Session: 1(Cover Page)

Structured Training Manual On Audit Of Finance And APPROPRIATION ACCOUNTS OF Railways Regional Training Institute, Kolkata CGO Complex, (5th Floor, A-Wing), DF Block Salt Lake, Kolkata-70064 June, 2014 (Revised and updated in November 2015) Preface Structured Training Manual on Audit of Finance and Appropriation Accounts of Railways Training Need: In view of Railway organization’s huge net work with multiple activities and procedural diversities in different Departments and units of the Indian Railways the accounting systems and set up are also different. The Railways in India are as much as Government concern as well as commercial enterprise as they are engaged in manufacturing and in selling of transport services thus earning profits, maintaining its own assets and paying interest (i.e. dividend) to the General Revenues. The Government Accounts are kept purely on cash basis whereas the accounts of the Railways are kept on accrual basis. While the Railway is required to keep the records, prepare and present the reports in commercial terms it has also to feed the information to Government in the format prescribed for that. Therefore, the Railway has to maintain various accounts and records for meeting the requirements of both. It is, therefore, necessary to equip the Railway Audit offices to conduct audit of Railway finance and Appropriation Accounts with the systematized training documents for continuous training of officers and staff working in Railway Audit. Hence, this Structured Training Manual has been prepared to cope up with the situation. Aim: The training will equip the participants with adequate knowledge of the Accounting Structure of Railways and various types of accounts/statements and documents prepared to reflect the financial picture of the Railways. It will thus familiarize the participants with key areas of finance and appropriation accounts and enable them to conduct audit of the Railway’s finance and appropriation accounts efficiently and effectively. Objectives: At the end of the training, the participants will i) Formulate an overall background of the Indian Railways. ii) Know about the back ground for separation of Railway Finance and Budget from the main budget (i.e. General Budget) of Government of India and formation of separate accounting wing under Railway Finance Commissioner. Training Manual on Audit of Railway Finance and Appropriation Accounts i iii iii) Various duties and functions of Accounts Department. iii) Form an idea about the Accounting structures of the Indian Railways and the basic concepts of the Accounting system of the Indian Railways. iv) Various books of accounts prepared/maintained by the Railway Accounts Offices (Open line, Construction, Stores, Workshops and Traffic) and necessity of preparation of various accounts. v) Acquire an understanding of the basic concept of the Railway Budget, Grants and Appropriation Accounts. vi) Understand the Duties and Powers of the Comptroller and Auditor General of India with reference to Railway Finance and Appropriation Accounts and certificates to be issued by Principal Director of Audit, Zonal Railways. vii) Audit of Railway Finance and Appropriation Accounts in the present environment. Training Manual on Audit of Railway Finance and Appropriation Accounts iii Contents Page No. 1. List of Abbreviations and Acronyms iv 2. Sessions at a glance v-vi Session 1 Introduction and Organisational Set-up of Indian Railways. Need for separation of Railway Finance and Budget from General Budget of ii 3. 1 Govt. of India and formation of separate accounting wing of Railway and functions of Accounts Department. Instructor’s Guide 2 Participants’ Note 3-11 Print outs of PowerPoint slides 12-15 Participants’ exercises 16-18 4. Session 2 Accounting System of Railways and Structure of Railway Accounts. 20 Instructor’s Guide 21 Participants’ Note 22-33 Print outs of PowerPoint slides 34-37 Participants’ exercises 38-40 Session 3 Different kinds of Accounts and records maintained and prepared by 5. Accounts Office (Open line, Construction, Stores, Workshop & 41 Traffic). Instructor’s Guide 42 Participants’ Note 43-61 Print outs of PowerPoint slides 62-65 Participants’ exercises 66-70 6. Session 4 Compilation of various Important Accounts by the Accounts Office. 