which the Admiral Superintendent / Officer-in-Charge is responsible or which he is authorized to undertake in accordance with the provisions of the Naval Works procedure. (g) To provide services to ships and submarines berthed alongside in Naval Jetties / Naval Anchorage as well as to establishments / units located within the Yard premises. (h) Berthing and movement of ships in Naval jetties and anchorage (j) Arranging for dry docking as required including in civil docking if Naval dry dock is not available. (k) Repairs of repairable inventory belonging to Material Organisation and Weapon Equipment Depot. 25 (l) Upkeep and maintenance of dockyard plant machinery as well as marine assets. (m) Maintenance and upkeep of yard crafts. (n) Planning and execution of improvements/augmentation of maintenance facilities in the Yard. (p) Manufacture of components and spares when not readily available using advanced facilities available in the Yard. (q) Training of apprentices in the Dockyard Apprentice School as per the statutory regulations by the Central and State Government.

OBJECTIVES OF COST ACCOUNTING

The main objective of Cost Accounting in the Naval Dockyard is to arrive at and exhibit on any date, the true cost of manufacture of/repair to ships/boats, Armament Stores etc., and to compare with the estimated cost. This help the administration in running the Dockyard efficiently and economically with proper control on the progress of expenditure. The other objectives are mentioned below: (a) The government money is spent properly and economically (b) The progress of expenditure is maintained within the limits of the estimates and budget allotment or government sanctions (c) The Admiral Superintendent of the Yard is given such Account details as necessary so that his staff is fully and properly employed against authorised works (d) The materials drawn for such work are properly accounted for and expended (e) The estimates that are required to be prepared are properly and correctly 26 assessed (f) The progressive total of expenditure against budget allotment is always available (g) To provide the Admiral Superintendent of the Yard, necessary data for exercising ‘Cost Control’. The existing accounting regulations of Naval Dockyard are governed by the Naval Dockyard Cost Accounting Instructions [NDCAI] issued by the Ministry of Defence(Finance). The NDCAI basically deals with Dockyard Accounts and in the process, also helps in generating the cost of refits/repairs being undertaken by Naval Dockyard.

MAIN DUTIES OF COSTING SECTION

The Costing section of PCDA(Navy) prepares the Annual Work & Production Account of Naval Dockyard to control the Cost Accounting of its various activities during the year. The various activities of the Costing Section are as follows:

6) Cost Accounting of work done in Naval Dockyard.

7) Scrutiny of work orders, Labour Abstracts, Material Abstracts, Miscellaneous Abstracts and Cost Cards.

8) Determination of the percentage of Overheads (FOH &VOH) annually in consultation with the dockyard authorities.

9) Pricing of material vouchers received from Naval Dockyard authorities.

10) Audit and preparation of Saw mill conversion accounts, Foundry conversion account, Transport statement, Electricity statement & Work Off-loaded statement, rendered by the dockyard authorities.

11) Issue of recovery claims for the value of work done for private bodies, private individuals, dockyard personnel, other govt. departments and foreign governments’ and watch the recovery and adjustment of such claims. 27 12) Maintenance of accounts pertaining to capital assets, viz. buildings, docks, slips, plant and machinery.

13) Preparation of Annual Statement of Works and Production Account of Naval Dockyard (AW &PA).

14) Local audit of ready use store ledgers of Manager material control (MMAC), Manager Machinery spares (MMS) and other centers.

WORK ORDERS

No work can be undertaken in the Dockyard without due authority in the form of an order for work known as “Work Order” (Form No. NSO-301/EDPD-5). The work orders are numbered according to the serial numbers assigned in the syllabus of work orders published annually by the A.S.D. Dockyard. The numbers are grouped according to the nature of expenditure. The work orders (NSO-301/EDPD-5) issued by Planning and Estimating section working under the supervision of the General Manager (Refit),. will show the work order number, date, description of work estimates of cost under different elements of cost i.e. Labour & Material, and authority for the Departments carrying out work and will be forwarded to the MIS, Dockyard & Costing Section, PCDA(N), as soon as they are opened.

AUDIT AND ALLOCATION OF LABOUR CHARGES

After the issue of work orders by the Planning Department of Naval dockyard, work instructions(WI) will be issued showing the details of work to be done by each department. The production centres /departments will carry out the job with authorized/ estimated labour and material required/authorised for as per the work instructions.

The actual man hours spend to carryout the job which are booked in the work instructions are compared with the actual wages paid to workmen who are employed to carryout the job, to have an effective control over the labour expenditure. An exercise of reconciliation between man hours paid actually with the man hours booked in the work 28 instructions by respective production centers are carried out in Costing section monthly.

CLASSIFICATION OF LABOUR ( DIRECT AND INDIRECT)

All the expenditure incurred in the Dockyard has been codified under 5 degits work order for easy identification and accounting purposes. These work orders are put in one place which is known as ‘syllabus of work orders’.

The labour employed in the Dockyard on the specific job pertaining to repair/refits manufacture work of Naval Ships, services to other Govt. Departments, private parties, PSU, other Naval Establishments, Coast Guard Organisation, Additions and Alterations of Naval Ships etc., are treated as Direct Works and hence labour/man hours allocated against respective work orders pertains to above nature of work is known as Direct Labour charges.

Those charges incurred in the Dockyard for working condition and maintenance of the yard but which cannot be charged to a specific job undertaken in the yard is known as Indirect Work. To facilitate the Dockyard authorities to allocate such type of expenditure which the service centers are regularly rendering for maintenance services to production centers, is allocated under indirect work orders provided for in “Syllabus of work orders’. These charges are known as Indirect Labour Charges and are classified as fixed and variable charges.

OVERHEADS

Overhead may be defined as the cost of indirect labour, indirect material and such other expenses including services, which cannot be conveniently charged directly to specific cost units. The indirect expenditure otherwise known as overhead charges is divided into two categories as follows:-

(a) Fixed Overhead on Labour : Fixed overhead charges are those that are 29 obligatory and generally remain constant irrespective of the load involved. These charges do not fluctuate from month to month and are comprised of pay and allowances of service and civilian officers and staff, contingent and miscellaneous expenses, conservancy charges etc. The items which fall under fixed overhead expenditure are compiled in the 01 and 10 series of the syllabus of work orders (b) Variable Overhead on Labour : Variable overhead charges are those that bear a direct relation to production and normally rise or fall in accordance with the work-load in the Dockyard . Eg general shop Labour, maintenance and repair of machinery, electric power, gas, fuel, water etc. The items which fall under this category are detailed in ‘02’ and ‘12’ series of the syllabus of work orders . Fixed and variable overhead charges will be levied on the basis of direct Labour. Fixed charges will be levied at a rate to be determined for the Dockyard as a whole, whereas variable charges will be fixed for each shop or centre separately. The rates will be revised annually. The sub division of overhead in two categories is made to enable the Dockyard authorities to compare and to control the cost of each group with that of the preceding period as also with the estimated expenses / costs for the period under review.

ACCUMULATION OF OVERHEAD COST AND PREPARTION ABSTRACT

Indirect expenditure booked under 01 & 010 series and 02 and 012 series of work orders are adjusted after finalization of march cost card. Actual expenditure booked under fixed and variable charges will also be obtained from the fixed charges Register and monthly sectional compilation. In the difference between the actual expenditure of fixed and variable charges levied at predetermined percentage is more or less by 5 % ,then re-levying of fixed and variable charges @ percentage arrived on the basis of net difference of overhead charges to the direct labour, is carried out on all work order opened during the year and accounted for in the March Supplementary cost card. 30 MATERIAL ACCOUNTING

Any type of work, whether it is a production unit, repairs, maintenance or construction, involves consumption of material of one type or other

The requirement of the various type of patternised material are received mainly from Material Organization, Ghatkopar and weapons are received from Weapon Equipment Depots.

Items which are not available in the Naval Depots, Dockyard authorities resort to local purchase after obtaining the non-availability certificate from the Store Depots.

The receipt and issue of the material are controlled by the Zonal Stores of the Naval Dockyard.

Copies of the material issue vouchers are received in Costing section for evaluation of the same. Since material is drawn for use in the work centers against the issue vouchers, the quantity indicates the material consumed by the Dockyard during the given period. Hence, by evaluating the same by rating and pricing we obtain the value of material consumed by the Dockyard. With computerization of certain centers of Naval Dockyard the details of issues etc., are received through on line and the pricing is done through system.

The material issue vouchers are priced with reference to rates provided by Material Organization, Ghatkopar or the Professional Valuable Officer( POV) rates provided by the Naval Dockyard authorities.

But the costing Section PCDA [N] will be responsible for rating and valuing of all material issued for work in the Dockyard

The receipt Vouchers should also be priced by the Costing Section with reference to the local purchase/central purchase rates provided by Material Organization, 31 Ghatkopar. These should be accounted for in Bin card-cum-PSL maintained in Dockyard authorities. The priced material vouchers received in Costing Section PCDA [N] will be checked with reference to original vouchers in the Bin card-cum-PSL wherever the rates are not available, rates obtained from the Professional Valuable Officer should be adopted for pricing of receipt voucher, issue vouchers, material issue vouchers , return notes etc.,

ANNUAL WORKS AND PRODUCTION ACCOUNTS

The Annual Statement of Works and Production Account of the Dockyard for the year will be prepared by the Costing Section on 30th June of the following year and submitted to Ministry of Defence (Finance) with copy to CGDA, IHQ (Navy), ASD and PCDA Mumbai.

The annual statement of works and production account is the Balance Sheet of Naval Dockyard, Mumbai. On the Debit side, the value of work in progress on 1st April, Expenditure incurred during the year under Direct Labour, Direct Material and various types of Indirect Expenditure and over absorbed Fixed Over Head, Variable Over Head, if any. On the Credit side, the value of work in progress on 31st March, under absorbed Fixed Over Head, Variable Over Head, if any and the Cost of production during the Year.

The annual statement of works and production account must be prepared in such a way so that the entire expenditure incurred on the Yard is explicitly brought out with appropriate comparison and analysis. The account must also facilitate easy life cycle costing of ships and submarines. Accordingly costing of all work carried out on the ships by the Yard during the Financial Year must be indicated. 32 CONTENTS & FORMAT

The AW&PA will have two parts, first being the Executive Summary, indicating salient aspects of production, funds outflow and suitable comparisons and meaningful analysis. The second part will contain detailed list of work order / ship wise, expenditure incurred for the financial year. Other details of operational work orders, work orders closed during the year and expenditures on standing work orders etc will also be listed.

The Account will contain the under-mentioned statements :-

4. Production Account of Naval Dockyard. 5. Working details of Production Account 6. Comparative statement of Production Account 7. Series wise progressive total of Cost Card. 8. Indirect Expenditure (Fixed Charges) 9. Indirect Expenditure (Variable Charges) 10. Details of Expenditure incurred against Indirect Work Orders. 11. Comparative statement of Pay & Allowances of Industrial Employees & Supervisory Staff. 12. Statement showing the firm wise cost of off-loading. 13. Statement showing the ship wise cost of off-loading. 14. Dry-docking delays. 15. Comparison statement of Expenditure incurred for ships of same Nature & Similar class of Ships. 16. Details of Work done for Naval Establishment. 17. Process conversion Account. 18. Details of manufacture of stores/spares for Depots. 19. Testing and repairs of stores/spares for Depots. 20. Work done for central government departments. 21. Work done for civil trade. 22. Work done for CBR crafts. 23. Work done for foreign ships. 24. Work done for Coast Guard Organisation. 25. Expenditure incurred on harbour crafts. 26. Expenditure incurred on Additions & Alterations of I.N.Ships 27. Expenditure incurred on Refit and maintenance of I.N.Ships 28. Expenditure incurred on Other than Refit of I.N.Ships 29. Details of Work orders for which work is in Progress. 30. Summary of Work orders in Progress. 31. Details of Work orders Closed 32. Summary of Work orders Closed 33. Statement showing expenditure against each ship. 34. Capital Account for the year. 33

CARDINAL DATES

In order to enable Costing Section to prepare and submit the Annual Statement of Works and Production Account, the following data in computerised formats / print outs should be submitted to the Costing Section by MIS Department of Naval Dockyard on the dates shown against each.

(a) Monthly Labour / Material / Miscellaneous Abstract by the 20th of the following month. (b) Cost Card for the month by 30th of the next following month. (c) Material and Miscellaneous Abstract for March Supplementary by 10th May of the following Financial year. (d) Cost Card for March supplementary by 15th May of the following financial year. (e) Calculation of Overhead Charges – data from ND(M) required to Costing Section – February end of the preceding year. (f) Calculated Overheads from Costing Section to ND(M) – 10th of March of the preceding year. . ***************

Training Material on PCDA (Navy)Fund Cell

Admissions to Provident Fund and Allotment of Account Numbers.

01) Admission to Provident Funds is discontinued for all those who are appointed on or under 1.1.2004. They are allotted PRAN number under New Pension Scheme. Now admission to GPF is limited only in cases of deputation from other Departments or transfer in from other audit area to PCDA(N) Mumbai.

02) All admissions to Provident Funds are to effected from 1st of the Calendar month following that in which the applicant become entitled.

03) The relevant application-cum-nomination forms are required to be submitted by unit authorities through Pay Audit offices.

04) The application-cum-nomination forms should be checked by the Pay Audit offices and endorse the application portion as checked and sign the nomination portion in token of acceptance. The forms then are sent of AO Fund Section

05) On receipt of the application-cum-nomination in the Fund Section They should be checked to ensure that they are correct and complete in all respect and the applicants are eligible to become members of the Fund.

06) Applicants are then admitted to the Fund, allotted account number after their names are entered in the Index Register maintained for the purpose.

07) The fact of admission of applicants to PF as also the account numbers allotted should be communicated to the concerned administrative authorities, Pay Audit officers.

Application – cum – Nomination Forms

08) The application and nomination form is required to be submitted by subscribers. The name of the Fund is be shown in the space provided for on the forms.

09) The relevant forms are to be submitted at the time of admission to the Funds.

10) Date of Birth of Subscribers is required to be shown in the remarks column of the application portion of the forms to enable the Fund Section to facilitate initiatives of action for completion of accounts in time before retirement. 35

Nominations :-

11) Nomination in the relevant form should be furnished by all subscribers alongwith their applications for admission to Provident Fund.

12) The nomination form is necessary to facilitate disposal of the Fund money that may stand to his credit in the event of his event of his death, before the amount has become payable or having become payable, has not been paid. It is therefore in the subscriber`s own interest that nominations are executed by them of the time of applying for admission to provident Fund.

Subscriptions to Provident Fund –

13) The amount of subscription shall be fixed by the subscriber himself, subject to the following conditions, namely –

i) It shall be expressed in whole rupees. b) It may be any sum so expressed not less than 6 per cent of his emoluments and not more than his total emoluments except DA.

Provided that in the case of a subscriber who has previously been subscribing to Govt. Contributory Provident Fund at the higher rate of 8 1/3 percent, it may sum be any sum so expressed, not less than 8 1/3 per cent, of his emoluments and not more than his total emoluments.

14) The subscriber shall intimate the fixation of the amount of his monthly subscription in each year.

15) The amount of subscription so fixed may be – 10. reduced once at any time during the course of the year. 11. Enhanced twice during the course of the year, or c)reduced and enhanced aforesaid

Provided that when the amount of subscription is so reduced it shall not be less that the minimum prescribed in the Rules.

16) It is the duty of the Pay Audit officer to that officer to ensure that subscriptions are realized promptly every month at the correct rates and from the due dates (in the case of new subscribers required to be admitted to the funds from specified date(s) and that the amounts are correctly compiled to the respective fund heads duly and correctly accounted for in monthly/recovery schedules/charge statements. 36

Processing of Fund Schedules –

17) GPF subs. Recovered from pay bill are booked to fund code head 00/015/01, through punching media by pay audit office. These PMs are forwarded by Pay Audit Offices to EDP. An extract of the amounts compiled to fund head, in respect of civilians of units/ Estts. DV No. wise are printed by EDP called “Schedule Control Register (SCR)” and is forwarded to fund cell for watching the fund schedules.

18) (a) On receipt of fund schedules from various Pay Audit Offices, the monthly schedules after reconciled with schedule control Register and credit and debit schedules are segregated. Around 800 items of credit schedules and 100 items of debit schedules are bunched (batched). These batches are sent to EDP under a top list reflecting the amount booked D.V. wise for data entry.

19) b) Before sending the batches to EDP Centre the details of the batches are entered in “Batch Control Register”. i.e. 1. Batch number 2. Volume No. 3. No. of pages 4. Total No. of items 5. Total Amount Batch nos. are given month wise and are incremental by 80 i.e. the first credit batch for March will be 41 & for April 121. Similarly the first debit batch for April will be 140 and for May 220. The same set of batch Nos. will be repeated for the next year. Different set of batch nos. have been allotted to different sub offices by the EDP section to avoid clashing / mixing of GPF data of one area with another, and also to identify the mistakes / discrepancies. Fund Cell (M.O.), FA to ASD, Wages Sn, Pay Audit Cell Ghatkopar, Vizag , Kochi, NHQ & AO(N) Project Sea Bird New Delhi, have different batch nos. for credit & debit schedules.

20) c) The batches are then handed over to EDP section for processing & a proper receipt obtained.

21) The EDP center will return the batches with corresponding edit lists. The edit list will also give computer generated control totals pagewise and batchwise.

22) The edit list will be checked with reference to the manuscript schedules and corrections will be proposed for rectification of errors. Blank correction formats(correction statement) will be provided by the EDP Centre as and when required for proposing the corrections.

23) EDP center will give a print a out of the corrections.This print out should be checked to ensure that the details of corrections are as proposed in the manuscript correction 37 statement and ensure that there are no omissions.

After checking the print out of the correction statement, EDP Centre will give batchwise & pagewise totals called ‘Volume Totals’. This total is to be checked with the manual batch figures for correctness. Corrections, if any, are to be intimated to EDP Section, through correction statements. This exercise ensures that all the GPF recoveries (subscriptions) / payments have been booked properly with respect to the printed compilation & that there are no omissions.

24) a) After updation of monthly data the data for a period of 3 months will be merged by EDP center and a review will be conducted. The Review results will be printed and handover to the Fund Section. The review and results will be checked to ensure that rejected data where ever possible can be corrected. The review corrections will be handed over to the EDP center.

b) After the review of data of all the quarters , the GPF data of different DDP centers of CDA(N) i.e. Vizag, Kochi, FA to ASD, Wages & Pay Audit Cell Ghatkopar (brought by their representatives on floppies) are merged in the EDP Sn. Of MO and a super review is conducted. The review results are checked to ensure that the GPF record of one DDP center does not clash with other DDP center & duplicate / rejected data wherever possible is corrected. Corrections , if any, are intimated to EDP Sn. through correction statements.

Annual Accounts Statements

25) Work on the consolidated accounts for a year in respect of the various Provident Funds are required to be completed well before the final closing of the accounts for the year and from financial adjustments on account of interest are to be carried out in the accounts of the year concerned.

On completion of the above reviews the fund account is closed. The EDP center will then calculate the interest as per the rules notified by Govt. for the year on GPF accumulations.

The interest amount is then booked to interest code head 00/004/01, through punching media, after the approval of PCDA (N). & forwarded to Accounts Section for noting in their register. The voucher no. for this amount is obtained from Accounts Section.

26) After booking the interest amount, an extract of the CCO-9, called “Broad sheet” will be printed by EDP section & handed over to Fund Cell. The broad sheets are then checked by Fund Cell to see whether the F/W payments made by fund cell and adjustment of GPF discrepancies carried out by fund cell have been reflected in individuals GPF accounts correctly. Corrections if any, are carried in liaison with EDP and revised broadsheets in r/o these individuals are obtained form EDP Section.

27) After printing of broad sheets, CCO9 are printed by EDP Section except for Vizag & Kochi area. The data pertaining to those areas are handed over to their representatives on 38 floppies by EDP Section to enable them to issue CCO9 at their end.

28) Annual statements of Accounts for each financial year in respect of various Provident Funds are required to be sent to the subscribers concerned as per the time schedule by the EDP center. In case of CDA (N) it is not later than the 30th June following and a report in this regard is to be sent to the CGDA by the first week of July every year. b) If any delay in the completion of the work by due date is anticipated in any year the fact should be brought to the notice of this C.G.D.A. in advance, stating reasons for the delay and also the probable date by which the accounts statements will be sent to the subscribers.

Complaints received from subscribers on Annual Statements of accounts.

29) Subscribers are required to satisfy themselves as to the correctness of the amounts shown in the yearly statements of their accounts and report errors, if any, to the Fund Section within three months of their receipt. All such complaints should by carefully looked into and if it is found that there is no discrepancy in the accounts the correct position should be explained to the subscribers concerned through the head of the office. Where discrepancy is found to exist, the same should be set right and revised statements of account issued or revised position of accounts intimated.

Final Payment of accumulations in the Provident Fund.

30) When a subscriber quits service or otherwise becomes non-effective by superannuation, death, discharge etc. or proceeds on leave pending retirement, the amount standing to his credit in his Fund shall become payable as stipulated in the various Provident Fund Rules.

31) The application in the prescribed form (viz. Form A, B or C) for the settlement of the subscribers account is made by the subscriber himself or his nominee/claimant if the subscriber is not alive, to the Fund Section through the administrative officer of the subscriber and Pay Audit officer concerned.

32) (a) The Pay Audit officer should check the application forms to ensure to ensure that :-

1. The application has been made in the proper form. 2. It has been duly and properly completed.T 3. The part I order in support of the casualty has been cited by the Admin. Authorities. 4. Particulars of recoveries/withdrawals, effected up to the months of months of 39 retirement/death etc. after the period covered by the last statement of accounts issued, have been correctly completed. 5. Demands/dues which are to be recovered are properly shown.

b) DV/TE nos. in r/o recoveries/payments during the last 6 or 12 months should be completed by Pay Audit officers and the fact of having checked the application endorsed on the application itself or mentioned in the forwarding memo.

The Pay Audit Officers while forwarding the application or claim for payment of the fund accumulations shall furnish the following information –

1. Temp. withdrawals if any, outstanding in their Demand Register.

2. The last payment made on a/c of insurance premium and information as to whether it was monthly or yearly.

3. Amounts, if any, finally withdrawn for meeting expenses on a/c of cost of higher education.

4. Amounts if any, finally withdrawn for house building purposes.

5. Amounts, if any finally withdrawn for marriage purposes.

6. The month and year of payment of the amounts against (ii) to (v) also should be specified.

7. The Pay Audit Officer should also ensure that no advance/withdrawals on whatever account is paid to the subscriber after the proforma containing the above particulars has been passed on to Fund Section for final settlement of Fund Accounts.

33) With a view to avoiding delay in the Final settlement of Provident Fund A/c’s. of sub-proceeding on retirement/superannuation or on leave pending thereof, applications for final settlement of Provident Fund Accounts shall be forwarded by the head of the office in the normal manner, one clear month before the due date of retirement to enable the Fund Section to carry out all the spade work, so that the individuals concerned may be paid the maximum amount admissible on the date of retirement.

34) Applications for final settlement in r/o the various Provident Fund on receipt in the Fund Section concerned are dealt with the cases finalized. 40 A Flow Chart showing various stages involved in maintenance of GPF Account

Admission / Allotment of GPF Account Numbers to the subscriber and filing of nomination.

Receipt of GPF Credit / Debit Schedules from Pay Audit Offices .

Watching of Credit / Debit schedules w.r.t. Schedule Control Register.

Forwarding of Credit / Debit schedules to EDP in Batches .

Validation of Edit List received from EDP and intimation of corrections through “Correction Statement”.

Settlement of discrepancies pointed out by subscribers and intimation to EDP.

Annual closing of GPF Account and issue of CCO-9

Final settlement of GPF Account in cases of retirement / release / death etc. 41

Transfer of Fund Accounts

35) Transfer of Provident Fund Accounts is involved when (A) a subscriber form the Defence side is permanently transferred to Civil and other Departments/Services (including state Govt.), Corporations, Public Sector U/Taking etc. (B) when transferred form one Audit area to another within the Defence where the Fund Accounts are maintained by another accounts officer and (C) when transferred from one Fund to another whether Accounts Officer is changed or not.

36) Transfer to Civil and other Departments/Services – when a subscriber is transferred Permanently to Civil and other Departments/Services, after the receipt of Transfer Proforma action is taken to close the accounts of the subscriber and to arrive at the final credit balance. The credit balance is transferred to the Accounts officer concerned through crossed cheques.

37) A separate communication intimating full particulars of the amount transferred and indicating also credit/debits missing is also sent to the AO concerned and his acknowledgement obtained for the same.

Transfers form one audit area to another within the Defence Services –

38) In cases of permanent transfer form one audit area to another where the Fund accounts are maintained by another Accounts Officer after receipt of Transfer Proforma from Pay Audit Officers concerned indicating

a. date of Transfer and office to which transferred.

b. If transfer is to another category (i.e. Ind. to Non-Ind. or vice versa etc.) particulars and details of service in the past before transfer.

c. The last months pay bill from which the last recoveries on a/c fund subscription refund of withdrawal etc. have been made stating the DV/TE Nos. through which the amounts were compiled.

d. Amount of recover under the various components included in the schedules for previous five months.

e. Advance outstanding.

f. The fund to which the individual has been admitted in the new formation. 42

39) On receipt of the requisite particulars the account is closed to arrive at fund credit balance. The Assets are then transferred through Defence Exchange Account to the concerned Accounts Officer.

Subscribers on deputation for Civil and other Departments -

40) Provident Fund account of subscribers on deputation or on temp. duty to Civil Depts. etc. will continue to be maintained by the Accounts Officer concerned by whom they were being maintained before the subscribers proceeded on such deputation The Accounts Officers will also function as Pay Audit Officers for purposes of watching receipts and adjustment of subscriptions.

******************* 43

Imprest section

The objectives of Imprest section are to:

(10) Provide Cash to Ships and Establishments. PARA 291 ii) Pay the bills in respect of Contingent and CHAPT VII miscellaneous expenditure of ships and establishments and specified personal claims of service personnel and iii) Recover the cost of training imparted to Foreign Naval personnel.

DUTIES – Para 292 of OM VII The following duties assigned to Imprest section in order to achieve the objectives mentioned above. 22. Issue of money warrant to ships for cash requirements. 23. Watching receipts of Cash Accounts. 24. Compilation of receipts and charges and 25. Scheduling of vouchers to the concerned audit sections and post audit of cash accounts. 26. Audit and payment of bills in respect of contingent & miscellaneous expenditure. 27. Audit and payment of specified personal claims in respect of Naval Personnel such as:- a. House Building Advance b. Motor Conveyance-Car, scooter/Motor cycle/Computer c. Outfit Allowance, Renewal d. Reimbursement of Medical Expenses 44 e. Medical Board Fee-refund, 28. Audit of payments made on a/c of Annual Training Grant 29. Audit of payment of bills on a/c of Local purchase of stationery and local printing, 30. Recovery of cost of Training of Foreign Naval Personnel attached of Indian Naval Training Estts. In the Indian Navy, there are Shore Establishments and Afloat Ships. Ships and estts., are prefixed with INS and Hospitals and INHS except base authorities such as Command Hqrs., Base Logistics Offices, Base repair Orgn., Base Victualling office, Naval Pay Office, Bureau of sailors etc.,

There are four arrangements for drawal of cash by the Naval authorities to meet their expenditure. 11) Imprest Account 12) Public Fund Account 13) Cash Assignment, and 14) Money Warrant.

A. Sanction of Govt. would be necessary to open an Imprest Account. Certain fixed Amount is held with Account holder and the expenditure incurred and is recouped.

B) Public Fund A/c. –Can be opened in SBI or Scheduled Bank with the concurrence of CDA (N). Bills are submitted for pre-audit and authorization of payment by issue of cheques. Amounts are drawn from the Bank to that extent and expenditure is met with.

C) Cash Assignment is letter of credit issued in favour of the c.o. of the Naval Estt. On the RBI/SBI/Govt. Treasury authorising a particular Bank or Treasury to make payment demanded by the Cash Assignment holder upto the limit specified therein. Cash Assignment is arranged by the ‘D’ Sn. Of CDA(N)/AAO CDA(N) (V)/ AAO CDA(N) (C) in consultation with the assignee on the basis of previous actuals and anticipated requirement. The amount is sanctioned by Hqrs of its command and a concurrence letter is issued by Imp. Sn to D sn. Cash assignment is issued for a financial year from 1 st April to 31st March. Blank cheques are supplied by the ‘D’ Sn. of the CDA(N) to the Cash Assignment holder on demand.

Additional cash requirement is also authorised based on the approval by Command Hqrs. Para 294 of OM Pt. VII 45

D) Money Warrant is an Authority in Form-67 issued in favour of the C.O. of a Naval Ship (self Accounting) authorising all the Treasury officers in India to make payment demanded by the Money Holder upto the limit specified therein per month. Money warrant is issued by the Imprest Sn. CDA(N)/AAO CDA (N) (V)/AAO CDA(N)for a financial year from 1st April to 31st March. Non self accounting ships depend on the Base Logistics Office for their Cash requirement.

Additional Cash requirement is also authorised based on the approval by the Command Hqrs. Generally the C.O. of a ship draws the required Cash from the base authorities such as Base Logistics officer and Naval Officer-in-charge.

As an exception the C.O.s of Air Craft carriers viz. INS VIRAT will have cash assignments also, operated upon the RBI Bombay only. Money warrant upon the Base Authorities at ports other than Bombay and Govt., treasuries at the remaining places. They shall, however, ensure that total drawals made on both cash assignment and Money arrant shall not exceed the monthly monetary limit. The paying authority will note on the money warrant the amount paid each time. All money warrants expire by 31st March of each year when they will be returned to CDA(N) for verification with the Cash Accounts and record.

The first three arrangements viz. Imprest A/c. Public Fund A/c. and Cash assignment are commonly operated in all the three Defence Services Army, Navy and Air Force where as Money warrant is peculiar to Navy only. Imprest of Naval Units NCC : Naval Units NCC in places where there is no Naval Estt., will be granted an Imprest of Rs. 1000/- each for making urgent payment of TA/DA and to meet other unforeseen contingencies. Normal Pay & Allowances will not be made through the NCC Cash Accounts.

CASH ACCOUNTS : Cash Account is a true extract of the Cash Book maintained by the Officer in whose favour the cash assignment/money warrant is placed.

Cash Accounts are submitted to the Imprest Sections of the CDA(N), AAO CDA (N) (V) & AAO CDA(N) ( C) respectively.

Naval Estts. having cash assignment shall render cash accounts in two parts.

PART – I Including all receipts and payments accounted for between 1st and 20th of the month to reach by 25th of the month. 46 PART – II 21st to close of the month so as to reach by the 7th of the following month. Ships/ Estts. not having cash assignment will render the cash account for each month complete in one part so as to reach respective office by the 7th of the following month. Non-receipt of cash account in a month if any, without adequate reasons should be reported through the MFAI report rendered Quarterly.

NOTE : Any undrawn balance at the end of the month will be carried forward to the next month by the cash Assignment holder. Undrawn balances of the cash assignment remaining at the end of financial year will lapse. Money Warrant holder can draw cash only to the extent specified during a month. Any undrawn balance cannot be carried forward to the next month.

CHEQUE STATEMENT Cash Assignment holder will render to the audit of concerned cheque statements of drawings made four times a month.

i) 1st to 7th of the month (11) 8th to 14th of the month (12) 15th to 21st of the month, and (13) 22nd to the last day of the month.

Bank cheques supplied by the ‘D’ Sn. to the Cash assignment holder on demand bear Sl. No. in an ascending order. Intimation is also sent by ‘D’ Sn. to Imprest Sn. regarding the Cheques issued, while forwarding the blank cheques.

In the receipt side of the Cash A/c. the cheques drawn during the month are mentioned with cheque No., date and amount chronologically. It shall be verified that cheques are serially drawn and shown as and when drawn. Cancelled cheques, if any, will be received along with the cheque statement/Cash account and retransmitted to A/c. Section after verification of the same from cash A/c. and cheque Statement.

Missing cheques not received, if any, will be called for by inclusion in the objection statement.

CASH ACCOUNTS 1) Ensure that the cash A/cs. Are received promptly. 47 2) Call for cash A/cs., if any, not received by issue of signal. 3) Enter in the workbook and in the register of Cash A/c. showing the date of receipt. 4)Verify that the opening balance is correctly taken as per the closing balance of previous month. This will be checked with the register of opening and closing balances maintained in each group entered therein as and when compiled for a month. In case of doubt verify the closing balance of the previous month in the printed compilation received from the EDP Sn. 5) Ensure that there is no correction in the balance and in other figures. 6) Corrections if any are attested. Check to ensure that corrections are due to culpable mistake and not deliberate. If not convinced the same will be objected to by inclusion in the objection statement. 7)Verify the signature of the cash A/c. holder/C.O. of the ship on record in the specimen signature register. 8) Ensure that all the transactions are brought to A/c. and that public funds are utilized strictly in accordance with the rules and the cash receipts are not appropriated to meet expenditure unless specifically authorised. If an expenditure is incurred without any specific authority the same shall be objected to by inclusion in the objection statement. 9) Ensure that a certificate stating that the Account is truly and faithfully shown and that the balance of Public Money in hand at the end of the month has been verified and agreed with the book balance as per cash book is furnished. 10) Certificate is signed by the Logistics Officer and countersigned by the C.O. 11) Surprise check of Cash carried out by the C.O. at least once in a quarter. There should be an endorsement to this effect in the cash account. The amount shown in the surprise check handing/taking over agrees with the cash balance as per cash book. 12) There is no voucher for every receipt and payment. 13) Totals of receipts and payments are correct. 14) Heavy cash balance is not retained. Imprest holders/Disbursing officer will in no circumstances keep large cash balances in excess of their actual and immediate requirements. Amount of cash held at any time should be kept to the minimum consistent with service requirements. The fact whether Ship/Estt. retained heavy cash balance particularly at the close of the month can be verified from the following month’s cash account which will be on hand while conducting audit of the cash account of a particular month. Shore Estts. with Banking facility shall hold cash to meet one week’s estimated expenditure.

NOTE : One week’s/one month’s requirement are to be estimated on the basis of past and current expenditure with allowance for any anticipated variation. Month’s requirement should be regarded, as maximum and the balance should, however, always be restricted to the minimum which the interest of service demands. 48

15) All the receipts and payment authorities enclosed to vouchers of the cash account after audit will be cancelled and enfaced with the stamp audited and cancelled over the signature of the auditor. 16) After exercising preliminary checks of the cash account codify all the transactions. After tallying the receipts & payments prepare a punching medium ship/Estt. cash account wise. Class of voucher operated to cash accounts is ‘4’. 17) Vouchers and payment authorities pertaining to different sections will be scheduled to the concerned section for post Audit at their end. (Para 302 OM Pt.VII) TA/DA/LTC Advances to TA Section, Fund Advances to EDP, Pay, Wages & IRLA section as the case may be. Pay & Allowances of non-industrial civilians – Pay Sn., Acquittance Rolls, Ration Money,Tution Fee etc. – IRLA Sn., Pay & Allowances of Industrial Personnel – Wages Sn. 18) While issuing cheques for any payment audit sections will be preparing the punching medium and compilation is done by them. Schedules where necessary are also sent by them to the concerned section. For eg. GP Fund advance to the EDP Section. 19) When audit sections issue payment authorities to cash Assignment and money warrant holder for drawing and disbursing through their cash assignment/ money warrant the code head to which the expenditure is debitable is invariably mentioned therein at the column provided for it. Accordingly while compiling the cash A/c. transactions the code head shown therein will be taken for guidance. If there is any mistake in the Code head, the correct code head will be operated with a view to avoid misclassification of the expenditure and or fictitious code head. 20) Net entitlements of Naval officers and sailors paid on acquittance rolls through the cash A/cs. are compiled to a suspense head 00/018/61. Schedule for the amounts compiled to code head 00/018/61 will be forwarded to IRLA Sn. along with copies of duplicate copy of the top schedules of Acq.Roll received from NPO duly quoting the D.R.No. The duplicate copy of Top schedule of Acq. Roll received from NPO will be paired and linked with the triplicate copy of the schedule received along with the cash A/c. It will be ensured while linking and pairing that the same are facsimile copies and the amount is the same after pairing and linking initialed by auditor.