72 Instructor’s Guide 73 Participants’ Note 74-81 Print outs of PowerPoint slides 82-86 Participants’ exercises 87-89 7. Session 5 Railway Budget and Appropriation Accounts 90 Instructor’s Guide 91 Participants’ Note 92-103 Print outs of PowerPoint slides 104-108 Participants’ exercises 109-113 Session 6 Software being used by Railways to finalise A/Cs 115 Instructor’s Guide 116 Participants’ Note 117 Print outs of PowerPoint slides 125 8. Session 7 Audit of Railway Finance And Appropriation Accounts 131 Instructor’s Guide 132 Participants’ Note 133 Print outs of PowerPoint slides 188 Participants’ exercises 192 Training Manual on Audit of Railway Finance and Appropriation Accounts iii List of Abbreviations and Acronyms Sl. Abbreviated Full Form Sl. Abbreviated Full Form No. Form No. Form Research, Designs Railway Code for the 1 RDSO and Standards 11 E Engineering Organisation Department 2 GM General Manager Railway Code for Divisional Railway 12 A Accounts Department 3 DRM Manager (Part I & II) Financial Advisor and Railway Code for 13 S 4 FA&CAO Chief Accounts Stores Department Officer Railway Code for Principal Director of 14 Mechanical 5 PDA W Audit Department Depreciation Indian Railway 6 DRF Reserved Fund 15 F Financial Code, (Vol. 7 DF Development Fund I & II) CF Capital Fund Workshop Open-Line Works 16 WMS Manufacturing 8 OLWR (Revenue) Suspense Account Workshop General 9 RSF Railway Safety Fund 17 WGR Railway Audit Register 10 RAM Manual 18 SS Stores Suspense 19 DP Demands Payable iv Training Manual on Audit of Railway Finance and Appropriation Accounts iii Training Objectives & Session at a glance Regional Training Institute, Kolkata Training Manual on Audit of Railway Finance and Appropriation Accounts. Training Objective: Familiarization with the conceptual and organizational and accounting frameworks of the Railways, reasons for keeping of various accounts vis-a vis enabling the participants to- (i) understand the Railways accounting system and Structure of Railway Accounts, different heads of accounts maintained. (ii) basic records maintained/kept by the accounts department of Railway, (iii)types of different accounts prepared, (iv) method of compilation of various accounts, (v) why and how annual budget is prepared, (vi) reasons for preparation of Appropriation Accounts, (vii) duties and responsibilities of C & AG in connection with Railway Finance and Appropriation Accounts and different audit checks to be exercised. Training Method: Interactive lectures, PowerPoint Presentations and exercises Sessions at a glance Day 1 Session Time Required Topic Introduction and Organisational Set-up of Indian Railways. Forenoon 1 150 mins Need for separation of Railway Finance and Session Budget from General Budget of Govt. of India and formation of separate accounting wing of Railway and functions of Accounts Department. Accounting System of Railways and Structure of Afternoon 2 150 mins Railway Accounts. Session -do- Day 2 Session Time Required Topic -do- Forenoon Different kinds of Accounts and records 2 & 3 150 mins Session maintained and prepared by Accounts Office (Open line, Construction, Workshop, Stores & Traffic). -do- Afternoon 3 150 mins Session -do- v Training Manual on Audit of Railway Finance and Appropriation Accounts iii Training Objectives & Session at a glance Day 3 Session Time Required Topic -do- Forenoon 3 & 4 150 mins Session Compilation of various Important Accounts by the Accounts Office. -do- Afternoon 4 150 mins Session -do- Day 4 Session Time Required Topic Forenoon 5 150 mins Railway Budget and Appropriation Accounts. Session Afternoon Software being used by the Railway for 6 150 mins Session finalizing their Accounts - An Overview Day 5 Session Time Required Topic Audit of Railway Finance Accounts including Forenoon various Railway books & Accounts, Accounts 7 150 mins Session Current of Open line, Construction, Stores, Workshop & Traffic. Afternoon 7 150 mins -do- Session Day 6 Session Time Required Topic -do Forenoon 7 150 mins Session -do- Afternoon Test 150 mins Session Valediction Training Manual on Audit of Railway Finance and Appropriation Accounts iii Training Manual on Audit of Railway Finance and Appropriation Accounts iii Session: 1 Introduction and Organizational Set-up of Indian Railways; back ground for separation of Indian Railway finances from General finances and creation of separate finance department of Railways, set up and functions of Accounts Department. STM on Audit of Railway Finance and Appropriation 1 Instructor’s Guide Session 1 Session Title: Introduction and Organisational Set-up of Session Guide Indian Railways; back ground for separation of Indian Railway finances from General finances and creation of separate finance department of Railways, set up and functions of Accounts Department. Reference Participants’ Instructor’s Guide Response Session Overview Welcome participants to the session and remind Lecture them that their active participation is critical for the success of each session. Learning Objective Inform: Lecture Given the inputs of overall views of Indian Railways through group discussion, lecture and Power Point slide show, the participants will, at the end of the session, be able to grasp the basic concepts of set up of

Load more