21) Abstract of receipts and charges in r/o the officers and sailors of the Navy is prepared by the NPO and submitted to IRLA Sn. With the reference to the Abstract of Receipts and Charges submitted by NPO and the Schedules furnished by the Imprest section. IRLA Sn. will be reconciling the amounts to suspense head 00/018/61 by the E.D.P. Sn. and relieve the same.

22) Bulk amounts drawn by the cash Assignment holder from the RBI/SBI/GOVT. Treasury shown in their cash Accounts are compiled to code head 00/020/81. Schedules for the amounts compiled together with a copy of cheque statement duly verified will be 49 forwarded to ‘D’ sn.and A/c. cancelled cheques will be sent to A/cs. Sn.

23) Bulk amounts paid to the ships against money warrant by the BLO/Estt. Will be compiled to (+)ch 0/018/60 while compiling the cash A/cs. of BLO/Estt. The same amount drawn by the ships shown in their cash A/cs. will be compiled to (+) R 0/018/60.

24) The BLO cash A/c dealing auditor will maintain a Guard File. In this Guard file bulk amounts paid to various Ships during a month will be shown in a chronological order. The ship’s cash A/c dealing auditor will have to link the receipt item no. and date of the receipting ship against the payment items. They will also initial in token of linking.

25) In addition to the linking in Guard File, the task holders of all the cash A/cs will prepare and submit schedules for all the amounts compiled to 00/018/60 whether +R, –R, +C, –C and also for any of the amounts readjusted subsequently through the transfer entries to the task holder centrally dealing with the reconciliation work of the suspense head 00/018/60 in Imp Sn.

26) The task holder of reconciliation work will ensure that the schedules have been received as per the printed compilation for that month. The bulk amounts paid by the BLO/Estt. will be noted in one side and the receipts by the ships on the opposite side of the register maintained for the purpose and then the linking process completed. Erroneous compilations will be readjusted by putting up transfer entries.

Payments made to Army and Air Force personnel attached to Naval Estts.

The pay and fund A/cs of the Army personnel are maintained by the PAO (ORS) – corps/Regiment concerned upto 31.3.90 the advances paid as Acquittance Rolls through the Cash accounts of the establishments were being passed on to the CDA(ORS) concerned through the Accounts section for onward passing of the debits to the CDA (ORS)/PAO(ORS) through the Defence Exchange account.

Form 1.4.90 onwards i.e from the year 1990-91 the debits on the above a/c are being transferred to the CDA (ORS) concerned by the EDP Centre Meerut centrally. Advances paid on account of acq. rolls and AFPP Fund are compiled to 00/018/65 of the CDA(ORS)concerned. Schedules for the amount compiled will be prepared and handed over to the task holder centrally entrusted with rendition of one line summary duly reconciled with the printed compilation. CDA MEERUT 03/018/65 CDA GAUHATI 21/018/65 CDA B’LORE 05/018/65 CDA LUCKNOW 22/018/65 50 CDA C’GARH 06/018/65 CDA S’BAD 25/018/65 CDA JAMMU 12/018/65 CDA JABALPUR 26/018/65 CDA PATNA 98/018/65 CDA SC 04/018/65 C.GUARD 06/018/65

Refunds of advances paid on Acquittance Rolls and AFPP Fund if any made by Army Personnel credited through the cash Accounts will be passed on through the Defence Exchange Account only.

Advances paid to Army officers and Air Force personnel attached to Naval Estts. through their cash accounts will, however, be passed on through the Defence Exchange Account to the CDA (Officers) Pune, and the CDA (AF) Dehradun respectively.

Payments made and payments incurred and charged off through the cash account of the claims which are subject to post audit by Imprest section will be audited as per the audit checks prescribed in the OM Pt.VII and entered in the relevant N.R.C.

After post audit of the cash account audit observation/objection or a letter stating that cash account audited and passed will be issued to the ship/Estt as the case may be by entering in the Audit Progress Register. The No. of observations/objections raised in the A.P.R. The audit objections/observations will be pursued to finality.

HOW TO PREPARE PUNCHING MEDIUM

1)All the figures in the P.M. must be in Arabic and not in Roman.

12. Proper narration regarding the adjustment is essential. 3) In case of issue of fresh cheque in lieu of lost cheque. Or cancelled cheque full particulars are to be furnished 3) Previous cheque no. 4) Date of cheque 5) Amount 6) Voucher No. and month under which issued initially.

There are eight class of vouchers. 51 a) Cheques and Bills. b) Transfer entry c) Inter Departmental Schedules (Civil) d) Abstract of Receipts and Charges e) Cash Accounts f) Railway bills g) Def. Ex. Accounts h) MES Bills paid by Main Office.

CHARGED EXPENDITURE ; Charged Expenditure is not voted expenditure. These arise in accidents cases etc. where the amount has to be paid as compensation to Third Parties with reference to Court Orders/Decrees. On getting Govt. Sanction the Estt. will float a C.B. claiming the amount for issue of a cheque for payment to a specific court. On receipt of C.B. ensure that Govt. sanction exists. Ink signed copy of sanction issued by Govt. exists and linked. In case if ink signed copy is not received orders of GO will be obtained for making provisional payment pending receipt of ink signed copy. Enter in the P.P. Register and the ink signed copy will be called for and receipt thereof watched. Audit the Bill and issue cheque as required but despatch to the Estt. after entering the Register of charged Expenditure. A report of the charged Expenditure paid will be rendered to A/cs. fortnightly.

Note 1: Under no circumstances provisional payment is approved pending receipt of Govt. sanction. In other words, Govt. sanction is a prerequisite for payment of charged Expr. Charged expenditure sanctioned by Govt. during a particular financial year will not be paid during subsequent financial year. Example: A/O payments involved will be compiled to the Charged Expenditure. Current expenditure will be compiled to voted expenditure viz. the relevant head of A/c. Note 2: Charged expenditure should not be authorised through payment authorities.

Issue of cheques – Monthly P & A. remittance to Bankers in respect of Naval Officers. Pay Account of the Naval Officers and Sailors are maintained on IRLA systems by the Naval Pay Offices, Bombay under the Centralised Pay Accounting Systems. Sailors are paid their net entitlement on Acquittance 52 Rolls through the Cash A/c or the Ship/Estt. I.P.A.S. are audited by the IRLA Section. The officers have an option to draw their net entitlement either on Acquittance Rolls in cash through the cash A/c. or get the remittance to Bankers. N P O remits to Bankers in respect of officers posted at Bombay through its Cash Assignment – Allotment and Remittance. At places like Delhi, Calcutta, Madras, Cochin, Visakhapatnam, Chilka, Goa, Jamnagar etc., the naval authority or the BLO remits to officers Bankers through their Cash Assignments with reference to the payment authorities issued by N.P.O.

Payments to Indian ships in Foreign Currency :

Payments in foreign Currency to Indian Naval Ships visiting foreign ports are authorised by Imprest section of Main Office and sub offices by issue of payment authorities against specific Govt. sanctions.

Ships collect the sanctioned and authorised amounts from the Indian Embassy/Mission on their visits to foreign ports and refund the unexpended amounts, if any to the Embassy/Mission before leaving the port.

Cash A/cs port wise showing the receipts and payments are rendered to the PCDA (N)/AAO (V)/AAO (C) as the case may be by the Ships concerned.

On receipt of the A/c. of the embassy/Mission through the Ministry of External Affairs A/cs. Section of PCDA, New Delhi compiles the amounts shown as paid to the Indian Naval Ships on their visit to RBI Suspense Code Head 00/020/82 as (-) charge and service heads of Navy as shown in the Govt. letter as (+)Charge.

On receipt of RBI Advice the RBI suspense head 00/020/82 is cleared as + Charge and amount booked to Defence Proforma Accounts as + Receipt to code head 00/021/00.

Recovery of training Charges in respect of Foreign Trainees Imported training in the Naval Estts. in India.

Indian Navy, Army and Air force undertake to train students from friendly countries in their Training Estts. under the Indian Technical and Economic 53 Cooperation (ITEC) of the Ministry of External Affairs (MEA). There are three categories: j) I.T.E.C. Category I : The MEA pay for training and Air travel Charges in full . k) I.T.E.C. Category II : Cost of training is borne by the MEA and the cost of Air travel is borne by the Country concerned. l) Training of foreign students on self financing basis. All expenditure is borne by the country concerned.

In addition to the above categories Nepal & Bhutan come under a special category where in charges are debitable to relevant head of the Defence Service Estimates.

Recovery of Training Charges : A copy of allotment of vacancies will be received along with sanction letter by the MEA or Min. Of Defence as the case may be. Our missions abroad will obtain advance payment from Foreign Country and forward DD for the amounts of training charges in favour of CDA(N) for full payment. These amounts will be posted in a register maintained for the purpose.

Imprest section monitors payments recovered by keeping updatd records and render, six monthly report as on 30th June, and 31st Dec. by 15th Jan. and 15th July to NHQ., Min. of Defence, MEA and CGDA.

Recovery statements in respect of the countries coming under the categories of I & II of ITEC will be rendered quarterly.

Payment of initial outfit allowance : Initial outfit allowance claims in respect of S.S.C. Officers on grant of commission and cadets on passing out of NDA are entitled to Initial Outfit Allowance as under. Ex-NDA cadets will receive Rs.7000/- in the following phases w.e.f. 1.8.97. M.O.D. No .1(22)/97/Pay/services: 8.1.98 One time outfit allowance in r/o the sailors (Rs.500) will be passed by the Imp. sn. centrally for the entire navy. a) On joining the cadet training ship Rs.4000/= b) On commission Rs.3000/=

Honarary Commissioned officers are contributed for Rs.4000/- only. On grant of permanent commission Naval Officer is entitled to initial outfit allowance of Rs.7000/- subject to post audit. Renewal of outfit allowance payable at Rs. 7000/- on completion of seven years of active service claim is to be submitted to NPO subject to post audit by IRLA Sn. ( After 1.1.90 ) .Claims due prior to 1.1.96 will continue to be dealt with by Imp. Sn. NHQ No.DC/310 dt 54 31.10.95

DIP MONEY : Dip money claims are paid through cash accounts subject to post audit. (Para 339 O.M. Pt.VII) During post audit it will be seen that :- e) The claim is submitted on Form IN – 496. f) Diving operation has been carried out in an approved diving apparatus for practice under the orders of the C.O. Individual is a qualified diver. g) Work has been satisfactorily been carried out. h) Amount in question has not been claimed and paid so far. i) Claim is supported by the acquittances from the officers/sailors. j) Rate claimed is correct with reference to the depths in fathoms reached by diver. k) Enter in the NRC. l) Particulars of DIP MONEY paid are sent to NPO to assess for Income Tax. ix) The max. amount admissible during a calendar month should not exceed the maximum amount prescribed by DTE of diving. NHQ letter 14214 dtd. 25.09.2000. Clearance divers are entitled to double the rate that is payable to a Ship Diver. Attendant is entitled to 1/5th of the amount payable to Diver. NOTE :- Operations carried out for any projects on behalf of Central Ministries, State Government and autonomous bodies shall bear the expenditure. Particulars will be furnished to Store Section when called on for raising the debit against the authority.

REVISED DIP MONEY RATES : Clearance Deep Diving Officers Rs.400/-pm Ship Diving officer Rs.200/-pm

Depth (in Fathoms) Rates per minute (in Rs.) upto – 20 0.60 22 – 30 0.90 30 – 40 1.20 55 40 – 50 1.80 50 – 60 2 .40 60 –75 3.40 75 – 100 3.80

Pre /post Audit claims – Imprest Section. 1. House Building Advance :- 50 times of BP or 7.5 lakhs Recovery principal in 180 installments. Recovery of interest in 60 installments.

Claim is pre-receipted, stamped countersigned and duly preferred on a contingent bill.

Requisite certificate/documents as given in para 313 of OM Pt.VII are enclosed. Formal sanction of N.H.Q. along with a copy of sanction issued by Ministry of Works, Housing and Rehabilitation is furnished.

Amount of advance is correctly worked out.

In respect of subsequent installments stage certificate duly countersigned by competent authority is enclosed.

A certificate to the effect that the price of the flat is not less than the amount of advance is furnished by an officer in the case of purchase of ready built flats.

All payments are recorded in the Register of HBA and intimation of advance paid is sent to NPO/IRLA for watching recovery.

Acknowledgments are watched through register.

Legal documents are sent to Accounts Section. Note to this effect is made in the Register.

In the case of purchase of houses from Govt. undertaking/statutory Bodies, the entire amount is paid 56 in one lumpsum. Sanction of CMS/NHQs, an agreement to repay the installments in the specified number and to complete the purchase deed and mortgage deed within three months, a certificate to the effect that market value of the flat is not less than the amount sanctioned, and an insurance coverage for the like amount, Personal Bond, Security Bonds are looked for before realizing the advance.

2) Advance of purchase of conveyance :- Motor Car – BP Rs.10, 500/- or more, 1,50,000/- or 16 months Pay or price of the Car whichever is less. Recoverable in 200 monthly installments.

Motor Cycle/Scooter – BP Rs. 4600/- or more 30,000/- or 10 months Pay or price of the Motor Cycle/ Scooter whichever is less. Recoverable in 70 monthly installments.

The procedure regarding the payments and audit of advance in office of the Naval Personnel will generally be the same as laid down in para 366 to 387 O.M., Pt.II Vol.-I.

Second or subsequent advance in r/o Motor Car is restricted to the difference and sale proceeds of the Old Car subject to the amount not exceeding Rs.75000/- or 16 months pay whichever is less.

In r/o Motor Cycle and Scooter the difference between price of the vehicle to be purchased and the sale proceeds left over with the officer after repayment of earlier outstanding advance including interest or eight months pay or Rs.10,000/- whichever is less. Ensure that the sanction of command HQrs/ NHQ exists and the payment is authorised either by issue of payment authority or cheque as required by noting the M.C.A. Register. Hospital Bills :- When the entitled personnel of the Defence services are treated in Civil/private Hospitals or examined for pathological specimen or electro cardiogram etc., in civil hospital or Govt. Civil laboratories, the bill for the charges will be claimed by the service area such hospital is located. Such bills are pre-audited and cheques issued generally to the civil or private hospitals as the case may be. Para 318 to 328 OM Pt.VII . 57 Bicycle Maintenance Allowance –DSC Units & IN Estt. First year – Rs.75, 2nd to 3rd years –150/- 4th to 6th and above 225/- Auth: Mod letter no. A/20134/A &C3/05-P1/85 DO-II/2003 dt. 3/2/2004. The claim will be checked to see that 15) It is prepared on contingent bill (IAFA-115). 16) The following information is furnished on the bill. 1. the No.& date of sanction authorizing the bicycle for the unit. 2. the number , make & pattern of the bicycle and No. & date of the receipt vr. in r/o new cycle. 3. The year, viz. 1st, 2nd , 3rd, etc.. for which the allowance is claimed. 17) The following certificates duly signed by the C.O. Unit. 1. that no material etc. have been drawn free of cost from AOG sources. 2. The bicycle for which the allowance is claimed is actually maintained 18) The claim is prepared annually in advance in April each year. 19) The unspent balance at the end of the year will lapse to the state and hence is to be refunded before the close of the year. 20) It is certified that the allowance is not claimed in r/o non-static unit. 21) The allowance in r/o a bicycle received after 1st April is admitted for the remaining part of the year at appropriate rate. Band Maintenance Allowance :- Allowance is claimed monthly in advance on a Contingent bill (IAFA-115). Para 331 OM Pt.VII 23/87 Availability of funds are ascertained prior to the passing of bills from A/c. section. A certificate that the band is actually maintained is endorsed on the bill under the signature of the commanding officer. Suitable endorsement is made in NRC Register after ensuring that the allowance has not been admitted already for the same period. Payment authority for the amount passed is issued to the concerned Ship/Estt. as per the allocation.

Total amount allocated Rs3600/- per month. The same is distributed to various ships/Estt. Viz. WNC Rs.700/-, ENC Rs.350/-,SNC Rs.350/-, INS India Rs.250/- etc.

Honoraria for selected Dockyard Officers and Machine drawing Draughtsman 58 for delivering lectures on Professional Subjects :- Para 337 OM Pt.VII. Payments are authorized through credit in the IPAs of the Service Officers and in the case of civilians by issue of cheques. Claims are supported by a certificate from ASD Naval Dockyard to the effect that officers for whom honoraria is claimed are actually borne on the strength of and employed in Naval Dockyard and they delivered the lectures on the dates mentioned. The rates are correct and the officer claiming the amount of honorarium certify that it has not been claimed and paid to them previously. Necessary entry is made in the Contingent Register.

Telephone & Trunk Call Bills :- Telephone rental bills are paid annually in arrears and trunk call bills monthly in arrears. Para 336 O.M. Pt.VII. The claims will be supported by – 1) original telephone rental bills duly approved and certified by CO and countersigned D- signal SO I/C, staff officers Command, CSOs, Corps. 2) A certificate to the effect that the telephone circuits for which rent is paid are within the authorized scale and that they have been in official use. 3) Calls were made on bonafide Govt. purpose only.

5. In the case of trunk calls the certificate will also indicate that the bills have been checked with reference that the entries in the register maintained for this purpose. 6. In case of repair charges the certificate will indicate that the charges are due to fair wear and tear 7. In the case of private calls the item No. & Date of cash account wherein the amount have been credited to Govt. will be noted. 8. Any loss of rebate due to late credit of bill will be treated as a loss of public money. 9. The bill are entered in the Register of telephone charges, opened for unitwise.

Welfare and Amenity Grant :- The grant is drawn in advance half yearly on 1st April, and 1st October of each year based on the permanent strength of the Ships/Estt. Para 356 OM Pt.VII. 59 Rates w.e.f 1.4.1989 OM of No.15 ( Strength upto 100 Rs. 75/- per capita (93)/D/(RIS) Per( -”- 101 to 200 Rs. 60/- -“-subject to year ( minimum of Rs. 7500/- 29.09.1989 ( -“- 201 to 800 Rs. 45/--“- subject to ( minimum of Rs. 10500/-. ( -“- 801 to above Rs. 30/- -“- subject to ( minimum of Rs. 30000/-. GOI.MOD.letter no.15(93) HB/DCR dtd.22/6/2002 as amended vide GOI, MoD letter no. 15/93/83(D) (Res)/1 & C/2005 dt 23/8/2005. In the case of training Estt. average strength of Sailors under training grant during preceding six months will be taken into account.

Payment authority will be issued to the Ships/Estt. for payment through Cash account.

The claims are entered in the Register of W & A opened Ship/Estt. Wise.

Entertainment Grant :- An annual grant of 50,000/- is places at the disposal of CNS for entertainment purpose. ¼ of the amount is drawn in advance at the beginning of each quarter of financial year. The grant if non-cumulative and unspent balance lapses to Govt. at the end of financial year.

Permanent Advances: - Contingent bill preferred will indicate the No. & date of the Govt. sanction authorizing the Imprest. The advance is sanctioned to meet the expenditure on local purchase of petty stores contingent of postal charges and payment of extra temporary labour etc. The amount spent is re-couped. (para 388 OM –VII)

Fees & other expenses for Counsel in connection with Civil Suits. :- The claims are preferred on contingent bill and is accompanied by sanction of CPA. Certificate from the legal member. Certificate of the reasonableness of the rates. In the case of out of pocket expenses details of the expenditure and a certificate from the 60 counsel that the amount has actually been received in support of the claim.(Para 397 OM. – VII) Payee’s stamp receipt.

Honorarium to Blood Donors :- Honorarium of Rs.20/- & Rs. 40/- in r/o rate group is paid to the Blood donors from the Imprest held by the Hospitals and is post audited. A certificate to the effect that the individual acted as blood donor for resuscitation of entitled patients treated in Armed Forces Hospitals. 1) A certificate from the OC Hospital that the blood collected has utilised for the treatment of the entitled person.

2) The claim is supported by payee’s receipt.

INCIDENTAL & SISC BILLS – IMPREST SECTION: 1) Expenditure on account of recurring and non-recurring nature incurred by various ships/Estts. which are usually booked to locally controlled code heads like 677/01 (By ships), 677/02(By estts.) etc. are called ‘I & M Grant’ bills. Audit and payment of these of these bills are vested with Imprest section. 2) Before audit and payment of these bills, the preliminary understanding of their nature and purpose should be ensured. I) I & M Grant allotment is meant to meet the urgent/petty requirements of Ships/Estts. II) Sanction can be accorded by COs of Ship/Estt. to incur expenditure from the above allotment within their fin. Powers. It should be ensured that sanctions are not so accorded to get it within their fin. Powers by splitting up the sanctions. III) Funds are made available by FOC-in-C, Hqrs.WNC/SNC/ENC. 3) Before we come to audit points, Auditors dealing with the I & M grant bills should ensure compliance of the following basic procedures strictly. a. Bills are always received thro’ bills register. b. Ensure that the dated stamp of ‘R’ Sn. has been affixed in the bills. c. Entered in the workbook on the same day. d. Bills are cleared within 7 workings days from the date of their receipt.

AUDIT PROCEDURE : When a contingent bill is received, it should be seen whether the same pertains to a ship or Estt. after ascertaining the above, the following audit points should be checked before sending the bill to ‘Accounts Section’ for getting ‘availability of funds’ confirmation. In 61 case the funds are not available return the bill immediately for resubmission after getting allotment of funds. i) The bill is duly countersigned by the competent authority. For this purpose, the specimen signature register maintained in the section should be verified. ii) Authority for incurring the expenditure is quoted in the Contingent bill. iii) Sanction letter is attached in original. iv) If items are purchased on competitive basis, necessary C.S.T. is enclosed with recommendation. v) Original copy of supply order should be enclosed vi) The amount sanctioned is within the powers of sanctioning authority. vii) Code head to which the expenditure is debitable is indicated in the sanction letter. viii) Any sanction issued for incurring an expenditure is valid for only one year from the date of issue. This should be checked. ix) CRVs should be attached (in duplicate) x) Pre –receipted bill should be attached. xi) Mode of payment (i.e) whether by payment authority or cheque should be indicated. xii) Last charge is indicated in the top right hand corner of the Contingent bill.

PAYMENT PROCEDURE :- After availability of funds is confirmed, 15) Payment authority proforma or cheque slip, punching media should be prepared in duplicate and audit enfacement should be made in the bill.

II) Bill No. and date, amount, nature of expenditure should be entered in the respective NRC/ITR registers as the case may be (for this purpose the NRC register should be item wise and ITR Contractor/firm wise should be maintained). before issue of cheque slip/Payment Authority.

Note :- The following procedures should NOT be followed and strictly ‘AVOIDED’. I) Never handover payment authorities without registration by ‘R’ Section/Sections. II) Never handover payment authorities without suitable instructions from your superiors. III) Do not take up ‘Availability of Funds’ without audit as it may subsequently result in double debit and lapse of funds if the bills are returned unsanctioned with some audit points. IV) Do not make provisional payment even when requested without the specific sanction 62 for the same by Competent Authority. V) If the bills are to be returned, observe all the audit points at a time and strictly avoid returning bills second time with additional new points. VI) Do not entertain any rep. from the private party or Naval Unit at your level. Always direct them to your superiors.

The above audit procedure were in general to be followed in all I & M Grant bills. Specific audit points to be looked into various items of expenditure are given in OM Part VII, IMPREST SECTION Chapter . However, the following important audit points may be looked into in the following bills. :

Bills in respect of Typewriter: i) Repairs are carried out only by authorized agents. ii) Bill should be supported with the following certificates. 1. Charges are fair and reasonable. 2. Repairs are carried out satisfactorily and were due to fair wear and tear. 3. Repair charges are not claimed in respect of any new machine during the first 12 months of its sale by the firm. 4. History card is maintained/posted. 5. Typewriters for which repair charges are claimed are held on charge actually and are bonafide Government property.

Telephone/Trunk Call bills: a) Original Telephone bills only certified buy the C.O. b) Certificate to the effect that the telephone circuits for which rental charges are paid within the authorized scale. c) Calls are made on bonafide Government purpose only.

ISSUE OF MILK – ASD a) A certificate to the effect that milk was issued to; I) individuals engaged in lead poisoning, lead petrol filling sheds, II) inspection staff who are engaged in inspection work during manufacture of explosives etc., 63 III) It was not possible to arrange for milk thro’ service channel. b) Original copy of milk account and certificate as per Navy Order 125/68. c) Total quantity of milk issued and the amount claimed are arithmetically correct. d) The claim has been scrutinized by the NLAO and endorsement exists on the bill.

NOTE : Particulars of charges compatible under various heads are given in the RDR Head (Xerox copy enclosed). While auditing the bills it may be ensured that expenditure is incurred only for those items.

Bills for local Purchase of Stationery: All articles of stationery are normally to be obtained from NSD concerned or stationery office, Calcutta. Local purchase of items of stationary may be resorted to under certain conditions. The authorities competent to accord sanction for local purchase are laid down in the Govt. letter under reference.

In the audit it will be seen that I) Sanction of the CPA has been accorded for the local purchase and the same is linked with the paid vouchers to avoid double payment in r/o the same sanction. II) The sanction indicates the annual financial limit upto which local purchase can be resorted to by Ship/Estt. has not been exceeded. III) The purchase has been made in r/o the essential items to meet the normal requirement limited to one months stationery or otherwise certified as operational requirements urgently needed.

IRLA SECTION

OBJECTIVES AND FUNCITONS OF IRLA SECTION The main objectives of IRLA Section are

a) To authorize changes in entitlements of Pay and Allowances and admit specified claims of service officers and sailors.

b) To ensure that pay and Provident Fund accounts of service officers and sailors are maintained correctly by NPO Mumbai.

c) To verify the correctness of leave accounts of service officers maintained by NPO Mumbai.

(1) The pay accounts of service officers and sailors are centrally maintained by NPO. This is a service organization under the administrative control of NHQ. However, NPO is subject to control of Ministry of Finance (Def) exercised through CGDA and complies with such orders as CGDA issues in consultation with NHQ.

What is IRLA System.

Under IRLA or IPA system the pay and allowances as per entitlement are credited to a running account for each officer/sailor. The monthly pay of the officers and sailors is credited in their Bank Accounts through ECS.

How IRLA is opened.

On receipt of NHQ letter/signal/NA list/Gazette notification, NPO opens an Authorisation IPA on Form IN Pay 223-A (Authorisation Officers ) Part I. It will contain the following information: 65 1) Particulars of service as Midshipman, SLT, Lt, Lt Cdr etc. Date of authority, Pay account No. (Personal Number).

2) Nature of commission, particulars of seniority.

3) Remarks

4) Date from which due.

5) Basic pay

6) Qualification Pay

8) KMA

9) Flying Pay

10) Total

11) Reference to authority for the charge

12) Authorisation slip No.

13) Initials of ASO

14) Remarks

Simultaneously NPO will raise an authorization slip online for IN (Pay) 223-C which will contain pay account No. Rank and Name of the Officer, nature of casualty with authority, date, BP, QP, DA, NPA, KMA and forward to IRLA Section for audit. IRLA Section conducts the audit of Authorisation slips with reference to the orders and approves the same under the initials of AO in the case of Officers and AAO in case of sailors. Authorisation slips are returned to NPO online. For each casualty separate authorization slips are raised by NPO and audited by IRLA Section before giving credit in the IPA. NPO on receipt of OM VII authorisation carries out the changes in the IPA.

The disbursement IPA has been computerized by NPO. A statement of entitlement i.e. pay slip is generated on computer. It contains Name, Rank, Personal Number, Month of account, particulars of credits, amount, particulars of debits, amount. Basic credits includes BP, QP, DA, KMA, CA and basic debits includes DSOP, MCA, PLI, CGIS, INBA, Allotment and Net Entitlements. 66

Naval Personnel Posted to other Embassies

In respect of officers/sailors posted to Embassies other than U.K. their Pay accounts are maintained by NPO monthly. The pay and allowances due to them are paid by respective Embassies based on the pay slips issued by the NPO to the Embassy showing the last rates of pay and allowances as exhibited in the pay slip for recovery duly checked by IRLA Section. The original copy of the pay slip will be dispatched to the Officers, duplicate to the Embassy and triplicate returned to NPO.

Any subsequent changes are also intimated to the Embassy through Pay Slips. The debits for payments made by Embassy on salary bill on the authority of pay slips are received in the Accounts section through Min of Ext. Affairs duly supported by original salary bills of the Officers/sailors. These bills are scheduled to IRLA Section. The IRLA Section will verify the correctness of each salary bill with reference to the entitlements and disbursement recorded in the IPA by NPO who also receive an advance copy of the salary bill.

GROUP 1

31. Abstract of Receipts Charges

The IPAs are closed every month in respect of officers / sailors. The balances of all the IPAs are extracted in separate format for credit and debit sides. The total are struck for each item and one line summary is prepared. This is called Abstract of Receipts and Charges. When the abstracts are received in audit section –

(1) It will be seen that the castings are 100% correct.

(2) The opening and closing balances are correct

The consolidated abstract of Receipts and Charges of the pay and allowances of 67 IN personnel will be compiled by the IRLA Section to the relevant code heads as prescribed in the classification hand book.

It may be maintained here that since the debits and credits in the abstract of Receipts and Charges represents credits and debits to the Govt. all the debit in the Abstract are credits in Punching Medium and all the credits are debited in P.M.

1. The opening credit balances will be adjusted by debit to field deposits and the opening debit balances by credit to field deposits.

2. The Pay and Allowances are debited to service (Pay) head viz 1/601/01 officers and 1/600/02 for sailors.

3. Misc. credits will be debited to service head concerned or to remittance head.

4. Undelivered postal money orders credited in IPA will be debited to Suspense Head viz 0/018/61.

5. Amounts credited in IPA on account of Family Allotment money orders will be compiled by debiting the relevant service head viz for officers and for sailors.

Note: So far as service heads are concerned the debits and minus debits under a particular code head are grouped together and totalled and only the net amount is included in the punching medium.

Debit side :

1) As advances paid through the cash/Imprest accounts are debited in the first instances to Suspense head viz 0/018/61 by the Imprest Section, the recovery of such advances will be credited to the same suspense head.

2) In the case of Family allotments the payments are debited in the first instances, to suspense head by the Imp. Sn. The recoveries made on this account are credited to this account.

3) Recoveries on account of PLI will be offered to the Director, PLI by means of 68 schedules.

4) Fund deductions will be credited to fund head of account.

5) Income Tax deductions will be credited to I.T. head of account.

6) Misc. recoveries will be credited to service receipt head or to the remittance head concerned.

7) Closing credit balance will be adjusted by credit to field deposits head, closing debit balance by debit to field deposit.

The classification (Punching Medium) will be checked by the AAO & AO of IRLA Section. Original Punching Medium will be sent to EDP, duplicate to the Accounts Section duly supported by the following schedules.

1. DSOP Fund Schedule

2. AFPP Fund Schedule

3. Motor Car Advance recovery Schedule/Cycle Advance Schedule.

4. Bicycle Advance recovery schedule

5. HBA Advance recovery schedule

6. Schedules in respect of debits/credits passed on to other AO and CDAs.

7. Reconciliation schedule in respect of amounts compiled to Suspense Head.

8. PLI subscription schedule.

32. Adjustment of DID/MID Schedules

Occasions may arise when accounts are required to be transferred from one department to the other. These are called exchange account. Various types of exchange accounts take place for which schedules are prepared accordingly. 69 DID schedules when transaction (Dr/Cr) arising in the books of one CDA is finally adjustable in the books of another CDA then such adjustments are carried out through Defence Exchange Accounts. They are required to be passed through DID schedules. For instance: one officer of Army has been seconded to Navy, the balances of DSOPF/AFPPF Group Insurance etc. are required to be passed from Army to Navy. Based on P.M. prepared by the Audit Section, PCDA(O) Pune (A/c Sn) will prepare DID schedule and send it to PCDA(N). PCDA(N) A/c section will scrutinize these schedules and adjust it to the proper code head simultaneously forwarding the details to the audit section (IRLA). The audit section will authorize the NPO to credit the amounts shown in the schedule. The NGIS amount passed by ORs Cell of Regional Controllers will be intimated to the Pay Sn. To enable them to pass on the credit to the Secretary NGIS.

33. Recovery of Leave Salary and Pension Contribution

1. Leave Salary :

Leave Salary contribution or 19% of pay drawn in foreign services will be remitted by the borrowing to PCDA(N), IRLA Section. It is the duty of the IRLA Section to ensure that all leave salary contribution has been received in respect of personnel on deputation. Interest will be charged for the unpaid/delayed payments of the contribution.

2. Pension contribution

This is recovered from Defence service personnel during their deputation to foreign services. The receipt relating to the credit pension contribution will be watched by IRLA Section.

Reconciliation of the amounts compiled by IRLA Section to code 0/018/61 vis-à-vis the amounts ordinarily compiled by Imp. Section. 70 1. Introduction

1) Advances of Pay and Allowances are paid to Sailors / officer by various ships and Estt. The acquittance rolls together with two copies of Top Schedules (giving list of Acq. Rolls and amount therefore) and the total payment for each day are sent by ships and Estts. to the NPO. The NPO allots a Demand Register No. as reference to each top schedule and returns one copy to the Imprest Section.

2) On receipt of the monthly cash accounts from ships/Estt the Imprest section debits the payments made on acquittance rolls to the suspense head 0/018/61. After audit and compilation, the top schedules in support of each punching medium prepared by the imprest section are forwarded to the IRLA Section monthly.

3) After taking action to enter each acquittance roll payment in the concerned IPAs the NPO renders the monthly/quarterly report (officers and sailors respectively) to the IRLA section giving details of DR No. relating to the top schedules of the acquittance rolls and amount thereof. After checking the statement, the IRLA section credits the amount shown in the statement to the suspense head 0/018/61, thereby relieving the earlier debit made to this head by Imprest Section.

4) In respect of advance of pay and allowance made to the Naval Officers and Sailors attached to Army, Air Force, the payment advices are received by IRLA section through ID schedules through Accounts Section.

It has to be ensured that all the disbursements on account of pay and allowances made by Ships/Estts and other services/formations are correctly compiled and they agree with the amounts debited to the IPAs of the individual officer/sailors. For effecting the reconciliation, the Register is to be maintained by the IRLA Section in the proforma attached in accordance with the instructions indicated below. The register will be known as “Reconciliation Register 0/018/61”. 71 POST AUDIT OF IRLAS IRLAs of Naval Officers/Sailors are maintained by the Supply officer-in- charge, NPO and kept in Binders separately. They are arranged according to personal number wise.

Audit of Disbursement IRLAs and connected documents is carried out quarterly.

Quantum of quarterly audit is 33 1/3 % of the IRLAs. It should be ensured that all the IRLAs are audited at least once in a year. In other words in the fourth quarter of the year the IRLAs which have not been audited during the preceding three quarters have to be taken up and competed.

When the state of accounts in a Quarter is found unsatisfactory it should be brought to the notice of PCDA(N) who may increase at his discretion the quantum of audit.

The selection of IRLAs and other documents is given by Officer in charge, IRLA Audit section arbitrarily.

From the practical point of view when the audit of IRLA is taken up personal number wise, the Index of the IRLAs should be looked into by the auditor to see whether any new IRLAs have been added, during the quarter, on account of enrollment or reduced on account of discharge/retirement.

The exercise is necessary to detect as to whether duplicate (two) IRLAs are maintained for one and the same individual and pay and allowances are paid twice.

It is also to be ensured that whether any Pay and allowances are being admitted in the IRLAs without allotting Personal No. in respect of recruits pending receipt of Draft Order Enrollment and if so the amount paid in respect of these IRLAs has been included in the abstract of receipts and charges.

During audit it should be ensured that the entitlements i.e. pay and allowance and recurring allowances noted in the disbursement. IRLAs are the same as those intimated by the entitlement group. Any discrepancies found are to be traced out and placed under 72 objection if necessary.

The fundamental principles of audit are:

1) All credits are traced from the ledger into relevant documents and vouchers.

2) All debit entries from vouchers/Genforms etc into ledgers.

3) Opening balances tally with the previous month/quarters closing balance.

4) Monthly deductions on account of fund, allotments, remittances etc, are made correctly and regularly.

5) Income tax recoveries are made wherever applicable.

6) Recovery of license fee and allied charges is made with reference to the rent bills received.

7) Every entry notifying the granted leave is checked from Gen form. Daily list etc. into the IRLAs

8) It should be ensured that debit balances are liquidated promptly.

9) Audited ledgers and connected documents are enfaced suitably under the dated initials of auditors.

10) Audited balances will be ringed round and initialled by the auditors.

Audit of recoveries in Part II of IRLAs - Allotments and Remittances. a) It has to be ensured that the amount of allotments and remittances made are actually recovered through IPAs. b) M O Commission is correctly charged in respected of sailors serving ashore. c) Allotment in respect of sailors marked ‘Run’ is discontinued. 73 Miscellaneous Demands It is to be ensured that all Misc demands such as hospital stoppages. Barrack Damages etc. are recovered through the IPA.

PRE AUDIT/POST AUDIT OF CLAIMS/DOCUMENTS Claims received in the IRLA section and audited with reference to provisions contained in OM. VII and relevant orders issued from time to time are as under.

ITEMS OF WORK PRE-AUDITIED 1. Reimbursement of Furniture Hire Charges - initial and half yearly claims pre – audit, rest of the month – automatic credit.

2. Reimbursement of License fee (HRR claims in r/o Officers)

3. Hostel Subsidy claim

4. Terminal Gratuity claim of SSC Officers.

5. Submarine duty allowance claims.

6. Sea going Allowance claims of officers

7. Finalisation of pay accounts

8. Finalisation of DSOP/AFPP Fund Accounts

9. Encashment of Leave

10. Service Gratuity DCRG in r/o of Sailors discharged without Pension entitlement.

11. Online Authorization slips on account of

12. Recruitment /Commission of Officers

13. Increments

14. promotions

15. qualification Grants/pay (since deleted as concurrence has been given to NPO to 74 afford credits directly in IPAs after audit by the Section)

16. Flying Pay

17. Changes in DA

18. Survey pay

19. Kit Maintenance Allowance

20. Submarine Allowance

21. Non-practicing allowance

22. Specialist pay

23. Award Deprivation/Restoration of GCB (Good cadet badge)

24. Cessation of pay Retirement/Discharge/Death etc. (This claim is raised manually unlike the other casualties which are raised online)

25. Re-enrolment

26. Punishment Reduction in Rank/forfeiture of seniority etc.

ITEMS OF WORK POST-AUDITED 1) Aquittance Rolls-Officers & Sailors

2) Allotment/Remittance of Officers & Sailors

3) Advances –MCA, HBA, SCA, PCA etc.

4) License Fee Bills

5) Recovery memos LTC/TA/DA Officers & Sailors

6) Barrack Damages intimations

7) Pilotage Claims 75 8) Money Order commissions

9) MLR, CILQ, Tuition Fee etc., Sailors

10) Renewal of Outfit allowance

11) AFPP Fund / DSOP Advances

12) Audit of Fund Accounts

13) Reimbursement of Electricity & water Charges

14) Audit of IPAs.

ROLE AND FUNCTION OF NAVAL PAY OFFICE, MUMBAI Pay Accounts of the Naval Personnel are maintained centrally by the Naval Pay Office Mumbai a service organisation and audited by the CDA (N) Mumbai.

Naval Pay Office was established in June 1945 as centralised Pay accounting Unit with the task of looking after the pay and accounts of Officers & Sailors of the Royal Indian Navy. This unit was then headed by the Pay Master-in-chief and was assigned the role of merely crediting and debiting accounts.

The role of NPO has been constantly changing . In 1956 it started maintaining IRLAs, 1976 Fund accounts of Officers, leave records and in 1994 Budgeting under NMS

The role of NPO is to centrally maintain the pay and Fund accounts of the Naval Personnel. Pay accounts of Officers and Sailors are maintained on Individual Running Ledger Accounts (IRLA) as per the Regulations laid down in the centralised pay accounting Manual, the pay and allowances Regulations (Navy) Financial Regulations Part I and Part II, Navy Instructions and Navy Orders issued from time to time.

The pay account maintained for each personnel is a running account.

The Pay Account is opened with reference to appointment letter from NHQ, Signal/Genforms notifying the date of reporting and commencement of training in respect 76 of Sailor with reference to Genform noting the date of reporting to training Estts.

IRLA of Naval personnel is maintained in two parts in two sections in the NPO i.e. Authorisation IRLA and Disbursement IRLA.

The main sections in the NPO are

Authorisation Officers and Sailors

Disbursement Officers and Sailors

Coordination Officers and sailors

DSOP Fund Officers

AFPP Fund Sailors

DEMOB Officers and sailors

EDP Officers and sailors

Authorization Slip is raised online for the revision in the pay and various allowances including increments as due for preaudit and approval. On approval, the dues are adjustment in Disbursement IPA. Local compensatory allowances such as HRA. HCA and the like are adjustment by the NPO in the Disbursement IPA’s without incorporating in the authorization IPA.

Disbursement section maintains the Disbursement IPAs by updating the credit and debit entries and balance is struck which indicates the entitlement for the month.

IPAs of the Officers are closed monthly after closing the Pay-Accounts Statement of Entitlement is forwarded to the ships/Esstt. Net entitlements are disbursed by crediting the same in the Bank account of the concerned officer/sailor through ECS.

DSOP Fund Section maintains the DSOP Fund accounts of the Officers, closes the accounts every year and forwards the statement of DSOP Fund Accounts of Officers. Initiates action to finalise the fund accounts on retirement/release and arranges for 77 provisional payment after final settlements and approval by IRLA Section.

DEMOB Section initiates action to finalise the pay accounts on retirement/release after crediting the dues and recovering outstanding demands. Arranges final settlement, audit and authorization of the terminal balance.

Naval Pay Officers prepares and submits abstract of receipts and Charges every month in respect of Officers and quarterly in respect of Sailors, showing full break up to IRLA Section for codification and compilation.

NPO has been placed with Cash Assignment called Allotment and remittances for issuing cheque to the Officers, Bankers and other authorities at Mumbai only. NPO does not deal with any cash transactions. Cash Account will be submitted to Imprest Sn. of PCDA(N) for compilation and audit.

xxxxxxxxxxxxxxxxx 78

LOCAL AUDIT

TRAINING PROGRAMME AT RTC PUNE :-

AUDIT OF PMT. NAVAL STORE :- The following procedure is followed for audit of Pmt. Naval Store 13. Categories of Naval Store :_ (Ref. Para 137 NLAO’s Manual) 1. Pmt. Naval Store 2. Consumable Store 3. Quasi Pmt. Store 14. Items should not be held by the Unit/Ship more than the authorization 15. 3. Item held on charge should not be kept Ideal without use. 16. Pmt. Items are distributed amongst the Department on PLL (Pmt. Loan Ledger) 17. PLL Balance and Pmt. Ledger Balance should tally. 18. Custodian of the store is also hold a duplicate copy of PLL (Which is not auditable document) where custodian is signing the both PLL. 19. Pmt. Item if it is become unserviceable/lost will be replaced against survey report/approved loss statement. 20. Pmt. Item required but not authorized to the Unit/Ship is taken on loan with sanction of Competent Authority which is to be returned on expiry of loan period. 21. Pmt. Ledger and PLL folios are maintained in the prescribed form as NSO (enclosed) 22. Mustering is carried out by the custodian and recorded in the both PLL. 23. . The detailed procedure for maintenance of Pmt. Naval Store is laid down in INBR-12. 24. Categorization of Pmt. Naval Store and maintenance of Pmt. Ledger is at user unit level and not with depot. (exception where the depot is using for its own) 25. Pmt. Naval Store inventory is authorized by the Govt. at the time of commissioning of ship/Establishment and issued in the form of Pmt. Warrant by the Govt. as per categorization of ship and unit. 26. The Naval Store Depot will procure such items only against survey report/loss statement if it is not available in depot. 27. It will be ensured in audit that the authorized quantity to be held by the Ship/Unit is specifically noted on the top of the ledger folio with authority. 28. Pmt. Stores are drawn only in the circumstances laid down in Art. 92 and 484 of INBR 12 (Extract enclosed.) 29. Pmt. Ledger entries are made with reference to Warrant. 79 PROCEDURE FOLLOWED IN AUDITING SHIPS ACCOUNTS :-

1.The Ships are classified in two parts :- No, (i) II of Para 137 (a) Self accounting ships:- Accounts are maintained by the ship itself. 1. Cash Accounts :- Warrants are issued by the Imprest Section of Pr.CDA to Ships to draw the monthly cash from BLO and Cash accounts are rendered to Imprest Section monthly in Two parts. i.e for the period 1st to 20th to rendered by 30th and 21st to 31st to be rendered by 10th of following month . 2. Victualling Account (Ration account) :- Accounts are rendered to NLAO Monthly and these accounts are audited in office itself. 3. Store account :- Store accounts are maintained in the Ship as per procedure laid down in INBR 12 1. Pmt. Naval Store supported with PLL. of 5 department maximum.[ship office,, mess strap, medical, NAS{Naval armament}Logo. 2. Consumable Naval Store.` 3. Clothing Ledger 5. Stationery Ledger 6. Oil & Fuel Register 7. Gunnery Account 8. Ships Office (a). Service Documents (b). Railway Warrant.

(b) Non-Self accounting ships:- Accounts are maintained by the BLO.(Base Logistic Officer). Non self accounting ships are promulgated in Navy Orders issued by Naval Headquarter.{para 142} Permanent Naval Stores :- (1) Maintained in loose ledger follioIN_329/S-151 binder form no IN-332 S-155. (2) Accounts are maintained in Two Section A Valuable and Attractive Articles Section B normally rigged in place and contained portable Articles. (3) The certificates will be seen in audit as stipulated in sub-Para 3 of 143 NLAO Manual Consumable Stores:- Para 144 The issues are treated as outright and no accounts of receipt and issue of consumable stores to be maintained. The linking of receipt voucher is done in to the valuation ledger wherever applicable. However the valuation ledger is not being maintained due to abolish of monetary allotment. And linking is done with reference to receipted copy of the demand on record.

AUDIT OF GUNERY ACCOUNT :-Para151 of NLAO Manual.

The following documents are maintained and produced for audit :-

m) Naval Armament Store Ledger :- It is in three parts :- 1) Ordnance, containing all the ordnance Stores 2) Magazine, containing all the Magazine\ 3) Air Armament and aviation Stores. 80 n) Gunners, Torpedo explosives, demolition and depth charges ledger S-1423- Acruizers,destroyers and frigates. o) Gunner, Torpedo and Para vane/Non explosive ledgers S-143 cruisers and destroyers. p) Audit checks are stipulated in para 151 of NLAO Manual (Page70)

Link the expense book with expenses vouchers :- Sub para (v) of 151 of NLAO Manual.

(3) Expenditure of ammunition as shown quarterly in the IN 327 and in the Torpedo explosive ledgers S-1423-A tallies with the summary at the end of each quarter as recorded in detail in respective expense books S-1418 and S- 1418A respectively. It should also be seen that the expenditure of all the ammunition and explosive Stores is within the practice allowances prescribed in the relevant Government orders. In the case of small arms ammunition the expenditure should be supported by the expense vouchers S-301. (4) Losses are dealt with in accordance with the provisions of NI 1/S/81 (New NI 1/S/2006) and that the losses of small arms are reported by the IN authorities to the local civil police as soon as the loss has been known to have occurred. (5) That fired cartridges are returned to the NASO (Naval Armament Store Officer) in case of Mumbai to NAD Karanja) at the earliest convenience. It should be seen that there are no abnormal losses in the collection of fired cartridges. (6) The balances held on charge at the end of the period are within the established proportion as shown in the warrant of Naval Armament Stores in respect of each ship/Establishment. (7) The following certificates have been completed in all respect :- 1) Accounting Officer : Certificate giving an account of the number of packs in the Ships ledger and number of pages in each pack at the time of taking over. 2) Accounting Officer & Commanding Officer IN Certificate giving the report of stock taking of Naval Armament Stores on changing of the accounting officers and annual muster on 31st March every year. Any deficiencies noticed during stock taking are to be attested by the mustering officer and countersigned by the Commanding Officer. 3) Accounting Officer :- List of Stores on charge in excess of established proportion to be completed on charge of accounting officers and Annual muster on 31st March every year. 4) Accounting Officer & Commanding Officer :- Account of fired adapters, cartridges cases, primers packages etc. at the end of each quarter and on change of accounting officers and attested by the Commanding Officer. 5) Accounting Officer Inspecting Officer :- Regarding expenditure of ammunition in the expense book, instructions printed in the relevant forms of the ledgers are strictly adhered to. 81

AUDIT OF SERVICE DOCUMENTS OF SAILORS :- Para 191 of NLAO Manual.

27. Twenty five percent of the service document of the sailors will be subject to check within each period of approximately 12 months. It will also be seen that :- 15) The grant of leave is correctly entered in the leave sheets and the concession of free passage is limited to one return passage per year. 16) The entry giving the distance between residence of the sailor in his home town to the nearest Railway Station is made in red ink at the top of the leave sheet. 17) Entries in the default sheet effecting pay and allowances, as recorded therein are published in genforms. Cases where such entries are made without reference to genforms will be extracted and forwarded to the IRLA section for necessary action. 18) Entries published in drafting orders and genforms are posted in the service documents. For this purpose the drafting orders and genforms for one month will be verified with the entries in the service documents. 19) T.T. availed should not considered for accumulation of leave in case of encashment of leave.

RAILWAY WARRANTS :- IAFT-1707, IAFT-1707-A AND IAFT-1752 Para 185 to 190 of NLAO Manual.

Railway Warrants will be checked on general lines to see that :- 8) The forms are kept in safe custody and issued only under the signature of the officers specifically authorized for the purpose. 9) A register on IAFZ – 2012 recording the receipt and disposal of books is maintained and monthly certificate endorsed thereon by the Commanding officer. 10) In case of Cancelled form the portion containing the serial number of the cancelled form is cut off and pasted to the relevant counter foil after cancellation 11) The umbers and dates of daily lists, drafting orders, genforms etc. authorizing the move or the grant of leave are quoted on the counterfoils of the warrants. 12) No blank forms are kept signed by issuing officer. Instances where they are so kept will be reported to the Pr.CDA(Navy) for suitable action. 13) Warrants used, when finally moving for conveyance of authorized baggage under Rule 233 TR have been linked with the number and date of warrants(s) already used for conveyance of the baggage. 14) Any case in which etra expenditure is caused to the state on account of conveyance of excess baggage has been dealt with under Rule. TR 15) Party warrants are issued when a large number of personnel travel from the same starting stations to the same destination on the same date. 16) The Word Mail/Express/Ordinary is scored out wherever inapplicable. 17) Accommodation in the higher class is not authorized for journeys of sailors returning from sick leave 18) The particular nature of duty or leave has been noted. 19) Losses of Railway warrants are promptly reported to the Railway Authorities. 82 Naval Headquarters and the PCDA(N) & CA(Fy.) 20) Warrants are issued for the authorized class of accommodation only. 21) Losses of Blank forms are reported to Naval Headquarters, the Railway Authoritiea and the Pr.CDA concerned and the loss regularized under orders of the Government of India. 22) After check the counterfoils will be endorsed accordingly under the dated initials and designation of the official on the reverse of the last counterfoils issued up to the date of check. After the last batch of counterfoils of a completed book has been checked a note to this effect will be made in the register (IAFZ-2012). A completed book will not normally be checked again during subsequent visits.

DETAILED CHECK OF RAILWAY WARRANTS :- Para 186 of NLAO Manual.

11) Detail check of Five Percent is to be carried out as laid down in Para 186 12) To see that the genform, No. & Date, Purpose of journey, etc. is mentioned. 13) No warrants have been used for moves in connection with training camps ************* 83

PAY SECTION TRAINING MODULE

INTRODUCTION: The pay section of PCDA/CDA and their sun-offices are entrusted to deal with pay and allowances of Advances and recovery thereof. The scope and objectives of the pay section are broadly classified as under:- The Scope 30. to pay non due dates salary and other dues as per entitlement

31. to maintain all necessary records correct and complete in all respects .

32. to advise Administrative and executive authorities on matters relating to service conditions and entitlement of Defence Civilians.

Duties

The Pay Section deals with

a) Audit and payment of all claims of pay and allowances of Civilians Officers and Personnel. b) Payment and recovery of leave salary and pension contribution in r/o Civilians lent for service to and from civil departments of Central/State/Foreign Govt/Statutory Bodies etc. c) Classification of all receipts and payment brought to account through pay bills or other claims. d) Audit of annual establishment return in r/o permanent employees. The processing of bills

On receipt of the Pay bills including Supplementary and contingent bills Record Section, they will be entered in the bill register and then be distributed to the auditors concerned who in turn will take into their work Books. the bills will be meticulously checked as per the drills prescribed in Annex-A & B and in accordance with Para 183 and 184 of Defence Audit Code. After exercising the prescribed checks, the auditor will complete the payment enfacements and the classification there of. He will prepare a punching medium in duplicate and submit to the AAO/SOA for review & submission to the Officer I/C of Pay Section.

When the Officer I/C passes the pay bills, the bills will be entered in the Daily Payment Sheet ( IAFA 728) and forwarded to the Disbursement Section for payment in respect of cheque payment. Otherwise Payment Authority will be issued by the Disbursement Section. 84

Payment of Sy. Pay Bills Arrears of Pay & Allowances etc. are not drawn in regular monthly pay bills, but in supplementary pay bills. Beside, Tuition Fees, Encashment of leave are also claimed through Sy. Pay Bills.

In auditing supplementary bills it will be seen whether all recoveries on account of Income Tax, Licence Fee bills group insurance etc. have been correctly done for the period for which the arrears of pay are drawn.

Advances of Pay.

Advances of pay in transfer are drawn by head of office or Officer Commanding in respect of personnel working under them on requisitions supported by a copy of the order or the Authority sanctioning the move. The amount so payable will be restricted as per the prescribed rules,

Payment of Advances

The pay section is also responsible for audit and payment of the following interest bearing advances;- 1) Motor Car 2) Motor Cycles 3) Bicycles 4) House Building Advances 5) Computer Advances etc.

Civilians Personnel paid from Defence Estimates, who are governed by Civil Services Regulations are entitled for the aforesaid advances; in accordance with Rules under GFR.

It will be seen during audit of above claims as to whether a) The individual/Officer is eligible to such advances b) Sanction of the competent authority exists c) Necessary allotments of funds are available . d) Similar advances have already been paid and fully liquidated.

Recovery of Advances.

When advances are paid they are invariably posted in a Demand Register to watch the monthly recovery and adjustment thereof in full including interest at prescribed rates.

Recovery Of Licence Fee Bills

Licence Fee Bills in r/o Defence Civilians, received from various AAOGE/BSO under top-lists will be acknowledged on the duplicate copy of top-lists to the concerned 85 AAOGE/BSO. The LF bills will be pasted in the guard files, which will form the Demand Register for recovery of LF Bills.

Last Pay Certificate

When Gazetted or non-gazetted Officers are transferred from the payment of one Audit Office to another in India, a last pay a certificate (LPC) on IAFA-445 will be issued. The LPCs will be preferred by the Unit from where the Officer/Individual is proceeding on transfer. The LPC will be audited by the concerned Audit Officer who will see whether the particulars regarding pay & allowances & Demand outstanding are correct and will emboss the LPC seal on the Original copy and forward the same to the Officer Commanding and the duplicate copy to the Audit Office of the new Unit duly Countersigned.

Superannuation lists and Disposal thereof

A register in the prescribed proforma will be maintained Unit wise by each groups in Pay Section. This list will be compared with the dates of birth shown in the March Pay Bill/nominal Roll and with the previous lists, to ensure whether the dates shown are correct.

The Datasheet' Final LPCs are verified by the Pay Section with reference to Service Books and forwarded to PCDA (P) Allahabad, well in advance.

Final Settlement Claims

Claims on account of Final Settlement of CGIES and Encashment of leave are audited & paid by the Pay Section and noted in the Register of Nom- Recurring Charges.

Verification Of Service For Pension of Non-Gazetted

The service verification will be done by the Local Audit Officer with reference to the DO Part IIs and pay bills. Further it will be checked by Auditing controllers/pay audit officers upto the date of retirement.

Audit & Payment of Terminal/Death Gratuity Claims

The claims of terminal/death gratuity in respect of temporary/quasi permanent individuals will be dealt with under the provisions of Para 10 & 11 of CCS Ty. Service Rules 1965 by Regional Controllers Office after Pre audit by Test Audit Authorities. 86

Audit & Payment of Medical Reimbursement Claims of Defence Civilians The Medical Reimbursement claims in respect of Defence Civilians will be admitted on the basis of the geniuses of the claims as certified by the controlling authorities under CS (MA) Rules 1944r The medical claims will be checked as per the instruction given in Annexure C.

AUDIT DRILL – STORES SECTION

I. CONTRACTS

General principle for guidance of authorities which have to enter into contracts or agreements involving expenditure from public funds:-

1. The terms of contract must be precise and definite and there must be no room for ambiguity or misconstruction therein.

2. As far as possible legal and financial advice should be taken into account while drafting the contract and before they are finalised.

3. Standard formats of contracts should be adopted.

4. The terms of the contract should not materially vary without the previous consent of the authority competent to enter into the contract.

5. No contract involving an uncertain and indefinite liability or any condition of an unusual character should be entered into without the previous consent of the competent financial authority.

6. Wherever practicable and advantageous contracts should be placed only after tenders have been openly invited and in cases where the lowest is not accepted reasons should be recorded.

7. In selecting the tender for acceptance the financial status of the individuals and firms tendering must be taken into consideration in addition to all other relevant factors.

8. Even in cases where a formal written contract is not made, no order for supplies etc., should be placed without atleast a written agreement with respect to price.

9. Provision must be made in contracts for safeguarding Government property entrusted to the contractor. 88 10. Funds must be available to meet the expenditure against the contract.

11. The lowest tender has to be accepted as a rule; where a higher tender has been accepted (as an exception) adequate reasons should be recorded.

12. In case of contracts for which tenders were pre-scrutinised by the PCDA/IFA, the rates recommended for acceptance only should be adopted, and if the remarks/recommendations of PCDA /IFA have been overlooked, valid reason thereof are to be recorded in the Comparative Statement of Tender under the signature of the sanctioning authority.

13. Ensure that the authority sanctioning the contract is competent to sanction it.

14. In case of stores for which controlled rates exists, the rates contracted for should be within the controlled rates.

15. Contracts should contain a suitable clause regarding their termination on violation of contract conditions.

16. The places where articles are required to be delivered are specified in the contract.

17. In the case of transport contracts, the various types of transport and services required should be given in detail under each heading s applicable to the local conditions.

18. As per C.V.C. guidelines, it is very important to establish the reasonableness of price on the basis of estimated rates, prevailing market rates, last purchase price, economic indices of raw material / labour, other input costs and intrinsic value etc. before awarding the contract.

19. As per C.V.C. guidelines, detailed guarantee / warranty clause embodying all the safeguards should be incorporated in the tender enquiry and the resultant contract. It also needs to be ensured that in 89 installation / commissioning contracts, the guarantee / warranty clause should reckon only from the date of installation / commissioning.

II. OPENING OF TENDERS

Tenders should be deposited by tenderers or if received by post by officer of the administrative authority concerned in a securely locked box. No tenders are to be received after the hour stated in the notice to the contractor. Tenders will be opened in the presence of a board of officers and tenderers. The Board will scrutinize each tender and satisfy himself that the necessary earnest money has been enclosed therewith and that the tender has been properly made out in accordance with the instructions given in the tender forms.

III. SCRUTINY OF COMPARATIVE STATEMENT OF TENDER

The following points will be observed in dealing with Comparative Statements of Tenders:-

1. That they are in conformity with the rules in F.R.Part I.

2. That no local purchase of stores is arranged, supplies of which are to be made or required to be made by a central purchase agency, except with the concurrence of that authority.

3. That suitable suggestion by an invitation to the tenderer is made to reduce the rates originally tendered by him wherever justified, taking into the account the prevailing market rates and relevant factors.

4. Post Tender Negotiation :

1. As per C.V.C. guidelines (Central Vigilance Commission) circulated vide letter No.8(1)(h) / 98(1) dated 18.11.98, post 90 tender negotiation ate banned except in the case of negotiations with L.1. (i.e. Lowest Tenderer).

2. The Govt. of India has a purchase preference policy so far as the Public Sector Enterprises are concerned. Ban on post tender negotiations does not mean that the policy of the Govt. of India for purchase preference for public sector should not be implemented.

5. Purchase preference to Public Sector Enterprises.

The Department of Public Enterprises, Ministry of Industry vide O.M. No.DPE/13(19)/91-Fin. Dated 13.1.92, 15.3.95, 31.10.97, 10.2.98 and 14.9.2000 have circulated the policy of granting purchase preference to Central Govt. Public Sector Enterprises when they compete with private large scale units. It has been laid down, that where the quoted prices of Public Sector Enterprises or Joint Ventures with Public Sector Enterprises with a minimum value added content of over 20 % by the latter, subject to purchase in excess of rupees one crore, is within 10 % of the lowest price, other things being equal, purchase preference will be granted to the Public Sector Enterprises or Joint Venture concerned at the lowest acceptable price.

IV CALCULATION OF SECURITY DEPOSITS

d) For a contract not exceeding Rs.10000/- in value :– 10% with

a minimum of Rs.25/-.

e) For a contract between Rs.10000/- and Rs.30000/- in

value :- 7% with a minimum of Rs.1000/- and maximum

Rs.2000/-. 91 f) For a contract exceeding Rs.30000/- in value :– 5% with a

minimum of Rs.2000/-. If the S.D. exceeds Rs.6000/- this

may be specially fixed by Administrative authority at their

discretion.

g) In the case Army Service Corps (ASC) and Military farms

the S.D. for the contracts exceeding the value of

Rs.1,20,000/- will be fixed as under:-

1.5% of the value of the contract upto Rs.1,20,000/- 2. 2.5% of the balance value of the contract 3. Amount is to be rounded of to the nearest hundred rupees.

h) For short-term agreements S.D. is to be fixed at the rate at

(i) to (iv) above.

i) In the case of unregistered contractors, S.D. at 10% of the

total value of the agreement is to be fixed.

V. FORMS OF SECURITY DEPOSITS

1. Cash

2. Promissory Notes and stock certificate of the central or state Government, Municipal Debentures or Port Trust Bonds.

3. Treasury saving Deposit certificates and National Plan certificates 92 4. Post-office cash certificates, Defence saving certificates & NSS.

5. Fixed deposit with Nationalised Banks.

6. Post office saving bank pass book.

7. Fidelity Bonds approved by Government.

viii. 12 years National defence certificates.

ix. Other forms of security specifically approved by Government.

VI. POINTS TO BE SEEN ON SECURITY DEPOSIT WHILE AUDITING THE BILLS

1. Whether the amount of security deposit is as per the terms and conditions of the contract.

2. Whether the validity of the security deposit is as per the terms specified in the contract.

3. In case of non-submission of security deposit, the amount of the security deposit is to be recovered from the contractor’s bill. The details of recovery should be entered in the security deposit register. The amount should be released only after the expiry period of the security deposit as specified in the contract and also on receipt of No Demand Certificate from the contract concluding authority.. The amount can also be reimbursed in the case the contractor, who failed to submit the Bank Guarantee/Indemnity Bond at the time of submission of the bill, furnishes the security deposit at a later date.

VII. DRILL FOR AUDIT OF SANCTIONS ISSUED BY SERVICE HEADQUARTERS(NHQs)/LOWER AUTHORITIES 93 The following checks are to be exercised while conducting audit of sanctions issued by authorities lower than Government in consultation with associated IFA(Navy):- a. The authority sanctioning an expenditure has been empowered to sanction a particular expenditure.

b. The specific provisions under which the sanction has been accorded viz. Govt. letters, Navy Instructions etc. is indicated.

c. Sanction for a particular item of expenditure has not been split in order to bring the financial powers within the power of the lower authority.

d. The sanction should indicate the Head of Account against which the expenditure is debitable with the detailed expenditure code head.

e. The sanction should clearly indicate the amount of expenditure interalia indicating whether the cost of the item is inclusive of all taxes and duties or not.

f. In the case of sanction accorded for purchase of a particular item from a particular firm indicating the cost of item, it is to be seen that all purchase procedures have been complied with before issuing such sanction.

g. Whenever sanction has been accorded to incur expenditure towards purchase of item as new introduction to service, it is to be seen in audit whether sanction of the Government of India exists for new introduction of such items to service.

h. The sanction accorded to incur an expenditure during a particular year has been acted upon during the same year itself and should not be acted upon during the subsequent years unless it is specifically extended.

i. When the sanction has been concurred by IFA, a clause to the 94 effect that it has the concurrence of IFA is to be incorporated in the sanction.

VIII.. CHECKING OF ACCEPTANCE OF TENDER.

q) See that the particulars regarding quantity, rate, and cost of each item are furnished. The total cost is given in words as well as in figures.

r) If any condition incorporated under heading Special Instructions in a contract shows a major departure from a standard condition of contract, a reference may be made to the purchase officer seeking clarification.

s) That there is no omission of any important clause e.g. security deposit, Inspection of stores, date and place of delivery, dispatch instructions, name of the consignee and of the Accounts officer by whom the bill to be dealt with, Head of account to which debitable, etc.,

t) That the A/T has been signed for and on behalf of President of India.

u) That in the case of contracts placed on a state government department, the contract has been placed on the Governor of state concerned and not on the department, which is to supply the store.

IX. AUDIT OF SUPPLY ORDERS.

28. The terms of the supply order must be precise and definite and there must be no room for ambiguity of misconstruction therein.

29. The terms of the supply order once entered into should not be materially varied without the previous consent of the 95 authority competent to issue the supply order as so varied.

30. Supply orders involving an uncertain or indefinite liability or any condition of an unusual character should not be entered into without the previous consent of the competent financial authority.

31. Wherever practical and advantageous, supply orders should be placed only where tenders have been openly invited and in cases where the lowest tender is not accepted reasons should be recorded for not accepting the lowest.

32. Provision must be made in supply orders for safeguarding Govt. property entrusted to a contractor in the form of Security deposit/Bank guarantee at 2.5% of the contract value (minimum).

33. The authority placing the supply order is competent to place it.

34. Supply orders contain a suitable provision regarding their termination on violation of contract conditions.

35. The place of inspection and the place(s) where the articles are to be delivered are indicated in the supply order.

36. Name and address of the contractor has been indicated in the supply order. x) The following details should be indicated in the supply order:-

1. Name of the purchaser. 2. Contractor’s Tender number and date. 3. Name of the indentor. 4. Indentors indent number and date. 5. Designation of the Accounts officer against whom debit of the AT/supply order is to be raised. 6. Code head to which the cost is to be debited. 7. Date of delivery/date of inspection. 96 8. Place of delivery. 9. Terms of delivery. 10. Despatch instructions. 11. Name of the consignee. 12. Method of purchase indicating whether the purchase is to be made by open tender, limited tender, or single tender on a propriety article certificate basis. 13. The name of the inspecting authority and inspecting agency. 14. For self-inspection by the firm, approval of NLC-I is required as per material management manual. 15. The name of the paying authority is to be specified. 16. The terms of payment. 17. Special instructions for payment of 1. Sales tax 2. Octroi duty 3. Excise duty 4. Custom duty R. Warranty clause for the stores supplied and rectification clause in the event of stores given back to manufactures for rectification of defects. S. Liquidated damages in the event of contractor failure to have the stores ready for delivery by the date/dates specified in the contract. T. Provision for part-supply and part payment exists in A/T.

xi) The supply order has the approval of Naval Logistic Committee as per NMS for Logistic and one copy of minutes of meeting of the NLC with concurrence of IFA is enclosed.

1. Copy of the CST/PNC has been enclosed with the supply order, duly signed by the board of officer with approval of CFA.

2. The authority under which the sanction of the CFA has been accorded has been specified in the supply order.

3. In NLC cases, minutes of the meeting and CST should be scrutinized to see that the order has been placed on the lowest 97 quotation, if not reasons should be recorded.

4. Due publicity was given in calling for tenders where contract has been concluded on open tender basis.

5. In case of Limited tender enquiry, normally 4 registered suppliers should be issued tender forms

6. REPEAT ORDERS:- In the case of repeat orders, orders may be placed against previous orders with the approval of Chairman, NLC or CFA after confirming the following:-

i. There has been no downward trend in price. ii. Repeat orders are placed within six months of the original order. iii. Repeat order quantity does not exceed 50% of the original order quantity (Auth: para 15 of Material Management Manual) xviii) Orders may be split-up among two or more bidders for the reason of delivery guarantee and source development, provided the price difference between the quotes is marginal (para 15.16 of Material Management Manual)

X. AUDIT OF SUPPLY ORDERS/ALLOCATION ORDERS ISSUED BY THE DIRECT DEMANDING OFFICERS AUTHORISED BY THE D.G.S.&D.

In the case of Rate and Running contracts, certain Officers of the indenting department termed as Direct Demanding Officers are authorized by the DGS&D to place orders direct to the firms concerned.

These copies of supply orders/allocation orders should be checked to see:-

23) That they contain reference to the number and date of the 98 relevant rate contract.

24) That they are in conformity with the conditions of the main rate contract.

25) That they have been placed by officers authorized, duly signed with their designation, with name being indicated in block letters. Enclosures to the supply order should also be signed.

26) That they contain all necessary information, such as date and place of delivery, dispatch instructions, designation of the consignee, his Accounts officer, and head of account etc.

27) The monetary limit in the case of supply order is fixed with reference to quantity and rate given in the rate contract and is exclusive of sales tax, excise duty and other incidental charges which go to form part of the total cost of stores

XI. CHECKLIST OF SHIPYARD BILLS.

While audit of shipyard bills, the following points are to be seen :-

2. Sanction of Government of India, Ministry of Defence/CFA exists.

3. Contract has been concluded for the construction of vessels sanctioned by Ministry of Defence/CFA.

4. The contract sum is within the sanctioned amount.

5. The amount claimed is within the allotment.

6. If the sanctioned amount is exhausted, revised sanction would be watched.

7. Shipyard claims are supported by duplicate invoices (where such claims are indicated by zerox copies, please indicate the same). 99 8. Shipyard’s claims for advance are supported by monthly statement.

1. date of payment of advance. 2. Advance payment bills are supported with proforma invoice from the firm. 3. Receipt for advance payment made to the supplier by shipyard’s is to be watched subsequently.

9. Claims for labour, material and misc. expenditure are supported by computerized print out, which gives the details of material purchased, labour hours spent and the labour rates.

10. Where an item is purchased in bulk for number of vessels the reimbursement of entire amount spent is claimed in one bill. 1. the bill is supported by a schedule indicating the distribution of the total quantity purchased and amount spent vessel wise. 2. the amount shown vessel-wise as above, has been noted in the register for recording yard-wise expenditure.

11. The job order/work order is indicated in the re-imbursement bills.

12. Certificate from WOT.

XII.. AUDIT OF BILLS FOR SUPPLY OF STORES.

The Bills should be checked to see that:-

20) Sanction of the competent authority exists. IFA’s concurrence is obtained wherever applicable.

21)Claim is preferred as per the clause in the order/contract.

22) Funds are available. 100 23) Minutes of the PNC meeting ,NLC approval enclosed.

24) CST/PAC is enclosed.

25) Inspection note from the authorized/nominated inspection authority enclosed as per contract conditions.

26) Performance Bank Guarantee/Warrantee enclosed ,if specified in the contract.

27) C.R.V. is enclosed.

28) Claim is preferred by the firm or their agents authorized on their behalf by a duly executed power of attorney and that it is in accordance with the terms of the contract and is valid. Address of the firm given on the bill agrees with that shown in the contract.

29) Erasure, alternation or correction made in the particulars filled up in the bill are attested.

30) Bill submitted by the firm should not be passed for payment for any amount higher than that claimed.

31)In the case of advance payment claims, the claim is in accordance with the contract conditions. a) Where the stores are subject to pre-inspection, the Accounts copy No. 1 of the I/Note with only the inspection certificate portion duly completed and signed by the authorized Inspection authority exists.

32) To ensure the following documents enclosed with regard to confirmation of dispatch of stores. a. If Stores sent by Railways - Copy of R.R. duly attested b. If Stores sent by Sea - Copy of bill of landing duly attested c. If Stores sent by Air - Copy of the consignment note duly 101 attested d. If Stores sent by Post - Postal receipt in original. e. If Stores sent by Road - Copy of lorry receipt duly attested.

33) If the contractor claims re-imbursement of freight paid by them (and not as evidence of despatch of Stores), Cash receipt from Railways or the Inland Steamer Company should be enclosed with the claim.

34) When the contract stipulates inspection in stages e.g. at the time of manufacture or after erection at site, the necessary inspection certificates are furnished with each stage payment bill.

35) In case of repair Bills, see that the Ink-signed copy of Repair Order, work done certificate is enclosed.

36) In case of repair Bills of MT Vehicles, see that the no capacity certificate has been obtained from the nearest EME workshop / Naval repair workshop.

37) In case of Naval Stores / MT Stores bills, the non- availability certificate from the nearest / authorized Naval Store Depot would be required.

38) Ensure that the Stores have been delivered within the stipulated delivery period, and that the late delivery, if any, has been regularized by the competent authority. If not, liquidated damages applicable should be recovered for the period of delayed supply.

39) As per C.V.C. guidelines, advance should be made only in cases of select works and that the advance should be interest bearing so that the contractor does not draw undue benefit. The payment of interest free advance is in contravention of the guidelines issued by C.V.C. The advance should be allowed only after getting an acceptable Bank Guarantee for an equivalent amount with sufficient validity so as to fully protect the Govt. interest. 102

XIII. AUDIT OF BALANCE PAYMENT BILLS

i. See that the advance paid on the contract, if any, recovered after linking the demand register.

ii. Ensure that the Bills accompanied with the ‘Accounts Office Copy No2’ and an additional copy of inspection note No.5 with both the inspection certificates and receipt certificate portion duly completed by the inspector and consigner respectively.

iii. That the Stores have been delivered within the stipulated delivery period and that the late delivery, if any, has been regularized by the competent authority. If not, liquidated damages applicable, should be recovered for the period of delayed supply.

iv. Ensure that the C.R.V. is enclosed.

XIV. BILLS FOR SUPPLIES IN EXCESS OF THE CONTRACTED QUANTITY

1. Excess supply upto a limit of 5% of the total quantity on order on the contract or Rs.25,000/- whichever is less can be admitted, without reference to the indentor.

2. Excess supply upto a limit of 5% of the quantity on contract but exceeding Rs.25,000/- may be accepted only subject to the issue of an amendment to the sanction by the C.F.A.

3. Short supply upto 5% of the total quantity on contract or Rs.25,000/- whichever is less can be admitted. 103

XV. CHECKING OF INSPECTION NOTES

Ensure that :- 1) The inspection note issued by the Inspection authority should invariably bear not only the designation of the officer signing the Inspection Note but also indicate the authority on whose behalf he has done so.

2) The word ‘Accounts Copy No.1’ and ‘Accounts Copy No.2’ endorsed on copy No.(1) and (2) of the Inspection Note and continuation sheets thereof should also be attested with full signature of the Inspector.

iii. VALIDITY OF INSPECTION NOTES

While Auditing the Bills the following points should also be checked to see that :

The Inspection Note shall be stamped as “This Inspection Note is valid till______”. The Stores covered by such an Inspection Note must be despatched within 30 days from the date of Inspection Notes. Further period of 30 days extension will be allowed for despatch of Stores only by an officer higher to one issuing the Inspection Notes. The Inspector shall make an endorsement about the extension on the Inspection Note. If the stores are not despatched within the total period of 60 days from the date of issue of Inspection Note, the contractor will have to get the Stores re- inspected and obtain fresh Inspection Notes. The fact of the fresh Inspection Notes in lieu of the earlier ones will be mentioned on the Inspection Notes by the Inspector, indicating the printed serial No. and date of expired Inspection Note. 104

XVI. SCHEDULING OF LOCAL PURCHASE VOUCHERS

(A) Job for the D.P. Clerk :- 1. On receipt of the bills passed for payment by bill payment groups, Ensure:- 7) That all the supporting vouchers as noted on the bill are actually attached thereto. 8) That the cancellation enfacement is actually stamped on each voucher.

2. Allot disbursement voucher No. from the D.V. numbering register

3. Prepare daily payment sheets.

4. Fill in the D.V. No. on the bill as well as on all the supporting vouchers, in the space provided therefor and also in Income Tax Register.

5. Enter in the remarks column of the D.V. numbering register against the respective entry, the No. of vouchers required to be scheduled to NLAOs.

6. Detach the supporting vouchers and hand them over to scheduling clerk and obtain his initials against the entry in the DV numbering register.

7. Pass on the Daily payment sheets and the bills to the “Disbursement Section” after check and approval by the AAO. 105 (B) Job for the Scheduling Clerk :- a) On receipt of the vouchers from D.P. Clerk. i. Enter the total number of Vouchers in a simple manuscript form as shown below :-

D.V. No. No. of Date on Date of Signature with Vouchers which receipt date of handed over back from Scheduling to Test Test Audit Group Audit superintendent

ii. Watch the return of vouchers from the Test Audit through the medium of the above form.

iii. On receipt back of the vouchers from Test Audit enter the total number of vouchers as on the “Monthly summary of local purchase vouchers” (in the form given in Annexure ‘B’ to chapter VII of OM II (Vol.I) page 207) and keep this form together with the vouchers in a loose pads until the end of the month.

iv. At the end of the month add up the total number of vouchers in the pad and make sure that total number agrees with the total number shown in the D.V. numbering register. In the case of any discrepancy, reconcile the same and tally the total.

v. Sort out the vouchers by units and prepare a forwarding memo (sub- lists) for each unit. Enter thereon the name of unit, the serial number and the date of vouchers, and the total number of vouchers pertaining to each unit.

vi. Sort out the sub lists for each local audit group a top list in IAFZ- 2014 specifying : 1. Name of the Unit. 2. Total number of vouchers relating to each. 3. Total number of vouchers forwarded to the NLAOs. 106 vii. Ensure that the total number of vouchers received from the D.P. Clerk agrees with the total number scheduled outward to the NLAOs. Reconcile any discrepancies and endorse a certificate of agreement on the “Monthly summary” and get it attested by the S.O.(A) / AAO.

viii. Endorse a simple serial number (1, 2, 3, 4 etc) on each voucher attached to each sub-list.

ix. Stamp the section’s outward date stamp in the top right hand corner of all copies of the top lists, all copies of sub lists, and all the vouchers.

x. Despatch the top lists with the sub lists and vouchers under “registered cover” and FILE the office copy.

xi. Watch acknowledgement from the NLAOs through the office copies of top lists, and ISSUE reminders where necessary.

xii. When acknowledgements are received, PASTE them on the reverse of the related top-lists.

XVII. RECEIPT AND ADJUSTMENT OF PAYMENT ISSUE VOUCHERS FROM LAO

Payment issue Schedules (IAF(CDA)615) will be received from LAOs in the case of payment issues made to Civil Department etc, by Store / audit Section by 10th of the month following that to which the transactions pertain. There are three types of payment issues which are normally adjustable by ‘Stores Section viz.

AUTHORITY : Para 580 to 583 Pt.II Vol.I

i) Payment issues to Civil Departments etc., which are adjustable by book debit. ii) Payment issues when advance payments are required to be made.

iii) Conversion of loan issues of samples etc. into payment issues, 107 consequent on the failure on the part of consignee to return the samples within the stipulated time.

2. On receipt of the payment issue schedules from the LAO. Verify that:-

(8) that the schedules have been prepared separately for each category of payment issue.

(9) that the schedules have been priced by the appropriate pricing party LAO or the CDA as the case may be.

(10) in the case of issue to civil departments etc., that the schedule is supported by the receipted copy issue vouchers from the consignee or in the case of such of those State Govts. / Union Territories etc., which have accepted the principle of accepting debits on the authority of ‘Proof of despatch’ that any one of the following proofs of Despatch accompanies the payment issue schedules.

a. No. and date of Railway Receipt when the Stores are despatched by rail. b. Particulars of the postal acknowledgement receipt, where the stores are despatched by registered parcel / post. c. Receipt given by the representative of the consignee department, where the stores are collected form the Depot.

AUTHORITY : Govt. of India, Min. of Def. OM No.6(1) 58/2682/D(Dis- posals dt. 8.6.61 (Pt.I O O No. 431 of 20.7.61).

Prepare a punching medium debiting the civil department concerned and crediting ‘payment issues to civil department’ etc., and note the No.and date of TE on the payment issue schedule.

(11) In the case of issues for which advance payments are required to be made see that the payment issue schedule is accompanied by the Treasury Receipt for the amount. Note the No. and date of TR 108 TE No. and month account in which the TR adjusted on the Schedule. (12) Whenever the loan issues of samples etc. are converted into payment issues owing to the failure on the part of the consignee to return the samples within the stipulated time limits, see from the register of security deposits that necessary security deposit has been lodged by the consignee at the time of receipt of samples. Put up a transfer entry debiting security deposit and crediting payment issue of stores and note the TE No. and date in the Register of Security Deposits

3. Maintain a guard file of payment issue schedule separately for each category and file the schedules in the appropriate guard file.

4. At the end of each month, review the outstanding items of payment issue and take action towards their clearance by issuing reminders calling for the wanting treasury receipt, or the receipted copy of the vouchers, or the proof of dispatch as the case may be.

XVIII. ADJUSTMENT OT T.Rs

1. The Treasury Receipts received from the Units / Formations are entered in a Register specifying the T.R. number, date, amounts and classification in the appropriate columns.

2. Ensure that the original copies of T.Rs are sent by the Units under forwarding memo in the prescribed form vide A.O. 96/81 Retain original copy of the covering memo as office copy and return duplicate copy to the O.C. Unit / Formation duly acknowledged. Triplicate copy being endorsed to LAO concerned for information.

3. Enter in the appropriate column of the register the number and date of the communication under which acknowledgement has been given to the Units / Formations.

4. At the end of each month take the totals of al the columns 109 in the T.R. Register and put up transfer entry.

5. Enter the No. & month of the T.E. in the Register in the appropriate column.

6. Submit the Register to S.O.(A)/A.A.O./A.O for signature after completing al the columns in the Register on the 5th of each month.

7. The column to be maintained in the TR Register are S.No., Unit, Unit forwarding Memo No. and date, TR No. and Date, TR amount and Nature of remittance (in which the amount remitted for Ration, Pol. etc. is shown separately).

XIX. LINKING OF U.K. INVOICES WITH PACKING ACCOUNTS

Invoices in respect of stores purchases in U.K. and sent to India are received from PCDA(Hqrs.), New Delhi.

On receipt of the invoices.

33.(a) Verify that the stores detailed in the invoices pertain to Navy / Cost Guard and the consignee is situated in our audit area. If, however, the consignee is situated, in audit area of other Controllers, forward the invoice to the C.D.A. concerned. If part of the items noted in the invoice pertains to our audit area and the rest to other CsDA forward to the CDA concerned relevant extracts from the invoice, also indicating the freight etc., chargeable on the stores.

(b) Post the invoices pertaining to our audit area in the register of invoices.

(c) Record the invoices thus completed in a file cover maintained separately for each unit or formation dealt with in the audit area 110 (Authority :-Para 399 to 406 Def. Audit Code & paras 597 for OM Pt.II Vol.I)

Packing accounts are received from the N.L.A.O.s as soon as the ultimate consignee in India receives the stores, on receipt of these packing accounts.

1. Verify that the No. and date of the C.R.V. has been noted on the packing accounts.

2. Examine whether any damages or deficiencies have been noted on the packing accounts.

3. Take the connected invoices from the file and pair the particulars noted on the invoices with those shown on the packing accounts.

4. Endorse on invoice the particulars of damages and deficiencies, if any, noted on the packing account. Enter the No. & date of the packing account on the invoices.

5. Complete the invoice register.

6. Forward the packing account to the officer handling the stores (i.e.) embarkation authorities. At port of disembarkation and watch for the acknowledgement for receipt thereof.

3. At the end of every quarter :

(a) Review the invoice register and make out a list of invoices in receipt of which returnable copies of the packing accounts have not been received from the LAOs

(b) Take out the listed invoices from the file and sort them according to LAOs, prepare a forwarding memo to each L.A.O. and forward the invoices to them with the request to link the same with copy of the 111 packing account that maybe available with the unit or with the C.R.V. in cases where packing accounts were not received. Enter the No. and date of this forwarding memo and the LAO to whom the invoices have been forwarded against the relevant entries register. Watch for the return of the invoices from the L.A.O.s through the invoice register.

4. On receipt back of the invoices from the NLAOs, the following action to be taken :

15) If the invoices have been paired with the returnable copy of the packing account by the LAO complete the invoice register and forward the returnable copy of packing account received from the LAO alongwith the linked invoice to the Embarkation Authorities and watch for his acknowledgement.

16) If the invoice has been paired by the LAO with the retention copy of the packing account only or with the CRV only and the returnable copy is not received from the LAO, enter this fact in the invoice register as well add discrepancies to the Embarkation Authorities and obtain his acknowledgement. Watch for the returnable copy of the packing account through the invoice register.

17) If the LAO reports non receipt of stores, enter this fact in the invoice register and intimate the Embarkation Authorities, the fact of non receipt of stores and obtain his acknowledgement

18) In cases where returnable copies of packing accounts are not forth coming but the LAO certificate that (i) the stores have been taken on charge and there are no discrepancies or (ii) that the discrepancies exist but further action with Units / Formations will be taken by him till finality the requirement of production of returnable copies of packing account may be got waived by the G.O.

5. Watch for the quarterly report to be rendered by the LAOs in terms of para 402 Defence Audit Code through the medium of inward Reports and Return chart. On receipt thereof, verify that action has been taken by the Section on all cases where the stores have not been 112 received or where the concerned packing accounts were not received. Pursue the cases of non-receipt of packing accounts with the LAOs to finality.

XX. POST AUDIT OF STORES BILL PAID THROUGH IMPREST ACCOUNT

On receipt of paid Bills / DVs from Imprest Section the following points are to be seen :

14) Payments through Imprest for Stores Bills are made as per the financial powers delegated in N.I.

15) The Bills are supported by Supply Order, Invoice, Copy of CST, Non- availability Certificate in all cases, and PAC wherever applicable.

16) The Bills are supported by C.R.V.

17) After carrying out Post audit, the C.R.V.s are to be scheduled to the concerned NLAOs.

XXI LANDING AND PARKING CHARGES

a. The charges are being reimbursed to the Navy by Civil Aircrafts for using Naval Air Base viz. INS, HANSA, Goa, INS DEGA, Vizag, INS UTKROSH, Port Blair and INS GARUDA, Kochi.

b. Bills are raised by the Naval Units against the parties concerned. These bills are checked by concerned NLAOs as to the rates of landing and parking charges applied with reference to the relevant Navy instructions and the receipt of Cheque / Demand Draft is watched for.

c. After receipt of Cheques / Demand Drafts, the same are deposited into Govt. Treasury by Naval Units through MROs and 113 TRs are forwarded through NLAOs to Stores Section of Main office for adjustment.

d. The details of adjustments are noted in a Register.

XXII AUDIT OF SALE ACCOUNT

1. Disposal of surplus, obsolete and scrap stores of Navy are done through MSTC by Material Organisations (Kochi, Vizag, Mumbai).

2. Sale proceeds are remitted into Govt. Treasury and TRs enclosed with Sale Account. TR adjusted by Stores Section (M.O.)

3. While adjusting the TRs it is seen that sale release orders enclosed.

4. Claim for commission charges paid to MSTC @ 1.75% on the total amount of sale value excluding penalty and Ground Rent.

5. After payment of commission charges documents are sent to

concerned NLAOs for their Audit.

************** 114

TA TRAINING NOTES Prepared By : Shridhar R. Mayekar, A. Accounts Officer (Navy)

Temporary Duty Claim: - Overview: - Naval personnel / Coast Guard personnel / Civilian on completion of temporary duty can submit the claim for TA / DA along with the following documents. Input Documents: · Claim in IAFT-1716 (Revised) from the officer duly signed by the officer and countersigned by the controlling officer except self-controlling officer as per Appendix IV TR along with the original bills. · Move Sanction Letter from the competent authority as per Appendix III to rule 4 TR indicating purpose, source, destination, date of journey, duration of temporary duty and the particulars of the officer Movement order for proceeding on temporary duty and return to unit. · Imprest Voucher received from unit, if the officer has taken any advance from the unit for the said purpose. · Detention Certificate from temporary duty unit / establishment, etc. In case officers are proceeding on temporary duty to non military units / civil institutions detention certificate is not required. However, officers themselves should certify that they were not provided by free boarding / lodging at such units and duly counter signed. · Government sanction letter to travel by private airlines, if the journey is performed by private airlines where both the sectors are connected by I.A. flights. · Sanction of the Controlling Officer to perform the journey under own arrangements as per rule 47 (iii) T.R. incase of Naval personnel (If the officer has not used the warrants) and as per CG order No. 12 /98 in case of CG personnel (if the officer has not used concession voucher), and the stations are connected by rail. Incase of Civilians no sanction is required. · Authorization letter by a competent authority for traveling by route other than shortest or cheapest in that mode as per rule 40(A) TR for Naval personnel and as per rule FRSR part II & CG order No. 12/98 for CG personnel. · Sanction of the Competent Authority when the journey is performed by road between the places, which are connected by rail and actual expenditure, RMA / taxi fare is claimed as per Note 2 below rule 40(A) TR. · Hotel Receipts / Guest House receipt duly indicating the registration number and room rent paid per day, if officer stayed at hotel at the temporary duty station and claimed hotel rate of Daily Allowance. · Proof of expenditure i.e. railway tickets / bus tickets / air tickets / taxi receipt, if journey is performed under own arrangements. In the absence of railway ticket, class of accommodation ticket no., and PNR no. will have to be indicated in the claim. · Certificate from Airlines Company duly indicating the details of journey and expenditure incurred is required in the absence of air ticket. · Certificate of non-availability of Govt. transport from the appropriate authority when the RMA is claimed. · In case of camp allowance, certificate issued by Camp Commandant indicating that the officer actually stayed at the camp site for the duration of the camp. · Waiver sanction accorded by controlling officer in terms of rule 23(i) TR for non production of original bus ticket / railway ticket, if the original ticket is not submitted along with the claim. 115 · Sanction accorded by FOC-in-C incase officer proceeded on temporary duty to officiate in annual leave vacancy of permanent Incumbent of temporary duty unit is required with the claim in terms of rule 150 TR except AMC officer of rule 150 TR. · Incase monthly conveyance allowance is claimed sanction accorded by competent authority for such conveyance in terms of rule 222 TR is enclosed · If officers are detailed in connection with audit of non-public fund, certificate from the move sanction authorized to the effect that required no. of officers is not available locally and that only minimum of officers are detailed from nearest outstation for the purpose. · If officer proceeding temporary duty Ex-India and sanction is accorded by Integrated HQ with concurrence of Min. of Defence (Fin). · Sanction of CFA in terms of rule 188 FR part I to Waiver time bar limit if the claim is submitted after a period of 2 years after completion of journey. · Certificate regarding non-drawl of ration in cash or kind of ration through permanent duty station, if ration money is not deducted from claim.

The entitlement of journey fare (within India) is based on the pay of the Coast Guard personals / Civilian. The entitlements for journey mode of an Coast Guard personnel / Civilians are described in Table 3 below:

Entitlement of Class by Trains pay Air SHATABDI EXP OTHER TRAINS RADJDHANI EXP.

Rs. 16,400/- AC 1st class Executive class AC 1st class Economy Class & above by National Carrier

Rs. 8,000/- and AC 2nd II Tier AC Chair car AC 2nd II Tier above but less sleeper sleeper - than Rs. 16,400/- Rs. 6,500/- and AC Chair Car/ First Class/ AC III above but less AC III tier -do- tier sleeper/ AC - than Rs. 8,000/- Sleeper Chair Car

Rs. 4,100/- and above but less -do- -do- -do- - than Rs. 6,500/- Below Rs. 4,100/- Second Class (Sleeper) -

Table 1 (Journey Mode) · Pay includes basic pay + stagnation increment + NPA for civilian/CG.

· Pay includes Basic pay + Rank Pay + stagnation increment + NPA

· All Naval Personnel who are entitled to travel on duty move by first class / II AC III- Tier sleeper / AC Chair car may, at their discretion, travel by II AC 2-tier sleeper 116 where any of the trains connecting the originating and destination stations connected by the direct shortest route do not provide these three classes of accommodation.

· Travel by AC III – tier sleeper will be permissible in which AC chair car accommodation is not available.

· No officer is allowed to travel by Air in first class within India.

· The officers entitled to travel by air on duty can make use of Helicopter service introduced by Helicopter corporation of India between certain places within Indian limits, if the fare charged for helicopter is not more than the air fare otherwise admissible on that sector while traveling by IA flight.

· Travel by helicopter service of private companies is not authorized.

· In case of airfare, the officer should be of the rank of Captain and above. In case of Commander, the distance has to be more than 500 kms and journey cannot be performed overnight (6.00 PM to 8.00 AM) by direct train / sleeper coach service.

· In case of airfare, CG personnel / Civilian drawing pay between Rs. 12,300/- and Rs. 16,400/- are also entitled to travel by air, if the distance is more than 500 kms and journey cannot be performed overnight (6.00 PM to 8.00 AM) by direct train / sleeper coach service.

· Any officer / sailor / civilian drawing a pay of Rs. 8550/- pm and above proceeding on duty move to Andaman & Nicobar Islands is entitled to travel by air by economy class between Chennai / Kolkata and Port Blair. Similar is the case for the officers proceeding on duty move to Lakshadweep between Kochi / Kozhikode and Lakshadweep.

· Journey by air is to be performed by Indian Airlines. In case, if the stations are not at all connected by Indian Airlines, journey can be performed by private Airlines.

· If there is no point-to-point connectivity between the stations by Indian Airlines and the same is available by private Airlines, Journey can be performed by private Airlines.

· Officers re-employed against the vacancies tenable by a lower rank below Captain are not entitled to travel by air.

· Travel by air at Govt. expenses is not permissible to officers for journeys undertaken to receive medical attendance / treatment irrespective of whether or not officers are otherwise entitled to travel by air for duty move (Rule 108 TR). However, when considered necessary by the O.C. Hospital / M.O in-charge of a hospital the use of civil air craft may be authorised for the move of an officer from one hospital to another within Indian limits for urgent medical treatment for preserving his life provided that free conveyance is otherwise admissible or less economical. [Rule 109 T.R]

· CNS / VCNS / FOC-in-C may take along with them one of their personal staff which includes military advisor / staff officer / ADC on tour within Indian limits. Airfare is authorized to him as per his entitlement. 117 · For journeys of service personnel participating in sports, travel by air / AC 1st class is not admissible.

· In addition to Rail fare special supplementary charges, super fast charges, reservation charges are reimbursable. Tatkal seva charges are allowed in extremely emergent circumstances for duty journey by rail with the certificate of FOC-in-C or officer of equivalent.

· If journey is cancelled due to exigencies of the services then cancellation charges for cancellation of the railway / air ticket will be reimbursed with the sanction of competent authority as per rule 44 T.R / CGO No. 12 / 98 & FRSR part II.

· Service officers of the rank of Captain and above are eligible to travel by AC 1st while performing journey by rail for medical attendance and treatment [Rule 57 TR (g)]

· The facility of AC 1st is not admissible for joining post on first appointment / re- employment and release from re-employment.

· No DA is admissible for Casual Leave or Annual Leave period availed during temporary duty. If Half day C.L is availed, only half day DA is admissible. DA is not admissible for any day whether Sunday or holiday unless the officer is actually and not merely constructively in the camp.

· Halt DA would not be payable incase an officer is required to perform temporary duty for more than 180 days.

· No halt DA is admissible for the period of post commission training before they are posted to regular unit.

· No halt DA is admissible for attending investiture ceremony at Rshtrapati Bhavan for recipient officer as well as guest and for guests attending award presentation at command level.

· No halt DA is admissible for attending examination while on leave, if the station where examination is held happened to be same as leave station.

· DA is admissible at ordinary rates in case officer returns to HQ station on the same day.

· DA is admissible for attending preparatory staff college course.

· TA and journey DA are admissible for attending examination in professional subjects and language examination. Halt DA is not admissible. However, officer appearing for language aptitude test in New Delhi for detailment for language courses will be entitled to halt DA.

· TA and journey DA are admissible for appearing in obligatory departmental examination. No halt DA is admissible.

· TA and DA are admissible to officers officially sent to attend a conference, congress or meeting. Officers permitted to attend conferences; congress or 118 meeting on their own request will be allowed free conveyance only. However, sanction under rule 4(ii) TR will be required.

· Officers attached to other units for the purpose of investigation / disciplinary cases are not entitled to halt DA, unless the officer is detailed to perform some special duty during such attachment.

· Only single journey fare is admissible when temporary duty is combined with leave (other than casual leave).

· TA and DA is admissible to an officer who is moved to another station to officiate during annual leave vacancy provided, sanction of Principle staff Officer, a head of the branch at Integrated HQ / DGNCC, is obtained.

· AMC officers who are deputed to another station to fill up vacancy of medical officers / specialists on casual leave exceeding 5 days are entitled to TA / DA with sanction of CNS / Heads of the Naval HQ branches / FOC-in-C / FOC as applicable for move with in area / command / intra-command.

· Officers re-called from leave other than casual leave are entitled to TA / DA for the return journey. TA / DA for the journey from duty station to leave station while availing the balance of leave will also be admissible if the order for recall is issued by competent authority and quantum of leave initially granted should be 30 days or more and officer had availed less than half the period before recall.

· Officers participating in sports (preliminary and final rounds) organized by the sports control board will be entitled to free conveyance on warrant as per entitled class. Daily allowance for the journey and halt at the out station will not be admissible. Travel by air / rail (AC 1st class) will also not admissible.

· Officer Commanding the hospital can authorize free airlift from one hospital to another for urgent medical treatment with a view to preserving life.

· Officers / Sailors attending practice camps other than those attending with unit and attending or separators, officers attending maneuvers in their official capacity for inspection etc will be entitled to TA / DA under the normal rules.

· TA / DA is admissible to student officers and instructors attending command pre staff college at a station other than their permanent duty station.

· No halt DA is admissible if temporary duty is performed on account of the following reasons:

a) Officers / Sailors participating in collective exercise along with troops/collective training programme along with troops except instructors, observers and spectators.

b) To participate in war games except instructors, observers and spectators However, in case of computerized war games participants also will be entitled for Halt DA.

c) To attend obligatory departmental examinations at out station.

d) For attending training/courses of instructions at headquarters station 119 e) Admission in hospital for sick transfer.

f) To seek medical advise.

g) To appear for Medical Board.

h) To participate in preliminary and final rounds of in unit level championship tournaments organized by Services sports control board.

i) To attend reunion, Corps day celebrations, ceremonial parades, trouping of colours, anniversaries, dinner day and so on (AO 342/65).

j) Attachment on disciplinary grounds unless an officer is detained to perform specific duty during such a attachment.

k) Attachment on medical grounds. The calculation of daily allowance for an officer is described as below: J) Total absence of an officer is calculated as given below with reference to date and time of departure from HQ station and date and time of arrival at HQ station on completion of temporary duty a) Total absence for each calendar day is worked out from midnight to midnight (i.e. 00 hrs to 24 hrs).

b) If the absence for particular calendar day is

i. < = 6 hrs Nil D.A.

ii. > 6 hrs < = 12 hrs 70% of entitled rate of D.A.

iii. > 12 hrs Full D.A.

2. Daily allowance is divided into Journey D.A and Halt D.A with reference to total hours spent in journey and total hours of halt at the temporary duty station. However journey DA will be arrive at as follows Journey DA = Total absence from HQs – Halt DA. 3. Journey D.A. is always admitted at ordinary rate of D.A.

4. Halt D.A:

a) When the Naval officer / CG officers / Civilian has not stayed at any Hotel:

i. The Naval officer / CG officers / Civilian is entitled to receive only 25% of the halt DA, if he availed free boarding and lodging.

ii. The Naval officer / CG officers / Civilian is entitled to receive only 50% of the halt DA, if he availed free boarding.

iii. The Naval officer / CG officers / Civilian is entitled to receive only 75% of the halt DA, if he has availed lodging. 120 b) When the Naval officer / CG officers / Civilian has stayed in Hotel:

i.Entitled rate of Halt D.A. is calculated.

ii.90% of entitled rate of Halt D.A plus lodging (i.e. room rent paid per day) charges restricted to hotel rate of DA will be admissible. 75% of entitled rate of Halt D.A if stayed in Govt. Guest House plus lodging charges (i.e. room rent paid per day) restricted to hotel rate will be admissible.

##################

Permanent Duty Claims:

An officer can submit the claim in IAFA 1715 for permanent duty i.e. transferred from one location to another, and also on retirement to TA-Section, PCDA (N) by submitting the required documents specific to the advance. Input Documents: · Claim from the officer duly signed by the officer and countersigned by the controlling officers except in respect of self-controlling offices as per Appendix IV TR / CGO No. 12 / 98 along with the original bills. The retirement journey claim of all officers including officers who are their own controlling officers should be countersigned by their immediate superior Administrative authority. · Move Sanction Letter from the competent authority indicating purpose, source, destination and date of journey. · Consignment note and cash receipts (duly stamped) issued by transport company for conveyance of baggage / car / scooter indicating the places between which goods / vehicle conveyed. · Railway receipt for conveyance of baggage / car / scooter by goods train or goods wagon in case conveyed by rail. · Sanction accorded by competent authority to extend lien on conveyance of family, baggage, car and scooter when they are moved to new duty station / SPR after expiry of lien period (normal lien period is 6 months) from the date of move of officer. For move beyond one year sanction of Chief of planning (COP) will be required as per Appendix XI TR. · Receipt and bill of lading from Shipping Corporation of India Ltd. indicating total quantity / weight of baggage conveyed on posting from mainland to island and vice versa. · Sanction accorded by competent authority in terms of rule 47(III) TR to travel under own arrangements and to claim cost of warrant. · Non-availability certificate and Allotment letter issued by Station HQ at new duty station, if additional fare is claimed by the officer for brining his family to the new duty station. · If original air ticket is not produced, certificate issued by Indian Airlines duly indicating details of air journey performed by officer and family. · If the spouse of the officer is a Central Govt. servant and both husband and wife are transferred within six months from one and the same old duty station to the same duty station traveling allowance will be admissible to one of them only. If both have separate cars, transportation expenses will be admissible to both. Certificate under rule 82 (a) is required. 121 · If the family / baggage / car is moved within 6 months from the date of officer’s move. In the case of officer posted to peace station, the period of six months is calculated from the date of allotment of married accommodation lien and conveyance on children academic ground will be extended from 6 months to one year from the date of move of the officer. · In the absence of rail ticket, indication of the class of accommodation, ticket no. and PNR no. will be sufficient. · Taxi receipt will be required when journey between two stations is performed by taxi. · The claim for retirement move will be supported with Gen Form and Integrated HQ letter notifying the date of retirement and place of settlement after retirement. Lien period for moves on retirement will be one year which can be extended up to 18 months by the authorities mentioned in Appendix XI TR, Members of family and baggage may precede the officer by not more than two months from the date of retirement of the officer or follow with in one year from the date of actual move of the officer after retirement. · Time barred sanction of CFA in terms of rule 188 FR part I to waive time bar limit in case claim is submitted after a period of two years from the date of completion of journey. · Incase of female married officer certificate in terms of rule 82 TR is enclosed. · Govt. sanction accepting private air travel, if traveled by private airlines between stations connected by IA flights · If car conveyance is claimed, Xerox copies of car registration papers duly indicating that the car is registered on the officer’s name or receipt of purchase of car and sanction of competent authority for acquisition of car is required in case car is registered in officers name after move of the officer to ascertain the ownership of the car as on date of move. · Waiver sanction accorded by competent authority for non-production of original receipts and vouchers for claiming cost for conveyance of baggage / car / scooter in terms of rule 23 TR. · In case of posting abroad, Government letter / Integrated HQ letter notifying foreign posting with the concurrence Ministry of Defence (Fin). · An officer under order of transfer to another station, if sends his authorized baggage in advance of his move, but his move is changed or cancelled may be allowed the cost of transportation with the sanction of the competent Authority as per rule 16(g).

Audit Checks: The Naval personnel / Coast Guard personnel / Civilian, who is traveling on a permanent duty, i.e. transferred from one location to another is entitled for CTG (Composite Transfer grant), Journey fare (one way only for self and family if free warrant is not used), Baggage / cartage Allowance, Vehicle conveyance (car / scooter, either of the two, but only one). In case the two stations are not connected by rail, an officer can travel by his own car or by taxi. In that event he can claim the RMA (Road Mileage Allowance), depending upon the city and the mode of transportation incase of Personnel below Officer Rank navy/CG DA is admissible to maximum of 50% normal DA..

· The Officer moved on permanent duty is entitled for CTG (Composite Transfer Grant) which includes his Basic Pay + Rank Pay + Dearness Pay (50% of Basic pay), Stagnation Increment and also NPA in case of Doctors as on date of move of the officer. Incase the officer is married and moved along with the family then 100% CTG is granted. If the officer / sailor is single or married officer moved alone then only 80% of the CTG is granted.

· The officer is paid the 1/3rd of the CTG if he is moving within the same station provided there is change of accommodation is involved. Here same station means the area following within the jurisdiction of the municipality or corporation including such of suburban municipalities, notified areas or cantonment as are contiguous to the above named municipalities and with in the limits of urban agglomeration. 1/3rd of CTG is also admissible to officers who has to change his residence due to transfer from one appointment to another in the same unit / formation etc and change of domestic camp from one site to another site in the 122 same station i.e. move of unit / formation from temporary premises to the permanent building in the same station / city. · If both husband and wife are transferred from one and the same station to different stations full transfer TA will be admissible to both. However, only 60 qtls of baggage will be admissible for husband and wife together. · List of areas for local permanent duty are partly described in the Table 10 Above and in detail attached as Annexure 10.

· In the cases of First posting (i.e. newly commissioned officers / Re employed) / released from reemployed service claim for permanent duty is admissible only for journey fare and baggage of 225 kgs on warrant CTG is not admissible.

· If the officer is proceeding on study leave, TA at permanent duty scale is not admissible. However on completion of study leave, if officer is posted to the station other than his duty station from where he proceeded on study leave, TA/DA at permanent duty scale is admissible. Baggage claim will be restricted to the distance from old duty station to new duty station or actual expenditure which ever is less.

· Incase the officer / sailor posted to stations where there is married built accommodation but he was not provided by the married built accommodation then he is eligible for baggage allowances, cartage allowances, travelling Allowances for his family to his home town or to any selected place of residence (SPR) any where in India but the entitlement is for the distance of current location to the posted location.

· If the officer is posted to embassies located abroad, he will be entitled for TA on permanent duty scale. However, in case an officer serving abroad avails the services of the panel of packers CTG will not be admissible.

· Incase married accommodation is not available in the new duty station officer is entitled for additional fare for journey from new duty station to old duty station / SPR and back for bringing his family. Incase family was retained at old duty station on academic grounds; no additional fare to bring the family will be admissible.

· On release from reemployed service, officer and family will be entitled to conveyance as per rule 64 TR, if the officer has availed retirement TA at permanent duty scale at the time of superanuation.

· A family member added to the family after the date of transfer of the officer will not be entitled for traveling allowance.

· If the officer is posted from mainland to island and vice versa, and officer drawing basic pay of Rs. 8,550/- and above then he and his family can travel by air irrespective of their rank in economy class. Baggage claim, conveyance of car / scooter, etc. from mainland to island and back will be regulated as per rules. Reimbursement will be made for the charges levied by Shipping Corporation of India either by weight or volume (Maximum admissible is 6000 kgs or 940 cubic feet) so long as weight of the baggage is within the laid down entitlement of the officer.

· In case of retirement, journey use of free railway warrant is not admissible. 123 The entitlement of journey fare is based on the rank of the officer. The entitlements for journey mode of an officer are described in Table 2 above and the relevant condition stipulated for air / rail / road journey.

· All Naval Personnel who are entitled to travel on duty move by first class / II AC III- Tier sleeper / AC Chair car may, at their discretion, travel by II AC 2-tier sleeper where any of the trains connecting the originating and destination stations connected by the direct shortest route do not provide these three classes of accommodation.